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HomeMy WebLinkAboutFin Paramedic Tax FY2013-14crryol.,�Aott Agenda Item No: 5.a Meeting Date: May 20, 2013 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: FINANCE Prepared by: Mark Moses Interim Finance Director City Manager Approva °( SUBJECT: CONSIDERATION TO ADOPT AN ORDINANCE TO ESTABLISH A TAX RATE FOR FISCAL YEAR 2013-2014 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 2013-2014 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 have modified how this process has worked over the last several years. FOR CITY CLERK ONLY File No.: 9 -/ Z - i �r q .3 31 Council Meeting: 5/.2,. : �, /.20/ 3 Disposition: &0edlKu Huz Tel- 1,3t( of To/gP1gL- SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 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 Residential Tax Ceiling Non -Residential Current Rates San Rafael $108 per unit $0.140 per sq ft. $89 per unit / $0.12 per sq ft CSA 13 $95 per unit $0.132 per sq ft. $89 per unit / $0.12 per sq ft CSA 19 $95 per unit $0.132 per sq ft. $89 per unit / $0.12 per sq ft Marinwood $85 per unit $0.110 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 2013-2014. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 ANALYSIS: Rates are based upon recovering the cost of service. For 2013-2014, the cost of running the paramedic program is currently projected at $6,174,377 (see Exhibit 1). Based upon projected costs and service levels, the current rates will be sufficient to cover the operating expenses of the paramedic program for the upcoming year. 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 27,213 based upon Marin County Auditor Controller data. The residential sector makes up about 64% of the total paramedic tax resources (see Exhibit II). Also, 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 36% of the total expected tax revenue (see Exhibit 11). Total revenue expected from these taxes as well as third party billings is projected at $6,226,994 (see Exhibit 1). Costing of these program expenditures 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 $3,801,794, or 62 percent of program costs. Third Party billings are forecasted at $2,425,000 (see Exhibit 1). Jurisdiction Current Rates Proposed Rates Projected Revenues San Rafael $89/$0.12 $89/$0.12 $3,369,923 CSA 13 $89/$0.12 $89/$0.12 $ 52,841 CSA 19 $89/$0.12 $89/$0.12 $ 227,390 Marinwood $85/$0.11 $85/$0.11 $ 151,640 All of the service areas have been provided with the proposed paramedic budget for fiscal year 2013-2014, 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. The paramedic services are accounted for in the Paramedic Special Revenue Fund. This fund operates self -sufficiently with revenues from paramedic taxes and third party medical billings. The total expenditures for fiscal year 2013-2014 are projected to be $6,174,377. Total resources (including fund balance and projected revenues) exceed this amount. 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. ACTION REQUIRED: Staff recommends that City Council accept the report and adopt the ordinance as presented. ATTACHMENTS m 2 x LU r O m N W <h Z o ON N = LUJ < LLI O 0 � Z m ti t/) c O LL W N CO 0 � O ~ V N Fa ZW OJ L) a U N � O O I' — CO I- U) N � LOI ) qt I� O N O c CO N 00 � Ld CO Ct O I�i N O N O N N O CO Il- to CO 00 I' N O � C CC) Il - Mi N (0 L6 r- CO x �- U d E - U r m 613� - d m a o 0 o >,a amc U 6ci- O O O O It I� O C+ d 5 M 7 Q (D CO U±) N O 00 O O 00 O Un 't I` N UCS O N 00 O O 00 O N N N O N M O O D N N O - r O OOD C07 G O LO CD Ch N CO lqt O Ef? E9� Un CO IT Un Un N I It N O v d' M N CO � LO O M q� Un OD r Un (Q M Il � � Lr N I- C) (M N O W 00 O (0 I,- � CC) 00 - 000 0 C U C7 N (0 V) CO 69? 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V M V U� V� (n 0 0 0 IT fM co O O 'It 00 O M M CO U() V) Ui N ';T Ulf 00 O Un M M V 00 d' O t- T-: (0 C0 Il- I,- lq' m [t Un O O O co IT d' Ulf 00 00 I-�- N T-: Vt M I�i v U) I I I I I "' CA C X .2 1 M Q E cn _U CL) (U U (D U N E N N Q M_ O M N M O rn m a C U a C V- U X U d C N W O m0 C: N C O (D d U x �- U d E - U r m ? - d m a o 0 o >,a amc U > �C'~c O ai U L) co N C d r > .