Jacksonville Finance Committee Budget Hearing #5 – August 26, 2026
Jacksonville Finance Committee Budget Hearing #5 – August 26, 2026
The Finance Committee, chaired by Will Lahnen, held the fifth budget hearing for fiscal year 2026-27 on August 26, 2026, from 9:00 AM to approximately 5:00 PM. The committee reviewed the Debt Affordability Study, the Capital Improvement Plan (CIP), city venues, sports and entertainment, public works, building inspection, and the Kids Hope Alliance (KHA) budget. Numerous recommendations and amendments were adopted, and the committee declared itself finished with its work, leaving final enhancements to be considered on August 27.
Consent Calendar
- Approved multiple technical recommendations from the Council Auditor’s Office, including adjustments to debt management fund appropriations, grant funding reclassifications, and corrections to project names and funding sources. These were passed by voice vote with no objection.
- Approved recommendations to increase the Art and Public Places Trust Fund contribution by $2,888, to reduce mobility fee appropriations for Zone 5 and Zone 6 projects based on available funding, and to reflect a $3 million Jaguars contribution as grant funding rather than prior year revenue.
- Approved recommendations to correct fund sources for the combined 911 communication center, arena concourse flooring, Veterans Community Center, and other projects.
- Approved a technical recommendation to transfer $3.9 million from the general fund directly to the city venues legends fund.
- Approved a recommendation to put all funding related to the Florida-Georgia football game (including $3 million in team payments and $300,000 for a Hall of Fame luncheon) below the line until a contract is approved by City Council.
- Approved a recommendation to add two new city arborist positions in the Parks Department, waiving a tree commission opinion requirement.
Public Comments & Testimony
- Leon Baxton (Communities in Schools) spoke against a proposed $5 million cut to the Kids Hope Alliance budget, stating that it would force reductions in after-school seats, summer camp slots, and support services. He noted that providers already operate at maximum capacity and that a 10% cut would directly harm children and families, especially those relying on meals and academic support.
- Several other providers were present but did not speak formally; their presence signaled opposition to cuts.
Discussion Items
- Debt Affordability Study (Anna Brochet, CFO): The study showed all debt metrics currently in the “green” (favorable) zone, but some measures could exceed targets in 2030-2031 if the full $2.1 billion in proposed debt is issued. The CFO noted that actual debt takedown is usually slower than assumed, moderating risk. Chair Lahnen highlighted that overall debt as a percentage of market value has remained flat, and debt service as a percentage of revenues has also stayed flat. He reiterated the goal of resetting the CIP to a normal level after several years of large generational projects.
- Capital Improvement Plan (CIP): The committee reviewed the five-year CIP district by district. Key discussions included:
- James Weldon Johnson Park: A proposed $1.75 million increase (including $1 million in lost grants and $675,000 new money) sparked debate. Some members questioned the $8 million total cost for a two-acre park, while others emphasized its historic significance. The committee deferred action, requesting a presentation at the next finance meeting on September 15.
- Emerald Trail Segment 9: A $30 million city-funded segment was approved as proposed, with assurances from Public Works that it is properly value-engineered.
- District 13 enhancements: Two new projects were added: a $174,000 Hannah Park campground improvement (funded by a transfer from Hannah Park) and a $2.22 million Neptune Beach King’s Road roundabout (outer-year funding). A motion by Councilmember Diamond to add $980,000 for the Dutton Island project in FY27-28 passed.
- District 5 enhancement: A $250,000 design and survey for drainage improvements on San Jose Boulevard was added, funded by debt pending identification of an offset.
- City Venues and Sports & Entertainment: The committee reviewed new fund structures for the stadium operations (non-stadium and stadium portions). A recommendation to directly transfer general fund subsidies to the legends fund passed. The special events fund showed a $3.4 million decrease due to the Florida-Georgia game being played out of town.
- Public Works and Building Inspection: The committee noted a $5.9 million increase in the Public Works general fund budget, largely due to contractual increases for mowing and street light maintenance. The Building Inspection fund faces a decline in fund balance from $17 million to $10 million, with future concerns if trends continue.
- Kids Hope Alliance (KHA) Budget: The KHA budget of $57.8 million (plus $2.26 million for Journey Forward) generated extensive debate. Chair Lahnen proposed a $5 million reduction (10% of the contingency), citing 11% compound annual growth versus 8% for public safety. After testimony from KHA interim CEO Dana Krisner and public speaker Leon Baxton, the committee ultimately withdrew the motion, agreeing to address possible cuts during the September 15 consideration of Bill 511.
Key Outcomes
- Votes & Decisions:
- Lapse Motion (3% on three departments): Passed (5-1, with Councilmember Johnson dissenting). Requires Public Works, Parks, and Libraries to achieve $5.2 million in savings (later adjusted from $4.8 million), placed as a non-departmental lapse.
- Recurring Council Strategic Contracts: Approved four items totaling $725,000 (Walk Off Charities, FOP Foundation, Family Nurturing Center, and Salvation Army job placement) for inclusion in the budget.
- Hogpen Creek Study: Approved $250,000 from council strategic initiatives for a long-term study.
