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Tab 3 GNFD ProposalPage 1 of 26 MASTER Executive Summary Greater Naples Fire Control District (GNFD ) is a special fire control district authorized under Florida State Statute 191 to specifically provide fire and emergency services to unincorporated areas of Collier County. Greater Naples was originally established in 1961 as East Naples Fire Control and Rescue District and 1971 as Golden Gate Fire Control and Rescue District . On November 4, 2014 the East Naples Fire Control and Rescue District was merged with the Golden Gate Fire Control and Rescue District to form the Greater Naples Fire Rescue Distric t (GNFD). GNFD currently provides fire suppression, fire and lif e safety (prevention ), emergency management, hazardous materials, technical rescue, first response paramedic services, and other associated support functions to serve and protect the citizens of the district as well as the Greater Naples Community of Collier County . The D istrict currently provides service s to 285 square miles and serves more than 150,000 residents , respond ing to more than 17 ,1 00 calls annually and operates from ten (10) fire rescue facilities, and several administrative and support locations. These services are headed by a Fire Chief with 37 years of experience, working closely with a Board of eight (8) elected Fire Commissioners , firefight ers represented by the International Association of Firefighters Local 2396 and civilian workforce totaling more than 160 operations and administrative personnel. Proposal (Management Contract) GNFD proposes a management services contract relative to the Isles of Capri, Ochopee Fire District (item B3 / Alligator Alley), and Collier Fire District (District One) Service Area. The management service contract will be administered throughout the life of the agreement with no additional management services fees. This proposal identifies specific areas of operation and addresses funding / budget issues as understood. In areas where savings can be realized through the removal of redundant services and / or inefficiencies in operation this proposal will identify them accordingly and identify potenti al cost savings to the citizens served within each of the respective areas. This proposal intends to e nsure the cost of operation of each area is born by the taxpayers of that respective area and no unnecessary costs are transferred to the citizens of ano ther district or service area . It is the intent of the GNFD to administer this management services agreement for a period not to exceed three years with an effort to bringing the respective areas into a fully consolidated operation within this time period . This consolidation will occur once the GNFD has utilized the transition period to reduce costs wherever appropriate while still increasing the level of service to all citizens within these districts and/or service areas . Service Locations GNFD currently realizes an average response time of 6.77 minutes from ten (10) locations as reported in the March, 2015 monthly statistics report to the Board of Fire Commissioners . Location Staffing Station Number Alligator Alley (MM63) Firefighters (9) 63 Paramedics (3) Isle of Capri Fire Chief 90 Administrative Assistant (1) Firefighters (9) Collier Fire District (District one) No Stations Page 2 of 26 MASTER Service Levels Staffing This proposal provides for all current full time staff members as of April 16, 201 5 to maintain employment during the term of the management contract with respect to appropriate collective bargaining agreements and the policies / procedures of GNFD . The ir employment status will not change relative to these individuals unless issues are identified relative to their individual performance and abilities to meet desired performance expectations as determined by the GNFD . The GNFD will continue to provide existing services being delivered to taxpayers within each of the respective service a reas. It is understood these service levels include fire and life safety (prevention ), fire marshal, fire suppression, advanced life support emergency medical, fire, rescue and medical training, and marine services. Fire Marshal / Fire Inspection Currentl y GNFD provides fire marshal services to the Isles of Capri , and Ochopee Fire Districts , and Col l ier County District One by way of Interlocal Agreement that shall remain in place . The proposal presented does not require the transition of these services to another provider and will not result in an increase in funding to accomplish. These services will be provided through the utilization of existing GNFD staff members. Since Oct ober 1 st of 2014 GNFD has facilitated 98 plans review projects with the Isle of Capri and Ochopee Fire Districts , and Collier County District One . GNFD has also conduced 15 0 fire inspections within the Collier County District One . Since beginning to provi de fire inspection services to these areas, GNFD has conducted inspections on 63 permitted projects and 21 existing facilities. Within the Ochopee Fire District GNFD has conducted inspections on 23 permitted projects and three existing facilities. It is also significant to note that the GNFD conducts nearly 6,000 life safety activities annually throughout its service area. Marine Services GNFD will continue to provide services utilizing the marine services and resources currently available and operated by the Isle of Capri Fire District. ItAisAunderstoodAtheAcurrentA“BoatA90”AhasAbeenAdeemedA unserviceable and the Isles of Capri Fire District is utilizing a vessel provided by Collier County EMS. GNFD will continue to provide marine services under any coop erative agreement currently in place. GNFD will however, establish a long -term remedy to the situation by working with Collier County Bureau of Emergency Services during any agreement period. If a final consolidation is agreed upon the GNFD will include as part of its long term apparatus replacement program, the acquisition of an adequate marine vessel capable of providing firefighting, dive rescue and ALS service. Training Programs GNFD will provide fire and EMS training services to the staff of Isle of Capri, and, Ochopee Fire Districts. These services will be provided utilizing existing staff members of GNFD and Collier County EMS, under a current cooperative agreement , as well as any members of Isl es of Capri and Ochopee Fire Districts. GNFD currently staffs a Training and Safety Captain providing suppression based training and a Lieutenant who serves as the Advanc e Life Support Program Manager. Where redundancies in training Page 3 of 26 MASTER effort s are identified staff members will be reallocated to improve service del ive ry within other areas of the service areas. Advanced Life Support G NFD operates a first response Advanced Life Support (ALS) paramedic program. As part of this proposal GNFD will continue the provision of this service level into the additional areas at no additional costs to the taxpayers of those areas . As previously mentioned GNFD currently staffs an ALS Program Manager who works in concert with Collier County EMS to coordinate training and protocol implementation, and utilizes the same medical director and protocols as Collier County EMS. The utilization of a common medical director e nsures there will be no lapse in medical protocol an d an increase in the continuity of care as patients are transferred from first response personnel to transport personnel. The presence of a common medical director furthermore reduces the probability of errors occurring in patient care and reporting . This fact also reduces the cost of service pro vision as a common medical director allows for an economy of scale to be realized. Fleet Management / Facilities G NFD currently conducts fleet management and facilities services within its daily operational activities. GNFD will incorporate existing fleet management activities into its operational plan and will be maintained according to the existing GNFD fleet policies and procedures. GNFD will incorporate the maintenance of fire stations facilities into its existing opera tional plan. Additionally, all fleet and facilities assets will be incorporated into the GNFD capital improvement plan upon full consolidation . Such costs associated with maintenance