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2018 Budget 1 POUDRE FIRE AUTHORITY BUDGET 2018 A PARTNERSHIP OF THE CITY OF FORT COLLINS AND THE POUDRE VALLEY FIRE PROTECTION DISTRICT, PROUDLY SERVING FORT COLLINS, TIMNATH, LAPORTE, BELLVUE, HORSETOOTH, AND REDSTONE CANYON, IN COLORADO. Cover by Madeline Noblett PFA Public Affairs and Communications Manager TABLE OF CONTENTS SUBJECT PAGE Table of Contents i Poudre Fire Authority Board and Senior Leadership Team iii Poudre Fire Authority Values, Mission, Vision iv GFOA Budget Presentation Award and Accreditation v Resolution 17 – 22 Adopting the 2018 Budget 1 Resolution 17 – 23 Setting the 2018 Fire Prevention Bureau Fees 2 Letter of Transmittal 3 Budget Message 7 - 26 Budget Message 7 Revenues 7 Unfunded Priorities 9 Reserves and Fund Balance 9 Program Budget Goals and Alignment 12 Strategic Goals and New Strategic Plan 12 Accreditation Self-Assessment Manual 14 Funding Recommendations 14 O&M Budget 14 Ongoing Program Funding 14 New Collective Bargaining Agreement and Employee Compensation 15 Non-Bargaining Unit Management Employees 15 Civilian Employees 16 Benefits Cost Increases 17 Salary Lag Funding 17 Workers’ Compensation and Property/Casualty Insurance 18 Staffing and Employee Development Changes 19 Capital Programs and Equipment 20 Long-Range Financial Plan and Unfunded Priorities 21 PFA Fund Matrix 22 PFA O&M Allocations 24 Annual Audit and Budget Basis 24 Budget Summary 2016 – 2018 25 2018 Budget | Poudre Fire Authority Page i Program Budgets and Statements 27-108 Community Safety and Service Program Budgets 29-49 Office of Chief and Administration Program Budget 50-55 Operations Program Budgets 56-69 Support Program Budgets 70-103 PFA General Fund Comparative Budget Statement Summary 104 PFA General Fund Comparative Budget Statement by Program Area 105 PFA 2018 General Fund Program Budgets by Cost Center 106 Capital Budget and Statements 107-137 Long-Range Financial Plan 107 2018 Capital Budget 107 Apparatus Replacement 110 Burn Building 117 Facilities Maintenance 118 Major Station Remodel 119 Records Management System Replacement 120 Mobile Data Terminal Replacement 121 Hose Replacement 122 Thermal Imager Replacement 123 Staff Vehicle Replacement 124 Computer/Technology Replacement 128 Radio Replacement 129 Capital Projects Fund Comparative Budget Statement 130 Capital Projects Fund Supplemental Information 131-137 Long-Range Financial Plan 138-154 Introduction 138 Financial Environment Analysis 139 A. Current Financial Environment 139 B. Future Financial Environmental Considerations—SWOT Analysis 140 Financial Strategies 142 Financial Analysis and Projections 2015-2020 144 Identified Operations and Capital Needs 2016-2022 146 Summary of Highlights 147 Unfunded Projects/Future Issues 149 Long-Range Financial Plan Spreadsheet 154 Financial Policies Financial Policies 155-159 Appendix 160-196 Budget Preparation and Adoption Process 160 The PFA, Community, Strategic Management of Community Resources 162 PFA Stations and Boundary 164 PFA Organizational Chart 165 Revenue Projections, Historical Data, and Revenue Expenditure Comparison 166 2018 Budget | Poudre Fire Authority Page ii Keep Fort Collins Great Funding History 171 Funding Formula and Revenue Allocation Formula 174 Pay Plan 177 Bargaining Unit Employee Pay Plan 178 Non-Bargaining Unit Management Pay Plan 178 Classified Employee Pay Plan 179 PFA Personnel Schedule by Division 181 Fire Prevention Bureau Fee Schedule 184 Glossary 190 Acronyms 195 2018 Budget | Poudre Fire Authority Page iii POUDRE FIRE AUTHORITY BOARD AND STAFF: PFA BOARD OF DIRECTORS PFA SENIOR LEADERSHIP TEAM Gerry Horak Tom DeMint Chair Fire Chief Fort Collins City Council Ann Turnquist Dave Pusey Administrative Services Vice Chair Director Poudre Valley Fire Protection District Ryan McLean Division Chief Mike DiTullio Support Poudre Valley Fire Protection District Bob Poncelow Division Chief Darin Atteberry Community Safety and Service City Manager City of Fort Collins Rick Vander Velde Division Chief Kristin Stephens Operations Fort Collins City Council Kirsten Howard Finance and Budget Supervisor Ron Simms Battalion Chief Planning & Analysis 2018 Budget | Poudre Fire Authority Page iv VALUES, MISSION, VISION: 2018 Budget | Poudre Fire Authority Page v The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to Poudre Fire Authority, Colorado for its annual budget for the fiscal year beginning January 1, 2017. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. Staff believes the current budget continues to conform to program requirements, and is being submitted to GFOA to determine its eligibility for another award. 