Port Richey staff flags $44,271 drop in Penny for Pasco allocation

City Finance Director Adam Thompson told the council that a state change — described in the presentation as the repeal of a 2% business tax component — reduced Port Richey’s anticipated Penny for Pasco allocation for the upcoming fiscal year. Thompson said the city had budgeted $749,001.88 but the estimate was revised to $704,917, a projected drop of $44,271. Thompson explained the county appropriates the penny-for-Pasco funds to cities based on an allocation formula; changes to the taxable base and periodic recalculations can shift amounts among jurisdictions. Council members asked whether population or reapportionment drove the change; staff said the primary effect reported to them was the removal of the 2% business tax element from the calculation, not a local census change. Thompson recommended retaining conservative spending assumptions for Penny for Pasco projects and identified options: slow non‑essential projects, prioritize water/sewer CIP work tied to impact fees, and keep close watch on actual receipts versus estimates. The draft CIP presented at the workshop included proposed draws and targeted year‑end Penny-for-Pasco balances that staff used to frame recommended pace of spending.