Representatives from Baker Tilly gave a presentation of the pros and cons of forming a Fire Territory to the Winamac Town Council and several township trustees at a recent meeting.
A Fire Territory consists of two or more towns or townships that border each other, combined for the purpose of providing fire protection and representation from all parties involved.
Reasons why a Fire Territory is beneficial include a new funding source for the protection of communities that have limited declining resources. It also spreads the cost of fire service over a larger tax base.
Other benefits include improved response time, improved firefighter safety, and a decrease in home owner’s insurance over time from improved ISO fire ratings.
The changes that would come with the creation of a Fire Territory are the ability to obtain more funds from the State than the town council can receive, and all property owners in the Territory will pay the same tax rate for service.
The downside is some people will pay higher property taxes. In creating a uniform tax across the board, some property owners may see a decrease in property taxes while others may see an increase. This would put everyone on one flat tax.
A township is free to leave the Fire Territory whenever they so choose. As long as there are still two entities that stay, the Fire Territory remains. If there are only two taxing units in the Territory and one decides to leave, the Fire Territory would then be dissolved.
