TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, City Manager
TITLE: A Resolution of the City Commission of the City of North Port, Florida, as the Governing Body of the North Port Fire Rescue District, Establishing Not-To-Exceed Non-Ad Valorem Assessment Rates for the North Port Fire Rescue District for fiscal year 2022 - 2023; Incorporating Recitals; Providing for Conflicts; Providing for Severability; and Providing an Effective Date.
Recommended Action
Adoption of a Resolution No. 2022-R-33, establishing Not-To-Exceed Non-Ad Valorem assessment rates for the North Port Fire Rescue District for fiscal year 2022 - 2023.
Background Information
Pursuant to Section 66, Article II of the Code of the City of North Port, the Governing Body (Commission) shall have the duty, right, power and authority to levy by Resolution and collect special assessments against all non-exempted benefited property within its territorial bounds in order to provide funds for the purpose of Fire Rescue and First Responder responsibility at the North Port Fire Rescue District.
Non-Ad Valorem assessments cannot be used to fund the operations of an EMS system. In the City of North Port all expenses associated with EMS are funded by Ad Valorem taxes and are found in the General Fund Budget.
The Fire Rescue District Rate Study and Recommendations were adopted by the City Commission in 2014 and have been revisited and approved annually. The proposed rates are consistent with the recommendations of the study as adjusted to fund the operations of the Fire Rescue District.
Fire Rescue is proposing a Not-to-Exceed rate of 3.5% increase in rates for fiscal year 2022-2023. The rates as shown in the table in Section 2.01 of the Resolution are recommended as the Not-to-Exceed rate for fiscal year 2022-2023 which would increase the cost of an average home on a ¼ acre property by $9.17 over FY Year 2021-22 rates. The actual final adopted rate will occur in September as part of the budget approval process. The adopted rate may be lower than the Not-to-Exceed rate based upon the budget process.
The projected total assessment is $15,171,737. That figure is based on the sum of: (1) the total billed assessment from FY 2022-2023, (2) projected parcel growth, (3) building value increase projected at 7.5%, and (4) the 3.5% proposed rate increase. The projected net collected will be $14,640,726 based on an assumption of a 96.5% rate of assessment payments. Once staff has received the June 1st update, they should know the real revenue target.
Previously approved discretionary exemptions at the direction of the City Commission will remain.
Resolution No. 2022-R-33 establishes for Not-To-Exceed Non-Ad Valorem Assessment Rates for the Fiscal Year 2022-23 as found in the table in Section 2.01.
The City Attorney advises the document is legally correct as to form.
Strategic Plan
Maintain the adopted level of health and public safety services.
Financial Impact
The Not-to-Exceed rate will increase Non-Ad Valorem assessments at the proposed rate. The projected net assessment revenue budgeted for Fiscal Year 2022-23, at a payment rate of 96.5%, is $14,640,726.
Procurement
Attachments:
1. Resolution No. 2022-R-33
2. Property Impact Table
3. Resolution No. 2021-R-22
Prepared by: Deanna Marshall, Business Manager
Department Director: Scott Titus, Fire Chief