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12-A Referendum Position ResM \ MVM J:\ Attorney \Lisa\Resolutions \CURRENT \FD Referendum Vote Res.wpd August 30, 2002 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, EXPRESSING THE POSITION OF THE CITY COUNCIL ON A REFERENDUM BALLOT FOR A PAY RAISE FOR FIREFIGHTERS; URGING PARTICIPATION IN SAID REFERENDUM BY ALL QUALIFIED CITY VOTERS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, a petition has been filed with the City of Paris pursuant to Sec. 141.034 of the Local Government Code seeking pay raises for City of Paris firefighters; and, WHEREAS, the City Council ofthe City ofParis, Paris, Texas, has certified said petition and called an election pursuant to law for consideration of the pay raises proposed; and, WHEREAS, the City has analyzed said petition and finds and determines that the pay referendum as proposed would result in a weighted average 24.07% pay raise increase per affected firefighter; and, WHEREAS, the pay raise proposal as presented and if implemented would result in additional salary expenses beneficial only to firefighters of $507,627.25, equivalent to an additional $.05031 increase on the ad valorem tax rate; and, WHEREAS, at the same time that the proposed pay raise would be implemented, the City of Paris is faced with significant shortfalls in revenues from sales tax, franchise taxes, and other sources, and at the same time is attempting to alleviate a severe space shortage in the Police and Municipal Courts Building by funding the capital cost of purchasing and building a new Police and Municipal Courts Building; and, WHEREAS, the proposed pay raises for the firefighters are not only excessive and unjustified, but are proposed at a time when the City of Paris financial situation already dictates major adjustments in services or taxes; and, WHEREAS, the City Council of the City of Paris has stated publicly and reaffirms its belief that all employees of the City of Paris are important to the success of the services provided thereby, and all employees are entitled to be treated as fairly and equitably as possible with regard to pay and working conditions; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the City Council of the City of Paris hereby urges all registered voters of the city of Paris to participate in that pay referendum whereby Paris firefighters are seeking an approximate 24.07% increase in their base pay, said participation to be either by early voting or by voting on election day, the same being Saturday, September 14, 2002, and that all registered voters of the city of Paris vote "NO" on the proposed pay referendum. Section 3. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this 5th day of September, 2002. Michael J. Hester, Mayor ATTEST: Mattie Cunningham, City Clerk APPROVED AS TO FORM: Larry W. Schenk, City Attorney PARIS FIRE DEPARTMENT PAY RAISE PETITION • PETITION CERTIFIED - ELECTION TO BE HELD SATURDAY, SEPTEMBER 14, 2002 EARLY VOTING AT PARIS CITY HALL WEST ANNEX, 150 SE 1'T STREET, NOW THROUGH SEPTEMBER 10TH, MONDAY THROUGH FRIDAY, 5:00 AM UNTIL 5:00 PM • DISPUTE ABOUT FORM OF THE PETITION AND FORMAT OF THE BALLOT • CITY POSITION IS THAT FORM OF THE PETITION FILED BY THE COMMITTEE OF PETITIONERS WAS INVALID BECAUSE IT ESTABLISHED A NEW STEP SYSTEM AND CREATED POSITIONS THAT ONLY THE CITY COUNCIL HAS THE AUTHORITY TO CREATE • CITY HAD NO CHOICE BUT TO FILE SUIT BECAUSE IT CANNOT SIMPLY AMEND THE PETITION ON ITS OWN TO CORRECT THE ERROR • CITY COUNCIL DETERMINED THAT NO ONE GROUP OF EMPLOYEES SHOULD RECEIVE A LARGER PAY INCREASE THAN THE REST, SO THE CITY NEGOTIATED WITH THE FIREFIGHTERS WITH THAT IN MIND AND OFFERED THE SAME INCREASE IN PAY TO ALL EMPLOYEES, IF FUNDS WERE AVAILABLE TO GRANT AN INCREASE JUDGE WILL RULE AFTER THE ELECTION - BALLOT PRINTED AS PRESENTED BY PETITIONERS • YES OR NO VOTE ON THE MINIMUM PAY FOR THE CLASSIFICATIONS AS PRESENTED • IF FIREFIGHTERS ARE SUCCESSFUL, THESE PAY INCREASES GO INTO EFFECT OCTOBER 1, 2002 • PAY FOR INDIVIDUAL POSITIONS WOULD INCREASE BY 6.81% TO 28.80 %, DEPENDING UPON POSITION; OR FROM $6,009.90 PER YEAR TO $10,465.00 PER YEAR PER PERSON, AN AVERAGE 24.07% INCREASE • FIREFIGHTERS STATED THAT THEY HAVE HAD NO RAISES. WHEN CHALLENGED, THEY STATED THAT THEIR RAISES AVERAGED 1.7% PER YEAR BASED ON THE EIGHTEEN YEAR HISTORY OF BRET HOLBERT, FIREFIGHTER. BRET HOLBERT STATED THAT THIS WAS TRUE, BASED ON HIS STARTING PAY WHEN HE WENT TO WORK FOR THE CITY AND THE INCREASES ADDED UNTIL THE PRESENT ANALYSIS OF CHANGES IN BRET HOLBERTS TOTAL BI- WEEKLY PAY: STARTING PAY IN 1984 = $15,866.00 CURRENT PAY IN 2002 = $33,552.06 (EXHIBIT A) TOTAL PAY INCREASE _ $17,666.06 $17,666.06 / $15,866.00 = 111.20 % INCREASE IN TOTAL PAY AVERAGE ANNUAL INCREASE IN TOTAL PAY: 111.20 % 118 YEARS = 6.17 ANALYSIS OF CHANGES IN BRET HOLSERTS BASE BI- WEEKLY PAY ONLY: STARTING BASE PAY IN 1984 = $15,866.00' CURRENT BASE PAY IN 2002 = $30,784.00' (EXHIBIT B) TOTAL BASE PAY INCREASE _ $14,898.00• 'BASE PAY HISTORY ONLY. DOES NOT INCLUDE OVERTIME, CERTIFICATE PAY, LONGEVITY PAY, PATCH PAY, ETC. $14,898.001$15,866.00 = 93.78 % INCREASE IN BASE PAY AVERAGE ANNUAL INCREASE IN BASE PAY: 93.78 % / 18 YEARS = 5.21 ANNUAL AVERAGE INCREASE