Agenda - 01-24-2013-13 (5) - Laserfiche WebLink

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9 Department and enjoy a reduction in insurance premium rates. The Town would advise Orange County of the tax rate necessary to cover our costs equivalent to the costs our residents currently pay. The County would collect the fire tax on the Town's behalf. The Chapel Hill Fire Department can reasonably provide this protection without any immediate budgetary impact. Depending upon other future growth or density in the vicinity of Fire Station 45 this neighborhood could contribute to overall response needs in the area that cumulatively has the potential for additional resource needs. The primary response for this neighborhood would come from station #5 (US 15 -501 and Bennett Road) with backup from station #2 (Hamilton Road) and station #1 (MLK Jr. Blvd and Columbia). Mutual aid would be received from North Chatham VFD. Although this area is already covered with OWASA fire hydrants there is a need to install three additional hydrants to improve distribution and access. In order for this issue to be resolved by the beginning of FY 2013 -14 it is necessary to make a determination as soon as possible. Any solution will require Town of North Chatham VFD, Town of Chapel Hill, Orange County and the NC State Fire Marshal's Office approval. There would also need to be time to change dispatching data in the Orange 911 Communications Center for this area. FISCAL IMPACT Currently the Chapel Hill Fire Department responds to the neighborhood in question as a first response agency on mutual aid. Therefore, the addition of the service area does not initially create any additional workload or service demand. The additional workload would be represented in the form of fire cause investigations, hazard investigations and public education opportunities. The demand for these services in unknown at this time, but we believe they can be absorbed in our current task assignments in the near -term. Annexation of this area would increase the tax base of the Town approximately $193,226,284, and generate recurring property tax revenue in the amount of $954,537.84. Additionally, the Town would benefit from increased sales tax revenue, Powell Bill funds and other population based revenues. If we were to accept the County's request for a service agreement we would recommend the setting of a Fire District Tax rate of 15 cent. This rate is estimated to be equivalent to the rate incurred by Town residents for municipal fire protection, which is incorporated into the property taxes paid to the Town. Approximately 12 cents would be needed to cover the operating expense of the fire department, and the remaining 3 cents applied to long -term capital expenses (facilities, equipment, etc.) This would generate approximately $289,839.43 per year in additional fire tax revenue for the Town of Chapel Hill.