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HomeMy WebLinkAboutItem 17 Discussion and Direction for Funding Emergency Medical Services with a Dedicated EMS Enterprise Fund City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org STAFF REPORT Meeting Date: May 19, 2026 Item #: 17 Contact Name: Charles Van Camp Department Director: Thomas Smothers Contact Number: Ext. 2006 City Manager: Craig Shadrix Subject: Discussion and Direction for Funding Emergency Medical Services with a Dedicated EMS Enterprise Fund. (Deputy Fire Chief Van Camp) Background Summary: In light of proposed state legislative changes aimed at reducing property taxes, the City anticipates a meaningful impact on local government tax revenues. In response, the City Manager has asked all departments to proactively identify revenue-generating functions that could be transitioned away from General Fund support to an Enterprise fund. Through this review, the Fire Department has identified Emergency Medical Services (EMS) as a strong candidate for transition to a self-supporting Enterprise Fund model. Rather than relying on General Fund resources, EMS operations would be sustained through the revenues generated which will create a more resilient and transparent funding structure. This transition is expected to deliver several important benefits: • Reduced General Fund reliance, helping to offset the impact of anticipated state driven revenue reductions • Greater operational flexibility to respond to changing service demands and opportunities for additional revenue • Improved service delivery capabilities through staffing Staff is requesting authorization and direction to return with a proposed ordinance, developed as part of the budget process, formally establishing an EMS Division and an EMS Enterprise Fund. Additional information and a presentation by the Fire Department will provide additional context and analysis to support the Council's consideration. Issue: Should the Honorable Mayor and City Commission direct staff to return with an ordinance for first and second reading establishing an EMS Division and EMS Enterprise Fund, and to include the EMS Division and Enterprise Fund in the proposed Fiscal Year 2026–2027 budget? Page 591 of 603 City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org Recommendations: Staff recommends the Honorable Mayor and City Commission direct staff to return with an ordinance for first and second reading establishing an EMS Division and EMS Enterprise Fund, and to include the EMS Division and Enterprise Fund in the proposed Fiscal Year 2026–2027 budget. Attachments: 1. EMS Division Enterprise Fund Proposal Financial Impacts: There is no immediate fiscal impact associated with this action item. Approval of this item would authorize staff to draft and return with a proposed ordinance establishing an EMS Division and EMS Enterprise Fund as part of the FY 2026/2027 budget process. Type of Item: Regular Page 592 of 603 Page 593 of 603 EMS Enterprise Fund Proposal: Transition, Staffing, Compensation, and Service Enhancement Framework Introduction The City of Ocoee Fire Department has an opportunity to strategically enhance its emergency services through the creation of a dedicated Emergency Medical Services (EMS) Division supported by an Enterprise Fund. This initiative represents a forward- looking approach that strengthens operational effectiveness, promotes workforce stability, and aligns financial resources to meet service demands. This proposal presents a strategic enhancement through the creation of a dedicated EMS Division supported by an Enterprise Fund model. This approach builds on the Department’s existing strengths while providing financial transparency, minimizing pressure on the General fund and establishing a stable funding mechanism capable of adapting to community growth. Executive Summary The City of Ocoee Fire Department proposes the establishment of a dedicated EMS Division supported by an Enterprise Fund model. By treating EMS as an enterprise service similar to utilities or other fee-supported operations, the City gains greater control over costs while maintaining exceptional emergency response capabilities. This initiative is designed to: • Enhance EMS service delivery through dedicated paramedic staffing • Strengthen fire suppression readiness through improved personnel allocation • Align EMS-generated revenue directly with EMS expenditures • Improve transparency and accountability in EMS operations • Reduce reliance on tax-supported funding mechanisms Importantly, this model creates the opportunity to reduce the financial