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HomeMy WebLinkAboutEmail from Shari McCracken - Fire Funding-Governance Options Staff Report Menchaca, Clarissa From: McCracken, Shari Sent: Monday,January 15' 2018 1:35 PM To: @O5 Cc: Jessea, K4eegaqPickett, Andy; Ring, Brian; Clerk ofthe Board Subject: Fire Fundimo/GovernanceOptions Attachments: Adrmin.Fine\Norkshop2818.2.pdf Board Members, Attached for your information is the staff report and related attachments that will be the basis for our discussion of funding and governance options for fires services scheduled for the January 23'*Board Meeting. | amsending you the document ahead Vf the regular release of the agenda to provide you sufficient time to read it, due to the length, of the document. The document isalso being provided inadvance tointerested stakeholders, including staff with the Fire Department, City Managers, and public members. | hope you'reall enjoying your day, and may actually see sunshine before the day is over. Take care, Shari U0tedm Chief Administrative Officer Butte County Administration 25 County Center Drive, Suite 200, Orovilie, CA 95965 T830l552L3305 M�: 530.990.5029 ***Please note this lmanew Phone number and update your records accordingly ��* %i a Butte County Administration Shari McCracken Interim Chief Administrative m 25 County Center Drive, Suite 200 T: 530.538.7631 CALIFORNIA . Orovidle, Californiania 95965 F'. 530.538.7120 1 buttecourity.riet(admiiia strat&on Mentbers of the Boord UI ConnellI t ouier=n Kirk I Slr vc, P_crnbert C Dc ig Tc?Mer t.or'ry t/Va ri DATE: January 23, 2018 TO: Butte County Board of Supervisors FROM: Shari McCracken, Interim Chief Administrative Officer Meegan Jiessee, Deputy Administrative Officer RE: Governance and Funding Options for Provision of Fire Protection Services EXECUTIVE SUMMARY This report is provided as follow-up to the Fire Services Restructure discussions held by the Board of Supervisors in May and June 2.017. During the discussions, the Board voted to continue contracting with CAL FIRE, including funding Amador (winter) stations in six of the County's unincorporated communities, and closing one County fire station in Chico. The question that remains, giiven the County's structural financial gap where ongoing costs are growing at a faster rate than discretionary financial resources, is how will services be paid for in the future? The purpose of this report is to provide an overview of the fiscal picture in Butte County and further explore governance and funding options. The County has two general options for funding County services, including fire protection services:. • ,address funding shortfalls during the annual budget process—The County can continue to fund services with discretionary resources and consider service reductions throughout County departments, including Fire, during budget deliberations in years when costs to meet service demands are greater than available financial resources. • Change governance andlor funding structure—The County can continue providing fire protection services with discretionary resources and implement a supplemental funding source to fill any funding gaps; or the County can establish a new governance structure for providing fire protection services, with funding through discretionary resources and a, supplemental funding source. There are a few important underlying assumptions made in this report: • All options allow for contracting with CAL FIRE for the provision of services. • Under any of the funding/governance options, the County will commit to continue funding some level of service from general purpose (discretionary) revenue. Any gap between the cost to provide service levels desired by the public and the County's available financial resources will have to be covered by a new revenue source. • All options may include incorporated jurisdictions. • If a separate district is formed, alll County Fire Department assets, such as vehicles and facilities, would be transferred to the new district. COUNTY FINANCES In order to understand the fiscal challenges facing Butte County, an understanding of the County's current budget and finances, as well as some history, is important. Butte County has limited resources to fund County services and has had this challenge dating back to at least the passage of Proposition 13 in 1978. The limited local, discretionary tax resources in the County have resulted' in a situation where the County struggles to maintain services in the face of rising costs and, over time, revenues that have not kept up with service demands.The following is an overview of County finances. Fiscal Year (FY) 2017-18 Budget Expenditures Table 1 Adapted Budget The County's FY 2017-18 Adopted Budget totals Fiscal Year 2017-18 $533.4 million, as shown in Table 1. The vasa majority of the budget is made up of State, General Fund 164,222,660 federal, or other funds that are restricted to Social Services 135,645,295 specific uses and the Board of Supervisors has Public Health 22,744,298 little to no discretion on how they are spent. Of Behavioral Health 67,542,514 the total budget, $508 million represents Child Support Services 9,182,363 Road Operations 35,129,230 governmental funds, which account for most of Equipment Replacement Funds 2,832,876 the County's operations including, but not Local Transportation-Transit 3,292,000 limited to, law enforcement, fire, social services, CDBG/HOME Funds 2,250,134 public/behavioral health, road maintenance and Fish &Game 38,485 repair, and veterans services. The other $25.4 Non-Operating Funds 50,333,784 million represents internal service funds Capital Project 10,171,876 (insurance and utilities), the Neal Road Waste Debt Service 1„578,676 and Recycling Facility funds, and County Service POB Debt Service 3,065061Oa q Areas,. Internal Service Funds 11,911,876 Enterprise Funds 11,952,308 County Service Areas 1,535,735 [This space intentionolly left blank.] 2 i” u T c Revenues Figure 1 The FY 2017-18 Adopted Budget Governmental Fund Revenue.. includes $503.3 million in $,4823 Million revenues. Total budgeted Statew._._..,..._. expenditures are $533.4 million. 36,% The budget is balanced by the / j% ; , Federal use of$14.9 million of available. //����i/,,�/��� 24% fund balance carryover in the General Fund, and the use of C_47cai sees Tax $15.2 million in restricted fund 1% balance carryover in other funds. other__-, Revenues in the governmental 4% funds total $482.3 million. The Charges fo ,,.,. difference between total budsources services other Farces g and revenues is balanced b �' ' y use PropertyTax.. 