Joint Special Council/BFPD
07/18/22 06:00:PM
Finance
Marc Puckett
Budget
Doc ID: 5078
FIRE AGENDA ITEM
AGENDA MATTER:
SECOND ADOPTION OF THE BARSTOW FIRE PROTECTION DISTRICT'S FINAL ANNUAL BUDGET FOR FY 2022-23 PURSUANT TO HEALTH AND SAFETY CODE SUBSECTION 13893 EXECUTIVE SUMMARY:
Adoption of this resolution fulfills the ministerial requirement to adopt the Fire District budget twice. Per relevant State law (HS 13893), the District Board must first adopt a Preliminary Budget and then adopt a Final Budget at a subsequent meeting for the ensuing Fiscal Year. Attached is the adopted preliminary Annual Budget for Fiscal Year 2022-23 for the Barstow Fire Protection District which the Board previously adopted at its meeting on June 20. The required public notice pursuant to the statute has been published and completed more than two weeks prior to the date of the meeting. The proposed resolution adopting the final Annual Budget is attached and recommended for adoption by the District's Board.
DISCUSSION:
The proposed final annual budget for the Barstow Fire Protection District for FY 2022-23 is presented for the Fire Board’s review and recommended adoption. The proposed Preliminary Budget was presented at the Budget Workshop on June 2, 2022 and the adoption of the Preliminary Budget by the District's Board occurred on June 20, 2022.
The FY 2022-23 Preliminary annual budget for the Barstow Fire Protection District projects revenues of $6,575,950 and estimated operating expenditures of $6,216,506. Including the $1,500,000 transfer in from the Measure Q funding sources, the Fire District’s budget is balanced for fiscal year 2022-23. This transfer amount does not include the additional $4,535,119 in funding approved by City Council for use for Fire services in Measure Q sub-fund 103 for FY 2022-23. The beginning Fire Protection District fund deficit of $(5,117,490) will be reduced by $359,444 to $(4,758,046) during the fiscal year based upon the approved Preliminary annual budget.
In total, 60.7% of annual Measure Q funding sources are provided to the District for the 2022-23 fiscal year. This percentage does not include an additional $500,000 provided to the District from Measure Q funding sources for reduction of the District's accumulated fund deficit. Also, another $738,187 in Measure Q funding sources are used for the lease revenue bonds issued to refinance and lower the cost of the SBCERA debt. Recall that this financing was initiated to lower the annual $832,000 cost of the debt entered into with SBCERA to transfer the District's firefighters from the Other Safety cost group into the County Safety cost group. This debt service funding is included in the Measure Q sub-fund budget.
The transfer of the funding for the annual payment to the Measure Q sub-fund allows the District to partially address the "going concern" disclosure in the District's financial statements and begin the Joint Special Council/BFPD
07/18/22 06:00:PM
Finance
Marc Puckett
Budget
Doc ID: 5078
FIRE AGENDA ITEM
process of stabilizing its finances. Additionally, to assist in balancing the Fire District's budget, all regular overtime is again proposed to be paid out of the Measure Q sub-fund. The annual debt service payments to SBCERA, regular overtime for the Fire District and 9 of the 28 safety personnel are again appropriated in the Measure Q sub-fund as was adopted within the biennial budget covering Fiscal Years 2020-22.
FISCAL IMPACT:
The FY 2022-23 Preliminary Fire Protection District budget including projected revenues of $6,575,950 and appropriations of $6,216,506 were adopted by the Board at its June 20 Board meeting. Relevant details for the recommended adoption of the Final annual budget for fiscal year 2022-23 are contained within the discussion portion of this staff report. The retained fund deficit at the end of the 2022-2023 fiscal year is estimated to be $(4,758,046).
RECOMMENDED ACTION:
Staff recommends that pursuant to the Health and Safety Code requirements, the Barstow Fire Protection District's Board approve Resolution No. __-2022 adopting the Final Barstow Fire Protection District Annual Budget for Fiscal Year 2022-23 (Attachment A) and waive the full reading.