INDIAN ROCKS BEACH - The news was bad, and the solution could pit the pocketbooks of beach and mainland home and business owners against each other in a proposed August referendum.
"We're going broke. Catastrophe is on the horizon," said Tom Haffner, board chairman of the Pinellas Suncoast Fire and Rescue District during a special meeting last week.
The board had expected to decide on a fire fee increase to appear on a referendum ballot Aug. 31. But sharp opposition from two beach city mayors delayed that decision until Tuesday (6:30 p.m, 304 First St., Indian Rocks Beach).
"We are on the hairy edge of our auditor reporting to the state that we are financially insolvent," said Haffner, adding that if that occurs, the district will be taken over by the county or split up among the Largo, Seminole or Madeira Beach fire services.
"That doesn't have to happen. We have a premium fire service. We have a terrific response time. We just have to have more income," he said.
The dilemma the board faces is how to raise more money in a way that is seen as fair by voters throughout the district (Indian Shores, Indian Rocks Beach, Belleair Beach, Belleair Shore and a portion of the mainland between Ulmerton Road, 94th Avenue N, 131st Street N and the Intracoastal Waterway).
Currently, homeowners pay a flat $190 fee for fire and rescue services (businesses pay different amounts). The fire fee, approved by voters less than a year ago, was the first increase in 12 years but has not generated enough revenue to keep the district afloat financially.
"Eight-hundred-square-foot Cracker shacks are paying exactly the same as million-dollar condos," said Fire Commissioner Bob McEwen, who urged a financing system based on property values.
The board appears to favor a new fee structure that would add a small property tax to the existing flat fee. As property values increase, the resulting increase in tax revenues would naturally offset rising costs, Haffner said.
"Ad valorem (property taxes) would be more beneficial to people on the mainland," said Fire Commissioner Dan Madura. He argued that a higher flat fee would cost proportionately more for owners of lower valued properties.
But that was not the view of the beach mayors who urged the fire board to keep a flat fee, even if they have to go back to voters every couple of years for an increase.
"Assessing millage will really kill the beach towns. There is not a house on the islands that sells for $100,000. It's five times that," said Belleair Shores Mayor John Robertson. "You're making a huge mistake. Don't rush it."
Belleair Beach Mayor Mike Kelly told the fire board they will "get crucified on the ballot" if voters are asked to pay property taxes for their fire service.
According to Fire Commissioner Bill Ripley, the district needs about $1.25-million a year in additional revenue to meet its projected 2005-2006 budget. This translates to a flat rate of about $300 per household, a property tax of about 3 mills, or a hybrid system that would combine a flat rate and property tax.
