MEMORANDUM

DATE: September 26, 2002

TO: Timothy Navarre, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

FROM: Shane Horan, Director of Assessing

SUBJECT: Ordinance No. 2002-38 Providing for a partial exemption from real property taxes on residential property owned and occupied by certain volunteers who provide firefighting or emergency medical services to the Borough.

The purpose of this memorandum is to provide you with an overview and background of this ordinance.

KPB Code 5.12.115 currently provides a residential real property tax exemption on the first $10,000 of assessed value that is owned and occupied by the owner of record as the owner's primary residence and permanent place of abode. In addition, the owner of record must have occupied the property for at least 183 days of the previous year. If owned less than 1 year, the owner needs to have been in ownership on January 1 of the year in which the exemption is sought and intends to meet the occupancy requirements. In 1998, the borough code was amended so the owner of record is no longer required to file an updated application each year. The owner, however, is to notify the Assessor's Office if there is a change in ownership or occupancy of the residence.

The State Legislature recently passed SB 4, which authorizes municipalities to provide an exemption from taxation on up to $10,000 of the assessed value for certain qualified volunteer firefighters and emergency medical service providers and provides for an effective date of January 1, 2003.

The essential elements for meeting the requirements of volunteer status as proposed in Ordinance 2002-38 are as follows:

1) Current and active volunteer of a State of Alaska recognized First Responder Service, registered Fire Department with the State Fire Marshall or a State of Alaska certified Ambulance Service located within the Borough and

2) if providing volunteer firefighting services, be certified as a firefighter by the Alaska

Department of Public Safety or

3) if providing volunteer emergency medical services, be certified under AS 18.08.082.

A copy of SB 4, AS 18.08.082 and .084 are attached for your reference.

If two or more individuals are eligible for an exemption for the same property, no more than two exemptions may be granted. As a result, the maximum allowable exemption for any one residence under Code would be $30,000. ($10,000 residential exemptions plus up to two $10,000 volunteer exemptions).

The Fire or EMS Chief for each department will submit names of eligible volunteers to the KPB Assessor's Office along with completed applications annually, on or before January 15.

"Active volunteer" as proposed in this ordnance means a person meeting the training, response, and participation criteria as established by each recognized First Responder Service, registered Fire Department and/or state certified ambulance service. The criteria established by each department that defines "active volunteer" shall be on file with the Kenai Peninsula Borough assessing department.

Attached please find a proposed application form.

Sue Hecks, EMS Coordinator, Kenai Peninsula Emergency Medical Services Council, indicated to me that as of September, 2002 there are 336 total EMS, EMS and Fire and, Firefighters of which an estimated 185 are property owners. (185 X $10,000 = $1,850,000 @ 6.5 Mills (.0065) = $12,000)

Please Note: Borough Code currently provides a $10,000 residential real property exemption on the first $10,000 of assessed value under KPB 5.12.115 that is occupied by the owner of record as the owner's permanent place of abode. The cities of Homer, Soldotna, Kenai, Seward, Seldovia, and Kachemak City, however, have not adopted this "10K" exemption.

In regards to the proposed $10,000 residential exemption for volunteers, the City of Homer has adopted Ordinance 02-32, enacted August 26, 2002, with an effective date of January 1, 2003, authorizing exemption for volunteer fire fighters and providers of emergency medical services. A copy is attached.

Seward has been provided information and has indicated their interest and intention of drafting some language soon to be introduced.

Seldovia will most likely take no action this year.

Kenai has paid staff only with no volunteers.

Soldotna has few volunteers but has taken no action to date.

Kachemak City has not taken any action to date.