April 15, 1997

Fire board seeks $610,000 loan to pay debts

       White River Township’s explosive residential growth has increased the need for fire protection. To free up funds for additional firefighters and equipment, the board overseeing the township fire department has plans to take over the department’s debt.  On Wednesday night, the White River Township Fire Protection District Board of Trustees will consider a proposal to assume the debt, retire it with a loan, and then pay back the loan over six years.  “It boils down to the fact that the Fire Department spends quite a bit of what they get paying debt service” on stations and apparatus, said ML. “Butch” Sutton, board chairman. “We can’t get them any more money to add personnel.”  The board will consider obtaining a $610,000 bank loan to cover the debt. The board would, in turn, assume ownership of the White River fire stations and apparatus, while the department would be under contract to operate them, Sutton said.  The property tax rate for the White River Township Fire Protection District is 17.89 cents per $100 of assessed valuation. Out of its current budget of $709,140, one fourth — about $180,000 — goes to repay the debt on past equipment purchases and station construction.  If the board obtains a loan, the fire district tax rate will increase by 5 cents or less per $100, Sutton said. The actual rate hasn’t been determined.  Why is the change needed?  Other municipal government agencies have cumulative capital development funds to set aside money for expansion projects. But there is no such provision for rural fire districts, Sutton said.  The only ways for a fire district to pay for upgrades are through a loan or bond issue. “The expenses of a bond make it much more reasonable to take a loan,” Sutton said.  The fire department serves about 30,000 residents in White River Township.  Its apparatus includes two pumper trucks, on tanker, two rescue trucks, on battalion-command vehicle and two support vehicles.  On the roster are 60 part-time firefighters, 20 unpaid reserves and 15 cadets.  Removing the $180,000 annual debt service out of the operating budget would allow the department to hire, train and equip three additional firefighters each year, said Fire Chief Mike Dutton.  That would help at a time when new subdivision plans indicate the township’s growth will continue at a rapid pace.  “In the next three years, we estimate the White River Township population will increase 20 percent,” Dutton said.  Long-range plans for the department also call for a third White River fire station, although that is not covered in the current budget request.  If the fire protection board votes to take over the debt, it must first get approval from the State Board of Tax Commissioners.  Taxpayers who object would have a remonstrance period available.  If approved, the “fire debt rate” would then go into effect for 1998 property taxes, Sutton said.  The Fire Protection District Board’s public hearing will be at 7 p.m. Wednesday at White River Station 51, 1086 S. Runyon Road.  (Reprinted with permission from the Daily Journal)

 

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