911 district raises plenty of questions for taxpayers
LYNNETTE HINTZE | Hagadone News Network | UPDATED 9 years AGO
Flathead County officials are fielding plenty of calls from residents opposed to the proposed countywide tax to raise $1.9 million a year for the consolidated 911 dispatch center.
Many taxpayers also are questioning the process to protest the creation of the 911 special district.
To some degree, the county expected feedback, Commissioner Gary Krueger said, because a ballot measure for a similar funding proposal lost last year by just 10 votes.
“We’re getting some protests, but the vote was right at 50-50, so yes, we’re getting some people who” oppose or question the proposed tax, Krueger said.
Commissioner Phil Mitchell said he also has been getting phone calls and is dismayed the protest period for the special district coincides with tax season.
“This [setting parameters for the 911 special district] was supposed to be done several months ago, not during tax season, and I’m not happy about that,” Mitchell said. “I think we’re going down the right path, but conceptually we could have done better.”
Creating the special tax district would enable the county to raise $1.9 million a year to operate the 911 center.
The county is nearing the end of an $800,000 set-aside for minimal capital improvements that was part of the original 20-year, $6.9 million bond request that voters OK’d for the center in 2008.
The 911 center is funded by a property tax levy of about 6 mills that funds a portion of the sheriff’s budget — a funding mechanism that generates about $1.4 million annually for the center. The three cities contribute money based on population, and a small tax on county residents’ phone bills brings in the rest of the operating money.
If the district is created, the county’s three incorporated cities have the option of rolling back their tax contributions.
Commissioner Pam Holmquist said she, too, has been taking calls from people confused about the protest process.
“It’s not a ballot and not a vote per se,” she said about the protest form. “It’s a percentage of the value” of the $1.9 million.
If taxpayers protest between 10 and 50 percent of the $1.9 million value, then the issue would be put to a public vote. If the protests total more than 50 percent of the value, the measure would fail and could not be addressed again for one year.
Personnel eats up a big portion of the dispatch center’s operations budget. County Administrator Mike Pence said 30 full-time equivalent employees staff the facility.
“It’s 365 days a year, three full shifts, plus backup people for vacations, sick leave,” Pence said. “It’s a lot of personnel. The biggest part of operations is staffing.”
If the county is successful in establishing the tax district, $500,000 of the money raised annually will be earmarked for capital improvements such as upgraded telephone and computer equipment, radio tower improvements and so on, Pence said.
Proponents of the tax district maintain that if capital equipment and replacement isn’t funded, the 911 center would die a slow death of attrition.
The county may or may not spend the $500,000 on capital improvements each year, Pence noted. It’s an annual average of what will be needed over the next five years.
Pence acknowledged he and his office staff also have been handling numerous inquiries from taxpayers.
“We’ve had a good number of calls, but we’re not totally inundated,” he said. “My staff is covering quite a few; I’ve spent some time with some individuals. Our mission is to answer questions.”
Several taxpayers who have written letters to the Daily Inter Lake about the 911 funding plan are taking issue with the protest form they’re asked to mail back to the county. The form allows each taxpayer to either support or oppose the district, but if the form is not returned, it’s considered a vote of support.
“Failure to return the ballot is considered an affirmative vote. What kind of democracy is this?” Ron and Judith Ross of Whitefish asked in a letter to the editor. “Everyone knows about low voter participation. ... What’s up when you are asked to vote against something and failure to do so is considered a yes vote?”
Pence said Flathead County followed state law in establishing the proposed district. He cited a statute that states “the form must specify that if it is not returned, the owner’s lack of action must be construed as support of the creation of the special district.
“The form must allow a property owner to select either support for or opposition against the creation of the district,” the state law notes. “However, if an owner does not make a selection of support or opposition and returns the form to the governing body, it must be construed as a protest of the creation of the special district.”
Holmquist pointed out that the Montana Legislature changed the law two years ago on how protests for special districts are handled, and that determined the language used for the county’s proposed 911 special district.
Complaints about the way businesses would be taxed for the 911 center also have surfaced.
The maximum initial assessment will be $25 per residential unit and up to $1,000 per commercial business, depending what type of business it is.
Mitchell said the sheriff and his staff worked to create a fair list of how much various commercial operations would be charged, but he sees discrepancies that need to be addressed.
“We need to adjust some of them,” Mitchell said, pointing to the construction industry as one example. All contractors and construction companies are lumped into one category and would pay the same $500 annual tax. He believes up to three categories are needed for construction, based on the size of the company.
The fee for storage facilities also should be adjusted, Mitchell said, though Krueger has an opposite viewpoint on how storage businesses should be assessed.
“If you have a small unit without a security light or security system, with nobody on site, and someone goes to their unit and it’s broken into, it’s automatically a 911 call,” Krueger said. “Should they pay less that bigger storage-unit businesses with safety fences and security systems?”
Among the businesses that would pay the maximum $1,000 annual tax are hospitals, bars and casinos, restaurants with bars, storage businesses, malls, pawn shops, hotels, convenience stores and recreation-based businesses.
Mitchell wants adjustments made to commercial fees by Dec. 1, but Krueger favors waiting until the tax district is approved.
“Maybe 911 needs to send a letter out every year [asking], do you agree with the fee, then adjustments can be made,” Krueger said.
Holmquist said she would want to see adjustments made before the commissioners vote on the special district.
“I want it fair and equal across the board and I don’t think the commercial [assessments] are right now,” she said.
Pence it’s possible for the commissioners to make adjustments on the commercial assessments before the protest period ends “as long as it’s less than what they were notified of.”
A total of 66,151 notifications were sent to Flathead County property owners regarding the county’s resolution of intent to create a 911 special district. Protest forms must be received by 5 p.m. on Dec. 29.
The commissioners will hold a public hearing at 9:30 p.m. Dec. 30 to consider written protests. If the tax district is approved the new assessment would show up on next year’s tax bill.
If the county can’t raise the $1.9 million annually either through the special district or a ballot measure, Krueger said cutting personnel at the dispatch center is a likely scenario.
“It would be a reduction in force and a reduction of service,” Krueger said. “We would lose response time. Calls would back up. I don’t like it, but I’m not a miracle worker.”
Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.