IN BASE PAY FOR CITY OF PARIS EMPLOYEES SINCE 1985 a 3.26 (EXHIBIT C) WHAT PERCENTAGE OF RAISES HAVE BEEN PROVIDED EMPLOYEES OF THE CITY OF PARIS IN GENERAL AND THE FIRE DEPARTMENT SPECIFICALLY SINCE 1985? (EXHIBIT D) WHAT IS THE CURRENT PAY STRUCTURE INCLUDING MINIMUM PAY AND CERTIFICATES FOR THE PARIS FIRE DEPARTMENT? PRESENT STARTING BASE PAY OF $28,600.00 ANNUALLY. MUST BE 18 YEARS OLD AND HAVE HIGH SCHOOL DIPLOMA OR G.E.D. TRAINING COSTS PAID BY CITY. AFTER ONE YEAR, THE STARTING FIREFIGHTER IS PAID $30,784.00 (EXHIBIT E) WHAT IS THE AMOUNT OF THE PAY INCREASE REQUESTED BY THE FIREFIGHTERS AND WHAT IS THE COST TO THE CITY IN TERMS OF DOLLARS AND TAXES? (EXHIBIT F) WHAT PERCENTAGE INCREASE WOULD BE REQUIRED FOR EACH POSITION IN THE CLASSIFICATIONS REQUESTED BY THE FIREFIGHTER'S PETITION? A RANGE OF 6.81% INCREASE TO 28.80% INCREASE (EXHIBIT G) WHAT WOULD BE THE WEIGHTED AVERAGE % INCREASE IN THE HOURLY RATE REQUESTED BY THE FIREFIGHTER'S PETITION? THE WEIGHTED AVERAGE % INCREASE WOULD BE 24.07% (EXHIBIT H) WHAT IS THE FINANCIAL IMPACT OF THE NEW CLASSIFICATIONS REQUESTED BY THE FIREFIGHTERS IN TERMS OF DOLLARS AND TAXES? OVER $507,627.25 OR .05031 CENTS INCREASE ON THE PROPERTY TAX (EXHIBIT 1) WHAT IS THE PROPOSED TAX RATE INCREASE POSSIBLE IF THE FIREFIGHTER'S PAY REFERENDUM PASSES? .1993 CENTS PER $100.00 VALUATION (ALMOST 20 CENTS ADDED TO .61 CENTS AT PRESENT), WHICH WOULD BRING THE TAX RATE TO $•8093 (EXHIBIT J) WE CANNOT COMPETE WITH RICHARDSON AND LARGE METROPLEX CITIES, BUT HOW DO PARIS' FIREFIGHTER SALARIES AND BENEFITS COMPARE WITH CIVIL SERVICE CITIES IN OUR REGION OF SIMILAR SIZE? (EXHIBIT K) WHAT IS THE COST OF LIVING FOR INDIVIDUALS RESIDING IN THE CITY OF PARIS RELATIVE TO THE SIMILAR COST OF LIVING FOR THE OTHER CITIES SURVEYED? (EXHIBIT L) THE FIREFIGHTERS CONTEND THAT THERE IS A SERIOUS TURNOVER PROBLEM IN THE FIRE DEPARTMENT AND THAT WE ARE LOSING EMPLOYEES TO OTHER CITIES WHO PAY MORE. IN THE PAST FIVE YEARS, THE FIRE DEPARTMENT HAS AVERAGED A LOSS OF ONLY 2 FIREFIGHTERS PER YEAR FOR ALL REASONS, INCLUDING RETIREMENT, CHANGE OF CAREER, AND TERMINATIONS, AS WELL AS LEAVING TO GO ELSEWHERE. (EXHIBIT M) THERE IS SUCH A DESIRE TO SERVE AS A FIREFIGHTER THAT, DURING THE LAST EXAM HELD TO FILL OPEN POSITIONS WITH THE FIRE DEPARTMENT, THERE WAS AN AVERAGE OF 32 PERSONS PER 1 POSITION WHO TOOK THE EXAM. (EXHIBIT N) WHAT ARE THE WORKING CONDITIONS OF THE PARIS FIRE DEPARTMENT? HAS THE CITY FUNDED NEEDED CAPITAL IMPROVEMENTS AND EQUIPMENT? • OF THE 4 FIRE STATIONS, NUMBER BUILT IN THE LAST 5 YEARS = 3 • TOTAL CAPITAL COST OF NEW FIRE STATIONS IN THE LAST 5 YEARS = $2,190,306.00 (EXHIBIT O) • NUMBER OF NEW FIRE TRUCKS AND RELATED EQUIPMENT PURCHASED FOR THE PARIS FIRE DEPARTMENT IN THE LAST 5 YEARS ALSO (EXHIBIT O) • CAPITAL COST OF NEW EQUIPMENT PURCHASED FOR THE PARIS FIRE DEPARTMENT IN THE LAST 5 YEARS ALSO (EXHIBIT O) THE FIREFIGHTERS MAINTAIN THAT THE CITY HAS ADEQUATE RESOURCES TO INCREASE PAY TO THE LEVELS REQUESTED AND FURNISHED A LETTER FROM THE INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS DATED AUGUST 21, 2001, TO BACK UP THEIR ASSERTION. LETTER REVIEWED AND ANALYZED BY GENE ANDERSON, FINANCE DIRECTOR UPDATED REVENUE ESTIMATES (EXHIBIT P) (EXHIBIT Q) IF THE PROPOSED MINIMUM PAY REFERENDUM PASSES, WHAT ARE SOME OF THE WAYS THAT THE CITY CAN ABSORB THE REQUESTED PAY INCREASE? (EXHIBIT R) GIVE AN EXAMPLE OF WHY IT IS NECESSARY FOR THE CITY TO MAINTAIN A RESERVE FUND. (EXHIBIT S) THE FIREFIGHTERS HAVE SAID, "IN A RECENT EDITORIAL, IT WAS SAID THAT THE CITY SHOULD ACCOMMODATE LAW ENFORCEMENT. WE AGREE. WE SUPPORT THE POLICE IN THEIR EFFORTS TO IMPROVE THEIR DEPARTMENT. HOWEVER, THE FACT REMAINS, WE ARE ALREADY SUBSTANTIALLY BEHIND THE POLICE DEPARTMENT AND ALSO THE PARIS EMS IN RELATIONSHIP TO PAY, AND HAVE BEEN FOR YEARS.' THE FIRE DEPARTMENT HAS BEEN THE BENEFICIARY OF THREE NEW STATE -OF- THE -ART FIRE STATIONS AND HAVE BEEN PROVIDED WITH FOUR NEW TRUCKS, COSTING THE CITY JUST UNDER $4.5 MILLION. THE STARTING PAY FOR AN EMS EMPLOYEE IS LESS THAN THE STARTING PAY FOR A FIREFIGHTER. AS FOR THE OTHER POSITIONS IN THE EMS AND FIRE DEPARTMENT, THE PAY IS COMPARABLE, DESPITE THE FACT THAT THE EMS MADE OVER 7,000 CALLS LAST YEAR, COMPARED TO APPROXIMATELY 1,600 MADE BY THE FIRE DEPARTMENT, ONLY 179 OF WHICH WERE CALLS TO STRUCTURES. THOSE 1,600 CALLS INCLUDE EMS ASSISTS, MOTOR VEHICLE ACCIDENT RESCUES, GRASS FIRES, FIRST - RESPONDERS, PUBLIC SERVICE, ETC. BECAUSE OF THE LARGE NUMBER OF EMS EMPLOYEES WHO WERE OFF WORK DUE TO INJURIES THIS PAST YEAR, OTHER EMS EMPLOYEES WORKED OVERTIME TO COVER THE EMPTY POSITIONS. THIS, AND THIS ALONE, WOULD ACCOUNT FOR ANY APPEARANCE THAT AN EMS EMPLOYEE MAKES MORE THAN A FIREFIGHTER. THE POLICE DEPARTMENT MADE APPROXIMATELY 38,000 CALLS LAST YEAR AND APPROXIMATELY 3,000 ARRESTS. THAT NUMBER OF CALLS DWARFS THE NUMBER OF CALLS MADE BY THE FIRE DEPARTMENT. BECAUSE OF THAT LARGE DIFFERENCE, THERE IS ALSO NATURALLY CONSIDERABLY MORE DANGER TO A POLICE OFFICER BECAUSE OF THE GREATER NUMBER OF TIMES HE IS PLACED IN DANGEROUS SITUATIONS AS COMPARED TO THE FIREFIGHTERS. THE POLICE DEPARTMENT'S SALARIES ARE NOT "SUBSTANTIALLY' HIGHER THAN THE FIRE DEPARTMENTS, AND THE POLICE DEPARTMENT, UNLIKE THE FIRE