CENTRAL COVENTRY FIRE DISTRICT PRESENTATION. WHERE ARE WE NOW WHAT ARE THE OPTIONS

CCFD FIRE DISTRICT It is an Organization Formed by the People of the Central Coventry District Our Mission Statement: To provide excellent Fire and Rescue services to the people that live in CCFD

CCFD A Charter was written by “the people”, so that this Organization could be run effectively to offer the people, the best possible Fire and Rescue Services. In order for any business or organization to stay in operation it has to be run efficiently.

CCFD SPENDING EFFICIENTLY EFFICIENT BUDGET SPENDING MEANS BUYING THE BEST GOODS OR SERVICES, FOR THE MOST REASONABLE COST SPENDING MONEY EFFICIENTLY EXAMPLE – RUNNING A BUSINESS: STAFFING A HOSPITAL YOU WANT TO HIRE THE BEST SURGEONS, BUT YOUR HOSPITAL REVENUE IS LIMITED. YOU CAN’T HIRE THE MOST EXPENSIVE EVEN THOUGH YOU WOULD LIKE TO. YOU NEED MONEY FOR OTHER EXPENSES SUCH AS EQUIPMENT THE SURGEONS NEED TO OPERATE. Example. BANDAIDS x

In the Past-There has been a Lack of Spending Efficiency There was a lack of Spending Efficiency by the X-Chief of this Organization. There was a lack of financial transparency on the part of the Board of Directors. Outside Audits were not performed, which would have helped them control the spending. ************************************************** We have also found that there are loopholes in our Charter that need to be closed in order to operate more effectively. * Some of these loop holes allowed the Mismanagement of spending on contracts and loans that were entered into, that pushed this Organization into bankruptcy

CCFD – Our Charter Committee This Board has performed a study and we have a list of proposed changes that will be submitted for review and vote by the people. A Special meeting will be organized after the Annual Meeting to review and vote on these. The goal of these changes is to make sure that we don’t repeat the mistakes of the past and that our Organization is run by the Vote of the Central Coventry Residents and managed by the Board of Directors.

Equipment and Staff FIRE AND RESCUE ANALYSIS TO RUN THIS BUSINESS WE NEED FIRE AND RESCUE TRUCKS AND WE NEED SKILLED FIRE AND RESCUE PERSONNEL

EQUIPMENT In the last 4 years, no long range plan was ever established to create a fund, to save for equipment that would become obsolete. Expensive Equipment was purchased without the consideration that these purchases would limit what funds would be available to replace other Equipment reaching the end of it’s useful life in the years that followed. Here we are now, in need of Equipment with no money or ability to loan money in order to purchase it. We need a plan to purchase Fire and Rescue trucks.

Cost Analysis Salaries and Operating Costs

REVENUE Besides Tax collections used to fund this district – we collect Rescue money to cover expenses. If a homeowner calls for a CCFD Rescue, you are currently billed and the home owner submits this bill to their Healthcare Insurance or to their Home Owner’s insurance company for payment. That money is paid by the insurance company to CCFD. That is the Rescue Recovery money CCFD Collects. How many times have you had to call for Fire or Rescue assistance ? I have made one call for a Rescue in the 27 years that I’ve lived in CCFD The one bill I had to submit to my insurance company did Not increase my rates

YEAR Rates Residential Commercial Tax Revenue YTD (includes Rescue Recovery $) $5,623,521 $5,558,989 $5,251,805 $4,803,758 Salary Expenses $5,441,839 $5,058,283 $4,803,465 $3,864,082 What $$ $181,682$500,706$448,340 $939,676 was left Operating Exp $1,179,829 $1,138,663 $968,517 $1,017,907 Loss ($997,998) ($637,957) ($520,177) ($78,231) Contract/Salary Expenses increased by 37% over the last 4 years Salary Exp. $ Increase % increase 5,441,8395,058,2834,803,4653,864, ,556254,818939, %5.30%24.31%

