How much rural district would pay to be determined
STERLING – Even if the maximum property tax rate is approved by voters, how much they’ll actually pay remains to be decided.
By state law, a fire protection district that wants a higher rate than 12.5 cents per $100 of EAV must set its maximum rate at 30 cents.
That doesn’t mean the district will levy that much. The rate changes every year depending on how much money it needs and where the equalized assessed property value is set.
The city wants the rural district to levy at least 28 cents, which would raise about $230,000 a year for the fire department.
City residents pay 29 cents per $100 of EAV.
The rural fire board is trying to determine “it’s fair share,” President Doug Happ said.
“We have not, as a board, made a decision on that number,” Happ said. “We’ve talked about it informally at the last meeting, and threw around some ideas, but we’re in a process of coming up with what we think is a fair share, and I think that’s what Sterling is looking for at this point.
“No one likes a tax increase, we understand that ... and we’re not saying we’re going from 12.5 to 30 cents. We see it going up a little bit, but we have not had formal negotiations with the city of Sterling.”
The board also might decide to phase in an increase over a few years, to help soften the blow to taxpayers, Happ said.
“We recognize the economy is not good,” Happ said. “At the same time, we have an obligation to provide the residents the best fire protection they can get for their dollar. We are still convinced that that is going with the city of Sterling at this time.”
Other options could include contracting with another fire department, starting its own fire department or dissolving the fire district.
The city and the rural fire board will be crafting a new fire protection contract, but negotiations won’t start until after the referendum. The current contract ends in June.
Since the district was formed in 1960, contacts have always been 10-year pacts. The next one might be only a 5-year contract, Happ said.
“The economy is a major concern. Some say the recession is over, some say it’s not. We just want to get a general feel for it ... What if the economy turns around? We may be back to the 12.5 cent rate or less.We have hopes of that.”
Happ thinks the tax hike request is justified.
“I think they’re looking for an increase in revenue from us to help offset their fire costs because we truly have not paid our fair share over the last 12 to 15 years.”
