25200 SW Parkway Ave. Suite 3 | Wilsonville | Oregon | 97070 www

Transcription

25200 SW Parkway Ave. Suite 3 | Wilsonville | Oregon | 97070 www.esci.us | 800-757-3724 info@esci.us
Bend Fire Department
and
Deschutes County Rural Fire
Protection District #2, OR
Fire District Feasibility Study
Prepared By:
Don Bivins
Don Stewart
Lane Wintermute
Bend Fire Department – Deschutes County Rural Fire Protection District #2, OR
Table of Contents
Acknowledgements ................................................................................................................. iii
Executive Summary .................................................................................................................. 1
Purpose and Methodology ........................................................................................................ 9
Evaluation of Current Conditions .......................................................................................... 11
Organization Overview ........................................................................................................... 11
Service Area Population and Demographics ........................................................................ 11
History, Formation, and General Description ........................................................................ 13
Current Service Delivery Infrastructure ................................................................................. 14
Governance, Oversight, and Lines of Authority .................................................................... 14
Foundational Policy Documents ........................................................................................... 17
Organizational Design .......................................................................................................... 17
Reporting and Recordkeeping .............................................................................................. 18
Staffing and Personnel Management ...................................................................................... 19
Administrative and Support Staffing...................................................................................... 19
Operational Staffing .............................................................................................................. 21
Staffing Allocation to Functions and Divisions ...................................................................... 22
Service Delivery and Performance.......................................................................................... 27
Response Demand............................................................................................................... 28
Resource Distribution ........................................................................................................... 32
Resource Concentration ....................................................................................................... 34
Response Reliability ............................................................................................................. 40
Response Performance ........................................................................................................ 41
Incident Control and Management Methods ......................................................................... 45
Mutual and Automatic Aid Agreements................................................................................. 46
Support Programs................................................................................................................... 47
Training ................................................................................................................................ 47
Emergency Medical Services ............................................................................................... 48
Fire Prevention ..................................................................................................................... 49
Logistics ............................................................................................................................... 50
Finance/Payroll..................................................................................................................... 51
Human Resources................................................................................................................ 52
Legal .................................................................................................................................... 52
Information Technology ........................................................................................................ 53
Communications................................................................................................................... 53
Capital Assets, Capital Improvement, and Replacement Programs ........................................ 55
Facilities ............................................................................................................................... 55
Apparatus ............................................................................................................................. 63
Fiscal Analysis ........................................................................................................................ 67
Property Tax......................................................................................................................... 67
Measure 5 ............................................................................................................................ 67
Measure 50 .......................................................................................................................... 68
Property Assessment ........................................................................................................... 70
Potential for Compression .................................................................................................... 72
BFD Financial Profile ............................................................................................................ 74
BFD Vehicle Replacement ................................................................................................... 83
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DCRFPD #2 Financial Profile ............................................................................................... 87
Economic Indicators ............................................................................................................. 94
Conclusion: Revenue Enhancement/Cost Avoidance Opportunities ................................... 106
Findings, Recommendations, and Plan of Implementation ............................................... 109
Strategy 1 – Annexation Initiative.......................................................................................... 110
Strategy 2 – New Fire District Initiative ................................................................................. 120
Strategy 3 – Consolidation with other Fire Districts Initiative ................................................. 129
Strategy 4 – Other Options Considered ................................................................................ 135
Appendices ........................................................................................................................... 139
Appendix A: Table of Figures ................................................................................................ 139
Appendix B: Summary Table of Stakeholder Interviews ........................................................ 142
ii
Acknowledgements
Emergency Services Consulting International (ESCI) would like to acknowledge that without the
assistance and support of the administrative staff and personnel of the City of Bend, the Bend
Fire Department and Deschutes County Rural Fire Protection District #2 this project could not
have been completed.
Bend City Council
Jim Clinton, Mayor
Jodie Barram, Mayor Pro Tem
Mark Capell
Victor Chudowsky
Doug Knight
Scott Ramsay
Sally Russell
Board of Directors
Al Dertinger
Dick Ridenourr
George Roshak
Harold Ashford
Kent Haarberg
Bend City Manager
Eric King
Fire Chief & District Manager
Larry Huhn, Fire Chief
Tom Fay, District Manager
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Executive Summary
Emergency Services Consulting International (ESCI) was engaged by the Bend Fire
Department (BFD) and Deschutes County Rural Fire Protection District #2 (DCRFPD #2 or
Deschutes #2) to conduct a feasibility study regarding annexation of the city into the district as
well as other options to provide sustainable funding for future fire department operations. This
report is the culmination of that evaluation.
ESCI thanks the staff of the City of Bend, BFD, and DCRFPD #2 for their outstanding
cooperation in the preparation of this report. All involved were candid in their comments and
provided an enormous amount of information.
The study took into account the current governance model, four alternative governance models
(four alternative strategies), and the critical financial issues facing the two fire agencies. The
alternative strategies were evaluated to determine fiscal impacts and whether each strategy was
a viable solution to establish a sustainable model into the future. Those strategies and specific
recommendations can be found in the section titled, Findings, Recommendations, and Plan of
Implementation.
Evaluation of Current Conditions
An analysis of current conditions of the two fire agencies is the first step to be taken in analyzing
the potential advantages of each strategy considered. This snapshot in time provided the ESCI
project team with a baseline from which to work. The operating assumption is that the current
baseline of infrastructure and services is maintained going forward with any of the strategies
being considered.
Organizational Overview
The combined service area encompasses 164 square miles for fire protection and is home to
over 97,000 people. The BFD also serves an additional 1,562 square miles in the contracted
Ambulance Service Area (ASA).
The Bend residential properties are 58.3 percent owner
occupied, which is slightly low when compared with the statewide average of 63.1 percent.
The fire department is structured in a typical military-style hierarchy, standard for the fire service
nationally.
Most personnel at each fire station are assigned to “swing” between multiple
vehicles based on the type of call for service. While this provides for an efficient response, it
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also leaves the companion vehicles unstaffed and unavailable for a competing call for service.
All but one of the stations has this configuration. As a result, those competing calls for service
are shifted to the next closest station to handle, lengthening response time. As this domino
effect cascades through the system, the community may find itself with very few units available
for emergencies and those which are available are significantly out of position.
Facilities, equipment and personnel are deployed in a decentralized manner in an “outside-in”
configuration, allowing for a large concentration of resources to arrive simultaneously within the
urban core where the demand is heaviest and also respond out toward the more rural areas
without getting bogged down in urban traffic congestion.
deployment.
This is a very efficient model of
Facilities and equipment are well maintained, but an equipment replacement
reserve is not adequately funded.
The BFD has up-to-date policies, procedures, and rules and regulations as well as current job
descriptions for all classifications. The department has an excellent automated service which
tracks, trains, and ensures that all personnel receive proper notice of any changes to these
foundational documents. The service also tracks mandatory certification expiration dates and
notifies employees and their supervisors in advance of the certification expiration dates. While
the BFD records appear to be well maintained, there are numerous software programs being
used to manage various databases, including citywide systems. It is beyond the scope of this
project to evaluate the compatibility of these various programs, but care should be exercised in
ensuring seamless integration of data in order to make the best management decisions.
Staffing and Personnel Management
The administration and support for the BFD is 16 percent of the total workforce and, in ESCI’s
experience, is within normal limits for an agency its size. A critical administrative gap exists by
having a part-time EMS manager overseeing fully 80 percent of the BFD emergency demand for
service.
One half-time EMS support person assists the half-time EMS Manager, and one
quarter-time employee is dedicated to the Geographical Information Systems.
The EMS
administration and oversight should be expanded to address the EMS system within BFD.
The training division consists of one deputy chief. While the position is a high ranking one, it is
a division of one and the effectiveness of the division is compromised when curriculum must be
developed, evaluations must be performed, and routine skills maintenance is required.
The fire prevention division is adequately staffed with a fire marshal and four deputy fire
marshals conducting code enforcement and existing occupancy inspections. An axiom in fire
2
prevention circles is that the least expensive emergency to manage is the one which doesn’t
occur. Additional public education effort in the EMS areas would also reduce some demand for
the department.
The operational staffing level for the BFD is 84 percent of the total workforce. While the ratio is
appropriate, the staffing levels are below average as compared to regional and national
agencies the size of the Bend Fire Department (see comparison chart provided below).
Supervisors make up 36 percent of the total operational personnel, which is appropriate. The
number of paramedics receiving specialty pay for this additional certification may be high when
compared to the number required to provide Advanced Life Support (ALS) services, but
reducing the number may also increase overtime exposure to ensure proper levels of ALS
certified personnel are on duty to meet the service demand. Further analysis of this area may
be warranted to gain additional efficiencies.
Firefighters per 1,000 Population
1.5
1
1.35
0.91
0.72
0.5
0
Regional
Median
National
Median
BFD
The operational staff is assigned to a 48-96 work shift. While this is a growing trend in the fire
service, it is a controversial one. Ample evidence indicates sleep deprivation can affect the
decision-making, and thus the safety, of people in careers who have to make rapid decisions in
a changing environment.1 The Bend Fire Department has a significant response demand in
handling over 8,200 calls for service last year. This can equate to a high call ratio in a given 24hour period (the standard shift length for firefighters). If high demand occurs late in the first 24
hours of a shift, it compounds the impact in the second 24 hours.
Volunteer staffing is predominantly relegated to administrative support, with only one
operational volunteer as a remnant of a more robust volunteer program in BFD’s earlier
existence. Opportunity exists to redevelop a volunteer cadre of limited operational capability,
1
Effects of Sleep Deprivation on Fire Fighters and EMS Responders, Diane L. Elliot, MD, FACP, FACSM
& Kerry S. Kuehl, MD, DrPH, Division of Health Promotion & Sports Medicine, Oregon Health & Science
University, Portland, Oregon, 2007.
3
such as wildland firefighting and ambulance transportation, which should be further explored for
increased efficiency and/or capacity.
Service Delivery & Performance
The urban core of the service area is contained within the city limits and represents the area of
greatest demand for services (82.1 percent of total calls) and the highest risk. Over 90 percent
of the road network (approximately 875 road miles) is within eight minutes of a BFD station.
The fire stations are well positioned to provide an appropriate response to incidents where the
greatest risk is while providing an appropriate level of response to the majority of the rural areas
contained in the district. However, cross-staffing of units from four of the five stations creates
exposure to a delayed response time for the secondary calls since key equipment is vacated to
handle the first call.
A critical task analysis has been conducted by the BFD prior to this study being conducted.
Based on that critical task analysis, the outcomes for structure fires and cardiac arrests in the
urban core are more likely to be positive given the ability of the necessary staff to assemble
within eight minutes. However, for areas in the extreme north, west, and south of the service
area the only effective response force which can be assembled in eight minutes is for non-life
threatening medical emergencies, car fires, and other minor responses, as well as initial
response to some technical responses. The outcome for structure fires and cardiac arrest
responses for these areas is not likely to be positive given the difficulty in assembling the
necessary personnel in that same eight-minute window.
In the following table, the nine years of data available to the ESCI team reflects the years in
which response time objectives were or were not met for the city and for the district for the first
arriving unit to an emergency. The response time objectives are 08:45 (8 minutes 45 seconds)
or less to 80 percent of the fires or EMS incidents within the city, and 12:15 or less to 80 percent
of the fires or EMS incidents within the district. The years in which the response time objective
was not met are noted in red.
4
Historical Arrival Time of First Dues Units by Agency, EMS & Structure Fire
EMS Incidents - First Arriving Vehicle
Zone
BFD
DCRFPD
#2
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
90th
10:06
10:17
10:00
9:37
9:41
9:35
9:28
9:53
10:30
80th
8:47
9:03
8:25
8:17
8:16
8:18
8:11
8:26
8:57
Avg.
6:51
6:58
6:24
6:13
6:09
6:16
6:05
6:35
7:00
2003
2004
2005
2006
2007
2008
2009
2010
2011
15:06
15:00
14:40
14:00
13:44
13:31
12:57
12:57
14:26
13:03
12:32
12:31
12:13
12:00
11:48
11:42
11:45
12:42
10:06
9:43
9:20
9:08
8:56
8:39
8:50
9:00
9:58
Structure Fires - First Arriving Vehicle
Zone
BFD
DCRFPD
#2
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
90th
10:40
9:08
9:15
10:01
8:53
9:37
9:26
9:59
9:12
80th
8:55
8:20
7:58
8:53
8:21
8:50
8:40
8:26
8:34
Avg.
7:00
6:59
6:46
7:09
6:29
6:31
6:35
7:10
7:02
2003
2004
2005
2006
2007
2008
2009
2010
2011
14:32
15:32
12:56
13:12
13:35
12:51
12:02
12:58
12:24
12:59
12:11
10:35
10:54
11:44
12:11
11:05
12:25
11:19
10:00
10:03
9:21
9:16
8:42
9:09
8:41
9:29
9:57
Full assembly of an effective response force, which is the total number of personnel required to
effectively mitigate the emergency according to the critical task analysis, is as follows:
Current BFD ERF Response Time Objectives
BFD
Call Type
Structure Fire
Wildland Fire
EMS (2 units)
Effective
Response
Force
14
6-10
5+
DCRFPD #2
Objective
(Minutes)
21
15
13.5
Effective
Response
Force
14
6-10
5+
Objective
(Minutes)
26
22
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Support Programs
The internal support programs consist of Training, EMS, Fire Prevention, and Logistics internally
within the fire department.
City support programs consist of Finance/Payroll, Human
Resources, Legal, Information Technology, and Communications.
Within the Training Division, training is being delivered appropriately and within an up-to-date
classroom and drill ground facility. Difficulty comes in scheduling training with on duty crews.
5
Call load tends to interfere with scheduled training, causing catch-up or make-up sessions to be
scheduled. This causes some personnel to miss contemporary training sessions and lag behind
the rest of the organization. This is a challenge most fire departments have to address, but is
compounded by BFD’s already lean resource levels having to find opportunities to obtain the
training between responses.
The EMS Division is led by a part-time EMS Administrator (who vacates the position mid-year
this year) and an EMS support person. This program constitutes over 80 percent of the demand
facing the BFD and warrants a full time position managing it. Billing and collection services are
currently being administered internally, with billing managed by the BFD and collection being
handled by the city. These functions lend themselves to being outsourced to the private sector,
and are typically paid for through a small percentage of collections.
The Fire Prevention Division is the best staffed support division in the department. One of the
primary goals of the division is to inspect all applicable occupancies annually, which is the
industry standard and consistent with best practices. However, the division is achieving only 75
percent of its inspection goal each year. Consideration should be given to revising this goal or
addressing the staffing needs.
The internal city support divisions appear to be well-managed and provide appropriate services
to the fire department. The relationship between IT services and the fire department has the
greatest set of challenges as reported by a large number of fire employees. While it is beyond
the scope of this project to delve deeply into the source of these challenges, it is clear that the
fire department believes it is not receiving the services it should and is paying too high a price
for the services it receives.
Without regard to these challenges, most of the internal support services the city currently
provides will have to be provided under any alternative governance model used, whether they
are contracted from the city, developed internally to the new fire agency, or outsourced from
either agency. Any governance model change should prompt a request for quotes from public
and private vendors of these support services. This will provide cost and service comparisons
to consider, drives efficiency, and is a good business practice.
Capital Assets, Capital Improvement, and Replacement Programs
The capital facilities are all in excellent condition with the exception of the Tumalo station, which
is in fair condition. ESCI was informed that plans are being made to replace the station by
building on property adjacent to the existing facility. As of this writing, those plans are on hold
6
due to fiscal constraints. It is imperative that a funding plan be in place to address the stations
in the future when they will need to be replaced. The stations have all been constructed within
three years of each other and will likely reach the end of their useful lives within a similar
timeframe. Bonding such a capital need would be a reasonable approach, but this decision
should be made with forethought to avoid unintended conflicts with other funding initiatives
which may be implemented simultaneously.
Apparatus is well maintained by the city shop personnel. The age of the apparatus is somewhat
advanced, in some cases potentially requiring replacement in the next three to four years. Most
of the apparatus are in good to fair condition.
Inadequate apparatus replacement reserve
exposes the department to a challenge when these vehicles need to be replaced. A vehicle
replacement schedule has been created and provided as part of this report for the department
to consider.
Financial Status
ESCI completed a financial review of the current conditions of both Bend Fire Department and
Deschutes County Rural Fire Protection District #2 by using five years’ of financial history to
establish a basis of activity for both organizations. ESCI then projected forward five years using
the 2012/13 financial forecast to determine what the department would look like in terms of
financial stability.
In making financial projections many assumptions need to be made to determine the economic
impact on operations. ESCI looked at new construction and current housing data to establish
potential impact on appraised value for collecting property tax revenue, historical CPI increases
to apply to future costs, new vehicle replacement costs, current debt amortization schedules,
future planned borrowing information, and future increases in retirement costs for employees.
The information extracted from these reviews indicated that the current forecasting estimates
used by the Bend Finance Department were consistent with ESCI assumptions and estimates.
The results of the review were not favorable. The financial forecast assumed a beginning Fire
Fund Balance for 2012/13 of $2.5 million. Applying the assumptions to the 2012/13 forecast
projected that the Bend Fire Department would consume the entire fire fund balance by early
2016/17 and would have a deficit balance of over $800,000 at the end of fiscal year 2017/18. If
the City and Deschutes #2 did nothing, additional funds would need to be allocated from the
General Fund to cover the shortfall.
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Findings & Recommendations
ESCI agrees with the Bend Fire Department, Deschutes County Rural Fire Protection District
#2, and the City of Bend that the current model for fire service is not sustainable. The current
trajectory of the fire department has it consuming the fund balance by early in the 2016-2017
budget year. There will be a deficit fund balance, therefore requiring additional funds to be
allocated by the city and district.
To avoid this, ESCI recommends the two agencies consider one or more of the following three
alternatives:
1. Explore efficiencies, lower services and standards, and outsource some support
services and some internal services (IT and EMS billing/collections).
2. Implement a local option levy in the City of Bend and the District to generate additional
revenue. The amount necessary to create a sustainable fiscal foundation is an
additional $2 million per year.
3. Implement Strategy 1 - Annexation Initiative, with District #2 annexing the City of Bend
and becoming the provider of fire services for the expanded district.
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Purpose and Methodology
The City of Bend (COB or City), Bend Fire Department (BFD), and Deschutes County Rural Fire
Protection District #2 (DCRFPD #2 or Deschutes #2) have determined that the current
contractual arrangement for fire services is not sustainable, given the existing revenues and
existing expenses of the fire department.
The agencies awarded ESCI with a contract to
develop a feasibility study regarding a change in governance model which might make the
provision of fire services sustainable financially into the future.
To determine the viability of options for BFD and District #2 to consider, a careful analysis was
performed of the current conditions of the fire department. Once the current conditions were
determined, financial projections were calculated to quantify the degree to which a gap exists
between revenues and expenses into the foreseeable future. Once it was confirmed that the
current financial trajectory was not sustainable, alternative governance models were examined.
The three main alternative governance models include the City of Bend annexing into District
#2; the City of Bend and District #2 forming a new fire district; and the City of Bend and District
#2 combining with other jurisdictions to form a new fire district. Additional discussion is provided
regarding separation of the existing agreement, formation of a county-wide fire district, and
maintaining the status quo (do nothing).
This report flows in the same order as described above, starting with the current conditions
analysis.
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Evaluation of Current Conditions
Organization Overview
A study focused on potentially restructuring the current relationship between separate agencies
should begin with a baseline evaluation of the study participants in their current state. In this
case, the City of Bend Fire Department (BFD) and Deschutes County Rural Fire Protection
District #2 (DCRFPD #2, or the district) are currently operating predominantly as one service
delivery system. This section of the report focuses on the basic organizational structure and
function of the study agencies and provides recommendations for improvement where
appropriate without regard for any restructured governance.
Service Area Population and Demographics
The City of Bend is home to an estimated 76,639 residents2 distributed across 32 square miles,
or an average of 2,395 persons per square mile. This meets the US Census Bureau definition
of an urbanized area.3 A modest percentage (58.3 percent) of Bend residents own their own
home as compared to the rest of the state (63.1 percent). There are almost 12,000 firms in the
city.
Deschutes County Fire District #2 is more difficult to accurately pinpoint census data as it is a
subset of the Deschutes County census information. The district is home to an estimated
20,979 residents distributed across 132 square miles, or an average of 159 persons per square
mile. This meets the US Census Bureau definition of rural.4
Figure 1: Area and Density, BFD and DCRFPD #2
City of Bend
DCRFPD #2
Square Miles
Population Density
Approximately
32 square miles
Approximately
132 square miles
2,395
per square mile (Urban)
159
per square mile (Rural)
2
United States Census Bureau. http://quickfacts.census.gov/qfd/states/41/4105800.html.
Department of Commerce, Bureau of the Census, Federal Register/Vol. 76, No. 164/Wednesday,
August 24, 2011/Notices. Urban Area Criteria for the 2010 Census.
http://www.census.gov/geo/www/ua/fedregv76n164.pdf.
4
United States Census Bureau, 2010 Census Urban Area FAQs,
http://www.census.gov/geo/www/ua/uafaq.html.
3
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Figure 2: City of Bend and Deschutes County Rural Fire Protection District #2 Boundaries
Both organizations also provide ambulance transport service to a total area of 1,726 square
miles, which includes the area contained within the two jurisdictions. The Ambulance Service
Area (ASA) also includes 276 square miles in neighboring Crook County. Figure 3 depicts the
ASA boundaries.
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Figure 3: BFD Ambulance Service Area Boundary
History, Formation, and General Description
On July 24, 1905, street hydrants, hose cart, fire hose, ladders and nozzles were installed and
provided for the (Bend) community’s use for fire protection after a fire in a local business
threatened the entire business section of the city. Water was supplied from a water tank and
pump on Hospital Hill and provided pressure in the new city hydrant system.
On February 24, 1919, the Bend City Council adopted a resolution forming the Bend Fire
Department, which was led by Thomas W. Carlon, Bend’s first fire chief. In the 95 years since
then, there have only been six fire chiefs for the Bend Fire Department, which attests to the
stability of the department.
Bend Fire Chief Vern Carlon helped establish Deschutes County Rural Fire Protection District
#2, which was formed in 1952. From the inception of the fire district, services were provided by
the City of Bend fire Department. In 1991, the charter of services was expanded to include
emergency medical services (EMS). In 1994, Tom Fay joined the district. With a background in
property management, Tom eventually became the district’s manager.
On July 1, 1999,
Deschutes County Rural Fire Protection District #2 entered into a revised formal contract for
13
services from Bend Fire Department and has continued to receive emergency services from
BFD ever since. The district manager continues to serve in that capacity as well as managing
the properties owned by the district, which includes all of the fire stations Bend Fire Department
operates from.
The district and the city fire department work closely together and focus on providing the highest
level of service affordable, given the fiscal constraints both agencies face.
Current Service Delivery Infrastructure
The Bend Fire Department, which serves both the City of Bend and Deschutes County Rural
Fire Protection District #2 via a service contract, is designed as a typical fire service hierarchy.
This hierarchy mimics a military model to facilitate command and control under emergency
conditions while maintaining accountability and clear lines of authority during routine activities.
The department has decentralized fire facilities designed and positioned to provide rapid
deployment of personnel and equipment for emergency responses. These fire stations have
emergency vehicles (apparatus) designed for the risks they have been acquired to address.
The facilities and apparatus are addressed in greater detail in the Capital Assets, Capital
Improvement, and Replacement Programs section of this report.
Governance, Oversight, and Lines of Authority
The Bend Fire Department is one of several departments which make up the City of Bend. The
City of Bend has an elected city council as its governing body; typical of most Oregon
municipalities. The head of the governing body is elected from among the councilmembers,
who serves as the mayor. Bend has a Council-Manager form of government. The city manager
reports to the city council and supervises all department heads.
The Bend Fire Department is led by the fire chief who is a five-year veteran of the position. The
authority of the fire chief is defined by city charter and via a job description.
The chief is
currently under contract with the city, the term of which expires May 1, 2013. The fire chief
manages all aspects of the fire department directly or through subordinate staff following a
paramilitary chain of command, which is characteristic of the fire service. Figure 4 illustrates
this internal structure.
The organizational chart reflects a traditional hierarchical structure.
Responsibilities are
appropriately distributed and the chain of command and communication flow is represented
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clearly for all personnel to understand. All subordinate career personnel have current, up-todate job descriptions.
The Deschutes County Rural Fire Protection District #2 is a special purpose district as defined
by Oregon Revised Statutes, chapter 478.
On July 1, 1999, the district entered into a
comprehensive service contract with the Bend Fire Department for fire protection services. The
contract provides benchmarked services by which the city is obligated to provide on behalf of
the district. DCRFPD #2 operates under the oversight of a five-member Board of Directors
(Board) elected by the voters. Board members serve four-year terms and elect officers from
within their ranks.
Board members have broad authority to govern the provision of fire protection and emergency
services within the district, including administering the service contract with the City of Bend Fire
Department. The board has a district manager on staff as the only district employee. The
district manager’s responsibilities include managing the service contract; administering the dayto-day business of the district; managing the facilities the district owns; and to advising,
implementing, and administering the adopted policies of the board.
15
Figure 4: BFD Organizational Chart
Fire Chief
Larry Huhn
Deputy Chief Operations
Deputy Chief Training
Doug Koellermeier
Mark Taylor
Administrative
Specialist IV
Judi Norris
Logistics
Technician
Administrative
Specialist III
Peggy Kirkpatrick
Ambulance Billing
Technician
Kindra Harms
A Shift
Battalion Chief
Boos
C Shift
Battalion Chief
Madden
16
Medical Transport
Team
Administrative
Specialist I
Kristy Carey
Sara Mohan
Volunteers
B Shift
Battalion Chief
Howe
EMS Program Manager
Tom Wright
Station 1
Captain
Engineer
Firefighter
Station 2
Captain
Engineer
Firefighter
Station 3
Captain
Engineer
Firefighter
Deputy Chief/Fire Marshal
Larry Medina
Deputy Fire Marshals
Jeff Bond
Dan Derlacki
Cindy Kettering
Susie Maniscalco
Prevention Volunteers
Station 4
Captain
Engineer
Firefighter
Station 5
Captain
Engineer
Firefighter
Foundational Policy Documents
Organizations that operate efficiently are typically governed by clear policies that lay the
foundation for effective organizational culture.
These policies set the boundaries for both
expected and acceptable behavior while not discouraging creativity and self-motivation.
An effective set of operating rules and guidelines should, at a minimum, include two primary
types of policies:
1. Administrative Rules – This section contains the rules with which personnel in the
organization are required to comply. Administrative Rules, by definition, require certain
actions or behaviors in all situations. The Administrative Rules should govern all
department personnel: paid, volunteer, and civilian. Where rules require different
application or provisions for different classifications of members, these differences
should be clearly indicated and explained in writing. Specifically the administrative rules
should contain sections which address:
Public records access and
Harassment and discrimination
retention
Personnel appointment and
Contracting and purchasing
promotion
authority
Disciplinary and grievance
Safety and loss prevention
procedures
Respiratory protection program
Hazard communication program
Uniforms and personal
appearance
2. Standard Operating Guidelines (SOGs) – This section should contain “street-level”
operational standards of practice for department personnel. SOGs are different from
Administrative Rules in that variances are allowed in unique or unusual circumstances
where strict application of the SOG would be less effective. The document should
provide for a program of regular, systematic updating to assure it remains current,
practical and relevant. SOGs should be developed, approved, and enforced under the
direction of the Fire Chief.
Organizational Design
The delivery of fire suppression and rescue services is no more effective than the sum of its
parts. It requires efficient notification of an emergency and rapid response from well-located
facilities with appropriate equipment and fire apparatus appropriately staffed based on an
established deployment strategy.
The Bend Fire Department serves the combined service area from five strategically located
stations. All five stations are staffed with an on duty complement of career firefighters and are
equipped with medical units and fire apparatus. Four of these stations are staffed with a crew of
17
three, and the crew “swings” between the various units in the station, depending on the nature
of the emergency response.
The fifth station has a three-person crew for fire apparatus
responses and a two-person crew for a medic unit. The response patterns and deployment
methodology are further defined in the Service Delivery and Performance section of this report.
Reporting and Recordkeeping
The Bend Fire Department maintains all of its administrative records in a web-based,
commercial electronic records management system called Compli©. This robust system not only
maintains all of the records, it also maintains training records for each employee with electronic
notices sent to supervisory staff when an individual is due for recertification. Further, it verifies
that each employee has been notified and understands any new rules, regulations, policies,
procedures or guidelines issued by the city or the department.
