October, 2013 President Hickey and Board of Trustees: It is our pleasure to present the 2014 Tentative Budget for

your review. This budget has been compiled with consideration of the Districts mission while managing and controlling costs. This budget document has been developed to serve as the financial plan for the upcoming year. The foundation of the financial plan continues to be the mission of the District preserving life and property while valuing full accountability to each other and the people we serve. This mission is carried out daily by District employees who respond (and support the response) to over 8,000 emergency calls each year; accordingly, personnel costs are the largest component of District expenditures. The costs to achieve the Districts mission are primarily offset by property tax revenue. Increases in property tax revenue are limited by tax rate ceilings and property tax caps. Other sources of revenue including ambulance service fees, dispatch service fees, and fire prevention fees also offset District expenditures. Under direction from the Board of Trustees, we worked to produce this 2014 Tentative Budget giving priority to programs and services that provide the greatest benefit to District residents. The 2014 Tentative Budget represents the efforts of District staff in reviewing their operations, streamlining them when possible and investing in improvements to daily operations to benefit the safety of District residents and employees. The Boards involvement ensures that District goals are clear and provides an opportunity for communication of services and expectations. We sincerely appreciate the efforts of all who have assisted with the preparation of the 2014 Tentative Budget. Based on these collaborative efforts, we respectfully submit this 2014 Tentative Budget for your review and consideration. Respectfully Submitted,

_______________________________ Ken Brucki Fire Chief

_____________________________ Kerry Sullivan Finance Director

Community Profile The District is located in southwest Cook County, approximately 22 miles from Downtown Chicago and serves the Villages of Orland Park and Orland Hills, as well as the unincorporated areas of Orland Township. The District covers approximately 33 square miles and has a population of approximately 75,000. The number of households within the District is approximately 25,000. The daytime population is higher due to the heavy retail concentration of Orland Park and Orland Hills. The area is easily accessible by OHare and Midway Airports, several interstate highways and Metras commuter rail system. The Districts Tax Year 2012 equalized assessed valuation (EAV) was $2,378,592,213, a 7.8% decrease from the Districts 2011 EAV. The decrease was mostly caused by a decrease in Cook Countys equalization factor. The Cook County Assessors Office, who reassesses property every three years, reassessed property in South Cook County, including the District, in Tax Year 2011. The District has a diverse economic base; approximately 69% of the Districts EAV is related to residential development, 26% is related to commercial development, and 5% is related to industrial development. Major employers within the District include Orland School District #135, the Village of Orland Park, Panduit Corporation, Consolidated High School District #230, Jewel/Osco, Darvin Furniture, and Palos Primary Care. The District is the location for much retail development, including Orland Square Mall, Orland Park Place Mall, Orland Crossings, and Orland Towne Center, along with numerous other retail centers. District Facilities The District currently operates six fire stations, a vehicle maintenance facility, a regional training campus, and an administration/dispatch headquarters building. The fire stations were strategically built to minimize response times based on projected populations. District Personnel The mission of the Districts staff is to preserve life and property while valuing full accoun tability to each other and the people we serve. The District has an elected, five-member Board of Trustees. The Fire Chief, who is appointed by the Board of Trustees, is responsible for the daily operations and management of the District. At a minimum, the District staffs four engine companies, two truck companies, and five ambulance crews daily. To accomplish this response capability, the District employs 117 full-time firefighting personnel including 6 Chief Officers, 33 Lieutenants, 30 Engineers and 48 Firefighters. Of the firefighting personnel, 109 are certified paramedics. These personnel provide a variety of services to the residents of the District including fire suppression, emergency medical services, and rescue services. In addition to these core services, the District has personnel who have been specially trained to respond to hazardous materials incidents, underwater rescue incidents, and technical rescue incidents. The District employs 24 full-time non-sworn employees who support the Districts sworn personnel and residents in the areas of dispatch, fire prevention, public education, administration, building maintenance and fleet maintenance. In addition, part-time employees are utilized to augment support operations.

