Consolidation could save taxpayers $500,000 to $1 million a year in costs (Dec. 22)
By: Lauren Burgoon
WASHINGTON "Let me make this perfectly clear: the fire district has become financially unstable and this problem cannot be corrected by short-term Band-Aids or tax rate increases."
So reads a line in a fire district memo sent Monday by Fire Commission Chairman Rob Hutchinson to all staff and volunteers. The district’s financial situation is so shaky that, based on information in the memo, simply maintaining services at the current level would require a 34 percent jump in fire tax bills by 2008.
It’s an increase that is unsustainable, Mr. Hutchinson said this week, and one that could lead to the town dissolving the fire district, taking over all fire operations and lumping police and fire services under one public safety department.
Consolidating fire and emergency medical services under municipal purview is in the earliest stages of investigation and no one is sure if the incorporation will occur.
But Mayor Dave Fried said Monday that early projections show the consolidation could save taxpayers $500,000 to $1 million a year in costs, streamline emergency services and possibly improve response times. A sizable portion of those savings could come from laying off an estimated eight firefighters one-third of the current paid staff. The fire chief position would be retained and the fire and polices chiefs would be responsible to the mayor under consolidation.
"It’s getting to the point where we won’t be able to keep up with the (fire) tax increases," Mayor Fried said. "Combining the police, fire and EMTs seems like the right thing to do."
Consolidating the fire district and police could bring administrative cost savings, Mayor Fried said. He pegged the savings on shared legal services, billing and other operations that could be handled by township employees, and pension payments from the layoffs.
"I know some people will say we’re anti-firefighter or anti-public safety, but I look at fire companies in towns like East Windsor, Hopewell and Bordentown that run on $1.5 million. I’m suggesting we go down to a $2 million budget. We’ll still be spending more money (than nearby towns) but I think we have a better service," Mayor Fried said.
The firefighters’ union presIdent, Jason Palmer, could not be reached Tuesday for comment.
Mr. Hutchinson said there are benefits both to maintaining the district and seeing it dissolved and brought under municipal operations. He declined to comment further on consolidation, citing his position as an outgoing fire commissioner who is not seeking re-election in February, when the fire district holds its annual elections.
The fire commissioners will have no power to stop the district’s consolidation if the plan moves forward. The move requires a petition signed by 5 percent of registered voters (368 signatures), a public hearing and Township Council vote.
As is stands now, the fire district is an independent body that taxes residents to pay for operations. The fire district has few options to fix financial problems other than raising taxes. Taxes constitute more than 90 percent of annual budgets, with grants and funds from the Department of Community Affairs making up the rest.
Amid explosive growth in recent years, the district hired more and more paid staff, eventually reaching 25. During that time, the state pension plan experienced a surplus and did not require fire districts to make contributions into funds.
"That was a benefit to us, but no one took into account that would stop someday and we’d have to pay back into the fund at higher rates," Mr. Hutchinson said.
Pension contributions, plus health-care costs, gasoline and other expenses "have seriously impacted the district’s long-term financial outlook," Mr. Hutchinson’s letter to the fire staff said.
Staff cuts are possible even if the fire district is not consolidated into the Department of Public Safety. The district only has so much control over costs and one immediate area of savings is cutting positions and the salary, benefits and pension costs associated with each spot.
Consolidating with the township does not come easily or quickly. Municipal officials need to ensure the town can take on fire and emergency medical operations without harming service standards or response times. It will require weeks of study, which has already begun.
One issue under examination is emergency medical response. Currently there are three to four firefighters on fire duty and two emergency medical technicians (EMTs) on ambulance duty per shift. To compensate for the expected staff cuts under consolidation, police officers would be trained as EMTs and could be used as backup when the on-duty staff responds to emergencies.
There are public safety considerations too and how much focus would be put on fire operations if lumped under one public safety department.
"The nice part of a fire district is there is a clear and concise mission to run a Fire Department," Mr. Hutchinson said.
The district’s budget deals solely with fire and emergency services, which would not be the case if the department were included in municipal operations. However, Mr. Hutchinson pointed out, consolidation also means one less election each year to pick fire commissioners and vote on the budget and none of the hassle that goes along with that election.
Calling public safety "paramount," Mayor Fried said dissolving the fire district would not move forward if residents’ safety would be compromised. If studies show consolidation will work, he said, a final plan could come before the Township Council for a vote before the Feb. 18 fire district election.
Barring consolidation, the fire district is exploring its own options, which include the possible staff cuts and consolidating all administrative duties under one clerk. The district also could amend plans to buy new a new fire engine and ambulance in favor of less expensive models.
Meanwhile, the fire district is moving ahead with plans for its 2006 budget regardless of its future. The total 2006 budget is $2.8 million, of which $2.5 million will be raised from taxes. The proposed tax rate is 27 cents per $100 of assessed property value, up 1 cent from this year. Budget approval means a resident with a house assessed at the township average of $175,000 will pay $472 in fire taxes next year, an increase of $17.
The district decided to keep the tax rate as flat as possible while options for its financial future are explored, Mr. Hutchinson said.
Mr. Hutchinson and Commissioner Nate Bouchelle are not seeking re-election. Each seat is for three years. Interested candidates can pick up a petition at the fire station on Route 130. Petitions are due Jan. 20.

