HomeMy WebLinkAboutFin Paramedic Tax FY2016-17CITY 01��Agenda Item No: 6.a
CITY OF
Meeting Date: May 2, 2016
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: FINANCE
Prepared by: Mark Moses
Finance Director
TOPIC: PARAMEDIC TAX FY 16-17
City Manager Approval: P�_
SUBJECT: CONSIDERATION TO ADOPT AN ORDINANCE TO ESTABLISH A TAX RATE
FOR FISCAL YEAR 2016-2017 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: Pass the Ordinance to Print Setting the Paramedic Tax Rates for
2016-2017 for Residential and Non -Residential Dwellings'
BACKGROUND: In 1979, the citizens of San Rafael approved a new tax for the sole purpose of
supporting a paramedic program. 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 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.
Adoption of the original ordinance in 1979 established Municipal Code Section 3.28. Included in
the Code, 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.
In 1988, the voters approved an extension of the tax to non-residential properties. This tax was
levied on a square footage basis, and was set at a $500 cap per each one -cent ($0.01) of tax
charged. A $0.05 tax rate cap was established as part of this vote.
When the City electorate first approved the paramedic program and related tax, language was
contained in the ballot measure that allowed the City Council, as the lead agency for this service,
to approve tax rates based upon cost of operating the paramedic program. Historically, staff would
determine the cost of the paramedic program, and take a recommendation to the Council that
established the rates for the coming year. Changes in tax law and voter authority modified how
this process has worked over the past two decades.
' The proposed Paramedic Tax Budget was reviewed by the Finance Committee at its Meeting of April 26, 2016.
FOR CITY CLERK ONLY
File No.: 9-12-1 x 9-3-31
Council Meeting: 05/02/2016
Disposition: Ordinance 1940 Passed to Print
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paee: 2
The passage of Proposition 218 by California voters in 1996 put severe limits on 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 voter
approval. Exceptions can be made where the cost of a service is tied to an inflationary index or
costing methodology, such as the City's business license tax (adjusted upward by CPI). When the
City's paramedic tax was established, no specific formula was defined in the Ordinance that meets
the criteria under Proposition 218. Thus no changes can be made to this special tax without a 2/3
voter approval.
In November 2006, the citizens of San Rafael passed Measure P 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. This vote was conducted in accordance with Proposition 218 requirements. The Council
passed Ordinance 1846 in November of 2006 to reflect the changes approved by the voters. All
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.
In November 2010, the citizens of San Rafael passed Measure I. This measure increased the
ceiling on the residential tax rate from $85.00 to $108.00 per living unit and on 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. The Council subsequently
passed Ordinance 1891 in December 2010 to reflect these changes.
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 non-residential tax rate from $0.11 to $0.132 per square foot for both
service areas. These ballot measures were conducted in accordance with Proposition 218 laws,
and subsequent legal precedents and clarifications. (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.)
Jurisdiction
Tax Ceiling
Tax Ceiling
Residential
Non -Residential
San Rafael
$108 per unit
$0.140 per sq ft.
CSA No. 13
$95 per unit
$0.132 per sq ft.
CSA No. 19
$95 per unit
$0.132 per sq ft.
Marinwood
$85 per unit
$0.110 per sq ft.
Current
Rates
$89 per unit / $0.12 per sq ft
$89 per unit / $0.12 per sq ft
$89 per unit / $0.12 per sq ft
$85 per unit / $0.11 per sq ft
The purpose of this report and the accompanying ordinance is to establish tax rates for fiscal year
2016-2017.
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 the
most recent business cost study. The sources of funds projected to cover the fiscal year
2016-2017 program costs of $7,138,243 are (in descending order) Paramedic Tax, Third Party
Billings for medical emergency response and Medi -Cal reimbursements. (See Exhibit 1)
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pa2e: 3
Based upon projected costs, revenues and service levels, the current tax rates will be sufficient to
cover the operating expenses of the paramedic program for the upcoming year. The paramedic
program has been able to operate effectively without raising rates in CSA No. 13 and CSA No. 19
since July 1, 2012, in the City of San Rafael since July 1, 2011, and in Marinwood CSD since
July 1, 2010. The Fire Department will review billing recovery and expenditure trends during the
first half of fiscal year 2016-2017, preliminarily assess the impact of maintaining service levels in
future fiscal years on future tax rates, and report back during the mid -year review.
