HomeMy WebLinkAboutMemorandum Long Term Joint Fire Agreement 1986f
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T0: Ithaca Town Board
FMNI: Noel Desch
RE: Future Fire Service - Town of Ithaca
DATE:
It has become quite clear that there is an insurmountable gap
between the amount the City wants us to pay for fire service and
the amount -we can afford to pay to justify continuing a contractual
relationship over the long run.
The enclosed figures show a comparison of the City and Towns
position and the cost of a Town Fire District. The gap over a five
year period approaches $1,000,000. We, therefore, have little
choice but to put in motion the steps necessary to form a Town Telide
Fire District;
I want to make it clear that both parties have been negotiat-ing in
good faith. The City kras willing to make significant changes in
their contractual position namely, Town representation on the Fire
Commission, a freeze on paid personnel positions, two new fire
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stations in the Town. However, their unwillingness to accept the
fact that the Town wasn't buying the same level of response
throughout the Town for the costs the Town would be incurring was a
major factor. The Town, as its district will locate fire stations
at locations which will more uniformly serve the Town than could
otherwise be possible by staying with the City.
one major problem in staying with the City is the hugh retirement
fund legacy which has grown to over $750,000 per year. Eventually
this will decrease but by no more than $100,000 per year upon the
retirement of all the Tier 1 and Tier 2 Firemen. This will take
another ten years or so.
The other big problem is the need to replace much of the City fleet
of engines. This has been made premature because of the City
policy to send from 4 - 6 vehicles to every alarm at Cornell and
Ithaca College - primarily for the purpose of getting six people to
the scene. This is ludicrous but the Chief is unwilling to look
for more practical alternatives such as telling Cornell we need to
use the vast reservoir of trained volunteers already on the scene,
particularly during the day. There still is no plan for the
replacement of the equipment. Therefore, our cost projection for
continuing with the City may be low.
The major question now is what do .we do until the Town Fire
Department is up an running. Fortunately not too much will change
because the City of Ithaca is required to provide mutual aid. By
Q
resolution adopted years ago, the City must give mutual aid if it
expects to receive it.and it is also bound by previous agreement to
seek mutual aid on behalf of the Town when necessary. There is a
concern that such aid might become less responsive in retaliation
for our failure to. contract with. them. Fortunately, the
dispatching is. handled by County Dispatchers at Central Fire
Station, not City employees. There is also a tape kept by the
County Fire Disaster Coordinator of all responses.
it would take one year to get a Town department into full swing.
We have included a full time paid chief and incentives for
volunteers. The Board could decide, as most volunteer department
do, to make the chief a volunteer position and thereby have more
money for attracting volunteers.
To those of us who have been negotiating on this matter for the
past several years it has become patently clear that the time has
come to break with the City on this service. They have provided a
good service at a reasonable cost in the past, although their
effectiveness as a department has seriously deteriorated. There is
evidence of a omit Tent to return to the days when the volunteers
played a significant part in the operation but the Chief has
requested 40 more paid people vtich almost double the increases
shown in the attached information_ With only one of five
representatives on the -City Fire Commission, it is not clear that
we could be sufficiently persuasive in avoiding high escalating
cost perticularly with the Tovm share approaching 30%.
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If the City were to lose the Town, by not agreeing to the Tavm
figures, the mediate impact on their budget in 1987 would be a
tax increase of • $1.37/1000, a 10% tax increase before considering
any of the other budget pressures, i.e.; revenue sharing, other
federal programs,, etc.
ND/ j s
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LONG TERM - JOINT FIRE AGRERVINT
Areas of Agreement
(1) Need for and location of 2 new fire, stations.
(2) Representation by Town on Board of. Fire Commissioners.
(3) MoratorituQn on number of paid fire fighters authorized.
(4) Debt service for new stations to be paid for on approximate
average assessed valuation for operating budget over 10 year
life of contract.
(5) Joint negotiations with Cornell to increase their share.
(6) Joint negotiations on County Fire Training Center.
Areas of Disagreement
(1) Percent of cost to be paid by Town.
(2) Manning of new fire stations by volunteer drivers (bunkers)
during off duty hours.
A
(3) Method of determining percentage of cost. For example,
current 16.71% considers the application of a fraction for
properties beyond the three minute response area.
