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HomeMy WebLinkAboutFD Paramedic Tax Rates for Fiscal Year 2023-24____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: April 17, 2023 Disposition: Waived further reading of the Ordinance and referred to it by title only, and introduced the Ordinance Agenda Item No: 5.a Meeting Date: April 17, 2023 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Fire Prepared by: Darin White, Fire Chief Thomas Wong, Sr. Mgmt Analyst City Manager Approval: ______________ TOPIC: PARAMEDIC TAX RATES FOR FISCAL YEAR 2023-24 SUBJECT: INTRODUCE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AMENDING THE PARAMEDIC SERVICE SPECIAL TAX RATES WITHIN THE VOTER- APPROVED LIMIT, COMMENCING WITH FISCAL YEAR 2023-2024, FOR RESIDENTIAL UNITS AND NON-RESIDENTIAL STRUCTURES IN THE CITY OF SAN RAFAEL, COUNTY SERVICE AREA NO. 13, COUNTY SERVICE AREA NO. 19, AND THE MARINWOOD COMMUNITY SERVICES DISTRICT RECOMMENDATION: Waive further reading of the Ordinance and refer to it by title only, and introduce the Ordinance amending the Paramedic Service Special Tax rates within the voter-approved limit, commencing with fiscal year 2023-2024, for residential units and non-residential structures in the City of San Rafael, County Service Area No. 13, County Service Area No. 19, and the Marinwood Community Services District. BACKGROUND: In 1979, the voters of San Rafael approved a “Paramedic Service Special Tax” for the purpose of supporting a paramedic program. The original ordinance established Municipal Code Chapter 3.28. Included in that Chapter, under Section 3.28.060, is the authority of the City Council to set the tax rates based upon a budget recommendation by the City Manager. The tax was applied at a flat rate per residential dwelling. This tax was also approved by three separate jurisdictions that receive paramedic service from the City of San Rafael. These areas included the Marinwood Community Services District (CSD), County Service Area (CSA) No.13 (Upper Lucas Valley) and County Service Area (CSA) No. 19. In 1988, the voters approved an extension of the tax to improved non-residential structures, which was levied on a building square footage basis. In November 2006, the voters of San Rafael passed Measure P, subsequently designated as Ordinance No. 1846, which increased the ceiling on the residential tax rate to $85.00 per residential unit and to $0.11 per square foot of structures on non-residential property. All improved commercial and industrial sites were levied based upon Assessor square footage records for building size. The other service areas approved paramedic tax rate ceilings to coincide with San Rafael's measure. In November of 2006, CSA No. 13 approved Measure H and CSA No. 19 approved Measure I, each by a 2/3 majority. Both Measures SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 set the tax maximums at $85.00 for residential units and $0.11 cents per square foot for non-residential structures. Similarly, in November 2006, Marinwood CSD approved Measure M to establish the same tax ceilings. In November 2010, by a two-thirds vote, the voters of San Rafael passed Measure I, subsequently designated as Ordinance 1891, which amended the Paramedic Service Special Tax rate to increase the ceiling on the residential tax rate from $85.00 to $108.00 per residential unit and on the non-residential tax rate from $0.11 to $0.14 per square foot (based on Assessor records of square footage). In November 2011, the voters of CSA No. 13 and CSA No. 19 passed Measures E and F, respectively. These measures increased the ceiling on the residential tax rate from $85.00 to $95.00 per residential unit and on the non-residential tax rate from $0.11 to $0.132 per square foot for both service areas. Marinwood CSD continues under its Measure M at the rate of $85.00 for residential and $0.11 cents per square foot for non-residential. The purpose of this report is to present the proposed budget upon which the recommended tax rates for Fiscal Year 2023-2024 have been determined. ANALYSIS: Tax rates and