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04/24/2012 06 Regional Fire Authority Update and Fiscal Analysis Report S �• r n . w ,,x..„110„.,,,, ,k,,,,„,.,„.„7 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. (a For Meeting of: April 24, 2012 ITEM TITLE: Council information regarding Regional Fire Authority SUBMITTED BY: Dave Willson, Fire Chief CONTACT PERSON /TELEPHONE: SUMMARY EXPLANATION: Please see attached memorandum from Chief Willson and report from Emergency Services Consulting International regarding Regional Fire Authority Fiscal Analysis. Resolution Ordinance Other (specify) Contract: Mail to: Contract Term: Amount: Expiration Date: Insurance Required? No Funding Source: Phone: APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: BOARD /COMMISSION RECOMMENDATION: ATTACHMENTS: Click to download ❑ Cover memo RFA Fiscal Analysis Administration OW 44 Fire Suppression Fire Investigation '�` & Education .4\ 401 North Front Street, Yakima, WA 98901 (509) 575 -6060 Training Fax (509) 576 -6356 Communications 49 4 DEO* www.yakimafire.com April 17, 2012 TO: Honorable Mayor, Members of City Council Michael Morales, Interim City Manager FROM: Dave Willson, Fire Chief - SUBJECT: Regional Fire Authority Update For over a year, a group made up of more than 20 business owners, citizens, elected officials, Yakima and Union Gap fire department command staff, and Yakima and Union Gap firefighters has been studying the feasibility of establishing a Regional Fire Authority ( "RFA "). The study group was tasked by the mayors of Yakima and Union Gap to determine the potential of forming an RFA consisting of the current service areas of the Yakima Fire Department, the Union Gap Fire Department, Fire District 10 (Fruitvale), and Fire District 11 (Broadway). The RFA being studied would establish a junior taxing district which would fund a new fire department operating within the service areas of the four jurisdictions. If such an RFA were established, the Yakima and Union Gap fire departments, as well as the two fire districts, would be dissolved. The study group determined that the main objective of an RFA, if established, would be to maintain the current service levels being provided by the two fire departments and the two fire districts. In late 2011, a professional consulting firm was hired to conduct a financial feasibility analysis of an RFA consisting of the service areas of the two fire departments and the two fire districts. Last week, the consulting firm's report of the financial feasibility of such an RFA was presented to the study group, which will now further analyze the report before making a recommendation regarding whether forming an RFA would be in the best interests of the cities of Yakima and Union Gap, Fire District 10, and Fire District 11. A copy of the consulting firm's report has been provided to each member of the Yakima City Council. Washington State law allows an RFA to be formed consisting of two or more jurisdictions, including municipalities and fire districts, and allows an RFA to be funded in one of two ways: Option A Allows an RFA (junior taxing district) to collect $1.50 per $1000 of assessed value in property tax to fund RFA operations. If the RFA collects $1.50 per $1000 of assessed value, municipalities included in the RFA must reduce their property tax collection by the same amount, thereby resulting in no net cost increase to taxpayers. This option requires a majority vote (50% plus 1) to pass. Option B Allows an RFA (junior taxing district) to collect $1 00 per $1000 of assessed value in property tax, plus a "benefit charge ", to fund RFA operations. If the RFA collects $1 00 per $1000 of assessed value, municipalities included in the RFA must reduce their property tax collection by the same amount. A benefit charge can be as much as 60% of the total RFA operating budget. This option requires a super - majority 60% vote to pass. In summary, the RFA financial feasibility report concluded that only Option B would provide adequate funding for an RFA consisting of the service areas of the two fire departments and the two fire districts As explained in the report, the cost of current Yakima Fire Department operations is equivalent to about $1 64 per $1000 of assessed value plus an EMS levy of about $0.21 per $1000 of assessed value, for a total of about $1 85 per $1000 of assessed value Clearly, Option A ($1.50 per $1000 of assessed value) would not provide enough revenue to fund the Yakima Fire Department alone as its current level. The report also takes into consideration facility and apparatus maintenance and replacement as well as planned cost increases in all other areas of the department based on a 10 -year history of the economics of this area and the department. Based on that data, the report concludes that Option A could not provide adequate funding for an RFA such as the model being considered. Existing funding levels of the Yakima Fire Department were also reviewed as part of the financial feasibility analysis. The findings indicate that the current budget model will not provide adequate funding for the department moving forward and that, if not altered, will lead to the increasing financial instability of the department, likely resulting in decreased service levels If an RFA consisting of the service areas of the two fire departments and the two fire districts were to collect the full 60% benefit charge allowed by law, it is estimated that revenues would initially exceed expenses Therefore, a full 60% benefit charge may not need to be collected in order to make an RFA viable A key task of the study group, after more fully analyzing the financial feasibility report, will be to make a determination regarding an appropriate benefit charge percentage If established, an RFA consisting of the service areas of the two fire departments and the two fire districts would benefit from the combined services of both municipalities, which would equate to having six to eight apparatus in service at all times, a more efficient organizational structure, and a programmed budget for continued service Additionally, the benefit charge would have to be passed by the voters every six years, thereby providing community members with a periodic opportunity to determine the continued level of service of an RFA. As mentioned, the next step in the process is for the study group to more completely examine and consider the data contained in the financial feasibility report. The members of the study group have already invested considerable time, energy, and effort and are to be commended for their commitment to the process. Ultimately, the study group will provide a recommendation to the Yakima City Council, the Union Gap City Council, and the commissioners of the two fire districts as to the feasibility of forming an RFA. Please let me know if you have any questions about the financial feasibility report or the current status of the work of the RFA study group. Yakima Fire Department, Union Gap Fire Department, Yakima County Fire District # 10, and Yakima County Fire District #11 Washington Regional Fire Authority Fiscal Analysis April 2012 €., sc1 Emergency Services Consulting 1.404,4.04,4 25200 SW Parkway Ave Suite 3 • Wilsonville • Oregon • 97070 • www ESCI us • 800 - 757 -3724 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Table of Contents Table of Figures 111 Executive Summary 1 Background 1 Summary of Findings 1 Regional Fire Authority 4 Option A Regional Fire Authority (100 percent property tax) 5 Option B — Regional Fire Authority (Benefit Charge) 5 Conclusion 7 Regional Fire Authority Explained 8 Fiscal Analysis 12 Economic Indicators 12 Historic Residential Property Sales 13 Historic Unemployment Rate 14 Annual Inflation Rate 16 Historic Financial Review of Yakima FD 18 Yakima FD Status Quo Financial Forecast 2012 — 2017 26 Historic Financial Review of Yakima County Fire District #10 32 District #10 Current Status Financial Forecast 2012 — 2017 33 Historic Financial Review of Union Gap FD 36 Union Gap FD Current Status Financial Forecast 2012 — 2017 Al Historic Financial Review of Yakima County Fire District #11 47 District #11 Current Status Financial Forecast 2012 — 2017 49 Formation of a Yakima Area RFA 53 Summary of the Initiative 53 Objective of the Initiative 53 Fiscal Analysis of Regional Fire Authority 58 RFA Financial Conclusion 65 Appendix Survey of Current Conditions 73 Survey Table 1 Organizational Governance 73 Survey Table 2 Fiscal Management 77 Survey Table 3 Organizational Management 86 Survey Table 4 Planning for Fire and Emergency Medical Protection 88 Survey Table 5 Human Resources Management 89 Survey Table 6 Informational and Technology Services 94 Survey Table 7 Organizational Staffing 96 Survey Table 8 Emergency Management 99 Survey Table 9 Emergency Communications 100 Survey Table 10 Service Delivery System 101 Survey Table 11 Emergency Services Training Program 102 Survey Table 12 Capital Improvement & Replacement 103 Survey Table 13 Yakima Station 90 105 Survey Table 14 Yakima Station 91 106 Survey Table 15 Yakima Station 92 107 Survey Table 16 Yakima Station 93 108 Survey Table 17 Yakima Station 94 109 Pagel Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 18 Yakima Station 95 110 Survey Table 19 Yakima Fire Training Center 111 Survey Table 20 Yakima Fire Apparatus Maintenance 112 Survey Table 21 Union Gap Station 85 113 Survey Table 22 Fire District #11 Station 86 114 Page n Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Table of Figures Figure 1 City of Yakima Median Value and Home Sales 2006 — 2011 13 Figure 2 Median Value and Home Sales in Union Gap 2006 —2011 14 Figure3 Unemployment 2002 -2011 15 Figure 4 Graphical Unemployment 2002 —2011 15 Figure 5 TAV Growth Rates 2013 —2017 16 Figure 6 Average CPI U History 2002 — 10!31)2011 16 Figure 7 Historic and Average CPI U Graphic 2002 — 10/31t2011 17 Figure 8 CPI U Forecast Budget Impact Graphic 2013 —2021 17 Figure 9 Yakima FD Debt 18 Figure 10 City of Yakima and Tax Rate History 2008 —2012 19 Figure 11 Yakima FD Fire Revenue History 2008 -2012 19 Figure 12 Yakima FD EMS Revenue History 2008 -2012 20 Figure 13 Yakima FD Fire Operations Expenditures History 2008 —2012 20 Figure 14 Yakima FD EMS Expenditures History 2008 —2012 20 Figure 15 Yakima FD Estimated In Direct Cost 21 Figure 16 Yakima FD Fire Operations Fund Balance History 2008 -2012 21 Figure 17 Yakima FD EMS Operations Fund Balance History 2008 -2012 21 Figure 18 Yakima FD Fire &EMS Operations Fund Balance History 2008 -2012 22 Figure 19 Yakima FD Capital Reserve Fund Balance History 2008 —2012 22 Figure 20 Yakima FD Vehicle Replacement Plan Summary 24 Figure 21 Yakima FD Unfunded Pension and Medical 2008 — 2012 26 Figure 22 TAV Growth Rates by Year 2013 —2017 27 Figure 23 Yakima FD Forecast TAV 2012 —2017 27 Figure 24 Yakima FD Fire Revenue Forecast 2012 —2017 28 Figure 25 Yakima FD EMS Revenue Forecast 2012 —2017 28 Figure 26 Yakima FD Medical and Dental Benefit Costs by Percentage 2008 —2012 29 Figure 27 Yakima FD Fire Expenditure Forecast 2012 —2017 29 Figure 28 Yakima FD EMS Expenditure Forecast 2012 —2017 29 Figure 29 Yakima FD Forecast Summary Fire Operations 2012 — 2017 30 Figure 30 Yakima FD Forecast Summary EMS Operations 2012 —2017 30 Figure 31 Yakima FD Fire &EMS Operations Fund Balance Forecast 2012 —2017 30 Figure 32 District #10 TAV and Tax Rate History 2008 —2012 32 Figure 33 Distnct#10 Revenue History 2008 —2012 32 Figure 34 District #10 Expenditures History 2008 —2012 33 Figure 35 District #10 Fund Balance History 2008 — 2012 33 Figure 36 TAV Growth Rates by Year 2013 —2017 34 Figure 37 District #10 Forecast TAV 2012 — 2017 34 Figure 38 District #10 Revenue Forecast 2012 —2017 34 Figure 39 District#10 Expenditure Forecast 2012 —2017 35 Figure 40 District #10 Forecast Summary 2012 —2017 36 Figure 41 Union Gap FD Debt 36 Figure 42 City of Union Gap TAV and Tax Rate History 2008 —2012 37 Figure 43 Union Gap FD Revenue History 2008 —2012 37 Figure 44 Union Gap FD Fire Operational Expenditures History 2008 —2012 38 Figure 45 Union Gap FD EMS Expenditures History 2008 —2012 38 Page ui Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 46 Union Gap FD Estimated In Direct Cost 39 Figure 47 Union Gap FD Fire Operations Fund Balance History 2008 —2012 39 Figure 48 Union Gap FD EMS Operations Fund Balance History 2008 — 2012 39 Figure 49 Union Gap FD Fire & EMS Operations Fund Balance 2012 —2017 40 Figure 50 Union Gap FD Capital Reserve Fund Balance History 2008 —2012 40 Figure 51 Union Gap FD Vehicle Replacement Plan Summary 41 Figure 52 TAV Growth Rates by Year 2013 —2017 41 Figure 53 City of Union Gap Forecast TAV 2012 — 2017 42 Figure 54 Union Gap FD Revenue Forecast 2012 —2017 42 Figure 55 Union Gap FD Medical and Dental Benefit Costs by Percentage 2008 —2012 43 Figure 56 Union Gap FD EMS Medical /Dental Benefit Costs by Percentage 2008 —2012 44 Figure 57 Union Gap FD Fire Expenditure Forecast 2012 —2017 44 Figure 58 Union Gap FD EMS Expenditure Forecast 2012 —2017 44 Figure 59 Union Gap FD Forecast Summary Fire Operations 2012 —2017 45 Figure 60 Union Gap FD Forecast Summary EMS Operations 2012 —2017 45 Figure 61 Union Gap FD Fire & EMS Operations Fund Balance 2012 —2017 45 Figure 62 District #11 TAV and Tax Rate History 2008 —2012 47 Figure 63 District#11 Fire Revenue History 2008 -2012 47 Figure 64 District#11 EMS Revenue History 2008 -2012 47 Figure 65 District#11 Expenditures History 2008 —2012 48 Figure 66 District #11 Fund Balance History 2008 — 2012 49 Figure 67 TAV Growth Rates by Year 2013 —2017 49 Figure 68 District #11 Forecast TAV 2012 — 2017 49 Figure 69 District #11 Fire Revenue Forecast 2012 — 2017 50 Figure 70 District #11 EMS Revenue Forecast 2012 — 2017 50 Figure 71 District#11 Expenditure Forecast 2012 —2017 51 Figure 72 District#11 Forecast Summary 2012 —2017 52 Figure 73 RFA Administration and Support Staffing (Conceptual) 54 Figure 74 RFA Administrative and Support Staffing Cost Increases (Conceptual) 54 Figure 75 RFA Fire Marshal Staffing (Conceptual) 55 Figure 76 RFA Fire Marshal Staffing Cost Increases (Conceptual) 55 Figure 77 RFA Career Operational Personnel [Conceptual] 55 Figure 78 RFA Career Operational Personnel Cost Increases(Conceptual) 56 Figure 79 RFA Organizational Chart (Conceptual) 57 Figure 80 RFA Impact on Taxable Assessed Valuation 58 Figure 81 RFA Consolidated Baseline Taxable Assessed Valuation 58 Figure 82 RFA Budgeted Baseline Consolidation Fire Revenue 2012 59 Figure 83 RFA Budgeted Baseline Consolidation EMS Revenue 2012 59 Figure 84 RFA Budgeted Consolidation Fire Expense Baseline 2012 60 Figure 85 RFA Budgeted Baseline Consolidation EMS Expense Baseline 2012 60 Figure 86 RFA Fire Operations Consolidated Expense Baseline Projected Through 2017 61 Figure 87 RFA EMS Operations Consolidated Expense Baseline Projected Through 2017 61 Figure 88 Option A RFA Fire Operations Fire Revenue 2012 —2017 62 Figure 89 Option A RFA Financial Summary Fire 2012 —2017 62 Figure 90 Option B RFA Fire Operations Consolidated Fire Revenue 2012 — 2017 63 Figure 91 Option B RFA Fire Operations Consolidated EMS Revenue 2012 — 2017 64 Figure 92 Option B RFA Financial Summary Fire 2012 -2017 64 Figure 93 Option B RFA Financial Summary EMS 2012 — 2017 65 .��..w+.. a.....,..«.m.a Page iv Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 94 Status Quo Yakima Annual Balance — All Sources /All Services 66 Figure 95 Yakima Revenue /Expense Projection 66 Figure 96 Status Quo District #10 Annual Balance —All Sources /All Services 66 Figure 97 Status Quo District #10 Revenue /Expense Projection 67 Figure 98 Status Quo Union Gap Annual Balance —All Sources /All Services 67 Figure 99 Status Quo Union Gap Revenue /Expense Projection 68 Figure 100 Status Quo District #11 Annual Balance —All Sources /All Services 68 Figure 101 District #11 RevenuelExpense Projection 69 Figure 102 Option A RFA with Regular Property Tax — All Agencies 70 Figure 103 Option A RFA Revenue /Expense — Maximum Property Tax 70 Figure 104 Option B RFA with Benefit Charge —All Agencies 71 Figure 105 Option B RFA Revenue /Expense — Maximum Benefit Charge 72 .��..w+.. a.....,..«.m.a Page v Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Executive Summary This report details the fiscal analysis of the Yakima Fire Department (YFD) Yakima County Fire District #10 (District #10) Union Gap Fire Department (UGFD) and Yakima County Fire District #11 (District #11) as they exist today and as they are forecast into the future independently and as a Regional Fire Authority The noted agencies are evaluating the potential mutual benefits and the feasibility of forming of a Regional Fire Authority ESCI has been contracted to perform the fiscal analysis portion of this deliberation Background ESCI conducted on site interviews with key stakeholders to determine the historic and current fiscal status of the four agencies Research was also completed to obtain background information bearing on the fiscal climate of the region specifically identifying factors that bear on revenues and expenses for the four agencies Research included taxable assessed valuation growth retail home sales history unemployment statistics the ten year history of the Consumer Price Index — Urban for the region revenue and expense histories for each of the four agencies and their current and projected debt liabilities The limitation of this report or any forecasting endeavor is that it relies upon data that reflects a snapshot in time and projects forward from there Communities seldom stand still and numerous events and actions can change the current conditions which if projected out can change the results of forecasts However as of this writing ESCI is not aware of any major initiatives or actions that would substantially modify the conclusions of this report Summary of Findings The Yakima County Assessor has projected that the 2012 residential values will decline by 1 to 2 percent offset slightly by growth in commercial and agricultural property There were four projects cited as meaningful development in both Yakima and Union Gap in the next few years which help offset that residential value decline Home sales in both Union Gap and Yakima have steadily declined in rate since 2006 with median prices for these homes slightly increasing in Yakima and increasing at a steeper rate in Union Gap Unemployment generally reflects the broader state and national trends in that it is high relative to the last five or six years The troubling data point is that the Yakima County unemployment peak over the last ten years was 2011 at 9 76 percent It is reasonable to conclude that as the .��..w+.. a.....,..«.m.a Page 1 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington economy slowly improves unemployment rates will eventually decline but is not likely to substantially drop in the projection horizon this study has focused on which is through 2017 The inflation rate was projected using the Consumer Price Index for all urban consumers (CPI U) reported for the 2002 through October 31 2011 period for the West Coast class BJC (population 50 000 — 1 500 000) Statistical Area as compiled by the U S Department of Labor With a low of 0 6 percent to a high of 3 5 percent over the last ten years the average inflation index rate is 2 282 percent which was used to calculate expense increases for forecasts and projections The exception to this is in salaries and benefits ESCI used 2 5 percent as the inflation factor for forecasts as a conservative approach and to reflect the potential for higher increases due to mandatory subjects of bargaining binding arbitration and comparable analyses Both Yakima and Union Gap have long term debt obligations Conversely neither district has long term debt primarily due to the contractual relationship each has with its city counterpart Yakima has a limited general obligation bond debt outstanding of $825 000 as of December 31 2011 It has provided a training tower for the department and is scheduled to mature in 2014 In addition Fire Station 92 was constructed with funds through the city Real Estate Excise Tax being used here as a dedicated revenue stream to cover the debt balance of $645 000 as of December 31 2011 This debt is due to be satisfied in 2022 Finally two fire engines and a ladder truck are being funded by the Yakima Fire Department Capital Reserve Fund and general property taxes from the city The combined total of that debt is $1 128 124 These debts are scheduled to be satisfied in 2020 and 2021 respectively Union Gap has a fire station remodel project which was funded through a limited general obligation bond with an outstanding balance of $180 000 as of December 31 2011 This debt is due to be satisfied by 2013 The city has also leased a new fire engine which is being paid through general property taxes It is scheduled to be satisfied in 2022 All four agencies receive Emergency Medical Services (EMS) levy funds which they share with the county The county allocates revenue on a formula based on population EMS response activity and other factors Each agency also receives funds according to its form of government Fire Districts #10 and #11 receive property taxes as their primary source of revenue Washington State law limits a fire district's property tax to $1 50 per $1 000 of taxable assessed valuation (TAV) if the district has at least one employee Otherwise the district is .��..w+.. a.....,..