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PINE-STRAWBERRYFIREDISTRICT

GeneralElection November8,2016

VOTERBALLOTMEASUREPAMPHELT

MessagefromtheFireChief

Thepurposeofthisinformationpamphletistoletyouknowthattherecession,whichstartedin2009,createdaseriousfundingcrisisfortheFireDistrictwhichcontinuestoday.IalsowanttellyouhowthePine-StrawberryFireDistrictdeliversemergencyservicestoyouandyourfamilyandhowtherecessionhasforcedtheFireDistricttoreduceservicestoyou.Andthirdly,IwanttoprovideanoverviewofaproposedballotmeasurethatwillbeplacedontheNovember8thGeneralElectionwhichwillhelprestorelostfiredistrictemergencyservices.

TherecessionseverelyhurtfiredistrictsacrossArizona.Somelostasmuchas46percentoftheirfunding.Thiscreatedbothafundingandapublicsafetycrisisasfiredistrictseliminatedfirefighterparamedicpositionsandclosedfirestations.ThePine-StrawberryFireDistrictlost30percentofitsfunding.ThisamountedtoaonemilliondollarlosswhichhadasevereandnegativeimpactontheFireDistrictandwealsolostfirefighter/paramedics.

Inadditiontothis$1millionloss,theothercontributingfactortothefundingcrisisistheStatelegislaturesetsthetaxlevyratewhichhasnotbeenadjustedsince2005.However,thispastspringthelegislaturerecognizedthefundingandpublicsafetycrisiswasrealandpassedaBillwhichwillallowfiredistrictvoterstoapproveamodestlevyrateincrease.Ifvotersapprovethemeasure,itwillputthePineStrawberryFireDistrictonacourseofrestoringlostservices.IfyouhaveanyquestionsregardingtheFireDistrictortheballotmeasure,pleasefeelfreetocallmeat928-476-4272.

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DeclineinFunding

Theabovechartillustratesthenearly$1milliondeclineintheFireDistrictsbudgetsince2010.Theupwardbumpin2012wasonlyaresultofaone-timegrantawardof$240,000fromthefederalgovernmenttopurchaseselfcontainedbreathingapparatustoreplaceoutofdatedunits.Thestraightredbarreflectswherethebudgetwouldbetodayhadtheyearlygrowthofrevenuescontinuedwithouttherecession.Thiswouldhaveprovided$1,400,000additionalfundsforthisyear’sbudget.

Pine-StrawberryBudget–SourcesofRevenue

ThechartabovereflectstheFireDistrictsourcesofrevenueandillustratestheFireDistrictslargerelianceonthefiredistricttaxlevyforfundingthePineStrawberryFireDistrict.

$-$500,000

$1,000,000$1,500,000$2,000,000$2,500,000$3,000,000$3,500,000$4,000,000

ApprovedBudget

Budgetincreasingyearlywith3%inflaXon

80.2%

7.3%

10.5%

0.3%

1.7%SourcesofRevenue

FireDistrictLevyTax

FireDistrictAssistanceTax

AmbulanceRevenue

FirePrevenXon/PlanReview

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Pine-StrawberryBudget–SourcesofRevenue2016/2017BudgetYear TotalBudget=$2,308,798

FireDistrictLevyTax 80.2percent

FireDepartmentAssistanceTax 7.3percent

AmbulanceTransportFees 10.5percent

FirePrevention/PlanReviewFees 0.3percent

IncomeforReserveAccount 1.7percent

ThePine-StrawberryFireDistrict;ProvidingLifeSavingServicestoYou

ThePine-StrawberryFireDistrictprovidesbothfireprotectionandfullparamedicservicesfromtwofirestations–oneinPineandasecondinStrawberry.Utilizingtwofirestationsprovidesmorerapidresponsetimesofabout4minutestobothcommunities.Thisisconsideredagoodresponsetimeinthatsurvivalfromaheartattackthatcausesacardiacarrestbeginstodeclineveryrapidlyafter4minutesfollowingcollapse.Twofirestationsalsoallowsamorerapidresponsetimestofiresaswellasreducinghomeowner’sinsurancepremiumcosts.

