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An accountant urges Port Richey to disband the Police Department and seek a line of credit, but the city manager says it's not that bad.
By MATTHEW WAITE, Times Staff Writer
© St. Petersburg Times, published August 27, 2002
PORT RICHEY -- Port Richey's financial health is so bad that the City Council should establish a line of credit to ensure bills are paid and get rid of the Police Department, the assistant to the city manager wrote to council members last week.
Lou Clini, the city's fiscal adviser, wrote on Thursday that without any action, the city could face a $641,000 shortfall in the next four months.
"Absolute, worst-case scenario," City Manager Vince Lupo said Monday. "That's not where we're at, nowhere near it."
Lupo pointed out that Clini's numbers don't include a proposed utility rate increase, which would raise more than $200,000. Also not included is the $680,000 from the approved sale of the city's land near Wal-Mart.
"Louie is an extremely conservative accountant," Lupo said.
Although he said he hadn't seen the memo, Lupo said many of the shortfalls already have been dealt with.
Spending has been frozen in all city departments -- which is common near the end of budget years -- to help this year's budget balance. For the next fiscal year, which begins Oct. 1, Lupo said the city would not spend the money for projects it can't afford.
Still, Clini warned that the city's "cash position is troublesome and there doesn't look like there is any relief in sight."
Clini proposed three steps to "put our fiscal house in order."
Designate the $680,000 the city will receive from selling its property near Wal-Mart as "unrestricted reserves." The city has no such reserve now.
Establish a $500,000 line of credit to allow the city to pay bills through November, when tax revenues will flow in. Lupo had asked the city for a line of credit last year, explaining that although bills were constant, tax funds coming to the city weren't. The council rejected the effort.
Immediately disband the Police Department and contract with the Sheriff's Office. That would lower the city's law enforcement cost in the budget for next fiscal year from $1.2-million to $507,000, the cost sheriff's officials have given to the city as a preliminary cost for services.
Sheriff Bob White said Monday that the $507,000 preliminary number isn't set in a contract, and he has had only one meeting with the city to discuss it.
If the city was to contract with the Sheriff's Office, a lot of details would have to be worked out.
"We don't know enough yet," White said. "We don't know what they want."
However, White said once the negotiations were done, it would be relatively easy to shift law enforcement duties from the city to the county.
Clini's memo only adds fuel to tonight's council meeting, where the elimination of the Police Department will get its first public hearing.
Among those attending will be Sidney Freedman, the head of a group that started the debate over policing the city. Freedman and a group of citizens put together a proposal that promised $700,000 in annual savings for city residents.
According to Clini, that number is essentially true. If the Police Department is eliminated, Clini predicted, the council could reduce property taxes by 1 to 11/2 mills in 2003-04.
Freedman said Clini's memo only confirmed what he believes about eliminating the Police Department.
"It makes sense."
-- Matthew Waite covers the city of Port Richey. He can be reached in west Pasco at 869-6247 or toll free at 1-800- 333-7505, ext. 6247. His e-mail address is waite@sptimes.com.