||| FROM CARL BUTTKE |||
During an early presentation by the Fire District financial consultant, she spoke of the benefits of selling tax free municipal bonds for equipment coupled with a tax levy for operations. In the final presentation it was one of four options to finance the Fire District. However, the only option described to the public was the $1.06 per thousand dollars tax levy. When asked about the option with the sale of bonds, she said she would do a quick calculation and get back to me. She did not. If she had to do a calculation during the presentation, it was a clear sign that the option of a levy and bond sales was not analyzed.
Why not?
Fire Districts throughout Washington and the U.S. use a combination of a property tax levy and the sale of bonds to finance operations and acquire equipment. So why is our Fire District ignoring that option?
Bonds for equipment can be sold in small amounts at staggered or different times to acquire equipment as needed and when interest rates are favorable. They do not have to be sold immediately and all at once. Also, by selling bonds on an as need basis, there is little to no need for a sinking fund to purchase equipment in the long term future.
The result when done thoroughly would produce a lower tax levy and the ability to sell and retire bonds as needed on a permanent basis.
Vote “NO” on the $1.06 fire levy because that appears to be the more expensive option to financing the Fire District.
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Oh boy. another reason to go for a revised levy. Thanks Carl.
Carl, Thank you for this succinct and accurate assessment of Proposition One. Only one of MANY reasons this levy is poorly crafted.
The fire department is fully funded until the end of 2024.
Vote NO August first! Let’s work together to get this figured out.
You still need income (taxes ) to repay the bonds…?
Yes, Carl; thanks for bringing up this idea and the fact that other counties have used bonds with success. I would like to see this idea explored before being shot down before we even explore it as an adjunct or option to a new levy.