East Fork Fire District trustees OK borrowing $3 million to purchase fire equipment

Last year, Laguna Beach, Calif., paid $1 million for a Type 1 fire engine.

Just one such replacement would consume a third of a $3 million East Fork Fire Protection District trustees approved seeking through a medium-term bond.

“We are essentially borrowing funds that may be issued by lending institution as bonds,” East Fork Chief Tod Carlini said.  “There is no new tax or the need for any type of voter approval.  We will be using our existing revenue and budgeted funds to serve the debt of up to $3 million.”

Carlini said the district used the same process in 2018 when the district borrowed $2 million to purchase three Type 1 engines and radios.

That loan came at a much lower rate, which is still being paid down.

The Nevada Department of Taxation approved medium-term financing in November to purchase firefighting equipment or improvements to district owned property at a maximum estimated rate of 5.5 percent to be paid over the next decade. Bond Advisor Marty Johnson said he expects the rate to max out at 4.5-4.75 percent. The district plans to make lower payments on the new bond while paying off the older one, which was issued at a rate of 1.86 percent.

The fire district has its own elected board and its own tax rate, which is $.4874 per $100,000 valuation. In comparison, the Tahoe Douglas Fire Protection District has a tax rate of .5881.

Because the total county tax rate is at the $3.74 per $100,000 cap, there isn’t room for a tax initiative even if voters were amenable to approving one.

Under state law the district has 18 months to execute a loan with a bank and under a request for proposals process, Carlini said.