NORTHEAST TALLAHASSEE, FL (WTXL) — Leon County commissioners are preparing to weigh two options for the future of the county's fire service — and both paths could mean higher costs for taxpayers.
The county has released the agenda for a workshop scheduled for Tuesday, Oct. 20 to determine what comes next with fire service fees.
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A consulting firm is recommending commissioners take what it calls a dual-track process — simultaneously renegotiating a new contract with the city of Tallahassee while also creating a plan for a county-run fire service.
Leon County Board Chairman Christian Caban said he is optimistic about reaching a deal with the city as Election Day approaches.
"It says after five years, we'll be able to provide service cheaper than what the city is currently allowing it to be. I'm confident that we'll be able to get to where the new government at City Hall found a good common ground to have a new agreement. But if not, I think we'll be able to provide fire service at the highest quality that's also affordable as well," Caban said.
Here is what each option could mean for taxpayers:
Renegotiating a contract with the city:
A contract renegotiation would present no disruptions to current fire services and no startup costs. However, the consulting firm projects annual operating costs to rise from $12 million to $18.8 million over five years. The city would have to agree to a new deal for this option to move forward.
A county-run fire service:
Building a county-run fire service would come with a $30 million startup cost — that includes the county buying 6 existing fire stations from the city. They’d also have to train and hire about 80 employees to staff them. It would also result in a lower ISO rating, which could increase insurance premiums. Annual operating costs under a county model are estimated at $18.7 million — not far off from the renegotiation estimate.
Regardless of which path commissioners choose, both plans require funding from the Fire Services Assessment Fee, and rates are expected to increase under both options.
Independent researcher Max Epstein, who has been researching the issue, said a county-run fire service would put too much of a burden on taxpayers compared to the initial point of contention where the city wanted to raise fire service fees.
"I know it's not great to hear you need to have a tax increase, but that is what it costs, and otherwise, if they go on their own, it's going to cost between two and three times as much," he said. "The only option is to renegotiate and get a new contract with the city, and there are certainly issues with how the fire fee is being collected."
Caban said the board plans to weigh all options going into Tuesday's workshop.
If commissioners move forward with the dual-path approach, staff would spend the next 90 days renegotiating with the city while simultaneously building a plan.
A final decision on what to do next would come in March.
Tuesday's workshop comes after Caban and Commissioner Bill Proctor held a press conference Monday, presenting an independent review of how the city of Tallahassee handled the billing, collecting and managing of fire service assessment money.
The findings came from financial consulting firm Benesch.
The firm said it found a revenue shortfall between $15.8 million and $21.2 million — a gap it said would have been enough to cover the budget increase the city needed during the initial raising of the rates.
Benesch reports the city billed inconsistently — underbilling the airport, city hall and the police department; exempting religious institutions; and finding missing months of billing and some individual accounts billed multiple times in a single month.
The city provided a statement in response:
"We are actively engaged in a dispute resolution process initiated by Leon County regarding the expiration of the interlocal agreement under which the City provides fire services to the County. The City will defend itself against all accusations and allegations made by Leon County," City Attorney Amy Toman said.
Caban is now requesting a state audit.
The Oct. 20 workshop starts at 3 p.m.
Commissioners are set to look at current levels of service and compare other cities' fire service contracts.
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