Kitsap 911 Board of Directors Meeting September 3, 2019 (2:00 to 3:00) Norm Dicks Building A G E N D A

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1 Kitsap 911 Board of Directors Meeting September 3, 2019 (2:00 to 3:00) Norm Dicks Building A G E N D A 1. Call to Order (Ellingson) 2. Additions to the agenda (Ellingson) 3. Public Comment (limited to 2 minutes per speaker) (Ellingson) 4. Adoption of Minutes (06/04/19 and 07/26/19) (Ellingson) 5. Closed Session to discuss Contract Negotiations (Kirton) 6. Adoption of Resolution , the 2020 Budget and Svc Fees (Kirton) 7. Adoption of amended Stabilization Fund Policy (Kirton) 8. Good of the Order (All) 9. Adjourn. (Ellingson) Next Meeting Scheduled for December 3, 2019

2 Kitsap 911 Board of Directors Meeting of June 4, 2019 ATTENDING: Board of Directors: Robert Gelder- Kitsap County Commissioner Ed Wolfe-Kitsap County Commissioner Sheriff Gary Simpson- Kitsap County Kol Medina- City of Bainbridge Island Mayor Rob Putaansuu- City of Port Orchard Mayor Greg Wheeler-City of Bremerton Mayor (Vice Chair) Becky Erickson- City of Poulsbo Mayor Dusty Wiley-Fire Commissioner Bob Muhleman- Fire Commissioner Leslie Daugs- City of Bremerton Council Member Stephen Neupert- NKFR Fire Commissioner Staff: Richard Kirton- Executive Director Maria Jameson-Owens-Deputy Director Steve Rogers-Financial Manager Brandon Wecker-Technician Service Manager Stephanie Browning- Administrative Specialist Rachael Taylor-Human Resources Manager Absent: Charlotte Garrido, Kitsap County Commissioner Eric Younger-City of Bremerton Council Member David Ellingson-Fire Commissioner (Chair) Guests: Chief Steve Wright- South Kitsap Fire and Rescue

3 Call to Order: Chair Greg Wheeler called the meeting to order at 2:01 pm. Additional Agenda Items: None Public Comment: None Adoption of the minutes: Director Gary Simpson made a motion to adopt the minutes from March 5, 2019 Motion was seconded by Director Leslie Daugs. Motion carried. Executive Committee Report Executive Director Kirton reported the Executive Committee has been meeting regularly. These are some highlighted items: *Approved various warrants, payrolls, and electronic fund transfers *Ratified and approved various contracts *Adopted Contract K with South Kitsap School District *Discussed the 911 Outage *Election of Chair Dusty Wiley and Vice Chair David Ellingson of Executive Committee Staffing Report Human Resource Manager Rachael Taylor reported there are currently ten vacant positions on the dispatch floor and Kitsap 911 is in the second hiring of the year. The recruitment started with 269 applicants and now narrowed down to 19 in interviews this week. The plan is to hire 6-8 with a start date in August. There are eight call receivers in training that were hired in February, which includes two laterals. The law enforcement dispatch training will begin on June 17 with three employees attending. There will be another class as early as September and anticipate five people in attendance. A System Engineer was hired and is relocating from Louisiana. The Telecommunicator position will open again on July 22 with a hire date of November 4. Each year a survey is conducted with all employee as a part of succession planning and includes discussing their plans for their careers at Kitsap 911. This includes the time frame they might leave or if interested in promotion. As a result, in the next 1-3 years Kitsap 911 will lose approximately 15 people. In year s 24 people are eligible and considering retirement. Kitsap 911 is incorporating these numbers in the hiring plan as well as a succession plan for key positions within the agency. As a part of the budget next month, there will be a recommendation of how to better position for this anticipated turn over. During the last Board Meeting there was a question regarding the jump in sick leave due to the 2018 WA paid sick leave law. Some research was completed and found Kitsap 911 is on the upper end of sick leave use but is not the highest as Kitsap County reported Correction was up 86% and Facility up 90%. Finance Report (Documents provided) Finance Manager Steve Rogers reported with the preliminary April 2019 financial report. Both revenues and expenditures have continued to trend favorably and been in line or beaten the Kitsap 911 Board of Directors June 4, 2018

4 budget. 3.7 million of projected revenues have been received due to timing fluctuations. There are no significant fluctuation noted. The remaining payments from fire for the First Due contract were received during the month. Expenditures preformed similarly well related to budget, as of April 2019 we have expended $3.9M if total appropriations with a year-to-date goal of $4.4M. Fluctuations noted during the period were primarily related to repairs and maintenance to building, timing of operating lease and expenditures, and computer equipment purchases. Kitsap 911 has filed their 2018 annual report with the State Auditor Office and expect the next step to be scheduled in September or October. Kitsap 911 is hosting a finance roundtable tomorrow with a number of different finance managers in the county and surrounding areas to pool resources and insights to get a better handle on forecasting. The Executive Director of Economy from the State of Washington has been invited to present. Goals and Tech Project Report * Netmotion Client Software Update-The project updates the VPN software on all the MCT to the latest version. Currently in the process of doing back to back updates all this week. Kitsap 911 is working with Bremerton Police and the County to deploy and then will work with the other agencies. On track to be completed by the due date. * Acom Replacement- This project will upgrade the equipment the dispatchers use to access the radio network. Recently deployed fixes for larger issues and testing the fixed. Technicians are still working with the vender on smaller issues. * Text Discovery- This captures all work related text messages on employees personal cell phones. Currently, involved with a live demo and hope to have a recommendation to Executive Management by the end of this week. * Replace DC Plants at all sites except Gold and Carver- This replaced the old UPS batteries at the tower sites. The batteries supply interim power at the sites if the power goes out until the generator starts. The plan has been completed for the site order Equipment Room Cooling- This projects replaced the HVAC system with one capable of redundancy support due to increase workload. The RFP has been posted and completed the vendor walk through. The RFP closed on 06/13 * Backup Center- The owner needed to go back to the structural engineers to have some additional analysis completed for the permit. This work is still in progress. * ESChat- This project allows to monitor and respond to radios via a mobile phone. Currently there are demos taking place. Kitsap 911 Board of Directors June 4, 2018

