Chino Valley Fire District

Transcription

1 Chino Valley Fire District Monterey Incident, October 2017 Version: WEB

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3 Proudly Serving the Cities of Chino, Chino Hills and portions of the County of San Bernardino i

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5 Original Table of Contents Transmittal Letter.. 1 Awards.. 20 Resolution.. 22 Mission, Vision & Values.. 24 Organizational & Introductory Information District Overview.. 27 Board of Directors & District Management 30 Organizational Chart.. 31 Personnel Listing Vision Statement Based Goals 33 Departmental Reporting Account Code Structure 54 District Facilities.. 56 District Map.. 59 Calendar ary Practices & Accounting Principles Report Descriptions. 67 Summary Information Summary Summary - Multi-Year Comparison.. 72 Fund Balance Reporting Policy Changes in Fund Balance Fund Balance Graphs Detail Information Revenue History Expenditure History Divisional Expenditure History Year-Over-Year Comparisons ed Expenditures Variance Report Capital Replacement Funds Long-Range Financial Plan - 10-Year Outlook iii

6 Original Table of Contents Historical Trend Information Multi-Year Trend Reports & Graphs Legend Summary Revenues Summary Expenditures.. 97 Property Tax-Related Revenues. 98 All Other Revenues.. 99 Salary & Benefits Expenditures Non-Payroll Expenditures Total Staffing Glossary Information Glossary of Terms Glossary of Acronyms For Additional Information iv

7 June 13, 2018 Chino Valley Fire District City Center Drive Chino Hills, CA (909) Administration (909) Fax Chinovalleyfire.org Board of Directors Mike Kreeger President John DeMonaco Vice President Ed Gray Harvey Luth Sarah Ramos-Evinger Fire Chief Tim Shackelford The Chino Valley Fire District s mission is to provide exceptional service and to safeguard the community. Our Mission, Vision and Values Policy Statement (MVV) articulates the five cornerstones of the District s vision as well as our core values of faithfulness, integrity, respect and excellence. While ever mindful of our MVV, I am pleased to present and introduce the Original, also referred to as the FY19, to the Board of Directors. The FY19 represents a realistic yet conservatively based financial plan for the new fiscal year, ensuring that the District will continue to maintain exceptional, cost effective fire protection and emergency services as we safeguard our community. This budget will allow the District to further its vision to seek excellence in everything we do, remain transparent, appreciate our members, value the public trust above all else, and endeavor to learn and grow. New construction in the District and a strong local housing market are providing for growth in revenues, while simultaneously the District is experiencing challenges associated with greater demand for service, including increasing Fire & Emergency Responses emergency call volumes and 12,000 community risk reduction activities. 10,000 Total calls for emergency service 8,000 were in excess of 12,200 in 2017, up 6,000 about 5.5% over the prior year. Given the 4,000 growth patterns in District, it is likely 2,000 that this trend will continue for the next - several years Chart 1 Special Districts Leadership Foundation - District of Distinction Since

8 FY Original June 13, 2018 Page 2 TRANSMITTAL LETTER NEW THIS YEAR Cardiac Care Program According to the American Heart Association, sudden cardiac arrest (SCA) results in more than 350,000 lives lost across the U.S. every year. Tragically, less than 10% of SCA victims survive. It is our goal to increase survivability from SCA here in the District. As part of that effort, I am pleased to announce that the District is making significant financial commitments toward its cardiac care program in the FY19. Between lifesaving cardiac care training for our personnel and the purchase of new state-of-theart heart monitors for front-line apparatus, the District is investing over $350,000 in our cardiac care program in FY19. This initiative will be funded from revenues reserved for one-time and special purchases. I am also pleased to announce enhancements to our budgetary reporting this year, including: GFOA Award In addition to being recognized by the California Society of Municipal Finance Officers (CSMFO) again this past year with an Operating Excellence Award, the District has also received national budgetary award recognition from the Government Finance Officers Association (GFOA) with a Distinguished Presentation Award in our inaugural application year. Both awards are for the District s FY18 document. I d like to extend my sincere appreciation to the Finance department staff for their efforts in securing this national budget award which affirms the District s ongoing commitment to transparency. The award also reflects the commitment of the District s Board of Directors and staff to meeting the highest principles of governmental budgeting. Goals and Departmental Reporting Also new this year, we re incorporating goals reporting into the budget. Based on the District s MVV, we ve established high level Vision Statement Based Goals. In turn, we ve also incorporated complementary, measurable departmental goals in our new Departmental Reporting section. In addition to reporting on goals, the new Departmental Reporting section also reflects staffing and summary budget reporting at the department level. Special Districts Leadership Foundation - District of Distinction Since

9 FY Original June 13, 2018 Page 3 TRANSMITTAL LETTER CSDA District of Distinction Platinum Award Through the California Special Districts Association and its affiliated Special District Leadership Foundation (SDLF), the District has been an accredited SDLF District of Distinction (DoD) since 2008, and has held an SDLF District Transparency Certificate since SDLF is an independent non-profit organization formed to promote good governance and best practices among California special districts. I am proud to announce that this past year the District was honored with the coveted DoD Platinum Award by SDLF. The prestigious Platinum designation is reserved for elite California special districts who meet the very highest standards for governance and management of special districts. The stringent requirements for designation eligibility include: Special District Administrator Certification by the district s chief executive officer; Achievement of Recognition in Special District Governance certification by all governing board members; The District s continuing qualification for DoD accreditation. DoD accreditation recognizes districts for their prudent fiscal practices as well as other important criteria which evidence effective operations and governance of special districts. The Transparency Certificate recognizes a special district s ability to meet comprehensive open government requirements. EXTENSIVE BUDGET DEVELOPMENT PROCESS This document represents the culmination of a collaborative budget development process which officially kicked-off last December and spanned some six months. An extensive number of study and review sessions were held in support of the compilation of the budget, including a Workshop in May. Beginning last fiscal year, the Preliminary and Final budget cycles were consolidated into a single Original budget cycle and publication. This consolidation of budget cycles provides for a more streamlined and efficient budget process. A FY19 Calendar is included in this budget document for reference. BUDGET HIGHLIGHTS Highlights of the FY19 include a proposed net increase in Fund balance of better than $315,000. This is based on total revenues of nearly $42.2 million compared to total expenditures of slightly more than $41.8 million, including about $1.5 million in capital outlay, as depicted in Table 1 below. Including transfers in from the capital replacement portion of Fund balance, net operating revenues for FY19 are projected to be more than $1 million, and Unrestricted ending Fund balance is projected to be $19.4 million at June 30, Special Districts Leadership Foundation - District of Distinction Since

10 FY Original June 13, 2018 Page 4 TRANSMITTAL LETTER Fund: 100 General Fund Year-over-Year Comparisons Original 2018 Amended 2019 Original Variance Change Revenue Property tax revenue $ 27,735,207 $ 30,456,742 $ 2,721, % Contract revenue 9,641,601 9,718,853 77, % Other revenue 1,979,000 1,989,000 10, % Prior Year Encumbrance Rollovers Revenue Totals $ 39,355,808 $ 42,164,595 $ 2,808, % Expenditures Salaries and benefits $ 31,566,645 $ 33,754,652 $ 2,188, % Services and supplies 5,822,282 6,585, , % Capital outlay 1,533,326 1,509,334 (23,992) -1.6% Prior Year Encumbrance Rollovers Operating & Capital Expenditures $ 38,922,253 $ 41,849,390 $ 2,927, % Net Change in Fund Balance $ 433,555 $ 315,205 $ (118,350) Transfers In - Capital Replacement $ 421,100 $ 727,860 $ 306,760 Net Operating Revenue $ 854,655 $ 1,043,065 $ 188,410 REVENUE RECAP Table 1 Revenues of nearly $42.2 million in the FY19 represent a $2.8 million or 7.1% increase over FY18 Amended revenues. Contract revenues of about $9.7 million, combined with property tax revenues of $30.5 million, represent some 95% of District revenues. The revenue mix by major category is depicted in Chart 2 below. Chart 2 Special Districts Leadership Foundation - District of Distinction Since

11 FY Original June 13, 2018 Page 5 TRANSMITTAL LETTER Property Tax-Related Revenues The District receives direct property tax revenues for tax rate areas (TRA) located within the cities of Chino and Chino Hills, as well as adjacent unincorporated areas of San Bernardino County located with the District s service area. Primarily as a result of now former redevelopment areas in the City of Chino, direct property tax payments received by the District for Chino TRA average less than half of the average property tax share received by the District for non-chino TRA. An equity agreement between Chino and the District provides contract revenue payments to the District, when combined with direct property tax payments received by the District for Chino TRA, equivalent to the average property tax share received by the District in non-chino TRA. For non- Chino TRA, the District receives its full property tax share directly through the County. The analysis and projection of property tax-related revenues, both direct property tax revenue combined with the aforementioned equity agreement revenue, is critical to the District s budget. These revenues have been forecast in close cooperation with the District s property tax consultant, with achievable, yet conservative estimates for growth in revenues. A thorough review of the tax role has been completed, including projected assessed values and forecasts for additions to the tax role for new construction within the District. Revenues have also been validated in comparison to FY18 updated projections as well as historical trends, with an emphasis on revenue trends over the last five years. The District is projecting a very healthy 7.5% total growth rate in property tax-related revenues for FY19, in comparison to the amended FY18. The projected growth rate is comprised of the following major components: Description Projected Year-Over-Year Property Tax-Related Revenue Increases Table 2 % Change vs. FY18 Amended Impact of updated projected revenues for FY18 3.5% Projected year-over-year revenue growth for FY19 4.0% As a result of fiscally conservative budgeting in FY18, recently completed projections of FY18 adjusted revenues indicate that a 3.5% adjustment is in order in this budget to reflect higher than budgeted base revenues going into FY19. A 4% real growth rate in year-over-year property tax revenues attributable to annual valuation changes, projected additions of new development to the tax rolls, and other property tax adjustments is appropriate for FY19. This rate projection has been thoroughly vetted based on trend analysis, consultation with the District s contracted property tax consultants, as well as Special Districts Leadership Foundation - District of Distinction Since

12 FY Original June 13, 2018 Page 6 TRANSMITTAL LETTER known and anticipated real estate development in District. This growth rate is achievable yet consistent with the District s practice of conservative revenue forecasts. $40 Property Tax-Related Revenues (in millions) $30 $20 $10 $ Property tax revenue Contract revenue Chart Major components of property-tax related revenues are as follows: PROPERTY-TAX RELATED REVENUES (in millions) FY15 FY16 FY17 FY18 FY19 FY18 vs FY19 Change Secured property taxes $21.65 $21.78 $23.53 $24.60 $27.41 $2.81 Current services Unsecured property taxes (0.04) Property taxes - prior and penalty (0.10) All other property taxes $30.87 $32.92 $34.98 $37.37 $40.18 $2.81 Table 3 Special Districts Leadership Foundation - District of Distinction Since

13 FY Original June 13, 2018 Page 7 TRANSMITTAL LETTER Other Revenues Other revenues, which account for roughly 5% of the District s budget, are conservatively projected to be substantially flat in aggregate, in comparison to the FY18, at just under $2 million. Major components of other revenues are as follows: OTHER REVENUES (in millions) FY15 FY16 FY17 FY18 FY19 FY18 vs FY19 Change Permit & inspection fees $0.8 $0.7 $0.8 $0.9 $1.2 $0.3 Mutual aid recoveries (0.3) All Other $2.1 $1.9 $1.9 $2.0 $2.0 - Table 4 Permit and inspection fee revenue results from the recovery of costs for fire prevention activities such as new construction planning and special event permits, and annual fire and life safety inspections of permitted occupancies such as places of assembly, high piled storage locations and hazardous materials operations. Although these fees have remained relatively consistent over the last several years, the District increased its user fee schedule for the first time in nearly ten years during the second half of FY18. As a result of a full year of fee schedule increases, combined with a trend toward increased fee-related activity in the District, permit and inspection fees are anticipated to increase by a healthy margin in FY19, from $0.9 million in FY18 to $1.2 million next year. Mutual aid recoveries, which represent reimbursements from state and federal agencies for emergency responses to out-of-area incidents, can be extremely volatile from year-to-year and difficult to project due to the highly unpredictable nature of those events. The FY19 budget amount for mutual aid recoveries is conservatively projected at $0.5 million, a reduction of $0.3 million from the FY18 budgeted amount. EXPENDITURE RECAP As a service organization, salaries and benefits represent 81% of total budgeted expenditures in FY19, and 84% of budgeted expenditures exclusive of capital outlay. Total non-capital expenditures for FY19 are projected to increase about 8.7%, or roughly $3 million, on a combined basis, in comparison to the FY18. The majority of the increase, about $2.2 million, or 6.9% over the FY18 Amended, is in salaries and benefits. Special Districts Leadership Foundation - District of Distinction Since

14 FY Original June 13, 2018 Page 8 TRANSMITTAL LETTER Chart 4 Salaries and benefits As work shifts for the vast majority of safety positions require constant staffing, open or vacant positions result in associated shifts being covered on an overtime rate basis. The District develops projections for the number of open positions each year for budgetary purposes. Open positions are created through a combination of retirements and other separations of employment. Chart 5 Chart 5 details the historical trend in the number of open positions over the last five years, as well as the budgeted number of open positions projected for FY19. Due to a significant hiring late in FY18, the District anticipates beginning FY19 with no safety position vacancies. Accordingly, the projected vacancy factor for FY19 is proportionately lower than in recent years past. Vacant positions typically result in higher coverage (overtime) costs and proportionately lower costs in regular salaries and employee benefits. For FY19, on average, the total cost to staff an open safety position on an overtime basis is projected to be substantially equivalent to that of a full-time benefitted regular employee. Special Districts Leadership Foundation - District of Distinction Since

15 FY Original June 13, 2018 Page 9 TRANSMITTAL LETTER As mentioned previously, total salaries and benefits are projected to increase about 6.9% over FY18 levels. Major components of the increase are detailed as follows: Description Services and supplies Projected Year-Over-Year Salary & Benefit Changes (Net) Table 5 % Change vs. FY18 Amended Negotiated wage increases 3.0% Increases in health and deferred compensation benefits 2.1% CalPERS retirement cost projected increases 1.2% Other miscellaneous changes 0.6% Services and supplies are expected to increase by about $760,000, or 13.1% over the FY18 Amended. Major components of the increase are as follows: Description Projected Year-Over-Year Services and Supplies Changes (Net) Clothing Triennial safety uniforms ($120,000) & five-year safety personal protective clothing replacement ($322,500) Table 6 % Change vs. FY18 Amended 7.8% County services Bi-annual election ($150,000) 2.6% All other miscellaneous changes ($167,500) 2.7% See the ed Expenditures Variance Report and the Transactions reports for detailed expenditure variances and additional information on salaries and benefits, and services and supplies. Special Districts Leadership Foundation - District of Distinction Since

