Problem
The mayor of Chenville faces a deficit in the coming fiscal year and has decided to consolidate several operations. One part of the solution is to close the firehouse on the north side of town because far fewer fires have been taking place there. Personnel will be laid off; the equipment will be sold. How much will the city save in nonrecurring and recurring expenditures?
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Costs
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No. of positions
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Salary
|
|
PS
|
|
|
|
Captain
|
1
|
$75,000
|
|
Deputy captain
|
1
|
70,000
|
|
Lieutenant
|
2
|
65,000
|
|
Senior firefighters
|
5
|
60,000
|
|
Firefighters
|
15
|
50,000
|
|
|
|
|
|
OTPS
|
|
|
|
Maintenance
|
|
60,000
|
|
Heat, light, power
|
|
45,000
|
|
Supplies
|
|
30,000
|
|
Travel
|
|
4,000
|
|
Training consultant
|
|
15,000
|
|
|
|
|
|
Sale of equipment
|
|
180,000
|
|
Sale of building
|
|
2,500,000
|
|
|
|
|
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Assumptions
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|
|
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Fringe benefits
|
|
25%
|