What Felton Voters Need to Know About the Felton Fire Property Tax

By Mary Andersen

Ballots are arriving in mailboxes this week. Here is what the vote means and what the official record shows about the choices before the community.

Property owners in the Felton Fire Protection District are being asked to approve a benefit assessment of approximately $700 per year for a single-family home — up to $32,000 annually for larger commercial properties. A yes vote would authorize the district to add roughly $1.708 million in annual assessment revenue on top of its current $1.09 million budget, moving Felton away from the traditional volunteer firefighter model and toward a paid staffing model outlined in the district’s draft projections. A no vote is a vote against this specific funding plan — not against fire protection for Felton. 

At the October 2025 board meeting, district officials acknowledged that a more affordable parcel tax measure could follow if this assessment fails — making clear that this ballot measure is one proposed solution, not the last possible chance to fund fire service in Felton.

Since the campaign began, residents have been told that Felton faces two options: pay approximately $700 per year to fund an independent district with $2.8 million in annual revenue, or watch the Felton station dissolve. The official record presents a more complex picture.

The Local Agency Formation Commission of Santa Cruz County (LAFCO) — the state-created body with legal authority over the formation, consolidation, and dissolution of special districts — conducted a comprehensive governance review and identified 12 distinct options for Felton Fire Protection District. Complete dissolution is not among them.

Joe Serrano, Executive Director at LAFCO, stated: “LAFCO outlined several viable alternatives in last year’s Felton FPD Governance Report, and we originally encouraged Felton Fire to explore those options in parallel with its assessment effort. However, Felton FPD decided to focus on the assessment process only at this time.”

Zayante, Ben Lomond, and Boulder Creek chiefs confirm there have not been sufficient conversations with their respective districts for Felton Fire to assert that any potential merger or contract discussion is off the table.

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Three Claims Examined

Claim 1: The only way to keep Felton Fire independent is a $2.8 million annual budget. Every neighboring district operates at half that cost or less, including Boulder Creek, which covers a larger geographic area, handles more calls, and operates from two stations.

Claim 2: If the assessment fails, the Felton station disappears. None of the 12 LAFCO options include shutting down the Felton station. Every fire chief in the region and the county itself have acknowledged that the Felton station is critically positioned and no plans are in place to close it under any scenario.

Claim 3: Merging with the county would double residents’ rates. CSA 48 already has assessment taxes totaling $367 per single-family home per year — approximately half the proposed Felton assessment rate. Zayante, Ben Lomond, and Boulder Creek merger or contract options range from $0 to $290 annually.

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What the Current Budget Shows

Before evaluating any of LAFCO’s options, it is worth establishing what Felton Fire already has. The district’s adopted FY 2025-26 budget shows total revenue of $1,088,724 — with approximately $1,010,456 coming from property taxes residents pay today. This budget is fully balanced at that amount with no new assessment required.

Current Felton Fire Budget — FY 2025-26 Adopted	Amount
Property tax, current secured	$989,243
Property tax, current unsecured	$21,213
Other revenue (interest, rents, grants, fees)	$78,268
Total current revenue	$1,088,724
Salaries and benefits	$623,880
Services and supplies	$428,150
Fixed assets	$36,694
Total current expenditures	$1,088,724

The district is not starting from zero. It already collects approximately $1.09 million annually, and its current adopted budget — which funds a paid chief, paid firefighters and staff, workers’ compensation, PERS retirement contributions, and full operational costs — is balanced within that existing revenue. The proposed new assessment would add approximately $1,708,422 on top of this, bringing the district to roughly $2.8 million annually.

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What the Proposed Assessment Would Actually Fund

The district’s own draft staffing projections describe a fully paid staffing model — one that differs significantly from the volunteer-centered approach used by every other fire district in the San Lorenzo Valley.

These costs grow over time. According to the district’s Proposed District Staffing Cost document (see below), the chief’s total cost alone climbs from $223,426 in 2026 to $256,390 by 2030. By 2030, three captains combined are projected at $462,214, three engineers at $388,728, and an administrative director at $144,733 — before adding firefighter stipends, insurance, fuel, maintenance, radios, and all other operational costs.

This measure is not simply about keeping a volunteer firehouse open with a few paid positions added. It is about financing a paid staffing structure that grows through 2030 — with 88% of new assessment revenue allocated to salaries before a single dollar reaches apparatus, equipment, or infrastructure.

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LAFCO’s 12 Governance Options — In Ranked Order

The options below fall into two broad categories. Merger means Felton FPD would be absorbed into another district — bringing new leadership, new administration, and a unified organization. Contract means Felton FPD stays legally independent with its own elected board, but pays another district to handle day-to-day operations. Both approaches can deliver reliable service; the difference is whether Felton retains local governance or folds it into a nearby agency.

