An estimated $1.4 million is projected to be written off by the East Fork Fire & Paramedic Districts next year, most of which is due to bills disallowed by Medicare.
Chief Tod Carlini told Douglas County commissioners sitting as the districts' board of trustees that part of the money is bad debts.
"But the majority is Medicare and we have no choice," he said.
The write-off accounts for roughly a tenth of the district's $14.74 million budget.
Carlini said revenues for the districts were down $89,488 over last year.
He proposed budget reductions of $313,434, which included cutting the number of seasonal firefighters the district hires.
Instead of the 22 seasonal firefighters the district had last year, it will only hire 13 this year.
That will cut the number of wildfire strike teams from four to two, which will be stationed at the north and south ends of the county.
Carlini said he felt there was a perception that the fire and paramedic districts had plenty of money.
"The perception that East Fork has an abundance of money is a concern of mine," he said. "The feeling that money isn't a problem needs to be changed to one that it can be and it is a problem."
When the fire district had a large volunteer force, most of its money would go into equipment.
But the number of the district's volunteers able to fight a fire had decreased significantly over the past five years, dropping from 123 in 2006 to just 49 in 2010.
Volunteers still contribute to the district's bottom line, though.
Carlini said 71.5 percent of the district's budget is dedicated to wages and benefits. That number would be closer to 82 percent if it weren't for the volunteer firefighters.
Carlini said the district had 4,904 calls for service in 2009, and expected a similar number in 2010.
