A significant financial discrepancy has emerged between the City of Edmonds and the South County Fire Regional Fire Authority (RFA). According to public records, the RFA may owe the city millions of dollars in transport fees collected but not remitted. This issue stems from a contract that mandates the RFA to collect and transfer all transport fees generated by emergency medical services (EMS) to the city. However, it appears that a substantial portion of these funds has been retained by the RFA, particularly through the Ground Emergency Medical Transportation (GEMT) program. The potential debt could exceed million, with current estimates suggesting an annual impact of million or more. The situation has led to concerns about transparency and accountability, especially as the city considers joining the RFA.

The Contractual Obligation and Revenue Discrepancy

The relationship between Edmonds and South County Fire RFA is governed by a detailed contract that outlines various provisions, including the handling of transport fees. These fees are generated whenever an EMS unit transports individuals from one location to another, such as from an accident scene to a hospital. The agreement stipulates that the RFA must collect and pursue payment for all transport fees and subsequently transfer the collected amounts to the city. Despite this clear directive, a significant portion of the revenue has not reached Edmonds' coffers, raising questions about compliance and financial management.

In practice, transport fees are collected in two ways: directly from patients or their insurance providers, and through the GEMT program, which provides supplemental payments to cover funding gaps. While direct payments have generally been remitted to the city, the GEMT reimbursements have not. Instead, these funds have been retained by the RFA, potentially amounting to millions of dollars over the years. The discrepancy has become a point of contention, as the city believes it is entitled to this revenue per the contract terms. The retention of these funds has also benefited neighboring cities, further complicating the situation. The city's negotiating team was aware of this issue during annexation discussions but did not leverage it effectively, leading to missed opportunities for a better deal or postponement of the annexation.

The Financial Impact and Next Steps

The financial implications of the unpaid transport fees are substantial. Analysis of RFA budgets suggests that the city could be owed upwards of million in past unreimbursed fees. With escalating costs, the annual impact on the city's budget could be around million or more. The retained funds have been used by the RFA to reduce costs for its member cities, effectively diverting resources that should have benefited Edmonds. The situation has escalated to the point of litigation, with South County Fire acknowledging the debt but disputing the exact amount. A state audit is scheduled, but the delay in payment could mean spreading liability over a larger tax base if Edmonds joins the RFA, potentially resulting in taxpayers paying additional costs to their own city.

To address this issue, residents and officials are encouraged to take several actions. Contacting elected officials to demand explanations and solutions is crucial. Engaging with South County Fire RFA to inquire about the status of the missing funds is equally important. Additionally, voting "no" on the upcoming annexation ballot measure in April could provide the negotiating team with time to explore less costly alternatives. Extending the contract would allow for a thorough evaluation of viable options that could be supported by the yearly GEMT revenue. Ultimately, resolving this financial dispute is essential for ensuring fair treatment and responsible financial management for the citizens of Edmonds.