«.m.a Page 2 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington limited to $1 00 per $1 000 of TAV Conversely the two city fire departments are funded by the city general fund which is fed by various revenue streams The allocation to city fire departments Is a matter of budget deliberations and policy setting by the elected city councils Union Gap has invested additional funds into the fire department to address funding gaps which would otherwise exist in order to facilitate its EMS service delivery mission The current revenue and expense projections for each agency moving forward as stand alone (status quo) agencies are enumerated as follows Yakima Fire Department Description 2012 lit Inflict 2013 2014 2015 2016 2017 All Revenue 10 767 769 11 248 132 11 694,613 11 768,629 12 153 721 12,550,681 All Expense 10 771 231 11 295 170 11 685 486 11 798 144 12219 092 12,653 745 Balance 463 47 139 9 127 =t+14.01 5 370 103 064 Yakima County Fire District #10 Description 2012 budget 2013 2014 2015 2016 2017 All Revenue 63,545 64 119 62,227 62,829 63,460 64 115 All Expense 74 087 75,283 77 017 78 792 80,608 82 465 Balance (10,542) (11 164) (14 790) (15,963) (17 148) (18,350) Union Gap Fire Department Description 2012 b udget 2013 2014 2015 2016 2017 All Revenue 1 361 999 1 ,449 110 1 452,353 1 502 150 1 553,547 1 596,694 All Expense 1 361 999 1449 110 1452,353 1502 150 1 553,547 1,606,594 Balance 0 0 0 0 0 0 Yakima County Fire District 811 Description 2012 Oudget 2013 2014 2015 2016 2017 All Revenue 44,664 45 110 46,605 47 043 47 513 48,009 All Expense 55,275 56,548 57,850 59,182 60,545 61,940 Balance (10,611) (11,438) (11 245) (12 139) (13 032) (13,931) The financial projections for each agency as a stand alone operation is expected to be in a deficit with the exception of Union Gap which allocates additional funds to address its EMS mission and essentially grows each year to cover the expanding growth in cost These projections do not include the necessary increases to a capital reserve fund to address future apparatus costs and do not include the indirect costs incurred by the cities of Yakima and Union . ...,w+.. a...,.,..m.m,a Page 3 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Gap which absorb support costs such as finance services and legal services on behalf of their fire departments The recommended annual capital reserve investment for Yakima is $156 733 over current contributions The indirect costs for Yakima are estimated to be $426 570 (or 3 96 percent of its budget) The recommended annual capital reserve investment for Union Gap is $33 478 over current contributions The indirect costs for Union Gap are estimated to be $53 939 (or 3 96 percent of budget) Regional Fire Authority A Regional Fire Authority (RFA) is a new governmental structure whereby all participating agencies fall under this new structure with a new tax base a new operational plan and a new legal framework A planning committee is formed made up of equal representation of elected officials from each of the participating agencies It can include fire districts cities towns port districts and tnbes The planning committee develops a plan which becomes essentially the constitution of the new entity and which specifies how the RFA will be funded operated and governed The plan is presented to the electorate [which is defined as all of the voters within the footprint of the proposed RFA) of the participating agencies and is approved with either a 50 percent favorable vote Of the funding mechanism requires a simple majority) or 60 percent favorable vote (if the funding mechanism requires a supermajority such as a benefit charge or EMS levy) RFA Impact on Cities The cities of Yakima and Union Gap would have to address their tax rate if an RFA were formed City property tax is capped at a maximum statutory rate of $3 60/$1 000 (if the city includes a fireman's pension fund) Thus if a city is part of an RFA it must either a) Promise to reduce its levy rate by the equivalent amount of property taxes levied by the RFA to have a net zero impact to its taxpayers or b) Convince taxpayers that the tax increase will improve other services in the city In no event however can a city exceed its statutory maximum levy rate when adding the RFA property tax levy into the calculation An example of the impact to cities follows Page 4 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Example City MaximumTax Rate $3 601$1 000 City Actual Tax Rate $2 94/$1 000 RFA Tax Rate $1 00/$1 000 City Adjusted Tax Rate $1 94/$1 000 —for net zero impact to taxpayers or City Required Adjustment ($0 3431 000) — statutory maximum of $3 601$1 000 — creates a net increase to the city and a net increase in taxes to taxpayers Option A Regional Fire Authority (100 percent property tax) Option A assumes a Regional Fire Authority (RFA) is formed and includes all four agencies financed by property taxes at the statutory maximum of $1 50 per $1 000 TAV plus the EMS levy revenue With all services merged into a single overarching agency the projected expenses exceed revenues by a substantial and escalating rate The following table reflects the escalating costs through 2017 All Agencies — RFA Option A Description 2012 Budget 2013 2014* 2015 2016 2017 Total Revenue 12207 982 11 390244 11 318 747 11 093,310 11 206,829 11316 132 Total Ex. enditures 12,405,589 12,903233 13,163,641 13,186,357 13,512,154 13 )846274 Balance 197,607 1,512,989 1,844,894 2,093,045 2,305,325 2,530,142 The significant reduction in service that would be necessary to operate within this revenue projection or the increase in revenue that would be required to maintain existing services make this option untenable and is not recommended Option B — Regional Fire Authority (Benefit Charge) Option B assumes a Regional Fire Authority (RFA) is formed and includes all four agencies financed by a combination of lower property taxes at the statutory maximum of $1 00 per$1 000 TAV plus the EMS levy revenue plus a benefit charge equating to a statutory maximum of 60 percent of the operating budget (not including capital) With all services merged into a single overarching agency the projected revenues exceed expenses by a substantial margin All Agencies — !FA Option Description 2012 Budget 2013 2014 2015 2016 2017 Total Revenue 12207 982 14,941 )388 15 1308,211 14,918,500 15 160 1355 15,400 722 Total Ex. enditures 12 405 589 12 903 33 13 163 641 13 186 357 13 12 154 13 846 274 Balance 197,607 2,037,855 1 ,844,570 1,732,143 1,647,901 1,554,448 .....,w+.. a....,.,..«.ma Page 5 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington The reduced property tax rate coupled with the benefit charge provides funds in excess of expenses by a large enough margin that indirect costs and capital investment increases are easily absorbed Alternatively the benefit charge could be reduced to 50 percent of the operating budget and continue to meet projected expenses with a comfortable margin If the RFA plan were established to provide a scalable benefit charge the rate could be set on an annual basis to meet but not substantially exceed projected costs for a given year as long as the total benefit charge does not exceed the statutory 60 percent of operating costs maximum It is important to note that the benefit charge is based on a quantifiable formula established by the participating agencies typically developed with professional assistance The formula reflects the relative benefit a property receives from the fire authority over and above the service paid for by the property taxes Once implemented some taxpayers will see the amount they pay for fire protection reduced while others will see their total costs increase It cannot be fairly represented by dividing the total costs by the total number of properties With that stipulation the following comparison is only used as an illustration of relative changes in costs between status quo and an RFA with benefit charge Yakima 2012 2013 2014 2015 2016 2017 Status Quo Effective Levy Rate Fire 1 642 1 721 1 774 1 827 1 873 1 916 Levy Rate EMS 0214 0214 0231 0231 0231 0230 Combined Levy Rate 1 856 1 935 2 005 2 058 2 104 2 146 RFA with Benefit Charge Combined Fire Levy + Benefit Charge 2 061 2 081 2 098 2 112 2 121 Levy Rate EMS 0 231 0 231 0 231 0 231 0 230 Total Rate 2 292 2 312 2 329 2 343 2 351 Effective Tax Rate Change 0 357 0 307 0 271 0 239 0 205 Fire District #10 2012 2013 2014 2015 2016 2017 Status Quo Effective Levy Rate Fire 0 797 0 803 0 807 0 810 0 810 0 808 Levy Rate EMS 0 135 0 135 0 157 0 157 0 157 0 157 Combined Levy Rate 0 932 0 938 0 964 0 967 0 967 0 965 RFA with Benefit Charge Combined Fire Levy + Benefit Charge 2 061 2 081 2 WU 2 112 2 121 Levy Rate EMS 0 231 0 231 0 231 0 231 0 230 Total Rate 2 292 2 312 2 329 2 343 2 351 Effective Tax Rate Change 1 354 1 348 1 362 1 376 1 386 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Union Gap 2012 2013 2014 2015 2016 2017 Status Quo Effective Levy Rate Fire 1 378 1 485 1 539 1 591 1 640 1 685 Effective Levy Rate EMS 0 774 0 817 0 803 0 803 0 837 0 850 Levy Rate EMS 0178 0177 0211 0211 0211 0211 Combined Levy Rate 2 330 2 479 2 553 2 605 2 688 2 746 RFA with Benefit Charge Combined Fire Levy + Benefit Charge 2 061 2 081 2 098 2 112 2 121 Levy Rate EMS 0 231 0 231 0 231 0 231 0 230 Total Rate 2 292 2 312 2 329 2 343 2 351 Effective Tax Rate Change (0 187) (0 241) (0276) (0 345) (0395) F [re D !strict N11 2012 2013 2014 2015 2016 2017 Status Quo Effective Levy Rate Fire 0 745 0 751 0 755 0 757 0 757 0 755 Levy Rate EMS 0 135 0 136 0 157 0 157 0 157 0 157 Combined Levy Rate 0 880 0 887 0 912 0 914 0 914 0 912 RFA with Benefit Charge Combined Fire Levy +Benefit Charge 2061 2081 2098 2112 2121 Levy Rate EMS 0231 0231 0231 0231 0230 Total Rate 2 292 2 312 2 329 2 343 2 351 Effectroe Tax Rate Change 1 405 1 400 1 415 1 429 1 439 Conclusion A Regional Fire Authority is fiscally viable and sustainable if it were formed with a benefit charge (Option El) It allows for the RFA to fund indirect charges through contracts with the cities contracted out to other potential providers or absorbed into the RFA as an internal service it provides itself It also funds the capital investment necessary to maintain a reliable fleet of apparatus well into the future A scalable benefit charge if identified in the plan and approved by voters maintains flexibility in matching expenses on an annual basis Page 7 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Regional Fire Authority Explained The basis of this study is the evaluation of the financial opportunities or drawbacks posed by the formation of a Regional Fire Authority (RFA or Authority) by the Yakima Fire Department Union Gap Fire Department Yakima County Fire District #10 and Yakima County Fire District #11 An RFA is a new governmental structure whereby all participating agencies fall under this new structure with a new tax base a new operational plan and a new legal framework Should the decision be made to move forward with RFA formation the first step is the formation of a Planning Committee considered to be the most important component of the process The Planning Committee is charged with establishing the RFA Plan which specifies how the Authority will be funded operated and govemed While the formation of a Planning Committee is the first procedural step this step will likely follow many informal meetings and discussions by the participating jurisdictions Most successful RFAs have established formal steering committees composed of a wide variety of stakeholders to determine the feasibility of creating an RFA far in advance of forming the actual Planning Committee Such is the case for the key stakeholders here A formal steering committee has been in existence for some time now and has convened regularly to evaluate the potential for an RFA The steering committee has contracted with ESCI to perform the fiscal analysis of the RFA structure as identified by that committee It is important to establish a common understanding of what a Regional Fire Authority is including the tools and options available and relevant considerations The following section describes RFAs in some detail to provide a common understanding for the steering committee and other interested parties The Planning Committee is comprised of three elected officials appointed from each of the participating agencies assuring an equal voice in the decision making process for everyone involved Moving forward with the formation of an RFA also requires approval by all of the affected governing bodies pnor to the initiative being put before the voters The Planning Committee composition responsibilities and procedures are addressed in further detail in the legal considerations discussion provided in the following text .��..w+.. a.....,..«.m.a Page 8 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Funding Mechanisms A key consideration of the RFA formation decision is that of funding The RFA Plan will identify funding sources that may include some or all of the following • Fire levies —$1 50/$1 000 of taxable assessed valuation maximum • EMS levies — $0 50/$1 000 of taxable assessed valuation maximum — most commonly expires at 6 or 10 years can be permanent if approved by voters • Excess levies — amount set by governing body and approved by voters— short duration • Benefit charges — a reduced property tax rate of $1 00/$1 000 of taxable assessed valuation plus a maximum of 60 percent of the RFA s total operating costs as a charge levied against properties (mostly businesses) based on a complex formula establishing the benefit for each individual property of the RFA s service to that property (RCW 52 26 180 — 270) • Bonds for capital purchases — amount set by governing body for capital improvements only Facilities and Equipment The ownership or transfer of ownership of capital assets is not prescribed by law and is determined by the Planning Committee Although ownership of facilities and equipment may be transferred or even leased to the newly formed RFA the responsibility for existing bonded indebtedness for capital assets remains with the onginating agency until the debt is satisfied Staffing and Personnel Under a Regional Fire Authority configuration employees and members of the agencies joining forces become employees and members of the new organization including career and volunteer personnel Unless otherwise declared in the process of forming the new Authority employees will retain the rights benefits and privileges that they had under their pre existing collective bargaining agreements Roles and responsibilities assigned to agency personnel may change in a newly formed RFA when modifications are necessary in the interest of service delivery requirements For this reason involvement of key stakeholders from the onset of the process is essential Governance and Administration A Regional Fire Authonty is governed by a single governance board The number of board members and the length of their service terms are determined by the Planning Committee The statute authorizing the fonnation of an RFA does not place limitations on the number of .��w+.. a.....,..«.m,a Page 9 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington members serving on the board leaving that decision to the Planning Committee and ultimately the voters Administration of the new RFA once established becomes the responsibility of the newly established governing board The Planning Committee however will include in its body of work identification of the composition of the RFA s administrative staff The fire chief and his/her command staff as agreed to by the Planning Committee will subsequently report to the governing board Legal Consrderatrons A number of important legal considerations must be taken into account in the formation of a Regional Fire Authority Fire Protection Jurisdiction — Only fire protection jurisdictions may participate in the formation of an RFA RCW 52 26 020 defines fire protection junsdictions as fire district city town port district or Indian Tribe Reaional Fire Authority Plan — Planning Committees are tasked with forming the RFA Plan The RFA Plan outlines the plan for governance financing operations boundary changes and other considerations and is the plan that the voters are asked to approve when voting on the formation of the RFA The RFA plan is a critical document in the formation of the RFA and serves a role similar to a charter or constitution for the ongoing operation of the RFA Formation Procedures — Like any other type of significant consolidation the formation of an RFA requires careful planning Because the RFA essentially creates a new entity there is an added layer of complexity to the planning The new entity will need to register with the Internal Revenue Service (IRS) establish new accounts with the County and vendors assign and/or negotiate contracts negotiate labor agreements establish payroll systems as needed etc In other words the formation of a new entity can be incredibly time intensive and attention to detail is critical The formation of an RFA is not subject to review by a Boundary Review Board or a County legislative authority The formation of an RFA is however likely subject to compliance with the State Environmental Policy Act (SEPA) where the planning committee would in all likelihood act as the lead agency The advantages of formation of an RFA are that it allows participating agencies to retain the strengths of each agency minimize the weaknesses of each agency and establish new best practices not currently provided by the participating agencies it facilitates a contemporary look at services resources and costs finding the right balance for the community it retains (or has the potential to retain) pre existing policy makers of the participating agencies in a governing board thus utilizing the vision and commitment that initiated the implementation of strategy it Page 10 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington creates an opportunity to right size the revenue with the cost of operation and it provides an active role for the citizens being served in setting their service levels and costs The disadvantages of pursuing this strategy are the loss of autonomy the loss of a familiar structure (although RFAs operate almost identically to a fire district) the investment of time and effort to develop an RFA plan can be rendered moot by the voters and funding options are not significantly better for RFAs than they are for fire districts There are numerous configuration options with an RFA Careful consideration of the options issues contained in the RFA Plan and fiscal and operational forecasting are critical to a long term successful formation Page 11 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Fiscal Analysts This section of the report provides an overview of each organization in its current independent status and a projection through 2017 assuming the organization structure and working conditions remain unchanged This will provide a current view of the financial impact of Yakima and Union Gap departments as they are operating today (as departments of the City) and Yakima County Fire District #10 and Yakima County Fire District #11 as they currently contract for services For the city departments not all costs are currently allocated to the department as the cities absorb some support costs on behalf of their fire departments Economic Indicators Economic indicators specific to Washington Yakima County and the local area will provide the historical basis for projecting future costs that impact the operation of each organization Information in this section is provided to substantiate the forecast and projected increases in taxable assessed value (TAV) revenue and expenditures This will be accomplished by reviewing the history of retail home sales unemployment statistics and the previous ten years of the Consumer Price Index Urban (CPI U) Taxable Assessed Valve The development of the potential change in taxable assessed value for the four organizations was developed by interviews with the county tax assessor and the planning divisions from both Yakima and Union Gap There are two primary components for the Taxable Assessed Value 1 Re assessment of existing property The county assessor's office reviews and assigns revised property tax values annually with a legally mandated requirement for a site visit every six years The assessor projects that the 2012 residential value will decline between 1 and 2 percent offset by a slight growth in commercial and agricultural property 2 New Construction New construction is added to the taxable assessed value when the property is placed in service Historically $300 400 million dollars of taxable new construction is added to the tax base each year for the calculation of property tax revenue In 2011 taxable new construction was $118 million The assessor's office projects the new construction number to remain relatively low for the next fewyears Both city planning divisions identified specific projects that could provide new construction and economic growth to the area In Yakima the projects were • Continued development of the Congdon Orchards site This is a mixed use development • The old Sawmill site has been awarded $20 million in LIFT funds to create infrastructure for re developing the site This property is also zoned for mixed use Page 12 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Union Gap projects are • A $20 million 125 000 square foot facility in Washington Plaza The planning office projects this facility to be taxable in 2013 • A $20 million 120 000 square foot retail facility at Long Fiber Road and Valley Mall Boulevard The planning office projects this facility to be taxable in 2014/15 Histonc Residential Property Sales The assessors office utilizes recent residential home sales to establish new appraised values The followng figures record the numbers of existing home sales and the median value by quarter from January 2006 through September 2011 for the City of Yakima and Union Gap Retail home sales have trended down from 2006 to current in Yakima The average sale price of these homes has been in the range of $130 000 to $160 000 Figure 1 City of Yakima Median Value and Home Sales 2006 - 2011' Home Sales in Yakima, WA Court Pnoe 900 5180,000 800 5160,000 700 5140,000 600— - - 5120,000 500- - - - - $100,000 Hume Sales Per Quartet 400 - - - — 580,000 300 - 560,000 200 540,000 100 520,000 Mellen Rye 0 i , 50 Q1 Q2Q3Q4Q1Q2Q3Q4Q1 Q2Q3Q4Q1 Q2Q3Q4Q1Q2Q3Q4Q1 Q203 2006 2007 2008 2009 2010 2011 .5.gv} zau Figure 2 illustrates the number of home sales and the median value by quarter from January 2006 through September 2011 for Union Gap The chart reveals that average retail home sales are between 40 and 60 per quarter The peak sales prices of $200 000 were in first quarter of 2009 Since then the sales value of homes being sold ranged between $140 000 and $185 000 r http //www city data comlaty /Yakima Washington html Page 13 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 !Nashington Figure 2 Median Value and Home Sales in Union Gap, 2006 — 2011 Home Sales in Union Gap, WA Cant Pace 200 5200,000 180 5180,000 160 5160,000 140 5140,000 Cant of 120 5120,000 Hone Sales per Quarter 100 5100,000 80 — — — 580,000 60— — — — — — — — 560,000 40 540,000 Medan Rim 20 520,000 0 - 50 Q1 Q2Q3Q4Q1Q2Q3Q4Q1 Q2Q3Q4Q1 Q2Q3Q4Q1Q2Q3Q4Q1 Q2Q3 2006 2007 2008 2009 2010 2011 Retrieving home sale information from Zillow reaffirms the information above As of February 14 2012 939 homes are listed for sale in Yakima County' The Yakima County Assessor's office reflects that 2 028 single family homes were sold in 2011 4 Heston c Unem pl ovm ent Rate The level of employment in the region could potentially impact the number of homes being sold and the ultimate sale price In the followng table (Figure 3) the historic unemployment rates are shown for Yakima County 2 http / /www city data comlcity /Union Gap Washington html 3 http / /www allow com /homes /yakima county- washington_rb 4 http //yes co yakima wa us /Assessor /use_sales aspx Page 14 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 3 Unemployment 2002 — 2011 Year Unemployment Ten Year Rate Average 2002 965% 2003 959% 2004 850% 2005 740% 2006 679% 2007 621% 2008 684% 2009 895% 2010 9 69% 2011 976% 834% Another way to visualize the unemployment picture in Yakima County is depicted in Figure 4 Fugure 4 Graphical Unemp loyment 2002 — 2011 12 00% - 1000% S 00°» 6 00 °» 4 00% UUnemployment Rate 2 00 °% - 'Ten year Average _ 0 00° The growth in the unemployment rate from 2007 through 2011 doesn't provide any encouragement that the housing market will improve dramatically in the next few years Due to the information provided above for the purposes of projecting future growth in Taxable Assessed Valuation (TAV) the following percentage growth rates (Figure 5) will be used to calculate the 2012 TAV as the base and is projected through 2017 Page 15 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 5 TAV Growth Rates, 2013 - 2017 Year Growth Rate 2013 030% 2014 045% 2015 065% 2016 1 00% 2017 1 25% Annual Inflation Rate Inflation is also an important consideration when forecasting cost For the purpose of this analysis ESCI will use the average Consumer Price Index for all urban consumers (CPI U) reported for the 2002 through October 31 2011 period for the west coast class B/C (population 50 000 — 1 500 000) Statistical Area as compiled by the U S Department of Labor The information is displayed in both table and graphical format (Figure 6 and Figure 7) Figure 6 Average CPI U History, 2002 — 10/31/2011 Year ClI U AVG 2002 1 50% 2003 2 00% 2004 2 70% 2005 2 90% 2006 2 90% 2007 310% 2008 3 50% 2009 0 60% 2010 1 00% 2011 3 00% 2 282% 5 U S Department of Labor Bureau of Labor Statistics Consumer Price Index —All Urban Consumers Series Id CUURX400SP0 Not Seasonally Adjusted Size Class BIC (population 50,000 —1 500 n00) Page 16 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 7 Historic and Average CPI U Graphic, 2002 — 10;31;2011 4 00% - tCPI U 3 oQ% —AVG 2 OO °.