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Costly EMS tax might hit Fort Lauderdale

20 Dec 2024 11:24 AM | Matt Zavadsky (Administrator)

The EMSIntel.org log is beginning to show a growing number of news reports like this.

Financial issues in many communities across the country requiring tough decisions regarding EMS delivery.

Thankfully, some communities are using evidence-based research published in peer-review journals and local data to reimagine EMS delivery based on science.

Tip of the hat to Bill Schneiderman for sharing this news report.

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Costly EMS tax might hit Fort Lauderdale
By Susannah Bryan South Florida Sun Sentinel
December 19, 2024
 
https://www.sun-sentinel.com/2024/12/18/costly-ems-tax-might-be-coming-down-the-pike-in-fort-lauderdale/
 
Fort Lauderdale might start charging a new tax that would bring in tens of millions to help cover the cost of ocean rescue and emergency medical services.
 
The tax would come to $456.78 for a home with a taxable value of $590,000, according to current estimates. The higher the value of the home or commercial property, the higher the tax.
 
Commissioners got details about the possible new tax from an outside consultant on Tuesday.
 
If Fort Lauderdale moves forward with the plan, the tax would show up on property tax bills as soon as 2026.
 
The tax would apply not only to single-family homes, but to all properties currently taxed in Fort Lauderdale, said Peter Napoli, a senior manager with Stantec Consulting.
 
Napoli had a dire warning for the commission, saying the city can expect a growing shortfall over the coming years if drastic measures are not taken.
 
The city will face a deficit of $4.7 million in 2026; a deficit of $35.4 million in 2027; $39.4 million in 2028; $52.9 million in 2029; and $45.3 million in 2030, Napoli said. Emergency reserves would be depleted by 2029, he added.
 
Commissioner Ben Sorensen said he was alarmed by the news.
 
“We’re going to be in trouble if we don’t increase revenue or significantly reduce spending,” he said.
 
Mayor Dean Trantalis said an Emergency Medical Services tax would help close the gap, but he sees no reason to move forward with a new tax at this time.
 
“I’ve seen these (projections) for years and they’re always jaw dropping,” he said. “And at the end of the day, we seem to find a way to close the gap.”
 
Fort Lauderdale Fire Rescue has a $127.4 million budget.
 
Here’s how the budget breaks down:

  • The cost of fire/first responders is $68.5 million.
  • Costs related to Emergency Medical Services come to $52.9 million.
  • And Ocean Rescue costs an additional $5.9 million.

 
Fort Lauderdale homeowners already pay a yearly fire fee of $328.
 
Unlike the fire fee, the EMS tax would be tied to the value of their property.

Collecting an EMS tax rate of $68 per $100,000 in assessed value would bring in nearly $75 million over the next 10 years, Napoli said. Increasing the EMS tax to $86 per $100,000 in assessed value by 2033 would bring in close to $95 million.
 
“You can adopt the EMS tax rate at full cost recovery in the first year,” Napoli said. “Or you can phase it in, ramp it up over a four-year period or five-year period.”
 
Here’s the cost breakdown if the EMS tax were phased in:

  • 25% cost recovery in Year 1: $101.64 for a home with a taxable value of $590,000
  • 50% cost recovery in Year 2: $208.57
  • 75% cost recovery in Year 3: $322.67
  • 100% cost recovery in Year 4: $454.83.
 
After hearing the presentation, Trantalis said he and the commission needed time to vet the idea with the community.
 
“According to your chart, this is not going to creep up on us until 2027,” he told the consultant. “We don’t really have to do anything now. I see a projected deficit of only $4.7 million in 2026. It’s something we can consider down the road. I think it might be important to reach out to the community and see what the appetite is for this.”
 
Acting City Manager Susan Grant suggested the commission move forward with a new ordinance to get the framework in place, even if they decide to wait on collecting the new tax.
 
“That way we’d be prepared based on what budget numbers look like,” Grant said. “Set up the framework and we wouldn’t have to decide until June or July.”
 
Vice Mayor Steve Glassman and Commission John Herbst both agreed.
 
“I think to set up the structure is not a bad idea,” Glassman said.
 
The mayor’s response: “I don’t want to scare anybody either.”
 
Herbst chimed in.
 
“I concur that establishing a structure right now doesn’t necessarily obligate us to fund anything,” he said. “And it puts the infrastructure in place so if we do decide we want to move forward we’re not hamstrung by timing considerations.”
 
Herbst suggested the commission continue the discussion at their annual goal-setting session in January.
 
“I do think we should come to some consensus in January before we get too much further down the road,” Herbst said.
 
Grant said she’d direct staff to begin working on an ordinance so the commission can be poised to move forward with the new tax if that’s the route they decide to take.


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