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HomeMy WebLinkAboutFire EMS 2021-12-14 Agenda PacketCity of Tukwila Future of Fire/EMS Service Community Advisory Committee Meeting 2 Tuesday, December 14, 2021 1 4:00 PM — 6:00 PM The meeting will be conducted on Zoom. The phone number for the public to listen to this meeting is: 1-253-215-8782, Meeting ID is 860 3504 6403, Passcode 461030. Agenda 1. Welcome, Introductions, Review of Agenda (15 min.) Karen Reed, facilitator 2. Review and approval of meeting summary from the November 9 Committee meeting (3 min.) Karen 3. Logistics: confirming dates/times for Meetings 3-9 (2 min.) Karen 4. Response to questions asked at previous meeting (10 min.) Staff Team • Station call data (Jake Berry) • CPSM Study (Fire Dept) 5. Nominations for Panel Chair — to be forwarded to City Council (7 min.) • Wait or act on Vice -Chair? 6. Recap of Meeting 1 Presentations (7 min.) Vick Carlsen, Finance Director; Norm Golden, Deputy Fire Chief • City services and finances • Fire Dept. services and funding 7. Enhanced Services — deeper diver (15 min.) 8. Committee Roundtable: (20 min.) • What is important to you about the Tukwila Fire Department? • What is your perception of the services provided by Tukwila Fire Department? • Do you have any questions about the services provided today? • Initial thoughts on the proposed service enhancements? --Break--(5 min.) 9. Fire Department Financial Forecast/ Financial Strategic Plan (35 min.) Bill Cushman • Q&A 10. IAFF Union Comment (3 min.) IAFF President James Booth 11. Next Agenda/Adjourn (2 min.) Karen 1 City of Tukwila Future of Fire/EMS Services Community Advisory Committee November 10, 2021 Virtual Meeting due to COVID-19 Emergency 4:00 p.m. DRAFT MINUTES Present Committee members: Ramona Grove, Jim Davis, Katrina Dohn, Jovita McConnell, Peggy McCarthy, Abdullahi Shakul, Andy Reiswig, Dennis Robertson, Verna Seal, Sally Blake, Ben Oliver, Hien Kieu City officials, staff, & consultants: Allan Ekberg, Kate Kruller, David Cline, Laurel Humphrey, Norm Golden, Jay Wittwer, Vicky Carlsen, James Booth, Juan Padilla, Karen Reed, Bill Cushman 1. Welcome, Introductions, Review of Agenda All attendees introduced themselves. Ms. Reed reviewed zoom meeting protocols and the meeting agenda. 2. Comments from Mayor Ekberg and Council President Kruller Mayor Ekberg and Council President Kruller each provided welcoming remarks. 3. Community Advisory Committee Mission & Timeline Ms. Reed provided an overview of the Committee's mission and timeline. 4. Committee Process Committee members agreed that Tuesdays from 4-6 p.m. could be targeted for future meetings. Ms. Reed reviewed the contents of the committee binder. 5. Review of draft Charter The Committee discussed the Charter. 6. Review and Adoption of Ground Rules The proposed Ground Rules were adopted by unanimous consent. 7. Introduction to City of Tukwila Government Ms. Carlsen provided an overview of the City's General Fund and budgetary considerations. 8. Introduction to Tukwila Fire Department Chief Wittwer, Deputy Chief Golden, and Captain Booth provided an overview of the Fire Department. Information Requests: • Provide number of calls by type (EMS vs Fire) per day, per station 2 • Provide data/outcomes from other cities that joined a regional effort 9. Union Comment Captain Booth gave remarks. 10. Next Agenda/Adjourn Ms. Reed reviewed the December 14, 2021 preliminary meeting agenda. The meeting was adjourned at 6:04 by unanimous consent. Minutes by LH 3 City of Tacoma Future of Fire/EMS Services Community Advisory Committee Meeting Schedule for Meeting 3-9 All dates are TUESDAYS, from 4:00 p.m. to 6:00 p.m. All meetings will be conducted on Zoom unless we are able to meet in person. If you are unable to attend any of the meetings, please let Karen know (kreedconsult@comcast.net / 206 932 5063) Meeting 3 January 4, 2022 Meeting 4 February 1, 2022 Meeting 5 February 15, 2022 Meeting 6 March 8, 2022 Meeting 7 March 22, 2022 Meeting 8 April 5, 2022 Meeting 9 April 19, 2022 Additional meeting may be scheduled if there is a request from Council and/or additional time is needed for the committee to complete its work. 4 Tukwila Fire Dept Call Distribution 2500 2,000 1,500 1,000 500 0 823 58 Response Types by District Jan - Nov 2021 2,009 1,565 65 94 840 Station 51 Station 52 54 Station 53 Station 54 ■ EMS ■ Fire ■ Other 1,015 70 OSA 35% 30% 25% 20% 15% 10% 5% 0% 13% 1°% Station 51 Response Types by District % Jan - Nov 2021 25% 2% 13% 1% Station 52 Station 53 ■ EMS ■ Fire ■ Other 32% 1% 16% 1% Station 54 OSA Tukwila Fire Dept Call Distribution Response Types by District 823 58 241 524 Station 51 1,565 9L 402 1,069 Jan - Nov 2021 840 54 173 1 613 Station 52 Station 53 EMS • Fire • Other 2,009 65 X98 1,546 1,015 70 637 Station 54 OSA 35% 30% 25% 20% 15% 10% 5% 0% Tukwila Fire Dept Call Distribution Response Types by District % Jar - Nov 2021 13% 1% Station 51 25% 6% 17% 13% 1% 10% Station 52 Station 53 32% 196 16% 1c` 5% 10910 Station 54 OSA CITY OF TUKWILA FUTURE OF FIRE/EMS COMMUNITY ADVISORY COMMITTEE Re -cap of Meeting 1 Presented at Meeting 2, December 14, 2021 CITIZEN ADVISORY COMMITTEE MISSION The Committee's Mission is to provide advice to Mayor/Council on Fire/EMS Services in City of Tukwila regarding: Aa Sustainability of Fire Service Levels within Existing City Revenues B. Any additional Fire Department Programs and Staffing Services that should be Priorities to Fund in the Near -Term (0-6 years) C. Criteria for Evaluating the City's Options for Future Fire/EMS