% e A r 1 00°.% 0 00% I I I I I I I I 1 O0°.% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 A historic review of the ten year average Consumer Price Index - Urban (CPI U) was 2 282 percent per year This rate is used for analytical purposes during this financial review The use of this value is an estimate to project potential cost trends in future years However the actual CPI U for a given year could be higher or lower Historic data was used to develop an inflation index for the years 2013 through 2021 (Figure 8) The CPI U average increase will be applied to other revenue and expense categories of the 2012 budget to develop the financial forecast for each agency Expenditures in 2021 are projected to be approximately $1 23 for each of today's dollars Figure 8 CPI U Forecast Budget Impact Graphic 2013 - 2021 1 25 1 20 1 15 1 10 1 05 1 00 2013 2014 2015 2016 2017 2018 2019 2020 2021 Page 1 7 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Historic Financial Review of Yakima FD Yakima FD Debt Yakima Fire Department has four debt obligations Three of the four debt obligations are not recorded as budgeted expense to the fire department As shown in Figure 9 below only the lease purchase of two fire trucks is charged to the fire department budget Fire Station No 92 and the ladder truck are charged to Yakima Finance and the training tower is charged to the City Debt Fund (Account 284) with other general obligation bond debts Figure 9 Yakima FD Debt Origination Principal Funding Origination Maturity L oan Description Source Date Date P balance of Comments Amount 12131/11 Revenue to Recorded as an Two Fire Capital 3/15/2011 12/1/2020 $578 847 $523 124 expense m the Engines Fund fire department Ca .ital fund 332 REET Loan paid by Fire Station (Real REET funds No 92 Estate 5/5/2007 5/1/2022 815.000 645.000 Loan expenses Excise charged to fund Tax 281 — Finance Ladder Pro ert Loan expenses Truck o px y 8128/2008 12/1/2021 760.000 605.000 charged to fund 281 — Finance GO Bond paid Limited with mill levy of Training General 9/1/2004 12/112014 2,300,000 825,000 $005 Loan Tower Obligation expenses Bond charged to fund 284 — Cit Debt 4 451 847 2 598 124 For the purpose of this review (to collect and report all costs associated with the fire department) all of the above debt will be shown as debt expense in the financial statements Revenue from REET (Real Estate Excise Tax) funds and the GO (General Obligation) Bonds will be included in revenue for the fire department to offset the debt Revenue is not specifically recorded for the payment of the debt on the two fire engines Principal and interest payments are recorded as a charge to the capital fund Since no designated funding source has been established for this debt no income will be shown in the fire department budget to pay this amount All income in the capital fund will remain to grow the balance for future fund purchases Page 18 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington City of Yakima Taxable Assessed Value (TAV) History Figure 10 shows the histoncal TAV for the City of Yakima from 2008 through 2012 It includes the change in TAV by year and the applicable tax rate Figure 10 City of Yakima and Tax Rate History, 2008 — 2012 Description 2008 Actual 2009 Actual 2010 Actual 2011 budget 2012 Cudget TAV 4,586,923,853 5,104,315,771 5,368,959,341 5389218769 5599278037 Percent of Change from Prior Year 11 28% 5 18% 0 38% The average annual percent of change for TAV from 2009 through 2012 was an increase of 5 52 percent Yakima FD Re venue History The following figure provides a detailed review of fire operations revenue for the Yakima FD from 2008 through 2012 The City of Yakima made the decision that revenue received for service to District #10 would be transferred to the Capital Fund in 2011 Figure 11 Yakima FD Fire Revenue History, 2008 — 2012 Description 2008 2009 2010 2011 2012 Actu Actual Actual Budget Budget Cit Contribution 8 312 889 8 :25 000 9 163 154 9 015 58 9 195 805 DHS Safer Grant 72,000 69,000 27 000 0 0 State Patrol Fire Transfer 2 016 0 0 3 100 3 000 Fire Invests. ation 74 1 360 655 1 100 1 000 Trainin. Pro .rams 1250 3750 5,100 0 0 Trainin. Services 82,065 76247 76247 45000 5,000 Photostat 0 100 0 500 500 Fire Protection Services 0 16 545 404 0 0 GO Bond Revenue 293,788 267578 296,550 296550 293,875 REET Debt Revenue 17130 72275 75813 ran 72563 Total Revenue 8 820 835 9 475 388 9 701 013 9 439 721 9 571 743 Effective Tax Rate 1 812 1 729 1 707 1 673 1 642 Total fire operations revenue has increased 8 5 percent from 2008 The City's revenue contribution is the amount of funds that are required to fully fund the fire department operations budget The rate shown in Figure 11 is the effective tax rate required to fund fire operations at the same level as the City contribution to the fire departments budget The following table lists the histoncal EMS revenue for the Yakima FD * Page 19 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 12 Yakima FD EMS Revenue History, 2008 - 2012 Description Ach 2009 Actual 2010 Actual 8a 2012 Budget Department of Health 1844 1 726 2 186 1 726 1 726 Pre Hos dal Grant Interest Income 871 729 651 750 300 Eilffia ,343 993 1 ,346 241 1 ,391 820 1 118,300 1 194 Total Revenue 1 ,046,508 1 ,048,696 1 ,094,658 1 120,476 1 196 ,026 Effectwe Tax Rate 0228 0205 0204 0208 0214 Yakima FD Expenditures History Figure 13 and Figure 14 depict the historical spending for Yakima FD fire and EMS operations from 2008 through 2012 Figure 13 Yakima FD Fire Operations Expenditures Hstory 2008 -2012 Description 2008 Actual 2009 Actual 2010 Actual 2011 Budget 2012 Budget Salaries 6,379,374 6,937,373 7,087,961 6,759,757 6 894968 Benefits &Taxes 1,332,111 1,432,577 1,498,388 1,507,329 1 871 797 Supplies &Expense 631,132 595,097 565,491 555,777 579803 Interfund Transfers 93,765 98,453 103,376 106,477 117,125 Debt 384,453 411,888 445 798 510,381 508949 Total Expenditures 8,820,835 9,475,388 9 701 013 9,439 721 9,571 743 Salaries taxes and benefits account for 87 5 percent of the total 2012 fire operations budget expense which is consistent with 87 4 percent in 2008 actual expenses Figure 14 Yakima FD EMS Expenditures History 2008 -2012 Description 2008 Actual 2009 Actual 2010 Actual 2011 Budget 2012 Budget Salaries 648,510 698,458 688,492 736233 771 825 Benefits &Taxes 139,183 145,583 148,985 157,002 197,121 Supplies & Expense 128,357 178,520 108,198 107,930 107 930 I me rfun d Transfers 168263 144,177 147,850 120,739 122 813 Debt 0 0 0 0 0 Total Expenditures 1 084,313 1 166 738 1 093,525 1 121 904 1 199A89 Salaries taxes and benefits account for 80 8 percent of the total 2012 EMS operations budget expense which is an increase of 8 2 percent from 72 6 percent of 2008 actual expenses The expenditures reflected above (Figure 13 and Figure 14) would be low compared to that of an RFA as the costs do not include expenditures associated with some internal services provided by the City These costs are generally referred to as in kind or in direct charges and include payroll processing human resources accounts payable risk management legal IT '" " "" "'" Page 20 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington support budgeting and financial control /reporting To estimate this amount ESCI reviewed other clients that calculate and record a charge for services to the fire department Figure 15 Yakima FD Estimated In Direct Cost In Direct Percent Allocation Allocation Organization Cost Department to Total per Budget Allocated Budget Dollars Vancouver,Washin.ton 837,670 30729353 2726% SeaTac Washin.ton 602 282 7 598 182 7 927% Im.erialValle California 281 175 5 680 112 4950% Glenwood S. rin.s,Colorado 151,305 3,272)845 4623% A . • AII P- - • -- 3960% .e Allocation 426 570 10 771 32 3 960% Yakima FD Summary of General Fund Balance History The tables below (Figure 16 and Figure 17) summarize the historical fund activities and ending fund balance for the Yakima FD from 2008 through 2012 Figure 16 Yakima FD Fire Operations Fund Balance History, 2008 -2012 Description 2008 Actual 2009 Actual 2010 Actual 2011 Budget 2012 Budg Revenue 8,820,835 9,475,388 9,701,013 9A39,721 9571743 Expenditures Salaries 6,379,374 6,937,373 7,087,961 6,759,757 6 )394 Benefits &Taxes 1,332,111 1A32,577 1,498,388 1,507,329 1 571 797 Supplies &Expense 631,132 595,097 565,491 555277 579503 Interfund Transfers 93,765 98,453 103,376 106,477 117,125 Debt 384,453 411,888 445,798 510,381 508)349 Total Expenditures 8,820,835 9,475,388 9,701,013 9,439,721 9571743 Figure 17 Yakima FD EMS Operations Fund Balance History 2008 - 2012 Description 2008 Actual 2009 Actual 2010 Actual 2011 Budget 2012 Budget Revenue 1,046,508 1,048 )396 1,094,658 1,120,476 1,196,026 Expenditures Salaries 648,510 698,458 688,492 736233 771,625 Benefits &Taxes 139,183 145,583 148,985 157,002 197,121 Supplies & Expense 128,357 178,520 108,198 107,930 107,930 Interfund Transfers 168,263 144,177 147,850 120,739 122,813 Debt 0 0 0 0 0 Total Expenditures 1 084,313 1 166 738 1 093,525 1 121 904 1 199,489 Revenue Gain /(Loss) (37,806) (118,041) 1,132 (1,428) . (3,463) The following table summanzes the activities of both fire and EMS operations for YFD ....., a..,.,.,..m.m, Page 21 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 18 Yakima FD Fire & EMS Operations Fund Balance History, 2008 -2012 Description 2008 Actual 2009 Actual 2010 Actual 2011 Cudget 2012 Cudget Revenue 9,867,343 10,524 A84 10,795,671 10,560,197 10,767,769 Expenditures Salaries 7,027,884 7,635)831 7,776A53 7A95,990 7A66,593 Benefits &Taxes 1,471,294 1,578,160 1,647,374 1,664,331 1,868,918 Supplies & Expense 759,489 773,617 673,689 663,707 687,733 InterfundTransfers 262,029 242,630 251226 227216 239,938 Debt 384,453 411,888 445,798 510,381 508,049 Total Expenditures 9,905,149 10,642,126 10,794,539 10,561,625 10,771,231 Revenue Gain /(Loss) (37,806) (118,041) 1,132 (1,428) (3,163) Yakima FD Capital Reserve Fund The City of Yakima maintains a capital reserve fund for fire department capital acquisitions This account has been historically used for the payment of all capital expenditures The fund balance history from 2008 to 2012 is reflected in Figure 19 Figure 19 Yakima FD Capital Reserve Fund Balance History 2008 -2012 Description 2008 2009 2010 2011 2012 Actual Actual Actual Budget Budget Beginning Balance 540,154 1,491,458 1,423,480 253,164 291,851 Revenue District 10 Service Fee 0 0 0 30,000 34,500 Department of Homeland Security 0 (1,785) 0 0 0 Fire Protection Charge 957 1,037 556 2,000 0 Interest 10,883 5,618 3,000 0 0 Lease West Valley 24,000 24,000 18,000 0 0 Property Lease /Rent 22,361 22259 22259 14,016 0 Lease Cable TV 16,572 16,572 16,572 16,572 16,572 EMS Fund 95,000 95,000 75,000 75,000 75,000 Sale of Salvage 0 0 0 0 0 Miscellaneous 2,569 0 0 0 0 Capital Lease /Bond Financing 754,173 0 0 600,000 0 Sale of Fixed Assets 6,984 2,839 0 4,000 0 Operating Transfer 326,465 178,065 50,000 50,000 0 Total Revenue 1259,964 343,604 185,387 791,588 126,072 Expenditures MSA Parts 0 0 0 12,000 12,000 Small Tools & Minor Equipment 16,309 7A73 10,745 6,000 6,000 R&M Contractors 10,154 11,401 12,553 37,000 50,000 Improvements other than Building 0 0 0 58,000 0 Machinery & Equipment 229,580 276,182 761,901 30,000 30,000 Operating Equipment 52,618 44,585 27,071 28,500 28,500 Capital Leases 0 0 0 600,000 0 Station Remodel 0 71,939 543,434 0 0 Total Expenditures 308,661 411,581 1,355,703 771,500 126,500 Eridirrq Balance 1 ,191 458 1 423,480 253 164 273,252 291 423 Page 12 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington ESCI recommends that the capital reserve fund be used for the funding of a vehicle replacement plan ESCI developed a vehicle replacement plan for the Yakima FD projecting the useful life of vehicles and scheduling the replacement date for these vehicles based on the remaining useful life The replacement date assumes that all vehicles will be placed in reserve status for five years prior to disposal Figure 20 shows a vehicle replacement plan summary for Yakima FD Page 23 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 20 Yakima FD Vehicle Replacement Plan Summary Years left Reserve Vehicle Purchase Make Useful as of Cost to Required'@ Annual Reserve Number Date Life 12,31111 Replace 12131/11 Requirement Engine 92 2000 Central States Fire Engine 17 6 $425,000 275,000 25,000 Engine 93 2003 Central States Fire Engine 17 9 $425,000 200,000 25,000 Engine 95 2008 Central States Fire Engine 17 14 $425,000 75,000 25,000 Engine 94 2005 Central States Fire Engine 17 11 $425,000 150,000 25,000 2010 Rosenbauer Fire Engine 17 16 $425,000 25,000 25,000 2010 Rosenbauer Fire Engine 17 16 $425 000 25 000 25 000 Truck 93 1995 Lll 102 Aenal Platform 30 14 $950,000 506,667 31,667 Truck 91 2010 Cnmson 103 TDA Renal 30 29 $950,000 31,667 31,667 Brush 92 2008 Ford Brush Track 15 12 $65,000 13,000 4,333 Engine 2 -93 1988 Dailey 17 0 $425,000 425,000 25,000 Engine 2 -94 1991 Dailey 17 0 $425,000 425,000 25,000 Engine 91 1991 Dailey 17 0 $425,000 425,000 25,000 Engine 2 -95 1991 Dailey 17 0 $425 000 425 000 25 000 C 3.91 2003 Chevlmpala 15 7 $30,000 16,000 2,000 TO 95 1994 Chev Suburban 20 3 $35,000 29,750 1,750 TOA 1995 Ford Van 20 8 $25,000 15,000 1,250 PR 91 1997 Ford F150 20 6 $30,000 21,000 1,500 C 2 -91 2002 Chev Tahoe 4x4 15 6 $35,000 21,000 2,333 BT 2 -91 2002 Chev Tahoe 4x4 15 6 $35,000 21,000 2,333 C 91 2004 Ford 4x4 15 8 $35,000 16,333 2,333 M 3-91 2001 Chev4x4 15 5 $35,000 23,333 2,333 DF MAR 2005 Ford4x4 15 8 $35,000 16,333 2,333 BT91 2007 Ford Expedition 15 10 $35,000 11,667 2,333 DET 91 2008 Ford Expedition 15 11 $35,000 9,333 2,333 C 3-91 2009 Ford Escape 15 12 $30,000 6,000 2,000 DF Mar 2009 Ford Escape 15 12 $30,000 6,000 2,000 Command 1998 Ford Expedition 15 3 $35,000 28,000 2,333 B 91 1990 Ford F350 20 0 $35,000 35,000 1,750 AS 95 1992 Chev3500 HD 20 8 $65,000 39,000 3,250 ME 90 2000 Ford F450 4x4 Service 20 9 $35,000 19,250 1,750 R 91 2001 Braun 20 10 $98,000 49,000 4,900 B 92 1991 Ford F350 20 0 $35,000 35,000 1,750 C 3.91 2003 Chevlmpala 15 7 $30,000 B 93 2008 Ford F550 20 17 $45,000 6,750 2,250 Total Annual Funding Requirement 3,426,083 362,483 ......,,...w.,..«,.,h, Page 24 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Implementation of the above vehicle replacement plan would require a fund balance of $3,426 083 on December 31 2011 and an annual accrual /budget of $362,483 adjusted for inflation Based on the current capital fund balance to fully fund the reserve would require an infusion of $3 134 660 A large infusion to capital replacement is not a viable option for the Yakima FD An alternative would be to increase the capital fund over a 20 year period This would require an incremental contnbution to the capital fund of $156 733 per year At the end of 20 years the account would be fully funded Yakima FD Unfunded Liabilities The Yakima FD has an unfunded liability for the firefighter pension fund (FPF) and retired medical benefits for LEOFFI qualifying members Based on an actuarial report prepared by the City's actuary (Millman LLC) dated May 7 2009 for the 2008 valuation period there is a total of $33 584 000 in unfunded liability $9 289 000 for pension and $24 295 000 for medical benefits The City's policy is to pay as you go for these expenses and it tracks all activity for this liability in Fund 612 The City of Yakima collects a specific firefighter pension levy amount to fund this obligation and pays the liability based on current revenue streams Cities are authorized to collect a firefighter pension tax of $0 225 per $1 000 Figure 21 depicts the historical activity of this fund from 2008 to 2012 Page 25 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 21 Yakima FD Unfunded Pension and Medical, 2008 - 2012 Description 2008 2009 2010 2011 2012 Actual Actual Actual Estimate b udget Fund Balance 645,853 828,631 745,923 774,349 812,358 Revenue Property Tax 1,551 730 1,414 ,441 1,502 ,765 1 ,402 000 1 315 000 State Insurance Fund 70095 67034 71,170 73,169 72000 Interest Income 5,728 3,000 2,000 500 500 Total Revenue 1,627,553 1,485,075 1,575,935 1,475,669 1,387,500 Effective Tax Rate 0 3548 0 2909 0 2935 0 2738 0 2478 Expenditures Active LEOFF Medical Benefits 3 717 75 0 500 500 Paid Pension LEOFF Retirees 475,861 535,627 532,438 460,000 480,000 Pensions- City Retirees 150 276 157 315 123 732 125 000 125 000 w /disabilities Pensions- City Retirees 66173 56038 43 )340 45000 45000 w /Disabilities no Medical Pensions- City Retirees 20148 20938 21,566 22000 22000 w /Service no Medical Death Benefits 0 500 1,000 1 000 1 000 Office &Operating Supplies 18S 241 22 150 150 Professional Services 0 16000 829 1 000 12000 Direct ADM Disability 421,200 449,400 453,183 363,000 197,000 Direct ADM Service 195 000 207 200 201 574 169 200 140 000 LEOFF I Dental 12 )351 16,314 14066 15000 15000 Medicare Premiums 40 )301 44,174 48,422 126,000 150,000 Retired LEOFF I Medical 13,479 7 691 66 879 50000 96000 Benefits Paid Transportation 1 392 780 1 456 1 ,400 1 ,400 Miscellaneous Expense 688 413 688 700 700 Contingency 0 0 0 20000 20000 InterfundCharges - City 43003 54 ,477 37814 37710 38307 Services Total Expenditures 1 444 775 1 567 783 1 547 509 1 437,660 1,344 ,057 Ending Fund Balance 828,631 745,923 774,349 812,358 855,801 The City is maintaining a five year average balance of $803 412 in this fund The effective tax rate line in the table is the equivalent annual tax rate necessary to fund this expense Yakima FD Status Quo Financial Forecast, 2012 - 2017 Using the assumptions outlined in the section entitled Economic Indicators financial forecast projections were created for Yakima FD Future financial forecasts use the 2012 budget as the beginning point for all calculations Any changes made to the base data are identified in the section being reviewed *.i- v-n.nw.,..«,.,h,a Page 26 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Yak,ma FD Forecast Taxable Assessed Value (TAO The forecast percent of growth for the TAV from 2013 through 2017 are shown in Figure 22 below Figure 22 TAV Growth Rates by Year, 2013 - 2017 Year Growth Rate 2013 030% 2014 045% 2015 065% 2016 1 00% 2017 1 25% Figure 23 forecasts the changes in the TAV from 2012 through 2017 using the growth factors above Figure 23 Yakima FD Forecast TAV 2012 - 2017 Description 2012 Budget 2013 2014 2015 2016 2017 TA': 5599,278037 5516 076 272 5 641,348 516 5 578517 382 5 734 797 555 5506,482525 Yakima FD Forecast Revenue The City contribution to the revenue of fire operations is a forced value to cover the departments costs for a given year The corresponding effective tax rate is also shown to provide a comparative cost as if the department operated under an RFA All other revenue categories except debt have been inflated at the ten year average CPI U of 2 282 percent Debt revenue from REET funds and GO bonds are equal to the amortization schedule for these line items Figure 24 and Figure 25 reflect fire and EMS revenue forecasts between 2012 through 2017 Page 27 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 24 Yakima FD Fire Revenue Forecast, 2012 — 2017 Description 2012 2013 2014 2015 2016 2017 Budget Cit Contribution 9 195 805 9 663 965 10 010 069 10 372 238 10 740 855 11,126,528 DHS Safer Grant 0 0 0 0 0 0 State Patrol Fire 3,000 3,068 3 138 3,210 3,283 3,358 Transfer Fire Investi.ation 1,000 1,023 1,046 1,070 1,094 1 119 Trainin. Pro. rams 0 0 0 0 0 0 Trainin. Services 5000 5114 5231 5 35 5472 5,597 Photostat 500 511 523 535 547 560 Fire Protection 0 0 0 o 0 0 Services GO Bond Revenue 293,875 294,600 294,975 0 0 0 REETDebtRevenue 72563 75938 74150 72225 75300 73,050 Total Revenue 9 571 743 10 044 219 10 389 132 10 454 628 10 826 553 11 210,212 Effective Tax Rate 1 642 1 721 1 774 1 827 1 873 1 916 Revenue for EMS operations includes the same growth factors as fire revenue with the exception of the property tax revenue The voters of Yakima County voted to approve Resolution No 317 2011 establishing the EMS levy amount of $0 25 per $1 000 of TAV with an effective date of January 1 2014 For this analysis 2013 property revenue was calculated at the same rate as the 2012 budget The tax rate for property tax revenue for 2014 through 2016 was re set at $0 25 per $1 000 of TAV In 2017 the EMS revenue is limited to the 1 percent restriction of property tax revenue growth as dictated by RCW 84 55 0101 Figure 25 Yakima FD EMS Revenue Forecast, 2012 — 2017 Description 2012 2013 2014 2015 2016 2017 Budget Department of Hea @h 1 726 1 765 1 806 1 847 1 889 1 932 Pre hosfital Grant Interest Income 300 307 314 321 328 336 EiMilial 194 000 1 201 840 1 303,361 1 311 833 1 324 951 1 338,201 Total Revenue 1 196 026 1 203 913 1 305 480 1 314 001 1 327 169 1,340,469 Effective Tax Rate 0 214 0 214 0 231 0 231 0 231 0 230 Yakima FD Forecast Expenditures Salary wages and benefit expenses exceed 85 percent of total expenditures To accurately estimate future cost increases have been calculated with the following projections *•.— i,— n.nw.,..