Annual Budget Process Assignment

The Normal Fire Department (NFD) covers an area of 33 square miles providing advance life support and fire and rescue services from four stations.The department is a career department with the chief, assistant chief, three Battalion Chiefs, 12 lieutenants, 50 firefighter paramedics, one full-time mechanic and one secretary. The department makes 5000 total responses each year. The staffing includes two on an engine, two on an ambulance and two on a quint.Each station is assigned for firefighters on a 24 on 48-hour off system. One station has a quint and ambulance the other three stations have an engine and ambulance all are first-out assigned apparatus.

You are the fire chief of the Normal Fire Department and you are to present the 2018 budget following this criteria;

1. Explain the revenue that is required for a department to maintain its current status (this should be about two pages including your spreadsheet information).
2. Provide an explanation of the expenditures from 2017 that are necessary for the 2018 budget.In doing this you should be looking at examples of discretionary spending and non-discretionary spending.
3. For 2018, the collective bargaining unit for the (NFD) receives a 2.5% raise.Due to revenue projection concerns, the board that oversees the (NFD) would like to see the overall fire department budget for 2018 increase only 1%.
4. Indicate utilizing the budget provided where you would reduce spending to accomplish the goal of a 1% increase overall for 2018.
5. Provide this 2018 budget on a spreadsheet that can be presented with an explanation of your plan to this budget process.

(NFD) Projections

Fire & Rescue

BALANCE as of Jan 1,2017

$662,224

Estimated 2017 Revenue

$11,100,000

2017 Budget

$11,151,650

Encumbrances

$110,000

BALANCE as of Jan 1,2018

$600,000

Estimated 2018 Revenue

$11,750,000