Service Delivery D. Recommendation as to the Preferred Option(s) for ensuring Future Provision of High -Quality Fire/EMS Services in the City at a Sustainable Cost. E. Public Engagement Strategies fore the City to Consider as part of Deliberations following Delivery of the Advisory Committee's Report Schedule: Meet Nine (9) Times and deliver report to Mayor/Council by end of April 2022. ‹sgMY i l til RE -CAP ON CITY FINANCES • Tukwila is a full-service city—revenues must support many services Police Department Fire Department Parks & Recreation Public Works Community Development Technology & Innovation Services Mayor's Office Human Resources Finance Department City Clerk's Office • We must balance the cost of providing services with existing revenue sources • Current revenues to not keep up with the cost of services nor the demand for services On average, costs grow at 5%/year, revenues at 3%/year. Cuts and efficiencies made each year to ensure budget balances (state law requirement) • The City has not asked for voter support for operational costs for Fire • The only voter approved funding measure for Fire was for capital in 2016 (Public Safety Plan – PSP) • The City has not asked voters to approve an increase to existing revenue sources for other Departments 10 City 2021 General Fund Budget $62M Fire Department: $13.7M or 22.1% *of General Fund Budget (excluding debt service on bonds) *Reflects 2021 budget amendment included $110k for contracts and $920k for overtime. $180 $160 $140 $120 $100 $80 $60 $40 $20 $- GENERAL FUND BUDGET CHALLENGE Balancing Problem: Expenses exceed Revenues over time To Balance - Decrease Expenses or Increase Revenues Revenues (3% growth) — — Expenses (5% growth) Year 1 Year 2 Year 3 Year 4 Year 5 Year 5 Year 7 Year 8 Year 9 Year 10 12 TUKWILA FIRE DEPT. QUICK FACTS Fire Stations Employees Services Provided Response Times Operating budget, 2021 Services provided through regional systems 4 65 (3 Admin, 3 Training, 5 Fire Marshal's Office, 54 Operations) Fire suppression, emergency medical services, permit review, fire investigations Among fastest in Zone 3 $13.7M* (Excluding debt service on voter approved bonds to rebuild two stations, issued 2016, 2019) Medic 1, Public Information Officer, Technical Rescue, 911 Dispatch, Training Consortium, BLS Funding *Reflects 2021 budget amendment Tukwila Fire Department City of Tukwila Facilities rirmi' _02J. Lnigt 51211 Map Legend • GAT Fmoldy City Real:KIM a Fay in ForIty T.a41 -•••• $1, T.1.141. PO% rialotorly =I Cry tyres - Pima lamc M=world:Ws, amrlaza aarmffirr rarr ommtv•miiimiumir momommismokorm.Imi Irmrov min ir amp MI =oft. nma it Me. Station 53 Station 52 14 2020 RESPONSE TIMES 2020 Fire Turnout Time: Goal -Met Percerm3ge a 7D1 Fire Turnout Time Goal- Under 3:01 93.89i 2020 Fire Response Time: Goal -Met Percentage 7cr': -ram Fire Response Time Goal- Under 7:59 Dispatch time 2020 EMS Turnout Tirane: Goal -Met Percentage EMS Turnout Time Goal- Under 2:38 89.2% 202C EMS Response Tiirrre: Goal -Met Percentage 70r BSL. 86.2% 100 EMS Response Time Goal- Under 7:52 Turnout time Travel time 86.3% 1,, it* 8 Total response time 15 Enhanced Services Introduction The Fire Department has identified three potential service enhancements that would be a priority for the Department to add, were funding available. These programs are: • Establish a Public Education Program • Participation in the South County CAREs partnership (Community Assistance, Referrals and Education Services) which responds to low -acuity mental health needs and other vulnerable clients • Expansion of fire inspection/investigation staffing These programs are introduced below. The cost of these additions is summarized in the Department Strategic Plan. Public Educator / Public Information and Education (PIE) Programs Public Education programs empower individuals and businesses to avoid activities that could lead to harm and respond to emergent situations to minimize the risk of severe injury or even death. Education topics span a wide range of fire and life safety disciplines, including: Kids, Businesses, Home, Injury Prevention, and Community Programs. PIE programs can respond to topical issues such as the COVID 19 Pandemic/Vaccination, as well as other issues that come up. An example is the need to do community education due to recent extreme cold weather. Grilling safety can include information to not use a propane grille inside the house for a heat source. • Business Community Education • Residential Education • CPR/AED/First Aid classes • Juvenile Fire -setting Intervention Program • Car Seat Education and Installation • Personal Safety Videos • Children Education Programs in schools: (9-1-1 education, What's an Emergency, Learn Not to Burn) • Boating Safety • Drowning Prevention • Grilling Safety • Poison Safety & Facts • Water Safety • Fire Prevention Month • COVID 19 Information • Injury Prevention • Tour (Station and Site Visits) • National Night Out • Scout Night 16 • Career Fairs • Smoke Detector/CO Alarm program Current status and options, anticipated staffing/funding requirements Currently, we do not have a specified Public Education Program. If there is an imminent need for a public education, the Support Services Chief would develop the program. An example would be a social media campaign when it gets cold to not use propane grilles indoors. Both Renton and Puget Sound have robust Public Education Programs. A potential partnership could be explored with either entity. Tukwila would need between a 0.8 and 1.0 FTE to support this