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Consideration of Three City/County Interlocal Agreements to Effectuate Planned Consolidation of Fire Rescue
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BRIEF OVERVIEW
On September 2, 2025, the Board voted to move forward with a merger of the City’s fire department with that of the County. This agenda item seeks the Board’s approval of the three interlocal agreements that are necessary to effectuate the anticipated merger.
1. Interlocal Agreement between the City of Brooksville and Hernando County Regarding the Consolidation of Fire Rescue Services
The Board approved a prior version of this Agreement, which provides for the merger, on September 2, 2025. Prior to its presentation to the City Council, the City’s outside pension counsel requested that a minor change be made to the final sentence of Article 2.3, Pension, which is on the document’s second page. The sentence currently reads: “The City shall take all actions necessary to terminate its existing Fire Pension Plan in accordance with Section 175.361, Florida Statutes.” The City’s pension counsel requests that the sentence be changed to read as follows: “The City shall take all actions necessary to close its existing Fire Pension Plan in accordance with Florida Statutes.” Attached hereto please find a redlined copy of page 2 and a clean copy of the revised document. The making of this change to the Interlocal Agreement will have no impact on Hernando County.
2. Interlocal Agreement Relating to Pension Matters Supplementing Article 2.3 of the Interlocal Agreement between the City of Brooksville and Hernando County Regarding the Consolidation of Fire Rescue Services
The City and the County drafted this Agreement to ensure that the City’s pension plan remains “municipal” in nature following the consolidation.
By law, the City’s firefighters will, at the time of their respective transfers to County employment, will have the option of either remaining in the City’s firefighters’ pension plan or enrolling in FRS unless the City terminates its plan. Assuming that some firefighters elect to remain in the City’s plan, the County will have to make the “employer’s” contributions thereto.
The City currently funds its firefighters’ pension fund with proceeds from its tax on property insurance premiums. See Fla. Stat. § 175.371 (authorizing levy); Brooksville City Code §§ 66-221 (establishing firefighters’ pension trust fund) and 78-51 (imposing excise tax to fund firefighters’ pension trust fund). For example, according to Florida’s Office of Economic and Demographic Research, the state distributed $115,679 of tax proceeds to the City for its firefighters’ pension trust fund, and $14,355 for the City’s Firefighters’ supplemental compensation fund, in FY 2023.
Since, pursuant to Fla. Stat. § 175.101, only municipalities can impose the insurance premium excise tax, the County needs the City’s firefighters’ pension plan to remain “municipal” in nature. Otherwise, the City’s fund would be left without an independent funding source, which could result in the County having to bail out the City’s plan.
3. Interlocal Agreement between City of Brooksville and Hernando County for Lease of Fire Station Facility
To facilitate the County’s provision of fire rescue services within the City, this Agreement provides for the County’s lease from the City of the Brooksville Fire Station, which is located at 85 Veterans Avenue, Brooksville, Florida 34601.
The Agreement provides that County will pay annual rent in the amount of $1.00 for FY 2025 (October 1, 2025-September 30, 2026). The annual rental payment will increase to $167,370.00 for FY 2026 (October 1, 2026-September 30, 2027). Commencing with Fiscal Year 2027, and for each fiscal year thereafter, the annual rent shall be adjusted for inflation, which will be pegged to the Consumer Price Index.
The County would be responsible for all utilities and will maintain the Fire Station in good order and repair. The City will be generally responsible for any for structural repairs and will maintain the generator, building, and roof.
FINANCIAL IMPACT
None.
LEGAL NOTE
The Board has the authority to approve this agenda item pursuant to the “Florida Governmental Conflict Resolution Act,” Fla. Stat. §§ 164.101-164.1061.
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RECOMMENDATION
It is recommended that the Board approve and authorize the Chairman’s signature on the attached interlocal agreements.