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CARES • Finance 101

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CARES • Finance 101

  1. 1. WelcomePlease introduce yourself to others at your table Put on a name tag Complete the information on the sign-in sheet
  2. 2. CARES Chargeo Create a long-range plan to meet the community’s level of service and protection expectations.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.
  3. 3. Sign-in Sheet
  4. 4. I Have a Question!• Fill Out Form• Call: • 636-447-6655• Email: • CARES@cottlevillefpd.org• Ask During Small Group Work Time
  5. 5. CARES Onlineo www.CARESforCFPD.como Like us on Facebook o www.Facebook.com/CottlevilleFire
  6. 6. Meeting Materialso Cover Sheeto Agendao Meeting #4 Summary Documents o Verbatim Responses o Executive Summaryo Informational PowerPoint Presentationo Work Activity
  7. 7. CARES Open HousesDate Time Station AddressTuesday, Nov. 29 4 – 8 p.m. Station #3 6310 Weldon Spring Rd. 4 – 8 p.m.Wednesday, Nov. 30 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
  8. 8. CARES Speakerso Available to speak at community, church, neighborhood and school meetings
  9. 9. CARES MeetingsDate Meeting TopicSept. 8 Kick-Off MeetingSept. 22 StaffingOct. 6 EquipmentOct. 20 Operations, Facilities& ProgramsNov. 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
  10. 10. Finance 101 Chief Rob Wylie
  11. 11. Quick Reviewo District Protects 38 sq miles 40,000 Residentso We provide Fire Protection and BLS service through 2 Divisions o 1.Code Enforcement o Inspections / Public Education o 2. Operations o Emerg. Response/Training/Maintenance 4 Stations
  12. 12. Cottleville Fire DistrictOrganizational Structure
  13. 13. RSMO 321
  14. 14. Missouri State Statute –Income Sourcesare limited as Districts • Fire Districts in MO for Fire 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
  15. 15. PROPERTY TAXo Assessed Valuation = A percentage of the True Market Value of a Propertyo Four Types of Property: o Residential 19% o Commercial 32% o Agricultural 12% o Personal Property 33 1/3%
  16. 16. Property Tax CalculationAssessed Valuation x Tax Rate 100Home = $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
  17. 17. 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)
  18. 18. Assessed Valuation Cottleville FPD 2011 Railroad & Utilities 5% Personal 12% Commercial 16% Residential 67% Source: St. Charles County Assessor’s Office
  19. 19. REVENUE SOURCES General Fund 2011 Revenue Source3% 2% Property Tax Interest Permits & Fees 97%
  20. 20. 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
  21. 21. 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: o Growth in Assessed Valuation o Consumer Price Index (CPI) o Excludes New Construction the First Year Source: Article X Sections 18-24 of the Missouri Constitution
  22. 22. Consumer Price Index o Consumer 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.
  23. 23. Local Operating Taxes Year Assessed Value AV Growth Reassessment (AV) 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 % 9% 2.3 % 2.5% 2009 $1.183 billion -4.5% 0 2010 $ 1.175 billion -6.8% 0 2011 $1.132 billion -3.6% 0 Avg. 3.0% Increase Avg. 1.6% Increase 2005-2011 2005-2011Source: St. Charles County Assessor’s Office CPI Data: Bureau of Labor Statistics
  24. 24. Cottleville Community Fire District Assessed Valuation 2008Assessed Valuation $1.24 2007 In Billions $1.21 2009 2010 $1.18 $1.18 2011 $1.13 Source: St. Charles County Assessor’s Office
  25. 25. Property Tax RevenueReal Estate and Personal Property Tax Representthe Majority of Budgeted Revenue$8,000,000 $7,306,718$7,000,000 $5,680,417 $5,625,510 $5,757,251 $5,657,587 $5,654,587$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000 $0 2007 2008 2009 2010 2011 2012
  26. 26. Expense Growth
  27. 27. 2011 Tax Rate Breakdown $0.0342 $0.0885 General Pension Bond $0.5048 Total Rate for 2011 .6275/$100 Assessed Vale
  28. 28. Expenses
