28 Mar Information on Tax Referendum
The Emmet – Chalmers Fire Protection District (ECFPD) is seeking a property tax increase. A referendum will be on the April 4 ballot.
Ten years ago, voters overwhelmingly approved a bond referendum that provided additional funding. This bond provided funds to maintain and acquire needed equipment, and is paid off as of last year. We received additional tax revenue to make payments on the bond. As this bond is paid off, we no longer receive the additional revenue for the bond payments.
Last year, property owners with a single family home having a fair market value of $100,000, paid an estimated property tax of $60.72 to the ECFPD. This amount is $33.23 for the regular budget and $27.49 of additional revenue for the bond payment (the bond payment amount will no longer be collected). We are the lowest taxing body on your property tax bill.
We are seeking a gradual increase spread out over four years. If the referedum passes, the property tax paid to the ECFPD on a $100,000 home will be:
In levy year 2022 (payable in 2023), the tax is estimated to be $43.19.
In levy year 2023 (payable in 2024), the tax is estimated to be $56.16.
In levy year 2024 (payable in 2025), the tax is estimated to be $73.00.
In levy year 2025 (payable in 2026), the tax is estimated to be $94.90.
Property taxes paid to the ECFPD will actually be less than in 2023 and 2024 than what was paid in 2022. At the end of the gradual increase (payable in 2026), the increase in the amount of property tax paid to the ECFPD will be about 56% more than in 2022.
In 2022, the ECFPD received $28546 in revenue for the regular budget. In 2026, we estimate we will receive $80597 in tax revenue if the referendum passes.
We believe our is modest and the increase will provide necessary funding to continue and improve services. We plan on saving much of this increaded revenue. Over several years, savings will be sufficient to outright purchase new fire trucks.
We have five fire trucks. All trucks are maintained in good working order, ready to respond when needed. The average age of our trucks is 26 years old, the newest is 11 years and the oldest is 40 years. Our frontline Fire Engine (Engine 10) is 19 years old. This truck is the first to respond to most calls and equiped for just about any situation. We plan on purchasing a new fire engine once sufficient funds are saved, in approximately 2029. We estimate the cost at that time will be $400,000. We will continue to save revenue and replace trucks after that.
Due to the Property Tax Extension Limitation Law (PTELL), the ECFPD can not raise taxes more than that rate of inflation or 5% (whichever is less) without a referendum.
Without the additional revenue provided with the tax increase, we will not have enough funding to replace aging fire trucks and equipment. We will continue seeking alternative funding (grants and donations), but it is unlikely to be enough to replace fire trucks.
The Board of Trustees and the Volunteer Firefighters thank you for your continued support. We hope that we can count on your YES vote.
