Report to Lehigh Acres Fire Report to Lehigh Acres Fire District CommissionersDistrict Commissioners

from thefrom the

Blue Ribbon CommitteeBlue Ribbon CommitteeJuly 14,2009July 14,2009

Committee Purpose

To Review the current financial status and make recommendations to remedy the financial crisis while maintaining adequate fire and rescue service to District constituents.

Present Situation• LAFD tax revenues in 2009-10 will be dramatically

reduced due to a 48.7% drop in property values.• Requested Budget 2008-09: $28,972,426• Total Revenue in 2008-09: $17,745,047• Required Transfer from

Reserve Funds to Balance $11,227,379

Financial Outlook for 2009-10

• 2009/10 “Business as usual Budget” (union 3% contract raise) $29.24 Million

• 2009/10 Projected Revenue $11.06 Million• Projected Budget Shortfall $18.18 Million• Using 100 % of Remaining Reserves $11.00 Million• Projected Budget Shortfall $ 7.18 Million

The District is NowBankrupt & Unable to Operate

We are Out of BusinessCitizens Lives and Property would be at Risk

Our ProcessOur Process

Our Process

-Understand

-Review

-Tear Apart

-Rebuild

-Leave No Stone Unturned

-Recommendations

Committee PositionCommittee Position

Committee Position• These ARE Extraordinary Times.

• Times dictate EVERYONE do more with less.

• CHANGE is Not Popular.

• Raising the Tax Rate is NOT the answer.

• TOGETHER we can survive this Crisis.

Our RecommendationsOur Recommendations

Our Recommendations

2009/10 A Balanced Budget Not to Exceed $13.305 Million

Based on the Following Revenues:• $9.283 Million in Ad Valorem Taxes• $1.799 Million in Ambulance Billing• $0.142 Million in Misc. Income• $2.081 Million in Reserves

Our Recommendations

Year Requested Budget (Not to Exceed)

• 2009/10 $13.305 Million

• 2010/11 $13.049 Million

• 2011/12 $13.021 Million

• 2012/13 $13.074 Million

What you can ExpectWhat you can Expect

What you can Expect• 5 Stations with 5 ALS Engines & 5 Ambulances.

• 90 Fire Fighters, Paramedics & EMT Positions.

• 9 Administrative positions including Battalion Chiefs.

24/7 Protection

Changes to ExpectChanges to Expect

Changes to Expect• Personnel Staffing & Compensation

• Operations

• Union Contract Changes

PersonnelPersonnel

PersonnelEffective 8/1/2009• Commissioners to Reduce Compensation to Zero.• Provide for 90 Fire Fighter, Paramedic & EMT Positions,

a Reduction of 17 Employees.• Provide for a Maximum of 9 Administrative Employees

including Battalion Chief Positions, a Reduction of 6 Employees.

Effective 10/1/2009• Reductions in Overtime and Eliminate Holiday Pay.• Reduce Payroll/Benefits to Reflect a 10% Reduction in

Total Compensation.

OperationsOperations

Operations• Freeze All Expenditures Immediately.• Sale of Excess Vehicles.• Develop a New Emergency Medical Policy to

Reduce/Eliminate out of District Transport.• Develop a Policy to Reduce/Stop the use of

District Vehicles to Run Errands.• Develop a Quarterly “Rolling” Budget Process .• Negotiate Union Contract for 1 year by using a

Professional and Not District Personnel.

Union ContractsUnion Contracts

Union Contracts • LAFD is Compensated in Top 90% of Paid

Personnel in SWF Districts.• This is a Luxury We can no Longer Afford.• When LAFD was Flush with Cash, Spending

was Out of Control.• Personnel Expenses make up 86% of District

Budget.• We are No Longer Flush with Cash.• We can No Longer Pay in the Top 90%.• We can No Longer Devote 86% of the Budget to

Personnel Costs.

Committee RecommendationsCommittee Recommendations

Committee Recommendations

• Adopt the Budget We Have Provided.

• Our 1st Alternative Recommendation.– Declare a Fiscal Urgency as Prescribed in

Florida Statues.

• Our 2nd Alternative Recommendation.– Privatize Fire Fighting & Emergency Services.

ConclusionConclusion

Conclusion• Eliminate 17 Fire Fighters Not 30.

• Eliminate 6 Administrators Not 11.

• That is 18 Saved Jobs.

Thank You Thank You Commissioners for Allowing us

the Time and Access to do this Study.

Thank Chief Adams and Financial Specialist Anita Kressel for their Assistance.

FinallyOur committee is certain that these recommendations are not only fiscally sound, but are sound from an operational standpoint as well, and most importantly are in keeping with the mission and purpose of the Lehigh Acres Fire District.

Respectfully submitted on July 14, 2009 by the Blue Ribbon Committee:

Rick Anglickis Bruce Boyd Laurie Jerriey

Jeff McMullen Mike Wesner Patti Wheaton