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06/26/2012 02 Discussion Regarding Regional Fire Authority r AN, l BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting of: June 26, 2012 ITEM TITLE: Discussion regarding Regional Fire Authority SUBMITTED BY: CONTACT PERSON /TELEPHONE: SUMMARY EXPLANATION: Resolution Ordinance Other (specify) Contract: Mail to: Contract Term: Amount: Expiration Date: Insurance Required? No Funding Phone: Source: APPROVED FOR r SUBMITTAL: / City Manager STAFF RECOMMENDATION: BOARD /COMMISSION RECOMMENDATION: ATTACHMENTS: Click to download ❑ 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) 1 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 6, 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 2 • 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) 3 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. 4 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) 5 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 6