LIVERMORE FALLS – Area town officials want to know how proceeds from the sale of a town-subsidized ambulance service found their way into a scholarship fund.

At issue is the $286,750 Franklin Memorial Hospital paid for Community Emergency Services in 2000.

That money, except for $20,000 set aside to pay for ambulance equipment already ordered, was placed in a new entity, the Tri-Town Medical Foundation.

TTMF gives scholarships to students pursuing education in the medical field. Last year it gave out $10,000 in scholarship aid.

Jay, Livermore and Livermore Falls are faced with a July 1 deadline to sign up with FMH or find an alternative service.

FMH has informed town officials that their annual subsidy will increase from the current $27,000 to $142,000 next year, $165,000 in 2004-05 and $196,000 in 2005-06.

Two services have indicated an interest but they need local housing and officials are looking at the foundation to invest its funds to re-purchase the CES headquarters in Livermore.

At an April 1 meeting with foundation President Jim Johnsen and Vice President Gary Knight, they agreed to look into the matter but said they were concerned that it wouldn’t be allowed under their non-profit charter.

The foundation had decided not to be involved with the building purchase, according to a letter from Johnsen to Jay Town Manager Ruth Marden, who has been chairing the Ambulance Study Committee.

“Our position is that we are involved in scholarships for the youths and others in this area and the funds we have should be utilized for this purpose,” Johnsen wrote. “Diverting those funds would greatly reduce the number of persons we can help to further their education.”

Town officials responded negatively to what they called a cold letter, since they had expected the foundation directors to meet with them Tuesday afternoon.

“Many thousands of dollars were paid into CES by the communities,” Marden recalled. It’s nice to have the luxury of a scholarship fund but the investment of their assets should benefit all the people in these communities.”

Since there appears to be an aura of mystery about how the foundation was authorized, Livermore Falls Town Manager Alan Gove suggested all the people who had worked for CES over the years get together and see how they feel about the TTMF.

“A lot went into CES by a lot of people over the years, perhaps they could encourage them to change their minds and invest in the community, not just in scholarships,” he suggested. “They went from a service provider to a scholarship provider, something’s missing,” he said.

Kurt Schaub, administrative assistant for Livermore, admitted that CES was privately organized but noted that it had been publicly supported over the years.

He suggested that it might be a waste of community funds to try to undo the foundation. “What’s missing is their element of community spirit.”

“That $287,000 wouldn’t be in existence without the towns,” added Ron Smith, who is auditor for all three towns.

“There is a need for medical services in this area, it’s time this committee starts moving forward. It’s very unfair what they have done to you in the past three years.”

The committee will meet with three ambulance services, including FMH, on April 29, to hear their proposals.