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Commissioner Halkiotis asked for an explanation of the letter that Rod Visser <br />wrote to the New Hope Fire District. <br />Rod Visser said that the New Hope Fire District requested an increase in their tax <br />rate from 5.15 to 6 cents, which would increase the revenue from $174,000 to over $200,000. <br />The County wanted to see if they could increase the revenue without raising the tax rate. This <br />letter asked several questions and New Hope responded. <br />John Link said that County staff previously asked for this information from New <br />Hope and it has been late in coming. He thinks that they have sufficient funds to carry out their <br />responsibilities without raising the tax rate. He asked that a representative explain the <br />reasoning behind the tax increase. <br />Cliff Carroll, President of the New Hope Fire Department Board of Trustees, was <br />invited to the front to respond to questions from the County Commissioners. He apologized for <br />being late in getting the information to the County. He went over the questions in the letter from <br />Rod Visser as included in the packet. <br />1) Personnel Budget Increase -The New Hope Fire Department has increased their <br />staffing by one hour a week because their volunteers were leaving for work at 7:00 <br />a.m. and they needed coverage from 7:00 a.m. to 8:00 a.m. Also, their benefits <br />package increased by approximately $5,000. <br />2) 16% Increase in Operating Funds - The New Hope Fire Department is sending their <br />staff to some weekend schools. They have had an influx of new members and have <br />had to supplement their weekly training times. Also, their bookkeeping has almost <br />doubled because of the paperwork for the paid personnel. They have also had to <br />pay for some preventative maintenance on their equipment. <br />3) $3,000 for First Responder Equipment - This item has been in the budget for the last <br />three years. Emergency Management does replenish their supplies, but there are <br />startup costs involved, which are not covered. <br />4) $400,000 Debt Arrangement - This debt arrangement is a ten-year note. <br />5) $10,000 Increase in Debt Service Payments - Their estimate is between $385,000- <br />$400,000 for the loan. They have a commitment for a 4.8% rate, which comes to an <br />annual payment of $49,702.76. <br />6) New Truck - The equipment the department is buying is not a replacement for the <br />brush truck. <br />7) $15,000 Capital Reserve Fund - The New Hope Fire Department feels that they still <br />need to keep the capital reserve fund of $15,000. In the past, this reserve has <br />enabled them to buy new equipment and pay for building additions. <br />8) Fund Balance - The New Hope Fire Department was hoping to use the available <br />fund balance of approximately $11,000 for some needed upgrades on one of the <br />trucks. <br />Cliff Carroll said that they need enough funds to operate efficiently. <br />Commissioner Halkiotis suggested that the fire districts have separate budget <br />meetings with the Manager. He said that there were communication issues. <br />John Link said that next year for any fire district which requests a tax increase, <br />he will meet personally with them and ask them the same questions that he asks of County <br />departments. <br />Commissioner Halkiotis said that he appreciates the work that the volunteers and <br />staff do for the fire departments, but he thinks these budget issues need to be discussed further. <br />Chair Gordon asked for the staff recommendation for the New Hope Fire District. <br />John Link said that if the Board is in agreement, the tax rate could be increased <br />less the fund balance.