HomeMy WebLinkAboutMINUTES - 01121993 - 2.A � I
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TO: BOARD OF SUPERVISORS o'. s Costa
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FROM: PHIL BATCHELOR County
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County Administrator
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DATE: January 12, 1993
SUBJECT: STATUS REPORT ON FIRE DISTRICT FUNDING ISSUES
Specific Request( s) or Recommendation( s) & Background & Justification
RECOMMENDATIONS:
Consider action to be taken regarding the following options for providing
funding for fire districts next fiscal year and beyond.
1. Implement the benefit assessment process by directing the fire districts
to provide reports requesting and supporting the establishment of
benefit assessments.
2. Special tax election ( fire flow tax) .
REASONS FOR RECOMMENDATION/BACKGROUND:
Because of State budget actions and the impoundment of $3 . 5 million from the
Special District Augmentation Fund (SDAF) , fire district budgets were reduced
by approximately 12% in 1992-1993 . This reduction followed a reduction of
22o in 1991-1992. The adopted budgets provided no money for capital
expenditures. Capital funding in 1991-1992 was limited to about $200,000
because of revenue shortages.
Although the budget reductions did not result in the layoff of employees, a
substantial portion of the reductions was accomplished by the elimination of
one-time capital funds. Even without further reductions by the State next
year, the reductions of 1992-1993 will require the elimination of employees
and the possible closure of fire stations.
Continued on Attachment: X YES Signature: �"�``"
Recommendation of County Administrator
Recommendation of Board Committee
Approve Other
Signature(s) :
Action of Board on: January 12_ 1994 Approved as Recommended-Other X
Mike Price, Local 1230; John Wolfe, Contra Costa Taxpayers Association; Roy Davis, 20 Zander
Drive, Orinda and Bill Gross, Orinda appeared and addressed the above issue. The Board
APPROVED recommendations of the County Administrator relating to establishment of a benefit
assessment process for funding fire protection districts, including text for the summary
report to accompany notice to taxpayers, and the amount of assessment proposed per District.
Vote of Supervisors: I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
X Unanimous (Absent ) AND ENTERED ON THE MINUTES OF THE
Ayes: Noes: ) BOARD OF SUPERVISORS ON DATE SHOWN.
Contact: Terry McGraw 646-4855 Attested:
Janua�l2, 19931993
cc: County Administrator Phil Batchelor, Clerk of
Auditor-Controller the Board of Supervisors
County Counsel and County Administrator
County and Indep. Fire Districts
United Professional By: , DEPUTY
Firefighters Local 1230
All indications are that the State will finish the "return to source" process
by taking the remainder of AB 8 funds with the resultant elimination of the
SDAF.
Regardless of the actual outcome of the various threats to fire district
funding next year and beyond, it seems clear that additional funding will be
needed to maintain fire service in this County. Accordingly, it is
recommended that a decision be made as to the method of providing replacement
revenue no later than January 19, 1993 in order to accommodate the time
schedule below.
The benefit assessment process involves notifying property owners as to the
amount of proposed assessment ( a form of mail ballot) . The property owners
have the right to file protests against the assessments. If the dollar value
of the protests is more than 5% of the total amount to be raised in a given
district, the Board cannot levy the assessment without holding an election.
If the protest level is over 5% but less than 50%, the Board may submit the
assessment to election. If an election is required, the assessment can be
approved by a simple majority vote.
In order to complete the benefit assessment process for implementation in
fiscal year 1993-1994, including allowance for any required elections, it is
necessary to begin the process immediately. Presented below is an outline of
the major dates in the process leading up to the June 8, 1993 election:
Legal Deadlines Date Event
1/12/93 Board of Supervisors directs districts to
file reports on 1/19/93
1/19/93 Board receives reports and fixes hearing date
1/22/93 Mail notices to property owners
45 days {
3/9/93 Hearing and adoption of benefit assessments
89 days {
6/8/93 Election-as required by protest level
The alternative to the benefit assessment process would be to submit a ballot
measure for the approval of a special tax. This would not involve the timing
concerns of the benefit assessment process but has the disadvantage of
requiring a two-thirds majority vote.
BRIEF SUMMARY OF REPORT ON PROPOSED ASSESSMENTS
The State of California is threatening to cut your fire protection.
The Governor' s proposed budget eliminates funding for more than
half of the fire service ' n this County. This is property tax
money you pay to protect your home. This money belongs here in the
County. Now it may be taken by the State and used for other
purposes.
If the State takes this money, we will either have to raise other
sources—of money or reduce your fire protection severely. If this
money is lost to the State, firefighters will be laid off and fire
stations will be closed. The only alternative the Board of
Supervisors has is to ask you to support a benefit assessment to
maintain your fire service.
State law permits the levying of an annual benefit assessment to
continue providing fire suppression services, including personnel,
equipment and facilities. This assessment can only be levied after
certain procedures are followed, including the holding of a public
hearing on the subject.
Under State law, the amount of the assessment must be related to
the relative fire risk represented by each type of property. For
example, a single family home would be assessed up to a maximum of
$ while heavy industry would be assessed up to a maximum of
The initial proposed assessment is for Fiscal Year 1993-94. In
subsequent fiscal years, the maximum base year ( 1993-94) assessment
may be increased annually `to reflect the change in population and
the change in the U. S. Consumer Price Index. Unless renewed, this
assessment will terminate in 1996. An° appeal process will be
provided for taxpayers to question their assigned fire risk
category used for assessment. Property owners that qualify for
utility lifeline rates may be eligible for an adjustment in their
fire risk assessment.
5 OAF
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