Salem Suburban Rural Fire Protection District

Referred to the People by the District Board

Salem Suburban Rural Fire Protection District General Obligation Bond Authorization

Question: Shall Salem Suburban Rural Fire District issue general obligation bonds for fire apparatus purchase in an amount not exceeding $1,500,000? If the bonds are approved, they will be payable from taxes on property or property ownership that are not subject to the limits of sections 11 and 11b, Article XI of the Oregon Constitution.

Summary: The measure authorizes issuance of general obligation bonds for the District in an amount that produces net proceeds up to $1,500,000. The bonds would be repaid over a period not exceeding 15 years. The bonds would provide funds to acquire:

One fire engine; Three wildland firefighting vehicles;

Two water tenders; Related firefighting equipment.

The estimated cost to taxpayers is $0.24 per $1,000 of assessed value. The bonds may be issued in more than one series. The estimated tax cost is an ESTIMATE ONLY, based on the best information available at the time this measure was filed. In fiscal year 2007-2008, it is estimated that a taxpayer owning property assessed at $150,000 would pay an additional $36.00 in taxes.

Currently, the fire engines that service Salem Suburban Fire Protection District are 16 years old, wildland firefighting vehicles are 17 years old, and the two water tenders are 18 and 19 years old. All apparatus are critical to the firefighting efforts in the District and are approaching the end of their useful life.

Explanatory Statement

The Salem Suburban Rural Fire Protection District proposes issuance of up to $1,500,000 of general obligation bonds to finance the purchase of firefighting apparatus and related equipment.

The Salem Suburban Rural Fire Protection District contracts with the City of Salem Fire Department to provide fire and emergency services to the District. The fire apparatus being purchased would be operated and maintained by the Salem Fire Department under a lease agreement. Salem Suburban Rural Fire Protection District would retain ownership of the fire apparatus.

Currently, the fire engines that service Salem Suburban Rural Fire Protection District’’s area are 16 years old, the wildland firefighting vehicles are 17 years old and the two water tenders are 18 and 19 years old. All apparatus are critical to the firefighting efforts in the District and all are approaching the end of their useful life. Due to their aging condition, the reliability of this equipment has deteriorated. The numbers of breakdowns and maintenance costs have been increasing.

The units being purchased by the District are the appropriate type of apparatus needed in the District. The units would be housed at stations so they will be available for responses into the District. Partnering with the City of Salem would offset the cost of apparatus used primarily in the District areas and would make economic sense.

These types of vehicles enhance the Fire Department’’s ability to suppress fires that occur in the District. Without reliable equipment, fires have a much greater chance of causing serious property damage, as well as increasing the risk to firefighters who respond to emergency situations.

Water tenders allow water to be transported for use at the fire scene, useful in rural areas where hydrants are not available. Wildland firefighting vehicles are four-wheel drive vehicles that carry water and equipment that can maneuver more easily off-road than a conventional fire engine. They are designed to access areas with rugged terrain, overgrown with brush and grass or into stands of trees.

The bonds would be repaid over a period not to exceed 15 years. The estimated cost to taxpayers is $.24 per $1,000 of assessed valuation for the fiscal year 2007-2008. In fiscal year 2007-2008, it is estimated that a taxpayer owning property assessed at $150,000 would pay an additional $36 in taxes per year. This rate is based on the best estimates that are available at this time.

Sumbitted by:

Glen Thommen, President/Board of Directors

Salem Suburban Rural Fire Protection District