Hailey Property Tax Rate Would Jump to $51.44 if Fire Merger Passes

Hailey voters will head to the polls on Nov. 3 to decide whether the city’s fire department will fully merge into a regional district. The measure would consolidate local firefighting operations with Ketchum and the former Blaine County South Fire District, now operating as Blaine County Fire and Rescue.

The regional entity was formed on Oct. 1 when Ketchum and the BC South Fire District officially combined and rebranded. Kevan Crawley was hired as the chief for the new district last year, a position created specifically to manage this merger. Crawley previously oversaw multiple fire department consolidations in Indianapolis.

Crawley argued that a single command structure eliminates redundancies. "So it only makes sense that instead of having the redundancies in a small community such as Blaine County or even in a larger community like Indianapolis that you have one structure, one command structure," Crawley said. He noted that this approach allows the department to assess community risk across the entire area rather than in isolated sections.

The financial impact of the merger is a key factor for taxpayers. According to the City of Hailey, voting yes would raise the property tax rate for fire response from approximately $13.95 per $100,000 of taxable property value to an estimate of $51.44. Property tax revenue currently covers only about one-third of the local fire budget, with the city funding the remaining two-thirds from general coffers and the local option tax. However, the tourism tax cannot be used to fund expenses outside city limits, such as a regional district.

Hailey has historically kept costs low by relying on a volunteer model. The department maintained a small number of full-time staff for inspections and administration, while volunteers handled after-hours calls. Crawley stated that this model is no longer suitable for a growing population. Calls for help in Hailey have risen 67% since 2020, while county-wide calls increased by 40%.

Hailey Fire Chief Mike Baledge agreed that the volunteer model faces increasing challenges. "It's harder to get people to volunteer. It's harder for our volunteers to leave their jobs for fire calls. It's harder for them to leave their families and things like that," Baledge said. He added that while volunteers remain highly trained and dedicated, the department plans to use them to supplement full-time shifts under a different operational model.

The two departments have worked together under a temporary joint powers agreement since the summer. This arrangement proved effective during a residential fire in the Woodside neighborhood on Sept. 27. Firefighters from stations in Hailey and Bellevue arrived in less than 10 minutes. "By us getting that first crew in there with water that quickly, we were able to stop the fire spread to the next door neighbor, and we were able to contain the fire inside the house," Crawley said. The response saved 90% of the home's contents and fully preserved the neighboring property, though the neighbor may have suffered cosmetic damage from the heat.

Crawley noted that the first volunteer arrived 17 minutes after the initial call. He admitted that without the full-time response, property loss would have been greater. Both chiefs view the temporary agreement as a stopgap rather than a long-term solution. If voters reject the merger, Baledge said the city would need to quickly explore funding options for a fully staffed fire department.

There is no formal opposition to the merger, though some taxpayers may feel the tax increase is steep. Fire levy rates across Blaine County currently range from about $10 to over $100 per $100,000. Crawley said consolidation could lead to efficiencies that might lower shared costs over time. He emphasized that the merger would create a uniform tax levy and service level for all residents. "Whether you're large or small, it all translates the same. We have the same level of service, same tax levy. Everybody's paying the same for the same level of service," he said.

The issue requires a simple majority to pass. If approved, the merger would take effect on Oct. 1, 2027. The first new property tax payments related to the district would be due in January 2028.