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Res 02-12 (DENIED)
RESOLUTION NO. 02 -12 RESOLUTION OF THE CITY COMMISSION OF DELRAY BEACH, FLORIDA ADOPTING A SCHEDULE OF NON -AD VALOREM ASSESSMENTS FOR FIRE RESCUE OPERATIONS AND FIRST RESPONSE FOR THE FISCAL YEAR 2011 -2012 AND ANNUALLY THEREAFTER. WHEREAS, Sections 197.3632 and Commission for the City of Delray Beach, ( "the assessments for the purpose of funding fire rescue WHEREAS, all notices required by to utilize the county tax roll for collection of of local circulation within Palm Beach Cou& WHEREAS, on Novembeq Resolution No. 49 -11 deter irning to assessments; and WHEREAS, a determined to go fo final hearing for J WHEREAS, taxable 197.361 a report by schedule, a< equitable, fair and a property owners; and 170.201 to levy anM kt response; authorize the City Less non -ad valorem in order in,Mruy newspaper :6- mmission adopted said non -ad valorem amber 15, 2011, the Commission -ad valorem assessments and set a notices and notice by publication to all owners of �en prepared and served as required by Sections reard all testimony and considered all evidence including -9 the proposed assessment methodology and assessment as Attachment A (the Burton Report); and lfimission has determined the proposed schedule of assessments is assessments in accordance with the benefit received by individual WHEREAS, all improved property within the City of Delray Beach is benefitted by fire rescue services and first response by increased property values and reduced fire insurance rates; and WHEREAS, the benefits of the assessment substantially exceed the financial burdens of the assessment; and WHEREAS, assessments will be levied proportionately on assessable property based upon the proportion of benefits received. NOW THEREFORE BE IT RESOLVED BY THE CITY COMMISSION FOR THE CITY OF DELRAY BEACH: Section 1. That the Burton report assessment methodology, costs, benefits, equitable apportionment and schedule of non -ad valorem assessments ed to be levied against all assessable, non- exempt property within the City is hereby ap 6pted. Section 2. That the said assessments shall be fiscal year 2011/2012. Section 3. That the said assessments Collector for fiscal year 2012/2013 and annually Section 4. That this resolution PASSED AND ADOPTED i by the Delray Beach for County Tax V 1(_E_M A Y U It 2 Res No. 02 -12 Coversheet MEMORANDUM TO: Mayor and City Commissioners FROM: R. Brian Shutt, City Attorney DATE: January 10, 2012 Page 1 of 1 SUBJECT: AGENDA ITEM 10.A. -REGULAR COMMISSION MEETING OF JANUARY 17 2012 RESOLUTION NO.02- 12/FIILE ASSESSMENT FEE ITEM BEFORE COMMISSION Approval of Resolution No. 02 -12, providing for a fire assessment fee, if adopted, to be placed on the property tax bill for the fiscal year beginning October 1, 2012 and providing for a fire assessment fee for fiscal year 2011/2012 to be direct billed by the City. BACKGROUND While considering the City's budget for Fiscal 2012, after cutting some $4,300,000 from departmental budget requests the Commission decided that it would be more fair to institute a fire assessment fee to raise the additional $3,200,000 needed to balance the budget, rather than increasing the property tax by approximately 0.55 mills. Therefore the adopted budget for FY 2012 includes $3,200,000 in revenue from a fire assessment fee. The proposed assessments will raise this amount, based on an assumed 95% collection rate. Resolution 2 -12, if adopted, provides for the placement of a fire assessment fee on the non -ad valorem tax roll starting with the fiscal year beginning October 1, 2012 and for direct billing of a fire assessment fee by the City for fiscal year 2011/2012. This fee would recover a portion of the annual cost the City spends on providing fire protection service to properties within the City. Based on the direction the Commission gave at its November 15, 2011 Commission meeting, the rate for residential and non- residential assessments is based on a tiered approach according to the square footage of the property. The fire rescue assessment study final report sets forth the methodology used. If the Commission approves the resolution the City will bill the property owners for the assessment for fiscal year 2011/2012. Thereafter the assessment will be on the Palm Beach County non -ad valorem assessment roll and billed on the annual property tax bill. RECOMMENDATION Staff recommends adoption of the Resolution. http:// itwebapp/ Agendalntranct /Bluesheet.aspx ?ItemID= 5282 &MeetinglD =342 1/18/2012 RESOLUTION NO. 02 -12 RESOLUTION OF THE CITY COMIVIISSION OF DELRAY BEACH, FLORIDA ADOPTING A SCHEDULE OF NON -AD VALOREM ASSESSMENTS FOR FIRE RESCUE OPERATIONS AND FIRST RESPONSE FOR THE FISCAL YEAR 2011 -2012 AND ANNUALLY THEREAFTER. WHEREAS, Sections 197.3632 and 170.201 Florida Statutes authorize the City Commission for the City of Delray Beach, ( "the Commission") to levy and assess non-ad valorem assessments for the purpose of funding fire rescue services and first response, and WHEREAS, all notices required by Section 197.3632 and 170.201 Florida Statutes in order to utilize the county tax roll for collection of assessment have been published in a daily newspaper of local circulation within Palm Beach County as required by law, and WHEREAS, on November 15, 2011, at a public hearing the Commission adopted Resolution No. 49 -11 determining to use the county tax roll to collect said non-ad valorem assessments; and WHEREAS, at the conclusion of the hearing on November 15, 2011, the Commission determined to go forward with the adoption of a schedule of non-ad valorem assessments and set a final hearing for January 17, 2012; and WHEREAS, all individual first class mail notices and notice by publication to all owners of taxable property within the City of Delray have been prepared and served as required by Sections 197.3632 and 170.201 Florida Statutes; and WHEREAS, the Commission has heard all testimony and considered all evidence including a report by Burton & Associates regarding the proposed assessment methodology and assessment schedule, adopted and included herein as Attachment A (the Burton Report); and WHEREAS, the Commission has determined the proposed schedule of assessments is equitable, fair and allocates assessments m accordance with the benefit received by individual property owners; and WHEREAS, all improved property within the City of Delray Beach is benefitted by fire rescue services and first response by increased property values and reduced fire insurance rates; and WHEREAS, the benefits of the assessment substantially exceed the financial burdens of the assessment; and WHEREAS, assessments will be levied proportionately on assessable property based upon the proportion of benefits received NOW THEREFORE BE IT RESOLVED BY THE CITY COMMISSION FOR THE CITY OF DELRAY BEACH: Section 1. That the Burton report assessment methodology, costs, benefits, equitable apportionment and schedule of non-ad valorem assessments proposed to be levied against all assessable, non exempt property within the City is hereby approved and adopted Section 2. That the said assessments shall be collected by the City of Delray Beach for fiscal year 2011/2012. Section 3. That the said assessments shall be collected by the Palm Beach County Tax Collector for fiscal year 2012/2013 and annually thereafter. Section 4. That this resolution shall be effective upon adoption PASSED AND ADOPTED in regular session on the 17"' day of January, 2012. Attest: City Clerk MAYOR 2 Res No. 02 -12 ��ar BFgey City of Delray Beach Fire Assessment Study City Commission Meeting January 17, 2012 Presentation of Results Presented by: Additional Information for Item 10.A. Introduction of Burton &, Associates Burton & Associates Firm Background Multi -year financial planning and rate services to local governments since 1988 Fire Assessment development has been a significant portion of our practice over the past ten years Some of our Fire Assessment clients Brevard County, Lauderdale -by- the -Sea, Deltona, Cape Coral, Orange Park, New Port Richey Some of our clients in the Southeast Florida area Fort Lauderdale, Lake Worth, Coconut Creek, Lauderdale -by- the -Sea, Davie, Coral Springs, Key Biscayne Project Staff Mike Burton — President & Project Director Andy Burnham — Senior Vice President & Project Manager ----------------------------------_----------------------------_--_---------------_----------------------------------------- EURTQN &A QC[ATES Additional Information for Item 10.A. Project Scope > Develop a Fire Assessment Program for the City: Identify an assessment rate structure to achieve a fair and equitable relationship between: The benefit received by properties, and The cost burden of the assessment Develop a ten -year Fire Service financial management plan Prepare the assessment roll, final report, and provide implementation assistance �URTQN & Ass o- tA GT ES Additional Information for Item 10.A. Background Fire Assessments are an alternative revenue source to more fairly recover the cost of Fire /Rescue Services Emergency Medical Services (EMS) costs cannot be included in a Fire Assessment per a Florida Supreme Court decision Fire costs must be apportioned to properties based upon benefit Benefit criteria include: Watch Standing Benefit —The maintenance of facilities, equipment, and personnel to provide fire suppression services within acceptable response times — 99% of Fire Costs Service Benefit —Actual calls for service made to property classes: - of Fire Costs (marginal costs of making calls, primarily fuel) --------------------------------------------------------------------------------------------------------------,-------.------- ...... BURTON & Associwm Additional Information for Item 10.A. The Analysis r . , .q Cost determination Performed a detailed allocation of Fire Rescue costs to Fire and Emergency Medical Service (EMS) Included only Fire costs in the Fire Assessment Property data Provided by the Palm Beach County Property Appraiser Compiled into a Fire Assessment database Used Department of Revenue (DOR) land use codes to: Determine allocation of costs to residential and non - residential property classes based upon square feet of developed space Determine properties to be exempted or excluded from the Fire Assessment (described on next slide) Database used to calculate assessment rates by property class and specific assessments for each parcel and prepare the Fire Assessment roll upon approval 5 _.....___. .............. _........_._...._. B"URTaN & AssociAT'Es Additional Information for Item 1 0.A. The Analysis Property data (Cont'd) Exempted property classes (not included in the cost apportionment) Vacant Religious institutions Public County schools Federal buildings Rivers and lakes, right -of- way /buffers, etc. Excluded property classes (included in the cost apportionment but not included in the assessment roll) Districts City property County property ------------------------------------------------------------------------------------------------------------------- _- _ - - - -_. __. _. __ ............. BURTQN & AssociAns Additional Information for Item 10.A. Residential Assessment Rates RESIDENTIAL REVENUE ALLOCATION RESIDENTIAL ALLOCATION $ 2,658,064 TOTAL RES ASSESSMENT $ 2,658,064 Tiered Rate Structure BlockTop Frequency ERU #of 1,000,000 369 3.09 1,140 $ 263.00 5,000 930 2.19 2,037 $ 186.00 3,500 5,273 1.42 7,488 $ 121.00 1,200 14,214 0.61 8,671 $ 52.00 32,986 31,535 _..-_. ------- ..--------------_- _--- ____- _- _- _-- __- __--- __ ---- - __- - - - --- -_--__------_---_---__------_---____---_____-------____- BURTON & IQSS©CIATES Additional Information for Item 1 0.A. Non - Residential Assessment Rates NON - RESIDENTIAL REVENUE ALLOCATION NON - RESIDENTIAL ALLOCATION $ 765,762 TOTAL NON - RESIDENTIAL ASSESSMENT $ 765,762 Tiered Rate Structure ,. 48 2.50 of $ 592.001 1,000,000 72 15.00 1,080, $ 3,552.00 50,000 19 12.50 238 $ 2,960.00 40,000 23 10.00 230 $ 2,368.00 30,000 43 7.50 323 $ 1,776.00 20,000 41 5.00 205 $ 1,184.00 10,000 48 2.50 120 $ 592.001 8,000 91 2.00 182 $ 474.00 6,000 139 1.50 209 $ 355.00 4,000 114 1.00 114 $ 237.00 3,000 221 0.75 166 $ 178.00 2,000 305 0.50 153 $ 118.00 1,000 127 0.25 32 $ 59.00 500 731 0.13 95 $ 31.00 2,044 3,407 -------------------------------------------------------------------_-__------_---------------_------------------------------ BURTON & ASSOCIATE$ Additional Information for Item 10.A. Assessment Revenue Summary RESIDENTIAL ASSESSMENT REVENUE 216581064 NON - RESIDENTIAL ASSESSMENT REVENUE 7651F762 TOTAL REVENUE (1) $ 3,423,826 (1) Equals approximately 16% of annual fire protection service costs FY 13 Revenue Distribution 15.7 16.0% Fire Assessment General Fund s _ _ E' URTQN & ASSOC{ATEs Additional Information for Item 1 0.A. Survey FY 2011 & 2012 Fire Assessment Fee Comparison Survey Hollywood Deerfield Beach Fort Lauderdale Coral Springs Pompano Beach Boynton Beach Boca Raton 0 20 40 60 8 100 120 140 160 180 Boca Raton Boy Pompano Beac Coral Springs Fort Lauderdale Deerfield Bea 0 FY 2012 Fee 80 88 128.77 135 143 0 FY 2011 Fee 60 68 114.84 135 143 Delray Beach Proposed Average Residential Assessment ------------------------- ----------------------------------- Additional Information for Item 1 O.A. Recommendations Consider adoption of Fire Assessments as presented herein Residential Tiered rates by the amount of developed square feet per unit on each parcel Non Residential Tiered rates by the amount of developed square feet on each parcel Financial plan Review the assessments periodically to ensure adequate financial resources to fund all fire costs Fire Assessments Other operating revenue (payments from other communities served) General Fund ----------------------------------------------------------------------------------- ----- -------------------- - - - - -- I ---- - - - - -- 0U'RTQN & AsSOOlATES Additional Information for Item 10.A. Discussion Ev�ro.v &'*'** ssoe�ArEs Additional Information for Item 10.A. Projected Revenues At aoii millage rate (7.19) Each i /ioth mill equals $89,016,810 $582,568 Additional Information for Item 10.A. Projected Expenses Initial Budget Requests Net cuts made Remaining Expenses Balance needed at 7.19 mills $96,953,030 $4.210.050 $92,742,980 $3,726,170 Additional Information for Item 10.A. Lqw_J Vudget Grants Increase Parking Fees Increase Parks and Planning Fees Fire Service Assessment Or increase the millage 0.55 mills Total Revenue Increase 3131360 204,100 40,420 3,168,290 $3,726,170 Additional Information for Item 1 0.A. Has the City Cut It's Expenses? 2007 Property Tax Revenue 2 012 Property Tax Revenue A 23% reduction in property taxes 2007 General Fund Budget 2012 General Fund Budget $59,021,613 $45,460,725 $103,115,460 $93,356,270 Additional Information for Item 10.A. Actions Taken to Cut Costs Offered early retirement for General Employees Eliminated or frozen positions Increased employee pension contributions Reduced General Employee pension benefits Frozen salaries and wages Eliminate two paid holidays for Fire and Police Reduced Retiree Health Trust contributions Reduced energy usage Reduced use of overtime Additional Information for Item 1 0.A. Frequently Asked Questions (FA Qs) Q: What is the Fire Assessment Fee? A: The Fire Assessment Fee is a new proposed fee that will fund fire related services only (i.e., fire station facilities, equipment, trucks) similar to fees charged in neighboring cities (i.e., Boca Raton, Boynton Beach, West Palm Beach, etc.). The total amount of revenue estimated to be collected from the fee is $3.34 million per year, which is only a portion of the $18.9 million of fire- related expenses in the Fire - Rescue Department's operating budget for Fiscal Year 2012. This revenue will not increase the Fire - Rescue's budget or salaries. Instead, it provides a new revenue source to offset the decline in other revenue sources, such as property taxes. Q: Why is this being done? A: The City's funding from property taxes, a main source of City revenue, has decreased significantly because of the decline in home values, extra property tax exemptions and an increase in homestead exemptions that were approved by the State Legislature. Currently, there are over 600 property owners who pay no property taxes to the City and almost 6,000 properties that pay $200 or less. If a property is valued below $50,000 and it qualifies for the $50,000 homestead exemption, that property will pay no City property taxes. Further, if the City Commission had raised the Ad- Valorem (property) tax rate, the property owners who currently pay no taxes would continue to pay no taxes. The Fire Assessment Fee (a Non Ad- Valorem fee) helps ensure that all homeowners contribute and creates a more fair system. This fee will also assist in maintaining the high level of service the City provides and will also help to maintain the insurance rating level that lowers homeowner insurance rates for the community. Q: What happens if I don't pay, will Fire - Rescue still respond? A: Absolutely. Fire - Rescue will respond to a call regardless of whether the fee is paid. If the assessment is not paid for Fiscal Year 2011/2012, a lien may be placed on the property. If the bill is not paid in future years, a tax certificate will be issued against the property. Q: What does Non Ad- Valorem mean? A: Non Ad- Valorem is a fee that is not calculated based on property value. Q: How is the fee determined? A: The Fire Assessment is calculated based on on -site building square footage of all improvements on the property (see table below). The square footage that has been identified for each parcel of property (residential and commercial) was provided by the Palm Beach County Property Appraiser's Office: www.pbcgov.com /papa/ (Note: Information on finding the square footage for all structures on each property can be found at the bottom of this FAQ document). Residential Size Rar*_ge i,Deveiopes'Sq. Ft.'r Assessment Amount > = 1, U J J $263 3,501— 5,000 $186 2,001— 3,500 $121 1,201 — 2,000 $85 1,100 and less $5r 'ion Re= identlal Size Rare (Developed Sq. Ft.) Assessment Amount Sire Range (DevelapedSq. Ft.) Asses_ -meet Amount }50,000 $3,552 6.001 — 8,000 $474 40,001— 50,000 $2,960 4,,001— 6;000 $355 30,001— 40,000 $2,368 3,001— 4,000 $2'37 20,001— 30,000 $1,776 2,001— 3,000 $178 15,001= 20,,000 $1, 184 1,0€11— 21000 .