HomeMy WebLinkAboutFin Paramedic Tax FY2014-151! =*F"rm1R1X7mJkflW
Prepared by: Mark Moses
Finance Director
Agenda Item No: 6, a
Meeting Date:2014
City Manager ApprovaV!
FOR FISCAL YEAR 2014-2015 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 TH
VOTER APPROVED PARAMEDIC SERVICES SPECIAL TAX I
RECOMMENDATION: Pass the Ordinance to Print Setting the Paramedic Tax Rates for
2014-2015 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.
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
File No.:
2c
Council Meeting.-
Dispositiow— 0�d(vw4fca_ lc3�>IA
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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 1, 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 1. 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 vot(s
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 ceg 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 Ceng
Residential
Tax Ce"Ifing
Non -Residential
Current
Rates
San Rafael
$1 O�8 per it
$10.140 r)izr Qri ft.
_$89 per unit / $0.12 per sq ft
No. 13
_upn
$95 per unit=,
$0.132 per sq ft.
$89 per unit / $0.12persq ft
_CSA
CSA No. 19N,
$9§ r
$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
2014-2015.
ANALYSIS: Tax rates and paramedic charges are based upon recovering the cost of service. The
cost of the paramedic program expenditures has been determined in a manner consistent with the
most recent business cost study. The sources of funds projected to cover the projected fiscal year
2Q14-2015 program costs of $6,594,335, are #i order) Paramedic Tax, Third Party
Billings for medical emergency response, grant reimbursements and fund balance. (See Exhibit 1)
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Based upon projected costs, revenues and service levels, the current tax rates will be sufficient ttit,
cover the operating expenses of the paramedic program for the upcoming year. The paramedic
program has been able to operate effectively without raising rates in CSA No. 13 and CSA No. 1
since July 1, 2012, in the City of San Rafael since July 1, 2011, and in Marinwood CSD since
July 1, 2010. The Fire Department will review billing recovery and expenditure trends during the
first half of fiscal year 2014-2015, preliminarily assess the impact of maintaining service levels in
future fiscal years on future tax rates, and report back during the mid -year review.
Staff proposes to maintain the current respective residential rates of $85 to be levied in Marinwoo
CSD, and $89.00 to be levied in the City and CSAs No.13 and No. 19 (see Exhibit 11). Total living
units for the City plus these three jurisdictions are 27,344 based upon Marin County Auditor
Controller data. The residential sector contributes 64% of the total paramedic tax revenues (see
Exhibit 11). 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
i L ax revenue (see Exhibit 11). Total revenue from these taxes as well as third party billings and othe
reimbursements and revenues is projected to generate $6,526,377.
All of the service areas have been provided with the proposed paramedic budget for fiscal year
2014-2015, 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
.esidential and non-residential (commercial and industrial) ratepayers in all jurisdictions.
The paramedic services are accounted for in the Paramedic Special Revenue Fund. This fund
operates self -sufficiently with revenues from paramedic taxes, third party medical billings and other
reimbursements. The total expenditures for fiscal year 2014-2015 are projected to be $6,594,335.
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.
Staff recommends that City Council accept the report and pass the Ordinance to print.
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Current
Rates
�� � �IIII
Proposed
Rates Al
Projected
Revenues
San Rafael
$89/$0.12
$89/$0.12 -]
►$3)3811800 1�
$89/$0.12
$89/$0
=41.12
$89/$0.12
$89/$0.12
1 "00
Sub -total: Paramedic T ax
$3,816,506
Third Party Billings
$275357000
il- Other Reimbursements -
L Misc. Revenue
Total Revenues
$6,526,377
All of the service areas have been provided with the proposed paramedic budget for fiscal year
2014-2015, 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
.esidential and non-residential (commercial and industrial) ratepayers in all jurisdictions.
The paramedic services are accounted for in the Paramedic Special Revenue Fund. This fund
operates self -sufficiently with revenues from paramedic taxes, third party medical billings and other
reimbursements. The total expenditures for fiscal year 2014-2015 are projected to be $6,594,335.
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.
Staff recommends that City Council accept the report and pass the Ordinance to print.
