Wake County Fire Tax District FY 21 County Recommended Budget FY - - PowerPoint PPT Presentation

Wake County Fire Tax District FY 21

County Recommended Budget

FY 2021 Budget Development Calendar

2

• January 24: Budget Submittal Deadline
• February 3-12: Department Meetings
• Week of February 17: Budgets Shared with Sub Committees
• March 2: Budget Request Shared with Budget Committee
• March 9: Budget Committee Recommended Budget
• COVID -19 Starts to drastically affect Wake County
• March 26: Staff Presents new recommended Budget to Budget Committee
• March 31: Budget Presentation to County Manager (Cancelled)
• April 28: Fire Commission Meeting to discuss Budget

Meeting schedule from March 9 and out changed drastically based on COVID19

FY 21 Guidance, Drivers and Considerations

3

• Historical trends
• FY 20 projections
• Reval Impacts
• FY 21 revenue outlook
• Structural Imbalance
• Long range planning

underway

• COVID-19 Economic Impacts

Wake County Fire Tax District

FY21 Cost Share Percentage Updates

Department FY20 Cost Share FY21 Cost Share Change Apex 18.09% 16.86%

• 1.23%

Fuquay Varina 45.48% 44.05%

• 1.43%

Garner 47.37% 46.05%

• 1.32%

Holly Springs 17.71% 17.44%

• 0.27%

Morrisville 16.70% 16.14%

• 0.56%

Rolesville 52.01% 48.51%

• 3.50%

Wake Forest 23.11% 23.48% 0.37% Zebulon 41.50% 40.74%

• 0.76%

4

FY 2021 Budget Development – What is Different This year

5

• COVID 19 Timing – Restrictions and timing did not allow us the opportunity

to reconvene each committee to provide input based on the economic downturn as a result of Stay at Home orders

• Budget Committee and County have different FY21 Budget

recommendations

• Due to ongoing COVID19 Operations and Social Distancing Restrictions, the

meeting between the Budget Committee and County Manager did not occur

• First ever Virtual Meeting of the Fire Commission

Historical Trends

6

Revenues are growing

(1% avg increase)

*FY 2016 included one-time transfer of $2.5 million to the Capital Fund **FY 2017 included 1.48 cent tax increase

2015 2016* 2017** 2018 2019 FY 20 Budget 2020 Projection Revenues $21.3M $21.8M $25.9M $26.3M $26.6M $26.8M $26.8M % Changes

• 1.0%

2.5% 18.6% 1.7% 1.2% 0.6% 0.7% $21.3M $21.8M $25.9M $26.3M $26.6M $26.8M $26.8M $.0M $5.0M $10.0M $15.0M $20.0M $25.0M $30.0M

• 5.0%

0.0% 5.0% 10.0% 15.0% 20.0%

Expenditures are growing, too

(3.3% avg. increase)

*FY 2016 included one-time transfer of $2.5 million to the Capital Fund **FY 2017 included 1.48 cent tax increase

2015 2016* 2017** 2018 2019 FY 20 Budget 2020 Projection Expenditures $21.3M $24.6M $25.3M $26.3M $27.1M $28.3M $28.1M % Changes 3.0% 15.6% 3.0% 3.9% 3.1% 4.2% 3.5% $21.3M $24.6M $25.3M $26.3M $27.1M $28.3M $28.1M $.0M $5.0M $10.0M $15.0M $20.0M $25.0M $30.0M 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Total Expenditures Percent Change from Prior Year

FY 20 & FY 21 Revenue Impacts Pre & Post COVID

Impacts of COVID on County Budget

10

• Significant negative economic impacts expected similar to Great

Recession

• County is estimated a revenue loss of approximately $50 million

in FY21

• County has already determined it will not be able to afford salary

increases for County employees

• County Departments have been directed to cut 1.5% from their

remaining FY20 Budgets, and cut 7% of their FY21 base budgets; County Manager unlikely to propose tax increase for County General Fund; CIP projects are being deferred or reduced

• These impacts have influenced the revised recommendation for

the Fire Tax District.

