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Freeport council approves large ambulance fee increase after debate over costs and revenue split
Summary
After extended discussion about rising equipment and operating costs, the Freeport City Council voted 6–2 to raise resident ambulance transport fees from $1,200 to $2,000 (nonresident rates to $2,500) and increase mileage to $20 per loaded mile; councilors debated the size of the increase and how revenue is divided between the fire fund and the city.
The Freeport City Council voted 6–2 to adopt an ordinance increasing the city’s ambulance transport fees and mileage rates, a move officials said is needed to offset operating losses and rising equipment costs.
Chief Cordy told the council the city’s current resident transport rate is $1,200 and nonresident $1,700 and proposed raising those to $2,000 and $2,500, respectively, and increasing the mileage charge from $14 to $20 per loaded mile. “What we’re proposing at this point is to raise our fees from $1,200 for residents to $2,000 and from $1,700 for non residents to $2,500,” he said, explaining the proposed change is intended to capture more revenue from insurance reimbursements and to keep pace with federal reimbursement rates.
Council discussion centered on the scale of the increase and which residents ultimately bear the cost. Alderman Johnson pressed the numbers, saying the ordinance’s suggested increase is far larger than the 13% adjustment a straight ordinance-based update would produce: “This increase constitutes a 13% increase. The proposed increase is a 67% increase,” he said, noting concerns about how higher health-care billing can ripple into premiums and taxes.
Other members, including Alderman Clem, said the council must keep emergency services financially viable and recoup what insurers will pay. Chief Cordy detailed recovery challenges, noting the department ran more than 4,450 calls last year and recovered roughly $915,000 in collections, and pointed to costly capital items such as a new ambulance ($458,000) and a cardiac monitor (roughly $46,600).
Finance and fund-split questions were raised during the debate. Director Richter confirmed the municipal code formula that governs how ambulance revenue is divided: 54% to the city and 46% retained in the fire capital fund. Supporters of the ordinance argued the increase is necessary to stabilize funding for emergency services and to avoid repeated small increases year to year; opponents said the council should consider smaller, phased adjustments and clarify impacts on residents.
The ordinance passed on roll call, 6–2. The council’s next steps are to implement the new rates, which Chief Cordy said would better align the city with Medicare/Medicaid reimbursement trends and to monitor collections and impacts on residents.
The council also adopted related housekeeping measures for ambulance and EMS billing during the same meeting. The new fees will take effect according to the ordinance schedule and the city manager’s finance staff will report back on revenue and collection results.
