About 6,000 residents in Felton Fire Protection District could soon face proposals for a new tax. (Stephen Baxter – Santa Cruz Local file)

FELTON >> Felton residents may soon face a proposal for a new tax as local regulators pressure Felton Fire Protection District leaders to make a plan for the embattled district’s future — and suggest merging with another fire agency is its best option. 

Felton Fire, an independently governed district that provides emergency services to about 6 square miles, has faced years of mounting pension debt, decreasing volunteers, and a rotation of chiefs. 

Last year, Felton Fire contracted with Ben Lomond Fire District to respond to 911 calls and helm training. But in May, Ben Lomond Fire leaders prematurely ended the contract after its chief alleged a hostile work environment. Felton Fire is now led by a part-time, volunteer interim chief.

Now, a local agency that regulates the boundaries of cities and special districts is urging Felton Fire leaders to make a plan. The Local Agency Formation Commission of Santa Cruz County on July 25 released a report on possible next steps for the agency, including raising more money for paid firefighters and being absorbed by another fire district. 

In either case, Felton Fire property owners would likely need to pay a new tax.

Felton Fire collects about $1.1 million annually, the report stated, and “lacks adequate funding to provide an appropriate level of fire protection and emergency medical services to its respective community.”

Ahead of a Felton Fire board meeting Friday, district leaders said they will likely pursue a tax proposal in hopes of keeping the district independent.

“No matter what, change is coming, and unfortunately change looks like money,” said Interim Chief Issac Blum in an interview.

Report

A LAFCO report outlines the options for the future of Felton Fire. (LAFCO of Santa Cruz County)

A LAFCO report ranks options for the future of Felton Fire. (LAFCO of Santa Cruz County)

The issues facing Felton Fire, including low volunteerism and mounting costs, challenge similar fire districts across the country, said LAFCO Executive Director Joe Serrano.

Within Felton Fire, “you’re struggling with finances, you’re struggling with volunteers, and you also don’t have a full-time fire chief,” Serrano said. “These are all concerns that I’m hoping that they can address.”

With the report, Serrano said he hopes to give residents and Felton Fire’s board of directors information to decide the district’s future.

The LAFCO report ranks 12 options, including:

• Dissolve to merge with another district.
• Remain an independent special district.
• Hire another district for service.

The report’s four top-ranked options are mergers with nearby districts:

• Zayante Fire.
• County Service Area 48, known as Santa Cruz County Fire.
• Ben Lomond Fire.
• Boulder Creek Fire.
  

Zayante Fire adjoins Felton Fire and last summer responded to scores of 911 calls in Felton Fire’s service area. In June, the Zayante Fire Board of Directors renewed a 2024 reciprocal service agreement for each district to pay for emergency response from the other.

CSA 48 covers much of the North Coast and San Lorenzo Valley. Last year, the Pajaro Valley Fire District applied to be absorbed by CSA 48. The merger has not been finalized.

CSA 48 is governed by the Santa Cruz County Board of Supervisors and is served through a contract with Cal Fire, but could become an independently governed special district. County staff, CalFire and LAFCO are researching the proposal, which could allow the new district to hire its own firefighters. The process would likely take more than a year, Serrano said.

If leaders of Felton Fire and another agency pursue a merger, LAFCO would require a detailed study on the potential call response times and the financial sustainability of the district, before voting on the merger. If more than 25% of residents or 25% of landowners in either district protest the annexation, it would go to a special election.

The LAFCO report gives Felton Fire until Oct. 6 to choose an option. If Felton Fire leaders choose to remain an independent district, they must submit a detailed operation and finance plan.

If Felton Fire doesn’t have a plan by Oct. 6, LAFCO could begin the process of merging Felton Fire with another agency. But that process would still legally require cooperation from Felton Fire and the absorbing agency, Serrano said.

“This is not a hostile takeover,” he said. “This is not something LAFCO can force on them.”

Blum, the interim fire chief, said he wants the agency to remain independent. Since the end of the contract with Ben Lomond Fire, Blum said, Felton Fire has gained volunteers and has not relied on other agencies to respond to its calls. But he said he agrees with the report’s findings that depending solely on volunteers is not sustainable.

“I felt kind of vindicated for my understanding of where we’re at with things,” he said.

Jim Anderson, who sits on the Felton Fire Board of Directors, said he wants to ask voters to support Felton Fire with a new tax, but that the district may have to eventually pursue a merger. “If the public is not interested in supporting us in another fashion, then it pretty much gives us no choice.”

Anderson is also a LAFCO commissioner, and said he would abide by the LAFCO attorney’s guidance whether to recuse himself from decisions involving Felton Fire.

Possible new tax

Whether Felton Fire remains an independent district or merges with another, residents will likely consider a new tax for fire service.

If Felton Fire merges with another agency, residents would inherit any parcel taxes or assessments those districts charge. For example, a merger with Zayante Fire would mean Felton Fire residents would pay a special tax approved by Zayante Fire voters in November 2024. That tax charges $50 for a vacant parcel less than 5 acres, $100 for a vacant parcel more than 5 acres, and $290 for any parcel with homes or other buildings.

If Felton Fire is absorbed by CSA 48, residents would pay a benefit assessment that would range in price based on the property size and buildings. The assessment is about $367 for a typical single-family home, according to the report.

If Felton Fire leaders decide to stay independent and hire on its own staff, they’d need to propose a new tax — either a parcel tax or a benefit assessment. Either tax can either be assessed as a flat rate or differ by property.

A parcel tax would need 66% voter approval, and could be considered during the June 2026 election.

A benefit assessment can be proposed at any time. Property owners cast mail-in ballots, and their votes are weighted based on the amount they would pay. District residents who don’t own property would not vote.

Felton Fire may not need a new tax if it remains independent but contracts with Boulder Creek Fire Protection District or Zayante Fire to provide services, the report stated.

Meeting Friday

Friday, Felton Fire directors are set to meet and discuss the report. A decision will require input from residents, and would likely be made at a future board meeting, Blum said.

“No matter what happens, there is going to be a financial burden to that, or obligation,” Blum said. While consolidation is an option, “you’re going to lose the ability to have your own voice heard within your community,” he said.

Sept. 3, Serrano is set to update LAFCO commissioners on the situation.

He said he wants to reassure residents that his agency isn’t going to unilaterally make a decision on Felton Fire’s future. “I understand we’re talking about people’s community and their community identity,” he said.

Correction: This story was updated to reflect Jim Anderson’s position on the Felton Fire Board of Directors.

Read more

• Felton Fire loses chief, service contract with Ben Lomond — May 14, 2025
• Felton Fire aims for new contract with Zayante Fire — May 30, 2025

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