July 12, 2005 by Jaymes Butler, City Director
Thanks, I feel important to have garnered such a swift response. This is the rebuttal to the rebuttal letter from the City Manager addressed to President Rice and sent to the Mayor, City Council, and every member of the Sacramento Fire Department. I too am interested in sending out accurate information that is why I wrote the first article and this rebuttal. Prior to preparing for this latest round of negotiations and eventually arbitration, Local 522 had trusted the City of Sacramento much like all the other locals when it gave it’s analysis of it’s finances. The outcry of the membership, years of sub par contracts and the change of the E-Board we decided to try a different approach to negotiations. First, We used the resources of the International Association Of Fire Fighters (IAFF) by having them do a financial and geographical analysis of the City of Sacramento. Second, We hired attorney Chris Platten who came highly recommended by CPF and IAFF, and in tandem with Bill Mc Poil Local 522 Business Agent formed a solid team. Third, we were ready to use the arbitration process if we were not dealt with in a fair and reasonable manner. The points of contention in the article and rebuttal come from testimony of the arbitration hearings, Comprehensive Annual Financial Report (CAFR) and the financial analysis done by the IAFF.
Operational Rebuttal:
v Yes, it is true that the fire department is opening three fire stations in one year. Station 5 was condemned years ago with the foundation separating from the building but yet the department still ran out of it. Station 20 is falling down around them and not to mention the light rail situation that has already led to one serious accident. Station 30 was built because Local 522 put 200 firefighters in the street going door to door. Local 522 educated the public on the importance of response times when it comes to fires and ALS care. Quoting a former E-Board member “ Paying big city taxes for hill-billy services.” The public pressure forced you and the council to build Station 30. Each station was at least year late with Station 5 being two years late. How many times was Station 30 paid for? 1. The City took out a bond. 2. Developers fees paid to the county that is distributed to the city. According to testimony, the Natomas area is 50% built out so there should be another firehouse out there right now. 3. Mello-roos fees that each homeowner pays for services. 4. EMS Enterprise Fund. The funding for the staffing of Station 30 came from the EMS Enterprise Fund per the CAFR. Since the T30 isn’t in service because of lack of staffing, the city can pocket that money also. (Transcripts: Gus Vina - February 12th pgs. 923 – 957) (Transcripts: Michael McGrane – February 12th pg 958 – 996)
v It has been the policy of city management to run the fire fighters on the medics into the ground instead of reinvesting the money into EMS program. The EMS Enterprise Fund was not created to supplement the suppression budget. The department has five medics running close to 6,000 calls a year with all the medics in the system running well over the NFPA standard of 3,000 calls a year. The EMS Enterprise Fund made $3.5 million last year alone with $14.3 million unreserved fund balance per the CAFR. Three additional medics should be put into service tomorrow before the EMS Enterprise Fund ever supplements the suppression budget. (Transcripts: Michael McGrane – February 12th pg 958 – 996) (Transcripts: Dennis Kauffman – January 26th pgs. 703 – 712)
v The 4th Battalion was only placed into service because of the lack of management oversight during the fiasco of last summer. The EMS Enterprise Fund per the CAFR also funded the 4th Battalion. (Transcripts: Michael McGrane – February 12th pg 958 – 996)
v I’m not sure where the funding came from for the Internal Affairs/Professional Standards Unit but if I were to guess I would say the EMS Enterprise Fund.
v If you are aware of the considerable workload on Assistant Chief Leo Baustian why don’t you get him some help? The Primary Medic issue that dates back to the begin of our expired contract is still unresolved and intern vacation to name a couple.
v The Sacramento Fire Department is unable to place T30 into service because of the lack of staffing. The administration came to Local 522 to try and change the mandatory policy because of its inability to staff its stations. Local 522 denied their proposal based on the city’s testimony that they run the department short on purpose and put the money back into the general fund. The city also testified that the department has no recruiting or retention problem. In the city’s brief to the arbitrator they stated that the firefighters of the Sacramento Fire Department make more than what we actually make because we enjoy the benefits of overtime that the city provides. The Sacramento Fire Department has 558 budgeted FTE’s for Operations using 15 FTE per apparatus. 22 Engines x 15 FTE’s = 330 FTE’s + 12 FTE’s (Engine 3) + 9 Trucks x 15 FTE’s = 135 FTE’s + 11 Medics x 6 FTE’s = 66 FTE’s + 4 Battalion Chiefs x 3 shifts = 12FTE’s + 3 EMS1 + 3 FTE’s. The Department only has 475 actual FTE’s in the field according to the telestaff roster. The shortage comes from the administration stealing positions from suppression in the form of Special Duty (SD) positions. The SD positions are funded through overtime and help fill the much needed administrative positions in operations, training, special operations, EMS, fire prevention, communications, logistics, recruiting, EVOC, academy, fire prevention, public information officer (PIO) and technical equipment. (Transcripts: Richard McKinney – January 25th pgs. 616 – 630) (Telestaff Personnel Roster)
v The self-contained breathing apparatus (SCBA) will be funded through grants from homeland security so we can be compatible with the rest of the county.
