SANDERS, ARIZONA — The Puerco Valley Fire District filed a voluntary Chapter 9 bankruptcy petition on July 30, following its cessation of emergency response operations six days earlier. The district stopped responding to emergency calls on July 24 due to financial insolvency, leaving residents in Sanders without local fire and medical services.

Apache County calculated that the Puerco Valley Fire District's account was about $3.09 million in deficit as of May 31. Apache County stated the district had spent more than $3 million beyond the amount its property tax levy created.

To address the shortfall, Apache County stopped passing property tax money to the Puerco Valley Fire District and used it to reduce a deficit from earlier overpayments. State law required Apache County to use new tax collections to reduce the deficit.

Apache County stated it could not lend the district money or provide funding beyond the amount authorized under state law. Property taxes supplied about 40% of the Puerco Valley Fire District's revenue during the previous fiscal year.

The Puerco Valley Fire District was based in Sanders, a community near the New Mexico border in Apache County, Arizona. The district covered about 2,500 square miles before suspending operations.

During the previous fiscal year, the Puerco Valley Fire District responded to 150 fire or emergency calls. The district also responded to 916 ambulance or medical calls in that same period.

Navajo Nation Fire and Rescue and Navajo Nation Emergency Medical Service activated emergency response plans for Sanders and other affected communities within the Navajo Nation on July 27. Navajo Nation officials directed residents to call 911 during emergencies or request assistance at 928-871-6111 or 928-871-6112.

Officials warned that longer travel distances could increase response times. The shift in coverage prompts consideration of how the Navajo Nation will sustain long-term emergency coverage for the area previously served by the district.

The closure of the Puerco Valley Fire District removes a primary emergency provider for a 2,500-square-mile region in eastern Arizona. With property taxes accounting for a significant portion of its revenue, the district's inability to cover a $3.09 million deficit led to its shutdown and subsequent bankruptcy filing.

Residents now rely on Navajo Nation agencies, which have activated plans to cover Sanders and surrounding communities. The transition involves longer travel distances for responders, which officials noted could affect response times. The bankruptcy proceedings will determine the future structure of emergency services in the area.