CITY OF BUCKEYE BUCKEYE VALLEY RURAL VOLUNTEER FIRE DISTRICT

Transcription

1 CITY OF BUCKEYE BUCKEYE VALLEY RURAL VOLUNTEER FIRE DISTRICT September 7, 2016 Photo credit: AZ Department of Health Services PHOENIX DENVER TUCSON

2 Table of Contents DRAFT-SUBJECT TO FURTHER REVISION AND REVIEW OF ADDITIONAL INFORMATION Executive Summary 3 Industry Research 4 Critical Issues/Business Challenges & Trends 5 BVFD Historical Financial Results 6 BVFD Summary of Statements of Financial Activity 7 BVFD Summary of Statements of Net Position 8 BVFD Change in Capital Assets 9-10 BVFD Grants: Budget Versus Actual 11 BVFD Summary of Ambulatory Operations 12 BVFD Summary of ARCR Activity 13 BVFD Summary of ARCR Data 14 BVFD Ambulatory Receivable Turnover 15 BVFD Comparison of Ambulatory Versus Non-Ambulatory Financial Results 16 BVFD Personnel Costs 17 BVFD Summary of Budget Activity 18 BVFD Summarized Budget Comparison Schedule 19 BVFD Summarized Inflows/Outflows General Fund Compared to 2016/2017 Projections 20 City of Buckeye Summary of Statements of Net Position 21 City of Buckeye Changes in Net Position 22 City of Buckeye Adopted CON Proposal 23 BVFD Comparative Results 24 BVFD Summary of Total EMS Calls Population Projections by Municipal Planning Area 27 BVFD EMS Run Rate/Projected Population Analysis 28 BVFD Historical Population/Transport Analysis/Transport Results BVFD Historical & Projected Property Tax Revenues 31 BVFD Population/Transport Projections 32 BVFD Projected Results 33 2

3 Executive Summary DRAFT-SUBJECT TO FURTHER REVISION AND REVIEW OF ADDITIONAL INFORMATION BVFD s ambulatory service operations have incurred annual losses up to $2.1 million since Estimated population growth within BVFD s CON area is growing at a rapid pace while property taxes have reached a maximum rate level. Property tax revenues will be significantly impacted as areas are annexed over time. The City of Buckeye is financially more stable and generates revenues from multiple sources including property and transaction privilege (sales) taxes. Based on historical financial performance and projected trends in the CON population, BVFD s future viability, as it relates to ambulatory transports in the CON area, is uncertain. BVFD will benefit from City of Buckeye CON as a direct result of the EMS transport relief that it provides allowing BVFD to focus on financial sustainability based on a correlatable population tax base to CON population. 3

4 Industry Research DRAFT-SUBJECT TO FURTHER REVISION AND REVIEW OF ADDITIONAL INFORMATION EMS responded to 37 million calls for service in 2009; 28 million resulted in transports (76%)(2013/2014 Ambulance Industry Report). EMS delivered by government-based services is in large cities with a large tax base to help support the services, but not always keep pace with total costs (2013/2014 Ambulance Industry Report). Key factor influencing bottom line is payor mix-what % comes from Medicare, Medicaid, private insurance or self-pay (2013/2014 Ambulance Industry Report). Industry is labor-intensive; average annual revenue per worker is about $80,000 (First Research- Ambulatory Services) Significant portion of revenues come from Medicare, Medicaid, and private insurance payors (First Research-Ambulatory Services). Industry Indicators (First Research-Ambulatory Services): Diesel and gas prices fell 28% and 7.4%, respectively in 1/2016 compared to 1/2015 Prices for medical care commodities increased 1.5% in 12/2015 compared to 12/2014 Prices for medical care services rose 2.9% in 12/2015 compared to 12/2014 U.S revenue for ambulatory services rose 5.1% in Q compared to Q Based on 2014/2015 information obtained by The Risk Management Association: Healthcare-Ambulance Services, entities with revenues between $5-$10 million (31 count), on average, generated net profits of 6.8%. 4

5 Industry Critical Issues/Business Challenges & Trends Critical Issues Health Care Reform/Regulations Dependence on municipal contracts Change in reimbursement rates Business Challenges High risk, high liability exposure High number of uninsured Industry fraud Fuel price changes Loss of contracts Increased competition Uncompensated care Industry Opportunities Change in demographics Business Trends Rising costs of equipment and insurance Higher levels of medical care Training/equipment for special populations Consumer-directed care Industry consolidation 5

6 Buckeye Valley Fire District-Historical Financial Results Based on BVFD s Summaries of Statements of Net Position, total net assets for fiscal years ended June 30, 2014 and 2015 are less than results for 2011 through As a percentage of total assets, total net assets for the five-year period under analysis is below the industry benchmark results. The change in net assets for FYE June 30, 2015 was significantly higher than prior periods. Based on information BVFD provided in their financial statements, this change was primarily the result of the implementation of electronic charting, property tax increase to maximum level of 3.25% and reduced operating costs, such as personnel costs. 6

7 Buckeye Valley Fire District Summary of Statements of Financial Activity Compiled For the Fiscal Year Ended June 30, Operating revenues (program revenues) $ 5,546,419 $ 5,566,768 $ 4,690,256 $ 4,744,745 $ 4,750,941 $ 3,285,356 % change from prior period -0.4% 18.7% -1.1% -0.1% 44.6% -3.2% Operating expenses 10,256,050 8,799,568 9,290,482 9,293,154 8,708,107 8,008,045 % change from prior period 16.6% -5.3% 0.0% 6.7% 8.7% -6.9% Loss from operations $ (4,709,631) $ (3,232,800) $ (4,600,226) $ (4,548,409) $ (3,957,166) $ (4,722,689) Net nonoperating revenues Property taxes and fire district assistance tax $ 4,202,838 $ 4,257,153 $ 3,610,941 $ 3,966,299 $ 4,301,202 $ 4,823,153 % change from prior period -1.3% 17.9% -9.0% -7.8% -10.8% -22.0% Investment earnings 5,364 10,628 10,317 12,312 15,158 37,182 Miscellaneous 51,514 34,788 33,820 41, ,418 86,320 Net nonoperating revenues $ 4,259,716 $ 4,302,569 $ 3,655,078 $ 4,020,462 $ 4,428,778 $ 4,946,655 Changes in net assets $ (449,915) $ 1,069,769 $ (945,148) $ (527,947) $ 471,612 $ 223,966 Net assets, beginning of year 7,311,129 7,090,691 8,035,839 8,563,786 8,092,174 7,868,208 Restatement adjustment - (849,331) Changes in net assets (449,915) 1,069,769 (945,148) (527,947) 471, ,966 Net assets, end of year $ 6,861,214 $ 7,311,129 $ 7,090,691 $ 8,035,839 $ 8,563,786 $ 8,092, Results Operating revenues increased due to implementation of electronic charting; billing company receives information faster. Nonoperating revenues increased due to property rate increase from 3.10% to 3.25%. Operating costs decreased due to reductions in dispatch costs, EMS disposables and three less FTE. Restatement adjustment of $848,331 represents the net pension liability recorded for the change in accounting principle. Source: Audited financial statements (FYE June 30, 2011 through 2015); 2016 results, based on compilation, may not be accurately presented. 7