DEPARTMENT, DOES HAVE CONSIDERABLE TURNOVER. IT CONTINUES TO BE THE POSITION OF THE CITY COUNCIL AND ADMINISTRATIVE STAFF THAT ALL OF OUR EMPLOYEES ARE VALUABLE AND DESERVE TO BE TREATED EQUALLY AND WITH RESPECT. IF A RAISE IS GIVEN, ALL SHOULD BE TREATED EQUALLY. EXHIBIT A ANALYSIS OF CHANGES IN BRET HOLBERT TOTAL BI- WEEKLY PAY TOTAL PAY CHANGE ANNUAL DATE SALARY 10/01/84 $15,886.00 04/01/85 $17,108.00 10/01/85 $18,013.63 10 /01 /86 $19,024.20 10/01/87 $19,714.24 10/01/88 $19,770.40 10/01/89 $21,004.25 10101/90 $21,869.12 07/01/91 $22,518.50 10/01/91 $23,660.00 10/01192 $24,385.08 10/01/93 $25,782.85 10/01/94 $26,492.31 10/01/95 $27,203.90 10/01/96 $28,007.62 12/10/96 $28,610.40 10/01/97 $29,440.32 10/01/98 $30,337.22 10/01/99 $31,767.00 10/01/00 $31,816.51 07/01/01 $32,701.76 10/01/01 $33,552.06 Starting Pay 1984 $15,866.00 Current Pay 2002 $33,552.06 Total Pay Increase $17,666.06 $17,666.06 / $15,866 = 111.20 % increase in total pay. Average annual increase 111.20% /18 years= 6.17% EXHIBIT B ANALYSIS OF CHANGES IN BRET HOLBERT BASE BI- WEEKLY PAY ONLY $14,898 / $15,866 = 93.78% increase in base pay. Average annual increase 93.78 % / 18 years = 5.21 % ' Starting base pay was $611 and changed to $658 after 6 months. " Base pay history only. Does not include overtime, certificate pay, longevity pay, etc. BASE YEAR FIRE DEPT REGULAR COLA F FIGHTER 84 -85 $611 to $658' 85 -86 5.00% $691 86 -87 5.00% $728 87 -88 3.50% $753 88 -89 0.00% $753 89 -90 6.00% $798 90 -91 4.00% $830 91 -92 5.00% $872 92 -93 3.00% $898 93 -94 3.00% $925 94 -95 2.50% $948 95 -96 3.00% $976 96 -97 3.00% $1,005 97 -98 3.00% $1,035 98 -99 3.00% $1,066 99 -00 5.00% $1,119 00 -01 3.00% $1,153 01 -02 2.70% $1,184 Starting Base Pay 1984 $15,866 " Current Base Pay 2002 $30,784 " Total Base Pay Increase $14,898 " $14,898 / $15,866 = 93.78% increase in base pay. Average annual increase 93.78 % / 18 years = 5.21 % ' Starting base pay was $611 and changed to $658 after 6 months. " Base pay history only. Does not include overtime, certificate pay, longevity pay, etc. EXHIBIT C CITY OF PARIS HISTORY OF EMPLOYEE RAISES COMPARED TO CONSUMER PRICE INDEX Aggregate Change 72.27% 65.42% CPI Change Beginning & Ending % Consumer Price Index 85 -86 3.20 107.6 86 -87 2.50 87 -88 3.50 88 -89 0.00 89 -90 6.00 90 -91 4.00 91 -92 5.00 92 -93 3.00 93 -94 3.00 94 -95 2.50 95 -96 3.00 96 -97 3.00 97 -98 3.00 98 -99 3.00 99 -00 5.00 00 -01 3.00 01 -02 2.70 178.00 Annual Average 3.26 Aggregate Change 72.27% 65.42% CPI Change EXHIBIT D ANALYSIS OF CHANGES IN FIRE DEPARTMENT BI- WEEKLY BASE PAY ONLY 3.00% Driver 5.75% YEAR CITY EMPLOYEES FIRE DEPT ENTRY REGULAR DRIVER ENGINEER DEPUTY COLA (no civil service) COLA F FIGHTER F FIGHTER CHIEF 84 -85 611 658 676 711 765 85 -86 3.20% 5.00% 642 691 710 747 803 86 -87 2.50% 5.00% 675 728 746 784 844 87 -88 3.50% 3.50% 699 753 772 811 874 88 -89 0.00% 0.00% 699 753 772 811 874 89 -90 6.00% 6.00% 741 798 818 860 940 90 -91 4.00% 4.00% 771 830 851 895 978 91 -92 5.00% 5.00% 810 872 894 940 1027 92 -93 3.00% 3.00% 834 898 921 968 1058 93 -94 3.00% " range 859 925 974 1060 1263 94 -95 2.50% 2.50% 880 948 998 1087 1295 95 -96 3.00% 3.00% 906 976 1028 1120 1334 96 -97 3.00% 3.00% 933 1005 1059 1154 1374 97 -98 3.00% 3.00% 961 1035 1091 1189 1415 98 -99 3.00% 3.00% 990 1066 1124 1225 1457 99 -00 5.00% 5.00% 1040 1119 1180 1286 1530 00 -01 3.00% ' 3.00% 1071 1153 1215 1325 1576 01 -02 2.70% 2.70% 1100 1184 1248 1361 1619 Average annual pay increases for City employees: other city employees' 3.00% fire fighter 3.31% driver 3.47% engineer 3.67% deputy chief 4.22% training officer 4.23% does not include civil service employees " range -In this year the following % increases were given. Firefighter 3.00% Driver 5.75% Engineer 9.50% Deputy Chief 19.37% Training Officer 19.45% EXHIBIT E M 1E.M G R A N TO: Members of the City Council of the City of Paris FROM: Michael E. Malone, City Manager D U M SUBJECT: Information Request of Benny Plata -City of Paris - 2001/2002 Salary -Bi- weekly Rate DATE: July 9, 2002 In response to Councilman Plata's request, here is information about Fire Department pay: There is a base hourly rate for each classification. Under Civil Service rules, each person in a classification must be paid the same base pay. State law provides for longevity pay of $4.00 per month per year of service ($48.00 /year) up to twenty-five years (e.g. - a firefighter with 10 years of service makes an extra $480.00 annually, 20 years of service, $960.00 annually, etc.), and we do pay longevity pay. We also pay certificate pay: Intermediate Certificate; Advanced Certificate; Master Certificate; and EMT "patch" pay. - Intermediate Certificate: $50.00 per pay period x 26 pay periods = $1300.00 per year. - Advanced Certificate: $75.00 per pay period x 26 pay periods = $1950.00 per year. - Master Certificate: $98.07 per pay period x 26 pay periods = $$2549.82 per year. -EMT "patch" pay: $25.00 per month x 12 months = $300.00 divided x 26 pay periods = $11.54 per pay period = $300.00 per year. -The present starting pay for a firefighter is $1,100.00 per pay period ($9.821 per hour) for the first year of employment = $28,600.00. -After one year, the starting firefighter moves to firefighter base pay which