City Commission adopts changes to Fire Assessment Fee methodology

Commissioner Reina Saco makes a motion at the March 23 General Policy Committee meeting

BY JARRED SPANOS, Alachua Chronicle Correspondent

GAINESVILLE, Fla. – At the Gainesville City Commission’s General Policy Committee meeting on March 23, the commission adopted a new methodology for determining the Fire Assessment Fee that is assessed to residents and businesses in the city of Gainesville.

Sandi Neubarth from Government Services Group, Inc. (GSG), a consultant hired by the City, introduced a new fire assessment methodology on Thursday. The last update to the methodology was in 2018, and methodologies are typically updated every four or five years.

A fire assessment is a charge imposed on real property to pay for fire protection services. It does not include EMS-type services above the level of a first responder. It is a home-rule revenue source driven by case law with two prongs: it must have a benefit to the property, and it has to be fairly and reasonably apportioned.

City Manager Cynthia Curry warned that under the proposed methodology, “There will be some users who will have a substantial increase.”

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The City implemented the fire assessment in 2010 to provide a recurring, stable, and more equitable source of funding for fire services and to diversify revenue sources the City relies on to fund services.

Current methodology

The current fire assessment program uses the Demand Capacity Methodology based on National Fire Protection Association (NFPA) standards. The assessment is based on fire protection units for residential and non-residential properties; those units are calculated based on building hazard class and the building square footage. For example, one unit of a residential building would be 1,449 square feet, and one unit for a riskier commercial building might be 339 square feet. The current methodology also offers a 10% discount for fire suppression sprinklers.

Neubarth explained that the goal is to develop a simplified methodology that is legally defensible and can generate revenue for fire protection services. GSG recommended using a version of the Historical Demand Methodology, which is used by 90-95% of the programs in Florida.

Proposed methodology

The methodology looks at four components: service delivery, the fire assessable budget, apportionment of costs using incident data, and apportionment of parcels using tax roll data. The methodology allows GSG to develop a 5-year average rate scenario.

Commissioner Bryan Eastman pointed out that the City will already need to raise property taxes for the next fiscal year to make up for the reduction in transfer funds from Gainesville Regional Utilities. He said, “There’s going to be a shock of some kind to folks when their tax bill comes in, and this will also be on top of it.” He added, “I don’t think this is the right fiscal year to be making all of these big, rapid changes.”

The projected rates based on types of properties show a decrease for a 1,875-square-foot single-family home, an increase for a multi-family property, a significant increase for an apartment complex with more than 10 units, and significant increases for institutional properties.

Multiple motions fail

Commissioner Cynthia Chestnut made a motion to accept staff’s recommendation and adopt the new methodology, and Commissioner Reina Saco seconded it. The motion failed, 3-3, with Chestnut, Saco, and Mayor Harvey Ward in favor and Commissioner Desmon Duncan-Walker absent.

Commissioner Ed Book made a motion to continue to use the current methodology next year but eliminate the sprinkler credit. Commissioner Casey Willits seconded the motion. The motion failed, 3-3, with Eastman, Willits, and Book in favor.

Ward seemed frustrated and said, “Okay, so nothing changes at this point.”

Saco made a motion to accept the recommendation for the new methodology, continue to provide the current exemptions (governmental entities, vacancy credits for RV/mobile home parks, a hardship assistance program for low-income seniors and residents, and a charitable assistance program for charitable and religious organizations), discontinue the sprinkler credit, and ask the Equity Office to do an equity review of the policy and come back with “a report or memo of some kind.” Chestnut seconded the motion.

Chestnut said, “We are going to have many difficult decisions as we go through this budget process this year. I do recall… the $79 million that Ocala had to begin paying their citizens. And so, I think that we’ve just got tough decisions; this is the beginning, this is one, and we need to move forward with it.”

Saco’s motion to adopt the new methodology passed 4-2, with Chestnut, Ward, Saco, and Book in favor.

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