2014 Budget
where the very best serve our community
2014 Budget
Table of Contents 5
Introduction & Profile
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Organization Chart
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18 19
20 21
26 27
28 29
30 31
36 37
38 41
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76 77
78 79
80 82
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86 87
89 91
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Names and Titles of Elected and Appointed Officials Mission and Vision Statement Values
Front Range Map
Fire Station Locations Map Fire Stations
Property Value, Construction and Bank Deposits Schedule 17 Principal Employers Schedule 16
Demographic Statistics Schedule 15
Ratio of Net General Bonded Debt to Assessed Value Budget Overview Budget Message Budget Process
Budget Calendar
Budget/Financial Policies Strategic Plan
Budget Tax Summary
Summary of Financial Sources & Uses General Fund
General Fund Description Budget Tax Summary
General Fund Budget Summary Fund Balances
General Fund by Object Code Administration Division
Administration Definition Administration Divisions
Administrative Divisions by Cost Center
Summary of Administrative Division by Object Code General Administration/Budget Summary Chief’s Office Budget Summary Awards Budget Summary
Board of Directors Summary
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2014 Budget
Table of Contents 97
Honor Guard Budget Summary
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EMS Billing & Collection Budget Summary
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105 107
109 111
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114 115
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120 122
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126 128
130 132
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136 138
140 142
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146 148 150 152
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156 158
160 162
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Finance Budget Summary
Human Resources Budget Summary
Apprenticeship Council Budget Summary Civil Service Budget Summary Schools Budget Summary
Information Technology Budget Summary Benefit Allocation Budget Summary Operations Division
Operations Division Definition & Divisions
Operations Division Budget by Cost Center
Summary of Operations Division by Object Code Operations Budget Summary Staffing Budget Summary
Volunteer Budget Summary EMS Budget Summary
Safety Budget Summary
Hazardous Materials Budget Summary Technical Rescue Budget Summary Wildland Budget Summary
Dive Team Budget Summary TEMS Budget Summary
Emergency Fire Fund Budget Summary
Apparatus & Equipment Committee Budget Summary SCBA Budget Summary
Fire Hose Budget Summary Ladder Budget Summary
Bunker Washer Budget Summary
Communications Budget Summary Accreditation Budget Summary Training Budget Summary
3300 S. Field Street Budget Summary Stations and Their Budgets Definitions
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2014 Budget
Table of Contents 164
Total Station by Object Account
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South Kipling Street
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189 191
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198 199
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Individual Stations Budgets Old Station Eight
Life Safety Division
Life Safety Division Definition
Life Safety Division Budgt by Cost Center
Life Safety Divison Budget by Object Code Investigations Budget Summary Grant Information
Grant Information Definition
Grant Information Budget Summary
General Obligation Debt Service Fund
General Obligation Debt Service Fund Description
General Obligation Debt Service Fund Budget Summary 2014 Budget Tax Summary
General Obligation Bond Debt Service
General Obligation & Capital Projects Funds
General Obligation & Capital Projects Funds Definition
General Obligation & Capital Projects Funds Budget Summary Colorado-Task Force One (CO-TF1) Special Revenue Fund CO-TF1 Special Revenue Fund Definition CO-TF1 Budget Summary
CO-TF1 Cooperative Agreement
CO-TF1 Lower North Fork, Hurricane Sandy, NCR, Oklahoma Tornadoes Fleet Maintenance
Fleet Maintenance Definition
Fleet Maintenance Internal Service Fund
Apparatus/Vehicle Replacement Internal Service Fund Definition
Apparatus/Vehicle Replacement Internal Service Fund Budget Summary Apparatus Replacement Schedule
Training Center Internal Service Fund
Training Center Internal Service Fund Definition
Training Center Internal Service Fund Budget Summary Glossary of Terms
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Introduction & ProďŹ le
Elected and Appointed OďŹƒcials Administration Organization Chart Mission Statement/Vision Statement Values Front Range Map Station Map Fire Stations Schedule 17
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Introduction West Metro Fire Protection District Names and Titles of Elected and Appointed OďŹƒcials Elected Board of Directors President
District 4
Pam Feely
District 2
Randy McConnell
Vice-President
District 5
Secretary
District 3
Joseph Margotte
Director
District 6
Kristina Moeder
Treasurer Director Director
District 1
District 7
Mike Munden
James Kullhem Wendy Volmer
Administration Fire Chief
Donald Lombardi
Deputy Chief of Administration
Mark Krapf
Deputy Chief of Operations
Scott Rogers
Division Chief of Emergency Medical Services and Safety
Bruce Dikken
Division Chief of Life Safety
Division Chief of Communications Technologies Division Chief of Training
Information Technology Division Director Fleet Maintenance Division Director Finance Manager
Bruce Kral
Mike Murphy
Steve Aseltine Patrick Purdy
Steve Weathersby Linda J. Gregory
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Organizational Chart
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Organizational Chart
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Organizational Chart
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Organizational Chart
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Organizational Chart
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Organizational Chart
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Organizational Chart
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Organizational Chart
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Organizational Chart
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Organizational Chart
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Mission & Vision Statements Mission Statement A mission statement is a general description of why an organization exists and clarifies the District’s purpose. We have reviewed the mission statement in 2009 to ensure it adequately reflects the District’s role within the community.
The members of the District are committed to providing professional Fire Protection, Emergency Medical Services, Life Safety, and Community Service with a vision that shapes the future.
Vision Statement Mission statements often lead to vision statements and describe how the District wishes to be viewed within the community. Vision statements reflect what the District looks like as it fulfills the mission statement.
West Metro Fire Rescue is a committed professional organization determined to utilize our strengths and abilities to become a nationally recognized world class leader in the fire service by the year 2016.
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Values
Values
Values really matter to each of us; the ideas and beliefs we hold as special. Values are, in fact, powerful drivers of how we think and behave. Values help the District members make decisions. They also help us decide what is more or less important. Identifying the District’s values helps develop a foundation of which the District is and drives strategic planning. We value: • People – We value the members of our community and members of the District; they are our family. We strive to protect them by providing exceptional service.
• Compassion – We value caring for citizens. Compassion is a key to providing effective outcomes.
• Communications – We value timely and effective response to the concerns of our customers and stakeholders.
• Service – We value the selfless action of giving without regard to reward or the benefits of recognition, and value pride of ownership in our District. • Safety – We value a healthy working environment that requires a commitment to safety, minimizing risk to our citizens, and ensuring a safe return to our families.
• Commitment – We value actively engaging, believing in duty and service, and doing what is right. • Excellence – We value a highly effective organization that strives for a high level of performance. Providing a high level of performance includes being productive, efficient, responsible and accountable.
• Strategic Management – We value anticipating future developments today, so that actions can be taken to seize opportunities. We also value development of individuals, plans and systems to meet future needs. • Diversity – We value a diverse workforce that honors and respects our individual and group differences and reflects the community we serve.
