Statesboro City Council members voted Wednesday to send a letter to Bulloch County requesting a renegotiation of the fire services contract. City officials believe the existing agreement is no longer sufficient to pay for the level of service provided to residents living within five miles of the city limits.
The existing service contract was originally signed in the mid-1980s. It provides that the county pay 25 percent of the city’s fire budget in exchange for fire suppression services for areas in the county within five miles of a fire station.
City Manager George Wood believes current circumstances dictate a new look at the terms of the contract.
“[The terms] may have been appropriate back then, but two things have happened that have fundamentally changed that,” Wood said.
He said there has been tremendous growth just outside the city limits. Also, the city added the Fair Road fire station in 2000.
Wood said, “That has added significantly to the amount of property that the city’s fire department is defending from fire.”
The unincorporated fire district covers all property outside the city that is within five miles of a fire station. County citizens in the district pay an additional ad valorem tax of 1.4 mills. City officials want to increase next year's rate to 1.9 mills. This would increase the tax on a given property by $20 per $100,000 in assessed value.
Bulloch County Manager Tom Couch said he'd like to gather more information before he makes a recommendation to county commissioners, who will make the final decision.
"We were never given the opportunity to review data or offer a counter proposal. That’s what we’re doing now," Couch said. "We’d like to bring everybody together and sort out the information and from there I believe we can come out with an amenable solution."
In the last 24 months, according to data gathered by Fire Chief Dennis Merrifield, there were 180 structure fires. 84 of those were in the city limits, 56 within the fire district and another 46 outside the district's radius. This did not include general service calls.
According to a memo by George Wood to city council members, only 57 percent of the real property covered by the Statesboro Fire Department is located within the city limits. This means 43 percent of the real property covered, based upon property value assessments, is outside city limits. As such, Wood believes the county should bear 43 percent of the cost.
Couch agrees with the assessment that there is a disparity, but cautioned against rushing to a conclusion.
"Bottom line, I believe that there is an inequity, too," said Couch. "But's hard to sustain a 100-percent jump in costs, especially with the recent tax increase. We'd like to bring all this infomation together so we have more of an objective basis for talking about the allocation of funds."
County commissioners recently passed a millage rate increase.
Fire district residents pay the added taxes for a faster response time and a higher level of service than offered by rural fire districts. In return, property owners in the district receive lower insurance rates.
Wood said a survey of three local insurance carriers completed by the city bears this out.
The city contacted three local insurance carriers about insurance rates. They quoted an 1,800-square-foot home, valued at $155,000, with a $500 deductible and $100,000 in liability coverage. They also used Statesboro's current rating of ISO Class 3.
ISO stands for Insurance Services Office. They evaluate fire-protection efforts in communities across the country and insurance companies use their information — and ratings — to set fair premiums for fire insurance. The lowest rating is 9 and the highest is 1. Areas have different ratings depending upon their access to fire services.
For a home with an ISO Class 3 rating, the average quote was $425. In an ISO Class 7 area, like Register, the average was $544. And for areas with an ISO Class 9 rating, the average quote was $753.
The proposed increase in millage from 1.4 to 1.9 would add a little more than $30 in annual tax to the same $155,000 house.
Wood summed it up in his memo.
"The Fire District Tax would still be more than offset by the savings on the homeowner's insurance program. I think you will agree, Fire District property owners still would be getting a very good deal."
Phil Boyum may be reached at 489-9454.
The existing service contract was originally signed in the mid-1980s. It provides that the county pay 25 percent of the city’s fire budget in exchange for fire suppression services for areas in the county within five miles of a fire station.
City Manager George Wood believes current circumstances dictate a new look at the terms of the contract.
“[The terms] may have been appropriate back then, but two things have happened that have fundamentally changed that,” Wood said.
He said there has been tremendous growth just outside the city limits. Also, the city added the Fair Road fire station in 2000.
Wood said, “That has added significantly to the amount of property that the city’s fire department is defending from fire.”
The unincorporated fire district covers all property outside the city that is within five miles of a fire station. County citizens in the district pay an additional ad valorem tax of 1.4 mills. City officials want to increase next year's rate to 1.9 mills. This would increase the tax on a given property by $20 per $100,000 in assessed value.
Bulloch County Manager Tom Couch said he'd like to gather more information before he makes a recommendation to county commissioners, who will make the final decision.
"We were never given the opportunity to review data or offer a counter proposal. That’s what we’re doing now," Couch said. "We’d like to bring everybody together and sort out the information and from there I believe we can come out with an amenable solution."
In the last 24 months, according to data gathered by Fire Chief Dennis Merrifield, there were 180 structure fires. 84 of those were in the city limits, 56 within the fire district and another 46 outside the district's radius. This did not include general service calls.
According to a memo by George Wood to city council members, only 57 percent of the real property covered by the Statesboro Fire Department is located within the city limits. This means 43 percent of the real property covered, based upon property value assessments, is outside city limits. As such, Wood believes the county should bear 43 percent of the cost.
Couch agrees with the assessment that there is a disparity, but cautioned against rushing to a conclusion.
"Bottom line, I believe that there is an inequity, too," said Couch. "But's hard to sustain a 100-percent jump in costs, especially with the recent tax increase. We'd like to bring all this infomation together so we have more of an objective basis for talking about the allocation of funds."
County commissioners recently passed a millage rate increase.
Fire district residents pay the added taxes for a faster response time and a higher level of service than offered by rural fire districts. In return, property owners in the district receive lower insurance rates.
Wood said a survey of three local insurance carriers completed by the city bears this out.
The city contacted three local insurance carriers about insurance rates. They quoted an 1,800-square-foot home, valued at $155,000, with a $500 deductible and $100,000 in liability coverage. They also used Statesboro's current rating of ISO Class 3.
ISO stands for Insurance Services Office. They evaluate fire-protection efforts in communities across the country and insurance companies use their information — and ratings — to set fair premiums for fire insurance. The lowest rating is 9 and the highest is 1. Areas have different ratings depending upon their access to fire services.
For a home with an ISO Class 3 rating, the average quote was $425. In an ISO Class 7 area, like Register, the average was $544. And for areas with an ISO Class 9 rating, the average quote was $753.
The proposed increase in millage from 1.4 to 1.9 would add a little more than $30 in annual tax to the same $155,000 house.
Wood summed it up in his memo.
"The Fire District Tax would still be more than offset by the savings on the homeowner's insurance program. I think you will agree, Fire District property owners still would be getting a very good deal."
Phil Boyum may be reached at 489-9454.