orland fire protection district 2014 draft operating budget

7/27/2019 Orland Fire Protection District 2014 Draft Operating Budget

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October, 2013

President Hickey and Board of Trustees:

It is our pleasure to present the 2014 Tentative Budget for your review. This budget has been

compiled with consideration ofthe Districts mission while managing and controlling costs.

This budget document has been developed to serve as the financial plan for the upcoming year.The foundation of the financial plan continues to be the mission of the District preserving lifeand property while valuing full accountability to each other and the people we serve. This missionis carried out daily by District employees who respond (and support the response) to over 8,000emergency calls each year; accordingly, personnel costs are the largest component of Districtexpenditures.

The costs to achieve the Districts mission are primarily offset by property tax revenue. Increasesin property tax revenue are limited by tax rate ceilings and property tax caps. Other sources ofrevenue including ambulance service fees, dispatch service fees, and fire prevention fees alsooffset District expenditures.

Under direction from the Board of Trustees, we worked to produce this 2014 Tentative Budgetgiving priority to programs and services that provide the greatest benefit to District residents. The2014 Tentative Budget represents the efforts of District staff in reviewing their operations,streamlining them when possible and investing in improvements to daily operations to benefit thesafety of District residents and employees. The Boards involvement ensures that District goalsare clear and provides an opportunity for communication of services and expectations.

We sincerely appreciate the efforts of all who have assisted with the preparation of the 2014Tentative Budget. Based on these collaborative efforts, we respectfully submit this 2014 TentativeBudget for your review and consideration.

Respectfully Submitted,

_______________________________ _____________________________Ken Brucki Kerry SullivanFire Chief Finance Director


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Community Profil e

The District is located in southwest Cook County, approximately 22 miles from DowntownChicago and serves the Villages of Orland Park and Orland Hills, as well as the unincorporatedareas of Orland Township. The District covers approximately 33 square miles and has apopulation of approximately 75,000. The number of households within the District is

approximately 25,000. The daytime population is higher due to the heavy retail concentration ofOrland Park and Orland Hills. The area is easily accessible by OHare and Midway Airports,several interstate highways and Metras commuter rail system.

The Districts Tax Year 2012 equalized assessed valuation (EAV) was $2,378,592,213, a 7.8%decrease from the Districts 2011 EAV. The decrease was mostly caused by a decrease in CookCountys equalization factor. The Cook County Assessors Office, who reassesses property everythree years, reassessed property in South Cook County, including the District, in Tax Year 2011.The District has a diverse economic base; approximately 69% of the Districts EAV is related toresidential development, 26% is related to commercial development, and 5% is related to industrialdevelopment.

Major employers within the District include Orland School District #135, the Village of OrlandPark, Panduit Corporation, Consolidated High School District #230, Jewel/Osco, Darvin Furniture,and Palos Primary Care. The District is the location for much retail development, includingOrland Square Mall, Orland Park Place Mall, Orland Crossings, and Orland Towne Center, alongwith numerous other retail centers.

Distri ct Facil ities

The District currently operates six fire stations, a vehicle maintenance facility, a regional trainingcampus, and an administration/dispatch headquarters building. The fire stations were strategicallybuilt to minimize response times based on projected populations.

Distr ict Personnel

The mission of the Districts staff is to preserve life and property while valuing full accoun tabilityto each other and the people we serve.

The District has an elected, five-member Board of Trustees. The Fire Chief, who is appointed bythe Board of Trustees, is responsible for the daily operations and management of the District.

At a minimum, the District staffs four engine companies, two truck companies, and five ambulancecrews daily. To accomplish this response capability, the District employs 117 full-timefirefighting personnel including 6 Chief Officers, 33 Lieutenants, 30 Engineers and 48 Firefighters.Of the firefighting personnel, 109 are certified paramedics. These personnel provide a variety ofservices to the residents of the District including fire suppression, emergency medical services, andrescue services. In addition to these core services, the District has personnel who have beenspecially trained to respond to hazardous materials incidents, underwater rescue incidents, andtechnical rescue incidents.

The District employs 24 full-time non-sworn employees who support the Dis tricts swornpersonnel and residents in the areas of dispatch, fire prevention, public education, administration,building maintenance and fleet maintenance. In addition, part-time employees are utilized toaugment support operations.


