RECOMMENDATION(S):

ACCEPT multiple year financial overview illustrating trends and changes to District revenues, expenditures, and operating fund balance.

FISCAL IMPACT:

None. This report is for informational purposes only.

BACKGROUND:

On October 4, 2011, at the first meeting of the Contra Costa County Fire Protection District Board of Directors, a report was presented on the status of the District's current year and projected future year budgets. Trends in revenues and expenditures were examined. It was noted that expenditures now exceed revenues and the District is currently relying on reserves to balance its annual budget. The District is funded primarily by property taxes and, therefore, has been particularly hard hit by the housing market decline and resulting impact on property tax revenues. It was additionally noted that the District's pension rate for its largest employee group increased by nearly 100% from FY 2010-11 to FY 2011-12. That pension rate is projected to continue increasing over the next several fiscal years.