A lawsuit in Douglas County pits two governmental agencies against each other over allegations of “siphoning” money away from fire protection services.

The South Metro Fire Rescue Fire Protection District filed a lawsuit in Douglas County District Court in Castle Rock against the Parker Authority for Reinvestment, alleging that Parker is illegally diverting economic development funds that are supposed to be used for fire services.

The issue is tax increment financing, a popular way for governments to raise money for redevelopment projects. Governments divert future tax revenue and apply it towards economic development projects.

The Fire District alleges that Parker is receiving and spending the money in violation of state law, which requires urban renewal authorities to incur bonds or debt before collecting TIF money. The lawsuit states that Parker never issued bonds or debt, though in 2008 it floated the idea of a bond reinvestment program.

“Parker is siphoning off money that is voter approved for fire protection services. People in Parker shouldn’t have to choose between public safety and economic development,” said South Metro Fire Chief Bob Baker in a statement.

The Parker Authority for Reinvestment maintains that it is not illegally diverting funds, suggesting that it has no legal obligation to share any TIF dollars with the Fire District. It says it has only been “discussing” cooperatively sharing funds.

“We believe partnerships and collaboration make our community better,” PAR said in a statement. “PAR was earnestly working to find a solution that would best serve the Parker community.

“We are disappointed and surprised by South Metro Fire Rescue’s actions and inflammatory statements as PAR always has and will continue to operate in compliance with state law.”

The economic development authority said it plans to have a more detailed response on Monday.

The Parker Authority for Reinvestment’s mission is to “foster development and redevelopment that maintains our community’s quality of life and our public spaces through alleviating and preventing blight.”

Baker said his Fire District has been trying to negotiate an agreement “to allow Parker to continue its economic development activities and maintain adequate funding for fire protection.”

“But we’ve hit a wall with Parker and this is our only option at this point,” Baker added of the lawsuit.

The lawsuit contends that through 2016, the Fire District has been deprived of more than $300,000 in “lost revenue.” It estimates that over 25 years, it would lose more than $16 million.

The crux of the case aims at halting funds from flowing to PAR.

“This is money that would go to first responders’ needs like equipment for cardiac arrests, thermal imaging cameras to find people in smoke-filled rooms and ballistic vests in high-risk situations,” Baker said.