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Orland Fi re Protection District

A map of the District follows:


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2014 Budget Process

The 2014 budget process is summarized below.

District personnel prepare budget requests June / July 2013

Initial budget review meetings are conducted withDepartment heads, Finance Director and Fire Chief September 2013

Board of Trustees review proposed budget October 2013

Publication of notice of display of tentative 2014 Budgetand Appropriation Ordinance and Notice of the Public Hearingon the 2014 Budget and Appropriation Ordinance October 2013

Display of tentative 2014 Budget and Appropriation Ordinance October 2013

Adoption of a Finding regarding the estimated aggregate amountof taxes needed to be raised in the next year November 2013

Execution of Certificate of Estimate of Revenue November 2013

Public hearing on 2014 Budget and Appropriation Ordinance November 2013

Adoption of 2014 Budget and Appropriation Ordinance November 2013

Publication of Proposed Property Tax Levy Notice December 2013

Publication of 2014 Budget and Appropriation Ordinance December 2013

Public hearing on proposed 2013 Tax Levy Ordinance December 2013

Filing of certified and sealed copy of 2014 Budget andAppropriation Ordinance and the Estimate of Revenue withthe Cook County Clerk December 2013


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Revenue

Revenue for all funds for 2012 Actual, 2013 Budget and 2014 Budget is summarized below:

2012 2013 2014Actual Budget Budget

Property taxes $26,611,660 $26,204,546 $26,403,256

Other taxes 106,044 111,000 103,200

Ambulance fees 1,951,756 1,800,000 2,100,000

Dispatch services 625,764 674,577 630,439

Communication fees 214,306 184,716 192,208

Fire Prevention fees 9,525 10,000 10,000

Grant proceeds 164,790 -0- -0-

Salary reimbursement 181,046 185,900 -0-

Insurance contributions 390,815 498,153 948,498

Interest 47,769 50,000 50,000

Finance Proceeds 26,715,000 -0- -0-

Other revenue 91,127 212,600 15,000

Total $57,109,602 $29,931,492 $30,452,601

Property taxes represent 86.7% of the 2014 budgeted revenue. The District levies property taxesfor the purposes of the following funds Corporate, Tort Immunity, Bonds and Interest, IllinoisMunicipal Retirement Fund, Pension, Ambulance Service, Audit, Emergency Rescue, and SocialSecurity.


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Historical Property Tax Rates by Tax Year are summarized below.

R = Reassessment

All the Districts property tax levies except the Bond and Interest levy and the portion of thePension Fund levy associated with Public Act 93-0689 are subject to PTELL, commonly known asproperty tax caps. In general, the annual growth in property tax revenue permitted under PTELL isthe lesser of 5% or the percentage increase in the Consumer Price Index (CPI) during the calendaryear preceding the levy year. The CPI for property taxes for the 2014 budget is 1.7%.

Taxes can also be increased due to new construction within the District. Due to economicconditions, new construction within the District had slowed. The equalized assessed valuation(EAV) of new construction historically has represented 2-3% of the Districts total EAV. In TaxYears 2011 and 2012, new construction represented 0.3% of the Districts total EAV. In 2012,building permits in the Village of Orland Park have been issued at a rate not seen since 2005.While this is merely a projection, it is a positive sign of economic growth.

In addition to property tax caps, there are tax rate ceilings on the Districts Corporate Fund,Ambulance Fund, and Rescue Fund. A decrease in the Districts EAV causes the tax rates to

increase; accordingly, tax rate ceilings are more likely applied.

The 2014 budget property tax calculation continues the Boards election to abate property taxes ofapproximately $1,300,000 per year.

0.9584

0.9778

0.9556

1.0189

1.0622

0.97150.9741

0.951

0.8510.837

0.879

1.05

1.127

0.80

0.85

0.90

0.95

1.00

1.05

1.10

1.15

2000 2001 2002R

2003 2004 2005R

2006 2007 2008R

2009 2010 2011R

2012


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Estimated 2014 budgeted property tax revenue, by fund, is summarized below.