Eachfirestationhasafirepumpertrucktofightfiresandanambulancetorapidlyrespondandtransportpatientsexperiencingmedicalemergencies.Otherequipmentincludesalarge“tanker”truckateachstationwhichcarriesseveralthousandgallonsofwatereachwhichiscriticaltofightingfires.Therearerelativelyfewfirehydrantsinthetwocommunities.

TheFireDistrictalsohasathirdambulancevehicleinreservestatusattheStrawberrystation.It’snotuncommonfortheFireDistricttoexperiencethreesimultaneousmedicalemergenciesrequiringpatienttransportation.Inthesesituations,arecallofoff-dutypersonnelisusedtostaffupthethirdambulanceandrespond.Thereserveambulanceisalsousedasareplacementvehicleshouldoneofthe“frontline”ambulanceshaveamechanicalproblem.

Annually,theDistrictrespondstojustover700emergencies.Thisaveragesabouttwoemergencyresponseseachday–sowe’refairlybusy.Foramedicalevent,ittakesparamedics2-3hoursforcrewstorespond,treat,andthentransportthepatienttothehospitalandreturntheambulanceFireDistrict.Lastyear,73.4percentoftheresponseswereformedicalemergencies,someverylifethreatening.Thislargenumberofmedicalemergenciesillustratestheimportanceofhavingparamediccapabilitiesandthreeambulancevehiclestoserveyou.

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Ourcurrentondutystaffingmodelis3firefightersatthePinestationand2firefightersattheStrawberrystation.Ofthefive,atleasttwowillbeparamedics;oneormoreateachstation.Thisstaffingprofileof5isreducedfromtheprevioustotalof6on-dutyfirefightersduetothefundingcrisis.Priortobudgetcuts,theStrawberrystationwasstaffedwith3firefighters.

Theimportanceofadequatestaffinglevelsisparticularillustratedinaheartattackresultinginacardiacarrest.Onefirefighterisrequiredforchestcompression,anothertoprovidedbreathingventilation.Next,aparamedicisneededtointubatethepatienttoimprovedventilationandyetanotherparamedicisneededtostartanintravenouslinethatwillallowaparamedictoinjectlifesavingmedications.Anotherfirefighteristhenrequiredtoobtainamedicalhistory,determinemedicationsthepatientistakingandstartdocumentingarecordofcarefollowedbycommunicatingwiththebasedhospitalphysician.Thistotalsfivefirefighter/paramedicsatminimumtosavethepatient’slife.Anythinglessslowscriticalcareandreducesthepatient’schancesforsurvival.

TheRecessionSeverelyHurttheFire-District

AspreviouslydescribedthePine-StrawberryFireDistrictlost30.2percentinrevenuesduringtherecentrecessionamountingtoonemilliondollarlossinrevenues.Tosurvivethisfundingcrisis,theFireDistricthaseliminatedthreefull-timefirefighter/paramedicpositionsandtwopart-timecivilianpositions.Thenewfirechiefisworkingareduced32hourworkweekasameanstosavemoneyandhishourlypayrateisbelowthatofthepreviousfirechief.

Inresponsetothefundingcrisis,andtosavedollars,aswellasextendingeverydollar,thePine-StrawberryFireDistrictjoinedotherfiredistrictsintheregionincreatingajointpurchasingconsortiumwhichallowedreducedcostsbasedonvolumeofpurchases.

TheFireDistrictalsojoinedotherfiredistrictsinaregionaldispatchsystemoperatedbythePaysonPoliceandFireDepartments.Soonafterthis,theGilaCountySheriff’sOfficealsomovedtheirdispatchservicestothesamecenter.Havingalltheregionspublicsafetyemergencyservicesunderoneroofatacombineddispatchcentergreatlyenhancesrapidresponseaswellasbackup-upofservices.

TheFireDistricthasalsopursuedanyavailablegrantthatwemayqualifyfor.Whilewe’veobtainedsomeawards,theawardamountshavebeensmall.

Somesavingswereachievedintheabovedescribedefforts,buttheiramountswerebelowtheinflationarycostswhichhavebeenrisingatarategreaterthananysavingsobtained.

