Agenda - Council - 10/11/1994 - Laserfiche WebLink

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1995 WAGES FOR FIRE FIGHTERS By: Ryan Schroeder, City Administrator Kay McAIoney, Administrative Services Manager CASE # Backgroun~l: When the R~msey Volunteer Fire Department began in August of 1988 the increment wages were ~.et at $5.00 per increment (which is essentially per hour regarding fire calls). Throughout t~e year of 1994 the increment is still $5.00. An additional officer stipend was initiated in 1~91. A survey wasisent out to all cities with populations between 10,000 and 25,0(X) to ascertain the average c~rrent wage for fire calls, drills, meetings, and officer wages. Of the 22 cities surveyed, 15 ~esponded to the survey. Attached is a copy of the survey. Generally, w~en the issue of fire department compensation has arisen it has revolved around fire r~tief as opposed to hourly wages. While there is an annual request for a general fund ~ontribution to the Fire Relief Association, to date the City contribution has been limited tb payment for the Relief audit, transfer of the Fire State Aid payment to the Association, and a disability plan for all members of the Fire Department. In 1994 the transfer of th4Fire State Aid is in the amount of $27,899. This compares to $25,298 in 1993 and $261538 in 1992. In 1992 with 3,191 hours of service the retiremem transfer and FICA/M~dicare payments resulted in average estimated retirement earnings of $8.69/hour worked (plus the audit payment and disability plan). This dropped to $6.41 for each of the 4,2499 hours worked in 1993. For 1994 it is currently estimated that each of the 3,458 hours w.~rked will generate $8.79/houffperson to the Relief Association. The above compares to a~n average for the balance of benefit earning staff of $2.17/hour worked (assuming 1,72~0 work hours/employee/year). According to the State Auditors Office, 283 Fire Relief AsSociations in the State of Minnesota received no municipal contributions during 1992. Given the aboye there is no additional contribution recommended for the Fire Relief Association b~yond the annual State Aid transfers, audit contributions, and disability insurance. At ~ recent budget discussion it was asked if a portion of the hourly wage could be contributed 1[o a 457 retirement plan by the staff. The City currently has such a plan in place which is ~pen to all employees. This ~nformation has been forwarded to the Fire Department, The above meniioned survey results show that for drills and meetings our current rates of pay are about qv, here they should be. Comparatives in this area range from "no pa3'" to $10.00 per hour~. Therefore our current level at $5.00 per increment is somewhere in the middle. Council recentlY, passed a wage policy that stated Ramsey's intent for payment of wages is to achieve the ~arket mean for cities between 10,000 and 25,000 in population. Further, that for any claslfification or group of employees thi~mean would be the goal after about a seven year serv}ce level average of the group of employees under discussion. As of January, 1995 t~e fire departmeht will have an average semite level of approximately 4.6 years. It appeaqs that $8/hour is the market mean for comparable cities. Followin~z the same format as Other city staff, this results in a recommended 1995 wage of $6.85 w~th a budgeted increase to $7.20 in 1996. The Fire Chief has'suggested, however, that there may be merit in ~taining the $5.00 rate for probationary employees.