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Council hears that volunteer fire reserves could bridge short-term gap; city says funds are private
Summary
Alderman Schrader cited a 2024 IRS filing showing roughly $1 million in Test Corners volunteer fire department reserves and suggested tapping those funds as a stopgap while the city conducts public engagement; city officials replied the reserves are private and largely spent on capital purchases.
During debate over the referendum timeline, Alderman Schrader said the Test Corners volunteer fire department reported "approximately $1,000,000 in reserve funds" on its 2024 IRS Form 990 and suggested those funds might help bridge an estimated 18-month gap while the city holds public informational meetings.
The Chair responded that Test Corners is a private organization contracted by the city and the reserves are not city funds. The Chair noted that the department has purchased capital items in recent years — including an ambulance the chair estimated at close to $400,000 — and that drawing down reserves could compromise the volunteer organization's financial position. "Those are reserve funds. They're not our funds, so we have no control over them," the Chair said. Council members debated whether an updated 2025 filing or alternative reallocations from city budgets could be used as temporary funding but did not adopt any motion to require or request use of volunteer reserves.
