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North Jefferson County Ambulance District
High Ridge, Missouri
2014-2015 Annual Budget
October 21, 2014
Table of Contents
PAGE
INTRODUCTION AND PROFILE
Cover Page ..................................................................................................................................... 1
List of Principal Officials .................................................................................................................. 2
Mission and Values Statement…………………………………………………………………………… 3
Organizational Chart........................................................................................................................ 4
Geographical Map 5
Fast Facts about the District ............................................................................................................ 6
District Statistics .............................................................................................................................. 7
BUDGET PROCESS AND POLICIES
Budget Preparation Process ........................................................................................................... 8
Budget and Financial Policies ......................................................................................................... 20
BUDGET SUMMARY
Budgeted Revenues, Expenditures and Changes in Fund Balance – All Funds ............................ 27
PENSION FUND
Budgeted Revenues, Expenditures and Changes in Fund Balance ............................................... 32
Director Position Serving Since Current Term ExpiresCarla Hloben Chairperson April 2011 April 2017Kathy Hennessey Vice-Chairperson April 2007 April 2015Julia Vessells Treasurer April 2010 April 2015Rebecca Cowley Director September 2012 April 2016Diana Davis Director April 2010 April 2016Tasha Schriewer Director January 2012 April 2017
Employee Position Serving Since Position Start DateJamie Guinn Chief August 1996 November 2011Jennifer Wilson Business Manager October 1995 October 1995Norman Corley Training Officer June 1990 2007*Laura Gunning Medical Supply Officer October 1990 January 2010William O'Hara Fleet Officer October 2005 September 2012
List of Principal Officials as of September 9, 2014
Elected Officials
Distrct Administrative Staff/Officers
102.0 Mission & Values Statements The mission of NJCAD is to provide outstanding emergency medical services and patient transportation services. We provide these services in a professional manner while maintaining the dignity of those we serve. Our staff continuously strives to learn, improve and grow in enhancing the delivery of emergency medical services to those we serve. NJCAD adheres to the following values: Commitment to Service We treat persons with illness and injury in our community with care and compassion, utilizing effective principles and practices of patient care, and we strive for excellence through ongoing evaluation and improvement. Respect We recognize the dignity of others and communicate with others in a respectful manner. Integrity We serve with honesty, loyalty and dedication. Accountability We are responsible for our actions, both positive and negative. Teamwork We practice teamwork through communication and cooperation to achieve common goals. Fair Treatment We do not discriminate against patients or personnel on the basis of race, color, national origin, ancestry, religion, sex, age, disability, political belief, military service, marital status, sexual orientation or any other legally protected characteristic.
Organizational Structure and Authority
Board of Directors
Business
Business Manager
Claims Rep
Chief Operations
Assistant Chief
A Crew Shift Officer(s)
A Crew FT Duty Crew
PT Crew
B Crew Shift Officer(s)
B Crew FT Duty Crew
PT Crew
C Crew Shift Officer(s)
C Crew FT Duty Crew
PT Crew
W
PP
MM
21
30
Byrnes Mill
Parkdale
Scotsdale
Village of Peaceful VillageNorth Jefferson
Big River
Rock Township
Eureka Fire/Ambulance
Sugar Cree
k
Big R
iver
Antir
e Cree
k
Saline Creek
Bear
CreekHeads Creek
Rock Creek
Bour
ne C
reek
Dulin Creek
Romaine Creek
Williams C
reek
Kneff Road Tributary
Unnamed Tributary to Big River
Meram
ec R
iver
Saline Creek
Rock
Creek
Rock
Cree
k
Rock
Creek
Heads Creek
Dulin
Cree
k
Williams C
reekState
Route 30
State Road MM
State Route 2
1 North
State
Rou
te 21
Sou
th
State Road W
State Road PP
Gravois Road
Hunning Rd
Old State Rt. 21
Antir
e Rd
Saline Rd
Hunning Rd
Old S
ugar
Cre
ek R
d
East Swaller Rd
Schumacher Rd
Duda Rd
Twin River Rd
Dillon Rd
Caro
l Par
k Rd
Rock
Cre
ek Va
lley R
d
Gravois (Schumacher) Rd
Dry Fork (East) Rd
Lions Den Rd
Hillsboro House Springs Rd
Blecha Rd
East
Romain
e Cree
k
Coil Rd
Miller (off Hwy MM ) Rd
Brennan Rd
Burgan Grove Gravois(N
orthwest School) R
d
John Swaller Rd
Meadow Drive
Biltmore Dr
Little
Bre
nnan
Rd
Bear Creek Rd
Northwest Blvd
Diehl Rd
Delor
es D
r
Golda
Ln
Singing Hills Rd
Hawkins Rd
Valley
Dr
Franks Road
Byrn
es M
ill Ro
ad
Lower Byrnes Mill Road
Gravois RdRosewood Lane
Fawn Woods Drive
Scotsdale Blvd
Vogt Road
L Street
Wild
Valle
y Driv
e
Lewi
s Roa
d
Fairway Drive
Glik Road
Kley Lane
Werner Road
Butler Valley
Gail Drive
Hickory Lane
Chot
t Driv
e
River Bend Drive
Ravinia
Way
Lang Valley Drive
Ulrich Lane
Main
Drive
Glen Haven Road
Della Drive
JC Lane
Birch Drive
Terrace Drive
Country Road
Country Club Drive
Waybridge LaneWallach Drive
Ottomeyer Road
Irish S
ea Driv
e
Brosh Farm Rd
Green Valley Drive
Parkedge Drive
Glendale Road
E Lake Road
