2015 BUDGET With the 2015 Budgets of Parker Fire District and South Metro Fire Rescue Approved by the Boards on December 11, 2014 South Metro Fire Rescue Authority Arapahoe & Douglas Counties, Colorado Table of Contents Introduction Letter of Transmittal Fire Chief 1 Distinguished Budget Presentation Award 3 Board of Directors and Staff 4 Organizational Chart 7 Relationship Between Funds 9 Letter of Transmittal – Accountant and Chief Finance Officer 11 Budget Information The Authority and Its Services 19 Demographics 19 Services Provided 23 Revenues 24 Mission and Vision Statements 27 Strategic Plan and Critical Issues 27 Policies and Procedures 61 Budget Finance and Business Operations 62 Operating Budget Policies and Process 62 The Budget as an Operational Guide 64 The Budget as a Financial Plan 65 Other Policies of the Authority 66 The Funds and their Purpose and Sources & Uses of Funds 68 Capital Program 71 Summary of Capital Projects Budgeted in 2015 76 Debt Policies 77 Salary Administration 78 Graph of Authority FTEs 82 Summary of Revenues and Expenditures 84 General Fund 87 Executive Division/Deputy Chief 95 Board of Directors 105 Community Relations 107 Life Safety Bureau 113 Finance 117 Support Services 123 Facilities Maintenance 129 Wellness and Fitness 161 Human Resources 167 Technology 173 Logistics 185 Fleet Services 187 Preparedness 191 Operations 247 Summary of Authority Calls 250 i Table of Contents (Continued) Capital Projects Fund 263 Ambulance Transport Fund 267 Building Rental Fund 277 Cherry Hills Village Pension Trust 281 Parker Fire Protection District (PFPD) 283 South Metro Fire Rescue (SMFR) 287 Authority Performance Measures and Indicators 291 Glossary 303 Appendix I Resolutions to Adopt Budget, Appropriate Sums of Money and Set Mill Levies and Certifications to Counties for PFPD 309 II Resolutions to Adopt Budget, to Appropriate Sums of Money and Set Mill Levies and Certifications to Counties for SMFR 317 III Resolution to Set Mill Levies for Cherry Hills Village Pension 323 IV Resolutions to Adopt Budget and Appropriate Sums of Money For South Metro Fire Rescue Authority 325 V Ten-Year Plan 329 ii INTRODUCTION SOUTH METRO FIRE RESCUE AUTHORITY ^OUTH METR5 FIRE RESCUE December 11,2014 Boards and Citizens South Metro Fire Rescue Authority Parker Fire Protection District South Metro Fire Rescue Douglas and Arapahoe Counties, Colorado Dear Boards and Citizens: The 2015 budget reflects the priorities of the South Metro Fire Rescue Authority for its seventh year. An Authority was formed by Parker Fire Protection District (PFPD) and South Metro Fire Rescue (SMFR) in May of 2008. The Authority model will remain until January 1, 2016 when the combination of the two districts into a single entity will occur at a single mill levy of 9.25 mills. The PFPD mill levy will decrease by 3.728 mills at the full merger. At the current assessed value the resulting reduction in property tax revenue to the Authority will be approximately $5.6 million. There have been indications, from the counties, that the increase in assessed values could be upwards of 14% to 16%. South Metro needs an increase of 13% to make up the $5.6 million decrease. The property tax assessment increased by 1.04% for the entire Authority in 2015. These numbers could be changed by a change in the ratio of actual property values to assessed values for both residential and commercial by the state. In anticipation of the property tax decrease, cuts have been made that effectively managed an adverse impact to emergency services, Some facility improvements and replacement of vehicles have been delayed. We had a reduction in force In 2010 and we have not replaced support personnel that have terminated employment without looking at how work could be redistributed if at all. The Authority has increased its cash reserves over the last 6 years to provide a reserve to help get through the loss of revenues. We will continue to evaluate programs and processes to look for efficiencies where possible. We are instituting an RFID (Radio Frequency ID Program) in EMS supplies in order to rotate drugs with limited lives from stations that don t use that many drugs to ones that do use them more frequently to eliminate having to dispose of drugs because they have expired. We are adding a Logistics Division with a Captain from the EMS Bureau who has been working and monitoring the drug inventory for 15 years. This program will also be applied to operating supplies for facilities and operations. •m; ll:^ " ^^w;: ^'."w/!:W^'Ji^':'l^jV\^ ••• li^,:i;:'; ^"~:^/i"it::;'J>-'}uwf' 1 The Authority hired a new Fire Chief in 2014. Along with the Executive Team, organizational changes were made to the Authority to improve efficiencies in operations. One of the major changes was creating a Preparedness Division that will provide all training and educational opportunities, both internal and external, thus providing more coordination in the use of the training facilities as well as coordination of the educational content. We are excited about these changes and look forward to evaluating