The BFD’s financial records are maintained on an integrated database called HTE, which is
standardized throughout the city. The incident records management system is computer based,
as are employee exposure records, breathing apparatus maintenance records, hose testing
records, ladder testing records, pump testing records, breathing air cascade system testing
records, and combustible gas monitor testing and calibration records. Vehicle maintenance
records are maintained by the city garage, which performs the maintenance on the apparatus.
The district maintains its records on a desk top computer (appropriately backed up on a regular
basis) since the majority of the records required is comparatively small.
18
Staffing and Personnel Management
Personnel resources serve as the backbone of any emergency service provider and the Bend
Fire Department and Deschutes County RFPD #2 are no exception.
Regardless of the
deployment of stations or the availability of vehicles and apparatus, people are the resource that
places these other items into action, fulfilling the mission of the organization.
Staffing of today’s emergency service agencies may be configured in a variety of ways including
career, part-time, paid-on-call, and volunteer personnel. Decisions regarding which approaches
an agency adopts are dependent upon several factors, including availability of paid-on-call or
volunteer personnel, service demand, population density, socioeconomics and demographics of
the community, and financial resources. This section of the report reviews the department’s
personnel resources including administrative staffing, operational deployment of personnel,
scheduling and response performance.
Administrative and Support Staffing
Administrative and support staffing are those positions that, in many cases, are considered as
non-operational and responsible for the management and logistical support of the department’s
overall operations.
A career fire department like BFD needs a substantial complement of
administrative and support personnel to accomplish its service delivery mission. In this section
of the document, ESCI identifies the positions that have been tasked with administrative and
support duties over and above operational responsibilities and to provide a summary of the total
administrative and support contingent available within the subject agencies.
The fire department and the district employ a total of 11.5 personnel to address administrative
and support responsibilities. The fire chief, a city employee, works in close collaboration with
the DCRFPD #2 district manager to perform administrative tasks. The district manager is also
tasked to manage the department’s stations and other fixed facilities. Two deputy chiefs are
responsible for Training and Operations and a third is designated as the fire marshal. All three
report directly to the fire chief.
The deputy chief/fire marshal supervises four deputy fire marshals, each of whom performs a
variety of assigned fire prevention duties along with some operational responsibilities. Three
and one quarter administrative specialists and one ambulance billing technician conduct
administrative tasks; a logistics technician is responsible for equipment inventory, facility
repairs, and management of operating supplies.
Two half-time employees serve as EMS
19
program manager and EMS support. Finally, one part-time employee, working less than onefourth time, supports Geographic Information Systems.
The following table lists the agencies’ Administrative and Support Staffing configuration.
Figure 5: Administrative and Support Staffing
BFD
Fire Chief
1
District Manager
Deputy Fire Chief
Administrative Specialist
Ambulance Billing Technician
Logistics Technician
DCRFPD #2
Total
1
1
1
3
3
3.25
3.25
1
1
1
1
EMS Program Manager
0.5 FTE
0.5 FTE
EMS Support
0.5 FTE
0.5 FTE
<0.25 FTE
<0.25 FTE
GIS Support
Total Administrative and
Support Staff
Percent Administrative &
Support to Total Department
Personnel
10.5
1
11.5
16 Percent
Note: The above personnel totals do not include FTE equivalent positions listed as less than (<) 0.25
Analyzing the ratio of administrative and support positions to the total departmental personnel
can offer an appreciation of the relative commitment of resources dedicated to this function. An
appropriate balance of administrative and support positions to the operational staffing
component is important to the department’s ability to fulfill its mission and meet its
responsibilities.
Although no formal studies have been conducted to identify the optimum
personnel mix, it has been ESCI’s experience that a ratio of administrative and support staff to
total personnel in career fire departments fall within the 10 to 15 percent range. Agencies that
provide ambulance transportation can be expected to see a somewhat higher ratio due to the
additional workload incurred for ambulance program management, billing and collections.
Bend’s ratio of administrative and support staff relative to total personnel is 16 percent based on
the personnel listed in the preceding table. The calculation does not include the city-provided
administrative support.
To meet the multiple administrative demands that face a fire department, it is important to note
that a substantial amount of support is provided by the City of Bend. City assistance comes in
the form of human resources, payroll, and finance department support, along with a variety of
20
other administrative functions that benefit a city operated fire department and are not provided
in a non-city agency. Costs of these services are charged to the fire department budget, as
listed in the Fiscal Analysis section of this report. Should the Bend Fire Department change its
form of governance, addressing these support functions and related costs will be an important
consideration.
Operational Staffing
Operational personnel differ from administrative staffing in that they are the direct providers of
emergency response and other services to the citizens of the jurisdiction. Direct emergency
operations services in BFD and DCRFPD #2 are provided by 72 operational personnel. A
battalion chief supervises each of three 24-hour shifts and a captain is assigned to each of the
five fire stations on each duty rotation. A total of 17 engineers drive and operate the emergency
vehicles and 33 firefighter/paramedics provide direct delivery of fire and EMS response. In
addition, four deputy fire marshal positions assist with emergency response to the extent that
they are available. Operational staffing is listed in the following table:
Figure 6: Operational Staffing
BFD
Battalion Chief
Captain
Engineer
Firefighter/Paramedic
Deputy Fire Marshal
Total Operational Personnel
Percent of Operational Officers
to Firefighters
DCRFPD #2
3
15
17
33
4
Total
3
15
17
33
4
72
36 Percent
Included in the operational staffing configuration are 18 operational officers, resulting in a 36
percent ratio of officers to line personnel. The ratio is in an appropriate range.
ESCI compared the number of firefighters in BFD on a per 1,000 population basis. In the
following figure, the number of firefighters is compared to national and regional medians, as
identified by data from the National Fire Protection Association.5
5
National Fire Protection Association U.S. Fire Department Profile- 2011.
21
Figure 7: Firefighters per 1,000 Population
1.6
1.35
1.4
1.2
1
0.91
0.8
0.72
0.6
0.4
0.2
0
Regional Median
National Median
BFD
Based on the NFPA comparison, BFD staffing levels fall below the cited medians.
Staffing Allocation to Functions and Divisions
BFD is configured in five structural divisions, each of which reports to the Fire Chief. The
divisions are: Operations, Training, Administrative, EMS, and Fire Prevention.
The primary division is that of Operations and is supervised by a Deputy Chief of Operations.
Within the division are three shifts of primary response personnel, each of which operates under
the direct daily supervision of a battalion chief. Assigned to every shift are five captains, one
assigned to each station, and engineers and firefighter/paramedics. The shifts serve on a
rotation of 48 hours. The distribution of operational personnel on each shift is detailed in the
following table.
Figure 8: Field Operations Staffing Summary
Battalion Chief
Captain
Engineer
Total
22
A Shift
B Shift
C Shift
1
5
5
11
22
1
5
6
11
23
1
5
6
11
23
Total
3
15
17
33
68
Also in the Operations Division are a single logistics technician and a small complement of
volunteers, only one of which is an emergency responder.
The Training Division consists only of the Deputy Chief of Training. At times, additional training
staffing is made available to the division by light duty personnel or other available temporary
staffing.
In the Administrative Division, an administrative specialist IV reports to the fire chief. This
person supervises the balance of the division, which consists of one administrative specialist III
position, two administrative specialist I positions, and an ambulance billing technician.
An EMS program manager oversees the EMS Division. The manager is a half-time employee
who supervises a half-time EMS Support position.
The Medical Transport Team was
established to manage and respond to pre-scheduled non-emergency patient transports.
However, at this writing, the program is inactive and the positions are not staffed. Additional
detailed information about the Emergency Medical Services Division can be found in the
Support Programs section of this report.
Finally, the Fire Prevention Division operates under the direction of the deputy chief/fire
marshal. Reporting to the fire marshal are four deputy Fire Marshals, each of whom is assigned
to geographic areas of the city and district for the purposes of fire and life safety inspection
activities. Additional detailed information about Fire Prevention can be found in the Support
Programs section of this report.
Staff Scheduling Methodology
All administrative and support staff personnel work a standard 40-hour week schedule. The
scheduled work hours are from 8:00 AM to 5:00 PM, Monday through Friday.
Operational responders staff the five fire stations 24 hours a day. They are assigned to a
rotating work schedule that is referred to in the fire service as a “Modified Detroit” schedule.
Under this methodology, each shift member works for 48 hours continuously and is then off-duty
for 96 hours. While this is a growing trend in the fire service, it is a disturbing one. Ample
evidence indicates sleep deprivation can affect decision-making, and thus the safety, of people
23
in careers who have to make rapid decisions in a changing environment6. The Bend Fire
Department has a significant response demand in handling over 8,200 calls for service last
year. This can equate to a high call ratio in a given 24 hour period (the standard shift length for
firefighters). If high demand occurs late in the first 24 hours of a shift, it compounds the impact
in the second 24 hours.
Staffing with 24-hour shifts assures that adequate resources are available at all times to
respond to an emergency.
However, at times, incident frequency increases and response
workload is higher, typically during hours of the day when people are more active. The effect is
particularly felt with regard to emergency medical incidents and was expressed as a concern in
several stakeholder interviews conducted by ESCI.
One alternative that may be considered in the future is the use of Peak Activity Units (PAU).
Under this concept, response personnel are placed in service on days or during times of days
that are found to present higher call volumes than other periods of time. The approach can be a
means by which to enhance response times and manage peak workloads by staffing additional
emergency units on an as-needed basis. A PAU, which may be a fire engine, rescue,
ambulance, squad, or ladder truck, can be staffed for scheduled events, for periods of peak
demand, or to cover a response zone while other fire personnel attend training. Adding PAUs
as an adjunct to current staffing patterns adds flexibility to fire department emergency
operations.
Firefighter/EMS Staff Distribution
The way that response personnel are assigned to fire suppression, EMS, specialized services
or other roles varies between fire departments, generally based on agency size and workload.
Larger departments may separate EMS responder roles, for example, from those of fire or other
responsibilities.
In BFD, roles are integrated and all personnel assume fire, EMS and other responsibilities.
Distribution of personnel is based on station assignment and community risk. Due to a limited
number of available responders, response units are cross-staffed, meaning that a crew will
respond with either a fire engine, ambulance or other vehicle depending on the nature of the
6
Effects of Sleep Deprivation on Fire Fighters and EMS Responders, Diane L. Elliot, MD, FACP, FACSM
& Kerry S. Kuehl, MD, DrPH, Division of Health Promotion & Sports Medicine, Oregon Health & Science
University, Portland, Oregon, 2007
24
emergency to which they are dispatched. The following figure outlines how response personnel
are distributed by station and function.
Figure 9: Operational Staffing of Emergency Response Units
Station
Apparatus
Staffing
Station 301
Battalion Chief
Engine 321
Interface 341
Ladder 351
1
3
Cross staffed with engine crew
Cross staffed with engine crew when at minimum
staffing. Will be staffed as a dedicated Medic when
personnel are available.
Not staffed (reserve)
3
3
3
Reserve
2
Reserve
3
Minimum Staffing Level:
17 plus 1 Battalion Chief
Medic 371
Medic 370
Engine 322
Station 302
Interface 342
Medic 372
Engine 323
Interface 343
Station 303
Tender 333
Medic 373
Light Brush 346
Engine 324
Engine 326
Tender 334
Station 304
Interface 344
Medic 374
Medic 376
Engine 325
Tender 335
Station 305
Light Brush 345
Rescue 365
Medic 375
Full Staffing Level:
19 plus 1 Battalion Chief
The cross-staffing approach is employed out of necessity to make the most universal use of a
limited number of personnel, and the methodology is effective in doing so. The drawback,
however, is that some units are left un-staffed when the crew is responding on another vehicle.
25
Utilization of Career and Volunteer Companies
All emergency response staffing in BFD is accomplished by the use of full-time, career
personnel rather than volunteers. A single exception is an operational responder that was a
participant in the volunteer firefighter program that was in place in previous years. Opportunity
exists to redevelop a volunteer cadre of limited operational capability, such as wildland
firefighting or scheduled interfacility ambulance transportation, which should be further explored
for increased efficiency and/or capacity. The department is currently engaging in expansion of
the volunteer cadre.
Aside from emergency response, a small complement of volunteer personnel provides
administrative support. BFD reports that nine “non-combat” volunteer personnel assist with
community outreach activities and fire prevention/public education support.
Responsibilities and Activity Levels of Personnel
The assignment of responsibilities and tasks in a fire department may be assigned via a variety
of approaches based on the needs of the organization. In BFD, most routine responsibilities are
assigned by rank and position.
Where appropriate, duties may be modified based on an
individual’s particular area of interest or expertise.
Specialized duties, such as hazardous materials team participation, technical rescue, or other
specialized roles are sometimes allocated via a bid system.
In BFD, however, these
assignments are more typically apportioned based on personal interest and experience.
In addition to routine duties, several committees are in place to address designated areas of
need. A Training Committee is in place along with an EMS Quality Assurance Committee and a
departmental Safety Committee, as required by law. An Apparatus Committee meets on an asneeded basis to develop vehicle replacement or acquisition specifications.
26
Service Delivery and Performance
When the critical components of an emergency services agency are gathered in a timely
manner -- skilled people, properly equipped, and in sufficient quantities strategically
prepositioned -- successful mitigation of emergencies is almost assured.
Each of these
components is discussed as follows:
Skilled People – Support Programs (Training)
Properly Equipped – Capital Assets, Capital Improvement, and Replacement Programs
(Apparatus)
In Sufficient Quantities -- Service Delivery and Performance (Resource Concentration)
Strategically Prepositioned -- Capital Assets, Capital Improvement, and Replacement
Programs (Facilities)
The core mission of the Bend Fire Department is to respond quickly and effectively to
emergency responses within the service area and to maintain readiness to respond while not
engaged in actual response. BFD has developed a 2011-2013 Deployment Plan, which tracks
and analyzes numerous data sets to determine the best locations for the response platforms
(fire engines, ambulances, ladder trucks, and other specialized pieces of equipment) to be
positioned.
The analysis details response demand trends (number, type, time and location of calls for
service), resource distribution (where fire stations, emergency vehicles and personnel are
positioned), resource concentration (how much of each type of resource is positioned close
enough to deliver the most effective response, given the type of risk involved), response
reliability (how often the resources are actually available to respond to the calls to which they
would normally be assigned), response performance (how well the system works to cover the
demands for service), incident control and management methods (how well the resources are
managed to effect a positive outcome).
The Bend Fire Department Deployment Plan is a
thorough analysis of these factors. With the addition of contemporary data through 2012, these
factors are summarized to establish baseline service capability. Contrasting current capabilities
against a change in governance model aids in determining whether service is helped or harmed
by the change.
The population density of the two agencies is reflected in the following map. As is expected, the
greatest urban density is contained within the city limits of Bend, with a small urban cluster
southwest of the city.
27
Figure 10: BFD Population Density, 2010 Census Data
Response Demand
During 2012, the BFD responded to 8,201 emergency and non-emergency incidents.
The
following maps illustrate the number and distribution of those responses during this time period
by type of response. Figure 11 reflects calls for service of all types.
28
Figure 11: BFD Incident Density-All Incident Types, 2012
It is important to distinguish between calls for service of all types (Figure 11) and emergency
calls for service of all types (Figure 12). “Service calls”, which are not emergent in nature, make
up a sizable portion of BFD’s demand for service (10 percent). This number is within the norm
for fire departments of its size. These calls for service offer an opportunity to reduce demand
the fire department experiences. By definition, they are not emergencies and therefore may be
handled in other, more efficient ways. While it will never be possible to eliminate service calls,
false alarms or good intent calls, they can be reduced with education and changes in how the
calls are screened by the dispatch center and how agency responds to them. BFD has already
29
modified its response to fire alarms in sprinklered buildings by involving fire prevention staff in
the response, thus reducing its reliance upon the full array of emergency resources.
Figure 12: BFD Emergency Incident Density-All Incident Types, 2012
It is obvious that the demand for service is population driven. By far, the highest concentration
of responses occur within the city limits of Bend (82.1 percent) as compared to responses to
Deschutes County Rural Fire Protection District #2 (14.8 percent) or out-of-district responses
(3.1 percent). The incidence of fires is distributed over this same incident density map (Figure
30
13), and the fires tend to follow the population density, with the greatest concentration in the
urban area.
Figure 13: BFD Fire Incidents over Incident Density, 2012
Likewise, emergency medical services (EMS) also follows population density, as Figure 14
reflects.
31
Figure 14: BFD EMS Incident Density, 2012
The incident maps illustrate why fire department resources (fire stations, emergency equipment
and firefighter/paramedics) are situated around the urban core.
Resource Distribution
The fire station distribution tends to dictate where emergency vehicles and personnel respond
from.
Thus, careful analysis of fire station location in relation to current and expected
community growth are foundational to long-term success (discussed in greater detail in the
32
Facilities section of this report). The existing fire stations appear to be well placed to provide
optimum response to the risks the community faces, as evidenced in the following map.
Figure 15: BFD Eight Minutes Travel, Current Station Locations
The stations are positioned in an “outside-in” configuration. The stations ring the perimeter of
the urban core (except Station 301, which is inside the core), allowing them to converge into the
urban core together, where higher levels of resources are more routinely needed.
It also
33
positions the resources to respond out and away from the urban core quickly without getting
bogged down in traffic congestion. This is a very efficient distribution of facilities. By examining
the eight-minute travel time reach for each fire station, it is clear that the vast majority of the two
jurisdictions are theoretically covered by a fire station eight minutes or less away. Over 90% of
the road network (approximately 875 road miles) are within eight minutes of a BFD station. This
presumes the station is staffed and equipped with the right complement of resources and is
available for an immediate response.
High demand placed on a single resource decreases the availability of that resource. Further, it
has a “trickle out” effect, since calls for service where the primary resource is unavailable
requires the next closest resource to handle it. This creates another gap in the system. As this
impact spreads with more and more demand shifting, the entire jurisdiction is negatively
impacted. Thus, a simple call for service in the south can ultimately create significant
consequences to the north, east, and west areas as additional calls for service occur. This risk
remains until all of the resources are once again available for response and are back in their
assigned response areas (referred to as “first due” areas).
Resource Concentration
Once it is determined that the resources are distributed properly, the next consideration is the
concentration of those resources to address the risks and whether sufficient personnel can be
assembled to address the critical tasks which must be addressed to successfully and efficiently
resolve the emergency. BFD identified the risks in the service area as:
Severe Weather
Topography
Wildfire Potential
Water Supply Challenges
Significant Transportation Corridors (Air, Water, Rail, Highway)
Response Route Barriers/Impediments
High Density/Commercial Development
After the risks are identified, a critical task analysis is performed. This analysis includes a list of
the activities which must be performed immediately and simultaneously in order to have a
successful outcome. The critical task analysis determines the effective response force required
to ensure that successful outcome. This was performed by BFD and is contained in the 20112013 Deployment Plan.
34
Figure 16 illustrates the overlap between stations after eight minutes of travel time. All five
stations are capable of a unit arriving in eight minutes travel in the center of the city, four units
generally in the southern portion of the city, three units in a majority of the city, and two units in
all but a few isolated pockets in the southern and western fringes. The district enjoys one or
two-unit response concentrations throughout the majority of its jurisdiction.
Figure 16: BFD Station Concentration at Eight Minutes’ Travel
35
The personnel assigned to those units amass to form the effective response force, which is
identified in the critical task analysis. The critical task analysis was performed by BFD staff for
the 2011-2013 Deployment Plan and is summarized in the following table.
Figure 17: Critical Task Analysis Summary
Bend Fire Dept. Critical Task Analysis Summary
Minimum
Incident Type
Personnel
Fire
Structure Fire
Structure Fire -- Residential
14
Structure Fire -- Commercial
18
Minor -- Single Unit Fire
3
Wildland Fire
13
EMS
Medical
2
Medical -- Non-Life Threatening
2
Medical -- Life Threatening
5
Vehicle Crash
5
Vehicle Crash -- Entrapment
9
Technical Response
Technical Rescue
Swift Water Rescue -- Initial Response
12
Swift Water Rescue -- Sustained
21
Ice Rescue
12
Steep Angle Rescue -- Initial Response
3
Steep Angle Rescue -- Sustained
12
Confined Space Rescue
12
Trench Rescue
12
Hazardous Materials
Hazardous Materials -- Minor
3
Hazardous Materials -- Full Response
14
The effective response force must be assembled in a timely manner to positively affect the
outcome of the emergency.
Some of the responses build on others, such as steep angle
rescue, which has an initial response of three personnel but requires 12 to actually use the
technical skills required to safely rescue a victim from a ravine or other precarious perch. Most,
however, require the full complement of personnel to successfully mitigate the emergency.
36
Figure 18 lists the effective response force and the assembly time objective for each of the three
major response types.
Figure 18: Current BFD ERF Response Time Objectives
BFD
Call Type
Structure Fire
Wildland Fire
EMS (2 units)
Effective
Response
Force
14
6-10
5+
DCRFPD #2
Objective
(Minutes)
21
15
13.5
Effective
Response
Force
14
6-10
5+
Objective
(Minutes)
26
22
18
The following map illustrates the total assembly of personnel possible by area, given an eightminute travel time. This assumes the current staffing configuration. Any changes to the current
configuration changes the staffing assembly within that eight-minute travel window.
37
Figure 19: BFD Personnel Concentration at Eight Minutes Travel
The map vividly depicts that BFD can theoretically assemble sufficient personnel in eight
minutes travel time in a majority of the city core except commercial structure fires and swift
water rescue sustained operations. These types of responses rely heavily on assistance from
neighboring agencies to complete. The outcomes for structure fires and cardiac arrests in the
urban core are more likely to be positive, given the ability of the necessary staff to assemble
within eight minutes.
38
Further away from the city core, it is clear that additional time is required to achieve an effective
response force for most of the response types. In the extreme north, west, and south of the
service area, the only effective response force which can be assembled in eight minutes is for
non-life threatening medical emergencies, car fires, and other minor responses, as well as initial
response to some technical responses. The outcome for structure fires and cardiac arrest
responses for these areas is not likely to be positive given the difficulty in assembling the
necessary personnel in that same eight-minute window. Exceeding eight minutes results in
more destructive fires (see Figure 22: Fire Growth vs. Total Response Time) and poor
survivability of cardiac arrests (Figure 23: Cardiac Arrest Sequence).
It is critical to note, however, that these resources are assumed to be available for immediate
response from their assigned stations. Further, the eight-minute travel time does not include the
“turn-out” time or call processing time. This is the time it takes for the crews to hear the
dispatch of the call, put on the appropriate safety gear, clearly determine the route they must
take to get to the emergency, board the appropriate emergency vehicle, and start the response
(travel). The BFD has established a turnout time goal of 90 seconds for emergency responses.
Figure 20 depicts the actual turnout time performance since 2009.
Figure 20: Turnout Time, January 2009 through October 2012
4:19
3:50
3:21
2:52
2:24
7am-7pm
1:55
7pm-7am
1:26
80%
0:57
0:28
0:00
2009
2010
2011
2012
It is clear that the 90-second turnout goal has been unattained since at least 2009. While
station configuration, proximity of activity areas to the vehicles, and selection of the appropriate
response vehicle all contribute to turnout time delays, it is clear that the goal is not likely to be
39
attained without changes.
Turnout time is within the direct control of the fire department.
Closely monitoring and reporting turnout times monthly for each crew at each station on each
shift helps identify norms and significant deviations. Providing this information to all crews helps
them self-assess and problem-solve around structural issues that cause unnecessary delays.
Outliers can be isolated, studied closely, and addressed, improving turnout times for the BFD.
While the 90-second turnout time for emergency responses is a very typical objective in the fire
service, the vast majority of fire departments across the nation have difficulty achieving it. The
turnout time should be closely monitored to encourage improvement.
Response Reliability
Both emergency response workload and other response unit commitments, such as training, will
reduce the percentage of time a unit is available to respond to an emergency within its primary
service area. With BFD’s 80th percentile response performance objectives, any reliability less
than 80 percent will make achieving response time objectives difficult if not impossible for that
station.
The following chart lists reliability for each station area and for each agency.
This chart
evaluates the percentage of incidents to which a response unit from the appropriate station was
available to respond to its first due area.
Figure 21: Station Reliability by Agency, October 2011 through September 2012
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
City Emergencies
DCRFD#2
Emergencies
40
301
84%
302
0%
303
73%
304
87%
305
75%
100%
81%
76%
91%
62%
Station 301 has a relatively small first due area in DCRFD #2. The 100 percent station reliability
can be attributed to a small statistical data set. Station 302 does not have a first due area within
the city limits and therefore displays a station reliability of 0 percent within the city. The station
with the greatest reliability is Station 304 at 90 percent for the city. This is primarily due to the
presence of two units at this station, providing depth of response capacity.
Response Performance
Most fires within buildings develop in a predictable fashion, unless influenced by highly
flammable material. Ignition, or the beginning of a fire, starts the sequence of events. It may
take several minutes, or even hours, from the time of ignition until a flame is visible. This
smoldering stage is very dangerous, especially during times when people are sleeping, since
large amounts of highly toxic smoke may be generated during this phase.
Once flames do appear, the sequence continues rapidly. Combustible material adjacent to the
flame heat and ignite which, in turn, heats and ignites other adjacent materials if sufficient
oxygen is present. As the objects burn, heated gases accumulate at the ceiling of the room.
Some of the gases are flammable and highly toxic.
The spread of the fire from this point continues quickly. Soon the flammable gases at the ceiling,
as well as other combustible material in the room of origin, reach ignition temperature. At that
point, an event termed “flashover” occurs; the gases and other material ignite, which in turn
ignites everything in the room. Once flashover occurs, damage caused by the fire is significant
and the environment within the room can no longer support human life.
Flashover usually occurs about five to eight minutes from the appearance of flame in typically
furnished and ventilated buildings.
Since flashover has such a dramatic influence on the
outcome of a fire event, the goal of any fire agency is to apply water to a fire before flashover
occurs.
Although modern codes tend to make fires in newer structures more infrequent, today’s energyefficient construction (designed to hold heat during the winter) also tends to confine the heat of
a hostile fire. In addition, research has shown that modern furnishings generally burn hotter
(due to synthetics).
In the 1970s, scientists at the National Institute of Standards and Technology found that after a
fire broke out, building occupants had about 17 minutes to escape before being overcome by
41
heat and smoke. Today, that estimate is as short as three minutes. The necessity of effective
early warning (smoke alarms), early suppression (fire sprinklers), and firefighters arriving on the
scene of a fire in the shortest span of time is more critical now than ever.
Perhaps as important as preventing flashover is the need to control a fire before it does damage
to the structural framing of a building. Materials used to construct buildings today are often less
fire resistive than the heavy structural skeletons of older frame buildings. Roof trusses and floor
joists are commonly made with lighter materials that are more easily weakened by the effects of
fire. “Light weight” roof trusses fail after five to seven minutes of direct flame impingement.
Plywood I-beam joists can fail after as little as three minutes of flame contact. This creates a
dangerous environment for firefighters.
In addition, the contents of buildings today have a much greater potential for heat production
than in the past. The widespread use of plastics in furnishings and other building contents
rapidly accelerate fire spread and increase the amount of water needed to effectively control a
fire. All of these factors make the need for early application of water essential to a successful
fire outcome. A number of events must take place quickly to make it possible to achieve fire
suppression prior to flashover. The following figure illustrates this sequence of events.
Figure 22: Fire Growth vs. Total Response Time
42
As is apparent by this description of the sequence of events, application of water in time to
prevent flashover is a serious challenge for any fire department. It is critical, though, as studies
of historical fire losses can demonstrate.
Cardiac arrest is the most significant life-threatening medical event in emergency medicine
today. A victim of cardiac arrest has mere minutes in which to receive lifesaving care if there is
to be any hope for resuscitation.
The American Heart Association (AHA) issued a set of cardiopulmonary resuscitation guidelines
designed to streamline emergency procedures for heart attack victims, and to increase the
likelihood of survival. The AHA guidelines include goals for the application of cardiac
defibrillation to cardiac arrest victims.
Cardiac arrest survival chances fall by 7 to 10 percent for every minute between collapse and
defibrillation. Consequently, the AHA recommends cardiac defibrillation within five minutes of
cardiac arrest.
As with fires, the sequence of events that lead to emergency cardiac care can be graphically
illustrated, as in the following figure.
Figure 23: Cardiac Arrest Sequence
43
The percentage of opportunity for recovery from cardiac arrest drops quickly as time
progresses. The stages of medical response are very similar to the components described for a
fire response.
