Lakeside Fire Protection District PRELIMINARY BUDGET FISCAL YEAR

Lakeside Fire Protection District PRELIMINARY BUDGET FISCAL YEAR 2018-19

Lakeside Fire Protection District PRELIMINARY BUDGET FISCAL YEAR 2019 Director Bob Robeson Board President Director Jim Bigham Board Vice President Director Mark Baker Board Member Director Jim Bigham Board Member Director Pete Liebig Board Member Donald Butz Fire Chief

TABLE OF CONTENTS GENERAL INFORMATION 3 About Our District 4 Our Mission 4 Budget Resolution 5 Organization Chart 6 BUDGET MESSAGE 7 Budget Highlights 8 Budget Calendar 9 Summary of Staffing Changes 10 Budget Account Structure 11 BUDGET SUMMARY 12 Overall Summary 13 Revenue Summary 14 Expenditure Summary 15 Changes in Fund Balance 16 BUDGET DETAIL 17 Revenue Detail 18 Expenditure Detail 19 Departmental Detail 22 Department 01 Administration 22 Department 11 Finance 24 Department 12 Human Resources 25 Department 13 Board of Directors 26 Department 15 Support Services 27 Department 21 Fire Prevention 28 Department 22 Logistical Volunteer Group 29 Department 62 Suppression 30 Department 63 Emergency Medical Services (EMS) 32 Department 64 LKS Emergency Medical Services 35 APPENDIX 36 GENERAL FUND RESERVE POLICY 36 2

GENERAL INFORMATION 3

Lakeside Fire Protection District About Our District The Lakeside Fire Protection District in San Diego County is home to over 62,000 residents living in the communities of Lakeside, Eucalyptus Hills, Moreno, Winter Gardens, Lakeview, Johnstown, Blossom Valley, Flinn Springs, Pepper Dr. and other areas of unincorporated El Cajon. Our service area is primarily suburban residential but also has several core commercial zones, some light industry, and many rural/agricultural properties. The district also has a significant wildland/urban interface. The Lakeside Fire District is proud to have been an original participant in the Heartland Mutual Aid Pact and continues to operate the longest running paramedic program in San Diego County. Our Mission The Lakeside Fire Department is dedicated to the prevention and suppression of fire; the emergency treatment and transportation of the ill and injured; and those duties that provide for protection of life, property, and the environment. 4

Budget Resolution 5

Lakeside Fire Protection District Organization Chart Fire District Residents Governing Board of the Lakeside Fire Protection District Clerk of the Board Fire Chief / CEO Executive Assistant Human Resources (FY18/19 Proposed) Division Chief (A Division) Division Chief (B Division) Fire Prevention Officer (FY18/19 Proposed) Division C hief (C Division) Finance Officer Engine 1 Engine 1 Engine 1 Admin. Assistant Accounting Engine 2 Medic 2 Engine 2 Medic 2 Engine 2 Medic 2 Engine 3 Medic 3 Engine 3 Medic 3 Engine 3 Medic 3 Engine 26 Engine 26 Engine 26 6

BUDGET MESSAGE 7

Budget Highlights Highlights of the FY2019 Preliminary Budget include a net decrease in Fund Balance of $0.2 million. This is based on total revenues of $16.0 million compared to total expenditures of $16.2 million and includes approximately $1.1 million transfer out to the capital reserve based on the Board adopted five-year capital funding plan (Resolution 17-015). Including transfers in from the Assigned General Fund Reserves, net operating revenue for FY2019 are projected to be approximately $26,000, and the ending Fund Balance total of the Assigned, Committed, and Unassigned reserves combined is projected to be $8.7 million at June 30, 2019. Revenue Recap Revenues of nearly $16.0 million in the FY2019 Preliminary Budget represent a $0.6 million or 4.0% increase over the FY2018 approved budget revenues. This includes $3.4 million revenue from the CSA-69 (Emergency Medical Services) contract with the County of San Diego. Revenues from other agencies ($4.3 million) combined with property tax revenues ($11.5 million) represent approximately 99% of the District s revenues. Expenditure Recap The Lakeside Fire Protection District is a service organization; therefore, salaries and benefits represent 74% of total budgeted expenditures in FY2019, and overall 12% increase in operating expenses over the FY2018 approved budget. Services and Supplies represent 16% of total budgeted expenditures in FY2019, and overall 1.2% increase in operating expenses over the FY2018 approved budget. Debt Services is a non-operating budget item and represent 3% of total budgeted expenditures in FY2019 and is offset by revenue received from the County of San Diego. Transfers out to Capital Reserve represent 7% of total budgeted expenditures in FY2019, and overall 3% increase over the FY2018 approved budget. 8

Budget Calendar Date Preliminary Budget Calendar Attendance 4-Apr Budget Preparation Staff 16-Apr Budget Preparation Staff 8-May Budget Preparation - Individual meetings Staff 29-May Budget Workshop M&O and Salaries & Benefits Committee 5-Jun Budget Workshop Overall Preliminary Budget Committee 12-Jun - 1st Board Meeting* 26 Jun - 2nd Board Meeting Board Mtg. - Submission of Preliminary Budget Board Mtg. - Approval of Preliminary Budget *Board may approve the budget at the 1 st meeting Board* Board Date Final Budget Calendar Attendance 17-Jul Capital Budget Preparation Staff 24-Jul Capital Budget Preparation Staff 31-Jul Final Budget & Budget Policy Prep Staff 14-Aug Budget Workshop - Reserve Policy Committee 21-Aug Budget Workshop- Capital Budget Committee 28-Aug Budget Workshop - Capital & Final Budget Committee Sep 11-1st Board Meeting* Sep 25-2nd Board Meeting Board Mtg - Submission of Final Budget & Capital Plan Board Mtg - Approval of Final Budget & Capital Plan *Board may approve the budget at the 1 st meeting Board* Board 9