Fire Tax District FY 2020 Revenues

11

Fiscal Year Tax Rate Estimated Revenues FY 2020 Adopted Rate: 9.60 Cents $26,737,000 FY 2021 (pre-COVID) Revenue Neutral: 8.37 Cents $26,920,687 FY 2021 (post-COVID) Revenue Neutral: 8.34 Cents $26,721,780 Total Change from Adopted FY 2020 ($15,220)

• Anticipated vehicle values left to bill have dropped from original projection
• Projected Collection Percentage: 99%, decrease from 99.25%

12

Current year deficit now projected to be ($1,249,029)

FY 2018 FY 2019 FY 2020 FY 2020 FY 2020 FY 2020 Actuals Actuals Adopted Projected 3.25.20 Above/(Below) Budget ($) Above/(Below) Budget (%) Revenues Property Taxes 26,195,086 26,452,844 26,737,000 26,721,780 (15,220)

• 0.1%

Interest Income 103,930 171,074 51,000 88,000 37,000 72.5% Total Revenues 26,299,016 26,623,918 26,788,000 26,809,780 21,780 0.1%

• Expenditures
• Debt Service

1,141,000 910,936 1,233,221 1,233,221

• 0.0%

Capital 1,876,000 1,633,000 1,290,102 1,290,102

• 0.0%

Department Appropriations 22,123,549 23,505,265 24,403,505 24,372,904 (30,601)

• 0.1%

Systemwide Expenses 1,152,835 1,071,704 1,337,172 1,162,582 (174,590)

• 13.1%

Total Expenditures 26,293,384 27,120,905 28,264,000 28,058,809 (205,191)

• 0.7%
• Surplus/(Deficit)

5,632 (496,987) (1,476,000) (1,249,029) 226,971

• 15.4%

CURRENT YEAR PROJECTION

Fire Tax District Reappraisal Update

13

Fiscal Year Tax Rate Estimated Revenue FY 2020 Adopted Rate: 9.60 Cents $26,737,000 FY 2021 (pre-COVID) Revenue Neutral: 8.37 Cents $27,302,854 FY 2021 (post-COVID) Revenue Neutral: 8.34 Cents $27,123,178 Total Change from Adopted FY 2020 $386,178

• FY 2021 Assessed Valuation: $32.54 Billion (First fiscal year following 2020 revaluation)
• Projected Collection Percentage: 98.75%, decrease from 99.25%
• We are projected to collect less revenue in current year, which makes our use of fund balance

in FY20 even greater

• Projected collections in FY21 are also anticipated to be less, which will have an impact on our

FY21 budgeted expenditures

Operating Recommendation

Department Appropriations Systemwide Expenses

14

Operating - Differences Between Budget Committee Recommended and County Recommended

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• Removed 3% Merit for all Full-Time personnel
• Removed Proposed Expansion of 3% Merit Increase

for Part-Time Personnel

• Removed Travel & Training Expansion Request from

Northern Wake and Hopkins

100% Funded Departments Operating - County Recommended

Department FY20 Approved FY21 3.9.2020 Recommended FY21 County Recommended Increase / (Decrease) from 3.9.2020 Increase / (Decrease) from FY 2020 Durham Highway $938,958 $950,978 $932,439 ($18,539) ($6,519) Eastern Wake $1,932,410 $2,024,487 $1,850,483 ($174,004) ($81,927) Fairview $1,774,821 $1,848,555 $1,814,774 ($33,781) $39,953 Hopkins $1,004,431 $1,065,426 $1,037,081 ($28,345) $32,650 Northern Wake $3,385,965 $3,607,308 $3,530,500 ($76,808) $144,535 Swift Creek $846,282 $863,050 $849,885 ($13,165) $3,603 Wake-New Hope $1,724,201 $1,816,617 $1,789,348 ($27,269) $65,147 Wendell $2,103,425 $2,737,124 $2,666,968 ($70,156) $563,543 Western Wake $813,846 $846,847 $828,557 ($18,290) $14,711 Totals $14,524,339 $15,760,392 $15,300,035 ($460,357) $775,696