• Prevention – We value prevention of emergencies and awareness of the dangers to our citizens so we can save lives and build public support for our services. • Lifelong Learning – We value all learning opportunities. 18
Front Range Map
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West Metro Fire Rescue Fire Station Locations
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Fire Stations
Station 1 - Built 1975 6401 W. 14th Avenue, Lakewood
Station 2 - Rebuilt 1992 1545 Robb St., Lakewood
Station 3 - Rebuilt 1991 95 Garrison St., Lakewood
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Station 4 - Rebuilt 2009 13155 W. Alameda Pkwy., Lakewood
Station 5 - Rebuilt 2011 14055 West 20th Avenue, Golden
Station 6 - Built 1985 15100 West 6th Avenue, Golden
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Fire Stations
Fire Stations
Station 7 - Rebuilt 2007 6315 W. Mississippi Avenue, Lakewood
Station 8 - Rebuilt 2009 9095 W. Jewell Avenue, Lakewood
Station 9 - Built 1992 15100 West 6th Avenue, Morrison
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Station 10 - Rebuilt 2009 3535 S. Kipling St., Lakewood
Station 11 - Built 1976 15629 W. Belleview Avenue, Morrison
Station 12 - Built 1984 9990 W. Alamo Place, Littleton
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Fire Stations
Fire Stations
Station 13 - Built 1997 12613 W. Indore Place, Littleton
Station 14 - Built 1975 10305 W. ChatďŹ eld Avenue, Littleton
Station 15 - Built 1985 6220 N. Roxborough Park Road, Littleton
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Property Value, Construction and Bank Deposits Last Ten Fiscal Years Schedule 17 (unaudited)
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Principal Employers Schedule 16 (unaudited) December 31, 2011
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Demographic Statistics Last Ten Fiscal Years Schedule 15 (unaudited)
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Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita Last Ten Fiscal Years Schedule 12 (unaudited) (per $1,000 of assessed value)
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Budget Overview
Budget Message Budget Process Budget Calendar Budget/Financial Policies Strategic Plan 2014 Budget Tax Summary Summary of Financial Sources and Uses
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Budget Message
Introduction: It is our pleasure to transmit to you the 2014 proposed budget for West Metro Fire Protection District. The West Metro Fire Protection District provides fire suppression, emergency medical, and other emergency services pursuant to provisions of the Colorado Special District Act. This budget for fiscal year 2014 is submitted as directed by the board of directors and as required by Colorado law. The budget is a financial master plan for the District and is prepared in accordance with the modified accrual basis of accounting. The 2014 budget contains eight appropriated funds established by the board of directors. • General Fund - Accounts for all financial resources except those reported in the other funds of the District.
• GO Bond Debt Service Fund – General obligation debt service as well as authorized tax revenues are segregated in this fund.
• Capital Projects Fund - Utilized for major capital projects of the District financed with leases and general fund operating transfers. • GO Bond Capital Projects Fund – Capital projects financed by general obligation debt proceeds are segregated in this fund.
• CO-TF 1 Special Revenue Fund accounts for the grant activities of Colorado Task Force 1. The District is the administrating agency for the Colorado Task Force 1, funded through the Department of Homeland Security grants.
• Apparatus and Replacement Internal Service Fund accounts for the replacement program for vehicles and apparatus though user fees.
• Fleet Maintenance Internal Service Fund supports itself through user charges to the District and outside agencies.
• Training Center Internal Service Fund provides the District and outside agencies a facility for academies and training funded by the District’s and outside agency user fees.
Governmental Structure: The District services approximately 110 square miles within Jefferson and Douglas Counties, spanning from the city and county of Denver on the east and westward into the foothills of the Colorado Rocky Mountains. The city of Lakewood, town of Morrison, and the Roxborough Metropolitan District are within the District’s boundaries, which also covers many unincorporated communities. The District has a population of approximately 247,650 and the market value of property being protected in the District is over twenty-four billion dollars. The District operates under a publicly elected board of directors and is administered by the fire chief. The board is responsible for, among other things, policy making, adopting the budget, appointing committees, managing long-range planning and hiring the fire chief. The fire chief is responsible for 31
Budget Message
carrying out the policies of the board of directors and for overseeing the day-to-day operations. The District is divided into seven director districts, with directors elected on a non-partisan basis to four-year staggered terms. The District has 15 fire stations and the 2014 budget contains 377 employees. Front line fire apparatus includes fifteen fire engines, three tower trucks, nine ambulances and one heavy rescue unit. There are several apparatus units in reserve. In addition to the front line units, the District has an underwater rescue unit, a technical rescue truck, a hazardous material response van, and brush trucks. The district chief, safety and medical officer, and public information officer units also respond to incidents.
Local Economic Condition and Outlook: The District’s major revenue source is property tax, which represents 72.95 percent of total general fund revenue and is based on the mill levy rate and assessed value of property. The District’s total operating levy is 12.382 mills and should generate approximately $35.3 million in property tax collections. The general obligation bond debt service fund includes a 1.130 mill levy for 2014 to meet the debt service requirements of general obligation debt issued during 2006 and 2007. The mill levy for the GO bond debt will generate $3.2 million in revenue and assist in reducing principal and interest by $3.2 million. The District’s goal for the 2014 budget year is to recognize the strategic priorities that include maintaining long-term stability and ensuring appropriate levels of service to the members of our community during economically difficult times. The District has received status as an accredited fire agency through the Commission on Fire Accreditation International. Of primary importance to the District will be the maintenance of the operating contingency and the unrestricted fund balance. The District is presenting a budget that accesses the unrestricted fund balance in the amount of $616,000, a difficult decision in this current economy. In conjunction with this proposed budget, the District will actively seek to minimize the deficit in 2014 by purposefully reducing service levels while minimizing the impact to the citizens of the District. The adjustment to service levels will reduce operational overtime costs to assist the District in maintaining long-term stability. The comprehensive fund balance policy for the general fund establishes a minimum requirement of 18% unrestricted fund balance based upon anticipated general fund revenues. As a result of basically unchanged property values and taxes and decreased projected revenue from EMS transports, the District will access unrestricted fund balance to maintain current service levels.
The District recognizes that future property values may remain flat requiring the District to expand options to maintain financial sustainability and rebuild reserves currently accessed in this budget. The challenge then will be for the District to protect reserves and infrastructure, while maintaining the same service levels. This will require the District to move more fully to a budgeting for outcomes or a priority based model. Having completed the accreditation process should provide the District with information to assist in this process. The District’s outcome will be to move beyond short-term strategies during fiscal distress and begin replenishing reserves and rebuild capital programs. District management will review options and alternatives available to ensure the unrestricted fund balance remains intact in future years. The District continues to budget with a conservative approach to revenue recognition and a realistic approach to expenditures. 32
Budget Message
Budget Process: The budget process is initiated by updating and reviewing five-year financial forecasts under various economic models. These models provide a foundation for communication of overall budgetary goals to department managers. The District takes a conservative approach to projecting revenues and a realistic approach to projecting expenditures. Department managers develop the budget with overall guidance and philosophy that is outlined by the budget directional committee.