Rim Ro
ad
Kley Road
Cente
r Driv
e
Bent Oak Drive
Wilbert Road
Hill Drive
Wilderne
ss Lan
e
River Bend Acres Rd
Lally Drive
Music Mountain
Emerson Road
Echo Lake Circle
Gem Drive
Katrina D
rive
Mano
r Cre
st Dr
ive
Whitby Lane
Dellwood Lane
Donn
a Driv
e
Diehl Lane
Suns
wept
Lane
Kovarik Lane
Inland Drive
Anise Lane
Blue Springs R
oad
Lions Den Spur
Hilge
rt Driv
e
Patti Lane
West
Drive
Ridge Drive
Crest Drive
Anna Lee Drive
Lisand Drive
Saline Lane
Rose Park Road
Davis Drive
Oakc
rest
Drive
Belmont Drive
Olde Mill DriveWindswept Lane
Maple Drive
Rainbow Drive
Pogu
e Driv
eGreenway Drive
Terry Drive
Darren Drive
Ron-El Drive
Timberline Drive
Saline Point
Brinridge Drive
Laverne Drive
Oak Tre
e Lane
Will Drive
Pike T
rail
Tiffiny Lane
Trails
Drive
Hopp
e Hill
Drive
Ozark
Lane
Schumacher Road
W Fork Drive
Ron Driv
eVince Ann Lane
Harter Farm Road
Traci
Drive
Arlow
Driv
e
Ginger Root Drive
Ottomeyer Lane
Spavale Drive
Rainbow Trail
Dogwood Lane
Fores
t Lan
e
Fisher Way
Duda
Rd
Erb Ind Drive
Parkway Drive
Patrick Drive
Cold Springs Ridge
Walnu
t View
Roads End Acres
Thunder Road
River Road
King T
erra D
rive
Monti
cello
Cou
rt
Dana Drive
Sprin
gview
Drive
Wildw
ind La
ne
Elijah
Driv
e
Spring Valley Road
Hendricks Road
Caro
l Lan
e
Stacey Lane
Hickory Ridge Lane
Ridge Road
Gloucester Road
Sunset Drive
Windy Hill Lane
Hawthorn Drive
Cedar Glade Road
Linnus Drive
Henry Drive
Vista View
Drive
Golden Court
Wren Drive
Frontier Trail
Straathaven Drive
Kirchoff Lane
Carol Street
Hunte
r Lan
e
Mill Lake Court
Came
lot La
ne
Cherry Hill Drive
Quint
ana D
rive
Fisher Road
Pitcher D
rive
Memory Lane
Patricia Place
Land
Rus
h Driv
e
Pioneer Drive
Ruth
Driv
e
Eldon
Driv
e
Lois Lane
Cardinal Lane
Elizabeth
Drive
Camelot Court
Debb
ie Dr
ive
Rio Drive
Bush Road
Sunr
ise D
rive
Lost Road
Weil Lane
Islamora
da Driv
e
Robin Drive
Meadow Lane
Cotton Lane
Cambridge Lane
Al's Lane
Twin Trails Court
Pono
toc L
ane
High Trace
Toot
er La
ne
Treetop Lane
Mikel Lane
Roberta Drive
Verdant Drive
Phil's
Driv
e
Fawn Lane
Ridge
Point
Dr
Wildwoo
d Lan
eBl
ack O
ak Te
rrace
Lake Road
Dale Drive
Laur
el Dr
ive
Sassafras Lane
Park Drive
Trails Court
Pine Road
Diana Drive
Estates Drive
Stonehill Manor
Sycamore Lane
Nutmeg Lane
Brosh Lane
Virginia Drive
Velma Drive
Kruger Lane
Matts Manor
Hope Lane
Rosemary
Lane
Brighton Court
Keith Drive
Doris
Driv
e
Demare
e Cou
rt
S Golden Circle
Newcas
tle Court
Werner Drive
Cedar DriveJanet Lane
Ruby
Driv
e
Oakwood Road
Spur Drive
Belle Lane
Orchard Drive
Vasel Drive
Calico Lane
Miller Drive
Holly Place
Westwood Drive
Glas
s Lan
e
Mockingbird Drive
Jewel Court
Hy Drive
Stieren Court
Mae Court
Leona Lane
Maxwell Lane
Tyrer Lane
Alley Drive
Country
Club Drive
North Jefferson Ambulance District
®Legend
Rivers, Creeks, Streams
Interstate
State HighwaysCounty RoadsFestus Special RoadsCity Streets
US Highways
Private Streets
§̈¦
21
£¤67
55 MunicipalitiesBig RiverEureka Fire/AmbulanceJoachim-PlattinMeramecNorth JeffersonRock TownshipValle
0 0.5 10.25Miles
1 inch = 2,000 feet1:24,000Scale:
Map Created By: Planning DivisionDate of Map Creation: 11 September 2014Data Sources: Jefferson County Assessor's Office, ESRIJefferson County Planning Division, Jefferson County Public Works Department
District Statistics
The growth of the District is best depicted by the following statistics:
Year Number of Calls Number of Bases Number of Units 1976 * 1 *
2000 1890 * *
2005 2043 1 *
2010 2223 1 4
2013 2349 1 4
Fast Facts about the District
Area Served: 32 Square Miles
Area Make-Up: Rural, light industrial and agricultural
Population Served: 40,000 (2012)
Governing Body: Elected Board of Directors (6)
Calls per Year: 2349 (2013)
Type of Service: Emergency
Ambulances: 4 Advanced Life Support
Facilities: 1 Headquarters
EMS Dispatching: Jefferson County 911 Dispatch
Service Area: High Ridge and parts of Byrnes Mill, Eureka, Fenton and House Springs
Budget Preparation Process Understanding the Budget Process:
This guide is a resource for the governing body and officials who are responsible for preparing, developing, and monitoring the annual budget. The information contained in this guide will be helpful to chief executive officers, budget officers, business officials, finance officers, department heads, board members, and the public. This guide provides the groundwork for the development, preparation, and monitoring of the annual budget.
An annual budget, sometimes referred to as the operating budget, is the document that details the financial plan of the district for a fiscal year. The annual budget is perhaps an entity’s most vital document and should be developed using all of the most current and accurate information available. The budget is not just a financial plan; it also has legal implications, which are delineated in the “Implementing the Budget” section of this guide. Furthermore, the budget process does not end with the adoption of the budget. Instead, the budget is a document that must be monitored and amended from time to time, as needed.
The following is an overview of the information contained in this guide:
• Who is Responsible? • Information Used to Prepare the Budget • Budget Preparation Process • Putting the Tentative Budget Together • Implementing the Budget • Monitoring the Budget
In addition, the appendices to this guide include the following important information: designation of the budget officer (Appendix A), budget calendars (Appendix B), and definition of terms (Appendix C).
Who is Responsible?
