GB Chamber defers on Midway Fire fee support
BY JOE CULPEPPER Gulf Breeze News joe@gulfbreezenews.com

Faced with a projected budget shortfall of $430,000 for fiscal year 2008-09, Midway Fire District was poised earlier this week to bring a second fire assessment fee proposal in seven months before voters in the Aug. 26 primary.

Midway Fire sought the Gulf Breeze Area Chamber of Commerce's formal blessing last week, saying it would be "folly" to move forward with another referendum without the business community's support.

Monday, the Chamber informed Midway Fire it would not officially consider an endorsement until after the issue reaches the August ballot.

Midway Fire hoped to receive Chamber support prior to Tuesday night, when Commissioners were scheduled to meet and likely decide whether to approve the referendum.

"The Chamber's Governmental Affairs Committee and the Board felt like we needed more information before we could make a decision in either direction," said Meg Peltier, Executive Director of the Gulf Breeze Area Chamber of Commerce. "We need to know more of the numbers and how the assessment would affect businesses."

Shortly before the January referendum, the Chamber came out against Midway Fire's proposed fire assessment fee that would have added to its coffers significantly more funding than it receives in ad-valorem taxes and impact fees. Voters overwhelmingly rejected the proposal by more than a 4-to-1 margin.

Now, Midway Fire hopes to recoup enough funding to maintain its current level of staff and service in the wake of January's passage of property tax reform measure Amendment 1.

"We knew this would be a potential problem," Midway Fire Chief Steve Demeter told the Chamber's Governmental Affairs Committee on Wednesday, June 4.

"The idea behind the Jan. 29 referendum was to head this off. Now, our worst fears have come true. We're going to lose about 20 percent of our budget. That's a tremendous hit for the District.

"The Midway Fire Commission is not going to move on anything unless there is support from the Chamber," Demeter said. "We know it won't pass, given the current economic conditions, unless there is support from the business community."

Midway Fire was stung just 41/2 months ago when the Chamber urged voters to reject a referendum that sought to fund fire protection services and facilities with non-ad valorem assessments of $224 per dwelling unit for residential property, 38 cents per square foot for commercial property, 7 cents per square foot for industrial/ warehouse property, and 42 cents per square foot for institutional property.

Midway Fire now is proposing to assess non-ad valorem taxes of $42 per dwelling unit for residential property, 7 cents per square foot for commercial property, 2 cents per square foot for industrial/warehouse property, and 8 cents per square foot for institutional property.

The fee would not apply to churches, governmental buildings or not-for-profits.

An appeals process would be developed whereby homeowners or businesses with hardships could appeal directly to the Midway Fire Commission for a reduction or waiver of the fee. Commercial properties that feel they are actually storage or industrial also could appeal to the Commission for re-classification.

Future increases would be limited to the annual growth rate in Florida personal income for the previous five years.

"We feel like it's a good compromise," Midway Fire Commissioner Buck Thackeray said. "It's realistic, and it doesn't reduce our capabilities.

"This is a step we probably should have taken before Amendment 1 passed. But without the Chamber's initial agreement that this is a good way to go, it is kind of folly to try to sell it anywhere else. We just won't do it."

The Governmental Affairs Committee agreed last week to provide the Chamber membership with information about the Fire District's operating costs and needs. Members then were asked to respond via e-mail whether they would support or reject such a referendum. Fewer than six percent of Chamber members responded.

Critics contend Midway Fire has not been aggressive enough in tightening its belt or exploring other revenue-generating or saving initiatives - such as selling unused land or reducing family medical benefits.

"Some members feel there still is some duplication of services, and they feel strongly there are some areas where Midway Fire could cut," Peltier said. "There are a lot of sacred cows that the fire department has that maybe need a second look."

Midway Fire, in turn, said no raises were given in 2007. It trimmed operating expenses by $100,000 for fiscal year 2008- 09. Two personnel were laid off in February, and three positions left vacant by employees who quit after the failed January referendum have not been filled. Overtime is not being paid.

"Everybody in the Chamber wants good fire services and really feels for them," Peltier said. "But, again, a lot of our own businesses are facing a lot of the same issues for a variety of reasons. Everyone is having to make cuts in these economic times."

Should Midway Fire fail to push this latest proposal through to voter approval, it planned to cut four additional staff positions from the budget. Demeter said one of the District's response units would be taken out of service.

Midway Fire currently staffs 21 personnel. It recently attained a county-best ISO rating of 3 in a system established by the Insurance Services Office that rates fire protection on a scale of 1 to 10, with 10 being the worst.

Should staffing fall below 18, the District fears its ISO rating would be revised upward. Better ratings often translate into savings on consumer insurance rates.

The most significant result of cutbacks would be slower response times. Midway Fire averages 4.5 minutes in response time to calls.

"You probably wouldn't see a big difference in that until we get into a multiple-call scenario," Demeter said. "If we lose any more people, we're going to have to take units out of service. We just wouldn't have the personnel to staff all our response units."

Midway Fire has mutual-aid agreements with Gulf Breeze Fire, Pensacola Beach Fire and Holley-Navarre Fire, who can assist if necessary.

Another drawback would be safety. Fewer personnel at a fire increase the likelihood of injury, the District contends.

"If we can't get this, there will be times when there are only four firefighters available - two to go into a fire and two to assist," Demeter said. "That would represent a bare-bones, minimum staff. We'd anticipate more injuries and worker's comp claims."

In 2007, there were 47 residential and 13 commercial fires. So far in 2008, there have been 16 residential fires and six commercial fires. Those numbers do not include false alarms.

"Fires are about 8 percent of our business," Commissioner Joe McPherson told the Governmental Affairs Committee in May. "The fire department really isn't a fire department as much as it's a safety, emergency service department. We're the people citizens call when they don't know what to do." COMPARING JANUARY TO AUGUST

Jan. 29 referendum

Sought to fund fire protection services and facilities with non-ad valorem assessments of $224 per dwelling unit for residential property, 38 cents per square foot for commercial property, 7 cents per square foot for industrial/warehouse property, and 42 cents per square foot for institutional property.

Failed: 81 percent to 19 percent

Proposed Aug. 26 referendum

Would seek to fund fire protection services and facilities with non-ad valorem assessments of $42 per dwelling unit for residential property, 7 cents per square foot for commercial property, 2 cents per square foot for industrial/warehouse property, and 8 cents per square foot for institutional property, with a provision for annual increases.