Regular Fire Board Meeting - February 24, 2021

3/24/2021

District Issues and Concerns

 The district has not received written response from Arizona Legislators and Apache County Manager for additional allocations.  Cost sharing and reimbursement is being requested from B&F committee members from the fire district, the State of Arizona and/or Apache County.  The District has reached out to Arizona Representatives and has yet to receive a response. The district has reached out to the County Manager and has yet to receive a response. From of contact is through emails.  The District works closely with Apache County Treasurer (ACT) and her team. ACT is supportive to with district financial plans and is willing to provide continued support.  Ganado Fire District is considered a “Special Subdivision District” and the law states we can not carry- over any unspent funds to the next fiscal year.  What does that mean for Ganado Fire District?  We can not carryover funds into the next fiscal year and save capital projects and outlay.  The district must spend 100% of its annual budget, within its fiscal year, or the “use it or lose it” method is implied.  The downfall of not using the full annual budget.  If a Special Subdivision District DO NOT utilize the full budget by the end of the fiscal year, the unspent amount will be reduced the next fiscal year.

19

Example of Unused Revenues

 FY 2020/2021:  July 1 st - GFD Received $800,000.00 in Property Tax.  July 1 st - GFD will Receive $200,000.00 from FDAT (20% of Property Tax)  GFD Budgets $550,000.00 for Personnel & Salary and spend 100% June 30 th .  GFD Budgets $300,000.00 for Operational Expenses and Spends $275,000.00, with an remaining amount of $25,000.00 June 30 th.  GFD Budgets $50,000 for Administrative Expense and spends 100% June 30th.  GFD Budgets $100,000.00 for Capital Projects and only spends $35,000 with a remaining amount of $65,000.00 June 30 th .  June 30 th – $90,000.00 Unspent revenues for FY 20/21.  FY 2021/2022:  July 1 st – GFD Received $710,000.00 in Property Tax.  The revenues will be reduced by $90,000.00 due to funding not being needed in the prior FY.  July 1 st – GFD will receive $142,000.00 from FDAT (20% of Property Tax)  The District’s Budget will be $852,000 for FY 21/22 Vs. $1,000,000.00 from FY 20/21. Reduction of ($148,000.00) in revenues.

20

10