1. Call to Order: 2. Pledge of Allegiance 3. Roll Call of Board Members: All members of the Board are present. a. Members of the Public: Randy James 4. New Business: a. Review and discussion of the 2010/2011 Fiscal Year Budget. Chief Howard opened the discussion saying Summit Fire is not immune to the budget cuts going on in this country and state. Don spoke about the notes he has presented to the Board. (See Chief’s Discussion Items) He explained he would like to begin the Budget Work Session with concepts and key points in hopes for clarification on issues and for direction from the Board Members for future budget work session meetings. The following items were discussed briefly in reference to the handout: - The tax levy. People are not interested in what the levy is, but rather the total amount they have to pay. - Don, Sam and Tina have gone through the budget and sliced portions from most category. - Standard step increase and same mil rate were discussed. See #2. They spoke of needed income per month. There was a discussion held about using line of credit. Don spoke of the advantage to borrow money at a relatively cheap rate. - A step increase for the entire department will cost approximately $165,000. - Carry forward discussed– see figures. The department would have to spend some capital carry forward into the next years’ budget per the budget and figures presented tonight. It was decided to go over the budget information handed out on a line by line item. Don asked the board to help evaluate what our greatest priorities are. Don wants the board to understand all the items and information in determining their decisions. Jim Doskocil asked Tina to make adjustments and additions to the budget showing how totals would stand at a 2.4 mil rate in order for the Board to reference the difference. Don said as the budget stands now and incoming tax levy, the amount in the red will be $149,000. The step increase is reflected in each budget per levy rate. Jim asked for clarification on the 2.475 and 2.55 mil rate budget. Deputy Chief Whitted explained the difference of a 2.55 mil rate will bring in the same amount of revenue that we actually receive now, and with a 2.475 mil rate the taxpayers get a small break but at the same time the tax levy is not affected much. Last year assessed value (2009) was 172,728,102, and 2010 figures are 162,997,533. This is a drop of 10 million dollars. Gary Selig asked if there was a solid number on health insurance. Don stated to the Board that the department does not get those quotes until approximately 2 weeks before the end of the year; therefore this amount is based on our projection. The budget shows a 15% increase for health insurance. Returning to the assessed valuation, Don predicts in 2011/2112 there will be a possible drop with totals approximately 146,697,780. He looks at the City of Flagstaff who has had a more immediate impact from the drop of assessed valuations. The City is dependent on sales tax. We see our decline slowly because of the delay in assessed valuations. Don said he wants to put things in place now for 2012/2013 budget which may have a 5% decrease in assessed valuation by then. This is speculation as of now, but this is what we are planning for, and why we are looking to make the changes we are making now. Gary asked about those who do not pay their property tax; homes in foreclosure, non-payment, etc. Don told Gary 98-99% of taxpayers in the Summit Fire District (SFD) are still paying their taxes. In Maricopa County this is a much larger issue. FDAT – see budget. These figures are by taking an average of the last 3 years, in accordance with the new state statute. Our figure will be static unless changes are made in legislature. FDAT will be 495,178 in the new fiscal year. GRANTS: All Grants are speculative. If we get grant funding we spend it, if we don’t get it, we don’t spend it, and so that is why we don’t show it in the Budget. Sam Whitted spoke to the Board. He said he wants to hear from the Board Members philosophically. Where do we want to be in relation to our taxpayers? What is the feeling in reference to them? Do we want to show them a slight relief on their bill? Rick Parker said he does not want to see taxes go up. He has talked to a lot of people, and they don’t want to see their tax bills go up anymore. Rick hopes we can keep the mil rate the same, or go a bit lower. Rick believes we need to look at personnel items, to focus on some of the big items to cut, and how this will tie us into the following year; i.e. the effect on the cash carry-forward. Rick thinks we need to discuss some of these high price items. Jerry Loynachan believes the residents are looking at their tax bills as a consequence of home evaluations and assessed valuations, so if taxes remain the same they will consider that a raise. Jerry believes many businesses have had to make significant cuts; it behooves us to do the same. Jim Doskocil spoke about the City of Flagstaff; positions lost, pay cuts, and a rising mil rate. He believes that someday down the road we will have to raise the mil rate. Times are tough and we do not want to lose anyone. If we can only offer a small cut in taxes because of a reduction in assessed valuations, then that is a better way to go. Don thinks our main priority is not to lose any of our employees. Dan asked about pay raises. This budget shows 5% for those in their 1st through 5th year and 3% for those employees beyond 5 years. The pay raise for the department will