Budget development is not a “one-person show.” Instead, it is a team effort with the budget officer
leading the charge. While the budget officer is responsible for preparing the final budget document, the budget officer needs to work closely with the planning team, officers and the designated board officer to develop a realistic blueprint for the upcoming fiscal year. The budget officer generally is responsible for the preparation of the tentative/proposed budget and presenting it to the governing board. The governing board generally has the authority and responsibility to adopt realistic, structurally balanced budgets and to monitor the budget continually. The designated board officer is responsible for providing accurate financial information to the budget officer. Officers are responsible for providing the budget officer with accurate financial information relevant to the operation of their department. Employees are responsible for providing input to the officers about the operation of their individual departments.
In our district, the Chief Financial Officer (CFO) is typically designated by the board as the budget officer and is responsible for developing the annual budget. The CFO is generally assisted by the planning team and board official in preparing the budget. With the board of directors approving the budget, therefore, district residents are ultimately responsible for approving district budgets.
Information Used to Prepare the Budget
A good annual budget begins with sound estimates and well-supported budgetary assumptions. Spending levels and financial resources must be accurately gauged at budget preparation time to ensure that planned services are properly funded. To develop sound estimates, budget officers should avail themselves of as much pertinent data as possible. While valuable information is available from a number of sources, the budget officer should also work closely with officers to develop a realistic annual budget.
Sources of information used in preparing the budget:
• Modified budgets for prior and current year • Prior year’s financial reports • Current year revenue and expenditure information to date • Debt service requirements, contracts, and other commitments • Current economic conditions affecting revenue generation • Cash flow reports and revenue projections • State and federal aid information • Collective bargaining agreements • Service contracts with other governments • Multiyear capital plans • New and pending legislation • Rate of inflation • Current interest rates • Tax and debt limit information – if applicable • Strategic plans • Input from labor, taxpayers and other interested groups
Budget Preparation Process
These are the steps that are typical to the budget processes.
1. The budget preparation process starts with the setting forth of the budget calendar.
2. The budget officer distributes budget forms and instructions to all the officers of the district. The forms should include all revenue and expenditure account codes used in the previous two years along with the actual and budgeted estimates for the previous fiscal year and year-to-date totals for the current year. The form should also contain space for the manager to explain or justify new types of proposed revenues or expenditures or to further explain large increases or decreases in the amounts proposed for the following year.
3. Officers submit their estimates and discuss their requests with the budget officer.
4. The budget officer uses the information from the budget forms to prepare the tentative/proposed budget. This will generally involve assessing whether the total departmental estimates of appropriations are greater than the estimated financial resources and then developing a tentative/proposed budget that provides necessary appropriations within the limits of those resources. The budget officer should also ensure that the tentative/proposed budget meets all legal requirements, consulting with the district’s legal counsel as necessary.
5. The budget officer presents the tentative/proposed budget to the governing board for its consideration and approval. At this time, it may be necessary for the budget officer to provide backup documentation for some of the estimated appropriation and revenue figures. Alterations and revisions may be necessary before approving the budget. The budget that is finally approved needs to be balanced: the total financing sources from estimated revenues, appropriated fund balance, and appropriated reserves equaling the amount of appropriations for expenditures.
6. The district publishes a notice, and a public hearing on the budget is held. Again, alterations and revisions to the budget may be necessary after completion of the public hearing.
7. The governing board adopts the final budget by majority vote. If the governing board fails to adopt a final budget by the deadline date set forth in the County Law, respectively, the preliminary budget or the tentative budget, with such changes, alterations, and revisions as may have been made by the board will constitute the final budget for the following fiscal year. If the board rejects the original budget, the district may present the original budget or a revised budget to the board a second time for approval. If the second vote is not approved or the board decides not to present the budget a second time, the district must operate under a “contingency budget.”
8. The final step of the budget preparation process is the calculation of the real & personal property tax levy.
Putting the Tentative Budget Together
Because the budget is such a key instrument in the day-to-day operations of the district, it is essential that it is properly constructed. A significant error contained within the document could have severe consequences. For example, overestimating revenues and/ or underestimating expenditures could result in shortfalls that threaten the delivery of essential services. Underestimating revenues and/or overestimating expenditures could result in the collection of more real property taxes than are necessary. Using non-recurring, one-shot revenues to support recurring expenditures may appear to offer a solution to establish a balanced budget; however, the strategy is a short-term solution and only temporarily defers the need to address structural budget imbalances. Therefore, it is important to prepare the budget using realistic estimates based on the most current and accurate information available and not to rely on one-shot revenues to support recurring expenditures.
Expenditure Estimates
After the various departments have submitted an estimate of their costs of operations for the next fiscal year, the budget officer should review them to ensure they are complete, reasonable, and mathematically accurate. If a program is being offered for the first time or a major change to an existing program is anticipated, the manager should provide sufficient documentation for the governing board to consider when approving or disapproving the change. Based upon the governing board’s decision, the board may need to approve the imposition of a new fee or the addition/ deletion of services.
In addition to the department estimates and requests, there are certain items that can affect an entire fund and may or may not have been specifically addressed by a department.
• Debt Service – Debt service schedules should be reviewed to determine the principal and interest expenditures for the upcoming year. In addition, recent governing board resolutions regarding current or pending debt issuances should also be reviewed, so that all debt service costs can be incorporated in the budget.
• Employee Salaries – The payroll or human resources department should provide a listing of current employees with their salary estimates. When reviewing employee listings, the budget officer should verify that all employees and positions are included. Salary schedules and collective bargaining agreements will generally determine the rates of pay for the upcoming year. Similarly, the employer’s share of Social Security costs can be estimated by applying the applicable rate to the anticipated personal service costs for next year..
• Employee Benefits – In order to estimate the cost of employee benefits, the budget officer must first review the various collective bargaining agreements and personnel policies adopted by the governing board to determine what employee benefits must be funded. Health care benefit costs can be estimated by reviewing current policies and programs and applying projected rates to the probable make-up of next year’s workforce. Retirement benefit costs can be estimated by using projected rates for employer contributions received from the Retirement Program. Workers’ Compensation costs can best be projected by reviewing current policies and past history.
Other expenditures that districts should take into consideration include fuel and energy costs and contractual payments due to employees in the upcoming year for compensated absences, retirement, or separation from service.
Appropriations for Contingencies
Because budgeting is not an exact science, most local governments are authorized to include an amount in their budget for unforeseen circumstances. This amount is referred to as the contingency account and is subject to limitations established by various laws. No direct expenditure can be charged to this account. Instead, the balance is transferred to other appropriation accounts that are at risk of becoming overdrawn as needed. A breakdown of contingency limits by type of local government is included in Appendix C.
