Largo warns it will lose hundreds of thousands under current fire contract; commission may issue 12‑month notice

City of Largo officials told the commission on Sept. 2 that the city's interlocal contract to provide fire and EMS services to the municipalities of Bellaire and Bellaire Bluffs (originating in 2015) contains a 5% cap on annual fee increases that has not kept pace with current personnel and equipment costs.

"At projected for FY '26, we will run a $270,000 deficit if we do not adjust the contract with those 2 communities. It gets even worse in FY '27 based on estimates to about $380,000," the City Manager said, explaining the city is currently subsidizing services under the existing terms. Staff said negotiations began in January, and the county is providing background information to help reconcile costs.

Commissioners discussed the option of giving a 12‑month termination notice — a contractual right — to put pressure on the partner communities and accelerate negotiations. One commissioner said giving notice would start the clock and could prompt more earnest bargaining; the commission agreed to place the item on the Sept. 16 agenda for potential formal action.

City staff reiterated the preference to continue providing services if an agreement can be reached that does not shift costs to Largo residents. Officials also noted there are contractual complexities related to capital investments such as fire stations sited in partner cities and that those provisions would need to be addressed in any termination or renegotiation.

Next steps: the commission intends to add a formal agenda item on Sept. 16 to consider whether to issue the 12‑month notice that would begin the termination clock for the interlocal agreement.