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Tax cut could mean layoffs, official says

Port Richey's city manager says a lower millage rate could result in decreased wages and benefits for city workers.

By CAMILLE C. SPENCER
Published July 27, 2006

PORT RICHEY - City Manager Jerry Calhoun warned city officials of impending layoffs Tuesday if he is forced to implement a lower proposed budget.

Calhoun had proposed a budget without any staff cuts. But Calhoun said Mayor Mark Abbott's push for a lower tax rate could result in layoffs or salary cuts.

Until last week, the city's $12.4-million budget assumed the millage rate would decrease from 5.82 to 4.7 mills. A mill is equal to $1 of tax for each $1,000 of taxable property.

Abbott told Calhoun he'd like the millage rate to be even lower, at 4.32 mills. Calhoun advised city officials that doing so could result in decreased wages and benefits for city employees.

The council told Calhoun last week to make 10 percent cuts in each of the city's 10 departments.

"A 10 percent cut won't be a pretty picture," Calhoun said. "I tried to caution council the other night that you're affecting salaries. I'm going to bring you 10 percent because that's what you asked me to do, but not without massive layoffs."

Calhoun was unable Wednesday to elaborate on how many layoffs or salary cuts the city's departments would face if the 4.32 mill budget is implemented.

Still, the City Council approved the city's tentative millage rate at 4.7 mills, which means the final millage rate can't exceed that number.

The city's next budget workshop will be held at 6 p.m. Aug. 8.

City Council also debated the number of units a developer can build at a condominium development on Bay Boulevard.

The development, Snug Cove, was approved in 1986 for 141 units after a preliminary site plan. Then-developer J.O. Stone paid $135,000 in transportation and sewer impact fees for the development.

The property sat for 20 years until developer Doug Markham decided to build condominiums on the land in June.

That's when City Council approved a preliminary site plan for a maximum of 85 units, with the stipulation that Markham could seek a density transfer, which allows him to take units that could have been built on another piece of property and build them on Snug Cove instead.

At issue is how many units Markham can build, 85 or 141.

Markham's lawyer, Steve Booth, sent a letter to city officials July 11 threatening a lawsuit if the issue remained unresolved. Booth's letter says Markham has lost $1.7-million in damages.

"You passed an ordinance in 1986 that gave us 141 units," Booth said Tuesday. "My client feels he has been wronged."

Council member Phyllis Grae told Booth that without a density transfer, "All you have is a piece of property. You don't have (the state Department of Environmental Protection), no regulatory agency at all."

Booth told Grae he simply wanted to determine what Markham can build.

"The issue is, do we want to work out something between those (unit) numbers," Booth said. "I'd prefer not to stand at the podium and play let's make a deal."

A handful of residents whose homes are near the proposed development also voiced opinions during the meeting.

"Nobody is trying to take away the rights of a builder, but we certainly don't want to look at the monstrosity on the drawing board that I saw," said Al Foley, a Carolyn Drive resident of 19 years. "I'd rather see townhouses or private homes."

After an hour and a half of discussion, City Council unanimously voted to make a final decision on the issue at the next regular meeting at 7:30 p.m. Aug. 8.

[Last modified July 26, 2006, 22:32:20]