Virginia city backs away from police, ambulance contracting plan

Virginia leaders backed away Tuesday from outside contracting for police and ambulance service after firefighters, employees and residents pushed back, but the St. Louis County city still faces a cash squeeze that could last only through September without new action. Councilors voted not to pursue requests for proposals for ambulance service and police service, and a separate motion to move ahead with a police RFP also failed.

The city is carrying more than $77 million in long-term debt against a general fund of roughly $21 million, and public safety already takes a large share of spending. The ambulance fund adds another layer of strain, while officials have been looking for ways to cut levies and shift operating costs away from taxpayers.

Fire Department members do not want police or ambulance operations contracted out, and some residents argued that both services should stay in-house. Others warned that the city cannot keep relying on tax increases. Councilor Justin Skalko said residents are asking for help and that officials need to explore options instead of ignoring the problem. Mayor Larry Cuffe Jr. said the city needed more time and that drafting an RFP would not fix the underlying issue.

Moody’s downgraded the city’s long-term rating to Baa3 from Baa1 on Nov. 20, 2024, citing an underperforming events center and an ambulance services fund that had more than depleted reserves. Material capital needs could add more strain, while much of the city’s liquidity sits in Virginia Public Utilities and is not readily available for general operations.

Cuffe said in February 2024 that Virginia’s EMS system lost more than $550,000 in 2023 and could not keep covering those losses with reserves and investments. That warning came as state lawmakers and EMS leaders pressed for $120 million in emergency ambulance funding, and Minnesota later created a one-time $24 million aid program for select ambulance services.

The city froze spending and overtime in April after transferring $2 million from an investment fund to the general fund. Officials have also raised the possibility of sharing services with neighboring communities, but they have not yet offered a replacement for the outsourcing plan they just rejected. Virginia’s EMS page lists the department as providing a safe, modern, efficient emergency ambulance service, even as the council’s vote left that model unsettled.