Summary of Staffing Changes FY17-18 Authorized Positions Changes FY18-19 Proposed positions Full Time Equivalent (FTE) List Administrative: Administrativ e Assistant - Accountant 1.00 1.00 Administrativ er Serv ices Manager 1.00 (1.00) - Executiv e Assistant 1.00 1.00 Finance Officer 1.00 1.00 Human Resources Analyst 1.00 1.00 Prevention Officer 1.00 1.00 Total Administration 4.00 1.00 5.00 Safety/Admin: Division/Deputy Chief 3.00 3.00 Fire Chief 1.00 1.00 Total Safety/Admin 4.00-4.00 Safety: Captain 12.00 12.00 Engineer 12.00 12.00 Firefighter PM 12.00 12.00 Total Safety 36.00-36.00 Safety/CSA69: Firefighter PM 12.00 12.00 Total CSA69 12.00-12.00 TOTAL FTEs 56.00 1.00 57.00 10

Budget Account Structure XXX-XX-XX-XXXX Fund Division Department Account Code XXX XX XX XXXX Fund Description 100 General Fund Division 10 Administrative Services 20 Fire Prevention & Community Services 60 Emergency Services 70 Contingency 80 Non-Operating Department 01 Administration 11 Finance 12 Human Resources 13 Board of Directors 14 Public Education 15 Support Services 21 Fire Prevention 22 Logistical Volunteer Group 23 C.E.R.T. Program 61 Training 62 Suppression 63 Emergency Medical Services(EMS) 64 LKS Emergency Medical Services 11

BUDGET SUMMARY 12

Overall Summary Fund: 100 - General Fund Revenues Budget Summary Multi Year Comparison Fiscal Year 2019 Overall Summary 2016-2017 Actual 2017-2018 Approved 2018-2019 Proposed Change % change 40 - Property Taxes $ 10,431,595 $ 11,015,000 $ 11,513,000 $ 498,000 4.52% 41 - Fees and Services 155,527 51,000 51,000-0.00% 42 - Revenue from other Agencies/Grants 3,850,740 4,285,279 4,353,033 67,754 1.58% 43 - Miscellaneous Revenue 25,197 - - - 0.00% 44 - Use of Money and Property 167,716 32,000 32,000-0.00% Total Revenues $ 14,630,776 $ 15,383,279 $ 15,949,033 $ 565,754 3.68% Expenses 60 - Salaries & Benefits $ 9,938,262 $ 10,786,718 $ 12,005,150 $ 1,218,433 11.30% 70 - Services & Supplies 2,454,019 2,698,606 2,528,341 (170,265) -6.31% 80 - Debt Service 1,001,163 550,773 548,985 (1,788) -0.32% 85 - Capital Outlay 433,983 2,335,000 - (2,335,000) -100.00% 99 - Transfers Out Capital Reserve - 1,054,732 1,083,092 28,360 2.69% Total Expenses $ 13,827,426 $ 17,425,828 $ 16,165,568 $ (1,260,260) -7.23% Net Change in Fund Balance $ 803,349 $ (2,042,549) $ (216,535) $ 1,826,014 Transfers In from Reserves: Transfer In from Accrual Leave Reserve $ 109,945 Transfer In from HCFA JPA Reserve 33,000 Transfer In from Budget Stability Reserve 100,000 Total Transfers In from Reserves $ 242,945 Net Operating Revenue (over/under) Budget $ 26,410 13

Revenue Summary Sources of Funds Fiscal Year 2017 2019 Revenue 2016-2017 Revenue Category Actual Fund: 100 - General Fund Revenues 40 - Property Taxes 10,431,595 2017-2018 Adopted 2018-2019 Proposed Change $ $ 11,015,000 $ 11,513,000 $ 498,000 41 - Fees and Services 155,527 51,000 51,000-42 - Revenue from other Agencies/Grants 3,850,740 4,285,279 4,353,033 67,754 43 - Miscellaneous Revenue 25,197 - - - 44 - Use of Money and Property 167,716 32,000 32,000 - Total Revenues $ 14,630,776 $ 15,383,279 $ 15,949,033 $ 565,754 Total Revenue Fiscal Year 2019 14

Expenditure Summary Uses of Funds Fiscal Year 2017 2019 Expenditures 2016-2017 Expense Category Actual Fund: 100 - General Fund Expenses 60 - Salaries & Benefits 9,938,262 2017-2018 Adopted 2018-2019 Proposed Change $ $ 10,786,718 $ 12,005,150 $ 1,218,433 70 - Services & Supplies 2,454,019 2,698,606 2,528,341 (170,265) 80 - Debt Service 1,001,163 550,773 548,985 (1,788) 85 - Capital Outlay 433,983 2,335,000 - (2,335,000) 99 - Transfers Out Capital Reserve - 1,054,732 1,083,092 28,360 Total Expenses $ 13,827,426 $ 17,425,828 $ 16,165,568 $ (1,260,260) Total Budget Fiscal Year 2019 15

Changes in Fund Balance FY 2017/18 - FINAL BUDGET Assigned: Changes In Fund Balance Fiscal Year 2018 & Fiscal year 2019 Beginning Fund Balance 7-1-2017 Transfers In Transfers Out Estimated Ending Fund Balance 6/30/2018** Budget Stability Reserve $ 500,000 $ 590,725 $ (372,500) $ 718,225 Accrued Leave Reserve * 1,100,000 109,945 (109,945) 1,100,000 Capital Equipment & Vehicle Reserve 1,150,000 812,562 (1,623,000) 339,562 Capital Facilities Reserve 950,000 242,170 (704,500) 487,670 HCFA JPA Liability Reserve 750,000 (33,000) 717,000 Self-Insured Retention Reserve 600,000 600,000 Com m itted: Economic Budget Stability Reserve 2,691,250-2,691,250 Unassigned: Fund Balance 158,312 880,000 (28,773) 1,009,539 Available (Budget) Total General Fund $ 7,899,562 $ 2,635,402 $ (2,871,718) $ 7,663,246 - ** Fund Balance is an estimate until FY17-18 is closed and Audited FY 18/19 - FINAL BUDGET Assigned: Beginning Fund Balance 7-1-2018** Transfers In Transfers Out Estimated Ending Fund Balance 6/30/2019** Budget Stability Reserve $ 718,225 $ 26,410 $ (100,000) $ 644,635 Accrued Leave Reserve * 1,100,000 109,945 (109,945) 1,100,000 Capital Equipment & Vehicle Reserve 339,562 1,028,813 (150,000) 1,218,375 Capital Facilities Reserve 487,670 554,279 1,041,949 HCFA JPA Liability Reserve 717,000 (33,000) 684,000 Self-Insured Retention Reserve 600,000 600,000 Unfunded Liability Reserve (Proposed) - 400,000 400,000 Com m itted: Economic Budget Stability Reserve 2,691,250 187,000 2,878,250 Unassigned: Fund Balance 1,009,539 (900,000) 109,539 Available (Budget) Total General Fund $ 7,663,246 $ 2,306,447 $ (1,292,945) $ 8,676,748 - - 16