«,.,h,a Page 28 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington • Salaries and wages were increased at 2 5 percent This value was selected as a conservative approach to forecasting mandatory subjects of bargaining issues • Medical benefits are the fastest growing cost in this expense category from 2008 to 2012 These costs increased to 19 191 percent of permanent wages in 2012 and had an average increase in cost of 9 644 percent per year from 2009 to 2012 The table below displays the growth in percent of medical and dental by year This cost category will be calculated with a base cost of 19 191 percent of permanent wages and increased 9 644 percent per year in the analysis Figure 26 Yakima FD Medical and Dental Benefit Costs by Percentage, 2008 - 2012 Medical /Dental Medical /Dental Year pert stage of Percent of Wages Change 2008 13 603% 2009 12 215% 10 208% 2010 14 230% 16 502% 2011 16297% 14521% 2012 19 191% 17 760% Avera. a 15 107% 9 644% All expense categones were inflated at the ten year average CPI U of 2 282 percent except for debt Debt payment was forecast using the current amortizations/payment schedule Figure 27 and Figure 28 reflect forecast expenses for fire and EMS through 2017 Figure 27 Yakima FD Fire Expenditure Forecast 2012 -2017 Description 2012 Budget 2013 2014 2015 2016 2017 Salaries 6,694,968 6,862,342 7,033,901 7209748 7,389992 7,574,742 Benefits &Taxes 1 671 797 1 953,814 2 114,305 2281 500 2,455,937 2,637 566 Supplies & Expense 579,803 593,034 606,567 620,409 634567 649,048 Interfund Transfers 117,125 119,798 122,532 125,328 128,188 131,113 Debt 508,049 515231 511 828 217544 2171869 217 744 Total Expenditures 9,571,743 10,044,219 10,389,132 10,454,628 10226,553 11,210212 Figure 28 Yakima FD EMS Expenditure Forecast 2012 - 2017 Description 2012 Budget 2013 2014 2015 2016 2017 Salaries 771525 790,916 810,688 830,956 851,729 873,023 Benefits &Taxes 197,121 224,027 244,271 265,658 288,272 312,210 Supplies &Expense 107930 110,393 112,912 115 489 118 124 120,820 Interfund Transfers 122 813 125,616 128,482 131 A14 134A13 137,480 Debt 0 0 0 0 0 0 Total Expenditures 1 199,189 1 250,951 1 296,354 1,343,516 1,392,539 1 443,533 "" " "" " "" "'" Page 29 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Yakima FD Forecast Summary Fund Balance The following figures depict a summary forecast for fire and EMS operations to provide a snapshot of what the fund balance would be from 2012 through 2017 Figure29 Yakima FD Forecast Summary Fire Operations, 2012 - 2017 Description 2012 2013 2014 2015 2016 2017 Oudget Revenue 9,571,743 10 0444 219 10 389 ,132 10,454 528 10,826,553 11,210,212 Expenditures Salaries 6,694,968 6 562 342 7 0433 7,209,748 7,389,992 7,574,742 Benefits &Taxes 1 671 797 1553514 2 114 305 2,281 600 2,455,937 2,637 566 Supplies &Expense 579,803 5930434 606567 620,409 634,567 649,048 Interfund Transfers 117 125 119 798 122532 125 328 128 188 131 113 Debt 508,049 515 231 511 528 217 544 217 869 217 744 Total Expenditures 9 571 743 100444219 10 389 132 10 454528 10,826,553 11 210,212 Fire Fund Balance 0 0 0 0 0 0 Figure 30 Yakima FD Forecast Summary EMS Operations 2012 -2017 Description 2012 2013 2014 2015 2016 2017 Budget Revenue 1 196,026 1 203,913 1 305,480 1 314,001 1 327 169 1 340,469 Expenditures Salaries 771 625 790,916 810,688 830,956 851 729 873,023 Benefits &Taxes 197,121 224,027 244,271 265,658 288,272 312,210 Supplies & Expense 107 930 110,393 112,912 115 489 118 124 120,820 I nterfund Transfers 122,813 125,616 128,482 131 414 134,413 137 480 Debt 0 0 0 0 0 0 Total Expenditures 1 199,489 1 250,951 1 296,354 1 343,516 1 392,539 1 443,533 Revenue Gainl(Loss) (3 A63) (47 ,039) 9,127 (29,515) (65,370) (103,064) The figure below summarizes the activities of both fire and EMS operations for YFD Figure 31 Yakima FD Fire & EMS Operations Fund Balance Forecast 2012 -2017 Description 2012 2013 2014 2015 2016 2017 Budget Revenue 10 767 769 11 248 132 11 694,613 11 768,629 12 153 721 12,550,681 Expenditures Salaries 7 466,593 7 653,258 7 844,589 8 0440 704 8 241 722 8,447 765 Benefits &Taxes 1,868,918 2,177,841 2,358,576 2547,257 2,744210 2,949,777 Supplies & Expense 687 733 703,427 719,479 735,898 752 691 769,867 InterfundTransfers 239,938 245,413 251,014 256,742 262,601 268,593 Debt 508,049 515,231 511 828 217 544 217 869 217 744 Total Expenditures 10,771231 11295,170 11,685,486 11 ,798,144 12 219 092 12,653,745 Revenue Gain/(Loss) (30463) (47 039) 9 127 (29,515) (65,370) (103,064) "" '" " "" "'" Page 30 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Changes in assumption forTAV CPI U wages and benefits could alter the overall projection of these assumed values The assumptions and results above do not include any costs for the replacement of department vehicles or the funding of the unfunded liabilities for pension and medical insurance Page 31 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Historic Financial Review of Yakima County Fire District N10 Figure 32 below shows the historical TAV for Distnct #10 from 2008 through 2012 It includes the change in TAV by year and the applicable tax rate Fugure 32 District 1110 TAV and Tax Rate History 2008 - 2012 Description 2008 Actual 2009 Actual 2010 Actual 2011 Budget 2012 Budget TAV 59)313,957 61 677 634 64,537646 65576924 67913,846 Percent of Change from Prior Year 451 %u 464 %n 1 61% 356 %u The annual average percent of change in TAV between 2009 through 2012 was an increase of 4 15 percent District #10 Revenue History Figure 33 below provides a detailed review of revenue for District #10 from 2008 through 2012 Property tax revenue was not segregated between district operations and funds received from the county for the EMS levy ESCI estimated the amount of EMS levy funds and adjusted fire operations property tax revenue Fugure 33 District #10 Revenue History, 2008 - 2012 Description 2008 2009 2010 2011 2012 Actual Actual Actual Budget Budget Pro.ert Tax -Fire 50110 54656 55997 59199 54137 Pro.ert Tax -EMS estimate 9726 10129 8703 8853 9168 Interest Income 1 314 666 383 0 240 57 74 65 0 0 Miscellaneous Recover Prior Year 34 0 0 0 0 Total Revenue 61,241 65,378 65,017 68,052 63,545 Lev Rate Fire 0 849 0 886 0 868 0 903 0 797 Lev Rate EMS 0 165 0 164 0 135 0 135 0 135 Drsfnct #1 0 Expenditures History The following table depicts the historical spending for Distnct #10 from 2008 through 2012 ° EMS levy rate used for the estimate was taken from the actual rate received by District #11 Page 32 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 U+lashmgton Figure 34 District #10 Expenditures History, 2008 - 2012 Description 2008 Actual 2009 Actual 2010 Actual 2011 Budget 2012 Budget Salaries & Benefits Salaries &Wages 5,680 5,750 6,040 6,788 6 7158 Benefits &Taxes 1,885 421 633 720 720 Total Salaries & Benefits 7,565 6,171 6,673 7,488 7,488 Supplies & Expense Office &Operating Supplies 111 34 124 100 100 Professional Services 250 39 0 0 2,500 Accounting 0 0 0 400 400 Postage 0 8 20 25 25 Travel 1,212 392 363 1,800 1,800 Advertising 122 0 0 150 150 PO Box Rent 42 44 44 50 50 Insurance 1,090 1,090 1,281 1,300 1,300 Membership & Dues 0 0 0 600 600 Registration Fees 0 0 0 300 300 Miscellaneous 399 432 424 0 0 Total Supplies & Expense 3,226 2,040 2,256 4,725 7,225 Intergovernmental Services Fire Protection - Yakima 34,282 58348 61,531 63290 58,874 Elections 0 0 0 0 500 Total Intergovernmental 34,282 58348 61,531 63 290 59374 Total Expense 45,074 66558 - 70,460' 74,087 District #1 0 Summary of General Fund Balance History Figure 35 summanzes the historical fund activity and balance of Distnct #10 from 2008 through 2012 Figure 35 District #10 Fund Balance H sto ry, 2008 - 2012 Description 2008 2009 2010 2011 2012 Actual Actual Actual Budget Budget Fund Balance 23202 39,370 38190 32747 25296 Revenue 61241 65,378 65,017 68052 63,545 Expenditures Salaries & Wa. es 5,680 5 750 6,040 6 768 6 768 Benefits &Taxes 1,885 421 633 720 720 Su..Iies &Expense 3 226 2 140 2 256 4 725 aPiggi Inter.ov't Services 34282 58,348 61 531 63290 59374 Total Expenditures 45,074 66,558 70,460 75503 74 ,087 Endin . Balance 39 370 38 190 32 747 25 96 14 754 Dlstnct Current Status Financial Forecast. 2012 -2017 Using the assumptions outlined in the section entitled Economic Indicators projections of financial stability were created for District #10 Future financial forecasts use the 2012 budget as the beginning point for all calculations Any changes made to the base data are identified in the section being reviewed *.,- ,- ,l.nw...«,.,h,a Page 33 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington District #10 Forecast Taxable Assessed Value (TA V) Figure 36 below shows the forecast TAV growth rates for District #10 from 2013 through 2017 It includes the change in TAV by year Figure 36 TAV Growth Rates by Year, 2013 - 2017 Year Growth Rate 2013 030% 2014 045% 2015 065% 2016 1 00% 2017 1 25% Figure 37 forecast the changes in the TAV from 2012 through 2017 using the growth factors identified above Figure 37 Dstnct #10 Forecast TAV 2012 - 2017 Description 2012 Budget 2013 2014 2015 2016 2017 TAV 67,913)846 68,117,588 68,424,117 68,868,873 69,557,562 70,427,032 District #10 Forecast Revenue Property tax revenue growth is limited to 1 percent of previous year's revenue as outlined in RCW 84 55 0101 All other revenue categories have been inflated at the ten year average CPI U of 2 282 percent Figure 38 District 1110 Revenue Forecast 2012 -2017 Description 2012 2013 2014 2015 2016 2017 Oudget Pro.ert Tax Fire 54,137 54X78 55225 55,777 56,335 56,898 Pro.ert Tax EMS 9,168 9,195 6,751 6,795 6,863 6,949 Interest Income 240 245 251 257 263 269 Unrealized Gain n 0 0 0 0 0 Misc Recover Prior Year 0 0 0 0 0 0 Total Revenue 63545 64119 WPM 62829 63460 64,115 Lev Rate - Fire 3797 0603 0607 0810 0810 0808 Lev Rate EMS 0 135 U 135 0 157 0 157 0 157 0 157 Revenue for EMS operations includes the same growth factors as fire revenue with the exception of the property tax revenue The voters of Yakima County voted to approve Resolution No 317 2011 establishing the EMS levy amount of $0 25 per $1 000 of TAV effective date of January 1 2014 For this analysis 2013 property revenue was calculated at * Page 34 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington the same rate as the 2012 budget The tax rate for property tax revenue for 2014 through 2017 was re set at $0 25 per $1 000 of TAV However the amount shown is less than the calculated rate as the County retains 37 156 percent of the payment D +stnct #10 Forecast Expenditures 1Nage and benefit expenses have been increased by 2 5 percent All other expense categones vvere inflated at the ten year average CPI U of 2 282 percent Figure 39 District #10 Expenditure Forecast, 2012 - 2017 Description 2012 2013 2014 2015 2016 2017 b udget Salaries & Wages Salaries &Wages 6 768 6,937 7 111 7 288 7 471 7 657 Benefits &Taxes 720 738 756 775 795 815 Total Salaries & Wages 7,488 7,675 7,867 8,063 8,266 8,472 Supplies & Expense Office & Operating Supplies 100 102 105 107 109 112 Professional Services 2,500 2,557 2515 2,675 2,736 2,799 Accounting 400 409 418 428 438 448 Postage 25 26 26 27 27 28 Travel 1,800 1,841 1 ,883 1 ,926 1,970 2,015 Advertising 150 153 157 161 164 168 PO Box Rent 50 51 52 54 55 56 Insurance 1,300 1,330 1 ,360 1 ,391 1,423 1,455 Membership &Dues 600 614 628 642 657 672 Registration Fees 300 307 314 321 328 336 Miscellaneous 0 0 0 0 0 0 Total Supplies & Expense 7 225 7 390 7,559 7 731 7 907 8,088 Intergovernmental Services Fire Protection - Yakima 58,874 60218 61592 62,997 64A35 65,905 Elections 500 0 0 0 0 0 Total Intergovernmental 59,374 60,218 61,592 62,997 64,435 65,905 Total Expense 74,087 75,283 77,017 78,792 80,608 82,465 Dlsfnct #1 0 Forecast Summary Fund Balance The following figure (Figure 40) depicts a summary forecast for each fund to provide a snapshot of what the fund balance would be in the years 2012 through 2017 "" '" " "" "'" Page 35 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 40 District #10 Forecast Summary, 2012 — 2017 Description 2012 2013 2014 2015 2016 2017 b udget Be.innin. Balance 25296 14754 3 90 11200 7163 44310 Revenue 63 545 64 119 62 27 62 829 63 460 64 115 Ex. enditures - - - - -- Salaries & Wa. es 6 768 6 937 7 111 7 88 7 471 7 657 Benefits &Taxes 720 738 756 775 795 815 ECM 7225 7,390 7559 7,731 7,907 8,088 Inter. ov't Services 59,374 60218 61 592 62,997 64A35 65,905 Total Ex endrtures 74087 75 83 MEM 78792 80608 82465 Endm Balance 14 754 3 590 11 200 7 163 44 310 , 2 660 Changes in assumption forTAV CPI U wages and benefits could alter the overall projection of these assumed values Historic Financial ReviewofUnion Gap FD Union Gan FD Debt Union Gap FD (UGFD) has two liabilities for debt obligations The general obligation bond is not charged to the fire department Annual payments for the 2012 Emergency One Fire Engine (E One) begin in 2013 Figure 41 reflects the debt for Union Gap Figure 41 Union Gap FD Debt Origination principal Funding Origination Maturity Loan Description Source Date Date Principal Balance of Comments Amount 12/31/11 Limited Remodeling of General 1994 2013 1 100,000 180,000 Charged to Fire Station Obligation Debt Fund Bond Purchase of Lease with 2012 E One Property 2011 2022 221 196 221 196 Sovereign Typhoon Taxes Leasing LLC Pum.er Total Debt 1,321,196 401,196 For the purpose of this review to collect and report all cost associated with the fire department the above debt (Figure 41) is shown as debt expense in the financial statements Revenue from the GO Bonds will be included in revenue of the fire department to offset the debt Page 36 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Clfv of Un,on Gap Taxable Assessed Valve (TAV) History Figure 42 below shows the historic TAV for the City of Union Gap from 2008 through 2012 It includes the change in assessed value by year and the applicable tax rate Figure 42 City of Union Gap TAV and Tax Rate History, 2008 — 2012 Description 2008 Actual 2009 Actual 2010 Actual 2011 budget 2012 budget TAV 471,955,419 516,343,353 546,353)843 528,127,448 550,326,067 Percent of Change from Prior Year 1 9 41% 5 81% (3 34 %) 4 20 %u The average annual percent of change for TAV from 2009 through 2012 was an increase of 4 02 percent Figure 43 provides a detailed review of revenue segregated by fire and EMS for the Union Gap FD from 2008 through 2012 In the 2012 budget revenue in the amount of $30 000 has been included for the provision of service to District #11 Prior to 2012 District #11 didn't pay a fee but provided use of a fire station in exchange for service Figure 43 Union Gap FD Revenue History, 2008 —2012 Description 2008 2009 2010 2011 2012 Actual Actual Actual Budget Budget City Contribution — Fire 694A13 677 927 663,392 735,581 758 )387 General Obligation Bond Debt 35,000 37500 37,500 40,000 45)300 Fire Protection Services 3 A44 2)865 2,148 2,800 21800 Fire Protection Fee — District #11 0 0 0 0 30 )300 Fire Protection Services Plan 2,655 1,975 3 675 2,000 2,400 Review Total Fire Revenue 735,512 720 267 706 715 780,381 838 287 EMS Levy 94,003 93,343 96,120 93,344 98)300 City Contribution — EMS 300,085 385 )321 393,116 473,131 425,712 Total EMS Revenue 394,088 478,364 489 236 566,475 523 712 Total Revenue 1,129,600 1,198,631 1,195,951 1,346,856 1,361,999 Effective Tax Rate — City 1 471 1 313 1 214 1 393 1 378 Contribution Fire EMS Levy Rate 0 199 0 181 0 176 0 177 0 178 Effective Tax Rate — City 0 636 0 746 0 720 0 896 0 774 Contribution EMS The rate shown in Figure 43 is the effective tax rate required to generate revenue for funding the provision of fire and EMS operations at the level the city contributed from 2008 through 2012 "" '" " "" "'" Page 37 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Union Gap FD Expenditures History The following tables depict the historical spending for Union Gap FD fire operations and EMS operations from 2008 through 2012 Figure 44 Union Gap FD Fire Operational Expenditures History, 2008 - 2012 Description 2008 2009 2010 2011 2012 Actuals Actuals Actuals b udget b udget Salaries 445 406 453 112 433 525 442 036 480 364 Benefits &Taxes 121 782 128,935 139,869 137 224 155 746 Su. dies & Ex. ense 94239 57095 47397 99590 59177 Interfund Transfers 39 085 43 624 48 423 61 531 88 000 Ca.ital 0 0 0 0 10,000 Debt 35 000 37 500 37 500 40 000 45 000 Total Ex enditures 735 512 720 267 706 715 780 381 838 287 Salaries taxes and benefits account for 75 9 percent of the total 2012 fire department budget expense winch Is consistent with 77 1 percent in 2008 actual expenses Figure45 Union Gap FD EMS Expenditures History, 2008 - 2012 Descnption 2008 2009 2010 2011 2012 Actuals Actuals Actuals Budget Budget Salaries 283,883 345753 332,310 368,939 347,321 Benefits & Taxes 67 009 88 514 108 260 132 088 154 891 Su dies & Ex. ense 22 075 22 054 22 259 35 448 21 00 InterfundTransfers 21,121 22,043 26,407 30,000 0 Debt 0 0 0 0 0 Total Ex. enditures 394 088 478 364 489 236 566 475 523,712 Salaries taxes and benefits account for 95 9 percent of the total 2012 EMS budget expense which Is an increase of 6 9 percent from 89 0 percent in 2008 actual expenses The expenditures reflected above (Figure 44 and Figure 45) would be low compared to that of an RFA as the costs do not include expenditures associated with some internal services provided by the City These costs are generally referred to as in kind or in direct charges and include payroll processing human resources accounts payable risk management legal IT support budgeting and financial control /reporting To estimate this amount ESCI reviewed other clients that calculate and record a charge for services to the fire department The table below provides an estimate of in direct charges for the Union Gap FD Page 38 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure46 Union Gap FD Estimated In Direct Cost In Direct Percent Allocation Allocation Organization Cost Department to Total per Wilily et Allocated 8iiit Dollars Vancouver,Washin.ton 837,670 30729353 2 726% SeaTac Washin.ton 602 282 7 598 182 7 927% Im.erialValle California 281 175 5 680 112 4950% Glenwood S. rin.s,Colorado 151,305 3,272,845 4623% A • All' ' P- - .•[1 3960% Union Ga. FD Cost Based on Avera.e Allocation 53 '39 1 361 '99 3 960% Union Gap FD Summary of General Fund Balance ()story The following tables summarize the histoncal fund activity and balance of Union Gap FD from 2008 through 2012 Figure47 Union Gap FD Fire Operations Fund Balance History,2008 — 2012 D escrption 2008 2009 2010 2011 2012 Actual Actual Actual Budget Budget Revenue 735 512 720 267 706 715 780 381 838 87 Ex enditures - - - -- Salaries 445 406 453 112 433 525 442 036 480 64 Benefits &Taxes 121 782 128 935 139 869 137 224 155 746 Su ..lies & Ex. ense 94,239 57 D95 47 397 99,590 59 177 Interfund Transfers 39085 43.24 48423 61 531 88 100 Ca. dal 0 0 0 0 10 100 Debt 35,000 37 500 37 500 40,000 46E100 Total Ex . end dures 735 512 720 267 706 715 780 381 838 87 Figure48 Union Gap FD EMS Operations Fund Balance History 2008 —2012 Description 2008 2009 2010 2011 2012 Actual Actual Actual Oudget Oudget Revenue 394,088 478,364 489 236 566 475 523 712 Ex(enditures - - - -- Salaries 283 883 345 753 332 310 368 939 347 321 Benefits &Taxes 67 009 88,514 108 260 132 088 154,891 Su. .lies & Ex.ense 22 075 22 054 22 59 35 448 21 500 Interfund Transfers 21 121 22 043 26 407 30 100 0 Debt 0 0 0 0 0 Total E x • enditures 394 088 478 364 489 236 566 475 523 712 The following figure summanzes the activities of both fire and EMS operations for UGFD "" '" " "" "'" Page 39 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure49 Union Gap FD Fire & EMS Operations Fund Balance, 2012 —2017 Description 2008 2009 2010 2011 2012 Actual Actual Actual Budget b udget Revenue 1 129 600 1 198 631 1 195 '51 1 46 :56 1 361 999 Ex.enddures Salaries 729,289 798,865 7651835 810975 827,685 Benefits &Taxes 188 791 217 449 248 130 269 12 310 637 Su.. lies & Ex.ense 116 314 79 149 69 .56 135 138 80 677 Interfund Transfers 60206 65,668 74 830 91531 88,000 Ca.ital 0 0 0 0 10000 Debt 35 000 37 500 37 00 40 100 45 000 Total Ex enditures 1,129,600 1,198,631 1 195951 1346856 1,361,999 Fund Activd 0 0 0 0 0 Union Gap FD Capital Reserve Fund Union Gap FD maintains a capital reserve fund Historically this account is used for the payment of all capital expenditures Figure 50 reflects the history of that fund from 2008 through 2012 Figure 50 Union Gap FD Capital Reserve Fund Balance History 2008 — 2012 Description 2008 2009 2010 2011 2012 Actual Actual Actual Budget Budget Be. innin. Balance 308 902 299 563 233 875 221 38 253 196 Revenue Interfund Transfer 0 34,000 178,336 0 30,000 Interest Income 0 312 450 200 800 Total Revenue 0 34312 178786 200 30800 Ex. enditures Wireless Communications 9 339 0 0 0 0 Ladder ServiceA.reement 0 100000 0 0 0 Interest on Loan 0 n 191 323 0 0 A.. aratus 0 U 0 0 200 000 DEBEICir 0 0 0 0 50 000 Total Ex. enditures 9,339 100,000 191 323 0 250 000 Endin Balance 299 563 233 875 221 338 221 38 33 996 ESCI recommends that the capital reserve fund be used for the funding of a vehicle replacement plan ESCI developed a vehicle replacement plan for the Yakima FD projecting the useful life of vehicles and scheduling the replacement date for these vehicles based on the remaining useful life The replacement date assumes that all vehicles will be placed in reserve status for five years prior to disposal Figure 51 lists a recommended vehicle replacement plan summary for Union Gap FD Page 40 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 51 Limon Gap FD Vehicle Replacement Plan Summary Reserve Years Annual Vehicle Purchase Useful Replacement Required Number Date Mak Life left as of Cost n Reserve 12/31!11 12x31111 Requirement Engine 85 1999 Frei htllner 25 14 $425,000 $187 000 $17 000 Engine285 1999 Frei.htliner 25 16 $425,000 153,000 17000 Tender85 1884 Darle 25 0 $295,000 295,000 11800 Brush 85 1999 Ford F 450 25 19 $65,000 15,600 2,600 2012 E 1Typhoon 25 24 $421 196 16,848 16,848 1999 Suburban 15 3 $35,000 28,000 2,333 Ambulance 1999 Ford E -350 20 8 $92,000 55,200 4,600 2006 Dodge 15 10 535,000 11667 2,333 Duran•o Total Funding Requirement $762 315 $74,515 Implementation of the preceding vehicle replacement plan would require a fund balance of $890 093 December 31 2011 and an annual accrual /budget of $90 826 adjusted for inflation Based on the current capital fund balance to fully fund the reserve would require an infusion of $669 555 A large infusion to capital replacement is not a viable option for the Union Gap FD An alternative would be to increase the capital fund over a 20 year period This would require an incremental contribution to the capital fund of $33 478 per year At the end of 20 years the fund would be fully funded Union Gap FD Current Status Financial Forecast. 