City staff presented a proposal to shift the city\u2019s fire assessment fee during the Ocoee City Commission meeting Tuesday, May 19, to a \u201cdemand availability\u201d methodology, which officials said would lessen the burden on single-family homeowners while increasing contributions from commercial and multifamily properties.<\/p>\n
Assistant City Manager Mike Rumer said the city completed a projection of the five-year budget and anticipates an increase from $12.5 to $14 million to $28 million in 2031. The city is looking to increase its fire service fee revenue, and to do so, it will raise the fire assessment rate to 40% and set a flat residential fire fee of $341.24 annually for single-family homes, which many homeowners already pay similar amounts under the current tiered system based on square footage and property classifications.<\/p>\n
He said fire assessment fees currently are 36% and generate $4.4 million, and the proposed 4% increase will generate an additional $3.5 million.<\/p>\n
\u201cIt\u2019s really important for everyone to know that whatever the rate is, it\u2019s not going to cover 100%; it\u2019s not even going to get close to covering 100% of our projected fire budget,\u201d City Manager Craig Shadrix said.\u00a0<\/p>\n
Shadrix said equipment and personnel costs are rising.\u00a0<\/p>\n
\u201cWe have great potential for reduction in revenue this year, and we\u2019re going to have to come up with the money somewhere,\u201d Shadrix said. \u201cWe\u2019re making cuts. We\u2019re going to be proposing additional cuts, but at the end of the day, they\u2019re not going to be enough. We either make it up in an assessment, which is to every property owner, or we increase the millage rate, and we\u2019re not recommending a millage rate increase tonight.\u201d\u00a0<\/p>\n
City staff have worked to bring down the reliance on residents, especially single-family residents, and will include apartment complexes under non-residential or commercial uses in the new methodology. In the new methodology, everyone will pay a little more, but it is something that will sustain the city for a few years, Shadrix said.\u00a0<\/p>\n
\u201cWe\u2019re chasing a moving number that\u2019s getting bigger year in, year out,\u201d he said. \u201cThe projections (Rumer) showed was real. It\u2019s based on real costs, but the fire department number is going to be going up roughly $2 million a year. There\u2019s nothing we can do about that.\u201d<\/p>\n
The proposal comes as municipalities across Florida prepare for possible changes to state property tax laws being discussed by lawmakers in Tallahassee. Ocoee could face significant revenue losses depending on what the state legislators approve during a special session later this year.\u00a0<\/p>\n
\u201cWe think this buys us some time, but we don\u2019t know what is going to really happen in August, so we may have to take additional actions, but we\u2019re doing the best we can,\u201d Shadrix said.\u00a0<\/p>\n
District 2 Commissioner Rosemary Wilson said residents should prepare for the financial realities facing local governments. When staff members have traveled to Tallahassee, the legislators they spoke to weren\u2019t interested in hearing the local governments\u2019 thoughts, so when the vote comes down in August, they are unsure what will happen.\u00a0<\/p>\n
\u201cIt\u2019s a scary time for us as commissioners and for the city to (wait on) what we project is going to happen, so we\u2019re going to have to pay for the services, we know that and we have no choice,\u201d she said.\u00a0<\/p>\n
Commissioners Richard Firstner and George Oliver III also stressed the importance of educating residents of the impact potential tax reforms could have on the city services.\u00a0<\/p>\n
The commission unanimously approved directing staff to return Tuesday, June 16, with an initial assessment resolution using the new methodology. If approved after additional hearings, notices will be mailed to all property owners before the final adoption.\u00a0<\/p>\n
OTHER FUNDING<\/p>\n
The city also outlined plans to create a dedicated EMS enterprise fund designed to make ambulance transport operations financially self-sustaining while improving fire suppression staffing.\u00a0<\/p>\n
Under the proposal, Ocoee would establish a separate EMS division staffed by single-certification paramedics rather than firefighter-paramedics assigned to ambulance duty. Fire officials said the change would allow the city to fully staff four fire engines, a tower truck and two advanced life support ambulances simultaneously.\u00a0<\/p>\n
Deputy Fire Chief CJ Van Camp said the EMS enterprise model would reduce reliance on tax-supported funding sources while improving emergency response operations.\u00a0<\/p>\n
\u201cThis proposal is not about reducing services,\u201d he said. \u201cIt is about modernizing how EMS services are funded.\u201d\u00a0<\/p>\n
The proposed EMS division would be funded primarily through ambulance transport revenue and federal reimbursements. Fire officials projected the system could generate approximately $3.7 million annually with estimated operational costs of about $2.6 million.\u00a0<\/p>\n
Commissioners unanimously approved directing staff to draft an ordinance establishing the EMS enterprise fund and EMS division for future consideration.\u00a0<\/p>\n
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