- > C+ d 5 M 7 Q y C c 10 CL � Q W �W O,NO W m —CL•t N a V ` N H u) V H w a- LL O 11 LL LL CA C X .2 1 M Q E cn _U CL) (U U (D U N E N N Q M_ O M N M O CITY OF SAN RAFAEL EXHIBIT II PARAMEDIC SERVICE AREA ZONE B HISTORY OF TAX RATES AND CAPS Fiscal Residential Residential Authorized Non -Residential Authorized Year Year Tax Rate Tax Rate Cap Cap Tax Rate Tax Rate Cap Explanations Cap Explanations 2006-07 $ 61.00 $ 61.00 $ 0.0800 $ 0.0800 75.00 2007-08 $ 75.00 $ 85.00 $ 0.0945 $ 0.1100 Passage of Measure P 2008-09 $ 77.00 $ 85.00 $ 0.0960 $ 0.1100 85.00 2009-10 $ 81.00 $ 85.00 $ 0.1030 $ 0.1100 $ 2010-11 $ 85.00 $ 85.00 $ 0.1100 $ 0.1100 0.1100 2011-12 $ 89.00 $ 108.00 $ 0.1200 $ 0.1400 Passage of Measure 1 2012-13 adopted $ 89.00 $ 108.00 $ 0.1200 $ 0.1400 Passage of Measure E & F 2013-14 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 Residential Authorized Non -Residential Authorized Year Year Tax Rate Tax Rate Cap Cap Tax Rate Tax Rate Cap Explanations Cap Explanations 2006-07 $ 61.00 $ 61.00 $ 0.0800 $ 0.0800 75.00 2007-08 $ 75.00 $ 85.00 $ 0.0945 $ 0.1100 Passage of Measure H & 1 2008-09 $ 77.00 $ 85.00 $ 0.0960 $ 0.1100 85.00 2009-10 $ 81.00 $ 85.00 $ 0.1030 $ 0.1100 $ 2010-11 $ 85.00 $ 85.00 $ 0.1030 $ 0.1100 0.1100 2011-12 $ 85.00 $ 85.00 $ 0.1100 $ 0.1100 $ 2012-13 adopted $ 89.00 $ 95.00 $ 0.1200 $ 0.1320 Passage of Measure E & F 2013-14 proposed $ 89.00 $ 95.00 $ 0.1200 $ 0.1320 MARININOOD (CSD) PARAMEDIC SERVICE AREA ZONE B HISTORY OF TAX RATES AND CAPS Fiscal Residential Residential Authorized Non -Residential Authorized Year 63.50% Tax Rate 2008-2009 Cap 36.20% Tax Rate 63.70% Cap Explanations 2006-07 $ 61.00 $ 61.00 $ 0.0800 $ 0.0800 2007-08 $ 75.00 $ 85.00 $ 0.0945 $ 0.1100 Passage of Measure M 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 adopted $ 85.00 $ 85.00 $ 0.1100 $ 0.1100 2013-14 proposed $ 85.00 $ 85.00 $ 0.1100 $ 0.1100 Paramedic Tax Ratio Fiscal Year Residential Non -Residential 2006-2007 62.60% 37.40% 2007-2008 63.50% 36.50% 2008-2009 63.80% 36.20% 2009-2010 63.70% 36.30% 2010-2011 63.30% 36.70% 2011-2012 63.70% 36.30% 2012-13 adopted 63.70% 36.30% 2013-14 preliminary 63.50% 36.50% W:\Management Services- WorkFile\Finance- WorkFile\Accounting and Budgeting\Revenue Schedules-Tracking\Paramedic Tax\FY13-14 Budget\paramedic tax rate & ratio history 13-14.xlstax rate & tax ratio 5/3/201311:53 AM ORDINANCE NO. 1911 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL CONTINUING THE PARAMEDIC TAX RATES, COMMENCING WITH FISCAL YEAR 2013-2014, AT THE RATES ESTABLISHED IN ORDINANCE NO. 1904 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 NOW RESIDENTAL PROPERTIES), AND FOR RESIDENTIAL AND NOW 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 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 2013-2014; 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 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 Page 1 of 2 of San Rafael hereby sets the tax rate for paramedic services within City limits commencing in fiscal year 2013-2014, 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 2013-2014, 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 2013-2014, 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. Attest: 1'z0,7%e!z '�_- - FV -4 Kot'lc ' Esther C. Beirne, City Clerk The foregoing Ordinance No. 1911 was read and introduced at a Regular Meeting of the City Council of the City of San Rafael, held on the 20th day of May, 2013, and ordered passed to print by the following vote, to wit: AYES: Councilmembers: Colin, Connolly, Heller, McCullough & Mayor Phillips 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 3rd day of June, 2013. ESTHER C. BEIRNE, CITY CLERK Page 2 of 2 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. 5-a DATE OF MEETING: May 20, 2013 FROM: Mark Moses DEPARTMENT: Finance DATE: May 8, 2013 TITLE OF DOCUMENT: CONSIDERATION TO ADOPT AN ORDINANCE TO ESTABLISH A TAX RATE FOR FISCAL YEAR 2013-2014 FOR PARAMEDIC SERVICES FOR BOTH RESIDENTIAL AND NOW 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 d��N n.wwwsixw-n+�r �—. Department Head (signature) *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL/ AGENCY AGENDA ITEM: City Manager (signature) NOT APPROVED REMARKS: APPROVED AS TO FORM: City Attorney (signature)