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from residents located in the northern portion of the district. This area includes the northeast <br />sections of Pleasant Green Road, St. Mary's Road and secondary roads that intersect with <br />these roads. According to the North Carolina Department of Insurance (NCDOI), property <br />located five road miles or less from a fire station is considered to be in a "Class 9" insurance <br />rate code for fire insurance premiums while property located more than five road miles from a <br />fire station is considered to be in a "Class 10" insurance rate code. A survey of insurance <br />companies indicates that ahomeowner/renter in a "Class 9" rate code might expect to pay <br />approximately 20 percent less in property insurance premiums than a resident located in a <br />"Class 10" rate code. The attached map outlines afive-road mile radius for both the existing fire <br />station as well as the proposed one. After the second fire station is constructed and equipped, <br />NCDOI will inspect and approve that station. Upon approval, that station will extend the <br />boundaries of the insurance district, which will place all of the residents of that area within the <br />five-mile insurance district. <br />Now that the Department has purchased land, the Board hopes to move forward with <br />constructing and equipping Eno Fire Department Station #2 over the next two to three years. <br />While plans are in the conceptual phase at this point, preliminary plans include construction of a <br />three or four bay station to house two vehicles. Due to the infancy of the plans, cost estimates <br />are not yet available. There is potential for the department to apply for Federal grants and low <br />interest Federal loans to offset some portion of the total cost of construction and equipment. <br />Upon completion of the new fire station, there will be a need to equip the new facility. NCDOI <br />requires a minimum of one pumper truck and one tanker per station. Eno currently has three <br />trucks in operation. Once the station is operational, the Department plans to purchase one <br />additional truck and equipment (approximate cost of $300,000) to bring the total available trucks <br />to four and locate two vehicles at each station. Again, there is potential for the Department to <br />apply for grants and loans to offset costs of the equipment purchase. As the Department moves <br />forward with purchasing equipment, County staff, to the extent practicable, will. offer assistance <br />in the bid and procurement process. <br />It is clear that, in order to construct and equip the new station, the Board of Directors foresees a <br />future tax rate increase for property owners in the District. Due to the fact that plans are <br />conceptual at this point, it is difficult to anticipate what that increase may be. As additional <br />information becomes available and plans more concrete, staff will update the Board. <br />FINANCIAL IMPACT: Financial impacts are included in the background information above. <br />RECOMMENDATION (S): The Manager recommends that the Board of County Commissioners <br />appropriate $32,621 in County held fund balance for the Eno Fire Department. <br />