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City Council hears first of two competing plans for ambulance service

By Kris Hilgedick
khil@newstribune.com
Published: Tuesday, August 12, 2008 4:37 PM CDT
Jefferson City Council members on Monday contemplated a plan that would allow the city Fire Department to take over the operation of ambulance service within the city, in an effort to meet a hospital-recommended timeline.

Citing financial losses, hospital officials have said they'd like to be out of the ambulance business by January.

The city's proposal would require city officials to raise property taxes.

The plan met with doubt from Regional West Fire Chief Jack Brade and Western District Commissioner Chris Wrigley, who said the county plans to reveal an alternate proposal on Thursday morning.

Monday night's meeting was the council's first look at the mayor's budget proposal. The ambulance conversation looms because city officials face a state-imposed deadline requiring them to either adjust their tax rates by Sept. 1 or wait two years.

Landwehr said: “Bottom line, I'm concerned about the community's safety. We have a moral obligation to provide this vital emergency service and have a viable plan in place.


“We felt it was necessary to be in a position to provide this service.”

Currently the city's property tax rate is 46 cents per $100 of assessed valuation; but officials may raise it to the 54-cent, voter-approved “ceiling.”

The plan is divided into two parts. The first offers a plan for ambulance service within the city; the second part would serve the rest of Cole County.

Under the city's plan, the fire department would provide Advanced Life Support (ALS) service within the corporate city limits. Five ambulances would be stationed at city facilities and staffed by a combination of paramedics and EMTs.

Jefferson City Fire Chief Bob Rennick said the new system would be patterned after Capital Region's model.

The city generates about 7,000 calls a year.

The plans also includes ideas for a “County-Wide Cooperative Ambulance Service,” providing residents the level of service they have now.

How to pay for it would be determined by the fire protection districts and county government.

Serving the rural areas is expected to cost $1 million annually, but collections are estimated at $600,000.

Two ambulances would be stationed in the rural areas (currently trucks are at Apache Flats and Brazito) and a third would be held in reserve.

But devising a source of revenue - to cover an $800,000 shortfall the hospital says it incurs - has been a source of consternation for local government leaders.

Most ambulance providers across the state and nation say private entities no longer can make a go of the ambulance business based on income alone; some sort of governmental subsidy is necessary.

City Administrator Steve Rasmussen pitched a plan that would combine two basic pools of funding: billing for service and property taxes.

City financial officials believe a five-cent property tax would generate adequate funding to keep an ambulance service operational in the city limits. But eight cents may be necessary - at least in the beginning - to cover the start-up of a new venture.

“Three cents would help offset capital costs,” he suggested.

Rasmussen's plan includes asking Capital Region if the city can purchase some of their ambulances.

“The sooner we buy them, the cheaper they are,” he reckoned. “Because you (the hospital) stop losing money as soon as you give them to us.”

City officials estimate a five-cent property tax increase would cost the owner of a $120,000 home 95 cents a month.

But Fifth Ward Councilman Dan Klindt would not support a property tax increase, favoring a sales tax instead.

Under the city's plan, elected officials could provide ambulance coverage for the community without approaching the voters.

Under other plans being circulated, the voters would have to be educated and persuaded to accept a new tax.

When other ambulance districts have been organized in Missouri, they have always started with a 30-cent property tax levy.

After Monday's meeting, Brade favored a countywide system. “My biggest concern is the community has a say in the level of community service they receive,” he said.

He also worried about the possibility of duplicating service with separate systems. Brade believes hospital administrators could be persuaded to give community leaders more time. “As long as they see progress being made,” he said.

Ed Farnsworth, president of Capital Region Medical Center, said the January 2009 date is “not a deadline.”

Instead it was a “reasonable” date set by those who realized it was “going to take some time to find a solution.”

“We really would like (community leaders) to find a solution, but we're not going to leave them in a lurch,” he said.

Farnsworth added he is pleased the city may attempt a solution by 2009. “And the county - it's important the entire area's needs are met,” he said.

Farnsworth worried a voter-approved ambulance district would take at least a year to be put in place, even with a February election. Having a new entity in place by January 2010 or even 2011 wasn't unrealistic, he said.

But would the hospital wait that long to give voters time to weigh in?

“Yes, if it's the desire of the community,” Farnsworth added.

But Rasmussen said one disadvantage of a countywide system is that it is more expensive to serve residents in the remote parts of the county. (The runs are much longer, consuming more fuel and staff time.)

Rasmussen worried that city payers may end up subsidizing rural payers, if operators of the system try to establish the same response times for urban and rural residents.

Wrigley said the city's plan “was not my first choice.”

“From the get-go, it's always been thought this would be a countywide operation,” he said. “I think there's another way, other than an ambulance district.”

But on Monday afternoon, he would not offer details about it.

Wrigley said on Thursday, county commissioners would share a plan that would not include a 30-cent property tax nor a waiting period. “We think we have a solution for that too,” he added.

“We're trying to figure out the best way to provide the best service to the county as a whole,” he said.



