Jefferson County Emergency Services District #4

Report
Jefferson County Emergency Services
District #4 (JCESD #4)
Will Provide Funding for the Future Reliable Fire Protection
to over 10,000 Jefferson County Residents
Special Thank You to:
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Carolyn Guidry and her staff for last
minute rush;
Same special thanks to Shane Howard and
his staff for the extra effort and last
minute rush;
City of Port Arthur, City of Beaumont, and
Taylor’s Landing for granting consent.
JCESD #4 Proposal
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Covers the LaBelle-Fannett, and Cheek Volunteer Fire
Departments Service Area
There are over 10,000 residents in the proposed District.
We ARE asking for permission to assess up to a $.10 per
hundred property tax.
We ARE creating a single source of stable revenue to be
utilized by two VFDs but the revenue is controlled by the
appointed ESD Commissioners.
We DO anticipate considerable insurance premium savings for
residents from reduction in ISO rating.
What is an ESD
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An Emergency Services District (ESD), under the
Texas Health and Safety Code; Chapter 775, is a
geographical area supported by taxes to provide
emergency services within the area that is
governed by an appointed Board of
Commissioners.
Eligible services include rural fire prevention and
control, emergency medical services (EMS) and
other local emergency services.
How are ESDs Operated?
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If approved, JCESD #4 will be funded with a
property tax.
After the creation and appointment of the ESD
Commissioners, the JCESD #4 Board will convene
and determine an acceptable tax rate and
exemptions.
Property Tax income belongs to JCESD #4, NOT
VFDs.
ESD Board creates its budget after getting input
from VFDs.
Requirements for Creation of ESD and
getting on Ballot
Task
Date Accomplished
File Petition with County Judge’s Office.
1/11/2013
Tax Assessor-Collector certified 100 qualified signatures
signed Petition.
1/14/2013
Jefferson County Commissioner’s Court accepted Petition and
called for public hearing.
1/14/2013
Post Notice of the Public Hearing on Court House Door 21
days before hearing.
1/14/203
Publish Notice for two consecutive weeks in a newspaper
with general circulation with the first notice to be published
21 days before the hearing.
1st Notice: 1/17/2013 (The Examiner)
2nd Notice: 1/24/2013 (The Examiner)
Obtain consent from Cities in District and Cities with ExtraTerritorial Jurisdiction in District (i.e. Beaumont, Nome, and
China).
Beaumont: 2/5/2013
Port Arthur: 2/5/2013
Taylor’s Landing: 1/15/2013
Conduct public hearing.
2/11/2013
County Commissioners call for election.
2/11/2013
Hearing on Petition
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If Commissioners Court Finds
1. that creation of the district is feasible;
2. will benefit the territory in the district;
3. will secure the public safety, welfare, and
convenience; and
4. will aid in conserving the real property or
natural resources in the proposed district
Then Commissioners Court shall grant the
petition and fix the district's boundaries.
Ordering Election
Upon granting petition, Commissioners
Court must:
1. Order election;
2. Call for election on next Uniform Election
Date May 11, 2013; and
3. Post and Publish Notice of Election.
ESD Commissioners
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ESD Commissioner Qualifications.
1.
2.
3.
4.
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Must be at least 18 years of age;
Must be a resident citizen of the state;
Must be a qualified voter within areas
served by the district; or
the owner of land subject to taxation in the
district.
ESD Board consists of five
commissioners.
Commissioners serve two-year terms.
Recommended
Commissioner Qualification
The commissioners court shall consider relevant
factors in determining the individuals to appoint
as emergency services commissioners,
including whether the individuals have
knowledge that relates to fire prevention
or emergency medical services and that is
relevant to the common policies and
practices of the board.
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Health & Safety Code 775.034(g)
Why the Need for an ESD
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Provides a Reliable Source of Income
Increased Call Volume
Increased Population Base
Financial Need
Economic Development
Possible Reduce Insurance Rates for
Homeowners
Public Safety
Safety of Fire Fighters
Upgrade and Maintain Equipment
Income Sources
1.
2.
3.
Property Tax (Based on estimated Taxable Value of $400
million):
•
$.10 cent per hundred = $400,000.00
•
$.07 cent per hundred = $280,000.00
•
$.05 cent per hundred = $200,000.00
•
$.03 cent per hundred = $120,000.00
•
$.02 cent per hundred = $80,000.00
•
$.01 cent per hundred = $40,000.00
Increased Billing: We believe the District can also increase its
billing for services provided by the VFDs to increase revenue.
Grant Income: Each VFD has been very aggressive in seeking
grants and will continue to do so in order to supplement the
budget. However, grants income has been significantly reduced
due to state and federal budget issues.
Property Taxes for Within JCESD
#4 District
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Jefferson Co.:
Port of Beaumont:
Port of Sabine Pass:
HFISD:
BISD:
PAISD:
HJISD:
SPISD:
DD6:
DD7:
DD3:
SNND:
JCESD #4:
$.36.5/$100 (all)
$.07/$100 (portions)
$.19/$100 (portions)
$1.36/$100 (portions)
$1.32/$100 (portions)
$1.35/$100 (portions)
$1.27/$100 (portions)
$1.14/$100 (portions)
$.21/$100 (portions)
$.14/$100 (portions)
$.33/$$100 (portions)
$.028/$100 (all)
$.10/$100 (all)
Example of Taxes for $100k House in HFISD
(77705) w/ No Exemptions
Total Taxes with No Exemptions = $2,063.00
$28.00 $100.00
$365.00
Jefferson County
$210.00
Drainage District 6
HFISD
$1,360.00
SNND
JCESD #4
Agricultural Land Issues
1.
2.
3.
Large land owners are concerned about the
increased property taxes they will have to
pay.
Agricultural exemptions vs. Agricultural use.
