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Insurers may be billed for fire co. runs

City council seeks revenue

A new way to get more revenue for Butler was brought up at Tuesday's city council meeting.

Councilman Kathy Kline presented the idea of billing insurance companies for runs made by the fire department.

“It's a little stream of revenue that we have never gone after before,” Kline explained. “They're hidden fees. If you have insurance, you pay it, and that money has just been staying with the insurance companies.”

This program would be done in conjunction with Pennsylvania Fire Recovery Service, a company that brought in $2.3 million in revenue last year and is projecting more than $3 million this year.

“With this being a company in our commonwealth, and the success rate that it has, sure, why shouldn't we pursue it?” Kline said. “It could be the difference of maybe $50,000, $60,000 a year. It's these little hidden services that can just inch the city forward a little bit.”

The fire department cannot bill for manpower, but it can bill for other services.

Fifteen percent of the revenue collected would go to the Pennsylvania Fire Recovery Service, while 85 percent would go to the city.

The city also would be eligible to get revenue from emergency calls made over the past two years. If the city took advantage of that eligibility, 35 percent of that revenue will go to Pennsylvania Fire Recovery Services and 65 percent would go to the city.

The council will discuss this proposal at Thursday's meeting.

“This is what we're looking for — a revenue stream that is nontax money,” Mayor Tom Donaldson said at the meeting.

Kline said she could have program in effect in a week.

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