paramedic charges are based upon recovering the cost of service. The cost of the paramedic program expenditures has been determined in a manner consistent with prior fiscal year trends, through the study of personnel costs and economic conditions. Through prudent fiscal management and the pursuit of additional revenue and reimbursement opportunities, this tax rate has increased by an average of 1.33% per year since 2012. The proposed increase would mark the fifth instance of rate increases for the City of San Rafael since fiscal year 2011-2012. Pursuant to San Rafael Municipal Code Section 3.28.060, annual rate increases must be approved by ordinance. So long as the new tax rates are within the voter-approved limits, the tax increase is not required to be approved by the voters. Based upon rising projected expenses outpacing revenue sources in future projections, the current rate is insufficient to cover the cost of providing the paramedic service to residents. Staff recommends a $4.00 increase in the tax rate for residential units in San Rafael to help cover increased paramedic service costs. The recommended increase will provide additional revenue stability for items such as grants and third-party billings that may vary from year to year as well as support the allocation of funds toward critical capital needs. This tax increase will provide additional revenues of approximately $91,484 annually: Jurisdiction Current Rates Proposed Rates Tax Ceiling Projected Revenue Increase San Rafael $104 / $0.140 $108 / $0.140 $108 / $0.14 $ 91,484 CSA No. 13 $95 / $0.132 $95 / $0.132 $95 / $0.132 $ - CSA No. 19 $95 / $0.132 $95 / $0.132 $95 / $0.132 $ - Marinwood $85 / $0.110 $85 / $0.110 $85 / $0.110 $ - The sources of funds projected to cover the fiscal year 2023-2024 program expenditures of $9,693,072 include paramedic tax, third party billings for medical emergency response and Medi-Cal reimbursements, federal grants and other revenues. Attachment II provides detailed information SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 regarding the proposed revenues and expenditures for Fiscal Year 2023-2024, as well as the estimated results for Fiscal Year 2022-2023, the previous three years of actual financial results, and three years of future year projections. Based on future projections, it is recommended that the fund balance is used as a reserve to account for expense and revenue variations. Staff recommends maintaining the current respective residential rates of $85 per residential unit in Marinwood CSD and $95 per residential unit in CSAs No.13 and No.19 as they have hit the cap. For non-residential structures, staff recommends maintaining the current rate of $0.11 per square foot in Marinwood CSD and $0.132 per square foot for CSAs No. 13 and No. 19 as they have hit the cap. Staff recommends increasing residential rates within the City of San Rafael by $4 to $108 per residential unit and maintaining the current non-residential rate of $0.14 per square foot of structures, both of which are the cap. (See Attachment III.) Adoption of this Ordinance will have no impact on the environment and is therefore categorically exempt from review under the California Environmental Quality Act (CEQA). COMMUNITY OUTREACH: Notice of the Public hearing on this matter was published in the Marin Independent Journal on April 7, 2023, per the attached Affidavit of Publication (See Attachment IV.) For the purpose of transparency and sharing relevant information to the service areas for whom emergency medical services are provided, all service areas have been advised of the recommendations contained in this report through discussions and correspondence with the Fire Chief. FISCAL IMPACT: The budget as presented is within the voter-approved tax rates for both the residential and non-residential (commercial and industrial) ratepayers in all jurisdictions, therefore Proposition 218 does not require voter approval of the proposed increases. The paramedic services are accounted for in the Emergency Medical Services Special Revenue Fund. This fund operates