|
Back to Calendar
Return
|
| |
Agenda Item 29.
|
| City Council Meeting |
|
|
|
| Subject: |
| Approval of the Fiscal Year 2018-19 Property Tax Rate to Fund the City Paramedic Program |
| RECOMMENDATION |
1) Approve resolution authorizing the tax levy; and 2) Auhorize staff to determine the Paramedic Program costs based upon a reasonable cost allocation methodology.
|
| BACKGROUND/DISCUSSION |
At the March 7, 1978, general municipal election, the qualified electors of the City, by and through the City Council, approved the levy of an annual property tax rate to fund the City’s Paramedic Program. This annual property tax was not to exceed $0.20 per $100 of assessed value (25% of market value) per year. Beginning in 1981, the County of Orange implemented a policy change concerning Assessed Value. The tax roll is now reported at “Full Taxable Value” rather than Assessed Value. This change resulted in a revised paramedic tax levy of $0.045 per $100 of Full Taxable Value. It did not, however, change the actual amount of taxes paid by the property owner.
State law prohibits the City Council from increasing the paramedic levy above the voter-authorized level. The rate of $0.045 is the maximum that can be levied, regardless of program costs, without a voter-approved increase. The passage of Proposition 218 by the voters in November 1996 had no impact on the City’s ability to levy the annual Paramedic Tax, as the tax was voter-approved in 1978. Prior to the beginning of each fiscal year, the City Council adopts a resolution approving the rate of tax upon taxable property within the City of Brea. The adoption of the proposed resolution enables the Orange County Auditor-Controller to apply the rate of taxation to the City of Brea’s property tax rolls, and ultimately enables the City to maintain the Paramedic Program.
Since its inception in 1979, the Brea Fire Services Department Paramedic Program has grown considerably from the days when the paramedics responded to calls in an old red van. Currently, the paramedic program utilizes a modern paramedic engine company configuration. The original program that began in Fiscal Year 1978-79 had a budget of $200,000 and was fully funded by revenues generated from the paramedic tax. While the actual tax rate has remained constant over the past 38 years, additional revenue has been generated from increases in the property values. Meanwhile, direct expenditures have increased as the program has been greatly enhanced, as outlined below, and as the City’s population and service demands have increased.
About the Paramedic Program
A “Paramedic Engine Company” is considered the most efficient method of Emergency Medical Service (EMS) delivery, and is currently the most common staffing configuration in operation locally and regionally. This configuration provides for Advanced Life Support capability within its fire fighting and emergency response resources without compromising either service. The City’s paramedic units, Brea Engine Company #1, Truck Company #2 and Engine Company #3, are complete units that respond to both fires and medical emergencies. In addition, resources necessary to provide functional support, such as extrication of patients and fire protection during traffic emergencies, are available at the scene with the paramedic unit.
The program started in Fiscal Year 1978-79 with seven certified paramedics. The Brea Fire Services Department currently carries a complement of 21 certified firefighter/paramedics and one Emergency Medical Services Manager. This allocation level meets the staffing requirement of the Orange County EMS Agency while providing for uninterrupted deployment of paramedics during leave, training and emergency conditions. Just as the nature of emergencies has changed, so has the required paramedic skill level. Paramedics are being delegated greater responsibility in the field as emergency room medicine is continually being evaluated and streamlined. Paramedic staff all receive continuous in-service training on a myriad of topics, including: trauma medicine; air and blood-borne pathogens; environmental emergencies; pediatric medicine, including sudden infant death syndrome; swift water rescue and mass casualty management.
Field techniques have improved greatly since the program began with treatment advances in the areas of Adult and Pediatric Intubation (airway management requiring insertion of appliances into the trachea), cervical-spine treatments and neurological protection, improved treatment for burn victims and the AED (cardiac defibrillation) program, which is in service on all responding Brea units. The below chart illustrates the paramedic call history from calendar year 2013 through 2017. The 2017 call history is also provided as Attachment A and details the medical call history by situation that is within City's limits.
See next page.
