Fire District Seeking Sales Tax Support
Board agrees to ask voters for 1.25 % bump — By Chris Dickey Leaders of the Lake City Area Fire Protection District are preparing to do something they haven’t done since 1982: Ask voters to raise taxes in order to fund ongoing operations of the organization.The proposal is different this time around, however. The district was initiated more than 40 years ago with a nod from Lake City residents to assess themselves a property tax dedicated to fire services. This fall, local voters will be asked to approve a 1.25% increase in the sales tax rate.The decision to seek more money was reached by a consensus of the district’s board of directors in January. Last Wednesday, April 16, during a special meeting, the board voted unanimously in favor of seeking the 1.25% sales tax initiative.If approved, the sales tax would generate approximately $375,000 annually, based on the current level of local retail sales activity, according to Fire District Secretary Michelle Warren Pierce. This year, the district’s property tax mill levy is expected to bring in $121,285, which is divided amongst its general fund, capital reserve and contingency budgets.“We haven’t asked for money here in 40-something years,” said outgoing General Manager and Fire Chief Bill Hagendorf. “The worst thing we can do is come back in three or four years asking for more. At 1.25 percent, you’d be very solvent for the next 15 years.”Fire district leaders point to a multitude of factors driving the need to seek more funding. Retail transactions in the Town of Lake City currently are assessed a 7.9 percent sales tax (comprised of 2.9 percent to the state, 4 percent split between the town and Hinsdale County, and 1 percent for the Lake Fork Health Service District. If the fire district proposal were approved by voters, this overall rate would jump to 9.15 percent.For example, a $100 purchase at a local restaurant, bar or retail outlet would increase from $107.90 in total cost, including tax, to $109.15.The sales tax rate in the City of Gunnison, by way of comparison, is 8.9 percent.District leaders opted to pursue a sales tax initiative, rather than property tax, because they believe it is a fairer way of spreading costs out amongst visitors as well as locals. Firefighters respond to a lot of vehicle and ATV accidents, in addition to the rare structure fire.“We see this as a way of sharing the burden with people who come to visit us in the summer too,” Pierce explained.District leaders noted the sensitivity citizens have to tax increases, but hope to state their case to local voters before the November election. They’ve budgeted $10,000 for a campaign that could include a mailer, presentations to local groups and other means of demonstrating the need to individuals.“No, people are not fond of tax increases, but they are fond of the thought that somebody is going to put a fire out at their house, or that volunteers are going to be well trained and equipment is going to roll out of the station and operate like it’s supposed to,” Pierce told the Silver World.“It’s about the level of service,” board member Crystal Brown said at last week’s meeting.“This has to pass,” added board member and volunteer firefighter Evan Milski. “We have to make this pass.”Some concern was expressed at last week’s meeting that this may not be the only tax-related question local voters face this fall. Hinsdale County Commissioner Greg Levine addressed the possibility that a proposal to increase the local lodging tax may be in the offing.“I would say the status of the County Lodging Tax increase is close to entering the deliberation stage,” he told the Silver World. “In my opinion, the county is facing other, more pressing issues.”Representatives of the Lake Fork Health District told the Silver World that they were not moving forward with a tax-related ballot issue this year.
