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Council authorizes legislative request to remove Rural Hall from county fire-tax overlay
Summary
After staff outlined a proposed countywide change to fire-tax funding that would raise an overlay rate and shift more costs to municipal residents, the council voted to authorize the mayor and town manager to seek legislative approval to withdraw Rural Hall from the county overlay and to negotiate a contractual funding agreement with the county.
Town staff and Forcite County deputy manager Kyle Haney explained a county proposal to restructure fire funding that would expand an overlay district and increase the overlay tax rate (staff cited an example increase from 1.79 cents to 9.51 cents per $100 of valuation). Town Manager Homer Dearman said that if Rural Hall remained in an expanded overlay, municipal residents would face the overlay increase unless the town offset it with a municipal-rate reduction, creating long-term budgeting instability and public confusion.
"As I mentioned before remaining within the overlay would create several issues...the most practical long-term solution is for the town to withdraw from the countywide overlay district and transition to a contractual funding arrangement with the county for fire protection services," Dearman told the council. Deputy County Manager Kyle Haney said the county is willing to work with the town on a contract and described the restructuring context from the county perspective.
Mayor Pro Tim Horn moved to authorize the mayor and town manager to begin discussions with the legislative delegation and the county to effect removal from the overlay and to draft a contractual funding agreement; Councilwoman Ring seconded. The motion passed by voice vote; council members present voted in favor. Staff said existing funding for the coming fiscal year would remain in place while negotiations proceed.
