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Layoffs not in plans for Tarpon

The city manager says the shortfall can be made up with a hiring freeze and hurricane recovery funds.

By ELENA LESLEY
Published July 3, 2007

TARPON SPRINGS - This North Pinellas city was among the first to react when state lawmakers said they wanted to roll back property taxes: Its commission sent the city manager to Tallahassee to lobby for much of the regular session.

But weeks after the Legislature finally acted in last month's special session to force local governments to reduce their millage rates, Tarpon Springs' leaders have been far slower to say exactly how they'll deal with the tax cut - expected to cost the city around $400, 500 in 2007-08.

St. Petersburg and Tampa have already announced layoffs and Clearwater's city manager has issued a proposed budget for next year. But Tarpon officials aren't expected to publicly discuss any cuts until late July, a little more than two months before the new fiscal year starts Oct. 1.

Tarpon officials said that's because they won't know exactly how much they have to cut from the city's roughly $20-million operating budget until they're notified July 13 by the state Department of Revenue.

Under the new law, the city must roll back its tax collections roughly 5 percent from the current year, which would reduce property tax collections from about $8-million to about $7.6-million.

And unlike St. Petersburg and Tampa, City Manager Ellen Posivach said she anticipates avoiding layoffs and thinks the city can make up the shortfall through revenues from positions that were already frozen, as well as dipping into funds set aside for hurricane recovery efforts..

Luckily, Tarpon officials said they weren't counting on that money.

"We've had a tight budget, " said Mayor Beverley Billiris. "That will make this easier for us than for other cities."

With adjustments for increases in property values, the city could have actually collected around $8.7-million for 2007-08 - roughly $1.1-million less than it can now collect under the new law.

But city officials warn deeper cuts are inevitable if voters in January approve a ballot measure to greatly expand homestead exemptions for most Florida homeowners. The so-called super homestead ballot measure would strip an additional $16-billion from local governments' coffers.

"I'm extremely satisfied with the rollback, " said Posivach. "It's fair and reasonable." The super homestead exemption is another matter, she said.

Billiris agreed. "When all is said and done, I don't think people are going to be that happy with the outcome."

Elena Lesley can be reached at elesley@sptimes.com or 727 445-4167.

[Last modified July 3, 2007, 00:39:09]