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Medic 1 seeks higher Benton Harbor subsidy as city copes with cash constraints
Summary
Darwin Watson, chair of Medic 1, presented alternatives to rebalance a longstanding per-capita subsidy formula and asked member municipalities to cover more of a $2.5 million operating gap; the city manager and commissioners asked for call-location breakdowns and flagged limited city funds.
Darwin Watson, chair of Medic 1 ambulance services, told the Personnel Finance Committee that the regional EMS provider is operating at a deficit and presented a set of alternative funding formulas for member municipalities.
Watson said legacy arrangements left large disparities between members — some pay as little as $6 per capita while others pay up to $71 — and that Medic 1’s executive committee has proposed formulas that combine a base payment and variables such as call volume, population and taxable value. Options shown to the commission included base payments of $10,000, $20,000, $40,000 or $50,000 with differing percentage splits; the organization is seeking roughly $2.5 million across the service area. For Benton Harbor, the lowest-option increase cited would raise the city’s annual payment by about $89,200.
The committee asked for details. Watson said the city generated 2,618 Medic 1 calls from Dec. 1, 2024, to Nov. 30, 2025, out of about 16,000 systemwide calls — roughly seven calls per day in the city — and said that payment formulas that rely solely on property counts or simple per-capita measures do not fairly reflect operational cost differences between dense and rural calls.
City manager and commissioners raised affordability concerns. The manager said Benton Harbor’s near-term cash flow is strained and suggested a phased increase: “maybe paying an additional 30,000 for this coming year, maybe 40,000 the next,” to spread the impact while the city works to stabilize finances. Commissioners asked Medic 1 to provide a breakdown of call locations and high-frequency addresses (for example, assisted-living or congregate facilities) so the commission can evaluate whether targeted adjustments or partnerships might reduce the city’s net share.
Public comment tied the request to the city income tax. Resident Mr. Duncan asked whether the city income tax could be used to support resident access to hospitals; the manager said “in theory, yes,” but explained recent transfers, pledged amounts and other obligations reduce available discretionary funds.
Why it matters: Ambulance response is a core municipal service and changes to subsidy formulas would increase recurring costs the city must include in the next budget. Commissioners directed staff to request the detailed call-by-location data from Medic 1 and to bring funding options back for discussion before any vote.
What comes next: Medic 1 will pass information to the executive committee and the full board in April; the city asked Medic 1 and staff to provide the requested call breakdowns and cost scenarios so the commission can evaluate options during the budget process.
