Central Coventry Fire DistrictCentral Coventry Fire District. FY2011-2012 Actual New FY2012-2013 Revenue ... Dec. 31, 2011 Tax Assessment Residential $1,507,310,583 Commercial $ 263,894,530

February 11, 2013

Central Coventry Fire District

February 11, 2013

Public Meeting

Richard J. Land, Esq.

Special Master

Coventry Fire Districts

Summary of Progress

1. Compiled Financial Information To Complete The FY2012-2013 Budget

2. Arranged For Tax Sales And Collected Past Due Taxes

3. Met With Legislators To Discuss Progress In The 3. Met With Legislators To Discuss Progress In The District And Propose New Legislation

4. Negotiated Modifications To The Firefighters' CBA

5. Prepared And Posted A FY2012-2013 Budget

6. Planning

7. Other Efforts7. Other Efforts

8. Alternatives to Approved Budget

1. Old Budget

FY2011-2012 Budget�Approved Budget Resulted In A $995,480 Deficit

� Included An Over Assessment Of $217,285,200$217,285,200

�Did Not Pay Back Accrued Debt

�Based On Impermissible Tiered Tax Rate

2. Tax Sales and Past Due Taxes

Tax Sales and Past Due Taxes�Filed Petition To Authorize Tax Sales For 2010 And Prior�Approx. $ 300,000 Outstanding�Collected $72,795.04 Without Sale�Collected $72,795.04 Without Sale�Process Is Ongoing For Balance

�Will Be Filing Another Petition For FY2011-2012

3. Legislative Changes

Status of Legislative Changes

�Four Meetings With Legislators

�Proposed Legislation For:�Tiered Tax Rates (50% Cap)�Tiered Tax Rates (50% Cap)�Supplemental Tax�Annual Audit

4. Firefighters CBA

Modification of CBA�Negotiated Modifications to CBA:

�Salary Freeze

�Health Insurance Plan

�Increasing Deductible And Co-share�Increasing Deductible And Co-share

�Health Savings Accounts

�Longevity Reduction

�PEHP Freeze/Reduction

�Reduction In Obligation To Pay Education And Outside Training for Contract Term

�Eliminate Vision Payment for Contract Term�Eliminate Shift Differential Increases�Reduce Clothing Allowance�Set Maximum For Sick-leave And Buy Back�Set Maximum For Sick-leave And Buy Back�Set Maximum For Comp Time �Merge Two High-level Positions

�Ongoing Discussions With Firefighters

Savings From Negotiations� Estimated Savings FY2012-2013

�$154k

� Estimated Savings FY2013-2014

�$327k�$327k

� Estimated Savings FY2014-2015

�$404k

� Further Savings Resulting From Long-term Changes To CBA

5. New Budget�http://www.crfllp.com

Receivership Assets�Receivership Assets

�Central Coventry Fire District

FY2011-2012 Actual New FY2012-2013

Revenue

Tax Revenue 4,672,391 5,721,332

Federal Revenue – Safer 244,483 244,483

All Other Revenue 706,647 716,900

Total Revenue 5,623,521 6,682,715

Expenses

5,383,170Personnel 5,603,982

5,383,170(one time expenses)

Administrative 50,748108,377

(legal/audit)

Operational 714,488 881,286

Equipment Debt Service 249,783 208,909

Total Expense 6,619,001 6,581,742

Surplus/Deficit (995,480) 100,973

6. Taxes and Assessments

Commerce Park AssessmentCommerce Park AssessmentCommerce Park AssessmentCommerce Park Assessment

�CCFD FY2010 Assessment $226,867,140�Town FY2010 Assessment $9,581,940

($217,285,200)($217,285,200)

�Effect: CCFD Total Commercial Assessment Is Reduced By $217,285,200

Dec. 31, 2009 Tax Assessment

�Residential $1,834,514,549

�Commercial $509,968,847

�Tangible $41,755,424�Tangible $41,755,424

�Adj. Total $2,162,953,620

�OVERSTATED BY $217,285,200

�LOST REVENUE OF $780,000

Dec. 31, 2011 Tax Assessment

�Residential $1,507,310,583

�Commercial $263,894,530

�Tangible $41,949,243�Tangible $41,949,243

�Total $1,813,154,356

�*Adjusted for Error (34%)

Comparisons

Old Rate$ 100,000.00

$ 1.82 $ 182.00

$ 125,000.00

$ 1.82 $ 227.50 $ 1.82 $ 227.50

$ 150,000.00

$ 1.82 $ 273.00

$ 250,000.00

$ 1.82 $ 455.00

Old Rate - Balanced$ 100,000.00

$ 2.44 $ 244.00

$ 125,000.00

$ 2.44 $ 305.00 $ 2.44 $ 305.00

$ 150,000.00

$ 2.44 $ 366.00

$ 250,000.00

$ 2.44 $ 610.00

Old Rate – Single Tier$ 100,000.00

$ 2.76 $ 276.00

$ 125,000.00

$ 2.76 $ 345.00 $ 2.76 $ 345.00

$ 150,000.00

$ 2.76 $ 414.00

$ 250,000.00

$ 2.76 $ 690.00

New Rate – New Value$ 82,200.00

$ 3.15 $ 258.93

$ 102,750.00

$ 3.15 $ 323.66 $ 3.15 $ 323.66

$ 123,300.00

$ 3.15 $ 388.40

$ 205,500.00

$ 3.15 $ 647.33

Residential Comparison

$400.00

$500.00

$600.00

$700.00

$800.00

1.82

2.44

$-

$100.00

$200.00

$300.00

$400.00

$100,000 $125,000 $150,000 $250,000

2.44

2.76

3.15

Commercial Comparison

$800.00

$1,000.00

$1,200.00

$1,400.00

3.62

4.85

$-

$200.00

$400.00

$600.00

$100,000 $125,000 $150,000 $250,000

4.85

2.76

3.15

6. Planning

Planning�Legislative Changes�5 Year +/- Plan To Pay Back Debt Using Commercial Base And Stabilizing ResidentialResidential

�Court Is Looking For A Fresh Start �Succession Planning And Phasing Out Special Master

7. Other Efforts

Other Efforts

�Volunteer Firefighter Study Committee

�Charter Review Committee

�Engage Community/Town To DiscussAlternativesTo Fire District SystemAlternativesTo Fire District System

8. Alternatives to Approved

Budget

Alternatives to Approved Budget

�Shut Down – days to weeks

�Liquidation

�Bankruptcy is not an optionBankruptcy is not an option

�Voiding CBA is not an option

4 Minute Response without CCFD

VOTING

Ballot Machine Vote

Do You Approve The BudgetPresented By The Special MasterPresented By The Special MasterTonight Which Requires A Tax LevyOfApproximately $5,721,332?

Non-Binding Referenda

Referendum ADo you support a tiered (i.e. multipleclassification) tax system through whichcommercial property, residential propertyand tangible property may be taxed atand tangible property may be taxed atdifferent rates?

_____ YES _____NO

Referendum BDo you support the District issuingsupplemental tax bills, only after voterapproval at a public meeting, to helpaddress unanticipated District expenses?address unanticipated District expenses?

_____ YES _____NO