Beech Tree News Network

The Butler County Fiscal Court, the Morgantown City Council, and the County Volunteer Fire Department Chiefs held a joint work session on Thursday to discuss the proposed Fire Dues Ordinance.  According to representatives from the Fire Departments, they need additional funding; many stated they put their personal money into the local fire departments.

Currently, the County gives $10,000 annually to each of the five fire departments and pays approximately $29,000 annually for insurance for the departments.  With the exception of Morgantown Fire Department, each district pays their utilities. The county owns the building which houses the Fire Department, Rescue Squad, and Senior Citizens Center and pays the utilities.
In an attempt to improve funding to the Fire Departments the Fiscal Court approved the first reading of the ordinance that would add an annual $25 fire dues to the county property tax bills. After the Sheriff's Office deducts a 4.25 percent collection fee and the PVA's Office receives a 1 percent fee the balance would be sent to Volunteer Fire District where the property is located.   Although property owners have to pay the fee up front, they would have the option to opt out of the dues and have their money refunded annually.

Mayor Billy Phelps expressed concerns about having to refund the entire $25 when they would not be receiving the full amount after collection fees.  He asked that if the City came up short on the refunding process for the county to make up the difference. 
City residents are not included in the Fire Dues Ordinance because they currently pay an insurance premium tax (2016-01) at 8 percent tax across five categories:  automobile, inland marine, fire, health, and life insurance.  Certain restrictions apply to the taxation of health and life insurance policies, according to state law.  The City of Woodbury citizens would also be excluded from the Fire Dues as they also pay an insurance tax premium.
According to Morgantown City Administrator Jerrod Barks, the City currently collects around $66,000 from the insurance premium tax which goes into the general fund.  The City budgets $35,000 to the Morgantown Fire Department.

Councilman Russell Givens requested that the ordinance be more clearly defined and questioned the legality of refunding more money than received.
Judge Fields asked that the City be responsible for their part of the insurance and utilities should the ordinance be approved.
Suzanne Brosnan, PVA, gave the total parcel count( 8,721) for the county.  Fire district totals:
First District  2,339
Second District  1,231
Third District   1,115
Fourth District  1.228
Fifth District  1,197
Bear Creek  277
Beaver Dam  66
Gilstrap    297
Morgantown  971
Property owners that have multiple properties in a district would only be required the pay the fee on two properties per fire district. Individuals whose tax bill is less than $3 does not receive a tax bill and according to the ordinance would be exempt from fire dues. The total numbers do not reflect those exempted, multiple properties, and those that will opt out so it is hard to project what the funding would be for each district. 
According to Judge Fields 73 of the 120 counties in Kentucky have a similar ordinance and most only see a 3-5 percent opt-out rate.
No action was taken.