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HomeMy WebLinkAboutAgenda - 06-08-2017 - 1. FY 2017-18 Fire Districts’ Tax Rates ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 8, 2017 Action Agenda Item No. 1 SUBJECT: FY 2017-18 Fire Districts' Tax Rates DEPARTMENT: County Manager and Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: A. Fire Districts' Requests for FY2017- Bonnie Hammersley, (919) 245-2300 18 Travis Myren, (919) 245-2308 B. Historical Fire District Tax Rates Paul Laughton, (919) 245-2152 (from FY 2004-05 to FY 2017-18) Gary Donaldson, (919) 245-2453 PURPOSE: To review and discuss the FY 2017-18 fire districts' tax rates, including tax rate increases recommended for seven (7) fire districts. BACKGROUND: During tonight's work session, Commissioners will have the opportunity to dialogue with Cedar Grove, Damascus, Eno, Little River, Orange Rural, Southern Triangle, and White Cross fire districts who have requested a tax rate increase for FY 2017-18. 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 departments listed above to tonight's work session to answer any questions and/or provide additional information to the Board regarding their increase. Attachment A provides information regarding tax rate requests from all twelve (12) fire districts and/or fire service districts in Orange County for FY 2017-18, 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 2017-18 Manager Recommended Budget beginning on page 355. Attachment B reflects historical Fire District tax rates dating back to FY 2004-05. The Fire Districts requesting tax rate increases in FY 2017-18 are as follows: • Cedar Grove Fire District (Page 356) - increase of 1.00 cents, going from a revenue neutral tax rate of 7.10 cents to 8.10 cents, for FY 2017-18. The existing tax rate is 7.36 cents. This rate increase will be used to help cover the replacement costs of a fire engine at Station #2. • Damascus Fire District (Page 356) - increase of .09 cents, going from a revenue neutral tax rate of 10.21 cents to 10.30 cents, for FY 2017-18. The existing tax rate is 10.30 cents. This tax rate increase is consistent with the Chatham County tax rate. • Eno Fire District (page 357) - increase of 1.00 cents, going from a revenue neutral tax rate of 7.68 cents to 8.68 cents, for FY 2017-18. The existing tax rate is 7.99 cents. This rate increase will be used to help cover the replacement costs of a 23 year old tanker, and the completion of the renovations at Station #1, including a garage building, which houses additional fire units and equipment. • Little River Fire District (Pages 357-358) - increase of 1.00 cents, going from a revenue neutral tax rate of 3.92 cents to 4.92 cents, for FY 2017-18. The existing tax rate is 4.06 cents. This rate increase will be used to move forward in purchasing land and construction of a Station #2 and to help cover the cost of purchasing a new fire engine. • Orange Rural Fire District (Page 359) - increase of 1.00 cents, going from a revenue neutral tax rate of 8.15 cents to 9.15 cents, for FY 2017-18. The existing tax rate is 8.36 cents. This rate increase will be used to add personnel and cover increases in insurance costs, including worker's compensation, automobile, and health. • Southern Triangle Fire Service District (Page 360) - increase of .34 cents, going from a revenue neutral tax rate of 9.96 cents to 10.30 cents, for FY 2017-18. The existing tax rate is 10.30 cents. This tax rate increase is consistent with the Chatham County tax rate. • White Cross Fire District (Page 360) - increase of 1.00 cents, going from a revenue neutral tax rate of 10.37 cents to 11.37 cents, for FY 2017-18. The existing tax rate is 11.00 cents. This tax rate increase will be used to help offset the cost of replacement of a 30 year old pumper/tanker, equipment replacement, increased member training, and continue their capital outlay program. FINANCIAL IMPACT: Included in the Background Section above. SOCIAL JUSTICE IMPACT: There are no Social Justice Goal impacts associated with this item. RECOMMENDATION(S): The Manager recommends that the Board discuss the above mentioned fire districts' tax rate increases and give direction to county staff, as appropriate.