Everyone has been touched by one of the most difficult economic environments we've seen for quite some time. From rising fuel costs to falling housing prices, many have experienced increases in living expenses, often coupled with decreases in income. The fire service is no exception.
The distribution of the district's 2009 revenue and expenditures is depicted in the charts. While an anticipated 12% share of the 2009 budget is supplemented from operating reserves, efforts have already been made to trim, cut, or delay non-essential expenditures and projects to help maintain adequate cash flow.
With the 2009 budget year nearing the end of the third quarter, we are in the midst of preparing the 2010 budget year forecast. In doing so, we must also consider the probable monetary impacts for 2011 and make necessary adjustments to weather the period of economic recovery.
The 2010 budget year will reflect the voter- approved renewal of our emergency medical services (EMS) levy, which was an essential component to adequately fund the needs identified for staffing, facilities maintenance and apparatus replacement. However, the drop in assessed valuation for 2010 will generate less revenue than initially anticipated from this levy. An additional decrease in assessed valuation projected for 2011, potentially putting us at or near our statutory levy limit for all property tax collections, will likely result in further loss of revenue.
We have a demonstrated history of solid financial operations and management of your tax dollars. In July 2009, an independent review of the district's financial status was done by Moody's Investors Service and our A2 General Obligation Limited Tax Debt Rating was reaffirmed. This positive rating was reflective not only of our stable fiscal operations, low debt burden, and strong community support from our voters, but also the expected near term decline of the district's tax base.
Sound decisions over the next two years will be critical to the continued financial strength of the fire district for future years. Our primary focus is to maintain essential services and to balance the needs of the district for the near term with the plans and commitments we have made for the long-term to provide our citizens with the best possible service.