Fire Department budget questions

Here is the email I sent to PRRD Emergency Services Manager Ryan Thoms, our regional director Merrick Anderson, and alternate Laurence Fisher. Also are links to the budget information and contact information for PRRD board members (and two current alternates). I'll post responses and further information as I receive it.

 

sent Saturday mid-afternoon:

Hello Ryan, Merrick and Laurence,

I've had a look at the budget accepted by Committee of the Whole for Lasqueti Fire Department, and have some questions and some concerns.  My most important questions are marked with an  **

I'd like answers to at least my important questions as soon as possible, and I'd also like a community discussion on the question of a new fire hall to begin before this budget as adopted by the PRRD, which is scheduled, as I understand it, for next Thursday, February 23.  My preference is that the adoption of this budget be delayed until the March board meeting, so that there can be significant discussion of the issues that arise from this budget.

I'm using the budget figures from the February 16 CoW agenda,
https://powellriverregionaldistrict.civicweb.net/filepro/document/59256/...

**Why is there such a large increase in Property Value Tax requisition, from $48,560 to $106,548, a 119.42 increase?  Is this related to the decrease (from $71,975) between 2015 and 2016?  What additional expenses or expenditures are planned for 2017 and future years?

**Please explain the meaning of Prior Year Surplus, line 61290. Was the $37,000 surplus under 2016 brought forward from 2015. because it wasn't spent in 2015?  Is this part of the reason that the tax requisition in 2016 was so much lower? It looks like (unless PYS means something else) there was $14,036 unspent from 2016. If this was the case, why is there such a huge increase in PVT revenue for 2017?

**Budget and expenditure for Communication O&M $1500 budgeted and $549 spent for 2015, yet the budget was increased to $5000 (3 1/3 times as much) for 2016. Actual expenditure was $771, and yet the budget for 2017 remains at $5,000 and will increase from there in future years.  I'm wondering why. Is some large expense in the future being saved up for?  Is this Emergency Dispatch?

**Who is being paid wages of $5,179 in 2017, and slightly more after that year?

Why is the WCB expenditure going up so much, about 2 3/4 times, and staying at this greatly increased amount?

I notice that Training Expense remains at $10,000 for 2017, but is due to decrease to $3,000 after this year, and I'm wondering why.

Why has Vehicle Maintenance & Operation gone down to $3,000 from $11,000 in 2016, and forecast to stay there?

Why was there no expense for Vehicle - Gas & Oil in 2016?

Hall Maintenance budget fir 2015 was $3,500 and expenses were $401. For 2016 budget was $4,000, expenses $681. Why does budget for this remain at this level? Are we saving up?

What does line 61680 Insurance cover? What are we getting for $2,000 per year, on average?

What does 61690 Administration cover?  Why is it decreasing each year?

Why is Contingency, having had no budget in 2015, budget of  $6,659 but no expenditure, set at $2,000 in 2017, reducing to $1,500 for future years?  Is there a percentage of the budget that is used for contingencies? How is the amount set each year?

Professional Fees (budget $11,000 in 2015, no expenditures, budget $5,170 in 2016, $500 expenditure) have been set at $3,970 for 2017, nothing for future years. What does this cover, and how is the amount set?

**Transfer to Reserve was $20,000 last year, and set to increase to $68,000 this year. Why?  What's being saved up for?

**$5,000 is being budgeted for Transfer to Capital for 2017, and $4,000 forecast for 2018. What's this for?

**Total Operating Expenditures says, I believe incorrectly, that the increase of the 2017 budget over 2016 is $34,542, or 28.76%. By my arithmetic is is actually a $52,451 increase, which is slightly less than 51.37% increase.   It appears that the increase has been mistakenly copied from the revenues section, and does not apply to the expenditures.

**Capital budget:  2018 proposal is to transfer from Reserve $50,000, and $4,000 from Operating. I assume that Borrowing Proceeds means that $361,961 is to be borrowed. This seems like it is to be matching funds for a Grant of $784,039  for a total capital revenue of $1.2million, which is to be invested in buildings.

I can only assume that this is the proposed new fire hall for Lasqueti. The community has said pretty strongly and clearly that there is not support for a new fire hall at this point. This might change, but it seems like the Regional Board is proceeding on their plan to replace our fire hall, and make us pay for it, without asking us or listening to us.

If nothing else, I strongly advise that community discussion begin immediately on this topic, before this budget is adopted by the board.

