FMB Fire Commissioners set TRIM rate
The Fort Myers Beach Board of Fire Commission set a Truth in Millage Rate at 2.90 mils for tax year 2010/11 at its regular monthly meeting Tuesday, July 20, at Station #31 meeting room. The result was placed on form DR-420 and must be filed by August 4, with the offices of the property appraiser and tax collector.
The TRIM rate was approved by a 3-2 count after Fire Commissioner John Scanlon made a motion for the given rate. Two prior motions for lower rates -including one at 2.75 mils which received only one vote and another at 2.8 mils which received two votes- did not pass the required three positive votes by the five commissioners for a majority ruling.
The fire commissioners then unanimously set a tentative budget hearing for Tuesday, Sept. 7, at 5:05 p.m., to be followed up on Monday, Sept. 20, before agreeing to have a budget workshop at 10 a.m. on Tuesday, Aug. 31, to discuss financial options publicly for the final millage rate.
Before the rate was set, FMB Board of Fire Commission Attorney Richard Pringle explained the action required by the fire commissioners. The TRIM rate can be lowered but cannot be set higher.
“The purpose of the discussion tonight is to set the Truth in Millage Rate that is required by law,” he said. “At the first budget hearing, it is typically anticipated that you will have a recommendation by Chief (Mike Becker) and staff for a lower millage rate to be considered at that time. The rate you set tonight will be the rate that is published for TRIM purposes.”
The property appraiser will mail TRIM notices to all property owners no later than August 24.
Nearly 20 minutes of discussion on the new business agenda item followed as to which TRIM rate should be used. Chairperson Carol Morris made the first unsuccessful motion for 2.75 mils.
“I don’t want to set it at 3.0, because it gives our customers the wrong message,” said Morris. “Let’s give ourselves just a little bit of flexibility, and hope we can bring it down. To me, we don’t want to make it so high that it looks like we’re not willing to make any changes. My logic is that we are under budget right now. Why anger people?”
Chief Becker gave his reasons why setting the TRIM rate at 2.75 mils would be troubling. The Beach Fire Administration recommended a TRIM rate of 3.0 mils.
“At 2.75 mils, the only tool that management has to manage any shortfalls is layoffs, and that would be pretty significant at this point,” he said. “We have ongoing negotiations so we can’t really make adjustments there. Our operating costs have increased. Hopefully, the union and management will get a grip on costs and lower it through negotiations versus trying to force costs cuts. By tying our hands this early in the process, I don’t think is a responsible thing to do at this point.”
Commissioner Joe Schmid pointed out certain budgetary numbers to back his unsuccessful motion at 2.8 mils.
“Right now, we are running $1 million over budget,” he said. “Our revenues are exceeding our expectations by $1.6 million.”
During public input, Beach resident Pat Smith was concerned about setting a rate too high with a weak economy. The Lee County Property Appraiser released the certified property values on June 30. Final property values fell 10.69 percent from last year which equates to a rolled back millage rate of 2.5823 for the next budget year.
“People are hurting, and they are moving off the Beach in droves,” she said. “A 10.69 percent decrease in home values here is something people and there portfolios are feeling. We can’t just pretend like this is a stretchable sort of thing and that we can keep going to the highest millage rate year after year.”
Last year, for the tax period 2009/10, the Beach Fire Commissioners set the TRIM rate at 3.0 mils and the final millage rate at 2.58 mils.
TRIM- Truth in Millage
Known as an estimated tax rate, the TRIM notice identifies the taxable value of property and provides information on proposed millage rates and taxes as estimated by each taxing authority.
The TRIM notice gives the taxing authority the ability to make needed decisions by either cuts or by working on internal numbers. Flexibility is crucial for the Beach Fire Control District to be able to provide the services that one has come to rely on a yearly basis.