Cuts to Fire: Shift to Defensive Philosophy, Higher Insurance Rates

Last year Ferndale's City Council had to close a more than $3 million shortfall in the general fund. As property taxes have continued to fall, which make up nearly half of the general fund revenue, Council is facing another projected shortfall this year in the general fund to the tune of $2.3 million.

Council asked Ferndale Fire Cheif Kevin Sullivan to illustrate 15 percent and 20 percent cuts to his budget to try to help balance the shorftall if the May 3 millage doesn't pass.

The fire department's budget is about $3.8 million; $3.2 million of that goes toward personnel.

In 2008, the department had a staff of 32, plus part-time administrative personnel. As of last summer, when the fire department faced layoffs, it is staffing 29 in house and one part-time administration staffer.

"We're pretty close to the bottom of the bucket right now without changing the way we do business," Sullivan said.

With a 15 percent cut, the department's staff would drop down to 19.5 full-time equivalent positions. With a 20 percent cut, staff would drop to 17.5.

Sullivan said dropping down to 17.5 full-time equivalents would dip below the National Fire Protection Association's standard for manning. Ferndale has six or seven firefighters staffed between its two stations, sometimes eight. The standard is eight, Sullivan said. However, this standard isn't a law, but strongly recommended.

"Technically, we probably should close (S) right now, but if we drop any further, we'll definitely have to close it," Sullivan said.

Additionally, dropping the department staffing to these levels would pull Ferndale out of OAKWAY, a mutual aid agreement in which the city participates with Birmingham, Bloomfield Township, Madison Heights, Pontiac, Royal Oak, Southfield, Waterford and West Bloomfield. Under this agreement, Ferndale recieves help from and assists these cities when requested.

The reduction would also change the philosphy of the fire department. It would move from a more proactive stance – trying to not just save people but property and "stuff" – to a more defensive one – saving just people and the properties around the fire.

"We'd predominately be defensive, let the property burn, prevent and protect the surrounding property," Sullivan said. The consequence of this would raise Ferndale's ISO (Insurance Services Offices) rating from four to five, six or even seven (on a scale of one to 10). The ISO provides information to insurance companies. If Ferndale's ISO rating gets to six or seven, home policies will be affected, Ferndale Interim City Manager Mark Wollweber said.

Sullivan also added that dropping manpower would severely jeopardize .

Sullivan also discussed recommendations for cutting costs without cutting manpower. The Financial Planning Committee had asked the fire department to look into part-paid on call or volunteer firefighters. Troy, for example, has a volunteer firefighter staff.

"(Troy's) chief told us he would not recommend it," Sullivan said. Troy, according to Sullivan, has been cultivating the volunteer staff for 50 years and the buildings codes for that city are much stricter. The culture and codes, he said, allow the city to utilize a volunteer staff better than most communities.

Implementing a volunteer staff now, he said, would require oversight, recruiting, training and then, above all, retaining them. "The best option we have going for us right now is the fire authority," Sullivan said.

However, the millage on May 3 appears to be the impetus for these cuts.

"If the millage doesn't pass on May 3, then those reduction are going to be real and they will have to come from personnel … Your entire philosophy would change dramatically," Mayor Dave Coulter said. "It would be defensive, let it burn and protect lives. That's not acceptable to me. But when 90 percent of the budget is people, I don't know how we get around that."

The links below are what department heads for police and the 43rd District Court have suggested as part of their 15 percent and 20 percent cuts.