TAVARES, Fla. -- City officials want a fire-assessment fee to pay for fire services, which would allow lower property taxes in the coming fiscal year.
The City Council gave its first approval to the 2012-13 budget, with a property-tax rate that is 13 percent less than the current rate but includes a fire-assessment fee of $12.75 a month, or $153 a year, per residence.
The new tentative tax rate is $5.895 for every $1,000 of a home's taxable property value.
City residents also will pay a separate tax of 46 cents per $1,000 taxable value, to cover the debt for the expansion of Wooton Park approved by voters in March.
Under the proposed budget, a homeowner with a taxable value of $100,000 after exemptions would pay $635.62 in taxes.
Tavares officials will hold a second public hearing and give final approval of the $12.5 million budget at 5:05 p.m. Sept. 19 at City Hall. The fiscal year begins Oct. 1.
Other Lake County cities are turning to fire fees in their upcoming budgets as well.
Mascotte officials have proposed the same property-tax rate as last year, $9.61 per $1,000 taxable value, because the city has reached its tax-rate cap. Because of declining property values, that tax rate would collect 17 percent less in revenue.
However, Mascotte residents would see the fire-assessment fee double, from $60 a year to $100 a year.
Minneola officials have proposed decreasing the city tax rate to $6.30 per $1,000 taxable value, while adding a fire-assessment fee of $59 per residence.
City Manager Mark Johnson said the fee helps to diversify the city's revenue stream. The new fire-assessment fee would generate about $248,000 in revenue. City officials have worked hard to trim the city budget by 31 percent in recent years, he said.
In Tavares, officials are adding a fire-assessment fee of about $12.75 a month, which aims to spread the cost of paying for fire service among those who don't pay property taxes, City Administrator John Drury said.
Commercial properties would pay a fire fee on a tiered scale based on the square footage of the business.
"What the council is trying to do is create equity among all of the citizens," Drury said. "In the current situation, those who don't pay any city taxes do not pay toward fire protections."
Drury said there are hundreds of homeowners with enough exemptions that they pay no property taxes.
The fire-assessment fee would generate about $1.57 million in revenue, and Drury said that would cover about 75 percent of the Fire Department budget.
Adding the fee offers a cost savings for those who do pay property taxes, Drury said. Without the fire-assessment fee, homeowners would have seen a 26.5 percent jump in the property-tax rate.
The upcoming budget includes two fewer positions in the library but adds two entry-level firefighters.
City employees are also scheduled to get their first raise in years in January. Mayor Bob Wolfe asked whether it would be feasible to have that cost-of-living increase take effect in October. Such a change will be discussed at the next public hearing on Sept. 19, when the budget is finalized.
Copyright 2012 - Orlando Sentinel
McClatchy-Tribune News Service
