The West Manatee Fire Rescue District is one hearing and a vote away from setting its spending plan for fiscal 2023-24. In the meantime, the district cemented its plans to increase fire assessment rates for vacation rental properties to fund a new inspection program.
WMFR commissioners unanimously voted Aug. 15 to adopt new rates, including a 4% increase across the board and the assessment of vacation rentals as commercial, for the upcoming fiscal year.
Fiscal 2023-24 begins Oct. 1.
The changes weren’t made without some public opposition.
Fire marshal Rodney Kwiatkowski said the district had received public feedback from almost 100 people and “every one of those 99 inquiries has been reconciled to our customers’ satisfaction.”
However, Attorney Aaron Thomas of the Bradenton-based Najmy Thompson law firm spoke during public comment on behalf of “several vacation rental management companies” that he said owned around 500 rental properties on Anna Maria Island.
Thomas called for the commission to reject the changes. He said there was extensive case law arguing that assessing vacation rental properties under commercial rates was illegal.
“This matter is pretty cut and dry, and pretty clear in the law,” Thomas said. “Renting your property as a short-term rental does not transform it from a residential to a commercial use.”
“There is no basis for the commission to vote to approve this. It is in direct contradiction of the law,” he added.
The new rates will result in some significant changes for vacation rental property owners.
The district’s current rates include a $211.48 residential base rate and a $0.1247 additional charge for every square foot more than 1,000, as well as a $525.59 commercial base rate with a $0.2276 additional charge per square foot more than 1,000.
With the current rates, residential property owners pay $336.22 for a 2,000-square-foot home and $460.95 for a 3,000-square-foot home.
Commercial property owners pay $753.19 for a 2,000-square-foot building and $980.80 for a 3,000-square-foot building.
The district’s new rates for fiscal 2023-24 will include a $219.94 residential base rate and a $0.1297 additional charge for every square foot more than 1,000, and a $546.61 commercial base rate with a $0.2367 additional charge per square foot more than 1,000.
Under the new rates, residential property owners will pay $349.63 for a 2,000-square-foot home and $479.32 for a 3,000-square-foot home.
Commercial property owners will pay $783.32 for a 2,000-square-foot building and $1,020.02 for a 3,000-square-foot building.
Since vacation rental property owners currently pay residential assessment rates, the owner of a 2,000-square-foot rental unit will pay $447.10 more in fiscal 2023-24, when the same properties will be assessed under business rates.
WMFR’s legal counsel, attorney Maggie Mooney of the Lakewood Ranch-based Persson, Cohen, Mooney, Fernandez & Jackson law firm, proposed additional language she said would address Thomas’ concerns.
Thomas said the language helped clarify some issues but it didn’t change the underlying problem of assessing short-term rentals as commercial properties.
Kwiatkowski said a portion of the additional funds raised with the new rates would be used to fund the district’s plans for a short-term rental inspection program.
He emphasized the need for the program since vacation rental properties have higher risks for drownings and structure fires.
Mooney said such properties had heightened standards for safety than residential structures due to their rental operations.
Commissioner Larry Jennis said he supported the changes because state law calls for fire districts to inspect short-term rental properties, which required the district to expend extra cost and effort.
Commissioner David Bishop moved to adopt the proposed assessment rates with Mooney’s amended language. The motion was seconded and approved.
Proposed budget
Fire commissioners also held the first public hearing for a proposed $11,407,453.14 budget for fiscal 2023-24.
The biggest difference in the proposed budget over this year is due to the new assessment rates, which will raise the district $10,003,191.14, more than $1 million than it projects to finish this year with.
The funds will pay for the district’s vacation rental inspection program, led by two new inspectors and staff members, as well as six new firefighters.
The new positions are projected to lead to a $1,758,270.50 increase in the cost of personnel services over this year, due to an almost $1 million increase in salaries, as well as increases in overtime costs and health care expenses.
The only other notable increase is a projected $724,275 increase in capital outlay costs over this year, from $147,500 this year to $871,775 in fiscal 2023-24.
That increase is mainly due to the projected $650,000 cost to purchase a new fire engine for the district, as well as a $60,000 Ford F-150 for the short-term rental inspector.
Overall, the district projects total revenues and expenditures to increase $2,685,465.50 over this year, from $8,721,987.64 this year to $11,407,453.14 in fiscal 2023-24.
There was no public comment on the proposed budget.
The WMFR commission will meet next at 6 p.m. Tuesday, Sept. 12, at the district’s administration building, 701 63rd St. W., Bradenton.
Directions to attend via Zoom can be found at wmfr.org.