2012 — 2017 Using the assumptions outlined in the section entitled Economic Indicators projections of financial stability were created for Union Gap FD Future financial forecasts use the 2012 budget as the beginning point for all calculations Any changes made to the base data are identified in the section being reviewed City of Union Gap Taxable Assessed Value (TA V) Nrsfory The growth factors used forTAV are shown in Figure 52 Figure 52 TAV Growth Rates by Year 2013 — 2017 Year Growth Rate 2013 030% 2014 045% 2015 065% 2016 1 00% 2017 1 25% Page 41 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 53 forecasts the changes in the TAV from 2012 through 2017 using the growth factors identified above Figure 53 Gty of Union Gap Forecast TAV 2012 - 2017 Description 2012 dget 2013 2014 2015 2016 2017 Ou TAV 550,326,067 551 977 045 554 460,942 558 064 938 563,645,587 570 691 157 Urnon Gap FD Forecast Revenue The City contribution to the revenue of fire operations is a forced value to cover the departments costs for a given year The corresponding effective tax rate is also shown to provide a comparative cost as if the department operated under an RFA All other revenue categories except debt have been inflated at the ten year average CPI U of 2 282 percent Debt revenue from REET funds and GO bonds are equal to the amortization schedule for these line items Debt revenue from GO bonds is equal to the amortization schedule for these line items Figure 54 illustrates the revenue forecasts from 2012 through 2017 Figure 54 Limon Gap FD Revenue Forecast 2012 - 2017 Description 2012 2013 2014 2015 2016 2017 bu dget City Contribution 758,087 819,415 853 168 888 114 924,292 961 743 Fire GO Bond Debt 45,000 45,000 0 0 0 0 Fire Protection Svcs 2,800 2,864 2,929 2,996 3,064 3 134 338 22 00 01 Fire Protection Fee - 30,000 30,685 31 385 32 101 32,834 33,583 District 11 Fire Protection Svcs 2,400 2,455 2,511 2,568 2,627 2,687 Plan Reviews Total Fire Revenue 838287 900,419 889,992 925 779 962,817 1 001 147 EMS Levy 98,000 97 700 116,991 117 752 118,929 120 119 City Contribution 425 712 450,992 445,370 458,619 471 801 485,329 EMS Total EMS Revenue 523 712 548,692 562,361 576,371 590 730 605,447 Total Revenue 1 361 999 1 449 110 1 452,353 1 502 150 1 553,547 1 606,594 Effective Tax Rate - 1 378 1 485 1 539 1 591 1 640 1 685 City Cont- Fire EMS Levy Rate 0178 0177 0211 0211 0211 0211 Effective Tax Rate - 0 774 0 817 0 803 0 822 0 837 0 850 City Cont EMS Revenue for EMS operations includes the same growth factors as fire revenue with the exception of property tax revenue The voters of Yakima County voted to approve Resolution Page 42 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington No 317 2011 establishing the EMS levy amount of $0 25 per $1 000 of TAV effective date of January 1 2014 For this analysis 2013 property revenue was calculated at the same rate as the 2012 budget The tax rate for property tax revenue for 2014 through 2017 was re set at $0 25 per $1 000 of TAV with a normal withholding from the county which drives the collection rate down to 211 per $1 000 of TAV Union Gap FD Forecast Expenditures Salary wages and benefit expenses represent in excess of 76 percent of total expenditures for Union Gap FD To accurately estimate future cost increases have been calculated with the following projections • Salaries and wage were increased at 2 5 percent This value was selected as a conservative approach to forecasting mandatory subjects of bargaining issues • Fire medical benefit costs is the fastest growing cost in this expense category from 2008 to 2012 These costs increased to 34 55 percent of permanent wages in 2012 and average annual increases in cost were 10 797 percent per year from 2009 through 2012 Figure 55 displays the growth in medical and dental benefit costs as a percent of salaries and wages by year Figure 55 Union Gap FD Medical and Dental Benefit Costs by Percentage, 2008 - 2012 MedicalTental Year as a Percent Percentage of Change Wages 2008 23 090% 2009 25 170% 9 008% 2010 30 300% 20 381% 2011 33 900% 11 881% 2012 34 560% 1 917% Avera.e 29402% 10797% EMS medical benefit expenses also are a growing cost in this category from 2008 to 2012 These costs increased to 24 120 percent of permanent wages in 2012 and averaged an increase in cost of 16 751 percent per year from 2009 through 2012 Figure 56 displays the growth in medical and dental benefits as a percent of salaries and wages by year This cost category will be calculated with a base cost of 24 120 percent of wages and increased 16 751 percent per year in the analysis Page 43 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 56 Union Gap FD EMS Medical/Dental Benefit Costs by Percentage, 2008 - 2012 Year MedicaUDental as a Percent Percentage of Wages Change 2008 17 770% 2009 18 320% 3 095% 2010 11 590% 36 736% 2011 22 320% 92 580% 2012 24 120% 8 065% Avera a 18 824% 16 751% All other wage and benefit categones were increased at a 2 5 percent annual average All non wage and salary expense categories were adjusted to the ten year average CPI U of 2 282 percent except for debt Debt payment was forecast using the current amortizations /payment schedule Figure 57 Union Gap FD Fire Expendrture Forecast 2012 -2017 Description 2012 2013 2014 2015 2016 2017 Budget Salaries 480,364 492,373 504082 517299 530232 543,488 Benefits &Taxes 155746 173561 192157 211574 231 :41 252990 Su. lies & Ex.ense 59,177 60,527 61909 63,321 64,766 66,244 InterfundTransfers 88,000 90,008 92062 94163 96,312 98,510 Ca .Ital 10 000 10 228 10 462 10 700 10 945 11 194 Debt 45,000 73,721 28721 28,721 28,721 28,721 Total Ex. enditures 838,287 900,419 889,992 925 779 962,817 1 001 147 Figure 58 Union Gap FD EMS Expenditure Forecast, 2012 - 2017 Description 2012 2013 2014 2015 2016 2017 Budget Salaries 347 321 356 004 364 904 374 127 383 377 392 962 Benefits &Taxes 154,891 170 697 174,964 179,339 183,822 188,418 Su. ilies &Ex.ense 21 500 21 '91 22492 23 106 23531 24068 Interfund Transfers 0 0 0 0 0 0 Debt 0 0 u 0 0 0 Total Ex enditures 523,712 548,692 562,361 576371 590,730 605,447 Union Gan FD Forecast Summary Fund Balance The following figures depict the summary activity for each fund to provide a snapshot of what the fund balance would be in the years 2012 through 2017 ' Figure 54 is based on maintaining the current level of service and is not inclusive of potential increases in city size value annexation and growth "" '" " "" "'" Page 44 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Fugure 59 Umon Gap FD Forecast Summary Are Operations, 2012 - 2017 D es cription 2012 2013 2014 2015 2016 2017 O u d get Revenue 838287 900,419 889,992 925779 962517 1501,147 Ex.enditures - - - - -- Salaries 480564 492573 504582 517299 530232 543,488 Benefits &Taxes 155746 173561 192157 211574 231841 252,990 Su. lies & Ex4ense 59177 60,527 61 909 63521 64766 66244 Interfund Transfers 88,000 90,008 92,062 94,163 96,312 98,510 C a . ital 10,000 10228 10,462 10,700 10,945 11,194 Debt 45,000 73,721 28,721 28,721 28,721 28,721 Total Ex. endrtures 838 287 900 419 889 992 925 779 962 817 1 001 147 Fund Actmrt 0 0 0 0 0 0 Fugure 60 Umon Gap FD Forecast Summary EMS Operations, 2012 -2017 Description 2012 2013 2014 2015 2016 2017 b udget Revenue 523,712 548,692 562,361 576,371 590,730 605,447 Expenditures Salaries 347,321 356,004 364,904 374,027 383,377 392,962 Benefits &Taxes 154 891 170,697 174 964 179 339 183,822 188 418 Supplies &Expense 21 500 21 991 22,492 23,006 23,531 24,068 Interfund Transfers 0 0 0 0 0 0 Debt 0 0 0 0 0 Total Expenditures 523712 548,692 562,361 576,371 590730 605,447 Fund Actmity 0 0 0 0 0 0 The figure below summarizes the activities of both fire and EMS operations for UGFD Fugure 61 Union Gap FD Are & EMS Operations Fund Balance, 2012 -2017 Description 2012 2013 2014 2015 2016 2017 Budget Revenue 1 361 999 1 449 110 1 452,353 1 502 150 1 ,553,547 1 606,594 Expenditures - - - - -- Salaries 827 685 848,377 869,587 891 326 913 609 936,450 Benefits &Taxes 310,637 344258 367,121 390,912 415563 441,408 Su. lies & Expense 80,677 82,518 84,401 86 327 88297 90,312 Interfund Transfers 88,000 90,008 92,062 94,163 96 312 98510 Ca . ital 10,000 10228 10,462 10 700 10 945 11,194 Debt 45,000 73 721 28 721 28 721 28 721 28 721 Total Ex. endrtures 1 361 999 1 449 110 1 452,353 1 502 150 1 553 547 1 606,594 Fund Actrvrt =1-If t 0 0 0 0 0 Changes in assumption for TAV CPI U wages and benefits could alter the overall projection of these assumed values The assumptions and results above do not include any costs for the Page 45 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington replacement of department vehicles or the funding of the unfunded liabilities for pension and medical insurance Page 46 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Historic Financial Review of Yakima County Fire District #11 Figure 62 shows the historical TAV for District #11 from 2008 through 2012 It includes the change in assessed value by year and the applicable tax rate Figure 62 District #11 TAV and Tax Rate History 2008 - 2012 Description 2008 2009 2010 2011 2012 Actual Actual Actual Budget Budget 39,307,104 42,477,523 44,3601320 47,987,633 50,733,198 Percent of Change from Prior Year 807% 443% 8 18% 572% The average percentage annual change in TAV from 2009 through 2012 was an increase of 6 60 percent District #1 1 Revenue History Figure 63 and Figure 64 provide a detailed review of fire and EMS revenue for District #11 from 2008 through 2012 Figure 63 District 1111 Fire Revenue History, 2008 - 2012 Description 2008 2009 2010 2011 2012 Actual Actual Actual Dudy budget Pro. ert Taxes 38 546 39 257 37 771 38 186 37 815 Interest Income 1 339 2400 1 555 0 0 Unrealized Gain/ Loss 58 66 MOM 0 0 Scra. Sales 761 0 0 0 0 .enc De.osits 959 1888 0 0 0 Total Revenue 41,663 43,279 38,951 38,186 37,815 Tax Rate 0 981 0 924 0 851 0 796 0 745 Figure 64 D strict #11 EMS Revenue History, 2008 - 2012 Description 2008 2009 2010 2011 2012 Actual Actual Actual Budget Budget Pro.ert Taxes 6,478 6,976 5,982 6,478 6$49 Interest Income 109 58 36 0 0 Unrealized Gain/ Loss 5 (6) (9) 0 0 Scra . Sales 0 0 0 0 0 In Lieu of Tax State 4 7 5 0 0 Total Revenue 6,596 7,035 6,014 6,478 6,849 Tax Rate 0 165 0 164 0 135 0 135 0 135 .....n. �,a Page 47 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington District #11 Expenditures History Figure 65 depicts District #11 expenditures from 2008 through 2012 Figure65 District 1111 Expenditures History 2008 -2012 Description 2008 2009 2010 2011 2012 Actual Actual Actual Budget Budget Salaries Secretary 2,400 2,400 2,400 2,400 2,400 Commissioners 1,050 1,470 1510 2,500 2500 Total Salaries 3 450 3 870 4,010 4 900 4,900 Benefits &Taxes Benefit Direct 264 296 307 400 400 Total Benefits &Taxes 264 296 307 400 400 Supplies & Services Office & Operating Supplies 0 0 0 0 0 Small Tools & Minor 2 866 0 0 0 0 Equipment Professional Services 0 0 0 0 5,000 Telephone 74 0 0 5,000 0 Postage 0 0 0 75 75 Travel 0 0 220 200 200 Advertising 0 0 0 100 100 Insurance 2,895 656 3991 2,500 2500 R & M 2,491 0 6510 2,000 2,000 Service Fee Union Gap 0 0 0 0 30,000 Miscellaneous 38579 44783 7991 5,000 5,000 Interest on Tax Refunds 1 0 22 Total Supplies and Service 46,906 45439 17,834 14,875 44,875 External Taxes 111 45 73 100 100 Transfer to reserve 12 )317 Machinery and Equipment 0 6,706 5 ,000 5 ,000 Total Expenditures 62,748 56,356 22,224 25275 55,275 District #1 1 Summary of General Fund Balance History Figure 66 summarizes the fund activity and balance of District #11 from 2008 through 2012 *.....r.n..w.,..«,.,h,a Page 48 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 66 District #11 Fund Balance History, 2008 - 2012 Description 2008 2009 2010 2011 2012 Actual Actual Actual budget budget Be min Balance 15 60 inn 4 971 17 770 37 159 Revenue Fire 41 .63 43279 38951 38186 37815 Revenue EMS 6596 7935 6914 6,478 6,849 Total Revenue 48 59 50 314 44 965 44 , 64 44 664 Ex.enditures Salaries 3,450 3)870 4,010 4900 4,900 Benefit &Taxes 264 296 307 400 400 Su..lies &Ex.enses 46'06 45439 17834 14:75 44875 External Taxes 111 45 73 100 100 Transfer to reserve /Ma 0 0 0 0 Machiner and E.ui.ment 0 6 706 0 5 .00 5 000 Total Ex. enditures 62,748 56,356 22,224 25 ,275 55,275 Endin Fund Balance Wall 4 971 17 770 37 159 26 548 Distnct N11 Current Status Financial Forecast, 2012 - 2017 Using the assumptions outlined in the section entitled Economic Indicators financial forecasts were projected for Distnct #11 Future financial forecasts use the 2012 budget as the beginning point for all calculations Any changes made to the base data are identified in the section being reviewed District #11 Forecasted Taxable Assessed Value (TAV) The growth factors used for the TAV of District #11 are shown in Figure 67 Figure 67 TAV Growth Rates by Year 2013 - 2017 Year Growth Rate 2013 030% 2014 045% 2015 065% 2016 1 00% 2017 1 25% Figure 68 forecast the changes in the TAV from 2012 through 2017 using the growth factors listed above Figure 68 strict #11 Forecast TAV, 2012 -2017 Description 2012 udyet 2013 2014 2015 2016 2017 TAV 50 733 198 50 885,398 51 114 382 51 446,625 51 961 092 52,610,605 Page 49 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington District #11 Forecast Revenue Property tax revenue growth is limited to 1 percent of the previous year's revenue as outlined in RCW 84 55 0101 All other revenue categories have been inflated at the ten year average CPI U of 2 282 percent Figure 69 and Figure 70 illustrate revenue forecasts for fire and EMS operations for six years from 2012 through 2017 Figure 69 District #11 Fire Revenue Forecast, 2012 - 2017 Description 2012 Budget 2013 2014 2015 2016 2017 Property Taxes 37815 38193 38575 38961 39,350 39744 Interest Income 0 0 0 0 0 0 Unrealized Gainl(Loss) 0 0 0 0 0 0 Scrap Sales 0 0 0 0 0 0 Agency Deposes 0 0 0 0 0 0 Total Revenue 37,815 38,193 38,575 38,961 39,350 39,744 Tax Rate 0 745 0 751 0 755 0 757 0 757 0 755 Figure 70 District 1111 EMS Revenue Forecast, 2012 — 2017 Description 2012 Budget 2013 2014 2015 2016 2017 Property Taxes 6,849 6,917 8p30 8,082 8,163 8,265 Interest Income 0 0 0 0 0 0 Unrealized gainl(Loss) 0 0 0 0 0 0 Scrap Sales 0 0 0 0 0 0 In Lieu of Tax (State) 0 0 0 0 0 0 IfiTir"II°n�: ii]ir,[:J 6,849 6,917 8,030 8,082 8,163 8,265 Tax Rate 0 135 0 136 0 157 0 157 0 157 0 157 Revenue for EMS operations include the same growth factors as fire revenue with the exception of the property tax revenue The voters of Yakima County approved Resolution No 317 2011 establishing the EMS levy amount of $0 25 per $1 000 of TAV effective date of January 1 2014 For this analysis 2013 property revenue was calculated at the same rate as the 2012 budget The tax rate for property tax revenue for 2014 through 2017 was re set at $0 25 per $1 000 of TAV However the amount shown is less than the calculated rate as the County retains 37 156 percent of the payment District #11 Forecast Expenditures Wage and benefit expenses were increased by 2 5 percent All other expense categories were inflated at the ten year average CPI U of 2 282 percent except for debt Figure 71 reflects expenditure forecasts for the next five years Page 50 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 71 District #11 Expenditure Forecast, 2012 - 2017 Description 2012 Oudget 2013 2014 2015 2016 2017 Salaries Secretary 2,400 2,460 2522 2585 2549 2,715 Commissioners 2,500 2,563 2627 2,692 2,760 2,829 Total Salaries 4,900 5,023 5,148 5,277 5,409 5,544 Benefits & Taxes Benefit Direct 400 410 420 431 442 453 Total Benefits & Taxes 400 410 420 431 442 453 Supplies & Services Office & Operating Supplies 0 0 0 0 0 0 Small Tools & Minor Equipment 0 0 0 0 0 0 Professional Services 5500 5,114 5231 5,350 5,472 5597 Telephone 0 0 0 0 0 0 Postage 75 77 78 80 82 84 Travel 200 205 209 214 219 224 Advertising 100 102 105 107 109 112 Insurance 2,500 2,557 2615 2,675 2,736 2,799 R & M 2,000 2,046 21392 2,140 2,189 2,239 Service Fee - Union Gap 30,000 30,685 31385 32,101 32,834 33,583 Miscellaneous 5,000 5,114 5231 5,350 5A72 5,597 Interest on Tax Refunds 0 0 0 0 0 Total Supplies and Service 44,875 45,899 46,946 48,018 49,114 50,234 External Taxes 100 102 105 107 109 112 Transfer to Reserve 0 0 0 0 0 Machinery and Equipment 5,000 5,114 5231 5,350 5,472 5,597 Total Expenditures 55,275 56,548 57,850 59,182 60,545 61,940 District #1 1 Forecast Summary Fund Balance Figure 72 depicts the forecast summary for each fund to provide a snapshot of what the fund balance would be in the years 2012 through 2017 Changes in assumption for TAV CPI U wages and benefits could alter the overall projection of these assumed values Page 51 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 72 Dstnct #11 Forecast Summary, 2012 - 2017 Description 2012 2013 2014 2015 2016 2017 O udget Begmmnq Balance 37,159 26,584 15,111 3,866 (8,274), (21,306) Revenue Revenue - Fire 37,815 38,193 38575 38,961 39,350 39,744 Revenue - EMS 6,849 6,917 8030 8,082 8,163 8265 Total Revenue 44,664 45,111 46,605 47,043 47,514 48,009 Expenditures Salaries 4,900 5,023 5,148 5,277 5A09 5544 Benefits &Taxes 400 410 420 431 442 453 Supplies & Expense 44,875 45,899 46946 48,018 49,114 50234 External Taxes 100 102 105 107 109 112 Transfer to Reserve 0 0 0 0 0 0 tvlachinery & Equipment 5,000 5,114 5231 5,350 5,472 5597 Total Expenditures 55,275 56,548 57,850 59,182 60,545 61,940 Ending Fund Balance 26,548 15,111 3,866 (8274) (21,306) (35236) "" '" " "" "'" Page 52 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Formation of a Yakima Area RFA Summ ary of the Initiative This strategy joins the Yakima County Fire Districts #10 (District #10) and #11 (District #11) the City of Yakima (YFD) and the City of Union Gap (UGFD) into a Regional Fire Authority The concept is developed in consideration of the fact that the agencies involved have contiguous boundaries along with effective pre existing working relationships with contract protection services being provided by Yakima Fire Department to Yakima County Fire Distnct #10 and Union Gap Fire Department to Yakima County Fire District #11 Obiective of the Initiative The objective of the proposed strategy is to leverage geographic and service delivery similarities in the two city fire departments and their contract counterparts in an effort to maintain or enhance fire and emergency medical service delivery while providing operational efficiencies and reducing or stabilizing costs Discussion Approaches to service delivery are similar in these two service providers (1 e urban versus suburban versus rural) with both cities and both contract districts having significant resource constraints Fire suppression and emergency medical services are delivered to the four communities in a like manner with Yakima having a greater depth of resource concentration than does Union Gap Further both ambulance transport providers respond to all four of the junsdictions Figure 73 lists the current budgeted full time equivalent (FTE) administrative personnel positions in Yakima FD and Union Gap FD followed by the conceptual operations staffing configuration for the newly formed RFA as decided by the steering committee and a summary of the projected changes in overall staffing numbers The positions listed in this and subsequent tables do not include in kind service positions and costs from the Cities of Yakima and Union Gap Typically these would be external to the fire department and provided by other departments within city government The continuation of an in kind service agreement from the Cities of Yakima and Union Gap will need to be reviewed and negotiated in an RFA Page 53 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 73 RFA Administration and Support Staffing (Conceptual) Ttal Total Administrative YFD UGFD Current Adjustments FTEs Fire Chief 1 0 1 0 2 0 1 0 1 0 De ut Chief 0 erations 1 0 0 0 1 0 0 0 1 0 De ut Chief Su „ ort 1 0 0 0 1 0 0 0 1 0 Administrative Service S 0 0 1 0 1 0 0 0 1 0 Admin Assist 1 0 0 5 1 5 f' 1 0 Secretar 1 0 0 0 1 0 0 0 1 0 PEO 10 00 10 00 10 EMS/Trainin Ca 1 0 0 0 1 0 0 0 1 0 Trainm Lieutenant 00 00 00 1 0 1 0 Mechanic 10 00 10 00 1 0 Mechanic Assistant 00 00 00 10 10 Total Admin FTEs 8.0 25 105 05 11A Based on the above illustrated concept (Figure 73) a net increase of 0 5 FTE administrative and support positions is indicated Where two fire chiefs currently are listed the RFA will require only a single fire chief to assume oversight responsibility for the new RFA The above modifications to the administrative and support functions of the new RFA will increase headcount and provide an increase in overall administrative costs Figure74 RFA Administrative and Support Staffing Cost Increases ( Conceptuar) YFD Extended UGFD Extended Total Extended Administrative Base YFD Base UGFD WNOtes Adjustments Wages Wage Wages Wage Wages Adjusted Adjusted Fire Chief 115729 115729 85590 85590 201,419 85590 115729 De Chief O.erations 104513 104513 0 0 104513 0 104513 De Chief Su 90707 90,707 0 0 90707 0 90707 Admin Service S. ecialist 0 n 67 182 67 182 67 182 0 67 182 Admin Assist 55 577 55 577 46 25 23 263 78 839 23 63 55 577 Secretar 44 865 44 865 0 0 44 865 0 44 865 PEO 97 881 97 881 0 0 97 881 0 97 881 EMSITrainm Ca 94368 94368 0 0 94368 0 94368 Tramm Lieutenant 0 0 0 0 0 70FB93 78,693 Mechanic 67,890 67,890 0 0 67,890 U 67,890 Mechanic Assistant 0 0 0 0 0 55,000 55,000 Total Admin 671,929 176,135 848,064 24,741 872,804 Administrative staffing projected cost increase equals $24 741 plus applicable benefit cost roll ups * •"""""s.."""'"""„” Page 54 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington In addition to the restructuring of the Administrative area the Fire Marshal function will be segregated as an enterprise fund This function will be totally self funded with fees as an option for the two cities This decision was also made by the steering committee The next figure shows the cost of staffing for the Fire Marshal function Figure 75 RFA Fire Marshal Staffing (Conceptual) Fire Marshal YFD UGFD Current Fire Adjustments FTEs Fire Marshal u 0 0 1 0 1 0 De.ut Fire Marshal 0 0 0 10 10 0 0 10 10 Total Fire Marshal 0 0 0 30 30 Current to forecast wage and benefit costs are shown by position in the following figure Figure 76 RFA Fire Marshal Staffing Cost Increases (Conceptual) Total YFD Extended UGFD Extended Extended Fire Marshal Base YFD Base UGFD Wa Adjustments Wages Wage Wages Wage Wa Adjusted Adjusted Fire Marshal 0 0 0 0 0 97 881 97 881 De. ut Fire Marshal 0 0 0 u u 77 668 77 668 r 0 0 0 3 3 44865 44865 Total Fire Marshal 0 -- 0 220 414 220 414 The analysis continues in Figure 77 with a comparison of current operational personnel to those that would be included in the conceptual approach to an RFA Figure 77 RFA Career Operational Personnel (Conceptual) Ttal Total Operations YFD UGFD Current Adjustments FTEs Battalion Chief 3 0 0 0 3 0 0 0 3 0 Ca.tain 60 30 90 00 90 Lieutenant 120 0 0 120 00 120 IlirThil 560 60 620 00 620 Firef•hter /Pararnedic 3 0 00 00 00 00 Intern 00 00 00 00 00 Total Career 77 0 9 0 86.0 0.0 862 The conceptual illustration results in no change in total career operational personnel ,... 