14% of available and restricted fund 13% other balances. As shown in Figure 1 Governmental 1% to the right, the County's largest source of revenue in governmental funds is from the State of California (36%), closely followed by federal revenue (24%). Combined, State and federal revenues make up 60% of revenues and the majority are restricted to specific purposes. Other financing sources make up 14% of the revenue and are primarily transfers between County funds such as transfers from non-operating (restricted) to operating funds. Property tax makes up 13% of revenues. Charges for services, local sales tax, other governmental revenues, and other miscellaneous revenues make up the remaining 13%. Most of these revenues are restricted to a specific purpose. [This space intentionally left blank.] 3u Pa e Figiure 2 Discretionary revenues, orrevenues not restricted toa General Purpose Revenue vs. Restricted Revenues specific purpose, are cai|[edgeneral purpose revenue. General purpose revenue isused tofund discretionary County services and programs, such as Sherif[ District Attorney, Fire. and Library services, It is also used to fulfill state mandated maintenance of effort (K4OE) matching requirements and unfunded mandates for certain health and human services, elections, and Agricultural Commissioner activities, as examples. Once mandates are met, the Board of Supervisors can use discretion to determine which progranns receive the remaining general purpose revenue. Figure illustrates that County general purpose revenue isrelatively small compared to other governmental revenues, As shown in Table 2 below, property tax is the largest source ofgeneral purpose revenue (O2%,). Public safety sales tax (from Proposition 172) is the second largest revenue source and accounts for 17% of total general purpose revenues. The public safety sales tax requires the County tofund public safety programs at the required MOE level. The FY 2017-18 Adopted Budget not only meets the MOE level but exceeds it by over $40 million, Another 17% of general purpose revenue is made up of the local share of sales tax; royalties that are primarily composed ofTable Awater lease revenue; fines, forfeitures and penalties that include penalties on late property taxes and some court fines; tobacco lawsuit settlement funds; property tax administration fees; and property transfer tax. The remaining 496ofgeneral purpose revenue ismade up of various franchise fees, taxes, unrestricted State and federal revenues, interest earnings, and miscellaneous revenues. Table 2 County General Purpose Revenue<spm Property Tax � .61,e60,000 Proposition 17zSales nmm Public Safety 16,900,000 Local `^.~ . �� ~` ~~_,00 ~~ Royalties(Table A Water Lease) 3,700,000 Fines,Foreftures, ites 3,399,000 Tobacco settlement Funds 1,900,000 Property Tax Administration Fees' 1,466,000 Property Transfer Tax 1^0e0,000 ps«usFranchise / 970,000 State Stabilization Funds 631,000Interest ''^`/` `��� `' -' ,477,000 Cable TvFranchise 468,000 Homeowners Property Tax Exemption 403,000 Other WscewameousRevenue 270,000 'Open Space Act(Williamson Act)`�-` ^ 83*000 Other Taxes 233,000 Federal Revenues � . � ^ ' - � 226Q00 Motor Vehicle xevenve76,000Other Intergovernmental nnv�ues-'- ' � � 20,000 Other Use of Money&Property 51000 General purpose revenue, along with General Fund available fund balance (carry+overfrom the prior year), make upthe County's discretionary resources. |mFY2O17-18, the majority (67%) ofthe [puntws discretionary resources are dedicated to public safety, which includes the Sheriff-Coroner (52%), Fire (1696), Probation (1096), and District Attorney (996). Figure 3 shows the allocation ofdiscretionary resources compared tototal budget b« department group for FY2017-18. Asinprevious years, the vast majority ofthet113.9nni|Uionimdiscretinnarynesourcesare used to fund Public Safety ($76.7 million).The remaining discretionary resources are dedicated to: ~ Other Departments ($17.6 million),, which include Agriculture, Assessor, Board of Supervisors, Clerk-Record er/E|ectimns, Development Services, LIC Cooperative Extension Programs (Farm, Home and 4-H), Library, Public Works-Non-Road functions, Treasurer-Tax Collector, and Water and Resource Conservation; ; • Miscellaneous ($8.0 million) includes budget units such as Capital Projects, Public Defender, and Grand Jury; m General Fund Contingency ($4.4mmi||iom); m Support Departments ($S.5 million), which is made up ofCounty Administration, Auditor- Controller, County Counsel, General Services, Human Resources. and Information Systems; and • Health and Human Services ($1.7rniK|iow) which is made up of Behavioral Health, Child Support Services, Employment 8LSocial Sen/ices, and Public Health. Figure 3 Discretionary Resources as a Portion, of Total Budget 111 Discretionary Resources Non-Discretionary Resources $250 - --- ---- / ---------------��--����� � �� � � $200 --1 S1su $100 f-- $50 $ Public Safety, Other D*pts Miscellaneous GF Contingency supportmepts Health&numa Services Why Aren't Discretionary Revenues Higher? Butte County has struggled with limited resources for years. Discretionary revenue growth often does not keep up with increasing costs, many of which are attributable to increases in State-mandated programs. Butte County receives the 7" lowest overall tax revenue per capital for all County's in the State based on 2016 California State Controller Data and California Department of Finance population estimates for January 1, 2016.To help understand the unique situation of Butte County, a brief review of tax rates, tax yield and local services/needs is necessary. Tax Rates • Property Taxes - Butte County receives proportionally less property tax revenue than other counties. Proposition 13 reduced the property tax rate to 1% statewide. All local jurisdictions shared in the 1% rate proportionally based on each jurisdiction's rate at the time the measure passed. Butte County had low tax rates prior to Proposition 13 that were based on historically conservative expenditures for County services and, as a result, got a proportionally smaller share of the 1% of property taxes than almost all other counties'.The impact of Proposition 13 can still be seen today. Butte County receives the 10th lowest property tax