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
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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)