Fire prevention territory to be established

2009-02-11 / Front Page

Townships and Delphi will create separate taxing unit
By Debbie Lowe Staff writer

Strasser Strasser The threat that lawmakers in Indianapolis might follow one recommendation of the Kernan-Shepard Report as written into HB1406 and SB512 disturbs local township leaders. Both bills are still in committees and subject to change if they are voted into law at all. The possibility that those two bills could become law, which would move township funds into the control of the county council, continues to put a scare into several township trustees and their advisory boards. They would lose direct control of money collected from taxpayers to the townships.

Trustees from several townships and their advisory board members, along with Delphi Mayor Randy Strasser, met Thursday night to pursue the immediate establishment of a fire prevention territory. The measure would remove firefighting funds and activities from township government control now and place the control with an advisory board. Plans were formalized Thursday night to establish the territory, to include the entities which comprise the Delphi Tr i - Township Fire Department, and which would levy a separate tax rate to fund the new government entity. Strasser said fire fighting services would continue for residents "seamlessly."

Hershman Hershman IC 36-8-19 permits two or more contiguous townships to establish the territory with a provider unit, i.e. the City of Delphi. During the presentation, audience members were advised that township advisory boards would make the decision to establish the fire prevention territory without being influenced by taxpayer opinion.

Strasser explained the plan was to form a board of advisors to include the current township trustees and himself, as mayor of Delphi. He explained if township government was abolished in 2011, the trustees would continue to serve on the advisory board.

Trustees and advisory board members from Tippecanoe, Madison and Deer Creek townships agreed by consensus during the meeting to proceed with resolutions and public meetings designed to establish the territory by March 1. That deadline would have to be met to establish a tax rate for the new entity and begin collections Jan. 1, 2010. Strasser presented a resolution and adoption date, legal advertisement and public meeting date - all to be completed in February. The legal notice was prepared by the law firm of Bingham and McHale of Indianapolis, who was, according to Strasser, retained by the proposed new advisory group. Strasser advised that any entity could withdraw from the territory by the end of the year.

"I don't think it is a good thing to put it back into the county (control) because they aren't used to dealing with fire departments," Strasser said.

"If we are not ahead of this, we will be scraping bloody knees and elbows on it," he warned the crowd.

Strasser said Friday he, and the tri-township leaders, met roughly two weeks ago with Bill Jones, Tippecanoe Township (Tippecanoe County) Trustee. Jones prepared a power-point presentation about forming a fire territory, which his township is also doing. That presentation was the central focus of the Thursday night meeting.

Supporters of some or all of the Kernan-Shepard recommendations include the Indiana Chamber of Commerce, Indiana Association of Realtors, Central Indiana Corporate Partnership and the Professional Fire Fighters Union of Indiana.

Firefighters Union President Thomas Hanify said Friday that across the state, regional service delivery is considered more efficient than smaller-area based services. He said the bill written did not necessarily mean that township fire departments would be eliminated. He said his group was supportive of fire prevention territories when they were established to provide more efficient taxpayer services.

"Fire departments should be more efficient," he emphasized.

Sen. Brandt Hershman echoed that sentiment. He told the Comet Friday the Indiana code which allows for fire prevention territories was an "effort to promote efficiency and effectiveness."

"But if the (townships') effort is to protect their own sandbox and their own toys - to preserve the status quo," he said. "I think that's disappointing."

"The ability to do this is a privilege granted by the State legislature," he said. "If it's misused, the legislature can take it away."

Hershman said there was also a bill in committee, written by Sen. Connie Lawson, SB512, to reform fire prevention territories.

According to the Indiana Department of Local Government Finance Director of Communications Mary Jane Michalak, fire protection territories could be as large as a county and could be crosscounty. She said the concept of a fire prevention territory is consolidation and is supported in the Kernan-Shepard Report.

Michalak said SB512 would also prevent formation of fire prevention territories after July 1. She said that fact "may explain why many units are working quickly to get this accomplished." However Michalak said SB512 "is still going through the steps to become law and will likely undergo more changes as it moves forward."

Michalak said IC 36-8-19- 9 "specifically requires DLGF to verify that a duplication of fire levies within those participating units does not occur. As such, taxpayers will not be paying a double tax for fire prevention."

Buzz Krohn of O.W. Krohn & Associates LLP presented an overview Thursday night of the projected financial considerations of a fire prevention territory, the initial tax levy considerations and initial property tax rate estimates for the proposed territory. He said there was a budget of approximately $105,000 for firefighting between the three townships and the city and said the newly formed territory would require a $200,000 operating budget.

The timeline for action is:

Feb. 11 - Public hearing legal notice published in the Comet;

Feb. 19 - First reading of the Delphi City Ordinance to establish fire prevention territory, City Hall, 7 p.m.; and

Feb. 24 - Public hearing for Delphi Ordinance and final adoption by City Council, Stone Barn, 6:30 p.m.

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