Figures include base and recommended expansions

Cost Share Requests Operating – County Recommended

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Department

FY 20 County Appropriation FY 21 Request with Cost Share FY 21 3.9.2020 Budget Comm Recommended FY 21 County Recommended Increase / (Decrease) from 3.9.2020 Increase / (Decrease) from FY 2020

Apex $1,242,269 $1,269,267 $1,269,267 $1,242,107 ($27,160) ($162) Cary $50,000 $50,000 $50,000 $50,000

• Fuquay-Varina

$2,031,128 $2,026,555 $2,026,555 $1,986,039 ($40,516) ($45,089) Garner $2,274,889 $2,396,996 $2,396,996 $2,345,943 ($51,053) $71,054 Holly Springs $691,578 $696,477 $696,477 $681,150 ($15,327) ($10,428) Morrisville (HH) $846,120 $805,789 $805,789 $787,833 ($17,956) ($58,287) Rolesville(HH) $806,253 $675,601 $675,601 $664,877 ($10,724) ($141,376) Wake Forest $1,356,275 $1,720,800 $1,720,800 $1,524,053 ($196,747) $167,778 Zebulon (HH) $580,654 $584,339 $584,339 $572,847 ($11,492) ($7,807) Total $9,879,166 $10,225,824 $10,225,824 $9,854,849 ($370,975) ($24,317)

*Requests excludes positions and other items the County does not share on. Requests do not include additional funding added by Wake County for LGERS and merit increases. (HH) = Hold Harmless Amount County Share figures include base and recommended expansions

Wake County Fire Tax District

FY20 Adopted vs FY21 County Recommended

Departments FY 20 Adopted FY21 3.9.2020 Recommended FY21 County Recommended Change from Previous Recommended Cost Share $9,879,166 $10,225,824 $9,854,849 ($370,975) 100% Funded $14,524,339 $15,760,392 $15,300,035 ($460,357) Systemwide Expenses $1,337,172 $1,409,510 $1,421,510 $12,000 Total $25,740,677 $27,395,726 $26,576,394 ($819,332)

Figures include base and recommended expansions

Operating – Personnel Expansion Recommended - $67,604

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• 3% Merit Increase for Part-Time Employees of 100% Funded

Departments - $51,500

• Captain Per Shift at Wendell Station 2 - $9,000
• Additional Pooled Overtime to Cover vacation/sick for 9 new FTE’s at

New Wendell Falls Fire Station - $17,000

• Northern Wake -Additional Part-Time Funds to cover vacation/sick due to

FSLA Rule on Trading Time -$30,733

• Fairview – Additional Part-Time Funds to cover vacation/sick $10,871
• Wake New Hope – Additional $8,000 for Duty Crew Coverage

Operating – Misc. Items Recommended

20

• Hopkins – Additional Funding for Travel & Training $6,000
• Northern Wake – Additional Funding for Travel & Training $11,000
• Wendell – Additional Operating Expenses for New Station $7,500

Capital Requests

Replacement Schedules Apparatus & Equipment Capital Expansion Requests Facilities Technology/Communications

21

Wake County Fire Tax District FY21 Capital Replacement Schedule Funded – Equipment

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Description FY21 3.9.2020 Recommended FY21 County Recommended Full Set Personal Protective Equipment $374,000 $365,000 Thermal Imaging Cameras $56,000 $56,000 Defibrillators $72,000 $98,000 Mobile Data Terminals $177,000

• SCBAs
• $42,000

Small Capital (Annual Allocation) $150,000 $150,000 Small Capital Funded $66,500 $18,000 Total $895,500 $729,000