is $1,184.00 per pay period ($10.571 per hour) = $30,784.00. - Firefighter Driver is $1,248.00 per pay period ($11.143 per hour) = $32,448.00. - Firefighter Engineer is $1,361.00 per pay period ($12.151 per hour) = $35,386.00. -Deputy Fire Chief is $1,619.00 per pay period ($14.455 per hour) = $42,094.00. -Fire Training Officer is $1,676.00 per pay period = $43,576.00. These annual figures represent base pay for these classifications and do not include any certificate pay, patch pay, non - regular overtime pay, or longevity pay. The positions listed here, with the exception of the Fire Training Officer, work 24 hours on / 48 hours off shifts. The Training Officer works a 40 hour workweek. The 24 hour shift is 7:00 am until 7:00 am the next day. This type of shift allows for other employment and other careers. All training is paid for by the city, as well as housing, transportation and meals to and from training. The employee is paid while training. EXHIBIT. F STATE OF TEXAS § 2002 I COUNTY OF LAMAR § % s '' F' f ?• 3 PARIS FIRE DEPARTMENT PAY RAISE PETITION We, the persons whose signahires appear below, swear and attest that we are qualified voters of the City of Paris, Texas. Pursuant to TEXAS LOCAL GOVERNMENT CODE §141.034, we hereby petition the Paris City Council to increase the minimum salary of each memtie r of the Paris Fire Department as stated below, effective on October 1, 2002. Classification H_ ourly Si-Week Month Annually Fire Fighter (entry) 10.49 Fire Fighter (1 yr in class) 12.07 1,174.88 2,545.57 30,546.88 1,351.84 Fire Fighter (3 yrs in class) 12.57 2,928.98 35,147.84 1,407.84 3,050.32 36,603.84 Fire Fighter (6 yrs in class) 13.07 Driver (entry) 1,463.84 3,171.65 38,059.84 13.64 Driver (2 yrs in class) 14.14 1,527.68 3,309.97 39,719,68 1,583.68 Engineer (entry) 14.65 3,431.31 41,175.68 1,640.80 3,555.07 42,660.80 Engineer (2 yrs in class) 15.15 Engineer (4 yrs in class) 15.65 1,696.80 3,676.40 44,116.80 Deputy Chief 16.46 1,752.80 3,797.73 45,572.80 1,843.52 3,994.29 47,931.52 Training Officer 23.04 1,843.52 3,994.29 47,931.52 We hereby designate the following five qualined voters of the City of Paris to act as a committee of petitioners pursuant to §102 of the Paris City Charter, and to act as a committee of petitioners authorized to negotiate with the Paris LOCAL GOVERNMENT CODE §141.034(g): City Council in accordance with TEXAS Name: Address: DOB: Voter Reg.# Michael A. Roberts 3.825 Sage Trail Dr. 12 -13-66 92002073 Wilfred M. Hargis 2245 36'" N.E. 4-8 -53 45315 Kevin Hughes 3230 E. Houston 5-9-77 99000006 Steven L. Waiters 320 340' S.E. 11-23-59 43614 William R. McDowell 2510 Ballard Dr. 3 -30-69 40335 EXHIBIT G PARIS FIREFIGHTERS PAY RAISE PETITION ANALYSIS CURRENT RATE PETITION RATE % INCREASE t FIREFIGHTER -ENTRY $9.82 $10.49 6.81% FIREFIGHTER -1 YR. $10'57 FIREFIGHTER -3YR. $12,57 18.98% FIREFIGHTER -6YR. $13.07 23.64% DRIVER -ENTRY $11.14 $13.64 22.41% DRIVER -2 YR. $14.14 26.90% ENGINEER -ENTRY $12'15 %a ENGINEER -2 YRS. $15.15 24 68 ENGINEER -4 YRS. $15.65 28.80% DEPUTY CHIEF $14.45 $16.46 13.87% TRAINING OFFICER $20.95 $23.04 9.98% PARIS FIREFIGHTERS PETITION WEIGHTED AVERAGE INCREASE HOURLY RATE QUANITY POSITION 1 Training Officer 3 Deputy Chief 12 Engineer 6 Driver 33 Firefighter Totals EXHIBIT H 1 I MAXIMUM MINIMUM CURRENT CUMULATIVE BASE RATE AMOUNT RATE $20.95 $20.95 $23.04 $14.45 $43.35 $16.46 $12.15 $145.80 $14.65 $11.14 $66.84 $13.64 $10.57 $348.81 $12.07 $728.37 $625.75 $776.37 1 I MAXIMUM I CUMULATIVE BASE CUMULATIVE AMOUNT RATE AMOUNT $23.04 $23.04 $23.04 $49.38 $16.46 $49.38 $175.80 $15.65 $187.80 $81.84 $14.14 $84.84 $398.31 $13.07 $431.31 $728.37 $776.37 plus 16.4% plus 24.07% Estimated Cost To City Firemen's Pay Raise Petition Maximum Amount 2756 10 TOTAL CURRENT PETITION. CURRENT TOTAL DIFFERENCE OT RATE OT HOURS HOURS SALARY INCREASE CURRENT CURRENT BASE RATE EXTRAS BASE RATE EXTRAS NEW RATE IN RATES NAME HOURLY RATE $3.00 $$357.20 $$$869,,28.W6980.00-00 J Allen $11.87 $11.14 $0.73 $14.14 $0.73 $14.87 0 $585 00 $819.00 $7,475.0 $10,465.00 D' F AAndrew' $10.58 $10.57 $0.01 $1.06 $1.01 $13.07 $15.65 $13.07 $1.01 51.08 $13.08 316.73 $3.50 53.50 $5.25 $3.75 $9,646.00 $6,890.00 $7,475.0 E S Archer � $1323 $10.58 $1215 $10.57 $10.57 $0.30 $13.07 $0.01 $13.08 $250 $250 $3.75 $6,890.00 $585.00 5565.0 $7,475.0 F JArcher $10.87 $0.30 $13.37 $13.26 $2.50 53.75 56,890.00 $585.00 $7,475.00 57,475.00 F R Bass F J Bradshaw $10.76 $10.57 $0.19 $13.07 $13.07 $0.19 $0.15 $13.22 $2.50 $3.75 $6,890.00 0 5585.00 F J Bradshaw $10.72 $10.57 $1215 $0.15 $1.08 $15.65 $3.50 5 $5.25 $9,646.00 5619 00 $10,465.0 E B Corder 51322 $1.00 $16.73 $250 33.75 $6,890.00 $585.00 $7,475.0 E G Cook $10.57 $0.01 $13.07 $0.01 $13.08 $2.50 $3.75 $6,890.00 $585.00 F R Crewford' $1323 510.58 $10.57 $0.24 $13.07 $0.24 $13.31 $$66,889900--000 0 $7,475.00 F C Crews $10.81 $2.50 $3.75 6 890.00 $585 00 $7,475.00 F C Cunningham b;o �� a�5.57 $12.15 $0.14 $0.17 513 07 $15.65 $0.14 $13.21 $3.50 $5.25 $9,646.00 $819.0 $10,465. only F J Dry $13.32 $1.17 $16.62 0 E R user $3.50 35.25 39,646.00 $819.00 $$06,.424659-.010 0,465.00 T E Fitzgerald s23 .26 $1215 $1.11 $15.65 $111 $16.76 $2.50 $3.75 $6,890.00 E B Flippen $11.22 $10.57 $0.65 $13.07 $0.65 $13.72 $14.06 $2.50 $3.75 $6,890.00 $585.00 3585.00 $7,475.00 $8,475.00 F D Frey F R Fugetl $11.56 $10.57 50.99 $13.07 $14.07 $0.99 $6,8 0 00 3565.00 475.0 $7 D James Gordon $12.40 $11.14 $10.57 $1.63 $0.17 $13.07 $0.83 $13.90 $2.50 $2.50 $3.75 $3.75 $6,890.00 $585.00 470• 57,475.00 ' F Gordon $10.74 $0.17 $13.24 $2.50 $3.75 $6,890.0 i H F . J Haddock $10.57 $1.24 $13.07 31.24 314.31 $2.50 $3.75 $6,890.00 $585.00 5585.00 $7,475.0 57,475.0 . F B Hargis 511.81 $10.57 $0.16 $13.07 $0.16 $13.23 $2.50 $3.75 $6,890.00 F J Herman 510.73 $10.57 $11.14 50.95 $0.65 $13.07 50.95 514.02 $3.00 $4.50 $8,268.00 $702.00 3702.00 $8,475.0 58,970.00 F B Hilbert $11.52 $11.79 $14.14 $0.65 $14.79 D J Harlon $$$105 $1.16 6 $13.07 $2.50 $3.75 $6,090.00 $585.00 $7,475.0 DC D Howell $15.65 $0.16 $13.23 $3.50 3525 39,646.00 $819.0 $10,465.0 F K Hughes 510.73 $1215 50.95 $0.64 $15.65 $0.95 $16.60 $3.00 $4.50 $8.268.00 $70200 $8,970.00 E AJatkson $13.10 $11.78 $11.14 $10.57 $0.96 $14.14 $13.07 $0.64 $14.78 $2.50 $3.75 $6,890.00 $585.0 $7,475.0 D JJameson $11.53 $0.96 $14.03 F CJmeson $10.57 $0.12 $13.07 $2.50 $3.75 $6,890.00 $585.00 $7,475.0 F JJohnson $10.71 $10.57 $0.01 $13.07 $0.12 $13.19 $2.50 $3.75 $6,890.00 $05.00 $7,475. C Kelly F C Kelly $10.69 $10.58 $11.14 $0.01 $13.68 $3.00 34.50 $8,268.00 $7020 $8,970.0 F $1216 $7.02 $14.14 $1.02 $15.16 $3.50 $525 $819.0 $$7,465.0 D CMaberry $1215 $1.08 $15.65 51.08 516.73 $2.0 $3.75 $6,846.00 $6,890.00 $585.00 57,475.00 E LMalone $1323 $10.57 $0.94 $13.07 $0.94 $14.01 $3.50 $525 $819.00 F L. McDowell $11.51 $1215 $0.70 $15.65 $0.70 $16.35 $3.50 5 $9,646.00 $10,465.0 $$7,475.0 E TMcDowello $1285 $1215 $0.68 $15.65 $0.68 $16.33 $250 $3.75 $6,890.00 $58s00 E J Moore $1263 $10.57 $0.82 $13.07 $0.82 $13.89 $201 $3.02 $5.539-56 $6,09.90 F . M Nation 51139 $14.45 $1215 $0.75 $16.46 $0.75 $17.21 $3.50 $5.25 $9,646.00 $819.34 3819.00 $10,465.0 OC S Nation $1520 $13.17 $1.02 $15.65 $1.02 $16.67 $15.40 $3.00 34.50 58,268.00 $70200 $8,970.0 E B Palmer $1240 $11.64 $11.14 $10.57 $1.26 $1.07 $14.14 $13.07 $126 $1.07 $14.14 $2.50 $3.75 $6.890.00 $585.00 $7,475.0 D E Pearson F RPorrrei d $$1133.223 $$22..550 5 $3.75 $6,890.00 $585.0 F B Rast $10.73 $10.57 $0.20 $13 07 $0.20 7 11.50 $1.75 S6,000.00 $585.00 $7,475.0 57,475.00 i• n nw 510.77 . , , ,., rn r'r 1',III M7 1.0.17 711.^4 y H F M Roberts $1129 $10.57 $0.72 $13.07 $0.72 $13.79 $2.50 $3.75 $3.75 $6,090.00 $6,890.00 $505.00 $585.00 $7,475.00 57,475.00 F 0 Sheets $11.48 $10.57 $0.91 $13.07 $0.91 $024 $13.98 $15.09 $2.50 $3.50 $525 $9,646.00 $819.00 $10,465.00 E RSiawers $12.39 $12.15 $024 $0.30 $15.65 $13.07 $0.30 $13.37 $2.50 $3.75 $6,890.00 $58.5.00 $7,475.00 F F RStewart W TaBanl $10.87 $11.78 $10.57 $10.57 $121 $13.07 $121 $14.28 $2.50 $3.75 $6,890.00 5585.00 $470.34 .$7.475.00 $6,009.90 DC S Wailers $15.32 $14.45 $0.87 $16.46 $0.87 $17.33 $2.01 $2.50 53.01 $3.75 $5,539.56 $6,890.00 $585.00 $7,475.00 F D Welch $10.71 $10.57 $0.14 $13.07 $0.14 $0.01 $13.21 $13.08 $2.50 $3.75 $6,890.00 $585.00 $7,475.00 F K Wood' $10.58 $10.57 $0.01 $1.14 $13.07 $15.65 $1.14 $16.79 $3.50 $5.25 E V Woodard $1329 $12.15 $4$9. 08.72 $35,245.08 $450,353.80 Pension $45.035.38 Medicare $6,232.40 W. Comp. $6,005.67 Total $507,62725 At 96% collection rate on current - valuation, total cost is equal to .051.88 cents on the lax rate. At 96% collection rate on preliminary 2002 valuation, total cost is equal to .0495 cents on the tax rate. �1 H 0 s✓ CID a EXHIBIT J ANALYSIS OF THE TAX RATE INCREASE PROPOSED RATE: CURRENT RATE: INCREASE: REASONS FOR INCREASE: 0.8093 0.61 0.1993 (ALMOST 20 CENTS) REVENUE SHORTFALL: $5289941 FIREFIGHTER MINIMUM PAY PETITION: $507,831 DEBT FOR POLICE / COURT BUILDING: $435,410 PAY & BENEFIT INCREASE: $427,738 SIDEWALK, CURB & OVERLAY PROJECTS: $112,171 0.0524 0.05031 0.04313 0.04237 0.01111 $2,012,091 0.19932 SURVEY OF OTHER CITIES AS COMPARED TO CITY OF PARIS FIRE DEPARTMENT SALARIES AND BENEFITS City Waxahachie Denison Corsicana Greenville Marshall Texarkana Sherman Paris Population 21,426 22,773 24,485 23,960 23,935 34,782 35,082 MEAN PARIS'S 25,898 Employment System Civil Service Civil Service Civil Service Civil Service Civil Service Civil Service Civil Service AVERAGE RANK Civil Service ber of sworn personnel 39 54 .37 48 44 78 74 53 3 57 iber fire stations 2 3 4 4 3 5 5 3.7 2' 4 viry ambulance service? No Yes Yes 1 -1 -03 No Yes No Yes 3•No; 4 -Yes No classifications salaries month! n «.e ,-r a -. :r l; 1 <5714 •V ry Fire Chief 6871 4925 4677 6193 5722 5557 .6000 5 Asst. Fire Chief 5036 4405 3799 4956 5450 Fire Marshall 5038 3353 3926 4507 4196 3670 4214 4129 3 4270 Fire Captain 4480 3352 34882 4080 3707 3708z 3658 3782 6 5 3508 (Doty Chl FIre Lieutenant 4059 3034 2983 3385 3266 3373 3351 7 5 2949 En Fire Driver 3643 2751 3599 3972 29527 3091 3168 1 6 2704 Firefighter 3273 2522 2591 2996 2331= 25992 2838 2736 6 4 2565 Fire Recruit - ent 2814 .1798 2186 2646 2160 2260 2322 2312 3 2383 ifiate Pay month ._.ln..;.,e. rn. r,,::u .u,.. *. ✓. r!..:, .. ... .: :.... .. .::. .. .;,. -.