HomeMy WebLinkAboutAgenda - 06-08-2010 - 1ORANGE COUNTY
BOARD OF COMMISSIONERS
• ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 8, 2010
Action Agenda
Item No.
SUBJECT: FY 2010 -11 Fire Districts' Tax Rates
DEPARTMENT: County Manager and Financial PUBLIC HEARING: (Y /N)
Services
ATTACHMENT(S): INFORMATION CONTACT:
1. Fire Districts' Tax Rate Frank Clifton, (919) 245 -2300
Recommendations for FY 2010 -11 Clarence Grier, (919) 245 -2453
No
•PURPOSE: For the Board to have an opportunity to review and discuss the FY 2010 -11
Manager Recommended Budget related to fire districts' tax rates.
BACKGROUND: During tonight's work session, Commissioners will have the opportunity to
dialogue with four (4) fire districts who requested tax rate increases that are included in the FY
2010 -11 Manager Recommended Budget. Attachment 1 provides information regarding tax
rate recommendations for all twelve (12) fire districts in Orange County, as well as information
detailing the reasons for recommended tax rate increases in the four districts.
Staff has invited representatives from the four districts to tonight's work session to answer any
questions and /or provide additional information to the Board regarding the increases.
Information regarding all fire districts is located in the Fire District section of the FY 2010 -11
Manager Recommended Budget document beginning on page 19 -1.
The fire districts present at tonight's work session are the following:
• Cedar Grove Fire District — 1 cent increase, going from 6.36 cents per $100 assessed
valuation to 7.36 cents. This increase will generate an additional $27,152 in revenue for
the district.
• Chapel Hill Fire District — 5.34 cents increase, going from 2.16 cents per $100
assessed valuation to 7.50 cents. This increase will generate an additional $1,228 in
revenue for the district.
•
New Hope Fire District — 1.25 cents increase, going from 5.70 cents per $100 assessed
valuation to 6.95 cents. This increase will generate an additional $ 69,147 in revenue for •
the district.
• Orange Rural Fire District — 1 cent increase, going from 5.36 cents per $100 assessed
valuation to 6.36 cents. This increase will generate an additional $120,395, for the
district.
FINANCIAL IMPACT: Included in the Background Section above.
RECOMMENDATION(S): The Manager recommends that the Board discuss the topics noted
and provide direction to staff, as appropriate.
•
•
• • • ., ,
Fire Districts' Tax Rate Recommendations for FY 2010-11
� Current Manager Recommended Fund
Recommended Balance
2009-10 Recommended 1 Cent 1/10 Cent Fund Balance
District Tax Rate Tax Rate for Tax Rate Change Equals Equals Allocation for Amount as Reason for Increase
(in cents) 2010-11 for 2010-11 2010-11 of June 30,
2009
The increase is to cover the cost of installing more dry hydrants,along with aU
access roads in order to gain'access to`these hydrants. They will also be
Ceda�Grove ' 6.36 7::36 1'.00 $ 27,152 $ 2,715: $ - $ '6,930 installing all weathec:access roads to their water points so they can'get these'
water points certified: This wilf allbw them to lower their ISO rating which will:
lower the residents'fiomeowners insurance premiums:
This district serves six(6)properties. The Town of Chapel Hill Fire Department
provides comparable municipal service--as the Town of CaT�boro Fire Department'
provides for the South Orange fire district,but the tax rates for these districts are'
Chapel Hill -2.16 7'!50 5.34 $ 230 $ 23', $ ; $ 2,427 substantially different. The Chapel HiII district rate is currently 2.16.cents,while '
tlt2 South Orange district is cu�rently 7:85 cents. In order:to create a fair and
balanced fire districtttax rate,the tax rate would increase by 5.34 cents to 7.50
cents for FY 2010-11'.
Damascus 5.00 5.00 0.00 $ 9,026 $ 903 $ - $ 1,724
Efland 4.660 4.660 0.00 $ 65,402 $ 6,540 $ - $ 18,676
Eno 5.99 5.99 0.00 $ 68,264 $ 6,826 $ - $ 38,210
Little River 4.06 4.06 0.00 $ 40,800 $ 4,080 $ - $ 13,054
The increase is due to the followiog reasons: (1)',5alary arid health insurance'.
increases for their three futl-time firefighters and increases in hourly',rate for part- '.
time firefigHfers that are currently paid less than other tlepartments in the area;
(2)Purchase additional radios to Comply with the!mandated conver5ion to the'
new 800 MHz radio system;(3)Due to past budget constraints,the department '
has delayed necessa.ry repairs 8nd improuemerifs to Station 2,but these can no '
New Hope�'� ' S.70 6J95 1'.25 $ 55,318 $ 5,532 $ - $ 17,586 longer be delayed without compromising the operability of Chis station;(4)Due to
past budgef constraints,the depadmenf has also'delayed the replacement of:
hoses,appliances,tools,and other fire suppression equipment,but:these can no
, longer be delayed without adversely affecting operations and firefighter safety;(5)'
Historically;the tlepartment has relietl on volunteer bookkeeping,accounting,'and'
other professional services,but these servicesare no longer sustainable on a
volunteer basis,so increases in professional services costs will result in FY 2010-
11,
1
Fire Districts' Tax Rate Recommendations for FY 2010-11
Current Manager Recommended Fund
Recommended Balance
2009-10 Recommended 1 Cent 1I10 Cent Fund Balance
District Tax Rate Tax Rate for Tax Rate Change Equals Equals Allocation for Amount as Reason for Increase
(in cents) 2010-11 for 2010-11 2010-11 of June 30,
2009
Orange Grove 3.58 3.58 0.00 $ 74,692 $ 7,469 $ - $ 12,109
This is a temporary Eax rate increase for one yea�in ortler to fund construction of .
a new fire station(Station#3). The tax rate would return to the current rate of
5:36 cents in FY 201'1-12. The need for this station has become more apparent '
as insuranee companies have'started;o question homeowners about the distance
Orange Rural' 5.36 6136 1.00 $ 120,395, $ 12,040' $ = $ 42,458 to;the nea�est fire station. When homes are further than six miles from the
nearest fire station,insurance.companies consider these as unprotectetl property:
and either ehoose not to insute them or charge exceptionalfy high rates. The
department has purchased the land that will house the new station fhrough
savings as not to further burden the taxpayers,and the new station will be located
in°an area that will help to belfer serve the Central Orangefire district.
South Orange 7.85 7.85 0.00 $ 53,591 $ 5,359 $ - $ 23,387
Southern Triangle 5.00 5.00 0.00 $ 33,206 $ 3,321 $ - $ 57,674
White Cross 6.00 6.00 0.00 $ 36,298 $ 3,630 $ - $ 3,645 �i
I
$ 237,880
�'�After FY 2010-11,the New Hope fire district will lose approximately$40,000/year in fire tax revenue over a 3 year period from Chapel ,
Hill,Carrboro,and Durham related to previous annexation payment commitments expiring. I
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