City Losing Money On Overtime, Water

By ELLEN GEDALIUS The Tampa Tribune

Published: Jun 1, 2007

TAMPA - As the city braces for budget cuts, the city council learned this week that Tampa is spending $7.5 million in overtime, losing about $4 million in the water department and seeing a drop-off in building permit fees.

The council took no action at a recent meeting about the city's finances but listened as the city's finance director explained that the administration is trying to crack down on overtime in particular.

The news wasn't all bleak. The Tampa Convention Center is expected to bring in $8.1 million this year, $2 million more than expected. And the city's interest earnings have been healthy.

But the city has started seeing the results of the slowdown in the housing market, expecting to receive $5.8 million in building permit fees this year compared with $6.7 million last year.

Overtime figures and water department issues caught the council's attention.

"Is the mayor clamping down?" Councilman John Dingfelder asked.

In an interview this week, Mayor Pam Iorio said the city is trying to trim its overtime expenses.

The city spent about $6.6 million in overtime in the 2006 fiscal year but had projected only $3.3 million in spending this year. However, projections show the city could wind up spending $7.5 million in overtime - more than any other year since Iorio took office in 2003.

In three months, the fire department spent $982,693 on overtime - $700,000 over budget.

Iorio said the city has tried to have four firefighters on a truck. To reach that goal, firefighters were being paid overtime. Chief Dennis Jones stopped the practice a few weeks ago, Iorio said.

Other overtime expenses were incurred at city-sponsored special events, where police officers and public works officials are needed. The city plans to sponsor fewer events.

"We've looked at the overtime figures and it's too great, too big of a burden on the budget," Iorio said.

The water department is losing money for the first time since Iorio took office.

Revenue is expected to be about $82.4 million this year, but expenses likely will top $86.4 million. The city is expected to buy $10 million worth of water from Tampa Bay Water this year, substantially more than the $1.5 million budgeted.

The situation will only worsen if the drought continues.

In July, the city council will consider passing the cost of water purchases to consumers.

Also this summer, Iorio plans to ask the council to approve a water rate increase. Her staff members are working on a five-year plan to phase in the rate increase; another option is to impose one big rate increase.

Currently, the city is spending $66,000 a day on water purchases from Tampa Bay Water, which buys about 30 million gallons.

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