cares • finance 101
DESCRIPTION
An overview of theTRANSCRIPT
WelcomePlease introduce yourself to others at your table
Put on a name tag
Complete the information on the sign-in sheet
Operational Guidelineso Meetings will not be conducive to the format of an open
forum or debate.
o Meetings are work sessions that allow for the free exchange of ideas.
CARES Chargeo Create a long-range plan to meet the community’s level
of service and protection expectations.
Sign-in Sheet
I Have a Question!
• Fill Out Form
• Call:
• 636-447-6655
• Email:• [email protected]
• Ask During Small Group Work Time
CARES Onlineo www.CARESforCFPD.com
o Like us on Facebookowww.Facebook.com/CottlevilleFire
Meeting Materialso Cover Sheet
o Agenda
o Meeting #4 Summary Documents
o Verbatim Responses
o Executive Summary
o Informational PowerPoint Presentation
o Work Activity
CARES Open HousesDate Time Station Address
Tuesday, Nov. 29 4 – 8 p.m. Station #3 6310 Weldon Spring Rd.
Wednesday, Nov. 30 4 – 8 p.m.
Station #4 4340 Towers Rd.
Saturday, Dec. 3 11 a.m. – 5 p.m. Station #1 1385 Motherhead Rd.
Sunday, Dec. 4 Noon - 4 p.m. Station #2 4065 Old Hwy. 94 South
CARES Speakerso Available to speak at community, church,
neighborhood and school meetings
CARES MeetingsDate Meeting Topic
Sept. 8 Kick-Off Meeting
Sept. 22 Staffing
Oct. 6 Equipment
Oct. 20 Operations, Facilities & Programs
Nov. 3 Fire District Finance 101Nov. 17 Draft Community Recommendations Presented
Week of Nov. 28 - Draft Recommendations Presented At Open Houses At Each Fire Station.
Dec. 8 Final Recommendations Presented
Finance 101
Chief Rob Wylie
Quick Reviewo District Protects 38 sq miles 40,000 Residents
o We provide Fire Protection and BLS service through 2 Divisions
o 1.Code Enforcement o Inspections / Public Education
o 2. Operationso Emerg. Response/Training/Maintenance 4 Stations
Cottleville Fire DistrictOrganizational Structure
RSMO 321
Missouri State Statute – Income Sources for Fire Districts
• Fire Districts in MO are limited as to how income can be generated to operate the District
• Sources Authorized by State Statute• Property Tax• Sales Tax• Fees from permits
Source: MO Revised Statutes RSMO321
PROPERTY TAXo Assessed Valuation = A percentage of the
True Market Value of a Propertyo Four Types of Property:
oResidential 19%oCommercial 32%o Agricultural 12%o Personal Property 33 1/3%
Property Tax CalculationAssessed Valuation x Tax Rate
100
Home = $200,000 Total Tax Rate = .6275 ¢
Assessed Value = $38,000 (19% x $200,000)
$38,000 x 0.6275 = $238.00 per year
100
$19.87 per month - .65 ¢ per day
Funding Source – Tax Rateo 2011Real-Estate and Personal Property Tax
o General Fund
o 0.5048 ¢
o Pension
o 0.0885 ¢
o Debt Service
o 0.0342 ¢
o Total 2008 Tax Rate –0.6275 ¢ (3.6% Reduction from 2010)
Residential 67%Com-mercial
16%
Personal 12%
Railroad&
Utilities5%
Assessed Valuation Cottleville FPD 2011
Source: St. Charles County Assessor’s Office
REVENUE SOURCESGeneral Fund 2011
97%
3% 2%
Revenue Source
Property TaxInterestPermits & Fees
Property Tax Reassessmento St. Charles County reassesses properties once every two
years o Resulting in growth or decline in assessment.
o In non-reassessment years the change in assessment to a property is nominal.
o Properties within the District experienced an average decrease of -3.7% in the 2011 Reassessment Year.
Source: St. Charles County Assessor’s Office
Hancock Amendmento Amendment 5, known as the Hancock
Amendment, was approved in 1980.
o The Amendment limits a taxing authority’s operating revenue growth to the lesser of:oGrowth in Assessed Valuation
oConsumer Price Index (CPI)
o Excludes New Construction the First YearSource: Article X Sections 18-24 of the Missouri Constitution
Consumer Price IndexoConsumer Price Index (CPI) is a measure of
the average price of consumer goods and services purchased by households. It is one of several price indices calculated by national statistical agencies.
Local Operating Taxes
Year Assessed Value (AV)
AV Growth Reassessment Revenue Growth
2004 $ .882 billion (CPI)
2005 $ 1.028 billion 16.5% 3.4 %
2006 $ 1.076billion 4.6 % 3.2%
2007 $ 1.211 billion 12% 2.4
2008 $ 1.240 billion 2.3 % 2.3 %
2009 $1.183 billion -4.5% 0
2010 $ 1.175 billion -6.8% 0
2011 $1.132 billion -3.6% 0
Source: St. Charles County Assessor’s Office CPI Data: Bureau of Labor Statistics
Avg. 1.6% Increase 2005-2011
Avg. 3.0% Increase2005-2011
9% 2.5%
Cottleville Community Fire District
Assessed Valuation
2007$1.21
2008$1.24
2009 $1.18 2010
$1.18
2011$1.13A
sse
sse
d V
alu
atio
nIn
Bill
ion
s
Source: St. Charles County Assessor’s Office
Property Tax RevenueReal Estate and Personal Property Tax Represent the Majority of Budgeted Revenue
2007 2008 2009 2010 2011 2012$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$5,680,417
$7,306,718
$5,625,510 $5,757,251 $5,657,587 $5,654,587
Expense Growth
$0.504
8
$0.088
5$0.0342
General
Pension
Bond
2011 Tax Rate Breakdown
Total Rate for 2011 .6275/$100 Assessed Vale
Expenses
*St. Charles County Sheriff's Dept.
**FH School District ***St. Charles County Ambulance
Dist.
Cottleville FPD88%
89%
90%
89% 89%
90%
89%
% of Budget Utilized for Personnel Costs
% of Budget Utilized for Personnel Costs
Source:*County Finance Director**FHSD 2011-2012 Budget*** SCCAD Finance Director
Operational Costs:
$514,000/mo
In 1970, less than 100,000 people lived in St. Charles County. Current U.S. Census estimates place the local population above 353,000 with nearly 67,000 people moving here since 2000.
More new residents moved into St. Charles County than anywhere else in Missouri from 2008 to 2009, according to the U.S. Census. The community attracted 5,772 new residents in that year
Source: Economic Development Center (EDC) of St. Charles County Missouri
Population Growth in St. Charles County
St. Charles County Missouri Community Development Department Planning and Zoning Division
St. Charles County experienced a 150% increase in population from 1980 to 2010
2002 Discovered Growing Deficit and Dependency on Deficit Spending
Implemented Plan to Balance Budget, Restore GR Budget and Eliminate Short Term Debt
Citizens Approve Bond to Provide for Capitol Needs of the District Relieve Pressure on GR
History
Then & Nowo Look back 25 Years
o 4 Employees
o 9,400 Resident *Approximate based on overall County Population
o 400 Calls for Service
o Look at Todayo 50 Employees
+115%
o 2700 Calls for Service +575%
o 40,000 Residents +325%
o Aging Demographics
Calls f
or Servi
ce
Population
Number of R
esponders
05,000
10,00015,00020,00025,00030,00035,00040,000
400
9,400
4
2,700
40,000
47
19862011
Then & Nowo Look back 25 Years
o 1986: 0.75/$100 Assessed Value Voter Approved Tax Rate for General Revenue
o Assessed Valuation $112,400,000
o Look at Todayo 0.5048/$100 Assessed Value Hancock Limit Tax Rate for General
Revenue *Decrease 0.24
o Assessed Valuation 1.13 Billion
5 Year Plan to Balance Budget 2002 Pay Cuts Slash Essential Spending:
Training, Public Fire Ed., Staff Positions Zero Out Capitol Budget
5 Year Pay Freeze Utilization of Bond Proceeds for Capitol Items Hire CPA Revamp Budget Procedures
5 Year Plan to Balance Budget
Results:New Administration in 2005 Improved Budget Procedures
