Commentary/opinion: Reviewing facts behind the RFA annexation debate – part 1

South County Fire ladder truck. (File photo)

Part 1

There have been many articles, commentaries and opinion pieces in recent months about the upcoming ballot measure to decide whether Edmonds should, or should not, join the South Snohomish Country Regional Fire Authority. Many facts have been put into the public domain but, as with all things, many of those facts lack context or have been selectively chosen to advance one viewpoint or another.

While I do not claim to have a universal understanding of the topic or a complete inventory of facts to share, I have been following this issue very closely. I have a perspective that I think is worth sharing with the broader community, to assist voters in deciding how they should vote on this measure. This perspective is informed by research into many of the statements that are claimed as fact by both sides in this debate and — while I have a position on how I intend to vote — the perspective that I will elaborate is as unbiased as I can make it. I will not shy away from presenting facts that support both sides of the issue.

In this series of columns, I will cover the following topics.

1. A review of the cost of fire and emergency medical services (EMS) in neighboring communities.

2. The funding mechanisms for the RFA and the significance of the fire benefit charge.

3. Staffing and service levels for fire/EMS service in Edmonds

Cost of fire/EMS services in neighboring communities

Is Edmonds, paying too little for fire/EMS service or are the other cities within the RFA paying too much? This is a key question since — under the proposed annexation deal — the cost of fire/EMS services in Edmonds will increase from $12.5 million that the city pays under contract in 2025 to somewhere in the region of $19-20 million, which the residents will pay directly to the RFA in 2026.

The precise cost of the service in 2026 is unclear because of a variety of factors that are unknown at this time. For example, what will the RFA budget be in 2026? What changes will occur to the assessed valuations of property in Edmonds and in other parts of the RFA service area? How much of the RFA budget will be financed through a tax levy and how much will come from other sources including the fire benefit charge?

What is clear is that we will be paying a lot more for fire/EMS service in 2026 regardless of the outcome of the vote in April because, — if the vote to annex into the RFA fails — the RFA will impose new contract terms on Edmonds that effectively require the city to pay the equivalent amount that would be billed to residents under the RFA levy and benefit charge.

The RFA and its supporters state that Edmonds has not been paying its fair share and that residents of other communities that are part of the RFA are subsidizing our service through the property taxes and fire benefit charges that they pay directly to the RFA. Opponents of the annexation counter that we are currently paying the full union salaries and benefits of the firefighters who are stationed in Edmonds plus an overhead factor to account for the organizational costs of running the RFA.

This is one of the principal arguments in favor of Edmonds restarting its own fire department, which would allow us to retain local control over things like staffing levels, service levels and overheads. But how are other neighboring communities faring in managing their own fire and EMS services?

A good place to start is Shoreline, which just recently voted on its own ballot measure to create an RFA to serve Shoreline, Kenmore and Lake Forest Park. These communities have had a contractual relationship for several years and the creation of an RFA is further formalizing that relationship. Early returns from the vote, which was held on Feb. 11, suggest that this RFA measure will be approved by a wide majority. Shoreline already has a diversified revenue source, which combines a property tax levy and a fire benefit charge.

The purpose of the fire benefit charge is to distribute costs more equitably among properties of similar types based on the actual cost of putting out a fire rather than relying entirely on property tax valuations, which can fluctuate widely between similar properties in different locations. By relying more heavily on the fire benefit charge, an RFA can substantially reduce the tax levy on single-family homes and small businesses, and this is something that the RFA proposal in Shoreline is planning to do.

In an example provided by Shoreline Fire chief Matt Cowan, using the 2025 tax levy of $0.6835 per $1,000 of assessed valuation (AV), a representative home with an AV of $905,000 might pay $618.57 in levy taxes plus another $302.66 for the fire benefit charge for a total cost of $921.23. This example yields an effective levy rate of $1.02 per $1,000 of AV. That rate, however, does not include an additional levy of $0.25 per $1,000 of AV for the Medic One service that provides EMS in King County. Adding this into the equation brings the total to $1.27 per $1,000 of AV.

Chief Cowan projects that his example home would see a reduction of 3.4% if the RFA measure passes in Shoreline but he is non-committal on that since the 2026 budget has not been determined. For reference, an Edmonds home with an AV of $905,000 currently pays around $678.75 in total taxes toward the cost of fire and EMS services and, under the terms of the annexation, could pay as much as $1,140 if the effective levy rate (including the benefit charge) were $1.26 per $1,000 as has been quoted in some discussions of the annexation. Note, however, that the $1.26 figure that has been used in much of the discussion around annexation is inflated, as I will explain later.