8 Buckeye Valley Fire District-Summary of Statements of Net Position Industry Benchmark NAICS As of June 30, Current and other assets 62.8% $ 5,419, % $ 4,515, % $ 5,384, % $ 5,513, % $ 5,045, % Capital assets 37.2% 6,141, % 6,161, % 6,469, % 6,871, % 6,884, % Total assets 100.0% 11,560, % 10,677, % 11,853, % 12,384, % 11,930, % % change from prior period 8.3% -9.9% -4.3% 3.8% 0.9% Deferred outflows related to pensions 679, % 12,240, % Total liabilities 28.9% 3,448, % 3,586, % 3,818, % 3,822, % 3,838, % % change from prior period -3.8% -6.1% -0.1% -0.4% -2.7% Deferred inflows related to pensions 1,480, % 4,928, % Net assets: Invested in capital assets, net of related debt 3,242, % 3,127, % 3,306, % 3,585, % 3,480, % Unrestricted 4,068, % 3,962, % 4,729, % 4,977, % 4,611, % Total net assets 71.1% $ 7,311, % $ 7,090, % $ 8,035, % $ 8,562, % $ 8,092, % Source: Audited financial statements % change from prior period 3.1% -11.8% -6.2% 5.8% 2.7% Footnotes 1 Based on 2014/2015 information obtained by The Risk Management Association: Public Administration-Fire Protection for entities with revenues between $3-$5 million (13 count); no data available in $5-$10 million. 8

9 Buckeye Valley Fire District-Change in Capital Assets Based on information obtained from BVFD s financial statements (Financial Highlights): In FYE June 30, 2009, BVFD purchased properties at Station 328 and 321, two ambulances, and various other pieces of equipment. In FYE June 30, 2010, BVFD purchased two ambulances, and various other pieces of equipment. In FYE June 30, 2011, BVFD completed construction for Station 326, purchased two ambulances, and various other pieces of equipment. In FYE June 30, 2012, BVFD completed construction for Station 321 and Station 328, purchased two ambulances, and various other pieces of equipment. In FYE June 30, 2013, BVFD reboxed two ambulances and purchased various other pieces of equipment. In FYE June 30, 2014, BVFD reboxed two ambulances and purchased various other pieces of equipment. Capital expenditures have been lower than what BVFD included in its forecasts in the most recent three fiscal years. 9

10 Buckeye Valley Fire District-Change in Capital Assets Fiscal Year Ended June 30, Beginning gross assets $ 4,438,212 $ 5,209,460 $ 6,139,595 $ 10,457,531 $ 10,649,203 $ 10,873,082 $ 10,795,003 Additions: Buildings 340,604 28,321 4,461, ,030 10,032-64,654 Vehicles 282, , , , , ,006 44,551 Vehicle unreconciled change 93,178 Equipment 148,228 82,834 14,602 72,913 16,000 19, ,595 Construction in progress - 406, , ,649 Total additions $ 771,248 $ 930,136 $ 5,054,755 $ 1,021,479 $ 306,932 $ 213,684 $ 484,449 Deletions Buildings (2,747) - - (20,910) Vehicles - (1) (429,850) (298,724) (83,053) (179,539) (102,649) Equipment (58,399) - (112,224) (137,796) Construction in progress - - (306,969) (469,937) Total deletions $ - $ (1) $ (736,819) $ (829,807) $ (83,053) $ (291,763) $ (261,355) Ending gross assets $ 5,209,460 $ 6,139,595 $ 10,457,531 $ 10,649,203 $ 10,873,082 $ 10,795,003 $ 11,018,097 Actual capital outlay $ 771,248 $ 930,136 $ 4,747,785 $ 551,543 $ 213,753 $ 213,684 $ 484,449 Amount budgeted 933,171 5,217, , , , ,900 1,185,305 Budget Variance $ (161,923) $ (4,287,139) $ 3,771,285 $ 140,043 $ (197,747) $ (468,216) $ (700,856) Source: Notes to financial statements and Budgetary Comparison Schedule Notes: Budgetary Comparison Schedule for FYE June 30, 2011 indicates capital outlay of $4,747,785 ($5,054,755 net of construction in progress deletions) Budgetary Comparison Schedule for FYE June 30, 2012 indicates capital outlay of $551,543 ($1,021,479 net of construction in progress deletions) Budgetary Comparison Schedule for FYE June 30, 2013 indicates capital outlay of $213,753 ($93,178 does not appear included) 10

11 Buckeye Valley Fire District-Grants: Budget Versus Actual Grant inflow is the next largest budgeted inflow after property/fire district taxes and charges for services. As a percentage of total budgeted inflows available for appropriations, grants have comprised 5 to 30 percent. Budgetary grant inflows have consistently been significantly overestimated which results in a significant distortion when accessing financial stability. Fiscal Year Ended June 30, Actual $ 229,700 $ 520,685 $ 367,620 $ 246,093 $ 163,432 $ 45,181 $ 13,493 Budgeted 1,070,841 4,076, , , , ,060 1,130,790 Budget Variance $ (841,141) $ (3,555,540) $ (459,930) $ (478,932) $ (561,593) $ (473,879) $ (1,117,297) Total Budget Inflows $ 8,493,441 $ 13,797,557 $ 9,659,742 $ 9,077,737 $ 9,077,737 $ 10,236,219 $ 10,207,328 Budgeted Grants as a % 13% 30% 9% 8% 8% 5% 11% 11

