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: 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 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 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? 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 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 ESD Commissioner Qualifications. 1. 2. 3. 4. 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. Health & Safety Code 775.034(g) Why the Need for an ESD 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 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 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 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 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 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”) 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? 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 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.