Recent research stresses the importance of rapid cardiac defibrillation and
administration of certain medications to improve the potential for successful resuscitation .
Cardiac arrest and critical trauma are often used as the standard measure of time critical events
but the American Heart Association has also established other time critical medical
emergencies that benefit from rapid response and treatment. It is important to recognize that
while these events are immediately life threatening, they are statistically rare, making up less
than 3 percent of the total calls for service. It is also important to note that cardiac arrest is not
exclusively a risk for the aged. It can occur as a result of numerous types of trauma or many
types of medical conditions which can degrade over time into cardiac arrest.
If demand is appropriately managed, resources are appropriately distributed and in sufficient
concentrations, then time becomes the critical factor which determines the outcome of an
emergency.
Figure 24: Historical Arrival Time of First Dues Units by Agency, EMS & Structure Fire
EMS Incidents - First Arriving Vehicle
Zone
BFD
DCRFPD
#2
44
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
90th
10:06
10:17
10:00
9:37
9:41
9:35
9:28
9:53
10:30
80th
8:47
9:03
8:25
8:17
8:16
8:18
8:11
8:26
8:57
Avg.
6:51
6:58
6:24
6:13
6:09
6:16
6:05
6:35
7:00
2003
2004
2005
2006
2007
2008
2009
2010
2011
15:06
15:00
14:40
14:00
13:44
13:31
12:57
12:57
14:26
13:03
12:32
12:31
12:13
12:00
11:48
11:42
11:45
12:42
10:06
9:43
9:20
9:08
8:56
8:39
8:50
9:00
9:58
Structure Fires - First Arriving Vehicle
Zone
BFD
DCRFPD
#2
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
90th
10:40
9:08
9:15
10:01
8:53
9:37
9:26
9:59
9:12
80th
8:55
8:20
7:58
8:53
8:21
8:50
8:40
8:26
8:34
Avg.
7:00
6:59
6:46
7:09
6:29
6:31
6:35
7:10
7:02
2003
2004
2005
2006
2007
2008
2009
2010
2011
14:32
15:32
12:56
13:12
13:35
12:51
12:02
12:58
12:24
12:59
12:11
10:35
10:54
11:44
12:11
11:05
12:25
11:19
10:00
10:03
9:21
9:16
8:42
9:09
8:41
9:29
9:57
The gray columns in
Figure 24 indicate the total elapsed response time, for EMS and for fire, for each of the last nine
years (2012 data had not been compiled as of the writing of this report). The red numbers
reflect years where the response time objective for that response type was not met. The trends
reflect a generally flat trajectory in the city for both Fire and EMS and a slightly improving trend
for the District.
It should be noted that in 2011, the EMS response performance for the city failed to achieve the
objective of eight minutes forty-five seconds (08:45) 80 percent of the time. The structure fire
objective for 2011 was met in the city. Likewise, the EMS response performance for the district
failed to achieve the objective of twelve minutes, fifteen seconds (12:15) 80 percent of the time.
The structure fire objective for 2011 was met in the district.
Incident Control and Management Methods
The BFD Deployment Plan lists the following Risk Statement:
We respond to calls for service with the belief that we will have a positive impact on the
lives of the community we serve.
It is expected that we will risk our safety to save the life of a fellow human being.
With calculated safety precautions, we may risk our safety to protect savable property.
We will not risk our safety for life or property that is clearly lost.
This philosophy guides decisions made in the field by incident commanders daily.
Thus,
citizens should expect aggressive action by their firefighters when a savable human life is at
risk. Further, the community should expect their firefighters to use their training and expertise to
manage their own safety while rescuing persons or saving property which are savable. The
community should not expect their firefighters to set their own safety concerns aside when a life
or property is not savable.
Beyond these risk statements, the BFD has a command and control structure in place which
appropriately manages the multiple tasks which must be performed during complex
emergencies. The span of control in the department is appropriate at an average ratio of 1:3
supervisors to subordinates.
This ensures appropriate safety during critical, high risk
operations.
45
Mutual and Automatic Aid Agreements
Mutual aid is defined as assistance requested from neighboring agencies once the need is
determined by the receiving agency. All of the fire agencies in Deschutes County are party to a
master mutual aid agreement, allowing any agency to request assistance from any other
agency. Granting that request is not required (based on availability of sufficient resources for
the agency receiving the request to send resources) but is seldom denied.
Automatic aid is defined as a preprogrammed response to an emergency using neighboring
agency resources to augment the host agency’s response. This is determined in advance of an
emergency and is provided for through the dispatch protocols. In this case, a host agency can
count on an immediate response from a neighboring jurisdiction without the need for a request
for assistance. These agreements are typically designed for systems which ignore geopolitical
boundaries and provide reciprocal responses to overlapping areas, regardless of jurisdiction.
They are also usually designed to provide some sort of equity between the participating
agencies to avoid any form of subsidy.
In Bend’s case, mutual aid was provided by BFD 63 times last year and received 43 times. The
balance is fairly even at 59 percent given to 41 percent received.
46
Support Programs
In the following section, ESCI was tasked to review and make overall observations of a variety
of support programs that are necessary to accomplish the fire department’s mission.
Training
The BFD training program operates under the direction of a Training Officer who holds a deputy
chief rank.
The officer is well qualified and operates an effective training program.
Administratively, the training program operates under an established set of program goals and
objectives, along with several departmental “Policy, Procedure and Instruction” documents that
relate to firefighter training. A review was completed of the basic competency areas that should
be included in a training program, the results of which are summarized below.
Figure 25: General Training Competencies
General Training Competencies
Incident command system
certification levels defined
Accountability procedures
Policy and procedures
Safety procedures
Recruit academy
Special rescue (high angle,
confined space, etc.)
Hazardous materials
Wildland firefighting
Vehicle extrication
Defensive driving
Use and care of small tools
Radio communications
EMS skills and protocols
Observations
7
Training meets minimum NIMS requirements. All personnel are
trained to NIMS 100, 200 and 700 as a minimum.
Passport-type system is used
Included in training
Included in Standard Operating Guidelines
Conducted on an as-needed basis. Academy consists of an 8
week schedule. Target is Firefighter I certification by the end of
the academy and FFII by the end of the probationary year.
Confined space, high angle, swift water, ice and trench rescue
training provided at the Awareness and Operations levels. Some
personnel area also trained at the technician level.
Awareness and Operations levels only
Minimum standard of NWCG Wildland Firefighter I
Yes
8
EVAP program
Yes
Yes
Ongoing Continuing in Education per state requirements.
At the entry level, new firefighters are incorporated into the training program to enhance the
skills and abilities that they have obtained previously. As a minimum standard, new hires are
trained to the Firefighter I level as defined by state9 and national10 standards. Upon completion
7
National Incident Management System.
Emergency Vehicle Accident Prevention training program.
9
Oregon Department of Public Safety and Standards (DPSST).
10
National Fire Protection Association (NFPA).
8
47
of probationary training, they are required to achieve Firefighter II level certification by the end of
their first year of service.
Subsequent to probationary training, ongoing education standards are established by rank, with
associated requirements defined for each position. A task book is in place for each rank, which
lists educational and skill development requirements and requires verification of completion.
Most training is conducted by in-house instructors under the direction of the Training Chief.
Outside instructors are recruited and used when possible and personnel are encouraged to
attend training outside of the department.
Funding availability for outside instructors and
classes is limited, often compromising the personnel’s ability to train beyond the department’s
structured program.
The department is fortunate to have excellent training facilities. The Training Center consists of
a good sized classroom that seats 32 and can be divided into two smaller rooms. High quality
audio visual equipment is on hand and a video conferencing system effectively accommodates
training delivery from the Training Center directly to all of the fire stations. Adjacent to the
center is a large five-story drill tower, along with a variety of props and related training tools.
Administratively, the Training Division consists only of the Deputy Chief of Training. There is no
other support for program operations or for administrative assistance that is directly assigned to
the division.
ESCI found that the BFD Deputy Chief of Training operates an effective, high quality training
program with very limited resources. The program is well organized and excellent training
resources are available. The following areas of concern were noted:
The ability to provide personnel coverage so that on-duty crews can complete training
sessions is limited. As a result, drills cannot be completed at times. The problem was
raised as a concern repeatedly in internal stakeholder interviews.
Available funding to send personnel to external training is insufficient to meet needs, in
the opinion of several stakeholders. The importance of outside educational opportunities
is reportedly overshadowed by financial limitations
Emergency Medical Services
The City of Bend Fire Department has made a substantial commitment to the delivery of
emergency medical services to residents of the city as well as Deschutes County Fire District #2
and surrounding areas. BFD provides Advanced Life Support (ALS) services with personnel
48
responding on its fire engines as well as ambulances that treat and transport patients to the
hospital.
Because EMS response constitutes the majority of the department’s emergency activity,
resulting in a high number of incident responses, supporting the program adequately is critical.
The EMS Division, exclusive of operational response personnel, consists of a part-time EMS
administrator and an ambulance billing technician. The EMS administrator reports to the fire
chief and oversees all aspects of the EMS Division with some clerical support provided by other
administrative staff.
Medical Control is provided by a Physician Advisor under contract with the City. The Physician
Advisor has established written protocols that define medical operating practices that are to be
conducted in the field.
The protocols are reinforced by a combination of case reviews and in-
service training that is provided by the Physician Advisor. Importantly, a Quality Assurance
process is in place to review, monitor and make necessary corrections to field practices. The
process, however, has been limited by financial constraints in an effort to contain overtime
costs.
Support for EMS operations is limited, considering the magnitude of the program and impact
that EMS services have on the organization overall. The Fire Chief has proposed conversion of
the part-time EMS administrator’s position to a full-time role in the upcoming budget year. The
initiative warrants positive consideration.
Fire Prevention
Fire prevention and public education are some of the most important services that a fire
department provides. BFD has recognized the importance of the programs and developed an
effective and well managed Fire Prevention Division.
The Division operates under the direction of a deputy chief who is also designated as the City’s
fire marshal. Four deputy fire marshals report to the fire marshal and are tasked with the
performance of new construction plan review, existing occupancy fire inspection, and public
education activities.
The authority for fire code enforcement is established in the form of
adoption of the 2010 Oregon Fire Code, the most current edition available. In addition to the
code, the city has adopted several supplemental ordinances that address hazardous materials
storage and water flow requirements for certain occupancies, a practice that is common to most
fire departments.
49
Requests for building permits for new structures are processed through the respective City and
County Building Departments, but the fire department completes a review prior to issuance to
assure fire and life safety concerns are met. In addition, inspections are performed during and
upon completion of new buildings to assure safety compliance.
In existing commercial, assembly, and institutional buildings, the fire department conducts a
process of ongoing fire safety inspections. The inspection program is essential to assuring that
buildings continue to be maintained in a safe condition. The Division’s stated goal is to inspect
all applicable occupancies annually, which is consistent with industry standards and best
practices. However, an estimated 75 percent of buildings are currently inspected as a result of
staffing reductions in the Division.
Another key component of effective fire prevention programs is that of public education. Within
the Division, one of the deputy fire marshals is assigned to public education duties. A review of
the program areas that are addressed by the program found that most of the fundamental
elements that should be included are accommodated on an ongoing basis as an additional duty
assigned to the Deputy.
The Fire Prevention Division has been subject to staffing reductions in recent years. Where one
fire marshal and six deputy fire marshals previously staffed the Division, there are now four
deputy positions. As a result, the ability of the fire marshal to achieve the goal of conducting
inspections of 100 percent of applicable occupancies annually is not obtainable. A decrease in
inspection frequency may result in an increase in fire occurrence in the future and, as the
community continues to grow, the problem will expand correspondingly. Future consideration to
the restoration of previous fire prevention positions is warranted. It is important to note that the
Division is almost entirely self-supporting through a combination of revenues realized by plan
review and sprinkler connection fees.
Logistics
A fire department is highly dependent on a variety of equipment, supply, and maintenance
needs critical to assuring its ability to have the right tools on hand when they are needed.
Smaller agencies generally meet logistics needs with line level personnel while larger
organizations may have an entire logistics division to meet these requirements.
BFD is fortunate to have a dedicated logistics technician position. The individual is responsible
for tracking, ordering, and stocking of supply inventories; maintenance of facilities; and
50
equipment repairs. In addition, the logistics technician coordinates and assists with annual fire
hose, ladder, and fire pump testing.
A moderately sized warehouse is located adjacent to the Training Center, storing an array of
replacement equipment, expendable supplies, maintenance, and equipment testing items.
Operating from the building, the logistics technician is able to keep critical supplies on hand to
be distributed to fire stations when needed and maintains inventory and issuance records. The
approach is effective and should be maintained.
Finance/Payroll
Processing financial records, payments, and payroll is complex and time consuming. BFD
actively receives purchase orders and manages invoices internally, which are then referred to
the City of Bend’s Finance Division for payment and final accounting. The majority of financial
processing and record keeping is a Finance Division function.
Payroll is also processed through the Finance Division, but with a high level of involvement on
the part of the fire department. The BFD administrative specialist/assistant to the fire chief is
closely involved in payroll matters. Timesheet issues and necessary payroll corrections are
generally addressed at the department level and are then passed on to the City Finance
Division for final processing.
Within the City of Bend, all financial functions are closely integrated with the Finance Division.
Budget development is initiated within the fire department and subsequently relayed to the City
Manager and Finance Division for inclusion in the overall city budget process, review by a
citizens’ Budget Committee, and final approval by the City Council.
The process differs in the Fire District, which operates under a different governance model. The
District Manager is designated as the Budget Officer and develops a recommended budget
which is then submitted to a ten-member Budget Committee much like occurs in the City. Once
reviewed, the budget goes to the Board of Directors of the Fire District for final review and
approval.
Should a change in governance occur that places financial responsibility on the DCRFPD #2
Board of Directors, these and many other financial and payroll related tasks will no longer be
provided by the City of Bend unless otherwise agreed. With financial needs being so critical to
success of the organization, these requirements will need to be carefully evaluated and a
51
determination made as to whether they will be handled internally by the District or as a
contracted service.
Human Resources
Another critical support function is that of Human Resources (HR) services. Functions include
the establishment of employment practices, testing, selection and hiring of new employees,
disciplinary procedures, administration of employment and pension programs, to name a few.
The Bend Human Resources Division operates within the Administrative Services Department.
While conducting interviews with Human Resources representatives, ESCI found that the
Division is well developed and organized and serves the employees of the City effectively.
One of the most important Human Resources roles is that of maintaining personnel-related
policies and procedure. This is accomplished in the form of a city Employee Handbook, issued
to each member of the organization upon hire and accessible electronically via a web based
system. The Division also maintains a host of essential records including employment history,
performance evaluations, and accident or exposure records.
HR further supports both employer and employee when challenges arise.
A disciplinary
process is in place that assures quality performance while protecting employee rights and
improvement and counseling services are also administered through the Division.
Like finance and payroll functions, Human Resources administration is an essential component
of the organization. The fire department depends heavily on the services received from HR
and, should another governance approach be adopted, the need will continue to exist. A new
organization will need to establish its own Human Resources function or, alternatively, contract
for services from the City of Bend, another agency, or a private provider.
Legal
Legal services are needed to first prevent issues and disputes and, secondly, to address them
properly when they arise. In the City of Bend, a city attorney, working with an assistant city
attorney and a legal assistant, seek to proactively prevent or resolve disputes on behalf of the
City Council.
An additional role of the City Attorney’s office is one of advising the city council, city manager,
and department heads on legal matters in order to enable them to perform their functions in a
52
way that is consistent with applicable standards and laws. When disputes do arise, the office
will take the lead on resolving matters such as contract disputes, personnel challenges, contract
and tort claims, and land use-related issues.
The need for legal representation will not be diminished under a change in governance, only redirected. A fire district experiences the same needs for legal services, which are often provided
by an external attorney or firm or contracted to a public agency like the City of Bend.
Information Technology
Information Technology (IT) services are currently provided to the fire department by the City’s
Information Technology Division.
This division manages information systems including
computers, software, networks and Geographic Information Systems, all of which are essential
to the smooth operation of the fire department.
Due to their complexity, the management of IT equipment and services is challenging, and it is
difficult to fully satisfy all end user needs. In the course of internal stakeholder interviews,
frequent frustration was voiced to ESCI regarding the provision of IT-related services. Both fire
department and IT Division personnel indicated that relationships are strained and that issues,
some significant, have arisen as a result. The primary issue expressed by line personnel was
the loss of an IT representative (and associated expertise) that was previously assigned to the
fire department. While a complete analysis of information technology services is beyond the
scope of this project, the issues were raised with sufficient frequency and energy to warrant
further review by the City.
Finally, as is the case with the other support services discussed in the section, a modified
organization will need to evaluate alternatives for addressing IT needs. This service will be
required in a new governance structure, whether outsourced, provided internally, or contracted
with the City.
Communications
An essential link between the citizen experiencing and emergency and the help that is needed is
the 911 emergency communications system. As is commonly found in today’s fire and EMS
agencies, 911 services in the Bend area are provided regionally, by the Deschutes County 911
Service District.
The district operates under the direction of a director who reports to the
Deschutes County Administrator, as well as to an Executive Board that serves in an advisory
capacity to the administrator.
The organization provides dispatching services to all of the
53
emergency services agencies in Deschutes County with the exception of the Oregon State
Police.
Regardless of a future change that may occur with regard to the Bend Fire Department and
Deschutes County Rural Fire Protection District #2, emergency dispatching services will need to
continue to be provided by the current 911 Service District, as it is the only agency available to
address the need. There is no need for these services to change with a change in governance.
54
Capital Assets, Capital Improvement, and Replacement Programs
Three basic resources are required to successfully carry out the mission of a fire department ―
trained personnel, firefighting equipment, and fire stations.
No matter how competent or
numerous the firefighters, if appropriate capital equipment is not available for the use by
responders, it is impossible for a fire department to deliver services effectively. Two primary
capital assets that are essential to the provision of emergency response are facilities and
apparatus (response vehicles).
ESCI reviewed the BFD fire stations and administrative facilities along with its response fleet.
The findings are summarized in the following pages and any areas of concern that were
observed are identified.
Facilities
Fire stations play an integral role in the delivery of emergency services for a number of reasons.
A station’s location will dictate, to a large degree, response times to emergencies. A poorly
located station can mean the difference between confining a fire to a single room and losing the
structure.
Fire stations also need to be designed to adequately house equipment and
apparatus, as well as meet the needs of the organization, its workers, and/or its members. It is
important to research need based on call volume, response time, types of emergencies, and
projected growth prior to making a station placement commitment.
The City of Bend and Deschutes County Fire Protection District #2 have made a solid
commitment to establishing and maintaining high quality facilities. Of the five fire stations, four
were built within the last 11 years, as well as the Training Center and Administration building.
One station, in Tumalo, is aging, having been constructed in the 1970s and partially remodeled
in the late 1990s.
ESCI toured the BFD Stations and administrative facilities, resulting in the observations listed in
the following tables.
55
Figure 26: West Station - 301
Station 301 is located in the
western portion of the service
area and includes three drivethrough apparatus bays. Living
space
for
seven
24-hour
response personnel is on the
second floor with individual
sleeping rooms and a large, well
equipped kitchen and day-room
area. An inspector’s office is in
proximity to a meeting room that
can accommodate ten people
and a community police office is
also present. A ladder truck, one
engine, a water tender and two
medic units are housed in the
station.
Survey Components
1. Structure
A. Construction type
B. Date
C. Seismic protection/energy audits
D. Auxiliary power
E. Condition
F. Special considerations (ADA, mixed
gender appropriate, storage, exhaust
removal, etc.)
2. Square Footage
3. Accommodations
A. Exercise/workout
B. Kitchen/dormitory
C. Lockers/showers
D. Training/meetings
E. Washer/dryer
4. Protection Systems
A. Sprinkler system
B. Smoke detection
C. Security
D. Apparatus exhaust system
56
Observations
Wood frame and masonry
2001
When designed
Automatic starting emergency generator
Excellent
The station is appropriately configured for
mixed gender use, is ADA accessible, and is
adequately designed for its intended use
12,000
Adequate, well-appointed exercise room
Contemporary facilities with commercial
kitchen appliances equipped with automatic
shut-offs. Well-appointed individual sleeping
rooms for seven personnel
Adequate, mixed gender locker rooms
A training room is also made available for
public meetings and is well-equipped
Provided
The building is 100% protected by a fire
sprinkler system
Smoke detection covers the entire station
All doors have combination locks
Primary apparatus have on-board exhaust
control devices
Figure 27: Tumalo Station - 302
Station 302 is the only facility that
has not been recently updated. It
consists of three back-in apparatus
bays and a very small office area.
Sleeping for three is available in a
common
dormitory-style
room
adjacent to a single restroom and
shower.
The responders are
provided with a limited day room
area and kitchen. Station 302 is
marginally adequate for its current
use.
Survey Components
1. Structure
B. Date
D. Auxiliary power
E. Condition
gender appropriate, storage, etc.)
2. Square Footage
3. Accommodations
A. Exercise/workout
C. Lockers/showers
E. Washer/dryer
Observations
Steel frame with metal siding and roof
Constructed in the late 1970s with a limited
updating in the late 1990s
None
An automatic starting emergency generator is
in place
Fair
The facility is not ADA compliant, nor mixedgender appropriate. Storage is limited
Approximately 3,000
In a dedicated room
A small kitchen is present with residential
grade appliances. A single dorm area sleeps
three
Small lockers are located in the sleeping
area. Only one shower is available
There is no classroom facility
A washer and dryer are present in the
apparatus bay area
A. Sprinkler system
B. Smoke detection
C. Security
A fire sprinkler system is in place, but does
not meet current code and is not monitored
Smoke detection is provided throughout the
station
All doors are equipped with combination locks
Primary apparatus is equipped with on-board
exhaust control
57
Figure 28: South Station - 303
The design of Station 303 is the
same as Station 301, housing one
engine, a water tender, and a
medic unit in three drive-through
apparatus bays. The living area
accommodates seven response
personnel with individual sleeping
rooms and a large, well equipped
kitchen and day-room area. Office
space consists of an inspector’s
office and a community police
office and a meeting room that can
seat ten people.
Survey Components
1. Structure
B. Date
D. Auxiliary power
E. Condition
2. Square Footage
3. Accommodations
A. Exercise/workout
C. Lockers/showers
E. Washer/dryer
A. Sprinkler system
B. Smoke detection
C. Security
58
Observations
2001
When designed
Excellent
mixed gender use, is ADA accessible and is
12,000
Provided
sprinkler system
control devices
Figure 29: East Station - 304
Station 304 is designed with the
same floor plan as Station 301 and
303, with the exception that the
footprint is reversed. Three drivethrough apparatus bays house two
engines, a water tender, an
interface engine, and two medic
units. Like the other stations, living
space
for
seven
response
personnel is provided in addition to
a well-appointed kitchen and dayroom area. An inspector’s office, a
backup 911 dispatch center, and a
community police spaces are
present, as well as a meeting
room.
Survey Components
1. Structure
B. Date
D. Auxiliary power
E. Condition
2. Square Footage
3. Accommodations
A. Exercise/workout
C. Lockers/showers
E. Washer/dryer
A. Sprinkler system
B. Smoke detection
C. Security
Observations
2004
When designed
Excellent
12,500
Provided
sprinkler system
control devices
59
Figure 30: North Station - 305
The same design is employed in
Station 305 as in the others except
Station 302. The three apparatus
bays at this station hold one engine, a
water tender, a light brush unit, one
heavy rescue vehicle, and a medic
unit. Residential space for seven and
kitchen/day room areas are the same
as the other stations and the same
office and meeting spaces are
present. There are also two small
rooms for a compressed breathing air
system and related equipment.
Survey Components
1. Structure
B. Date
D. Auxiliary power
E. Condition
removal, etc.)
2. Square Footage
3. Accommodations
A. Exercise/workout
C. Lockers/showers
E. Washer/dryer
A. Sprinkler system
B. Smoke detection
C. Security
60
Observations
2002
When designed
Excellent
12,500
Provided
sprinkler system
control devices
Figure 31: Administration Building
The Administration Building is located
immediately adjacent to Station 301.
The building includes 12 offices, a
reception area, and a large meeting
room. There are also two smaller
conference rooms that are adjacent to
the fire chief and fire marshal offices.
The facility is of contemporary design,
similar to the fire station and is well
appointed,
serving
its
intended
purpose well.
Survey Components
1. Structure
B. Date
D. Auxiliary power
E. Condition
removal, etc.)
2. Square Footage
3. Accommodations
A. Exercise/workout
C. Lockers/showers
E. Washer/dryer
A. Sprinkler system
B. Smoke detection
C. Security
Observations
2001
When designed
Excellent
10,000
Not applicable
No lodging included. Full kitchen
Available for both genders
A large meeting room is present along with
two smaller conference rooms in the office
area
Not applicable
sprinkler system
Not applicable
61
Figure 32: Training Center
The Training Center is co-located with Station
305, along with both a logistics building and a
large training ground which is equipped with a
drill tower and multiple training props. The
building provides office space for the training
officer and one other employee, along with a
well-equipped
classroom
that
will
seat
approximately 35 students.
Survey Components
1. Structure
B. Date
D. Auxiliary power
E. Condition
removal, etc.)
2. Square Footage
3. Accommodations
A. Exercise/workout
C. Lockers/showers
E. Washer/dryer
A. Sprinkler system
B. Smoke detection
C. Security
62
Observations
Masonry and wood frame
2002
When originally designed
No
Excellent
The Training Center building is fully ADA
compliant and meets applicable code
requirements
Approximately 8,000
Not applicable
No lodging, coffee area only
Not applicable
Classroom for 35 students can be divided in two
rooms. Appropriate audio/visual and video
conferencing equipment is in place
Not applicable
The building is fully protected by a fire sprinkler
system
Smoke detection is present throughout
All doors are secured with combination locks
Not applicable
BFD’s fire stations are appropriately designed, well maintained, and will continue to serve the
agency well.
The sole exception is the Tumalo Station, which is in need of upgrade or
replacement. ESCI was informed that plans are being made to replace the station by building
on property adjacent to the existing facility. The project was put on hold for budgetary reasons.
The stations and Training Center were funded and constructed by DCRFPD #2 and remain in
ownership of the District. The Administration building, however, is owned by the City.
With the noted exception, the existing facilities can be expected to continue to be used well into
the future, but at some point in time they will need to be updated or replaced. When the time
comes to do so, a considerable financial impact will result, although likely occurring over an
extended period of time. There is no long-range plan in place for replacing fixed facilities and,
as the Fire Department and District move forward, consideration should be given to planning for
how the future facility needs will be financed.
Apparatus
Other than the emergency responders, response vehicles are the next most important resource
of the emergency response system.
If emergency personnel cannot arrive quickly due to
unreliable transportation, or if the equipment does not function properly, then the delivery of
emergency service is likely compromised.
Fire apparatus are unique and specialized pieces of equipment, customized to operate
efficiently for a narrowly defined mission. For this reason, fire apparatus are very expensive and
offer little flexibility in use and reassignment. As a result, communities always seek to achieve
the longest life span possible for these vehicles.
A summary of the Bend Fire Department’s emergency response vehicle fleet is provided in the
following table.
