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HomeMy WebLinkAboutR-2025-097 Fire Preliminary AssessmentRESOLUTION NO. 2025-097 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, RELATING TO THE IMPOSITION OF FIRE RESCUE ASSESSMENTS AND THE PROVISION OF FIRE SERVICES, FACILITIES AND PROGRAMS WITHIN THE CITY OF DANIA BEACH, FLORIDA; PROVIDING AUTHORITY; PROVIDING FOR PROVISION AND FUNDING OF FIRE SERVICES; PROVIDING FOR IMPOSITION AND COLLECTION OF SUCH ASSESSMENTS; PROVIDING LEGISLATIVE DETERMINATIONS OF SPECIAL BENEFIT AND FAIR APPORTIONMENT; PROVIDING UPDATED ASSESSMENT CALCULATIONS; ESTABLISHING PRELIMINARY NOT-TO-EXCEED ASSESSMENT RATES FOR FIRE ASSESSMENTS TO PROVIDE FOR THE PROVISION OF FIRE SERVICES, FACILITIES AND PROGRAMS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2025; DIRECTING THE PREPARATION OF A PRELIMINARY ASSESSMENT ROLL; AUTHORIZING A PUBLIC HEARING AND DIRECTING THE PROVISION OF MAILED AND PUBLISHED NOTICE OF SUCH HEARING; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, in July of 1996, the City of Dania Beach ("City") implemented a Fire Rescue Assessment to provide a portion of the funding for the City's fire rescue services and facilities with the adoption of Ordinance No. 10-96, subsequently codified as Chapter 23, Article VIII of the City of Dania Beach Code of Ordinances (the "Fire Assessment Ordinance"), and imposed fire rescue assessments for Fiscal Year 1997-1998 with the adoption of Resolution No. 63-96 also referred to as Resolution No. 1996-063 (the 'Initial Assessment Resolution") and Resolution No. 72-96 also referred to as Resolution No. 1996- 72 (the "Final Assessment Resolution", and together with the Initial Assessment Resolution, the "Initial Resolutions"); and WHEREAS, the Fire Assessment Ordinance sets forth the process for annual administration of the Fire Rescue Assessments which includes adoption of (i) a Preliminary Rate Resolution describing the method of assessing fire rescue costs against Assessed Property located within the City, directing the preparation of an Assessment Roll, authorizing a public hearing and directing the provision of notice of such hearing, and (ii) an Annual Rate Resolution adopting the final assessment rates and directing billing and collection of the Fire Rescue Assessments for the forthcoming Fiscal Year; and 2 RESOLUTION #2025-097 WHEREAS, in each year subsequent to 1996, the City has adopted the annual resolutions required by the Fire Assessment Ordinance for annual imposition and collection of the Fire Rescue Assessments; and WHEREAS, to facilitate the understanding of the public and simplify the administration of the Fire Rescue Assessments, the City adopted Resolution No. 2017-084 and Resolution No. 2017-105 (collectively, the "2017 Resolutions") which superseded and supplanted all prior resolutions adopted pursuant to the Fire Assessment Ordinance without affecting the validity or effectiveness of any of the Fire Rescue Assessments adopted and imposed by such prior resolutions; and WHEREAS, in each year subsequent to 2017, the City has adopted Preliminary Rate Resolutions and Annual Rate Resolutions in accordance with the requirements of the Fire Assessment Ordinance (such resolutions, together with the 2017 Resolutions, are referred to herein as the "Prior Assessment Resolutions"); and WHEREAS, the City engaged the rate consulting firm Raftelis Financial Consultants, Inc. ("Raftelis") to prepare a study updating the data and methodology used by the City to calculate the Fire Rescue Assessment imposed against each property; and WHEREAS, a copy of the FY 2026 Fire Services Assessment Study prepared by Raftelis (the "2025 Methodology Study") is attached hereto as Exhibit A; and WHEREAS, the City Commission of the City of Dania Beach, Florida, deems it to be in the best interest of the citizens and residents of the City of Dania Beach to adopt this Preliminary Rate Resolution to begin the process of imposing Fire Rescue Assessments and approving and certifying the Assessment roll for the Fiscal Year commencing October 1, 2025 ("Fiscal Year 2025-26"). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. Authority. This Resolution is adopted pursuant to the provisions of the Fire Rescue Assessment Ordinance, the Prior Assessment Resolutions, Florida Statutes 166.021, 166.041 and 197.3632, and other applicable provisions of law. Section 2. Definitions, Purpose and Findings. Capitalized terms not otherwise defined herein shall have the meanings assigned in the Fire Assessment Ordinance and Prior Assessment Resolutions. This Resolution constitutes the Preliminary Rate Resolution for Fiscal Year 2025-26 which initiates the annual process for updating the Assessment Roll. This 3 RESOLUTION #2025-097 Resolution ratifies, confirms and supplements the Fire Assessment Ordinance and Prior Assessment Resolutions. The recital clauses set forth above are incorporated herein as the legislative finding of the City Commission. All recitals and legislative findings concerning the special benefit conveyed by fire rescue services and facilities and the fair and reasonable apportionment of the Fire Rescue Assessments set forth in the Fire Assessment Ordinance and Prior Assessment Resolutions are specifically ratified, confirmed and incorporated in this Resolution. Section 3. Provision and Funding of Fire Services. Upon the imposition of Fire Rescue Assessments for fire services, facilities, or programs against Assessed Property located within the City, the City shall provide fire services to such Assessed Property. A portion of the cost to provide such fire services, facilities, or programs shall be funded from proceeds of the Fire Rescue Assessments. The remaining costs required to provide fire services, facilities, or programs shall be funded by lawfully available City revenues other than Fire Rescue Assessment proceeds. No emergency medical services ("EMS") costs are included in the Fire Rescue Assessment, and EMS costs shall not be funded by Fire Rescue Assessment proceeds. It is ascertained, determined, and declared by this Resolution that each parcel of Assessed Property located within the City will be benefited by the City's provision of fire services, facilities, or programs in an amount not less than the Fire Rescue Assessment imposed against such parcel, computed in the manner as set forth in this Preliminary Rate Resolution. Section 4. Imposition and Computation of Fire Rescue Assessments. The 2026 Methodology Study describing the method of apportioning the Fire Rescue Assessments among Assessed Property, a copy of which is attached hereto as Exhibit A, is hereby approved, adopted and incorporated herein by reference. Fire Rescue Assessments for Fiscal Year 2025-26 shall be imposed against all Assessed Property based on the apportionment methodology for the Fire Rescue Assessment approved by the Prior Assessment Resolutions as updated in the 2026 Methodology Study using the Fire Class Codes and Fire Basis data maintained by the Broward County Property Appraiser for each Assessed Property. Section 5. Legislative Determinations of Special Benefit and Fair Apportionment. Adoption of this Resolution constitutes a legislative determination that all parcels assessed derive a special benefit from the provision of fire rescue services, facilities and programs, and that the Fire Assessed Costs are apportioned fairly and reasonably among Assessed Properties, consistent with the 2026 Methodology Study and the legislative declarations, 4 RESOLUTION #2025-097 determinations and findings as set forth in the Fire Assessment Ordinance and Prior Assessment Resolutions. Section 6. Determination of Fire Assessed Costs; Establishment of Proposed Not-to-Exceed Fire Rescue Assessment Rates. The Fire Assessed Cost to be assessed and apportioned among Assessed Property for Fiscal Year 2025-26 is $ 8,963,913 which represents 100% of the City's fire-related costs for Fiscal Year 2025-26 which are eligible for funding through the Fire Rescue Assessments. The remainder of such Fiscal Year budget for fire rescue services, facilities, and programs shall be funded from lawfully available City revenue other than Fire Rescue Assessment proceeds. The proposed Not-to-Exceed Fire Rescue Assessment Rates to generate the Fire Assessed Cost for such Fiscal Year are presented below. The approval of the Proposed Fire Rescue Assessment Rate Schedule by the adoption of this Preliminary Rate Resolution determines the maximum amount of the Fire Assessed Cost and the maximum, or not-to-exceed, rates that may be imposed and collected for the upcoming fiscal year. PROPOSED NOT-TO-EXCEED FIRE RESCUE ASSESSMENT RATES FOR FISCAL YEAR 2025-26 PROPERTY USE CATEGORIES RATE BASIS RATE Residential Per Dwelling Unit $ 270.76 Acreage/Vacant Per Acre $ 72.87 Commercial Per Square Foot $ 0.4177 Industrial/Warehouse Per Square Foot $ 0.0513 Section 7. Preliminary Assessment Roll. The City Manager or designee is directed to prepare, or cause to be prepared, an updated Preliminary Assessment Roll for Fiscal Year 2025-26, in the manner provided in the Fire Assessment Ordinance and this Resolution. The updated Assessment Roll shall include all Assessed Properties within the Fire Class Code categories and incorporate the Proposed Rates referenced in Section 6 above. Any property uses or classifications which were exempted from payment of the Fire Rescue Assessments by the Prior Assessment Resolutions shall be exempted from the Fire Rescue Assessments for Fiscal Year 2025-26. The City Manager or designee shall apportion the estimated Fire Assessed Cost to be recovered through Fire Rescue Assessments