By ELLEN GEDALIUS
The Tampa Tribune

TAMPA - On the eve of layoffs at city hall, Tampa Mayor Pam Iorio told the City Council today that cuts would be significant and that the city must consider increasing user fees for a variety of services.

Layoffs will be announced Thursday. Iorio offered no specifics today other than to say that every department will be affected. She promises that “street level” public safety employees will be spared.

“It is a very painful process because we are dealing with people’s lives,” Iorio said.

Seniority will be considered, and employees will be given 90 days’ notice of their termination.

Iorio said the layoffs will save the city a “sizeable” amount of money, which is necessary as the city faces the impacts of property tax reform.

The city was expecting about $180 million from property taxes this year. With the changes approved by the state Legislature a few weeks ago, however, the city will get about $158 million from property taxes.

Roughly 80 percent – or $267 million – of the city’s general fund is spent on salaries and benefits.

The mood of city hall Wednesday was somber, as people feared for their jobs. Several council members said they have received emails and phone calls from concerned employees. A union official said he can’t keep up with the phone calls and the rumor mill.

In a rare, informal budget meeting with the city council this morning, Iorio said layoffs were just the first step. The city needs to realize that the impacts of property tax reform will cost the city several millions of dollars each year for years to come. And the situation will worsen if voters in January approve a constitutional amendment approving a super-homestead exemption.

That measure could have about a $13 million impact on the city, said Bonnie Wise, director of revenue and finance.

“We can’t just ignore what’s around the corner in fiscal year 2009,” Wise said.

Iorio said she wants to continue talking to the council about user fees.

“We need to have a discussion about fees in general – all the potential fees in the fire area, all the potential fees in the parks area,” Iorio said.

The city is contemplating significant increases to fees charged by the construction services department. A proposal to allow the fire department to start charging fees for responding to motor vehicle accidents was scrapped this month, partially because the public objected.

The city charges fees for some parks and recreation programs, such as ceramics classes and gym memberships.

“We need to spend more time talking comprehensively about user fees,” Iorio said. “Our first priority is our construction services center. It is our goal to have that be self-sufficient.”

Councilman John Dingfelder told Iorio that the council will do its part to cut costs.

Councilman Joseph Caetano questioned why the city is looking into buying the Trump Tower Tampa property if the condo isn’t built.

“How can we get involved in something like that?” Caetano said.

Councilman Charlie Miranda urged Iorio to be more frugal with the travel budget. Rather than sending several people to conferences, he said, send one.

Iorio also said she has stopped setting money aside for the hurricane emergency reserve fund. The fund has about $7.5 million in it. Iorio’s goal is $15 million.

Reporter Ellen Gedalius can be reached at (813) 259-7679 or egedalius@tampatrib.com.

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