NORTH BAY FIRE CONTROL DISTRICT

MASTER PLAN UPDATE

2010 – 2019

INTRODUCTION

            In June 1983, the North Bay Fire Control District (NBFCD) Board of Fire Commissioners (BFC) approved a Ten–Year Master Plan for the Fire District.  This plan has been approved by the BFC and serves as the planning document used by the BFC in developing its annual budget.  This is the bi-annual update of the Master Plan as required by NBFCD Operating Policy 40-01 and updates the revision of March 2008.  The Fire District has grown in value since its formation in 1979, when its assessed property value was $6,248,348 to its current assessed property value of $925,702,298 as of October 1, 2009 as shown in Figure 1.  During this period, the millage rates have fluctuated from a low of 0.49 in 1979, to a high of 1.86 from the years 1991 through 1995.  It was anticipated that the millage rate of 1.875 in 2004 would have to be increased over the next 5 years to finance the enhancement of the Fire District’s services to include the Advanced Life Support (ALS) Program.  The required increase in the millage rate to finance ALS would raise it above the millage cap.  Therefore, in 2004, a public education program on the benefits of ALS was implemented to gain support for a voter’s referendum to approve increasing the NBFCD’s millage cap from 2.0 mills to 3.75 mills to match the suggested cap in Florida Statute §191.009, “The Florida Uniform Independent Special Fire Control Districts Act.”  The referendum was placed on the November 2004 ballet and approved by the voters of the Fire District by a vote of 4982 yes votes and 2173 no votes.  Since the referendum vote, the highest the millage rate has gone was in 2005-2006 tax year at a 2.07 mills.  In 2007, Florida Governor Charlie Crist and the Florida Legislature initiated a property tax reform initiative.  As a result, the Board of Fire Commissioners voted to reduce the millage from a 1.80 to a 1.6819.  Keeping in line with the Governor’s proposal, in conjunction with the Florida Senate and House of Representatives, the tax and millage reduction resulted in a 7 percent cut in our funds requiring the Fire District to reduce the amount of the 2008 budget and was offset by using reserve funds in the 2008 and 2009 budget years.  An additional property tax reduction amendment was placed on the January 29, 2008 ballot and passed.  The passing of this amendment has had an additional effect on tax income for the Fire District with the additional $25,000.00 homestead exemption per the amendment, reducing our total property value for tax purposes by $160,000,000 thus reducing our Ad Valorem Tax for the past 2 years along with the decline in the housing market.

Historic Property Values

(Figure 1)

Historic Millage Rates

(Figure 2)

(Figure 2A)

            The NBFCD currently has Mutual Aid agreements with the following Fire Departments and/or Fire Districts: Baker VFD; Crestview FD; Destin FCD; Dorcas VFD; East Niceville FCD; Eglin Air Force Base/DOD FD; Florosa VFD; Fort Walton Beach FD; Holt VFD; Hurlburt Field/DOD FD; Niceville FD; North Okaloosa FCD; Mary Esther FD; Ocean City-Wright FD; Okaloosa Island FD; South Walton F&RD; Walton County FD; Valparaiso VFD; U.S. Navy Explosive Ordnance School Medical; and Okaloosa County EMS.  In addition, to the Florida Statewide Mutual Aid Agreement through Okaloosa County Emergency Management.  We have an engine committed to the South County Strike Team & Task Force, the Urban Wildland Interface Task Force and the County Alert 3 Aircraft Incident Task Force.  All of these agreements should remain in effect through 2019 and beyond.

GROWTH

            Development in the Fire District has continued at a steady rate through 2009.  Since September 11, 2001, changes to the mission of Eglin Air Force Base have had some effect upon the amount of construction within the Fire District.  However, with the elimination of the Department of Defense (DOD) Explosive Ordinance (EOD) School in Indian Head Gap, Maryland, the U.S. Navy EOD School on Range Road has become the only DOD School for this purpose and currently is being expanded to fulfill the requirements of its new additional role of training for terrorism responses. The EOD School’s operations have tripled in size and this has had a significant impact both positive and negative upon the NBFCD.  It has brought additional instructor personnel into the area that are becoming residents of the Fire District and supporting its economic growth in the construction industry as well as the local merchants.  The negative has been an increased activity at the EOD School generating increased alarm responses to the complex where we provide first alarm response for Eglin Air Force Base Fire Department as per our Mutual Aid agreement with the Department of Defense.   The possibility of expansion of the Navy E.O.D. School and the addition of several planned sites in that area including proposed Military Family Housing on White Point Road and Highway 20 may increase our response to those areas in the future.  As a result, the Fire District has sent a letter to Eglin AFB requesting property on Range Road for a new Fire Station.  This location would place the new station in the middle of the Fire District cutting response times to some of the areas of the district and making access to all areas of the district equal.   Also, due to the Base Realignment and Closure (BRAC) Commission, an estimated 3,000 military and civilian personnel are projected to populate Eglin Air Force Base, Hurlburt Field and the surrounding communities including Duke Field.  The construction for the new Special Forces facility at Duke Field has already started.  Even with the 33^rd Fighter Wing being relocated, the influx of replacement squadrons in support of the new F-35 should not change the operations of Eglin Air Force Base or our Fire District.

There are presently no plans by the Okaloosa County School Board to build on vacant property they own within the NBFCD.  The opening of the Mid-Bay Bridge in June 1993 has had a positive effect on both the residential and commercial development in the district.  However, on the negative side, the traffic on State Road 293 and Highway 20 has increased tremendously.  Phase One (1) construction of a four-lane highway connector road by-passing State Road 293 to connect the Mid-Bay Bridge to State Road 20 and Range Road has started and is expected to finish sometime in May 2011.  Phase Two (2) will take the connector road on to Highway 85 with an estimated completion date of the Spring 2014. Hopefully, this should eliminate the traffic problems in front of the Fire Station.  The construction of the connector road will also include the widening of Highway 20 from White Point Road to the County Line Road.  During this phase, access to the Seminole area may be impeded.  The construction of a parallel span of the Mid-Bay Bridge has been pushed back and is proposed to begin in 2018 with an estimated completion date of 2020.  This may increase the traffic flow through the district and the potential for increased growth within our community.

Also, the Shops at Bluewater Bay and the Premier Sports complex have proved to be a positive effect on the financial health of the NBFCD and continue to grow with several new projects in the planning stages.    Plans for a 130 unit Adult Living Facility (ALF) at the corner of White Point Road and Highway 20 is planned and should start construction in 2010.  There are also plans for an Adult Living Facility (ALF) at the corner of Lancaster and Ida Coon Circle.  Though the “Bluewater Bay” Development Regional Impact Statement (DRI) limits the maximum growth in both commercial and residential structures in some areas of the district, it does not encompass the entire Fire District.  Therefore, the additional growth in areas outside of the DRI is difficult to project; for example, areas like Lancaster Estates, Shadow Oaks, Seminole, Indigo Village, Raintree Estates, Chardonnay Estates, Skipjack Cove, Lake Pippin and the White Point Road Corridor.  With the Mid-Bay Bridge connector road approved along with the expansion of the Mid-Bay Bridge, the potential for substantial growth along that corridor is anticipated.  With the connector expansion connecting not only Highway 20, but also Range Road, and Phase Two (2), College Boulevard and Highway 85, the possibility of expansion of that area is also expected.

As stated above, the Military has unveiled proposed plans to build Military Family Housing in several areas of the county including the White Point, Highway 20 and Range Road areas.  Also with the construction of the shopping plaza in Niceville for the new Wal-Mart and the addition of several major stores and restaurants, the increase in traffic and call volume for the district can be expected to include ALS response.

RESIDENTIAL CONSTRUCTION

            The growth within the NBFCD has significantly exceeded the forecast found in the 1999 Master Plan Update.  As of August 2009, there are approximately 5,700 parcels within the NBFCD and approximately 980,000 square feet of commercial property and only light industrial property.  There are currently 241 single family residential lots in the District that could be developed.

            The majority of new residential construction will take place within the next 4 to 7 years.  After that, the building of single-family homes in the district should be drastically reduced unless the Highway 20 roadway expansions and the Mid-Bay bridge connector road create additional property that could be developed.  Of the total undeveloped properties, approximately 10 percent are investment property and may not be developed for some time.  The estimated number of available residential lots to build upon is shown by subdivision in Figures 3 and 4.  Currently, construction of single and multiple family housing should continue at a rate of 25 per year through 2011; and then decrease to approximately 20 per year for the remainder of this plan.  However, the appraised value of all properties may continue to decrease slightly barring any great downturn in the economy or significant draw down of operations at Eglin Air Force Base or changes that negatively affect the growth of the U.S. Navy’s EOD School.  However, the tax cuts in 2008-2009 years and adjustments in property values, homestead exemptions and foreclosures may also have an impact on the amount of tax money collected by the district in coming years.

(Figure 3)

(Figure 4)

            The present cost of existing homes in the NBFCD range from $49,000.00 to $2,243,000.00 with the current mean sale price of newly constructed homes being approximately $184,059.00.  If and when these 241 lots are developed, this would add approximately $44,358,219 of property value to NBFCD in residential development.  By calculating 90 percent of this figure as assessed value for planning purposes, we have taken into consideration investment property, tax delinquency and other adjustments to consider a value of $39,922,397 in FY2010 dollars, for this planning document.  However, the current decline in the Real Estate Market has some homes selling for 20 percent to 30 percent less than the property appraisers assessed values and makes it difficult to calculate future adjustments to the NBFCD’s taxable property values which have declined the past 2 years.  With the passing of the new property tax reform initiative (Amendment 1) and the downturn slide in the housing market, along with the economic downturn, the amount of tax income for the district has been reduced resulting in a higher millage rate and a budget reduction.  Amendment 1 also allowed for an additional $25,000.00 in homestead exemptions for property owners.  This has reduced our taxable value an additional $90,200,000 in FY2008-2009 and $60,000,000 in FY2009-2010 for the 3628 exempt properties identified by the Property Appraisers Office in 2009 and the housing market downturn slide.

COMMERCIAL DEVELOPMENT

            The projected short term forecast for commercial development sees the addition of approximately 250,000 square feet of development valued at approximately $150.00 per square foot in 2010 dollars.  This would represent an increase of $37,500,000 in the NBFCD’s taxable value.  As of December 2009, there are approximately 980,000 square feet of commercial property within the NBFCD.  In addition to at least 20 parcels of land in the District that could be commercially developed, with the largest being approximately 15 acres in size.  This additional undeveloped commercial property should be developed within the next 10 years at approximately 25,000 square feet per year.  This, plus the current projects already underway makes a projected total increase in commercial property value of approximately $150,000,000 in 2010 dollars, though making such projections of development can only be based on current trends and may actually vary a great deal.  This is all subject to change depending on the new Mid-Bay Bridge connector road and the Highway 20 expansion and the present state or the economy.  Property along these areas may be available for development and would have to be calculated into this plan.

GROWTH SUMMARY

            Combining the current property values of $925,702,298 with the projected growth of $150,000,000 in commercial and $39,922,397 in residential property values, the assessed property value should stabilize at a net worth of approximately $1,115,624,695 in FY2019 dollars.  However, this figure is assuming that the economic situation in the state improves in both property value and new commercial construction.

Projected Property Values

(Figure 5)

PROJECTED PROPERTY VALUE INCOME FROM GROWTH

            Through the last few years, NBFCD has had a decline in property value due to the economic downturn and the constitutional amendments. The economic future of the Fire District is uncertain at this time.    With this in mind, we will show a 2 percent decline in projected property values until 2012, zero in 2013 and then a 1–3 percent increase for the remainder of the plan as shown in Figure 5.  However, if the growth of residential and commercial property continues, then income in new residential construction should continue through 2012 and new commercial construction through 2019.  We anticipate that at that time, all available undeveloped property will have been depleted unless the highway expansion and the new connector roads result in an increase in available property in the district.  Due to a lag time of up to 12 months from the time a Certificate of Occupancy is issued on new construction until the first taxes are distributed would delay any increase in residential tax income until FY2011-2012 tax collection year  and commercial construction taxes beyond the term of this plan.  With the Mid-Bay Bridge connector road, the growth of undeveloped property along that area may increase.  Also, with the rapid development in growth in the surrounding areas, the addition of high rise structures in our district is a possibility and would greatly increase our total property value.  As of March 22, 2010 a developer had petitioned the Okaloosa County Planning Commission to build a 4 story, 43 unit apartment complex on Olde Post Road.

SERVICES ENHANCEMENT

            The planned advancement in the Fire Districts delivery of services to include Advance Life Support (ALS) medical response (“Paramedics”) to respond to its customer’s medical needs is now a reality with the successful passing of a referendum to raise the current millage cap beyond 2.0 mills.  This cap was adopted at the time the Fire District was formed in 1983.  The increase in the millage cap will allow for the funding of the NBFCD’s ALS program as well as continue to allow the Fire District to fund its current operations at a time that further economic growth becomes limited by the amount of available property for new construction within the Fire District.   The increase in the millage cap to 3.75 should bring the NBFCD in line with Florida Statute §191.00 “The Independent Special Fire Control District Act of 1997” and be sufficient to address both issues of Funding and Growth.  As stated above, the projection of the NBFCD’s property value growth is reflected below.  These figures do not include any new construction data.

Estimated Potential Growth

CAREER PERSONNEL

            The paid staffing of the NBFCD is one (1) Fire Chief, one (1) Assistant Fire Chief of Operations, one (1) Fire Marshal/Inspector, one (1) Medical/Training Division Chief, three (3) Captains, three (3) Lieutenants, nine (9) Firefighters, one (1) Administrative Assistant, and one (1) Part-time (EVT) Emergency Vehicle Technician.  There are no plans of increasing the strength of the staff at this time.  We currently have ten (10) Paramedics that are divided between the three shifts.

PERSONNEL COSTS

            Personnel costs are shown in Figure 6.  Costs are shown in this year dollars and assume no change in FICA and Social Security rate percentages, an annual inflation rate of 3 percent and an average of 2 percent longevity rise annually and a retirement cost of approximately 16.4 percent.  However, insurance rates for Health, Medical, Dental, Vision, and Life along with Workers’ Compensation have risen in the last few years, some as much as 5–10 percent in a single year.  These items must be monitored closely to ensure the NBFCD’s ability to keep up with their impact on the Fire District.

There are currently eighteen (18) members of the staff enrolled in the State 175 Retirement Plan and only one (1) funded position in the NBFCD’s former Equitable Retirement Plan.  Under the State 175 Retirement Plan, each participating member must contribute 5 percent of their annual salary and NBFCD and the State of Florida will contribute the remainder, which is currently 19 percent of the employee’s base salary.  The NBFCD has committed to fund the State 175 Retirement Plan based on the annual actuarial report of the plan, which is currently at 16.4 percent.  NBFCD also funds the Equitable Retirement Program.  All new employees are required to join and contribute to the NBFCD 175 Retirement Plan.  A Board of elected plan participants and citizens appointed by the Board of Fire Commissioners administers the 175 Retirement Plan.  For planning purposes, we will show a 3 percent increase per year for overall personnel costs as depicted in Figure 6.

Personnel Costs

(Figure 6)

OPERATING COSTS

            The projected operating costs of the NBFCD are shown in Figure 7 below.  These columns include the following costs: training, operating supplies (consumables), fuels and lubricants, utilities, auditing, uniforms, office supplies, maintenance of equipment, vehicles and building. These figures are based upon historical data, the projected number of employees and the number of pieces of emergency apparatus and equipment.  These figures will change if any of the input variables are changed.  For example, if the purchase of a Fire Apparatus is delayed, then all data from that point forward must be adjusted for this delay.  The figures below are shown at an anticipated 7.5 percent increase per year.

Operating Costs

(Figure 7)

CAPITAL OUTLAY

            The plans for capital purchases for the Fire District are shown in Figure 8.  The latest piece of fire apparatus (Tower-8) was ordered in 2006 and delivered in 2007.  The service life and replacement schedule of the plan for capital purchases for the NBFCD along with the service life of our current fleet of vehicles is shown below.

Pumper 8 – 1999 Emergency One, Cyclone II CAFS Engine; in service until 2015

Engine 8 – 1995 Emergency One Cyclone I Engine; in service until 2012

Tower 8 – 2007 Pierce 100 foot platform, in service until 2023

Chief 8 – 2005 Chevy Tahoe; in service until 2014.

A/C 8 – 2005 Chevy 2500; in service until 2016.

Inspection 8 – 2007 Chevy 2500; in service until 2017

Battalion 8 – 2008 Chevy 2500 pick up; in service until 2019

Capital Equipment Leases & Purchases & Building Fund

(Figure 8)

Building Improvement and Maintenance

            Due to the condition of the current Fire Station building, several major repairs and renovations need to be accomplished.  Also funding for a new Fire Station building needs to be planned whether it is built on the existing property or at an alternate location.  Currently the NBFCD has a request in to Eglin Air Force Base for property on Range Road.  Depending on several factors including the Military Housing Privatization Initiative (MHPI), which has several tracts of land on Range Road, Highway 20 and the White Point Recreation area as possible sites, there is a possibility that property on Range Road may be available to NBFCD to build a new Fire Station.   The possibility of building a new Fire Station on our existing property is also an option that would need logistical planning for continued operations during construction.  The following estimates are for major repairs that need to be accomplished and/or planned for the existing Fire Station building.

1.      Apparatus Bay floor replaced and drains/lift station                $100,000.00

2.      Parking ramp                                                                           $  80,000.00

3.      Roof replacement, back half                                                   $  20,000.00

4.      Vehicle exhaust system (carbon monoxide removal)               $  35,000.00

5.      Kitchen (refurbish)                                                                  $    9,000.00

6.      Upstairs bathroom (refurbish)                                                  $    7,000.00

7.      Replace the Bay Door operating systems                                             $    8,000.00

8.      Replace Bay lighting                                                                $  12,000.00

9.      Replace outside lighting                                                                       $    5,000.00

The above repair of the existing Fire Station will have to be budgeted for if the decision is made to repair this facility instead of replacing it.