  29. 29. % of Budget Utilized for Personnel Costs90% 90%89% 89% 89% 89% % of Budget Utilized for Personnel Costs88% *St. Charles **FH School ***St. Charles Cottleville FPD County District County Sheriffs Dept. Ambulance Dist. Source: *County Finance Director **FHSD 2011-2012 Budget *** SCCAD Finance Director
  30. 30. Operational Costs:$514,000/mo
  31. 31. Population Growth in St. Charles County 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
  32. 32. St. Charles County experienced a 150%increase in population from 1980 to2010 St. Charles County Missouri Community Development Department Planning and Zoning Division
  33. 33. History 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
  34. 34. Then & Nowo Look back 25 Years 40,000 40,000 35,000 o 4 Employees 30,000 o 9,400 Resident *Approximate based 25,000 on overall County Population 20,000 o 400 Calls for Service 15,000 9,400 10,000 2,700o Look at Today 5,000 0 400 4 47 1986 2011 o 50 Employees +115% o 2700 Calls for Service +575% o 40,000 Residents +325% o Aging Demographics
  35. 35. Then & Nowo Look back 25 Years o 1986: 0.75/$100 Assessed Value Voter Approved Tax Rate for General Revenue o Assessed Valuation $112,400,000o Look at Today o 0.5048/$100 Assessed Value Hancock Limit Tax Rate for General Revenue *Decrease 0.24 o Assessed Valuation 1.13 Billion
  36. 36. 5 Year Plan to BalanceBudget 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
  37. 37. 5 Year Plan to Balance BudgetResults:New Administration in 2005Improved 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
  38. 38. 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
  39. 39. 2008• Economy Tanks• Development Stops• Assessments Drop 2008 $1.24• Expenses Increase 2007• Revenues Drops & $1.21 Level 2009 2010 $1.18 $1.17 2011 $1.13
  40. 40. 10Year Budget ProjectionMillions 2.5 2 1.5 1 0.5 0 -0.5 2005 2006 2007 2008 2009 2010 2011 *2012 *2013 *2014 *2015 -1 -1.5 -2 -2.5 Budget Surplus (Deficit) Operating Reserve Balance(Savings Account) *Projected Source: Botz & Deal, CPA Rogden & Assoc., CPA
  41. 41. Looking at Biggest Expense CategoriesPersonnel 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 DeductiblesWorkers Comp. Insurance: Employee Wellness Plan and Commitment to Safety Practices Resulted in Very Low Experience Mod. And Reduction in Premiums of nearly $10,000
  42. 42. Wage Comparison in St. Charles County $50.00 $25.85 $24.08 $23.41 $23.41 $22.53 $17.19 $- $15.11 Current Hourly Rate of Paid Fire Organizations
  43. 43. Looking at Biggest Expense CategoriesPersonnel Costs: (Continued)• Sick Time: 37% Under Budget YTD 2011• Un-Scheduled Overtime: 26% Under Budget YTD 21011Schedule Modification to 48/96 Budget Awareness Modification of Work Rules
  44. 44. 575%From 1986 to 2010 325% 115% Population Demand Number of for Service Responders
  45. 45. 2005-2011 28% Avg. -.2% In Last 5 Years Avg. 1.6% In Last 5 Years Expenses Revenue Assessed Value
  46. 46. 19862036
  47. 47. Being Proactive
  48. 48. 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
  49. 49. 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?
  50. 50. Small Group Work Activity
  51. 51. Select Recorder & Spokespersono Recorder Responsibilities o Complete the requested information on your group’s worksheeto Spokesperson Responsibilities o Facilitate Discussion o Keep Group Focused/On Task o Report Group’s Information
  52. 52. Complete the Worksheeto Make sure the information recorded on the worksheet reflects consensus of the groupo Monitor progress to complete the worksheet in allotted timeo Only the group recorder’s worksheet will be collected
  53. 53. Small Group Work Activityo Task #1 o Based on the information provided in tonight’s presentation, what most surprised you? What most concerned you? o Biggest Surprise: o Biggest Concern:
  54. 54. Small Group Work Activityo Task #2 o Based 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?
  55. 55. Small Group Work Activityo Task #3 o What additional questions does your group have about the District’s finances?
  56. 56. 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?
  57. 57. Thank You! Next Meeting: Nov. 17Topic: Draft Recommendations

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