by Kevin Lilly
Pharos-Tribune
LOGANSPORT —
With the deadline for submitting a budget to the state approaching, members of the city council met Monday to try finalizing proposed changes that will likely reduce the fire department staff.
According to figures given by Mayor Mike Fincher, the city has to shave more than $2 million from its budget as a result of less revenue from property taxes. At Monday’s finance committee meeting, the council offered ways to cut as much as $1.7 million.
That amount, though, depends on how many of the 15 firefighters eligible for the buyout offered last week will take it.
Finance committee chairman Scott Kraud said that he and council president Brannon Meagher recently visited with firefighters to explain the offer, which will provide firefighters with more than 20 years of seniority a payment of $10,000 a year for two years after retirement. The city would also pay their monthly insurance premiums until they reached the age of 65.
In addition, the city would offer the retirees a payment of $100 a week to be part of an on-call network of firefighters who would respond to fire calls when needed. The retirees would also be paid $50 for every call they answered.
If all 15 firefighters accept the buyout, that would reduce the city budget by as much as $800,000. Kraud said of those eligible for the deal, as many as eight expressed an interest.
A handful of firefighters attended the meeting and contributed to the discussion. They confirmed what Kraud and Brannon said of being able to reduce the staffing level through the buyout program but still expressed concerns about staffing levels.
If too few take the offer, Fincher said the council would likely have to resort to laying off firefighters starting with those with the least seniority.
The council seemed to reach a consensus about whether or not to offer the deal to police officers. Councilmen Kerry Worthington said that would only be fair.
Meagher and Kraud planned to meet with the Fraternal Order of Police Lodge 71 today, but there is a concern of reducing the police department staff level.
Come March, LPD will be down to 35 officers, a number Fincher says is not enough to protect the city from crime.
Another factor in the $1.7 million figure is the response from offering to partner with the Cass County Fire District No. 1 for fire protection outside the city limits.
Currently, the city receives about $150,000 a year from Clay, Eel and Noble townships for fire protection. The committee of Logansport firefighters charged with generating ideas to reduce their budget suggested contracting with the fire district.
Fincher said he contacted governing board chairman Sherman Kantzer, who reportedly agreed to meet with the mayor in the near future.
Since the county passed the local option income tax, or LOIT, the city can move certain public safety expenses from the general fund. On Monday, the council agreed to budget no more than $300,000 from the new tax.
Kraud wanted to wait until they begin receiving the money before counting on more from the income tax.
“We don’t have a history of that revenue stream yet,” he said.
Another savings comes from budgeting $500,000 less for insurance premiums in 2011. The council can do so, Kraud said, because the city switched to a health savings account plan for city employees last year. The council had budgeted more than $2 million for 2010 but this year premiums came in at $1.5 million.
Kraud said the council still has a lot of work ahead of it. A preliminary version of the budget is expected to be completed by the end of this week, with the first reading planned at a special meeting in mid-September. The final deadline for an approved budget is Nov. 1.
• Kevin Lilly is news editor of the Pharos-Tribune. He can be reached at 574-732-5117 or kevin.lilly@pharostribune.com.