12 Buckeye Valley Fire District Summary of Ambulatory Operations BVFD's ARCR allocations were only included in the filing for FYE June 30, No detailed explanations were included that provide support for the allocation percentages applied. It cannot be determined whether the allocations are reasonable. Reconciling items were identified where no supporting documentation is available. Personnel wages and benefits allocated, as the largest expense category, ranged between 50 to 63 percent to ambulatory services (2009 through 2015) as assigned by BVFD. BVFD's ambulatory wages as a % of gross revenues is above the industry benchmark (IBISWorld) for 2012 through 2014 and significantly higher from 2008 through

13 Buckeye Valley Fire District Summary of ARCR Activity Ambulance service operations have incurred losses as reported by BVFD from 2008 through 2015 from a low of $91,339 in 2015 to a high of $2,068,031 in Consistent losses of approximately $1.2 million were incurred in 2013 and For the Fiscal Year Ended June 30, Gross ambulance service routine operating revenue $ 8,403,571 $ 7,993,850 $ 7,252,122 $ 6,842,528 $ 4,365,443 3,851,325 $ 3,963,714 $ 3,665,134 % change from prior period 5.1% 10.2% 6.0% 56.7% 13.3% -2.8% 8.1% 51.4% Less: Total settlements (2,698,366) (2,695,825) (2,194,914) (1,758,584) (1,247,919) (738,759) (550,379) (272,155) Net Revenue from Ambulance Runs $ 5,705,205 $ 5,298,025 $ 5,057,208 $ 5,083,944 $ 3,117,524 $ 3,112,566 $ 3,413,335 $ 3,392,979 Bad debt expense 1,015, , , , , , ,612 1,107,915 Wages, payroll taxes and benefits 3,208,681 3,869,019 3,760,533 3,180,839 3,066,191 3,144,512 3,252,670 2,516,856 Other operating expenses 1,572,768 1,658,950 1,664,914 1,182,527 1,004,601 1,089, , ,319 Total operating expenses $ 5,796,544 $ 6,527,631 $ 6,354,172 $ 5,278,794 $ 4,691,717 $ 5,180,597 $ 4,748,789 $ 4,328,090 Ambulance Service Net Income (Loss) $ (91,339) $ (1,229,606) $ (1,296,964) $ (194,850) $ (1,574,193) $ (2,068,031) $ (1,335,454) $ (935,111) 13

14 Buckeye Valley Fire District Summary of ARCR Data For the Fiscal Year Ended June 30, Number of ALS billable transports 5,462 5,890 6,206 6,018 4,256 4,077 4,152 3,817 Number of BLS billable transports N/A Total number of transports 6,022 5,958 6,211 6,019 4,259 4,078 4,156 3,817 % change from prior period 1.1% -4.1% 3.2% 41.3% 4.4% -1.9% 8.8% 13% Total number of loaded billable miles 115, , , , , , ,595 % change from prior period -3.0% -8.1% 9.4% 11.2% 4.1% -5.0% 7.1% 16.8% Combined ALS/BLS rate $ 1, $ 1, $ $ $ $ Mileage rate $ $ $ $ $ $ $ $ Avg charges per transport $ 1, $ 1, $ 1, $ 1, $ 1, $ $ $ (Gross transport revenue/total transports) % of deductions from revenue 44% 46% 43% 39% 43% 44% 27% 38% (Settlements and bad debt)/gross transport revenue) Return on total gross operating revenues -1.1% -15.4% -17.9% -2.8% -36.1% -53.7% -33.7% -25.5% (Net income/gross transport revenue) Avg net charges per transport $ $ $ $ $ $ $ $ (Gross revenue less settlements and bad debt/total transports) Wages as % of total costs (excludes bad debt) 67% 70% 69% 73% 75% 74% 77% 78% Source: Ambulance Revenue and Cost Reports (ARCR) 14

15 Buckeye Valley Fire District-Ambulatory Receivable Turnover Based on 2015 industry information, BVFD s ambulatory days receivable (average number of days that receivables are outstanding) exceeds the industry benchmarks. This could be an indication that BVFD is not adequately reserving for doubtful accounts. As of June 30, Ambulance receivables, gross $ 2,131,261 $ 2,154,711 $ 1,852,453 $ 1,738,190 $ 1,138,088 Allowance for doubtful accounts (935,524) (951,773) (750,432) (693,279) (416,864) Ambulance receivables, net $ 1,195,737 $ 1,202,938 $ 1,102,021 $ 1,044, ,224 Net ambulatory revenues (less settlements/bad debt) $ 4,690,110 $ 4,298,363 $ 4,128,483 $ 4,168,516 $ 2,496,599 Net ambulatory revenues/net ambulatory receivables Days' receivable Industry Days' receivables: NAICS

16 Buckeye Valley Fire District Comparison of Ambulatory Versus Non-Ambulatory Net income from non-ambulatory sources in FYE June 30, 2013 and 2014 was not sufficient to absorb losses from ambulatory sources. FYE June 30, 2015 FYE June 30, 2014 FYE June 30, 2013 Non- Non- Non- Ambulatory Ambulatory Ambulatory Ambulatory Ambulatory Ambulatory Total 1 Services 2 Services 3 Total 1 Services 2 Services 3 Total 1 Services 2 Services 3 Operating revenues $ 5,566,768 4,690, ,658 $ 4,690,256 4,298, ,893 $ 4,744,745 4,128, ,262 Operating expenses 8,799,568 4,781,449 4,018,119 9,290,482 5,527,969 3,762,513 9,293,154 5,425,447 3,867,707 Loss from operations (3,232,800) (91,339) (3,141,461) (4,600,226) (1,229,606) (3,370,620) (4,548,409) (1,296,964) (3,251,445) Net nonoperating revenues Property taxes and fire district assistance tax 4,257,153-4,257,153 3,610,941-3,610,941 3,966,299-3,966,299 Investment earnings 10,628-10,628 10,317-10,317 12,312-12,312 Miscellaneous 34,788-34,788 33,820-33,820 41,851-41,851 Net nonoperating revenues 4,302,569-4,302,569 3,655,078-3,655,078 4,020,462-4,020,462 Changes in net assets $ 1,069,769 $ (91,339) $ 1,161,108 $ (945,148) $ (1,229,606) $ 284,458 $ (527,947) $ (1,296,964) $ 769,017 Footnotes 1 Based on information obtained from audited financial statements 2 Based on information obtained from ambulance revenue and cost reports 3 Calculated difference assumed to be attributed to non-ambulatory services 16