BUDGET DETAIL 17

Revenue Detail RPT Category: 40 - Property Taxes Revenue Detail Fiscal Year 2017 2019 Revenues 2016-2017 Actual 2017-2018 Adopted 2018-2019 Proposed Change 4010 - Property tax - current secured $ 9,362,019 $ 9,850,000 $ 10,348,000 $ 498,000 4020 - Property tax - current unsecured - - - - 4030 - Property tax - current utility - - - - 4040 - Property tax - prior and penalty - - - - 4050 - Property tax - home owner's exemption - - - - 4060 - Property tax - supplemental - - - - 4080 - Property tax - Fixed Charge Special Assessment 916,928 915,000 915,000-4090 - Property tax - RDA Passthrough 152,648 250,000 150,000 (100,000) 4091 - Property tax - CSA-115 Allocation - - 100,000 100,000 Total Property Tax $ 10,431,595 $ 11,015,000 $ 11,513,000 $ 498,000 RPT Category: 41 - Fees and Services 4110 - Mitigation Fees $ 154,747 $ 50,000 $ 50,000 $ - 4120 - Fees for Services 780 1,000 1,000 - Total Fees and Services $ 155,527 $ 51,000 $ 51,000 $ - RPT Category: 42 - Revenue from other Agencies/Grants 4200 - County of San Diego CSA-69 $ 2,956,534 $ 3,312,779 $ 3,380,533 $ 67,754 4205 - County of San Diego Cooperation Agreement 4206 - County of San Diego First Responder Claims - 550,000 550,000-595,032 50,000 50,000-4210 - Fire Assignment Reimbursement 275,353 372,500 372,500-4220 - Other revenue 16,980 - - - 4225 - Grants 6,841 - - - Total Revenue from Other Agencies/Grants $ 3,850,740 $ 4,285,279 $ 4,353,033 $ 67,754 RPT Category: 43 - Miscellaneous Revenue 4310 - Sale of fixed assets $ 10,463 $ - $ - $ - 4315 - Donations 2,500 - - - 4320 - Purchasing Card Incentive Program 2,734 - - - 4325 - Miscellaneous Revenue 2,911 - - - 4326 - Training Revenue 6,589 - - - Total Miscellaneous Revenue $ 25,197 $ - $ - $ - RPT Category: 44 - Use of Money and Property 4410 - Interest Revenue $ 74,984 $ 12,000 $ 12,000 $ - 4430 - Cell Tower Lease Revenue 48,159 20,000 20,000-4435 - Property Lease Revenue 44,572 - - - Total Use of Money and Property $ 167,716 $ 32,000 $ 32,000 $ - Total Revenues $ 14,630,776 $ 15,383,279 $ 15,949,033 $ 565,754 18

Expenditure Detail RPT Category: 60 - Salaries & Benefits Expense Detail Fiscal Year 2017 2019 Expenses 2016-2017 Actual 2017-2018 Adopted 2018-2019 Proposed Change 6010 - Salaries regular $ 3,916,522 $ 4,324,500 $ 4,788,550 $ 464,050 6033 - OT Coverage - Open - - 341,006 341,006 6034 - OT Coverage - leave 1,373,141 1,142,500 1,005,289 (137,211) 6035 - OT Coverage - training and support 103,186 141,000 186,672 45,672 6036 - OT Coverage - emergency response - 7,000 - (7,000) 6038 - OT Coverage - Fire Assignment - Reimburseable 145,928 255,000 255,000-6039 - OT Coverage-Nonreimbursed 57,631 70,000 70,000-6049 - Cell Phone Allowance - - 3,900 3,900 6050 - Uniform allowance 39,000 52,004 52,000 (4) 6051 - Holiday Pay 109,275 127,000 136,539 9,539 6052 - FLSA Pay 109,690 106,000 130,204 24,204 6053 - Paramedic Incentive / ALS Pay 34,028 52,000 64,896 12,896 6054 - Paramedic Preceptor Pay - 3,000 3,273 273 6056 - Education Incentive - - 15,000 15,000 6090 - Annual leave buyback 112,645 109,945 109,945-6125 - PERS retirement 2,743,825 848,595 943,720 95,125 6126 - PERS retirement Unfunded Actuarial Liability - 1,171,887 1,420,638 248,751 6210 - Long term disability - - 7,056 7,056 6220 - Health and dental insurance 783,909 974,352 1,046,520 72,168 6221 - Health Insurance Retiree Benefits 20,334 969,709 920,595 (49,114) 6225 - Social security medicare 90,725 93,587 89,920 (3,667) 6235 - Worker's compensation expense - 338,639 414,427 75,788 6325 - Retroactive pay 298,423 - - - Total Salaries & Benefits $ 9,938,262 $ 10,786,718 $ 12,005,150 $ 1,218,433 19