equal $165,000. (See attachment, Payroll Comparison) The totals are salary and everything associated with salary. There was a discussion about workmen’s compensation and the cost. Jerry asked about PSPRS and ASRS. Rick spoke about the 2010/2011 payroll budget. Rick said back then he was for the increase of 5 and 3%, but now is now and maybe this is not the time we can do this. Personnel costs are 85% of the budget. If we cut the raise, we are still $228,000 in the hole, with keeping the mil rate the same. Gary Selig would like to keep the mil rate at 2.4 if possible. Jerry asked if they could survive a hiring freeze. There was a discussion about a hiring freeze. Don said we can lose up to 3 people, but the 4th loss would have to be replaced. Today we have 3 man engines and 2 two main engines. With the loss of one employee the stations on this side would become a two man engines. Money saved would depend on where they are on the income scale. With more discussion on this item, Don said this budget is set with not losing anyone. If the board directs that we lose someone and replace them, then Don will go by what the board directs. Don said the board needs to weigh the step increase for all the firefighters. What we do not address now will reflect on our budget in 2012-2013. There was further discussion about Jim Doskocil’s concern of losing and replacing a firefighter if one was to leave. Jerry questioned the overtime pay. Don explained some is built in; holidays, approximately 25% for FLSA, vacation, department approved leave for training, and sick leave. Don said we do not guarantee full man crews but if staffing gets too low then we have to pay too much for filling positions; overtime, vacation, etc. We don’t have an acting BC every day, but most days we do. Jerry also asked about a hiring freeze. Don wants to look at these guys future, and do everything in his power to make sure these guys are still here well after he retires. Out of District income was discussed. This year the department made $300,000. The year before this total was much less. Don spoke of the importance and benefit for these guys to be willing to go out on Wildland. Out of District calls pay for the employee salary and overtime. Sam says he doesn’t think the importance of Out of District assignments has been made clear enough to the employees; whether it is an entire engine, or only one person. Tina Dillahunty said the Board Members need to look at the out-of-district reports at board meetings so they understand the benefit. SFD generated over $650,000 in just one year (previous) which was very beneficial. Don reported at one time we were one of the only departments to go out of district and now there are many more departments involved. The State of Arizona has 3 million dollars in emergency funds, but when that 3 million is up, the state will supply departments with IOU’s. If you are a larger department the burden of this ‘carry’ will not be as great compared to a smaller department. Most likely many/most smaller departments will be unable to participate. Sam reported that Hellsgate Fire waited 2.5 years to be paid for their work after the Katrina incident. There were further discussions about FEMA. Don stated Arizona has historically not taken advantage of FEMA. Rick said if we don’t go on these types of calls, the state might quit calling us and call those who will respond. Don thinks at this time we are big enough to absorb the wait for payment. Gary commented with the first IOU we receive a discussion could be held whether we want to continue or not. He believes there will be more information concerning these types of events at a later date. Jerry asked how many companies are available to provide the type of medical insurance we need. Don believes there are only 5 companies in the state who can provide what we ask for. Don said maybe we need to highlight the medical insurance area. At an earlier meeting he suggested firefighters pay for a partial amount for their health care insurance which would save 22,000. But this is something for the board to look at. He said they have looked at other departments and agencies that have made these types of changes. There was a discussion about capital carry forward and using our line of credit. The department does have to exhaust their funds before taking on a line of credit. If we exceed the credit line then we go into registered warrants which cost a little more interest. Tina is working now with Wells Fargo to raise our credit line. There was a discussion held about the Dispatch Center. Chief Howard anticipates paying $45,000 next year for dispatch services; with each call approximately $35.00 (page 10). At this time we are reviewing other options. There was a discussion held about other potential routes. Don hates to think of getting away from 9-1-1, but situations have been befuddling, including timing to turn calls over. The least we can do is examine our options. BUDGET PER LINE ITEMS: Vehicle expenses: 3010: Fuel and Oil – This amount has been reduced by 10,000, but now we are seeing the cost of fuel go up. At this time we are at 35% of budget on fuel. 3015: Outside vehicle repair - was 26,000, chiefs cut back to 20,000. 3020: Auto Parts - Don said some of this amount needs to be examined. Don thinks this will be one of the tightest budgets. 3110: Small Tools & Equipment, 30,000 of the 36.000 is the Assistant to Firefighters Grant. Don commented that last year this grant had to go through 18 ‘rounds’ of giving out grants and at this time they are only on round 5. 