$118 10,001 — 15.000 5888 5()1-1,000 $59 8,001 - 10,000 $592 500 and less " �1 Q: How much will this cost me? A: The amount of the Fire Assessment Fee is identified in the chart above and is based on the on -site building square footage for all improvements on a parcel of property. Further, this information was outlined in a notarized letter that was sent to all property owners within the City in December 2011. Q: Will this reduce my taxes? A: No. However, it will provide an additional, stable revenue source for the City when property tax revenues are declining due to falling home values. Q: Does this apply to both commercial and residential properties? A: Yes. There are tiered rate tables (see above) based on on -site building square footage for all improvements on a parcel of property. The tiered rates provide for a more fair payment system, which is based upon the need for fire service readiness for various sized structures within the City. Q: Why is a Public Hearing being held? A: The Public Hearing is an opportunity for property owners to voice their comments and opinions to the City Commission about the proposed Fire Assessment Fee. The Public Hearing for this proposed fee has been set for Tuesday, January 17, 2012, at 7 pm in City Hall, 100 NW 1 st Avenue. You may also send your comments in writing to the Commission within 30 days of the date of the notice /letter that was mailed in December 2011. Q: Why does the letter that was mailed in December 2011 mention a first Public Hearing and a final Public Hearing? A: The January 17th Public Hearing is planned to be the only Public Hearing. However, if the Commission decides to defer a decision and/or obtain additional public comment, another Public Hearing could be scheduled. After public comments have been heard and the Public Hearing is closed, the City Commission will make a decision regarding implementing the proposed Fire Assessment Fee. Q: When do I have to pay this? A: If the City Commission adopts the fee, owners will receive a bill in the mail for the Fiscal Year 2011/2012 (current year). The fee will then be included on your property tax bill that is provided by the Palm Beach County Tax Collector beginning in the Fall of 2012. Q: Why has the City not advertised or notified the public of this issue previously? A: The City has made multiple efforts to notify the public of this proposed fee. The proposed Fire Assessment Fee was discussed at various City Commissions meetings and workshops and was included in the September 2011 News for Neighborhoods newsletter that is provided in all utility (water) bills and posted on the City's website. In addition, the City prepared press releases that were issued on September 2, 2011 and on December 9, 2011. These press releases were posted on the City's website, sent out to all local media, Twitter followers and City E -mail subscribers. Further, the City included information about this proposed fee on the back of the January 2012 utility bill. A legal advertisement regarding the scheduled Public Hearing in accordance with state law was published on Monday, December 26, 2011 and Friday, January 6, 2012 in the Palm Beach Post. Q: Why is the letter written in "legalese" rather than in plain English? A: The letter, by state law, must meet various requirements. We apologize for any confusion that the letter has caused. The letter was sent out to all property owners and we included the contact phone number so the public could call and speak directly to staff about any concerns regarding the proposed fee. The City encourages everyone to read the letter and attend the Public Hearing or provide written comments to the City Commission. If you have any questions, contact the City's Public Information Office at (561) 243 -7190 or E -mail PIOQmydelravbeach.com. Tool for Checking Property Square Foot/Tax Bill The square footage used in the Fire Assessment calculation is a building square footage number (which may be less than the total square footage of improvements on a property). Building square footage includes all areas under a roof with areas such as a covered porch (without AC) included at a reduced square footage amount. The square footage number available on the Property Appraiser's website is a total square footage number which may be higher than the building square footage number used in the Fire Assessment calculation. To check the total square footage of all improvements on a parcel of property: • Go to the Palm Beach County Property Appraiser's website at http: / /www.pbcp,ov.com /papa/ • Click on "Record Search" in the upper left hand corner • You can then search by "Owner" or "Address" or Parcel Id number ( "P.C.N ") • Once you click on the property owner and/or address from the search results, you will go to an individual screen for that property. Scroll down towards the middle of the page and the property's square footage is provided under "Property Information" in the "Appraisals" section. • In addition, near the bottom of the page, you can click on the "Details" button in the Taxes section; this link provides a breakdown of a property tax bill (or if there is no information on this link, you can click over to the Tax Collector website on the link provided under the "Taxes" chart at the bottom of the page). A large portion of all annual tax bills for properties within the City of Delray Beach are paid to other governmental agencies (i.e., Palm Beach County, Palm Beach County School Board, South Florida Water Management District, Palm Beach County Health Care District, etc.) than the City of Delray Beach. City of Delray Beach SIRE RESCUE ASSESSMENT STUDY RNAL. REPORT January 4,, 2012 BURTON & AssociaEs Specialists in Governmental Economics 200 Business Park Circle, Suite 101 St. Augustine, FL 32095 (904) 247 -0787 CARTON & Associms January 4, 2012 Mr. David Harden City Manager City of Delray Beach 100 N.W. 1 st Avenue Delray Beach, FL 33444 Re: Fire Rescue Assessment Study — Final Report Dear Mr. Harden: Burton & Associates is pleased to present this Final Report of the Fire Rescue Assessment Study that we have performed for the City. We appreciate the fine assistance provided by you and all of the members of City staff who participated in the analysis. If you have any questions, please do not hesitate to call me at (904) 247 -0787. Very truly yours, Michael E. Burton President Enclosure Burtott & Associates 200 Business Park Circle, Suite 101 • St. Augustine, Florida 32095 • Phone (904) 247 -0787 • Fax (904) 241 -7708 E -mail: mburton @burtonandassociates.com FIRE RESCUE ASSESSMENT STUDY TABLE OF CONTENTS TABLE OF CONTENTS SECTION 1. INTRODUCTION ............................................................................ ............................... 1 1.1 OBJECTIVE AND SCOPE ...................................................................................... ............................... 1 1.2 STUDY PROCEDURES .......................................................................................... ............................... 1 SECTION 2. CALCULATION OF THE ASSESSMENT ................................... ............................... 3 2.1 BACKGROUND ..................................................................................................... ..............................3 2.2 ANALYSIS .......................................................................................................... ............................... 3 2.2.1 Cost of Service & Revenue Requirement ................................................. ............................... 3 2.2.2 Finding of Benefit .................................................................................. ............................... 13 2.2.3 Fire Service Cost & Revenue Requirement Allocation Based Upon Benefit Conferred....... 14 2.2.4 Fire Rescue Assessment Rate Classes ................................................... ............................... 16 2.2.5 Assessment Rate Struct ure ..................................................................... ............................... 19 2.3 RESULTS .......................................................................................................... ............................... 20 2.3.1 Residential Fire Rescue Assessment ...................................................... ............................... 20 2.3.2 Non - Residential Fire Rescue Assessment .............................................. ............................... 21 2.4 CONCLUSIONS & RECOMMENDATIONS ............................................................ ............................... 23 2.5 SURVEY OF OTHER JURISDICTIONS .................................................................. ............................... 25 2.5.1 FY 2011 & FY 2012 Survey of Fire Rescue Assessments ...................... ............................... 26 BURTON &ASSOCIATES City of Delray Beach Specialists in Governmental Economics Final Report FIRE RESCUE ASSESSMENT STUDY 1. INTRODUCTION SECTION 1. INTRODUCTION This report presents the results of an analysis to develop a non -ad valorem Fire Rescue Assessment Program (Fire Rescue Assessments) to recover the cost of fire protection services from properties that benefit from these services provided by the City of Delray Beach (City). The term "fire protection service" as used in this study refers to the twenty -four hours per day, seven days per week service for fire suppression provided by the City to properties located within its limits. This study was conducted by Burton & Associates, a firm that specializes in providing rate and assessment consulting services to local governments. 1.1 OBJECTIVE AND SCOPE The objective of this study was to develop Fire Rescue Assessments that would recover all or a portion of the annual cost requirement of providing fire protection service to properties within the City limits for FY 2012 and FY 2013. 1.2 STUDY PROCEDURES During this study we identified the full FY 2012 and FY 2013 cost components and revenue requirements (i.e. costs less offsetting revenues provided by other sources) for the provision of fire protection service that recognize the high level of service that has traditionally been provided. We accomplished this through interactive work sessions with City staff. During these work sessions, we performed a detailed allocation of all Fire Department costs and offsetting revenues to Fire Rescue Service and Emergency Medical Service (EMS)'. After isolating the Fire Rescue Service costs and offsetting revenues, we then calculated the recommended Fire Rescue Assessments presented in this report that will recover a portion of the revenue requirement for fire protection service for FY 2012 and FY 2013. ' EMS costs cannot be included in a fire services assessment based upon a Florida Supreme Court decision. BURTON & ASSOCIATES City of Delray Beach Specialists in Governmental Economics 1 Final Report FIRE RESCUE ASSESSMENT STUDY 1. INTRODUCTION In order to initiate our analysis, we obtained the City's historical and budgeted information for the Fire Department, including historical operating expenditures, the FY 2012 operating budget, and the capital improvement program. We then performed a line - item cost allocation to remove EMS costs in order to determine the cost components associated with providing fire protection service that could be recovered by a Fire Rescue Assessment Program. These costs were then adjusted based upon cost escalation factors reviewed with City staff to identify the projected FY 2013 fire protection service costs. To determine the FY 2012 & FY 2013 revenue requirements associated with providing fire protection service, we identified all costs associated with the provision of Fire Rescue Service and then deducted offsetting revenues from the full cost of service, such as revenues for service provided to the City of Gulf Stream and the City of Highland Beach. The fire protection service revenue requirement for FY 2012 was then apportioned to residential and non - residential properties based upon property data obtained from the Palm Beach County Property Appraiser's Office. Once the revenue requirement was apportioned between these property types, a Fire Rescue Assessment fee structure was developed for each property type, the results of which are presented herein. BURTON & ASSOCIATES City of Delray Beach Specialists in Governmental Economics 2 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT SECTION 2. CALCULATION OF THE ASSESSMENT This section presents the basis for and the results of the calculation of the Fire Rescue Assessments designed to recover a portion of the cost of providing fire protection services in the City. 2.1 BACKGROUND The development of a non -ad valorem assessment for fire protection service requires that the service for which properties are to be charged confer a special benefit on that property burdened by the special fee. Simply stated, there must be a logical relationship between the service provided and the benefit to real property assessed for the cost of this service. In order to satisfy this requirement, the costs associated with providing the service must be reasonably apportioned to the properties that receive a benefit from fire protection service in proportion to the benefit received. Therefore, the recommended Fire Rescue Assessments calculated in this study were developed such that the costs of providing fire protection service will be recovered through assessments to properties in proportion to the benefit received by the availability of fire protection service to those properties. 2.2 ANALYSIS This section presents an overview of the analysis that was conducted to develop fair and equitable Fire Rescue Assessments that conform to legal standards required for such types of assessments or fees. 2.2.1 COST OF SERVICE & REVENUE REQUIREMENT In order to develop the Fire Rescue Assessments, it was first necessary to determine the cost of providing fire protection services to all properties located within the City limits. As such, Burton & Associates conducted several interactive work sessions with City staff during which we accomplished a line -item allocation of all Fire Department costs to Fire BURTON & ASSOCIATES City of Delray Beach Specialists in Governmental Economics 3 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT Rescue Service and to Emergency Medical Service (EMS)2. This analysis determined how much of the total FY 2012 operating budget (including personnel, operating, and minor capital expenses), debt service requirements, and capital improvement expenditures for the Fire Department was associated with Fire Rescue Service. The Fire Rescue Service costs were then escalated to FY 2013 based upon line -item cost escalation factors discussed with City staff. Once the FY 2012 and FY 2013 Fire Rescue Service costs were determined, all offsetting revenues received by the Fire Department (such as revenues from inter -local service agreements, plan reviews, hazardous materials programs, etc.) were allocated to Fire Rescue Service and EMS, with the Fire Rescue Service portion of the revenues being deducted from the FY 2012 and FY 2013 cost of Service to determine the full amount of the Fire Rescue Service revenue requirement that could be recovered via a non -ad valorem assessment program. The basis of the cost and offsetting revenue allocations described above is presented in the following sub sections. FY 2012 Operating Budget Allocation Personnel - The analysis of personnel costs was based upon the premise that in order to provide fire protection service only, all personnel that are classified as firefighter/ paramedic /EMT would only need to be qualified as firefighters (the City hires personnel qualified as firefighter /paramedic /EMT in order to provide efficiencies through cross training). Based upon discussions with Fire Department Management it was determined that 1) an estimated 90.3% of the workforce is qualified as firefighters /paramedics /EMTs, and 2) the average salary of a firefighter would be approximately 85.5% of the average salary of a firefighter /paramedic /EMT. As such, 14.5% of the cost for 90.3% of the personnel was allocated 100% to EMS Service, with the remaining personnel expenses being allocated to Fire Rescue Service, resulting in an overall allocation of all personnel costs of approximately 87% to Fire Rescue Service. 2 EMS costs cannot be included in a fire services assessment based upon a Florida Supreme Court decision. BURTON & ASSOCIATES City of Delray Beach Specialists in Governmental Economics 4 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT Operating Expenses and Minor Capital — These costs were allocated to Fire Rescue Service and EMS by assigning all or portions of the costs to each service based upon interviews with Fire Department Management as to what the specific expense was for and which service it beneStted. Based upon this analysis, approximately 72% of these costs were allocated to Fire Rescue Service. The following schedule presents the detailed allocation of the FY 2012 operating budget. BURTON & ASSOCIATES City of Delray Beach Specialists in Governmental Economics 5 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT FY 2012 Fire Department Operating Budget Allocation Div Code Item # Description 2012 Bgt FY 12 EMS $ FY 12 Fire $ Div 11 FIRE ADMINISTRATION Div 11 PS 12 -10 REGULARSALARIES /WAGES 911,790 118,638 793,152 Div11 PS 12 -20 HOLIDAY PAY 440 57 383 Div 11 PS 12.90 TERM. PAY /SICK & VACATION - - Div 11 PS 14 -10 OVERTIME - _ Div 11 PS 1545 EDUCATION/CERTIFICATION 17,640 2,295 15,345 Div 11 PS 15-50 OTHER PAY - - - Div11 PS 21 -10 EMPLOYER FICA 66,920 8,707 58,213 Div11 PS 22 -10 GENERAL EMPL. RE71REMENT 44,850 5,836 39,014 Div 11 PS 22 -20 POLICE & FIRE RETIREMENT 205,990 26,803 179,187 Div11 PS 22 -30 ICMA CONTRIBUTION 12,340 1,606 10,734 Div 11 PS 2240 RETIREE HEALTH TRUST 3,450 449 3,001 Div 11 PS 23 -10 LIFE INSURANCE 11,060 1,439 9,621 Div11 PS 23-20 DISABILITY INSURANCE 3,740 487 3,253 Div 11 PS 23.30 HEALTH INSURANCE 100,120 13,027 87,093 Div 11 PS 24 -10 WORKERS COMPENSATION 20,840 2,712 18,128 Div 11 PS 25-10 UNEMPLOYMENT COMPENSAI 460 60 400 Div 11 PS 25-20 EMPLOYEE ASSISTANCE PRO 430 56 374 Div 11 OMF 31 -20 MEDICAL - Div 11 OMF 31 -90 OTHER PROFESSIONAL SERVI 20,200 - 20,200 Div 11 OMF 34 -10 JANITORIAL SERVICES 8,640 8,640 Div 11 OMF 34 -20 PEST CONTROL SERVICES 4,090 - 4,090 Div 11 OMF 3440 TEMPORARY SERVICES - - Div 11 OMF 34 -90 OTHER CONTRACTUAL SERVIC 5,540 - 5,540 Div11 OMF 40 -10 TRAVEL & TRAINING 10,090 1,200 8,890 Div11 OMF 41 -10 TELEPHONE EXPENSE 4,030 - 4,030 Div11 OMF 41 -15 PORTABLE PHONE /MDD 7,140 - 7,140 Div11 OMF 42 -10 POSTAGE 4,500 - 4,500 Div11 OMF 42 -20 EI4'RESSCHARGE /MESSENGI 1,500 - 1,500 Div11 OMF 43-10 ELECTRICITY 84,550 84,550 Div11 OMF 43 -20 WATER & SEWER 12,840 - 12,840 Div11 OMF 43 -25 IRRIGATION WATER 13,350 13,350 Div11 OMF 43 -30 WASTE COLLECTION & DISP. 6,150 - 6,150 - Div11 OMF 4340 GAS 11,000 - 11,000 Div11 OMF 43 -50 STORMWATER ASSESSMENT 5,500 - 6,500 Div 11 OMF 44 -30 EQUIPMENT RENTAULEASES 10,550 - 10,550 Div 11 OMF 4440 VEHICLE RENTAULEASES 100 - 100 Div11 OMF 4445 VEHICLE RENTAL - GARAGE 19,710 - 19,710 Div11 OMF 45.10 GENERAL LIABILITY 47,960 - 47,960 Div11 OMF 45-90 OTHER INSURANCE COSTS - - - - Div11 OMF 46-10 BUILDING MAINTENANCE 150,000 - 150,000 Div 11 OMF 46-20 EQUIPMENT MAINTENANCE 24,430 - 24,430 Div11 OMF 46 -30 VEHICLE MAINT.