The URL can be used to link to this page

Home My WebLink AboutAgenda - 06-09-2011 - 1ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 9; 2011 Action Agenda Item No. 1 SUBJECT: FY 2011-12 Fire Districts' Tax Rates DEPARTMENT: County Manager and Financial PUBLIC HEARING: (Y/N) No Services ATTACHMENT(S): INFORMATION CONTACT: 1. Fire Districts' Tax Rates for FY 2011- Frank Clifton, (919) 245-2300 12 Clarence Grier, (919) 245-2453 2. Historical Fire District Tax Rates (from FY 2004-05 to FY 2011-12) PURPOSE: For the Board to have an opportunity to review and discuss the FY 2011-12 fire districts' tax rates. BACKGROUND: During tonight's work session, Commissioners will have the opportunity to dialogue with four (4) fire districts who have requested tax rate increases for FY 2011-12. As a point of clarification to the Manager's Message in the Manager Recommended budget, fire districts requesting tax rate increases were advised that they would be given an opportunity to present their needs for a tax increase to the Commissioners at a work session. 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. Attachment 1 provides information regarding tax rate requests from all twelve (12) fire districts in Orange County for FY 2011-12, as well as information detailing the reasons for the requested tax rate increases from the four districts. Information regarding all fire districts is located in the Fire District section of the FY 2011-12 Manager Recommended budget document beginning on page 20-1. Attachment 2 is the same historical information as included on Page 20-6 of the Manager Recommended budget document, but is highlighted in a more legible manner. 2 The fire districts present at tonight's work session who have requested a tax rate increase are the following: New Hope Fire District (Page 20-3). - 2.00 cents increase, going from 6.95 cents to 8.95 cents per $100 assessed valuation. This increase will generate an additional $110,260 in revenue for the district. • Orange Grove Fire District (Page 20-4) - 0.50 cents increase, going from 3.58 cents to 4.08 cents per $100 assessed valuation. This increase will generate an additional $37,318 in revenue for the district. Orange Rural Fire District (Page 20-4) -the Board of County Commissioners approved a 1.00 cent tax increase, from 5.36 to 6.36 cents per $100 assessed valuation for FY 2010-11 only'for the construction of fire station #3. Instead of going back to the 5.36 cent rate, the district requested a 0.25 cent increase, to 5.61 cents for FY 2011-12. This increase will generate an additional $30,106 in revenue for the district. Also, the district requested an appropriation of $60,189 from their available fund balance; which is included in the Manager Recommended budget for FY 2011-12. The district's fund balance at June 30, 2011 is estimated to be approximately $89,000. • White Cross Fire District (Page 20-5) - 1.00 cent increase, going from 6.00 cents to 7.00 cents per $100 assessed valuation. This increase will generate an additional $36,473 in revenue for the district. FINANCIAL IMPACT: Included in the Background Section above. RECOMMENDATION(S): Based upon prior direction from the County Commissioners, to avoid increasing property taxes, the FY 11-12 Budget does not recommend raising taxes for any county services. Once the Fire Districts have presented their justifications for requesting tax increases, the County Commissioners should determine the appropriate action and give direction to county staff with regards to FY11-12 Fire District tax rates. Fire Districts' Tax Rates for FY 2011-12 Current Requested Fund 2010-11 Requested 1 Cent 1/10 Cent Fund Balance District Tax Rate for Estimated at Reasons for Districts' Requesting a Tax Rate Increase Tax Rate Equals Equals Balance for 2011-12 June 30, (in cents) 2011-12 2011 Cedar Grove 7.36 7.36 $ 26,940 $ 2,694 $ - $ 11,203 Chapel Hill 7.50 7.50 $ 228 $ 23 $ 1,935 Damascus 5.00 5.00 $ 9,089 $ 909 $ - $ 5,819 Efland 4.66 4.66 $ 65;199 $ 6,520 $ '- $ 38,228 Eno 5.99 5.99 $ 71,916 $ 7,192 $ - $ 88,426 Little River 4.06 4.06 $ 40,824 $ 4,082 $ - $ 24,947 