Agenda - 09-05-2023; 8-h - Relief from Collecting Emergency Management Service Ambulance Bill Debts

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