self-sufficiently with revenues from paramedic taxes, third-party medical billings and other reimbursements. The total expenditures for Fiscal Year 2023-24 are projected to be $9,693,072. If the increase is approved, total revenue for Fiscal Year 2023-24 is projected to be $8,949,660. If expenditures exceed revenues in Fiscal Year 2023-24, they will be supplemented using existing fund balance. The Paramedic Tax Fund final budget, which will include changes, if any, to the proposed budget, will be incorporated into the 2023-24 City-wide operating budget, which will be brought to Council for adoption in June 2023. RECOMMENDED ACTION: Waive further reading of the Ordinance and refer to it by title only and introduce the Ordinance amending the Paramedic Service Special Tax rates within the voter-approved limits, commencing with Fiscal Year 2023-24, for residential units and non-residential structures in the City of San Rafael, County Service Area No. 13, County Service Area No. 19, and the Marinwood Community Services District. ATTACHMENTS: 1. Attachment I Ordinance 2. Attachment II (FY 23-24 Paramedic Tax Budget) 3. Attachment III (Paramedic Rate and Ratio History) 4. Attachment IV (Affidavit of Publication of Notice of Public Hearing in Marin IJ – April 7, 2023) Page 1 of 3 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AMENDING THE PARAMEDIC SERVICE SPECIAL TAX RATES WITHIN THE VOTER-APPROVED LIMITS, COMMENCING WITH FISCAL YEAR 2023-2024, FOR RESIDENTIAL UNITS AND NON-RESIDENTIAL STRUCTURES IN THE CITY OF SAN RAFAEL, COUNTY SERVICE AREA NO. 13, COUNTY SERVICE AREA NO. 19, AND THE MARINWOOD COMMUNITY SERVICES DISTRICT WHEREAS, the electors of the City of San Rafael in 1979 and in 1988, adopted a Paramedic Service Special Tax (Chapter 3.28 of the San Rafael Municipal Code) to be imposed annually upon all residential units and non-residential structures within the City of San Rafael; and WHEREAS, the City, pursuant to three separate agreements, provides paramedic services to Marinwood Community Services District, County Service Area No. 13, and County Service Area No. 19; and WHEREAS, on November 2, 2010, the electors of the City of San Rafael approved Measure “I”, subsequently designated as Ordinance No. 1891, increasing the ceiling on the Paramedic Service Special Tax rate to $108.00 per residential unit and to $0.14 per square foot of non-residential structures; and providing a corresponding increase in the appropriations limit; and WHEREAS, the current annual Paramedic Service Special Tax rate in the city limits of the City of San Rafael is $104.00 per residential unit and $0.140 per square foot of non- residential structures; and WHEREAS, Paramedic Service Special Tax rates were approved by the electors of County Service Area No. 13 and County Service Area No. 19 by elections held in November 2006 and November 2011, and by the electors of Marinwood Community Services District by an election held in November 2006; and WHEREAS, the current annual Paramedic Service Special Tax rates in County Service Area No. 13, and County Service Area No. 19, are $95.00 per residential unit and $0.132 per square foot of non-residential structures, which rates are the maximum rates approved by voters in those County Service Areas; and WHEREAS, the current annual Paramedic Service Special Tax rates in the Marinwood Community Services District are $85.00 per residential unit and $0.11 per square foot of non-residential structures, which rates are the maximum rates approved by voters in that Community Services District; and WHEREAS, the City Council, after reviewing the proposed budget recommendation of the City Manager, finds that for the City of San Rafael, the basic rate is insufficient to cover the cost of providing the paramedic service to San Rafael residents; and WHEREAS, the City of San Rafael annual Paramedic Service Special Tax rates should be adjusted to $108.00 per residential unit, and remain at $0.140 per square foot of non-residential structures; for the County Service Area No. 13 and County Service Area No. 19, the annual