It looks to me like the huge budget increase for 2017, over 2016, and especially the $69,166 to be transferred to Reserves, is an attempt to obtain a new Lasqueti fire hall without having to involve citizens in either the decision to go ahead with this plan, or to have opportunity to discuss the need for or merits of a new hall, or to have any voice on how our taxes are set, collected and spent.

Thank you very much for your prompt response to my questions, and my comments.

Peter Johnston
Lasqueti Island
250-333-8785

PS - I've already emailed Linda Greenan about what I think is an error in the Total Operating Expenditure line

 

The budget is in the CoW agenda package on page 251 and 252  at:
https://powellriverregionaldistrict.civicweb.net/filepro/document/59256/...

 

draft minutes of CoW meeting:

(item 6.11.2, page 9)
https://powellriverregionaldistrict.civicweb.net/filepro/document/59914/...
 

 

Here are the names, phone numbers and email addresses of the directors of the PRRD board, and the Chief Administrative Officer:

Regional directors:  (I understand that director Gisborne is ill, and Merrick is away.)

area A   Patrick Brabazon (Board Chair)     604 483-4310     brabazon [at] shaw [dot] ca 
area B   Stan Gisborne     604 485-2935     stangis [at] telus [dot] net
alternate Alan Rebane    604 485-7737    alanrebane [at] shaw [dot] ca

area C   Colin Palmer 604 414-5740     csp12345 [at] shaw [dot] ca
area D   Sandy McCormick     604 414-3525     sandynleeti [at] gmail [dot] com
area E   Merrick Anderson     250 333-8773     merrickanderson9 [at] gmail [dot] com
alternate Laurence Fisher  250-333-8614  laurence [at] wildwood [dot] ca

Municipal directors

  Russell Brewer   604 414-8310    rbrewer [at] cdpr [dot] bc [dot] ca
  CaroleAnn Leishman    604 483-6171   cleishman [at] cdpr [dot] bc [dot] ca

Chief Administrative Officer

  Al Radke 604 485 2260  al [dot] radke [at] powellriverrd [dot] bc [dot] ca

Manager of Emergency Services

Ryan Thoms   604 485-2260  emergcoord [at] powellriverrd [dot] bc [dot] ca

 

 

Comments

email to directors, alternates and CAO

I sent this email late Monday evening"

Dear PRRD directors and alternates, and CAO,

This evening I posted on the Lasqueti web site an email I sent to Emergency Services Manager Thoms, and Lasqueti's director and alternate with questions about the Lasqueti Fire Department's budget for 2017, as approved by the Committee of the Whole last Thursday. My posting is at http://lasqueti.ca/node/5644

I also sent a notice to the Lasqueti email list, alerting people to the PRRD's apparent plan to proceed with a new fire hall for Lasqueti, with a huge tax increase this year, despite the fact that the Lasqueti community has said to you pretty clearly and directly and strongly that we neither want nor see the need for a new fire hall.

It seems totally inappropriate for you to proceed with this plan, and with such a large budget increase this year, with absolutely communication or notice to us about it. It is especially grievous since you adopted a strategic priority for improved public engagement, yet you seem to have totally ignored the input we have given you already, including when you were here.

I urge you to explain your your thinking to the Lasqueti community, and immediately begin some public engagement and discussion with us on the issues. You will need to listen to what people here say and think, and make sure that you reflect carefully on it before you make decisions that affect us.

Thank you for your careful consideration of this. I look forward to your response, individually and collectively.

Peter Johnston
Lasqueti Island
250-333-8785

Tuesday morning I also sent a copy of my post to the email list:

On Saturday I was alerted to some oddities in the budget for our fire
department that had been approved by the PRRD Committee of the Whole
(CoW where the discussions take place, and recommendations made to the
board) at their meeting Thursday. The Committee voted, according to the
draft minutes, to "Proceed with the Lasqueti Island Volunteer Fire
Service budget as proposed for inclusion in the 2017 -2021 financial plan.

In the likely-to-be-adopted budget for 2017 is a huge increase in
revenue from our property taxes (to $106,548 from $71,975 in 2015 and
$48,560 in 2016 not including $30,000 raised each year from the parcel
tax) and a huge transfer to reserve ($61,166) and a plan to borrow
$361,961 in 2018 and build a $1.2million building (with a grant of
$784,039). The plans for 2018 can easily be put off for one or more years.

