Thursday, September 24, 2009

South Hadley fire units join forces: Separate departments seek $800,000 from town

Daily Hampshire Gazette - September 24, 2009
South Hadley fire units join forces: Separate departments seek $800,000 from town
by steve
SOUTH HADLEY - When the Select Board asked the two Fire Districts in town to work together, the latest joint initiative of the districts is not necessarily what they had in mind.
The Prudential Committees for Fire District 1 and Fire District 2, both independent governmental bodies, have agreed to approach the Selectboard, seeking the transfer of more than $800,000 in the town's ambulance fund to the two districts, said Edward Wall, Prudential Committee chairman for District 1.
If the Selectboard declines to transfer the funds, the districts are prepared to begin a petition drive to place the matter before Town Meeting this fall, Wall said.
Ambulance services run by municipalities typically break even at best, said Wall. The town ambulance fund, which has been used in the past to purchase police cars and supplement an account that aids police injured on duty, has such a robust balance because the Fire Districts were supplying the emergency medical technicians that staffed the town ambulance, he said.
The town halted its ambulance service in July. Ambulance service in South Hadley is now provided by the two districts.
"Essentially, we were donating the labor," Wall said. "The money was put in this enterprise fund to support ambulances. Our feeling is the savings should continue to be used for the ambulance service," he said.
Gregory Sheehan, Select Board chairman, said he is keeping an open mind about the proposal. The districts will have to show him how transferring the funds would benefit the town as a whole, Sheehan said.
"I think that ultimately they'll have to make their case to Town Meeting," Sheehan said.
But Sheehan is worried about the town's financial situation if the money becomes unavailable, he said. With state aid expected to be reduced again in the coming fiscal year and the town having lost more than $1 million in investments, transferring the money could lead to higher taxes or increased fees, he said.
"It could potentially lead to $800,000 less that we have to fall back on to plug holes in the budget," Sheehan said.
"We've been counting on that enterprise fund surplus. It would be a significant impact (on the town budget)," said Select Board member John Hine.
The balance of the fund is anticipated to revert to free cash July 1, and "will probably be needed to balance the FY11 budget," interim Town Administrator Jennifer Wolowicz stated in a recent memorandum.
Hine said that arrangements for running the town's ambulance were agreed on by both districts and the town when the surplus was generated. "I'm not sure there should be reconsideration of what was done in the past," he said, but added that he has not seen the specifics or rationale for the proposal.
Wall said that with the two districts combined, they represent the entire town. And with a split of the fund if it is transferred based on the population served by each district, "everybody in town gains or loses nothing," said Wall.
"I think we have a good argument," he said. "It's what the money was intended for."

No comments:

Post a Comment