In last week’s chat I voiced a few concerns about the
movement to consolidate fire districts within El Dorado County and the
potential financial impact on El Dorado Hills.
As mentioned, the Rescue Fire Protection District Board of Directors and
our fire board have just voted to explore the merits of EDH Fire annexing
Rescue Fire. Of course it will take some
time for both staffs to evaluate all of the issues surrounding this annexation,
develop a plan, get their respective board’s approval, EDC Board of Supervisors
approval and then LAFCO approval to proceed, but just like the Latrobe Fire
annexation, the wheels are set in motion.
I first have to ask the Rescue community: why support an annexation if there is no
elimination of the two fire service special assessments voted for previously? Similar to Latrobe, Rescue property owners pay
special assessments to augment ad valorem property tax fire funding because of
their low AB 8 rate. However, now that
the AB 8 rate can be increased as part of the annexation to EDH Fire, why not ask
to have the special assessments eliminated as a condition of the annexation? This takes the form of double taxation if not
– paying special assessments for fire service and now fire receiving substantially
more property tax funding because of annexation. Rescue Fire receives over
$365,000 in special assessments annually.
Would Rescue vote for these special assessments now knowing their AB 8
rate is lifted to a level that would provide the fire service they always
wanted? I think not.
It doesn’t take a CPA to know that migrating to a fully paid
firefighter workforce in these outlying areas has a significant financial
impact. Rescue is however a fully paid
24/7/365 firefighter workforce but others like Latrobe are not. Regardless, although initial annexation staffing
projections might mitigate some financial burdens over the first five years, they
will begin to become materially significant down the road as increased
coverage, OT, retirements and higher salaries plus pension costs start to take
hold. Just ask El Dorado County Fire District why they don’t annex anyone into
their district. Unless someone can tell
me that these outlying areas will grow in proportion to El Dorado Hills or
expense management follows the actual property value growth trajectory in those
areas, then EDH is the financial loser in these acquisitions.
It would seem after a Rescue annexation, possibly Diamond
Springs/El Dorado down the road (yes that has been brought up too) and Garden
Valley not possibly liking a Georgetown marriage, that we could truly become
the El Dorado Hills “County” Water District as our actual founding name so
states. It’s also fascinating that the EDC
Board of Supervisors is willing to match our 17% AB 8 rate for others, and
possibly approve even higher, even when they have a financial crisis of their
own. Truth be told, our funding rate was
first established based on the district providing water storage, distribution
and water rights to the community and “ancillary” fire protection services (did
you notice how our founding name above only includes “water” and not “fire”).
So, once the district realized they could pawn off the
significant expenses of providing water services to EID, all of the funds were
freed for just fire services. Since the
funding rate couldn’t be modified downward without the dissolution of the district,
EDH went along with all of the money flowing back to the community for fire
services alone. Forget now that we pay
EID substantial fees for water and sewer service (geez, did I mentioned
anything about double taxation before), throw in the meteoric growth and rise
in property values in EDH, and you have one of the best paid fire departments
in California. Should these mostly rural
fire districts join this lucrative compensation party? Seriously, how could this be good for our own
firefighters allowing others to take a piece of our financial pie?
Not to use fear inappropriately but it certainly is
conceivable that all annexed fire district voters could readily support their
own slate of candidates for our fire board at a future election, and take majority
control. I seriously doubt El Dorado
Hills wants to wake up one morning and find their substantial fire district cash
reserve funds being used to build out new stations in Latrobe and Rescue as
well as replace all of their aging fire engines and apparatus to boot.
If we want to be serious about doing what’s right for El
Dorado Hills, then let’s explore the merits of consolidating with our own CSD
(they have all the governmental powers to provide fire, police and emergency
services to our community) and let our tax dollars “subsidize” within the El
Dorado Hills community, not beyond. Frankly,
let’s just stick with shared contracts for services with these other fire
districts and stop the annexation empire build!