1. Houston Fire Department FY 2012 BUDGET WORKSHOP PRESENTATION June 7, 2011 Terry Garrison – Fire Chief Neil DePascal – Deputy Director Finance

2. 2 MISSION STATEMENT The Houston Fire Department is a professional organization, continually seeking opportunities to serve our community through: FIRE PREVENTION EMERGENCY OPERATIONS PATIENT CARE, and EXCELLENT CUSTOMER SERVICE

3. Strategic Goals FY 2012 Initiate department-wide “risk based” training curriculum Imbed organizational four- step accountability process Implement “all hazards response” deployment model Implement new hiring standards – EMT requirements Five Years (2012-2016) Enhance member’s health and safety Improve fire prevention and public safety awareness Improve emergency response operations Strengthen management and leadership skills Embrace diversity Ensure funding for operations and capital assets fulfill the needs of department personnel and our customers Strengthen and reinforce a positive public perception of the department Implement best business practices to increase organizational effectiveness, accountability, and communications 3

4. Houston Fire Department ORGANIZATION CHART 4

5. Emergency Operations Measured Performance 5 TargetFY 2010 FY 2011 (10 Months) Turn out time – average for all unit types 60 seconds68 seconds67 seconds First unit on scene – EMS incident8 minutes6:086:11 First unit on scene – Fire incident6 minutes5:36 First unit on location at a reported fire incident 6 minutes or less for 80% of incidents 72%66% First unit on location for an EMS incident 8 minutes or less for 80% of incidents 79% First ALS unit on location for an ALS incident 8 minutes or less for 80% of incidents 88%89% Unit Hour Utilization (All EMS Units) *33% - 42%36.6%36.9% * Ratio of # unit-hours spent delivering EMS divided by total # unit-hours that the system could possibly deliver.

6. Call Volumes/Incidents/Responses 6 FY 2010FY 2011 (Projected Actual) HFD Calls For Service (Fire/EMS) 367,106365,416 HFD Incidents 271,090271,119 EMS Incidents 226,686226,961 Fire Incidents 44,404 44,158 HFD Responses 547,238548,488 EMS Vehicles 352,538352,474 Fire Vehicles 194,700196,014

7. Gender and Race Percentages 7 MaleFemaleTotal Employees @ 4/30/11 Classified97.7% 2.3%3,821 Civilian41.6%58.4% 109 * WhiteBlackHispanicA/O Classified59.3%17.3%22.1%1.3% Civilian30.7%33.6%29.9%5.8% Houston MSA **48.7%17.0%28.8%5.5% * Excludes Fleet, IT, HR, and Cadets **Metropolitan Statistical Area (MSA) 2000 Census Data

8. Houston Fire Department Classified FTEs 8

9. Houston Fire Department Civilian FTEs 9 Note: Effective 7/1/11 HFD will transfer 73 civilians to FMD and layoff 17 civilians

10. Financial Highlights FY 2012 Budget 10

11. Revenue Comparison ($ In Millions) 11 FY 2011 Projected Actual FY 2012 Budget Ambulance Fees$ 24.8$ 27.4 HAS Fire Protection Services 16.6 17.1 Special Fire Permits 4.7 5.0 Standbys and FMA Inspections 2.0 Building Plan Checking – PWE (Special Fund Transfer) 0.0 2.5 False Alarm Penalties 0.8 1.0 Fire Fighting Services (Four Harris County MUDs) 0.6 Fire Alarm Permits 0.3 Other 0.9 0.6 Total Revenues$ 50.7$56.5

12. Expenditures Summary Comparison ($ In Millions) 12 FY 2011 Projected Actual FY 2012 Budget Δ Increase (Decrease) Personnel Services (1) $ 421.293.9%$ 390.193.0%($ 31.1) Supplies (2) 11.7 2.6% 9.4 2.3% ( 2.3) Other Services & Charges (3) 11.3 2.5% 19.8 4.7% 8.5 Debt Service 4.6 1.0% 0.0 0.0% ( 4.6) Total $ 448.8100.0%$ 419.3100.0%($ 29.5) (1) Personnel services decrease resulted from a classified pension rate decrease, a deferral of termination pay, lower health insurance premiums for classified retirees, and a lower civilian base pay from transfers, attrition, and lay-offs. (2) Supplies decrease resulted from the transfer of vehicle repair and maintenance to “Other Services & Charges”. (3) Other services and charges increase resulted from consolidation of FMD HR, Permit Center as services and charges for KRONOS, IT, GIS, Drainage, etc.

