Title
An update and discussion with the Hudson City Council regarding the Fire & EMS Subcommittee Funding and Recommendations.
Brief Description: The Council Subcommittee and Administration will discuss their recommendation for funding Fire and EMS over the next 5 to 7 years.
Body
Legislative History
25-0054 Discussion of the City’s Updated 2025-2029 Five Year Plan - 4/22/25
25-0045 Discussion on the Fire & EMS Recommendations of the Council Subcommittee - 4/8/25
25-0024 Fire/EMS Study Follow-Up: Consultant Response to Council Questions Brief Description: K2M Design has provided the attached materials to respond to Council's questions. 2/18/25
25-0010 Fire and EMS Staffing and Facility Needs Study Final Report by K2M Design and Matrix Consulting. Brief Description: The K2M Design and Matrix Consulting Group staff will be giving a detailed presentation on their final report for the Fire - 1/28/25
24-0103 Fire and EMS Staffing and Facility Needs Study Project Update and Discussion - 10/22/24
24-102 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES CONTRACT WITH K2M DESIGN FOR THE COMPLETION OF A COMPREHENSIVE FIRE AND EMS STAFFING AND FACILITIES NEEDS STUDY FOR THE CITY OF HUDSON; AND DECLARING AN EMERGENCY - 9/3/24
24-0047 Fire and EMS Discussion with Council Brief Description: This meeting will be a brief review of Hudson Fire and EMS current operational models as well as an updated review of a combined full-time Fire and EMS model - 3/14/24
Purpose & Explanation
Purpose:
This report outlines the Council Subcommittee and Administration's recommendation for funding the projected $1.2 million annual increase in the Fire and EMS Department budget needed, commencing in Fiscal Year 2026. This increase is a direct result of the department's transition to a hybrid staffing model and the necessary capital improvements of the fire station renovations.
Background:
The City of Hudson is proactively transitioning its Fire Department from a paid volunteer model to a hybrid system. This strategic shift aims to significantly reduce response times, aligning them with national standards, and enhance public safety for our residents.
This enhanced staffing model necessitates an increase in payroll expenditures of approximately $850,000. Concurrently, the existing Fire and EMS station will undergo critical renovations to accommodate the expanded staffing and operational needs at an approximate annual bond payment $368,000. These capital improvements will be financed through a 20-year bond payment. The combined impact of increased personnel costs and debt service for the renovations will result in an estimated $1.2 million annual needed increase in the Fire and EMS Department budget, beginning in Fiscal Year 2026.
Council Subcommittee Recommendation for Funding:
Following careful consideration and analysis, the subcommittee recommends the following approach to fund the projected $1.2 million annual increase in the Fire and EMS budget:
1. Fire Fund Balance Utilization: Allocate $600,000 annually from the existing Fire Fund balance. Currently the fund has a very healthy balance of $8 million in reserve.
2. General Fund Transfer: Allocate $600,000 annually from the General Fund, to be formally transferred from the general fund at the annual budget discussions each fall.
The General Fund transfer will be facilitated through adjustments to the existing capital fund projects. It is important to note that these capital projects will NOT be eliminated but will be postponed to accommodate this critical public safety investment.
Flexibility and Ongoing Review:
To maintain fiscal agility, the Administration will conduct a mid-January review of any excess funds received during the prior fiscal year. This review will be presented to City Council for discussion, offering the opportunity to utilize a portion of these excess funds in lieu of drawing down the Fire Fund Balance or adjusting capital projects, should conditions allow.
Impact and Future Considerations:
This recommended funding strategy has been purposely designed to avoid an increase in property taxes or income taxes to our residents.
It is important to acknowledge that this proposed plan, while effective for the medium-term, is not intended as a long-term solution to the funding deficit. The reliance on fund balance utilization and capital project adjustments cannot be the plan indefinitely. Therefore, it is imperative that City Council explore and identify sustainable, alternative funding sources for the Fire and EMS Department within the next five (5) to seven (7) years, and we recommend that this fund be reviewed by future Councils each fall during budget discussions.
(See attachments on proposed capital budget adjustments)
Timing Considerations
To achieve this, the department's operational structure will evolve as follows:
• July 2025: Implementation of a daytime shift (7:00 AM to 7:00 PM) with four (4) firefighters on duty.
• Beginning 2026: Full 24-hour staffing will commence, with four (4) firefighters on duty around the clock following the completion of the fire station renovations.
Fiscal Impact
Currently Budgeted (Account #, $)
X Supplemental Appropriation Required (Fiscal Year 2026+ ; $600,000 /year transfer)
Appropriation Not Required.
Recommendation
Suggested Action
The Subcommittee and the Administration recommend that City Council approve the proposed funding strategy for the Fire and EMS Department budget increase, as outlined above, to ensure the successful transition to a hybrid staffing model, capital renovations to the building and to enhance public safety services for the citizens of Hudson.
Submitted by,
Thomas J. Sheridan, City Manager
Jeff Knoblauch, Asst. City Manager - FD
Brian Griffith, Asst. City Manager
Jerry Varnes, Fire Chief
Fire & EMS Subcommittee (N. Kowalski; K. Heater; & C. Banweg)