New fire fees are too high

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New fire fees are too high

Opinions

Wednesday, 02 June 2010 11:55

Horner-Mike-2009

Horner

Mike Horner
Chamber of Commerce

Osceola County should reconsider the proposed new fire fees that will place an unacceptable burden on small businesses.
At the outset, I want to commend Osceola County on the process it used to develop the new fees. The county brought together a broad cross section of stakeholders and residents to rework the fire fee structure. I know everyone worked hard and the product produced will indeed fund the fire budget and likely pass legal muster. Unfortunately, those good intentions have yielded an outcome that hits employers too hard and shifts too much of the tax burden from larger properties to smaller ones.

Let me offer some examples of how the new fees will affect actual Osceola County businesses. Here are the fire fee amounts by business type/size, for the years 2005-09, 2009-10 and the proposed new fee:
• Small manufacturer – 10,000 square feet: $400, $500 and $7,441.
• Large manufacturer – 100,000 square feet: $4,000, $5,000 and $22,943.
• Small warehouse – 10,000 square feet: $400, $500 and $1,936.
• Large warehouse – 100,000 square feet: $4,000, $5,000 and $6,404.
• Small retail – 20,000 square feet: $3,800, $4,400 and $9,921.
• Large retail – 150,000 square feet: $28,500, $33,000 and $28,523.
• Small hotel – 50 rooms, $7,335, $8,204 and $6,565.
• Large hotel – 1,000 rooms: $146,700, $164,090 and $30,640.
• Small restaurant – 3,500 square feet: $665, $770 and $4,340.
• Large Restaurant – 7,000 square feet: $1,330, $1,540 and $6,200.
I know that the County Commission is doing everything possible to improve the county’s economy. Economic development has been one of the commission’s top priorities. But I want to remind the commissioners that protecting and growing existing businesses is less expensive than recruiting new ones. I fear the new fees will cripple or drive out our emerging businesses that are currently providing the jobs our county’s residents desperately need.
Right now, Osceola County’s small businesses are struggling to make ends meet. They have cut costs, exhausted their reserves and laid off staff. These businesses have reached the breaking point. For many, adding a significant fee increase would be the last straw.
I would like to offer the following suggestions to reduce the fees on small business:
1. Implement a targeted “buy down” of the fire fees for small businesses and other specific industries. The county has discontinued its traditional practice of using $4 million in general fund revenue every year to reduce the fees on industries vital to our economy. By ending this practice, the new fire fee becomes, in essence, a tax increase.
2. Modify the “methodology.” Osceola County employs some of the brightest local government staff in the state. I am confident that they can adjust the way fees are calculated to reduce the impact on small business. If assistance is needed, the Kissimmee/ Osceola County Chamber of Commerce is willing to hire outside experts to help in the effort.
3. Reduce the fire budget. The last thing we should do in this uncertain economy is lay off firefighters, but I am convinced that the county can find other efficiencies in its fire service to save money.
4. Break up payments. In this economy many businesses cannot afford to make a massive lump-sum payment. Create an option for businesses to pay the fees monthly or quarterly.
I am aware of the possible objections for a call to rework the fire fees. Some will argue that it “can’t be done,” or that it is “too late.” Yes, it won’t be easy, but with sufficient political will, the county can ease this hardship on our small businesses. Protecting our businesses and our residents’ jobs is worth the effort.
Mike Horner is president of the Kissimmee/Osceola County Chamber of Commerce.