Mayor Mara presents resolution of intent to pursue Red Lodge Willow fire-district annexation; committee debates resort-tax funding options

Mayor Mara (identified in the transcript as Mara) asked the Admin & Finance Standing Committee on April 27 to advance a resolution of intent authorizing the city to pursue annexation of the Red Lodge Willow Rural Fire District and begin petition and outreach work.

Mara told the committee staff had prepared a resolution of intent so the city could begin outreach and public presentations without committing to immediate contract terms. "This just says, we're doing that, and we may change our strategy as we need to," she said, describing plans for presentations and door-to-door outreach if required.

Members raised that annexation would reduce mill levy revenue to the rural fire district. The committee chair noted the change would leave the rural district with less funding and asked whether resort-tax funds might be used to backfill the difference; the chair said the annexation language currently indicated backfilling with resort-tax funds as an option but not a requirement. "That, since it will lower, you know, the mills going to the fire department by almost, like, 6.2," the chair said, arguing for clarity in the resolution so voters and stakeholders understood the fiscal effects.

Several members cautioned against embedding contract terms in the resolution. One member urged separating the petition/resolution work from contract negotiations with the fire district so the council could approve annexation intent while continuing contract talks in parallel. Another member warned that specifying a fixed percentage of resort-tax revenue (for example, 10%) could lock the city into a commitment that reduces flexibility if resort-tax receipts later decline; proponents countered that a percentage can provide an upside if revenue grows.

A committee member also recommended adding a whereas clause that the city would allocate funds to prevent a reduction in fire funding. Another attendee reviewed the annexation process and noted that the city holds veto power over annexations and that county opposition to a petition requires a separate petition with a 40% threshold; that member also said the fire district does not veto the petition process.

Mayor Mara and members agreed that if the council moves the resolution to action in two weeks the city could begin collecting petition signatures. The committee asked staff to finalize edits, circulate the revised resolution to the city attorney and affected boards and coordinate the signature-collection process with the elections administrator to avoid invalidated signatures.