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University Heights council creates EMS vehicle capital fund using ambulance billing revenue
Summary
Council adopted an ordinance to set up a dedicated capital fund for EMS equipment to be funded by a portion of monthly ambulance-billing revenue; the ordinance caps redirected revenue at $50,000 per year and passed after council debate about billing, third-party administrators and long-term vehicle replacement needs.
The University Heights City Council approved an ordinance to establish a dedicated capital project fund for acquisition of EMS vehicles and related equipment, funded by a portion of the city’s ambulance-billing revenue.
City finance staff proposed directing 12% of monthly ambulance-billing receipts into the new fund, with an initial cap of $50,000 per year. Finance Director (Mister Kennedy) told council the ambulance-billing system (administered by a third party called LifeForce) currently generates about $400,000 in gross annual revenue and that redirecting up to $50,000 would create a predictable stream for vehicle replacement and capital needs.
“Mister Kennedy” said the ordinance would create a dedicated capital-project fund that draws the revenue directly rather than routing it into the general fund, and he described the proposal as a way to begin accumulating resources for long-term equipment replacement. The chief of the fire/EMS department (name not specified) reminded council that vehicle and apparatus prices have risen and that the department previously presented a 30-year replacement outlook; the chief said that model originally estimated a 30-year replacement need of about $9.3 million (a figure that was discussed and clarified during the meeting).
Council members raised several questions during the debate: whether the city can influence insurer reimbursement rates, whether the city is receiving the full allowable payments under Medicare/Medicaid and whether the existing third-party billing arrangement should be rebid or renegotiated. Staff said the city needs to update its fee schedules and reporting to capture state reimbursements where available, and that a review of the billing contract would be prudent.
Council discussion also touched on fiscal tradeoffs. Some members cautioned that diverting revenue into a capital fund should not reduce resources for salaries and day-to-day operations; others said dedicating ambulance-billing revenue to capital would improve long-term planning for expensive apparatus like ladder trucks and ambulances.
Council then moved, seconded and voted to adopt the ordinance. Roll-call votes were recorded and the measure passed. The ordinance language in the meeting materials included a 12% allocation of ambulance-billing receipts to the new fund and a $50,000 annual cap unless amended by future council action.
The council directed staff to return with additional details about billing practices, potential prepayment or collection processes and suggested updates to codified fee schedules and any statutes or state reporting needed to secure additional reimbursement.
