CARES • Finance 101

WelcomePlease introduce yourself to others at your table

Put on a name tag

Complete the information on the sign-in sheet

Operational Guidelineso Meetings will not be conducive to the format of an open

forum or debate.

o Meetings are work sessions that allow for the free exchange of ideas.

CARES Chargeo Create a long-range plan to meet the community’s level

of service and protection expectations.

Sign-in Sheet

I Have a Question!

• Fill Out Form

• Call:

• 636-447-6655

• Email:• CARES@cottlevillefpd.org

• Ask During Small Group Work Time

CARES Onlineo www.CARESforCFPD.com

o Like us on Facebookowww.Facebook.com/CottlevilleFire

Meeting Materialso Cover Sheet

o Agenda

o Meeting #4 Summary Documents

o Verbatim Responses

o Executive Summary

o Informational PowerPoint Presentation

o Work Activity

CARES Open HousesDate Time Station Address

Tuesday, Nov. 29 4 – 8 p.m. Station #3 6310 Weldon Spring Rd.

Wednesday, Nov. 30 4 – 8 p.m.

Station #4 4340 Towers Rd.

Saturday, Dec. 3 11 a.m. – 5 p.m. Station #1 1385 Motherhead Rd.

Sunday, Dec. 4 Noon - 4 p.m. Station #2 4065 Old Hwy. 94 South

CARES Speakerso Available to speak at community, church,

neighborhood and school meetings

CARES MeetingsDate Meeting Topic

Sept. 8 Kick-Off Meeting

Sept. 22 Staffing

Oct. 6 Equipment

Oct. 20 Operations, Facilities & Programs

Nov. 3 Fire District Finance 101Nov. 17 Draft Community Recommendations Presented

Week of Nov. 28 - Draft Recommendations Presented At Open Houses At Each Fire Station.

Dec. 8 Final Recommendations Presented

Finance 101

Chief Rob Wylie

Quick Reviewo District Protects 38 sq miles 40,000 Residents

o We provide Fire Protection and BLS service through 2 Divisions

o 1.Code Enforcement o Inspections / Public Education

o 2. Operationso Emerg. Response/Training/Maintenance 4 Stations

Cottleville Fire DistrictOrganizational Structure

RSMO 321

Missouri State Statute – Income Sources for Fire Districts

• Fire Districts in MO are limited as to how income can be generated to operate the District

• Sources Authorized by State Statute• Property Tax• Sales Tax• Fees from permits

Source: MO Revised Statutes RSMO321

PROPERTY TAXo Assessed Valuation = A percentage of the

True Market Value of a Propertyo Four Types of Property:

oResidential 19%oCommercial 32%o Agricultural 12%o Personal Property 33 1/3%

Property Tax CalculationAssessed Valuation x Tax Rate

100

Home = $200,000 Total Tax Rate = .6275 ¢

Assessed Value = $38,000 (19% x $200,000)

$38,000 x 0.6275 = $238.00 per year

100

$19.87 per month - .65 ¢ per day

Funding Source – Tax Rateo 2011Real-Estate and Personal Property Tax

o General Fund

o 0.5048 ¢

o Pension

o 0.0885 ¢

o Debt Service

o 0.0342 ¢

o Total 2008 Tax Rate –0.6275 ¢ (3.6% Reduction from 2010)

Residential 67%Com-mercial

16%

Personal 12%

Railroad&

Utilities5%

Assessed Valuation Cottleville FPD 2011

Source: St. Charles County Assessor’s Office

REVENUE SOURCESGeneral Fund 2011

97%

3% 2%

Revenue Source

Property TaxInterestPermits & Fees

Property Tax Reassessmento St. Charles County reassesses properties once every two

years o Resulting in growth or decline in assessment.

o In non-reassessment years the change in assessment to a property is nominal.

o Properties within the District experienced an average decrease of -3.7% in the 2011 Reassessment Year.

Source: St. Charles County Assessor’s Office

Hancock Amendmento Amendment 5, known as the Hancock

Amendment, was approved in 1980.

o The Amendment limits a taxing authority’s operating revenue growth to the lesser of:oGrowth in Assessed Valuation

oConsumer Price Index (CPI)

o Excludes New Construction the First YearSource: Article X Sections 18-24 of the Missouri Constitution

Consumer Price IndexoConsumer Price Index (CPI) is a measure of

the average price of consumer goods and services purchased by households. It is one of several price indices calculated by national statistical agencies.