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Thanks.

truthbetold wrote on Aug 26, 2008 5:39 PM:

" " I think intheknow needs to get in the know. First of all this isn't a forum for you to bash people, I assume you know kc911foryou and I think that it is very immature that you belittle the person in a forum like this. You need to do some growing up before your parents let you on the computer again" YOUR WORDS BONDAGE BOY Aug. 23 2008

Bondage Boy, I think you should heed your own advice. This isn't a forum to bash people. I don't think you should be bad mouthing the poor city firemen (in your other little comments from other stories), its really not their fault that you are upset. "

bondage_boy_386 wrote on Aug 23, 2008 9:22 AM:

" I think intheknow needs to get in the know. First of all this isn't a forum for you to bash people, I assume you know kc911foryou and I think that it is very immature that you belittle the person in a forum like this. You need to do some growing up before your parents let you on the computer again. Second of all, do some research before you talk about taxes. Once an ambulance district is formed it will be the job of the district board to maintain the tax and put it on the ballot for the voters to raise or lower. The county commission will have nothing to do with it. Look at how other districts operate. "

intheknow wrote on Aug 20, 2008 9:48 PM:

" Hey KC911FORYOU, why aren't you still working in the EMS Field???????

The way the County is approaching this is if they want a Dist in the next two years is a joke. Stop and think about how many levels of Gov your going to have involved. The County Commission, because they'll control the 1/2 cent sales tax and the Dist. will have NO control over any funding. That's a ideal failure speically with the a few of the current commissioners that we have.... "

boscoe wrote on Aug 15, 2008 1:22 PM:

" kc911 makes some very good points. I like his thinking.

Make it all sales tax paid. Get rid of property taxes.

Set up an independent political subdivision and let the board run it. Tying it to city hall is a very bad idea, and tying it to county government isn't good either.

BondageBoy makes some very good points too. The city has already proven time and time again they are not a good steward of our money, so why give them more? They need to get a handle on their current responsibilities instead of getting more. "

kc911foryou wrote on Aug 15, 2008 1:07 PM:

" In subsequent years the personal property tax for the district is reduced by an amount equal to 50% of the ambulance sales tax revenue collected. This process continues. Each year that the sales tax exceeds the previous years revenue 50% of the amount in excess of the previous year is deducted from the property tax levy. Eventually the sales tax can retire the property tax charge and fully fund the district. That's why it is so popular.

Ambulance districts are popular. Cole County is surrounded by them. The sales tax funding is fairly new but every dsitrict that's used it has improved their infrastructure and became a magnet for quality EMT's and Medics looking for an EMS job with a good salary and benefits. "

kc911foryou wrote on Aug 15, 2008 12:54 PM:

" I'm writing again to address the sales tax funding mechanism and why it is so good.

When you first start an ambulance district the people within that district get a special tax added to their personal property taxes. The maximum rate is set by the voters.

Once the district is formed, the board may decide to put a sales tax issue before the voters. If that passes then the property tax and the sales tax are in place. In the first year that the sales tax is in place the district gets 100% of both taxes. That's a windfall that most have used to retire capitol debt. The next following year is when the local tax payers start getting their break. MORE..... "

bondage_boy_ wrote on Aug 14, 2008 8:57 PM:

" Furthermore, Jefferson City Fire lacks sufficient personnel to respond to two structure fires at the same time. How are they going to man an ambulance service? Having the City of Jefferson and our fire department take over the ambulance service just doesn't make sense and it should be brought to the voters. I agree that with an ambulance district and sales tax that everyone in the county and city would pay equally and everyone who used the service who lives outside of Cole County would be helping to fund it. This seems more fair than either cutting services to the county or forcing the citiznes of Jefferson City to bear the full cost of a serivce that the entire county uses. "

bondage_boy_386 wrote on Aug 14, 2008 8:31 PM:

" As a concerned citizen of the city and cole county I am worried about the city taking over the ambulance service. I think it would be in the best interests of the people of cole county to have a county wide ambulance service. First of all from what I hear Jefferson City is more concerned with building a convention center than a new fire station 2. Did you know that when the sewer backs up at the station it runs into the HVAC system? How can we expect the city to take care of our most dire health care needs when we can't even get them to take care of their current employess sanitation needs. "

kc911foryou wrote on Aug 13, 2008 10:30 PM:

" Moreover, the team developing options for the service have failed to tell you that beginning in the second year an ambulance district can put an issue before the voters to impose a sales tax to help underwrite the cost. Eventually, the sales tax could, and probably would, retire the property tax on city/county residents and the service will be subsidized by anyone in the county who makes a retail purchase. That will spread the cost beyond the local tax payers and make the system at least partially user-pay by collecting sales tax from non-residents who come here and then need our EMS service. Please look at this model in earnest. Capital Region is willing to stay while we put a district together. "

kcforyou wrote on Aug 13, 2008 10:21 PM:

" The city plan is wrong. However, the mayor is correct that we need to cover the city. Multiple times I have commented that a county wide ambulance district is the best way to handle this dilemma. And Ed Farnsworth has comitted Capital Region to continue the service if the community prefers that model. Look around out city and count the number of successful ambulance districts who were failing services prior to becoming an ambulance district. A district is a separate political subdivision and is managed by an elected board of directors. It is beginning to sound like we're more interested in who holds the power than we are about the best solutioon to this problem....more "

gofish wrote on Aug 13, 2008 8:16 AM:

" "Rasmussen's plan includes asking Capital Region if the city can purchase some of their ambulances.The sooner we buy them,the cheaper they are,he reckoned. Because you (the hospital) stop losing money as soon as you give them to us.

I reckon he oughta look up the word depreciation.Besides, is the illusion of cheaper better when you're talking about saving lives?

I'm sure this will be a heated debate, but either way, rushing into a September 2008 date without a clear business plan is a bad idea. I think a more structured business model needs to be explored before a million dollar decision is made.

The county is paying $12,000 to study an unneeded roundabout, and I think that's in Wrigley's area. "


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