Fire Chief Robert Dilallo

When the Lee County tax valuation rolls came out last week, the Lehigh Acres fire district had the distinction of seeing the largest increase of all the county’s taxing districts.

However, due to a referendum approved by the voters three years ago, the fire district will see no increase in revenue.

The Lehigh Acres Fire Control and Rescue District saw an increase of 9.92 percent, according to preliminary estimates released by Lee County Property Appraiser Kenneth Wilkinson. The estimated overall taxable valuation for the district was about $3.66 billion, up from $3.33 billion a year ago.

The fiscal impact to the fire district, though, is zero.

That is because Lehigh voters narrowly passed a referendum in 2014 that set a flat fee of $292 per residence, $21 per vacant lot and 30.35 cents per square foot for commercial and industrial.

Fire Chief Robert Dilallo said even with the nearly 10 percent increase – minus the fee the tax collector’s office receives for collections – the district will be $3 million below budget as a result of the real estate bust from a decade ago.

“That was the reason we had to go to a flat fee. Our ad valorem took a 60 percent cut from 2007 to 2014 before it finally started rebounding with the flat fee,” he said. “We were nearly $8 million behind on our budget. The flat fee gave us a stable budget.”

Dilallo said the flat fee will remain the approved method until property tax valuations finally catch up, which he said he will be happy to see for the sake of the homeowners.

As it is, the only way the fire district will get more revenue is from major growth in construction – which has only just started to occur – or for the fire commissioners to raise the fire fee.

Realtors and homeowners are pleased with the numbers, seeing it as proof that the area has finally caught up following the housing bust nearly a decade ago.

Fred Elliott, of Coldwell Banker, said Lehigh represents the best of both worlds. Prices are not just going up, they also remain affordable.

“Most of the transactions are arms-length, so there are very few foreclosures. It’s a healthy market,” he said. “We have the highest percentage and we’re still the most affordable.”

Affordability is what many Realtors are selling when they promote housing in Lehigh; more property and house for the money, Elliott said. The houses have to remain so, which means the homes have to experience modest growth to avoid a correction or worse.

“The market was so deflated after the banks started selling off their assets from foreclosures; it’s recovering. It’s still more affordable than it was in 2006 and 2007,” he said.

After all the surplus homes were finally sold, the builders were able to step in to start new construction. Elliott said there are more building permits this year than last year and the trend will likely continue.

“We’re excited that people are back to work and people are able to afford to buy these properties,” he said.