revenue per capita compared to other counties in the state. • Sales Tax—Over half of California counties have increased the sales tax rate in their jurisdiction via a local transaction and use tax. Butte County receives the 13th lowest sales tax per capita and does not have an increased sales tax (local transactions and use tax) rate. • Limited Other Taxes (Transient Occupancy Tax(hotel tax), Utilities Users Tax, etc.). Butte County has a relatively low Transient Occupancy Tax and very few short-term lodging facilities in the unincorporated area, as well as no Utility Users Tax. Tax Yield • Local economics and development affect the revenue received from local taxes. The relatively low property values in Butte County negatively impact the revenue received. Additionally the lack of commercial development in the unincorporated area limits sales tax yield. • Annexations and redevelopment efforts in some cities further eroded the property tax base in the County, though city residents utilize many countywide services. Local Services and Needs Vary by County • It can be helpful to compare Butte County to other similarly sized or neighboring counties but these comparisons are all limited, which make "apples to apples" comparisons challenging. Specifically, the area of a County that is in incorporated jurisdictions (cities), versus the amount that is unincorporated has an impact on County revenues and ' Legislative Analyst's Office, County Fiscal Distress—A Look at Butte County, December 1989;Property Taxes: Why Some Local Governments Get More Than Others, August 20, 1996;Why County Revenues Vary: State Laws and Local Conditions Affecting County Finance, May 7, 1998. 61 Page expenditure demand. Additionally the method of service provision in various counties impacts comparisons.As an example, fire services in counties is provided via a number of different structures including the county directly and special districts, including County Service Areas (CSAs). Finally, the local needs, preferences, and history of a community create unique circumstances in each county. For example, in Butte County, Lake Oroville and the Dam have created a unique set of circumstances that utilize County services without any offsetting revenue, and is not replicated in other counties. County Reserves&Contingencies The maintenance of a General Fund Reserve and General Fund Contingency helps to protect the fiscal solvency of the County. A prudent General Fund Reserve level is a critical measure of a government's ability to manage risk.The County currently has an $8 million General Fund Reserve and a $4.3 million General Fund Contingency (representing a $100,000 decrease from the Adopted Budget's $4.4 million Contingency), and it is likely that the County will have to use additional funding from the General Contingency before the fiscal year is through. Current levels do not meet the County's goal of a combined General Fund Reserve and General Fund Contingency of 10-15% of General Fund operating expenditures ($13.2 million to $19.8 million). The General Fund Reserve Policy is designed to ensure that the County will have funds readily available to address emergencies and manage cash flow. The General Fund Reserve Policy is based on the Government Finance Officers Association (GFOA) guidance and the completion of the GFOA Risk Analysis. The GFOA recommends, at a minimum,that general-purpose governments, regardless of size, maintain a year-end unrestricted fund balance in their General Fund of no less than two months (16.7%) of General Fund operating revenues or General Fund operating expenditures. Completion of the GFOA Risk Analysis Tool for Butte County confirmed that an unrestricted fund balance in excess of the GFOA minimum was not necessary. Emerging Challenges The County will continue to face new and evolving challenges over the next several years. Difficult decisions will need to be made, along with careful planning,to balance service level demands with available financial resources. Known challenges include: • Employee pension costs. Cal PERS reduced its interest earnings forecast for the foreseeable future, which significantly increases County costs. • In-Home Supportive Services (IHSS. The State has proposed shifting millions of dollars in increased costs to counties for this rapidly growing entitlement program. • Salary and benefit costs. While much needed, current labor agreements increase the County's salary and benefit costs. The County has begun to make adjustments to offset increasing costs and additional reductions may be necessary. The increasing State minimum wage over the coming years will provide additional upward pressure on the County's salary and benefit costs. 7 1 P a g e w Jail operating costs, |nFY 2019-20, onew section of the County Jail will open. Despite technological improvements that will increase staffing efficiencies, operating costs wiNUike�ly increase. • Butte County Fire (CAL FIRE) operating costs. Similar to, other County costs, contract costs are anticipated to continue to increase at a faster nate than the County's discretionary revenues. 0 Budget Trend Analysis. The budget trend analysis completed along with the FYZ01�7-18 Recommended Budget shows asteadily increasing gap between: revenues and expenditures resulting in a potential $4.7 million shortfall by FY 2021-22,The Budget Trend Analysis projects future budget trends based on current appropriations and revenues in the General Fund with anticipated cost/revenue growth over the analysis period. Since this analysis is based on many assumptions, even a miinor change in any of the assumiptions can make a significant difference to the budget trend. Fire Department Funding Figure 4 Fire Budget Revenue The Butte County Fire Department is $19.8 Million primarily funded with general purpose (discretionary) revenue, In o.scm,*mory Reve additionS`��� tog�nena| 9�r9ose ~~ revenue, the Fire Department budget includes grants fronnomtside sources, and funds reimbursed to the County when volunteer and career fire equipment and personnel provide response tVState and Restricted R°aue, federal emergencies. As shown in y,um*mm Figure 4, the FY2O17-1D L Recommended Budget with adjustments for the Fire Department is approximately $19.8 million, with approximately $18.6 million funded 6ugeneral purpose revenue and $12million funded byrestricted revenues. Tolive within theamnountof available discretionary