from staff
Mayor John Peyton, a former executive at Gate Petroleum Co., founded by his father, took office July 1, 2003, and was re-elected to a second term, which ends next year. He met with the Daily Record editorial staff on Monday.
The Hillwood deal to develop Cecil Commerce Center is making the news. Will it pass and what are your thoughts on it?
I’m hopeful that it will. The two Council members in whose district this development resides are both supportive of the concept. The JEDC (Jacksonville Economic Development Commission) is supportive of it. I think the fact that we went through a competitive process – everyone had a chance to be a part of this opportunity – is good. The City, I don’t think, is tooled to develop this project over the next 30, 40, 50 years. The analogy I use is Deerwood Park. It took Gate 25 years to develop that park and was successful by every account, but it was 1,000 acres, 25 years. This is double that size, actually 4,000 acres, half of what is developable and it’s going in a down market. We need someone who knows the business, has the relationships and can stick to a plan. The deal when we negotiated with them was that we have no money in the deal. They put in their capital exceeding $250 million over time and make the sites pad ready, which is a really good deal for taxpayers. We do not have capital dollars to make this work on our own. And we don’t have the expertise, quite frankly, either. This is the poster child for what we should privatize.
Tell us about the opposition.
I respect their position and I’ve met with them a lot. Their concern is that they’re going to have a competitor in the marketplace. It’s a competitor they think has a cost advantage on the land. I would argue that yes, they will have a competitor, but we didn’t choose to be in this business. The federal government put us in this business in the 1990s (in closing the former Navy base.) I think we have an obligation ... to be successful in developing it. Truth of the matter is, status quo at Cecil Field is not working.
How’s the budget process coming along?
That’s next up. We are working vigorously to try to defend and balance the budget. We’re on our way. The fact the Council supported the shoring up of enterprise funds tells me we have a shot at balancing the budget, between cutting expenses, cutting pay, trimming down departments. We announced reducing two engine companies and library hours. These are very difficult decisions, but the reality is we have got to bring our expense line down and it’s got to be on the labor line. Eighty-five percent of the growth the next five years is employee-related, primarily pension and health care, and the only way to get that down is to have fewer people. And you can’t just do that in the nonpublic safety sector. You’ve got to do the whole thing. Half our budget goes to public safety and they’ve got to experience the process like everyone else. The challenge we have in this budget environment is this: no matter what you do, it’s going to be uncomfortable and not politically expedient. If you eliminate a service someone enjoys, you’re going to have some really displeased constituents. If you raise revenue, you’re going to have displeased constituents.
When it comes to balancing the City budget, is a property tax increase inevitable?
It won’t exceed revenue neutral. About 48 percent of our revenue is property taxes. We get fees and we get JEA funds and fees for service and revenue-sharing based on sales tax. We have a bevy of sources to rely on, but property taxes are the single biggest source.
Do you think you’ll resolve the pension issue before you leave office?
I think that’s really up to the City Council. We’re at an impasse with most of the unions now. In that environment, it assigns a magistrate and if the magistrate can’t find a common ground, then it goes to Council for a vote.
What about the numbers?
Revenue is growing at about 10 percent a year. Expenses are growing at about 35 percent a year. This gap is what’s creating the problem. This is $80 million (this year). That’s $20 million off pay cuts, $20 million from departmental cuts, $20 from fees and $20 from (millage) roll-up. That takes care of the $80 million and how we’re balancing the budget. The good news is we’ve done the fees. We’re working toward the pay cuts and departmental cuts. We’ve been saying $60 million, because we’re assuming a (millage rate) roll-up. The problem is, when we get to year five, it grows to a $250 million hole. It grows every year and my point is the only way you’re going to get this thing to balance over time is you’re going to bring your expense line down and revenue up. Some people say we should just cut our way into success. To say that we can cut our way into success would basically eliminate “everything else” and leave you with police and fire and debt obligation.
What about those who just want fire, police and roads?
