02-28-2007, 09:06 PM
From: Martin Black
Date: Wednesday - February 28, 2007 2:16 PM
Subject: Tax Reform and City Impacts (please share with all employees)
I received this email upon my return to the office this afternoon and thought the information would be valuable to share with all employees. The John Patten that Stacy refers to below is the same John Patten who thought the city appreciation gift cards should be stopped. Mr. Patten is spreading a rumor. Here are the facts:
The city will have to examine and choose options to reduce general fund (not enterprise fund) expenses as a result of the tax reform proposals under consideration in Tallahassee. We expect that if the state legislature passes the reforms this legislative session that we will need to reduce the general fund by almost $6 million. These reductions are not aimed at utilities, airport or solid waste since they are funded primarily by user fees.
If we need to reduce our general fund by the $6 million, it will be a necessity to analyze potential layoffs. Other cities and counties across the state have already begun to take these and related actions. This morning department directors were all advised to stop all training requests not already approved unless they are necessary to maintain a state required license and to bring alternatives to reduce our expenses going forward. We are examining canceling several other large expenditures to preserve options for city council. This is on top of the targeted hiring freeze already in place. I am committed to provide city council with an analysis of impacts and alternatives by the end of the next month so that they can make some very difficult policy decisions. The state tax reform changes are coming and we need to continue to prepare for their impacts.
The largest general government expenditures are emergency services (police and fire) and their operations cost more than all of the property tax we currently collect. A reduction of roughly 20 to 35% of the general fund is likely necessary to meet the projected state reduction in revenue and would create some very severe impacts to the general fund employees. Alternatives fall into two basic categories:
1. Raise fees to cover the loss in tax revenues (but that would be contrary to a general perception that we all and the rest of the
public want to pay less taxes); or,
2. Reduce the general fund to enable property owners in the city to realize a net reduction in local taxes (our primary costs are related
to personnel so they become a necessary part of any reduction in expenses).
I spoke with city council at their meeting yesterday at length about these impacts and, while the state legislature has not yet approved them, they have widespread support by the governor and most legislators who ran last year on a platform to reduce taxes. I have asked department directors and representatives from the staff meeting to begin reviewing these impacts so that all employees understand that the news stories about the tax reform in Tallahassee will have real impacts to all of us.
I know that this is not a rosy picture, but it is far from what Mr. Patten may be spreading to meet his own agenda....we don't even have 50 employees at the water plant (there are only 17 authorized positions in all of water production) so that should have been a good indicator to utilities employees regarding the accuracy of Mr. Patten's perspective. He has his own agenda and perspective and employees need to keep that in mind - he serves on the board of a local group whose stated purpose is to reduce the costs of city government and that will translate directly into impacts to employees if that perspective becomes reality through the state tax reform measures.
I encourage all city employees to let your state legislators know that their tax reform measures will impact you and ask them to explain why only cities and counties are being asked to absorb these tax reductions.
Marty Black
City Manager
Serving the City of Venice with PRIDE:
Productive - Responsible - Innovative - Dedicated - Ethical
>>> 02/28/07 11:49 AM >>>
Good morning, Marty.
I just want to let you know that there is a rumor going around here at the Water Plant that is causing the employees to be very uneasy.
Apparently, John Patten made a visit to the Water Plant and he told an operator directly that you, as City Manager, is looking to get rid of 50 employees from the Utilities Dept. There are also some higher ranked officials from OMI taking a tour of the plant which is, under any other circumstances, would be no big deal.
We are going through some changes over here and employees are not sure what else is coming.
Just wanted to inform you of the rumor so maybe you could put it to rest.
Thanks.
Date: Wednesday - February 28, 2007 2:16 PM
Subject: Tax Reform and City Impacts (please share with all employees)
I received this email upon my return to the office this afternoon and thought the information would be valuable to share with all employees. The John Patten that Stacy refers to below is the same John Patten who thought the city appreciation gift cards should be stopped. Mr. Patten is spreading a rumor. Here are the facts:
The city will have to examine and choose options to reduce general fund (not enterprise fund) expenses as a result of the tax reform proposals under consideration in Tallahassee. We expect that if the state legislature passes the reforms this legislative session that we will need to reduce the general fund by almost $6 million. These reductions are not aimed at utilities, airport or solid waste since they are funded primarily by user fees.
If we need to reduce our general fund by the $6 million, it will be a necessity to analyze potential layoffs. Other cities and counties across the state have already begun to take these and related actions. This morning department directors were all advised to stop all training requests not already approved unless they are necessary to maintain a state required license and to bring alternatives to reduce our expenses going forward. We are examining canceling several other large expenditures to preserve options for city council. This is on top of the targeted hiring freeze already in place. I am committed to provide city council with an analysis of impacts and alternatives by the end of the next month so that they can make some very difficult policy decisions. The state tax reform changes are coming and we need to continue to prepare for their impacts.
The largest general government expenditures are emergency services (police and fire) and their operations cost more than all of the property tax we currently collect. A reduction of roughly 20 to 35% of the general fund is likely necessary to meet the projected state reduction in revenue and would create some very severe impacts to the general fund employees. Alternatives fall into two basic categories:
1. Raise fees to cover the loss in tax revenues (but that would be contrary to a general perception that we all and the rest of the
public want to pay less taxes); or,
2. Reduce the general fund to enable property owners in the city to realize a net reduction in local taxes (our primary costs are related
to personnel so they become a necessary part of any reduction in expenses).
I spoke with city council at their meeting yesterday at length about these impacts and, while the state legislature has not yet approved them, they have widespread support by the governor and most legislators who ran last year on a platform to reduce taxes. I have asked department directors and representatives from the staff meeting to begin reviewing these impacts so that all employees understand that the news stories about the tax reform in Tallahassee will have real impacts to all of us.
I know that this is not a rosy picture, but it is far from what Mr. Patten may be spreading to meet his own agenda....we don't even have 50 employees at the water plant (there are only 17 authorized positions in all of water production) so that should have been a good indicator to utilities employees regarding the accuracy of Mr. Patten's perspective. He has his own agenda and perspective and employees need to keep that in mind - he serves on the board of a local group whose stated purpose is to reduce the costs of city government and that will translate directly into impacts to employees if that perspective becomes reality through the state tax reform measures.
I encourage all city employees to let your state legislators know that their tax reform measures will impact you and ask them to explain why only cities and counties are being asked to absorb these tax reductions.
Marty Black
City Manager
Serving the City of Venice with PRIDE:
Productive - Responsible - Innovative - Dedicated - Ethical
>>> 02/28/07 11:49 AM >>>
Good morning, Marty.
I just want to let you know that there is a rumor going around here at the Water Plant that is causing the employees to be very uneasy.
Apparently, John Patten made a visit to the Water Plant and he told an operator directly that you, as City Manager, is looking to get rid of 50 employees from the Utilities Dept. There are also some higher ranked officials from OMI taking a tour of the plant which is, under any other circumstances, would be no big deal.
We are going through some changes over here and employees are not sure what else is coming.
Just wanted to inform you of the rumor so maybe you could put it to rest.
Thanks.