Chelsea Area Fire Authority Chief Jim Payeur took another swing at a 2014 operational budget at a work session of the fire authority board on Nov. 12.
This time around he included pay cuts for all officers and the reduction of two firefighters while not filling a third open position. However, the chief’s new budget still put the department about $73,000 over the projected $1.177 million expected to be collected from the 1.8 mills to fund fire operations from the member municipalities of Chelsea and the townships of Lyndon, Lima and Sylvan.
This iteration retained the third captain’s position, which was eliminated in a previous budget, and it did not include the fire chief working a 24-hour shift, which was also proposed in a previous version.
After two weeks ago presenting a budget that was called “draconian,” to stay within the 1.8 mill revenue stream, Payeur brought back another version that also included retaining the three lieutenants positions.
The board also took a look at rising health care costs that are projected to increase by almost 300 percent, and that’s with the proposed layoffs of two firefighters and not filling a third firefighter position. All three positions were funded for the last three years by a federal grant which has run out. This would mean that the fire house would be operated by three-man shifts round the clock rather than four-man shifts.
Health care costs and wages for fire personnel comprise the largest portion of the budget, but as the board members looked at the budget line item by line item, they requested that the chief come back with another iteration that looked at other ways to reduce costs that did not include pay cuts.
Although the chief recommended pay cuts for all officers in the department and slight increases for the firefighters, the board agreed that they want to retain fair and equitable wages for the whole department.
So, the chief was asked to take another look at other line items such as bonuses for firefighters who are either EMS or EMTs, uniform allowances, and professional services, building and grounds maintenance, and training costs among other things.
Part of the confusion, the CAFA board members said, was the fact that $1 million in reserves has been a number that CAFA auditor Pat Hanniford has stated is usually available at the end of the year, which can be used in any way the board sees fit. However, some of that money already has been budgeted to pay end-of-the-year expenses.
So, what’s the true unencumbered amount? Closer to $650,000 by Board Chairman Rod Anderson’s calculations, and perhaps even less than that.
“We need a number that shows the unencumbered fund balance,” Anderson said.
The consensus of the board is for the department budget to stay within the 1.8 mills approved by voters.
The board will meet again on Tuesday, Nov. 19 at 8 a.m. at Sylvan Township Hall for a work session on the budget that will be followed by a regular meeting at 9 a.m. where they plan to approve a final budget for 2014.