A lot of them are in my party. I can appreciate their desire for government to be smaller, more efficient and more responsible. I am in complete agreement with that and not a day goes by where we don’t try to find a way to improve the process. Right now, we’re going through the process of trying to find those things we can privatize. Where there might be a divergence is I don’t believe we should keep lopping services to pay for pension and health care. I don’t think you can cut your way into success.
With the cuts, will morale be an issue among workers?
I don’t think morale is a big issue in this environment. I think we should all be happy to have jobs. I just don’t buy the morale argument. It’s a nice luxury to have, but the truth of the matter is, we are in somewhat survival mode and it’s no different from every other organization and household.
How have the citizen budget workshops across the city been going?
We have our last one this week at the beach. They’ve been going well. We’ve gotten some really good feedback and if anything, we’ve provided an opportunity for citizens to understand Budgeting 101. The idea this year was to discuss the budget before advocating a plan to address it. I give JCCI (Jacksonville Community Council Inc.) a lot of credit for a very thoughtful study with some very good recommendations on the discussion. What was happening was I was advocating for a budget people didn’t really understand. We created a website, myjaxbudget.com, and created these workshops.
Any comment on Gov. Charlie Crist’s party change?
(long pause) No. I really don’t have any comment. I think he’s all about political convenience these days.
The Florida legislative session recently ended. How would you rank this last session and how do you think the Duval Delegation did in protecting the interests here?
I think two things. You’re in an environment where it’s unreasonable to expect any significant or major investment because of the economy. Our goal is just to limit the damage and avoid any unfunded mandates. I think all in all, we came through this session undamaged. And that is not a given. Just two budgets ago they took out $100 million of revenue by rolling back the millage rate.
How close are you following news of the oil spill in the Gulf of Mexico and what are your thoughts?
I follow it every night. I think it’s terrible what’s happening environmentally and I can’t imagine what those local municipalities are doing economically to deal with what’s happening. I’m very, very sympathetic, especially a community like New Orleans that has already had enough challenges without this. Having said that, I don’t think we should rush to judgment on what we should do about drilling. We need to let cooler heads prevail and discuss long-term policies outside the disaster. There are a lot of difficult decisions here. Drilling is a difficult decision. Absent of that, you’re signing up for more difficult decisions and dependency issues. It’s a complicated issue that involves a thoughtful process.
Do you think you’ll be endorsing anyone in the mayor’s race?
My focus is trying to execute on a very ambitious agenda for these next 14 months. We have a lot of things happening and that is my focus. I pay very little attention to the mayor’s race. There are a lot of good candidates in the mayor’s race, but I think my role will be to advocate the truth and try to make sure political pandering doesn’t lose sight of the facts.
Do you have any advice for the next mayor?
There are two major threats to this government. One is the state Legislature, which keeps passing down unfunded mandates and has demonstrated a willingness to control our millage rate. The other is pensions.
Extraordinary times lie ahead. This city is well positioned in so many ways for a strong recovery. I think the port is well positioned and I think we’re going to see movement on Downtown with some key investments there. Our efforts to try to reduce crime and per capita murder will continue and we’ve seen double-digit decreases. The military presence, which is the closest thing to a recession-proof business, continues to grow here. Our economy is diversified so we don’t have all our eggs in one basket. In terms of fundamentals, we’re in a great position.
My advice would be to keep working to reform. We have a reform package before the unions right now that I think is important but I think that’s one of many steps.
Number two would be to stay on top of our legislators to protect Jacksonville’s interests during the legislative session.
Also, don’t be afraid to invest in our community. This city is worthy of investment. The notion of trying to defund her doesn’t spell success. We have to invest in her just like you have to in business if you want to get a return and remain competitive.
Technology and the avenues of communication have greatly increased since you first took office. Do you pay attention to all of it?
I intentionally do not follow blogs. I don’t think anyone in office should. It’s unhealthy and in many instances the information is not grounded or fact-based.
Twenty years from now and looking back, what do you want your legacy to be?
That’s not my job. You (as a mayor) don’t get to write that.
If you could, though?
