SFC mayors OK funding change for fire agencies
Act 833 funds generated by state through fire insurance premiums
The mayors of each city within St. Francis County met Tuesday afternoon to discuss distribution of the Act 833 funding, which helps support local fire departments.
St. Francis County Judge Gary Hughes told the group the last time they met to talk about Act 833 funds was in 2012.
"We are here today to discuss the distribution of our Act 833 funds, which are the funds used by our fire departments," said Hughes. "These funds are used to purchase equipment and whatever else they need. We met last in 2012, and at that time, the funds were distributed based on population. The mayors, at that time, passed a recommendation to try to help the small towns to give them more Act 833 money by giving $50,000 to Forrest City. Whatever remained, was split evenly among the other municipalities in the county regardless of population."
Hughes said he had been approached by Forrest City Mayor Cedric Williams and Forrest City Fire Chief Shane Dallas regarding the need to bring the issue before the county’s intergovernmental council.
"What has happened over the last 10 years is that, fortunately, that fund has increased," said Hughes. "So for the mayors of all of the small towns sitting here at the table, your money has increased. Your money has almost doubled over that 10-year period. Forrest City's amount has not increased over that 10-year period and they are still only receiving the $50,000. Forrest City Fire Chief Shane Dallas would like to make a presentation to see if he could suggest some changes to the existing allocation. The way it works is that any change that is made to the Act 833 fund allocation has to be made by a majority of the mayors’ vote. Should you all vote today, you would vote on a recommendation to the Quorum Court for approval."
Dallas explained that a portion of each homeowner’s fire insurance premium is placed into the Act 833 fund to be distributed to fire departments.
"I have a handout that has a breakdown to educate you all on Act 833," said Dallas. "Where it comes from, how it is distributed and where we are today. Act 833 is an insurance premium tax that is placed on everyone’s fire insurance. A portion of your fire insurance goes into a fund that is then kicked back to every fire department in every county. All of the mayors decide how it is distributed to the departments."
Dallas said he didn't believe that the intent in 2012 was for Forrest City to remain at $50,000 instead of increasing each year like the other departments.
"Up until 2012, these funds were distributed based on population," said Dallas. "In 2011, the intergovernmental council met and decided to reduce Forrest City by $36,000 a year to bolster the smaller departments and help them out. When that was done, the ordinance said that Forrest City would get $50,000 and the rest would be divided equally among
the other departments. In 2011, we were getting about $175,000 in insurance turnback to the county. Over the last 10 years, that fund has increased by $100,000. All of the other eight departments have benefitted from that increase, but Forrest City has stayed at $50,000 for that whole 10 years.
"So as you all went from roughly $14,000 in 2012 to now approaching $28,000 in 2022, Forrest City has stayed at $50,000," Dallas continued. "I don't think that was the intent when the ordinance was made. I believe the intent was that everyone would rise equally from that, but it wasn't realized until earlier this year."
Dallas offered three proposals for the council to consider, ranging from anywhere between $23,000 to $26,000 in 2023.
"I am here today to humbly ask you all to consider one of these three proposals, which would bring Forrest City up to the inflated amount from the increase over the past decade," said Dallas. "From here, we all would go up equally as the money increases instead of Forrest City staying stagnant at a certain number. If you look at these proposals in front of you, there is an A, B and C option. They range anywhere from the volunteer departments going from $23,000 to $26,000 in 2023, whereas right now you are standing at $28,000. That would bring Forrest City up as you all have increased over the past decade."
Dallas said that in his mind, choosing one of the three proposals would be doing what he believes is right.
"We, at the Forrest City Fire Department, try to be a good 'Big Brother' to all of the fire departments in the county," said Dallas. "Responding to calls, providing training, answering questions and doing whatever we can do. We will always do that. There is no hidden agenda, we are going to do what is right. I am just asking you all to consider one of these proposals, which in my mind, would do what is right."
Proposal A showed that in 2023, each of the smaller fire departments would receive $26,000 while Forrest City would receive $67,439.76. Proposal B showed that each of the smaller fire departments would equally split 70% of the Act 833 funds, or approximately $24,100.98 each and Forrest City would receive $82,631.94 or 30% of the funds. Proposal C showed that Forrest City would receive one-third, or $91,439.77, in 2023 while each of the other eight departments would receive $23,000.
“Have these amounts continually increased pretty much the same each year?” asked Palestine Mayor Billy Shafer.
"They have increased every year, yes sir," said Dallas.
"You anticipate that to be continuous?” asked Shafer.
"I don't believe anyone’s homeowner insurance will go back down," said Dallas. "It is one-half of one percent of your homeowners insurance is where this money is generated from."
According to Wheatley Mayor Larry Nash, the initial increase helped the Wheatley Fire Department immensely, but he said he was in favor of recommending one of the three new proposals.
"Wheatley sits on the far edge of the county," said Nash. "Anytime we have trouble, Shane, wherever he is, Forrest City, Palestine, it doesn't matter. They all come. They help us out. I didn't realize they weren't increasing like us. When we increased this, it helped our department a lot. It takes a lot of years to build up to do anything. We still need more. Everyone needs more. I am in favor of recommending one of these proposals."
"Our intent is not to take away but the pot is only what the pot is," said Dallas. "We are just asking to bring the field back to a level playing field going forward."
"Do you know what percentage $50,000 was back in 2012?” asked Colt Mayor Randy Hefner.
"It was approximately 30% of the funds in 2012. Proposal B would put us back even with what it would look like today had we continuously grown each year like the other departments. Proposal A is a conservative number, B would put us back in line with where we were in 2012 had we continuously increased, and C is just another option."
"So with option A, all of our fire departments would lose about about $2,179.97?” asked Hughes Mayor Lincoln Barnett. "Yes sir," said Dallas. "Option B we would lose $4,078.99, and I don't want to consider option C, which would be a loss of $5,179.97," said Barnett.
Colt Fire Department Chief Jim Haynes said that losing $2,000 would hurt his agency.
"I can appreciate what Shane is saying. I agree with what Shane said, but from our standpoint, and I am not speaking for the rest of these departments, everybody needs every dollar they can get," said Haynes. "With us being on the north end of the county, we are out there by ourselves. Caldwell and Newcastle are the closest fire departments to us and I need them to be the best they can be to help us. Everyone here will come if I call them, just like we would go for them. Within the last 30 days, we bought a tanker for $20,000. We, my firemen and I, just built three bays on our fire department. We didn't hire it done, we built it ourselves. The only way we were able to do that was with this money. I appreciate what Shane is saying, but if you are asking me, I need every dime I can get. This is the money we live on. That $2,000 that I am losing isn't a drop in the bucket for them, but it will hurt us."
Barnett made a motion to recommend Proposal A to the St. Francis County Quorum Court and the motion was seconded by Widener Mayor Arvin Billingsley. The motion was passed unanimously.
Following the meeting, Dallas said that this was a request to other communities in the county to help fix the issue and that a big step was made in the right direction.
"It feels good to try to correct what everyone kind of feels like was an oversight from 2011," said Dallas. "We set a monetary number in the ordinance rather than a percentage so as the pot grew, we were left behind in Forrest City for a decade.”