Ironton Council looks at fire fee
Published 12:00 am Thursday, November 21, 2002
As the final opportunity before voting on the ordinance next week, the Ironton City Council met in special session Wednesday to examine alternatives to increasing the fire fee to finance a new fire station.
The meeting was called at the request of Councilmen John Elam, Jim Tordiff and Bob Isaac, who wanted to discuss the necessity of passing the ordinance that schedules three increases to the fire fee during the next 30 years, and to clarify why so much money was budgeted for salaries and benefits of two additional firefighters that will be hired in January.
To meet state guidelines, City Finance Director Cindy Anderson has planned a 30-year budget for the fire department that attempts to account for all possible expenditures.
Based on recent trends, Anderson has projected a 10 percent per year increase in health benefit costs. This projection is compounded each year and the line item also includes a 3-percent salary increase each year, she said.
Elam, Tordiff and Isaac were concerned that
projections in the budget for these salaries and benefits are unrealistically high. For example, in 2030 more than $469,126 is allocated just for the two new employees.
The councilmen said they do not believe that health insurance costs will increase as much as projected.
"I am going to support the fire station no matter what it takes, but I do not see why we cannot lower (the 10 percent estimate) because this is not going to happen," Tordiff said. "I do not think any organization in the country could endure this type of trending."
Anderson said that she has worked through the numbers in different scenarios more than 60 times and that the city has seen more than a 10-percent increase in health costs in recent years.
It may be an overly cautious estimate but she has to put herself on the line and try to predict what is going to happen, she said.
Although all seven council members said that they want to see the fire station proceed immediately, Elam and Tordiff both said they would prefer to leave the option of increasing the fire fee open to future councils and not set dates and amounts at this point.
"I would not want to make a commitment in 2002 that will be (used) for 30 years," Elam said.
Currently, the fire fee costs citizens $4 a month per residence. Because the fund may not be sufficient to finance the entire project, the monthly fee will be increased by 75 cents in 2010, 85 cents in 2020 and $1.05 in 2030. Businesses will see increases of 15 cents per 1,000 gallons in 2010 and 2020 with a 20-cent increase in 2030.
Councilmen Richard Price and Kenneth Pyles said they are comfortable going forward with the ordinance as it is.
"By the pen stroke of a future council, it can be changed at any time," Price said. "I do not think any accountant in the world can see ahead to the rates in 30 years."
Pyles agreed that there has been enough discussion and planning.
"We are at the threshold of delivering to the people something that has been promised to them for 5 years -- increased manpower, serviceable equipment and a new fire station," he said. "If we dance with the figures, we will fumble this thing."
After about an hour of discussion, no action was taken and the ordinances will appear as they were drafted on the next meeting's agenda.
Due to the Thanksgiving holiday, the next regular meeting is at 6 p.m. Monday in the Ironton City Center. The ordinance increasing the fire fee and six ordinances authorizing Mayor Bob Cleary to award bids for the project will be heard in second, and possibly third readings.