16 FY Original June 13, 2018 Page 10 TRANSMITTAL LETTER Capital outlay The District will be investing some $1.5 million in capital outlay in FY19, most significantly including: Type 1 replacement fire engine for Station 64 - $852,200* New state-of-the-art cardiac monitors (16) - $299,000 Replacement staff vehicles (6) - $167,000 *Includes costs for loose equipment, radios, etc. Additionally, the District will have invested nearly $5.3 million in capital infrastructure over the three-year period ending in FY19. OTHER INITIATIVES FUNDED THROUGH THIS BUDGET There are a number of projects, purchases and other initiatives which will be undertaken in FY19 with funding from this budget, including: Full equivalent employee share of retirement contributions by all personnel, resulting in a projected $2.2 million retirement cost savings for the District in FY19; Important community preparedness outreach programs for the benefit of our residents and businesses; Professional State of the District video production and collateral materials for the District s annual marque public event; Investments in personnel in the form of staff training and continuing education for our first responders and support staff, including comprehensive training for all safety personnel on the use of the new cardiac care monitors; Fire apparatus mobile technology upgrades for all front-line units. ECONOMIC AND OPERATIONAL ISSUES Continuing Pension Cost Mitigation While I m proud to present a surplus budget to the Board, and while the state of the District s overall financial condition is very stable, like other government agencies in California, particularly those with public safety retirement plans, we are not immune to the effects of the public pension crisis. Pension cost issues have been and will continue for the foreseeable future to be a significant budgetary concern for government agencies throughout the state and across the nation. Special Districts Leadership Foundation - District of Distinction Since

17 FY Original June 13, 2018 Page 11 TRANSMITTAL LETTER Thankfully, our Board of Directors has been proactive in taking steps to mitigate the rising costs of public pensions. Pension Cost Sharing I am pleased to report that our classic retirement status employees are contributing 12% of qualified pay, and classic miscellaneous members contributing 11% of pay toward retirement. Full pension reform has only been possible through the shared commitment and partnership of the District s Board of Directors, our labor groups and unrepresented management and confidential personnel. Cumulatively, including our projections for FY19, in excess of $7 million will have been contributed by our employees toward retirement benefit costs over the five-year period since employee pension cost sharing began. Chart 6 below graphically depicts employee retirement contributions over five years, including amounts contributed by both PEPRA and Classic status pension plan employees. $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Employee Pension Cost Sharing Total PEPRA Total Classic TOTAL Chart 6 Special Districts Leadership Foundation - District of Distinction Since

18 FY Original June 13, 2018 Page 12 TRANSMITTAL LETTER Section 115 Trust/Accelerated Retirement Funding The District s Section 115 Retirement Trust was initially funded with $5 million from District reserves late in FY17. In conjunction with the establishment of the Retirement Trust, a Board policy was adopted allocating up to 1/3 of annual budget surpluses for further reduction of pension liabilities. A five member employee Trust Investment Committee was authorized by the Board to oversee the investments of the Retirement Trust, working with the trust administrator and professional investment advisor, PFM Asset Management, LLC, a 5.5% average annualized return benchmark has been established by the Committee for Retirement Trust fund investment purposes. Accordingly, Chart 7 below depicts average hypothetical Retirement Trust fund balances projected over a 10-year period, based on the 5.5% investment return benchmark, under two different scenarios. Scenario A assumes reinvestment of all funds over the 10-year period and additional fund contributions equal to 1/3 of applicable projected budget surpluses based on the District s Long-Range Financial Plan which appears later in this document. Scenario B assumes benefit Chart 7 Special Districts Leadership Foundation - District of Distinction Since

19 FY Original June 13, 2018 Page 13 TRANSMITTAL LETTER payment withdrawals in three of the next 10 years, totaling $1.5 million; $400,000, $500,000 and $600,000 in FY21, FY24 and FY26, respectively. As depicted graphically in Chart 7, Scenario A projects Retirement Trust fund balances of $10 million at the end of 10-year period in FY27, while Scenario B depicts balances of $8.3 million at the end of FY27. The District intends to utilize funds accumulated in the Retirement Trust for budget stabilization purposes, drawing from the Retirement Trust to fund pension obligations during years of significant budgetary constraint or fiscal emergency. These hypothetical scenarios are presented here for discussion purposes only. As of May 31, 2018, the restricted account balance in the District s 115 Trust amounted to approximately $5.4 million. The FY19 is projected to yield about $105,000 in additional pension funding, an amount equal to one-third of the projected FY19 budget surplus, as per policy. These funds would be contributed toward pension obligations in FY20 after completion of the annual independent audit for FY19. On a related note, in FY18, I m happy to say that the Board directed staff to contribute an additional discretionary contribution to CalPERS in the amount of $450,000 from Unassigned Fund balance. This contribution was made in March The District s commitment to accelerated pension funding, combined with employee cost sharing, clearly demonstrates the District s ongoing pledge to proactive pension cost management. Chart 8 below depicts the District s historical required pension contributions as a percentage of total salaries and benefits expenditures over a five-year period, including projected FY19 costs. The District has been successful in mitigating increases in pension over these last several years as graphically depicted below: 16.5% 16.0% 15.5% 15.0% 14.5% 14.0% 13.5% Pension Costs As % of Total Salaries & Benefits (in millions) $6.0 $5.0 $4.0 $3.0 $2.0 $ % FY15 Actuals FY16 Actuals FY17 Actuals FY18 Projected* FY19 $- Dollars % of Salaries & Benefits *Exclusive of $450,000 additional discretionary contribution made to CalPERS in FY18 Chart 8 Special Districts Leadership Foundation - District of Distinction Since

20 FY Original June 13, 2018 Page 14 TRANSMITTAL LETTER Projected Increases in CalPERS Costs Retirement plan costs involve two basic cost components: the normal cost rate, expressed as a percentage of payroll, and the unfunded actuarial liability (UAL) which is a fixed amount payment due each fiscal year. As has been previously discussed with our Board of Directors, CalPERS has implemented an aggressive plan to increase the funded status of retirement plans through a significant ramp-up of fixed amount UAL payments by employers over a multi-year phase-in period. The District receives an annual actuarial plan valuation of its retirement plans from CalPERS each year. The most recent valuation available is for the plan year ended June 30, 2016, which sets retirement contribution rates for FY19. The table below is derived from the June 30, 2016 CalPERS valuations for the District s retirement plans and also sets forth the projected future employer contributions for UAL over the next six years beyond FY19. These estimates project fixed amount UAL payments going from $2.16 million in FY19, to more than double in FY25, at a projected $4.91 million. After this five-year ramp-up in UAL payments, CalPERS has indicated, all other factors aside, UAL payments will generally level out for the following 25 years, and ramp-down over the last five years of this 30-year funding plan. These higher UAL payments should contribute to a significantly higher funded plan status over time than would have otherwise been achieved. CalPERS Projected Future Employer Contributions (UAL) (in millions) FY19 FY20 FY21 FY22 FY23 FY24 FY25 Safety $2.03 $2.59 $3.04 $3.59 $4.06 $4.37 $4.63 Miscellaneous TOTAL $2.16 $2.75 $3.22 $3.80 $4.30 $4.63 $4.91 Table 7 In addition to projected increasing UAL costs, normal cost rates are also expected to increase. Although our pension cost projections are subject to change depending on a number of factors and assumptions, the District must continue to proactively manage its long-term pension obligations. While the District s aforementioned pension mitigation strategies will provide some measure of relief to the significant projected retirement cost increases over the next several years, additional deliberate action will need to be undertaken by the District over time to proactively address the rising costs of pensions over the next several years. Discount Rate Changes at CalPERS Impacting FY19 Rates & Beyond In December 2016, CalPERS announced a lowering of its discount rate assumption from 7.5% to 7% over a three year phase-in period, beginning in Fiscal The discount rate is the assumed annual rate of return on retirement plan investments. Lowering of the discount rate means that CalPERS retirement plans will see increases in benefit costs, translating to higher employer contributions over time. Special Districts Leadership Foundation - District of Distinction Since

21 FY Original June 13, 2018 Page 15 TRANSMITTAL LETTER The benefits of reducing the discount rate include the strengthening of the long-term sustainability of the pension fund. The lower rates will improve the likelihood of CalPERS meeting or exceeding assumed rates of return long-term, as well as reducing investment volatility in the CalPERS investment portfolio, and ultimately translating to a higher funded plan status over time. The discount rate phase-in is as follows: CalPERS Discount Rate Reduction Schedule Fiscal Year Valuation Date for Required Contribution Discount Rate June 30, % June 30, % June 30, % Table 8 The fiscal impacts of higher employer contribution rates from discount rate reductions will be fully phased-in by the fiscal year, and are included in these rate projections. Additional information will be provided to employers in conjunction with the June 30, 2017 actuarial valuations, which are due out this summer. As this additional information becomes available, it will be shared with the Board and the public, and will be factored into our future retirement cost projections, as well as associated budgets and long-range financial plans. Succession Planning and Related Issues Senior Leadership Tenure Within the District s senior management team, out of a combined ten sworn and non-sworn management positions, eight team members are either at or roughly within five years of normal retirement age. Active succession planning measures are underway to ensure a smooth senior management transition over the next several years. While the District strives to fill promotional positions from within the organization, if necessary, the District will need to recruit outside talent to fill key management positions over time. Two new Administrative Battalion Chief positions were created, funded and staffed through internal promotions in FY18. These new management positions will offer valuable high-level experience to potential future senior leaders of this organization. It is anticipated that these two positions will be transitioned to shift BC positions when Battalion Two is initiated, likely in FY21. Special Districts Leadership Foundation - District of Distinction Since

22 FY Original June 13, 2018 Page 16 TRANSMITTAL LETTER Firefighter Recruitment The competition for recruitment of talented and experienced sworn fire personnel in southern California is fierce. As many organizations have experienced in recent years, the District has realized a significant number of retirements, particularly in the firefighter ranks. During FY18, the District experienced as many as 11 safety openings at one point in time, primarily as a result of retirements, representing roughly 11% of 102 fire station-based shift positions stations. As these are constantly staffed positions, coverage on an overtime basis is necessary to temporarily staff these openings. It is anticipated that the majority of the current openings will be filled by the beginning of FY19. Standards of Cover Assessment and Update to Master Plan Project Working with Citygate Associates, LLC, the District completed a Standards of Cover Assessment (SOC) and an update to the Master Plan in late FY18. The SOC assessed the District s operations in comparison to industry standards and best practices and provided a tool for: Assessing Risk... Defining Standards Assessing community fire, emergency medical service (EMS), and nonfire Planning & Evaluating... Measuring... risk; 2. Defining baseline Creating a Plan... emergency response performance standards; 3. Planning future station locations; 4. Determining concentration, distribution and utilization of resources; 5. Evaluating workload and ideal unit utilization; 6. Measuring service delivery performance; 7. Assisting in the strategic planning and policy development process relative to resource procurement and allocation. Additionally, the District s Master Plan, a companion document to the SOC, was updated as a part of this project. These reports are expected to have significant bearing on the District s strategic plans over the next several years as we utilize the results to help chart the District s future. Significantly, the SOC validated the need for an eighth District fire station, with a location tentatively identified in the City of Chino Hills. Discussions regarding Station 68 are ongoing with the City and no significant associated fiscal impacts are contemplated in the FY19. Special Districts Leadership Foundation - District of Distinction Since

23 FY Original June 13, 2018 Page 17 TRANSMITTAL LETTER The District s Long-Range Financial Plan contemplates Fire Station 68 being operational beginning in FY21, with a potential ninth fire station coming online in FY25. DISTRICT STAFFING AND LABOR OVERVIEW A total of full-time equivalent (FTE) positions are authorized in the FY19 budget. There are no proposed staffing additions in FY19. Pay and benefits for the majority of District personnel are provisioned under one of two Memorandums of Understanding (MOU). The Chino Valley Professional Firefighters (CVPF) represent all sworn safety personnel below the rank of Battalion Chief. Teamsters represents non-safety personnel, exclusive of management, confidential and part-time staff members. Salary and benefit provisions for unrepresented staff are specified by board resolution, and terms of employment for the fire chief are specific by contract. A summary of the highlights of the District s current labor commitments is as follows: LABOR COMMITMENTS CVPF Local 3522 (Safety) Teamsters Local 1932 (Non-Safety) Unrepresented Management & Confidential Personnel^ # of Covered Employees MOU Expiration June 30, 2021 June 30, 2020 June 30, 2021 (Board resolution) Classic Retirement Benefit Formula PEPRA Retirement Benefit Formula (Non- Safety) 55 (Safety) (Non- Safety) 57 (Safety) 55 (Non-Safety Mgmt) 55 (Safety Mgmt) 62 (Non-Safety) 57 (Safety) FY19 Salary Increase 3% 3% 3% Future Known Salary Increases 2% in FY20 2% in FY21 2% in FY20 2% in FY20 2% in FY21 Table 9 ^Excludes unrepresented part-time personnel and the fire chief, who serves under an employment contract. 1 Personnel hired on or after January 1, 2013 who are defined as new members under the Public Employees Pension Reform Act of 2013 (PEPRA), have a reduced retirement benefit formula. Special Districts Leadership Foundation - District of Distinction Since

24 FY Original June 13, 2018 Page 18 TRANSMITTAL LETTER A breakdown of District staff by division is included in Chart 9 below. See the Organization Chart, Personnel Listing and Department Reporting for additional specifics. Administration (19.5) Community Risk Reduction (16.6) Fire Chief's Office/General Administration Clerk of the Board Human Resources Finance Support Services CRR Administration Community Compliance & Development Community Preparedness Emergency Services (107.2) ES Administration Training & Safety EMS Services/Fire Suppression Chart 9 FUND BALANCE This balanced budget allows the District to maintain a total Fund balance at June 30, 2019 of about $24.5 million, with about $19.4 million unrestricted, and the balance in restricted funds in the Section 115 Retirement Trust, held exclusively for the funding of pension obligations, I am pleased that the District is in a position to make this important and substantial long-term commitment toward the effective management of pension liabilities. Special Districts Leadership Foundation - District of Distinction Since