Salary Expenses ACTUAL Fire Fighter Salaries 2,374,140 2,486,8822,405,0642,059,8941,900,606 Admin Salaries 121, ,932123,428114,616105,274 Overtime/Replace Jan-Sept 291, ,577850,0921,056,598465,264 Clothing $1500 ea.Differed66,90047,08350,50240,800 Collateral OT Differed26,77526,68022,84921,465 Holiday Pay 130, ,53372,74997,68385,871 Life and Vision Employee Ins 22,10020,47118,55011,900 Longevity 8.5% to 10% Differed 169,504101,20890,30162,266 Blue Cross Jan - Sept 455,918596,828461,810429,835448,916 Medical CoPays +Med.Needs117,488142,93491,064103,87368,986 Certification Bonus $2080 ea PEHP 161,431136,54595,85386,487 Pension 572,704462,188399,609370,129 Payroll Taxes Our cost of SS 264,739259,901263,302196,118 Total Salary Expenses5,441,8395,058,2834,803,4653,864,082

CONTRACT COST 2012 REGULAR HOURS$2,406, HOURS * EACH MANS NORMAL HOURLY RATE – 38 FIRE FIGHTERS HOLIDAY PAY$134, DAYS * 11 HOURS EACH * NORMAL HOURLY RATE CERT BONUS$81,120 $40 WEEKLY *52 WEEKS = $2080 * 39 MEN LONGEVITY$143, TO 10% BONUS EACH BASED ON REGULAR RATE CLOTHING$58,500 $1500 * 39 = MEDICAL COPAYS/CARDS $142,000 ( $91K in 2011, $103K in 2010, $69K in 2009) TOTAL REGULAR$2,966,300 OT REPLACEMENT COST VACATION$240,768 VariesYrs Service) 608 SHIFTS (based on yrs of service) * 11 HOURS EACH SHIFT = 6688 Hrs* $36 OT REPLACEMENT RATE SICK$178, SHIFTS EACH 451 SHIFTS * 11 HOURS =4961 HOURS * $36 OT REPLACEMENT RATE FAMILY$194, SHIFTS EACH 492 SHIFTS * 11 HOURS = 5412 * $36 OT REPLACEMENT RATE PERSONAL$32,472 2 SHIFTS EACH 902 SHIFTS * 11 HOURS * $36 OT REPLACEMENT RATE TOTAL OT REPLACEMENT$646,668 TOTAL SALARY COST$3,612,968 BLUE CROSS$598,000 PENSION$572,704 PHEP$161,431 PAYROLL TAXES$265,000 Other Personnel Cost$1,597,135 TOTAL CONTRACT EXPENSE$5,210,103

Salary Expenses $5,441,690 $5,058,283 $4,803,465 $3,864, Acceptable Basic Operating Budget Total Assessed Value Operating Forecasted Tax Property Values In Thousands Tax Rate Revenue Residential $ 1,495,161,785 $ 1,495,162 $ 2.50 $3,737,905 Commercial $ 293,910,651 $ 293,911 $ 3.75 $1,102,166 Tangibles $ 44,014,618 $ 44,015 $ 2.50 $110,038 Total Tax Value /Revenue $ 1,833,087,117$4,950,109 Forecasted Rescue Recovery $$ $ 600,000 Total Budget Forecast Revenue $5,550,109 Minus Operating Expenses ($ 1,400,000 ) Remaining money to cover Salary expenses $4,150,109

Guthrie Bill would force the Tax rate to 2.80 – a 54% increase & it’s still not enough to cover Operating and Salary Expense Salary $5,441,690 $5,058,283 $4,803,465 $3,864,082 The H6101- Fire District- bill submitted by Guthrie and Tommasso – Proposed That a 54% increase in your taxes $1.00 per thousand increase Basic Operating Budget Total Assessed Value Operating Forecasted Tax Property Values In Thousands Tax Rate Revenue Residential $ 1,495,161,785 $ 1,495,142 $ 2.80 $ 4,186,453 Commercial $ 293,910,651 $ 293,011 $ 4.20 $ 1,234,426 Tangibles $ 44,014,618 $ $ 2.80 $ 123,241 Total Tax Value /Revenue $ 1,833,087,117 $ 5,544,122 Forecasted Rescue Recovery $$ $ 600,000 Total Budget Forecast Revenue $ 6,144,122 Minus Operating Expenses including Debt Payments ( $ 1,400,000) Remaining money for Salaries $ 4,744,122

What Other Options are there? Charter Changes are necessary to create a different model.

