FAIRBANKS, Alaska - The city of North Pole is considering charging fees for responding to medical emergencies and vehicle crashes to help cover the rising cost of health insurance and pensions for city employees.

Under the proposal by the mayor, North Pole residents would pay $600 for ambulance rides, while nonresidents would pay $800 for the rides and $200 to have the Fire Department respond to their motor vehicle crashes.

Other fees, including business licenses and fireworks vendor permits, also would increase in price. Some cuts to the city's $5 million budget are proposed.

North Pole Mayor Doug Isaacson told the Fairbanks Daily News-Miner he does not see any need for major cuts.

"We have to be vigilant, but I don't believe we have to run scared," Isaacson said. "I don't see through the rest of 2010 anything catastrophic."

Revenues, including sales tax, bed tax and alcoholic beverage tax, are projected to remain steady or grow.

But health insurance and contributions to the Public Employees Retirement System for police officers and firefighters cost about $200,000 more than projected last December, when the council approved this year's spending plan.

In addition to charging emergency fees, the mayor's plan would raise the cost for obtaining a business license from $25 to $50, which is what the state charges. Fireworks vendors would pay $3,000 for a permit. The fee now is $1,750.

Isaacson also wants the city to keep 25 percent of the bed tax, which is projected to be almost $70,000 this year.

The mayor also proposed to save money by leaving vacant some positions held by employees now fulfilling National Guard duties.

The proposal to institute a $600 ambulance fee for residents has met with opposition from at least one councilman.

"That's one of my benefits as a property taxpayer as well as a city sales taxpayer," Councilman Thomas McGhee said. "I spoke against it. I will amend it at the next meeting."

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Information from: Fairbanks Daily News-Miner, http://www.newsminer.com

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North Pole looks at fees for emergency services, crash response

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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