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HomeMy WebLinkAboutAgenda - 06-11-2013 - 1ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 11, 2013 Action Agenda Item No. 1 SUBJECT: FY 2013 -14 Fire Districts' Tax Rates 1 DEPARTMENT: County Manager and Financial PUBLIC HEARING: (Y /N) No Services ATTACHMENT(S): A. Fire Districts' Tax Rates for FY 2013 -14 B. Historical Fire District Tax Rates (from FY 2004 -05 to FY 2013 -14) INFORMATION CONTACT: Frank Clifton, County Manager (919) 245 -2300 Clarence Grier, Assistant County Manager /CFO (919) 245 -2453 Paul Laughton, Finance and Administrative Services (919) 245 -2152 PURPOSE: For the Board to have an opportunity to review and discuss the FY 2013 -14 fire districts' tax rates. BACKGROUND: During tonight's work session, Commissioners will have the opportunity to dialogue with ten (10) fire districts and /or fire service districts who have requested a tax rate increase for FY 2013 -14. As in the past, fire districts requesting tax rate increases present their needs for a tax increase to the Commissioners at a work session. Staff has invited representatives from the fire districts and /or fire service districts to tonight's work session to answer any questions and /or provide additional information to the Board regarding their increase. Attachment 1 provides information regarding tax rate requests from all twelve (12) fire districts in Orange County for FY 2013 -14, the amount of funds one cent on the tax rate generates, fund balance information, as well as information detailing the reasons for the requested tax rate increases. Information regarding all fire districts is located in the Fire District section of the FY 2013 -14 Manager Recommended Budget beginning on page 139. Attachment 2 reflects historical Fire District tax rates dating back to FY 2004 -05. The Fire Districts and /or Fire Service Districts requesting tax rate increases in FY 2013 -14 are as follows: • Greater Chapel Hill Fire Service District - increase of 7.50 cents (from 7.50 to 15.00 cents) • Damascus Fire District - increase of 3.8 cents (from 5.0 to 8.80 cents) • Efland Fire District - increase of 2.34 cents (from 4.66 to 7.00 cents) • Eno Fire District - increase of 2.0 cents (from 5.99 to 7.99 cents) • New Hope Fire District - increase of .50 cents (from 8.95 to 9.45 cents) • Orange Grove Fire District - increase of 1.00 cents (from 5.00 to 6.00 cents) • Orange Rural Fire District - increase of 1.75 cents (from 5.61 to 7.36 cents) • South Orange Fire Service District - increase of 2.15 cents (from 7.85 to 10.00 cents) • Southern Triangle Fire Service District - increase of 3.8 cents (from 5.0 to 8.80 cents) • White Cross Fire District - increase of 1.80 cents (from 7.00 to 8.80 cents) FINANCIAL IMPACT: Included in the Background Section above. RECOMMENDATION(S): The Manager recommends that the Board discuss the ten (10) Fire Districts' and /or Fire Service Districts' tax rate increases and give direction to county staff, as appropriate. Attachment A Fire Districts' Requests for FY 2013 -14 Current Requested Requested Requested Fund Balance District 2012 -13 Tax Tax Rate for Tax Rate 1 Cent 1/10 Cent Fund Balance at June 30, Reasons for Districts' Requesting a Tax Rate Increase Rate (in 2013 -14 Change Equals Equals for 2013 -14 2012 cents) 2013 -14 Cedar Grove 7.36 7.36 0.00 $ 27,249 $ 2,725 $ - $ 17,451 Chapel Hill 7.50 15.00 7.50 $ 18,743 $ 1,874 $ 1,991 New Fire Service District Damascus Fire District is not affected by the New North Chatham Fire Service District (as Southern Triangle is), Damascus 5.00 8.80 3.80 $ 9,321 $ 932 $ - $ 8,204 but their rate, since served by North Chatham Fire Department, will increase to 8.80 cents, which is the same rate charged in Chatham County. The increase will be used to provide two (2) paid firefighters in the district during weekdays; this should improve their response times and improve the quality of Efland 4.66 7.00 2.34 $ 67,059 $ 6,706 $ - $ 50,006 service. The funds will also be used to help keep the apparatus up to date, as prices continue to increase each year. The increase in taxes will be balanced by the savings homeowners in the district will receive by the ISO rating improving from a 7 to a 6. The increase is due to the requirements of the new Orange County Fire Contract, replacement of their current SCBAs, upgrade the SCBA fill station to meet new pressure Eno 5.99 7.99 2.00 $ 71,078 $ 7,108 $ - $ 89,581 requirements, increase daytime paid staff coverage from 5 days to 7 days /week, and to provide funds to purchase a new tanker. The increase is also needed to meet the needs of the district's 5 year purchasing plan. Little River 4.06 4.06 0.00 $ 42,044 $ 4,204 $ - $ 29,187 The increase is due to operational costs increases for professional services, computer and server replacement, New Hope 8.95 9.45 0.50 $ 56,638 $ 5,664 $ - $ 37,810 upgrades to Firehouse software and the CAD link to the new OSSI software in the 911 Center, as well as an increase in funding for apparatus replacement. This year, the district lowered their ISO rating from a 9 to a 6. Attachment A Fire Districts' Requests for FY 2013 -14 472,496 Current Requested Requested Requested Fund Balance District 2012 -13 Tax Tax Rate for Tax Rate 1 Cent 1/10 Cent Fund Balance at June 30, Reasons for Districts' Requesting a Tax Rate Increase Rate (in 2013 -14 Change Equals Equals for 2013 -14 2012 cents) 2013 -14 This is Year 2 of a 2 year plan to increase the tax rate to 6.00 cents to help cover the costs of land, construction of Orange Grove 5.00 6.00 1.00 $ 75,215 $ 7,522 $ - $ 11,755 Station #3 in the western portion of the district, and purchases of equipment and two additional fire trucks for the new station. The increase is needed to replace outdated and /or non- compliant equipment. With the upcoming mandated radio system upgrades, the district's 10 year old radios will be Orange Rural 5.61 7.36 1.75 $ 126,049 $ 12,605 $ 67,692 inoperable. To remain on the Viper System, they will need 36 portable radios at a total cost of $201,123. Other areas of need are compliant safety changes needed to their SCBAs, and the purchase of specialized rescue equipment to meet new rescue service needs. South Orange 7.85 10.00 2.15 $ 50,372 $ 5,037 $ - $ 60,811 New Fire Service District Southern Triangle 5.00 8.80 3.80 $ 18,634 $ 1,863 $ - $ 78,185 New Fire Service District (N. Chatham Fire Service District) As per a March 19, 2013 agenda abstract to the BOCC, the district is requesting an increase of 1.80 cents to cover White Cross 7.00 8.80 1.80 $ 36,179 $ 3,618 $ - $ 19,823 the costs of the following: a new Substation, additional paid staff, purchase of a new Tanker for the new Substation, and to cover increased operational costs. 472,496 Attachment B Historical Fire District Tax Rates (from FY 2004 -05 to FY 2013 -14) (in cents per $100 valuation) 'Revaluation Year BOLD and highlighted denotes tax rate increase