37%

29%

17%

12%

4% 1%

General Fund

Ambulance Fund

Pension Fund

Tort Fund

Rescue Fund

Other

Other taxes include personal property replacement taxes and foreign fire insurance. Replacementtaxes are paid by businesses to replace revenue that was lost by local governments when they losttheir power to impose personal property taxes on businesses in the 1970s. Foreign fire insurance

payments are made by every out-of-state insurance corporation for insurance premiums paidwithin the District. The foreign fire insurance fund is managed by an independent Board of

Trustees, but is included in the Districts overall budget.

Ambulance fees represent 6.9% of the 2014 budgeted revenue. The District bills non-residents andthe insurance companies of residents for ambulance service.

Dispatch and communication services revenue includes revenue from dispatch services, towerspace leases and alarm monitoring and represents approximately 2.7% of the 2014 budget revenue.Currently, the District provides dispatching services for Calumet City and Oak Forest, alarmmonitoring services for Tyco, and leases tower space to a number of cell phone companies.

Other revenue includes employee and retiree contributions toward health insurance, interest

earnings and other miscellaneous sources of revenue.


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Expenditures

Expenditures for all funds for 2012 Actual, 2013 Budget and 2014 Budget are summarized asfollows:

2012 2013 2014

Actual Budget Budget

Wages $16,106,117 $15,530,502 $16,685,049

Clothing 224,558 125,599 174,900

Benefits 4,211,777 4,328,591 4,546,566

Pension Funding 30,157,004 4,217,477 4,505,615

Continuing Education 76,483 152,909 127,681

Supplies 641,501 436,616 399,721

Repairs and Maintenance 543,177 736,440 602,590

Utilities and Fuel 274,246 360,005 361,500

Professional Services 559,849 287,000 350,000

Property, Liability &Workers Comp Insurance 1,181,120 1,115,532 1,129,100

Bad Debt 131,912 150,000 150,000

Software 830 7,500 13,500

Testing 12,950 29,500 45,000

Debt 1,058,850 1,071,600 1,115,400

Equipment 265,700 205,000 -0-

Other 657,884 280,985 325,000

Total$56,103,958 $29,035,256 $30,531,622


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Estimated 2014 expenditures by major category are summarized as follows.

88%

5%4% 3%

Personnel

Supplies, Repairs, Utilities,

and Fuel

Debt

Other

Personnel expenditures, including compensation, clothing, health and life insurance, payroll taxes,pension contributions, and workers compensation premiums represent 88% of the Districts 2014budgeted expenditures.

Wage increases estimated in the 2014 budget are based on labor agreements with OrlandProfessional Firefighters Local 2754 and IBEW 134.

Benefit expenditures include health and life insurance, payroll taxes, and medical exams.

Pension contributions for members of the Orland Firefighter Pension Fund are based on anactuarial analysis prepared at the direction of the Pension Funds Board of Trustees. Pensioncontributions for non-sworn employees are based on requirements calculated by the IllinoisMunicipal Retirement Fund. Principal and interest payments are being made on taxable debtcertificates issued in December, 2012, in the amount of $26,715,000 to pay the actuarial unfundedliabilities of the Districts pension funds.

Supplies include expendable items as well as small equipment. Expendable supplies include non-exchangeable patient care supplies, public education supplies, station supplies, vehiclemaintenance parts, and office supplies. Small equipment purchases include non-exchangeablepatient care supplies, replacement cots, emergency medical equipment, replacement specialty teamequipment, computer equipment, opticom equipment, and safety equipment.

Repairs and maintenance expenditures include repairs and maintenance of the Districts facilitiesand equipment.

Professional services expenditures include legal services and audit services.


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Insurance expenditures include general property and liability insurance as well as workers compensation insurance.

Bad debt expense recognizes uncollectible ambulance service fees for non-residents.

Debt expenditures are related to interest and principal payments on the Series 2007 Bonds. TheDistrict received an Aa2 rating from Moodys Investors Service for the Series 2007 Bond issue.The Districts rating has since been upgraded to Aa1 by Moodys Investors Service.

Other expenditures include utilities, fuel, software, testing, and other miscellaneous costs of theDistrict.

The proposed 2014 Budget and Appropriation Ordinance follows.


