Minutes 11-13-2012 - Laserfiche WebLink

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double or triple rates or cannot get insurance at all. The goal was to solve this for the 112 property owners and eliminate the two donut holes in gray. Attachment A is a map of the existing South Orange Fire Insurance District. Due to the Town of Chapel Hill annexations, the South Orange Fire Insurance District has been split. The Town of Carrboro provides fire protection in the South Orange Fire Insurance District and now has to travel through the Town of Chapel Hill to respond to a fire call off Mt. Carmel Church Road. Attachment B shows a detail map of the area and Chapel Hill Fire Station # 5 that is less than one (1) mile from the area outlined in gray. The Town of Chapel Hill is better positioned and willing to provide fire protections for this area in gray. The Town staff is prepared to make that recommendation to the Chapel Hill Town Council. This issue has also been discussed with the Town Manager for the Town of Carrboro. The Town Manager is prepared to recommend to the Carrboro Board of Aldermen that the Town provide fire protection to the proposed new Fire Insurance District (see Attachment C) if the tax rate is adjusted to be revenue neutral for the Town. The area in gray on Attachment B represents 100 parcels and $36,003,769 of real property value. When vehicles and personal property values are added to the real property total, an estimated $37,673,414 of taxable value would be removed from the existing South Orange Fire Insurance District. Attachment D shows the existing property valuation of $556,977,528 for the South Orange Fire Insurance District, the reduction of$37,673,414 of taxable value, and the remaining property valuation of$519,304,114. The estimated tax valuation reduction from the existing South Orange Fire Insurance District equals 6.8% of the total. A fire district tax increase from 7.85 cents to 10 cents would be required to insure that this change is revenue neutral for the Town of Carrboro. This would raise about $75,000 more for the district and the Town of Carrboro. North Chatham Fire Service District Orange County had received a letter from North Chatham Volunteer Fire Department (Attachment E) indicating that the Department will charge a tax rate of 8.8 cents beginning July 1, 2013. This is the same rate currently charged in Chatham County and a 76% increase over the existing 5 cents. Attachment F is a map of the existing North Chatham Fire Insurance District. Included on Attachment B, in yellow, are 112 homeowners located more than six (6) road miles from the nearest North Chatham Station, but less than three (3) road miles from Chapel Hill Fire Station #5. These homeowners have an insurance rating of 10 (see Attachment G for an example of insurance premiums related to fire insurance ratings). Several homeowners in this area have indicated that they cannot get fire insurance or that the rate has doubled. The only logical Fire Department that could provide fire protection for this area is the Town of Chapel Hill. The Town of Chapel Hill is a municipal fire department which relies on hydrants as its water source to fight fires. The Town of Chapel Hill is better positioned and willing to provide fire protections for this area. Discussions have occurred involving the Town of Chapel Hill Fire Chief and North Chatham Fire Department Chief concerning possible fire and insurance solutions for this area. Attachment H is a map of the existing Greater Chapel Hill Fire Insurance District. Attachment I is a map of the proposed new Greater Chapel Hill Fire Insurance District that includes not only the area proposed to be deleted from South Orange, but also the 112 homeowners from Attachment B and additional properties included in the Southern Triangle Fire District that have hydrants.