HomeMy WebLinkAbout06/26/2012 02 Discussion Regarding Regional Fire Authority r AN,
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: June 26, 2012
ITEM TITLE: Discussion regarding Regional Fire Authority
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❑ RFA Study Session
6/19/2012
REGIONAL FIRE AUTHORITY
I FINANCIAL CONSIDERATIONS
CURRENT COST OF SERVICE TO CITIZENS
General budget cost plus $.215 per 1000 EMS levy
Citizens of Yakima: $ 1.721 + $ 0.215= $ 1.936 per 1000. (pg. 6)
Citizens of Union Gap: $ 2.302 + $ 0.215= $ 2.517 per 1000 (pg. 7)
Citizens of District 11: $ 0.751 + $ 0.215= $ 0.966 per 1000 (pg. 7)
Citizens of District 10: $ 0.803 + $ 0.215= $ 1.018 per 1000 (pg. 6)
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6/19/2012
CURRENT SERVICE LEVEL
YAKIMA & DIST. 10:
STRUCTURE FIRE: 5 on duty engines, one B.C. w/1 engine reserve 67% of the time.
COMMERCIAL FIRE: 5 on duty engines 67% of the time, plus one on duty ladder truck, one B.C.
12 fire investigators
Tri County Haz -mat team
Tech rescue team
ARFF protection
Public education Officer
On duty mechanic
1 on duty training officer
UNION GAP & DISTRICT 11
STRUCTURE FIRE: 1 on duty engine, one call back WV engine, call back U.G. crews
COMMERCIAL FIRE: 1 on duty engine, 1 on duty ladder truck, one call back WV engine and
call back U.G. crews,
Tech rescue team
Fire codes inspection
RFA SERVICE LEVEL
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All FOUR AGENCIES IN RFA
❑ STRUCTURE FIRE: 6 on duty engines, one B.C. w/ 1 engine in reserve 67% of the time, call
back U.G. crews
❑ COMMERCIAL FIRE : 5 on duty engines, one on duty ladder truck, one B.C. w/ 1 engine in
reserve 67% of the time, call back U.G. crews.
❑ 12 fire investigators
❑ Tri County Haz -mat team
❑ Tech rescue team
❑ ARFF protection
3 Public Education Officer
❑ 2 on duty mechanics
❑ 2 on duty training officers
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6/19/2012
RFA COST TO CITIZENS
General budget plus benefit charge = $ 2.061 per 1000 (pg. 6)
EMS levy = $ 0.215 per 1000
Total cost = $ 2.276 per 1000 for all citizens in RFA
Revenue generated = $14,309,340.14
COST DIFFERENCE FOR CITIZENS FOR RFA
YAKIMA CITIZENS: Increase of $ 0.36 per 1000
UNION GAP CITIZENS: Reduction of $ 0.241 per 1 000
DISTRICT 11 CITIZENS: Increase of $ 1.31 per 1 000
DISTRICT 10 CITIZENS: Increase of $ 1.258 per 1000
INCREASE COST CONSIDERATIONS
The RFA is designed to be completely self sufficient and not reliant on City reserve
funds or capital funding sources. The RFA is designed with cost of inflation increases as
well as a Capital replacement funding reserve fund.
Currently the City of Yakima Fire Department has a Capital improvement fund of
$291,851 with no regular infusion of funds. (pg. 22)
J The City of Union Gap has a Capital reserve fund of $253,196. which does not
have a regular infusion of funds. (pg. 40)
The RFA has a planned Capital reserve fund accumulation of $1,763,383 average
per year. (pg. 5) (11% reserve fund per year)
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6/19/2012
BENEFIT CHARGE CONSIDERATIONS
❑ The benefit charge listed is at the maximum allowable charge by law (60% of the operating
budget)
Using the collection rate listed above, the benefit charge would be $1.061 per 1000.
The full amount of benefit charge can be reduced as noted on page 6 and continue to meet
projected costs.
REAL COST TO CITIZENS
Currently citizens in the cities are paying property taxes, sales tax, utility tax, etc which
combined are used to fund various departments. The citizens are also paying $ 0.215 per
1000 for an EMS levy.
With an RFA, they would pay the same taxes except a $ 1.00 per 1000 reduction in property
tax and an added benefit charge of $1.03 per 1000.
The citizens would literally be paying $1.03 per thousand ($154.50 on a $150,000 home)
more then they were before the RFA was formed.
❑ Discuss what citizens gain with this increased cost.
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6/19/2012
CITY BUDGET CONSIDERATIONS
Each City would have a revenue surplus if the RFA were implemented. This is the result of
elimination of the cost of an entire cost of a City Department. The Cities would also be
required to reduce property tax collection by $1.00 per thousand. The results are listed
below.
YAKIMA: Reduction of FD cost $9,663,965, Reduction of tax collection $5,61 6,076 for a net
surplus of $4,047,889 per year.
UNION GAP: Reduction of FD cost $1,270,407, Reduction of tax collection $551,977 for a
net surplus of $718,430
TOTAL SURPLUS: $4,766,319
BENEFIT CHARGE CONSIDERATIONS
o Total cost of RFA (without Capitol or contingency fund) $12,887,891
- Total Collection $1 ad valorem + $.215 EMS + full 60% Benefit Charge $14,309,340
Amount left for Capital contingency fund (annually) $ 1,421,449
(11% of operational budget)
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6/19/2012
DECISIONS RFA STUDY GROUP NEEDS TO MAKE
Do we need to charge the full 60% benefit charge?
❑ Can the Cities use part of their excess to fund capitol?
How do we apply the benefit charge fairly to citizens and businesses?
WHAT'S NEXT?
July - we plan to have a presentation on the benefit charge system that Kent
Regional Fire Authority uses
August - a determination will be made on how much of a benefit charge will be
needed
September — we will develop a benefit charge fee schedule
Once these decisions are made, the Committee will put together a full
recommendation report for all elected officials so that a planning committee can be
formed
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