Proposed Budgetary Breakdown for FY2010-2019

Capital Outlay

Note:  Lease Purchase payment for Tower-8 is $44,506.50 per year.  Tower payoff will be approximately $133,519.50 in April 2010, if it is decided to pay it off early.

CAPITAL INVESTMENT

            It is the intent of the NBFCD to maintain the Capital Equipment Escrow account for the purpose of reducing the financial impact of the scheduled replacement of worn out and antiquated apparatus owned by the Fire District.  The need to do this is driven by the requirements of the Insurance Industry as well as the NBFCD’s commitment to provide the highest level of service to our community.  By using this plan, the NBFCD is able to reduce the amount of funds that are borrowed for this purpose, thereby reducing the amount of interest that it would generally pay in the purchase of such big dollar items as a $1,000,000.00 replacement for Tower-8.  This fund also includes a savings for the replacement of the existing Fire Station at a rate of $50,000.00 per year.  The funding for this account should remain as indicated in Figure 9.

Capital Outlay Investment Account

(Figure 9)

            The above Capital Investment Funds are in addition to the proceeds from the sale of apparatus disposed of by the Fire District and includes the building fund.  For example, Engine 8 should sell for between $30,000.00 and $45,000.00 at the time of its replacement or used as a trade-in.  At the end of ten (10) years, the building fund should be $450,000.00 and if used, will only leave $258,000.00 in savings for operating the Fire District from October 1^st to January 1^st.

NOTE:  An increase in reserved funds should be considered and not allowed to fall below a pre-determined amount of $500,000 with the addition of the building fund of $450,000 for a total of $950,000 by the end of ten (10) years.  An increase in the amount projected needs to be updated at the next revision.

DEBT SERVICES

(A)    Our current debt liability is the amount of accrued Annual & Sick Leave that the Staff has accrued.

(B)    The annual payments to the Okaloosa County Property Appraiser and Tax Collector.

(C)    Uncollectible Taxes should remain at approximately seven to ten (7–10) percent of the annual budget for the life of the plan.

(D)    The NBFCD’s future liability will be the payment for Tower 8 that started in 2008.  This has created an annual lease payment of approximately $45,000.00 and will continue thru 2012 unless it is paid off early.  Payoff amount is estimated at $89,013.00.

COST / REVENUE RECAPITULATION

            Projected annual cost of this plan starts with $2,134,000.00 in 2010 and will increase to approximately $2,932,000.00 in FY2019.  In computing this data the following assumptions were made:

1.    Personnel costs will increase approximately 3 percent per year during the life of this plan

2.    The cost of replacement for Engine 8 will be approximately $450,000.00 in 2012

3.    Inspection 8 was replaced in 2007 with a (2007 Chevy Truck 2500) and again in 2017

4.    Chief 8 (2005 Chevy Tahoe) will be replaced in 2014

5.    Battalion 8 (2000 Chevy 1500) was replaced in 2009 and again in 2019

6.    A/C 8 (2005 Chevy 2500) will be replaced in 2016

7.    Replacement of Pumper 8 will be approximately $450,000.00 in 2015

8.    Replacement of the NBFCD Emergency Generator was in 2007 and should last until 2022

9.    The replacement of all personnel protective equipment will take place at least two (2) times during the life of the plan

10. The replacement of our self contained breathing apparatus (SCBA’s) will need to be added in the next five (5) years at a cost of approximately $125,000.00

11.  Operating expenses will increase approximately 7.5 percent annually during the life of the plan

12.  This process does not include the loss of any structure or apparatus due to disasters natural or manmade.

CONCLUSION

            This plan is intended to provide a general guide to be used by the Board of Fire Commissioners in determining future actions and purchases for the Fire District.  A review and update of the plan should be scheduled for the Spring 2012.  This plan exceeds the five (5) year planning requirements for the NBFCD outlined in Florida Statute § 191.00, “The Florida Independent Special Fire Control District Act of 1997.”

Figure 10 – Depicts the estimated annual budget for the NBFCD.

Figure 11 – Predicts the estimated annual millage rate for the NBFCD.

Figure 12 – Shows a tabulation of all expenses by category for the NBFCD.

** This document has been developed only as a guide for management purposes **

Estimated Annual Budget

(Figure 10)

Estimated Millage Rate

(Figure 11)

Annual Expenses by Category

(Figure 12)

Appendix A

Staffing Options

Option 1

Fire Inspector / Public Education Specialist

The Addition of another Fire Safety Inspector / Public Education Specialist to handle the increased workload created by the addition of commercial businesses and the increase of public education events is anticipated.