TOWER— The Tower Area Ambulance Service is continuing to face financial challenges even as the service has responded to a record number of 911 emergency calls in 2021. At the city council meeting on Monday, Clerk-Treasurer Michael Schultz provided the council with the latest financial report on the service. It shows a continuing slow drain on the service’s operating cash position, which was down to $12,701 as of November.
At the same time, the service maintained $83,937 in the ambulance replacement account.
In the six full months since June 1, the TAAS took in $233,150 in revenue from its emergency services and other sources, while expending $242,803. About 56 percent of those expenditures were for wages and benefits for its ambulance personnel, an expense that has jumped sharply since the service switched to a paid on-call system in 2018, with one of the highest on-call wages in the state.
The Emergency Medical Services and Regulatory Board (EMSRB) had strongly recommended in a report issued last May that the service immediately lower its on-call pay to a level that’s financially sustainable.
“The current paid-on-call structure is costly and inherently brings some additional risks related to the [Fair Labor Standards Act] and IRS rules of on-call,” stated the EMSRB in an operations review of the TAAS. “Essentially, TAAS is paying on-call staff what could be considered a livable wage which is not how on-call staffing is intended to function.” The EMSRB also found that the high rate of on-call pay had not proven effective at encouraging new recruitment or retention of ambulance personnel.
The city council, however, has taken little action on the EMSRB’s on-call recommendations to date. The city has, however, moved this year to increase run pay for on-call personnel in an effort to avoid overtime liability.
The TAAS has improved its on-call coverage in recent months, with an average of 80.6 percent coverage over the last seven bi-monthly pay periods. That’s a substantial improvement over the roughly 50 percent coverage the department was experiencing under the prior administration. “We are working on recruitment and hope to continue to increase coverage to reach the 100 percent required by the EMSRB,” said Ambulance Director Dena Suihkonen. “As always, building takes time and we are seeing growth in our service.” As the department improves its coverage, however, its wage costs are expected to increase accordingly.
The council took no action on the financial report.
In related action, the council did approve a motion to spend up to $3,000 to cover the cost of sending up to five members of the ambulance service to a three-day EMS conference in Duluth in January. Councilors agreed that the conference could be a morale booster for the service and provide some valuable training for members.
Other action
In public works business, the council approved the purchase of a 2010 John Deere grader from St. Louis County for $60,000, although the council will still need to identify the source of the funds to buy the equipment. The city’s 1970s-vintage grader is now barely operable and basic repairs would run close to half the cost of purchasing the much-newer grader, according to council member Joe Morin, who has researched the issue for the council. Morin said the 2010 grader has relatively low hours, at about 4,600, and that it should easily last the city 20 years. “The grader has a trade-in value of $80,000-$90,000, however the county has agreed to sell it to the city for $60,000,” reported Morin. The council will be working to identify the source of funds for the purchase. Morin said the county is willing to hold on to the grader until the city has the financing in place.
In other business, the council:
• Tabled action on the proposed police contract with Breitung Township after council member Kevin Norby asked whether the city would be liable to continue to pay the township in the event of a work stoppage. The council is expected to bring the contract, and possible clarifying language, back to the council at its Dec. 27 meeting. The police contract, if approved, will take effect on Jan. 1, 2022. The new arrangement with the township is expected to cost the city $65,346 next year, a savings of about $50,000 from the previous contract. Breitung will maintain a full-time chief under the agreement, but the two communities will rely on the St. Louis County Sheriff’s Office for response when the chief is not on duty.
• Tabled action on the city’s 2022 budget after technical difficulties kept Schultz from displaying documents on the civic center screen. Mayor Dave Setterberg said he anticipated a small surplus in 2021 and he was optimistic about the city’s future finances as a couple significant debts, including payment on a TIF district and repayment of a 2019 emergency loan from the League of Minnesota Cities. “Right now, it’s tight,” said Setterberg. “In two years, it gets a little better, in three years it’s a lot better.” The council will now need to approve the 2022 budget at its Dec. 27 meeting.
• Tabled action on the city’s new wastewater ordinance, as final changes had not been added to the text.
• Approved forgiving a portion of an old water and sewer bill that a Main Street property owner acquired with the purchase of a neighboring Main Street lot. The owner has agreed to pay $158 in exchange for forgiveness of the rest of the outstanding amount.
• Unanimously approved the recommendation of the Tower Economic Development Authority board to appoint Dianna Sunsdahl to fill a board vacancy.
• Agreed to post a seasonal maintenance worker job to assist with snow removal.