11.18.2019

FEDERAL WAY FIRE DEPARTMENT

INTRODUCTION

Over the past several years, tax relief initiatives have presented significant challenges to the budgeting process. In 1999, voters in Federal Way supported Initiative 695, yet overwhelmingly supported Federal Way Fire Department's Proposition One that would effectively negate the impacts of I-695. In 2000, voters supported Initiative 722, yet also supported increased funding for schools in two initiatives. Now in 2001, Initiative 747 will be before the voters in November in an attempt to limit property tax collection to 1% over the previous year. While interpretation of the "messages" that voters are sending continues to be a hotly debated issue, the Federal Way Fire Department will continue to take the approach that efficiency and effectiveness are essential in fire and emergency medical services.


This budget process has been very challenging with a number of issues being worked through. The major challenges include:

• The closing of our dispatch center in early 2002, with a migration to Valley Communications and al costs    associated with the change.
• Healthcare Costs increasing by a projected 26.5%.
• Labor receiving a 4.9% increase over 2001.
• Changes in upper level leadership at the department, with a new Fire Chief/Administrator and Deputy Chief/Chief of Operations being hired.
• The addition of an Administrative Secretary to support the Administrative Team and the IMS Division.

The Department's strategic plan continues to drive the need for additional staffing in Operations. The plan identified that the community has outgrown the current staffing levels within the department, and that additional staffing is necessary to provide services to the growing community. That plan includes 6 new firefighters in 2002, with these positions being filled by former dispatchers from our center which is closing. This budget has incorporated these components of the strategic plan.

On the revenue side, growth in taxes on existing properties is projected at 9.45%. Assessed valuation is projected to increase by 6.23%. These estimates are based upon data from the King County Assessor's Office. This compares to an increase in property values of 5.72% last year. Final growth in assessed valuation will not be known until early December. The final levy rate will also be determined at that time, although we are projecting to collect at the full $1.50 at this time. Property taxes on new construction are projected at $158,426. The cost of living as determined by the CPI-W mid year index was set at 3.9%. For comparison, the Implicit Price Deflator (IPD) was established as 1.89% as of July 2001. As a reminder, it takes a super-majority of the Board of Commissioners voting to exceed the limitation of 100% of the previous year’s tax collection plus the Implicit Price Deflator.

 

OPERATING BUDGET

Total operating expenses at $11,544,491 are projected to increase at a rate of 6.00% for 2002. The primary factors influencing an increase that is above the rate of inflation including healthcare insurance, the closing of the dispatch center (South Com), and six new firefighter positions. Included in this budget is the labor increase as agreed upon in the 2002-2004 contract ratified in June of 2001.

The total operating budget expenses are as shown below:

 

TOTAL DISTRICT
2001
2002
VARIANCE
DESCRIPTION
BUDGET
BUDGET
AMOUNT
PERCENT
REGULAR HOURS
309,654
303,308
-6,346
-2.0%
OVERTIME HOURS
9,468
7,412
-2,056
-21.7%
TOTAL PAID HOURS
319,122
310,720
-8,402
-2.6%
HOLIDAY SELL-BACKS
82,000
72,500
-9,500
-11.6%
REGULAR SALARIES
7,512,921
8,023,009
510,088
6.8%
OVERTIME SALARIES
352,556
298,777
-53,779
-15.3%
RESIDENT SALARIES
22,244
11,859
-10,385
-46.7%
PREMIUM PAY
33,865
33,165
-700
-2.1%
TOTAL SALARIES
8,003,586
8,439,309
435,723
5.4%
 
 
 
 
 
TOTAL EMPLOYEE BENEFITS
1,716,098
1,693,355
-22,744
-1.3%
MISCELLANEOUS SUPPLIES
183,621
200,547
16,926
9.2%
REPAIR PARTS
61,220
65,420
4,200
6.9%
SMALL EQUIPMENT
50,380
53,020
2,641
5.2%
TOTAL EQUIP. & SUPPLIES
295,221
318,987
23,767
8.1%
OUTSIDE TRAINING & TRAVEL
70,808
78,058
7,250
10.2%
RENTAL SERVICES
500
1,500
1,000
200.0%
MAINTENANCE SERVICES
82,502
65,202
-17,300
-21.0%
MISCELLANEOUS SERVICES
207,041
370,928
163,887
79.2%
TOTAL PURCHASED SERVICES
444,056
600,673
156,617
35.3%
TOTAL CONTINGENCY
95,000
120,000
25,000
26.3%
TOTAL LEGISLATIVE
4,000
39,560
35,560
889.0%
TOTAL PLANNING
1,240
1,240
0
0.0%
TOTAL FUEL & LUBE
34,800
34,800
0
0.0%
TOTAL INSURANCE
73,900
73,900
0
0.0%
TOTAL UTILITIES
203,467
203,467
0
0.0%
 
