Fire District Bond Information

The Board of Fire Commissioners of San Juan County Fire Protection District No. 2 (d/b/a Orcas Island Fire & Rescue) adopted Resolution No. 2025-02 concerning a proposition for bonds. This proposition for the issuance of its unlimited tax general obligation bonds in the aggregate principal amount of not to exceed $18,500,000 is for the purpose of providing funds to construct, acquire, equip, renovate and make capital improvements to apparatus and facilities of Orcas Island Fire & Rescue, including but not limited to the following: 

• Refurbish and purchase ambulances, fire engines, tenders, light trucks and brush trucks;
• Rehabilitate and improve roofs, cranes/lifts, utilities, restrooms and other fire stations and facilities; and 
• Other capital improvements to Orcas Island Fire & Rescue facilities for fire prevention, fire protection, rescue, and emergency medical services, including wildfire defense. 

Brian Ehrmantraut, Chair of the Board of Fire Commissioners, says, “We chose the bond method because it allows us to match the cost of critical capital projects to their useful life, without creating such a large spike in property taxes as other methods. What we heard in discussions with the community was clear: people wanted a transparent, stable approach to funding major repairs and replacements. A bond gives us that structure, and ensures the funds are used exactly as promised. This bond isn’t about expansion or new programs. It’s about taking care of the equipment and facilities we already rely on, so our firefighters, paramedics, and EMTs can continue serving the community safely and effectively.” 

Community Needs 

Orcas Island Fire & Rescue (OIFR) facilities and apparatus require immediate attention. Fire engines, ambulances, brush trucks, and other critical equipment need refurbishment or replacement. Facility roofs and structural damage will worsen without prompt action. 

The district's apparatus committee and facilities committee spent months evaluating equipment and facility conditions. Their recommendations, combined with staff analysis, identified urgent capital needs that cannot be delayed.  

Purchases between 2026 and 2033
Refurbish 3 Fire Engines	$2,400,000
Replace 5 Fire Engines	$7,900,000
Replace 2 Ambulances	$700,000
Refurbish 2 Water Tenders	$1,200,000
Purchase 1 Water Tender	$1,000,000
Replace Rescue Truck	$350,000
Refurbish Wildland Fire Truck	$150,000
Replace 2 Paramedic and 3 Support Vehicles	$1,000,000
Facility and Building Upgrades	$2,500,000
Contingency	$800,000
Administrative and Financing Costs Estimate	$500,000
Total	$18,500,000

Financial Approach 

OIFR proposes general obligation bonds rather than increased levies. The estimated bond levy rate is approximately $0.20 per thousand dollars of assessed value. Combined with the current regular levy of $0.77 per thousand, total property tax impact would be roughly $0.97 per thousand - less than the rejected 2023 levy attempts of $1.06 per thousand. 

The maximum regular levy rate for fire districts is $1.50 per thousand, providing context for current funding levels. 

Breakdown of what 18.5 million in bonds will cost based on estimated valuations.
Assessed Valuation	Rate	Annual Cost	Monthly Cost
$500,000	$0.19	$95	$8
$750,000	$0.19	$143	$12
$1,000,000	$0.19	$190	$16
$1,250,000	$0.19	$238	$20

Bond Benefits 

Cost Management: Bonds spread project costs over the equipment's useful life of approximately 20 years. This approach results in lower annual property tax increases compared to funding projects entirely through levies. 

Timing Flexibility: Bonds can be issued as needed rather than all at once. Apparatus has lead times of 1-2 years or more. This approach allows bond issuance to align with actual equipment purchases and spreads tax impacts over time. 

Dedicated Funding: Bond funds are legally restricted to designated capital projects. No future board can redirect these funds to other purposes, addressing community concerns about funding accountability. 

Community Equity: Bonds allow residents who benefit from equipment during its service life to pay their share while they live on the island, rather than current residents paying the entire cost upfront. 

Financial Impact Considerations 

While bonds cost more overall than upfront payment, they use tax-free government rates lower than commercial financing. The approach addresses community feedback favoring lower annual property tax payments over large immediate increases. 

Community discussions revealed a strong preference for separating capital equipment funding from operational expenses. This bond approach creates that separation while maintaining fiscal responsibility. 

Community Context 

The 2024 operational levy of $0.77 per thousand passed after two failed attempts in 2023. The 2024 operational levy covers basic expenses to maintain services but does not address capital needs or new programs. 

Public outreach included presentations by attorneys on financing options, committee work on equipment and facility assessments, community discussions gathering resident feedback, and a town hall meeting. The bond approach emerged as the preferred method based on community input and financial analysis.