City of Oak Creek

Common Council Report

Meeting Date:  December 5, 2006

Item No.:        

Recommendation:  That the Common Council approve the Emergency Medical Services Agreement for Paramedic Services between Milwaukee County Department of Health and Human Services (County) and the City of Oak Creek.

Background:  This agreement reached with the County resulted from negotiations that began in March 2006.  This portion of the agreement was approved by the Intergovernmental Cooperation Council (ICC) of Milwaukee County.  The ICC has yet to determine the distribution formula from which the supplemental payments are to be made to the host paramedic municipalities.

The early start of this agreement was due in large part to the pending Milwaukee County budget shortfall which will begin in 2007.  The County Executive directed all departments, including the Department of Health and Human Services, to explore cost-reduction proposals.  During the negotiation process, the Emergency Medical Services (EMS) Council was tasked with potential funding elimination in key areas of the paramedic service, i.e. elimination of the Paramedic Training Center, discontinuing the billing and distribution of paramedic transport revenue, elimination of Medical Control and Communications, and elimination of the supplemental payment to the host paramedic municipalities.

After numerous negotiation meetings with the County and the lobbying efforts of the Mayors, Fire Chiefs, and the Fire Unions, the County Executive committed to the infrastructure of the paramedic system, specifically Medical Control and Communications and the Paramedic Training Center.  The County Executive further committed to the supplemental payments to the host-municipalities for the first year (2007) of this agreement.  Additionally, with this agreement the County will no longer be billing and distributing revenue for paramedic services; the host-municipalities will individually bill and retain their respective revenue for paramedic services.  The result of the transfer of billing to the municipality is a shift to a market-based revenue system.

For 2007, the supplemental payments from the County tax levy will continue, and with the increased call volume, the City’s Paramedic Fund will realize a revenue increase over 2006.  As the supplemental payments are decreased or eliminated, the paramedic system will move totally to a market-based revenue system.  Other challenges and opportunities will result from this shift.

Fiscal Impact:  An increase in the Paramedic Fund will be realized in 2007, however, revenue estimates for 2008 and 2009 will be difficult to determine.  Revenues for 2008 and 2009 will greatly depend on the County’s commitment to the supplemental payments and resulting market forces.

Prepared by: Brian M. Satula Fire Chief	Respectfully submitted, Patrick DeGrave City Administrator
Fiscal Review by: Beverly A. Buretta, CMC City Clerk