Nehalem Bay Fire & Rescue DistrictFact Sheet
Question & Answers
What is Real Market Value (RMV) vs. Assessed Value (AV) and can it increase?
RMV is what youyour home/property is worth, based on current market conditions in the area as determined by Tillamook County. AV is what the county assess your property value at for the purpose of taxation. In most casesAV is significantly lower than RMV. Under Oregon law, AV can increase up to 3% per year.
What is the permanent tax rate?
In November of 2008 The Nehalem Bay Fire & Rescue District wasformed by a vote of the people with a permanent tax rate of $1.15 per $1,000 of Assessed Value (AV).
Can the permanent tax rate be increased or decreased?
The permanent tax rate can never be increased.Each year under Oregon Budget Law a budget committee, made up of the Board of Directors and five (5)citizens, reviews the budget at public meeting(s), makes recommended changes and then adopts thebudget and tax rate by a motion. The Board of Directors then holds a public budget hearing beforeapproving the budget and tax rate for the year by Board Resolution. The tax rate for the year will only bethe amount needed for the budget. So if less is needed the Board will set the tax rate at only the amountneeded, which can never exceed the permanent rate of $1.15.
When will the Board levy less than the $1.15?
Since the stations are not yet built and the final financeamount has not yet been determined, It’s anticipated the Board will need to continue to Levy the $1.15 forthe next fiscal year. By the beginning of the budget process for 2013/14 fiscal year the Board shouldknow true operating costs, and can begin to adjust the amount levied to offset the increase in the AVamount for the 2013/14 fiscal year. For example, if the AV goes up 3% and it’s found we only need aportion of the expected revenue for the 2013/14 fiscal year the Board will decreased the amount levied.
Why was $1.15 used for a permanent tax rate?
In 2005 a task force was formed with citizenrepresentatives from the Neahkahnie Water District, Nehalem Rural Fire District, the Cities of Wheeler,Nehalem and Manzanita to study the issue with the fire service. They made a recommendation to theCities to hire a full time Fire Chief and Training Officer but felt they needed someone with experience inthe fire service to really identify and address the issues and figure out the cost. Emergency ServicesConsultants, Inc. was hired by the entities in 2006 and completed a “Nehalem Bay Fire Services Task Force Cooperative Effort Feasibility Study”, which was available for public review at each city hall. TheESCI study identified deficiencies in the city fire departments. The study came up with multiplesuggestions. Since everyone paid different amounts for fire service it was decided the best solution wasthe formation of a new fire district so everyone paid the same amount and establish a stable fundingsource that could address all the issues. In late 2008 an “Economic Feasibility Study” was done, whichincorporated the recommendations of the ESCI Study. Those included having to build two fire stations,hire a full time Fire Chief, Training Officer, and a part-time administrative assistant, and replace apparatus
March 7, 2011