If Port Townsend is annexed into Jefferson County Fire District 1 – more commonly known as East Jefferson Fire Rescue – property taxes for a $300,000 city home would go up by at least $60. The annexation into the fire district would apply only to firefighting and emergency medical services.

The possible increase in property taxes for city residents was one of several topics discussed at the second town hall meeting about the fire annexation process, on March 29. Voters in both the city and in the fire district are to vote on annexation later this year.

There would be no increase in property taxes for those living outside city limits.

City Manager David Timmons said East Jefferson Fire Rescue (EJFR) currently provides fire and EMS services to the city via a 2007 interlocal agreement, but “interlocal agreements are not really something that’s intended for the long-term sustainability as a permanent solution … it’s really seen as a step toward annexation.”

Fire service in the city would remain the same if annexation is approved. Fire/EMS finances would be simplified, as would the voting process for fire and EMS issues, and city residents would get two representatives on the fire district board.

More than 50 people attended the meeting to discuss the subject of fire annexation. About half of those in attendance were city or EJFR employees.

INTERLOCAL AGREEMENT NOT PERMANENT

EJFR serves about 21,000 people, 10,000 of whom are within city limits. It operates seamlessly within the city and offers the same level of service in both the city and the fire district, Timmons said. But, from a funding perspective, the fire district and the city are separate and distinct, which complicates the voting process on fire issues and complicates payments, said Bill Beezley, public information officer for EJFR.

Timmons said one of the benefits of annexation would be that “funding gets improved because it establishes a single taxing district, instead of having the two [one in the city, and a second in the fire district]. And, the complications that run from trying to maintain parity across the two taxing districts is eliminated by the process of annexation.”

Timmons said it would cost “in the millions” for the city to reconstitute its own city fire department, and a consolidation of fire services was more efficient.

If annexation is approved, the interlocal agreement would go away and the city would be annexed into Fire District 1 for purposes of fire and EMS services.

One reason annexation is an issue today is it had been delayed as a result of the 2008 Great Recession.

$300,000 GAP

Timmons said another reason for annexation was the way the finances work out. Currently, city residents pay about $300,000 less than Fire District 1 residents for fire/EMS, and this gap would be closed.

If annexation is not approved by voters, services still continue temporarily under the current interlocal agreement but “it’s become clear now … that the status quo is not going to stay,” Timmons said.

The terms of that agreement would need to be renegotiated to address the funding inequality.

Annexation of the city into Fire District 1 is one way of closing that gap, since all properties in the district would be taxed at the same rate. But, if annexation is not approved, there are alternatives:

The first is to maintain the status quo, with the city paying $300,000 less, and district residents absorbing the cost. Fire commissioners would have to approve that decision.

“I don’t think it’s highly likely that they’re going to say that they’re willing to absorb a $300,000 subsidy for the benefit of the city residents over the district residents,” Timmons said.

The second option is for the City Council to lower the level of city services.

“If we had to come up with $300,000 to fund this difference, then it’s going to come from somewhere else,” Timmons said.

In 2011, services were reduced for city parks and for the pool, Timmons said.

The third option is to raise the city’s current special-purpose fire levy to make up the difference.

SEAT AT THE TABLE

Presently, the city has three council members on a joint board with three elected fire commissioners. However, the City Council members’ role on that board is only advisory and those members have no official vote on EJFR policy.

If annexation is approved, the EJFR board would increase from three members to five, with two of those from the city, two from the fire district and one at-large representative, to vote on matters related to Fire District 1.

CITY, COUNTY AND DISTRICT LAYERS

Timmons said there were layers of government, many of which overlap, including the federal and state governments. In Washington, there are also 39 counties, 281 cities and more than 1,700 special-purpose districts.

Those special-purpose districts are dedicated to specific government functions, such as fire districts and school districts.

To illustrate how governments were layered, Timmons asked the audience to guess what percentage of users of the city pool were county residents. Guesses ranged anywhere from 10 percent to 100 percent.

Timmons said the correct answer was 100 percent.

“Every city resident is a county resident … because of the layering of government, every resident of the city is a county resident – an equal with residents outside the city,” Timmons said.

In a similar fashion, if annexation were to be approved, every resident of the city would also be a member of the overlaying fire district.

NEXT TOWN HALL

The third and final town hall meeting on fire annexation is 6:30-9:30 p.m., Thursday, April 5 at 200 Battery Way in Fort Worden.

A video of the first March 20 meeting is available on the city’s website at

http://goo.gl/oyktt4. Timmons said the meeting may also be broadcast on Port Townsend’s TV station. A survey on annexation is also to be hosted on the city’s website,

cityofpt.us.