||| FROM ORCAS ISLAND FIRE & RESCUE |||
Orcas Island Fire and Rescue (San Juan County Fire Protection District No. 2), San Juan County, Washington (the “District”) is in the process of issuing phase 1 of voter approved Unlimited Tax General Obligation Bonds (the “Bonds”) to provide $14,000,000 to construct, acquire, equip, renovate and make capital improvements to apparatus and facilities of the District, and to pay costs of issuing the Bonds. Pursuant to the Election Resolution, the improvements include: (i) the refurbishment and purchase of ambulances, fire engines, tenders, light trucks and brush trucks; (ii) rehab and improve roofs, cranes/lifts, utilities, restrooms and other fire stations and facilities; and (iii) other capital improvements to District facilities for fire prevention, fire protection, rescue, and emergency medical services, including wildfire defense.
As part of the bond financing process, the District’s staff and Commissioners presented information to the national rating agency of S&P Global Ratings. According to Fire Chief Chad Kimple, “the District received a rating grade of A+ based on a number of factors, including strong voter support for the levy lid lift and the Bonds; stable financial performance and healthy cash reserves; financial practices and policies; stable economy; and experienced management team in operating the District in an efficient manner.”
The District would like to make local citizens aware of the opportunity to buy the District’s Bonds and earn tax-free (tax-exempt) interest. The Bonds will pay tax-exempt interest on each June 1 and December 1. The Bonds will be financed over 19 years, so investors could decide how many years they would like to invest their money, such as buying a Bond that matures from 12/1/2027 to 12/1/2045.
D.A. Davidson & Co. is serving as the Bond Underwriter. If local investors are interested in purchasing the District’s Bonds, they should act quickly and contact the D.A. Davidson Bellingham office by calling 360-650-5300, on or before October 20, 2026. The Bonds are expected to be priced and sold by October 21, 2026. The Bonds are subject to availability and to the acceptance of an offer to purchase. This is neither an offer to sell nor a solicitation of an offer to buy any of the Bonds.
**If you are reading theOrcasonian for free, thank your fellow islanders. If you would like to support theOrcasonian CLICK HERE to set your modestly-priced, voluntary subscription. Otherwise, no worries; we’re happy to share with you.**
Opportunity for Orcas Island property owners to get back a small portion of the roughly $22+ million to pay for the first $14 million of the NTE $18.5 million bond approved by Orcas voters in December 2025.
From AI: The total approximate cost of a $14 Million Fire District bond in Washington State with an A+ credit rating is between $23 Million and $24 Million over a standard 20-year term. This includes the $14 million principal amount plus roughly $9 Million to $10 Million in total interest expenses and around $500,000 in legal and underwriting fees. (Note: Orcas first bond is a 19-year term).
Beating a dead horse, but if the Fire Commissioners would have done a levy lift (which was legal because the existing fire levy is a 6 year temporary levy) instead of going into 20 years of debt, the fire district (meaning taxpayers) would have had not had to pay the $9 to $10 million in interest.
The cost to taxpayers would have been the same. The cash flow to the fire district would have been $1,250,000 a year, (same as the bond tax), but that was considered to be insufficient buy the equipment and fix the infrastructure in the time frame they wanted it done , so they decided that paying millions in interest over 20 years to have $14 million to spend now (first of likely two bond sales) was the better choice.
Interesting San Juan Island fire district was faced with a similar decision in 2024 and decided not to go in debt for 20 years … they did a levy lid lift and saved millions in interest costs.
I Love the Idea, my Parents use to by Bonds years ago for County Road work..
however, 6 days… that is a very short time for an ask, of such magnitude..