San Francisco Fire Department Joanne HayesWhite Chief of

San Francisco Fire Department Joanne Hayes-White Chief of Department Fire Commission February 15, 2006

City Financial Outlook n Mayor’s Office is projecting a $94 million budget shortfall for FY 2006 -07 – Reliance on one-time savings to balance budget in prior years – Improved revenue collections are requiring deposits into City rainy day fund, leading to lower revenues to support the annual budget § Deposits required if revenues rise more than five percent – 50% rainy day reserve fund – 25% capital and one-time expenditures – 25% discretionary expenditures (annual budget)

SFFD Budget Instructions n Reduce baseline budget by $364, 465 – Absorb half of the employee contribution to pension (3. 75% of non-uniform employee retirement cost) n Propose additional reductions worth 3% of the General Fund support – For the SFFD, this amount is $4, 183, 497 n Propose one-time expenditures of $4, 020, 305

SFFD Budget Overview Revenues FY 2006 FY 2007 % Change Difference Fire Department Revenue 64, 284, 877 59, 651, 517 (4, 633, 360) General Fund Support 141, 466, 160 150, 857, 062 9, 390, 902 7% Support from Other City Depts 18, 619, 836 20, 980, 789 2, 360, 953 13% Total 224, 370, 873 231, 489, 368 7, 118, 495 3% Expenses -7% Operating Budget 199, 904, 349 210, 663, 350 10, 759, 001 5% AWSS Position Expense 1, 528, 422 1, 613, 300 84, 878 6% UASI Position Expense - 383, 297 Capital and Equipment 4, 298, 266 Gift appropriation 20, 000 Airport 13, 110, 804 Fireboat 383, 297 (20, 000) -100% 14, 095, 122 984, 318 8% 2, 309, 032 2, 335, 481 26, 449 1% Treasure Island 3, 200, 000 4, 550, 186 1, 350, 186 42% Total 224, 370, 873 233, 640, 736 9, 269, 863 4%

SFFD FY 07 Projected Revenues Division Description State Sales Tax Allocation Prevention All Revenues Prevention Overtime Recovery Support Serv Rental Income Training Treasure Island Rental EMS Patient Net Revenue EMS Misc Revenue Admin Building sale Gifts and Bequests UASI FY 05 Homeland Grant 191, 3 223, 3 31, 9 191, 3 23 04 81 23 - 45, 0 44, 7 ( 45, 0 00 38 262) 00 19, 334, 18, 071, (1, 2 257 - 994 263) 12, 0 14, 7 2, 7 14, 0 00 24 24 00 00 3, 650, (3, 6 000 - - 000) 20, 0 ( 00 00 - - 00) 383, 2 ( 97 97 - - 297) 64, 284, 877 Total Budget Projection Proposed FY 06 Variance FY 07 Incr/Decr 35, 000, 35, 000 000 - 5, 149, 5, 740, 591, 4 5, 729, 000 490 90 200 500, 0 762, 0 262, 0 600, 0 00 98 98 00 000 65, 172, 908 888, 0 59, 651, 31 517 (4, 6 360)

SFFD Revenues FY 07 n Fire Prevention – Fees remain at FY 06 rates n EMS Services – Fees will be adjusted by medical COLA, which is allowed in our current legislation – Medicare reimbursement rates are decreasing next year, leading to a reduction in anticipated revenue ($1. 26 million)

SFFD Projected Expenses Operating Budget FY 07 FY 2006 FY 2007 Change fr Obj Description Budget FY 2006 1 Salaries 13 Fringe 21 Non Personal Services 40 154, 557, 5 18 26, 896, 3 51 164, 116, 2 35 28, 851, 8 40 % % of Change Budget 9, 558, 71 7 6% 78% 1, 955, 48 9 7% 14% Materials and Supplies 1, 136, 84 3 3, 596, 95 5 887, 9 (248, 91 31 2) -22% 3, 613, 9 17, 00 55 0 0% 60 Equipment 2, 659, 58 4 2, 619, 5 44 81 Services of Other Depts 15, 450, 2 56 15, 257, 3 29 (192, 92 7) -1% 7% 86 Expense Recovery (3, 030, 75 8) (3, 266, 5 88) (235, 83 0) 8% -2% 87 Capital Recovery (1, 362, 40 0) (1, 416, 8 96) (54, 49 6) 4% -1% 199, 904, 3 49 Total 210, 663, 3 50 (40, 04 0) -2% 10, 759, 00 1 5% 0% 2% 1% 100%

Operating Budget FY 07 Staff proposes a small number of position reclassifications in Administration, Prevention, Support Services and AWSS to improve operations n Staff has reduced expenditures when possible and reallocated funding for shortfalls related to rising energy costs n SFFD has been able to reduce some work orders to other departments, including Workers Compensation n Funding for promotional testing will need to be negotiated because it was removed from the baseline budget in FY 06. n

FY 07 SFFD Budget Balancing n Proposed revenue adjustments – Prevention revenue § Annualization of last year’s revenue increase projected at $600, 000, changing the base to $2. 7 million. SFFD estimating yearly revenue at $2. 4 million, a difference of $300, 000. – EMS Revenue § Annualization of last year’s revenue increase added at 820, 000 to base revenues, changing the base to $20, 154, 257. SFFD estimates that revenue will actually decrease $1. 26 million, a difference of $2, 082, 263. – Total Revenue adjustments = $2, 382, 263

FY 07 SFFD Budget Balancing n FY 07 Budget Proposed Amount over target n Proposed revenue adj n n $233, 640, 736 $ 2, 151, 368 $ 2, 382, 263 Realizing that discussions need to continue with the Mayor’s Office, the Chief is asking the Fire Commission to approve the budget as presented, allowing the Chief to make adjustments of no more than 5 percent of the total proposed budget amount to meet the submittal requirements of the Mayor’s Office. This policy is consistent with current practice in other City departments.

FY 07 SFFD Implementing Prop F n The Mayor’s Office has asked the SFFD not to adjust its budget submittal to include the costs of implementing Prop F n The Mayor’s Office is currently estimating the implementation cost to be $7 million n The SFFD is analyzing the projected cost of Prop F, noting that the EMS reconfiguration will affect the figures

One Time Expenditures n Equipment Target from the Mayor’s Office is $4, 020, 305 n SFFD proposes the following: – $200, 000 in IT equipment and software – $450, 000 in health and fitness equipment for fire facilities – $100, 000 medical equipment for physician’s office – $3, 270, 305 for vehicle replacements

3% Budget Contingency The Mayors Office has asked for proposals for additional reductions worth 3% of the General Fund support n For the SFFD, this amount is $4, 183, 497 n 92% of the Department’s budget is labor expenses, and 88% of the operating budget is in fire suppression. Additional reductions in suppression may conflict with Proposition F. n SFFD will continue to work with the Mayor’s Office on alternatives. n

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