Parameters of Fire Readiness Fee Approved

A day after Mayor Bill Foster during the final budget summit, City Council approved the parameters for to close the budget shortfall in fiscal year 2013. 

Despite public support for a millage increase over service cuts and a readiness fee, council voted, 5-2, for a fire assessment fee that would generate $10 million each year. 

The approval is just for the parameters of implementing a fee, but is not an official city ordinance yet. The first reading of the readiness fee will be June 21 with the public hearing set for July 12. 

City council members saw the readiness fee as a more stable and safer alternative than a property tax hike. With the fee, Foster said the city would not need to increase the millage rate. 

"I would not need to propose a millage rate increase with the motion the floor," Foster told council Thursday.  

Mark Lawson, an attorney with Bryant Miller Olive, told the Council the fire readiness fee would be set up in two tiers; a per parcel fee and a fee based on relative improvement value as determined by the Property Appraiser’s Office.

Council approved a 75/25 split Thursday with 75 percent of the revenues coming from the per parcel fee. With 105,000 taxable parcels in the city, Lawson said that means each parcel would pay $75 a year. The other quarter of the revenues to be generated with the fee will be relative per household improvement value. 

Within the next week the city said it would have a feature on the city's website where you can put in your address to see what your property's relative improvement value is. 

Council member Jim Kennedy said he supported the fire readiness fee over the millage increase because raising the millage could stymie or discourage business in St. Petersburg. The fee, Kennedy said, is not hurt with economic swings. 

"I think this is a good tool for us to use at this point in time," Kennedy, "It diversifies (our) revenues."

The fee also gets more people on the tax rolls. Churches, non-profits and all businesses would pay the fee. 

"It’s a tax, (but) now where it’s different and where I am comfortable recommending this; it's a fee on everybody," Foster said. "To where every single person receiving the benefits of libraries, police, fire, parks, pools ... everyone receiving these benefits will pay something. Even if it's $5 a month, at least they are paying something."

Revenues collected from the fire readiness fees would solely go toward the fire department, not the general fund, police or EMS. 

Council members Wengay Newton and Steve Kornell were the two council members who opposed the measure. 

Newton said the fee is dishonest and goes around the Homestead exemption many property owners enjoy. He said since the council seemed to want to stray away from raising the millage, the shortfall should be filled with one-time rainy day funds. 

Using one-time monies during a recession, Newton said, is what the rainy day fund it for. "It's raining," he said. 

His motion to use $10 million in reserves died for lack of a second. 

Council also took a separate vote Thursday, 6-1, to approve that all future ad valorem taxes (property taxes), all go to fund the St. Petersburg Police Department. 

Council member Karl Nurse said St. Petersburg residents understand that with the plunge property values, and taxes, took during the recession that an increase in revenue is a necessity. 

"What we’ve done for five years is freeze wages, lay off people and cuts services," Nurse said. "And I think the public is very clear that it’s time to stop that. The truth is, we have to be adults and say 'we want these services and we have to pay for them.''