Committee members and city staff discussed whether to create a dedicated equipment fund to save for large purchases such as ladder trucks and fire engines, and whether ambulance billing rates and collection practices should be updated to increase revenue. The committee did not adopt a fund or change billing policy; members asked staff for further analysis and data for a future finance meeting.

Vice Mayor Ms. Weiser and others warned that creating department-specific, restricted funds reduces budget flexibility. “When you start tagging certain revenues ... you begin to break down the idea of a unified budget,” Ms. Weiser said, adding that separate funds can create “little fiefdoms.”

Chief Perko (referred to in the meeting as the chief) described the origin of the idea: after discussion around the purchase of a ladder truck, staff explored options to build reserves for future large purchases by placing portions of ambulance billing revenue into a fund. “This discussion started ... when we were discussing the purchase of a new ladder truck,” Chief Perko said, summarizing an analysis of replacement cycles and projected ambulance revenues and arguing that cost increases and supply-chain issues could make future engines cost as much as the recently purchased ladder truck.

Committee members also questioned whether the city can raise ambulance billing amounts. Staff and a council member explained that insurer reimbursement rules and contract terms influence what the city can collect. A staff member said the city currently soft-bills rather than sending patients to collections and that reimbursement rates from government programs and insurers determine revenue. “We bill insurance. So insurance is what dictates the rates. We can't raise rates,” one council member said. Javier noted that CitizenServe training is available for the staff who would manage billing and that the department does not generally expect new hires to have prior experience with the software.

Members requested a set of materials before making policy choices: comparative reimbursement and billing practices, recent receivables and collections trends, examples of county or regional recommended rates, and a five-year capital projection showing anticipated equipment replacement needs. The vice mayor asked staff to prepare the analysis for the committee's next quarterly finance meeting; staff agreed to provide more detailed spreadsheets and to see whether a representative from the billing contractor could attend to explain contract terms.

No motion was made to create a dedicated equipment fund during the meeting. Committee members voiced differing preferences: some supported a single, non-dedicated sinking fund to encourage discipline while maintaining flexibility; others expressed caution about dedicating ambulance or citation revenues exclusively to equipment. The committee agreed to continue the discussion at a future finance meeting after staff provides the requested financial detail.