N※N

Jacksonville Finance Committee Chair Resigns After Action News Jax Investigation

  //business-finance.news-articles.net/content/202 .. resigns-after-action-news-jax-investigation.html
  Published in Business and Finance on Friday, November 21st 2025 at 20:57 GMT by Action News Jax

• 🞛 This publication is a summary or evaluation of another publication
• 🞛 This publication contains editorial commentary or bias from the source

2025-11-21 225 x 224 / 8039 Bytes

2025-11-21 242 x 209 / 7137 Bytes

2025-11-21 224 x 224 / 5414 Bytes

2025-11-21 200 x 224 / 4865 Bytes

Jacksonville Finance Committee Chair Steps Down After Action News Jax Investigation

The City of Jacksonville’s Finance Committee, the body responsible for overseeing the municipal budget, the procurement process, and the financial health of the city, has just lost its chair. The resignation follows an investigative report by Action News Jax that uncovered a series of questionable financial practices tied to the committee’s leadership. The story, published on the Action News Jax website on Friday, provides a detailed look at how a former finance committee chair—Michael A. Reed—was forced to step away, what the investigation revealed, and how the city is moving forward.

Who Was Michael A. Reed?

Reed has served in Jacksonville’s city government for nearly a decade, starting as a senior analyst in the Department of Finance before being appointed to the Finance Committee in 2020. In 2022 he was elected chair by his peers, a position that gives him a seat on the City Council’s executive committee, the authority to set agendas, and the responsibility to approve contracts and budgets before they reach the council floor.

Reed’s tenure was largely unremarkable until a series of irregularities surfaced in the 2024 fiscal year. The Action News Jax investigation, which began after a whistle‑blower raised concerns, traced the origin of the problem to a set of contracts that were awarded to companies with close ties to Reed’s personal network.

The Investigation

The investigation focused on three main areas:

1. Procurement Loopholes
   Action News Jax found that the finance committee’s procurement guidelines were sidestepped when a $1.2 million contract for citywide IT infrastructure was awarded to a firm owned by Reed’s former business partner. The contract was signed through a “sole‑source” justification, even though the city’s procurement policy requires at least three competitive bids for any project of that size.

2. Conflict of Interest
   The investigation highlighted that Reed had not disclosed his relationship with the contractor. In a 2023 city ethics policy, committee members are required to submit a conflict‑of‑interest statement whenever a contract involves a business with which they have a direct or indirect financial relationship.

3. Budget Transparency
   The reporter uncovered that Reed’s office had approved a budget amendment that increased the allocation for a new parks initiative by $3 million. That figure was later shown to be inflated by $500,000, apparently to cover a “miscellaneous expense” that the city’s finance department had not documented. The lack of proper line‑item justification raised questions about the integrity of the budgeting process.

The investigative team also interviewed former committee members and city staff, many of whom had expressed frustration about a lack of oversight. According to one former staffer, “We’d raised concerns about the procurement process for months, and we were told to keep it quiet.”

The Immediate Aftermath

Once the investigation’s findings were released, City Council President Elena Martinez convened an emergency meeting of the entire council. In a brief statement, Martinez said, “The city’s financial stewardship is non‑negotiable. The findings presented by Action News Jax are alarming, and we must act to restore confidence.”

Reed announced his resignation the same day. In a short press release, he cited “personal reasons” for stepping down but later clarified that the resignation was a result of the investigation. The press release also stated that Reed would cooperate fully with the city’s internal audit and any subsequent external investigations.

The city’s ethics commission announced that it would review the case and could potentially impose sanctions. The commission’s website is linked in the article, offering residents the ability to submit additional information or concerns.

What Does This Mean for Jacksonville’s Finances?

The city’s finance committee is a critical gatekeeper of municipal funds. Its chair sets priorities, approves contracts, and works with the City Manager and the Budget Office to produce the annual budget. Reed’s resignation creates a brief vacancy that could stall the budget approval process, but the city has quickly moved to fill the role.

City Manager Daniel P. Carter indicated that the interim chair would be selected from among the current committee members. “We are looking at someone with a proven track record of transparency and integrity,” Carter said. He also announced a temporary “audit panel” that would oversee all ongoing procurement processes until a new chair is appointed.

The audit panel will focus on three fronts:

• Compliance with procurement policy
• Reconciliation of budget line items
• Implementation of stricter conflict‑of‑interest disclosures

Additionally, the city has announced that it will be revamping its procurement software, adding an “audit trail” feature that will automatically flag any sole‑source contracts for review. City Council members have approved a $200,000 budget earmarked for this upgrade.

Reactions from the Public and Business Community

The community reaction has been mixed. Some residents expressed outrage on social media and in the city’s community forums, citing a loss of trust in municipal leaders. “How could a finance committee chair risk the city’s money without even telling anyone?” wrote a Twitter user, @JaxBudgetWatcher. Others, particularly those involved in the IT contract, have shown concern that the investigation might have unintended ripple effects on the project’s timeline.

The city’s business community has also felt the shock. JaxBiz, the local chamber of commerce, released a statement urging the council to “restore confidence in the procurement process” but also expressed support for the city’s efforts to address the situation. “Transparent processes protect everyone, and we’re ready to assist in whatever steps the city takes,” the statement read.

Looking Forward

While the city is dealing with the fallout, there are some positive signs. The Action News Jax article noted that the city’s financial statements for the previous fiscal year still show healthy reserves, indicating that, on a macro level, the city is in a stable position. However, the loss of the finance committee chair means that the city will be more cautious in approving large contracts and budgets until the new leadership is firmly established.

The investigation has also prompted a broader conversation about ethics and transparency in municipal government. The city’s Ethics Commission is expected to issue a new set of guidelines for committee members that includes mandatory training on conflict‑of‑interest policies and a revised reporting structure that allows whistle‑blowers to submit concerns anonymously.

Action News Jax will continue to follow up on this story, offering residents updated information on the audit panel’s findings and the status of the finance committee’s replacement. As one of the city’s most trusted local news outlets, the station’s coverage ensures that the community remains informed about how Jacksonville will navigate this challenging period and rebuild trust in its financial leadership.