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STATE OF ILLINOIS )) SS

COUNTY OF COOK )

SECRETARY'S CERTIFICATE

I, Jayne Schirmacher, the duly qualified and acting Secretary of the Board of Trustees of

the Orland Fire Protection District, Cook County, Illinois, do hereby certify that the attached

hereto is a true and correct copy of an Ordinance entitled:

ORDINANCE NO. ___________

BUDGET ORDINANCE AND ANNUAL APPROPRIATIONS OF ORLAND FIRE

PROTECTION DISTRICT, COOK COUNTY, ILLINOIS FOR FISCAL YEAR

BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014

which said Ordinance was adopted by the Board of Trustees at a meeting held on the ___th day of

November, 2013.

I do further certify that a quorum of said Board of Trustees was present at said meeting,

and that the Board complied with all requirements of the Illinois Open Meetings Act as well as any

local ordinance requirements for the holding of meetings.

IN WITNESS WHEREOF, I have hereunto set my hand this ___th day of November,

2013.

________________________Secretary, Board of TrusteesOrland Fire Protection District


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ORDINANCE NUMBER __________

BUDGET ORDINANCE AND ANNUAL

APPROPRIATIONS OF ORLAND FIRE PROTECTION DISTRICT,

COOK COUNTY, ILLINOIS, FOR FISCAL YEARBEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014

WHEREAS, the Board of Trustees of the Orland Fire Protection District, Cook County,

Illinois, caused to be prepared in tentative form a budget for public inspection, and

WHEREAS, a public hearing on the Budget and Appropriation Ordinance was held on

November __, 2013, and notice of the hearing was given at least thirty days prior thereto as

required by law, and all other legal requirements have been met.

NOW, THEREFORE, Be it Ordained by the Board of Trustees of the Orland Fire

Protection District as follows:

Section 1: The fiscal year of this Fire Protection District is hereby fixed to begin

January 1, 2014 and end December 31, 2014.

Section 2: The following describes the estimated fund balances at the beginning of the

fiscal year, an estimate of revenue expected to be received during the fiscal year, estimate of the

expenditures contemplated for the fiscal year, estimated appropriations, and an estimate of fund

balances at the end of the fiscal year.


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Corporate Fund

Estimated Fund Balance, Beginning of Year $ 7,622,611Estimated Revenue:

Insurance Contributions $ 414,821Fire Prevention 10,941Public Education 2,177

Information Technology 907Communications Services 279,563Vehicle Maintenance 2,450Foreign Fire Insurance 66,200Training 1,633Property Taxes 14,152,065Replacement Taxes 12,327Interest 16,658Other 5,068

Total 14,964,810Subtotal 22,587,421Estimated Expenditures: Appropriation

Sworn Personnel Wages $ 6,398,432 $7,358,197Clothing 77,697 89,352Benefits 1,663,403 1,912,913Small Tools 18,500 21,275Hose 12,800 14,720SCBA 10,078 11,590Arson 32,340 37,191Fire Prevention 205,712 236,569Public Education 108,949 125,291Computers 97,867 112,547Maps 10,885 12,518Dispatch 332,572 382,458

Communications 32,515 37,392Opticom 5,000 5,750Station Supplies 10,761 12,375Buildings and Grounds 153,865 176,945Vehicle Maintenance 218,880 251,7122% Fund 66,200 76,130Training 235,588 270,926Pension 2,897,199 3,331,779Debt Certificates 1,500,960 1,726,104Administration 361,761 416,025Public Information 19,323 22,222Testing 45,000 51,750

Honor Guard 11,081 12,743Seasonal Assistance 20,000 23,000

Total $14,547,368

Transfer to Debt Service 1,115,400Estimated Fund Balance, End of Year $ 6,924,653


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Audit Fund

Estimated Fund Balance, Beginning of Year $ 8,725

Estimated Revenue:Property Taxes $ 30,000Total 30,000

Subtotal 38,725Estimated Expenditures: Appropriation

Administration $ 30,000 34,500Total 30,000

Estimated Fund Balance, End of Year $ 8,725

Tort Fund

Estimated Fund Balance, Beginning of Year 744,110

Estimated Revenue:Benefits 72,143Fire Prevention 2,735Fleet Maintenance 817Training 1,089Property Taxes 3,079,533Total 3,156,317