* Moved the $177K Set a side for MDT replacement back to FY22, reflected in the total

Small Capital Expansions – County Recommended

23

• Fuquay Varina Year 2 of 3 phased SCBA Bottle replacements
• Fuquay Varina Year 2 of 3 phased Nozzle replacements
• Wake New Hope SCBA Bottle replacements

Departments are receiving the $8,800 in Small Capital. This was removed last year, but added back in the County Recommended Budget

Differences in Budget Committee Recommended and County Recommended – Small Capital Items Removed

24

• Fairview Fire replacement of Life Safety Rope
• Northern Wake Fire 1 ¾ hose and nozzles
• Wake-New Hope Fire replacement of RIT packs
• Garner Fire replacement of gas powered PPV fans
• Fuquay-Varina Fire apparatus Knox Box
• Fuquay-Varina miscellaneous equipment for ladder/rescue truck
• Fuquay-Varina RIT pack for ladder truck
• Fuquay-Varina Fire replacement of Life Safety Rope

FY21 Planned Renovations/Repairs

25

• FY 2021 Fire Tax District is budgeted does not

include the $100,000 per year for Facility Planned Renovations & Repairs

• Fire Tax District Model is budgeted at $100,000 per

year for Facility Planned Renovations & Repairs in future years beginning FY22

Capital Planned Renovations & Repairs

26

100% Funded Departments

Department Request Cost

Eastern Wake New siding on Station 2 ( Hester Street Station ) $2000 Eastern Wake Repair Flooding Issue Back Door of Station 2 (Hester Street Station) $1500 Fairview Complete repaint of Station 2 & Station 1 rust removal from areas $11,000 Fairview Carpet Replacement in Sleeping Quarters of Station 2 $5,500 Northern Wake Station 3 Bay Door Replacement $35,000 Northern Wake Install of 7 Cord Reels for Kussmaul Chargers on Apparatus St 3 $12,270 Swift Creek Sandblast and Paint rear required exit steps $6,500 Swift Creek Provide a Town of Cary required area for grease trap accessibility $800 Totals $74,570

All of these expansion request were removed with the exception of Swift Creek, as this was captured wrong, and it is a yearly required inspection by the Town of Cary. This is placed in their Operating Budget

Capital Planned Renovations & Repairs

27 Department Request Cost County Cost

Fuquay-Varina Locker Replacement at Station 2 $3,000 $1,324 Fuquay-Varina Station 2 IT Upgrade for Training $7,000 $3,088 Fuquay-Varina Interior Painting of Station 2 $16,500 $7,278 Fuquay-Varina Station 2 HVAC Replacement $7,000 $3,088 Fuquay-Varina Interior Painting of Station 1 $9,200 $4,058 Fuquay-Varina Station 1 Carpet Replacement $5,300 $2,338 Fuquay-Varina Station 2 Bay Floor Cleaning Machine $1,500 $662 Fuquay-Varina Station 1 Storage Shelter Shingle Replacement $11,600 $5,116 Totals $61,100 $26,952 Grand Total $101,522

Cost Share Funded Departments

All Items removed from the FY21 Budget

FY21 Capital Facility Assessment Projects

28

• FY 2021 Fire Tax District is budgeted does not

include the $200,000 per year for Facility Assessment projects

• FY 2021 only includes funding for $46,000
• Garner Station 2 Vehicle Exhaust
• Swift Creek Vehicle Exhaust
• Fire Tax District Model is budgeted at $200,000 per

year for Facility Planned Renovations & Repairs in future years beginning FY22

Facility Condition Assessment Project Year 2 Projects

29 Department Repair Issue Cost Fairview Station 1 Touch Up Rusting Roof Edge Over Gutters $4,500 Fairview Station 1 Repair Leak on Roof $1,200 Hopkins Repair Leak on Roof $1,000 Swift Creek Vehicle Exhaust System $30,000 Wendell Station 2 Recommended to Apply Fluid Roof Coating to Metal Roof $43,000 Western Wake Replacement of HVAC Units $30,000 Western Wake Replacement of Roof Covering $25,000 Total $134,700 Department Repair Issue Cost County Cost

