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May 29, 2003 Page 141 There was discussion regarding the proposed funding ($26,000.00) for Cabarrus Arts Council, specifically the previous phase-out of County funding to non-profit organizations. The Board also discussed the $500,000.00 allocation for FY 2003 and FY 2004 to Cannon Memorial YMCA for the aquatic facilities at the new YMCA. Board members generally agreed that no County funds will be paid to the YMCA until the issues involving the meal site operated by the Department of Aging at the Kannapolis YMCA are resolved. Harrisburg Fire District Chief Charles M. Greene of Harrisburg Volunteer Fire and Rescue reviewed the department's budget process for FY 2004 and presented the request for a three-cent increase (0.0550 to 0.0850 cents) in the Harrisburg fire tax rate. He stated the department had spent its cash reserve funds down to $86,204.00 and needed the additional tax revenue to hire six new firefighters and to replace a ladder truck in order to maintain an adequate level of service in the district. Chief Greene advised that the fire department's Board of Directors had approved the proposed budget with the requested three-cent tax increase. He also referenced a letter from Mayor Tim Hagler stating the Harrisburg Town Council's support of the requested fire tax increase and the need for that increase in order to move forward with plans to consolidate the Fire and Rescue Department into the Town's operations. Commissioner Carpenter, liaison to the Town of Harrisburg, outlined the following points for consideration in forming a Harrisburg Municipal Fire Department: (1) 10-year contract or agreement between Harrisburg Council and County Commissioners that would stay in place until all areas of the fire district are annexed into the Town of Harrisburg; (2) Merger to start on September 1, 2003; (3) With this merger, establish an advisory board of seven members, including two ex officio members (Fire Chief and County Fire Marshal), three appointments by the Harrisburg Council and two appointments (one county commissioner and one resident of the unincorporated area of the district) by the County Commissioners to advise on operations, planning and budgeting for Harrisburg Fire Department and fire district and report to the Harrisburg Council; (4) Main area of concern for consolidation to form new department is to keep the fire tax of the Town of Harrisburg and the unincorporated area of the fire district the same until all areas of the district have been annexed. Commissioner Carpenter made a motion, seconded by Commissioner Carruth, to approve the request for an increase of three cents in the Harrisburg fire tax rate with the formation of a Harrisburg Municipal Fire Department and for the County Attorney to proceed with drafting the necessary agreement between Harrisburg Council and the Board of Commissioners for establishing the municipal fire department. There was lengthy discussion regarding the requested increase in the Harrisburg fire tax. Issues addressed included the following: (1) Plans that are in process to establish a municipal fire department and discussions that have occurred during the past year between the County and the Town of Harrisburg concerning this issue; (2) Volunteer firefighters versus paid staff; (3) Comparison of Harrisburg Fire and Rescue with other departments, including population, number of firefighters, square mileage, etc.; (4) Railroad track splits district, thus necessitating the operation of two stations; (5) Additional growth that will occur in the unincorporated area of the district as a result of the opening of 1-485; (6) Increased tax base from growth in the district will produce additional revenue for the department; and (7) Improved insurance rating of the district by the North Carolina Department of Insurance would result in lower property insurance premiums for residents within the district. The Board also discussed the requirement that a public hearing be held prior to setting any fire tax rate. Commissioner Privette made a motion, seconded by Chairman Freeman, to postpone consideration of the Harrisburg fire tax issue until the June 16tn meeting in order to have a proposed agreement concerning the establishment of a municipal fire department at that time for consideration by the Board. Mr. Hartsell questioned the Board and Harrisburg Town officials regarding issues associated with a proposed agreement to establish a municipal fire department. He addressed the Town's levy of a fire tax within the incorporated area, the County's assessment of an equitable fire tax in the unincorporated area, the provision of fire services under contract to the unincorporated area of the district and transitional requirements for the period from September 1, 2003 to June 30, 2004. Mr. Mike Brown, member of the Harrisburg Town Council, reviewed the Town's plans for the operation of the municipal fire department and for funding the department by levying a fire tax within the Town limits beginning