Expenditure Detail (Continue) RPT Category: 70 - Services & Supplies 2016-2017 Actual 2017-2018 Adopted 2018-2019 Proposed Change 7035 - Telephone $ 31,778 $ 30,000 $ 30,000 $ - 7042 - Cellular phones 8,593 15,000 15,000-7070 - Fire Department Sustenance 5,755 6,251 6,251 1 7071 - Meetings 18,593 16,500 16,500-7075 - Memberships 2,224 2,400 2,400-7080 - Publications 2,616 2,700 2,700-7100 - Uniforms 948 23,100 3,800 (19,300) 7110 - Personal Protective Equipment (PPE) 78,937 75,000 80,500 5,500 7115 - SCBA Equipment 19,145 17,000 17,000-7121 - Fire Hose 11,244 17,000 - (17,000) 7122 - Rescue Equipment 5,221 5,000 7,500 2,500 7123 - Communication Equipment 35,843 32,000 32,000-7130 - Non-inventory equipment 30,182 19,000 36,000 17,000 7135 - Special department expenses 15,238 26,000 22,500 (3,500) 7140 - Training 121,094 152,460 152,460-7180 - Utilities 94,711 105,700 105,700-7250 - General liability insurance 42,836 55,000 55,000-7305 - Office supplies 8,913 13,000 13,000-7310 - Postage 1,162 2,000 2,000-7330 - Household Cleaning Supplies 11,544 10,000 10,000-7405 - Services - Auditing 10,815 18,000 18,000-7415 - Services - County of San Diego 351,631 382,721 326,500 (56,221) 7440 - Services - Legal 33,100 36,200 36,200-7445 - Services - Communications / Dispatch 430,471 449,904 497,519 47,615 7446 - Services - Computer Maintenance 39,113 46,000 46,000-7450 - Services - Software Applications 75,268 86,100 87,100 1,000 7455 - Services-Physical Appraisals 30,719 30,000 30,000-7460 - Services-Professional Counsultants 27,068 50,000 50,000-7475 - Services - Other 26,228 32,500 32,500-7525 - Services - Laundry and Linen 2,628 4,500 4,500-7535 - General household expense - - - - 7540 - Medical supplies 150,057 147,040 147,040-7541 - Medical Waste Control 2,111 2,500 2,500-7545 - ALS Engine 926 8,000 8,000-7550 - Vehicle Preventitive Maintenance 92,347 109,500 114,975 5,475 7551 - Vehicle Repairs 123,654 97,000 101,850 4,850 7555 - Equipment maintenance - 32,000 34,500 2,500 7560 - Fuel - Diesel 70,064 85,000 85,000-7561 - Fuel - Gas 20,441 25,000 25,000-7570 - Station Maintenance 122,832 221,731 123,046 (98,685) 7579 - Miscellaneous 295,469 62,300 300 (62,000) 7580 - Emergency Incident-Vehicle - 75,000 75,000-7581 - Emergency Incident-Admin Overhead 51 37,500 37,500-7582 - Emergency Incident-Other - 5,000 5,000-7585 - Non-Reimbursable Incidents - Vehicles 99 10,000 10,000-7586 - Fire Assign. Non-reimbursed-Admin - 10,000 10,000-7587 - Fire Assign. Non-reimbursed-Other 1,448 10,000 10,000-7597 - Structure rent/lease 903 - - - Total Services & Supplies $ 2,454,019 $ 2,698,606 $ 2,528,341 $ (170,265) 20

Expenditure Detail (Continue) RPT Category: 80 - Debt Service 2016-2017 Actual 2017-2018 Adopted 2018-2019 Proposed Change 8010 - Debt Service C.O.P. - Principal Payment $ 750,000 $ 320,000 $ 330,000 $ 10,000 8011 - Debt Service C.O.P. - Interest Payment 251,163 230,773 218,985 (11,788) Total Debt Services $ 1,001,163 $ 550,773 $ 548,985 $ (1,788) RPT Category: 85 - Capital Outlay 8830 - Capital - structure improvements $ 145,911 $ 745,000 $ - $ (745,000) 8840 - Capital - equipment 126,953 755,000 - (755,000) 8850 - Capital - vehicles 161,120 835,000 - (835,000) Total Capital Outlay $ 433,983 $ 2,335,000 $ - $ (2,335,000) RPT Category: 99 - Transfers Out - 8801 - Capital Funding Transfer $ - $ 242,170 $ 254,279 $ 12,109 8802 - Capital Funding - 606,900 619,038 12,138 8803 - Capital Funding Transfer - 205,662 209,775 4,113 Total Transfer out to Capital Reserve $ - $ 1,054,732 $ 1,083,092 $ 28,360 Total Expenses $ 13,827,426 $ 17,425,828 $ 16,165,568 $ (1,260,260) 21

Departmental Detail Department 01 Administration 2016-2017 Department Actual Department: 01 - Administration RPT Category: 60 - Salaries & Benefits 6010 - Salaries regular 814,585 6035 - OT Coverage - training and support 6038 - OT Coverage - Fire Assignment - Reimburseable 2017-2018 Adopted 2018-2019 Proposed $ $ 686,250 $ 1,018,415 103,186 7,500 8,472 - - - 6049 - Cell Phone Allowance - - 3,900 6050 - Uniform allowance 3,000 3,000 4,000 6053 - Paramedic Incentive / ALS Pay - 2,250 3,000 6090 - Annual leave buyback 19,467 82,459 109,945 6125 - PERS retirement 374,355 127,664 167,757 6126 - PERS retirement Unfunded Actuarial Liability - 86,240 140,225 6210 - Long term disability - - - 6220 - Health and dental insurance 133,372 113,760 165,240 6221 - Health Insurance Retiree Benefits 20,334 103,897 117,167 6225 - Social security medicare 89,374 10,165 14,933 6235 - Worker's compensation expense - 54,346 83,487 6325 - Retroactive pay 61,619 - - Total Salaries & Benefits $ 1,619,293 $ 1,277,531 $ 1,836,541 RPT Category: 70 - Services & Supplies 7035 - Telephone $ 31,778 $ 22,500 $ 22,500 7042 - Cellular phones 8,593 11,250 11,250 7070 - Fire Department Sustenance 5,755 4,688 4,688 7071 - Meetings - 6,188 6,187 7075 - Memberships 2,224 1,800 1,800 7140 - Training 15,724 11,250 11,250 7250 - General liability insurance 42,836 41,250 41,250 7305 - Office supplies 8,913 9,750 9,750 7310 - Postage 1,162 1,500 1,500 7330 - Household Cleaning Supplies 11,544 7,500 7,500 7405 - Services - Auditing 10,815 13,500 13,500 7415 - Services - County of San Diego 122,605 93,750 93,750 7440 - Services - Legal 33,100 27,150 27,150 7445 - Services - Communications / Dispatch 430,471 337,428 302,711 7446 - Services - Computer Maintenance 39,113 34,500 34,500 7450 - Services - Software Applications 58,617 48,750 49,500 7455 - Services-Physical Appraisals 30,719 22,500 22,500 7460 - Services-Professional Counsultants 27,068 37,500 37,500 7475 - Services - Other 26,228 9,375 9,375 7525 - Services - Laundry and Linen 2,628 3,375 3,375 7535 - General household expense - - - 7570 - Station Maintenance 2,483 2,048-7579 - Miscellaneous 295,469 62,000-7597 - Structure rent/lease 903 - - Total Services & Supplies $ 1,208,748 $ 809,552 $ 711,536 22

