MOUNT VERNON — EMS districts struggle with financing big-ticket items such as medics, but a government, Fredericktown EMS, and electric co-op partnership could ease the strain.
Fredericktown EMS Chief Rick Lanuzza said the department ordered a new ambulance nearly three years ago. He expects to receive the medic in November, and it is time for Fredericktown EMS to figure out how to finance the $320,302 expense.
That’s where Consolidated Cooperative comes in. The co-op operates in the western part of Knox County and extends into the Fredericktown area.
As an electric co-op, Consolidated can access financing through the U.S. Department of Agriculture’s Rural Economic Development Loan and Grant program.
The USDA provides zero-interest loans and grants to utilities. In turn, the utilities create a revolving loan fund and loan the money to rural entities for projects such as business incubators or technical assistance.
And EMS.
However, EMS and fire districts are not permitted to take out loans. The county can.
In the three-way partnership, Consolidated applies for a no-interest grant and loans the money to the county at no interest. In turn, the county loans the money to Fredericktown EMS at zero interest.
Robin Santo, budget analyst for the Board of Commissioners and clerk for Fredericktown EMS, anticipates the loans to be five to seven years in length.
Fredericktown EMS then makes payments to the county to repay its loan, and the county makes payments to Consolidated to repay its loan.
Consolidated retains the money in its revolving loan fund and uses it for future loans.
The deadline for Consolidated to apply for the grant is June 30. The USDA caps the grants at up to $300,000 and requires the utility to provide a 20% match.
Consolidated will, therefore, provide $60,000, and the USDA grant will cover $260,000.
Grant program could save Fredericktown EMS $60,000
Dan Boysel, Consolidated’s vice president of community and government relations, said the grant approval process takes 30 to 60 days.
The loans would be activated in October and are contingent on Consolidated receiving the grant.
Boysel said the co-op committed to the loan because it helps its members and the community.
“That’s part of our mission as a co-op, which is maybe different than an investor-owned [entity] which has investors to worry about,” he said.
“Our worry truly is about our community and how we can better the places we live.”
If Consolidated does not get the USDA grant, Lanuzza said the alternative is to get a loan through the financing company Republic First National.
However, the zero-interest USDA grant would save Fredericktown EMS about $60,000 compared to a Republic loan.
Boysel feels comfortable that the co-op will get the grant.
“Our consultant thought it was pretty good that we would get it, only because there’s a lot of people backing out of doing this right now because they’re unsure of what the government’s going to do,” he said.
“[The consultant] said it might not be as competitive, especially being there’s still money in the pot, which is unusual for this time of year.”
“My personal opinion is any time we can help the county and the people who live in the county and villages, and it doesn’t put us in harm’s way, I think it’s a great thing for the county commissioners to do that,” Commissioner Barry Lester said of the proposal.
Commissioners Bill Pursel and Drenda Keesee concurred, and the commissioners authorized County Administrator Jason Booth to work with Consolidated and Knox County Prosecutor Chip McConville to figure out the logistics.
What’s the future of the current squad?
Lanuzza said the life expectancy for a Fredericktown EMS squad is 10 to 12 years.
The current 10-year-old truck has 106,000 miles on it. Once the new truck arrives this fall, the current truck will go to a reserve status.
“So if we have a truck that has to go into the shop or something like that, we can pull it out and use it,” Lanuzza said.
The reserve truck will house dive team equipment. The district will transfer its trailer to the Knox County Emergency Management Agency and utilize it as a mobile command center.
