Port Wentworth Reeling from Tax Mistake, Forced to Layoff Staff

(Port Wentworth, GA) It's one thing when you add incorrectly in your personal checking account and then realize you have a lot less money than you thought.  But recently, the city of Port Wentworth found itself with less income and it wasn't due to a mistake on the city's part.

The issue: getting up to $400,000 less in tax revenues and it has led to emergency budget adjustments and the layoffs of six people.  City Administrator Phillip Claxton tells News 3 that it all began in November when the city received less money in its disbursement from the Chatham County Assessor's office.  "It was several hundred thousand dollars," he says.

Several years ago, the IKEA distribution center was listed as being in the confines of Port Wentworth and therefore tax dollars generated by IKEA were anticipated as part of the city's revenues.  However, the assessor's office recently discovered a mistake, i.e. that IKEA is NOT in Port Wentworth, but rather in unincorporated Chatham County.  Accordingly, the assessor's office began withholdng the taxes.

In November, when less money came in from the assessor's office, Claxton says he had to call and ask why.  When told of the mistake about IKEA, Claxton says he had to begin to make adjustments.

Last month, more adjustments became necessary as officials realized the loss to the city of Port Wentworth will come to $438,500.

Claxton told us he had not necessarily planned layoffs but it became apparent that cutting staff would be necessary.  He requested input from city department heads regarding how the work force could be pared down with the least impact to public services.  Claxton says four public works department employees were given notice last Friday, along with two administrative personnel.

Claxton says he will be presenting additional budget adjustments in the coming weeks.  One city department head told News 3 that when they realized the extent of the budget cuts, "saying that we were in shock would be an understatement."

Still, Claxton says the city holds no ill will against the assessor's office for the mistake.  "It has happened and we are dealing with it and will continue to deal with it and do whatever we can to continue our level of important city services," he says. 

Claxton says the city of Port Wentworth may present more information to the public next week at the regular city council meeting next Thursday, January 26.