Peyton to use $5.6 million in reserves to balance the current budget

Jacksonville Mayor John Peyton received the City Council’s blessing to use $5.6 million in reserves to balance the current fiscal year’s budget.

The city faces a $22 million deficit, mainly because of lower-than-projected revenue from the state and because unions haven’t approved salary cuts. Roughly $9.5 million in reserves was already built into the budget but that still leaves a $12.5 million gap.

Mickey Miller, the city’s director of finance, told council members Thursday that the deficit will be addressed through a three-pronged approach: about $2 million in budget cuts, $5 million that will be recovered from excess risk management premiums the city paid, and the rest from reserves.

Council President Richard Clark said he approves of tapping into the operating reserves account, which has about a $37 million balance.

A separate emergency reserve fund has roughly $44 million. That fund is not being touched.

Peyton already has announced he will cut library hours, let nearly an entire firefighter recruit class go, and cut 14 more jobs from various departments.

He also wants to remove fire engines from two stations. However, to avoid another union fight, he will ask the council to sign off on that plan before it is implemented.

Clark said he will support the mayor’s fire department cuts. He said reserves should be tapped as a last resort and encouraged the mayor to seek additional cuts in expenses, including more layoffs if possible.

Councilwoman E. Denise Lee had a much different stance. She said she would rather see the city use more reserves if it could keep people from losing work during this recession.