Paramedic Service Special Tax rates should remain at $95.00 per residential unit, and remain at $0.132 per square foot of non-residential structures; and that for Marinwood Community Services District, the annual Paramedic Tax rates should remain at Page 2 of 3 $85.00 per residential unit, and remain at $0.11 per square foot of non-residential structures; these rates will cover the cost of providing paramedic services within these service areas for fiscal year 2023-2024; and WHEREAS, County Service Area No. 13 and County Service Area No. 19, based upon budgets recommended to them, have advised the City that they approved of the continuing of the annual Paramedic Service Special Tax rates within their respective jurisdictions, at $95.00 per residential unit, and at $0.132 per square foot of non-residential structures; and WHEREAS, Marinwood Community Services District, based upon budgets recommended to them, have advised the City that they approved of the continuing of the annual Paramedic Service Special Tax rates within its jurisdiction, at $85.00 per residential unit, and at $0.11 per square foot of non-residential structures. NOW THEREFORE, the City Council of the City of San Rafael does ordain as follows: Division 1. Pursuant to San Rafael Municipal Code Section 3.28.060, the City Council hereby sets the tax rate for paramedic services within City limits commencing in fiscal year 2023-2024, at $108.00 per year for each residential unit, and $0.140 per square foot for non-residential structures. Division 2. The City Council hereby sets the Paramedic Tax Rates for County Service Area No. 13 and County Service Area No. 19, commencing with fiscal year 2023- 2024, at $95.00 per year for each residential unit, and $0.132 per square foot for each non- residential structure. Division 3. The City Council hereby sets the Paramedic Tax Rates for Marinwood Community Services District, commencing with fiscal year 2023-2024, at $85.00 per year for each residential unit, and at $0.11 per square foot for each non-residential structure. Division 4. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid, such holding or holdings shall not affect the validity of the remaining portions of this ordinance and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid. Division 5. This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published, and circulated in the City of San Rafael, and shall be in full force and effect thirty (30) days after its final passage. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California. _________________ KATE COLIN, Mayor Attest: _____________________ LINDSAY LARA, City Clerk Page 3 of 3 The foregoing Ordinance was first read and introduced at a Regular Meeting of the City Council of the City of San Rafael, held on the 17th day of April 2023, and will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of the Council to be held on the 1st day of May 2023. AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: _____________________ LINDSAY LARA, City Clerk Attachment IISan Rafael Residential/Non-Residential$95 / 0.1320 $99 / 0.1400 $99 / 0.1400 $104 / 0.1400 $108 / 0.1400 $108 / 0.1400 $108 / 0.1400 $108 / 0.1400Preliminary Actual Actual Actual Estimated Budget Projected Projected Projected2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027Paramedic Tax (a)4,884,029$ 5,109,206$ 5,108,360$ 5,225,000$ 5,318,560$ 5,318,000$ 5,318,000$ 5,318,000$ Paramedic Tax: Prior Year Billings 38,488 44,243 1,476 - - - - - Fire Dept.: 3rd Party Billing 2,698,523 2,199,287 3,026,076 3,000,000 3,000,000 3,060,000 3,121,000 3,183,000 Federal Grant - GEMT 108,829 118,007 - 130,000 130,000 130,000 130,000 130,000 Other Revenue 70,096 50,881 58,015 51,000 51,100 51,100 51,100 51,100 IGT-Intergovernmental Transfer 504,324 510,889 426,685 426,000 450,000 450,000 450,000 450,000 Total Revenues8,304,289$ 8,032,512$ 8,620,612$ 8,832,000$ 8,949,660$ 9,009,100$ 9,070,100$ 9,132,100$ Personnel Costs 5,800,930$ 5,940,094$ 6,429,501$ 6,368,738$ 7,180,385$ 7,324,000$ 7,471,000$ 7,620,000$ Supplies and Services 1,640,902 1,674,392 