NorthStar Subsidy Amounts - Effective July 1, 2008
Below is a discussion of the formula approved by the NorthStar Advisory Board to establish town support for NorthStar. If you have questions, please email them to the Director at drobie@fchn.org or call him at 779-2770.
NorthStar and Franklin Memorial Hospital are pleased to be providing highly trained professional, modern equipped ambulance and community services to the region. With the strength of a 24/7 regional organization, NorthStar still keeps its patient care operations local to the communities it serves.
NorthStar’s contract with the towns renews each July 1 (to see a copy of the contract, click here). For the contract year (and "fiscal year" 2009) beginning July 1, 2008, NorthStar continues the "universal" formula established in 2006 that applies in the exactly the same way to all towns and counties NorthStar serves.
A notitification letter and detailed explanation has been sent to all towns, plantations, and counties (for the UTs) in November 2007. You can see a copy of the letter by clicking here. Accompanying that letter was a copy of NorthStar's P&L statement for FY 2005, FY2006 and proposed budget for FY 2008.
In summary, the formula uses:
Fee. A single Flat Fee for each town ($4,000).
Dollar Value. A dollar amount applied to each town’s unique demographics:
- Population - $11 per person (The ambulance business is about people.)
- Residential Valuation – 7.5¢ per $1000 of valuation (Focusing on the "individual’s" valuation, this is an indication of overall development in the area.)
- Housing Units - $31 per dwelling unit (Taking into consideration seasonal visitors.)
Distance Ratio Factor. Like "insurance", ambulances and crews are positioned at strategic points around the region to assure that responses are timely and available 24/7, even in sparsely settled areas with fewer income producing runs. Since the total subsidy amount is based on NorthStar’s overall deficit (income minus expenses), a distance factor is appropriate. In the formula, the total above is multiplied by a distance factor. To limit the effects of both very short and very long distances the factor has been set with a minimum (0.2) and a maximum (1.0) ratio value.
Limiting Factor. Applying a "Limiting Factor" assures that a town’s subsidy amount will not go up (or down) unreasonably in any one year. The change in support amount year to year is limited to no more than a 20% increase or a 10% decrease from the prior year.
Baring unforeseen circumstances, the single, universal formula should not change significantly over the next few years although there will continue to be changes in the amounts of each town’s support due to changes in demographics and the effects of the Limiting Factor.
NorthStar is proud to be your ambulance service.
$60,259
Town/Municipality
Population
Valuation (000)
Housing Units
FY2009 Subsidy Amount (after Limiting Factor)
Avon
504
$18,310
302
$14,136
Carrabassett Valley
399
$399,143
1,675
$90,250
Chesterville
1,170
$53,739
684
$10,835
Coplin Plantation
135
$15,634
160
$11,618
Dallas Plantation
250
$96,282
371
$25,472
Eustis/Stratton
658
747
$39,211
Farmington
7,410
$220,911
3,048
$39,313
Highland Plantation
52
$2,219
56
$4,272
Industry
790
$59,141
487
$7,223
Jay
4,985
$156,222
2,155
$54,452
Kingfield
1,103
$61,271
659
$38,387
Lincoln Plantation
46
$6,882
119
$1,255
Livermore
2,106
$120,799
1,066
$34,008
Livermore Falls
3,227
$77,633
1,502
$45,284
New Portland
785
$35,980
564
$28,905
New Sharon
1,297
$52,512
598
$11,889
New Vineyard
725
$37,857
432
$6,621
Phillips
990
$40,488
626
$28,533
Rangeley
1,052
$417,864
1,561
$95,303
Rangeley Plantation
123
$202,733
516
$36,554
Sandy River Plantation
93
$52,414
275
$17,479
Strong
1,259
$37,080
614
$11,588
Temple
572
$24,507
316
$5,247
Vienna
527
$41,955
367
$4,815
Weld
402
$73,822
691
$3,736
Wilton
4,123
$157,437
1,882
$23,901
Franklin UTs
880
$116,842
719
$51,532
Oxford UTs
10
$63,265
145
$12,958
Somerset UTs
23
$40,059
212
$13,414
$768,218
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