Owensville Board of Aldermen held a special meeting Wednesday, July 31, to continue discussions surrounding placing a question on the ballot for voters to fund a fire protection district.

First, Owensville Fire Chief Jeff Arnold presented information regarding the department’s current assets and finances.

Arnold discussed grants received within the last several years to inform the board what was purchased outside of city funding.

Grants received by the department between 2019-24 totaled $276,538.81 including a $69,681.81 CARES Act grant in 2021, $1,174,981 FEMA grant in 20219, $20,000 ARPA grant in 2023, and other smaller grants, all used for equipment and gear. 

The fire department has two large current loans: one with First State Community Bank for $426,918.72 at 2.75 percent interest and $176,017 due to the city for the pumper, which is currently being paid at $15,000 annually.

The department currently has $57,122.63 in reserves.

The assessed valuation of the firehouses are as follows: Station 1 at Franklin Avenue, building only, at $140,709; Station 3 at 600 Springfield Road, building only, at $108,468; and the Mt. Sterling Firehouse currently owned by the Owensville Rural Fire Protective Association, building only, at $33,346.

The assessed valuation of the vehicles listed was $1,459,758 low-range, $1,522,246 mid-range or $1,644,743 high-range.

City officials pointed out these values are assessed and not actual.

In comparison to local fire districts, Owensville would need an operating budget of $500,000. Nearby, the Gerald-Rosebud Fire Protection District has an operating budget of $600,000, for comparison, according to Arnold.

Other nearby districts are unable to levy a sales tax due to not having the same retail sales as Owensville.

Arnold presented two potential tax rates to obtain the needed budget funding.  One would be through a property tax of $0.45 (45 cents per $100 of assessed valuation). The other would be a $0.05 (half-cent) sales tax. Using 2023 as an example, revenue would have been $556,000.

The newest alderman to the board, Dan Breeden of Ward 1, voiced concerns regarding a sales tax.

“I cannot in good conscience get behind something that’s going to raise the city’s sales tax,” Breeden said. “I’m all for the district but I’m not going to be the one that goes down raising the city taxes on our people.”

Breeden advised he would not be in support while it was unknown whether it would be a sales tax initiative or property tax.

“There’s also been talk of the state capital that they are looking to possibly do away with personal property tax,” Arnold said. “I don’t know if that will turn into anything, but that’s something I would rather avoid if at all possible.”

Ultimately, the board was left to decide whether or not the fire department could place a two-part question on the ballot: part one being whether or not a district shall be formed and part two being elections of board members.

A motion was made by Ward 1 Alderman Dr. Cathy Lahmeyer and seconded by Ward 2 Alderman Denise Bohl, before being passed 3-1 with Breeden in opposition.

Fire department officials will work out the final details of transferring property, equipment and vehicles to the new fire district board and whether they will seek a sales or property tax will be determined at a later date.  The fire department’s members are in full support of creating a fire district, according to Arnold.