Fire Services Fee Increase on the Horizon

The message coming out of the city of Tallahassee first quarter budget workshop is that all Leon County residents should expect an 20-25% ($60-70 per year) increase in the fire service fee in the near future.

City staff informed commissioners that several significant developments have occurred that require a financial review of the Fire Fund. These factors include reduced annual revenue due to non-payment for services by Leon County Schools and the adoption of collective bargaining agreements with the International Association of Fire Fighters.

Based on these items, the rates established during the current five-year study period are not expected to be sufficient. As such, the City plans to conduct an early review of the Fire Service Assessments and Fees to ensure fire protection services remain fully funded.

Fire Service Assessment and Fees

As part of budget development for FY26, an early review of the Fire Service Assessment and Fees will be conducted to ensure fire protection services remain fully funded. The staff detailed the factors driving the expenses.

The City and Tallahassee Professional Firefighters IAFF Local 2339 (IAFF) agreed on new 3-year agreements for both bargaining units (supervisory, and rank and file). The new wages and personnel costs for these agreements exceed the previously budgeted amounts. The finalized costs will be included in the fee review.

Since the inception of the FSF Leon County Schools paid a fee for services based on the allocated costs for its facilities. The fee, unlike that paid by residents and businesses, is a voluntary fee for service. In FY21 Leon County Schools concluded that it was not legally obligated to pay the fee and ceased payment despite continued service provision and billing for these services from the City. The annual impact is $1 million per year. This loss of revenue will need to be calculated in the FY25 fee study.

The remaining factors are the construction of Fire Station 17 at Lake Bradford Road and expansion of Fire Station 15. Based on comparable facilities in the state, preliminary cost estimates for Station 17 were $25 million. As the design and engineering process nears completion and inflationary pressures continue to impact construction costs, the new estimate for Fire Station 17 is $34 million. Financing the remaining portion of the project will result in additional debt service of approximately $500,000.

Also, 12 new positions were added to meet anticipated staffing needs in FY25, and 24 additional positions are planned for FY26. These 36 positions are estimated to cost $3.3 million annually and are assumed at the current rates. An additional 24 member is estimated to cost $2.2 million annually and will be incorporated in the five-year fee study.

Based on the new and projected budget items City staff estimates that $30-35 million in additional revenue (approximately 20-25% increase) will be needed to fully fund operations for a new five-year period through FY30.

A rate increase will be effective October 1, 2025. For the average City residential customer, this will result in an increase of approximately $5-6 per month. This estimate is preliminary and the City has contracted with Accenture Infrastructure and Capital Projects Consulting, LLC, to conduct the formal review. Once the review is complete, recommendations will be presented at a future budget workshop.