2018 Budget | Poudre Fire Authority Page vi A COPY OF THE ANNUAL BUDGET IS AVAILABLE AT: www.poudre-fire.org 102 REMINGTON STREET FORT COLLINS, CO 80524 OR BY CALLING 970-416-2834 2018 Budget | Poudre Fire Authority Page vii LETTER OF TRANSMITTAL 2018 Budget December 12, 2017 To the communities of Fort Collins, Timnath, LaPorte, Bellvue, Horsetooth and Redstone Canyon: We are pleased to present the Poudre Fire Authority (PFA) 2018 Budget. As we plan for the 2018 Budget year, PFA will find itself in the second year of the City budget cycle with a smaller, yet still significant, increase to the City’s share of revenue compared to that which was realized in 2017 with the proceeds from a substantial property tax reassessment. The Budget for 2018 represents the fourth phase-in year of the revised Intergovernmental Agreement (IGA) and Revenue Allocation Formula (RAF) between the City of Fort Collins and the Poudre Valley Fire Protection District (PVFPD), which provides a buffer from otherwise modest revenue increases in the face of significant labor cost increases in past years. The stepped-up funding level that is being phased-in by the City has helped PFA begin to address lingering needs and funding shortfalls from previous years. In contrast to slower sales and use tax growth within the City, PFA will see revenue growth from another year of increased property tax valuations within the PVFPD and Town of Timnath Urban Renewal Authority (URA). In 2017, the implementation of the 2015 IGA with the Town of Timnath helped to secure the final phase of a restated allocation of resources from the City, the PVFPD and the Town, appropriately establishing each party’s share of the cost of providing quality fire and rescue services throughout the jurisdiction. Real growth in financial resources beginning in 2016 and projected for the near-term future has helped PFA focus its resources on meeting the community’s service level needs, addressing a backlog of capital and equipment needs and recalibrating the organization’s reserves and contingencies. With a City and District increase of 6.18%, or $2,000,271, in the proposed 2018 budget, additional progress will be made both in operational budgets and capital planning. As 2018 revenue projections were made, staff began to evaluate PFA’s highest priority funding needs to be addressed with new, available resources. Program managers were asked to submit recommendations for program changes and enhancements for consideration in the budget development process. The Senior Leadership Team began by prioritizing budget needs. Priorities support the implementation of the 2015 Strategic Plan and the revised goals which will be adopted in early 2018 as a part of the 2018-2023 Strategic Plan. High priorities for funding included addressing needs from the Accreditation Standard of Cover, enhancing Emergency Medical Services (EMS) in the 2018 Budget | Poudre Fire Authority Page 3 community, focusing on improved response time and work load within the downtown area, and further supporting long-term capital needs. These priorities were used to evaluate funding needs and evaluate items from the unfunded priorities list for possible inclusion in the 2018 Budget. As always, a significant portion of annual revenue growth is applied to ongoing operational needs, especially the support of existing staffing and services. An ongoing priority for PFA is to ensure that new funding is being aggressively allocated toward capital facilities and capital equipment needs. During the years leading up to the renegotiation of the IGA establishing PFA, funds were frequently diverted from capital needs to the maintenance of minimum staffing levels. With new revenue from the Revenue Allocation Formula, PFA has been able to correct this imbalance in funding. In 2018, 13% of new revenue will be allocated in an ongoing manner to capital programs, projects and equipment. This growth in allocation of resources is illustrated in Figure 1, below. In addition, .44% of new revenue will be allocated from one-time resources to fund capital projects. These funds, along with a portion of ongoing revenue from 2016 and 2017 which was previously allocated to one-time capital purposes ($720,091) will be available in future years for either ongoing O&M or capital funding needs. The purpose of allocating these on-going funds to one-time expenses has been to ensure that on-going resources are available in future years to fund staffing expansions or pay other O&M costs that exceed the annual revenue adjustments. For example, when a new station or company is added to the line, the Budget would then have ongoing funds available to absorb
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