and capital improvements will be incorporated into the existing propos al amounts. Emergency Management / Disaster Preparation GNFD works in cooperation with Collier County Bureau of Emergency Services to provide emergency management and disaster preparation services. GNFD will incorporate all areas as part of this proposal into its existing emergency management and disaster preparation activities. The inclusion of these services into existing operations will not require any additional funding. This will however, enhance operational continuity, reduce redundancies and maximize resource capabilities. Benefits to County Taxpayers The taxpayers of these identified service areas will benefit through the establishment of a single manag ement structure and an increase in the re alization of efficiency gained when economies of scale are utilized in making management decision. Under the current format , three (3 ) distinctly different decision process es must be made in the delivery of emergency services to these respective areas. T axpayers will also benefit through this proposal by removing artificially imposed boundaries for each of these respective areas . This proposal will allow for the identification and subsequent removal of redundancies in service. As evidenced by the attach ed station location maps and identified coverage areas of each station there exist s the opportunity to re -evaluate current and future station locations in an effort to achieve a more comprehensive deployment model , not currently possible due to independent organizational deployment strategies and jurisdictional boundaries . The taxpayers served by this proposal will also benefit through the enhancement of common medical direction and operational procedures. Page 4 of 26 MASTER Long -Term Sustainability Five Year Growth Plan (revenue & expenditures) Revenue and growth expenditures are contained within the economic modeling provided for each of the proposed service locations later in this proposal. Capital Replacement / Improvement The GNFD maintains an adequate contingency f und which allows for the replacement of capital equipment. As part of the recent consolida tion of East Naples and Golden G ate Fire Districts, the GNFD has established a formal capital improvement plan to address long -term fleet and facility needs . Current Capital Equipment Facility Location Station 20 4798 Davis Boulevard Station 21 11121 Tamiami Trail East Station 22 4375 Bayshore Drive Station 23 6055 Collier Boulevard Station 24 2795 Airport Pulling Road North Station 70 4741 Golden Gate Parkway Station 71 100 13th Street Southwest Station 72 3820 Beck Boulevard Station 73 14565 Collier Boulevard Station 75 (Owned by Collier County) 4590 Santa Barbara Boulevard Description Make/Model Vin# E20 2004 Ferrara Pumper 1F94544214H140199 E21 2009 Ferrara 1F94047269H140636 E22 2004 Ferrara Pumper 1F94544244H140200 E23 2007 Ferrara Pumper 1F94044287H140462 E24 2000 E -One Pumper 4ENGAAA81Y1000827 E70 2003 Pierce Dash 4P1CT02E43A003518 E71 1999 Pierce Dash 4P1CT02E3XA001091 E72 1998 Pierce Dash 4P1CT02E7WA000732 E73 2007 Pierce Velocity 4P1CV01A77A007898 BR21 2003 Freightliner Brush 1FVKBXBSX3HK69675 BR22 1997 AM General M925 NLOAP7 C525 -00480 BR70 2008 Ford F550 1FDAX57R18EB85462 BR71 1996 Southerncoach Freightliner 1FV2JLCB1VH833663 BR72 1967 REO 6x6 04E62870052510084 BR73 1969 Kaiser 6x6 04E79669042515147 P21 2003 Ferrara Pumper 1F93542233H140198 Page 5 of 26 MASTER P22 2001 E -One Pumper 4ENGBAAA8X11000812 P70 1988 Pierce Arrow 1P9CA02D0JA040706 P71 2006 Pierce Contender 4P1CCOLM45A005037 P72 1995 Pierce Dash Telesquirt 4P1CT02D3SA000583 WT20 2015 Freightliner Tanker 1FVHCYCY0FHGF1300 WT70 2007 Pierce Kenworth Tanker 2NKMLZ9X97M183858 WT71 2002 Pierce International Tanker 1HTGLAHT52H521426 RE75 2006 Pierce GMC Minipumper 1GDE5E3226F427277 AT21 1999 Dodge Brush Truck 4x4 1B7MF3360XJ627836 SQ20 2005 Ford Expedition 1FMPU15595LB04131 SQ72 2004 Ford F250 Pickup 4x4 1FTNW21L84EB32831 T72 2003 Pierce Dash Tower 4P1CT02E53A003477 Recon21 2006 ATV 4XAMN50A06A903168 Recon21 Trailer Triton Trailer 4TCSU18886H823527 Air72 1999 Ford Box Van 1FCKE39L5XHA20393 CH20 2013 Chevrolet Tahoe 4x4 1GNSK2E00DR307667 CH72 2005 Ford F250 4x4 Diesel 1FTSX21P95EA39465 SPT27 2007 Ford Crown Victoria 2FAFP73V17X160847 CH23 2007 Dodge Durango 1DH8HD48237F562908 CH70 2005 Ford Expedition 1FMPU16515LA61600 BC70 2010 Ford F150 1FTEX1EW8AFD12246 BC20 2008 Dodge Ram 2500 SLT 3D7KS28A18G16946 CA22 2005 Ford Explorer 1FMDU73K55ZA48846 IT 1999 Ford Ranger 4x4 1FTZR15V8XPA70144 2004 Ford Crown Victoria 2FAFP73W14X180049 FM 2004 Ford Explorer 1FMZU73W24ZA55101 CA70 2002 Ford Explorer 1FMZU73W42UC40759 2002 Crown Victoria 2FAFP71WO2X129447 2014 Ford Explorer NMOLS7F78E1149582 EMS25 2007 Dodge Durango 1D8HD48257F562909 I20 2001 Ford Ranger 1FTZR15E31TA94527 MA21 2003 Ford Escape 1FMYU92113KCO4487 I28 2004 Ford Ranger 1FTZR45E94PA96940 I25 2008 Ford Escape 1FMCU93168KA49922 I26 2003 Ford Explorer 4x4 1FMZU72K13UB18067 2004 Ford Crown Victoria 2FAFP73W84X180050 U23 1993 Ford Bus 1FDWJ65C7PVA34930 I71 2003 Ford Ranger 1FTZR45E83PA90583 I72 2003 Ford Ranger 1FTZR45E63PA90582 Safety Trailer 2004 Scotty RV 1SSTT35T4511SS9893 2014 Ford Transit 1FM5K8B85EGC60387 Page 6 of 26 MASTER 4x6 Trailer 6x12 Trailer 5GLBE12152C000933 32' Trailer 1WC200R3573056737 SRU70 2004 Ford F350 1FTWW33P34EC42101 SRU71 1987 American General Wrecker U224 2005 Express Trailer 5GLBE182X5C000950 Utility Trailer Triple Crown 6x12 1XNU6X12391027068 SPT20 2002 E250 Van 1FTNS24L92HA26343 SPT24 1999 Ford F350 1FDWF37LXXEC62997 CA73 2003 E250 Van 1FTNS24L93HA71493 Maint 1998 Ford Ranger 1FTZR15X5WPB12429 SU70 2002 F250 1FDNF21F12ED71298 SU71 2007 F250 1FDSX21P37EA47401 Fork Lift Tilt Deck Trailer 2006 Anderson Trailer 4YNBN16266C040897 Contingency Funds Upon the merger of East Naples and Golden Gate Fire Districts, the leadership team has established a contingency fund capable of e nsuring the sustainability of the GNFD operation. A priority in the merger of these areas into the GNFD operation is to e nsure each of these service providers establishes and maintains an acceptable contingency fund. Fire Station 63 (Alligator Alley) Funding Upon execution of the contract, the leadership of GNFD will begin the process of working with the Florida Dep a rtment of Transportation (FDOT) and the appropriate members of the Florida Legislat ure to secure a funding mechanism to support the impact directly attributed to the operation of the Alligator Alley Station 63 . It is the belief of GNFD that working in coo perationAwithAtheABrowardACountyASheriff’sA Fire Rescue Division and Broward County Government that an increase in toll to v ehicles travelling in Interstate 75 (Alligator Alley) can be established and will serve as a long -term funding source to support the long -term operations of Station 63. Future Planning Considerations Prior to consolidation, the East Naples and Golden Gate Fire Districts each realized a split Insurance Services Organization (ISO) rating of 4 /9. On May 27 th of this year the Insurance Ser vices Organization (ISO) is scheduled to conduct an evaluation of the consolidated district. With the consolidated services of both entities it is the belief of the GNFD leadership that a n improved ISO rating is at tainable . Any improved ISO rating is sig nificant to the current and future taxpayers of the community in that it will have a positive impact upon the insurability of commercial and residential properties within the district. Long -T erm T ransition C onsideration s Transition Plan Page 7 of 26 MASTER Upon execution of a management services agreement, GNFD staff, elected officials and Union partners will immediately begin to work with B O CC assigned personnel to begin the transition process for management of the Isle of Capri and Collier District One , as well as the Alligator Alley Station 63 operation. As part of the consolidation of East Naples and Golden Gate Fire Districts, the current leadership team of GNFD developed and implemented a twenty -nine (29) page merger transition plan. Upon execution of a contract the GNFD will immediately begin to develop a similar document to serve as a guide during this transition as well. The following timeline depends upon contract execution and may adjust accordingly. Task / Activity Date Contract