2014 Operating Budget

Transcription

1 2014 Operating Budget

2 2014 Operating Budget Snohomish County Fire District # Meridian Avenue Everett, Washington 98208

3 ELECTED OFFICIALS David Chan Chair, Position 3 Term Expires December 31, 2017 Bob Meador Vice Chair, Position 4 Term Expires December 31, 2013 Karen Dingmon, Position 1 Appointed to fill vacant position until the November 5, 2013 election is certified. Richard Schrock, Position 2 Term Expires December 31, 2015 James Kenny, Position 5 Term Expires December 31, 2013 ADMINISTRATIVE STAFF Edward C. Widdis, Fire Chief Brad Reading, Assistant Fire Chief Mark Correira, Assistant Fire Chief Bill Cushman, Budget Director Kathleen Junglov, Finance Director

4 ABOUT THE DISTRICT The Snohomish County Fire Protection District No. 1 (SCFD#1) is a special purpose government that provides fire protection services, fire suppression services, emergency medical and protection of life and property to south Snohomish County and is supported primarily through property taxes and contract revenue. The District was incorporated on January 1, 1945 and operates under Chapter 52 of the Revised Code of Washington (RCW) and other laws of the state of Washington applicable to fire districts. SCFD#1 has been a leader in promoting fire service regionalization for a decade beginning with a successful merger with Snohomish County Fire District #11 in In 2005, the District consolidated with the Mountlake Terrace Fire Department to provide service to the cities of Mountlake Terrace and Brier, and in 2009 entered into a similar agreement with the City of Edmonds and an agreement with the Town of Woodway for

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6 Table of Contents 2014 Fire Chief s Budget Message... 1 District Vision and Goals... 3 Budgetary and Financial Goals... 4 Budget Development Process... 4 Financial and Budgetary Policies and Guidelines... 8 Fund Summary General Fund Resources General Fund Expenses Board of Fire Commissioners Program Office of the Fire Chief Program Administrative Services Program New Hires Program Public Information Program Non-Departmental Expenses Program Finance Program GIS Mapping Program Communications & Technology Program Station Operations Program Volunteers Program Safety Program Prevention & Education Program Emergency Medical Services Program Technical Rescue Program Hazardous Materials Program Physical Fitness & Wellness Program Training Program Apparatus Maintenance Program Facilities Maintenance Program Reserve Funds and Accounts Emergency Reserve Account Apparatus Reserve Account Facility/Major Maintenance Reserve Account Land Acquisition Reserve Account Equipment Replacement Reserve Account LEOFF 1 Retiree Medical Expense Reserve Account Compensated Absences Reserve Account Healthcare Self-Insurance Health Fund Page Page i

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8 COMMISSIONERS OFFICE OF THE FIRE CHIEF, EDWARD C. WIDDIS David Chan, Chair Bob Meador, Vice Chair Jim Kenny Richard Schrock Karen Dingmon November 20, 2013 Members of the Board of Commissioners, Residents and Staff of Fire District 1, On October 8, 2013, I presented to you my proposed budget for The proposed budget was developed based on parameters established by the Board of Commissioners. During October and November, the Commissioners discussed the proposed budget and requested some additional information. On November 19, 2013 the Board adopted the 2014 Budget. The final adopted budget included items in the budget as proposed on October 8 th, as well as the Board additions which included a Public Educator in the Prevention Division, and a peak activity unit to be located at Station 21 (i.e. the hiring of four additional firefighters). The funding for the Board additions is from a one-time transfer from the Facility/Major Maintenance (Building) Reserve. Here s a brief overview of how the budget, as proposed on October 8, 2013, was developed: General Fund - After several years of declining property values, the District kicked off its 2014 budget development process in July with good news from the County Assessor s Office in that the District s assessed valuation had increased by 10%. Although a welcome change from the decreases the District had been experiencing for the previous four budget cycles, the Board continues to take a conservative position by limiting General Fund Expenses to annual Revenues. In August, I requested and received initial direction from the Board to develop the 2014 budget with the inclusion of banked capacity when forecasting 2014 Property Tax Revenue. In brief, even though the District s assessed value had increased by over 10%, the District does not automatically receive a like increase Property Tax Revenue unless the Board takes action which includes an authorization to utilize banked capacity. This was a significant decision in that use of banked capacity resulted in approximately an additional $2 million in revenue for 2014 and future years as well. Another factor impacting the District s budget is several uniformed personnel have retired over the past few years. However, due to the financial challenges the District had been facing, the vacant positions were unfunded and no hiring occurred. In October, I requested and received Page 1

9 authorization from the Board to hire five firefighters. The plan is to have the new hires on board by the end of The additional costs for the new hires are included in the 2014 Budget and future years. At the same time, our EMS Division informed the Board that Verdant Health Commission of Snohomish County had awarded the District a grant in the approximate amount of $300,000 to be used to develop a Community Paramedic Program - providing for a sixth new hire. Continuing negotiations with the International Association of Fire Fighters (IAFF) overshadow the budget process. The most recent contract with the IAFF was for the years Until we have finalized a contract with the IAFF, Salary and Benefit budgets for union personnel are approximate. The Budget does, however, include an estimated amount for a Cost of Living Increase for all represented and non-represented employees. For the third straight year, I have held Division maintenance and operations (M&O) budgets to approximately $6.2 million. In past years, M&O budgets have been amended and increased for one-time expenses; however, the elevated budget amount has not been carried forward. How to meet the future need of the District is still to be determined. One option is a Fire Benefits Charge (FBC). I appreciate the opportunity to respond to the request made by the Board to report back on how instituting a FBC would impact the District. Reserve Funds - At this time, only costs for scheduled apparatus and equipment replacements are included in the ABLE reserve fund expenses. For additional information regarding these and other reserve funds expenses, I encourage you to review the individual reserve programs found in the Reserve Funds and Accounts section of this document. Bond Fund - I am pleased remind you that the District s only bond issue was fully paid off in Healthcare Self Insurance Fund - The District launched a healthcare self-insurance program in For 2014, costs are anticipated to increase by 12%. Respectfully, Edward C. Widdis Fire Chief Page 2

10 Fire District No. 1 Vision & Goals Approved by the Board of Commissioners July 19, 2011 VISION: In the last decade Snohomish County Fire District No. 1 became one of the fastest growing fire departments in the nation. Now serving 227,703 South County residents, we are the largest fire department in Snohomish County and one of the largest suburban fire protection agencies in the state. With such growth has come new challenges and opportunities to improve our service delivery capability. The District s widely diverse 47-square mile service area has been hard hit economically during the recession. The District s financial resources have been reduced as we rely primarily on property tax for support at a time when home values have been declining. To balance our annual budget, the District must find sufficient resources to maintain its traditionally high standards of quality service. That requires some changes in how our fire department administratively manages its resources and how it operates. The District is pursuing new ways to reduce unnecessary costs and eliminate redundancy. Some new efficiencies of scale may be possible by partnering with other agencies through regional consolidation in South Snohomish County. Fire District No. 1 envisions: A. Partnering with fire agencies across jurisdictional boundaries to deliver faster, highest quality service. B. Allocating available resources efficiently to provide essential, high quality of services to the public. C. Maintaining sufficient well-trained and capable professional staff to meet future public safety needs. GOALS: Maintain and enhance the District s financial health and stability for foreseeable future Provide funding for adequate amount of staffing to achieve desired service levels for existing call loads Increasingly enhance fire and EMS service delivery capability by partnering with neighboring jurisdictions Update capital improvement plans to maintain and operate facilities in sustainable, earth-friendly ways Effectively communicate with our neighborhoods and with the communities we serve Develop a broader-based means for adequately funding future fire and EMS services in the area Adopt a new District emergency preparedness plan for recovery from disasters and health emergencies Define best standards of service we can reasonably provide and find ways to consistently deliver it Provide District personnel with wages and benefits that are scaled competitively with industry standards Create a productive, financially sound, stable and safe working environment for all employees Educate public on identifying true health emergencies, preventing fires and promoting health and safety Encourage staff and labor to jointly evaluate and improve operations by eliminating unproductive spending Prevent incidents before they happen through vigorous fire and EMS prevention programs and codes These goals provide a general framework for our District s objectives. They provide future program direction and emphasis and are a guide to District services priorities contained in our overall Strategic Plan for They encompass key challenges inherent in meeting expected future population growth in our area while dealing with the current economic realities reducing agency funding. Having increased demand for public safety services but with less funding available to maintain service levels presents enormous challenges. But our goals are achievable. We must institute ways to offset reductions in property tax revenue through better use and deployment of existing resources. The District s Board of Commissioners has identified specific actions, strategies and a work plan to accomplish all this. Though it will not be easy, better allocation of our limited human and financial resources will enable the District to meet various contingencies within future budget timeframes. To keep providing the highest quality of service requires continued dedication from our superbly competent and dedicated workforce of firefighters, paramedics and administrative staff. Fire District No. 1 will continue to explore new opportunities to partner with other Fire Protection agencies through regional consolidation. Accordingly, Commissioners have joined with neighboring cities and Fire District No. 7 to plan for the possible formation of a Regional Fire Authority (RFA) in South Snohomish County. Page 3

11 BUDGETARY AND FINANCIAL GOALS To provide a financial base sufficient to sustain fire and emergency medical services to the community to preserve life, property, and the environment. To be able to withstand local and regional economic trauma, to adjust to changes in the service requirements, and to respond to other changes as they affect the community. To maintain an excellent credit rating in the financial community and assure taxpayers that District government is well managed financially and in sound fiscal condition. BUDGET DEVELOPMENT PROCESS At the October 2, 2012 meeting of the Board of Commissioners the Board adopted Policy Budget Development Process Guidelines, which in essence directed the Board to adopt budget guidelines that establish a process for budget development no later than June 30 th of each year. Following are the guidelines and the process adopted for the development of the 2014 Budget. Budget Philosophy and Process A set of guidelines in support of the development and formulation of an operating budget, a reserve budget, and a capital budget on an annual basis, as well as a strategic, long-term basis. Identify Participant Responsibility in the Budget Process In identifying a general philosophy for the creation and development of various budgets, the following concepts will clarify the participation of the principals in the formulation of the financial plans for Snohomish County Fire District 1. It is useful to understand that the development of the Snohomish County Fire District 1 budget takes place within the context of three compacts. The compacts define the participants, their respective roles, the venues in which they conduct business, and the scope of their respective duties. Three compacts govern the roles of the four participants identified as the Board, the Fire Chief, Program Manager, and Staff. The principals are: 1. Commissioners 2. Fire Administration 3. Program Mangers 4. District Operational and Support Staff Page 4

12 For purposes of defining the various roles of the four principals named above, we will characterize their relationships with each other as a compact whereby participants identify their obligations, expectations, and results. Each budgetary compact revolves around a very specific budget, the structure and content of which is specifically tailored to the participants and their level of authority within the District 1 organization. Order of Budget Development Budgets are not developed randomly or in isolation from their organizational environment. It is important that a logical path of formulation be followed in order to derive the benefit of a systematic process. LEVEL 1: The Allocation budget is developed first based upon the priorities and goals expressed and adopted by resolution at the Board level. In this way, the Commission can be satisfied that the general distribution of assets and resources is aligned with the priorities of the District and in the best position to assure accomplishment of organizational goals. LEVEL 2: The program budgets are developed after the allocation budgets have provided guidelines for the general allocations of resources. Once the initial allocations are approved and adopted by resolution, the administration can organize the allocations into manageable and measurable units within the organization under the supervision and oversight of assigned program managers. LEVEL 3: The object budgets are developed after the program budgets have been organized and allotted a limited amount of resources consisting of staff and operational dollars. Object code expense categories are the lowest (most detailed) level of budget entries and defined, statemandated accounting categories. LEVEL 4: The line-items lists are developed after the object code budgets have been apportioned and approved within each program. Budget Calendar Spring Workshop: May COMMISSIONERS: Establish and Affirm Budget Guidelines and Goals COMMISSIONERS: Review the Preliminary Allocation Budget and Strategic Outlook COMMISSIONERS: Identify Contribution to, or withdrawals from, the Reserve Accounts COMMISSIONERS: Set beginning and end cash balance targets The Spring Workshop should be a forum for the Board to discuss, deliberate, and adopt by resolution, a list of specific goals to be accomplished, along with a calendar of target dates by Page 5

13 which progress will be measured. Any information identifying changes to the current budget, particularly as it regards revenues, expenses, capital acquisitions, and the like, will be identified along with recommended actions as required. It must be stressed that it is virtually impossible to develop an allocation budget in support of District strategic goals until the Board articulates its positions and expected results are adopted in writing in the form of a Commission resolution. Once the resolution is adopted it becomes the defining point of reference that will be used as the foundation upon which the administration will develop the next steps in the budget process. Budget Workshop: June COMMISSIONERS: Adopt Resource Allocation Guidelines by Resolution. Resources are allocated to Program Operations and Reserves Accounts In June, before the Administration creates program budgets, the Board should devote considerable time to an examination of the general allocation of District resources and the strategic outlook regarding the financial stability over a of five year planning horizon. It is necessary to understand the long-range status of the District as a whole, before program budgets are developed. Any information identifying changes to the current budget, particularly as it regards revenues, expenses, capital acquisitions, and the like, will be identified along with recommended actions as required. It must be stressed that it is virtually impossible to develop program budgets in support of District goals until resource allocations are adopted in writing in the form of a Commission resolution. Once the allocation resolution is adopted it becomes the point of reference that will be used as the foundation upon which the administration will formulate the next steps in the budget process. Budget Workshop: July CHIEF: Introduce the Program Budgets and Reserve Accounts COMMISSIONERS/CHIEF: Review the Strategic Outlook for Operations and Reserves COMMISSIONERS/CHIEF: Adjust Goals, Allocations, Programs as needed COMMISSIONERS: Adopt the Program Budgets Resource Allocation by Resolution The July Budget Workshop is the forum for the Fire Chief to introduce the Program Budgets which will distribute staffing and financial resources in conformance with the allocation policies and budget adopted by Commission resolution in June. Any information identifying changes to the current budget, particularly as it regards revenues, expenses, capital acquisitions, and the like, will be identified along with recommended actions as required. Page 6

14 Budget Workshop: August COMMISSIONERS/CHIEF: Review the Strategic Outlook COMMISSIONERS/CHIEF: Modify Goals, Allocations, Programs and Reserves as needed The Commission has now reviewed: Policies, Guidelines, Priorities, and Policies The Allocation Budget The Program Budgets The Reserve Accounts The Strategic Outlook Over 3 Years At the August Budget Workshop, the Board has the opportunity to review and concur, or re-align, as necessary, their own goals and targets that have been incorporated into the Allocation and Program Budgets. Because the Fire Chief has presented Program Budgets in conformance with the original vision of the Board, any changes identified can now be used to modify the submitted programs. Any information identifying changes to the current budget, particularly as it regards revenues, expenses, capital acquisitions, and the like, will be identified along with recommended actions as required. Specifically, information regarding assessed values for the subsequent fiscal year will be disclosed, along with a description of impacts on property tax revenue and levy rates. Budget Workshop: September COMMISSIONERS/CHIEF: Review Strategic Outlook COMMISSIONERS/CHIEF: Review the Operating, Reserve, and Self-Insurance Program Budgets. Make final revisions as required. In September, following the Board s re-affirmation of the original or revised budget policies and guidelines, and the articulation of broad goals, and the alignment of program resource allocations, the Fire Chief will present for final review and acceptance, the program/object budgets which will display the staffing assigned to each along with a listing of line-item object-code expenses in conformance with the state-prescribed BARS Accounting System. Any information identifying changes to the current budget, particularly as it regards revenues, expenses, capital acquisitions, and the like, will be identified along with recommended actions as required. Budget Workshop: October COMMISSIONERS/CHIEF: Final Strategic Outlook Review COMMISSIONERS/CHIEF: Final Program Budgets and Reserve Accounts Review Page 7

15 COMMISSIONERS: Adopt the General Fund, Reserve, Self-Insurance Fund Budgets as FINAL Public Hearings to include: Budget Hearing Property Tax Levy Rates Following six budget workshops from April through September, the Board will be presented with final budget documentation, in a format ready for adoption, along with all necessary resolutions as required by law for transmittal to the County to authorize the collection of regular property taxes, EMS property taxes, and bond excess-levy property taxes. Any information identifying changes to the current budget, particularly as it regards revenues, expenses, capital acquisitions, and the like, will be identified along with recommended actions as required. FINANCIAL AND BUDGETARY POLICIES AND GUIDELINES Fire District 1 develops and formulates its budget and strategic outlook based on a series of past practices and general guidelines which have been in place for a number of years. This section of the budget document identifies the guidelines that govern the formulation of financial decisions. In 2012 the District converted several of these guidelines into formal policies. Over the next several years, the District will continue the process of formalizing the guidelines into policy statements that will more precisely define the actual financial and budgetary practices undertaken by the Board. Snohomish County Fire District 1 is committed to providing the highest quality life-saving services to the community within the community-support level of taxation. The District recognizes the importance of accounting for the use of public funds. These financial guidelines govern the formulation of the budget, its revenues and expenditures, and reserve activities, accounting and reporting to keep the public, the Commission, and the staff fully informed about our financial status on a continuous basis. Board Adopted Policies General Fund Working Capital Balance: Policy The District revenues are primarily made up of property taxes. As a result, significant collections occur at two times during the year, May and November. This results in certain months where revenues for the current year s budget have not been received even though expenditures are being incurred. These are typically cash deficit months. As a policy matter, the District must determine how to provide sufficient cash during these cash deficit months to sustain operations. Policy: It is the policy of the District to maintain sufficient cash in the General Fund as of December 31, to provide for cash flow needs through April of the ensuing fiscal period. As recommended by Page 8

16 GFOA, the target amount shall be approximately two months (17%) of regular general fund budgeted operating expenditures. Emergency Reserve Account: Policy Revenue Issue: The District relies upon a stream of revenue that is collected throughout the fiscal year. While most revenue is fairly predictable, disruptions in the collection patterns can and do occur. In case revenues fail to meet budget expectations, an emergency reserve may be drawn upon to make up for any revenue shortage. Expense Issue: From time to time, the District may face an unexpected expense unforeseen during the budgeting or strategic planning process. An emergency reserve may be drawn upon to meet the rare, unplanned emergency expense without disrupting the carefully planned services and programs. Exceptional Acquisition: In similar fashion, an unexpected expense may be identified that, while not of an emergency nature, can be shown to be of exceptional value to the District. The emergency reserve can be a source of funds by which an opportune item of value may be obtained without reallocating the resources already allotted to other services and programs. Policy: It is in the best interest of The District and the communities it serves to establish a longrange financial plan; therefore the Commissioners shall create a separate Emergency Reserve Account and contribute to this account from time to time until a target of not less than $2 Million dollars is reached. Apparatus Replacement Reserve Account: Policy The District has acquired a large fleet of rolling stock that is utilized for the delivery of services on a daily basis. Every piece of apparatus has a finite life cycle that determines the frequency of replacement for each vehicle. As a policy matter, the District must determine how to provide for the replacement of District apparatus. Policy: The District desires to continue with its practice of setting aside a portion of its annual revenues for the future acquisition of apparatus; therefore the Commissioners shall create a separate account, and contribute to this account amounts necessary to maintain an average target ending cash balance of $500,000. Facility and Major Maintenance Reserve Account: Policy The District has acquired buildings and facilities that require periodic capital reinvestment for improvements, remodeling or major repairs. Occasionally, a completely new facility may be required. The District s facilities are a central part of the service delivery system and it is important Page 9

