Orange County NC Website
Browse       Search
1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: September 5, 2023 <br /> Action Agenda <br /> Item No. 8-h <br /> SUBJECT: Relief from Collecting Emergency Management Service Ambulance Bill Debts <br /> DEPARTMENT: Tax Administration <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> North Carolina General Statute 44-51.4 Nancy Freeman, Tax Administrator, <br /> EMS Ambulance Bill Uncollectable (919) 245-2735 <br /> Report Through December 31, 2017 <br /> PURPOSE: To approve writing off Emergency Management Service (EMS) ambulance bills owed <br /> to Orange County created from January 1, 2003 to December 31, 2017 that are considered <br /> uncollectable. <br /> BACKGROUND: The Tax Collector's office began the billing and collection for EMS ambulance <br /> services in 1996. In May 2000, Orange County adopted a resolution to allow ambulance bills to <br /> be collected in the same manner as ad valorem taxes per North Carolina General Statute (NCGS) <br /> 44-51.4 for up to ten years from the date of service. <br /> At the direction of the Board of Commissioners at that time, the Tax Collector's office has <br /> consistently used a softer collection approach for ambulance bills, intentionally not utilizing the full <br /> extent that the resolution allows. However, the debts that are listed on the EMS Ambulance Bill <br /> Uncollectable Report have been reviewed, and the collections remedies have been exhausted for <br /> these bills. Staff research has shown that the vast majority of the collection on ambulance bills <br /> occurs in the first five years, even though NCGS 44-51.4 allows for collection through ten years. <br /> Staff is requesting to release due bills created January 1, 2003 through December 31, 2017. <br /> After recommendation from the County's auditing firm in 2022, and based on detailed discussion <br /> with Finance & Administrative Services Director Gary Donaldson and Emergency Services <br /> Director Kirby Saunders, staff believes that good accounting practice would be to release these <br /> debts from the charge and system maintained by the Tax Collector. <br /> In addition, for 2024 and future years, the Tax Collector will submit an annual write-off request for <br /> uncollectable ambulance bills. The annual request will be submitted as part of the annual Tax <br /> Collectors Settlement presented to the Board for approval each September. <br /> FINANCIAL IMPACT: There is no impact to the County's balance sheet or fund balance from <br /> releasing these accounts. Due to the age of these account balances, the accounts have been <br />