Overtimeforfull-timefirefighterswasalsosubstantiallyreduced.OnlyifalowercostingreservefirefighterisnotavailabletofillavacantshiftduetovacationorsickdaydoestheFireDistrict

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scheduleafull-timefirefightertofillthevacantposition.Whilethispolicyreducesovertimecoststhedownsideisitalsoputsalessertrainedreservefirefighterwithlessexperienceintothevacantshift.

InflationaryCostRising

AnotherfactordelayingrecoveryistheinflationarycostofoperatingtheFireDistrictisrisingatarategreaterthanrevenuesgained.ThefirstuptickinrevenuesfromthecountyafterfiveyearsofdeclineoccurredinJulyof2015whentheFireDistrictreceivedasmallincreaseofonly$18,339ona$2.2millionbudget;but,theincreaseinhealthinsurancecostsalonewas$28,814,leavingtheFireDistricttocutelsewhere–again!

ThenextincreaseoccurredthispastJulywhentheFireDistrictreceived$66,204increaseinrevenuebuttheinflationarycostswere$74,178.TheFireDistrictendedupwith$8,000lesstooperatethefiredistrict.WhatallthisaddsuptoistheFireDistrictarebeingsqueezedmoreandmorebyinflationarycostswhichtheFireDistricthaslittlecontrolof(fuel,healthinsurance,maintenance,etc.)-excepttocutthebudget.TheFireDistrictisbeingslowlystrangled.

StallingtheRecovery:StateStatutesandRegulation

Theproblemthatispreventingfiredistrictsfromarapidrecoverybacktopre-2010fundingandservicelevelsisStatestatutesandregulation.Localfiredistrictfireboardsofdirectorsareprohibitedfromincreasingthetaxlevyrateabove$3.25ofLimitedPropertyValueassessmentestablishedbytheState.Theratewassetbylegislativeactionin2005andhasnotchangedin11years,andthestatutedidnotincludeaninflationaryformulawhichwouldlikelyhaveeliminatedthefundingandpublicsafetycrisisforfiredistricts.AnotherwaytolookattheproblemisArizonafiredistrictshavenothadapayraiseinmorethanadecade.

ArizonaStateLegislatureTakesAction

Inanefforttofindasolutiontotheproblem,theArizonaFireDistrictAssociation,tookthecrisistotheStatelegislatureseekingrelief.Thelegislature,in2015,recognizinganevolvingfundingandpublicsafetyissuewithfiredistricts,passedaBillestablishingajointSenateandHousespecialstudycommitteetitledthe“JointLegislativeCommitteeonRuralAreaFireDistrictsFundingandTaxation”.Itspurposewastostudythefiredistrictcrisisandbringaproposedbilltothe2016legislaturethatwouldaddressthecrisis.Startinginthefallof2015andintothispastspring,theCommitteeheardtestimonyfrommanystakeholdersandexpertswhodescribedthattheeconomicrecessionhashadaseverenegativeimpactonfiredistricts,someofwhichlostasmuchas46percentoftheirfunding.Theylearnedthatmorethan30percentofthestatesfiredistrictshadbeguntoeliminatefirefighterparamedicpositionsandwereclosingoffirestationscreatingaseriouspublicsafetycrisis.Theyalsoheardthatthecrisis

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wasgrowing,andwiththenewbudgetcyclestartinginJulyof2016,wouldseeseveralmorefiredistrictseliminatingfirefighterparamedicpositionsandclosingfirestationsWhichhasindeedhappened).Financialexpertstestifyingbeforethecommitteealsoprojectedthatwithoutachangeincircumstancesitcouldtakeanestimated8–12yearsforArizonafiredistrictstorecoverybackto2010fundingandservicelevels.

TheLegislativeCommitteerecognizedthatArizonafiredistrictsaretrulyinafundingcrisiswhichwascreatingarealpublicsafetycrisisduetotheclosingoffirestationsandtheeliminationoffirefighter/paramedicpositions.

