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BudgetFHtE MAIN III IR M o tlreo+' NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT BOARD OF FIRE COMMISSIONERS M. James Burke . Christopher L. Crossan . Norman E. Feder ■ J. Christopher Lombardo ■ John 0. McGowan September 29, 2017 Mr. Derek Johnson, General Accounting Manager Clerk of the Circuit Court, Finance Department 3299 Tamiami Trail East, #403 Naples, FL 34112 Sent via Federal Express Dear Mr. Johnson: Enclosed please find the following: 1. Copy of Resolution 17-022 of the North Collier Fire Control & Rescue District, adopting the final millage rate for the North Naples Service Delivery Area for the fiscal year 2017-2018. 2. Copy of Resolution 17-023 of the North Collier Fire Control & Rescue District, adopting the final millage rate for the Big Corkscrew Island Service Delivery Area for the fiscal year 2017-2018. 3. Copy of Resolution 17-024 of the North Collier Fire Control & Rescue District, adopting the final impact fee rates for the North Collier Fire Control & Rescue District for fiscal year 2017-2018. 4. Copy of Resolution 17-025 adopting the Final Budget for the North Naples Service Delivery Area for the fiscal year 2017-2018 for the General Fund and the Inspection Fee Fund. 5. Copy of Resolution 17-026 adopting the Final Budget for the Big Corkscrew Island Service Delivery Area for the fiscal year 2017-2018 for the General Fund. 6. Copy of Resolution 17-027 adopting the Final Budget for the Impact Fee Fund for the North Collier Fire Control & Rescue District for the fiscal year 2017-2018. 7. Copy of the Budget for the fiscal year 2017-2018 for the General Fund, the Impact Fee Fund and the Inspection Fee Fund for the North Naples Service Delivery Area, the Big Corkscrew Island Service Delivery Area and the North Collier Fire Control & Rescue District. 8. Audit for the fiscal year ended 9-30-16. Very truly yours, V � <--- BECKY BRONSDON Chief Financial Officer 1885 Veterans Park Drive Naples, FL 34109 ■ (239) 597-3222 ■ Fax (239) 597-7082 0 www.northcollierfire.com RESOLUTION 17-022 A RESOLUTION OF THE NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT OF COLLIER COUNTY FLORIDA, ADOPTING THE FINAL LEVY OF AD VALOREM TAXES FOR THE NORTH NAPLES SERVICE DELIVERY AREA FOR FISCAL YEAR 2017-2018, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, sections 6(a) and (b) of the North Collier Fire Control and Rescue District's Charter found in section 3 of chapter 2015-191, laws of Florida, and Section 6 of chapter 2015-191, Laws of Florida authorizes the North Collier Fire Control and Rescue District to levy an ad valorem taxation on property within its boundaries in Collier County in the North Naples Service Delivery Area in an amount not to exceed 1 mills; and WHEREAS, the North Collier Fire Control and Rescue District on September 28, 2017 adopted Fiscal Year 2017-2018 Final Millage Rate for the North Naples Service Delivery Area following the public hearing required by section 200.065, Florida Statutes; and WHEREAS, the gross taxable value for operating purposes not exempt from ad valorem taxation within the North Collier Fire Control and Rescue District, North Naples Service Delivery Area, has been certified by the Collier County Property Appraiser as $30,842,221,363; NOW, THEREFORE, BE IT RESOLVED by the BOARD OF FIRE COMMISSIONERS OF THE NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT of Collier County Florida, that the Fiscal Year 2017-2018 operating millage rate for the North Collier Fire Control and Resolution 17-022 September 28, 2017 Page 2 of 3 Rescue District, North Naples Service Delivery Area, is 1.00 mills per $1,000.00, which is more than the rolled -back rate of .9021 mills per $1,000.00 by 10.85%. Such millage rate will be collected pursuant to the same manner and form as county taxes. This resolution shall take effect immediately upon its adoption. The foregoing resolution was offered by Commissioner Lo mea pnp who moved its adoption. The motion was seconded by Commissioner CRD. SA1J and the Vote was as follows: Commissioner M. James Burke: ❑ Yay fi lgay Commissioner Christopher L. Crossan: fd'Pay ❑ Nay Commissioner Norman E. Feder: U-1—ay ❑ Nay Commissioner John 0. McGowan: [;Hay ❑ Nay Commissioner J. Christopher Lombardo EY ray ❑ Nay Duly passed on this 28th day of September, 2017 by the Board of Fire Commissioners of the North Collier Fire Control and Rescue District. Resolution 17-022 September 28, 2017 Page 3 of 3 i T y r RESOLUTION 17-023 A RESOLUTION OF THE NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT OF COLLIER COUNTY FLORIDA, ADOPTING THE FINAL LEVY OF AD VALOREM TAXES FOR THE BIG CORKSCREW ISLAND SERVICE DELIVERY AREA FOR FISCAL YEAR 2017-2018, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, sections 6(a) and (b) of the North Collier Fire Control and Rescue District's Charter found in section 3 of chapter 2015-191, Laws of Florida, and Section 6 of chapter 2015-191, Laws of Florida authorizes the North Collier Fire Control and Rescue District to levy an ad valorem taxation on property within its boundaries in Collier County in the Big Corkscrew Island Service Delivery Area in an amount not to exceed 3.75 mills; and WHEREAS, the North Collier Fire Control and Rescue District on September 28, 2017 adopted Fiscal Year 2017-2018 Final Miilage Rate for the Big Corkscrew Island Service Delivery Area following the public hearing required by section 200.065, Florida Statutes; and WHEREAS, the gross taxable value for operating purposes not exempt from ad valorem taxation within the North Collier Fire Control and Rescue District, Big Corkscrew Island Service Delivery Area, has been certified by the Collier County Property Appraiser as $1,509,823,359; Resolution 17-023 September 28, 2017 Page 2 of 3 NOW, THEREFORE, BE IT RESOLVED by the BOARD OF FIRE COMMISSIONERS OF THE NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT of Collier County Florida, that the Fiscal Year 2017-2018 operating millage rate for the North Collier Fire Control and Rescue District, Big Corkscrew Island Service Delivery Area, is 3.50 mills per $1,000.00, which is more than the rolled -back rate of 3.2268 mills per $1,000.00 by 8.47%. Such millage rate will be collected pursuant to the same manner and form as county taxes. This resolution shall take effect immediately upon its adoption. The foregoing resolution was offered by Commissioner C R wss,�� who moved its adoption. The motion was seconded by Commissioner Lo M g PI, (DO , and the Vote was as follows: Commissioner M. James Burke: ❑ Yay M- iy Commissioner Christopher L. Crossan: G?la-y ❑ Nay Commissioner Norman E. Feder: 121a ❑ Nay Commissioner John O. McGowan: [Kay ❑ Nay Commissioner J. Christopher Lombardo V ay ❑ Nay Duly passed on this 28th day of September, 2017 by the Board of Fire Commissioners of the North Collier Fire Control and Rescue District. Resolution 17-023 September 28, 2017 Page 3 of 3 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT RESOLUTION 17-024 A RESOLUTION OF THE NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT OF COLLIER COUNTY, FLORIDA, IMPOSING TENTATIVE IMPACT FEE RATES FOR THE NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT FOR FISCAL YEAR 2017-2018; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, impact fees are a funding mechanism that a local government may utilize to pay for public improvements that are necessary to serve new growth; and and WHEREAS, impact fees must satisfy a dual rational nexus test to be constitutional; WHEREAS, the dual rational nexus test requires a local government to show a reasonable nexus between the local government's need for additional capital facilities and the new construction and that a special benefit is conferred upon the fee payers; and WHEREAS, Subsection 8 of section 6 of the North Collier Fire Control and Rescue District's Charter within section 3 of chapter 2015-191, Laws of Florida, authorizes the North Collier Fire Control and Rescue District to assess impact fees for capital Improvements on new construction within its boundaries; and WHEREAS, Resolution 16-017 established new impact fee rates that are effective October 1, 2016, which were based upon the most recent and localized data, as evidenced by the Impact Fee Update Study dated October 13, 2015, and created new impact fee land use categories; and Resolution 17-024 September 21, 2017 Page 2 of 5 WHEREAS, the new impact fee rates established by Resolution 16-017, and amended by Resolution 16-040, were adopted and noticed in compliance with Section 163.3180, Florida Statutes; and WHEREAS, Collier County collects the impact fees for the District and charges an administrative fee to cover Collier County's actual costs of such collection pursuant to interlocal agreements dated September 27, 2016; and WHEREAS, the final impact fee rates imposed by the Board of Fire Commissioners for the North Collier Fire Control and Rescue District at a Public Meeting held on September 28, 2017 for Fiscal Year 2017-2018 are the impact fee rates established by Resolution 17-024 in compliance with Section 163.31801, Florida Statutes NOW, THEREFORE, BE IT RESOLVED by the BOARD OF FIRE COMMISSIONERS OF THE NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT of Collier County, Florida, that the final rates for impact fees for Fiscal Year 2017-2018 are the impact fee rates adopted in Resolution 17-017, which are as follows: ReskkneW. 210 Single - Less than 4,000 sf du 1.71 $598.26 - 4,000 sf or greater du 1.95 $682.23 220/222/2 30/232 Multi -Family du 0.87 $304.38 240 Mobile Home / RV (Tied Down) du 1.33 $465.31 Tic -*04 6000. 310/311 Hotel room 0.81 $283.91 320 Motel room 0.76 $266.38 251/253 Assisted Living Facility (ALF)/Retirement Community du 1.00 $350.50 620 Nursing Home bed 1.05 $368.03 ftavalfoak 416 RV Park site 0.50 $175.25 420 Marina berth 0.19 $66.60 430 Golf Course 18 holes 19.44 $6,813.72 n/a Bundled Golf Course 18 holes 5.83 $2,043.42 444 Movie Theater w/Matinee screen 5.981 $2,095.99 n/a Dance Studios/Gyms 1 1,000 sf 1 2.22 $778.11 lnseltutrbns: Resolution 17-024 September 21, 2017 Page 3 of 5 520 Elementary School (Private) student 0.06 $21.03 522 Middle School (Private) student 0.07 $24.54 530 High School (Private) student 0.08 $28.04 540 University/Junior Colle a with 7,500 or fewer students student 0.10 $35.05 550 University/Junior College with more than 7,500 students student 0.07 $24.54 560 Church seat 0.03 $10.52 565 Day Care student 0.05 $17.53 610 Hospital 1,000 sf 1.37 $480.19 710 Office 6,000 sf or less 1,000 sf 1.00 $350.50 Office 6,001- 100,000 sf 1,000 sf 1.19 $417.10 Office 100,001- 200,000 sf 1,000 sf 1.01 $354.01 Office 200,001- 400,000 sf 1,000 sf 0.85 $297.93 Office greater than 400,000 sf 1,000 sf 0.77 $269.89 720 Medical Office/Clinic 10,000 sf or less 1,000 sf 1.14 $399.57 Medical Office/Clinic greater than 10,000 sf 1,000 sf 1.66 $581.83 770 Business Park (Flex Space) 1,000 sf 0.96 $336.48 iPeGotL Retail 100,000 gsf or less 1,000 gsf 2.46 $862.23 Retail 100,001- 150,000 gsf 1,000 gsf 2.25 $788.63 Retail 150,001- 200,000 gsf 1,000 gsf 2.30 $806.15 Retail 200,001- 400,000 gsf 1,000 gsf 2.34 $820.17 Retail 400,001- 600,000 gsf 1,000 gsf 2.44 $855.22 Retail 600,001- 1,000,000 gsf 1,000 gsf 2.42 $848.21 Retail greater than 1,000,000 gsf 1,000 gsf 2.32 $813.16 841 New/Used Auto Sales 1,000 sf 1.47 $515.24 849 Tire Superstore 1,000 sf 1.34 $469.67 850 Supermarket 1,000 sf 2.05 $718.53 851 Convenience Market 1,000 sf 5.4A $1,917.24 853 Convenience Store w/ Gas Pumps: 4 or less fuel positions fuel pos. 4.35 $1,524.68 5-6 fuel positions fuel pos. 3.70 $1,296.85 7-8 fuel positions fuel pos. 3.29 $1,153.15 9-30 fuel positions fuel pos. 2.94 $1,030.47 11-12 fuel positions fuel pos. 2.75 $963.88 13 or more fuel positions fuel pas. 2.59 $907.80 862 Home Improvement Superstore 1,000 sf 1.81 $634.41 881 Pharmacy/Drug Store with and wo/Drive-Thru 1,000 sf 1.96 $686.98 890 Furniture Store 1,000 sf 0.24 $84.12 911 Bank/Savings Walk -In 1,000 sf 2.23 $781.62 912 Bank/Savings Drive -In 1,000 sf 2.28 $799.14 931 Low -Turnover Restaurant seat 0.22 $77.11 932 High -Turnover Restaurant seat 0.27 $94.64 934 Fast Food Rest. w/Drive-Thru 1,000 sf 8.90 $3,119.45 941 Quick Lube service bay 1.16 $406.58 944 Gasoline/Service Station fuel pos. 1.91 $669.46 947 Self -Service car Wash service bay 0.87 $304.94 948 jAutomated Car Wash 1,000 sf 1.76 $616.88 Resolution 17-024 September 21, 2017 Page 4 of 5 n/a ILuxury Auto Sales I 1,000 sf 1 1.03 $361.02 hwuswd., Commissioner Norman E. Feder: M-Ya�y7 ❑ Nay Commissioner John O. McGowan: 110 Light Industrial 1,000 sf 0.69 $241.85 140 Manufacturing 11000 sf 0.50 $175.25 150 Warehousing 1,000 sf 0.28 $98.14 151 Mini -Warehouse 1,000 sf 0.06 $21.03 No reduction in the assessed impact fee rate is authorized and the provisions within Resolution 16-017 are applicable. This resolution shall take effect immediately upon its adoption. The foregoing resolution was offered by Commissioner L m&apn who moved its adoption. The motion was seconded by Commissioner �U(�.�e , and the Vote was as follows: Commissioner M. James Burke: 133 ay ❑ Nay Commissioner Christopher L. Crossan: E&Ya—y ❑ Nay Commissioner Norman E. Feder: M-Ya�y7 ❑ Nay Commissioner John O. McGowan: UK7ay ❑ Nay Commissioner J. Christopher Lombardo : ❑ Nay Duly passed on this 28th day of September, 2017 by the Board of Fire Commissioners of the North Collier Fire Control and Rescue District. Resolution 17-024 September 21, 2017 Page 5 of 5 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT i. -i. k-nnat,vpner wrnuaruv RESOLUTION 17-025 A RESOLUTION OF THE NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT OF COLLIER COUNTY FLORIDA, ADOPTING THE FINAL BUDGET FOR THE NORTH NAPLES SERVICE DELIVERY AREA GENERAL FUND FOR FISCAL YEAR 2017-2018; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the North Collier Fire Control and Rescue District of Collier County, Florida, on September 28, 2017 held a public hearing as required by Florida Statute 200.065; and WHEREAS, the North Collier Fire Control and Rescue District of Collier County, Florida, set forth the final appropriations for the North Naples Service Delivery Area in the amount of $29,046,449 and final revenue estimates in the amount of $30,614,344 for the General Fund for the Fiscal Year Fiscal Year 2017-2018; and NOW, THEREFORE, BE IT RESOLVED by the BOARD OF FIRE COMMISSIONERS OF THE NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT of Collier County Florida, that the Fiscal year 2017-2018 Final Budget for the General Fund for the North Naples Service Delivery Area be adopted. This resolution shall take effect immediately upon its adoption. The foregoing resolution was offered by Commissioner LO m &0'00 who moved its adoption. The motion was seconded by Commissioner Ckssa>y , and the Resolution 17-025 September 28, 2017 Page 2 of 2 Vote was as follows: Commissioner M. James Burke: Commissioner Christopher L. Crossan: Commissioner Norman E. Feder: Commissioner John O. McGowan: Commissioner J. Christopher Lombardo ❑ Yay ❑ Nay ❑ Yay ❑ Nay ❑ Yay ❑ Nay ❑ Yay ❑ Nay ❑ Yay ❑ Nay Duly passed on this 28th day of September, 2017 by the Board of Fire Commissioners of the North Collier Fire Control and Rescue District. NORTH COLDER FIRE //) / z M. Jameszwkm Christop . Crossan Nor4n Fe John O. McGowan LAND RESCUE DISTRICT RESOLUTION 17-026 A RESOLUTION OF THE NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT OF COLLIER COUNTY FLORIDA, ADOPTING THE FINAL BUDGET FOR THE BIG CORKSCREW ISLAND SERVICE DELIVERY AREA GENERAL FUND FOR FISCAL YEAR 2017-2018; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the North Collier Fire Control and Rescue District of Collier County, Florida, on September 28, 2017 held a public hearing as required by Florida Statute 200.065; and WHEREAS, the North Collier Fire Control and Rescue District of Collier County, Florida, set forth the final appropriations for the Big Corkscrew Island Service Delivery Area in the amount of $5,529,687 and final revenue estimates in the amount of $5,311,591 for the General Fund for the Fiscal Year Fiscal Year 2017-2018; and NOW, THEREFORE, BE IT RESOLVED by the BOARD OF FIRE COMMISSIONERS OF THE NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT of Collier County Florida, that the Fiscal year 2017-2018 Final Budget for the General Fund for the Big Corkscrew Island Service Delivery Area be adopted. This resolution shall take effect immediately upon its adoption. The foregoing resolution was offered by Commissioner CRossp, 0 who moved its adoption. The motion was seconded by Commissioner N\ , C ) k tj and the y i Resolution 17-026 September 28, 2017 Page 2 of 2 Vote was as follows: Commissioner M. lames Burke: 0-Yay ❑ Nay Commissioner Christopher L. Crossan: tray ❑ Nay Commissioner Norman E. Feder: �ra'y ❑ Nay � Commissioner John O. McGowan: ❑ Nay Commissioner J. Christopher Lombardo ;/Yay ❑ Nap Y Duly passed on this 28th day of September, 2017 by the Board of Fire Commissioners of the North Collier Fire Control and Rescue District. NORTH COWER FIRE CONTROL AND RESCUE DISTRICT cuwui)*! Riseue X203.5 0 FISCAL YEAR 2017-2018 BUDGET FINAL BUDGET HEARING SEPTEMBER 28, 2017 a 9 North Collier Fire Control and Rescue District Fiscal Year 2017-2018 Budget TABLE OF CONTENTS GeneralInformation..................................................................................................... 3 GeneralFund Summary................................................................................................ 8 General Fund Summary Budget .......................... Impact Fee Fund Budget Summary ..................... Impact Fee Fund Budget ..................................... Inspection Fee Fund Summary ........................... Inspection Fee Fund Budget ................................ Line Item Budget .................................................. 2 .............................................. 14 .............................................. 20 .............................................. 21 .............................................. 22 ..................... 23 ..................... 24 9 North Collier Fire Control and Rescue District Fiscal Year 2017-2018 Budget BOARD OF FIRE COMMISSIONERS Norman E. Feder, Chairman J. Christopher Lombardo, Vice -Chairman Christopher Crossan, Treasurer M. James Burke, Commissioner John McGowan, Commissioner f Norman Feder Chris Lombardo Christopher Crossan M. James Burke 3 John McGowan 9 North Collier Fire Control and Rescue District Fiscal Year 2017-2018 Budget DISTRICT ADMINISTRATION James M. Cunningham Fire Chief Rita Greenberg Deputy Chief of Accreditation Becky Bronsdon Chief Financial Officer Jorge Aguilera Assistant Chief of Emergency Medical Services & Training Eloy Ricardo Assistant Chief of Life Safety & Fire Prevention Eric Watson Assistant Chief of Fleet Robert Smith Operations Chief 9 North Collier Fire Control and Rescue District Fiscal Year 2017-2018 Budget BUDGET PLANNING CALENDAR FISCAL YEAR 2017-2018 June 1, 2017 Estimated Preliminary Property Value Provided by Collier County Property Appraiser June 27, 2017 Budget Workshop #1 5:30 p.m. Station 45 July 13, 2017 Board of Fire Commissioners Establishe Preliminary Maximum Millage Rate for DR -420 at July 13, 2017 Regular Board Meeting August 10, 2017 September 21, 2017 (Rescheduled due to Hurricane Irma) September 28, 2017 Budget Workshop #2 1:30 p.m. Station 45 Tentative Budget Hearing 5:30 p.m. Station 45 Final Budget Hearing 5:30 p.m. Station 45 5 0 North Collier Fire Control and Rescue District Fiscal Year 2017-2018 Budget OUR MISSION: The mission of the North Collier Fire Control and Rescue District is to protect lives and property in an efficient, yet effective manner, while maintaining the utmost level of respect for one another and illustrating a high standard of ethics and dedication to the care of our customers. OUR COMMITMENTS: TO OUR RESIDENTS AND THE COMMUNITY We are committed to meeting the needs and expectations of our residents today and in the future, to develop innovative solutions to the service delivery challenges we encounter, and to provide rapid response delivered by dedicated and caring professionals. TO OUR EMPLOYEES: We are committed to providing a working environment characterized by trust and respect, supportive of open and honest communication, and fostering professional growth, community involvement, and illustrating the highest ethical, moral and personal standards to incite public trust. "Honor, Service, Pride" 6 North Collier Fire Control and Rescue District Fiscal Year 2017-2018 Budget NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT 9 �-, 140 ASSISTANT CHIEF _ _ ASSISTANT CHIEF _ ASSISTANT CHIEF R PREVIFE ENTION OPERATIONS '"""' EMSfMINING i �r.re fx.w.rwi IMM—wT a am,uoo A4WT 11,-S C4"" rnNr nmcs.r li wows I wwo.r �1 �Ti "�. I i� """' �.r.r ern,• un+.. c.rdw Lw� 71CpLwn ....,.� tn/ns, 4Wor [iWaw. L Lie" -m Tnwnelsl YlIb1TOMM'/tMrldhrf�rW�uNOA SAr�pla CYnkMb f�lyl Gra Ours FIRE CHIEF ak..a Fwiu4s -- i ' CHIEF FINANCIAL OFFICER � DEPUTY CHIEF tapcin EXECUTIVE ACCREDITATION DIRECTOR De'D�tY Dire[tur of fYrWnce ASSISTANT CHIEF FLEET & j i �_m 7 M+'� AOCREDRATION 7 9 North Collier Fire Control and Rescue District Fiscal Year 2017-2018 Budget GENERAL FUND SUMMARY The General Fund Budget reflects a millage rate of 1.00 mils in the North Naples SDA and a millage rate of 3.50 mils in the Big Corkscrew SDA. North Naples SDA Property Values and Millage Rates D.UUW 4.5000 4.0000 3.5000 3.0000 2.5000 2.0000 1.5000 1.0000 0.5000 0.0000 c 2014-2015 2015-2016 1 2016-2017 2017-2018 ®Appraised Property Value $24,230,360,813 $26,147,933.475 $28.533.716,727 $30.842.221,363 —m--Millage Rate 1 0.9500 0.9500 0.9500 1.0000 $35 000.000,000 $30.C*O 000,000 $25 WO ",000 $20 WO, LW. 000 $15,000,000,000 $10,000,000,000 $5,000,000,000 North Collier Fire Control and Rescue District Fiscal Year 2017-2018 Budget Big Corkscrew SDA Property Values and Millage Rates 4.5000 40000 3.5000 30000 2.5000 2.0000 1.5D00 1 0000 0.5000 0.0000 2014-2015 2015-2016 1 20167017 1 2017-2018 ®Appma-d Property Value $1,036,864.318 $1,180,436,524 $1,307,618436 $1,509,823,359 o- Millage Rafe 3.5000 3.4500 3.4500 3 5000 $1,600,000,000 $1,400,000,000 $1,200,000,000 $1.000,000,000 $800,000,000 $600,000,000 $4 D0, D00, 000 $200,000,000 $- 9 North Collier Fire Control and Rescue District Fiscal Year 2017-2018 Budget GENERAL FUND REVENUE Total General Fund revenue for the North Collier District is $35,925,935, or 9.93% more than the prior year. Increase in revenue is due to the increase in taxable property value and the resulting increase in Ad Valorem revenue. The Board decided to levy millage rates of 1.00 in the North Naples Service Delivery Area and 3.50 in the Big Corkscrew Island Service Delivery Area following the financial impact of Hurricane Irma and the anticipated loss of an estimated $1 million in Ad Valorem revenue with the institution of the increased homestead exemption created during the 2017 legislative session which will be placed on the 2018 General Election ballot. As noted below, Ad Valorem revenue constitutes 95% of General Fund revenue. ,<__.00o,o00 SS 00",003 52-5,000,000 - 0; ;.;OO' OOS General Fund Revenue Ac valcrem Inte,est Fees for Service Other Income ■ General Fund Revenue 10 9 North Collier Fire Control and Rescue District Fiscal Year 2017-2018 Budget GENERAL FUND EXPENSES Total budgeted expenses for the North Collier District are $34,576,136, or 2% less than the prior fiscal year. • Personnel expenses constitute 83% of total General Fund expenditures, with employee wages representing the largest percentage of the District's personnel expenses. Unlike the private sector, the District cannot merely cut personnel to reduce costs. As an emergency responder, loss of personnel is a public safety issue, and cutting staff results in lowering the level of service to our community, placing life and property at risk. The 2017-2018 budgeted personnel expenses reflect a decrease of $248,446 as compared to the prior fiscal year. This decrease is possible even though the Collective Bargaining Agreement requires increases to bargaining unit employee wages, because 12 firefighter positions budgeted in the 16-17 fiscal year to staff a new station were not filled, several vacated positions were not backfilled, and the completion of the Early Retirement Incentive initiated October 1, 2016. • Operating expenses represent those costs associated with operating and maintaining the District's facilities, equipment, apparatus and services. Operating expenses contained within the 2017-2018 budget reflect an increase of $128,475 or 3% as compared to the prior year. This increase is due to contractual or external increases, including the cost of fuel, auto, liability and property insurance, fees payable to the Collier County Tax Collector, increases in professional fees to include a fire assessment fee study and the FGCU Wage and Benefit Study, and increases in the cost to maintain the District's computer network system. • Debt Service expenses represent the District's principal and interest costs on a lease to purchase for Lucas chest compressors, which will be paid in full by April of 2018, a new lease to purchase three fire engines and a ladder truck approved by the Board in January of 2016 which begins in November of 2016, and another lease to purchase a 75' ladder truck approved by the Board at the April 20, 2017 meeting. Total Debt Service for 2017-2018 is $519,775, representing an increase of $211,034 due to the addition of the ladder truck lease. • Capital expenditures provide for the purchase of capital assets, including vehicles, apparatus, computers and equipment that exceed $1,000 in cost and have a useful life of more than one year. The total capital expenditures provided for in the 2017- 2018 budget represent a decrease of $900,084 as compared to the 2016-2017 budgeted amount. The decrease is the result of the deletion and deferment of multiple capital purchases in an effort to reduce overall General Fund costs. 11 0 North Collier Fire Control and Rescue District Fiscal Year 2017-2018 Budget GENERAL FUND EXPENSES General Fund Expenses ■ Personnel ■ Operating ■ Debt Service ■ Capital 12 North Collier Fire Control and Rescue District Fiscal Year 2017-2018 Budget RESERVES Assigned Reserve Caegonit Budgeted Balance 9-30-16 C. ism Awlmb 142 I'm Addition to or (use) of Reserve Assigned Reserves Reallocated 17- i6 Reserve Balance 9.3D-18 Operating Reserve -is Quarter eases $ 7,250,000 $ 7,250,000 Minimum Operating Reserve Per Policy S 2,600,000 $ 2,600,000 Health insurance Oalm Reserve S 328,085 $ 21,915 $ 350,000 Apparatus Lease Pay Off $ 1,351,499 $ 1,351499 ALS/Medical Equipment Fire Prevention Bureau $ 274,242 $ (7,197) S 267,045 Station improvements i Equip. S 64,087 5 4,518 $ 68,605 St. #461mprovements $ 20,936 S (20,936) $ TOTAL ASSHMED RESIERA $ 10,537,350 $ 1,356,996 S (7,197) $ 11,887,149 RESERVE SUMMARY Establishment of Lease Pay Off Reserve $ 1,351,499 Allocation of Existing Reserve $ (7,197) Increase to Health Insurance Claim Reserve $ 21,915 Addition to Station Improvements $ 4,518 Use of St. 46 Improvement Reserve $ (20,936) Total Addition to Reserves 17.18 S 1,349,799 13 GENERAL FUND-2017-2018 Amended Amended Percentage of - Bud 16-17 Estimated B t6-17 E49matW 8 16.17 Difference 16-17 Difference 16-17 p17 t NN SDA 9.30-17 NN SDA Be SDA 9.30.17 Be SDA Nord) Collier vs/ 17-18 vs. 17-18 Balance Forwartl-Assigned IS 11.450923 S 11,450,923 $ 1,831,665 S 1,831,665 S 13,282,588 Balance Forward-Unassi netl - S 11,450,923 S 11,450,923 $ 1,831,665 E 1,831,865 S 13,282,588 - 1 S 25,751,679 f 25,751,679 S 4325,186 $ 4,325,186 E 30,076865 $ 4243.4013 14.11% 1 2 C.C.-Ad Val. over 95% $ 19,185 $ 375,144 $ - $ 69,745 E 19,185 1 51 2 3 Interest-General $ 49,500 $ 34,500 r S 500 $ 3,000 r $ 50,000 r1 S 72,500 -25.00% 3 4 Interest-CD $ 20,000 $ 10,000 S 20,000 r $ 0.00% 4 5 Interest-Ad Valorem S 1 650 $ 282 S S 5 Fire Watch and Spec. Event 6 Fees $ 50,000 S 50,000 $ 15,DOD S 15,000 $ 65,000 S 15,00D 23.08% 6 7 Omupatimal Lic. Fees see If,. 10 see line 10 - see line 10 see line 10 see line 10 7 8 Flow Test see line 10 see line 10 see line 10 see line 10 see line 10 8 9 Hrant Maintenance Fees see line 10 see line 10 see line 10 see line 10 - see If" 10 9 Ire Prevention .I Services (Formerly lines 13, 10 14, 15, 16, 21, 28,33 $ 700,000 $ 482,474 S 150 $ 150 S 700,150 S 204,727 -29.24% 10 17 Service Fees-Other see line 10 see line 10 - see lin¢ 10 see line 10 -asissmi 11 12 State & Federal Grants $ 537,500 $ 460,510 S 537,500 $ 537,500 S 1,075000 r E 664,000 fi1.77% 12 State Revenue Sharing FF 73 Su lemental S 48,834 $ 48.830 S 7,976 S 8500 f 58,870 S 8,231 -14.49% 17 14 Key Boxes see line 10 -lin 10 - see line 10 see line 10 see line 10 - 14 15 Reins tion Fees $ 100 $ S 100 15 16 Rental - Celi Tower $ 60,000 S 60,000 $ 77,500 S 77,500 r r t r S 137,500 S 35,995 18 17 Station Rental-EMS $ 38,310 $ 38,310 E 38,310 $ 3,345 17 18 Other Rental $ 65,000 S 65,0130 f 65,000 $ 23,000 35.38% 18 19 Donalions IS Grants $ 1,000 $ 11,250 S 1,000 r S 7,000 700.00% 19 20IDisposition of Fixed Assets $ 34 000 $ $ 20 Fire Inspection Fees-Existing Zt Bltl s. see line 10 see line 10 see line 10 see line 10 - see line 10 - 21 22 Miac, Revenue $ 150,000 $ 100,000 f 10,000 S 10000 S 160,000 f 60,000 22 23 Mist. Rev.-Refunds/Reimb. S 75.000 S160,556 I S 40 S 75,000 S 50,000 23 24 Fire Training Center Fee $ 50,000 S 23,587 Irr $ 50,000 $ (25,0001 24 25 Trainin Fees S 10,000 25 26 Reimbursement-Overtime S 90.000 S 20,000 S 90,000 S 60.000 X6.67% 26 False/Malfunctioning Alarm 27 Fees see line 10 see line 10 see line 10 see line 10 - see line 10 27 28 IFCD Interlocal A regiment r t+r S 30 000 100.00% 28 TOTAL INCOME S 27,706108 $ 27.727,494 $ 4.973.812 f 5048903 S 32679920 141 Health Plan Physician - Clinic :and Employes Is ant Recognition Percentage of Budget 18.17 surAgm Budigat 18.17 8~ 18.17 - Difference 16-17 Difference 16-17 NN SDA 430-1 NN S A North CoMer vsi 17-18 vs. 17-18 112 Office E ui ment-Prevention $ 860 $ 2,311 : $ 140 $ 378 S 1,000 $ 0 0.00% 112 113 Fire Equipment $ 101,347 $ 101,347 E 16553 $ 16,553 S 117,900 r E 18700 -15.86% 113 114 Shop Equipment & Supplies E 19,341 E 13,553 r $ 3,159 E 2,214 • • r S 22,500 r S 3,000 -13.33% 114 Warehouse/Logistics 115 Supplies/Eq Supplies/E S 5,158 E 5,472 E 842 E 894 S 6,000S r 6,500 108.33% 115 Professional& other fees S $ 116 Professional $ 202,006 f 210,311 $ 32,994 $ 34,350 S 235,000 r $ 203,000 86.38% 176 117 Property Appraiser's Fees E 217,044 $ 217,044 $ 35,450 S 35,450 $ 252,494 S 0 0.00% t17 118Collector's Fees $ 522,617 $ 522,617 $ 85,360 E 85,360 $ 607,977 - : S 87,371 14.37% 118 119 Auditor E 68,768 $ 62,587 $ 11,232 S 10,223 E 80,000 S 0.00% 179 120 Intentional) Left Blank $ $ S 120 Miscellaneous S S 121 Water/Sewer Fee St 44 $ 5,587 f 6,317 r $ 913 $ 1,032 S 6,500 f 1,069 16.45% 127 122 Travel& Per Diem $ 32,683 E 29,448 E 5,317 S 4,809 S 38,000 r S 28.000 -73.68% 122 123 PIO/Communi Outreach E 2,837 1 E 2,837 S 463 E 463 S 3,300 • S 2400 72.73% 123 124 Intentional) Left Blank $$ 124 125 Vehicle Fuel/Oil E 150,430 S 191,523 $ 24,570 $ 31,221 E 175,000 S 13,736 7.85% 125 Training and Education 126 Courses and Programs S 179,090 S 175,079 - f 29,226 $ 28,596 $ 208,316 r E 6,916 3.32% 126 127 Training Su lies/E ui ment $ 14,183 $ 14,183 $ 2,317 $ 2,317 E 16,500 r S 3,000 -18.18% 127 128 Miscellaneous $ 8,596 E 8,596 E 1,404 E 1,404 S 10,000 r S 0.00% 126 129 Subscri tion/Dues S 6,928 S 8,298 S 7,132 E 1,355 r S 8,060 S 7,555 93.73% 129 130 Subscription/Dues Prev $ 516 $ 1,396 S 84 S 228 S 600 r S 0.00°h 130 131 Legal Advertisements $ 8,596 $ 6,877 $ 1,404 S1,123 S 10,000 • $ 2,000 -20.00% 131 132 Dive Team $ 6,266 f 6,266 $ 1,023 S 1,023 S 7,289 r $ 5,489 -75.31% 132 Fire Prevention Materials & 133 Su lies E 47,278 $ 35,842 S 7,722 S 5,854 $ 55,000 r E 25,000 i5.45°h 133 134 Haz Mat E 13,754 $ 4,298 E 2 246 E 702 $ 16,000 IllE 15,000 -93.75% 134 135 Technical Rescue E 8,725 $ 4,296 S 1,425 f 702 f 10,150 r E 7,150 -70.44% 135 136 KA Team S S 136 137 Boat Team E 4,974 S 4,974 S 816 S 876 S 5,790 r S 1,490 -25.73% 137 138 CERT Team $ 11,605 $ 7,762 S 1,895 t 7,267 S 13,500 S 2,500 -16.52% 138 139 Contingencies $ f S f 139 Total Op. Esp. $ 4,158 788 f 1786 565 '. S 679 278 S 867 778 - S 4,838 004 TOTAL OPERATING 8 PERSONNEL EXPENSES $ 28,827,599 S 28,907,887 S 5,057,234 S 5,125,750 $ 33,884,833 S 119,972 -0.35% Prior Year Fund Balance E 11,450,923 S 11 450,923 r rr E 1,831,665 $ 1,831,665 $ 13,282,588 r Total Income E 27,706,108 S 27,727494 E 4,973,812 E 5,046,903 $ 32,679,920 Total Personnel & Operating Expenses E (28,827,599) S (29.207,665) $ 5,057,234 f (5,125,150) S (33,884,833) . Total Cash Reserve S 10,329 432 S 9 970,732 S 1,748,243 S 1 753,118 S 12,077 675 AMWKWAmantlW - Amended Percentageof 1617 EWmataA B 1.617 E,Wma/eC 8 N 16-17 Difference 16-17 Difference 16-17 NN 430-1t8d 17 BC SDA Nw6t CaMNt vs! 17-18 vs. 17-18 Debt Service Equipment and Apparatus 140 Lease Principal E 235,456 E 235,456 S 38,457 E 38,457 S 273,913 E 156,113 56.99% 14D 141 ^ E 64,322 E 64.322 S 10,506 E 10,506 f 74,828 $ 14,921 141 Total Dabt Service f 299.778 299 40 983 $ 48,983 348,741 r Capital Station Improvements & 160E ui $326,433 S 303,645 $ 53,317 E 49,595 E 379,750 + S 315,750 .63.15Yo 180 161 Fire antl Rescue E ui . $ 180,689 $ 160,776 r E 29,511 S 26,280 + $ 210,200 r $ 160,200 -76.21% 161 162 Protective Gear $ 138.396 $ 102,768 r $ 22,604 S 16785 + E 161,000 r E 61000 -37.89% 162 163 Medical Equipment S 73,066 S 73,066 $ 11,934 f 11,934 $ 85,000 $ 85,000 -1 DO.00% 163 164 Communication Equip S 8,596 $ 8,596 f 1,404 S 1,404 $ 10,000 S 10,000 -100.00% 164 165 Mee Equipment S 1,908 $ 312 E S 185 166 Com uters $ 146.132 $ 93,445 S 23,868 E 15,263 $ 170,000 + $ 105,000 .61.76% 166 167 TRT f 9,713 $ 9,713 - $ 1,587 $ 1,587 $ 11 300 E 11,300 -100.00% 167 168 Boat Team E 35,67315 2,050 S 5,827 E 1,762 E 41,500 E 41,500 -100.DO% 168 169 Training Equipment S S S $ 189 170 Vehicle Purchase $ 34,879 E 15,942 - S 5,696 S 2,768: S 40575 r S 30,575 -75.35% 170 171 ShopEquipment S 62,386 S 62,386 f 10,190 $ 10,190 S 72,576 S 72,576 100.00% 171 172 L isbc;:arehouse $ S S - $ 172 173 HazMat Team $ 5,673 S $ 927 S 6,500 E 6,600 -100.00% 173 174 Fire Apparatus $ $ 174 175 Dive Team $ 2,650 $ E 433 $ 3,083 - E 3,083 100.00% 175 176 Fire Prevention $ - $ E - $ S $ 176 177Communi Outreach E - $ S - S r S r $ 177 178 ^ f - $ S - $ S S 178 Total Capital Outlay f 1,024,286 f 834295 S 167,298 S 137,860 $ 1,191,554 Cash Reserves Betore Capital and Debt Service Purchases S 10,329,432 f 9,970,752 S 1,748,243 $ 1,753,418 S 12,077,675 Debt Service - Capital Equipment E 299,778 $ 48,963 $ 48,963 $ 348,741 Capital Purchases E (1.024,286) E 834,295 + E {167,298) E 1137,8601 + $ 11,191,584) Endma Cash Reserve S 9,005 358 S 9,136 457 S 1,531.982 $ 1 566,595 $ 10,537,350 Personnel 8 OperatingEx uses E 26,827,599 M $ 5,057,234 $ 5,125,150 S 33,884,833 Debt Service $ 299,778 E 48,963 $ 48,963 E 348,741 Capital $ 1,024,286 Holm 5 167,298 E 137,860 $ 1,191,564 TOTAL EXPENSES f 30,151,663 S 29207,685 f %M.495 $ 5311,973 S 35,425,158 $ 849,022 -2.40% 9 North Collier Fire Control and Rescue District Fiscal Year 2017-2018 Budget IMPACT FEE FUND BUDGET SUMMARY Chapter 2015-191, Florida Statutes, the District's enabling act, establishes the Board of Fire Commissioners' right to assess impact fees. Pursuant to Florida law, an impact fee must comply with the "dual rational nexus" test which requires "a reasonable connection, or rational nexus, between the need for additional capital facilities and the growth in population generated by the subdivision." Additionally, there must be a reasonable connection between the expenditure of the funds and the benefit to those paying the fee. Impact fees must be designated and segregated for the purchase or construction of capital assets required due to growth of the District. Costs to maintain, staff or replace a facility or piece of equipment may not be funded by impact fees. The Board of Fire Commissioners establishes the impact fee rate schedule each year by resolution when adopting the annual budget for the fund. In March of 2015, the Board engaged the consultant firm of Tindale -Oliver to prepare an updated impact fee study for the new North Collier Fire Control and Rescue District. That study was completed and accepted by the Board at the October, 2015 Board Meeting. The Board accepted the population -based model of impact fee assessment, with the impact fee rate based on property usage rather than square feet. Since there is one impact fee rate structure assessed throughout the District, there is no need to segregate the Impact Fee revenue and expenses by service delivery area. Impact fee revenue recognized a significant increase during the 2014-2015 and 2015- 2016 fiscal years as a result of the growth in the District. However, with the adoption of the new rate structure, revenues decreased by 35 per cent in the 2016-2017 fiscal year. As such, budgeted impact fee revenue for the 2017-2018 year is based on current year actual receipts and recognizes the decrease resulting from the implementation of the new impact fee rate structure. The Board has engaged the firm that conducted the impact fee rate study to review updated data to determine if the rates should be adjusted in the future. Impact Fee Budget Highlights: o Emergency traffic signal for Station #42 (re -budgeted from 2016-2017) o Debt service for property for a new station o Allowance for construction in progress PLO NORTH COLLIER FIRE CONTROL & RESCUE DISTRICT IMPACT FEE FUND BUDGET - 2017-2018 North Collier Fire Control & Rescue District INCOME Amended Budget Estimated 9-30-17 Final Budget 17 - 18 16-17 1 Impact Fees $ 2,000,000 $ 1,300,000 $ 1,300,000 2 Other 3Interest $ 1,000 $ 6,598 $ 6,000 TOTAL INCOME $ 2,001,000 $ 1,306,598 $ 1,306,000 EXPENSES 1 Collection Fees $ 71,000 $ 71,000 $ 71,000 2 Interest to General Fund $ - 31 Repayment to General Fund $ - 4 Debt Service Principal $ 57,500 $ 57,500 $ 57,500 5 Debt Service Interest $ 17,250 $ 17,250 $ 17,250 6 Construction in Progress $ 1,050,000 $ 150,000 $ 1,050,000 7 Station Construction Office Equipment & Station 81 Equipment $ 75,000 9 Emergency Signal - St. 42 $ 400,000 $ 400,000 10 Apparatus 11 Protective Gear $ 50,000 12 Fire Equipment $ 75,000 Total Expenses $ 1,795,750 $ 295,750 $ 1,395,750 Fund Balance (Deferred Revenue ) at 9-30 $ 1,458,502 $ - $ 877,666 Income $ 2,001,000 $ 1,306,598 $ 1,306,000 Expenses $ (2,581,836) $ (295,750) $ (1,595,750) Fund Balance (Deferred Revenue ) at 9-30 $ 877,666 $ 1,010,848 $ 587,916 21 BJB/bb 8-15-17/9-19-17 9 North Collier Fire Control and Rescue District Fiscal Year 2017-2018 Budget INSPECTION/PLAN REVIEW FEE FUND BUDGET SUMMARY In February of 2003, the Board of Fire Commissioners of the North Naples SDA established the Inspection Fee Fund by Resolution 03-001. This fund was created in compliance with Collier County Resolution 01-131 dated July 31, 2001. In June of 2014, the Board of Fire Commissioners elected to assume the duties of fire code plan reviews for the District, formerly performed by the Collier County Fire Code Official's Office. Four plan reviewers were hired, and an Interlocal Agreement entered into with Collier County to imbed the District's plan reviewers in the County offices to provide a better level of service to the public. The revenue generated by the fire code plan review and the inspection of new construction is segregated into the Inspection/Plan Review Fee Fund, as are all attributable expenses. The costs associated with the plan reviewers, as well as the District's fire inspectors assigned to new construction inspections, are also allocated to this fund. Where appropriate, a portion of an employee's wages and benefits are allocated to this fund. The operating expenses associated with the plan review and new construction inspection services are also allocated to this fund, including the annual lease payment of $50,000 to Collier County. As with impact fees, new construction inspection fees and plan review fees recognized a significant increase during the 2014-2015 and 2015-2016 fiscal years, but were somewhat reduced in the 2016-2017 fiscal year. As such, projected revenue for this fund reflects a modest decrease of 2 per cent. Expenses for the 2017-2018 year reflect a decrease of less than one per cent. 22 NORTH COLLIER FIRE CONTROL & RESCUE DISTRICT INSPECTION FEE FUND 2017-2018 Amended Budge Estimated Final Budget Variance Percent of 2016-2017 Seipt.30,2017 2017-2018 16/17 vs. 17/18 Variance INCOME 1 Inspection Fees $ 1,000,000 $ 850,000 $ 980,000 $ (20,000) -2.00% 2 Plan Review Fees $ 1,000,000 $ 850,000 $ 980,000 $ (20,000) -2.00% 3Interest $ 2,000 $ 1,000 $ 2,000 $ - 0.00% Total Income $ 2,002,000 $ 1,701,000 $ 1,962,000 $ 40,000) -2.00% Personnel Expenses 4 Salaries $ 1,209,508 $ 1,069,072 $ 1,230,430 $ 20,922 1.73% 5 Professional Pay $ 6,000 $ 9,000 $ 9,600 $ 3,600 60.00% 6 Overtime $ 30,000 $ 10,000 $ 50,000 $ 20,000 66.67% 7 Sick Leave Pa $ 25,000 $ 20,000 $ 25,000 $ - 0.00% 8 Social Security $ 95,891 $ 81,784 $ 103,891 $ 8,000 8.34% 9 Retirement - FRS $ 84,200 $ 80,912 $ 98,877 $ 14,677 17.43% 10 Retirement - 175 $ 55,700 $ 56,700 $ 55,700 $ - 0.00% 11 Disability Insurance $ 10,000 $ 10,000 $ 10,000 $ - 0.00% 12 Worker's Compensation $ 38,812 $ 20,000 $ 42,195 $ 3,383 8.72% 13 Life/Health Insurance $ 198,210 $ 189,270 $ 198,210 $ - 0.00% 14 Employee Physicals $ 1,000 $ 1,000 $ 1,000 $ - 0.00% Total Personnel Expenses $ 1,754,321 $ 1,547,738 $ 1,824,903 $ 70,582 4.02% O eratin Ex enses 16 Telephone $ 1,000 $ 1,000 $ 1,000 $ - 0.00% 17 Utilities $ 2,500 $ 2,500 $ 2,500 $ - 0.00% 18 Office Supplies/ Equipment $ 2,000 $ 2,000 $ 2,000 $ - 0.00% 19 Uniforms $ 1,000 $ 1,000 $ 1,000 $ - 0.00% 20 Rent - Collier County Lease $ 50,000 $ 50,000 $ 50,000 $ - 0.00% 21 Fire Prevention Materials $ 5,000 $ 21,177 $ 5,000 $ - 0.00% 22 Dues & Subscription $ 6,900 $ - $ 6,900 $ - 0.00% 23 Computer Software/Main $ 76,177 $ - $ 40,000 $ (36,177) -47.49% 24 Travel & Per Diem $ 6,000 $ 7,250 $ 10,000 $ 4,000 66.67% 25 Training $ 25,000 $ 3,000 $ 20,000 $ (5,000) -20.00% Total Operating Expenses $ 175,577 $ 87,927 $ 138,400 $ (37,177) -21.17% Capital Expenses 23 Vehicles $ 72,500 $ 72,500 $ 72,500 Total Capital Expenses $ 72,500 $ 72,500 $ - $ (398) TOTAL EXPENSES $ 2,002,398 $ 1,708,165 $ 1,963,303 $ (2,252) -0.11% FUND BALANCE (RESERVE) AT 10-01 $ 1,905 $ 9,070 $ 1,507 INCOME $ 2,002,000 $ 1,701,000 $ 1,962,000 EXPENSES $ (2,002,L98 )I 1._11,708,165) $ (1,963,303) FUND BALANCE 9-30 $ 1,507 1 $ 1,905 $ 204 BJB/bb 9-19-17 23 INCOME DETAIL The -District's Enabling Act grants the Board of Fire Commissioners the authority to assess a levy on property owners for fire protection, rescue and emergency service. The Collier County Property Tax Appraiser provides the appraised taxable value of all of the property within the District's boundaries. That taxable estimated value is transmitted to the District via Form DR -420, which the District usually receives in July prior to the October beginning of a new fiscal year. The Board of Fire Commissioners establishes the millage rate, or taxing rate, up to the maximum allowable by the District's Enabling Act (1 Mil, or $1.00 for every $1,000 of appraised property value in the North Naples service delivery area and 3.75 mils in the Big Corkscrew service delivery area, or $3.75 for every $1,000 of appraised property value). This taxing rate is tentatively adopted at the Tentative Budget Hearing, and finalized with the adoption of the final budget at the Final Budget Hearing. Both of these hearings are held in September. Ad Valorem revenue represents 95% of the District's total annual revenue, with the balance of revenue consisting of interest, cell tower and station rentals, and various fees for service identified below. The budget assumes the District will receive 95% of the total possible Ad Valorem assessed. The taxable property value for the fiscal year 2017-2018 reflects an increase of 8% in the North Naples service delivery area's taxable property value and an increase of 15% in the Big Corkscrew service deliveray area's taxable property value. BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 24 001-3110-001-000, 002-000, 003-000,120:001-3110-001-000, 002-000, 003-000 AD VALOREM NN SDA BC SDA North Collier Gross Taxable Value Per Form DR -420 (DRAFT = 80/6 Increase NN, 15% Increase BCI) $ 30,842,221,363 $ 1,509,823,359 Millage Rate - NN SDA 1.00, BCI 3.50 1.00 Mil 3.50 Mil $ 30,842,221 $ 5,284,382 $ 36,126,603 95% Allowable x 95% x 95% x 95% Prior Year Amended Budget 16-17 S 25,751,679 $ 4,325,186 $ 30,076,865 Estimated 9-30-17 $ 26 126,823 $ 4,394 931 $ 30,521,754 001-3610-101-000,102-000,104-000,120-3610101000 NN SDA BC SDA North Collier Collier County Ad Valorem Interest $ - $ - General Interest $ 33,500 $ 4,000 $ 37,500 CD Interest $ 20,000 $ - $ 20.000 Prior Year Amended Budget 16-17 1 S 69,500 $ 5001s 70,000 Estimated 9-30-17 1 $ 46,150 $ 282 56,000 BJB/bb 7-31-17/8-1517(9-19-17/9-2577 25 001-3420-903-000, 904-000, 905-000,906-000,908-000, 909-000, 912-000, 913-000, 915-000 001-3620-001-000, 002-000,003-001,001-3630-001-000, 001-3660-001-000,002-000 001-3690-902-001,903-000,903-001,903-002 120-3420-903-000 904-000 905-000 906-009 908-000 909-000 912-000 913-000 3660-001-000 002-000 OTHER INCOME -BUDGET Other General Fund Income is comprised of various sources as identified below. For those income sources where no verification is possible, an average of the last 4 years' receipts is used, recognizing any trending. Prior Year Amended Budget 16-17 S 700,1001S 5,4501$ 705,550 Esiknaled 9-30-17 1 $ 482,474 S 1501$ 480,334 NN SDA BC SDA North C0111er Donations and CERT Grant $ NN SDA BC SDA North Collier Flow Test $ 18,825 $ $ 18,825 Occupational License Inspections $ 50,000 $ - $ 50,000 Hydrant Maintenance Fees $ 160,000 $ - $ 160,000 Service Fees - Other $ 17,598 $ - $ 17,598 Key Boxes $ 10,000 $ - $ 10,000 Inspection Fees - Existing Buildings $ 214,000 $ - $ 214,000 False/Malfunctioning Alarm Fees $ 25.000 $ 5 25,000 101,505 EMS Rental $ 41,655 $ - Prior Year Amended Budget 16-17 S 700,1001S 5,4501$ 705,550 Esiknaled 9-30-17 1 $ 482,474 S 1501$ 480,334 NN SDA BC SDA North C0111er Donations and CERT Grant $ 8,000 $ 8,000 State & Federal Grants $ 205,500 $ 205,500 $ 411,000 State Revenue Sharing - FF Supplemental $ 41,205 $ 7,374 $ 48,579 IFD Interlocal Agreement Fees $ 25,446 $ 4,554 $ 30,000 Miscellaneous Revenue $ 95,000 $ 5,000 $ 100,000 Miscellaneous Reimbursements/Refunds $ 120,000 $ 5,000 $ 125,000 Cell Tower Rent $ 51,505 $ 50,000 $ 101,505 EMS Rental $ 41,655 $ - $ 41,655 Other Rentals $ 42,000 $ - $ 42,000 Overtime Reimbursement $ 30,000 $ - $ 30,000 Training Fees $ 10,000 $ - $ 10,000 Fire Traininq Center Fees Fire Academies $ 25,000 $ - $ 25,000 TOTAL Prior Year Amended BudW 16-17 1 $ 1,115 644 1S 632.9761S 1,748 620 Estimated 9-30-17 1 $ 1,002,047 $ 641,640 1 $ 1,643,587 BJB/bb 7-31-17/8-15-17/9-19.17/9-25-17 26 001-3630-001-000 Firewatch Fees are charged to entities requiring the presence of certified firefighters to perform watch over their fire safety systems in the event of mechanical malfunction, construction or other factors. Special event firewatch fees are charges for the same services performed during a special event, such as a concert or theatrical performance. NN SDA BC SDA North Collier Prior Year Amended Budget 16-17 1 $ 50,000 1 $ 15,000 1 $ 65,000 Estimated 9-30-16 1 $ 70.000.1 $ 10,000 1 $ 80,000 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 27 I INCOME RECAP PROJECTED FUND BALANCE CARRIED FORWARD: Cash Reserve at 9-30-17 NN SDA SC SDA North ColWer Assigned (Projected) $ 9,005,368 $ 1,531,982 $ 10,537,350 PROJECTED REVENUE -1.00 MIL NN SDA, 3.50 MIL BC SDA AD VALOREM TAX REVENUE $ 29,300,110 $ 5,020,163 $ 34,320,273 ESTIMATED INTEREST $ 53,500 $ 4,000 $ 57,500 ESTIMATED FIREWATCH FEES $ 70,000 $ 10,000 $ 80,000 ESTIMATED OTHER INCOME -PREVENTION $ 495,423 $ - $ 495,423 ESTIMATED OTHER INCOME $ 695,311 $ 277,428 $ 972,739 TOTAL INCOME ESTIMATED $ 30,614,344 1 $ 5,311,591 1 $ 35,925,935 TOTAL FUNDS AVAILABLE FOR 2017-2018 $ 39,619 712 $ 6,843,573 $ 46,463,285 Total revenue Total ands -prior Year Amended BUdgat 16-17 $ 39,157 031 $ 6,805 477 4kMSQ8 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 28 EXPENSES Expenses of the General Fund are categorized as follows: Personnel Operating Debt Service Capital NN SDA BC SDA North Collier $ 24,145,752 $ 4,212,574 $ 440,873 $ 247,250 $ 4,652,631 $ 753,904 $ 78,902 $ 44,250 $ 28,798,383 $ 4,966,479 $ 519,775 $ 291,500 Prior Year Amended Budget 16-17 30151 663 $ 5,273,495 1 $ 35,425,158 Estimated 9-30-17 1 $ 29,207,665 1 $ 5,300,379 1 $ 34,508,044 The Board of Fire Commissioners has directed staff to prepare a budget that is at minimal cost neutral as compared to the 16-17 budget, incorporating methods to reduce long term costs in anticipation of future revenue reductions resulting from future increases in homestead exemptions. Personnel related expenditures constitute 83% of the total budgeted expenses for the 2017-2018 fiscal year as compared to 81 % in the 2016-2017 year, Total personnel expenses for 2017-2018 reflect a decrease of $248,446 (or less than 1 %) over the 16-17 year. Operating expenses represent those costs associated with operating and maintaining the District's facilities and operations. The operating expenses contained within the 2017-2018 budget represents an increase of $128,475 (or less than 3%) as compared to the prior year. Debt Service expenses represent the District's principal and interest costs on a lease to purchase for Lucas chest compressors, which will be paid in full by April 2018, and for lease to own purchases of 3 engines, 1 ladder and a tower. The Board has directed staff to establish a reserve fund for early payment of this debt to reduce long term expenses. Capital expenditures provide for the purchase of capital assets and capital improvements, including vehicles, fire apparatus, computer, and firefighting equipment that exceed $1,000 in cost and have a useful life of more than one year The total capital expenditures provided for in the 2017-2018 budget reflect a decrease of $900,084 (or 75%) as compared to the prior year. Total budgeted expenses of the General Fund for the fiscal year 2017-2018 reflect a decrease of $849,022 or 2% compared to the prior year. BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 29 PERSONNEL EXPENSES STAFF WAGES AND BENEFITS Employee wages represent the largest percentage of the District's personnel, as well as total, expenditures. Projected expenses for the 2017-2018 year are based on the funding of the positions identified below, which includes the reclassification of one existing employee to Assistant Chief of Operations/Special Teams. 001-5220-012-000.012-002.120-5220-012-000 SALARY - PERSONNEL AND PREVENTION - BUDGET LINES 30 AND 31 NN SDA BC SDA North Collier ADMINISTRATION PERSONNEL 0.50 Fire Chief 1 Deputy Chief 1 Chief Financial Officer 1 Assistant Chief -Fleet 1 Assistant Chief - EMSi raining 1 'Assistard Chief - OperallonVSpecial'Teams 1 Public Information Officer 1 Community Outreach - PART TIME 1 HR Generalist 1 Customer Service Representative 1 Accounts Payable/Receivable Accountant 1 Executive Director 1 Deputy Director of Finance 1 Executive Assistant 1 Administrative Assistant (1 PART TIME) 3 Facility Coordinator 1 Maintenance Technician 1 Lead Fleet Technician 1 Fleet Technician 4 Computer Network Administrator 1 Computer Network Technician 1 Technical Manager 1 TOTAL ADMINISTRATIVE PERSONNEL 27 FIRE PREVENTION FUNDED BY GENERAL FUND: Assistant Chief - Fire Prevention and Life Safety (50%) 0.50 Fire Marshal/Battalion Chief of Prev. (50%) 0.50 Deputy Fire Marshals/Captain of Prev. 2 Fire Inspectors/Lieutenants of Prevention 1 Fire Inspector 1 4 Inspector/Public Education 2 Administrative Assistant 1 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 30 FUNDED BY INSPECTION FEE FUND: Assistant Chief - Fire Prevention and Life Safety (50%) 0.50 Fire Marshal/Battalion Chief of Prev. (50%) 0.50 Deputy Fire Marshals/Captain of Prev. 3 Fire Inspectors/Lieutenants of Prevention 2 Inspector 1 3 Plan Reviewers 5 Administative Assistants 1 TOTAL FIRE PREVENTION PERSONNEL 26 Note: Positions funded by /nspecdon Fee Fund are Paid by Inspection Fees on New 186,779 Construction 1,230,430 TRAINING $ Battalion Chief of Training 1 Training Lieutenants 4 TOTAL TRAINING I I 1 5 LOGISTICS Captain of Logistics 1 Sworn employee assigned to Logistics 1 TOTAL LOGISTICS 2 OPERATI TOTAL SMFT EMPLOYEES 188 TOTAL EMPLOYEES I 1 1 226 NN SDA BC SDA North Collier $ 15,155,656 $ 3,024,826 $ 18,180,482 Prior Year Amended Budget 16-17 1 $ 15,745,826 1 $ 2,8U,264 1 $ 18,630,080 Estimated 9-30-17 1 $ 14,438,887 1 $ 27,1391$ 14,466,006 BJB/bb 7-31-17(8-15-17/9-19-1719-25-17 31 NN SDA BC SDA North Collier Salaries -Personnel $ 13,344,237 $ 2,388,181 $ 15,732,417 Salaries -Prevention $ 767,769 $ 137,405 $ 905,174 Salaries -Inspection Fee Fund $ 1,043,651 $ 186,779 $ 1,230,430 HARMONIZATION FUNDED BY BC $ 312,460 $ 312,460 :0 ,482 BJB/bb 7-31-17(8-15-17/9-19-1719-25-17 31 001-5220-011-000.120-5220-011-000 The Board of Fire Commissioners is a five member Board elected by the voters residing in the North Collier District. Each Commissioner must be a resident of the District. Effective with the 2016 General Election, one Commissioner is elected from the Big Corkscrew Island Service Delivery Area, and one Commissoiner is elected from the North Naples Service Delivery Area. The other three Commissioners are elected from the District at large. The two Commissioners elected from each service delivery area have an initial term of 4 years, as does one of the Commissioners elected at large. The other two Commissioners elected at large have an initial term of 2 years (with terms expiring November 2018). Effective with the 2020 General Election,all seats are elected at large. Following the 2018 election, all Commissioners will have a 4 year term. The annual salary for Commissioners is established by Florida Statute, and has remained constant since 1996. NN SDA BC SDA North Collier Position Annual Salary Annual Salary Chairman $ 5,089 $ 911 $ 6,000 Vice -Chairman $ 5,089 $ 911 $ 6,000 Secretary/Treasurer $ 5,089 $ 911 $ 6,000 Commissioner $ 5,089 $ 911 $ 6,000 Commissioner $ 5,089 $ 911 $ 6,000 ..l 2017-2r 30.000, Prior Year Amended Budget 16-17 1 $ 29,02 S 4 739 S 33,751 Estimated 9-30-17 1 $ 29,0121 $ 4,739 J S 33 751 Florida Statute establishes the independent fire district's responsibility to provide benefits for elected officials. 001-5220-023-005 NN SDA BC SDA North Collier Total -Hea r - Prior Year Amended Budglot 16-17 $ 52,1411$ 81518 1 $ 60,657 E6#RWed 9.30417 $ 52,1411 $ 8,518 is 60,857 BJB/bb 7-31-17/8-15-17/9-1317/9-25-17 32 001-5220-022-008,120-5220-022-008 RETIREMENT - COMMISSIONERS - BUDGET LINE 67 As of June 1, 2003, all elected officials participate in the Florida Retirement System. The contribution rate is established legislatively, along with any percentage of employee contribution. The required employee contribution is currently 3%. NN SDA BC SDA North Collier Commissioners $ 10,807 $ 1,934 $ 12,741 TOTAL $ :0 Prior Year Amended Budget 16-17 $ 12,322 $ 2,012 1 $ 14,334 Estimated 9-30-17 1 $ 12,3221 $ 2,012 1 $ 14.334 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 33 001-5220-016-015-010 ON CALL PAY - BUDGET LINE 35 Members of the collective bargaining unit who are assigned to an on call status receive $1.50 per hour for all hours on call per the Collective Bargaining Agreement. Estimated costs are based on current year actual expenses. Provision has also been made to provide $1.00 per hour for District mechanics (non -bargaining positions) to be on call subject to District Policy revisions. NN SQA BC SDA North Collier Bargaining Unit Employees $ 14,419 $ 2,581 $ 17,000 Mechanics $ 6,786 $ 1,214 $ 8,000 TOTAL25,000 Prior Year Amended Budget 16-17 $ 14,31M $ 2,342 1 $ 16,680 Estimated 9.30-17 $ 21,266 $ 3.473 1 $ 24,739 001-5220-015-000, 002,120 -5220 - Professional Pay is compensation to those employees who maintain an additional qualification to perform other emergency or job related responsibilities, and include the following categories establishing the area of expertise, the certification and the annual amount provided. The compensation amount is established via the Collective Bargaining Agreement NN SDA BC SDA North Collier BA/BS Degree $ 64,463 $ 11,537 $ 76,000 AA Degree $ 93,302 $ 16,698 $ 110,000 Fire Instructor/Fire Officer $ 8,724 $ 1,561 $ 10,285 Fire Investigator/Fire Inspector $ 4,750 $ 850 $ 5,600 MAKO Tech $ 2,239 $ 401 $ 2,640 Nozzle Tech $ 1,624 $ 291 $ 1,915 Other Incentives $ 6,107 $ 1,093 $ 7,200 Team Leaders $ 12,214 $ 2,186 $ 14,400 Asst. Team Leaders $ 8,957 $ 1,603 $ 10,560 Field Training Officers $ 29,687 $ 5,313 $ 35,000 GENERAL $ 256,800 PREVENTION $ 7,200 INSPECTION FEE FUND (See Insp. Fee Fnd. Bud) $ 9,600 • .0i Prior Year Amended Budget 16-17 $ 224,0061$ 36,5871$ 260,593 Estimated 9-30-17 1 $ 225,0721 $ 36,849 IS 261,921 BJB/bb 7-31-17/6-15-1719-19-1719-2517 34 001-5220-014-000,001,002,003,004,005.006, 007 008, 120-5220-014-000 Overtime is paid to meet minimum manning shift requirements, when qualified replacement personnel are required to fill position vacancies caused by illness, vacation, education, and kelly days, and in the event of a District wide emergency. Overtime includes regular operation overtime, firewatch, special teams, fire prevention, paramedic training, other training, instructors for District training, administration and overtime reimbursable by the State or other agencies. NN SDA BC SDA North Collier Overtime -Operations Call Back Held Over Radio Repair & Maintenance Air Compressor Repair Meetings Nozzle Repair General Operations (Including Staffing Maintenance) $ $ $ $ $ $ $ $ - 1,696 16,964 5,937 1,696 16,964 1,696 284,571 $ $ $ $ $ $ $ $ - 304 3,036 1,063 304 3,036 304 50,929 $ $ $ $ $ $ $ 2,000 20,000 7,000 2,000 20,000 2,000 335,500 TOTAL• •- • Estimated 9-30-17 FF Prior Year Amended B 16-17 $ 471,061 $ 76,9391$ 548,000 TOTALOVERTIME • . • - NN SDA Estimated 9-30-17 1 $ 660,3 5 $ 86,201 $ 646,516 40,000 NN SDA BC SDA North Collier TOTAL•VERTIME - PREVENTION $ 42.410 $ 7,590 $ 60,000 Prior Year Amended Budget 16-17 1 $ 42,9801$ 7,020 1 $ 50,000 Estimated 9-30-17 1 $ 202,7661 $ 33,1191$ 235,885 Variance -16-17 vs. 17-18 - r Prior Year Amended Budget 16-17 1 $ 55,8741$ 9,1261$ 65,000 Estimated 9-30-17 1 $ 23,0931 $ 3,771 $ 26,8641 r' TOTALOVERTIME • . • - NN SDA BC SDA North Collier F i 30,000, Prior Year Amended 16-17 $ 34,3841$ 516161$ 40,000 Estimated 9-30.17 $ 51,6901 $ 8 443 1 $ 60133 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 35 Overtime -Training NN SOA 8C i; -M Collier Mass Violence $ - $ Crisis Intervention Traiing $ 8,482 $ 1,518 $ 10,000 'TOTAL• 10,000 Prior Year Amended Bud 16-17 1 $ 52,8651$ 815351S 61,500 Estimated 9-30-17 1 $ 36,974 S 6,206 1 $43,180 Overtime -Special Teams S 38,682 IS 6,3181$ $ - Dive Team - 24 Hours/27 Members $ 25,140 $ 4,499 $ 29,639 HazMat - 32 Hours/35 Members $ 52,710 $ 9,433 $ 62,143 TRT - 40 Hours/30 Members $ 57,587 $ 10,306 $ 67,893 Boat Team - 25 Hours/16 Members $ 20,905 $ 3,741 $ 24;646 TOTAL• :0 $ 184,321 Prior Year Amtnded Spoget 16-17 $ 150,8981S 24,6461$ 175 544 Estimated 9.30-17 1 $ 150.8981 $ 24,646 IS 175,544 The financial provision for paramedic overtime training pursuant Paramedic • ____.0,222 $ 10,778 $ 71,000 TOTAL 17-18 PARAMEDIC OVERTIME $ 60,222 $ 10,778 $ 71,000 Prior Year Amended Budget 16.17 1 $ 61,0321S 9.901$ 71,000 Estimated 9-30.17 1 $ 35,9201 $ 4.739 1 $ 40,659 NN SDA BC SDA North Collier Overtime-Reimburseable (Training and Event) This budget line provides for the payment of overtime for District instructors and members for training which is reimburseable from state or federal funds, as well as overtime required for special events. $ 25,446 $ 4,554 $ 30,000 • _ • _ u u: _. _ r rrr Prior Year Amended Budget 16-17 S 38,682 IS 6,3181$ 45,000 Estimated 9-30.17 $ 85.4701 $ 18,3271$ 103,797 BJB/bb 7-31-17/&1577/9-1317/9-2577 36 001-5220-015-005 Members of the Dive Rescue Team, Technical Rescue Team, Hazmat Team, and Boat Rescue Team who complete 70% of their training receive an annual bonus of $300 each, paid September 30, per the Collective Bargaining Agreement. NN SDA BC SDA North Collier BC SDA HazMat (35 Members) $ 8,906 $ 1,594 $ 10,500 TRT (30 Members) $ 7,379 $ 1,321 $ 8,700 Boat Rescue (16 Members) $ 4,580 $ 820 $ 5,400 Dive Rescue (27 Members) $ 5,598 $ 1.002 $ 6.600 TOTAL:• li Prior Year Amended Bud 16-17 1 $ 26,8201S 4,3801$ 31200 Estimated 9-30-17 1 $ 26.8201 $ 4,3801$ 31 200 001-5220-015-001, 120-5220-015-001 EMPLOYEE HOLIDAY PAY -BUDGET LINE 38 Holiday pay is paid to bargaining unit personnel on shift pursuant to the terms of the Collective Bargaining Agreement. Each shift employee is paid for 11 holidays, 8 hours per holiday, or a total of 88 hours. The paid holidays are identified in the Collective Bargaining Agreement. Payment is made on or before September 30th annually NN SDA BC SDA North Collier Annual Holiday Pay $ 373,900 $ 66,916 $ 440,816 Prior Year Amended Budget 16-17 1 $ 360,8821$ 68,9431$77741-9-825, Estimated 9-30-17 360,8821 $ 58,9431$ 419,825 BJB/bb 7-31-17/8-15-1719-19-17t9-25-17 37 001-5220-015-003 006 • •PAYOUT -BUDGET Pursuant to the terms of the Collective Bargaining Agreement and Section 10 of District Policies, employees are paid for earned, unused sick time as of September 30th of each fiscal year at 100% of their hourly rate. Employees have the option of receiving payment for all unused sick time, or transferring a portion of the time to personal time for future use. The number of hours which may be transferred to an employee's personal time bank, as well as the maximum accrual of personal time is defined in the Collective Bargaining Agreement and in District Policy. Annual Sick Pav Out PrW YearArner~ded Budget 16-17 484,092 S 79,068 $ 563,160 EstMtlst•d 9.30.17 1 $ 484,092 79,0681$ 563160 Prior Year Amended Budget 16-17 $ 17,9891$ 2,9381$ 20,927 Estimated 9-90.17 $ 17,989 $ 2,938 $ 20,927 001-5220-015-004.120-5220- • •PAYOUT -BUDGET Upon separation from the District or upon entering the Florida Retirement System or Ch. 175 Pension DROP program, employees are paid for their accrued, earned unused vacation hours (up to a maximum of 500 hours) at their hourly rate, pursuant to the Collective Bargaining Agreement and District Policy. NN SDA BC SDA North Collier $ 114,507 $ 20,493 $ 135,000 TOTALr r Out 135,000 Pry Year Amended 1BtKIW 16-17 $ 136,419 IS 22,281 S158.700 Estimated 9-30-17 1 $ 136,4191 S 64,4701$ 200,889 Note: 16-17 contained provision for early retirement participants' vacation pay out. BJB/bb 7-31-17/8-15-17/9-1317/9-2517 38 001-5220-022-000,002,003,004, 001-5220-022-005 RETIREMENT -BUDGET LINES 63 - 68 The employees of the District participate in one of two retirement plans - the Chapter 175 Firefighters' Pension Plan, or the Florida Retirement System. All certified firefighters hired prior to January 1, 1996 and elected officials and administrative staff participate in the Florida Retirement System ("FRS"). Pursuant to Board action, any general employee or elected official ineligible for participation in FRS is provided with a 401(a) plan with equivalent contribution rates to FRS. All employees participating in FRS, excluding those in the DROP program, are required to contribute 3% of pensionable wages. The employer contribution rates are established by the Florida legislature annually. These rates are effective for their fiscal year, which runs from July 1 to June 30. Estimated budgeted costs are determined by multiplying anticipated wages of participating employees by the appropriate contribution rate for the plan in which the employee participates. Florida Retirement System NN SOA BC SDA North Collier GENERAL FUND $ 483,214 $ 86,480 $ 569,694 PREVENTION $ 13,926 $ 2,492 $ 16,418 INSPECTION FUND (See Insp. Fee Fund Budget) $ 79,877 Prior Year Amended Budgot 16-17 $ 810,242 $ 132,3381$ 942,580 Estimated 9.30-17 $ 819,9661 $ 140,2221$ 960,1 Chapter 175 Firefighters' Pension All certified firefighters hired by the District after January 1, 1996 participate in the Chapter 175 Firefighters' Pension plan. Contributions to the plan are funded partially by State Premium Tax Funds, with the balance paid by the District. Currently, the District may utilize up to $1.746 million annually of those state funds to offset the District's required contribution, as determined by an annual actuarial study prepared on behalf of the Pension Plan's Board of Trustees and as the result of collective bargaining in 2007 Effective October 1, 2011, plan participants are required to contribute 3% of pensionable wages to the Plan, which results in a reduction to the District's contribution rate. Additionally, the Board of Fire Commissioners agreed to pre -fund the District's contribution beginning with the 17-18 plan year. By pre -funding the annual contribution, the District will save between $40,000 and $100,000 in the contribution amount because the funds will be invested longer and the actuarial study can eliminate an interest charge for funding the plan quarterly. NN SDA BC SDA North Collier District contribution reflects 2017 receipt of State Premium Tax Fgunds of $1,818,352 Estimated Contribution Rate 2017-2018 based on current actuarial valuation - 22.60% GENERAL PREVENTION INSPECTION (See Inspection Fee Fund Budget) $ $ 2,013,132 146,270 $ $ 360,285 26,177 $ $ $ 2,373,417 172,447 55,750 • .. .t Prior Year Amended Budget 16-17 1 $ 932,1091$ 152,2431$ 1 084,352 Estimated 9-17 1 $ 1,798 026 1 $ 302,2191$ 2,100,245 BJB/bb 7-31-17/8-15-17/9-19-17/9-2517 39 401 Plan for General Employees and Elected Officials Ineligible for FRS Participation (2 General Employees and 2 Elected Officials) NN SQA SC SDA Horth Cow" Prior Year Amended Budget 16-17 $ 6,402 $ 2,434 1 $ 8,836 Estimated 9-30-17 1 $ 5,016 1 $ 778 $ 5,794 BJB/bb 7-31-17/8-15-17/9-1317/9-25-17 40 001-5220-021-000.001 Employers are required to pay social security taxes at the rate of 6.20% on all wages up to a maximum of $127,200 per employee, and medicare taxes at the rate of 1.45% on all wages paid to employees. For budgetary purposes, the total wages budgeted are multiplied by 6.20% and 1.45% to arrive at the estimated social security contribution for the 2017-2018 fiscal year NN SDA BC SDA North Colller GENERAL $ 1,174,844 $ 210,259 $ 1,385,103 PREVENTION $ 63,802 $ 11,418 $ 75,220 INSPECTION (See Inspection Fee Fund Budget) $ 82,569 Prior Year Amended Budgot 16-17 $ 1,279 417 $ 192,654 $ 1,472,071 Estimated 9-30-17 1 $ 1,169,852 $ 191,075 I $ 1,360,927 001-5220-024-000, 001, 120-5220-024-000 The District provides worker's compensation insurance coverage for all employees as required by law. One hundred percent of wages paid are subject to worker's compensation, except for overtime. Only two-thirds of overtime paid is subject to worker's compensation. NN SDA BC SDA North Collier GENERAL $ 739,049 $ 132,266 $ 871,315 PREVENTION $ 37,412 $ 6,695 $ 44,107 INSPECTION (See Inspection Fee Fund Budget) $ 42,195 Prior Year Amended Budget 16-17 $ 637,1591$ 97,7291$ 734,888 Estimated 9-30-17 732,9721 $ 148,9851$ 881,957 BJB/bb 7-31-17/&1517/9-1317/9-2617 41 001-5220-023-001,004 Pursuant to the Collective Bargaining Agreement and District Policies, short term (6 months) and long term disability insurance is provided for all employees, excluding elected officials. All premiums are fully paid by the District. The District self insures short term disability coverage. Wages up to a maximum of $1,200 per week are subject to short and long term disability benefits. GENERAL PREVENTION INSPECTION (See Inspection Fee Fund) NN SDA BC SDA North Collier $ 59,011 $ $ 3,541 $ 10,561 $ 69,572 634 $ 4,175 - $ 5,914 TOTAL 17-18 SHORT/LONG TERM DIS $ 62,552 $ 11,195 $ 79,561 Prior Year Amended Budget 16-17 78,5161 $ 12,8241$ 91,3401 Estimated 9-30-17 $ 78,6161$ 12,824 $ 91,340 001-5220-023-000, 003,005, 120-5220-023-000 LIFE/DENTAUHEALTH INSURANCE -BUDGET LINES 57 - 59 For the last several years, representatives of administration and the Local have worked cooperatively to restructure the health insurance plan design to reduce costs for the District. By changing the plan design and moving to a high deductible platform, the District has saved over $3 million dollars over the last four years. The cost for the 2017-2018 health insurance coverage includes the District's funding of a Health Savings Account for employees. Prior Year Amended Budget 16-17 S 3,323,696 $ 528,7551$ 3,852,451 Estimated 9- Ill $ 5;0-2230113--- 516 339 $ 538 640 Variance - 96-17 vs. 17-18 0% BJB/bb 7-31-17/8-15-1719-1317/9-25-17 42 NN SDA BC SDA North Collier Annual Cost Annual Cost HEALTH, LIFE & DENTAL INSURANCE (includes Health Savings Account Funding Per Current CBA) General $ 2,787,652 $ 498,898 $ 3,286,550 Harmonization Costs $ 22,702 $ 22,702 Prevention $ 242,376 $ 43,377 $ 285,753 Commissioners $ 58,829 $ 10,528 $ 69,357 Inspection $ 201,708 Prior Year Amended Budget 16-17 S 3,323,696 $ 528,7551$ 3,852,451 Estimated 9- Ill $ 5;0-2230113--- 516 339 $ 538 640 Variance - 96-17 vs. 17-18 0% BJB/bb 7-31-17/8-15-1719-1317/9-25-17 42 001-5220-023-009 In 2007-2008, the District established a Post Employment Health Plan to provide funds for eligible employees' health insurance costs after retirement. The plan is solely employer funded. The District makes an annual contribution of $2,500 per eligible employee funded by Ad Valorem revenue received in excess of that budgeted. Elgibility is established by Article 21 of the Collective Bargaining Agreement and District Policy Section 14. Current criteria requires an employee to have five years of service to be eligible for the District contribution in an annual amount not to exceed $2,500. The Fire Chiefs Employment Contract also provides for an annual contribution to his Post Employment Health Plan. NN SDA BC SDA North Collier TOTAL 17-18 BUDGET $ 22,901 $ 4,099 $ 27,000 r -r r.r� Variance - 16-17 vs. 17-18 8% 001-5220-023-002 ar �PRfTEE P:r,ti7t r_BeyA.us MEDICAL taart.iet*e�R�a All personnel employed under the terms of the Collective Bargaining Agreement and all sworn employees covered by Section 25.03 of the District Policies are required to undergo an annual physical performed by the District physician consisting of specified criteria. These services are billed through the employee's health insurance under the wellness provision. Any costs for required components of the physical not covered by the wellness provision of the health insurance plan are paid for by the District. Pursuant to the terms of Section 25.03 of District Policies, all non -sworn administrative staff have the option of an annual physical, which is funded in the same manner as those provided for bargaining unit employees. The District also provides fit for duty and pre-employment physical exams, via the District Physician. The District pays 100% of these costs. NN SDA BC SDA North Collier Anuual Physicals and Medical Clinic $ 171,336 $ 30,664 $ 202,000 •TAL 17-18 BUDGET $ 171,336 $ 30,664 4 202,000 Prior Year Amended BWW 16.17 1 $ 173,6391$ 28,361 $ 202,000 Estimated 9-30-17 S 173,6391 $ 28,361 $ 202,000 Variance - 16-17 vs. 17-18 0% NN SDA BC SDA North Collier ProgramUCF Mental Wellness 0•0 TOTAL 17-18 BUDGET $ 8,482 $ 1,518 $ 10,000 BJB/bb 7-31-1718-15-17/9-19.17/9-25-17 43 RETIREMENT RECOGNITION -BUDGET LINE 71 The 2017-2018 General Fund Budget contains provision for an expenditure of $3,000 to provide retirement recognition acknowledgments pursuant to District Policy. NN SDA BC SDA North Collier TOTAL 17-18 BUDGET $ 2,545 $ 455 $ 3,000 Prior Year Amended Budget 16-17 1 $ 2,5791S 421 IS 3.006 EsUMMed 9-30-17 1 $ 2,579 $ 4211$ 3.000 001-5220-025-000,120-520-025-000 The District is self-insured for unemployment claims; that is, the State pays the approved claim based on their criteria and the District is required to reimburse the State for the claim. The 2017-2018 budget contains provision for compensation for any former employees who may utilize unemployment benefits NN SDA BC SDA North Collier TOTAL 17-18 BUDGET $ 8,482 $ 11518 $ 10,000' Prior Year Amended 113909pt 16-17 1 $ 1,7191$ 281 $ 2,000 Estimated 9-30-17 1 $ .1 S - S BJB/bb 7-31-17/8-15-1719-1&17/9-2517 44 OPERATING EXPENSES 001-5220-045-000, 120-5220-045-000 nA:1tUrawA.jI'll PTU 1:1n1 -JI U atMatao The District maintains general liability, auto, property, accident, sickness and umbrella coverage through VFIS Insurance Company. Cost projections are based on current actual costs plus an additional 3%. NN SDA BC SDA North Caller Prior Year Amended Budget 1748 336,0571$ 54,8891$ 390,946 Estimated 9-30-17 ; 370,599 $ 54,360 5 424 959 001-5220-041-001, 002, 101, 102, 103, 104, 106,120-5220-041-001 The Communications budget lines provide for the District's expenditures for the repair and maintenance of all radios. NN SDA BC SDA North Colder Portable Radio Batteries $ 2,969 $ 531 $ 3,500 Replacement Battery Chargers $ - $ - VHF Mobile Racios $ - $ VHF Base Pagers Syste, $ - $ - VHF Portable Radios $ - $ - Station Chargers $ - $ - Repair & Misc. Expense $ 2,121 $ 380 $ 2,500 • i:•6,000 Prior Year /mended PM090 16-17 1 $ 23,5141$ 3,841 $ 27,355 Estimated 9-30-17 $ 15,672 $ 2,559 1 $ 18,231 BJB/bb 7-a1-1718-15-1719-1&17/9-25-17 45 001-5220-041-000, 001-5220-0041-111 - 121, 120-041-111-113 TELEPHONE -BUDGET The provision for telephone services includes the cost of telephone service for all District facilities,the cell phone contract cost, the cost of the data lines, data cards and telephone maintenance and repair Budgeted amounts represent current year costs of all components, including contracts in effect for data lines and cell phone service. Prior Year Amended Budget 16-17 $ 249.062 $ 40,680 $ 289,742 Estimated 9-30-17 $ 332,076 $ 54,239 $ 386,315 BJB/bb 7-31-17/8-15-17/9-19.17/9-25-17 46 NN SDA BC SDA North collier Station 10 $ 2,545 $ 455 $ 3,000 Station 12 $ 2,545 $ 455 $ 3,000 Station 40 $ 4,285 $ 767 $ 5,052 Station 42 $ 1,951 $ 349 $ 2,300 Station 43 $ 2,341 $ 419 $ 2,760 Station 44 $ 1,951 $ 349 $ 2,300 Station 45 (Includes ethernet connections) $ 81,427 $ 14,573 $ 96,000 Station 46 $ 2,375 $ 425 $ 2,800 Station 47 $ 2,437 $ 436 $ 2,873 Station 48 $ - $ - Taylor Road Facility $ 509 $ 91 $ 600 Long Distance Service $ 6,107 $ 1,093 $ 7,200 Cell Phones, Data Lines, Network Access - Apparatus $ 205,714 $ 36,816 $ 242,530 Telephone Maintenance/Service $ 4,241 $ 759 $ 5,000 Miscellaneous (Including Other Locations) $ 848 $ 152 $ 1,000 • •C11113132; I Prior Year Amended Budget 16-17 $ 249.062 $ 40,680 $ 289,742 Estimated 9-30-17 $ 332,076 $ 54,239 $ 386,315 BJB/bb 7-31-17/8-15-17/9-19.17/9-25-17 46 001-5220-043-000 001 - 010 120-5220-043-001-004 NN SDA BC SDA North Collier UTILATIES-BUDGET LINE 83 25,446 $ 4,554 $ As with the provision for telephone services, the amount provided in the utilities budget line is determined by actual 147,587 current year expenses, as well as a known FP&L rate increase. 26,413 $ 174,000 Annual Inspection of Ladders, Aerial, Pumps $ 7,634 NN SDA 1,366 $ BC SDA North Collier Station 40 $ 14,348 $ 2,568 $ 16,916 Station 42 $ 7,634 $ 1,366 $ 9,000 Station 43 $ 14,765 $ 2,642 $ 17,407 Station 44 $ 16,026 $ 2,868 $ 18,894 Station 45 $ 74,005 $ 13,244 $ 87,249 Station 46 $ 23,860 $ 4,270 $ 28,130 Station 47 $ 6,279 $ 1 124 $ 7,403 Station 48 $ 20,789 $ 3,720 $ 24,509 NN Essential Services (Taylor Road) $ 19,001 $ 3,400 $ 22,401 Nursery Lane $ 551 $ 99 $ 650 Station 10 & Admin $ 25,351 $ 4,537 $ 29,888 BC Essential Services ("Station" 11) $ 424 $ 76 $ 500 Station 12 $ 7,119 $ 1,274 $ 8,393 Misc - Unforseen Costs Due to Vendor Adj. $ 4,241 $ 759 $ 5.000 TOTAL Prior Year Amended Budget 16-17 $ 237,542 1 $ 381798 $ 276,340 Estimated 9-30-17 1 $ 224,7991 $ 36.7171$ 261,516 001-5220-046-009, 046-100 - 103,120-5220-046-100-103 VEHICLE MAINTENANCE AND REPAIR -BUDGET LINE 84 The District operates a vehicle and apparatus maintenance facility and employs five full-time EVT mechanics to service the fleet. The purchase of parts to accomplish these repairs, as well as other anticipated maintenance items and services are reflected in this expense line. Additionally, the cost fo rextemal repair services is included to provide for services which cannot be performed at our facility. Prior Year Amended Budget 16-17 1 $ 351,114711 67,3531$ 408.500 Eadmated 9-30-17 1 $ 313,7761 $ 51,2491$ 365,025 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 47 NN SDA BC SDA North Collier Outside Repairs -Apparatus $ 25,446 $ 4,554 $ 30,000 Apparatus Parts $ 147,587 $ 26,413 $ 174,000 Annual Inspection of Ladders, Aerial, Pumps $ 7,634 $ 1,366 $ 9,000 Rebuilds (Transmissions PU & R45) $ - $ - $ - Conversion of Div. of Forrestry Vehicles $ 16,964 $ 3,036 $ 20,000 Staff Vehicle Maintenance $ 42,410 $ 7,590 $ 50,000 TOTAL0• 000 Prior Year Amended Budget 16-17 1 $ 351,114711 67,3531$ 408.500 Eadmated 9-30-17 1 $ 313,7761 $ 51,2491$ 365,025 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 47 001-5220-046-010, 013, 146-101 - 224,120-5220-046-200 BUILDING MAINTENANCE -GENERAL -BUDGET LINE 85 The District operates and maintains 10 fire stations, 2 administrative buildings. a fire prevention office, and two support service facilities, one on each end of the District. Contained within this budget line are provisions for routine repair and maintenance items and services for all facilities. Service needs vary from weekly, monthly, annually, and on an as needed basis. Some service or maintenance/repair items cannot accurately be assigned to a specific station or facility; therefore this budget line provides for items by type of service or repair rather than by location. Prior Year Amended B~ 16-17 1 S 273,6 1 1 S 44.6891S 318,300 Estimated 9-30.17 S 275,24 1 $ 44,957 S 320.206 BJB/bb 7-31-17/8-15-1719-19-17/&25-17 48 NN SDA BC SQA NoRh Collier Maintenance -All Facilities Lawn Service - (Inc. spnnklers/weed/fert.) $ 61,240 $ 10,960 $ 72,200 Landscape Maintenance/Tree Trimming $ 11,875 $ 2,125 $ 14,000 Bay Door Service and Repair $ 8,482 $ 1,518 $ 10,000 Glass Replacement $ 848 $ 152 $ 1,000 Lift Station Service & Repair $ 3,393 $ 607 $ 4,000 Pest Control $ 7,634 $ 1,366 $ 9,000 Fuel Pump Service & Repair $ 1,696 $ 304 $ 2,000 Generator Repairs and Service $ 11,875 $ 2,125 $ 14,000 Fuel Tank Repair/Service $ 1,696 $ 304 $ 2,000 Lake Maintenance and Repair (St. 45) $ 1,696 $ 304 $ 2,000 Preserve Maintenance $ 8,482 $ 1,518 $ 10,000 Lawn Sprinkler Repair $ 848 $ 152 $ 1,000 Outdoor Electric Repair & Service $ 4,241 $ 759 $ 5,000 Miscellaneous Outside Repairs/Trg. Tower $ 6,786 $ 1,214 $ 8,000 Replace A/C Comp/Handler $ 5,937 $ 1,063 $ 7,000 Vacant Property Maintenance $ 4,241 $ 759 $ 5,000 Electrical Repairs and Service $ 22,053 $ 3,947 $ 26,000 Plumbing Repairs and Service $ 8,482 $ 1,518 $ 10,000 A/C and Ice Machine Maintenance Contract $ 20,357 $ 3,643 $ 24,000 A/C and Ice Machine Unexpected Repairs $ 3,393 $ 607 $ 4,000 Air Conditioning -Duct Repair/Inspection/Clg. $ 1,696 $ 304 $ 2,000 Appliance Repair and Service $ 1,527 $ 273 $ 1,800 Fire Alarm Testing/Monitoring $ 4,241 $ 759 $ 5,000 Fire Alarm Repairs and Service $ 2,545 $ 455 $ 3,000 Fire Sprinkler Testing $ 4,241 $ 759 $ 5,000 Fire Sprinkler Repairs and Service $ 1,696 $ 304 $ 2,000 Hood/Extinguisher Testing $ 2,969 $ 531 $ 3,500 Hood/Extinguisher Repairs and Service $ 1,696 $ 304 $ 2,000 Miscellaneous Inside Repairs $ 10,178 $ 1,822 $ 12,000 Maintenance Tools and Equipment $ 848 $ 152 $ 1,000 Maintenance Contract - Fitness Equipment $ 4,241 $ 759 $ 5,000 General Maintenance Supplies $ 5,937 $ 1,063 $ 7,000 Handyman $ 11,875 $ 2,125 $ 14,000 Cleaning Service -St. 45, 48, Taylor Rd Weekly $ 16,964 $ 3,036 $ 20,000 Station Audio and Visual Equipment $ - $ - $ - Carpet/Furniture Replacement (Non -Capital) $ - $ - $ - TOTAL 313,500 Prior Year Amended B~ 16-17 1 S 273,6 1 1 S 44.6891S 318,300 Estimated 9-30.17 S 275,24 1 $ 44,957 S 320.206 BJB/bb 7-31-17/8-15-1719-19-17/&25-17 48 120-5220-046-300 NN SDA BC SDA North Collier Station Repairs $ 1,696 $ 304 $ 2,000 Water System Service $ 1,272 $ 228 $ 1,500 Weights & Weight Rack $ - $ - $ - TOTAL BUDGET $ 2,969 $ 531 $ 3,500 Prior Year Amended Budget 16-17 1 $ 3,7821$ 618 $ 4,400 Estimated 9-30.17 15.4731 S 2,527 1 $ 18,000 120-5220-046-301 NN SDA BC SDA North Collier Station Repairs $ - $ - TOTALBUDGET Prior Yew Amended Buftet 16-17 1 $ 2,1491$ 351 $ 2,500 Estimated 9.30-17 1 $ 4.298 1 S 351 1 S 4,649 120-5220-046-302 MAINTENANCE-STATIONBUILDING NN SDA North Collier Station Repairs $ 1,696 $ 304 $ 2,000 Water System Service $ 1,272 $ 228 $ 1,500 TOTAL3,500 Prior Year Amended Budget 16-17 1 $ 9,6281$ 1,5721$ 11,200 Estimated 9-30-17 1 S 4,2981 $ 1,51121$ 5,870 BJB/bb 7-31-17/8-1'5-17/9-1917/9-25-17 49 001-5220-046-300,301 BUILDING MAINTENANCE -STATION #40 -BUDGET LINE 89 NN SDA' BC SDA North Cotler Station Repair and Maintenance $ 1,696 $ 304 $ 2,000 TOTAL BUDGET 17-18 $ 1,696 $ 304 $ 2,000 rktr Yew kiwOodad IlhaftW16-17 Is Z149 1 $ 361 Imo EsVmaW 9-Wlt7 1 $ 2,149 f $ 361 IS zwo 001-5220-046-302, 303 arn�•��.re�;�;►ea►�ua,r_v�y»��r_�rca.