17 that they are maintained in good working order. As a policy matter, the District must determine how to provide for the repair and replacement of District facilities. Policy: The District desires to continue with its practice of setting aside a portion of its annual revenues for the future acquisition new facilities, facility improvements, remodeling, or major repairs; therefore the Commissioners shall create a separate account, and contribute to this account amounts necessary meet the annual and future Facility/Major Maintenance needs. Land Reserve Account: The District has historically acquired parcels of land in locations deemed suitable for future station development. As a policy matter, the District must determine how to provide for the acquisition of land. Policy: The District desires to continue with its practice of setting aside a portion of its annual revenues for the future acquisition of land; therefore the Commissioners shall create a separate account, and contribute to this account amounts necessary to meet the Districts future need for land. Equipment Replacement Reserve Account: The District has acquired a significant stock of equipment that is utilized for the delivery of services on a daily basis. Every piece of equipment has a finite life cycle that determines the frequency of its replacement. As a policy matter, the District must determine how to provide for the replacement of District equipment. Policy: The District desires to continue with its practice of setting aside a portion of its annual revenues for the future acquisition of new or replacement equipment; therefore, the Commissioners shall create a separate account, and contribute to this account amounts necessary to maintain an average target ending cash balance of $500,000. Compensated Absences Reserve: Policy The employees of District 1 are entitled during their tenure of service to accumulate time banks of vacation and sick leave hours. Although the maximum number of hours in either time bank is limited by labor agreement for union employees or District policies for appointed or exempt staff, the accumulated hours can result in sizable payout upon retirement. As a policy matter, the District must determine how to provide for the cost of retirement leave bank payouts. Policy: The Commissioners shall create a separate Fund, and contribute to this fund, amounts necessary to maintain an average target ending cash balance of approximately 5% of the compensated absences liability as reported in the latest published Annual Financial Report. Page 10

18 LEOFF 1 Retiree Medical Reserve: Policy In accordance with RCW the District is responsible for providing post-employment healthcare benefits to employees who retire under the LEOFF 1 System. The medical claims are actuarially forecast to continue until approximately As a policy matter, the District must determine how to provide for the funding of this liability. Policy: The Commissioners shall create a separate Fund, and contribute to this fund, amounts necessary for maintaining sufficient funds to meet annual and future medical claims for retired LEOFF 1 employees. General Budgetary and Financial Guidelines Separate Funds are established to account for Operations, Reserves, Debt Service, and Medical Self-Insurance. Each fund has an annual budget prepared for Board review, approval, and adoption. The annual budget is reviewed by the Board of Commissioners at the object code level and adopted at the fund level. Beginning fund balances and ending fund balances, in addition to annual revenues and expenses, are budgeted in each Fund. The District considers the budget to be balanced when each separate Fund s total resources of beginning balance plus current revenue are equal to anticipated expenses plus ending balance. No budget may be adopted by the Board that exhibits a negative fund balance or anticipated deficit within the subsequent two years. Long-Range Financial Planning The District has a financial planning process that assesses the long-term financial implications of current and proposed policies, programs, and assumptions and that develops appropriate strategies to achieve District goals. The District avoids adopting budgetary procedures that result in balancing current operational costs at the expense of future years operations. The District prepares multi-year projections of revenues and expenditures for each fund and for existing and proposed new programs. Revenue Projections The District maintains an in-depth understanding of its major revenues and prepares multiyear projections of revenues and other resources. Page 11

19 The District estimates its annual revenues by an objective, analytical process using models designed to replicate historical revenue trends and to forecast future income with a high degree of continuity. Revenues which are sensitive to both local and regional economic activities and revenues which are difficult to accurately project are conservatively estimated in order to avoid serious budget adjustments later in the fiscal year if budgeted revenues fail to materialize. Significant one-time, non-recurring revenues from such items as sale of assets are allocated for one-time expenses or be deposited in an appropriate reserve account for future needs. The District will review annually and make available to the Finance Committee an analysis of potential major revenue source before going to the full Board for review. Grants are pursued only for those programs and activities that address recognized needs and are consistent with the District s published goals and objectives. Billable revenues for contract services are processed in a timely manner to minimize negative cash flow impacts. In each odd numbered year, the District will review user fees to adjust for the effects of inflation and other factors as appropriate. Expenditure Projections The District designs and structures service levels in the context of financial sustainability. The District makes every effort to minimize budgetary expense growth through the use of sound management techniques and the encouragement of technology or process improvements which reduce service costs without reducing service quality. Expenditures are estimated to increase at the assumed level of inflation or based upon known growth patterns. The Districts operating budget will not use significant one-time revenues to support ongoing expenditures. The District maintains expenditure categories as prescribed in the Budgeting, Accounting, and Reporting System (BARS) published by the State Auditor s Office to ensure compliance with the adopted budget appropriations. All supplemental appropriations for programs (appropriations requested after the original budget is adopted) will be considered as a result of the availability of new revenues (such as additional cash carried forward or unanticipated grants). One-time expenses require specific authority to be carried forward into subsequent budgets. Page 12

20 Debt Level and Capacity Under Washington State law, the Board of Commissioners may approve bond issues and/or lease purchases for general purposes up to.375% of the value of taxable property within the District without a vote of the people. Additionally, with a 3/5ths vote of the people, the District may issue debt for capital purposes. The combined total of non-voted and voted debt cannot exceed the legal limit of.75% of the value of taxable property within the District. Debt Issuance and Management The District s objective is to plan and direct the use of debt so that debt service payments will be predictable and manageable part of the operating budget. Board approval is required prior to the issuance of any debt. An analytical review will be conducted prior to the issuance of debt to assure that the liability created can be serviced over the life of the debt with predictable and stable cashflows. The District will engage legal bond counsel in preparation of all bond representations. The District will engage a financial advisor and bond marketing firm in preparation of all bond sales to prepare the bond prospectus and other related marketing, retail or institutional sales, private placement, distribution, and registration of bonds. The District will create a separate Debt Service Fund to account for the accumulation of funds required to meet semi-annual interest payments and annual principal payments. Short-Term Debt Guidelines Short-term debt is defined as a period of three years or less. The District may use short-term debt to cover temporary cash flow shortages, which may be caused by a delay in receipting tax revenues or issuing long-term debt. The District may issue interfund loans rather than outside debt instruments to meet shortterm cash flow needs. Interfund loans will be permitted only if an analysis of the affected fund indicates excess funds are available and the use of these funds will not impact the fund s current operations. All interfund short-term borrowing will be subject to Board approval and will bear interest based upon prevailing rates. Long-Term Debt Guidelines Long-term debt is that debt which exceeds three years. The District will not use long-term debt for current operations. Acceptable uses of bond proceeds are for capital expenditures or acquisitions that cannot reasonably be financed on a pay-as-you-go basis from anticipated cash flows. Page 13

21 Refunding bond issues designed to restructure currently outstanding debt is also an acceptable use of bond proceeds provided that the net present value (NPV) of savings is at least four percent (4%). The District will maintain good communications with bond rating agencies about its financial condition. The District will follow a policy of full disclosure on every financial report and bond prospectus including proactive compliance with disclosure to the secondary market. General Obligation Bond Guidelines Every project proposed for financing through general obligation debt shall be accompanied by a full analysis of the future operating and maintenance costs associated with the project. Bonds cannot be issued for a longer maturity schedule than a conservative estimate of the useful life of the asset to be financed. As a precondition to the issuance of limited tax general obligation bonds, alternative methods of financing should also be examined. Before general obligation bond propositions are placed before the voters, the capital project under consideration should have been included in a Commissioner-approved Capital Plan. The source of funds should describe the intended use of bond financing. Financing of Lease Purchases Lease purchase financing may be used when the cost of borrowing or other factors determined to be in the District s best interest. Cash Management It is the District s policy to invest all temporary cash surpluses. Funds are invested in only those instruments permitted by Federal and State law as it relates to public funds. All of the District s funds are invested with the following objectives (listed in the order of priority): Safety: Investments are undertaken in a manner that seeks to ensure the preservation of capital in the portfolio. Specifically, the District will: (a) Seek to avoid realizing any loss through the sale or disposal of an investment; and (b) Seek to mitigate the risk of unrealized losses due to a decline in value of investments held in the portfolio. Liquidity: The investment portfolio remains sufficiently liquid to meet all cash requirements that may be reasonably anticipated. This will be accomplished by structuring the portfolio in the following manner: Page 14

22 (a) The District purchases investments scheduled to mature in accordance with its anticipated cash needs, in order to minimize the requirement to sell investments prior to maturity; (b) A portion of District funds will be maintained in cash equivalents, including money market funds, investment pools and overnight securities, which may be easily liquidated without a loss of principal should an unexpected need for cash arise; and (c) The portfolio will consist largely of investments with active secondary markets. Yield: The District s investments will be designed with the objective of maximizing a fair rate of return consistent with the safety and liquidity noted above. Accounting, Auditing, and Financial Reporting The District has established and maintains a high standard of internal controls and accounting practices. The accounting system will maintain records on a basis consistent with accepted standards for local government accounting and the State of Washington Budgeting, Accounting, and Reporting Systems. Financial reports, including a review of budgeted revenues and expenditures by fund, are prepared and reported to the Board on a monthly basis. A fixed asset system will be maintained to identify all District assets, their location, and their condition. The District will ensure that District s records are audited annually and which will result in the issuance of a financial opinion. The results of such audit are to be available to the public via the District s website. Page 15

23 FUND SUMMARY Snohomish County Fire District 1 organizes its financial structure around seven Funds. A fund is a self-contained accounting entity that encompasses a beginning cash balance as of January 1, internal transfers of money into the fund from another fund, revenue earned by and deposited directly into the fund, expenses by the fund, transfers out to another fund, and finally, an ending cash balance as of December 31. The ABLE Reserve Fund contains four separate, self-balancing accounts: the Apparatus Reserve; the Facility/Major Maintenance (formerly Building) Reserve; the Land Reserve; and the Equipment Reserve. Following are summary tables for all of the funds and accounts, detailed information on each of the funds and accounts can be found in subsequent sections. GENERAL FUND Actual Amended Budget Preliminary Budget January 1 Beginning Cash 9,343,019 10,549,974 6,000,000 Property Taxes: Total Levy 22,084,571 24,634,295 Direct Deposit in Reserves (3,801,681) (1,387,450) Retained by General Fund 18,282,890 23,246,845 ADD: Annual Revenues Property Tax (General Fund Allocation) 23,626,273 18,282,890 23,246,845 Service Contract Fees 9,687,629 9,695,058 9,680,219 Other Programmed Revenue 3,129,375 3,270,900 3,037,151 Periodic Revenue 1,534 40, ,000 Transfer FROM Reserves ,802 Total Annual Revenues 36,444,812 31,288,848 36,709,018 TOTAL RESOURCES AVAILABLE 45,787,830 41,838,822 42,709,018 LESS: Annual Expenses Labor Expenses 28,774,022 28,715,902 30,497,862 Operating Expenses 6,019,392 6,621,164 6,211,156 Transfer OUT to Reserves 444, GENERAL FUND EXPENSES 35,237,856 35,337,066 36,709,018 December 31 Ending Cash 10,549,974 6,501,756 6,000,000 Target Ending Cash Balance=====> 6,000,000 6,000,000 Adjustment Required=====> 501, was the first year Reserves were funded by a direct allocation of Property Taxes. In prior years Reserves were funded by a Transfer Out. Page 16

