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HomeMy WebLinkAboutAgenda - 05-20-2021; Item 1 - FY 2021-22 Fire Districts’ Tax Rates 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 20, 2021 Action Agenda Item No. 1 SUBJECT: FY 2021-22 Fire Districts' Tax Rates DEPARTMENT: County Manager and Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: A. Fire Districts' Requests for FY2021- Bonnie Hammersley, (919) 245-2300 22 Travis Myren, (919) 245-2308 B. Historical Fire District Tax Rates Paul Laughton, (919) 245-2152 (from FY 2004-05 to FY 2021-22) Gary Donaldson, (919) 245-2453 PURPOSE: To review and discuss the FY 2021-22 fire districts' tax rates, including tax rate increases recommended for six (6) fire districts. BACKGROUND: During tonight's work session, Commissioners will have the opportunity to dialogue with six (6) fire districts, who requested tax rate increases for FY 2021-22. 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 these districts to tonight's virtual 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 2021-22, 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 2021-22 Manager Recommended Budget beginning on page 259. Attachment B reflects historical Fire District tax rates dating back to FY 2004-05. The Fire Districts requesting tax rate increases in FY 2021-22 are as follows: • Damascus Fire District and Southern Triangle Fire Service District (Page 260) — increasing from a revenue neutral tax rate of 10.10 cents to 10.80 cents per $100 valuation. The rate increase will be used to hire additional part-time staff, and to keep up with the growth demands of serving these two districts. This tax rate is consistent with the Chatham County tax rate. • Efland Fire District (Page 260) — increasing from a revenue neutral tax rate of 6.28 cents to 7.28 cents per $100 valuation. This rate increase will be used to expand current 2 part-time staff from two to three hours during the day, and cover additional debt service payments on a fire engine. • Little River Fire District (Page 261) — increasing from a revenue neutral tax rate of 5.39 cents to 6.39 cents per $100 valuation. This rate increase will be used for debt service payments on a new fire engine, and additional operating costs associated with the new Station 2. The district is also requesting $80,000 from their available fund balance to be used as a down payment on the new fire engine. • Orange Rural Fire District (Page 263) — increasing from a revenue neutral tax rate of 8.79 cents to 9.49 cents per $100 valuation. This rate increase will be used for debt service payments for their new Station. The district is also requesting $50,000 from their available fund balance to cover the replacement cost of fire suppression equipment. • White Cross Fire District (Page 263) — increasing from a revenue neutral tax rate of 11.34 cents to 12.34 cents per $100 valuation. This rate increase will be used to cover increased part-time personnel costs associated with increased hours, as well as debt service payments on a replacement fire engine. FINANCIAL IMPACT: Included in the Background Section above. SOCIAL JUSTICE IMPACT: There are no Orange County Social Justice Goal impacts associated with this item. ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal impacts associated with this item. RECOMMENDATION(S): The Manager recommends that the Board discuss the above mentioned fire districts' tax rate increases and provide direction to County staff, as appropriate. Fire Districts' Requests for FY 2021-22 3 Current Revenue Requested 2021- 2020-21 Tax Neutral Tax Requested 22 Tax Rate Requested Fund Balance 1 Cent 1/10 Cent District Tax Rate for Change from Fund Balance at June 30, Reasons for Districts'Requesting a Tax Rate Increase cents)Rate ) 2021-22 Rate for 2021-22 Revenue Neutral Equals Equals for 2021-22 2020 Rate Cedar Grove 8.10 7.63 7.63 0.00 $ 35,837 $ 3,584 $ $ 39,547 Chapel Hill 14.91 13.87 13.87 0.00 $ 19,590 $ 1,959 $ $ 19,552 Damascus 10.80 10.10 10.80 0.70 $ 10,989 $ 1,099 $ $ 33,472 To hire additional part-time staff,and to keep up with the growth demands of serving this district. To expand current part-time staff from two to three hours Efland 6.78 6.28 7.28 1.00 $ 87,576 $ 8,758 $ $ 111,011 during the day,and cover additional debt service payments on a fire engine. Eno 9.68 8.98 8.98 0.00 $ 94,979 $ 9,498 $ $ 352,005 For debt service payments on a new fire engine,and Little River 5.92 5.39 6.39 1.00 $ 54,627 $ 5,463 $ 80,000 $ 101,668 additional operating costs associated with their new Station 2. New Hope 10.67 10.12 10.12 0.00 $ 78,083 $ 7,808 $ - $ 121,383 Orange Grove 6.81 6.27 6.27 0.00 $ 95,597 $ 9,560 $ 85,000 $ 193,205 Orange Rural 9.48 8.79 9.49 0.70 $ 165,561 $ 16,556 $ 50,000 $ 208,826 For debt service payments for their new Station. South Orange 9.68 9.09 9.09 0.00 $ 65,302 $ 6,530 $ - $ 186,393 Southern Triangle 10.80 10.10 10.80 0.70 $ 25,860 $ 2,586 $ $ 164,347 To hire additional part-time staff,and to keep up with the growth demands of serving this district. To cover increased part-time personnel costs associated White Cross 12.37 11.34 12.34 1.00 $ 50,968 $ 5,097 $ $ 55,951 with increased hours,as well as debt service payments on a replacement fire engine. $ 1,587,360 4 Attachment B Historical Fire District Tax Rates (from FY 2004-05 to FY 2021-22) (in cents per$100 valuation) Orange T5.60 e South Southern Cedar Grove Chapel Hill Damascus Efland Eno Little River New Hoe Grove Orange Triangle White Cross 2004-05 7.30 2.00 3.00 4.65 6.40 5.20 6.50 3.90 9.20 3.00 4.80 2005-06* 7.30 1.90 2.60 3.475 5.70 4.60 6.25 3.40 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 5.00 4.225 5.70 4.60 6.75 3.90 5.60 9.50 5.00 5.00 2008-09 7.30 4.90 6.00 5.225 5.70 4.60 6.75 4.20 6.30 9.50 6.00 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 6.00 2010-11 7.36 7.50 5.00 4.66 5.99 4.06 6.95 3.58 6.36 7.85 5.00 6.00 2011-12 7.36 7.50 5.00 4.66 5.99 4.06 8.95 4.08 5.61 7.85 5.00 7.00 2012-13 7.36 7.50 5.00 4.66 5.99 4.06 8.95 5.00 5.61 7.85 5.00 7.00 2013-14 7.36 15.00 8.80 7.00 7.99 4.06 9.45 6.00 7.36 10.00 8.80 8.80 2014-15 7.36 15.00 8.80 7.00 7.99 4.06 9.95 6.00 7.36 10.00 8.80 11.00 2015-16 7.36 15.00 10.30 7.00 7.99 4.06 9.95 6.00 8.36 10.00 10.30 11.00 2016-17 7.36 15.00 10.30 7.00 7.99 4.06 10.45 7.00 8.36 10.00 10.30 11.00 2017-18* 8.10 14.91 10.30 6.78 8.68 4.92 9.94 6.81 9.15 9.68 10.30 11.37 2018-19 8.10 14.91 10.30 6.78 9.68 5.92 9.94 6.81 9.15 9.68 10.30 11.37 2019-20 8.10 14.91 10.80 6.78 9.68 5.92 9.94 6.81 9.15 9.68 10.80 12.37 2020-21 8.10 14.91 10.80 6.78 9.68 5.92 10.67 6.81 9.48 9.68 10.80 12.37 2021-22* Recommended 7.63 13.87 10.80 7.28 8.98 6.39 10.12 6.27 9.49 9.09 10.80 12.34 *Revaluation Year BOLD and highlighted denotes tax rate increase