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Police, fire layoffs are a possibility
Up to 60 city workers may face ax if state cuts $2 million from budget
By THOMAS MICHALSKI
Article published on Friday, April 13, 2007 |
PINELLAS PARK – The city faces the possibility of having to furlough up to 60 police, fire and other workers if the state legislature forces local municipalities to cut spending in order to reduce property taxes.
Further, the city will probably boost the cost of permits, licenses and other fees to make up lost revenue should Tallahassee lawmakers force a rollback of property taxes. Implementing some proposed budget cuts could mean between $2 million and $5 million or more in lost revenues.
Michael Gustafson, city manager, already phased in a “soft hiring freeze” that means all but key positions will be left unfilled until the legislature acts on the property tax issue.
Dan Katsiyiannis, city management and budget administrator, said labor costs for salaries and benefits are about 82 percent of general fund expenditures. He said a $2 million pruning would mean 60 layoffs based on 600 employees earning an average of about $38,000 each.
Katsiyiannis said no final decisions on layoffs or other plans have been made nor have any formal meetings been held on furloughing employees.
“I cannot say it will not happen,” Katsiyiannis said of the possible layoffs. “Something definitely will happen if we lose between 10 and 20 percent of our property tax revenues.”
Katsiyiannis said fire and EMS services stand to be affected most since part of their funding comes from the state. A special tax finances services for the High Point area of Pinellas County that is served by Pinellas Park. Local property taxes pay for EMS services, but that money first goes to Pinellas County that in turn writes a check to the city.
The city’s millage rate of 4.9788 per $1,000 of net tax value is among the lowest in the county. Last September the City Council voted to reduce it from just over 5 percent as a way of providing some relief for homeowners already facing record property taxes and insurance costs.
Katsiyiannis said even using the Pinellas County Sheriff’s Office for part of the city’s police protection would be difficult to get by local lawmakers.
“Contracting police services requires a charter change and a unanimous vote and I don’t think that would ever happen,” Katsiyiannis said.
He also cautioned that there are operating expenses that cannot be reduced. He cited utility, insurance and supply costs among them.
Katsiyiannis said there are alternatives to layoffs such as increasing fees that allow nonresidents to use city recreational services. The fee structure for occupational licenses and permits would also come under the microscope.
All this comes at a time when the city is in negotiations with employee unions for a new three-year pact. AFSCME, or the American Federation of State, County and Municipal Employees, two police unions and a fire union are recognized as bargaining agents.
John Moore, human resources director and lead negotiator for the city, said the current contracts expire on Sept. 30. He said talks have just begun and that it is too early to predict the outcome.
“The city and union always enjoyed a good relationship,” Moore said. “There is no reason to believe that that will change.”
The Legislature, meanwhile, is expected to hammer out a proposal to lower taxes by late spring or early summer. Plans range from rolling back taxes to levels of the early 2000s to increasing the state sales tax to spread the costs of paying for municipal services.
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Article published on Friday, April 13, 2007
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