No preview available
HomeMy WebLinkAboutFin Paramedic Tax FY2009-10Agenda item No: 16 Meeting Date: July 6, 2009 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: MANAGEMENT SERVICES Prepared by: Cindy Mosser, City Manager Approval: Ji4ry Finance Director SUBJECT: CONSIDERATION TO ADOPT AN ORDINANCE TO ESTABLISH A TAX RATE FOR FISCAL YEAR 2009-2010 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 2009-2010 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). 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. 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 have modified how this process has worked over the last few years. FOR CITY CLERK ONLY File No.: �l� - q, 3 %3 mss` Council Meeting: Int -'ID 4 Disposition: __ C)ZdiwatiLz 44 1�7 :4S SAN RAFAEL CITY CG _10L AGENDA REPORT / Paye: 2 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. The purpose of this report is to establish tax rates for fiscal year 2009-2010. An ordinance has been prepared which provides the necessary information to establish said tax rates. ANALYSIS: 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 2009-2010, the cost of running the paramedic program is $5,334,320. This sum will be a part of the overall City budget adoption on July 6, 2009. In fiscal year 2008-2009, the Fire Department initiated several enhancements to the service delivery. ➢ In March 2009, the City started contracting with the Marin County Sheriff's Communication Center for dispatch services, which provides a $194,000 savings to fiscal year 2009-2010 paramedic budget. ➢ Another initiative is to have Paramedic Assessment Engines at all San Rafael Stations. All of these engines are equipped with gear necessary to allow a paramedic on board to initiate paramedic level life-saving skills prior to the arrival of an ambulance. To achieve this initiative, the Fire Department is hiring only firefighter/paramedics for vacancies with a long-term goal of maintaining 30 dual certified individuals (firefighter/paramedics). ➢ The Department established an EMS coordinator position to handle the oversight of training and service delivery. This position will be filled in fiscal year 2009-2010. SAN RAFAEL CITY CG _ 1CIL AGENDA REPORT /Page: 3 Staff proposes to raise the residential rate to $81.00 to be levied in the City as well as the three other jurisdictions. Total living units for the City plus these three jurisdictions are 27,429 based upon Marin County Auditor Controller data. The residential sector makes up about 63.6% of the total paramedic tax resources. Also, non-residential units will be billed at $.1030 cents per square foot for all commercial/industrial sites served by the Paramedic program. Commercial/industrial customers comprise 36.4% of the total expected tax revenue. The attached report illustrates the history of taxes and billing revenues collected and projected for the Paramedic Services. This report was shared with members of the County, Marinwood and Community Services Areas on June 29, 2009. Based upon adopted costs, the rates recommended are sufficient to cover the operating expenses of the paramedic program for fiscal year 2009-2010. No General Fund subsidy is required to sustain this program at the current service level. The expense budget for the 2009-2010 paramedic program is $5,334,320. 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 $3,491,000, or 65 percent of program costs. Third Party billings are forecasted at $1,900,000. 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. ACTION REQUIRED: Staff recommends Council accept the report and adopt the ordinance as presented. ATTACHMENTS WAManagement Services- WorkFile\Finance- WorkFile\Council Material\Staff Reports\2009\City\Paramedic tax report 09-10.doc 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 3,224,610 1,676,412 Measure P - new cap 4,901,022 18.22% 2008-09 revised budget 3,310,000 1,900,000 5,210,000 6.30% 2009-10 proposed budget 3,491,000 1,900,000 5,391,000 3.47% *General Fund subsidized the Paramedic Fund for FY2005-06 and FY2006-07 in the amount of $180,500 and $448,500, respectively. 