Lacey Fire District 3 continued its push on the value of a proposed $98.3 million bond measure in the latest in a series of informational videos ahead of the Nov. 3 General Election.
Fire Chief Jennifer Schmidt broke down the funding system behind Washington property tax limits that prevent the district from paying for fire stations, as well as equipment through its regular budget.
The third video in the series was released on July 15.
Schmidt said state law splits fire district funding into two categories, one for routine operations and another for long-term capital projects.
Lacey Fire District 3 (LFD3) covers fuel, medical supplies, training and salaries for firefighters and paramedics almost entirely through two voter-approved property tax measures, a regular fire levy and a Medic One EMS levy.
Growth in that levy revenue caps out at 1 percent a year under state law, plus revenue from new construction, regardless of changes in property values.
Equipment and gear costs typically rise 3 percent to 4 percent annually, a gap that squeezes the LDF3's budget year after year.
A levy lid lift voters approved three years ago has eased some of that pressure on routine expenses. However, the additional revenue still cannot finance major capital projects because it remains subject to the same statutory limit.
Schmidt compared it to household budgeting. A paycheck can cover groceries and minor repairs, she said, but a new roof or a full remodel takes financing beyond what a monthly budget can absorb.
Building up cash reserves over several years isn't a practical fix, either, Schmidt said, since construction costs tend to often climb faster than a capped levy can save. Waiting years to fund big projects could cost more than the interest on a bond.
"This is why we utilize a capital facilities bond. Under Washington law, a bond is a mechanism specifically designed for voters to authorize dedicated funding for long-term infrastructure. It allows us to secure the necessary funding upfront to rebuild aging stations, paid back over a fixed period of time," Schmidt said.
State law prohibits bond proceeds from being used for salaries or other daily expenses, limiting those funds to voter-approved capital projects, according to the district.
Schmidt said separating routine revenue from bond funding allows the district to preserve staffing and emergency response while financing projects outlined in earlier videos. That includes a new fire station north of Interstate 5, relocation of Station 32 to the Yelm Highway corridor, a regional training facility and a permanent logistics warehouse.
The district plans to release a fourth video outlining the proposed project list before voters decide on the bond measure in November. More information, including a bond estimate calculator, is available here.
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OlyBlues
Chief Schmidt should be posting a spreadsheet of all costs, expenses and revenues for Lacey FD. What are the overhead costs and positions of LFD command staff? What are the salaries of Lacey Firefighters who are working 8 shifts per month and represented by Teamsters? Most all LFD equipment fire top shelf, the newest and fanciest gear, equipment, etc. News to Chief Schmidt: try living within your means. If the department's budget does not support excessive raises for your firefighters then do not reward their union and come begging to taxpayers to bail you out. Time to start living within your means.
Thursday, July 23 Report this
MartyKenney
I agree with OlyBlues, without any meaningful budget numbers, I don’t feel the need to support capital expenses at all. I build houses for a living, general house cost is $400-$700/sq ft. Why can’t a new fire station be in this same budget range? Who are the contractors building these luxurious training facilities and new stations? How much profit are these private contractors skimming off the top? If they can show me building costs, I might think about voting yes, until then it’s a big NO.
Thursday, July 23 Report this
HotTractor
Marty, you say you build houses, yet you can't figure out how a fire station could cost more than the price of a house, that it would have unique needs that a house doesn't have. Makes me wonder just how good a builder you actually are. BTW, i do agree the fire departments have had a free reign on the purse strings and need to become more efficient.
Thursday, July 23 Report this