Local Operating Taxes

Year Assessed Value (AV)

AV Growth Reassessment Revenue Growth

2004 $ .882 billion (CPI)

2005 $ 1.028 billion 16.5% 3.4 %

2006 $ 1.076billion 4.6 % 3.2%

2007 $ 1.211 billion 12% 2.4

2008 $ 1.240 billion 2.3 % 2.3 %

2009 $1.183 billion -4.5% 0

2010 $ 1.175 billion -6.8% 0

2011 $1.132 billion -3.6% 0

Source: St. Charles County Assessor’s Office CPI Data: Bureau of Labor Statistics

Avg. 1.6% Increase 2005-2011

Avg. 3.0% Increase2005-2011

9% 2.5%

Cottleville Community Fire District

Assessed Valuation

2007$1.21

2008$1.24

2009 $1.18 2010

$1.18

2011$1.13A

sse

sse

d V

alu

atio

nIn

Bill

ion

s

Source: St. Charles County Assessor’s Office

Property Tax RevenueReal Estate and Personal Property Tax Represent the Majority of Budgeted Revenue

2007 2008 2009 2010 2011 2012$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$5,680,417

$7,306,718

$5,625,510 $5,757,251 $5,657,587 $5,654,587

Expense Growth

$0.504

8

$0.088

5$0.0342

General

Pension

Bond

2011 Tax Rate Breakdown

Total Rate for 2011 .6275/$100 Assessed Vale

Expenses

*St. Charles County Sheriff's Dept.

**FH School District ***St. Charles County Ambulance

Dist.

Cottleville FPD88%

89%

90%

89% 89%

90%

89%

% of Budget Utilized for Personnel Costs

% of Budget Utilized for Personnel Costs

Source:*County Finance Director**FHSD 2011-2012 Budget*** SCCAD Finance Director

Operational Costs:

$514,000/mo

In 1970, less than 100,000 people lived in St. Charles County. Current U.S. Census estimates place the local population above 353,000 with nearly 67,000 people moving here since 2000.

More new residents moved into St. Charles County than anywhere else in Missouri from 2008 to 2009, according to the U.S. Census. The community attracted 5,772 new residents in that year

Source: Economic Development Center (EDC) of St. Charles County Missouri

Population Growth in St. Charles County

St. Charles County Missouri Community Development Department Planning and Zoning Division

St. Charles County experienced a 150% increase in population from 1980 to 2010

2002 Discovered Growing Deficit and Dependency on Deficit Spending

Implemented Plan to Balance Budget, Restore GR Budget and Eliminate Short Term Debt

Citizens Approve Bond to Provide for Capitol Needs of the District Relieve Pressure on GR

History

Then & Nowo Look back 25 Years

o 4 Employees

o 9,400 Resident *Approximate based on overall County Population

o 400 Calls for Service

o Look at Todayo 50 Employees

+115%

o 2700 Calls for Service +575%

o 40,000 Residents +325%

o Aging Demographics

Calls f

or Servi

ce

Population

Number of R

esponders

05,000

10,00015,00020,00025,00030,00035,00040,000

400

9,400

4

2,700

40,000

47

19862011

Then & Nowo Look back 25 Years

o 1986: 0.75/$100 Assessed Value Voter Approved Tax Rate for General Revenue

o Assessed Valuation $112,400,000

o Look at Todayo 0.5048/$100 Assessed Value Hancock Limit Tax Rate for General

Revenue *Decrease 0.24

o Assessed Valuation 1.13 Billion

5 Year Plan to Balance Budget 2002 Pay Cuts Slash Essential Spending:

Training, Public Fire Ed., Staff Positions Zero Out Capitol Budget

5 Year Pay Freeze Utilization of Bond Proceeds for Capitol Items Hire CPA Revamp Budget Procedures

5 Year Plan to Balance Budget

Results:New Administration in 2005 Improved Budget Procedures

• Spending Controls• Balanced Budget in 2006• Budget Operating Reserve in 2007,2008,2009,2010• Earmarking Operating Reserve Funds• Inclusive Budget Planning• Multi-Year Labor Agreements• 2011 Pay Concessions

