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Home My Public Portal About19 Fire Tax FundFIRE TAX FUND is~ s~.~~.~, ~,~.,.~tiy ~d e~ .~~~a .. .,.'~ e~s ~ w,~~.~.~ ,. CITY OF RAnC O MIRAGE FIRE TAX FUND FUND 215/216 FIRE TAX FUND PROGRAM DESCRIPTION In 1978, the City began to study alternatives for providing fire protection services in order to provide acceptable levels of services to the community. At a City-wide election on June 3, 1980, 72% of the voters affirmed their support of the imposition of a fire tax, as authorized by AB618, legislation enacted in 1979. In October 1981, the Cities of Rancho Mirage, Palm Desert and Indian Wells formed the Cove Communities Services Commission to oversee the fire operations of the three Cities. Paramedic and police services, as well as a senior center, have been added to the jurisdiction of the Commission over the years. The Fire Tax Fund is that part of the City's budget for fire and paramedic services as administered by the Cove Communities Services Commission. One source of revenue is the parcel charge. Every year, each parcel is assessed a Fire Tax and a Fire Excise Tax to offset expenditures. Generally, the 1980 Fire Tax remains fixed for all parcels, unless new construction or demolition has occurred. After nearly ten years of only slightly increasing revenues, the Fire Excise Tax was adopted by the City Council in July 1990 to close the widening gap between revenue and expenses. For FYs 2003-04 and 2004-05, revenue from the Fire Tax and Fire Excise Tax is projected to total $927,000 and $942,000, respectively. Another significant source of revenue is property tax. Effective July 1, 1993, Rancho Mirage withdrew from the Riverside County Structural Fire Tax System (the funding mechanism for fire protection) and started directly receiving property tax revenue. For FYs 2003-04 and 2004-05, property tax revenue is projected to total $1,102,000 and $1,179,000, respectively. The major expenditure in this Fund relates to services provided by contract with Riverside County for fire suppression, prevention, inspection, investigative and enforcement services at an estimated cost for FYs 2003-04 and 2004-OS of $2,870,000 and $3,170,000, respectively. Continuing from prior years is a contribution of $64,000 to an ongoing equipment replacement fund. In July 2000, the City Council approved the Cove Commission's recommendation to increase staffing levels in the three Cities. Specifically, the hiring of 18 additional fire fighters and paramedics, acquisition of a paramedic ambulance stationed at the Mesa View fire station in south Palm Desert, and paramedic rank upgrades were approved by the City Councils of the three Cities. At the April 18, 2001, meeting of the Cove Communities Services Commission, the Commission approved the second phase to complete the staffing upgrade. Specifically, the first phase discussed above did not upgrade the three fire engines located in Palm Desert from two staff to three staff each. 233 Rancho Mirage's projected share of cost for FY 2002-03 fire protection services provided to Rancho Mirage, Palm Desert and. Indian Wells is currently 26.98% of the total cost. This is a decline from previous years that reduces our share of cost: approximately 31.3% in FY 1995-96, 28.8% in FY 1996-97, 28.7% in FY 1997-98, 28.2% in FY 1998-99, 27.4% in FY 1999-00, 27.1% in FY 2000-01 and 27.5% in FY 2.001- 02. The current 26.98% share of cost for FY 2002-03 has been used to estimate our share of cost for FYs 2003-04 and 2004-OS because assessed value information. will not be available until early next fiscal year. Cost is allocated to the three Cities based on the assessed valuation of property in each City. The City has two fire stations, located at 70-800 Highway 111 and 70-751 Gerald Ford Drive. Palm Desert has three. fire stations and Indian Wells, .one for a total of six. BUDGET HIGHLIGHTS • The total cost of fire protection services provided to the three Cities of Rancho Mirage, Palm Desert and Indian Wells is estimated to be approximately $11,136,000 for FY 2003-04. Rancho Mirage's .percentage share of cost is currently 26.98 % or approximately $3,000,000 for FY 2003-04, reduced. by projected salary savings to $2,870,000. For FY 2004-OS the .amount budgeted for fire protection services is increasing 10.45% to $3,170,000. • Rancho Mirage's percentage share of cost has decreased from approximately 31.3% in FY 1995-96 to 26.98% in FY 2002-03. This is because costs are allocated to the three Cities .based on assessed value and Palm Desert's assessed value proportionally increased more rapidly. For purposes of budget. preparation, Rancho Mirage's share of cost is assumed to remain