HomeMy WebLinkAboutMINUTES - 07092013 - D.1RECOMMENDATION(S):
ACCEPT a report from the County Administrator on the status of 2013/14 Contra Costa County Fire Protection
District budget, including new revenues.
FISCAL IMPACT:
No fiscal impact. Informational Report only.
BACKGROUND:
With the Measure H fund increase of $447,550 and the SAFER Grant recovery of $4,646,274 there has been much
interest about impact to the FY 13/14 District Budget and whether or not this means that one or both of the proposed
fire station closures should be delayed. The FY 13/14 District Budget has been built on an assumed increase in ad
valorem (AV) property tax of 2%. The actual number is 5.34%; however, with the estimated reduction of
Redevelopment Agency (RDA) tax increment, the net AV increase to the District is estimated to be 4.89%. This
represents a projected net increase of $2,229,794 above what is budgeted for FY 13/14. Finalized RDA loss
information is not available until late September 2013.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 07/09/2013 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, Director
Candace Andersen,
Director
Mary N. Piepho, Director
Karen Mitchoff, Director
Federal D. Glover, Director
Contact: David Twa, County
Administrator
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: July 9, 2013
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
D.1
To:Contra Costa County Fire Protection District Board of Directors
From:David Twa, County Administrator
Date:July 9, 2013
Contra
Costa
County
Subject:FY 2013/14 CONTRA COSTA COUNTY FIRE PROTECTION DISTRICT FINANCIAL UPDATE
BACKGROUND: (CONT'D)
NEW REVENUE
Measure H increase (ongoing)$447,550
SAFER Grant (one time only)$4,646,174
Net AV increase @ 4.89% (ongoing)
(2.89% Increase over 13/14 Budget @ 2%)
$2,229,794
Projected Expenditures over Revenue for FY 2013/14 and FY 2014/15:
Prior to new Revenue After new Revenue
FY 13/14 ($6,923,086) $400,432
FY 14/15 ($11,921,165) ($9,243,821)
Ending fund balance for:
Prior to new Revenue After new Revenue
FY 13/14 $7,487,212 $14,363,180
FY 14/15 ($1,833,571) $7,316,787
FY 15/16 ($11,948,318)($478,083)
ADDITIONAL FACTORS
1. FY 13/14 and 14/15 budgets assume negotiating a three year repayment of Pittsburg RDA funds in equal
installments of $422,093 annually. If the District is required to repay the entire $1,266,279 amount in FY 13/14, this
will be an additional expense of $844,186 above the FY 13/14 projection
2. ConFire’s Workers Compensation Fund continues to drop as we have not been able to fund at the Estimated
Confidence Level set by the Board at 80% for the past four years. In 2010 the Confidence level was at 92.5%, but has
fallen steadily since then and is currently funded at 48% Confidence level. Without increased payment into the
Workers Compensation Fund it could reach “pay as you go status” within the next 2 or 3 years. To return to an higher
Confidence level would require approximately
$6.8 M to return to 80%
$4.2 M to return to 60%
3. Pension costs will increase substantially in the next two fiscal years
FY 13/14 Increase of $1,720,000
FY 14/15 increase of $5,861,622
4. Pension Obligation Bonds will continue to increase each year to an annual increase of $810,000 by FY 2020/21
FY 13/14 increase of $603,000
FY 14/15 increase of $627,000
5. Employee Group Insurance (Active and Retiree Health care costs) has increased by over $360,000 each year for
the past 10 years and will continue to increase substantially each year
FY 13/14 increase of $500,000
FY 14/15 increase of $500,000
CONCLUSION
Even with the ongoing Measure H funding increase; the increased property taxes from improved assessed
valuations; and the SAFER Grant one time only funds the District will continue to spend more than it takes in
each year.
At the current projection of 22 stations, all reserves will still have been exhausted and the District would need
additional revenues of approximately $478,000 to stay in operation during FY 15/16 and in excess of $10
million to stay in operation during FY 16/17.
If the station closures identified in the FY 13/14 budget are not implemented, the District will exhaust all
reserves in FY 14/15.
Projected revenue increases are not sufficient to keep-up with expenditure increases, let alone reducing reliance
on dwindling reserves.
Although the new on-going and one-time revenues included in this report are extremely beneficial, it is too
soon to reverse the action the Board has taken to close two stations this fiscal year.
The new resources could be used to lengthen the time before the Fire District’s reserves are depleted thereby
allowing more time for operational changes.
It is recommended that the Board confirm the current planned station closure and continue to carefully monitor
the fiscal situation while we plan for implementing operational efficiencies recommended by the Fitch report.
CONSEQUENCE OF NEGATIVE ACTION:
This is an informational report only.
CHILDREN'S IMPACT STATEMENT:
No impact.