25 FY Original June 13, 2018 Page 19 TRANSMITTAL LETTER CONCLUSION The FY19 Original presents a healthy, structurally balanced and financially prudent roadmap for next fiscal year. This budget will enable the District to maintain high quality fire and emergency response services, while continuing to place a top priority on the health and safety of the public and our staff. The revenue projections used are achievable and take into consideration a number of variables and uncertainties, while the budgetary expenditures have been thoroughly vetted over a budget development cycle spanning some six months. The District is also committed to good financial stewardship through efficient operational and budget management processes, including cutting costs whenever feasible to do so. The Workshop, as well as the various other public meetings and working sessions outlined in the Calendar have provided ample opportunity for staff, public and Board input regarding the FY19. Thanks to the cities of Chino and Chino Hills, and the County of San Bernardino for their continuing support of and public safety partnership with the District. A special thank you to the Board of Directors for the direction, support and leadership you ve provided to the District. Thanks as well to the taxpaying public, our residents and area businesses for their cooperation, support and partnership in making the Chino Valley an outstanding community to live, work and play. My appreciation is also extended to all staff for their ongoing dedication and commitment to serving our community. Sincerely, Tim Shackelford Fire Chief Special Districts Leadership Foundation - District of Distinction Since

26 CHINO VALLEY FIRE DISTRICT CSMFO Award The California Society of Municipal Finance Officers (CSMFO) presented an Operating Excellence Award for the Fiscal Year to the District. In order to receive this award, an agency must meet stringent criteria established by CSMFO for California local government operating budget documents. This award is valid for a period of one year only. The District is confident that its Fiscal Year document continues to conform to program requirements and will be submitted to CSMFO for award consideration this fiscal year. 20 Back to TOC

27 GFOA Award Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Presentation Award to the District for its Annual for the fiscal year beginning July 1, In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 21

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30 MISSION The mission of the Chino Valley Fire District is to provide exceptional service and safeguard the community. VISION As an organization, we seek excellence in everything we do; with innovative practices, training, and equipment. remain transparent; open, honest, and accountable to each other and those we serve. appreciate our members; we attract, retain, and develop future leaders. value the public trust above all else; we are good stewards of our financial resources. endeavor to learn and grow; continuously seeking improvement and embracing change. FAITHFULNESS VALUES We are fully committed, invested and engaged in the communities we serve. INTEGRITY We lead by example, according to the highest ethical and professional standards. RESPECT We treat each other, and those we serve with compassion, dignity, and value. EXCELLENCE CHINO VALLEY FIRE DISTRICT Mission, Vision & Values Policy Statement We are relentless in our pursuit of the highest possible standard of quality. 24

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33 District Overview Although fire protection services in the Chino Valley have existed in various forms since the late 1800 s, the Chino Valley Fire District was formed as a California special district in 1990 through a voter approved initiative, Proposition W, coinciding with the incorporation of the City of Chino Hills. Having recently celebrated its 25-year anniversary, the District provides fire protection and fire prevention services within the Chino Valley, and is governed by a five-member elected Board of Directors. Located in the southwest region of San Bernardino County, the jurisdiction of the District is approximately 80 square miles in size and has an estimated current population of 174, It is estimated that the District population will be over 200,000 within the next 20 years. The Cities of Chino, Chino Hills, and surrounding unincorporated areas are served by the Fire District. District personnel responded to 12,217 emergency incidents in District Map Chino Hills Chino Unincorporated The District is bordered by Los Angeles County to the northwest; Orange County to the southwest; Riverside County to the southeast; the City of Ontario to the northeast and the City of Montclair to the north. The Chino Valley community has a wide variety of development, which creates multiple fire problems. Approximately 48,000 residential units, from large single-family dwellings to apartment units, constitute the largest number of structure fires expected. This is due to the large number of residential units and the lack of ability to regulate fire safety practices in these occupancies. The major portion of emergency medical responses is anticipated to be at residential units. Approximately 17,000 additional residential occupancies are planned for, or are being constructed, through the build-out of the community. Target hazards within the District have been identified. The sites identified as such are considered to pose an extraordinary risk to lives and/or property. Examples of target hazards within the District are a senior residential site which consists of three-story nonsprinklered buildings; a fourstory office building; an outdoor mall; several trucking routes; a public utility center and an airport. 1 Community population statistic does not include the prison populations. City of Chino 88,026; City of Chino Hills 80,676; Unincorporated 6,084. Population estimates are based on information provided by the Department of Finance. 27

34 PAGE 2 DISTRICT OVERVIEW Several facilities, which, based on their operations, are deemed to be target hazards. Fire suppression, emergency medical, rescue and/or hazardous materials response are all services expected to be utilized at one of these locations during an emergency situation. Over 3,400 commercial and industrial occupancies pose another type of fire problem. Current municipal planning projects the number of these occupancies to significantly increase at community build-out. In addition to the potential for large fires in these occupancies, the District expects spills and airborne releases of hazardous materials. Emergency responses for medical emergencies and rescue situations are also anticipated. Multi-story occupancies are currently limited to mid-rise structures, three-story senior housing and a four-story office building. Additional mid-rise buildings are included in community development plans. Multi-story occupancies require an extraordinarily large number of fire ground personnel to control a fire. Mutual aid from neighboring jurisdictions is necessary to control these types of fires. Due to the large number of persons occupying these types of structures, emergency medical responses are expected to be high. There are thirty-four existing public schools in the District, which includes twenty-two elementary, five junior high, six high schools, and one adult school. There are currently forty-four private and pre-schools in the Fire District. These schools are expected to have fire emergencies, as well as a high incidence of emergency medical and rescue service. A general aviation airport owned by the County of San Bernardino lies within the District. This airport had 203,090 aircraft operations for the twelve month period ended July 31, Although the County is responsible for crash-fire-rescue services at the airport, they have no resources assigned there. The District provides structural fire protection and emergency medical services at the airport. Consistent with the level of training and available resources, and in the absence of County fire resources, the District also provides initial response to aircraft incidents. In addition to airport fire and emergency medical needs, hazardous materials incidents are expected to occur at the airport hangar facilities. The wildland urban interface of Chino Hills presents a significant threat for wildfire. Over 14,000 acres of grass, brush and oak trees pose a seasonal fire threat to the residential interface. Over 300 residences are inspected annually, as part of the District s Brush Inspection program, focusing on the removal of flammable vegetation. Agricultural fires in both the cities of Chino Hills and Chino pose a potential threat. Emergency medical and rescue services, as well 28

35 PAGE 3 DISTRICT OVERVIEW as extensive automatic and mutual aid support, respond to incidents occurring in these rural areas, when needed. In June 1990, eighteen homes and one business were destroyed by a 6,600-acre wildfire that resulted in more than $4.8 million dollars in damage. In November 2008, the Freeway Complex Fire destroyed 187 structures while burning 30,305 acres (13,304 acres in Chino Hills and the State Park) causing approximately $16.1 million in damage. Although only one out-building was lost within the District, the potential existed for a devastating event. There are a variety of transportation routes throughout the District, such as railroad routes, two freeways, two highways, congested city streets and rural roads, which provide a diverse and often over-burdened transportation system. These transportation routes are frequently subject to a variety of potentially complex emergency incidents including vehicle accidents, fires, and hazardous materials related incidents, all which require emergency fire, medical and rescue services. Two large flood control channels, subsidiary channels and creeks, and the Prado Reservoir present the potential for water rescue incidents. Disasters experienced by Southern California may include earthquakes, flooding, landslides, fire conflagrations, SERVICE AREA & FIRE STATIONS commercial aviation accidents, terrorism and civil unrest. The District operates seven fire Fire Administration stations and City Center Drive, Chino Hills employs Fire Station 61/Training Center 5078 Schaefer Avenue, Chino 5092 Schaefer Avenue, Chino approximately 143 full-time equivalent Fire Station Butterfield Ranch Road, employees, Chino Hills Fire Station 63 including Kimball Avenue, Chino sworn safety Fire Station Canon Lane, Chino Hills personnel. In Fire Station Ramona Avenue, Chino addition to Fire Station 66 providing fire and Peyton Drive, Chino Hills emergency medical Fire Station Riverside Drive, Chino services within its jurisdiction, the District also provides fire and life safety inspections, community education and community preparedness within the community. 29

36 Board of Directors & District Management Mike Kreeger President John DeMonaco Vice President Sarah Ramos-Evinger Director Ed Gray Director Harvey Luth Director Senior Management Staff Scott Atkinson Deputy Chief Kyle Collins Deputy Chief Mike Faherty Deputy Chief Steve Heide, CPA Finance Director Sandra Heney Clerk of the Board Kristi Kuchwara Human Resources Director Tim Shackelford Fire Chief 30

37 Chino Valley Fire District Clerk of the Board/ Administrative Manager Board of Directors Fire Chief DIVISIONAL LEGEND BLUE - Administration RED - Emergency Services YELLOW - Community Risk Reduction Administrative Secretary - Confidential Office Technician Office Technician Deputy Chief Deputy Chief Deputy Chief Human Resources Director Finance Director Battalion Chief (A Shift) ME61-3 MT61-4 ME62-3 MS62-2 ME63-3 ME64-3 ME65-3 MS65-2 ME66-3 MS66-2 ME67-3 MS67-2 Administrative Secretary (Currently Assigned to Both Divisions) Battalion Chief (B Shift) ME61-3 MT61-4 ME62-3 MS62-2 ME63-3 ME64-3 ME65-3 MS65-2 ME66-3 MS66-2 ME67-3 MS67-2 Battalion Chief (C Shift) ME61-3 MT61-4 ME62-3 MS62-2 ME63-3 ME64-3 ME65-3 MS65-2 ME66-3 MS66-2 ME67-3 MS67-2 Administrative Battalion Chief Administrative Battalion Chief Facilities & Fleet Coordinator Sr. IT Support Analyst Auxiliary Workers (1 FT & 1 PT) Explorers Fire Training Officer/Captain EMS Training Officer/Captain Medical Director (Contract) EMS Nurse Fire Marshal DFM/Community Compliance Administrative Secretary Permit Technician Office Technician Human Resources Specialist - Confidential Human Resources Specialist - Confidential Office Technician (PT) Public Information Officer DFM/Community Development Fire Inspector Fire Inspector Fire Inspector Reserve Inspectors DFM/Community Preparedness Fire Inspector Fire Inspector Payroll Coordinator - Confidential Accountant - Confidential Public Education Specialist (PT) Office Technician 31 Functional reporting as of 2/8/18

38 Chino Valley Fire District Original Personnel Listing Full-Time Equivalents Positions Positions Positions Positions Positions FTE Change FY18 to FY19 Administration Accounting Technician Accountant Administrative Battalion Chief Administrative Secretary ** Auxiliary Worker * Clerk of the Board/Administrative Manager Deputy Chief Facilities & Fleet Coordinator Finance Director Fire Chief Human Resources Director Human Resources Specialist Office Technician Payroll Coordinator Payroll and Benefits Coordinator Receptionist Sr. IT Support Analyst Total Administration Community Risk Reduction Administrative Secretary Deputy Fire Marshal Deputy Chief Fire Inspector * Fire Marshal Office Technician Permit Technician Public Education Specialist Public Information Officer Total Community Risk Reduction Emergency Services Administrative Secretary ** Battalion Chief Battalion Chief/Training & Safety Officer Deputy Chief EMS Coordinator EMS Nurse Fire Captain Fire Captain/EMS Training Officer Fire Captain/Fire Training Officer Fire Engineer Firefighter/Paramedic Office Technician Total Emergency Services (0.5) GRAND TOTAL * Not Fully Funded: 2 Full-Time Fire Inspectors, 0.4 Part-Time Auxiliary Worker ** Reclassification of 0.5 FTE between departments for cost accounting purposes 32

39 Vision Statement Based Goals 1. Seek excellence in everything we do; with innovative practices, training and equipment. 2. Remain transparent at all times; open, honest, and accountable to each other and those we serve. 3. Appreciate our people; attract, retain & develop future leaders. 4. Value public trust above all else; be good stewards of our financial resources. 5. Endeavor to learn and grow; continuously seek improvement & embrace change. 33

40 Departmental Reporting The District is organized into three divisions: Administration, Community Risk Reduction and Emergency Services, with each division containing a number of departments as further detailed below. ADMINISTRATION The Administration division provides general management, support and overhead functions typical of local government. Departments within Administration include: 1. General Administration 2. Finance 3. Human Resources 4. Clerk of the Board 5. Support Services COMMUNITY RISK REDUCTION The Community Risk Reduction (CRR) Division is responsible for maintaining a safe environment in the Chino Valley through a professional balance of education, engineering, community outreach and compliance. This division is organized into three departments to better serve the public: 1. Administration 2. Community Compliance & Development 3. Community Preparedness EMERGENCY SERVICES The Emergency Services (ES) Division is the largest division of the District. Fire personnel in this division are responsible for medical emergency response, fire suppression, rescue activities, and the mitigation of disasters. This division is divided into three departments: 1. Administration 2. Training 3. Suppression Departments are further described below, including Full-Time Equivalent (FTE) personnel, expenditures by major category and departmental goals. 34

41 PAGE 2 DEPARTMENTAL REPORTING Division: 10 Department: 01 Administration ADMINISTRATION The Administration department includes the office of the Fire Chief and related administrative functions of the District. The Fire Chief reports to the District s five-member elected Board of Directors and Board-related costs are also contained in this department. In FY17, the Support Services (SS) department was formed and a number of personnel from Administration were transitioned to the new SS department. FTE PERSONNEL FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Fire Chief Deputy Chief Administrative Secretary Auxiliary Worker Facilities & Fleet Coordinator Office Technician Senior IT Support Analyst Total EXPENDITURES BY MAJOR CATEGORY* FY 2015 FY 2016 FY 2017 FY 2018 BUDGET FY 2019 BUDGET Salaries and benefits $ 946,903 $ 759,159 $ 729,502 $ 696,221 $ 791,881 Services and supplies 1,150,551 1,169, ,636 1,309,489 1,533,733 Capital Outlay 167, , , , ,200 Total $ 2,265,395 $2,787,204 $1,793,637 $2,538,710 $2,438,854 *Expenditure include Board related cost. 35

