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Presentation of the Metro Fire and Rescue 5-year Forecast
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Submitted by:
John Ruggini
Department:
Finance
A. Issue
To support on-going union contract negotiations and the development of Metro Fire and Rescue's organizational structure it is helpful to understand long-term revenue and expenditure trends especially as they impact the Cities of Wauwatosa and West Allis' ability to continue to qualify for Innovation Grant payments.
B. Background/Options
Revenues and expenditures from both cities' fire departments were grouped into like-categories (e.g. wages, overtime, health insurance, state shared taxes, ambulance revenue, etc) and forecast assumptions were developed for each category based on historical data or known information such as the state budget. Those assumptions are applied to the 2026 Budget figures. The 2026 Budget was adjusted to include overhead charges allowed by the Department of Revenue as part of Metro Fire's base budget for Innovation Grant purposes. It is important to emphasize that the forecast is policy neutral as it assumes the same services are provided with the same number of personnel in the same positions and delivered in the same manner. In other words, it assumes both cities fire departments would continue to operate exactly the same as today, just with a combined budget. It assumes no change in current union and non-represented salary levels other than cost of living adjustments.
This model is for planning purposes. It is not meant to suggest that the Board will not make any service changes, compensation adjustments through negotiations, organizational restructuring or other changes necessary to qualify for all five Innovation Grant payments.
Below is an overview of key assumptions and sources for forecasted information.
Base Assumptions
* The model backs into the municipal charges as the net cost (Operating Expenditures - Departmental Revenues).
* Inflation assumed to be 2.4% in 2027 and remains at 2...
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