1. 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

2. 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
City must adopt a budget
State code Section
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…”

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

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

5. 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

6. 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

7. 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

8. 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

9. 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)

10. 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?

11. 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

12. 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

13. 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

14. 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

15. 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)

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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?

22. 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.)

23. 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)

24. 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

25. 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

26. 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

27. Thank You!
Mickey Shields
(515)