42 PAGE 3 DEPARTMENTAL REPORTING ADMINISTRATION DEPARTMENT GOALS & OBJECTIVES: 1. Maintain the California Special Districts Association Platinum level accreditation (requires bi-annual reaccreditation); 2. Maintain the California Special Districts Association District Transparency Certificate of Excellence (requires bi-annual renewal); 3. Automate Board member expense statement submission and approval process. ADMINISTRATION DEPT PERFORMANCE MEASURES MEASUREMENT District FY 2017 FY 2018 TARGET Goal # RESULTS ESTIMATE Platinum accreditation #1 Ongoing YES N/A Every (bi-annual) Renewal in other year Transparency Certificate of Excellence (bi-annual) FY19 #2, #3 Ongoing Renewal in FY19 YES N/A Every other year FY 2019 TARGET YES YES Expense statement process #1, #2 6/30/19 N/A New process N/A New process Implement by target date 36

43 PAGE 4 DEPARTMENTAL REPORTING Division: 10 Department: 11 Administration FINANCE The Finance department personnel are responsible for all accounting and finance related functions of the District, including general accounting and financial reporting, accounts receivable and payable, purchasing, budgeting, treasury, payroll, financial planning and analysis. The District does not have an elected treasurer. FTE PERSONNEL FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Finance Director* Accounting Technician Accountant Payroll and Benefits Coordinator Payroll Coordinator Office Technician Total *Title change from Finance Manager in FY EXPENDITURES BY MAJOR CATEGORY FY 2015 FY 2016 FY 2017 FY 2018 BUDGET FY 2019 BUDGET Salaries and benefits $ 434,285 $ 498,130 $ 528,866 $ 581,934 $ 634,405 Services and supplies 46, ,105 69, , ,234 Capital Outlay Total $ 480,455 $ 609,236 $ 598,567 $ 730,723 $ 755,639 37

44 PAGE 5 DEPARTMENTAL REPORTING FINANCE DEPARTMENT GOALS & OBJECTIVES: 1. Publish an annual budget document which meets the requirements of the GFOA awards program; 2. Publish a CAFR which meets the requirements of the GFOA awards program; 3. Utilize newly acquired pension software to analyze retirement costs on a real-time basis; 4. Continue employee development and succession planning efforts. FINANCE DEPT PERFORMANCE MEASURES MEASUREMENT District FY 2017 FY 2018 TARGET Goal # RESULTS ESTIMATE GFOA budget award #1, #2, #4 Ongoing N/A Not YES applied for GFOA CAFR award #1, #2, #4 Ongoing N/A Not N/A Not applied for applied for Pension costing #1, #2, #4 10/1/18 N/A New N/A New software software software Employee development staff training hours application #1, #3, #5 Ongoing N/A Not previously measured application N/A Not previously measured FY 2019 TARGET YES YES Implement by target date 80 hours staff training 38

45 PAGE 6 DEPARTMENTAL REPORTING Division: 10 Department: 12 Administration HUMAN RESOURCES The Human Resources (HR) department is responsible for employee and labor relations, recruitment and retention, benefits management, succession planning and risk management. FTE PERSONNEL FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Human Resource Director* Human Resources Specialist Total *Title change from HR Manager in FY EXPENDITURES BY MAJOR CATEGORY FY 2015 FY 2016 FY 2017 FY 2018 BUDGET FY 2019 BUDGET Salaries and benefits $ 253,389 $ 325,911 $ 408,112 $ 448,810 $ 501,803 Services and supplies 101,967 97,409 95, , ,885 Capital Outlay Total $ 355,356 $ 423,320 $ 503,877 $ 622,445 $ 658,688 39

46 PAGE 7 DEPARTMENTAL REPORTING HR DEPARTMENT GOALS & OBJECTIVES: 1. Support the development of District employees through goals and performance management tools and resources; 2. Increase Risk Management educational and awareness efforts along with compliance expectations; 3. Amend District s Personnel Rules to include legislated and procedural updates. MEASUREMENT NEOGOV s Goal Management Module District-wide workers compensation and liability training Updated Personnel Rules HR DEPT PERFORMANCE MEASURES District FY 2017 FY2018 TARGET Goal # RESULTS TARGET #1, #3, #5 1/1/19 N/A New N/A New Software Software Module Module #4, #5 3/31/19 N/A No prior training facilitated #2, #4 6/30/19 N/A Last updated in FY15/16 N/A No prior training facilitated N/A Last updated in FY15/16 FY 2019 FORECAST Implement by target date Implement training by target date Adopt by target date 40

47 PAGE 8 DEPARTMENTAL REPORTING Division: 10 Department: 13 Administration CLERK OF THE BOARD The Clerk of the Board (COB) department is responsible for public meeting agenda management, records retention, public records requests, elected officials relations, support to the Board of Directors, as well as general office administrative functions and support. The Clerk of the Board/Administrative Manager is a non-elected staff position. FTE PERSONNEL FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Clerk of the Board/Administrative Manager Administrative Secretary Office Technician Receptionist Total EXPENDITURES BY MAJOR CATEGORY FY 2015 FY 2016 FY 2017 FY 2018 BUDGET FY 2019 BUDGET Salaries and benefits $ 287,880 $ 314,024 $ 392,152 $ 440,434 $ 449,848 Services and supplies 5,197 9,910 19,924 34,556 70,580 Capital Outlay Total $ 293,077 $ 323,934 $ 412,076 $ 474,990 $ 520,428 41

48 PAGE 9 DEPARTMENTAL REPORTING COB DEPARTMENT GOALS & OBJECTIVES: 1. Update Conflict of Interest Code; 2. Design workflow and process in preparation for automation of public records requests; 3. Continue employee development and succession planning efforts. MEASUREMENT Conflict of Interest Code Workflow design for public record request automation Employee development staff training hours COB DEPT PERFORMANCE MEASURES District FY 2017 FY 2018 FY 2019 TARGET Goal # RESULTS ESTIMATE TARGET #2, #4 12/31/18 N/A N/A Adopt new Code by target date #1, #2, #5 6/30/19 N/A New N/A New Implement process process by target 1, #3, #5 Ongoing N/A Not previously measured N/A Not previously measured date 80 hours staff training 42

49 PAGE 10 DEPARTMENTAL REPORTING Division: 10 Department: 15 Administration SUPPORT SERVICES The Support Services (SS) department oversees fleet and facilities planning and acquisition, repairs and maintenance, as well as the District s information technology functions. Support Services was started as a new department during FY17. FTE PERSONNEL FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Deputy Chief Administrative Battalion Chief Administrative Secretary Auxiliary Worker Facilities & Fleet Coordinator Senior IT Support Analyst Total FTE transferred to 60-01, Emergency Services Administration, for cost accounting purposes. EXPENDITURES BY MAJOR CATEGORY FY 2015* FY 2016* FY 2017 FY 2018 BUDGET FY 2019 BUDGET Salaries and benefits $ - $ - $ 752,563 $ 780,171 $ 1,645,690 Services and supplies ,920 92,510 71,550 Capital Outlay ,028 35,000 - Total $ 0 $ 0 $ 867,511 $ 907,681 $ 1,717,240 *New cost center in FY17. 43

50 PAGE 11 DEPARTMENTAL REPORTING SS DEPARTMENT GOALS & OBJECTIVES: 1. Review and acknowledge (through documented notes) all Facility, Fleet and IT repair tickets within: A. Two hours during regular business hours B. 16 hours after hours and weekends; 2. Evaluate repair tickets marked as urgent or emergency for proper prioritization. Initiate a repair process for true emergency items within two hours of notification. 3. Review outstanding repair tickets on a weekly basis with personnel providing oversite of the department where the repair ticket originated (Facilities, Fleet or IT). 4. Initiate remarks on status changes (parts ordered, vendor contacted ) to open tickets within 24 hours. 5. Complete the lobby remodel project during FY19. MEASUREMENT Ticket system - remarks Ticket system - time stamps Repair system ticket notes and time stamps Repair system time stamps Completed lobby remodel SS DEPT PERFORMANCE MEASURES District FY 2017 FY 2018 FY 2019 TARGET Goal # RESULTS ESTIMATE TARGET #1, #5 Ongoing No historical No historical Achieve measurement measurement standard 90% of time #1, #5 Ongoing No historical No historical Achieve measurement measurement standard 90% of time #1, #5 Ongoing No historical No historical Achieve measurement measurement standard 85% of time (44 weeks) #1, #5 Ongoing No historical No historical Achieve measurement measurement standard 90% of time #1, #5 12/31/18 N/A N/A Project completed by target date 44

51 PAGE 12 DEPARTMENTAL REPORTING Division: 20 Department: 01 Community Risk Reduction ADMINISTRATION Administration is responsible for the overall management and supervision of the division, providing general support to each department within CRR. DEPT FTE PERSONNEL FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Deputy Chief Fire Marshal Administrative Secretary Total EXPENDITURES BY MAJOR CATEGORY FY 2015 FY 2016 FY 2017 FY 2018 BUDGET FY 2019 BUDGET Salaries and benefits $ 336,393 $ 409,361 $ 478,663 $ 438,642 $ 751,464 Services and supplies 45,734 12,946 35,478 16,200 20,375 Capital Outlay Total $ 382,127 $ 422,308 $ 514,141 $ 454,842 $ 771,839 45

52 PAGE 13 DEPARTMENTAL REPORTING CRR DIVISION GOALS & OBJECTIVES: 1. Implement new collections process on inspection fee billings; 2. Increase and enhance social media outreach/following; 3. Implement electronic plan submittal process; 4. Continue employee development and succession planning efforts. CRR DIVISION PERFORMANCE MEASURES MEASUREMENT District FY 2017 FY 2018 TARGET Goal # RESULTS ESTIMATE Collection process on #1, #4, #5 01/01/19 N/A New N/A New inspection fees process process Social media outreach/ following Electronic plan submittal process Employee development- staff hours of training #2 Ongoing N/A Not previously measured #1, #4, #5 06/30/19 N/A New software application #1, #3, #5 Ongoing N/A Not previously measured N/A Not previously measured N/A New software application N/A Not previously measured FY 2019 TARGET Implement by target date Increase social media followers on all platforms by at least 10% Implement by target date 80 hours staff training 46

53 PAGE 14 DEPARTMENTAL REPORTING Division: 20 Department: 21 Community Risk Reduction COMPLIANCE & DEVELOPMENT Community Compliance and Development is organized as a single department while providing a variety of services. Community Compliance oversees the District s vegetation management program, consisting of bi-annual inspections conducted by fire inspectors to ensure proper clearance of vegetation and other combustible materials. Fire inspectors are also responsible to conduct mandatory occupancy inspections along with targeted inspections to ensure fire code compliance. This includes coordination of engine company inspections. Community Compliance also oversees the District s fire investigation program. Fire investigators are highly trained specialists who use a systematic approach and knowledge of basic fire science to conduct fire investigations. Investigators are also trained to gather evidence for prosecution in the event of arson-related fires. Community Development ensures all new construction in the Chino Valley is code compliant by working with developers prior to building design to ensure code requirements are understood and met. District personnel review plans prior to construction and issue permits for various construction related projects. Once plans are approved and permits have been issued, inspections are conducted to ensure compliance with approved plans, codes, and/or standards. FTE PERSONNEL FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Deputy Fire Marshal Fire Inspector Permit Technician Office Technician Total EXPENDITURES BY MAJOR CATEGORY FY 2015 FY 2016 FY 2017 FY 2018 BUDGET FY 2019 BUDGET Salaries and benefits $ 1,121,052 $ 1,078,127 $ 1,103,200 $ 1,235,923 $ 1,259,873 Services and supplies 77,893 90, , , ,063 Capital Outlay 10, ,900 16,000 Total $1,209,756 $1,168,493 $1,222,394 $1,553,387 $ 1,528,936 47

54 PAGE 15 DEPARTMENTAL REPORTING Division: 20 Department: 22 Community Risk Reduction PREPAREDNESS Community Preparedness empowers the public with knowledge for emergency preparedness. This department also promotes fire and life safety education to all segments of the population and works in partnership with local community groups, volunteer organizations, non-profits, our local schools and community leaders. Preparedness also oversees the Fire District s social media platforms such as Facebook, Instagram, Twitter, and YouTube and is responsible for public and media relations. FTE PERSONNEL FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Deputy Fire Marshal Public Education Specialist Public Information Officer Total EXPENDITURES BY MAJOR CATEGORY FY 2015* FY 2016* FY 2017 FY 2018 BUDGET FY 2019 BUDGET Salaries and benefits $ 174,118 $ 180,031 $ 362,468 $ 389,577 $ 443,423 Services and supplies 13,086 27,792 50, , ,105 Capital Outlay - 28, Total $ 187,204 $ 236,479 $ 413,254 $ 496,230 $ 580,528 *previously budgeted under the Administration Division. 48

55 PAGE 16 DEPARTMENTAL REPORTING Division: 60 Department: 01 Emergency Services ADMINISTRATION Administration is responsible for the overall management and supervision of the division, providing general support to each department within ES. FTE PERSONNEL FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Deputy Chief Administrative Secretary EMS Nurse Total FTE transferred from 60-01, Emergency Services Administration, for cost accounting purposes. 3 Transferred to 60-61, Emergency Services Training, for cost accounting purposes. EXPENDITURES BY MAJOR CATEGORY FY 2015 FY 2016 FY 2017 FY 2018 BUDGET FY 2019 BUDGET Salaries and benefits $ 562,058 $ 1,016,237 $ 641,260 $ 700,170 $ 473,353 Services and supplies 180, ,612 43,345 49,590 44,425 Capital Outlay 434,548-7,377 25,000 - Total $ 1,176,834 $ 1,124,849 $ 691,982 $ 774,760 $ 517,778 49

56 PAGE 17 DEPARTMENTAL REPORTING Division: 60 Department: 61 Emergency Services TRAINING Training combines classroom, computer and hands-on applications for training of ES firefighter personnel. An Emergency Medical Services (EMS) nurse and two training captains provide training and support to District firefighters. Overseen by the District s contracted physician medical director, training staff is responsible for maintaining the EMS program, including training, compliance, quality assurance and patient care reporting. Training is also responsible for community outreach programs which include community CPR and First Care Provider classes. FTE PERSONNEL FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Battalion Chief/ Training & Safety Officer Fire Captain/ EMS Training Officer Fire Captain/ Fire Training Officer Office Technician EMS Nurse Total Transferred from 60-61, Emergency Services Administration, for cost accounting purposes. EXPENDITURES BY MAJOR CATEGORY FY 2015 FY 2016 FY 2017 FY 2018 BUDGET FY 2019 BUDGET Salaries and benefits $ 721,013 $ 566,222 $ 570,290 $ 578,600 $ 841,260 Services and supplies 69,288 52,824 56, , ,920 Capital Outlay 13,759-53,780 10, ,500 Total $ 804,059 $ 619,045 $ 680,413 $ 753,390 $ 1,093,680 50

