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September 13, 2000

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Published Sep. 13 in the Journal Enterprise

Rate set for Webster County ambulance taxing district

By GWEN BOLIN
Journal Enterprise

PROVIDENCE — After nearly two years of discussions Webster County Fiscal Court presented the first reading of an ordinance to establish an ambulance taxing district. Initially the court was seriously considering attaching a 10 cents per hundred dollar tax on real estate and tangibles for the district. But after a lengthy hearing from citizens concerned about yet another tax, the court chose to go with the lower rate of six cents per hundred dollars of full-assessed value.

Prior to hearing county residents, Judge-Executive Jim Townsend explained the dilemma facing the county.

“We have been receiving decreasing funds from the LGEA (Local Government Economic Assistance) severance tax money over the past several years,” Townsend said.

According to Townsend LGEA funds have dropped from $848,256.22 in 1995/1996 to an estimated $600,000 to be received for 2000/2001. These funds have been detrimental to funding the county’s ambulance service.

Townsend offered visitors to the court a copy of ambulance expenditures for the past two years. Fiscal year 1998/1999 showed total expenses to be $313,863.43. Expenses for 1999/2000 fiscal year totalled $342,833.73.

Townsend explained the ambulance service is not mandated by the state, unlike many other services.

“To be able to continue operating an ambulance service there is going to have to be some funds generated to do that,” commented Townsend. “I wish we didn’t have to be discussing this but for the future of the ambulance service we have no choice.”

Lester Beauchamp of Clay was the first citizen to address the court. “I’m here to protest the tax,” said Beauchamp. “Why does the ambulance service have to have a contract with a hospital to run the service?”

“We did it on a volunteer basis for a number of years,” replied Townsend. “It got to be where they just couldn’t make their runs with just volunteers so we started a paid service which was very minimal. The last year we ran the service it cost us more than the first two years of the contract we signed with Henderson.”

“I’m against any tax of any kind,” said Beauchamp. “I know it can be done without a tax.”

Tom Oldham of Blackford asked, “How much money will this 10 cent tax appropriate for the county?”

“Based upon the figures that we have it would be $326,781,” replied Townsend. “At eight cents per hundred it would be $261,424. At six percent it would be $196,069.”

“Would this money stay in a special fund strictly for the ambulance service or can this money be switched out for something else?” asked Oldham.

Townsend replied the money could not be used for anything other than the ambulance service.

“Roughly you’re going to have $100,000 left over if you put this 10 cents tax on us,” commented Oldham. “Are you just going to keep piling that money up?”

Townsend agreed that would be an accurate figure if no ambulance needed to be purchased the first year. “What I would hope to do is that money would be put in a reserve account and at some point and time reduce the tax,” Townsend said.

“If you’re going to tax us for the ambulance service will that cut the county loose to have enough money to operate on like it’s supposed to?” asked Oldham.

Townsend acknowledged the funds currently used to help subsidize the ambulance service could be used in other areas.

“If we put this off, in two years the ambulances will be parked,” said Townsend. “It’s that simple.”

Freida McCormick of Clay asked the court to consider the difficulties businesses in the county are having. “Our revenues have gone down too. If you have to do it I hope you can see a way to keep it as low as possible,” she said. “Keep us in mind. We’re all trying to make a living.”

Laurie Phillips of Dixon expressed concern that the tax was an unfair burden on the average homeowner. “We’re not in the poverty level and we’re not senior citizens so we’re going to end up paying for other people that don’t pay,” said Phillips. “You’re trying to tax us for everything.”

After listening to comments from several others in attendance, Townsend explained what the options of taxing 10 cents per hundred, eight cents per hundred and six cents per hundred would cover.

“Ten cents per hundred would give us some surplus over the next two or three years,” said Townsend. “Eight cents per hundred would just about be a break-even point. If no ambulance purchase is necessary the first year it might even give us a little surplus. Six cents per hundred would amount to about $4,000 less than our contract with the ambulance service.”

Magistrate Tom Glover offered his suggestion. “We need to be pretty much on target rather than having money sitting there or setting it too low and not having enough,” he said.

“People manage better without a surplus than they do with a surplus,” interjected Magistrate Jerry Brown.

“I don’t want to go with 10 if eight will cover it,” said Magistrate Jim Mooney.

After more discussion among members of the court, Glover suggested the ambulance tax be set at six cents per hundred with the county picking up the balance of the ambulance service bill.

“If we go with the six cents that’s almost $200,000 more than we have now,” commented Glover. “If it goes bust we can put it before the voters and they can decide whether we raise more money or not.”

The first reading of the ambulance taxing district ordinance with a six cents per hundred tax was unanimously accepted.

In accordance with the ordinance the ambulance taxing district will include all of Webster County with the exception of the area within the city limits of Providence. A three-member board of directors will be appointed by the Fiscal Court to manage the district.

Other business at hand included a request for the court to sign the contract between the county and Medical Center Ambulance Service. Medical Center began overseeing the operations of the county’s ambulance service Sept. 1.

Court members were in agreement with the contract with the exception of one point. The contract was amended to state the central location of the ambulance service will be determined through the joint decision of the governing body of the ambulance service district and the ambulance service, not solely by the ambulance service.

With that change the contract was unanimously accepted.

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