FIN 2017-10-17 Item 2E - Update - Fire Department Budget

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54 INFORMATIONAL MEMO Page 2 At the September 19, 2017 Finance Committee meeting, staff briefed the Committee that the Fire Department is expected to be over budget due to the additional pipeline positions approved in 2016 and the lack of retirements that were anticipated to occur in 2017. Additionally, expenditures associated with deployments are unpredictable and in September, fire personnel were deployed to assist with recovery efforts associated with two hurricanes. Staff committed to returning to the Finance Committee with greater detail on a budget amendment for the Fire Department. Additionally, staff committed to providing information on other possible budget amendments. DISCUSSION Projected Year -End — Fire Department At this time, staff is estimating that the Fire Department will exceed their adopted budget by approximately $400 thousand, of which $160 thousand is revenue backed. To address the current over budget situation, staff will be recommending a budget amendment; details on which is provided below. In addition to the budget amendment, staff is taking additional steps to better manage the Fire Department's budget. There has been, and will continue to be, ongoing discussions regarding minimum staffing needs and better management of overtime to stay within budget. After review of the impacts of the two additional pipeline positions on salaries, benefits, and overtime, staff has determined that it would be appropriate to reduce the number of pipeline positions to three. When the next two retirements occur, the pipeline positions will not be filled. The budget amendment for 2018 will help cover costs associated with the pipeline positions until they can be absorbed into the budget. Proposed Budget Amendment — Fire Department Staff is recommending a budget amendment of $400 thousand for the Fire Department consisting of three elements. 1. Costs associated with the two additional pipeline positions authorized in June 2016. Costs for each pipeline position is approximately $120 thousand including wages, benefits, equipment, and training for a proposed amendment of $240 thousand. This element of the amendment will be requested for both 2017 and 2018. 2. Expenditures associated with the deployments related to the hurricanes. Approximately $125 thousand in costs were incurred to deploy fire personnel. These costs are revenue backed so the budget amendment would include not only an adjustment to overtime and related benefits but to revenue as well. Due to the lateness in the year that the deployments occurred, the City will most likely not receive reimbursement until 2018. 3. Additional EMS levy funds to account for costs for providing emergency medical services. The City has requested, and will receive, an additional $35 thousand in EMS levy funds that is expected to be received this year. Both revenue and expenditure lines will be adjusted $35 thousand. Other Proposed Budget Amendments Staff is reviewing budgets and identifying other possible budget amendment requests in addition to the budget amendment for the Fire Department. Staff has currently identified the following possible amendment requests, most of which are housekeeping in nature rather than required: Z:\Council Agenda Items\Finance\10.17.17\Info Memo - Fire Budget 10.17.17.docx