in the manner 5 RESOLUTION #2025-097 approved and adopted in this Resolution. A copy of this Preliminary Rate Resolution, the Fire Assessment Ordinance, the Prior Assessment Resolutions, the 2026 Methodology Study, documentation related to the estimated amount of the Fire Assessed Cost to be recovered through the imposition of Fire Rescue Assessments, and the updated preliminary Assessment Roll shall be maintained on file in the office of the City Clerk and open to public inspection. The foregoing shall not be construed to require that the updated Preliminary Assessment Roll proposed for Fiscal Year 2025-26 be in printed form if the amount of the Fire Rescue Assessment for each parcel of Assessed Property can be determined by the use of a computer terminal available to the public. It is ascertained, determined, and declared by this Resolution that the method of determining the Fire Rescue Assessments for fire services as set forth in this Preliminary Rate Resolution is a fair and reasonable method of apportioning the Fire Assessed Cost among parcels of Assessed Property located within the City. Section 8. Authorization of Public Hearing. There is established a public hearing to be held at 7:00 p.m. on September 15, 2025, in the City of Dania Beach City Commission Chamber, 100 West Dania Beach Boulevard, Dania Beach, Florida, at which time the City Commission will receive and consider any comments on the Fire Rescue Assessments. At the conclusion of such public hearing, the City Commission will consider adoption of the Annual Rate Resolution for Fiscal Year 2025-26 imposing the Fire Rescue Assessments for such Fiscal Year, approving and certifying the final Assessment Roll, and providing for collection of the assessments on the same bill as ad valorem taxes. Adoption of the Annual Rate Resolution after the public hearing and approval of the final Assessment Roll shall be the final adjudication of the issues presented therein (including, but not limited to, the determination of special benefit and fair apportionment, the method of apportionment, the Fire Rescue Assessment rates, the final Assessment Roll and the levy, collection and lien of the Fire Rescue Assessments), unless proper steps shall be initiated in a court of competent jurisdiction to secure relief within 20 days from the adoption of the Annual Rate Resolution. Section 9. Notice of Publication. The City Clerk shall publish a notice of the public hearing authorized by Section 8 of this Preliminary Rate Resolution in the manner and time provided in Section 23-98 of the Ordinance. 6 RESOLUTION #2025-097 Section 10. Notice by Mail. The Director of Finance shall provide information on the public hearing and the proposed not-to-exceed rates to the Broward County Property Appraiser's Office to be included in the TRIM (Truth in Millage) Notice to serve as first class notice as required by the Fire Assessment Ordinance. Section 11. Application of Assessment Proceeds. Proceeds derived by the City from the Fire Rescue Assessments will be utilized for the provision of fire services, facilities, and programs and will not be used for any EMS costs or services. In the event there is any unexpended or uncommitted assessment revenue remaining at the end of the Fiscal Year, such balance shall be carried forward and used only to fund fire services, facilities, and programs. Section 12. Conflict. That all resolutions or parts of resolutions in conflict with this Resolution are superseded and supplanted to the extent of such conflict. Section 13. Severability. That if any clause, section, other part or application of this Resolution is held by any court of competent jurisdiction to be unconstitutional or invalid, in part or application, it shall not affect the validity of the remaining portions or applications of this Resolution. Section 14. Effective Date. That this Resolution shall be in force and take effect immediately upon its passage and adoption. PASSED AND ADOPTED on July 8, 2025. Motion by Vice Mayor Salvino, second by Commissioner Lewellen. FINAL VOTE ON ADOPTION: Unanimous X Yes No Commissioner Lori Lewellen ____ ____ Commissioner Luis Rimoli ____ ____ Commissioner Archibald J. Ryan IV ____ ____ Vice Mayor Marco Salvino ____ ____ Mayor Joyce L. Davis ____ ____ SIGNATURES ON THE FOLLOWING PAGE 7 RESOLUTION #2025-097 ATTEST: ELORA RIERA, MMC JOYCE L. DAVIS CITY CLERK MAYOR APPROVED AS TO FORM AND CORRECTNESS: EVE A. BOUTSIS CITY ATTORNEY 8 RESOLUTION #2025-097 EXHIBIT A FY 2025-2026 Fire Services Assessment Study (“2026 Methodology Study”) Dated June 06, 2025 Prepared by Raftelis Financial Consultants CITY OF DANIA BEACH FY 2026 Fire Services Assessment Study DRAFT REPORT / June 6, 2025 341 N. Maitland Avenue, Suite 300, Maitland, FL 32751 www.raftelis.com June 6, 2025 Yeimy Guzman Chief Financial Officer City of Dania Beach 100 W Dania Beach Blvd Dania Beach, FL 33004 Subject: FY 2026 Fire Services Assessment Study Dear Ms. Guzman: Raftelis Financial Consultants, Inc. (Raftelis) is pleased to present this Draft Report of the FY 2026 Fire Services Assessment Study that we have conducted for the City of Dania Beach. This report presents the analysis of the study for consideration and adoption of the initial resolution hearing. Please review and provide us with any comments, requests for revisions, or additional scenarios. Upon receipt of any requested changes, we will issue a Final Draft for review, followed by the Final Report for your records. We appreciate the opportunity to be of service to the City and would like to thank the City staff for their valuable assistance and cooperation throughout the course of this study. Respectfully Submitted, Raftelis Financial Consultants, Inc. Joe Williams Senior Manager Erick van Malssen Senior Consultant City of Dania Beach / FY 2026 Fire Services Assessment Study Contents EXECUTIVE SUMMARY .................................................................... 1 Introduction ...........................................................................................................................1 Study Procedures ..................................................................................................................1 Summary of Study Results ...................................................................................................1 Full (100%) Cost Recovery Rate Calculation ............................................................................. 1 Partial Cost Recovery Rate Calculation – Revenue Neutral Rates ............................................ 2 Section 1 – Introduction ................................................................... 4 Background ...........................................................................................................................4 Methodology ..........................................................................................................................4 Section 2 – Fire Services Costs ....................................................... 7 Fire and Rescue Service Allocation .....................................................................................7 Calculation of the Net Revenue Requirement .....................................................................8 Section 3 – Calculation of the Fire Assessment ........................... 10 Assessment Property Classifications ............................................................................... 10 Calls For Service Analysis ................................................................................................. 12 Apportionment of the Net Revenue Requirement ............................................................ 13 Fire Assessment Rate Calculation ..................................................................................... 13 Full (100%) Cost Recovery Rate Calculation ........................................................................... 13 Partial Cost Recovery Rate Calculation – Revenue Neutral Rate Target Scenario .................. 14 Consideration of Fair Apportionment of Assessment ..................................................... 15 Section 4 – Summary of Recommendations .................................. 17 Section 5 – Appendix A .................................................................. 18 City of Dania Beach / FY 2026 Fire Services Assessment Study List of Tables and Figures Table ES 1 – FY 2026 Assessment Rate Calculation – Full (100%) Cost Recovery ................................. 2 Table ES 2 – Net Billed and Estimated Collected Revenue – Full (100%) Cost Recovery ........................ 2 Table ES 3 – FY 2026 Assessment Rate Calculation – Revenue Neutral Rate Target Scenario - $8,126,500 Net Revenue (94.44% Cost Recovery) .................................................................................. 3 Table ES 4 – Revenue Neutral Rate Target Scenario - Net Billed and Estimated Collected Revenue (includes deduction of exemptions) - $8,126,500 Target Revenue ........................................................... 3 Table 1 – Current FY 2024 Fire Assessment Rates ................................................................................. 4 Table 2 – Allocation of Personnel between Fire and Rescue ................................................................... 8 Table 3 – Calculation and Projection of the Net Revenue Requirement ................................................... 9 Table 4 – Identified Units by BCPA Fire Class Category ........................................................................ 11 Table 5 – Fire Call Allocation to Real Property, by Property Type .......................................................... 