Execution May 1, 2015 Transition Planning Meeting May 1 1 , 2015 Transition Planning Meeting June 1, 2015 Transition Planning Meeting June 15, 2015 Transition Planning Meeting July 6 , 2015 Transition Planning Meeting July 20 , 2015 Transition Planning Meeting August 3 , 2015 Transition Planning Meeting August 1 7 , 2015 Transition Planning Meeting September 7 , 2015 Transfer of Assets September 21 , 2015 Assumption of Operation October 1, 2015 The current management teams of these respective areas will continue to provide oversight of daily operations until October 1, 2015. During this transition period the leadership of each service location will participate in bi -weekly leadership meetings to facilitate a seamless transition. The leadership team of GNFD successfully consolidat ed the East Naples and Golden Gate Fire Districts through the use of a similar transition period. The transition period for this project will follow a similar process (Appendix A). TheA“upfront”AcostsAassociatedAwithAtheAoperationAofAtheA lligatorA lleyAStationA63AwillA initially be incurred by the current GNFD normal budgetary activity and reimbursed after thirty (30) days of operation . GNFD will submit monthly reimbu rsement requests to the BOCC who is currently the legal recipient of the Florida DOT grant for this location. GNFD will operate the Alligator Alley facility as a stand -alone business activity that will capture all costs directly associated with its staffi ng and operation. As a Special Fire District established under Florida Statute, the GNFD serves as a special purpose governmental unit. As part of its responsibilities as special government, GNFD successfully staffs the functions of budget management, hum an resources, accounting, purchasing, and payroll. Additionally, as a unit of local government all aspects of the GNFD areAsubjectAtoAFlorida’sA“SunshineALaw;”AATheA GNFD recently demonstrated the ability to effectively and efficiently operate these functi ons through the successful consolidation of the East Naples and Golden Gate Fire Control and Rescue Districts into a single organization. The administrative team of GNFD has also successfully developed and managed a variety of grants as demonstrated in th e table below . Grant Program Amount As East Naples Fire 2003 Assistance to Firefighters Grant Program (AFG) 49,322.00 Page 8 of 26 MASTER 2008 Assistance to Firefighters Grant Program (AFG) 31,078.00 2011 Staffing for Adequate Firefighters Program 1,726,542.00 20 1 1 Fire Prevention and Safety Grant 55,656.00 As Golden Gate Fire 2003 Fire Prevention and Safety Grant 1,611.00 2005 Fire Prevention and Safety Grant 4,207.00 2006 Assistance to Firefighter s Grant Program (AFG) 82,030.00 2008 Assistance to Firefighters Grant Program (AFG) 83,520.00 2011 Assistance to Firefighters Grant Program (AFG) 136,792.00 2011 Staffing for Adequate Firefighters Program 1,417,935.00 Tota l $3,588,693.00 GNFD currently staffs one (1) Systems and Network Administrator and one (1) Information Technology Technician position to support the district emergency and non -emergency activities. Th ese staff member s are responsible for keeping the Districts 10 fire statio ns, Administrative Headquarters, Fleet facilities and the Fire and Life Safety facilities connected through the internet, servers, and telephone systems, along with keeping access to the community available through the website and social media . The Networ k System Administrator is charged with keeping the Information Technology needs current and connected, through the management of hardware and software contracts and enhancements. The IT Technician focuses on software and programming needs of the various Di visions for maintaining the District’s hardware and software needs. As part of the recent consolidation of East Naples and Golden Gate th e information technology team successfully consolidate d the records management and data needs of two separate systems. This merger specifically included two different email systems , records management and financial platforms. The GNFD currently operates a full -service fleet management facility located at 5665 Warren Street in Naples. The Fleet Services Branch current st aff allocation is four (4) fleet technicians and is supported by an administrative assistant. The D istrict also staffs two (2) logistics technicians to support the District’s facilities management and inventory control functions. In addition to supporting the fleet needs of GNFD , the fleet services team provides services to Marco Island Fire Rescue and the Immokalee Fire Control District . I nventory control and asset management activities are supported by the Districts use of Mas9 0 and Filemaker. The District utilizes "ImageTrend" for records management, which is another example of the current cooperative relationship with Collier County Government ; theADistrict’sAImageTrendAplatformAisA partitioned into the Collier County system, reducing costs while enhancing interoperability among the agencies. Page 9 of 26 MASTER Impact on Employees GNFD will continue to maintain the employment of current employees as members of their respective organizations during year one of the management and transition period. During the remaining period of the contract GNFD will work to establish the two collective bargaining unit s as a single collective bargaining unit. Until the full merger of the two different bargaining units under one agreement county employees w ill not be eligible for promotion within the GNFD. It must be noted the collective bargaining unit for GNFD (IAFF Local #2396) successfully worked with GNFD leadership to bring two different bargaining units into a single Local prior to the East Naples an d Golden Gate merge r . Relative to daily operations, GNFD will manage each of these employees under the terms of the collective bargaining agreement (CBA) under which they were initially employed. However, outside of the CBA all employees will be managed u nder the policies and procedures of GNFD . During the term of this agreement current staff will continue to realize the pay and benefits structures of any CBA under which they are covered. In addition, t hese employees will maintain their seniority levels within their respective agencies . During the transition, a s vacancies occur within these positions replacement personnel will be hired under the collective bargaining agreement of GNFD . In the event any labor management issues arise , including negotiations, grievances or conditions arise that are subject to bargaining, GNFD management will assume responsibility, representing the interests of Collier County as well as the Fire District. The GNFD management team will assume all responsibility to reach a labor agreement with affected employees entering into th e consolidated fire district. Cost of Services ISLE OF CAPRI ECONOMIC MODEL – EXISTING MANAGEMENT STRUCTURE In order to properly analyze the financial implications of various management alternatives for providing fire rescue service to the residents of the Isle of Capri Municipal Services Taxing Unit (IOC MSTU), in particular the impact on each taxpayer, an economic model was developed (Table 1). Before discussing the implications of the model, it is first necessary to examine the underlying assumptions and data used to develop it. Figure 1 shows Collier County population growth from US Census Bureau figures for the 1980, 1990, 2000 and 2010 census events. Also shown from census data is the unincorporated population for 2010. Estimates of population growth in the county are shown for years 2013 through 2020. The 2013 and 2014 estimates for countywide and unincorporated Collier County are based upon BEBR estimates from April, 2014. Popu lation projections through 2020, show that most of the growth will occur within unincorporated Collier County. More specifically that growth will occur within those areas protected by both independent and dependent fire control districts. Population grow th drives housing demand and associated expansion of service industry businesses, all of which require fire protection services. Since our fire service personnel are cross -trained to provide emergency medical services (EMS) they serve the dual purposes of taking care of the medical needs of our growing population as well as responding