burden on the City’s General Fund budget, which may translate into the stabilization, or potential reduction, of fire service fees for residents and businesses in the future. Background As the City continues to grow, EMS call volume and transport demand have increased. This growth presents an opportunity to refine how EMS services are delivered and funded. Page 594 of 603 EMS Enterprise Fund Proposal: Transition, Staffing, Compensation, and Service Enhancement Framework The current dual-role staffing model—where firefighter/paramedics perform both suppression and transport functions—has been effective, but evolving demand creates an opportunity to better align personnel with specific service needs. By enhancing specialization, the Department can improve both EMS responsiveness and fire suppression readiness. Operational Alignment Opportunities Service Delivery Optimization • EMS transport demand continues to grow • Opportunity to enhance unit availability and reliability Workforce Optimization • Expanded hiring pool through paramedic-only positions • Improved role clarity and specialization Deployment Enhancement • Ability to align staffing with apparatus deployment needs • Supports long-term operational consistency Financial Alignment • EMS generates revenue that can be more directly aligned with operational costs • Opportunity to improve transparency and cost recovery Proposed EMS Division Structure Staffing Model The EMS Division will consist of single-certified paramedics (PMOs): • Dedicated EMS personnel assigned to transport and medical response • Civilian (non-firefighter) classification • Fully integrated within Fire Department operations This model allows: • Reassignment of firefighter/paramedics to suppression apparatus Page 595 of 603 EMS Enterprise Fund Proposal: Transition, Staffing, Compensation, and Service Enhancement Framework • Improved balance between EMS and fire operations • Enhanced system reliability Enterprise Fund Framework Overview The EMS Division will operate as a self-supported enterprise system, where: • EMS-generated revenue funds EMS operations • All direct and indirect costs are fully allocated • The system operates independently from the General Fund Key Financial Benefit By transitioning EMS to an Enterprise Fund: • The General Fund budget for the Fire Department budget will be reduced by approximately $1.86 million • This represents a significant reduction in tax-supported expenditures • Over time, this may allow the City to: o Stabilize fire service fees o Reduce upward pressure on residents and businesses o Provide greater resilience during economic fluctuations o Improve long-term financial flexibility Cost Allocation All costs—including shared overhead—are proportionally allocated and reimbursed through the Enterprise Fund: • Personnel • Equipment and vehicles • Facilities and utilities • Insurance and administrative services Operational Benefits 1. Enhanced Fire Suppression Readiness Page 596 of 603 EMS Enterprise Fund Proposal: Transition, Staffing, Compensation, and Service Enhancement Framework • Improved staffing alignment supports full apparatus deployment • Increased operational consistency 2. Improved EMS Service Delivery • Two paramedics per unit • Increased availability and reliability • Higher level of patient care 3. Workforce Expansion • Broader recruitment pool • Improved retention potential • Reduced workload strain 4. Financial Sustainability • EMS becomes a revenue-supported service • Reduced reliance on property tax funding 5. Transparency • Clear tracking of EMS costs and revenue • Improved reporting and accountability Financial Position The proposed model demonstrates that: • EMS operations can fully fund themselves • Revenue projections support ongoing operations and capital needs • The system can generate positive net revenue, providing flexibility for reinvestment Key Financial Insight EMS operations not only sustain themselves under this model, but also reduce the Fire Department’s reliance on tax-supported funding—creating the potential for long-term stabilization or reduction of fire service fees. The EMS Enterprise Fund introduces a Page 597 of 603 EMS Enterprise Fund Proposal: Transition, Staffing, Compensation, and Service Enhancement Framework stable financial framework that grows alongside service demand. EMS transport revenue, Medicare & Medicaid reimbursements, supplemental funding programs and service- based billing collectively create a dedicated funding stream to support the Fund. Policy-Level Financial Conclusion The EMS Division and Enterprise Fund model: • Transitions EMS from a