CFD turns financial problem into surplus

It’s not exactly a rags to riches story. But in today’s economic climate, where concerns over the national debt crisis has led to the first credit downgrade in U.S. history, even the smallest examples of fiscal recovery can offer hope for a brighter future.

Photo courtesy of Canton Fire Department

At the local level, the Canton Fire Department is one such case. Earlier this year, Canton Fire Chief Charlie Doody had a serious budget problem, but with the help of an emergency cash infusion, he was able to turn a deficit into a sizable surplus, which was later used to help out other town departments.

Chief Doody said his budget problems were the result of a “perfect storm” that began brewing early last winter, when a combination of staff injuries, a military deployment overseas, and severe winter weather forced him to rely on a massive amount of overtime to staff the two stations.

In December and early January, Doody informed selectmen of the problem, and selectmen in turn notified the Finance Committee of the critical need for an emergency transfer of $113,000 from the town’s free cash account.

This transfer allowed the Fire Department to have enough personnel to keep a second ambulance running. Not only did one ambulance have residents concerned, but the town was losing revenue to the communities that brought their own ambulance to service Canton’s requests.

Town Finance Director Jim Murgia said the formula Doody used was simple: reduce overtime, bring the injured firefighters back to work, and reduce expenses wherever possible. In six months, the Fire Department produced a surplus of nearly $77,000, of which $46,000 was used to offset shortfalls in other municipal budgets.

Doody said he first reduced non-emergency staffing, curtailed overtime, and stopped ordering supplies such as tools, hoses and uniforms for a period of time. In time, his injured firefighters returned, while three other firefighters (John Farrington, Barry Ronayne and Paul Close) retired and one firefighter left the force unexpectedly. Another firefighter, John Tsohandaridis, who is serving in Iraq, is due to return to Canton November 1.

Two new firefighters will be appointed September 1, and Doody said the current budget should be in line to support his staff, provided there is not another rash of injuries.

“Right now we are on track,” he said, “but I have learned in this business, you can’t predict the future and what might happen.”

He appreciates the support that the selectmen and Finance Committee showed him, and he is happy to have righted the financial course of the department while continuing the level of service that the community expects.

“I also know that, no matter what, selectmen and the residents want two ambulances running,” said Doody.

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Posted by Mike Berger on Aug 10 2011. Filed under News, Police & Fire. Both comments and pings are currently closed.