5 Year Plan to Balance Budget Lasting Results in 2011:

Key Essential Function Categories not Restored

Staff Reductions not Restored

New Construction Growth in the District Stalled

Nominal Economic Conditions

2008• Economy Tanks

• Development Stops

• Assessments Drop

• Expenses Increase

• Revenues Drops & Level

2007$1.21

2008$1.24

2009 $1.18 2010

$1.17

2011$1.13

2005 2006 2007 2008 2009 2010 2011 *2012 *2013 *2014 *2015

-2500000

-2000000

-1500000

-1000000

-500000

0

500000

1000000

1500000

2000000

2500000

10Year Budget Projection

Budget Surplus (Deficit)Operating Reserve Balance(Savings Account)

*Projected

Source: Botz & Deal, CPA Rogden & Assoc., CPA

Looking at Biggest Expense Categories

Personnel Costs: 89% of Budget• Wages: Firefighter- $22.53/HR. Works 56hrs/week (increased a

total of $0.23/hr. over last 10 years)

• Health Insurance: Average Rate Increases of 12-15% AnnuallyOffset Premium Increase of 25-35% by Shifting Additional Payment Responsibility to Employees(Higher Co-Pays, Lower Drug Benefit, Employee Responsible Higher Deductibles

Workers Comp. Insurance: Employee Wellness Plan and Commitment to Safety Practices Resulted in Very Low Experience Mod. And Reduction in Premiums of nearly $10,000

Wage Comparison in St. Charles County

St. Charl

es FD

Wentzv

ille FP

D

O'fallo

n FPD

Central C

ounty FP

D

Cottleville FP

D

Lake

STL F

PD

New Melle

FPD

$-

$10.00

$20.00

$30.00 $25.85 $24.08 $23.41 $23.41

$22.53

$17.19 $15.11

Current Hourly Rate of Paid Fire Organizations

Looking at Biggest Expense Categories

Personnel Costs: (Continued)• Sick Time: 37% Under Budget YTD 2011

• Un-Scheduled Overtime: 26% Under Budget YTD 21011Schedule Modification to 48/96 Budget AwarenessModification of Work Rules

Population Demand for Service

Number of Responders

325%

575%

115%

From 1986 to 2010

Expenses Revenue

Avg. 1.6%In Last 5 Years

Assessed Value

Avg. -.2% In Last 5 Years

28%

2005-2011

1986

2036

Being Proactive

Being Proactive• Address the Issues

• Long Range Projections• Voluntary Pay Concessions• Pay Freeze

• Seek Public Input• What Does Community See as Important• What Level of Service is Acceptable

• Formulate a Plan• Take Community Input & Staff Recommendations to Elected

Officials and the Public

What’s Next?• Community Input

• What Do You Want Your Fire District to Look Like?

• What Does Community Deserve?• Are We Reflective of the Community We

Serve?

Small Group Work Activity

Select Recorder & Spokesperson

o Recorder Responsibilitieso Complete the requested information on your

group’s worksheet

o Spokesperson Responsibilitieso Facilitate Discussion

o Keep Group Focused/On Task

o Report Group’s Information

Complete the Worksheet o Make sure the information recorded on the

worksheet reflects consensus of the group

o Monitor progress to complete the worksheet in allotted time

o Only the group recorder’s worksheet will be collected

Small Group Work Activityo Task #1

o Based on the information provided in tonight’s presentation, what most surprised you? What most concerned you? oBiggest Surprise:

oBiggest Concern:

Small Group Work Activityo Task #2

oBased upon the information your group learned about the Cottleville Fire Protection District’s financial situation, what options should be considered to address future financial challenges?

Small Group Work Activityo Task #3

oWhat additional questions does your group have about the District’s finances?

Work Activity Reportingo What was your group’s biggest surprise?

o What is one option your group thinks should be considered to address future financial challenges?

Thank You!

Next Meeting: Nov. 17

Topic: Draft Recommendations