MEASURE NO. 24-192 - mp3

Marion County Fire District #1

Referred to the People by the District Board

Five-Year Operations Local Option Tax

Question: Shall Marion County Fire District No. 1 impose $.16 per $1,000 of assessed value for five years for operations beginning 2007-2008? This measure may cause property taxes to increase more than three percent.

Summary: This levy will allow the District to meet the increasing costs of operations. The first year the five year levy will be made is fiscal year 2007-2008. The proposed rate will raise approximately $349,719 in 2007-2008, $354,965 in 2008-2009, $360,289 in 2009-2010, $365,693 in 2010-2011 and $371,179 in 2011-2012. The estimated tax cost for this measure is an ESTIMATE ONLY based on the best information available from the county assessor at the time of the estimate.

Explanatory Statement:

The elected Board of Directors for Marion County Fire District No. 1 (“District” as used herein) voted on 1/12/06 to place a funding measure on the November 7, 2006 ballot. For the first time since 1983, the Board is asking District residents to consider a five-year local option levy. Approval of this measure would represent an increase of $.16 per $1,000 of assessed property valuation. This measure would fund District operations for the next five years and avoid proposed reductions.

In 1983 the District had 29 employees and 88 volunteers, running 1482 calls out of 7 stations. Today, the District has 34 employees and 96 volunteers, running 4,284 calls out of 8 stations. Although faced with the increase in workload and personnel costs, management has demonstrated commitment to the taxpayers by successfully operating within the established tax rate for the last 23 years. In the last five years alone, the District’s health insurance costs have risen 60% and retirement costs have risen 144%. Simultaneous to the increased costs of operation, Federally mandated reductions in ambulance reimbursement from the Health Care Financing Administration, the unanticipated impact of court decisions requiring refunds of property tax assessments to Qwest, NORPAC, and SUMCO, along with ongoing annexation of District property by the City of Salem have resulted in decreased revenues, placing the District in a projected deficit situation by 2008. In order to assure uninterrupted service delivery, the Board of Directors has authorized the Local Option Tax request.

Should the Option not pass, the District would determine what services would be reduced or eliminated. Fire response would be considered the critical “last resort” measure in these decisions. All other services provided by the District, such as technical rescue, ambulance transportation, emergency medical services, hazardous materials response, illegal burning, and public education activities would be analyzed in preparation for service reduction.

The District’s permanent tax rate is $1.9045 per $1,000 of assessed property valuation. The cost for the General Obligation Bond approved in 1998 to construct the new fire stations and purchase new equipment is currently and additional $0.4306 per $1,000. This will expire in 2008. Approval of this local option levy would represent an additional $.16 per thousand or $160 per year for a $100,000 home.

Marion County Fire District No. 1 is not part of the city or county but is a “special service district”, a unit of government equal to a city or county. It is governed by an elected Board of Directors who are residents of the District. As elected representatives of the District residents, their responsibility is to represent the interests of the District residents by making policy decisions that ensure the highest level of fire and life safety services provided in the most cost effective manner.

Further information can be obtained by calling 503-588-6526.

Submitted by:

Rich Mackie, President, Board of Directors

Marion County Fire District No. 1