Paramedic Response History
|
|
2013 |
2014 |
2015 |
2016 |
2017 |
Total Emergency Medical Calls
(1) |
3,391 |
3,608 |
4,052 |
4,218 |
4,265 |
| Total Calls for Service from Fire Dept. (Including false alarm responses)(1) |
4,308 |
4,777 |
5,364 |
5,413 |
5,373 |
| Percent of Total |
78.71% |
75.52% |
75.54% |
77.92% |
79.38% |
| (1) Data updated to include all call data reported from the Metro Cities Fire Authority Metro Net Communications Report |
|
| COMMISSION/COMMITTEE RECOMMENDATION |
| The Finance Committee reviewed this staff report at its regular meeting held on June 12, 2018 and recommended the resolution be forwarded to City Council. Public comments were made at the meeting and a written copy of those comments provided to the Finance Committee for the record. Staff has made the City Council aware of the comments. |
| FISCAL IMPACT/SUMMARY |
Starting with the FY 2018-19 Budget, the paramedic tax revenue will be accounted for in the new Paramedic Services Fund (Fund 174) separate from the City's General Fund. The new fund was established to account for revenues generated from the paramedic tax and other revenues, as well as costs associated with the Brea Paramedic Program. This includes personnel costs for 21 full-time paramedic positions, one EMS Manager position and related costs to operate the program. More information can be found in the attached Fact Sheet and is provided as Attachment B.
The proposed paramedic tax rate is $0.045 per $100 of Full Taxable Valuation. Based on an estimated Full Taxable Valuation (secured and unsecured value) of $9.952 billion, the estimated tax levy is $4.478 million. The total annual levy also includes a levy on supplemental, public utility and other property values that occur annually which is projected to bring the total levy to $4.899 million.
The former Brea Redevelopment Agency (RDA) which was established in 1971, impacts the flow of paramedic tax revenues to the City. Property owners within the RDA project area pay the same property rate as if they were outside the RDA project area (non-RDA area properties). Paramedic tax for properties outside the RDA project area are remitted to the County and flow directly back to the City. However, under state law, property tax revenue (including the Paramedic Tax) remitted by property owners within the Redevelopment Project Areas to the county was allocated annually first to the Redevelopment Agency.
In 2012, Redevelopment Agencies were dissolved and Successor Agencies were established to pay off the remaining obligations for the former Redevelopment Agencies. As in all California cities, Brea’s property taxes (including Paramedic Tax) remitted from properties in the project areas, are now allocated first to the Redevelopment Property Tax Trust Fund (RPTTF) and that portion needed to pay off the obligations for that fiscal year is forwarded to the Successor Agency. The remaining portion of the Paramedic Tax revenues allocated to the RPTTF are passed back to the City.
As the Successor Agency pays down the obligations of the former Redevelopment Agency, the Paramedic Tax revenues that were previously directed to the RDA and now the Successor Agency are slowly, but surely, coming back to the City for paramedic service sooner than they otherwise would have been. For FY 2018-19, it is estimated that 55% of paramedic tax revenues ($1.210 million) allocated to the RPTTF will be passed back to the City.
The following is a summary of the estimated levy; the amount to be allocated to the Successor Agency and the amount to be passed back to the City:
| Property Description |
Estimated Levy |
Amount to Successor Agency |
Amount to City |
% to the City |
| Non-Redevelopment Area Properties |
$2.699 |
- |
$2.699 |
100% |
| Redevelopment Area Properties* |
$2.200 |
$0.990 |
$1.210 |
55% |
| Totals |
$4.899 |
$0.990 |
$3.909 |
|
* - it is noted that the paramedic tax paid to the County of Orange by redevelopment area property owners is deposited into the RPTTF and then allocated to the Successor Agency and City as described earlier.
It is estimated the paramedic tax rate of $0.045 per $100 of Full Taxable Value will generate $3,909,000 in paramedic tax revenues to the City of Brea in Fiscal Year 2018-19. The revenue collected will cover approximately 69.2% of the $5,652,556 of estimated program costs. The difference is to be funded from the City's General Fund in the amount of $1,388,416 and other revenue sources in the amount of $355,140. Other revenue sources include pass-thru revenue received for Advanced Life Support (ALS) Ambulance transport services as well as revenue received from the City of Fullerton for Fire Command Staff Sharing of the EMS Manager position. The City of Fullerton reimburses the City of Brea for 59% of the position. |
| RESPECTFULLY SUBMITTED: |
William Gallardo, City Manager
Prepared by: Alicia Brenner, Senior Management Analyst
Concurrence: Cindy Russell, Administrative Services Director and
Wolfgang Knabe, Fire Chief |
|
|
|