Staff Writer
PRESQUE ISLE, Maine – The city’s 2009 budget of $13,429,300 was approved by City Council during its Dec. 15 session.
“Following some discussion, Council adopted the 2009 budget by the end of the meeting,” said City Manager Tom Stevens. With some cuts made to the budget during the Dec. 1 session – thanks, in part, to a drop in fuel prices – councilors made some final adjustments before passing the $13.4 million budget. The biggest item removed from the 2009 figure involved the ambulance subsidy paid to The Aroostook Medical Center.
“The big news that came out of the last discussion, councilors looked into the final budget and opted to reduce it by $103,000 to eliminate the ambulance subsidy paid to TAMC,” said Stevens.
Dave Peterson, president and CEOP of TAMC, was present to address the City Council on the issue of the city’s subsidization of Crown Ambulance. Peterson stated that a vote to discontinue the subsidy for Crown Ambulance is the same as a vote to establish a competing ambulance service. He indicated that to try to separate those things entirely (cutting subsidy and establishing an ambulance service), is masking the issue and that hospital officials had “negotiated in good faith” with the city manager and the ad hoc committee. Peterson requested Council consider their decision and where it leads most carefully.
“The city’s responsibility for the welfare of the citizens of Presque Isle, in the area of ambulance service, is just as important as fire or police protection and deserves that sort of consideration and responsible action,” noted Peterson.
Chairman Walt Elish indicated the city has been working with TAMC and Crown Ambulance “in good faith” to come up with a compromise and city officials appreciate their willingness to sit and talk.
“As a City Council, cutting the subsidy and establishing an ambulance service is considered two different issues. The subsidy is not related to the ambulance service. The city may decide to eliminate the subsidy and not go into the ambulance service, or to eliminate the subsidy and go into the ambulance service,” stated Elish.
Councilor G. Melvin Hovey reiterated his stance that the city could save money by cutting expenses at the fire department through the reduction of staff, relying more on volunteers than full-time firefighters. He favored eliminating the $100,000 subsidy from the budget.
Councilor Ron McPherson stated he felt the city did not have any business being in the ambulance business.
Councilor Jennifer Trombley noted the focus of the budget discussion was on TAMC’s subsidy and that the subsidy was not tied to the ambulance discussion.
Councilor Calvin Hall was in agreement with Hovey regarding the subsidy issue.
“With the research that has been done regarding the ambulance issue, for the most part, ambulance services are operated by their municipalities or privately. In very few instances does the municipality pay a subsidy to the private entity,” stated Hall, noting he’d support removing the $100,000 from the budget. He indicated, however, he would not favor cuts to the fire department.
Rather than make a rash decision, councilors felt it was prudent to carry over the ambulance discussion into 2009.
“Council decided to continue the ambulance discussion to a workshop in January – around Jan. 21 Council said they’d make a decision on whether to get into the ambulance business at that time,” said Stevens.
Of the $13,429,300, revenues make up $7,370,825, leaving a balance of $6,058,475, said Stevens.
“Those are the final numbers we arrived at by taking out the $103,000 from the unclassified ambulance account,” he explained. “That results in a 2.4 percent increase in the budget over last year’s figure.”
Stevens said this year’s budget is, “up about $145,200 more than last year’s,” but one he thinks city officials and its residents can live with.
“It’s a budget that retains services and absorbs the strains,” brought about by tough economic times, said Stevens.
Stevens said a slight increase was expected, due to the drop in the price paid for recyclables, the loss of a tenant at the Industrial Park and other factors.
“It’s a budget under strain. Fuels (going down in cost) was one of the things that helped keep this budget down,” said Stevens.
Recent cuts in fuel prices provided much-needed relief to department budgets. Stevens said so far this winter fuel costs are down, so it’s not costing the city as much to heat buildings and operate city vehicles.
“Earlier prices this year had us concerned but the recent drop in prices has been a big help,” he said.
“We worked closely with department heads to make cuts while maintaining services. We kept the total down through careful consideration,” said Stevens.
By a vote of 5-2, councilors voted in favor of removing the $103,000 subsidy from the budget. Councilors McPherson and Gardner voted in opposition. The $13.4 million budget was approved by Council with a vote of 5-2, with Councilors McPherson and Hovey opposed.