 
 
 
 
TOTAL DISTRICT EXPENSES
10,890,568
11,544,491
653,923
6.00%

 
 
CAPITAL BUDGET
The capital reserves funding system completely funded the purchase of three fire engines in 2001, with the payment and delivery coming due in early 2002.  The capital budget for 2002 has been developed based upon the scheduled major capital equipment replacements and minor capital/facilities upgrades.  Major capital equipment was brought current based upon better estimates for costs.  In addition, there are a number of facilities upgrades that are needed to keep our facilities in top condition.  The major capital items and facilities upgrades scheduled for 2002 include:
 
  • Battalion Chief Suburban- a new command vehicle is scheduled for 2002, replacing the current 1997 model in the front line. The budgeted cost will be $55,536, which includes all radios, sirens, and any specialized equipment purchases for the new apparatus. 

  • Station 63 Seismic Upgrade- as recommended by our consultant, Station 63 will receive approximately $23,000 in upgrades to make it more resistive to a significant earthquake.
 
  • Information Systems Upgrades- $133,000 has been budgeted for upgrades to our application software, hardware, and to increase the number of PC work stations to make all personnel and crews more effective and efficient. This amount also includes $15,000 which has been budgeted for new technology being studied for implementation, including alternate input devices (AID) for EMS response data entry.
 
  • Thermal Imaging Camera- we have budgeted $20,000 to purchase a thermal imaging camera for use on structure fires or other emergency incidents to increase the safety for citizens and firefighters alike. 
 
For 2002, the budget reflects $83,913 in facilities projects and upgrades.  
The Scheduled Minor Capital Equipment (items typically under $10,000 in value that are not specifically identified in the capital schedule) has been prioritized and budgeted at $44,173.
The total amount budgeted for Capital expenditures in 2002 has been finalized at $368,626.

 
Capital Carryover from 2001

The following items are being carried over from 2001 for capital purchases not completed during the last budget cycle. They do not show up on the projected bottom line for the 2002 budget, as they were already allocated against the 2001 budget. They are here for informational purposes only.

Engine @ $354,228 (bid awarded to KME)

Engine @ $354,228 (bid awarded to KME)

Engine @ $354,228 (bid awarded to KME)

Dispatch Capital for cutover @ $152,000

Mobile Data Systems @ $20,000 (the balance from $152,000)

Dispatch and Paging Cutover @ $159,067 (balance from $179,067)
 
SCHEDULED MAJOR CAPITAL EQUIPMENT:


BATTALION CHIEF SUBURBAN
$55,536

NETWORK INFRASTRUCTURE
$40,000

PC WORKSTATIONS
$28,000

SERVER SOFTWARE
$10,000

APPLICATION SOFTWARE
$40,000

STATION 68 COPY MACHINE
$12,804

NEW ENGINE EQUIPMENT
$35,000

NEW TECHNOLOGY/ALTERNATE INPUT DEVICES
$15,000

PHYSICAL FITNESS EQUIPMENT
$4,200

TOTAL SCHEDULED MAJOR CAPITAL 
$240,540






MINOR CAPITAL EQUIPMENT


THERMAL IMAGING CAMERA
$20,000

HOIST FOR FLEET DIVISION
$10,000

PORTABLE RADIO ANALYZER 
$5,000

PORTABLE RADIO WATT METER
$500

DEFIBRILLATOR ANALYZER
$1,600

8-PORTABLE BATTERY CHARGERS
$3,500

Applicable Tax
$3,573

      TOTAL MINOR CAPITAL EQUIPMENT:
$44,173






FACILITIES UPGRADES


Station 61


Replace HVAC
$31,163

Lightning Grounding
$7,500

Station 62


Rear Ramp Upgrade
$14,500

Station 63


Seismic Upgrade
$23,000

Station 65


Exterior Paint Job
$3,749

Applicable Tax
$4,001







      TOTAL FACILITIES UPGRADES:
$83,913




TOTAL CAPITAL AND FACILITIES:
$368,626


PROJECTED REVENUES

A detailed breakout of the 2002 projected revenues is shown on the following pages. Property taxes are based upon a projected Assessed Valuation of $7,337,436,195. This is an increase of 7.83% in total A/V (including new construction), and a 9.45% increase on existing properties.
 