63
Figure 33: Bend Frontline Apparatus Summary
Station 301
Apparatus
Designation
Type
Year
Make and Model
Condition
Minimum
Staffing
Pump
Capacity
Tank
Capacity
312
Battalion
2004
Chevy Tahoe
Good
1
N/A
N/A
313
B/U
Battalion
2004
Chevy Tahoe
Good
1
N/A
N/A
321
Engine
1995
KME Renegade
Fair
3
1,250
750
341
Interface
1995
Freightliner/KME
Brush Engine
Good
3
500
750
351
Ladder
2003
Freightliner/ALF
Excellent
3
1,250
273
370
Medic
1999
Good
2
N/A
N/A
371
Medic
2008
Fair
2
N/A
N/A
Pump
Capacity
Tank
Capacity
Ford E350 Wheeled
Coached Medic
International North Star
Medic Unit
Station 302
Apparatus
Designation
Type
Year
Make and Model
Condition
Minimum
Staffing
322
Engine
1995
KME Renegade
Fair
3
1,250
750
342
Interface
2007
Good
3
500
500
372
Medic
2008
Fair
2
N/A
N/A
Apparatus
Designation
Type
Year
Make and Model
Condition
Minimum
Staffing
Pump
Capacity
Tank
Capacity
323
Engine
1995
KME Renegade
Fair
3
1,250
750
333
Tender
1995
Good
1
500
2,500
343
Interface
1995
Good
3
500
750
373
Medic
2008
Fair
2
N/A
N/A
346
Light
Brush
1995
Good
1
60
250
International Brush Engine
Medic Unit
Station 303
64
Ford L9000
Water Tender
Freightliner/KME
Brush Engine
Medic Unit
Light Brush 1 Pumper
Station 304
Apparatus
Designation
Type
Year
Make and Model
Condition
Minimum
Staffing
Pump
Capacity
Tank
Capacity
324
Engine
1995
KME Renegade
Fair
3
1,250
750
326
Engine
2003
International 4400SBA
Good
3
1,250
750
334
Tender
1995
Good
1
500
2,500
344
Interface
2007
Good
3
500
500
374
Medic
2008
Fair
2
N/A
N/A
376
Medic
2008
Fair
2
N/A
N/A
Apparatus
Designation
Type
Year
Make and Model
Condition
Minimum
Staffing
Pump
Capacity
Tank
Capacity
325
Engine
1995
KME Renegade
Fair
3
1,500
750
335
Tender
1995
Ford L9000
Good
1
5010
2,500
345
Light
Brush
1995
Chevy Cheyenne
Good
1
60
250
365
Rescue
2001
KME Rescue Vehicle
Good
3
N/A
N/A
375
Medic
2008
Medic Unit
Fair
2
N/A
N/A
395
Support
2005
Ford F-250
Good
1
N/A
N/A
Ford L9000
Water Tender
International Brush Engine
Medic Unit
Medic Unit
Station 305
Maintenance of emergency apparatus is essential.
ESCI reviewed vehicle repair and
maintenance programs making the following observations:
Daily and weekly response readiness checks are completed routinely
Full chassis maintenance is scheduled and performed annually
Fire pump testing and repair is conducted on an annual basis, consistent with applicable
standards
All required testing of fire hose, pumps and ladders is performed annually, as defined in
applicable standards. Tests are performed by city personnel
Aerial ladders are tested annually by an external contractor
Chassis maintenance and repair is primarily conducted by city shop personnel. BFD reports
that there are four mechanics in the maintenance facility and that they are exceptionally
responsive to the needs of the fire department and provide excellent support. The mechanics
65
are not, however, certified Emergency Vehicle Technicians, a training standard that should be
considered in the future.
Bend’s apparatus maintenance, testing and repair practices are consistent with industry
standards and best practices.
In reviewing the current apparatus fleet, ESCI observed that a considerable percentage of major
vehicles were purchased at about the same time, including all of the front-line fire engines
(obtained in 1995), along with two interface and two brush units and two water tenders. Using a
20-year service life as an example for fire engines, the five 1995 units will be due for
replacement in the next two years.
Six ambulances were purchased in 2008 and, having a shorter service life than fire engines, will
also be due for replacement in the near future.
Assuming that an ambulance will remain
serviceable for approximately seven years, the six vehicles will also be subject to replacement
at approximately the same time as the engines.
Historically, BFD has funded replacement of major apparatus using a combination of available
budget funds and primarily bonded debt. Sufficient funding has not been set aside in reserve to
meet the above listed replacement needs so a similar approach to that used historically will
likely need to be used. ESCI recommends that a capital replacement schedule and funding
mechanism be developed for addressing long-range apparatus purchasing needs. Additional
detail on the recommendation and a sample replacement schedule is included in the fiscal
analysis section of this report.
Looking forward, should a change in governance of the fire department result in District
assumption of fire protection responsibilities, the disposition of both facilities and vehicles will
need to be considered. It is most logical that ownership of City-owned capital resources would
be transferred to that of the new organization.
66
Fiscal Analysis
Budgeting for cities, municipalities, and special districts in the United States has become a
challenging undertaking. Many public entities are experiencing a flattening or downturn in their
revenue.
There are a number of factors influencing governmental revenues.
The current
housing crisis and the reduction in appraised taxable value (real market value versus maximum
assessed value) have caused a general slowing of or reduction in property tax revenue. Other
factors are property tax limitation measures, lack of economic growth, and a flattening of
revenue from fees for service that are often a significant basis of revenue for fire departments.
Property taxes in fire districts are the primary source of revenue. In DCRFPD #2, 98 percent of
revenue is property tax-related. Property taxes in municipalities are also significant but other
sources of revenue are available. Property tax and franchise fee revenue account for 88 percent
of the City of Bend’s General fund revenue. Due to the importance of this revenue source, the
following section details property taxes in the State of Oregon.
Property Tax
The property tax system is one of the most important sources of revenue for more than 1,200
local taxing districts in Oregon. Property taxes rely on county assessment and taxation offices to
value the property, calculate the tax, collect the tax, and distribute the money to taxing districts.
Taxing districts have the legal authority to levy taxes and, under Measure 50, each has a
permanent tax rate. In addition, taxing districts can levy temporary taxes, with voter approval,
both for operating expenditures (local option levies) and debt service (bond levies).
There were two structural changes to the system in the 1990s as a result of ballot measures.
Measure 5, which introduced tax rate limits, was passed in 1990. In 1997, Measure 50 was
passed and transformed the system of permanent rates and limits on assessed value growth.
Measure 5
Measure 5 introduced limits, starting in 1991–92, on the taxes paid by individual properties. The
limits of $5 per $1,000 real market value for school taxes and $10 per $1,000 real market value
for general government taxes applied only to operating taxes, not bonds. If property taxes
exceed these limits, then they are reduced or “compressed” to the calculated limits.
To accomplish this, the taxes for each taxing district must be reduced. First, local option taxes
are reduced proportionately, possibly to zero. If there are no local option taxes or they have
67
been reduced to zero, the tax rates from the permanent rate for each taxing district are reduced
proportionately as well. This process is referred to as compression and the revenue loss for the
districts is referred to as compression loss.
It is important to note that while property tax rates are generally discussed in terms of assessed
value, the Measure 5 limits apply to real market value.
Measure 50
The 1997 Legislature drafted Measure 50 with the objective to reduce property taxes in 1997-98
and to control their future growth. It achieved these goals by cutting the 1997-98 district tax
levies and by making three changes: switching to permanent rates, reducing assessed values,
and limiting annual growth of assessed value.
While Measure 5 simply limited the tax rates used to calculate taxes imposed, Measure 50
changed the concepts of both assessed values and tax rates. Assessed value was no longer
equal to real market value.
According to Oregon Revised Statute (ORS) 308.205, real market value (RMV) is defined as
...the amount in cash that could reasonably be expected to be paid by an informed buyer
to an informed seller, each acting without compulsion in an arm's length transaction
occurring as of the assessment date for the year.
A property's assessed value (AV) is the lower of its RMV or its maximum assessed value. Each
year, the county assessor determines the property's real market value and calculates its
maximum assessed value. Properties are taxed on the lesser of the two, which is called the
assessed value.
A property’s maximum assessed value (MAV) is the taxable value limit established for each
property. The first MAV for each property was set in the 1997-98 tax year. For that year, the
MAV was the property’s 1995-96 RMV minus 10 percent.
68
Figure 34: Measure 50 Limits Taxable Value with MAV
$350
RMV
MAV
AV
$300
Value ($ Billions)
$250
$200
$150
$100
Measure 50 lowered AV to
1995-96 RMV minus 10% by
way of the creation of MAV
$50
$
1993-94
1996-97
1999-00
2002-03
MAV can increase for only two reasons: a 3 percent annual increase or specific property events.
1. Three Percent Increase
For tax years after 1997-98, MAV is defined as the greater of the prior year's MAV or the
prior year's AV increased by 3 percent. This means MAV will increase by 3 percent per
year unless the RMV of the property is less than MAV for two years in a row. If this
happens, MAV will not increase in the second year.
Figure 35: Impact of MAV on AV Growth
300,000
RMV
MAV
AV
MAV increases by 3% per year
unless the RMV is less than MAV
for two years in a row
275,000
250,000
225,000
200,000
AV is limited to
the lower of RMV
or MAV
175,000
AV can grow as
fast as RMV until
it hits MAV
150,000
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
69
2. Property Events
The MAV can increase by more than 3 percent for any of the following property events:
1. A result of new property or new improvements to the property.
2. The property is partitioned or subdivided.
3. The property is rezoned and used consistently with rezoning.
4. The property is first taken into account as omitted property.
5. The property becomes disqualified from exemption, partial exemption, or special
assessment.
For new property, MAV is calculated by multiplying the new property’s RMV by the change
property ratio (CPR), the ratio of AV to RMV of similar property.
Property Assessment
The process of identifying taxable property and assigning a value to it is termed "appraisal".
County assessors appraise most property in Oregon. The Oregon Department of Revenue
appraises certain large industrial sites, and utility property.
Property subject to taxation includes all privately owned real property (e.g., land, buildings, and
fixed machinery, and equipment), manufactured homes, and personal property used in a
business. There is no property tax on household furnishings; personal belongings and
automobiles; crops; orchards; business inventories; or certain intangible property such as
stocks, bonds, or bank accounts.
Each county assessor appraises all property within the county at 100 percent of its RMV. RMV
can go up or down depending upon the market and circumstances specific to each property.
Assessors consider sales of similar properties and may also use rents and income to determine
the RMV of certain properties.
The value or RMV of the property is determined as of January 1 of each year.
70
Figure 36: Deschutes County Total RMV and AV, 1997 to 2013
$40
Property Value (Billions)
$35
RMV
AV
$30
$25
$20
$15
$10
$5
$1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Since the inception of Measure 50 in 1997, through 2009, RMV in Deschutes County increased
at an average growth rate of 15.1 percent per year, while AV grew at an average of 8.4 percent.
This disparity created a situation where a majority of property owners in Deschutes County had
a taxable AV that was much lower than their RMV. However, with the national housing crisis the
countywide RMV decreased by $16.7 billion between 2010 and 2013, equating to a negative
13.0 percent average annual growth rate or a 44.3 percent total loss from the record high 2009
level. Despite this, and due to the significant gap between RMV and AV, AV grew at an average
annual rate of 1.4 percent over the same four years.
Growth rates below 3.0 percent came as a shock to many taxing districts as it was assumed
that Measure 50 guaranteed at least 3.0 percent growth. However, Measure 50 also stipulates
that AV may not exceed RMV, an unanticipated consequence. As a result, if the RMV of a
property falls below its AV, the taxable value or AV will be set at the RMV.
The following chart, prepared by the Deschutes County Assessor’s office, depicts an example of
a decline and recovery of RMV on a single home in the county and the effect on MAV and AV.
71
Figure 37: Impact of Changing Market, 2008 – 2013
The impact of the declining RMV did not impact property revenue until the 2010-11 tax year. In
this year the RMV fell 22.9 percent, which resulted in the assessed value being below the MAV
by 11.5 percent. This 11.5 percent translates into a reduction of property tax revenue. The RMV
grew slightly in 2011-12 by 1.9 percent with significant improvement in the 2012-13 budget year
with a growth of 14.2 percent bringing property tax revenue back to the 2009-10 level. The
example assumes that in 2013-14 AV will rise to MAV level again.
Potential for Compression
In order for there to be any possibility for compression for either the City of Bend or Deschutes
County #2 the combined general government levies (operating levies, not schools or bond
levies) would have to be greater than $10 in any of the code areas that either organization
serves.
Code areas are geographic units established by a county assessor and identified by a code
number representing a unique combination of taxing districts. All properties in a code area pay
taxes to the same taxing districts.
72
Figure 38: City of Bend 2012-13 Total General Government Rates by Code Area
Code
Area
1-001
1-061
1-087
1-114
1-115
1-122
Total
General
Government
Rate
7.5197
7.5197
7.5197
7.5197
6.0587
7.5197
The highest combined total general government rate in any of the City of Bend’s code areas is
7.5197, leaving 2.4803 of potential room before compression could be possible.
Figure 39: DCRFPD #2 2012-13 Total General Government Rates by Code Area
Code
Area
Total
General
Government
Rate
1-003
1-015
1-017
1-031
1-048
1-051
1-058
1-079
1-080
2-007
2-008
2-025
2-030
2-032
2-038
2-042
6.0291
6.0291
7.4901
6.0291
6.0291
6.4668
6.0291
6.0291
6.0291
6.0291
6.4008
6.0291
6.0291
6.0291
6.0291
6.2491
The highest combined total general government rate in any of the Deschutes County #2 code
areas is 7.4901, leaving 2.5099 of potential room before compression could be possible.
73
The potential for compression can increase if other general government districts add local
option levies or if new districts are formed. Conversely, if the housing market recovers and RMV
out paces AV growth, this allows for total combined rates above the $10 limit.
Ultimately compression loss is less significant compared to the value loss that experienced
between 2009 and 2011 that was caused by RMV decreases, forcing direct loss of AV.
BFD Financial Profile
The Bend Fire Department costs of operation are accumulated in a Fire Fund. The Fire Fund
was established based on contractual agreement with Deschutes County Rural Fire Protection
District # 2 to identify revenue and cost and equally share in the cost of operations between the
two organizations. The City of Bend funds these operations from revenue received in the City’s
General Fund. In the figure below, the 2012/13 budget revenue11 is shown for the general fund.
Figure 40: City of Bend General Fund Revenue, 2012/13 Budget
Revenue Source
Taxes and Franchise Taxes
Intergovernmental Revenue
Charges for Service
Transfers From Other Funds
Loan Repayment - Interfund
Other
Total Revenue
2012 - 2013
Budget
29,386,300
2,257,600
1,504,000
28,200
80,100
567,650
33,823,850
Percent of
Total
86.88%
6.67%
4.45%
0.08%
0.24%
1.68%
100.00%
Property tax and franchise fees represent 88 percent of the City’s total General Fund revenue.
As discussed earlier, major changes in the assessed value of property will have a significant
impact in the City’s General Fund. The fire department operating costs are primarily covered by
general fund revenue. The fire department’s 2012/13 budget value/revenue received was
$10,120,500 or 29.9 percent of total General Fund revenue.
City of Bend Historical Assessed Value (AV)
The following table shows the historical AV for the City of Bend from 2008/09 through 2012/13.
It includes the percent change in AV by year.
11
City of Bend 2011 – 2013 Biennial budget page 57.
74
Figure 41: City of Bend AV History, 2007/08 – 2012/13
Year
Assessed
Value
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
7,221,670,912
7,679,724,149
7,994,303,425
8,086,002,160
8,042,405,062
8,243,179,534
Percent
Change
from Prior
Year
6.34%
4.10%
1.15%
-0.54%
2.50%
The average annual percent of change for AV from 2007/08 through 2012/13 was an increase
of 2.71 percent. This increase was softened by the radical decline in 2010/11 and 2011/12
which has 0.30 percent increase. Even though this decrease has a substantial impact on the
City’s budget, the decrease isn’t as severe as the countywide declines shown in the assessor’s
report.
The City of Bend levy rate is fixed (permanent rate) at $2.8035 per $1,000 of AV. A comparison
was made of levy rates for Oregon cities which a population of 50,000 – 100,000 and is
illustrated in the following table.
Figure 42: Oregon Cities Population 50,000 – 100,000 Levy Rates Imposed, 2011/12
City
Albany
Beaverton
Bend
Corvallis
Hillsboro
Medford
Springfield
Population
50,157
89,803
77,907
54,462
91,611
74,907
59,403
Permanent
Levy Rate
6.3984
3.9696
2.8035
5.1067
3.6665
5.2953
4.7403
Local
Option
Bond
Levy
0.9500
0.0000
0.0000
0.4500
1.7200
0.0000
0.1450
0.4240
0.2095
0.2462
0.5304
0.0000
0.0800
0.8372
12
Total
Levy
Rate
7.7724
4.1791
3.0497
6.0871
5.3865
5.3753
5.7225
The City of Bend has the lowest total levy rate of cities in this population range. The closest city
to Bend is Beaverton which is $1.1294 per $1,000 of assessed value higher. This is misleading
as Beaverton does not provide fire protection. Tualatin Valley Fire & Rescue (TVF&R) provides
this service for Beaverton. TVF&R total levy rate is $1.9302 per $1,000 of AV; making the
equivalent total levy rate 6.1093 for Beaverton.
12
Property Tax Data published by the League
htttp://www.oregon/dor/STATS/pages303-405-12-toc.aspx.
of
Oregon
cities
on
website
75
BFD Historical Financial Information
The following section of the report provides a historical review of financial data from 2008/09
through 2012/13. Two values have been included for 2012/13; the first is the approved budget
and the second is the forecasted results for 2012/13 as forecasted by the Bend Finance
Department. The Bend budget includes all personnel costs for approved FTEs regardless
whether the position is filled. The forecast excludes these positions with some other smaller
changes that have been identified. The following figure depicts the difference between FTEs in
the budget and positions actually filled.
Figure 43: BFD Approved FTEs vs. Actually Filled, 2012/13 Budget
Position Title
Approved
FTEs
Actual
FTEs
Unfilled
FTEs
1.0
3.0
1.0
1.0
2.0
1.0
1.0
0.5
0.5
11.0
1.0
3.0
1.0
.25
2.0
1.0
1.0
0.5
0.5
10.25
0.0
0.0
0.0
0.75
0.0
0.0
0.0
0.0
0.0
.75
3.0
15.0
18.0
36.0
5.0
77.0
88.0
3.0
15.0
16.0
33.0
4.0
72.0
81.25
0.0
0.0
2.0
3.0
1.0
5.0
6.75
Administration
Fire Chief
Deputy Fire Chief
Ambulance Billing Tech.
Admin Spec I
Admin Spec III
Admin Spec IV
Logistic Technician
EMS Program Mgr.
EMS Support
Total Admin
Operations Staff
Battalion Chief
Captain
Engineer
Deputy Fire Marshal
Total Operations
Total BFD FTEs
BFD Revenue History
The following figure provides a detailed review of fire operations revenue for BFD from 2008/09
through 2012/13.
76
Figure 44: BFD Fire Revenue History, 2008/09 – 2012/13
Description
Conflagration
Fire Operations & Safety
Safer Grant
State Fire Marshall-Confl
Rural Fire District #2
Miscellaneous
Fire Marshall Plan Review
Fire Line Sales-Water Rev
Other Fire Dept. Charges
Restitution Receipts
Fire Protection Contracts
Ambulance Services
Charge for Services
Firemed Memberships
Commissions Paid
Interest on Investments
Donations/Contributions
Worker's Comp (SAIF)
Other Miscellaneous
Purchase Discounts
Vehicles
Subsidy Training Center Rent
Oper Subsidy from Gen Fund
Projected Add'l City Subsidy
Int Bill-Enterprise Funds
Int Bill-Int Service Fund
Equipment
From Governmental Funds
From Internal Service Fund
Vehicles
Debt Proceeds
Debt Proceeds Premium
Total Revenue
Effective Levy Rate
13
2008 - 2009 2009 - 2010 2010 - 2011 2011 - 2012 2012 - 2013 2012 - 2013
Actual
Actual
Actual
Actual
Budget
Forecast
26,485
7,469
35,384
27,445
32,489
551
34,825
53,705
238,931
233,500
233,500
31,135
32,034
2,206,268
2,318,024
2,367,657
2,406,303
2,466,500
2,458,915
4,062
120
9,200
60,296
79,045
63,171
58,500
365,657
366,213
447,514
477,923
506,600
8,132
24,843
3,641
2,000
59,427
53,386
36,006
30,245
32,700
1,374,691
1,535,907
1,612,776
1,468,473
1,303,700
2,035,000
132,757
136,278
142,201
137,005
139,400
(7,988)
(7,748)
(7,698)
(3,092)
(8,000)
4,074
3,289
12,362
10,227
700
1,585
10,700
1,882
2,727
1,100
8,713
25,535
24,551
4,434
3,616
2,584
6,509
4,600
91
110
27
23
100
9,350
119,050
118,100
120,500
122,900
122,900
9,232,543
9,473,250
9,581,936
9,530,000
10,001,000
9,768,168
280,000
729
778
833
800
2,871
3,063
2,324
2,000
275
108,750
35,079
3,700
495,000
12,781
13,619,309
14,701,537
14,520,835
14,544,218
14,868,100
14,907,683
1.20220
1.19989
1.19961
1.19995
1.22815
1.23388
Total fire operations revenue has increased 9.5 percent from 2008/09 through forecasted
2012/13. In the same timeframe, the City’s general fund revenue transfer has increased 10.2
percent and DCRFPD #2’s contribution has increased 11.5 percent. Included in the 2012/2013
forecast is a council approved $280,000 investment for a one-time radio replacement
($250,000) and this ESCI study ($30,000).
Operations subsidy is the City’s revenue
contribution required to fully fund the fire department operations budget. The effective levy rate
is the calculated tax rate for the City’s subsidy, including the rent for stations 301, 303 and 305
charged to the fire department’s budget. The service agreement with the District has established
a minimum level of $1.1850 per $1,000 of AV for each organization. When adding the rent
13
Bend has fire service contracts with Inn at the 7th Mountain, Mt Bachelor, Gary Zimmerman on
Skyliners Rd, Don Ker on S Hwy 97 and the High Desert Museum on S Hwy 97.
77
subsidy, the City has exceeded this effective levy rate for each year of the review. The largest
increase in the effective levy rate was the 2012/13 budget year, necessary to keep up with the
13.1 percent increase in departmental expenses.
BFD operates ambulance transport services for the residence of the City and District 2. The
following table lists the total invoicing for service, less adjustments, to the gross revenue for the
Bend FD.
Figure 45: BFD Ambulance Revenue History, 2010/11 – 2011/1214
Description
Number of Trips
Gross Invoice
Less: Contractual Allowances
Less: Revenue Adjustments
Less: Write-offs
Less: Refunds
Net Ambulance Revenue
Net Collection Percent
Net Revenue per Trip
2010 - 2011
Actual
2011 - 2012
Actual
5,673
$2,788,431
996,182
58,563
35,859
21,822
$1,676,005
60.11%
$295
6,020
$2,561,344
931,037
34,873
9,826
11,685
$1,573,922
61.45%
$261
July 1, 2012 December 12, 2012
2,384
$1,245,848
390,528
15,042
50
1,729
$838,499
$352
Bend offers an ambulance subscription service, FireMed, to help citizens protect themselves
from high ambulance costs. The program protects the residents from having to pay out-ofpocket expenses for ambulance service. The cost of the program is $50 per year. With this
program the City accepts whatever the insurance company pays in full settlement of the
ambulance fee.
BFD Expenditures History
The following figures depict the historical spending for Bend FD fire and percent of costs by
expense category from 2008/09 through forecasted 2012/13.
14
The net amount of revenue shown differs from the fiscal year revenue due to timing of collections.
78
Figure 46: BFD Expenditures History, 2008/09 – 2012/13
2008 - 2009 2009 - 2010 2010 - 2011 2011 - 2012
Actual
Actual
Actual
Actual
Description
Salaries & Wages
Benefits & Taxes
Materials & Services
Capital Outlay
Debt Service
Garage Charges
Operations Transfer
Billed Services
Fund Transfers
Reserves/Engine Replacement
Total Expenditures
7,151,120
3,396,327
1,131,722
10,249
370,449
328,332
832,000
18,785
13,238,984
7,451,189
3,546,765
1,189,895
71,421
891,385
305,052
810,544
11,226
69,561
14,347,038
7,629,285
3,585,253
1,032,817
390,517
277,082
959,728
12,774
37,742
13,925,198
7,465,268
4,034,605
961,129
27,622
387,402
317,759
1,170,600
13,551
50,229
14,428,165
2012 - 2013
Budget
2012 - 2013
Forecast
7,783,051
4,294,223
1,231,280
250,000
384,000
255,800
1,091,400
13,400
31,700
1,476,339
16,811,193
7,479,104
4,241,687
1,231,280
250,000
384,000
255,800
1,097,900
13,400
25,200
14,978,371
Total expenses have increased from 2008/09 through forecasted 2012/13 by 13.1 percent.
Figure 47: BFD Category Percent of Expenditures History, 2008/09 – 2012/13
Description
Salaries & Wages
Benefits & Taxes
Capital Outlay
Debt Service
Inter-fund Charge
Operations Transfer
Billed Services
Fund Transfers
Reserves
Total Expenditures
2008 - 2009 2009 - 2010 2010 - 2011 2011 - 2012 2012 - 2013 2012 - 2013
Actual
Actual
Actual
Actual
Budget
Forecast
54.02%
25.65%
8.55%
0.08%
2.80%
2.48%
6.28%
0.00%
0.14%
0.00%
100.00%
51.94%
24.72%
8.29%
0.50%
6.21%
2.13%
5.65%
0.08%
0.48%
0.00%
100.00%
54.79%
25.75%
7.42%
0.00%
2.80%
1.99%
6.89%
0.09%
0.27%
0.00%
100.00%
51.74%
27.96%
6.66%
0.19%
2.69%
2.20%
8.11%
0.09%
0.35%
0.00%
100.00%
46.30%
25.54%
7.32%
1.49%
2.28%
1.52%
6.49%
0.08%
0.19%
8.78%
100.00%
49.93%
28.32%
8.22%
1.67%
2.56%
1.71%
7.33%
0.09%
0.17%
0.00%
100.00%
Salaries, taxes, and benefits account for 78.3 percent of the total forecasted 2012/13
operation’s expense, 8.2 percent from materials and 7.3 percent from operations transfer.
The expenditures reflected above include the operations transfer of 7.3 percent increasing from
6.3 percent in 2008/09. These costs are expenditures associated with some internal services
provided by the City. These costs are generally referred to as in-kind or in-direct charges and
include payroll processing, human resources, accounts payable, risk management, legal, IT
support, budgeting, and financial control/reporting. The following figure depicts the detail for
cost category charged to the fire department.
79
Figure 48: BFD Operations Transfer/ In-Direct Cost
2008 - 2009 2009 - 2010 2010 - 2011 2011 - 2012
Actual
Actual
Actual
Actual
Transfer-Building
7,000
Transfer-Information Tech
844
9,028
Transfer-City Attorney Of
1,300
3,200
8,500
12,300
Transfer-Risk & Training
29,400
Transfer-Information Tech
243,600
222,600
328,100
400,400
Transfer-Admin & HR
323,600
249,300
257,400
331,200
Transfer-Finance
201,000
245,900
267,000
288,900
Transfer-Insurance Fund
62,500
81,700
89,700
108,400
Operating Transfers
832,000
810,544
959,728
1,170,600
Description
2012 - 2013 2012 - 2013
Budget
Forecast
16,600
16,600
31,400
31,400
374,200
380,700
324,800
324,800
263,800
263,800
80,600
80,600
1,091,400
1,097,900
Operations transfers have increased by 32.0 percent from 2008/09 to forecasted 2012/13. This
compared unfavorably to the overall BFD expenditure increase of 13.1 percent. If an alternative
solution of creating a new fire district is recommended, these cost items will need to be taken
over by the new district or contracted from the City.
BFD Summary of Fire Fund Balance History
The following tables summarize the historical fund activities and ending fund balance for the
Bend FD from 2008/09 through forecasted 2012/13.
Figure 49: BFD Fire Fund Balance History, 2008/09 – 2012/13
Beginning Balance
2008 - 2009 2009 - 2010 2010 - 2011 2011 - 2012 2012 - 2013
Actual
Actual
Actual
Actual
Budget
1,078,577
1,458,902
1,813,401
2,409,045
2,525,098
Revenue
13,619,309
14,701,537
14,520,835
14,544,218
14,868,100
14,907,683
Expenditures
Salaries & Wages
7,151,120
Benefits & Taxes
3,396,327
1,131,722
Capital Outlay
10,249
Debt Service
370,449
Garage Charges
328,332
Operations Transfer
832,000
Billed Services
Fund Transfers
18,785
Total Expenditures 13,238,984
7,451,189
3,546,765
1,189,895
71,421
891,385
305,052
810,544
11,226
69,561
14,347,038
7,629,285
3,585,253
1,032,817
390,517
277,082
959,728
12,774
37,742
13,925,198
7,465,268
4,034,605
961,129
27,622
387,402
317,759
1,170,600
13,551
50,229
14,428,165
7,783,051
4,294,223
1,231,280
250,000
384,000
255,800
1,091,400
13,400
31,700
1,476,339
16,811,193
7,479,104
4,241,687
1,231,280
250,000
384,000
255,800
1,097,900
13,400
25,200
14,978,371
Ending Balance
1,813,401
2,409,045
2,525,098
582,005
2,454,410
Description
1,458,902
The fire fund balance has increased 68.2 percent since 2008/09.