role. This would be an educator position that is assigned to the specialized work. The support needs would be a vehicle and education materials. CARES Program This program (Community Assistance, Referrals and Education Services program), referred to as CARES or FDCARES, is a fire agency -based community injury and illness prevention program. CARES has been developed so that fire departments may assist community members with issues before an issue becomes an emergency. The program works to improve the quality of health throughout our community and provide for a longer healthier independent lifestyle, by connecting individuals with resources to address their needs. The program funds mobile units that can respond to low -acuity cases that do not require basic life support (BLS), advanced life support (ALS), or fire services. The mobile units are often staffed with a social worker and firefighter. The Fire Department data shows it is responding to a handful of these cases annually (1/3 to %z of a CARES unit. Less than 10 per year—shifting of new responsibilities to fire departments expected to increase this), so the proposal here would be to contract with another agency – either Renton RFA or Puget Sound RFA, each of which operates a full time CARES unit, and to refer CARES -appropriate calls within the City to these contract service providers. Seattle also operates a similar program. Current status and options, anticipated staffing/funding requirements The City does not have a CARES unit today. A shared unit (serving multiple fire/EMS providers) makes the most sense, given caseload projections. There is regional funding (offered on a reimbursement basis) from King County's Mobile Integrated Healthcare (MIH) program to support this program. That regional funding is made possible from a regional levy that will need to be renewed in 2025. Under current allocation formulas, could provide up to $93,000 a year to Tukwila in reimbursements, inflating each year. The funding cannot be used for existing BLS, ALS or fire suppression services. There are similar needs in Skyway, Highline, Burien, and White Center. These departments could partner with Tukwila, and use county funds to support a shared unit. 17 Fire Inspection/Investigation Staffing The Tukwila FMO is responsible for providing four main areas of service to the Tukwila community: • Fire Investigations: Determining cause and origin of fires. • Fire Development Services: Fire Plan Review and Fire Inspections for Construction and Land Use permits. • Fire Code Enforcement Services: Business Life Safety Inspections, Operational Fire Permit Inspections, New Business Life Safety Inspections and Fire Code Enforcement. • Other Administrative FMO Services: 911 addressing, respond to public records requests, records management of all FMO activities, FMO billing. The Tukwila EMO has seen a steady volume of development permits even during the pandemic, and most recently, has seen an increase in the need for fire investigations. Due to budget and staffing constraints, the Tukwila FMO has not been able to provide an active and reoccurring fire code enforcement services for several years. Current status and options, anticipated staffing/funding requirements The Tukwila Fire Marshal's Office is currently staffed with five (5.0) FTEs. With additional staff, from 1.0 to 3.0 FTE's, Tukwila could provide regular inspections, every one to three years, for the estimated 2,500 businesses within Tukwila. Annual inspections could be provided for the estimated 400-600 commercial occupancies that have higher hazards. Additional staff, from 1.0 to the full 3.0 FTE would increase the number of inspections that could be completed each year. 18 Projected Cost of Enhanced Services (2021-2028) Enhanced Services 2022 2023 2024 2025 2026 2027 2028 Public Educator 115,313 119,003 122,811 126,741 130,796 134,982 139,301 Pub Ed Supplies (1) 5,000 2,500 2,550 2,601 2,653 2,706 2,760 Pub Ed Vehicles M&O 2,500 2,550 2,601 2,653 2,706 2,760 2,815 122,813 124,053 127,962 131,995 136,155 140,448 144,877 Fire Inspector 1 145,090 154,231 159,166 164,260 169,516 174,941 180,539 Inspector 1 Supplies 6,000 3,000 3,060 3,121 3,184 3,247 3,312 Inspector 1 Vehicle 2,500 2,550 2,601 2,653 2,706 2,760 2,815 153,590 159,781 164,827 170,034 175,406 180,948 186,666 Fire Inspector 2 145,090 154,231 159,166 164,260 169,516 174,941 180,539 Inspector 2 Supplies 6,000 3,000 3,060 3,121 3,184 3,247 3,312 Inspector 2 Vehicle 2,500 2,550 2,601 2,653 2,706 2,760 2,815 153,590 159,781 164,827 170,034 175,406 180,948 186,666 Fire Inspector 3 145,090 154,231 159,166 164,260 169,516 174,941 180,539 Inspector 3 Supplies 6,000 3,000 3,060 3,121 3,184 3,247 3,312 Inspector 3 Vehicle 2,500 2,550 2,601 2,653 2,706 2,760 2,815 153,590 159,781 164,827 170,034 175,406 180,948 186,666 CARES EMT (.33 FTE) 58,706 60,585 62,523 64,524 66,589 68,720 70,919 CARES M&O 250,000 255,000 260,100 265,302 270,608 276,020 281,541 308,706 315,585 322,623 329,826 337,197 344,740 352,459 Enhanced Services Budget 892,290 918,980 945,067 971,923 999,570 1,028,032 1,057,335 Offsetting Revenues CARES Grant* (100,800) (100,800) (100,800) (100,800) (100,800) (100,800) (100,800) Enhanced Services Net Cost 791,489 818,181 844,266 871,123 898,770 927,232 956,534 Levy Rate for Enhanced Services (assuming 6.47% annual AV growth) 0.096 0.094 0.093 0.091 0.089 0.088 0.086 *Revenue is from King County for CARES unit funding. Revenue in 2023 and beyond is not yet known but will be at least the 2022 funding level. 19 City of Tukwila Future of Fire/EMS Community Advisory Committee Strategic Financial Plan for the Tukwila Fire Department 2021-2028 Document Prepared by Bill Cushman December 9, 2021 Introduction: Budgeting vs Strategic Financial Planning Budgeting and strategic financial planning are not synonymous, they are not the same thing. Financial planning focuses on the long-term view and distant planning horizon. It presents goals and targets; it offers strategic alternatives for accomplishing the annual targets and the long-term goals. It helps direct scares resources directly in support of organizational achievements. Budgeting, on the other hand, is the incremental, short-term allocation of available resources to move toward the accomplishment of defined targets on an annual basis. Every organization has the ability to envision, to articulate, and to define timeframes, as it sets out to accomplish certain desired goals. Each separate goal will require the collection of resources, will require the identification of its scope, and will require the specific application of monetary assets. In other words, each goal needs a description (scope), a timeline (when), and money (how much)! This Model provides for the incorporation of each of these three needs and the ability to always keep them current. The Tukwila Fire Department Financial Plan for 2021-2028 The strategic planning model introduced below is designed to capture a series of goals, to attach a timeframe to each goal, and to articulate both the source and the amount of funding that is required to accomplish each goal. The model presented in the following pages shows the cost of maintaining the "status quo" Tukwila Fire Department operation – same number of staff, same number of fire stations—over the next 7 years. The model can be adjusted to change any of the inputs or goals: more or fewer fire stations, higher or lower reserve fund levels, additional staff, additional programs. 20 Components of the Strategic Planning Model. Executive Summary. The Executive Summary highlights all the most important financial statistics found elsewhere in the model. Highlights include assessed values, levy rates, property taxes, operating revenues, transfers to the reserve accounts, and expenses for the Tukwila Fire Department (TFD) operating programs. All the values displayed in the following table have been extracted from elsewhere in the Model. Fire -Related Bonds Tukwila AV (000's) 7,883,058 8,277,210 8,691,071 9,125,625 9,581,906 Voted -Bonds Excess Levy 1,550,108 1,870,128 1,904,103 2,049,083 2,104,438 Excess Levy Rate for Debt Service 0.20 0.23 0.22 0.22 0.22 Voted -Bonds Payments 1,550,108 1,870,128 1,904,103 2,049,083 2,104,438 Tukwila Assessed Value 7,883,057,562 8,277,210,440 8,691,070,962 9,125,624,510 9,581,905,736 Regular Property Taxes 17,183,883 17,705,823 17,902,622 18,094,924 18,288,931 TFD Share of Property Taxes 79.6% 82.4% 84.1% 85.9% 87.8% Property Taxes Allocated To TFD 13,684,222 14,583,225 15,057,060 15,546,776 16,052,923 EMS "Levy" 477,798 488,421 499,280 510,380 521,727 Operating Revenue 278,200 283,764 289,439 295,228 301,133 Executive Summary 2021 2022 2023 2024 2025 2026 2027 2028 Total Resources Available Transfers to Reserves Apparatus Reserve Equipment Reserve Facilities Reserve Debt Service Reserve Retirement Reserve Total Reserve Transfers 10,061,001 4,179,554 0.42 4,179,554 10,061,001,023 18,484,781 89.7% 16,576,072 533,327 307,155 10,564,051 4,237,059 0.40 4,237,059 10,564,051,074 18,682,501 91.6% 17,116,815 545,184 313,298 11,092,254 4,294,894 0.39 4,294,894 11,092,253,627 18,882,113 93.6% 17,675,764 557,305 319,564 14,440,220 15,355,409 15,845,779 16,352,384 16,875,783 17,416,554 17,975,297 18,552,633 1,000,000 0 0 0 87,500 1,050,000 90,000 0 0 90,125 1,102,500 92,700 0 0 92,829 1,157,625 95,481 0 0 95,614 1,215,506 98,345 0 0 98,482 1,276,282 101,296 0 0 101,436 1,340,096 1,407,100 104,335 107,465 0 0 0 0 104,480 107,614 1,087,500 1,230,125 1,288,029 1,348,720 1,412,334 1,479,014 1,548,910 1,622,179 Operating Expenses Administration 100 1,291,779 1,357,955 1,397,082 1,437,374 1,478,866 1,521,597 1,565,603 1,610,924 Suppression 200 660,051 673,252 686,717 700,451 714,460 728,750 743,325 758,191 Suppression 201 3,238,074 3,440,890 3,550,661 3,663,939 3,780,835 3,901,464 4,025,946 4,154,405 Suppression 202 3,223,805 3,426,335 3,535,816 3,648,797 3,765,389 3,885,710 4,009,877 4,138,014 Suppression 203 3,210,555 3,412,820 3,522,031 3,634,736 3,751,047 3,871,081 3,994,955 4,122,794 Suppression 204 - - - Amb/Rescue/Aid 208 37,714 38,468 39,238 Amb/Rescue/Aid 230 210,870 215,087 219,389 Prevention/Investigation 300 853,880 905,016 933,219 Training 410 515,130 542,383 558,259 Facilities 500 110,860 113,077 115,339 NEW PROGRAMS 600 Total Program Expenses TFD: Base Case Total Reserve Transfers and Operating Expenses 40,022 223,777 962,310 574,613 117,646 40,823 228,252 992,317 591,461 119,998 41,639 232,818 1,023,267 608,816 122,398 42,472 43,322 237,474 242,223 1,055,193 1,088,123 626,696 645,116 124,846 127,343 13,352,720 14,125,284 14,557,750 15,003,664 15,463,449 15,937,540 r 16,426,387 16,930,454 2021 2022 2023 2024 2025 2026 2027 2028 14,440,220 15,355,409 15,845,779 16,352,384 16,875,783 17,416,554 17,975,297 18,552,633 21 Assessed Value. The Assessed Value (AV) model shows a 10 -year history of assessed values for both the general fund levy, along with an outlook for the growth of assessments through 2028. From 2009 through 2013 assessed values actually decreased. Then a revival in 2014 began a continuous increase in values through 