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CC 2013-02-26_11.a. Feasibility PresentationFIVE CITIES FIRE AUTHORITY SPECIAL FINANCING DISTRICT FEASIBILITY STUDY By: Adina Light, Senior Consultant 1 SPECIAL FINANCING DISTRICT BUDGETARY NEED Goals Compliance with National Fire Protection Associations (NFPA) guidelines for initial response to a structure fire Compliance with the Occupational Safety and Health Administration (OSHA) “2-in/2-out” requirements Establish apparatus replacement program Enhance dispatch capability Personnel Three Fire Engineers Three Fire Fighters Full-time Fire Prevention Officer (Battalion Chief) Convert Part-Time Office Assistant to Full-Time 2 SPECIAL FINANCING DISTRICT FUNDING OPTIONS Fire Benefit Assessment Voting threshold is simple majority protest hearing 50% approval by property owners Special benefit requirements Can only pay for fire suppression related costs Five Cities Fire Authority responds to more emergency medical services than fire incidents within jurisdiction Not able to fund full budget requirements Community Facilities District Voting threshold is 2/3 approval by registered voters No special benefit requirements Can pay for all services provided by Five Cities Fire Authority Able to fund full budget requirements Can be a mailed ballot election 3 SPECIAL FINANCING DISTRICT PROPERTY DATA Land Use Classifications 4 REGISTERED VOTERS SPECIAL FINANCING DISTRICT 5 SPECIAL FINANCING DISTRICT SPECIAL TAX RATE ANALYSIS Scenario 1 The following scenario illustrates the breakdown of special taxes based on land use assuming a budget of $1.2 million annually. In summary, each Single Family Unit would pay $54.00 and each Multi-Family Unit would pay $46.00. 6 SPECIAL FINANCING DISTRICT SPECIAL TAX RATE ANALYSIS Scenario 2 The following scenario illustrates the breakdown of special taxes based on land use assuming a budget of $1.4 million annually. In summary, each Single Family Unit would pay $62.00 and each Multi-Family Unit would pay $55.00. 7 SPECIAL FINANCING DISTRICT SUMMARY – NEXT STEPS Determine funding mechanism and rate levels to present to Arroyo Grande, Grover Beach and Oceano CSD Options: Benefit Assessment District Community Facilities District Combination Do Nothing Community Outreach and Polling Explore length of tax and CPI options Formation of Special Financing District 8