80
2012 - 2013
Forecast
2,525,098
BFD Debt
Bend Fire Department has six debt obligations. Five of these obligations are paid out of the Fire
Fund. The other obligation is for refinancing the fire stations and paid by the Fire Station Debt
Fund. The detail of the handling of this debt are outlined in an agreement dated March 12, 2005;
the City of Bend and Deschutes District # 2 signed a memorandum of understanding outlining
the responsibilities of each agency in regards to provide fire facilities:
The City of Bend will pay facility rental to DCRFPD #2
DCRFPD #2 agrees to pay debt service on the facilities
The processing of transactions for this agreement is handled/recorded entirely by the City of
Bend in a Fire Station Debt Fund. The historical activity of this fund is shown in the figure below:
Figure 50: BFD Fire Station Debt Fund, Fiscal Years 2008/09 – 2012/13
2008 - 2009
Actual
6,170
2009 - 2010
Actual
7,066
2010 - 2011
Actual
6,435
2011 - 2012
Actual
6,780
2012 - 2013
Budget
6,630
Revenue
Interest
Transfer from Fire Fund
Debt Proceeds
Total Revenue
258,992
797
6,000
265,789
218,702
494
6,000
2,730,000
70,491
3,025,687
217,609
492
6,000
224,101
220,080
45
6,100
226,225
227,500
600
6,100
234,200
Expenditures
Bond Sales Expense
Bond Registrar
Prin. 2010 FF&C Refinancing
Prin. 1999 FF&C
Int. 2010 FF&C Refinancing
Int. 1999 FF&C
Operating Transfer
Total Expenditures
600
125,000
133,993
5,300
264,893
32,055
600
130,000
2,730,000
24,332
104,031
5,300
3,026,318
150
135,000
82,606
6,000
223,756
195
140,000
80,080
6,100
226,375
600
150,000
77,500
6,100
234,200
7,066
6,435
6,780
6,630
6,630
Description
Beginning Balance
Ending Balance
The revenue shown from DCRFPD #2 is not actual funds received from the District but rather
journal entries recording rental expense in the Fire Fund and the Police Department Budget.
The rental expense for the payment of debt is split between the fire department and the police
department. In the 2011/12 fiscal year, the fire department was charged $169,512 and the
police department $50,568. In the 2012/13 budget, the costs are budgeted for the fire
81
department of $175,200 and $52,300 for the police department. The police department is being
charged for space for their substation in the fire facilities.
The figure below describes the debt incurred with the maturity date and the amount still
outstanding.
Figure 51: BFD Debt
Full Faith
Credit
Obligation
Origination
Date
Maturity
Date
Origination
Amount
Outstanding
Principal &
Interest
6/30/12
6/01/2003
12/1/2012
747,200
87,098
12/21/2006
12/1/2021
600,000
565,491
Ambulances
12/21/2006
12/1/2016
1,175,000
791,850
Fire Engine
2/14/2008
12/1/2014
200,000
94,050
Obligation
Series
2003
Series
2006
Series
2006
Series
2008
Series
2010
Ladder
Truck
Interface
Engines
Fire Admin
Building
6/1/2010
6/1/2024
495,000
461,062
Series
2010
Fire
Stations
6/1/2010
6/1/2024
2,730,000
2,909,432
5,947,200
4,908,983
Total Outstanding Debt
Service
Comments
Charged to
Fire Fund
Charged to
Fire Fund
Charged to
Fire Fund
Charged to
Fire Fund
Charged to
Fire Fund
Charged to
Fire Station
Debt Fund
The following figure provides the detail amortization schedule for fire department debt:
82
Figure 52: BFD Debt Amortization Schedule
Description
2012 - 2013
Budget
2013 2014
2014 2015
Principal
Interest
Total
85,600
1,498
87,098
-
Principal
Interest
Total
40,000
18,328
58,328
40,000
16,728
56,728
Principal
Interest
Total
130,000
28,700
158,700
135,000
23,400
158,400
Principal
Interest
Total
30,000
2,250
32,250
30,000
1,350
31,350
Principal
Interest
Total
35,000
12,494
47,494
35,000
11,662
46,662
Principal
Interest
Total
150,000
77,468
227,468
155,000
74,601
229,601
Principal
Interest
Total
470,600
140,738
611,338
395,000
127,740
522,740
2015 2016
2016 2017
2017 2018
Series 2003 - Ladder Truck
Series 2006 - Interfaces Engines
40,000
45,000
45,000
45,000
15,128
13,428
11,178
8,984
55,128
58,428
56,178
53,984
Series 2006 - Ambulances
140,000
145,000
155,000
17,900
12,200
4,650
157,900
157,200
159,650
Series 2008 - Fire Engines
30,000
450
30,450
Series 2010 - Fire Admin Building
30,000
30,000
30,000
30,000
10,818
9,887
8,960
8,034
40,818
39,887
38,960
38,034
Series 2010 - Fire Stations
160,000
170,000
180,000
185,000
71,645
66,875
61,803
56,428
231,645
236,875
241,803
241,428
Total Debt Service
400,000
390,000
410,000
260,000
115,940
102,390
86,590
73,446
515,940
492,390
496,590
333,446
2018 2019
2019 2024
Total Debt
Service
-
-
85,600
1,498
87,098
50,000
7,178
57,178
160,000
9,543
169,543
465,000
100,491
565,491
-
-
705,000
86,850
791,850
-
-
90,000
4,050
94,050
30,000
6,844
36,844
155,000
17,363
172,363
375,000
86,062
461,062
195,000
49,018
244,018
1,130,000
126,594
1,256,594
2,325,000
584,432
2,909,432
275,000
63,040
338,040
1,445,000
153,499
1,598,499
4,045,600
863,383
4,908,983
BFD Vehicle Replacement
The City of Bend does not have a vehicle replacement fund. Historically when vehicles are to be
replaced, the City pulls what funds are available from the Fire Fund and the remaining balance
is financed by bonds. BFD originally budgeted $1.5 million for vehicle replacements in 2012/13
to be financed by debt with an additional $1.9 million to be paid by funds from the Fire Fund.
This purchase has been moved to the 2013/14 fiscal year with a value of $3.5 million.
ESCI recommends that the City maintain a vehicle replacement plan. ESCI developed an
updated vehicle replacement plan for the fire department, projecting the useful life of vehicles
and scheduling the replacement date for these vehicles based on the remaining useful life. The
replacement date assumes that all vehicles will be placed in reserve status for five years prior to
disposal.
The following table provides an example of vehicle useful life for developing a
replacement schedule.
83
Figure 53: BFD Vehicle Replacement Useful Life
Vehicle Type
Engine
Ladder
Tender
Heavy Rescue
Interface/Brush
Ambulance
Command
Support Vehicles
Frontline
Service
15
20
20
15
20
7
8
7
Reserve
Service
5
5
5
5
5
2
0
0
Total
Life
20
25
25
20
25
9
8
7
Replacement
Cost
575,000
975,000
260,000
525,000
275,000
160,000
40,000
40,000
The following illustrates a vehicle replacement plan summary for Bend Fire Department.
84
Figure 54: BFD Vehicle Replacement Plan Summary
Vehicle
Number
Purchase
Date
321
322
323
324
326
325
1995
1995
1995
1995
2003
1995
351
2003
333
334
335
1995
1995
1995
365
2001
341
342
343
344
1995
2007
1995
2007
370
371
372
373
374
376
375
1999
2008
2008
2008
2008
2008
2008
346
345
1995
1995
312
313
303
310
304
311
380
316
Admin
Admin - Fay
Admin - Wright
Admin - Peggy
Training
Admin
Admin - Kathy
Admin
2004
2004
1997
2006
1997
2005
2010
2005
2007
2003
2004
2004
2009
2009
2005
2005
395
385
386
384
381
395
383
399
Warehouse
Warehouse
Warehouse
Warehouse
Warehouse
Warehouse
Shops
2005
2007
2007
2007
2006
2005
2005
1997
1989
1974
1998
1989
1990
2007
2004
303
305
Training
Total
1927
1999
2000
Years left
as of
12/31/11
Engines
KME Renegade
20
4
KME Renegade
20
4
KME Renegade
20
4
KME Renegade
20
4
International 4400SBA
20
12
KME Renegade
20
4
Ladder
American LaFrance
25
17
Tenders
Ford L900 Tender
25
9
Ford L900 Tender
25
9
Ford L900 Tender
25
9
Heavy Rescue
KME Rescue
25
10
Interface/Brush
Freightliner KME Interface
25
9
International Interface
20
16
Freightliner KME Interface
25
9
International Interface
20
16
Ambulance/Medic
Ford E350 Wheeled Coach
7
0
7
4
7
4
7
4
7
4
7
4
7
4
Light Brush
Light Brush
25
9
Chevy Cheyanne
25
9
Command/Admin
Chevy Tahoe
8
0
Chevy Tahoe
0
0
Jeep Cherokee
0
0
Ford Explorer
8
3
Chevy Tahoe
0
0
Chevy Tahoe
8
2
Ford Explorer
8
6
Ford Explorer
8
2
Ford Escape Hybrid
8
4
Jeep Cherokee
8
0
Jeep Cherokee
8
1
Jeep Cherokee
8
1
Ford Escape Hybrid
8
6
Ford Escape Hybrid
8
6
Ford Ranger 4x4
7
1
Ford Ranger 4x4
8
2
Support/Warehouse
Ford F-250
10
4
Ford Ranger 4x4
7
3
Ford Ranger 4x4
7
3
Ford Ranger 4x4
7
3
Ford Ranger 4x4
7
2
Ford F-250
7
1
Ford Ranger 4x4
7
1
Eldordo Bus
20
6
International Truck
20
0
Intenational Flatbed
20
0
Chevy 2500
7
0
International Beer Truck
20
9
Forklift
USAR Trailer
Chevy 2500
7
0
Other Vehicles
Pirsch-Parade
N/A
N/A
Home Built Trailer
Enclosed Trailer
Make
Useful
Life
Replacement
Cost
Reserve
Required'@
12/31/11
Annual Reserve
Requirement
575,000
575,000
575,000
575,000
575,000
575,000
460,000
460,000
460,000
460,000
230,000
460,000
28,750
28,750
28,750
28,750
28,750
28,750
975,000
312,000
39,000
260,000
260,000
260,000
166,400
166,400
166,400
10,400
10,400
10,400
525,000
315,000
21,000
275,000
275,000
275,000
275,000
176,000
55,000
176,000
55,000
11,000
13,750
11,000
13,750
160,000
160,000
160,000
160,000
160,000
160,000
160,000
160,000
68,571
68,571
68,571
68,571
68,571
68,571
22,857
22,857
22,857
22,857
22,857
22,857
22,857
175,000
175,000
112,000
112,000
7,000
7,000
40,000
40,000
Surplus
40,000
Surplus
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
25,000
30,000
10,000
30,000
20,000
40,000
35,000
35,000
10,000
10,000
34,286
30,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,714
5,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
40,000
24,000
22,857
22,857
22,857
28,571
34,286
34,286
28,000
40,000
40,000
40,000
22,000
4,000
5,714
5,714
5,714
5,714
5,714
5,714
2,000
2,000
2,000
5,714
2,000
40,000
40,000
5,714
-
-
5,662,629
-
610,629
85
Implementation of the above vehicle replacement plan would require a fund balance of
$5,662,629 on December 31, 2011, and an annual accrual/budget of $610,629 adjusted for
inflation.
A large infusion to capital replacement is not a viable option for the BFD.
An
alternative would be to begin establishing a vehicle replacement fund over the next 15 to 20
years by beginning the encumbrance process.
BFD Unfunded Liabilities
The City of Bend, which includes fire department personnel, has an unfunded liability for
employee pensions through the Oregon Public Service Retirement Plan (OPSRP) and Retiree
Healthcare Insurance Account (RHIA).
Based on an actuarial report prepared by Milliman
Financial Consulting Services, dated September 28, 2012, for the December 31, 2011, valuation
period, there is a total of $18,518,074 in unfunded liability. In addition, the City of Bend,
including fire department personnel, has an unfunded liability for other post-retirement benefits
(OPRB) of $18,220,844.
The City’s policy is to “pay as you go” for these expenses. The
following table depicts the historical unfunded liability for pension:
Figure 55: City of Bend Unfunded Pension Liability
Actuarial
Valuation
Date
12/31/2007
12/31/2008
12/31/2010
12/31/2011
Value of
Assets
93,975,721
107,912,057
116,318,438
113,904,241
Actuarial
Accrued
Liability
113,200,430
121,599,417
128,704,772
132,422,315
Unfunded
Liability
Funded
Ratio
19,224,709
13,687,360
12,386,334
18,518,074
83%
89%
90%
86%
The following figure depicts the historical unfunded liability for other post-retirement employee
benefits: 15
Figure 56: City of Bend Unfunded Other Post-Retirement Benefits Liability
Actuarial
Valuation
Date
7/31/2007
7/31/2009
7/31/2011
7/31/2012
15
Value of
Assets
0
0
0
0
Actuarial
Accrued
Liability
18,757,092
22,829,327
20,603,241
19,220,844
Unfunded
Liability
Funded
Ratio
18,757,092
22,829,327
20,603,241
19,220,844
83%
89%
90%
86%
The information for this table was extracted from the actuarial report dated August 20, 2012.
86
DCRFPD #2 Financial Profile
Deschutes County Fire Protection District #2 is projected to contribute $2,458,915 for fire
services in the 2012-13 budget year into the Fire Fund operated by the City of Bend. The Fire
Fund was established based on contractual agreement with the City of Bend to identify revenue
and cost, and to equally share in the cost of operations between the two organizations.
Historical Assessed Valuation
Figure 57: DCRFPD #2 Historical AV, 2007/08 – 2012/13
Year
Assessed
Value
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
1,771,046,813
1,861,829,482
1,956,138,166
1,998,022,843
2,030,635,317
2,075,034,302
Percent
Change
from Prior
Year
5.13%
5.07%
2.14%
1.63%
2.19%
From fiscal year 2007/08 to 2012/13 AV increased 17.2 percent. While AV has increased in
each fiscal year since 2007/08, in fiscal year 2010/11 valuation increases slowed. The average
increase in AV from 2010/11 to 2012/13 is 1.99 percent. Even though this decline in the rate of
increase has a substantial impact on the District’s budget, the decline isn’t as severe as the
countywide declines shown in the county assessor’s report. DCRFPD #2 levy rate is fixed
(permanent rate) at $1.4366 per $1,000 of AV. A comparison was made of levy rates for fire
protection districts in Deschutes County and is provided in the following table.16
Figure 58: DCRFPD #2 Levy Rates and Taxes Imposed, 2012
District
DCRFPD #2
Black Butte Ranch RFPD
Cloverdale RFPD
Lapine RFPD
Redmond Fire And Rescue
Sisters Camp Sherman RFPD
16
Permanent
Levy Rate
Local
Option
Bond
Levy
1.4366
1.4677
1.0924
1.5397
1.7542
2.7317
0.0000
1.5600
0.0000
0.6400
0.0000
0.0000
0.0000
0.0000
0.0000
0.1562
0.0000
0.2473
Property
Tax
Data
published
on
the
League
htttp://www.oregon/dor/STATS/pages303-405-12-toc.aspx.
of
Total
Levy
Rate
1.4366
3.0277
1.0924
2.3359
1.7542
2.9790
Oregon
Property
Taxes
Imposed
2,917,211
1,643,687
326,341
2,649,155
4,843,281
2,238,824
Cities’
website
87
At $1.4366 per $1,000 of AV, DCRFPD #2 levy rate is the second lowest in Deschutes County
coming in higher than the considerably smaller volunteer department of Cloverdale RFPD.
Revenue
The following table shows the total financial resources from all sources for DRFPD#2 from fiscal
year 2008/09 through 2012/13.
Figure 59: DCRFPD #2 Total General Fund Revenue, Fiscal Years 2008/09 – 2012/13
2008 - 2009
Actual
Prior Year Levy Received
68,863
Interest
9,788
Annexation Fee
Rent
3,230
Sign Income
2,530
Grant Income
Training Fees
7,827
Personal Service Contracts
34,189
Other
3,299
Intergovernmental Funds - State
Intergovernmental Funds - Local
73,985
Property Taxes
2,488,070
Total Revenue
2,691,781
Levy Rate Collected
1.3364
Description
2009 - 2010
Actual
142,923
5,387
8,158
863
2,213
36,000
231
4,125
2,603,088
2,802,988
1.3307
2010 - 2011
Actual
131,254
4,872
500
9,402
1,176
1,710
36,000
249
4,007
2,685,315
2,874,485
1.3440
2011 - 2012
Actual
124,751
4,701
1,000
8,168
906
914
30,500
717
4,522
2,741,768
2,917,947
1.3502
2012 - 2013
Budget
120,000
5,000
1,000
6,600
1,000
10,000
5,000
30,500
500
5,000
2,750,929
2,935,529
1.3257
Revenue improved every year reviewed. However, the percent of growth has declined every
year. Revenue for the personal services is an agreement with the City of Bend for the District’s
Administration Manager to provide facility management services for the fire department.
Expenditures
The figure below summarizes the historical expenses from 2008/09 through 2012/13.
Figure 60: DCRFPD #2 Total General Fund Expense, Fiscal Years 2008/09 – 2012/13
2008 - 2009
Actual
Salary & Wage
101,458
Benefits & Taxes
43,626
55,678
Bend Service Contract
2,206,268
Debt
154,734
Transfer to Other Finds
100,000
Capital Outlay
Contingency
Total Expenditures
2,661,764
Description
88
2009 - 2010
Actual
104,000
44,469
43,150
2,318,024
138,233
125,000
2,772,876
2010 - 2011
Actual
103,279
47,122
38,430
2,367,657
141,584
144,215
2,842,287
2011 - 2012
Actual
103,367
51,473
40,794
2,406,303
139,659
60,000
2,801,596
2012 - 2013
Budget
104,000
51,000
65,300
2,466,460
138,000
275,000
60,111
3,159,871
Another view of the expenditures as a percent of total is provided in the following figure.
Figure 61: Total General Fund Expense as a percent of Total, Fiscal Years 2008/09 – 2012/13
2008 - 2009 2009 - 2010 2010 - 2011 2011 - 2012
Actual
Actual
Actual
Actual
Salary & Wage
3.81%
3.75%
3.63%
3.69%
Benefits & Taxes
1.64%
1.60%
1.66%
1.84%
2.09%
1.56%
1.35%
1.46%
82.89%
83.60%
83.30%
85.89%
Debt
5.81%
4.99%
4.98%
4.98%
3.76%
4.51%
5.07%
2.14%
Capital Outlay
0.00%
0.00%
0.00%
0.00%
Contingency
0.00%
0.00%
0.00%
0.00%
Total Expenditures
100.00%
100.00%
100.00%
100.00%
Description
2012 - 2013
Budget
3.29%
1.61%
2.07%
78.06%
4.37%
8.70%
0.00%
1.90%
100.00%
The primary expense item for the District is the payment of the fire and EMS service contract to
the City of Bend. The service contract has been effective with the fiscal year beginning on July
1, 1999, and extended each year thereafter (the contract can be terminated with three years’
written notice). The contract price has been established by multiplying the total taxable
assessed value by 1.1850 per $1,000. This payment amount will be remitted to the City as tax
revenue is collected but no later than June 30.
The contract includes many requirements by the City to provide service to the District. The
priority items are listed below:
Service provided to the District will be equal to that provided within the City.
The use and disposition of the City’s fire and EMS forces will be at the discretion of the
City’s fire chief.
The City will staff each fire station with a minimum of two fire fighters for each shift on a
24-hour basis.
Ambulance charges will be the same for City and District residents.
The contract price of 1.1850 per $1,000 of assessed value can be changed with mutual
agreement between the City and the District.17
17
Section 3.1 of the contract.
89
Bend Fire Facility Rent and Financing Agreement
In an agreement dated March 12, 2005, the City of Bend and the District signed a memorandum
of understanding outlining the responsibilities of each agency in regard to providing fire facilities.
The agreement contains the following points:
The City of Bend will pay facility rental to DCRFPD #2
DCRFPD #2 agrees to pay debt service on the facilities
The processing of transactions for this agreement is handled/recorded entirely by the City of
Bend in a Fire Station Debt Fund. The historical activity of this fund was reported earlier in this
report and is duplicated here for reference:
Figure 62: Fire Station Debt Fund, Fiscal Years 2008/09 – 2012/13
2008 - 2009
Actual
6,170
2009 - 2010
Actual
7,066
2010 - 2011
Actual
6,435
2011 - 2012
Actual
6,780
2012 - 2013
Budget
6,630
Revenue
Interest
Debt Proceeds
Total Revenue
258,992
797
6,000
265,789
218,702
494
6,000
2,730,000
70,491
3,025,687
217,609
492
6,000
224,101
220,080
45
6,100
226,225
227,500
600
6,100
234,200
Expenditures
Bond Sales Expense
Bond Registrar
Prin. 2010 FF&C Refinancing
Prin. 1999 FF&C
Int. 2010 FF&C Refinancing
Int. 1999 FF&C
Operating Transfer
Total Expenditures
600
125,000
133,993
5,300
264,893
32,055
600
130,000
2,730,000
24,332
104,031
5,300
3,026,318
150
135,000
82,606
6,000
223,756
195
140,000
80,080
6,100
226,375
600
150,000
77,500
6,100
234,200
7,066
6,435
6,780
6,630
6,630
Description
Beginning Balance
Ending Balance
The revenue shown from District #2 is not actual funds received from the District but rather
journal entries recording rental expense in the Fire Fund and the Police Department Budget.
The rental expense for the payment of debt is split between the fire department and the police
department. In the 2011/12 fiscal year, the fire department was charged $169,512 and the
police department $50,568. In the 2012/13 budget, the costs are budgeted for the fire
90
department of $175,200 and $52,300 for the police department. The police department is being
charged for space for its substation in the fire facilities.
Debt
The District is recording debt for the re-financing of the East Fire Station and training center on
May 15, 2012, with an initial principal amount of $1,610,000. The re-financing took place to take
advantage of low interest rates. The average interest rate for the debt is 1.79 percent. The
following table illustrates the amortization schedule of the debt:
Figure 63: DCRFPD #2 Debt Amortization Schedule
Fiscal Year
Principal
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-28
Total
85,000
85,000
85,000
90,000
95,000
95,000
1,075,000
1,610,000
Interest
45,721
42,892
41,598
40,285
38,897
37,473
213,461
460,327
Total
130,721
127,892
126,598
130,285
133,897
132,473
1,288,461
2,070,327
Other Funds/Reserves
In the 2012/13 budget 8.70 percent of total expenditures were for the transfer of dollars to other
funds. The District maintain three other funds: 1) Capital Improvement Fund, 2) Accrued Leave
Fund, and 3) Fire Education Fund. The activity of these funds will be shown in the next section
of the report. The total amount of the transfer in the budget was to the Capital Improvement
Fund.
General Fund Summary
The following table summarizes the historical activity of the General Fund:
91
Figure 64: DCRFPD #2 General Fund Summary, Fiscal Years 2008/09 – 2012/13
18
2008 - 2009
Actual
2009 - 2010
Actual
2010 - 2011
Actual
2011 - 2012
Actual
2012 - 2013
Budget
100,547
130,564
160,676
192,874
309,225
Revenue
2,691,781
2,802,988
2,874,485
2,917,947
2,935,529
Expenditures
Salary & Wage
Benefits & Taxes
bend Service Contract
Debt
Capital Outlay
Contingency
Total Expenditures
101,458
43,626
55,678
2,206,268
154,734
100,000
2,661,764
104,000
44,469
43,150
2,318,024
138,233
125,000
2,772,876
103,279
47,122
38,430
2,367,657
141,584
144,215
2,842,287
103,367
51,473
40,794
2,406,303
139,659
60,000
2,801,596
104,000
51,000
65,300
2,466,460
138,000
275,000
60,111
3,159,871
130,564
160,676
192,874
309,225
84,883
Description
Beginning Balance
Ending Balance
The fund balance has decreased 35.0 percent since 2008/09.
Other Funds/Reserves
In the revenue figure above, monies have been transferred to other funds/reserves. The
following figures depict the historical review of each fund, starting with a s a history of the
beginning and ending fund balance for the capital improvement reserve fund.
18
DCRFPD #2 financials do not equal the audit report by $35,161. This is not a significant discrepancy for
financial forecasts.
92
Figure 65: Capital Improvement Fund, 2008/09 – 2012/13
2008 - 2009 2009 - 2010
Actual
Actual
256,100
67,459
Description
Beginning Balance
2010 - 2011
Actual
180,740
2011 - 2012
Actual
297,729
2012 - 2013
Budget
347,729
Revenue
Transfer From General Fund
Bond Proceeds
Interest Income
Total Revenue
40,000
5,393
45,393
115,000
115,000
134,215
134,215
50,000
50,000
275,000
275,000
Expenditures
Station Development
Other
Total Expenditures
234,034
234,034
1,719
1,719
17,226
17,226
-
100,000
100,000
Ending Balance
67,459
180,740
297,729
347,729
522,729
The next figure is a history of the beginning and ending fund balance for the accrued leave
reserve fund.
Figure 66: Accrued Leave Fund, 2008/09 – 2012/13
Description
2008 - 2009 2009 - 2010 2010 - 2011
Actual
Actual
Actual
2011 - 2012
Actual
2012 - 2013
Budget
Beginning Balance
20,000
30,000
40,000
50,000
60,000
Revenue
Interest Income
Total Revenue
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
-
Expenditures
Leave Payment
Other
Total Expenditures
-
-
-
-
-
Ending Balance
30,000
40,000
50,000
60,000
60,000
The table below is a history of the beginning and ending fund balance for the fire education
reserve fund.
93
Figure 67: Fire Education Fund, 2008/09 – 2012/13
2008 - 2009
Actual
53,761
2009 - 2010
Actual
27,363
2010 - 2011
Actual
21,200
2011 - 2012
Actual
21,932
2012 - 2013
Budget
24,511
Revenue
Grant Proceeds
Interest Income
Intergovernmental Income
Total Revenue
193
50,000
50,193
70,344
70,344
77,171
77,171
106
78,232
78,338
5,000
100,000
105,000
Expenditures
FireFree Program
Project Wildfire Coordinator
Total Expenditures
2,606
73,985
76,591
6,163
70,344
76,507
2,920
73,519
76,439
75,759
75,759
5,000
100,000
105,000
Ending Balance
27,363
21,200
21,932
24,511
24,511
Description
Beginning Balance
The contract wildfire coordinator is a contract employee that is paid for from County funds
(identified as Intergovernmenal Income in the preceding table).
Economic Indicators
Economic indicators specific to Oregon, Deschutes County, and the local area will provide the
historical basis for projecting future costs that impact the operation of each organization.
Information in this section is provided to substantiate the forecast and projected increases in
assessed value (AV), revenue, and expenditures. This will be accomplished by reviewing the
history of retail home sales, unemployment statistics, and the previous ten years of the
Consumer Price Index-Urban (CPI-U).
Taxable Assessed Value
The development of the potential change in taxable assessed value for the two organizations
was developed by interviews with the county tax assessor and Bend’s director of community
development. There are two primary components for the Taxable Assessed Value:
1. Re-assessment of existing property: The county assessor’s office reviews and
assigns revised property tax values annually. As described previously in the report the
2012/13 tax year saw an end to the decreasing growth rates. The City of Bend had an
average of 2.5 percent growth, up from -0.54 percent in the prior year. Deschutes
County Rural Fire Protection District #2 saw a growth rate of 2.19 percent over its 16
code areas in 2011/12, up from 1.63 percent in 2010/11. These improved growth rates
indicate the downward trend may have reversed and a return growth at or above 2.5
percent can be anticipated going forward. Consensus among the city planner, city
finance director, and county assessor indicate high confidence improvement will
continue.
94
2. New Construction: For property that did not exist in 1997, the MAV is established by
using a change property ratio which brings the MAV down to the same general level of
property that was established prior to 1997. Based on reports provided by the director of
community development, commercial permits for new construction remain flat with the
previous four years. Residential permits have increase steadily from the 2011/12 year to
current. The number of permits issued is at the same level as were issued in the fourth
quarter of 2007/08.
Both of these factors provide for positive growth in the property tax base.
Historic Residential Property Sales
The assessor’s office utilizes recent residential home sales to establish new appraised values.
The following figures record the numbers of existing home sales and the median value by
quarter from January 2007 through June 2012 for the City of Bend and Deschutes County.
Retail home sales have trended down from 2007.19 The average sale price of these homes has
decreased from approximately $345,000 to the current level of $210,000.
Figure 68: City of Bend Median Value and Home Sales, 2007 – 2012
Home Sales in Bend, OR
$350,000
1200
$300,000
1000
$250,000
800
$200,000
600
$150,000
400
$100,000
200
$50,000
0
Median Price
Sales Count
Sales Count
Median Price
1400
$Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2007
2008
2009
2010
2011
2012
19
http://www.city-data.com/city/Bend-Oregon.html.