Department 01 Administration (Continue) Department RPT Category: 80 - Debt Service 8010 - Debt Service C.O.P. - Principal Payment 8011 - Debt Service C.O.P. - Interest Payment RPT Category: 85 - Capital Outlay 2016-2017 Actual 2017-2018 Adopted 2018-2019 Proposed $ 750,000 $ - $ - 251,163 - - Total Debt Services $ 1,001,163 $ - $ - 8830 - Capital - structure improvements $ 145,911 $ 745,000 $ - 8840 - Capital - equipment 71,312 - - 8850 - Capital - vehicles 39,941 45,000 - Total Capital Outlay $ 257,164 $ 790,000 $ - RPT Category: 99 - Transfers Out 8801 - Capital Funding Transfer $ - $ 242,170 $ 254,279 8802 - Capital Funding - 606,900 619,038 Total Transfers Out to Reserve $ - $ 849,070 $ 873,317 Total $ 4,086,367 $ 3,726,152 $ 3,421,394 23

Department 11 Finance Department 2016-2017 Actual 2017-2018 Adopted 2018-2019 Proposed Department: 11 - Finance RPT Category: 70 - Services & Supplies 7415 - Services - County of San Diego $ - $ 9,000 $ 9,000 Total Services & Supplies $ - $ 9,000 $ 9,000 RPT Category: 80 - Debt Service 8010 - Debt Service C.O.P. - Principal Payment 8011 - Debt Service C.O.P. - Interest Payment $ - $ 320,000 $ 330,000-230,773 218,985 Total Debt Services $ - $ 550,773 $ 548,985 Total $ - $ 559,773 $ 557,985 24

Department 12 Human Resources 2016-2017 Department Actual Department: 12 - Human Resources RPT Category: 60 - Salaries & Benefits 6056 - Education Incentive - Total Salaries & Benefits - 2017-2018 Adopted 2018-2019 Proposed $ $ - $ 15,000 $ $ - $ 15,000 RPT Category: 70 - Services & Supplies 7475 - Services - Other $ - $ 15,000 $ 15,000 Total Services & Supplies $ - $ 15,000 $ 15,000 Total $ - $ 15,000 $ 30,000 25

Department 13 Board of Directors 2016-2017 Department Actual Department: 13 - Board of Directors RPT Category: 60 - Salaries & Benefits 6010 - Salaries regular 19,297 2017-2018 Adopted 2018-2019 Proposed $ $ 13,125 $ 15,009 6225 - Social security medicare 1,351 1,277 1,148 Total Salaries & Benefits $ 20,649 $ 14,402 $ 16,157 RPT Category: 70 - Services & Supplies 7071 - Meetings $ 18,593 $ 6,188 $ 6,188 7075 - Memberships - - - 7415 - Services - County of San Diego - 9,375 46,875 7579 - Miscellaneous - 225 225 Total Services & Supplies $ 18,593 $ 15,788 $ 53,288 Total $ 39,242 $ 30,190 $ 69,445 26

Department 15 Support Services 2016-2017 Department Actual Department: 15 - Support Services RPT Category: 70 - Services & Supplies 7123 - Communication Equipment 35,843 2017-2018 Adopted 2018-2019 Proposed $ $ 24,000 $ 24,000 7180 - Utilities 92,070 83,650 83,650 7445 - Services - Communications / Dispatch - - 70,428 7550 - Vehicle Preventitive Maintenance 92,347 72,375 75,115 7551 - Vehicle Repairs 123,654 72,000 74,425 7560 - Fuel - Diesel 70,064 45,000 45,000 7561 - Fuel - Gas 20,441 18,750 18,750 7570 - Station Maintenance 114,055 200,160 102,944 Total Services & Supplies $ 548,473 $ 515,935 $ 494,312 Total $ 548,473 $ 515,935 $ 494,312 27

Department 21 Fire Prevention Department Department: 21 - Fire Prevention RPT Category: 60 - Salaries & Benefits 6035 - OT Coverage - training and support 2016-2017 Actual 2017-2018 Adopted 2018-2019 Proposed $ - $ - $ 3,300 Total Salaries & Benefits $ - $ - $ 3,300 RPT Category: 70 - Services & Supplies 7080 - Publications $ 2,616 $ 2,700 $ 2,700 7135 - Special department expenses 9,943 11,000 7,500 7415 - Services - County of San Diego 229,026 236,221 130,000 7450 - Services - Software Applications - - 3,500 Total Services & Supplies $ 241,585 $ 249,921 $ 143,700 Total $ 241,585 $ 249,921 $ 147,000 28

Department 22 Logistical Volunteer Group Department 2016-2017 2017-2018 2018-2019 Actual Adopted Proposed Department: 22 - Logistical Volunteer Group RPT Category: 70 - Services & Supplies 7135 - Special department expenses $ 5,295 $ 11,250 $ 11,250 7140 - Training 2,084 7,500 7,500 7180 - Utilities 2,641 3,500 3,500 7570 - Station Maintenance 6,294 5,000 5,000 Total Services & Supplies $ 16,313 $ 27,250 $ 27,250 Total $ 16,313 $ 27,250 $ 27,250 29

