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HomeMy WebLinkAboutRFA 2015-10-14 Item 3 - Fire Benefit Charge Funding System BasicsBasics of the Fire Benefit Charge Funding System • The Fire Benefit Charge (FBC) funding method is a voter approved, two part funding system that balances general purpose taxes and a user fee charged to buildings based on risk and need for service. It is called a benefit charge because it refers to the benefit of having fire protection available.  A tax of up to $1.00 may be levied on assessed values of property and used for all day to day operations and capital needs of the fire department.  A Fire Benefit Charge (FBC) of up to 60% of the operating budget may be assessed and used only for day to day operational expenses such as salaries, equipment, fuel and utilities. • Fire Benefit Charges and property taxes are authorized under the Revised Code of Washington (RCW) 52.26.180. • The Fire Benefit Charge formula calculates the amount of firefighting water that would be required to extinguish a fire(s) that could occur on a property and the number of fire department resources that would be required to deliver that amount of water.  Required fire flow and needed firefighting resources are determined by the size and types of improvement on a property;  Size is determined by finding the total square footage of all improvements on a property. Total square footage is determined by adding all gross square footage (outside measurements of building(s) and all floors, basements, garages and mezzanine spaces are added together to determine total square footage) on the property.  The type of improvement are defined as:  House or Condo, Apartment, Mobile home, Commercial building • When the structural improvement(s) on a property have higher than normal risk as defined by the National Fire Protection Association in Standard 13 the Fire Benefit Charge formula adds to the base fire benefit charge as follows:  A 30% increase when products or uses with high combustibility or high rates of heat release are present.  A 40% increase when products or uses with high quantities of flammable, combustible or hazardous materials are present. • The formula used is: Square root of square feet x 18 x category factor x response factor x risk factor x discount x Fire Flow Benefit = FBC  18 is a coefficient value based on empirical tests by the Insurance Services Organization (ISO) 13 • Exemptions to the Fire Benefit Charge (FBC):  Senior citizens and disabled persons who have been qualified through King County for senior and disabled discounts will receive the same discount offered on property taxes. If you think you qualify, call the King County Exemption Unit at 206-296-3920 or visit their website –  Improvements used specifically for religious worship or education are exempt from the Fire Benefit Charge.  Public schools who pay a per student stipend are exempt from the Fire Benefit Charge.  Entities with a contract for service with the fire department are exempt from the Fire Benefit Charge. • State law requires annual public hearings prior to the next year’s rates being adopted. Every six years, voters have the opportunity to reauthorize the Fire Benefit Charge. Hearings are held annually in October by the Kent Regional Fire Authority Governance Board. • Should you have any questions regarding the Fire Benefit Charge funding system, please call 253-856-4300. 14