95
The next figure illustrates the number of home sales and the median value by quarter from
January 2007 through June 2012 for Deschutes County.20 The chart reveals the same trends
as the City of Bend with the median price declining from 2007 with the average price dropping
from $320,000 to a 2012 value of $190,000.
Figure 69: Deschutes County Median Value and Home Sales, 2007 – 2012
Home Sales in Deschutes Co, OR
$350,000
3000
$300,000
2500
$250,000
2000
$200,000
1500
$150,000
1000
$100,000
500
$50,000
0
$Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2007
20
2008
2009
2010
http://www.city-data.com/county/Deschutes-County-Oregon.html.
96
2011
2012
Median Price
Sales Count
Sales Count
Median Price
3500
Historic Unemployment Rate
The level of employment in the region could potentially impact the number of homes being sold
and the ultimate sale price. In the following figure, the historic unemployment rates are shown
for Deschutes County. 21
Figure 70: Deschutes County Unemployment, 2002 – 2012
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Unemployment
Rate
7.80%
7.80%
6.80%
5.80%
4.60%
5.00%
8.10%
14.60%
14.10%
12.40%
11.20%
Ten-year
Average
8.93%
Another way to visualize the unemployment picture in Deschutes County is depicted below.
Figure 71: Graphical Unemployment 2002 – 2012
16.0%
Unemployment Rate
14.0%
Ten-year Average
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2002
21
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
BLS.Gov series ID LAUCN4107003.
97
Annual Inflation Rate
Inflation is also an important consideration when forecasting cost.
For the purpose of this
analysis, ESCI will use the average Consumer Price Index for all urban consumers (CPI-U)
reported for the 2002 through November 30, 2012, period for the west coast class B/C
(population 50,000 – 1,500,000) Statistical Area as compiled by the U.S. Department of Labor. 22
The information is displayed in both table and graphical format.
Figure 72: Average CPI-U History, 2002 – 11/30/2012
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
CPI-U
1.500%
2.000%
2.700%
2.900%
2.900%
3.100%
3.500%
-0.600%
1.000%
3.000%
1.700%
AVG
2.155%
Figure 73: Historic and Average CPI-U Graphic, 2002 – 11/30/2012
4.0%
CPI-U
3.0%
2.0%
1.0%
0.0%
-1.0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
A historic review of the ten-year average Consumer Price Index – Urban (CPI-U) was 2.155
percent per year. However, the actual CPI-U for a given year could be higher or lower. Historic
22
U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index—All Urban Consumers,
Series Id: CUURX400SA0 Not Seasonally Adjusted, Size Class B/C (population 50,000 – 1,500,000).
98
data was used to develop an inflation index for the years 2013 through 2022 in the figure below.
The CPI-U average increase will be applied to other revenue and expense categories of the
2013 budget to develop the financial forecast for each agency.
Expenditures in 2022 are
projected to be approximately $1.24 for each of today’s dollars.
Figure 74: CPI-U Forecast Budget Impact Graphic, 2013 – 2021
1.30
1.25
1.20
1.15
1.10
1.05
1.00
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Bend FD Status Quo Status Financial Forecast, 2013/14 – 2017/18
Normally ESCI will use the assumptions outlined in the section entitled Economic Indicators to
project the financial stability of the Bend FD. In this case, the economic indicators are being
used to validate the assumptions made by the Bend Finance Department in its five-year
financial projection of the fire department. The assumptions used by the finance department
forecast are:
Assessed Valuation
2013/14 increase 2.5 percent
Revenue
Charges for services increase 2.0 percent
99
Expense
Material and Supplies increase at 2.0 percent per year
Interfund transfers increase at 3.0 percent per year
COLA increases to wages increase at 3.0 percent per year
Overtime remains a consistent 6.5 percent of payroll
Benefit increases
o
Pension cost increase 3.7 percent in 2013/14 and 2014/15, increase an
additional 3.0 percent in 2015/16 and 2016/17, and experience another 3.0
percent increase in 2017/18
The assumptions used by the City are consistent with those that would have been used by
ESCI. Therefore the City’s forecast has been used to project future stability for the fire
department.
Bend FD Forecast Assessed Value (AV)
The forecast percent of growth for the AV from 2013/14 through 2017/18 are shown in the
following table.
Figure 75: Bend AV Growth Rates by Year, 2013/14 – 2017/18
Year
Growth Rate
2013/14
2014/15
2015/16
2016/17
2017/18
2.50%
2.50%
3.00%
3.00%
4.00%
Forecasts changes in the AV from 2013/14 through 2017/18 using the growth factors above are
illustrated in the following figure.
Figure 76: BFD Forecast AV, 2012/13 – 2017/18
Year
2012/13
2013/14
2014/15
2015/16
2016/17
2017/18
100
Assessed
Value
8,243,179,534
8,449,259,022
8,660,490,498
8,920,305,213
9,187,914,369
9,555,430,944
Bend FD Forecast Revenue
The City subsidy to the revenue of fire operations is the projected transfer of revenue from the
general fund to cover the department’s costs for a given year. The corresponding effective tax
rate is also shown to provide a comparative cost as if the department operated as a fire district.
Figure 77: BFD Fire Revenue Forecast, 2012/13 – 2017/18
2012 - 2013
Forecast
Description
Safer Grant
Rural Fire District #2 Add'l Fee
Miscellaneous
Charge for Services
Debt Proceeds
Total Revenue
Effective Levy Rate
233,500
2,458,915
9,200
2,035,000
122,900
9,768,168
280,000
14,907,683
1.23388
2013 - 2014
2,508,094
10,000
2,075,700
122,800
10,012,372
3,570,000
18,298,966
1.19953
2014 - 2015
2,558,255
10,000
2,117,214
123,400
10,262,681
15,071,550
1.19925
2015 - 2016
2,609,421
253,235
10,000
2,159,558
125,600
10,570,562
1,025,835
16,754,211
1.31408
2016 - 2017
2,661,609
258,300
10,000
2,202,749
127,600
10,887,679
1,056,610
17,204,547
1.31389
2017 - 2018
2,714,841
263,465
10,000
2,246,804
126,800
11,323,186
1,098,875
17,783,971
1.31327
The forecast includes increasing the City and District’s levy rate to support fire service to 1.3000
in 2015/16. This rate does not include the rental expense for stations 301, 303, and 305, which
are funded from the general fund.
Bend FD Forecast Expenditures
Figure 78: BFD Fire Expenditure Forecast, 2012/13 – 2017/18
Description
Salaries & Wages
Benefits & Taxes
Capital Outlay
Debt Service
Garage Charges
Operations Transfer
Billed Services
Fund Transfers
Total Expenditures
2012 - 2013
2013 - 2014 2014 - 2015 2015 - 2016
Forecast
7,479,104
4,241,687
1,231,280
250,000
384,000
255,800
1,097,900
13,400
25,200
14,978,371
7,687,720
4,639,480
1,255,906
50,000
363,140
360,000
1,183,460
13,802
18,100
3,500,000
19,071,608
7,964,478
4,809,315
1,281,024
50,000
577,961
370,800
1,234,431
14,216
18,643
16,320,868
8,251,199
5,254,332
1,306,644
30,000
549,181
381,924
1,287,013
14,643
19,202
17,094,138
2016 - 2017
2017 - 2018
8,548,242
5,380,102
1,332,777
30,000
548,453
393,382
1,324,839
15,082
19,778
17,592,655
8,855,979
5,846,068
1,359,433
30,000
385,683
405,183
1,374,005
15,534
20,372
18,292,257
Bend FD Forecast Summary Fund Balance
The following figure depicts a summary forecast for fire operations, providing a snapshot of the
fund balance from 2012/13 through 2017/18.
101
Figure 79: BFD Forecast Summary Fire Operations, 2012/13 – 2017/18
Description
Beginning Balance
2012 - 2013
2013 - 2014 2014 - 2015 2015 - 2016 2016 - 2017 2017 - 2018
Forecast
2,525,098
2,454,410
1,681,768
432,450
92,523
(295,585)
Revenue
14,907,683
18,298,966
15,071,550
16,754,211
17,204,547
17,783,971
Expenditures
Salaries & Wages
Benefits & Taxes
Capital Outlay
Debt Service
Garage Charges
Operations Transfer
Billed Services
Fund Transfers
Total Expenditures
7,479,104
4,241,687
1,231,280
250,000
384,000
255,800
1,097,900
13,400
25,200
14,978,371
7,687,720
4,639,480
1,255,906
50,000
363,140
360,000
1,183,460
13,802
18,100
3,500,000
19,071,608
7,964,478
4,809,315
1,281,024
50,000
577,961
370,800
1,234,431
14,216
18,643
16,320,868
8,251,199
5,254,332
1,306,644
30,000
549,181
381,924
1,287,013
14,643
19,202
17,094,138
8,548,242
5,380,102
1,332,777
30,000
548,453
393,382
1,324,839
15,082
19,778
17,592,655
8,855,979
5,846,068
1,359,433
30,000
385,683
405,183
1,374,005
15,534
20,372
18,292,257
Ending Balance
2,454,410
1,681,768
432,450
92,523
(295,585)
(803,871)
Based on the assumptions used in the forecast, the fire fund will run out of money in 2016/17.
This includes a substantial increase in funding of 8.8 percent from both the City and District #2
by increasing the agreed levy amount to the fire fund from 1.1850 to 1.3000 per $1,000 of
assessed value.
Changes in assumption for AV, CPI-U, and wages and benefits could alter the overall projection
of these assumed values. The assumptions and results above do not include any costs for the
unfunded liabilities for pension and medical insurance.
DCRFPD #2 Status Quo Financial Forecast, 2013/14 – 2017/18
ESCI typically uses the assumptions outlined in the section entitled Economic Indicators to
project the financial stability of the District. In this case, the economic indicators are being used
to validate the assumptions made by the Bend Finance Department in its five-year financial
projection of the fire department. Although noted earlier, the finance department assumptions
are repeated here for ease of reading.
Assessed Valuation
102
Revenue
Charges for services increase 2.0 percent
Expense
Material and Supplies increase at 2.0 percent per year
Interfund transfers increase at 3.0 percent per year
COLA increases to wages increase at 3.0 percent per year
Benefit increases
o
Pension cost increase 3.7 percent in 2013/14 and 2014/15, increase an
additional 3.0 percent in 2015/16 and 2016/17 and experience another 3.0
percent increase in 2017/18
The assumptions used by the City are consistent with those that would have been used by
ESCI. Therefore the City’s forecast assumptions have been used to project future stability for
the District.
DCRFPD #2 Forecast Assessed Value (AV)
The forecast percent of growth for the AV from 2013/14 through 2017/18 are shown in the
following figure.
Figure 80: DCRFPD #2 AV Growth Rates by Year, 2013/14 – 2017/18
Year
Growth Rate
2013/14
2014/15
2015/16
2016/17
2017/18
2.50%
2.50%
3.00%
3.00%
4.00%
The next table illustrates forecast changes in the AV from 2013/14 through 2017/18 using the
growth factors noted above.
103
Figure 81: DCRFPD #2 Forecast AV, 2012/13 – 2017/18
Year
2012/13
2013/14
2014/15
2015/16
2016/17
2017/18
Assessed
Value
2,075,034,302
2,126,910,160
2,180,082,914
2,245,485,401
2,312,849,963
2,405,363,961
DCRFPD #2 FD Forecast Revenue
All revenue categories have been inflated at the Bend Finance Department projected increase
of 2 percent. Current property tax income is calculated based on the three previous years’
actual collection rate.
Figure 82: DCRFPD #2 Fire Revenue Forecast, 2012/13 – 2017/18
2012 - 2013
Budget
120,000
Property Taxes
2,750,929
Subtotal Property Tax Revenue
2,870,929
Levy Rate Collected
1.3257
Interest
5,000
Annexation Fee
1,000
Rent
6,600
Sign Income
1,000
Grant Income
10,000
Training Fees
5,000
30,500
Other
500
5,000
Intergovernmental Funds - Local
Total Revenue
2,935,529
Description
2013- 2014
122,400
2,853,463
2,975,863
1.3416
5,100
1,020
6,732
1,020
10,200
5,100
31,110
510
5,100
3,041,755
2014-2015
124,848
2,924,884
3,049,732
1.3416
5,202
1,040
6,867
1,040
10,404
5,202
31,732
520
5,202
3,116,942
2015-2016
127,345
3,012,630
3,139,975
1.3416
5,306
1,061
7,004
1,061
10,612
5,306
32,367
531
5,306
3,208,529
2016-2017
129,892
3,103,009
3,232,901
1.3416
5,412
1,082
7,144
1,082
10,824
5,412
33,014
541
5,412
3,302,826
2017-2018
132,490
3,227,130
3,359,619
1.3416
5,520
1,104
7,287
1,104
11,041
5,520
33,674
552
5,520
3,430,943
The “levy rate collected” is the average of fiscal years 2008/09 through 2011/12 for the actual
property taxes collected divided by the appraised value.
104
DCRFPD #2 Forecast Expenditures
Figure 83: DCRFPD #2 Fire Expenditure Forecast, 2012/13 – 2017/18
2012 - 2013
Budget
Salary & Wage
104,000
Benefits & Taxes
51,000
65,300
2,466,460
Debt
138,000
275,000
Capital Outlay
Contingency
60,111
Total Expenditures
3,159,871
Description
2013- 2014
2014-2015
107,120
52,530
66,606
2,508,094
127,892
50,000
2,912,242
110,334
54,106
67,938
2,558,255
126,598
50,000
2,967,231
2015-2016
113,644
55,729
69,297
2,862,656
130,285
50,000
3,281,611
2016-2017
2017-2018
117,053
57,401
70,683
2,919,909
133,897
50,000
3,348,943
120,565
59,123
72,096
2,978,306
132,473
50,000
3,412,562
The Bend service agreement in 2015/16 is projected to increase to $1.3000 per $1,000 of AV.
DCRFPD #2 Forecast Summary Fund Balance
The following figure depicts a summary forecast for fire operations from 2012/13 through
2017/18.
Figure 84: DCRFPD #2 Forecast Summary Fire Operations, 2012/13 – 2017/18
2012 - 2013
Budget
2013- 2014
309,225
84,883
214,478
364,189
291,108
244,991
Revenue
2,935,529
3,041,837
3,116,942
3,208,529
3,302,826
3,430,943
Expenditures
Salary & Wage
Benefits & Taxes
bend Service Contract
Debt
Capital Outlay
Contingency
Total Expenditures
104,000
51,000
65,300
2,466,460
138,000
275,000
60,111
3,159,871
107,120
52,530
66,606
2,508,094
127,892
50,000
2,912,242
110,334
54,106
67,938
2,558,255
126,598
50,000
2,967,231
113,644
55,729
69,297
2,862,656
130,285
50,000
3,281,611
117,053
57,401
70,683
2,919,909
133,897
50,000
3,348,943
120,565
59,123
72,096
2,978,306
132,473
50,000
3,412,562
84,883
214,478
364,189
291,108
244,991
263,372
Description
Beginning Balance
Ending Balance
2014-2015
2015-2016
2016-2017
2017-2018
Based on the assumptions used in the forecast, the District will have sufficient funds to operate
through 2017/18. This includes a substantial increase in funding of 8.8 percent by increasing the
agreed levy amount to the fire fund from 1.1850 to 1.3000 per $1,000 of assessed value.
105
Changes in assumption for AV, CPI-U, and wages and benefits could alter the overall projection
of these assumed values. The assumptions and results above do not include any costs for the
replacement of department vehicles or the unfunded liabilities for pension and medical
insurance.
Conclusion: Revenue Enhancement/Cost Avoidance Opportunities
The status quo section previously discussed depicted that fire operations will experience severe
financial shortfall in the coming years. In managing the shortfall, both revenue and expenditure
items must be reviewed to determine which provides the best opportunity for controlling the
shortfall.
Revenue Increase – Local Option Levy
In today’s difficult financial times, municipalities and fire districts do not like to discuss increasing
property taxes. However, one solution to the fiscal sustainability problem is to ask the voters to
approve a local option levy to fund the shortfall in revenue for the fire department.
The
incremental revenue generated by the levy would vary based on the levy amount. In the figures
below, local option levy amounts have been calculated at 0.1500 per $1000 of AV, 0.2000 per
$1,000 of AV, 0.2500 per $1,000 of AV and tax equalization amount for Bend of 0.2367 per
$1,000 of AV.
Figure 85: Bend Local Option Levy Revenue Impact
Year
City of Bend
AV
2013/14
8,449,259,022
2014/15
8,660,490,498
2015/16
8,920,305,213
2016/17
9,187,914,369
2017/18
9,555,430,944
5-Year Revenue Growth
106
Local
Option
Levy @
0.1500
1,267,389
1,299,074
1,338,046
1,378,187
1,433,315
6,716,010
Local
Option
Levy @
0.2000
1,689,852
1,732,098
1,784,061
1,837,583
1,911,086
8,954,680
Local
Option
Levy @
0.2367
1,999,940
2,049,938
2,111,436
2,174,779
2,261,771
10,597,864
Local
Option
Levy @
0.2500
2,112,315
2,165,123
2,230,076
2,296,979
2,388,858
11,193,350
Figure 86: DCRFPD #2 Local Option Levy Revenue Impact
DCRFPD #2
AV
Year
2013/14
2014/15
2015/16
2016/17
2017/18
2,126,910,160
2,180,082,914
2,245,485,401
2,312,849,963
2,405,363,961
5-Year Revenue Growth
Local
Option
Levy @
0.1500
Local
Option
Levy @
0.2000
319,037
327,012
336,823
346,927
360,805
1,690,604
425,382
436,017
449,097
462,570
481,073
2,254,138
Local
Option Levy
@ 0.2500
531,728
545,021
561,371
578,212
601,341
2,817,673
A combination of revenue streams generated by the local option levy which totals an additional
$2 million per year essentially offsets projected cost increases over the five-year projection with
a flat trajectory for the fund balance and provides the necessary funding for the apparatus
replacement schedule. Included in the City of Bend calculation is a local option levy amount of
0.2367 per $1,000 of assessed value. This is the amount that is required to increase the Bend
effective levy rate23 to the same levy rate that District #2 is taxing at, which is 1.4366 per $1,000
of AV. Thus, both agencies are taxing at the same rate and the collective revenue provides for
sustainable operations plus apparatus replacement.
Staffing Costs
As shown in the current conditions section of the report, BFD has six FTEs that are included in
the budget but are not currently filled. Based on the financial forecasts, filling these positions
may be affordable today but would also compound a looming financial shortfall that is projected
in 2017. Each position filled would result in increased manpower costs for salaries and benefits
of over $100,000. Creative staffing and deployment configurations may bridge the service gap
these vacant positions cause, such as peak activity units, non-urgent assessment units with
lighter staffing, or public-private partnerships.
EMS/Ambulance Program Costs
Currently, the BFD provides ambulance transport service staffed by fire department personnel
for the City of Bend, District #2, and portions of Crook County. The BFD budget identifies
revenue associated with the EMS/ambulance program but does not separate costs associated
with EMS/ambulance program other than medical supplies and debt amortization.
Further,
ambulance transport service costs are not differentiated from non-ambulance EMS first
23
Based on 2011/12 actual General Fund contribution to fire operations.
107
response costs. Thus, it is difficult to identify the actual cost of the ambulance transport mission
as distinct and separate from the EMS first response costs.
The following figure reflects the anticipated revenue generated by the ambulance transport
system.
Figure 87: BFD EMS/Ambulance 2012/13 Budget Revenue
Description
Revenue
Ambulance Transport
FireMed Memberships
Total Revenue
2012/13
Budget
Amount
1,303,700
139,400
1,443,100
The expense side of the ambulance transport system must be specifically segregated from the
EMS mission in order to evaluate the relative profit/loss of the ambulance component. Further,
a decision must be made regarding what level of EMS the BFD should provide separate from
the ambulance transport component in order to determine proportional expense allocations and
to quantify cost avoidance opportunities. Further analysis is warranted in this area.
108
Findings, Recommendations, and Plan of Implementation
ESCI agrees with the Bend Fire Department, Deschutes County Rural Fire Protection District
#2, and the City of Bend that the current model for fire service is not sustainable. The current
trajectory of the fire department has it consuming the fund balance by early in the 2016/2017
budget year. There will be a deficit fund balance, therefore requiring additional funds to be
allocated by the city and district.
In resolving any budget difficulties, both increasing revenues and decreasing expenses need to
be considered. In most cases the solution is a combination of the two. ESCI offers two
sequential steps to consider in addressing these budget impacts short of the governance
strategies previously addressed:
1. Review areas for possible increased efficiencies to reduce costs to the extent possible,
expand capacity to the extent possible, or lower standards and/or service levels. Such
areas include demand management; ambulance transport model and its impact on core
mission; creative deployment options; expanded EMS prevention education; number of
advanced medical certifications required; expansion of risk-specific volunteer pools (e.g.,
wildland firefighting); reducing inspection intervals; and outsourcing some support
activities (IT service, ambulance billing, and collection services).
2. Implement a local option levy for the fire department to generate additional revenue.
Property tax increases are never a popular topic with government officials or taxpayers
but if passed would provide significant funding. If either or both agencies implemented a
local option levy, which when combined generated an additional $2 million per year for
the fire department, the current operations would be sustainable for the five-year
window. The fund balance each year during that window has a flat trajectory, indicating
continued sustainability.
Beyond these steps, the only one of the four strategies discussed in this report which creates a
sustainable model for the foreseeable future is Strategy 1 - Annexation Initiative.
In this
scenario, Deschutes County Rural Fire Protection District #2 annexes the City of Bend into its
service area and the City receives its fire protection services from the newly expanded district.
The city taxpayers would then pay the district property tax rate, which is currently $1.4366. The
City of Bend tax rate would remain unchanged unless the City opted to voluntarily reduce its
collections to partially offset the tax increase its citizens experience under this scenario.
109
Strategy 1 – Annexation Initiative
Objective of Initiative
Combine the two organizations into a single agency by Deschutes County Rural Fire
Protection District #2 annexing the City of Bend for the purposes of providing fire
services.
Summary of Initiative
This strategy results in the City of Bend being annexed into DCRFPD #2 for the provision of fire,
rescue, and ambulance services. In doing so, the City of Bend taxpayers pay Deschutes #2’s
permanent levy rate for fire protection, resulting in a net increase in revenue to the expanded
fire district.24 The city residents pay the higher district permanent tax rate and continue to pay
the existing city permanent rate unless the City takes action to reduce the amount that it levies.
All operational resources of the Bend Fire Department, including staffing and administrative
configurations, are assimilated into the District. Ownership of capital assets may be transferred
to DCRFPD #2 and all personnel become employees of the expanded district. The following
discussion assumes that current service levels remain unchanged.
Affected Stakeholders
City of Bend
Deschutes County Rural Fire Protection District #2
Guidance
This initiative removes the City of Bend from its current role of provider of fire services,
relinquishing those services -- and the governance of it -- to Deschutes County Rural Fire
Protection District #2. The Board of Directors of DCRFPD #2 become the policy-makers for the
expanded district.
Existing district policies and procedures remain in effect until or unless
changed by the Board. The District will ultimately have to change many of its current policies
and procedures to accommodate the expanded numbers of employees and to address its
reconstituted role of direct service provision.
A decision will need to be made regarding the disposition of fire department capital assets
currently owned and operated by the City of Bend. These assets are currently relied upon for
the provision of fire services. They will undoubtedly be needed by the District to continue
24
Oregon Department of Revenue Tax Computation Manual, Appendix C – Boundary Changes – How
Boundary Changes Affect a District’s Taxing Authority and/or its Permanent Rate.
110
providing services to the same service area footprint. Not transferring these assets creates a
significant expense for the District in that it would be required to either acquire new assets or
lease/purchase these assets from the City.
Since the City currently provides administrative support to the fire department by way of human
resources, IT, finance and payroll, risk management, fleet maintenance and others, the District
will have to either provide those services itself by hiring additional expertise or by contracting
those services from the City or other outside provider.
The District, in its role as sole decision-maker under this scenario, is free to adjust the services
or service levels at any time by policy fiat. It becomes answerable to the electorate.
Fiscal Considerations & Sustainability
The District’s current permanent tax rate is $1.4366/$1,000 AV. Unchanged, this rate becomes
the rate the taxpayers of the City of Bend pay for fire protection. The District may, at its sole
discretion, adjust the rate downward, matching the combined revenue between the current
district rate and the current city payment rate to the Fire Fund. This would simply be trading
governance structures without addressing the issue of sustainability of operation. The District
can also adjust its rate to a level lower than the current permanent rate but higher than the city
contribution rate to arrive at an appropriate level for sustainability.
Tax Rates: As highlighted earlier in the report both the City of Bend and DCRFPD #2 have low
permanent levy rates when compared to other cities and fire districts in the state. Because of
these low rates current operation (status quo) cannot be supported with the level of funds being
received currently. The annexation of the City of Bend into DCRFPD #2 will allow for the
residents of the fire district to maintain the current levy rate but the City of Bend residents would
be required to pay more than they currently do if the City does not adjust its collections. The
amount of the increase would depend on any action taken by the City to reduce tax collections
to offset the increased levy rate for the fire district. An example of a city reducing its tax
collections to allow for the annexation into the neighboring fire district is the City of Redmond’s
annexation into Deschutes County Fire Protection District #1 to become Redmond Fire and
Rescue. The City of Redmond voters approved the annexation on November 2, 2010, with a
positive vote of 83.7 percent for the annexation. The City agreed to reduce its collections below
its authorized permanent levy rate by the same amount as the fire district’s permanent rate. A
similar process occurred between the City of West Linn and Tualatin Valley Fire & Rescue on
111
March 9, 2004. The table below depicts the levy rates’ impact before and after the annexation.
The total property tax revenue collected is the same amount but the levying agency is different.
Figure 88: Redmond Annexation Levy Rate Impact
Fiscal Year
City of
Redmond
Levy
Rate
DCRFPD #1
Levy Rate
6.1643
0
6.1643
0
1.7542
1.7542
4.4101
1.7542
6.1643
0
1.7542
1.7542
2010/11
City of Redmond
Fire District
Total Levy Rate
2011/12
City of Redmond
Fire District
Total Levy Rate
As shown in the figure above, the total permanent levy rate for the taxpayers of the City of
Redmond did not change.
The City of Bend would have to decide whether it should reduce its tax collections by an
equivalent of 1.4366 (from the current rate of 2.8035) to an equivalent total of 1.3699 to make
this strategy a net neutral tax impact for the City’s taxpayers. The City has the option of doing
nothing to its tax collections or reducing it by some level to strike a balance. The figure below
shows the cost impact to City taxpayers based on the amount of reduction in the City’s tax
collections. The calculations are based on an average home value of $217,100.25
Figure 89: Strategy 1 Annexed Property Tax Increase for Residents of Bend
Description
City of Bend Permanent Levy Rate
Equivalent Levy Rate Reduction
1.4366
1.0000
0.7500
0.5000
0.0000
Possible City Under-collected Levy Rate
Fire District Permanent Levy Rate
Total Levy Rate Impact
1.3669
1.4366
2.8035
1.8035
1.4366
3.2401
2.0535
1.4366
3.4901
2.3035
1.4366
3.7401
2.8035
1.4366
4.2401
$0
$95
$149
$203
$312
Property Tax Increase Per Resident
25
Option 1 Option 2 Option 3 Option 4 Option 5
2.8035
2.8035
2.8035
2.8035
2.8035
http://www.zillow.com/local-info/OR-Bend-home-value/r_50962/.
112
Fiscal Analysis
The 2012-13 budget data provided by the clients were used to combine financials of BFD, the
Fire Debt Fund, and DCRFPD #2 into a single fire district, as detailed in the following
discussion. The review does not include the impact on the City of Bend’s General Fund, as
Bend must decide on the proper tax collection reductions, if any, to balance fire service funding
needs and continue to meet the financial needs of the City.
Combined Assessed Value
Projected increases for new construction and appraised value of existing property utilize the
same assumptions used in the existing conditions portion of the report. The following table
demonstrates the assumptions used to develop future TAV amounts.
Figure 90: Projected Increases in Assessed Valuation
Year
2013/14
2014/15
2015/16
2016/17
201718
Growth Rate
2.50%
2.50%
3.00%
3.00%
4.00%
The following figure provides a view of the consolidated AV for the combined organization.