The District prepares a budget for funds that are subject to the budget requirements of state law. The budgeting process allows for citizen input through various stages of preparation, public hearings, and approval of the budget by the board of directors.
Budget Management: The board of directors’ resolution authorizing appropriations at the fund level sets the amount by which expenditures cannot exceed appropriations. Appropriations lapse at the year-end. Additional resources not anticipated in the original budget may be added through the use of a supplemental budget.
Internal budgetary control is maintained at the department level through monitoring of the following cost categories at that level: • Personnel Services – includes the salaries and fringe benefits of full-time and part-time employees. • Materials and Services – include supplies, maintenance and repair, rent, utilities, and contracts for professional services for legal counsel and audits.
• Capital Outlay – includes the costs of land, buildings and improvements, furniture and equipment.
• Other Expenditures – includes special appropriations not included in the above categories such as inter-fund operating transfers, debt service and contingency funds.
Highlights: The general fund $48,422,356 revenue budget for 2014 represents a increase of approximately $306,572 when compared to the 2013 adopted budget. This increase is comprised primarily of an increase in the contractual revenue due to contract renewals. Various other revenue streams increased or decreased comparatively less. Anticipated EMS revenue has decreased from the prior budget year. In 2013 the District conducted an RFP to contract EMS billing services with the goal of a reduction in the cost to the District for those billing function. Economic conditions, including sequestration, factor into an updated revenue stream lower than 2013. Property taxes have remained relatively unchanged subsequent to the new assessment. The general fund 2014 budgeted expenditures excluding contingency appropriations explained below, decreased by $881,016 to $49,038,525. Salaries and benefits reflect a decrease of $473,998 attributable to two principal areas. The 2014 budget represents a decrease in uniformed positions to 327 due to retirement. The District has not scheduled an academy to offset these personnel. The District’s budget for 2014 also includes the effect of staff reduction for EMS billing; the result of contracting for these services to reduce the cost of government. Finally, the District has actively sought to manage overtime and accomplished this for 2013 and the future by implementing a change in the strategic location of one of the medic units. 33
Budget Message
The Operations Division has decreased the budgeted expenditures for 2014 from $43,283,241 to $42,387,364 with the principal decrease due to two primary areas. As stated earlier, current uniformed individuals has decreased with retirements. The balance of the decrease in operational costs is the decision of the District to forego for 2014 the funding of the Apparatus Replacement Fund. The District will continue on their scheduled replacement plan for 2014 and beyond for apparatus, and will be able to maintain for 2014 the current decision to maintain $6,000,000 in the Apparatus Replacement Fund for future purchases.
The general fund contingency expenditure budget totaling $6,600,000 in 2014 represents reserves that have been appropriated, but actual expenditure of the contingency line item is not likely. Annually, the District also recognizes amounts designated in the fund balance as non-spendable, restricted and unrestricted. Non-spendable amounts represent items that by their very nature are not convertible to cash; i.e., prepaid expenses. The District has a separate emergency reserve in order to comply with Article X, Section 20 of the state Constitution. Unrestricted fund balance includes items committed, assigned and unassigned. Spending from these categories is based on a comprehensive fund balance policy designating the authority whereby these funds may be accessed. The board of directors has committed $4,401,182 of the unrestricted fund balance for payment to the health trust for health insurance. The unassigned fund balance of the District for the year end 2014 is anticipated to be ($2,540,219). Negative unassigned fund balance isolates and identifies that portion of the fund balance that is unavailable to support the following period’s budget. Total general fund unrestricted fund balance (Including $6,600,000 of contingency not expected to be expended) are projected to total $10,858,162 on December 31, 2014, or 22.42% of budgeted revenues. The general obligation bond debt service fund was established during 2006 to account for the collection of taxes and payment of principal and interest for general obligation debt. Payment of principal and interest on the four bond issues total $3.2 million. In 2013 the District refunded the 2006A and 2006B bond issues, essentially refinancing the debt on those bonds from 2017 forward with the 2013 bond series. This transaction resulted in a savings to be realized by the taxpayer of $1.8 million over the life of the bond.
The capital projects fund appropriation for 2014 of $94,553 represents expenditures under the contingency classification.
The general obligation bond capital projects fund budget was adopted to account for financial resources collected and used for the acquisition or construction of major capital facilities financed with the GO bond proceeds. The 2014 appropriation is $1,030,898 for these projects. The District anticipates completing all bond projects during 2014.
The Colorado Task Force One (CO-TF1) special revenue fund was established by the board of directors to account for Department of Homeland Security federal grants. West Metro is the sponsoring agency of CO-TF1, and has been awarded FEMA grants to administer, train, and equip the task force for urban search and rescue operations, and develop ground transport capability. The 2014 budget includes $1,647,018 of appropriations in this fund to complete the awarded grants. The District anticipates future grants will be awarded to continue administration of CO-TF1.
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Budget Message
The Training Center internal service fund presents a budget for appropriations in the amount of $1,818,833 and is funded by training revenue from both the District and outside agencies. The Training Center is anticipates revenue of $300,000 from other fire district for training purposes. District training revenue account for approximately 46% of revenue; outside agencies and education programs comprise the balance of the revenue streams. The District is currently minimally funding depreciation of this resource. Closing Comments: Many of the goals and critical issues that West Metro Fire Protection District identified in the 2013 budget have been addressed and accomplished. The District continues to implement strategic plans aligned with accreditation and minimize the impact of financial distress on the fund balance. While the District is utilizing fund balance (reserves) for this operating year, the District has decreased their use from $1,823,000 in 2013 to $616,169. This is a direct result of implementation of cost cutting measures and decision to defer for one year the funding of the Apparatus Replacement Fund. In reviewing the fund balance and to ensure the District’s financial sustainability, District command staff, the board of directors and union officials will collaborate in reduction of service levels with all efforts made at minimizing the impact to the citizens of the District. Thank you to the citizens of the District for their support in accomplishing these goals to help ensure the safety of the District and the firefighters that respond to emergencies during the year. Sincerely,
Don Lombardi Fire Chief
Linda J. Gregory, CPA Finance Manager
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Budget Process
The budget process for West Metro Fire Protection District establishes standard procedures for preparing, presenting and administering the budget. Additionally, it requires involvement in the preparation of the budget by the District employees, the District board members and ultimately, the District citizens through disclosure of the budget before its formal adoption.
A budget is a financial plan for one or more fiscal years. The budget authorizes the local government to spend money and limits how much money can be spent. The budget also justifies the levy of property taxes. Budget preparation allows the District to plan and set goals by assessing and prioritizing needs in relation to projected money available in the current and future years.
As part of the budget process each year, the District updates the five-year financial forecast to identify critical issues and set preliminary goals. The budget serves as the financial road map necessary to ensure the District accomplishes the strategic priorities outlined within the budget document. All budgeted items are appropriated by fund per State of Colorado Budget Law.
