EMSA`s Tulsa Fees Subsidize OKC Shortfall

Oct. 26-- EMSA has used Tulsa's ambulance fees to subsidize $800,000 in shortfalls for the Oklahoma City division, the Tulsa World learned Tuesday.

Kent Torrence, chief financial officer for the Emergency Medical Services Authority, told the World that Tulsa's eastern division has been subsidizing operations shortfalls for the western division, which includes Oklahoma City.

Torrence said as of the end of September, the western division owed $800,000 to the eastern division.

EMSA is a government agency that manages ambulance services for more than 1 million people in Tulsa, Sand Springs, Jenks and Bixby, as well as Oklahoma City and numerous suburbs in that area.

The agency receives about $4.8 million a year from a monthly utility bill fee paid by Tulsans. It also receives revenues from a utility bill fee in Oklahoma City.

Torrence said the $800,000 figure represents costs for western division operations in excess of that division's revenues to date. He said EMSA has taken steps to avoid future borrowing between the two divisions by building up a reserve fund in the western division.

Torrence said the western division is repaying the amount owed with interest.

"In October, that $800,000 drops back down to something like less than $100,000 and by the end of the year, there is no payable," Torrence said.

When City Councilor Bill Christiansen learned of Tulsa's subsidy for Oklahoma City, he said EMSA Chief Executive Officer Steve Williamson should have revealed that information to councilors during a discussion of the agency's finances at Tuesday's committee meeting.

"It appears to me that there are so many moving parts in this whole process that it would be a good idea for the city to find someone to audit EMSA from the perspective of money paid by the citizens of Tulsa into the program so that we are not paying for more services than we are getting," he said.

Christiansen said a lot of concerns are raised by the notion that "we're robbing Peter to pay Paul, and actually Tulsa is the lender."

During the committee meeting, Christiansen said he wants to amend a city ordinance to provide more oversight over EMSA. The councilor said he wants EMSA financial records, including annual audits, to be submitted to the council for review.

The council's discussion was sparked by a story in Sunday's Tulsa World that reported EMSA built up a $6.6 million cash reserve fund this year while giving pay raises, remodeling its building and paying $80,000 for lobbyists and PR firms.

The story also detailed past agency expenses, including a $999 Christmas tree, $3,000 barbecue grill and $9,000 area rug.

"If I just came here to Tulsa and read this article, I would think this is a place for me to get a loan, because anybody who spends money like this has got to have money to give me," Councilor Jack Henderson said.

Williamson defended EMSA's budget and spending and said the article could have caused confusion about the fund, which he said was 10 percent of the agency's annual operational cost. He said he is being a good steward of Tulsa's tax dollars.

Records show EMSA's operating cost this year is budgeted to be $25 million while the reserve fund's current balance is $4.1 million.

In 2007, the city instituted an optional $3.64 fee for ambulance service that is collected on the city's utility bills. Those who participate pay nothing for ambulance service.

Tulsa, the eastern division, and Oklahoma City, the western division, both collect the fee but pay it out to EMSA differently -- Tulsa in one lump sum and Oklahoma City in monthly installments.

During the meeting, Christiansen acknowledged that he's never had a complaint about EMSA in the 10 years he's been a councilor.

"This discussion is not over the quality of service under your leadership," he told Williamson.

"When I see the operating reserve build up and then I see the article on Sunday that talks about the $1,000 Christmas tree and terrazzo floor and all those associated things, I really wonder what is going on," Christiansen said.

Williamson told the council that he has met with Mayor Dewey Bartlett's management team to develop a letter to further stipulate what to do with the money when the 10 percent reserve is reached.

"In the past, we've just given it back (to the city), but there is going to be a process (put in place) so there is nothing misled to the public or misled with (council) about how these funds are to be used," he said.

P.J. Lassek 918-581-8382 Ziva Branstetter 918-581-8306

pj.lassek@tulsaworld.com ziva.branstetter@tulsaworld.com

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