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CITY OF SAN RAFAEL EXHIBIT 11
PA RA MEDIC SER VICE A R ZONE B
HISTORY OF TAX RATES AND CAPS
Fiscal
63.80%
Residential
Authorized
Non -Residential
Authorized
Year
63.30%
Tax Rate
2011-12
Cap
36.30%
Tax Rate
63.70%
Cap Explanations
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
$
89.00
$
108.00
$
0.1200
$
0.1400 Passage of Measure 1
2012-13
$
89.00
$
108.00
$
0.1200
$
0.1400
2013-14 adopted
$
89.00
$
108.00
$
0.1200
$
0.1400
2014-15 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
63.80%
Residential
Authorized
Non -Residential
Authorized
Year
63.30%
Tax Rate
2011-12
Cap
36.30%
Tax Rate
63.70%
Cap Explanations
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
$
0.1030
$
0.1100
2011-12
$
85-00
$
85.00
$
0.1100
$
0.1100
2012-13
$
89.00
$
95.00
$
0.1200
$
0.1320 Passage of Measure E & F
2013-14 adopted
$
89.00
$
95.00
$
0.1200
$
0.1320
2014-15 proposed
$
89.00
$
95.00
$
0.1200
$
0.1320
MARINWOOD (CSD)
PARAMEDIC SERVICE AREA ZONE B
HISTORY OF TAX RA TES AND CAPS
Fiscal
63.80%
Residential
Authorized
Non -Residential
Authorized
Year
63.30%
Tax Rate
2011-12
Cap
36.30%
Tax Rate
63.70%
Cap Explanations
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
$
85.00
$
85-00
$
0.1100
$
0.1100
2013-14 adopted
$
85.00
$
85.00
$
0.1100
$
0.1100
2014-15 proposed
$
85-00
$
85.00
$
0.1100
$
0.1100
2008-09
63.80%
36.20%
2009-10
63.70%
36-30%
2010-11
63.30%
36.70%
2011-12
63.70%
36.30%
2012-13
63.70%
36.30%
2013-14 adopted
63.50%
36.50%
2014-15 proposed
63.60%
38.40'
W-.�ccounting and Budgeting\Revenue Schedules- Track ing\Pararnedic Tax\FY14-15 Paramedic Tax Budget\pa ra medic tax rate & ratio history 14
15tax ra& tax ratio
4/7/201te43-57 PM
1111,
A 111Lj ! •
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAE
CONTINUING THE PARAMEDIC ♦ RATES,
YEAR 2014-2015, AT THE RATES ESTABLISHED IN ORDINANCE NO. 191
FOR RESIDENTIAL AND i = . PROPERTIES i
SAN RAFAEL, COUNTY SERVICE AREA NO. 13, AND COUNTY SERVICE ARE
NO. 19. ($89.00 FOR RESIDENTIAL AND $0.12 PER SQUARE FOOT FOR NON
RESIDENTAL ..i. ♦ i FOR RESIDENTIAL AND i
RESIDENTIAL PROPERTIES IN THE MARINWOOD COMMUNITY SERVICE
DISTRICT ($85.00 FOR RESIDENTIAL AND $0.11 PER SQUARE FOOT FO
NON-RESIDENTIAL PROPERTIES)
DivisionNOW THEREFORE, the City Council of the City of San Rafael does ordain as follows:
• Chapteri► Section3.28.060 thereof,the Council of ` City
of San Rafael hereby sets the tax rate for paramedic services within City limits commencing in fisc'-
year 2014-2015, at $89.00 per year for each living unit, and $0.12 per square foot for non-residentic-
structures.
Division 2. The City Council hereby sets the Paramedic Tax Rates for County Servici
Area No. 13 and County Service Area No. 19, commencing with fiscal year 2014-2015, at $89.00 pe
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 Marinwool
Community Services District, commencing with fiscal year 2014-2015, at $85.00 per year for eacl
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 il
for any reason held to be invalid, such holding or holdings shall not affect the validity of the remainini
portions of this ordinance and each section, subsection, sentence, clause and phrase thereol
irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrase,
be declared invalid. i
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*
Esther C. Beirne, City Clerk
The foregoing Ordinance No. 1921 was read and introduced at a Regular Meeting of the City Council
of the City of San Rafael, held on the 5th day of May, 2014, and ordered passed to print by the
following vote, to wit:
AYES: Councilmembers: Bushey, Colin, Connolly, McCullough & Mayor Phillips
.?nd 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 May, 2014.
ESTHER C. BEIRNE, CITY CLERK
INSTRUCTIONS: i' BAOF • CONTRACT,
ORDINANCE OR RESOLUTION BEFORE APPROVAL COUNCIL
FROM: Mark Moses
! ♦ i
! • April 22, 2014
TITLE OF ii ORDINANCE OF i OF OF ' RAFAEL
CONTINUING PARAMEDIC RATES, COMMENCINGFISCAL YEAR 2014-2015,
RATES ESTABLISHED IN ORDINANCE NO. 1911 FOR RESIDENTIALANDNON-RESIDENTIAL
PROPERTIES
.O! . OF 1 RAFAEL
COUNTY SERVICE ♦ RA O AND'COUNTY
SERVICE AREA ! 19. '.8911 FOR RESIDENTIAL AND $0PER Q''E FOOT FOR NOW
RESIDENTAL PROPERTIES), D FOR RESIDENTIAL . D NON-RESIDENTIAL !ii! .
MARINWOOD COMMUNITY SERVICES i ($85.00 FOR RESIDENTIAL $0.11 PER
SQUARE ii FOR i i PROPERTIES)
o�
Department Head (signature)
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