revenue, the Department's budget included closing one fire station located within the city limits of Chico and sharing the cost of operating one fire station located in the State Responsibility Area with the State. Simiilar reductions were necessary in FY 2009-10, when the country experienced a deep recession. The County reduced the Fire Department budget bw $3.5million. |morder tomeet $Z.5million ofthe reduction, the Fire Department "browned out"two fire stations per day on an alternating basis throughout the [ounty. Eleven positions were eliminated and no funding was set aside for the Equipment Replacement Fund that year, requiring the Department to extend the life of vehicles by one year. The Fire Department then had to manage expenditures throughout the year to gain an additional $1 nni]|ioo in savings, at the Fine Chiefs discretion. In subsequent years, as part of the annual budget process, the County provided funding to add back positions and return to pre-2009 service levels. During some of the years, the Fire Department was able to obtain grant funding to provide a portion of the revenue necessary to maintain service levels. In FY 2017-18, costs for fire protection services increased beyond the amount of available discretionary resources, and the County had to reduce costs, as detailed previously. Given the reliance on discretionary revenue by all public safety functions, including the Butte County Fire Department, challenges will likely continue. Discretionary revenue is limited and over time, has not kept up with the growing cost of County operations. Moving forward, without some additional outside revenue,the Butte County Fire Department, similar to other County departments, is likely to see service reductions. [This space intentionally left blank.] 91Page OPTIONS FOR PROVIDING AND FUNDING FIRE PROTECTION SERVICES The majority of general purpose revenue comes from property and sales taxes. As noted earlier in the report, Butte County receives a lower than average share of property taxes when compared to other California counties. In addition, Butte County provides the majority of funding for fire protection services from discretionary revenues, unlike other counties that either do not provide fire protection services or utilize supplemental funding sources. Since local general purpose revenue is not sufficient to continue bearing the full cost of providing the level of services desired by residents, the County has two general options, a,s stated in the Executive Summary: • Address funding shortfalls during the annual budget process—The County can continue to fund fire protection services with discretionary resources and consider service reductions throughout County departments, including Eire, during budget deliberations in years when costs to meet service demands are greater than available financial resources. • Change governance andlor funding structure—The County can continue providing fire protection services with discretionary resources and implement a supplemental funding source to fill any funding gaps; or the County can establish a new governance structure for providing fire protection services, with funding through discretionary resources and a supplemental funding source. This report provides information for the second option - Change governance and/or funding structure. The Workshop provides an opportunity for the Board of Supervisors and the public to gain a better understanding of, and provide input on, the options. If the Board of Supervisors chooses, it may direct staff to begin the process on any given option or request further analysis on a number of options. The governance and funding options discussed in this report require different levels of approval prior to implementation. The levels can be summarized as follows: • Board of Supervisors approval (funding); • Board of Supervisors and voter approval (funding); • Board of Supervisors, Local Agency Formation Commission (LAFCo), and property owner/voter approval (governance and funding). Only funding options that may be used to fund existing service levels are discussed in this report. Options that only allow for funding above the existing level of service, and cannot supplement current levels of service, are not included. It its important to keep in mind that any option requiring voter approval or LAFCo approval will have up-front costs associated with it and will take time to implement. The upfront costs will have to be borne by either the County or the property owners served.The section that follows discusses various funding and governance options available under each level of approval. Each section includes examples of jurisdictions that use the option to provide and/or fund fire protection services. Exhibit A, attached, provides a matrix for the allowable combinations of funding and governance options.. FUNDING OPTIONS Board of Supervisors Approval 'Required Dees can provide a small revenue stream for things such as permits for new construction, special events, and operating hazardous functions. Fees must be approved by the Board of Supervisors (in the case of a special district, by the governing body) in a public hearing and cannot exceed the actual cost of providing the service. The County collects Fees for most services provided. Fire Suppression and Rescue Fees—These fees are charged, in many U.S. cities,to people responsible for fires, especially when negligence, code violations, or criminal activity are involved in causing the fire. Butte County already has such fees in place. Standby and Fireguard Ferias— Payments for having fire service or emergency medical service resources standby at public events or large private gatherings. Butte County already has such fees in place. Hazardous Materials Fees—Costs for hazardous material responses are billed and collected by the Butte County Interagency Hazardous Materials Team, a joint powers agreement (JPA) between all local jurisdictions within Butte County. The revenues collected remain with the JPA to offset costs. Hazardous Materials storage fees are collected by the Environmental Health Division of the Public Health Department in Butte County on behalf of the JPA. Emergency Medical Service Fees and Charges—Costs for paramedic services are billed and colllected just like other user fees. This standard charge for paramedic services may be stand- alone, or may be used in conjunction with Subscription Services (see