Fire and EMS Departments: Mickey Shields, Iowa League of Cities Who’s in Charge and Whose Money is it Anyway? Mickey Shields, Iowa League of Cities Handouts and presentations are available through the event app and at www.iowaleague.org.

What You Must Do State code Section 364.16 State code Section 384.16 “Each city shall provide for the protection of life and property against fire and may establish, house, equip, staff, uniform, and maintain a fire department.” State code Section 384.16 City must adopt a budget State code Section 384.20 City must keep separate accounts “…which show an accurate and detailed statement of all public funds collected, received, or expended for any city purpose, by any city officer, employee, or other person…”

How Fire/EMS is Provided City department Township department Corporation (nonprofit and private) Benefitted Fire District 28E Agency

How Fire/EMS is Provided City Emergency Medical Services District County Emergency Medical Services District Contracted service Mutual Aid agreement County resolution for coverage

How Fire/EMS is Provided City department Most common type for fire services (less so for EMS) City adopts ordinance establishing fire and/or EMS department Includes provisions on duties and responsibilities Personnel, including fire chief Basic details on operations Defines city responsibility to manage and finance the department

How Fire/EMS is Provided 28E Agreements Chapter 28E of state code allows governmental entities to form partnerships to provide services and share resources Can also create a separate agency or board Commonly used for cities that provide fire/EMS services to area townships

How Fire/EMS is Provided 28E Agreements All 28E agreements must include the following: Duration of the agreement The precise organization, composition and nature of any separate entity created and the powers of such entity The purpose or purposes of the agreement The manner of financing the joint or cooperative undertaking The manner of establishing and maintaining a budget The permissible methods to be used to partially or completely terminate the agreement The permissible methods to be used to dispose of any property upon such termination Any other necessary and proper matters

How Fire/EMS is Provided Corporation/Contracted service A separate fire or EMS group may form as a nonprofit or private entity (more common for EMS) Many communities have separate nonprofit fire corporations, often called “fire associations” City may contract with separate entity, but that entity must then fund, manage, staff, equip, insure and operate the service

How Fire/EMS is Provided Mutual Aid agreements Very common for local governments, often involving city, county and townships Agreements are required by Section 28E.31 to be done in writing Should be considered as backup plan for services when necessary (not ongoing direct services)

Partnering with Other Entities Identify services to be provided/shared (who needs what) 24 hour service not needed? Area/regional cooperation needed? Equipment/facilities that can be shared Identify potential partners and representatives Cities, counties, townships that have similar needs Who will represent the city?

Partnering with Other Entities Communication is key Hold ample planning meetings and involve stakeholders Schedule timely reviews throughout year Provide data and reports Financial statements Service calls and activity logs Condition of equipment, gear Insurance issues

Partnering with Other Entities Funding is also key Who pays for what? And how much should everyone pay? Determine the entity that is responsible for controlling and accounting the funds Fire/EMS is often supported by donations – must decide proper accounting for funds and how they will be spent

Partnering with Other Entities Cost-sharing considerations Not all cities and not all townships are alike (understand what each entity needs and what they are capable of providing) Factor in services needed, average cost of different services, financial condition of partners Potential formula to use: %AV + %TC + %POP 3

Budgeting and Accounting City must account for all funds and expenditures Must be shown in annual budget and Annual Financial Report (also subject to audit/financial examination) This includes donated funds, revenue collected from service agreements and any other money brought in by the city fire department

Budgeting and Accounting Fire/EMS account within general fund Helpful to separate fire/EMS funds within city’s accounting system (and within general fund) Departmental account can be set up within general fund with beginning and ending fund balance Provides detailed accounting of fire/EMS revenues and expenditures (and should eliminate any concerns that funds are “lost” in city’s general fund)

Budgeting and Accounting Component units Audit and financial examination issue that city officials, fire/EMS personnel and separate associations must be aware of Pertains to organizations that exist entirely, or almost entirely, to financially support a governmental service Most fire associations/corporations would be considered a component unit City may be required to include association’s financial statements in city audit/exam

Budgeting and Accounting Successful budgeting Must have the following: Actual expenses and revenues for most recently completed fiscal year Estimated expenses and revenues for current fiscal year Proposed expenses and revenues for upcoming fiscal year Establish process to meet with fire/EMS personnel and receive requests

Budgeting and Accounting Successful budgeting Basic, annual factors to consider: Wages and benefits Training and instruction Liability, property and workers’ comp insurance Malpractice/errors and omissions coverage Maintenance, supplies and basic gear/equipment

Budgeting and Accounting Successful budgeting Capital improvements and equipment Budget for vehicles, equipment, apparatus, facilities and other major investments Annual appropriation to capital reserve funds Typical reserve funds include building, truck/vehicle and equipment Factor in depreciation for capital assets Consider policy on managing surplus funds

Budgeting and Accounting Successful budgeting Reports and measurements Activity reports – number of calls, types of calls, location, services required, etc. Track volunteer hours, broken down by on-duty and other hours (such as training) Equipment, gear, apparatus usage and condition Monthly/annual financial reports

Strategies for Successful Management What does your ordinance say? What do your bylaws say? Detail purpose of fire/EMS department and services that are to be provided Detail structure of department(s) How is the fire chief appointed? Dismissed? Is there a fire department board or committee? Is one needed?

Strategies for Successful Management Recruitment and retention of volunteers Most cities rely heavily (if not entirely) on volunteers to provide fire/EMS services Cities should regularly conduct recruitment efforts, even if currently fully staffed Retention is crucial to keep experienced, knowledgeable members on staff Recognize volunteers periodically (annual parties, volunteer of the year, longevity recognition, etc.)

Strategies for Successful Management Training and equipping Firefighters must at least complete training for Firefighter I classification under NFPA standards EMS providers also have minimum training standards Fire/EMS requires lots of equipment, gear, vehicles and apparatus Regularly maintain and upgrade equipment (develop schedule in accordance with department needs)

Strategies for Successful Management Working with fire association Most communities have a separate fire association (whose members are usually also on city department) Many are organized to conduct fundraising and other community outreach (which is great!!!) Beneficial for city and fire association to have formal agreement in place that details how any funds or donations (including donated equipment) is to be handled along with use of any city facility for association purposes

Strategies for Successful Management Working with fire association Both entities must understand that any funds donated or paid to city are required by state law to be accounted for in the city’s budget/accounting (and subject to audit/exam) Also helpful to detail how any grant applications and funds will be handled

Strategies for Successful Management Other issues to manage Volunteer firefighters may serve on city council City fire/EMS department may have authority to operate somewhat independently (if granted by ordinance) Handling expenditures and payments Application of open records/open meetings laws Council has duty to provide oversight

Thank You! Mickey Shields mickeyshields@iowaleague.org (515) 974-5316