HomeMy WebLinkAboutFIN Paramedic Tax FY 18-19____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 5/07/2018
Disposition: Passed Ordinance 1958 to Print
Agenda Item No: 6.a
Meeting Date: May 7, 2018
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: FINANCE
From: Mark Moses
Finance Director
City Manager Approval: ______________
TOPIC: PARAMEDIC TAX RATE FOR FY 2018-19
SUBJECT: CONSIDERATION TO ADOPT AN ORDINANCE TO ESTABLISH A TAX RATE FOR
FISCAL YEAR 2018-2019 FOR PARAMEDIC SERVICES FOR BOTH RESIDENTIAL
AND NON-RESIDENTIAL PROPERTIES IN THE CITY OF SAN RAFAEL, CSA 13,
CSA 19 AND MARINWOOD CSD AS PROVIDED FOR IN THE VOTER-APPROVED
PARAMEDIC SERVICES SPECIAL TAX
RECOMMENDATION: Hold a public hearing and pass the Ordinance to print setting the Paramedic
Tax rates for 2018-2019 for residential and non-residential properties.
BACKGROUND: In 1979, the voters of San Rafael approved a new 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 No.13 (Upper Lucas Valley) and County Service Area No. 19.
In 1988, the voters approved an extension of the tax to improved non-residential properties, which was
levied on a square footage basis.
In 1996, Proposition 218 was passed by California voters limiting local governments’ ability to
implement new or raise existing taxes, assessments and other property-related fees. Effectively, under
Proposition 218, no tax can be added or increased without 2/3 voter approval.
In November 2006, the voters of San Rafael passed Measure P, subsequently designated as
Ordinance 1846, which increased the ceiling on the residential tax rate to $85.00 per living unit and to
$0.11 per square foot 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 set
the tax maximums at $85.00 for residential and $0.11 cents per square foot for non-residential.
Similarly, in November 2006, Marinwood CSD approved Measure M to establish the same tax ceilings.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
In November 2010, the voters of San Rafael passed Measure I, subsequently designated as Ordinance
1891, which increased the ceiling on the residential tax rate from $85.00 to $108.00 per living unit and
on the non-residential tax rate from $0.11 to $0.14 per square foot (based on Assessor records of
square footage). This vote was conducted in accordance with Proposition 218 requirements.
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 living 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. That district does not have current plans to introduce a rate increase
issue on future ballots.)
The purpose of this report is to present the proposed budget upon which the recommended tax rates
for fiscal year 2018-2019 have been determined, and the corresponding ordinance that would
implement the recommended rates. This report was reviewed at the San Rafael City Council Finance
Committee public meeting of April 26, 2018. The Committee is supportive of staff’s recommendations.
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, 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 less than 0.6% per year since 2012. This is only the second increase since fiscal year
2011-2012.
Based upon rising projected expenses and declining revenues presented in the proposed budget and
future projections (see Attachment I), staff recommends a $3.00 increase in the tax rate for residential
living units and a $0.007 cent increase per square foot for buildings on non-residential properties in San
Rafael, CSA 19, and CSA 13. Since some of the paramedic program revenue sources vary year to year
(such as grants) or are subject to change (such as third-party billings), the recommended increase will
provide additional revenue stability, covering known costs and supporting the allocation of funds toward
critical capital needs.
The increase in tax will provide additional revenues of approximately $197,353 annually:
Jurisdiction
Current
Rates *
Proposed
Rates *
Tax
Ceiling *
Projected
Revenue
Increase
San Rafael $92 / $0.125 $95 / $0.132 $108 / $0.14 $ 186,109
CSA No. 13 $92 / $0.125 $95 / $0.132 $95 / $0.132 $ 1,956
CSA No. 19 $92 / $0.125 $95 / $0.132 $95 / $0.132 $ 9,288
Marinwood $85 / $0.11 $85 / $0.11 $85 / $0.11 $ -
The sources of funds projected to cover the fiscal year 2018- 2019 program expenditures of $7,578,000
include paramedic tax, third party billings for medical emergency response and Medi-Cal
reimbursements, paramedic tax back billings, federal grants and other revenues. Attachment I provides
details of the proposed revenues and expenditures for fiscal year 2018-2019, as well as the estimated
results for fiscal year 2017-2018, the previous three years of actual financial results, and three years of
future projections. In collaboration with the County, the City of San Rafael is in the process of exploring
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
a community paramedicine pilot project to expand paramedic services out of the 9-1-1 system use for
frequent patients. The purpose of this is to provide preventative care to some members of the
community in an effort to reduce the reliance on 9-1-1 calls. This program will cover all service areas
and will be a pilot project during the fiscal year 2018-2019 and will be re-evaluated after that time.
