Wake County Fire Tax District FY 20 Staff Budget Recommendations - PowerPoint PPT Presentation

Wake County Fire Tax District FY 20 Staff Budget Recommendations

FY 2020 Budget Development Calendar • April 25: Fire Commission to Recommend Budget • May 6: County Manager presents Recommended Budget to Board of Commissioners • May 20: Public hearings on County Manager’s Recommended Budget • June 3: Board of Commissioners vote to adopt FY20 Budget

FY 20 Guidance, Drivers and Considerations • Historical Trends • FY 19 Projections • FY 20 Revenue Outlook • Existing Deficit • Departmental Fund Balances • Long Range Planning Underway 3

Historical Trends 4

Since FY 14, revenues have grown at an average of $415,000 or 1.7% annually*** $30.0M 20.0% $26.5M $26.3M $25.9M $25.0M 15.0% $21.8M $21.5M $21.3M $20.0M 10.0% $15.0M 5.0% $10.0M 0.0% $5.0M $.0M -5.0% 2014 2015 2016* 2017** 2018 2019 Projection Revenues $21.5M $21.3M $21.8M $25.9M $26.3M $26.5M Percent Change 4.4% -1.0% 2.5% 18.6% 1.7% 0.8% *FY 2016 included one-time transfer of $2.5 million to the Capital Fund **FY 2017 included 1.48 cent tax increase ***Averages exclude FY 2017, when there was a 1.48 cent tax increase

Since FY 14, Expenditures have grown at an average of $1.2M, or 5% annually $30.0M 18.0% $27.3M $26.3M $25.3M 16.0% $24.6M Percent Change from Prior Year $25.0M 14.0% $21.3M $20.7M Total Expenditures $20.0M 12.0% 10.0% $15.0M 8.0% $10.0M 6.0% 4.0% $5.0M 2.0% $.0M 0.0% 2014 2015 2016* 2017** 2018 2019 Projection Expenditures $20.7M $21.3M $24.6M $25.3M $26.3M $27.3M Percent Change 2.9% 3.0% 15.6% 3.0% 3.9% 3.7% *FY 2016 included one-time transfer of $2.5 million to the Capital Fund **FY 2017 included 1.48 cent tax increase

Current Year Outlook FY 2019 Adopted Budget and Projections 7

The current year deficit is now projected to be $753,000 CURRENT YEAR PROJECTION FY 2017 FY 2018 FY 2019 FY 2019 FY 2019 FY 2019 Projected Above/(Below) Above/(Below Actuals Actuals Adopted 3.19.19 Budget ($) ) Budget (%) Revenues Property Taxes 25,830,181 26,195,086 26,280,000 26,407,000 127,000 0.5% Interest Income 32,896 103,930 15,000 102,000 87,000 580.0% Total Revenues 25,863,077 26,299,016 26,295,000 26,509,000 214,000 0.8% - Expenditures - Debt Service 1,079,954 1,141,000 910,936 910,936 - 0.0% Capital 2,850,453 1,876,000 1,633,000 1,633,000 - 0.0% Department Appropriations 20,301,143 22,123,549 23,591,249 23,505,231 (86,018) -0.4% Systemwide Expenses 1,080,073 1,152,835 1,400,815 1,212,734 (188,081) -13.4% 27,536,000 Total Expenditures 25,311,623 26,293,384 27,261,901 (274,099) -1.0% - Surplus/(Deficit) 551,454 5,632 (1,241,000) (752,901) 488,099 -39.3% 8

FY 20 Financial Outlook 9

Wake County Fire Tax District FY20 Cost Share Percentage Updates Department FY19 Cost Share FY20 Cost Share Change Apex 18.86% 18.09% -0.77% Fuquay Varina 46.55% 45.48% -1.07% Garner 48.04% 47.37% -0.67% Holly Springs 17.69% 17.71% 0.02% Morrisville 16.99% 16.70% -0.29% Rolesville 54.90% 52.01% -2.89% Wake Forest 22.60% 23.11% 0.51% Zebulon 42.59% 41.76% -0.83% January 2019 Population Update 10

Revenues are projected to increase by $492,000 or 1.9% over the FY 19 Adopted Budget, but this is not enough to eliminate the deficit $30.0M 20.0% $26.8M $26.5M $26.3M $26.3M $25.9M $25.0M 15.0% $21.8M $21.5M $21.3M $20.0M 10.0% $15.0M 5.0% $10.0M 0.0% $5.0M $.0M -5.0% 2020 2019 2014 2015 2016* 2017** 2018 FY 19 Budget Projection v. Projection FY 19 Budget Revenues $21.5M $21.3M $21.8M $25.9M $26.3M $26.3M $26.5M $26.8M Percent Growth 4.4% -1.0% 2.5% 18.6% 1.7% 0.0% 0.8% 1.9% *FY 2016 included one-time transfer of $2.5 million to the Capital Fund **FY 2017 included 1.48 cent tax increase 11

Even with the projected revenue growth, a budget with ZERO funding increases results in a deficit FY 2019 FY 2020: Updated Change PROJECTION Revenue, Assume ZERO increases Total Revenues 26,509,000 26,788,000 279,000 Operating Revenues 23,965,064 24,198,000 232,936 Operating Expenses 24,717,965 24,717,965 - Operating Surplus/Deficit (752,901) (519,965) 232,936 Debt/Capital Revenues 2,543,936 2,590,000 46,064 Debt/Capital Expense* 2,543,936 2,866,221 322,285 Capital Surplus/(Deficit) - (276,221) (276,221) Total Expenses 27,261,901 27,584,186 322,285 Projected Deficit (Revenues Less Exp.) (752,901) (796,186) (43,285) 12 * Debt service requirements increase in FY20 for Wendell Falls Station and trucks funded in FY19

