This story has been updated to reflect more information.

The Niles Township Board of Trustees voted unanimously Monday night to approve the intent to establish a special assessment district (SAD) to continue to defray the cost of Southwestern Michigan Community Ambulance Service.

If the resolution is approved, township residents will continue to pay a $20 fee. The cost would be allocated by per parcel every year for five years to defray the cost of SMCAS. The SAD’s approval is contingent upon each of the six municipalities that own SMCAS agreeing to establish the tax. SMCAS is owned by Niles, Niles Township, Bertrand Township, Buchanan, Buchanan Township and Howard Township.

Residents in the municipalities that own SMCAS already pay a $20 fee to defray the cost, but not in the form of an SAD. The cost was voted on and approved by these residents in years past and has been established for many years. The rate that residents would pay toward the SAD would not change. The only difference between what residents currently pay and the SAD would be that unincorporated parcels, such as farmland owners, would also be assessed the fee.

Two public meetings will take place to hear feedback from the public. The first public meeting will take place at 7 p.m. Aug. 17 at the Niles Charter Township Hall, 320 Bell Road.

A decision must be made because SMCAS funding runs out this year, according to Jim Ringler, a township trustee. The proposed SAD solution comes after months of meeting with the other municipalities who hold a stake in SMCAS and an attorney representing SMCAS.

Ringler has been attending the meetings and said the attorney recommended the solution.

“All of the owners have agreed that it is in the best interest of all the residents to have an ambulance service,” Ringler said.

Besides the other municipalities getting on board, trustees are also seeking the support of township residents.

Ringler asked for those making the decision to consider the importance of having an ambulance service to respond to emergency calls. Still he said he knew the SAD might raise questions.

“So you say, ‘how come we got to raise money at all for SMCAS?’” Ringler said. “If you go over to Huron Valley on the east side of the state, they do not have a government system.”

Due to the makeup of the area, made up partially by Medicaid or Medicare users, SMCAS is not able to garner enough money through insurance to sustain itself solely, Ringler said.

“We live in an area where they do not get reimbursed at the rates they should,” Ringler said. “So that is why it takes a little bit to defray the costs of running a first-rate ambulance service.”

Money from the SAD would become part of SMCAS’ general funds.

Trustee Chris Vella who serves as the treasurer of SMCAS relayed her perspective to those in attendance.

“Without the [SAD] it does not work,” Vella said. “The amount they have to write off because of Medicaid and Medicare is astronomical.”

Vella said approximately 60 to 70 percent of SMCAS users across Berrien and Cass County utilize Medicaid or Medicare. She said approximately half of SMCAS’ revenue comes from Medicare.

Residents in the municipalities that own SMCAS already pay a $20 fee to defray the cost, but not in the former of an SAD. The cost was voted on and approved by these residents in years past and has been established for many years, Vella said.

Vella emphasized the importance of SMCAS to the communities it serves.

“We have to have an ambulance service that has great staff and good training,” Vella said. “There is no alternative. We do not want to go with anybody else. We need SMCAS here.”