Of the fund balance, a reserve of 10% of the year-over-year change in expenses is recommended to be
set aside for future operational needs to support unexpected revenue or expenditure variances. The
remaining fund balance is recommended to be allocated to the Essential Facilities Phase II capital
project. Policy guidelines governing the accumulation and use of such funds will be recommended to
the Finance Committee, prior to their disposition.
Staff recommends maintaining the current respective residential rate of $85 per living unit in Marinwood
CSD and changing rates for the City and CSAs No.13 and No.19 to $95 per living unit (Attachment II).
For nonresidential properties, staff recommends maintaining the current rate of $0.11 per square foot in
Marinwood CSD and changing rates for the City and CSAs No. 13 and No. 19 to $0.132 per square
foot.
Notice of the Public hearing on this matter was published in the Marin Independent Journal on April 27,
2018, per the attached Affidavit of Publication. (See Attachment III).
COMMUNITY OUTREACH: 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 recommended rate changes 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.
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 2018-2019 are projected to be $7,578,000,
if the tax rate increase is approved. Total resources (including fund balance and projected revenues)
exceed this amount. An Emergency Medical Services Fund final budget, which will include changes, if
any, to the proposed budget, will be incorporated into the City-wide operating budget for adoption on
June 18, 2018.
The Ordinance attached sets residential and non-residential paramedic tax rates in the San Rafael City
limits and in the three other jurisdictions in which services are provided.
RECOMMENDED ACTION: Staff recommends that City Council hold a public hearing, accept the
report, and pass the Ordinance to print.
ATTACHMENTS:
1. Ordinance
2. Attachment I (FY 18-19 Paramedic Tax Budget)
3. Attachment II (Paramedic Rate and Ratio History)
4. Attachment III (Affidavit of Publication of Notice of Public Hearing in Marin IJ on April 27, 2018)
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 LIMIT, COMMENCING WITH FISCAL YEAR 2018-2019,
FOR RESIDENTIAL AND NON-RESIDENTIAL PROPERTIES IN THE CITY
OF SAN RAFAEL, COUNTY SERVICE AREA NO. 13, AND COUNTY
SERVICE AREA NO. 19. ($95.00 FOR RESIDENTIAL AND $0.132 PER
SQUARE FOOT FOR NON-RESIDENTIAL PROPERTIES), AND FOR
RESIDENTIAL AND NON-RESIDENTIAL PROPERTIES IN THE
MARINWOOD COMMUNITY SERVICES DISTRICT ($85.00 FOR
RESIDENTIAL AND $0.11 PER SQUARE FOOT FOR NON-RESIDENTIAL
PROPERTIES)
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 improved residential and non-residential properties within the City of San
Rafael; and
WHEREAS, the City, pursuant to three separate Joint Powers 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 living unit for residential properties and to
$0.14 per square foot of buildings on non-residential properties; and providing a corresponding
increase in the appropriations limit; 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 rate in the city limits of
the City of San Rafael and in County Service Area No. 13, and County Service Area No. 19, is
$92.00 per living unit for residential properties and $0.125 per square foot of buildings on non-
residential properties; and
WHEREAS, the current annual Paramedic Service Special Tax rate in the Marinwood
Community Services District is $85.00 per living unit for residential properties and $0.11 per
square foot of structures on non-residential properties; and
WHEREAS, the City Council, after reviewing the proposed budget recommendation of
the City Manager, finds that for the City of San Rafael, County Service Area No. 13 and County
Service Area No. 19, the annual Paramedic Service Special Tax rate for residential properties
should be adjusted to $95.00 per living unit, and the non-residential properties tax rate should
be adjusted to $0.132 per square foot of buildings; and that for Marinwood Community Services
District, the annual Paramedic Tax Rates for residential properties should remain at $85.00 per