24 ABLE Reserve Fund Actual Amended Budget Preliminary Budget Beginning Balance 2,984,892 2,966,503 5,581,598 Transfers IN 244, Annual Revenue 149,648 3,127, ,191 Annual Expense 412,479 1,107,563 1,146,566 Transfers OUT ,802 Ending Balance 2,966,503 4,986,072 4,747,421 Program 61 Apparatus Reserve Actual Amended Budget Preliminary Budget Beginning Balance 1,578,342 1,690,965 2,133,320 Transfers IN - Annual Revenue 112, , ,868 Annual Expense - 461, ,166 Transfers OUT Ending Balance 1,690,965 1,671,464 1,936,022 Program 63 Facility/Major Maintenance Reserve Actual Amended Budget Preliminary Budget Beginning Balance 538, ,428 2,757,380 Transfers IN - Annual Revenue 701 2,522,338 3,120 Annual Expense 176, ,000 - Transfers OUT 594,802 Ending Balance 362,428 2,752,766 2,165,698 Program 65 Land Reserve Actual Amended Budget Preliminary Budget Beginning Balance Transfers IN - Annual Revenue Annual Expense Transfers OUT Ending Balance Program 67 Equipment Reserve Actual Amended Budget Preliminary Budget Beginning Balance 867, , ,898 Transfers IN 244,442 Annual Revenue 36, , ,203 Annual Expense 235, , ,400 Transfers OUT Ending Balance 913, , ,701 - Page 17

25 Emergency Reserve Fund Actual Amended Budget Preliminary Budget Beginning Balance 1,988,427 1,991,580 1,994,152 Transfers IN - Annual Revenue 3,153 3,920 2,989 Annual Expense Transfers OUT Ending Balance 1,991,580 1,995,500 1,997,142 LEOFF 1 Med. Exp. Res. Fund Actual Amended Budget Preliminary Budget Beginning Balance 1,046, , ,801 Transfers IN - Annual Revenue 1, , ,370 Annual Expense - 390, ,950 Transfers OUT 453,000 Ending Balance 594, , ,221 Comp. Absences Reserve Fund Actual Amended Budget Preliminary Budget Beginning Balance - 135, ,907 Transfers IN 200,000 Annual Revenue ,750 60,255 Annual Expense 64, ,350 63,000 Transfers OUT Ending Balance 135, , ,162 Self-Insurance Fund Actual Amended Budget Preliminary Budget Beginning Balance - 850, ,135 GenFund Medical Premium Payments 3,305,103 3,223,010 3,593,297 Transfers IN 453, Annual Revenue Annual Expense 3,224,564 3,323,500 3,536,520 Transfers OUT Ending Balance 534, , ,860 Bond Fund Actual Amended Budget Preliminary Budget Beginning Balance 98,449 78,757 - Property Tax Excess Levy 2,611, ,000 - Annual Revenue 1, Annual Expense 2,632, ,000 - Transfers OUT - Ending Balance 78,747 8, Page 18

26 GENERAL FUND RESOURCES Beginning Cash Balance The proposed 2014 budget, anticipates a General Fund beginning cash balance of $6,000,000. As discussed earlier in the Financial and Budgetary Policies and Guidelines section, the Board of Commissioners adopted policy establishing a target Ending Cash Balance in accordance with the Governmental Finance Officers Association best practices of approximately 17 percent or two months of General Fund Expenses. Property Taxes District 1 Property Values After four consecutive years of real estate property values declining, the District s preliminary assessed valuation for 2014 increased by 10.06% or $1,107,500,000 to $12,317,000,000. An additional $200,454,000 in new construction was added to the value as well. The result was a total increase of 11.88% to the value of property within the District. Actual Budget Budget Previous Year's AV 13,039,725,601 11,608,738,321 11,009,170,527 Revaluation Percent % -6.39% 10.06% Revaluation Amount (1,589,814,879) (741,498,221) 1,107,522,555 New Construction Value 158,827, ,930, ,454,533 TOTAL ASSESSED VALUE 11,608,738,321 11,009,170,527 12,317,147,615 Regular Levy 17,719,292 16,513,756 18,475,721 EMS Levy 5,906,981 5,504,585 6,158,574 Total Property Tax Levy 23,626,273 22,018,341 24,634,295 Allocated to Reserves 444,442 3,801,681 1,387,450 Allocated to General Fund 23,181,831 18,216,660 23,246,845 Page 19

27 As illustrated in the table below, property values declined for 4 years in a row before showing an increase in From , the combined values of all properties within Fire District 1 had collectively declined by nearly 33%. Because the District s Fire levy rate is capped at $1.50 per $1,000 of property value and the EMS levy rate is capped at $.50 per $1,000 of property value, the revenue collected by the District to Fund Operations also declined by 33%. Year Assessed Value % Change Total Tax Rate Total Property Taxes Assessed $ Change ,591,184, % ,182,368 2,434, ,239,783, % ,479,566 (2,702,802) ,039,725, % ,079,451 (2,400,115) ,608,738, % ,217,477 (2,861,975) ,009,170, % ,018,341 (1,199,136) ,317,147, % ,634,295 2,615,954 Property Tax Levy Rates Remain the Same District taxpayers have had no increase in their property tax rate paid for fire protection and lifesaving emergency medical responses. Examine the following table to understand that taxes were actually reduced to property owners in District 1 from due to the fixed tax rate applied to reduced property values. With the increase in values for 2014, District residents will see a slight increase in the property taxes paid to the District. Year Individual Home Assessed Value % Change Fire Property Tax Rate Fire Property Tax EMS Property Tax Rate EMS Property Tax Total District 1 Property Taxes , , % , % , % , % , % Please be aware that these are the taxes paid to the District for Fire and EMS Services only. In prior years the District also levied a property tax for to pay off bonds which averaged about $.22 per $1,000 of property value. Other property taxes levied by other jurisdictions such as cities, County, schools, and the other jurisdiction levies are determined by separate rates. Transport Fees When victims of accidents, fires, or life-threatening medical conditions require transportation to hospitals and emergency rooms, the District receives a payment from Medicare or from the patient or the patient s medical insurance provider. These fees provide additional funding to assure the highest level of medical care for our citizens. The District increased the Transport fees in late 2011, Page 20

28 however in 2013 fewer citizens required transport therefore a conservative estimate has been included in the Budget for Actual Amended Budget Preliminary Budget Transport Receipts 2,811,043 3,011,800 2,764,832 Service Contracts District 1 has contracts with the cities of Mountlake Terrace, Brier, and Edmonds to provide Fire and EMS Services. The contract amounts are to be adjusted annually based upon increases to the cost of labor. As the District is currently in negotiations with its bargaining unit, the contract amounts included for 2014 are estimated. The town of Woodway did not renew its contract with the Fire District for Actual Amended Budget Preliminary Budget City of Brier 822, , ,632 City of Edmonds 6,222,779 6,203,322 6,537,652 City of Mountlake Terrace 2,168,223 2,155,773 2,277,935 Town of Woodway 473, , ,687,629 9,695,058 9,680,219 Other Miscellaneous Revenue The District also receives revenue from other miscellaneous sources including Charges for Services, Donations, Investment Interest and Grants. In 2013 the District s Prevention Division received Assistance to Firefighters Grant for the installation of smoke detectors. In 2014 the District has received a grant from Verdant Health Commission for a Community Paramedic Program. Actual Amended Budget Preliminary Budget Esperance Station Contract 65,953 65,000 65,953 Motor Vehicle Collision Fees 0 50,000 50,000 Other Charges for Service 129,731 51, ,000 Donations 1, Other Taxes 5,459 3,000 3,060 Miscellaneous Revenue 103,265 80,000 40,800 Investment Interest 12,564 10,000 10,200 Grant 1,534 40, , , , ,319 Page 21

29 General Fund Expenses The General Fund encompasses all of the operating programs of Fire District 1. By operating programs we mean the governance, the administration, and the operations that support the mission and service delivery of the District. Detailed information on the General Fund Programs can be found on the following pages. Below you will find summary information on the General Fund expenses. GENERAL FUND PROGRAM EXPENSES Actual Amended Budget Preliminary Budget 01 Elected Officials 199, , , Office of the Fire Chief 1,042,472 1,048,975 1,056, Human Resources 256, , , New Hires - 24, Public Information 209, , , Non-Departmental Expenses 3,404,041 2,645,000 2,461, Finance 431, , , GIS Mapping 101,968 69,303 79, Communications Technology 517, , , Fire Operations 25,573,090 25,596,462 26,978, Volunteers 64,056 83,038 90, Safety 162, , , Prevention & Public Education 460, , , EMS Operations 934, ,070 1,066, Technical Rescue 25,561 63,039 55, HazMat 11,827 53,891 61, Physical Fitness and Wellness 6,120 24,460 7, Training 283, , , Fleet Maintenance 820,248 1,020, , Facilities Maintenance 731, , ,347 TOTAL GENERAL FUND EXPENSES 35,237,856 35,337,066 36,709,018 Page 22

30 GENERAL FUND OBJECT CODE EXPENSES Actual Amended Budget Preliminary Budget 11 Wages 20,291,165 20,077,922 21,157, Overtime 1,721,040 1,633,320 1,580, Benefits 6,761,817 7,004,661 7,760,454 TOTAL Labor 28,774,022 28,715,902 30,497, Office Supplies 19, , , Fuel 218, , , Operating Supplies 462, Small Tool & Equipment 212, , , Professional Services 2,542,466 2,446,612 2,251, Communications 863, , , Travel/Training 88, , , Advertising Rentals & Leases 147 5,000 5, Insurance 213, , , Utilities 308, , , Repairs & Maintenance 1,001,218 1,216,089 1,180, Miscellaneous 88, ,040 88, Transfer OUT 444, TOTAL M&O 6,463,834 6,621,164 6,211,156 TOTAL GENERAL FUND EXPENSES 35,237,856 35,337,066 36,709,018 GENERAL FUND POSTIONS BY PROGRAM Budget Amended Budget Preliminary Budget Office of the Board of Commissioners Office of the Fire Chief Human Resources Public Information Officer Finance GIS Station Operations Prevention Emergency Medical Services Training Facility Maintenance Page 23

