HomeMy WebLinkAboutFin Paramedic Tax FY2008-09CITY OF
Agenda Item No: 13
Meeting Date: July 7, 2008
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: MANAGEMENT SERVICES
Prepared by: Cindy Mosser, City Manager Approval:,
Finance Director
SUBJECT: CONSIDERATION TO ADOPT AN ORDINANCE TO ESTABLISH A TAX RATE
FOR FISCAL YEAR 2008-2009 FOR PARAMEDIC SERVICES FOR BOTH
RESIDENTIAL AND NON-RESIDENTIAL PROPERTIES IN THE CITY OF SAN
RAFAEL, CSA19, CSA13 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 2008-2009 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, County Service Area #19
and County Service Area #13 (Upper Lucas Valley).
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.
Adoption of the original ordinance in 1979 established Municipal Code Section 3.28. Included
in the Code under Section 3.28.060 the Council has the authority to set the tax rates based
upon a budget recommendation by the City Manager.
The purpose of this report is to establish tax rates for fiscal year 2008-2009. An ordinance has
been prepared which provides the necessary information to establish said tax rates.
ANALYSIS:
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,
FOR CITY CLERK ONLY
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SAN RAFAEL CITY COUNCIL AGENDA REPORT / PaLe: 2
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
have modified how this process has worked over the last few years.
The passage of Proposition 218 by California voters in 1996 put severe limits on local
government being able to implement new or raise existing taxes, assessments and other
property related fees. In summary, no tax can be increased under Proposition 218 without a
vote of the people. 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 put into place, no specific formula was
defined in the Ordinance that meets the criteria under Proposition 218. Based upon review
from City legal staff, no change could be made to the San Rafael residential portion of this tax
without a 2/3 majority approval.
In November of 2002, the citizens of San Rafael passed a measure that provided for a ceiling
on the residential tax rate of $61.00 and a non-residential rate ceiling of $0.08 per square foot.
The City had reached the ceiling in fiscal year 2004-2005.
In November of 2006, the citizens of San Rafael passed Measure P. This new measure
increases the ceiling on the residential tax rate to $85.00 per living unit and on non-residential
property to $0.11 per square foot. This vote was done in accordance with Proposition 218 laws,
and also provided under Proposition IV a corresponding increase in the appropriations limit
(GANN calculation). The Council passed Ordinance 1846 in November of 2006 to reflect the
changes approved by the voters in both the tax rates and GANN limit calculation. All
commercial and industrial sites are levied based upon Assessor square footage records for
building size.
As far as the other service areas are concerned, they have 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 $.11 cents per square foot for non-residential.
Similarly, Marinwood CSD approved Measure M for the same tax ceilings.
Taxes have traditionally been recommended in whole dollar increments. Rates are based upon
recovering the cost of service. For 2008-2009, the cost of running the paramedic program is
$4,894,486. This sum will be a part of the overall City budget adoption on July 7, 2008. The
program costs remains relatively constant with approximately $21,000 increase from the 2007-
2008 fiscal year. There are no significant changes in the paramedic operation from fiscal year
2007-2008. Although supplies and services increased approximately 5.8 percent, changes in
personnel created a personnel cost decrease of approximately 1 percent. Personnel costs are
approximately 88 percent of the total paramedic program budget.
Staff proposes to raise the residential rate to $77.00 to be levied in the City as well as the three
other jurisdictions. Total living units for the City plus these three jurisdictions are 27,417 based
upon Marin County Auditor Controller data. The residential sector makes up about 63.8% of
the total paramedic tax resources.
Also, non-residential units will be billed at $.0960 cents per square foot for all
commercial/industrial sites served by the Paramedic program. Commercial/industrial
customers comprise 36.2% of the total expected tax revenue.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
The attached Exhibits illustrate the history of taxes and billing revenues collected and projected
for the Paramedic Services. Based upon adopted costs, the rates recommended are sufficient
to cover the operating expenses of the paramedic program for fiscal year 2008-2009. No
General Fund subsidy is required to sustain this program at the current service level.
The expense budget for the 2008-2009 paramedic program is $4,894,486. Costing of this
program has been done in a manner consistent with the business cost study. Two sources of
funds are expected to cover these costs. Paramedic tax for all service jurisdictions is estimated
at $3,310,000, or 68 percent of program costs. Third Party billings are forecasted at
$1,750,000.
FISCAL IMPACT:
The budget as presented reflects the voter approved tax rate limits for the non-residential
(commercial and industrial) and residential supported ratepayers. If either recommendation is
not approved, or ratified at a lesser rate than those proposed, it would mean additional
subsidies from the General Fund in an amount equal to the shortfall of special paramedic taxes.