If a landowner has applied for and received
a determination the land qualifies for
agricultural use, the ESD Board must follow
this assessment.
Agricultural Land Use Valuations
Not an Exemption
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An Agricultural exemption is not
technically an exemption. It is an
assessment valuation based on agricultural
use.
Landowners may apply for special appraisal
based on their land's productivity value
rather than market value.
Typically, a productivity value is lower than
market value, which lowers property taxes.
See AppraisalDistrictGuide.com.
Appraisal District Assigns Values
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The Appraisal District assigns values for
agricultural land based on rates assessed
by the State of Texas.
Once the Appraisal District assigns values
to the land, the tax assessor-collector
assesses taxes on the appraised value of
the property based on the relevant tax
rate.
Agricultural Values-2012
JEFFERSON COUNTY APPRAISAL DISTRICT
2012 AG SCHEDULE
CROPLAND
& PASTURE
(cap rate '12 10.00%)
Land Use
Land Use
Description
Descriptio
n
Value/Ac
RICE
Rice
I Riceland
$301.00
SOY
Soybean
I Soybean
$92.00
PASI
Improved Pasture
IV Pasture - Improved
$63.00
PASN
Native Pasture
II Pasture - Native
$41.00
PASM
Marshland
I Pasture - Marsh
$21.00
ORCH
Orchard
Orchard
$569.00
SOD
Sod Farm
Sod Farm
$617.00
BAR
Barren
Barren
$10.00
Example of Agricultural Use and
Property Tax
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Property Owner applies for agricultural use of 1000 acres of Riceland
valued at $1,000.00 per acre.
Appraisal District grants the agricultural use application of the 1000
acres as Riceland.
Instead of the appraisal value of the property owner being
$1,000,000.00, the land will be appraised at $301,000.00 ($301 per
acre * 1,000 acres)
Tax Assessor assess property taxes on the value of the land based on
the agricultural use value, not the full value.
If JCESD #4 Property Tax Rate is set at the maximum of $.10 per
hundred, landowner would pay $301.00 in property taxes as opposed
to $1,000.00.
If JCESD #4 Commissioners grant exemptions and property owner
qualifies for exemption(s), those exemptions will be based on the
$301,000.00 valuation.
Insurance Service Organization
(“ISO”) Rating
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ISO is an independent organization that serves insurance companies, fire
departments, insurance regulators, and others by providing information
about risk.
ISO's expert staff collects information about municipal fire-protection efforts
in communities throughout the United States.
In each of those communities, ISO analyzes the relevant data and assigns a
Public Protection Classification (PPC) — a number from 1 to 10. Class
1 represents exemplary fire protection, and Class 10 indicates that the
area's fire-suppression program does not meet ISO's minimum criteria.
Virtually all U.S. insurers of homes and business property use ISO's Public
Protection Classification in calculating premiums. In general, the price of fire
insurance in a community with a good PPC is substantially lower than in a
community with a poor PPC, assuming all other factors are equal.
See www.iso.com/Products/Public-Protection-Classification-Service/Public-Protection-Classification-PPC-Service.html
Public Protection Classification(“PPC”)
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What is PPC? ISO's PPC program evaluates communities according to a uniform set of criteria,
incorporating nationally recognized standards developed by the National Fire Protection
Association and the American Water Works Association. So, the PPC program provides a useful
benchmark that helps fire departments and other public officials measure the effectiveness of
their efforts — and plan for improvements.
A Community's PPC depends on:
1.
Fire Alarm and Communications Systems, including telephone systems, telephone
lines, staffing, and dispatching systems
2.
The Fire Department, including equipment, staffing, training, and geographic distribution
of fire companies
3.
The Water Supply System, including condition and maintenance of hydrants, and a
careful evaluation of the amount of available water compared with the amount needed to
suppress fires
State of Texas: The PPC system in some form is used in all 50 states. Texas was the last to
adopt it. Commissioner Elton Bomer replaced the old key rating system with ISO’s Fire
Suppression Rating Schedule and related Public PPC system, effective February 1, 1998.
See http://www.iso.com/Research-and-Analyses/Studies-and-Whitepapers/ISO-s-PPC-Program-Page-2.htmlhttp://; and
www.tdi.state.tx.us/fire/fmppcfaq.html#a250095
HOW DOES ISO’S PPC CLASSIFICATION
EFFECT HOMEOWNERS?
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Every city, town or area that provides fire protection services is
subject to being graded to establish a PPC. Individual buildings -including your house -- are subject to the community's PPC. When
calculating property insurance premiums, insurance companies
using the PPC apply a factor that reflects a particular community's
PPC.
Although homeowners' insurance rates are driven mainly by your
area's claim experience, your community's PPC rating also is
important. For rate regulated companies, the premium on a brick
veneer house is 39 percent higher in an area rated 10 (worst) than
in one rated 1 (best). (This range is even greater for frame houses.)
A brick veneer home's rate difference from one class to the next
ranges from 1.5 percent to 9 percent.
See www.tdi.state.tx.us/fire/fmppcfaq.html#a250095
Proposed Ballot Language
(
(
) FOR
) A FAVOR
(
(
) AGAINST
) CONTRA
THE CREATION OF JEFFERSON COUNTY EMERGENCY
SERVICES DISTRICT NO. 4 AND ADOPTION OF A TAX ON
THE AD VALOREM PROPERTY SITUATED IN SAID
DISTRICT AT A RATE NOT TO EXCEED TEN CENTS PER
ONE HUNDRED DOLLARS VALUATION FOR THE SUPPORT
OF THE DISTRICT.
Next Step
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Approve the creation of District by
adopting a resolution and fixing
boundaries; and
Call for the election on May 11, 2013.
Call for election must happen no later than
March 1, 2013.

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