Saturday afternoon I sent a long email to PRRD Emergency Services
Manager Ryan Thoms, our regional director Merrick Anderson, and our
alternate director Laurence Fisher. I asked detailed questions about
the LIVFD budget and reminded them that the Lasqueti community had
strongly told the PRRD board that we did not need or want a new fire
hall. I have not heard from any of them, as of early evening Monday.

I've posted my email on the Lasqueti web site, along with links to the
budget information and contact information for PRRD board directors (and
alternates). I'll post any response I get from Ryan Thoms or Merrick or
Laurence, and any further information I receive on this issue.

It's all posted here: http://lasqueti.ca/node/5644

Tuesday afternoon I received this email from Ryan Thoms:

Thank you for your recent inquiries regarding the fire department budget. With all due respect, I will provide you with answers to your questions by the end of this week. I currently have other priority matters that I must attend to so I cannot answer your questions at this time.

Ryan's answers to my questions

Hello Peter

Thank you for your patience while awaiting my response.

I’ve cut and pasted your questions into this email so I can answer them one by one, with my answers in blue. You should be aware that Fire Chief Carlson has requested some recent additions to the LIVFD budget so when the draft budget is brought to the next Committee of the Whole meeting some of the line items will be different from what you saw in the February draft, but the overall proposed budget remains generally the same with the same recommended requisition amount.

The LIVFD budget doesn't seem to be on the agenda for Thursday's board meeting.

The LIVFD budget is not on this week’s Board meeting agenda as the budgets are not adopted until the March meeting of the Board. The recent report, delivered to the Committee of the Whole on February 16th, regarding the fire department budgets was not seeking a Board resolution but rather looking to present the draft budgets to Committee for discussion and feedback to staff ahead of adoption in March.

**Why is there such a large increase in Property Value Tax requisition, from $48,560 to $106,548, a 119.42 increase? Is this related to the decrease (from $71,975) between 2015 and 2016? What additional expenses or expenditures are planned for 2017 and future years?

This service has been significantly underfunded for many years with the result being that there are now deficiencies in several aspects of the LIVFD that will need to be addressed. There is a need to significantly increase fire training as well as communications equipment. I am also recommending increasing contributions to reserve as you’ve noted in one of your questions further below.

**Please explain the meaning of Prior Year Surplus, line 61290. Was the $37,000 surplus under 2016 brought forward from 2015. because it wasn't spent in 2015? Is this part of the reason that the tax requisition in 2016 was so much lower? It looks like (unless PYS means something else) there was $14,036 unspent from 2016. If this was the case, why is there such a huge increase in PVT revenue for 2017?

You are correct - Prior Year Surplus is the amount unspent from the previous year. The recommended increase for 2017 is due to the needs mentioned in my previous answer.

**Budget and expenditure for Communication O&M $1500 budgeted and $549 spent for 2015, yet the budget was increased to $5000 (3 1/3 times as
much) for 2016. Actual expenditure was $771, and yet the budget for 2017 remains at $5,000 and will increase from there in future years. I'm wondering why. Is some large expense in the future being saved up for?
Is this Emergency Dispatch?

The intent for 2016 was for the LIVFD to purchase some radios and related equipment however most of these purchases did not occur. The intent for future years is to purchase appropriate pagers and radios for dispatch and communications.

**Who is being paid wages of $5,179 in 2017, and slightly more after that year?

That is a portion of my wages. Beginning this year my wages are being apportioned among the five services that I manage for the PRRD.

Why is the WCB expenditure going up so much, about 2 3/4 times, and staying at this greatly increased amount?

This WCB includes coverage for the LIVFD members as well as now for me.

I notice that Training Expense remains at $10,000 for 2017, but is due to decrease to $3,000 after this year, and I'm wondering why.

This number was set at $10,000 for the proposal put forth for the February 16th Committee of the Whole as I did not at that time have Fire Chief Carlson’s training budget request. The draft budget proposal to be presented for the March COTW will be significantly higher. The majority of this increase comes as the LIVFD must now begin formal firefighter training to meet the required competencies for the exterior fire operations service level.

Why has Vehicle Maintenance & Operation gone down to $3,000 from $11,000 in 2016, and forecast to stay there?

The 2016 budget identified some necessary mechanical repairs for the LIVFD fire apparatus. Currently we don’t have any plan for significant repairs for apparatus in 2017.

Why was there no expense for Vehicle - Gas & Oil in 2016?

The LIVFD purchases gas and oil by account at the False Bay Fuelling station. The account was paid toward the end of 2015 and we did not receive another request for payment again until just recently in early 2017.

Hall Maintenance budget fir 2015 was $3,500 and expenses were $401. For
2016 budget was $4,000, expenses $681. Why does budget for this remain at this level? Are we saving up?

The budgeted amount in this line is intended to address identified maintenance issues with the fire hall. For several years the main fire hall door has been identified as in need of repair so this was budgeted but the work did not get done. This has now been budgeted again for 2017 and I understand the work is now getting done.

What does line 61680 Insurance cover? What are we getting for $2,000 per year, on average?

This covers liability and property protection.

What does 61690 Administration cover? Why is it decreasing each year?

The administration cost is applied in every service budget at 8% of the subtotal O&M so it rises or falls in relation to the overall budget. This covers the costs of PRRD service administration.

Why is Contingency, having had no budget in 2015, budget of $6,659 but no expenditure, set at $2,000 in 2017, reducing to $1,500 for future years? Is there a percentage of the budget that is used for contingencies? How is the amount set each year?

The contingency amount is there to allow the service to address unpredicted issues. There is no firm rule for the amount put in contingency. I am recommending $2,000 for this year. The $1,500 for future years is merely a forecasted number. We use a process of “zero-based budgeting” whereby we build the budget every year by specifically reviewing each expense so the contingency will be reviewed again in 2018.

Professional Fees (budget $11,000 in 2015, no expenditures, budget
$5,170 in 2016, $500 expenditure) have been set at $3,970 for 2017, nothing for future years. What does this cover, and how is the amount set?

This budget line is for paying for professional services, for example for architects or for legal surveys. In 2016 the $500 paid the LIVFD portion for the fire service consultants for their work to produce the Recruitment and Retention Review. In 2017 I am proposing $3,970 to cover the costs of a GIS professional for mapping for the LIVFD assets.

**Transfer to Reserve was $20,000 last year, and set to increase to
$68,000 this year. Why? What's being saved up for?

The reserve fund is for saving up for anticipated future capital costs. While there is currently no immediate plan to build a new fire hall or buy new fire apparatus it is my recommendation that the service prepare for these eventualities. The LIVFD has an ageing fire hall with significant shortcomings. The LIVFD also has the oldest apparatus fleet of all the PRRD’s fire services. The LIVFD will also need to invest in SCBA and other firefighting equipment in order to comply with current firefighter safety requirements. None of these items are actually proposed in the current 2017 budget but they are all foreseeable expenditures.

**$5,000 is being budgeted for Transfer to Capital for 2017, and $4,000 forecast for 2018. What's this for?

Capital items in 2017 will be a new fire hall door and installation of a water tank at the south fire hall. The 2018 and any LIVFD future years capital is a forecasted amount but the amount will be revisited in that budget year. In the other fire services we have developed capital asset replacement plans, whereby we have identified the anticipated year for replacing fire apparatus or fire halls or other significant capital item so that we can better prepare for these future capital costs. There is no capital replacement plan for the LIVFD so I do not have confidence in any forecasted capital amounts.

**Total Operating Expenditures says, I believe incorrectly, that the increase of the 2017 budget over 2016 is $34,542, or 28.76%. By my arithmetic is actually a $52,451 increase, which is slightly less
than 51.37% increase. It appears that the increase has been mistakenly
copied from the revenues section, and does not apply to the expenditures.

The increase is measured by the difference between the 2016 budget and the 2017 budget (and not the 2016 Actual). The 2016 budgeted total operating expenditures was $120,030 and the proposed 2017 total operating expenditures are budgeted at $158,554 which makes an increase of $38,524.

**Capital budget: 2018 proposal is to transfer from Reserve $50,000, and $4,000 from Operating. I assume that Borrowing Proceeds means that
$361,961 is to be borrowed. This seems like it is to be matching funds for a Grant of $784,039 for a total capital revenue of $1.2million, which is to be invested in buildings.

We are always watching for and researching opportunities for grant funding. Unfortunately there is currently only very minimal grant opportunities for fire department capital expenses.

I can only assume that this is the proposed new fire hall for Lasqueti.
The community has said pretty strongly and clearly that there is not support for a new fire hall at this point. This might change, but it seems like the Regional Board is proceeding on their plan to replace our fire hall, and make us pay for it, without asking us or listening to us.

On November 24, 2016, the Board adopted its Asset Management Policy 3.14. This policy states that “The Powell River Regional District believes that proper and complete asset management improves the Powell River Regional District’s (PRRD) ability to serve its communities.” And “Well planned, managed and maintained assets are essential to maintaining the services and sustainability of the PRRD”

Building up the reserves is a common asset management practice. By building reserves we are preparing the LIVFD service for the eventual renewal of its capital assets and by increasing the reserves we will be able to reduce the borrowing costs when the asset is rebuilt, upgraded, or replaced. I believe my recommendation to build the LIVFD reserves in consistent the Board’s Asset Management policy and is in the best interest of the sustainability of the LIVFD.

If nothing else, I strongly advise that community discussion begin immediately on this topic, before this budget is adopted by the board.

The proposed budget will be before the Committee of the Whole again in March, and will come before the Board at its meeting scheduled for March 23rd.

It looks to me like the huge budget increase for 2017, over 2016, and especially the $69,166 to be transferred to Reserves, is an attempt to obtain a new Lasqueti fire hall without having to involve citizens in either the decision to go ahead with this plan, or to have opportunity to discuss the need for or merits of a new hall, or to have any voice on how our taxes are set, collected and spent.

My recommendation to transfer funds to the reserve is my application of the guidance set forth in Policy 3.14, as well as my recommendation to best prepare the LIVFD for its future capital needs, including fire hall replacement. Given that the reserves are currently well short of the anticipated costs of any future fire hall the PRRD will need to borrow the majority of that cost whenever that happens. It will therefore not be possible for the PRRD to proceed with constructing a new fire hall without the involvement of the Lasqueti public since long term borrowing requires elector consent.

If you have any further questions please give me a call.

sincerely

Ryan Thoms
Manager of Emergency Services

new, more detailed questions and comments

I sent this email to Ryan Thoms, Merrick, Laurence, and Al Radke Saturday evening:

Hello Ryan,

Thank you very much for your responses to my questions.

Despite all the detail I've asked for and you have given me, I don't understand the intent and goal for the Lasqueti Island Volunteer Fire Department. I also have no idea how much money there is in the reserve accounts for LIVFD. This year, $69,166 is budgeted to be transferred to reserves, plus $5,000 to Capital (I assume reserves).

In 2016 $20,000 was transferred to reserve. For 2017 it is to be $69,166; and for 2018 $45,090; 2019 $47,310; then in 2010 and 2021 it goes down a very small amount. Why the huge increase for this year, and then reduced amounts in the next few years? What is the thinking around these amounts? Who has been involved in the discussion and decision-making? Have Lasqueti firefighters and taxpayers been consulted?

As is usual, your answers have made some of my questions more specific?

When was the decision made to take part of your salary from each fire department? What was the rationale behind this decision? How were the portions allocated? Is your new classification as a fire department staff person (rather than an administrator) responsible for all, or most, or some of the large increase in WCB costs beginning in 2017?

Budget amounts for contingency seem to be all over the map, without any obvious pattern or plan. There should be some policy or rationale for this.

Looking at the budgeted amounts for each year, both in total operating revenues and total operating expenses, they have been increasing from $110,551 (2015 - $73,597 spent), $120,030 (2016 - $102,103 spent), and a big jump to $154,554 for 2017, then back to $139,548 for 2018 and future years. If there was any reasonable incremental growth, we would expect the 2017 operating budget to be very close to $130,000 (and likely only about $110,000 actually would be spent). What is the need for, or rationale for, the huge increase in taxes and budget for 2017?

I also notice that debt payments of $21,800 are to begin in 2018 and carry on for an unknown number of years. What is the debt being incurred for? Will the taxpayers be consulted about this? Will they be able to say yes or no to whatever debt is being proposed?

When I asked about why the training budget is reduced to $3.000 after 2017, you let me know that it will be significantly higher than $10,000 for 2017. Will that significantly higher expense continue for future years, or will it actually, as indicated, be reduced to $3,000 per year?

I understand that the fire hall doors have been replaced. I expect that this was fairly costly. $3,500 and $4,000 had been budgeted for it in the last two years, and again for 2017 (when it actually has been done). Do you anticipate that $4,000, slowly increasing, will be needed each year in future, especially as the last two years only a few hundred dollars have been needed each year?

Insurance - I understand liability. Is the property protection fire insurance for the fire hall?

Administration - I understand the concept, but it seems that none of the numbers come to 8% of the subtotal O&M. Since part of your salary (and WCB benefits) starting in 2017 come from this budget, should not the administration levy be reduced fairly significantly?

Professional fees - why budget $3,970 for GIS professional to map PRRD assets? Do the property line surveys not accurately enough let you know where these assets are? What's the need for spending $4,000 to locate them on an electronic database? Don't you know accurately enough where they are?

Thank you again for your responses to my first batch of questions. I hope you can answer these ones relatively quickly and easily. I hope they will also spark thought and discussion from our regional director and his alternate, and the Lasqueti taxpayers and citizens.

Peter

Ryan's answers to my further questions

Hi Peter. Here again are my answers in blue below each of your questions:

Despite all the detail I've asked for and you have given me, I don't understand the intent and goal for the Lasqueti Island Volunteer Fire Department.

The intent of my recommendations are for the LIVFD to begin working in a sustainable fashion toward its service compliance requirements.

I also have no idea how much money there is in the reserve accounts for LIVFD. This year, $69,166 is budgeted to be transferred to reserves, plus $5,000 to Capital (I assume reserves).

Currently the LIVFD has $93,354 in reserves.

In 2016 $20,000 was transferred to reserve. For 2017 it is to be $69,166; and for 2018 $45,090; 2019 $47,310; then in 2010 and 2021 it goes down a very small amount. Why the huge increase for this year, and then reduced amounts in the next few years? What is the thinking around these amounts? Who has been involved in the discussion and decision-making? Have Lasqueti firefighters and taxpayers been consulted?

I am guided by policy in my actions. The Board adopted an asset management policy and therefore my recommendation is to put money into reserves when possible to best meet the goals of this policy. My job is to recommend to the Board but the Board is the final decision maker so if you have further questions about public engagement on any matters please direct those questions to Director Anderson or Alternate Director Fisher or members of the Board.

As is usual, your answers have made some of my questions more specific?

When was the decision made to take part of your salary from each fire department? What was the rationale behind this decision? How were the portions allocated? Is your new classification as a fire department staff person (rather than an administrator) responsible for all, or most, or some of the large increase in WCB costs beginning in 2017?

The Board is bound by the Local Government Act. Participants in one service are not expected to subsidize, and are not permitted to be subsidized by, participants of other services. This allocation was based on the recognition that each service should pay for its costs, meaning the time that I devote to matters pertaining to the LIVFD should be compensated through the LIVFD budget. The same holds true for my time with Malaspina, Northside, and Savary Volunteer Fire Departments. The actual budgeted amount was determined as a result of a time in motion study performed in 2016.

Budget amounts for contingency seem to be all over the map, without any obvious pattern or plan. There should be some policy or rationale for this.

Contingency amounts are meant for unanticipated costs and tend to be a relatively small amount to ensure there is something in the budget for unplanned costs. The contingencies are crucial because of the legislation that mandates regional districts to have separate, discrete funds for different services. The cross subsidy rule as mentioned above applies. If you are concerned that this requires a policy then again I recommend you direct this concern to Director Anderson or Alternate Director Fisher or members of the Board.

Looking at the budgeted amounts for each year, both in total operating revenues and total operating expenses, they have been increasing from

$110,551 (2015 - $73,597 spent), $120,030 (2016 - $102,103 spent), and a big jump to $154,554 for 2017, then back to $139,548 for 2018 and future years. If there was any reasonable incremental growth, we would expect the 2017 operating budget to be very close to $130,000 (and likely only about $110,000 actually would be spent). What is the need for, or rationale for, the huge increase in taxes and budget for 2017?

The recommended budget is the result of the LIVFD need for improvements in training, equipment, and for asset management planning.

I also notice that debt payments of $21,800 are to begin in 2018 and carry on for an unknown number of years. What is the debt being incurred for? Will the taxpayers be consulted about this? Will they be able to say yes or no to whatever debt is being proposed?

This projection is based on the forecasted debt payments associated with a new fire hall whenever that is built. The PRRD will need to borrow the majority of that cost whenever that happens. It will therefore not be possible for the PRRD to proceed with constructing a new fire hall without the involvement of the Lasqueti public since long term borrowing requires elector consent. If you have further questions about public engagement please direct those questions to Director Anderson or Alternate Director Fisher or members of the Board.

When I asked about why the training budget is reduced to $3.000 after 2017, you let me know that it will be significantly higher than $10,000 for 2017. Will that significantly higher expense continue for future years, or will it actually, as indicated, be reduced to $3,000 per year?

The LIVFD must now begin budgeting for formal firefighter training and this training will need to be ongoing. This is new for the LIVFD so it is a little early to be able to accurately forecast future training costs but I anticipate that the LIVFD will need to maintain a generally higher budgeted amount in future years in order to maintain firefighter and first responder training.

I understand that the fire hall doors have been replaced. I expect that this was fairly costly. $3,500 and $4,000 had been budgeted for it in the last two years, and again for 2017 (when it actually has been done).

Do you anticipate that $4,000, slowly increasing, will be needed each year in future, especially as the last two years only a few hundred dollars have been needed each year?

Chief Carlson confirmed that the door is complete as of February 2017 so that will be paid from this year’s budget. Now that the door is complete it will not recur in future years’ budgets.

Insurance - I understand liability. Is the property protection fire insurance for the fire hall?

Yes

Administration - I understand the concept, but it seems that none of the numbers come to 8% of the subtotal O&M. Since part of your salary (and WCB benefits) starting in 2017 come from this budget, should not the administration levy be reduced fairly significantly?

The 8% is calculated based on the operating costs.

Professional fees - why budget $3,970 for GIS professional to map PRRD assets? Do the property line surveys not accurately enough let you know where these assets are? What's the need for spending $4,000 to locate them on an electronic database? Don't you know accurately enough where they are?

This detailed mapping is intended to support our asset management planning; an evolution of the mandated Public Sector Accounting Board (PSAB) accounting practices. The property line mapping is not sufficiently accurate nor does it capture other asset details.

Sincerely,

Ryan Thoms
Manager of Emergency Services

next round of questions

I sent Ryan these two emails, Sunday evening and Monday morning:

Hello Ryan,

Thank you for the answers you have provided. Some of my questions you have not answered at all, and some of them only vaguely and obliquely. Please remember that I am not at all trying to give you a hard time. I am, on behalf of the Lasqueti community, trying to understand the reason and rationale for the proposed budget, and to understand the direction and goal for the LIVFD. I realize that this is a busy time for you, but I assure you that you are not simply providing me with your answers. I am sharing them with the Lasqueti community, and many of them also want to know what's going on, and what is planned.

What are the service compliance requirements that you are working toward? Please be specific. What are each of the requirements?

I know that training is a big item. Our Fire Department has had regular practices, though there have been pretty much no records kept of who attended each practice and what was covered in each. These have been called practices, rather than training, but they were training.

To my question about amount of money transferred to reserves, you said you are guided by policy, and only make recommendations to the board. I'd like to know what the policy says, and wonder, as I thought my question made clear, why the amount budgeted to be sent to reserves this year is so much larger than previous and following years.

A secondary question on this and other budget issues is who do you consult with on Lasqueti? Do you work with our fire chief, and other members of the fire department, or our regional director, or do you rely on policy and make whatever recommendations seem best to you and fit within the policy?

On the question of taking part of your salary from the LIVFD budget, and other fire department budgets, I understand that money budgeted and collected must be used for each service, and not used for other services. This doesn't really answer my question of when and why this change was made. Isn't a percentage taken from each budget for administration and district management? Was this amount reduced when the change was made?
Is a similar policy used for waste management and other services within PRRD, or are the fire departments the only ones to directly pay your salary as our manager/administrator?

On amounts for contingencies in the budget, you have not explained what policy or rationale or reasoning is used to fix the amounts each year. Are there any methods to fix these amounts each year? It would be reasonable to, for instance, allocate a percentage for contingency. It doesn't seem reasonable to just arbitrarily fix a different amount each year, without any apparent rhyme or reason. Please explain how a decision is made for contingency amounts each year.

You say that the budget increase for 2017 is " the result of the LIVFD need for improvements in training, equipment, and for asset management planning." Please explain what amounts have been allocated for training, equipment and asset management planning. What is meant by asset management planning? It is obvious that the large increase in budgeted amount to be transferred to reserves accounts for a large part of the budget (and therefore property tax) increase for 2017. Am I mistaken in this view?

You say that I should take up matters of public engagement with our regional director or his alternate, or the board members. Do you think that you can manage the Lasqueti fire department without the support of the Lasqueti community? Public engagement is not only for directors and board members. It is something that everyone must keep doing, or maybe begin doing.- informing the community and listening to their responses and reactions, and modifying plans and projects and budgets according to the support given and the wishes of the community.

I don't yet see that the administration fee is 8% of operating budget. I'll look again tomorrow. I'll also ask for the Community Engagement Policy, and the Asset Management Policy. If you are able to send them to me, or to direct me to them, please do. I will be very appreciative. I don't at all understand why nearly $4,000 needs to be spent this year to GPS/map PRRD assets on Lasqueti. Everyone knows what they are. I assume that you have a list of the portable assets. the fixed ones are pretty much fixed in place, and the property boundaries mapped and registered in the Land Titles office.

