MULTNOMAH COUNTY FIRE DISTRICT NO. 10 ANNEXATION OF GRESHAM
QUESTION: Shall Multnomah County Fire District No. 10 annex the area of Gresham to provide fire protection and emergency services?
SUMMARY: Annexation approval would transfer responsibility for providing fire protection and emergency services within Gresham to Fire District 10, and insure the continued availability of the resources of the present Gresham fire department, for service in the District. The City would no longer provide these services. Annexation is not effective unless approved by both City and District voters.
Property within Gresham would be subject to District's property tax rate. District's permanent property tax rate is currently $2.8527 per thousand dollars of tax assessed value, and would go down to $2.19 from July 1, 2005 through June 30, 2008. Annexation would cause a net property tax savings of $ .66 dollars of tax per $1,000 assessed value or $99 on a home assessed at $150,000.
Intended purpose of annexation is to maintain current level of fire protection and emergency services in the region, and reduce tax cost.
EXPLANATORY STATEMENT
Annexation of Gresham by Multnomah County Fire District No. 10
Measure 26-73 proposes annexation of all property within the Gresham city limits to Multnomah County Fire District No. 10. Annexation would be effective July 1, 2005 if approved by the voters of both the City of Gresham and the District. The purpose of annexation is to maintain the current level of fire and emergency services in the region. Annexation would also maintain the City’s ability to provide police, parks, recreation and economic development services.
The City currently provides fire and emergency services to city residents. By contract, the City also provides fire and emergency services to Fairview, Troutdale, Wood Village and the District. Annexation would formalize the regional nature of these services by transferring responsibility for fire and emergency services within the City to the District. The City would no longer provide fire and emergency services. Gresham voters would be eligible to vote in District elections and hold District office. City personnel and assets used for fire and emergency services would be transferred to the District.
The District has been required to purchase fire services from the City of Gresham for an amount in excess of its tax revenues for several years. District will have exhausted its cash reserves in another year, by this method. It would then be able to provide fire or emergency services only by severely limiting the extent of fire services provided.
The permanent property tax rate of the City of Gresham is $3.61 per thousand dollars of tax assessed value. The Gresham City Council requires that these taxes be used in the General Fund only for police and fire services. These services will cost about $33.1 million dollars in the current fiscal year. The City’s permanent property tax rate should raise about $18.5 million dollars during this same period. The difference is paid from revenue other than property taxes such as franchise fees, business taxes, state shared revenues, and user fees. Other General Fund services such as parks, recreation and economic development are also paid from revenue other than property taxes.
The City has dealt with budget deficits in the General Fund for several years. The City used reserves and cost saving measures to limit reductions in services. The City anticipates another budget deficit next fiscal year, which may result in reduced General Fund service levels, including police and fire.
Property within Gresham would be subject to District’s property tax rate to pay for fire and emergency services. The District’s permanent property tax rate is $2.85 per thousand dollars of tax assessed value. The City’s permanent tax rate is $3.61 per thousand. Nevertheless, by Intergovernmental Contract signed by the City and the District the District has contracted to lower its rate to $2.19 per thousand, from July 1, 2005 though June 30, 2008, and the City to lower its rate by $1.25, to be $2.36 per thousand during the same period. The District does not expect a need to raise its $2.19 rate in the foreseeable future, though only bound to that rate for three years.
Annexation would reduce property taxes in the District, outside the City, resulting in a tax savings of $99.00 per year on a home with a tax assessed value of $150,000.
Submitted by:
Susan Martin
R.F.P.D. #10
No arguments FOR or AGAINST this measure were filed.