Commissioners question fire tax increases during work session

Published 12:10 am Friday, May 29, 2015

By Josh Bergeron

josh.bergeron@salisburypost.com

The Rowan County Board of Commissioners during a Thursday budget work session focused most of its attention on requested property tax increases in fire protection districts, calling some proposed rates excessive and others not enough to fill a budget gap.

Across Rowan County 16 volunteer fire protection districts have requested a tax increase for the upcoming fiscal year, which starts July 1. Of the proposed increases, 12 are connected to a decline in revenue as a result of revaluation, which occurs every four years. Four fire protection districts — Bostian Heights, Atwell, Locke and Ellis Cross Country —  saw an increase in property value with revaluation and are requesting an increase in property taxes.

Reasons cited by fire chiefs for tax increases vary. Some look to purchase new equipment or fire trucks. Others look to save money for a new or upgraded fire station. Adding more part-time or full-time staff is another reason cited by fire chiefs for a tax rate hike. Bostian Heights Fire Chief Mike Zimmerman has said property tax value, even with an increase this year, are just beginning to creep back to pre-recession levels in his district.

During Thursday’s budget work session, however, commissioners were skeptical of the rate hikes. Commissioners also questioned whether some departments would receive enough tax revenue in the upcoming fiscal year.

“I appreciate everything these people do, but at the same time you’ve got to look at the tax rate and evaluate whether what they’re asking is fair,” said Commissioner Craig Pierce. “Some of them I don’t think have asked for enough. Some of them I think are asking for the moon and the stars.”

Volunteer fire departments across Rowan County often directly correspond with a fire protection district. Volunteer fire departments are independent of county government, but commissioners have authority to approve or deny proposed tax rates.

Among the fire protection districts criticized by commissioners for proposing a hefty tax hike were Bostian Heights, Locke and Cleveland Community. The three departments represent three of the top four proposed increases for the coming fiscal year. Cleveland Community and Locke would be tied for the highest tax rates of any fire protection district, excluding municipalities,  at 9.5 cents per $100 if the increase is approved by commissioners. Bostian Heights would be tied for third at 9 cents per $100.

“If you’re going from 6 to 9 cents, that’s a 50 percent increase,” Pierce said. “And I have to ask myself, what have you been doing in the past years if that’s the case.”

Commissioners Vice Chairman Jim Greene said tax increases can lead to improved fire ratings and insurance savings, but didn’t agree with some of the proposed increases.

“Nine cents is just not acceptable,” Greene said. “I would like to see something like a referendum before we start these increases up to 9 cents. What’s it going to be next year? Another 1.5 cents? It’s just going up.”

Pierce questioned whether commissioners should set a flat tax rate for all fire protection districts and volunteer fire departments at 7 cents per $100. His proposed rate is lower than one department’s current rate. It’s lower than several rates proposed for the coming fiscal year. Commissioner Mike Caskey took issue with several comments made during the discussion on volunteer fire departments, including the tax rate cap.

“The value of the assets in each service area are not going to be the same,” Caskey said. “You still have to have a truck, and the truck is going to cost the same amount no matter where the truck is at.”

If departments were going to increase rates to hire full-time firefighters, Pierce said, commissioners should discuss creating a county-wide fire department. Volunteer fire departments that cover rural fire protection districts weren’t intended to have full-time staff, he said.

“If there’s where they want to get, we need to have a whole different conversation,” Pierce said about volunteer fire departments hiring full-time staff.

Caskey responded, saying that many volunteer firefighters have other jobs that aren’t located near their fire station, which makes responding to daytime calls difficult. Hiring part-time or full-time staff is one solution, he said.

During discussion about fire district tax rates, Commissioner Judy Klusman asked if commissioners were meddling in the affairs of fire protection districts and volunteer fire departments. Greene and Pierce both responded that it was commissioners’ job to set the tax rates for departments.

Commissioners also considered why some departments projected to lose money after revalution didn’t request an increase for the coming fiscal year. Included in the budget were figures that would allow each department to remain revenue neutral – operate with the same amount of tax dollars as the prior year. With the currently proposed rates, seven departments would receive less tax revenue in the 2016 fiscal year than the current year.

Some increases to bring departments to revenue neutral rates are less than one cent. Commissioners Chairman Greg Edds suggested speaking with each fire department to discuss the possibility of raising rates to become revenue neutral.

In other business from Thursday’s budget work session:

• Commissioners mentioned a total of $120,000 in additions to the budget, according to County Manager Aaron Church

Additions included purchasing software for the Rowan County Animal Shelter, changing the classifications of two deputies in the sheriff’s office and providing money to East Spencer to help with projects at Royal Giants Park.

Commissioners didn’t take any action on the budget, which proposes a tax rate of 66.25 cents per $100. The tax rate is classified as revenue neutral, but is an increase of 1.25 cents per $100.

The county will hold a public hearing on the budget immediately following its Monday meeting.

• Commissioners extensively discussed the allocation for the Rowan-Salisbury School System, but didn’t suggest any changes or take any action.

Commissioners said Rowan County funds its school system relatively well in comparison to other counties.

Pierce said many counties with a high per-pupil funding amount are considered tourism destinations. On the coast, for example, Pierce said property value may be high, but only a small number of the total population at any given time has children in the public school system.

In Church’s proposed budget, the Rowan-Salisbury School System would receive $35.44 million in total funding. The amount is significantly smaller than the $44.41 million requested by the school system. The amount proposed in Church’s budget is $1.32 million greater than the current year’s budget.

• Edds mentioned the possibility of the county hiring a full-time grant writer

• Pierce asked the county to look at ways to secure grant funding for body cameras to be used by sheriff’s deputies