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Minutes 09-11-14 Fire AssessMINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD IN CHAMBERS, AT CITY HALL, 100 EAST BOYNTON BEACH BOULEVARD, BOYNTON BEACH, FLORIDA, ON THURSDAY, SEPTEMBER 11, 2014, AT 6 P.M. PRESENT Jerry Taylor, Mayor Joseph Casello, Vice Mayor David T. Merker, Commissioner Mack McCray, Commissioner ABSENT Michael M. Fitzpatrick, Commissioner 1 Lori LaVerriere, City Manager James Cherof, City Attorney Janet M. Prainito, City Clerk Call to Order Mayor Taylor called the meeting to order at 6 p.m. Roll call revealed a quorum was present. 1. PUBLIC HEARING to adopt FY 2014/2015 Final Fire Assessment Annual Rate Resolution No. R14 -085. Mayor Taylor announced the purpose of the meeting was to adopt the FY 2014/2015 Final Fire Assessment Annual Rate Resolution. Attorney Cherof indicated it was a public hearing and members of the public would have the opportunity to address the Commission on the Resolution adopting of the annual fire assessment. It is a program that has been ongoing in nature, but is approved annually by the City Commission. The City Commission previously adopted a tentative assessment. This is the final action of the Commission for this coming fiscal year regarding the fire assessment. Mayor Taylor opened the issue for public hearing. Agim Banushi, 723 NE 9 Avenue, related the original fire assessment was to build fire departments. Those fire departments are done. The money is now being used for payment for the employees there. He felt what the City was doing was wrong. It is great for the employees, but wrong for the citizens. Mr. Banushi contended if this was MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA September 11, 2014 the intent, the residents should have been informed. He felt raising the fire assessment was wrong and the City should get its affairs in order as far the money being spent and promises made to certain departments. The City should live within its means, not go above and beyond. Joyce Bruck, lived in Ocean Ridge, but owned four properties in Leisureville. Everything keeps going up and up and she would have to raise her rents. She asked if the rate was $88 and was proposed to increase to $100. Mayor Taylor confirmed her understanding and explained it would raise the rate $1 a month or $12 a year to make the annual assessment $100. Chief Ray Carter further explained the money goes directly for fire suppression activity within the fire rescue department. The assessment monies pay only for fire suppression activities. Covered expenses are buying fire trucks, paying for firefighters, buying equipment for the trucks, for example. Attorney Cherof advised the hearing only addresses the fire assessment which is $100 on residential dwelling units. He added the funds raised by the fire assessment only account for slightly less than 49% of the total operating cost of providing fire suppression services. Mark Moretto, of AAM Industries, 225 SE 5 Avenue, pointed out his fee was going from just under $100 to $620 which would be an increase of over 600 %. He had been paying $50 for the first 1,000 square feet and $40 for each additional 1,000 square feet. On the notice he received there was not a charge per square foot, just a total proposed sum. Chief Carter replied the fire assessment had never been based on a tiered square footage. It has always been a specific amount per square foot for industrial, warehouse, institutional, or nursing homes. Ms. LaVerriere asked the square footage of his commercial property. Mr. Moretto replied the notice he received has 1,600 square feet commercial and 5,050 square feet industrial. The amount of square footage is wrong as well on the notice. Chief Carter advised the Fire Department would come to his property and correct any error. Mr. Moretto still maintained the dollars assessed and square footage calculation does not make sense. Ms. LaVerriere advised the current rate would have been $.20 per square foot for commercial property and it would increase to $.23 per square foot. On the industrial property it would go from $.22 to $.25 per square foot. Mr. Moretto argued there was no basis for the consumer to understand the rate changes. 