The Finance Manager serves as the Budget Officer. West Metro Fire Protection District posts budget instructions and timelines for preliminary budget submittals on the District’s intranet. Budget templates and prior and current year expenditures are made available for each fund and division. All line items for each department are reevaluated annually and all budgets are prepared from a zero based budget philosophy, meaning that all line items should be justified. Submission of preliminary budgets to the Finance Manager and the Deputy Chief of Administration is made by August 7th. Preliminary assessed valuations are received from Douglas and Jefferson Counties by August 25th. Tax revenues are then determined and the process of matching revenues with expenditures begins.
The Fire Chief, the Finance Manager, and the Deputy Chief of Administration review preliminary budgets and schedule internal budget hearings as necessary with Line Chiefs, Division Chiefs and others to insure budget expenditures assist in accomplishing District goals and strategic priorities. Final budgets submittals are due by September 7th, if changes were necessary. The Finance Manager compiles all budgets, with the Fire Chief, Deputy Chief of Administration, with members of the Board reviewing the budget document in its entirety. As part of this review, the fiveyear financial plan is updated. The District mandates a balanced budget be presented. A balanced budget requires available revenues equal or exceed expenditures, including carry over cash balances.
The proposed budget is submitted to the Board of Directors on October 15th for their consideration. Approval of the budget document authorizes the District to post a notice in the local newspaper of the public budget hearing held before the Board of Directors to consider the budget as approved. The public hearing is set for November 19th. The budget document is made available during regular business hours at the District business office for public inspection.
The Board of Directors adopts the approved budget in the form of a resolution, which also appropriates, imposes and categorizes taxes. Final assessed valuation numbers are received from the counties on December 3rd, with the requirement that mill levies be certified to the counties by December 15th. 36
Budget Calendar
Date
Action
July 12, 2013
Budget Instructions to Division and Departments
August 7, 2013
Preliminary Budget Submittal
September 6, 2013
Review by Fire Chief, DC of Administration and Finance Manager
September 16, 2013 Internal Budget Hearing Completed September 16, 2013 Final Budget Submittals Due October 15, 2013
Proposed 2012 Budget Submitted to Board of Directors
November 19, 2013 Public Hearing December 3, 2013
Adoption of Budget by Board of Directors
December 15, 2013
CertiďŹ cation of Mill Levy 37
Budget/Financial Policies
West Metro Fire Protection District operates under Colorado State Statutes as a quasi-municipal government. The District provides the citizens within its boundaries with emergency medical services (EMS), fire prevention, fire suppression, public education and specialized teams that support rescue in various situations. The District maintains individuals specifically qualified in hazardous material, technical rescue, dive teams, and wildland fire. The District is also the sponsoring agency for Colorado Task Force 1 (CO-TF1).
The 2014 budget has been prepared after analyzing requests from all divisions and departments for financial support to ensure the operations of the District. Departments and stations were requested to provide budgets that detailed items necessary for continued operations at the present level, and requests for enhancements to the department and stations.
Included in this budget presentation is the Board of Directors’ resolution adopting the budget, authorizing appropriation for each fund and setting the mill levy. The appropriated budget is prepared by fund, function, department, and object code. Transfers of appropriations within and between departments require approval of the Chief of the Department. The Board of Directors must approve any revision that alters the total appropriation provided in this report for each individual fund for which an appropriated annual budget has been adopted. The District manages its finances according to generally accepted accounting principles (GAAP). During the year, financial statements are prepared and distributed to department managers and the Board of Directors. These statements provide monthly comparisons of expenditures to budget. Annually an audit is performed and filed with the State of Colorado. Fund Accounting The District demonstrates legal compliance by segregating transactions related to certain functions through the use of fund accounting and reporting its financial position and results of operations in separate funds. A fund is a separate accounting entity with a self-balancing set of accounts that reports its assets, liabilities, reserves, fund equity, revenues and expenditures. All of the funds of the West Metro Fire Protection District can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. While the Comprehensive Annual Financial Report (CAFR) provides information on fiduciary funds, the District does not provide budgets for these funds. Additionally, agency funds provided in the District’s CAFR are not budgeted or appropriated in the 2013 budget.
Governmental funds are used to account for tax-supported activities. Fiduciary funds are resources held by the government as a trustee and cannot be used to support the government’s own programs.
The District maintains and appropriates annually for the general fund, the general obligation debt construction fund, the debt service funds, the general obligation bond debt service fund, the capital projects fund and the CO-TF1 special revenue fund and all internal service funds.
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Budget/Financial Policies
Basis of Accounting and Budgeting Governmental fund types are budgeted and accounted for on the modified accrual basis of accounting whereby revenues are recorded in the accounting period to which they become measurable and available. Expenditures are recorded at the time goods and services are actually received, rather than when the invoices are paid. Exceptions to this is interest in long-term debt, which is recognized when due. Revenue Projections The District receives approximately 78% of its general fund revenue from property taxes and approximately 77% of all governmental fund revenue from property taxes derived from the mill levy and the general obligation bond mill levy. Revenue received from fees charged for emergency medical service transport account for approximately 13% of general fund revenues. These charges are fees for service and are based on classification of services as either basic life support or advanced life support. Mileage is also calculated in the fees for ambulance transport.
The District has historically taken a conservative approach to budgeting revenue and fees to minimize the possibility that economic fluctuations could imperil ongoing service programs during the year. Therefore, this budget as presented maintains effective District operations within the existing financial capabilities of the District with our operating mill levy set as 12.382 mills. Fund Balances As a policy, the District will maintain an Emergency Reserve estimated at 3% of general fund revenues under the Colorado State Constitution, Article X Section 20 (TABOR). The Board has also implemented a policy to reserve fund balances for multi-year obligations approved by the Board of Directors. The District also recognizes that ending fund balance must be sufficient to cover the District’s operating expenses until property taxes are received from each county treasurer. Therefore, the District has designated 18% of anticipated general fund revenues, with 15% to be maintained for current year anticipated cash flow as assigned fund balance and 5% committed within the fund balance for stabilization reserves for unanticipated emergencies a well as increases in cost.
Debt Administration Currently the District has General Obligation Debt issued in 2007 and 2013, the latter for bond refunding. The prior debt refunding and the 2007 debt was for the construction of a Training Center and construction and renovations on existing stations. Annually, current year general obligation debt is calculated for principal and interest with General Obligation Bond and Interest mill levy rates set and appropriated. The District has projected the 2013 GO mill levy at .526 mills on assessed value of $2,867,110,236. Cash Management Property taxes collected by Jefferson County and Douglas County are deposited into the West Metro Fire Protection District’s Wells Fargo money market account. Investment income derived from the investment account is allocated to the contributing funds based on the proportion of their respective average balances relative to the total balance. Investment objectives of the District emphasize the preservation of capital and protection of investment principal.