- ::- „:.. ..v M.: a. : -. ,...,. ....:. -.:•: , r.. ,. ,.... >. .. ... ... r.or..; :.. .,:�,+., Intermediate 60 30 25 70 50 50 104 56 1 108 Advanced 120 60 50 142 100 100 114 98 1 163 Masters 180 60 75 213 150 0 0 97 2 212 levity Pa y (monthly per ear 6 4 4 5 4 4 5 4.58 3 4 Pa month 35 75 37.50 0 G8 0 130 49 6 25 eHours �ni,:: ✓,., ,r. sr.. cq ... ., rr; ..h.a,., .. .r. .,. . r... ,: _.;..:. :, .,:; �:. -- ..ef'e .. me ;cr. 30 0 30 25 0 30 44 0 12 3 0 60 0 60 50 0 60 88 0 24 3 0 90 0 90 75 0 90 132 0 64 3 0 120 0 120 100 0 120 176 0 49 3 0 um Allowance month! 0 25 38 0 0 0 0 9 21 25 lion Benefits annual 15 days 15 days 15 days 15 days 15 days days 15 days 15 1 15 days Leave Benefits annual 15 days 15 days 15 clays 15 days 15 days days 15 days 15 1' 15 days al- Dental Insurance monthly) ..- ,.,::: .. .... - ... ..,.:... Em I e No cos! No cos! No cost No cost Metl -NO cost; Denlal•13.20 0 Metl•NO cost; Dental -11.51 7 1 r No cost S se onl 283.94 278.17 283.00 170.00 Med- 184.86; Denlal -13.40 00 E15day-120 Metl- 190.00; Dental -22.93 229 1 131.00 Children onl 159.29 97.44 173.00 134.00 Med - 103.44; Dental -17.43 00 Med- 155.00; Dental -22.93 144 1 7.65 Faml 387.26 413.85 486.00 275.00 Med - 258.72 Dental -44.05 00 Med- 220.00; Dental -33.86 353 1 220.15 of shills 24 on.48 o0 24 on -48 o0 24 on -48 off 24 on -48 off 24 on -48 off 48 off 24 on -48 off 24 on.48 off Ime Calwlale0 21 day -159 hour 28 day -212 hour 21 day -159 hour 28 day -212 hour 27 day -204 hour hour 7 day -53 hour 1 7 day-53 hour miss tie -age of ranges bar In parenthesis () Indicates Pads rank adjusted if certain artifiale pay Is included. EMT pay Is considerably higher for those cities whose fire department personnel actually provide primary ambulance service. Paris Ore department personnel do not provide primary ambulance service. For cities whose fire rtment personnel do provide primary ambulance service, the average EMT pay is $78.00, while the average EMT pay for those cities whose fire departments do not provide primary ambulance service Is V2.00, and Pads would inked 2nd. receive certificate pay OR education pay, but NOT BOTH: therefore, for purposes of this survey, calculations were performed using only certificate pay. 01 P� H F�1 y SURVEY OF OTHER CITIES AS COMPARED TO CITY OF PARIS COST OF LIVING STATISTICS 'Indicates tie Sources: U.S. Census Bureau Yahoo /Monsterdata.com 1�1 ICI y L-1 Waxahachie Denison Corsicana Greenville Marshall Texarkana Sherman RANK Paris Population 21,426 22,773 24,485 23,960 23,935 34,782 35,082 3 25,898 Cost of Living Index 91 85 95 100 88 99 100 1 84 Median Household Income $43,213 $31,474 $27,203 $34,606 $30,335 $29,727 $34,211 7 $27,438 Single Family Home Sale Price Index 88 55 62 69 57 65 71 8 53 Median Value of Owner- Occupied Housing $83,200 $52,600 $57,300 $58,700 $58,500 $65,800 $69,400 7' $52,600 Number of Housing Units 7909 10309 9552 9997 1 9923 15105 14926 3 1 11777 'Indicates tie Sources: U.S. Census Bureau Yahoo /Monsterdata.com 1�1 ICI y L-1 ►'A EXHIBIT M HISTORY OF SEPARATIONS, EMPLOYEES OF THE PARIS FIRE DEPARTMENT (1997 - 2002) Total ## of To Another Separated for Separations Retirees Changed Careers Fire Dent. Other Reasons 10 2 4 2 2 VI. EXHIBIT N ADDITIONS OF PERSONNEL TO PARIS FIRE DEPARTMENT (BEGINNING NOVEMBER, 1997) Civil Service competitive exams were conducted by the City of Paris Civil Service Commission beginning in November, 1997, to fill nine (9) new positions as well as to fill nine (9) separated positions in the Paris Fire Department, or a total of eighteen positions. The nine (9) new positions were added in conjunction with three new fire stations since 1995. There was one (1) additional separated position filled in 1997 before the November 1997 exam, for a total of ten (10) separated positions filled and nineteen (19) total positions filled. The results of the competitive examination process are summarized below. For the latest exam, 89 % of candidates passed; subject to interview, agility exam, and background checks, the City continues to get an ample pool of qualified candidates seeking any available position in the Paris Fire Department. Exam Dates # of Open Positions # of Candidates Candidates Per Position % Passing Exam Nov., 1997 2 102 51 93% Dec., 1998 7 101 14 95% Jan., 2000 4 96 24 (32)* 97% March, 2001 5 56 11 (28) ** 89% * There were only three (3) positions open at the time of the exam; 32 is the number of candidates per position at the time of the exam. ** There were only two (2) positions open at the time of the exam; 28 is the number of candidates per position at the time of the exam. EXHIBIT O CAPITAL EXPENDITURES, PARIS FIRE DEPARTMENT 1 (1011196 to Present) Total, new buildings, equipment, and vehicles: $4,457,428 01 = general fund 40 = Certificates of Obligation 1 Includes vehicle $23,110 2Includes vehicles $39,379 (2) 3 Includes vehicles $52,084(2) 4 Includes vehicle $19,600 3Includes vehicle $20,559 Stations Trucks Other 9 -30 -97 (01) $ 0 $ 0 $92,046' (40) 729,628 968,258(3) 152,646 9 -30 -98 (01) 109 p 110,347 (40) 1,027 p 1,,500 500 9 -30 -99 (01) 51,950 619,855 106,278 3 (40) 0 0 0 9 -30 -00 (01) 303,137 0 68,660° (40) 0 . 