31 01 BOARD OF FIRE COMMISSIONERS PROGRAM DESCRIPTION The primary function of the Board is to oversee the strategic operations of the district, to generate, review, and approve policies which provide clear guidance to the administrative and managerial staff in conducting their respective operational duties, and to review and acknowledge the expenditure of funds for goods and services received by the District. The Board holds open hearings on matters of importance to the general public. These matters include the setting of property tax levies, the acquisition of fire and EMS facilities, apparatus, and equipment required to deliver a level of service determined by the Board. Pursuant to RCW and WSR each of the five commissioners may be compensated at $114 per day with an annual compensation limit of $10,944. RCW also provides that every 5 years the dollar threshold will be adjusted for inflation. Budget Changes or Highlights for 2014 The Commission budget as proposed has no significant changes from the 2013 Budget. Page 24

32 01 Board of Commissioners Actual Budget Preliminary Budget Budgeted Positions 1 Elected Official Board's Executive Asst Labor Expenses 11 Wages 141, , , Overtime Benefits 32,516 35,664 39,360 Total Labor Expenses 174, , ,620 Operating Expenses 31 Office Supplies Fuel Operating Supplies Small Tool & Equipment 4, Professional Services Communications Travel/Training 9,391 15,000 15, Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous 11,002 9,500 9, Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 25,444 24,800 24,990 Total Program Expenses 199, , ,610 Page 25

33 03 OFFICE OF THE FIRE CHIEF PROGRAM DESCRIPTION The primary function of the Office of the Fire Chief is to oversee the specific operations of the District, to assure compliance with District policies, to delegate operating authority and responsibility to the Deputy chiefs to assist staff in conducting their respective duties, and to initiate the expenditure of funds for the receipt of goods and services received by the District. The Administration manages the conduct and affairs of the District on a daily and detailed basis to assure the highest level of service consistent with the resources approved by the Fire Commissioners. The Administration program employs the Fire Chief, Assistant Chiefs, as well as, uniformed and non-uniformed support staff. Budget Changes or Highlights for 2014 The Office of the Fire Chief Professional Services budget was decreased as $45,000 had been included in the 2013 budget as a one-time cost for the Citygate Study update. Page 26

34 03 Office of the Fire Chief Actual Budget Preliminary Budget Budgeted Positions 5 Fire Chief Assistant Chief Chief's Executive Asst Budget Director MSO-Days DC Training 55 DC Facilities & Apparatus 60 DC Fire Marshal 70 DC Administrative Services 450 Fire Inspector Labor Expenses 11 Wages 787, , , Overtime 6,137 3,717 3, Benefits 204, , ,141 Total Labor Expenses 998, ,975 1,014,704 Operating Expenses 31 Office Supplies Fuel Operating Supplies Small Tool & Equipment Professional Services 19,942 59,000 15, Communications Travel/Training 17,022 20,000 20, Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous 5,287 6,000 6, Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 43,916 85,000 42,000 Total Program Expenses 1,042,472 1,048,975 1,056,704 Page 27

35 04 HUMAN RESOURCES PROGRAM DESCRIPTION The Human Resources Program oversees all human resource activities. Activities include labor negotiations, compensation and benefits, health care contract management and administration, and staffing management which includes advertising, testing, interviewing, and orientation for new administrative employees. Budget Changes or Highlights for 2014 The Human Resources Professional Services line item decreased primarily due to legal fees associated with labor negotiations. Additionally in 2013 the Human Resources budget was increased for one-time costs associated with promotional testing processes expected to occur in late Page 28

36 04 Human Resources Actual Budget Preliminary Budget Budgeted Positions 175 HR Manager HR Analyst Project Employee Payroll Manager 70 DC Administrative Services Labor Expenses 11 Wages 137, , , Overtime - 3,717 3, Benefits 41,411 43,762 59,754 Total Labor Expenses 178, , ,828 Operating Expenses 0 31 Office Supplies - 4, Fuel Operating Supplies Small Tool & Equipment Professional Services 73, , , Communications Travel/Training 1,821 4,000 4, Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous 2,716 6,355 8, Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 78, , ,475 Total Program Expenses 256, , ,303 Page 29

37 05 NEW HIRES PROGRAM DESCRIPTION The New Hires program captures the cost of recruiting, advertising, interviewing, screening, hiring, and initial Fire Academy training of all new career suppression personnel additions and those who replace retirees. This program also captures the cost of new member s initial uniforms and required protective equipment and the salaries and benefits for new or additional suppression members. Budget Changes or Highlights for 2014 The District anticipates hiring 5 firefighters in late Should this process be delayed, an amendment may need to be processed in 2014 complete this hiring process. Page 30

38 05 New Hires Budgeted Positions 440 Firefighter-Shift Actual Budget Preliminary Budget Labor Expenses 11 Wages Overtime Benefits Total Labor Expenses Operating Expenses 31 Office Supplies Fuel Operating Supplies Small Tool & Equipment Professional Services - 23, Communications - 1, Travel/Training Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses - 24,525 - Total Program Expenses - 24,525 - Page 31

39 09 PUBLIC INFORMATION PROGRAM DESCRIPTION The Public Information program serves as the official communications channel for the District in promulgating technical, financial, and operational data to the media and the general public. The channels include direct interviews with the print and visual media, newsletters, informational flyers, brochures, management of the website, press releases, coordinating District involvement in community events, and on-scene media relations. Budget Changes or Highlights for 2014 In 2012 the Public Information budget was increased by the Board of Commissioners to include one additional mailing to District 1 customers. The 2014 budget maintains the same level of funding. Page 32

40 09 Public Information Actual Budget Preliminary Budget Budgeted Positions 140 PIO Labor Expenses 11 Wages 97,995 99, , Overtime 1,501 4,460 7, Benefits 33,960 37,361 41,746 Total Labor Expenses 133, , ,230 Operating Expenses 0 31 Office Supplies , Fuel Operating Supplies Small Tool & Equipment Professional Services 3,000 3, Communications 25,324 63,500 52, Travel/Training 40-1, Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous 47,056 32,900 43, Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 76, , ,450 Total Program Expenses 209, , ,680 Page 33

41 15 NON-DEPARTMENTAL EXPENSES PROGRAM DESCRIPTION The Non-Departmental Expenses program is designed to incorporate all District expenses not otherwise assigned to a specific operations program. This program captures major organizational expenses that arise from Commissioner Policy directives and which are not under the discretionary control of the Fire Chief and management staff, such as on-going fire service contracts, Interlocal agreements, interagency programs, and debt service. Budget Changes or Highlights for 2014 The Non-Departmental budget was reduced primarily due to election costs of $150,000 that were included in the 2013 miscellaneous line item. Page 34

42 15 Non-Departmental Expenses Budgeted Positions Actual Budget Preliminary Budget Labor Expenses 11 Wages 6, Overtime Benefits Total Labor Expenses 6, Operating Expenses 31 Office Supplies 4,116 10,000 8, Fuel Operating Supplies Small Tool & Equipment Professional Services 2,046,612 1,649,000 1,601, Communications 677, , , Travel/Training Advertising Rentals & Leases Insurance 213, , , Utilities Repairs & Maintenance Miscellaneous 11, ,000 13, Transfer OUT 444, Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 3,398,041 2,645,000 2,461,237 Total Program Expenses 3,404,041 2,645,000 2,461,237 Page 35

43 18 FINANCE PROGRAM DESCRIPTION The Finance program employs non-uniformed professional staff develop annual budgets with forecasted revenue and expenses, to account for the timely payment of expenses incurred by the operating and reserve components of the District, to track, invest, and deposit cash as required to meet all payroll and operating expenditure obligations incurred by the District. The Program prepares monthly and quarterly financial performance reports showing the status of revenue and expenses measured against the adopted budget. At year end, the Program also prepares and publishes an annual report open for public inspection and submitted to the State Auditor's Office for examination. Budget Changes or Highlights for 2014 There were no significant changes to the Finance budget. Page 36

44 18 Finance Actual Budget Preliminary Budget Budgeted Positions 125 Finance Director Finance Specialist Purchasing Manager Payroll Manager Administrative Assistant 130 Budget Director Labor Expenses 11 Wages 309, , , Overtime - 2, Benefits 116, , ,530 Total Labor Expenses 425, , ,136 Operating Expenses 31 Office Supplies , Fuel Operating Supplies Small Tool & Equipment Professional Services Communications Travel/Training 1,738 3,000 3, Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous 3,241 1,500 1, Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 5,896 6,000 6,020 Total Program Expenses 431, , ,156 Page 37

45 21 GIS MAPPING PROGRAM DESCRIPTION The GIS Mapping program provides digital mapping services for the District's needs and is available for mapping services work to outside agencies on a reimbursement basis. Budget Changes or Highlights for 2014 The GIS budget increased to include travel to the ESRI Annual conference and funds for new grid books. Page 38

46 21 GIS Mapping Actual Budget Preliminary Budget Budgeted Positions 445 Firefighter-Days Contract Employee (GIS) Labor Expenses 11 Wages 92,356 49,920 49, Overtime 1, Benefits 8,499 9,383 9,826 Total Labor Expenses 101,968 59,303 59,746 Operating Expenses 31 Office Supplies - 10,000 14, Fuel Operating Supplies Small Tool & Equipment Professional Services Communications Travel/Training - - 5, Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses - 10,000 19,500 Total Program Expenses 101,968 69,303 79,246 Page 39

47 32 COMMUNICATIONS & TECHNOLOGY PROGRAM DESCRIPTION The Communications and Technology program provides for the estimated cost of placing an array of electronic and office equipment into service at the administrative and operational levels of the District. Budget Changes or Highlights for 2014 The Communications budget was decreased primarily due to a one-time amendment in 2013 to the Professional Services line item for website development. Page 40

