HomeMy WebLinkAboutIR 8702INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8702
This informal report is provided in response to the City Council's request for additional information regarding
the projected expenditures for four person staffing in the current year budget. The Fire Department FY 2004-
05 budget allocated an additional $500,000 for six month's staffing of all fire companies with four firefighters
per shift through hiring back firefighters on an overtime basis. The department's total constant staffing
overtime budget is $950,118. The budget re- estimate as of June 30, 2005 projects a total expenditure of
$2,375,936. The primary reasons for expenditures in excess of budget are unanticipated changes in leave
usage and the loss of 13 firefighters from the vacation relief pool. The following provides a summary of the
original, assumptions utilized to forecast the budget, the actual staffing and leave use and the factors which
impacted these staffing patterns. Notwithstanding, the budget estimates were continent upon the leave usage
experience patterns and vacation constants in the relief pool.
In order to implement constant four person staffing for all fire companies, the Fire Department considered
two funding strategies — adding permanent positions and hiring overtime personnel. Since the department had
not used overtime for staffing at the level needed for four person staffing, expenditure projections were made
eased on historical staffing levels, leave experience, and the pool of vacation relief firefighters available to fill
for firefighters on leave. After analyzing several scenarios it was determined that the reliance on overtime
for staffing would be less costly than adding permanent positions. It was noted at the time that the overtime
model was very sensitive to any change in leave usage and the complement of firefighters in the vacation
relief pool.
Based on cost, a constant level of leave usage, and fewer retirements due to the DROP program, the use of
overtime appeared to be the favorable option. Also contributing to the decision was the fact that the
department was carrying 11 overage positions. Based on these factors it was decided to use overtime as the
method to implement 4- person staffing.
The unforeseen changes in the assumptions have had an impact on actual overtime use and expenditures.
From the original projection until now, the factors stated above — changes in leave usage and change to the
vacation relief pool — have affected the constant staffing overtime program. As a result, an over expenditure
of $1.4 million is projected in the budget this fiscal year. The specific factors impacting the budget are:
The Fire Department unexpectedly lost 13 positions through retirements and resignations due to some
employees leaving the DROP Program and others opting to retire instead of entering into the DROP
Program. This resulted in an estimated $900,000 additional overtime expenditures for the current fiscal
year to cover the loss of positions.
• From last year, leave usage has increased from 75,549 hours to 82,725 hours [8 %]. Military leave has
increased from 1,179 burs to 2,215 hours [88�1u] due to increased call -up of reservists, leave due to
workers' compensation injuries has increas d 4,494 hours to 7,233 hot rs [510%] as a result of increased
_. firefighter injuries, and leave for training is up from 1,523 hours to 2,521 burs [55%] due to increased
BY THE CITY MANAGER
FORT Wt RTK TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8702
TM! August 4, 2005
r ° To the Mayor and Members of the City Council
Page 2 of 2
ren SUBJECT: Four Person Fire Company Staffing Costs
training requirements. These changes have resulted in about $360,000 in additional overtime expenditures
for the current fiscal year to cover daily vacancies.
In order to maintain four person staffing at all fire companies using overtime, an additional $2.6 million is
needed in Fiscal Year 2005 -06. Staff from the City Manager's Office, Fire, Budget and Management
departments are reviewing alternative staffing models to determine if less costly options are available; or, if
the current funding strategy provides the most efficient model to continue 4- person staffing of fire companies
next fiscal year. The final funding strategy will be incorporated into the FY 2005 -06 recommended budget
schedule to be presented on August 9, 2005. For the interim should you have any questions regarding this
matter, please contact Charles Gaines, Fire Chief, or Joe Paniagua, Assistant City Manager.
54,X-X,� 6z
Charles R. Boswell
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS