Background:

Overview of Fire Protection Districts.

Fire protection districts (districts) are created to provide fire prevention, fire suppression, and emergency medical services within a district's boundaries. Districts are governed by a board of commissioners consisting of either three or five members. The districts finance their activities and facilities by imposing regular property taxes, excess voter-approved property tax levies, and benefit charges. Generally, districts serve residents outside of cities or towns, except when cities and towns have been annexed into a district or when the district continues to provide service to a newly incorporated area.

Annexation of a City by a Fire Protection District.

A city or town adjacent to a district may be annexed to such a district provided the population of the city or town does not exceed 100,000. Such annexation is initiated through the adoption of an ordinance by the legislative authority of the city or town approving annexation into the district and stating a finding that the public interest is served by such annexation. The annexation must then be authorized through the concurrence of the district's board of fire commissioners. Following such approval of the annexation, notification must be sent to the governing body of the county or counties in which both the district and city/town are located. The pertinent county legislative authorities must then call a special election in the city or town to be annexed, as well as the district, so as to allow the voters in each jurisdiction to determine the annexation issue. The annexation is complete if a majority of voters in each jurisdiction vote in favor of annexation.

In accordance with specified limitations, both the district and the city are authorized to levy taxes related to district fire protection services.

After the passage of three years following a district's annexation of a city, the city has the option of withdrawing from the district. Such withdrawal requires that the legislative body of the city approve a resolution proposing the withdrawal which is then submitted for voter approval at the next general election.

Annexation of a "Partial City" By a Fire Protection District.

A district is authorized to annex part of a city or town that is located in two counties (partial city annexation). Such annexation must meet specified substantive and procedural requirements. The substantive requirements are as follows:

the part of the city to be annexed must be adjacent to the boundaries of the district;
the population of the proposed annexation area must be greater than 5,000 but less than 10,000;
that portion of the city to be annexed must lie entirely within only one of the two counties; and
that portion of the city to be annexed must contain at least 80 percent of the population of the entire city.

The procedural requirements for the completion of a partial city annexation are the same as for the annexation of an entire city, including the approval of the governing bodies of the city and the district, as well as voter approval.

Summary of Bill:

Tax Levies Following Annexation: Allocation of Preexisting Debt Related to Fire Protection.

Following the annexation of a city, town, or partial city that has preexisting, fire protection-related indebtedness, a fire protection district is granted the discretionary authority to impose differing tax levies upon various areas within the district in order to allocate responsibility for the payment of such indebtedness. A district's authority to allocate the tax burdens within different areas of the district is subject to the following terms and conditions:

The outstanding indebtedness of the annexed municipality must have been voter-approved and incurred as the result of fire protection related capital improvements.
Any difference in the amount of the tax levy imposed upon an annexed area must relate to the preexisting debt of that area.
In those areas that were within the jurisdictional boundaries of the district prior to annexation, the tax levy may continue to be based upon the indebtedness of the district as it existed prior to annexation.
The commissioners of the fire district must determine the proposed allocation of responsibility for the indebtedness of the areas encompassed by the district prior to communicating an annexation proposal to the pertinent county or counties.
If a city, town, or partial city intends to be annexed into a district, it must do so by an ordinance that specifies how the preexisting indebtedness of both the district and the proposed annexation area will be allocated in the tax levy process.