1,896,227 2,060,078 2,512,687 2,184,000 2,227,000 2,272,000 Total Expenditures7,441,832$ 7,614,486$ 8,325,728$ 8,428,817$ 9,693,072$ 9,508,000$ 9,698,000$ 9,892,000$ Revenues Over/Under Expenditures 862,457$ 418,026$ 294,884$ 403,183$ (743,412)$ (498,900)$ (627,900)$ (759,900)$ Fund balance, beginning of year 813,348$ 726,005$ 845,031$ 832,602$ 1,235,785$ 492,373$ (6,527)$ (634,427)$ Transfer to Capital Fund (b)(949,800)$ (299,000)$ (307,313)$ -$ -$ -$ -$ -$ Fund balance, end of year726,005$ 845,031$ 832,602$ 1,235,785$ 492,373$ (6,527)$ (634,427)$ (1,394,327)$ (a) FY 23-24 Paramedic Tax Assumes an increase in tax in San Rafael to $108 per living unit and $0.140 per sq. ft. non-residentialFor illustrative purposes - Assumes 2% expense increaseParamedic Tax Budget FY 23-24(b) Fund is to maintain a 10% operations reserve and the remainder is to be transferred to support capital improvements for the paramedic program. The transfer occurs annually after year-end numbers are finalized. ATTACHMENT III CITY OF SAN RAFAEL HISTORY OF TAX RATES AND CAPS Fiscal Residential Authorized Non-Residential Authorized Year Tax Rate Cap Tax Rate Cap 2013-14 89.00$ 108.00$ 0.1200$ 0.1400$ 2014-15 $ 89.00 $ 108.00 0.1200$ 0.1400$ 2015-16 $ 89.00 $ 108.00 0.1200$ 0.1400$ 2016-17 $ 89.00 $ 108.00 0.1200$ 0.1400$ 2017-18 $ 92.00 $ 108.00 0.1250$ 0.1400$ 2018-19 $ 95.00 $ 108.00 0.1320$ 0.1400$ 2019-20 $ 95.00 $ 108.00 0.1320$ 0.1400$ 2020-21 $ 99.00 $ 108.00 0.1400$ 0.1400$ 2021-22 $ 99.00 $ 108.00 0.1400$ 0.1400$ 2022-23 adopted $ 104.00 $ 108.00 0.1400$ 0.1400$ 2023-24 proposed $ 108.00 $ 108.00 0.1400$ 0.1400$ CSA# 13, and CSA# 19 HISTORY OF TAX RATES AND CAPS Fiscal Residential Authorized Non-Residential Authorized Year Tax Rate Cap Tax Rate Cap 2013-14 89.00$ 95.00$ 0.1200$ 0.1320$ 2014-15 89.00$ 95.00$ 0.1200$ 0.1320$ 2015-16 89.00$ 95.00$ 0.1200$ 0.1320$ 2016-17 89.00$ 95.00$ 0.1200$ 0.1320$ 2017-18 92.00$ 95.00$ 0.1250$ 0.1320$ 2018-19 95.00$ 95.00$ 0.1320$ 0.1320$ 2019-20 95.00$ 95.00$ 0.1320$ 0.1320$ 2020-21 95.00$ 95.00$ 0.1320$ 0.1320$ 2021-22 95.00$ 95.00$ 0.1320$ 0.1320$ 2022-23 adopted 95.00$ 95.00$ 0.1320$ 0.1320$ 2023-24 proposed 95.00$ 95.00$ 0.1320$ 0.1320$ MARINWOOD (CSD) HISTORY OF TAX RATES AND CAPS Fiscal Residential Authorized Non-Residential Authorized Year Tax Rate Cap Tax Rate Cap 2013-14 85.00$ 85.00$ 0.1100$ 0.1100$ 2014-15 85.00$ 85.00$ 0.1100$ 0.1100$ 2015-16 85.00$ 85.00$ 0.1100$ 0.1100$ 2016-17 85.00$ 85.00$ 0.1100$ 0.1100$ 2017-18 85.00$ 85.00$ 0.1100$ 0.1100$ 2018-19 85.00$ 85.00$ 0.1100$ 0.1100$ 2019-20 85.00$ 85.00$ 0.1100$ 0.1100$ 2020-21 85.00$ 85.00$ 0.1100$ 0.1100$ 2021-22 85.00$ 85.00$ 0.1100$ 0.1100$ 2022-23 adopted 85.00$ 85.00$ 0.1100$ 0.1100$ 2023-24 proposed 85.00$ 85.00$ 0.1100$ 0.1100$ Fiscal Year Residential Non-Residential 2013-14 63.50% 36.50% 2014-15 63.60% 36.40% 2015-16 63.60% 36.40% 2016-17 56.99% 43.01% 2017-18 53.97% 46.03% 2018-19 53.40% 46.60% 2019-20 53.35% 46.65% 2020-21 52.77% 47.23% 2021-22 52.79% 47.21% 2022-23 adopted 53.88% 46.12% 2023-24 proposed 54.76% 45.24% Paramedic Tax Ratio Legal No. Marin Independent Journal 4000 Civic Center Drive, Suite 301 San Rafael, CA 94903 415-382-7335 legals@marinij.com I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years , and not a party to or interested in the above matter. I am the principal clerk of the printer of the MARIN INDEPENDENT JOURNAL, a newspaper of general circulation, printed and published daily in the County of Marin, and which newspaper has been adjudged a newspaper of general circulation by the Superior Court of the County of Marin, State of California, under date of FEBRUARY 7, 1955, CASE NUMBER 25566; that the notice, of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: 04/07/2023 I certify (or declare) under the penalty of perjury that the foregoing is true and correct. Dated this 11th day of April, 2023. PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA County of Marin Signature PROOF OF PUBLICATION 0006744190 2070419 CITY OF SAN RAFAEL 1400 FIFTH AVENUE CITY CLERK, ROOM 209 SAN RAFAEL, CA 94901 r.BP7-11/10/16 1