- GARAGE 13,300 - 13,300 Div11 OMF 46 -90 OTHER REPAIR/MAINT. COSTS - - _ Div11 OMF 47 -10 PRINTING /BINDING SERVICES 5,000 - 5,000 Div11 OMF 48 -20 EMPLOYEE AWARDS 1,500 - 1,500 Div11 OMF 48-30 REFRESHMENT /FOOD /MEETIN 2,550 - 2,550 Div11 OMF 49.10 ADVERTISING - _ Div11 OMF 49-90 OTHER CURRENT CHARGES - - - Div 11 OMF 51 -10 STATIONERY /PAPER/FORMS 2,430 - 2,430 Div 11 OMF 51 -20 OFFICE EQUIP. < $1,000 3,000 - 3,000 Div 11 OMF 51 -90 OTHER OFFICE SUPPLIES 13,870 - 13,870 Div 11 OMV 52 -10 FUEULUBE VEHICLES 12,670 - 12,670 Div11 OMF 52 -18 BUNKER GEAR 4,270 - 4,270 Div11 OMF 52 -20 GENERAL OPER. SUPPLIES 4,750 - 4,750 D1v11 OMF 52 -22 UNIFORMS /LINEN SERVICES 6,550 - 6,550. Div11 OMF 52 -25 JANITORIAL SUPPLIES 19,000 19,000 Div11 OMF 52 -27 EQUIPMENT < $1,000 9,700 - 9,700 Div11 OMF 54 -10 BOOKS & PUBLICATIONS 220 - 220 Div11 OMF 54 -15 SUBSCRIPTIONS 260 60 200 Div11 OMF 54 -20 MEMBERSHIPS 3,020 210 2,810 Div11 OMF 54 -30 TRAINING /EDUCATION COSTS 6,000 3,910 2,090 Div11 OMF 54 -35 TUITION REIMBURSEMENT 3,780 - 3,780 Div11 CO 64 -10 OFFICE FURN. /FIXTURES - - Div11 CO 64 -11 COMPUTER EQUIPMENT _ _ _ Div11 CO 64 -90 OTHER MACH. /EQUIPMENT 17,000 - 17,000 BURTON &ASSOCIATES City of Delray Beach Specialists in Governmental Economics 6 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT FY 2012 Fire Department Operating Budget Allocation Div Code Item # Description 2012 Bgt FY 12 EMS $ FY 12 Fire $ Div 13 Div 13 HIGHLAND BEACH Div 13 PS 12 -10 REGULAR SALARIES/WAGES 1,594,960 207,529 1,387,431 Div 13 PS 12 -20 HOLIDAY PAY 54,100 7,039 47,061 Div 13 PS 12 -30 TERM. PAY /SICK & VACATION 13,600 1,770 11,830 Div 13 PS 14 -10 OVERTIME 190,840 24,831 166,009 Div 13 PS 15-45 EDUCATION /CERTIFICATION 25,080 3,263 21,817 Div 13 PS 15 -50 OTHER PAY 1,130 147 983 Div 13 PS 21 -10 EMPLOYER FICA 135,390 17,616 117,774 Div 13 PS 22 -20 POLICE & FIRE RETIREMENT 630,120 81,989 548,131 Div 13 PS 22-40 RETIREE HEALTH TRUST 34,760 4,523 30,237 Div 13 PS 23 -10 LIFE INSURANCE 2,110 275 1,835 Div 13 PS 23 -20 DISABILITY INSURANCE 6,520 848 5,672 Div 13 PS 23 -30 HEALTH INSURANCE 183,640 23,894 159,746 Div 13 PS 24 -10 WORKERS COMPENSATION 54,250 7,059 47,191 Div 13 PS 25 -10 UNEMPLOYMENT COMPENSA- 780 101 679 Div 13 PS 25 -20 EMPLOYEE ASSISTANCE PRO 740 96 644 Div 13 OMF 34 -20 PEST CONTROL SERVICES 200 - 200 Div 13 OMF 34 -90 OTHER CONTRACTUAL SERVIC 700 700 Div 13 OMF 40 -10 TRAVEL & TRAINING 140 140 Div 13 OMF 41 -10 TELEPHONE EXPENSE 1,610 1,610 Div 13 OMF 41 -15 PORTABLE PHONE /MDD - Div 13 OMF 43.40 GAS 2,000 2,000 Div 13 OMF 46 -10 BUILDING MAINTENANCE 8,900 - 81900 Div 13 OMF 46 -20 EQUIPMENT MAINTENANCE 11,490 8,530 2,960 Div 13 OMF 46 -30 VEHICLE MAINT.- GARAGE 45,000 - 45,000 Div 13 OMF 51 -20 OFFICE EQUIP. < $1,000 800 800 Div 13 OMF 51 -90 OTHER OFFICE SUPPLIES - - Div 13 OMV 52 -10 FUEULUBE VEHICLES 10,530 10,530 Div 13 OMF 52 -18 BUNKER GEAR 9,680 9,680 Div 13 OMF 52 -20 GENERAL OPER. SUPPLIES 22,290 20,340 1,950 Div 13 OMF 52 -22 UNIFORMS /LINEN SERVICES 11,660 - 11,660 Div 13 OMF 52 -25 JANITORIAL SUPPLIES 1,500 1,500 Div 13 OMF 52 -27 EQUIPMENT < $1,000 10,250 7,800 2,450 Div 13 OMF 54 -10 BOOKS & PUBLICATIONS 200 200 - Div 13 OMF 54 -30 TRAINING /EDUCATION COSTS 10,000 10,050 (50) Div 13 OMF 54 -35 TUITION REIMBURSEMENT 530 - 530 Div 13 CO 64 -35 PUMPS & HOSES 3,280 - 3,280 Div 13 CO 64 -90 OTHER MACH. /EQUIPMENT 2,350 2,350 BURTON &ASSOCIATES City of Delray Beach Specialists in Governmental Economics Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT FY 2012 Fire Department Operating Budget Allocation Div Code Item # Description 2012 Bgt FY 12 EMS $ FY 12 Fire $ Div 15 FIRE - OPERATIONS - - Div 15 PS 12 -10 REGULAR SALARIES /WAGES 7,630,720 992,877 6,637,843 Div 15 PS 12 -20 HOLIDAY PAY 252,340 32,833 219,507 Div 15 PS 12 -30 TERM. PAY /SICK & VACATION 89,760 11,679 78,081 Div 15 PS 14 -10 OVERTIME 685,240 89,160 596,080 Div 15 PS 14 -20 REIMBURSABLE OVERTIME - - - Div 15 PS 15135 EDUCATION /CERTIFICATION 199,270 25,928 173,342 Div 15 PS 15 -50 OTHER PAY 3,380 440 2,940 Div 15 PS 21 -10 EMPLOYER FICA 637,760 82,983 554,777 Div 15 PS 22 -20 POLICE & FIRE RETIREMENT 2,912,240 378,928 2,533,312 Div 15 PS 22 -30 ICMA CONTRIBUTION 13,190 1,716 11,474 Div 15 PS 22-40 RETIREE HEALTH TRUST 150,000 19,517 130,483 Div 15 PS 23 -10 LIFE INSURANCE 10,940 1,423 9,517 Div 15 PS 23 -20 DISABILITY INSURANCE 31,250 4,066 27,184 Div 15 PS 23 -30 HEALTH INSURANCE 876,490 114,045 762,445 Div 15 PS 24 -10 WORKERS COMPENSATION 263,440 34,278 229,162 Div 15 PS 25 -10 UNEMPLOYMENTCOMPENSA' 3,840 500 3,340 Div 15 PS 25 -20 EMPLOYEE ASSISTANCE PRO 3,600 468 3,132 Div 15 OMF 31 -90 OTHER PROFESSIONAL SERVI 32,000 32,000 - Div 15 OMF 34 -70 PHOTO /MICROFILM SERVICES - - Div 15 OMF 34 -90 OTHER CONTRACTUAL SERVIC - - - Div 15 OMF 40 -10 TRAVEL & TRAINING 16,500 2,250 14,250 Div 15 OMF 40 -20 NON - EMPLOYEE TRAVEL - Div15 OMF 41 -10 TELEPHONE EXPENSE 14,700 14,700 Div 15 OMF 41 -15 PORTABLE PHONE /MDD 17,340 17,340 Div 15 OMF 41 -20 INTERNETACCESS - - Div 15 OMF 44 -40 VEHICLE RENTAULEASES 200 200 Div 15 OMF 44-45 VEHICLE RENTAL- GARAGE 383,370 216,020 167,350 Div 15 OMF 45 -10 GENERAL LIABILITY 376,120 - 376,120 Div 15 OMF 46 -10 BUILDING MAINTENANCE - - - Div 15 OMF 46 -20 EQUIPMENT MAINTENANCE 108,320 68,400 39,920 Div 15 OMF 46 -30 VEHICLE MAINT.- GARAGE 336,500 107,200 229,300 Div 15 OMF 46 -31 VEHICLE MAINT- OTHER - - - Div 15 OMF 46 -90 OTHER REPAIR/MAINT. COSTS 43,270 3,000 40,270 Div 15 OMF 47 -10 PRINTING /BINDING SERVICES 3,800 3,800 - Div 15 OMF 48 -30 REFRESHMENT /FOOD /MEETIN - - Div 15 OMF 49 -90 OTHER CURRENT CHARGES Div 15 OMF 51 -10 STATIONERY /PAPER/FORMS - - Div 15 OMF 51 -20 OFFICE EQUIP. < $1,000 2,400 2,400 Div 15 OMF 51 -25 COMPUTER SOFTWARE <$1,0( - Div 15 OMF 51 -90 OTHER OFFICE SUPPLIES - - - Div 15 OMV 52 -10 FUEULUBE VEHICLES 144,140 91,800 52,340 Div 15 OMF 52 -18 BUNKER GEAR 58,270 - 58,270 Div 15 OMF 52 -20 GENERAL OPER. SUPPLIES 241,790 173,410 68,380 Div 15 OMF 52 -22 UNIFORMS /LINEN SERVICES 70,820 - 70,820 Div 15 OMF 52 -27 EQUIPMENT < $1,000 101,820 40,860 60,960 Div 15 OMF 54 -10 BOOKS & PUBLICATIONS 3,000 2,990 10 Div 15 OMF 54 -15 SUBSCRIPTIONS 20 - 20 Div 15 OMF 54 -20 MEMBERSHIPS 1,370 1,370 Div 15 OMF 54 -30 TRAINING /EDUCATION COSTS 88,830 42,230 46,600 Div 15 OMF 54 -35 TUITION REIMBURSEMENT 15,980 - 15,980 Div 15 CO 64 -11 COMPUTER EQUIPMENT 1,200 1,200 Div 15 CO 64 -35 PUMPS & HOSES 22,330 - 22,330 Div 15 CO 64 -90 OTHER MACH. /EQUIPMENT 101,640 6,480 95,160 Div 15 CO 66 -10 SOFTWARE 9,750 - 9,750 BURTON &ASSOCIATES $ City of Delray Beach Specialists in Governmental Economics Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT FY 2012 Fire Department Operating Budget Allocation Div Cade Item # Description 2012 Bgt FY 12 EMS $ FY 12 Fire $ Div 16 EMERGENCY MANAGEMENT - Div16 PS 14 -10 OVERTIME 6,500 846 6,654 Div 16 PS 21 -10 EMPLOYER FICA 500 65 435 Div 16 PS 23 -10 LIFE INSURANCE - - Div 16 OMF 40 -10 TRAVEL & TRAINING 330 330 Div 16 OMF 48 -30 REFRESHMENT /FOOD /MEETIN 900 900 Div 16 OMF 51 -25 COMPUTER SOFTWARE <$1,0( 440 440 Div 16 OMF 51 -90 OTHER OFFICE SUPPLIES - - Div 16 OMF 52 -20 GENERAL OPER. SUPPLIES 5,630 5,630 Div 16 OMF 54 -30 TRAINING /EDUCATION COSTS 900 900 Div 17 FIRESAFETY - Div 17 PS 12 -10 REGULAR SALARIES /WAGES 667,130 86,804 580,326 Div 17 PS 12 -20 HOLIDAY PAY 860 112 748 Div 17 PS 12 -30 TERM. PAY /SICK & VACATION 55,750 7,254 48,496 Div 17 PS 13 -10 PARTTIME 21,580 2,808 18,772 Div 17 PS 14 -10 OVERTIME 17,000 2,212 14,788 Div 17 PS 14 -20 REIMBURSABLE OVERTIME - Div 17 PS 15-45 EDUCATION /CERTIFICATION 27,600 3,591 24,009 Div 17 PS 15 -50 OTHER PAY 930 121 809 Div 17 PS 21 -10 EMPLOYER FICA 58,770 7,647 51,123 Div 17 PS 22 -10 GENERAL EMPL. RETIREMENT 3,920 510 3,410 Div 17 PS 22 -20 POLICE & FIRE RETIREMENT 156,350 20,344 136,006 Div 17 PS 22 -30 ICMA CONTRIBUTION 3,260 424 2,836 Div 17 PS 2240 RETIREE HEALTH TRUST 11,790 1,534 10,256 Div 17 PS 23 -10 LIFE INSURANCE 800 104 696 Div 17 PS 23 -20 DISABILITY INSURANCE 2,730 355 2,375 Div 17 PS 23 -30 HEALTH INSURANCE 66,760 8,687 58,073 Div 17 PS 24 -10 WORKERS COMPENSATION 22,780 2,964 19,816 Div 17 PS 25 -10 UNEMPLOYMENT COMPENSAI 320 42 278 Div 17 PS 25 -20 EMPLOYEE ASSISTANCE PRO 260 34 226 Div 17 OMF 34 -70 PHOTO /MICROFILM SERVICES - Div 17 OMF 40 -10 TRAVEL & TRAINING 3,560 3,560 Div 17 OMF 41 -10 TELEPHONE EXPENSE 2,170 2,170 Div 17 OMF 41 -15 PORTABLE PHONE /MDD 6,010 6,010 Div 17 OMF 44 -30 EQUIPMENTRENTAL/LEASES 3,430 3,430 Div 17 OMF 4445 VEHICLE RENTAL- GARAGE 18,420 18,420 Div 17 OMF 45 -10 GENERAL LIABILITY 26,890 26,890 Div 17 OMF 46.20 EQUIPMENT MAINTENANCE 200 200 Div 17 OMF 46 -30 VEHICLE MAINT: GARAGE 13,000 13,000 Div 17 OMF 46 -90 OTHER REPAIR/MAINT. COSTS 1,200 1,200 Div 17 OMF 47 -10 PRINTING /BINDING SERVICES 550 550 Div 17 OMF 48 -30 REFRESHMENT /FOOD /MEETIN - - Div 17 OMF 48 -90 OTHER PROMOTIONAL ACTIVIT - Div 17 OMF 51 -10 STATIONERY /PAPER/FORMS 500 500 Div 17 OMF 51 -20 OFFICE EQUIP. < $1,000 700 700 Div 17 OMF 51 -90 OTHER OFFICE SUPPLIES 2,000 2,000 Div 17 OMV 52 -10 FUEL/LUBEVEHICLES 13,000 13,000 Div 17 OMF 52 -18 BUNKER GEAR 3,450 3,450 Div 17 OMF 52 -20 GENERAL OPER. SUPPLIES 900 900 Div 17 OMF 52 -22 UNIFORMS /LINEN SERVICES 3,800 3,800 Div 17 OMF 52 -27 EQUIPMENT < $1,000 400 400 Div 17 OMF 54 -10 BOOKS & PUBLICATIONS 1,380 1,380 Div 17 OMF 54 -20 MEMBERSHIPS 1,050 1,050 Div 17 OMF 54 -30 TRAINING /EDUCATION COSTS 3,090 3,090 Div 17 OMF 54 -35 TUITION REIMBURSEMENT 1,920 1,920 Div 17 CO 64 -10 OFFICE FURN. /FIXTURES - PS 19,217,140 2,500,452 16,716,688 OMF 2,707,260 744,460 1,962,800 OMV 180,340 91,800 88,540 CO 157,550 8,830 148,720 22,262,290 3,345,542 18,916,748 15.0% 85.0% BURTON &ASSOCIATES City of Delray Beach Specialists in Governmental Economics 9 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT FY 2012 Debt Service Allocation City staff identified two outstanding borrowings that were issued for the Fire Department (Series 2002 General Obligation Bonds and the Series 2007 Utility Tax Bond). Based upon discussions with City staff, the annual principal and interest (debt service) requirements for each of these borrowings was allocated to Fire Rescue Service and EMS based upon the overall allocation of the total operating budget, as the facilities funded from these financings are being used proportionately as part of the annual provision of service for each of these functions. As such, approximately 85% of the annual debt service was allocated to Fire Rescue Service and 15% to EMS. The schedule below presents a five -year summary of the annual debt service allocations. Fire Department Debt Service Allocation Financing EMS % Fire % FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Series 2002 GO Bonds 15% 85% 526,301 524,961 - - - Series 2007 Utility Tax Bond (FS 4) 15% 85% 342,788 342,568 356,098 355,328 354,558 Total 869,089 867,529 356,098 355,328 354,558 Fire Portion 738,484 737,158 302,584 301,930 301,276 EMS Portion 130,605 130,371 53,514 53,398 53,282 Capital Improvement Program (CIP) Allocation Each project of the multi -year CIP was allocated to Fire Rescue Service and EMS based upon discussions with Fire Department Management reflecting the specific nature and function of each project. The schedule on the following page presents the allocation of each project within the five -year CIP. In summary, approximately 82% of the five -year CIP is associated with Fire Rescue Service and 18% is associated with EMS. BURTON & ASSOCIATES 10 City of Delray Beach Specialists in Governmental Economics Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT Fire Department Capital Improvement Program Description EMS % Fire % FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Fire Dept- Defib /Monitor 100% 0% 52,000 52,000 261,939 Fire Dept- Site Plan /Design Depot 0% 100% 88,278 63,117 33,061 Fire EMS Billing Software 100% 0% Fire HQ Generator Upgrade 15% 85% 140,000 Fire HQ Public Plaza 15% 85% 35,000 225,000 Fire Station Alerting 15% 85% Fire Training Ctr Restoration 0% 100% Fire Video Conference Server 15% 85% 30,000 Fire ZolI Med Autopulse 100% 0% Fire SCBA 0% 100% 144,500 160,000 160,000 FS 2 Generator Upgrade 15% 85% 40,000 FS 3 Generator Upgrade 15% 85% 40,000 Telephone System- Fire 15% 85% 100,000 Fire HQ -Add'I Parking 15% 85% Fire Rescue Training Ctr 0% 100% 75,000 Fire HQ Hardening 15% 85% 390,000 Fire Dept Sev Unit 85% 15% 25,000 25,000 Other Unspecified CIP 15% 85% 0% Total 179,500 462,000 337,000 420,000 295,000 Fire Portion 174,240 354,937 248,722 356,883 261,939 EMS Portion 5,260 107,063 88,278 63,117 33,061 Offsetting Revenue Allocation Each of the various revenues collected by the Fire Department was allocated to Fire Rescue Service and EMS based upon discussions with Fire Department Management reflecting the specific service or services provided for which the revenue was received. The schedule on the following page presents the allocation of the FY 2012 budget amount for each individual revenue type. BURTON & ASSOCIATES City of Delray Beach Specialists in Governmental Economics 11 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT FY 2012 Fire Department Offsetting Revenue Budget Allocation ST REIMB /FIRE INCENTIVE $ 60,100 15.0% 85% $ 9,032 51,068 COLLECTION AGENCY $ 15,000 100.0% 0% $ 15,000 - HIGHLAND BEACH CONTRACT $2,951,890 15.0% 85% $ 443,605 2,508,285 HIGHLAND BEACH CONTRACT I $ 12,000 100.0% 0% $ 12,000 - FIRE EMS GULFSTREAM QTRLY $ 370,990 15.0% 85% $ 55,752 315,238 EMERGENCY SRVS - O T REIMS / $ 27,000 85.0% 15% $ 22,950 4,050 FIRE - HAZ MAT PROGRAM $ 228,340 0.0% 100% $ - 228,340 TRANSPORT FEES $2,300,000 100.0% 0% $ 2,300,000 - FIRE SAFETY PLAN REVIEW $ 62,000 0.0% 100% $ - 62,000 FALSE ALARM FEES - FIRE $ 1,500 0.0% 100% $ - 1,500 Total $6,028,820 $ 2,858,339 3,170,481 Note: General Fund Contribution is an additional offset that is determined and credited as part of calculating the fire rescue assessment. Summary - The identified costs less the offsetting revenue allocated to Fire Rescue Service as discussed in the previous sub sections formed the basis for the revenue requirement for the proposed Fire Rescue Assessments. Although the total net costs or revenue requirement associated with Fire Rescue Service for FY 2012 that could be recovered with the non -ad valorem assessment was determined to be $16,658,991, City Management determined that a lower amount would be appropriate to keep the City's Fire Rescue Assessment in line with neighboring communities. As such, the lower amount that is included in the FY 2012 revenue requirement for the assessments developed herein is $3,423,826, with the remaining costs continuing to be funded by the City's General Fund. The schedule on the following page presents a summary of the FY 2012 and FY 2013 Fire Rescue Service cost of service, offsetting revenues, and annual assessment revenue requirements. BURTON & ASSOCIATES City of Delray Beach Specialists in Governmental Economics 12 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT FIRE RESCUE SERVICE REVENUE REQUIREMENTS PERSONNEL SERVICES VARIABLE O &M FIXED O &M CAPITAL 0 UTLAY CIP EXISTING DEBT 16, 716, 688 17, 406, 378 88,540 97,394 1,962,800 2,018,901 148,720 152,438 174,240 365,585 738,484 737,158 TOTAL COST OF SERVICE 19,829,472 20,777,854 LESS: OFFSETTING REVENUE 3,170,481 3,261,654 NET REVENUE REQUIREMENT 16,658,991 17,516,200 AEVENUESOURCES FY 2012 ASSESSMENT REVENUE (1) 3,423,826 3,321,111 GENERAL FUND CONTRIBUTION 13,235,165 14,195,089 TOTAL REVENUES 16,658,991 17,516,200 VARIANCE (REVENUES to NET REVENUE REQUIREMENT) (1) FY 2013 revenue reflects a 3% reduction as an estimate for the billing and collection costs of Property Appraiser & Tax Col lector that will be deducted from assessment revenue remitted to City. 2.2.2 FINDING OF BENEFIT It is our determination that the City's fire protection services, facilities, and programs provide a special benefit to property because fire protection services possess a logical relationship to the use and enjoyment of improved property by: (1) protecting the value and integrity of the improvements and structures through the provision of available fire services; (2) protecting the life and safety of intended occupants in the use and enjoyment of property; (3) lowering the cost of fire insurance by the presence of a professional and comprehensive fire program within the City; and (4) containing the spread of fire incidents occurring on vacant property with the potential to spread and endanger the structures and occupants of improved property. BURTON &ASSOCIATES City of Delray Beach Specialists in Governmental Economics 13 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT 2.2.3 FIRE SERVICE COST & REVENUE REQUIREMENT ALLOCATION BASED UPON BENEFIT CONFERRED The total Fire Rescue Service costs were allocated to properties within the City in such a manner as to fairly apportion the costs based upon the benefit received from fire protection service. It was determined that benefit is conferred on properties in two ways; by the availability of fire protection services (watch- standing benefit) and the provision of calls for service to specific properties (service benefit). Based upon this determination, the total Fire Rescue Service costs were allocated to watch - standing and service benefit cost pools. Watch- standing benefit is the special benefit conferred upon