12 Table 6 – Allocation of FY 2026 Net Revenue Requirement .................................................................. 13 Table 7 – FY 2026 Assessment Rate Calculation – Full (100%) Cost Recovery .................................... 13 Table 8 – Net Billed and Estimated Collected Revenue – Full (100%) Cost Recovery ........................... 14 Table 9 – FY 2026 Assessment Rate Calculation – Revenue Neutral Rate Target Scenario - $8,126,500 Net Revenue (94.44% Cost Recovery) .................................................................................................. 14 Table 10 - Revenue Neutral Rate Target Scenario - Net Billed and Estimated Collected Revenue (includes deduction of exemptions) - $8,126,500 Target Revenue ......................................................... 15 City of Dania Beach / FY 2026 Fire Services Assessment Study 1 EXECUTIVE SUMMARY Introduction The City of Dania Beach (“the City”) has annually levied and collected a Non-Ad Valorem Fire Assessment against benefitted properties within the City to fund the provision of fire services beginning Fiscal Year (FY) 1997. The City annually considers the continuance of the Fire Assessment program and the amount to be funded for Fire Services. This study intends to update the Fire Assessment program using current property, cost, and calls for service data. The calls for service data used to provide the basis of Fire Service cost allocation to property types can change over time, therefore periodic updates to the Fire Assessment calculations are required to accurately and fairly reflect current allocation parameters to benefited properties. In accordance with Florida Law, the costs associated with providing Fire Services and facilities must be reasonably apportioned to the properties that receive a benefit from Fire Service in proportion to the benefit received. Therefore, the recommended Fire Assessments calculated in this study were developed such that the costs incurred by the City in providing Fire Service will be recovered through assessments to properties in proportion to the benefit received by the demand for service as reflected in the calls for service from each respective property class. Study Procedures The study first identifies the full Fire Services cost requirements for FY 2026 that recognizes the high level of service traditionally provided by Broward Sherrif’s Office (BSO) and the City. This was accomplished by first allocating the full FY 2026 Proposed Fire Department budget between Fire Services and Emergency Medical Services (EMS) as required by Florida state statute. We also projected annual cost requirements for providing Fire Services in each year of a multi-year projection period from FY 2026 through FY 2030. This was accomplished through interactive work sessions with City staff to confirm allocation parameters, cost escalation rates, and the projected capital improvement plan. The FY 2026 Fire Service Net Revenue Requirement identified in the budget allocation and projection process was then apportioned to each property class based upon National Fire Incident Reporting System (NIFRS) calls for service data provided by the BSO. Current Fire Rescue Non-Ad Valorem Assessment Roll and Property data provided by the Broward County Property Appraiser was used as the primary data source for assigning assessment units to each parcel. Property classifications were based upon the currently assigned Fire Class Codes for each parcel as maintained on the Property Appraiser’s database. Once the allocation to property classes was complete, the Fire Assessment rate structure was developed and specific Fire Assessment rates for each property class were developed. Summary of Study Results Full (100%) Cost Recovery Rate Calculation To calculate the FY 2026 Fire Assessments, we utilized the apportioned costs and total units per property classification as discussed in detail in subsequent sections of this report. The amount of assessable costs allocable to each property class was divided by the number of assessment units identified in each property class to compute the City of Dania Beach / FY 2026 Fire Services Assessment Study 2 Fire Assessment to be imposed against each parcel. Table ES 1 below presents the calculated FY 2026 Assessment Rates at full (100%) cost recovery, as well as a comparison of the existing FY 2026 Assessment Rates: Table ES 1 – FY 2026 Assessment Rate Calculation – Full (100%) Cost Recovery While the full cost FY 2026 Net Revenue Requirement is apportioned to all properties, the actual revenue realized will be less because exempted property is included in the apportionment but cannot be billed/assessed. In addition, a 96% budget adjustment factor was used to calculate the estimated net collected revenue after accounting for early payment discounts to the assessment bills. Table ES 2 below presents the estimated net billed and estimated assessment revenue at full (100%) cost recovery. Table ES 2 – Net Billed and Estimated Collected Revenue – Full (100%) Cost Recovery Partial Cost Recovery Rate Calculation – Revenue Neutral Rates The City has requested Raftelis to calculate the assessments with the latest call and property data, targeting the same revenue that would be generated with the current adopted (FY 2025) rates. The Broward County Property Appraiser’s data shows that the current adopted rates would generate $8,465,100 (rounded) in billed assessment revenues. With the 96% budgetary adjustment/discount applied, the current rates would collect an estimated $8,126,500 (rounded) in net revenues. To accomplish the revenue target, the full cost NRR was reduced to 94.44% of the total potential costs. Table ES 3 below presents the rate calculations for this revenue target, while Table ES 4 shows the calculation of the target revenue. BCPA Category Description BCPA Code Call Allocation % Allocated FY 2026 NRR Allocated Units Unit Type FY 2026 - Calculated Rates per Unit FY 2025 - Current Rates per Unit Acreage (Vacant)A 0.54%52,880$ 726 Acre 72.87$ 85.23$ Commercial C 39.99%3,937,175$ 9,424,503 Sq Ft 0.4177$ 0.4213$ Residential R 50.93%5,014,009$ 18,518 Dwelling Unit 270.76$ 241.05$ Warehouse/Industrial W 3.47%341,318$ 6,650,500 Sq Ft 0.0513$ 0.0488$ Government, Exempt X 4.30%423,042$ 645,248 Sq Ft 0.6556$ N/A Not For Profit, Exempt Y 0.78%76,917$ 446,157 Sq Ft 0.1723$ N/A 100.00%9,845,342$ BCPA Category Description BCPA Code Allocated Assessment Less: Exemptions Total Billed Assessment Acreage (Vacant)A 52,880$ (2,856)$ 50,025$ Commercial C 3,937,175$ (133,606)$ 3,803,569$ Residential R 5,014,009$ (242,406)$ 4,771,603$ Warehouse/Industrial W 341,318$ (2,602)$ 338,716$ Government, Exempt X 423,042$ (423,042)$ -$ Not For Profit, Exempt Y 76,917$ (76,917)$ -$ 9,845,342$ (881,429)$ 8,963,913$ Budgetary Adjustment/Discount 96% FY 2026 Estimated Collected Revenue 8,605,356$ City of Dania Beach / FY 2026 Fire Services Assessment Study 3 Table ES 3 – FY 2026 Assessment Rate Calculation – Revenue Neutral Rate Target Scenario - $8,126,500 Net Revenue (94.44% Cost Recovery) Table ES 4 – Revenue Neutral Rate Target Scenario - Net Billed and Estimated Collected Revenue (includes deduction of exemptions) - $8,126,500 Target Revenue BCPA Category Description BCPA Code Call Allocation % Allocated FY 2026 NRR Allocated Units Unit Type FY 2026 - Calculated Rates per Unit FY 2025 - Current Rates per Unit Acreage (Vacant)A 0.54%49,940$ 726 Acre 68.82$ 85.23$ Commercial C 39.99%3,718,268$ 9,424,503 Sq Ft 0.3945$ 0.4213$ Residential R 50.93%4,735,231$ 18,518 Dwelling Unit 255.70$ 241.05$ Warehouse/Industrial W 3.47%322,341$ 6,650,500 Sq Ft 0.0484$ 0.0488$ Government, Exempt X 4.30%399,521$ 645,248 Sq Ft 0.6191$ N/A Not For Profit, Exempt Y 0.78%72,640$ 446,157 Sq Ft 0.1628$ N/A 100.00%9,297,941$ BCPA Category Description BCPA Code Allocated Assessment Less: Exemptions Total Billed Assessment Acreage (Vacant)A 49,940$ (2,696)$ 47,244$ Commercial C 3,718,268$ (125,958)$ 3,592,310$ Residential R 4,735,231$ (229,029)$ 4,506,201$ Warehouse/Industrial W 322,341$ (2,773)$ 319,568$ Government, Exempt X 399,521$ (399,521)$ -$ Not For Profit, Exempt Y 72,640$ (72,640)$ -$ 9,297,941$ (832,617)$ 8,465,324$ Budgetary Adjustment/Discount 96% FY 2026 Estimated Collected Revenue 8,126,711$ City of Dania Beach / FY 2026 Fire Services Assessment Study 4 Section 1 – Introduction Background The City of Dania Beach (“the City”) has annually levied and collected a Non-Ad Valorem Fire Assessment against benefitted properties within the City to fund the provision of fire services beginning Fiscal Year 1997. The City annually considers the continuance of the Fire Assessment program and the amount to be funded for Fire Services. This study intends to update the Fire Assessment program using current property, cost and calls for service data. The City’s current FY 2025 Fire Assessment rates by property class are presented in Table 1 below. These rates produced an estimated net collections of approximately $7.5 million upon issuance in FY 2025. Table 1 – Current FY 2024 Fire Assessment Rates The calls for service data used to provide the basis of Fire Service cost allocation to property types can change over time, therefore periodic updates to the Fire Assessment calculations are required to accurately and fairly reflect current allocation parameters to benefited properties. The term “Fire Services” as used in this study refers to the twenty-four hours per day, seven days per week service for fire suppression provided to City properties. The City has previously determined that the owners of property benefited by the proposed