57 PAGE 18 DEPARTMENTAL REPORTING TRAINING DEPT GOALS & OBJECTIVES: 1. Improve data accuracy rate with epcr and NFIRS reporting. 2. Continue to train personnel and integrate additional equipment to completely buildout the District s Cardiac Care Program with the goal of increasing SCA (Sudden Cardiac Arrest) ROSC (Return of Spontaneous Circulation) rates to at least 50%; 3. Team with Cal Fire to implement and maintain a District Type III Engine off-road driver training program; 4. Team with interested area Fire Department s to implement and maintain EVOC (Emergency Vehicle Operations Course) training for apparatus drivers; 5. Continue employee development and succession planning efforts. TRAINING DEPT PERFORMANCE MEASURES MEASUREMENT District FY 2017 FY 2018 TARGET Goal # RESULTS ESTIMATE epcr and NFIRS Accuracy Reporting Cardiac Care program with 50% ROSC rate goal Type III off-road driving program FY 2019 TARGET #1, #2 6/30/19 N/A Not N/A Not 10% or less previously previously error rate measured measured by target date #1, #5 6/30/19 N/A Not N/A Not 50% ROSC previously previously rate measured measured beginning in calendar 2019 #1, #5 12/1/19 N/A New N/A New Implement by target date EVOC class #1, #5 12/1/19 N/A New N/A New Implement by target date Employee development staff training hours #1, #3, #5 Ongoing N/A Not previously measured N/A Not previously measured 80 hours staff training 51

58 PAGE 19 DEPARTMENTAL REPORTING Division: 60 Department: 62 Emergency Services SUPPRESSION Suppression personnel provide emergency medical care and fire and rescue services, working 24 hours a day, seven days a week, 365 days a year, with the District operating three shifts. The majority of District suppression personnel are state licensed paramedics, enabling the District to maintain the highest level of care and support to the community. District paramedics provide stateof-the-art advanced life support care, including pre-hospital 12-lead ECG s, standing orders for patients with Acute Coronary Syndrome, and transcutaneous cardiac pacing. FTE PERSONNEL FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Battalion Chief EMS Coordinator Fire Captain Fire Engineer Firefighter/ Paramedic Total EXPENDITURES BY MAJOR CATEGORY FY 2015 FY 2016 FY 2017 FY 2018 BUDGET FY 2019 BUDGET Salaries and benefits $20,318,616 $21,618,383 $24,182,870 $25,276,163 $25,961,652 Services and supplies 2,794,698 2,823,738 3,038,576 3,509,506 4,039,494 Capital Outlay 791,556 1,915,578 2,049, ,426 1,264,634 Total $23,904,870 $26,357,698 $29,271,009 $29,615,095 $31,265,780 52

59 PAGE 20 DEPARTMENTAL REPORTING ES SUPPRESSION DEPARTMENT GOALS & OBJECTIVES: 1. Improve Emergency Response Times A. Implement Automatic Vehicle Location (AVL) Technology B. Adopt two-minute turnout time objective time period from dispatch of call to the beginning point of travel time to incident should be two minutes or less 2. Improve the Delivery of Emergency Medical Services A. Increase ST Elevation Myocardial Infarction (STEMI) field recognition by 30% to reduce the cardiac arrests B. Develop and implement an air ambulance program 3. Improve Fire Suppression Services A. Create a standard for after action reports for significant incidents B. Provide command level training to strengthen incident command capabilities SUPPRESSION DEPT PERFORMANCE MEASURES MEASUREMENT District FY 2017 FY 2018 TARGET Goal # RESULTS ESTIMATE Implement AVL #1, #3, #5 6/30/19 N/A New N/A New technology Program Program New standard for engine company turnout times ST Elevation Myocardial Infarction (STEMI) field recognition Air ambulance program Standard for afteraction reports for significant incidents Command level training #1, #2, #4, #5 Ongoing 75% of current 90 second standard #1, #5 Ongoing N/A Not previously measured #1, #4, #5 6/30/19 N/A New Program #1 6/30/19 N/A New Report #1, #5 6/30/19 N/A New Program 72% of current 90 second standard N/A Not previously measured N/A New Program N/A New Report N/A New Program FY 2019 TARGET Implement by target date Achieve new 2:00 standard 95% of time Increase recognition by 30% Implement by target date Implement standard reporting by target date 40 hours staff training 53

60 Account Code Structure ACCOUNT CODE STRUCTURE Division Department Administration Admin Administration Finance Administration Human Resources Administration Clerk of the Board Administration Support Services Community Risk Reduction Admin Community Risk Reduction Compliance & Development Community Risk Reduction Preparedness Emergency Services Admin Emergency Services Training Emergency Services Suppression FUND DIVISION DEPARTMENT PROJECT ACCOUNT Example: (General Fund) (Emergency Services) (Suppression) (Unspecified) (Clothing) Fund (this field will always be 100) Division (10=Administration, 20=Community Risk Reduction, 60=Emergency Services) Department (varies within Division) Project (This field will generally be 000, but may be used to track grants, project accounting, etal., as 001, 002, etc.) Account (defines the expense type - see attached list of common accounts) 54

61 PAGE 2 ACCOUNT CODE STRUCTURE Common Accounts 6035 Coverage training and support 6350 Tuition reimbursement 7025 Clothing 7035 Telephone 7042 Cellular phones 7043 Electronic equipment maintenance 7070 Food 7075 Memberships 7080 Publications 7085 Legal postings 7120 Small tools and equipment 7125 Inventory equipment 7130 Non-inventory equipment 7135 Public education expenses 7140 Training 7180 Utilities 7250 General liability insurance 7305 Office supplies 7310 Postage 7323 Printing 7405 Services auditing 7415 Services county 7440 Services legal 7445 Services dispatch 7450 Services other 7515 Kitchen and dining expense 7525 Laundry and dry cleaning expense 7535 General household expense 7540 Medical supplies 7550 Vehicle maintenance 7555 Equipment maintenance 7560 Fuel 7570 Structure maintenance 7597 Structure rent/lease 8830 CAPITAL Structure Improvement 8840 CAPITAL Equipment 8850 CAPITAL Vehicles 55

62 District Facilities The District currently operates seven fire stations and various other special purpose facilities. The District s long-term master plan projects the operational need for two to three additional fire stations at community build-out over the next two to three decades. Historically, the cities of Chino and Chino Hills have been financially responsible for the building of District fire stations within each respective city s boundaries. The District is in the early stages of discussion with the City of Chino Hills regarding the location for Fire Station 68 in Chino Hills. The fire stations and the Training Center located in Chino are leased by the District from the City of Chino. All other facilities are District owned. Facility Fire Administration Address City Center Drive Chino Hills Fire Station Schaefer Avenue Chino Fire Station Butterfield Ranch Road Chino Hills 56

63 PAGE 2 DISTRICT FACILITIES Fire Station Kimball Avenue Chino Fire Station Canon Lane Chino Hills Fire Station Ramona Avenue Chino Fire Station Peyton Drive Chino Hills Fire Station Riverside Drive Chino 57

64 PAGE 3 DISTRICT FACILITIES Fleet Maintenance 5076 Carter Street Chino Training Center 5092 Schaefer Avenue Chino Training Tower (Located on the Training Center grounds in Chino) CVFD Classrooms (Old Training Center) 4040 Eucalyptus Avenue Chino 58

65 MAP A. Station 5 Medic Engine Medic Squad Station 7 Medic Engine Medic Squad Chino Valley Fire District Current Facilities and Staffed Apparatus Station 6 Medic Engine Medic Squad CVFD Maintenance Facility CVFD Administration CVFD Classroom Station 1 Medic Engine Medic Truck Haz Mat USAR CVFD Training Center Station 3 Medic Engine Station 4 Medic Engine Station 2 Medic Engine Medic Squad LEGEND Fire Stations Other CVFD Facilities Chino Hills State Park City of Chino City of Chino Hills Unincorporated Areas 59 Path: I:\Exhibits & Projects\Fire Zone Map\Map A\MAP A.mxd

66 Calendar DATE December 15, 2017 January 26, 2018 February 23 March 23 ACTIVITY Kick-Off Completed Requests to BCs & DFMs Input Due to Deputy Chiefs & Managers Input Due to Finance Department April 5 Joint Management Review #1 April 19 Final Management Review #2 May 16 May 30 June 13 Draft to Board Workshop Original Adoption February 13, 2019 Mid-Year (Amended) Adoption Note: Board to receive at least two weeks in advance of Workshop. 3/28/18 60

67 ary Practices & Financial Policies BASIS OF BUDGETING & ACCOUNTING The District s financial records are maintained in accordance with accounting principles generally accepted in the United States of America (GAAP), as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for governmental accounting and financial reporting principles. The District s Comprehensive Annual Financial Report (CAFR) contains both government-wide financial statements prepared on the accrual basis of accounting, as well as governmental fund financial statements prepared on modified accrual basis. As a single purpose fire authority, the District maintains one governmental fund: the General fund. The District reports all of its unrestricted financial and budgetary activities within the General fund. ed and actual revenues and expenses reported in this document are accounted for on a spending or current financial resources measurement focus (i.e. modified accrual). Revenues are recognized in the accounting period in which they become susceptible to accrual; that is, when they become measurable and available to finance expenditures of the current period. Measurable means that the amount of the transaction can be determined, and available means collectible within the current period or soon thereafter to be used to pay liabilities of the current period. Accrued revenues include property taxes received within 60 days after fiscal year-end and earnings on investments paid after year-end. Expenditures are recorded when the liability is incurred, if measurable, except for unmatured interest on long-term debt, if applicable, which is recognized when due. BUDGET CONTROL AND AMENDMENT The Fire Chief is ultimately responsible for ensuring expenses are within budget allocations and may adopt budget policies necessary to carry out that responsibility within his authority. Except in prescribed emergencies, no expenditure of funds shall be authorized unless sufficient funds have been appropriated by the Board of Directors as set forth in this budget. As outlined in the Calendar, the District has two distinct formal budgetary review and approval cycles: Original and Mid- Year (Amended). The Original incorporates the preliminary and final budget cycles into a single consolidated budget cycle with adoption in the June timeframe. Formal District budgets are approved after the holding of a public hearing and provide for the general operation of the District. These budgets include the proposed expenditures of the District and the means of financing them. As further outlined below, the process of budget development spans some six months, and includes multiple levels of reviews, meetings, discussions and analysis 61

68 PAGE 2 BUDGETARY PRACTICES & FINANCIAL POLICIES The Board approves total budgeted appropriations and any necessary amendments throughout the year. Formal budgetary integration at the fund level is employed as a management control device to monitor budget-to-actual performance throughout the fiscal year. Publicly available monthly budget-to-actual financial reports are prepared and are formally presented at regular meeting of the District s Board of Directors. s are adopted on a basis consistent with GAAP. OVERVIEW OF BUDGET DEVELOPMENT PROCESS The fiscal year budget development process officially kicks off in mid-december. Thereafter, a summary of the process is as follows (all timeframes are approximate): December 15 (2017) guidelines issued to all personnel; December through February (2018) requests developed and submitted through supervisors to department managers; March Managerial review; development of budgetary revenue estimates; initial draft budget entered into enterprise resource planning (ERP) computer system; April Multiple management team budget reviews; May Draft Original disseminated to Board of Directors and available for public review/inspection; public budget workshop held; June Board adopts Original ; February (2019) Mid-Year (Amended) adopted, as adjusted. 62

69 PAGE 3 BUDGETARY PRACTICES & FINANCIAL POLICIES ALLOCATION OF COSTS The cost of operating expenses, including employee wages and benefits, are generally recorded to each benefitting division and department based on actual expenses as tracked by the District s ERP computer system. When applicable, certain administrative and other operating costs benefitting multiple divisions and departments are allocated proportionately on the basis of budgeted direct labor costs, as appropriate, as follows: Post-retirement benefit costs are allocated on the basis of direct budgeted base salaries; Unfunded Actuarial Liability pension costs are allocated on the basis of budgeted retirement system normal cost retirement expense. The District has an indirect cost (overhead) allocation plan established in compliance with the Office of Management and Circular A-87. The cost plan is applied to overhead rates for applicable grant management purposes as well as for certain reimbursable federal and state billings for mutual aid fire services provided by the District. The cost plan is updated annually. CAPITAL ASSETS & CAPITAL REPLACEMENT PLAN Capital assets are defined in District policy as all land, buildings, vehicles, computers, equipment and improvements with an individual cost of at least $5,000 and a useful life beyond one year. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Depreciation is calculated on a straight-line basis over the estimated useful life of the respective asset in periods ranging from five to 30 years depending on the asset classification. 63

70 PAGE 4 BUDGETARY PRACTICES & FINANCIAL POLICIES For budgetary purposes, the purchase of a capital asset is also referred to as capital outlay. The District maintains a capital replacement plan providing for planned capital outlay over the next thirty years. In accordance with the District s Fund balance policy, capital equipment replacement is funded through a commitment of Fund balance. It is anticipated that equipment replacement funds will generally be sufficient to provide for funding of future capital outlay. At June 30, 2019, the committed portion of fund balance earmarked for equipment replacement is projected to be roughly $931,000. RETIREMENT FUNDING POLICY The District established an irrevocable single employer Internal Revenue Service Code Section 115 Retirement Trust (Retirement Trust) through PFM Asset Management, LLC (PFM) in FY17, initially contributing $5 million to the Retirement Trust from District reserves. In conjunction with the adoption of the Retirement Trust, the District s Board of Directors also adopted a policy to commit up to one-third (1/3) of excess revenues on an annual basis to reduce District pension liabilities going forward. Excess revenues earmarked at the end of each fiscal year for accelerated pension funding will be contributed to either the Retirement Trust, directly to the California Public Employees Retirement System (CalPERS) on behalf of the District s employees, or in combination to these two funding vehicles, as determined annually by the Board. Contributions will be made in the following fiscal year after completion of the District s annual audit. Based on the FY19, approximately $104,000 is projected to be available for accelerated pension funding in FY20. As an irrevocable trust, funds accumulated in the Retirement Trust are legally restricted for use only to pay for qualified pension-related expenses. The District generally intends to utilize the Retirement Trust funds for budget stabilization purposes, drawing from the Retirement Trust to fund pension obligations during years of significant budgetary constraint or fiscal emergency, or as otherwise determined by the Board. Over time, the District anticipates continuing to fund and grow the balance in the Retirement Trust, while identifying strategic opportunities to use accumulated funds and one-time revenues to reduce pension liabilities through additional discretionary payments to CalPERS. 64

