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Sebring Adopts Fire Assessment

By MARC VALERO

Highlands Today

Published: July 17, 2008

SEBRING - The Sebring City Council gave final approval to start a fire assessment, but Councilman John Griffin and Mayor George Hensley believe the rate plan unfairly benefits large businesses while putting a burden on others.

With state proposals threatening to limit a city's property tax rate and some property owners paying no taxes because of exemptions, Sebring officials decided a fire assessment would be a fair way of funding the fire department.

The Sebring City Council approved the Fire Protection Assessment Ordinance on its second reading Tuesday.

Then with plans to decrease the property tax rate in relation to the expected income generated by the fire assessment, the council and Hensley discussed who would benefit and who would have to pay more taxes.

Griffin provided numerous examples of large businesses whose taxes would go down by a few thousand dollars if the assessment was implemented at 100 percent with a corresponding reduction in the millage.

The owner of a warehouse/storage business will save almost $3,000 on taxes even with the fire assessment, Griffin said. A nearby homeowner who pays $2.72 in property taxes will end up paying $257 above that.
Councilmember Scott Stanley said "that's the purpose of this; we were saying some people were paying no taxes at all."

Griffin also pointed out a number of smaller businesses such as mobile home parks that would be paying $10,000 to $20,000 more in taxes annually.

There are some mobile home parks that are going to pay a $25,000 fire assessment fee, he said.

Hensley suggested a flat rate for a house and a flat rate for a commercial building.

"I say it's more reasonable to me even if it's an additional cost without lowering the millage," he said.
Councilwoman Margie Rhodes disagreed.

"I think one of the reasons we are doing this is because we have a lot of properties in the city limits that don't pay any taxes," she said. "So we are asking them to pay something."

Adding an assessment on top of people who are already paying taxes without a reduction in millage would defeat the purpose of the fire assessment, she added.

Jim Gervasi, of Ridge Real Estate, said "you're going to have a public outcry that you are not going to believe if you pass something like this."

Everybody should pay something to cover the cost of the fire department, but the assessment should be spread out to be more equitable, he said. "The inequities you see there are outrageous."

Councilman Dan Andrews said, "I think everybody needs to pay their fair share and the assessment does that."

Stanley said "start it at 10 percent so it's not an onerous burden on anyone."

By a 4-1 vote, with Griffin voting "no," the council approved the initial assessment resolution at a rate of 100 percent with the actual rate to be 10 percent in the first year.

For example: the rate study showed that each residential unit should pay $259 per year, but at 10 percent, the assessment would be $25.90.

The motion by Councilman Scott Stanley also called for a corresponding reduction in the property tax rate.

Notices explaining the fire assessment will be sent to affected property property owners on July 29.

A public hearing to consider and adopt the final assessment rate is scheduled for Aug. 19.

The assessment rates were determined by a study of the number of calls to the fire department from each category of structure and property.

If the assessment were to be implemented at 100 percent the annual assessment would be as follows:

• Residential - $259 per dwelling.

• Commercial - 11 cents per square foot.

• Industrial/warehouse - 3 cents per square foot.

• Institutional - 30 cents per square foot.

• Nursing homes - $1.99 per square foot.

• Vacant land parcel - $36 per parcel.

RATES