Figure 91: Strategy 1 Combined Assessed Valuation
Year
2012/13
2013/14
2014/15
2015/16
2016/17
2017/18
City of Bend
8,243,179,534
8,449,259,022
8,660,490,498
8,920,305,213
9,187,914,369
9,555,430,944
DCRFPD #2
2,075,034,302
2,126,910,160
2,180,082,914
2,245,485,401
2,312,849,963
2,405,363,961
Total AV
10,318,213,836
10,576,169,182
10,840,573,411
11,165,790,614
11,500,764,332
11,960,794,905
Fire Revenue
The initial development of fire revenue combines the 2012/13 budget data into a consolidated
statement by eliminating inter-agency or fund transactions.
113
Figure 92: Strategy 1 Budgeted Combined Revenue, 2012/13
Description
Safer Grant
Miscellaneous
Charge for Services
Interest
Annexation Fee
Rent
Sign Income
Grant Income
Training Fees
Other
Property Taxes
Facility Rent
Interest
Debt Proceeds
Total Revenue
Effective Levy Rate
Bend 2012 - DCRFPD #2 Fire Debt
Combined 2012 2013
2012 - 2013 Fund 2012 - Eliminations
2013
Forecast
Budget
2013 Budget
Forecast/Budget
233,500
2,458,915
9,200
2,035,000
122,900
9,768,168
280,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
14,907,683
0
0
0
0
0
0
0
120,000
5,000
1,000
6,600
1,000
10,000
5,000
30,500
500
5,000
2,750,929
0
0
0
0
2,935,529
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
227,500
600
6,100
0
234,200
0
(2,458,915)
0
0
0
0
0
0
0
0
0
0
0
0
(30,500)
0
0
0
(172,500)
0
(6,100)
0
(2,668,015)
233,500
0
9,200
2,035,000
122,900
9,768,168
280,000
120,000
5,000
1,000
6,600
1,000
10,000
5,000
0
500
5,000
2,750,929
55,000
600
0
0
15,409,397
1.2523
The eliminations above are:
Removing the $1.1850 property payment from DCRFPD #2 to BFD for fire services.
Removing the personal service contract paid to the DCRFPD #2 District Manager to
manage facilities for BFD.
Removing BFD fire station rent cost paid to DCRFPD #2. The remaining amount is the
rent paid by Bend Police Department for space used at the fire stations.
Removal of the allocation (in-kind) costs from the fire fund to handle debt administration
service fees.
The net result of the two agencies’ budget consolidation would result in a combined effective
levy rate of $1.2523 per $1,000 of assessed property value to maintain the current level of
services.
114
Fire Expense
A consolidated fire operations expense statement combines the 2012/13 budget data.
Figure 93: Strategy 1 Budgeted Combined Expense, 2012/13
Description
Bend 2012 - DCRFPD #2 2012
2013 Forecast - 2013 Budget
Salaries & Wages
Benefits & Taxes
Capital Outlay
Debt Service
Garage Charges
Operations Transfer
Billed Services
Fund Transfers
2013/14 Vehicle Replacement Debt
Loan Proceeds
Contingency
Total Expenditures
7,479,104
4,241,687
1,231,280
250,000
384,000
255,800
1,097,900
13,400
25,200
0
0
0
0
14,978,371
104,000
51,000
65,300
0
138,000
0
0
0
275,000
0
0
0
60,111
2,466,460
3,159,871
Fire Debt
Combined 2012 Fund 2012 - Eliminations
2013
2013 Budget
Forecast/Budget
0
0
7,583,104
0
0
4,292,687
600
(30,500)
1,266,680
0
0
250,000
227,500
0
749,500
0
0
255,800
0
0
1,097,900
0
0
13,400
6,100
(6,100)
300,200
0
0
0
0
0
0
0
0
0
0
0
60,111
0
(2,466,460)
0
234,200
(2,503,060)
15,869,382
Eliminations for expenditures are:
Removing the $1.1850 property payment from DCRFPD #2 to BFD for fire services
Removing the personnel service contract paid to the DCRFPD #2 District Manager to
manage facilities for BFD
Removing the allocation (in-kind) costs from the fire fund to handle debt administration
service fees.
Removing the service contract payment to Bend (and reducing the Bend revenue by the
same amount).
Fire Revenue, 2013/14 – 2018/19
In Figure 94, ESCI calculated the combined fire revenue for the new organization. The 2013/14
– 2017/18 levy rate used is the $1.4366 per $1,000 of assessed value at the 2011/12 District
collection rate of 93.9 percent. The 6.1 percent property taxes not collected are shown in the
prior year’s levy received.
All other line items have been increased by Bend Finance
Department’s five-year forecast.
115
Figure 94: Strategy 1 Fire Combined Revenue, 2012/13 – 2017/18
Description
Safer Grant
Miscellaneous
Charge for Services
Interest
Annexation Fee
Rent
Sign Income
Grant Income
Training Fees
Other
Property Taxes
Facility Rent
Interest
Debt Proceeds
Total Revenue
Combined 2012 2013
Forecast/Budget
233,500
0
9,200
2,035,000
122,900
9,768,168
280,000
120,000
5,000
1,000
6,600
1,000
10,000
5,000
0
500
5,000
2,750,929
55,000
600
0
0
15,409,397
2013 - 2014
2014 - 2015 2015 - 2016 2016 - 2017
0
0
0
0
10,000
10,000
2,075,700
2,117,214
0
0
0
0
0
0
122,400
926,817
5,100
5,202
1,020
1,040
6,732
6,867
1,020
1,040
10,200
10,404
5,100
5,202
0
0
510
520
5,100
5,202
14,266,907 14,623,580
56,100
57,222
0
0
0
0
3,570,000
0
20,135,889 17,770,311
0
0
10,000
2,159,558
0
0
0
949,988
5,306
1,061
7,004
1,061
10,612
5,306
0
531
5,306
15,062,288
58,366
0
0
0
18,276,387
0
0
10,000
2,202,749
0
0
0
978,487
5,412
1,082
7,144
1,082
10,824
5,412
0
541
5,412
15,514,156
59,534
0
0
0
18,801,837
2017 - 2018
0
0
10,000
2,246,804
0
0
0
1,007,842
5,520
1,104
7,287
1,104
11,041
5,520
0
552
5,520
16,134,722
60,724
0
0
0
19,497,742
For purposes of analysis, the annexation is shown to take place in the 2013/14 fiscal year.
Since this timeframe provides limited time to build capital replacement funds, the debt projected
to be incurred for vehicle replacements is included as currently projected.
Fire Expense
The following table summarizes the combined fire expense for the new organization.
All
projected expenditure increases are the same as shown in the current conditions section of the
report. The increase assumptions are:
Material and Supplies increase at 2 percent per year
Interfund transfers increase at 3 percent per year
Debt amortization schedules used to project expenditures by year
COLA increases to wages increase at 3 percent per year
Benefit increases
o Pension cost increase 3.7 percent in 2013/14 and 2014/15, increase an
additional 3 percent in 2015/16 and 2016/17, with another 3 percent increase in
2017/18
116
Figure 95: Strategy 1 Fire Combined Expense, 2012/13 – 2017/18
Combined 2012 2013
2013 - 2014
Forecast/Budget
Salaries & Wages
7,583,104
7,794,840
Benefits & Taxes
4,292,687
4,692,010
1,266,680
1,291,402
Capital Outlay
250,000
100,000
Debt Service
749,500
650,632
Garage Charges
255,800
360,000
Operations Transfer
1,097,900
1,183,460
Billed Services
13,400
13,802
Fund Transfers
300,200
18,100
0
610,629
0
0
Loan Proceeds
0
3,500,000
Contingency
60,111
0
0
0
Total Expenditures
15,869,382 20,214,875
Description
2014 - 2015
8,074,812
4,863,421
1,317,230
100,000
642,538
370,800
1,234,431
14,216
18,643
622,841
293,665
0
0
0
17,552,597
2015 - 2016 2016 - 2017 2017 - 2018
8,364,843 8,665,295 8,976,544
5,310,061 5,437,503 5,905,191
1,343,574 1,370,446 1,397,855
80,000
80,000
80,000
622,675
630,487
465,919
381,924
393,382
405,183
1,287,013 1,324,839 1,374,005
14,643
15,082
15,534
19,202
19,778
20,372
635,298
648,004
660,964
293,665
293,665
293,665
0
0
0
0
0
0
0
0
0
18,352,898 18,878,480 19,595,231
Included in the expenditures for the combined district is the encumbrance/reserving of funds for
vehicle replacement. This will allow the district the ability to purchase vehicles without financing
in future years.
Summary of Fire Operations
Revenue and expenditure activity for 2012/13–2017/18 is provided in the following table.
Figure 96: Strategy 1 Financial Summary of Combined Operations
Description
Beginning Balance
Combined 2012 2013
2013 - 2014 2014 - 2015 2015 - 2016 2016 - 2017 2017 - 2018
Forecast/Budget
2,545,923
2,085,938
2,006,953
2,224,667
2,148,156
2,071,513
Revenue
15,409,397 20,135,889 17,770,311 18,276,387 18,801,837 19,497,742
Expenditures
Salaries & Wages
Benefits & Taxes
Capital Outlay
Debt Service
Garage Charges
Operations Transfer
Billed Services
Fund Transfers
Loan Proceeds
Contingency
Total Expenditures
7,583,104 7,794,840 8,074,812
8,364,843
8,665,295 8,976,544
4,292,687 4,692,010 4,863,421
5,310,061
5,437,503 5,905,191
1,266,680 1,291,402 1,317,230
1,343,574
1,370,446 1,397,855
250,000
100,000
100,000
80,000
80,000
80,000
749,500
650,632
642,538
622,675
630,487
465,919
255,800
360,000
370,800
381,924
393,382
405,183
1,097,900 1,183,460 1,234,431
1,287,013
1,324,839 1,374,005
13,400
13,802
14,216
14,643
15,082
15,534
300,200
18,100
18,643
19,202
19,778
20,372
0
610,629
622,841
635,298
648,004
660,964
0
0
293,665
293,665
293,665
293,665
0 3,500,000
0
0
0
0
60,111
0
0
0
0
0
15,869,382 20,214,875 17,552,597 18,352,898 18,878,480 19,595,231
Ending Balance
2,085,938
2,006,953
2,224,667
2,148,156
2,071,513
1,974,024
117
Based on the assumptions included in the analysis, the summary for fire operations shows the
new combined fire district would generate adequate funding through 2017-18 and sustainably
beyond that.
Policy Actions
To initiate this strategy, the City must adopt a resolution or motion to propose annexation to a
district for the purpose of receiving service from the district. Upon adoption of an annexation
proposal, the governing body of the City shall certify to the district board a copy of the
proposal.26 If the district board approves the proposal, the district board shall adopt an order or
resolution to call for an election in the district.
Since the City exceeds 20 percent of the population of the District, the election must be held in
both the District and the City. Once the City receives a copy of the order or resolution from the
District approving the annexation issue, the City shall then call an election in the city on the date
specified in the order or resolution of the District Board, but not earlier than 90 days from the
date of the resolution approving the annexation issue.
If the electors of the city approve the annexation, the City’s governing body must certify to the
Deschutes County Board the fact of approval. If the electors of the District also approve the
election, the District Board must certify the results of the election to the City and the County
Board. Upon receipt of the certification from the City and the District, the County Board enters
an order annexing the territory included in the City to the District. Thereafter, the city territory is
annexed to the District and is subject to all liabilities of the District in the same manner and to
the same extent as other territory included in the district.27
Implementation Timeline & Milestones
It needs to be emphasized that all requirements must be met, and the details of the “Final
approved form” reported to the county assessor and the Department of Revenue by March 31
for changes to become effective at the start of the next fiscal year beginning July 1. This applies
to completed formations or other boundary changes, as well as those which have not become
final or effective by March 31, but which will be final prior to July 1.
26
27
ORS 198.866 Annexation of city to district; approval of annexation proposal; election.
Special District Management and Policy Resource Guide, 2009 Edition, page 192.
118
“Final approved form” means approved by the county board and approval of the map and
boundary description (as certified by a registered Oregon land surveyor, a registered engineer,
or the Department of Revenue). The boundary description can be certified by the Department of
Revenue, free of charge, if it is received no later than February 15. “Final approved form” also
means that all legal requirements have been met, including petitions, hearings, elections,
approved boundaries, and maps.
It is actually the county board’s responsibility to report all the necessary information to the
county assessor and the Department of Revenue. Therefore, all material filed with the county
board should be completed early enough to give the county board adequate time to complete
filing before the March 31 deadline.28
28
Special District Management and Policy Resource Guide, 2009 Edition, page 201.
119
Strategy 2 – New Fire District Initiative
Integration by Merger or Consolidation
In considering strategies other than annexation, the question of legal merger or consolidation
should be considered as potential alternatives. In the State of Oregon, integration of one or
more fire districts can be accomplished in one of two ways by statute:
merger29 or
consolidation.30
A merger is a complete integration of the two or more districts into one. One is absorbed into
and becomes part of the other agency. For two fire districts to merge, one ceases to exist
(merging agency) and the other becomes the surviving entity (merger agency).
Differing from merger, a consolidation occurs when fire districts cease to exist and an entirely
new fire district is formed. Like a merger, employees and volunteers become members of the
newly formed fire district. Existing elected officials positions are replaced by a newly elected
board of directors of the district.
Strategy 2 evaluates the concept of forming an entirely new fire district, including the City of
Bend, which is viewed as a consolidation. However, in this instance, there are not two or more
districts involved, only the one district and the City of Bend.
Combine the two organizations into a single agency by dissolving the fire district and
establishing a wholly new district that is inclusive of the City of Bend.
The strategy results in the formation of a new fire protection district, replacing the current
Deschutes County Rural Fire Protection District #2. In doing so, a new permanent tax rate is
also established. Staffing and administrative configurations will be combined, ownership of
capital assets is transferred to the new entity, and all current personnel become employees of
the new district.
The following discussion assumes that current service levels remain
unchanged.
29
30
Oregon Revised Statute 198.705(14).
Oregon Revised Statute 198.705(5).
120
City of Bend
Guidance
Under the initiative an entirely new fire district is created and the existing fire district ceases to
exist.
In the process, a new board of directors is elected, consisting of five members
representing the new district and replacing the existing board.
A key distinction between this and other initiatives presented is that rather than funding
operations from the financial resources that are available under existing permanent tax rates, a
new tax rate is established. The new tax rate, however, is limited by statute, stating that a new
district may only establish a tax rate that will produce no more than the same revenue as the
local taxing districts would have cumulatively produced if the change had not occurred.
Approval by the voters of the proposed new district is required to form the district.
The district and city will first need to agree on a plan for the operation of the new district, and
how to present it to the electorate. Determination of the final form of the new district will result
from negotiation between the two agencies in advance.
The following components of an
effective plan are included in the negotiation and deliberation:
1.
Taxation and other revenue streams
2.
Organizational structure, including potentially contracting for or outsourcing support
services
3.
Administrative policies, procedures, rules & regulations
4.
Employment issues
5.
Operational issues/continuity
a. Services to be provided
b. Service levels
6.
Asset transfers, capital equipment & facilities planning
An organizational structure must be crafted to identify how responsibilities will be addressed.
Included in the process, it is important to consider the services currently provided by the City of
Bend.
As discussed earlier in this report, numerous support services which currently are
provided by the City, will need to be addressed by a new district. These services may be
provided by the new organization or may be acquired by contract with the City or outsourced via
other external sources.
121
Policies, procedures and established practices that are in place in the Bend Fire Department will
need to be reviewed for any changes that may be necessitated by the change in governance.
The employment status of existing personnel must be determined including any issues that may
exist with regard to employment status, seniority and pension related concerns. The process of
transitioning employees from the city to the newly formed district must also be defined.
Disposition of capital assets will be determined between the City and the District. Upon creating
a new district, ownership of identified assets is typically transferred to the ownership of the new
jurisdiction. In the District’s case, the assets are required to be transferred to the new district,
since the old district will dissolve in the process of forming a new one. Conversely, City capital
resources are not required to be transferred and may be retained by the City but provided to the
new district under separate agreement.
Creating a new fire district will cause future funding issues similar to those discussed in the
status quo section of the report. This is caused by an overall reduction of the levy rate required
by legislation which states the new district may only establish a tax rate that will produce no
more than the same revenue that the local taxing districts would have cumulatively produced if
the change had not occurred. As shown in the following figure, the combined effective tax rate
for the new district would be 1.2593 per $1,000 of assessed value. This creates a slight
increase for Bend residents and a decrease for the residents of District #2.
If a new district rate is established at 1.2593, it would remain substantially lower than other fire
districts in the county. The chart below depicts the fire district rates of Deschutes County.
Figure 97: DCRFPD #2 Levy Rates
122
City
Permanent
Levy Rate
Local
Option
Bond
Levy
District #2
Cloverdale RFPD
La Pine RFPD
Sisters-Camp Sherman RFPD
Average Total Levy Rate
1.4366
1.4677
1.0924
1.5397
1.7542
2.7317
1.6704
0.0000
1.5600
0.0000
0.6400
0.0000
0.0000
0.3667
0.0000
0.0000
0.0000
0.1562
0.0000
0.2473
0.0673
Total
Levy
Rate
1.4366
3.0277
1.0924
2.3359
1.7542
2.9790
2.1043
Based on the preceding figure, the average permanent levy rate for Deschutes County fire
districts is 1.6704 per $1,000 of AV. This rate is considerably higher than the current District #2
rate and the contribution amount from the City of Bend
Fire Revenue
The initial development of fire revenue combines the 2012/13 budget data into a consolidated
statement by elimination interagency or fund transactions.
Figure 98: Strategy 2 Budgeted Combined Revenue, 2012/13
Description
Safer Grant
Miscellaneous
Charge for Services
Interest
Annexation Fee
Rent
Sign Income
Grant Income
Training Fees
Other
Intergovernmental Funds State
Property Taxes
Facility Rent
Interest
Debt Proceeds
Total Revenue
Effective Levy Rate
Bend 2012
- 2013
Forecast
DCRFPD
#2 2012 2013
Budget
Fire Debt
Fund 2012
- 2013
Budget
Eliminations
Combined 2012
- 2013
Forecast/Budget
233,500
2,458,915
9,200
2,035,000
122,900
9,768,168
280,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
120,000
5,000
1,000
6,600
1,000
10,000
5,000
30,500
500
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(2,458,915)
0
0
0
0
0
0
0
0
0
0
0
0
(30,500)
0
233,500
0
9,200
2,035,000
122,900
9,768,168
280,000
120,000
5,000
1,000
6,600
1,000
10,000
5,000
0
500
0
0
0
0
0
0
14,907,683
5,000
2,750,929
0
0
0
0
2,935,529
0
0
227,500
600
6,100
0
234,200
0
0
(172,500)
0
(6,100)
0
(2,668,015)
5,000
2,750,929
55,000
600
0
0
15,409,397
1.2523
The eliminations above are:
Removing the 1.1850 property payment from DCRFPD #2 to BFD for fire services
Removing the personnel service contract paid to the DCRFPD #2 administration
manager to manage facility for BFD
123
Removing BFD fire station rent cost paid to DCRFPD #2. The remaining amount is the
rent paid by Bend police department for space used at the fire stations
service fees.
The net result of the two agencies’ budget consolidation would result in a combined effective
levy rate of $1.2523 per $1,000 of assessed property value.
Fire Expense
A consolidated fire operations expense statement combines the 2012/13 budget data.
Figure 99: Strategy 2 Budgeted Combined Expense, 2012/13
Description
Salaries & Wages
Benefits & Taxes
Capital Outlay
Debt Service
Garage Charges
Operations Transfer
Billed Services
Fund Transfers
2013/14 Vehicle Replacement
Debt
Loan Proceeds
Contingency
Total Expenditures
7,479,104
4,241,687
1,231,280
250,000
384,000
255,800
1,097,900
13,400
25,200
0
104,000
51,000
65,300
0
138,000
0
0
0
275,000
0
Fire Debt
Fund 2012
- 2013
Budget
0
0
600
0
227,500
0
0
0
6,100
0
0
0
0
0
0
60,111
2,466,460
3,159,871
0
0
0
0
234,200
Bend 2012 2013
Forecast
14,978,371
DCRFPD #2
2012 - 2013
Budget
0
0
(30,500)
0
0
0
0
0
(6,100)
0
Combined
2012 - 2013
Forecast/
Budget
7,583,104
4,292,687
1,266,680
250,000
749,500
255,800
1,097,900
13,400
300,200
0
0
0
0
(2,466,460)
(2,503,060)
0
0
60,111
0
15,869,382
Eliminations
Eliminations for expenditures are:
Removing the 1.1850 property payment from DCRFPD #2 to BFD for fire services
Removing the personnel service contract paid to the DCRFPD #2 administration
manager to manage facility for BFD
service fees.
Fire Revenue, 2013/14 – 2017/18
In Figure 94, ESCI calculated the consolidated fire revenue for the new organization. The
2013/14 – 2017/18 levy rate used is the 1.2593 per $1,000 of assessed value at the 2011/12
124
District collection rate of 93.9 percent. The 6.1 percent property taxes not collected are shown in
the prior year’s levy received.
All other line items have been increased by Bend Finance
Department’s five-year forecast.
Figure 100: Strategy 2 Fire Combined Revenue, 2012/13 – 2017/18
Description
Safer Grant
Miscellaneous
Charge for Services
Subsidy Training
Center Rent
Oper Subsidy from Gen
Fund
Projected Add'l City
Subsidy
Prior Year Levy
Received
Interest
Annexation Fee
Rent
Sign Income
Grant Income
Training Fees
Personal Service
Contracts
Other
Intergovernmental
Funds - State
Property Taxes
Facility Rent
Interest
Debt Proceeds
Total Revenue
Effective Levy Rate
Consolidated
2012 - 2013
Forecast/Budget
2013 2014
2014 - 2015
2015 2016
2016 2017
2017 2018
233,500
0
9,200
2,035,000
0
0
10,000
2,075,700
0
0
10,000
2,117,214
0
0
10,000
2,159,558
0
0
10,000
2,202,749
0
0
10,000
2,246,804
122,900
0
0
0
0
0
9,768,168
0
0
0
0
0
280,000
0
0
0
0
0
120,000
5,000
1,000
6,600
1,000
10,000
5,000
122,400
5,100
1,020
6,732
1,020
10,200
5,100
812,433
5,202
1,040
6,867
1,040
10,404
5,202
832,744
5,306
1,061
7,004
1,061
10,612
5,306
857,726
5,412
1,082
7,144
1,082
10,824
5,412
883,458
5,520
1,104
7,287
1,104
11,041
5,520
0
500
0
510
0
520
0
531
0
541
0
552
5,000
2,750,929
55,000
600
0
0
15,409,397
1.2523
5,100
12,506,137
56,100
0
0
3,570,000
18,375,119
1.1825
5,202
12,818,791
57,222
0
0
0
15,851,137
1.1825
5,306
13,203,354
58,366
0
0
0
16,300,209
1.1825
5,412
13,599,455
59,534
0
0
0
16,766,374
1.1825
5,520
14,143,433
60,724
0
0
0
17,382,068
1.1825
For analytical purposes the consolidation is shown to take place in 2013/14 fiscal year. Since
this timeframe provides limited time to build capital replacement funds, the debt projected to be
incurred for vehicle replacements is included as currently projected.
125
Fire Expense
The following table summarizes the consolidated fire expense for the new organization. All
expenditure projected increases are the same as shown in the status quo section of the report.
The increase assumptions are:
Material and Supplies increase at 2 percent per year
Interfund transfers increase at 3 percent per year
Debt amortization schedules used to project expenditures by year
COLA increases to wages increase at 3 percent per year
Benefit increases
o Pension cost increase 3.7 percent in 2013/14 and 2014/15, increase an
additional 3 percent in 2015/16 and 2016/17, with another 3 percent increase in
2017/18
Figure 101: Strategy 2 Fire Combined Expense, 2012/3 – 2017/18
Description
Salaries & Wages
Benefits & Taxes
Capital Outlay
Debt Service
Garage Charges
Operations Transfer
Billed Services
Fund Transfers
Reserves/Engine
Replacement
2013/14 Vehicle
Replacement Debt
Loan Proceeds
Contingency
Total Expenditures
Combined 2012
- 2013
Forecast/Budget
7,583,104
4,292,687
1,266,680
250,000
749,500
255,800
1,097,900
13,400
300,200
2013 2014
2014 2015
2015 2016
2016 2017
7,794,840
4,692,010
1,291,402
100,000
650,632
360,000
1,183,460
13,802
18,100
8,074,812
4,863,421
1,317,230
100,000
642,538
370,800
1,234,431
14,216
18,643
8,364,843
5,310,061
1,343,574
80,000
622,675
381,924
1,287,013
14,643
19,202
8,665,295
5,437,503
1,370,446
80,000
630,487
393,382
1,324,839
15,082
19,778
8,976,544
5,905,191
1,397,855
80,000
465,919
405,183
1,374,005
15,534
20,372
0
610,629
622,841
635,298
648,004
660,964
0
0
60,111
0
15,869,382
0
3,500,000
0
0
20,214,875
293,665
0
0
0
17,552,597
293,665
0
0
0
18,352,898
293,665
0
0
0
18,878,480
293,665
0
0
0
19,595,231
2017 2018
Included in the expenditures for the new fire district is the encumbrance/reserving of funds for
vehicle replacement. This will allow the district the ability to purchase vehicles without financing
in future years.
126
Summary of Fire Operations
Revenue and expenditure activity for 2012/13– 17/18 is provided in the following table.
Figure 102: Strategy 2 Financial Summary of Combined Operations
Description
Consolidated
2012 - 2013
Forecast/Budget
Beginning Balance
2,545,923
2,085,938
15,409,397
Revenue
2013 2014
2014 2015
2015 2016
2016 2017
2017 2018
246,183
(1,455,277)
(3,507,965)
(5,620,071)
18,375,119
15,851,137
16,300,209
16,766,374
17,382,068
7,583,104
4,292,687
1,266,680
250,000
749,500
255,800
1,097,900
13,400
300,200
7,794,840
4,692,010
1,291,402
100,000
650,632
360,000
1,183,460
13,802
18,100
8,074,812
4,863,421
1,317,230
100,000
642,538
370,800
1,234,431
14,216
18,643
8,364,843
5,310,061
1,343,574
80,000
622,675
381,924
1,287,013
14,643
19,202
8,665,295
5,437,503
1,370,446
80,000
630,487
393,382
1,324,839
15,082
19,778
8,976,544
5,905,191
1,397,855
80,000
465,919
405,183
1,374,005
15,534
20,372
Expenditures
Salaries & Wages
Benefits & Taxes
Capital Outlay
Debt Service
Garage Charges
Operations Transfer
Billed Services
Fund Transfers
Reserves/Engine
Replacement
2013/14 Vehicle
Replacement Debt
Loan Proceeds
Contingency
Total Expenditures
0
610,629
622,841
635,298
648,004
660,964
0
0
60,111
15,869,382
0
3,500,000
0
20,214,875
293,665
0
0
17,552,597
293,665
0
0
18,352,898
293,665
0
0
18,878,480
293,665
0
0
19,595,231
Ending Balance
2,085,938
246,183
(1,455,277)
(3,507,965)
(5,620,071)
(7,833,234)
Based on the assumptions included in the analysis, the summary for fire operations shows the
new fire district would struggle financially from the onset generating multi-million dollar operating
losses per year. Financially, this option is not a viable alternative.
Policy Actions
The types of services the new district will provide and the level to which it will provide them must
be determined. The electorate must understand exactly what it can expect to receive in terms
of service and service levels should the new district be formed.
The current 2011-2013
Deployment Plan quantified the exact nature of the services which are currently being provided
and the degree to which service level objectives are being met. The current demand placed on
the existing infrastructure will not change with new governance. The demand may shift if the
127
new district decides to change its service menu or service levels. As stated earlier, services
and service levels currently provided are assumed to continue in this scenario.
Negotiation of the terms and conditions of the initiative should occur between the two agencies
as they discuss and make decisions about the consolidated service approach. It is important to
recognize that a single board will make decisions about the new independent agency by
majority rule once a new district is formed. After formation, the City relinquishes all future
decision-making authority related to the provision of services, funding, and governance to the
new fire protection district board. The District #2 board will cease to exist.
The policies, procedures, and legal constructs of existing organizations will need to be
considered. Even though the existing fire department policies and practices are vacated in the
process of forming a new district, it is prudent to review them in their current form to capture
best practices and incorporate them into the new agency as a matter of good business practice.