to and protecting the structures they occupy and visit. Page 10 of 26 MASTER Figure 1 – Collier County actual and estimated total and unincorporated population from US Census Bureau and Univers ity of Florida Bureau of Economic and Business Research (BEBR) A key factor in the financial analysis of any emergency service provider through time is how that service is funded. With the exception of the new Alligator Alley station which is funded throu gh a Florida DOT grant under an interlocal agreement with Collier County, the primary source of revenue for both dependent and independent fire rescue districts is ad valorem tax revenue. Therefore, the economic outlook of Collier County is critical to de termining whether sufficient revenue will be available over the next five or more years to support the services necessary to respond to fire rescue and EMS calls for service as the county grows. To that end, several sources of information were utilized to build a picture ofACollierACounty’sAeconomicAhealth;AAFirst…AlocalAsalesAtaxAisAanAgoodAindicatorAofAtheAhealthAandAprojectedA performanceAofAaAcommunity’sAeconomyAasApeopleAincreaseAorAscaleAbackAdisposableAincomeAspendingAinA anticipation of economic tren ds. Figure 2 is a chart showing Florida state sales tax generated in Collier CountyAfromA2004AthroughA2014AwithAprojectionsAforA2015;AATheseAdataAwereAreportedAbyAFlorida’sA DepartmentAofARevenue’sAOfficeAofATaxAResearchA(JulyA1…A2014); 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 1980 1990 2000 2010 2020 PO P U L A T I O N TOTAL COUNTY (CENSUS) TOTAL COUNTY (ESTIMATE) UNINCORPORATED (ESTIMATE) UNINCORPORATED (CENSUS) Page 11 of 26 MASTER Figure 2 – Collie r County state sales tax total revenue and distribution of shared ½ cent revenue showing county commission and total shared sales tax revenue through time (source: Florida Department of Revenue Office of Tax Research, July, 2014) Note the decline in sales tax revenue prior to the actual depth of the national recession and the rebound in 2010, well before most analysts stated that our economy was recovering. The trend has been increasingly positive since recovering in 2010 and the rate of spending has signi ficantly increased over the last three years with the expectation that the trend will continue in a positive direction for the model period through 2020. The State of Florida sales tax rate is 6% and, while Collier County has not adopted a local option sa les tax, this data serves as a separate indicator that the economy is recovering and supports the property tax projections that are critical to the models used for this proposal. Figure 3 shows total taxable property value for Collier County from the State of Florida revenue estimating conference of March 4, 2015. The total county taxable value and the rate of change projected for 2015 through 2019 are used in the economic model shown in Table 1 and subsequent models to derive ad valorem revenue based upon various millage scenarios for areas under consideration in this proposal. The rates of change for countywide property tax value were applied to taxable value for the Isle of Capris fire MSTU and various other districts illustrated in other models in this proposal. Taxable value for the IOC MSTU is taken from the FY 15 adopted budget document which shows a total taxable value of $538,981,777 for a 4.85% increase over the prior year versus a countywide taxable value increase of 6.57%. In order to conserva tively estimate future ad valorem revenue from IOC properties, a ratio was developed based upon the countywide versus IOC rate of property value increase and then applied to the countywide projection supplied by the state revenue estimating conference. Th us, for purposes of the economic model in Table 1, taxable value within the IOC MSTU is increased at a rate of 74% of that for the entire county. $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2002 2004 2006 2008 2010 2012 2014 2016 SH A R E D R E V E N U E ( T H O U S A N D S ) ST A T E S A L E S T A X R E V E N U E ( T H O U S A N D S ) STATE SALES TAX SHARED REVENUE (1/2 CENT) COUNTY PORTION Page 12 of 26 MASTER Figure 3 – Taxable value for Collier County; actual through 2014 with projections through 2020 (source: Stat e of Florida revenue estimating conference March 4, 2015) Other economic variables used in the model include an estimate for inflation of 2% per year. That is, it is assumed for modeling purposes that the cost of goods and services needed to provide servi ces to the MSTU will increase at a rate of 2% per annum. Additionally, it is also assumed that salary expenses will increase at a rate of 2% annually. A further personnel services factor of 1% is applied in the expenditure portion of the model to account for increases in hea lth ca re and other personnel cost such as workers compensation that may increase at a rate greater than 2% each year. The net effect is a modeled increase in personnel costs of 3% per year. Ad valorem tax revenue is budgeted each year at 100% of the taxable value multiplied by the applicable millage rate. State law requires that at least 95% of that revenue is to be budgeted against expenditures. However, in many instances once the fiscal year is closed out it becomes apparent that the actual revenue received is greater than 95%. In order to determine how much of the ad valorem revenue estimated each year would be expected to offset expenditures for modeling purposes the FY 2013 budgeted versus actual revenue figures were used. The Collier County adopted budget for FY 2015 shows $971,291 in actual ad valorem revenue for FY 2013 versus an adopted budget figure of $1,031,900 as shown in the Collier County FY 2013 adopted budget. This gives a figure of 96% for actual versus expected w hich is used for years one through five in the model. Various other revenue sources as identified from Collier County budget documents are shown in the model in the revenue section. Several of these are expected to mirror inflation while some may combine both a growth (population based) and inflation factor. Permit fees for example increase at a rate that includes both growth and inflation as new properties are built. The growth factor is based upon the growth in population in unincorporated Collier Coun ty as discussed earlier. This may overestimate revenue from this source in the event that growth within the MSTU is less than the unincorporated county as a whole or vice versa. No population figures or projections were available -15 -10 -5 0 5 10 15 20 25 30 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 2000 2005 2010 2015 2020 RA T E O F C H A N G E ( P E R C E N T ) TA X A B L E V A L U E ( M I L L I O N S ) ACTUAL PROJECTED RATE OF CHANGE Page 13 of 26 MASTER specifically for the MST U. It is assumed that the transfer of funds from EMS and Collier County District One (for fire protection services) would continue. Cash carried forward for the base year of the model, FY 2014/15, of $229,200 is derived from the Collier County FY 2015 ado pted budget as are budget figures for other expenditures shown in the expenditure section of the model. Expenses include personnel services, operating and current equipment as well as the transfer to both the property appraiser and tax collector for their services in support of the MSTU. Equipment is expected to be replaced on an annual basis to some degree. Therefore, the current equipment item is increased each year by an inflation factor. Operating expenses include a transfer to the county general fu nd for services provided to the MSTU by general fund departments such as Human Resources, Information Technology, Facilities, Fleet and others. Other information examined for this particular model includes an IOC three year budget projection prepared by C ollier County staff. Another key assumption of the model in Table 1 as well as other models used in this proposal relates to fund balance policy. Each separate fund needs to include some minimum reserve for cash flow that will cover operating costs for th e initial quarter of the fiscal year before tax proceeds are received and available for disbursement. It is assumed for model purposes that this reserve for the IOC MSTU and other districts considered is three months. That means that the line item labele d minimum