DUNEDIN — With the state Legislature considering elimination of property taxes, city commissioners agreed May 19 to study a fire assessment that would charge homes and businesses for fire protection.
The special assessment could replace as much as $9 million in property tax revenue the city stands to lose under a bill that has cleared the Florida House but not the Senate, City Manager Jennifer Bramley told commissioners.
“Should one of these bills pass, we need to be in a position to reduce services, as well as identify alternative revenue sources,” Bramley said.
A fire assessment is a recurring annual charge dedicated to a specific service, said Chris Roe, the city’s legal consultant with Bryant Miller Olive. Homestead exemptions do not apply, and payment is mandatory.
The amount each property owner pays would be set at the commission’s discretion, Roe said, but the city would need to hire a methodology consultant to justify the formula in case of a court challenge. The study typically divides calls between residential and commercial properties.
For example, if 60% of fire calls serve homes and the city needs $1 million to fund the department, residents would cover $600,000 and businesses $400,000. Residents can also be assessed based on property improvements.
Before any levy, the city must notify every affected property owner of the proposed amount, its purpose and the time and place of a public hearing.
“There’s something about a fire assessment that turns people out,” Roe said. He predicted the meeting room would fill with residents saying they love their firefighters but object to paying through an assessment.
“The Legislature, by requiring this due process and notice and public hearing, has made it difficult to impose an assessment,” Roe said. “It’s meant to be politically difficult.”
Bramley said the city would move deliberately, holding public meetings before bringing the proposal to a vote.
Vice Mayor Robert Walker said the assessment could give the city flexibility heading into next year’s budget, including the option of holding the millage rate steady or rolling it back.
Commissioner Steven Sandbergen said he would support moving forward but wanted to ensure fairness across property types. “That house that’s been there for 30 years is as prone to fire as a nonprofit,” he said.
Commissioner Jeff Gow backed the study as long as the public stays involved. Commissioner Tom Dugard said he was initially resistant, citing affordability concerns, but came around after learning that 40% of the city’s residential properties pay no property tax.
“Under the fairness doctrine, I’m interested in proceeding further with this,” Dugard said.
Mayor Maureen Freaney said she shared concerns about adding a new charge but viewed the assessment as a way to protect city services from Tallahassee.
“You never want to create a new assessment if you don’t have to,” Freaney said. “I wouldn’t have done it if we hadn’t been pushed this way.”
The city will publicize the proposal and hold work sessions before the first public hearing.