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Discussion Regarding Potential Funding for Hernando County Fire and Emergency Services
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BRIEF OVERVIEW
In July 2023, Raftellis Financial Consultants, Inc., (Raftelis) a financial consulting firm, presented a study to the Board for Municipal Service Benefit Unit (MSBU) for fire assessment rates. Raftellis presented options for utilizing general obligation (GO) funds or MSBU funding only for capital improvements. This study cost was $77,453. During their study, it was found that the usage of services had not been updated in over ten (10) years and their distribution of usage percentages reflected updated information. The results of the study determined a 28% increase was needed for the FY 24 budget. An increase to cover current operating expenses was approved. The Board directed Hernando County Fire and Emergency Services to conduct a new study in 2024 with an alternative methodology.
In July 2024, Benesch Consulting firm, presented a new methodology to the Board utilizing 30% use of service plus 70% available for service. They also proposed separating the industrial category into a separate category and re-allocating vacant property into two classifications (10 acres and under and over 10 acres). The cost of this study was $52,204. This methodology was not approved. Funding was approved to cover current operating expenses based on the 2023 Raftellis study for FY 25.
In fiscal year 2026, a new fire station on Spring Lake Highway which will require the hiring of twenty-one (21) personnel to staff. As the County grows and the utilization of fire and EMS services increase, Hernando County Fire and Emergency Services is anticipating adding new fire stations which will include apparatus and personnel. Each additional fire station will increase the budget $3.5 million in operating expenses (not including the construction and apparatus costs).
Hernando County Fire and Emergency Services is asking for direction from the Board for funding for the next few years.
Option 1: Hire a consulting firm to conduct another MSBU study to present to the Board.
Option 2: Perform a study in-house to present funding options to the Board.
Either option could result in different methodologies based on the Board’s preference:
Methodology 1: Based on calls for service (over a 3-year period) Current Method. (2023 Raftellis Study)
Methodology 2: Based on availability for service only. This could be on a percentage basis or by square footage only (except vacant land).
Methodology 3: Based on a combination of calls for service (over 3 years) and availability for service. (2024 Benesch Study)
Methodology 4: Use a combination of MSBU and Municipal Service Taxing Unit (MSTU) funding.
Hernando County Fire and Emergency Services is requesting direction from the Board in order to present the results in May for the FY 26 budget and the following four years.
FINANCIAL IMPACT
No Financial Impact at this time.
LEGAL NOTE
The Board has authority to act on this matter pursuant to Chapter 125, Florida Statutes.
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RECOMMENDATION
It is recommended that the Board provide direction for funding options.