Funding 911 Services in a Changing Environment

Transcription

1 Funding 911 Services in a Changing Environment Kenton County s migration from a phone line fee to land- use model 1

2 Kenton County, KY Located just south of the City of Cincinnati, Ohio Population of approximately 165,399 (2017) In between and borders both Boone and Campbell Counties 2 2

3 Kenton County Map 3 3

4 Kenton County Police Departments 4 4

5 Kenton County Fire Depts/Districts 5 5

6 Kenton County in Transition Since 2012, three existing dispatch centers merged into one Since 2014, County began the studying and then migration from an analog public safety radio system to a P25 digital 800Mhz radio system (Completion in 2019) 6 6

7 Click Historical edit Dispatch Master Funding title style in Kenton County Kentucky Revised Statue Title: Establishment of 911 emergency telephone service by local government Section 3 (a): The funds required by a local government to establish and operate 911 emergency service, may be obtained through the levy of any special tax, license, or fee not in conflict with the Constitution and statutes of this state. The special tax, license, or fee may include a subscriber charge for 911 emergency service that shall be levied on an individual exchange-line basis, limited to a maximum of twenty-five (25) exchange lines per account per government entity. Created July 13,

8 Click Rising to costs edit to Master match title technology style and dispatch demands Increased use of cell phones Advent of Mobile Data Terminals Sophistication of CADs 8 8

9 Click to edit Shrinking Master title land style lines = Shrinking funds Phone Lines From 2007 to 2012, Kenton County experienced a 15% decrease in actual telephone land lines used, requiring each dispatch center at that time to subsidize the total cost of operations

10 Search for Sustainability Two Legal Opinion Memos dated 07/26/11 and 05/22/12 07/26/11 memo focused on three areas for funding dispatch services: *Increasing Property Taxes (ad valorem) sufficient to cover costs *Establish a public service tax via general election *Establish a separate fee on the Property Tax bill (NOT ad valorem) under County Home Rule and KRS /22/12 memo focused on the singular issue of placing a 911 fee on Utility Company bills (i.e. electric meters) 10 10

11 Parcel Fee Kenton County Fiscal Court adopted a parcel fee on 08/17/12 Annual one-time fee of $85.00 Placed on County Tax bill but not treated as Ad Valorem City of Bromley vs Smith (Ky. Supreme Court Decision) 11/18/2004 Flat-rate tax assessed per unit of real property for nonfire-related emergency services was unconstitutional Distinction between Parcel fee and Smith case: Fee not calculated in ad valorem for penalties or discounts Could pay ad valorem but not 911 fee (but violation of county ordinance) 11 11

12 For and Against Parcel Fee Pros Legal (at least as far as one attorney was concerned) W ithin Court s control (county tax bill) Vehicle was something citizens won t ignore (again county tax bill) Some liked clear, separate fee for service Captured tax-exempt properties that paid the landline fee Cons Why treat different than other essential services (points towards ad valorem) Flat tax (regressive in nature) Seemingly remote nexus of fee to service One-time payment vs. monthly Perception that business was getting a pass 12 12

13 Funding Review Panel The Fiscal Court created a citizens committee to study dispatch funding options. This 9 member committee was made up of accountants, developers, architects, finance, medical, and commercial/residential real estate professionals. Over six months, studied various funding options including a 911 fee on the following: Tax Parcels Address Points Electric Meters Water Meters Land lines Car Registration Ad Valorem Cell phones Driver s License 13 13

14 Funding Review Panel Recommendation May, 2013, the funding review panel released its recommendation to the Fiscal Court via an 18 page report. The committee recommended that the Fiscal Court continue to use what the committee felt was a hybrid method of fair share approach and general revenue approach. Further, the committee defined each with the preferred fair share approach as a fee on electric meters and the general revenue approach as a general fund annual contribution (8-9% increase in property taxes). 07/23/13 the Fiscal Court voted to reduce the 911 parcel fee from $85 to $

15 Per Unit Fee Neighboring Campbell County adopted a $45 per unit fee (address points) for all occupied residential and commercial units in August, A residential unit shall be defined as a principal residential space occupied or designed for occupancy for residential purposes. A commercial unit shall be defined as a principal non-residential building space of any size occupied or designed for occupancy by an individual nonresidential business or public or private enterprise. The per unit fee was placed on the County tax bill under the same authority as Kenton County s parcel fee

16 Per Unit Continued Kenton County entertains a per unit fee in late 2016, and again in early 2017, but does not pass an ordinance effectuating the change. On April 18, 2017, Boone County adopted a $75 per unit fee (named a dwelling unit fee) for 911 under the same authority as Kenton and Campbell County. In 2017, Campbell County raised their per unit fee to $

17 Legal Challenge to Authority Within the same year Campbell County s per unit fee is enacted (2013), its challenged in court by the Greater Cincinnati/Northern Kentucky Apartment Association. Campbell Circuit Court upholds the fee under KRS Kentucky Supreme Court further upholds the fee upon expedited review. The court further explains that the fee is not a user fee and thus KRS 91A.510 is not applicable

18 Land Use Density Fee Rather than adopt a court tested Per Unit fee like Campbell and Boone, Kenton County had divided support for either total ad valorem tax dispatch or the Per Unit fee In an attempt to better associate the fee with higher frequency users of the public safety system, the Kenton County Fiscal Court adopted a Land Use Density Fee whereby categories of Land Use are divided by their Density and apportioned their cost of dispatch expenses based on actual call volume. The fee originates from applying the actual call volume costs over a category (per capita). Kenton County Fiscal Court passed the Land Use Density fee by ordinance on 08/22/

19 Land Use Density Chart 19 19

20 Fees on Utilities Just as Northern Kentucky was looking for other funding options in 2012, a case developed in Garrard County involving the placement of a 911 fee on water meters. Ultimately the Kentucky Supreme Court upholds the fee on water meters using the Campbell County case (Greater Cincinnati/Northern Kentucky Apartment Association Inc. v. Campbell County Fiscal Court, 479 S.W. 3d 603 (Ky. 2015)

21 Thank You Joe Shriver, County Administrator Kenton County Fiscal Court 303 Court Street Covington, KY (859)