�r:�yeanaha��i.��:u NN SDA BC SDA North COMW Station Repair and Maintenance $ 1,696 $ 304 $ 2,000 Z: 1 UK Variance - 16-97 vs. 17-18 (46%) 001 -5220-046-304, 305, 306 NN SDA SC SDA North CoNialrr Station Repair and Maintenance $ 1,696 $ 304 $ 2,000 TOTAL 17-18 BUDGET $ 1,696 $ 0. 2,000 PrWr Yew Alpended Sw0got 16.17 7736 1 OOQ 4 7 UP I s JAC BJB/bb 7-31-17/8-1517&1917/92517 50 001-5220-046-307,308 NN SDA BC SOA North Collier Station Repair and Maintenance $ 1,696 $ 304 $ 2,000 Prior Year Amended Bud 16-17 $ 18,224 $ 2,978 $ 21,200 Estimated 9-30.17 $ 18,2241 $ 2,9761$ 21 200 001-5220-046-309 310 BUILDING MAINTENANCE - STATION #45 -BUDGET LINE 93 TOTAL 17-18 BUDGET $ 1,696 $ 304 $ 2,000 Prior Year Amended Bud 16-17 $ 18,224 $ 2,978 $ 21,200 Estimated 9-30.17 $ 18,2241 $ 2,9761$ 21 200 001-5220-046-309 310 BUILDING MAINTENANCE - STATION #45 -BUDGET LINE 93 NN SDA BC SDA North Collier Station Repair and Maintenance $ 1,696 $ 304 $ 2,000 $ - $ - TOTAL 17-18 BUDGET $ 1,696 $ 0-2,000 Prior Year Amended B 16.17 $ 10 745 $ 1,7661$ 12 500 Estimated 9-30-17 $ 15,960 $ 2,607 1 $ 18,5671 001-5220-046-311, 312 BUILDING MAINTENANCE - STATION #46 -BUDGET LINE 94 NN SDA BC SOA North CO Nier Station Repair and Maintenance $ 1,696 $ 304 $ 2,000 '$ 1 BJB/bb 7-31-17/&15-17/9-19-17/9-25-17 51 001-5220-046-313,314 NN SDA BC SDA North Collier Station Repair and Maintenance $ 1,696 $ 304 $ 2,000 Prior Year Amended Budget 16-17 1 S 7,221 1 S 1,179 $ 8,400 Estimated 9-30-17 1 $ 7,221 1 S 1,1791$ 8,4001 Note: Since opening in 2004, the total amount spent on Station 47 repair and maintenance has been less than 001-5220-046-317,318 NN SQA BC SDA North Collier Station Repair and Maintenance $ 1,696 $ 304 $ 2.000 TOTAL.. 0.2,000 Prior Year Amended 16-17 $ 3.9971$ 6531$ 4,650 Estimated 9.30-17 1 $ 3,9971 $ 6531$ 4 650 001-5220-046-319,320 NN SDA BC SDA North Collier Station Repair and Maintenance $ 1,696 $ 304 $ 2,000 TOTAL.. $ 1,696 S 3042,000 Prior Year Amended Budget 16-17 $ 3,009 1 $ 491 $ 3,500 Estlmated 9-30.17 1 $ 4,2981 S 351 $ 4,649 BJB/bb 7-31-17/8-15-1719-111719-25-17 52 TOTAL 17-18 BUDGET $ 1,696 $ 304 $ 2,000 Prior Year Amended Budget 16-17 1 S 7,221 1 S 1,179 $ 8,400 Estimated 9-30-17 1 $ 7,221 1 S 1,1791$ 8,4001 Note: Since opening in 2004, the total amount spent on Station 47 repair and maintenance has been less than 001-5220-046-317,318 NN SQA BC SDA North Collier Station Repair and Maintenance $ 1,696 $ 304 $ 2.000 TOTAL.. 0.2,000 Prior Year Amended 16-17 $ 3.9971$ 6531$ 4,650 Estimated 9.30-17 1 $ 3,9971 $ 6531$ 4 650 001-5220-046-319,320 NN SDA BC SDA North Collier Station Repair and Maintenance $ 1,696 $ 304 $ 2,000 TOTAL.. $ 1,696 S 3042,000 Prior Year Amended Budget 16-17 $ 3,009 1 $ 491 $ 3,500 Estlmated 9-30.17 1 $ 4,2981 S 351 $ 4,649 BJB/bb 7-31-17/8-15-1719-111719-25-17 52 001-5220-046-006,600,700 FIRE EQUIPMENT REPAIR & MAINTENANCE -BUDGET LINES 98 -102 The cost provisions for the repair and maintenance of fire, SCBA Compressor, fire equipment, computer equipment, and maintenance of the fire hydrants owned by the District are contained in the budget lines below 001-5220-046-007,120-5220-046-007 Maintenance Prior Year Amended Budget 16-17 $ 10,7451$ 1,7551$ 12,500 Estimated 9-30-17 $ 4,229 S 691 $ 4,920 001-5220-046-008 NOZZLE REPAIR & REPLACEMENT -BUDGET LINE 100 NN SDA BC SDA North Collier BC SDA $ North Collier Scott Airpack Repairs & Annual Flow Test $ 12;723 $ 2,276 $ 15,000 Hurst Equipment Repair & Maintenance $ 6,786 $ 1,214 $ 8,000 SCBA Bottle Hydro Testing $ 5,513 $ 986 $ 6,500 Hose Testing $ 16,964 $ 3,034 $ 20,000 Normal Repair & Maintenance of Tools/Equip. $ 15,268 $ 2,731 $ 18,000 TOTALi r 0i Prior Year Amended Budget 16-17 1 $ 52,4361$ 8,564 IS 61,0001 Estimated 9-30-17 1 $ 40,2141 $ 6.5591S 46,773 001-5220-046-007,120-5220-046-007 Maintenance Prior Year Amended Budget 16-17 $ 10,7451$ 1,7551$ 12,500 Estimated 9-30-17 $ 4,229 S 691 $ 4,920 001-5220-046-008 NOZZLE REPAIR & REPLACEMENT -BUDGET LINE 100 Variance - 16-17 vs. 17-18 0% BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 53 NN SDA BC SDA North Collier Nozzle Repair Parts $ 2.121 $ 379 $ 2,500 LDH Intake Repair Parts $ - $ - Appliance Repair Parts $ - $ - TOTAL i18 BUDGET $ 2,121 $ 379 $ 2,500 Prior Year Amended Budget 16.17 1 S 2,149 $ 351 Is 2,500 Estimated 9-30-17 $ 1,032 $ 1681S 1,200 Variance - 16-17 vs. 17-18 0% BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 53 001-5220-051-002, 100 - 105, 120-5220-051-,^,02 The computer maintenance budget provides for the purchase of software, regardless of the cost since software is not a fixed asset, hardware costing less than $1,000, maintenance and updates for existing software, and new software. Incident Command Software Anti -Virus Software Telestaff Communication Annual Software Renewal Email Annual Renewal ImageTrend ESRI/GIS Anno Firewall Maintenance Software Updates/Maint. - phone system Software Updates - Adobe, Publisher, Visio Barracuda Annual Backup Cummings Software -Shop Active 9-1-1- Software Netmotion Software Landesk Software Medical Ed Apps/Software Server Software Computer Workstation Replacements Target Solutions Software Licenses Social Media Silent Partners Annual Maint First Watch Agreement and Reports Deccan annaul maintenance Deccan IFD Stations build Locution Maintenance AV Training/Board Room Budgeting Software MobileEyes MobileEyes (IFCD) One Step Great Plains Upgrades (White Owl) Great Plains Maintenance Total Hardware Miscellaneous Hardware & Software $ 15,013 $ 2,687 $ 17,700 TOTAL 2017-2018 BUDGET $ 342,444 $ 61,286 $ 403,730 Prior Year Amended Bud t 16-17 $ 333,4351$ 54,4601$ 387,895 Estimated 9-30-17 $ 232,958 $ W-050 I $ 271,008 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 54 NN SDA BC SDA North Collie $ 11,027 $ 1,973 $ 13,000 $ 11,027 $ 1,973 $ 13,000 $ 27,991 $ 5,009 $ 33,000 $ 42,410 $ 7,590 $ 50,000 $ 2,121 $ 380 $ 2,500 $ 4,241 $ 759 $ 5,000 $ 29,687 $ 5,313 $ 35,000 $ 8,482 $ 1,518 $ 10,000 $ 4,241 $ 759 $ 5,000 $ 5,937 $ 1,063 $ 7,000 $ 2,545 $ 455 $ 3,000 $ 8,015 $ 1,435 $ 9,450 $ 2,969 $ 531 $ 3,500 See EMS/ALS Budget $ - $ 21,205 $ 3,795 $ 25,000 $ 4,241 $ 759 $ 5,000 $ 25,446 $ 4,554 $ 30,000 $ 3,393 $ 607 $ 4,000 $ 8,228 $ 1,472 $ 9,700 $ 27,142 $ 4,858 $ 32,000 $ 5,089 $ 911 $ 6,000 $ 6,514 $ 1,166 $ 7,680 $ 9,330 $ 1,670 $ 11,000 $ 42,410 $ 7,590 $ 50,000 See Insp Fee Fund $ - $ - See Insp Fee Fund $ 2,545 $ 455 $ 3,000 $ 5,259 $ 941 $ 6,200 $ 5,937 $ 1,063 $ 7,000 $ 327,431 $ 58,599 $ 386,030 $ 15,013 $ 2,687 $ 17,700 TOTAL 2017-2018 BUDGET $ 342,444 $ 61,286 $ 403,730 Prior Year Amended Bud t 16-17 $ 333,4351$ 54,4601$ 387,895 Estimated 9-30-17 $ 232,958 $ W-050 I $ 271,008 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 54 001-5220-046-011.800 HYDRANT, The estimated cost for hydrant maintenance services performed by the District is based on current year actual cost and an analysis of the cost over the last four years. SDA Oct" North Collier Hydrant Maintenance $ 4,241 $ 759 $ 5,000 Hydrant Repairs (Outside Vendor) $ 29,687 $ 5,313 $ 35,000 i 2017-2018 @ ! P @ P Prior Year Amended Budget 16-17 $ 34,384 $ 5,616 $ 40,000 Estimated 9-30-17 $ 15,330 $ 2,505 $ 17,835 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 55 001-5220-052-004, 600 - 604, 120-5220-052-004 EMERGENCY MEDICAL/ALS SERVICES/ SUPPLIES -BUDGET LINE 103 The Board of Fire Commissioners has identified the ALS program as a District priority. The 2017-2018 Budget provides for replacement of medical supplies necessary to provide BLS and ALS service throughout the District. NN SDA BC SDA North Collier ALS/Medical Supplies $ 98,391 $ 17,609 $ 116,000 Philips Extended Warranty 2 Year Warranty in place $ - Oxygen Refill and Service $ 5,513 $ 987 $ 6,500 Zoll Monitor Extended Warranty $ 1,018 $ 182 $ 1,200 Medication Dispense/Security System -Lease $ 12,469 $ 2,231 $ 14,700 BLS Replacement Bags (350) $ - $ - Combat Type Medical Kit $ - $ - Medical Appst/Software $ 3,393 $ 607 $ 4,000 CE Broker $ 2,121 $ 380 $ 2,500 EMS Survey Tool $ - $ - EMS/Chiefs Council Supplies $ 1,696 $ 304 $ 2,000 Miscellaneous $ 424 $ 76 $ 500 Lease - Monitors See debt service $ - FirstPass QA Tool $ - $ - Lucas Monitor Preventive Maint. Program $ 18,406 $ 3,294 $ 21,700 TOTAL 2017-2018 .. rr Prior Year Amended Budget 16-17 1 $ 139,5651$ 22,7951$ 162,360 Estimated 9-30-17 1 $ 143,8321 $ 23,4921$ 167,324 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 56 001-5220-051-000,120-5220-051-000 OFFICE SUPPLIES - BUDGET LINE 104 NN SDA BC SDA North Collier TOTAL 2017-2018 BUDGET $ 55,133 $ 9,867 $ Prior Year Amended Budget 16-17 5 55,8741$ 9,126 IS 65,000 Estimated 9-30-17 1 S 67,701$ 11,073 1 $ 78,872 001-5220-051-003 OFFICE SUPPLIES - PREVENTION - BUDGET LINE 101 NN SQA BC SDA North Collier Fire Prevention/Inspection Forms and Contracts & Mis. Supplies $ 8,482 $ 1,518 $ 10,000 Prlor Year Amended Sudget 16-17 $ 8.6961$ 11,4041S 10,000 Estimated 9-30-17 1 $ 8,5961 S 1,4041$ 10,000 Variance - 16-17 vs. 17-18 - 0% BJB/bb 7-31-17/&15-17/9-19-17/9-2517 57 001-5220-052-001, 100 -102, 120-5220-052-001, 120-5220-052-001 The Protective Gear budget line provides for replacement of protective gear (excluding bunker pants and coats, which are identified as capital assets), and the purchase of protective gear for new employees. This expense line also provides for the mandatory inspection, cleaning and repair of existing protective gear. Gloves, Hoods, Helmets, Visors New Particulate Hoods (150) Protective Gear for New Hires Inspection, Cleaning & Repair Extractor Maintenance Unexpected Gear Repair Wildland /Extrication Gear (25 sets) Bunker Boots NN SDA SC SDA North Collier $ 16,964 $ 29,263 $ 424 $ 4,241 $ 12,723 S 8,482 $ 3,036 $ 5,237 $ 76 $ 759 $ 2,277 $ 1,518 20,000 $ 34,500 $ 500 $ 5,000 $ 15,000 $ 10,000 Prior Year AmendedSwk et 00 16-17 $ 82,951 $ 13,549 $ 96,5 Estimated 9-30-17 $ 66,338 $ 12,382 $ 78,720 001-5220-052-002, 200 - 206, 120-5220-052-002 Pursuant to Article 17 of the Collective Bargaining Agreement and Section 16 of District Policies, each bargaining unit and non -bargaining unit sworn employee is alloted a specific dollar amount per year for the purchase of uniforms. In addition the District also provides uniforms on a limited bases for administrative staff and Fire Commissioners. This budget line also provides for the replacement of sworn employees' boots, and badges required resulting from promotions. NN SDA BC SDA North Colper Annual Uniform Allotman Per Contract $ 58,899 $ 10,541 $ 69,440 Replacement Boots, Uniforms and Brass $ 12,723 $ 2,277 $ 15,000 Promotions $ 4,241 $ 759 $ 5,000 Non -Bargaining Employees $ 6,362 $ 1 139 $ 7,500 Honor Guard $ 2,545 $ 455 $ 3,000 Commissioners $ 848 $ 152 $ 1,000 TOTAL100 ,940 Prior Year Amended Budget 16-17 $ 107,398 $ 17,5421$ 124 940 Estimated 9-30-17 $ 125,947 $ 20,2051$ 146152 BJB/bb 7-31-17/&1517/9-1&17/9-2517 58 001-5220-052-000,301 -303,120-5220-052-000 STATION SUPPLIES -BUDGET LINE 109 Provision for basic supplies for all stations is made within this budget line. NN SDA BC SDA North Coffler Cleaning & Maintenance Supplies S 48,093 $ 8,607 56,700 DOTAL -2017-2018 BUDGET $ 48,093 $. 8,607 $ 56,700 Prior Year Amended Budgirt 16-17 $ 48,739 $ 7,961 $ 56,700 Estimated 9-30.17 $ 52,304 8,5421$ 60 846 001-5220-044-000 LEASEIRENTAL OF e This budget line provides for the annual lease cost of the vehicle replacement and maintenance agreement with Enterprise. These vehicles leases are not lease to own, as the apparatus leases provide. NN SDA BC SDA North Collier Annual rental/lease payment - 17 Vehicles $ 78,034 $ 13,966 $ 92,000 TOTAL„o Prior Year Amended Budget 16-17 $ 44,699 $ 7,301 $ 52,000 Estimated 9-30.17 $ 44,699 $ 7,301 $ 52,000 001-5220-051-001,120-5220-051-001 OFFICE EQUIPMENT (NON -CAPITAL) -BUDGET LINE 111 The Office Equipment (Non -Capital) budget line provides for the purchase of small office equipment (items with an individual cost of less than $1,000 such as printers and fax machines), printer cartridges, and the lease and maintenance fees for photocopy machines. ITEM Copier Leases & Maintenance Postage Machine Lease Printer Replacement Printer Cartridges/Supplies Misc. Office Equip. NN SDA BC SDA North Coitler $ 30,535 $ 5,465 $ 36,000 $ 848 $ 152 $ 1,000 $ 2,545 $ 455 $ 3,000 $ 3,393 $ 607 $ 4,000 $ 1,696 $ 304 $ 2.000 TOTAL46,000 Prior Year Amended Budglipt 16-17 $ 39,542 $ 6,4581$ 46,0001 Estimated 9-30-17 37,706 $ 611591$ 43,865 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 59 001-5220-051-004 OFFICE EQUIPMENT -NON -CAPITAL -PREVENTION -BUDGET LINE 112 As with office supplies, the Fire Prevention Bureau submits an annual list of non -capital office equipment requirements for items specific to the Bureau. NN SDA BC SDA North Collier Miscellaneous Items $ 848 $ 152 $ 1,000 TOTAL1,000 Prior Year Amended Sucloot 16-17 i 860 S 1401S 1000 EsUmated 9-30-17 2,311 S 378 1 S 2,689 001-5220-0052-001, 500 - 505, 120-5220-052-001, 120-5220-052-001 Contained within the Fire Equipment (non -capital) budget line are provisions for the purchase of fire equipment with a cost of less than $1,000 per item, including replacement fire hose. NN SDA BC SDA North Collier Foam 8 Absorbant $ 16,964 $ 3,036 $ 20,000 Nozzle Replacements $ 2,121 $ 380 $ 2,500 Hose Replacement $ 21,205 $ 3,795 $ 25,000 Bottles 8 Facemasks (new hires) $ - $ - $ - Cordless Tool Replacement $ - $ - $ - Escape Harness Packs (60) $ - $ - $ - Replacement MREs in "Go Packs" $ - $ - $ - 45 Min Bottles for new Airpacks (8) $ - $ - $ - 45 Min Bottles for 10812 (8) $ 6,107 $ 1,093 $ 7,200 Wireless Headsets (4 Spare, 4 Spare Stations) $ - $ - $ - Scott Facemasks, AV300HT (167 Replacement and 12 New Hires) $ - $ - $ - Miscellaneous E ui ment $ 37,745 $ 6,755 $ 44,500 TOTAL0i Prior Year Amended &jdget 16-17 1 $ 101,3471S 1615531$ 117,900 Estimated 9.30-17 $ 1513-471 S 16.5531$ 117,900 001-5220-052-008,0i: SHOP EQUIPMENT/SUPPLIES - NON -CAPITAL - BUDGET LINE 114 The Shop Equipment -Non -Capital 8 Supplies budget line provides for the purchase of small equipment costing less than $1,000 and basic supplies for the shop/maintenance facility. NN SDA BC SDA North Calder Miscellaneous Small Tools and Equipment $ 8,482 $ 1,518 $ 10,000 BJB/bb 7-31-17/&15-17/3-1317/9-25-17 60 Shop Towels and Rags $ 1,696 $ 304 $ 2,000 Miscellaneous Supplies (Oil, etc) $ 6,362 $ 1,139 $ 7,500 TOTALe e $ 2,960 $ 19,500, Prior Year Amended Budget 16-17 $ 19,341 $ 3,159 $ 22,500 Estimated 9-30-17 $ 13,553 $ 2,214 $ 15,767 BJB/bb 7-31-17/8-15-17/9-19-1719-25-17 61 001-5220-052-009 The Warehouse/Logistics Supplies 8 Equipment budget line provides for supplies and small equipment required to operate the warehouse and logistics center for the District, including supplies to clean and maintain protective equipment. The 2015-2016 budgeted amount also reflects the provision for replacement fixed asset and inventory tags. NN SDA BC SDA North Collier Laundry Soap & Supplies for Bunker Gear $ 1,272 $ 228 $ 1,500 RFID Tags 3 Related Supplies $ 6,362 $ 1 139 $ 7,500 Replacement Fixed Asset/Inventory Tags $ 2,121 $ 380 $ 2,500 Miscellaneous Shipping/Receiving Supplies $ 424 $ 76 $ 500 Engraving Supplies $ 424 $ 76 $ 500 TOTAL.0 Consultant - Fire Fee Assessment $ 63,615 $ 11,385 $ 00 Prior hoar Amended Suftet 16-17 $ 5,1 59 8421S 6.000 Estimated 9-30.17 S 5,47 $ 894 S 6,366 001-5220-031-000, 100 - 108, 120-520-031-000 The District routinely utilizes a large variety of professional services, including legal, actuarial, benefit consultant, medical director and other professional service fees NN SDA BC SDA Nath Coliler Legal Fees (Including Legislative) $ 127,230 $ 22,770 $ 150,000 Benefit Consultant $ 40,714 $ 7,286 $ 48,000 Benefit Survey (FGCU) $ 29,687 $ 5,313 $ 35,000 Medical Director $ 25,446 $ 4,554 $ 30,000 Information Technology Services $ 50,892 $ 9,108 $ 60,000 Public Information (Referendum) $ 25,446 $ 4,554 $ 30,000 Consultant - Fire Fee Assessment $ 63,615 $ 11,385 $ 75,000 Miscellaneous Professional Fees $ 8,482 $ 1,518 $ 10,000 • r r 00r Prior Year Amended Budget 16-17 S 202,0061$ 32,99416 235.000 Estimated 9-30-17 S 210,311 S 34,3501S 244,661 BJB/bb 7-31-17/8-15-17/9-19-17/9-25.17 62 001-5220-049-009.120-5220-049-009 Estimated fees are computed based on the budget of the Collier County Propery Appraiser's Office, and are provided to the District via written correspondence from that office. These fees constitute the District's share of the Property Appraiser's annual budget, which is how the Property Appraiser is compensated for providing property tax assessments to the District. NN SDA BC SDA North Collier Prior Year Amended Bud 16-17 $ 217.0441$ 35,4501$ 252,494 Estimated 9-30-17 1 $ 217.0441 $ 35,4501$ 252,494 001-5220-049-000,120-5220-049-000 COLLIER COUNTY TAX COLLECTOR FEES -BUDGET LINE 118 The Collier County Tax Collector receives an annual fee for collecting and distributing Ad Valorem taxes to the District. The fee is identified in Section 192.091, Florida Statute, and utlizes a formula based on Ad Valorem collected. Estimated Tax Revenue Collector's Fees: NN SDA BC SDA Nash Collier 29,300,110 $ 5,020,163 $ 34,320,273 3% of first $50,000 per SDA $ 2,545 $ 455 $ 3,000 2% on Balance $ 584,281 $ 104,567.13 $ 688,848 Postage $ 2,969 $ 531 $ 3,500 TOTALi r18 BUDGET $ 589,794 $ 105,554 Prior Year Amended Budget 16-17 $ 522,6171S 85,3601$ 807 977 Estimated 9-30-17 $ 522,617 $ 85,3601$ 607,9771 001-5220-032-000,120-5220-032-000 AUDITORFEES-BUDGET The District is required by law to undergo an annual audit by an independent auditing firm and must an audited financial statement to the Auditor General on an annual basis. NN SDA BC SDA North Collier Prior Year Amended Budget 16.17 1 $ 68.7681$ 11,2321$ 80 000 Estimated 9.30.17 S 82 587 $ 10,223 1 $ 71810 BJB/bb 7-31-17/8-15-17/9-1117/9-25-17 63 001-5220-049-004 SPECIAL ASSESSOR'S FEE FOR ST. #44 -WATER /SEWER -BUDGET LINE 121 This assessment reflects the District's portion of the water and sewer assessment allocated to Station #44 by the Station #44 by the County. Collier County Emergency Services pays 38% of this assessment and the District pays 62% of the assessment. NN SDA BC SDA North Collier Prior Year Amended Budget 16-17 $ 5,587 $ 913 $ 6,500 Estimated 9-30-17 $ 6,317 $ 1,032 $ 7,349 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 64 001-5220-040-000, 101 - 105, 200, 300, 400, 500, 600, 700, 800, 1200-5220-0040-0000 TRAVEL AND PER DIEM -BUDGET LINE 122 j This account reflects all travel and per diem reimbursement expenses for all conferences, seminars and employee and Commissioner travel outside of the District boundaries. Because budget requests for training, seminars and conferences are submitted as much as one year in advance of the event, the exact location and associated travel costs are often unknown and therefore such costs are estimated. I NN SDA BC SDA North Collier Travel/Per Diem: Fire/EMS Conferences Essential Travel, Including Legislative Session $ 5,937 $ 1,063 $ 7,000 FFCA/Fire Rescue East (Admin) $ - $ - Prevention Training $ - $ - FASD $ 2,545 $ 455 $ 3,000 FPELRA $ - $ - Accreditation $ - $ - EVT/Mechanics $ - $ - Information Technology $ - $ - Travel/Per Diem - Community Outreach $ - $ - Honor Guard $ - $ - Miscellaneous $ - $ - TOTAL o 10,000 Prior Year Amended Budget 16-17 $ 32,6831$ 5,3171$ 38,000 Estimated 9-30-17 1 $ 29,4481 $ 4,8091$ 34,257 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 65 001-5220-048-000 120-5220-048-000 PUBUC INFORMATION AND COMMUNITY OUTREACH -BUDGET LINE 123 NN SDA WSIDA Nath Colder S - EMS Council See EMS/ALS Budget $ - Miscellaneous Supplies $ 1,527 $ 273 $ 1,800 Newsletter $ 1,272 $ 228 $ 1,500 Website Hosting/Maintenance $ 2,036 $ 364 $ 2,400 TOTAL: BUDGETor Prior Year Amended Budget 16-17 2,837 $ 4631$ 3,300 Estimated 9.3047 $ 2,8371 $ 463 $ 3,300 001-5220-052-003, 120-5220-052-003 This expense line reflects vehicle fuel and oil for all District apparatus and vehicles. Because of the fluctuation of gasoline and diesel prices, and the inability to accurately predict what those prices will be in the coming fiscal year, cost estimates for budgetary purposes have been made based on current year expenditures NN SDA BC SDA North Collier Prior Year Amended Budget 16-17 $ 1150,4301S 24,5701$ 175000 Estimated 9-30-17 $ 191.5231 S 31,221 $ 222,7441 BJB/bb 7-31-17/8-155-17/9-19-17/9-25-17 66 001-5220-054-911.-001, 002, 201 - 203, 301 - 303. 701, 801 - 806, 901 - 910. 120-5220-054-001 This budget line reflects payment of the cost of public college courses, Florida State Fire College courses and paramedic college courses. These costs have been segreated from other training course costs to more easily identify the cost of college level courses. EMT/PMD Recertification $ NN SDA $ BC SDA North Collier Total Operations (Fire/EMS/Training) $ 62,470 $ 11,180 $ 73,650 Florida State Fire College, Hubnc Gollege , PMD $ 69,552 $ 12,448 $ 82,000 TOTAL $ 69,552 $ 12,448 $ 82,000 Operations (Fire/EMS/Training): $ 683 $ 122 $ 805 Specialty Training - Guest Speakers $ - $ - $ 1,500 5-21, IC -300, S-330, 5-130, S-190 $ - $ - FDIC $ - $ - Promotional Testing $ 13,147 $ 2,353 $ 15,500 Joint Training with CCSO - Helicopter special $ - $ - $ - ops, wildfire and rescue $ 41,562 $ 7,438 $ 49,000 Crisis Intervention Training $ 1,696 $ 304 $ 2,000 Terrorism Training $ - $ - Fire/EMS Conferences $ - $ - Emergency Medical Service Conferences $ - $ - $ 13,200 Associate Med. Director Educational Opp. $ - $ - ALS/BLS Card Renewals $ 2,460 $ 440 $ 2,900 EMT/PMD Recertification $ 3,605 $ 645 $ 4,250 Total Operations (Fire/EMS/Training) $ 62,470 $ 11,180 $ 73,650 Dive Team $ - Annual Instructor Recertifications $ 589 $ 106 $ 695 Annual Member Recertifications $ 683 $ 122 $ 805 Total - Dive Team $ 1,272 $ 228 $ 1,500 HazMat Team Adjuncts $ - $ - Total - HazMat Team $ - $ - $ - Technical Rescue Team USAR Membership (REIMBURSEABLE) $ 11,196 $ 2,004 $ 13,200 Training - New Members $ - $ - Training and Adjunct $ - $ - Total - Technical Rescue Team $ 11,196 $ 2,004 $ 13,200 Boat Team Education and Training $ 424 $ 76 $ 500 Total - Boat Team $ 424 $ 76 $ 500 Fire Prevention Certifications $ 23,029 $ 4,121 $ 27,150 Total - Fire Prevention $ 23,029 $ 4,121 $ 27,150 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 67 Administration Payroll Certification Conference Information Technology HR Collier Monthly Seminars & Annual Conference Mechanics Training - EVT Professional Development FFCA C FASD Fire Rescue East (2) FPELRA Annual Conference (2) FPELRA Negotiations Training (1) Accreditation Commissioners - FASD Conference & Mtgs (4 $ 1,272 $ 228 $ 1,500 $ 1,612 $ 288 $ 1,900 Commissioners) $ - $ - Propane Total - Administration $ 2,884 $ 516 $ 3,400 4,665 $ 835 $ 5,500 Auto Extrication Training $ - $ TOTALi - Miscellaneous $ 848 $ ,00 1,000 2,3171S 16,500 Prior Year Amended Budget 16-17 1 $ 179,0901 $ 29,226 $ 208,316 Estimated 9-30-17 1 $ 175,079 1 $ 28,596 $ 203,675 001-5220-054-821-830,120-5220-054-821 The expenses contained within this budget line are for the supplies and equipment required for operational training. Priar or YeAmended B 16-17 $ NN SDA BC SDA North Collier Propane $ 5,937 $ 1,063 $ 7,000 Smoke Machine Supplies $ 4,665 $ 835 $ 5,500 Auto Extrication Training $ - $ - $ - Miscellaneous $ 848 $ 152 $ 1,000 Priar or YeAmended B 16-17 $ 14,183 $ 2,317 $ 16,500 Estimated 9-30-17 1 $ 14,1831 $ 2,3171S 16,500 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 68 001-5220-099-000,120-5220-099-000 MISCELLANEOUS EXPENSE -BUDGET LINE 128 The Miscellaneous Expense budget line provides for expenses, often one-time in nature, which cannot be categorized to anothi expense line or are not significant enough to warrant an expense line. NN SDA BC SDA North Collier TOTAL 2017-2018 BUDGET $ 8,482 $ 1,518 $ 10,000 Prior Year Amended 16-17 1 $ 8.5961 $ 11,4041S 10,000 Estimated 9-30-17 $ 8.598 $ 1,4041$ 10,000 001-5220-054-000 SUBSCRIPTIOND DUES -BUDGET This budget line contains financial provision for the Florida Association of Special District Dues, as well as other professional association dues and subscriptions. NN SDA BC SDA North Collier ITEM CC Fire Chiefs Association $ 509 $ 91 $ 600 FPELRA $ - $ - $ - Dept. of Com. Affairs -Special Districts $ 297 $ 53 $ 350 Miscellaneous $ - $ - $ - Florida Fire Chief Association $ 509 $ 91 $ 600 Int. Assoc. of Fire Chiefs $ 509 $ 91 $ 600 Florida Assoc. of Special Dist. $ 3,393 $ 607 $ 4,000 Sam's Club $ 254 $ 46 $ 300 Florida CERT Assoc. $ 254 $ 46 $ 300 American Payroll Association $ 254 $ 46 $ 300 SW Florida American Payroll Association $ - $ - $ - Accreditation Registration $ 7,040 $ 1,260 $ 8,300 Society for Human Resource Management $ - $ - $ - Payroll Source $ 140 $ 25 $ 165 HR Collier $ 85 $ 15 $ 100 TOTALi17-2018 BUDGET 13,245 $ Z370 $ 15,4616 P or Year Arrw#Wod BuckW 16-17 $ 6.9281 $ 1,132 1 $ 777 8 060 Estimated 9-30.1T $ 8,298 1 $ I.386 903 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 69 001-5220-054-010 Identified below are membership dues unique to the Fire Prevention Bureau,as well as the cost for the subscription to NFPA codes. FL Chapter IAAI NFPA Subscription Service Collier County Fire Marshals Florida Fire Marshal 8 Inspector Assoc. National Assoc. of Fire Invest. Int. Assoc of Arson Inv. NN SDA BC SDA North Collier 50 6 Prior Year Amended Budget 16-17 1 $ 516 $ 84 $ 600 Estimated 9-30-17 1 $ 1,386 $ 2281S 1,624 Variance - 16-17 vs. 17-18 - 0% 001-5220-054-011,120-5220-054-011 The District is required by Florida Statute to provide legal notice of regular meetings, workshops and special meetings. The District is also required to publically advertise for Request for Proposals, Invitations to Bid, and the sale of surplus equipment in accordance with District Policies. NN SDA BC SDA North Collier Prior Year Amended Budget 16-17 1 $ 8,5961$ 1,404 $10,000 Estimated 9-30-17 $ 6,877 $ 1,123 S 8000 BJB/bb 7-31-17/8-1517/&1117/9-25-17 70 001-5220-054-200 DIVE RESCUE TEAM -BUDGET LINE 132 The Dive Team consists of 27 members who respond to any and all situations involving water rescue, including vehicles in canals, drownings and recovery of evidence. Each member is a Dive Rescue I certified diver, and 3 members are Public Safety Scuba Instructors. BJB/bb 7-31-17/8-1517/9-19-17/9-255-17 71 NN SQA BC SDA North Collier DIVE TEAM EQUIPMENT Annual Equipment Maintenance $ 848 $ 152 $ 1,000 Buoyancy Compensators (2) $ 679 $ 121 $ 800 Scuba Pro Air 2 (3) $ - $ - Replacement RDP Box $ - $ - Misc. Weights $ - $ - Misc. Equipment $ - $ - Engine Top Vvater Gear Bags (15) $ - $ •2017-2018 BUDGET $ 1,527 $ 273 $ 1,800 Prior Year Amended Budget 16-17 $ 6.266 $ 1,023 1 $ 7,289 Estimated 9-30-17 1 $ 6,266.1 $ 1,023 1 $ 7,289 BJB/bb 7-31-17/8-1517/9-19-17/9-255-17 71 001-5220-054-980, 951,952 FIRE PREVENTION MATERIALS & SUPPLIES -BUDGET LINE 133 The Deputy Chief of Life Safety and Prevention] annually submits a list of the anticipated requirements for the Fire Prevention Bureau, including key boxes, anemometers to test air flow, NFPA reference mannuals and basic operational supplies, as well as public education material requirements NN SDA BC SDA North Collier ITEM Prevention/Public Education Materials $ 16,964 $ 3,036 $ 20,000 Public Education $ - $ - Key t3oxes $ 8,482 $ 1,518 $ 10,000 K Y Boxes have Cost RecoverVI TOTAL30,0001 Prior Year Amended Budget 16-17 $ 47,278 1 $ 7.722 1 $ 55,000 Estimated 9-30-17 $ 35.842.1 $ 5,854 1 $ 41,696 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 72 001-5220-054-008 HAZARDOUS MATERIALS TEAM -BUDGET LINE 134 The HazMat Team consists of 39 members. The team members are trained to deal with chemical spills, leaks and radiological emergencies, as well as terrorism and weapons of mass destruction. The District's HazMat Team is one of twenty-three District Response Teams recognized by the Department of Community Affairs. BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 73 NN SDA BC SDA North Collier HAZMAT EQUIPMENT Spill/Leak Control Supplies $ - $ - Replacement of Sampling Supplies $ - $ - Replacement Level A Suits $ - $ - Betts Emergewncy Unload Device $ - $ - Safe Transport Lid Loc Dome Clamps $ - $ - Communication Equipment in Suits $ - $ - Recovery vessel Overpacks $ - $ - MSA 4 Gas Monitor Supplies/Maintenance $ - $ - Misc. supplies and maintenance $ 848 $ 152 $ 1,000 TOTAL6 t - !!! Prior Year Amended Budget 16-17 1 $ 13,7541 $ 2,2461$ 16,000 Estimated 9-30-17 1 $ 4,298 $ 7021S 5,000 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 73 001-5220-054-009 The District's 30 member Technical Rescue Team is trained for confined space, structural collapse, trench collapse and high angle rescue operations. HIGH ANGLE CONFINED SPACE Protective Gear, Gloves, Eye Protection Replacement supplies Replacement Helmet Lights Replacement Rescue Rope Replacement Rope Bags Replacement Pulleys 1 Class III Harness Kevlar Chaps (2) Tree Climber Saw -rural area H/A rescue Total -High Angle Confined Space TRENCH/STRUCTURAL COLLAPSE Replacement Lumber Electric Rebar Cutter Replacement DeWalt Batteris Total-Trench/Structural Collapse NN SDA BC SDA North Collier $ 848 $ 152 $ 1,000 $ 1,696 $ 304 $ 2,000 $ 2,545 $ 455 $ 3,000 Prior Year Amended Budget 16-17 1 $ 8 251$ 1,4251$ 10,150 Estimated 9-30-17 1 $ 4,298 $ 7021$ 5,000 001-5220-054-100 BOAT TEAM -BUDGET LINE 137 The District's Boat Team consists of 16 boat operators, 13 of whom are Coast Guard certified boat captains. The Boat Team assists in water rescue operations. NN SDA BC SDA North Collier Boat Slip Annual Maintenance Fee $ 3,223 $ 577 $ 3,800 Maintenance equipment/materials $ 424 $ 76 $ 500 Inflatable Life Jackets (2) $ - $ - Portable Fuel Station $ - $ - IPAD with Case $ - $ - Handheld Spotlights (3) $ - $ - Boat Life Maintenance and Repairs $ $ - 'TOTALi f Budget - 1 1 Prior Year Amended Budget 16-17 $ 4,977 $ 8131$ 5,790 Estimated 9-30.17 4,9771 $ 8131$ 6,790 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 74 001-5220-054-007 The District currently has 22 trained and equipped Community Emergency Response Teams (CERT) within the District comprised of over 350 concerned citizens. These team members receive special training to respond to assist others during a storm, hurricane or other emergency event. The CERT education program consists of a 24 hour course presented over 8 weeks, free of charge. The expenses identified in this budget line are the materials. supplies and equipment required to continue training additional teams and to support the existing teams. NN SDA BC SDA North Collier CERT Functions $ 848 $ 152 $ 1,000 CERT Supplies $ 2,545 $ 455 $ 3,000 CERT Grant Purchases (Possible Grant Funding) $ 5,937 $ 1,063 $ 7,000 TOTAL 2017-2018 1 $ 1,670 f c Prior Year Amended Budget 16-17 1 $ 11,605 1 $ 1,8951$ 13,500 Estimated 9-30-17 1 $ 7,7621 $ 1,2671S 9,029 001-5220-054-401,120-5220-054-401 CONTINGENCY -BUDGET This budget line is provided to cover excess expenditures from other budget lines during the course of the year. NN SDA BC SDA North Collier TOTAL 2017-2018 BUDGET Prior Yaw Amended Budget 16-17 1 $ - $ - I $ - Estimated 9-30-17 1 $ - $ SERVICE - BUDGET LINES f AND 141 -DEBT The provision for debt service is to fund the interest fee lease for the purchase of medical equipment, 3 engines and a ladder truck approved in 15-16 and an additional replacement apparatus 16-17. NN SDA BC SDA North Collier Equipment (Lucas Chest Compressors) Lease Principal $ 27,183 $ 4,865 $ 32,048 Apparatus Lease (3 Engines, 1 Ladder)-Princ $ 194,933 $ 34,887 $ 229,819 Apparatus Lease (Tower) - Principal $ 142,632 $ 25,527 $ 168,159 Apparatus Lease (Tower) - Interest $ 20,641 $ 3,694 $ 24,335 Apparartus Lease -(3 Eng, Ladder) Interest $ 55,484 $ 9,930 S 65.414 Total Principal $ 364,748 $ 65,278 $ 430,026 Totallnterest $ 76,125 $ 13,624 $ 89,749 TOTAL 17-18 $ 440,873 $ 78,902 PAx Year Amended Bu 16-17 $ 299.778 $ 48,963 $348 741 jEsdinated 9.30.7 1 $ 29%7781 $ 48,0631$ 348,741 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 75 001-5220-062-000,001-5220-064-003 yAPIT/_\ .' /t\IOn h'dJ:iUTaMa1TS &EQUP-MEAICailZti���IJ1>�li� This budget line reflects expenditures for all of the District's stations which meet the criteria of a fixed asset (cost of $1,000 or more, and a life expectancy of more than one year) or a capital improvement NN SDA BC SDA North Collier Station #40 Training Tower Refurbish (Window, etc) $ - $ - $ Paint Bay Ceiling $ - $ - $ - Total -Station #40 $ - $ - $ - Station #42 Paint Bay Walls $ - $ - $ - Rowing Machine $ - $ - $ Recliners (5) $ - $ - $ - Total -Station #42 $ - $ - $ - Station #43 Paint Bay Walls Rowing Machine Truck Exhaust Fan Recliners (3) Total - Station #43 Station #44 Recliners (9) Replace Shower Total - Station #44 Station #45 Recliners (3) Rowing Machine Paint Tower Total - Station #45 Station #46 Replace Overhead Bay Doors (4) FROM ST 46 RESERVE Paint Station Exterior Locution Expansion Rowing Machine Total - Station #46 Station #47 Screen in rear Lanai Pressure Washer Bunker Gear Extractor (Washing Machine) Total - Station #47 Station #10 Rowing Machine Carport for BC Vehicle Paint Exterior - Admin Total - Station #10 Station #12 Turn Lane 4 Recliners Relocate Washer BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 76 If grant approved this fiscal year will need to budget expenditure $ 28,839 $ 5,161 $ 34,000 $ 28,839 $ 5,161 $ 34,000 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 76 Relocate Gear Room $ Door for Ice Machine Room $ Total -Station #12 $ Essential Services #1 (Taylor Roadl Roll Up Overhead Doors (Maintenance Facility) $ Parking Area Behind Facility (NATALI TO CHECK WITH COUNTY) $ Total - Essental Services #1 $ S Essential Services #2 ("Station 11") Remove and Rebuild Maintenance Facility S S Total - Essential Services #2 All Locations Air Conditioner Replacements as Needed $ 25,446 $ 4,554 $ 30,000 Total -All Locations $ 25,446 $ 4,554 $ 30,000 T AL API AL U -ALL FACILITIES 17-18 1 $ 54,285 $ 9,7151$ 64.000 Prior Year Amended Budget 16-17 $ 326,4 3 $ 53,317 $ 379,750 Estimated 9-30-17 1 $ 303.6451 $ 49,5951$ 353,240 001-5220-064-001, 200 - 202 Purchases of capital fire equipment for the 2017-2018 fiscal year consists of replacement equipment which may not be specifically identified at this time, but which need may arise throughout the fiscal year. NN SDA BC SQA North Collier Thermal Imaging Cameras (3 Squads) $ - $ - Equipment for New Aerial $ $ - Cordless Scene Lights $ - $ - LDH Intakes to replace aging units $ - $ - Scott Airpacks (8) without bottles $ - $ - Wireless Headset Systems (5) $ - $ - Wireless Headset Systems (2 Man) BCs $ - $ - Plastic Cribbing Sets (E10) $ - $ - Auto Cribbing (6 sets) $ - $ - Electric/Battery Powered PPVS (3) $ - $ - Replacement Fire Equipment $ 42,410 $ 7,590 $ 50,000 TOTALi •050,000 Prior Year Amender! Budget 16-17 $ 180,6881$ 29,5121$ 210,200 Estimated 90-17 $ 180,778 $ 28 260 $ 187,038 BJBlbb 7-31-1718-15-17131&171&2517 77 001-5220-064-017 This budget line provides for the purchase of replacement protective gear, as well as the purchase of gear for new hires which may not be funded by impact fees. NN SDA BC SDA North Collier 25 Sets Replacement Bunker Gear $ - $ - 20 Sets Replacement Gear- Replacement Positions $ 33,080 $ 5,920 $ 39,000 20 Sets Replacement Gear - Unexpected Inspection Failur $ 42,410 $ 7,590 $ 50,000 Ballistic PPE (50% Grant Funded) $ 9,330 $ 1,670 $ 11,000 TOTAL1100,000 Prior Year Amended Budget 16-17 1 $ 138,396 0S 22,604 IS 161,000 Estimated 9-30-17 1 $ 102,768 1 S 16,7851S 119,553 001-5220-064-002 NN SDA BC SDA North Collier ALS Equipment - Rehab Unit and Special Events, Including Lucas Monitor $ - $ - MedVault (Controlled Substance Security) $ - $ - AEDs (20) $ - $ - ALS Medical Gear for New Positions $ - $ - Prior Year Amended Budget 16-17 1 $ 73,0661$ 11,934 S85,000 Estimated 9-30-17 1 $ 73,0661 $ 11,9341S 85.000 BJB/bb 7-31-17/8-1517/9-19-17/9-2517 78 001-5220-064-009, 120-5220-064-009 NN SDA BC SDA North Collier 800 MHZ Mobil Unit (Polaris) $ - $ - Rear Mobile Units (Squads) (3) $ - $ - 800 MHZ XG075P (Sq 44) $ - $ - 800 MHZ XG-75P FFS Cal 5 $ - $ - 800 MHZ XG-25M EOC Radios $ - $ - 800 MHZ XG-25M Logistics $ - $ - 800 MHZ XG-25P Logistics $ - $ - External Antenna Station 45 $ - $ TOTAL- - ■ Prior Year Amended Budget 16-17--T- 8.5961$S 1,4041$ 10,000 Estimated 9-30-17 1 $ 8,5961 $ 1,4041$ 10,000 001-5220-064-013,120-5220-064-013 CAPITAL PURCHASES -COMMUNITY OUTREACH -BUDGET LINE 177 1 NN SDA BC SDA North Collier Video Camera for Community Outreach $ 2,121 $ 380 $ 2,500 TOTAL■ :0 $ 2,500 Prlor Year Amended Bud 15-16 $ --,1S -1$ Estimated 9-30-16 Is - $ -Is 001-5220-064-010 CAPITAL PURCHASES -COMPUTERS -BUDGET LINE 166 Prior Year Amended Budget 16-17 $ 146132 $ 23,8681$ 170,000 Estimated 9-30-17 93,4451 $ 16,2631$ 108,708 BJB/bb 7-31-1718-15-1719-19-1719-25-17 79 NN SDA BC SDA North Collier Servers (4) $ 33,928 $ 6,072 $ 40,000 Routers $ 8,482 $ 1,518 $ 10,000 Mobile Data Units (3) $ 12,723 $ 2,277 $ 15,000 Replacment Main Backup Appliance $ - $ - TOTAL ■ r00 Prior Year Amended Budget 16-17 $ 146132 $ 23,8681$ 170,000 Estimated 9-30-17 93,4451 $ 16,2631$ 108,708 BJB/bb 7-31-1718-15-1719-19-1719-25-17 79 001-5220-064-006 NN SDA BC SDA North Collier Arborist Spikes and Climbing Belt $ - $ - Speed Crib Set $ - $ - Conversion of PU-10 to Trench/Colla se Ri $ $ TOTALBUDGET Prior Year Amended Budget 16-17 S 9,713 1 $ 1,587 $ 11.300 Estimated 9-30-17 S 9,7131 S 1,587 $ 11,300 001-5220-064-016 CAPITAL PURCHASES - BOAT TEAM - BUDGET LINE 168 D• BC SDA North Collier Autopilot for Boat 41 $ - $ - 4 Wheel ATV - Beach Rescue $ - $ TOTALi i - • Prior Year Amended Bud 16-17 $ 35.6731$ 5,827 $ 41,500 Estimated 9.30-17 1 $ 2,0501 $ 1,762 $ 3,812 Variance - 16-17 vs 17-18 - (100%) 001-5220-064-008, 400 - 403 TOTAL 2017-2018 BUDGET Prior Year Amended Budget 16-17 1 $ - $ - S Estimated 9-30-17 1 S $ _1$ - 001-5220-064-004 NN SM BC SDA Change Orders - New Aerial $ 8,482 $ 1.518 $ 10,000 Vehicle - Logistics (New Position) $ - $ - Re lacment Vehicle -Fire Prevention $ - $ - :TOTAL i •10,000 Prior Year Amended Bud 16-17 1 $ 34.8781 $ 5,697 1 S 40,575 Estimated 9-30-17 1 $ 15,9421 $ 2,768 $ 18,710 BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 80 001-5220-064-019,110 - 113 SDA BC SDA North Cooter Portable Lift Equipment (Apparatus) $ - $ - Fiber Optic Camera $ - $ - r Prior Year Amended Budget 16-17 $ 62,3861$ 10,1901$T,576 Estimated 9-30-17 62,386 $ 10,190 $72 S76 eMYS 001-5220-064-023 NN SDA BC SDA North Collier Variance - 16-17 vs. 17-18 154 001-5220-064-015 CAPITAL PURCHASES-HAZMAT TEAM -BUDGET LINE 173 TOTAL 2017-2018 BUDGET Variance - 15-16 vs 16-17 -(1009/o) 001-5220-064-014 CAPITAL PURCHASES - FIRE APPARATUS - BUDGET LINE 174 NN SDA BC SDA North CoIlIw TOTAL 2017-2018 BUDGET $ - $ - BJB/bb 7-31-17/8-15-17/9-19-17/9-25-17 81 001-5220-064-007 NN SDA SC SDA North COMW TOTAL 17-18 BUDGET $ - $ - $ - Prior Year Amended B 16-17 1 $ 2,650 $ 4331$ 3,0831 Estimated 9430-17 $ - $ 001-5220-064-011 NN SDA BC SDA North Collier TOTAL 2017-20113 BUDGET Prior Year Amended SLK#get 16-17 $ - $ .1$ Estimated 9-30-17 $ - $ -is CAPITAL PURCHASES - LAND - BUDGET LINE 178 NN SDA BC SDA North Collier TOTAL 2017-2018 BUDGET Variance - 16-97 vs. 17-18 - 0•/ BJB/bb 7-31-17/8-1517/9-19-17/9-25-17 82 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT BASIC FINANCIAL STATEMENTS TOGETHER WITH ADDITIONAL REPORTS YEAR ENDED SEPTEMBER 30, 2016 b. TABLE OF CONTENTS Page(s) �- INDEPENDENT AUDITOR'S REPORT................................................................ 1-4 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)................................... i -xi BASIC FINANCIAL STATEMENTS GOVERNMENT -WIDE FINANCIAL STATEMENTS: Statement of Net Position................................................................................. 