Funding for Daviess County volunteer fire departments is expected to increase by nearly $500,000, as Fiscal Court is proposing a repeal and replace plan. Membership dues would be removed from property tax bills and replaced with a 1.1% increase to the insurance premium license fee that would 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.
Under that 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 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.
To remedy the issue, Fiscal Court is considering two ordinances were that introduced at Thursday’s meeting. The first would repeal the current membership due funding method. The second would 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.
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.
“It should be noted that this method arguably more fairly allocates the tax burden for fire protection,” he said.
Judge-Executive Charlie Castlen said the conversations for changing the funding method for volunteer stations have occurred for roughly 12 years.
“The general fund subsidy has grown considerably over the years and will continue to exist at a lower level, even with these changes,” Castlen said.
County Commissioner Larry Conder said he has been focused on the initiative since he took office at the start of the year and hopes it can help get volunteers in the door at the stations.
“We can address buying and replacing engines, life packs, and everything else, even the buildings that they’re in. But if we don’t have volunteers, then it won’t matter. So the plea that I make to all county residents is to volunteer at your fire stations,” Conder said.
As Thursday marked the first reading for the ordinances, there was no action taken. Fiscal Court will have the chance to pass the ordinances upon their second reading later this month. Should they be passed, 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.
