The Salem Fire Protection District Board is expressing frustration with Salem’s new large TIF-4 district.
Board President Mike Squibb says the district ‘will hammer’ the assessed valuation growth in their property taxes, which is needed to keep up with a 15-percent increase in cost structure each year and to replace equipment qualified as ‘antique’. He notes fire trucks over 25 years old qualify as antiques, and five of the department’s vehicles are in that category.
TIF districts capture property tax increases to assist in development costs and improvements to properties within the TIF.
While commending the city’s economic development efforts at the fire trustees meeting on Monday, Squibb warned it could have an impact on fire department services, including the potential loss of the current ISO-3 insurance rating that is awarded to only the top five percent of fire departments in the country. He notes it is much sought after by those involved in commercial developments. Any decline in the rating would result in higher insurance costs to both businesses and residents.
Squibb says at least two engines at a cost of $600,000 to $900,000 need to be replaced in the next five years. The department is also forced to replace highly expensive turnout gear and breathing apparatus devices every ten years.
Fire trustee and former chief Jim Somer says their slice of the property tax pie is small, but very important since it is their only source of revenue, as they get no sales or income tax revenue. He’s disappointed in the city’s actions.
Fire Chief Jim Cerny is unhappy with what he calls the city’s lack of transparency during the formation of the TIF district, and making information difficult to maintain.
Salem Community High School Superintendent Dr. Brad Detering and Salem Township Supervisor Dan Coryell were invited to the meeting. Squibb and Coryell expressed displeasure with the city trying to tie any agreement to surplus tax growth from some of the property in the new TIF that will not benefit from the program to a 12-year extension of the downtown TIF district. Squibb says at this point, the fire district may decide not to participate. The three say there have been no recent talks on some type of agreement. But Detering says tying the agreements together could put the taxing districts in a better position because the city will have to negotiate the extension of the downtown TIF that is set to expire next year.
