Release from Keizer Fire
Posted on FlashAlert: February 24th, 2020 3:39 PM
Keizer Fire District made strong financial moves in its bank financing of their
General Obligation Bond Funds which were approved by voters in November of
2015. The Bond funds are to buy fire trucks, ambulances and equipment.
The approved bond financing was made in two-series issuance of bonds for
a total of 20 years. The first series of bonds were sold in March 2016 to
buy emergency equipment such as fire trucks and ambulances for the fire
district. At their regular monthly Board Meeting, Tuesday, KFD Board of
Directors approved the bank financing of the second series of bonds in the
current strong financial market and increase the value of the bonds, while
saving taxpayers money in rates, term, and interest.
The rates, term, and
interest winning trifecta can be explained as follows: The property tax
rate for the bonds was set at $0.14 cents per thousand for property owners. The
refinancing came in at $0.13 cents per thousand as a lower tax rate for
property owners. The 20-year term of the bond was reduced to 16-years of
payments instead of 20-years. The interest rate is at a low 2.5% interest.
The perfect storm of
market rates, interest, and investor demand for stable investments, provided a
startling $1.9 million dollars in interest savings to KFD tax payer over the
length of the fire equipment bond funding while yielding $6.3 million instead
of $5.9 million dollars in emergency equipment for Keizer Fire.
Keizer Fire District
put the funds to work immediately ordering two more ambulances, a fire truck,
and a wildland firefighting vehicle (Brush Truck). The timing of the orders-
combined with avoiding 2020 cost increases on equipment, yielded another
$80,000 in cost savings.
Speaking on behalf of
the KFD Board of Directors, Board President Chet Patterson expressed his
approval of the financial move saying, “It is always a win to make good
decisions, save our tax payers money, and get the necessary equipment out there
for our fire district to handle emergencies” The Board also recognized David
Ulbricht, Director of Advisory Services for Special Districts Association of
Oregon. David acted on behalf of KFD as Bond Financing Advisor for the fire
district and participated in years of service doing strategic planning with the
fire district to meet their funding needs for fire trucks, ambulances, and
Contact: Jeff Cowan, Fire Chief