Financial Rebuttal:
v Under Funded:
v A department the size of the Sacramento Fire Department should have a budget close to $100 million instead of the $77 million we currently have. In reality the EMS Enterprise Fund supplements the department’s budget so actually only $56 million is charged to the general fund. The EMS Enterprise Fund funded the T1 lines and the new computers were purchased through a grant. The staffing of Station 30 paid for by the EMS Enterprise Fund. The $25 million structural imbalance is a farce; the city has $123 million dollars unreserved funds for FY 03 – 04 that can be designated for anything. (Transcripts: Michael McGrane – February 12th pg 958 – 996)
v Comprehensive Annual Financial Report (CAFR):
v The CAFR is a report that is audited by an outside company. The CAFR is the annual financial statement of all the financial activities of what actually happened. It has a balance sheet that shows the assets and liabilities of each fund on the last day of the fiscal year. The CAFR has a balance sheet that calculates the fund balance as assets minus liabilities. The CAFR statements of revenue, expenditures and changes in fund balance that shows how much money came in and how much money was spent during the fiscal year. The CAFR is signed under perjury for its accuracy, it is a legal document, and the budget is not. The city budgets $1.5 million in overtime for the fire department when the actual number is well over $10 million. If the CAFR were this far off someone would be going to jail! (Transcripts: Michael McGrane – February 12th pg 958 – 996) (Transcripts: Dennis Kauffman – January 26th pgs. 703 – 712)
v Unreserved vs. Reserved Balances:
Reserved Balances: Moneys that must be set-aside for a specific purpose due to legal obligations and/or commitments (Liabilities).
Unreserved Balances: Whatever moneys that are left after reserved funds have been set aside with two sub-divisions designated and undesignated.
Designated is intended for a particular use but there is no obligation to use it for that purpose.
Undesignated is whatever is left over.
The City of Sacramento has an unreserved general fund balance of $123 million that can be designated or undesignated for anything including wages, retirement and benefits. The city manager could not find it within him to negotiate in good faith and/or compensate us fairly so we will force him through the arbitration process. The EMS Enterprise Fund has been spent on everything but for what it was intended for and has it still amassed a $14.3 million unreserved fund. (Transcripts: Gus Vina - February 12th pgs. 923 - 957) (CAFR pg. 20) (Transcripts: Dennis Kauffman – January 26th pgs. 703 – 712)
v Total Net Surplus:
The city has amassed total net surplus/fund balance of nearly $2.2 billion from FY 1999 to FY 2004. The city’s total asset to liability ratio for all fund types at the end of FY 2004 was 2.6 to 1 based on assets of $3.5 billion and liabilities of $1.3 billion. The general fund total unreserved balance from FY 1999 to FY 2004 was $399 million, as the state was going through the worst recession since the great depression the City of Sacramento was sitting pretty. The financial analysis was done by the International Association of Fire Fighters (IAFF) who have done thousands of these throughout the US and Canada. IAFF stands behind its analysis and will send a representative to testify on behalf of its accuracy. (IAFF Financial Analysis)
v City Council:
The city manager and the finance director unfortunately have misled the city council on the financial situation of the city. The finance director testified under oath that he only shows the CAFR to the city council for approval after it has been audited. He doesn’t open the CAFR and review what is inside but he did admit he shows them the budget. In meetings with council members, they didn’t know what the CAFR was, what the acronym stood for or how to read it. The council believed that the contract award will effect libraries and after school programs. The contract award will cost the city $60 million when the actual cost is around $28 million with 1% costing around $500,000, you do the math. The council doesn't know whom to believe and is debating hiring an independent auditor. Does that sound like a well-informed City Council? (Transcripts: Gus Vina – January 26th pgs. 639 – 690)
I too believe that the facts are important and this further emphasizes the need for a charter change to a Mayor-strong government. The city council who are ultimately accountable to the citizens have been misinformed and misled by the city manager that is accountable to no one. The citizens and the employees of Sacramento trust that the city management will spend its tax dollars to its greatest purpose. Misleading Local 522 and the citizens of Sacramento during the measure T campaign (utility tax) by threatening to close firehouses will never happen again. The public’s trust is important to us; Local 522 will longer be an accomplice to the lies. I look forward to the brown bag meetings on August 1st at Station 16 and August 2nd at Station 17. Please don’t cancel because I’m sure the educated members of Local 522 will have plenty of questions for you.
