City Council Special Meeting Monday, December 11, :00 pm Civic Center 105 N. 31 st Street. Mayor William A. Cathey

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1 City Council Special Meeting Monday, December 11, :00 pm Civic Center 105 N. 31 st Street Mayor William A. Cathey Councilman Bill McGlothlin Councilman Jerry Wallace Councilwoman Linda Albrecht Councilman Rex Putnal 1. Fire Assessment Discussion- Fire Chief *You are hereby notified that in accordance with Florida Statutes, you have a right to appeal any decision made by the Council with respect to any matter considered. You may need to insure that a verbatim record of the proceedings is made which may need to include evidence and testimony upon which the appeal is based. Any person requiring a special accommodation at this meeting because of a disability or physical impairment should contact Adrian Welle, City Clerk, at 114 North 22 nd Street, Mexico Beach, Florida 32456; or by phone at (850) at least five calendar days prior to the meeting. If you are hearing or speech impaired, and you possess TDD equipment, you may contact the City Clerk using the Florida Dual Party Relay System, which can be reached at (TDD). 12/7 Page 1

2 City of Mexico Beach Fire Special Assessment Program December 11, /7 Page 2

3 What is a Fire Assessment? Charge imposed against real property to pay for fire protection services Fire services includes such things as: Fire suppression Hazmat response Fire prevention Emergency response and disaster preparedness Safety education Does NOT include EMS-type services above level of first responder 12/7 Page 3 2

4 Case Law Requirements Special Benefit to property Fire services (up to first responder) do provide benefit and Fair and reasonable apportionment Logically and factually driven method must be developed to spread the costs among the benefited properties. Does method of apportionment make sense in terms of what is being provided? Legislative determination receives judicial deference. 12/7 Page 4 3

5 Historical Demand Methodology* Court tested and approved Most widely adopted Historical demand is the driving factor Based on initial response; therefore, treats all calls equally *Methodology was upheld by the Fourth District Court of Appeals in in Desiderio Corporation, et al. vs. The City of Boynton Beach, Florida, et al., 39 So.3d 487 (Fla. 4 th DCA 2010). 12/7 Page 5 4

6 Data Components Service Delivery First Responder Volunteer Fire flow available non-residential square foot cap 8,150 square feet* Benefit area Incorporated Mexico Beach Fire Department Budget Developed 5-Year Average Assessable Budget Develop Cost Apportionment Call/Incident Data Calendar Year 2016 Develop Parcel Apportionment/Preliminary Assessment Roll Ad Valorem Tax Roll Data Building/Property Use Dwelling Units Square Footage Vacant Land Parcels *10 buildings exceed non-residential cap 12/7 Page 6 5

7 5-Year Proforma Assessable Budget Description FY Adopted Proposed FY FY FY FY Year Average Personnel $161,953 $597,844 $597,844 $616,419 $635,693 $655,693 $620,699 Operating $54,663 $99,163 $79,663 $80,741 $81,841 $82,961 $84,874 Capital Station Repairs 0 70, ,000 Machinery & Equipment (Bunker Gear) 0 24,000 10,000 10,000 10,000 10,000 12,800 Apparatus Replacement - Engine debt service 0 31,595 31,595 31,595 31,595 31,595 31,595 Reporting Software 0 2,000 2,000 2,000 2,000 2,000 2,000 Total Capital $0 $127,595 $43,595 $43,595 $43,595 $43,595 $60,395 Revenues Bay County Contract $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 15,000 Total Revenues $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 Total Expenditures $216,616 $824,602 $721,102 $740,755 $761,128 $782,250 $765,967 Total Revenues $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 Net Expenditures $201,616 $809,602 $706,102 $725,755 $746,128 $767,250 $750,967 Miscellaneous Assessment Expenditures Study Costs 13,000 13, ,600 Implementation & Annual Maintenance 6,000 6,000 5,000 5,000 5,000 5,000 5,200 First Class Notices 3,375 3,375 3, ,380 Collection Costs 2%) 5,042 18,729 16,084 16,452 16,910 17,386 17,112 Collection Costs 2%) 5,042 18,729 16,084 16,452 16,910 17,386 17,112 Statutory Discount & Undercollection (@ 5%) 13,004 48,302 41,480 42,428 43,611 44,837 44,132 Total Misc. Assessment Expenditures $45,464 $108,136 $82,024 $80,382 $82,482 $84,659 $87,536 Total Assessable Costs $247,080 $917,738 $788,126 $806,137 $828,610 $851,909 $838,504 12/7 Page 7 6

8 Cost Apportionment: Based on Historical Demand for Fire Services Calendar Year 2016 NON-RESIDENTIAL - 42 NON-RESIDENTIAL % VACANT LAND -- 9 RESIDENTIAL VACANT LAND % RESIDENTIAL % 12/7 Page 8 7

9 Parcel Apportionment* Category Residential Category Single Family Mobile Home Multi-Family Parcel Apportionment Dwelling Unit Non-Residential Category Commercial RV Park Industrial/Warehouse Institutional Square footage (capped at 8,150 sq. ft.) Vacant Land Per Parcel 12/7 Page 9 8

10 Assessment Rate Calculation Maximum Rates (Based on 5-Year Average Assessable Budget) Category Number of Incidents Percentage of Calls Proportion of Assessable Costs Billing Units Per Unit Rate Residential % $672,753 1,892 $ Non-Residential % $136, ,553 $0.50 Vacant Land % $29, $54.00 Total % $838,504 Estimated Buy-Down Government $10,691 Institutional Tax Exempt $14,826 Net Revenue $812,987 Non-Residential Buildings Maximum 8,150 sq. ft. $4, Average Commercial 2,865 sq. ft. $1, Average Industrial/Warehouse 3,717 sq. ft. $1, /7 Page 10 9