• Spending Controls• Balanced Budget in 2006• Budget Operating Reserve in 2007,2008,2009,2010• Earmarking Operating Reserve Funds• Inclusive Budget Planning• Multi-Year Labor Agreements• 2011 Pay Concessions
5 Year Plan to Balance Budget Lasting Results in 2011:
Key Essential Function Categories not Restored
Staff Reductions not Restored
New Construction Growth in the District Stalled
Nominal Economic Conditions
2008• Economy Tanks
• Development Stops
• Assessments Drop
• Expenses Increase
• Revenues Drops & Level
2007$1.21
2008$1.24
2009 $1.18 2010
$1.17
2011$1.13
2005 2006 2007 2008 2009 2010 2011 *2012 *2013 *2014 *2015
-2500000
-2000000
-1500000
-1000000
-500000
0
500000
1000000
1500000
2000000
2500000
10Year Budget Projection
Budget Surplus (Deficit)Operating Reserve Balance(Savings Account)
*Projected
Source: Botz & Deal, CPA Rogden & Assoc., CPA
Looking at Biggest Expense Categories
Personnel Costs: 89% of Budget• Wages: Firefighter- $22.53/HR. Works 56hrs/week (increased a
total of $0.23/hr. over last 10 years)
• Health Insurance: Average Rate Increases of 12-15% AnnuallyOffset Premium Increase of 25-35% by Shifting Additional Payment Responsibility to Employees(Higher Co-Pays, Lower Drug Benefit, Employee Responsible Higher Deductibles
Workers Comp. Insurance: Employee Wellness Plan and Commitment to Safety Practices Resulted in Very Low Experience Mod. And Reduction in Premiums of nearly $10,000
Wage Comparison in St. Charles County
St. Charl
es FD
Wentzv
ille FP
D
O'fallo
n FPD
Central C
ounty FP
D
Cottleville FP
D
Lake
STL F
PD
New Melle
FPD
$-
$10.00
$20.00
$30.00 $25.85 $24.08 $23.41 $23.41
$22.53
$17.19 $15.11
Current Hourly Rate of Paid Fire Organizations
Looking at Biggest Expense Categories
Personnel Costs: (Continued)• Sick Time: 37% Under Budget YTD 2011
• Un-Scheduled Overtime: 26% Under Budget YTD 21011Schedule Modification to 48/96 Budget AwarenessModification of Work Rules
Population Demand for Service
Number of Responders
325%
575%
115%
From 1986 to 2010
Expenses Revenue
Avg. 1.6%In Last 5 Years
Assessed Value
Avg. -.2% In Last 5 Years
28%
2005-2011
1986
2036
Being Proactive
Being Proactive• Address the Issues
• Long Range Projections• Voluntary Pay Concessions• Pay Freeze
• Seek Public Input• What Does Community See as Important• What Level of Service is Acceptable
• Formulate a Plan• Take Community Input & Staff Recommendations to Elected
Officials and the Public
What’s Next?• Community Input
• What Do You Want Your Fire District to Look Like?
• What Does Community Deserve?• Are We Reflective of the Community We
Serve?
Small Group Work Activity
Select Recorder & Spokesperson
o Recorder Responsibilitieso Complete the requested information on your
group’s worksheet
o Spokesperson Responsibilitieso Facilitate Discussion
o Keep Group Focused/On Task
o Report Group’s Information
Complete the Worksheet o Make sure the information recorded on the
worksheet reflects consensus of the group
o Monitor progress to complete the worksheet in allotted time
o Only the group recorder’s worksheet will be collected
Small Group Work Activityo Task #1
o Based on the information provided in tonight’s presentation, what most surprised you? What most concerned you? oBiggest Surprise:
oBiggest Concern:
Small Group Work Activityo Task #2
oBased upon the information your group learned about the Cottleville Fire Protection District’s financial situation, what options should be considered to address future financial challenges?
Small Group Work Activityo Task #3
oWhat additional questions does your group have about the District’s finances?
Work Activity Reportingo What was your group’s biggest surprise?
o What is one option your group thinks should be considered to address future financial challenges?
Thank You!
Next Meeting: Nov. 17
Topic: Draft Recommendations