Sussex plan intends to stabilize fire department finances

Sussex County fire departments face demands for fire and ambulance services fueled by an ongoing housing boom, and they are coming with a growing price for emergency responders and their equipment.

Insurance payments fall far short of covering ambulance service costs, while wear and tear on equipment is expensive, leaving fire departments in a bind.

“Reality is, we’re struggling,” said Lewes Fire Department President Gregory Bennett, whose department handled about 1,000 fire calls and 6,000 ambulance calls annually in recent years, and those numbers are rising. 

Sussex County has formulated a plan to help cash-strapped fire departments by hiring a firm to coordinate billing for ambulance services and establishing a program to help buy ambulances. This is in addition to the $6 million in aid the county provides fire departments annually.

“It’s a step in the right direction,” Bennett said. “I can’t speak for other departments. Lewes is growing by leaps and bounds.”

County Finance Director Gina Jennings, who created the plans and outlined them during the March 17 Sussex County Council meeting, said the estimated $2 million total cost would not be a financial burden for taxpayers.

“This is not a tax increase,” Jennings said. “It will be funded through realty transfer tax that we are collecting today.”

There was no need for action by the county March 17, as any changes would be considered during the annual budget process, she said.

The proposals are intended to create long-term fiscal stability by improving financial operations of fire departments and assisting with vehicle costs, rather than giving annual financial aid directly to fire companies, she said.

“Continuing to write a check going forward, that’s not the option anymore,” Jennings said. “We want to make sure we’re protecting the tax dollar.”

“To be honest with you, just giving money is great, but identifying places where we can be more efficient as a fire service is very important, probably before you start increasing funding,” Councilman Steve McCarron said.

Jennings drafted plans after meeting in October with fire officials, county administrators and the council leadership team in response to a state-mandated study of fire departments conducted in all counties and released last year.

Jennings said in the fall, the Sussex County Volunteer Firefighter’s Association reviewed the report that FACETS LLC prepared after its year-long study to determine the needs of fire departments.

The report, and data compiled by the fire departments, found the cost of providing ambulance service is the biggest financial burden to the departments.

Jennings said she formulated proposals to help address a $1.3 million shortfall in the $23.3 million annual total cost of providing ambulance services.

“It’s continuing to grow with inflation and call volume,” she said.

A rapidly growing population spreading into rural areas is putting strain on fire departments.

“Basically, I was looking for some common ground between what the volunteer fire association is asking for, what the FACETS study said and what our key values are when we look at something going forward,” Jennings said.

Rates for billing reimbursements and success in receiving payments vary greatly among fire departments, Jennings said. The goal is to standardize accounting practices and ensure payments are received to support the cost of services.

“It will hopefully drive the costs down and increase collections,” said Milton Fire Chief Gene Dvornick.

Bennett noted there could be logistical issues because Lewes Fire Department uses a two-tiered billing system in which residents who participate in a subscription program receive breaks in billing.

The department informed county officials a year ago it might have to shut down its ambulance service unless the county provided funding to cover costs.

Bennett said he believes the county’s plan to help stabilize fire departments’ finances would allow Lewes to maintain ambulance service.

“I had talked with several of the folks at the fire companies in my district, and one of their chief complaints was this administrative workload,” said McCarron, a member of the Bridgeville Volunteer Fire Company for more than 30 years.

Rehoboth Beach Fire Chief Mike Simpler said the county’s plans to assist fire departments would help, but his department would be better served by an increase in funding to pay salaries of ambulance staff.

The Rehoboth Beach Volunteer Fire Company runs smoothly with its existing billing service, and it has a vehicle replacement schedule, Simpler said. Some other departments may be in the same situation, he said.

“I think there needs to be a lot more discussion about it,” Simpler said.

The county would pay an estimated $800,000 annually for the ambulance billing program, but all the revenue generated would go to the fire departments, Jennings said.

Sussex County would manage the contract, and ensure billing and collections are consistent, she said. There will be no need to hire county staff due to the new billing program, Jennings said. 

The county will also spend about $1.2 million to buy three ambulances each year, at a cost of about $400,000 for each standard vehicle, she said. If a fire department wants to make upgrades, it would pay the additional cost.

Each fire department would get a new vehicle every seven years, but departments typically operate several ambulances. The vehicles have a useful life of about seven years, Jennings said.

“If it's one less thing that we have to fund and the system works, I think we would welcome it,” Bennett said, adding Lewes has a fleet of six ambulances.

Dvornick said buying ambulances through an agreement may make it quicker to receive a new vehicle. He said Milton ordered an ambulance early this year for $480,000 and it is projected to take 18 to 24 months for delivery. Milton has three ambulances.

Milton responded to 489 fire calls and 2,586 ambulance calls in 2025, Dvornick said.