5 * Closest Unit Dispatch- This project changes the way fire units are recommended for calls so they are chosen by their AVL location instead of a set station order. Bainbridge Island Fire has been delayed due to Station 22 not being open yet. Once Station22 is open for a week then Bainbridge Island will move forward with their 90-day pilot. 911 Outage Updates Executive Director Richard Kirton has received an informal explanation on what caused the outage. In telephone communications protocols there is a layer called SS7, which is the protocol that send a signal. When you pick up the phone and dial a number the local phone central office in your area patches you to a neighbor s phone. If you are making a long distance call, the central office patches you to another central office that patches to a national office and on and on. In one phone call, there could be patches that are all done electronic. In the outage CenturyLink larger network the protocol was messed up, when people would try to call it would pass the call through or say no resources. The FCC and UTC have jurisdiction on CenturyLink and those discussions are ongoing on how to prevent this. The main reason for the outage was the time during the outage we were in the middle of transferring from CenturyLink and COMTEC. When the lines were full, there was no ability to route around them. That problem has been resolved as all agencies in WA are now on COMTEC. Within the COMTEC network, there is better ability to reroute the calls and manage that. Closed Session to discuss Contract Negotiations Start Time 2:31 End Time 2:53 Good of the Order Director Erickson asked if the RPF has been issued for ILEADS. Sheriff Simpson said the agency representatives were given the process and as of today the RFP should have gone out. Director Gelder said the County issue last week a partial ban of fireworks and the hope is to minimize the cause of any ground fires and call volume. Director Daugs wanted to tell staff thank you as you are hitting summer season and hitting 4 th of July. We are thinking of you during these busy times as well as fire and police. Director Wheeler said this weekend himself and Sheriff Simpson attended a baseball game. It was a neat day. Executive Director Kirton stated for the sixth out of 8 years Kitsap 911 employee has won an International award. Supervisor Jenn Andrews was selected APCO International Supervisor of the Year. The meeting was adjourned at 14:57 PM. The next scheduled meeting of the Kitsap 911 Board of Directors is July 26, 2019 at 12:00 at Kitsap 911 Facility. Kitsap 911 Board of Directors June 4, 2018

6 Kitsap 911 Board of Directors Meeting of July 26, 2019 ATTENDING: Board of Directors: Charlotte Garrido, Kitsap County Commissioner Robert Gelder- Kitsap County Commissioner Sheriff Gary Simpson- Kitsap County Rob Putaansuu- City of Port Orchard Mayor Greg Wheeler-City of Bremerton Mayor (Vice Chair) David Ellingson-Fire Commissioner (Chair) Dusty Wiley-Fire Commissioner Bob Muhleman- Fire Commissioner Leslie Daugs- City of Bremerton Council Member Staff: Richard Kirton- Executive Director Steve Rogers-Financial Manager Brandon Wecker-Technician Service Manager Absent: Ed Wolfe-Kitsap County Commissioner Becky Erickson- City of Poulsbo Mayor Kol Medina- City of Bainbridge Island Mayor Eric Younger-City of Bremerton Council Member Guests: Chief Steve Wright- South Kitsap Fire and Rescue Call to Order: Chair David Ellingson called the meeting to order at 12:00 pm.

7 Additional Agenda Items: None Public Comment: None 2020 Budget and Strategic Plan Presentation Director Kirton presented the 2020 proposed budget. Below are highlighted topics discussed: Operations Appropriations: Overall 2.3% increase going from 10.5 million to 10.7 million *Regular Salaries-Labor costs have increased 5% increase. A large portion of this is due to step increases and some allocated funds for the contract that is currently in negotiations. *Supplies and Services-4.1% increase, it is going from 2.8 million to 2.86 *Overtime- 6% increase of 25K *Annual Leave Payout- There are retirements this year so anticipating paying annual leave out. *Extra Help- Hoping to use extra help to supplement the dispatch with on call employees *Miscellaneous Pay- this is reclassifications within the general ledger *Medical-There will be a 3.3% increase, there was not a rate increase for the plan but looking back at 2019 budget our vacant positions were budgeted at the lowest tier. Steve looked at the demographic of the employees and budgeted based on that. This is the same for dental and life. *Computer Software- Fluctuation is based on replacement cycle and First Due. There is an offset surcharge for First Due on the revenue side. *Insurance- 23K increase *IS Charges- Last few years discussions have been taking place with Kitsap County IS and GIS charges. This budget Kitsap 911 is proposing to bring the GIS services in house, there is an anticipation of transitional costs. There will be some mutual benefits as well. Director Ellingson asked what percentage of the building Department of Emergency Management (DEM) accounts for. Mr. Kirton said there are two basic factors that are applied to DEM charges. The worksheets splits out consumables and building maintenance, some line items are split 75/25 and some 67/33, this is based on an arrangement worked out when the agencies moved into the building. Technical Enhancements and Other Non-Operational Projects *System Technician- This year Mr. Kirton is proposing to move this position into the Operating Budget. *MCT NPRV- These are MCT equipment purchases that are defined as none primary vehicles and there is an item in revenue showing these charges from the users. The equipment is bought through Kitsap 911. *Server Virtualization and Cyber Security- These are enhancements to the network security the new data systems engineer put together a business case analysis with a seven-year cost analysis and the savings was significant. * Election costs for Sales Tax (SB5272)-Working with the Fire Chiefs and Law Chiefs so we can time our recommendation on when to go out for this. Conversations will start at the next few Board meetings. Kitsap 911 Board of Directors July 26, 2018

8 Revenues *Sales Tax-2020 budget included the 2018 actuals; this is based on looking at the growth factor and talking with the County and City budget departments regarding trends they are seeing with their sales taxes. Kitsap 911 does not expect sales tax to go down the economy is still apparently stable but do not expect much growth. *Telephone Excise Tax- Proposing a modest increase over the 2019 budget, continuing to see a decrease in wireline and VOIP customers, some of this is offset by wireless and prepaid. *Tower Leases- This increase is based on rate increases with existing customers. *Service Fees-Kitsap 911 is proposing a 284K or 13% increase to the base, this keeps the budget structural balanced so operating revenues match operating expenditures. The base user fees have not been increased since Director Ellingson asked how Olympic Ambulance is being billed for Bremerton. Mr. Kirton stated we do not dispatch for them, they use the radio to let us know they are in route to a Bremerton call. Kitsap 911 does not track their units. If the Board wanted to explore charging for the radio fees, we could look into that. The Board of Directors took a 10-minute break *Service fee alternatives-mr. Kirton presented two alternatives, alternative one would increase the user fees and the contracted minimum of 4.5%. This would reduce the ending fund balance by 200K. Alternative two keeps the base user fees and the contract fees status quo and reduces the ending fund balance by 280K and part of the reduction would have to come from the stabilization fund. This would put the stabilization fund at 16% of operation expenditures. Of the two alternatives Mr. Kirton would choose option one. Director Wheeler asked if the stabilization fund is to make sure we have operating expenses for a recession without reducing services. Mr. Kirton said it provides adequate monthly cash flow regardless of fluctuation or late payment of posting of revenues. Kitsap 911 has not had to dip into it for that purpose. It also minimizes the need for sudden decreases to service level or midyear increases to service fees by providing reasonable funding for which the agency can foresee circumstances such as revenue shortfall, disasters or equipment failure and allows the agency to take grant opportunity s that occur out of the regular budget cycle. The policy also states for every five years to evaluate wither the 17% is the right level, review is set for Director Gelder said the proposed budget has the fees go over 14.4% increase, alternative one is a 5.4% increase and alternative 2 is a 2% increase. The revenues do not go up 14% a year or 5% and would be much more in line with 2%. Director Ellingson stated he has been thinking about this since the Executive Committee Meeting and he feels option two is the best. Director Simpson said that alternative two is what he will push for. Director Wheeler said he would vote for alternative two as he is setting money aside for ILEADS Kitsap 911 Board of Directors July 26, 2018

9 and it will be a large amount. Mr. Kirton said with alternative two we will not be able to balance the budget with the reserve without dipping into the stabilization fund. Closed Session to discuss Contract Negotiations Adoption of the 2020 Budget and Strategic Plan Director Greg Wheeler made a motion to adopt the 2020 budget with alternative two user service fees. Director Gelder would like to come back with option two and see the impact to the reserves and the stabilization. Would also think it would be helpful to see the staffing changes that are drivers. Executive Session for 10 minutes Executive Session extended for additional 10 minutes No action taken Director Gelder said he is hesitant to adopt the budget, as there are three Directors that have not seen all the information. Director Greg Wheeler made a motion to adopt the 2020 budget with alternative two on service fees. Motion was seconded by Director Leslie Daugs. Motion did not pass. Director Ellingson the Executive Committee will review all the information and come to the full board with a recommendation for the budget. Next Board of Directors Meeting The next scheduled board meeting is in September, Department of Emergency Management has asked if they could have the September meeting. Due to the budget not being approved, the Board of Directors would like to keep their September meeting. Good of the Order None The meeting was adjourned at 15:05 PM. The next scheduled meeting of the Kitsap 911 Board of Directors is September 3, 2019 at 2:00 at Norm Dicks Governance Center Kitsap 911 Board of Directors July 26, 2018

10 Resolution (All Versions) Exhibit 2, Page 1 Kitsap 911 Authorized Regular FTE Positions Classification Grade Administrative Specialist Admin1 2 2 Deputy Director M4 1 1 Executive Director ED 1 1 Finance Manager M1 1 1 Human Resources Manager M1 1 1 Assistant Director for Operations M2 0 1 Operations Program Manager OP9 1 0 Professional Standards Program Manager OP9 1 1 Public Safety Communications Assistant Supervisor OP6 6 6 Public Safety Communications Supervisor OP8 4 4 Public Safety Systems Analyst T7 0 1 Public Safety Systems Engineer T8 3 3 Public Safety Systems Master Technician T6 2 2 Public Safety Systems Senior Technician T4 1 1 Public Safety Systems Technician T2 2 2 Public Safety Telecommunicator 1 OP Public Safety Telecommunicator 2 OP Public Safety Telecommunicator Trainee OP1 0 0 Technical Services Manager M2 1 1 Training Program Manager OP

11 Resolution (Version A) Exhibit 1, Page 1 of 3 Revenues Proposed Adopted Actual Delta (to 2019 Budget) $ % 1 Estimated Beginning Fund Balance 2,499, Emergency Communications Sales Tax 5,138,300 4,915,154 5,138, , % Telephone Excise Taxes (Wireline, Wireless, and VoIP) 2,532,717 2,499,491 2,562,641 33, % Service Fees (County,Cities, Fire Districts, Tribes Base fees) 2,339,229 2,054,666 2,182, , % Service Fees (Operating Surcharges ie i/leads, first due, MR) 229, , ,979 84, % Contract Revenues (Humane Society) 56,900 50,020 50,000 6, % Tower Leases 312, , ,732 4, % Emergency Management Facility Maintenance Chrgs 65,835 62,159 65,171 3, % State E911 CPD Contract KC (Wa State Military) 46,006 46,000 24, % Investment Interest 31,773 22,920 81,871 8, % 11 Sub-Total (Operating Revenues) 10,752,473 10,103,157 10,515, , % Grants and Other One-Time Revenues 5,000 24,341 5, % MCT NPRV Surcharges 17,610 15,000 17,610 2, % Alerting Surcharges 250, , , % Emphasis Surcharges 888 5, (4,112) -82.2% 16 Sub-Total (Special and One-Time Revenues) 273, , ,655 3, % 17 Total Revenue + Beginning Fund Balance 13,525,549 Operating Appropriations Proposed Adopted Actual Delta (to 2019 Budget) $ % LTGO Repayment - Principal - 401, ,874 (401,865) % LTGO Repayment - Interest - 40,690 92,242 (40,690) % 20 Total - Debt Service - 442, , Regular Salaries 5,774,598 5,307,476 4,591, , % Overtime Pay 446, , ,342 25, % Annual Leave Payout 20,000 13,187 14,817 6, % Shift Differential Pay 3,078 2,382 3, % Extra Help 59,451 49,853 59,069 9, % Out of Class Pay 23,072 26,814 71,432 (3,742) -14.0% Miscellaneous Pay 105,862 74,815 39,463 31, % Social Security 446, , , % PERS Retirement 785, , ,126 1, %

12 Resolution (Version A) Exhibit 1, Page 2 of 3 Proposed Adopted Actual Delta (to 2019 Budget) $ % Medical Insurance 1,073,860 1,039, ,643 34, % Dental Insurance 81,298 76,387 65,482 4, % Life Insurance 8,853 8,329 7, % Unemployment Compensation 72,926 71,943 64, % Industrial Insurance 36,963 41,113 25,919 (4,150) -10.1% PFMLA 8, , % Salary/Benefit Attrition (360,187) (376,907) - 16, % 40 Operating Wages, Salaries, and Benefits SubTotal 8,585,976 7,986,037 7,546, , % Office/Operating Supplies 43,424 42,279 32,617 1, % Fuel Consumed 9,638 8,464 17,869 1, % Small Tools & Equipment 24,511 21,380 22,787 3, % Computer Software 137,036 64, ,615 72, % Small Computer Equipment 30,639 39,976 8,500 (9,337) -23.4% Small Telephone Equipment 585 1, (665) -53.2% Engineering & Architectural 5,107 2,104 7,078 3, % Applicant Medical Screening 9,006 6,871 10,765 2, % Management Consulting 28,999 19,638 25,980 9, % Special Legal Services 13,968 14,162 14,235 (194) -1.4% Other Professional Service 54,354 49,960 63,779 4, % Advertising 3,829 5,995 2,387 (2,166) -36.1% Telephone 34,107 33,472 33, % Cellular Telephone 10,978 10,181 12, % Postage 2,788 2,213 2, % Mileage 4,078 5,327 1,279 (1,249) -23.4% Travel 31,035 28,672 22,141 2, % Per Diem 12,298 10,319 5,522 1, % Non-Employee Mileage (130) -25.1% Non Employee Travel 825 1, (634) -43.5% Operating Rentals & Leases 206, , ,311 (16,229) -7.3% Insurance 136, ,307-23, % Water 6,627 2,088 6,132 4, % Sewer 2,327 3,686 1,237 (1,359) -36.9% ,04 Electricity 125, , ,600 11, % Waste Disposal 3,800 3,284 3, % Cable TV , % Repairs & Maint-Building 100, , , % ,02 Repairs & Maint-Equipment 86,376 86,100 54, % Repairs & Maint-Comp Equip 383, , ,283 1, % Dues/Subscriptions/Members 6,022 5,227 5, %

13 Resolution (Version A) Exhibit 1, Page 3 of 3 Proposed Adopted Actual Delta (to 2019 Budget) $ % Bank & Credit Card 1,226 1,226 1,231 (0) 0.0% Printing & Binding 2, , % Registration & Tuition 19,479 17,640 16,675 1, % Other Miscellaneous 25,533 31,590 21,518 (6,058) -19.2% KCIS Charges (Network & Security) 111, , ,401 8, % KCIS Charges (GIS) 23, ,994 (107,494) -82.1% Small Tools and Equipment(MCT System) - 1,008 (1,008) % Computer Software (MCT System) , % Small Computer Equipment (MCT System) 15,320 11,720 64,005 3, % Cellular Telephone (MCT System) 171, , ,324 13, % Repairs & Maint- Equipment (MCT System) % Repairs & Maint-Comp Equip (MCT System) 122,619 77,577 21,448 45, % KCIS Charges (I/Leads) 157, ,322 12, % 85 Operating Supplies and Services Subtotal 2,167,097 2,082,846 1,679,183 84, % 86 Total - Operating Budget Appropriation 10,753,073 10,511,438 9,670, , % Technical Enhancements/ Special Project Appropriations Proposed Adopted Actual Systems Technician (Project) - 89,177 57,735 (89,177) % Sub Total - Wages, Salaries, and Benefits - 89,177 57,735 (89,177) % 88 1 MCT NPRVs 17,610 15,000 2, % 89 2 Backup Center (Complete Phase 1) 35, ,000 (105,000) -75.0% 90 7 Closest Fire Unit Dispatching 5,000 15,000 (10,000) -66.7% Technology Monitoring System 70,000 70, % Tower Site Upgrades 26,000 46,000 (20,000) -43.5% Server Virtualization and Cyber Security 110, , % Microwave Design/Prep 45,000 45, % 103 Sub Total - Supplies and Services 309,548 2,871, ,315 (2,561,452) -89.2% 104 Total Technical Projects Appropriation 309,548 2,960, ,050 (2,650,629) -89.5% Election Costs for SB , , % 106 Total - Other Non-Operational Projects 150,000 5,577, ,315 (5,427,000) -97.3% 107 Total Appropriation 11,212, Estimated Ending Fund Balance* 2,312, Reserved Stabalization Fund 1,828, % 110 Reserved Gold Mountan Lease 237, Unreserved 247, Total Appropriation + Ending Fund Balance 13,525,549

14 Resolution (Version B) Exhibit 1, Page 1 of 3 Revenues Proposed Adopted Actual Delta (to 2019 Budget) $ % 1 Estimated Beginning Fund Balance 2,499, Emergency Communications Sales Tax 5,138,300 4,915,154 5,138, , % Telephone Excise Taxes (Wireline, Wireless, and VoIP) 2,532,717 2,499,491 2,562,641 33, % Service Fees (County,Cities, Fire Districts, Tribes Base fees) 2,139,229 2,054,666 2,182,372 84, % Service Fees (Operating Surcharges ie i/leads, first due, MR) 229, , ,979 84, % Contract Revenues (Humane Society) 52,050 50,020 50,000 2, % Tower Leases 312, , ,732 4, % Emergency Management Facility Maintenance Chrgs 65,835 62,159 65,171 3, % State E911 CPD Contract KC (Wa State Military) 46,006 46,000 24, % Investment Interest 31,773 22,920 81,871 8, % 11 Sub-Total (Operating Revenues) 10,547,623 10,103,157 10,515, , % Grants and Other One-Time Revenues 5,000 24,341 5, % MCT NPRV Surcharges 17,610 15,000 17,610 2, % Alerting Surcharges 250, , , % Emphasis Surcharges 888 5, (4,112) -82.2% 16 Sub-Total (Special and One-Time Revenues) 273, , ,655 3, % 17 Total Revenue + Beginning Fund Balance 13,320,699 Operating Appropriations Proposed Adopted Actual Delta (to 2019 Budget) $ % LTGO Repayment - Principal - 401, ,874 (401,865) % LTGO Repayment - Interest - 40,690 92,242 (40,690) % 20 Total - Debt Service - 442, , Regular Salaries 5,774,598 5,307,476 4,591, , % Overtime Pay 446, , ,342 25, % Annual Leave Payout 20,000 13,187 14,817 6, % Shift Differential Pay 3,078 2,382 3, % Extra Help 59,451 49,853 59,069 9, % Out of Class Pay 23,072 26,814 71,432 (3,742) -14.0% Miscellaneous Pay 105,862 74,815 39,463 31, % Social Security 446, , , % PERS Retirement 785, , ,126 1, %

15 Resolution (Version B) Exhibit 1, Page 2 of 3 Proposed Adopted Actual Delta (to 2019 Budget) $ % Medical Insurance 1,073,860 1,039, ,643 34, % Dental Insurance 81,298 76,387 65,482 4, % Life Insurance 8,853 8,329 7, % Unemployment Compensation 72,926 71,943 64, % Industrial Insurance 36,963 41,113 25,919 (4,150) -10.1% PFMLA 8, , % Salary/Benefit Attrition (360,187) (376,907) - 16, % 40 Operating Wages, Salaries, and Benefits SubTotal 8,585,976 7,986,037 7,546, , % Office/Operating Supplies 43,424 42,279 32,617 1, % Fuel Consumed 9,638 8,464 17,869 1, % Small Tools & Equipment 24,511 21,380 22,787 3, % Computer Software 137,036 64, ,615 72, % Small Computer Equipment 30,639 39,976 8,500 (9,337) -23.4% Small Telephone Equipment 585 1, (665) -53.2% Engineering & Architectural 5,107 2,104 7,078 3, % Applicant Medical Screening 9,006 6,871 10,765 2, % Management Consulting 28,999 19,638 25,980 9, % Special Legal Services 13,968 14,162 14,235 (194) -1.4% Other Professional Service 54,354 49,960 63,779 4, % Advertising 3,829 5,995 2,387 (2,166) -36.1% Telephone 34,107 33,472 33, % Cellular Telephone 10,978 10,181 12, % Postage 2,788 2,213 2, % Mileage 4,078 5,327 1,279 (1,249) -23.4% Travel 31,035 28,672 22,141 2, % Per Diem 12,298 10,319 5,522 1, % Non-Employee Mileage (130) -25.1% Non Employee Travel 825 1, (634) -43.5% Operating Rentals & Leases 206, , ,311 (16,229) -7.3% Insurance 136, ,307-23, % Water 6,627 2,088 6,132 4, % Sewer 2,327 3,686 1,237 (1,359) -36.9% ,04 Electricity 125, , ,600 11, % Waste Disposal 3,800 3,284 3, % Cable TV , % Repairs & Maint-Building 100, , , % ,02 Repairs & Maint-Equipment 86,376 86,100 54, % Repairs & Maint-Comp Equip 383, , ,283 1, % Dues/Subscriptions/Members 6,022 5,227 5, %

16 Resolution (Version B) Exhibit 1, Page 3 of 3 Proposed Adopted Actual Delta (to 2019 Budget) $ % Bank & Credit Card 1,226 1,226 1,231 (0) 0.0% Printing & Binding 2, , % Registration & Tuition 19,479 17,640 16,675 1, % Other Miscellaneous 25,533 31,590 21,518 (6,058) -19.2% KCIS Charges (Network & Security) 111, , ,401 8, % KCIS Charges (GIS) 23, ,994 (107,494) -82.1% Small Tools and Equipment(MCT System) - 1,008 (1,008) % Computer Software (MCT System) , % Small Computer Equipment (MCT System) 15,320 11,720 64,005 3, % Cellular Telephone (MCT System) 171, , ,324 13, % Repairs & Maint- Equipment (MCT System) % Repairs & Maint-Comp Equip (MCT System) 122,619 77,577 21,448 45, % KCIS Charges (I/Leads) 157, ,322 12, % 85 Operating Supplies and Services Subtotal 2,167,097 2,082,846 1,679,183 84, % 86 Total - Operating Budget Appropriation 10,753,073 10,511,438 9,670, , % Technical Enhancements/ Special Project Appropriations Proposed Adopted Actual Systems Technician (Project) - 89,177 57,735 (89,177) % Sub Total - Wages, Salaries, and Benefits - 89,177 57,735 (89,177) % 88 1 MCT NPRVs 17,610 15,000 2, % 89 2 Backup Center (Complete Phase 1) 35, ,000 (105,000) -75.0% 90 7 Closest Fire Unit Dispatching 5,000 15,000 (10,000) -66.7% Technology Monitoring System 70,000 70, % Tower Site Upgrades 26,000 46,000 (20,000) -43.5% Server Virtualization and Cyber Security 110, , % Microwave Design/Prep 45,000 45, % 103 Sub Total - Supplies and Services 309,548 2,871, ,315 (2,561,452) -89.2% 104 Total Technical Projects Appropriation 309,548 2,960, ,050 (2,650,629) -89.5% Election Costs for SB , , % 106 Total - Other Non-Operational Projects 150,000 5,577, ,315 (5,427,000) -97.3% 107 Total Appropriation 11,212, Estimated Ending Fund Balance* 2,108, Reserved Stabalization Fund 1,792, % 110 Reserved Gold Mountan Lease 237, Unreserved 78, Total Appropriation + Ending Fund Balance 13,320,699

17 Resolution (Version C) Exhibit 1, Page 1 of 3 Revenues Proposed Adopted Actual Delta (to 2019 Budget) $ % 1 Estimated Beginning Fund Balance 2,499, Emergency Communications Sales Tax 5,138,300 4,915,154 5,138, , % Telephone Excise Taxes (Wireline, Wireless, and VoIP) 2,532,717 2,499,491 2,562,641 33, % Service Fees (County,Cities, Fire Districts, Tribes Base fees) 2,054,666 2,054,666 2,182, % Service Fees (Operating Surcharges ie i/leads, first due, MR) 229, , ,979 84, % Contract Revenues (Humane Society) 50,000 50,020 50,000 (20) 0.0% Tower Leases 312, , ,732 4, % Emergency Management Facility Maintenance Chrgs 65,835 62,159 65,171 3, % State E911 CPD Contract KC (Wa State Military) 46,006 46,000 24, % Investment Interest 31,773 22,920 81,871 8, % 11 Sub-Total (Operating Revenues) 10,461,010 10,103,157 10,515, , % Grants and Other One-Time Revenues 5,000 24,341 5, % MCT NPRV Surcharges 17,610 15,000 17,610 2, % Alerting Surcharges 250, , , % Emphasis Surcharges 888 5, (4,112) -82.2% 16 Sub-Total (Special and One-Time Revenues) 273, , ,655 3, % 17 Total Revenue + Beginning Fund Balance 13,234,086 Operating Appropriations Proposed Adopted Actual Delta (to 2019 Budget) $ % LTGO Repayment - Principal - 401, ,874 (401,865) % LTGO Repayment - Interest - 40,690 92,242 (40,690) % 20 Total - Debt Service - 442, , Regular Salaries 5,774,598 5,307,476 4,591, , % Overtime Pay 446, , ,342 25, % Annual Leave Payout 20,000 13,187 14,817 6, % Shift Differential Pay 3,078 2,382 3, % Extra Help 59,451 49,853 59,069 9, % Out of Class Pay 23,072 26,814 71,432 (3,742) -14.0% Miscellaneous Pay 105,862 74,815 39,463 31, % Social Security 446, , , % PERS Retirement 785, , ,126 1, %

18 Resolution (Version C) Exhibit 1, Page 2 of 3 Proposed Adopted Actual Delta (to 2019 Budget) $ % Medical Insurance 1,073,860 1,039, ,643 34, % Dental Insurance 81,298 76,387 65,482 4, % Life Insurance 8,853 8,329 7, % Unemployment Compensation 72,926 71,943 64, % Industrial Insurance 36,963 41,113 25,919 (4,150) -10.1% PFMLA 8, , % Salary/Benefit Attrition (360,187) (376,907) - 16, % 40 Operating Wages, Salaries, and Benefits SubTotal 8,585,976 7,986,037 7,546, , % Office/Operating Supplies 43,424 42,279 32,617 1, % Fuel Consumed 9,638 8,464 17,869 1, % Small Tools & Equipment 24,511 21,380 22,787 3, % Computer Software 137,036 64, ,615 72, % Small Computer Equipment 30,639 39,976 8,500 (9,337) -23.4% Small Telephone Equipment 585 1, (665) -53.2% Engineering & Architectural 5,107 2,104 7,078 3, % Applicant Medical Screening 9,006 6,871 10,765 2, % Management Consulting 28,999 19,638 25,980 9, % Special Legal Services 13,968 14,162 14,235 (194) -1.4% Other Professional Service 54,354 49,960 63,779 4, % Advertising 3,829 5,995 2,387 (2,166) -36.1% Telephone 34,107 33,472 33, % Cellular Telephone 10,978 10,181 12, % Postage 2,788 2,213 2, % Mileage 4,078 5,327 1,279 (1,249) -23.4% Travel 31,035 28,672 22,141 2, % Per Diem 12,298 10,319 5,522 1, % Non-Employee Mileage (130) -25.1% Non Employee Travel 825 1, (634) -43.5% Operating Rentals & Leases 206, , ,311 (16,229) -7.3% Insurance 136, ,307-23, % Water 6,627 2,088 6,132 4, % Sewer 2,327 3,686 1,237 (1,359) -36.9% ,04 Electricity 125, , ,600 11, % Waste Disposal 3,800 3,284 3, % Cable TV , % Repairs & Maint-Building 100, , , % ,02 Repairs & Maint-Equipment 86,376 86,100 54, % Repairs & Maint-Comp Equip 383, , ,283 1, % Dues/Subscriptions/Members 6,022 5,227 5, %

19 Resolution (Version C) Exhibit 1, Page 3 of 3 Proposed Adopted Actual Delta (to 2019 Budget) $ % Bank & Credit Card 1,226 1,226 1,231 (0) 0.0% Printing & Binding 2, , % Registration & Tuition 19,479 17,640 16,675 1, % Other Miscellaneous 25,533 31,590 21,518 (6,058) -19.2% KCIS Charges (Network & Security) 111, , ,401 8, % KCIS Charges (GIS) 23, ,994 (107,494) -82.1% Small Tools and Equipment(MCT System) - 1,008 (1,008) % Computer Software (MCT System) , % Small Computer Equipment (MCT System) 15,320 11,720 64,005 3, % Cellular Telephone (MCT System) 171, , ,324 13, % Repairs & Maint- Equipment (MCT System) % Repairs & Maint-Comp Equip (MCT System) 122,619 77,577 21,448 45, % KCIS Charges (I/Leads) 157, ,322 12, % 85 Operating Supplies and Services Subtotal 2,167,097 2,082,846 1,679,183 84, % 86 Total - Operating Budget Appropriation 10,753,073 10,511,438 9,670, , % Technical Enhancements/ Special Project Appropriations Proposed Adopted Actual Systems Technician (Project) - 89,177 57,735 (89,177) % Sub Total - Wages, Salaries, and Benefits - 89,177 57,735 (89,177) % 88 1 MCT NPRVs 17,610 15,000 2, % 89 2 Backup Center (Complete Phase 1) 35, ,000 (105,000) -75.0% 90 7 Closest Fire Unit Dispatching 5,000 15,000 (10,000) -66.7% Technology Monitoring System 70,000 70, % Tower Site Upgrades 26,000 46,000 (20,000) -43.5% Server Virtualization and Cyber Security 110, , % Microwave Design/Prep 45,000 45, % 103 Sub Total - Supplies and Services 309,548 2,871, ,315 (2,561,452) -89.2% 104 Total Technical Projects Appropriation 309,548 2,960, ,050 (2,650,629) -89.5% Election Costs for SB , , % 106 Total - Other Non-Operational Projects 150,000 5,577, ,315 (5,427,000) -97.3% 107 Total Appropriation 11,212, Estimated Ending Fund Balance* 2,021, Reserved Stabalization Fund 1,720, % 110 Reserved Gold Mountan Lease 237, Unreserved 63, Total Appropriation + Ending Fund Balance 13,234,086

20 Resolution (Version A) Exhibit 3, Page 1 Service Fees (Agency Allocations) Base Ileads First Due Alerting Mobile Responder 2020 Alocations 2019 Total Delta Kitsap County $ 632, $ 68, $ 2, $ 703,676 $ 614, $ 88,738 Kitsap Coroner $ 8, $ - $ - $ 8,167 $ 7, Poulsbo PD $ 98, $ 10, $ - $ 109,250 $ 97, ,774 Bainbridge Island PD $ 147, $ 15, $ 1, $ 164,177 $ 131, ,535 Port Orchard PD $ 164, $ 17, $ - $ 182,523 $ 165, ,373 Suquamish PD $ 59, $ 5, $ $ 65,397 $ 53, ,614 Pt. Gamble PD $ 24, $ - $ $ 25,536 $ 20, ,054 Bremerton PD $ 363, $ 39, $ - $ 402,363 $ 370, ,176 Bremerton Fire $ 197, $ 10, $ 59, $ - $ 267,861 $ 235, ,130 North Kitsap F&R $ 62, $ 9, $ 17, $ - $ 89,716 $ 74, ,397 Port Gamble Fire $ 5, $ $ 1, $ - $ 7,498 $ 5, ,385 Central Kitsap F&R $ 181, $ 10, $ 54, $ $ 247,693 $ 213, ,298 South Kitsap F&R $ 232, $ 10, $ 70, $ $ 314,220 $ 273, ,486 Poulsbo Fire/FD18 $ 86, $ 10, $ 25, $ $ 123,651 $ 102, ,254 Bainbridge Island Fire $ 74, $ 10, $ 21, $ $ 106,999 $ 83, ,163 $ 2,339,229 $ 157,363 $ 64,662 $ 250,000 $ 7,473 $ 2,818,727 $ 2,449,987 $ 368,740 Mobile Responder set-up surcharge is $ Annual maintenance surchage is $ Charges above include MR clients ordered as of 7/15/19. If each agency orders the total number of MR clients they have indicated they plan to order in 2019 allocations will increase by the amounts indicated below. Kitsap County 2 $ Bremerton Fire - Kitsap Coroner - North Kitsap F&R - Poulsbo PD 15 2, Port Gamble Fire - Bainbridge Island PD Central Kitsap F&R Port Orchard PD - South Kitsap F&R Suquamish PD 9 1, Poulsbo Fire/FD Pt. Gamble PD Bainbridge Island Fire Bremerton PD

21 Resolution (Version B) Exhibit 3, Page 1 Service Fees (Agency Allocations) Base Ileads First Due Alerting Mobile Responder 2020 Alocations 2019 Total Delta Kitsap County $ 577, $ 68, $ 2, $ 648,354 $ 614, $ 33,416 Kitsap Coroner $ 7, $ - $ - $ 7,887 $ 7, Poulsbo PD $ 90, $ 10, $ - $ 100,969 $ 97, ,493 Bainbridge Island PD $ 134, $ 15, $ 1, $ 151,622 $ 131, ,980 Port Orchard PD $ 150, $ 17, $ - $ 168,422 $ 165, ,272 Suquamish PD $ 54, $ 5, $ $ 60,624 $ 53, ,841 Pt. Gamble PD $ 22, $ - $ $ 23,810 $ 20, ,328 Bremerton PD $ 331, $ 39, $ - $ 370,799 $ 370, Bremerton Fire $ 180, $ 10, $ 59, $ - $ 250,883 $ 235, ,152 North Kitsap F&R $ 57, $ 9, $ 17, $ - $ 84,690 $ 74, ,371 Port Gamble Fire $ 4, $ $ 1, $ - $ 7,039 $ 5, ,926 Central Kitsap F&R $ 166, $ 10, $ 54, $ $ 232,127 $ 213, ,732 South Kitsap F&R $ 212, $ 10, $ 70, $ $ 294,151 $ 273, ,417 Poulsbo Fire/FD18 $ 79, $ 10, $ 25, $ $ 116,440 $ 102, ,043 Bainbridge Island Fire $ 68, $ 10, $ 21, $ $ 100,909 $ 83, ,073 $ 2,139,229 $ 157,363 $ 64,662 $ 250,000 $ 7,473 $ 2,618,727 $ 2,449,987 $ 168,740 Mobile Responder set-up surcharge is $ Annual maintenance surchage is $ Charges above include MR clients ordered as of 7/15/19. If each agency orders the total number of MR clients they have indicated they plan to order in 2019 allocations will increase by the amounts indicated below. Kitsap County 2 $ Bremerton Fire - Kitsap Coroner - North Kitsap F&R - Poulsbo PD 15 2, Port Gamble Fire - Bainbridge Island PD Central Kitsap F&R Port Orchard PD - South Kitsap F&R Suquamish PD 9 1, Poulsbo Fire/FD Pt. Gamble PD Bainbridge Island Fire Bremerton PD

22 Resolution (Version C) Exhibit 3, Page 1 Service Fees (Agency Allocations) Base Ileads First Due Alerting Mobile Responder 2020 Alocations 2019 Total Delta Kitsap County $ 553, $ 68, $ 2, $ 624,964 $ 614, $ 10,026 Kitsap Coroner $ 7, $ - $ - $ 7,769 $ 7, (35) Poulsbo PD $ 87, $ 10, $ - $ 97,468 $ 97, (8) Bainbridge Island PD $ 129, $ 15, $ 1, $ 146,313 $ 131, ,671 Port Orchard PD $ 144, $ 17, $ - $ 162,460 $ 165, (2,690) Suquamish PD $ 52, $ 5, $ $ 58,607 $ 53, ,824 Pt. Gamble PD $ 22, $ - $ $ 23,081 $ 20, ,599 Bremerton PD $ 318, $ 39, $ - $ 357,454 $ 370, (12,733) Bremerton Fire $ 173, $ 10, $ 59, $ - $ 243,704 $ 235, ,973 North Kitsap F&R $ 54, $ 9, $ 17, $ - $ 82,565 $ 74, ,246 Port Gamble Fire $ 4, $ $ 1, $ - $ 6,845 $ 5, ,732 Central Kitsap F&R $ 159, $ 10, $ 54, $ $ 225,545 $ 213, ,150 South Kitsap F&R $ 204, $ 10, $ 70, $ $ 285,666 $ 273, ,932 Poulsbo Fire/FD18 $ 76, $ 10, $ 25, $ $ 113,390 $ 102, ,993 Bainbridge Island Fire $ 65, $ 10, $ 21, $ $ 98,334 $ 83, ,498 $ 2,054,666 $ 157,363 $ 64,662 $ 250,000 $ 7,473 $ 2,534,164 $ 2,449,987 $ 84,177 Mobile Responder set-up surcharge is $ Annual maintenance surchage is $ Charges above include MR clients ordered as of 7/15/19. If each agency orders the total number of MR clients they have indicated they plan to order in 2019 allocations will increase by the amounts indicated below. Kitsap County 2 $ Bremerton Fire - Kitsap Coroner - North Kitsap F&R - Poulsbo PD 15 2, Port Gamble Fire - Bainbridge Island PD Central Kitsap F&R Port Orchard PD - South Kitsap F&R Suquamish PD 9 1, Poulsbo Fire/FD Pt. Gamble PD Bainbridge Island Fire Bremerton PD

23 Kitsap 911 Public Authority Resolution Adopting the 2020 Budget and Establishing 2020 Service Fees. WHEREAS, on April 25, 2016 the Board of County Commissioners adopted ordinance enacting chapter of the Kitsap County code (the Ordinance ), creating the Kitsap 911 Public Authority; approving a charter therefor; establishing a Board of Directors to govern the affairs of Kitsap 911; and providing how Kitsap 911 shall conduct its affairs; and WHEREAS, Kitsap 911 (the Authority ) is a public corporation organized pursuant to RCW ; and WHEREAS, the charter requires the Board of Directors adopt the budget and the Bylaws establishes the Service Fee Formula for certain agencies. NOW, THEREFORE, BE IT RESOLVED by the Kitsap 911 Board of Directors as follows: Section Budget Adopted. The Board of Directors hereby adopts the 2020 Budget including revenues, operating and technical enhancement/special project appropriations as attached in exhibit 1. Section 2. Authorized Regular FTE Positions. The Board of Directors hereby adopts the 2020 Authorized Regular FTE Positions as attached in exhibit 2. Section 2. Service Fees Adopted. The Board of Directors hereby adopts the 2020 Service Fees as attached in exhibit 3. Section 3. Severability. If any provision of this Resolution or any provision of any document incorporated by reference shall be held invalid, such invalidity shall not affect the other provisions of this Resolution which can be given effect without the invalid provision, if such remainder conforms to the requirements of applicable law and the fundamental purpose of this agreement, and to this end the provisions of this Resolution are declared to be severable. Section 4. Effective Date. This resolution shall become effective immediately upon adoption and signature as provided by law. MOVED AND PASSED at a regular meeting of the Kitsap 911 Board of Directors on September 3, 2019 of which all Directors were notified and a quorum was present. 1

24 KITSAP 911 BOARD OF DIRECTORS DAVID ELLINGSON, CHAIR ATTEST: Richard A. Kirton, Executive Director 2

25 Kitsap 911 Governing Directive 52 CALEA: Stabilization Reserve Policy See Also: GD Purpose: Adequate reserve levels are a necessary component of Kitsap 911 s overall financial management strategy and a key factor in the measurement of the agency s financial strength. The stabilization fund: provides for adequate monthly cash flow regardless of fluctuation or late payment/posting of revenues, minimizes the need for sudden decreases to service levels or midyear increases to user fees by providing a reasonable level of funding from which the agency can respond to unforeseen occurrences such as revenue shortfalls, natural disasters, or equipment failure, and allows the agency to take advantage of grant opportunities that occur outside of the regular budget cycle. 2.0 Policy Statements: 2.1 Fund levels are set by the Kitsap 911 Board of Directors as part of the budget process. 2.2 Effective with the 2017 budget the stabilization fund level is set at 12% of annual operating expenses plus debt service. By the stabilization fund will be increased to 17% of annual operating expenses plus debt service. 2.3 At least every five years, the Director will evaluate cash flow, revenue stability, equipment replacement fund levels, and the long range plan and recommend to the Kitsap 911 Board of Directors any changes to the fund level or this policy. 2.4 Except as provided for in the General Fiscal Policy, all expenditures drawn from the stabilization fund shall require prior approval of the Kitsap 911 Board of Directors or Executive Committee. pg. 1

26 Executive Summary Kitsap 911 Board of Directors Summary: For the seven months ended July 2019 (58.33% of the year elapsed), both revenues and expenditures continued to trend favorably. Revenues: As of July 2019, we have received approximately $6.5M (62.70%) of projected revenues, exceeding our year-to-date goal of $5.9M (57.03%) by approximately $600K (5.67%). Expected $ Actual $ Variance $ Total Revenue 5.92 M 6.50 M 0.59 M Sales Tax 2.77 M 3.00 M 0.24 M Excise Tax 1.44 M 1.48 M 0.04 M Other Revenues 1.71 M 2.02 M 0.32 M Expected % Actual % Variance % Total Revenue 57.03% 62.70% 5.67% Sales Tax 56.29% 61.07% 4.78% Excise Tax 57.69% 59.21% 1.52% Other Revenues 57.69% 68.34% 10.65% We have received approximately $3.0M (61.07%) of the total projected sales tax revenues, exceeding our year-to-date goal of $2.8M (56.29%) by approximately $200K (4.78%). We have received approximately $1.5M (59.21%) of the total projected excise tax revenues, which was in line with our year to date goal of $1.4M (57.69%) by approximately $40K (1.52%). Other revenues received were also above expectations with $2.0M (68.34%) received of the $1.7M (57.69%) expected. Fluctuations in MCT hardware purchases and the timing of related reimbursements can cause fluctuations in this category. For July 2019, timing differences related to user agency fees and surcharges were the primary drivers behind the fluctuations. 1

27 Expenditures: As of July 2019, we have expended approximately $6.7M (49.92%) of our total appropriation, including approximately $5.7M (56.69%) of our total operating budget (excluding debt service), which slightly less than our year-to-date goal of $5.9M (58.91%). Expected $ Actual $ Variance $ Total Expenditures 8.08 M 6.72 M 1.36 M Operating Salaries & Benefits 4.62 M 4.44 M 0.18 M Operating Non-Labor 1.31 M 1.27 M 0.04 M Debt Service 0.40 M 0.40 M 0.00 M Capital Projects 1.75 M 0.62 M 1.13 M Expected % Actual % Variance % Total Expenditures 59.99% 49.92% 10.07% Operating Salaries & Benefits 57.85% 55.57% 2.28% Operating Non-Labor 62.97% 60.99% 1.98% Debt Service 90.81% 90.81% 0.01% Capital Projects 59.05% 20.81% 38.24% We have expended approximately $4.4M (55.57%) of our total salaries and benefits budget, which was less than our year-to-date goal of $4.6M (57.85%). We have expended approximately $1.7M (66.21%) of the total Operating Supplies, Services, Inter-fund, and Bond budget with a goal of $2.5M (67.85%). As noted in the revenue section above, fluctuations in timing and amounts of MCT purchases can routinely cause variations in this category. For July 2019, the primary drivers were primarily due to expenditures for computer software and hardware. 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. 2

28 Description Kitsap 911 Monthly Financials for the Month Ended 07/31/ Annual Budget Jan - Jul Expected 2019 Budget $ Jan - Jul Expected 2019 Budget % Revenues $ % $ % Sales Tax $4,915,154 $ 2,766, % $3,001,923 $1,913, % $235, % Telephone Excise Tax 2,497,353 1,440, % 1,478,609 1,018, % 37, % Other Revenues 2,960,650 1,708, % 2,023, , % 315, % Total Revenues $10,373,157 $5,915, % $6,503,952 $3,869, % $588, % Expenditures Jan - Jul Actual 2019 Delta to Annual Budget Delta to YTD Budget Operating Labor Salaries $5,895,189 $ 3,401, % $3,176,203 $2,718, % ($224,868) 93.39% Payroll Taxes 558, , % 303, , % (31,175) 90.70% Benefits 1,907,334 1,100, % 956, , % (143,818) 86.93% Budgeted Attrition (376,907) (217,446) 57.69% 0 (376,907) 0.00% 217, % Total Labor $7,984,018 $4,619, % $4,436,636 $3,547, % ($182,414) 96.05% Operating Expenditures Supplies $190,963 $ 126, % $159,370 $31, % $32, % Professional Services 472, , % 207, , % (76,282) 73.13% Communications 203,682 99, % 132,674 71, % 32, % Travel 46,295 41, % 18,672 27, % (23,085) 44.72% Advertising 5,995 2, % 2,952 3, % % Operating Rents/Leases 222,385 96, % 72, , % (24,643) 74.53% Insurance 113,307 95, % 72,816 40, % (22,465) 76.42% Utilities 124,454 66, % 83,527 40, % 17, % Repairs & Maintenance 647, , % 493, , % 28, % Miscellaneous 55,683 32, % 26,210 29, % (6,660) 79.74% Total Non-Labor 2,082,093 1,311, % 1,269,785 $812, % ($41,392) 96.84% Total Operating Expenditures $10,066,111 $5,930, % $5,706,421 $4,359, % ($223,807) 96.23% Debt Service LTGO Bond 2005 Refdg - Principal $ 361,175 $361, % $361, % $ % LTGO Bond 2005 Refdg - Interest 81,380 40, % 40,690 40, % % Total Debt Service $442,555 $401, % $401,865 $40, % $ % Technology Expenditures Capital Projects $2,871,000 $ 1,696, % $565,542 $2,305, % ($1,130,958) 33.34% Labor 89,177 51, % 50,456 38, % (992) 98.07% [ Total Technology Expenditures $2,960,177 $1,747, % $615,998 $2,344, % ($1,131,950) 35.24% Total Expenditures $13,468,843 $8,080, % $6,724,284 $6,744, % ($1,355,757) 83.22%