living unit, and the non-residential tax rate should remain at $0.11 per square foot of buildings;
these rates will cover the cost of providing paramedic services within these service areas for
fiscal year 2018-2019; 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 setting of the
Page 2 of 3
annual Paramedic Service Special Tax rate within their respective jurisdictions, at $95.00 per
living unit for residential properties, and at $0.132 per square foot for buildings on non-
residential properties; 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 rate within its jurisdiction, at $85.00 per living unit for residential
properties, and at $0.11 per square foot for buildings on non-residential properties;
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 2018-2019, at $95.00 per year for each living unit, and $0.132 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 2018-2019,
at $95.00 per year for each living 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 2018-2019, at $85.00 per year for
each living unit, and at $0.11 per square foot for each non-residential structure.
Division 4. If any section, subsection, sentence, clause, or phrase of this ordinance
is for any reason held to be invalid, such holding or holdings shall not affect the validity of the
remaining portions of this ordinance and each section, subsection, sentence, clause and phrase
thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses,
or phrases be declared invalid.
Division 5. This Ordinance shall be published once in full before its final passage in
a newspaper of general circulation, published and circulated in the City of San Rafael, and shall
be in full force and effect thirty days after its final passage.
_______________________
GARY O. PHILLIPS, Mayor
Attest:
_______________________
Lindsay Lara, City Clerk
The foregoing Ordinance No. ____ was read and introduced at a Regular Meeting of the City
Council of the City of San Rafael, held on the 7th day of May, 2018, and ordered passed to print
by the following vote, to wit:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
Page 3 of 3
and will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of
the Council to be held on the 21st day of May, 2018.
_________________________
LINDSAY LARA, CITY CLERK
ATTACHMENT I
Preliminary
Actual Actual Actual Estimated Budget Projected Projected Projected
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022
Paramedic Tax (a)3,820,240$ 4,226,020$ 4,495,821$ 4,660,000$ 4,857,000$ 4,857,000$ 4,857,000$ 4,857,000$
Paramedic Tax: Prior Year Billings 989,816 156,000 83,000 81,000 76,000 37,000
Fire Dept.: 3rd Party Billing 2,341,127 2,319,676 1,506,437 2,691,000 2,550,000 2,550,000 2,550,000 2,550,000
Federal Grant - GEMT (b)77,055 275,772 121,517 148,000 130,000 130,000 130,000 130,000
Other Revenue 1,919 7,751 7,871 26,000 9,180 9,180 9,180 9,180
IGT-Intergovernmental Transfer - 270,335 220,842 233,000 187,000 187,000 187,000 187,000
Total Revenues 6,240,341$ 7,099,554$ 7,342,304$ 7,914,000$ 7,816,180$ 7,814,180$ 7,809,180$ 7,770,180$
Personnel Costs 5,060,775$ 5,469,474$ 5,825,873$ 6,000,000$ 5,981,000$ 6,220,000$ 6,469,000$ 6,728,000$
Supplies and Services 1,213,084 1,252,827 1,336,426 1,481,000 1,597,000 1,645,000 1,695,000 1,745,000
Capital Outlay - - - 225,000 - - - -
Total Expenditures 6,273,859$ 6,722,301$ 7,162,299$ 7,706,000$ 7,578,000$ 7,865,000$ 8,164,000$ 8,473,000$
Revenues Over/Under Expenditures (33,518)$ 377,253$ 180,005$ 208,000$ 238,180$ (50,820)$ (354,820)$ (702,820)$
Fund balance, beginning of year 1,220,794 1,187,276 1,564,529 944,534 770,600 1,008,780 957,960 603,140
Transfer to Measure E Essential Facilities (c) (800,000)$ (381,934)$ (d)
Fund balance, end of year 1,187,276$ 1,564,529$ 944,534$ 770,600$ 1,008,780$ 957,960$ 603,140$ (99,680)$
(a) FY 18-19 Paramedic Tax Assumes a Tax Increase in San Rafael and the CSA's from $92 to $95 per living unit and from $0.125 t0 $0.132 per sq. ft. non-residential
(b) GEMT - Ground Emergency Medical Transport
(c) City Council provided policy direction to allocate resources to the Essential Facilities Fund for the capital projects.