all properties in the City by the protection from loss of use and economic loss of the buildings on the property that every developed property receives by virtue of the fact that the City stands ready with the facilities, equipment, and personnel to provide fire suppression service to all properties within the City limits. This benefit is conferred upon each developed parcel regardless of calls for service. Service benefit is the special benefit conferred upon property classes that actually receive calls for service. This benefit is conferred upon property classes based upon actual calls for service made to each identified property class. This allocation was accomplished by estimating the marginal cost of making all calls for service (which includes fuel and a small portion of the maintenance expenses of the vehicles used to make the calls). Those costs were allocated to the service benefit cost pool with the remainder of the costs being allocated to the watch - standing benefit cost pool. The marginal cost of calls for service comprises less than 1% of the fire service revenue requirement, resulting in over 99% of the revenue requirement being allocated to the watch - standing benefit cost pool. Because the service benefit cost pool is so small (less than 1% of the total Fire Rescue Service cost pool) it was determined in consultation with City staff that the total cost apportionment should be based upon the watch - standing apportionment as discussed in the following paragraph because the effects of allocating the service costs based upon calls for service would not have a material effect upon the apportionment of costs. BURTON & ASSOCIATES City of Delray Beach Specialists in Governmental Economics 4 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT The portion of the Fire Rescue Service costs to be recovered in the assessments were then allocated to residential and non - residential property classes based upon the percentage of developed building area contained in the Palm Beach County Property Appraiser's records for each parcel within the City limits of Delray Beach. Parcels were determined to be residential or non - residential based upon Department of Revenue (DOR) property use classifications. This allocation results in approximately 77.6% of Fire Rescue Service costs being allocated to residential properties and approximately 22.4% being allocated to non - residential properties as is shown in the following table. FY 2012 REVENUE ALLOCATION ASSESSMENT ANNUALIZED REV REQ. PER FAMSAL MODE $ 3,423,826 STATUTORY DISCOUNT $ - TOTAL ASSESSMENT $ 3,423,826 ALLOCATION BENEFIT LAND BENEFIT $ - 0.00% DEVELOPED SPACE BENEFIT $ 3,423,826 100.00% WATCHSTANDING BENEFIT $ 3,423,826 CALLS - FOR - SERVICE RESIDENTIAL FIRE CALLS NON - RESIDENTIAL FIRE CALLS ALL OTHER CALLS (i.e. EMS /TRAFFIC etc.) $ - 0.00% S - TOTAL RECOVERABLE REVENUE $ 3,423,826 SQUARE •s ALLOCATION RESIDENTIAL SQ FT 52,732,688 77.63% NON - RESIDENTIAL SQ FT 15,191,777 22.37% TOTAL SQ FT 67,924,465 100% FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT 2.2.4 FIRE RESCUE ASSESSMENT RATE CLASSES In order to accomplish the allocations described above, it was necessary to classify properties into Fire Rescue Assessment rate classes. After reviewing property data obtained from the Palm Beach County Property Appraiser's Office it was determined that two rate classes should be established for the Fire Rescue Assessments, residential (R) and non - residential (NR). Each property was separated into its specific rate class based upon the DOR property use classification codes as identified in the property data. The chart on the following pages shows the mapping of DOR property use codes into Fire Rescue Assessment rate classes. It is important to note that Public County Schools (DOR Code 8300) were not included in the calculation of the Fire Rescue Assessment as these properties are statutorily exempt from such assessments. In addition Religious, District, Forest/Park/Recreation, County Government, Federal Government, and Municipal Government properties (DOR Codes 7100, 8000, 8200, 8600, 8800, and 8900) were not included in the calculation of the Fire Rescue Assessment calculations as these properties are being exempted by the City. All other property classes, except those classified as currently vacant or non - developable (such as rights -of -way, easements, etc.), are included in the assessment program. To the extent that the City determines to exclude certain property classes, the assessments for all other properties would not change; however, the assessment revenue that otherwise would have been recovered from the excluded properties will need to be provided from the General Fund. BURTON & ASSOCIATES City of Delray Beach Specialists in Governmental Economics 16 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT 0 VACANT 521 V 10 VACANTTWNHS 370 V 30 VACANT ZLOT OL 4 V 100 SINGLE FAMILY 10,051 SFR 101 SFR -COMM ZONING 58 SFR 110 TOWNHOUSE 3,177 MFR 130 ZERO LOT LINE 1,254 MFR 140 SFR-IND ZONING 0 SFR 200 MOBILE HOME 134 MFR 300 MULTIFAMILY 36 MFR 305 MULTIFAMILY 1 MFR 400 CONDOMINIUM 13,331 MFR 420 TIMESHARE 5 NR 510 COOPERATIVE 342 MFR 605 RETIREMENT 2 MFR 620 LIFE CARE HX 3 MFR 700 MISC RESID SFR 2 SFR 800 MFR < 10 UNITS 623 MFR 801 MFR <10 UT -CM ZN 36 MFR 804 MFR<10 UT -IN ZN 2 MFR 1000 VACANT COMM 167 V 1100 STORES 146 NR 1200 STOR /OFF /RES 109 NR 1300 DEPT STORE 13 N R 1400 SPRMKT /DRUG STIR 9 NR 1600 SHOPPING CENTER 21 NR 1700 OFFICE 1STY 103 NR 1800 OFFICE MULTI 36 NR 1900 PROF OFFICES 64 NR 2000 AIRPORT /MARINA 2 NR 2010 WRKNG WTRFRONT 1 NR 2100 RESTAURANT 35 NR 2200 REST, DRIVE -IN 15 NR 2300 FINANCIAL 38 NR 2400 INSURANCE 2 NR 2500 SERVICE SHOPS 6 NR 2600 SER STATION 22 NR 2700 AUTO SALES 95 NR 2800 PKG LT/ MH PI< 14 NR 2900 WHOLESALER 1 NR 3200 THTR /AUD /CLBHS 1 NR BURTON & ASSOCIATES 17 Specialists in Governmental Economics Single Family Home SFR Multi - Family Home MFR Non - Residential NR Institutional I Government -owned G Vacant V City of Delray Beach Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT 3300 NIGHTCLUBS 7 NR 3500 TOURIST ATTRAC 2 NR 3800 GOLF COURSE 16 NR 3900 MOTEL 23 NR 4000 VACANT INDUS 69 V 4100 LIGHT MFG 7 NR 4400 PACKING 1 NR 4600 FOOD PROCESS 2 NR 4700 MIN PROCESS 9 NR 4800 WAREH /DISTTERM 150 NR 4900 OPEN STORAGE 1 NR 4969 COMMERCIAL CONDO 1 NR 4960 CONDO COMM 529 NR 6600 ORCHARD GROVES 5 NR 6900 ORN /MISCAGRI 3 NR 7100 RELIGIOUS 113 1 7200 PRV SCHL /COLL 28 1 7300 PRV HOSPITAL 1 1 7500 ORPHNG /NON -PROF 2 1 7600 MORT /CEMETERY 4 NR 7700 CLB /LDG /UN HALL 9 NR 7800 SANI/ REST HOME 3 NR 8000 DISTRICTS 116 G 8200 FOREST /PK /REC 14 G 8300 PUB CTYSCHOOL 13 1 8500 HOSPITAL 1 I 8600 CTY INC NONMUNI 17 G 8800 FEDERAL 1 G 8900 MUNICIPAL 202 G 9000 LEASEHOLD INT 18 G 9100 UTI LITY 12 NR 9400 R/W - BUFFER 207 NR 9500 RIVER /LAKES 70 NR 9600 SEWG /WASTE LAND 3 NR 9700 OUTDR REC/ PK 172 NR 9900 NON AG 11 NR Total 32,684 BURTON & ASSOCIATES 18 Specialists in Governmental Economics City of Delray Beach Final Report Single Family Home SFR Multi - Family Home MFR Non - Residential NR Institutional I Government -owned G Vacant V City of Delray Beach Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT 2.2.5 ASSESSMENT RATE STRUCTURE Residential Parcels — Some fire assessment structures apportion equal fire rescue assessments to residential parcels, independent of the square feet of developed space on the parcel. However, judicial standards established through case law have determined that a reasonable method for apportioning fire rescue benefits to residential properties is square feet of developed space. Also, the benefit conferred upon properties in the form of protection from loss of use of and economic loss of structures on the properties is generally proportional to the square feet of developed space on the parcel. Therefore, this report presents for consideration two options for apportionment of the assessments to residential properties as follows: 1) equal assessment for all residential parcels per dwelling unit, and 2) a tiered assessment structure for residential parcels per dwelling unit, whereby parcels with smaller amounts of developed space per dwelling unit will pay less than parcels with larger amounts of developed space per dwelling unit. The proposed structure is a tiered structure which recognizes that parcels with greater developed space receive a greater benefit than those with less developed space. In this structure the size of the tiers was determined by analysis of the frequency of occurrence of parcels with square feet of developed space per unit within five (5) tiers. Non - Residential Parcels — Fire rescue assessments are usually apportioned to non- residential parcels based upon the square feet of developed space on the parcel. However, in some instances, fire rescue assessments are apportioned based upon an assessment per square foot and the exact number of square feet of developed space on each non - residential parcel. Therefore, this report presents for consideration two options for apportionment of the assessments to non - residential properties as follows: 1) applying an assessment per square foot to the exact number of square feet of developed space on each non - residential parcel, and 2) a tiered assessment structure for non - residential parcels, whereby parcels with smaller amounts of developed space will pay less than parcels with larger amounts of developed space. BURTON & ASSOCIATES City of Delray Beach Specialists in Governmental Economics 9 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT 2.3 RESULTS This section presents the calculation of the proposed Fire Rescue Assessments. While the City has the option to adopt assessments at any level of cost recovery up to, but not exceeding, the full revenue requirement amount identified herein, City management has indicated that the level of cost recovery included in the proposed Fire Rescue Assessments is the preferred amount in order for the assessments to be comparable to neighboring communities. As indicate previously, the portion of the Fire Rescue Service revenue requirement not recovered in the Fire Rescue Assessment will continue to be funded from the General Fund. 2.3.1 RESIDENTIAL FIRE RESCUE ASSESSMENT The calculated residential assessment rates (presented below) are projected to generate sufficient revenue under either of the two residential assessment structures described in Section 2.2.5 to cover the allocated portion of the Fire Rescue Service Assessment revenue requirement for the residential class. Residential Fire Assessment Summary Tiered Rate Structure • •, • #bf Eq.-Units 1,000,000 369 3.09 1,140 $ 263.00 5,000 930 2.19 2,037 $ 186.00 3,500 5,273 1.42 7,488 $ 121.00 2,000 12,200 1.00 12,200 $ 85.00 1,200 14,214 0.61 8,671 $ 52.00 32,986 31,535 Uniform Rate Structure Number of Residential Units With Developed Space 32,986 Charge per Dwelling Unit $ 85.00 BURTON & ASSOCIATES City of Delray Beach Specialists in Governmental Economics 20 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT The distribution of residential parcels across the tiers in the prior table is presented in the graph below with the number of parcels on the vertical axis and the maximum of the size range in square feet of building area on the horizontal axis: 2.3.2 NON - RESIDENTIAL FIRE RESCUE ASSESSMENT The calculated non - residential assessment rates (presented on the following page) are projected to generate sufficient revenue under either of the two non - residential assessment structures described in Section 2.2.5 to cover the allocated portion of the Fire Rescue Service Assessment revenue requirement for the non - residential class. BURTON &ASSOCIATES City of Delray Beach Specialists in Governmental Economics 21 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT Non - Residential Fire Assessment Summary Tiered Rate Structure BlockTop. 1,000,000 72 15.00 1,080 $ 3,552.00 50,000 19 12.50 238 $ 2,960.00 40,000 23 10.00 230 $ 2,368.00 30,000 43 7.50 323 $ 1,776.00 20,000 41 5.00 205 $ 1,184.00 15,000 70 3.75 263 $ 888.00 10,000 48 2.50 120 $ 592.00 8,000 91 2.00 182 $ 474.00 6,000 139 1.50 209 $ 355.00 4,000 114 1.00 114 $ 237.00 3,000 221 0.75 166 $ 178.00 2,000 305 0.50 153 $ 118.00 1,000 127 0.25 32 $ 59.00 500 731 0.13 95 $ 31.00 2,044 3,407 Uniform Rate Structure Total Sq. Ft. of Developed Space (Bldg. Area) Subject to Assessment 14,072,787 Charge per Sq. Ft. $ 0.054 The distribution of non - residential parcels across the tiers in the table above is presented in the graph below with the number of parcels on the vertical axis and the maximum of the size range in square feet of building area on the horizontal axis: BURTON &ASSOCIATES 22 City of Delray Beach Specialists in Governmental Economics Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT 2.4 CONCLUSIONS & RECOMMENDATIONS The Fire Rescue Assessments presented herein will provide sufficient revenue to fund approximately $3,423,826 of the costs of the Fire Rescue Services portion of the Fire Department cost requirements. Our recommendations regarding the specific residential and non - residential Fire Rescue Assessment rate structures are as follows: 1. Residential Fire Rescue Assessments a. Conclusion — The residential rates structure that apportions an equal assessment to each residential property or dwelling unit does not recognize the differential benefit received by parcels with smaller and larger amounts of developed square feet of space per unit. The primary benefit is protection from the loss of use and value of the developed space on the parcel to each dwelling unit. Therefore, it is our conclusion that the tiered approach provides a better matching of the burden of the assessment upon the dwelling units of each parcel and the benefit received by the units of each parcel to the availability of Fire Rescue Service provided by the City. b. Recommendation — Adopt the tiered residential assessment rates presented in the table below. Residential Fire Assessment Summary Tiered Rate Structure °MalcfrT 4, 4..�'f#f q,;t1 "nits Rate . 1,000,000 369 3.09 1,140 $ 263,00 5,000 930 2.19 2,037 $ 186.00 3,500 5,273 1.42 7,488 $ 121.00 1,200 14,214 0.61 8,671 $ 52.00 32,986 BURTON & ASSOCIATES 23 Specialists in Governmental Economics 31,535 City of Delray Beach Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT 2. Non - Residential Fire Rescue Assessments a. Conclusion — The non - residential apportionment option relying upon the exact amount of square feet of developed space on each non - residential parcel increases the likelihood of potential challenges due to differences in the square feet of developed space in the Property Appraiser's records and measurements that may be taken by property owners. Also, the differential benefit received by a parcel does not change materially for each additional square foot of developed space, but rather changes with order of magnitude differences in the amount of develop space. Therefore, it is our conclusion that the tiered approach provides a better matching of the burden of the assessment upon the parcel and the benefit received by the dwelling units on each parcel to the availability of Fire Rescue Service provided by the City. b. Recommendation — Adopt the tiered non - residential assessment rates presented in the table below. C. Non - Residential Fire Assessment Summary Tiered Rate Structure BURTON &ASSOCIATES City of Delray Beach Specialists in Governmental Economics 24 Final Report Block .. Frequency ECU #of Units Rate 1,000,000 72 15.00 1,080 $ 3,552.00 50,000 19 12.50 238 $ 2,960.00 40,000 23 10.00 230 $ 2,368.00 30,000 43 7.50 323 $ 1,776.00 20,000 41 5.00 205 $ 1,184.00 15,000 70 3.75 263 $ 888.00 10,000 48 2.50 120 $ 592.00 8,000 91 2.00 182 $ 474.00 6,000 139 1.50 209 $ 355.00 4,000 114 1.00 114 $ 237.00 3,000 221 0.75 166 $ 178.00 2,000 305 0.50 153 $ 118.00 1,000 127 0.25 32 $ 59.00 500 731 0.13 95 $ 31.00 2,044 3,407 BURTON &ASSOCIATES City of Delray Beach Specialists in Governmental Economics 24 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT 2.5 SURVEY OF OTHER JURISDICTIONS The schedule on the following page provides a graphical representation of the average fire assessment for a typical single- family residential dwelling in other jurisdictions for FY 2011 and FY 2012. It is important to note that this survey does not identify nor make adjustments for municipalities that have adopted a partial cost recovery fire assessment. Therefore, this survey is solely a comparative market analysis of adopted fire assessments and does not necessarily reflect the actual unit cost of providing fire protection services for a typical single- family dwelling unit located within the governmental boundaries of the entities surveyed. We have identified on the survey where the City would be based upon the proposed residential Fire Rescue Assessment for a typical single - family home contained herein for comparative purposes. BURTON &ASSOCIATES City of Delray Beach Specialists in Governmental Economics 25 Final Report FIRE RESCUE ASSESSMENT STUDY 2. CALCULATION OF THE ASSESSMENT FY 2011 & 2012 Fire Assessment Fee Comparison Survey Hollywood Deerfield Beach Fort Lauderdale Coral Springs Pompano Beach Boynton Beach Boca Raton 0 20 40 60 8 100 120 140 160 180 200 Boca Raton leach I Pompano Coral Springs Fort Lauderdale i Deerfield Beach Hollywood ■FY 2012 Fee 80 88 jBeac 128.77 135 143 189 ■FY 2011 Fee 60 68 114.84 j 135 1 143 159 Delray Beach Proposed Average Residential Assessment BURTON & Assocwu 26 City of Delray Beach Specialists in Governmental Economics Final Report January 9, 2012 Nielson S. McDuffie, Mayor City of Delray Beach 200 N.W. 1 S1 Avenue Delray Beach, FL 33444 Reply To: West Palm Beach RE: City of Delray Beach Fire Protection Service Assessment Opinion Dear Mayor Duffie: The Firm of Lewis, Longman & Walker, P.A. has consulted with Burton & Associates in the development of a proposed non -ad valorem assessment (the fire protection assessment) which, if adopted, will fund a substantial portion of the City of Delray Beach's (the "City ") year - to- year costs of providing fire protection services throughout the City. We have been asked to provide an opinion as to whether the assessment recommended by Burton & Associates may be legally imposed and collected by the City. In order to provide the requested opinion, we have undertaken the following preliminary tasks: 1, Consultation with Burton & Associates' assessment specialists and City Staff in the development of an assessment methodology and program. 2'. Review of the proposed Fire Assessment Study developed by Burton & Associates. 3. Review of the draft City resolution scheduled for final adoption January 13, 2012. 4. Legal research and review of applicable Florida Statutes and case law relating to the imposition and collection of non -ad valorem assessments. BRADENTON 1001 Third Avenue West Suite 670 Bradenton, Florida 34205 p 1941-7084040 - 11941-708-4024 0005635&1 See Things Dfferently- JACKSONVILLE 245 Riverside Avenue Suite 150 Jacksonville, Florida 32202 P 1904.353 -6410 - f1904 -353 -7619 TALLAHASSEE 315 South Calhoun Street Suite 830 Tallahassee, Florida 32301 p1850. 222.5702 - 11850. 224.9242 www.11w- law.com WEST PALM BEACH 515 North Flagler Drive Suite 1500 West Palm Beach, Florida 33401 p1561.640 -0820 • f1561.640 -8202 LEWIS iI', LONGMAN & . ��. � WALKER ! P.A. A T T O R N E Y S A T L A W January 9, 2012 Nielson S. McDuffie, Mayor City of Delray Beach 200 N.W. 1 S1 Avenue Delray Beach, FL 33444 Reply To: West Palm Beach RE: City of Delray Beach Fire Protection Service Assessment Opinion Dear Mayor Duffie: The Firm of Lewis, Longman & Walker, P.A. has consulted with Burton & Associates in the development of a proposed non -ad valorem assessment (the fire protection assessment) which, if adopted, will fund a substantial portion of the City of Delray Beach's (the "City ") year - to- year costs of providing fire protection services throughout the City. We have been asked to provide an opinion as to whether the assessment recommended by Burton & Associates may be legally imposed and collected by the City. In order to provide the requested opinion, we have undertaken the following preliminary tasks: 1, Consultation with Burton & Associates' assessment specialists and City Staff in the development of an assessment methodology and program. 2'. Review of the proposed Fire Assessment Study developed by Burton & Associates. 3. Review of the draft City resolution scheduled for final adoption January 13, 2012. 4. Legal research and review of applicable Florida Statutes and case law relating to the imposition and collection of non -ad valorem assessments. BRADENTON 1001 Third Avenue West Suite 670 Bradenton, Florida 34205 p 1941-7084040 - 11941-708-4024 0005635&1 See Things Dfferently- JACKSONVILLE 245 Riverside Avenue Suite 150 Jacksonville, Florida 32202 P 1904.353 -6410 - f1904 -353 -7619 TALLAHASSEE 315 South Calhoun Street Suite 830 Tallahassee, Florida 32301 p1850. 222.5702 - 11850. 224.9242 www.11w- law.com WEST PALM BEACH 515 North Flagler Drive Suite 1500 West Palm Beach, Florida 33401 p1561.640 -0820 • f1561.640 -8202 Nielson S. McDuffie, Mayor January 9, 2012 Page 2 Our opinion is based upon the following legal analysis: A. General Background. Non -ad valorem assessments are distinguishable from taxes (though both are mandatory) in that a legally valid assessment: [M]ust confer a specific benefit on the land burdened by the assessment; and It is imposed upon the theory that that portion of the community which is required to bear it, receives some special or peculiar benefit in the enhancement of value of the property against which it is imposed as a result of the improvement made with the proceeds of the special assessment. City of Boca Raton v. State, 595 So. 2d 25, 29 (Fla. 1992); Collier County v. State 733 So. 2d 1012, 1016, 1017 (Fla. 1999). It is well settled that counties and cities are generally authorized to impose and collect special assessments by ordinance as a result of their constitutional grant of home rule power. Id, at 30. Art. VIII fl, Fla. Const.; §125,01(l), Fl. Stat. Since at least 1969, fire protection service non -ad valorem assessments levied by local governments have been regarded as valid non -ad valorem assessments by the Florida Supreme Court. Fire District No. 1 of Polk CoRpV v Jenkins 221 So. 2d 740 (Fla. 1969); South Trail Fire Control District, Sarasota County v State 273 So. 2d 380 (Fla. 1973). As recently as 1997 and 2002, the Supreme Court has validated fire rescue services financed by non -ad valorem assessments for the entire unincorporated area of Lake County and the cities of Minneola, Lady Lake and North Lauderdale. Lake County v. Water Oak Management Corporation 695 So. 2d 667, 668 (Fla. 1997). Cijy of North Lauderdale v. SMM Properties, Inc. 825 So. 2d 343 (Fla. 2002). See also Desiderio Corporation v. City of Delray Beach 39 So. 3d 487 (Fla. 41h DCA) In order for such non -ad valorem assessments to be legally valid, they must pass a two - prong test. First, the assessment must provide a special benefit to the assessed property. Second, the assessment for services must be properly apportioned. Lake County at 669. The determination as to special benefit and proper apportionment are questions of fact for a 00058353 -t Nielson S. McDuffie, Mayor January 9, 2012 Page 3 legislative body (in this case the City Commission), not the judiciary. The Supreme Court has stated that: [t]he legislative determination as to the existence of special benefits and as to the apportionment of the cost of these benefits should be upheld unless the determination is arbitrary. Sarasota County v. Sarasota Church of Christ Inc 667 So. 2d 180, 184 (Fla. 1995). B. Special Benefit. The Supreme Court has opined that the test of special benefit is: [w]hether there is a logical relationship between the services provided and the benefit to real property. (Cities omitted). Lake County v. Water Oak Management Corporation at 669. In Lake County the court concluded that while fire protection services were generally available to the community at large, the most substantial benefit from these services were to owners of real property. Id at 669. This finding is consistent with the earlier determination in South Trail Fire Control District Sarasota (county v State. (The Supreme Court determined that fire protection benefited all property). Based upon the foregoing, the City may determine that there is a logical relationship between the provision of fire protection services and benefit to real property. The legislative determination of such a relationship based upon the facts presented to the Commission satisfies the special benefit requirement imposed by the Supreme Court for the levy of a valid non -ad valorem assessment. The analysis that has been presented to the Commission by Burton & Associates demonstrates that there is a logical relationship and that substantially all real property within the City receives special benefits from the provision of fire protection services. These benefits can include reduced insurance premiums, enhanced public health and safety, increased value of business property and better protection to tenants which should reflect in higher rental charges for property. Lake County at 669. aoose353.i Nielson S. McDuffie, Mayor January 9, 2012 Page 4 C. Proper Apportionment. A valid non -ad valorem assessment which provides a special benefit in the form of a service or capital improvement to benefited properties must also be: [fJairly and reasonably apportioned upon the properties that receive the .... benefit. Cily of Boca Raton v. State, 595 So. 2d at 29. Per Sarasota County, the determination of reasonableness of apportionment is a legislative determination left to the City Commission and should be upheld unless the determination is arbitrary. Sarasota County at 184. The Burton & Associates report proposes an allocation of assessments among benefited property based upon relative land use (residential and non - residential) and square footage. Similar apportionment methodologies have been previously validated. Cijy of Boca Raton v. State. D. Assessment Collection Procedures The City has, in past years, utilized, and intends to continue utilizing Section 197.3632, Florida Statutes, to impose and collect the referenced non -ad valorem assessments beginning in fiscal year 2012 /2013. The referenced statute requires individual first -class mail notice to all property owners upon whom the non -ad valorem assessment is to be imposed and adoption of the assessment roll at a public hearing if: 1. The non -ad valorem assessment is levied for the first time; 2. The non -ad valorem assessment is increased beyond the maximum rate authorized by law or judicial decree at the time of initial imposition; 3. The local government's boundaries have changed, unless all newly affected property owners have provided written consent for such assessment to the local governing board; or 4. There is a change in the purpose for such assessment or in the use of the revenue generated by such assessment. § 197.3632(4)(a), Fla. Stat. In a case rendered by the 4h District Court of AXpeal, Atlantic Gulf Communities Corporation v. City of Port St Lucie, 34 So. 2d 1208 (Fla. 4 DCA, 1999), the court determined 00058353 -1 Nielson S. McDuffie, Mayor January 9, 2012 Page 5 that unless the notice to benefited property owners references the fact that the assessments will continue for multiple years and conceivably increase, any subsequent assessment or increase in assessment must honor the entire notice and public hearing process in Section 197.3632, Florida Statutes. In Atlantic Gulf, the City clearly failed to provide such notice and attempted to collect stormwater assessments for multiple years and raise the assessments from time to time. Atlantic Gulf_ Communities Corporation v. City of Port St. Lucie, 734 So. 2d 1208 (Fla. 41' DCA 1999), rev. denied, 744 So.2d 453 (Fla. 1999). In the matter of the proposed City assessment, the notices to individual property owners and the Burton & Associates' analysis disclose the fact that the assessment is to continue indefinitely. Hence, the proposed notice of assessments to all landowners fully complies with the requirements of the referenced case and Section 197.3632(4), Florida Statutes, for a valid multi -year assessment. Further, Section 197.3632(6), Florida Statutes, states: (6) If the non -ad valorem assessment is to be collected for a period of more than one year or is to be amortized over a number of years, the local governing board shall so specify and shall not be required to annually adopt the non -ad valorem assessment roll and shall not be required to provide individual notices to each taxpayer unless the provisions of subsection (4) apply. Therefore, pursuant to the referenced statute, the notice and hearings specified by Section 197.3634(4)(b), Florida Statutes, will not be required in subsequent years so long as the assessment methodology or assessment rates are not modified. For fiscal year 2011 /2012, the City intends to utilize the provisions of Section 170.201(1), Florida Statutes, to directly collect assessments. Section 170.201(1) states in part: [TJthe governing body of a municipality may apportion costs of each assessments based on: (a) the front or square footage of each parcel of land; or (b) an alternative methodology so long as the amount of the assessment for each parcel of land is not in excess of the proportionate benefits as compared with other assessments on other parcels of land. ooOM53 -, Nielson S. McDuffie, Mayor January 9, 2012 Page 6 In the Firm's opinion all notice and related provisions of Chapter 170, Florida Statutes, have been satisfied. Further, the Burton report clearly states that all assessments are to be levied in proportion to the special benefit received by fire rescue services. It is therefore the Firm's opinion that the relevant provisions of Chapter 170, Florida Statutes, have been satisfied. E. Conclusions and Opinions In reliance upon the documents reviewed, statutory interpretation and case analysis, the Firm's general conclusion and opinion is that the fire protection assessment to be imposed by the City is consistent with the special benefit and reasonable apportionment requirements for a valid non -ad valorem assessment. Lake County v. Water Oak Management Corporation 695 So. 2d 667 (Fla. 1997) Sarasota Coun!y v. Sarasota County Church of Christ, 667 So. 2d 180 (Fla. 1995). Based upon the foregoing the Firm is of the opinion that: 1. The City is authorized, pursuant to its local home rule power and referenced case law to levy, impose and collect fire protection assessments to fund provision of fire protection services within the City. 2. The notice procedures employed by the City provide all property owners with notice that the assessment will be collected for multiple years. Therefore, pursuant to Section 197.3632(6), Florida Statutes, the City may collect fire protection assessments for multiple years without the necessity of annually undertaking the individual notice and hearing procedures in Section 197.3632(4), Florida Statutes, unless the cap rate in its adopted ordinance or the methodology is modified in some manner. 3. All notice and. other relevant provisions of Chapter 170, Florida Statutes have been satisfied. 4. The fire protection service to be provided by the City confers a special benefit upon all assessed real property within the City and the Burton & Associates methodology proposes a fair and reasonable apportionment of the assessment among benefited properties. 00058353 -i Nielson S. McDuffie, Mayor January 9, 2012 Page 7 In reliance upon the statutory interpretation and case law analysis contained herein, the Firm's conclusion is that the fire protection assessment to be imposed by the City is consistent with the special benefit and reasonable apportionment requirements for a valid, non -ad valorem assessment. Lake County v. Water Oak Management Corporation; Sarasota Count;y v. Sarasota County Church of Christ. Thank you for the opportunity to provide this opinion to the City. Sincerely yours - -- J� ' J F �- Terry E. Lewis For the Firm of Lewis, Longman & Walker, P.A. TEL/bas c: All City Commissioners Brian Shutt, Esquire - City Attorney Mr. Michael E. Burton — Burton & Associates WOW53 -, RECEIVel) DEC 27 2011 GITY imANAGER Randall A. Hoffman 75 Indian Pass Stormville, NY 12582-5220 (845-629-2546) Attn: City Commission of the City of Delray Beach Richard Reade, City Manager 100 N.W. I't Avenue Delray Beach, Florida 33444 Please be informed that all matters pertaining to 185 A, High Point Terrace East, Delray Beach, Florida parcel # 12434618071850010 should be sent to Randall A. Hoffman at the above address. Find enclosed a copy of the Letters of Administration issued by the circuit court for Palm Beach County, Florida. Thank you anticipation for your cooperation, Randall A. Hoffman IN THE CIRCUIT COURT FOR PALM BEACH COUNTY, FLORIDA PROBATE DIVISION FILE NO:,,(,,.j u i ic XkWS:2— DIVISION IN RE: ESTATE OF ARTHUR E. HOFFMAN, JR., deceased LETTERS OF ADMINISTRATION (Single Personal Representative) -4 QQ (-n Or .v' TO ALL WHOM IT MAY CONCERN WHEREAS, ARTHUR E. HOFFMAN, JR., a resident of CONNECTICUT died on JULY 8, 2011, owning assets in the State of Florida, and, WHEREAS, RANDALL HOFFMAN has been appointed personal representative of the estate of the decedent and has performed all acts prerequisite to issuance of Letters of Administration in the estate, NOW, THEREFORE, 1, the undersigned circuit judge, declare RANDALL HOFFMAN to be duly qualified under the laws of the State of Florida to act as personal representative of the estate of: ARTHUR E. HOFFMAN, JR., deceased, with full power to administer the estate according to law; to ask, demand, sue for, recover and receive the property of the decedent-, to pay the debts of the decedent as far as the assets of the estate will permit and the law directs; and to make distribution of the estate according to law. ORDERED on < 2011. December 21, 2011 Mr. Richard Reode City Manager 100 NW 1St Avenue Delray Beach, Florida 33444 -2612 Sir, 1 have received your letter informing me that 1 maybe subjected to a "non ad- valorem assessment of $121.00 ..imposed for fisca1.2011 /2012 and thereafter with the use of the tax bill collection method authorized by section 197.3632, Florida Statutes. Failure to pay this or any non ad- valorem assessment will cause a tax certificate to be issued against the property which may result in a loss of title." My wife and I have lived in Delray for 30 years and have never received such a ominous and threatening letter from the City of Delray. We are gravely concerned by this new president and we fear that this new method of arbitrary taxation will grow and be open ended to the degree that we will be forced from our home. You explain in your letter that the "fire rescue services" are the beneficiaries of this windfall. What about the firemen, the police, the water department et al., and maybe all the city employees you included. I would hope that my fellow residents voice a similar concern and participate in the resolution of what was not adequately explained in your letter by attending the January 17 meeting at 100 NW 1" Avenue, at 7 p.m. in the City Commission Chambers. Respectfully, Pffl- Richard • •i 970 Iris Drive Delray Beach, Florida 33483 From: BEAT109(a)aol.com 1'_maiito:BEAT109 @aol.com1 Sent: Monday, December 19, 20113:06 PM To: Reade, Richard Subject: non ad- valorem assessment Pre Parcel # 12434607140002520 2060 NW 15 Place, Delray Beach, Fl Beatrice R Peiffer owner Dear Mr.Rea de:: Please be advised I am not in favor of non ad- valorem assessment referred to in your letter of December 9, 2011 i DECEMBER 19,2011 RE: PARCEL NO.: 12434616D60143000 at 60 VENETIAN DR. 300 -N I WILL NOT BE AVAILABLE TO ATTEND THE FINAL PUBLIC HEARING ON JANUARY 17, 2012 AT WHICH TIME THE CONSIDERATION IMPOSING NON AD- VALOREM ASSESSMENTS, ADOPTING A NON AD- VALOREM ASSESSMENT ROLL, AND AUTHORIZING 1) DIRECT BILLING OF THE NON AD- VALOREM ASSESSMENTS AUTHORIZED BY SECTION 170.201, FLORIDA STAUTES FOR FISCAL YEAR 2011 -2012, AND 2) USE OF THE TAX BILL COLLECTION METHOD AUTHORIZED BY SECTION 197 -3632, FLORIDA STATUTES, FOR FISCAL YEAR 2012/2013 AND ANNUALLY THEREAFTER TO COLLECT NON AD- VALOREM ASSESSMENTS IMPOSED AGAINST BENEFITTED PROPERTIES WITHIN THE CITY OF DELRAY BEACH. 