Q & A: Levy Lid-lift Proposal

How does the fire department receive its funding?
Your fire department receives its funding from two primary sources: the property tax levy and the benefit charge. The benefit charge and the levy assessment combined traditionally average $1.50 per $1,000 of assessed valuation. This is the limit allowed fire districts which operate with only a levy assessment. The voters approval of the benefit charge every six years, provides the district with stable funding.

What is the advantage of having the two sources of revenue?
The benefit from two sources of revenue has allowed the district to purchase new equipment as needed. It allows the district to establish reserves for major expenses, without resorting to bond issues. The District has no long-term debt, and makes no bond interest payments saving the taxpayers money.

Why is a levy-lift election needed?
The last time the district made such a request was in 1985. The larger portion of the income for operation of the fire district comes from the property tax based on the combined assessed value of the land and the improvements on it. Most of the remainder comes from the benefit charge. I-647 has limited the growth of the property tax to 1% a year. This has limited growth of our income from the property tax to a rate below inflation and particularly below the rate of growth of value of real property in the district. We have had to rely on the benefit charge to make up for the loss of tax revenue.

The district's historical share of the levy tax has been one dollar per thousand of assessed valuation. The tax limitations have now reduced the authorized one dollar per thousand to under 80 cents per thousand. By law, the benefit charge can make up not more than 60% of the district's budget. We are approaching that limit and must now ask the voters to readjust the ratio between property tax levy and the benefit charge.

How will the levy lid-lift impact my taxes?
This in not an increase in the taxation rate. The District will receive its funding at the same rate as before. In the aggregate, for the whole district, as the levy rate returns to one dollar per thousand the benefit charge will be reduced by the same amount. Only the ratio between the two sources will change.

What happens if it doesn't pass?
In the long term, without an adjustment to the levy rate there may need to be reductions in service due to lack of sufficient funds to operate a full service fire department. In the short term, as the levy rate for the fire district decreases, the benefit charge can be used to make up the difference. The law requires that no more than 60% of our operation can be funded via the benefit charge. The District is nearing that 60% limit, so it is time to readjust the ratio.

Please vote, Tuesday, May 18