Public Hearing on Proposed Fire Assessment Balloting (November 13, 2006)
City of San Carlos Council Staff Report
Council/RDA Meeting Date: November 13, 2006 Item Title: Public Hearing on Proposed Fire Assessment Balloting, Close Balloting and Authorize Counting of the Ballots
Recommendation Staff recommends that the City Council hold a majority protest hearing (hereafter referred to as “Public Hearing”) on the proposed Fire Suppression Assessment measure. This hearing will offer an opportunity for public comment on the proposed Fire Assessment, submittal of any remaining ballots to be cast, the closing of the balloting and authorization to count the ballots received. Staff also recommends continuing final action on the proposed Fire Assessment until the City Council Meeting of November 27, 2006 when a final tally of the ballots will be available.
Fiscal Implications There are no fiscal implications or budget impact to holding tonight’s Public Hearing on the proposed Fire Assessment. However, the measure itself has fiscal implications for the City. The proposed cost to the City for the formation of the Fire Suppression Assessment would be $21,735 and includes all direct expenses related to the printing and mailing of the Proposition 218 required notices and ballots to property owners affected by the proposed assessment ($14,735) and levy administration ($7,000). The costs shown do not include the cost of “hand billing” (estimated at $20,000) which will be necessary if the City desires to receive funds from the assessment during this fiscal year. If the measure is not approved, ballot costs ($14,735) would be covered by the City’s General Fund. If the proposed Fire Suppression Assessment were to be passed by property owners in San Carlos and then implemented by vote of the City Council, the City’s assessment obligation would be $5,277.16 per year, based on parcels owned by the City. This payment would come from the General Fund. The assessment is projected to raise $1,268,527 per year to fund Fire Suppression costs as follows:
Item Funded | Annual Cost | Cross Staffed Truck Service | $511,608 | “OPEB” Retiree Medical Program Costs (Pay Over 20 Years) | $204,050 | Replacement Fund for 4 Fire Engines | $138,123 | Building Replacement Fund | $106,678 | 10% Operating Reserves for Fire Department | $81,493 | Light Vehicle Replacement Fund | $13,867 | Annual Subtotal | $1,055,819 | JPA Revenue Adjustment ($385,680) | $150,181 | Annual Net Proceeds | $1,206,000 | Annual Publication and Collection Costs | $62,527 | Annual Total Levy | $1,268,527 |
If the Fire Suppression Assessment is approved by the property owners and governing bodies of both agencies (City of San Carlos City Council and Belmont Fire Protection District Board), this outcome will also trigger a new funding formula for the joint Belmont-San Carlos Fire Department (moving from a 50%/50% contribution from each agency to a formula that currently equates to 53% San Carlos and 47% Belmont Fire Protection District). This increased cost to San Carlos is known as the JPA Revenue Adjustment and is shown in the table above. A portion of this increased cost ($150,181 per year) will be covered by the proposed Fire Suppression Assessment. The balance of the funding of the JPA Revenue Assessment expense will need to come from the City’s General Fund. Staff would propose to deal with the balance amount that would be due this year if the assessments pass and are implemented in both agencies through a mid-year budget adjustment to the General Fund.
Background On July 24, 2006, the City Council adopted four resolutions, which initiated proceedings to form a Fire Suppression Assessment, approved a preliminary Engineer’s Report (the “Report”) related to the proposed Fire Suppression Assessment, declared the City Council’s intention to hold a property owner protest ballot proceeding, established the rules and procedures governing the balloting process, and set a time and place for a Public Hearing on the Fire Suppression Assessment in full compliance with applicable State law. As noted above, the annual revenue anticipated from this proposed assessment is $1,268,527. The Public Hearing is scheduled for this evening. Notices and ballots were mailed out to all affected property owners on September 29, 2006, which provided property owners at least 45 days prior to tonight’s Public Hearing to cast their vote either in support of or in opposition to the proposed Fire Suppression Assessment. Submitting Ballots and Closing the Ballot Process Tonight the City Council is scheduled to conduct a Public Hearing on the proposed Fire Suppression Assessment to provide property owners a forum to address the City Council and give their testimony. After all testimony has been received, the City Council will ask the public to submit any remaining ballots and close the public testimony portion of the Public Hearing. No more ballots will be accepted after the Public Hearing has been closed. Tabulating The Ballots After close of the Public Hearing, the matter shall be continued to November 27, 2006. In the interim, Muni Financial will work with the City Clerk to tabulate the ballots beginning tomorrow morning at 9:00 a.m. at City Hall. The tabulation will determine if there is a majority protest to the Fire Suppression Assessment. The tabulation process is open to the public and will take two to three days. A majority protest exists if the weighted ballots submitted in opposition to the fire assessment exceed the weighted ballots submitted in favor of the fire assessment. In this regard, the ballots are weighted according to the proportional financial obligation of the affected property. For example, a property that is assessed $100.00 shall have twice the voting power when compared to a property that is assessed $50.00. The results of the tabulation shall be memorialized in a resolution at the November 27th City Council Meeting. If there is no majority protest, the City Council may also adopt a Resolution approving the Final Engineer’s Report and a Resolution ordering the levy and collection of the Fire Suppression Assessment. If the City Council takes these actions, the Fire Suppression Assessment is then formally established and in place commencing this current fiscal year. Alternatives - Conduct the Public Hearing, Take Public Testimony, Close the Balloting and Authorize the Tabulation of Ballots from Property Owners on the Proposed Fire Assessment as recommended in the Staff Report.
- Provide the Staff with alternative direction.
Submitted by: Brian Moura Assistant City Manager Approved by: Mark Weiss City Manager |