1 WISH TO GO ON RECORD AS BEING OPPOSED TO THE ABOVE ASSESSMENTS AND ANYTHING CONNECTED TO SAME. TIME FOR THE CITY TO TIGHTEN IT'S BELTS AS ALL ITS RESIDENTS HAVE HAD TO DO DRASTICALLY. THANK YOU. RESPECTFULLY, E DAVID A. PAGLIA Wednesday, December 28, 2011 City City of Delray Beach City Commission Chambers 100 NW 1 s' Ave Delray Beach, F1.33444 Re: Letter dated December 9, Re: Parcel No.: 1243619320190051 at 728 Lago Rd. E -1 Attn: Ciry Clerk As per the above mentioned letter per non -ad- valorem assessment to be proposed, let it be known that I object to such an assessment. s � The taxes are all I can handle and any new additions would be prohibitive. Please regard this as my definitive answer to your inquiry. Nancy McFal.da (Owner) -/ 728 Lago Road Unit E -1� Delray Beach, Fla. 33445 JAN 0 6 2012 CITY C,,I-,C-RK E. C E 11 v E JAN 2012 CITY COMMISSION OAI� 520 Enfield Road Delray Beach, Fl 33444 FIECEIVED JAN 0 6 7012 CI-" (-',LERK Metroplex, Tn.c. I Professional Real Estate Services 200 East Randolph Street, Suite 2100 • Chicago, IL 60(,01 -6432 • Direct: 312/726-5600 • Fax: 312/345 -3260 Sent via email (reade(a >rnydelraybeach.eom and by Facsimile - 561- 243 -7199) January 6, 2012 City Commission of Delray Beach 100 NW 1 st Avenue Delray Beach, Florida 33444 Re: January 17, 2012 Non Ad- Valorem Assessment Public Hearing Parcel No.: 12434629080010000; 600 Lindell Blvd., Delray Beach Gentlemen: We are the authorized Management Agent for the owners of the referenced parcel and received your December 9, 2011 notice relative to a non ad- valorem assessment that will be considered for approval by the City Commission subsequent to a public hearing to be held on January 17, 2012. It is our understanding that the proposed assessment is designed to fund the costs associated with fire rescue service within the City. While we and the owners of the referenced parcel would not argue that proper funding of services such as this are vital to the safety and prosperity of the community, we would argue that the methodology used to determine the amounts assessed should be modified to more appropriately apply the assessment to non - single family residential properties. The referenced parcel, Lake Delray Apartments, is a 404 unit low income, tax credit, senior housing rental apartment complex. Rents for these units are regulated by tax credit regulations and limited by funding available from the local housing authorities. We have been unable to increase rents in the past three years due to the lack of funding from the housing authorities. While the costs of operating and providing affordable senior housing in Delray Beach continue to rise, housing authority restrictions result in lower income to offset the operating cost increases. In addition, the City of Delray Beach imposed a mandate for this property that required that we install emergency generators at a cost of approximately $450,000. To our knowledge, this mandate applied solely to this apartment complex and no other rental properties in Delray Beach experienced this unanticipated expenditure. If passed, this new assessment will result in an additional tax on this parcel of $21,008 for fiscal year 2012/2013 and combined with the other income /expenditures noted as well as other economic factors, the result is a tremendous financial burden to the property and its owners. 2 EQUAL HOUSING F: (Real Estate 74sesILDR01914ssessment CorrespondenceWR Non Advalorem Assmi Objection 01.06.12.doc OPPORYUHIYY As previously stated, we are not arguing that additional funding is needed for a very important life service, but do argue that the there should be at least one if not two additional assessment brackets for lower square footage and a lower per unit fee that would be more applicable to multi - family housing properties. This is especially appropriate to this property, in our opinion, because the 404 apartment units are clustered together and the fire safety systems within the buildings are far more effective than would be installed in a typical single family home. This obviously would translate to a much lower cost to protect this one 404 unit community than 404 individual single family homes. We therefore petition the Commission to revisit the methodology of assessing each property and ask that you include consideration for the type of residential property before moving forward with any assessment. Thank you, Eleanor A. Hannagan Tax Administrator Metroplex, Inc. Agent for Owner, Delray Elderly Limited Partnership EMAI. HOUSING F. Weal Estate T=esiLDR01911ssessnten1 CorrespondenceWR Non Advnlorem Assort Objection 01.06.12.doc OPPORTUNITY FYI... Thank you. Have a great day! Richard J. Reade Sustainability Officer /Public Information Officer City of Delray Beach, Florida Tel: 561.243.7009 Fax: 561.243.7199 E -Mail: reade@mydelraybeach.com Web: www.mvdeiraybeach.com Follow CityDelrayBeach on Twitter Please consider the environment before printing this email. http: / /www.epa.gov /watersense/ From: Larry [mailto:wlkenny @optonline.net] Sent: Wednesday, December 28, 20117:16 PM To: Reade, Richard Subject: Re: non ad- valorem assessment 1 truly appreciate your making the effort to respond! From: Reade, Richard Sent: Monday, December 19, 2011 11:01 AM To: Nubin, Chevelle; Gaskins, Lanelda Cc: Harden, David; Smith, Douglas; Barcinski, Robert Subject: FW: Please find enclosed information that was received regarding the Fire Assessment Public Hearing on January 17th Thank you. Have a great day! Richard J. Reade 1 Sustainability Officer /Public Information Officer City of Delray Beach, Florida Tel: 561.243.7009 Fax: 561.243.7199 E -Mail: reade@mydelraybeach.com Web: www.mydelraybeach.com Follow CityDelrayBeach on Twitter atPlease consider the environment before printing this email. EPA 441. WaterSense PAXINUR http://www.epa.gov/watersense/ From: Perez, Katie Sent: Monday, December 19, 20119:33 AM To: Reade, Richard Subject: Sherry Hillman opposes this fee. She does not want a call back she wants to say NO to adding this fee. Thanks! Katie Perez Customer Service Assistant City of Delray Beach 100 NW 1St Avenue Delray Beach, FL 33444 Phone: 561- 243 -7000 Email: perezk@mydelraybeach.com 7 tin R1 C'a I 6C601 c 4(�_ nr - fob =-fin LA December 9, 2011 IIJIIullnln1111111lnl1l ►,lul1lul1lu1llnl1111111111111 / i � Hegstrom William J 'S.632(r -4 225 NE 22nd St W J & Grace A Hegstrom Tr Titl Delray Beach, FL 33444 -4221 RE: PARCEL NO.: 12434604000007160 at 225 NE 22ND ST NOTICE OF PUBLIC HEARING: You are hereby notified that the City Commission of the City of Delray Beach, Florida, will conduct a final public hearing on January 17, 2012 to consider imposing non ad- valorem assessments, adopting a non ad- valorem assessment roll, and authorizing 1) direct billing of the non ad- valorem assessments authorized by Section. 170,201, Florida Statutes for fiscal year 2011/2012, and 2) use of the tax bill collection method authorized by Section 197.3632, Florida Statutes, for fiscal year 2012/2013 and annually thereafter to collect non ad- valorem assessments imposed . against benef~itted properties within the City of Delray Beach, including the above- referenced parcel, pursuant to the proposed City. of Delray, Beach Resolution. The Ci ty Commission may continue hearings on the. matter and the date and time for continuance shall be announced at the first public hearing. The decision on whether to impose the assessments will be made either at this public hearing at the time. and date listed below or at a continuance of the public hearing to be held, if necessary. TIME AND PLACE OF PUBLIC HEARING: The final public hearing will be held on January 17, 2012, at 7:00 PM at the City Commission Chambers, 100 NW 1st Avenue, Delray Beach, Florida 33444. You and all other affected property owners have a right to attend and speak at the hearing. You may also file written objections and/or comments with the City Commission within thirty (3 0) days of the date of this notice.. If a person decides to appeal any decision made by the City Commission with respect to any matter considered at such meeting or hearing, he or she will need a record' of the proceedings, and for such.purpose, may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. PURPOSE: If imposed, the non ad- valorem assessments will fund a portion of the cost of the provision of essential services relating to fire rescue service within'the City. A more specific description of the services is set forth in the.Resolution. Copies of the above- referenced Resolution and the non ad- valorem assessment roll are on file with and may viewed during normal business hours at the Office of the City Clerk, 100 NW l st Avenue, Delray Beach, Florida 33444. If the non. ad- valorem assessment is imposed for fiscal year 201.1 /2012 as authorized by Section 170.201, Florida Statutes: 1) it will be direct billed via first class mail and you will be responsible for remittingpayment to the City as the assessment will not be `J collected on your tax bill, and 2) if imposed for fiscal year 2011/2012 the assessment will result in a lien on the property until paid. .If the non ad- valorem assessment is imposed for fiscal year 2012/2013 and thereafter with the use of the tax bill collection method authorized by Section. 197.3632, Florida Statutes, failure to pay this, or any non ad- valorem assessment will cause a tax certificate to be issued against the property which may result in a loss of title. APPORTIONMENT METHOD AND ASSESSMENT RATES: For the purpose of this non ad- valorem assessment, benefited parcels are all parcels within the City limits of the City of Delray Beach except for undeveloped. land with Department of Revenue classification as Vacant. In. addition., churches and public schools are exempt from the non ad- valorem assessment as are federal buildings, rivers and lakes, right -of- way/buffers, etc. In addition special district property, City property, and County property are excluded from the non ad- valorem assessment. For the purposes of this assessment, the assessment for benefited parcels shall be determined.based upon the developed area. on the parcel and the rate schedules as follows: Residential Size Range (Developed S . Ft. Assessment Amount > 5,000 $263 3,501 — 5 000 $186 2,001— 3,500 $121 1,201 — 2,000 $85 1,200 and less $52 If imposed, the non ad- valorem assessment will be billed directly via first class .mail for the fiscal year 2011/2012 assessment and it will appear on the fiscal year 2012/2013 tax bill and each year thereafter and shall include a portion of the costs associated with providing, fire rescue service and a prorata share of.the total cost of collecting the assessments. If imposed, the total non ad- valorem assessment to be levied against your benefited parcel will be $118 for fiscal year 2011%2012 and $1.18 for fiscal year 2012/2013 and annually thereafter. The total amount of revenue to be collected by the City of Delray Beach annually under the assessment program is $3,368,713, If you have any questions, please contact Richard Reade, City Manager's Office,. (561) 243 -7009. 2 STATE OF FLORIDA PALM BEACH COUNTY Before the undersigned authority personally appeared Chevelle D. Nubin, CMC who on oath says she is the City Clerk. for the City of Delray Beach, Florida. Afhant further says that as the City Clerk of the City of Delray Beach, Florida, sheds responsible for providing first class, mail notice to all owners of benefitted real property, upon which non -ad valorem assessments for fire rescue services to be provided by the City of Delray Beach are to be levied. Affiant further states that she has provided such notice by mail and arranged for publication of notice by publication as required by Chapters 170 and 197, Florida Statutes. Further Affiant sayeth not. Signature I i!. . Sworn to and subscribed before me this `.' ` day of December 2011 by Chevelle: D. Nubin who is personally known to me. Signaturturee KIMBERLY M. WYNN NelAry Public - St ale of fWW& • My Comm. Explres Nov 0. 2016 Cammlesion N EE 144031 f,';, Bonded Through N3110n31 IWM Asia. -J January 6, 2012 Mr. Richard Reade, City Manager 100 NW 1" Avenue Delray Breach, FL 33444 -2612 In re: Non -ad- valorem assessment for Delray Beach Dear Mr. Reade: I have received your letter informing me that I may be subjected to a non -ad- valorem assessment authorized by 170.201, Florida. Statutes, for fiscal year 2011/2012. Further, you state that, if the non ad- valorem assessment imposed for fiscal 2011/2012, and thereafter, with the use of the tax bill collection method authorized by section 197.3632, Florida Statutes, is not paid, a tax certificate will be issued against the property which may result in a loss of tit] e. (Underline added). I am extremely concerned that this new method of arbitrary taxation will continue and become open -ended to the degree that I will be forced from my 'home due to rising tax costs. You explain in your letter that the "fire rescue services" are the beneficiaries of this windfall. What about the firemen, the policemen, the water department, et. al., and maybe all the city employees - you included? Will I be taxed- additionally for their services in future assessments? I vehemently object to the assessment of the non -ad- valorem tax and will attend the January 17, 2012, meeting at 100 NW 1" Avenue,. Delray Beach, FL at 7:00 p.m. in the City Commission Chambers to express my opposition to this arbitrary new tax. Respectfully, i. January 6, 2012 Mr. Richard Reade, City Manager 100 NW I" Avenue Delray Beach, FL 33444 -2612 In re: Non -ad- valorem assessment.for Delray Beach Dear Mr. Reade: I have received your letter informing me that I may be subjected to a non -ad- valorem assessment authorized by 170,201, Florida Statutes, for fiscal year 2011/2012. Further, you state that, if the non ad = valorem assessment unposed for fiscal 2011/2012, and thereafter, with the use of the tax bill collection method authorized by section 197.3632, Florida Statutes, is not paid, a tax certificate will be issued against the property which may result in a loss of title. (Underline added). I am extremely concerned that this new method of arbitrary taxation will continue and become open- ended to the degree that I will be forced from my home due to rising tax costs. You explain in your letter that the "fire rescue services" are the beneficiaries of this windfall. What about the firemen, the policemen, the water department, et. al., and maybe all the city employees - you included? Will I be taxed additionally for their services in future assessments? I vehemently object to the assessment of the non -ad- valorem tax and will: attend the January 17, 2012, meeting at 100 NW 1" Avenue, Delray Beach, FL at 7:00 p.m. in the City Commission Chambers to express my opposition to this arbitrary new tam spec t r / �__j 112,,- 2,c)12, January 6, 2012 Mr. Richard Reade, City Manager 100 NW 1st Avenue Delray Beach, FL 33444 -2612 In re: Non -ad- valorem assessment for Delray Beach Dear Mr. Reade: I have received your letter informing me that I may be subjected to a non -ad- valorem assessment authorized by 170.201, Florida Statutes, for fiscal year 2011/2012. Further,. you state that, if the non ad- valorem assessment unposed for fiscal 2011/2012, and thereafter, with the use of the tax bill collection method authorized by section 197.3632, Florida Statutes, is not paid, a tax certificate will be issued against the property which may result in a loss of title._ (Underline added). I am extremely concerned that this new method of arbitrary taxation will continue and become open -ended to the degree that I will be forced from my home due to rising tax costs. You explain in your letter that the "fire rescue services" are the beneficiaries of this windfall. What about the firemen, the policemen, the water department, et. al., and maybe all the city employees - you included? Will I be taxed additionally for their services in fixture assessments? I vehemently object to the assessment of the non -ad- valorem tax and will attend the January 17, 2012, meeting at 100 NW l" Avenue, Delray Beach, FL at 7;00 p.m. in the City Commission Chambers to express my opposition to this arbitrary new tax. Respectfully, 01/06/2012 16:46 FA,X 312 345 3260 METROFLEXX,INC. U 002/003 taft,"' JAN -9 2012 CITY COMM I SS I 'fw.F r� j ti'�fi.'�;i;C)�i1:?:, Ins. ! f' t�tosyi�n�l (3s,atl= �t;s14�S +yrvirt�s - ! 1 2110Tco 1: 1Ron<. ti> It" lltFtrim ,Stltlo "It111•t.hirr�t;1�,I (.60601,64- 12•Dircrt,z'12/726A600* 1-*,n_,,1'12/`,:K"-3200 D1U. Sent uitr email and h1" Facsimile -_501 74,x, -709 January 6. 201 2 City CConln'tission of Delray Beach 100 NW Ist Avenue Delray Beach. li'loridn 33444 Re; Jla.nuary 17, 2012 Non Ad- Valorem Assessn�cm Public Bearing Parcel Nlo.: 12434629080010000; 600 1.,indell Blvd- betray 1:3exch Crcntl0nlen: WC tui Ills 1lt1tIl06 (rl TAUnkigenlent Agent. for the owners U the re1:6- 0i)ced parcel and received yr)ur December 9, 2011 notice relative to a non ad- valorom assessment that xvill be considered, fbir approval by the City (.onimission stdise nest to a lulu(; hearing to be hold oil .1 anutrry 17, 2012. it is our understanding that the proposed assessment is desioned to f:lind the gists ttsssocialcd with 9'irc rescue servie;e widlin the City. While we and the owners r11' the re(ercmCd PUCe.l wOuld not argue that proper Funding of servicG:r stick as this are vital to the safety un_tl prosperity Of the 00111mun t} /, WC wOulcl :iii uu 1111,11' their Irlethodologry° used l() detersihic the anloUlItS aSSOssed should be modified to moty dj�pr.oprit�ldy apply the asso�,mlenl to non - single f,mmily rosldential properties,, '1'lle r0' renced parecl, lake Delray Apartrnents, is .a 404 unit low 1mome. tax credit. senior housinp- relital apartment complex. Keeps C01- 01M units trO rt;, united by tax credit regulations and limited by funding ,wailtable from that local housing; atttltorititis. We have beep unuble to increase rents in the I ?alit tbtec years, clue to the lack of funding; frennl the housing, authorities. While the costs of operming and providing affordable scraiol. bo.t1811) in Delray Beach contint.1 ` 10 riSC, 110LISiRE, tat•tt'h017ity re s-irictions result in tower income to 0I15cll the operating cost. ivereases. In addition, the City of 001ray Beach imposed a mandate 11or this property that required that we Install emergency venerators at cost <.1' approximately .$450,000. To our ktletwledge, this mandate applied .solely to this apartment complex and no other rental properties in Delray Boesch expericnced tllis tuatutticipawd eapendilure. II'passed, (his new assossmom will rt'$ull In an additional tax can t.bi,5 pwcel ol* $21,008. for fiscal year 2012/201.3 and combined with the other inO:ome /expendiatres nmt d as well m other economic factorti, the result is ca tremendous financial burden to t.hc property laid its owners. :•I•ls. ,:::.rrllrl: !