VCAD expects significant budget surplus

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Vernon County Ambulance District director Leland Splitter made recommendations to the board of directors Thursday evening on how the district may best utilize an approximate $300,000 budget surplus expected at the end of the current fiscal year in June.

"We talked about putting some money away for a rainy day," Splitter said. "If we have even a conservative windfall of between 300-400 thousand dollars, I think putting $100,000 into a reserve account would be a wise thing to do."

Splitter suggested after moving $100,000 to a reserve account, to use half of the remaining budget surplus to pay towards the principal on the district's mortgage with Heritage State Bank and the other half towards the loan for the two ambulances purchased in 2016.

Splitter said that by doing this, the district could potentially be in a position during the 2017-18 fiscal year to pay off both the mortgage with HSB and the loan used to purchase the two ambulances in 2016. "I feel we could do that," Splitter said.

"The sooner we get those paid off, the less interest we are paying," board member Chris Mason said. "I'd like to get the big mortgage paid off as soon as possible but I don't want to get us in a hardship or a bind."

"I'm in favor of the $100,000 reserve," board member Mike Harris said.

"I don't wanna break the bank, these are the best numbers I have ever seen since I've been here," Splitter said.

VCAD's increased revenue is due in part to out sourcing patient billing in early 2016.

The board unanimously approved moving $100,000 from the general operating account into a reserve account.

The board voted unanimously to increase monthly payments to Heritage State Bank by $20,000. HSB holds VCAD's mortgage taken out to repay taxes and fees owed to the Internal Revenue Service and the state of Missouri that had been incurred under the leadership of the former director and office manager.

In other business,

* Splitter updated the board on the Department of Energy loan the district has applied for.

"This has been a monumental undertaking," Splitter said, explaining the district's contact with the state of Missouri has repeatedly requested more information.

Splitter said he is unsure if the loan program will fund replacement of the shingle roof on VCAD's main building with a metal one.

* Splitter reported VCAD has joined the Ambulance District Association of Missouri due to Missouri becoming a right-to-work state.

* Splitter said annual training for board members has been moved to June and will be located at Lake of the Ozarks. Board members must attend this training within one year of being elected to the board.

* The board unanimously approved renewal of an annual contract with legal counsel Kendall Vickers at a retainer rate of $200 per month. Vickers has represented the district since 1994.

* Michael Fields, an accountant with Cory Gayman C.P.A. Firm, told the board that a software limitation within QuickBooks prevents automatically changing wording on employee's pay check stubs from "vacation" to "paid time off" to be in line with district policy. One possibility may be to have employees sign an annual disclaimer stating they acknowledged that "vacation" time on their pay check stubs was the same as "paid time off" as described in VCAD policy. Splitter will consult Vickers before moving forward.

* The board unanimously approved a motion to write off the remaining $500 of one patient's bill and to match the monthly payments of another patient until that $3000 bill has been repaid. This is per VCAD resolution 2013-3 which allows patients who demonstrate significant financial burden to negotiate with VCAD regarding debt incurred through services rendered.

"I think that's fair," chairperson Mark Humphrey said.

* The board unanimously approved participating in the Chamber of of Commerce annual gala. VCAD will sponsor a table and purchase four additional tickets for representatives to attend.

* The board unanimously approved an $8,800 bid from Santa Paula Awning Company for replacement of three entry doors with upgraded security features. The board approved spending not more than $10,000 on the project because an electrician will have to be contracted to run electrical supply and control wires to the doors.