The Murrells Inlet-Garden City Fire District Monday announced that it had received an improved Public Protection Classification that puts the district in the top 3 percent nationally, increasing the likelihood of lower fire insurance rates for property owners, but also raising questions in advance of a March referendum on raising the district’s millage rate cap about the district’s ability to continue to fund fire protection at such a high level in the face of mounting deficit spending.
The Insurance Services Office or ISO notified the district in a letter dated January 26th that its classification had improved from a 3 to a 2.
The district earned nearly 88 credit points, just short of the 90 points necessary for a 1 classification.
Only 60 fire departments in the nation are classed as a 1. The new rating will be effective May 1, 2015.
Fire insurance premiums are tied to ISO classifications, so the improved classification for the district should result in even lower premiums for property owners.
“We’re proud of achieving such an excellent ISO rating and the fact that it will benefit property owners through lower insurance rates. It’s reasonable to assume that if we had the fourth station built, based on our very high score, the district could very possibly achieve a class 1,” MIGC Fire District Chairman Al Hitchcock said. “However, it’s important to realize that this improved ISO rating was achieved with one of the lowest millage rates in the state, one that has caused big deficit spending in order to achieve such a high level of fire protection, depleting our needed financial reserves.”
It is estimated that the district will generate nearly $900,000 in budget deficits from 2013 through this year.
From 2010 through 2014, the district experienced a 42 percent increase in fire responses.
According to information from the S.C. Association of Counties, the 10 mill tax rate for the district is near the bottom of all fire districts in the state, ranking 51st out of the 61 districts. The average tax rate of all districts is 22.3 mills.
“The district and our firefighters have worked hard to provide the best fire protection possible. The problem we face is that our current level of funding will not sustain such top ISO ratings, much less build and operate a fourth station. The district will run out of money,” Fire Chief Norman Knight said. “In reality, our ability to continue to provide top notch fire protection, save property owners on insurance, and build the needed station will be in the hands of voters next month.”
On March 17th a referendum will be held in the district on whether to raise the district’s millage cap from 10 mills to 14 mills to increase fire protection funding and to build a station on McDowell Shortcut Road in Horry County.
Last year, legislation that would have raised the millage cap was successfully vetoed by Gov. Nikki Haley. In her veto message, Haley called for allowing district voters to decide whether to raise the millage cap.
Last November, the district’s board voted to conduct the referendum, which it must pay for.
The MIGC Fire District is divided by the Horry-Georgetown County line, so both the Georgetown and Horry County boards of elections will conduct the referendum.