I know what we’ve worked and focused on. I don’t know if that’s the legacy, though, we don’t get to pick that. We put a lot of time and energy in early literacy. We have over 53,000 book club members, 4-year-olds that have been a part of this program. We’ve transformed dozens and dozens of day care centers that were underperforming. I’m proud of the work we’ve done on the St. Johns River. The River Accord and river access, the land around it. We’ve done a lot of work for water quality. Stormwater fees are now a dedicated revenue source that directly impacts the health of this river. Jacksonville Journey. I think one of our single biggest challenges is violence. We’ve had this unfortunate distinction of leading in per capita murder for 10 years, but I’m optimistic the investments we’re making in prevention, intervention and prosecution will pay dividends. Downtown is a big push now and we’re working on some ambitious plans. The Courthouse is moving full speed ahead. But who knows beyond that what it’s going to be.
This administration has been inordinately challenged with budget challenges. A lot of our work has been trying to right-size government, reform pension, get pay in line, cut departments where we can, scrutinize spending and also raise revenues. That’s what consumed most of my second term and I think my business background has served me well in this capacity.
What’s it going to take to make Downtown a success?
There are a lot of things we should focus on and we need to use this down market as a time to get organized and to plan to execute when the money becomes available.
We need to focus on walkability and the Laura Street project is a good first start. Laura Street and Bay Street offer the best opportunities for what I call “pockets of success.”
We also need to focus on the public spaces. We will be hard pressed to convince someone to come here and invest capital dollars if the City doesn’t step up and take care of everything around it.
We have to have a conversation about the convention center. What we have today is not successful. It is missing the three key ingredients. You need plenty of exhibition space, you need an entertainment district and you need an adjoining hotel.
Because the Hyatt offers (almost) 1,000 rooms on the river and the land next to it is coming available, we should seriously consider a convention center being in that location. The conventioneer traffic would be great for Bay Street and Laura Street and the Landing.
We need to think carefully about how we program the shipyard property because that land is going to come back into our domain. How we connect Downtown to the Sports Complex is going to be critical to our success.
I also think we’re going to have to subsidize affordable workforce housing initially.
The challenge we have now is we’re in an environment where resources are so limited. The notion of issuing a $300 million dollar bond for a convention center is not in the cards right now, but this is a good time to plan and build community consensus around what we want to do and how we want to do it.
I have enlisted the help of some key business leaders to help foster that and I’ve enlisted the help of the Civic Council. I think that kind of planning needs to be done outside of City Hall.
Are you satisfied with the landfill resolution?
You know, democracy isn’t pretty sometimes. And sometimes it isn’t cheap. I brought a deal forward that I thought was in the best interest of the taxpayers. I think the Council probably landed in the right place, but it was an expensive way to get there.
How has fatherhood (to two young sons) changed you?
It’s changed everything. It’s the most rewarding and gratifying experience I’ve ever had. I love being a father and one of the things I’m looking forward to most is having more time to be good at it.
Especially in these times, how tough is it to balance home and work life?
It’s been easier the second term because I’ve made a point of it. I seldom do evening and weekend events because I don’t want to take away from my wife or the boys. I think I’ve been managing it better.
What do you envision for life after being mayor?
I’m going to Disney World. (laughs).
I came from a family business and I look forward to returning to the family business. Exactly how I will contribute, I don’t know yet.
Do you know what your position will be when you go back to Gate? Is your dad (Herb Peyton) ready to retire?
I’ll let him answer that question. He’s running the company and doing an extraordinary job running it. He loves to work and we’re lucky to have him there, quite frankly.
Would you do it all over again?
I would. It’s been an extraordinary opportunity and I’m very, very thankful. I’d like to believe I’ve been able to contribute in seven years and will always look back on this time of my life very fondly. Not to say that I don’t get frustrated. But it’s been a very meaningful experience.
Would your wife, Kathryn, agree?
Probably not. She has got a countdown clock up and running. I think politics is hard on the spouse. Mayor Jake Godbold once told me, ‘Never tell your spouse what they’re doing to you at work because they’ll never forget.’ It’s the truth. I think spouses do not forget, and that’s a good thing.
Are there any more politics in your future?
I have no desire to run another campaign. I wouldn’t mind in later life serving in an appointed capacity of some sort but my days of campaigning are over. I’m done with that.