5 nw..c ""b,.., Page 55 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington The table below calculates a cost increase in total wages due to the pay level discrepancies between the Yakima FD and Union Gap FD assuming the top of the affected range as a conservative approach Figure 78 depicts the pay level changes/equalization by pay category Figure 78 RFA Career Operational Personnel Cost Increases(Conceptual) YFD Extended UGFD Extended Total Extended Operations Base YFD Base UGFD Wages Not Adjustments Wages Wage Wages Wage Wages Adjusted Adjusted Career Battalion Chief 98)315 294,045 0 0 294,045 0 294)345 Captain 87249 523,494 71564 214,693 738,187 47,055 785242 Lieutenant 78 593 944,316 0 0 944,316 0 944316 Firefighter(FF) 70,423 3,943,688 54,174 379,217 4,322,905 113,744 4,436 )349 Total Career 5,705,543 593,910 6299,453 160,799 6,460252 The wage equalization projected cost Increase will be $160 799 plus applicable benefit cost roll ups Page 56 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 79 RFA Organrzatuonal Chart fj art (Conceptua Board of Directors 1 • Chief 1 ~ t Deputy Chief Administrative Deputy Chief Operations Seruces Support Speaalist ti I Battalion Chiefs Public Education EMS/Framing Fire Marshal Admnistrauie Officer Captain Assistant Mechanic Deputy Captains (B) Secretary Are Marshal Lieutenants (15) Training LT Mechanic Firefighters (53) Assistant Secretary 8 Client provided conceptual organizational chart * Page 57 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Fiscal Analysts of Reatonal Fire Authority The 2012 budget data provided by the clients was used to consolidate Yakima FD Union Gap FD District #10 and District #11 into a combined RFA as detailed in the following discussion Yakima FD and Union Gap FD operate as departments of the cities general fund budget Financing for the municipal fire departments is denved from a variety of sources available to each city The elected officials by adopting the municipal budget determine how much or wtlat revenue sources are dedicated to provide fire protection Fire districts and Regional Fire Authorities on the other hand have specific revenue sources and limits identified by statute RFA Consolidated Taxable Assessed Value Projected increases for new construction and assessed value of existing properties utilize the same assumptions used in the existing conditions portion of the report Figure 80 demonstrates the assumptions used to develop future TAV amounts Figure 80 RFA Impact on Taxable Assessed Valuation Year Growth Rate 2013 030% 2014 045% 2015 065% 2016 1 00% 2017 1 25% Figure 81 provides a view of the consolidated TAV for the combined organization Figure 81 RFA Consolidated Baseline Taxable Assessed Valuation Year Yakima Union Gap District #10 District #11 Total 2012 5,599278 A37 550,326,067 57 913946 50,733,198 6268,251,548 2013 5,616 )376272 551,977,045 68,117,588 50,885,398 6287,056,303 2014 5 641,348 516 554 460,942 68 424 117 51 114 382 6,315,348,056 2015 5678 )317,382 558,064,938 68568573 51446,625 6,356,397818 2016 5 734 797555 563,645,687 69,557,562 51 961 092 6,419,961 797 2017 5806,482,525 570,691 157 70,427)332 52,610,605 6500,211 319 RFA Revenue for Baseline Year 2012 The initial development of fire operations revenue was to combine the 2012 budget data into a consolidated statement Figure 82 and Figure 83 depict an inter governmental transfer of the Fire Control Services fee from District #10 to Yakima and District #11 to Union Gap The amount of the transfer of these payments is removed from the revenue consolidation By Page 58 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington removing these items revenues and expenses are shown in the proper category classification for financial reporting Figure 82 RFA Budgeted Baseline Consolidation Are Revenue 2012 District District YFD UGFD *10 #11 Eliminations Consolidated Description 2012 2012 2012 2012 & 2012 Budget b udget b udget Budget Budget Adjustments Eggifflial 195,805 758,087 54 137 37 815 0 10,045,844 DHS Safer Grant 0 0 0 0 0 0 State Patrol Fire Transfer 3,000 0 0 0 0 3,000 Firelnvesti.ation 1000 2800 0 0 0 3800 Fire Protection Fee FD #11 0 30 000 0 0 0 000 0 Plan Reviews 0 2,400 0 0 0 2,400 Trainin. Services 5000 0 0 0 0 5000 Photostat 500 0 0 0 0 500 Interest Income 0 0 245 0 0 245 GO Bond Revenue 293 875 45 000 0 0 0 338 875 REET Debt Revenue 72 563 0 0 0 0 72 563 Total Revenue 9,571,743 838,287 54,382 37,815 0,000 10,472,227 Effective Tax Rate 1 642 1 378 0 803 0 745 1 603 Figure 83 RFA Budgeted Baseline Consolidation EMS Revenue 2012 District District YFD UGFD *10 #11 Eliminations Consolidated Description 2012 2012 2012 2012 & 2012 b udget Budget Budget Budget Budget Adjustments Department of Health — 1 726 0 0 0 0 1 725 Pre hos.italGrant Interest Income 300 0 0 0 0 300 Cit Contribution 0 425 712 0 0 0 425 712 Pro. ert Taxes — EMS Lev 1 194 000 98 000 9 168 6 849 0 1 08 017 Total Revenue 1,196,026 523,712 9,168 6,849 0 1,735,755 Effective Tax Rate 0 214 0 952 0 135 0 135 0 277 The consolidation of the four agencies fire operations will result in a combined effective tax rate of $1 595 per $1 000 of TAV for fire and $0 277 per $1 000 TAV for EMS The high rate for EMS is due to the City of Union Gap contributing to the fire department to subsidize EMS services RFA Expense for Baseline Year 2012 The initial development of fire operations expense combines the 2012 budget data into a consolidated statement Figure 84 and Figure 85 depict an inter government transfer of the Fire Control Services fee from District #10 to Yakima and District #11 to Union Gap The amount of the transfer is removed from the expense consolidation By removing this item revenue and * ..,.'rn,— .,..«,.,h," Page 59 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington expense are shown in the proper category classification for financial reporting Cost increases for staffing and pay equalization are shown as adjustments to the consolidation Figure84 RFA Budgeted Consolidation Fire Expense Baseline 2012 YFD 2012 UGF0 Dist #10 Dist #11 Eliminations Consolidated" Description Budget 2012 2012 2012 & 2012 Budget Budget D udget D udget Adjustments Salaries 6 694 968 480 364 6 768 4 '00 185 539 7 372 539 Benefits &Taxes 1,671,797 155746 720 400 46,3 3 1 1,874,995 IMITERI 579 803 59 177 6 425 12 475 0 657 880 Interfund Transfers 117 125 88 000 60 174 32 00 188 874 208 925 Err 0 10,000 0 5000 0 15,000 Debt 508 049 45 000 0 0 0 553 049 Total Ex )endrtures 9,571 743 838,287 74,087 55 ,275 142,996 10,682,388 Figure 85 RFA Budgeted Baseline Consolidation EMS Expense, Baseline 2012 UGFD Dist #10 Dist#11 Eliminations Description YFD 2012 2012 2012 2012 & Consolidated Dud get Budget Budget Budget Adjustments 2012 D udget Salaries 771 625 347 321 0 0 0 1 118 946 Benefits &Taxes 197 121 154 891 0 0 0 352 012 Su. dies & Ex. ense 107 930 21 500 0 0 0 129 430 Interfund Transfers 122 813 0 0 0 0 122 813 Debt 0 0 0 0 0 0 Total Ex. enditures 1 199 489 523 712 0 0 0 1 723 201 The consolidated information is used to project future operation of the newly formed RFA RFA Expense for Prole -Don through 201 7 Figure 86 and Figure 87 calculate the consolidated fire expense and EMS expense for the new organization Manpower and fringe benefits are increased at 2 5 percent per year with the exception of medical insurance which was increased at the historic amount for Yakima of 9 644 percent All other line items with the exception of debt have been increased by the ten year average CPI U of 2 282 percent Debt Is shown at the amortization level of the current debt instrument 9 Expenditures for District 10 & 11 have not been eliminated from the consolidated budget as they include fire commissioner related expenses that would remain after an RFA is formed While leaving all costs included is a conservative approach some of the districts costs will be elimination in an RFA *....,,.,n—H....«,.,h," Page 60 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 86 RFA Fire Operations Consolidated Expense, Baseline Projected Through 2017 Description Consolidated 2013 2014 2015 2016 2017 2012 bu dget Salaries 7 372 539 7 556 853 7 745 774 7 939 419 8 137 '04 8 41 52 Benefits &Taxes 1 874 995 2 072 844 2 128 148 2 185 361 2 44 .10 2 06 137 IMITEEMEM 657 880 672 893 688 248 703 954 720 118 736 449 Interfund Transfers 208 925 213 693 218 569 223 557 228 .58 233 :76 C a . ital 15 000 15 342 15 692 16 051 16 417 16 791 Debt 553 049 588 952 540 548 246 264 246 89 246 464 Total Ex. enditures 10 682 388 11 120 577 11 336 981 11 314 606 11 94 197 11 ; 80 ' 70 Figure 87 RFA EMS Operations Consolidated Expense Baseline Projected Through 2017 D escri ption Consolidated 2012 2013 2014 2015 2016 2017 diet Salanes 1 118,946 1 146,920 1 175 593 1204982 1 235 107 1 265,985 Benefits &Taxes 352 012 377 737 387 181 396 :60 406 782 416 951 Su. dies & Ex 129430 132384 135405 138495 141 655 144888 Interfund Transfers 122,813 125,616 128,482 131 A14 134,413 137 480 Debt 0 0 0 0 0 0 Total Ex enditures 1 723 201 1 782 656 1 826 660 larMalbEILI 1 917 957 1 965 304 Option A Operations Revenue with Regular Property Taxes— Future Protections. 2012 — 2017 In Figure 88 ESCI calculates the consolidated fire revenue for the new organization Included in the property revenue is the assumption that the new entity's tax rate will be established at the maximum regular property tax rate allowed for a fire authority of $1 50 per $1 000 of TAV in compliance with RCW 52 26 Also included is re setting of the EMS levy at $0 25 per $1 000 of assessed property valuation in 2014 All other line items have been increased by the ten year average CPI U of 2 282 percent Page 61 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 88 Option A RFA Fire Operations Fire Revenue, 2012 - 2017 Description Consolidated 2013 2014 2015 2016 2017 2012 Oudget City Contribution/ 10 000;344 9,430 584 9,473,022 9,534,597 9529943 9 726,242 Property Tax DHS Safer Grant 0 0 0 0 0 0 State Patrol Fire 3900 3,068 3138 3,210 3283 3,358 Transfer Fire Investigation 3800 3)887 3975 4966 4159 4254 Fire Protection 0 0 0 0 0 0 Fee FD #11 Plan Reviews 2,400 2,455 2,511 2,568 2927 2,687 Training Services 5900 5,114 5,231 5,350 5,472 5,597 Photostat 500 511 523 535 547 560 Interest Income 245 251 257 263 269 275 GO Bond 338 875 294900 294,975 0 0 0 Revenue REET Debt 72 563 75.938 74 150 72,225 75 300 73,050 Revenue Total Revenue 10,427227 9,816,408 9,857,782 9,622,814 9,721,600 9,816,023 Effective Tax Rate 1 595 1 500 1 500 1 500 1 500 1 496 In Option A of the RFA model fire revenue will be reduced by approximately $610 000 in 2013 due to the reduction in the equivalent property tax revenue In 2017 the 1 percent property tax limitation as dictated by RCW 84 55 0101 takes effect Option A RFA Summary of Operations Expenditures Revenue and expenditure projections for 2012 through 2017 for RFA Option A are provided in Figure 89 Figure 89 Option A RFA Financial Summary Fire, 2012 - 2017 Description 2012 2013 2014 2015 2016 2017 Oudget Revenue 10,472227 9;316 A08 9957 782 9922 814 9 721 600 9916923 Expenditures Salaries 7,372,539 7,556;853 7,745,774 7,939A19 8,137,904 8,341,352 Benefits &Taxes 1 874995 2972;844 2 128 148 2 185 361 2244910 2,306937 Supplies &Expense 657980 672;893 688248 703,954 720918 736,449 InterfundTransfers 208,925 213993 218,569 223,557 228,658 233,876 Capital 15,000 15,342 15,692 16E151 16A17 16,791 Debt 553949 588952 540,548 246264 246589 246 Total Expenditures 10,682,388 11 ,120,577 11,336,981 11,314 906 11,594,197 11,880,970 Fire Fund Balance (210,161) (1,304,168) (1,479,198) (1,691,792) (1,872,597) (2 ,064,948) "" '" " "" "'" Page 62 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Option A funding of an RFA for fire services would result in a negative cash flow each year from $1 3 million in 2013 to $2 1 million in 2017 Based on the data presented and with the assumptions listed if Option A is selected to fund fire operations the new RFA will be operating with a cumulative deficit funding of $8 4 million for fire operation by 2017 Option 8 Operations Revenue with Benefit Charge - Future Protections 2012 - 2017 In Figure 90 ESCI calculates the consolidated fire revenue for the new organization assuming that the new taxing entity's tax rate includes the benefit charge with the regular tax rate set at $1 00 per $1 000 of TAV plus 60 percent of the operating costs established as a benefit charge Also included is re setting of the EMS levy at$0 25 per$1 000 of assessed property valuation in 2014 All other line items have been increased by the ten year average CPI U of 2 282 percent Figure 90 reflects a regional fire authority fire and EMS operations revenues through 2017 Figure 90 Option B RFA Fire Operations Consolidated Fire Revenue, 2012 - 2017 Description Consolidated 2013 2014 2015 2016 2017 2012 Budget City Contribution/ 10,045,844 6,287 056 6,315,348 6,356,398 6 419 962 6 484 161 Property Tax Benefit Charge a 0 6,694 372 6,847 138 7 003,389 7 163,207 7,326,671 60% of Budget State Patrol Fire 3,000 3,068 3 138 3,210 3,283 3,358 Transfer Fire Investigation 3800 3,887 3,975 4,066 4,159 4254 Fire Protection 0 0 0 0 0 0 Fee FD #11 Plan Reviews 2,400 2A55 2,511 2,568 2,627 2,687 Training Services 5,000 5 114 5.231 5,350 5,472 5597 Photostat 500 511 523 535 547 560 Interest Income 245 251 257 263 269 275 GO Bond 338 875 294,600 294,975 0 0 0 Revenue REST Debt 72,563 75,938 74 150 72,225 75,300 73,050 Revenue Total Revenue 10,472227 13,367 252 13,547 246 13,448,004 13,674,826 13,900,613 Effective Tax Rate 1 603 1 000 1 000 1 000 1 000 0 998 In Option B of the RFA model fire income will increase $3 0 million dollars over the 2012 budgeted revenue and would be $3 6 million dollars more than Option A If both the property taxes collected and the benefit charge were shown as a combined levy rate the rate would be equivalent to $2 065 per $1 000 of taxable assessed value in 2013 climbing to $2 125 per $1 000 TAV in 2017 Page 63 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 91 Option B RFA Fire Operations Consolidated EMS Revenue, 2012 -2017 Description 2012 B `i ud ge`t et 2013 2014 2015 2016 2017 2012 Dept of Health - 1 726 1 765 1 806 1 847 1 889 1 932 Pre hos dal Grant Interest Income 300 307 314 321 328 336 Cit Contribution 425 712 0 0 0 0 0 Property Taxes - 1 308517 1 571 764 1 458,845 1 468,328 1 483511 1 497 841 EMS Levy Total Revenue 1,735,755 1,573,836 1,460,965 1,470,496 1 x185229 1,500,109 Tax Pate 0277 0250 0231 0231 0231 323U In Option B of the RFA model EMS revenue will be reduced by approximately $162 000 in 2013 despite the EMS levy rate increase due to the discontinuation of Union Gap s subsidy to its fire department Option 8 RFA Summary of Operations Expenditures Revenue and expenditure projections for 2012 through 2017 for RFA Option B are provided in Figure 92 Figure 92 Option B RFA Financial Summary Fire, 2012 - 2017 Description 2012 2013 2014 2015 2016 2017 Budget Revenue 10 ,472 227 13,345226 13 524 717 13A24,962 13 551 257 13,876,506 Expenditures Salaries 7 372 539 7 556553 7 745 774 7 939,419 8 137 904 8541 352 Benefits &Taxes 1574995 2572544 2,128,148 2,185561 2 244 510 2,306537 Supplies &Expense 657580 672,893 688248 703,954 720518 736,449 InterfundTransfers 208925 213593 218569 223557 228558 233,876 Capital 15 500 15542 15 592 16551 16 ,417 16,791 Debt 553549 588,952 540548 246,264 246589 246A64 Total Expenditures 10 582,388 11,120,577 11 336 981 11,314,606 11 594,197 11,880,970 Fire Fund Balance (210,161) 2,224,650 2,187,737 2,110,356 2 ,057 ,060 1,995,536 Option B funding of an RFA would result in positive cash flow of $2 million each year through 2017 The excess funding would allow resources for increasing the capital fund Page 64 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 93 Option B RFA Financial Summary EMS, 2012 — 2017 Description 2012 2013 2014 2015 2016 2017 Budget Revenue 1,735,755 1,573,836 1A60,965 1,470,496 1,485,229 1,500,109 Expenditures Salaries 1,118,946 1,146,920 1,175593 1204,982 1235,107 1265,985 Benefits &Taxes 352,012 377,737 387,181 396,860 406,782 416,951 Supplies &Expense 129,430 132,384 135,405 138,495 141,655 144,888 I nterfund Transfers 122513 125516 128,482 131,414 134,413 137480 Debt 0 0 0 0 0 0 Total Expenditures 1,723201 1,782,656 1,826,660 1,871,751 1,917,957 1,965,304 EMS Fund Balance 12,555 (208,820) (365,695) (401,255) (432,728) (465,194) The summary for EMS operations shows that a declining cash balance is generated for each year 2013 through 2017 The significant increase in EMS underfunding for the RFA is that the City of Union Gap is no longer subsidizing EMS operations If Option B is selected the new RFA will generate a cumulative positive cash flow of $13 6 million Both scenarios would have an accumulative negative cash flow of $1 4 million for EMS operation through 2017 RFA Financial Conclusion The creation of an RFA including Yakima FD Union Gap FD Distnct #10 and District #11 will be operating with a significant funding deficit under Option A In Option B positive revenues will provide necessary funding to cover the shortfall in EMS operations fund the capital reserve and provide for in kind services currently paid by the cities Any changes to the assumptions made for this report current service levels or new revenues must be made carefully to avoid inadvertently impacting the fiscal viability of an RFA Summary The following are the fiscal status projections for each of the participating departments/districts implementing the revenue (all sources) and expense (all services) assumptions contained in this report The Yakima Fire Department provides service in an urban setting for its citizens and provides contracted services to the citizens of Yakima County Fire District #10 Page 65 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 94 Status Quo Yakima Annual Balance — All Sources /All Services Description 2012 2013 2014' 2015 2016 2017 b udget All Revenue 10 767 769 11 248 132 11 594 513 11 768 529 12 153 721 12,550,681 All Expense 10 771 231 11 295 170 11 585 486 11 798 144 12 219 D92 12,653 745 Balance (3,463) — (47,039) 9,127 (29,515) (65,370) (103,064) *Increased EMS levy funds begin Figure 95 Yakima Revenue/Expense Projection 16.0 Millions 14.0 10.0 • • • • • • 6A • 4A • • ■AII Revenue • • 2A —e—All Expenses _ 101 OA • • • • 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 For Yakima expenses exceed revenue with a widening gap until the EMS levy increase is implemented in 2014 when revenue covers expenses The gap then begins widening again with an expanding deficit through 2017 Calculating the average growth of expense and revenue from 2012 through 2017 and projecting that average out to 2022 the lines eventually converge However this assumes no additional capital expenditures and no additional budget reductions Yakima Fire Department IS projected to be in a deficit under its current operating model Yakima County Fire Distnct #10 currently contracts with the Yakima Fire Department for fire and emergency medical services for its citizens Figure 96 Status Quo District #10 Annual Balance — All Sources /All Services Description 2012 2013 2014' 2015 2016 2017 Gadget All Revenue 63,545 64119 62227 62,829 63,460 64115 All Expense 74087 75283 77)317 78792 80,608 82465 Balance I (10,542) (11 164) (14 790) (15,963) (17 148) (18,350) Increased EMS levy funds begin Page 66 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure97 Status Quo District #10 Revenue /Expense Projection 100,000 - 90,000 80,000 70,000 - 60,000 • • • • • • • • • • 40,000 • • • • • • • • • • 20 30,000 00 • • • • • • • • • • • • • • • • • 20 j0 $00 All Revenue 10,000 - AII F x p ens es 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 For District #10 expenses far exceed revenue with a widening gap that significantly increases even after the full implementation of the EMS levy in 2014 The revenues are insufficient to meet projected expenses and are also insufficient to operate a fire department independently The contract with Yakima Fire Department is necessary for adequate fire protection for the residents of the district and a permanent solution IS needed This projection assumes no capital expenditures and no additional revenue Yakima County Fire District #10 Is projected to continue to be in a senous deficit under its current operating model Union Gap Fire Department provides service in a suburban setting for its citizens and provides contracted services to the citizens of Yakima County Fire District #11 Further the city provides a fiscal subsidy to the fire department to augment the emergency medical services costs Figure 98 Status Quo Union Gap Annual Balance -All Sources /All Services Description 2012 2013 2014* 2015 2016 2017 Oudg All Revenue 1 361 999 1 449 110 1 452,353 1,502 150 1 553,547 1 606,594 All Expenses 1 361 999 1 449 110 1452,353 1502 150 1 553,547 1 606,594 Balance 0 0 0 0 0 *Increased EMS levy funds begin Page 67 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure99 Status Quo Union Gap Revenue/Expense Projection 2,500,000 2,000,000 - 1,500,000 • 1 . 1,000,000 i Net Revenue 500,000 - - All Expenses 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 For Union Gap revenue in this scenario is equal to the projected expenditures since the city subsidizes the fire department to span the shortfall This subsidy ranges from 000 in 2012 to $485 000 in 2017 This graph assumes no capital expenditures and no additional revenue Union Gap Fire Department is projected to be in a stable financial situation under its current operating model as long as the city continues to subsidize the annual gap for its fire department Yakima County Fire District #11 currently contracts with the Union Gap Fire Department for fire and emergency medical services for its citizens Figure 100 Status Quo District #11 Annual Balance — All Sources /All Services Description 2012 2013 2014' 2015 2016 2017 Ruth; et Total Revenue 44,664 45 110 46,605 47,043 47,513 48,009 Total Expense 55,275 56,548 57,850 59,182 60,545 61,940 Balance (10,611) (11 438) (11 245) (12 139) (13,032) (13,931) *Increased EMS levy funds begin "" " "" " "" "'" Page 68 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 101 District #11 Revenue/Expense Projection 80,000 - 70,000 - 60,000 50,000 - , , 40,000 1111111111 30,000 1111111111 10,000 111111 ■All Revenue 10,000 —s—All Expenses ' 0 • • • 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 For District #11 expenses far exceed revenue with a widening gap that significantly increases even after the full implementation of the EMS levy in 2014 The revenues are insufficient to meet projected expenses and are also insufficient to operate a fire department independently The contract with Union Gap Fire Department is necessary for adequate fire protection for the residents of the district and a permanent solution is needed This projection assumes no capital expenditures and no additional revenue Yakima County Fire District #11 is projected to continue to be in a senous deficit under its current operating model There are two variations to the Regional Fire Authority being considered one using the standard property tax revenues as its primary revenue source (Option A) and the other being a combination of a lower property tax rate and benefit charge (Option 6) In both options it is assumed that all four agencies form a Planning Committee whose responsibility it is to establish an RFA plan providing for the governance design financing and development of fire protection and emergency services pursuant to RCW 52 26 The funding mechanism is the variable between the two options Under Option A the funding mechanism is a property tax with a statutory limit of $1 501$1 000 of assessed valuation plus the shared revenue from the existing EMS levy for the county The below chart reflects all revenues and all expenses of the four agencies combined Page 69 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 102 Option A RFA with Regular Property Tax — All Agencies Description 2012 2013 2014 2015 2016 2017 Rudget Total Revenue"` 12207,982 11,390 244 11,318,747 11,093,310 11206,829 11,316,132 Total Ex.enditures 12,405,589 12,903233 13 163,641 13 186 357 13,512 154 13 846274 Balance (197 607) (1,512,989) (1 844 894) (2 ,093,045) (2,305 325) (2,530 142) Increased EMS levy funds begin **$1 50/$1 000 AV plus EMS levy revenue Figure 103 Option A RFA Revenue /Expense - Maximum Property Tax 14 Mdlrons 12 - 18 1111111111 8 6 4 1=1=1=1=1=1=1=1=1=1= 2 0 i 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Property Tax @ $1 50/$1,000AV + EMS levy ■G■Expe nditures The combined maximum property tax revenue and the EMS levy revenue from all four agencies would not meet the projected expenses required to support an RFA In Option A The combined revenues fail to meet the projected revenues in the short term and continue to fall behind over the long term Frequent property tax lid lifts would be required to keep the gap from widening but would still be inadequate to meet the needs of the RFA without additional augmentations such as bonded debt for capital facilities and equipment or increasing the EMS levy rate over the current rate charged by the county Under Option B the funding mechanism Is a combination of a lower property tax and a benefit service charge (benefit charge) RCW 52 26 180 270 authorizes a regional fire authority to Page 70 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington impose a benefit charge Cities and towns do not have benefit charge authority (except when included as part of an RFA) A benefit charge is a service fee and not a tax The benefit charge applies to improvements to real property and personal property and professional assistance is typically required to establish the formula and basis for assessing the charge A benefit charge must be approved by a 60 percent vote If approved by the voters a benefit charge can constitute no more than 60 percent of the operating budget The approval of a benefit charge also reduces the maximum tax levy from $1 50 to $1 00 but does not affect the EMS tax levy rate Fig ure 104 Option 8 RFA with Benefit Charg e — Alt Agencies D escription 2012 2013 2014 2015 2016 2017 Budget Total Revenue' 12207,982 14,941,088 15 008 211 14,918,500 15,160,055 15,400,722 Total Ex. en diture s 12,405,589 12,903,233 13 163 041 13 186,357 13,512 154 13 846 274 Balance 197 607 2,037 855 1 844,570 1 732 143 1 647 901 1,554 •$1 001$1 000 plus EMS Levy revenue plus maximum Benefit Charge 70 Snure Seminars Fire Service Consolxlaboru Brian K Snure presenter Snure Laav Office PSC 612 S 227 St Des Moines WA 98198 -6836 Page 71 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Figure 105 Option B RFA Revenue/Expense— Maximum Benefit Charge 16 Nikons 14 12 � �;.