Garner Generator Replacement Station 2 $98,214 $45,218 Garner Vehicle Exhaust System Station 2 $33,128 $15,252 Total $131,342 $60,470 Grand Total $195,170

All Items removed except Garner and Swift Creek Vehicle Exhaust Systems

Wake County Fire Tax District FY21 Capital 7-Year Apparatus Replacement Plan

30 FY21 FY22 FY23 FY24 FY25 FY26 FY27

SCFD E1 EWFD E1 DHFD E161 Fairview E8 NWFD E51 EWFD E2 DHP164 WWFR E196 WNHFD E1 Fairview E3 NWFD E11 Wendell E113 NWFD E31 NH Eng 3 RRFD E152 Garner E9 Garner E5 FVFD E1 Garner E3 WFFD Eng 2 WFFD Eng 5 DHFD R16 UPF SCFD R1 UPF WFFD E1 HSFD E3 Morrisville E2 FVFE4 ZF Eng 94 SCFD Car 1 NWFD Batt 1 NWFD T56 DHFD Car 16 Hopkins T227 WNHFD Car 1 WNHFD Car 2 Apex T1 NWFD UT10 Zebulon UT9 NWFD Car 21 WFFD Car 4 Fairview Car20 NWFD Batt 2 Wendell B 114 WFFD Batt 2 Rolesville Car 1 Hopkins UT2 Hopkins B 224 EWFD Car 1 Zebulon Car 2 Apex Eng 22

* All administrative vehicle's and brush trucks have been removed from FY21 Budget and will be placed in FY22, resulting in a needed adjustment for FY22 &

• FY23. Highlighted Engines will be purchased by not necessarily in the year
• indicated. EWFD Car 1 has been removed completely based on vehicle allocations

within policy and needs of Town of Knightdale

Reserve for Future Fire Station Construction

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• Departments have requested stations in out years
• Projected funds were developed from known station cost on

previous build outs

• County will develop criteria for possible funding participation on

each project

• Project Set a Side to begin in FY21 of $500K
• County Staff developed cost modeling to get ahead of requests
• Projection estimates that a capital reserve of $1.3 million per year

would be required beginning in FY 2022 ($7.8 million over the 6- year CIP period)

32

Fire Tax Capital – Proposed Expenditures

FY21 FY22 FY23 FY24 FY25 FY26 FY27 Total Fire Apparatus & Vehicles $1.721 $1.735 $2.831 $2.162 $2.768 $1.260 $2.097 $14.574 Fire Equipment .729 .788 .820 1.114 .866 .852 .349 5.518 Station Repairs .046 .300 .300 .300 .300 .300 .300 1.846 Reserve for Station Construction

• 1.300

1.300 1.300 1.300 1.300 1.300 7.800 Debt Service Payments 1.361 1.522 1.550 1.777 1.788 1.890 1.803 11.691 Total Uses $3.857 $5.645 $6.801 $6.653 $7.022 $5.602 $5.849 $41.430

• Starting in FY 2022, proposing to begin building a Capital Reserve for Fire Station Construction
• Debt Service Payments represent repayment of loans from Debt Service Fund

(in millions)

Wake Forest Fire – Town of Wake Forest

33

• In the Fall of 2019, the Wake Forest Fire Department Board of Directors voted

to cease operation as a “not for profit” fire response organization on June 30, 2020, and “merge” into a Municipal Department under the Town of Wake Forest

• The County will now contract with the Town of Wake Forest to protect the

Wakette Fire District beginning July 1, 2020

• Wake County will provide the same Cost Share percentage to the Town of

Wake Forest as previously funded to the “Not for Profit” organization

• Based on cost share, increase cost for Town provided benefit package and

alignment of personnel within Town pay structure, this was an increase of $328K to the tax District

• Due to the budget reductions, Wake County met with Town of Wake Forest,

and Town of Wake Forest agreed to bear the majority of the cost for this endeavor, resulting in a reduction of $160K; leaving a $168K increase which is more in line with the difference resulting from cost share percentage change.