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Budget/Financial Policies
Capital Expenditures The District maintains the policy recommended by the Government Finance Officer’s Association that recommends a threshold of $5,000 for capitalization of assets. In the budget year, these “fixed assets” are shown in the budget as Capital Expenditures and Capital Improvements in the Capital Outlay area. Additionally, the District maintains the Capital Projects Fund and the GO Construction Fund to account for capital expenditures associated with large projects. Assets are depreciated utilizing the straight-line half-year convention method and based on the useful life of the asset.
The District uses the following lives for fixed assets: Land Buildings Fire Apparatus Ambulances Staff Vehicles Equipment
Non-Depreciable 30 Years 15 Years 7 Years 7 years 5 Years
Summary of Policies 1. The District will budget revenues in a conservative manner, based on historical trends, economic conditions and projections that are realistic.
2. The District will maintain a balanced budget where expenditures do not exceed revenue and fund balance. One time revenues will not be utilized to pay on-going expenses.
3. The District will maintain assigned fund balance necessary to meet cash flow requirements for the first few months of the following year.
4. The District will budget for debt service payments and certify the mill levy for the general obligation debt. 5. The District will continue to budget transfers from the General Fund to the Apparatus Replacement Fund through the use of rental charges with Investments with the goal of maintaining a minimum balance of $6,000,000.
6. The District will invest available funds in a local government investment pool or other investments as authorized by the Board of Directors.
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Strategic Plan
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Strategic Plan
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Strategic Plan
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Strategic Plan
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Strategic Plan
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Strategic Plan
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Strategic Plan
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Strategic Plan
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Strategic Plan
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Strategic Plan
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Strategic Plan
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Strategic Plan
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Strategic Plan
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Strategic Plan
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2014 Budget Tax Summary
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Summary of Financial Sources & Uses
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General Fund
Description Budget Tax Summary General Fund Budget Summary Fund Balances General Fund by Object Code
General Fund The General Fund is used to account for all activities of the District that are not budgeted for in other funds. Primary among these activities is the recording of District revenue through property tax levies, EMS medical billing revenues, permits and contracts. Expenditures within this budget consist of administrative, operations, and life safety.
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Budget Tax Summary
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General Fund
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General Fund
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General Fund
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General Fund
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Administration Division
DeďŹ nitions & Divisions Cost Center Summary of Administrative Division by Object Code General Administration Budget Budgets by Division
Administration Division The Administration Division of the General Fund accounts for the salaries of personnel, civilian and uniformed that are assigned to administrative work for the District. Within the administration division are various cost centers that expend in accordance with speciďŹ c objectives. Following is the list of operation divisions and their descriptions:
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Administration Division
10-01-00 Administration: This department is comprised of costs that were previously included in the Chief’s department. This cost center includes the office of the Deputy Chief of Administration. Administrative costs, including general liability insurance, county treasurer fees, and various office costs that benefit the entire District are assigned to this budgetary department.
10-01-60 Chief’s Office: The Chief of the District and administrative staff are charged to this cost center. Included in the Chief’s office are education, travel and miscellaneous expenditures for the Fire Chief and his staff.
10-01-61 Awards Committee: The Awards Committee is responsible for the recognition of both member of West Metro Fire Rescue and members of the community for outstanding accomplishments and acts beyond the call of duty. The committee meets throughout the year to process the awards and recognitions. 10-01-62 Board of Directors: The District operates under a publicly elected Board of Directors. The board is responsible for, among other things, policymaking, adopting the budget, appointing committees, managing long-range planning and hiring the Fire Chief. The District is divided into seven director districts, with directors elected on a non-partisan basis to four –year staggered terms. The board meets on the first and third Tuesdays of each month. 10-01-64 Honor Guard: The Honor Guard provides escorts and post of colors at various functions when requested, as well as maintains Fire Service traditions and dignity at department functions.
10-01-65 Finance: The Finance Division provides financial accounting, payroll, budgeting and reporting services. Additionally, treasury and investment management as well as debt issues are the responsibility of this department. Finance is committed to providing and improving all financial services performed for the District and other organizations.
10-01-66 EMS Billing and Collections: The EMS Billing and Collection department bills WMFR ambulance patients and their insurance providers for transports to local hospitals. This department’s goal is to maintain a high collection percentage while being helpful to citizens in the District. EMS transports are based on a fee for service and are not considered in the basis of the mill levy calculation for fire suppression services.
84
Administration Division
10-01-69 Human Resources: Human Resources provide several services to the District. This department completes and coordinates the in and out processes for both the civilian and uniform personnel. Human Resources also assist Civil Service, Joint Apprenticeship Council., WMFR Health Trust and various pension boards. It is the mission of the Human Resources department to provide professional, quality support and guidance that will enable all members to better serve the citizens.
10-01-70 Apprentice: Under the guidance of the United States Department of Labor, WMFR recognized fire/medic apprentice standards. The mission of the WMFR Joint Apprenticeship and Training Committee is to be in charge of the recruitment and testing of prospective firefighters for the department and then provide continual oversight of the apprentice fire/medics throughout their three year apprenticeship. 10-01-71 Civil Service: This committee of five community members is appointed by the District’s Board of Directors. They direct the promotional exam process utilized in the selection of Lieutenants, Captains, and Assistant Chiefs.
10-01-72 Schools: The District affords the opportunity for all of its employees to pursue a formal education through a tuition assistance program administered through the Training Division. This program will reimburse half of the incurred costs after successful completion of approved courses.
10-01-73 Information Technologies: Information Technologies is responsible for the District’s computer networks and phone systems. The Division is comprised of four civilian positions tasked with providing technological solutions and support to our Current WMFR employees and their guests. The team’s pride is in providing quality value engineering solutions that exceed the needs of the District. 10-01-99 Benefit Allocation: Benefits are paid by this budgetary department and are allocated to all cost centers with full time equivalents. Allocations are based on compensation, headcounts, volunteers, and other appropriate methods.
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Administration Division
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Administration Division
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Administration Division
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Administration Division
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Administration Division
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Administration Division
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Administration Division
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Administration Division
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Operations Division
DeďŹ nitions & Divisions Cost Center Summary of Operations by Object Code Operations Budget Budgets by Division
Operations Division
The Operations Division accounts for the salaries of uniformed personnel assigned to all line resources. Within the operations division are various cost centers that expend in accordance with specific objectives. Following is the list of operation divisions and their descriptions:
10-02-20 Operations: The Operations cost center includes salaries and benefit cost of all uniform personnel assigned to line resources available for response to the request for assistance, fire and emergency services, from taxpayers within our District and also response to mutual aid requests from neighboring departments. Therefore, salary and benefit costs have not been recorded in station budgets and the EMS cost center does not include wages for ambulance staffing. This department does include the Deputy Chief of Operations and administrative support for this office. The Operations Division oversees the day-to-day delivery of emergency responses. All apparatus replacement and maintenance internal service funds costs are charged to operations.
