Alachua County, FL Fire Rescue Assessment Study March 30, 2017
Agenda • Introduction to Stantec • Fire Special Assessment Background • Methodology Discussion • Preliminary Assessment Calculations • Property Impact Analysis • Next Steps • Open Discussion & Scenario Analysis
Introduction to Stantec
Introduction to Stantec • Formally Burton & Associates • Served as Assessment, Utility Rate and Municipal Financial Consultants in Florida for 29 years • Project Team: • Mike Burton – Principal • Erick van Malssen – Managing Consultant • Vita Paltridge – Consultant • Peter Napoli – Analyst
Fire Special Assessment Background
Fire Special Assessment Background Non-Ad Valorem Fire Special Assessments are an • alternative revenue mechanism used to directly fund fire suppression services By law, assessment revenues must be used for fire suppression • services funding only Any costs not recovered by the Assessment (i.e. exemptions, • EMS costs) must be funded by other sources The County currently funds Fire suppression services through • Ad Valorem taxes via a Municipal Services Taxing Unit (MSTU) Supplemented with other revenue sources such as: • Utility Public Service Taxes (PST) • Communication Service Taxes (CST) • A Fire Assessment program would replace the MSTU with a • Municipal Services Benefit Unit (MSBU) Supplemental revenues would continue to be required • even at full cost recovery (exemptions and EMS costs)
Fire Special Assessment Background Why would the County consider a Fire Special Assessment? • Provides a diversified revenue source • Not subject to external variable forces such as • property value fluctuations All property owners receiving benefit from the fire • suppression service provided by the County will pay a fair share of the costs as defined by the calculation methodology Relieves millage cap space for the County and • Incorporated areas currently within the MSTU FY 2017 Fire MSTU Participants Law Fire Total Operating MSTU MSTU Millage Municipality Millage Archer 5.2549 2.4342 1.7705 9.4596 Hawthorne 5.3194 2.4342 1.7705 9.5241 Waldo 7.4180 0.0000 1.7705 9.1885
Fire Special Assessment Background • Legal Requirements for all assessment programs • Two pronged test The property assessed must derive a special benefit • from the service provided The assessment must be fairly and reasonably • apportioned among the properties that receive the special benefit • Due process before the assessment is imposed Mailed and published notice • Initial and Final Public hearings • • Exclusions: rights-of-way, submerged lands, etc. • Required Exemptions: governmental & vacant agricultural properties • Optional exemptions: churches & non-profits
Fire Special Assessment Background How would it work? • All parcels in the MSBU would pay their fair share of the • costs of Fire Service that are included in the assessment The assessments will be included on property owner’s • annual tax bill The Fire Special Assessment can be adopted at 100% • recovery of eligible fire costs or at any lower percentage desired Example 1: Adopt at a cost recovery level to • recover the same revenues generated by the current or projected MSTU Ad Valorem Millage rate (Revenue Neutral) Example 2: Adopt up to 100% cost recovery to fully • fund Fire services through the Assessment program Some revenue support from other revenues • required to offset exempted properties, early payment discounts, etc.
Methodology Discussion
Methodology Discussion “Availability” Methodology • Based upon the benefit conferred on all parcels by the • availability of fire protection service whether or not a request for service is ever made Utilizes publicly available parcel data from the Alachua • County Property Appraiser Simple, Two Tier rate structure for all parcels • Does not differentiate between property classes • Administratively easier to maintain than other • methodologies No call/incident data to update every 3 years • Requires significantly less data analysis to prepare • annual roll updates Self-Updating as parcels develop • Methodology has been validated by the Florida • Supreme Court
Methodology Discussion • Availability-based cost apportionment with two tiers of benefit Tier 1 Benefit – Availability – Apportioned to all parcels, • improved and un-improved All properties are charged the Tier 1 rate • Single fee per parcel • Tier 2 Benefit – Protection from loss of structures – • Apportioned to improved parcels only in proportion to the value of the structures on the parcel Only developed properties are charged the Tier 2 • rate Charge per every $5,000 of structure value on parcel • $5,000 of structure value = 1 Equivalent Benefit • Unit (EBU) Structure value represents the depreciated • replacement cost of buildings and extra features, not taxable or assessed value
Methodology Discussion The special benefits conferred in each category above • include the following: Response Readiness Availability – all properties • Availability of immediate response to fire • Enhanced property value • Enhanced marketability of and/or ability to develop • property Protection from Loss of Structures – improved properties • All of the above benefits, plus • Protection from the loss of structures on the property • due to fire Ability to obtain fire insurance and to obtain that • insurance at attractive rates Protection from loss by the availability of fire • suppression service provided by the County
FY 2018 Preliminary Assessment Calculations Note: All calculations are preliminary at this time and may change slightly as data is updated throughout the study process.