Orland Fire Protection District A map of the District follows:

2014 Budget Process The 2014 budget process is summarized below. District personnel prepare budget requests Initial budget review meetings are conducted with Department heads, Finance Director and Fire Chief Board of Trustees review proposed budget Publication of notice of display of tentative 2014 Budget and Appropriation Ordinance and Notice of the Public Hearing on the 2014 Budget and Appropriation Ordinance Display of tentative 2014 Budget and Appropriation Ordinance Adoption of a Finding regarding the estimated aggregate amount of taxes needed to be raised in the next year Execution of Certificate of Estimate of Revenue Public hearing on 2014 Budget and Appropriation Ordinance Adoption of 2014 Budget and Appropriation Ordinance Publication of Proposed Property Tax Levy Notice Publication of 2014 Budget and Appropriation Ordinance Public hearing on proposed 2013 Tax Levy Ordinance Filing of certified and sealed copy of 2014 Budget and Appropriation Ordinance and the Estimate of Revenue with the Cook County Clerk June / July 2013

September 2013 October 2013

October 2013 October 2013

November 2013 November 2013 November 2013 November 2013 December 2013 December 2013 December 2013

December 2013

Revenue Revenue for all funds for 2012 Actual, 2013 Budget and 2014 Budget is summarized below:

2012 Actual Property taxes Other taxes Ambulance fees Dispatch services Communication fees Fire Prevention fees Grant proceeds Salary reimbursement Insurance contributions Interest Finance Proceeds Other revenue Total $26,611,660 106,044 1,951,756 625,764 214,306 9,525 164,790 181,046 390,815 47,769 26,715,000 91,127 $57,109,602

2013 Budget $26,204,546 111,000 1,800,000 674,577 184,716 10,000 -0185,900 498,153 50,000 -0212,600 $29,931,492

2014 Budget $26,403,256 103,200 2,100,000 630,439 192,208 10,000 -0-0948,498 50,000 -015,000 $30,452,601

Property taxes represent 86.7% of the 2014 budgeted revenue. The District levies property taxes for the purposes of the following funds Corporate, Tort Immunity, Bonds and Interest, Illinois Municipal Retirement Fund, Pension, Ambulance Service, Audit, Emergency Rescue, and Social Security.

Historical Property Tax Rates by Tax Year are summarized below.

1.15 1.127 1.10 1.05 1.00 0.95 0.90 0.879 0.85 0.80 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 R R R R 0.851 0.837 1.0622 1.0189 0.9778 0.9584 0.9556 0.9715 0.9741 0.951 1.05

R = Reassessment All the Districts property tax levies except the Bond and Interest levy and the portion of the Pension Fund levy associated with Public Act 93-0689 are subject to PTELL, commonly known as property tax caps. In general, the annual growth in property tax revenue permitted under PTELL is the lesser of 5% or the percentage increase in the Consumer Price Index (CPI) during the calendar year preceding the levy year. The CPI for property taxes for the 2014 budget is 1.7%. Taxes can also be increased due to new construction within the District. Due to economic conditions, new construction within the District had slowed. The equalized assessed valuation (EAV) of new construction historically has represented 2-3% of the Districts total EAV. In Tax Years 2011 and 2012, new construction represented 0.3% of the Districts total EAV. In 2012, building permits in the Village of Orland Park have been issued at a rate not seen since 2005. While this is merely a projection, it is a positive sign of economic growth. In addition to property tax caps, there are tax rate ceilings on the Districts Corporate Fund, Ambulance Fund, and Rescue Fund. A decrease in the Districts EAV causes the tax rates to increase; accordingly, tax rate ceilings are more likely applied. The 2014 budget property tax calculation continues the Boards election to abate property taxes of approximately $1,300,000 per year.

Estimated 2014 budgeted property tax revenue, by fund, is summarized below.

