On November 3, 2009, the voters within City of Spokane will be asked to vote on a ballot proposition that would authorize the City to issue no more than $33,000,000 of bonds to pay costs to acquire new and improve existing firefighting and lifesaving apparatus, vehicles and equipment, construct new and renovate existing fire stations and facilities, modernize Fire Department technology and data/communication systems and equipment, and acquire land for future fire stations and facilities.
Frequently Asked Questions (FAQ) about the 2009 Fire Bonds
How will the money from the 2009 Fire Bonds be used?
o The money from the 2009 Fire Bonds will be used to pay costs to acquire new and improve existing firefighting and lifesaving apparatus, vehicles and equipment, construct new and renovate existing fire stations and facilities, modernize Fire Department technology and data/communication systems and equipment, and acquire land for future fire stations and facilities. Listed below is an estimated breakdown of how the money will be spent:
Apparatus Protective Equipment Facilities Misc. Equipment Subtotal Contingency (3% - excluding apparatus) Sales Tax (8.7%) Bond issuance cost Total
$ 10,895,000 $ 2,084,000 $ 10,410,000 $ 6,110,000 $ 30,057,120 $ 558,120 $ 2,614,969 $ 326,721 $ 32,998,810
o Originally, the Fire Department identified capital improvement needs of approximately $50 million. However, due to the economy, the Fire Department reduced the proposed 2009 Fire Bond amount by $17 million or 34% from the total identified needs.• Why isn’t the City financing the proposed Fire Department capital improvements from the General Fund Budget?
o The City’s general fund budget provides for the day-to-day operations of the Fire Department, but it does not have adequate resources to pay for proposed Fire Department capital improvements, such as, the acquisition of firefighting and lifesaving apparatus, vehicles and equipment, construction or modernization of fire stations, modernization of technology/ communication systems and equipment, and acquisition of land. Under State law, the City is authorized to finance these capital improvements from the proceeds of voter approved general obligation bonds.
• Why are the proposed Fire Department capital improvements necessary?
o The proposed Fire Department capital improvements are necessary due to aging apparatus, vehicles, equipment, increased demand for fire protection and life safety services, the condition of existing facilities, changes in technology, firefighter safety standards and community growth. These capital improvements will help the Fire Department to (a) provide safe, dependable and responsive firefighting and lifesaving services to the residents within the City; (b) protect the firefighters and emergency medical service staff delivering these services; (c) prevent the dilapidation of existing stations and facilities; and (d) better deal with future growth and expansion that further necessitate firefighting and lifesaving services.
• What is the estimated cost to taxpayers of the 2009 Fire Bonds?
o The 2009 Fire Bonds will be repaid from annual property tax levies in excess of regular property tax levies over a period of 10 years. If approved, taxes to repay the 2009 Fire Bonds will be collected beginning in 2010. Although the exact amount of such annual tax levies will depend upon the interest rates available at the time the 2009 Fire Bonds are sold, the City anticipates a bond tax rate of approximately 27 cents per $1,000 of assessed value for life of the 2009 Fire Bonds or $27 per year for a home assessed at $100,000. The proposed tax rate for the 2009 Fire Bonds will constitute a tax rate increase (over the existing 2009 tax rate for the 1999 Fire Bonds) of approximately 10 cents per $1,000 of assessed value, or $10 per year (or 83.5 cents per month) for a $100,000 home.
• Aren’t I currently paying for an existing bond to finance Fire Department improvements?
o Yes, if you own property in the City of Spokane, you are paying for the last year of the bonds issued in 1999. The 1999 Fire Bonds will be paid off at the end of 2009. For a $100,000 home, you are currently paying approximately $17.00 per year—or about 17 cents per $1,000 of assessed property value.
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• What is the history of fire bonds in Spokane?
o Relatively small bonds were approved by voters in the 1950s and 1960s to support the Fire Department. In the late 1980s, the City faced a crisis with respect to the condition and location of your Fire Department facilities. Additionally, many of the Fire Department’s front-line fire apparatus were in desperate need of repair. The City Council placed a $14.9 million bond before voters in 1989 to address a portion of the Fire Department needs. The Council recognized that this amount would pay for only the most essential needs and that future bond issues would be necessary to continue the modernization process. It was at this time that the City Council determined the need for recurring funding for Fire Department capital items and initiated the process of submitting bonds issues to the voters every 10 years. The 1999 Fire Bonds totaled $21,300,000, and the proposed 2009 Fire Bond is for $33,000,000.
• Why have the bond amounts issued to support Fire Department improvements increased?
o Because the bond issues are run only once every 10 years, normal inflation has raised costs. Additionally, we have seen a significant increase in the costs for fire apparatus, some fire equipment, and construction. For example, a new fire engine purchased in the early 1990s cost about $220,000. A similar engine purchased in the early 2000s cost about $300,000. Now, the cost ranges between $500,000 and $600,000. Similar increases have occurred for firefighter protective clothing, as well as for other safety equipment and construction costs.
• Due to rumored City budget cuts, if there are reductions in firefighters and closure of a fire station in 2010, may the City use the 2009 Fire Bonds to pay for maintenance and operations, including the salaries of firefighters?
o No. Under State and Federal law, the proceeds from the 2009 Fire Bonds may not be used to pay for maintenance or operations, including the payment of salaries of firefighters. These proceeds may only be used to pay costs of capital improvements.
• Why is the City submitting the 2009 Fire Bonds to the voters if there is a possibility of a fire station being closed?
o There has been no final decision about closing any fire stations in 2010. However, even if that occurs, the capital needs of the Fire Department don’t go away. Firefighting and lifesaving apparatus, vehicles and equipment, technology/ communication systems and equipment, and fire stations and facilities all need immediate attention, and the City does not have a means to pay for those needs without a bond issue.
• Where can I find general information about voter qualification and registration, ballot validation requirements, dates the ballots will be mailed and other related election information? o You may contact the Spokane County Elections Office at (509)-477-2320 or visit their
website where they have posted a number of Frequently Asked Questions:
http://wei.secstate.wa.gov/spokane/Pages/FrequentlyAskedQuestions.aspx
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• Is there a special tax exemption for senior or disabled citizens? o Yes. To find out if you qualify for a tax exemption from the proposed 2009 Fire Bonds,
contact the office of the Spokane County Assessor at (509) 477-5775.
• How will the ballot proposition describe the 2009 Fire Bonds?
o
The ballot proposition will read as follows:
PROPOSITION 1 CITY OF SPOKANE
GENERAL OBLIGATION FIRE BONDS - $33,000,000 (Fire Department Improvements)
The Mayor recommended and the City Council of the City of Spokane, Washington, passed Ordinance No. C34464, concerning a proposition to finance Fire Department improvements. This proposition would authorize the City to acquire new and improve existing firefighting and lifesaving apparatus, vehicles and equipment, construct new and renovate existing fire stations and facilities, modernize Fire Department technology and data/communication systems and equipment, and acquire land for future fire stations and facilities; issue no more than $33,000,000 of general obligation bonds maturing within 11 years; and levy annual excess property taxes to repay the bonds, all as provided in Ordinance No. No. C34464. Should this proposition be:
Approved ..........␣ Rejected .........␣
• Where can I find other information about the 2009 Fire Bonds?
o The Spokane Fire Department has posted information on its web site located at: www.spokanefire.org