48 32 Communications & Technology Actual Budget Preliminary Budget Budgeted Positions Labor Expenses 11 Wages Overtime Benefits Total Labor Expenses Operating Expenses 31 Office Supplies - 51,355 30, Fuel Operating Supplies 37, Small Tool & Equipment 36,057 30,000 36, Professional Services 232, , , Communications 160, , , Travel/Training Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance 50,037 64,937 44, Miscellaneous 1, Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 517, , ,500 Total Program Expenses 517, , ,500 Page 41

49 35 STATION OPERATIONS PROGRAM DESCRIPTION The Station Operations program covers the cost of equipping, staffing, and operating twelve fire and EMS stations. The goal is to arrive at an emergency incident within 8 minutes, 90% of the time, from the 911 call to arrival. It is also our goal to provide an effective force within 12 minutes 90% of the time. Budget Changes or Highlights for 2014 As previously noted in the Chief s Budget Letter, the Operations Labor budget as proposed had been increased to allow for the hiring of staff. At this time it is anticipated that the District will hire 5 additional firefighters in either late 2013 or early After deliberating the 2014 Budget as proposed by the Chief, the Board of Commissioners authorized the hiring of 4 more firefighters to staff a peak activity unit at Station 21. Page 42

50 35 Station Operations Actual Budget Preliminary Budget Budgeted Positions 400 Battalion Chief-Shift MSO-Shift Captain-Shift FF/Paramedic-Shift Firefighter-Shift Firefighter-Days Battalion Chief-Days 425 Captain-Days 405 Battalion Chief-Days Labor Expenses 11 Wages 17,919,190 17,905,497 18,779, Overtime 1,468,908 1,266,421 1,154, Benefits 6,091,251 6,324,053 6,930,977 Total Labor Expenses 25,479,349 25,495,970 26,865,449 Operating Expenses 31 Office Supplies 30 32,664 32, Fuel Operating Supplies 32, Small Tool & Equipment 29,625 44,488 46, Professional Services Communications Travel/Training 287 2,500 10, Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance 30,776 20,840 23, Miscellaneous Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 93, , ,002 Total Program Expenses 25,573,090 25,596,462 26,978,451 Page 43

51 36 VOLUNTEERS PROGRAM DESCRIPTION The Volunteer program identifies the cost of maintaining a volunteer staff of trained personnel who assist and support the suppression crews during tactical operations. Budget Changes or Highlights for 2014 There was no significant change to the Volunteers budget. Page 44

52 36 Volunteers Actual Budget Preliminary Budget Budgeted Positions 340 Volunteer Labor Expenses 11 Wages 46,300 50,000 50, Overtime 4, Benefits 132 2,688 9,723 Total Labor Expenses 50,684 52,688 59,723 Operating Expenses 31 Office Supplies - 6,800 6, Fuel Operating Supplies 7, Small Tool & Equipment Professional Services 1,778 10,300 10, Communications Travel/Training 2,077 13,250 13, Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous 1, Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 13,372 30,350 30,350 Total Program Expenses 64,056 83,038 90,073 Page 45

53 37 SAFETY PROGRAM DESCRIPTION The Safety and Health program is responsible for managing and enforcing the rules, regulations, and policies relating to the safe operation of the Fire Department. The Safety Officer responds to emergency activities, manages the personal protection equipment (PPE) program, the SCBA program, the Wellness Program and the Exposure Control Program among several others. The Safety Officer coordinates with Training on new and existing programs designed to ensure the continued safety of all District personnel. Budget Changes or Highlights for 2014 In 2012 the Safety Wage and Benefit budget was eliminated and this position moved to Operations. The 2013 Budget was amended to include additional funding for hearing evaluations, return to work physicals, PPE maintenance. The 2014 budget maintains this level of funding. Page 46

54 37 Safety Budgeted Positions 405 Battalion Chief-Days Actual Budget Preliminary Budget Labor Expenses 11 Wages Overtime 2, Benefits Total Labor Expenses 2, Operating Expenses 31 Office Supplies - 129, , Fuel Operating Supplies Small Tool & Equipment 112, Professional Services 35,381 30,825 11, Communications Travel/Training 1, Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance 9,930 34,908 43, Miscellaneous Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 160, , ,045 Total Program Expenses 162, , ,045 Page 47

55 38 PREVENTION & EDUCATION PROGRAM DESCRIPTION The Prevention & Education program provides fire- and life-safety education services and fire awareness training throughout the district and cities. Additionally, fire marshal services are provided to contract cities, that includes fire origin & cause investigations, construction plans reviews, building inspections, and code and ordinance development. Budget Changes or Highlights for 2014 There was no significant change to the Prevention and Education budget. After deliberating the 2014 Budget as proposed by the Chief, the Board of Commissioners authorized the hiring of one additional Public Educator. Page 48

56 38 Prevention & Education Actual Budget Preliminary Budget Budgeted Positions 60 DC Fire Marshal Fire Inspector Public Education Spec Public Education Spec Labor Expenses 11 Wages 332, , , Overtime 18,375 18,585 31, Benefits 92, , ,083 Total Labor Expenses 443, , ,628 Operating Expenses 31 Office Supplies - 26,310 10, Fuel Operating Supplies 11, Small Tool & Equipment Professional Services Communications Travel/Training 4,808 7,500 7, Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 17,142 34,810 19,550 Total Program Expenses 460, , ,178 Page 49

57 42 EMERGENCY MEDICAL SERVICES PROGRAM DESCRIPTION The Emergency Medical Services (EMS) program provides for the oversight, management, and quality control of EMS service delivery, and funds equipment maintenance and disposable supplies used when responding to EMS incidents. Budget Changes or Highlights for 2014 The EMS budget increased primarily due to the addition of a Community Paramedic Position to be funded for two years by Verdant Health Commission of Snohomish County. Page 50

58 42 EMS Actual Budget Preliminary Budget Budgeted Positions 415 MSO-Days Community Paramedic Labor Expenses 11 Wages 239, , , Overtime 129, , , Benefits 79,278 40,404 78,346 Total Labor Expenses 448, , ,732 Operating Expenses 31 Office Supplies - 342, , Fuel Operating Supplies 300, Small Tool & Equipment 12,370 15,000 3, Professional Services 119, , , Communications Travel/Training 7,650 40,000 44, Advertising Rentals & Leases Insurance Utilities 1,976 2,000 2, Repairs & Maintenance 40,122 57,500 57, Miscellaneous 3,485 3,000 3, Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 485, , ,625 Total Program Expenses 934, ,070 1,066,357 Page 51

59 43 TECHNICAL RESCUE PROGRAM DESCRIPTION The Technical Rescue Program covers the cost of training a cadre of highly specialized personnel in rescue operations including high and low angle rescue, liquid and frozen water surfaces, confined space and urban search and rescue. Highly specialized equipment is utilized in the conduct of these rescue operations. In November 2012 the District entered into a Special Operations Full Participating Agency Interlocal agreement. Assessments a will be split between Technical Rescue and Hazardous Materials-Program 44. Budget Changes or Highlights for 2014 With the exception of maintenance costs for Marine 16 moving from Technical Rescue to the Apparatus Maintenance Budget, there were no significant changes to the Technical Rescue budget. Page 52

60 43 Technical Rescue Budgeted Positions Actual Budget Preliminary Budget Labor Expenses 11 Wages Overtime 14,537 40,888 38, Benefits Total Labor Expenses 14,537 40,888 38,750 Operating Expenses 31 Office Supplies 10,537 10,173 16, Fuel Operating Supplies Small Tool & Equipment 287 5, Professional Services Communications Travel/Training Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance 200 6, Miscellaneous Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 11,024 22,151 16,654 Total Program Expenses 25,561 63,039 55,404 Page 53

61 44 HAZARDOUS MATERIALS PROGRAM DESCRIPTION The HazMat program identifies the cost of training and developing a cadre of highly specialized personnel who may safely confront and control a field operation involving hazardous materials utilizing expert techniques and dedicated equipment. In November 2012 the District entered into a Special Operations Full Participating Agency Interlocal agreement. Assessments a will be split between Hazardous Materials and Technical Rescue-Program 43. Budget Changes or Highlights for 2014 There was no significant change to the HazMat budget. Page 54

62 44 HazMat Budgeted Positions Actual Budget Preliminary Budget Labor Expenses 11 Wages Overtime 11,363 37,171 38, Benefits Total Labor Expenses 11,363 37,171 38,750 Operating Expenses 31 Office Supplies - 4,490 5, Fuel Operating Supplies Small Tool & Equipment - 3,990 6, Professional Services Communications - 1, Travel/Training - 4,500 8, Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance - 2,500 1, Miscellaneous Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses ,720 22,440 Total Program Expenses 11,827 53,891 61,190 Page 55

63 45 PHYSICAL FITNESS & WELLNESS PROGRAM DESCRIPTION The Physical Fitness and Wellness program accounts for the cost of providing a variety of physical strength and stamina training to operational staff under the tutelage of trained instructors. Medical physicals are also provided on an annual basis. A tobacco cessation class is available to any staff seeking assistance and support in this endeavor. Budget Changes or Highlights for 2014 The Physical Fitness and Wellness budget was decreased to reflect historical spending. Page 56

64 45 Physical Fitness & Wellness Actual Budget Preliminary Budget Budgeted Positions Labor Expenses 11 Wages Overtime 350 4,460 3, Benefits Total Labor Expenses 350 4,460 3,875 Operating Expenses 31 Office Supplies Fuel Operating Supplies Small Tool & Equipment 880 1,500 1, Professional Services 2,353 16,200 1, Communications Travel/Training Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance 2,219 1, Miscellaneous Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 5,771 20,000 3,468 Total Program Expenses 6,120 24,460 7,343 Page 57

