South Metro Fire Rescue outlines budget shortfall, asks communities to weigh tax options
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Summary
South Metro Fire Rescue officials told Centennial council they face an immediate budget shortfall driven by rising costs and recent state legislation, and are exploring options including service cuts, a property tax increase up to 3 mills, or a new sales tax of roughly 0.5% across the district.
South Metro Fire Rescue board chair Jim Albee told the Centennial City Council on April 15 that the department faces a growing budget gap worsened by recent legislation and rising costs for personnel, equipment and apparatus.
Albee and South Metro staff said the district covers roughly 570,000 residents with 800 personnel and 30 stations and relies heavily on property tax revenue. They said property taxes supply about 80% of the district’s revenue, and recent changes at the state level have reduced property tax receipts to the department by millions in 2025 and are projected to deepen the shortfall in 2026 without new revenue or cuts.
Why it matters: council members pressed South Metro on how the shortfall could affect service levels and homeowners’ insurance. South Metro emphasized that the district’s ability to maintain response times and staffing is at stake if revenue does not increase or alternative funding is found.
Albee asked councils to consider three broad options the district is studying: cuts to services or staffing; a property tax increase of up to 3 mills (which the presenters estimated would raise roughly $50 million and would add about $11.72 per month on a $750,000 home in the district); or a new sales tax of about 0.5% across the district to raise a comparable amount. He said the district operates with no debt and that its current mill levy of 9.25 was set in 2004 and has not been increased since.
South Metro officials described growing demand for emergency medical services (EMS), which they said constitutes about two-thirds of calls, and rising costs for protective gear and apparatus. They said some capital items such as fire engines now cost about $1.3 million and have multi-year build times. Albee cited a roughly 40% increase in personal protective equipment costs from 2019–2024 and said the department’s forecasted spending outstrips its projected revenue under current rules.
Albee and other South Metro representatives, including Kevin Lund (board member), Mike Delafano (assistant chief for government affairs), Kristen Eckman (deputy chief of community services) and Stephanie Corbeau (chief financial officer), described public outreach the district has done: 16 stakeholder interviews, 12 organizational briefings and a survey of more than 2,000 registered voters in the district. They reported that roughly two-thirds of survey respondents said EMS demand has increased and that 66% of polled voters would support a sales tax while 57% would support a property tax change.
Council members asked technical and policy questions about revenue composition, ambulance transport fees, specific ownership taxes, the district’s ISO rating and how a reduction in service could affect homeowners’ insurance. South Metro said ambulance transport fees and specific ownership tax make up parts of the remaining 20% of revenue; transport fees were described as “on the order of $15–18 million” and specific ownership tax about $10 million per year. The district noted the impacts of a special legislative session bill (referred to in the presentation as “house bill 1001” as discussed by presenters) that reduced property tax revenue to emergency services in 2025 and beyond.
Albee said no final decisions have been made and the board is soliciting feedback and continuing outreach. He described the district’s desire to “control our own destiny” and said the board will consider multiple funding tools and additional public education and polling before any ballot measures.
Albee closed by asking cities and residents to engage with South Metro’s outreach website, engagesouthmetro.org, and noted the district’s preference to pursue a local solution with voter approval if needed.
The presentation did not include a formal council vote; council members asked questions and expressed appreciation for South Metro’s service and outreach.
Ending: Council members thanked the South Metro delegation for the presentation and said they would watch for future materials and potential ballot-related outreach should the district pursue a revenue measure.