•:'iuY7l +a51fr Atli J' /.�li { /f %V�,..l,Nln•Irll tvl.•.,,nxaT'!xr' /.i l�rV UI /11 ✓•17RIfi •q A, —, Ohr, Om, 01 de, 01/06/2012 16:47 FAX 312 345 3260 HETROPLEX,INC. As previously 8101- :d, we nrt- 1)(A ;irg. ring thaat adclitional funding is needed for a very important life service, but do argue that (lie there should be at least one. if nest two additional assessmcrlt brackets for lower square footage and a lower per unit Fee that would be more applicable to mull- 1a111I1Y housing Properties. This is ctii.)wally appropriate to (his property, in our opinion, because the 4(A apartment units are. clustcrecl tog4thcr and the fiiro safely yyStwis within the buildings are ftu- more cffwive than would be itastalled in El tyPic.il sinLde: tamity hoinc. This obviously would 1-ransl;t:te to ,.i much lower east to protect t11is cane. 404 emit malnwriity than 404. individual single 14mily home,. We therek)re petition (lie Commission to revisit the methodology 01' flsscssulg Cach property- and ask l)r I hat, you include consideration for the tvpe of residw(ic l opesrty b� Rire mewing, l rrweird with ally assessment. 'l"h;inl: you, F'Ieanor A. 1•-lannagan ,ha\ Acirninistrator . Metroplex, inc. Agent for t_)wncr. Delray 1Alderly Limited PaiTlnership ;..m„w'C4:w: F,..jt.�e11•.Npt.• I ... — IPAW V. A.. ua..•. niS.. ra.r nminn.••!I iftN —AJ.aA•14hi:favnt OApYtt•v{ fit. ly..'il.,l;x' d 003 /003 From: Dechicchio, Rosanne Sent: Tuesday, January 03, 2012 12:00 PM To: Nubin, Chevelle; Gaskins, Lanelda Cc: Reade, Richard; Smith, Douglas Subject: FW: Non ad- valorem tax assessment for fire rescue service Please include this into public record comments regarding the Fire Assessment Fee, thanks. Rosanne From: Gupta Shri- QSWI2147 [ mailto: shri .gupta @motorolasolutions.com] Sent: Saturday, December 24, 20116:57 PM To: PIO @mydelraybeach.com Cc: SHOBHA GUPTA Subject: Non ad- valorem tax assessment for fire rescue service Dear madam /sir have received notice for upcoming hearing for additional assessment of taxes on two townhomes that I own in the city. I am really surprised at this additional taxation and it does not seem to be fair on my properties. I am paying over 1 $3100 each on town homes with an area of only 1600 sq ft. This is a tremendous amount of tax on such small property. I acquired these properties in 2003 and the tax level on these properties is same today as in 2003. Since these properties are not homestead, the taxation is extremely high. City is losing taxes because of increase in homestead exemption. It is not fair that homeowners who are already paying high level of taxes should be further taxed to compensate for losses caused by homes that are homestead. I am totally against this increase in taxation. Please put this forward during forthcoming public hearing in January. Thanking you in advance. Shri Gupta Parcel numbers 12434628830000020 /80 Dec 24, 2011 Pa From: Reade, Richard Sent: Friday, December 09, 20114:07 PM To: 'tandme @comcast.net' Cc: Dechicchio, Rosanne; Gaskins, Lanelda; Nubin, Chevelle Subject: RE: Fee Assessment Mr. Goldsmith, Thank you for your E -mail regarding the proposed Fire Assessment Fee. We will forward this note to the City Clerk's Office and ensure that it will be forwarded to the City Commission prior to their consideration of the issue. 1 Again, thank you for you note. Have a great day! Richard J. Reade Sustainability Officer /Public Information Officer City of Delray Beach, Florida Tel: 561.243.7009 Fax: 561.243.7199 E -Mail: re ade@mydeIraybeachIcom Web: www.mvdelravbeach.com Follow CityDelrayBeach on Twitter 6% Please consider the environment before printing this email. http://www.epa.gov/watersense/`- From: Steve Goldsmith fmailto:tandmeacomcast.net] Sent: Friday, December 09, 2011 1:24 PM To: PIO(a)mydelraybeach.com Subject: Fee Assessment Importance: High To Whom it May Concern. So the new loophole is not to increase taxes but have an assessment fee? I have been here for over 32 years and we did just fine without this new way of trying to tax us. If you don't have the money then just reduce expenses, that's the proper way. It's time to start biting the bullet on costs. The free spending days are over, and people don't have the money for additional fees. I'll await your reply Steve 2 W�v , -7 dd Eke d „� �L � , -lItf?A-t 6z Avi" ce.. vi -) 7, L_Al DEC 22 2911 C-0-MMIS'SION . \--ejlVI 0 ✓►-I '-I--!AN YIO V-Ico-1 t C-aA ` 6s, I n� 194 va L.,-e- a ociv. �1(5 yvtk�j Y)l W�PJ-e j v V Y--C, Co m -o v\ sLA- v-,:,c4-. 14- cLe- vex Lct--t- t bLA � ryl 1/,)�CL Vv I v I vi e- Yn-o Y- Ile I-) yyp-�-A Lok Lie- V le 41 V--e. G NO CamrNo I% CLi -w aA Se tv Qsj c e-, It F. , te C-kj-Q- Ck, �AM coA zt ck �J e� d � � q � J C�A iv\ CN 6,�A Objection: To: ad- valorem taxes as per public hearing proposed January 17, 2012 PLIo c 2Q 1 I Ronald P . Godfrey owner of the property located at 215 NE 15C Ave.,Delray Beach, Florida Object to any new tax increase whatsoever. Ronald P. Godfrey Sangita Walia M.D. 700 George Bush Blvd Delray Beach, FL 33483 Dec. 16, 2011 To: Mr. Richard Reade 1001`1. W. 1st Ave Delray Beach, Fl, 33444 Re: Parcel # 12434609320000542 at 700 GEORGE BUSH BLVD Dear Sir, I ain the owner of the property mentioned above. Taxes have doubled in the last 2 years for my property and the value of the property is down. Financial recession, and unemployment has not helped my business. Therefore, please do not levy anymore increases in taxes. Also please . find signatures of two other business owners in this area, who agree with me. Due to the bridge being closed for more than 2. months this year; all of our businesses suffered . The city in turn has not done anything to revitalize George Bush Blvd. I hope you can understand, why we do not want any tax increases. Thank you, please acknowledge receipt of this letter and a response is welcome. 1. Sangita Walia M.D. 2. Zahida Khaliq Salon 777 East 701 George Bush Blvd Delray Beach, FL 33483 3. Mar I..e Y Cheap Frills 701 George Bush Blvd Delray Beach, FL 33483 � Z From: Reade, Richard Sent: Wednesday, December 28, 2011 11:16 AM To: ' Cyndi. Denig @Iifespacecommunities.com' Cc: Agenda Coordinator Subject: FW: Proposed Fire Assessment Fee Attachments: 20111227102359094.pdf Ms. Denig, Thank you for your E -mail regarding the proposed Fire Assessment Fee. Please see below the response to your question regarding the determination of the fee for the Harbor Edge. In addition, I will call to answer any additional questions that you may have. Thank you. Have a great day! Richard J. Reade Sustainability Officer /Public Information Officer City of Delray Beach, Florida Tel: 561.243.7009 Fax: 561.243.7199 E -Mail: reade @mydelraybeach.com Web: www.mvdelravbeach.com Follow CityDelrayBeach on Twitter Please consider the environment before printing this email. FAX. Water, s FARTNIER http://www.epa.gov/watersense From: Andrew Burnham [ mailto: aburnham @burtonandassociates.com] Sent: Tuesday, December 27, 2011 5:16 PM To: Reade, Richard Cc: mburton @burtonandassociates.com; Barcinski, Robert; Smith, Douglas; Harden, David Subject: Re: Proposed Fire Assessment Fee Richard, 1 The property referenced in the attached letter (per the data from the property appraiser) is owned by Lifespace Communities, Inc. and has a multi -unit residential property use code of 620, which is "Life Care / HV. The property has 268 residential units and 570,764 sq. ft. of building area. As with other multi -unit residential properties, the sq. ft. was divided by the number of units to determine the appropriate tier of the residential fire assessment, (in this case the 2,130 sq. ft. per unit place it in the third tier of the residential assessment structure), whereby the fee ($121 per unit) was applied to the total units to determine the annual assessment of $32,428. Sincerely, Andy- On Tue, Dec 27, 2011 at 3:33 PM, Reade, Richard < reade crimydelraybcach.com> wrote: Mike, FYI ... See below. Thank you. Have a great day! Richard J. Reade Sustainability Officer /Public Information Officer City of Delray Beach, Florida Tel: 561.243.7009 Fax: 561.243.7199 E -Mail: reade @mvdelraybeach.com Web: www.mvdelraVbeach.com Follow CityDelrayBeach on Twitter 6% Please consider the environment before printing this email. 7F WaterSense http://www.ePa.gov/watersense/ From: Cyndi Denig [ mailto: Cyndi. Deniq0a lifespacecommunities.com] Sent: Tuesday, December 27, 2011 11:42 AM To: Reade, Richard Subject: Proposed non ad- valorem assessment Mr. Reade, Upon reading the notice of public hearing for the proposed non ad- valorem assessment I have a question about the assessment amount for Harbour's Edge. The table shows a maximum assessment of $3,552 but in a subsequent paragraph the amount for Harbour's Edge is stated at $32,428. How is this amount derived and why is it so high? A copy of the letter is provided as an attachment. Thank you in advance for your prompt attention to this matter. Sincerely, Cyndi Denig Cynd,r;v Director of Financial Services Harbour's Edge 561.526.0128 Phone 561..2.43.0038 Fax e -mail: cyndi. de:. r_ i _g @l,if< >spacecommunities.corrl CONFIDENTIALITY NOTICE - The document accompanying this message contains information belonging to the sender which is intended only for use of the individual or entity named above. Information representing protected health information is subject to the sender's current policies and procedures governing its use and disclosure. Any unauthorized dissemination, distribution or copying of this communication is strictly prohibited. If you are not the intended recipient, or if you have received this message in error please delete it from your system without copying or forwarding it and notify me immediately by reply email or by calling LIFESPACE Communities, Inc. at 515- 288.5805. Andrew Burnham Senior Vice President Burton & Associates 200 Business Park Circle, Ste. 101 St. Augustine, FL 32095 Phone: (904) 247 -0787 Fax: (904) 241 -7708 Cell: (904) 631-5109 December 25, 2011 City Commission City of Delray Beach 100 N.W. 1 st Street Delray Beach, FL 33444 Re: Non ad- valorem assessment to fund Partial cost of fire rescue Gentlemen, RE �� P �mrs b� I �� ir d e" L C I fa 2011 1 ` _Mtl� �J' ` 1 L i Z, 1 V S a,u S I . As noted in the City of Delray Beach's letter of 12/9/11, 1 wish to file an objection to the potential non ad- valorem assessment noted there in. My objections are as follows: 1) No explanation was given as to why this assessment tax is necessary. Since I would have to pay for it, the City has an obligation to provide written information on the necessity of the assessment and not mine to find out why. 2) In particular, there is no explanation as of the necessity to "....fund a portion of the cost...". 3) Since 95% of the calls are for medical assistance /traffic accidents there should not be a variable tax rate on property size. 4) The fact that "other cities" fund their fire rescue services by assessment is not an explanation and is not a requirement for doing so in Delray Beach. 5) There is no reason why fire rescue personnel must be funded from a different source than other City employees. 6) Separate funding for fire rescue will allow the City to treat this tax as a given cost and not consider it as part of the total city operating budget. It will just become an entitlement enhanced by yearly raises to cover "cost of living" expenses for retirements and benefits of the ever expanding number of active and retired fire /rescue personnel. For the reasons note above, 1 urge the City of Delray Beach Commission not to approve the non ad- valorem assessment to fund a portion of the cost of fire rescue. Sincer r, Roy F. Deng Jr. 3631 Sherwood Blvd. Delray Beach, FL 33445 Again, thank you for you note. Have a great day! Richard J. Reade Sustainability Officer /Public Information Officer City of Delray Beach, Florida Tel: 561.243.7009 Fax: 561.243.7199 E -Mail: reade@mydelraybeach.com Web: www.mydelraybeach.com Follow CityDelrayBeach on Twitter Please consider the environment before printing this email. http: / /www.epa.goy /watersense/ From: Gary rmai Ito: gary @oscoconstruction.coml Sent: Friday, December 09, 2011 1:49 PM To: PIO @mydeiraybeach.com Cc: 'Gary Cisco' Subject: RE: Media Release: Notice of Public Hearing - Fire Assessment Fee I see that you wish raise an estimated $3,339,734.00. With this increase in revenue, what is the estimate decrease on our present tax bills for the Fire Department? I see from you announcement, that you are implementing these fees to create a more fair and equitable cost sharing system among the City's residents and businesses. I can only assume you are not trying to increase revenues for the Fire Department. Gary Cisco 138 NE 1St Ave DelrayBeach, Fl. 33444 From: City of Delray Beach jmai Ito: Subscriptions @MyDelrayBeach.coml Sent: Friday, December 09, 2011 1:03 PM To: gary Cisco Subject: Media Release: Notice of Public Hearing - Fire Assessment Fee From: Reade, Richard Sent: Friday, December 09, 20114:08 PM To: 'gary@oscoconstruction.com' Cc: Dechicchio, Rosanne; Nubin, Chevelle; Gaskins, Lanelda Subject: RE: Media Release: Notice of Public Hearing - Fire Assessment Fee Mr. Cisco, Thank you for your E -mail regarding the proposed Fire Assessment Fee. We will forward this note to the City Clerk's Office and ensure that it will be forwarded to the City Commission prior to their consideration of the issue. 1 CITY OF DELRAY BEACH MEDIA RELEASE Notice of Public Hearing - Fire Assessment Fee Tuesday, January 17, 2012 December 9, 2011: The City Commission of the City of Delray Beach, Florida, will conduct a Public Hearing to consider implementing a Fire Assessment Fee for residential and commercial properties on Tuesday, January 17, 2012, in City Hall Commission Chambers, 100 NW 1st Avenue. Public Hearings, which allow for public comment, begin at 7:00 pm. The Fire Assessment Fee, if approved, will fund a portion of the City's essential fire protection services costs (i.e., personnel and operating). This fixed, annual non ad- valorem Assessment Fee would be similar to the fees charged by neighboring communities (i.e., Boca Raton, Boynton Beach, West Palm Beach, etc.) and would create a more fair and equitable cost sharing system among the City's residents and businesses. The total amount of revenue to be collected by the City of Delray Beach annually under the assessment program is estimated to be $3,339,734. The City Commission is expected to take action on this issue at their Regular Meeting on Tuesday, January 17th, 2012, following the requisite Public Hearing. If imposed, the Fire Assessment Fee will be billed directly via first class mail for Fiscal Year 2011 /2012 and will appear on the Fiscal Year 2012/2013 tax bill and each year thereafter. Additional information on the Fire Assessment Fee Public Hearing, Apportionment Method and Assessment Rates has been mailed to all property owners. The City encourages everyone to read the letter and attend the Public Hearing or provide written comments to the City Commission. If you have any questions, contact the City's Public Information Office at (561) 243 -7190 or E -mail PION mydclraybeach.com. Contact: City of Delray Beach Public Information Office (561) 243 -7190 PIO cr.mydelraybeach.com City Commission: Nelson S. "Woodie" McDuffie, Mayor Angeleta Gray, Vice -Mayor Thomas Carney, Deputy Vice -Mayor Adam Frankel, Commissioner Dr. Jay Alperin, Commissioner MyDelrayBeach. cool Follow CitvDelrayBeach on T►vitter Evelyn Celissaint 940 NW 43rd Ave Delray Beach, Fl 33445 Dear City of Commission, DEC 3 rj 207 CITY CLERIK I Evelyne L. Celissaint, parcel# 12424612140010260, am responding to the notice of Public Hearing, I am opposing this decision and I ask that no changes be made. For any further questions please contact me at 561 -573 -9910. Thank you, Evelyne Celissaint Parcel no# 12424612140010260 January 2, 2012 Chevelle D. Nubin, CMC, City Clerk for the City of Delray Beach Office of the Clerk 100 NW 151 Avenue Delray Beach, Florida 33444 Dear Ms. Nubin, I am writing to let you know that I am not in favor of the proposed non ad- valorem tax that is being considered for the property owners of Delray Beach. I understand that if the tax is approved, it will generate an additional 3.34 million in revenue to our annual budget of 22 million. I am in favor of giving the fire rescue services the equipment they need to do their job but I believe cuts somewhere else can provide what is needed. Delray Beach currently has one of the higher millage rates of $23.31 in the local area. I used to live in the city of Boca Raton and the millage rate there is $20.03. The city of Highland Beach has a millage rate of $19.85. 