Shoreline Fire Authority Proposes $69.6 Million Budget and Higher Fire Benefit Charge for 2027

The Shoreline Fire Department Regional Fire Authority (RFA) is preparing a $69.65 million operating budget for 2027, reflecting increases in both of its major property-related revenue sources: regular property taxes and the Fire Benefit Charge (FBC).

The RFA Board of Commissioners will consider the proposed budget and related tax and benefit charge resolutions at its meeting Thursday, November 5.

The proposed budget totals $69,648,543 and covers general operations, capital expenses, employee benefits, Advanced Life Support (ALS), and Mobile Integrated Health (MIH).

Proposed 2027 budget

General expenses account for approximately 70% of the proposed budget.

Property taxes and Fire Benefit Charge would both increase

Two resolutions address the RFA's principal sources of property-related revenue.

Resolution 26-10 would certify a regular property tax levy of $22,526,962 for 2027. The King County Assessor has reported a total assessed valuation of approximately $30.09 billion for taxable property within the RFA boundaries.

Resolution 26-11 would authorize a 1% increase in the regular property tax levy, amounting to $222,364 over the previous year's actual levy. The resolution references the statutory limit on annual increases in regular property tax revenue.

The second revenue source is the Fire Benefit Charge, which is separate from the regular property tax levy.

Resolution 26-09 proposes a 2027 Fire Benefit Charge totaling $12.45 million. Voters authorized the charge in 2021 for a 10-year period, and that authorization remains in effect throughout the RFA service area.

The proposed increase is significant relative to the regular property tax levy.

At an October 15 public hearing, Fire Chief Matt Cowan outlined preliminary budget projections that anticipated approximately $2 million in additional Fire Benefit Charge revenue, along with the maximum 1% increase in regular property tax revenue.

Together, those changes were expected to raise the combined property tax and Fire Benefit Charge equivalent levy rate from approximately $1.05 to $1.19 per $1,000 of assessed valuation.

The equivalent levy rate combines the two revenue sources. It is not a separate tax rate shown on an individual property owner's tax statement.

The actual Fire Benefit Charge assessed to an individual property is calculated using the department's benefit charge methodology and characteristics of that property. The agenda packet establishes the overall revenue target but does not include individual property charge estimates.

Falling assessed values create budget challenges

One issue facing the RFA during budget development was a projected decline in assessed property values.

At the October 15 public hearing, Chief Cowan indicated that assessed valuation was then expected to decline by approximately 5.45%, although King County had not yet finalized all valuations.

A decline in assessed valuation can challenge taxing districts because they must raise required revenue from a smaller overall tax base.

The department considered several options during budget development, including adjustments to capital projects, benefit reserves and overtime estimates, as well as using available cash and capital funds.

The department also said it wanted to maintain a reserve equal to 15% of revenue to protect against unforeseen losses.

At a special meeting on October 27, commissioners reviewed the proposed budget and directed staff to reduce projected cash on hand by an additional $1 million before forwarding the budget for final consideration.

The September financial report included in the November meeting packet shows approximately $11.75 million in the General Expense Fund. The report also indicates that 2026 spending was running approximately 1% above the department's targeted budget position at the end of September.

Where the money is going

Personnel costs make up a significant portion of the department's operating expenses. Budget line items include salaries, overtime, retirement, medical coverage and other employee-related expenses across fire suppression, EMS/BLS, administration, training and other functions.

The September overtime report shows approximately $1.80 million in fire suppression overtime and $1.03 million in EMS/BLS overtime to date. These are separate staffing and overtime categories in the department's reporting.

The department is also continuing to invest in equipment, technology and facilities.

Recent and planned activities identified in the board packet include:

• Retrofitting fire engines to improve uniformity, including hose beds.
• Reviewing a possible expansion of the Station 61 shop.
• Replacing two medic units, with final delivery delayed until early November.
• Continuing computer replacement and technology upgrades.
• Deploying new 5G modems in the emergency response fleet.
• Developing additional rescue capabilities.

The department also reported 14 accepted offers and one conditional offer for firefighter positions. Recruitment is underway for a Mobile Integrated Health manager and an HR specialist. The MIH manager recruitment has received more than 50 applications.

Regional expansion discussions continue

The November 5 agenda also includes an update on potential expansion of the Regional Fire Authority to include the City of Bothell and Snohomish County Fire District No. 10.

The department's activity report says discussions with Bothell are continuing as the city evaluates the implications of joining the RFA.

Recent meetings have included discussions about staffing and workload requirements for the Fire Marshal's Office, fire prevention services, and community risk reduction in a potential post-annexation environment.

The department also reported that it is evaluating equipment, technology, and other operational needs should Bothell Fire join the RFA.

The board agenda lists this as a discussion item. The meeting packet does not indicate that the board has reached an agreement or approved either proposed expansion.

Any expansion would affect service delivery, staffing, facilities, and the regional authority's financial structure.

Other proposed changes

The board will also consider adjusting its Post-Employment Medical Benefits program.

Resolution 26-07 would incorporate a 4.5% Consumer Price Index increase effective January 1, 2027. The resolution also provides notice that the program will end December 4, 2028.

A committee is reviewing the program's long-term financial sustainability and potential medical coverage for employees who retire after approximately 25 years of service.

Board meeting

The Shoreline Regional Fire Authority Board of Commissioners is scheduled to meet Thursday, November 5, at 5:30 p.m.

The meeting will be held at Station 61, 17525 Aurora Avenue North, Shoreline, with remote participation available through Zoom.

The agenda includes consideration of the 2027 budget, Fire Benefit Charge, property tax levy resolutions and an update on potential regional expansion.

Residents may attend in person or participate remotely. Public comments are limited to two minutes per individual, with up to four minutes for representatives of recognized organizations.

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• Bothell Voters Overwhelmingly Approve Joining Shoreline Regional Fire Authority Proposition 1 is passing with 83.5% support in initial election returns. Annexation is scheduled to take effect March 1, 2027, pending certification of the results.
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