10-02-21 Staffing: The Staffing Captain is responsible for the administration and staffing of line operations and call back to maintain minimum staffing levels as mandated by department policies. Included in these functions are the maintenance of Telestaff software, implementation of program upgrades and the management of vacation allocations within Telestaff. 10-02-22 Volunteer: Most of the department volunteers operate out of Station 15 in Douglas County. 10-02-30 Special Operations: The costs associated with the Special Operations Division Chief’s office are reported in this department. Various special operations functions are now managed by line assistant chiefs. This Division Chief’s responsibilities are presently focused on emergency medical service (EMS) and the associated costs since 2006 have been budgeted in 02-31 EMS. 10-02-31 EMS: The Emergency Medical Services (EMS) division manages the EMS day to day operations, special events, and paramedic training. All Supplies and equipment for the ambulances are procured through this budget. Ambulance personnel costs are budgeted in the operations division. The EMS Division is committed to a quality of care and compassion towards the patient that is benchmarked against the best fire-based EMS providers.
10-02-32 Safety: The Safety Division is responsible for the overall health and safety of our employees. The Division consists of the Training Chief, the Safety Captain with Coordination of the Wellness Manager and an EMS/Health Specialist. Their mission is to promote health and safety and to achieve the Department’s goal of reducing overall injuries, accidents and blood borne exposures involving employees. Firefighter safety and survival is a priority of West Metro Fire Rescue. 115
Operations Division
10-02-33 Hazardous Materials: The Hazardous Materials Team responds to incidents when a release of hazardous substances has occurred. This includes fuel, chemical spills, and nuclear releases. This team works as a part of the Adams/Jeffco Haz-Mat Authority. All members are trained to the Haz-Mat Technical level.
10-02-34 Technical Rescue: The Technical Rescue Team provides the expertise needed when a threat of building collapse or the need for extrication exists at the scene of an automobile crash. The individuals on this team are specially trained to perform high and low angle rope rescues of unprepared hikers and climbers. The team ensures all firefighters possess the necessary skills to respond appropriately to such situations. Many of the personnel belong to FEMA’s Colorado Urban Search and Rescue Team.
10-02-35 Wildland: Urban interface lands or areas that are highly susceptible to the dangers of wildfire cover nearly 40% of the District. This team supplies the critical expertise to help control these fires by providing all firefighters with wild land fighting training. The team remains available to state and federal forest services to help with large wildland and forest fires in other parts of the county.
10-02-36 Dive Team: The Dive Team provides surface and underwater rescue, search and support capabilities both to the District and mutual aid agencies. The team is able to operate autonomously or in conjunction with other departments to accomplish this mission. Together with Westminster Fire, South Metro Fire and the Thornton’s police and fire departments, they form the Metro Dive Team (MDT), a mutually supportive entity that allows for the ability to train and operate on a common platform. The Dive team is housed at Station 10. 10-02-37 TEMS: The Tactical Emergency Medical Services, (TEMS) team provides EMS for the Lakewood Police Department SWAT team as part of an intergovernmental agreement. Members of our team learn police SWAT tactics and are integrated into their entry team, as well as provide them with medical care and knowledge during regular monthly training. The team responds with them on various types of call outs including barricade subjects, hostage situations and any other police/EMS scenario.
10-02-39 Emergency Fire Fund: The Emergency Fire Fund ;(EFF) is charged with the cost of wild land deployments outside the District or responses under mutual aid agreements. The District has an agreement with the State of Colorado to provide resources and wildland firefighters when requested by FEMA. This agreement provides the District reasonable reimbursements for these resources. Cost in this department is rarely budgeted as the District does not have any guarantee of deployment on an annual basis. However, actual costs are reimbursed and are recorded as additional EFF revenues in the General Fund. 116
Operations Division
10-02-40 Apparatus and Equipment Committee: This committee researches and makes recommendations on various equipment and apparatus needs of the department.
10-02-41 Equipment/Apparatus: This department procures safety equipment including bunkers for firefighters.
10-02-42 SCBA: The Self Contained Breathing Apparatus (SCBA) department repairs and maintains the department’s SCBA equipment. The SCBA tech works out of the same facility housing the District Two Assistant Chief. The District entered into a contractual arrangement with a vendor to provide these services.
10-02-43 Fire Hose: The Hose Division is responsible to evaluate, test, purchase, repair and maintain hose and related supplies for West Metro Fire Rescue. Maintenance of hoses, couplers and repair is an ongoing process.
10-02-44 Ladder: The Ladder Division is responsible for the testing, maintenance, and purchasing of all West Metro fire service ground ladders. As of 2010, the ladder division is also responsible for the care of ladders at the new Training Center. This work is done at the Fleet Maintenance Facility. The ladder division takes responsibility of the new apparatus ladders from the time of delivery of the new equipment throughout the life of the ladder or as long as West Metro Fire Rescue owns the equipment.
10-02-45 Bunker Washer: Two stations provide the advanced bunker gear cleaning for the District. For safety reasons, bunkers need to be washed to remove smoke and other contaminants when they have been exposed. This also helps the department maintain a professional appearance.
10-02-47 Communications: West Metro Fire’s Dispatch Center handles all responses for the District as well as response for other fire protection districts. The Communications Division is responsible for five main areas of operation as reflected by this budget. These areas consist of radio communication systems (the radio “backbone” and subscriber equipment, CAD/Mobile CADE software functionality, cellular and paging, station alerting and dispatch operations. 10-02-49 Accreditation: Accreditation is a self-assessment process to provide quality improvement and enhance the service delivery to the community. Accreditation is through an outside independent agency; this budget covers two parts of accreditation, self-assessment and standards of coverage. Expenditures include site visit costs. 117
Operations Division
10-02-50 Training: The Training Division is responsible for the training and professional career development of all uniform members at West Metro Fire Rescue. 10-02-52 3301 S Field Street: Costs associated with this are presented separate from the Training Center.
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Stations & their Budgets
DeďŹ nitions Total Station by Object Account Station Budgets Training Center Old Station 8
Stations & their Budgets Station budgets are managed by station captains and do not include salary or beneďŹ ts, but all items necessary for the ongoing maintenance, utilities and equipment. Salaries and beneďŹ ts are budgeted within operations in the Operations Division. Included in maintenance costs for the stations are items involving sand trap cleaning, HVAC maintenance, plymovent system maintenance, blackow testing, telemetry testing, geothermal maintenance, bay door maintenance, etc. Stations work with the District in scheduling needed maintenance and maintenance contracts exist to promote cost savings District-wide.
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Stations & their Budgets
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Station One
165
Station Two
166
Station Three
167
Station Four
168
Station Five
169
Station Six
170
Station Seven
171
Station Eight
172
Station Nine
173
Station Ten
174
Station Eleven
175
Station Twelve
176
Station Thirteen
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Station Fourteen
178
Station Fifteen
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3535 South Kipling Street
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Old Station Eight
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Life Safety Division
DeďŹ nition Budget Summary by Cost Center Budget Summary Budget by Object Code Budget Summary with Personnel Summary Life Safety Budget Investigations Budget Summary Investigations Budget
Life Safety Division The Life Safety Division is comprised of the Life Safety division tasked with reducing property damage, injury, and loss of life due to fire. This division oversees inspections of buildings and businesses to check for compliance with safety standards. Building permits are issued after the appropriate plan review has been completed by uniform officers working in the bureau. Fire systems are inspected annually, and other permits are issued to include hazardous materials permits and firework tent sales.