13. Budget Target Reconciliation 13 FY 2011 Projected Actual & Current Budget $ 448,812,230 Budget Reduction (3.39%) (15,202,750) Annual recalculation of classified pension requirement (13,729,279) Eliminate Internal Service Fund Transfer (4,623,999) 2% Classified Base Pay Increase – January 2011 1,963,103 Additional Cadet Classes (Three classes) 1,500,000 Other, Net 588,904 FY 2012 Budget Target $ 419,308,509

14. Budget Reduction Solutions ($ In Millions) 14 FY 2012In Millions Collective Bargaining: Termination Pay Deferral $ 8.0 Reduce Classified Overtime 2.4 Eliminate Residency Incentive Pay 0.3 Additional Incident Command Technicians (0.2) Total – Collective Bargaining Savings/Deferrals$ 10.5 Reduced Unemployment Claims 1.6 Civilian Personnel Reductions & Benefits 1.3 Restructure Tele-Health Nurse Program 0.9 Reduced Cadet Class Costs w/o Reducing # of Classes 0.8 Total Target Reduction Solutions$ 15.2

15. Impact of FY 2012 Budget Solutions 15 Budget Item EliminatedDescriptionImpact 1. Collective bargaining solutions: deferred termination pay, eliminate residency incentive, reduced OT, add ICTs Deferred termination pay. OT savings relate to changes to OEC shift hours and classified holiday premium pay. Eliminate residency incentive pay and offset with addition of 2 ICTs. Minimal impact to service delivery. Increased safety with additional ICTs. 2. Civilian base salary & fringe benefit reductions Eliminate 17 civilian positionsRedistribution of existing workload to remaining staff. 3. Tele-health nurse program Move funding from General Fund to POP funds Minimal impact on service delivery. Duties reassigned to telemetry staff. 4. New cadet classes Reduced cadet class costs while maintaining the number of originally scheduled classes (3). Projected graduation 90 new FF. Projected attrition 160 FF. Staffing shortfall closed but not eliminated. 5. City pension contribution to classified retirement plan Annual recalculation of classified pension requirement No impact to service level.

16. Personnel Services Components: – Classified - $380.1 million – Civilian - $9.3 million – Cadets - $0.7 million Includes: – Annualized 2% classified base salary increase effective 12/25/10. – Reduced classified pension contribution rate from 29.4% to 23.9% – Deferral of termination pay – Reduced classified OT related to premium holidays and OEC shift change – No fire fighter layoffs in FY 2012 – Civilian salary base pay reductions Consolidations with FMD, HR, Radio Shop (IT), Layoffs – Three cadet classes to begin in FY 2012 16

17. Supplies Approximately $9.393 million or 2.24% of total budget – Decreased approximately $2.3 million from FY 2011 – Reclassified “Vehicle Repair & Maintenance Supplies” to “Other Services & Charges” for FMD charges in FY 2012 Category includes: – Electrical hardware & parts (T-pass devices, EZ Comm devices) – Chemical gases/special fluids (medical oxygen, etc.) – Cleaning & sanitary supplies (station cleaning) – Drugs/medical & surgical supplies – Fuel – Uniform clothing (clothing vouchers) – Protective gear (bunker gear) – Breathing apparatus repair (air pack repair in-house) – Fire fighting equipment (hoses, nozzles, fittings, axes, etc.) 17

18. Other Services & Charges Approximately $19.839 million or 4.73% of total budget – Increased approximately $8.605 million from FY 2011 – Increase resulted from including charges from O/S departments (FMD, HR, IT, and use charges for KRONOS, Drainage, Permit Center Rent) Category includes: – Inter-departmental charges (FMD, HR, IT, etc.) – Telemetry services – Protective gear cleaning & repair – Education & training (paramedic CE, EMT cert/recertification) – EMS & life safety equipment maintenance (stretchers, air pack repairs) – Fire extinguisher maintenance/medical oxygen testing – Computer equipment/software maintenance 18

19. 19 WE ARE THE HOUSTON FIRE DEPARTMENT And We are PROUD To Serve YOU! THANK YOU FOR YOUR TIME … Courage Compassion Commitment