Jeffersonville City Council members will make a final call next week on whether to stop a recent fire territory some say is not achievable under a new state law.
The president of a Utica fire board said the territory is needed to provide sufficient emergency services to the area.
The Jeffersonville council and the Utica Township Fire Protection District board officially approved the territory in March, despite challenges that threatened its passage. It would expand fire service to Jeffersonville, cement coverage to Utica and Utica Township and include EMS service.
A new state law capping what fire territories can collect in tax revenue could quash it.
The new law is estimated to cut around a third of the territory’s planned budget. That would knock EMS service out of the offerings. Some say the tax cap now makes even fire service unfeasible. The council voted 5-4 Monday to rescind an ordinance passed in March to create the territory.
“...Based solely upon the State’s decisions, the ability to go forward with the proposed fire territory is no longer in the best interest of the taxpayers of Jeffersonville,” the measure to rescind reads, in part.
But some say it would still work. The council will meet for a final vote next week.
Joe Jarles, president of the Utica Township Fire Protection District, doesn’t want to see the fire territory stopped.
“I'm hopeful that they'll see that this is something that needs to be done and this is the right thing,” he said after the meeting. “And in the event that this is passed on, I don’t think it will ever happen again.”
The lead up
Jeffersonville officials started looking into the possibility for the fire territory last year, adding EMS to the mix as the investigation of former Clark County Sheriff Jamey Noel ramped up. Noel previously operated a company that provided EMS to all of Clark County and most of Floyd. He also oversaw fire service to some areas.
Noel is currently in prison after pleading guilty last August to multiple felony charges.
Clark County government currently contracts with Heartland Ambulance Service to cover the municipalities and unincorporated areas.
Advocates of the territory hoped it would improve service in Jeffersonville and also provide needed support to the Utica area. Jarles, president of the Utica fire board, has said the Utica district can’t pay for the emergency services it needs on its own.
Jeffersonville currently provides fire service to the Utica district under an agreement that expires at the end of the year.
Information from financial adviser Baker Tilly presented at public meetings this year showed an operating budget for the territory of around $28.5 million the first year, including capital. That called for a tax levy of .627 per $100 of assessed value.
In April, Indiana lawmakers passed a bill that caps that levy at .40, which estimates show would cap the maximum annual budget for the territory at $18.7 million for the first year.
At the request of Jeffersonville Mayor Mike Moore, the city’s fire department looked into whether plans were feasible with the new budget constraints
In early May, Jeffersonville Fire Department Deputy Chief Jason Sharp asked the council in a letter to “reconsider moving forward with the fire territory.” He said in the letter that “despite our best efforts, we no longer have the confidence that the funding this territory would generate would meet our needs to provide adequate service.”
Disagreement on the path forward
Council member Dustin White, who spearheaded the territory effort, said the original plan addressed a need for more fire service in the east end of town, which includes part of the River Ridge Commerce Center.
White said before the meeting Monday that the original plan, which didn’t include EMS, is still possible.
“Even with the 40 cent tax cap, we can accomplish that goal,” he said.
Mayor Moore said they can’t staff another firehouse, based on financial analysis.
Early opposition and challenges
The territory faced threats even before the new tax law dealt another potentially fatal blow.
At public meetings earlier this year, leaders from other taxing units, like school districts and municipalities, voiced concerns that the territory would mean big cuts to their tax revenue, impacting operations.
In March, the Clark County Commissioners voted suddenly to remove all three members of the Utica fire board the day before they were set to vote on its passage with the Jeffersonville City Council.
LPM News previously reported the commissioners did that to stop the vote.
The Utica fire board took that to court and the members were reinstated just in time to approve the territory before the deadline to do so this year.
After Monday’s vote, Jarles asked the council to stay steadfast. He said the Utica board has been with Jeffersonville even through “significant opposition.”
“I fought the commissioners, I fought River Ridge, I fought Indianapolis, all for the partnership,” he said during the meeting. “And now Senate Bill 1, the first time that you guys are faced with what you feel like is significant opposition, you jump ship. I don't understand it. This is a partnership. We should stand together.”
The council will meet at 6 p.m. Monday for a final vote.
Local units of governments are also assessing the broader impacts of Indiana’s new tax law, which makes big changes to their tax revenue.
Correction: This story has been updated to reflect that Joe Jarles’ statements to the council were after the vote.
Coverage of Southern Indiana is funded, in part, by Samtec Inc., the Hazel & Walter T. Bales Foundation, and the Caesars Foundation of Floyd County.