Staff proposes to maintain the current respective residential rates of $85 to be levied in Marinwood
CSD, and $89.00 to be levied in the City and CSAs No. 13 and No. 19 (see Exhibit II). Total living
units for the City plus these three jurisdictions are 27, 401 based upon Marin County Auditor
Controller data. The residential sector contributes 57% of the total paramedic tax revenues (see
Exhibit II). Non-residential units will continue to be billed at $0.11 per square foot in Marinwood
CSD, and $0.12 per square foot in the City and CSAs No.13 and No.19 for all
commercial/industrial sites. Commercial/industrial customers comprise 43% of the total expected
tax revenue (see Exhibit II). Commercial Industrial customers increased by 7% due to an analysis
of the tax rolls completed in FY 15-16 that identified an additional 3,267,460 of commercial
building square footage. Total revenue from these taxes as well as third party billings and other
reimbursements and revenues is projected to generate $7,389,243.
Current
Source
Rates
San Rafael
$89/$0.12
CSA 13
$89/$0.12
CSA 19
$89/$0.12
Marinwood
$85/$0.11
Sub -total: Paramedic Tax
Third Party Billings
Medi -Cal
Reimbursements
Total Revenues
Proposed Projected
Rates
Revenues
$89/$0.12
$ 3,831,807
$89/$0.12
$ 52,841
$89/$0.12
$ 226,322
$85/$0.11
$ 155,454
$ 4,416,424
$ 2,600,000
$ 372,819
$ 7,389,243
Staff recommends that the portion of fund balance not required to support unexpected revenue or
expenditure variances be set aside to support capital improvements to facilities upon which the
paramedic program depends for the delivery of its services. Policy guidelines governing the
accumulation and use of such funds will be recommended to the Finance Committee, prior to the
disposition of these funds.
All of the service areas have been provided with the proposed paramedic budget for fiscal year
2016-2017, and concur with the recommendation to continue at the current tax rates.
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 Paramedic 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 2016-2017 are projected to be $7,138,379.
Total resources (including fund balance and projected revenues) exceed this amount.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paee: 4
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.
RECOMMENDATION:
Staff recommends that City Council accept the report and pass the Ordinance to print.
ORDINANCE NO. 1940
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL CONTINUING THE PARAMEDIC TAX RATES, COMMENCING
WITH FISCAL YEAR 2016-2017, AT THE RATES ESTABLISHED IN
ORDINANCE NO. 1911 FOR RESIDENTIAL AND NON-RESIDENTIAL
PROPERTIES IN THE CITY OF SAN RAFAEL COUNTY SERVICE AREA
NO. 13, AND COUNTY SERVICE AREA NO. 19. ($89.00 FOR
RESIDENTIAL AND $0.12 PER SQUARE FOOT FOR NON-RESIDENTAL
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 NOW
RESIDENTIAL PROPERTIES)
WHEREAS, the electors of the City of San Rafael in 1979 and in 1988, adopted a
paramedic service tax (Chapter 3.28 of the San Rafael Municipal Code) to be imposed
annually upon all residential and commercial 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 Services
Area No. 13, and County Services Area No. 19; and
WHEREAS, the electors of the City of San Rafael approved Measure "I" on
November 2, 2010, increasing the ceiling on the residential tax rate to $108.00 per living
unit and on non-residential property to $0.14 per square foot; and providing a
corresponding increase in the appropriations limit; and
WHEREAS, the City Council, pursuant to its authority under the paramedic tax
ordinance, and based upon a budget recommendation by the City Manager, adopted
Ordinance No. 1891 to reflect the changes approved by the voters; and
WHEREAS, increases in the maximum rates for the Paramedic Service Tax 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 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 Paramedic Tax Rates for residential living units should
remain at $89.00 and the non-residential properties tax rate should remain at $0.12 per
square foot; and that for Marinwood Community Services District, the Paramedic Tax Rates
for residential living units should remain at $85.00 per year, and the non-residential tax rate
should remain at $0.11 per square foot; since these rates will cover the cost of providing
paramedic services within these service areas for fiscal year 2016-2017; 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 Paramedic Tax Rate within their respective jurisdictions, at $89.00 per year
for each living unit, and at $0.12 per square foot for each non-residential structure; and
WHEREAS, Marinwood Community Services District, based upon budgets
recommended to them, have advised the City that they approved of the continuing of the
Page 1 of 3
Paramedic Tax Rate within its jurisdiction, at $85.00 per year for each living unit, and at
$0.11 per square foot for each non-residential structure.
