The Leon County Board of County Commissioners voted to hold fire services assessment rates at the current level for fiscal 2026, authorize staff to remove the county's request for arbitration over the city's proposed rate increase, and retain a financial consultant to review alleged undercollection and unauthorized spending by the City of Tallahassee.

County Attorney Chastity Osteen told the board the county has taken the dispute resolution steps in the interlocal agreement with the city and recommended three staff options: rescind rate-increase arbitration, mail first-class notices that do not contemplate an increase, and hire a financial consultant to investigate several identified concerns. "Whether to adopt rates, and if so, in what amount as long as it's done legally is a purely legislative function," Osteen said, adding an arbitration panel could not force a legislative body to set rates.

The action follows the city's January notice that its five-year fire services fee reserve would be insufficient to cover newly identified costs and its subsequent vote in June to raise rates by about 22 percent across property categories, effective Oct. 1, 2025. County staff and commissioners told the board the county attempted a good-faith compromise that the city rejected and then initiated the interlocal dispute-resolution process. Staff said, in the course of preparing for arbitration, they identified three specific areas where the city may have expended or failed to collect funds consistent with the interlocal agreement; two of those have been validated and a third remains unconfirmed by the city.

Commissioners debated whether to limit the board's immediate work to preserving the current rate for fiscal 2026 (Options 1 and 2) or to also pursue the financial review now (Option 3). Supporters of adding Option 3 said the county has an obligation to verify whether the city has under-assessed properties or spent funds without the county's authorization before asking residents to pay more. Commissioner Minor, who supported Options 1, 2 and 3, said the county's review could identify monies that must be covered from other city sources rather than by raising rates for county residents.

Residents who spoke during the public-comment portion urged the board to oppose a rate increase. Stanley Sims, who gave his address for the record, thanked county staff for the legal analysis and said he opposed arbitrary increases that would fall on taxpayers outside city voting jurisdiction. Dorothy Inman Johnson, identifying herself as CEO of Citizens for Government Accountability, called the increase regressive and said nonprofit agencies could see more demand for assistance if rates rise.

The board approved the substitute motion to adopt staff's three options by a 5-2 vote. Commissioners Cummings and Maddox voted "no," and five commissioners voted in favor. Under the approved direction, county staff will:

- Rescind the county's pursuit of arbitration on the question of whether a rate increase may be compelled;
- Send first-class notices next week to affected property owners indicating the county does not intend to adopt a rate increase for FY 2026; and
- Retain an independent financial consultant, at county expense, to investigate the staff-identified instances of possible unauthorized spending and undercollection by the City of Tallahassee and, if appropriate, pursue dispute-resolution steps allowed under the interlocal agreement.

County staff warned the timing for the consultant's work depends on the city's cooperation in producing records and answering follow-up questions; staff estimated the review would take months. Commissioners were clear that the vote preserves the county's position that the interlocal agreement requires mutual agreement for rate changes and that the board must hold partners to the terms of that contract.

The board did not adopt any new rates today and directed staff to report back with next steps from the consultant review and any additional legal or budgetary implications. The meeting concluded after the vote.