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HomeMy WebLinkAboutAgenda - 06-10-2014 - 2ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 10, 2014 Action Agenda Item No. 2 SUBJECT: FY 2014 -15 Fire Districts' Tax Rates DEPARTMENT: County Manager and Financial PUBLIC HEARING: (Y /N) No Services ATTACHMENT(S): A. Fire Districts' Requests for FY2014- 15 B. Historical Fire District Tax Rates (from FY 2004 -05 to FY 2014 -15) INFORMATION CONTACT: Michael Talbert, County Manager (919) 245 -2308 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 2014 -15 fire districts' tax rates. BACKGROUND: During tonight's work session, Commissioners will have the opportunity to dialogue with two (2) fire districts who have requested a tax rate increase for FY 2014 -15. 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 New Hope and White Cross Fire 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 and /or fire service districts in Orange County for FY 2014 -15, 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 2014 -15 Manager Recommended Budget beginning on page 299. K Attachment 2 reflects historical Fire District tax rates dating back to FY 2004 -05. The Fire Districts requesting tax rate increases in FY 2014 -15 are as follows: • New Hope Fire District (Page 302) — increase of .50 cents, going from 9.45 cents to 9.95 cents per $100 assessed valuation. This increase will generate an additional $28,297 in revenue for the district. The increase is needed to cover operational cost increases for professional services, increased personnel related expenses, needed maintenance for both fire stations, increased costs for vehicle maintenance, and an increase in funding of capital reserves for future apparatus replacement. • White Cross Fire District (Pages 303 -304) — increase of 2.20 cents, going from 8.80 cents to 11.00 cents per $100 assessed valuation. This increase will generate an additional $81,371 in revenue for the district. The increase is due to adding 2,080 hours of paid staff coverage, complete outfitting a service company truck, increase advanced technical rescue training opportunities, cover increased costs of maintenance and replacement of equipment (radios, self- contained breathing apparatus, turnout gear, and fire hoses), cover the increase in costs for the main station renovation and expansion project, and to allow the rebuilding of their capital reserves. FINANCIAL IMPACT: Included in the Background Section above. RECOMMENDATION(S): The Manager recommends that the Board discuss the two (2) Fire Districts' tax rate increases and give direction to county staff, as appropriate. Fire Districts' Requests for FY 2014 -15 Attachment A $ 525,036 Current Requested Requested Requested Fund Balance District 2013 -14 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 2014 -15 Change Equals Equals for 2014 -15 2013 cents) 2014 -15 Cedar Grove 7.36 7.36 0.00 $ 27,637 $ 2,764 $ $ 18,774 Chapel Hill 15.00 15.00 0.00 $ 18,145 $ 1,815 $ 2,002 Damascus 8.80 8.80 0.00 $ 9,407 $ 941 $ $ 10,638 Efland 7.00 7.00 0.00 $ 67,672 $ 6,767 $ $ 13,802 Eno 7.99 7.99 0.00 $ 71,215 $ 7,122 $ $ 103,325 Little River 4.06 4.06 0.00 $ 41,983 $ 4,198 $ $ 35,700 The increase is due to increases in operational costs for professional services; increased personnel expenses (pay raises to 3 Captain positions to bring up to competitive New Hope 9.45 9.95 0.50 $ 56,593 $ 5,659 $ $ 57,039 market rate, set aside of vacation benefit funds); needed maintenance for both fire stations and increased costs for vehicle maintenance; and an increase in capital reserves set aside for future apparatus replacement of an aging fleet. Orange Grove 6.00 6.00 0.00 $ 75,449 $ 7,545 $ $ 22,912 Orange Rural 7.36 7.36 0.00 $ 127,406 $ 12,741 $ 86,972 South Orange 10.00 10.00 0.00 $ 51,050 $ 5,105 $ $ 69,156 Southern Triangle 8.80 8.80 0.00 $ 19,473 $ 1,947 $ $ 85,264 The increase is due to an additional 2,080 hours of paid staff; complete outfitting a service company truck; increased advanced technical rescue training; increased White Cross 8.80 11.00 2.20 $ 36,987 $ 3,699 $ $ 19,452 maintenance and replacement of equipment (radios, repeaters, SCBA's, turnout gear, fire hose); increased utility costs; an increase in payment costs for the main station renovation and expansion project; and rebuild capital reserves. $ 525,036 Attachment B Historical Fire District Tax Rates (from FY 2004 -05 to FY 2014 -15) (in cents per $100 valuation) 'Revaluation Year BOLD and highlighted denotes tax rate increase