2021, growing at 8.14% compounded annually. For planning purposes, the financial model is using a future growth trend of 5% compounded annually after 2021—for years 2022 through 2028. NOTE: AV growth does not correlate to revenue growth: State law caps property tax receipts to 101% of the prior year's receipts plus taxes on new construction. See Table A. Property Taxes and Reserve Transfers. The Property Tax and Reserve Transfers Model shows the outlook for levy rates aligned with the outlook for assessed values to depict a likely outlook for taxes and future levy rates for the general fund levy and the excess levy for repayment of the capital fire bonds. Also shown are the transfers or contributions to the reserve funds to accomplish the goals of each reserve over eight years. See Table B. In addition to the regular general fund property tax levy, the city also collects taxes for the repayment of certain "fire" capital improvement bonds through an excess levy. An additional fire bond is tentatively identified for issuance in 2025 for improvements to stations 53 and 54. (See Table H). These bonds are subject to voter approval. When the bonds are paid off, the excess levy will be removed. The city receives a small rebate from King Co. originally collected as a property tax by the county in support of the EMS programs. The apparatus reserve account will acquire future apparatus with cash contributions from existing general fund property taxes, not bonds. The equipment reserve account will acquire future equipment with cash contributions from existing general fund property taxes, not bonds. The facilities reserve account will maintain the stations funded by a dedicated impact fee revenue stream. The debt service reserve account does not show any new liabilities that would not be already covered by excess levies. The retirement reserve account accumulates funds for the eventual payout of unused sick leave and vacation hours due to department personnel upon retirement or separation from service. Operating Program Summary. The Operating Program Summary shows the cost of labor and the cost of M&O for each operating program 2021-2028. See Table C. Enhanced Services. The cost of adding the priority enhanced services (public education, additional fire marshal staffing, and contracting for a CAREs unit are shown in Tables E and F—Enhanced Service costs are excluded from the Base Case Strategic Plan Summary in Table D. 22 4 12 Table A: Growth in Tukwila Assessed Value — historical actuals and model assumptions Compounded Annual Growth Rate: AV 2009 Consensus AV Growth Rate Outlook 4.783% 2021-2028 5.00% 2021 Average 6.46% Compounded Annual Growth Rate: AV 13 2014 8.14% 14 2021 15 $12,000,000,000 $10,000,000,000 $8,000,000,000 $6,000,000,000 $4,000,000,000 $2,000,000,000 $- Tukwila Assessed Value: 2009-2028 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 16 2021 2022 2023 2024 2025 2026 2027 2028 7,883,057,562 8,277,210,440 8,691,070,962 9,125,624,510 9,581,905,736 10,061,001,023 10,564,051,074 11,092,253,627 6.46% 7,883,057,562 8,260,091,911 8,655,159,225 9,069,121,992 9,502,883,953 9,957,392,072 10,433,638,605 10,932,663,268 4.78% 4.78% 4.78% 4.78% 4.78% 4.78% 4.78% 4.78% 2.17985 17,183,883 2.6% 2.139105137 2.059886734 1.982869691 1.908694501 1.837270588 1.768497781 17,705,823 3.0% 17,902,622 1.1% 18,094,924 1.1% 18,288,931 1.1% 18,484,781 1.1% 18,682,501 1.1% 1.7022792071 18,882,113 1.1% 20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 General Fund Prop Taxes O ti M V N 0 N 00 0l O ti M V u1 10 N W N N N N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 0 0 0 0 ry ry N NNNNNNNNNNNNNNNN 23 Table B: Fire Department Costs and City Property Taxes ImportfromTUKAV Tukwila Assessed Value AV GROWTH RATE Excess Levy for Fire Bonds Excess Levy Rate (2016-2019 Bonds) Excess Levy for Fire Bonds Levy Rate for 2025 Bonds LEVY RATES Regular Levy LID LIFT Property Taxes 2021 2022 2023 2024 2025 2026 2027 2028 7,883,057,562 8,277,210,440 8,691,070,962 9,125,624,510 9,581,905,736 10,061,001,023 10,564,051,074 11,092,253,627 > 5.00% 5.00% 5.00% 5.00% 5.00% 5.0096 5.00% 2021 2022 2023 2024 2025 2026 2027 2028 1,550,108 1,870,128 1,904,103 2,049,083 2,104,438 $0.197 Excess Levy for Fire Bonds 1,550,108 Max City Levy Rate Current Levy Rate EMS "Levy Rebate" from King Co. (See TUK AV) $0.226 $0.219 $0.225 $0.220 2,163,083 $0.215 2,016,471 $0.200 2,220,588 $0.210 2,016,471 $0.191 2,278,423 $0.205 2,016,471 $0.182 1,870,128 1,904,103 2,049,083 2,104,438 4,179,554 4,237,059 4,294,894 3.60 3.60 3.60 3.60 3.60 3.60 3.60 3.60 $2.180 $2.139 $2.060 $1.983 $1.909 $1.837 $1.768 $1.702 2.18 17,183,883 17,705,823 17,902,622 18,094,924 18,288,931 18,484,781 18,682,501 18,882,113 477,798 3.04% 488,421 2.22% 499,280 2.22% 1.07% 510,380 2.22% 1.07% 521,727 2.22% 1.07% 533,327 2.22% 1..07% 545,184 2.22% 1.07% 557,305 2.22% 2021 2022 2023 2024 2025 2026 2027 2028 Excess Levy 1,550,108 Fire Levy 17,183,883 Total Property Taxes 18,733,991 1,870,128 17,705,823 19,575,951 Property Taxes Transferred to Reserves 1,904,103 17,902,622 19,806,725 2,049,083 18,094,924 20,144, 007 2,104,438 18,288,931 20,393,369 4,179,554 18,484,781 22,664,335 4,237,059 18,682,501 22,919,560 4,294,894 18,882,113 23,177,007 Apparatus Reserve 1,000,000 1,050,000 1,102,500 1,157,625 1,215,506 1,276,282 1,340,096 1,407,100 Equipment Reserve 0 90,000 92,700 95,481 98,345 101,296 104,335 107,465 Facilities Reserve o 0 0 0 0 0 0 0 Debt Service Reserve o 0 0 0 0 0 0 0 Retirement Reserve 87,500 90,125 92,829 95,614 98,482 101,436 104,480 107,614 