Council discusses creating a fire‑department ambulance replacement fund; auditors advise consulting bond adviser

During questions after the audit presentation, a council member raised whether Portage City could establish a dedicated reallocation or vehicle‑replacement fund for ambulances so the city could accumulate cash for future ambulance purchases rather than borrowing at the time of purchase.

The question matters because the ambulance service is evolving toward a more businesslike operation with its own revenues and costs; council discussion focused on whether holding funds in advance would cause compliance or borrowing issues.

The council member asking the question said the proposal — which the finance committee would review — would let the city set money aside “without any real red flags coming up” even if the funds were not spent for a year or more. Leah Gaffney, the Baker Tilly manager, said separating and tracking ambulance activity in its own fund “makes sense” for transparency and management, but she recommended additional review: she suggested consulting the bond adviser about borrowing and whether keeping bond proceeds or accumulated funds could raise arbitrage or other compliance concerns.

Council members noted the ambulance operation has revenues and expenditures and capital needs similar to water and sewer utilities, and that the finance committee would evaluate how to structure any reallocation or vehicle‑replacement fund. No formal motion or vote occurred; members described the idea as a topic for the finance committee and future budget planning.

Next steps identified in the discussion included referring the concept to the finance committee for a formal recommendation and, if borrowing or bond proceeds are involved, confirmation with the bond adviser about arbitrage and covenant issues before placing funds in a dedicated account.