Jacksonville Mayor Alvin Brown is proposing using JEA funds to help pay off the city’s pension obligation.Brown is suggesting the city-owned utility pay $40 million a year.
Under the proposal, JEA would continue to pay the $40 million per year until the Police and Fire Pension Fund reaches 80 percent funding status.
Brown says his plan would save $2.75 billion dollars over 35 years.
JEA has yet to sign off on the deal, but Brown says pension reform is also important to the utility.
“They have an opportunity to really look at how the control their pension so that might be an option," he said.
"The other thing is JEA is important because we want to have a great quality of life in our city. We want to continue to attract companies to expand here and grow jobs here. (The) more companies that are expanding, more people working is important for JEA, they have more customers."
Other aspects of the mayor’s proposal include increasing the current employee contribution from seven to eight percent now and later to ten-percent.
Cost of living allowances would be capped at one-and-a-half percent and be tied to Social Security COLA.
The proposal needs the approval of the city council, the police and fire unions and the Police and Fire Pension Board. The City Council rejected a proposal from the mayor last year.
You can follow Kevin Meerschaert on Twitter @KMeerschaertJax.