4% 1% 12% 37%
General Fund

17%

Ambulance Fund Pension Fund Tort Fund Rescue Fund Other

29%
Other taxes include personal property replacement taxes and foreign fire insurance. Replacement taxes are paid by businesses to replace revenue that was lost by local governments when they lost their power to impose personal property taxes on businesses in the 1970s. Foreign fire insurance payments are made by every out-of-state insurance corporation for insurance premiums paid within the District. The foreign fire insurance fund is managed by an independent Board of Trustees, but is included in the Districts overall budget. Ambulance fees represent 6.9% of the 2014 budgeted revenue. The District bills non-residents and the insurance companies of residents for ambulance service. Dispatch and communication services revenue includes revenue from dispatch services, tower space leases and alarm monitoring and represents approximately 2.7% of the 2014 budget revenue. Currently, the District provides dispatching services for Calumet City and Oak Forest, alarm monitoring services for Tyco, and leases tower space to a number of cell phone companies. Other revenue includes employee and retiree contributions toward health insurance, interest earnings and other miscellaneous sources of revenue.

Expenditures Expenditures for all funds for 2012 Actual, 2013 Budget and 2014 Budget are summarized as follows: 2012 Actual Wages Clothing Benefits Pension Funding Continuing Education Supplies Repairs and Maintenance Utilities and Fuel Professional Services Property, Liability & Workers Comp Insurance Bad Debt Software Testing Debt Equipment Other Total $56,103,958 $29,035,256 $30,531,622 $16,106,117 224,558 4,211,777 30,157,004 76,483 641,501 543,177 274,246 559,849 2013 Budget $15,530,502 125,599 4,328,591 4,217,477 152,909 436,616 736,440 360,005 287,000 2014 Budget $16,685,049 174,900 4,546,566 4,505,615 127,681 399,721 602,590 361,500 350,000

1,181,120 131,912 830 12,950 1,058,850 265,700 657,884

1,115,532 150,000 7,500 29,500 1,071,600 205,000 280,985

1,129,100 150,000 13,500 45,000 1,115,400 -0325,000

Estimated 2014 expenditures by major category are summarized as follows.

5%

4% 3%

Personnel Supplies, Repairs, Utilities, and Fuel Debt Other

88%

Personnel expenditures, including compensation, clothing, health and life insurance, payroll taxes, pension contributions, and workers compensation premiums represent 88% of the Districts 2014 budgeted expenditures. Wage increases estimated in the 2014 budget are based on labor agreements with Orland Professional Firefighters Local 2754 and IBEW 134. Benefit expenditures include health and life insurance, payroll taxes, and medical exams. Pension contributions for members of the Orland Firefighter Pension Fund are based on an actuarial analysis prepared at the direction of the Pension Funds Board of Trustees. Pension contributions for non-sworn employees are based on requirements calculated by the Illinois Municipal Retirement Fund. Principal and interest payments are being made on taxable debt certificates issued in December, 2012, in the amount of $26,715,000 to pay the actuarial unfunded liabilities of the Districts pension funds. Supplies include expendable items as well as small equipment. Expendable supplies include nonexchangeable patient care supplies, public education supplies, station supplies, vehicle maintenance parts, and office supplies. Small equipment purchases include non-exchangeable patient care supplies, replacement cots, emergency medical equipment, replacement specialty team equipment, computer equipment, opticom equipment, and safety equipment. Repairs and maintenance expenditures include repairs and maintenance of the Districts facilities and equipment. Professional services expenditures include legal services and audit services.

Insurance expenditures include general property and liability insurance as well as workers compensation insurance. Bad debt expense recognizes uncollectible ambulance service fees for non-residents. Debt expenditures are related to interest and principal payments on the Series 2007 Bonds. The District received an Aa2 rating from Moodys Investors Service for the Series 2007 Bond issue. The Districts rating has since been upgraded to Aa1 by Moodys Investors Service. Other expenditures include utilities, fuel, software, testing, and other miscellaneous costs of the District. The proposed 2014 Budget and Appropriation Ordinance follows.