The Investigations division is a team of uniform officers charged with investigating all fires within the District. The mission of the Fire Investigations Division includes proper examination of the fire or explosion scene, successful prosecution of offenders, and intervention in connection with juvenile fire setter education.
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Life Safety Division
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Life Safety Division
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Grant Information
DeďŹ nition Budget Summary
Grant Information The District maintains reporting for grants in this section. Grant requests here represent the eorts of the individuals in community education. The District does not budget for grant revenue in advance, but reports the outcome of grant revenue and spending in this area. Outreach and associated costs are budgeted within the Training Center however old grants are reported in the general fund.
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Grant Information
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Grant Information
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General Obligation Debt Service Fund
DeďŹ nition Budget Summary Budget Tax Summary General Obligation Bond Debt Service
General Obligation Debt Service Fund The General Obligation Bond Debt Service Fund is used to account for the collection of taxes and payment of principal and interest for the general obligation debt. The District currently has two series outstanding, the 2007 and the 2013 bond refunding series. The bond refunding replaces the 2006A and 2006B series. Coupon amounts vary as shown in the bond debt service schedules and interest is paid semi-annually, with principal paid annually.
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General Obligation Debt Service Fund
197
General Obligation Debt Service Fund
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General Obligation Debt Service Fund
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General Obligation & Capital Projects Funds
DeďŹ nition Budget Summary General Obligation Capital Projects Fund
General Obligation & Capital Projects Funds The Capital Projects Fund accounts for financial resources collected and used for the acquisition of major capital needs, to include both equipment and capital facilities.
The General Obligation Capital Projects Fund accounts for financial resources collected and used for the acquisition or construction of major capital facilities financed with general obligation bond proceeds.
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General Obligation & Capital Projects Funds
202
General Obligation & Capital Projects Funds
203
Colorado-Task Force 1 Special Revenue Fund
DeďŹ nition Summary by Object Code Cooperative Agreement 2011 Cooperative Agreement 2012 Cooperative Agreement 2013 Cooperative Agreement 2014 Lower North Fork Hurricane Sandy North Central Region Oklahoma Tornadoes
CO-TF1 Special Revenue Fund The Colorado Task Force One (COTF1) Special Revenue Fund is used to account for the actives of the Colorado Task Force that are reimbursed through the Department of Homeland Security Federal Emergency Management Administration (FEMA Grants).
The FEMA grants are utilized for training purposes and grants are awarded on a ďŹ scal year basis. FEMA cooperative grants are reported in this budget based on calendar year use. The District is the sponsoring agency for the CO-TF1 program and maintains MOA’s with participating agencies. Costs related to actual responses are covered under separate grants if the task force is deployed.
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CO-TF1 Special Revenue Fund
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CO-TF1 Special Revenue Fund
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CO-TF1 Special Revenue Fund
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CO-TF1 Special Revenue Fund
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CO-TF1 Special Revenue Fund
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CO-TF1 Special Revenue Fund
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CO-TF1 Special Revenue Fund
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CO-TF1 Special Revenue Fund
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CO-TF1 Special Revenue Fund
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CO-TF1 Special Revenue Fund
2014 Budget CO-TF1 02-24 Oklahoma Tornadoes BUDGET SUMMARY
DESCRIPTION
History 2011 2012 Actual Actual
Revenues/Resources FEMA US&R Cooperative Grant Deployment Total Revenues/ Resources
-
DESCRIPTION
December 2013 Projected
Proposed 2014 Budget
8,185 8,185
8,185 8,185
Proposed
-
History Account
Adopted August 2013 2013 Budget Actual
Adopted
August
December
2011
2012
2013
2013
2013
2014
Actual
Actual
Budget
Actual
Projected
Budget
2,368
2,368
2,368
2,368
3,713
3,713
PERSONNEL AND BENEFITS 5110 5120 5150 5180 5190 5610 5620 5630 5999
Salaries Extra Duty Holiday Pay Sick Leave Sold Vacation Sold Training and Education Testing Health Evaluations Benefit Allocation Total Personnel and Benefits
-
-
-
-
MATERIALS AND SERVICES 5640 6120 6130 6320 6330 6410 7110 7210 7220 7230 7240 8190 8210
Travel General Supplies Printing Legal Fees Contract Labor General Liability Insurance Telephone Maintenance- Bldg Maintenance Equipment New Equipment - Stations Rental Expense New Equipment - Apparatus Fuel Total Materials and Services
-
-
-
3,713
3,713
-
Capital Improvements Capital Expenditures Internal Service Funds for Fleet/Rental/Training Total Capital Outlay
-
-
-
-
-
-
TOTAL EXPENDITURES
-
-
-
6,081
6,081
-
CAPITAL OUTLAY 9210 9220 9230
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Fleet Maintenance
Description Internal Service Fund
Fleet Maintenance The Fleet Maintenance Internal Service Fund was established in 2006 to focus on the fleet maintenance operation utilizing business type accounting and practices. This operation funds itself through user charges to various divisions of the fire department and outside agencies. The District’s vehicle maintenance facility provides for the maintenance of the District’s trucks, ambulances and staff cars to assure a safe and dependable operation for the safety of the members of the organization as well as the citizens.
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Fleet Maintenance
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Fleet Maintenance
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Apparatus/Vehicle Replacement Internal Service Fund
DeďŹ nition Budget Summary Replacement Schedule
Apparatus/Vehicle Replacement Internal Service Fund The District maintains an apparatus and Vehicle Replacement Internal Service Fund that was established in 1996 as a commitment by the District to fund the apparatus and other vehicle replacement program through user charges to various division of the ďŹ re department.
In recent years the District has funded $650,000 to $900,000 annually, through the generation of user charges by the District. Investment income is annually credited to this fund. Depreciation reduces the net asset balance.
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Apparatus/Vehicle Replacement Internal Service Fund
222
Apparatus/Vehicle Replacement Internal Service Fund
223
Training Center Internal Service Fund
DeďŹ nition Budget Summary
Training Center Internal Service Fund The Training Center Fund was established in 2011 to provide a facility for District and outside agencies to utilize in an Academy and training environment. Fees charged for usage of the facility help defray the cost of training to West Metro Fire Rescue.
Training Center revenue is projected for community education as well as rental income from the District, COTF1 and outside agencies. The 2014 budget reects a budget that will provide planned classes that include a Technical Rescue School, a Structural Collapse Tech Class, the Red Rocks Academy and community education to include the annual Family Fire Muster.
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Training Center Internal Service Fund
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Training Center Internal Service Fund
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Glossary of Terms
The Annual Budget contains specialized and technical terminology that is unique to public finance and budgeting. To assist the reader in understanding these terms, a budget glossary and list of acronyms have been included.