71 PAGE 5 BUDGETARY PRACTICES & FINANCIAL POLICIES USE OF ESTIMATES The District prepares its budgets based on estimates, forecasts and projections. In certain cases, estimates and assumptions are also used to report actual financial results and disclosures. Accordingly, actual results could differ from these estimates. Because of the inexact nature of budget estimates, the District budgets revenues realistically yet conservatively, in an effort to ensure an achievable balanced budget. The multiple budgetary review and approval cycles identified above provide ample opportunity to amend the budget, if and when appropriate. DEBT OBLIGATIONS The District does not currently have any debt on the books, nor does the District contemplate any borrowings or debt issuance in the near future. As the District s partner cities are financially responsible for building fire stations and providing initial station apparatus, the District s financial commitments are generally operational in nature. Accordingly, there is no provision for debt obligation included in the FY19 budget. LONG-RANGE FINANCIAL PLANNING In conjunction with its annual budget development process, the District prepares a 10-year long-range financial plan (LRFP). The District forecasts revenues and expenditures over the 10-year horizon based on a combination of historical averages, current budget and known and anticipated future budgetary impacts. These projections are used for financial, operating and strategic planning purposes. The 10-year LRFP revenue projections are achievable yet conservative in nature, and expenditures are realistically forecast, based on the best available information available to the District at the time. Over the 10-year projection period, annual revenues are generally projected to be sufficient to cover expenditures. In certain years, it may be necessary to utilize Fund balance to cover one-time deficits, in particular during the initial year or two after a new fire station opening. The current LRFP assumes Station 68 coming online in FY21 and Station 69 being staffed beginning in FY25. 65

72 PAGE 6 BUDGETARY PRACTICES & FINANCIAL POLICIES Property tax-related revenue assumptions are a critical aspect of the LRFP, since this revenue stream historically represent in excess of 90% over District revenues. The District works closely with its contracted property tax consultant to perform property tax allocation audits, trends analysis and tax increment verification. Property tax analysis includes: Historical review and trend analysis; Projected fiscal impacts of ongoing and planned local real estate development; Assessments of general economic conditions on the local and regional economies and its related impact on tax assessed property values; Monitoring of business activities of principal property taxpayers within the District s jurisdiction; Ongoing analysis of local property resales; Monitoring of the fiscal impact of county assessor temporary reassessments of property values during period of declining real estate values. As salaries and benefits generally represent in excess of 80% of the District s annual expenditures, labor-related costs represent the most significant expenditure projection in the District s LRFP. Trend analysis, impacts of known future labor agreement commitments and detailed multi-year projections of District pension costs factor prominently into the forecast of salaries and benefits. In addition, capital outlay expenditure projections in the LRFP are based on anticipated replacement of major capital purchases in accordance with the District s capital replacement schedule. 66

73 Report Descriptions The descriptions below are intended to provide the reader of this budget document with a brief explanation regarding the nature of each report and the information intended to be conveyed to the reader. The reports are listed in the order in which they appear in this budget document. 1. Summary Summarizes budgetary totals at the highest level. Includes both operating and capital replacement activities. 2. Summary - Multi-Year Comparison Summary budget totals for proposed budget in comparison to the three preceding years. 3. Changes in Fund Balance Two-year presentation of changes in components (classifications) of the District s fund balance. Fund balance represents the difference between the District s General fund assets and liabilities. 4. Revenue History District-wide revenues by account, in a multi-period reporting format. For reporting purposes, the District classifies revenues into three major categories: property tax revenue, contract revenue, and all other revenue. 5. Expenditure History District-wide expenditures by account, in a multi-period reporting format. The District classifies expenditures into three major categories: salaries and benefits, services and supplies, and capital outlay. 6. Divisional Expenditure History Expenditures by division, by account, in a multi-period reporting format. The District maintains three divisions: administration, community risk reduction and emergency services. This report follows the same format as the Expenditure History report, but provides information on a divisional basis. This report is a more detailed version of the Expenditure History report. 7. Year-Over-Year Comparisons Comparison of prior year amended summary budget to current year budget, including variance amounts and percentage changes between years. 8. ed Expenditures Variance Report Comments on significant variances between prior year amended budget and current year budget, by line item. 9. Capital Replacement Funds Identifies those budgeted capital outlay expenditures which are funded through the equipment replacement fund component of committed fund balance. This report also identifies those capital outlay expenditures, if any, which are being rolled over from the prior fiscal year. 67

74 PAGE 2 BUDGET REPORT DESCRIPTIONS 10. Long-Range Financial Plan A 10-year fiscal outlook, or financial projection, for the District. Projects revenues and expenditures over a 10-year period based on the current budget, assumptions consistent with the District s Master Plan, District goals, capital outlay plans, and other planning documents, as well as known and anticipated changes with potential fiscal impact to the District. This reference document is highly dynamic in nature. Although the Plan is likely to be less accurate for each successive year within the 10-year projection period, the document provides a roadmap for discussion and planning purposes for the District. 11. Multi-Year Trend Reports & Graphs Tabular financial and graphical information intended to convey the general direction of certain key fiscal indicators over time. 12. Glossary of Terms Definition of the various terms listed in budgetary documents. 13. Glossary of Acronyms Definition of the various acronyms (abbreviated terms) listed in budgetary documents. 68

75 BUDGET SUMMARY INFORMATION 69

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77 Fund: 100 General Fund CHINO VALLEY FIRE DISTRICT Summary Original Operating Capital Replacement TOTALS Revenue $ 42,164,595 $ - $ 42,164,595 Expenditures Salaries and benefits $ 33,754,652 $ 33,754, Services and supplies 6,585,404 6,585, Capital outlay 781,474 $ 727,860 1,509,334 Prior Year Encumbrance Rollovers - - Total Expenditures $ 41,121,530 $ 727,860 $ 41,849,390 Transfers In From Equipment Replacement Fund $ 727,860 $ 727,860 Net Revenue From Operations $ 1,043,065 $ - $ 1,043,065 71

78 2015 Actual Amount CHINO VALLEY FIRE DISTRICT Summary - Multi-Year Comparison Original 2016 Actual Amount 2017 Actual Amount 2018 Amended 2019 Original Fund: 100 General Fund Revenue Property tax revenue $ 24,510,535 $ 24,767,156 $ 26,657,136 $ 27,735,207 $ 30,456, Contract revenue 6,360,189 8,156,437 8,318,788 9,641,601 9,718, Other revenue 1,644,902 1,935,787 1,862,436 1,979,000 1,989,000 Prior Year Encumbrance Rollovers 473, Revenue Totals $ 32,989,278 $ 34,859,380 $ 36,838,360 $ 39,355,808 $ 42,164,595 Expenditures Salaries and benefits $ 25,155,706 $ 26,765,586 $ 30,149,946 $ 31,566,645 $ 33,754, Services and supplies 4,327,529 4,429,801 4,551,669 5,822,282 6,585, Capital outlay 984,067 2,488,765 2,267,244 1,533,326 1,509,334 Prior Year Encumbrance Rollovers (net) 591, ,414 - Expenditure Totals $ 31,059,133 $ 34,072,566 $ 36,968,859 $ 38,922,253 $ 41,849,390 Net Change in Fund Balance $ 1,930,145 $ 786,814 $ (130,499) $ 433,555 $ 315,205 Transfers In - Capital Replacement $ 271,708 $ 1,655,948 $ 1,896,877 $ 421,100 $ 727,860 Net Operating Revenue $ 2,201,853 $ 2,442,762 $ 1,766,378 $ 854,655 $ 1,043,065 Note: Totals exclude restricted 115 Trust activities 72

79 Fund Balance Reporting Policy The Fire District s Fund Balance Reporting Policy was developed in conjunction with the Government Accounting Standards Board (GASB) Statement No. 54. The District has adopted a Board resolution that sets forth certain classifications of fund balance, as well as a minimum fund balance policy. Classifications of fund balance maintained by the District as per policy are set forth as follows: NONSPENDABLE - Not available for other purposes because these funds are inherently nonspendable, i.e. not in spendable form. Examples include prepaids and deposits on file with other agencies. RESTRICTED - Externally enforceable limitations on use, imposed by law or constraints by creditors, grantors or contributors. Examples might include funds held in an irrevocable trust for specific purposes, grant funds received for the express purpose of purchasing specific supplies or equipment, or debt covenants imposed by creditors. The District s 115 Retirement Trust balances are restricted funds which must be used to pay retirement obligations. COMMITTED - Pursuant to constraints imposed by Board resolution, committed amounts cannot be use for any purpose other than specified in the resolution, unless the Board removes or changes the specific use through resolution or ordinance. Commitments of fund balance have been set forth by Board resolution as follows: 1. Worker s Compensation Reserve Fund Established at a level equal to the total estimated value of all open claims and an estimated value of incurred but not reported claims at the end of each fiscal year. Funds from this account will be drawn-down to pay significant expenses against a particular workers compensation claim file such as a single invoice in excess of $50,000 and/or a lump sum payment when a claim is closed by way of Compromise and Release. 2. Equipment Replacement Fund Provides for vehicle, apparatus and major equipment replacement. Funded through the accumulation of depreciation and amortization of capital assets in the fund. Monies shall be withdrawn for the purchase of equipment replacement items. 3. Facilities Acquisition and Maintenance Fund Derived from proceeds from the sale of District property, with annual fund adjustments of a 3% inflation factor. Designated for future facility acquisition, maintenance and repair. 4. Compensated Absences Fund Established at a level equal to 33% of employee accrued leave balances. Funds from this account will be drawn-down to pay-off accrued leave balance(s) due to an employee upon separation when the value of the leave accruals for a specific employee is $50,000 or above. 73

80 PAGE 2 FUND BALANCE REPORTING POLICY 5. Emergency Contingency Fund Established at a level equal to two (2) months of the District s approved expenditure budget. Funds may be utilized for emergency operating purposes in the event of the declaration of a local, state or federal state of emergency. ASSIGNED Amounts that are constrained by the District s intent to be used for specific purposes, but are neither restricted nor committed. Examples of assigned fund balance include: 1. Continuing Appropriations Balance of multi-year funding requirements for approved projects or other expenditures. 2. Transfers for Revenue Shortfalls Amount to be transferred from fund balance to cover a projected budget deficit, if applicable, in the following fiscal year. 3. Funds Earmarked for Reduction of Pension Liabilities As per policy, up to one-third (1/3) of excess revenues on an annual basis shall be earmarked for further reduction of pension liabilities. If applicable, this amount shall be established at fiscal year-end for funding in the following fiscal year. UNASSIGNED Excess amounts not otherwise classified, to include: 1. Minimum Fund Balance As per policy, the District maintains a general contingency reserve fund equal to three (3) months of the District s approved expenditure budget. In the event that Unassigned fund balance is not sufficient to meet the three month minimum, the remaining balance of funds not otherwise classified shall be maintained in this account. 2. All Other All other funds not otherwise classified. 74

81 Nonspendable: CHINO VALLEY FIRE DISTRICT Changes in Fund Balance Original AMENDED BUDGET Fund Balance Fund Balance Revenues Expenditures Transfers Deposits and Prepaid Items $ 129,796 $ - $ 129,796 Restricted: Section 115 Trust 5,072,747-5,072,747 Committed: Workers' Comp Reserve 1,304,088-1,304,088 Equipment Replacement 439, ,792 1,314,242 Facility Acquisition & Maintenance 48,406 1,452 49,858 Compensated Absences 1,963,360 58,901 2,022,261 Emergency Contingency 7,045,177 (558,135) 6,487,042 Assigned: - Transfers & Pension Funding Unassigned: Minimum Fund Balance 7,730,326 56,546 7,786,872 Available - $ 39,355,808 $ 38,922,253 (433,555) - TOTAL $ 23,733,350 $ 39,355,808 $ 38,922,253 $ - $ 24,166,905 Nonspendable: ORIGINAL BUDGET Fund Balance Fund Balance Revenues Expenditures Transfers Deposits and Prepaid Items $ 129,796 $ - $ 129,796 Restricted: Section 115 Trust 5,072,747-5,072,747 Committed: Workers' Comp Reserve 1,304,088-1,304,088 Equipment Replacement 1,314,242 (383,536) 930,706 Facility Acquisition & Maintenance 49,858 1,496 51,354 Compensated Absences 2,022,261 60,668 2,082,929 Emergency Contingency 6,487, ,856 6,974,898 Assigned: Transfers & Pension Funding - 104, ,018 Unassigned: Minimum Fund Balance 7,786,872 (44,703) 7,831,574 Available - 42,164,595 41,849,390 (225,799) - TOTAL $ 24,166,905 $ 42,164,595 $ 41,849,390 $ - $ 24,482,110 75

82 10-Year Trend in Fund Balance Summary by Classification FOR THE FISCAL YEARS ENDING JUNE 30, 25,000,000 20,000,000 15,000,000 10,000,000 5,000, Nonspendable Restricted Committed Assigned Unassigned Note: Fund balance classification for FY10 restated for consistency with GASB Statement No. 54. In FY12, the District paid off its CalPERS Retirement Side Fund obligations amounting to approximately $4.75 million. In FY17, $5 million was contributed to a Section 115 retirement trust which is classified as restricted funds. 76

83 10-Year Trend in Fund Balance Detail for All Classifications FOR THE FISCAL YEARS ENDING JUNE 30, 25,000,000 20,000,000 15,000,000 10,000,000 5,000, Nonspendable - Deposits Committed - Worker's Compensation Reserve Committed - Facility Acquisition & Maintenance Committed - Emergency Contingency Unassigned - Minimum Fund Balance Restricted Trust Committed - Equipment Replacement Committed - Compensated Absences Assigned Unassigned - All Other Note Fund balance classification for FY10 restated for consistency with GASB Statement No. 54. In FY12, the District paid off its CalPERS Retirement Side Fund obligations amounting to approximately $4.75 million. In FY17, $5 million was contributed to a Section 115 retirement trust which is classified as restricted funds. 77

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85 BUDGET DETAIL INFORMATION 79

