Next Meeting Scheduled for September 9, 2019

Kitsap 911 Board of Directors Budget Meeting

July 26, 2019 (12:00 to 4:00) Kitsap 911 (911 Carver Street Bremerton, WA)

A G E N D A

(Chair) (Chair) (Chair) (Chair) (Kirton) (Chair) (Kirton)

(Kirton/Wiley)

(Taylor) (Rogers) (Wecker) (All)

1. Call to Order2. Additions to the agenda3. Public Comment (limited to 2 minutes per speaker)4. 2020 Budget and Strategic Plan Presentation5. Closed Session to discuss Contract Negotiations6. Adoption of the 2020 Budget and Strategic Plan7. Next Board of Directors Meeting

Time Permitting8. Executive Committee Report

i. Approved various warrants, payroll and electronic fund transfers9. Staffing Report10. Finance Report11. Goals and Tech Project Report12. Good of the Order13. Adjourn (Chair)

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1

Executive Summary Kitsap 911 Board of Directors

Summary: For the six months ended June 2019 (50.00% of the year elapsed), both revenues and expenditures resumed their positive trend, as expected.

Revenues: As of June 2019, we have received approximately $5.6M (53.52%) of projected revenues, exceeding our year-to-date goal of $5.1M (49.10%) by $0.5M (4.42%).

We have received approximately $2.6M (51.89%) of the total projected sales tax revenues, exceeding our year-to-date goal of $2.4M (48.10%) by $0.2M (3.79%).

We have received approximately $1.3M (50.23%) of the total projected excise tax revenues, which was in line with our year to date goal of $1.2M (50.00%) by ~$0.1M. In the prior month, we reported that VoIP and wireless excise tax revenue was significantly lower than expectations due to two large telecommunications companies not filing their respective returns. Both have since filed their returns and we have received all related catch-up revenue.

Other revenues received were also above expectations with $1.7M (59.00%) received of the $1.5M (50.00%) expected. Fluctuations in MCT hardware purchases and the timing of related reimbursements can cause fluctuations in this category. For June 2019, timing differences related to user agency fees were the primary driver behind the fluctuations.

Additionally, the June 2019 Puget Sound Economic Forecaster noted that while certain economic indices have showed some signs of slowed growth, there is still “nothing definitive in the data that would point us in either a positive or negative direction.” The overall economic trend consensus remains positive for Washington State and Kitsap County. Consequently, we expect tax revenues to continue their positive trend for the near term.

Expected $ Actual $ Variance $Total Revenue 5.09 M 5.55 M 0.46 MSales Tax 2.36 M 2.55 M 0.19 MExcise Tax 1.25 M 1.25 M 0.01 MOther Revenues 1.48 M 1.75 M 0.27 M

Expected % Actual % Variance %Total Revenue 49.10% 53.52% 4.42%Sales Tax 48.10% 51.89% 3.79%Excise Tax 50.00% 50.23% 0.23%Other Revenues 50.00% 59.00% 9.00%

2

Expenditures: As of June 2019, we have expended approximately $6.0M (44.62%) of our total appropriation with a year-to-date goal of $7.1M (52.74%).

We have expended approximately $5.0M (49.85%) of our total operating budget (excluding debt service), which slightly less than our year-to-date goal of $5.0M (51.61%). We have expended approximately $3.8M (48.04%) of our total salaries and benefits budget, which was less than our year-to-date goal of $4.0M (50.00%). We have expended approximately $1.6M (62.74%) of the total Operating Supplies, Services, Inter-fund, and Bond budget with a goal of $2.5M (63.58%). As noted in the revenue section above, fluctuations in timing and amounts of MCT purchases can routinely cause variations in this category. For June 2019, the primary drivers were disbursement timing differences as well as fluctuations in expenditures for equipment repairs and maintenance, consulting and other professional services. Reserves: No reserves have been used year-to-date. Risks: The year-to-date trend of actual revenues exceeding budget is in-line with general economic expectations. The June 2019 issue of the Puget Sound Economic Forecaster indicated that there were mixed signals in the economy, such as a cooling in residential construction activities but steady jobs and personal income growth. Consistent with the March 2019 report, the Leading Index has signaled “not yet” when it comes to predicting a downturn in the near future. Our budget for 2019 has conservatively adopted this sentiment.

Expected $ Actual $ Variance $Total Expenditures 7.10 M 6.01 M 1.09 MOperating Salaries & Benefits 3.99 M 3.84 M 0.16 MOperating Non-Labor 1.20 M 1.18 M 0.02 MDebt Service 0.40 M 0.40 M 0.00 MCapital Projects 1.51 M 0.59 M 0.92 M

Expected % Actual % Variance %Total Expenditures 52.74% 44.62% 8.12%Operating Salaries & Benefits 50.00% 48.04% 1.96%Operating Non-Labor 57.80% 56.81% 0.99%Debt Service 90.81% 90.81% 0.01%Capital Projects 50.88% 19.94% 30.94%

$ % $ %

Sales Tax $4,915,154 2,364,078$ 48.10% $2,550,445 $2,364,709 51.89% $186,367 107.88%Telephone Excise Tax 2,497,353 1,248,677 50.00% 1,254,473 1,242,880 50.23% 5,796 100.46%Other Revenues 2,960,650 1,480,325 50.00% 1,746,804 1,213,846 59.00% 266,479 118.00%Total Revenues $10,373,157 $5,093,079 49.10% $5,551,722 $4,821,435 53.52% $458,643 109.01%

Operating LaborSalaries $5,895,189 2,947,595$ 50.00% $2,762,568 $3,132,621 46.86% ($185,027) 93.72%Payroll Taxes 558,402 279,201 50.00% 249,937 308,465 44.76% (29,264) 89.52%Benefits 1,907,334 953,667 50.00% 822,865 1,084,469 43.14% (130,802) 86.28%Budgeted Attrition (376,907) (188,454) 50.00% 0 (376,907) 0.00% 188,454 0.00%

Total Labor $7,984,018 $3,992,009 50.00% $3,835,370 $4,148,648 48.04% ($156,639) 96.08%

Operating ExpendituresSupplies $190,963 114,097$ 59.75% $130,563 $60,400 68.37% $16,466 114.43%Professional Services 472,111 248,253 52.58% 203,595 268,516 43.12% (44,658) 82.01%Communications 203,682 99,825 49.01% 115,744 87,938 56.83% 15,919 115.95%Travel 46,295 39,341 84.98% 10,869 35,426 23.48% (28,472) 27.63%Advertising 5,995 2,571 42.89% 2,952 3,043 49.24% 381 114.82%Operating Rents/Leases 222,385 91,247 41.03% 67,094 155,291 30.17% (24,153) 73.53%Insurance 113,307 91,676 80.91% 72,816 40,491 64.26% (18,860) 79.43%Utilities 124,454 58,378 46.91% 73,478 50,976 59.04% 15,100 125.87%Repairs & Maintenance 647,218 428,341 66.18% 482,361 164,857 74.53% 54,020 112.61%Miscellaneous 55,683 29,624 53.20% 22,681 33,002.00 40.73% (6,943) 76.56%

Total Non-Labor 2,082,093 1,203,354 57.80% 1,182,153 $899,940 56.78% ($21,201) 98.24%Total Operating Expenditures $10,066,111 $5,195,363 51.61% $5,017,523 $5,048,588 49.85% ($177,840) 96.58%

Debt ServiceLTGO Bond 2005 Refdg - Principal 361,175$ $361,175 100.00% $361,175 0 100.00% $0 100.00%LTGO Bond 2005 Refdg - Interest 81,380 40,690 50.00% 40,690 40,690 50.00% 0 100.00%

Total Debt Service $442,555 $401,865 90.81% $401,865 $40,690 90.81% $0 100.00%

Technology ExpendituresCapital Projects $2,871,000 1,461,600$ 50.91% $539,975 $2,331,025 18.81% ($921,625) 36.94%Labor 89,177 44,589 50.00% 50,141 39,036 56.23% 5,552 112.45%

Total Technology Expenditures $2,960,177 $1,506,189 50.88% $590,116 $2,370,061 19.94% ($916,073) 39.18%

Total Expenditures $13,468,843 $7,103,416 52.74% $6,009,504 $7,459,339 44.62% ($1,093,912) 84.60%

Kitsap 911 Monthly Financials for the Month Ended 06/30/2019

Description 2019 Annual Budget

Jan - Jun Expected 2019

Budget $

Jan - JunExpected 2019

Budget %

Jan - Jun Actual 2019

Delta to Annual Budget Delta to YTD Budget

Revenues

Expenditures

[

Rev. 2019-0530

2019- 1 Finance CIP: Implement Job Code budget/expense tracking 4/30/19 Complete+2019- 2 Mobile Device Management (MDM) 4/30/2019 Delayed2019- 3 Netmotion Client Software Updates (x2) 6/30/2019 On Track2019- 4 ACOM Replacement 6/30/2019 Wrap Up2019- 5 Multi-Factor Auth (Hardware/software solution) 2Q19 Delayed2019- 6 Text Discovery 2Q19 Delayed2019- 7 Technical Planning (Develop Initiatives for BOD Adoption) 7/31/2019 On Track2019- 8 Rapid SOS (integration with CAD) 3Q19 On Track2019- 9 Replace DC Plant at all sites except Gold and Carver 11/21/2019 On Track2019- 10 Informer for Mobile Responder 3Q19 At Risk2019- 11 Microwave System Improvements (Hansville to Lincoln Path) 3Q19 Complete+2019- 12 Fire Radio Scanner Interface 3Q19 On Track2019- 13 Equipment Room Cooling 11/30/2019 On Track2019- 14 Backup Center Phase 1 (Bldg&Current Capabilities) & 2 (begin enhancing capabilities) 12/31/2019 On Track2019- 15 ASAP to PSAP (Implementation) 4Q19 At Risk2019- 16 Support Address Correction Efforts 4Q19 On Track2019- 17 SharePoint migration 4Q19 Pending2019- 18 Eventide back-up system 12/30/19 On Track2019- 19 Training - CIP: 2019 Goal - Update Law Enforcement Dispatch Training Program 12/31/2019 On Track2019- 22 Hiring Process- CIP: 2019 Goal - Incorporate NG911 profile into hiring process 12/31/2019 On Track2019- 23 Hiring Process- CIP: 2019 Goal - Increase Lateral Recriuitment 12/31/2019 On Track2019- 24 Tower Site Upgrades- Regraveling, Landscaping, and Security 12/31/2019 On Track2019- 25 Radio Interoperability (Mason County) 4Q19 On Track2019- 26 Finance CIP: Improve Budgeting/Tracking processes for multi-year projects 12/31/19 Complete+2019- 27 Operation CIP: Implement Automatic Call Distribution (ACD) 12/31/19 On Track2019- 28 Operations CIP: Implement Secondary/Screened Queue 12/31/19 On Track2019- 29 Replace UPS Pending Pending2019- 30 ESChat 4Q19 On Track2019- 31 CAD Software Upgrade (CAD & Mobile MR6, windows 10 all CAD and MCT workstations) 2/28/2020 On Track2019- 32 Alerting 2Q20 On Track2019- 33 Training - CIP: 2019/2020 Goal - update Resiliency Training 2Q20 On Track2019- 34 CALEA reaccreditation 7/31/2020 On Track2019- 35 Training - CIP: 2020 Goal - Training Program Certification 8/31/2020 On Track2019- 36 Closest Fire Unit Dispatch 3Q20 On Track2019- 37 Data Interoperability, Phase 1 (CAD-to-Cad Interface with one other entity) 4Q20 Pending2019- 38 Secure Funding For Bainbridge Island Tower (Winslow Area) Ongoing Ongoing2019- 39 Secure Additional Frequency Licenses Ongoing Ongoing2019- 40 Virtual Desktops for Dispatch Floor Pending Pending2019- 41 Technology Monitoring System Pending Pending2019- 42 Facility AV System Pending Pending2019- 43 SUPPORT - RMS/JMS Replacement (Supprt KCIS) Pending Pending2019- 44 Operations CIP: Reduce LE Channel Radio Congestion 12/31/19 On Track

Proj/Task#

Kitsap 911 2019 Key Initiatives

Project/Initiative Due Status