below) and charged to individuals in households that do not subscribe to the service. Butte County does not provide paramedic services through the Eire Deportment. Services are provided through ambulance companies. Transport Fees—These fees are charged for transporting patients by ambulance to a medical facility and are only applicable if the Fire Department provides ambulance services. Butte County does not provide transport services(ambulance) and, therefore does not charge these types of fees. CSA: 37(Gridley/Bi'ggs.Ambulance Services)provides funding for ambulance services in the area served by Orchard Hospital Finns and Citations can be charged for things such as negligent fires, actions inconsistent with the law, and failure to comply with local codes. Butte County collects fines where appropriate and allowed. Subscription Services are often used in combination with fees for emergency medical services. Households that pay a fixed fee per year do not have to pay anything additional for emergency medical services or transport during that year. Those who do not "subscribe" for the service pay the full fee, if they utilize the service. Some jurisdictions don't charge the individual if there is an incident, but may still charge medical insurance or homeowners insurance to cover the costs of the response. Subscription services are primarily used by various fire departments in southern California cities. Butte County does not utilize subscription services. FUNI INN OPTIONS ,Board of Supervisors ,and Voter Approval Required Taxes and assessments can provide a funding mechanism for the gap between desired service levels and available financial resources, with no change in governance structure and continued contracting with CAL FIRE, Any tax or assessment may be repealed or reduced by a voter (tax) or property owner (assessment) initiative. The table, below, provides summary information. Additional detail on each option is provided further in the report. Option Voting Requirement Who Votes? Transactions and Use Tax - "Sales Majority of voters if general in Voters in the unincorporated area, if Tax" nature. tax only applicable in the unincorporated area. 2/3 of the voters if for specific services. Voters in applicable jurisdictions, if applied in unincorporated and incorporated area(s). Transient Occupancy Tax(TOT) Majority of voters if general in Only voters in the unincorporated nature. area. 2/3 of the voters if for specific services. Utility Users Tax Majority of voters if general in Only voters in the unincorporated nature. area. 2/3 of the voters if for specific Services. Parcel Tax("Special Property Tax") 2/3 of the voters Voters in anyjurisdiction that will be responsible for paying the parcel tax. Fire Suppression Assessment Majority of property owners Affected property owners. Vote is weighted according to proportional financial obligation of the affected property, Taxes include property and sales taxes and can be used to fund most local services. Charter counties, like Butte, may levy Any tax initiated by the County r-oust any tax not specifically prohibited. Taxes can be further divided be approved by a 4/5 vote of the between general taxes and special taxes. Board of Supervisors before being placed on a countywide ballot. General taxes refer to any tax imposed for general governmental purposes and require a majority approval of the voters. Special taxes refer to taxes imposed for specific purposes, such as public safety or library services, and require approval by a minimum of 2/3 of the voters voting in an election in order to be implemented, if initiated by the governing body of a local jurisdiction. General and special taxes can both be reduced or repealed through the initiative process. Any tax measure may be placed on the ballot by the Board of Supervisors adopting an ordinance or citizens through the initiative process. The estimated cost to place a measure on the ballot, according to the Clerk-Recorder/Registrar of Voters, is $50,000-$70,000. Transactions and Use Tax ("Sales Tax") (TUT) —The Revenue and Taxation Code gives According to the County's sales tax counties the authority to levy a transactions consultant, Hdl Companies, the County and use tax, sometimes, referred to as a sales might receive an additional $7 million or tax surcharge. Local TUT must be charged at a more in annual revenue from o 0.25 % (714 rate of 0.125%, or a multiple thereof, per dollar. cent) local sales tax surcharge imposed only The voting requirement depends on whether in the unincorporated area of the County. the local TUT is a general tax (majority vote) or special tax (2/3 vote). The current sales tax rate in Butte County, as well as the cities of Chico, Oroville, Biggs, and Gridley, is 7.25%, with no local TUT included. It represents the lowest sales tax rate possible in California. The Town of Paradise has a sales tax rate of 7.75% (a local TUT of 0.5% was approved by the voters in 2011,4 for a period of six years). California counties with local TUIT, have surcharges that range from 0.25%to 2%. Transactions and Use Tax Rates for all counties and cities in California are provided in Exhibit B. In summary, 32 of the 58 California counties have a TUT in place, while 26 counties (including Butte County) do not. The counties considered neighboring or similar to Butte County for comparative purposes have been highlighted in the Exhibit. Transient Occupancy Tax (TOT)—,Another type of sales tax is the Transient Occupancy Tax, where taxes An increased TOT rate of 10-72% ,are tailored to raise money from visitors. TOT is might bring approximotely$73,000- typeically applied to a narrow set of goods and services $20,000 in additional revenue each that are most likely to be associated with visitors, such year. as occupying rooms in a hotel, inn,tourist home or house, motel, or other lodging where occupancy is for 30 days or less. TOT may also be levied on spaces in RV parks and campgrounds. Butte County's current TOT rate is 6%, while most other jurisdictions have rates of 10-12%, and the County's current annual TOT revenue is approximately $20,0010. The County has very few short-term lodging facilities in the unincorporated area, which leads to the low amount of TOT the County collects.The voting requirement for a change in TOT depends on whether the TOT is a general tax (majority vote): or special tax (2/3 vote). 