State Law Changes How Dunkirk Pays Volunteer Firefighters

From the Dunkirk City Council meeting on July 27, 2026

A new state law effective July 1, 2026, changed how cities reimburse volunteer firefighters, creating administrative and budget complications for Dunkirk.

Under the old system, the city paid a lump sum to the volunteer fire department under a contract, and the department distributed funds internally. The new law requires the city to pay a $250 clothing allowance and a $250 vehicle allowance directly to each active volunteer firefighter individually.

The city attorney researched IRS guidance and believes these payments are taxable income unless structured as an "accountable plan" requiring documented receipts and return of excess funds. If taxable, the city would need to add all active volunteers to its payroll system, even for a single annual payment. The mayor raised concern that putting volunteers on payroll could trigger questions about whether they must be added to the city's health insurance plan.

The statute does not define what qualifies as an "active" volunteer. The fire chief or department would need to set that standard. The city is still under this year's contract; the new rules will affect next year's negotiations.

Source: Meeting transcript — City of Dunkirk - City Council Meeting - July 27, 2026

Some information may be inaccurate due to video audio quality.