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New Prague council moves $209,000 ambulance reserve to general fund, tables lease talks with North Memorial
Summary
The council approved transferring about $209,000 from the ambulance account to the general fund and deferred a decision on a proposed long‑term services and lease arrangement with North Memorial Ambulance after hearing that the provider reported a roughly $520,000 local shortfall for 2025.
The New Prague City Council on March 16 approved a resolution transferring about $209,000 from the ambulance account (Fund 651) into the city’s general fund (Fund 101) and postponed a final decision on a proposed five‑ to ten‑year service and lease agreement with North Memorial Ambulance.
Josh (staff member) told the council the transfer is an accounting close‑out: the ambulance fund will be shown as a designated fund balance in the general fund rather than being commingled. The council approved Resolution CC‑26‑3‑16‑3 on a 5‑0 voice vote.
The council also heard an update from North Memorial representatives and staff on the provider’s operating picture. Josh said North reported the New Prague operation was looking at “about a $520,000 loss in New Prague” for 2025, and North asked for a longer, more predictable contract term and for rent and utility payments on the city facility to be waived. North proposed a five‑ to ten‑year services agreement; staff included both a services agreement and a separate building lease in the meeting packet.
Council members expressed concern about the size of North’s reported losses and sought more detail before changing the city’s lease or financial terms. Several members suggested alternatives: keep existing rent terms, cover utilities only, shorten the lease term, or pursue cost‑sharing with townships and neighboring jurisdictions that fall inside North Memorial’s service area. Councilmember Chuck Nikolai noted that other communities rely on New Prague’s housed ambulances and urged outreach to townships for possible contributions; others said creating an ambulance advisory board or joint‑powers arrangement with the service area might be a way to pursue shared support.
The council’s direction to staff was to gather more information on utility and rent amounts, check how peer host communities handle rent and utilities, and return with options rather than immediately approving North’s request to waive rent. Councilmember Bruce Wolf moved to table a final lease decision and ask staff to compile comparables and possible township contribution options; the motion carried without a roll call vote.
The council and staff also discussed contract exit clauses: the draft services agreement includes a 365‑day termination right for either party and a 90‑day termination for cause. Some members suggested pairing a shorter building lease with a longer services agreement so the city can reassess facility rent in mid‑term if regional economics change.
What happens next: staff will collect utility estimates, comparable host community arrangements, and outreach options to townships and report back to council before any lease or rent concessions are made.