the efficiencies gained. Budgeted expenditures have been increased by $855,209 for 2015 over the 2014 budgeted numbers in the General Fund. Increases to operating expenses, and worker's compensation premiums account a total increase is 1.5% in the General Fund. Revenues have increased by 3.18% from 2014 to 2015. Most of the increase is due to an increase in expected Specific Ownership Tax and a transfer from the Ambulance Transport Fund to the General Fund as the Ambulance Fund has accrued a significant cash reserve in excess of what is needed to adequately fund replacement ofEMS apparatus and equipment. The Authority has accumulated approximately $20.0 million in the Capital Projects Fund. The expenditures budgeted for capital projects in 2015 are the re-build of Station 31 at a cost of $3,2 million and $3.8 million of apparatus and vehicle replacements. The 2015 budget supports core services to our community with 79% of expenditures dedicated to these services. Support services account for 21% of the General Fund Budget, including funding for apparatus and facilities maintenance and operation, technology, insurance, human resources, wellness, finance, and planning/performance analysis. Sincerely Bob Baker Fire Chief 2 GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO South IVtetro Fire Rescue Authority Colorado For the Fiscal Year Beginning January 1,2014 Executive Director 3 SOUTH METRO FIRE RESCUE AUTHORITY Douglas & Arapahoe Counties, Colorado APPOINTED OFFICALS BOARD OF DIRECTORS Patrick Mulhern, Chairperson Laura Simon, Vice Chairperson Al Johnson, Secretary Rich Sokol, Treasurer Dave Jackson, Director Gary Culig, Director Danny Gaddy, Director FIRE CHIEF Bob Baker EXECUTIVE ASSISTANT TO THE CHIEF Barb Andrews DEPUTY FIRE CHIEF Mike Dell’Orfano ASSISTANT CHIEF OPERATIONS DIVISION Bill Potts ASSISTANT CHIEF PREPAREDNESS DIVISION Kevin Milan ASSISTANT CHIEF SUPPORT SERVICES DIVISION Vince Turner CHIEF FINANCE OFFICER Marie Hoover 4 PARKER FIRE PROTECTION DISTRICT Douglas & Arapahoe Counties, Colorado ELECTED OFFICALS BOARD OF DIRECTORS Danny Gaddy, President, Gary Culig, Vice-President Al Johnson, Secretary Ronda Scholting, Treasurer William (Bill) Shriver, Director FIRE CHIEF Bob Baker EXECUTIVE ASSISTANT TO THE CHIEF Barb Andrews DEPUTY FIRE CHIEF Mike Dell’Orfano ASSISTANT CHIEF OPERATIONS DIVISION Bill Potts ASSISTANT CHIEF PREPAREDNESS DIVISION Kevin Milan ASSISTANT CHIEF SUPPORT SERVICES DIVISION Vince Turner CHIEF FINANCE OFFICER Marie Hoover 5 SOUTH METRO FIRE RESCUE Douglas & Arapahoe Counties, Colorado ELECTED OFFICALS BOARD OF DIRECTORS Laura Simon, Chairperson Rich Sokol, Vice Chairperson Hank Eng, Secretary James Olmsted, Assistant Secretary Dave Jackson, Treasurer FIRE CHIEF Bob Baker EXECUTIVE ASSISTANT TO THE CHIEF Barb Andrews DEPUTY FIRE CHIEF Mike Dell’Orfano ASSISTANT CHIEF OPERATIONS DIVISION Bill Potts ASSISTANT CHIEF PREPAREDNESS DIVISION Kevin Milan ASSISTANT CHIEF SUPPORT SERVICES DIVISION Vince Turner CHIEF FINANCE OFFICER Marie Hoover 6 Position Administrative Support Function, not a position South Metro Fire Rescue Authority Organizational Chart 2014 Citizens Board of Directors Bob Baker Mike Dell’Orfano Fire Chief Deputy Chief Doug Bloomquist TBD Executive Officer Fire Marshal Accreditation Deputy Fire Marshal Manager Deputy Fire Marshal Niki Coleman Human Resources Vince Turner Kevin Milan Director Marie Hoover Bill Potts Becky O’Guin Assistant Chief Assistant Chief Chief Financial Assistant Chief Community Support Services Preparedness Officer Operations Division Relations Director Division Division Finance Division Community Emergency Medical Facilities Preparedness Services MetCom Life Safety Wellness Operations Fleet Training, Information Technology Human Resources Training, Emergency Manager Logistics 7 This page left intentionally blank. 8 2015 Relationship Between Funds Property Tax Capital Projects Revenues from Fund 02 Interest Parker Fire and South Metro Funds Grants 40 and 41 Building Rental Fund 09 l ta i ap s C d Fees un Paid F ees tal F Ren Operations Operations Manage Facility Services South Met- General Fund Fees for Fire, EMS, Pub Ed, Services ro Safety Fund 01 HazMat, Rescue Provided Rental payments Classes Classes Foundation Plan Reviews from tenants Pays the costs Provides of 19.68 Full Employees and Time Equivalent shared Services e l s ic ir Employees h a e p V e R le ic h e c Ve Payments From Other n s e a e Revenues From d n i e u Ambulance Agencies for Vehicle s t t n Ambulance n Classes u i e Transport Maintenance Service a v Enterprise Transport O e M R Services Fund 08 Training and Vehicle Maintenance Maintenance Vehicle Training and Facility Joint Services Ambulance Facility Transport Operation Fees 9 The graphic on the previous page shows the relationships between the services provided by South Metro Fire Rescue Authority; the various funds of the Authority, and the various sources of revenue for the Authority. Property tax and specific ownership tax revenues are transferred from the two Districts, interest on investments and fees charged for services (i.e.