By Jim Hannah
The Cincinnati Enquirer

LUDLOW - Fire protection in this small riverfront city could be in jeopardy if voters don't pass a tax levy on the November ballot.

"Ludlow has always been behind their fire department," Mayor Ed Schroeder said. "And with this guarantee of better service, I think we can get this passed. You will not have to worry about that."

In a recent case involving the city of Bromley, the Kentucky Court of Appeals ruled that collection of funds for fire protection or emergency medical services through a user fee was unconstitutional.

THE QUESTION

"Are you in favor of the levying of a special annual ad valorem tax at the rate of 17.50 cents on each $100 of assessed valuation upon all taxable property within the city of Ludlow in order to provide funding to operate a fire department and to provide for emergency medical services?" "Yes" vote approves the levy. "No" vote rejects the levy.

As a result, Ludlow has stopped collecting such fees, but does not have enough money to pay for fire protection from the city's general fund.

Ludlow City Attorney Chris Mehling said city officials have researched the problem and have concluded that a proposed tax of $1.75 per $1,000 of assessed valuation on all residential commercial, and industrial property is the best alternative. The tax would take effect in January, and would be due each Oct. 31 thereafter.

Hikes and cuts

The city of about 4,400 residents used to fund its fire protection through a user tax of $11.25 per quarter on residential property and $37.50 per quarter on commercial property. So a homeowner paid $45 per year and a business paid $150 per year.

Under the levy on the ballot, a person with a house assessed at $100,000 would pay $175 per year. In general, that's a 288 percent increase for homeowners, and a 16.5 percent increase for businesses.

But some residential property owners may save money under the new system.

Mr. Schroeder said some elderly homeowners may pay close to the same amount or less since the proposed tax is based on property value after the homestead exemption.

And, owners of rental property, who once paid a per-unit user tax with now pay according to the assessed value of the overall property. So, those rates could also go down.

Ludlow residents will pay more, but will get more services under the new system if the tax passes.

The tax revenues would allow the city to provide paid EMT service from 6 a.m. to 6 p.m. Monday through Friday, allowing better service and faster response time. Now, the city must often call for EMT service from adjacent cities.

"We have problems, as most smaller cities do, in paying EMTs to run our squads during the workday," Mr. Schroeder said. "This would provide money to do that."

Move to EMTs

EMTs have a higher level of training than paramedics and are licensed to perform more advanced life support, which can sometimes make the difference in a patient's survival. Many small but growing cities across Northern Kentucky are moving to hire their own EMTs as populations age and require more health services.

If the cost of operating the fire department is actually cheaper than the amount of tax collected, the rate could be lowered by city council. Mr. Mehling said it could never be increased beyond the proposed rate without a vote from the citizens.

Councilman Bill Froehle said not passing the tax could be far more expensive for city residents in the long term.

He said rates for homeowners insurance would double or triple if the city had to close the doors on its firehouse. For example, it now costs an estimated $503 annually to insure a $120,000 home in Ludlow. Premiums would increase to an estimated $1,103 to $1,526 annually to insure the same home if the city lost its fire department, said Mr. Froehle.

In addition, Mr. Froehle said contracting for fire protection from Covington would cost an estimated $450,000 to $500,000 per year.

There is no organized opposition to the levy.

Fire and emergency squad runs increased from 380 in 2000 to 415 in 2001. Mr. Schroeder said that with new condominium development, city leaders say that will continue to increase.

E-mail jhannah@enquirer.com