Fire Services should share in funding these services by imposition of non-ad valorem assessments. The City can fund through assessments up to 100% of the net Fire Services assessable costs, estimated to be $9,845,342 in fiscal year 2026, as detailed in subsequent sections of this report. The City contracts with the Broward Sheriff’s Office (BSO) for Fire Rescue Services and it also has legacy pension and other City costs that must continue to be funded in addition to those pension costs charged by BSO. Methodology The development of a Non-Ad Valorem Assessment to fund Fire Services requires that the services and facilities for which properties are to be assessed confer a special benefit upon the property burdened by the special assessment. Simply stated, there must be a logical relationship between the services and facilities provided and the benefit to real property assessed. In addition to the special benefit requirement, the costs associated with providing the services and facilities must be reasonably apportioned to the properties that receive a benefit from Fire Service in proportion to the benefit received. Therefore, the recommended Fire Assessments calculated in this study were developed such that the costs incurred by the City in providing Fire Service will be recovered through assessments to properties in proportion to the benefit received by the demand for service as reflected in the calls for service from each respective property class. BCPA Category Description Current Rates per Unit Unit Type Acreage (Vacant)85.23$ Acre Commercial 0.4213$ Sq Ft Residential 241.05$ Dwelling Unit Warehouse/Industrial 0.0488$ Sq Ft City of Dania Beach / FY 2026 Fire Services Assessment Study 5 This part of the report describes the assessment methodology used to develop the Fire Assessments. The first section discusses relevant Florida Law regarding Special Non-Ad Valorem Assessments, followed by sections discussing how Florida Law has been applied to the determination of special benefit and the apportionment of the annual revenue requirements of the Fire Assessment to benefitting properties. SUMMARY OF RELEVANT FLORIDA LAW GOVERNING SPECIAL ASSESSMENTS This section discusses relevant Florida Law regarding special non-ad valorem assessments as it relates to the City’s proposed Fire Assessment program. The discussion covers how Florida law relates to special benefit and proportional benefit. Special non-ad valorem assessments are a revenue source available to local governments in Florida to fund capital improvements as well as operations and maintenance expenses for essential services such as roads, drainage, Fire Services, utilities, etc. Florida case law has established two requirements for the imposition of a non-ad valorem special assessment. These two requirements have become known as the “two-pronged test”. They are 1) the property assessed must derive a special benefit from the improvement, service or facilities provided, and 2) the assessment must be fairly and reasonably apportioned among the properties that receive the special benefit. In considering special benefit, the following question must be considered, “Can a special benefit be derived from Fire Service by all properties within the City to meet the first prong of the two pronged test, even if all properties are not improved and/or do not receive calls for service?”. The answer is yes, based in part upon the Florida Supreme Court determination in Fire District No. 1 of Polk County v. Jenkins, a sufficient special benefit is derived by the availability of fire services to justify the imposition of the special assessment. Also, in Meyer v. City of Oakland Park, the Court upheld a sewer assessment on both improved and unimproved property, stating that the benefit need not be direct or immediate but must be substantial, certain and capable of being realized within a reasonable time. Also, In City of Hallandale v. Meekins, the Court indicated that the proper measure of benefits accruing to property from the assessed improvement was not limited to the existing use of the property, but extended to any future use which could reasonably be made. PROPORTIONAL BENEFIT It is well settled under Florida law that local governments are afforded great latitude regarding legislative determinations of special benefit and reasonable apportionment of costs (as evidenced by the Florida Supreme Court finding in City of Boca Raton v. State of Florida), that the apportionment of benefits is a legislative function, and that legislative determinations as to benefit and apportionment will be upheld unless the determination is arbitrary – that is, if reasonable persons may differ as to whether the land assessed was benefitted by the local improvement, the findings of the City officials must be sustained. In City of Boca Raton v. State of Florida, the Florida Supreme Court also determined that the manner of the assessment is immaterial and may vary, as long as the amount of the assessment for each tract is not in excess of the proportional benefits as compared to other assessments on other tracts. Accordingly, while any number of methodologies may be available for a given service or improvement, the community imposing the assessment is at liberty to select the methodology which provides the best fit in terms of local needs and circumstances. SPECIAL BENEFIT – THE FIRST PRONG OF THE TWO-PRONGED TEST Based upon discussions with City staff about the extent and nature of the Fire Services provided, we have concluded that all parcels within the City receive a special benefit from the Fire Services provided by BSO. In considering special benefit, it is important to consider that BSO maintains its Fire resources at a level that provides City of Dania Beach / FY 2026 Fire Services Assessment Study 6 a response readiness condition to respond to calls for service throughout the City at relatively equal levels of service. When needed, responses are made to calls for service without discrimination as to the property type, size, location within the City, or any other factors specific to the property requiring the service. In addition, Vacant lands not used actively in the production of agricultural products and services have Fire Services provided to them, and the City has determined that Fire Services provided to those lands derive benefit to them, due to the urbanized nature of the City. As such, all properties receive a special benefit from the mere availability of Fire Services. Such benefit is independent of, and realized even in the absence of, a call or need for actual service. The benefits include: • Continuous availability of immediate response to fire. • Provision of first responder medical aid to protect the life and safety of occupants. • Enhanced property value, marketability of and/or ability to develop property. • Lowering the cost of Fire Insurance by the presence of a professional and comprehensive Fire Service • Protection against the spread of fire to neighboring parcels, thereby limiting and containing liability. • Increased use and enjoyment of the parcel derived from continual and immediately available comprehensive fire protection service should the need arise. • Enhanced marketability and value of the parcel when compared to a similarly configured parcel for which fire protection services are unavailable. Therefore, the first prong of the two-pronged test (the property burdened by the assessment must derive a special benefit from the service provided by the assessment) is met because all properties in the City receive a special benefit from the City-wide Fire Service provided by BSO. FAIR APPORTIONMENT – THE SECOND PRONG OF THE TWO-PRONGED TEST In considering the assessment methodology, the second prong of the two-pronged test requires that the costs of the assessment must be fairly and reasonably apportioned among the properties that receive the special benefit. The Fire Services apportionment methodology used in this study allocates assessable costs based on the demand for Fire Services by classes of real property use as identified on the real property assessment roll prepared for the levy of ad valorem taxes. First, the assessable Fire Services costs are allocated among real property use categories based upon the historical demand for these services (cost apportionment). This demand is identified by examining the past three years of fire incident/calls for service data as reported by BSO to the State Fire Marshal’s office. Second, the costs attributed to each property class are apportioned among the parcels on a per dwelling unit basis for Residential uses, a square footage basis for non-residential uses, and a per acre basis for vacant parcels (parcel apportionment). Further discussion of the consideration of fair apportionment is continued after the presentation of source data, methodology and assessment rate calculation in subsequent sections of this report. City of Dania Beach / FY 2026 Fire Services Assessment Study 7 Section 2 – Fire Services Costs Fire and Rescue Service Allocation Florida case law requires that the imposition of a special assessment for Fire Services only be used to fund Fire Services and first response rescue services. A Fire Assessment may not fund Emergency Medical Services (EMS), including transportation (Florida Supreme Court opinion in City of North Lauderdale v. SMM Properties -825 So.2d 343 Fla. 2002). The City utilizes personnel who are certified firefighters that may also be qualified medical personnel. Personnel assigned to medical units may also be called upon to assist in firefighting duties. Because emergency medical services are