Western Lakes Fire District’s Fire Board or Commission

JOINT SPECIAL COMMON COUNCIL & WESTERN LAKES FIRE DISTRICT MEETING Wednesday, May 12, 2021 @ 6:00 PM Oconomowoc Arts Center 641 E. Forest Street NOTICE: If a person with a disability requires that the meeting be accessible or that materials at the meeting be in an accessible format, call the City Clerk's office at least 48 hours in advance to request adequate accommodations. Tel: 569-2186 Agenda: 1. Call to order - Fire Board Members and Municipal Owners 2. Proof of Notice of Meeting 3. Pledge of Allegiance 4. Presentation of Life Saving Awards 5. Public Comment 6. Approval of Minutes from Joint Owner’s Meeting – September 8, 2020 7. Presentation - 2020 Annual Financial Audit - CliftonLarsonAllen LLP 8. Discussion – 2020 Year in Review 9. Discussion – 2021 Year to Date Update 10. Present – 5 Year Capital Improvement Plan 11. Set date for Capital Budget Meeting (June 9th and June 23rd) 12. Set date for Fall 2021 Budget Meeting (September 8th) 13. Adjournment ______________________________ Diane Coenen, City Clerk City of Oconomowoc S:\Committees - Commissions\WLFD Fire Board\Agendas\2021\Joint CC-WLFD FireBrd Adga 5-12-21  WESTERN LAKES FIRE DISTRICT 1400 Oconomowoc Parkway, Oconomowoc, WI 53066 Phone: 262-567-8282 Email: info@westernlakesfd.org WESTERN LAKES FIRE DISTRICT Notice of Meeting The Western Lakes Fire District’s Fire Board will meet at the Oconomowoc High School – Art Center, located at 641 E. Forest Street, Oconomowoc Wisconsin on Wednesday, May 12, 2021 beginning at 6:00 P.M. to address the following agenda: 1. Call to order a. Fire Board b. Municipal Boards 2. Proof of Notice of meeting for Western Lakes Fire District 3. Pledge of Allegiance 4. Presentation of Life Saving Awards 5. Public Comment 6. Approval of minutes from Joint Owners Meeting – a. September 8, 2020 Joint Owners Meeting 7. Presentation – 2020 Annual Financial Audit - CliftonLarsonAllen LLP 8. Discussion – 2020 Year in Review 9. Discussion – 2021 Year to Date Update 10. Present – 5 Year Capital Improvement Plan 11. Future Meetings a. Capital Budget Meeting (June 9th and June 23rd) b. Fall 2021 Budget Meeting (September 8th) 12. Adjournment It is possible that members of and possibly a quorum of members of other governmental bodies may be in attendance at the above stated meeting to gather information. No action will be taken by any governmental body at the above-stated meeting other than the governmental body specifically referred to above in this notice. Pabst Station: 1400 Oconomowoc Parkway; Oconomowoc, WI 53066 – Fax: 262-569-6430 Dousman Station: 107 S. Main Street; Dousman, WI 53118 - Fax: 262-431-4812 Oconomowoc Station: 212 S. Concord Road; Oconomowoc, WI 53066 – Fax: 262-569-3297 Sullivan Station: 912 Front Street; Sullivan, WI 53178 – Fax: 262-593-8123 Okauchee Station: W349 N5060 Shady Ln., Okauchee, WI 53069 Stone Bank Station: W355 N7107 Stone Bank Rd., Oconomowoc, WI 53066  Western Lakes Fire Board Joint Owners Meeting September 8 2020 Call to Order  George Morris called the meeting to order at 6:30 p.m. Board members present were George Morris, Jeff Roemer, Kent Lorenz, Bill Riemenschneider, Mike Tompkins, Lisa Mellone and Jimi Hall and Administrative Assistant Michael Krug.  The meeting was held at the Oconomowoc Arts Center.  Each of the municipalities called their meetings to order. Proof of Notice  Mike Krug announced that the district notice was posted September 1st to the district web site, newspapers and at all 6 stations. Pledge of Allegiance  Each of the municipal heads led the group in the Pledge of Allegiance. Approval of Minutes  A motion was made by Oconomowoc and seconded by Summit to approve the minutes of the July 22, 2020 meeting. Motion carried. Presentation – Life Saving Awards  Chief Bowen stated that a Live Saving award is given to the crew that responds to a call for a pulseless / non-breathing patient, where after our care, the patient was revived, transported and was able to leave the hospital. Four awards were given. Presentation – District Operation  Chief Bowen went through a PowerPoint presentation on events over the past six months. Discussion / Action – 2021 Operational Budget  Chief Bowen explained that multiple versions of the 2021 operational budget were created and that the one being presented is what the Fire Board recommends to help with our staffing shortages. Chief Bowen went through the budget, which includes converting part-time positions with nine full-time positions. We are not eliminating part-time employees, but are using full-time positions to fill open part-time shifts on our schedule with full-time employees. In addition, we will be hiring one full-time HR manager to assist with the HR duties and to replace Mike Krug, who will be retiring at the end of the year.  At 8:10 pm, each of the municipal boards broke off to discuss the budget. At 8:30 pm, the group reconvened.  President Morris asked each of the municipal heads for a report of what occurred in the municipal meetings. o The City of Oconomowoc approved the 2021 Operational Budget as presented. o The Village of Summit, Village of Dousman and town of Ottawa will act at their next board meeting. Discussion / Action – 2021 Capital Budget  Chief Bowen stated that each of the municipalities already approved the 2021 Capital Budget, but the group did not vote on the budget. September 8, 2020 Joint Owners Meetring.docx Page 1 of 2   A motion was made by Dousman and seconded by Oconomowoc to approve the 2021 Capital Budget. Motion carried. Presentation / Discussion – Emergency Management  Chief Bowen proposed that all of our municipal owners and contract partners work to create one Emergency Management plan. The group gave direction for Chief Bowen to proceed with that plan. Presentation / Discussion – Fire Code Ordinance  Chief Bowen stated that each municipality currently has their own Fire Code Ordinance. He is recommending having a common Ordinance with an appendix for anomalies for each municipality. The group gave direction for Chief Bowen to proceed with that plan Adjournment  At 8:50 pm, a motion was made by Dousman and seconded by Oconomowoc to adjourn. Motion carried  The spring owners meeting will be Wednesday May 5th, 2021 at 6:30 pm. September 8, 2020 Joint Owners Meetring.docx Page 2 of 2  Memorandum TO: FIRE BOARD FROM: BRADLEY R. BOWEN, CHIEF SUBJECT: 2020 AUDIT MANAGEMENT COMMUNICATIONS DATE: WEDNESDAY, MAY 12, 2021 CC: MUNICIPAL ELECTED OFFICIALS Fire Board and Municipal Elected Officials, On behalf of the Western Lakes Fire District administrative team I am proud to present to you the 2020 Annual Audit which was performed by CliftonLarsonAllen LLP. In 2020 we experienced an unprecedented year along with the rest of the World. The year began with the expansion of the District’s service area to include the entire Town of Oconomowoc for Fire/EMS, portions of the Town of Merton for Fire/EMS, and the entire Town of Ashippun for EMS. With this expansion the District also hired over 50 new part-time and paid-on-call employees, added two fire stations with one in Okauchee and the other in Stone Bank. With this expansion the District also had an increase in its overall assets including vehicles and equipment. The District also completed an administrative organizational restructuring with the Deputy and Division Chiefs being split into operational bureaus, and three shift captains being promoted to supervise each shift. The District experienced a rollercoaster of a year as a result of the Worldwide COVID-19 Pandemic. This resulted in significantly increased workload for the District’s staff, as well as several operational and policy changes with regards to the District’s operations. Throughout the pandemic and 2020 staff worked to control expenses within the budget as several additional expenses due to the pandemic arose. Staff and the Fire Board reviewed the revenues and expenses on a monthly basis to project the end of the year funding of the District. One of the biggest variables the District encountered was a decrease in call volume of 33% for several months which directly affected the District’s revenues. However, after projecting a budget deficit of more than $200,000 in October of 2020 things changes to allow the District to end the year with a surplus. This is directly related to the spirit of cooperation from the Municipalities served by the District being able to submit on the District’s behalf to the Routes to Recovery program for expenses related to the pandemic response, as well as EMS wages. Several Municipalities were able to provide additional funds due to the eligible expenses in the program. In addition to the grants, state funding assistance, and federal funding assistance the last three months the District saw a significant increase in call volume as the pandemic peaked. One of the biggest challenges for the District and EMS Providers throughout the State continues to be sustainable funding. The continuously declining reimbursement rates from Medicare, Medicaid, and other Healthcare providers continues to cause funding needs to maintain these essential services. I have created this summary to provide you with an explanation of the 2020 budget as it correlates to the audit and budget. The District currently has a stable fund balance which allows for cash flow, and excess fund balance will be used in future years to offset capital purchases and decrease the impact on the tax levy. Pabst Station: 1400 Oconomowoc Parkway; Oconomowoc, WI 53066 – Fax: 262-569-6430 Dousman Station: 107 S. Main Street; Dousman, WI 53118 - Fax: 262-431-4812 Oconomowoc Station: 212 S. Concord Road; Oconomowoc, WI 53066 – Fax: 262-569-3297 Sullivan Station: 912 Front Street; Sullivan, WI 53178 – Fax: 262-593-8123 Okauchee Station: W349 N5060 Shady Lane; Okauchee, WI 53069 – Fax: 262 567-0503 Stone Bank Station: W335 N7107 Stone Bank Road; Oconomowoc, WI 53066 – Fax: 262.966.2831  Revenues: The District exceeded the 2020 revenue projections by $475,112. There are a variety of factors that affected this and aided in the District’s ability to not only meet by exceed its revenues in 2020 during a year that had significant changes and unknowns for many. • Federal and State Grants – as a result of the COVID-19 Pandemic the District received a total of $279,312 in funding through a variety of funding sources. This was unbudgeted revenue, that provided the District with the funding to purchase supplies and equipment to respond to the pandemic. Funding was also provided through the CARES Act to assist with the decline in EMS revenues, related to payments from insurance providers of patients with COVID-19. The Wisconsin Routes to Recovery funding was a large portion of this portion of funds. The District provided all 11 municipalities with eligible expenses through the program for reimbursement. Many Municipalities were able to submit for additional WLFD expenses through the program. • Fire Insurance Dues – had a surplus as a result of the growth in municipalities. When the budget was created the District hadn’t received all of its 2% due payment for the year and didn’t anticipate the increase it had received in 2019. In addition to this the District received a transfer from Stone Bank of remaining 2% dues in their fund balance at the end of 2019 which was transferred to WLFD. • Payments from Governments – this section includes the final payment from the City of Oconomowoc into the fund balance. As the fund balance grows it will be used to offset capital expenditures and controlling the impact of these expenses on the tax levy. • Ambulance Fees – the ambulance revenues are a direct correlation of the District’s call volume. It takes approximately 180 days to obtain payment from insurance companies, which results in a lag of obtaining the actual incomes. The call volume in 2020 fluctuated significantly due to the pandemic. Between March and July the call volume and revenues decreased by 33% before returning to average volumes in late July. Between October and the end of the year the call volume surged, resulting in increased revenues at the end of the year. o The mandatory write-offs and reduced revenue from Medicare and Medicaid continue to cause a substantial decrease in achievable revenues EMS incidents. • Highway Billing – there was significantly reduced due to a significant reduction in vehicle accidents during the stay at home order. Overall in 2020, the District saw a general reduction in car accident throughout the year resulting in the decreased revenues. • Fire Inspection Fees – this reduced for 2020 as a result of the pandemic as several businesses were not able to be inspected as a result of closing and changes in use. • Miscellaneous –Interest income was decreased for 2020 as the interest rates dropped substantially. The miscellaneous funding for special events was significantly decreased due to many special events being cancelled for the year. These decreases were offset by the sale of assets, which was increased as the District reduced the number of fire engines maintained in the District, and one of the engines sold for significantly more money than anticipated. Pabst Station: 1400 Oconomowoc Parkway; Oconomowoc, WI 53066 – Fax: 262-569-6430 Dousman Station: 107 S. Main Street; Dousman, WI 53118 - Fax: 262-431-4812 Oconomowoc Station: 212 S. Concord Road; Oconomowoc, WI 53066 – Fax: 262-569-3297 Sullivan Station: 912 Front Street; Sullivan, WI 53178 – Fax: 262-593-8123 Okauchee Station: W349 N5060 Shady Lane; Okauchee, WI 53069 – Fax: 262 567-0503 Stone Bank Station: W335 N7107 Stone Bank Road; Oconomowoc, WI 53066 – Fax: 262.966.2831  Expenditures: The expenditures for the District exceeded the budget by $174,720 as a result of a number of factors with the biggest being response to the global pandemic. Overall staff had cut more than $75,000 from expenses in response to the pandemic including conferences, some outside training, and other non-essential items to help with balancing the budget in 2020. This was made up by the increased revenues from services and grants and allowed the District to end the year with a surplus. Due to the various line items in the budget these communications will highlight the operational categories. • Professional Services – these exceeded the budget line item due to an increase in accounting service fees assisting with application to grants for COVID, and other expenses related to the pandemic. • Insurance – these expenses were lower than expected as a result of the District’s workman’s compensation MOD factor decreasing, and overall decreased insurance costs from the League of Municipalities. • Collections and Billing Services – these expenses were lower as a result of the