Preliminary FY18 Assessment Calculations • Primary Data Source: 2016 Parcel databases provided by the Alachua County Property Appraiser support the preliminary calculations • Database will be updated in June when the preliminary 2017 data is available • Taxing Districts included in Analysis: • Unincorporated Areas (Suwanee & St. Johns) • Incorporated Areas currently in the Fire MSTU: Archer • Hawthorne • Waldo • • Other incorporated Areas included in assessment: Alachua • LaCrosse •
Preliminary FY18 Assessment Calculations The Initial Assessment Calculations presented herein are • designed to be revenue neutral to the projected FY 2018 MSTU Ad Valorem tax revenues Calculation of FY18 Revenue Neutral Target & Millage $ 5,499,081,069 FY18 Estimated Property Valuation 1.7705 FY17 Adopted Millage $ 9,249,317 FY18 Est. Ad Valorem Revenues Plus: FSAA $ 1,500,000 $ 693,784 Plus: Personnel Cost Increases $ 400,000 Plus: Fund Stabilization $ 11,843,101 Total Ad Valorem Revenue Required* Millage Increase 0.4965 2.2670 Required Millage to Fund $ 11,843,101 Revenue Neutral Assessment Goal* *Does Not Include: Enhancements or the Implementation of the Master Plan
Preliminary FY18 Assessment Calculations Revenue Summary Total FY 2018 Allocated Assessment $ 13,726,416 Required Governmental Exemptions $ (967,332) Required Agricultural Exemptions $ (290,526) Billed Assessment After Exemptions $ 12,468,558 Less: Early Payment Discount & Contingency 5.00% $ (623,000) Estimated Net Collected Revenue (Rounded) $ 11,846,000 Projected FY 2018 Revenue Target $ 11,843,101 Allocation Summary Assessment Assessment Tier Allocation % Allocated Units Allocation Tier 1 - Per Parcel 31.84% $ 4,370,491 54,879 Tier 2 - Structure Value 68.16% $ 9,355,925 1,241,595 Total 100.00% $ 13,726,416 1,296,474 Assessment Results Assessment per Property Category Unit Type Billed Revenue Unit Tier 1 - Per Parcel $ 79.64 Parcel $ 3,996,893 Tier 2 - Structure Value $ 7.54 Structure EBU $ 8,471,665 Total $ 12,468,558
Example: Average Single Family Home Average Single Family Home MSTU Calculation Assessed Home Value: $169,000 Less: Homestead Exemption: -$50,000 Taxable Value: $119,000 FY 2018 Target MSTU Millage: 2.2670 FY 2018 Estimated MSTU Taxes: $269.77 Average Single Family Home Assessment Calculation Total Structure Value of Avg SF Home: $134,900 Rouned down to nearest $5,000: $130,000 Structrue Value EBUs (Rounded value/5,000): 26 Tier 1 Rate (per parcel): $79.64 Tier 2 Rate (per structure value EBU): $7.54 Annual Assessment Bill Calculation: Tier 1 Charge: $79.64 Tier 2 Charge (rate x EBUs): $196.04 Total Annual Assessment: $275.68 $ Difference compared to MSTU: $5.91
Single Family Residential Impacts Fire/Rescue Assessment (Residential) - Methodology Bill Comparison Assessment Ad Valorem $594 $600 $494 $500 $400 $313 $277 $276 $270 $300 $223 $200 $160 $110 $100 $57 $0 Single Family - 1st Single Family - 2nd Single Family - 3rd Single Family - 4th Average Single Quartile Quartile Quartile Quartile Family Home
Non-Residential Impacts Fire/Rescue Assessment (Non-Residential) - Methodology Bill Assessment Ad Valorem Comparison $11,780 $12,000 $10,000 $7,703 $8,000 $6,000 $4,868 $4,196 $4,000 $555 $1,057 $600 $336 $2,000 $1,179 $1,045 $957 $899 $600 $615 $0 $0 $0
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