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Approval of a fund transfer of $216,200 to establish expenditure authority for upcoming expenditures
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Submitted by:
John Ruggini
Department:
Finance
A. Issue
The Milwaukee Metro Fire and Rescue Corporation does not have an adopted budget for 2026. A budget amendment per the “Fund Transfer” policy is required for upcoming expenditures.
B. Background/Options
The Milwaukee Metro Fire and Rescue Corporation does not have an adopted budget for 2026. A budget amendment per the “Fund Transfer” policy is required for upcoming expenditures. These include:
1. The City of Wauwatosa received a quote of $16,200 to modify its Enterprise Resource Planning (ERP) system to accommodate providing accounting and payroll support to Metro Fire when it establishes its merged operations including operating with its own employees. This will allow for the ERP system to accommodate a second entity with a separate federal tax identification number and its own bank account. This quote is based on an estimate of implementation hours required by the vendor.
2. Union negotiations include proposed complex changes to firefighter work schedules. In addition, levy limit and innovation grant limitations will limit resources available for compensation increases. Lastly, consolidating two separate pay and benefit systems will likely require trade-offs between the two communities and their respective employees. Given these complexities, it is likely that the Metro Fire Board and staff will require legal and consulting support during 2026 as part of the bargaining negotiations. This is estimated at $100,000; however, no proposals have been solicited nor is the extent of support known so this should be considered a very rough estimate. Actual cost could be less or more.
3. Dispatch options continue to evolve and change in a positive direction and it is becoming clear that a decision on how Metro Fire is dispatched could have a long-term impact on fire dispatch county-wide. This is an exciting opportunity but may also require additional consulting support to ensure all potential impacts, unintended consequences and costs and benefits are identified and evaluated. There may also be a need for additional consulting support as both departments work through the operational complexities of the merger. This is in addition to the current contract with McMahon Associates and is estimated at $100,000; however, no proposals have been solicited nor is the extent of support known so this should be considered a very rough estimate. Actual cost could be less or more
Assuming adoption of the “Fund Transfer Policy” that is proposed as part of this meeting, these are Level Three changes as they increase total budgeted expenditures thus requiring approval of the Fire Chief or President, the Treasurer and the Board.
C. Fiscal Impact
The proposed budget amendment would increase expenditures by $216,200. It is intended that the Innovation Grant would cover these costs. However, while extremely likely to be received, Innovation Grants have not yet been awarded.
D. Recommendation
I recommend approval of this budget amendment.