3115: Communication Equipment. This amount was reduced. It is important to keep repairs in the budget. 3120: Safety Equipment – Many large items in the budget. Don spoke of the Homatro power unit and associated tool. The department does not have all the same tools and equipment in each truck. Homatro was taken out of the budget. The Assistance to Firefighters Grant pays 95/5%. • Sam commented briefly to say he believes the guys did a good job of identifying priorities in their own budgets, and were clear about the work they did for their budget requests. 3125: Medical Equipment – The bulk in cost is for payment on the 6 defibulators. Next year will be the last payment to Zoll for this equipment. ($26,000) 3030: Office Equipment/Furniture - $10,000 has been applied for the exchange server. Don believes there should be further discussion on this item. 3210: Medical Supplies – This figure is usually constant as is training supplies. 3225: Building, Land & Maintenance – Originally this total was $68,000. There was an additional $12,000 cut for carpet in all of the administrative offices. Instead new flooring will only go in the community room. 3235: Postage/Shipping - SFD will send out only two newsletters a year rather than three. 3310: Uniforms – Don said a number of people have mixed feelings for a dress uniform for all firefighters. The cost for all personnel dress uniform is $45,000. Typically SFD goes to special events in Class A’s. Don thought this should be discussed tonight. Dan talked about funerals, etc. and suggested we take a vote on how the staff feels about this. Rick said he has been to many funerals that are firefighter related. Rick said dress uniforms are nice to have, but like nice wheels on a car, if you can’t afford it, maybe you wait till times are better. Rick said he is not trying to cut the idea down, but thinks this is a bad time to discuss this issue. Rick thinks it is just a nicety. This amount is a onetime purchase. Rick suggested financing some of these items over a number of years. Don believes with smaller equipment and supplies financial institutions will not do that. Gary reminded them about the lack of funding for communication equipment. Tina said in order to finance an item it has to be an asset that is truly an asset. There was further discussion about financing items. Rick reminded the board $106,000 needs to be cut so firefighters can have a pay raise. Rick would like to see a credit line. Don will try to identify some of the assets from the budget. Don will speak with the staff concerning their opinions on dress uniforms. 3325: Safety Apparel – Don has received a 2nd request concerning compliance with the National Fire Protection Association standards in regards to each firefighter having 2 sets of turnout gear. One set is close to $2,000; therefore the cost for all firefighters in compliance is $100,000. Don spoke of the replacement program and schedule. Jim spoke of the NFPA’s standards in many other areas, but financially many districts can not comply. There was a discussion about turnout gear and years of use. Rick said turnouts can last 35 minutes to 12 years. Rick suggested possibly financing turnouts, saying nine sets every year would work a replacement program. He said coordinators need to evaluate all turnouts. Sam discussed the extractor purchased, how PPE coordinators went to classes to get certified for its use. Our program is far ahead than what it was in the past. Don said this information will be shared with the program coordinators. Travel: Food, Lodging & Mileage - We do a lot of travel for training. The AFDA costs are included. Don said this years’ mileage to date is at 148% of what was budgeted. For that kind of money we could buy a van/sedan to be used for training purposes. Gary questioned the true savings due to insurance, maintenance, tires, etc. 4215: Public Education - The clown program was added and Don believes it has tremendous value. 4220: Public Safety – This program has been reduced. 4230: Out of District Expenses – This is the cost of running a Wildland program. 5010: Payments on vehicles and buildings. There was a discussion of capital items and the apparatus replacement schedule. Don said we have presented the Summit Fire Board with figures representing future assessed valuations and therefore estimations of future capital carry forward, as well as the effect of a changed mil rate. He asked the board if there were any questions. Dan Atkinson asked about other quotes for a workman’s compensation program. Tina said she is looking into this now, but those she has spoken with have little experience in Arizona. She looked into other quotes last year. These other companies were not interested in doing business with Summit Fire. She said our membership with Farm Bureau for $35.00 a year gives the department a $4,000 refund from our Workman’s Comp. Sam said with leadership team meetings we are raising the bar with awareness and knowledge to risk management about group sports that are hazardous and costly to the department. Dan asked about medical quotes. Dan would like to see the quotes of the 3 insurance companies that we did not get to look back in December 2009. We should not wait until the last second to look into other resources. Dan talked about exploring different strategies. We need to know what our savings might be. Blue Cross Blue Shield went up $53,000 in one year. BCBS provides 80% of insurance in the greater