(d) Fund is to maintain a 10% operations reserve and the remainder is to be transferred to support capital improvements for the paramedic program. The transfer occurs annually
after year-end numbers are finalized.
Paramedic Tax Budget FY 18-19
For illustrative purposes - assumes no revenue
increase and 3-4% expense increase
ATTACHMENT II CITY OF SAN RAFAEL
PARAMEDIC SERVICE AREA ZONE B
HISTORY OF TAX RATES AND CAPS
Fiscal Residential Authorized Non-Residential Authorized
Year Tax Rate Cap Tax Rate Cap Explanations
2008-09 77.00$ 85.00$ 0.0960$ 0.1100$
2009-10 81.00$ 85.00$ 0.1030$ 0.1100$
2010-11 85.00$ 85.00$ 0.1100$ 0.1100$
2011-12 89.00$ 108.00$ 0.1200$ 0.1400$ Passage of Measure I
2012-13 89.00$ 108.00$ 0.1200$ 0.1400$
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$
2017-2018 adopted $ 92.00 $ 108.00 0.1250$ 0.1400$
2018-2019 proposed $ 95.00 $ 108.00 0.1320$ 0.1400$
CSA# 13, and CSA# 19
PARAMEDIC SERVICE AREA ZONE B
HISTORY OF TAX RATES AND CAPS
Fiscal Residential Authorized Non-Residential Authorized
Year Tax Rate Cap Tax Rate Cap Explanations
2008-09 77.00$ 85.00$ 0.0960$ 0.1100$
2009-10 81.00$ 85.00$ 0.1030$ 0.1100$
2010-11 85.00$ 85.00$ 0.1030$ 0.1100$
2011-12 85.00$ 85.00$ 0.1100$ 0.1100$
2012-13 89.00$ 95.00$ 0.1200$ 0.1320$ Passage of Measure E & F
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$
2017-2018 adopted 92.00$ 95.00$ 0.1250$ 0.1320$
2018-2019 proposed 95.00$ 95.00$ 0.1320$ 0.1320$
MARINWOOD (CSD)
PARAMEDIC SERVICE AREA ZONE B
HISTORY OF TAX RATES AND CAPS
Fiscal Residential Authorized Non-Residential Authorized
Year Tax Rate Cap Tax Rate Cap Explanations
2008-09 77.00$ 85.00$ 0.0960$ 0.1100$
2009-10 81.00$ 85.00$ 0.1030$ 0.1100$
2010-11 85.00$ 85.00$ 0.1100$ 0.1100$
2011-12 85.00$ 85.00$ 0.1100$ 0.1100$
2012-13 85.00$ 85.00$ 0.1100$ 0.1100$
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$
2017-2018 adopted 85.00$ 85.00$ 0.1100$ 0.1100$
2018-2019 proposed 85.00$ 85.00$ 0.1100$ 0.1100$
Fiscal Year Residential Non-Residential
2008-09 63.80%36.20%
2009-10 63.70%36.30%
2010-11 63.30%36.70%
2011-12 63.70%36.30%
2012-13 63.70%36.30%
2013-14 63.50%36.50%
2014-15 63.60%36.40%
2015-16 63.60%36.40%
2016-17 56.99%43.01%
2017-2018 adopted 53.97%46.03%
2018-2019 proposed 53.40%46.60%
Paramedic Tax Ratio