REC says fire-district expansion would place disproportionate tax burden on company

Chief Executive J.P. Gallagher opened the May 6 Butte-Silver Bow Council meeting and noted several agenda items before the council turned to a public hearing on a proposed expansion of the Urban Fire Protection District. Fire Services Director Zach Osborne asked the council to schedule the hearing to consider adding properties in the Montana Connections industrial area to the urban fire district.

The hearing attracted written opposition from REC Advanced Silicon Materials LLC. In a multi-page letter filed with the council, DeeAnna Worley, vice president of Butte operations for REC, said the expansion as drafted would be unfair and would place an outsized tax burden on REC. The letter summarized the department’s estimate that the expansion would raise roughly $300,000–$350,000 annually and stated that REC’s assessed value in the area represents about 70% of Montana Connections’ combined taxable value. “Applying this proportional share, REC would bear an estimated additional annual burden of up to approximately $250,000,” the letter said, and warned that the company is already undergoing operational changes and layoffs following discontinuation of polysilicon operations.

REC also told the council the company maintains its own trained, on-site emergency response squad and provides specialized equipment and training — which, the company said, reduces the practical load on the county fire department for incidents at REC’s facility. REC’s letter noted it participates in joint training and has provided equipment support, but said those contributions do not justify the concentrated tax burden the proposed expansion would create.

The letter raised a second objection on legal grounds, arguing that the proposal creates a non-contiguous taxed area that excludes other properties that benefit from firefighting services and therefore may be vulnerable to challenge under Montana’s equal-protection principles and case law. The letter asked the council to reject the expansion in its present form and to consider alternatives that more equitably distribute costs among all beneficiaries.

Council members and others raised concerns during discussion about fairness and the basis for the proposed boundary. Commissioner Jim Fisher asked whether other properties benefiting from protection were being included; the record shows opponents and proponents were noted and the council placed the item on the agenda for further consideration. Fire Services Director Zach Osborne acknowledged that the presentation was rooted in a revenue shortfall and the need to align service-area funding.

What happens next: The council scheduled the public hearing and received REC’s detailed opposition as part of the record. The council referred the matter for further committee review and additional public input before any final boundary or tax change is implemented.