Peyton: City should cut staff and pension, raise taxes - Business First of Columbus:

tatyanagepoji.blogspot.com
The city faces a $180 million budget gap aftetr losing $100 million worth of property tax revenue dueto Tallahassee-initiatexd property tax reform, $40 million through the global economic crisixs and $40 million in increasedx pension costs. Although the city isn’f at risk of defaulting on its bondsx ormissing payroll, its spending model isn’t sustainable. Peyton said he will proposes to the City Council July 13 that it cutthe city’as operating budget by $40 million by reducing non-publifc safety operating budget by 5 percent and eliminate more than 100 He also wants to freeze pay for all city employeese and give an unpaix furlough of a week or two to all non-publicc safety employees.
Peyton said one way to modifyhthe city’s pension plan, which has a $1.2 billion unfundedc liability, would be to reduce the 8.4 percen t rate of return, have participants contribute and changr the retirement age and years of service “We can no longer provide what no one in the countr gets today,” said Peyton at the unveilingh of the initiative “ Fix It Now” at the Times-Union Performintg Arts Center. To plug the remainingy $60 million budget gap, Peyton said the millaged rate will have to be increaserdfrom 8.48 to 9.
69, meaning the averagde homeowner will spend $115 more next He said critics will say that in this current economi climate the city should tighten its belt by not raisinyg taxes but by cutting its services. “That’s not a plan,” said “That’s a bumper sticker.” The cutting of services would reducethe city’s quality of life, which has been an economicx driver. Without the raised taxes, the city would have to close two fire five libraries, 10 community and senior centers, the Cecilo Equestrian Center and The Ritz Theate and LaVilla Museum.
Without the revenue generated through the increasexdproperty taxes, the city would also have to eliminates its recycling program, cut children’s programs and reducwe funding for special events, such as the Jacksonville Jazz World of Nations and Make A Scene. The City Councikl will vote to set the millage rate July 28 andthe city’sa budget needs to be approved by Sept. 27. For more informatioh on Peyton’s plan, check out