SHELBY — City lawmakers want to combat rising overtime costs at the Shelby Fire Department.
Fire Chief Mike Thompson says he does, too.
On March 17, Shelby City Council unanimously approved the city’s budget of nearly $42.5 million for 2025. Initially, concerns with the proposed budget were raised by Thompson — who asked council to reconsider passing the legislation that evening.
Most of the chief’s concerns stemmed from the department’s wage line in the city’s general fund.
In 2024, about $1.15 million was allocated in that specific line versus $1,020,000 in 2025 — about a $130,000 difference. However, in the fire income tax fund, the wage line increased from about $300,000 in 2024 to $720,000 this year.
Clarifications were made in the days which followed the meeting and the chief said discussions are continuing with the city administration.
“We’re working on solutions (and) working on reducing overtime,” Thompson told Richland Source on Wednesday. “We’re continuing to discuss things.”
Brian Crum, the city’s finance director, said he asked the department to reduce its overtime by $200,000 in order to keep wages balanced between the general fund and fire income tax fund.
Overall, the department’s budget increased this year, just not as much as it would like, Crum said.
“Wages were increased to accommodate the raises that they want and the additional staff that they’ve brought on,” he said. “They were just not increased enough to also cover the same amount of overtime that they accrued during 2024.”
What contributes to rising overtime?
Last year, overtime totaled $280,000 for the fire department, Crum said.
Several factors play a role in the rising amount of overtime.
Next month, more than half of the department’s staff will have earned its maximum vacation time, the chief said. Additionally, six of the department’s 17 staff members, including Thompson, are eligible to retire at any time.
“We work five on a shift and anytime someone takes off that’s overtime,” Thompson said. “We’re looking at some ways we can curb that and we’ve done so working with administration on that.
“We’re trying to get that number lowered down and still provide the same level of service with five people (on duty),” he said.
Long-term injuries also contribute to increased overtime costs (something the department experienced last year) but also situations the department can’t control, the chief said.
The department did create a floater position — which works with all shifts to fill any gaps.
In the event of a long-term leave of absence, the floater assumes the position until the firefighter can return.
Overall, Crum said wage expenses for the fire department have nearly doubled in the past five years.
Below is a graph showing the department’s rise in wage expenses from 2019 to 2025. This information was obtained by Richland Source through a public records request.
EMS takeover and fire levy
Shelby Fire took over all emergency medical service transport Oct. 13, 2022, ending decades of outsourcing ambulance services to a private contractor.
By July 2023, the department added three full-time employees and an ambulance.
Increased staffing levels also brought accommodation issues at the station, Thompson said in July 2023.
Several factors led the city to ask its voters to approve a 5-year, quarter-percent income tax levy — which passed by a margin of 337 votes in November 2023. It generates about $500,000 annually for the department.
In July 2023, Shelby Mayor Steve Schag said taking back EMS transport will provide a revenue stream, but to expect a certain “initial lag time.”
Thompson said the takeover happened a bit earlier than planned, but still sees it as a good thing for the community.
“I think we provide a great level of service to our citizens,” he said. “It’ll work through here.”
Ultimately, the goal for the department is to add a sixth — or seventh — person per shift, with a five-man minimum, once it can be afforded, the chief said.
“That way, if someone took off, they’re working for straight time (not overtime),” Thompson said. “We’re just not there yet… That’s the way we’re headed, but it will be some time.”
Shelby mayor issues statement
After concerns with the budget were initially expressed in the days after council’s March 17 meeting, Schag released a statement hoping to bring more understanding to the decision.
The mayor said the city administration and city council take “very seriously the responsibilities we have as public servants and stewards of the resources under our control.
“In my opinion, the biggest challenge we face is overtime costs,” Schag said.
“Chief Thompson has pointed out that we have a staff that is populated with personnel that are at the maximum for vacation days and have considerable amounts of compensation time built up which they have earned over their long careers.”
For now, the mayor said overtime hours will be monitored, but emphasized no reduction in staff has been made at the department by the administration or council.
In fact, funding for the fire department has increased this year “in virtually every line item,” including wages and benefits, according to the mayor’s statement.
“As a result of the recently negotiated wage adjustments with our firefighters, we have increased wages and pension payments this year by some $186,000 (wages $150,000 and pension payments another $36,000),” Schag said.
“Be assured, (there) will be ample funding to cover our recent contractual agreement.
“I will continue to work with our finance department, city council and chief Thompson (and fire department representation) in proposing long-term solutions, so that our community continues to experience very capable and professional care from our first responders — both police and firefighters,” he said.
Editor’s note: This story was updated at 4 p.m. on Thursday, March 27 to correct the total cost of overtime of the Shelby Fire Department in 2024. The corrected figure was supplied by Shelby Finance Director Brian Crum.