Accrual Basis of Accounting The method of accounting under which revenues are recorded when they are earned (whether or not the cash is received at that time) and expenditures are recorded when goods and services are received (whether cash disbursements are made at that time or not). Account A term used to identify an individual asset, liability, expenditure control, and revenue control or fund balance. Administrative Department responsible for the performance of executive duties; management.
Appropriation An act by a legislative body authorizing the expenditure of a designated amount of funds or to incur obligations for specific purposes.
Assessed Valuation The total taxable value placed on real estate or other property as a basis for levying taxes. Assets Property owned by the District that has monetary value.
Audit A comprehensive investigation of the manner in which the government’s resources were actually utilized. A financial audit is a review of the accounting system and financial information to determine how government funds were spent and whether expenditures were in compliance with the legislative body’s appropriations. Board of Directors (BOD) Elected body of officials that governs the District.
Bond A written promise to pay a sum of money on a specific date at a specified interest rate. The interest payments and the repayment of principal are detailed in a bond ordinance. The most common types of bonds are general obligation and revenue bonds. These are most frequently used for construction of large projects, such as buildings, streets, and bridges.
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Glossary of Terms
Budget A plan of financial operation embodying an estimate of proposed expenditures for a given period (typically a fiscal year) and the proposed means of financing them (revenue estimates) for the same fiscal year.
Budget Document The official published statement prepared by the Finance Department that includes all budget information as approved by the Board of Directors. The instrument used by a budget-making authority to present a comprehensive financial program to the appropriating body. Budget Basis of Accounting The basis of accounting used to prepare the budget. At West Metro Fire, this basis differs from a GAAP basis in Enterprise funds, primarily how capital expenditures and depreciation are budgeted.
Budget Message A general discussion of the proposed budget as presented in writing by the budget officer to the legislative body. Budgetary Control The control or management of a governmental unit or enterprise in accordance with approved budget for the purpose of keeping expenditures within the limitation of available appropriations and available revenues. Capital Outlays Expenditures for the acquisition of capital assets.
Chart of Accounts The classification system used by the District to organize the accounting for various funds. Contingency Account The budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted for.
Current Liabilities Liabilities which are payable within a relatively short period of time, usually no longer than a year.
Current Taxes Taxes levied and becoming due during the current fiscal period, from the time the amount of the tax levy is first established to the date on which a penalty. 229
Glossary of Terms
Debt An obligation or liability resulting fro the borrowing of money or from the purchase of goods and services. Debt Limit The maximum amount of gross or net debt that is legally permitted.
Debt Service Funds Debt Service Funds are established to account for the transfers of resources from other governmental type funds for the payment of principal and interest of general long-term debt requiring the maintenance of a debt service fund.
Depreciation Expiration in service life of fixed assets attributable to wear and tear through use and lapse of time, obsolescence, inadequacy, or other physical or functional cause. Emergency Reserves As defined in Colorado State Statutes in Article X, Section 20, “to use for declared emergencies only, each district shall reserve 3% or more of its fiscal year spending excluding bond debt service.
Encumbrance The commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for a future expenditure.
Expenses Charges incurred, whether paid or unpaid, for operation, maintenance, and interest, and other charges, which are to benefit the current fiscal period.
Fair Labor Standards Act (FLSA) Established minimum wage, overtime pay, record keeping requirements and child labor standards for full-time and part-time workers.
Fiscal Year (FY) The time period used for the accounting year. The District’s fiscal year begins January 1st and ends on December 31st. Fixed Assets (FA) Tangible or intangible items purchased that or over $5,000 and have a useful life or more than one year.
Full Time Equivalent (FTE) Staffing levels are measured in FTEs to give a consistent comparison from year to year. 230
Glossary of Terms
Fund A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities that are segregated for the purpose of carrying on specific activities. Eight commonly used funds in public accounting are: general funds, special revenue fund, debt service funds, capital projects funds, enterprise funds, trust and agency funds, internal service funds, and special assessment funds. Fund Balance The difference between assets and liabilities reported in a governmental fund.
Generally Accepting Accounting Principles (GAAP) The conventions, rules, and procedures that serve as the norm for the fair presentation of financial statements.
General Long-Term Debt Debt legally payable from general revenues and backed by the full faith and credit of the District. Government Finance Officers Association (GFOA) Organization offering support and a high level of training opportunities for government finance officers.
Gross Bonded Debt The total amount of direct debt of the District represented by outstanding bonds. Long Term Disability (LTD) Injury or illness resulting in time loss from work in excess of 90 days.
Major Fund A governmental fund reported as a separate column in the basic fund financial statements. The general fund is always a major fund. Otherwise, major funds are funds whose revenues or expenditures are at least ten percent of the total budget. Any other government fund may be reported as a major fund, if that fund is particularly important to the financial statements.
Modified Accrual Basis A basis of accounting in which expenditures are accrued but revenues are accounted for on a cash basis. This accounting technique is a combination of cash and accrual accounting since expenditures are immediately incurred as a liability while revenues are not recorded until they are actually received or are “measurable” and “available for expenditure.” Since this type of accounting basis is a conservative financial approach, it is recommended as the standard for most governmental funds. 231
Glossary of Terms
Operating Budget The portion of the budget that pertains to daily operations that provides basic governmental services. The operating budget contains appropriations for such expenditures as personnel, materials and supplies, fixed assets and debt service. Net Bonded Debt Gross bonded debt less any cash or other assets set aside for its retirement. Object Classification A grouping of expenditures on the basis of good or services purchases.
Operating Statement A document summarizing the financial operations of the District for a specific accounting period. Performance Measures Specific quantitative measures of work performed within an activity or program.
Prior Year Tax Levies Taxes levied for the fiscal periods preceding the current one.
Property Taxes Mandatory tax charged for the purpose of financing emergency services provided to District residents for their protection and assistance. Resources The actual assets of the District, such as cash, taxes receivable, land, buildings, etc.
Revenue Funds that the government receives as income. It includes such items as tax payments, fees from specific services, receipts from other governments, grants, shared revenues and interest income.
Special Revenue Fund Funds that are established to account for the proceeds of specific revenue sources (other than special assessments, pension trusts, proprietary fund operations and revenues received for major capital projects) that are legally restricted for specific purposes.
Supplemental Budget The process that modifies the adopted budget during a fiscal year. Typically, supplemental budgets are used to create new appropriations to spend increased resources. Tax Base In Colorado, a designated amount of property tax that can be levied for operating expenses without annual voter approval. 232
Glossary of Terms
Tax Levy The total amount to be raised by general property taxes.
Tax Rate The amount of tax levied for each $1,000 of assessed property value
Unappropriated Ending Fund Balance A fund balance at the close of the preceding ďŹ scal year that is not included in the current budget.
Photo credits: 5280ďŹ re.com; FF/P Don Braning; Mark Nava; Michelle S. French
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