1 do not understand how the city of Delray cannot operate on $23.31 per $1,000 from each resident that owns property. We pay enough taxes. I would respectfully ask that you consider standing up for the citizens of Delray Beach and say "no" to additional taxes and ask where we can cut expenses. Individuals that have property valued less than $50,000 do not pay any taxes at all. Personally I think this is unfair. They still have all the benefits of other citizens in our town; fire rescue still comes to their home if it's burning. Maybe the city should consider a flat /minimum tax for these individuals as a way to make up some of the difference. Thank you for your consideration Ms. Nubin. I appreciate your time and your service to our community. Sincerely, Debbie Castagna Richard Reade, City Manager 100 NW 1" Ave Delray Beach, Fl. 33444 RE: No New Taxes I Vince Zabik, protest against any new taxes or non ad- valorem assessments. My values have gone down and the millage rate has gone up with my taxes. Here is a list of properties I own, 505 NE 3rd Street Delray Beach 1105 Lake Drive Delray Beach 11091-ake Drive Delray Beach 140 NE 2nd Ave Delray Beach 149 NE 2nd Ave Delray Beach Total Tax Paid $12,313.55 Tax Paid $12,069.24 Tax Paid $9,709.90 Tax Paid $23,607.71 Tax Paid $14,361.83 $72,062.23 I think I have paid more than my fair share of taxes and this is just properties I own in Delray Beach. In my business I have had to cut my budget and I suggest you do the same. I will attending the meeting on the 17 l o ll bttdi Vince Zabik John W. Antlers 3897 Sherwood Blvd. Delray Beach, FL 33445 -5652 Phone: 561- 637 -6893 Cell: 561 -504 -3394 Email: jwandersl a(�� IOL.com City Of Delray Beach City Commission 100 NW 1 st Avenue Delray Beach, FL 33444 City Commission, =-9 CITY COMMISSION ,1-Ty CLERK I am adamantly opposed to the proposed Fire Assessment Fee. I have already paid over $8000.00 in property taxes to the city and now you want more from me and the other citizens of Delray Beach. This is not acceptable; especially in these hard economic times. It is your job to manage the city on the budget provided by the tax revenues. If you need more money for the Fire Dept. you have to cut the budget somewhere else. Several options spring to mind immediately. Cut the free downtown shuttle bus service which only benefits downtown business owners. Do as private sector businesses are forced to do in economic down times and cut employee benefits. As I understand it our city employees have a benefits package that far surpasses what the average citizen enjoys. I'm sure that, if you try hard enough, you can find appropriate budget cuts and avoid putting a further financial burden on the good citizens of Delray Beach. Tha;4r4 John W. Anders Hotmail - joann_l@hotmail.com Page 1 of 1 Irk ' My name is Joann LaRocca. January 21st is my 68th birthday. f� _ birthday I started writing Bank of America's CEO. I have spent three years trying to get justice and my inheritance (one half of my mother's apt in�� M Delray Beach) back. When my mother died, I bought my brother out. Thin. apartment's value has decreased by 75%. My good faith Freddie Mack &3414;5,` backed mortgage was based on a fair market value of $191,000. The fair , (- .7 YV' / market value is now $44,500. It is known that Bank of America stated that it would not reduce mortgage principals' to market value as under F.D.R. because of people like me who have some assets and can pay. I am one of the little people. I spoke to a congressman's office. They said to try the bank again. I went to the bank, following my husband telling me that when he went to deposit money in our account, he was told that we should refinance our ' mortgage. When I went, they said we don't qualify! We can pay! Thank F you! The lady at the bank has an under water mortgage, too. She has the same problem we have. Working people who have worked all their lives I and the really poor, have suffered the most. "Do as to others as you "1 would have done to you" does not seem to apply. A Bank of America owned home in our neighborhood currently has a fair market value of more than $300,000. The Bank got it for $44,500. That owner paid the mortgage for 14 years, I believe. According to the Palm Beach appraiser's office, he was the owner for all those years. That is sickening to me. I believe principals less than $200,000.00 should be reduced to be consistent with existing market value now. Principals between $200,000- $427,000 should be reduced at least 50 %. The figure $427,000 is what I understand was the benchmark under Freddie and Fanny. By the way, I would have paid higher taxes to Delray than paid the bank. When this started, I believe most of us poorer folk would have gladly paid their fair share of taxes so our beautiful town would not lose so much. Thank you. Sincerely, Y. &&- &- ho,9.1).-//coloe�w.co]104.mail-live.com/mail/InboxLight.aspx9, n=546882948 1/17/2012 January 6, 2012 Mr. Richard Reade, City Manager 100 NW P" Avenue Delray Beach, FL 33444 -2612 In re: Non -ad- valorem assessment for Delray Beach Dear Mr. Reader I have received your letter infoiniing me that I may be subjected to a non -ad- valorem assessment authorized by 170.201, Florida Statutes, for fiscal year 2011 /2012. Further, you state that, if the non ad- valorem assessment imposed for fiscal 2011 /2012, and thereafter, with the use of the ta, bill collection method authorized by section 197.3632, Florida Statutes, is not paid, a tax certificate will be issued against. the property which may result in a Ioss. of title. (Underline added). I am extremely concerned that this new method of arbitrary taxation will continue and become open -ended to the degree that I will be forced from my home due to rising tax costs. You explain in your letter that the "fire rescue services" are the beneficiaries of this windfall. What about the firemen, the policemen, the water department, et. al., and maybe all the city employees - you included? Will I be taxed additionally for their services in future assessments? I vehemently object to the assessment of the non -ad- valorem tax and will attend the January 17, 2012; meeting at 100 NW I" Avenue, Delray Beach, FL at 7 :00 p.m. in the City Commission Chambers to express my opposition to this arbitrary new tax. j� a I l r e o January 6, 2012 Mr. Richard Reade, City Manager 100 NW 1st ,Avenue Delray Beach, FL 33444 -2612 In re: Non -ad- valorem assessment for Delray Beach Dear Mr. Reade: I have received your letter informing me that I may be subjected to a non -ad- valorem assessment authorized by 170.201, Florida Statutes, for fiscal year 2011/2012. Further, you state that, if the non ad- valorem assessment imposed for fiscal 2011/2012, and thereafter, with the use of the tax bill collection method authorized by section 197.3632, Florida Statutes, is not paid, a tax certificate will be issued against the property which may result in a loss of title. (Underline added). I am extremely concerned that this new method of arbitrary taxation will continue and become open -ended to the degree that I will be forced from my home due to rising tax costs. You explain in your letter that the "fire rescue services" are the beneficiaries of this windfall. What about the firemen, the policemen, the water department, et. al., and maybe all the city employees - you included? Will I be taxed additionally for their services in future assessments? I vehemently object to the assessment of the non -ad- valorem tax and will attend the January 17, 2012, meeting at 100 NW 1st Avenue, Delray Beach, FL at 7:00 p.m. in the City Commission Chambers to express my opposition to this arbitrary new tax. Respectfully, January 6, 2012 Mr. Richard Reade, City Manager 100 NW 1" Avenue Delray Beach, FL 33444 -2612 In re: Non -ad- valorem assessment for Delray Beach Dear Mr. Reade: I have received your letter informing me that I may be subjected to a non -ad- valorem assessment authorized by 170.201, Florida Statutes, for fiscal year 2011/2012. Further, you state that, if the non ad- valorem assessment imposed for fiscal 2011/2012, and thereafter, with the use of the tax bill collection method authorized by section 197.3632, Florida Statutes, is not paid, a tax certificate will be issued against the property which may result in a loss of title. (Underline added). I am extremely concerned that this new method. of arbitrary taxation will continue and become open -ended to the degree that I will be forced from my home due to rising tax costs. You explain in your letter that the "fire rescue services" are the beneficiaries of this windfall_ What about the firemen, the policemen, the water department, et. al., and maybe all the city employees - you included? Will I be taxed additionally for their services in future assessments? I vehemently object to the assessment of the non -ad- valorem tax and will attend the January 17, 2012, meeting at 100 NW I" Avenue, Delray Beach, FL at 7:00 p.m. in the City Commission Chambers to express my opposition to this arbitrary new tax. Respectfully, �2 January 6, 2012 Mr. Richard Reade, City Manager 100 NW I" Avenue Delray Beach, FL 33444 -2612 In re: Non -ad- valorem assessment for Delray Beach Dear Mr. Reade: I have received your letter informing me that I may be subjected to a non -ad- valorem assessment authorized by 170.201., Florida Statutes, for fiscal year 2011/2012. Further, you state that, if the non ad- valorem assessment imposed. for fiscal 2011 /2012, and thereafter, with the use of the tax bill collection method authorized by section 197.3632, Florida Statutes, is not paid, a tax certificate will be issued against the property which may result in a loss of title. (Underline added). I am extremely concerned that this new method of arbitrary taxation will continue and become open -ended to the degree that I will be forced from my home due to rising tax costs. You explain in your letter that the "fire rescue services" are the beneficiaries of this windfall. What about the firemen, the policemen, the water department, et. al., and. maybe all the city employees - you included? Will I be taxed additionally for their services in fixture assessments? I vehemently object to the assessment of the non -ad- valorem tax and will attend the January 17, 2012, meeting at 100 NW I" Avenue, Delray Beach, FL at 7:00 p.m. in the City Commission Chambers to express my opposition to this arbitrary new tax. Respectfully, Wynn, Kimberly From: Sent: To: Subject: Thank you. Have a great day! Reade, Richard Tuesday, January 17, 2012 4:04 PM Agenda Coordinator FW: FW: Richard J. Reade Sustainability Officer /Public Information Officer City of Delray Beach, Florida Tel: 561.243.7009 Fax: 561.243.7199 E -Mail: reade @mydelraybeach.com Web: www.mydelraybeach.com Follow CityDelrayBeach on Twitter AL Please consider the environment before printing this email. E.P .WaterSense �NI http: / /www.epa.gov /watersense/ From: Andrew Burnham [ma i Ito: aburnham (&burtonandassociates.coml Sent: Tuesday, January 17, 2012 3:31 PM To: Reade, Richard Cc: mburtonCa�burtonandassociates .com; Harden, David; Smith, Douglas; Barcinski, Robert; Agenda Coordinator Subject: Re: FW: Rich, As indicated previously, the fire assessment methodology relies upon the Department of Revenue Property Use Codes or Designations for each property as contained within the records of the Palm Beach County Property Appraiser for determining the amount of the assessment to each property. The particular properties you reference are designated as Commercial Condos (DOR Use Code 4969), not as Public Schools (DOR Code 8300). There are likely other similar properties that have certain ad valorem exemptions due to their non -profit status (or due to their reliance upon public funding), but receive non -ad valorem assessments based upon the findings of benefit received by these properties from the services received and the policy decisions of the City. Additional Information for Item 10.A. Sincerely, Andy- On Tue, Jan 17, 2012 at 3:08 PM, Reade, Richard <reade @m d�ybeach.com> wrote: Andy, Please see the E -mail below regarding the Delray Youth Vocational Charter School (aka — Delray Beach Youth Enrichment Development Center, Inc.). Apparently, this Charter School receives public funding and they do not pay any property taxes to the City. However, they do pay the City's stormwater non ad- valorem assessment, as well as the County's Solid Waste Authority and the Lake Worth Drainage District). The question is: would they fall under the public school classification and be exempt from the proposed Fire Assessment Fee? Thank you. Have a great day! Richard J. Reade Sustainability Officer/Public Information Officer City of Delray Beach, Florida Tel: 561.243.7009 Fax: 561.243.7199 E -Mail: reade a,mydelraybeach.com Web: www.mydelraybeach.com Follow CityDelrayBeach on Twitter 2 Additional Information for Item 1 0.A. 46 Please consider the environment before printing this email. hgp://www.epa.gov/watersense/ From: Knabb, Benjamin Sent: Thursday, January 12, 2012 3:04 PM To: Reade, Richard Cc: Nastasi, Debra Subject: FW: Thanks Richard. From: karen goranson jmailto :karengoranson(a)dyycs.com] Sent: Thursday, January 12, 2012 2:56 PM To: ciouiou @hotmail.com; Knabb, Benjamin; alankirschenbaumC cbseabreezewealthmanagement .com; rqaqoo. adt.com Cc: Marjorie Waldo Subject: Dear all, I have attached a Notice of Public Hearing from the City of Delray Beach regarding a change in assessments for our two units in the Congress Commerce Center. FYI .......so you know our costs are going up.....and if you are interested in attending. Karen Additional Information for Item 10.A. Karen M. Goranson Office Manager Delray Youth Vocational Charter School 601 N. Congress Ave. #110 belray Beach, FL. 33445 561 - 266 -2206 561 -266 -2208 FAX karengoranson@dyvcs.com Andrew Burnham Senior Vice President Burton & Associates 200 Business Park Circle, Ste. 101 St. Augustine, FL 32095 Phone: (904) 247 -0787 Fax: (904) 241 -7708 Cell: (904) 631 -5109 Additional Information for Item 1 0.A. Dunton Enterprises, LLC. 955 NW 17"' Avenue Bldg. N Delray Beach, FL 33445 561- 279 -2200 DATE: January 12, 2012 TO: City of Delray Beach City Commission FROM: Lynne Ventry Dunton, Managing Member RE: Non Ad- Valorem Assessments , ,.• [ j:J ��Clf JAN l 3 2012 I CITE' COl�Mii u r if�1 ,> 2v Cl rry L > Please refer to the enclosed correspondence regarding Parcel No. 12434607420000140 (Ste. N) and Parcel No. 12434607420000150 (Ste. O). The assessment of $118 each for Ste. N and Ste. O is an error. The two suites constitute one building, according to the Declaration of Unity of Title recorded on August 10, 2004. A copy of the Declaration of Unity of Title required by the City, is enclosed for your review. Please note numbered paragraph 1, which states that the two condominium buildings "shall hereinafter be regarded ... as an indivisible building." Accordingly, any assessment should be for one building, not two. The combined suites are between 2,001 and 3,000 square feet. The assessment should be $178, not $236 ($118 plus $118). Please consider this a written objection, which is timely filed within 30 days of the January 6, 2012 notification. We do not object to the assessments per se, but to the application to this property. We would appreciate a written response as to whether this matter can be resolved without our attendance at the public hearing on January 17, 2012. DUN . N ENTE�P1 ISES LC By: "" Yt_ - .0 LynhleVAtry Dunton, anaging Member This Instrument Prepared by and Record and Return to: James A. Ballerano, Jr., Esq. Chapin, Ballerano & Cheslack 1201 George Bush Boulevard Delray Beach, FL 33483 0 CFN 200404G2885 OR RK 17377 PG 1:219 RECORDED 08/10/2004 13:59302 Palo Beach County, Florida Dorothy H Milken, Clerk of Court V ! � ?' DIWLARATION OF UNITY OF TITLE KNOW ALL* BY THESE PRESENTS, that pursuant to the ordinances of the City of Delray Beach pertaining,(' the issuance of building permits and regulating building construction activities, the undersigned,,ot ing the fee owner of the following described real property situated in the City of Delray Beach ; o}i of Palm Beach, and State of Florida, to -wit: Condo Units # 1V & ' O of GRAND BAHAMA PROFESSIONAL PARK COND0�14, a e.'adl� Qum, according to the Declaration of Condominium recorded on January 14, 2004, in Official Records Book 16435, Page 1259, of the Public Records of Palm )� iCounty, Florida does hereby make the following declara r of condition, limitation and restriction on said lands, hereinafter to be known and referred td as: � )ECLARATION OF UNITY OF TITLE, as to the following particulars: f., 1. That the aforesaid Condominium Ud(FCr r�tions thereof, shall hereinafter be regarded and are hereby declared to be unified undertn t is an indivisible building. 2. That the said property shall henceforth be iisii f, as one plot or parcel of land, and that no portion thereof shall be sold, assigned, tr sfrred, conveyed or devised separately except in its entirety as one plot or parcel of land. ' r a The undersigned further agrees that this deelar4tioty,)9'1, 7nity of Title shall constitute a covenant to run with the land, as provided by law, and sha'Vbe binding upon the undersigned, their heirs, successors and assigns, and all parties claiming under 1116oftd.qrninium ��ttil such time as the same may be released in writing by the Grand Bahama Professional Par Association Inc. and under the order of the Chief Building Official of the City of Delra�Ho h. If the release is not given by the Chief Building Official, an appeal from such determinatrbri:Ml' be taken to the Board of Adjustment. The undersigned also agrees that this instrument shall iipily ofrecord in the Office of the Clerk of the Circuit Court of Palm Beach County, Florida. �- Book17377/Page1219 Page 1 of 2 Signed, sealed, witnessed and acknowledged this day of July, 2004 at Delray Beach, Florida. DUNTON ENTERPRISES L.L.C. � ) COUNTY OF PAW CH ) THE FOREGOIN '-INSTRUMENT was acknowledged before me this .30 day of �^ , 2044 by .� K. Ventry, as Manager of DUNTON ENTERPRISES L.L.C., a Florid limited liability pgpaAy, on behalf of said company. She is personally known to me, or produced a (( :driver's license or passport identification, and who did take an oath..' NOT MY COMMISSION EXPIRES: FACiients \Wonderlend\RE \Gtud B1hamu\1)mton \Unity ofTittompd Aforesaid I/ /k h,Yt due of Notary Public )vm A kkoarA h. MY�COAIMIMN# � i' fANNM saw. u Book 17377 /Page1220 Page 2 of 2 January 6, 2012 Mr. Richard Reade, City Manager JAN j '� tt1 �l 100 NW i sc Avenue Delray Beach, FL 33444 -2612 CITY MANAGER In re: Non -ad- valorem assessment for Delray Beach Dear Mr. Reade: I have received your letter informing me that I may be subjected to a non -ad- valorem assessment authorized by 170.201, Florida Statutes, for fiscal year 2011/2012. Further, you state that, if the non ad- valorem assessment imposed for fiscal 2011/2012, and thereafter, with the use of the tax bill collection method authorized by section 197.3632, Florida Statutes is not paid, a tax certificate will be issued against the property which may result in a loss_ o_ f title. (Underline added). I am extremely concerned that this new method of arbitrary taxation will continue and become open -ended to the degree that I will be forced from my home due to rising tax costs. You explain in your letter that the windfall. "fire rescue services" are the beneficiaries of this Vi"hat about the firemen, the policemen, the water department, et. al., and maybe all the city employees - you included? Will I be taxed additionally for their services in future assessments? I vehemently object to the assessment of the non -ad- valorem tax and will attend the January 17, 2012, meeting at 100 NW I" Avenue, Delray Beach, FL at 7:00 p.m. in the City Commission Chambers to express my opposition to this arbitrary new tax. Respectfully, F