Transfers to Reserves 1,087,500 1,230,125 1,288,029 1,348,720 1,412,334 1,479,014 1,548,910 1,622,179 24 Table C: Operating Program Summary (see program descriptions below) Labor M&O ADMINISTRATION TOTAL 1,291,779 FIRE PROGRAM EXPENSES 2021 2022 2023 2024 2025 2026 2027 2028 938,168 353,611 997,272 360,683 1,029,185 367,897 1,062,119 375,255 1,096,106 382,760 1,131,182 390,415 1,167, 380 398,223 1,204,736 406,188 Labor M&O SUPPRESSION TOTAL 10,332,486 10,953,298 11,295,225 11,647,923 1,357,955 1,397,082 ,437,374 1,478,866 1,521,597 ,565,603 1,610,924 9,631,666 700,820 10,238,461 714,836 10,566,092 729,133 10,904,207 743,716 11,253,142 758,590 11,613,242 773,762 11,984,866 789,237 12,368,382 805,022 Labor M&O AMB/RESCUE/AID TOTAL 248,584 12,011,732 12,387,004 12,774,103 3,173,403 248,584 253,556 258,627 263,799 269,075 274,457 279,946 285,545 Labor M&O INVESTIGATION TOTAL Labor M&O TRAINING TOTAL 515,130 253,556 258,627 263,799 269,075 274,457 279,946 285,545 792,038 61,842 841,937 63,079 868,879 64,340 896,683 65,627 925,377 66,940 954,989 68,279 985,548 69,644 1,017,086 71,037 853,880 905,016 933,219 962,310 992,317 1,023,267 1,055,193 1,088,123 394,185 120,945 419,019 432,428 123,364 125,831 446,265 128,348 460,546 130,915 475,283 133,533 490,492 136,204 506,188 138,928 Labor M&O FACILITIES TOTAL 110,860 542,383 558,259 574,613 591,461 608,816 626,696 645,116 110,860 113,077 115,339 117,646 119,998 122,398 124,846 127,343 TOTAL LABOR TOTAL M&O TOTAL PROGRAM EXPENSES 11,756,058 1,596,662 113,077 115,339 12,496,689 1,744,000 12,896,583 1,778,880 117,646 13,309,274 1,814,458 119,998 13,735,171 1,850,747 122,398 124,846 14,174,696 1,887,762 14,628,286 1,925,517 127,343 15,096,392 1,964,027 13,352,720 14,125,284 14,557,750 15,003,664 15,463,449 15,937,540 16,426,387 16,930,454 25 Table C cont'd. Staffing FIRE CHIEF 2021 2022 2023 2024 2025 2026 2027 2028 DEPUTY CHIEF BAT CHIEF CAPTAIN FIREFIGHTER PROJECT COORDINATOR ASSISTANT TO THE CHIEF ADMIN SUPPORT TOTAL STAFFING 1 1 5 16 39 1 1 1 65.00 1 1 5 16 39 1 1 1 65.00 1 1 5 16 39 1 1 1 65.00 1 1 5 16 39 1 1 1 65.00 1 1 5 16 39 1 1 1 65.00 Program: Administration. provides oversight, direction, support and encouragement to the various divisions, teams, and individual members of the fire department. Program: Suppression. responds to the numerous daily field operations that occur within the city and its extended mutual aid response area. Categorically, these operations are most frequently considered to be emergency or non -emergency. Responses to emergencies include, but are not limited to, fire, medical aid, transportation accidents, property damage, operations level hazardous materials and rescues. The division also supports other fire operations such as specialized/technical rescue response, technical hazardous materials response, training, fire prevention, public education, public relations, and business inspections. The division engages in continuous and ongoing training in area of responsibility. Program: Ambulance & Rescue. The purpose of the Fire/Ambulance, Rescue and Emergency Aid division of the Fire Department is to provide basic and advanced life support to the citizens and general public of Tukwila as well as within our mutual aid response areas. Ambulance service is provided on a limited basis as outlined in Fire Department Standard Operating Procedure. Current service levels include 100% of fire fighters trained as E.M.T.'s and defibrillation technicians, and one aid car, three engines, one ladder truck, and one battalion rig with emergency care capabilities. 1 1 5 16 39 1 1 1 65.00 1 1 5 16 39 1 1 1 65.00 1 1 5 16 39 1 1 1 65.00 Program: Prevention & Investigation. The Fire Prevention Bureau is responsible for enforcing the provisions of the City ordinances and International Fire Code, which is accomplished through commercial occupancy surveys, administration of Fire Department permits, investigation of fires, code enforcement and accountability for these activities. Another important goal is education of the public and business owners to prevent fires and safety emergencies from occurring. Program: Training. The Training Division team serves to provide training for all phases of the fire department as well as special training such as urban rescue and hazardous materials. Training is received in many ways: regularly scheduled drill, independent study, fire prevention inspections, pre - fire planning and during emergency operations. Training is now recognized as the number one priority for the career firefighter. New and exotic chemicals are creating ever-changing hazards for the firefighter and knowledge is the key to survival. EMS skills are constantly being upgraded and the progressive department must keep abreast of the new developments. Program: Facilities. Facilities is the operation, maintenance, and utilities of the four stations owned by the City of Tukwila. The purpose of the Facilities budget is to provide a cost accounting for the maintenance, upkeep, and utilities used by the four fire stations. 