reserve, “CashAFlowA+A5%AContingency”AhasAtwoAcomponents;AATheAfirstAcomponentAisAthreeAmonthsAofAanticipatedA ad valorem taxes for the model year. The second is five percent of the bulk of the expenditure budget and is identified as contingency funding for emergency purposes such as hurricane response or some catastrophic event or emergency. The final section of the model shows how various decision units such as the addition of new fire stations and /or personnel would affect the budget through th e modeled period. Estimated costs of these items in the base year are shown and their costs are inflated through time in the event they are added at some future point. For the purposes of Table 1, nothing additional was included although information from IOC suggested that a future additional station might need to be added as a result of growth within the district. The major purpose of the model is to examine the millage rate and subsequent funding needed to support a certain level of service each year. Table 1 holds the millage rate at its current 2.0 mill rate to examine whether or not sufficient funding exists to support the current single fire station operation let aloneAanAadditionalAstation;AAToAthatAend…AtheA“FundABalanceAandAReserveA nalysis”Aport ion of the model is important. The first line shows what the ending fund balance will be each year given the projected revenue available at a certain millage rate and given expenditure rate. The third line illustrates whether the ending fund balance is o ver or under the minimum reserve for the three months cash flow and five percent contingency requirement. Negative numbers in the ending fund balance and over (under) minimum needed reserve lines show where the current funding is insufficient to sustain th e current level of service. Figure 4 illustrates very clearly what happens given no reduction in service level or increase in funding. While the minimum reserve needed increases by approximately $70,000 over the five year period, FY 16 -20, the ending fun d balance is deficient by $150,000 in the first year; a funding deficiency that rapidly increases to almost $600,000 in the final year of the model. The ending fund balance starts out in FY 16 almost $500,000 under the minimum reserve needed; a trend that continues to worsen so that by FY 20 the funding deficiency is approximately $1,000,000 without an increase in revenue or a cut in service level. Page 14 of 26 MASTER Figure 4 – IOC MSTU ending fund balance analysis at current millage rate FY 16 -20 -$1,200,000 -$1,000,000 -$800,000 -$600,000 -$400,000 -$200,000 $0 $200,000 $400,000 $600,000 FY 16 FY 17 FY 18 FY 19 FY 20 ENDING FUND BALANCE MINIMUM RESERVE NEEDED ENDING FUND BALANCE OVER (UNDER) MINIMUM Page 15 of 26 MASTER Table 1 – Isle s of Ca pri Fire Rescue MSTU Economic Model with fund balance analysis under current management model Plan Year Base Year Year 1 Year 2 Year 3 Year 4 Year 5 Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 ECONOMIC VARIABLES Countywide Population 343,519 350,389 357,397 364,545 371,836 379,100 Unincorporated Population 307,076 313,218 319,482 325,872 332,389 338,883 % Increase Over Prior Year 2.00%2.00%2.00%2.00%2.00%2.00% Countywide Taxable Property Value 64,597,000,000 69,793,500,000 74,841,500,000 80,524,700,000 86,202,400,000 94,506,100,000 MSTU Property Value 538,981,777 571,051,193 601,602,432 635,412,488 668,581,020 716,250,847 % Increase Over Prior Year 4.85%5.95%5.35%5.62%5.22%7.13% Salary Level Adjustment 2.0%2.0%2.0%2.0%2.0% Price Level Adjustment 2.0%2.0%2.0%2.0%2.0% REVENUES AND OTHER SOURCES OF FUNDS Ad Valorem Tax Millage Rate 2.00 2.00 2.00 2.00 2.00 2.00 % Increase (Decrease) Millage Rate 0%0%0%0%0% Ad Valorem Tax Revenue - Estimated Actual 1,034,845 1,096,418 1,155,077 1,219,992 1,283,676 1,375,202 Delinquent Ad Valorem - - - - - - Permits 2,000 2,081 2,165 2,252 2,343 2,438 Budget Transfer General Fund 10,000 10,200 10,404 10,612 10,824 11,040 Impact Fees 1,000 1,020 1,040 1,061 1,082 1,104 Lease Purchase Proceeds - - - - - - Other Revenue Sources - - - - - Total Other Revenue Sources 72,300 74,996 77,796 80,705 83,727 86,867 Total Revenues 1,107,145 1,171,414 1,232,873 1,300,697 1,367,403 1,462,069 Utilization of Fund Balance 206,255 178,742 155,089 126,151 99,442 45,917 Total Revenues and Other Sources of Funds 1,313,400 1,350,156 1,387,962 1,426,848 1,466,845 1,507,986 EXPENDITURES Current Personnel 1,048,800 1,080,264 1,112,672 1,146,052 1,180,434 1,215,847 Current Operating 212,500 216,750 221,085 225,507 230,017 234,617 Current Equipment 12,500 12,750 13,005 13,265 13,530 13,801 Equipment Acquired - Lease Purchase - - - - - - Lease Purchase Payments - - - - - - Current Major Capital - - - - - - Current Transfer to General Fund 39,600 40,392 41,200 42,024 42,864 43,721 Current Major Capital - Impact Fees - - - - - - New Fire Station (Equipped)- - - - - Cumulative FTE (Career FF)- - - - - Cumulative New Station Operating - - - - - Engine (Equipped)- - - - - - Other Equipment - - - - - - Other Expenditures or Adjustments - - - - - - Total Expenditures 1,313,400 1,350,156 1,387,962 1,426,848 1,466,845 1,507,986 FUND BALANCE AND RESERVE ANALYSIS Ending Isle of Capri MSTU Fund Balance 22,945 (155,797) (310,886) (437,037) (536,479) (582,396) Minimum Reserve: Cash Flow + 5% Contingency 313,756 330,775 347,113 365,065 382,760 407,469 Ending Fund Balance Over (Under) Minimum (290,811) (486,572) (657,999) (802,102) (919,239) (989,865) DECISION UNITS AND UNIT COSTS New Fire Station (Equipped)- - - - - FTE (Career FF)- - - - - - New Station Operating - - - - - - Engine (Equipped)- - - - - - Cumulative New FTE (Career FF)- - - - - Cumulative New Station Operating - - - - - Cumulative Total FTE (Career FF)9 9 9 9 9 9 Cumulative Number of Stations 1 1 1 1 1 1 Fire Station (Capital)2,466,060 2,515,381 2,565,689 2,617,003 2,669,343 2,722,730 FTE (Operating)65,331 66,638 67,971 69,330 70,717 72,131 Per New Station (Operating)185,000 188,700 192,474 196,323 200,249 204,254 Engine (Equipped)375,000 397,311 418,568 442,077 465,140 498,287 Page 16 of 26 MASTER ISLE OF CAPRI ECONOMIC MODEL – GREATER NAPLES FIRE RESCUE DISTRICT MANAGEMENT PROPOSAL The Greater Naples Fire Rescue District (GNFD) proposes absorbing the Isle of Capri MSTU into its service area beginning with fiscal year 2016 and an effective date of October 1, 2015. The economic model shown in Table 2 depicts the changes proposed as part of this proposal. The same assumptions are used for population and taxable value change through time. All other revenue sources are expected to be maintained as in Table 1 under the current management model. GNFD proposes to manage the IOC MSTU through an interlocal agreement with the Collier Cou nty BOCC for a period not to exceed three years after which IOC will be incorporated through legislative action within the boundaries of GNFD. During the interlocal management period, the millage rate would remain at the current 2.0 mils for the first yea r and gradually reduce to 1.50 mils to match the current Millage rate of GNFD. The net effect of this proposal is seen in Figure 5 showing an analysis of ending fund balance and ability of the district to fund a minimum reserve for cash flow of three mont hs and a five percent contingency. Figure 4 – IOC MSTU ending fund balance analysis under GNFD management with decreasing millage rate beginning in FY 18 Note that for the first three years, under the interlocal proposal, the ending fund balance increa ses each year and the D istrict actually generates more than the minimum reserve needed. The ending fund balance decreases in the final two years as the IOC properties are absorbed within the GNFD independent district at the reduced millage rate of 1.5 mil s . However, this just means that fund balance is essentially depleted in year five at the estimated property values for the IOC district. GNFD staff would carefully monitor these trends and either reduce expenses or seek alternative funding sources as ne eded in out years. In any case, it is important to note that for each of the five years that the IOC territory is under GNFD management, the ending fund balance is positive. -$200,000 -$100,000 $0 $100,000 $200,000 $300,000 $400,000 FY 16 FY 17 FY 18 FY 19 FY 20 ENDING FUND BALANCE MINIMUM RESERVE NEEDED ENDING FUND BALANCE OVER (UNDER) MINIMUM Page 17 of 26 MASTER Central