0 0 9 -30 -01 (01) 985,751 p 116,0515 (40) 0 0 0 (9- 30 -02) (01) 118,804 0 36,431 (40) 0 0 0 $2,190,306 $1,588,113 $679,009 Total, new buildings, equipment, and vehicles: $4,457,428 01 = general fund 40 = Certificates of Obligation 1 Includes vehicle $23,110 2Includes vehicles $39,379 (2) 3 Includes vehicles $52,084(2) 4 Includes vehicle $19,600 3Includes vehicle $20,559 EXHIBIT P 7 -18 -2002 MEMORANDUM TO: COUNCIL SUB - COMMITTEE AND STAFF FROM: GENE ANDERSON, FINANCE DIRECTOR SUBJECT: FIRE DEPARTMENT COMPENSATION I have reviewed the letter from the International Association of Fire Fighters dated August 21, 2001. The letter conditioned its comments with the following statements. 1. "The primary objective of a local government is to provide services to its constituents within budgetary constraints..." 2. "We would also like to see revenue increasing over time and sufficient to meet expenditures, a manageable level of debt, and the other funds in good enough condition so the General Fund, which is the fund of last resort, is unlikely to have to cover the expenses of those other funds." 3. "...we usually cannot comment on priorities or on the appropriate level of funding for particular departments or projects because these are political decisions and are unique to the jurisdiction." 4. "...these [financial] statements do not always tell us everything." 5. "The financial reports usually tell us little about local or regional economic conditions..." 6. "...we cannot say with absolute certainty that the city does or does not have sufficient resources..." 7. "...cities and counties must keep a certain level of fund balance to maintain a favorable bond rating. A favorable bond rating is desirable because a high rating enables it to borrow money at a lower interest rate." 8. "It is also simply good management to maintain a reserve to cover emergencies and unforeseen circumstances." I would agree with the above comments. The writer's other comments are so general in nature and contain so many qualifiers that they are of little value. The following points concerning this letter should be.noted. 1. The most recent financial data used is almost two years old (September 30, 2000). 2. The eight comments noted above support the City of Paris position. 3. I noted five errors in the financial data extracted by the Association. Addressing the writers contention that the City can afford to fully grant the fire fighters' petition request, I have the following comments. 1. The City's general fund balance decreased $1,503,094 in the year ending September 30, 2001. Fund balance is projected to decrease again in the year ending September 30, 2002. EXHIBIT P (continued) 2. The City's Isset to liability ratio decreased by 44.5% in the year ending September 30, 2001. Total assets decreased by $677,895 and total liabilities increased by $825,199. 3. Cash coverage of general fund balance decreased from 32.4% to 18% for the year ending September 30, 2001. General fund cash balance decreased by $4,308,791. 4. Actual expenditures for fiscal year 2000 -2001 exceeded actual revenues by $2,470,698. 5. Total fund balance as a percent of expenditures dropped from 35.6% to 23.2% for the year ending September 30, 2001. 6. The appropriate fund balance level is related to more than the level of expenditures. Emergency contingencies, economic conditions, and other factors must be considered. The 5% rule quoted in the letter also states "...a larger balance may be warranted, particularly if budget revenue and expense are economically sensitive or otherwise not easily forecasted." The letter also states "... it seems reasonable... that a municipality would want to maintain a higher reserve level in uncertain financial circumstances, when the likelihood of drawing on the balance is greater." All of the general fund's primary revenue sources (property taxes, sales taxes, and franchise taxes are sensitive to economic fluctuations. That certainly describes our current situation. 7. The letter states that the City's credit rating is A2. Moody's Financial Service is quoted discussing this rating " Factors giving security to principal and interest are considered adequate, but elements may be present that suggest a susceptibility to impairment some time in the future." Translation: the City is not a bottomless pit of money. In addition to the above updated financial information, the following factors should be considered. 1. The cost of the petition in the first year alone would be $507,627. This amount would increase each year. 2. Much of the general fund balance decrease was anticipated and planned for by management. In order to avoid a tax rate spike, general fund balance was allowed to grow in anticipation of the $2,609,419 spent on Fire Department stations and equipment. 3. Revenues for 2001 -2002 are expected to fall $762,318 below budget. Increased property tax values may provide some relief, but overall projected revenues for 2002 -2003 are expected to be approximately $500,000 below current year budget. 4. A certificate df obligation issue of over $6,000,000 is expected in September 2002 adding $485,000 to annual debt payments. 