�_ 10 ■■ 6 4 1111111111 2 0 I II. ■I -I-1 ■11 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Benefit Charge @ 60% Property Tax @ $1 00/$1,000AV + EMS Levy - Expenditures The combination of the lower property tax revenue the EMS levy revenue and the maximum benefit charge from all four agencies would exceed the revenue necessary to meet the projected expenses required to support an RFA in Option B The property tax revenue and the EMS levy revenue would have to shoulder the burden of covering capital facilities and equipment expenses as the benefit charge is not allowed to cover these expenses The benefit charge can be adjusted up or down to meet the projected expenses from year to year as long as the benefit charge formula included this scalable factor as part of the RFA service plan and did not exceed 60 percent of the operating budget The scalable nature of the benefit charge allows the charge to be established at the rate required to meet anticipated expenses In in this case the rate could be set at 50 percent and meet or exceed the projected expenses through 2017 Page 72 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Appendix Survey of Current Conditions This section of the report will provide an overview of each organization in its current independent status This will provide a current conditions review of the organizational infrastructure service delivery and capital assets available to each agency as they are operating today Notably Yakima County Fire District #10 and Yakima County Fire District #11 do not have many of these elements since they currently contract for services from Union Gap and Yakima Survey Table 1 Organizational Governance Survey Union Gap District N11 Yakima District .4'10 Components 1 Responsibilities & Lines of Authority Strong Mayor Council Manager and City Council Board of Fire Board of Fire A Governing body (7 including Commissioners (3) form of Commissioners (3) mayor) government RockyWillette Carl Cyr i] head of Mayor Chairman of the Mayor (elected by Chairman of the governing body Board of Fire the council) Board of Fire Commissioners Commissioners u] key employee of Mayor None City Manager None governing body B Elected official Yes Yes— RCW52 Yes —by Yes —RCW52 authority defined ordinance C Fire chief position Chris Jensen None Dave Willson None i) hired by contract No Yes No sunset — termination at -will u] term of contract N/A separation package if terminated without cause D Fire chief /authority Yes— Municipal Yes— Municipal defined Code code E Policy and administrative roles Yes Yes defined _ 2 Attributes of Successful Organizations A Legal counsel Yes Glen Warren local Yes maintained attorney i) consultation Yes Yes Yes available Yes — occasionally u] labor counsel Yes No contracts out for No labor issues 3 Organizational Structure A Structure type I Municipal Fire I Fire District I Municipal Fire I Fire District Department Department Page 73 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Union Gap District #11 Yakima District #10 Components Yes— Union for B Employment Yes Union Nit — no BC and below 2 No — no agreements emplo gees Deputy Chiefs in employees fire mqmt union 4 Chain of Command A Span of control Yes fJ;:. Yes N/A B Hiring /Firing No — recommend No — recommend authority to Mayor to City Manager 5 Formation and History A Organization 1937 1960 1889 formed B History No Yes maintained it Individual or N/A Yes grrup responsible 6 Genera! Description of Agency A At =tend; t;pe Munici Fire Fire District Municipal Fire Fire District Department Department B r,rea square_ UGFD -5 251 plus 09for rmles YFD#11 -366 366 YFD #10 09 Total area -936 68 West 107 West Washington 401 No Front C Headquarters Ahtanum Rd (Broadway Fire Street (Station 91) N/A (Station 85) District Headquarters) D Fire stations 1 +1 inactive from 1 5 District #11 House behind headquarters for Maintenance gym and locker inactive station room and garage with call-back E Other facilities across street for None apparatus stored None air compressor there training and storage repair facility (co located and maintenance with active station) facility International 90's version Tech Rescue Truck (stored at YFD) car hauler trailer F Emergency (carries trench F Emergency See below rescue See below None equipment) port o potty on a trailer partnership on a rehab unit with YFD Station 95 — regional assets i) engine 3 5 Page 74 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Surrey Union Gap District #11 Yakima District #10 Components u) engine 0— use of the reserve three no ladder truck 0 1 ftdlered aenalj Reserve ladder 0 1 truck iv) ambulance (first response aid 1 1 unit) v) ambulance 0 0 reserve Brush engine (type 1 2 6) vi) command 2 1 +reserve vu] boat 1 (outboard powered sled) G WSRB rating 4 i) date of most 2005 Early 1955 recent rating u] fire 168 deficiency department 2423 Total points for deficiency points Deficiency Points personnel 700 total FD H Total fire 10 career 5 department secretary 15 personnel approved 87 uniformed and volunteers (4 civilian currently vacant) i) administrative and support 1 5 5 personnel, full time u) administrative and support 0 0 personnel volunteer ui) operational 79 personnel, full time iv) operational personnel 15 0 volunteer _ 7 Demographics A Populititin 221121 742 ] 91,630 Page 75 Regional Fire Authonty Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Union Gap District Nil Yakima District k10 Components Vacant Develop Sub 16% Land 20 3% AgricuRure 19 8% Residential 52% u] percent Residential25 9% Business 6% urban /suburban /rur CBD GC and RD al Industrial 12 9% 11% Commercial Ind / &Airport 12 9% Support 15% Pub Fac 8 1% B Total residential 2297 See above units, 2010 C Businesses 650 See above 2010 8 Alarms A Fire 98 383 i) value of property exposed to $1 192 750 $208 607 555 00 fire 2010 u] value of property lost to fire $200 100 $13,980,922 00 2010 B Rupture or 1 7 explosion C EMS /rescue 713 7 569 D Hazardous 15 125 condition E Service call 36 489 F Good intent call 129 846 G False call 72 581 H Severe weather 0 2 I Other 1 7 J Total 1065 10p09 . .�..,,w+.. a....,e..m.m.a P age 76 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 2 Fiscal Management Surrey Components Union Gap District #11 Yakima District 1 Finance Overview A Assessed property value $550,326,067 $50 733 198 $5 599,278,437 $67 913,846 FY 2012 Fire Operations Fire Operations B Revised 2012 general = $838287 + = $9 133,653 operating fund budget fire EMS= $44,664 EMS+ $74,087 department $523 712 total = $1 1 489 $1 361 999 Tott al = $10,333,141 Fire & EMS Fire operations operations are are supplemented supplemented by city general by city general fund revenue fund revenue The total The total C General fund property amount amount $63,205 tax city levy FY2012 transferred to $44 664 transferred to cover fire cover fire operations was operations was $838287 and $9D79153 the amount to EMS property EMS was tax revenue was $523712 $1,194,000 Effective Fire Effective Fire Levy rate (city contribution rate (city contribution to contribution to fire department Fire fire department budget 2008 = 0 981 budget calculated as a 2009 = 0 924 calculated as a levy rate 2010 = 0 851 levy rate] 2008 = 1 014 2008 1 558 20 = 0 931 2008 = 1 796 2009 = 1 050 0 levy rate (FY 2008 2009 =1 395 2012 = 0 880 2009 = 1 705 2010 = 1 003 EMS 2010 through 2012] 2010 =1 294 = 1 627 2011 = NIA 2011 =1 478 2008 = 0 165 2011 1 = 1 627 2012 = 0 932 2012 =1 523 2009 = 0 165 2012 = 1 621 EMS levy rates 2010 = 0 135 EMS levy rates 2008 =0 835 2011 =0 0 2008 = 0 228 2012 =0 0 2009 = 0 205 2009 =0 926 2010 =0204 2010 =0 895 2011 2011 = 0 214 011 =1 073 2012 =0 952 2012 =0214 Budgeted 11) general fund levy $1 298,320 percentage collected FY Received 99 72% 2011 $1 288 439 Percent 99 2% Limited GO for D Bonds fire department None None training center None matures in 2014 1) levy rate hl;;a, $0 05 per NIA thousand y_ .i— w+na..�.,.,..m.m.a 7 7 1�' Page � Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Smvey Components Limon Gap District #11 Yakima District #10 E Other tax levy public Valley station safety None N/A funded with N/A BEET funds i) levy rate N/A N/A N/A N/A 2 Budgetary Controls A Designated fiscal year a i) budget cycle Calendar Calendar Calendar Calendar Deputy Director B Budget officer City District Accounting & t Treasurer /Mayor Secretary Budgeting Secretary Process begins in June utilizing approved FTEs to generate base wages Dept sends in estimates for year end expenditures Finance prepares an Process begins adopted base in September budget with Process begins with the district recommended in August secretary numbers which Finance preparing a is sent to the provides 2 years preliminary depts for review of history plus budget and revision current actual (generally is New budgets data YTD and equivalent to are to be C Budget development current year previous year) received by end process budget By fund In the October ofJuly August and account meeting the meetings are number Once budget is scheduled to submitted discussed review the Finance Dept revised as budget data assembled total necessary and After these preliminary adopted The meetings depts budget for adopted budget are sent a target review is submitted to reduction list the county in After reductions November budget presented to council for review and approval Budget is approved first meeting in December The adoption is the second meeting in December Page 78 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Components Limon Gap District X11 Yakima D 'strict k10 The council budget Look at committee preliminary meets to review budget make policy and i) role of electeds revisions reserve levels approve for the budget approved by The council 12131 ultimately approves the budget Fire chief Fire chief works working with closely in u) role of administration secretary scrubbing the creates numbers to department arrive at final budget budget Deputy fire in) role of management Limited chiefs provide input to budget process Staff proposals to the Chief Staff functions iv) role of staff based on provide input program area of responsibility Nothing specific Nothing specific for fire for fire v) role of community department but department but there is a public there is a public hearing on total hearing on total budget budget D Budget adoption process City council approves the City council budget during i] budget approval approves budget the first meeting by the end of in December December and adopts the budget at the second meeting Revenue is Revenue is included in the included in the u] funding approval budget approval budget approval process and process and approved at the approved at the same meeting same meeting E Financial control officer Fire Chief Fire Chief On line access On line access The fire The fire i) financial report department department generates own generates own reports reports Page 79 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Components Union Gap District #11 Yakima District #10 City Finance department reviews reports City Finance and exceptions department to budget are reviews reviewed with department Mayor and reports and overages are exceptions to discussed with budget are u] financial review department and analyzed a resolution is Corrective made If no actions are resolution is discussed and obtainable a implemented as budget necessary The amendment department is ordinance is assigned an required to be accountant for authorized for support overage State auditor's office does an State auditor's annual audit office does an in) auditor Last audit for annual audit 2009 In 2012 Last audit for both 2010 and 2010 2011 will be audited F Basis of accounting Cash basis Modified Accrual G Purchasing Written policy No written maintained by purchasing policy POs are not issued The There is a mayor must sign requisition process to all expenditures i) purchasing policy over $500 The generate fire chief as purchase order authority to The deputy chief purchase must sign all anything in his req s over budget $2,500 fire chief must sign over $7,500 vi) central No No supplies/logistics vu) point No No agreements /ventures w..w+..a....,..m.ma 80 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Sunrey Components Limon Gap District X11 Yakima District #10 Utilize state contracts piggy N use Mate back on other viii) JPAs department s contracts purchases for major equipment ix) bidding State bidding State bidding guidelines guidelines x) leases None None 3 Budget i A Seivice level defined Budget Only Yes (SOC) B Operating budgetary $1316556 funds (2012) i) organized by program Yes Yes or category u) sub accounts Yes Yes Projected Retired Medical C Reserve funds None balance at and pension None 112!31111 is fund $19,189 $774,34872 Capital fund 113 EMS fund = — projected $64 511 D Revenue funds 12!31111 ending None Capital fund = None balance $253 164 $253,196 E Enterprise funds N/A N/A N/A N/A F Adopted budget FD Fire = $838,287 Fire = income accounts 2012 EMS= $44464 $9133,653 $63,545 actual amounts $523712 EMS= $1,196,026 G Revised budget FD Fire = $838,287 Fire = expense accounts 2012 EMS= $25,475 $9133,653 $74,087 General Fund $523 712 EMS4 $1 199,489 Fire = $636 110 Secretary & Fire = Secretary & i)personnel EMS = Commissioner $6,694 698 Commissioner 5502,212 $4 ,900 EMS- $6768 $771525 Amount paid to $58,874 paid to u) contractual No contractual Union Gap not No contractual Yakima for fire obligations shown in budget obligations service m) commodities Fire = $59 117 $9575 Fire = $439503 $3,025 EMS= $32,930 *•...,.,,,,....—..«,.,.,a Page 81 Regional Fire Authority Fiscal Analysis 'fakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Components Union Gap District #11 Yakima District #10 $10 ,000 is included in the Capital not in fire budget for the budget but machinery & recorded in iv) capdal outlay equi $5,000 capital fund N/A $250,000 is number332 included in fund 2012 expense 113 for the amount in fund purchase of an 332 = $126,500 engine H Municipal overhead EMS $100,000 i) reserve fund to dispatch contributions N/A N/A Fire $75,000 to N/A capital fund u] fleet rental charges 0 N/A N/A N/A w] fleet maintenance $7 300 $0 $65,000 Si charges iv) motor fuel charges Fire = $6 ,000 $0 $84 000 $0 Ems $5,000 Total insurance v) property /casualty recorded in Fire $2,500 Fire = $117 125 $1 300 insurance Operations EMS= $22,813 budget $351J00 Budget includes $155 746 for benefit and Fire = vi) medical and dental taxes No N/A $1 058,680 N/A insurance segregation EMS= provided by $125542 expense category vii) workers $27327 N/A Fire = $1351833 N/A compensation EMS= $16,415 The city doesn't establish a mod rate for worker's viii) workers Fire =08556 N/A comp Annual N/A compensation mod rate Admin =0 1892 amount based on open claims and estimated new claims ix) employee pension plan See above N/A Fire = $323 343 N/A EMS= $37,064 x) city administrative No charges to N/A No charges to N/A overhead fire department fire department Page 82 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington SuroevComponents Union Gap District #11 Yakima District #10 4 Debt ■ GO debt is not charged to the fire department budget but to the Finance budget In 2012 the total department expense for A Bonded debt GO Debt for fire debt would have station remodel increased by 5293875 The cost for the Valley station is also not charged to the fire department 2012 cost would have been $71 635 Two engines purchased on lease and charged to Fire department budget ($69,959) The In process of fire department purchasing a fire has also truck $200,000 purchased a B Capital lease down with lease ladder truck on to begin lease However payments in the expense for 2013 this purchase is charged to the Finance department fund number 281 The 2012 budget amount is $72,563 None The LEOFF I pension and medical medical unfunded exposure are liability is included at the $24 295,000 C Unfunded liability state level Any Ongoing costs collection of for this expense unfunded liability are charged to is by adjusting fund number annual 612 premiums Page 83 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Components Limon Gap District X11 Yakima District X10 The LEOFF fund is controlled by the staff any unfunded liability is recovered The LEOFF fund through is controlled by increased the staff any annual unfunded liability premiums i] pension fund is recovered Employees through working prior to increased 1970 pre annual LEOFF pension premiums unfunded liability is $9289,000 Ongoing costs for this expense are charged to fund number 612 6 opens claims u] workers compensation No open claims with a projected claims future payout of $467,000 The city rate for A Tax levy $0 8801$1000 the 2012 budget 0 932 is 3 02 per thousand The city legal maximum mill rate is 3 60 with The city legal 0 50 designated 0 limitations maximum is Maximum for the library Maximum 3 10 allowed 1 500 fund Without allowed 1 500 the library fund mill rate the city's ceiling mill rate is 3 10 Contracted fire Contracted fire B Service contracts None service with None service with Union Gap Yakima C Grants 0 recent awards Pre hospital None None None trauma grant u] county grants None None None None m] outstanding None None None None applications D Fundraising i] Foundation None None None None u] Volunteer Association None None None None Page U4 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Components Union Gap District #11 Yakima D !strict #10 E Fees for service u] billing for fire response Yes No No No w] inspection fee To be started N No No 1/01112 iv) hazardous materials Yes Nit No No v) recovery outside of city No No No No vi] airport /portfee(s) No No No No vii) event stand by Yes No No No charges *..—...,.,..«,.,.," Page 85 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 3 Organizational Management Sunray Components Union Gap District#11 Yakima District #10 1 Critical Issues A Critical issues are identified Finding a i) first critical issue Staffing provider for Funding service Timely u) second critical issue Equipment response Personnel especially (staffing) access issues Community involvement — Maintenance of w third critical issue Facilities getting a board apparatus and member 900 p {acilities population estimate 2 Challenges of the Future A Challenges are identified Connecting with the community — language barriers — Generation of first challenge predominantly the workforce Spanish (entitlement) speaking community and lumted staff speaks Spanish Staffing and Deployment (conservative u) second challenge model —auto aid community has been pulled vaonservat from Yakima ultraconservative council) All apparatus and major Roll of the fire in) third challenge qu ipment were service in the purchased at future the same time 1999 3 Security A Building security Yes Yes B Office security Yes Yes C Computer security Yes Yes D Vehicle security Yes Yes Tracked and E Capital inventory listed in ERS maintained but not tagged Yes with inventory taps Page 86 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Components Union Gap District #11 Yakima District #10 i] asset security system No Yes used u) inventory interval Yes Annual 4 Reportmq and Records ■ A Records kept by Yes Yes computer i] type of platform Contracted out PC u) operating system Windows Vista Windows B Required records maintained i) incident reports ERS Yes ERS u) patient care reports ERS ERS Electronic and hard copy— Yes — Training m] exposure records secretary Captain maintains in a secured file iv) SCBAtestinq Yes Yes v) hose Yes Yes vi) ladder Yes — hired out Yes vii) pump Yes — hired out Yes vin) breathing air Yes Yes Yes — ix) vehicles maintained by Yes crew x) qas monitors Yes Yes Page 87 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 4 Planning for Fire and Emergency Medical Protection Survey Components Union Gap District#11 Yakima District #10 1 Organizing for the • Planning Process A Adopted planning process No No B Long range planning No No i) master planning No No Being written u] strategic planning currently by No chief u] capital improvement Not for facilities planning No but for apparatus No — being m] financial planning added to No strategic plan C Operational planning Yes i] response planning Run Cards Yes u] regional incident Yes No command no mutual aid planning Yes Yes iv) disaster planning Yes Yes D Tactical planning i] pre fire planning Yes Yes u] specific hazard plans Yes Yes m] hazardous materials Yes Yes planning .u..w+..a.....,..