6/29/2009 11:04 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 2009-10 $ 81.00 $ 85.00 $ 0.1030 $ 0.1100 6/29/2009 11:04 PM Page 2 paramedic tax history.xls m X W OO O O O O O O 00 O O LO ti ' CN7 O Cf) P. �7 In C}• O O O li to I- m O I- C() r to I-- ch m N N � LO r r N (fi 69 Ef} 69 69 69 (fT 69 V9 O CO O (O 0 0 0 CO 0 0 rn� O ' NT O� cr cr L6 q;i (5 CA Cn C) O1- O OOOO C7 LC) 00 CA r C ) r V- d' N 69 69 69 69 6% CA 6% 69 w r to O Co O O (O N CA O r O O -T- o N LO ' o U) O Cn CA 1- N 1- 1- m O r LO Cn r I- co m co Lf) m CO • O 't Ilq- 1 r r IN ER 69 69 69169 I 69 (A I (fl m W Z O N o J � r W O LQLW� 9O 0 N M Z m W 0 a NQ 0 IL W >- N N O}J U) Eu F- V VVN a) x (D N IL E a cu `) Z cu" a N N S2 ` aa) "' c o V N O a) m > O N o 2 a� U) U)>, N a x — o - a 00 c () w m a �cn0 C: iy 'c °gym n- E Z 0 N a a E c � E in— O CO r o N* CD I N N N r 0 U) U) U U :L. 0 0 c t� O o a. c c cu 0 M `m O O r co M 69 O N N O M 69 M 'V• (C LO Cn M 69 N O U 0 C O V- 0 CL Q U) U v 0 0 3 c a O %- Q O co V. co r 69 &9 O 7 O C ti 1- N to ({} O M O r (D 1- M x m E O 7 cn c X .0 O m i 7 0) a O E U U cu U N m U a N E (0 N CL ^v. rn O� N a - CD 'V N LO C.0 ti 2 m W Z O N O W q O N LL C9 C1 O O a N N p W OBJ v tL LL O H N O u W H LL O 0 0 0 C Nr DO ti r O (s7 N v O N N O OT to OD O � O O � N o O 00 0 p O O O C:)O C N CO (n �Li ' I ` O U C 06 = U .V m C N C N I U U-0 O D L t (-`0 F I O O� E E= N V (n c (`o N N Q N m U N CD fo 1 0 v W W w �- d} d C:) r O ' > > > c -0 -0 co m u m m r- c U U U C_ C C_ r: EF} d O c r c � c a c � d} d (D u � U -0 -0 -0 comm U U U N C C C Ef? d o O 00 0 p O O O C:)O C N CO oD N O tt-- " ( cu� CD> (n U C L I ` O N ( m a C 06 = U .V m C N C N I U U-0 O D N L O (-`0 F I O O� E E= N V cu U) (`o N N Q N m U N CD fo 1 0 mm 00 W W w �- 'Iui X o � rn06 C) cn .� U U m N O O N� i U O O Q) E m m O_ It N m m a- m O N d m NT N LO C.0 m X W m W z O N O LLI o N LUL U' CA 0 CD a N Q LU LL W >- 0 O Q U v IL LL O F - co O U N O T a) O CA O Q� N N O tm 00 N t] N co �p O N O N I- 9 7 U O fD O N O O O O O O O O O O O O O O O O O O O O O O O O O O O 14- 10- T V- M C) 14- 0 0 T LO M O O O U') O O O O O O O O O I- CO O CO O V) N M N CO CO I- LO Ln O I-- CO r LO LCA O O O CO N T LO O CO T N O N M" T CN M C) I- CO 1- 00 (D �-t O T M r M CO I- M T LO T N r T r r O T T CD CD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CO 0 0 0 0 O LD � ti T� 0 01-4- 0 CD CD M M O O D LO O O O O O O O LO i- d' CO M O LD N M N O M I- O LO O I- O O LIQ LO CD CD' � CO O O N O N MI -i T N 0 0 PI M Il 00 O W Ni T(D T CO M Il- M T L) T N r Il- CD N O O LO M M T N O T O I, - M w O O N '�t O O M T LO CO T M N M T t O M T N Tq- N M CO LO M qr � CA M CO CO ' LO T 0 r M.t 0 O4- 0 Iq T �' ' M T T O' N O 00 O CA CD �z M CM N M 00 O 00 M O C5 00 M r CA T N CO M r CM T N O N T T T O M T N O I� lt) 'd• 1� O O O O M M O CA T f� L(� CA OIl- NNOo (D(MOLAMCDIl- NTMONLOMON T CD M CO N ' 0 LO W O CO LO M M ti T T I` "T M V- N CST LdC d P-(ONOON I�i(MOC)NMOD(D N N N O T r T O I -,;1' -'- to to I co 0o n r CO N I'm o M I CD co N O CO I- cn I'mw coLO C Ln M m X N O o T U i O CA U CD M a U O a) N U .D a) E N N O_ TV, O C) N a- 0) 0) O N LO CD ti aD rn (1) L U � m cis L o U O N o U C� (1) U (1) -0.2 2 U Z�IN LU '2 O N to O O c>sf° S CO .� . ns U m - ow- O_ U gymN Q �cn O Ln rnr•- CU m Lvo_ U U M n a) O" r Mc C N C V U\ U) U C N C ; a) v 0 tm L) N O E a) a U- •° � m U a E �°cn v o O m cu E CL 0 O O_ a Q CU m L6 fl N .Q �' O CU F- 'cu � (Sf U p E. o06of �° m c o c m N� a) CL :3 a�a�vw a) n. c N �= rnmUCL Ln •c tYU mom E v, a� o `m 0 a) c Ln _ oo�o(�o���2a�mL0 Q o m E Q a) U)`B(co�o E ca M �O��m�CL IZ >> m o a_ m O _, U LL. It O U Q W Lu -i> CL U cn o I— m X N O o T U i O CA U CD M a U O a) N U .D a) E N N O_ TV, O C) N a- 0) 0) O N LO CD ti