Revenue Estimates
The budget officer and the designated board officer, in consultation with appropriate personnel, will have the task of forecasting many of the revenue estimates. For this reason, knowledge of the local economy, State and federal aid programs, contracts with other governments, and any other information on revenue generation is essential. With current and accurate information from these key sources and an understanding of the nature of the district’s revenues, the budget officer can develop realistic estimates. In addition, officers should provide estimates of revenue derived from the activities of their departments to help in the budget process.
The process of estimating revenues usually begins with a historical analysis. Looking at revenues over time often is a fair indicator of future results, a three- to five-year period is usually sufficient. The district should be able to provide accurate historical data to start the estimating process. In addition, accurate year-to-date numbers with estimates to year end are necessary for the process.
Non-Property Taxes Non-property taxes, such as sales and use taxes, utility gross receipts taxes, mortgage recording taxes, and various other relatively volatile taxes are difficult to predict. Although rates rarely change, the revenue base can be highly erratic. Many of these items are based on consumer usage and therefore dependent on the state of the local, regional, and national economies. Past experience can provide some guidance, but current and future economic trends are better to use in estimating these revenues.
Ambulance User Fee Income Ambulance user fee income generally involves fees charged to patients for various services provided and should be included in the revenue estimates received from the billing supervisor. These revenues can be significant, although user fee revenue is based on consumer demand for the applicable service and the district’s ability to supply it. Consumer demand may fluctuate based on current economic conditions as well as the quality of the services provided. Past trends can provide useful data and the billing supervisor predictions are also helpful. Changes in fee schedules should also be considered, particularly if the services are intended to be self-sustaining. Any changes in local conditions may also impact these revenue items.
Use of Money and Property This category includes interest earnings on investments and income from rental property or equipment. Estimated interest earnings should be based on current yield rates and expected investment amounts. Estimated rental income should be based on rental agreements.
Sale of Property and Compensation for Loss These revenues are highly volatile. Amounts received can range from insignificant to substantial. The good news is that they are relatively controllable by the district. Minor sales of unneeded
supplies and equipment are generally not significant, while sales of unneeded land or buildings can generate significant revenues. The selling price and the timing of the sale can often be negotiated. The budget officer should confirm sales information. Generally, insurance recoveries for damage to property are not included in the initial budgets because the losses are usually sustained from unexpected events. For the district, the proceeds may be appropriated to repair or replace the loss when the money is received. Because of the sporadic nature of this class of revenues, care should be taken when budgeting for them. These one-time revenues, particularly larger amounts generated from the sale of real property, should not be used to finance day-to-day operations. Instead, they should be restricted to one-time expenditures, such as capital acquisitions or contributions to debt reduction. In some cases, the amounts may be required to be restricted for debt service or other specified uses.
Miscellaneous Miscellaneous revenues include refunds of prior year expenditures, gifts and donations, and certain other revenues not classified elsewhere. Generally, such revenues are insignificant and vary from year to year. Reviewing and identifying amounts realized in prior years can also be helpful.
Interfund Transfers Interfund transfers represent contributions of resources from one fund to another, generally for expenditure in the receiving fund. These operating transfers, although included in estimated revenues, are considered a financing source. Transfers should be based on management’s decisions and be within applicable legal authority. They should be easily quantified for budgetary purposes. In total, transfers in should equal transfers out. When budgeting for these revenues, keep in mind that taxpayer equity and fairness should be maintained when applicable, and that not making approved transfers can have negative financial consequences for the intended receiving fund.
When estimating revenue, conservatism is the key. It is far better to underestimate a particular revenue by a small amount, than to plan on a revenue that does not materialize.
Estimates of Available Fund Balance
Another important financing source for the annual budget is available fund balance. The key to using this as a funding source is the proper estimation of its value. At budget time, the challenge for the district budget officer is to calculate year-end fund balance months in advance.
The calculation of year-end fund balance is as follows: start with fund balance at the beginning of the year, add revenues to date, and subtract expenditures to date. This calculated amount represents the fund balance as of the last completed month. To this amount, add projected revenues and subtract projected expenditures for the remainder of the fiscal year. The final figure is a reasonable estimate of fund balance available at year-end. The same procedure should also be used to determine the amount of any reserve balances available at year-end for each applicable fund.
Real & Personal Property Taxes
The final piece of the budget process, the piece often generating the most interest to governing board members and taxpayers alike, is the determination of the amount of real & personal property taxes that will be necessary to balance the budget. A balanced budget is intended to ensure that the district does not spend beyond its means. At this point, a preparation of a preliminary tax rate summary (Pro Forma) is completed and submitted to the County Clerk.
The amount to be raised by taxation is called the tax levy. In general, the amount of the tax levy is raised by computing a tax rate and then applying that tax rate to the assessed value of real property subject to taxation. The tax rate is computed by dividing the amount of the tax levy by the total taxable assessed value of the real and personal property, and is usually expressed as an amount per thousand dollars of assessed value. The taxable assessed value of most types of real property is determined by the Jefferson County Assessor. The basic formula for the tax levy is as follows:
General Tax Levy (2013) is assessed at a rate of .04947 per $100 of assessed valuation (total proposed tax would be $1,630,309.08). This will be for the 2013-2014 fiscal year General Revenue Budget.
Pension Tax Levy (2013) is assessed at a rate of .00500 per $100 of assessed valuation (total proposed tax would be $164,777.55. This will be for the 2013-2014 fiscal year Pension Budget.
Implementing the Budget
Once the budget has been adopted there must be a systematic accounting process in place to determine that sufficient revenues are realized and money is available for expenditure for each purpose enumerated in the budget. Without properly accounting for revenues and expenditures, officials cannot be reasonably assured that the budget that they approved is, in fact, being complied with.
Listed below are recommended accounting procedures and, in some cases, legal requirements for implementing the budget. These may not be applicable to all local entities:
• A separate account should be kept for each appropriation showing the amount appropriated, the amount encumbered, the amounts expended, and the unencumbered balance.
• A separate account should be kept for each revenue item showing the amount estimated to be earned and recognized as revenue, the actual amounts recorded to date, and the balance expected to be realized.
