I hope I'm sharing this right...it's my first time trying to reshare an update.
So, SehjMan was able to take care of this yesterday. As accordingto suggested, our first reaction (actually SehjMan's reaction, my only reaction was "I CAN'T BELIEVE THIS. I'M GOING TO SIMULTANEOUSLY GO HIDE IN BED AND ALSO PUNCH EVERYTHING") was that it might be a scam. However, when we went to the BCIWI official fire department page, the phone number on the website matched the one on the bill in the mail.
The ultimate outcome was that they have decided to waive the charge! After SehjMan explained everything to them, they needed the report number and verified with the police that I was the victim.
Although FYI, it is apparently perfectly legal to send a bill almost 2 years after an incident, and also legal to bill the victim of a hit-and-run. According to some research SehjMan did, there are some lawsuits in some states based on these billing practices.
I hope they go after the other driver, but I'm not sure they can, since he was never ticketed or anything, even though they know who he is.
Thanks for all the support yesterday! It was great to hear I wasn't out of line in thinking their bill was totally inappropriate and being super frustrated by it.