NOW THEREFORE, the City Council of the City of San Rafael does ordain as follows:
Division 1. Pursuant to Chapter 3.28, Section 3.28.060 thereof, the Council of
the City of San Rafael hereby sets the tax rate for paramedic services within City limits
commencing in fiscal year 2016-2017, at $89.00 per year for each living unit, and $0.12 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 2016-
2017, at $89.00 per year for each living unit, and $0.12 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 2016-2017, 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.
Pi (Ai�fi
'Kate 6olin, Vice -Mayor
Attest:
,_'4 Z X_- . &'g,.A -
Esther C. Beirne, City Clerk
The foregoing Ordinance No. 1940 was read and introduced at a Regular Meeting of the
City Council of the City of San Rafael, held on the 2nd day of May, 2016, and ordered
passed to print by the following vote, to wit:
AYES: Councilmembers: Bushey, Gamblin, McCullough & Vice -Mayor Colin
NOES: Councilmembers: None
ABSENT: Councilmembers: Mayor Phillips
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 16th day of May, 2016.
Page 2 of 3
ESTHER C. BEIRNE, CITY CLERK
Page 3 of 3
Exhibit I
Paramedic Tax
Fire Dept.: 3rd Party Billing
BLS Program: 3rd Party Billing
GEMT **
IGT***
Other Revenue
Total Revenues
Personnel Costs - Paramedic Staff
Supplies and Services
BLS Program
Capital Outlay
Total Expenditures
Revenues Over/Under Expenditures
Fund balance, beginning of year/restate
Fund balance, end of year
Paramedic Tax Budget FY 16-17
3,489,494 $
2,187,789 $
2,788 $
5,680,071 $
5,032,036 $
796,075 $
5,828,111 $
(148,040) $
548,946 $
400,907 $
3,661,064 $
1,661,227 $
126 $
5,322,417 $
4,754,315 $
822,468 $
5,576,782 $
(254,365) $
400,907 $
146,542 $
3,807,545 $
2,655,739 $
125,107 $
1,134 $
6,589,525 $
5,072,665 $
915,090 $
171,282 $
19,754 $
6,178,791 $
410,734 $
146,542 $
557,276 $
3,804,985 $
2,322,937 $
61,577
118 $
6,189,617 $
4,746,911 $
1,102,311 $
138,445
14,478
6,002,145 $
187,472 $
557,276 $
744,748 $
3,816,070 $
2,426,744 $
344,510 $
1,145 $
6,588,469 $
4,855,930 $
1,111,318 $
5,967,248 $
621,221 $
599,574 $
1,220,794 $
3,820,240 $
2,341,127 $
77,055 $
1,919
6,240,341 $
5,060,775 $
1,213,084 $
6,273,859 $
(33,518) $
1,220,794 $
1,187,276 $
4,214,806 $
2,525,000 $
(13,157) $
271,085 $
6,997,734 $
5,505,342 $
1,199,831 $
6,705,173 $
292,561 $
1,187,276 $
1,479,837 $
*The City adjusted its beginning fund balances for FY13-14 to bring the City's financial reporting methodology fully in line with the principles of modified accrual accounting .
The adjustment consists of the full recognition of payroll -related expenses in the year incurred. The impact for paramedic fund is $145,173.
