Bayshore Fire hopes to install assessment
The Bayshore Fire District is about ready to join a long list of agencies that are ready to eschew ad valorem tax methodology for a fire assessment.
Voters on June 24 will have the opportunity to vote on whether to allow the district to implement a fire assessment that could drastically increase the amount residents pay for fire services, especially for those with lower-value properties.
But the alternative, the status quo, would perhaps be even costlier, said the fire chief.
Fire Chief Larry Nisbet said Bayshore, which has 14 full-time workers and 29 volunteers and responds to between 800 and 1,000 calls annually, needs the assessment to allow it to serve the residents at the level to which they are accustomed.
“We currently have four full-time firefighters per day. Without this, we’ll have to cut to two full-time firefighters a day, which will affect our operation,” Nisbet said. “We’re not budgeting station costs or maintenance, so, like other departments, we’re looking at alternative funding mechanisms.”
Currently, the department has an annual budget of $1.5 million, of which 67 percent is funded with property taxes (assessed at $3.50 per $1,000 in taxable value), with the rest coming from grants and reserves.
Those grants will be running out in September, and the reserves are nearly depleted.
And with property values down nearly 43 percent from 2008, it has meant the budget has been reduced equally, not the way to run any fire district, Nisbet said, adding that even if property values go back up, homestead exemptions would limit tax increases to 3 percent.
A fee-based system, Nesbit said, would distribute costs amongst all properties, including the tax-exempt, stabilize revenues and ensure future growth of the department.
After some debate by the fire board, it settled on the historical demand methodology, in which the department went back two years to see where most of the calls for service were.
Most calls (74 percent) were residential, which is where the bulk of the tax will be levied, at a fixed cost per dwelling at $587.78 annually, regardless of the value of the property, just like garbage collection is.
Commercial land would be assessed at 51 cents per square foot, institutional properties (churches, etc) at $1.26, and industrial warehouse at five cents.
Vacant and agricultural land will be assessed at $63.97 per acres, capped at 10 acres.
“We considered a split system, a little of ad valorem and a little bit of assessment, but that wouldn’t have been an effective measure,” Nisbet said. “The board’s thought of going straight assessment was a great idea.”
This methodology could create controversy, as those in poorer sections will pay sharply higher rates while owners of properties with high valuations will see their rates drop. Nesbit admitted there would be winners and losers.
“I have a community group concerned about it, but also have them who are supportive. It evens the playing field,” Nisbet said. “Everyone is using the same fire truck and equipment, no matter where we go.”
Nesbit said maintaining the status quo would result in six full-time firefighters being laid off effective Sept. 14, with daily staffing at two firefighters per day.
Nesbit said this would mean he couldn’t send anyone into a burning building until more help arrived, which could mean more damage to the property and could result in higher insurance premiums for residents as this would create a sharp increase in the department’s ISO rating.
The Fire Commissioners board has set a town hall meeting for the fire assessment for Tuesday, May 27, at 7 p.m. at the fire station at 17350 Nalle Road.