HomeMy WebLinkAboutFin Paramedic Tax FY2010-11Agenda Item No: 16
Meeting Date: July 6, 2010
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: MANAGEMENT SERVICES '
Prepared by: Cin�osser, City Manager Approval: x
Finance Director
SUBJECT: CONSIDERATION TO ADOPT AN ORDINANCE TO ESTABLISH A TAX RATE
FOR FISCAL YEAR 2010-2011 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 2010-2011 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.: C1 —l1— I 9 —3,3)
Council Meeting: q Ii ' (.)LO ! v
Disposition: 6012d l c4u cc t-¢ {
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 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 2010-2011. 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 2010-2011, the cost of running the paramedic program is
$5,742,800. This sum will be a part of the overall City budget adoption on July 6, 2010. In
fiscal year 2010-2011, the Fire Department will initiate several enhancements to the service
delivery.
➢ In July 2010, the City will bring the third party medical billing function in-house. This
move will provide the Fire Department improved turnaround time for billing, customer
service and ability to maximize cost recovery.
➢ The Department established an EMS coordinator position to handle the oversight of
training and service delivery. This position was filled July 1, 2010.
Staff proposes to raise the residential rate to the cap of $85.00 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.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Also, non-residential units will be billed at the cap or $.11 cents per square foot for all
commercial/industrial sites served by the Paramedic program. Commercial/industrial
customers comprise 36.3% of the total expected tax revenue.
Current charges were shared with members of the County, Marinwood and Community
Services Areas on April 15, 2010 and June 30, 2010. Based upon adopted costs, the rates
recommended are sufficient to cover the operating expenses of the paramedic program for
fiscal year 2010-2011. No General Fund subsidy is required to sustain this program at the
current service level.
The expense budget for the 2010-2011 paramedic program is $5,742,800. 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 $3,685,000, or 64 percent of program costs. Third Party billings are forecasted at
$2,100,000.
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\2010\City\Paramedic tax report 10-11.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
$
2003-04
2,332,935
1,217,697
3,550,632
2004-05
2,519,056
1,428,531
3,947,587
2005-06*
2,668,491
1,485,750
Hit tax caps
4,154,241
2006-07*
2,671,595
1,474,240
Medicare impacts 3rd party billing
4,145,834
2007-08
3,224,610
1,676,412
Measure P - new cap
4,901,022
2008-09
3,210,317
2,025,709
5,236,026
2009-10 revised budget
3,491,000
2,300,000
(a)
5,791,000
2010-11 proposed budget
3,685,000
2,100,000
(b)
5,785,000
*General Fund subsidized the Paramedic Fund for FY2005-06 and FY2006-07 in the amount of $180,500
and $448,500, respectively.
(a) Original budget was $1.9 million. SR Fire department medic units began transporting all EMS
responses, rather than using private ambulances for Basic Life Support calls. This generates greater
ambulance billing revenue. The City revised its budget to $2.3 million.
(b) Based on fiscal year 2010 activity, the City revised its budget to $2.1 million.
WAManagement Services- WorkFile\Finance- WorkFilMccounting and Budgeting\Revenue Schedules-Tracking\Paramedic Tax\paramedic
tax history.xlsTAX HISTORY
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
2003-04
$
54.00
$
61.00
$
0.0675
$
0.0800
2004-05
$
59.00
$
61.00
$
0.0740
$
0.0800
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
2010-11 Proposed
$
85.00
$
85.00
$
0.1100
$
0.1100
(a) See Below
Note:
(a) Rate increase will be based upon Council approval of budget projections.
WAManagement Services- WorkFile\Finance- WorkFile\Accounting and Budgeting\Revenue Schedules-Tracking\Paramedic Tax\paramedic
tax history.xlstax rate
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CDD N
ORDINANCE NO. 1885
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL SETTING THE PARAMEDIC TAX RATE, COMMENCING WITH
FISCAL YEAR 2010-2011, AT THE RATES ALLOWED IN ORDINANCE
NO. 1846 FOR RESIDENTIAL AND NON-RESIDENTIAL PROPERTIES IN
THE CITY OF SAN RAFAEL; AND FURTHER CONFIRMING THE
PARAMEDIC TAX RATES, COMMENCING WITH FISCAL YEAR 2010-
2011 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. ($85.00 FOR RESIDENTIAL AND $.11 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 $81.00 to $85.00 and non-residential properties tax rate should
be increased from $.1030 to $.1100 per square foot for fiscal year 2010-2011, 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
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 $85.00 per year for each living unit, and at $.11 per square
foot for each non-residential structure.
follows:
NOW THEREFORE, the City Council of the City of San Rafael does ordain as
Page 1 of 2
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 2010-2011, at $85.00 per year per living unit, and at $.11 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 2010-2011, shall be at $85.00 per year for
each living unit, and at $.11 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
/)j% /11��
Aberf J. Boropaor
The foregoing Ordinance No. 1885 was read and introduced at a Regular Meeting of the
City Council of the City of San Rafael, held on the 6th day of July, 2010, and ordered
passed to print by the following vote, to wit:
AYES:
Councilmembers:
Brockbank, Connolly, Levine & Mayor Boro
NOES:
Councilmembers:
None
ABSENT:
Councilmembers:
Heller
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 19th day of July, 2010.
h e -4e, Reet
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. >'
FROM:
DEPARTMENT:
DATE:
Cindy Mosser
Finance
July 1, 2010
DATE OF MEETING: July 6, 2010
TITLE OF DOCUMENT: Consideration to Adopt an Ordinance to Establish a Tax Rate for Fiscal Year
2010-2011 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.
dEpktment Head (signature)
�k�1e�1r *4nk 9rieie *�k* �r4e4e *4eie *�k4r �k4nk *** �k9e4e 9e4e* �k4e�k *** 4e4r* ir9e�e �k�k�e
(LOWER HALF OF FORM FOR APPROVALS ONLY)
APPROVED AS COUNCIL /AGENCY APPROVED AS TO FORM:
AGEN ' � ,)T, EM:
�u�
City Mkag (signature) City Attorney (signature)
NOT APPROVED