Financial Considerations • Even with projected growth in revenues, the Fire Tax District would still be in a deficit spending situation without adding any additional expenditures • There is no capacity for expansions within natural revenue growth • Adding expenses only adds to the existing deficit 13

Non-Profit Fire Department Fund Balances Fund Change from Department 2016 2017 2018 10 % Minimum Balance % 2017 Durham Highway $77,510 $106,224 $143,278 $93,432 15.3% $37,054 Eastern Wake $121,463 $166,151 $216,919 $186,856 11.6% $50,768 Fairview $348,876 $170,413 $206,686 $164,746 12.4% $36,273 Garner $375,546 $411,104 $528,114 $564,444 9.4% $117,010 Hopkins $35,613 $98,132 $206,972 $97,285 21.3% $108,840 Northern Wake $155,983 $230,443 $351,692 $322,053 10.9% $121,249 Rolesville $322,284 $430,888 $604,479 $173,256 34.9% $173,591 Swift Creek $48,431 $3,421 $43,509 $92,240 4.7% $40,088 Wake Forest $237,437 $162,234 $253,362 $694,891 3.6% $91,128 Wake New Hope $86,566 $162,082 $294,831 $164,488 17.9% $132,749 Wendell $230,386 $525,745 $614,316 $186,464 32.9% $88,571 Western Wake N/A N/A $211,174 $81,792 25.8% N/A 14

Operating Recommendations Department Appropriations Systemwide Expenses 15

Wake County Fire Tax District FY20 Total Budget Request Cost Share Departments - $ 37,929,759 ( Items such as personnel that we do not cost share on have not been removed from this figure ) 100% Departments - $ 13,861,328 Total - $ 51,791,087 * This does not include Expansions, Capital or Systemwide Expense *

Cost Share Requests and Recommendations FY 20 Rec’d FY 20 Rec’d County Rec’d FY 19 Budget FY 19 County FY 20 Eligible Appropriation Request* Budget Appropriation Increase(Decrease) (15,157) Apex 6,689,003 1,261,546 6,707,371 6,867,157 1,246,389 (10,000) Cary 60,000 60,000 N/A 50,000 50,000 Fuquay-Varina 4,202,624 1,956,321 4,368,576 4,465,981 2,034,701 78,380 41,355 Garner 4,655,321 2,236,416 4,690,932 4,802,384 2,277,771 32,673 Holly Springs 3,729,147 659,686 3,819,605 3,905,016 692,359 - Morrisville (HH) 4,885,231 846,120 4,879,508 5,063,555 846,120 (2,303) Rolesville(HH) 1,265,878 808,556 1,264,663 1,549,295 806,253 72,429 Wake Forest 5,688,527 1,285,607 5,712,709 5,868,781 1,358,036 (2,791) Zebulon (HH) 1,285,545 583,445 1,322,663 1,387,133 580,654 Total 32,461,276 9,697,697 32,766,027 33,959,302 9,892,283 194,586 *Excludes positions and other items the County does not share on. Does not include additional funding added by Wake County for LGERS and merit increases. (HH) = Hold Harmless 17

FY 19 Funded vs. FY 20 Recommended 100% Funded Departments Department FY19 Funded FY20 Change Recommendation Durham Highway $ 934,320 $ 938,958 $ 4,638 Eastern Wake $ 1,868,555 $ 1,932,410 $ 63,855 Fairview $ 1,653,915 $ 1,754,179 $ 100,264 Hopkins $ 972,848 $ 1,004,431 $ 31,583 Northern Wake $ 3,220,533 $ 3,374,286 $ 153,753 Swift Creek $ 922,400 $ 842,950 ( $ 79,450 ) Wake New Hope $ 1,644,878 $ 1,724,201 $ 79,323 Wendell $ 1,864,638 $ 2,103,425 $ 238,787 Western Wake $ 817,924 $ 807,409 ($ 10,515) Totals $ 13,900,011 $ 14,482,249 $ 582,238

Wake County Fire Tax District FY19 Funded vs FY20 Recommended Departments FY 19 Funded FY20 Recommended Change Cost Share $9,697,697 $9,892,283 $194,586 100% Funded $13,900,011 $14,482,249 $582,238 Totals $23,597,708 $24,374,532 $776,824

FY20 Summary of Department Increases Item Rounded Total Merit 305,000 Salary Study 258,000 Wendell Falls Station 1/4 Year 150,000 LGERS Change 124,000 Annualization of Prior Year Merit 92,000 Non-Personnel Operating Budget Changes 35,000 Technical Corrections 9,000 Cost Share Update Impacts (90,000) Department Reductions (106,000) Total $ 777,000 20

Operating- Personnel Expansion Request Operating – Personnel Expansion 9 Departments Requested a total of $ 2.4M in Personnel Expansions Requests Staffing Request for Proposed New Stations accounts for $1.7M of the 9 Departments requested personnel total request expansions totaling $ 2,422,553 The remaining $700,000 are request for New Positions, Enhanced part- time & Career Staffing and more Volunteer Duty Crews 21