Gallatin County approves resolution of intent to form RID to refinance Fort Ellis Fire Service Area debt

Gallatin County commissioners on Nov. 4 approved a resolution of intent to create Rural Improvement District (RID) No. 2628 to refinance debt incurred for improvements to the Fort Ellis Fire Service Area.

Nathan Bilyeu, bond counsel with Jackson, Myrtle & Grant, told the commission the district’s current outstanding indebtedness totals $5,222,116.34 and the resolution would authorize bonds up to $5,700,000 to allow flexibility for rating and bond insurance if the county chooses that route. "If we can qualify these bonds for both a rating and bond insurance, we'll actually be able to lower the interest rate notably," Bilyeu said.

Bilyeu said assessments will be based on assessable value rather than a flat per‑parcel fee, which he described as more equitable for fire and emergency service funding. He provided exemplar, conservative estimates supplied by DA Davidson: a $2.8 million market‑value property could be assessed roughly $9,000 in principal over a 20‑year term (about $759 per year under the worst‑case projection in the materials); a $1 million property could face about $3,323 in total principal (about $269 per year); a $500,000 property roughly $1,500 total principal (about $133 per year). Bilyeu emphasized those are conservative examples and the county expects to be able to price the bonds at lower interest rates than shown in the examples.

The resolution would delink the debt from the Fort Ellis Fire Service Area and place it with the separate RID, so future organizational changes for the fire service area would not automatically transfer liability. Bilyeu also described a county rural improvement district revolving fund and how pledging that fund provides an additional backstop in the event of delinquent tax payments.

The resolution sets a 30‑day protest period that begins after first publication (the notice is scheduled for publication this Saturday), with intervening holidays added as required. The commission indicated Dec. 16 as the date to hear any protests and decide whether to proceed. The board moved to adopt resolution 2025‑092 and approved it by voice vote.

Next steps: the county clerk and recorder will publish and mail required notices and begin the statutorily required protest period; the commission will consider any protests and take a final determination at the scheduled hearing.