STATE OF ILLINOIS COUNTY OF COOK

) ) SS ) SECRETARY'S CERTIFICATE

I, Jayne Schirmacher, the duly qualified and acting Secretary of the Board of Trustees of the Orland Fire Protection District, Cook County, Illinois, do hereby certify that the attached hereto is a true and correct copy of an Ordinance entitled: ORDINANCE NO. ___________ BUDGET ORDINANCE AND ANNUAL APPROPRIATIONS OF ORLAND FIRE PROTECTION DISTRICT, COOK COUNTY, ILLINOIS FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014

which said Ordinance was adopted by the Board of Trustees at a meeting held on the ___th day of November, 2013. I do further certify that a quorum of said Board of Trustees was present at said meeting, and that the Board complied with all requirements of the Illinois Open Meetings Act as well as any local ordinance requirements for the holding of meetings. IN WITNESS WHEREOF, I have hereunto set my hand this ___th day of November, 2013.

________________________ Secretary, Board of Trustees Orland Fire Protection District

ORDINANCE NUMBER __________ BUDGET ORDINANCE AND ANNUAL APPROPRIATIONS OF ORLAND FIRE PROTECTION DISTRICT, COOK COUNTY, ILLINOIS, FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014

WHEREAS, the Board of Trustees of the Orland Fire Protection District, Cook County, Illinois, caused to be prepared in tentative form a budget for public inspection, and WHEREAS, a public hearing on the Budget and Appropriation Ordinance was held on November __, 2013, and notice of the hearing was given at least thirty days prior thereto as required by law, and all other legal requirements have been met. NOW, THEREFORE, Be it Ordained by the Board of Trustees of the Orland Fire Protection District as follows: Section 1: The fiscal year of this Fire Protection District is hereby fixed to begin

January 1, 2014 and end December 31, 2014. Section 2: The following describes the estimated fund balances at the beginning of the

fiscal year, an estimate of revenue expected to be received during the fiscal year, estimate of the expenditures contemplated for the fiscal year, estimated appropriations, and an estimate of fund balances at the end of the fiscal year.

Corporate Fund
Estimated Fund Balance, Beginning of Year Estimated Revenue: Insurance Contributions $ 414,821 Fire Prevention 10,941 Public Education 2,177 Information Technology 907 Communications Services 279,563 Vehicle Maintenance 2,450 Foreign Fire Insurance 66,200 Training 1,633 Property Taxes 14,152,065 Replacement Taxes 12,327 Interest 16,658 Other 5,068 Total 14,964,810 Subtotal Estimated Expenditures: Sworn Personnel Wages $ 6,398,432 Clothing 77,697 Benefits 1,663,403 Small Tools 18,500 Hose 12,800 SCBA 10,078 Arson 32,340 Fire Prevention 205,712 Public Education 108,949 Computers 97,867 Maps 10,885 Dispatch 332,572 Communications 32,515 Opticom 5,000 Station Supplies 10,761 Buildings and Grounds 153,865 Vehicle Maintenance 218,880 2% Fund 66,200 Training 235,588 Pension 2,897,199 Debt Certificates 1,500,960 Administration 361,761 Public Information 19,323 Testing 45,000 Honor Guard 11,081 Seasonal Assistance 20,000 Total $14,547,368 $ 7,622,611

22,587,421 Appropriation $7,358,197 89,352 1,912,913 21,275 14,720 11,590 37,191 236,569 125,291 112,547 12,518 382,458 37,392 5,750 12,375 176,945 251,712 76,130 270,926 3,331,779 1,726,104 416,025 22,222 51,750 12,743 23,000

Transfer to Debt Service Estimated Fund Balance, End of Year

1,115,400 $ 6,924,653

Audit Fund Estimated Fund Balance, Beginning of Year Estimated Revenue: Property Taxes Total Subtotal Estimated Expenditures: Administration Total $ 8,725

$ 30,000 30,000 38,725 $ 30,000 30,000 Appropriation 34,500

Estimated Fund Balance, End of Year

8,725

Tort Fund Estimated Fund Balance, Beginning of Year Estimated Revenue: Benefits Fire Prevention Fleet Maintenance Training Property Taxes Total Subtotal Estimated Expenditures: Sworn Personnel Clothing Benefits Fire Prevention Juvenile Firesetters Opticom Fleet Maintenance Training Fitness Safety Administration Insurance Total Appropriation 1,296,982 15,749 332,680 59,142 4,348 11,500 85,545 180,618 23,259 25,630 97,029 1,298,465 744,110