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87 Revenue History Original 2018 Amended 2019 Original Account NuDescription 2015 Actual Amount 2016 Actual Amount 2017 Actual Amount Fund: General Fund Revenues Property tax revenue 4010 Property tax - current secured $ 21,646,149 $ 21,783,913 $ 23,525,049 $ 24,600,016 $ 27,413, Property tax - current unsecured 1,243,042 1,240,389 1,150,741 1,263,286 1,215, Property tax - current utility 212, , , , , Property tax - prior and penalty 828, , , , , Property tax - home owner's exemption 248, , , , , Property tax - supplemental 277, , , , , Property tax - weed abatement 54,381 51,347 52,867 60,000 60,000 Account Classification Total: Property tax revenue $ 24,510,535 $ 24,767,156 $ 26,657,136 $ 27,735,207 $ 30,456, Contract revenue 4110 Current services $ 6,360,189 $ 8,156,437 $ 8,318,788 $ 9,641,601 $ 9,718,853 Account Classification Total: Contract revenue $ 6,360,189 $ 8,156,437 $ 8,318,788 $ 9,641,601 $ 9,718, Other revenue 4200 Permit and inspection fees $ 802,880 $ 700,811 $ 760,409 $ 900,000 $ 1,200, Weed abatement 19,697 10,753 31,130 20,000 20, Other sales 1,864 2,200 2,475 3,000 3, Other revenue 189, , ,744 75, , Mutual aid recoveries 401, , , , , Grants 74,005 35,423 30,397 30,000 30, Sale of fixed assets - 31,000 2, Donations 1,000 1,000-1,000 1, Interest revenue 154, , , , ,000 Account Classification Total: Other revenue $ 1,644,902 $ 1,935,787 $ 1,862,436 $ 1,979,000 $ 1,989,000 Prior Year Encumbrance Rollovers 4200P - Other revenue 4225 Grants $ 473,652 $ - $ - $ - $ - Prior Year Encumbrance Rollovers $ 473,652 $ - $ - $ - $ - Revenues Total Note: Totals exclude restricted 115 Trust activities $ 32,989,278 $ 34,859,380 $ 36,838,360 $ 39,355,808 $ 42,164,595 81

88 2015 Actual Amount CHINO VALLEY FIRE DISTRICT Expenditure History Original 2016 Actual Amount 2017 Actual Amount 2018 Amended 2019 Original Fund: General Fund Expenditures Salaries and benefits 6010 Salaries regular $ 12,401,096 $ 13,604,856 $ 14,672,732 $ 15,509,684 $ 17,610, Salaries - part time 72,158 84,649 97, , , Uniform allowance 43,508 39,799 45,001 45,982 47, Coverage - training and support 317, , , , , Coverage - emergency response and leave 3,742,254 3,990,535 4,677,292 4,870,640 3,318, Coverage - worker's compensation 237, , , , , Call back or standby 6,675 8,194 9,074 9,490 9, Separation payments 100,221 19, ,440 82, , Special compensation 610, , , , , Annual leave buyback 292, , , , , PERS retirement 3,955,642 4,104,162 4,283,042 5,017,763 5,436, Survivor's benefits 10,226 8,488 10,050 10,416 10, Long term disability 13,604 17,021 19,147 23,875 26, Unemployment insurance 25,328 25,527 21,244 20,433 17, Health and dental insurance 2,201,718 2,425,680 2,535,984 2,745,817 3,123, Social security medicare 241, , , , , State disability insurance 16,069 18,720 21,908 21,059 25, Worker's compensation expense 719, , , , , Life insurance 73,134 77,567 76,571 78,297 83, Deferred comp benefit 60,165 62,736 66,182 66, , Tuition reimbursement 15,993 11,773 19,724 23,200 62,500 Account Classification Total: Salaries and benefits $ 25,155,706 $ 26,765,586 $ 30,149,946 $ 31,566,645 $ 33,754, Services and supplies 7025 Clothing $ 134,076 $ 76,009 $ 168,652 $ 132,090 $ 647, Telephone 219, , , , , Cellular phones 35,480 45,232 47,178 54,960 53, Electronic equipment maintenance 211, , , , , Food 4,505 12,966 11,208 18,900 16, Memberships 15,506 15,406 17,810 27,513 30, Publications 5,454 6,699 6,463 12,207 9, Legal postings 2,580 1,217 2,208 5,500 5, Small tools and equipment 87, , , , , Inventory equipment 27,890 82,363 58,335 79,657 68, Non-inventory equipment 222, , , , , Special department expenses 24,610 67,061 58,525 89,838 85, Training 103, , , , , Utilities 265, , , , , General liability insurance 117, , , , , Office supplies 30,960 27,559 40,727 59,000 47, Postage 9,356 9,292 9,721 11,000 11, Printing 15,078 11,050 10,386 30,600 37, Services - auditing 11,120 23,020 17,520 17,000 18, County services 227, , , , , Services - legal 156, ,846 76, , , Services - dispatch 534, , , , , Services - other 970, , ,073 1,110,600 1,120, General household expense 29,183 29,429 38,230 36,000 38, Medical supplies 68,715 76,556 88,622 95, , Vehicle maintenance 400, , , , , Equipment maintenance 54,499 63,775 65, , , Fuel 122, , , , , Structure maintenance 199, , , , , Structure rent/lease 18,840 18,936 3, Account Classification Total: Services and supplies $ 4,327,529 $ 4,429,801 $ 4,551,669 $ 5,822,282 $ 6,585,404 82

89 2015 Actual Amount CHINO VALLEY FIRE DISTRICT Expenditure History Original 2016 Actual Amount 2017 Actual Amount 2018 Amended 2019 Original Capital outlay 8805 Capital - land $ - $ 675,000 $ - $ - $ Capital - structure improvements 56,041 1,379,117 8, ,000 88, Capital - equipment 371, , , , , Capital - vehicles 378, ,707 2,019, , , Capital - lease purchase equipment 177,447 (402,372) Account Classification Total: Capital outlay $ 984,067 $ 2,488,765 $ 2,267,244 $ 1,533,326 $ 1,509,334 Expenditures Total $ 30,467,302 $ 33,684,152 $ 36,968,859 $ 38,922,253 $ 41,849,390 Prior Year Encumbrance Rollovers 7000P - Services and supplies 7125 Inventory equipment $ 157,283 $ Non-inventory equipment - 61, Medical supplies - 12, P - Capital outlay 8840 Capital - equipment 434, Capital - vehicles - 313,665 Prior Year Encumbrance Rollovers $ 591,831 $ 388,414 $ - $ - $ - Adjusted Expenditures Total $ 31,059,133 $ 34,072,566 $ 36,968,859 $ 38,922,253 $ 41,849,390 Note: Totals exclude restricted 115 Trust activities 83

90 2015 Actual Amount 2016 Actual Amount CHINO VALLEY FIRE DISTRICT Divisional Expenditure History Original 2017 Actual Amount 2018 Amended 2019 Original Fund: General Fund Expenditures Division: 10 - Administration Salaries and benefits 6010 Salaries regular $ 1,029,757 $ 1,282,488 $ 1,776,869 $ 1,935,964 $ 2,489, Salaries - part time 34,553 39,097 18,252 16,656 23, Uniform allowance 1,151 1,665 2,504 4,975 5, Coverage - training and support 5,127 17,006 22,267 45,040 48, Coverage - emergency response and leave Coverage - worker's compensation Call back or standby Separation payments - 6, , Special compensation 4,818 7,256 13,204 13,789 20, Annual leave buyback 24,102 84, ,490 44,000 70, PERS retirement 245, , , , , Survivor's benefits 7,512 5,702 7,318 7,520 7, Long term disability 13,604 17,021 19,147 12,264 13, Unemployment insurance 2,622 2,768 2,674 2,499 2, Health and dental insurance 661, , , , , Social security medicare 22,886 26,586 36,041 34,881 44, State disability insurance 7,045 8,876 10,462 9,891 11, Worker's compensation expense , Life insurance 9,753 12,408 12,733 13,483 15, Deferred comp benefit 24,066 24,132 30,082 30,000 98, Tuition reimbursement 2, ,400 5,000 25,000 Account Classification Total: Salaries and benefits $ 2,096,574 $ 2,077,255 $ 2,811,195 $ 2,947,570 $ 4,023, Services and supplies 7025 Clothing $ 2,729 $ 1,455 $ 1,570 $ 1,850 $ 3, Telephone 23,787 22,154 23,424 26,100 27, Cellular phones 13,769 16,455 18,700 18,660 24, Electronic equipment maintenance 177, , , , , Food 3,201 10,639 10,087 16,900 14, Memberships 12,118 12,123 14,879 20,523 18, Publications 554 3, ,195 3, Legal postings 1, ,798 5,000 5, Small tools and equipment 4,279 18,041 26,701 16,000 15, Inventory equipment 1,723-10,599 22, Non-inventory equipment 74,692 62,151 47,677 25,010 6, Special department expenses 13,164 53,477 3,910 3,500 6, Training 46,708 60,962 88, , , Utilities 59,113 53,124 54,547 60,444 67, General liability insurance 117, , , , , Office supplies 30,149 13,990 26,143 37,500 25, Postage 8,705 9,091 9,076 11,000 11, Printing 12,677 6,700 6,965 14,600 22, Services - auditing 11,120 23,020 17,520 17,000 18, County services 227, , , , , Services - legal 156, ,846 76, , , Services - dispatch Services - other 257, , , , , General household expense Medical supplies Vehicle maintenance Equipment maintenance 8,613 11,598 13,412 25,000 23, Fuel Structure maintenance - 37,981 51,159 63,990 52, Structure rent/lease 51, Account Classification Total: Services and supplies $ 1,316,971 $ 1,416,065 $ 1,207,946 $ 1,758,979 $ 1,954, Capital outlay 8805 Capital - land $ - $ 675,000 $ - $ - $ Capital - structure improvements - 47, , Capital - equipment 122, , ,498 43, Capital - vehicles 45,905 28,656 50,028 35, , Capital - lease purchase equipment Account Classification Total: Capital outlay $ 167,941 $ 886,853 $ 156,526 $ 568,000 $ 113,200 Division Total: 10 - Administration $ 3,581,486 $ 4,380,173 $ 4,175,667 $ 5,274,549 $ 6,090,849 84

91 2015 Actual Amount 2016 Actual Amount CHINO VALLEY FIRE DISTRICT Divisional Expenditure History Original 2017 Actual Amount 2018 Amended 2019 Original Division: 20 - Prevention Salaries and benefits 6010 Salaries regular $ 901,446 $ 918,525 $ 1,154,422 $ 1,241,524 $ 1,432, Salaries - part time 2,097-45,057 49,391 65, Uniform allowance 3,381 3,637 4,576 4,125 4, Coverage - training and support 21,657 29,036 34,235 53,540 50, Coverage - emergency response and leave 7, Coverage - worker's compensation Call back or standby 6,674 8,194 9,074 9,490 9, Separation payments 9, , Special compensation 11,073 13,619 15,893 15,900 19, Annual leave buyback 27,051 23,388 71,815 32,000 40, PERS retirement 270, , , , , Survivor's benefits Long term disability ,549 11, Unemployment insurance 2,520 1,925 2,408 2,058 1, Health and dental insurance 155, , , , , Social security medicare 15,751 15,204 20,751 19,461 22, State disability insurance 8,038 7,358 9,704 9,522 11, Worker's compensation expense Life insurance 6,415 6,105 7,353 7,172 8, Deferred comp benefit 6,016 6,033 6,016 6,000 45, Tuition reimbursement 2,610 1,701 1,188 3,200 17,500 Account Classification Total: Salaries and benefits $ 1,457,445 $ 1,487,488 $ 1,944,331 $ 2,064,142 $ 2,454, Services and supplies 7025 Clothing $ 605 $ 1,550 $ 6,011 $ 1,760 $ 20, Telephone Cellular phones 3,967 7,080 11,190 11,760 10, Electronic equipment maintenance 1,625 3,559 9,894 8,020 6, Food Memberships 1,094 1,105 2,092 3,790 3, Publications 1,927 2,155 3,686 4,887 3, Legal postings Small tools and equipment 1,643 3,740 3,557 7,367 8, Inventory equipment 1, Non-inventory equipment - 6,483 11,146 21,815 10, Special department expenses ,189 58,998 54, Training 12,543 11,432 29,161 65,020 64, Utilities General liability insurance Office supplies - 5,461 5,841 10,000 10, Postage Printing 1,258 1,971 2,013 10,700 9, Services - auditing Services - legal Services - dispatch Services - other 96,865 57,998 84, , , General household expense Medical supplies Vehicle maintenance Equipment maintenance Fuel Structure maintenance Account Classification Total: Services and supplies $ 123,627 $ 103,312 $ 205,458 $ 339,417 $ 410, Capital outlay 8830 Capital - structure improvements $ - $ - $ - $ - $ Capital - equipment 10, ,900 16, Capital - vehicles ,000 - Account Classification Total: Capital outlay 10, ,900 16,000 Division Total: 20 - Prevention $ 1,591,883 $ 1,590,800 $ 2,149,789 $ 2,504,459 $ 2,881,303 85

92 2015 Actual Amount 2016 Actual Amount CHINO VALLEY FIRE DISTRICT Divisional Expenditure History Original 2017 Actual Amount 2018 Amended 2019 Original Division: 60 - Operations Salaries and benefits 6010 Salaries regular $ 10,469,892 $ 11,403,843 $ 11,741,441 $ 12,332,196 $ 13,688, Salaries - part time 35,508 45,552 34,139 37,514 39, Uniform allowance 38,976 34,497 37,922 36,882 37, Coverage - training and support 290, , , , , Coverage - emergency response and leave 3,734,738 3,990,535 4,677,292 4,870,640 3,318, Coverage - worker's compensation 237, , , , , Call back or standby Separation payments 90,707 12, ,022 82, , Special compensation 594, , , , , Annual leave buyback 240, , , , , PERS retirement 3,439,828 3,592,372 3,663,401 4,361,413 4,476, Survivor's benefits 2,444 2,534 2,400 2,560 2, Long term disability ,062 1, Unemployment insurance 20,185 20,834 16,162 15,876 13, Health and dental insurance 1,385,403 1,945,107 1,919,851 2,035,985 2,338, Social security medicare 202, , , , , State disability insurance 986 2,487 1,742 1,646 1, Worker's compensation expense 719, , , , , Life insurance 56,966 59,053 56,485 57,642 60, Deferred comp benefit 30,083 32,572 30,083 30, , Tuition reimbursement 10,519 9,395 16,134 15,000 20,000 Account Classification Total: Salaries and benefits $ 21,601,687 $ 23,200,842 $ 25,394,420 $ 26,554,933 $ 27,276, Services and supplies 7025 Clothing $ 130,741 $ 73,005 $ 161,071 $ 128,480 $ 622, Telephone 195, , , , , Cellular phones 17,744 21,698 17,287 24,540 18, Electronic equipment maintenance 32,189 33,931 33,882 44,726 43, Food 1,153 2,105 1,121 2,000 2, Memberships 2,294 2, ,200 8, Publications 2,973 1,303 1,907 2,125 3, Legal postings Small tools and equipment 81, , ,526 99, , Inventory equipment 24,961 82,363 47,735 57,657 68, Non-inventory equipment 147, , , , , Special department expenses 11,445 13,584 18,426 27,340 24, Training 44,402 59,181 42,153 96, , Utilities 206, , , , , General liability insurance (1,576) Office supplies 811 8,107 8,743 11,500 12, Postage Printing 1,144 2,379 1,408 5,300 5, Services - auditing Services - legal Services - dispatch 534, , , , , Services - other 616, , , , , General household expense 29,183 29,429 38,230 36,000 38, Medical supplies 68,715 76,556 88,622 95, , Vehicle maintenance 400, , , , , Equipment maintenance 45,886 52,176 52,365 99,140 76, Fuel 122, , , , , Structure maintenance 148, , , , , Structure rent/lease 18,840 18,936 3, Account Classification Total: Services and supplies $ 2,886,931 $ 2,910,424 $ 3,138,265 $ 3,723,886 $ 4,220, Capital outlay 8805 Capital - land $ - $ - $ - $ - $ Capital - structure improvements 56,041 1,331,486 8,650 20,000 88, Capital - equipment 239,100 39, , , , Capital - vehicles 332, ,051 1,969, , , Capital - lease purchase equipment 177,447 (402,371) - - Account Classification Total: Capital outlay $ 805,315 $ 1,601,913 $ 2,110,718 $ 864,426 $ 1,380,134 Division Total: 60 - Operations $ 25,293,933 $ 27,713,179 $ 30,643,403 $ 31,143,245 $ 32,877,238 86