Felton’s existing $1.09 million in property tax revenue transfers with the parcels under any reorganization. Since the district currently operates a balanced budget within that revenue, merger with a comparable volunteer-centered district may require no new assessment whatsoever. However, if Felton were to merge with a district that already carries an assessment or parcel tax, Felton property owners would be subject to that district’s existing rate.

The other SLV fire districts have indicated they would not assume Felton’s PERS (retirement); however, the Felton Fire board voted to begin terminating its CalPERS contract with funding allocated to buy out that liability, thereby removing the primary obstacle to merger.

#1 Ranked Option — Merge with Zayante Fire Protection District. Tax: $290/year
#2 Ranked Option — Merge with CSA 48 / County Fire / CAL FIRE. Tax: $367/year
#3 Ranked Option — Merge with Ben Lomond Fire Protection District. Tax: $0/year
#4 Ranked Option — Merge with Boulder Creek Fire Protection District. Tax: $41/year
#5 Ranked Option — Contract with Boulder Creek Fire District. Has not been negotiated
#6 Ranked Option — Contract with Zayante Fire Protection District. Has not been negotiated
#7 Ranked Option — Stay Independent as a Rebuilt Standalone District. Tax: see scenarios below
#8 Ranked Option — Contract with City of Santa Cruz Fire Department. Has not been negotiated
#9 Ranked Option — Contract with CAL FIRE Directly. Has not been negotiated
#10 Ranked Option — Contract with Scotts Valley Fire Protection District. Has not been negotiated.
#11 Ranked Option — Contract with Ben Lomond Fire Protection District. Has not been negotiated. Ben Lomond has indicated willingness to contract under different Felton leadership conditions.
#12 Ranked Option — Merge with Scotts Valley Fire Protection District. Has not been negotiated

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What a Felton Standalone Future Could Look Like

The salary structure outlined in the district’s draft projections (see below) is not a requirement of standalone operation, yet it is one staffing approach among several the district could pursue. Using the district’s own adopted budget numbers as the baseline, the following models illustrate what a standalone Felton Fire could look like at different staffing levels. These are estimates based on the district’s published cost figures and comparable neighboring districts, not official projections. 

Model A: One paid chief, robust volunteer force 

Using the district’s real FY 2025-26 cost baseline a chief-and-volunteer model runs approximately $550,000-$700,000 in total annual operating cost. This fits entirely within Felton’s existing $1.09 million revenue, leaving $300,000-$450,000 annually for capital reserves and apparatus replacement. No new assessment is required. 

Model B: Paid chief plus one paid captain, robust volunteer force 

Adding one full-time paid captain produces a stronger command and training structure while remaining well within the volunteer model used elsewhere in the valley. Total operating cost of approximately $615,000-$800,000 annually still fits within existing property tax revenue, leaving approximately $210,000-$395,000 for capital reserves. A modest voter-approved parcel tax of $150-$200 per single-family home would provide additional capital headroom. 

Model C: Chief, battalion chief, and two paid captains, robust volunteer force

This is a fully developed paid leadership tier. Total operating cost of approximately $900,000-$1.15 million is near the upper edge of existing revenue. A voter-approved parcel tax of $250-$300 per single-family home funds this model with reserves. 

None of Models A, B, or C require the community to choose between a $700 annual charge and losing their fire station. None result in the Felton station closing. None produce the doubling of rates the community has been warned about. All could be put before voters as a transparent parcel tax requiring genuine two-thirds community consensus.

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The Felton station has been serving this community since 1935. Under each of LAFCO’s top-ranked options, and under any of the standalone models above, it would continue to do so. Everyone across this debate — yes voters, no voters, and the undecided — agrees that Felton deserves reliable, locally controlled fire protection. The ballot now in your mailbox is one proposed answer to that question. The record suggests there are others worth considering.

Sources: Santa Cruz County LAFCO, Countywide Fire Service Review and Governance Options Report; Felton Fire Protection District, Adopted Budget FY 2025-26; Felton Fire Protection District, Adopted Budget FY 2024-25; Felton Fire Protection District, Draft Five-Year District Staffing Pay Scale; SCI Consulting Group, FY 2026-27 Engineers Report; SCI Consulting Group, Preliminary Assessment Roll FY 2026-27; Interview with Felton Fire Interim Chief, April 2026; Statements from Ben Lomond and Zayante Fire Chiefs April and May 2026; Felton Fire board meeting recordings; Felton Fire board minutes; LAFCO Executive Director Joe Serrano statement. Follow ongoing coverage at slvpost.com/felton-fire-tax. Contact: mary@slvpost.com.

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