TO: CCCDA Governing Board of Directors, Calhoun County Residents, and
Participating Municipalities
FROM: Jeff Troyer, Executive Director
Calhoun County Consolidated Dispatch Authority
DATE: Monday, November 18, 2013
SUBJECT: Fiscal Year 2014 Budget Proposal
INTRODUCTION
I hereby present to you for consideration, my recommendation for Calhoun County Consolidated Dispatch Authority’s (CCCDA) Fiscal Year 2014 Budget. This proposal was prepared in accordance with Generally Accepted Accounting Principles and in compliance with the Uniform Budget and Accounting Act, as well as CCCDA’s Fiscal Policies. The following Public Hearing Notice is posted on CCCDA’s website (www.calhouncounty911.org) and will be published in the Battle Creek Shopper and the Ad-visor & Chronicle:
SUMMARY
The recommended 2014 Budget includes estimated revenues of $3,676,150 and expenditures totaling $3,676,150; resulting in balanced budget. The following are key factors in this budgetary proposal:
· CALL FOR SERVICE FORMULA GUIDELINES
In January 2013, CCCDA adopted the Call for Service (CFS) Formula Implementation Guidelines depicting how revenue would be generated under the CFS formula. As a matter of transparency for the implementation of this formula, section III (CCCDA Annual Budget) of the guidelines address a strict annual budgetary process to encourage service user participation and budgetary restrictions for fiscal years 2014, 2015, and 2016. Pages 1 and 2 of the attached proposal analyze these budgetary restrictions.
· REVENUES
An itemized list of revenue sources are listed on page 3. We continue to see a decrease in local 9-1-1 surcharge revenue but an increase in State 9-1-1 surcharge monies; including the dedicated training fund monies.
This proposal holds the revenue to be generated by the CFS formula constant. In 2013, the CFS formula generated $1,235,124 from Service Users (municipalities) over a six month period; or an annualized amount of $2,470,248. The revenues to be generated by the same formula in 2014 equate to $2,469,000; a decrease of $1,248.
The line item budget summary (page 13) reveals a 6.2% decrease in overall revenues from 2013. This is offset when you consider CCCDA utilized $296,937 of fund balance for the issuance of municipal refunds/rebates totaling $300,000 in 2013. If you subtract the transferred in amount of $296,937, you are left with total revenues in 2013 of $3,621,433. If you compare that figure to 2014’s anticipated revenue, it reveals an anticipated increase in revenue of $54,717 or 1.5%.
· INSURANCES
I am recommending CCCDA continue to offer the same Health, Vision, and Dental Insurance options to employees. Our insurance plans are currently self-funded and after an analysis by AON (third party administrator), it is recommended we continue the same.
Health
This proposal complies with Public Act 152 of 2011 by electing the “Hard Cap” option. Page 4 identifies the 2014 annual cost limitations for public employers as it relates to medical benefit plans. The limitations increased 2.9% from last year.
CCCDA’s 2014 renewal rates increased 6% on average for all three medical plans. Pages 5 and 6 identify the health insurance costs anticipated for both the Non-Union and Union employee groups.
Dental
Page 7 summarizes the renewal rates for the base plan as well as the buy-up option for employees. CCCDA’s illustrative rates reveal a 17.2% reduction in dental costs for 2014.
Vision
Page 8 summarizes the renewal rates for CCCDA’s vision plan – 1.83% increase.
· PERSONNEL/POSITION BUDGET
The 2014 personnel proposal includes the same positions as approved in 2013: 26 full-time Emergency Telecommunicators, 2 part-time Emergency Telecommunicators, 4 full-time Dispatch Supervisors, 1 full-time CAD Administrator, 1 full-time Deputy Director, 1 full-time Executive Director, and 1 part-time Administrative Assistant. As part of this proposal, I recommend the following changes for 2014:
o Full-time Emergency Telecommunicators – 1.5% wage scale increase as of January 1, 2014 (agreed to in the tentative collective bargaining agreement).
o Part-time Staff (Emergency Telecommunicators & Administrative Assistant) – 1.0% wage scale increase as of January 1, 2014.
o Full-time Dispatch Supervisors – Increase top pay 1.0% effective on position anniversary date (based on performance evaluation).
o Full-time CAD Administrator - Increase top pay 1.0% effective on position anniversary date (based on performance evaluation).
o Full-time Deputy Director - 1.0% salary scale increase as of January 1, 2014.
Page 9 provides a summary of position budgeting costs as it relates to each position’s wages and fringe benefits (only includes retirement costs associated to employees participating in a defined contribution plan).
· DEFINED BENEFIT RETIREMENT COSTS
Page 10 identifies CCCDA’s required employer contribution for defined benefit retirement plans according to the most recent actuarial valuation conducted by Municipal Employees’ Retirement System (MERS). While it was determined CCCDA’s required contribution for 2014 is only $557 per month, I am recommending CCCDA contribute $1000 per month and allow the excess monies ($443) to be distributed among the three plans proportionate to their levels of funding.
· MAINTENANCE/SERVICE CONTRACTS
Page 11 details out all maintenance/service contracts with vendors. We are expecting to see a significant savings on maintenance and service contracts for calendar year 2014 due to a change in Computer Aided Dispatch Systems. This change will save us approximately $60,000 annually but is completely offset by debt services as part of the procurement of the new system for 2014, 2015, and 2016.
· DEBT SERVICES
CCCDA will begin paying on a three year, $250,000 loan from the City of Battle Creek for the purchase of the new CAD system. This debt service is reflected on page 15 of the budget; line items 991.010 and 991.020 totaling $84,584. 2014 also marks the second to last year CCCDA will incur a debt service (capital lease) payment to the City of Battle Creek as a result of an Equipment Lease Agreement both parties entered into in December of 2009. This capital lease payment equals $467,214 and is reflected on page 15 of the budget; line items 992.010 and 992.020.
· OPERATIONAL & CAPITAL PROJECTS
There are two (2) Operational/Capital Projects recommended as part of this proposal:
o Intercom System
$15,000 is requested to implement an intercom system for the exterior entrance doors into the Dispatch Center.
o Radio System Upgrades
$285,000 is requested as part of a multi-year VHF Radio System project (started in 2013). 2014 upgrades will focus on enhancing coverage on the County Fire System as well as conversion to simulcast.
CONCLUSION
This memorandum is to be utilized as a guide while reviewing the budgetary documentation and itemized spreadsheets (16 pages) that will further explain CCCDA’s anticipated revenues and expenditures (personnel, maintenance and service contracts, projects, and debt services).
If you have any questions or concerns regarding this budgetary proposal, please feel free to contact me at (269) 781-9713 or via email at jtroyer@calhouncountymi.gov.
