JACKSONVILLE, FL

May 10, 2012

FOR IMMEDIATE RELEASE

The Concerned Taxpayers of Duval County (“CTDC”) praise Mayor Alvin Brown for his stand on cost-savings at the new courthouse and congratulate him for his veto of the City Council’s attempt to force disbursement of $750,000 in taxpayer money to pay for furniture in 37 hearing rooms.

“At over $20,000 for a table and chairs in each room the Mayor is right to say the courts need to reduce, reuse and recycle as much as possible with what is in the current courthouse and in city inventories,” said Victor Wilhelm, a director and former president of the CTDC.  “The Mayor’s frugal attitude is refreshingly different from that of Chief Judge Donald Moran, who presided over the nearly doubled construction costs for the courts and who has threatened to let the new facility sit unused unless he gets new furniture.  There is no irony in the fact that while the Mayor took a voluntary pay cut Judge Moran is both collecting a $113,000 annual pension as a retired judge and his $142,000 salary as a sitting judge, and is more than halfway vested to getting a second pension as judge.  On top of that Judge Moran got a lump sum retirement distribution from the state in 2008 of over $571,000.  The judge said he might loan the courthouse a few card tables until the furniture he wants arrives.  Maybe Judge Moran could use part of the million dollars plus he’s been paid by the taxpayers in the last three and a half years to chip in.”

Nick Callahan, a CTDC member who initially researched the “double dip” enjoyed by Judge Moran, noted that technically the Judge “retired” for pension collection purposes in June 2003.  For five years after that the state paid Judge Moran his full salary and also paid his pension, initially over $89,000 a year, into a Deferred Retirement Option Program (DROP) account.  In 2008 Judge Moran was allowed by the retirement system to finish his term as judge and officially retire from state employment, taking the lump sum and then collecting his pension directly.  Judge Moran, however, took advantage of a loophole by taking office again following his unopposed election in 2008.  The judge then began also earning credit toward a second state pension from the start of his new term as though he were a newly elected official.  If Judge Moran serves or buys in another two years and nine months he will be vested and eligible to receive a second lifetime pension on top of the first.  Assuming Judge Moran is reelected in 2014 and serves until his mandatory retirement date at the end of 2015, his second pension should start at approximately $30,000 a year, on top of the first pension (currently over $113,000).

Information in this press release is based on responses to public record requests directed to Senior Benefits Analysts at the Florida Department of Management Services, Division of Retirement, Research and Education Section, and applicable Florida Statutes.  Additional information is available from John Winkler,  CTDC president, jswpa@yahoo.com or (904) 384-9918.

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A recent article in a local paper referenced the need and value for Taxpayer funded lobbyists.

Taxpayer Funded Lobbyists

Should Taxpayer money be used to lobby on behalf of the city government politicians?  It appears that more often than not that these lobbyists work AGAINST the interests of Taxpayers.

CTDC members recall in particular how the Taxpayer’s money was used to lobby directly against Taxpayer interests.  During our effort to get the Taxpayer Protection Amendment on the ballot, powerful municipal government special interests poured money into lobbyists to defeat the bill to put the amendment on the ballot.

The local politicos appear more interested in using taxpayer funds to fuel lobbyists for “revenue enhancements” and other schemes to get even more Taxpayer money.

Even if all this was not the case, don’t we elect representatives to lobby Tallahassee for our interests?  Isn’t that the entire point of having elected representation?  Taxpayer’s already pay the salaries of politicians and their staff to speak (in theory) on our behalf.

Of the dozens of high paid political appointees by the mayor, couldn’t a few bother to follow what is going on in Tallahassee or (god forbid) make the two hour trip to Tallahassee to speak to these issues or just make a phone call? After all, this is the job that they are paid for.  Perhaps the mayor’s staff is too busy tending to local affairs.  Duval County has a delegation of state house and senate representatives that are elected to represent our interests.  Why do they need lobbyists influencing their decisions?

It would appear that the city is faced with perpetual budget “gaps” year after year.  Isn’t time to start spending hard earned Taxpayer money on the essentials first before worrying about lining the pockets of lobbyists and special interests?  Tell the Duval Delegation and the mayor’s staff to start doing their job and do a little homework on what’s going on.  Perhaps pick up the phone or make a day trip to Tallahassee once in a while.

Taxpayers already pay through the nose for the salaries of elected officials and their staff, not to mention the cost of funding elections.  We have already paid our share for representation of our interests.  If politicians are too busy representing special interests instead of constituent interests, it is time for them to go!

Please feel free to leave your comments below and tell us what you think.

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President John Winkler discusses the JEDC, dog parks and other citywide issues with board member Tony Bates.

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President John Winkler discusses the JEDC, dog parks and other citywide issues with board member Tony Bates.

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President John Winkler discusses about crime, police and the JEDC with board member Tony Bates.

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President John Winkler discusses about crime, police and the JEDC with board member Tony Bates.