17 Buckeye Valley Fire District Personnel Costs Personnel costs allocated to ambulatory services have varied from a low of 50% to a high of 63% since These costs, as a percentage of total net ambulatory revenues, have varied significantly from a low of 68% to a high of 145%. Fiscal Year Ended 6/30/2015 6/30/2014 6/30/2013 6/30/2012 6/30/2011 6/30/2010 6/30/2009 Wage Allocation Detail Management $ 351,470 $ 293,274 $ 285,928 $ 284,348 $ 334,538 $ 345, ,453 Paramedics and IEMTs 1,136,209 1,327,126 1,264,287 1,043,811 1,041,459 1,074,671 1,101,341 EMTs 856,201 1,213,611 1,233,712 1,072, ,653 1,030, ,818 Other Personnel 117, , , , , , ,442 PR taxes and fringe benefitd-all personnel 747, , , , , , ,616 Wages, taxes, benefits-allocated to ambulatory $ 3,208,681 $ 3,869,019 $ 3,760,532 $ 3,180,839 $ 3,066,191 $ 3,144,512 $ 3,252,670 Wages as % of total net ambulatory revenues 68% 90% 91% 76% 123% 145% 112% Total wages, taxes, benefits (per financials) $ 6,480,858 $ 6,764,871 $ 6,570,650 $ 6,250,223 $ 5,987,406 $ 6,157,717 $ 5,153,888 % of total wages allocated to ambulatory 50% 57% 57% 51% 51% 51% 63% Total BVFD wages/total BVFD revenues 66% 81% 75% 68% 73% 64% 61% Per Financial Statements Charges for services $ 5,553,275 $ 4,645,075 $ 4,581,313 $ 4,504,848 $ 2,917,736 $ 2,872,175 $ 3,201,186 Operating grants 13,493 45, , , , , ,700 Total program revenues $ 5,566,768 $ 4,690,256 $ 4,744,745 $ 4,750,941 $ 3,285,356 $ 3,392,860 $ 3,430,886 General revenues 4,302,569 3,655,078 4,020,462 4,427,446 4,946,655 6,298,132 4,980,680 Total revenues $ 9,869,337 $ 8,345,334 $ 8,765,207 $ 9,178,387 $ 8,232,011 $ 9,690,992 $ 8,411,566 Per ARCR Total Ambulance service net operating revenue $ 5,705,205 $ 5,298,025 $ 5,057,208 $ 5,083,944 $ 3,117,524 $ 3,112,566 $ 3,413,335 Less Bad debt expense 1,015, , , , , , ,612 Total Net Ambulatory Operating Revenue $ 4,690,110 $ 4,298,363 $ 4,128,483 $ 4,168,516 $ 2,496,599 $ 2,166,138 $ 2,897,723 Total number of transports 6,022 5,958 6,211 6,019 4,259 4,078 4,156 Wage cost (ambulatory portion) per transport $ $ $ $ $ $ $ Change in wage cost per transport -17.9% 7.3% 14.6% -26.6% -6.6% -1.5% 17

18 Buckeye Valley Fire District Summary of Budget Activity BVFD's projections for 2016 show decreases in property tax, fire assistance tax and charges for services while overall outflows are anticipated to increase by 7.3%. To compensate for this, BVFD projects inflows from other resources of approximately $900k comprised of $544k in miscellaneous income and $338k of transfers in from capital projects. However, in prior periods, significant variances existed between amounts budgeted for inflows from other sources versus the actual results: 2015-$1.3 million (budget) versus $64k (actual), 2014-$819k (budget) versus $262k (actual), $813k (budget) versus $307k (actual), and 2012-$813k (budget) versus $395k (actual). BVFD's projections for 2017 show slight increases (3.8%) in property tax, fire assistance tax and charges for services while overall outflows are anticipated to increase by 19.6%. To compensate for this, BVFD projects inflows from other resources of approximately $2.5 million comprised of $1.4 million in miscellaneous income and $1.1 million of transfers in from capital projects. However, as noted above, in prior periods significant variances existed between amounts budgeted for inflows from other sources versus the actual results. 18

19 Buckeye Valley Fire District Summarized Budget Comparison Schedule Fiscal Year Ended June 30, Resources (inflows); Budgeted property tax & fire assistance tax revenue $ 4,337,297 $ 4,177,049 $ 4,310,122 $ 3,665,016 $ 4,369,915 $ 4,369,915 % change from prior period 3.8% -3.1% 17.6% -16.1% 0.0% -12.0% Actual property tax & fire assistance tax revenue N/A 4,217,448 4,269,065 3,640,059 4,216,099 4,376,387 Budget Variance - Positive (Negative) N/A $ 40,399 (41,057) (24,957) (153,816) 6,472 Budgeted charges for services 5,322,170 5,128,293 4,613,822 5,752,633 3,895,311 3,895,311 % change from prior period 3.8% 11.2% -19.8% 47.7% 0.0% 19.9% Actual charges for services N/A 5,523,609 5,609,534 4,738,741 4,415,408 4,444,588 Budget Variance - Positive (Negative) N/A 395, ,712 (1,013,892) 520, ,277 Budgeted other resources (inflows) 2,529, ,309 1,283, , , ,511 Actual other resources (inflows) N/A 65,078 63, , , ,599 Budget Variance - Positive (Negative) N/A (817,231) (1,219,877) (556,156) (505,587) (417,912) Total Budgeted Resources (Inflows) $ 12,188,832 $ 10,187,651 $ 10,207,328 $ 10,236,219 $ 9,077,737 $ 9,077,737 Actual Resources (Inflows) N/A 9,806,135 9,942,106 8,641,214 8,938,431 9,215,574 Budget Variance - Positive (Negative) N/A (381,516) (265,222) (1,595,005) (139,306) 137,837 Charges to approriations (outflows): Budgeted personnel and employee benefits $ 8,304,015 $ 6,807,424 $ 6,712,030 $ 6,901,126 $ 6,310,636 $ 6,310,636 Actual personnel and employee benefits N/A 6,969,922 6,663,803 6,765,134 6,565,525 6,240,151 Budget Variance - Positive (Negative) N/A $ 162,498 (48,227) (135,992) 254,889 (70,485) Budgeted capital outlay 1,350, ,500 1,185, , , ,500 Actual capital outlay N/A 421, , , , ,543 Budget Variance - Positive (Negative) N/A (483,605) (700,856) (468,216) (197,747) 140,043 Budgeted other charges to appropriations (outflows) 2,534,651 2,474,724 2,309,993 2,653,193 2,355,601 2,355,601 Actual other charges to appropriations (outflows) N/A 2,864,229 2,349,735 2,132,943 2,236,478 2,013,811 Budget Variance - Positive (Negative) N/A 389,505 39,742 (520,250) (119,123) (341,790) Total Budgeted Charges to Appropriations (Out $ 12,188,831 $ 10,187,648 $ 10,207,328 $ 10,236,219 $ 9,077,737 $ 9,077,737 Total Actual Charges to Appropriations (Outflows) N/A 10,256,046 9,497,987 9,111,761 9,015,756 8,805,505 Budget Variance - Positive (Negative) N/A 68,398 (709,341) (1,124,458) (61,981) (272,232) Budgeted amounts for 2016 differ from original budget provided; amount were adjusted to reflect amounts per compilation. Actual amounts are based on compilation. 19

