By Marvin G. Cortner

Editor

The Osceola County Commission late Wednesday afternoon after several failed motions passed new fire assessment rates and approved buy-downs that will help small businesses in the unincorporated area deal with fee increases.

The buy-downs include the $1.939 million for institutions and tax-exempt property – such as schools, churches and social service agency offices – that commissioners approved in July as well as $942,750 of additional buy-downs for commercial and industrial/warehouse properties, for a total of about $2.88 million. The money for the buy-downs – $763,000 for commercial space and $179,750 for industrial/warehouse space – will come from the county’s general fund, which is generated through property taxes.

Wednesday’s public hearing on the fees was continued from Tuesday.

In addition, the county will establish a program whereby residential property owners can request a hardship waiver of the amount of their fire fee increase compared to last year, which would be about $10, county officials said.

The new rates are less than what property owners saw on July’s Truth in Millage, or TRIM, notice – anywhere from 2.3 to 19.4 percent less, depending on the kind of property.

Voting for the recommended rates with the buy-downs were Commissioners John Quiñones, Ken Smith and Fred Hawkins Jr. Commissioners Michael Harford and Brandon Arrington essentially voted for the new rates but against any additional buy-downs.

The buy-downs will not reduce Osceola County Fire Rescue’s $23.9 million budget; however, the county must still determine in its own 2010-11 fiscal year budget how to pay for the extra amount. The final public hearing on the county budget as well as the Fire Rescue budget will be Sept. 22.

In addition, county officials are still working with the firefighters’ union over a 3 percent pay cut, which would be equivalent to the two-week furlough that county administration staff will take in the next fiscal year to help balance the county budget. That firefighter pay cut would put $663,000 back into Fire Rescue’s budget and could be used in some way to offset part of the additional buy-down, county officials.

The new rates

Owners of residential property under the new rate structure will pay $163.22 per home/unit. The new rate for commercial property will be 28.7 cents per square foot of building, but with the buy-down, the rate will drop to 23.47 cents; the rate for industrial/warehouse property will be 7.84 cents per square foot, but with the buy-down, it will be 5.33 cents.

The fee for hotels, motels and timeshares (referred to as transient properties) will be $161.68 per room/unit/space. Owners of agricultural land will pay 2.31 cents per acre while owners of vacant land will pay 18.78 cents per acre.

Commissioners’ positions

Commissioners, before reaching the final compromise on the fees, voted down several motions, including one for a $4 million buy-down involving all property classes and one that would have allowed all property owners to apply for a hardship waiver for the fee increase.

Arrington – as he did on Tuesday – called the buy-downs a “shell game” whereby the costs of fire service for certain special interest groups was being shifted onto all property owners.

“It’s an admirable position to take – to protect commercial and industrial property owners – but it’s still a shell game,” Arrington said. “Last year, we said we had to protect the ag community.”

Arrington also said the county staff and a task force invested two years in coming up with the new rates and that not making property owners pay for the actual cost of the service after all the effort was a mistake. He did, however, say he would support a buy-down for all property owners.

Harford said he supported the new rates as recommended by county staff because they “reflect the level of service” wanted by residents and property owners.

“Am I happy about raising the fee? No, I am not,” he said.

Quiñones said the additional buy-down would be difficult for the county to deal with on the short-term because of anticipated revenue shortfalls next year, but that in the long term, it would stimulate economic development.

“We need to do something to stop businesses from shutting down,” Quiñones said. “That is what it boils down to.”

Hawkins, as he did Tuesday, supported the additional buy-down as a way to preserve local jobs and to help existing businesses stay in business.

After three failed motions, it was County Attorney Jo Thacker who suggested the commission adopt the waiver program as a compromise.

Mike Horner, president of the Kissimmee/Osceola County Chamber of Commerce, applauded the commission for approving the additional buy-downs.

“Preventing an increase in fire fees has been a major focus for the chamber and freezing the fire fee protects Osceola County’s economy,” Horner said. “We want to thank Commissioners Hawkins, Quinones and Smith for looking out for employers.”