Koochiching County’s Board of Commissioners is agreeing to float a loan to Littlefork’s ambulance department.
It is to help cover the cost of a new ambulance.
Retired fire chief Tom Donahue says a $130 thousand loan will avoid draining their reserves.
“We put in $20,000 every year to go towards replacement, but obviously, $332,000 for a new ambulance. It takes quite a while to build that up. So that’s why we’re hoping to not deplete that so that we can keep building on it,” says Donahue, who worked on acquiring a new ambulance before his retirement in July.
The city received a state grant worth $202,000.
Donahue says they will get another $65,000 on a trade of an existing unit, leaving a difference of about $60,000.
He says the city could cover that but would empty its reserve account.
“What we’d like to do is go for an eight-year loan and get $130,000. That way we could pay it all off, and still keep the $60,000 that we have now in our account for a new ambulance, which we’ll probably have to do in about three to four years.”
The city collects taxes for ambulance services but is not interested in raising the levy.
County Commissioners expressed their willingness to provide the loan but still had questions about the terms and timing that are still to be worked out.
Board chair Jason Sjoblom says having the grant included in next year’s budget when make it simpler.
The city hopes to take possession of the new vehicle by the end of the year.