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In spite of all this, Taxpayers only have a 40% say in how the Police and Fire Pension Fund is managed.  Of the five members who oversee  Police and Fire Pension Fund (PFPF), only two are appointed by City Council on behalf of the Taxpayer.  The  PFPF is poorly managed.  Administrative costs are high and the funds under perform relative to similar pension funds.

It is no coincidence that the PFPF fights every attempt at transparency as they collect high salaries and enjoy lucrative benefits.

At the very least, Taxpayers deserve to have a proportional representation on the PFPF board of trustees.  To that end, the Concerned Taxpayers of Duval County has adopted the following resolution.

Resolution adopted by Concerned Taxpayers of Duval Co. on January 9, 2012

To the Mayor and City Council ofJacksonvilleFL:

WHEREAS, the City of Jacksonville (“City”) provides about 80% of the funds that are contributed from all sources to the Jacksonville Police & Fire Pension Fund (“PFPF”), and this percentage is projected to increase; and

WHEREAS, the employees participating in the PFPF provide about 10% of the funds that are contributed from all sources to the PFPF, and this percentage is likely to decrease; and

WHEREAS, the remaining contributions to the PFPF principally come from premium taxes collected by the State respecting Duval County properties, and this percentage is also likely to decrease; and

WHEREAS, the PFPF is administered by a 5 member board of trustees, which invests assets, incurs liabilities, hires staff, and makes various expenditures, which in recent years have exceeded $7 million per year, exclusive of benefit payments; and

WHEREAS, employees participating in (benefiting from) the PFPF elect 2 of the trustees of the PFPF, while the City Council, on behalf of the City, appoints 2 of the trustees of the PFPF; and

WHEREAS, those 4 trustees of the PFPF choose a 5th trustee, who the City Council must by law appoint (ratify) as a ministerial matter; and

WHEREAS, the City thus directly appoints only 2 out of 5 trustees of the PFPF, and thereby lacks the power to control the operations of the PFPF; and

WHEREAS, the City needs to have, and deserves to have, the chance to exercise control over PFPF operations, because the City provides 80% of all contributions to the PFPF, and thus all decisions by the PFPF trustees principally affect the City and its taxpayers; and

WHEREAS, State legislation adopted in 2011 empowers the City to modify local law to directly appoint 3 of 5 PFPF trustees (see Curtis Lee’s letter to City Council et al dated Dec. 7, 2011); and

WHEREAS, such a change is not only fair, but proper because the PFPF has very high operating costs, substantial waste and abuse, and poor investment results; i.e., it has a poor track record;

WHEREAS, all existing PFPF trustees and executives have served at least 5 years, and many have served more than 20 years, with the result being that all such incumbents are implicated in the waste, abuse and poor financial results that afflict the PFPF; and

WHEREAS, a failure by the City to take advantage of the opportunity presented by the 2011 State legislation will result in continued harm to City taxpayers, because the PFPF has a poor track record, and is very costly to taxpayers – the PFPF costs the City and its taxpayers over 8% of the City’s General Fund Budget currently, and such percentage is projected to increase;

NOW, THEREFORE, BE IT RESOLVED, that the City Council and administration should obtain legal opinions and take all necessary action to effectuate such changes in local law, and then should appoint 3 new trustees of the PFPF, with the objective of replacing current management of the PFPF, reducing costs, waste and abuse, and reforming the PFPF.

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The audit reinforces what we have been saying all along.  The promises made by the advocates of corporate welfare in the form of the Jacksonville Economic Development Commission are often not delivered.  With over a decade long track record of corporate giveaways, handouts and bailouts, taxpayers have little to nothing to show for millions of dollars that have been “invested” .

We applaud the new mayoral administration’s proposed elimination of the JEDC but are skeptical of the dubious effort to re-brand corporate welfare as “public private partnerships” or P3s or PPPs.  Unfortunately the P3s being touted bear no resemblance to the Navy aircraft flying over the city.  Instead, P3s are just another euphemism for corporate welfare schemes where taxpayers bear all the risk of capital financing for a project and private individuals benefit when there (rarely) is a profit.

Now Mayor Brown has promised to reform the concept and focus on Downtown.   Haven’t we heard the broken promises before? Lavilla Redevelopment?  ? Lavilla BistroRiver City Renaissance?  Courthouse?  Genovar Hall?  Shipyards?  Skyway People Mover? Our own John Winkler has performed his own investigation to summarize the just a few of the failed promises of the sages at city hall.  The investigation is featured on our November show.

We do not doubt the sincerity of those who would like to see the urban core thrive.  In fact, we would like to see downtown turn into a prosperous area where people actually enjoy going.   Unfortunately, taxpayers can not afford to lose any more money on risky giveaways disguised as “investments” for some unquantifiable and intangible public good.

We urge Mayor Brown to reconsider the public dollar giveaway to the aspiring robber barons camouflaged as philanthropists.

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Board members Tony Bates and John Winkler talk about corporate welfare and the Jacksonville Economic Development Commission.

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Board members Tony Bates and John Winkler talk about corporate welfare and the Jacksonville Economic Development Commission.

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