Volunteers Pay on Call Firefighters Outside EMT Services

FIRE AND EMT PERSONELL Volunteers and Pay on Call Firefighters need Firefighter #1 training and other Driving and Hazmat classes- but training is available at local Fire Districts if it’s not available in ours. EMT Rescue Services In the EMT Rescue Service business there are two certifications an EMT can hold. The highest certification an EMT can earn is a Paramedic certification The next lower certification an EMT can earn is a Cardiac certification

COST AND QUALITY ANALYSIS CURRENTLY CCFD COST One EMT Cardiac Certified We have to purchase Trucks and Maintain Annual Salary Each $70 - $130K Contract states we must staff 44 men. AN EQUIVALENT OPTION Outside Professional Service All EMTs are Paramedic Certified Med Boxes on Board They supply their Rescue Trucks 1 Truck-24x7- Staffed by 2 Paramedics on every shift $75K annually (we need 3) They collect Rescue Recovery money C P P P

FIREFIGHTERS Pay On Call – Volunteers Pay on Call Fire Fighters in Smithfield, RI are being paid on average between $13-$15 per hour while they are On Call, without the expense of Retirement funding. Other people who have previously been volunteer firefighters from other towns, have offered to fill these positions for this rate. Entry level Firefighter’s salary in CCFD is $42K or $19.23 per hour without the cost of their Blue Cross or Retirement costs add to that hourly rate.

Collective Bargaining As we move forward, we need everyone involved in this process to be aware that there are other Fire Companies successfully providing the same services but doing it at a much lower cost. Operations in CCFD needs to understand that while their services are valuable, Tax Payers- are not willing to pay more then what other towns are paying. They don’t want to pay for the most expense business model CCFD is presenting to them. Reviewing the rates the Tax Payers have voted down, we need to consider what Reasonable rate they will approve. Once that rate is set, the Operations Management of this District must make sure that their contract costs and loans that exist, cannot exceed what that Rate/Total Revenue is. We need to Level Fund the Budget. That is what needs to be achieved if our common goal is to continue to operate CCFD under it’s current charter.

BUDGETS Currently we are reviewing the Chief’s Budget Request If the Board believes that the Tax Payer/Voters of this town will not agree to the Tax Rate required to meet the Chief’s Expense Budget – the Board will discuss with the Chief and make adjustments to it. Then the Board will present a “reasonable” budget to Judge Sterns for his Approval as he requested. This budget rate that we will present to you for a Vote-will be based on our research as to what it costs to purchase Quality Fire and EMT Services to offer Safety to the District. What the Voters and Tax payers need to understand is that if the Board’s Budget is not approved then based on the new legislation presented to the General Assembly by Scott Guthire, and Lisa Tommasso, the H6101 Bill, will force the last budget into place. The courts will then adopt a budget for us at a rate of 2.80 per thousand.

… VOTE—VOTE--GET OUT AND VOTE OCTOBER 21, Coventry High School 7pm – PAPER VOTE Spread the Word to your neighbors so that everyone is represented at the Vote To keep CCFD in business we need you to vote for a budget that the board will present at a reasonable rate–Please Spend one hour of your time to support us and VOTE !!!

Cost Analysis Revenue $5,623,521 $5,558,989 $5,251,805 $4,803,758 Total Salary Expenses $5,441,690 $5,058,283 $4,803,465 $3,864,082 Operating $1,179,829 $1,138,663 $968,517 $1,017,907 Loss ($997,998) ($637,957) ($520,177) ($78,231) Salary Expenses Increased by 37% between 2009 and 2012 Operating Expenses actually stay fairly consistent around $1 mil