Daily Record FINANCIAL NEWS &
FRIDAY, DECEMBER 2, 2016
Vol. 104, No. 014 • oNe SectioN
35¢ www.jaxdailyrecord.com
A $44 million pension problem Curry, actuary at odds over increase to what city owes
By David Chapman Staff Writer
The city has a $44 million pension problem on its hands, one that’s left elected officials angered and the Police and Fire Pension Fund on the defensive yet again. It’s a problem that apparently has been years coming, which has city leaders scrambling for answers along with accusations of lies to city officials. And the fund says the city treasurer knew about the possible increase almost a year ago. Mayor Lenny Curry in recent
weeks learned of the potential increase the city could be on the hook for in the coming year. A $44 million increase to the public safety retirement plan would make the city’s obligation close to $203 million for fiscal 2017-18. Curry this week said it would force a realignment of priorities to cover that amount. City Council President Lori Boyer is just as frustrated with the specter of such a bill, considering she questioned the reason for the increase in mid-2014. “It certainly takes the wind out of our sails in terms of upward
trends,” said Boyer. “Any gains in revenue would be eaten.” What it boils down to is a tweak in numbers used by the Police and Fire Pension Fund’s long-time actuary, Jarmon Welch. An actuarial report Welch provided in late October makes clear the city might be on the hook for the additional $44 million. He indicates it comes from a variety of factors, including the swapping of mortality tables that fall under state retirement system guidelines. The biggest increase, about $25 million, comes from a relatively
large decrease in the expected payroll growth percentage. The less city payroll grows, the more the city has to contribute to make up for deficits. Welch in prior years had used an expected growth of 3.25 percent. For the draft report it was lowered from 2.5 percent to 0.067 percent, which caused the expected spike. He maintains in past years he’s been able to secure a waiver from the state to use the higher assumption, which meant lower payments. PENSION CONTINUED ON PAGE 4
Curry
Appellate court won’t reconsider Mathis case
State wanted rehearing on reversal of convictions
Combining couple’s two loves at Landing
Photo by Max Marbut
By Marilyn Young, Editor
Elonya and Adrian Pickett at AP Studios and New2U Booknuk at the Jacksonville Landing. The couple leased a space at the Landing to accommodate his artwork and her book collection. Read about the store on Page 2.
Hardee’s remodeling all of its restaurants As other restaurants launch major remodeling projects to appeal to millennials and other customers, Hardee’s also is planning to upgrade its approximately 25 locations in Northeast Florida and Southeast Georgia. The city is reviewing a permit for the first, which is a $150,000 upgrade to the River City Marketplace Hardee’s at 675 Nautica Drive. If all are remodeled at $150,000, the renovation costs would add up to $3.75 million. The 3,472-square-foot Nautica Drive restaurant was built in 2007 and is owned by Ramco Jacksonville LLC, developer of River City Marketplace.
Public
Plans show the outside awnings and signage will be modified. Inside, lighting and other space will be remodeled. Hardee’s Restaurants LLC is based in St. Louis, Mo. It is a subsidiary of CKE Restaurants Holdings Inc., a privately held company headquartered in Carpinteria, Calif. CKE also owns Carl’s Jr. Restaurants LLC. Carl’s Jr. and MATHIS CONTINUED ON PAGE 2
legal NoticeS begiN oN Page
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Kelly Mathis said he can see the daylight. The daylight for when he will be able to practice law again. The 5th District Court of Appeal rejected a request Thursday by the Florida Attorney General’s Office for a rehearing on the court’s decision to throw out 103 gamblingrelated convictions against Mathis and that he receive a new trial. Mathis’ defense attorney Mitch Stone said the state can seek a review of the appellate court’s decision from the Florida Supreme Court. Absent that, the case returns to the trial court in Seminole County on Dec. 19. Prosecutors would have a designated period — which Stone believes is 90 days on an appeal — to retry Mathis unless there’s a waiver of speedy trial. It’s too early to tell whether the defense would request that waiver, but Stone said, “We haven’t waived up to this point.” It’s also unknown whether prosecutors will pursue a second trial against Mathis. Kylie Mason, a spokeswoman for the Attorney General’s Office, said the Office of Statewide Prosecution is in the process of determining its next course of action. Mathis said he was surprised at how quickly the appellate court ruled on the request for a rehearing. The decision was released just over three weeks after the defense filed its response. Mathis was one of 57 people arrested in the 2013 Allied Veterans of the World investigation, in which prosecutors said the charity operated an illegal gambling operation through dozens of internet cafes. None of the other defendants went to trial, with most of them reaching plea agreements and others having charges dropped. Mathis was never interested in a plea agreement in the case. Prosecutors called Mathis the “mastermind” of the operation, saying at trial he knowingly provided false legal advice about the internet cafes. He was convicted on one count of racketeering and 51 counts each of conducting
The proposed interior of the Hardee’s being remodeled.
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