The Ordinance attached sets residential and non-residential paramedic tax rates.
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Staff recommends Council accept the report and adopt the ordinance as presented.
ATTACHMENTS
W:\Management Services- WorkFile\Finance- WorkFile\Council Material\Staff Reports\2008\City\Paramedic tax report 08-09.doc
ORDINANCE NO. 1867
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL SETTING THE PARAMEDIC TAX RATE, COMMENCING
WITH FISCAL YEAR 2008-2009, AT THE RATES ALLOWED IN
ORDINANCE NO. 1846 FOR RESIDENTIAL AND NOW
RESIDENTIAL PROPERTIES IN THE CITY OF SAN RAFAEL; AND
FURTHER CONFIRMING THE PARAMEDIC TAX RATES,
COMMENCING WITH FISCAL YEAR 2008-2009 FOR
RESIDENTIAL AND NON-RESIDENTIAL PROPERTIES IN THE
CITY OF SAN RAFAEL, THE MARINWOOD COMMUNITY
SERVICES DISTRICT, COUNTY SERVICE AREA NO, 13, AND
COUNTY SERVICE AREA NO. 19. ($77.00 FOR RESIDENTIAL
AND $.0960 PER SQUARE FOOT FOR NON-RESIDENTIAL
PROPERTY)
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 electors of the City of San Rafael approved Measure "P" on
November 7, 2006, increasing the ceiling on the residential tax rate to $85.00 per
living unit and on non-residential property to $0.11 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. 1846 to reflect the changes approved by the voters; and
WHEREAS, the City Council, after reviewing the proposed budget
recommendation of the City Manager, finds that the Paramedic Tax Rates for
residential should be increased from $75.00 to $77.00 and non-residential
properties tax rate should be increased from $.0945 to $.0960 per square foot for
fiscal year 2008-2009, since these rates will cover the cost of providing paramedic
services within the City; 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
Page 1 of 3
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 by the electors of Marinwood
Community Services District by an election held in November 2006; and
WHEREAS, County Service Area No. 13, County Service Area No. 19, and
Marinwood Community Services District, 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 $77.00 per year for each living unit,
and at $.0960 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 does hereby set the tax rate for paramedic
services within City limits commencing in fiscal year 2008-2009, at $77.00 per year
per living unit, and at $.0960 per square foot on non-residential properties.
Division 2. The City Council hereby confirms that the Paramedic Tax
Rates set for County Service Area No. 13, County Service Area No. 19, and
Marinwood Community Services District, commencing with fiscal year 2008-2009,
shall be at $77.00 per year for each living unit, and at $.0960 per square foot for
each non-residential structure.
Division 3. 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 4. 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.
Attest:
Esther C. Beirne, City Clerk
Page 2 of 3
pr
ert oro, Ma or
The foregoing Ordinance No. 1867 was read and introduced at a Regular Meeting
of the City Council of the City of San Rafael, held on the 7th day of July, 2008, and
ordered passed to print by the following vote, to wit:
AYES: Councilmembers: Brockbank, Connolly, Heller, Miller & Mayor Boro
NOES: Councilmembers: None
ABSENT: Councilmembers: None
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 July, 2008.
ESTHER C. BEIRNE, CITY CLERK
WAManagement Services- WorkFile\Finance- WorkFile\Council Material\Ordinances\2008\Paramedic Tax Ord 08-09.doc
Page 3 of 3
CITY OF SAN RAFAEL EXHIBIT I
PARAMEDIC SERVICE AREA ZONE B
HISTORY OF TAX AND OTHER REVENUES
Fiscal
Paramedic
Third Party
total
%
Year
Taxes
Billing
Explanations
$
increase
1988-89
807,306
807,306
1989-90
852,878
852,878
5.64%
1990-91
848,008
848,008
-0.57%
1991-92
989,149
989,149
16.64%
1992-93
1,009,372
1,009,372
2.04%
1993-94
1,001,082
1,001,082
-0.82%
1994-95
1,200,000
414,319
First year for 3rd party billing
1,614,319
61.26%
1995-96
1,283,000
617,543
1,900,543
17.73%
1996-97
1,391,000
688,233
2,079,233
9.40%
1997-98
1,420,393
1,003,367
2,423,760
16.57%
1998-99
1,571,855
1,007,088
2,578,943
6.40%
1999-00
1,584,638
1,169,600
2,754,238
6.80%
2000-01
1,938,568
1,561,220
San Rafael 1996 Commercial tax
3,499,788
27.07%
cap gone
2001-02
1,976,973
1,661,432
3,638,405
3.96%
2002-03
2,038,900
1,421,583
3,460,483
-4.89%
2003-04
2,332,935
1,217,697
3,550,632
2.61%
2004-05
2,519,056
1,428,531
First year for BLS Transportation
3,947,587
11.18%
2005-06*
2,668,491
1,485,750
hit tax caps
4,154,241
5.23%
2006-07*
2,671,595
1,474,240
Medicare impacts 3rd party billing
4,145,834
-0.20%
2007-08 revised budget
3,235,000
1,675,000
Measure P - new cap
4,910,000
18.43%
2008-09 proposed budget
3,310,000
1,750,000
5,060,000
3.05%
*General Fund subsidized the Paramedic Fund for FY2005-06 and FY2006-07 in the amount of $180,500
and $448,500, respectively.