The City of Everett runs its own fire and EMS department. Looking at the 2024 budget, we see that fire and EMS accounts for almost $47 million. Unlike Edmonds, Everett has a much more diverse source of funding, and property taxes account for only a portion of the fire/EMS budget, so a direct comparison of property taxes does not provide a solid basis for comparing the costs of these services in Everett and Edmonds. Emergency management and fire are part of the general fund (page 81 of the budget) but emergency medical services are not (page 82). The emergency medical services budget is funded by a combination of property tax, grants, service fees and reimbursements (pages 122-123).  Despite these various sources of revenue, the EMS fund is projected to decline by $3 million to $6 million per year for the foreseeable future due to costs exceeding revenue. There are other costs associated with fire and EMS services in the Everett budget such as fire pension (LEOFF 1 page 129). This fund appears to be underfunded, and the city has proposed to increase general fund contributions to this fund from 2025 in the amount of around $2 million per year.

This provides some context for the ballot measure that was put before Everett voters last fall, which proposed a property tax increase to fund fire and EMS among other priorities for the city. That ballot measure was rejected by the voters of Everett.

The population of Everett is around 2.6 times larger than Edmonds. Scaling the cost of fire/EMS in Everett to a city the size of Edmonds yields an estimated cost to Edmonds of around $18 million, which is slightly lower than the projected RFA cost but still in the ballpark.

Mukilteo is another neighboring city that operates its own fire/EMS service. With a population around half that of Edmonds, Mukilteo’s current costs are consistent with what Edmonds is paying under its existing contract with the RFA. In 2024, Mukilteo spent just under $6 million on fire/EMS services but, like Everett, the city’s voters failed to pass a ballot initiative to increase their EMS levy to keep up with rising costs. The ballot measure would have raised an additional $1.665 million for EMS services. For 2025, Mukilteo is projecting to spend a little over $6.2 million but with the failure of the levy lift vote, the city is using almost $2 million of ARPA funds to pay for the bulk of their EMS personnel this year.

This analysis suggests that other cities are generally paying more than Edmonds is currently paying for these services and cities running their own fire services are struggling to manage rising costs, especially for EMS.  However, this is not an endorsement of the proposed $19 million to $20 million that the RFA wants to levy on Edmonds residents, which seems too high based on the comparative analysis.

Summary and conclusions

There are those on both sides of this debate who want to make this a black-and-white issue and focus only on aspects of the debate that support their arguments. Such efforts are not conducive to enabling our community to make an informed decision on a matter of such importance. The voter’s pamphlet that you will receive in the mail shortly will contain very little context to inform your vote. The pro and con committees that have been created to write statements for and against annexation are subject to very restrictive word limits that make their efforts little more than token expressions of democracy with no real impact whatsoever.

In this commentary, I have sought to provide additional context for one of several talking points that surround this debate. I would summarize these as follows:

– Our current costs are substantially lower than most neighboring communities. Mukilteo is close to what we are paying, but they are struggling to continue to operate their service with the funds that are available to them.

– The $19-20 million that is being suggested as the appropriate level that Edmonds should pay to the RFA is too high.

Please look for future columns in which I will analyze the RFA funding model and ways that it can be improved, as well as service and staffing level data presented by the RFA in its annual report to the Edmonds City Council.

Niall McShane is an Edmonds resident, occasional contributor to Scene in Edmonds and a retired IBM executive with experience in managing software development and customer service organizations.

 

  1. Thank you, Niall, for this in-depth, factual analysis. It does seem that this decision is a complex one and your article helps me begin to understand what I will be voting on. I look forward to reading your next article.

  2. Thank you for this informative article. The detailed cost comparisons are helpful and I look forward to future articles. One question: Does Edmonds have any leverage to reduce the cost of RFA’s $19-20 million renewal contract?

  3. Thank you for your objective, detailed comments on how much neighboring communities are paying for fire/EMS services. That is an important metric which helps us evaluate the price and quality of RFA annexation versus providing all, or some, of those services ourselves.

    I’m looking forward to your future installments where I hope to find out:

    1) If we annex into the RFA, will the cost to Edmonds be equitable, or will Edmonds be subsidizing the “legacy” RFA members? How do we determine if the cost to Edmonds is equitable? Is it equitable that our share of RFA cost – and the share of other members – is based on real estate assessed value? Or should the cost share be related to utilization? Or a blend of these? There are many other factors that differ between RFA members which could also be considered in determining equitable cost.