cost center to a self-sustaining service • Reduces pressure on the Fire Department’s budget • Enhances financial flexibility for the City • Aligns service costs with service demand Bottom Line With enactment of the EMS Division and Enterprise Fund: • EMS becomes fully self-funded • Fire suppression resources are better aligned • The City gains financial flexibility • Residents and businesses may benefit from reduced fire fee pressure By implementing this model, the City of Ocoee will enhance operational resilience and ensure that emergency services remain sustainable and responsive to years to come. Recommendations Based on the operational, financial, and service delivery benefits outlined in this proposal, it is recommended that the City: • Authorize the establishment of an Enterprise Fund to support the EMS Division. • Approve the hiring of twelve (12) full-time single-cert paramedics and up to six (6) part-time single-cert paramedics to support staffing and overtime coverage, as needed. • Approve the reassignment of personnel to staff a fourth engine, including the reclassification of three (3) positions to Engineer and three (3) positions to Lieutenant. Page 598 of 603 EMS Enterprise Fund Proposal: Transition, Staffing, Compensation, and Service Enhancement Framework These recommendations are structured to minimize fiscal impact by utilizing EMS- generated Enterprise revenues to support EMS operations, while personnel cost adjustments are managed within the overall funding model. Fiscal Impact Summary EMS Division (PMO Model) & Fire Suppression Staffing Restoration Overview This analysis compares the financial impact of: 1. Status Quo (Current Model) 2. Proposed EMS Division (PMO Model + Enterprise Fund) 3. Restoration of 4th Engine Company Staffing The goal is to demonstrate how EMS-generated revenue can offset personnel costs and support the Department’s ability to restore full suppression staffing. Estimated Annual Costs A. EMS Staffed with Fire Suppression Personnel Component Estimate Personnel per Ambulance (minimum staffing) 4 per shift Total Positions Required (24/48 schedule) 12 FTEs Avg. Fully Loaded Cost per Firefighter $134,337.57 Paramedic Incentive for (6) PM’s $9,600 Total Annual Cost $1,621,651 B. EMS Division (PMO Model) Component Estimate Number of PMOs (24/48 schedule) 12 (2 per unit) Avg. Salary (Base) $55,000 Page 599 of 603 EMS Enterprise Fund Proposal: Transition, Staffing, Compensation, and Service Enhancement Framework Component Estimate Fully Loaded Cost per PMO $100,016 Cost of Administrative Personnel $201,119 Total Annual Cost $1,401,311 Estimated EMS Revenue (Enterprise Fund) Transport-Based Revenue Metric FY27 Estimates Avg. Net Revenue per Transport $433.51 Annual Transports 4,453 Annual Revenue (per unit) $965,210 Annual Revenue (2 units) $1,930,420 Additional Revenue Sources Source FY27 Estimates EMS/PEMT/MCO - ST & VENDOR SHARE $1,007,901 Windermere Contract (86%) $781,276 Total Supplemental Revenue $1,789,177 Net Financial Impact EMS Division (Per Transport Unit) Category FY27 Estimates Total EMS Revenue $3,719,597 PMO Staffing Cost (incl. Admin Staff) $1,401,311 Operating Costs (fuel, supplies, 12% Admin) $1,196,833 Net Positive Revenue $1,121,453 Page 600 of 603 EMS Enterprise Fund Proposal: Transition, Staffing, Compensation, and Service Enhancement Framework Strategic Financial Position Key Takeaways • EMS transport operations generate sufficient revenue to fully fund EMS staffing and operations • Surplus EMS revenue can be used to support capital replacement (ambulance in FY27, equipment, etc.) Cost Comparison: Current vs. Proposed Model Category Current Model Proposed Model EMS Staffing Firefighter/Paramedics PMOs (single-cert paramedics) Funding Source General Fund Enterprise Fund (EMS revenue) Suppression Staffing Impact Reduced (due to transport) Restored (personnel reallocated) ISO Capability Not achievable Achievable with added staffing Financial Transparency Limited High Policy-Level Financial Conclusion The proposed EMS Division and Enterprise Fund model: • Transforms EMS from a cost center into a revenue-supported service • Provides a fiscally neutral funding mechanism to support staffing increases • Reduces reliance on property tax-supported General Fund dollars • Creates a fiscally neutral pathway to restore the 4th engine company and ISO Class 1 rating Bottom Line With implementation of the EMS Division and Enterprise Fund: • EMS operations can pay for themselves • The City gains financial flexibility • The Department can strategically reinvest resources into fire suppression staffing Page 601 of 603