09/08/2012
Labor Relations Committee
September 4, 2012
Objectives: To objectively analyze the Departments in the City of Olean to (1) improve program performance and operations, (2) reduce costs where appropriate, and (3) contribute to public accountability.
Reasons for Analysis: We as Aldermen represent the taxpayers and must find ways to reduce costs to run the City and reduce taxes. The 1.01% tax decrease we passed this year was the largest tax decrease in at least the last 40 years. However, as some have told me, it is a token decrease and we must do something more significant -- something that will make a difference in people's lives and encourage businesses and residents to want to move back to this area and keep those that are here. Taxes in the City of Olean are too high - we now pay base taxes of about 5.05% of the value of our homes. The national average is about 1%. We have a lot of work to do but this is a start and a significant start.
Why the Fire Department first? By expenditures, The Fire Department ($2.7 million) is the largest line item in the 2012-2013 General Fund Budget after employee benefits ($4.0 million). Personnel costs and benefits for the Fire Department are about $4 million in this years' budget. After subtracting the estimated ambulance revenues of about $800,000, the costs to city taxpayers for Fire Department personnel and benefits are about $3.2 million. Changes to the Fire Department can have the most significant tax savings to city taxpayers. For example, if the city would contract out the ambulance service and use volunteer firemen, our city taxes could go down about 40 percent. That is something that we as Alderman have to take seriously and do what is in the best interests of our taxpayers.
What about public safety? Public safety is the number one priority and will always be the number one priority no matter how the Fire Department is organized.
Documents to Review: Initially the (1) City Charter, code of ordinances, and the City budget related to the Fire Department, (2) Current agreements we have with the neighboring fire departments, (3) Fireinyou.org documents related to volunteer firemen recruiting, benefits, and their requirements, and (4) Fire Department call logs.
Who will be involved? Every stakeholder in the City of Olean including the aldermen, the residents we represent, business owners, city firemen, neighboring volunteers, neighboring residents and elected officials, and others to be determined.
Fire Department Statistics: The Fire Department work load consists primarily of ambulance calls and ambulance assists -- close to 90% of the workload. Structural fires account for about .3 % of the workload.
Next Step and Methodology: Schedule another Labor Relations Committee meeting on Tuesday October 2, 2012. Objective facts will be clarified and addressed at this next meeting and preliminary findings and conclusions will be presented based on additional information gathered for that meeting. If necessary, will address issues that come up at Committee of the Whole meetings before October 2, 2012. Determine what level of the savings will be allocated to the infrastructure needs of the City. For example, if we can reduce property taxes by 40 percent, possibly we could actually reduce them 20 percent and use the difference for our infrastructure needs.
Fire Chief Agreement: The January 21, 2010, Olean Times Herald quoted Chief Bell as follows: "I think we all need to come to the table - aldermen, fire chiefs, citizens, and firemen - and talk about what our needs are and the level of service we all want, then we can talk about the resources and cost needed to provide that level of service". I agree with Chief Bell and that is why we are having this initial meeting.
Who will Benefit: The 14,000+ residents of the City of Olean, neighboring communities, and those that would like to come back to live and work in the Olean area. Certainly having the potential to reduce City of Olean property taxes by about 40 percent will benefit everyone.
Goal: To vote on the findings recommended by this Committee by December 31, 2012. Annual savings of about $3 million needs our immediate attention while ensuring public safety is our number one priority. About $100 million in cost reductions over the relatively short period of 30 years will benefit current and future generations.
