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CC3UNCfL AGENDA
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DATE 11 /04/98 ,
Finance Brenda Peper
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COUNCIL ACTION REQUEST
Resolution authorizing write-offs of the South Washington County Ambulance Accounts
Receivable in the amount of $57,429 and providing for an interfund transfer in the amount of
$57,429 from the General Fund (100) to the South Washington County Ambulance Fund (660)
BUDGET IMPLICATION $60,000 $57,429
BUDGETED AMOUNT ACTUAL AMOUNT FUNDING
SOURCE
ADVISORY COMMISSION ACTION
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❑ HUMAN SERVICES/RIGHTS
❑ ECONQMIC DEO/. AUTHORITY
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SUPPORTING QOCUMEfVTS
DATE REVIEWED
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APPROVED
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DENIED
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City Admmistrator date
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To: Ryan Schroeder
Honorable Mayor and City Council
From: Brenda Peper
Date: October 29, 1998
Re: Ambulance Write-offs
Introduction
The Council should consider writing off the Accounts Receivable for the Cottage
Grove bills for the South Washington County Ambulance Service that are not
collectable.
Background
Current write-offs are detailed below with comparative figures for the previous
two years. The 1998 write-offs are for calls prior to 1/1/98 that we have
determined are not col{ectable.
Medicare and Medicaid accounts for 42% of the write-offs, and 4% of the write-
offs are allowed by the worker's compensation law. These three types of write-
offs are mandatory and are not amounts that we can bill the patients for. We
revised our hardship guidelines in 1997 so I am listing this as a separate line
item. Hardship discounts consisted of 4°l0 of the write-offs. The remaining write-
offs are uncoliectable accounts. The closed by Agency accounts are higher this
year because we have written off the remainder of the accounts at our old
collection agency. In fact, 97% of the Closed by Agency accounts are from our
oid collection agency.
Discussion
7hese write-offs are 15% of the total doilars billed for the City of Cottage Grove.
This is consistent with the previous years.
Collection Process
We have been with a new collection agency for over a year and are currently
evaluating whether they are collecting a higher percentage of accounts
receivable than the old agency. After we have determined the effectiveness of
the new agency, we will decide if we need to improve the collection process.
Generai Fund Subsidy
The write-offs and contributions for operations are outlined in the fofiowing table.
This table shows the total contribution to the ambulance service for the last five
years. The contribute column represents the amount transferred from the
General Fund as outlined in SoWashCo Ambulance Joint Powers Agreement.
Action Requested
Adopt a resolution authorizing write-offs in the amount of $57,429 and a General
Fund Transfer in the amount of $57,429. We have budgeted a transfer of
$60,000 in the 1998 Budget.
RESO�UTION NO. 98-
RESO�UTION AUTHORIZING WRITE-OFFS OF THE SOUTH WASHINGTON
COUNTY AMBU�ANCE ACCOUNTS RECEIVABLE IN THE AMOUNT OF
$57,429 AND PROVIDING FOR AN INTERFUND TRANSFER IN THE
AMOUNT OF $57,429 FROM THE GENERAL FUND (100) TO THE SOUTH
WASHINGTON COUNTY AMBU�ANCE FUND (660)
WHEREAS, certain ambulance bills are determined not collectable;
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of
Cottage Grove, County of Washington, State of Minnesota, that invoices totaling
$57,429 be written off the general ledger accounts.
BE IT FURTHER RESO�VED, that an interFund transfer in the amount of
$57,429 from the Generai Fund to the South Washington County Ambulance
Fund be recorded.
Passed this 4` day of November, 1998.
John D. Denzer, Mayor
Attest:
Caron M. Stransky, City Clerk