FMB Fire Commission sets millage rate and budget for FY 2009/10
The Fort Myers Beach Fire Control District Board of Commissioners officially set the millage rate and budget for fiscal year 2009/10 at their final hearing at Fire Station #31 on Tuesday, Sept. 15.
Commissioner Carol Morris made a resolution motion to approve the millage rate at 2.3017 mils, which is the roll back rate and a zero percent increase, and Commissioner Joe Schmid motioned to adopt the budget of $14,227,544 based on the millage rate. Both motions were passed by an unanimous decision, a 5-0 count.
Prior to the motions and public input, FMB Fire Chief Mike Becker made a presentation regarding the past and future. Based on the Sept. 4 budgetary numbers -which were drawn up before six fire fighters were laid off- the budget shortfall was reported to be $1,543,500. Becker reiterated the Board’s direction to reduce costs and maintain reserves.
“Balancing and establishing this budget is very much like hitting a moving target because there’s constant discussions with what is going on with labor,” he said. “The shortfall is in the current expenditures. If you kept the current Collective Bargaining Agreement and the commitments that we made, if you run those costs out, you are going to be short of some money.
“Based on what we understand what the annual salary should be, based on how many employees we have working and the cost of health care and the cost of retirement, you are running short almost $1.6 million.
“It’s important to point out that once we identify that amount of money, it’s very clear we need to reduce wherever we could. Shortfalls have to come out of personnel either through voluntary Collective Bargaining to reduce wages, reduce benefits, reduce overall employee costs and/or reduction of workforce.”
Becker said everything is being done in preparation of the next fiscal year (Oct.1) and that any non-essential education has been eliminated from the budget leaving an impact of $28,970. Daily staffing has been reduced from 14 to 11 people per day for an estimated $112,000 in savings.
“However, overtime costs will increase about $17,000 as that hourly rate is now not off-setted by those lower-waged people because they will be filled by higher-waged people,” said Becker. “We tentatively agreed to Article 25 this afternoon. That impact is about $86,000. So, those are things that are already out.”
Becker mentioned a letter from the labor union after the discussions.
“They proposed that we forgo longevity,” he said. “If that becomes a reality, there is a direct offset of $70,000 to that shortfall. Adjustments to overtime would also reduce the overtime budget by an additional $37,000. Those things haven’t happened yet, but could. That’s what I mean about hitting a moving target. Until they do, we can only speculate what those costs can be.”
Becker discussed wage reductions, stating that a five percent in wages across the board equates to a $260,000. “Every bit of savings will save jobs,” he said.
The fire chief then crunched more numbers if more layoffs were to happen.
Three more fire fighter layoffs would amount to just shy of $300,000. “In direct consequences to that, daily staffing would have to be reduced,” he said.
Becker said that negotiations with union labor will happen this week. “Successful negotiations could eliminate shortfall significantly,” he said. “Remember, labor has the right to say ‘no’ and not come to the table. And, we are powerless to do anything else except reduce the work force. What we do not cut before Oct. 1, it will ultimately lead to deeper cuts after Oct. 1 because if we are spending money that we don’t have, we’re going to have to make up for it down the road.”