Fire protection redistricting may impact insurance

Fire protection district could lower insurance premiums

According to Jim Piche, President of the Carbon County Fire Protection District Steering Committee, one benefit of a fire district may be lower insurance premiums for homeowners and businesses.

Unincorporated Carbon County does not have an Insurance Service Organization (ISO) rating, which is one of the factors insurance companies use to determine rates for an area.

An ISO evaluation for fire protection involves looking at communications, hose testing, pump testing, water system capability, training, and personnel attendance. Based on that the ISO rates the capability for fire protection. Larger municipalities can achieve an ISO rating between 1 and 7, largely because of their gridded water supplies. A rating of 1 is the highest and a 10 is the lowest on the ISO scale.

“Currently, Carbon County is not even rated,” Piche said. “with just the organization of the fire district a 9 is attainable.”

Piche said “in round numbers, on a property valuation of $250,000 the tax rate [for the fire protection district] would be about $65. In most cases the ISO change would more than offset the tax increase.”

“Yes it’s a tax, no doubt it’s a tax, but the benefit is you’ll get it back,” Piche said. Piche encourages property owners to call their insurance agent and see what the difference in their premiums might be if the fire protection district is adopted.

The county currently has 55 pieces of fire fighting equipment, much of that is 30 years or older according to Piche. Currently the county has a yearly budget of $330,000 to operate 11 stations and the 55 vehicles.

If the fire protection district is passed on Nov. 4, it only affects unincorporated Carbon County, but municipalities can join at any time.

Piche said the steering committee has every intention to ensure the fire protection district board represents all areas served. If membership grows the district can expand the board from its currently slated four positions to accommodate one more member.

According the Piche, the structure of the district will be such that all money will be managed through the county treasurer. No individual will have the authority to spend money, and any interested citizen will be able to go to the county and obtain financial records for the district. Piche said he feels this resolves any questions about financial transparency in the organization.

One source of revenue that can be pursued by fire protection district staff is federal and insurance company reimbursement for calls. According to Piche, the fire department is not currently pursuing insurance company reimbursement for emergency calls.

Piche said it is “the intention of the commissioners that in November 2015 … we will move from Carbon County Fire to Carbon County Fire District. On that day, the commissioners have agreed to sign over all Carbon County fire equipment to the district, all stations, all equipment … with a reciprocal agreement that that if the district would fail that any assets would go back to the county.”

The same applies to personnel, the staff of the fire department would transfer from the county to the district.

Compliance with Occupational Safety and Health Administration and National Fire Protection Association standards are two other points of focus for the fire protection district. These two organizations monitor safety standards for firefighters including respirators, ladders, hoses, and personnel physicals.

 

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