The Ottawa Fire Services 2011 Draft Budget
The Ottawa Fire Department expects revenue of about $688,000 in 2011 from various service levies. Not much, but it all helps. The balance of required income is extracted from the taxpayer.
The operating expense for 2011 is projected at $132,645,000. Employee expense represents $119,190,000 of that expense, or 90 percent.
The Ottawa Fire Department is a “special” case because it reflects the issue of “public employee expense”.
In the year 2001, the fire department expensed $68,250,823 in salary, wages and benefits to 949 employees. That would make the average annual employee cost $71,919.00.
In 2009, there were only 983 employees and a total of $104,192,000 in employee expense. That would make the average cost per employee at $105,994.00
In 2011, employee costs are projected at $119,190,000 with the number of employees increasing to 1,048. That would make the average cost per employee at $113,731.00.
There are a few points to make here.
From the year 2001 to 2010, the number of employees in the Fire Department increased from 949 to 1,003. That is a percentage increase of 5.7. I like this number because it reflects the real, more conservative growth numbers in population during the same period. My figure for growth in population in the City of Ottawa during the 2001-2010 period is liberal 10%.
If you look at it in a different way, one could wonder if the Fire Department isn’t a “closed shop”.
Let’s look at the employee expense as really, with employee costs at 90 percent of total expense, that is all you need to analyze in this department.
Because the number of employees has remained relatively stable during the period 2001-2011, it is easier to more accurately assess the real increase in cost per employee. This happens to represent a 67 percent increase in individual employee costs from 2001-2011. You would never have your salary and benefits increase like this in the private sector.
The 67% takes into account the additional 99 employees hired or to be hired throughout 2001 to the end of 2011. So the 67 percent increase in individual employee expense is probably low. The figure for senior staff (and they are mostly senior staff) is in the range of 75 percent.
Inflation over the same period was approximately 27 percent. I guess you know where I am going with this. You can say it this time rather than me..
The reality: SALARIES ARE TOO HIGH, BENEFITS AND PENSIONS ARE TOO GENEROUS AND THE WORKING CONDITIONS ARE PRETTY GOOD, ALL IN A CLOSED SHOP.
The Fire Departments around Ontario use union negotiating in one city to increase salaries and benefits in another city. It is a game we can no longer afford to play. Just wait until you hear about the next demand regarding shift work.
Do you know what the average individual annual salary is in Ontario? Find out. You will be shocked!
Bill O’Malley