26 The Strategic Financial Plan for Tukwila Fire Table D identifies the revenue sources and revenue amounts under Fire Resources required to support the existing fire programs as identified under Fire Budgeted Expenses. The revenues and expenses are exactly balanced, therefore no surpluses or deficits come into play. What is new here is the cashflows associated with the reserve accounts. The strategic plan introduces separately managed reserve accounts with dedicated funding and separately budgeted annual cash outlays for expenses incurred only on behalf of accomplishing the goals of that reserve account. Funds are not co -mingled between reserve accounts; each one stands on its own, with its own targets, goals, and defined purpose. Key Observations • The key differences in the model, as compared to how the City currently budgets for fire are the addition of the reserve accounts. The reserve amounts reflect the actual expected expenditure over the planning period. By funding reserves, there is stability in the City's contribution to Fire from year to year – no significant jumps in cost. • Another difference between the City budget and the strategic plan is that the strategic plan includes a level of overtime expense that reflects recent experience. • The firefighter labor contract growth in salaries from year to year is tied to local inflation rates; there was a significant 6.3% growth in that rate based on the CPI -W June to June from 2020 to 2021 which will apply in 2022. • City general fund revenues grow 3% on average year to year. • Property tax collections grow at a rate of between 1-3%, depending on how much new construction is coming on the tax rolls. • Average annual growth rate in status quo Fire Dept. operation costs over the next 7 years is projected at 3.2%/yr. (without enhanced services) • The model shows that the Fire Department currently expends the equivalent of $1.80/$1,000 AV in 2022, or 82% of all City property taxes. The share of property taxes going to the Fire Department will grow to 97% by 2028 – assuming the City does not ask voters for a general lid lift. o In comparison, most fire districts/regional fire authorities levy between $1.40- $2.00/$1,000 AV equivalent in taxes and benefit charges. o The maximum City property tax rate allowed under law is $3.60/$1,000 AV—but this must be applied to support all city programs (police, parks, streets, etc.). o Property tax comprises 27% of the City's General Fund Revenues in 2021. • Most, if not all, fire districts and most fire departments, go out to voters to secure a voter - approved funding source every few years for operations. Tukwila has never done that. • Without seeking additional revenues from voters, the only way to sustain the Fire Department's projected costs at current service levels with the current operational model is through cutting costs of other City departments. 27 TABLE D: Strategic Outlook, Excluding Enhanced Services Gen Fund Regular Property Taxes Gen Fund Regular Levy Taxes Allocated to TFD TFD Strategic Outlook 2021 2022 FIRE RESOURCES 2023 2024 2025 2026 2027 2028 17,183,883 17,705,823 17,902,622 18, 094, 924 18, 288, 931 18, 484, 781 18, 682, 501 18, 882,113 80% 82% 84% 86% 88% 90% 92% 94% Eqivalent Levy Rate 1.736 1.762 1.732 Regular Levy 13,684,222 14,583,225 15,057,060 EMS "Levy" 477,798 488,421 499,280 Fire Operating Revenue 278,200 283,764 289,439 FIRE RESOURCES 14,440,220 15,355,409 15,845,779 Reserve Transfers Apparatus Reserve Equipment Reserve Facilities Reserve Debt Service Reserve Retirement Reserve TOTAL RESERVE TRANSFERS Labor M&O TOTAL FIRE OPERATING EXPENSES 1.704 1.675 1.648 1.620 1.594 15,546,776 16,052,923 16,576,072 17,116,815 17,675,764 510,380 521,727 533,327 545,184 557,305 295,228 301,133 307,155 313,298 319,564 16,352,384 16,875,783 17,416,554 17,975,297 18,552,633 2021 2022 FIRE BUDGETED EXPENSES 2023 2024 2025 2026 2027 2028 1,000,000 0 0 0 87,500 1,050,000 90,000 0 0 90,125 1,102,500 92,700 0 0 92,829 1,157,625 95,481 0 0 95,614 1,215,506 98,345 0 0 98,482 1,276,282 101,296 0 0 101,436 1,340,096 104,335 0 0 104,480 1,407,100 107,465 0 0 107,614 1,087,500 1,230,125 1,288,029 1,348,720 1,412,334 1,479,014 1,548,910 1,622,179 11,756,058 1,596,662 12,496,689 1,628,595 12,896,583 1,661,167 13,309,274 1,694,390 13,735,171 1,728,278 14,174,696 1,762,844 14,628,286 1,798,101 15,096,392 1,834,063 13,352,720 14,125,284 14,557,750 15,003,664 15,463,449 15,937,540 16,426,387 16,930,454 Total Op. Exp and Reserve Transfer 14,440,220 15,355,409 15,845,779 16,352,384 16,875,783 17,416,554 17,975,297 18,552,633 ENDING CASH 28 Table D-1 Additional Detail on Labor Expense: Salaries, Overtime and Benefits (FTE Count does not change over period) Labor expenses comprise wages and benefits generally all of which have been subject to bargaining unit negotiations and are covered under a document referred to as the CBA: Collective Bargaining Agreement. For planning purposes, we have included the following escalators that apply to the TCC (Total Cost of Labor): 1/1/2022 1/1/2023 1/1/2024 1/1/2025 1/1/2026 1/1/2027 1/1/2028 6.3% 3.20% 3.20% 3.20% 3.20% 3.20% 3.20% Wages are based on a formula that differentiate salaries by rank. A base pay amount is set and then each higher rake is designated to receive a higher rate of pay governed by a percentage differential. An example might look like: Rank Pay Point Pay BAT CHIEF 1.40 $ 8,400 CAPTAIN 1.20 $ 7,200 FIREFIGHTER 1.00 $ 6,000 Beyond base pay, other incentive pay may be available such as educational incentive, longevity and specialized training and skill attainment, as negotiated in the CBA. Benefits include federal payroll mandates for FICA, Medicare, and Medicaid at various rates. State payroll mandates include contributions to LEOFF or PERS retirement fund programs and premiums for worker compensation systems. The largest employee benefit is for medical, vision, and dental insurance premiums which exceed $1,500,000 per year for TFD. The composition of the total cost of labor (TCC) can be broken out into several sub -categories each of which is included by federal mandates, state mandates, or negotiated labor agreements. Direct salaries and wages account for 76% of TCC, while the cost of the added benefits adds an additional 26%. Note that while the inclusion of most benefit categories is either mandated by federal or state fiat or by local negotiations, the COST of those benefits is determined or set by agencies outside of Tukwila. The cost is NOT under the control of either the City or the bargaining units and are NOT subject to negotiations or "budget adjustments." 