Fire Authority Expecting Its First Balanced Budget

The Orange County Fire Authority is looking forward to a balanced budget for the first time since its inception in late 1994, thanks in large part to dodging $18 million in back taxes that were forgiven as part of the state budget.

“We’re not out of the woods yet,” authority spokesman Capt. Scott Brown said. “Preliminary indications are that the economy is in good shape and our property tax revenue stream is improving.”

The authority had been saddled with repaying $18 million in back property taxes plus $3.5 million a year in ongoing payments to the state. An opinion by state Controller Kathleen Connell said the authority improperly dodged a 1992-93 shift in property taxes back to the state from local government entities.

A bill by Assemblyman Curt Pringle (R-Garden Grove), added to the state budget, made sure the Fire Authority wasn’t required to participate in the tax shift and wouldn’t have to repay any money.

The good news came as the Fire Authority anticipates operating within its means this year. It had been running up annual deficits of about $4 million that had been coming from reserves.

“That $18 million was a black cloud hanging over us,” Brown said. “Ultimately, it would have led to the closing of fire stations and deferring things like [new] fire engines and equipment.”

But the Fire Authority still is facing possible public protests by disgruntled firefighters, who have been working for more than a year without approving a contract. Last month, the authority board voted to unilaterally impose a package that didn’t raise salaries but increased the portion paid by the authority toward firefighters’ retirement plans.

Brown said the result was a 4.5% to 6.5% increase in overall compensation for firefighters. The Orange County Professional Firefighters Assn. argued that the county is substantially underpaying firefighters relative to comparable fire departments and asked for a double-digit pay increase.