Wake County Fire Tax District FY 21 County Recommended Budget
FY 2021 Budget Development Calendar • January 24 : Budget Submittal Deadline • February 3-12: Department Meetings • Week of February 17: Budgets Shared with Sub Committees • March 2: Budget Request Shared with Budget Committee • March 9: Budget Committee Recommended Budget • COVID -19 Starts to drastically affect Wake County • March 26: Staff Presents new recommended Budget to Budget Committee • March 31 : Budget Presentation to County Manager (Cancelled) • April 28: Fire Commission Meeting to discuss Budget Meeting schedule from March 9 and out changed drastically based on COVID19 2
FY 21 Guidance, Drivers and Considerations • Historical trends • FY 20 projections • Reval Impacts • FY 21 revenue outlook • Structural Imbalance • Long range planning underway • COVID-19 Economic Impacts 3
Wake County Fire Tax District FY21 Cost Share Percentage Updates Department FY20 Cost Share FY21 Cost Share Change Apex 18.09% 16.86% -1.23% Fuquay Varina 45.48% 44.05% -1.43% Garner 47.37% 46.05% -1.32% Holly Springs 17.71% 17.44% -0.27% Morrisville 16.70% 16.14% -0.56% Rolesville 52.01% 48.51% -3.50% Wake Forest 23.11% 23.48% 0.37% Zebulon 41.50% 40.74% -0.76% 4
FY 2021 Budget Development – What is Different This year • COVID 19 Timing – Restrictions and timing did not allow us the opportunity to reconvene each committee to provide input based on the economic downturn as a result of Stay at Home orders • Budget Committee and County have different FY21 Budget recommendations • Due to ongoing COVID19 Operations and Social Distancing Restrictions, the meeting between the Budget Committee and County Manager did not occur • First ever Virtual Meeting of the Fire Commission 5
Historical Trends 6
Revenues are growing (1% avg increase) $30.0M 20.0% $26.8M $26.8M $26.6M $26.3M $25.9M $25.0M 15.0% $21.8M $21.3M $20.0M 10.0% $15.0M 5.0% $10.0M 0.0% $5.0M $.0M -5.0% 2015 2016* 2017** 2018 2019 FY 20 Budget 2020 Projection Revenues $21.3M $21.8M $25.9M $26.3M $26.6M $26.8M $26.8M % Changes -1.0% 2.5% 18.6% 1.7% 1.2% 0.6% 0.7% *FY 2016 included one-time transfer of $2.5 million to the Capital Fund **FY 2017 included 1.48 cent tax increase
Expenditures are growing, too (3.3% avg. increase) $30.0M 18.0% $28.3M $28.1M $27.1M $26.3M $25.3M 16.0% $24.6M Percent Change from Prior Year $25.0M 14.0% $21.3M Total Expenditures $20.0M 12.0% 10.0% $15.0M 8.0% $10.0M 6.0% 4.0% $5.0M 2.0% $.0M 0.0% 2020 2015 2016* 2017** 2018 2019 FY 20 Budget Projection Expenditures $21.3M $24.6M $25.3M $26.3M $27.1M $28.3M $28.1M % Changes 3.0% 15.6% 3.0% 3.9% 3.1% 4.2% 3.5% *FY 2016 included one-time transfer of $2.5 million to the Capital Fund **FY 2017 included 1.48 cent tax increase
FY 20 & FY 21 Revenue Impacts Pre & Post COVID
Impacts of COVID on County Budget • Significant negative economic impacts expected similar to Great Recession • County is estimated a revenue loss of approximately $50 million in FY21 • County has already determined it will not be able to afford salary increases for County employees • County Departments have been directed to cut 1.5% from their remaining FY20 Budgets, and cut 7% of their FY21 base budgets; County Manager unlikely to propose tax increase for County General Fund; CIP projects are being deferred or reduced • These impacts have influenced the revised recommendation for the Fire Tax District. 10
Fire Tax District FY 2020 Revenues Fiscal Year Tax Rate Estimated Revenues FY 2020 Adopted Rate: 9.60 Cents $26,737,000 FY 2021 (pre-COVID) Revenue Neutral: 8.37 Cents $26,920,687 FY 2021 (post-COVID) Revenue Neutral: 8.34 Cents $26,721,780 Total Change from Adopted FY 2020 ($15,220) • Anticipated vehicle values left to bill have dropped from original projection • Projected Collection Percentage: 99%, decrease from 99.25% 11
Current year deficit now projected to be ($1,249,029) CURRENT YEAR PROJECTION FY 2018 FY 2019 FY 2020 FY 2020 FY 2020 FY 2020 Projected Above/(Below) Above/(Below) Actuals Actuals Adopted 3.25.20 Budget ($) Budget (%) Revenues Property Taxes 26,195,086 26,452,844 26,737,000 26,721,780 (15,220) -0.1% Interest Income 103,930 171,074 51,000 88,000 37,000 72.5% Total Revenues 26,299,016 26,623,918 26,788,000 26,809,780 21,780 0.1% - - Expenditures Debt Service 1,141,000 910,936 1,233,221 1,233,221 - 0.0% Capital 1,876,000 1,633,000 1,290,102 1,290,102 - 0.0% Department Appropriations 22,123,549 23,505,265 24,403,505 24,372,904 (30,601) -0.1% Systemwide Expenses 1,152,835 1,071,704 1,337,172 1,162,582 (174,590) -13.1% Total Expenditures 26,293,384 27,120,905 28,264,000 28,058,809 (205,191) -0.7% - Surplus/(Deficit) 5,632 (496,987) (1,476,000) (1,249,029) 226,971 -15.4% 12