13 11 a g, c Utility User Tax—A utility user tax is a tax levied on utility bilk (i.e., electricity, gas, water, sewer, If industry predictions of 2-5% increases in phone, cable television) as a percentage of the utility rates hold true, what equated to $3.8 bill. Butte County had a general utility user tax in million in annual UUT in the 7990's might place from 1991 to 1996, at a rate of 5% for mean $5.4 million annually in 2077 with a residential users and 3% for non-residential users- 2% increase in utility rates or$9 million The tax during that period brought in a range of annually in 2077'at a 5% increase in utility $3 million to $3.8, million annually to pay for rates. public services within the unincorporated areas. The voting requirement for a utility tax, as with all local taxes, depends on whether the utility tax is a general tax (majority vote) or special tax (2/3 vote). Locally, the City of Chico and the City of Oroville have a 5% utility user tax in place. Examples of counties that have a utility user tax include Alameda County(6.5%6), Los Angele's County:( .5%), and Sacramento County✓(2.596). Parcel Tax—A parcel tax is levied as a flat fee on each parcel in a jurisdiction and may be used to fund An annual parcel tax of$25 in the specific projects or services provided by the County or unincorporated area would generate a district. Parcel taxes require approval of 2/3 of the approximately$7 million per year. voters affected by the parcel tax. Examples of local parcel taxes include: • Orchard Hospital Emergency Room Services - A $70 per year parcel tax paid for stand-by costs of providing emergency room services at Orchard Hospital, which ended in 2016 when, it did not receive sufficient votes to continue. • El Medio Fire Protection District- Parcel taxes approved in 1980 and 2008, as follows: * 1980— Established at $60.00 per single family dwelling, $125.00 per improved commercial property, and $300.00 per commercial property classified as having a significantly higher fire risk. * 2008—Added to the 1980 rates: $58 per single-family residential parcel; $58 per mobile home on a separated parcel; $58 per other residential dwellling unit; $200 per commercial/industrial parcel; $50 per acre for agricultural/vacant parcels; and $75 per institutional/miscellaneous parcel. The tax may be increased by 3 percent annually to adjust for inflation. Examples of jurisdictions with parcel taxes include the,Peninsula Fire Protection District(Plumas County), Foresthill Fire Protection District(Placer County), San Mateo County CSA No. I Police and Fire (San Mateo County), and Elkhorn Fire Protection District(Polo County), Fire Suppression Assessments are another option for funding local fire services and are administered like property taxes. These assessments factor in the size and type of property and also the benefits from having fire services available, such as proximity to a fire station and decreased insurance rates. The 14 111 a , c concept is tmhave acharge that is proportionate tothe benefits received bvthe owner, Fire suppression assessments are not considered taxes and require majority vote. These assessments can be cumbersome to undertake and administer, and require a detailed professional engineer's report to determine each property's share of the cost. Fire suppression assessments cannot be levied fVrvv|ldUand or watershed fire suppression on land located in a State Responsibility Area (SRA) that is devoted primarily to agricultural, timber, or livestock uses' per the Government [ode. Estimated costs of approximately $40,000 include costs for staff time and a consultant to provide the required Engineers Assessment Calculation Report. The Sacramento Metropoliton Fire District, County Service Area*7 —Shasta County, and the City of Santa Barbaro Fire Department are examples of agencies that utilizze fire suppression assessments to fund services, [This space intentionally left blank] 15 | 11o � � GOVERNANCE OPTIONS (Board of Supervisors, LAFCo, and Property Owner/Voter Approval Required Special Districts, for purposes of this report, represent options for governance structures. Many of the funding types described previously in the report may be paired with a special district to fund the services provided. When paired with a special district, allowable revenue sources will have to be approved by the district's governing body, as well as voters or property owners. As mentioned previously, Exhibit A contains a matrix that reflects the funding/'governance structure combinations that are available. Special districts share many of the same corporate powers as cities and counties. In some cases, a special district can provide services almost as well as a city or county government. A few types of districts are multipurpose in nature and have the legal ability to deliver a range of municipal services similar to cities and counties. Districts may offer representation and local control related to the services provided, whether through locally elected or appointed boards of directors. For the purpose of consolidating to reduce complexity or achieving greater cost efficiencies, some multipurpose districts can cluster almost any combination of municipal-type services under one organizational umbrella. The limitations to special districts include: 1) statutory restrictions on range of corporate powers and authorized activities; 2) limited regulatory powers; and 3) limited revenue-raising ability. Special districts must rely primarily on local revenue sources, including: a) property taxes (also known as ad volorern property taxes), b) special property-related assessments, and c) fees or user charges. In the case of the Butte County Fire department, the restricted revenues that currently support operations would remain available to a special district. Special districts are categorized as either independent or dependent, with virtually no difference in ability to provide a wide array of services. There is, however, a significant difference in the degree of local control, involvement, and who the governing body is accountable to, as described below. Independent Districts—Self-governed districts that operate under a locally elected board of directors. Decisions are made within the community served by the district. Dependent Districts— Board-governed districts that operate under the control of the County Board of Supervisors or a governing body appointed by the Board of Supervisors. Dependent districts are used