Report Prepared by: Janet German, Secretary III, Fire
Title
SUBJECT: Revenue Adjustment and Supplemental Appropriation of Funds to the Office of Emergency Services (OES) Contingency Accounts and Fringe Benefits Accounts
REPORT IN BRIEF
Consider a revenue adjustment and supplemental appropriation of funds to the OES Overtime Contingency and Fringe Benefits accounts.
RECOMMENDATION
City Council - Adopt a motion authorizing the Finance Officer to make budget adjustments as recommended by staff.
A. Approving the following increases to revenue accounts:
1. $39,239 to 001-0901-332.02-01 - Special Fire Department Service; and,
2. $57,975 to 061-0926-332.02-01 - Special Fire Department Service; and,
B. Approving the following increases to supplemental appropriations:
1. $31,619 to 001-0901-521.04-03 - OES Contingency; and,
2. $ 5,127 to 001-0901-521.10-06 - Social Security-OASDI; and,
3. $ 2,493 to 001-0901-521.10-07 - Social Security-Medicare; and,
4. $38,609 to 061-0926-521.04-03 - OES Contingency; and,
5. $ 5,339 to 061-0926-521.04-06 - Social Security-OASDI; and,
6. $ 1,249 to 061-0926-521.10-07 - Social Security-Medicare; and,
7. $12,778 to 061-0926-522.32-00 - Vehicle Replacement Fee
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to other than recommended by staff; or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting.
AUTHORITY
Charter of the City of Merced, Article XI, Fiscal Administration, Section 1105 Budget - Appropriations, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by the affirmative votes of at least five members.
CITY COUNCIL PRIORITIES
Public Safety, as provided for in the FY 15/16 Adopted Budget.
DISCUSSION
The California Fire Assistance Agreement (CFAA) is the negotiated reimbursement mechanism for the Merced Fire Department (MFD) responses through the California Fire Service and Rescue Emergency Mutual Aid System. The MFD is reimbursed for personnel costs for deployments including apparatus costs and administrative and equipment use fees. Reimbursements for deployed personnel is at 1 ½ times the average Classification/Rank’s straight time, plus a rate for Workers’ Compensation and Unemployment Insurance. For deployments over 12 hours, reimbursement occurs from the time of dispatch and no reimbursement is received for deployments of less than 12 hours. Additionally, the MFD receives a minimum of $90/hour for 16 hours a day while deployed to cover the cost of wear and tear on non-state owned deployed fleet at a 10% administrative and 10% vehicle use fee. Based on the foregoing, reimbursed costs exceed actual expenses.
During the annual budget process, the aforementioned revenue and expenditure accounts are developed based upon mutual aid activity trends from prior fiscal years. Due to unanticipated high volume of mutual aid assistance needed, the revenue and expense appropriations need to be adjusted. Through the CFAA, it is understood and agreed that personnel costs will be initially borne by the mutual aid responder (MFD) and subsequently reimbursed. In other words, the MFD is now recognizing revenue to cover unbudgeted/unappropriated overtime costs, which have already been paid to MFD employees.
Excess funds derived from deployment under the CFAA will be applied towards building a reserve for replacing deployed non-state owned apparatus.
IMPACT ON CITY RESOURCES
The purpose of the recommended adjustments to the revenue and expenditure accounts is to accurately account for the reimbursable mutual aid incidents that the MFD responded to this fiscal year.
ATTACHMENTS
None.