Port Richey misses out on planned tax revenue

PORT RICHEY - Lou Clini had reason to be concerned when he sent the county property appraiser a letter inquiring about nearly $124,000 in expected tax revenue for the city.

The money had been put into Port Richey's current budget, with plans for sidewalks, drainage, landscaping and other improvements to the waterfront area, including a floating dock at Nicks Park. The city expected to be paid by Jan. 1.

But by late January, the money still had not arrived. "Please advise me if we need to file a request for these funds and to whom we should notify," wrote Clini, assistant to the city manager.

The county has not sent the check and apparently does not have to because Port Richey did not file required paperwork in time.

While Clini brushed off the loss Tuesday - calling it "money we can do without" - some City Council members expressed displeasure with city staff, and a fair amount of confusion.

"Why didn't somebody figure this out ahead of time? It's real simple," City Council member Bill Bennett said. "Somebody sure fell off the turnip truck somewhere. We're just lucky none of that money was spent ahead of time."

The issue dates to March 2002, when the council approved the creation of a Community Redevelopment Agency.

Used in New Port Richey and other Florida cities, a CRA allows a municipality to keep nearly all of its tax revenue attributed to property growth.

Here's how it works: First a baseline is established, say, $150-million of taxable property in 2001. If the overall value was $170-million in 2002, the difference would be multiplied by the county mill rate.

Ninety-five percent of that amount would be sent back to the city.

In Port Richey's case, the city was expecting $123,928 from the county during this fiscal year. The entire city was included in the redevelopment area, meaning the money could be reinvested anywhere.

The catch is that state law mandates that a new CRA must be in place by Jan. 1 in order for a city to receive money the following year. Port Richey's was not finalized until March 12.

Clini said he was not fully aware of the deadline until after the fact. "Now looking back on it, knowing the dates, it was very close," he said.

Not close enough, though. Now the county gets to keep the money.

When he found out the funds would not be coming, Clini eliminated several items from the budget, the majority of cutbacks coming on waterfront improvements.

He said those items could be put off for at least a year since the city has not begun work on a proposed parking garage. "It's not a big deal."

City Manager Vince Lupo was out of town Tuesday and could not be reached.

Leslie Sykes, the consultant who helped develop the CRA, said city staff were notified of the Jan. 1 requirement but encountered "circumstances beyond their control, primarily scheduling."

The process began in November, leaving a tight timeline for necessary meetings and public hearings, she explained.

"It's going to be a very small loss, if at all," Sykes said. The CRA may start one year later than expected, she added, but it still will be good for 20 years. An analysis showed the city could generate $25-million in that span.

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