How will East Multnomah County get fire service next year?

Right now, we don’t know. But four municipalities, their respective elected councils, and voters will have to answer that question. And the clock is quickly ticking toward a deadline.

Conversations, which have at times been contentious, have continued between the cities of Gresham, Troutdale, Fairview, and Wood Village. The crux of the problem is that Gresham wants to raise rates for its fire department, as it covers areas beyond city limits.

Gresham currently provides fire service to Troutdale, Fairview, and Wood Village at an annual cost of $4,748,460. That deal expired at the end of June 2025, which led to the four municipalities agreeing to an extended one-year contract. That contract expires at the end of June 2026.

The proposed increase is 74% ($8,285,187) per year for the small cities, though those numbers remain in flux. That hike, in addition to Gresham’s continued refusal to allow the small cities a “seat at the table” to make decisions and have controlling input, brings all parties involved to an impasse.

“All of our financials are transparent,” said Gresham Mayor Travis Stovall. “The city of Gresham is subsidizing our partners, so we want to have this conversation and find the best outcome for everyone we serve in East County.”

“We believe we offer the best service in the region with reasonable per capita rates,” he added.

Currently, Gresham residents pay more for the same level of fire service than their counterparts in Troutdale, Fairview, and Wood Village. The cost increase addresses that discrepancy, city officials say, bringing costs in line for everyone.

“They have been underpaying for fire service,” Stovall said.

Initially, all of East Multnomah County was part of Fire District 10. Gresham formed its own paid department in 1967, and contracts with the small cities have been in place for three decades.

“Gresham is a complete full-service city,” said Larry Morgan, assistant city manager. “The other communities have to figure out what they want to do and the costs associated.”

Bevy of options

Both Gresham and the small cities brought in outside consulting firms to assess the numbers. AP Triton LLC, a public safety consulting firm hired by Troutdale, Fairview and Wood Village, came up with a series of options.

“We can’t afford to pay these rates for the level of service we are getting,” said outgoing Troutdale City Manager Ray Young.

While there may be quibbles over some of the numbers, a solution needs to be found.

“We know going forward, regardless of the pathway, there needs to be a sustainable fire service for the region,” said Gresham City Manager Eric Schmidt. “The community needs to understand all the challenges.”

1. Three cities agree to a new contract with Gresham

Gresham Fire has robust infrastructure, personnel and operational capacity. There are six stations across the region, specialized equipment and teams, and automatic aid responses. No firm length is in place, but past deals have been for 10 year contracts.

This is a choice Gresham would be pleased to make, as it largely retains the status quo while removing the “subsidizing” local residents have been paying.

But it doesn’t answer the input question. Gresham has maintained it won’t cede control of the department to groups that are effectively customers.

“When you talk about ‘wanting control’ it is usually because of the cost or lack of performance,” Mayor Stovall said. “We are not delivering subpar service, and (Gresham) council is not interested in sharing control.”

At best the city would consider forming an advisory committee, which would offer recommendations. That group would have seats set aside for each city, but ultimate control would remain firmly in the hands of Gresham.

2. Three cities subcontract with Clackamas County Fire District #1

Similar to the first option while turning to a new provider. Fire District #1 covers nearly 303 square miles, with 24 community fire stations protecting about 245,000 residents. The area encompasses Happy Valley, Johnson City, Milwaukie and Oregon City, as well as unincorporated areas of Clackamas County like Boring, Carver, and Damascus.

Joining a district has the benefit of a new funding structure, which has appealed to the electeds in Troutdale, Fairview and Wood Village. The annexation would likely be for a multi-year deal.

But there are operational challenges. The district is based away from the three small cities, with sprawling Gresham blocking immediate access. Mutual aid during large incidents would be delayed, despite firefighters stationed up north. Small cities residents would also face a cost increase from what they currently pay.

3. Create a municipal fire department

An independent department would provide autonomy and allow the three cities to customize service to local needs. It also addresses that burning desire for input. This could serve as a short-term stop-gap solution, getting infrastructure and personnel in place before later transitioning to a new fire district or annexing into an existing one.

This choice would have the highest up-front capital investment. The cities would have to build at least one fire station, purchase equipment, and hire firefighters. Ongoing operational costs could also be challenging.

There is also the question of Station 75, based in Troutdale. Fire District 10 owns the station. Gresham Fire staffs it. It is unclear what its fate would be after a divorce.

4. Form a fire district among the three cities

Fire districts are special purpose government entities. Citizens within the service district fund it with property taxes, and it is governed by a board of directors. Districts operate as a separate group, pulled out from any one city’s realm of influence.

That option would allow Troutdale, Fairview and Wood Village to shape service to local needs. Separating fire from the general fund could open revenue for things like police and parks. Voters would approve levies to fund the district.

“The money freed up via a district would allow us to better maintain our amazing park facilities,” Young said. “I hope the citizens see the benefits of a fire district.”

But that brings about one of the most difficult hurdles to maneuver — the voters. They would have to approve the plan, and if one or more of the cities said no, it would scuttle the district before it ever left the dock.

5. Create a large regional fire district

This would include Gresham in the new fire district, tapping into its existing infrastructure network, equipment and personnel. Larger districts can deploy resources more efficiently and enhance response times due to economies of scale.

But the same problems remain with a district. Voters would have to agree. Gresham in particular has been averse to any decisions that increase tax rates. There are also several legal hoops to jump through mandated by the state.

6. Sign another short-term extension

If nothing goes to plan, the four cities could agree upon another extension to the current contract. Though that would buy more time, each city’s leadership wouldn’t relish continuing these conversations and debates another year.

Uncertain future

None of this will be easy, regardless of the decision ultimately selected.

First each of the four city councils will have to decide amongst themselves which option best fits their community and constituents.

While the three small cities have been united thus far, there are scenarios where they split. For example, Fairview could decide to sign a new contract with Gresham tomorrow. That would yank the life-support on any district or independent department attempt.

While the current contract runs through next summer, no one wants to wait that long. The small cities need time to implement whatever plan is chosen. Gresham has set an internal deadline for Dec. 31. The goal is for Gresham Council to begin whittling down the options in the coming months.

“We will have a roadmap by the end of the year,” Schmidt said. “But there are still lots of conversations to be had.”

Stretched thin

The Gresham Fire Department is stretched thin. The coverage area is sprawling, and the department has not kept up with the growth of East Multnomah County. Many stations are decades old, and there are “gaps” where new stations are needed.

“In a perfect world we would have a fire station on every street corner,” Mayor Stovall said. “But we have to balance that desire with what we can afford.”

If money became available there is a hierarchy of where a new station would be located. With hundreds of homes being built annually, the first choice is Southeast Gresham. Next on the list would be up north, likely somewhere within the Wood Village footprint.

“We cover the north region well, but that is a hole for the department,” said Gresham Fire Chief Derik Minard.

In some ways it would be easier if the small cities broke away, allowing Gresham to focus on a smaller footprint. But that isn’t how leadership is thinking. They want to continue serving the region. It has become something of a point of pride, a chance to celebrate the unity and collaboration between all the cities in East Multnomah County — which continues to be strong despite some of the back-and-forth around fire coverage.

“We don’t feel like we are digging our heels in. We want the best fire service at the best cost,” Mayor Stovall said. “They have been getting a historically good deal. Now we are at a point where there needs to be an increase in the rate.”