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Funding the Kent Fire Department RFA

Funding the Kent Fire Department RFA. Compliance with RCW 52.26.240 Using Taxes and Fire Benefit Charge. Kent Fire Authority FBC Funding System. Specified in RCW 52.26.240 Reduced tax levy + fire benefit charge. Assessed Value Source for Levy. FBC Data source. Use & Value. Structure Size.

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Funding the Kent Fire Department RFA

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  1. Funding the Kent Fire Department RFA Compliance with RCW 52.26.240 Using Taxes and Fire Benefit Charge RCW 52.26.230 Compliance Hearing

  2. Kent Fire AuthorityFBC Funding System Specified in RCW 52.26.240 Reduced tax levy + fire benefit charge RCW 52.26.230 Compliance Hearing

  3. Assessed Value Source for Levy RCW 52.26.230 Compliance Hearing

  4. FBC Data source Use & Value Structure Size RCW 52.26.230 Compliance Hearing

  5. FBC Basics • Benefit charge capped: • Cannot exceed 60% of “Operating” budget • 2012 Fire Benefit Charge was: • 39% of the Preliminary Operating Budget RCW 52.26.230 Compliance Hearing

  6. FBC Exemptions • Facilities used for religious worship or education • 100% exemption • Low income Seniors and Disabled • Same as tax exemptions (up to 75%) • Annual household income of $35,000 or less • Retired because of physical disability and have an income of $40,000 or less • Must qualify through King County 206-205-5759 • Agricultural uses • 75% exemption for those structures for the growing of crops/livestock • Vacant Land and structures less than 400 sq ft. RCW 52.26.230 Compliance Hearing

  7. Determining Annual FBC Amount • Calculated by: • Determining Expenses • Subtract revenue sources other than FBC • Balance equals FBC revenue needed • Add 1% for King County RCW 52.26.230 Compliance Hearing

  8. Apportionment of FBC • RCW 52.26.180 Benefit charges. • (2) A benefit charge imposed must be reasonably proportioned to the measurable benefits to property resulting from the services afforded by the authority. RCW 52.26.230 Compliance Hearing

  9. Apportionment of FBC • Categories Used to Apportion • Size of structure • As determined by King County Assessor • Category of structure • One and two family residential • Mobile homes • Multi-family homes • Commercial buildings • Response size needed • Firefighters needed • Risk of structure • Hazardous materials or uses • Discounts • Built in protection and alerting • FORMULA = • Square Root of Area X 18 X Category x Response x Risk x Discount

  10. Fire Ratings and Insurance CostsLeague of Minnesota Cities 2010 Ratings & Effect on Insurance Fire Service Savings Homes in Kent Fire service area 35,355 Value of rating to homes $1,072 – $670 = $402 $402 x 35,355 = $14,212,710 Kent = Fire Class 3 Covington = Fire Class 4/3 RCW 52.26.230 Compliance Hearing

  11. RCW 52.26.230 Compliance Hearing

  12. Value of Benefit of Fire Department • Direct Fire Insurance Benefit $22,740,247 • Estimated EMS Benefit $12,000,000 • Fire Prevention $Value Added • Fire Investigations $Value Added • Public Education $Value Added • Accredited Agency Status $Value Added • Cares Program $Value Added • Emergency/Disaster Services $Value Added • Technical Rescue Services $Value Added • Property & Life loss without FD $Value Added • Estimated Benefit $34,740,247 Plus RCW 52.26.230 Compliance Hearing

  13. Value of Benefit of Fire Department • Total Estimated Value of Benefit exceeds: $34,000,000 • Benefit exceeds cost of FBC by: $19,000,000 • Benefit covers 97% total 2011 Budget RCW 52.26.230 Compliance Hearing

  14. Establishing the FBC • FBC Considerations • Levy Revenues • Other Revenues • Capital Needs from Levy Revenues • Percentage of FBC to Operating Budget • Effect on taxpayer RCW 52.26.230 Compliance Hearing

  15. Levy Revenue Trend 2013 Tax from A/V $13,943,050 2011 Tax from A/V $15,515,718.00 2012 Tax from A/V $14,759,990 RCW 52.26.230 Compliance Hearing

  16. Levy Revenue Trend • 2011 Tax from A/V $15,515,718.00 • 2012 Tax from A/V $14,759,990.00 • 2013 Tax from A/V $13,943,050.00 Revenue 2011-2013 -($1,572,668.00) Overall Decrease of 11% from 2011 RCW 52.26.230 Compliance Hearing

  17. Other Revenue Trend RCW 52.26.230 Compliance Hearing

  18. Capital Trends • Preliminary proposal includes $512,000. • Current focus only on life cycle replacement of equipment. • No dedicated capital to accommodate future growth. • Mitigation Fees cover minimal capital • $150,000 collected last 3 years RCW 52.26.230 Compliance Hearing

  19. FBC Revenue Trend RCW 52.26.230 Compliance Hearing

  20. Proposed FBC RCW 52.26.230 Compliance Hearing

  21. FBC Basics • Benefit charge capped: • Cannot exceed 60% of “Operating” budget • 2013 Fire Benefit Charge is: • 42% of the Preliminary Operating Budget RCW 52.26.230 Compliance Hearing

  22. Ratio of FBC by Property Type • Residential (>35,000 properties) = 65% • Single Family Homes = 53% • Multi-Family = 12% • Commercial (1353 properties) = 35% Total Apportioned = 100% • 2011: 60% Res, 40% Com • 2012: 63% Res, 37% Com RCW 52.26.230 Compliance Hearing

  23. Effect of Current FBC Calculations RCW 52.26.230 Compliance Hearing

  24. Residential ComparablesTax + FBC RCW 52.26.230 Compliance Hearing

  25. Commercial ComparablesTax + FBC RCW 52.26.230 Compliance Hearing

  26. Apartment Comparables RCW 52.26.230 Compliance Hearing

  27. Questions RCW 52.26.230 Compliance Hearing

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