not services for which the City can assess property, costs for those services cannot be included in the total fire services costs to determine the allowable assessed costs. Mutual aid services provided by other Fire Departments do not cost the City anything and those calls accordingly are not considered in this assessment. BSO provides the City with an annual “Consideration” budget that becomes the contract cost for the ensuing fiscal year. The budget is for fire, rescue, inspection, and administrative costs of providing fire rescue services. Additionally, the City has costs in addition to its contract with BSO. When BSO took over fire rescue operations from the City, it was left with significant legacy pension costs related to its former employees that still must be funded. Similarly, the City must fund those employees share of the City’s other post-employment benefits (generally retiree medical costs). The City must also pay for the costs of administering the assessment itself. These costs include legal and professional fees, notification fees from the property appraiser’s office, advertising, and discounts allowed on early payments of property tax bills. Of the sum of these costs, only those costs directly attributable or allocated to fire services can be included in the assessment. The remaining costs relate to the combined fire and EMS and must be allocated between the operations of those two services. While there are many ways to allocate the costs of these services, we have chosen to allocate them in proportion to the staffing of full-time equivalents (FTEs) by their function and shift assignment per apparatus. Fire Services budgets are largely driven by personnel costs. Fire costs are largely driven by insuring standby availability in the event of a fire. Similarly, EMS costs are largely driven by insuring standby availability in the event of a medical emergency. Although calls for service are used to allocate the Fire Services costs to the property classes (which is discussed in a later section of this report), calls for service are not a good basis for allocation between Fire Services and EMS because of the standby nature of those services which require a constant employ of personnel and facilities to be ready to respond. Accordingly, we believe that the fairest apportionment method is one that utilizes a personnel assignment-based allocation. As of FY 2026, BSO operates two fire suppression apparatus vehicles (Quints) and three rescue vehicles. The Quints each require three personnel each shift. Each rescue unit now maintains three personnel per shift. Each unit requires three sets of personnel by shift, therefore FTEs for each apparatus are multiplied by three times the personnel assignment per shift. BSO maintains one Fire Prevention Officer, and five Fire Safety Inspectors, all fully allocated to Fire Services. Finally, the District Fire Chief and Administrative Assistant are allocated to Fire and Rescue by the weighted results of the directly allocated personnel. Table 2 below presents the results of the personnel allocation. City of Dania Beach / FY 2026 Fire Services Assessment Study 8 Table 2 – Allocation of Personnel between Fire and Rescue Calculation of the Net Revenue Requirement To calculate the Fire Services Net Revenue Requirement (NRR) for FY 2026 and beyond, the proposed FY 2026 BSO budget as well as other City costs for Fire Services were projected using cost escalation factors identified by City Staff. In each year of the projection period, offsetting revenues from other sources were deducted from the expenditure requirements so that the full complement of dedicated Fire revenues is not double recovered. A 4% allowance (i.e. assumed reduction in fee revenues) for early payment/statutory discounts was included to determine the annual net revenue requirements to be recovered by the fire assessment fees. The projection of Fire Services Net Revenue Requirement for FY 2026 – FY 2030 is presented in Table 3. The Net Revenue Requirement in FY 2026 through FY 2030 represents 100% Cost Recovery or Maximum Allocated costs for the annual assessments as calculated herein. The maximum allocated cost for the FY 2026 Fire Assessment is $9,845,342 Assignment/Position Full Time Equivalents Fire Rescue Allocation Quint 1 9 9 Direct Fire Quint 17 9 9 Direct Fire Rescue 1 9 9 Direct Rescue Rescue 1 9 9 Direct Rescue Rescue 17 9 9 Direct Rescue Fire Prevention Officer 1 1 Direct Fire Fire Safety Inspectors 5 5 Direct Fire District Fire Chief 1 0.47 0.53 Weighted Administrative Assistant 1 0.47 0.53 Weighted Total 53 24.94 28.06 Fire/Rescue Allocation 47.06%52.94% City of Dania Beach / FY 2026 Fire Services Assessment Study 9 Table 3 – Calculation and Projection of the Net Revenue Requirement FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Annual Escalation Factor Expenditures Broward Sheriff's Office 20,663,351$ 21,593,202$ 22,564,896$ 23,580,316$ 24,641,430$ 4.50% City Fire Costs 1,247,000$ 1,303,115$ 1,361,755$ 1,423,034$ 1,487,071$ 4.50% Other City Operating Expenses 5,000$ 5,000$ 5,000$ 5,000$ 5,000$ 0.00% Property Appraiser and Tax Collector Fees 7,896$ 8,133$ 8,377$ 8,628$ 8,887$ 3.00% Advertisements 6,500$ 6,500$ 6,500$ 6,500$ 6,500$ 0.00% Legal and Professional Fees 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 0.00% Consultant Costs - Assessment Updates 35,000$ 35,000$ 35,000$ 35,000$ 35,000$ Total Expenditures 21,935,747$ 22,921,950$ 23,952,528$ 25,029,479$ 26,154,888$ Less: Direct EMS Costs (130,000)$ (135,850)$ (141,963)$ (148,352)$ (155,027)$ 4.50% Total Net Fire Costs Before Allocation 21,805,747$ 22,786,100$ 23,810,565$ 24,881,127$ 25,999,861$ % Allocated to Fire (1)47.06%47.06%47.06%47.06%47.06% Assessable Fire Costs 10,261,528$ 10,722,870$ 11,204,972$ 11,708,766$ 12,235,229$ Less: Attributed Revenues Hazmat Permit Fees (10,000)$ (10,000)$ (10,000)$ (10,000)$ (10,000)$ 0.00% Fire Inspection Fees (800,000)$ (828,000)$ (856,980)$ (886,974)$ (918,018)$ 3.50% Total Attributed Revenues (810,000)$ (838,000)$ (866,980)$ (896,974)$ (928,018)$ Net Assessable Fire Costs 9,451,528$ 9,884,870$ 10,337,992$ 10,811,791$ 11,307,210$ Plus: Assessment Discounts (4%)393,814$ 411,870$ 430,750$ 450,491$ 471,134$ Net Revenue Requirement 9,845,342$ 10,296,740$ 10,768,741$ 11,262,283$ 11,778,344$ (1) - Refer to Table 2 for Allocation calculation City of Dania Beach / FY 2026 Fire Services Assessment Study 10 Section 3 – Calculation of the Fire Assessment Assessment Property Classifications Using the Broward County Property Appraisers (BCPA) tax roll data, benefited parcels were identified using the various categories of land use codes within that data set. Additionally, and to keep the proposed apportionment categories as close to the existing categories as possible, we relied upon the Fire Class codes currently maintained by the BCPA. The BCPA has previously identified and coded the improved properties by type and assigned each parcel an appropriate Fire Class Code. We reviewed consistency in this data, and it was determined to be of high accuracy. This data has also undergone considerable review over time through prior studies. The Fire Class codes used are as follows: • Residential (“R”) This includes all residential dwelling units, be they single family, multifamily, mobile homes, or mobile home lots. This includes separate or attached guest houses or “granny flats” or anything considered a residential dwelling unit. • Commercial (“C”) This includes all property used for commercial activity, except where otherwise identified by its own Fire Class code and includes office and retail uses. It also includes recreational vehicle lots converted to commercial square footage as provided by statute. • Government (“X”) This includes any property owned by a federal, state, or local government. • Special (“S”, and generally mixed use) This includes property that has more than one use or improvement that contains more than one Fire Class code. An example might be a parcel which contained both a warehouse and an office use. Each use will be assigned the cost for that use. • Vacant Acreage Parcels Not Developed (“A”) This includes land that does not contain any improvement or structure but excludes property classified as agricultural. • Warehouse/Industrial (“W”) This includes manufacturing and processing sites, storage units (whether for commercial or non-commercial purposes), and warehousing sites. • Miscellaneous (“Y”) This includes properties that are used for Charitable, Educational, Literary, Scientific, or Religious organizations, or other properties defined under Florida Statutes. These properties may be assessed or may be excluded by the City from year-to- year. It should also be noted that properties that can sometimes be exempt from this assessment (e.g., church-owned residential properties, portions of warehouses used for exempt purposes, portions of office buildings used for exempt purposes) remain classified as “R”, “C”, “W”, etc. and are included in the assessment calculations, but are not assessed if the City has excluded them from the assessment levy. In addition, all Residential, Vacant, Commercial or Warehouse units for parcels categorized as “X” or “Y” are assigned to the relevant assessment types for allocation and rate calculation, even though the parcels are exempt ultimately not billed. For example, if a property is shown to contain a single-family residential dwelling (“R”) but is owned by a Church (“Y”), it’s dwelling unit will be allocated to the Residential rate calculation, but the parcel will not be billed the assessment. Again, these codes are used by BCPA to assist them in the