Eastern Wake Fire Rescue – Town of Knightdale

34

• Eastern Wake Fire Rescue Board of Directors and its Membership have been in

discussions with Town of Knightdale for over a year

• In March of 2020 the Eastern Wake Board of Directors voted to cease operating as a

“not for profit” Fire Response organization and its members become a part of the Town

• f Knightdale Fire Department
• Wake County will contract with the Town of Knightdale to cover the Alert Fire District at

the determined cost share rate based on approved formulas, as well as, develop use agreements for the County Owned property

• Town of Knightdale will receive Eastern Wake’s Approved Operating Budget Allocation,

which was reduced by $129,279 based on removal of Fire Chief’s Salary & Benefits

• Based on County Vehicle Policies, Town and County agreed to remove Eastern Wake

Car 1 from the FY21 replacement Schedule

• Town of Knightdale will be cost sharing on the 6 allotted sets of PPE and 2 Defibs for

Eastern Wake that are part of the FY21 Budget

• Wake County will be cost sharing on the purchase of 10 Scott SCBA’s in FY21 to

ensure the department is operating on same breathing systems.

• Total Projected Savings of $129K to the Fire Tax District in FY21

Fire Tax Model

Project Tax Rate Scenario Revised Staff Proposal

35

37

Projected Tax Rate Outlook – County Recommended

Model 2020 Adopted 2021 Revenue Neutral 2021* 2022 2023 2024 2025* 2026 2027

Operating

8.67 7.49 8.25 9.01 9.01 10.51 10.51 11.12 11.12

Capital

0.93 0.85 0.85 1.26 1.26 1.26 1.26 1.26 1.26

Total Fire Tax Rate (Cents)

9.60 8.34 9.10 10.27 10.27 11.77 11.77 12.38 12.38

Tax Increase

• 0.76

1.17

• 1.50
• 0.61
• Model assumes 1% Revenue Growth and 5% Expenditure Growth in future years
• Model eliminates the structural imbalance (use of fund balance)
• Model includes Capital Reserve for Station Construction and assumed operational costs of new stations
• 16% Fund Balance threshold for Fire Tax District Maintained
• Model assumes 3% Merit increases in FY 2022 through FY 2027

(in cents; asterisks denote revaluation years)

Summary and Take Aways

38

• COVID has significantly changed the world and Wake County in the

last 45 days and will have lasting implications for budgets

• County recommendation for Fire Tax District budget aligns with impacts

county-wide

• Preliminary options for the Fire Tax District were shared with the Board
• f Commissioners at their April Budget Retreat. They are willing to

consider a measured tax increase for FY21 and support incremental increases over time.

• Since March 9, County has removed over $800K from the Budget

Committees recommended budget

• County Recommended Fire Tax Budget still requires a .76 cent tax

increase in FY21 and a 1.17 Cents tax increase in FY22

4,084,814 4,252,223 4,650,780 4,979,976 5,407,499 5,671,752 5,949,095 6,240,180 6,545,689

• 1,000,000

2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000

2019 2020 2021 2022 2023 2024 2025 2026 2027 FY 2021 Base Model

Goal of 16% of Next Fiscal Year's Operating Ending Operating Balance Combined Fund Balance

39

FY2021 Budget Model

.76¢ 1.17¢ 1.50¢ .61¢

Questions?

40

• Chairman McGee will ask for comment from Budget

Committee Chair, Chief Matt Poole and any other comments from the Commission

• Comments from any of the Chiefs