KELLY FARRELL / Staff

The City of Marco Island awarded diplomas to the 12 newest young graduates of the Police and Fire Academy. The City's Parks and Recreation, Police and Fire-Rescue Departments provided an introduction to law enforcement, fire and emergency medical services. 2008 graduates were Peter Servente, Liam Hollowsky, Tasha Baer, Taylor Hamilton, Gabrillia Sampson, Courntey Sampson, Savannah Garner, Mariel Sanchez, Robert Alywin, Makena Henell, Zachary Halaschak and Kevin Hennings.

KELLY FARRELL / Staff

Fire-Rescue and Police Department Officers shake hands with City Councilors Monday as they are congratulated for bringing victims back to life, earning the Life Saving Eagle Award. The emergency services personnel received a standing ovation for their service to the community.

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Attempts by the State Legislature to decrease property tax burdens may be thwarted as local governments, including Marco Island, find ways around their old funding mechanisms. City Council approved the first reading of the fire assessment ordinance Monday.

Tax reform, declined property values and a decline in sales tax collected have City of Marco Island officials looking for new ways of doing things, decreasing their dependence on real estate taxes through numerous types of money making fees and assessments, including the fire assessment.

The assessment was presented by city staff as a fairer way to collect for fire service than property taxes. However, if property taxes remain in place at the same rate, or possibly at any rate, residents questioned whether the assessment could really equalize anything.

“This assessment is the most drastic change in the city’s financing since the inception of the city. People seem unclear as to whether this is a new tax or a revenue neutral tax as (Fire Chief Mike) Murphy presented it. These things have a way of taking on a life of their own. This is a radical change in funding and the people have a right to know,” said resident Roger Hall.

Hall added that Council should wait until November and add the fire assessment to the election ballot.

The first reading of the fire assessment ordinance received the most public comment in Monday evening’s City Council meeting and many Islanders said they share Hall’s concerns.

Murphy said a main goal of the fire assessment was for a “funding mechanism of fairness” which he maintained property taxes are not because they tax on property value instead of services used. Ad valorem funding leaves a large disparity between what a homesteaded homeowner pays for fire service versus a non-homesteaded property owner, he added.

The assessment would charge property owners based on average fire use by property type depending on whether the property owned is a single family residence, multi-family residence, commercial property, vacant lot or government-owned property. This average usage was determined by a study by Government Services Group.

Councilor Frank Recker said that it was important for staff to be clear on the fire assessment so residents understand that there is no way for the City to lower ad valorem “dollar for dollar” or proportionate to the fire assessment.

Council approved the first reading of the ordinance 6-1 with Councilor Ted Forcht casting the only dissenting vote.

Recker said there is a chance council still may not use the fire assessment.

“We’re just building a jail. We’re not putting anybody in it yet,” he added.

The city has a cap on how much it can spend each year. The cap is equivalent to three percent more than budgeted expenses from the year prior plus a Cost of Living Adjustment, which is 3.2 percent this year according to the Social Security Administration.

Resident Russ Colombo said he wasn’t pleased with some of the implications of the fire assessment and its relation to the city’s spending cap.

“If it’s paid by assessment only it becomes reasonably defined as self supporting. Seems to me the City Charter exempts any self supporting entities from the cap,” Colombo said.

Recker clarified: “We’re still paying for it from the general fund. We just get the money from a different source. This will not be an enterprise fund.”

Recker said he did not object to putting language in the fire assessment ordinance that would make clear the intention to have fire service operate under the city’s spending cap and other councilors nodded in agreement.

“While this may be fairer, it really hurts the homesteaded guy ... Your full time residents are eventually going to say ‘uncle’ and leave,” said Ken Honecker of the Marco Island Taxpayers Association.

The second reading of the fire assessment ordinance is scheduled for July 24, after which council may decide what percentage of the fire budget will be funded through a fire assessment, if any.

“This doesn’t automatically lower you tax bill at all. We could fund it fully and get full ad valorem and just keep that extra $4 million,” Recker said.

While hundreds of taxing districts in the state have fire assessments, Marco Island’s fire department may become the first in Collier County to establish the new form of charging for services.

Independent taxing districts such as North Naples Fire and Rescue and several other fire districts in the county have expressed an interest in assessments and alternative revenue forms as legislative tax reform and declined property values limits their income. However these fire and rescue districts need to pass such an assessment through a popular vote of their constituents.

Other new funding mechanisms considered by the City of Marco Island include Payment In-Lieu-of Taxes (PILOT) which will include a new fee on customer’s utility bills and a stormwater utility fee which will charge property owners for their estimated contributions to stormwater runoff. City takeover of electricity is a longer term look at a new funding mechanism for the city which some officials in support of the idea hope will reduce or even eliminate property taxes.

Council did not make final decisions Monday as to how much each fee or assessment would be, but suggested staff continue the steps necessary to allow such fees and assessments to be considered further at a future budget meeting.