The Habersham County Commission tabled the fire consolidation feasibility study during Monday’s commission meeting. Yet, the study isn’t off the table. Interim County Manager Tim Sims told the commission that the study would be discussed further during the commission retreat set for February. That discussion could still lead to Habersham County and the cities exploring the possibility of fire department consolidation.
The cost of the study was discussed which led to the matter being tabled. The cost will be $55,000 to the county and will be performed by Southeastern Fire Consulting Company, LLC (SEFCCO).
Five of the seven cities have presented resolutions to the county to participate in the study. However, the cities are not obligated to pay for any part of the study nor will they be obligated to consolidate fire services with the county once the study is complete.
Should the commission approve the study in the near future, the consulting firm would start immediately and will evaluate the fire service delivery and fire protection classification for Habersham County and each of its participating cities.
The year-long fire department consolidation feasibility study is set to provide valuable insights for Habersham County and its cities. All seven cities within the county were invited to participate in the study, aimed at exploring service delivery, potential cost savings, and operational improvements through consolidated fire services.
While the study has garnered interest, some skepticism remains. However, elected officials across the county will be able to assess whether consolidation could lead to lowered property taxes, reduced home insurance costs, and more efficient fire service operations.
The outcome will depend on the findings of the study, which will evaluate the financial and operational implications of potential partnerships between the cities and the county.
Paid fire departments, volunteer services
Habersham County, Cornelia, Demorest, Baldwin, and Clarkesville currently staff paid fire departments, while Tallulah Falls operates with volunteers. Additionally, the cities of Alto and Mt. Airy rely on neighboring municipalities for fire protection, contracting with Baldwin and Cornelia, respectively.
The idea of fire service consolidation was sparked by discussions in Demorest after the city received new information about changes in fire department readiness ratings from the Insurance Services Office (ISO), which audits fire departments based on risk assessments related to manpower and equipment.
This audit can significantly impact the fire department’s ISO rating, influencing both insurance premiums and the cost of fire protection services. A higher ISO rating typically leads to higher insurance costs for property owners in the affected area.
Rising cost
As fire department budgets rise, local governments, particularly those with paid departments, are grappling with the financial burden. These budgets are primarily funded by property taxes, and the increasing cost of maintaining a paid fire department is becoming unsustainable for some small cities.
For example, Demorest has expressed concern about the substantial costs associated with upgrading their fire department to maintain its ISO rating, with some estimates running into the hundreds of thousands or even millions of dollars.
The city relies heavily on its water fund to support its general fund, which pays for services like fire and police protection. However, only 17.9% of Demorest’s general fund comes from property taxes, making it difficult to keep up with rising service costs.
Other cities fare somewhat better. Baldwin’s property taxes contribute 27.2% of its general fund revenue, while Cornelia and Clarkesville generate 34.9% and 57.3%, respectively. The county itself receives nearly 58% of its general fund revenue from property taxes.
Financial impacts on property owners
In cities with paid fire departments, taxpayers bear the cost of fire services in addition to their countywide fire service contribution. For example, Demorest property owners pay an average of $127.20 per tax bill for city fire protection, in addition to $82.54 for county fire service. Cornelia homeowners contribute $210.65, Baldwin residents $200.83, and Clarkesville residents $265 per taxpayer for fire service, on top of the county fire service cost.
While city fire service costs are significant, they are necessary to maintain ISO ratings, which can affect home insurance premiums. Areas with better fire protection, as indicated by a lower ISO rating, generally see lower insurance premiums.
For example, a fire department with an ISO rating of 3 tends to see more affordable property insurance compared to those with a higher rating, like a 10, which is associated with higher premiums due to diminished preparedness.
ISO and insurance premiums
ISO ratings are critical in determining property insurance premiums. The lower the ISO rating, the less risk insurance carriers associate with the area, which can translate into lower premiums for homeowners. Habersham County itself has an ISO rating of 5, with some areas rated as high as 10. However, automatic aid agreements with cities help reduce the impact of these higher ratings.
Tallulah Falls has a fire ISO rating of 4, while Baldwin, Clarkesville, Cornelia, and Demorest all hold an ISO rating of 3. These lower ratings benefit property owners in those areas, potentially leading to more affordable insurance premiums.
Challenges
Even with Demorest’s financial challenges going forward, the county will have some challenges of its own. All of the cities participating in the study have a better ISO rating than the county. The county will have to evaluate its fire service ability to the cities to achieve at least a similar ISO rating in those areas.
Increasing from an ISO 5 to a 3 will take time and come at a cost. Those costs will incorporate additional equipment and personnel to achieve that goal. How long that will take and how much that will cost should be covered in the consolidation study.
Another challenge will be the service delivery area. The city limits of Alto, Baldwin, and Tallulah Falls traverse the Habersham County line into neighboring counties. Should those cities consolidate fire services with the county, will that protection be provided to the city citizens that live across the county line?
Next steps
The consolidation study must first get approved by the county commission before it can move forward. Once approved, it aims to evaluate the feasibility of combining fire services across Habersham County and its cities. If the study suggests potential savings and operational efficiencies, it could lead to significant changes in how fire protection is provided across the county.
City and county leaders hope the study will provide clarity on how to manage growing operational costs while ensuring effective fire protection for all residents. As fire service costs continue to rise, finding ways to consolidate resources and improve efficiency could be a key strategy for maintaining service levels while minimizing the financial burden on taxpayers. The study’s findings will likely play a critical role in shaping the future of fire protection in Habersham County.