20 Buckeye Valley Fire District Summarized Inflows/Outflows General Fund 1 Compared to 2016/2017 Projections Actual Projected Projected Fiscal Year Ended June 30, Resources (inflows); Property tax & fire assistance tax revenue $ 4,337,297 $ 4,177,049 $ 4,269,065 $ 3,640,059 $ 4,216,099 $ 4,376,387 % change from prior period 3.8% -2.2% 17.3% -13.7% -3.7% Charges for services 5,322,170 5,128,293 5,609,534 4,738,741 4,415,408 4,444,588 % change from prior period 3.8% -8.6% 18.4% 7.3% -0.7% Other resources (inflows) 2,529, ,309 63, , , ,599 % change from prior period 186.7% % -75.8% -14.5% -22.2% Total Resources (Inflows) $ 12,188,832 $ 10,187,651 $ 9,942,106 $ 8,641,214 $ 8,938,431 $ 9,215,574 % change from prior period 19.6% 2.5% 15.1% -3.3% -3.0% Charges to approriations (outflows): Personnel and employee benefits $ 8,304,015 $ 6,837,424 $ 6,663,803 $ 6,765,134 $ 6,565,525 $ 6,240,151 % change from prior period 21.4% 2.6% -1.5% 3.0% 5.2% - Capital outlay 1,350, , , , , ,543 % change from prior period 58.9% 75.4% 126.7% 0.0% -61.2% - Other charges to appropriations (outflows) 2,534,651 2,500,727 2,349,735 2,132,943 2,236,478 2,013,811 % change from prior period 1.4% 6.4% 10.2% -4.6% 11.1% - Total Charges to Appropriations (Outflows) $ 12,188,831 $ 10,187,651 $ 9,497,987 $ 9,111,761 $ 9,015,756 $ 8,805,505 Footnotes DRAFT-SUBJECT TO FURTHER REVISION AND REVIEW OF ADDITIONAL INFORMATION % change from prior period 19.6% 7.3% 4.2% 1.1% 2.4% 1 Budgetary Comparision Schedules included in financial statements are for the General Fund only; actual results may differ from other schedules presented as total statements of activities include the capital projects fund and other adjustments 20

21 City of Buckeye-Summary of Statements of Net Position As of June 30, Current and other assets $ 147,827,758 $ 163,716, ,506,659 $ 181,294,168 $ 207,961,348 Capital assets 675,054, ,443, ,289, ,717, ,671,496 Total assets 822,882,716 $ 812,160, ,795, ,011, ,632,844 % change from prior period 1.3% -0.9% -1.9% -0.5% 2.7% Total deferred outflows of resources 14,487, , Other liabilities 21,421,309 $ 17,673,062 19,655,627 20,114,069 48,178,246 Noncurrent liabilities 217,216, ,635, ,353, ,376, ,247,123 Total liabilities 238,638,140 $ 199,308,530 $ 180,008,725 $ 190,491,009 $ 225,425,369 % change from prior period 19.7% 10.7% -5.5% -15.5% 12.3% Total deferred inflows of resources 5,293,166 Net investment in capital assets 503,498,453 $ 467,150, ,103, ,441, ,050,736 Restricted 44,229,151 55,709,088 51,499,532 64,939,696 51,484,492 Unrestricted 45,711,043 90,845,078 94,183,978 96,139, ,672,247 Total net position $ 593,438,647 $ 613,704,522 $ 639,787,144 $ 645,520,932 $ 615,207,475 % change from prior period -3.3% -4.1% -0.9% 4.9% -0.5% Source: Audited finanancial statements DRAFT-SUBJECT TO FURTHER REVISION AND REVIEW OF ADDITIONAL INFORMATION City of Buckeye's net asset position is 80 times the size of BVFD. The City of Buckeye is financially more stable and generates revenues from multiple sources including property and transaction privilege (sales) taxes. Notes Information includes aggregate of governmental and business-type activities. 21

22 City of Buckeye-Changes in Net Position For the Fiscal Year Ended June 30, Operating revenues (program revenues) 57,980,681 $ 48,986,719 $ 48,778,350 $ 68,046,545 $ 36,221,459 % change from prior period 18.4% 0.4% -28.3% 87.9% -11.2% Operating expenses 106,896, ,071,297 96,881,496 85,973,568 76,308,003 % change from prior period -11.7% 25.0% 12.7% 12.7% -5.7% Loss from operations (48,916,237) (72,084,578) (48,103,146) (17,927,023) (40,086,544) Net nonoperating revenues Property, sales & franchise taxes 33,866,454 28,506,812 28,008,540 26,219,664 26,454,826 % change from prior period 18.8% 1.8% 6.8% -0.9% -3.6% Investment earnings 376, , , , ,424 Other 17,903,874 19,016,329 13,944,360 16,110,032 11,407,163 Net nonoperating revenues 52,147,209 47,892,708 42,369,358 42,717,116 37,962,413 Changes in net assets $ 3,230,972 $ (24,191,870) $ (5,733,788) $ 24,790,093 $ (2,124,131) Net assets, beginning of year $ 613,704,519 $ 639,787,144 $ 645,520,932 $ 615,207,475 $ 618,128,101 Adoption of new accounting standard (22,059,326) (5,458,825) Correction of error/prior period adjustment (1,437,521) 3,568,070-5,523,364 (796,495) Changes in net assets 3,230,972 (24,191,870) (5,733,788) 24,790,093 (2,124,131) Net assets, end of year $ 593,438,644 $ 613,704,519 $ 639,787,144 $ 645,520,932 $ 615,207,475 Source: Audited finanancial statements Notes In FYE June 30, 2014, the negative change in net assets is predominately a result of increases in general government expenses (67%) and public safety expenses (13%). Information includes aggregate of governmental and business-type activities. Minor differences due to rounding. 22