Department 62 Suppression 2016-2017 Department Actual Department: 62 - Suppression RPT Category: 60 - Salaries & Benefits 6010 - Salaries regular 3,082,640 2017-2018 Adopted 2018-2019 Proposed $ $ 2,655,500 $ 2,942,082 6033 - OT Coverage - Open - - 341,006 6034 - OT Coverage - leave 1,373,141 853,250 820,877 6035 - OT Coverage - training and support - 89,000 116,650 6036 - OT Coverage - emergency response - 5,250-6038 - OT Coverage - Fire Assignment - Reimburseable 145,928 255,000 255,000 6039 - OT Coverage-Nonreimbursed 57,631 70,000 70,000 6050 - Uniform allowance 36,000 36,002 36,000 6051 - Holiday Pay 109,275 99,500 106,976 6052 - FLSA Pay 109,690 83,000 104,036 6053 - Paramedic Incentive / ALS Pay 34,028 37,000 49,896 6054 - Paramedic Preceptor Pay - - - 6090 - Annual leave buyback 93,178 - - 6125 - PERS retirement 2,369,470 561,990 660,003 6126 - PERS retirement Unfunded Actuarial Liability - 792,675 960,310 6210 - Long term disability - - 5,328 6220 - Health and dental insurance 650,536 617,004 660,960 6221 - Health Insurance Retiree Benefits - 623,385 602,571 6225 - Social security medicare - 61,316 58,370 6235 - Worker's compensation expense - 208,498 259,286 6325 - Retroactive pay 236,804 - - Total Salaries & Benefits $ 8,298,320 $ 7,048,370 $ 8,049,351 30

Department 62 Suppression (Continue) Department 2016-2017 Actual 2017-2018 Adopted 2018-2019 Proposed RPT Category: 70 - Services & Supplies 7070 - Fire Department Sustenance $ - $ - $ - 7100 - Uniforms 948 17,325 3,100 7110 - Personal Protective Equipment (PPE) 78,937 56,250 60,500 7115 - SCBA Equipment 19,145 14,960 14,960 7121 - Fire Hose 11,244 17,000-7122 - Rescue Equipment 5,221 5,000 7,500 7130 - Non-inventory equipment 30,182 11,800 27,000 7140 - Training 103,287 83,720 104,460 7450 - Services - Software Applications 16,651 - - 7540 - Medical supplies 150,057 14,704-7541 - Medical Waste Control 2,111 250-7545 - ALS Engine 926 8,000-7555 - Equipment maintenance - 7,700 7,500 7580 - Emergency Incident-Vehicle - 75,000 75,000 7581 - Emergency Incident-Admin Overhead 51 37,500 37,500 7582 - Emergency Incident-Other - 5,000 5,000 7585 - Non-Reimbursable Incidents - Vehicles 99 10,000 10,000 7586 - Fire Assign. Non-reimbursed-Admin - 10,000 10,000 7587 - Fire Assign. Non-reimbursed-Other 1,448 10,000 10,000 Total Services & Supplies $ 420,307 $ 384,209 $ 372,520 RPT Category: 85 - Capital Outlay 8840 - Capital - equipment $ - $ 755,000 $ - 8850 - Capital - vehicles - 650,000 - Total Capital Outlay - 1,405,000 - Total $ 8,718,628 $ 8,837,579 $ 8,421,871 31

Department 63 Emergency Medical Services (EMS) 2016-2017 Department Actual Department: 63 - Emergency Medical Services(EMS) RPT Category: 60 - Salaries & Benefits 6010 - Salaries regular - 2017-2018 Adopted 2018-2019 Proposed $ $ 969,625 $ 813,044 6033 - OT Coverage - Open - - - 6034 - OT Coverage - leave - 289,250 184,412 6035 - OT Coverage - training and support - 44,500 58,250 6036 - OT Coverage - emergency response - 1,750-6050 - Uniform allowance - 13,002 12,000 6051 - Holiday Pay - 27,500 29,563 6052 - FLSA Pay - 23,000 26,168 6053 - Paramedic Incentive / ALS Pay - 12,750 12,000 6054 - Paramedic Preceptor Pay - 3,000 3,273 6090 - Annual leave buyback - 27,486-6125 - PERS retirement - 158,942 115,960 6126 - PERS retirement Unfunded Actuarial Liability - 292,972 320,103 6210 - Long term disability - - 1,728 6220 - Health and dental insurance - 243,588 220,320 6221 - Health Insurance Retiree Benefits - 242,427 200,857 6225 - Social security medicare - 20,829 15,469 6235 - Worker's compensation expense - 75,795 71,654 Total Salaries & Benefits $ - $ 2,446,416 $ 2,084,801 32

Department 63 Emergency Medical Services (EMS) (Continue) Department 2016-2017 2017-2018 2018-2019 Actual Adopted Proposed RPT Category: 70 - Services & Supplies 7035 - Telephone $ - $ 7,500 $ 7,500 7042 - Cellular phones - 3,750 3,750 7070 - Fire Department Sustenance - 1,563 1,563 7071 - Meetings - 4,125 4,125 7075 - Memberships - 600 600 7100 - Uniforms - 5,775 700 7110 - Personal Protective Equipment (PPE) - 18,750 20,000 7115 - SCBA Equipment - 2,040 2,040 7123 - Communication Equipment - 8,000 8,000 7130 - Non-inventory equipment - 7,200 7,200 7135 - Special department expenses - 3,750 3,750 7140 - Training - 49,990 23,875 7180 - Utilities - 18,550 18,550 7250 - General liability insurance - 13,750 13,750 7305 - Office supplies - 3,250 3,250 7310 - Postage - 500 500 7330 - Household Cleaning Supplies - 2,500 2,500 7405 - Services - Auditing - 4,500 4,500 7415 - Services - County of San Diego - 34,375 46,875 7440 - Services - Legal - 9,050 9,050 7445 - Services - Communications / Dispatch - 112,476 124,380 7446 - Services - Computer Maintenance - 11,500 11,500 7450 - Services - Software Applications - 37,350 34,100 7455 - Services-Physical Appraisals - 7,500 7,500 7460 - Services-Professional Counsultants - 12,500 12,500 7475 - Services - Other - 8,125 8,125 7525 - Services - Laundry and Linen - 1,125 1,125 7540 - Medical supplies - 132,336 132,336 7541 - Medical Waste Control - 2,250 2,250 7550 - Vehicle Preventitive Maintenance - 37,125 39,860 7551 - Vehicle Repairs - 25,000 27,425 7555 - Equipment maintenance - 24,300 24,300 7560 - Fuel - Diesel - 40,000 40,000 7561 - Fuel - Gas - 6,250 6,250 7570 - Station Maintenance - 14,523 15,102 7579 - Miscellaneous - 75 75 Total Services & Supplies $ - $ 671,952 $ 668,906 33