«.ma Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 5 Human Resources Management Survey Components Union Gap District X11 Yakima District #10 1 Policies, Rules, Regulations, and Operational Guidelines Fire Chief is HR director for fire Director of A Human resource manager dept sends Human information to Resources — Mayor's Colleen Chapin _ secretary 2 Compensation, Point System, and Benefits _ A Uniformed employee Current CBA Salary amount s compensation FT annual expires 12/31/11 longevity o e includes paY i) fire chief $85,691 $127544 u] deputy chief N/A $115 178 administration m] deputy chief technical N/A $90 707 service 3 BCswith iv) battalion chief N/A average wage of $107 493 v) training captain N/A $91 870 nonexempt vi] deputy fire marshal N/A $102524 nonexempt vu) emergency management coordinator N/A N/A exempt vin) field training officer N/A N/A captain — nonexempt ix) EMS coordinator N/A N/A nonexempt 3 captains with 6 captains with x) captain average wage of average wage $67,182 of $95,005 xi) technical services N/A $74 257 coordinator lieutenant xu) EMS field coordinator N/A N/A xiii) fire lieutenant/fire N/A N/A investigator xiv) fire plans N/A N/A examiner /inspector 12 LTswith xv) lieutenant N/A average wage of $83,382 xvi) engineer N/A N/A xvu) firefighter /paramedic N/A N/A xvw) public information N/A N/A specialist — exempt 6 firefighters 56 firefighters ixx) firefighter 11 with an average with an average wage of $53,360 wage of $72,839 Page 89 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Components Union Gap District #11 Yakima District #10 xx] firefighter I entry level N/A N/A B Additional compensation i) EMT premium pay N/A N/A u] paramedic pay N/A N/A m] clothing allowance Provided for in N/A Budget Annually Effective Monthly January 1 2007 payment to monthly base wage is payment to base increased by wage is following increased by percent following 4 —8 years percent 2 0% iv) longevity pay 6 — 10 ° years 9 —13 ° years 15/0 35/0 11 —15 years 14 —19 years 2 5% 5 5% 16 —20 years 20 —23 years 3 5% 7 0% 21 -25 years 24 2590 4 5% 26 years and 26 years and over 5 5% over 10 0% v) other specialty pay N/A N/A C Non uniformed employee compensation, FT annual i) administrative support $46,525 $49,024 u] clerical N/A $56,888 w] management intern N/A N/A D Career employee benefits No FICA but No FICA but city pays into i] social security city pays into deferred comp deferred comp program Yes program paid check on this Self insured The city contributes various amounts depending on Washington the job u] worker's compensation Builders classification of Association the employee and the employee contributes $0 054 per hour worked Page 90 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Components Union Gap District #11 Yakima District #10 LEOFF 1 & 11 office on PERS LEOFF II LEOFF program firefighter pay is funded by the 8 46% and the department no city pays 5 24% contribution by per pay period employee ni) pension The fire PERS is funded secretary is by department PERS I with a employee pays contribution 6 0% and the from employee city725% PERS II is5% and PERS III is 5% ICMA deferred comp Partially funded by city Washington 4% In 2011 the iy] deferred compensation State deferred deferred comp comp program rate was 1% City pays 6 2% (4% in 2012) Firefighter administration is 3% Page 91 Regional Fire Authority Fiscal Analysis '(skims Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Components Union Gap District #11 Yakima Dstrict #10 City self insured for medical insurance 2012 rates LEOFF I Total monthly cost for employee $74871 paid by Association of city Family total Washington cost is Cities $1 444 41 with Employee is employee 100% paid paying $140 $651 95 and management dependent are group payment is $347 90% paid with LEOFFIIIII the employee Total monthly covering the cost for v) medical insurance other 10% employee Add tional $576 50 paid by 639 45 for city Family total spouse 292 10 cost is for one child $1 272 21 with two or more employee $259 15 paying $140 $75 per person Management per month is group payment paid for post- is $347 86 employment PERS medical Total monthly cost for employee $576 50 paid by city Family total cost is $1 272 21 with employee paying $154 Total monthly $74 10 per cost for month including employee vi) dental insurance dependents including all 100 % paid dependents is $91 96 paid by city AFLAC is short AFLAC is short term that the term that the vu) short and long term firefighter fighter firefighter fighter disability insurance can purchase can purchase Voluntary no city Voluntary no contribution city contribution Page 92 Regional Fire Authority Fiscal Analysis '(skims Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Components Union Gap District #11 Yakima District #10 $1 90 per month viii) life insurance per employee $100,000 check for a policy to see if correct valued at $5,000 $15 90 per Included with ix) vision insurance month including medical dependent coverage 100% paid x) survivor income benefit Voluntary Voluntary xi) additional life insurance N/A N/A $6 per point 10 reserves split Shift= 8 points budgeted E Volunteer compensation drill= 2 points dollars ($5800) response to call based on 2 points activities 0 Pension City pays $60 None per year $30 per person 11] Medical benefits per years for None medical 3 Counseling Services A Critical incident stress Yes Yes debriefing EAP through Central Washington B Employee assistance Yes comprehensive program mental health 3 free visits per incidence per household 4 The Application and Recruitment Process UGFD handles B Application process recommends to HR and FD Mayor iv) background check UGFD PST v] knowledge testing UGFD HR and FD vi] interview UGFD HR and FD 5 Testing, Measuring and Promotion Process A Civil Service Yes Yes Not tot vii] medical exam required Yes p rornotil viii] psychological exam Nu Entry level only required with polygraph 6 Health and Safety No — CBA requires Medical provision of bi i] periodic medical exam surveillance per annual NFPA physicals after 40 &Hax Mat personnel (12) Page 93 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washuulten Survey Table 6 Informational and Technology Services Survey Components Union Gap District #11 Yakima District #10 Yakima B IS /IT staff Networking and Yakima IT dept 5K 1 (half IT/half i] administration 0 Communication Director u) staff 0 6 D CIP (Capital improvement No No plan) 2 RMS (Records Management System) A RMS modules (version) ERS Yes i) accounting — Bias N receivables/billing u] firereports — NFIRS ERS ER= compliant ui) EMS reports ERS ERS iv) training ERS ERS v) vehicle maintenance ERS No vi) hose testing ERS Yes vu) ladder testinq ERS Yes vin) hydrant records ERS Water Dept performs this ix) inventory ERS No x) personnel records Maintained at Yes Mayor's office xi) exposure records With Personnel Yes records xu) staffing ERS Yes xw] pre plans facility Maintained on plans computer but Yes outdated xi occupancy Yes perform but v] o YFD does not inspections iv) o YFD has access xv] fire investigation Fire Chief and 1 Yes captain xvi) public education Yes Yes activity men) hazardous materials Don't know No — hard copies win) mobile incident Yes Yes command YFD does not ixx) fire inspections Yes perform but YFD has access C Mapping — GIS Yakima County Yakima County GIS E CAD (Computer Aided Yes — Chief and Dispatch) Captain Office Yes as well as MDC Page 94 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Components Union Gap District #11 Yakima District #10 interface(s) with other RMS Yes Yes F MDC /MDT MDCs MDCs 0 emergency response spare E Rescue 1 units spar Rescue MDCs 85 u) command units No MDCs G AVL Yes Yes I] mutual and auto aid Yes Some do agencies 3 Equipment J� A Computers at stations Yes Yes i) printers Yes Yes u) Intranet No No vI) Internet access Yes Yes Iv) connection type Ethernet Ethernet v) firewalls Yes Yes vi) software Microsoft Office Microsoft Office B Cs Training B Laptop computers Yes 2 Ops Chief and Fire Chief Page 95 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 7 Organizational Staffing Survey Components Union Gap District #11 Yakima District #10 1 Administration and Other Support Staff • A Fire chief 1 1 B Deputy fire chief 0 1 Operation C Deputy fire chief Support 0 1 (:scant) D Captain training 1 1 E Deputy fire marshal 0 1 F Emergency management 0 0 coordinator 1 (position G Lieutenant field training 0 expires at end officer of year going back to the line) Acting Capt is 0 (training EMS H EMS coordinator coordinator but captain has is on shift additional duty) I Lieutenant technical 0 0 services coordinator 0 (shift J Fire lieutenant/fire 0 personnel with investigator cause & origin training) K Fire plans Fire Chief 0 examiner /inspector performs L Fire prevention specialist 0 0 M Public information 0 0 specialist, exempt N Mechanic 0 1 0 Public education 0 (company 0 delivered by specialist exempt request) P Administrative support 0 1 Q Clerical 5 1 R Management intern 0 0 S Total administrative & 2 5 8 support staff T Percent administrative & 21 7% 9 1% support to total 2 Emergency Seance Staff ■ A Battalion chief 0 3 B Captain 3 (see reorg ) 6 C EMS field coordinator 0 0 D Lieutenant 0 (see reorg) 12 E Engineer 0 0 F Firefighter paramedic 0 0 G Firefighter I and II 6 57 Page 96 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Components Union Gap District #11 Yakima District #10 H Total operational staff 9 79 I Fire department total 11 5 87 J Percent of operational 33 % officers to firefighters 28 75 /o 3 Use of Career and Volunteer Personnel A Career schedule 4f +9E 48/96 48 — increase sick leave and i) length of normal duty productivity period 48 have increased under this schedule u] FLSA period 24 day 24 day 53 02 hour ui) duty hours per week Kelly day per 50 46 cycle) iv) normal shift begins 0800 0800 Yes —19 v) callback requirements Yes minimum hire back B Operational career services i) fire suppression Yes Yes u) EMS /rescue first Yes Yes response m) EMS advanced life No No support iv) specialized rescue Yes Yes v) fire prevention Yes Yes inspections vi) emergency Yes No management vu) public education Yes Yes — request basis Yes — Technician — Tn-county vui) hazardous materials Yes— hazmat team response (level) Operations le including Benton Franklin Walla Walla counties D Volunteer services i) chaplain Ne 4 Page 97 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Components Union Gap District #11 Yakima District #10 Reserve program 9 — Called out on greater alarm incidents to run u) civilian administrative No rehab and air volunteer Now has a non profit account Some financial issues caused the program to be suspended ni) operational volunteers 15 0 4 Responsibilities and Activity Levels of Personnel A Special duties assigned by O bid No No n] duty assignment Yes No m) areas of personal Yes Yes interest B Committees and work groups i) EMS quality Yes No management v) chaplain No No no training Yes No iv) safety Yes Yes v) building development Yes Yes vi) standards Yes Yes �....r a.....e..m.m.a Page 9;:i Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 8 Emergency Management Survey Components Union Gap District #11 Yakima District #10 1 Fire based? A Responsible for I Shared I Union Gap I Yes I Yakima Emergency Management? provides provides 2 Resources A Internal personnel ICS positions resources elsewhere in N/A county B External personnel County resources County EM Emergency Management "" '" " "" "'" Page 99 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 9 Emergency Communications Suniey Components Union Gap District Hll Yakima District N10 1 Communications Provider A Emergency Dispatch Yakima Yakima Agency (SunCom) employees dispatch All of the upper ;All of the upper i] population served valley of Yakima valley of Yakima County County u] 9 1 1 PSAP— (public Yakima County Yakima County safety answering point) ui] surrounding bordering District5 District5 PSAPs Ellensburg /Kittitas Ellensburg /44ttitas Co Co iv) surrounding and All of upper All of upper Yakima Valley — mutual aid fire departments Yakima Valley enterprise fund Director reports to Director reports to Finance & Fire Finance &Fire B Organizational structure Chief but also Chief but also functions as IT is functions as IT is supervised by supervised by Finance Dept Fire Dept 12 dispatchers 9 12 dispatchers 9 C Authorized call takers 1 mid call takers 1 mid communications staffing manager and 1 manager and 1 division head, division head, O work schedule 12 hours 12 hours 3 (1 PD +1 Fire 3 (1 PD +1 Fire u) minimum staffing policy +1 swing +1 swing vi) state requirements for Yes Yes public safety dispatchers iv) union representation Yes Yes u...w+.. a....b..m.mq N yriP II Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 10 Service Delivery System Survey Components Union Gap District #11 Yakima District #10 1 Fire Stations A Total area protected 5 7 +3 66 from 25 1 + 9 from YF D #11 YFD#10 i) total area protected for N/A N/A EMS transport B Total number of fire 1 5 stations i) number of stations 1 5 staffed full time u) number of stations 0 0 staffed part time vi) number of unstaffed 0 0 stations C Average area protected 936 52 by each station D Response time goals No Yes adopted i) for fire emergencies No Yes u) for EMS emergencies No Yes vi) actual response times Yes through Yes documented ERS E Standard response Yes Yes protocols adopted i) by alarm type Yes — E 85 Yes (apparatus per alarm) u) by apparatus type Yes 3 Yes (persons per app) F Call back system Yes _ Yes 2 Emergency Apparatus _ A Availability for dispatch i) engine 3 5 u) ladder truck 0 1 swing staffed w /engine no rescue 1 1 iv) command 1 1 v) hazardous materials 0 — respond as Yes first responders vi) boat 0 Yes B Availability of reserves (response ready) Front Line i) engine Apparatus used as reserve ladder truck Yes — Contrail 1 with Yakima HO !Rescue No 0 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 11 Emergency Services Training Program Survey Components Union Gap District 811 Yakima District #10 1 Training Facilities and Resources Vent prop train Tower confined A Training facilities (tower on buildings s entry forced ce props pits) within the fire ry vehicle extrication Go to Yakima Yes burn room i] live fire prop Station 95 or and live fire North Bend prop u) fire and driving grounds In the Yes community B Classroom facilities Kitchen table Yes Page 102 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 12 Capital Improvement & Replacement Survey Components Union Gap District #11 Yakima District #10 1 Fire Stations /Structures A Flan maintained No fJ ?:. No i) penod of plan(from — to) NIA NIA n) funding mechanism N/A N/A B Construction or N/A N/A improvement plans 2010 N/A N/A 2011 N/A N/A 2012 N/A N/A 2013 N/A N/A 2014 N/A N/A 2015 N/A N/A 2016 N/A N/A 2017 N/A N/A 2018 N/A N/A 2019 N/A N/A 2020 N/A N/A 2 Apparatus _ A Plan maintained No Yes i) period of plan (from — to) u) funding mechanism No No Engines every 12 years for B Purchase or NSA front line 5 refurbishment schedule years additional for reserve 20 years for aerial 2010 adopted NIA. N;:A 2011, recommended NIA. N;A 2012, recommended NIA. NIA. 2013, recommended NIA. NIA. 2014, recommended NIA. NIA. 2015 recommended NIA. NIA. 2016, recommended NIA. NIA. 2017, recommended 2018, recommended 2019, recommended N/A N/A 2020, recommended N/A N/A 3 Support Equipment A Plan maintained No No i) period of plan (from — to) N/A N/A u) funding mechanism N/A N/A B Purchase planned for N/A N/A 4 Methods of Financing - A General revenue See below See below B Reserve fund(s) N/A NIA. C Revenue fund(s) N/A NIA. D General obligation bond N/A NIA. E Lease Purchase N/A NIA. Y..n+wpa.nnes laming Page 10:3 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Components Union Gap District #11 Yakima District #10 F Grants or •iftin. N/A N/A G S.ecial fees N/A N/A Page 104 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 13 Yakima Station 90 Address 1216 Race Street Not Pictured Survey Components Administrative Offices 1 Structure A Construction type Unknown B Date Unknown C Seismic protection /energy audits Unknown D Auxiliary power Unknown E Condition Unknown F Special considerations (ADA mixed Unknown gender appropriate storage exhaust removal, etc) 2 Square Footage Unknown 3 Facilities Available j Unknown A Exercise /workout Unknown B Kitchen /dormitory Unknown C Lockers /showers Unknown D Training /meetings Unknown E Washer /dryer Unknown 4 Protection Systems Unknown A Sprinkler system Unknown B Smoke detection Unknown C Security Unknown D Apparatus exhaust system Unknown Comments Thisfacilitywas not inspected by ESCI The station houses the reserve program apparatus and is not an emergency response facility The status of the reserve program is currently on hold and in doubt Page 105 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 14 Yakima Station 91 Address 401 North Front Street �rl r!!ews Su rvey Compon ents Administrative Offices 1 Structure a A Construction type Masonry B Date 1974 C Seismic protection /energy audits No D Auxiliary power Yes E Condition Good F Special considerations (ADA mixed gender appropriate storage exhaust See below removal, etc) 2 Square Footage 9,405 3 Facilities Available a� A Exercise /workout Yes B Kitchen /dormitory Yes C Lockers /showers Yes D Training /meetings Yes E Washer /dryer Yes 4 Protection Systems A Sprinkler system Partial B Smoke detection Yes C Security Adequate D Apparatus exhaust system Yes Page 106 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 15 Yakima Station 92 Address 7707 Tieton .111.1 au'16fu�+ , I t • II mum Survey Compon ents 1 Structure A Construction type Masonry B Date 1978 C Seismic protection /energy audits No D Auxiliary power Yes E Condition Good F Special considerations (ADA mixed Yes gender appropriate, storage, etc) 2 Square Footage 8, 3 Facilities Available A Exercise /workout Yes B Kitchen /dormitory Yes C Lockers /showers Yes D Training /meetings Yes E Washer /dryer Yes 4 Protection Systems A Sprinkler system Yes B Smoke detection Yes C Security Adequate D Apparatus exhaust system Yes •••nems."«.c.b.• Page 107 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 16 Yakima Station 93 Address 511 North 40 Avenue ?IRE rJ r. � 511 a • Survey Components 1 Structure A Construction type Wood Frame B Date 1996 C Seismic protection /energy audits No D Auxiliary power Yes E Condition Good F Special considerations (ADA mixed Yes gender appropriate, storage, etc) 2 Square Footage E111y1 3 Facilities Available A Exercise /workout Yes B Kitchen /dormitory Yes C Lockers /showers Yes D Traininq/meetinqs Yes E Washer /dryer Yes 4 Protection Systems A Sprinkler system Yes B Smoke detection Yes C Security Adequate D Apparatus exhaust system Yes •" rms. «..c."'" Page 108 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 17 Yakima Station 94 Address 2404 W Washington Avenue S irk - fa u laa I._i t Su rvey Components 1 Structure A Construction type Wood frame B Date Unknown C Seismic protection /energy audits No D Auxiliary power Yes E Condition Good F Special considerations (ADA mixed Yes gender appropriate, storage, etc) 2 Square Footage _' glgl 3 Facilities Available A Exercise /workout Yes B Kitchen /dormitory Yes C Lockers /showers Yes D Training /meetings Yes E Washer /dryer Yes 4 Protection Systems A Sprinkler system No B Smoke detection Yes C Security Adequate D Apparatus exhaust system Yes •"nems...c."'" Page 109 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 18 Yakima Station 95 Address 807 Knob Hill Blvd • • !!! •- r pir4. • Su rvey Components 1 Structure A Construction type Masonry B Date 1985 C Seismic protection /energy audits No D Auxiliary power Yes E Condition Good F Special considerations (ADA mixed Yes gender appropriate, storage, etc) 2 Square Footage 11.71; Ig 3 Facilities Available A Exercise /workout Yes B Kitchen /dormitory Yes C Lockers /showers Yes D Training /meetings Yes E Washer /dryer Yes 4 Protection Systems A Sprinkler system No B Smoke detection Yes C Security Appropriate D Apparatus exhaust system Yes ••-rms."«.c.b.• Page 110 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 19 Yakima Fire Training Center Address 807 East Knob Hill Blvd MI r �IYwY�YOn_TT[ 1 — rt-L IT 'N .r 71 N. V emelar Survey Compon eats 1 Structure A Construction type Construction block masonry B Date 1996 C Seismic protection /energy audits No D Auxiliary power N/A E Condition Good F Special considerations (ADA mixed N/A gender appropriate, storage, etc) 2 Square Footage • Not available 3 Facilities Available A Exercise /workout N/A B Kitchen /dormitory N/A C Lockers /showers N/A D Training /meetings At adjacent fire station 95 E Washer /dryer N/A 4 Protection Systems A Sprinkler system N/A B Smoke detection N/A C Security Appropriate D Apparatus exhaust system N/A Page 111 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 20 Yakima Fire Apparatus Maintenance Address 2200 Fruitvale Blvd — - i Su rvey Components 1 Structure a A Construction type Masonry B Date 1995 C Seismic protection /energy audits No D Auxiliary power No E Condition Good F Special considerations (ADA mixed No gender appropriate, storage, etc) 2 Square Footage Fire Dept portion 4)800 3 Facilities Available A Exercise /workout N/A B Kitchen /dormitory N/A C Lockers /showers N/A D Training /meetings N/A E Washer /dryer N/A 4 Protection Systems A Sprinkler system No B Smoke detection No C Security Adequate D Apparatus exhaust system No Page 112 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 21 Union Gap Station 85 Address 107 Ahtanum Road 11 In Q 9 IN; • nta, Survey Components Administrative Offices 1 Structure A Construction type Masonry B Date 1970 C Seismic protection /energy audits No D Auxiliary power unknown E Condition Fair F Special considerations (ADA mixed gender appropriate storage exhaust No removal, etc) 2 Square Footage 3 Facilities Available A Exercise /workout Yes B Kitchen /dormitory Yes C Lockers /showers Yes D Training /meetings Yes E Washer /dryer Yes 4 Protection Systems A Sprinkler system No B Smoke detection Yes C Security Adequate D Apparatus exhaust system No Page 113 Regional Fire Authority Fiscal Analysis Yakima Union Gap Yakima County Fire Districts #10 and #11 Washington Survey Table 22 Fire District N11 Station 86 Address 68 W Washington Avenue J. • .. l� A . I Su rvey Components 1 Structure a A Construction type Masonry B Date 1965 C Seismic protection /energy audits No D Auxiliary power Unknown E Condition Fair F Special considerations (ADA mixed No gender appropriate, storage, etc) 2 Square Footage 3,072 3 Facilities Available A Exercise /workout N/A B Kitchen /dormitory Yes C Lockers /showers N/A D Training /meetings Yes E Washer /dryer Unknown 4 Protection Systems A Sprinkler system No B Smoke detection Yes C Security Adequate D Apparatus exhaust system No Page 114 NIII ', c 1 Emergency Services Consulting 14404.4:04,4 • Corporate Offices Eastern Region Office National Capital Region Office 25200 SW Parkway Avenue, Suite 3 111 Kilson Drive, Suite 208 4025 Fair Ridge Drive Wilsonville, Oregon 97070 Mooresville, North Carolina 28117 Fairfax, Virginia 22033 800.757.3724 704.660.8027 703.273.0911 © Copyright 2012 Emergency Services Consulting International All Rights Reserved