ItshouldbenotedthatakeystakeholderintheCommitteehearingswastheArizonaTaxResearchAssociation(ATRA),whosegoalistoreducetaxburdensontaxpayers.ATRAalsorightlyunderstoodthatthepublicsafetycrisiswasrealandexpanding.IntalkswiththeArizonaFireDistrictAssociation,ATRAagreednottoopposeanadjustmentinthefiredistrictlevyrateto$3.50per$100ofLimitedPropertyValueassessmentasatemporaryemergencystopgapmeasuretostabilizethefundingandpublicsafetycrisis.

ThisagreementallowedthesuccessfulpassageofSenateBill1244thispastspring.BoththeArizonaStateSenateandtheHouseofRepresentativesrecognizedthepublicsafetycrisisandeasilypassedtheBillbyhugemargins.Ofthe90votescast,therewereonly3“No”votesa2Abstains.

ThePollackReportConfirmedFireDistrictsareinFundingCrisis

AspartoftheLegislativeCommittee’sinvestigation,committeemembersalsoheardfromthewellrecognizedeconomicconsultingfirm,ElliottD.PollackandCompany,whoconductedananalysisoftheeconomicsituationaffectingArizonafiredistricts.Thefirmhasapristinehistoryofaccuratelypredictingeconomicgrowthandretractionandhasarenownedreputationforprofessionalism.ElliottPollockisalsohighlyrespectedbytheArizonaStatelegislature.PollackandCompanyprovidedanindependent,thirdparty,andtransparentprofessionalreportonthecrisis.Thefirm’sconclusionsconfirmedArizonafiredistrictsaresufferingbothafinancialandpublicsafetycrisisduetotherecession.

YourHomeownersInsurancePremium

TheInsuranceServicesOffice(ISO)isanationalinsuranceorganizationthatallinsurancecompanieswritinghomeowner’scoveragereliesontoevaluateallfiredepartmentsontheircapabilities.TheISOconsidersstaffinglevels,ageofvehicles,communicationscapability,trainingandahostofothercriteria.Inadditiontothisdatacollecting,thefirmalsomakesanon-sitesitevisittoindividualfiredepartmentstoconfirmresourcesandthenpublishesarating.Insurancecompaniesthenusethatratingtodeterminepremiumfees.Thelossofrecent

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staffingfortheFireDistrict,combinedwiththepotentialclosingoftheStrawberryfirestation,willreduceourISOratingwiththenextevaluation.Thatmeanshomeownerswilllikelyfaceariseinpremiums,particularlyforStrawberryproperties.Becauseeachinsurancecompanyusesadifferentformulatodeterminepremiums,it’suncertainwhattheincreasemaybeotherthantheywillrise.Anditmaybethatthepremiummaybegreaterthantheannual$24neededtorestorefiredistrictservices.

WhattheBallotMeasureIs

TheSenateBillnowallowstheexistingtaxlevyratetoberaised25centsfrom$3.25to$3.50per$100ofLimitedPropertyValue.Thelegislationrequiresfiredistrictvoterstoapprovetheballotmeasure.Additionally,theballotcouldonlybeplacedontheNovember2016or2017GeneralElectionballots.Finally,ifapprovedbythevoters,thelevyincreaseisonlytemporaryforaperiodoffiveyearsafterwhichthelevyratereturnstothelowerrate.

BasedonthefundingcrisisfacingtheDistrict,alongwithconcernsforthecommunity’ssafetyandwelfare,thePine-StrawberryFireDistrictFireBoardofDirectorsunanimouslypassedaresolutiontoplaceaballotmeasureontheNovemberGeneralElectionforvoterstoconsideradjustingthelevyrate.

WheretheMoneyWill-TheStrawberryFireStationNeedsReplacement

ThelivingquartersattheStrawberryfirestationisasmall945squarefootbuildingconstructedin1970(46yearsago)asafamilyweekendcabinandneedstobereplaced.Itwasnotdesignedfortheheavyuseasafirestationandwouldnotmeettoday’sbuildingcoderequirements.TheFireDistrictpurchasedthebuildinginFebruaryof2002andthefirestationwasofficiallyopenedlaterintheyear.

Yearsoffightingtermitesthroughoutthebuildinghaveleftthesub-floorweakandunstablerequiringanumberofrepairs.Theroofisflatwithquestionableabilitytosupportasubstantialsnowload.Roofleakshavecreatedrepeatedmoldissuesintheinterior.Thestationisnotapleasantorsafelivingenvironmentforfirefighters.Thecoststorepairthebuildingareunreasonableandthepropercorrectionistoreplacethebuildingwithaproperlydesignedbuilding.