Department 63 Emergency Medical Services (EMS) (Continue) Department 2016-2017 Actual 2017-2018 Adopted 2018-2019 Proposed RPT Category: 85 - Capital Outlay 8840 - Capital - equipment $ 55,641 $ - $ - 8850 - Capital - vehicles 121,178 140,000 - Total Capital Outlay $ 176,819 $ 140,000 $ - RPT Category: 99 - Transfers Out 8803 - Capital Funding Transfer $ - $ 205,662 $ 209,775 Total Transfer Out to Reserves $ - $ 205,662 $ 209,775 Total $ 176,819 $ 3,464,030 $ 2,963,482 34

Department 64 LKS Emergency Medical Services Department 2016-2017 2017-2018 2018-2019 Actual Adopted Proposed Department: 64 - LKS Emergency Medical Services RPT Category: 70 - Services & Supplies 7130 - Non-inventory equipment $ - $ - $ 1,800 7140 - Training - - 5,375 7540 - Medical supplies - - 14,704 7541 - Medical Waste Control - - 250 7545 - ALS Engine - - 8,000 7555 - Equipment maintenance - - 2,700 Total Services & Supplies $ - $ - $ 32,829 Total $ - $ - $ 32,829 35

APPENDIX GENERAL FUND RESERVE POLICY 36

Lakeside Fire Protection District General Fund Reserve Policy PURPOSE The purpose of maintaining adequate reserves is to ensure that there are appropriate levels of working capital in the District s funds to mitigate current and future risks (e.g., revenue shortfalls and unanticipated expenses) and to ensure stable services and fees. Properly designed policies send a positive signal to the community of taxpayers, bondholders, rating agencies, and regulatory agencies that the Board is committed to the District s long-term financial health and viability. Prudent financial management and best practices dictate that the District maintain appropriate reserves for emergency use, capital projects, obligations accruing on a current basis that will be paid in the future, and those required as a result of legal or external requirements. POLICY It is the policy of the Lakeside Fire Protection District to identify the various classifications of the District s governmental fund balances in its annual financial report and annual budget. These classifications take into consideration the District s long-term infrastructure needs, non-current liabilities, economic uncertainties, and possible catastrophic events. The District policy is to maintain transparency by maintaining appropriate reserve levels and categories based on prudent long-term financial and strategic goals. The District policy is to maintain a minimum target of fifty percent (50%) of property tax revenue in unrestricted General Fund Reserves order to meet the cash flow needs of the District. OBJECTIVES To establish sound formal fiscal reserve policies to ensure strong fiscal management to guide future District decisions. To build adequate reserves over time. This action will provide the District with resources to help stabilize the District s finances, and position it more easily to absorb economic downturns or large-scale emergencies. To provide funding for current and future replacement of existing assets as they reach the end of their useful lives. To assist the District in meeting its short-term and long-term obligations and to ensure that the District maintains the highest possible credit rating. 1 lks reserve policy_160810.docx 5/3/2017

OVERVIEW Government Accounting Standards Board Statement NO. 54(GASB 54) requires that fund balances be classified as either nonspendable, restricted, committed, assigned or unassigned funds. The nonspendable and restricted classifications are subject to requirements outside the District s control for financial planning purposes. Nonspendable resources are inherently nonspendable such as prepaid items and inventories. Restricted resources are of no discretionary value given the restrictions placed upon them by a third-party outside of the District s control (i.e. bond payment reserve requirement and grants). The District s Reserve Policy will only address the three classifications that are subject to control by the Governing Board, which are: Committed Fund Balance: The committed fund balance classification reflects specific purposes pursuant to constraints imposed by formal action of the District s highest level of decision-making authority (generally the Governing Board). Also, such constraints can only be removed or changed by the same form of formal action. Assigned Fund Balance: The assigned fund balance classification reflects amounts that are constrained by the government s intent to be used for specific purposes, but meet neither the restricted nor committed forms of constraint. Unassigned Fund Balance: The unassigned fund balance classification is the residual classification for the general fund only. It is also where negative residual amounts for all other governmental funds would be reported. PROCEDURE This section provides the protocol for maintaining the unrestricted reserves or spendable General Fund balances. This policy requires the assignment to be made as part of the annual budget and Five Year Capital Funding Plan adoption which identifies the reserves needed. Any requests for the use of reserve funds will be accompanied by a current status report of the affected reserve fund and impact on the recommended target balance. Reserve impacts will be identified as a part of the quarterly budget reports. Committed Reserve Funds 1. Economic/Budget Stability Reserve Committed funds describe the portion of the fund balance that is constrained by limitations imposed by the Lakeside Fire Protection District Governing Board (Board). The Economic/Budget Stability Reserve is intended to offset quantifiable revenue/expense uncertainty and help stabilize service levels through economic cycles. The Board imposed limitation must occur no later than the close of the fiscal year and remains binding unless removed under the same manner. A commitment is made by Board resolution that states the amount and purpose of the commitment. 2 lks reserve policy_160810.docx 5/3/2017