72,143 2,735 817 1,089 3,079,533 3,156,317 3,900,427

1,127,811 13,695 289,287 51,428 3,781 10,000 74,387 157,059 20,225 22,287 84,373 1,129,100 2,983,433

Estimated Fund Balance, End of Year

$ 916,994

Debt Service Fund Estimated Fund Balance, Beginning of Year Estimated Expenditures: Debt payments Total Transfer from General Fund Estimated Fund Balance, End of Year $ Appropriation 1,282,710 $ -0-

$1,115,400 1,115,400

1,115,400 -0-

IMRF Fund Estimated Fund Balance, Beginning of Year Estimated Revenue: Property Taxes Total Subtotal Estimated Expenditures: Administration Total $ 79,774

$ 141,786 141,786 221,560 $ 141,786 141,786 Appropriation 163,054

Estimated Fund Balance, End of Year

79,774

Capital Reserve Fund Estimated Fund Balance, Beginning of Year Estimated Expenditures: Training Total $ 11,250 11,250 Appropriation 12,938 $4,049,230

Estimated Fund Balance, End of Year

$4,049,230

Ambulance Service Fund Estimated Fund Balance, Beginning of Year Estimated Revenue: Insurance Contributions EMS Public Education Information Technology Communication Services Fleet Maintenance Property Taxes Replacement Taxes Interest Other Total Subtotal Estimated Expenditures: Sworn Personnel Wages Clothing Health Insurance SCBA EMS Public Education Computers Maps Dispatch Communications Opticom Buildings and Grounds Station Supplies Vehicle Maintenance Administration Public Information Total $ 4,743,318

387,767 2,110,000 544 1,645 507,282 4,409 7,665,920 22,367 30,226 9,196 10,739,356 15,482,674 5,972,674 72,527 1,554,920 17,284 304,474 28,240 177,583 19,749 603,465 59,002 5,000 279,196 19,526 393,984 926,428 35,062 10,469,114 Appropriation 6,868,575 83,406 1,788,158 19,877 350,145 32,476 204,220 22,711 693,985 67,852 5,750 321,075 22,455 453,082 1,065,392 40,321

Estimated Fund Balance, End of Year

$5,013,560

Social Security Fund Estimated Fund Balance, Beginning of Year Estimated Revenue: Property Taxes Total Subtotal Estimated Expenditures: FICA & Medicare Total $ 321,844 321,844 358,793 $ 321,844 321,844 Appropriation 370,120 $ 36,949

Estimated Fund Balance, End of Year

36,949

Emergency Rescue Fund Estimated Fund Balance, Beginning of Year Estimated Revenue: Insurance Contributions Information Technology Vehicle Maintenance Communications Property Taxes Replacement Taxes Other Interest Total Subtotal Estimated Expenditures: Sworn Personnel Wages Clothing Benefits SCBA Hazardous Materials Underwater Rescue Tactical Rescue Atmospheric Monitoring Computers Maps Dispatch Communications Buildings and Grounds Station Supplies Vehicle Maintenance Administration Public Information Total Estimated Fund Balance, End of Year $ 493,502

27,054 170 490 52,298 1,012,104 2,306 948 3,116 1,098,486 1,591,988 464,451 5,640 108,483 1,885 31,013 22,432 61,840 15,506 18,308 2,036 62,213 6,083 25,670 2,013 36,926 43,304 3,614 911,417 Appropriation 534,119 6,486 124,755 2,167 35,665 25,797 71,116 17,831 21,054 2,341 71,545 6,995 29,520 2,315 42,465 49,800 4,156

$ 680,571

Section 3: The Boards attorney is authorized to file a certified copy of this Ordinance with the Cook County Clerk. Section 4: The Secretary is hereby authorized to file the budget and appropriations ordinance pursuant to law. Section 5: This Ordinance shall be in full force and effect from and after its passage, approval and publication as provided by law. Adopted this ___th day of November, 2013, by the following roll call vote: AYES: NAYS: ABSENT:

________________________ President, Board of Trustees Orland Fire Protection District

ATTEST:

________________________ Secretary, Board of Trustees Orland Fire Protection District