5 Statement of Activities.................................................................................... 6 FUND FINANCIAL STATEMENTS: Governmental Funds: Balance Sheet...... Reconciliation of the Balance Sheet of Governmental Funds _ to the Statement of Net Position...................................................................... 8 Statement of Revenues, Expenditures and Changes inFund Balance......................................................................................... 9 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities ........................ 10 Fiduciary Fund - Firefighters' Pension Plan: �— Statement of Fiduciary Net Position................................................................... 11 Statement of Changes in Fiduciary Net Position ..................................................... 12 NOTES TO THE FINANCIAL STATEMENTS......................................................... 13-75 OTHER INFORMATION COMBINING FINANCIAL STATEMENTS BY SERVICE DELIVERY AREA Governmental Funds Combining Balance Sheet - General Fund - by Service Delivery Area ........................... 76 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - General Fund - by Service Delivery Area............................................................ 77 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A NORTH NAPLES SERVICE DELIVERY AREA BUDGET TO ACTUAL COMPARISON - MAJOR FUNDS (General and Special Revenue Funds) Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund - Summary Statement................................................................... 7 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund - Detailed Statement..................................................................... 79-81 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Impact Fee Fund - Summary Statement................................................................ 82 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Impact Fee Fund - Detailed Statement 83 TABLE OF CONTENTS (CONTINUED) Pae s BUDGET TO ACTUAL COMPARISON - OTHER NON-MAJOR GOVERNMENTAL FUND Special Revenue Fund: Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - `" Inspection Fee Fund - Summary Statement ........................................................ 84 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Inspection Fee Fund - Detailed Statement.......................................................... 85-86 BIG CORKSCREW ISLAND SERVICE DELIVERY AREA BUDGET TO ACTUAL COMPARISON - MAJOR FUNDS (General and Special Revenue Funds) Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund - Summary Statement................................................................... 87 r.., Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund - Detailed Statement..................................................................... 88-90 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Impact Fee Fund - Summary Statement................................................................ 91 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Impact Fee Fund - Detailed Statement 92 OTHER REQUIRED SUPPLEMENTARY INFORMATION Schedule of District's Proportionate Share of the Net Pension Liability - Florida Retirement System Pension Plan (FRS)........................................................................... 93 Schedule of District Contributions - Florida Retirement System Pension Plan (FRS)............ 93 Schedule of District's Proportionate Share of the Net Pension Liability - Health Insurance Subsidy Pension Plan (HIS)........................................................................... 94 Schedule of District Contributions - Health Insurance Subsidy Pension Plan (HIS) ............. 94 Notes to the Required Supplementary Information.................................................... 95-96 ADDITIONAL REPORTS Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Basic Financial Statements _ Performed in Accordance with Government Auditing Standards ..................................... 97-98 Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes......................................................................... 99 Independent Auditor's Report to Management............................................................ 100-102 Management's Response to Independent Auditor's Report to Management ........................... Exhibit bm ` Affiliations TUSCANFlorida Institute of Certified Public Accountants American Institute of Certified Public Accountants Company, PA Private Companies Practice Section Tax Division Certified Public Accountants & Consultants L INDEPENDENT AUDITOR'S REPORT an— _ Board of Commissioners North Collier Fire Control and Rescue District 1885 Veterans Park Drive Naples, Florida 34109-0492 Report on the Financial Statements imm We have audited the accompanying financial statements of the governmental activities and each major and non -major fund of North Collier Fire Control and Rescue District (the "District") as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the District's L, basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements ` Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of ` financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility L Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial statements of North Collier Fire Control and Rescue District Firefighters' Pension Fund ("Pension Fund") as of and for the year ended September 30, 2016, which represent 100% of the assets, liabilities and net position as well as 100% of the revenue and expenses of the District's Fiduciary Fund. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for North Collier Fire Control and Rescue District Firefighters' Pension Trust Fund, is based on the report of the other auditors. We also did not audit the financial statements of the Florida Retirement System Pension Plan (FRS) or Health Insurance Subsidy Pension Plan (HIS) as of and for the year ended June 30, 2016. The District is required to record its proportionate share of the FRS and HIS liability in the District's government -wide financial statements as of September 30, 2016 and for the year then ended. The Florida Retirement System financial statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for the District's government -wide financial statements, are based on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the L, standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those ` risk assessments, the auditor considers internal control relevant to the District's preparation and fair INTEGRITY ......... SERVICE ......... EXPERIENCE® 12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097 Board of Commissioners North Collier Fire Control and Rescue District Page 2 r.. presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating overall presentation of the financial statements. r.. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Summary of Opinions Opinion Unit Tyne of Opinion Governmental Activities Unmodified General Fund Unmodified Impact Fee Funds Unmodified Inspection Fee Fund Unmodified Firefighters' Pension Trust Fund Unmodified Opinions Unmodified Opinions In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major and non -major fund of North Collier Fire Control and Rescue District as of September 30, 2016, and the respective changes in financial position, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information h, Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages i -xi, Schedule of the District's Proportionate Share of the Net Pension Liability - Florida Retirement System Pension Plan (FRS), Schedule of District Contributions - Florida Retirement System Pension Plan (FRS), Schedule of the District's Proportionate Share of the Net Pension Liability - Health Insurance Subsidy Pension Plan (HIS), Schedule of District Contributions - Health Insurance Subsidy Pension Plan (HIS) and Notes to the Required Supplementary Information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board which considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information - management's discussion and analysis (MD&A), Schedule of the District's Proportionate Share of the Net Pension Liability - Florida Retirement System Pension Plan (FRS), Schedule of District Contributions - Florida Retirement System Pension Plan (FRS), Schedule of the District's Proportionate Share of the Net Pension Liability - Health Insurance Subsidy Pension Plan (HIS), Schedule of District Contributions - Health Insurance Subsidy Pension Plan (HIS), and Notes to the Required Supplementary Information, as listed in the table of contents, in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the required supplementary information - management's discussion and analysis L �. Board of Commissioners North Collier Fire Control and Rescue District Page 3 (MD&A), Schedule of the District's Proportionate Share of the Net Pension Liability - Florida Retirement System Pension Plan (FRS), Schedule of District Contributions - Florida Retirement System Pension Plan (FRS), Schedule of the District's Proportionate Share of the Net Pension Liability - Health Insurance Subsidy Pension Plan (HIS), Schedule of District Contributions - Health Insurance Subsidy Pension Plan (HIS), and Notes to the Required Supplementary Information, as listed in the table of contents, because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Required Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise North Collier Fire Control and Rescue District's basic financial statements. The required supplementary information other than MD&A - budgetary comparison information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The required supplementary information other than MD&A budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the required L supplementary information other than MD&A - budgetary comparison information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District's basic financial statements. The combining financial statements and schedules, the introductory section and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. L The combining financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the _ basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a v whole. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the District's basic financial statements. The Exhibit - Management's Response to Independent Auditor's Report to Management is not a required part of the basic financial statements but is required by Government Auditing Standards. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. b.. .... Board of Commissioners North Collier Fire Control and Rescue District Page 4 Other Reporting Required by Section 218.415, Florida Statutes In accordance with Section 218.415, Florida Statutes, we have also issued a report dated February 23, 2017, on our consideration of North Collier Fire Control and Rescue District's compliance with provisions of Section 218.415, Florida Statutes. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing, and to provide an opinion on compliance with the aforementioned Statute. That report is an integral part of an audit performed in accordance with Sections 218.39 and 218.415, Florida Statutes in considering North Collier Fire Control and Rescue District's compliance with Section 218.415, Florida Statutes. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 23, 2017, on L our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contract and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditive Standards in considering North Collier Fire Control and Rescue District's internal control over financial L reporting and compliance. -� /Zulo-w T Zomp / �t 4. TUSCAN & COMPANY, P.A. Fort Myers, Florida February 23, 2017 r.. L L MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) `.0 Management's Discussion and Analysis of Financial Statements FYE September 30, 2016 This Discussion and Analysis of the North Collier Fire Control & Rescue District's ("The District") basic financial statements is provided to assist the reader in understanding the District's financial activities and significant changes in ending financial position for the fiscal year ended September 30, 2016. These statements implement the requirements of GASB Statements #34 and #68 and incorporate those annual reporting requirements, as well as the financial statement format and presentation. Contained within are the basic financial statements, consisting of the government -wide financial statements, governmental fund financial statements and notes to the financial statements. This Discussion and Analysis will also provide an analytical overview of these statements, including comparisons of the District's financial position at September 30, 2016 versus September 30, 2015. On January 1, 2015, the North Collier Fire Control & Rescue District was officially bmm formed by the merger of the North Naples Fire Control & Rescue District and the Big Corkscrew Island Fire Control & Rescue District. It should be noted that the comparative financial information at September 30, 2015 reflects financial activity for a nine month period. District Highlights 1. At the conclusion of fiscal year 2016, the District's assets exceeded its liabilities, resulting in net assets of $27,105,254 as compared to net assets at September 30, 2015 of $31,806,678. 2. The District had ($4,523,592) deficit of unrestricted net assets at September 30, 2016 that can be used to meet the District's ongoing obligations as compared to $1,423,812 of unrestricted net assets at September 30, 2015. The amount of unrestricted net assets decreased by $5,947,404. 3. Total revenues on the government -wide funds basis increased $26,846,550 or 336 percent, in comparison to the prior year. However, the 9-30-15 revenue reflects only revenue received during a partial fiscal year (January through September), when the majority of Ad Valorem revenue is received during the first quarter of the fiscal year (October through December). bw 4. Total expenses on the government -wide basis decreased increased by $15,935,184 or 67 percent, in comparison to the prior year. Again, this is partially because the 9-30- 15 expenses reflect expenses for only 9 months of the fiscal year. Government -wide Financial Statements L. Government -wide financial statements (Statement of Net Position and Statement of Activities found on pages 5 and 6) are intended to allow a reader to assess a government's operational accountability. Operational accountability is defined as the extent to which the government has met its operating objectives efficiently and effectively, using all resources available for that purpose, and whether it can continue to meet its objectives for the foreseeable future. Government -wide financial statements concentrate on the District as a whole and do not emphasize fund types. BJB/bb 4-7-17 The Statement of Net Position (page 5) presents information on all of the District's assets and liabilities, with the difference between the two reported as net assets. The District's capital assets are included in this statement and reported net of their accumulated depreciation. The Statement of Activities (page 6) presents revenue and expense information showing how the District's net assets changed during the fiscal year. Both statements are measured and reported using the economic resource measurement focus (revenues and expenses) and the accrual basis of accounting (revenue recognized when earned and expense recognized when incurred). Governmental Fund Financial Statements The accounts of the District are organized on the basis of governmental funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity or retained earnings, revenues and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. Governmental fund financial statements (found on pages 7 and 9) are prepared on the modified accrual basis using the current financial resources measurement focus. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available as net current assets. Notes to the Financial Statements The notes to the financial statements explain in detail some of the data contained in the preceding statements and begin on page 13. These notes are essential to a full understanding of the data provided in the government -wide and fund financial statements. Government -Wide Financial Analysis The government -wide financial statements are designed so that the user can determine if ` the District's financial condition is better or worse than the prior year. Once again, it must be noted that due to the creation by merger of the District on January 1, 2015, the comparative information for 9-30-15 represents a nine month period, rather than a full fiscal year. L BJB/bb 4-7-17 ii The following is a Condensed Summary Statement of Net Position for the District (Primary Government) at September 30, 2016 and 2015: Summary Statement of Net Position ` September 30, 2016 and September 30, 2015 Assets: 2016 2015 L Current and Other Assets $ 16,150,216 $ 17,215,466 Capital Assets 32,071,231 30,913,073 Total Assets 48,221,447 48,128,539 Deferred Outflows - Pensions 10,196,042 6,994,515 Liabilities: Current Liabilities 2,949,560 2,509 067 Non -Current Liabilities 21,503,983 11,730,921 Total Liabilities 24,453,543 14,239,988 Net Position: Deferred Inflows - Pensions 6,858,692 9,076,388 Net Investment in Capital Assets 31,623,903 30,373,570 Restricted 4,943 9,296 Unrestricted (deficit) (4,523,592) 1,423,812 Total Net Position 27,105,254 31.806,678 Current and other assets represent 33 percent of total assets at September 30, 2016, as �•• compared to 36 percent at September 30, 2015. Current assets at September 30, 2016 are comprised of unrestricted cash balances of $12,313,317, restricted cash of $1,332,708, unrestricted investments of $1,300,000, due from other governments of $654,171, other bum receivables of $231,184 and other assets of $318,836. The balances of unrestricted cash represent amounts that are available for spending at the discretion of the Board of Fire L, Commissioners of the District. Restricted cash balances are comprised of the impact fee funds restricted for the purchase of capital assets, and unspent inspections fee revenue restricted to support the inspection of new construction. The net investment in capital assets represent 117 percent of net assets at September 30, 2016, as compared to 95 percent at September 30, 2015. These assets are comprised of land, buildings, improvements, equipment, furniture, and vehicles, net of accumulated depreciation, and the outstanding related debt used to purchase the assets. The assigned L fund balance of ($12,963,754) represents resources available for spending at September 30, 2016. However, the District's Board has specifically assigned those resources to particular uses. BJB/bb 4-7-17 111 Summary of Revenues, Expenses and Changes in Net Assets For the Years Ended September 30, 2016 and September 30, 2015 Revenues: 2016 2015 General Revenues Ad Valorem Taxes $28,115,468 $4,013,065 Charges for Services 2,249,466 1,826,219 Program Revenues Grants 671,753 32,803 Miscellaneous Impact Fees 2,493,945 1,745,626 Investment Earnings 54,184 68,837 Gain (Loss) on Disposition of Capital Assets (71,583) (13,605) Other 1,319,962 313,700 Total Revenues 34,833,195 7,986,645 Expenses: Public Safety—Fire/ Rescue Service 39,534,619 23,599,435 Increase (Decrease) in Net Position (4,701,424) (15,612,790) Net Position -Beginning of Year 31,806,678 47,419,468 Net Position -End of Year SU.IL5.2 4 $31,806,678 BJB/bb 4-7-17 1v The assessed value of the property within the North Naples Service Delivery Area increased just under 8 percent for the 2015-2016 fiscal year as compared to the prior year's assessed value, resulting in an increase in Ad Valorem tax revenues of $1,769,055. The property values in the North Naples Service Delivery Area decreased by 25 percent during the fiscal years 2007-2012, resulting in a decrease in Ad Valorem revenue. While property values have increased between 2012 and 2016, property value in the North Naples Service Delivery Area is still 9 percent lower FYE 9-30-16 than it was in FYE 9- 30-07. The Board adopted a millage rate of 0.95 mils in the North Naples Service Delivery Area taxing unit, or $0.95 for every $1,000 of taxable property value. This millage rate was _ 6.17 percent more than the rolled back rate (the taxing rate necessary to generate the same Ad Valorem revenue as was generated during the 2014-2015 fiscal year) of .8919. The assessed value of the property within the Big Corkscrew Island Service Delivery Area increased just under 15 percent for the 2015-2016 fiscal year as compared to the prior year's assessed value, resulting in an increase in Ad Valorem tax revenues of $415,952. The property values in the Big Corkscrew Island Service Delivery Area decreased by 66 percent during the fiscal years 2007-2012, resulting in a decrease in Ad Valorem revenue. While property values have increased between 2012 and 2016, property value in the Big Corkscrew Island Service Delivery Area is still 55 percent lower FYE 9-30-16 than it was in FYE 9-30-07. The Board adopted a millage rate of 3.45 mils in the Big Corkscrew Island Service _ Delivery Area taxing unit, or $3.45 for every $1,000 of taxable property value. This millage rate was 6.20 percent more than the rolled back rate (the taxing rate necessary to generate the same Ad Valorem revenue as was generated during the 2014-2015 fiscal year) of 3.2485. Prior to the 2007-2008 fiscal year, the increase in Ad Valorem revenue resulting from the increase in property value was sufficient to provide adequate funds to support operational, capital and reserve financial requirements in the District without increasing the millage rate. While property values have been on the increase over the last few years, the increases have not been sufficient to prevent the use of reserves to fund capital purchases. The following chart identifies the change in appraised property values in the District by service delivery area and the millage rate maintained by the District. BJB/bb 4-7-17 0 a - i L I $28,533,716,727 North Naples Service Delivery Area Taxable Property Values 2005 - 2016 $28,890,656,2 t» YAI -3,143 BJB/bb 4-7-17 V1 10 Fund Balance — Governmental Fund Financial Statements Staff has worked hard to meet the Board of Fire Commissioners' directive to utilize the fund balance and cash reserves of the General Fund to fund only capital purchases and improvements, and to maintain the District's financial position. The total fund balance of the General Fund was $13,282,590 at September 30, 2016, including the nonspendabe amount of $318,836 restricted for prepaid expenses, and $12,963,754 of assigned reserves. This fund balance reflects a decrease of $1,504,328 (used to fund capital expenses) as compared to the fund balance at the year ended September 30, 2015. While assigned reserves have been established and maintained in accordance with anticipated future needs of the District, it must be noted that the need may arise for the Board to unassign a portion of these reserves to fund the District's operations should property values fall or other unforeseen circumstances arise. The following General Fund Assigned Reserves were approved for the fiscal year ended September 30, 2016: L NonSpendable Fund Balance Amount General Fund Prepaid Expenses 318,836 Assigned Fund Balance Amount Operating Reserve — First Quarter $ 7,250,000 ` Minimum Operating Reserve per Policy 3,100,000 Health insurance Claim Reserve 200,000 ALS 130,000 Protective Gear 115,000 Vehicle Replacement 350,000 Fire Equipment 300,000 Fire Apparatus 444,866 Fire Prevention Bureau 883,839 Emergency Cash Resercve 94,905 Station Improvements & Equip. 74,244 Station #46 Improvements 20,900 —• Total Assigned Reserves $12,963,754 Total General Fund Reserves $13,282,590 bom The assigned reserves have been established by the Board of Fire Commissioners to meet the future needs of the District, including operating expenses for the first quarter of the fiscal year prior to receipt of Ad Valorem revenue, and the replacement of capital assets. Additionally, increases in health insurance, and other personnel and operating expenses require that funds be set aside, or assigned, to prepare for the funding of future expenditures. �— Impact Fees With the creation of the North Collier Fire Control and Rescue District January 2015, an impact fee study was performed to establish impact fee rates for the new District. ` However, that study was not completed and new rates were not adopted until October 1, 2016. Therefore, each service delivery area retained their original impact fee rates and structure. Combined impact fee receipts were $2,674,934, an increase over the prior year BJB/bb 4-7-17 Vii of $563,310 or 27 percent. Total combined Impact Fee Fund expenses for the 15-16 fiscal year were $2,494,570, consisting of protective gear for new firefighter positions, the purchase of land for a new station, final repayment to the General Fund for the construction of Station 448, and debt service payment for land purchased in the Big Corkscrew service delivery area. Inspection Fees _ Inspection fee revenue for the year ended September 30, 2016 was $1,744,136 representing a decrease of $15,527 or less than 1 percent as compared to inspection fee revenue in the prior fiscal year (2015). In June of 2014, the District terminated its Interlocal Agreement with the Fire Code Official's office to provide fire plan review services and assumed the responsibility for those plan reviews. As a result $872,677 of the fund's revenue was attributable to plan review fees. The Inspection Fee Fund has had sufficient revenue in the past two fiscal years to fully support the functions associated with new construction inspections and plan reviews. Based on receipts for the first half of the 2016-2017 fiscal year for both inspection fees and plan review fees, it is anticipated this fund will continue to be self-supporting, at lease for the next few fiscal years as growth and expansion continue within the District. Staff will, however, continue �- to monitor the fund to determine if the General Fund will be required to provide financial assistance to support the Inspection Fee Fund operating costs. Budgetary Highlights Budget versus actual comparisons are reported in the required supplementary information other than management's discussion and analysis on pages 78 through 92 and are L reflected by taxing subunit (service delivery area). The amendments to General Fund revenue were necessary to reflect an increase in Ad Valorem tax revenue received resulting in collection above the 95 percent subject to budget requirements, to reflect a reduction in grant revenue resulting from the delay of L initiation of the Safer Grant, to provide for a one time distribution of funds resulting from the dissolution of the Fire Code Official's office and to reflect the repayment of the loan to the Impact Fee Fund to complete construction of Station #48. By these amendments, General Fund revenue was increased by $2,760,676. The amendments to the General Fund expenditures were a result of several factors. Budgeted personnel expenses were increased by $2,337,814 to reflect the additional firefighters funded by the Safer Grant, a newly negotiated Collective Bargaining Agreement, and harmonization costs associated with the merger and allocated solely to the Big Corkscrew service delivery area. Amendments were also made to operational expenses (an increase of $128,2242 mostly attributable to additional vehicle and building L maintenance costs, and capital expenses (an increase of $113,298) to provide for the purchase of non -transport ambulance (squad) units. Capital Assets Non -depreciable capital assets include land and construction in progress. Depreciable assets include buildings, improvements other than buildings, equipment, furniture and vehicles. BJB/bb 4-7-17 viii The following is a schedule of the District's capital assets as of September 30, 2016 and 2015. Capital Assets September 30 Capital Assets 2016 2015 L Land $12,823,117 $11,947,895 Construction in Progress 1,182,089 1,130,645 Total Capital Assets not Depreciated 14,005,206 13,078,540 Assets Held Under Capital Lease Buildings Vehicles Office Equipment Now Equipment & Machinery Total Capital Assets Being Depreciated Accumulated Depreciation Assets Held Under Capital Lease Buildings Vehicles Office Equipment Now Equipment & Machinery Total Accumulated Depreciation L .w Total Capital Assets being Depreciated, Net Capital Assets — Net of Depreciation Less: Capital Lease/Note Payables Net Assets Invested in Capital Assets Net of Related Debt 160,240 20,170,551 10,699,510 1,189,683 4,265,229 36,485,213 (91,249) ( 6,840,205) ( 7,775,210) (669,984) (3,042,540) (18,419,188) 18,066,025 32,071,231 (447,328) 31,623.903 160,240 20,104,344 10,000,490 1,675,316 3.637.256 35,577,646 (64,542) ( 6,392,330) ( 7,567,741) ( 635,106) 3,083,394) (17,743,113) 17,834,533 30,913,073 (539,503) 30.373.570 Significant capital asset purchases made during the fiscal year ended September 30, 2016 include: 1. Replacement vehicles (5), and 3 new squad (non -transport ambulance) units totaling $947,123; 2. Replacement radios totaling $70,758.97; 3. Replacement fire equipment (hydraulic tools and thermal imaging cameras) totaling $60,981; 4. Replacement medical equipment, including HeartStart Monitors and chest compressor systems, totaling $97,713; 5. Forty-one sets of replacement Bunker Gear totaling $86,633; 6. Replacement bay doors, alarm system and new signs totaling $66,013. BJB/bb 4-7-17 1X For additional information on the District's capital assets, see Note E on pages 36 and 37. Debt Administration As of September 30, 2016, the District had long term obligations of $21,590,860, as compared to $11,820,736 at September 30, 2015, an increase of $9,770,124 or 83 percent. The significant increase is largely due to the increase in FRS liability totaling $5,766,659 and Chapter 175 liability totaling $3,186,552. That debt consists of: 1. Compensated absences (accrued vacation liability) in the amount of $2,079,049, as compared to $1,965,499 at September 30, 2015. The increase in this liability is due to an increase in the number of District employees. 2. OPEB obligation of $3,012,601 as compared to $2,217,063 at September 30, 2015, representing post employment health insurance obligations pursuant to GASB No. 45. The increase in this obligation is due to the increase in the number of employees and the unification of the Collective Bargaining Agreement. 3. Capital lease for medical equipment in the amount of $44,828. This lease was entered into in 2013 as a lease to purchase agreement for 12 Lucas Chest Compressors, and is a principal only lease, with no associated interest cost. 4. Note payable for the purchase of land in the amount of $402,500. 5. Pension liability (FRS) in the amount of $10,348,466 (see Note F). 6. Pension liability (HIS) in the amount of $2,509,309 (see Note F). 7. Pension liability (Ch. 175) in the amount of $3,194,107 (see Note F). Economic Facts and Next Year's Budget Millage Rates The following factors were taken into consideration when the budget for the fiscal year ,w ending September 30, 2017 was prepared: 1. Appraised taxable property values increased by $2,385,783,252, or 9 percent for tax year 2016 (FY 2017) in the North Naples service delivery area as compared to an increase of 8 percent in 2015. In the Big Corkscrew service delivery area, _ taxable property values increased by $139,223,613 or 12 percent for tax year 2016 (FY 2017) as compared to an increase of 14 percent in 2015. 2. The District retained a decreased millage rate of 0.95 mils in the North Naples service delivery area and 3.45 mils in the Big Corkscrew service delivery area for the fiscal year ending September 30, 2017. The Board has expressed the desire to continue to move towards one unified taxing rate District wide, although it is acknowledged this may take a significant period of time, depending upon the rate of growth and resulting property values in the District. 3. The use of General Fund reserves has been limited to the purchase of capital items, debt service for replacement apparatus and limited funding ($50,797) of the fire prevention bureau services from the reserve established by the distribution of �- funds from the Fire Code Official's Office. Capital purchases include replacement air conditioning units, bay doors and the fuel management system totaling $515,750, replacement fire equipment in the amount of $210,000, vehicle replacements totaling $244,500, replacement protective gear in the amount of $161,000, medical equipment in the amount of $85,000 and computer equipment totaling $170,000. BJB/bb 4-7-17 x L ft— ft— bow L Request for Information This financial report is designed to provide the reader an overview of the District. Questions regarding any information provided in this report should be directed to: Becky Bronsdon, Chief Financial Officer, North Collier Fire Control & Rescue District, 1885 Veteran's Park Drive, Naples, FL 34109, 239-597-3222, e-mail: bbronsdon@northcollierfire.com. BJB/bb 4-7-17 X1 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 5 of 102 STATEMENT OF NET POSITION September 30, 2016 Governmental Activities ASSETS Current assets: Cash and cash equivalents $ 12,313,317 _ Restricted cash and cash equivalents 1,332,708 Investments 1,300,000 Due from other governments 654,171 Other receivables 231,184 Other assets 318,836 Total current assets 16,150,216 Noncurrent assets: Capital assets: Land 12,823,117 Construction in progress 1,182,089 Depreciable buildings, equipment, and vehicles (net of $18,419,188 accumulated depreciation) 18,066,025 Total noncurrent assets 32,071,231 TOTAL ASSETS 48,221,447 DEFERRED OUTFLOWS OF RESOURCES - PENSIONS 10,196,042 LIABILITIES Current liabilities: Accounts payable and accrued expenses 1,612,510 Retainage payable - Contract deposits 7,500 Unearned revenue 1,242,673 Current portion of long-term obligations 86,877 Total current liabilities 2,949,560 Noncurrent liabilities: Noncurrent portion of long-term obligations 21,503,983 TOTAL LIABILITIES 24,453,543 DEFERRED INFLOWS OF RESOURCES - PENSIONS 6,858,692 NET POSITION .� Net investment in capital assets 31,623,903 Restricted 4,943 Unrestricted (deficit) (4,523,592) TOTAL NET POSITION $ 27,105,254 L The accompanying notes are an integral part of this statement. hom NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT STATEMENT OF ACTIVITIES Year Ended September 30, 2016 EXPENSES Governmental Activities Public Safety - Fire Protection Personnel services Operating expenses Depreciation Interest and fiscal charges TOTAL EXPENSES - GOVERNMENTAL ACTIVITIES PROGRAM REVENUES Charges for services Operating grants and contributions NET PROGRAM EXPENSES GENERAL REVENUES Ad Valorem taxes ` Impact fees Interest Loss on disposition of capital assets ` Other TOTAL GENERAL REVENUES DECREASE IN NET POSITION NET POSITION - Beginning of the year NET POSITION - End of the year The accompanying notes are an integral part of this statement. Page 6 of 102 Govemmental Activities $ 33,207,152 4,861,286 1,448,931 17,250 39,534,619 2,249,466 671,753 36,613,400 28,115,468 2,493,945 54,184 (71,583) 1,319,962 31,911,976 (4,701,424) 31,806,678 $ 27,105,254 ft- _ NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 7 of 102 BALANCE SHEET - GOVERNMENTAL FUNDS September 30, 2016 Total General Impact Fee Impact Fee Inspection Fee Governmental Fund Fund - NN Fund - BCI Fund - NN Funds ASSETS Cash and cash equivalents $ 12,313,317 $ - $ - $ - $ 12,313,317 Restricted cash and cash equivalents - 332,909 791,824 207,975 1,332,708 Investments 1,300,000 - - - 1,300,000 Due from other governments 286,266 108,538 55,402 203,965 654,171 Due from other funds 408,392 - - 1,395 409,787 Other receivables 231,184 - - 231,184 Prepaid expenses 318,836 - - - 318,836 TOTAL ASSETS $ 14,857,995 $ 441,447 $ 847,226 $ 413,335 $ 16,560,003 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable and accrued expenses $ 1,566,510 $ 1,767 $ 44,233 $ - $ 1,612,510 Retainage payable - - - _ _ Due to other funds 1,395 - 408,392 409,787 Contract deposits 7,500 - - - 7,500 Unearned revenue - 439,680 802,993 - 1,242,673 TOTAL LIABILITIES 1,575,405 441,447 847,226 408,392 3,272,470 FUND BALANCE _ Nonspendable 318,836 - - - 318,836 Restricted - - 4,943 4,943 Assigned 12,963,754 - - - 12,963,754 Unassigned - - - - TOTAL FUND BALANCE 13,282,590 - 4,943 13,287,533 TOTAL LIABILITIES AND FUND BALANCE $ 14,857,995 $ 441,447 $ 847,226 $ 413,335 $ 16,560,003 r.. The accompanying notes are an integral part of this statement, ,.. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 8 of 102 RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION September 30, 2016 �•- Amount Total fund balance of governmental funds $ 13,287,533 V Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. r.. Capital assets not being depreciated: Land 12,823,117 .� Construction in progress 1,182,089 14,005,206 Governmental capital assets being depreciated: Building, equipment and vehicles 36,485,213 Less accumulated depreciation (18,419,188) r. 18,066,025 Deferred outflows and deferred inflows related to pensions are applied to future periods and, therefore, are not reported in the governmental funds. Deferred outflows related to pensions 10,196,042 Deferred inflows related to pensions (6,858,692) 3,337,350 Long-term obligations are not due and payable in the current period and therefore are not reported in the governmental funds. Net OPEB obligation (3,012,601) Net pension liability - FRS (10,348,466) Net pension liability - HIS (2,509,309) Net pension liability - FPT (3,194,107) Capital lease (44,828) Note payable (402,500) Compensated absences (2,079,049) �.., (21,590,860) Elimination of interfund amounts: ` Due to other funds (409,787) Due from other funds 409,787 Total net position of governmental activities $ 27,105,254 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 9 of 102 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS _ Year Ended September 30, 2016 Total ... General Impact Fee Impact Fee Inspection Fee Governmental Fund Fund - NN Fund - BCI Fund - NN Funds REVENUES _ Ad Valorem taxes $ 28,115,468 $ - $ - $ - $ 28,115,468 Intergovernmental revenue: State firefighter supplement 57,682 - - - 57,682 Federal grants 614,071 - - - 614,071 Charges for services: Inspection fees and other 505,856 - - 870,933 1,376,789 Plan review fees - - - 872,677 872,677 Impact fees - 1,483,922 1,010,023 - 2,493,945 Miscellaneous: Interest 53,033 607 18 526 54,184 Other 1,319,962 - - - 1,319,962 TOTAL REVENUES 30,666,072 1,484,529 1,010,041 1,744,136 34,904,778 EXPENDITURES Current Public safety Personnel services 27,168,111 - - 1,595,965 28,764,076 Operating expenditures 4,740,295 28,848 11,231 80,912 4,861,286 Capital outlay 1,602,330 80,670 924,060 71,612 2,678,672 Debt service: ` Principal reduction 34,675 - 57,500 - 92,175 Interest and fiscal charges - - 17,250 - 17,250 TOTAL EXPENDITURES 33,545,411 109,518 1,010,041 1,748,489 36,413,459 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (2,879,339) 1,375,011 - (4,353) (1,508,681) ` OTHER FINANCING SOURCES AND USES Proceeds from disposition of capital assets - - - Transfers in 1,375,011 - - 1,375,011 61M Transfers out - (1,375,011) - - (1,375,011) TOTAL OTHER FINANCING SOURCES AND USES 1,375,011 (1,375,011) - - - EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (1,504,328) - - (4,353) (1,508,681) FUND BALANCE - Beginning of the year FUND BALANCE - End of the year 14,786,918 $ 13,282,590 $ The accompanying notes are an integral part of this statement. 