Fire Tax District Reappraisal Update Fiscal Year Tax Rate Estimated Revenue FY 2020 Adopted Rate: 9.60 Cents $26,737,000 FY 2021 (pre-COVID) Revenue Neutral: 8.37 Cents $27,302,854 FY 2021 (post-COVID) Revenue Neutral: 8.34 Cents $27,123,178 Total Change from Adopted FY 2020 $386,178 • FY 2021 Assessed Valuation: $32.54 Billion (First fiscal year following 2020 revaluation) • Projected Collection Percentage: 98.75%, decrease from 99.25% • We are projected to collect less revenue in current year, which makes our use of fund balance in FY20 even greater • Projected collections in FY21 are also anticipated to be less, which will have an impact on our FY21 budgeted expenditures 13
Operating Recommendation Department Appropriations Systemwide Expenses 14
Operating - Differences Between Budget Committee Recommended and County Recommended • Removed 3% Merit for all Full-Time personnel • Removed Proposed Expansion of 3% Merit Increase for Part-Time Personnel • Removed Travel & Training Expansion Request from Northern Wake and Hopkins 15
100% Funded Departments Operating - County Recommended Increase / Increase / FY20 FY21 3.9.2020 FY21 County Department (Decrease) (Decrease) from Approved Recommended Recommended from 3.9.2020 FY 2020 Durham Highway $938,958 $950,978 $932,439 ($18,539) ($6,519) Eastern Wake $1,932,410 $2,024,487 $1,850,483 ($174,004) ($81,927) Fairview $1,774,821 $1,848,555 $1,814,774 ($33,781) $39,953 Hopkins $1,004,431 $1,065,426 $1,037,081 ($28,345) $32,650 Northern Wake $3,385,965 $3,607,308 $3,530,500 ($76,808) $144,535 Swift Creek $846,282 $863,050 $849,885 ($13,165) $3,603 Wake-New Hope $1,724,201 $1,816,617 $1,789,348 ($27,269) $65,147 Wendell $2,103,425 $2,737,124 $2,666,968 ($70,156) $563,543 Western Wake $813,846 $846,847 $828,557 ($18,290) $14,711 Totals $14,524,339 $15,760,392 $15,300,035 ($460,357) $775,696 Figures include base and recommended expansions
Cost Share Requests Operating – County Recommended Increase / Increase / FY 21 3.9.2020 FY 20 County FY 21 Request FY 21 County Department Budget Comm (Decrease) (Decrease) from Appropriation with Cost Share Recommended Recommended from 3.9.2020 FY 2020 ($162) Apex $1,242,269 $1,269,267 $1,269,267 $1,242,107 ($27,160) - Cary $50,000 $50,000 $50,000 $50,000 - ($45,089) Fuquay-Varina $2,031,128 $2,026,555 $2,026,555 $1,986,039 ($40,516) ($51,053) $71,054 Garner $2,274,889 $2,396,996 $2,396,996 $2,345,943 $696,477 ($15,327) ($10,428) Holly Springs $691,578 $696,477 $681,150 ($17,956) ($58,287) Morrisville (HH) $846,120 $805,789 $805,789 $787,833 ($141,376) Rolesville(HH) $806,253 $675,601 $675,601 $664,877 ($10,724) $167,778 Wake Forest $1,356,275 $1,720,800 $1,720,800 $1,524,053 ($196,747) $584,339 $584,339 $572,847 ($11,492) ($7,807) Zebulon (HH) $580,654 Total $9,879,166 $10,225,824 $10,225,824 $9,854,849 ($370,975) ($24,317) County Share figures include base and recommended expansions *Requests excludes positions and other items the County does not share on. Requests do not include additional funding added by Wake County for LGERS and merit increases. (HH) = Hold Harmless Amount 17
Wake County Fire Tax District FY20 Adopted vs FY21 County Recommended Change from FY 20 FY21 3.9.2020 FY21 County Departments Previous Adopted Recommended Recommended Recommended Cost Share $10,225,824 $9,854,849 ($370,975) $9,879,166 100% Funded $14,524,339 $15,760,392 $15,300,035 ($460,357) Systemwide Expenses $1,337,172 $1,409,510 $1,421,510 $12,000 Total $25,740,677 $27,395,726 $26,576,394 ($819,332) Figures include base and recommended expansions
Operating – Personnel Expansion Recommended - $67,604 • 3% Merit Increase for Part-Time Employees of 100% Funded Departments - $51,500 • Captain Per Shift at Wendell Station 2 - $9,000 • Additional Pooled Overtime to Cover vacation/sick for 9 new FTE’s at New Wendell Falls Fire Station - $17,000 • Northern Wake -Additional Part-Time Funds to cover vacation/sick due to FSLA Rule on Trading Time -$30,733 • Fairview – Additional Part-Time Funds to cover vacation/sick $10,871 • Wake New Hope – Additional $8,000 for Duty Crew Coverage 19
Operating – Misc. Items Recommended • Hopkins – Additional Funding for Travel & Training $6,000 • Northern Wake – Additional Funding for Travel & Training $11,000 • Wendell – Additional Operating Expenses for New Station $7,500 20
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