FEDERAL WAY FIRE DEPARTMENT
 
 
 
 
2002 REVENUES
 
 
 
 
 
Gross Property Taxes
 $         11,001,292
 
Delinquent Taxes
 $             (110,013)
522.00.00.001
Property Taxes
 $         10,891,279
 
Gross Woodmont/Redondo
 $              584,153
 
Delinquent Taxes
 $                 (5,842)
522.00.00.024
Woodmont/Redondo
 $              578,311
522.00.00.030
KCEMS Fuel
 $                     275
522.00.00.021
FW School District
 $                18,000
522.00.00.022
WA State Parks
 $                        -  
522.00.00.023
WA State Highways
 $                     650
522.00.00.011
FMO Permit Fees
 $                44,526
522.00.00.012
C of FW Permit Fees
 $                38,097
522.00.00.???
Patient Transport Fees
 $                        -  
 
TOTAL TAXES AND FEES:
 $         11,571,138
 
 
 
522.00.00.025
KCEMS Dispatch
 $                11,531
522.00.00.026
KC 911 Dispatch
 $                  3,336
522.00.00.027
North Highline Dispatch
 $                14,443
522.00.00.028
SeaTac Dispatch
 $                17,446
522.00.00.029
Normandy Park Dispatch
 $                        -  
 
TOTAL DISPATCH:
 $                46,756
 
 
 
522.00.00.031
KCEMS Basic Life
 $              600,108
522.00.00.051
Interest Earned
 $              100,000
522.00.00.053
Sale of Surplus Equipment
 $                25,000
522.00.00.052
Radio Site Leases
 $                42,494
522.00.00.054
Misc. Revenue
 $                  8,769
 
TOTAL MISCELLANEOUS:
 $              776,371
 
 
 
 
TOTAL REVENUES:
 $         12,394,265

 
 
PROJECTED BALANCE SHEET INFORMATION

The following information summarizes revenues, expenses and fund balances. January 1, 2002 balances are based upon current budget projections. These are estimates and there will be some variances when actual year-end revenue and expense numbers become available in January.
 

TAX REVENUE REQUEST FOR 2002:
 
 
BASE TAXES:
 $                             10,842,866
NEW CONSTRUCTION:
 $                                  158,426
TAX REVENUES:
 $                             11,001,292
 
 
WOODMONT/REDONDO CONTRACT:
 $                                  584,153
TOTAL TAX REVENUE AVAILABLE:
 $                             11,585,445
 
 
 
 
TOTAL REVENUES:
 $                             12,394,265
 
 
TOTAL OPERATING EXPENSES:
 $                             11,544,491
 
 
INCREASE IN LONG TERM CARE RESERVES:
 $                                    53,254
 
 
INCREASE IN CASH ON HAND:
 $                                    59,933
 
 
AVAILABLE FOR CAPITAL RESERVES:
 $                                  736,587
 
 
 
 
PROJECTED FUND BALANCES AS OF 01/01/2002
GENERAL FUND ACCOUNT
 $                               2,387,686
CAPITAL RESERVE
 $                               2,113,183
CURRENT EQUIPMENT RESERVE
 $                                            -  
CASH RESERVE
 $                                  500,000
LEOFF 1 LTC RESERVE
 $                                  220,791
   TOTAL FUNDS AVAILABLE:
 $                               5,221,660
 
 
 
 
PROJECTED FUND BALANCES AS OF 01/01/2003
GENERAL FUND ACCOUNT
 $                               2,447,619
CAPITAL RESERVE
 $                               2,481,144
CURRENT EQUIPMENT RESERVE
 $                                            -  
CASH RESERVE
 $                                  500,000
LEOFF 1 LTC RESERVE
 $                                  274,045
   TOTAL FUNDS AVAILABLE:
 $                               5,702,808

 
SOURCES OF FUNDS

Property taxes remain the primary source of funding for the Federal Way Fire Department at 87.8% of funding. This is actually a somewhat understated number since Woodmont/Redondo and KCEMS Basic Life are also funded from property taxes that are levied by other jurisdictions. Woodmont/Redondo is an intergovernmental contract between the FWFD and KCFPD 26 for the protection of the Woodmont/Redondo area. KCEMS Basic Life represents BLS funding from the Medic One levy. Clearly, property taxes remain the primary source of fire department funding.
 

USES OF FUNDS

Personnel costs continue to dominate the uses of funds at 82.6%. This is to be expected since we are a service provider with low overhead and supply costs.
 


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