District lowering the percentage it pays the billing vendor for these services. • Buildings and Grounds – these exceeded the budget due to various equipment needs and safety precautions put in place to ensure employees had a safe working environment during the pandemic. • Administration – various items were reduced in this portion of the budget to assist with balancing the budget as a result of the increased expenses with COVID and lost revenues. Training, Conferences, and Fire Prevention were the areas with the most significant reductions. However, in August the District received a $35,000 grant for leadership training which had to be spend by September. This caused the original savings to be seen as a result of increased revenues. • Fire Operations – came in lower than budgeted, with the reduction in call volume the fuel costs were the most noticeable cause for this reduction. In addition to fuel costs, equipment costs were lower due to a number of items not being available for purchase due to the pandemic. • EMS Operations – the costs for EMS operations were higher than projected in 2020 with a direct correlation to the pandemic. This section includes a special line item for supplies and equipment required to respond to the pandemic in the amount of $64,589. • Compensation – was increased in 2020 by $108,013 as a result of increased overtime costs due to employees out with COVID-19 and a number of employees not being able to work for the District due to their full-time employment. Due to being short positions the District paid overtime which also increased the wages for the year. The number of part-time employees that met the WRS retirement benefit threshold increased as the employees that were able to work ended up working more causing this to increase. There was a savings on health insurance due to two employees opting out of insurance and providing proof of insurance to the District, they received a stipend in lieu of insurance per policy. There was also two employees that opted for single health insurance instead of family. Pabst Station: 1400 Oconomowoc Parkway; Oconomowoc, WI 53066 – Fax: 262-569-6430 Dousman Station: 107 S. Main Street; Dousman, WI 53118 - Fax: 262-431-4812 Oconomowoc Station: 212 S. Concord Road; Oconomowoc, WI 53066 – Fax: 262-569-3297 Sullivan Station: 912 Front Street; Sullivan, WI 53178 – Fax: 262-593-8123 Okauchee Station: W349 N5060 Shady Lane; Okauchee, WI 53069 – Fax: 262 567-0503 Stone Bank Station: W335 N7107 Stone Bank Road; Oconomowoc, WI 53066 – Fax: 262.966.2831  • Dispatch and Radio – these costs were lower than budgeted due to switching all of the MDC’s and cellular devices to Firstnet. This saved on connection and data fees the District was paying with other vendors. • Capital – was reduced in 2020 as the rehab unit project was not able to be completed due to delays in obtaining equipment due to the pandemic. This will be carried over into 2021 as a result. Fund Balance: Currently the fund balance for the District is in excess for the recommended 20%. The excess fund balance will be used to decrease peaks in the future capital budgets over the next five years. Controlling the peaks of these years assist with the overall levy and cost to the tax payers. The fund balance is the District’s reserve fund which allows for cash flow to occur at the end of the year as available funds decrease through the budget process, and available funds from the next budget become available. The fund balance also is the safety net when unanticipated instances occur that could not be forecasted such as the COVID-19 Pandemic. The pandemic has resulted in decreased revenues and increased expenses that were not anticipated. In addition to the fund balance the District maintains a $200,000 line of credit at no cost in the event emergency funds are required for instances such as the current pandemic. Before accessing the line of credit, the Fire Chief and Fire Board would call to order a special meeting with the Municipalities before drawing on this line of credit per policy. I am extremely proud of the hard work and dedication exhibited by the employees of the District. Their efforts directly affect the budget. The management team works hard to control expenses, review and negotiate contracts, and achieve the revenues outlined in the budget. This is a team effort and everyone works together to accomplish this task. Respectfully, Bradley R. Bowen Bradley R. Bowen – Chief Pabst Station: 1400 Oconomowoc Parkway; Oconomowoc, WI 53066 – Fax: 262-569-6430 Dousman Station: 107 S. Main Street; Dousman, WI 53118 - Fax: 262-431-4812 Oconomowoc Station: 212 S. Concord Road; Oconomowoc, WI 53066 – Fax: 262-569-3297 Sullivan Station: 912 Front Street; Sullivan, WI 53178 – Fax: 262-593-8123 Okauchee Station: W349 N5060 Shady Lane; Okauchee, WI 53069 – Fax: 262 567-0503 Stone Bank Station: W335 N7107 Stone Bank Road; Oconomowoc, WI 53066 – Fax: 262.966.2831