Item 9AAGENDA ITEM # 9A
MAY 14, 2007
May 8, 2007
MEMORANDUM
TO: The Honorable Mayor
and Members of the Commission
FROM: Jim Hansoi
C"'Fi y anager
SUBJECT: City Man er's Report
Property Tax Reform and Budget Preparation; The Florida Legislature has debated several
proposals that would require the reduction of property tax collections by cities and counties. The
House and Senate versions differ dramatically and the Legislature was unable to come to a
compromise before the end of the regular session. However, a special session is slated to begin
on June 12th to resolve the differences. It appeazs that a dramatic reduction in property tax
receipts will be mandated.
City staff has been preparing budget projections for several weeks and final budget proposals
from the Departments will be needed prior to the final decisions of the Florida General
Assembly. In order to present an appropriate range of budget options for the Commission to
consider, City Department Heads have been requested to propose reductions to their budgets
amounting to 10% of the current years allocations. In other words, they are requested to let me
know their recommendations for expenditure cuts and resulting service reductions if their budget
for next year is 90% of what it is for the current year.
Considering the possible impact of the state legislature's mandated property tax reductions at this
time will allow us to present a draft budget with a range of options that will allow the City to
meet the State requirements for the upcoming year. As in past yeazs, a draft budget will be
presented to the City Commission on or before August 1, 2007. Any significant service level
cuts to the City's operations must be approved by the City Commission in connection with the
budget process.
Commission Workshop; The regulaz commission workshop scheduled for Tuesday, May 15th is
cancelled. There aze no subjects to discuss at that time. Also, May 15th will be an election day
in Duval County and the Commission Chambers will not be available on that date.
Annual Board Reception; The date of Thursday, September 6th at 6:30 pm has been scheduled
for the Annual Board and Committee Reception at the Sea Turtle Hotel.
National Hurricane Awareness Week; National Hurricane Awareness Week is May 20th
through May 26 , 2007.