New legislation that will allow cities such as Spokane to form a fire district within their city limits or to be annexed into a fire district adjacent to the city has passed the Legislature and has been signed by Gov. Chris Gregoire.

The measure, which was among the city of Spokane's priorities in this year's Legislature, could result in having fire and emergency services currently provided by the city instead provided by a fire district, essentially removing that big expense from the city's general fund and having a fire district tax residents to provide the services, city officials say.

The new legislation allows greater flexibility for cities as they struggle to deal with diminishing budgets, says Sheila Collins, director of government relations for Spokane.

"I think that's no mystery, those things that citizens depend on for local government are increasingly more expensive," Collins says. "With all due diligence, we need to understand how we can create a spectrum of options."

It's unclear whether or how Spokane could become part of a fire district, but the new law, which was sponsored by Spokane-area legislators, makes such a change possible. The legislation removed language from current statute that said fire districts can be created only in unincorporated areas, and increased the population limit for the size of cities that can be annexed into fire districts, putting Spokane within the new limit.

If such a change occurred, a fire district, rather than the city, would be responsible for raising money to provide fire protection, says city spokeswoman Marlene Feist.

"It could turn over some of your property taxing authority to a district," for example, Feist says.

Until now, such districts have served residents outside of cities and towns, except when a city has been annexed into a district, or in newly incorporated areas that haven't yet formed their own fire departments. Annexation is done by city or town ordinance with the agreement of a fire district's board of fire commissioners, and approved by voters in both the city and the district.

The old law allowed for a fire district to annex an adjacent city or town into the district, provided the city's population didn't exceed 100,000. The new law changes that population cap to 300,000. Spokane had about 205,500 residents in 2009.

Fire protection services in the city of Spokane account for $31.5 million, or 20 percent, of the city's general fund budget for 2010, says Feist.

She says the city hasn't studied yet whether creating a district within the city, being annexed into an adjacent district, or keeping a city-operated fire department would be the most cost-effective way to provide such services. A city also could contract with a fire district for services rather than form a district, Feist says.

"At least there is an eye on considering change," Feist says. "Maybe we find out we are doing it the most cost-effective way possible—or we don't."

Collins says the Association of Washington Cities, the International Association of Firefighters union, and the Washington Fire Chiefs association all have expressed support of the legislation, and that no one testified against the bills in the House or Senate.

Neither Spokane Fire Chief Bobby Williams nor Spokane Fire Fighters Local 29 president Mark Vietzke could be reached for comment.

"The bargaining unit clearly knows that we've sought these options, but there have been no discussions yet about what we thought would be the best way going forward," Feist says.

Collins says that creating a district to provide such services in Spokane could increase accountability for the cost of providing fire protection, fire suppression, and emergency medical services, because residents would determine what level of services they are willing to support with their tax dollars.

"When it comes to determining the level of services, it would be a very frontline accountability to residents for the citizens to have in front of them, separate from the city's general fund," Collins says.

Spokane Valley Fire Department Chief Mike Thompson says that while the legislation offers greater flexibility, there are positives and negatives for the fire districts. Spokane Valley Fire Department is a fire district that has annexed the cities of Spokane Valley, Liberty Lake, and Millwood, and serves residents of those cities, as well as some parts of unincorporated Spokane County, within its 78-square-mile area.

"Being a district, you're autonomous. You have your own budgets and your own funding source. You're not competing against the other city departments for funding," Thompson says, "but, you also have to do it all on your own. You don't have the city's human resources or legal departments."

Collins says the legislation comes at a time when options are welcome as cities wait to see the results of the state budget process, in which legislators are mulling what to do with a $2.8 billion shortfall.

"The cities are all on edge," as far as the budget outlook goes, Collins says.

Sens. Chris Marr and Lisa Brown sponsored Senate Bill 6418, and Reps. Timm Ormsby and John Driscoll sponsored the companion House Bill 2843.