Thank you again for your further clarifications. Again, I realize that my questions might seem irksome. This is not my intent. I would like to community to understand how our money is to be spent on our fire department, and would like you to have some feedback on the views of the community on planning and budgeting for this service. Peter

and

Hello Ryan,

I've checked the 8% of the Operating and Maintenance subtotals for the budget. Here's what I find:

for 2015 budget, subtotal $94,887 8% is $7,591 budget amount for administration is $6,213 (just over 6.5%)
2015 actual, subtotal $57,933 8% is $4635 actual administration is still $6,213 (just over 10.7%)

for 2016 budget, subtotal is $86,977 8% is $6,958 budget amount for administration is $6,059 (6.96%)
2016 actual, subtotal $69,112 8% is $5,529 actual administration is still $6,059 (8.77%)

for 2017 budget, subtotal is $80,388 8% is $6,431 budget amount is $6,059 (7.54%)

for 2018 projection subtotal is $68,856 8% is $5,508 budgeted amount is $5,058 (7.35%)

for 2019 projection subtotal is $70,447 8% is $5,636 budgeted amount is $5,217 (7.41%)

for 2020 projection subtotal is $72,426 8% is $5,794 budgeted amount is $5,364 (7.41%)

for 2021 projection subtotal is $74,180 8% is $5,934 budgeted amount is $5,494 (7.41%)

It seems clear, unless I am miss-understanding something, that 8% for administration is only a vague target, not a set amount. As well, beginning this year LIVFD budget starts paying $5,179 towards your wages, plus an unknown increase in WCB costs, with only a roughly $450 decrease in the amount budgeted for administration. This seems like an significant shifting of regional district administration costs from the district to the fire local departments.

I strongly agree that it is prudent and wise to have a reserve fund for our fire department. It now stands at close to $100,000. I don't understand the need to add so much (over $69,000) to the reserve fund this year. What is the reason for such a large amount this year, especially since it was only $20,000 last year. It was $0 in 2015, and I have no idea what the amounts transferred in the past years were, but they have totaled nearly $80,000 not including the 2016 transfer. This huge increase is made to seem extreme by the fact that it is projected to decrease in future years, though still remain very high, at $45,000 increasing slightly each year.

Can you please tell me who decided, and helped to decide, that this was a wise and necessary increase for 2017 and future years? I realize that the board makes the decision. I'm asking who helped decide to make this recommendation to them. I'd also like to know the reasoning and rationale for this decision to increase the amounts transferred to the reserve for 2017 and future years. What is the need for these increases?

Again, I'd like to repeat that I am not trying to harass you, but merely to understand the reasoning and intent of the budget increases that are proposed. It's important that you and PRRD have the support of the community to make our fire department and our other services function, and be effective, and meet our needs.

I have requested copies of the Public Engagement Process and the Asset Management Program policies.

Thank you very much,

Peter

mapping of RD assets

Hello Ryan,

I've read the Asset Management policy, and I don't see anything there that requires, or even makes desirable, detailed professional GPS mapping of regional district assets. I understand and agree that assets need to be managed well, but don't see any need to spend $4,000 of taxpayers money to mark the assets on a map, no matter how accurate the GPS mapping is. The regional district assets are important to the community, indeed a vital part of the community, and the community is looking after them. If anything seems amiss, people will investigate and do whatever is needed to safeguard them. Marking them on a map in the regional district office won't help anything, as far as I can see.

Please let me know the detailed reasons that you think this mapping work needs to be done. Asset management planning can be done, to the mandated PSAB accounting practices, without having an expensive map that is not needed or useful.

I realize that this is only $4,000 from a fire department budget of over $150,000 and it might be considered minor and unimportant. I think that each item of the budget needs to be examined and considered, to make sure that it is needed and justified, and (as much as possible) has the support of the community, who are the taxpayers.

Thank you very much for your response. Peter

On 3/3/2017 1:21 PM, Ryan Thoms wrote:
>
> Professional fees - why budget $3,970 for GIS professional to map PRRD assets? Do the property line surveys not accurately enough let you know where these assets are? What's the need for spending $4,000 to locate them on an electronic database? Don't you know accurately enough where they are?
>
> This detailed mapping is intended to support our asset management planning; an evolution of the mandated Public Sector Accounting Board (PSAB) accounting practices. The property line mapping is not sufficiently accurate nor does it capture other asset details.
>
>

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