• As a rule, no expenditure may be made, or any liability incurred, unless an amount has been appropriated for the particular purpose and is available or is authorized to be borrowed pursuant to the Local Finance Law.
• Whenever it appears that resources will not be sufficient to meet appropriations, the budget officer should notify the governing board stating the probable amount of the deficiency. The budget officer should provide recommendations regarding possible actions to be taken.
• If, during the fiscal year, the governing board determines that sufficient revenues will not be generated to finance the total appropriations provided for in the original budget, the governing board generally may reduce appropriations to prevent making expenditures in excess of money available. An appropriation may not be reduced below the minimum amount required by law, nor generally be reduced by more than the unexpended balance less outstanding and unpaid claims chargeable to it.
• As a general rule, the governing board may make supplemental appropriations. These may be provided by transfer from the unexpended balance of an appropriation, from the appropriation for contingencies within a fund, or by borrowing pursuant to the Local Finance Law. For towns, villages and counties, the unappropriated, unreserved fund balance may be utilized for this purpose only to the extent that the total of all revenues of a fund, recognized or reasonably expected to be recognized in the current fiscal year, together with unappropriated, unreserved fund balance, exceeds the total of all revenues of the fund and appropriated fund balance as estimated in the budgets.
• Under certain statutes, the governing board may appropriate certain revenues that were not included in the original budget at any time for the applicable objects or purposes. These revenues include grants received from the State and federal governments, gifts that are required to be expended for particular objects or purposes, and certain insurance proceeds.
Monitoring the Budget
After the budget has been approved, it is generally the responsibility of the governing board, budget officer, and department heads to see that services are delivered within the limits provided in the budget. They should closely monitor the progress of actual revenues and expenditures throughout the year, and identify any variances that might cause the district to end the year with a significant surplus or deficit.
The preparation of budget reports facilitates the monitoring of the adopted and amended budget. A budget report shows the original budget, any authorized amendments, actual transactions to date (i.e., revenues, expenditures, and encumbrances listed by account code) and the differences between the amended budget and actual transactions (shown as variances). Budget reports should be prepared and reviewed as of the end of each month during the fiscal year. The reports can also be enhanced with information that compares the amended budget to a projected estimate of actual revenues and expenditures through the end of the year. These projections can be prepared using historical data from prior years, quarterly estimates contained in the original budget, input from department heads, or any other relevant and reliable information.
The budget officer can also prepare a narrative explaining the numbers in the budget report and recommending corrective actions if shortfalls are indicated. By using these reports, the board of directors can identify financial trouble spots in advance. Such reports also help them to assess the performance of departments and activities. To help monitor the progress of individual departments, it might also be desirable to develop quarterly expenditure plans for major departments based on the department’s budget and historical patterns.
The timely detection of projected budget shortfalls allows actions to be taken early to address the shortfall, when only relatively small adjustments may be required. Waiting until the close of year, after the situation has deteriorated significantly, can result in the need to take more drastic action with fewer options available. Timely detection can also lead to the taking of appropriate action in the succeeding year’s budget if the shortfall is seen to be an ongoing problem and not just a temporary situation.
The following actions (although not appropriate for all entities) should be considered if a problem arises:
• Transfer between appropriations, where appropriate • Use of contingency funds, where allowed • Appropriation of fund balance, when appropriate • Use of budget notes
Conclusion
A significant amount of time and effort is expended in preparing the annual budget. It is often a very busy and stressful time. Often, computer-generated information is used. Although technology is ever evolving, it is still prudent to double check the numbers that you are presenting. For example, sit and read the final document to see if it makes sense. Then, get an adding machine and manually add the columns and the rows—making sure that the final product is accurate, realistic and makes sense. The additional effort spent on preparing an accurate and realistic budget generally reduces the risk of having to make adjustments later in the year or in future years.
Appendix A – Budget Officer Designation
Appendix B – Budget Calendar
Appendix C – Terminology
Appendix A Missouri Revised Statutes Chapter 67 Political Subdivisions, Miscellaneous Powers Section 67.020 Budget officer, designation, duties--submission of budget.
67.020. 1. The budget shall be prepared under the direction of a budget officer. Except as otherwise provided by law, charter, or ordinance, the budget officer shall be designated by the governing body of the political subdivision. All officers and employees shall cooperate with and provide to the budget officer such information and such records as he shall require in developing the budget. The budget officer shall review all the expenditure requests and revenue estimates, after which he shall prepare the proposed budget as defined herein.
2. After the budget officer has prepared the proposed budget, he shall submit it, along with such supporting schedules, exhibits, and other explanatory material as may be necessary for the proper understanding of the financial needs and position of the political subdivision, to the governing body. He shall submit at the same time complete drafts of such orders, motions, resolutions, or ordinances as may be required to authorize the proposed expenditures and produce the revenues necessary to balance the proposed budget.
Appendix B – Budget Calendar
The budgeting process takes several months so the Budget Calendar summarizes the schedule of critical due dates. January 15 Conflict of Interest Resolution updated March 1 Distribution of Budget Calendar March 5 Financial status meeting with Budget
Committee to discuss budget goals March 12 Meeting to discuss and distribute
assignments with to Officers March 9 Contract negotiation meeting April 9 Assignments due from Officers April 16 Meeting of Budget Committee to
discuss and review specific budget needs
May 1 Financial disclosure reports due to Ethics Commission
May 7 Draft budget completed and distributed to Board of Directors
May 15 Budget Workshop with Board of Directors
June 15 Preliminary budget completed and distributed to the Board of Directors & Budget Committee
August 18 Set property tax levy (Due by September 1)
September 8 Proposed 2014-2015FY Budget presented to Board of Directors
September 12 Proposed 2014-2015FY Budget presented to public
September 15 Adoption of Proposed 2014-2015FY Budget at Board Meeting
October 20 Final Public Hearing and Adoption of Proposed 2014-2015FY Budget
Appendix C – Terminology
The following explanations are presented to aid in understanding the terminology generally used in governmental accounting, auditing, financial reporting and budgeting.
Term Definition Appropriations
An allocation or designation of money by the governing board to be spent on a particular type of item. Appropriations are often referred to as expenditure line items in the annual budget.
Appropriated Fund Balance The portion of fund balance estimated to be available that is designated to help finance operations of that fund for the subsequent year.
Appropriated Reserves The portion of amounts reserved for stated purposes estimated to be available and designated to finance specific, authorized budgetary appropriations.
Assessed Value The estimated value of property for tax purposes. Assessed value is approximately equal to market value, ideally within 10%.
Budget A plan of financial activity for a specified period of time indicating all planned revenues and expense for the period.
Budget Calendar The schedule of key events or dates which a government follows in preparation and adoption of the budget.
Estimated Revenues All sources of funds estimated to be earned and recognized as revenue during a fiscal year to finance appropriations contained in the annual budget.
Cash Basis of Accounting A basis of accounting in which transactions are recognized only when cash is increased or decreased.
Current Budget Year The budget year in which a local government is operating.
Ensuing Budget Year The next upcoming budget year that runs from November 1 to October 31. Also known as the “incoming” budget year.
Fiscal Body Local government council or board. The body with budget approval authority.
Fiscal Year One complete 12-month cycle of financial activity. For towns, most counties, and most cities, the fiscal year coincides with the calendar
year, January 1st to December 31st. For our District, the fiscal year begins November 1st and ends October 31st.
Fund A set of self-balancing accounts containing both revenues and expenses that are segregated for the purpose of carrying out a specific purpose or activity.
Fund Balance The excess of cash and investments attributed to a fund over that funds liabilities and obligations.
General Fund The fund used to account for all revenues and expenditures applicable to the general operations of the government that are not required to be accounted for in another fund.
Levy The amount of revenue generated by a tax rate. Also, the amount of tax charged by a government.
Reserve A reserve account where budget surpluses can be transferred from undedicated funds so the funds are held for future purposes.
Tentative/Proposed Budget The budget as prepared by the budget officer and initially presented to the governing board.
Unappropriated Unreserved Fund Balance A portion of fund balance that is not reserved or appropriated to finance operations of that fund in the subsequent year.
Budget and Financial Policies Introduction North Jefferson County Ambulance District functions under Missouri Revised Statutes, Chapter 190, as a political subdivision of the State of Missouri. The District provides basic and advanced life support emergency medical services as well as public education to the community.
The 2014-2015FY budget has been prepared after analyzing, evaluating, and justifying requests from all departments. The District maintains budgetary controls to ensure compliance with legal provisions embodied in the appropriated budget approved by the District’s Board of Directors. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is at the fund level. There is flexibility in the use of monies within various line items, so long as the total appropriated at the fund level is maintained. During the year, revenues and expenditures are closely monitored to ensure compliance with the adopted budget and state law. Monthly budget comparisons are distributed to management and the Board of Directors. Annually, an audit is performed by an independent certified public accountant. Fund Accounting The accounts of the District are organized on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance related legal and contractual provisions. The District has adopted a budget for the following major governmental funds: The General Fund – This is the District’s primary operating fund, which accounts for all the financial resources and the legally authorized activities of the District except those required to be accounted for in other specialized funds.
The Pension Fund- The District uses this fund to account for property taxes that are assessed specifically for the payment of employee retirement funds
Revenue Projections Property Taxes Approximately 57% of the District’s general fund revenue is comprised of property taxes. The District is subject to Missouri State Hancock Amendment. The amendment limits the rate of increase and the total amount of taxes on property which may be imposed in any year without voter approval. If the assessed valuation of property, excluding the value of new construction and improvements, increases by a larger percentage than the increase in the general price level from the previous year, the maximum authorized current levy must be reduced to yield the same gross revenue from existing property, adjusted for changes in the general price level, as could have been collected at the existing authorized levy on the prior assessed value. Conversely, if assessed
valuation decreases, then the property tax rate may increase (up to the maximum levy allowed by law) in order to yield the same gross revenue from existing property. State law also dictates that the assessor shall annually assess all real property in the following manner: new assessed values shall be determined in each odd-numbered year; those same assessed values shall apply in the following even-numbered year, except for new construction and property improvements which shall be valued as though they had been completed in the preceding odd-numbered year.
Year Total Real Total Personal Total Combined Aggregate
2007 242,903,764 76,811,856 $319,717,627
2008 250,781,259 79,165,809 $329,949,076
2009 254,644,492 74,578,102 $329,224,603
2010 259,334,604 70,638,036 $329,974,650
2011 259,607,597 74,089,236 $333,698,844
2012 261,408,971 73,693,380 $335,104,363
2013 266,381,378 73,553,883 $339,937,274
2014* 269,601,656 69,406,198 $335,538,253
The District’s combined tax rate for the past ten years is as follows:
Year General
Fund Tax Rate
Property Tax
Revenues
Pension Fund Tax Rate
Pension Tax Revenues
Net Ambulance Revenues
2005 $0.3947 1,253,707 $0.050 416,163
2006 $0.4447 1,445,965 $0.050 429,319
2007 $0.4947 1,738,915 $0.048 480,510
2008 $0.4947 1,647,349 $0.048 159,840 447,918
2009 $0.4947 1,620,609 $0.0489 159,201 535,415
2010 $0.4947 1,645,953 $0.0489 160,884 561,856
2011 $0.4947 1,643,876 $0.0493 160,321 591,025
2012 $0.4947 1,668,169 $0.0494 166,085 659,877
2013 $0.4947 1,658,298 $0.050 168,0634 516,820 (625,000)
2014 (estimated) $0.4932* 1,671,987 $0.0498* 168,326 625,000*
Ambulance User Fee Income For 2014-2015, there will be no increase in rates. In addition, the 2014-2015 budget reflects a 0% increase in billable call volume for expected emergency calls. Therefore, it is not expected to have an impact on the ‘net’ ambulance fees for 2014-2015.
Ambulance rates charged by the District including Medicare and Medicaid reimbursement rates are as follows:
District
Ambulance Rate
Medicare Allowable
Medicare Adjustmen
t
Medicaid Allowable
Medicaid Adjustmen
t
Resident Rates (Emergency) Basic Life Support $ 600.00 $ 346.37 $ 253.63 $ 147.52 $ 452.48 Advanced Life Support $ 750.00 $ 411.31 $ 338.69 $ 239.79 $ 510.21 Advanced Life Support Level 2 $1,000.00 $ 595.32 $ 404.68 $ 208.89 $ 791.11 Mileage-Per Loaded Mile $ 7.50 $ 7.16 $ 0.34 $ 3.50 $ 4.00
Non-Resident Rates (Emergency) Basic Life Support $ 800.00 $ 346.37 $ 453.63 $ 147.52 $ 652.48 Advanced Life Support $ 950.00 $ 411.31 $ 538.69 $ 239.79 $ 710.21 Advanced Life Support Level 2 $ 1,200.00 $ 595.32 $ 604.68 $ 208.89 $ 991.11 Mileage-Per Loaded Mile $ 9.00 $ 7.16 $ 1.84 $ 3.50 $ 5.50
Other Rates Non-covered mileage $ 9.00 $ 0.00 $ 9.00 $ 0.00 $ 9.00
PCR Duplication Fees $ 21.36
PCR Copy Fee Per Page $ 0.50
PCR Notary Fee $ 2.00
Other Revenue This category includes interest earnings on investments and income from sale of property or equipment. Estimated interest earnings should be based on current yield rates and expected investment amounts. Estimated sale of property or equipment is based on submitted proposals.
Cash Management and Investing The District maintains separate accountability by fund for cash and investment accounts. In accordance with District policy, the District’s Chief Financial Officer is authorized to invest funds which are not immediately needed, in obligations of the United States Treasury, United States Government Agencies and Instrumentalities, Repurchase Agreements, and Certificates of Deposit.
Financial institutions are required to fully collateralize deposits with federal depository insurance and/or securities pledged to the District. As a means of managing exposure to fair value loss arising from increasing interest rates, the District’s governmental funds investment policies limit maturities to 12 months or less.
Budgeted Expenditures
General District Operations 366,400
Building/Grounds 56,663
EMS Operations 51,150
Personnel Wages & Benefits 1,765,986
Public Relations 13,700
Vehicle Operations 74,138
Total Expenditures: 2,328,037 General Operations The 24% increase in GO costs for 2014-2015 relates primarily to changes in Service Agreements and IT Maintenance/Support. The Billing staff will be implementing a patient portal that patients will have secure online access to paying their bills as well as added functionality for the billing staff. In 2015, the District has two possible board member seats open in April. The District is responsible for paying the Jefferson County Election Authority to hold these elections and the estimated cost for 2015 is $18,000 (up from $15,258 in 2014). The District will be adding a Breach Insurance for 2015 and received a discount for completing additional training. Capital Purchases/Expenditures Capital assets are defined by the District policy as assets with an initial individual cost of $5,000 or more and an estimated useful life in excess of one year. These capital expenditures are budgeted in the General Fund. The cost of normal replacement, maintenance and repairs that is less than $5,000 and does not add to the value of the asset or materially extend the asset’s life is not capitalized. Major capital expenditures for 2014-2015 include the following: one ambulance is due for remount. A remount is the process of removing the box from an existing ambulance and putting a new chassis underneath. $126,893.50 has been allocated for this line item. $50,000 has been allocated for the purchase of a new 6800 vehicle and $53,441 allocated for contingency. Building and Grounds Building and Grounds expenditures include insurance, utilities as well as the replacement and/or repairs of buildings, furniture and certain equipment. These accounts also include
$3,000 for supplies relating to the general operations and upkeep of District facilities (i.e. toiletries, consumables, cleaning supplies, insecticides, etc.). Major repairs budgeted for 2014 include the following: nothing scheduled at this time. EMS Operations Total EMS Operations expenditures are budgeted at $51,150 of which patient medical supplies comprise $39,800 (or 78%) and the repair and replacement of medical equipment maintenance and repairs comprise $6,000 (or 12%). This year’s budget also includes $0.00 in contingency for radio equipment/programming or replacement of medical equipment..
Personnel Wages and Benefits Wages and Benefits comprise 61% of the District’s total operating expenditures. Being in the service industry, the District’s primary expenditures are wages and benefits. The District currently employs 16 full-time employees and 23 part-time employees, of which 33 are licensed paramedics. The District currently operates and staffs 3 ambulances (no changes have been made since 2008). Due to budget constraints, the District has no plans for additional staffing during 2015. In addition, the one Assistant Chief vacancy will not be filled at this time. The full-time paramedics and office staff are members of the International Association of Firefighters Local 2665. The District has entered into labor agreements covering the period May 21, 2013 through May 21, 2016. The labor agreements cover the District’s full-time paramedics and the three administrative staff positions. As of September 4, 2014 there have been no meetings with labor to discuss any changes to existing agreements. Until such time as a new agreement is reached, the current agreement shall remain in effect. The 2014-2015FY budget reflects a 1.5% COLA increase to existing wages and benefits. The District’s group insurance (health, dental, vision, life, and disability) is due for renewal on November 1, 2014. The budget reflects a 4% increase in health insurance, a 12% increase in disability insurance, and a 12% increase in all other lines. The amount budgeted for group insurance anticipates changes in individual elections, as well as the increase in premium. Education and Training As mentioned previously, the District provides education and training to its employees as well as to citizens of Jefferson County and surrounding communities. The cost of holding classes includes several types of expenditures which are budgeted in the Education and Training category, except for teaching and training wages which are budgeted in wages and benefits. Classes, trainings and conference fees are the most expensive costs of the programs at $17,922 (or 53% of the total education and training expenditures). The next highest are Education Allowance at $9,500 (or 28%). Public Relations Public Relations line items cover public relations expenses, community education, staff recognition and community newsletters. Programs include our VIAL of Life program, car seat installations, community movie nights, helmet fittings, Halloween glow bracelet program, and other brochures and handouts. Total Public Relations expenditures for 2014 are $13,700.
Vehicle Operations The District relies on an outside service center for maintaining its fleet of vehicles. Vehicle Operations expenditures are projected at $74,138 and include all purchases of goods and services related to maintaining our fleet. Maintenance and Repairs are budgeted at $30,000 and comprise 40% of the total vehicle operations cost with fuel costs also totaling $30,000 (or 40%). The next highest line item is insurance premium at 7,838 for 2015.