- Howland Amendment (reallocation from TDC): Passed. Moved $519,409 from the Tourist Development Council’s international route marketing contingency to fund the Gator Bowl ($464,409) and Florida-FSU baseball game ($55,000) in the TDC fund, freeing general fund dollars. Those funds were then allocated: $350,000 to the Police Athletic League (PAL) for facility upgrades, $90,000 to the Jacksonville Housing Authority (JHA) for employee health insurance premium increases, and $79,409 returned to council contingency.
- White Amendment (telescope funding): Passed. Moved the second $750,000 installment for the MOSH relocation telescope from below the line to the “Amendment Three bucket” (contingent on the amendment’s passage).
- Lehnen Amendment (consolidate contingencies): Passed. All remaining unallocated contingency funds (approximately $22.65 million) were placed into a single public safety contingency to be used for previously approved JSO lease buy-down ($14 million), JSO warehouse consolidation ($10 million), and JFRD CO2 removal ($2 million). Any shortfall from the $26 million total will come from operating reserves. Additionally, $8.35 million remains in the Amendment Three bucket.
- Homeless Commission Contract Adjustments: Approved $229,846 increase to City Rescue Mission and Trinity Rescue Mission for bed rates and additional beds, funded from the homelessness initiatives fund.
- Directives & Next Steps:
- The committee concluded its budget review. Remaining enhancement requests from non-finance committee councilmembers will be considered on August 27 after the JAA presentation.
- The James Weldon Johnson Park funding decision is postponed to the September 15 finance committee meeting, where a presentation is scheduled.
- KHA budget finalization will occur with Bill 511 on September 15; the $5 million reduction proposal was withdrawn but may resurface.
- The administration will provide additional details on the JSO warehouse consolidation project and the planned Army-Navy game bid by the September finance committee.
- The committee adopted a flat year-over-year budget target, emphasizing fiscal prudence ahead of the November election and potential Amendment Three impacts.
Meeting Transcript
Good morning, everyone, and welcome to meeting number five to review the fiscal year 2026-27 City of Jacksonville budget. We'll start off with introductions to my less uh left with uh Ms. Collins. Kathleen Collins Budget Office. Mike Weinstein, Mayor's Office. Willie Peterson, Council Otter. Brian Parks, Council Auditor's Office. Mary Stefopoulos, Office of General Counsel. Good morning, Rory Diamond, District 13, the beaches. Good morning, Chris Miller, at large group five. Will Lane in District 3. Good morning. I made it, Terrence Freeman at large group one. Mike, District 2. Randy White, District 2. Well, Nick Howland at large group three. Ron Segum Group 2 at large visiting. All right, good morning, everyone. A couple housekeeping things. So uh I know Councilmember Freeman is going to have to leave us this morning at some point. And then Councilmember Diamond will have uh an excusal starting at 10 30. So when we get into the CIP discussion, if we aren't to district 13 by about 10, which I don't think we will be, we will jump to District 13 since the uh district council member will be here uh for that. Uh and I think uh with that we do have a number of uh uh finance committee wrap-up items I want to knock out at the end of today. I don't think we'll be here uh uh too late today uh after lunch. So there are a number of committee items I want to wrap up so we can get all of our items done ahead of wrap up date tomorrow when I expect a number of uh visiting council members uh to attend. So basically I want to get to a point. Hey, we are done as a finance committee. These are what our numbers are when we wrap up, because again, one of the things I've been trying to communicate to our uh other council members is if you bring in request tomorrow, really the two questions are gonna be is there an offset and how much of your CBA budget do you still have remaining? Uh so with that, uh I don't see anyone in the queue, so we will go ahead and uh turn it over to Mr. Peterson through the chair. Uh Ms. Brochet, I believe, is going to give uh you a presentation on the debt affordability study. Morning, Miss Burchet. Good morning. Good morning, Mr. Chairman, good morning, Finance Committee. Anna Brochet, CFO. Um I am gonna walk through the debt affordability study, which is the presentation that you should have in front of you. Um it will be on the screen, but also um for you to have in front of you because it's such riveting work. Um I also have with me uh Chris Cicero, our city treasurer, and Alan Getz, our senior debt manager, um, who help us manage our debt profile and portfolio. We are here to present the budget update version of the debt affordability study, uh, which is an update to the baseline version. You got the baseline version in May, June, and you received the budget update version of the debt affordability study on August 3rd. Um I know that Council President Howland and Mr. Chairman have uh been very vocal in their desire to reduce our total capital improvement plan numbers so as to manage our impact on the outstanding debt that we have. Um I appreciate our collective effort to manage our debt profile responsibly. Um, and the debt affordability metrics that you'll see in this presentation allow the city council to see the big picture uh of the impact of the decisions that you're making when you approve the CIP. One final point before I dive into the presentation. Um it's important to note that all three of the independent rating agencies affirmed our strong double A credit ratings with a stable outlook after considering Mayor Deegan's proposed CIP and the data underlying this particular presentation. So with that, um I will move on to page two. Feel free to ask questions as we go along.
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