PLACEMENT: Public Hearings
TITLE:
title
PUBLIC HEARING TO CONSIDER A FIRE PROTECTION ASSESSMENT ORDINANCE AND AN INITIAL ASSESSMENT RESOLUTION RELATING TO THE IMPOSITION OF FIRE PROTECTION ASSESSMENTS TO FUND THE PROVISION OF FIRE PROTECTION SERVICES
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EXECUTIVE SUMMARY:
executive summary
The Board of County Commissioners will conduct a public hearing to consider an Ordinance establishing the procedures for imposition and collection of annual fire protection special assessments for the provision of fire protection services within the boundaries of the Martin County Municipal Service Benefit Unit for Fire Protection Services, which is proposed to include the entire unincorporated area of the County and the municipalities of Ocean Breeze and Indiantown. Thereafter, the Board will consider adoption of the Initial Assessment Resolution. The Initial Assessment Resolution is the first step for imposition of Fire Protection Assessments for the Fiscal Year beginning October 1, 2018. The Initial Assessment Resolution establishes the preliminary rates and other terms and conditions for the proposed Fire Protection Assessments. It sets a final public hearing on September 11, 2018 for the Board’s final decision on the Fire Protection Assessments.
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DEPARTMENT: Fire Rescue
PREPARED BY: Name: Matt Resch
Title: Fire Rescue Administrator
REQUESTED BY: Board of County Commissioners
PRESET:
PROCEDURES: None
BACKGROUND/RELATED STRATEGIC GOAL:
On July 10, 2018 the Board heard a presentation on the methodology for a fire protection assessment to fund the fire related costs of the operating and capital improvement budgets. The Board accepted the methodology and directed staff to prepare the necessary ordinance and resolution to implement the full cost budget proposal at the 50% rate level to include a hardship program, and a buy down policy that will exempt government, institutional tax exempt, and agricultural parcels as presented in the presentation.
Pursuant to that direction, the Board of County Commissioners will conduct a public hearing to consider the approval of an ordinance establishing the procedures for imposition and collection of annual fire protection special assessments for the provision of fire protection services Additionally, the Board will consider adoption of the Initial Assessment Resolution. The Initial Assessment Resolution is the first step for imposition of Fire Protection Assessments for the Fiscal Year beginning October 1, 2018. The Initial Assessment Resolution establishes the preliminary rates and other terms and conditions for the proposed Fire Protection Assessments, including the apportionment methodology that was preliminarily accepted by the Board on July 10, 2018. The Initial Assessment Resolution creates the Martin County Municipal Service Benefit Unit for Fire Protection Services, which is proposed to include the entire unincorporated area of the County and the municipalities of Ocean Breeze and Indiantown, and sets a final public hearing on September 11, 2018 for the Board’s final decision on the Fire Protection Assessments. As directed by the Board, the proposed Initial Assessment Resolution contains a hardship assistance program and a buy-down policy that will exempt government, institutional tax exempt, and certain agricultural properties from the assessment. The Initial Assessment Resolution contains the following proposed rates, which will be included in the statutorily required mailed and published notices:
Residential Property Use Categories Full Costs
Rate Per Dwelling Unit
Residential $151
Non-Residential Property Use Categories Full Costs
Rate Per Square Foot
Commercial $0.32
Industrial/Warehouse $0.05
Institutional $0.24
These rates will be the maximum rates that can be imposed in the Fiscal Year beginning October 1, 2018 and future fiscal years without additional notice. As set forth in the Initial Assessment Resolution, the non-ad valorem special assessment would help to fund the cost of providing: fire protection services, capital improvements and the fixed asset replacement/refurbishment budget (FARB).
ISSUES:
The County has an abundant list of deferred maintenance challenges countywide and considering a non-ad valorem assessment will serve as an alternative revenue source to benefit those needs specific to Fire Rescue and continue to provide a dedicated funding mechanism for fire protection. The Fire Rescue Department is primarily funded by ad valorem for services provided countywide through the General Fund, and Fire/EMS operations through the Fire Rescue MSTU. Secondary funding sources include revenue generated by transport fees, and Federal and State grant awards.
There are challenges associated with using ad valorem as a primary source for funding services. First, funding is less predictable and less stable since it is dependent on assessed property values which may vary. Second, if the Florida Amendment 1 Homestead Exemption Increase passes in November, staff anticipates a decrease of $2,000,000 in ad valorem funding from the Fire Rescue MSTU. This loss in revenue would have a substantial negative impact on the Fire Rescue MSTU operating budget that totals $2,450,000. The addition of the MSBU for Fire Protection Services will help further diversify the funding sources for Fire Rescue Operations and provide stability to the budget.
LEGAL SUFFICIENCY REVIEW:
The firm of Nabors, Giblin & Nickerson, P.A., the County’s Special Assessment Counsel, has reviewed the agenda item summary, ordinance, and initial assessment resolution and confirmed that the form of each is proper.
RECOMMENDED ACTION:
RECOMMENDATION
1. Move that the Board adopt the proposed Ordinance.
2. Move that the Board approve the initial assessment resolution to create the Fire Protection Municipal Service Benefit Unit.
ALTERNATIVE RECOMMENDATIONS
Provide staff direction.
FISCAL IMPACT:
RECOMMENDATION
The revenue generated by the estimated Fire Protection Services MSBU rate schedule at 50% of the total assessable portion of the Fire Rescue budget is anticipated to be $12,660,727. The MSBU revenue could be used to reduce the Fire Rescue MSTU (Fund 1120) with Board approval. The Fire Rescue MSTU revenue has been tentatively approved for FY19 at $36,679,376. Upon adoption of the initial assessment resolution and the proposed Ordinance, the Fire Rescue MSTU would change title to the Emergency Medical Services (EMS) MSTU and retain the fund number 1120.
|
Funding Source |
County Funds |
Non-County Funds |
|
EMS MSTU |
$24,018,649 |
|
|
Fire Protection Services MSBU |
$12,660,727 |
|
|
|
|
|
|
Subtotal |
$36,679,376 |
|
|
Project Total |
$36,679,376 |
ALTERNATIVE RECOMMENDATIONS
None
DOCUMENT(S) REQUIRING ACTION:
☐Budget Transfer / Amendment ☐ Chair Letter ☐Contract / Agreement
☐Grant / Application ☐Notice ☒Ordinance ☒Resolution
☐Other: