BFPD FY26 GFOA Budget - Flipbook - Page 88
| LONG-RANGE FINANCIAL PLANNING
Summary:
Conducting long-range financial planning is just one of the many ways in which the District
maintains fiscal responsibility and effective budgeting practices. Long-range financial planning
is informed by the District’s strategic goals and priorities, and is implemented through a variety
of financial forecasting methods. By utilizing this tool, the District is able to align its finances
with future goals—leading to an increase in effectiveness and efficiency of service delivery.
Additionally, much like the benefits gained from a Capital Improvement Plan, long-range
financial planning allows for better informed and accurate budgeting practices. Through this
form of financial planning, the District is able to identify and plan for challenges appropriately
while also promoting accountability and transparency with its residents.
Methods:
As with short-term projections, the District seeks to maintain fiscally conservative estimates
whenever possible. In the process of creating long-range financial plans, the District examines a
minimum of five years for all funds. These projections are based on trends illustrated by
historical data to formulate conservative rates of increase. Should the District have more accurate
data, for example, from a replacement schedule, then those numbers are adjusted accordingly.
Each year, during the creation of the annual budget, if future projections are known or suspected
to be different, then those updated numbers are used in the District’s projections.
General & Ambulance Funds
The General and Ambulance Funds are the two primary operating funds of the District. Based on
historical trends and current CPI, the District has implemented an initial projected growth rate of
3.25%, with a conservative decrease down to 2.5% from 2028-2031 for property tax revenue in
both the General Fund and Ambulance Fund. Due to their consistent and reliable nature, service
charges and other revenues were projected to increase at a rate of 2% and 1% respectively.
Though there are a few revenue differences between these funds—most notably ambulance
billing—projections are calculated utilizing the same method. Expenditures, like revenues, have
historically experienced a steady rate of increase for the General and Ambulance Funds. These
historical trends influence calculations and are reflected in the District’s projections. Personnel
costs represent the District’s largest expenditure in both the General and Ambulance Funds. This
is indicated through a 3% increase year-to-year. Based on volatility of inflation and historical
trend data of the remaining expenditures, percentages were calculated as 2% (Contractual), 1%
(Commodities), and 1% (Other Expenses), respectively. Per the District’s noted methods, if the
District has access to more accurate data, then the numbers in these tables are adjusted
accordingly. This is true of all fund projections. Transfers are calculated independently based on
beginning fund balance, total revenues, total expenditures, and required reserve levels.
P a g e 88 | BARTLETT FIRE PROTECTION DISTRICT | FINANCIAL SUMMARY