services cost allocation costs paid to Collier County for services such a s Human Resources and Information Technology were removed from the IOC MSTU station operating costs as those services would no longer be needed when GNFD assumes operational and administrative control of the station. GNFD currently provides those services in support of its nine fire stations and there would only be a small incremental cost to absorb one more fire station within the overall operation of GNFD. It is assumed that most other station operating costs would continue. For example, various utilit ies and insurance costs would still be present as would various maintenance costs associated with operation of the IOC station. Transfer to the Tax Collector and Property Appraiser would also continue as currently budgeted. All equipment currently assigne d to the IOC station would be transferred to ownership of GNFD upon activation of the interlocal agreement for management services with GNFD. The current MSTU advisory board would remain in effect until the district is absorbed through legislative action within the GNFD independent district. Page 18 of 26 MASTER Table 2 – Isle s of Capri Fire Rescue MSTU Economic Model with fund balance analysis under Greater Naples Fire Rescue District management model Plan Year Base Year Year 1 Year 2 Year 3 Year 4 Year 5 Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 ECONOMIC VARIABLES Countywide Population 343,519 350,389 357,397 364,545 371,836 379,100 Unincorporated Population 307,076 313,218 319,482 325,872 332,389 338,883 % Increase Over Prior Year 2.00%2.00%2.00%2.00%2.00%2.00% Countywide Taxable Property Value 64,597,000,000 69,793,500,000 74,841,500,000 80,524,700,000 86,202,400,000 94,506,100,000 MSTU Property Value 538,981,777 571,051,193 601,602,432 635,412,488 668,581,020 716,250,847 % Increase Over Prior Year 4.85%5.95%5.35%5.62%5.22%7.13% Salary Level Adjustment 2.0%2.0%2.0%2.0%2.0% Price Level Adjustment 2.0%2.0%2.0%2.0%2.0% REVENUES AND OTHER SOURCES OF FUNDS Ad Valorem Tax Millage Rate 2.00 2.00 2.00 1.75 1.50 1.50 % Increase (Decrease) Millage Rate 0%0%-13%-14%0% Ad Valorem Tax Revenue - Estimated Actual 1,040,235 1,102,129 1,161,093 1,073,053 967,771 1,036,773 Delinquent Ad Valorem - - - - - - Permits 2,000 2,081 2,165 2,252 2,343 2,438 Intergovernmental(Collier FD/EMS)55,800 58,054 60,399 62,839 65,378 68,019 Interest & Miscellaneous 3,500 3,641 3,788 3,941 4,100 4,266 Budget Transfer General Fund 10,000 10,200 10,404 10,612 10,824 11,040 Impact Fees 1,000 1,020 1,040 1,061 1,082 1,104 Lease Purchase Proceeds - - - - - - Other Revenue Sources - - - - - Total Other Revenue Sources 72,300 74,996 77,796 80,705 83,727 86,867 Total Revenues 1,112,535 1,177,125 1,238,889 1,153,758 1,051,498 1,123,640 Utilization of Fund Balance 200,865 (109,364) (141,091) (25,062) 108,981 69,535 Total Revenues and Other Sources of Funds 1,313,400 1,067,761 1,097,798 1,128,696 1,160,479 1,193,175 EXPENDITURES Current Personnel 1,048,800 868,119 894,163 920,988 948,618 977,077 Current Operating 212,500 146,500 149,430 152,419 155,467 158,576 Current Equipment 12,500 12,750 13,005 13,265 13,530 13,801 Equipment Acquired - Lease Purchase - - - - Lease Purchase Payments - - - - - - Current Major Capital - - - - - - Current Transfer to General Fund 39,600 40,392 41,200 42,024 42,864 43,721 Current Major Capital - Impact Fees - - - - - - New Fire Station (Equipped)- - - - - Cumulative FTE (Career FF)- - - - - Cumulative New Station Operating - - - - - Engine (Equipped)- - - - - - Other Equipment - - - - - - Other Expenditures or Adjustments - - Total Expenditures 1,313,400 1,067,761 1,097,798 1,128,696 1,160,479 1,193,175 FUND BALANCE AND RESERVE ANALYSIS Ending Fire Rescue / Impact Fee Fund Balance 28,335 137,699 278,790 303,852 194,871 125,336 Minimum Reserve: Cash Flow + 5% Contingency 228,418 229,751 240,934 227,656 211,546 224,525 Ending Fund Balance Over (Under) Minimum (200,083) (92,052) 37,856 76,196 (16,675) (99,189) DECISION UNITS AND UNIT COSTS New Fire Station (Equipped)- - - FTE (Career FF)- - - - - - New Station Operating - - - - - - Engine (Equipped)- - - - - - Cumulative New FTE (Career FF)- - - - - Cumulative New Station Operating - - - - - Cumulative Total FTE (Career FF)9 9 9 9 9 9 Cumulative Number of Stations 1 1 1 1 1 1 Fire Station (Capital)2,466,060 2,515,381 2,565,689 2,617,003 2,669,343 2,722,730 FTE (Operating)65,331 66,638 67,971 69,330 70,717 72,131 Per New Station (Operating)185,000 188,700 192,474 196,323 200,249 204,254 Engine (Equipped)375,000 397,311 418,568 442,077 465,140 498,287 Page 19 of 26 MASTER COLLIER COUNTY FIRE CONTROL MSTU TheACollierACountyAFireAControlAMSTUAdistrictA(“DistrictAOne”)AisAaAdependentAdistrictAofAtheACollierACountyA Board of County Commissioners and has no fire department of its own unlike the Isle of Capri and Ochopee dependent fire districts. Residents recei ve fire protection services through a contractual relationship with various dependent and independent fire control districts. In the FY 15 BOCC adopted budget, the Isle of Capri MSTU receives 12.01% of the CCFCD revenue stream ($52,800) and the Ochopee MS TU receives 29.33% of the revenue ($77,400) via contract. With the merger of the Golden Gate and East Naples independent fire control districts, the new Greater Naples Fire Rescue District now receives 58.66% ($154,800) of the revenue. The only other exp enditures of the district are transfers to the Property Appraiser and Tax Collector as well as a transfer for allocated services provided to the district by general fund departments. Table 3 – Economic model for Collier County Fire Control District under current management structure Table 3 is an economic analysis of the next five years assuming no change in management. The current millage rate is 2.0 mils . Taxable value for the CCFCD MSTU is taken from the FY 15 BOCC adopted Plan Year Base Year Year 1 Year 2 Year 3 Year 4 Year 5 Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 ECONOMIC VARIABLES Countywide Population 343,519 350,389 357,397 364,545 371,836 379,100 Unincorporated Population 307,076 313,218 319,482 325,872 332,389 338,883 % Increase Over Prior Year 2.00%2.00%2.00%2.00%2.00%2.00% Countywide Taxable Property Value 64,597,000,000 69,793,500,000 74,841,500,000 80,524,700,000 86,202,400,000 94,506,100,000 MSTU Property Value 153,113,391 160,370,966 167,218,806 174,710,208 181,978,153 192,314,512 % Increase Over Prior Year 3.86%4.74%4.27%4.48%4.16%5.68% Salary Level Adjustment 2.0%2.0%2.0%2.0%2.0% Price Level Adjustment 2.0%2.0%2.0%2.0%2.0% REVENUES AND OTHER SOURCES OF FUNDS Ad Valorem Tax Millage Rate 2.00 2.00 2.00 2.00 2.00 2.00 % Increase (Decrease) Millage Rate 0%0%0%0%0% Ad Valorem Tax Revenue - Estimated Actual 298,020 312,146 325,475 340,056 354,202 374,321 Delinquent Ad Valorem - - - - - - Intergovernmental - - - - - - Other Fees - - - - - - Interest & Miscellaneous 100 104 108 112 117 122 Budget Transfer General Fund - - - - - - Other Revenue Sources - - - - - Total Other Revenue Sources 100 104 108 112 117 122 Total Revenues 298,120 312,250 325,583 340,168 354,319 374,443 Utilization of Fund Balance (120) (470) (804) (1,180) (1,529) (2,128) Total Revenues and Other Sources of Funds 298,000 311,780 324,779 338,988 352,790 372,315 EXPENDITURES Contractual Services (GNFD)154,800 162,143 169,060 176,631 183,978 194,431 Current Transfer to Isle of Capri 52,800 55,305 57,664 60,246 62,752 66,317 Current Transfer to General Fund 13,000 13,260 13,525 13,796 14,072 14,353 Current Transfer to Ochopee 77,400 81,072 84,530 88,315 91,988 97,214 Other Expenditures or Adjustments - - Total Expenditures 298,000 311,780 324,779 338,988 352,790 372,315 FUND BALANCE AND RESERVE ANALYSIS Ending Fire Rescue / Impact Fee Fund Balance 7,220 7,690 8,494 9,674 11,203 13,331 Minimum Reserve: Cash Flow + 5% Contingency - - - - - - Ending Fund Balance Over (Under) Minimum 7,220 7,690 8,494 9,674 11,203 13,331 Page 20 of 26 MASTER budget document which shows a total taxable value of $153,113,391 for a 3.86% increase over the prior year versus a countywide taxable value increase of 6.57%. In order to conservatively estimate future ad valorem revenue from CCFCD properties, a ratio was developed based upon the countywide versus CCFCD MSTU rate of property value increase and then applied to the countywide