    2) If we annex, does Edmonds become an equal member in administering the RFA? If not, why not? And how should equity share in administration be measured? Each city having an equal vote, or different degree of control related to cost contribution, or ?

    3) Lastly, I’d like to know more about the $6.5 million dollars being repurposed ….

    Thank you, Niall, for the timely, informative piece!

    1. Thank you Robert. My next column will specifically address your first question. On your second question, Edmonds would initially have observer only status on the fire commission as Brier and Mill Creek currently have. We would be eligible to vote for commissioners in the next round of elections which I believe would be in 2027 for seating in 2028 but this will require a redistricting of the fire commission districts and it remains to be seen if all of Edmonds would reside in a single district or if we would be split among two or more districts. There are pros and cons for either approach. As for your third question, that is a matter for city council but, as I understand it, this $6.5 million in existing property taxes would be used to meet the current budget needs of the city which are being subsidized through inter fund loans. A further levy would be required to rebuild the reserves in the general fund to provide a safety net for city operations.

  4. Great article. But the citizens of Edmonds need to get involved by attending the meetings scheduled to discuss the issues. The dates and locations can be found on the city website!!

  5. Niall:
    Excellent commentary! Thank you for doing this. A minor correction; you stated: “The population of Everett is around 2.6 times larger than Edmonds.” It is 2.6 times the size of Edmonds, not 2.6 times larger.

  6. Niall, excellent column! I know you have been researching this topic for many months and working through the lack of complete performance or financial data from the large fire agencies in our area. Can you update this article with a comparison to the benefit charge from South County Fire RFA? It’s a quite different amount for Sno County residences, compared to Shoreline’s charge.
    I also have been researching this topic, and think it’s helpful for voters to understand that when the State legislature gave fire districts taxing authority, they also put caps on the size of the levy for fire and for EMS and how much the levy can be raised each year. That’s a good thing.
    I hope your future columns explain “our” RFA’s performance. The State sets the standard, and all RFA’s have to publish compliance reports on their performance comparing to the standard and how they will remedy the situation when they are under performing.
    Keep up the good education effort.
    Whether planning to vote yes or no on the April ballot, we all want to understand the repercussions of our vote. And when surveyed, fast Fire/EMS response was the highest priority of city services for the residents of Edmonds.

  7. Nial is saying that we know the RFA ask is too high, but what we don’t know is by how much the ask is too high. That’s what the “con” annexation group of volunteers is saying. The city is telling us that they have absolutely investigated this thoroughly and annexation is definitely the cheapest way to go. The city is also telling us that the negotiated cost of contracting is exactly the same as annexation so there is no point in not just annexing; (so we needed to have this hurry up and get it done expensive election to move on to other more pressing things, like a Fall general Fund Levy request). That’s certainly the easiest way for the administration to go but they definitely haven’t proven it’s the cheapest way to go, if you choose to believe Nial, and I do choose to believe him. Nail goes on to say that there are ways to improve on the RFA model that he will talk about. But that isn’t going to mean much if Edmonds has little to no local say in how RFA gets run. That plus the unknown consequences of Districting that Nail points out makes me really opposed to just voting yes on this as the city wants us to, but pretends neutrality.

  8. Edmonds hired consultants provided recommendations, that would improve (yes improve) the quality of fire & ems services and reduce costs. To the tune of 20% of the total $7.5M costs in 2016, or $1.5M in savings.

    The recommendations were never implemented. Edmonds lacks leadership. Until someone steps up, continue to pay up.

    -Links to the consultants recommendations

    https://myedmondsnews.com/2016/04/report-edmonds-fire-ems-services-can-improve-performance-reduce-costs/

    https://edmondscandobetter.org/pdf/Fitch_Executive_Summary_Report.pdf

  9. Yes, Niall, a terrific analysis. Beyond the numbers, I believe I will vote no on annexation because I think regionalism is overhyped. Local control of services is in the best interest of the Edmonds community, even if it means paying a slight premium. However, there may still be some cost savings to be had. I understand the reluctance to have local city leadership manage services based on their record of financial illiteracy, but I believe that could be overcome.

  10. Thank you! The other day I was wishing for some unbiased explanation of the pros and cons – so I appreciate the time that went into researching this issue, and the care to write it even-handedly. I value having a framework to consider the issue, and will be sharing both of your columns with the other voters in my household. (Hopefully it gives our house a chance to have robust discussion – sounds like either way we’re going to experience an increase in property tax, so what makes the most sense for that investment in the community?)

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