“Adding this referendum to the ballot is a big step as we seek to resolve for good an issue that has long plagued our city,” said Mayor Curry. “With City Council’s approval, Jacksonville citizens can support our efforts to close the pension plans that caused this problem so it doesn’t happen again and permit us to use a current source of revenue to meet our obligations.”
 
The legislation includes referendum language that requests voters to adopt the following which reads:
 
“Permanently closing up to three of the City’s underfunded defined benefit retirement plans, increasing the employee contribution for those plans to a minimum of 10 percent, and ending the Better Jacksonville half-cent sales tax are all required to adopt a half-cent sales tax solely dedicated to reducing the City’s unfunded pension liability. Shall such pension liability sales tax, which ends upon elimination of the unfunded pension liability or in 30 years maximum, be adopted?”
 
Once adopted and collective bargaining is completed, the City of Jacksonville will file an implementing ordinance for City Council to approve the collective bargaining agreement and details about the discretionary sales surtax dedicated to only paying unfunded pension liability.
 
Jacksonville currently owns 25 percent of the total unfunded pension liability of more than 400 cities and counties throughout the state, paying more than $260 million for its three public pension funds. The City contribution to the three pension funds is about 25 percent of the City’s operating budget. The Police & Fire Pension Fund is currently at a 46 percent funded level with an unfunded liability of over $1.6 billion; the General Employees Pension Fund is at a 60 percent funded level with an unfunded liability of approximately $910 million; and the Corrections Officers’ Pension Fund is at a 48 percent funded level with an unfunded liability of over $120 million. The total of the unfunded liabilities of the three public pension funds is more than $2.6 billion.
 
With support from bill sponsors Senators Rob Bradley and Aaron Bean and their House partners, Representatives Travis Cummings and Lake Ray, state legislation provides municipal governments with the ability to extend existing surtax revenue to address pension liability under circumstances that demonstrate a serious potential for financial difficulty. Approval by the Florida House of Representatives was secured Feb. 24, and by the Senate March 9. Governor Scott signed the bill March 25.