primarily as a convenient way of localizing the costs of specific desired services to the area of benefit. There are three types of districts that lend themselves to, and are authorized for, providing fire protection services in California. They include County Service Areas (CSA), Community Services Districts (CSD), and Fire Protection Districts (FPD). Any special district may contract for services, including contracting with CAL FIRE. District Option District District Area Comments Governance County Service Area (CSA) Dependent May include contiguous and Butte County has a variety noncontiguous areas in the of CSAs providing services unincorporated area and all or such as street lighting,fire any part of a city. hydrants systems, drainage, and animal control. Community Services Independent May include contiguous and There are three(3) CSDs District(CSD) noncontiguous areas in the in Butte County: unincorporated area and all or • Berry Creek CSD any part of a city. May include • Buzztail CSD areas in more than one county. • Richardson Springs CSD Fire Protection District Dependent or May include contiguous and There is one FPD in Butte (FPD) independent noncontiguous areas in the County—EI Media Fire unincorporated area and all or Protection District. any part of a city. County Service Areas (CSA)—CSAs are dependent districts and were developed as a mechanism for counties to furnish municipal-type services to unincorporated areas beyond those uniformly provided countywide. The intent behind CSAs is that those citizens who directly benefit from the service bear the cost of the service, and the Board of Supervisors retains the decision-making authority as the directors of the CSA. The scope of CSAs is unmatched by any other dependent district. Butte County has numerous CSAs that provide a variety of services. CSA 164 (Animal Control) is an example of a CSA that covers all of the unincorporated area. The County and the CSA each pay a portion of the County's costs for providing a level of animal control services similar to those in more urban areas. Key aspects of CSAs include: • Any area within a city or town, contiguous or noncontiguous, may be included in a CSA, if the legislative body of the city or town approves establishing the CSA by resolution. • Land primarily used for commercial production of agricultural products, timber, or livestock may only be included in a CSA if the land is contiguous to other land in the CSA and only if the land will benefit from the services and facilities that the CSA provides. • Under the Government Code, LAFCo may not approve a proposal to form a CSA if LAFCo determines there will be insufficient revenues to carry out the CSA's purpose. LAFCo may only approve such a proposal if the approval is conditioned on concurrent approval by the applicable voters of special taxes, benefit assessments, or property-based fees or charges that will generate the necessary revenue. If the voters do not approve the special taxes, assessments, or property-based fees or charges, the CSA may not be formed. 17 Page • If CSA is formed for fire protection services,the Board mfSupervisors vVuuKd retain all po|icyamdbudgetary dedsiom-mak[ng. • The Board may form zones within a CSA when it determines that it is in:, the public interest to provide different sem/ices or levels of services, provide different facilities, or raise additional revenues within aspecific area ofthe CSA. " The Board may establish fees for services, and levy special taxes (2/3 vote) and assessments (majority vote) if approved by voters in the disthct, Some of the counties that utilize County Service Areas in portions of the unincorporated areas to provide fire protection services,include Son Mateo,'Shasta,'and`Sutte,r. Community Services Districts (CS0) —CSDs have more fiscal discretion than any other type of independent district. [SDsare considered independent districts, unless there are less than 100 registered voters within the district boundaries, which would not apply in this case. Key aspects ofCSDsinclude: m Any area whether incorporated or unincorporated, whether contiguous or not, whether in one ormore counties, may beincluded ima CSD, ifthe legislative body nft�he 'uhndictimm approves establishing the CSD byresolution. w Under the Government Code, LAFCo may not approve a proposal to form a CSD if LAFCo determines there will be insufficient revenues to carry out the [SD's purpose. LAFCO may only approve such a proposal if the approval is conditioned on concurrent approval by the applicable voters ofspecial taxes, benefit assessments, ovproperty-based fees orcharges that will generate the necessary revenue. |fthe voters donot approve the special taxes, assessments, orfees orcharges, the CSD may not be formed. • A CSD may provide fire protection, rescue, hazardous material emergency responise, and ambulance services in the same manner as, a fine protection district. m The district board may form zones within a CSD when it determines that it is in the public interest 10provide different services mrlevels ofservices, provide different facilities, or raise additional revenues within aspecific area ofthe CSD. m Once formed, CSDs may levy special taxes (2/3 vote) and assessments (majority vote) if approved by voters in the district, and establish fees for sen/ices. �Within the following counties, Community,Services Districts are utilized in portions of the � unt.ncorporated area: Plumas, Yuba, San Luis Obispo, and Sacramento. Fire Protection Districts (FPD) — Fire Protection Districts may be dependent or independent, though most are independent. Fire Protection Districts primarily provide for structural fire protection, but may also provide emergency medical services such as paramedics and ambulance. They may also be used to acquire and construct facilities for water development, storage, and 18 11 distribution "where necessary and convenient for the purpose of providing fire protection." E| Medio Fire Protection District is the only FPD currently within the boundaries of Butte County. Key aspects ofFPDsinclude: • Any area within a city or town, contiguous or noncontiguous, may be included in a FPD, if the legislative body ofthe city ortown approves establishing the FP[) by resolution. • The district board may be elected or appointed by the Board of Supervisors and any city councils imwhich the district is located. n |fappointed, the Board mJSupervisors and the city