projection supplied by the state revenue estimating conference. Thus, for purposes of the economic model in Table 3, taxable value within the CCFCD MSTU is inc reased at a rate of 59% of that estimated for the entire county. As already discussed, GNFD proposes to provide services to the Isle of Capri district, first through an interlocal agreement through FY 1 7 , after which the district will be assimilated throug h legislative action within the GNFD. Therefore, if this proposal is accepted, the GNFD will already be effectively providing fire rescue services to over 70% of the CCFCD MSTU properties. GNFD believes that it will be more cost effective for the taxpaye rs to receive coverage for the entire district from GNFD as the sole provider. Table 4 – Economic model showing effect on taxpayers of transfer to GNFD management Table 4 shows the positive financial impact of this proposal on taxpayers. GNFD proposes to provide coverage to the entire district and immediately reduce the millage rate from its current 2.0 mils to 1.5 Plan Year Base Year Year 1 Year 2 Year 3 Year 4 Year 5 Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 ECONOMIC VARIABLES Countywide Population 343,519 350,389 357,397 364,545 371,836 379,100 Unincorporated Population 307,076 313,218 319,482 325,872 332,389 338,883 % Increase Over Prior Year 2.00%2.00%2.00%2.00%2.00%2.00% Countywide Taxable Property Value 64,597,000,000 69,793,500,000 74,841,500,000 80,524,700,000 86,202,400,000 94,506,100,000 MSTU Property Value 153,113,391 160,370,966 167,218,806 174,710,208 181,978,153 192,314,512 % Increase Over Prior Year 3.86%4.74%4.27%4.48%4.16%5.68% Salary Level Adjustment 2.0%2.0%2.0%2.0%2.0% Price Level Adjustment 2.0%2.0%2.0%2.0%2.0% REVENUES AND OTHER SOURCES OF FUNDS Ad Valorem Tax Millage Rate 2.00 1.50 1.50 1.50 1.50 1.50 % Increase (Decrease) Millage Rate -25%0%0%0%0% Ad Valorem Tax Revenue - Estimated Actual 298,020 234,110 244,106 255,042 265,652 280,741 Delinquent Ad Valorem - - - - - - Intergovernmental - - - - - - Other Fees - - - - - - Interest & Miscellaneous 100 104 108 112 117 122 Budget Transfer General Fund - - - - - - Other Revenue Sources - - - - - Total Other Revenue Sources 100 104 108 112 117 122 Total Revenues 298,120 234,214 244,214 255,154 265,769 280,863 Utilization of Fund Balance (120) (104) (418) (775) (1,107) (1,682) Total Revenues and Other Sources of Funds 298,000 234,110 243,796 254,379 264,662 279,181 EXPENDITURES Contractual Services (GNFD)154,800 220,850 230,271 240,583 250,590 264,828 Current Transfer to Isle of Capri 52,800 - - - - - Current Transfer to General Fund 13,000 13,260 13,525 13,796 14,072 14,353 Current Transfer to Ochopee 77,400 - - - - - Other Expenditures or Adjustments - - Total Expenditures 298,000 234,110 243,796 254,379 264,662 279,181 FUND BALANCE AND RESERVE ANALYSIS Ending Fire Rescue / Impact Fee Fund Balance 7,220 7,324 7,742 8,517 9,624 11,306 Minimum Reserve: Cash Flow + 5% Contingency - - - - - - Ending Fund Balance Over (Under) Minimum 7,220 7,324 7,742 8,517 9,624 11,306 Page 21 of 26 MASTER mils . Service could be provided via an interlocal agreement that would exist until the district could be incorporated within GNFD via legi slative action. ALLIGATOR ALLEY MM #63 FIRE STATION The portion of Interstate Highway 75 (State Highway 84) connecting Collier and Broward counties through the Everglades is a toll highway operated by the Florida Department of Transportation Enterprise Tol l authority. In recognition of the potential for accidents and injuries requiring emergency services along this remote stretch of highway, the legislature in 2011 amended Florida Statute 338.26(3)(a) to include funding to build and operate for a fixed tim e period a fire station at MM 63 along with a new rest area. Specifically…AF;S;A338;26(3)(a)AstatesAthatA.A“FeesAgeneratedAfromAtollsAshallAbeAdepositedAinAtheAStateA TransportationATrustAFundAandAshallAbeAused:”…AtoA“(4)A,designAandAconstructAaAfireAstatio n at mile marker 63 on Alligator Alley, which may be used by a county or another local government entity to provideAfire…ArescueAandAemergencyAmanagementAservicesAtoAtheApublicAonA lligatorA lley,”AATheAstationA was constructed between August, 2013 and Octo ber, 2014. Further, F.S. 338.26(3)(a)(5) goes on to stateAthatAfundsAmayAalsoAbeAused.A“ByAinterlocalAagreementAeffectiveAJulyA1…A2014…AthroughAnoAlaterAthanA June 30, 2018, to reimburse the county or another local governmental entity for the direct actual costs ofAoperatingAsuchAfireAstation;”AAThisAstationAwasAbuiltAandAstaffedAspecificallyAtoAserviceA lligatorA lleyA andAaccordingAtoAFDOT…A“,isAexpectedAtoAcutAdozensAofAmilesAandAatAleastAhalfAanAhourAoffAtheAaverageA response time to accidents and emergen ciesAonA lligatorA lley;” The FY 14 forecast budget for operation of the MM 63 fire station includes 13 personnel at a cost of $1,374,700 and an operating expense of $441,700. Capital equipment costs of $1,442,900 would not be recurring. GNFD proposes to operate the MM 63 fire station with 12 personnel and an annual expenditure budget, including personnel and operating costs, for FY 16 of $1,246,968 as shown in Table 5;AAInAtheArevenueAportionAofAtheAmodel…AthereAisAaAlineAmarked…A“OtherARevenue”;AAThisAi s the projected revenue that would be paid pursuant to an agreement currently between the Florida DOT and Collier County to reimburse actual expenses for operating the station on a quarterly basis. The revenue is shown at 100% for FY 16 and 17 and only at 75% in FY 18 to reflect the expiration of the current agreement on June 30, 2018. While no additional revenue from this grant is shown beyond FY 18 in the model, it is not unreasonable to expect assistance for operating the station from excess tolls beyo nd that point since the primary reason for the existence of the station is emergency response to the travelers along Alligator Alley. This would take legislative action and GNFD would work with the county and its legislative delegation to enact a change t o F.S. 338.26(3)(a)(5) extending the operating grant beyond June 30, 2018. In the event that does not occur, GNFD has sufficient financial strength to absorb the costs of operating this station with no added burden to taxpayers. Page 22 of 26 MASTER Table 5 – Greater Napl es Fire Rescue District (GNFD) showing impact of Collier County Fire Control District and Alligator Alley MM 63 fire station integration Plan Year Base Year Year 1 Year 2 Year 3 Year 4 Year 5 Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 ECONOMIC VARIABLES Countywide Population 343,519 350,389 357,397 364,545 371,836 379,100 Unincorporated Population 307,076 313,218 319,482 325,872 332,389 338,883 % Increase Over Prior Year 2.00%2.00%2.00%2.00%2.00%2.00% Countywide Taxable Property Value 64,597,000,000 69,793,500,000 74,841,500,000 80,524,700,000 86,202,400,000 94,506,100,000 MSTU Property Value 12,206,681,333 13,188,646,742 14,142,550,598 15,216,486,096 16,289,382,277 17,858,504,988 % Increase Over Prior Year 6.57%8.04%7.23%7.59%7.05%9.63% Salary Level Adjustment 2.0%2.0%2.0%2.0%2.0% Price Level Adjustment 2.0%2.0%2.0%2.0%2.0% REVENUES AND OTHER SOURCES OF FUNDS Ad Valorem Tax Millage Rate 1.50 1.50 1.50 1.50 1.50 1.50 % Increase (Decrease) Millage Rate 0%0%0%0%0% Ad Valorem Tax Revenue - Estimated Actual 17,669,171 19,090,566 20,471,342 22,025,864 23,578,881 25,850,186 Delinquent Ad Valorem 29,500 - - - - - Permits/Fire Marshal 699,800 728,072 757,486 788,088 819,927 853,052 Intergovernmental(Collier FD/EMS)134,406 220,850 230,271 240,583 250,590 264,828 Other Fees 116,200 120,894 125,778 130,859 136,146 141,646 Interest & Miscellaneous 425,370 442,555 460,434 479,036 498,389 518,524 Impact Fees - - - - - - Lease Purchase Proceeds - - - - - - Other Revenue Sources 1,246,968 1,271,910 973,010 - - Total Other Revenue Sources 1,405,276 2,759,339 2,845,879 2,611,576 1,705,052 1,778,050 Total Revenues 19,074,447 21,849,905 23,317,221 24,637,440 25,283,933 27,628,236 Utilization of Fund Balance 1,368,321 (228,353) (1,099,151) (1,805,841) (1,821,301) (3,516,553) Total Revenues and Other Sources of Funds 20,442,768 21,621,552 22,218,070 22,831,599 23,462,632 24,111,683 EXPENDITURES Current Personnel 16,449,827 16,943,322 17,451,622 17,975,171 18,514,426 19,069,859 Current Operating 2,486,087 2,535,809 2,586,525 2,638,256 2,691,021 