at 26.98% for both fiscal years. • Fire protection costs have increased more rapidly than the revenue generated from property tax and the assessment revenues of Fire Tax and Fire Excise Tax. In FY 2002-03 for the first time, it is projected that the General Fund will commence an operating subsidy of $169,761 to maintain a $0 cash balance in the Fire Tax Fund. This relatively minor subsidy is due to the. Fund's cash balance at June 30, 2002, which. exceeded $600,000. This cash is being spent in FY 2002-03. The subsidy is projected to increase to $1,466,055 in FY 2003-04 and decline to $1,187,175 in FY 2004-OS due to the completion of station remodeling. projects in FY 2003-04. In subsequent years, the subsidy is anticipated to increase as operating costs exceed revenues. The Northside Capital Projects Fund is budgeting- $2,850,000 in FY 2004-OS for acquisition of land and construction of a third fire station in the north end of the City. Once this third station becomes operational, Rancho Mirage's .share of cost will be budgeted in the Fire Tax Fund. 234 c~~r of wu~ceo ~u~acE FOND FlNIINNCW. SOMMARY FONDS 215/216 FIRE TAX FOND CITY OF R tyC O MIRAGE 0 ~~ FY 01-02 FY 02-03 FY 02-03 FY 03-04 FY 04-05 Ac_ foal Bud et Est_ ate Bu_ dget Bud et Beginning Fund Balance Reserved for encumbrances/continuing .appropriations Reserve for Future Public Facilities Undesignated Fund Balance Total Fund Balance Revenues Expenditures Expenditures from current year's budget Expenditures from reserved for encumbrances and continuing appropriations Total Expenditures Ending Fund Balance Reserved for encumbranceslcontinuing appropriations Reserve for Future Public Facilities Undesignated Fund Balance Total Fund Balance $ 102,170 0 97,,870 488,370 0 36,239 35,277 37,773 37,773 37,773 965,339 268,781 531.,444 (488,370) 0 1,103,748 304,058 667,087 37,773 37,773 1,992,998. 2,549,680 2,15b,086 3,521,880. 3,335,000 2,425,359 3,093,481 2,785,400 3,033,510 3,335,000 4,300 0 0 488,370 0 2,429,659 3,093,481 2,785,400 3,521,880 3,335,000 97,870 0 488,370 0 0 37,773 35,277 37,773 37,77.3 37,773 531,444 (275,020) (488,370) 0 0 $ 667,087 -.- (239,743) . 37,773 37,773 37,773 235 REVENGE ACfIVITY DETAIL For Fisfel Years 2003.04 antl 200405 FI1~D 215/216 p F1R~ 1'AX ~6DND ACCOUNT ACCOUNT NUMBER NAME DESCRIPTIONS AND ASSUMPTIONS Budget FY 2003-2004 AMOUNT Budget FY 2004-2005 AMOUNT 491 S Fire Department Building inspections by the Fire Department. $ 20,000 $ 20,000 TOTAL $ 20,000 $ 20,000 6400 Operating Operating subsidy from the General Fund necessary Transfer In to maintain a $0 cash balance in the Fire Tax Fund. $ 1,466,088 $ 1,187,175 TOTAL $ 1,466,088 $ 1,187,175 6402 Transfer from Transfer of the Structural Fire Tax component of the Rancho Mirage 1 % levy ($1,102,000 for FY 2003-04 and Community Service $1,179,000 for FY 2004-OS) and the benefit District assessments consisting of the Fire Tax and Fire Excise Tax ($927,000 for FY 2003-04 and $942,000 for FY 2004-OS). $ 2,029,000 $ 2,121,000 TOTAL $ 2,029,000 $ 2,121,000 6404 Transfer from Transfer of property taxes in-lieu for fire services Housing Authority from the Housing Authority. $ 6,825 $ 6,825 Fund TOTAL $ 6,825 $ 6,825. FUND TOTAL $ 3,521,880 $ 3,335,000 236 EXPEND1711RE ACf1VITY DETAIL Fob FfSCeI Yeazs 200304 anU 2004.05 FUND 215/216 • FIRE TAX FUND Budget Budget ACCOUNT ACCOUNT FY 2003-2004 FY 2004-2005 NUMBER NAME NSTIFICATION FOR STAFF REQUESTS AMOUNT AMOUNT 7400 Professional/ 1) Service to enroll parcel charges $ 7,200 $ 7,200 Technical 2) Indian Wells administrative reimbursement 8,000. 8,000 3) Fire Marshal's office -rent, utilities and. miscellaneous costs 18,400 18,800 TOTAL $ 33,600 $ 34,000 7412 Fire Services Contract for services with Riverside County. $ 2,870,000 $ 3,170,000 TOTAL $ 2,870,000 $ 3,170,000 7416 Equipment Contribution to Cove Communities Services Replacement Commission equipment replacement fund. $ 64,000 $ 64,000 TOTAL $ 64,000 $ 64,000 7606 water Landscaping and staff use at two fire stations. $ 5,000 $ 5,000 TOTAL $ 5,000 $ 5,000 7612 Maintenance Landscaping and building. maintenance at two fire stations. $ 28,000 $ 28,000 TOTAL $ 28,000 $ 28,000 7851 Insurance & Bonds Flood, fire and earthquake insurance for the City's two fire stations. $ 6,510 $ 6,600 TOTAL $ 6,510 $ 6,600 7863 County Processing Annual fee charged by Riverside County to collect Fee and remit property taxes to the Fire Tax Fund. $ 18,000 $ 19,000 TOTAL -- - $ 18,000 $ 19,000 8000 Supplies Miscellaneous supplies for two fire stations.. $ 400 $ 400 TOTAL $ 400 $ 400 $012 Small. Tools, Miscellaneous tools as required. $ 8,000 $ 8,000 Furniture & Equipment TOTAL $ 8,000 $ 8,000 FUND TOTAL $ 3,033,510 $ 3,335,000 237 238