1. Financial Update 1

2. Fund Balance Projections 2015-16 Final Adopted Budget Your Role in Improving the Department’s Financial Condition Questions/Answers 2

3. What is a Fund Balance? A fund balance is the difference between revenues and expenditures. Examples: Revenue: Property Taxes, Special Tax, Fee-for- Service Cities, Grants, Prevention Fees, Assistance by Hire, etc. Expenditures: Salaries & Employee Benefits, Services & Supplies, Capital Assets, etc. 3

4. Your Role Reducing Risk Buying Only What You Need Revenue Opportunities (e.g., Grants, Fees) Saving on Utilities Efficiency Efforts - Being Engaged with New Technology (e.g., ePCR) 4

5. Fund Balance & Reserves 5 The Department will actually need to move $50M± from reserves to balance the full cost of the 2016-17 Budget, but because of projected savings, the Department is estimating only $3.4 million of the $50M will be spent. At the end of 2016-17, the difference will either roll over as fund balance into 2017-18 or be transferred back to reserves. 2014-152015-16 2016-17 ActualBudgetProjection Revenue$982.0$1,030.1$1,025.0$1,053.6 Beginning Fund Balance48.882.8 0.0 Total Revenue$1,030.8$1,112.9$1,107.8$1,053.6 Less Expenditures985.21,067.21,067.91,057.0 Subtotal45.645.739.9-3.4 Use of Reserves37.2-45.7-39.93.4 Fund Balance$82.8$0.0 $ in Millions * *

6. Revenues: 2015-16 Final Adopted Budget 6

7. Revenue Property Tax Prop E - Special Tax Fee For Service Cities Other Revenue (Grants, Fees, Assistance by Hire, etc.) One-Time (Fund Balance & Use of Designations) 7

8. Expenditures: 2015-16 Final Adopted Budget 8

9. Salary & Employee Benefits Salary and Bonuses Industrial Accidents Overtime Health and Dental Insurance Life Insurance Retirement 401k and 457 (Horizons) Workers’ Compensation 9

10. Other Expenditures Services & Supplies Office supplies Travel Safety equipment Legal Fees Capital Assets – Equipment costing $5,000 or more Vehicles Apparatus 10

11. Other Expenditures Auto Settlements General Settlements Medical Malpractice Settlements Transfers to Special Funds Helicopter ACO Fund 11

12. Unfunded Items The following items total $598.8 million (1) : LA-RICS LMR (Land Mobile Radios) – $110.0 million (2) Radio Replacement – $72.0 million CAD Replacement – $35.0 million (3) LA-RICS Network Infrastructure – $2.1 million New Console/LA-RICS Transition – $2.0 million Helicopter Replacement – $122.3 million Replacement of 10 Fire Stations – $91.0 million Privacy and Access Facility Improvements – $70.0 million (3) National Pollution Discharge Elimination System – $41.0 million New Stations/Facilities – $18.8 million Facility Rehab – $18.0 million Barton Heliport Renovation Project – $16.6 million 12 (1) Does not include $191.9M for new headquarters facility. (2) LA-RICS cost should be shared with Sheriff, so the $110M may be $55M. (3) These items are partially funded in the Fire District’s forecast.

13. Q&A Any questions? 13