Tax changes threaten funding for rural fire districts

SHERIDAN — Property tax cuts impact operating budgets for rural fire districts across Sheridan County, and department chiefs fear additional cuts will not allow for equipment replacements.

The Tongue River Fire Protection District, which provides fire protection to Ranchester and the surrounding rural area, has a budget of about $106,000 for the fiscal year. The district receives $56,000 — about 53% of its budget — from its 3-mill property tax levy. Another $22,000 comes from the general purpose excise tax, Tongue River Volunteer Fire Department Chief Jeff Barron said.

Wyoming’s 25% homeowner property tax exemption decreased the district’s annual property tax allocation by $8,858, representing a 15.8% reduction in the district’s property tax allocation and an 8.4% reduction in its overall budget, Barron said.

Wyoming’s 25% homeowner property tax exemption reduces the taxable value of a qualifying primary residence by 25%, up to the first $1 million of the property’s value.

The decrease comes as the district prepares for major equipment expenses, Barron said. Right now, the district has about $209,000 in apparatus reserves and two 2008 Type 6 engines that need to be replaced. Barron said it has received a quote of about $305,000 for a replacement Type 6 engine, meaning its current reserves would cover less than one replacement.

Barron said the district has typically been able to put $6,000 to $10,500 per year into reserves, but reduced allocations have made it more difficult to keep pace with the rising cost of fire engines.

Tongue River Fire’s budget this year also includes $75,000 for equipment with the district drawing from its reserves rather than maintaining a strictly balanced budget. Barron said that money may not be enough to replace an entire truck, but it can be used for individual components and keep aging equipment operational.

The financial strain is not limited to Tongue River.

Dayton Fire Chief Chris Bernard said his department receives even less property tax allocation.

Dayton is expected to receive about $45,000 during this budget cycle. Other districts receive substantially more, Bernard said.

Dayton currently operates seven vehicles, and Bernard said a new fire engine can cost between $500,000 and $1.15 million.

“Our fire trucks cost the same. Our PPE costs the same. Our bunker gear costs the same,” Bernard said. “We still have all the same equipment and training.”

Bernard said Dayton typically supplements its limited tax allocation with donations, but replacing aging engines remains a significant challenge. A fire truck has an expected service life of about 20 years, he said, making long-term savings essential.

“The fire district only has so much money from this tax levy to do the maintenance, upkeep and try to save money to replace the truck,” Bernard said. “So yeah, it’s a huge struggle.”

Tax breakdown

The amount of property tax allocation available to each district depends on the taxable property within its boundaries. Districts with larger or more valuable tax properties generate more revenue, Bernard said.

The Tongue River Fire District already levies the 3-mill maximum, leaving it without the option of increasing its operating levy to make up for lost property tax allocations, Barron said.

Ranchester residents also do not pay the district's 3-mill levy because the incorporated town is outside the district's taxing area. Instead, the town of Ranchester supports fire protection through a shared-service agreement.

According to a funding summary provided by Barron, the town of Ranchester provides the approximately 5,500-square-foot fire station without rent and pays identified station expenses. Town records show $12,256.65 in paid expenses during fiscal year 2025-26, including utilities, communications, insurance and other costs.

The value of the rent-free station is estimated at $60,500 to $82,500 annually based on an assumed commercial lease rate, although that figure is an imputed market value rather than money paid to the fire district. Combined with the town's direct expenditures, the town's measurable support is estimated at about $72,757 to $94,757 annually.

Barron said the relationship between the town and district has been cooperative and Ranchester also approved an additional $5,000 for equipment in the upcoming budget.

Still, Barron said there are few places for the district to turn if property tax allocation decreases. One tax and one ballot initiative on this November’s General Election ballot would impact allocations to fire districts: approving the 1% Sales and Use Tax countywide for another four years — also known as the general purpose excise tax — and the proposed initiative proposition 1, which would establish a 50% property tax exemption.

For volunteer departments, the concern is that reductions in recurring allocations can make it harder to plan for large purchases.

To address the financial strain, Barron said one potential option is sending firefighters and equipment to federal wildfires under contract, allowing the district to generate revenue while providing crews for wildfire assignments.

Barron said doing so would likely require a third Type 6 engine so the district could maintain local coverage while another truck is deployed.

The district has also discussed potentially merging with the Dayton Fire District. Barron and Bernard said the departments already work closely and provide mutual aid, but Bernard questioned whether a merger would create additional funding.

Barron said his district recently improved its Public Protection Classification from Class 6 to Class 5 for properties in Ranchester, a change reflecting improved structural fire-protection capability. Properties outside town remain Class 10. Ranchester’s improvement from a Class 6 to a Class 5 Public Protection Classification means the community has demonstrated stronger fire-protection capabilities, including its ability to respond to and protect against structure fires.

The classification is used by insurers to assess fire risk, so the improved rating could potentially result in lower property insurance costs for some properties within town limits. The scale runs from Class 1 (best) to Class 10 (worst).

Maintaining that level of service requires continued investment in firefighters, training and equipment, Barron said.

Bernard said he plans to advocate for additional funding for volunteer fire departments at county meetings following the election.

“Everyone runs on essential services,” he said. “But the amount of money that goes to essential services isn’t a whole lot.”

This story was published on Sept. 14, 2026.

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