29 Budgeted Labor Percent of Components TCC in 2021 Salary/Wages 7,905,276 67% Overtime 1,046,128 9% Retirement 449,377 4% FICA/Medicare 114,418 1% Medical Plan Premiums 1,504,440 13% Workers Comp Premiums 387,584 3% Misc. Benefit Charges 348,835 3% TOTAL COST OF LABOR (TCC) 11,756,058 100% Direct Compensation 8,951,404 76% Benefits 2,804,654 24% TCC 11,756,058 100% The two greatest unknowns and uncertain factors in attempting to plan for future labor expenses are wage inflation and the costs of medical insurance. Right now we are experiencing a greater rate of inflation than has been seen in nearly thirty years. Predictions of short-term inflation (3-5 years) vary widely. The cost of Covid 19 have largely been absorbed by insurance programs (i.e., "free vaccinations"), and millions of hospital stays for Covid patients may be recovered through large medical insurance premiums. 30 Table E: Estimated Cost of Enhanced Services Enhanced Services 2022 2023 2024 2025 2026 2027 2028 Public Educator 115,313 119,003 122,811 126,741 130,796 134,982 139,301 Pub Ed Supplies (1) 5,000 2,500 2,550 2,601 2,653 2,706 2,760 Pub Ed Vehicles M&O 2,500 2,550 2,601 2,653 2,706 2,760 2,815 122,813 124,053 127,962 131,995 136,155 140,448 144,877 Fire Inspector 1 145,090 154,231 159,166 164,260 169,516 174,941 180,539 Inspector 1 Supplies 6,000 3,000 3,060 3,121 3,184 3,247 3,312 Inspector 1 Vehicle 2,500 2,550 2,601 2,653 2,706 2,760 2,815 153,590 159,781 164,827 170,034 175,406 180,948 186,666 Fire Inspector 2 145,090 154,231 159,166 164,260 169,516 174,941 180,539 Inspector 2 Supplies 6,000 3,000 3,060 3,121 3,184 3,247 3,312 Inspector 2 Vehicle 2,500 2,550 2,601 2,653 2,706 2,760 2,815 153,590 159,781 164,827 170,034 175,406 180,948 186,666 Fire Inspector 3 145,090 154,231 159,166 164,260 169,516 174,941 180,539 Inspector 3 Supplies 6,000 3,000 3,060 3,121 3,184 3,247 3,312 Inspector 3 Vehicle 2,500 2,550 2,601 2,653 2,706 2,760 2,815 153,590 159,781 164,827 170,034 175,406 180,948 186,666 CARES EMT (.33 FTE) 58,706 60,585 62,523 64,524 66,589 68,720 70,919 CARES M&O 250,000 255,000 260,100 265,302 270,608 276,020 281,541 308,706 315,585 322,623 329,826 337,197 344,740 352,459 Enhanced Services Budget 892,290 918,980 945,067 971,923 999,570 1,028,032 1,057,335 Offsetting Revenues CARES Grant* (100,800) (100,800) (100,800) (100,800) (100,800) (100,800) (100,800) Enhanced Services Net Cost 791,489 818,181 844,266 871,123 898,770 927,232 956,534 Levy Rate for Enhanced Services (assuming 5% annual AV growth) 0.096 0.094 0.093 0.091 0.089 0.088 0.086 31 Table F1: Strategic Plan Summary without Enhanced Services TFD: Base Case Total Reserve Transfers and Operating Expenses 2021 2022 2023 2024 2025 2026 2027 2028 14,440,220 15,355,409 15,845,779 16,352,384 16,875,783 17,416,554 17,975,297 18,552,633 Annual Change > 6.338% 3.193% • Annual average increase over 7 -year period: 3.2%/yr. Table F2: Strategic Plan Summary with Enhanced Services TFD: ENHANCED SERVICES Total Reserve Transfers and Operating Expenses 3.197% 3.201% 3.204% 3.208% 3.212% 2021 2022 2023 2024 2025 2026 2027 2028 14,440,220 16,266,265 16,774,332 17,307,228 17,857,690 18,426,321 19,013,744 19,620,606 Annual Change > 12.646% 3.123% • Annual average increase over 7 -year period: 4.53%/yr. 3.177% 3.181% 3.184% 3.188% 3.192% 32 2.38 2.37 2.28 2.21 2.13 2.25 2.17 2.09 14,440,220 (278,200) 14,162,020 15,355,409 (283,764) 15, 071, 645 15,845,779 (289,439) 15,556,340 16,352,384 (295,228) 16,057,156 16,875,783 (301,133) 16,574,650 17,416,554 (307,155) 17,109, 399 17,975,297 (313,298) 17,661,999 18,552,633 (319,564) 18,233,069 1.80 1.82 1.79 1.76 1.73 1.70 1.67 1.64 2.18 2.14 2.06 1.98 1.91 1.84 1.77 1.70 1,550,108 1,550,108 1,870,128 1,870,128 1,904,103 2,049,083 1,904,103 2,049,083 2,104,438 2,104,438 2,163,083 2,016,471 4,179,554 2,220,588 2,016,471 4,237,059 2,278,423 2,016,471 4,294,894 0.20 0.23 0.22 0.22 0.22 0.42 0.40 0.39 TABLE G: Fire Department Share of City Property Taxes (without enhanced services) 2021. 2022 2023 2024 2025 2026 2027 2028 AV 7,883,057,562 8,277,210,440 8,691,070,962 9,125,624,510 9,581,905,736 10,061,001,023 10,564,051,074 11,092,253,627 Excess Levy 1 Excess Levy 2 Total Excess Levies Excess Levy Rate City General Levy Rate TOTAL Levy Rate Fire Program Expenses Less Fire Operating Revenues Net Fire Expenses Levy to Support the Fire Department Fire Share of General Levy L 82% 85% 87% 89% 91% 93% 95% 97% 33 Table H: Project cost of bonds to rehabilitate/rebuild stations 53 and 54. Proceeds Debt Service Project Bond Issue 2 -VOTED Project Name Debt Amount Average Term Start Year V=Voted Coupon Station53/54 30,000,000 20 3.00% 2025 V 2021 2022 2023 2024 2025 2026 2027 2028 Total Cashflow 30,000,000 6,049,414 0 0 0 0 0 30,000,000 1 2 3 2,016,471 2,016,471 2,016,471 Debt Service Payments Principal 3,450,901 - - - - - 1,116,471 1,149,965 1,184,464 from Voter -Approved Interest 2,598,513 - - - - - 900,000 866,506 832,007 Excess Levy ,L DEBT SERVICE 6,049,414 - - - - - 2,016,471 2,016,471 2,016,471 34