23 City of Buckeye Adopted CON Proposal City of Buckeye Adopted Poposal Rates/Charges Units Amount Total number of ALS billable transports $ 1, ,710 $ 3,351,809 Total number of BLS billable transports $ 1, ,683 Total Transports 2,810 Total number of loaded billable miles $ , ,533 Average # miles per transport $ 4,012,025 Ambulance service routine gross operating revenue $ 4,012, % Less: Total settlements (1,031,492) -26% Net Revenue from Ambulance Runs 2,980,533 74% Ambulance Operating Expenses Bad debt 655,364 16% Wages, payroll taxes and benefits 1,690,972 42% G & A expenses 236,810 6% Cost of goods sold - 0% Other operating expenses 498,516 12% Interest expense - 0% Subscription service direct selling - 0% Total Operating expenses $ 3,081,662 77% Ambulance Serice Income (Loss) $ (101,129) -2.5% [1] Avg Charge per transport (DHS metric) $ 1,427.8 Avg NET Charge per transport (KVP metric) Net transport revenue(net of settlement only/total transports $ 1, Net transport revenue(net of settlement and bad debt)/total transports $ [2] % of Deductions from revenue (DHS Metric) 42% [3] Return on Total Gross Operating Revenues (DHS Metric) -2.52% [1] Gross transport revenue total transports [2] Deductions from Routine Operating Rev (settlements plus bad debt) Routine operating revenue [3] Net income Routine Operating Rev (before supportive funding) City of Buckeye s adopted CON proposal estimates transports totaling 2,810. For BVFD, the return on total gross operating revenues (net income/gross transport revenue) a performance metric used by the Arizona Department of Health Services, ranged from a low of negative 2.8% to a high of negative 53.7%. City of Buckeye s projected loss of $101,129 is less than BVFD s historical losses through The City s better financial position allows it to better absorb the loss. 23

24 BVFD Comparative Results Buckey Valley FD FYE June 30, 2015 FYE June 30, 2014 Rates/Charges Units Amount Rates/Charges Units Amount Total number of ALS billable transports $ 1, ,462 $ 6,123,519 $ 1, ,890 $ 6,248,283 Total number of BLS billable transports $ 1, ,636 $ 1, , Total Transports 6,022 5,958 Total number of loaded billable miles $ ,540 1,651,416 $ ,130 1,671,217 $ 8,403,571 $ 7,993,850 Average # miles per transport Ambulance service routine gross operating revenue $ 8,403, % $ 7,993, % Less: Total settlements (2,698,366) -32% (2,695,825) -34% Net Revenue from Ambulance Runs 5,705,205 68% 5,298,025 66% Ambulance Operating Expenses Bad debt 1,015,095 12% 999,662 13% Wages, payroll taxes and benefits 3,208,681 38% 3,869,019 48% G & A expenses 96,546 1% 1,018,052 13% Cost of goods sold - 0% - 0% Other operating expenses 1,413,076 17% 574,816 7% Interest expense 63,146 1% 66,082 1% Subscription service direct selling - 0% - 0% Total Operating expenses $ 5,796,544 69% $ 6,527,631 82% Ambulance Serice Income (Loss) $ (91,339) -1.1% $ (1,229,606) -15.4% [1] Avg Charge per transport (DHS metric) $ 1, $ 1, Avg NET Charge per transport (KVP metric) Net transport revenue(net of settlement only/total transports $ $ Net transport revenue(net of settlement and bad debt)/total transpor $ $ [2] % of Deductions from revenue (DHS Metric) 44% 46% [3] Return on Total Gross Operating Revenues (DHS Metric) -1.1% -15.4% [1] Gross transport revenue total transports [2] Deductions from Routine Operating Rev (settlements plus bad debt) Routine operating revenue [3] Net income Routine Operating Rev (before supportive funding) 24

25 Buckeye Valley Fire District Summary of Total EMS Calls For the period from FYE June 30, 2010 through 2015, total EMS calls averaged 4,400 per year, with 51% generated in the City of Buckeye, 18% in Buckeye Valley, and 31% in areas serviced by Buckeye Valley. In addition to the EMS calls, Buckeye Valley averaged 1,900 inter-facility calls (estimate) each year (from 2012 through 2015). Inter-facility transports typically represent a smaller portion of ambulance services revenues (2013/2014 Ambulance Industry Report). Nationally, approximately 8 percent of EMS transports are inter-facility transfers compared to BVFD s average of 30 percent. A population area that correlates to a property tax base sufficient to service that population will result in a more stable, sustainable operation. 25

26 Buckeye Valley Fire District Summary of Total EMS Calls Fiscal Year Ended June 30, Total calls 1 6,255 6,167 6,438 6,284 N/A N/A % change 1.4% -4.2% 2.5% N/A N/A N/A 6-Year Average City of Buckeye EMS calls 51% 2,542 56% 2,342 55% 2,261 52% 2,142 49% 2,123 47% 2,132 50% % change 8.5% 3.6% 5.6% 0.9% -0.4% N/A Buckeye Valley EMS calls 18% % % % % % % % change 3.7% -6.4% 0.1% -3.9% 16.0% N/A ther areas serviced by BV EMS calls 31% 1,204 27% 1,193 28% 1,282 29% 1,445 33% 1,554 34% 1,428 33% % change 0.9% -6.9% -11.3% -7.0% 8.8% N/A Total EMS calls 100% 4, % 4, % 4, % 4, % 4, % 4, % % change 5.6% -1.4% -1.0% -2.7% 5.4% N/A Total estimated interfacility calls 1,722 1,873 2,084 1,887 N/A N/A % change -8.1% -10.1% 10.4% N/A N/A N/A Footnotes 1 Includes EMS and interfacility call; breakdown of information was not available in fiscal year and In comparing total calls to the total number of transports per BV's ARCR reports, there are unknown discrepancies ranging from 209 to 265 less transports reported. 6-Year Avg Percentage of Calls By Location 0.2% 11.4% 2.0% 0.5% 0.2% 8.7% 7.9% 17.9% 51.2% City of Buckeye Buckeye Valley Lewis Prison Tonopah La Paz County Gila Bend Harquahalah PVN 26

