Over the years, fire rescue departments in Hernando have gone through several mergers. Most recently was in 2013 with Spring Hill Fire Rescue becoming part of the Hernando County
Department. Virginia Singer, Hernando County Public Information Manager explains, “At that time, the Fire MSBU rate for residential was reduced from 194 to 171. Also, there was a large discrepancy between salaries of the two departments. The salaries were aligned in 2014 when the Board of County Commissioners (BOCC) approved a contract with the Firefighter Union.” However this salary alignment came with a decently sized price tag, $3 million.
Hernando County Fire Chief Scott Hechler spoke about these increased personnel costs as well as fleet replacement and maintenance. Both have contributed to a $2 million budget shortfall in FY 2015. According to Singer, “There has been significant station repair and equipment costs increases.” Additionally, new facilities are in the planning stages which will raise future rates if approved. The rates advertised will satisfy a 25% budget increase according to the Tindale and Oliver presentation (p.23), but commissioners have the option of adopting something lower.
The Fire Rescue MSBU is a non ad valorem tax, meaning that it is not based on property values. The total amount of needed revenue is divided by the total number of equivalent residential units (ERU’s) and that amount is assessed per ERU. One ERU is defined as a single residential lot.
This means that two homes will pay the same amount even if one home is worth much more. In an attempt to make this tax more fair the Board of County Commissioners is thinking of making it a tiered tax, where homes of a certain square footage range are assessed the same with smaller tiered homes paying less and larger tiered homes paying more. The tier system being considered is has three tiers. This way someone in a mansion would pay more than someone in a ranch style home. It would be sort of a hybrid between ad valorem and a pure MSBU.
The county hired Tindale Oliver to complete a study evaluating funding needs and where assessment realignments need to take place. This realignment will correspond assessment rates to demand for fire rescue services of specific land uses.
With the county absorbing independent fire departments like the Spring Hill Fire Rescue, budgetary shortfalls for personnel and fleet maintenance have surfaced. Chief Hechler explained the following to commissioners at the May 26th meeting, “The major cost drivers as far as funding needs come to personnel. Then with the merger of the two departments as you know we had firefighter medics that were sitting side by side making different salaries that had the same years of service… Also we had a very large turnover rate. I think we lost 30 people in 12 to 13 months… we are draining our resources out to other departments. The salary [plan] that you approved helped stabilize the department.”
Chief Hechler clarified that much of the budget increase is due to raising salaries of the county firefighters to be on par with the former Spring Hill firefighters, as firefighters of the county werebeing paid less than the Spring Hill firefighters. He stated, “Three million dollars of the budget increase is due to salaries.” He also stated that over the last two years, the reserves on the fire rescue side have been emptied to the minimum amount allowed in order to provide raises to the Hernando County firefighters.
Virginia Singer explains that other factors in addition to salary increases have contributed to the budget shortfall, “All costs have risen to operate the HCFR without funding for those increases. Examples include county allocation, fleet replacement, emergency medical equipment, training and station facility repairs and utilities costs.” Chief Hechler explained that an amount of $271,000 of the budget increase is due to fleet maintenance.
In FY 2015, collected assessment revenues for fire rescue was $17,810,778. The fire rescue budget was roughly $20 million for FY 2015 leaving a $2 million shortfall. For clarification, Chairman Nicholson stated at this meeting,”Part of the increase [to assessments] would be to recoup that shortage.” If the assessment increases are approved July 14th, then the Fire Rescue MSBU is estimated to be roughly $22 million for FY 2016. There is also an allowance for “a future inflationary rate adjustment” of a maximum 5% annually. In the presentation by Tindale and Oliver, the proposed budget for FY 2018 is estimated to be $24,382,478. This reflects a 5% annual rate increase.
Covered in the FY 2016 budget is the design and permitting of new fire stations according to Virginia Singer. The construction of the fire stations would be put in the 2017 budget. In regards to the new stations, Hechler stated, “If we move forward with the new stations we’re looking at somewhere around… 1.5 to 1.8 million dollars for the station… high end of $200,000 to furnish the building and personnel costs. For station 5 we already have the personnel. For station 15 which is Spring Lake Highway, then that’s 12 personnel, 4 per shift.” He explained that $1.5 million would be needed per year to staff and operate the Spring Lake Highway station in addition to the $2 million to build the facility. Virginia Singer explained that the construction of these facilities will, “provide improved fire/ems capabilities and reduce response times.”
Under consideration as well is an increase of the EMS MSTU millage rate which has been reduced over time from .67 in 2006 to .5534 in 2015. This year the EMS MSTU is experiencing a $1 million shortfall. The Fire Department is asking to move back to a millage rate of .67 which will nearly cover the shortfall. The rate cannot be increased further due to an interlocal agreement with the City of Brooksville that caps the rate at .67. If they go beyond .67, then the City of Brooksville does not have to pay anything and there is a greater revenue loss.
The Hernando County fire department is in need of more revenue, due in large part to salary increases which is most likely to be seen on your tax bill in the near future. Next year, if new facilities are approved, there may be another increase to cover costs of construction.
A public hearing is scheduled on July 14th at 9:30 am in the Hernando County Government Center, 20 N Main Street, Room 160 in Brooksville for input on the proposed rate increases. At the July 14th meeting it is possible for commissioners to adopt a rate less than the publicly notified rate. The rates advertised will satisfy a 25% budget increase according to the Tindale and Oliver presentation on May 26th (p.23).
Current Fire MSBU Assessment Rates:
Advertised Fire MSBU Rates for FY 2016:
