Chapter 14: Budgeting

Question 1

The level of funding that would be required to maintain all services at the current authorize levels, including adjustments for inflation and salary increases

Answer 1

Base budget

Question 2

What are the top three local tax revenue sources

Answer 2

1. General sales and gross receipt taxes
2. Property taxes
3. Individual income taxes

Question 3

The five options (in increasing order of difficulty) to lower revenue options

Answer 3

1. Defer scheduled expenditures
2. Privatize or contract out services
3. Regionalize or consolidate services
4. Reduce the workforce
5. Reduce the size of the department

Question 4

Type of purchasing process where the exact amount of the purchase is not known

Answer 4

Requisition

Question 5

What is the first of six steps in the budget cycle

Answer 5

Identification of needs and required resources

Question 6

In RFP The fire department gives ____ and allows the vendor to determine how it will meet the need

Answer 6

General information about what is desired

Question 7

RFP are typically assessed based on?

Answer 7

Performance as well as price

Question 8

USFA 4 step method to develop a competitive grant proposal

Answer 8

1. Conduct a community in fire department needs assessment
2. Compare community needs to the priorities of the grant program
3. Decide what to apply for
4. Complete the application

Question 9

The assistance to firefighters grant program applications are evaluated by

Answer 9

A peer based committee

Question 10

When seeking grant funding, the first step is to

Answer 10

Determine whether a grant program exists that covers your problem area

Question 11

The first two numbers of a line item budget identify what

Answer 11

The fund

Question 12

The second part (5 digit #) of a line item budget identifies what

Answer 12

The department and the division where the money is being spent. Also known as the object code

Question 13

The third part (6 digit #) of a line item budget identifies what

Answer 13

Detailed description of what the money is being used for also known as the subobject code

Question 14

Salaries
Benefits

Fringe benefits: life insurance, pension fund contributions, Worker’s Compensation

Answer 14

Personnel Expenditures

More than 90% of FD budget

Question 15

Uniforms (including replacement)
PPE
Telephone charges
Electricity for fire stations
Flashlight batteries
Fire apparatus maintenance
Toilet paper
Employee training
Mandated training (including OT cost to replace person in training)

Answer 15

Operating Expenditures

Usually the first area to be considered when cutting cost

Question 16

The cost of operating a vehicle is calculated on a ___ basis that includes fuel, schedule maintenance, and anticipated repairs

Answer 16

Per mile basis

Question 17

Replacement of pumper is what type of expenditure?

Answer 17

Capital item

Question 18

Part of operating expenditures, is a per mile vehicle replacement fee applied to automobiles. This amount is calculated by

Answer 18

Estimating the anticipated replacement cost

AND

The projected number of years that the vehicle will be used

Question 19

____ expenditures comprise purchases of durable items that cost more than a predetermined amount and will last for MORE THAN ONE budget year

Answer 19

Capital Expenditures

Question 20

Computers
Hydraulic rescue tools
Washing machines
SCBA
Sedans, pick-up trucks, SUVs
Replacement vehicles
Heavy fire apparatus

Answer 20

Capital Expenditures

Question 21

New fire station construction and major renovations are funded through

Answer 21

Bond programs

Question 22

The authorization to sell bonds is usually valid over a period of how many years

Answer 22

5 to 10 years

Question 23

Bonds are repaid over a period of how many years

Answer 23

10 to 30 years