Report to Lehigh Acres Fire District Commissioners from the Blue Ribbon Committee July 14,2009

Committee Purpose To Review the current financial status and make recommendations to remedy the financial crisis while maintaining adequate fire and rescue service to District constituents.

Present Situation LAFD tax revenues in will be dramatically reduced due to a 48.7% drop in property values. Requested Budget : $28,972,426 Total Revenue in : $17,745,047 Required Transfer from Reserve Funds to Balance $11,227,379

Financial Outlook for /10 “Business as usual Budget” (union 3% contract raise) $29.24 Million 2009/10 Projected Revenue $11.06 Million Projected Budget Shortfall $18.18 Million Using 100 % of Remaining Reserves $11.00 Million Projected Budget Shortfall $ 7.18 Million The District is Now Bankrupt & Unable to Operate We are Out of Business Citizens Lives and Property would be at Risk

Our Process

-Understand -Review -Tear Apart -Rebuild -Leave No Stone Unturned -Recommendations

Committee Position

These ARE Extraordinary Times. Times dictate EVERYONE do more with less. CHANGE is Not Popular. Raising the Tax Rate is NOT the answer. TOGETHER we can survive this Crisis.

Our Recommendations

2009/10 A Balanced Budget Not to Exceed $ Million Based on the Following Revenues: $9.283 Million in Ad Valorem Taxes $1.799 Million in Ambulance Billing $0.142 Million in Misc. Income $2.081 Million in Reserves

Our Recommendations Year Requested Budget (Not to Exceed) 2009/10$ Million 2010/11$ Million 2011/12$ Million 2012/13$ Million

What you can Expect

5 Stations with 5 ALS Engines & 5 Ambulances. 90 Fire Fighters, Paramedics & EMT Positions. 9 Administrative positions including Battalion Chiefs. 24/7 Protection

Changes to Expect

Personnel Staffing & Compensation Operations Union Contract Changes

Personnel

Personnel Effective 8/1/2009 Commissioners to Reduce Compensation to Zero. Provide for 90 Fire Fighter, Paramedic & EMT Positions, a Reduction of 17 Employees. Provide for a Maximum of 9 Administrative Employees including Battalion Chief Positions, a Reduction of 6 Employees. Effective 10/1/2009 Reductions in Overtime and Eliminate Holiday Pay. Reduce Payroll/Benefits to Reflect a 10% Reduction in Total Compensation.

Operations

Operations Freeze All Expenditures Immediately. Sale of Excess Vehicles. Develop a New Emergency Medical Policy to Reduce/Eliminate out of District Transport. Develop a Policy to Reduce/Stop the use of District Vehicles to Run Errands. Develop a Quarterly “Rolling” Budget Process. Negotiate Union Contract for 1 year by using a Professional and Not District Personnel.

Union Contracts

LAFD is Compensated in Top 90% of Paid Personnel in SWF Districts. This is a Luxury We can no Longer Afford. When LAFD was Flush with Cash, Spending was Out of Control. Personnel Expenses make up 86% of District Budget. We are No Longer Flush with Cash. We can No Longer Pay in the Top 90%. We can No Longer Devote 86% of the Budget to Personnel Costs.

Committee Recommendations

Adopt the Budget We Have Provided. Our 1st Alternative Recommendation. –Declare a Fiscal Urgency as Prescribed in Florida Statues. Our 2 nd Alternative Recommendation. –Privatize Fire Fighting & Emergency Services.

Conclusion

Conclusion Eliminate 17 Fire Fighters Not 30. Eliminate 6 Administrators Not 11. That is 18 Saved Jobs.

Thank You Thank You Commissioners for Allowing us the Time and Access to do this Study. Thank Chief Adams and Financial Specialist Anita Kressel for their Assistance.

Finally Our committee is certain that these recommendations are not only fiscally sound, but are sound from an operational standpoint as well, and most importantly are in keeping with the mission and purpose of the Lehigh Acres Fire District. Respectfully submitted on July 14, 2009 by the Blue Ribbon Committee: Rick Anglickis Bruce Boyd Laurie Jerriey Jeff McMullen Mike Wesner Patti Wheaton