9,296 14,796,214 $ - $ 4,943 $ 13,287,533 kum •— NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, _ EXPENDITURES, AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended September 30, 2016 Net change (revenues and other financing sources over (under) expenditures and other financing uses) in fund balance - total governmental funds The decrease (change) in net position reported for governmental activities in the Statement of Activities is different because: Governmental funds report capital outlays as expenditures. In the Statement of Activities, however, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The loss on disposition of capital assets decreases the net position. Plus: expenditures for capital assets Less: proceeds on disposition of capital assets Less: loss on disposition of capital assets Less: current year depreciation The issuance of debt is reported as a financing source in governmental funds and thus contributes to the change in fund balance. In the Statement of Net Position, however, issuing debt increases long-term liabilities and does not affect the Statement of Activities. Similarly, repayment of principal is an expenditure in the governmental funds but reduces the liability in the Statement of Net Position. Borrowings (proceeds from issuance): Less: capital lease Repayments (principal retirement): how Plus: capital lease Plus: note payable bow Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. Less: transfers in Plus: transfers out L (Increase) decrease in net pension liability - pension (FRS) (Increase) decrease in net pension liability - HIS (Increase) decrease in net pension liability - FPT b w Increase (decrease) in deferred outflows (Increase) decrease in deferred inflows (Increase) decrease in Net OPEB obligation ... (Increase) decrease in compensated absences Decrease in net position of governmental activities The accompanying notes are an integral part of this statement. 2,678,672 (71,583) (1,448,931) 34,675 57,500 (1,375,011) 1,375,011 (5,413,173) (353,486) (3,186,552) 3,201,527 2,217,696 (795,538) (113,550) Page 10 of 102 Amount $ (1,508,681) 1,158,158 92,175 (4,443,076) $ (4,701,424) r. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT STATEMENT OF FIDUCIARY NET POSITION - FIDUCIARY FUND September 30, 2016 The accompanying notes are an integral part of this statement. Page 11 of 102 Firefighters' Pension Fund $ 4,344,726 2,436,937 30,688,898 5,732,235 8,054,304 5,606,820 56,863,920 1,411,547 221,724 16,584 18,283 124,930 58,656,988 72,055 55,415 127.470 438,296 8,091,222 $ 58,529,518 ASSETS Investments, at fair value: Cash and cash equivalents — Mutual funds Equity securities U.S. Government securities Corporate bonds Real estate — Due from other governments - State Due from District Due from employees Due from securities sold Accrued investment income TOTAL ASSETS LIABILITIES Accounts payable L Due for securities purchased TOTAL LIABILITIES L NET POSITION L, Restricted for DROP benefits Restricted for defined pension benefits L. TOTAL NET POSITION L L The accompanying notes are an integral part of this statement. Page 11 of 102 Firefighters' Pension Fund $ 4,344,726 2,436,937 30,688,898 5,732,235 8,054,304 5,606,820 56,863,920 1,411,547 221,724 16,584 18,283 124,930 58,656,988 72,055 55,415 127.470 438,296 8,091,222 $ 58,529,518 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT STATEMENT OF CHANGES IN FIDUCIARY _ NET POSITION - FIDUCIARY FUND Year Ended September 30, 2016 ADDITIONS Contributions: Employer Plan members ` Buybacks State of Florida, insurance premiums Total contributions Investment income: ` Net appreciation (depreciation) including realized gains/losses Interest and dividends Less: investment expenses ` Net investment income (loss) Other income L L TOTAL ADDITIONS DEDUCTIONS Refunds of contributions Benefits paid Administrative expenses TOTAL DEDUCTIONS NET INCREASE IN NET POSITION NET POSITION - BEGINNING NET POSITION - ENDING The accompanying notes are an integral part of this statement. Page 12 of 102 Firefighters' Pension Fund $ 1,750,382 353,357 28,124 1,411,547 3,543,410 2,563,065 1,553,984 4,117,049 (326,741) 3,790,308 6,144 7,339,862 252,448 90,345 342,793 6,997,069 51,532,449 $ 58,529,518 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 13 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES OrIjanization North Collier Fire Control and Rescue District (the "District") is an independent special taxing district located in Collier County, Florida. On January 1, 2015, the North Collier Fire Control and Rescue District was officially formed by merging the North Naples Fire Control and Rescue District and the Big Corkscrew Island Fire _ Control and Rescue District. On February 6, 2014, the two Districts entered into an Interlocal Agreement to merge. Each Board adopted a resolution identifying their intent to initiate the voluntary merger process pursuant to Florida Statute Chapter 189.074. The two Districts created a proposed Joint Merger Plan which was adopted by both Boards and ultimately put before the voters of each District by referendum. On November 4, 2014, voters from both districts approved the referendum to merge the two districts into one. On June 10, 2015, the Governor signed into legislation the official enabling act of the new District via Laws of Florida (LOF) Chapter 2015-191. The merger is intended to ensure the best possible emergency response times, operational efficiencies and ensure long term sustainability �— of the combined District. There was no impairment of capital assets as the result of the merger, which was effective as of January 1, 2015 and no significant accounting adjustment other than to combine the assets, liabilities and net position/fand balance at January 1, 2015 of both Districts. The District has the general and special powers L prescribed by Florida Statute Chapters 189, 191 and 633.15. The District is governed by a five (5) member elected Board of Commissioners. Commissioners serve on a staggered four (4) year term basis. L The North Collier Fire Control and Rescue District provides fire control and protection services, fire safety, inspections, code enforcement, fire hydrant maintenance, firefighter training, and crash and fire rescue services as well as basic and advanced life support services. In providing these services, the District operates and maintains ten (10) stations and the related equipment and employs approximately 190 full-time professional firefighters and administrative staff. During the year ended September 30, 2009, the North Naples Fire Control and Rescue District entered into a joint venture agreement with Florida SouthWestern State College (FS W) for the operation of the North Collier Fire Training Center (NCFTC) to educate and train students as State Certified Firefighters. The North Collier Fire Control and Rescue District is now licensed to operate the NCFTC and FSW is the program coordinator. The District provides the training room and training r. - NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 14 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization, continued facilities for the NCFTC. FSW, as program coordinator, is responsible for the operations of the NCFTC including but not limited to the screening and enrolling of students and for screening and engaging instructors. Therefore, the activities of the NCFTC are not included in the District's basic financial statements. Reporting Entity The District adheres to Governmental Accounting Standards Board (GASB) Statement Number 14, "Financial Reporting Entity" (GASB 14), as amended by GASB Statement Number 39, "Determining Whether Certain Organizations Are �- Component Units" (GASB 39) and GASB Statement Number 61, "The Financial Reporting Omnibus - An Amendment of GASB Statements No. 14 and No. 34" (GASB 61). This Statement requires the basic financial statements of the District (the primary ` government) to include its component units, if any. A component unit is a legally separate organization for which the elected officials of the primary government are financially accountable. Based on the criteria established in GASB 14, as amended, there are no component units required to be included or included in the District's basic financial statements. Government -wide Financial Statements The government -wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the activities of the District and do not emphasize fund types. These governmental activities comprise the primary government. Fiduciary funds are properly not included in the government -wide r. financial statements. General governmental and intergovernmental revenues support the governmental activities. The purpose of the government -wide financial statements is to allow the user to be able to determine if the District is in a better or worse ` financial position than the prior year. The effect of all interfund activity between governmental funds has been removed from the government -wide financial L statements. ` Government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the pension fund financial statements. Under the accrual basis of accounting, revenues, expenses, k— NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 15 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Government -wide Financial Statements, continued ` gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement Number 33, ` "Accounting and Financial Reporting for Nonexchange Transactions" (GASB 33). Amounts paid to acquire capital assets are capitalized as assets in the government -wide financial statements rather than reported as expenditures. Proceeds of long-term debt are recorded as liabilities in the government -wide �. financial statements rather than as other financing sources. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability in the government -wide financial statements rather than as expenditures. b1— The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are ` clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given fiznction, and 2) grants and ` contributions that are restricted to meeting the operational or capital improvements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. Program revenues are considered to be revenues generated by services performed and/or by fees charged such as inspection fees, burn permits, and hydrant tests. Fund Financial Statements The District adheres to GASB Number 54, "Fund Balance Reporting and Governmental Fund Type Definitions" (GASB 54). Essentially, the implementation resulted in adoption of a fund balance policy and reclassification of the components ` within fund balance. M 6— NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 16 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Fund Financial Statements, continued The accounts of the District are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity or net position, revenues, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the District's governmental funds are presented after the government -wide financial statements. These statements display information about major funds individually and nonmajor funds in aggregate for governmental funds. The fiduciary statement includes financial information for the firefighters' pension fund. The fiduciary fund represents assets held by the District in a custodial capacity for the benefit of other individuals. Governmental Funds When both restricted and unrestricted resources are combined in a fund, expenditures are considered to be paid first from restricted resources, as appropriate, and then from unrestricted resources. Governmental fund financial statements are bl= reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are LM collected within the current period or soon thereafter to pay liabilities of the current period. The District's major funds are presented in separate columns on the governmental fund financial statements. The definition of a major fund is one that meets certain criteria set forth in GASB Statement Number 34, "Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments" (GASB 34). The funds that do not meet the criteria of a major fund are considered non -major funds and are combined into a single column on the governmental fund financial statements. Separate financial statements are provided for governmental funds. Major individual governmental funds are reported in separate columns on the fund financial statements. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 17 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 L NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Governmental Funds, continued In accordance with the District's enabling documents, separate budgets are maintained for the North Naples Service Delivery Area (NN) and the Big Corkscrew Island Service Delivery Area (BCI). Separate budgets are required for each service delivery area until such time as when one consistent millage rate is adopted for both service delivery areas. As such, separate service delivery area budget vs. actual comparison statements are included in the required supplementary information and a combining schedule is included in the other information section as the District must ■— maintain and report a single general fund. Fiduciary Fund The pension trust fund accounts for the activities of the Firefighters' Pension Trust (FPT) Fund, which accumulates resources for the pension benefit payments to qualified firefighters. The net position of this fund is not considered to be part of the net position of the District and is not available to the District's creditors. Measurement Focus and Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the basic financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The government -wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 18 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Measurement Focus and Basis of AccountinLy, continued Revenues are considered to be available when they are collectible within the current period and soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers tax revenues to be available if they are collected within sixty days of the end of the current fiscal period. hm Revenues susceptible to accrual are interest on investments, and intergovernmental revenues. Interest on invested funds is recognized when earned. Intergovernmental hm revenues that are reimbursements for specific purposes or projects are recognized when all eligibility requirements are met. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include: (1) principal and interest on long-term debt, if any, is recognized when due; and (2) expenditures are generally not divided between years by the recording of prepaid expenditures. Separate financial statements are provided for governmental funds and the fiduciary funds, even though the latter are excluded from the government -wide financial statements. Non-current Government Assets/Liabilities GASB 34 requires non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as notes payable and capital leases, to be reported in the governmental activities column in the government -wide Statement of Net Position. Maior Funds The District reports the following major governmental funds: The General Fund is the District's primary operating fund. It accounts for all financial �.. resources of the District (including both service delivery areas), except those required to be accounted for in another fund. bmw NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 19 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Major Funds, continued The Impact Fee Funds (the District has two (2) Impact Fee Funds) consist of fees imposed and collected by Collier County based on new construction within each service delivery area of the District. The fees are restricted and can only be used for certain capital expenditures associated with growth within the District. Non-Maior Fund L The District reports the following non -major fund: The Inspection Fee Fund (North Naples service delivery area) is used by the District — to account for the receipt and expenditures of its Inspection Fee Program. Fees are charged for the inspection of new building construction. The fees are collected by Collier County and are remitted to the District. Fiduciary Fund The Fiduciary Fund is excluded from the government -wide financial statements because the resources of those funds are not available to support the District's programs. The only type of fiduciary fund the District maintains is a Firefighters' Pension Fund, which accounts for retirement assets held by the Plan that are payable to qualified firefighters upon retirement. Budgetary Information The District has elected to report budgetary comparisons of its major funds and its non -major fund as required supplementary information (RSI). Investments The District adheres to the requirements of GASB Statement Number 31, "Accounting and Financial Reporting for Certain Investments and for External Investment Pools," (GASB 31) in which all investments are reported at fair value. Investments, including restricted investments, consist of certificates of deposit, U.S. Government securities, corporate debt and equity securities, and securities of government agencies unconditionally guaranteed by the U.S. Government. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 20 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Capital Assets Capital assets, which include land, construction in progress, buildings, equipment and vehicles, are reported in the government -wide Statement of Net Position. The District follows a capitalization policy which calls for capitalization of all capital _ assets that have a cost or donated value of $1,000 or more and have a useful life in excess of one year. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair market value on the date donated. Public domain (infrastructure) capital assets consisting of certain improvements other than building, including curbs, gutters and L drainage systems, are not capitalized, as the District generally does not acquire such assets. No debt -related interest expense is capitalized as part of capital assets in accordance with GASB 34. Maintenance, repairs and minor renovations are not capitalized. The acquisition of L land and construction projects utilizing resources received from Federal and State agencies are capitalized when the related expenditure is incurred. Expenditures that materially increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement, the cost is eliminated from the respective accounts. Expenditures for capital assets are recorded in the fund statements as current expenditures. However, such expenditures are not reflected as expenditures in the government -wide statements, but rather are capitalized and depreciated. Depreciable capital assets are depreciated using the straight-line method over the _ following estimated useful lives: Capital Asset Years Buildings 15-30 Capital Assets acquired under Capital Lease 6 Office Equipment 3-30 Vehicles 3-10 Equipment and Machinery 3-15 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 21 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Budgets and Budgetary Accounting The District adopted separate annual budgets for each of the two (2) service delivery areas within the District's General Fund. The District adopted annual budgets for the Special Revenue Funds - Impact Fee Fund - NN, Impact Fee Fund - BCI and the Inspection Fee Fund - NN. No budget was adopted or required to be adopted for the Firefighters' Pension Trust Fund. r.. The District follows these procedures in establishing budgetary data for the General Fund, the Impact Fee Funds, and the Inspection Fee Fund: 1. During the summer of each year, the District Fire Chief submits to the Board of Commissioners a proposed operating budget for the fiscal year commencing on the upcoming October 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain citizen comments. — 3. The budget is adopted by approval of the Board of Commissioners. — 4. Budget amounts, as shown in these basic financial statements, are as originally adopted or as amended by the Board of Commissioners. 5. The budget is adopted on a basis consistent with accounting principles generally accepted in the United States of America. 6. The level of control for appropriations is exercised at the fund level. 7. Appropriations lapse at year-end. r.. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 22 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Budgets and Budgetary Accounting, continued Several budget amendments were approved by the Board of Commissioners during the year ended September 30, 2016. Budgeted revenues and expenditures were increased as follows: Amount �- General fund - NN SDA $ 1,588,630 General fund - BCI SDA 276,747 `" Total General Fund $ 1,865,377 Impact fee fund - NN SDA $ 123,729 Impact fee fund - BCI SDA $ 350,618 Inspection fee fund $ 18,748 Impact Fees/Deferred Revenue The District levies an impact fee on new construction within the District. The intent of the fee is for growth within the District to pay for capital improvements needed due to `" the growth. The fee is imposed and collected by Collier County and remitted to the District which accounts for impact fees collected by service delivery area. The fee is refundable if not expended by the District within six (6) years from the date of collection. The District, therefore, records this fee as restricted cash and as unearned revenue until the date of expenditure, at which time it is recognized as revenue and charged to capital outlay in the fund financial statements and capital assets in the government -wide financial statements. Net Position In the government -wide financial statements, net position is identified as restricted when there are externally imposed constraints as to its use, such as through debt covenants, by grantors, or by law. hm »>K NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 23 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 OXK NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Fund Balances The governmental fund financial statements the District maintains include nonspendable, restricted, assigned, and unassigned fund balances. Nonspendable fund balances are those that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Criteria include items that are not expected to be converted into cash, for example ` prepaid expenses. Restricted fund balances are those that are restricted by a third party such as inspection fees. Restricted fund balances can only be spent for the stipulated ` purposes. The District's assigned fund balances are a result of official action of the District's Board. The District's intent is to maintain a minimum assigned fund balance level of three (3) months of budgeted total expenditures. The assigned fund balance includes �. the District's operational and capital reserves as well as its disaster reserve. At September 30, 2016, fund balance is also assigned for a variety of specific items by District Board action. Any use of the assigned fund balance requires the District's Board approval. Due To/From Other Funds Interfund receivables and payables arise from interfund transactions and are recorded �— by funds affected in the period in which the transactions are executed. Due From Other Governments No allowance for losses on uncollectible accounts has been recorded since the ` District considers all amounts to be fully collectible. Indirect Costs Expenses are allocated between service and delivery areas on the same line item based upon a Board approved cost allocation plan. For the year ended September ` 30, 2016 the costs were allocated on a percentage basis of 86.52% to NN SDA and 13.48% to BCI SDA. No costs are allocated between line items. b- - NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 24 of 102 NOTES TO THE FINANCIAL STATEMENTS ` September 30, 2016 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Compensated Absences The District's employees accumulate annual leave based on the number of years of continuous service. Upon termination of employment, employees can receive �.. payment of accumulated annual leave if certain criteria are met. The costs of accumulated annual leave benefits (compensated absences) are expended in the respective operating funds when payments are made to employees. However, the liability for all accrued vacation and personal leave benefits is recorded in the government -wide Statement of Net Position. Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed by the District because, at present, it is not necessary in order to assure effective budgetary control or to facilitate effective cash planning and control. Manamement Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make — estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. Interfund Transactions The District considers interf ind receivables (due from other funds) and interfund _ payables (due to other funds) to be loan transactions to and from other funds to cover temporary (three months or less) cash needs. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are ` properly applicable to another fund are recorded as expenditures/expenses in the reimbursing funds and as reduction of expenditures/expenses in the fund that is �. reimbursed. Such amounts are eliminated in the government -wide financial statements. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 25 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Pensions In the government -wide statement of net position, liabilities are recognized for the District's proportionate share of each pension plan's net pension liability. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Firefighters' Pension Fund (FPF), the Florida Retirement System (FRS) and the Health Insurance Subsidy (HIS) defined benefit plan and additions to/deductions from fiduciary net position have been determined on the same basis as they are reported by the Plans. For this purpose, benefit payments, (including refunds of employees' contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value for the FPF. The District's retirement plans and related amounts are described in a subsequent note. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to future periods and so will not be recognized an as outflow of resources (expense/expenditure) until then. The deferred amount on pensions is reported only in the government -wide statement of net position. The deferred outflows of resources related to pensions are discussed in a subsequent note. In addition to liabilities, the statement of net position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The deferred amount on pensions is reported only in the government -wide statement of net position. A deferred amount on pension results from the difference in the expected and actual amounts of experience, earnings, and contributions. This amount is deferred and amortized over the service life of all employees that are provided with pensions through the pension plan except earnings which are amortized over five to seven years. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 26 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Reclassifications Certain amounts in the financial statements have been reclassed to conform with the current presentation. These reclassifications had no effect on the results of operations or fund equity. Subsequent Events Subsequent events have been evaluated through February 23, 2017, which is the date the basic financial statements were available to be issued. ... NOTE B - CASH AND CASH EQUIVALENTS Cash and cash equivalents of the primary government (exclusive of the Firefighters' Pension Fund) were $13,646,025, of which $1,332,708 was restricted at September 30, 2016. Total cash and cash equivalents included cash on hand of $1,300 at September 30, 2016. Deposits L The District's deposit policy allows deposits to be held in demand deposit and money market accounts and is consistent with Florida Statutes, Chapter 218.415(17). All U.- District depositories are institutions designated as qualified depositories by the State Treasurer at September 30, 2016. ikW ?MR NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE B - CASH AND CASH EQUIVALENTS, CONTINUED Deposits, continued Deposits consist of the following at September 30, 2016: District Carrying Amount Unrestricted General Fund Depository Accounts Money Market Total General Fund Restricted Page 27 of 102 Bank Balance $ 5,937,026 $ 6,329,410 6,374,991 6,374,991 $ 12,312,017 $ 12,704,401 r.. General Fund Depository Accounts $ - $ - Special Revenue Funds Impact Fee - NN Depository Accounts 332,909 332,909 Impact Fee - BCI L Depository Accounts 791,824 799,868 Inspection Fee Depository Accounts 207,975 207,975 Total Special Revenue Funds 1,332,708 1,340,752 L Total Restricted Funds $ 1,332,708 $ 1,340,752 _ The District's deposits were entirely covered by federal depository insurance or by collateral pursuant to the Public Depository Security Act (Florida Statute 280) of the State of Florida. Bank balances approximate market value. r. The District held no other types of deposits during the year ended September 30, 2016. r.. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 28 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE B - CASH AND CASH EQUIVALENTS, CONTINUED Restricted Cash and Equivalents how The following is a brief description of the restrictions on cash and cash equivalents: The Impact Fee accounts are used to account for the deposit of impact fees received by service delivery area and are restricted for certain capital asset acquisition associated with growth within the District. Impact fees are collected by Collier County for the District pursuant to County ordinance and District resolution. The Inspection Fee account is used to account for inspection fees collected for performing new construction fire inspections within the District. Such revenue is restricted for inspection service related costs. NOTE C - INVESTMENTS District - Investments Investments of the District (primary government) (exclusive of the Firefighters' Pension Fund) was $1,300,000 (market value) and $1,300,000 (bank balance) at September 30, 2016 and consisted of certificates of deposit which were designated as public funds with qualified public depositories, and were entirely collateralized pursuant to the Public Depository Security Act (Florida Statute 280) of the State of Florida. Firefighters' Pension Plan - Investments Investments held in the Firefighters' Pension Trust Fund (the "Plan") totaled $56,863,920 (including $4,344,726 in cash and cash equivalents, $2,436,937 in mutual funds, $30,688,898 in equity securities, $13,786,539 in fixed income securities, and $5,606,820 in real estate) at September 30, 2016. Such investments are administered in accordance with Firefighters' Pension Board policy. This policy provides for investments in cash and cash equivalents, money markets, mutual funds, equities, treasury notes, federal agency guaranteed securities, corporate bonds, notes and/or equities and real estate. r.. The Firefighters' Pension Trust Fund accounts for resources held to fund the respective firefighter employee pension benefits. L W.•» NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 29 of 102 NOTES TO THE FINANCIAL STATEMENTS (wY3 September 30, 2016 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan - Investments, continued The Firefighters' Pension Trust Fund investments were held by a financial and investment institution and are subject to certain insurances up to limits specific to the trustee/custodian institution and retirement trust funds. These assets are subject to loss of principal. lo. Investment Authorization: The Plan's investment policy is determined by the Plan's Board of Trustees. The policy has been designed by the Board to conduct the operations of the Plan in a manner so that the assets will provide the pension and other benefits provided under applicable laws. As such, the policy is designed by the Board to maximize the Plan's asset value, while assuming risk that is consistent with the Board's risk tolerance. The Trustees are authorized to acquire and retain every kind of property (real, personal or mixed) and every kind of investment specifically including, but not by way of limitation, money markets, mutual funds, bonds, debentures, stocks (preferred or common) and other corporate obligations. Investments are carried at fair value at September 30, 2016. Interest and dividend revenues are recorded as earned. Purchases and sales of investments are recorded on the trade -date basis. Unrealized gains and losses are presented as net appreciation (depreciation) in fair value of investments on the statement of changes in fiduciary net position along with gains and losses realized on sales of investments. lo. Given the inherent nature of investments, it is reasonably possible that changes in the value of those investments will occur in the near term and that such changes could materially affect the amounts reported (loss of principal). Investment in all equity securities shall be limited to those listed on a major U.S. stock exchange and limited to no more than 80% (at market) of the Plan's total asset value. The equity position in any one company shall not exceed 5% of the Plan's total assets at market. Investments in stock of foreign companies shall be limited to 25% of the value of the Plan's total assets at market. The fixed income portfolio shall be compromised of securities with a quality rating of investment grade or higher by a major rating service. Except for Treasury and ` Agency obligations, the debt portion of the Plan shall contain no more than 10% of a given issuer irrespective of the number of differing issues. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 30 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan - Investments, continued Investment Authorization, continued: The current target allocation at September 30, 2016, of these investments at market is as r.. follows: Investment Long Term bum Authorized Policy -Target Expected Real TnvPctmPnte Allnratinn 0/ Rate Ratilm o/ Domestic Equities 35-55% 7.5% Fixed Income 20-40% 2.5% Real Estate 0-15% 4.5% International Equities 10-25% 8.5% International Fixed Income 0-10% 3.5% Cash and Cash Equivalents Minimal Minimal Interest Rate Risk: Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to change in market interest rates. As a means of limiting its exposure to interest rate risk, the Plan diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one i.., issuer with various durations of maturities. Information about the sensitivity of the fair values of the Plan's fixed income investments to market interest rate fluctuations is provided by the following table that shows the distribution of the Plan's investment by maturity at September 30, 2016: Investment Maturities (in > ears) Investment Fair Value Less than 1 1 to 5 6 to 10 More than 10 Corporate bonds $ 8,054,304 $ 305,522 $ 4,521,056 $ 1,631,146 $ 1,596,581 Mutual funds 2,436,937 - 1,266,964 834,164 335,809 lo. U.S. Agencies 4,541,473 - - 226,219 4,315,254 U.S. Treasuries 1,190,762 - 31,774 95,892 1,063,095 $ 16,223,476 $ 305,522 $ 5,819,794 $ 2,787,421 $ 7,310,739 Credit Risk: Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The Plan's �- investment policy utilizes portfolio diversification in an effort to mitigate this risk. 71//L NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 31 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 L NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan - Investments, continued `" Credit Risk, continued: The following table discloses credit rating by fixed income investment type at September 30, 2016, if applicable: Fair Percentage of Value Portfolio i.. Quality rating of credit risk debt securities A $ 653,831 1.24 % Al 487,822 0.93 L A2 977,611 1.86 A3 1,422,627 2.71 AA 266,113 0.51 `, Aa2 628,491 1.20 Aa3 360,561 0.69 AAA 1,784,763 3.40 B 144,266 0.27 _ Bal 118,548 0.23 Bat 55,745 0.11 Baal 2,554,972 4.86 Baa2 1,124,656 2.14 Baa3 279,763 0.53 BB 513,706 0.98 BBB 711,829 1.36 Caa 137,687 0.26 Unrated government securities 4,000,485 7.62 6' Total credit risk debt securities $ 16,223,476 30.89 % `, * Obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not have purchase limitations. _ Concentration of Credit Risk: The investment policy of the Plan contains limitations on the amount that can be invested in any one equity issuer as well as maximum portfolio allocation percentages. There were no individual equity investments that represented 5% or more of Plan net position at September 30, 2016. In addition, the Plan contains limitations on the ... amount that can be invested in any one debt issuer, except for the debt securities issued by the U.S. Government. There were no investments in non -U.S. Government debt securities that represented 10% or more of Plan net position at September 30, 2016. Custodial Credit Risk: This is the risk that in the event of the failure of the counterparty, the plan will not be able to recover the value of its investments or collateral securities that are in the NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 32 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE C - INVESTMENTS, CONTINUED r.. Firefighters' Pension Plan - Investments, continued Custodial Credit Risk, continued: possession of an outside party. This risk is generally measured by the assignment of a rating by a nationally recognized statistical rating organization. Consistent with the Plan's investment policy, the investments are held by the Plan's custodial bank and registered in the Plan's name. Foreign Currency Risk: This is the risk that fluctuations in currency exchange rate may affect transactions conducted in currencies other than U.S. Dollars and the carrying value of foreign r.. investments. The Plan's exposure to foreign currency risk is derived mainly from its investments in international equity funds. The Plan owns shares in international equity funds and does not own the individual securities. The investment policy limits �— the foreign investments to no more than 25% of the Plan's investment balance in equities and no more than 10% in fixed income. As of September 30, 2016, the Plan's exposure to foreign currency risk related to foreign equity funds and bonds is as follows: Fair Percentage of Value Portfolio International equity funds and fixed income (bonds) $ 11,372,784 2D.YA L Fair Value Measurements: Fair value is defined as the price that would be received to sell an asset or paid to �- transfer a liability in an orderly transaction between market participants at the measurement date. The Plan categorizes its fair value measurements within the fair value hierarchy as established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value `" are observable in the market as follows: Level 1 - Inputs to the valuation methodology are based upon quoted prices for identical assets in active markets. Level 2 - Inputs to the valuation methodology are based upon observable inputs for the assets either directly or indirectly, other than those considered Level 1 inputs, which may include quoted prices for identical assets in markets that are not b. '— NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 33 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan - Investments, continued Fair Value Measurements, continued: considered to be active, and quoted prices of similar assets in active or inactive Iwo markets. Level 3 - Inputs to the valuation methodology are based upon unobservable inputs. Following is a description of the valuation methodologies used for asset measured at •— fair value. 6M Common stock: Valued at the closing price reported on the New York Stock Exchange. ` Government securities: Valued using pricing models maximizing the use of observable inputs for similar securities. Mutual funds: Valued at the daily closing price as reported by the Plan. Mutual funds held by the Plan are open-ended mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value (NAV) and to transact at that price. The mutual funds held �— by the Plan are deemed to be actively traded. Corporate bonds: Valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing the value on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds, the bond is valued under a discounted cash flows approach that maximizes observable inputs, such as current yield of similar instruments, but included adjustments for certain risks that may not be observable, such as credit and liquidity risks or a broker quote, if available. Real estate: Valued at the net asset value of shares held by the Plan at year end. The Plan has investments in private market real estate investments for which no liquid public market exists. r.. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 34 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan - Investments, continued Fair Value Measurements, continued: The following table presents the Plan's fair value hierarchy for investments at fair value as of September 30, 2016: Fair Value Measurements Using Quoted Prices in Significant r.. Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level l) (Level 2) (Level 3) Investments by fair value level Equity securities: Common stocks $ 24,080,123 $ 24,080,123 $ - $ - -- Mutual funds 6,518,312 - 6,518,312 - REIT 90,463 - 90,463 - Total equinity securities 30,688,898 24,080,123 6,608,775 - Debt securities U.S. treasury securities 1,190,762 - 1,190,762 - U.S. agency securities 4,541,473 - 4,541,473 - 6= Corporate bonds 8,054,304 8,054,304 - Fixed income mutual funds 2,436,937 - 2,436,937 - Total debt securities 16,223,476 16,223,476 - r.. Total investments by fair value 46,912,374 $ 24,080,123 $ 22,832,251 $ - r.. Investments measured at the net asset value (NAV) ' Real estate fund 5,606,820 Money market funds (exempt) 4,344,726 Total investments $ 56,863,920 * As required by GAAP, certain investments have not been classified in the fair value hierarchy. The fair value amounts presented in the previous table are intended to permit reconciliation for the fair value hierarchy to the total investment line item in the Statement of Fiduciary Net Position. hum NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 35 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE C - INVESTMENTS, CONTINUED r.. Firefighters' Pension Plan - Investments, continued Fair Value Measurements, continued: The following table summarizes investment for which fair value is measured using the net asset value per share practical expedient, including their relate unfunded commitments and redemption restrictions: Investments measured at the NAV Redemption Unfunded Frequency (if Redemption Fair Value Commitments Currently Eligible Notice Period Real estate fund $ 5,606,820 $ - Quarterly 90 Days r.. Real estate fund: The fund is an open-ended real estate investment fund investing L.. primarily in core institutional office, retail, industrial, and multi -family properties located throughout the United States. The investment is valued at NAV and its redemption must be received by the fund 90 days prior to quarter end. NOTE D - DUE TO/FROM OTHER FUNDS Interfund receivables and payables at September 30, 2016, are as follows: Due from Due to Fwd Other Funds Other Funds General Fund: LImpact Fee Fund - NN $ - $ - Impact Fee Fund - BCI - Inspection Fee Fund 408,392 1,395 Total General Fund 408,392 1,395 6M Special Revenue Funds: Impact Fee Fund - NN General Fund - - Impact Fee Fund - BCI General Fund - - Inspection Fee Fund General Fund 1,395 408,392 Total Special Revenue Funds 1,395 408,392 Total $ 409,787 $ 409,787 Interfund receivables and payables were eliminated for presentation purposes in the Statement of Net Position at September 30, 2016. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 36 of 102 NOTES TO THE FINANCIAL STATEMENTS amm September 30, 2016 NOTE E - CAPITAL ASSETS ACTIVITY Related Debt (447,328) Net investment in capital assets $ 31,623,903 The following is a summary of changes in capital assets activity for the year ended September 30, 2016: Balance Balance October 1 Increases/ Decreases/ Adjustments/ September 30 2015 Additions Retirements Reclassifications 2016 L Capital Assets Not Being Depreciated: Land $ 11,947,895 $ 875,222 $ - $ - $ 12,823,117 Construction in progress 1,130,645 51,444 - - 1,182,089 L Total Capital Assets Not Being Depreciated 13,078,540 926,666 - - 14,005,206 Capital Assets Being Depreciated: Assets held under capital lease 160,240 - - - 160,240 boom Buildings 20,104,344 100,532 (34,325) - 20,170,551 Office equipment 1,015,399 233,751 (100,114) 40,647 1,189,683 Vehicles 10,000,490 1,036,509 (337,489) - 10,699,510 Equipment & machinery 4,297,173 381,214 (372,511) (40,647) 4,265,229 Total Capital Assets Being Depreciated 35,577,646 1,752,006 (844,439) - 36,485,213 Less Accumulated Depreciation: Assets held under capital lease (64,542) (26,707) - - (91,249) Buildings (6,392,330) (445,502) 6,647 (9,020) (6,840,205) r.. Office equipment (635,106) (97,542) 100,548 (37,884) (669,984) Vehicles (7,567,741) (497,722) 337,837 (47,584) (7,775,210) Equipment & machinery (3,083,394)3( 81,458) 327,824 94,488 (3,042,540) Total Accumulated Depreciation (17,743,113) 1,448,931) 772,856 - (18,419,188) _ Total Capital Assets being Depreciated, Net 17,834,533 303,075 (71,583) - 18,066,025 Capital Assets, Net $ 30,913,073 $ 1,229,741 $ 71,583 $ - 32,071,231 Related Debt (447,328) Net investment in capital assets $ 31,623,903 bm NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 37 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE E - CAPITAL ASSETS ACTIVITY, CONTINUED Depreciation expense was charged to the following functions during the year ended b• September 30, 2016: Amount L General Government Total Depreciation Expense $1,448,931 NOTE F - LONG-TERM OBLIGATIONS bow The following is a summary of changes in long-term obligations for the year ended September 30, 2016: Balance Retirements Balance Amounts October 1 And September 30 Due Within 2015 Additions Adjustments 2016 One Year Net OPEB obligation $ 2,217,063 $ 795,538 $ - $ 3,012,601 $ - Net Pension Liability - FRS 4,935,293 5,413,173 - 10,348,466 - �-- Net Pension Liability - HIS 2,155,823 353,486 - 2,509,309 - Net Pension Liability - FPT 7,555 3,186,552 - 3,194,107 - Capital Lease - NN 79,503 - (34,675) 44,828 29,377 Note Payable - BCI 460,000 - (57,500) 402,500 57,500 Compensated Absences 1,965,499 113,550 - 2,079,049 - ... $11,820,736 $ 9,862,299 $ (92,175) $21,590,860 $ 86,877 The following is a summary of long-term obligations at September 30, 2016: Amount _ Net OPEB obligation. Cumulative difference between annual OPEB cost and District payments toward the cost of post Lemployment benefits other than pensions since GASB No. 45 transition date of October 1, 2009. (Combined SDA) $3,012,601 L Net pension obligation - FRS pension plan. This amount is actuarially determined through calculation based upon the audited financial statements of the Florida FRS Plan. 10,348,466 L Net pension obligation - HIS plan. This amount is actuarially determined through calculation based upon the — audited financial statements of the Florida FRS Plan. 2,509,309 bow NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 38 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE F - LONG-TERM OBLIGATIONS, CONTINUED Net pension obligation - Firefighters' Pension Trust (FPT) plan. — This amount is actuarially determined through calculation based upon the audited financial statements of the FPT Plan. 3,194,107 $160,240 capital lease payable of a chest compression system to financial institution over a 60 month period ending March 2018 in equal payments of $2,671 at a zero stated interest rate. (NN) 44,828 $1,150,000 note payable to SunTrust Bank over a 20 year period i.. ending November 1, 2024 in equal annual principal payments on November 1 of $57,500 plus accrued interest at a rate of 3.75%. The note is collateralized by Impact Fees. (BCI) 402,500 Non-current portion of compensated absences. Employees of the L District are entitled to paid vacation based on length of service and job classification. (Combined SDA) 2,079,049 21,590,860 Less Current Portion (86,877) Long -Term Portion $ 21,503,983 The annual debt service requirements at September 30, 2016, were as follows: Capital Note Years Ending Lease Payable Payable Total September 30 Principal (1) Principal (2) Principal 2017 $ 29,377 $ 57,500 $ 86,877 2018 15,451 57,500 72,951 2019 - 57,500 57,500 2020 - 57,500 57,500 2021 - 57,500 57,500 2022-2023 - 115,000 115,000 — $ 44,828 $ 402,500 447,328 Net OPEB obligation 3,012,601 Net Pension Liability - FRS 10,348,466 Net Pension Liability - HIS 2,509,309 Net Pension Liability - FPT 3,194,107 Compensated absences 2,079,049 Total long-term debt $ 21,590,860 .... (1) Debt service paid through General Fund (2) Debt service paid through Impact Fee Fund (BCI) Interest expense for the year ended September 30, 2016, was $17,250. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 39 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS The following three retirement plans have been established by the District: Plan 1 - Florida Retirement System (FRS) Plan 2 - Firefighters' Pension Trust Fund (Florida Statute 175) Plan 3 - 401(a) Plan Employee participation in a specific plan is based on the respective employee's original hire date. General Information about the Florida Retirement System The Florida Retirement System ("FRS") was created in Chapter 121, Florida Statutes. The FRS was created to provide a defined benefit pension plan ("Pension Plan") for participating public employees. All District employees are participants in the Statewide Florida Retirement System (FRS) under authority of Article X, Section 14 of the State Constitution and Florida Statutes, Chapters 112 and 121. The FRS was amended in 1998 to add the Deferred Retirement Option Program ("DROP") under the defined benefit plan and amended in 2000 to provide an integrated defined contribution plan alternative to the defined benefit plan for FRS members effective ` July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a separate cost-sharing, multiple -employer defined benefit pension plan to assist retired members of any State -administered retirement system in paying the costs of health insurance. Essentially all regular employees of the District are eligible to enroll as members of the State -administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, _ Florida Statutes; and Florida Retirement System Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action ` from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of two cost-sharing, multiple -employer defined benefit plans (Pension and HIS Plans) and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information dated June 30, 2016, is available from the Florida Department of Management Services' Web site �"' (www.dms.myflorida.com). NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 40 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED General Information about the Florida Retirement System, continued The District's total FRS and HIS pension expense was $1,533,805 for the year ended September 30, 2016 and is recorded in the government -wide financial statements. Total District actual FRS and HIS retirement contribution expenditures were $1,186,368 and $761,542 for the years ended September 30, 2016 and 2015, respectively. The District contributed 100% of the required contributions. FRS Pension Plan Plan Description. The FRS Pension Plan ("Plan") is a cost-sharing, multiple - employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class - Members of the FRS who do not qualify for membership in the other classes. Senior Management Service Class (SMSC) - Members in senior management level positions. Special Risk Class - Members who are employed as certified firefighters and meet the criteria to qualify for this class. Elected Officials - Members who are elected by the voters within the District `M boundaries. bm Employees enrolled in the Plan prior to July 1, 2011, vest at six years of creditable service and employees enrolled in the Plan on or after July 1, 2011, vest at eight years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for those members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Members of both Plans (Pension and HIS) may include up to 4 years of credit for military service toward creditable service. The Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The Plan provides retirement, disability, death benefits, and annual cost of living adjustments to eligible participants. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 41 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the Plan to defer receipt of monthly — benefit payments while continuing employment with an FRS employer. An employee may participate in DROP for a period not to exceed 60 months after electing to L participate. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and �– are not accruing additional pension benefits. Benefits Provided. Benefits under the Plan are computed on the basis of age, and/or years of service, average final compensation, and credit service. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the five highest fiscal years' earnings; for the members initially enrolled on or after July 1, 2011, the average final compensation is the average of the eight highest fiscal years' earnings. The total percentage value of the benefit received is — determined by calculating the total value of all service, which is based on retirement plan and/or the class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. The following chart shows the percentage value of each year of service credit earned: ;— Class, Initial Enrollment, and Retirement Age/Years of Service %Value Regular Class and elected members initially enrolled before July 1, 2011 Retirement up to age 62, or up to 30 years of service 1.60 Retirement at age 63 or with 31 years of service 1.63 Retirement at age 64 or with 32 years of service 1.65 Retirement at age 65 or with 33 or more years of service 1.68 Regular Class and elected members initially enrolled on or after July 1, 2011 Retirement up to age 65 or up to 33 years of service 1.60 Retirement at age 66 or with 34 years of service 1.63 Retirement at age 67 or with 35 years of service 1.65 Retirement at age 68 or with 36 or more years of service 1.68 Special Risk Regular Service from December 1, 1970 through September 30, 1974 2.00 L Service on or after October 1, 1974 3.00 Senior Management Service Class 2.00 a.. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 42 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED * As defined by the Plan. rAM FRS Pension Plan, continued i As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living �.. adjustment is a proportion of 3 percent determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3 percent. Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. L Contributions. The Florida Legislature establishes contribution rates for L participating employers and employees. Contribution rates during the year ended September 30, 2016 were as follows: r.. Percent of Gross Salary* Class Employee Employer (1) Employer (3) Employer (4) Florida Retirement System, Regular 3.00 7.37 7.26 7.52 Florida Retirement System, Senior Management Service 3.00 21.14 21.43 21.77 Florida Retirement System, Special Risk 3.00 19.82 22.04 22.57 Deferred Retirement Option Program - Applicable to Members from All of the Above Classes 0.00 12.28 12.88 12.99 Florida Retirement System, Reemployed Retiree (2) (2) N/A N/A Florida Retirement System, Elected Official 3.00 43.24 42.27 42.77 v. Notes: (1) Employer rates include 1.26 percent for the postemployment health insurance subsidy. Also, employer rates, other than for DROP participants, include .04 percent for administrative costs of the Investment Plan. Rates for 7/1/14 - 6/30/15. (2) Contribution rates are dependent upon retirement class in which reemployed. (3) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also, employer rates, other than for DROP participants, include .04 percent for administrative costs for the Investment Plan. Rates for 7/1/15 - 6/30/16. (4) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also, employer rates, other than for DROP participants, include .06 percent for administrative costs for ... the Investment Plan. Rates for 7/1/16 - 6/30/17. * As defined by the Plan. rAM ft— NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 43 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to the Pension Plan. At •.. September 30, 2016, the District reported an FRS pension liability of $10,348,466 for its proportionate share of the net pension liability. The net pension liability was bw measured as of September 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2016. The District's proportionate share of the net pension liability was based on the District's 2015-16 fiscal year contributions relative to the total 2015-16 fiscal year contributions of all participating members. At September 30, 2016, the District's proportionate share was .040983896 percent, which was an increase of .002774 percent from its proportionate share measure as of September 30, 2015. bw For the year ended September 30, 2016, the District recognized FRS pension expense of $1,421,070. In addition, the District reported deferred outflows of resources and deferred inflows of resources related to the pension from the following sources: Description v Differences between expected and actual experience r.. Change of assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between District contributions and proportionate share of contributions District contributions subsequent to the L measurement date Total v .— L. Deferred Outflows Deferred Inflows of Resources of Resources $ 792,358 626,051 2,674,952 1,712,255 275,427 $ 6,081,043 $ 96,351 2,628,102 $ 2,724,453 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 44 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued The deferred outflows of resources related to the FRS pension, totaling $275,427 resulting from District contributions subsequent to the measurement date, will be recognized as a reduction on the net pension liability in the fiscal year ended September 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the pension will be recognized in pension expense over the remaining service period of 6.4 years as follows: Fiscal Years Ending September 30 Amount 2017 $ 743,961 2018 743,961 2019 743,961 2020 743,961 2021 75,223 �- Thereafter 30,096 Total $ 3,081,163 Actuarial Assumptions. The total pension liability in the July 1, 2015, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.60 percent Real payroll growth 0.65 percent Salary increases 3.25 percent, average, including inflation Investment rate of return 7.60 percent, net of pension plan 6" investment expense, including inflation r.. Mortality rates were based on the Generational RP -2000 with Projection Scale BB. The actuarial assumptions used in the July 1, 2015, valuation were based on the results of an actuarial experience study for the period July 1, 2008 through June 30, 2013. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 45 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued The long-term expected rate of return on pension plan investments was not based on historical returns, but instead is based on a forward-looking capital market economic hm model. The allocation policy's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is hm based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the bm following table: bm L (1) As outlined in the Plan's investment policy Discount Rate. The discount rate used to measure the total pension liability was 7.60 percent. The Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return. Compound r.. Annual Annual Target Arithmetic (Geometric) Standard Asset Class Allocation (1) Return Return Deviation Cash 1% 3.0% 3.0% 1.7% Fixed income 18% 4.7% 4.6% 4.6% ` Global equity 53% 8.1% 6.8% 17.2% Real estate (property) 10% 6.4% 5.8% 12.0% Private equity 6% 11.5% 7.8% 30.0% _ Strategic investments 12% 6.1% 5.6% 11.1% Total 100% Assumed inflation - Mean 2.60% 1.90% bm L (1) As outlined in the Plan's investment policy Discount Rate. The discount rate used to measure the total pension liability was 7.60 percent. The Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return. in. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 46 of 102 NOTES TO THE FINANCIAL STATEMENTS §S,W„ September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued Sensitivity of the District's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The following presents the District's �. proportionate share of the net pension liability calculated using the discount rate of 7.60 percent which was reduced from 7.65%, as well as what the District's _ proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percentage -point lower (6.60 percent) or 1 -percentage -point higher (8.60 percent) than the current rate: 1% Current 1% Decrease Discount Rate Increase (6.60%) (7.60%) (8.60%) District's proportionate share of r. the net pension liability $ 19,052,227 $ 10,348,466 $ 3,103,735 Pension Plan Fiduciary Net Position. Detailed information about the pension plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State Administered Systems Comprehensive Annual Financial Report (FRS "CAFR") �. dated June 30, 2016. The FRS CAFR and actuarial reports may also be obtained by contacting the Division of Retirement at: Department of Management Services Division of Retirement �. Bureau of Research and Member Communications P.O. Box 9000 Tallahassee, FL 3231.5-9000 850-488-5706 or toll free at 877-377-1737 h' hqp://www.dms.myflorida.com/workforce operations/retirement/publications im— Payables to the Pension Plan. At September 30, 2016, the District reported a payable of $0 for the outstanding amount of contributions in the pension plan. 6. AMP NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 47 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED HIS Plan Plan Description. The Health Insurance Subsidy Plan ("HIS Plan") is a cost-sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is L administered by the Division of Retirement within the Florida Department of Management Services. Benefits Provided. For the year ended September 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment equal to the number of years of creditable service completed at the time of retirement multiplied by $5. The payments are at least $30 but not more than $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which can include Medicare. Contributions. The HIS Plan is funded by required contributions from FRS _ participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the year ended September 30, 2016, the contribution rate ranged between 1.66 percent and 1.66 �.. percent of payroll pursuant to Section 112.363, Florida Statutes. The District contributed 100 percent of its statutorily required contributions for the current and preceding three years. HIS Plan contributions are deposited in a separate trust fund from which HIS payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation ` or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or cancelled. r.. Pension Liabilities, Pension Expense, Deferred Outflows of Resources _ and Deferred Inflows of Resources Related to the HIS Plan. At September 30, 2016, the District reported a HIS liability of $2,509,309 for its proportionate share of the net HIS Plan's net pension liability. The net pension liability was measured as of September 30, 2016, and the total pension liability was used to calculate the net pension liability determined by an actuarial valuation as of July 1, 2016. The District's proportionate share of the net HIS liability was based on the NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 48 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED HIS Plan, continued District's 2015-16 fiscal year contributions relative to the total 2015-16 fiscal year contributions of all participating members. At September 30, 2016, the District's proportionate share was .021530658 percent, which was an increase of .000391 percent from its proportionate share measured as of September 30, 2015. For the fiscal year ended September 30, 2016, the District recognized HIS expense of $112,375. In addition, the District reported deferred outflows of resources and �— deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows Description of Resources of Resources Differences between expected and actual experience $ - $ 5,715 Change of assumptions 393,774 - Net difference between projected and actual _ earnings on HIS pension plan investments 1,269 - Changes in proportion and differences between District HIS contributions and proportionate share of HIS contributions 543,758 544,055 District contributions subsequent to the measurement date 28,743 - ` Total $ 967,544 $ 549,770 The deferred outflows of resources related to HIS, totaling $28,743, resulting from District contributions subsequent to the measurement date, will be recognized as a L reduction on the net pension liability in the year ended September 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense over the remaining service period of 7.2 years as follows: Fiscal Years Ending 1.. September 30 Amount 2017 $ 62,859 2018 62,859 2019 62,859 2020 62,860 2021 62,542 Thereafter 75,052 Total $ 389,031 bm NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 49 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED HIS Plan, continued Actuarial Assumptions. The total pension liability in the July 1, 2016, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Real Payroll Growth Salary Increases Municipal Bond Rate 2.60 percent 0.65 percent 3.25 percent, average, including inflation 2.85 percent Mortality rates were based on the Generational RP -2000 with Projected Scale BB. Because the HIS Plan is funded on a pay-as-you-go basis, no experience study has been completed for the Plan. Discount Rate. The discount rate used to measure the total HIS liability was reduced from 3.80 % to 2.85%. In general, the discount rate for calculating the total HIS liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the plan sponsor. The Bond Buyer General Obligation 20 -Bond Municipal Bond Index was adopted as the applicable municipal bond index. Sensitivity of the District's Proportionate Share of the Net HIS Liability to Changes in the Discount Rate. The following presents the District's proportionate share of the net HIS liability calculated using the discount rate of 2.85 percent, as well as what the District's proportionate share of the net HIS liability would be if it were calculated using a discount rate that is 1 -percentage -point lower (1.85 percent) or 1 -percentage -point higher (3.85 percent) than the current L.. rate: 1% Current 1% Decrease Discount Rate Increase (1.85%) (2.85%) (3.85%) District's proportionate share of the net HIS liability $ 2,878,748 $ 2,509,309 $ 2,202,695 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 50 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED HIS Plan, continued Pension Plan Fiduciary Net Position. Detailed information about the HIS plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other ,_. State Administered Comprehensive Annual Financial Report (FRS "CAFR") dated June 30, 2016. The FRS CAFR and actuarial reports may also be obtained by contacting the Division of Retirement at: Department of Management Services Division of Retirement Bureau of Research and Member Communications P.O. Box 9000 Tallahassee, FL 32315-9000 a- 850-488-5706 or toll free at 877-377-1737 http://www.dms.myflorida.com/workforce operations/retirement/publications Payables to the Pension Plan. At September 30, 2016, the District reported a payable of $0 for the outstanding amount of contributions to the HIS plan. FRS - Defined Contribution Pension Plan The SBA administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. —' As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. District employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the �-- Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.) as the FRS defined benefit plan. Contributions NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 51 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED FRS - Defined Contribution Pension Plan, continued are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits L of plan members. Allocations to the investment member's accounts during the 2015-16 fiscal year were as follows: Percent of Gross Salary* .� Class Employee Employer (1) Employer (3) Employer (4) Florida Retirement System, Regular 3.00 7.37 7.26 7.52 Florida Retirement System, Senior Management Service 3.00 21.14 21.43 21.77 Florida Retirement System, Special Risk 3.00 19.82 22.04 22.57 Deferred Retirement Option Program - Applicable to Members from All of the Above Classes 0.00 12.28 12.88 12.99 Florida Retirement System, Reemployed Retiree (2) (2) N/A N/A Florida Retirement System, Elected Official 3.00 43.24 42.27 42.77 Notes: (1) Employer rates include 1.26 percent for the postemployment health insurance subsidy. Also, employer rates, other than for DROP participants, include .04 percent for administrative costs of the Investment Plan. Rates for 7/1/14 - 6/30/15. (2) Contribution rates are dependent upon retirement class in which reemployed. (3) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also, employer rates, other than for DROP participants, include .04 percent for administrative costs for the Investment Plan. Rates for 7/1/15 - 6/30/16. (4) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also, employer rates, other than for DROP participants, include .06 percent for administrative costs for the Investment Plan. Rates for 7/1/16 - 6/30/17. ' As defined by the Plan. �- For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Nonvested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5 -year period, the employee will regain control over their account. If the employee does not return within the 5 year period, the employee will forfeit the accumulated account balance. For the fiscal year ended September 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the District. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 52 of 102 NOTES TO THE FINANCIAL STATEMENTS _ September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED FRS - Defined Contribution Pension Plan, continued After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for r.. retirement income. The District's Investment Plan pension expense included within the FRS expense totaled $96,319 for the year ended September 30, 2016. Payables to the Investment Plan. At September 30, 2016, the District reported a payable of $0 for the outstanding amount of contributions to the Plan. Plan 2 - Plan Descriution and Provisions - Firefiehters' Pension Trust Fund The following brief description of the North Collier Fire Control and Rescue District Firefighters' Pension Plan (originally known as the North Naples Firefighters' Pension Plan) (the "Plan") is provided for general information purposes only. The Plan's name changed effective January 1, 2015 with the District's merger. Participants should refer to the plan agreement for a more complete description of the Plan. On July 11, 1996, under the authority of Florida Statute 175 and Laws of Florida, Chapter 95-338, the District's Board of Commissioners passed Resolutions 96-004 and 96-005, providing for the establishment and funding of a single employer defined benefit retirement plan and trust for newly hired fire suppression personnel. The _ resolutions establish that certified firefighters hired on or after January 1, 1996 are to become participants in the District's Firefighters' Pension Trust ( FPT) Fund. The Plan is totally administered, including all investment management, by a third party administrator and the Plan's appointed Pension Board. L Effective October 1, 2011, employee participants were required to contribute 3% (similar to FRS) of compensation (an increase from .5% of compensation) per Resolution 11-031. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 53 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund, continued During the year ended September 30, 2015, the District adopted Governmental Accounting Standards Board Statement No. 68 "Accounting and Financial Reporting for Pensions" (GASB 68). As such, the Plan's beginning net position was restated and the net pension liability was recorded in the government -wide financial statements. During the years ended September 30, 2016, 2015, and 2014 there were employee contributions in the amount of $353,357, $283,205, and $263,115, respectively, to the Plan. The employer contributed 100% of its required contributions, as well as those required contributions of the participating firefighters (0.5% pick-up). The Plan provides for full-time firefighting personnel to become eligible to participate in the Plan immediately upon hire. Under District resolution 96-005, the District elected to pay the 0.5% (1% prior to December 9, 2004) employee required — contribution on behalf of the employee. Effective December 9, 2004, the employee contribution was reduced to 0.5% (employee pick up). Effective July 1, 2001 (per resolution 01-01), benefits under the Plan vest after six years of creditable service. Employees who elect normal retirement at or after age 55 with 6 years of creditable service, or 25 years of service regardless of age, are entitled to a retirement benefit. Effective October 1, 2011, required employee contributions increased to 3% of compensation. Employees may elect early retirement after 6 years of creditable service with a reduction in benefit not to exceed 3% for each year before normal retirement. The Plan also includes certain disability and death benefits. 4 .NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 54 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund, continued Contributions - Contributions to the Plan are derived from three sources: the plan's participants are required to contribute to the plan in the amount of 3% of their covered wages and pursuant to resolution 11 -03 1 the District has elected to increase the affected employees' salary by 0.5% (employer pick-up), State funds (fire [hazard] insurance premium tax per Florida Statute Chapter 175) and employer (remaining amount necessary to meet actuarial requirement). For the period from January 1, 1996 through September 30, 1996, no employer contributions were required. Employer contributions were required beginning October 1, 1996. The L State contributions under Chapter 175 began in June 1997. This revenue is based on property fire insurance premiums paid within the District and is applied up to an approved "frozen" limit of $1,746,716. The District (employer) is required to fund ` the difference each year between the total contributions from all other sources for the year and the total cost for the year pursuant to the most recent actuarial valuation of r.. the Plan. The total cost for any year equals total normal cost plus the additional amounts sufficient to amortize the unfunded past service liability over a 30 year period commencing the first year of the Plan's inception. Pursuant to the actuarial study dated October 1, 2016 for the year ended September 30, 2016, the District's contribution (District only) requirement was 13% of the actuarially determined covered payroll. Actual District contributions to the Plan for the years ended September 30, 2016 and 2015, were $1,750,382 and $1,105,545, respectively. The State contributions for the years ended September 30, 2016 asnd 2015 were $1,411,547 and $1,487,600, respectively. Employees contributed (3%) ` $353,357 to the Plan for the year ended September 30, 2016. At September 30, 2016, $58,529,518 the Plan's total net position was restricted for retiree benefits. Payables to the Pension Plan. At September 30, 2016, the District reported a payable of $221,724 for the outstanding amount of contributions payable to the pension plan. '— Pension Benefits - Effective July 1, 2001, employees with 6 or more years of service are entitled to monthly pension benefits, beginning at the earlier of age 55 with `, 6 years of credited service or 25 years credited service regardless of age. Benefit is WW �— NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 55 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund, continued equal to 3.53% of their average final compensation (AFC) times credited service prior to October 1, 2013 plus 3% of average final compensation times credited service on and after October 1, 2013. AFC means the average of the highest five (5) _ years within the last ten (10) years of service. Maximum benefit is 100% of AFC. The plan permits early retirement with 6 years (10 years prior ro July 2, 200 1) of credited service. Employees may elect to receive their pension benefits in the form of a 10 year certain and life annuity. If employees terminate before rendering 6 years of credited service, they forfeit the right to receive the portion of their accumulated plan benefits. All retirement benefits are annually increased for cost of living at 3%. Death and Disability Benefits - Upon the death of any vested member, whether or not still in active employment, a survivor benefit is payable to the beneficiary starting when the member would have reached retirement age. The _ benefit is equal to the vested pension benefit and is payable for 10 years. A spousal and/or minor benefit is provided for line of duty death equal to a minimum of one half of the members salary for life (spouse) or age 18 (child). r.. Employees who become totally disabled with at least 8 years of credited service receive the greater of the accrued pension benefit or 25% of AFC, if non -service incurred, or 42% of AFC, if active service incurred. Effective December 9, 2004, the active service related benefit was increased to 65%. Supplemental Benefits - Effective December 31, 2004, each service and disability retiree and their joint pensioners or beneficiaries and vested terminated members shall receive a supplemental payment to be used as a health insurance subsidy payment. The amount shall be five dollars ($5) for each full year of credited service for life. The maximum monthly supplement is one hundred fifty dollars ($150) and the minimum thirty dollars ($30). r.. DROP - Effective December 12, 2013, Resolution 13-034 was adopted, which L, established a Deferred Retirement Option Plan ("DROP"). An "eligible participant" of the pension plan, which is defined as an individual currently on full-time work status, may elect to participate in the DROP on the first day of the month coincident with or NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 56 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund, ` continued next following either, attainment of age fifty-five (5 5) and the completion of ten (10) years of credited service, or the completion of twenty-five (25) years of credited service, which date shall constitute the "initial date of eligibility". An eligible participant electing to participate in DROP must complete and execute such forms as may be required by the District and supplied by the Board of Trustees not less than thirty (30) days prior to entering the DROP. The forms shall include, but not limited to, an irrevocable letter of resignation effective no later than the conclusion of the maximum period of DROP participation. Election into the DROP is irrevocable ` provided there shall be no minimum period of participation; however in the event of a voluntary termination prior to the maximum period, any DROP participant termination prior to such maximum DROP period shall submit a written notice at least thirty (30) ` days prior to such early termination of DROP participation. An eligible participant may elect to participate in the DROP only once. After commencement of participation in DROP, a participant shall no longer earn, accrue or ` purchase additional service credits towards retirement benefits or later enhancements to the firefighters' pension plan. Upon the effective date of an eligible participant's participation in DROP, all contributions by and on behalf of the participant to the plan shall be discontinued. For all plan purposes, service and vesting credits of an eligible participant electing DROP shall be fixed as of the effective date of commencement of DROP participation. Any services as a firefighter after entry into DROP shall not be used for calculation or determination of benefits payable by the pension plan. The average final compensation of a participant, as defined in this plan shall be determined as of the effective date of commencement of DROP participation and other subsequent earnings shall not be used for calculation or determination of benefits payable by the ` pension plan. Income Recognition - Interest income is recorded on the accrual basis. Investments are reported at market value. Short-term investments are reported at cost, which approximates market value. Actuarial Present Value of Accumulated Plan Benefits - Accumulated plan benefits are those future periodic payments, including lump -sum distributions, that im- NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 57 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund, continued are attributable under the Plan's provisions to the service employees have rendered. Accumulated plan benefits include benefits expected to be paid to (a) retired or terminated employees or their beneficiaries, (b) beneficiaries of employees who have died, and (c) present employees or their beneficiaries. Benefits under the Plan are 6m based on employees' age at entry to the Plan and are based upon the current starting salary for firefighters at entry level. Benefits payable under all circumstances, �- retirement, death, disability and termination of employment, are included, to the extent they are deemed attributable to employee service rendered to the valuation date. The actuarial present value of accumulated plan benefits is determined by an actuary 6M and is the amount that results from applying actuarial assumptions to adjust the accumulated plan benefits to reflect the time value of money (through discounts for interest) and the. probability of payment (by means of decrements such as for death, disability, withdrawal, or retirement) between the valuation date and the expected date of payment. The significant actuarial assumptions used in the valuations as of ` October 1, 2016 were (a) life expectancy of participants - RP 2000 (combined healthy, sex distinct) Mortality Table was used, (b) retirement age assumptions (the assumed average retirement age was 55), and (c) annual investment return of 7.5% (net of fees). The actuarial valuation reflected assumed average rates of return of ` 7.5% (net of fees). The foregoing actuarial assumptions are based on the presumption that the Plan will continue. If the Plan terminated, different actuarial assumptions and other factors might be applicable in determining the actuarial present value of accumulated plan benefits. `. Payment of Benefits - Benefit payments to participants are recorded upon distribution. The District contributed 100% of the required contributions. A summary of certain Plan details and trend information is included below. A copy of the Plan and Plan audit as of and for September 30, 2016 can be obtained by writing to the District at 1885 Veterans Park Drive, Naples, Florida 34109-0492, or by calling (239) 597-3222. The following is a summary of the Single -Employer Defined Benefit Pension Plan (Florida Statutes Chapter #175), including funding policies, contribution methods, benefit provisions and trend information: l»>7 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 58 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund, continued L Year established and governing authority r.. Governing body Determination of contribution requirements: 6W Employer (District) Plan members L` Net -of -Fees Investment Return Annual Salary Increase Firefighters' Pension Trust Fund - Plan 2 District Resolution 96- 004 (July 11, 1996) Board of Trustees of Plan Actuarially determined Amount required in excess of Member and applicable State contributions needed in order to pay current costs and amortize any unfunded past service cost over 30 years 3.0% of covered payroll Employer 6 years Graduated Scale based on Credited Service (see below) Cost of living increase of 3% each year Earlier of 55 with 6 years of credited service or 25 years credited service regardless of age Yes Yes Yes 2.5% Entry Age Normal. Prior valuations utilized Frozen Entry Age method Reduced from 8.00% to 7.50% flat 6% per year to graduated scale (9% per year for first 10 years & 3% per year for 10+ years) Funding of administrative costs: r.. Period required to vest Annual salary increase bum Post retirement benefit increase Eligibility for distribution bum (Normal retirement) Provisions for: L Disability benefits Death benefits bum Early retirement Assumed inflation L. Actuarial assumption/method changes since prior valuation: Actuarial Cost Method L` Net -of -Fees Investment Return Annual Salary Increase Firefighters' Pension Trust Fund - Plan 2 District Resolution 96- 004 (July 11, 1996) Board of Trustees of Plan Actuarially determined Amount required in excess of Member and applicable State contributions needed in order to pay current costs and amortize any unfunded past service cost over 30 years 3.0% of covered payroll Employer 6 years Graduated Scale based on Credited Service (see below) Cost of living increase of 3% each year Earlier of 55 with 6 years of credited service or 25 years credited service regardless of age Yes Yes Yes 2.5% Entry Age Normal. Prior valuations utilized Frozen Entry Age method Reduced from 8.00% to 7.50% flat 6% per year to graduated scale (9% per year for first 10 years & 3% per year for 10+ years) NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 59 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund, continued Net Pension Liability of the Fund - The components of the net pension liability of the District at September 30, 2016 were as follows: Amount Total pension liability $ 61,707,055 Plan fiduciary net position (58,512,948) District's net pension liability $ 3,194,107 Plan fiduciary net position as a percentage of the L total pension liability 94.85% h.. The total pension liability was determined by an actuarial valuation as of September 30, 2016 using certain actuarial assumptions, the most significant of which were 7.5 percent for the investment rate of return (net of fees), 3.0-9.0 percent for projected salary increases and 2.5 percent for inflation. L Mortality rates were based on the RP -2000 Combined Healthy Mortality Table, Sex Distinct. Disabled lives are set forward five (5) years. The Plan's policy with regards to the allocation of invested assets is established and may be amended by the Pension Board. Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully funded status for the benefits provided through the Plan. The investment policy was last amended in February 2014. The following table summarizes the Board's adopted allocation policy and the long-term expected real rates of return for each major asset class: Long -Term _ Target Actual Expected Real Asset Class Allocation Allocation Rate of Return* Domestic equities 35-55% 40% 7.5% International equities 10-25% 14% 8.5% Fixed income 20-40% 22% 2.5% r.. International fixed income 0-10% 6% 3.5% Real estate 0-15% 10% 4.5% _ Cash and cash equivalents minimal 8% not available * annual arithmetic return 100% 100% .. F NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED Page 60 of 102 Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund, r.. continued The long-term expected rate of return on Plan assets was determined using a building-block ` method in which best -estimate ranges of expected future real rates of return (expected returns, net of Plan investment expense and inflation) are developed for each major asset — class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Discount Rate. The discount rate used to measure the total pension liability was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that plan participant contributions will be made at the current contribution rate and that District ` contributions will be made at rates equal to the difference between actuarially determined contribution rates and the participant rate. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of ` current plan participants. Therefore, the long-term expected rate of return on Plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Rate of Return Sensitivity. The sensitivity of the net pension liability to changes in the discount rate was measured as follows. The net pension liability of the District was calculated using the discount rate of 7.5 percent. It was also calculated using a discount rate that was 1 -percentage -point lower (6.5 percent) and 1 -percentage -point higher (8.5 percent) than the current rate: 1% Current 1% Decrease Discount Rate Increase 6.5% 7.5% 8.5% Net pension liability (asset) $ 13,533,628 $ 3,194,107 $ (5,148,443) Deferred Inflows/Outflows of Resources Related to Pensions On September 30, 2016, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: a NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 61 of 102 NOTES TO THE FINANCIAL STATEMENTS a September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund, �• continued Deferred Outflows Deferred Inflows of Resources of Resources a ' Differences between expected and actual experience $ - $ 1,105,754 �. Change of assumptions - 2,478,715 Net difference between projected and actual earnings on plan investments 3,147,455 - ` Contributions subsequent to the measurement date - - a $ 3,147,455 $ 3,584,469 The deferred outflows of resources related to the pension, resulting from District contributions subsequent to the measurement date, will be recognized as a reduction on the net pension liability in the fiscal year ended September 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the pension will be recognized in pension expense as follows: Fiscal Years Ending September 30 Amount 2017 $ 312,752 _ 2018 312,751 2019 312,752 2020 416,965 ` 2021 (448,059) Thereafter (1,344,175) �• Total $ (437,014) Memberships of the Plan consisted of the following at October 1, 2016: a Firefighters' Pension Trust Fund - Plan 2 Active plan members 147 Inactive plan members or beneficiaries currently receiving benefits 12 Inactive plan members entitled to but not yet receiving benefits 8 Total 167 Number of participating employers 1 Number of participating state agencies 1 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 62 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 The Plan assets are legally reserved for the payment of the respective plan member benefits within the Plan. There are no assets legally restricted for plan benefits other than these assets within the Plan. The Firefighters' Pension Trust Fund held certain �- investments at year end. NOTE G - RETIREMENT PLANS, CONTINUED Plan 2 - Plan Description and Provisions - Fireflghters' Pension Trust Fund, — continued The following is a schedule of changes in net pension liability for the fiscal year ended September 30, 2016: L Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (Asset) — Balances at September 30, 2015 $ 51,541,750 $ 51,534,195 $ 7,555 Changes for the fiscal year: Service cost 3,170,917 - 3,170,917 Interest 4,092,811 - 4,092,811 Differences between expected and _ actual experience 1,243,203 - 1,243,203 Changes of assumptions 1,901,688 - 1,901,688 Changein excess state money (12,267) - (12,267) Contributions - Employer - 1,735,437 (1,735,437) Contributions - State - 11411,547 (1,411,547) Contributions - Employee - 356,709 (356,709) Contributions - Buy Back 28,125 28,125 Net investment income - 3,793,956 (3,793,956) Benefit payments, including refunds of employee contributions (259,172) (259,172) - Administrative expense - (87,849) 87,849 Net changes 10,165,305 6,978,753 3,186,552 Balances at September 30, 2016 $ 61,707,055 $ 58,512,948 $ 3,194,107 Annual Pension Cost, Net Pension Oblieation and Reserves Current year annual pension costs for the Firefighters' Pension Trust Fund are shown in the trend information provided. The Firefighters' Pension Trust Fund had a net unfunded actuarial accrued liability at October 1, 2016 of $3,194,107. The Plan assets are legally reserved for the payment of the respective plan member benefits within the Plan. There are no assets legally restricted for plan benefits other than these assets within the Plan. The Firefighters' Pension Trust Fund held certain �- investments at year end. ME NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 63 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED ** reflected by actuary as Plan Fiduciary Net Position Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund, continued Trend Information Firefighters' Pension Trust Fund L Total (1) Required Actual Contributions Net Annual District State State (2) Pension Fiscal Pension Required Required Frozen Actual Percentage Obligation Year Contribution Contribution Contribution Contribution Contribution Contributed (NPO) 2016 $ 3,146,984 $ 1,735,437 $ 1,411,547 $1,746,716 $ 3,146,984 100% - 2015 $ 2,594,733 $ 1,107,133 $ 1,487,600 $1,746,716 $ 2,594,733 100% - 2014 $ 2,896,024 $ 1,518,926 $ 1,377,098 $1,746,716 $ 2,896,024 100% - 2013 $ 3,386,733 $ 2,127,828 $ 1,314,064 $1,746,716 $ 3,441,892 102% - 2012 $ 3,283,811 $ 2,166,246 $ 1,214,214 $1,746,716 $ 3,380,454 103% - r.. 2011 $ 3,473,598 $ 2,333,799 $ 1,139,799 $1,746,716 $ 3,626,125 104% - 2010 $ 3,190,997 $ 2,170,443 $ 1,020,554 $1,746,716 $ 3,200,901 100% - 2009 $ 2,796,158 $ 1,756,228 $ 1,039,931 $1,746,716 $ 3,079,738 110% - .� 2008 $ 2,211,933 $ 1,009,715 $ 1,485,798 $1,485,798 $ 2,495,513 113% - 2007 $ 2,132,248 $ 2,019,430 $ 1,390,449 $ 112,818 $ 2,132,248 100% - -� (1) The District considers its annual pension cost to be its actuarially determined required annual pension contribution including the employer and state contribution. Fy 2016 required contribution reduced by $12,267 excess State money reserve. Pension Trust Required Supplementary Information Schedule of Funding Progress Firefighters' Pension Plan: Unfunded Actuarial Actuarial Actuarial UAAL as _ Value of Accrued Accrued Annual a % of Actuarial Assets ** Liability (AAL) Liability Funded Covered Covered Valuation (AVA) -Entry Age (UAAL) Ratio Payroll Payroll r.. Date (a) (b) (b -a) (a/b) (c) -a /c 10/01/16 $58,512,948 $61,707,055 $ 3,194,107 94.8% $11,890,295 26.9% 10/01/15 $51,534,195 $51,541,750 $ 7,555 100.0% $ 9,671,942 0.1% 10/01/14 $49,189,571 $47,467,581 $(1,721,990) 103.6% $ 8,770,495 -19.6% 10/01/13 $42,143,137 $41,366,768 $ (776,369) 101.9% $ 9,092,235 -8.5% L 10/01/12 $33,983,491 $33,924,855 $ (58,636) 100.2% $ 8,254,150 -0.7% 10/01/11 $26,196,164 $26,153,965 $ (42,199) 100.2% $ 8,291,830 -0.5% 10/01/10 $22,990,534 $23,284,830 $ 294,296 98.7% $ 7,737,940 3.8% 10/01/09 $17,833,111 $18,108,267 $ 275,156 98.5% $ 7,522,834 3.7% 10/01/08 $16,719,426 $16,890,153 $ 170,727 99.0% $ 7,082,194 2.4% 10/01/07 $12,904,948 $12,884,785 $ (20,163) 100.2% $ 7,276,954 -0.3% ** reflected by actuary as Plan Fiduciary Net Position NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED Page 64 of 102 Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund, — continued Firefighters' Pension Trust Fund Valuation date 10/01/13 Actuarial cost method Entry Age Normal Amortization method Level dollar, closed Mortality table RP2000 Combined Healthy Remaining amortization period 27 years (as of 10/1/13) Actuarial asset valuation method 5 Year Smoothed Market Actuarial assumptions: Investment rate 7.5% (net of fees) ` Projected salary increase Graduated based on Service (9% per year for first 10 years & (3% per year for 10 or more years) Inflation 2.5% Post retirement cost of living adjustment 3% Changes of Assumptions For the measurement date of September 30, 2016, as a result of Chapter 2015-157, L Laws of Florida, the assumed rates of mortality were changed to the assumptions used by the Florida Retirement System for special risk employees. The inflation assumption rate was lowered from 3.00% to 2.50%, matching the long-term inflation assumption utilized by the Plan's investment consultant. For measurement date September 30, 2015, amounts reported as changes of 1� assumptions were resulted from: 1. The Actuarial Cost Method is changed from the Frozen Entry Age Actuarial Cost ` Method to the Entry Age Normal (level percentage of pay) Cost Method. This method change was approved by the Board of Trustees at the June 18, 2015 meeting. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 65 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE G - RETIREMENT PLANS, CONTINUED k3sss Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund, continued ` Changes of Assumptions, continued 2. Assumption Changes a. The net -of -fees investment return assumption was lowered from 8.00% to 7.50%. ` This assumption was approved by the Board of Trustees and the June 19, 2015 meeting. b. The salary assumption was changed from flat 6% per year to a graduated scale based on Credited Service. The new assumption is 9% per year for the first 10 years, ` followed by 3% per year for 10 or more years of Credited Service. This assumption was approved by the Board of Trustees at the June 18, 2015 meeting, based on Plan experience for the period October 1, 2004 through September 30, 2013. c. A final salary load assumption, based on lump sum accruals cashed in at the time of retirement or termination, has been implemented due to passage of Resolution 16-008. L. The assumption is based on individual data provided by the Plan sponsor for all active Members. Plan 3 - Plan Description and Provisions - 401(a) The Board of Fire Commissioners established the 401(a) Plan for the general employees and elected officials who are ineligible to participate in the Florida Retirement System. The Plan was effective on January 1, 2013. At September 30, �.. 2016, the Plan had four (4) active participants. The Plan allows for employer contributions. Amounts contributed by the employer ` correspond to the percentage of contributions by class, established for participants of the Florida Retirement System. Employee contributions are prohibited. Employer contributions are 100% vested after completion of one year of service. A year of service is based on an employee completing at least 1,000 hours of service during a plan year. ` Total District contributions to the Plan for the year ended September 30, 2016 were $1,103. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 66 of 102 NOTES TO THE FINANCIAL STATEMENTS s September 30, 2016 NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB) The District formally established two (2) OPEB Plans to provide its retirees the opportunity to obtain insurance (health and life) benefits. The year ended September 30, 2010, was the District's transition year. As such, the District implemented GASB No. 45 on a prospective basis. All retired full-time employees are eligible for OPEB benefits if actively employed by the District immediately before retirement. As such, active employees with at least twenty five (25) years of service as of September 30, 2010 were allowed to elect to remain in the Defined Benefit Plan or to enter the Post Employment Health Plan (PEHP), a defined contribution plan. All retirees and Early Retirement Incentive Program (ERIP) participants, who were eligible, remained in the L Defined Benefit Plan. All other active employees at that time, September 30, 2010, as well as future employees entered the PERP. The benefits are provided both with and without contractual or labor agreements. The benefits may require contribution from the retirees, depending on certain specified criteria and, in particular, length of creditable employment. The District finances the benefits on a pay-as-you-go basis and recognizes expenditures at the time the premiums are due for both Plans. As a result of the merger, five (5) employees originally from Big Corkscrew Island �— Fire Control and Rescue District joined the Plan. bm Defined Benefit Plan Specifically, the Defined Benefit Plan provides that the District will pay a portion of medical and dental premiums for retirees depending on their years of credited service starting with the completion of fifteen (15) years of credited service. As such, the District pays 50% of the employee's premium and 25% of the spouse's premium at completion of 15 years of service progressing to 100% of the employee's premium and 50% of the spouse's premium upon completion of 25 years of service. The District also pays the premium associated with a $5,000 life insurance benefit. During fiscal years 2009 and 2010, the District offered two (2) separate Early Retirement Incentive Programs (ERIP) to a number of active employees. A portion of the programs includes full payment of premiums associated with medical, dental, vision and life insurance coverage, including dependent coverage for a period of 3 years. After the 3 year period ends, the ERIP participants receive the Defined In— b. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 67 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Defined Benefit Plan, continued Benefit Plan benefits they had been eligible for at termination. During the year ended September 30, 2014, the District paid the final amounts due on the ERIP Plans. Note that the projected premiums for the dental and life benefits are assumed to cover the entire cost of the program. i Post Employment Health Plan (PERP) The PEHP is a defined contribution plan administered by the District. L All employees who did not elect to remain in the Defined Benefit Plan, and all future active employees are participants in the PEHP. rm Originally participants in the PEHP had $7,000 deposited on their behalf into a trust rm account on the 20th anniversary of their date of hire and on each subsequent anniversary. Additionally, those participants having over 20 years of credited service at their date of retirement also received a $30,000 deposit on their behalf at date of `" separation. Effective October 1, 2012, the Plan was changed to limit District total contributions to $50,000 per employee. Effective October 1, 2015, participants in the PEHP will have $2,500 deposited into 6. a trust account following the 5th anniversary of their date of hire and on each subsequent year. Additionally, those participants having over 20 years of credited service at their date of retirement will receive a maximum contribution ranging from 6M $37,000 to $50,000 depending on length of service. The PEHP is designed to offer similar benefits to those offered under the Defined Benefit Plan. The District, as part of the PEHP, entered a group variable annuity contract. As such, the PEHP Plan's asset custodian and third party administrator is the insurance �.. company through which the annuity is contracted. General - Funding Poli�qy The District paid $216,920 for retiree's and ERIP participants' health care premiums r.. as part of the Defined Benefit Plan on a pay-as-you-go basis for the year ended September 30, 2016. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 Page 68 of 102 NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED General - Funding Policy, continued The District also contributed $459,500 to the PEHP Plan for the year ended September 30, 2016. No separate trust has been established for either Plan. No separate financial statement is issued for either OPEB Plan. All required disclosures are presented herein. The District obtained an actuarial valuation for its OPEB Plans to measure the current year's subsidies and project these subsidies into the future, making an allocation of that cost to different years. The following schedule of funding progress presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Schedule of Fundiniz Progress - Defined Benefit Plan Expected Unfunded Year Actuarial (2) Actuarial Cash UAAL as a (1) Value of Actuarial Accrued Annual Percentage of Actuarial Assets Accrued Liability Funded Covered Covered Valuation (AVA) Liability (AAL) (UAAL) Ratio Payroll Payroll Date * (a) (b) (b -a) (a/b) (c) (b-a)/c 01/01/15 $ - $ 10,342,305 $10,342,305 0.0% $ 13,652,782 75.8% 10/01/13 $ - $ 3,477,741 $ 3,477,741 0.0% $ 328,225 1059.6% 10/01/12 $ - $ 3,343,982 $ 3,343,982 0.0% $ 1,057,211 316.3% 10/01/11 $ - $ 6,882,021 $ 6,882,021 0.0% $ 1,057,211 651.0% (1) - Initial actuarial valuation dated 10/1/09 (transition year) $ 1,208,932 (2) - The AAL reduction in 2012 was in part due to a change in certain actuarial assumptions but substantially due to consideration given to the fact the District is funding the PERP. Schedule of Contributions from Employer - Three Year Trend - Defined Benefit Plan * - Most recent actuarial valuation was 1/1/2015 Note: Actuarial projection for the PEHP is N/A Expected Percentage of Year Annual Cash Annual OPEB Net OPEB Ended OPEB Cost Payment Cost Obligation 09/30/16 * * * $ 3,012,601 09/30/15 $1,020,150 $ 358,162 35.1% $ 2,217,063 09/30/14 $ 508,598 $ 78,065 15.3% $ 1,555,292 09/30/13 $ 503,266 $ 78,335 15.6% $ 1,208,932 * - Most recent actuarial valuation was 1/1/2015 Note: Actuarial projection for the PEHP is N/A NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 69 of 102 NOTES TO THE FINANCIAL STATEMENTS um September 30, 2016 ` NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Annual OPEB Cost and Net OPEB Obligation The annual OPEB cost is the amount that was expensed in the current year. Since the District's Defined Benefit Plan is unfunded, the offset to that expense comes from subsidies paid on behalf of the current retirees and their dependents for the current year. This offset L is called the expected cash payment. The cumulative difference between the annual OPEB cost for the year and the expected cash payment is called the net OPEB obligation (NOO). The net OPEB obligation for the North Naples Service Delivery Area and Big Corkscrew Island Service Delivery Area as of September 30, 2016 is as follows: Amount Net OPEB obligation - NN $ 2,546,398 _ Net OPEB obligation - BCI 466,203 $ 3,012,601 r.. The Net OPEB obligation is reflected as a liability in the Statement of Net Position. The following table shows the components of the District's annual OPEB cost for the year and the net OPEB obligation. ._. Year ended September 30, 2016 Defined r Benefit Plan PEHP Annual required contribution (ARC) $ 1,276,880 $ 459,500 bm Adjustment to ARC (128,212) - Plus interest on NOO 88,683 - `` Annual OPEB cost 1,237,351 459,500 Annual Net contribution made (441,813) (459,500) AN= Expected cash payment 441,813 (459,500) Yearly change in OPEB obligation 795,538 - Net OPEB obligation - beginning of year 2,217,063 ` Net OPEB obligation - end of year $ 3,012,601 $ - fAm k. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 70 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and healthcare cost trend. Amounts determined regarding the funding status of a plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plans (the plans as understood by the employer and plan members) and include the types of benefits provided at the time of the valuation and the historical pattern of sharing of benefit costs between the employer and plan members. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial valuation of assets, consistent with the long-term perspective of the calculations. In the October 1, 2015 actuarial valuation, the Projected Unit Credit Unit cost method with linear pro -ration to assumed benefit commencement was used. The L. actuarial assumptions included a 4.0 percent investment rate of return and an inflation assumption of 3.0 percent with an annual salary scale of 6.0 percent. Since there are no invested plan assets held in trust to finance the Defined Benefit Plan - OPEB obligations, the investment return discount rate is the long-term expectation of investment return on assets held in District funds pursuant to its investment policy. The assumptions also included an annual healthcare cost trend based on a graded schedule beginning with 8.0 percent annually down by 0.5 percent to an ultimate rate of 4.5 percent in fiscal 2020. The unfunded actuarial accrued liability is being amortized over a closed period of 30 years as a level dollar amount. The funding method is the projected unit credit method as noted above. NOTE I - RISK MANAGEMENT During the year ended September 30, 2016, the District provided health benefits as follows: NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 71 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE I - RISK MANAGEMENT, CONTINUED The District continued the use of a high deductible health plan offered to employees and retirees of the North Naples Service Delivery Area. The District does not offer vision coverage to the employees of the North Naples Service Delivery Area. The District �. also established a HSA plan for its employees of the North Naples Service Delivery Area. The District contributes $5,000 for those eligible participants who have met the family deductible and $3,000 for those eligible participants who have to meet the the individual deductible to the HSA plan annually. The District also continued the use of the health plan offered to the employees of the Big Corkscrew Service Delivery Area. The District also established an HSA plan for _ the employees of the Big Corkscrew Service Delivery Area. The District contributes $1,500 per eligible participant to the plan. Participants in both Service Delivery Areas may also elect to contribute to the respective plan on a pre-tax basis. HSA amounts that are not utilized by the year end are carried over and are the property of the participant per IRS regulation. HSA contributions for the year ended September 30, 2016 were $1,029,482. As of January 1, 2016, all District employees were offered health coverage, and the •— related HSA contribution under the plan was established for the North Naples Service Delivery Area employees. The District incurred $5,258,170 in claims, third party administration costs, premiums and reinsurance premiums including HSA contributions and workers compensation insurance during the year ended September 30, 2016, for the self-insurance and fully -funded insurance programs. L It is the policy of the District to purchase third party commercial insurance for other remaining forms of potential risks to which it is exposed. The District's risk �.. management activities are reported in the General Fund. No accrual has been recorded for claims and incidents not reported to the insurer. The District had no significant reductions in insurance coverage from the prior year. Reported claims have not exceeded the insurance coverage for the years ended September 30, 2011 through September 30, 2016. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 72 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 NOTE J - PRbw OPERTY TAXES L Property taxes are levied after formal adoption of the District's budget and become due and payable on November 1 of each year and are delinquent on April 1 of the following year. Discounts on property taxes are allowed for payments made prior to — the April 1 delinquent date. Tax certificates are sold to the public for the full amount of any unpaid taxes and must be sold not later than June 1 of each year. The billing, collection, and related record keeping of all property taxes is performed for the District by the Collier County Tax Collector. No accrual for the property tax levy becoming due in November 2016 is included in the accompanying basic financial �-- statements, since such taxes are collected to finance expenditures of the subsequent period. Procedures for collecting delinquent taxes, including applicable tax certificate sales and tax deed sales, are provided for by Florida Statutes. The enforceable lien date is approximately two years after taxes become delinquent and occurs only upon request of a holder of a delinquent tax certificate. As of September 30, 2016, $217,763 was _ recorded in the General Fund and was due from the Collier County Tax Collector to the District for ad valorem taxes and excess fees, and interest. L Important dates in the property tax cycle are as follows: Assessment roll certified July 1 Millage resolution approved No later than 93 days following certification of assessment roll. Taxes due and payable (Levy date) November/with various discount provisions through March 31. — Property taxes payable - maximum discount (4 percent) 30 days after levy date Beginning of fiscal year for which taxes have been levied October 1 L Due date March 31 Taxes become delinquent (lien date) April 1 — Tax certificates sold by the Collier County Tax Collector Prior to June 1 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 73 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 ` NOTE J - PROPERTY TAXES, CONTINUED For the year ended September 30, 2016, the Board of Commissioners of the District levied ad valorem taxes at a millage rate of $.95 per $1,000 (.95 mills) of the 2015 net taxable value of real property located within the North Naples Service Delivery Area. For the year ended September 30, 2016, the Board of Commissioners of the District levied ad valorem taxes at a millage rate of $3.45 per $1,000 (3.45 mills) of the 2015 net taxable value of real property located within the Big Corkscrew Island Service Delivery Area. NOTE K - IMPACT FEE FUND ACTIVITY During the year ended September 30, 2016, the Impact Fee Fund had the following activity: NN BCI Unearned revenue, October 1, 2015 $ - $ 1,062,309 Impact fee receipts 1,923,602 750,707 _ Interest and other income 607 18 Operating fees - collection fees (28,848) (11,231) Loan interest - (17,250) Principal reduction - (57,500) Capital outlay (80,670) (924,060) Transfers in (out) (1,375,011) - Unearned revenue, September 30, 2016 $ 439,680 $ 802,993 L -' NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 74 of 102 NOTES TO THE FINANCIAL STATEMENTS �• September 30, 2016 im- Restricted Fund Balance/Net Position - Inspection Fee Fund Inspection Fee Fund Total Amount $ 4,943 NOTE L - FUND BALANCE/NET POSITION ALLOCATIONS Fund Balance/Net Position were allocated for the following purposes at September 30, 2016: r,., NN BCI Total Nonspendable - General Fund Amount Amount Amount Nonspendable fund balance - General Fund prepaid expenses $ 318,836 $ - $ 318,836 NN BCI Total Assigned fund balance - General Fund Amount Amount Amount General Fund - Expenses - Oct - Dec $ 6,500,000 $ 750,000 $ 7,250,000 General Fund - Minimum operating reserve per policy 2,600,000 500,000 3,100,000 General Fund - Health insurance claim reserve 200,000 - 200,000 General Fund - ALS equipment 30,000 100,000 130,000 General Fund - Protective gear 100,000 15,000 115,000 General Fund - Vehicle replacement 250,000 100,000 350,000 v General Fund - Fire equipment 200,000 100,000 300,000 General Fund - Fire apparatus 294,866 150,000 444,866 bw General Fund - Fire prevention bureau 883,839 - 883,839 General Fund - Station improvements & equipment 52,484 21,760 74,244 General Fund - Station #46 improvements 20,900 - 20,900 Emergency Cash Reserve - 94,905 94,905 Total General Fund $ 11,132,089 $ 1,831,665 $ 12,963,754 NN BCI Total Unassigned - General Fund Amount Amount Amount General Fund $ - $ - $ - im- Restricted Fund Balance/Net Position - Inspection Fee Fund Inspection Fee Fund Total Amount $ 4,943 #a. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 75 of 102 NOTES TO THE FINANCIAL STATEMENTS September 30, 2016 ` NOTE M - COMMITMENTS AND CONTINGENCIES The District is involved from time to time in certain routine litigation, the substance of which either as liabilities or recoveries, would not materially affect the financial position of the District. Although the final outcome of the lawsuits, assertions, and claims or the exact amount of costs and/or potential recovery is not presently determinable, in the opinion of the District's legal counsel, the resolution of these matters will not have a materially adverse affect on the financial condition of the District. As a general policy, the District plans to vigorously contest any such matters. In December 2015, the Board approved a capital lease in the amount of $2,400,000 r for the purchase of three (3) new fire trucks and one (1) new ladder truck. The vehicles were received subsequent to year end. The lease requires ten (10) annual payments of approximately $280,000 including interest at 2.82% beginning on November 15, 2016. im— COMBINING FINANCIAL STATEMENTS BY SERVICE DELIVERY AREA s,." bm NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 76 of 102 COMBINING BALANCE SHEET - GENERAL FUND - BY SERVICE L- DELIVERY AREA September 30, 2016 60 North Naples Big Corkscrew Total Service Island Service General L Delivery Area Delivery Area Eliminations Fund ASSETS Cash and cash equivalents $ 10,463,592 $ 1,849,725 $ - $ 12,313,317 L Restricted cash and cash equivalents - - - Investments - 1,300,000 - 1,300,000 Due from other governments 245,676 40,590 - 286,266 Due from other funds 1,776,302 7,205 (1,375,115) 408,392 r.. Other receivables 229,129 2,055 - 231,184 Prepaid expenses 318,836 - - 318,836 TOTAL ASSETS $ 13,033,535 $ 3,199,575 $ (I,375,115) $ 14,857,995 L LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable and accrued expenses $ 1,566,510 $ $ - $ 1,566,510 Retainage payable - - - - Due to other funds 8,600 1,367,910 (1,375,115) 1,395 Contract deposits 7,500 - 7,500 w. Unearned revenue - - - - TOTAL LIABILITIES 1,582,610 1,367,910 (1,375,115) 1,575,405 FUND BALANCE Nonspendable 318,836 - - 318,836 Restricted - - - - �" Assigned 11,132,089 1,831,665 - 12,963,754 Unassigned - - - TOTAL FUND BALANCE 11,450,925 1,831,665 - 13,282,590 L■ TOTAL LIABILITIES AND FUND BALANCE $ 13,033,535 $ 3,199,575 $ (1,375,115) $ 14,857,995 bWE b.. bm The accompanying notes are an integral part of this statement. The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 77 of 102 COMBINING STATEMENT OF REVENUES, EXPENDITURES �. AND CHANGES IN FUND BALANCE - GENERAL FUND - BY SERVICE DELIVERY AREA Year Ended September 30, 2016 General Fund North Naples Big Corkscrew Total Service Island Service General Delivery Area Delivery Area Fund r.. REVENUES Ad Valorem taxes $ 24,152,970 $ 3,962,498 $ 28,115,468 L Intergovernmental revenue: State firefighter supplement 57,682 - 57,682 Federal grants 531,294 82,777 614,071 Charges for services 476,046 29,810 505,856 Miscellaneous: Interest 52,579 454 53,033 Other 1,301,304 18,658 1,319,962 TOTAL REVENUES 26,571,875 4,094,197 30,666,072 L EXPENDITURES Current Public safety — Personnel services 23,218,672 3,949,439 27,168,111 Operating expenditures 4,101,293 639,002 4,740,295 Capital outlay 1,386,336 215,994 1,602,330 Debt service: Principal reduction 30,001 4,674 34,675 Interest and fiscal charges - - - Reserves - - - TOTAL EXPENDITURES 28,736,302 4,809,109 33,545,411 L EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (2,164,427) (714,9I2) (2,879,339) OTHER FINANCING SOURCES AND (USES) Transfer in 1,375,011 - 1,375,011 r Transfer out - - - TOTAL OTHER FINANCING SOURCES AND (USES) 1,375,011 - 1,375,011 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (789,4I6) (714,912) (1,504,328) FUND BALANCE - Beginning 12,240,341 2,546,577 I4,786,918 FUND BALANCE - Ending $ 11,450,925 $ 1,831,665 $ 13,282,590 The accompanying notes are an integral part of this statement. REQUIRED SUPPLEMENTARY .� INFORMATION OTHER THAN MD&A L ... NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 78 of 102 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND - SUMMARY STATEMENT - NN Year Ended September 30, 2016 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 23,598,510 $ 24,160,175 $ 24,152,970 $ (7,205) Intergovernmental revenue: State firefighter supplement 38,000 38,000 57,682 19,682 Federal grants 676,421 471,421 531,294 59,873 Charges for services 531,100 500,100 476,046 (24,054) Miscellaneous: Interest 45,000 45,000 52,579 7,579 Other 259,017 1,319,018 1,301,304 (17,714) Subtotal - revenues 25,148,048 26,533,714 26,571,875 38,161 L Cash brought forward 13,412,388 12,240,341 - (12,240,341) TOTAL REVENUES 38,560,436 38,774,055 26,571,875 (12,202,180) EXPENDITURES Current Public safety `.. Personnel services 21,079,927 23,417,741 23,218,672 199,069 Operating expenditures 3,905,328 4,033,550 4,101,293 (67,743) Capital outlay 1,309,007 1,422,305 1,386,336 35,969 Debt service: Principal reduction 27,728 27,728 30,001 (2,273) Interest and fiscal charges - - - - Reserves 12,238,446 11,247,742 - 11,247,742 TOTAL EXPENDITURES 38,560,436 40,149,066 28,736,302 11,412,764 a EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - (1,375,01j) (2,164,427) (789,416) �. OTHER FINANCING SOURCES AND (USES) Transfer in - 1,375,011 1,375,011 - Transfer out - - - - TOTAL OTHER FINANCING SOURCES AND (USES) - 1,375,011 1,375,011 - EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER �— FINANCING USES $ - $ - (789,416) $ (789,416) FUND BALANCE - Beginning 12,240,341 FUND BALANCE - Ending $ 11,450,925 The accompanying notes are an integral part of this statement. r.. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 79 of 102 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND - DETAILED STATEMENT - NN Year Ended September 30, 2016 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 23,598,510 $ 24,160,175 $ 24,152,970 $ (7,205) Intergovernmental revenue: State firefighter supplement 38,000 38,000 57,682 19,682 Federal grants 676,421 471,421 531,294 59,873 Charges for services 531,100 500,100 476,046 (24,054) Miscellaneous: Interest 45,000 45,000 52,579 7,579 Other 259,017 1,319,018 1,301,304 (17,714) Subtotal - revenues 25,148,048 26,533,714 26,571,875 38,161 Cash brought forward 13,412,388 12,240,341 - (12,240,341) TOTAL REVENUES 38,560,436 38,774,055 26,571,875 (12,202,180) EXPENDITURES Current Public safety Personnel services: Salaries Firefighters & Admin. 12,893,653 13,088,103 13,150,868 (62,765) Commissioners 41,530 41,530 41,530 - ` Overtime 693,043 1,375,291 1,345,467 29,824 Vacation pay 21,630 195,000 103,959 91,041 L Sick leave 456,748 694,962 607,318 87,644 Incentives and holiday pay 637,401 572,357 582,754 (10,397) Payroll taxes Social Security 1,116,843 1,175,687 1,190,672 (14,985) Benefits Retirement 1,571,021 2,389,056 2,444,970 (55,914) Health insurance 2,774,789 2,774,789 1,592,663 1,182,126 Disability insurance 66,367 66,367 64,420 1,947 Unemployment 8,652 8,652 - 8,652 Workers compensation 489,374 459,447 474,564 (15,117) Employee physicals 174,770 174,770 189,057 (14,287) Post employment health plan 132,376 400,000 397,559 2,441 Health Savings Account Funding - - 1,029,482 (1,029,482) Retirement recognition 1,730 1,730 3,389 (1,659) Subtotal - Personnel services 21,079,927 23,417,741 23,218,672 199,069 The accompanying notes are an integral part of this statement. The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 80 of 102 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND - DETAILED STATEMENT - NN (CONTINUED) Year Ended September 30, 2016 General Fund Variance hum Original Final Favorable Operating expenditures: Budget Budget Actual (Unfavorable) Insurance 329,594 329,594 347,861 (18,267) Uniforms 75,965 150,965 149,674 1,291 _ Communications 20,505 20,505 31,468 (10,963) Telephone 225,594 225,594 238,451 (12,857) Utilities 286,589 286,589 217,151 69,438 Maintenance Vehicle 347,118 417,118 411,758 5,360 Equipment 50,614 30,614 21,230 9,384 Computer 350,190 189,897 210,283 (20,386) Hydrant 24,226 33,517 33,047 470 Building 307,171 404,927 443,305 (38,378) Supplies Office 45,855 45,855 66,635 (20,780) Protective gear 80,031 101,564 132,478 (30,914) Station 46,721 46,721 52,521 (5,800) Emergency medical 114,336 124,336 127,799 (3,463) Hurricane/emergency - - - - Equipment Office 40,664 40,664 51,264 (10,600) Fire 58,834 108,834 116,658 (7,824) Shop 10,382 25,382 23,971 1,411 Warehouse/logistics 4,759 4,759 9,080 (4,321) b•• Professional and other fees Legal and professional 247,447 290,707 289,463 1,244 Property appraiser fees 212,095 192,095 182;884 9,211 b -M Tax collector fees 480,658 480,658 484,369 (3,711) Accounting 69,216 69,216 63,480 5,736 Miscellaneous L Travel 25,264 50,264 48,565 1,699 Water/sewer fee St. 44 4,326 4,326 4,326 Public information officer 3,720 3,720 22 3,698 Fuel and oil 199,060 130,000 145,046 (15,046) _ Legal advertisements 8,652 8,652 8,947 (295) Dues and subscriptions 7,233 12,233 9,083 3,150 CERT team 2,596 2,596 6,961 (4,365) Dive team 5,105 5,105 6,582 (1,477) Fire prevention 18,169 26,169 25,533 636 Training 171,180 138,915 127,353 11,562 Hazardous materials 7,700 7,700 2,366 5,334 Technical rescue 9,560 9,560 7,012 2,548 Boat team 4,542 4,542 2,532 2,010 K-9 search and rescue 1,000 1,000 - 1,000 Honor guard - - - - OPS - - Peer fitness - - - - Miscellaneous 8,657 8,657 6,461 2,196 Operational Reserves Contingency - - - - Subtotal - Operating expenditures 3,905,328 4,033,550 4,101,293 (67,743) The accompanying notes are an integral part of this statement. LReserves NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT 12,238,446 11,247,742 Page 81 of 102 L STATEMENT OF REVENUES, EXPENDITURES AND 38,560,436 40,149,066 28,736,302 11,412,764 CHANGES IN FUND BALANCE - BUDGET AND ACTUAL OVER (UNDER) EXPENDITURES GENERAL FUND - DETAILED STATEMENT - NN (CONTINUED) OTHER FINANCING SOURCES AND (USES) Year Ended September 30, 2016 Proceeds from disposition of capital assets - - - - Transfers in (out) General Fund 1,375,011 TOTAL OTHER FINANCING SOURCES AND (USES) 1,375,011 1,375,011 how EXCESS OF REVENUES AND OTHER FINANCING Variance Original Final Favorable AND OTHER FINANCING USES $ Capital outlay: Budget Budget Actual (Unfavorable) Land - - - - L Station improvements 230,290 123,040 51,919 71,121 Fire & rescue equipment 75,272 43,260 52,761 (9,501) Protective gear 86,520 103,824 83,943 19,881 Communication equipment 15,574 65,000 70,906 (5,906) Medical equipment 95,172 95,172 84,541 10,631 i.. Computers 25,956 172,249 181,596 (9,347) TRT 1,730 1,730 - 1,730 Boat team 15,387 15,387 15,378 19 `. Vehicle purchase 177,366 790,063 819,450 (29,387) Training equipment - 2,800 1,081 1,719 Station equipment & computers - - 24,761 (24,761) `. Logistics/warehouse - - - - Hazardous materials equip. 1,730 - - Fire apparatus 584,010 9,780 - 9,780 i.. Dive equipment - - - - Fire prevention - - - Subtotal - Capital outlay 1,309,007 1,422,305 1,386,336 35,969 low Debt service: Principal reduction 27,728 27,728 30,001 (2,273) LInterest and fiscal charges - Subtotal - Debt service 27,728 27,728 30,001 (2,273) LReserves Reserves 12,238,446 11,247,742 - 11,247,742 L TOTAL EXPENDITURES 38,560,436 40,149,066 28,736,302 11,412,764 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - (1,375,011) (2,164,427) (789,416) OTHER FINANCING SOURCES AND (USES) Proceeds from disposition of capital assets - - - - Transfers in (out) - 1,375,011 1,375,011 TOTAL OTHER FINANCING SOURCES AND (USES) 1,375,011 1,375,011 how EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ - $ - (789,416) $ (789,416) FUND BALANCE - Beginning 12,240,341 L FUND BALANCE - Ending $ 11,450,925 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 82 of 102 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN '" FUND BALANCE - BUDGET AND ACTUAL - IMPACT FEE FUND - SUMMARY STATEMENT - NN Year Ended September 30, 2016 The accompanying notes are an integral part of this statement. Impact Fee Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Fees: Impact fees $ 1,800,000 $ 1,923,602 $ 1,483,922 $ (439,680) Miscellaneous: Interest 480 607 607 - Subtotal - revenues 1,800,480 1,924,209 1,484,529 (439,680) Cash brought forward - - - - TOTAL REVENUES 1,800,480 1,924,209 1,484,529 (439,680) EXPENDITURES Current Public safety Operating expenditures 24,000 30,000 28,848 1,152 Capital outlay 353,500 85,000 80,670 4,330 .� Debt service: Principal - - - - L Interest 22,500 22,500 - 22,500 Reserves 480 386,709 - 386,709 TOTAL EXPENDITURES 400,480 524,209 109,518 414,691 v EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,400,000 1,400,000 1,375,011 (24,989) OTHER FINANCING SOURCES AND (USES) Transfers in/(out) (1,400,000) (1,400,000) (1,375,011) 24,989 TOTAL OTHER FINANCING SOURCES AND (USES) (1,400,000) (1,400,000) (1,375,011) 24,989 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ - $ - - $ - FUND BALANCE - Beginning - FUND BALANCE - Ending $ - L The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL IMPACT FEE FUND - DETAILED STATEMENT - NN L, Year Ended September 30, 2016 r.. REVENUES L Fees: Impact fees Miscellaneous: Interest Subtotal - revenues Cash brought forward Page 83 of 102 Impact Fee Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) $ 1,800,000 $ 1,923,602 $ 1,483,922 $ (439,680) 480 607 607 - 1,800,480 1,924,209 1,484,529 (439,680) TOTAL REVENUES 1,800,480 1,924,209 1,484,529 (439,680) The accompanying notes are an integral part of this statement. EXPENDITURES Public safety: Operating expenditures 24,000 30,000 28,848 1,152 Subtotal - Operating expenditures 24,000 30,000 28,848 1,152 Capital outlay: Land - - 2,606 (2,606) Construction in progress - 4,000 - 4,000 Emergency signal -station #42 353,500 - - - Apparatus station #48 construction - 20,000 34,517 (14,517) Protective gear - 45,000 41,552 3,448 Equipment - 16,000 11995 14,005 Subtotal - Capital outlay 353,500 85,000 80,670 4,330 Debt service: r.. Principal - - - - Interest 22.500 22.500 - 22.500 Subtotal - Debt service 22.500 22.500 - 22.500 Reserves: 480 386.709 - 386.709 TOTAL EXPENDITURES 400,480 524,209 109,518 414,691 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,400,000 1,400,000 1,375,011 (24,989) L OTHER FINANCING SOURCES AND (USES) Transfers in/(out) (1,400,000) (1,400,000) (1,375,011) 24,989 TOTAL OTHER FINANCING SOURCES r.. AND (USES) (1,400,000) (1,400,000) (1,375,011) 24,989 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ - $ - - $ - FUND BALANCE - Beginning - i FUND BALANCE - Ending $ - The accompanying notes are an integral part of this statement. imm NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 84 of 102 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN •— FUND BALANCE - BUDGET AND ACTUAL - INSPECTION FEE FUND - SUMMARY STATEMENT - NN Year Ended September 30, 2016 L Inspection Fee Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Charges for services Inspection fees $ 850,000 $ 870,000 $ 870,933 $ 933 Plan review fees 850,000 870,000 872,677 2,677 Miscellaneous: Interest 1,000 1,000 526 (474) Subtotal - revenues 1,701,000 1,741,000 1,744,136 3,136 Cash brought forward 30,548 9,296 - (9,296) TOTAL REVENUES 1,731,548 1,750,296 1,744,136 (6,160) EXPENDITURES Current �+. Public safety Personnel services 1,575,796 1,589,534 1,595,965 (6,431) L Operating expenditures 68,500 87,000 80,912 6,088 Capital outlay 72,500 72,500 71,612 888 Reserves 14,752 1,262 - 1,262 v TOTAL EXPENDITURES 1,731,548 1,750,296 1,748,489 1,807 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ - $ - (4,353) $ (4,353) FUND BALANCE - Beginning 9,296 FUND BALANCE - Ending $ 4,943 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 85 of 102 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL INSPECTION FEE FUND - DETAILED STATEMENT - NN Year Ended September 30, 2016 n In - The accompanying notes are an integral part of this statement. Inspection Fee Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES _ Charges for services: Inspection fees S 850,000 S 870,000 S 870,933 S 933 Plan review fees 850,000 870,000 872,677 2,677 Miscellaneous: Interest 1,000 1,000 526 (474) Subtotal - revenues 1,701,000 1,741,000 1,744,136 3,136 Cash brought forward 30,548 9,296 - (9,296) TOTAL REVENUES 1,731,548 1,750,296 1,744,136 (6,160) EXPENDITURES Current Public safety Personnel services: hum Salaries Regular 1,069,072 1,069,072 1,049,026 20,046 Overtime 10,000 110,000 108,009 1,991 Sick leave 48,094 18,094 15,000 3,094 Vacation pay - - - ProfessionaUlncentives and holiday pay 9,000 9,000 8,400 600 Payroll taxes Social Security 81,784 81,784 81,539 245 Benefits Retirement 78,947 78,947 111,952 (33,005) L. Health insurance 247,899 181,637 181,590 47 Disability insurance 10,000 - - - Employee physicals 1,000 - - - Unemployment compensation - - - - Workers compensation 20,000 41,000 40,449 551 Subtotal - Personnel services 1,575,796 1,589,534 1,595,965 (6,431) In - The accompanying notes are an integral part of this statement. The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 86 of 102 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - INSPECTION FEE FUND - DETAILED STATEMENT - NN (CONTINUED) _ Year Ended September 30, 2016 Inspection Fee Fund Variance Original Final Favorable Operating expenditures: Budget Budget Actual (Unfavorable) Uniforms 1,000 - - - r.. Telephone 1,000 - - Utilities 2,500 - - - Rent 50,000 50,000 50,000 - Maintenance Computer software & supplies - - 21,177 (21,177) Hydrant - - - - Supplies r.. Office 2,000 - Miscellaneous Employee physicals - - - - Dues & subscriptions - - - Fire prevention 6,000 26,000 - 26,000 Training 5,000 2,000 1,675 325 Travel 1,000 9,000 8,060 940 Subtotal - Operating expenditures 68,500 87,000 80,912 6,088 Capital outlay: ` Office facility - - - - Vehicles 72,500 72,500 71,612 888 Subtotal - Capital outlay 72,500 72,500 71,612 888 Debt service: Principal reduction - - - - Interest and fiscal charges - - Subtotal - Debt service - - - - Reserves: 14,752 1,262 - 1,262 TOTAL EXPENDITURES 1,731,548 1,750,296 1,748,489 1,807 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ - $ (4,353) $ (4,353) FUND BALANCE - Beginning 9,296 FUND BALANCE - Ending $ 1,943 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 87 of 102 '1O6 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND - SUMMARY STATEMENT - BCI Year Ended September 30, 2016 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 3,868,881 $ 3,955,293 $ 3,962,498 $ 7,205 Intergovernmental revenue: State firefighter supplement 8,500 - - - Federal grants 105,388 73,388 82,777 9,389 Charges for services 15,000 29,000 29,810 810 Miscellaneous: Interest 3,000 3,000 454 (2,546) -- Other 92,950 12,950 18,658 5,708 Subtotal - revenues 4,093,719 4,073,631 4,094,197 20,566 Cash brought forward 2,249,744 2,546,579 - (2,546,579) TOTAL REVENUES 6,343,463 6,620,210 4,094,197 (2,526,013) EXPENDITURES Current Public safety Personnel services 3,284,298 3,966,123 3,949,439 16,684 Operating expenditures 608,457 671,362 639,002 32,360 Capital outlay 203,947 241,645 215,994 25,651 Debt service: L Principal reduction 4,320 4,320 4,674 (354) Interest and fiscal charges - - - - Reserves 2,242,441 1,736,760 - 1,736,760 TOTAL EXPENDITURES 6,343,463 6,620,210 4,809,109 1,811,101 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - - (714,912) (714,912) OTHER FINANCING SOURCES AND USES Proceeds from disposition of capital assets - - - - Transfer out - - - - TOTAL OTHER FINANCING SOURCES AND USES - - - - L EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ - $ - (714,912) $ (714,912) FUND BALANCE - Beginning 2,546,577 FUND BALANCE - Ending $ 1,831,665 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 88 of 102 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND - DETAILED STATEMENT - BCI Year Ended September 30, 2016 L L General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 3,868,881 $ 3,955,293 $ 3,962,498 $ 7,205 Intergovernmental revenue: State firefighter supplement 8,500 - - - Federal grants 105,388 73,388 82,777 9,389 Charges for services 15,000 29,000 29,810 810 Miscellaneous: Interest 3,000 3,000 454 (2,546) Other 92,950 12,950 18,658 5,708 r.. Subtotal - revenues 4,093,719 4,073,631 4,094,197 20,566 Cash brought forward 2,249,744 2,546,579 - (2,546,579) TOTAL REVENUES 6,343,463 6,620,210 4,094,197 (2,526,013) L EXPENDITURES Current Public safety Personnel services: Salaries Firefighters & Admin. 2,008,859 2,039,154 2,036,309 2,845 Salaries - harmonization - 312,460 312,460 - r.. Commissioners 6,470 6,470 6,470 - Overtime 107,977 218,055 209,627 8,428 Vacation pay 3,370 28,000 - 28,000 Sick leave 71,162 95,475 - 95,475 Incentives and holiday pay 99,309 91,200 214,238 (123,038) Payroll taxes Social Security 174,006 186,942 185,510 1,432 i.. Benefits Retirement 244,768 352,492 380,931 (28,439) Health insurance 432,319 432,319 408,536 23,783 L Disability insurance 10,341 12,841 10,037 2,804 Benefits harmonization - 22,702 19,459 3,243 Unemployment 1,348 1,348 - 1,348 Workers compensation 76,245 78,165 73,938 4,227 ` Employee physicals 27,230 27,230 29,455 (2,225) Post employment health plan 20,624 61,000 61,941 (941) Health Savings Account Funding - - - - _ Retirement recognition 270 270 528 (258) Subtotal - Personnel services 3,284,298 3,966,123 _ _ 3,949,439 16,684 L L NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 89 of 102 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - e- GENERAL FUND - DETAILED STATEMENT - BCI (CONTINUED) Year Ended September 30, 2016 General Fund Variance Original Final Favorable Operating expenditures: Budget Budget Actual (Unfavorable) - Insurance 51,352 51,352 54,197 (2,845) Uniforms 11,835 11,835 23,320 (11,485) Communications 3,195 3,195 4,903 (1,708) r.., Telephone 35,148 35,148 37,151 (2,003) Utilities 44,651 59,651 32,980 26,671 Volunteer services - - - - L Maintenance Vehicle 54,082 64,082 64,153 (71) Equipment 7,886 7,886 3,308 4,578 Computer 54,560 29,586 32,762 (3,176) bm Hydrant 3,774 6,483 5,149 1,334 Building 47,880 64,291 69,068 (4,777) Supplies `. Office 7,145 10,145 18,353 (8,208) Protective gear 12,469 15,936 20,640 (4,704) Station 7,279 7,279 8,183 (904) L Emergency medical 17,814 20,814 23,646 (2,832) Hurricane/emergency - Equipment Office 6,336 6,336 16 6,320 a- Fire 9,166 19,166 18,176 990 Shop 1,618 1,618 - 1,618 Warehouse/logistics 741 741 1,414 (673) Professional and other fees Legal and professional 38,553 45,293 45,099 194 Property appraiser fees 33,045 38,045 28,494 9,551 Tax collector fees 74,888 74,888 75,466 (578) - Accounting 10,784 10,784 9,890 894 Miscellaneous Travel 3,936 8,936 7,566 1,370 Water/sewer fee St. 44 674 674 852 (178) Public information officer 580 580 3 577 Public education officer - - - - Fuel and oil 31,014 20,116 22,599 (2,483) Legal advertisements 1,348 1,348 1,394 (46) Dues and subscriptions 1,127 1,127 1,415 (288) CERT team 404 404 1,085 (681) Dive team 795 795 1,025 (230) Fire prevention 2,831 2,831 3,978 (1,147) Training 26,670 20,089 19,842 247 - Hazardous materials 1,200 1,200 369 831 Technical rescue 1,490 1,490 1,093 397 Boat team 708 708 394 314 L K-9 search and rescue 135 135 - 135 Honor guard - - - - OPS - - - Peer fitness - - - - Miscellaneous 1,344 1,344 1,019 325 Operational Reserves Contingency - 25,031 - 25,031 Subtotal - Operating expenditures 608,457 671,362 639,002 32,360 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 90 of 102 ;s STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - .xv GENERAL FUND - DETAILED STATEMENT - BCI (CONTINUED) Year Ended September 30, 2016 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - (714,912) (714,912) OTHER FINANCING SOURCES AND USES Proceeds from disposition of capital assets - - Transfer out - TOTAL OTHER FINANCING SOURCES AND USES EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ FUND BALANCE - Beginning FUND BALANCE - Ending (714,912) $ (714,912) 2,546,577 $ 1,831,665 General Fund Variance Original Final Favorable ' Capital outlay: Budget Budget Actual (Unfavorable) Land - - - - Station improvements 35,880 21,960 14,096 7,864 Fire & rescue equipment 11,728 6,740 8,220 (1,480) Protective gear 13,480 16,176 13,078 3,098 Communication equipment 2,426 14,828 24,219 (9,391) a. Medical equipment 14,828 14,828 - 14,828 Computers 4,044 29,018 26,144 2,874 TRT 270 270 2,396 (2,126) Fire replacement equipment - - - - a_ Boat team 2,397 2,397 - 2,397 Vehicle purchase 27,634 124,938 127,672 (2,734) Training equipment - - 169 (169) L' Shop equipment - - - - Logistics/warehouse - - - - Hazardous materials equipment 270 270 - 270 Fire apparatus 90,990 10,220 - 10,220 Dive equipment - - - - Fire prevention - - - - Subtotal - Capital outlay 203,947 241,645 215,994 25,651 Debt service: Principal reduction 4,320 4,320 4,674 (354) Interest and fiscal charges - - - - Subtotal - Debt service 4,320 4,320 4,674 (354) Reserves: Reserves 2,242,441 1,736,760 - 1,736,760 TOTAL EXPENDITURES 6,343,463 6,620,210 4,809,109 1,811,101 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - (714,912) (714,912) OTHER FINANCING SOURCES AND USES Proceeds from disposition of capital assets - - Transfer out - TOTAL OTHER FINANCING SOURCES AND USES EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ FUND BALANCE - Beginning FUND BALANCE - Ending (714,912) $ (714,912) 2,546,577 $ 1,831,665 W. lew NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 91 of 102 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - IMPACT FEE FUND - SUMMARY STATEMENT - BCI Year Ended September 30, 2016 Impact Fee Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES LFees: Impact fees $ 400,000 $ 750,708 $ 1,010,023 $ 259,315 Miscellaneous: Interest 105 15 18 3 Other - - - - Subtotal - revenues 400,105 750,723 1,010,041 259,318 Cash brought forward 1,062,310 1,062,310 - (1,062,310) L, TOTAL REVENUES 1,462,415 1,813,033 1,010,041 (802,992) EXPENDITURES Current a Public safety Operating expenditures 5,253 12,253 11,231 1,022 ._ Capital outlay 890,000 990,000 924,060 65,940 Debt service: L Principal 57,500 57,500 57,500 - Interest and fiscal charges 19,442 19,442 17,250 2,192 Reserves 490,220 733,838 - 733,838 TOTAL EXPENDITURES 1,462,415 1,813,033 1,010,041 802,992 EXCESS OF REVENUES L OVER (UNDER) EXPENDITURES - - - - OTHER FINANCING SOURCES AND (USES) Transfers in - - - - TOTAL OTHER FINANCING SOURCES L, AND (USES) - - - - EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ $ - - $ - FUND BALANCE - Beginning - FUND BALANCE - Ending $ - NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 92 of 102 STATEMENT OF REVENUES, EXPENDITURES AND �- CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - IMPACT FEE FUND - DETAILED STATEMENT - BCI �. Year Ended September 30, 2016 Impact Fee Fund _ Variance Original Final Favorable REVENUES Budget Budget Actual (Unfavorable) Fees: Impact fees $ 400,000 $ 750,708 $ 1,010,023 $ 259,315 Miscellaneous: v Interest 105 15 18 3 Other - - - - Subtotal - revenues 400,105 750,723 1,010,041 259,318 v Cash brought forward 1,062,310 1,062,310 - (1,062,310) TOTAL REVENUES 1,462,415 1,813,033 1,010,041 (802,992) L' EXPENDITURES Operating expenditures: Impact fee collection 5,253 12,253 11,231 1,022 Subtotal - Operating expenditures 5,253 12,253 11,231 1,022 Capital outlay: Land - - 872,616 (872,616) Construction in progress 875,000 975,000 - 975,000 L Emergency signal -station #42 - - 51,444 (51,444) Protective gear 15,000 15,000 - 15,000 Equipment - - - - Subtotal - Capital outlay 890,000 990,000 924,060 65,940 Debt service: Principal 57,500 57,500 57,500 - �' Interest and fiscal charges 19,442 19,442 17,250 2,192 Subtotal - Debt service 76,942 76,942 74,750 2,192 Reserves: 490,220 733.838 - 733,838 TOTAL EXPENDITURES 1,462,415 1,813,033 1,010,041 802,992 L EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - - - L, OTHER FINANCING SOURCES AND (USES) Transfers in - - - - TOTAL OTHER FINANCING SOURCES L AND (USES) - - - - EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) ... EXPENDITURES AND OTHER FINANCING USES - FUND BALANCE - Beginning �- FUND BALANCE - Ending $ - Clem NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 93 of 102 SCHEDULE OF DISTRICT'S PROPORTIONATE SHARE OF THE NET --� PENSION LIABILITY - FLORIDA RETIREMENT SYSTEM (FRS) PENSION PLAN (1) 2016 2015 2014 District's proportion of the net pension liability 0.040983896% 0.038209683% 0.041592399% District's proportionate share of the net pension liability $ 10,348,466 $ 4,935,293 $ 2,537,748 District's covered -employee payroll $ 6,745,995 $ 6,326,722 $ 6,293,887 District's proportionate share of the net pension liability as a percentage of its covered -employee payroll 153.40% 78.01% 40.32% Plan fiduciary net position as a percentage of the total pension liability 84.88% 92.00% 96.09% Notes: (1) The amounts presented for each fiscal year were determined as of September 30. _ SCHEDULE OF DISTRICT CONTRIBUTIONS - FLORIDA RETIREMENT SYSTEM (FRS) PENSION PLAN (1) -T 2016 2015 2014 Contractually required contribution $ 1,099,170 $ 967,270 $ 971,792 — Contributions in relation to the contractually required contribution 1,099,170 967,270 971,792 Contribution deficiency (excess) - - - District's covered -employee payroll $ 6,745,995 $ 6,326,722 $ 6,326,722 Contributions as a percentage of covered -employee payroll 16.29% 15.29% 15.36% Notes: (1) The amounts presented for each fiscal year were determined as of September 30. GASB 68 requires information for 10 years. However, until a full 10 -year trend is compiled, governments should present information for only those years for which information is available. b. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 94 of 102 SCHEDULE OF DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY - HEALTH INSURANCE SUBSIDY (HIS) PENSION PLAN (1) bm District's proportion of the net pension liability District's proportionate share of the net pension liability District's covered -employee payroll District's proportionate share of the net pension liability as a percentage of its covered -employee payroll Plan fiduciary net position as a percentage of the total pension liability V11 2016 2015 2014 0.021530658% 0.021138780% 0.021145042% $ 2,509,309 $ 2,155,823 $ 1,977,113 $ 6,745,995 $ 6,326,722 $ 6,293,887 37.20% 34.07% 31.41% 0.97% 0.50% 0.99% Notes: (1) The amounts presented for each fiscal year were determined as of September 30. b- SCHEDULE OF DISTRICT CONTRIBUTIONS - HEALTH INSURANCE SUBSIDY (HIS) PENSION PLAN (1) 2016 2015 2014 Contractually required contribution $ 87,198 $ 78,787 $ 65,973 .� Contributions in relation to the contractually required contribution 87,198 78,787 65,973 Contribution deficiency (excess) - - - District's covered -employee payroll $ 6,745,995 $ 6,326,722 $ 6,293,887 Contributions as a percentage of covered -employee payroll 1.29% 1.25% 1.05% bm Notes: (1) The amounts presented for each fiscal year were determined as of September 30. bm GASB 68 requires information for 10 years. However, until a full 10 -year trend is compiled, governments should present information for only those years for which information is available. L NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 95 of 102 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION September 30, 2016 ` Changes of Assumptions Actuarial assumptions for both cost-sharing defined benefit plans are reviewed L annually by the Florida Retirement System Actuarial Assumptions Conference. The FRS Pension Plan has a valuation performed annually. The HIS Program has a valuation performed biennially that is updated for GASB reporting in the year a ` valuation is not performed. The most recent experience study for the FRS Pension Plan was completed in 2014 for the period July 1, 2008 through June 30, 2013. �— Because the HIS Program is funded on a pay-as-you-go basis, no experience study has been completed for that program. The actuarial assumptions that determined the L total pension liability for the HIS Program were based on certain results of the most recent experience study for the FRS Pension Plan. The total pension liability for each cost-sharing defined benefit plan was determined using the individual entry age actuarial cost method. Inflation increases for both plans L. is assumed at 2.60%. Payroll growth, including inflation, for both plans is assumed at 3.25%. Both the discount rate and the long-term expected rate of return used for r.. FRS Pension Plan investments was reduced from 7.65% to 7.60%. The plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount �— rate for calculating the total pension liability is equal to the long-term expected rate of return. 6. Because the HIS Program uses a pay-as-you-go funding structure, a municipal bond rate was reduced from 3.80% to 2.85% and was used to determine the total pension AM= liability for the program (Bond Buyer General Obligation 20 -Bond Municipal Bond Index). Mortality assumptions for both plans were based on the Generational .r RP -2000 with Projection Scale BB tables. _ Florida Retirement System Pension Plan There were no changes in actuarial assumptions. As of June 30, 2016, the inflation rate assumption remained at 2.6 percent, the real payroll growth assumption was 0.65 percent, and the overall payroll growth rate assumption remained at 3.25 percent. The long-term expected rate of return was reduced from 7.65 percent to 7.60 percent. Health Insurance Subsidy Pension Plan The municipal rate used to determine total pension liability decreased from 3.80 percent to 2.85 percent. 4ms <,A 7" NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 96 of 102 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION ks: September 30, 2016 Pension Expense and Deferred Outflows/Inflows of Resources In accordance with GASB 68, paragraphs 54 and 71, changes in the net pension liability are recognized in pension expense in the current measurement period, except as indicated below. For each of the following, a portion is recognized in pension expense in the current reporting period, and the balance is amortized as deferred outflows or deferred inflows of resources using a systematic and rational method over a closed period, as defined below: • Differences between expected and actual experience with regard to economic and demographic factors - amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan (active and inactive employees) L • Changes of assumptions or other inputs - amortized over the average �. expected remaining service life of all employees that are provided with pensions through the pension plan (active and inactive employees) Changes in proportion and differences between contributions and proportionate share of contributions - amortized over the average expected 6= remaining service life of all employees that are provided with pensions through the pension plan (active and inactive employees) • Differences between expected and actual earnings on pension plan investments - amortized over five years bm Employer contributions to the pension plans from employers are not included in 6w collective pension expense. However, employee contributions are used to reduce pension expense. The average expected remaining service life of all employees provided with pensions through the pension plans at June 30, 2016, was increased from 6.3 years to 6.4 for FRS and 7.2 years for HIS. L ADDITIONAL REPORTS bam 1«v law �:G ow— L TUSCAN & 'Company, PA a--- Certified Public Accountants & Consultants ft - Affiliations Florida Institute of Certified Public Accountants American Institute of Certified Public Accountants INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE w_. AND OTHER MATTERS BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners North Collier Fire Control and Rescue District 1885 Veterans Park Drive Naples, Florida 34109-0492 Private Companies Practice Section Tax Division Page 97 of 102 We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America, the basic financial statements of the governmental activities and each major and non -major fund of North Collier Fire Control and Rescue District (the "District") as of and for the year ended September 30, 2016, and the related notes to the financial statements which collectively comprise the District's basic financial statements as listed in the table of contents and have issued our report thereon dated February 23, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control. A deficiency in internal control exists when the design or operation of a control does not allow L management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a L material misstatement of the basic financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of INTEGRITY ......... SERVICE ......... EXPERIENCE® t 12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097 ho. Page 98 of 102 deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. ` Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be L material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses, as how defined previously. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether North Collier Fire Control and Rescue District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial �. statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. ` Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. AA TUSCAN & COMPANY, P.A. L Fort Myers, Florida February 23, 2017 L rr.. Affiliations TUSCAN Florida Institute of Certified Public Accountants American Institute of Certified Public Accountants ;trzn Company, PA Private Companies Practice Section Tax Division Certified Public Accountants & Consultants Page 99 of 102 INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES Board of Commissioners North Collier Fire Control and Rescue District 1885 Veterans Park Drive Naples, Florida 34109-0492 L We have examined North Collier Fire Control and Rescue District's compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2016. Management is responsible for North Collier Fire Control and Rescue District's compliance with those requirements. Our responsibility is to express an opinion .� on North Collier Fire Control and Rescue District's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the ` American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about North Collier Fire Control and Rescue District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. ` Our examination does not provide a legal determination on North Collier Fire Control and Rescue District's compliance with specified requirements. In our opinion, North Collier Fire Control and Rescue District complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016. This report is intended solely for the information and use of the North Collier Fire Control and _ Rescue District and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. W�' L TUSCAN & COMPANY, P.A. Fort Myers, Florida February 23, 2017 L= INTEGRITY ......... SERVICE ......... EXPERIENCE® 12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097 how TUSCAN Company, PA i.. Certified Public Accountants & Consultants Affiliations Florida Institute of Certified Public Accountants American Institute of Certified Public Accountants Private Companies Practice Section INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT Board of Commissioners North Collier Fire Control and Rescue District 1885 Veterans Park Drive Naples, Florida 34109-0492 Tax Division Page 100 of 102 We have audited the accompanying basic financial statements of North Collier Fire Control and Rescue District (the "District") as of and for the year ended September 30, 2016 and have issued our report thereon dated February 23, 2017. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing _ Standards, issued by the Comptroller General of the United States of America and Chapter 10.550, Rules of the Florida Auditor General. We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an �- audit of the financial statements performed in accordance with Government Auditing Standards and Chapter 10.550, Rules of the Florida Auditor General. Disclosures in those reports, which were dated February 23, 2017, should be considered in conjunction with this report to management. Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General, which governs the conduct of local governmental entity audits performed in the State of how Florida. This letter included the following information, which is not included in the aforementioned auditor's report: Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine L whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. The prior year report contained a financially significant comment which appears to have been resolved. L Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. No such ` recommendations were noted to improve financial management. r INTEGRITY ......... SERVICE ......... EXPERIENCE® l� 12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097 Page 101 of 102 Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address violations or noncompliance with provisions of contracts or grant agreements, or abuse, that have an effect on the financial statements that is less than material but more —' than inconsequential. In connection with our audit, we did not have any such findings. Section 10.554(1)(i)4., Rule of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. The District discloses this information in the notes to the financial statements. Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be included as to whether or not the local government entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the District �. did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we determine whether the annual financial report for the District for the year ended September 30, 2016, filed with the Florida Department of Financial Services pursuant to Section ■.. 218.32(1)(a) Florida Statutes, is in agreement with the annual financial audit report for the year ended September 30, 2016. In connection with our audit, we determined that these two reports were in agreement. Pursuant to Sections 10.554(1)(i)5.c. and 10.556(7), Rules of the Auditor General, we applied financial condition assessment procedures. It is management's responsibility to monitor the District's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by management. Pursuant to Section 10.554(1)(i)5.d., Rules of the Auditor General, requires a statement indicating a failure, if any, of a component unit Special District to provide financial information necessary to a proper reporting of the component unit within the audited financial statements of this entity (F.S. Section 218.39(3)(b)). There are no known component special districts required to report within these financial statements. Page 102 of 102 Section 10.556(10)(a), Rules of the Auditor General, requires that the scope of our audit to determine the entity's compliance with the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our how audit, we determined that the District complied with Section 218.415, Florida Statutes as reported in our Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes dated February 23, 2017, included herein. PRIOR YEAR COMMENTS: Prior year comment 2015-1 appears to have been resolved. r� CURRENT PERIOD COMMENT: There were no financially significant comments noted. ft— Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its distribution is not limited. Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Board of Commissioners, management, the Auditor General of the State of Florida and other federal and state agencies. This report is not intended to be and should not be used by anyone other than these specified parties. ',—"-t'A / i P -W, TUSCAN & COMPANY, P.A. Fort Myers, Florida February 23, 2017 ." L EXHIBIT NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT BOARD OF FIRE COMMISSIONERS Norman E. Feder, Chairman ■ Christopher L. Crossan, Vice Chairman ■ Margaret Hanson, Secretary -Treasurer James Burke ■ Ramon E. Chao ■ Richard Hoffman ■ J. Christopher Lombardo ■ John O. McGowan April 20, 2017 Auditor General's Office Local Government Audits/342 Claude Pepper Building, Room 401 111 West Madison Street Tallahassee, FL 32399-1450 We are pleased to note that the audit report for the fiscal year 2015/2016 for the North Collier Fire Control and Rescue District reflected no current year comments which require management's response. As to the prior year comment, the Board of Fire Commissioners and management staff the have worked diligently to resolve the one comment: "2015-1. Fixed Asset Inventory Control Should Be Improved" In addition to a new Logistics Officer, the District has assigned a firefighter to work in logistics to provide assistance in the routine and regular tracking, location and inventory of the District's fixed assets. A comprehensive physical inventory was conducted. The fixed asset list of the two service delivery areas were combined and are now maintained on one list. One depreciation program is now used for all fixed assets, regardless of which service delivery area originally purchased the item. Staff is currently researching various software and hardware packages that will provide technical assistance in the tracking of the many assets of the District. We have visited many different fire departments to view the technology they use to track their fixed assets and intend to recommend to the Board that a purchase of software and hardware be approved to provide the additional technical assistance to effectively track the District's assets. The Board of Fire Commissioners and management staff of the North Collier Fire Control & Rescue District maintain their commitment to create and maintain internal controls, and policy and procedures to insure accurate reporting, accountability and provide for the financial stability of the District . Sincerely, NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT 1885 Veterans Park Drive Naples, FL 34109 ■ (239) 597-3222 ■ Fax (239) 597-7082 ■ www.northcollierfire.com