93 2015 Actual Amount 2016 Actual Amount CHINO VALLEY FIRE DISTRICT Divisional Expenditure History Original 2017 Actual Amount 2018 Amended 2019 Original Expenditures Total $ 30,467,302 $ 33,684,152 $ 36,968,859 $ 38,922,253 $ 41,849,390 Prior Year Encumbrance Rollovers 7000P - Services and supplies 7125 Inventory equipment $ 157,283 $ Non-inventory equipment - 61, Medical supplies - 12, P - Capital outlay 8840 Capital - equipment 434, Capital - vehicles - 313,665 Transfer out to next year Prior Year Encumbrance Rollovers $ 591,831 $ 388,414 $ - $ - $ - Adjusted Expenditures Total $ 31,059,133 $ 34,072,566 $ 36,968,859 $ 38,922,253 $ 41,849,390 87

94 Fund: 100 General Fund 2018 Amended CHINO VALLEY FIRE DISTRICT Year-over-Year Comparisons Original 2019 Original Variance Change Revenue Property tax revenue $ 27,735,207 $ 30,456,742 $ 2,721, % Contract revenue 9,641,601 9,718,853 77, % Other revenue 1,979,000 1,989,000 10, % Prior Year Encumbrance Rollovers Revenue Totals $ 39,355,808 $ 42,164,595 $ 2,808, % Expenditures Salaries and benefits $ 31,566,645 $ 33,754,652 $ 2,188, % Services and supplies 5,822,282 6,585, , % Capital outlay 1,533,326 1,509,334 (23,992) -1.6% Prior Year Encumbrance Rollovers Operating & Capital Expenditures $ 38,922,253 $ 41,849,390 $ 2,927, % Net Change in Fund Balance $ 433,555 $ 315,205 $ (118,350) Transfers In - Capital Replacement $ 421,100 $ 727,860 $ 306,760 Net Operating Revenue $ 854,655 $ 1,043,065 $ 188,410 88

95 2018 Amended 2019 Original Variance $$ Variance % Comments on significant variances (> $25,000 & 3%) Fund: General Fund Expenditures Salaries and benefits 6010 Salaries regular $ 15,509,684 $ 17,610,529 $ 2,100, % Average of 8.8 FTE open positions in '17-18 due to retirements and other vacancies vs. a very low 0.8 projected average in new budget, impacts of MOU changes and known step increases Coverage - training and support 456, , , % Introduction of new cardiac care equipment in FY19 necessitates comprehensive training for all safety personnel 6036 Coverage - emergency response and leave 4,870,640 3,318,110 (1,552,530) -31.9% Mainly due to assumed significant reduction in vacant positions Coverage - worker's compensation 350, ,000 (50,000) -14.3% Assumed reduction in worker's compensation injuries based on recent trends Separation payments 82, , , % Based on projected retirements in FY Special compensation 644, ,316 44, % Significant reduction in assumed vacancies Annual leave buyback 440, ,000 60, % Based on trend analysis PERS retirement 5,017,763 5,436, , % Based on reduced open positions assumption Health and dental insurance 2,745,817 3,123, , % Based on reduced open positions assumption Social security medicare 315, ,443 (44,144) -14.0% Based on projected staffing for FY Worker's compensation expense 731, ,000 (31,300) -4.3% Fluctuates significantly from yearto-year based on claims activity. Reduced budget based on recent trends Deferred comp benefit 66, , , % Based on new MOU benefits Tuition reimbursement 23,200 62,500 39, % Based on new MOU benefits. Account Classification Total: Salaries and benefits $ 31,566,645 $ 33,754,652 $ 2,188, % Services and supplies 7025 Clothing $ 132,090 $ 647,521 $ 515, % Triennial safety uniform replacement, five-year safety turnouts replacement Small tools and equipment 122,991 $ 165,632 42, % Annual required supplies may vary significantly from year-toyear Non-inventory equipment 358,597 $ 326,334 (32,263) -9.0% Reduced requisitions in FY County services 241,500 $ 403, , % Bi-annual election year Services - dispatch 650,000 $ 675,000 25, % Projected annual cost increases Medical supplies 95, ,900 42, % Primarily due to additional supplies required for new cardiac care program Structure maintenance 335, ,230 (42,340) -12.6% Fewer rehab projects planned for FY19. Account Classification Total: Services and supplies Note: Account classification totals are presented for comparative illustration purposes only. CHINO VALLEY FIRE DISTRICT ed Expenditures Variance Report FY19 Original vs. FY18 Amended $ 5,822,282 $ 6,585,404 $ 763, % 89

96 Capital Replacement Funds Original Account Description TOTALS Ford Truck $ 45, Chevy Truck (2) 68, Fire Engine (Type 1) $ 614,860 Total Capital Replacement Fund Items $ 727,860 90

97 Long-Range Financial Plan 10-Year Outlook YEAR Revenues Property Tax Share $ 27,735,207 $ 30,456,742 $ 32,308,512 $ 33,439,310 $ 34,442,489 $ 35,475,764 $ 36,540,037 $ 37,636,238 $ 38,765,325 $ 39,928,285 Chino Contract $ 9,641,601 $ 9,718,853 $ 10,107,607 $ 10,461,373 $ 10,775,215 $ 11,098,471 $ 11,431,425 $ 11,774,368 $ 12,127,599 $ 12,491,427 Other Revenue (3% annual increase) $ 1,979,000 $ 1,989,000 $ 2,048,670 $ 2,110,130 $ 2,173,434 $ 2,238,637 $ 2,305,796 $ 2,374,970 $ 2,446,219 $ 2,519,606 Total Revenue $ 39,355,808 $ 42,164,595 $ 44,464,789 $ 46,010,813 $ 47,391,138 $ 48,812,872 $ 50,277,258 $ 51,785,576 $ 53,339,143 $ 54,939,317 Expenditures Salaries and benefits (3% in Year 4, 6, 8; 1.5% all other yrs) $ 31,566,645 $ 33,754,652 $ 31,937,779 $ 31,964,534 $ 32,923,470 $ 33,581,940 $ 34,589,398 $ 35,281,186 $ 36,339,621 $ 37,066,414 Services and supplies (2% annual increase) $ 5,822,282 $ 6,585,404 $ 6,411,112 $ 6,539,334 $ 6,670,121 $ 6,803,523 $ 6,939,594 $ 7,078,386 $ 7,219,953 $ 7,364,353 Capital Outlay $ 1,533,326 $ 1,509,334 $ 2,343,364 $ 1,941,048 $ 118,604 $ 380,664 $ 887,671 $ 747,324 $ 146,152 $ 866,006 ary Encumbrance Carryovers (net) Unfunded Actuarial Liability Payments (Fixed Amts) $ 2,747,100 $ 3,219,400 $ 3,800,100 $ 4,298,900 $ 4,629,890 $ 4,909,940 $ 4,909,940 $ 4,909,940 Station No. 8 - Opening in 2020/21 $ 1,943,711 $ 2,002,022 $ 2,032,053 $ 2,093,014 $ 2,124,410 $ 2,156,276 $ 2,188,620 Second Battalion (3 BCs) in 2020/21 $ 821,874 $ 846,530 $ 846,530 $ 871,926 $ 871,926 $ 871,926 $ 871,926 Station No. 9 - Opening in 2024/25 $ 2,124,410 $ 2,156,276 $ 2,188,620 Accelerated Pension Funding (1/3 of PY Surplus) $ - $ 104,018 $ 304,067 $ - $ 339,996 $ 174,658 $ 30,065 $ - $ - Total Expenditures $ 38,922,253 $ 41,849,390 $ 43,543,373 $ 46,733,968 $ 46,360,847 $ 48,283,605 $ 50,186,151 $ 53,167,645 $ 53,800,144 $ 55,455,877 Net Operating Revenues over (under) Expenditures $ 1,966,881 $ 1,824,539 $ 3,368,798 $ 1,521,960 $ 1,148,894 $ 1,249,926 $ 1,153,436 $ (604,681) $ (314,849) $ 349,446 ALL Revenues over (under) Expenditures $ 433,555 $ 315,205 $ 921,416 $ (723,155) $ 1,030,291 $ 529,266 $ 91,107 $ (1,382,070) $ (461,001) $ (516,560) Net Revenues $ 433,555 $ 315,205 $ 921,416 $ (723,155) $ 1,030,291 $ 529,266 $ 91,107 $ (1,382,070) $ (461,001) $ (516,560) Carryover of Available Unassigned Fund Balance $ 7,730,326 $ 7,786,872 $ 7,831,574 $ 8,518,927 $ 8,827,272 $ 8,343,309 $ 7,748,168 $ 5,844,808 $ 4,281,311 $ 2,469,752 Other Fund Balance Changes $ 377,009 $ 270,502 $ 234,063 $ (1,031,500) $ 1,514,254 $ 1,124,407 $ 1,994,467 $ 181,428 $ 1,350,558 $ 200,704 Total Available Unassigned Fund Balance $ 7,786,872 $ 7,831,574 $ 8,518,927 $ 8,827,272 $ 8,343,309 $ 7,748,168 $ 5,844,808 $ 4,281,311 $ 2,469,752 $ 1,752,488 Cost of New Station(s) Base salaries & benefits per station #REF! $ 1,425,796 $ 1,468,570 $ 1,490,598 $ 1,535,316 $ 1,558,346 $ 1,605,097 $ 1,629,173 $ 1,653,611 $ 1,678,415 Staffing Coverage #REF! $ 276,933 $ 285,241 $ 289,520 $ 298,205 $ 302,678 $ 311,759 $ 316,435 $ 321,182 $ 325,999 Extra employees per admin/safety ratio #REF! $ 156,481 $ 161,175 $ 163,593 $ 168,501 $ 171,028 $ 176,159 $ 178,802 $ 181,484 $ 184,206 Total est. cost of staffing new station #REF! $ 1,859,210 $ 1,914,986 $ 1,943,711 $ 2,002,022 $ 2,032,053 $ 2,093,014 $ 2,124,410 $ 2,156,276 $ 2,188,620 Cost of Second Battalion $ 797,936 $ 821,874 $ 821,874 $ 846,530 $ 846,530 $ 871,926 $ 871,926 $ 871,926 $ 871,926 Other Fund Balances Nonspendable - Deposits $ 129,796 $ 129,796 $ 129,796 $ 129,796 $ 129,796 $ 129,796 $ 129,796 $ 129,796 $ 129,796 $ 129,796 Restricted - Section 115 Trust $ 5,072,747 $ 5,072,747 $ 5,072,747 $ 5,072,747 $ 5,072,747 $ 5,072,747 $ 5,072,747 $ 5,072,747 $ 5,072,747 $ 5,072,747 Committed - Workers Comp Reserve $ 1,304,088 $ 1,304,088 $ 1,304,088 $ 1,304,088 $ 1,304,088 $ 1,304,088 $ 1,304,088 $ 1,304,088 $ 1,304,088 $ 1,304,088 Committed - Equipment Replacement $ 1,314,242 $ 930,706 $ (104,794) $ (706,788) $ 461,730 $ 1,361,050 $ 1,728,885 $ 2,290,304 $ 3,403,432 $ 3,765,994 Committed - Facility Acquisition & Maintenance $ 49,858 $ 51,354 $ 52,895 $ 54,482 $ 56,116 $ 57,799 $ 59,533 $ 61,319 $ 63,159 $ 65,054 Committed - Compensated Absences $ 2,022,261 $ 2,082,929 $ 2,145,416 $ 2,209,779 $ 2,276,072 $ 2,344,355 $ 2,414,685 $ 2,487,126 $ 2,561,739 $ 2,638,592 Committed - Emergency Contingency $ 6,487,042 $ 6,974,898 $ 7,257,229 $ 7,788,995 $ 7,726,808 $ 8,047,268 $ 8,364,358 $ 8,861,274 $ 8,966,691 $ 9,242,646 Assigned - Transfers & Pension Funding $ - $ 104,018 $ 1,027,222 $ - $ 339,996 $ 174,658 $ 1,412,135 $ 461,001 $ 516,560 $ - Unassigned $ 7,786,872 $ 7,831,574 $ 8,518,927 $ 8,827,272 $ 8,343,309 $ 7,748,168 $ 5,844,808 $ 4,281,311 $ 2,469,752 $ 1,752,488 Total Other Fund Balances $ 16,380,033 $ 16,650,536 $ 16,884,599 $ 15,853,099 $ 17,367,353 $ 18,491,760 $ 20,486,227 $ 20,667,655 $ 22,018,213 $ 22,218,916 Total Ending Fund Balance $ 24,166,905 $ 24,482,110 $ 25,403,526 $ 24,680,371 $ 25,710,662 $ 26,239,928 $ 26,331,035 $ 24,948,966 $ 24,487,965 $ 23,971,405 91