The following steps are identified for completing the consolidation process, establishing a new
fire district:
1. Establish a working committee.
a. Set up community meetings and contact local agencies.
b. Draft maps and research property values.
2. Review estimated costs and boundaries at public meetings.
3. Draw up petitions. Submit the prospective petition to the county clerk and begin
preparing an Economic Feasibility Statement.
4. Circulate petitions. Obtain resolutions from any affected cities.
5. Submit petitions, Economic Feasibility Report, and security deposit 180 days prior to
election to County Clerk and Surveyor for review.
6. County schedules hearing date and bond posted.
7. County holds initial hearing.
8. County holds second hearing.
9. County enacts formation resolution or schedules election date.
10. Formation materials submitted to Department of Revenue.
11. Submit formation to Assessor's Office.
12. Hold levy and board election. Permanent tax rate elections may only be held in May
or November of even-numbered years.
Note: If there is a formation election held, the permanent tax rate, if any, must be included in
that election.
128
Strategy 3 – Consolidation with other Fire Districts Initiative
Combine the two existing organizations with one or more neighboring fire districts by
consolidating the districts and city.
Under Oregon Law, two or more fire districts that provide similar services may merge their
operations into a “surviving” district, essentially absorbing one entity into the other.31 In Strategy
3, ESCI explores several potential merger opportunities involving neighboring fire districts.
City of Bend
Neighboring fire districts, depending on the scenario selected
Guidance
A merger is a complete integration of the two or more fire districts into one surviving entity. For
fire districts to merge, one or more ceases to exist (merging agency) and the other becomes the
surviving district (merger or successor agency). The employees and volunteers of the merging
agency are transferred to the merger agency. Stated otherwise, districts that are merged into
others are viewed as annexed by and absorbed into the successor district, as opposed to the
formation of an entirely new district.
Governance is also assimilated into a single organization. Existing elected positions are either
eliminated from the merging district(s) or brought into the merger district through an agreement
to re-configure the composition of the surviving board of directors. A five-member board will
result.
A merger between two or more districts requires a decision as to which agency will be the
surviving agency and which agency or agencies will dissolve into the surviving agency. The
merger is subject to approval of the respective boards and the communities’voters.
Concurrently, a decision regarding how services will be provided in the City of Bend will be
necessary. Three alternatives may be considered:
31
ORS 198.885 – 198.895.
129
Inclusion of the city in the merger process, as provided in ORS 198.895(3).
Annexation of the city into the existing DCRFPD#2 which is subsequently merged with
one or more neighbors.
Provision of services via Intergovernmental Agreement as provided under statute.32
The strategy may be developed using a variety of alternative scenarios depending on which
neighboring fire district is being considered.
Of key importance is the manner in which
permanent tax rates will be calculated when agencies are merged. The Oregon Fire District
Director’s Association summarizes the process, as follows:
Where two or more districts have consolidated or merged, the permanent tax rate of the
surviving or successor district is the rate that will produce the same tax revenue as the
local taxing districts would have cumulatively produced in the year of the consolidation if
the change had not occurred. Oregon Constitutional Article XII, Section 11(3) (d). In
other words, the total amount that could have been taxed in each district is added
together and spread over the assessed valuation of the surviving or successor district.33
With the above in mind, ESCI considers possible district combination alternatives in the
following section.
The following figure details current tax rates in Deschutes County Rural Fire Protection District
#2 and neighboring districts.
Figure 103: Current District Tax Rates
City
DCRFPD #2
Cloverdale RFPD
La Pine RFPD
Sisters Camp Sherman RFPD
Average Total Levy Rate
Permanent
Levy Rate
1.4366
1.4677
1.0924
1.5397
1.7542
2.7317
1.6704
Local
Option
0.0000
1.5600
0.0000
0.6400
0.0000
0.0000
0.3667
34
Bond
Levy
0.0000
0.0000
0.0000
0.1562
0.0000
0.2473
0.0673
Total Levy
Rate
1.4366
3.0277
1.0924
2.3359
1.7542
2.9790
2.1043
Since Bend has the largest tax base in the county, merging with Bend helps the other
fire districts with a correspondingly smaller increase for Bend. Of course this does not consider
32
Oregon Revised Statute Chapter 190.
Special District Management and Policy Resource Guide. Oregon Fire District Director’s Association
and Special District’s Association of Oregon, 2009, Page 184.
34
Sunriver Fire Department is not included as its funding is through Sunriver Service District. The
permanent levy rate for the service district is 3.4500 per $1,000 of AV.
33
130
optimizing the affected departments or service levels. If this issue is explored further, additional
information will need to be gathered from the participating fire districts.
To establish a fundamental appreciation for the financial effects that could be expected if Bend
and DCRFPD #2 were to enter into a merger process with other districts, ESCI developed the
following financial comparisons. The table below summarizes the current effective/permanent
tax rates for Bend and District #2 in various combinations with other area fire districts.
Figure 104: Current AV, Levy and Taxes Levied – Bend, District #2, and Redmond FR
Description
Bend
DCRFPD #2
Redmond Fire & Rescue
AV
8,243,179,534
2,075,034,302
2,693,248,903
Total 13,011,462,739
Property Taxes Levied at Permanent Rate
Levy
Rate
1.2339
1.4366
1.7542
Property
Taxes Levied
10,171,259
2,980,994
4,724,497
17,876,751
1.3739
In the preceding example, Bend and District #2 merge with Redmond Fire & Rescue.
Considering the limitation that a successor district may only establish a tax rate that will produce
the same revenue as the local taxing districts would have cumulatively produced if the change
had not occurred, the resulting available revenue that could be developed is $17,876,751. The
new permanent levy rate would be 1.3739 per $1,000 of AV. This rate would result in a tax
increase for the residents of Bend and tax decreases for DCRFPD #2 and Redmond Fire &
Rescue.
The combined operating budgets for the three agencies provide the opportunity to potentially
reduce administrative costs and in-kind cost for the new organization which could result in cost
reduction. However, without an increase in revenue, expenditures will out-pace revenue and the
new district will have the same long-term revenue shortfall in the 2016/17 timeframe as the
status quo analysis.
131
Figure 105: Current AV, Levy and Taxes Levied – Bend, District #2, and Sisters-Camp Sherman
Description
AV
Bend
DCRFPD #2
Sister Camp Sherman
8,243,179,534
2,075,034,302
696,616,367
Total 11,014,830,203
Levy Rate
1.2339
1.4366
2.7317
Property
Taxes Levied
10,171,259
2,980,994
1,902,947
15,055,200
1.3668
In the preceding example, Bend and District #2 merge with Sisters-Camp Sherman.
Considering the limitation that a successor district may only establish a tax rate that will produce
the same revenue as the local taxing districts would have cumulatively produced if the change
had not occurred, the resulting available revenue that could be developed is $15,055,200. The
new permanent levy rate would be 1.3668 per $1,000 of AV. This rate would result in a tax
increase for the residents of Bend and tax decreases for DCRFPD #2 and Sisters-Camp
Sherman.
new district will have the same long term revenue shortfall in the 2016/17 timeframe as the
Figure 106: Current AV, Levy and Taxes Levied – Bend, District #2, and La Pine RFPD
Description
Bend
DCRFPD #2
La Pine RFPD
La Pine RFPD Local Option Levy
AV
8,243,179,534
2,075,034,302
1,115,145,874
1,115,145,874
Total 11,433,359,710
Property
Taxes Levied
1.2339
10,171,259
1.4366
2,980,994
1.5397
1,716,990
0.6400
713,693
15,582,937
1.3629
Levy Rate
In the above example, Bend and District 2 merge with La Pine RFPD. The resulting available
revenue that could be developed is $15,582,937. The new permanent levy rate would be
1.3629 per $1,000 of AV. This rate would result in a tax increase for the residents of Bend and
tax decreases for DCRFPD #2 and La Pine RFPD.
132
new district will have the same long-term revenue shortfall in the 2016/17 timeframe as the
Policy Actions
Under Oregon Statutes, merger of fire districts may be accomplished by any one of four
procedures, as listed below:
1. By petition filed by the electors of two or more districts with the boards of the districts
to be merged or consolidated.35
2. By petition of the electors of two or more districts with the district boards and by the
electors of a city with the city governing body, if the proposed consolidation includes
joining a city to the surviving or successor district.36
3. By duplicate petitions filed by the electors of a single district with the district board and
by the electors of a city with the city governing body, if the proposal is to join a city to the
district.37
4. Or by resolution adopted by the boards of two or more districts. If the merger or
consolidation proposes to join a city to the successor district, the city governing body
38
must also adopt a resolution approving the consolidation.
Numerous procedures for filing processing and filing a petition as listed above exist and are
detailed in state statute.39
The agencies must also develop a plan for the distribution of debt, which needs to be included
in the ballot presented to the voters. Distribution of existing indebtedness and a determination
of whether debt will transfer or remain with the original agency must be detailed.
The first step is to develop agreements between the agencies and establish a consensus on the
intentions and goals of the selected initiative. Once agreed, the desired petition ore resolution
option is determined, as listed above.
Once the petition process is completed or resolution adopted, a meeting of the affected
governing bodies is called for by the largest entity in population and an order detailing the plan
for governance of the successor district is established.
35
ORS 198.895(1).
ORS 198.895(3).
37
ORS 198.895(4).
38
ORS 198.895(5).
39
ORS 198.705 to 198.755.
36
133
The initiative is then submitted to the voters of the jurisdictions affected and, if approved, a joint
meeting of the governing bodies is convened to declare formation of the new district, at which
time the newly elected board adopts a resolution declaring the merger to be completed.
Additional regulations exist regarding the above described process and are provided in detail in
ORS 198.910 – 198.912.
134
Strategy 4 – Other Options Considered
Description of Options
The previous strategies considered include Deschutes County Rural Fire Protection District #2
annexing the City of Bend into its service area, Deschutes County Rural Fire Protection District
#2 and the City of Bend Fire Department dissolving to form a new fire district, and Deschutes
County Rural Fire Protection District #2 and the City of Bend Fire Department combining with
another neighboring agency. While those strategies represent the most common approaches to
regional partnerships, there are nuances which will be identified and address in this strategy.
a) Dissolve the agreement between Deschutes County Rural Fire Protection District #2 and
the City of Bend.
b) Establish a county-wide fire service agency, combining all fire service agencies into one.
c) Maintain the Status Quo
Discussion for each of these three options will be referred to by letter for ease of reference.
a) Deschutes County Rural Fire Protection District #2 and the City of Bend
b) Redmond Fire & Rescue, City of Bend, Deschutes County Rural Fire Protection District
#2, Black Butte Ranch Rural Fire Protection District, Sisters-Camp Sherman Rural Fire
Protection District, Cloverdale Rural Fire Protection District, La Pine Rural Fire
Protection District, Sunriver Fire Department
c) Deschutes County Rural Fire Protection District #2 and the City of Bend
Risk/Benefit Discussion
a) Dissolving the agreement between the two agencies allows each to address its revenue
difficulties independently, but it is a messy proposition. The funding, restructuring of
debt, and ownership/maintenance agreements between the two agencies make capital
reallocation exceedingly difficult. DCRFPD #2 has allocated the vast majority of its
resources into a fund transfer to the City of Bend to pay for fire protection. The District
would have to reconstitute a fire and EMS response capability if dissolution were to
occur. While it does have a reserve fund, it is insufficient to reconstitute a fire
department. Bend does not have a reserve fund and therefore does not have cash on
hand to fill the gaps created by a separation from DCRFPD #2.
Two fire stations are located within DCRFPD #2 and three stations are located at the
edge of the city limits. For the Bend Fire Department to establish its own capability, it
would be relying on stations located on the edge of the city responding into the city. The
ability to staff those stations would be substantially compromised in that the District
would no longer be contributing nearly $2.5 million to help pay for fire protection
services.
135
The result of dissolution between Bend and DCRFPD #2 would be two separate but
substantially weaker agencies with inefficient duplication, each unable to provide the
services they are currently able to provide together.
b) While economies of scale would undoubtedly be gained in such a venture as a countywide consolidation, those savings would likely be consumed by investing in filling the
gaps that likely exist between the agencies. There are wide differences in service levels
and funding for each agency in Deschutes County. Standardizing those services and
funding levels is impractical in the short term. Establishing differing levels of services by
risk or by population density could be accomplished, but funding levels are required to
be equalized, forcing significant subsidies to exist from community to community.
This option is a laudable goal, but would likely take many years of small steps toward
such an eventuality to be successful. Smaller combinations of agencies (combining
affinity groups) make sense in that these combinations can take advantage of smaller
economies of scale and smaller gaps. As these combinations address gaps, they can
also position the fire agency “clusters” to take advantage of eventual consolidations with
other similar clusters.
Over a period of time, there may be opportunity to combine all of the clusters into a
single or possibly two agencies serving all of Deschutes County. Again, such an
undertaking would require a clear vision, a clear plan, and buy-in by all administrations
and elected boards/councils, with a heavy dose of patience and determination. Fiscal
benefits would be difficult to predict without a detailed analysis of each agency, which is
beyond the scope of this project.
c) Doing nothing is always an option. However, this study was commissioned because
there is a problem with a lack of sustainability at current service levels. Maintaining the
status quo only ignores the looming crisis that faces the two agencies, making its
mitigation more difficult to rectify the longer action is delayed.
If nothing is done to change the financial circumstances facing the two agencies, the
agencies will be required to devolve from their current structure and capability to
something less than it is today. This can be a strategy, but should be done intentionally
and with a plan in place. If a planned devolution of services is to be implemented, the
new, lower level must be clearly identified and the costs of this new lower service must
be clearly identified.
Fiscal Implications
a) Dissolution of the contract between the two agencies will likely result in the total costs
remaining the same with a corresponding reduction in services due to the duplication
created by reinstating two separate agencies with two separate administrations and two
separate operational infrastructures in place.
b) Pursuit of a county-wide fire agency would likely result in the City of Bend’s effective tax
rate for fire protection going up while the other agencies in Deschutes County would go
down. The City of Bend has the lowest effective tax rate for fire protection in the county.
As the population center for the county, a single penny in effective tax rate has a much
greater impact on revenues than any of the other agencies. Thus, Bend would
effectively subsidize the other agencies and the services would likely improve in those
other agencies.
136
c) The current fiscal trajectory of the Bend/DCRFPD #2 partnership is toward a lack of
sustainability. If nothing is done to change this trajectory, either with new revenues,
reduced services, or a change in governance model (which brings with it a change in the
fiscal equation), the fire department will face layoffs or other drastic measures to
maintain solvency.
Policy Implications
a) Dissolution of the contract is not recommended. It would reduce service and keep costs
approximately the same. Both agencies would be weaker and less able to provide
quality services the taxpayers are currently enjoying.
b) Pursuit of a county-wide fire service agency is not recommended in the short term. A
great deal of planning must be done to afford this option a reasonable chance of
success. While this is an appropriate long-term option worth considering, this will not
become a reality in time to prevent Bend and DCRFPD #2 from having to make serious
cuts to their current infrastructure.
c) Status quo is not recommended. It does not address the revenue shortfall issues facing
the agencies currently. Service reductions could forestall the revenue shortfall
anticipated for a short period of time, but this should only be done if no other strategy is
considered. While it is true that “you can’t tax yourself to prosperity”, you also “can’t cut
yourself to prosperity” either. The current revenue structure is the lowest in the county.
A balance must be achieved for sustainability to become a possibility.
Guidance if Further Considered
a) For dissolution to be further considered, negotiations must occur to determine how best
to separate the agencies. It would likely require a neutral third party to negotiate
separation, since neither party can separate self-interest in the bargaining process.
b) For a county-wide consolidation to be further considered, a study should be
commissioned to analyze and quantify the detailed impacts and opportunities which
present themselves. The study should look 10 to 20 years into the future with a goal of
defining the vision and a plan for the desired end-state. Intermediate planning targets
should be identified. At achievement of each target, the organizational environment
should be reassessed, course corrections should be made as necessary and, if
appropriate, the next target pursued.
c) If no action is the result of this study, the parties must immediately engage in planning to
determine where to reduce services, by when, and then determine how to sustain that
new, lower level of service.
137
Appendices
Appendix A: Table of Figures
Figure 1: Area and Density, BFD and DCRFPD #2 .................................................................................... 11
Figure 2: City of Bend and Deschutes County Rural Fire Protection District #2 Boundaries ..................... 12
Figure 3: BFD Ambulance Service Area Boundary .................................................................................... 13
Figure 4: BFD Organizational Chart ............................................................................................................ 16
Figure 5: Administrative and Support Staffing ............................................................................................ 20
Figure 6: Operational Staffing ..................................................................................................................... 21
Figure 7: Firefighters per 1,000 Population ................................................................................................. 22
Figure 8: Field Operations Staffing Summary ............................................................................................. 22
Figure 9: Operational Staffing of Emergency Response Units ................................................................... 25
Figure 10: BFD Population Density, 2010 Census Data ............................................................................. 28
Figure 11: BFD Incident Density-All Incident Types, 2012 ......................................................................... 29
Figure 12: BFD Emergency Incident Density-All Incident Types, 2012 ...................................................... 30
Figure 13: BFD Fire Incidents over Incident Density, 2012 ........................................................................ 31
Figure 14: BFD EMS Incident Density, 2012 .............................................................................................. 32
Figure 15: BFD Eight Minutes Travel, Current Station Locations ............................................................... 33
Figure 16: BFD Station Concentration at Eight Minutes’ Travel ................................................................. 35
Figure 17: Critical Task Analysis Summary ................................................................................................ 36
Figure 18: Current BFD ERF Response Time Objectives .......................................................................... 37
Figure 19: BFD Personnel Concentration at Eight Minutes Travel ............................................................. 38
Figure 20: Turnout Time, January 2009 through October 2012 ................................................................. 39
Figure 21: Station Reliability by Agency, October 2011 through September 2012 .................................... 40
Figure 22: Fire Growth vs. Total Response Time ....................................................................................... 42
Figure 23: Cardiac Arrest Sequence ........................................................................................................... 43
Figure 24: Historical Arrival Time of First Dues Units by Agency, EMS & Structure Fire ........................... 44
Figure 25: General Training Competencies ................................................................................................ 47
Figure 26: West Station - 301 ..................................................................................................................... 56
Figure 27: Tumalo Station - 302 ................................................................................................................. 57
Figure 28: South Station - 303 .................................................................................................................... 58
Figure 29: East Station - 304 ...................................................................................................................... 59
Figure 30: North Station - 305 ..................................................................................................................... 60
Figure 31: Administration Building .............................................................................................................. 61
Figure 32: Training Center .......................................................................................................................... 62
Figure 33: Bend Frontline Apparatus Summary.......................................................................................... 64
Figure 34: Measure 50 Limits Taxable Value with MAV ............................................................................. 69
Figure 35: Impact of MAV on AV Growth .................................................................................................... 69
Figure 36: Deschutes County Total RMV and AV, 1997 to 2013 ............................................................... 71
Figure 37: Impact of Changing Market, 2008 – 2013 ................................................................................. 72
Figure 38: City of Bend 2012-13 Total General Government Rates by Code Area.................................... 73
Figure 39: DCRFPD #2 2012-13 Total General Government Rates by Code Area ................................... 73
Figure 40: City of Bend General Fund Revenue, 2012/13 Budget ............................................................. 74
139
Figure 41: City of Bend AV History, 2007/08 – 2012/13 ............................................................................. 75
Figure 42: Oregon Cities Population 50,000 – 100,000 Levy Rates Imposed, 2011/12 ............................ 75
Figure 43: BFD Approved FTEs vs. Actually Filled, 2012/13 Budget ......................................................... 76
Figure 44: BFD Fire Revenue History, 2008/09 – 2012/13......................................................................... 77
Figure 45: BFD Ambulance Revenue History, 2010/11 – 2011/12 ............................................................. 78
Figure 46: BFD Expenditures History, 2008/09 – 2012/13 ......................................................................... 79
Figure 47: BFD Category Percent of Expenditures History, 2008/09 – 2012/13 ........................................ 79
Figure 48: BFD Operations Transfer/ In-Direct Cost .................................................................................. 80
Figure 49: BFD Fire Fund Balance History, 2008/09 – 2012/13 ................................................................. 80
Figure 50: BFD Fire Station Debt Fund, Fiscal Years 2008/09 – 2012/13 ................................................. 81
Figure 51: BFD Debt ................................................................................................................................... 82
Figure 52: BFD Debt Amortization Schedule .............................................................................................. 83
Figure 53: BFD Vehicle Replacement Useful Life....................................................................................... 84
Figure 54: BFD Vehicle Replacement Plan Summary ................................................................................ 85
Figure 55: City of Bend Unfunded Pension Liability ................................................................................... 86
Figure 56: City of Bend Unfunded Other Post-Retirement Benefits Liability .............................................. 86
Figure 57: DCRFPD #2 Historical AV, 2007/08 – 2012/13 ......................................................................... 87
Figure 58: DCRFPD #2 Levy Rates and Taxes Imposed, 2012 ................................................................. 87
Figure 59: DCRFPD #2 Total General Fund Revenue, Fiscal Years 2008/09 – 2012/13 .......................... 88
Figure 60: DCRFPD #2 Total General Fund Expense, Fiscal Years 2008/09 – 2012/13 .......................... 88
Figure 61: Total General Fund Expense as a percent of Total, Fiscal Years 2008/09 – 2012/13 .............. 89
Figure 62: Fire Station Debt Fund, Fiscal Years 2008/09 – 2012/13 ......................................................... 90
Figure 63: DCRFPD #2 Debt Amortization Schedule ................................................................................. 91
Figure 64: DCRFPD #2 General Fund Summary, Fiscal Years 2008/09 – 2012/13 .................................. 92
Figure 65: Capital Improvement Fund, 2008/09 – 2012/13 ........................................................................ 93
Figure 66: Accrued Leave Fund, 2008/09 – 2012/13 ................................................................................. 93
Figure 67: Fire Education Fund, 2008/09 – 2012/13 .................................................................................. 94
Figure 68: City of Bend Median Value and Home Sales, 2007 – 2012 ...................................................... 95
Figure 69: Deschutes County Median Value and Home Sales, 2007 – 2012 ............................................ 96
Figure 70: Deschutes County Unemployment, 2002 – 2012 ...................................................................... 97
Figure 71: Graphical Unemployment 2002 – 2012 ..................................................................................... 97
Figure 72: Average CPI-U History, 2002 – 11/30/2012 .............................................................................. 98
Figure 73: Historic and Average CPI-U Graphic, 2002 – 11/30/2012 ......................................................... 98
Figure 74: CPI-U Forecast Budget Impact Graphic, 2013 – 2021 .............................................................. 99
Figure 75: Bend AV Growth Rates by Year, 2013/14 – 2017/18 .............................................................. 100
Figure 76: BFD Forecast AV, 2012/13 – 2017/18 ..................................................................................... 100
Figure 77: BFD Fire Revenue Forecast, 2012/13 – 2017/18 .................................................................... 101
Figure 78: BFD Fire Expenditure Forecast, 2012/13 – 2017/18 ............................................................... 101
Figure 79: BFD Forecast Summary Fire Operations, 2012/13 – 2017/18 ................................................ 102
Figure 80: DCRFPD #2 AV Growth Rates by Year, 2013/14 – 2017/18 .................................................. 103
Figure 81: DCRFPD #2 Forecast AV, 2012/13 – 2017/18 ........................................................................ 104
Figure 82: DCRFPD #2 Fire Revenue Forecast, 2012/13 – 2017/18 ....................................................... 104
Figure 83: DCRFPD #2 Fire Expenditure Forecast, 2012/13 – 2017/18 .................................................. 105
Figure 84: DCRFPD #2 Forecast Summary Fire Operations, 2012/13 – 2017/18 ................................... 105
140
Figure 85: Bend Local Option Levy Revenue Impact ............................................................................... 106
Figure 86: DCRFPD #2 Local Option Levy Revenue Impact .................................................................... 107
Figure 87: BFD EMS/Ambulance 2012/13 Budget Revenue .................................................................... 108
Figure 88: Redmond Annexation Levy Rate Impact ................................................................................. 112
Figure 89: Strategy 1 Annexed Property Tax Increase for Residents of Bend ......................................... 112
Figure 90: Projected Increases in Assessed Valuation ............................................................................ 113
Figure 91: Strategy 1 Combined Assessed Valuation .............................................................................. 113
Figure 92: Strategy 1 Budgeted Combined Revenue, 2012/13 ................................................................ 114
Figure 93: Strategy 1 Budgeted Combined Expense, 2012/13 ................................................................ 115
Figure 94: Strategy 1 Fire Combined Revenue, 2012/13 – 2017/18 ........................................................ 116
Figure 95: Strategy 1 Fire Combined Expense, 2012/13 – 2017/18 ........................................................ 117
Figure 96: Strategy 1 Financial Summary of Combined Operations ........................................................ 117
Figure 97: DCRFPD #2 Levy Rates .......................................................................................................... 122
Figure 98: Strategy 2 Budgeted Combined Revenue, 2012/13 ................................................................ 123
Figure 99: Strategy 2 Budgeted Combined Expense, 2012/13 ................................................................ 124
Figure 100: Strategy 2 Fire Combined Revenue, 2012/13 – 2017/18 ...................................................... 125
Figure 101: Strategy 2 Fire Combined Expense, 2012/3 – 2017/18......................................................... 126
Figure 102: Strategy 2 Financial Summary of Combined Operations ...................................................... 127
Figure 103: Current District Tax Rates ..................................................................................................... 130
Figure 104: Current AV, Levy and Taxes Levied – Bend, District #2, and Redmond FR ......................... 131
Figure 105: Current AV, Levy and Taxes Levied – Bend, District #2, and Sisters-Camp Sherman......... 132
Figure 106: Current AV, Levy and Taxes Levied – Bend, District #2, and La Pine RFPD ....................... 132
141
Appendix B: Summary Table of Stakeholder Interviews
Stakeholder
Date
Affiliation or Group
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Justin Finestone
Al Dertinger
Tom Wright
Shift Battalion Chiefs
Dick Ridenourr
Ed Keith
Joe Stutler
Ken Goodnight
Ray Miao
Dennis Luke
12/03/12
12/03/12
12/03/12
12/03/12
12/03/12
12/03/12
12/03/12
12/03/12
12/03/12
12/03/12
City of Bend Communications Manager
Deschutes #2 Board Member
Bend Fire & Rescue EMS Manager
Bend Fire & Rescue Shift Supervisors
External Community Stakeholder
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Julie Gregory
Oran Teater
Jade Maye
George Roshak
Shift crews (diagonal slice)
Civilian Staff
Local 939 Executive Board
Randy James
Rob Duvalle
Harold Ashford
12/03/12
12/03/12
12/03/12
12/03/12
12/03/12
12/03/12
12/03/12
12/03/12
12/03/12
12/04/12
Bend Fire & Rescue
Bend Fire & Rescue
Uniformed Represented Employees
Information Technology Director, City of Bend
Human Resources Director, City of Bend
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
Fire Prevention Staff
Scott Ramsay
Rob Poirier
Jim Clinton
Jodie Barram
Mark Taylor
Larry Medina
Doug Koellermeier
Eric King
Mark Capell
12/04/12
12/04/12
12/04/12
12/04/12
12/04/12
12/04/12
12/04/12
12/04/12
12/04/12
12/04/12
Bend Fire & Rescue
Bend City Councilor
Deschutes County 911 Director
Bend City Councilor
Bend City Councilor
Bend Fire & Rescue Training Chief
Bend Fire & Rescue Fire Marshal
Bend Fire & Rescue Operations Chief
Bend City Manager
Bend City Councilor
31.
32.
33.
34.
35.
36.
37.
Kent Haarberg
Sally Russell
Victor Chudowsky
Larry Huhn
Tom Fay
Tim Moor
Roger Johnson
12/04/12
12/04/12
12/04/12
12/05/12
12/05/12
12/05/12
12/05/12
Bend City Councilor
Bend City Councilor
Bend Fire & Rescue Fire Chief
Deschutes #2 District Manager
Redmond Fire & Rescue Fire Chief
Sisters-Camp Sherman Fire District Fire Chief
142
Corporate Offices
25200 SW Parkway Avenue, Suite 3
Wilsonville, Oregon 97070
800.757.3724
Eastern Region Office
111 Kilson Drive, Suite 208
Mooresville, North Carolina 28117
704.660.8027
© Copyright 2013. Emergency Services Consulting International. All Rights Reserved.
National Capital Region Office
4025 Fair Ridge Drive
Fairfax, Virginia 22033
703.273.0911

25200 SW Parkway Ave. Suite 3 | Wilsonville | Oregon | 97070 www

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