Fire Municipal Service Taxing Unit Fund

The Fire Municipal Service Taxing Unit (MSTU) Fund is a special revenue fund to provide fire prevention, suppression, and protection services to the citizens of Pasco County who do not reside within a municipality. The Fire Rescue Department is funded by an ad valorem tax. The Emergency Medical Service (EMS) portion of the Fire Rescue Department is funded via the General Fund. Similarly, half of Fire Rescue Administration is funded via the Municipal Service Fund. Although funded from different sources, the Administration, EMS, Fire Suppression, Fire Prevention, and Fire Training Programs within the Fire Rescue Department operate as a cohesive and interdependent unit to provide Fire Rescue services to residents and visitors of Pasco County.

The Fire MSTU Fund budget is $110,967,392 in FY 2024. This represents an increase of $21,081,177 or 2.3% over the FY 2023 Adopted Budget. This main reason for this increase is due to the millage increase in the Fire MSTU Fund.

Major revenue sources for the FY 2024 Fire MSTU Fund budget include:

Ad valorem taxes represent a levy on the assessed value of real and personal property. The adopted millage rate for FY 2024 is 2.1225. This is a 0.3189 increase from the previous years millage rate of 1.8036. The primary revenue source for the Fire MSTU Fund is the ad valorem tax, which makes up 75% of total revenues. The property tax revenue increased $25,242,882 or 37% from FY 2023 due to increase in property values and new construction within Pasco County, not an increase in the ad valorem millage rate.

The ad valorem revenue generated by the FY 2024 millage rate is based on the July 1, 2023, assessed value provided by the Pasco County Property Appraiser’s Office. Tax Year 2024 gross taxable property value increased 16.7% to $46,065,632,415 on July 1st. Houses of worship, schools, and property owners that reside in a municipality that provides fire service are exempt from this property tax.

Fund balance is the main source of the Fire MSTU's miscellaneous revenues. Fund balance is the difference between revenues and expenditures from previous years. For example, while personnel costs are budgeted under the assumption that positions will be filled the entire year, retirements and other personnel moves occur leaving unspent funds which then accrue to Fund Balance. This is a non-recurring revenue source. State statute requires expected fund balances be budgeted. Budgeted Fund Balance decreased by $1,862,908 over the FY 2023 Adopted Budget.

The Fire Rescue Department depends on a number of smaller revenue sources, including a user fee for the review of building plans. The main source of the Fire MSTU's charges for services are fire plan reviews. The Fire Rescue Department’s Fire Prevention Division reviews building plans to ensure new construction adheres with current fire codes and conducts inspections of new construction to ensure those structures are built in accordance with those plans. Builders are charged a plan review fee to offset the cost of those inspections. Based on the smaller revenues, the Other Revenue Sources changed by $35,281 from the FY 2023 Adopted Budget. The change is due in most part to fire inspections and administrative fees.

Overall, the Fire MSTU Fund budget increased $21,081,177, or 2.3%, over the FY 2023 Adopted Budget. Note: Half of Fire Rescue Administration is funded in the Municipal Services Fund and EMS is funded in the General Fund.

Specific divisions within Fire Rescue and Public Safety Administration are funded in the Fire MSTU Fund, including Fire Suppression, Fire Training, Fire Prevention, and 50% of Fire Rescue Administration. The Fire Suppression Division responds to all fire calls and emergency situations. The Public Safety Branch Administration also is funded in the MSTU fund.

Reserves are the portion of fund balance that is legally segregated for specific purposes. The Board of County Commissioners has adopted a financial policy that the Fire MSTU Fund reserves an amount equal to two months of operating expenses, i.e., 16.7% of budgeted expenditures. This is known as the Committed Reserve. These funds are set aside so that in case of an emergency, the Department will be able to continue to conduct operations. The Fire MSTU Fund has a projected fiscal year-end fund balance of $23,559,279. That amount is designated as the Committed Reserve.