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

2. City Financial Outlook Mayor’s Office is projecting a $94 million budget shortfall for FY 2006-07 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)

3. SFFD Budget Instructions Reduce baseline budget by $364,465 Reduce baseline budget by $364,465 –Absorb half of the employee contribution to pension (3.75% of non-uniform employee retirement cost) Propose additional reductions worth 3% of the General Fund support Propose additional reductions worth 3% of the General Fund support –For the SFFD, this amount is $4,183,497 Propose one-time expenditures of $4,020,305 Propose one-time expenditures of $4,020,305

4. SFFD Budget Overview Revenues FY 2006 FY 2007 Difference % Change Fire Department Revenue 64,284,877 59,651,517 (4,633,360)-7% General Fund Support 141,466,160 150,857,062 9,390,9027% Support from Other City Depts 18,619,836 20,980,789 2,360,95313% Total 224,370,873 231,489,368 7,118,4953% Expenses Operating Budget 199,904,349 210,663,350 10,759,0015% AWSS Position Expense 1,528,422 1,613,300 84,8786% UASI Position Expense - 383,297 Capital and Equipment 4,298,266 Gift appropriation 20,000 (20,000)-100% Airport 13,110,804 14,095,122 984,3188% Fireboat 2,309,032 2,335,481 26,4491% Treasure Island 3,200,000 4,550,186 1,350,18642% Total 224,370,873 233,640,736 9,269,8634%

5. SFFD FY 07 Projected Revenues BudgetProjection Proposed DivisionDescriptionFY06 VarianceFY07Incr/Decr StateSales Tax Allocation 35,000,000 - - PreventionAll Revenues 5,149,000 5,740,490 591,490 5,729,200 580,200 PreventionOvertime Recovery 500,000 762,098 262,098 600,000 100,000 Support ServRental Income 191,323 223,304 31,981 191,323 - TrainingTreasure Island Rental 45,000 44,738 (262) 45,000 EMSPatient Net Revenue 19,334,257 - 18,071,994 (1,262,263) EMSMisc Revenue 12,000 14,724 2,724 14,000 2,000 AdminBuilding sale 3,650,000 - - (3,650,000) GiftGifts and Bequests 20,000 - - (20,000) UASI FY05Homeland Grant 383,297 - - (383,297) Total 64,284,877 65,172,908 888,031 59,651,517 (4,633,360)

6. SFFD Revenues FY07 Fire Prevention Fire Prevention –Fees remain at FY06 rates EMS Services 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)

7. SFFD Projected Expenses Operating Budget FY07 FY 2006FY 2007Change fr % of ObjDescriptionBudget FY 2006ChangeBudget 1Salaries 154,557,518 164,116,235 9,558,7176%78% 13Fringe 26,896,351 28,851,840 1,955,4897%14% 21Non Personal Services 1,136,843 887,931 (248,912)-22%0% 40Materials and Supplies 3,596,955 3,613,955 17,0000%2% 60Equipment 2,659,584 2,619,544 (40,040)-2%1% 81Services of Other Depts 15,450,256 15,257,329 (192,927)-1%7% 86Expense Recovery (3,030,758) (3,266,588) (235,830)8%-2% 87Capital Recovery (1,362,400) (1,416,896) (54,496)4%-1% Total 199,904,349 210,663,350 10,759,0015%100%

8. Operating Budget FY07 Staff proposes a small number of position reclassifications in Administration, Prevention, Support Services and AWSS to improve operations Staff proposes a small number of position reclassifications in Administration, Prevention, Support Services and AWSS to improve operations Staff has reduced expenditures when possible and reallocated funding for shortfalls related to rising energy costs Staff has reduced expenditures when possible and reallocated funding for shortfalls related to rising energy costs SFFD has been able to reduce some work orders to other departments, including Workers Compensation SFFD has been able to reduce some work orders to other departments, including Workers Compensation Funding for promotional testing will need to be negotiated because it was removed from the baseline budget in FY 06. Funding for promotional testing will need to be negotiated because it was removed from the baseline budget in FY 06.

9. FY 07 SFFD Budget Balancing 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

10. FY 07 SFFD Budget Balancing FY 07 Budget Proposed FY 07 Budget Proposed$233,640,736 Amount over target$ 2,151,368 Proposed revenue adj$ 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.

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

12. One Time Expenditures Equipment Target from the Mayor’s Office is $4,020,305 Equipment Target from the Mayor’s Office is $4,020,305 SFFD proposes the following: 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

13. 3% Budget Contingency The Mayors Office has asked for proposals for additional reductions worth 3% of the General Fund support The Mayors Office has asked for proposals for additional reductions worth 3% of the General Fund support For the SFFD, this amount is $4,183,497 For the SFFD, this amount is $4,183,497 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. 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. SFFD will continue to work with the Mayor’s Office on alternatives. SFFD will continue to work with the Mayor’s Office on alternatives.

14. Questions