Funding for Daviess County volunteer fire departments is estimated to increase by nearly $500,000 after Fiscal Court on Tuesday approved a repeal and replace plan. Membership dues will be removed from property tax bills and replaced with a 1.1% increase to the insurance premium license fee that will be restricted to fire service.
Currently, volunteer fire departments are funded by membership dues that were placed on property tax bills in 2003. The dues are fixed, meaning there is no natural growth factor to account for inflation or increased expenses. The only way for funding to increase for any station is for additional homes to be built in their response area.
To remedy the issue, Fiscal Court approved two ordinances Tuesday. The first will repeal the current membership due funding method. The second will introduce a 1.1% increase to the insurance premium license fee that would be restricted to fire service. The ordinances, while recorded individually, will function in tandem.
The ordinance repealing the membership fees will go into effect January 1, 2024, while the ordinance adjusting the insurance premium license fee will go into effect July 1, 2024.
Judge-Executive Charlie Castlen said that by enacting the repeal and replace plan, Fiscal Court is freeing up money that can be utilized appropriately.
“We are freeing us up to where we can put the money where it needs to go. We have pledged in this document that we will fund the stations according to the levels as they were already being funded, and the ones that need additional assistance will get that,” he said.
Under the current funding method, a combined $717,255 was generated in 2022 for the 10 volunteer stations. There was only a $29,405 increase across all 10 stations from 2018 to 2022 — with Stanley only seeing a $35 boost while Thurston-Philpot received an $8,970 increase.
County Treasurer Jordan Johnson previously said the current system does not account for limited residential growth in certain areas nor inflation of fire equipment, which has made it difficult for the general fund to stabilize the volunteer network.
“So it causes a disparity amongst (the stations). Currently, the dues system brings in about $720,000 for all 10 stations, and it is split up based on how many residences, farms, and commercial properties are in their region. So there is a huge funding disparity between them anyway,” Johnson said.
Johnson said the new funding method would generate approximately $1.2 million, meaning a nearly $500,000 annual increase. Johnson said that the average homeowner is expected to see little difference in the total amount paid per year. Much of the additional funds would come from larger companies that require more resources to protect structures and facilities.
Moseleyville Fire Department Chief Scott Smith said that in his 25 years in the position, the budget has grown faster than funding.
“We as fire chiefs should not have to worry about where the money is coming from. We should be worried about our fire station, our community, and getting volunteers,” Smith said. “I want to thank each and every one of y’all and Jordan [Johnson] for putting everything together because if everybody hadn’t done all their homework, we wouldn’t be where we’re at today.”
“It should be noted that this method arguably more fairly allocates the tax burden for fire protection,” he said.