C� Negotiators Position
Starting
in 1987, City wants Town to
pay
30.7% of the
1986
estimated
fire department ,budget cost.
This
is estimated
to be
30.7 x 2,500,000 = $767,500. They (I believe) are willing to
compromise to 27% the first year with same kind of percentage _
increase each year. In 1987, this would be $675,000 - Towns share
of Cornell contribution of 80,000 x .273 = 21,840.
675,000 - 21,840 = 653,160. This compares with a 196b
payment to the City of 351,274 and the estimated cost of 375,462 if
the old contract terms were continued. The current Fire Tax rate
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would jump from $2.074/1000 to
653,160 + 45,000 (Cayuga Heights) 698,160 _ 3.793
184,052 184,052
3.793
2.074
1.719 difference for a $60,000 hom means $103.14 increase in
taxes in one year for fire protection only, without any
consideration of debt for new stations. This represents
an 82.9% tax increase.
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In 1988, City expects 28% of the 1987 fire department cost. If gyre
assume a conservative 6% increase in the department cost 2,500,000
x 1.06 = 2,650,000 x .28.
742,000 - Cornell share (say 25r000) = 717r000
717,000 + 48,000 - 765,000 - 4.026
190,000 190r000
plus Town share of Fire Station debt
NEW FIRE STATION DEBT (2 stations)
Total capital cost $750,000 at 10 years @ 70
75, 000 (P) + 52, 500 (I) First year - $127, 500
127,500 x .32* _ $40,800
*average Town share for 10 year contract
40,800 = .215/1000 additional for
190,000
total tax rate of 4.026 + 0.215 = 4.241
4.241/3.793 - 11.6% increase over 1987
In 1989
2,650,000 x 1.06 = 2,809,000 x .29 = 814,610 - 30,000 = 784,610
784,610 + 52,000 + 40,800 - 877,410 - 4.57
192,000 1.92,000
4.57
4.241
In 1990
2,809,000 x 1.06 = 21977,540
7.8% increase
x .30 = 893,262
893,262 - 35,000 - 858,262
858,262 + 57,000 + 40,800 - 956,062
195,000 195,000
4.903 - 7.3%
4.57
Town Negotiatinq Position
Town believes current concept of discounting property outside U-iree
minute .response in figuring Town's share is important to keep and
was accepted by the City nine years ago. Planning staff believes
the number will increase from 16.71a to 20% of building value when
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two new stations are built. Town negotiators are willing to accept
20% but not all in one year.
For example, in
1987
increase to
18% of 1985 costs would be
acceptable, 19% in
1988,
20% in 1980-r
etc., ;ee be]_ow,
This would result in the following:
1987 2,400,000 x .18 -- 432,000
432,000 - 22,000 + 45,000 = 2.473
184,000
2.473/2.074 = 19.2% increase
1988 2,500,000 x .19 = 475,000
494,000 - 25,000 + 48,000 + 40,800 = 538r8001. - 2.836„}-,.--.:�
190,000 190,000
2.836/2.473 = 14.7%
1989 2,650,000 x ,.20 = 530,000
530,000 - .30,000 + 52,000 '+ 40,800 = 592,800 = 3.088
192,000 192,000
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1990
3.088/2.836 = 8.9%
2r809r000 x n21_ = 589r890
589,890 - 35,000 +- 57,000 + 40,800 = 652,690 = 3.435
1.95,000 190,000
3.435/3.088 = 11.2%
TMN COST FOR FIRE DISTRICT
1987 - First Year
1. Personal Services
Volunteer incentives paid Chief
40 Volunteers $1,000/volunteer
2. EMzi�xnent
3. Contract Expense
Total O&M
Vehicle Amorization
Fire Station Amorization
$ 30,000
40,000
15,000
97,000
$182,000
I
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TOTAL COST
$182,000
182r000 + 45r000 = 227,000 -- 1.234 Theoretical Rate
184,000 184,000
raise- 419,700
227 r 000
192r700 - to reserve
1988 Second Year'
Personal Services
Equipment
Contract Expense
Total O&M
Vehicle Amorization. .
900,000 @ 10 years
90,000 + 63,000
419,700 - 2.281
184r000
@7%
$ 80r000
20,000
105r000
$205r000
Station Amorization
3 stations - $1,200,000 @ 10 years
120r000 + 84,000 =
Total
$153,000 ✓
204r000
$357,000
357,000 + 205,000 + 48,000 -- 100,.060 (reserve) = 510,000 = 2.684
1901000 1901000
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7. 7
2.684 = 17.70
2.281
2.81 is a close match to Town negotiating position but the 2.836
rate with City includes only a small amount for fire equipment
replacement.
1989 - Third Year
Personal Services
$ 87,000
Equipment
25,000
Contract MTense
115 r 000
Vehicle Am►orization
150r000
Station Amorization
204,000
Total O&M $581 , 000
581r000 + 55,000 - 50,000 (reserve) = 586r000 - 3.052
192,000 192,000
3.052 = 13.7% 3, L'-S Z Y y
2.684 _
1990 -- Fourth Year
Personal Services $ 92r000
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Equipment
Contract Expense
Vehicle Amorization
Station Amorization
Total O&M
602E000 + 62,000 - 50,000
195,000
3.149 - 3.2%
3.052
35,000
130,000
145,000
200,000
$602,000
614,000 - 3.149
195,000
TAX R, 'TEE COMPARISON
City
%
Town
%
Town
%
Position
Change
Position
Change
District
Change
A
B
C
D
E.
F.
1986 2.074
----
2.074
----
2.074
---
1987 3.793 +
82.9
2.473
+ 19.2
2.281
10%
1988 4.241 +
11.8
2.836
+ 14.7
2.684
+ 17.7
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1989 4.570 + 7.8 3.088 + 8.9 3.052 + 13.7
1990 4.903 + 7.3 3.435 + 11.2 3.149 + 3.2
Difference Difference Difference
A-C C-E A-E
Ou .
1987
+1.32
+.192
+1.512
1988
+1.405
+.152
+1.557
1989
+1.482
+.036 -
+1.518
1990
+1.468
+0.286
+1.754
TABLE OF NET "CONTRACT" AMOUNTS
City Town Town Diff Diff Diff
Position Position District A-B B--C A-C
A B C
1986 351.7 351.7 ---- 0 ---
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1987 653.2 412.0 419.7
1988 717.0 509.8 462.0
1989 784.6 540.8 531.0
1990 858.3 554.9 552.0
Accumulated Difference in 5 years
241.2 -7.7 233.5
207.2 47.8 255.0
243.8 9.8 253.6
303.4 2.9 306.3
995.6 1048.4
DTACT ON LASS OF TOWN TO CITY RATEPAYER BASED ON TOWN POSITION
(assumes no non -real estate tax revenue applied to fire
operation - which is not true. However, one can see that
since. the City raises about $4,180,000 in taxes that the loss
of $412,000 will mean a 10% tax increase)
1986 - City Fire Rate
2,400,000 - 100,000 - 412,000 = 1,888 = 6.21
304,100 304.1
1987 - City Fire Rate Without Town
2,500,000 - 100,000 = 2,400 = 7.79
308,000 308
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1987 - City With Town
86.7 + 2,368 - 422 = 2032.7
308 308
1988 - City Fire Rate Without Tmm
2,650 - 1.10 8.14
312
6.60
1988 With Town
86.7 + 2,500 -- 494 = 2,092.7 = 6.71
312 312
1989 - Without Town
2,809 - 120 - 8.40
320
1989 - With Town
2,809 - 120 - 530 86.7
320
2,245.7 -- 7.02
320
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1990 - Without Town
21977 - 130 = 21847
325 325
1990 - With Town
21977 - 130 -- 590 + 86.7
325
Budget Basis
1987
18% of City 1985 costs of 2.4 million
1988
19% of 1986 costs of 2.6 million +
20% of 1987 costs + 32% of debt
1990
21% of 1988 costs + 32% of debt
1991
8.76
2,170.3 = 6.67
325
32% of debt
w
22% of 1989 costs + 32% of debt
1992
23% of 1990 costs + 32 % of debt
1993
24% of 1991 costs + 32% of debt
1994
25% of 1992 costs
1995
26% of 1993 costs.
1996
27% of 1994 costs
At end of 10 years, actual % of assessed value might be used for
new contract.
ND/js