Florida Supreme Court Rules Cape Coral Fire Assessment Program Lawful, Upholds Validation of Bonds to Finance Fire Facilities
On May 7, the Florida Supreme Court upheld the Cape Coral fire assessment program over challenges from affected property owners. The City adopted the fire assessment in August, 2013 in order to fund a substantial portion of its annual fire department budget. Bryant Miller Olive attorney Chris Roe assisted the City with development and implementation of the assessment program which is estimated to generate at least $12 million annually. The method selected by the City for apportioning the assessment among affected properties is the relatively new “readiness to serve” or “availability” method which allocates a portion of the fire department budget on an equal, per parcel basis among all parcels (developed and undeveloped), and allocates the remaining costs according to the relative value of improvements constructed on developed parcels. The methodology had also been adopted by several other Florida communities but was untested in the appellate courts.
In September 2013, Chris and fellow firm shareholder Susan Churuti initiated a bond validation pursuant to Chapter 75, Florida Statutes, to validate the fire assessment and the City’s authority to finance fire protection facilities with proceeds of the assessment. The validation was challenged at the trial court proceeding by eight landowners opposed to the availability methodology. The intervening property owners contested both tiers of the assessment, asserting that the apportionment of costs on a per parcel basis was arbitrary and that the use of improvement value rendered the assessment an unlawful tax. After a four day trial which included arguments from a late-intervening landowner, the trial court ruled in favor of the City and upheld the methodology.
Several of the contesting property owners then appealed the decision to the Florida Supreme Court. Various parties filed amicus briefs in support of the City and the readiness methodology including Cocoa, North Port and the Florida League of Cities, arguing the lawfulness of the method and the importance of home rule authority to address local issues. Oral arguments were held on December 4, 2014.
The Supreme Court issued its opinion on May 7 which unanimously sided with Cape Coral in upholding the fire assessment program and availability methodology. The opinion, written by Justice James E.C. Perry, concluded that Cape Coral properly exercised is authority to impose a fire assessment and that the assessment does not violate existing law. “By adopting the [availability] approach recommended in the study, the City has attempted to apportion the costs based on both the general availability of fire protection services to everyone (Tier 1) and the additional benefit of improved property owners of protecting structures from damage (Tier 2).” The comprehensive ruling was a great victory for Cape Coral, the several other cities using or considering the new methodology, and for all municipalities and counties in the state as a validation of home rule authority to select a funding solution which best fits local needs and circumstances.
To read the court’s opinion in Scott Morris v. City of Cape Coral, click here.
