The Big, the Bad and the Ugly Higgins Fire Tax

In order to reopen a fire station that has been closed for 16 years, the Higgins Fire District Board is pursuing a property tax to collect $762,960 according to the Engineer’s Report. They point out that the Fire Fee on our Property Tax bill is only $25 and has not increased since 1980. But, the Fire District also receives funding from multiple sources including other property taxes that we pay, intergovernmental transfers, interest earnings and funding from other sources. Property taxes generated $1,939,000 in fiscal year 2023-24. If the proposed tax is successful, it will continue in perpetuity with an annual 3% increase. Projected out 10 years at 3% add 30% to the assessment rate and it will be $232.42 plus the district will continue to benefit from increased property taxes.

There are several issues that need to be considered when voting for this large tax increase:

Can the current understaffing be resolved if the tax is approved?

Statistics about the Fire District point to an understaffing problem. Many of the present fire fighters are aging and when new, younger firefighters are trained, few remain at the District. The current firefighting capabilities are under stress and are dependent on CalFire to staff the actual responses of the District for 8 months of the year. That being the case, the prospects to fully staff an additional fire station given the constraints of the current staffing demands remains an unresolved and huge concern.

Does the increase meet the requirements of a special purpose tax?

Special assessments, defined by Prop 218, can only be levied on the basis of special benefits, not general benefits such as fire services, responding to medical emergencies, traffic accidents and other regular services provided by the Fire District. If it passes, it can be immediately challenged for its legality.

How much of the new taxes will be used to cover general costs to administer the district and cover the existing shortfall?

This vote allows the Fire District to adopt a fire suppression benefit assessment. An estimated 4,272 parcels in the district will pay to open the closed station and contribute to the administrative costs of the entire Fire District. For Fiscal Year 2024-25 the current proposed revenue is $2,364,000 with total expenditures of $3,278,140. The estimated shortfall is $914,140.

How can the special assessment be justified to reopen a closed fire station?

There is no evidence of a large number of new homes in the closed fire station area that need basic fire services. Based on the low growth rate in Nevada County that remains low considering large per foot building costs and other regulatory requirements, and no new large developments in the fire station area, the Fire District has not given justifiable reasons for reopening the station based on documented needs.

What percentage of parcels are exempt and must be covered by the rest of the property taxpayers and other sources?

The District is composed of 4,245 single-family units and 27 multi-family units. There are 968 non-residential units that are exempt and will not be required to pay the tax. For this year the total subsidized by taxpayers and other revenue sources is $106,528.

Will the maximum assessment rate increase, how and on what basis?

According to the Engineer’s Report the maximum assessment rate per benefit unit is equal to $187.97 but the Fire District has adjusted the rate to $178.78 per benefit unit. It will be levied in perpetuity unless the Fire Board elects to discontinue the fire suppression services, and, if passed, the tax will be levied on the next tax bill for Fiscal Year 2024-25.

Future inflation is covered by the California Constitution, Section 53739(b)(1) assessments and  “May be adjusted for inflation pursuant to a clearly defined formula…”  The local formula can be adjusted annually and is based on the annual change in the Bureau of Labor Statistics Consumer Price Index, All Urban Consumers, for the San Francisco/Oakland/Hayward area not to exceed 3%. If the Bureau of Labor Statistics revises or discontinues the index, the Fire District reserves the right to determine fluctuations in the annual cost of living.  Each Fiscal Year the lesser of CPI or 3% shall be applied to the new maximum assessment rate to calculate new rates and the new rate will be approved by the Fire Board.

It appears that the Fire Board has the ultimate authority to manage the assessment rate but with the establishment of an assessment district it is unclear whether property owners will be able to have a say in future increases – in other words, the new tax is cast in stone and cannot be changed or reversed.

What about the election?

Following Prop 218, (a protest election) ballots have been sent to all property owners within the boundaries of the Higgins Fire District as identified by the Nevada County Tax Collector. Some voters have not received ballots, some may have lost or misplaced the one mailed to them because it did not look like a normal ballot.  

The Fire District does not seem to be following election protocol imposed by the California Constitution that does not exempt them from following normal election procedures. There is no effort to ensure a chain of custody of ballots. Mailed ballots are picked up by the Fire Chief and brought to the ballot box where they are held to be counted on July 3. On that day they will be brought to the meeting from the ballot box, additional ballots brought by voters to the meeting will be included and the counting procedure will ensue.

Ballots require a yes or no vote and a signature of a property owner. There is no process for verification of ballot signatures. The ballots will be publicly opened and announced so there is no secrecy or confidentiality of the voter’s intent. This is especially true because the ballot itself has the voter’s name and address on it. These ballots are not anonymous and a property owner’s vote is easily linked to their identity.

What voters must understand: Only the received ballots will be counted. A 35% return of ballots is expected meaning that about 1/3 of the voters will determine the outcome. If the majority of returned ballots vote yes, the new tax is adopted in perpetuity with annual 3% increases. If the majority of returned ballots vote no, the new tax will not be adopted. If property owners do not vote, and their ballot is not counted as received,  they are effectively voting with the majority vote.

What can voters do to get a ballot?

Voters who do not have their ballot have a very short window to obtain a ballot. It is too late to depend on the mail to deliver the ballots on time to be counted on July 3. They can request a new ballot from the Fire District, and they can deposit their ballot in the ballot box or come to the meeting on July 3 at 6:00 p.m. and request a ballot and then vote and turn it in. Ballots can be turned in at the meeting. There has never been a more important time to vote and to vote no on this excessive tax for a district that has sustainability and funding issues that have not been resolved.  More money can’t fix these problems.