27 Population Projections by Municipal Planning Area Population growth projections for the Buckeye Municipal Planning Area substantially surpass all other areas. % Change % Change % Change % Change Apache Junction 55,100 58,100 5% 68,500 24% 95,900 74% 125, % Avondale 80,500 86,800 8% 95,600 19% 112,400 40% 126,300 57% Buckeye 72,900 87,700 20% 147, % 310, % 488, % Chandler 263, ,000 9% 312,300 19% 327,700 25% 338,700 29% Florence 71,200 82,300 16% 106,000 49% 134,300 89% 164, % Gilbert 246, ,800 6% 286,200 16% 299,800 22% 304,100 23% Glendale 262, ,800 8% 305,600 16% 323,900 23% 343,800 31% Goodyear 80,200 98,600 23% 154,200 92% 207, % 293, % Maricopa 56,500 74,800 32% 102,600 82% 127, % 161, % Maricipa County Areas 96, ,100 9% 115,000 20% 141,800 47% 208, % Mesa 505, ,000 10% 620,100 23% 661,200 31% 684,300 35% Peoria 177, ,900 13% 271,200 53% 309,700 75% 342,600 93% Phoenix 1,579,700 1,731,300 10% 1,988,800 26% 2,160,200 37% 2,277,700 44% Pinal County Areas 96, ,900 6% 119,600 25% 149,600 56% 181,800 89% Scottsdale 231, ,000 10% 290,800 26% 308,700 33% 312,000 35% Surprise 136, ,000 9% 239,000 75% 362, % 452, % Tempe 172, ,100 9% 222,800 29% 255,500 48% 264,500 54% Source: Socioeconomic Projections: Population and Employement by Municipal Planning Are, Jurisdiction, and Regional Analysis Zone, prepared by Maricopa Association of Governments, June 2016: Final (populations greater than 50,000). 27

28 Buckeye Valley Fire District EMS Run Rate/Projected Population Analysis Property tax revenues have declined year after year from $5.9 million in fiscal year ended 2010 to $3.8 million in in fiscal year ended June 30, Property tax revenues increased to $3.8 million in fiscal year ended June 30, 2015 only as a result of a rate increase from 3.10% to a maximum level of 3.25%. In FYE June 30, 2010, BVFD's Ambulatory CON Population was 74,972; however, the population included in BVFD's tax base was only 24,096. BVFD s ambulatory operations incurred its highest losses (in excess of $2 million) in FYE June 30, Due to BVFD s lower property tax base in proportion to its CON population, ambulatory services may be dependent on community volunteers. Based on a 3-year average EMS run rate of 5,033 transports per 100,000 residents, and population projected data presented by Pollack & Company, our calculations show that as population grows, non-ambulatory profits will not be sufficient to sustain the projected ambulatory losses. As the CON population grows and demographics shift, increased capital expenditures, including new station locations, ambulances, and other equipment, as well as declining medical reimbursement rates and increased operating costs will further distress operations. 28

29 Buckeye Valley Fire District Historical Population/Transport Analysis FYE 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 FYE 6/30/15 6 yr avg City of Buckeye EMS calls 2,132 2,123 2,142 2,261 2,342 2,542 54% Buckeye Valley EMS calls % Unallocated difference (209) (261) (265) (227) (209) (233) -6% Other areas serviced by BV EMS calls 1,428 1,554 1,445 1,282 1,193 1,204 32% Total EMS calls 4,078 4,259 4,132 4,127 4,085 4, % Interfacility calls - - 1,887 2,084 1,873 1,722 Note: Ambulatory revenues could not be segregated between EMS and interfacility calls Total transports (Agrees to ARCR) 4,078 4,259 6,019 6,211 5,958 6,022 Population in BVFD CON Service Area Buckeye Municipal Planning Area 62,807 64,691 66,632 68,631 70,690 72,900 Inside BVFD Con but Outside City of Buckeye 12,165 12,155 12,145 12,136 12,126 12,116 Total BVFD Ambulatory CON Population 74,972 76,846 78,777 80,767 82,816 85,016 % change Pollack Rept 2.5% 2.5% 2.5% 2.5% 2.7% City of Buckeye Incorporated area 50,876 52,809 54,816 56,899 59,061 61,173 % change Pollack Rept 3.8% 3.8% 3.8% 3.8% Pollack Rept Population Included in BVFD's Tax Base Buckeye Unincorporated areas 11,931 11,882 11,816 11,732 11,629 11,727 Buckeye Unincorporated areas after annexation adjustment N/A N/A N/A N/A N/A N/A Inside BVFD Con but Outside City of Buckeye 12,165 12,155 12,145 12,136 12,126 12,116 Population Included in BVFD's Tax Base 24,096 24,037 23,961 23,867 23,754 23,843 % change Pollack Rept -0.2% -0.3% -0.4% -0.5% 0.4% 29

30 Buckeye Valley Fire District Historical Population/Transport Results FYE 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 FYE 6/30/15 3 yr avg EMS calls as % of CON population 5.4% 5.5% 5.2% 5.1% 4.9% 5.1% 5.0% Net ambulatory revenues (EMS) to BVFD Amb. CON population Total ambulatory expenses to BVFD Amb. CON population Property taxes to population in BVFD tax base capped at 3.25 EMS Run Rate per 100,000 residents 5,439 5,542 5,245 5,110 4,933 5,058 3 yr avg Average EMS Run Rate (3 years) 5,033 Interfacility run rate 2,580 2,262 2,026 2,289 3 yr avg Average net charges per transport $ $ $ $ $ $ Average wage cost per transport $ $ $ $ $ $ Average other costs per transport $ $ $ $ $ $ Average net loss per transport $ (507.12) $ (369.62) $ (32.37) $ (208.82) $ (206.38) $ (15.17) (143.45) Net ambulatory revenues $ 2,166,138 $ 2,496,599 $ 4,168,516 $ 4,128,483 $ 4,298,363 $ 4,690,110 Wages, payroll taxes and benefits 3,144,512 3,066,191 3,180,839 3,760,533 3,869,019 3,208,681 Other operating expenses 1,089,657 1,004,601 1,182,527 1,664,914 1,658,950 1,572,768 Net loss $ (2,068,031) $ (1,574,193) $ (194,850) $ (1,296,964) $ (1,229,606) $ (91,339) Available absorption from nonambulatory sources $ 3,170,609 $ 1,798,159 $ 666,462 $ 769,017 $ 284,458 $ 1,161,108 3 year avg Nonambulatory operating revenues $ 1,226,722 $ 788,757 $ 582,425 $ 616,262 $ 391,893 $ 876,658 $ 628,000 Property taxes 5,883,015 4,522,165 3,998,219 3,563,054 3,205,976 3,851,036 Fire district assistance tax 297, , , , , ,117 $ 405,000 Other nonoperating income 117, , ,576 54,163 44,137 45,416 $ 48,000 Total nonambulatory income 7,524,854 5,735,412 5,011,203 4,636,724 4,046,971 5,179,227 Nonambulatory expenses 4,354,245 3,937,253 4,344,741 3,867,707 3,762,513 4,018,119 85% Net income from nonambulatory sources $ 3,170,609 $ 1,798,159 $ 666,462 $ 769,017 $ 284,458 $ 1,161,108 In fiscal years ended June 30, 2013 and 2014, net income from nonambulatory sources were significantly less than amount needed to absorb net losses of ambulatory operations. 30