11 Assessment Rate Scenarios Category Status Quo 1 79% 2 Assessable 100% Budget 3 Residential $ $ $ Non-Residential $0.15 $0.40 $0.50 Vacant Land $16.00 $43.00 $54.00 Estimated Total Revenue $247,080 $662,418 $838,504 Estimated Buy-Down $7,521 $20,164 $25,517 Government $3,152 $8,451 $10,691 Institutional Tax Exempt $4,369 $11,713 $14,826 Estimated Net Revenue $239,559 $642,254 $812,987 Max Non-Residential 8,150 sq. ft. $1, $3, $4, Avg Commercial 2,865 sq. ft. $ $1, $1, Avg Industrial/Warehouse 3,717 sq. ft. $ $1, $1, Funding current Fire Department Budget only no enhanced services 2 Implementing enhanced services funding $200,000 from general fund and remainder from fire assessment 3 Implementing enhanced services funding 100% with fire assessment revenue 12/7 Page 11 10

12 Implementation Schedule Event Date Optional Workshop November 14, 2017 Advertise Resolution of Intent Week 1 Week 2 Week 3 Week 4 Thursday Newspaper November 16, 2017 November 23, 2017 November 30, 2017 December 7, 2017 Adopt Resolution of Intent December 12, 2017 City Adopts Initial Assessment Resolution January 9, 2018 January 23, 2018 Advertise Public Hearing on Final Assessment Resolution January 18, 2018 Mail First Class Notices to Property Owners January 23, 2018 February 8, 2018 (Statutorily by February 20, 2018) February 8, 2018 (Statutorily by February 20, 2018) Informational Workshop February March 2018 Adopt Final Assessment Rate Resolution February 13, 2018 March 13, 2018 Fire Assessment Bills Mailed February 26, 2018 March 19, 2018 Fire Assessments Due March 31, 2018 April 30, /7 Page 12 11

13 Policy Direction Notice to Proceed with Implementation Rates Exemption Policy Government Parcels Institutional Tax Exempt Parcels Other Issues 12/7 Page 13 12

14 City of Mexico Beach Fire Assessable Budget Description FY Adopted Proposed FY Annual Increase FY FY FY Year Average Personnel Salaries 34, , , % 297, , , ,153 Volunteer Salaries 74,400 73,000 73,000 73,000 73,000 73,000 73,000 Taxes 8,303 27,659 27, % 28,489 29,343 30,224 28,675 Retirement 13,891 67,147 67, % 69,161 71,236 73,373 69,613 Health Insurance 20, , , % 107, , , ,472 Workmans Comp 11,220 39,345 39, % 41,312 43,378 45,547 41,785 Unemployment Total Personnel $161,953 $597,844 $597,844 $616,419 $635,693 $655,693 $620,699 Operating Training 0 16,000 9,000 9,000 9,000 9,000 10,400 Accounting and Auditing Travel Communication 3,500 17,500 5, % 5,050 5,101 5,152 7,560 Utilities 2,500 10,000 10, % 10,200 10,404 10,612 10,243 Rentals and Leases Insurance 4,913 4,913 4, % 5,011 5,111 5,214 5,032 Repairs and Maint 15,000 15,000 15, % 15,300 15,606 15,918 15,365 Printing Promotional 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Other Current Charges 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Office Supplies 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Operating Supplies 9,000 9,000 9, % 9,180 9,364 9,551 9,219 Uniforms 1,000 8,000 8,000 8,000 8,000 8,000 8,000 Fuel and Lubricants 12,500 12,500 12, % 12,750 13,005 13,265 12,804 Books, Pubs and Memberships 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Total Operating $54,663 $99,163 $79,663 $80,741 $81,841 $82,961 $84,874 Capital Buildings Station Repairs 0 70, ,000 Machinery & Equipment (Bunker Gear) 0 24,000 10,000 10,000 10,000 10,000 12,800 Apparatus Replacement - Engine debt service 0 31,595 31,595 31,595 31,595 31,595 31,595 Reporting Software 0 2,000 2,000 2,000 2,000 2,000 2,000 Reserve -- Apparatus Replacement Total Capital $0 $127,595 $43,595 $43,595 $43,595 $43,595 $60,395 Revenues Bay County Contract $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 15,000 Total Revenues $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 Total Expenditures $216,616 $824,602 $721,102 $740,755 $761,128 $782,250 $765,967 Total Revenues $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 12/7 Page 14 $15,000

15 Net Expenditures $201,616 $809,602 $706,102 $725,755 $746,128 $767,250 $750,967 Miscellaneous Assessment Expenditures Study Costs 13,000 13, ,600 Implementation & Annual Maintenance 6,000 6,000 5,000 5,000 5,000 5,000 5,200 First Class Notices 3,375 3,375 3, ,380 Collection Costs 2%) 5,042 18,729 16,084 16,452 16,910 17,386 17,112 Collection Costs 2%) 5,042 18,729 16,084 16,452 16,910 17,386 17,112 Statutory Discount & Undercollection (@ 5%) 13,004 48,302 41,480 42,428 43,611 44,837 44,132 Total Misc. Assessment Expenditures $45,464 $108,136 $82,024 $80,382 $82,482 $84,659 $87,536 Total Assessable Costs $247,080 $917,738 $788,126 $806,137 $828,610 $851,909 $838,504 Status Quo Budget $247,080 Enhanced Services Budget $917,738 5-Year Average Enhanced Services Budget $838,504 Funding only Enhanced Services $638,504 12/7 Page 15