January 31, 2024
Greetings Steamboat Springs Area Fire Protection District (SSAFPD) Residents –
Your SSAFPD Board of Directors knows that the significant increase in property valuations and the resulting impact on your taxes has resulted in questions and concerns. The latest edition of our newsletter focused briefly on this topic – in particular the news that your SSAFPD mill rate will be 9.000 mills in 2024, down from the 9.536 mills rate from previous years. This letter will provide a bit more context for our decision to set the mill levy at a lower rate.
Getting to the actual impact on district revenue and impact on property owners has been difficult to calculate. The defeat of Proposition HH, the special session of the legislature and the complexity of the calculations included in new state laws have made budgeting and mill levy rate setting a moving target. Unlike Proposition HH – a permanent reduction turned down by Colorado voters last year – the impact of the special session legislation is only for one year. We know the legislature is going to take this issue up again this year and there is at least one citizen initiative that could be put before the voters in November that will impact property taxes in the long term. These pending actions, which are outside of our control, make long-term financial planning difficult.
In conjunction with Chief Cerasoli and other City of Steamboat Springs staff, SSAFPD updates its five-year cash flow needs projections every year. This allows the board to plan our cash requirements methodically. Knowing that the downtown Steamboat Springs station would require replacement to meet safety standards for the crew, additional equipment and the staffing needs generated by an increasing call volume, SSAFPD has raised reserves over time. These reserves have allowed us to fund expanding services, equipment and facilities without having to consider debt financing or a special mill levy assessment in the medium term.
As was noted in one of our previous newsletters, generally the district pays 33% of capital equipment and facilities and 26% for operational expenses. During negotiations with the City on the costs for the new downtown (Station 1), SSAFPD negotiated a cap on our responsibility that is less than the 33%.
Based on current projections, our operating and capital requirements for years 2024 – 2027 will be $13,222,015 including the costs for Station 1. In 2028, we expect capital costs for renovating the Mountain Station. Planning for the Brown Ranch development, if it proceeds, includes a West Station and staffing. Brown Ranch costs will be shared by the Yampa Valley Housing Authority, the City and SSAFPD. While it is too soon to have a good estimate of these costs, we know they will be significant. It is also possible that the time frame for these projects may be pushed out beyond current planning.
It is the SSAFPD board’s plan to keep our mill levy rate at a level that we can redevelop reserves after paying our share of Station 1 and the expanded staffing such that we are in a position to cover all or a significant percentage of these capital costs and minimize or eliminate the need for a special assessment or debt to continue to maintain and improve the emergency services we provide.
What does all of this mean for residential and commercial taxpayers in 2024? At 9.000, the mill levy will result in the following savings based on actual values for both residential and commercial properties:
Residential Property
|
Actual Property Value |
Residential Assessment Rate |
Taxable Property Value |
Property Tax at 9.000 mills |
Property Tax at 9.536 mills |
Savings* |
|
$600,000 |
6.70% |
$40,200 |
$362 |
$383 |
$22 |
|
$700,000 |
6.70% |
$46,900 |
$422 |
$447 |
$25 |
|
$800,000 |
6.70% |
$53,600 |
$482 |
$511 |
$29 |
|
$900,000 |
6.70% |
$60,300 |
$543 |
$575 |
$32 |
|
$1,000,000 |
6.70% |
$67,000 |
$603 |
$639 |
$36 |
Commercial Property
|
Actual Property Value |
Commercial Assessment Rate |
Taxable Property Value |
Property Tax at 9.000 mills |
Property Tax at 9.536 mills |
Savings* |
|
$1,000,000 |
27.90% |
$279,000 |
$2,511 |
$2,661 |
$150 |
|
$1,200,000 |
27.90% |
$334,800 |
$3,013 |
$3,193 |
$179 |
|
$1,400,000 |
27.90% |
$390,600 |
$3,515 |
$3,725 |
$209 |
|
$1,600,000 |
27.90% |
$446,400 |
$4,018 |
$4,257 |
$239 |
|
$1,800,000 |
27.90% |
$502,200 |
$4,520 |
$4,789 |
$269 |
|
$2,000,000 |
27.90% |
$558,000 |
$5,022 |
$5,321 |
$299 |
*Estimated Annual Tax Savings @ 9.000 mills vs 9.536 mills
SSAFPD will continue to monitor both the legislative and citizen initiative process and will evaluate the mill levy each year to balance our financial requirements and the mill levy we establish.
Thank you for taking the time to read this letter. I welcome your questions and comments at gillskarl@gmail.com
Sincerely,
Karl Gills, SSAFPD Board Chairman