**GEMT - Ground Emergency Medical Transport- MediCAL Reimbursement Program
***IGT- Intergovernmental Transfer- MediCAL Reimbursement Program
4,416,424
2,600,000
125,000
247,819
7,389,243
5,799,915
1,338,464
7,138,379
250,864
1,479,837
1,730,701
CITY OF SAN RAFAEL
PARAMEDIC SERVICE AREA ZONE B
HISTORY OF TAX RATES AND CAPS
EXHIBIT II
Fiscal
Residential
Authorized
Non -Residential
Authorized
Year
Tax Rate
Cap
Tax Rate
Cap Explanations
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 1
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
2015-2016 adopted
$
89.00
$
108.00
$
0.1200
$
0.1400
2016-2017 proposed
$
89.00
$
108.00
$
0.1200
$
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
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
2015-2016 adopted
$
89.00
$
108.00
$
0.1200
$
0.1400
2016-2017 proposed
$
89.00
$
108.00
$
0.1200
$
0.1400
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
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
2015-2016 adopted
$
89.00
$ 108.00
$
0.1200
$
0.1400
2016-2017 proposed
$
89.00
$ 108.00
$
0.1200
$
0.1400
Paramedic
Tax Ratio
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%
2015-2016 adopted
63.60%
36.40%
Increase in Non Residential as
2016-2017 proposed
56.99%
43.01%
a result of Audit
\\fs1\udrives$\daniellef\Desktop\2017 PM
Tax
Budget\paramedic
tax rate & ratio history
16-17tax rate & tax ratio
4/25/201612:00 PM
Marin Independent Journal
4000 Civic Center Drive, Suite 301
San Rafael, CA 94903
415-382-7335
legals@marinij.com
2070419
CITY OF SAN RAFAEL
CITY OF SAN RAFAEL
CITY CLERK, ROOM 209
1400 FIFTH AVENUE, SAN RAFAEL, CA 94901
SAN RAFAEL, CA 94915-1560
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA
County of Marin
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:
04/22/2016
I certify (or declare) under the penalty of perjury that the
foregoing is true and correct.
Dated this 22th day of April, 2016.
Signature
PROOF OF PUBLICATION
r_BP6-12,'01/15
Legal No. 0005716586
CITY OF SAN RAFAEL
NOTICE OF PUBLIC HEARING
The City Council of the City of San Rafael will
hold a public hearing:
PURPOSE: Public Hearing: To consider setting
the voter approved paramedic services special
tax in the City of San Rafael, CSA 13, CSA 19
and Marinwood CSD, and adoption of an
ordinance establishing tax rates for fiscal year
2016/2017 for both residential and non-
residential properties.
DATE/TIME/PLACE: Monday, May 2, 2016
at 7:00 PM
City Council Chambers, City Hall,
1400 Fifth Avenue,
San Rafael
WHAT WILL HAPPEN: You may comment on
the proposed Ordinance. The City Council will
consider all public testimony and will then
decide whether to adopt the Ordinance.
IF YOU CANNOT ATTEND: You may send a
letter to Esther Beirne, City Clerk, City of San
Rafael, P.O. Box 151560, San Rafael, CA 94915-
1560. You may also hand deliver a letter prior
to the meeting.
FOR MORE INFORMATION: You may contact
Mark Moses, Finance Director (415) 458-5018.
Office hours are Monday through Friday, 8:30
a.m. to 5:00 p.m.
SAN RAFAEL CITY COUNCIL
/s/ Esther Beirne
ESTHER BEIRNE City Clerk
NO. 467 April 22, 2016.
L/FUR'`
ROUTING SLIP / APPROVAL FORM
INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval
by the City Council. Save staff report (including this cover sheet) along
with all related attachments in the Team Drive (T:) 4 CITY COUNCIL
AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS --> [DEPT -
AGENDA TOPIC]
Agenda Item # (D -G,.
Date of Meeting: 5/2/2016
From: Danielle Ferrigno
Department: Finance
Date: 4/22/2016
Topic: Paramedic Tax FY 16-17
Subject: CONSIDERATION TO ADOPT AN ORDINANCE TO ESTABLISH A TAX RATE
FOR FISCAL YEAR 2016-2017 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
Type: ❑ Resolution ® Ordinance
❑ Professional Services Agreement ❑ Other:
APPROVALS
® Finance Director
Remarks: MM - Approved once final attachement is updated
® City Attorney
Remarks: ETD Approved 4/22116
® Author, review and accept City Attorney / Finance changes
Remarks: DF -Approved 4/26/16
® City Manager
Remarks:
FOR CITY CLERK ONLY
File No.:
Council Meeting:
Disposition:
