Adding part-time help results in more expense
By
Brandy Chandler-brandychandler@gmail.com
Adding part-time help
results in more expense
First-quarter numbers show increase
in Hillsboro Fire Department spending
Part-time firefighters hired earlier this year by the city of Hillsboro in an effort to reduce overtime and provide costs savings to Hillsboro Fire
and Rescue have resulted in higher costs over the year’s second quarter, according to payroll and expense reports.
According to first quarter numbers from the Hillsboro Auditor’s Office, from Jan. 1 to March 31, 2,013.47 hours of overtime were used at a cost of
$72,741.48. For the second quarter, April 1 – when 17 part-time firefighters were hired – to June 30, 1,315.37 hours of overtime were logged, at a cost
of $47,667.70.
During the second quarter time frame, the part-time wages were $37,718. While the cost of overtime decreased $25,073.78, the city still spent
$12,644.22 more in the department.
During the April council meeting, council approved the purchase of $34,000 of equipment to outfit newly retained part-time and volunteer
firefighters.
A breakdown of fire/squad revenue compared to fire/squad payroll shows the following:
* 2008 payroll expenses: $1,217,195; ambulance revenue, $406,253; fire contracts, $190,408.
* 2009 budgeted payroll expenses: $1,275,484; ambulance revenue, $475,000; fire contracts, $190,408.
* 2010 preliminary 2010 payroll expenses: $1,339,384; ambulance revenue, $500,000; fire contracts, $190,408.
* 2010 with changes payroll expenses: $1,372,258; ambulance revenue, $500,000; fire contracts, $190,408.
The payroll expenses were $1,014,352 in 2005; $1,019,106 in 2006; $1,120,902 in 2007.
According to the auditor’s office, the preceding numbers are “an alternate that eliminates two full-time employees and replaces them with two
part-timers. This results in a payroll savings of approximately $13,000.”
Payroll expenses include wages, health care, PERS, life insurance, accident insurance, worker’s compensation and Medicare. However, health care was not included in the “changes 2010” numbers for two full-time employees due to cost uncertainty, and also does not include built-in overtime or
holiday overtime.
“Based on an average of 148 built-in overtime hours costing $4,900 average per employee and $900 average per employee, holiday overtime would amount to approximately $87,000 for 15 full-time employees.”
Earlier this year, the city hired a collection agency to help recover unpaid bills for EMS runs. According to Hillsboro Auditor Gary Lewis, the
revenue from those collections is lower than was initially projected.
According to the minutes from the March 2010 council meeting, the finance committee chairperson reported that “The committee was informed that the city would need to hire 20 part-time firefighters to cover the two added shift slots needed to reduce overtime.
“Chief Jerry Powell explained to the committee that the reason for the large amounts of overtime is that there is not proper coverage at the Fire
Station. The chief said that he felt that the two added slots would eliminate most of the overtime for the department. The committee then
discussed the costs associated with hiring the part-time firefighters. It was then asked if the Fire Department could implement the plan and stay
within their budget.
“Chief Powell said that he felt it was necessary to move forward with the plan because in his opinion the current system was broken.
“Committee member Dave Shoemaker brought up the fact that the administration did not need the committee’s approval to move forward with
the plan so the committee agreed to end the discussion and let the administration handle the situation going forward.”
Part-time firefighters hired earlier this year by the city of Hillsboro in an effort to reduce overtime and provide costs savings to Hillsboro Fire and Rescue have resulted in higher costs over the year’s second quarter, according to payroll and expense reports.
According to first quarter numbers from the Hillsboro Auditor’s Office, from Jan. 1 to March 31, 2,013.47 hours of overtime were used at a cost of $72,741.48. For the second quarter, April 1 – when 17 part-time firefighters were hired – to June 30, 1,315.37 hours of overtime were logged, at a cost of $47,667.70.
During the second quarter time frame, the part-time wages were $37,718. While the cost of overtime decreased $25,073.78, the city still spent $12,644.22 more in the department.
During the April council meeting, council approved the purchase of $34,000 of equipment to outfit newly retained part-time and volunteer firefighters.
A breakdown of fire/squad revenue compared to fire/squad payroll shows the following:
* 2008 payroll expenses: $1,217,195; ambulance revenue, $406,253; fire contracts, $190,408.
* 2009 budgeted payroll expenses: $1,275,484; ambulance revenue, $475,000; fire contracts, $190,408.
* 2010 preliminary 2010 payroll expenses: $1,339,384; ambulance revenue, $500,000; fire contracts, $190,408.
* 2010 with changes payroll expenses: $1,372,258; ambulance revenue, $500,000; fire contracts, $190,408.
The payroll expenses were $1,014,352 in 2005; $1,019,106 in 2006; $1,120,902 in 2007.
According to the auditor’s office, the preceding numbers are “an alternate that eliminates two full-time employees and replaces them with two part-timers. This results in a payroll savings of approximately $13,000.”
Payroll expenses include wages, health care, PERS, life insurance, accident insurance, worker’s compensation and Medicare. However, health care was not included in the “changes 2010” numbers for two full-time employees due to cost uncertainty, and also does not include built-in overtime or holiday overtime.
“Based on an average of 148 built-in overtime hours costing $4,900 average per employee and $900 average per employee, holiday overtime would amount to approximately $87,000 for 15 full-time employees.”
Earlier this year, the city hired a collection agency to help recover unpaid bills for EMS runs. According to Hillsboro Auditor Gary Lewis, the revenue from those collections is lower than was initially projected.
According to the minutes from the March 2010 council meeting, the finance committee chairperson reported that “The committee was informed that the city would need to hire 20 part-time firefighters to cover the two added shift slots needed to reduce overtime.
“Chief Jerry Powell explained to the committee that the reason for the large amounts of overtime is that there is not proper coverage at the Fire Station. The chief said that he felt that the two added slots would eliminate most of the overtime for the department. The committee then discussed the costs associated with hiring the part-time firefighters. It was then asked if the Fire Department could implement the plan and stay
within their budget.
“Chief Powell said that he felt it was necessary to move forward with the plan because in his opinion the current system was broken.
“Committee member Dave Shoemaker brought up the fact that the administration did not need the committee’s approval to move forward with the plan so the committee agreed to end the discussion and let the administration handle the situation going forward.”
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