65 46 TRAINING PROGRAM DESCRIPTION The Training Budget supports the overall goals of organizational compliance with Federal, State, and local laws, rules, regulations, and codes governing emergency response and employee preparedness. The budget also supports the organizational career development goals that are defined by industry best standards and practices and include both formal education and competency based evaluations. Budget Changes or Highlights for 2014 The Training Division continues to look for innovative ways to provide the necessary training. Financial efficiencies continue to be achieved by participating in the Snohomish County Training Officers annual on-line training program. The 2014 Budget is slightly increased over 2013 to provide for additional Overtime for training and due to the number of employees taking advantage of the District s Tuition Reimbursement program. Efforts to enhance regional training partnerships with Everett Fire should come to fruition in 2014 and will support the on-going training partnerships already established with Fire District #7 and Mukilteo Fire. Page 58

66 46 Training Actual Budget Preliminary Budget Budgeted Positions 50 DC Training Captain-Days 305 Administrative Assistant Labor Expenses 11 Wages 132, , , Overtime 62,642 74, , Benefits 34,391 28,781 33,007 Total Labor Expenses 229, , ,344 Operating Expenses 0 31 Office Supplies 341 8,400 5, Fuel Operating Supplies 8, Small Tool & Equipment 2,562 8,000 5, Professional Services Communications Travel/Training 41,772 83, , Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous 1, Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 54, , ,260 Total Program Expenses 283, , ,604 Page 59

67 60 APPARATUS MAINTENANCE PROGRAM DESCRIPTION This program budgets for the cost of vehicle maintenance and operations. The major work is provided under separate contract by a central vehicle repair facility in Monroe at District 3. Minor and other repairs are attended to locally or at Station 21. Budget Changes or Highlights for 2014 The Apparatus Maintenance budget was amended in 2013 and increased due to some extraordinary repairs required to District Apparatus. The 2014 Budget was reduced to approximately the 2013 Original budget amount and is in line with historical spending. Page 60

68 60 Apparatus Maintenance Budgeted Positions 295 Apparatus Tech Actual Budget Preliminary Budget Labor Expenses 11 Wages Overtime Benefits Total Labor Expenses Operating Expenses 31 Office Supplies 3,970 25,979 15, Fuel 218, , , Operating Supplies 11, Small Tool & Equipment 3, Professional Services Communications Travel/Training - 3,500 3, Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance 582, , , Miscellaneous 19 1,000 1, Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 819,926 1,020, ,590 Total Program Expenses 820,248 1,020, ,590 Page 61

69 62 FACILITIES MAINTENANCE PROGRAM DESCRIPTION This program budgets for the cost of repairing and maintaining all of the buildings owned by the District. Budget Changes or Highlights for 2014 Due to the financial constraints the District has been operating under since 2011, some maintenance on District facilities was deferred. The District can no longer delay some of these repairs; therefore the Facilities Maintenance budget has been increased. Page 62

70 62 Facilities Maintenance Actual Budget Preliminary Budget Budgeted Positions 290 Maintenance Tech DC Facilities & Apparatus Labor Expenses 11 Wages 48,324 49,008 56, Overtime - 5,947 2, Benefits 26,413 26,702 27,961 Total Labor Expenses 74,737 81,657 86,347 Operating Expenses 31 Office Supplies - 80, , Fuel Operating Supplies 49, Small Tool & Equipment 8,689 30,000 30, Professional Services 6,411 50,000 35, Communications Travel/Training 16 1,000 1, Advertising Rentals & Leases 147 5,000 5, Insurance Utilities 306, , , Repairs & Maintenance 284, , , Miscellaneous Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 656, , ,000 Total Program Expenses 731, , ,347 Page 63

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72 RESERVE FUNDS AND ACCOUNTS Page 65

73 00 EMERGENCY RESERVE POLICY PROGRAM DESCRIPTION Emergency Reserve Created: It is in the best interest of The District and the communities it serves to establish a long-range financial plan; therefore the Commissioners shall create a separate Emergency Reserve Account and contribute to this account from time to time until a target of not less than $2 Million dollars is reached. Source of Funds: Contributions by Amount or Percentage: Each year, as part of the annual budget process, the Commissioners shall set, as a fixed dollar amount or a percentage of annual property taxes, the amount of the annual contribution. Lump Sum Contribution: Periodically a sum of money may be identified as a one-time, lump-sum contribution. The amount may be specified during the regular budget process or upon notice that the sum is available. Interest: Interest earned from the account s invested balance shall accrue to the account. Usage of Emergency Reserve: The account may be drawn upon for situations declared by the Commissioners to be of an emergency basis. Typical Usage includes: To supplement a temporary shortage of revenues. To supplement a long-term shortage of revenues. To extinguish a liability. To pay an emergency expenditure. To accommodate an unplanned expense determined to provide exceptional value to the District. Budget Changes or Highlights for 2014 There are no expenditures anticipated in 2014 from this account. Page 66

74 64 Emergency Reserve Actual Budget Preliminary Budget January 1, Beginning Cash 1,988,427 1,991,580 1,994, Property Tax X Grants 342 Charges for Services 361 Interest Earnings 3,153 3,920 2, Sale of Assets 397 Transfer In 391 Bond Proceeds Total Annual Revenue 3,153 3,920 2,989 Labor Expenses 11 Wages 12 Overtime 20 Benefits Total Labor Expenses Operating Expenses 31 Office Supplies Fuel Operating Supplies Small Tool & Equipment Professional Services Communications Travel/Training Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest - - Total Operating Expenses Total Program Expenses December 31, Ending Cash 1,991,580 1,995,500 1,997,142 Page 67

75 61 APPARATUS RESERVE ACCOUNT POLICY PROGRAM DESCRIPTION Apparatus Replacement Reserve Created: The District desires to continue with its practice of setting aside a portion of its annual revenues for the future acquisition of apparatus; therefore the Commissioners shall create a separate account, and contribute to this account amounts necessary to maintain an average target ending cash balance of $500,000. As replacements are currently structured the Apparatus Replacement Reserve s target ending cash balance will be $216,000 in Source of Funds: Contributions by Amount or Percentage: Each year, as part of the annual budget process, the Commissioners shall set, as a fixed dollar amount or a percentage of annual property taxes, the amount of the annual contribution. Lump Sum Contribution: Periodically a sum of money may be identified as a one-time, lump-sum contribution. The amount may be specified during the regular budget process or upon notice that the sum is available. Interest: Interest earned from the account s invested balance shall accrue to the account. Usage of Apparatus Replacement Reserve: The account may be drawn upon for the acquisition of, either a new addition to the fleet or as a replacement of an existing vehicle(s) which have been declared to be in the need of replacement. Typical acquisition criteria includes: A vehicle has exhausted its life-cycle. A vehicle that cannot be maintained or repaired at a cost commensurate with its remaininglife value. A vehicle becomes available which can be shown to materially enhance the service mission of the District. Budget Changes or Highlights for 2014 In 2013 the District anticipated replacing three Aid Units. The delivery date for these units has been moved to 2014; therefore the funding has now been included in the 2014 Budget. Additionally the District plans on replacing one Command unit in Page 68

76 61 Apparatus Reserve January 1, Beginning Cash Actual Budget Preliminary Budget 1,578,342 1,690,965 2,133, Property Tax 439, ,000 33X Grants Charges for Services 361 Interest Earnings 2,623 2,500 2, Sale of Assets 110, Transfer In 391 Bond Proceeds - - Total Annual Revenue 112, , ,868 Labor Expenses 11 Wages 12 Overtime 20 Benefits Total Labor Expenses Operating Expenses 31 Office Supplies Fuel Operating Supplies Small Tool & Equipment Professional Services Communications Travel/Training Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous Transfer OUT Capital Outlay - 461, , Debt Svc: Principal Debt Svc: Interest Total Operating Expenses - 461, ,166 Total Program Expenses - 461, ,166 December 31, Ending Cash 1,690,965 1,671,464 1,936,022 Page 69

77 63 FACILITY/MAJOR MAINTENANCE RESERVE ACCOUNT POLICY PROGRAM DESCRIPTION Facility/Major Maintenance Reserve Created: The District desires to continue with its practice of setting aside a portion of its annual revenues for the future acquisition new facilities, facility improvements, remodeling, or major repairs; therefore the Commissioners shall create a separate account, and contribute to this account amounts necessary meet the annual and future Facility/Major Maintenance needs. Preliminary estimates place this amount at approximately $10 Million (see project list below). Source of Funds: Contributions by Amount or Percentage: Each year, as part of the annual budget process, the Commissioners shall set, as a fixed dollar amount or a percentage of annual property taxes, the amount of the annual contribution. Lump Sum Contribution: Periodically a sum of money may be identified as a one-time, lump-sum contribution. The amount may be specified during the regular budget process or upon notice that the sum is available. Interest: Interest earned from the account s invested balance shall accrue to the account. Usage of Facility/Major Maintenance Reserve Funds: The account may be drawn upon as full or partial payment of a capital investment in any District building, facility or new facility. The use of funds in the Facility/Major Maintenance Reserve is for capital investments, and not a source for on-going maintenance needs. Typical capital criteria includes: Major improvements, remodel, or repair. Purchase of a new facility. New construction. Budget Changes or Highlights for 2014 The District has compiled the following list of projects and is in the process of prioritizing. At this time capital expenditures are not anticipated for 2014, however a Transfer to the General Fund in the amount of $595,000 has been authorized. HQ (1) Boiler HQ (4) Heat Pumps HQ Interior Painting HQ Security Locks HQ Lobby Flooring HQ North Parking Lot HQ Electronic Gates HQ Lot LED Lights Sta. 11 (3) Heat Pumps Sta. 11 Roof re-coat Sta. 11 Skylights re-glazed or replaced Sta. 11 (3) Bay Doors Sta. 13 (2) Heat Pumps Sta. 13 (1) Bay Door Sta. 22 (1) Boiler Sta. 22 Underground Storage Tank (UST) Removal and site prep Sta. 23 (1) Boiler Sta. 21 Electronic Gates Sta. 10 Electronic Gates Sta. 10, 12, 18 Miscellaneous Sta. 22 Construction of new station Sta. 23 Construction of new station Sta. 21 Fleet Shop Construction 30, , , , , , , , , , , , , , , , , , , , ,000, ,000, ,000, ,990,000 Page 70

78 63 Facility/Major Maintenance Reserve Actual Budget Preliminary Budget January 1, Beginning Cash 538, ,428 2,757, Property Tax 2,520,838-33X Grants Charges for Services 361 Interest Earnings 701 1,500 3, Sale of Assets Transfer In 391 Bond Proceeds - - Total Annual Revenue 701 2,522,338 3,120 Labor Expenses 11 Wages 12 Overtime 20 Benefits Total Labor Expenses Operating Expenses 31 Office Supplies Fuel Operating Supplies Small Tool & Equipment Professional Services - 132, Communications Travel/Training Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous Transfer OUT , Capital Outlay 176, Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 176, , ,802 Total Program Expenses 176, , ,802 December 31, Ending Cash 362,428 2,752,766 2,165,698 Page 71

79 65 LAND ACQUISITION RESERVE ACCOUNT POLICY PROGRAM DESCRIPTION Land Reserve Created: The District desires to continue with its practice of setting aside a portion of its annual revenues for the future acquisition of land; therefore the Commissioners shall create a separate account, and contribute to this account amounts necessary to meet the Districts future need for land. The District estimates it will cost approximately $1.5 Million to purchase land for a station. Source of Funds: Contributions by Amount or Percentage: Each year, as part of the annual budget process, the Commissioners shall set, as a fixed dollar amount or a percentage of annual property taxes, the amount of the annual contribution. Lump Sum Contribution: Periodically a sum of money may be identified as a one-time, lump-sum contribution. The amount may be specified during the regular budget process or upon notice that the sum is available. Interest: Interest earned from the account s invested balance shall accrue to the account. Usage of Land Reserve Funds: The account may be drawn upon for the acquisition of land. Budget Changes or Highlights for 2014 There are no expenditures anticipated in 2014 from this account. Page 72

80 65 Land Reserve Actual Budget Preliminary Budget January 1, Beginning Cash Property Tax X Grants Charges for Services 361 Interest Earnings Sale of Assets Transfer In 391 Bond Proceeds - - Total Annual Revenue Labor Expenses 11 Wages 12 Overtime 20 Benefits Total Labor Expenses Operating Expenses 31 Office Supplies Fuel Operating Supplies Small Tool & Equipment Professional Services Communications Travel/Training Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest - - Total Operating Expenses Total Program Expenses December 31, Ending Cash Page 73

81 67 EQUIPMENT REPLACEMENT RESERVE ACCOUNT POLICY PROGRAM DESCRIPTION Equipment Reserve Created: The District desires to continue with its practice of setting aside a portion of its annual revenues for the future acquisition of new or replacement equipment; therefore, the Commissioners shall create a separate account, and contribute to this account amounts necessary to maintain an average target ending cash balance of $500,000. As replacements are currently structured the Equipment Replacement Reserve s target ending cash balance will be $610,000 in Source of Funds: Contributions by Amount or Percentage: Each year, as part of the annual budget process, the Commissioners shall set, as a fixed dollar amount or a percentage of annual property taxes, the amount of the annual contribution. Lump Sum Contribution: Periodically a sum of money may be identified as a one-time, lump-sum contribution. The amount may be specified during the regular budget process or upon notice that the sum is available. Interest: Interest earned from the account s invested balance shall accrue to the account. Usage of Equipment Reserve Funds: The fund may be drawn upon for the acquisition of either a new piece of equipment or for replacement of an existing piece equipment. Typical acquisition criteria includes: The equipment has exhausted its life-cycle. The equipment cannot be maintained or repaired at a cost commensurate with its remaining-life value. New equipment becomes available which can be shown to materially enhance the service mission of the District. Budget Changes or Highlights for 2014 The 2013 budget included funds to replace existing equipment based upon the equipment replacement schedule. The budget was amended in the amount of $342,650 for the purchase of Lifepak Monitor Defibrillators and AED s. The 2014 budget includes funds to replace existing equipment based upon the equipment replacement schedule, including replacement of 13Thermal Imaging Cameras and funds to purchase mobile data terminals needed for the implementation of the New World Dispatch System. Page 74

82 67 Equipment Reserve Actual Budget Preliminary Budget January 1, Beginning Cash 867, , , Property Tax 160, ,000 33X Grants Charges for Services 361 Interest Earnings 1,324 1,800 1, Sale of Assets 35, Transfer In 244, Bond Proceeds - - Total Annual Revenue 280, , ,203 Labor Expenses 11 Wages 12 Overtime 20 Benefits Total Labor Expenses Operating Expenses 31 Office Supplies Fuel Operating Supplies Small Tool & Equipment 235, , , Professional Services Communications Travel/Training Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 235, , ,400 Total Program Expenses 235, , ,400 December 31, Ending Cash 913, , ,701 Page 75

83 68 LEOFF 1 RETIREE MEDICAL EXPENSE RESERVE POLICY PROGRAM DESCRIPTION LEOFF 1 Retiree Medical Reserve Created: The Commissioners shall create a separate Fund, and contribute to this fund, amounts necessary for maintaining sufficient funds to meet annual and future medical claims for retired LEOFF 1 employees. At December 31, 2012 the District estimated its Actuarial Accrued Liability for LEOFF 1 retiree medical expenses at approximately $7.8 Million. Source of Funds: Contributions by Amount or Percentage: Each year, as part of the annual budget process, the Commissioners shall set, as a fixed dollar amount or a percentage of annual property taxes, the amount of the annual contribution. Lump Sum Contribution: Periodically a sum of money may be identified as a one-time, lump-sum contribution. The amount may be specified during the regular budget process or upon notice that the sum is available. Interest: Interest earned from the account s invested balance shall accrue to the account. LEOFF 1 Retiree Medical Reserve Funds Usage: The fund may be drawn upon to pay the annual medical claims and expenses for LEOFF 1 retirees. LEOFF 1 Retiree Medical Reserve Fund Balance: Any contributions to the LEOFF 1 Medical Reserve Fund will remain in the fund until the liability has been extinguished and the funds are declared surplus by a resolution of the Board of Commissioners. Budget Changes or Highlights for 2014 The Leoff 1 Retiree Medical Reserve 2014 Budget does not contain any significant changes. Page 76

84 68 Leoff 1 Retiree Medical Expense Reserve Actual Budget Preliminary Budget January 1, Beginning Cash 1,046, , , Property Tax 415, ,450 33X Grants 342 Charges for Services 60, Interest Earnings 1,032 1, Sale of Assets 397 Transfer In 391 Bond Proceeds Total Annual Revenue 1, , ,370 Labor Expenses 11 Wages Overtime Benefits 390, ,950 Total Labor Expenses 390, ,950 Operating Expenses 31 Office Supplies Fuel Operating Supplies Small Tool & Equipment Professional Services Communications Travel/Training Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous Transfer OUT 453, Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 453, Total Program Expenses 453, , ,950 December 31, Ending Cash 594, , ,221 Page 77

85 74 COMPENSATED ABSENCES RESERVE ACCOUNT POLICY PROGRAM DESCRIPTION Compensated Absences Reserve Created: The Commissioners shall create a separate Fund, and contribute to this fund, amounts necessary to maintain an average target ending cash balance of approximately 5% of the compensated absences liability as reported in the latest published Annual Financial Report. At December 31, 2012 the estimated liability reported in the Districts Annual Financial Report was $3,764,000. A 5% reserve would be approximately $188,000. Source of Funds: Contributions by Amount or Percentage: Each year, as part of the annual budget process, the Commissioners shall set, as a fixed dollar amount or a percentage of annual property taxes, the amount of the annual contribution. Lump Sum Contribution: Periodically a sum of money may be identified as a one-time, lump-sum contribution. The amount may be specified during the regular budget process or upon notice that the sum is available. Interest: Interest earned from the account s invested balance shall accrue to the account. Usage of Compensated Absences Reserve Funds: The fund may be drawn upon for paying all or a portion of vacation and sick bank payout expenses upon the retirement of employees in situations where the annual operating budget does not provide sufficient funds. Budget Changes or Highlights for 2014 For 2014 estimated amount has been included for unanticipated retirements in Page 78

86 74 Compensated Absences Actual Budget Preliminary Budget January 1, Beginning Cash 135, , Property Tax 265,350 60,000 33X Grants 342 Charges for Services 361 Interest Earnings Sale of Assets 397 Transfer In 200, Bond Proceeds Total Annual Revenue 200, ,750 60,255 Labor Expenses 11 Wages 61, ,000 52, Overtime 20 Benefits 2,868 22,350 10,500 Total Labor Expenses 64, ,350 63,000 Operating Expenses 31 Office Supplies Fuel Operating Supplies Small Tool & Equipment Professional Services Communications Travel/Training Advertising Rentals & Leases Insurance Utilities Repairs & Maintenance Miscellaneous Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest - - Total Operating Expenses Total Program Expenses 64, ,350 63,000 December 31, Ending Cash 135, , ,162 Page 79

87 HEALTHCARE SELF-INSURANCE FUND This program serves as a standalone Fund to record the activity of the District's Healthcare Self- Insurance Program. At the October 4, 2011 meeting of the Board of Commissioners, the Board passed Resolution authorizing implementation of the self-insurance program effective January 1, The program will be administered by a Third Party Administrator, Employee Benefit Management Services, and will be reinsured through the purchase of individual and aggregate stop loss insurance. Budget Changes or Highlights for 2014 The 2014 budget has been developed anticipating a 12% increase in premium and claims payments. Page 80

88 72 Healthcare Self-Insurance Actual Budget Preliminary Budget January 1, Beginning Cash - 850, , Property Tax - 33X Grants Charges for Services 3,305,103 3,223,010 3,593, Interest Earnings Sale of Assets 397 Transfer In 453, Bond Proceeds Total Annual Revenue 3,758,655 3,223,610 3,594,246 Labor Expenses 11 Wages 12 Overtime 20 Benefits 2,755,109 2,823,500 2,978,929 Total Labor Expenses 2,755,109 2,823,500 2,978,929 Operating Expenses 31 Office Supplies Fuel Operating Supplies Small Tool & Equipment Professional Services 100, , , Communications Travel/Training Advertising Rentals & Leases Insurance 367, , , Utilities Repairs & Maintenance Miscellaneous 1,109-3, Transfer OUT Capital Outlay Debt Svc: Principal Debt Svc: Interest Total Operating Expenses 469, , ,591 Total Program Expenses 3,224,564 3,323,500 3,536,520 December 31, Ending Cash 534, , ,860 Page 81

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