Flagstaff area. Some of the other provider lists there were regular doctors of personnel who were not included (Klassen). Dan said maybe we will have to have a special meeting just on health insurance. We have to work on this now; we may have to have a different doctor, a different deductible, and a different carrier, but this is so we are able to get a 3% pay increase. Tina said the medical insurance companies are unwilling to give a quote until the last minute because they want to see how many claims a company will put in before the end of the year. Don said health care is important to this department, but we have to be creative, give quality coverage, but be more affordable. Don put in a 15% increase the second half of the year for medical insurance, being the insurance companies run on a calendar year rather than a fiscal year. Different folks in the department have different priorities, so it is the Board’s job to have the final decision. Also, we will look into dress uniform and ask the staff if this is something we lease purchase as Rick suggested. Don reiterated the need for the Board needs to help us evaluate the larger priorities. Dan said there are many ways of looking at pay increases. Dan wants feedback from personnel about a 3% increase one year, or tiny increases each year. It seems it would be better with a small increase each year, but the raises given in the last 5 years cannot be given with the current assessed values. Dan wants input from personnel on insurance now; to stay with BCBS and reduce step system amounts. Dan suggested the union leaders come to the next meeting and talk about these issues. A member of the leadership team, Garett Hall, spoke. The Union wants to keep salary, benefits and working conditions, but they are not unsympathetic to economic conditions. Their payment now affects their future. The Union would rather see extra projects cut so the benefits and steps are not cut. Garett will convey to the Union about a presentation. Don suggests mid April for another work session. Call to the Public: Randy James spoke. Randy said he was at the Board Meeting in September. He talked about minutes from previous meetings and indicated he felt he was interrupted and told he was out of order. He said tonight I am asking for an apology from Chief Howard, and that he can speak without interruption. Chief Howard responded and said Randy got away from the minutes and made personal attacks on more than one person in the meeting. He said he does not feel that he owes Randy an apology. Chief Howard told Mr. James the Board Chairman stated that your comments were inappropriate. You were out of order. Don said I don’t think you are a terrible human being. You can make your comments known, and you do. Randy James then went on to say He asked for a budget workshop in the past because he said he could see this kind of thing happening. The public was invited. This kind of meeting tonight is what he wanted. He presented those findings in the 3rd meeting (of a former budget meeting). He believes at this time there should be more of a correction (in the budget?). He said we used to have budget meetings in the past, but the last 4 years the budget barely got to the board by June and only enough time to look at it. During those years we had a 2.1 million dollar budget. Randy said he told everyone 3 to 4 years ago this can’t go on forever. He wanted to look at budget projections of 5 years from now. He is happy they are having these meetings now. Randy said he thinks the chiefs and battalion chiefs should have a written job description because some people are not clear about what they do. He said the department needs to stop spending money. He said tonight he only heard some talk about budget cuts for the next year. Randy spoke rather quickly about property value decreases. He said he was unhappy to hear about a pay raise. Randy wants the board to think about a 5 year ‘lookout’. The board has done well by cutting some things, and the staff has done well at that also. The third year (2012/2013) will be the hardest year. We can expect more of the same as 2009 in real estate - which probably will be going down, and then the next 2 years real estate will be flat, at best. Therefore, Randy said, the income of the next 5 years will drop and drop and sit there (flat?). He said with inflation expenses have a tendency to go up. Year 2,3,4,5 will have huge deficits. His concern is raising the mil rate, it getting to 3.25 and then you (SFD) will be in trouble - you will be at your limit - and then what will you do. Once you get up that high, how do you go back down? Randy said it best to be wise to look at 5 years. He said he will be glad to come back to show the board numbers, because they are not being shown here tonight. If they want him to come back he will. Randy said it is almost frightening. He hopes the board continues the workshops and sit down and ask some questions and to look at some numbers. Randy thanked them for allowing him to speak, and if you have any questions for him now to go ahead. Board Chairman Jim Doskocil told Randy there were no questions. Adjournment: There was a motion to adjourn by Jim Doskocil and a second by Rick Parker. The vote was unanimous and the meeting adjourned at 8:21 p.m. Respectfully Submitted, Joann Benninghoff |
8905 N. Koch Field Rd. Flagstaff, AZ 86004 E-mail: sfdadm@infomagic.net
Phone: (928) 526-9537
Fax: (928) 526-2750
Fax: (928) 526-2750
| March 11, 2010 2010-2011 Budget Work Sessions #1 |