BFPD FY26 GFOA Budget - Flipbook - Page 9
| BUDGET MESSAGE
between receiving revenues and paying expenditures, particularly capital funds. We maintain
level funding each year in these funds, knowing that the expenses will vary yearly. Thus,
establishing a surplus for several years or spending down reserves is appropriate and planned.
Funding capital expenditures with current dollars would not be fiscally prudent or responsible. In
this case, these reserves can be likened to a savings account to pre-fund expected purchases.
Additionally, these funds can be used to fund one-time emergency purchases. These fund
balance levels will fluctuate yearly based on our capital project needs. The District’s vehicle,
building, and equipment reserve funds are within or more than our fund balance targets. For
example, the District will have a 2-million-dollar vehicle purchase in the next few years. Funds
to pay for this vehicle will come from the vehicle reserve fund.
Additionally, the District maintains reserves in general and ambulance funds. These funds help
smooth out the year when revenues come in late or under projections. The Government Finance
Officer Association's (GFOA) best practice is to maintain these funds at no less than 25% of
expected revenues. Both funds are within target. General at 31% and Ambulance at 26%.
Departmental Budgets and New Initiatives
Personnel costs and benefits increased by 8.6%. The increase is mainly due to staffing changes,
salary, step increases, benefits, overtime, training, health and fitness, and testing fees. Included in
these costs is the sick time sell-back option. Staff anticipate sick time sell-back of $82,300, a
slight increase from FY25. This line item reduces future liability and reflects a more sustainable
long-term strategy, selling back time now instead of at a higher rate later. Overtime has risen,
contributing to the overall increase. In 2025 firefighter hiring slowed, which lengthened
onboarding timelines and left the District short two personnel for much of the year. Although
those vacancies have now been filled, the staffing gap contributed to higher overtime. Looking
ahead, staff anticipate two retirements in early to mid-2026. The Board has approved hiring in
advance for these planned departures, a proactive step that should help reduce overtime expenses
and forcebacks.
The District expects health insurance premiums to rise 11.4% over FY2025, driven largely by
GLP-1 medications and broader market trends. With demographic changes and new members,
the overall health insurance budget is projected to increase by about 12%. The District’s
transition to the Intergovernmental Personnel Benefit Cooperative (IPBC) has been successful
and fiscally responsible; by comparison, other providers are reporting premium increases as high
as 20%. Staff remain vigilant and confident that the District will continue to achieve year-overyear savings. Insurance costs continue to be the fastest-growing mandated expenditure.
Contractual expenditures increased by 2.7% over 2025. This line item accounts for all our
general spending to run the operations of the District. These items include fleet, SCBA, buildings
and grounds, janitorial, communications, firefighting equipment, fuel, utilities, special teams,
and general organizational expenses. Staff continue to experience the effects of high inflation
when it comes to purchasing materials.
The District anticipates another IRMA increase of 11.7% for 2026, compared with prior
increases of over 10%. Staff remain committed to strengthening safety and fostering a safety-first
P a g e 9 | BARTLETT FIRE PROTECTION DISTRICT | BUDGET MESSAGE
