Ambulance and fire rates for towns may change
NORWICH – At the last meeting of the Finance / Personnel Committee, members discussed changes that may need to be made to contracts with nearby towns for ambulance and fire service.
City Financial Director Bill Roberts told the committee that a five-year contract for services expired in December. The renewal process has begun, and fire protection service and first responder service will continue to be provided by the city until the contract is renewed.
Some committee members expressed concern over leaving the contract fees on par with what they had been in the previous contract. “We haven’t gotten a number on what the ambulance service costs,” Alderman Robert Jeffrey said. “I hesitate to agree to a $1 a year figure for the next three years.”
Alderman Walter Schermerhorn agreed, saying, “The perception is that we’re making money on this, and we’re not.”
When the $1 a year fee was agreed upon in 1998, the rest of the ambulance costs were recouped through insurance payments and billing individuals. Roberts later explained this is no longer the case, saying that the costs of operating exceed the revenue.
Jeffrey also pointed out that the fire service costs for manpower alone are growing at a faster rate than what the contract projected for the fire service increase. “We’re not passing costs along to the towns. Maybe we need to look at the numbers again. Whatever is changed, the contract needs to reflect those changes.”
Once signed, the contract will be in effect until Dec. 31, 2009. “We need to make sure it’s beneficial to all parties, because once it’s signed, we’re locked in,” Schermerhorn said.
Roberts said the rate fees were prorated 15 years ago. The numbers were analyzed based on property rates in the city and the town and based on the value of the land and improvements. The two figures were very close. Since that time, the town has grown with the addition of Wal-Mart, Lowes and other businesses.
“There has to be something in the contract, where rates are negotiable down the line,” Schermerhorn said.
The issue will be taken to the inter-municipal meeting at 7:30 a.m. on Jan. 22 at the Town Hall.
City Financial Director Bill Roberts told the committee that a five-year contract for services expired in December. The renewal process has begun, and fire protection service and first responder service will continue to be provided by the city until the contract is renewed.
Some committee members expressed concern over leaving the contract fees on par with what they had been in the previous contract. “We haven’t gotten a number on what the ambulance service costs,” Alderman Robert Jeffrey said. “I hesitate to agree to a $1 a year figure for the next three years.”
Alderman Walter Schermerhorn agreed, saying, “The perception is that we’re making money on this, and we’re not.”
When the $1 a year fee was agreed upon in 1998, the rest of the ambulance costs were recouped through insurance payments and billing individuals. Roberts later explained this is no longer the case, saying that the costs of operating exceed the revenue.
Jeffrey also pointed out that the fire service costs for manpower alone are growing at a faster rate than what the contract projected for the fire service increase. “We’re not passing costs along to the towns. Maybe we need to look at the numbers again. Whatever is changed, the contract needs to reflect those changes.”
Once signed, the contract will be in effect until Dec. 31, 2009. “We need to make sure it’s beneficial to all parties, because once it’s signed, we’re locked in,” Schermerhorn said.
Roberts said the rate fees were prorated 15 years ago. The numbers were analyzed based on property rates in the city and the town and based on the value of the land and improvements. The two figures were very close. Since that time, the town has grown with the addition of Wal-Mart, Lowes and other businesses.
“There has to be something in the contract, where rates are negotiable down the line,” Schermerhorn said.
The issue will be taken to the inter-municipal meeting at 7:30 a.m. on Jan. 22 at the Town Hall.
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