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Fire district tax vote deferred: Rural/Metro, businesses to try to resolve differences

Fri. September 25, 2009; Posted: 10:20 AM
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Sep 25, 2009 (The Knoxville News-Sentinel - McClatchy-Tribune Information Services via COMTEX) -- RURL | Quote | Chart | News | PowerRating -- Knox County officials, the Rural/Metro Fire Department and about a dozen businesses in the Forks of the River Industrial Park informally agreed Thursday night to defer Monday's County Commission vote on a new contract establishing the fire protection tax rate for the district.

Some 10 commissioners, the mayor's chief of staff, the property assessor and trustee attended a meeting at Aqua-Chem in the district to try to work out differences on the rate between Rural/Metro and the businesses. Ten commissioners make up a majority on the commission.

At issue is whether the businesses should even remain in the fire district and pay a contracted rate for fire protection and if they do, what will that rate be.

In a PowerPoint presentation, David Gensterblum, president of Aqua-Chem and spokesman for the businesses, outlined some of the businesses' concerns.

"Businesses in Forks of the River Industrial Park pay on average 300 percent more for fire protection than competitors in other industrial parks in Knox County as well as other industrial parks in the region," he said. "Not all the businesses have been treated the same."

He said some businesses are not paying the full amount of the fire tax, while others are not paying it at all.

"We think we're being forced to subsidize a service that others are able to do on an independent basis," Gensterblum said.

Gensterblum, Mark Munday of Superior Steel and Rick Stone of Sea Ray said Forks of the River businesses would prefer to decertify the district and negotiate their own contracts with Rural/Metro for fire protection.

Rural/Metro bid on a contract through Knox County to provide fire protection service the to district after it said its costs have increased since the district was established in 1992. The initially proposed contract was $807,206 over three years.

Now, however, Rural/Metro's John Mills said the company is willing to consider reducing the contract rate by $183,206. That would make the tax rate for the district lower than the current 23 cents. That amount is paid on top of the $2.36 per $100 of assessed value of regular property taxes paid.

Rural/Metro Fire Chief Jerry Harnish said the costs to operate the Forks of the River fire station is about $700,000, but revenue for that station is only $170,000. He said that station is being subsidized by other Rural/Metro customers.

Rebecca Ferrar may be reached at 865-342-6357.

To see more of The Knoxville News-Sentinel or to subscribe to the newspaper, go
to http://www.knoxnews.com. Copyright (c) 2009, The Knoxville News-Sentinel,
Tenn. Distributed by McClatchy-Tribune Information Services. For reprints, email
tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax
to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave.,
Suite 303, Glenview, IL 60025, USA.
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