Fire board backs off on tax increase

After a year of fiercely defending the need for a tax increase, two of three Golden Gate Fire & Rescue District commissioners did a complete flip-flop, June 14, stating they no longer support an increase.

In September 2004, current board chairman Matt Hudson stated a tax increase was necessary because no amount of belt tightening on the part of the district could adequately address rising operational costs.

Hudson, whose seat is up for election this fall, said his recent change of heart was based on a study of the district's spending history and an estimated $2.2 million increase in district tax revenues projected for next year.

"I am ardently against raising the millage rate," Hudson told fellow commissioner Bob Mast, "Looking at the budget, we cannot continue to operate beyond our means... I don't see me supporting a millage rate increase — ever.""I won't go so far as to say, 'never,'" noted Mast, whose seat is also up for election. "I've been doing this long enough to strike that word from my vocabulary. There may be a need for it in the future, but I don't feel comfortable with a millage upgrade right now." Earlier in the meeting, the district's growth study consultant Chuck Mohlke presented a financial analysis of the district's spending growth compared to population growth over the past six years.

The figures showed that while the population grew 7 percent in 2004 and 6 percent in 2005, the district's employee costs rose 27 and 20 percent, respectively.

Based on population figures, fire service for every man, woman and child in the Golden Gate district rose in cost from $28 in 2000 to $60 in 2005. Comparatively, taxes paid per person increased from $27 to $58.

"It appears there was some fairly optimistic budgeting that took place," Mohlke said of the 2005 budget. "The revenues did not match and the district cannibalized a significant number of ad valorem dollars differently than the three previous fiscal years. I think there is a lesson there -the next budget should be accountable to fixed costs..." In 2005, the district's salary budget increased by $400,000 yet added only one new firefighter position. The budget was approved before contract negotiations were finalized with the fire union.

During the final budget hearing for 2005-06, fire commissioners voted to pursue a millage rate increase, stating there was no other way to address rising operational costs.

But Hudson and Mast were less confident of that decision, June 14.

Mast requested the millage rate increase be removed from the evening's agenda, noting commissioner Chuck McMahon and Fire Chief Don Peterson were attending a fire service workshop and could not participate in the discussion. Despite not taking any official action on the matter, the two shared their personal feelings on the subject.

"I feel we should keep moving forward with the study, but at this point we are not ready for (a millage rate increase)," Mast said.

Hudson said he's convinced the district needs to crunch its numbers, not raise taxes.

"The analysis should go on," he said of the district's growth study,"You're not going to get where you're going without a road map to get there." Under new business, Mast and Hudson voted to set up a pre-established line of credit to address emergency costs. According to administrative assistant Pat Meulenberg, unplanned costs from last year's hurricane events jeopardized the district's payroll. She said the line of credit was not a loan, but a 90-day note that would be paid back immediately upon receiving funding.

Both commissioners voiced hesitation to take on any more debt, but voted to establish an emergency line of credit to see the district through the remainder of fiscal year 2005-06.

"That was reckless of the commission, last year," Mast said of the additional emergency costs. "It is a commission problem, not a staff problem. We have to put enough aside to cover this sort of thing. In our next budget we need to make sure we don't have a shortfall." In other matters: -Golden Gate Deputy Fire Chief Nolan Sapp reported the district responded to 463 calls since last month's meeting. The district has had one resignation and new fire inspector Barb Sibley was introduced.

-Fire Marshal Bill Sylvester reported the district conducted 212 inspections and received 160 sets of plans since last month's meeting.

-Golden Gate fire union president Chris Tobin reported the union has voted to support fire board candidate Kevin Knight for Seat 1 and David Stedman for Seat 2 in the upcoming elections.