2 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA September 11, 2014 Chief Carter reiterated the fire assessment had always been based on a square footage basis and has never been a tiered system. He suggested the bill received may have been a fire inspection fee rather than the assessment on the property taxes. Mr. Moretto conceded he was not aware of the property assessment and had not seen his tax bill, only the fire inspection billing. Attorney Cherof explained the only other explanation of an increase as described as long as it is the same total square footage, would be if the County Property Appraiser changed the classification from industrial warehouse to commercial. Chris Wurster, 2101 SW 15 Avenue, questioned why the monies had not previously been budgeted and addressed in the budget. Mayor Taylor replied it was in the budget and it was being raised to maintain the service. Mr. Wurster asked if every City was paying an extra amount for their fire department. Mayor Taylor was unaware of the practices of other municipalities. Mr. Wurster was curious why it was so much more when it should be budgeted. Chief Carter advised the total budget is partly funded by ad valorem taxes and partly funded by fire assessment fees as well as revenue from transport fees, fire inspection fees, alarm system fines and other revenues that cover the total cost to provide the service. The entire budget is just over $21 million. In comparison with Delray, that is similar in size and runs per year, has a budget of $25 million. There are a number of cities in South Florida that do pay fire assessment fees that can be in excess of $250 to $300 a year. Mr. Wurster repeated his question why it was not addressed in the budget and an additional fee had to be assessed. Mayor Taylor replied it was addressed in the budget, but because the fee is being raised, a special hearing is required. It was discussed at the budget hearings. Laurd Milanese asked how often the fire trucks are changed. Chief Carter replied every 15 years the trucks and the apparatus on them are replaced. Their service life is considered to be 15 years. Mr. Milanese questioned why those that use the service should not pay for it rather than taxing everybody. Every day there are additional taxes and his increase was over $1,000. The rent cannot be increased or the strip malls would be empty. He hoped the Commission would use their discretion and not increase the assessment to keep businesses in Boynton Beach. Mayor Taylor added all employees went four years without a pay increase, so taxes would not be raised. At some point the employees have to be considered also. No one else coming forward, Mayor Taylor closed the Public Hearing. 3 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA Motion September 11, 2014 Commissioner Merker moved to change the assessment from $88 to $100. Attorney Cherof indicated the appropriate motion would be to approve Resolution R14 -085. Commissioner Merker agreed to the amended language. Vice Mayor Casello seconded the motion. Commissioner McCray noted when the fire assessment was originated he was an elected Commissioner. He voted in favor of the assessment and cautioned the residents it may be a tax that would continue for many years. He was also on the Commission when the assessment was supposed to have sunset in seven years that was not done. The cautionary statement was repeated that the tax would continue until the citizens complained. There should also be discussion on the hardship application that can be obtained. Tim Howard, Director of Finance, indicated there was a hardship application that would be available in his office, online on the website and hard copies available in City Hall, Library and advertised on social media. The notices would be distributed in the next week and the deadline would be October 20 Once the form is filled out and submitted, notice of the determination would be sent. There were 30 applications filed last year. There is also a mobile home vacancy credit available. Commissioner McCray suggested anyone with a hardship see Mr. Howard after the meeting and get his phone number, so he can explain the process. Commissioner Merker heard references to the past and he acknowledged he was not aware of the original actions taken. He was only going by the responses he had personally received and they were overwhelmingly in favor of maintaining the Police and Fire Departments. No one likes an increase in taxes, but the value of the services provided has to be considered and the $12 per year was minimal for the essential benefit to the residents. Vote The motion passed 3 -1 (Commissioner McCray dissenting). Adiournment There being nothing further to come before the Commission, Mayor Taylor properly adjourned the meeting at 6:21 p.m. (Continued on next page). 4 MEETING MINUTES SPECIALCITY COMMISSION MEETING BOYNTON BEACH, FLORIDA ATTEST: t M. Prainito, MMC y Clerk ) ith A. Pyle, CMC puty City Clerk 5 CITY OF BOYNTON BEACH Mack McCray, Commission September 11, 2014 Michael M. Fitzpatrick, Commi.sioner