Palos Fire Referendum: How the Money Would Be Spent

If the Palos Fire Protection District's  passes on Tuesday, an estimated $1.9 million of additional revenues will be added to the budget sheet each year.

Fire Chief Steve Carr has presented a plan for how that money will be used in various meetings over the last few months. Large portions of the funds will be used to return staffing to levels that would allow both stations to remain open and replacing the district's aging fleet of vehicles.

The following figures represent yearly expenditures and are part of five and six-year plans. 

Recurring Expenses

The largest portion of the money, $1.221 million has been earmarked for recurring expenses. These items mainly involve restoring previously cut expenses like building a capital reserve fund and working to balance the budget.

• $350,000 - Balance the budget, which has an estimated deficit in this amount for this fiscal year. 
• $275,000 Restore cuts to the part-time program that reduced staffing levels to a point where only one of two stations are kept open.
• $150,000 - Restore the purchase of new equipment, which had been halted for the past five years. 
• The district received a federal Safer Grant that allowed for the hiring of new firefighters. As the grant funds decrease, the district will need $68,000 in both 2012 and 2013 to make up the difference. 
• $45,000 - Hire additional administrative staff. Currently, the district employs one administrative staffer.  
• $125,000 - Restore funding the capital reserve. The district has no capital reserve fund at all. This money would be used, as equipment needs to be replaced. 
• Other uses of the money will be restoring training wages, and about $25,000 in other miscellaneous cuts.

Restore Corporate Savings   

Municipalities are generally recommended to have between four and six months worth of operating money on hand. Currently the district has virtually no corporate savings.

The plan would seek to restore savings over a five-year period by contributing $450,000 a year. About $2 million to $2.5 million would be needed to reach the four month cash on hand mark and it would take about five years to reach that level.  

Replacing Rolling Stock

The district has three pieces of equipment that the board and Carr say need to be replaced immediately. It would take six years to pay them off at a cost of $275,000 per year. 

• Replace the 1989 era ladder truck - total cost $750,000 - $800,000
• Replace 1998 engine - $400,000
• Replace 1998 ambulance - $200,000 

Chief Carr says the costs of repairing and maintaining these vehicles is becoming cost prohibitive. At the end of six years, four more vehicles would then be replaced under a five-year plan. 

Station Repairs 

The roofs of both Station One and Station Two are over 20 years old.  In Station Two there are windows that are rotting because of roof leaks and plumbing issues and driveways that need to be addressed, Carr said.

Station One was built in 1955 and remodeled in 1989. Issues with insulation in the ceiling and dry wall are in need of repair, Carr said

"It's only going to continue to get worse until we reach in some point in time how are we are left wondering how are ever going to get anything fixed," Carr said.

The station also has Flexicore flooring that dates back to 1955 and wear and tear from trucks and equipment have made repairs a possibility, Carr said.  

About $55,000 would be devoted each year, over six years, to station repairs. 

As Funds Allow

If funds are available an additional set of expenses have been identified. Sets of turnout gear, a fire hose and Hurst tool all are either overdue or will soon be due for replacement. 

In addition, other vehicles have been identified for replacement as funding allows and time passes. 

With regards to staffing, reinstating a deputy chief position, which was cut several years ago, and once again funding fire prevention and public education would be resorted for a total estimated yearly cost of $175,000. 

"[$1.9 million] is a large amount of money, but it is not going to solve this district's problems in one year," Carr said. "So it is going to take a while to get all of the expenses where they should be."