Colts Neck fire captain pitches insurer billing to fund volunteer incentives

Colts Neck Fire Department Captain Ray Chabell told the township committee on Aug. 13 that the department has submitted a draft ordinance to allow a third‑party vendor to bill insurers for emergency responses and deposit receipts into a separate fund to pay training and modest volunteer incentives.

"We had tentatively submitted an ordinance, which provides for an incentive program whereby the fire department would bill for each incident that occurs in the town where the fire department has to respond," Chabell said, and he gave fee examples used elsewhere, saying a motor‑vehicle incident might be billed at about $602, a car fire about $838 and an extrication around $1,811. He said the municipality would use a contractor for collections and that vendors commonly charge 20–25 percent for collection services.

Chabell described safeguards built into the model: collections would normally go to insurers rather than residents, the township could waive collection in cases where a resident’s insurance paid only part of a claim, and funds would be held in a dedicated account to support training and incentives rather than general revenue. "We have the discretion to say, you don't go after that," he said of collections a resident might reasonably struggle to pay.

Committee members pressed for specifics. A council member asked whether towns could legally treat residents and nonresidents differently; Chabell said other municipalities, including Milltown and some Freehold area towns, use similar programs and publish rules that distinguish resident protections from nonresident billing. The committee asked the fire department and the executive fire council (EFC) to provide a list of local examples and to run a pro forma based on last year’s call volume so the township can estimate revenue and likely incentive amounts.

Officials also questioned administrative details: whether incentive payments would be taxable ("There would have to be" a 1099, Chabell said), how points would be tallied for overnight versus daytime calls, and the cost of vendor contracts and specialized maintenance (Chabell estimated an annual records/contract line at roughly $7,000 and maintenance for an air‑bottle fill station at $4,000–$5,000). Chabell emphasized that collection levels are uncertain and that the program is intended as an incentive—to improve volunteer recruitment and to offset budget shortfalls—rather than a guaranteed revenue stream.

Mayor Tara Torsha Buss and other members urged the department to return with comparative data and a recommended schedule showing how proceeds would be split among incentives, training and administrative costs. The draft ordinance remains under review by the township and the EFC; no final vote was taken at the meeting.