HomeMy WebLinkAboutFIN 2017-09-19 Item 2C - Budget - Fire Department Budget UpdateCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Council Committee
FROM: Peggy McCarthy, Finance Director and Jay C Wittwer, Fire Chief
BY: Vicky Carlsen, Deputy Finance Director
CC: Mayor Ekberg
DATE: September 13, 2017
SUBJECT: Fire Department Budget Update
ISSUE
The Fire Department is currently projected to exceed the 2017 adopted budget largely due to
additional pipeline positions authorized by the Council in late 2016 and fewer than anticipated
retirements in 2017.
BACKGROUND
Pipeline Positions
Pipeline positions were introduced to the Fire Department in February of 2014. City Council
approved up to three pipeline positions in 2014 and an additional two pipeline positions in June
of 2016 in anticipation of future retirements.
Pipeline positions are unbudgeted and were created to save overtime costs associated with
retirements. When a Firefighter retires, it takes six to nine months to hire a Firefighter and have
them complete the training academy. The intent of the pipeline positions is to have staff ready to
move into the vacated position, thereby eliminating the need to fill the position with overtime. The
City has experienced overtime savings due to the pipeline positions; however, the savings were
not as much as expected. Pipeline positions that are not filling vacated positions provide an
additional cushion between total staffing per shift and minimum staffing of 13.
Fire Department Retirements
The Fire department's staff enjoys a significant amount of longevity. There are currently 24 Fire
personnel, or 22%, that are eligible to retire in three years or less.
Retirements have been averaging three a year since 2012 (see Exhibit A). However, through the
end of August, there has only been one retirement. When the authorized pipeline positions
increased from three to five, it was anticipated that there would be at least three retirements in
2017 and pipeline positions would transfer into the vacated position.
DISCUSSION
Preliminary Projection for Year -End
In the first quarter financial report presented to Council, it was noted that the Fire Department, in
total, exceeded budget by $51 thousand. The over budget situation was attributed to staffing of
five pipeline positions that are unbudgeted and overtime exceeding budget by $2 thousand.
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INFORMATIONAL MEMO
Page 2
In the second quarter financial report presented to Council, it was noted that the Fire Department,
in total, exceeded budget by $79 thousand.
Staff is currently working to project how much the Fire Department will exceed authorized budget
at year-end. We will return to the Committee in two weeks with the projections to show the
anticipated additional budget needed for the Fire Department due to the unbudgeted pipeline
positions. These will remain projections as there are unknown costs associated with labor
contract settlements.
In addition, there are likely to be additional expenditures associated with the deployments to assist
hurricane affected areas. While these deployments are reimbursable, we do not expect to receive
reimbursement until 2018, requiring a budget amendment for the expenditure authority this year.
The Fire Department has been directed to minimize overtime as much as possible. Additional
information regarding projected year-end as well as other options to address the Fire Department
budget will be brought forward at the October 3, 2017 Finance Committee meeting as well as
answers to questions that arise during the Committee discussion.
RECOMMENDATION
For information only. Additional information on the Fire Department budget will be presented to
Finance Committee on October 3, 2017
ATTACHMENTS
Exhibit A — Leave Payoff Hours and Terminations
16 W.12017 Info Memos\Fire Budget092017 9.13.17 VC RB.docx
INFORMATIONAL MEMO
Page 3
Exhibit A
The red line indicates how many staff departures accured each year since 2006. The blue bar
indicates the number of hours paid out at separation.
3,000
2,000
1,000
0
Fire - Leave Payoff Hours with Terms
2006 2007 2003 2009 2010 2011 2012 2013 2014 2015 2016 2017
mom Leave Payoff — Ter n's
W:12017 Info Memos\Fire Budget092017 9.13.17 VC RB.docx
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