FY 2020 Budget

Budget Impact: Fighting fires isn't what is used to be. Today, the department responds to more than just fire calls. We respond to any and all hazards, and it takes dedicated firefighters with proper training to handle these calls. In Fiscal Year 2019, the city entered into an agreement with the Spencer Hospital to provide ambulance coverage for the community during certain occurrences. The Hospital has agreed to reimburse the City for costs associated with providing this coverage as well as the Hospital has provided the ambulance and all related supplies. The budget presented maintains the status quo with regards to staffing levels at the Fire Department. No new positions have been proposed or added to the department. The budget does contain an increase in the amount allocated to pay for the paid-on call position within the Department as it has been approximately ten years since the last pay adjustment. The budget contained herein does allow for the completion of a new training facility for the department which will also be utilized by other area fire departments for training as well as other organizations. Clay County has indicated their willingness to participate in the construction of the facility in order to allow the smaller county departments to utilize the facility. The Fire Department continually seeks grants and donations to support their efforts. Currently, the department has a grant application under consideration for the updating of the department's SCBA equipment. If successful, this grant will allow the department to reallocate the funds earmarked for the equipment replacement towards another project.

Future Concerns:

As with the Police Department, an area of concern is the costs associated with the city's match for the 411 pension system. The current system places all of the burden of any annual costs adjustments on the employer, therefore, if the System increases the needed contribution, the city will be responsible to cover those costs. The past few years have seen a decrease in the city's contribution rate, but given considering that the contribution rate is subject to investment returns, that can change. Another area of concern is the rising costs of Worker's Compensation Insurance for the department. For perspective, the city has estimated a total amount of premium for all departments at $240,658 for the budget year. Of that amount, $85,617 (35.58%) is allocated to cover the members of the Fire Department. The city will continue to monitor the situation as there is not much that can be directly done. The Department has not seen a major work comp claim in two years.

Percent of General Fund Expenditures (net transfers)

Employees

35

35

35

32

5

5

5

5

Actual 16/17 Actual 17/18 Budget 18/19 Budget 19/20

Fire Department 8%

Number of Employees (FTEs) Paid on Call Firefighters

83