31 Buckeye Valley Fire District Historical & Projected Property Tax Revenues BVFD s property tax revenues declined 46% between FYE June 30, 2010 and The increase in 2015 is the result of a rate increase (maximum level). 31

32 Buckeye Valley Fire District Population/Transport Projections 6 yr avg 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2030 6/30/2040 City of Buckeye EMS calls 54% 2,398 2,479 2,564 2,651 2,738 4,556 10,570 Buckeye Valley EMS calls 19% ,594 3,697 Unallocated difference -6% (249) (83) (266) (275) (284) (472) (1,095) Other areas serviced by BV EMS calls 32% 1,436 1,485 1,535 1,588 1,640 2,728 6,329 Total EMS calls 100% 4,424 4,574 4,730 4,892 5,052 8,406 19,501 Estimated BVFD CON population x avg run rate 100,000 Interfacility calls 2,012 2,080 2,151 2,225 2,297 3,823 8,869 Total transports 6,436 6,655 6,882 7,117 7,349 12,230 28,370 Population in BVFD CON Service Area Buckeye Municipal Planning Area 75,670 78,546 81,530 84,629 87, , ,800 Inside BVFD Con but Outside City of Buckeye 12,225 12,335 12,446 12,558 12,662 19,411 76,628 Total BVFD Ambulatory CON Population 87,895 90,881 93,976 97, , , ,428 % change 3.4% 3.4% 3.4% 3.4% Pollack Rept Pollack Rept Pollack Rept City of Buckeye Incorporated area 63,620 66,165 68,811 71,564 74, , ,000 % change 4.0% 4.0% 4.0% 4.0% Pollack Rept Pollack Rept Pollack Rept Population Included in BVFD's Tax Base Buckeye Unincorporated areas 12,050 12,381 12,719 13,065 13,300 23,700 52,800 Buckeye Unincorporated areas after annexation adjustment 10,555 9,500 8,550 7,687 6,773 4,694 5,280 Inside BVFD Con but Outside City of Buckeye 12,225 12,335 12,446 12,558 12,662 19,411 76,628 Population Included in BVFD's Tax Base 22,780 21,835 20,996 20,245 19,435 24,105 81,908 % change -4.5% -4.1% -3.8% -3.6% -4.0% Assumptions Utilized: Inter-facility calls projections are a function of the change in population. Buckeye Unincorporated areas were gradually adjusted based on the assumption that areas would be annexed over time with an expectation of 90% annexation by year

33 Buckeye Valley Fire District Projected Results 3 yr avg 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2030 6/30/2040 EMS calls as % of CON population 5.0% Utilized 3-yr avg Net ambulatory revenues (EMS) to BVFD Amb. CON population Utilized 3-yr avg Total ambulatory expenses to BVFD Amb. CON population Utilized 3-yr avg Property taxes to population in BVFD tax base Utilized 2015 results EMS Run Rate per 100,000 residents 3 yr avg 5,033 5,033 5,033 5,033 5,033 5,033 5,033 Average EMS Run Rate (3 years) 5,033 5,221 Interfacility run rate 2,289 2,289 2,289 2,289 2,289 2,289 2,289 2,289 3 yr avg Average net charges per transport Average wage cost per transport Average other costs per transport Average net loss per transport (143.45) Based on 3-Year AVG Net ambulatory revenues $ 4,644,743 $ 4,802,509 $ 4,966,101 $ 5,135,739 $ 5,303,537 $ 8,825,542 $ 20,473,275 Wages, payroll taxes and benefits 3,835,271 3,965,541 4,100,623 4,240,697 4,379,252 7,287,452 16,905,251 Other operating expenses 1,732,775 1,791,631 1,852,661 1,915,947 1,978,546 3,292,470 7,637,791 Net loss $ (923,302) $ (954,664) $ (987,183) $ (1,020,905) $ (1,054,260) $ (1,754,380) $ (4,069,767) Available absorption from nonambulatory sources $ 741,733 $ 721,162 $ 701,919 $ 684,940 $ 666,506 $ 788,064 $ 2,250,724 3 year avg Nonambulatory operating revenues $ 628,000 $ 628,000 $ 640,560 $ 653,371 $ 666,439 $ 679, , ,363 Property taxes 3,752,938 3,597,257 3,459,037 3,335,314 3,201,853 3,971,220 13,494,077 Fire district assistance tax $ 405, , , , , , , ,789 Other nonoperating income $ 48,000 48,000 48,960 48,960 48,960 48,960 49,939 50,938 Total nonambulatory income 4,833,938 4,699,877 4,574,468 4,463,813 4,343,680 5,135,884 14,668,167 Nonambulatory expenses 85% 4,092,205 3,978,715 3,872,549 3,778,873 3,677,174 4,347,820 12,417,443 Net income from nonambulatory sources $ 741,733 $ 721,162 $ 701,919 $ 684,940 $ 666,506 $ 788,064 $ 2,250,724 $ 3,752,049 $ 3,922,297 Projected property taxes per BVFD Budget $ 3,794,437 Actual based on Compilation as of 6/30/2016 Projected Results show that net losses will continue to grow as the available absorption from nonambulatory sources is not sufficient to sustain operations in both the short and long terms. Projections do not account for the significant capital outlay required (i.e. ambulances, station land and buildings, and equipment) to service the growth in the CON population. Property taxes and other nonambulatory revenues were grown by 2% each year. 33