MOSES LAKE — The Moses Lake City Council approved a lower increase for the ambulance utility fee starting in January.

The amount is now $8.25 per household.

The fee was unanimously passed by city council Tuesday night.

The lower fee came after city staff further reviewed the statute governing fee establishment and learned that any fee established cannot calculate a deficit or loan repayment into the new fee.

The new fee rate will be collected from 8,800 households and cover the anticipated $1.35 million the ambulance service will cost to operate in 2011.

The ambulance service will have a $700,000 deficit by the end of 2010. In order to balance the fund, city staff borrowed $650,000 from the water and sanitation funds.

City council previously approved an $11.38 utility fee to pay for the ambulance service, which allocated portions to pay for the inter-fund loan and establish a reserves fund.

It was reduced before it was implemented. The new $8.25 fee will be collected through the water and sewer utility bill.

As part of the new rate, the general fund contribution was increased to $252,800 annually.

The general fund contribution was divided in several ways.

Roughly $130,000 per year is for the five-year loan repayment plan, $49,300 per year will go toward establishing a reserves fund and $73,500 will go toward the ambulance fund.

City staff hope to establish a reserve fund of at least $250,000 to cover any unexpected costs over the next five years.

Moses Lake Mayor Jon Lane commended city staff for lowering the fee increase.

“But I am still interested in looking at other ambulance options,” he said.

Councilman Dick Deane wanted to see a cost comparison between in-city, out-of-city and non-emergency transports in the future.

City Manager Joe Gavinski stated the city would look into how non-emergency transports costs can be recovered if they believe they are losing money on every transport.