Ferndale Patrol Officers Take Concessions, Impacts Shortfall

The Ferndale Patrol Officers Union has agreed to concessions in health care and fringe benefits.

"This is a recognition on the part of our police officers that they are willing to share in the sacrifice that the city is going through," Mayor Dave Coulter said of the concessions, which were announced last week. "We gave, they gave and we got to a good point."

The patrol officers union had been without a contract since June 30, 2009.

The concessions are about a 5 percent-6 percent cut in total health care costs, Ferndale Interim City Manager Mark Wollenweber said. The patrol officers union also accepted a three-year wage freeze, cut its holiday pay in half from 48 hours and reduced sick days from 12 to 10.

Another component of the agreement, requested by the patrol officers, is to shift from an eight-hour shift to a 12-hour shift. "This is not a (money) savings, but it enhances coverage," Wollenweber said. "We're going to try it out." Wollenweber said the 12-hour shifts won't go into affect until January 2012. The details of this are still being worked out, Wollenweber said.

“This was difficult to accept, but we recognize the financial difficulties of the city and our goal was to protect jobs and police services for the residents of Ferndale," Union President Detective Brendan Moore said. "Our hope is that this will help local residents look favorably on the May millage vote.”

The biggest savings is done through health care costs, which Wollenweber expects to be in place by June. "The city aimed for a benefit structure that increases deductibles and co-pays and provides incentives for employees to be better healthcare consumers," Wollenweber said. "That will save the city significant sums of money both in the short and long term and reduce our actual health."

The millage vote takes place May 3. It asks Ferndale residents to vote for a 3 mills increase in the city's general operating millage and an additional 2.45 mills over the next four years. Ferndale is facing a projected $2.3 million shortfall this year and a $3.4 million shortfall next year. The millage would create revenue that, according to council, would allow the city to continue near current service levels without drastic cuts. (View potential cuts to public safety and other general fund cuts .)

Finance Director Jaynmarie Hubanks said the police union concession would impact the projected shortfall by saving about $170,000 for the fiscal year ending 2012 and moving forward. Additionally, the concessions will also affect this current budget by saving $87,000.

"(The) health care savings are estimated at $100,000 to $110,000, the reduction in paid holidays and sick days saves about $53,000, and eliminating educational incentive pay saves about $11k," Hubanks said via email. "In addition, by agreeing to forgo pay increases from the start of the contract -- July 1, 2009 -- (this) saves another $87,000 which the City had previously set aside in (FYE) 2011. (The concessions) are a total savings of about $250,000 for 2011 and 2012."