ThePinefirestation,builtinthemid-1970’s,alsoneedssomemodestrepairs.Additionally,theFireDistrictsAdministrativebuildingalsohassomerepairneedsincludinganewroof.

WheretheMoneyGoes-TheDistrictsAgingVehicleFleet

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ThePine-StrawberryFireDistrictvehiclesareaging.ThisinturniscreatingaconcernaboutoperationalreliabilityandtheDistrictissufferingincreasingvehiclemaintenanceandrepaircosts.

IntheAmericanfireservicethegenerallyacceptedmaximum“frontline”servicelifeofafirepumpertruckis12yearsbeforeitisreplacedwithanewtruckandthenplacedin“reservestatus”.Whileinreservestatusthevehicleisusedtoreplaceabrokenpumpertruckinorderforthecommunitytohavecontinuedfireprotection.ThefirepumpertruckatthePinestationis17yearsoldandneedstobereplaced.

AnewfirepumpertruckdesignedforthefireprotectionneedsPineStrawberrycommunitieswillcostabout$610,000.

Additionally,theFireDistrictdoesnothaveareservefirepumpertrucktomoveupwhenthereisamechanicalfailureofafrontlinepumper.ThisleaveswhicheverfirestationwhichexperiencesthebreakdownwithoutafirepumpertruckThisgreatlyreducestheDistrictsfirefightingcapability.

Ambulancevehicleshaveamuchshorterfrontlinelifeof8yearsduetohighmileageintransportingpatientsbeforebeingassignedtoreservestatus.Oneofourthreeambulancesis17yearsoldandclearlyneedstobereplacedintheverynearfuture.Withthisageandmileage,ambulancevehiclereliabilitydropsoffrapidlyandtheriskofmechanicalfailure

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increases.Anoldambulancealsocreatesapotentialhighriskeventforapatientwhenanambulancebreaksdownduringtransporttoahospital.

Anewambulancewillcostabout$174,000.

TheEconomicRecessionResultedinReducedTaxestoPropertyOwners

Startingin2009,thehousingmarketsufferedasignificantreductioninpropertyvalues.ThisinturnalsoresultedinasubstantialreductioninassessedvaluesonPine-Strawberryproperties,whichinturn,reducedfiredistricttaxes.ThefiguresbelowrepresenttheactuallyreductioninfiredistricttaxbillsforahomeinStrawberry.

2009 $722.56 2013 $523.512010 $676.99 2014 $487.752011 $683.61 2015 $492.832012 $637.03 2016 $517.50

A$205.06REDUCTIONINTAXES

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Theabovechartreflectsthedropinfiredistricttaxesoverthe8yearperiodandthispropertysawa$205.06reductionintheirFireDistricttaxbill.

7CentsaDayWillBegintoRestoreEmergencyServices

ShouldtheballotmeasurepassinNovembertheadditionalcosttomostpropertyownerswillbeaslowas7centsperdaystartingwiththeir2017taxbill-oranestimated$24totheannualtaxbill.

AdvisoryGroupSupportsa“Yes”Vote

ThispastAugust,thefirechiefassembleda5memberAdvisoryGroupoflocalbusinessandcommunityleaderswitharequesttoreviewthefundingandpublicsafetycrisisoftheFireDistrict.ThepurposeofcreatingthisGroupwastoprovideathirdparty,independent,transparentandprofessionalreviewoftheFireDistrictsituation.Thegroupwasprovidedfinancialandbudgetrecordsforreview.ThefirechiefalsoprovidedadetailedoverviewoftheFireDistrictsemergencyserviceoperationsandhowthelackoffundingfromtherecessionhashurttheFireDistrictandreducedcriticalemergencyservicestothetwocommunities.IntheopinionoftheAdvisoryGroup,theyagreedthatthefundingcrisiswasreal,thatthecrisishassignificantlyreducedemergencyservicestothetwocommunities,andthattheballotrequestwasreasonabletostabilizethesituationandGroupsupportsa“Yes”voteontheballotmeasure.

TheBallotPasses–WheretheMoneyWillGo

Therecentlypassedlegislationlimitsthelevyrateadjustmenttofiveyearsatwhichtimetheratereturnstopre-2016levels.Sincethisisatemporarymeasure,muchoftherevenue

$-

$200.00

$400.00

$600.00

$800.00

2009 2010 2011 2012 2013 2014 2015 2016

ExampleofayearlytaxbillforaspecifichomeinStrawberry

YearlyTaxBill

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generated,combinedwithsomeFireDistrictreservefunds,willgotocapitalexpenditureslistedbelow.Thiswillrelievesomemoneythatcanbedirectedtostabilizingstaffingandaconsiderationforacostoflivingadjustmentforfirefighters.

• ReplaceStrawberryFireStationLivingQuarters. $182,000

• ModestRepairsandUpgradestoPineFireStation $74,000

• ModestRepairstheDistrictsAdministrationBuilding $14,000

• GaragetoHouseReservePumperandOtherVehicles. $58,000

• 2017ReplaceanAmbulance422 $174,000

• 2018ReplaceaFirePumperTruck $610,000

• 2019ReplaceanAmbulance $185,000

• 2020ReplaceaWildlandPumperTruck $189,000

• StabilizingOn-DutyStaffing

• ConsiderationofaCostofLeavingIncrease

TheBallotDoesNotPass–MoreBudgetCuts

Aspreviouslydescribed,theinflationarycoststooperatetheFireDistrictarerisingatarategreaterthanrevenuereceived.ThenetresultistheFireDistricthasbeencuttingitsbudgeteachyear.IfthemeasureisnotapprovedinNovemberthefollowingadditionalcutswilleventuallyoccur.

FirstistheclosureoftheStrawberryfirestation.Thiswillsaveenoughmoneyinutilitiesandmaintenanceexpensestocoveroperationalcostsforatleastoneyear.ThisclosuremeansfireunitswillberespondingtoanemergencyfromthePinestationintoStrawberry.ThismeansarrivalonscenetoanemergencyinStrawberrywillbe8minutesorgreater.Apatientsufferingacardiacarrestwillhaveagreatlyreducedsurvivalprofile.An8minuteplusresponsetimetoareportedstructuralfiremeansthefiremostlikelywillexpandtoapointthatthehome,oranytrappedvictims,willbelost.

Conversely,iffirecrewsareonanemergencyinStrawberry,theremaynotbeacrewtoavailableinPinetorespondtoanotheremergencyinthePinecommunity.

Asmentionedabove,bothPineandStrawberrypropertyownerswillalsolikelyseeanincreaseinthehomeowner’sinsurancepremiums.Strawberrypropertyownerswillseeagreater

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increase.Individualinsurancecompaniesusedifferentformula’stocalculatepremiumsandthepremiumcouldbegreaterthanthe$24taxincreasepropertyownerswouldhavepaidwiththeballotapproval.

ClosingtheStrawberrystationwillcreatesomesavings.However,iftheinflationarycostscontinuingtoincreaseatarategreatertherevenuesgainedthenextstepwillbetheeliminationofadditionalfirefighter/paramedic’spositions.Thiswilleventuallyreduceon-dutystaffingto4firefighters,downfrom6on-dutyfirefightersyearsago.

Fewerfirefighterparamedicson-dutymeansfewerpeopletocompletecriticalcareneedsduringaseriousemergency,particularlyforapatientsufferingaheartattackrelatedcardiacarrestevent.Fewerfull-timeemployeesalsomeansonlyoneortwofirefightersremaininthecommunitiesforupto3hourswhenanambulanceistransportingapatienttothehospital.AndwhentheDistrictrespondstotwooverlappingmedicalemergencies(whichhappensseveraltimesamonth),thecommunityisleftwithoutanyfirefighterstorespondtootheremergenciesforaperiodoftime.

VoteNovember8th

VotingcanbedonebycompletinganearlyballotyoumayhavereceivedorbygoingtotheFirstBaptistChurchinPine,locatedat4039NorthHighway87,onElectionDaytoplaceyourvote.

20October100hrs