Generally, appropriations and access to these funds will be reserved for emergency situations. Examples of such emergencies include, but are not limited to: Reduction in revenue equal to or greater than 10% of adopted General Fund appropriations An unplanned, major, catastrophic event such as a natural disaster requiring expenditures over 10% of General Fund adopted appropriations Unfunded and/or unpredictable State or Federal legislative or judicial mandates Any other unforeseen event that causes the District to expend funds in excess of 10% of General Fund adopted appropriations Recommendation: Maintain a target reserve balance of 25% of annual property tax revenue. The reserve amount is determined by estimating the level of financial risk associated with the economy. If the Economic/Budget Stability Reserve falls below a minimum of 25% of annual property tax revenue, the Fire Chief will prepare a plan within three months of the submission of the Audited Financial Report to replenish the Reserve balance to the 25% level within 48 months. The formal action required to commit fund balance and/or access committed funds shall be by board resolution requiring 4/5 majority vote. Assigned Reserve Funds 2. Budget Stability Reserve Assigned funds describe the portion of General Fund reserves that reflect the use of resources to provide a source of funding for near-term needs. The District s annual operating budget has inherent risk for fluctuations due to unusual circumstances i.e. extended leave due to injury or illness, or more fire activity than is budgeted for in a normal year. The Budget Stability Reserve provides for short-term one-time funding for extraordinary items that are not part of the normal operating budget. These funds are not to be used for recurring expenses. Recommendation: Maintain a target reserve balance of 2.5% of annual property tax revenue. If the Budget Stability Reserve falls below 1%, the Fire Chief will prepare a plan within three months of the submission of the Audited Financial Report to replenish the Leave Liability Reserve to the 2.5% level within 24 months. 3. Leave Liability Reserve Assigned funds describe the portion of General Fund reserves that reflect the use of resources to provide a source of funding for near-term and long-term needs. The District accrues liability based on the unused leave benefit of the employees which is a combined near-term and long-term liability. Recommendation: Maintain a target reserve balance of 100% of the annual accrued liability as determined by the annual audited financial statements. If the Leave Liability Reserve falls below 100%, the Fire Chief will prepare a plan within three months of the submission of the Audited Financial Report to replenish the Leave Liability Reserve to 100% level within 24 months. 3 lks reserve policy_160810.docx 5/3/2017

4. Capital Equipment Reserve Assigned funds describe the portion of General Fund reserves that reflect the use of resources to provide a source of funding for near-term and long-term needs. The District needs to purchase equipment and vehicles in order to carry out the mission and strategic objectives as directed by the Board. A 5-Year Capital Funding Plan must be maintained and considered when calculating the annual reserve requirements for capital equipment. Recommendation: Maintain a target reserve balance of 5% of the estimated value of the District s equipment and vehicles as recorded on the annual audited financial statements. If the Capital Equipment Reserve falls below 5%, the Fire Chief will prepare a plan within three months of the submission of the Audited Financial Report to replenish the Capital Equipment Reserve to 5% level within 24 months. 5. Capital Facilities Reserve Assigned funds describe the portion of General Fund reserves that reflect the use of resources to provide a source of funding for near-term and long-term needs. The District needs essential services buildings in order to carry out the mission and strategic objectives as directed by the Board. A 5-Year Capital Funding Plan must be maintained and considered when calculating the annual reserve requirements for capital facilities. Recommendation: Maintain a target reserve balance of 10% of the estimated replacement value of the District s facilities. If the Capital Facilities Reserve falls below 5%, the Fire Chief will prepare a plan within three months of the submission of the Audited Financial Report to replenish the Capital Equipment Reserve to the 10% level within a maximum of 60 months. 6. Fire Mitigation Fee Reserve Assigned funds describe the portion of General Fund reserves that reflect the use of resources to provide a source of funding for near-term and long-term needs. The District participates in the San Diego County Fire Mitigation Fee Program and receives revenue on a quarterly basis from the County. The funds must be used for capital facilities and equipment to serve the development which paid the fees. The Fire Mitigation Fees will first be applied to reimburse District General Funds that were used to make-up a shortfall of the fee portion of prior years. Recommendation: Maintain a target reserve balance based on the Annual Fire Mitigation Fee Expenditure Report which is due to the County of San Diego annually in August. The report will identify the funds that need to be maintained in the Fire Mitigation Fee Reserve. The 2015 report showed a negative balance of $2,237,000 which represents the amount of Fire Mitigation Fee Revenue that is due to the General Fund for projects already completed and approved. Based on current revenue it is estimated that the Mitigation Fee revenue will be transferred to the General Fund for the next 15-20 years to reimburse for projects completed. 7. Self-Insured Retention Reserve Assigned funds describe the portion of General Fund reserves that reflect the use of resources to provide a source of funding for near-term and long-term needs. The District is a member of Public Agency Self Insurance System (PASIS) JPA for workers compensation which requires that the District maintain a Self-Insurance Retention (SIR) amount for payment of claims 4 lks reserve policy_160810.docx 5/3/2017

prior to the Excess Insurance coverage. The SIR amount is a liability that is calculated by the PASIS third-party administrator on all outstanding claims. The SIR amount is the estimated cost of the claim over the life of the claim which is the long-term liability of the claim. Recommendation: Maintain a target reserve balance of a minimum 100% of the estimated SIR amount as estimated by the PASIS TPA at the end of the Fiscal Year. The reserve amount is calculated by subtracting the liability booked on the annual audited financial report from the SIR liability for estimated claims calculated by the third party administrator. If the Self-Insured Retention Reserve falls below 100%, the Fire Chief will prepare a plan within three months of the submission of the Audited Financial Report to replenish the Self-Insured Retention Reserve to 100% level within 24 months. 8. HCFA Liability Reserve Assigned funds describe the portion of General Fund reserves that reflect the use of resources to provide a source of funding for near-term and long-term needs. The District is a member of Heartland Communications Facility Authority (HCFA) JPA to provide emergency communications. HCFA has identified long-term liability amounts for each of the member agencies related to the employee benefit costs and emergency radio system backbone. Recommendation: Maintain a target reserve balance of 100% of the liability identified by HCFA in their audited annual financial report. The cost of the emergency radio system backbone may need to be estimated based on a reasonable assessment of the cost & life of the system. The Fire Chief will assess the utilization and need for this reserve on an annual basis. If the HCFA Liability Reserve falls below 100% if the targeted amount, the Fire Chief will prepare a plan within three months of the submission of the District s Audited Financial Report to replenish the HCFA Liability Reserve within 24 months. Unassigned Reserve Funds The General Fund may have net resources in excess of what is classified in nonspendable, restricted, committed, or assigned. This amount is presented as the Unassigned Fund Balance amount on the annual financial report. This policy dictates that any amount of fund balance will be classified as Unassigned after funding the Economic/Budget Stability Reserve, plus the various Assigned Reserves made in accordance with the preceding section. Use of Resources The District operates on reserves for the first five months of the year due to the timing of property tax apportionment revenue by the County. General Fund Reserves will be used for working capital in the order of Unassigned, Assigned, and Committed for cash flow purposes, and the reserve funds will be replenished based on the annual budgeted requirement as soon as adequate property tax revenue is received. 5 lks reserve policy_160810.docx 5/3/2017