South St. Louis County News

St. Louis Call Newspapers

South St. Louis County News

St. Louis Call Newspapers

South St. Louis County News

St. Louis Call Newspapers

Preliminary ’08 budget for fire district projects deficit of more than $200,000

Union letter states funds for ‘bonuses’ should be shared among all employees

A preliminary fiscal 2008 budget for the Mehlville Fire Protection District projects revenue of nearly $20.5 million and expenditures of roughly $20.7 million — a deficit of more than $200,000.

The preliminary fiscal 2008 budget anticipates total revenue of $20,497,273 with projected expenditures of $20,732,121 — a deficit of $234,848. The district would not go into the red, however, but would dip into its reserves.

The preliminary budget estimates the district will begin fiscal 2008 with a fund balance of $21,090,669 and end the year with a fund balance of $20,855,821.

Though the preliminary fiscal 2007 budget projects a deficit, Board of Directors Chairman Aaron Hilmer told the Call, “We don’t mind gradually spending down the surpluses we have saved up in the past two years. We think that extra tax dollars should stay in the residents’ pockets, not ours.”

He also noted the projected deficit could change drastically before the board adopts a final budget in December.

For example, the preliminary 2007 budget presented to the board in August 2006 projected a deficit of more than $400,000. But when the board approved the budget in December, a surplus of more than $370,000 was projected.

The fiscal 2007 budget approved by the board projects expenditures of $16,401,712 and revenue of $18,472,240.

Excluding $1,699,779 to be collected for the pension fund, which is the subject of a pending lawsuit, a surplus of $370,749 originally was projected on Dec. 31 — the end of the fiscal year. Current projections place that surplus at $351,660.

The proposed “blended” fiscal 2008 tax rate of 59.6 cents per $100 of assessed valuation is 42.3 percent less than the legal maximum of $1.03 the board could levy and 14.6 percent less than the current rate of 69.8 cents per $100. The proposed tax rate breaks down as follows:

• General fund — 39.7 cents. The current levy is 45 cents.

• Ambulance fund — 10 cents. The current levy is 14 cents.

• Alarm fund — 2.5 cents. The current levy is 2 cents.

• Pension fund — 7.4 cents. The current levy is 8.8 cents.

The proposed tax rate and preliminary 2007 budget were discussed last week by the Board of Directors.

Noting the proposed tax rate is 59.6 cents per $100, Hilmer said, “… The legal maximum this year is $1.033. So we are about $11.2 million underneath the legal maximum. Last year, we were $10.8 million under and in 2005, we were $6.6 million (under). That’s $28.6 million in taxes that have not been levied in the past three years that had been planned on previous to April of 2005.

“When I sat with (Comptroller) Judy (Kreider) to look at this, I asked her would she run me some numbers for the tax rates without taking any of the reassessment we were eligible to, and you’re seeing that reflected here. So we’re not taking any of the reassessment money … Just because someone got stuck with a 30-percent reassessment, I don’t think it’s an excuse for us to just take the money.

“Last year, we delivered the lowest tax rate in St. Louis County. Well, obviously, we won’t know that until the end of the year, (but) I think we certainly should have that honor once again,” he said.

Hilmer previously had announced that the board would discuss adding an annual pay increase in the range of $1,500 to $2,000 for firefighter/paramedics.

During the Aug. 2 meeting, he said, “… (The) salary schedule’s pretty similar to last year except we included in there the $2,000 pay increase for people who are cross trained as firefighter/medics. Also, $2,000 for the comptroller, the district clerk and a 2-percent increase for the accountant and purchaser. That would be roughly $1,000 for those, give or take a few shekels …”

Hilmer later said, “Two years ago, we voted to — (board Treasurer) Bonnie (Stegman) and I voted to hire only firefighter/paramedics from that time forward. We had some current employees who were able to either get certification or already possessed it who also became the fire medics. (Assistant) Chief (Steve) Mossotti recently showed — gave us a good report about the dramatic increase in the medical coverage … that affords us as far as increasing the amount of medical coverage to the community. It’s also allowed us to cut our employee staffing from 137 to roughly 127. Now that number fluctuates by one or two, depending on variables.

“So I think we need to instill a pay differential because we never really had a pay — I wouldn’t look at this as necessarily a raise, but a pay differential because we never had a category of firefighter/medic before. Almost all the other fire districts and departments in the county hire only cross-trained personnel. So I think the board has to look at the 33 people that we currently have who are cross trained and realize they are very marketable — people who can move around, apply for other jobs and we have to be aware of that when we’re setting the salaries.

“And while it’s not meant to be a disservice to the other employees, if they don’t have the qualifications to apply at the other districts while they may feel slighted that some are getting a pay differential while others aren’t, the fact is Mrs. Stegman helped put in place a really good tuition-reimbursement policy whereas the district would pay for someone who currently is a firefighter to attend paramedic training. Assuming their grades were decent, the district would pay for it. To this date, zero have taken up that opportunity …”

The board will consider the salary increases when it meets Tuesday, Aug. 21, to set the tax rate, Hilmer said.

But a July 29 letter to the board signed by roughly 110 members of Local 1889 of the International Association of Fire Fighters stated that any funds for “bonuses” should be evenly distributed among all employees.

“For the past six years, the employees of the Mehlville Fire Protection District have been without a pay increase and have only seen a reduction in benefits,” the letter states. “We feel that funds available for bonuses as proposed by Mr. Hilmer should be evenly distributed among all our employees because it takes a team effort of all employees to provide the quality service our residents deserve.”

But Hilmer told the Call that the proposed $2,000 salary increase for firefighter/paramedics is a “pay differential. It’s a new category of a more qualified employee … For the past two years, Mrs. Stegman and myself and now (board Secretary) Mr. (Ed) Ryan have only tried to make the fire district a better place. We try to hire more-qualified people, give the community more services and deal with problems that face everybody — health care and pension. What have the employees done to help us with that? Nothing except lawsuits, personal attacks and circus stunts like this petition.”

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