administration of their rolls, and we believe them to be highly accurate at the parcel level. City of Dania Beach / FY 2026 Fire Services Assessment Study 11 Each BCPA parcel for the City also has, in addition to a Fire Class code, a Fire Basis element, which indicates the number of applicable billing units located on the parcel. For example, a single-family residential dwelling unit would have a Fire Basis element of “1”, indicating that the fixed residential assessment rate would be multiplied by “1” to arrive at an assessment amount and a duplex residential dwelling unit would have a Fire Basis element of “2”, indicating that the fixed residential assessment rate would be multiplied by “2” to arrive at an assessment amount, and so on. Commercial, Warehouse/Industrial, and Not-for-profit are based upon the square footage of buildings on the property. The sum of all structures of similar fire class are added together to determine the total square footage for each fire class on each parcel. Acreage is based upon the number or fraction of an acre for the parcel. The Fire Class code “S”, Special, generally includes mixed-use parcels that have mixed assessment rates applied to them. The sum of each category (e.g., “Residential”, “Commercial”, etc.) are added together within this coding. The Fire Basis element code in this Fire Class code in this category indicates the amount of the assessment for that Fire Class code. The BCPA handles mixed-use parcels as exceptions and manually calculates the assessment based upon the particular mix of uses that exist on those parcels. Mobile Home parks are assessed whether or not a lot/space is occupied. Each mobile home lot/space is assessed a residential assessment rate. The commercial component of a mobile home park may include a calculation based on the total of any commercial structures located on the parcel plus an assigned commercial structure size of the minimum square footage of 1,200 square feet that is mandated by the Department of Health under Chapter 64E-15.002(3), Florida Administrative Code for Recreational Vehicle Park spaces and a square footage of 500 square feet for tent spaces inside Recreational Vehicle Parks, also as mandated by Chapter 64E- 15.002(3), Florida Administrative Code. The City does not have any parks that have only recreational vehicles. Mobile home parks are mixed-use parcels. There were 14,301 unique parcels or folio numbers within the City of Dania Beach fire assessment district provided to us by the BCPA in June 2025. Among these individual parcels are non-assessable, fully excluded parcels such as residential multi-family common areas, submerged lands, lake bottoms, right of ways, etc. For all real property used in the allocation of the NRR, the unit counts by BCPA Fire Class category code and use code counts appear below: Table 4 – Identified Units by BCPA Fire Class Category The City may not ultimately assess all the properties within these fire class categories for Fire Services as the City traditionally has exempted some uses (e.g., non-profits, houses of worship, and other properties also exempt from property taxes) of property from the fire assessment. Commercial, Warehouse/Industrial, and, if levied, Not-for- BCPA Category Description BCPA Code Allocated Units Unit Type Acreage (Vacant)A 726 Acres Commercial C 9,424,503 Sq Ft Residential R 18,518 Dwelling Units Warehouse/Industrial W 6,650,500 Sq Ft Government, Exempt X 645,248 Sq Ft Not For Profit, Exempt Y 446,157 Sq Ft City of Dania Beach / FY 2026 Fire Services Assessment Study 12 profit parcels are assessed based on square footage of the structures by fire class on each parcel. The costs associated with any exempt parcels have not been reallocated to the remaining non-exempt parcels and those costs are assumed by other sources of City revenue. Calls For Service Analysis The costs identified in this study are apportioned to property categories based upon an analysis of the calls for service data provided by BSO. The call/incident data identified the number and type of calls made by City Fire and EMS vehicles for three fiscal-years beginning October 1, 2021 (FY 2022) – September 30, 2024 (FY 2024). The call/incident data is extracted from the National Fire Incident Reporting System (NIFRS). The data field containing the type of call/incident was used to separate calls determined to be Fire Services, and those determined to be EMS or other non-Fire calls. Only Fire Services calls were used for the apportionment of the Fire Assessments. Schedule 1 of Appendix A presents the full list of unique call/incident types in the data set provided by BSO, and the identification of incident type as being either Fire or EMS for the assessment calculations. Certain call types were considered Non-Fire related such as cancelled calls, false alarms or erroneous records. We also excluded from the call data calls to property that was located outside of the City limits or served for fire rescue by other entities, such as the Fort Lauderdale/Hollywood International Airport or Port Everglades. The call data represented 20,884 calls over the three fiscal-year time period. Of these calls, 2,190 were identified by incident type as Fire related. Beyond identifying the call/incident type, we then allocated the Fire calls using property types as coded in the call data. Schedule 2 of Appendix A presents each unique property use code in the NIFRS data, and the application of the property categories to each code as utilized in this study. Of the 2,190 calls identified as Fire related, 2,048 were calls to real property and specific property uses. The remaining 142 calls were to non-real property or non-specific property and were therefore excluded from the apportionment analysis. The remaining 2,048 calls were assigned to the assessment property classifications. Table 5 below illustrates the assignment of calls to the property categories identified in the previous subsection. The percentages identified in the Fire Calls to Real Property are used to allocate the FY 2026 Net Revenue Requirement to each property class. Table 5 – Fire Call Allocation to Real Property, by Property Type All Eligible Calls - Real Property BCPA Code 3-Year Call Total % of Total Acreage, Vacant, Lot A 11 0.54% Commercial C 819 39.99% Residential R 1,043 50.93% Warehouse/Industrial W 71 3.47% Government X 88 4.30% Not For Profit Y 16 0.78% 2,048 100.00% City of Dania Beach / FY 2026 Fire Services Assessment Study 13 Apportionment of the Net Revenue Requirement The next step in the Fire Assessment calculation is to allocate the FY 2026 Net Revenue Requirement amongst the property classes. This is done by utilizing the allocations of Fire calls to real property as identified in the previous section. Featured below, Table 6 contains the apportionment of the FY 2026 Net Revenue Requirement to the identified property classes. Table 6 – Allocation of FY 2026 Net Revenue Requirement Fire Assessment Rate Calculation Full (100%) Cost Recovery Rate Calculation To calculate the FY 2026 Fire Assessments, we utilized the apportioned costs and total units per property classification as identified in the previous sections of this report. The amount of assessable costs allocable to each property class was divided by the number of assessment units identified in each property class to compute the Fire Assessment to be imposed against each parcel. Table 7 below presents the calculated FY 2026 Assessment Rates at full (100%) cost recovery, as well as a comparison of the existing FY 2025 Assessment Rates: Table 7 – FY 2026 Assessment Rate Calculation – Full (100%) Cost Recovery While the full cost FY 2026 Net Revenue Requirement is apportioned to all properties, the actual revenue realized will be less because exempted property is included in the apportionment but cannot be billed/assessed. In addition, BCPA Category Description BCPA Code Call Allocation % Allocated FY 2026 NRR Acreage (Vacant)A 0.54%52,880$ Commercial C 39.99%3,937,175$ Residential R 50.93%5,014,009$ Warehouse/Industrial W 3.47%341,318$ Government, Exempt X 4.30%423,042$ Not For Profit, Exempt Y 0.78%76,917$ Total:100.00%9,845,342$ BCPA Category Description BCPA Code Call Allocation % Allocated FY 2026 NRR Allocated Units Unit Type FY 2026 - Calculated Rates per Unit FY 2025 - Current Rates per Unit Acreage (Vacant)A 0.54%52,880$ 726 Acre 72.87$ 85.23$ Commercial C 39.99%3,937,175$ 9,424,503 Sq Ft 0.4177$ 0.4213$ Residential R 50.93%5,014,009$ 18,518 Dwelling Unit 270.76$ 241.05$ Warehouse/Industrial W 3.47%341,318$ 6,650,500 Sq Ft 0.0513$ 0.0488$ Government, Exempt X 4.30%423,042$ 645,248 Sq Ft 0.6556$ N/A Not For Profit, Exempt Y 0.78%76,917$ 446,157 Sq Ft 0.1723$ N/A City of Dania Beach / FY 2026 Fire Services Assessment Study 14 a 96% budget adjustment factor was used to calculate the estimated net collected revenue after accounting for early payment discounts to the assessment bills. Table 8 below presents the estimated net billed and estimated assessment revenue at full (100%) cost recovery. Table 8 – Net Billed and Estimated Collected Revenue – Full (100%) Cost Recovery Partial Cost Recovery Rate Calculation – Revenue Neutral Rate Target Scenario The City has requested Raftelis to calculate the assessments with the latest call and property data, targeting the same revenue that would be generated with the current adopted (FY 2025) rates. The Broward County Property Appraiser’s data shows that the current adopted rates would generate $8,465,100 (rounded) in billed assessment revenues. With the 96% budgetary adjustment/discount applied, the current rates would collect an estimated $8,126,500 (rounded) in net revenues. To accomplish the revenue target, the full cost NRR was reduced to 94.44% of the total potential costs. Table 9 below presents the rate calculations for this revenue target, while Table 10 shows the calculation of the target revenue. Table 9 – FY 2026 Assessment Rate Calculation – Revenue Neutral Rate Target Scenario - $8,126,500 Net Revenue (94.44% Cost Recovery) BCPA Category Description BCPA Code Allocated Assessment Less: Exemptions Total Billed Assessment Acreage (Vacant)A 52,880$ (2,856)$ 50,025$ Commercial C 3,937,175$ (133,606)$ 3,803,569$ Residential R 5,014,009$ (242,406)$ 4,771,603$ Warehouse/Industrial W 341,318$ (2,602)$ 338,716$ Government, Exempt X 423,042$ (423,042)$ -$ Not For Profit, Exempt Y 76,917$ (76,917)$ -$ 9,845,342$ (881,429)$ 8,963,913$ Budgetary Adjustment/Discount 96% FY 2026 Estimated Collected Revenue 8,605,356$ BCPA Category Description BCPA Code Call Allocation % Allocated FY 2026 NRR Allocated Units Unit Type FY 2026 - Calculated Rates per Unit FY 2025 - Current Rates per Unit Acreage (Vacant)A 0.54%49,940$ 726 Acre 68.82$ 85.23$ Commercial C 39.99%3,718,268$ 9,424,503 Sq Ft 0.3945$ 0.4213$ Residential R 50.93%4,735,231$ 18,518 Dwelling Unit 255.70$ 241.05$ Warehouse/Industrial W 3.47%322,341$ 6,650,500 Sq Ft 0.0484$ 0.0488$ Government, Exempt X 4.30%399,521$ 645,248 Sq Ft 0.6191$ N/A Not For Profit, Exempt Y 0.78%72,640$ 446,157 Sq Ft 0.1628$ N/A 100.00%9,297,941$ City of Dania Beach / FY 2026 Fire Services Assessment Study 15 Table 10 - Revenue Neutral Rate Target Scenario - Net Billed and Estimated Collected Revenue (includes deduction of exemptions) - $8,126,500 Target Revenue Consideration of Fair Apportionment of Assessment While there can be many ways to fairly apportion the costs of the fire services to benefited properties, we note the following: Apportioning costs among classifications of property based upon the historical demand for fire rescue services is a fair and reasonable method because it reflects the property uses' potential fire risk based upon building use and is a reasonable proxy for the firefighters training and experience, quantity and size of apparatus, and other special firefighting equipment that must be available in accordance with the City’s standards and practices. It is fair and reasonable to allocate costs to any particular non-residential structure without any limit to the square footage of a structure as large buildings require more resources and more value of property benefits from fire protection. It is fair and reasonable to not consider the flow capacity of fire apparatus as a limiting factor to fire protection as larger buildings will have fire flows provided independent of the apparatus cumulative pumping capacity. The amount of personnel engaged in firefighting increases with building size and personnel costs are the largest costs in fire protection. Buildings cannot be permitted for construction if a local government cannot provide adequate fire protection at the time they are ready for occupancy. Accordingly, we have removed tranches from earlier studies and have determined that limits on the size of structures may shift the cost burden to owners of smaller structures. Apportioning costs among classifications of property (Fire Class code) based upon both historical demand for fire rescue services is fair and reasonable and proportional to the special benefit received and will ensure that no property is assessed an amount greater than the special benefit received. Apportioning costs to unimproved properties is fair and reasonable as fire call data demonstrates that there are calls to those properties that are not infrequent. Fires on unimproved properties can spread to other parcels, both improved and unimproved, and in an urban environment, uncontrolled or unaddressed fires can cause significant damage. Property owners can be held responsible for fires on their property that spread to other parcels. The fire rescue incident reports (NFIRS) are the most reliable data available to determine the potential demand for fire services from property use and to determine the benefit to property use resulting from the demand for fire services to protect and serve buildings and land located within assessed property and their intended occupants. There exist sufficient fire incident reports that document the historical demand for fire services from assessed property within the property use categories. The relative demand that has been determined for each property use BCPA Category Description BCPA Code Allocated Assessment Less: Exemptions Total Billed Assessment Acreage (Vacant)A 49,940$ (2,696)$ 47,244$ Commercial C 3,718,268$ (125,958)$ 3,592,310$ Residential R 4,735,231$ (229,029)$ 4,506,201$ Warehouse/Industrial W 322,341$ (2,773)$ 319,568$ Government, Exempt X 399,521$ (399,521)$ -$ Not For Profit, Exempt Y 72,640$ (72,640)$ -$ 9,297,941$ (832,617)$ 8,465,324$ Budgetary Adjustment/Discount 96% FY 2026 Estimated Collected Revenue 8,126,711$ City of Dania Beach / FY 2026 Fire Services Assessment Study 16 category by an examination of such fire incident reports is consistent with the experience of the City. Therefore, the use of the relative percentages that were determined by an examination of fire rescue incident reports is a fair and reasonable method to apportion the fire services assessed costs among the property use categories (Fire Class codes). Neither the size nor the value of the residential property determines the scope of the required fire response by the City. The potential demand for fire services is driven by the existence of a dwelling unit. Apportioning the percentage of the fire services assessed costs relating to the relative demand for fire services attributable to residential property on a per dwelling unit basis (Fire Basis) is required to avoid cost inefficiency and unnecessary administration and is a fair and reasonable method of parcel apportionment based upon historical call data. The separation of non-residential property buildings by actual square footage (Fire Basis) is fair and reasonable for the purpose of parcel apportionment for the relative demand because the demand for fire service is determined and measured by the actual square footage of structures and improvements within benefited parcels. The greater the building area, the greater the potential for a large fire and the greater the amount of firefighting resources that must be available in the event of a fire in a structure of that building’s size. It is fair and reasonable to correlate a building’s benefit directly to a building’s size, without limit. Based upon the historical demand for fire protection services, the percentages of the City’s total fire protection assessable costs attributable to vacant non-agricultural properties were calculated. The costs attributable to parcels were divided by the number of acres (Fire Basis) associated with parcels in the Acreage category to compute the fire assessment rate per acre. An acreage charge is a fair and reasonable allocation for vacant non-agricultural properties. For residential parcels that contain non-residential buildings, non-residential improvements located on the parcel were treated according to their non-residential property use category and size to compute the parcel’s non- residential fire protection assessment. This assessment was then added to the parcel’s residential fire services assessment. For non-residential parcels that contain a residence, the number of dwelling units by type located on the parcel was multiplied by the rate per dwelling unit to compute the parcel’s residential fire services assessment. This assessment was then added to the parcel’s non-residential fire services assessment. For agricultural parcels that contain a residence or non-residential building, the parcel was assessed for the actual number of dwelling units by type located on the parcel and/or the appropriate assessment for the non-residential building square footage. The property used for agricultural purposes was not assessed. We believe that the apportionment methodology prepared here is fair and reasonable and benefits the property that will be assessed and that it fits the particular properties in and nature of the City of Dania Beach. City of Dania Beach / FY 2026 Fire Services Assessment Study 17 Section 4 – Summary of Recommendations Based upon the results of the analysis presented herein, we recommend the following: 1. We recommend the Assessment Rates presented herein to be adopted by the City for FY 2026 at or below the full cost recovery calculation. 2. We recommend the City continue its policy of evaluating the fire assessment rates on an annual basis and adjusting the assessment rates to reflect increases in the cost of Fire Service. 3. We recommend the City to continue to update the fire assessment rates annually to keep pace with ongoing changes in costs, call allocations and property demographics. City of Dania Beach / FY 2026 Fire Services Assessment Study 18 Section 5 – Appendix A Schedule 1 – NFIRS Call Data Call/Incident Type Categorizations Schedule 2 – NFIRS Call Data Property Use Categorizations City of Dania Beach FY 2026 Fire Services Assessment Study NFIRS Type Code NFIRS Type Description Included? Call Type 111 Building fire Y Fire Services 113 Cooking fire, confined to container Y Fire Services 121 Fire in mobile home used as fixed residence Y Fire Services 122 Fire in motor home, camper, recreational vehicle Y Fire Services 131 Passenger vehicle fire Y Fire Services 138 Off-road vehicle or heavy equipment fire Y Fire Services 151 Outside rubbish, trash or waste fire Y Fire Services 154 Dumpster or other outside trash receptacle fire Y Fire Services 161 Outside storage fire Y Fire Services 221 Overpressure rupture of air or gas pipe/pipeline Y Fire Services 321 EMS call, excluding vehicle accident with injury N EMS/Rescue/Other 322 Motor vehicle accident with injuries N EMS/Rescue/Other 323 Motor vehicle/pedestrian accident (MV Ped)N EMS/Rescue/Other 324 Motor vehicle accident with no injuries.N EMS/Rescue/Other 341 Search for person on land N EMS/Rescue/Other 342 Search for person in water N EMS/Rescue/Other 353 Removal of victim(s) from stalled elevator Y Fire Services 357 Extrication of victim(s) from machinery N EMS/Rescue/Other 372 Trapped by power lines N EMS/Rescue/Other 411 Gasoline or other flammable liquid spill Y Fire Services 412 Gas leak (natural gas or LPG)Y Fire Services 413 Oil or other combustible liquid spill Y Fire Services 421 Chemical hazard (no spill or leak)Y Fire Services 422 Chemical spill or leak Y Fire Services 424 Carbon monoxide incident Y Fire Services 442 Overheated motor Y Fire Services 444 Power line down Y Fire Services 445 Arcing, shorted electrical equipment Y Fire Services 451 Biological hazard, confirmed or suspected Y Fire Services 463 Vehicle accident, general cleanup N EMS/Rescue/Other 511 Lock-out N EMS/Rescue/Other 531 Smoke or odor removal Y Fire Services 541 Animal problem N EMS/Rescue/Other 542 Animal rescue N EMS/Rescue/Other 550 Public service assistance, other N EMS/Rescue/Other 551 Assist police or other governmental agency N EMS/Rescue/Other 552 Police matter N EMS/Rescue/Other 553 Public service N EMS/Rescue/Other 555 Defective elevator, no occupants Y Fire Services 561 Unauthorized burning Y Fire Services 611 Dispatched & canceled en route N EMS/Rescue/Other 621 Wrong location N EMS/Rescue/Other 622 No incident found on arrival at dispatch address N EMS/Rescue/Other 631 Authorized controlled burning Y Fire Services 700 False alarm or false call, other Y Fire Services 710 Malicious, mischievous false call, other Y Fire Services 711 Municipal alarm system, malicious false alarm Y Fire Services 713 Telephone, malicious false alarm Y Fire Services 715 Local alarm system, malicious false alarm Y Fire Services Schedule 1 - NFIRS Call Data Call/Incident Type Categorizations Raftelis, Inc. City of Dania Beach FY 2026 Fire Services Assessment Study NFIRS Type Code NFIRS Type Description Included? Call Type Schedule 1 - NFIRS Call Data Call/Incident Type Categorizations 721 Bomb scare - no bomb Y Fire Services 731 Sprinkler activation due to malfunction Y Fire Services 733 Smoke detector activation due to malfunction Y Fire Services 734 Heat detector activation due to malfunction Y Fire Services 735 Alarm system sounded due to malfunction Y Fire Services 736 CO detector activation due to malfunction Y Fire Services 741 Sprinkler activation, no fire - unintentional Y Fire Services 743 Smoke detector activation, no fire - unintentional Y Fire Services 744 Detector activation, no fire - unintentional Y Fire Services 745 Alarm system activation, no fire - unintentional Y Fire Services 746 Carbon monoxide detector activation, no CO Y Fire Services 812 Flood assessment Y Fire Services 813 Wind storm, tornado/hurricane assessment Y Fire Services 814 Lightning strike (no fire)Y Fire Services 815 Severe weather or natural disaster standby Y Fire Services 911 Citizen complaint Y Fire Services 1121 Fire in structure (contents only)Y Fire Services 1321 Commercial vehicle fire Y Fire Services 1341 Watercraft fire Y Fire Services 1411 Natural vegetation fire (trees, grass, brush)Y Fire Services 2411 Explosion only (no fire)Y Fire Services 3111 Decontamination unit response Y Fire Services 3311 Subject Locked IN (locked vehicle or secure area)Y Fire Services 3511 TRT - Building/Structure Collapse (with victims)Y Fire Services 3651 Boater/Watercraft in distress Y Fire Services 3811 EMS Standby/Detail N EMS/Rescue/Other 4611 Structure weakened or collapsed (No Victims)Y Fire Services 5221 Water Leak/Problem Y Fire Services 5501 Radiological Survey Y Fire Services 5541 Lift/Elderly Assist N EMS/Rescue/Other 6001 DELETE CALL N EMS/Rescue/Other 6511 Smoke Investigation (visual or smell of smoke)Y Fire Services 6711 Hazmat - Investigation, no hazards found Y Fire Services 7151 Malicious false alarm, Pull station activated Y Fire Services 7451 Medical alarm - unintentional N EMS/Rescue/Other Raftelis, Inc. City of Dania Beach FY 2026 Fire Services Assessment Study NFIRS Property Use Code NFIRS Property Use Description BCPA Fire Description 111 Bowling establishment Commercial 113 Electronic amusement center Commercial 116 Swimming facility: indoor or outdoor Commercial 120 Variable-use amusement, recreation places, other Commercial 121 Ballroom, gymnasium Commercial 122 Convention center, exhibition hall Commercial 123 Stadium, arena Commercial 124 Playground Commercial 129 Amusement center: indoor/outdoor Commercial 130 Places of worship, funeral parlors, other Not For Profit 131 Church, mosque, synagogue, temple, chapel Not For Profit 140 Clubs, other Commercial 141 Athletic/health club Commercial 142 Clubhouse Commercial 144 Casino, gambling clubs Commercial 150 Public or government, other Government 151 Library Government 152 Museum Government 160 Eating, drinking places, other Commercial 161 Restaurant or cafeteria Commercial 162 Bar or nightclub Commercial 170 Passenger terminal, other Commercial 171 Airport passenger terminal Commercial 173 Bus station Commercial 174 Rapid transit station Commercial 180 Studio/theater, other Commercial 181 Live performance theater Commercial 183 Movie theater Commercial 211 Preschool Government 213 Elementary school, including kindergarten Government 215 High school/junior high school/middle school Government 241 Adult education center, college classroom Not For Profit 254 Day care, in commercial property Commercial 311 24-hour care Nursing homes, 4 or more persons Residential 321 Mental retardation/development disability facility Not For Profit 322 Alcohol or substance abuse recovery center Not For Profit 331 Hospital - medical or psychiatric Commercial 341 Clinic, clinic-type infirmary Commercial 342 Doctor, dentist or oral surgeon office Commercial 343 Hemodialysis unit Commercial 361 Jail, prison (not juvenile) Government 363 Reformatory, juvenile detention center Government 365 Police station Government 419 1 or 2 family dwelling Residential 429 Multifamily dwelling Residential 439 Boarding/rooming house, residential hotels Residential 449 Hotel/motel, commercial Commercial 459 Residential board and care Residential 511 Convenience store Commercial 519 Food and beverage sales, grocery store Commercial 529 Textile, wearing apparel sales Commercial 539 Household goods, sales, repairs Commercial 549 Specialty shop Commercial 557 Personal service, including barber & beauty shops Commercial 559 Recreational, hobby, home repair sales, pet store Commercial 564 Laundry, dry cleaning Commercial 569 Professional supplies, services Commercial 571 Service station, gas station Commercial 579 Motor vehicle or boat sales, services, repair Commercial 581 Department or discount store Commercial 592 Bank Commercial 593 Office: veterinary or research Commercial 596 Post office or mailing firms Commercial 599 Business office Commercial 614 Steam or heat-generating plant Warehouse/Industrial 615 Electric-generating plant Warehouse/Industrial 629 Laboratory or science laboratory Commercial 631 Defense, military installation Government 635 Computer center Commercial 642 Electrical distribution Warehouse/Industrial 644 Gas distribution, gas pipeline Warehouse/Industrial 647 Water utility Warehouse/Industrial Schedule 2 – NFIRS Call Data Property Use Categorizations Raftelis, Inc. City of Dania Beach FY 2026 Fire Services Assessment Study NFIRS Property Use Code NFIRS Property Use Description BCPA Fire Description Schedule 2 – NFIRS Call Data Property Use Categorizations 648 Sanitation utility Warehouse/Industrial 655 Crops or orchard Acreage, Vacant, Lot 807 Outside material storage area Warehouse/Industrial 881 Parking garage, (detached residential garage) Residential 882 Parking garage, general vehicle Not-Real-Property, No Benefit, Excluded, Mutual Aid or Undetermined 888 Fire station Government 891 Warehouse Warehouse/Industrial 898 Dock, marina, pier, wharf Commercial 899 Residential or self-storage units Warehouse/Industrial 926 Outbuilding, protective shelter Not-Real-Property, No Benefit, Excluded, Mutual Aid or Undetermined 931 Open land or field Acreage, Vacant, Lot 935 Campsite with utilities Commercial 936 Vacant lot Acreage, Vacant, Lot 937 Beach Not-Real-Property, No Benefit, Excluded, Mutual Aid or Undetermined 941 Open ocean, sea or tidal waters Not-Real-Property, No Benefit, Excluded, Mutual Aid or Undetermined 946 Lake, river, stream Not-Real-Property, No Benefit, Excluded, Mutual Aid or Undetermined 951 Railroad right-of-way Commercial 952 Railroad yard Commercial 961 Highway or divided highway Not-Real-Property, No Benefit, Excluded, Mutual Aid or Undetermined 962 Residential street, road or residential driveway Residential 963 Street or road in commercial area Commercial 965 Vehicle parking area Not-Real-Property, No Benefit, Excluded, Mutual Aid or Undetermined 974 Aircraft loading area Not-Real-Property, No Benefit, Excluded, Mutual Aid or Undetermined 981 Construction site Commercial 982 Oil or gas field Warehouse/Industrial 983 Pipeline, power line or other utility right-of-way Not-Real-Property, No Benefit, Excluded, Mutual Aid or Undetermined 984 Industrial plant yard - area Warehouse/Industrial Raftelis, Inc.