03-07-2008, 02:13 PM
Layoffs rejected as way to cut operating costs
By THOMAS MICHALSKI
Article published on Thursday, March 6, 2008
PINELLAS PARK – City officials are looking at innovative ways to cut operating expenses without reducing vital services or having to lay off employees.
Michael Gustafson, city manager, said the city will lose about $1.5 million in tax revenue because of state tax reform and another $500,000 due to reduced property values.
“We work as a team and a family to come up with ideas on how to reduce costs,” Gustafson said at a recent department head meeting. “We are going to try and balance the budget without making additional employee reductions.”
No one actually has been furloughed under the city’s austerity program, but 22 positions left vacant by retirements and resignations have not been filled. Between that and other reductions that have been implemented, the city saved about $1.76 million.
Gustafson said city officials began eyeing ways to save money when tax reform at the state level began taking shape. Some of the potential reductions will be in the parks and recreation department and the police department where such programs as DARE, crime prevention, the citizens volunteer police and the police explorers may face cutbacks or even elimination.
The fire department faces reductions in several non-vital areas and all city officials could eventually lose reimbursement for tuition.
“Nothing has been approved and the City Council has the final say,” Gustafson said. “These are just things we are looking at as a way to save money.”
The city seeks to slice another $1 million from operating expenses, but that may not be easy because of union-mandated employee raises and skyrocketing costs for such things as insurance and fuel.
Dan Katsiyiannis, city budget director, admitted that employee layoffs were considered but rejected in favor of saving money through attrition. He said the city has about $9.2 million in reserves that could be used to help overcome deficits.
The police department’s $12.6 million budget and the fire department’s $10.8 million are among the largest expenditures. Katsiyiannis said three paramedic and a fire inspector position have not been filled. There also are three patrol positions that remain open.
Fire costs are partially supplemented by Pinellas County for services in non-city boundary areas. There are fears that reductions are in store at the county level and that transfers to reductions in what the county will pay the city for services. That decision is expected in between 30 and 60 days.
Katsiyiannis said there are no plans to close firehouses though manpower reductions may occur due to attrition.
There also are reports that Pinellas County’s local police forces may combine certain services such as drug investigations and SWAT teams. There also is talk of the Pinellas County Sheriff’s Office taking over some municipal responsibilities, but nothing official is on the table.
Farming out work to other cities or vendors has worked elsewhere. City maintenance crews, for example, used to handle the cleaning of municipal buildings. That work is now accomplished more economically by private contractors. Pinellas Park, too, contracts some of its manpower to other cities for a fee. Kenneth City is one of them.
“A lot of things that are being discussed likely will not happen,” Katsiyiannis said. “But some of it probably will.”
Florida’s governments at all levels are looking to save money by expanding employee responsibilities through multi-tasking. Cities are not only facing decreased revenues, but increasing fuel, insurance and other costs.
John Moore, human resources director, said the current wisdom is not to lay off employees and work with what the city has in the way of workers and services.
“We consider ourselves as one big family,” Moore said. “We care for our people.”
By THOMAS MICHALSKI
Article published on Thursday, March 6, 2008
PINELLAS PARK – City officials are looking at innovative ways to cut operating expenses without reducing vital services or having to lay off employees.
Michael Gustafson, city manager, said the city will lose about $1.5 million in tax revenue because of state tax reform and another $500,000 due to reduced property values.
“We work as a team and a family to come up with ideas on how to reduce costs,” Gustafson said at a recent department head meeting. “We are going to try and balance the budget without making additional employee reductions.”
No one actually has been furloughed under the city’s austerity program, but 22 positions left vacant by retirements and resignations have not been filled. Between that and other reductions that have been implemented, the city saved about $1.76 million.
Gustafson said city officials began eyeing ways to save money when tax reform at the state level began taking shape. Some of the potential reductions will be in the parks and recreation department and the police department where such programs as DARE, crime prevention, the citizens volunteer police and the police explorers may face cutbacks or even elimination.
The fire department faces reductions in several non-vital areas and all city officials could eventually lose reimbursement for tuition.
“Nothing has been approved and the City Council has the final say,” Gustafson said. “These are just things we are looking at as a way to save money.”
The city seeks to slice another $1 million from operating expenses, but that may not be easy because of union-mandated employee raises and skyrocketing costs for such things as insurance and fuel.
Dan Katsiyiannis, city budget director, admitted that employee layoffs were considered but rejected in favor of saving money through attrition. He said the city has about $9.2 million in reserves that could be used to help overcome deficits.
The police department’s $12.6 million budget and the fire department’s $10.8 million are among the largest expenditures. Katsiyiannis said three paramedic and a fire inspector position have not been filled. There also are three patrol positions that remain open.
Fire costs are partially supplemented by Pinellas County for services in non-city boundary areas. There are fears that reductions are in store at the county level and that transfers to reductions in what the county will pay the city for services. That decision is expected in between 30 and 60 days.
Katsiyiannis said there are no plans to close firehouses though manpower reductions may occur due to attrition.
There also are reports that Pinellas County’s local police forces may combine certain services such as drug investigations and SWAT teams. There also is talk of the Pinellas County Sheriff’s Office taking over some municipal responsibilities, but nothing official is on the table.
Farming out work to other cities or vendors has worked elsewhere. City maintenance crews, for example, used to handle the cleaning of municipal buildings. That work is now accomplished more economically by private contractors. Pinellas Park, too, contracts some of its manpower to other cities for a fee. Kenneth City is one of them.
“A lot of things that are being discussed likely will not happen,” Katsiyiannis said. “But some of it probably will.”
Florida’s governments at all levels are looking to save money by expanding employee responsibilities through multi-tasking. Cities are not only facing decreased revenues, but increasing fuel, insurance and other costs.
John Moore, human resources director, said the current wisdom is not to lay off employees and work with what the city has in the way of workers and services.
“We consider ourselves as one big family,” Moore said. “We care for our people.”