This requested increase is the result of (1) an anticipated increase in operating costs of $51,420 related to utilities costs, increased gasoline and , diesel costs, increased health insurance costs for paid personnel, and the New Hope 6.95 ` 8:95 ' ~ $ 55,130 $ 5,513 $ - $ • 16,899 implementation of a necessary replacement program for personal protective equipment; and (2) an anticipated decrease in total revenue of $51,915 from ~ ~ K other jurisdictions due to the expiration of the annexation contracts with ` Chapel Hill and Carrboro. Requested increase is to cover the costs of the following capital outlay items: (1) a metal roof for the fire station ($26,000); the exsiting asphalt shingles must be replaced next year or they risk damage to the underlying roof itself. _ After obtaining several bids for alternative replacements, they learned that a Orange Grove 3.58 ~ ~ 4.08 $ 74,635 $ 7,464 $ - $ 25,042 metal roof was not only a fractional more expensive option, but also provided a much longer lasting solution; (2) radios for members who do not currently ~ ' have a radio and pager purchases mandated by recent communcations changes ($12,000). They are pursuing a number of grant requests in hopes r - of obtaining alternate funding, but so far have not been successful. w Fire Districts' Tax Rates for FY 2011-12 Current Requested Requested Fund Balance District 2010-11 Tax Rate for 1 Cent 1/10 Cent Fund Estimated at Reasons for Districts' Requesting a Tax Rate Increase Tax Rate 2011-12 Equals Equals Balance for June 30, (in cents) 2011-12 2011 The one cent tax increase approved for FY 2010-11 was approved as a temporary tax rate increase (from 5.36 to 6.36 cents) for one year in order to fund construction of a new fire station (Station #3). For FY 2011-12, they are unable to go back to the 5.36 cents rate due to increased fuel costs, a 20% Orange Rural 6.36 ~ 5.61 $ 120,422 $ 12,042 $ 60,189 $ 89,941 increase in health insurance, and a 50% increase in worker's compensation. Also, they need to replace 30 sets of turn out gear within the next 8 years, and 52 air pack bottles within the next five years. For FY 2011-12, they are requesting a tax rate of 5.61 cents, a .25 cents increase from 5.36 cents. South Orange 7.85 7.85 $ 53,493 $ 5,349 $ - $ 48,209 Southern Triangle 5.00 5.00 $ 33,233 $ 3,323 $ - $ 69,417 Requested increase is to help fund a 6,000 square foot addition and a 2,800 square foot renovation to their existing fire station. This construction is the final phase of a strategic plan they have been working toward for the past seven (7) years. Existing station is no longer adequate to house all of their White Cross 6.00 '7.00 $ 36,473 $ 3,647 $ - $ 14,995 vehicles and equipment. The new addition will allow for all vehicles to be housed in one building, provide proper training facilities., give a clean air location for their bottled air filling station, and give them a special decontamination and cleaning area. y 4~o,uv ~ Historical Fire District Tax Rates (from FY 2004-05 to FY 2011-12) (in cents per $100 valuation) Orange Orange South Southern Cedar Grove Cha el Hill Damascus Efland Eno Little River New Hoe Grove Rural Oran a Trian le White Cross 2004-05 7.30 2.00 3.00 4.65 6.40 5.20 6.50 3.90 5.10 9.20 3.00 4.80 ,r ~ 2005-06* .:' 730 ~~' 1.90 2.60 3.475 5.70 4.60 6.25 3.40 ', 5.60 9.20 2.60 4.20 ~ ~ 2006-07 7.30 1.90 %~ 4.00 ~' ~ ~ 4 225 ~ ~ ` 5.70 4.60 ~ ~ 6.75 '~~ - • 3,90 - ` ~ 5.60 9.20 ~" 4 00 `~~ •~'~` 4.20 2007-08 7.30 1.90 ~-'~ r 5 00~' 4.225 5.70 4.60 6.75 3.90 5.60 ~~ 9,50 ~ ~, ~~~~ 5.00 "~ ° ~~:5.00 '"~~' 2008-09 7.30 b Y 5 •'r ~ ~ ~v4.90~• ~ ~ ~• 6.00 ' _; 5 225 ~" • 5.70 4..60 6.75 4.20 ~='6.30 9.50 ' F 6A0'' l k"K ~~`~'6.00 2009-10* 6.36 2.16 5.00 4.66 ~ "5'.99 ~ ` 4.06 5.70 3.58 5.36 7.85 5.00 x,,6.00 r'.:'. k -r' ~ :: ~i 2010-11 ~ ~~` 7 36 '' ~' 7.50 ° P~ 5.00 4.66 5.99 4.06 ~~ ~° 6.95 - = ~ 3.58 -~" 6 36 -~~~`~ 7.85 5.00 6.00 2011-12 ~ ~~ ~~', ~~ ~ -~~~ ~ a ~. '~~ ~ :~ Re nested 7.36 7.50 5.00 4.66 5.99 4.06 ' 8.95 ~ 4.08 ~~ 5.61 ~ 7.85 5.00 ~ .7.00 *Revaluation Year ~BOLpand„hiyl~ghted deno,~es.tax rate~in~,rease_ _~; ,~ CJ7