5. Any general fund balance lower than amount equal to two months operating expenditures is fiscally irresponsible. A three -month operating expenditure fund balance is preferred. Justification for this can be seen as recently as the December 2000 ice storm, which caused the City to spend approximately 1.7 million dollars that had not been budgeted. Even though partial reimbursement of these funds was available, the money had to be on hand to deal with the immediate situation. EXHIBIT P (continued) Unlike a business or individual, the City cannot just go to the bank and borrow money. Legal restrictions come into play. 6. Staff discussions with the City Council about the revenue short fall in the Water & Sewer Fund should lead to steps to address that issue in the near future. If not, the General Fund might have to bear part of that problem. In summary, the financial factors cited in the Association letter have all declined in the last two years. Even if they had not, fund balance alone is not a proper basis for initiating a reoccurring expense. Reoccurring revenues must equal or exceed all expenses to maintain or improve financial condition. It would be difficult if not impossible for the City to grant this pay increase, recoup its revenue short falls, compensate all of its employees, build the new Police facility, and provide reasonable levels of municipal services. Drastic measures including service reductions and employee lay offs would probably be necessary. It is easy for those who do not bear any of the responsibility to the public for managing the City to say they should have more. But those that bear the responsibility must have the final say. EXHIBIT Q August 21, 2002 MEMORANDUM TO: MICHAEL E. MALONE, CITY MANAGER FROM: GENE ANDERSON, FINANCE DIRECTOR SUBJECT: UPDATED REVENUE ESTIMATES Per your request, I have updated my preliminary revenue estimates. GENERAL FUND 1. Current property taxes are projected to be $6,060,000. That is $60,890 above budget projections. 2. The one and the 'A cent sales taxes are projected to be $4,490,066. That is $509,934 below bude == 3. TXU Gas franchise tax is projected to be $308,806. That is $27,194 below budget. 4. TXU Electric franchise annual tax payment was received today in the amount of $1,662,855. TL=— $66,467 over the budgeted amount. 5. Interest revenue is projected to be $160,000. That is $90,000 below budget. 6. Brush fees have not materialized. Current budget calls for $90,000. Actual is expected to be only $7,000. WATER & SEWER FUND 7. Sewer charges are projected to be $3,880,325. That is $179,675 below budget. 8. Industrial surcharges are projected to be $175,000. That is $50,000 below budget. 9. Water sales are projected to be $5,907,946. That is $360,304 below budget. X1. EXHIBIT R WAYS TO ABSORB THE REQUESTED PAY INCREASE 1. +01 Reduce the City's reserve fund. A. Amount of reserve roughly equivalent to two months worth of expenditures maintained for the last several years. 01 -02 $3,384,898 00 -01 $3,420,017 99 -00 $3,288,027 98 -99 $3,187,924 97 -98 $2,746,406 B. Utilize to offset unanticipated or disaster related expenditures (example, December, 2000 ice storm) (see attachment). • interest income is revenue source • build up in excess of 2 -3 months for projected capital costs to prevent spike in tax rate C. Amount of reserve (actual and budgeted), including increased amount to offset cost of constructing and equipping new fire stations. Actual 9 -30 -01 $3,615,193 9 -30 -00 $5,686,661 9 -30 -99 $5,289,009 9 -30 -98 $5,631,578 Budgeted 9 -30 -01 $3,600,000 9 -30 -00 $4,582,854 9 -30 -99 $4,398,634 9 -30 -98 $3,868,165 Reduce budgeted expenditures for the remainder of the department and for other City departments. A. Cut capital costs. B. Cut salaries and wages. 3. Reduction in workforce. 4. Raise taxes. EXHIBIT S RECENT USE OF RESERVE FUND: Total cost incurred by the City of Paris for December 2000 Ice Storm (approximate): $1,700,000. 2. Amount of reimbursement to the City (approximate): $1,500,000. Approximate shortfall following reimbursement following reimbursement: $200,000. 4. Reimbursement has been based on a 100% reimbursement less disallowed cost. Typical reimbursement from FEMA for this kind of event would have been 75 % reimbursement by FEMA, or a reimbursement of $1,275,000, again less ineligible and disallowed cost of $200,000, or $1,075,000. Under ordinary circumstances, the City would have experienced a $625,000 shortfall for this kind of event. FACTS ABOUT FIREFIGHTER PAY BETTER OFF CITY FIREFIGHTER BASE PAY MEDIAN INCOME OF CITY VARIATION CORSICANA $31,092 $27,203 +$3,889 PARIS $30,780 $27,438 +$3,342 TEXARKANA $31,188 $29,727 +$1,641 GREENVILLE $35,952 $34,606 +$1,346 WORSE OFF SHERMAN $34,056 $34,211 -$ 155 DENISON $30,264 $31,474 -$1,210 MARSHALL $27,972 $30,335 .$2,363 WAXAHACHIE $39,276 $43,213 -$3,937 EFFECTIVE SALARY AFTER COST OF LIVING ADJUSTMENT CITY SALARY COST OF LIVING INDEX EFFECTIVE SALARY WAXAHACHIE $39,276 + .91 = $43,160 PARIS $30,780 + .84 = $36,642 GREENVILLE $35,952 + 1.00 = $35,952 DENISON $30,264 + .85 = $35,604 SHERMAN $34,056 + 1.00 = $34,056 CORSICANA $31,092 + .95 = $32,728 TEXARKANA $31,188 + .99 = $31,503 MARSHALL $27,972 + .88 = $31,786 USING INCOME TO BUY MEDIAN PRICE HOUSE * CITY SALARY MEDIAN VALUE HOUSE YEARS OF SALARY TO BUY GREENVILLE $35,952 $58,700 1.63 PARIS $30,780 $52,600 1.71 DENISON $30,264 $52,600 1.74 CORSICANA $31,092 $57,300 1.84 SHERMAN $34,056 $69,400 2.04 MARSHALL $27,292 $58,500 2.09 TEXARKANA $31,188 $65,800 2.11 WAXAHACHIE $39,276 $83,200 2.12 * MAY NOT BE DIRECTLY APPLICABLE AS 71% OF PARIS FIREFIGHTERS DO NOT LIVE IN PAR /S