7/2/2008
12:56 PM Page 1 paramedic tax history.xls
CITY OF SAN RAFAEL EXHIBIT II
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
1988-89
$
23.10
$
25.00
$
0.0200
$
0.0500
first year of non-residential
1989-90
$
25.00
$
25.00
$
0.0220
$
0.0500
1990-91
$
25.00
$
25.00
$
0.0220
$
0.0500
1991-92
$
28.00
$
35.00
$
0.0250
$
0.0500
1992-93
$
28.40
$
35.00
$
0.0254
$
0.0500
1993-94
$
28.40
$
35.00
$
0.0254
$
0.0500
1994-95
$
34.10
$
35.00
$
0.0305
$
0.0500
second paramedic unit - TL
1995-96
$
37.00
$
45.00
$
0.0331
$
0.0500
1996-97
$
40.00
$
45.00
$
0.0357
$
0.0500
third paramedic unit
1997-98
$
40.00
$
45.00
$
0.0357
$
0.0500
1998-99
$
44.00
$
45.00
$
0.0500
$
0.0500
fourth paramedic unit
1999-00
$
46.00
$
53.00
$
0.0530
$
0.0700
2000-01
$
49.00
$
53.00
$
0.0600
$
0.0700
2001-02
$
50.00
$
53.00
$
0.0610
$
0.0700
2002-03
$
52.00
$
53.00
$
0.0625
$
0.0700
2003-04
$
54.00
$
61.00
$
0.0675
$
0.0800
2004-05
$
59.00
$
61.00
$
0.0740
$
0.0800
fourth paramedic unit ended
2005-06
$
61.00
$
61.00
$
0.0800
$
0.0800
2006-07
$
61.00
$
61.00
$
0.0800
$
0.0800
2007-08
$
75.00
$
85.00
$
0.0945
$
0.1100
Passage of Measure P
2008-09
$
77.00
$
85.00
$
0.0960
$
0.1100
7/2/2008
12:56 PM Page 1 paramedic tax history.xls
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 19, CSA 13 and Marinwood CSD, and adoption of an
ordinance establishing tax rates for fiscal year 2008/2009
for both residential and non-residential properties.
DATE/TIME/PLACE: Monday, July 7, 2008 at 8:00 PM
City Council Chamber, 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 approve the Ordinance amendment.
IF YOU CANNOT ATTEND: You may send a letter to Esther C. 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 Cindy Mosser, Finance Director
(415) 458-5018. Office hours are Monday through
Friday, 8:30 a.m. to 5:00 p.m.
SAN RAFAEL CITY COUNCIL
ESTHER C. BEIRNE, City Clerk
(Please publish in the Marin Independent Journal on Friday, June 27, 2008 and Thursday, July 3,
2008)
CITY OF SAN RAFAEL
ROUTING SLIP / APPROVAL FORM
INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT,
ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY.
SRRA / SRCC AGENDA ITEM NO.
DATE OF MEETING: July 7, 2008
FROM: Cindy Mosser
DEPARTMENT: Finance
DATE: July 2, 2008
TITLE OF DOCUMENT: Consideration to Adopt an Ordinance to Establish a Tax Rate for Fiscal Year
2008-2009 for Paramedic Services for Both Residential and Non -Residential
Properties in the City of San Rafael, CSA 19, CSA 13 and Marinwood CSD as
Provided for in the Voter Approved Paramedic Services Special Tax.
r
De ment Head (signature) C ITY ATTO
*** *** *** *** *** *** *** *** *** *** *** *** *** *** *** ***
(LOWER HALF OF FORM FOR APPROVALS ONLY)
APPROVED AS COUNCIL/ AGENCY APPROVED AS TO FORM:
AGEEND ITEM:
Ci y anager (signature) City Attorney (signature
NOT APPROVED
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