Effective Date: January 5, 2026

Approved by: Johnston County Board of Commissioners 

 

Purpose: The purpose of this policy is to establish a fair and transparent cost-sharing model between the county and the town for fire protection services, based on objective metrics such as call volume, real/personal property values, population, and square miles. This model ensures that the financial responsibility for fire protection is distributed proportionally to each party's usage and benefit.

 

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1. Cost Allocation Formula

 

The total cost of fire protection services will be shared between the county and town based on the following weighted factors (Data from July 1st to June 30th of the previous year):

 

• Call Volume (40%): The percentage of total fire department calls originating within the town versus the county. This metric reflects the demand for fire protection services based on incident frequency.
• Real/Personal Property Values (30%): The assessed value of real and personal property within each jurisdiction. This reflects the potential exposure to loss and the resources required for protection. Values will be provided by the Tax Office in July with actual billed values.
• Population (20%): The population of each jurisdiction, as a proxy for the number of individuals served and the associated fire protection needs.
• Square Miles (10%): The geographic area of each jurisdiction, accounting for the amount of territory and infrastructure that requires coverage.

The total cost share for the county and the town will be calculated using the following formula:

Cost Share Allocation = (Call Volume × 40%) + (Real/Personal Property Values × 30%) + (Population × 20%) + (Square Miles × 10%) Each of these factors will be measured annually and adjusted to reflect any changes in the metrics. This calculation will be based on a rolling 3 year average.

 

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2. Cost Share for Fire Apparatus

 

The cost share for fire apparatus will be calculated from the same model identified in Section 1. Cost share will be determined based on the County’s approved apparatus replacement schedule and set cost, each year, based on apparatus type. The annual payment will be allocated in the department's budget based on a loan over 10 years.

 

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3. Cost Share for Fire Stations

 

The cost share for fire stations will be calculated separately, based on the location, usage, and capacity of the fire stations. Cost share will only be considered by the County if staffed with an apparatus and 3 personnel 24/7. Factors considered in this calculation may include:

 

• Consideration of Cost Share: Johnston County FPSD will only cost share on fire stations if the station is built within the municipal limits and provides a direct benefit to the rural district. Cost Share will be calculated for the new stations proposed response district only.
• Operational Costs: Expenses related to the operation of fire stations will be included within the department's annual budget and follow the cost share formula.
• Cost of the Fire Station: Cost share will be for only the calculated cost of the building area utilized by fire and/or EMS personnel. The County’s final cost share determined percentage will be calculated within 60 days of scheduled ground breaking and shall not move plus or minus 5%. Cost share will then be evaluated annually and adjusted based on updated data. Johnston County FPSD cost share financial obligation will be paid in annual installments of no less than 15 years to the municipality on a schedule that coincides with the terms of the loan.
• Total funding provided by Johnston County FPSD as a whole, should never
  exceed 49% of the total construction project cost.
  • If the funding for a proposed fire station exceeds 49%, the cost share will then be calculated by determining the percentage of area within the proposed response area that has an improved response time by 2 minutes or more. Approval by the Johnston County Board of Commissioners is required for all new construction involving cost share participation by Johnston County FPSD.

 

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4. Adjustments and Review

 

• Annual Review: The cost-share model will be reviewed annually, with adjustments made based on updated data (e.g., real/personal property values, population, call volume). Both parties will agree on the updated metrics before
  the revised cost share is implemented.
• Data Collection: Data will be collected by the Johnston County Fire Marshal’s Office with the assistance of other County departments such as GIS, Tax Office and 911. Each contract agency and town will be provided a copy of the data for review prior to agreement of the cost share allocation each year.
• Dispute Resolution: In the event of a dispute regarding the calculations or allocations, both parties agree to engage in good faith negotiations to resolve the issue.

 

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5. Payment Schedule

Payment Allocation: Once the cost share percentages are calculated, the town and county will provide payment to the contract fire protection agency directly.

Adjustments: Cost share will be evaluated each year following the fiscal year.

 

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6. Implementation Timeline

The policy and cost-share model will be effective from [insert date]. The first cost share calculation will be based on data from the previous calendar year, with subsequent reviews and recalculations to occur annually. initially, there will be an agreed upon phase in plan between the Town and County. Below is the breakdown of the phase in plan based on the percentage of increase in funding that is expected from the Town or County. The percentages provided that coincide with the phase in plan is the minimum expected adjustment for each year during the phase in plan.

 

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7. Responsibilities of Each Party

• County: The county will provide data related to call volume, real/personal property values, population, and square miles in the county’s jurisdiction. The county will also collaborate with the town in reviewing and approving the
  calculations of fire station costs.
• Town: The town will review the data provided by the County each year.

 

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8. Approval

This cost-share policy is approved by the governing bodies of both the county and the town and will be implemented according to the terms outlined herein.

 

 

 

The phase in plan below outlines the minimum increase the Town or County must contribute each year, and will be implemented over one to five years, depending on the percentage of increase.

 

Funding Adjustment by Increase Percentage	Minimum Percentage of Funding Adjustment
0-10%: No Phase in plan	N/A
11-20%: 1 year	100%
21-30%: 2 years	50%
31-40%: 3 years	33%
40-50%: 4 years	25%
50% or greater: 5 years	20%