MORGANTOWN — After several months of work, Butler County is on the verge of adopting an ordinance that could significantly change how the county’s volunteer fire departments are funded.

The Butler County Fiscal Court recently held the first reading on an ordinance that would regulate the collection of annual membership fees from property owners.

As currently drafted, an annual $25 membership fee would be added to the county property tax bills of most property owners, with the money funding the volunteer fire district where a given property is located.

The Butler County Sheriff’s Office can retain a 4.25 percent collection fee on each individual membership fee collected, while each fire district would remit a 1 percent administrative fee to the the Butler County Property Valuation Administrator’s Office.

Though the fee would be included on the tax bill, the ordinance would allow property owners to opt out upon request and have their fee refunded.

Butler County Judge-Executive David Fields said that 73 Kentucky counties have a fee-collecting regulation in place similar to what is under consideration in Butler County, where the proposed ordinance is similar to one in effect in Edmonson County.

Right now, the county budgets $10,000 annually for the volunteer fire departments in each of the five county fire districts the ordinance would affect. The county is also responsible for paying insurance for each district, an obligation that would be transferred to the fire districts in a proportionate amount if the ordinance is enacted.

Officials have documented 9,123 parcels of property in Butler County, raising the possibility that fire departments could get a larger infusion of revenue under the ordinance.

“It’s taken us close to a year to get this far,” Fields said. “We’ve all set this up to help the fire departments.”

On Thursday, the fiscal court and the Morgantown City Council held a joint work session with representatives from each county fire district to discuss possible changes to the ordinance and how it may potentially affect fire service.

Morgantown Mayor Billy Phelps expressed concern that the city could suffer financial losses if a large number of property owners in areas covered by the Morgantown Fire Department opt out and receive refunds, leading him to ask whether the county would reimburse the city should that occur.

“At the end of the day, the city wants to work with the county and we want to have a good working relationship,” Phelps said.

Fifth District Chief Rich Henderson, who also serves as the county’s emergency management director, has been an early advocate for the fee-collection ordinance.

Henderson sees the potential revenue infusion resulting from membership fees as a way to purchase newer equipment, which would have the effect of improving service and eventually resulting in a lower ISO score and lower insurance premiums for property owners.

“There’s only so many times you can apply for a grant,” Henderson said. “(The ordinance) allows us to be able to purchase the equipment necessary to sustain the fire department.”

— Follow courts reporter Justin Story on Twitter @jstorydailynews or visit bgdailynews.com.