2,744,841 Current Equipment 100,000 102,000 104,040 106,121 108,243 110,408 Equipment Acquired - Lease Purchase - - - - - - Lease Purchase Payments 267,447 267,447 267,447 267,447 267,447 267,447 Current Major Capital 623,715 - - - - - Current Transfer to General Fund 515,692 526,006 536,526 547,257 558,202 569,366 Current Major Capital - Impact Fees - - - - - - New Fire Station (Equipped)- - - - - Cumulative FTE (Career FF)1,058,268 1,079,436 1,101,024 1,123,044 1,145,508 Cumulative New Station Operating 188,700 192,474 196,323 200,249 204,254 Engine (Equipped)- - - - - - Other Equipment - - - - - - Other Expenditures or Adjustments - - - - - - Total Expenditures 20,442,768 21,621,552 22,218,070 22,831,599 23,462,632 24,111,683 FUND BALANCE AND RESERVE ANALYSIS Ending Fire Rescue / Impact Fee Fund Balance 7,008,611 7,236,964 8,336,115 10,141,956 11,963,257 15,479,810 Minimum Reserve: Cash Flow + 5% Contingency 5,283,941 5,726,929 6,099,413 6,516,133 6,933,301 7,530,889 Ending Fund Balance Over (Under) Minimum 1,724,670 1,510,035 2,236,702 3,625,823 5,029,956 7,948,921 DECISION UNITS AND UNIT COSTS New Fire Station (Equipped)- - - FTE (Career FF)- 12 - - - - New Station Operating - 1 - - - - Engine (Equipped)- - - - - - Cumulative New FTE (Career FF)12 12 12 12 12 Cumulative New Station Operating 1 1 1 1 1 Cumulative Total FTE (Career FF)150 162 162 162 162 162 Cumulative Number of Stations 9 10 10 10 10 10 Fire Station (Capital)2,466,060 2,515,381 2,565,689 2,617,003 2,669,343 2,722,730 FTE (Operating)86,460 88,189 89,953 91,752 93,587 95,459 Per New Station (Operating)185,000 188,700 192,474 196,323 200,249 204,254 Engine (Equipped)375,000 405,150 434,442 467,416 500,369 548,555 Page 23 of 26 MASTER Table 6 – Greater Naples Fire Rescue District (GNFD) showing impact of Collier County Fire Control District, Isle of Capris District and Alligator Alley MM 63 fire station integration Plan Year Base Year Year 1 Year 2 Year 3 Year 4 Year 5 Fiscal Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 ECONOMIC VARIABLES Countywide Population 343,519 350,389 357,397 364,545 371,836 379,100 Unincorporated Population 307,076 313,218 319,482 325,872 332,389 338,883 % Increase Over Prior Year 2.00%2.00%2.00%2.00%2.00%2.00% Countywide Taxable Property Value 64,597,000,000 69,793,500,000 74,841,500,000 80,524,700,000 86,202,400,000 94,506,100,000 MSTU Property Value 12,206,681,333 13,188,646,742 14,142,550,598 15,216,486,096 16,289,382,277 17,858,504,988 % Increase Over Prior Year 6.57%8.04%7.23%7.59%7.05%9.63% Salary Level Adjustment 2.0%2.0%2.0%2.0%2.0% Price Level Adjustment 2.0%2.0%2.0%2.0%2.0% REVENUES AND OTHER SOURCES OF FUNDS Ad Valorem Tax Millage Rate 1.50 1.50 1.50 1.50 1.50 1.50 % Increase (Decrease) Millage Rate 0%0%0%0%0% Ad Valorem Tax Revenue - Estimated Actual 17,669,171 19,090,566 20,471,342 22,025,864 23,578,881 25,850,186 Delinquent Ad Valorem 29,500 - - - - - Permits/Fire Marshal 699,800 728,072 757,486 788,088 819,927 853,052 Intergovernmental(Collier FD/EMS)134,406 220,850 230,271 240,583 250,590 264,828 Other Fees 116,200 120,894 125,778 130,859 136,146 141,646 Interest & Miscellaneous 425,370 442,555 460,434 479,036 498,389 518,524 Budget Transfer General Fund - - - - - - Impact Fees - - - - - - Lease Purchase Proceeds - - - - - - Other Revenue Sources 2,424,093 2,510,799 2,126,768 1,051,498 1,123,640 Total Other Revenue Sources 1,405,276 3,936,464 4,084,768 3,765,334 2,756,550 2,901,690 Total Revenues 19,074,447 23,027,030 24,556,110 25,791,198 26,335,431 28,751,876 Utilization of Fund Balance 1,368,321 (333,077) (1,244,189) (1,843,872) (1,734,758) (3,479,389) Total Revenues and Other Sources of Funds 20,442,768 22,693,953 23,311,921 23,947,326 24,600,673 25,272,487 EXPENDITURES Current Personnel 16,449,827 16,943,322 17,451,622 17,975,171 18,514,426 19,069,859 Current Operating 2,486,087 2,535,809 2,586,525 2,638,256 2,691,021 2,744,841 Current Equipment 100,000 102,000 104,040 106,121 108,243 110,408 Equipment Acquired - Lease Purchase - - - - - - Lease Purchase Payments 267,447 267,447 267,447 267,447 267,447 267,447 Current Major Capital 623,715 - - - - - Current Transfer to General Fund 515,692 526,006 536,526 547,257 558,202 569,366 Current Major Capital - Impact Fees - - - - - - New Fire Station (Equipped)- - - - - Cumulative FTE (Career FF)1,851,969 1,889,013 1,926,792 1,965,327 2,004,639 Cumulative New Station Operating 377,400 384,948 392,646 400,498 408,508 Engine (Equipped)- - - - - - Other Equipment - - - - - - Other Expenditures or Adjustments - 90,000 91,800 93,636 95,509 97,419 Total Expenditures 20,442,768 22,693,953 23,311,921 23,947,326 24,600,673 25,272,487 FUND BALANCE AND RESERVE ANALYSIS Ending Fire Rescue / Impact Fee Fund Balance 7,008,611 7,341,688 8,585,877 10,429,749 12,164,507 15,643,896 Minimum Reserve: Cash Flow + 5% Contingency 5,283,941 5,780,549 6,154,105 6,571,920 6,990,203 7,588,929 Ending Fund Balance Over (Under) Minimum 1,724,670 1,561,139 2,431,772 3,857,829 5,174,304 8,054,967 DECISION UNITS AND UNIT COSTS New Fire Station (Equipped)- - - FTE (Career FF)- 21 - - - - New Station Operating - 2 - - - - Engine (Equipped)- - - - - - Cumulative New FTE (Career FF)21 21 21 21 21 Cumulative New Station Operating 2 2 2 2 2 Cumulative Total FTE (Career FF)150 171 171 171 171 171 Cumulative Number of Stations 9 11 11 11 11 11 Fire Station (Capital)2,466,060 2,515,381 2,565,689 2,617,003 2,669,343 2,722,730 FTE (Operating)86,460 88,189 89,953 91,752 93,587 95,459 Per New Station (Operating)185,000 188,700 192,474 196,323 200,249 204,254 Engine (Equipped)375,000 405,150 434,442 467,416 500,369 548,555 Page 24 of 26 MASTER Payment T erms It is proposed that the B O CC will remit to GNFD any reve nues collected via the MSTU within thirty (30) days of receipt by the B O CC. Should it be determined that any other revenues are generated in support of these activities those fe e s will also be remitted to GNFD within thirty (30) days of receipt. PROPOSAL SUMMARY In summary, GNFD proposes to take over operation of Alligator Alley MM 63 fire station, the entire CollierACountyAFireAControlAMSTUADistrictA(“DistrictAOne”)AandAtheAIsle s of Capri Fire MSTU. All existing personnel would remain employed under curr ent collective bargaining agreements until full consolidation . Table 6 shows the economic impact of the composite proposal on GNFD for the next five years. It is clear that GNFD has the financial strength to undertake this role as shown by the fund balan ce analysis. Further, even though it is intended that much of the fund balance be available for future service level needs, it is apparent that there is sufficient strength to both absorb the proposed areas and accommodate future needs of the residents wh ile also providing tax relief to those residents in the adjacent areas to GNFD. All equipment and fixed facilities within the areas of the proposal would be turned over to GNFD. Interlocal agreements for operation of all three areas would be required. Th e IOC interlocal would be for a period not to exceed three years during which the millage rate would gradually be lowered from its current 2.0 mils to 1.5 mils . During the interlocal period, GNFD would work with the legislature to amend the statutory langu age defining the limits of GNFD such that all of the IOC district would come within the boundaries of GNFD within three years. Upon absorption into GNFD, the millage rate for all taxpayers currently within the IOC district would be reduced to 1.5 mils (Fi gure 5). The Collier County Fire Control MSTU district would be operated by interlocal agreement for no more than two years while GNFD worked to change the boundaries of its independent district to include all of the territory covered by District One. Th is would also require legislative action. Residents would see an immediate , upon adoption of the management services agreement , reduction in their millage rate from the current 2.0 mils to 1.5 mils , the rate currently enjoyed by residents of GNFD (Figure 5). Page 25 of 26 MASTER Figure 5 – E xisting (FY 2015) and proposed (FY 16 -20) millage rates for various districts under GNFD 0 0.5 1 1.5 2 2.5 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 MI L L A G E R A T E ISLE OF CAPRI MILLAGE COLLIER FIRE CONTROL MILLAGE GREATER NAPLES FD MILLAGE Page 26 of 26 MASTER Appendix A