Subtotal 3,900,427

Estimated Expenditures: AppropriationSworn Personnel 1,127,811 1,296,982Clothing 13,695 15,749Benefits 289,287 332,680Fire Prevention 51,428 59,142Juvenile Firesetters 3,781 4,348Opticom 10,000 11,500Fleet Maintenance 74,387 85,545

Training 157,059 180,618Fitness 20,225 23,259Safety 22,287 25,630Administration 84,373 97,029Insurance 1,129,100 1,298,465Total 2,983,433



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Debt Service Fund

Estimated Fund Balance, Beginning of Year $ -0-

Estimated Expenditures: AppropriationDebt payments $1,115,400 1,282,710Total 1,115,400

Transfer from General Fund 1,115,400

Estimated Fund Balance, End of Year $ -0-

IMRF Fund


Estimated Revenue:Property Taxes $ 141,786

Total 141,786Subtotal 221,560Estimated Expenditures: Appropriation

Administration $ 141,786 163,054Total 141,786



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Capital Reserve Fund

Estimated Fund Balance, Beginning of Year $4,049,230

Estimated Expenditures: Appropriation

Training $ 11,250 12,938Total 11,250

Estimated Fund Balance, End of Year $4,049,230


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Ambulance Service Fund

Estimated Fund Balance, Beginning of Year $ 4,743,318

Estimated Revenue:

Insurance Contributions 387,767EMS 2,110,000Public Education 544Information Technology 1,645Communication Services 507,282Fleet Maintenance 4,409Property Taxes 7,665,920Replacement Taxes 22,367Interest 30,226Other 9,196Total 10,739,356

Subtotal 15,482,674Estimated Expenditures: Appropriation

Sworn Personnel Wages 5,972,674 6,868,575Clothing 72,527 83,406Health Insurance 1,554,920 1,788,158SCBA 17,284 19,877EMS 304,474 350,145Public Education 28,240 32,476Computers 177,583 204,220Maps 19,749 22,711

Dispatch 603,465 693,985Communications 59,002 67,852Opticom 5,000 5,750Buildings and Grounds 279,196 321,075Station Supplies 19,526 22,455Vehicle Maintenance 393,984 453,082Administration 926,428 1,065,392Public Information 35,062 40,321

Total 10,469,114

Estimated Fund Balance, End of Year $5,013,560


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Social Security Fund


Estimated Revenue:

Property Taxes $ 321,844Total 321,844

Subtotal 358,793Estimated Expenditures: Appropriation

FICA & Medicare $ 321,844 370,120Total 321,844



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Emergency Rescue Fund


Estimated Revenue:Insurance Contributions 27,054Information Technology 170Vehicle Maintenance 490Communications 52,298Property Taxes 1,012,104Replacement Taxes 2,306Other 948Interest 3,116

Total 1,098,486Subtotal 1,591,988Estimated Expenditures: Appropriation

Sworn Personnel Wages 464,451 534,119Clothing 5,640 6,486Benefits 108,483 124,755SCBA 1,885 2,167Hazardous Materials 31,013 35,665Underwater Rescue 22,432 25,797Tactical Rescue 61,840 71,116Atmospheric Monitoring 15,506 17,831Computers 18,308 21,054Maps 2,036 2,341Dispatch 62,213 71,545

Communications 6,083 6,995Buildings and Grounds 25,670 29,520Station Supplies 2,013 2,315Vehicle Maintenance 36,926 42,465Administration 43,304 49,800Public Information 3,614 4,156

Total 911,417



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Section 3: The Boards attorney is authorized to file a certified copy of this Ordinance with theCook County Clerk.

Section 4: The Secretary is hereby authorized to file the budget and appropriations ordinance

pursuant to law.

Section 5: This Ordinance shall be in full force and effect from and after its passage, approvaland publication as provided by law.

Adopted this ___th day of November, 2013, by the following roll call vote:

AYES:

NAYS:

ABSENT:

________________________President, Board of TrusteesOrland Fire Protection District

ATTEST:

________________________Secretary, Board of TrusteesOrland Fire Protection District

orland fire protection district 2014 draft operating budget

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