CORRECTION: A previous version of this article misreported potential cost of annexing into the Puget Sound Regional Fire Authority’s fire district. While the fire district does have a maximum levy rate of $1, there is also a separate fire benefits charge of up to 50 cents. The article has been updated.

The city of Black Diamond has begun a fire protection and emergency services feasibility study in the midst of potentially losing Mountain View Fire and Rescue as its contracted partner.

On Dec. 31, 2024, Mountain View Fire and Rescue’s Board of Commissioners officially put Black Diamond on alert that the department would not renew its contract with the city in 2028 unless the city provides MVFR with enough money to cover the cost of services.

In response, Black Diamond council members approved on March 6 an amended ordinance to have the financial consulting FCS Group analyze the city’s fiscal options when it comes to determining its next steps.

If this all sounds familiar, it’s because it’s happened before when MVFR sent a similar termination letter to Black Diamond in 2019. This prompted the city to hire FCS Group in 2020, and the financial consultant presented various options to city officials in 2021.

Those options were to continue a contract, which is what Black Diamond ultimately went with, and MVFR accepted; annex into MVFR’s fire district, or into another department’s district; or the city start its own fire department.

Complicating those options was the likelihood of property taxes increasing for city residents, whichever option was chosen.

“Regardless of [the] scenario, a new revenue source (property tax levy lid lift) will be required to pay for either renewed contract with MVFD, operate own FD, or to address loss of property to revenue due from annexation,” FCS Group concluded in 2021.

Four years later, and little has changed — except that it is probable all of Black Diamond’s options will be more expensive than they were before.

COST, THEN AND NOW

In both 2019 and 2024, MVFR moved to end its contract with Black Diamond due to the cost of services not being covered by the city, the department said.

According to FCS, the city paid MVFR roughly $615,000 in 2019, but the department said the cost of services exceeded $1 million.

After going through all its options, Black Diamond agreed to increase its contract by $500,000 plus an additional 5% every year through 2028 — which was the cheapest option presented to them, at least in the short term.

It was assumed that the city would have to go to voters and ask them to approve a levy lid lift so the city could afford the increase, but a measure was never put on an election ballot; at the time, the city said that various revenue streams and money from the general fund balance meant Black Diamond was able to afford the increase for at least 2020, but it was unclear if those funds would last for multiple years.

In 2024, Black Diamond paid MVFR $1.28 million, but the department said it cost $2.8 million to provide services to the city.

MVFR WANTS ANNEXATION

While MVFR accepted the increased contract amount in 2021, the department’s commissioners made it clear that they “do not believe further contract extensions are financially viable” and that they want Black Diamond to work toward annexing into the fire district.

Currently, Black Diamond collects property taxes from its residents to pay to Mountain View; annexing into the fire district would mean MVFR would tax Black Diamond residents directly.

This would have dramatic effects on not just taxpayers’ wallets, but the city budget as well.

In its earlier presentations, FCS said that Black Diamond residents would be taxed under MVFR’s property levy which can be up to $1.50 per $1,000 in assessed property value.

But that revenue is also taken away from the city’s property tax, and in order to continue basic services, Black Diamond would likely have to ask voters for a levy “lid lift” and increase its levy rate.

PUGET SOUND REGIONAL FIRE AUTHORITY?

Instead of Mountain View, Black Diamond could try to annex with the Puget Sound Regional Fire Authority.

This could be a potentially cheaper option than annexing with MVFR, as the Fire Authority has a maximum levy rate of $1.

However, PSRA also has a fire benefit charge (or “fire fee” that is not a property tax) that is based on various risk factors and can increase residents’ total tax bills.

Additionally, this would still mean Black Diamond’s property tax levy rate would dip, so the city would very likely still turn to voters for a lid lift.

INDEPENDENT DEPARTMENT

The final option FCS Group explored four years ago was for Black Diamond to create its own department.

How much that would cost the city — both in establishing a department and continued operations, is unclear, as the 2019 estimates likely no longer apply.

However, FCS Group estimated that the city would have to still go to the voters for a levy lid lift.