Opinion
To the Editor:
Recently I obtained a copy of the Sheboygan Fire Department-Ambulance Service Financial and Activity Report for 2008. Some months ago it was reported that the ambulance service made a “profit” of $406,188. This, of course, was computed using only marginal costs and does not reflect all the costs involved in providing this service.
When one does a full cost analysis and figures personnel costs for 19 paramedics rather than just the four new hires, the “profit” becomes a deficit of $975,796. That figure is even larger when one considers that the information presented in the report does not include any administrative expenses, not one dime for training, although $2,000 was budgeted, and not one dime for the vehicle/ equipment lease, which was budgeted at $90,000. Adding the $92,000, one arrives at a deficit of $1,067,796, and we still have not included any administrative costs.
I do not know how start-up costs are being accounted for or repaid, but would, I presume, be an additional expense adding to the deficit.
And the deficit will grow even larger in 2009 when one considers, as discussed at the Finance Committee meeting on Aug. 24, that both runs and collections were down in the first six months of 2009. Personnel costs will grow by 10.5 percent in 2009 because of the pay and bonus increases. Paramedic/ firefighters received a 3 percent pay increase on Jan. 1, 2009, a 1.5 percent increase on July 1 and up to 24 paramedics received a 3 percent bonus on Jan. 1, 2009 and will receive an additional 3 percent bonus on Dec. 31 for a total of 10.5 percent.
It is interesting to know that the city of Fond du Lac separates the costs involved in providing ambulance services from their fire department services. At the Aug. 24 Finance Committee meeting, Alderman. Bohren stated that Fond du Lac figured a loss of $1,500,000 for their ambulance service in 2008. They attribute 50 percent of administrative costs to each service; 75 percent of paramedic/ firefighter personnel costs and 10 percent of all firefighter personnel costs are attributed to the ambulance service. One would hope that the Sheboygan City Council would choose to follow Fond du Lac’s model, but, unfortunately, I think that they prefer to see things through rose-colored glasses.
Dolcye Johnson,
Sheboygan