2012-2013 Fuel by Unit Unit Net Cost Gallons
6800 $2,845.15 811.027 6802 $990.29 303.965 6817 $8,370.79 2432.047 6827 $3,894.75 1137.343 6837 $7,666.84 2232.731 6847 $5,222.32 1505.939 Total $28,990.14 8,423.052
Vehicle Number
Service Budgeted
Chassis Year & Make
Box Year, Type & Mfr
Current Miles
Budgeted Amount Disposition
6827 Remount 2006 Ford 2005 Type II Medtec
113,597 $126,893.50 Retire chassis
6817 None 2007 Ford 2005 Type II Medtec
88,300 $ -
6837 None 2012 Ford 2006 Type II Medtec
30,743 $ -
6847 None 2012 Ford 2006 Type II Medtec
88,335 $ -
6802 Replacement 2007 Ford Crown Victoria
N/A $ - Sale and replace with 2006 Silverado
6800 Replacement 2006 Chevrolet Silverado
N/A 113,792 $50,000.00 Replacement in
2013-2014FY
$126,893.50
Nov '14 - Oct 15Ordinary Income/Expense
IncomeBeginning Fund Balance 665,250REVENUES 2,301,837OTHER FUNDING SOURCES 1,200
Total Income 2,968,287
Gross Profit 2,968,287
ExpenseGENERAL DISTRICT OPERATIO... 366,400BUILDING/GROUNDS 56,663EMS OPERATIONS 51,150PERSONNEL WAGES & BENEFI... 1,765,986PUBLIC RELATIONS 13,700VEHICLE OPERATIONS 74,138Ending Fund Balance 515,250Reserve Operating Funds 125,000
Total Expense 2,968,287
Net Ordinary Income 0
Net Income 0
1:56 PM North Jefferson County Ambulance District10/09/14 BudgetCash Basis November 2014 through October 2015
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Nov '14 - Oct 15Ordinary Income/Expense
IncomeBeginning Fund Balance 665,250REVENUES
Ambulance Net Income 625,000Education and Training Fees 3,300Interest Income 1,500Sale of Bicycle Helmets 50Taxes 1,671,987
Total REVENUES 2,301,837
OTHER FUNDING SOURCESGrant Funding 0Proceeds from Insurance 0Proceeds from Sale of Assets 1,200
Total OTHER FUNDING SOURCES 1,200
Total Income 2,968,287
Gross Profit 2,968,287
ExpenseGENERAL DISTRICT OPERATIONS
Administrative CostsEquipment 500Licensing/Professional Fees 0Phone System Maint/Programming 500Postage 3,126Service Agreements 4,500Supplies 2,500
Total Administrative Costs 11,126
Capital Purchases 230,334Computer/IT
Equipment Replacement/New 2,000IT Maintenance/Support 44,814
Total Computer/IT 46,814
Election of Board Director(s) 18,000Employer Liability Insurance 10,987Grant Allocation 0Lease Payments 0Professional Services
Accounting Services 10,275
1:56 PM North Jefferson County Ambulance District10/09/14 BudgetCash Basis November 2014 through October 2015
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Nov '14 - Oct 15Banking Fees 1,590Consulting Agreements 300Legal Services 12,750Payroll/HR Services 22,635
Total Professional Services 47,550
Subscriptions/Memberships 1,589
Total GENERAL DISTRICT OPERATIO... 366,400
BUILDING/GROUNDSEquipment 3,000Insurance Premium 4,983Materials & Supplies 3,000Maintenance & Repairs 16,890New Projects 3,610Utilities
Internet/Anaolg/Land Lines 7,980Utilities - Other 17,200
Total Utilities 25,180
Total BUILDING/GROUNDS 56,663
EMS OPERATIONSCellular Phone Service/Equipmen 3,000Disposable Supplies/Meds/Return 39,800Medical Equipment 0Maintenance & Repairs 6,000Materials & Supplies 350Personal Protective Equipment 2,000Radio Maintenance/Equipment 0
Total EMS OPERATIONS 51,150
PERSONNEL WAGES & BENEFITSBenefit Administration 900Fitness/Wellness
Equipment 1,000Materials & Supplies 1,000Professional Services 6,000Screenings 3,000
Total Fitness/Wellness 11,000
Group InsuranceDental 11,822Disability 17,794
1:56 PM North Jefferson County Ambulance District10/09/14 BudgetCash Basis November 2014 through October 2015
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Nov '14 - Oct 15Medical 150,000Pharmacy 28,638Vision 2,449
Total Group Insurance 210,703
Professional HealthMedical Claims >1000 2,000Immunizations/Drug Testing 4,000
Total Professional Health 6,000
Recuitment/Procurement 5,000Training & Education
Classes /Trainings/Conferences 17,922Education Allowance 9,500Equipment 800Materials & Supplies 450Meal Service 0Travel 5,257
Total Training & Education 33,929
Wages & BenefitsBoard Director Reimbursement 3,000Duty Pay 6,240FICA Tax 95,570Holiday Pay 4,500Longevity 19,600Trainings/Meetings 23,971Teaching Overtime 4,008Uniform Allowance 12,600Wages (FT) 988,701Wages (PT) 203,264Workers Compensation 137,000
Total Wages & Benefits 1,498,454
Total PERSONNEL WAGES & BENEFI... 1,765,986
PUBLIC RELATIONSEducation/Training 500Community Outreach 5,800Materials & Supplies 3,800Staff Appreciation/Recognition 3,600
Total PUBLIC RELATIONS 13,700
VEHICLE OPERATIONS
1:56 PM North Jefferson County Ambulance District10/09/14 BudgetCash Basis November 2014 through October 2015
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Nov '14 - Oct 15Equipment 6,000Fuel 30,000Insurance Premium 7,838Maintenance & Repairs 30,000Materials & Supplies 300
Total VEHICLE OPERATIONS 74,138
Ending Fund Balance 515,250Reserve Operating Funds 125,000
Total Expense 2,968,287
Net Ordinary Income 0
Net Income 0
1:56 PM North Jefferson County Ambulance District10/09/14 BudgetCash Basis November 2014 through October 2015
Page 4
Nov '14 - Oct 15 Budget $ Over Budget
IncomeTaxes, penalties & interest 0.00 168,825.91 -168,825.91
Total Income 0.00 168,825.91 -168,825.91
ExpenseAdministrative Fees 0.00 500.00 -500.00
Total Expense 0.00 500.00 -500.00
Net Income 0.00 168,325.91 -168,325.91
2:34 PM North Jefferson County Ambulance District-Pension09/09/14 Profit & Loss Budget vs. ActualAccrual Basis November 2014 through October 2015
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