1

South Bay-North Olympia Merger

Preparing for our Future

Objectives:

1) Brief Status Report2) Incident Readiness & Response Staffing

Assumptions for Budgeting;3) Budgeting Estimates for 2015 & 2016,

and4) Four Scenarios for FD7 and FD8.

2

South Bay-North Olympia Merger

Preparing for our Future

FD7 Board Petition

Request MergerReasonsTerms and Conditions

FEBRUARY 2014

FD8 Board

Approve Amend Reject

MAY 2014

FD7 Voters

Approve Reject

NOVEMBER 2014

FD7 and FD8 Boards

Concurrent Resolutions

Environmental Impact Statement andBoundary Review Board Approval

Merger Process: Chapter 52.06 RCWDefinitions: Merging District merges into the Merger District

If approved - If approved -

3

South Bay-North Olympia Merger

Preparing for our Future

North Olympia Fire District 7

&

South Bay Fire District 8

Emergency Services

Integration Plan

2014

Terms and Conditions:• 5 member board

• Emergency Service • Integration Plan

• Vision and decision making• Community connections• Incident readiness & response• Personnel development and

volunteerism• Facilities and equipment• Financial management and

administration• Labor agreements• Performance evaluation

4

South Bay-North Olympia Merger

Preparing for our Future

Incident Readiness & Response Strategy:

“Three-Point Delivery System”

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South Bay-North Olympia Merger

Preparing for our Future

IR&R Staffing Planning:

Daytime Coverage: Stations 7-1 and 8-1 3 FD8 Assistant Chiefs (Career) 3 FD7 Lieutenants (Career) 3 Daytime Firefighters (Career) Volunteers in Dayshift Stipend Program

Night & Weekend Coverage: Stations 7-1, 8-1 & 8-2 Nine shift teams of 10 Volunteers (FF-EMT) Non-shift based Volunteers Shift-based Volunteer Battalion Chiefs

6

South Bay-North Olympia Merger

Preparing for our Future

Revenue & Expense Budgeting 2015-2016:

• Revenue: • Using existing levy/levy rates (RCW 82.55.092) in 2015• Propose $1.50 levy restoration (with 6-year 106% cap) in 2016 for

2017 (Scenario 3)• Generally use existing levels of miscellaneous revenue streams

• Expense:• Comparative evaluation of FD7-FD8 programs• Labors costs: Board members (2 meetings per month)• Labor costs: Career & Volunteer staffing; shift & non-shift based• Training & safety, equipment: optimizing programs for staffing

levels• Operating transfers: estimate (will need to re-evaluate in 2015)

7

South Bay-North Olympia Merger

Preparing for our Future

Scenario 1: FD7 Stand-alone:

• Revenue: • Limited revenues (no levy restoration):

• Need for levy restoration to ($1.500)• Does not include new construction

• Expense:• Limited funding for administrative staff, IR&R staff

2015 2016 2017 2018 2019 2020

Levy $724k $732k $739k $746k $754k $761k

Rate $1.297 $1.260 $1.223 $1.188 $1.154 $1.120

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South Bay-North Olympia Merger

Preparing for our Future

Scenario 1: FD8 Stand-alone:

• Revenue: • “Banked Capacity” from 2008 (AV drop):

• Does not include new construction• Expense:

• Program funding for staffing, operations and capital repairs & replacement programs

2015 2016 2017 2018 2019 2020

Levy $1.445k $1.503k $1.563k $1.626k $1.691k $1.759k

Rate $1.500 $1.500 $1.500 $1.500 $1.500 $1.500

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South Bay-North Olympia Merger

Preparing for our Future

Scenario 2: FD7 Merges Into FD8:

• Revenue: • No adjustment to levy rates (normalized by RCW):

• Does not include new construction• Expense:

• Modest funding for staffing, operations and capital repairs & replacement programs

• Recommend eventual levy rate restoration to $1.500

2015 2016 2017 2018 2019 2020

Levy $2.170k $2.192k $2.213k $2.236k $2.258k $2.281k

Rate $1.425 $1.384 $1.344 $1.306 $1.268 $1.231

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South Bay-North Olympia Merger

Preparing for our Future

Scenario 3: FD7 Merges Into FD8:

• Revenue: • Restoration of levy rate ($1.500) in 2016 for 2017:

• Includes 6-year 106% levy cap • Does not include new construction

• Expense:• Funding for staffing, operations and capital repairs & replacement

programs for 2015-2016

2015 2016 2017 2018 2019 2020

Levy $2.170k $2.192k $2.470k $2.568k $2.671k $2.778k

Rate $1.425 $1.384 $1.500 $1.500 $1.500 $1.500

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South Bay-North Olympia Merger

Preparing for our Future

Scenario 4: FD7 Merges Into FD8:

• Revenue: • FD7 increase levy rate ($1.500) in 2014 for 2015:

• Does not include new construction• Expense:

• Funding for staffing, operations and capital repairs & replacement programs for 2015-2016; need to adjust for less funding 2017-on than Scenario 3

2015 2016 2017 2018 2019 2020

Levy $2.283k $2.306k $2.329k $2.352k $2.376k $2.400k

Rate $1.500 $1.500 $1.500 $1.500 $1.500 $1.500

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South Bay-North Olympia Merger

Preparing for our Future

Comparison of Revenue Scenarios:

2015 2016 2017 2018 2019 2020 $-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

Scenario 1: FD7

Scenario 1: FD8

Scenario 2

Scenario 3Scenario 4