coundKs) appoint directors according to the proportionate share ofpopulation within the district but the Board of Supervisors and each city council rnustappoint atleast one director. The Board ofDirectors may have amaximum of11 members. o The Board of Supervisors may appoint itself asthe district board, ifthe city coumci|(s) give(s) consent byresolution. m Under the Government Code, LAFCo may not approve a proposal to form a FPD if LAFCo determines there will be insufficient revenues to carry out the FPD's purpose. LAFCo may only approve such a proposail if the approval is conditioned on concurrent approval by the applicable voters of special taxes, benefit assessments, or property-based fees or charges that will generate the necessary revenue. |fthe voters dunot approve the special taxes, assessments, mrfees orcharg�es, the FPD may not beformed. * Once formed, the district board may levy special taxes (2/3 vote) and:, assessments (m jo�rltyvnte) if approved by the voters in, the district, and establish fees. The district board may charge residents or taxpayers of the district fees that are less than fees for services charged tunon-residents ornon-taxpayers ofthe district. • Lands classified as comrnerciail forest/timbered lands in the State Responsibility Area (SRA), whether privately-ovvned or government-owned and as determined by the California Department nfForestry and Fire Protection, may not be included in a FPD. If lands in the SRA are included, the State retains the responsibility for fire suppression and prevention ontimbered, brush, and grass-covered lands. The FPD isonly responsible for fire suppression and prevention for structures. • The district board may form zones within a FPD when it determines that it is in the public interest to provide different services or levels of services, provide different facilities, or raise additional revenues within a, specific area nfthe FPD. of he Examples of counties that have independent and depende,nt fire protection districts in portions _.�~. unincorporatedvreas include Plumos, Shosto, Nevada, Yuba, Lassen, and Glenn. 19 | 1) uc In general, special districts are initiated by petition of property owners or resolution of the legislative body of the participating local agency (county, city, and/or town). The formation process is complex, takes time, and may have significant upfront costs. LAFCo provided an estimate of$15,000-$20,000 for initial formation costs of a special district such as a CSD or FPD, though the cost could be higher if LAFCo requires additional studies regarding the district formation. Formation of a CSA, per LAFCo, may be less costly. Most district formations take a minimum of one year to complete, depending upon complexity. If funding is a requirement for the district to be formed, and funding is in the form of a tax that must go on a ballot at a regularly scheduled election, the timeframe may be longer An example of the formation process for special districts is provided in Exhibit C. In summary,the process is generally as follows: ❑ Initiation by property owner petition or County/City resolution. ❑ Application and related/required documents submitted to LAFCo. ❑ LAFCo determines if there is sufficient information for hearing. hJ If insufficient information, requests additional information or studies. 0 When information is sufficient and if LAFCo approves formation, LAFCo holds a protest hearing. If more than 50% protest; no further action and district cannot be reinitiated for at least one year. If less than 50% protest, LAFCo approves formation without election or approves with conditions (i.e., funding) subject to an election. Q If approved subject to an election and with condition of funding that requires property owner approval (assessment), County/City holds an election. If over 50%vote for funding, district may be formed. If less than 50%vote for funding, district may not be formed. Q If approved subject to an election and with condition of funding that requires voter approval (taxes), tax measure must go on a ballot with the vote requirements determined by whether the tax is a general or special tax. 20 Pale HOW DO OTHER COUNTIES PROVIDE AND FUND FIRE PROTECTION SERVICES? Provision of Services Fifteen (15) counties were surveyed for this report, including the six counties immediately adjacent to Butte County (Colusa, Glenn, Plumas, Sutter,Tehama, and Yuba), and nine other counties that are considered similar to Butte (El Dorado, Merced, Napa, 'placer, Santa Cruz, Shasta, Sonoma, Stanislaus, and Yolo). Although the survey found that there is little consistency in how fire protection services are provided and funded, the fifteen counties can generally be grouped into three categories: 1) those that provide no fire protection services, 2) those that provide some fire protection services, and 3) those that provide all fire protection services to unincorporated areas. Exhibit D, attached to this report, provides a summary of each county. No Fire Protective Services Nine (J) of the counties provide no fire protection services in the unincorporated area of the county. In these counties, fire protection is provided exclusively through dependent and independent fire protection districts, County Service Areas, and dependent and independent community services districts. In many of the community services districts, fire prevention is one of many services provided, along with parks and recreation, water, lighting, etc. Some Fire Protective Services Four (4) of the counties provide some level of fire protection services in the unincorporated area of the county, typically in the areas that are not otherwise covered by a fire or other special district. All four (4) provide services through a cooperative agreement with CAL FIRE. In conjunction with county-provided fire services,there exists a combination of dependent and independent fire districts, and dependent County Services Areas. All Fire Protection Services to Unincorporated Areas Two (2) of the counties provide fire services to the entire unincorporated area of the county. Both of them do so through a cooperative agreement with CAL FIRE. Funding The methods for funding fire services in counties are spread among all of the options available. Most fire protection agencies receive some portion of the county's property tax revenue.The percentage allocated to each district, area, or agency ranges from a minor revenue source in their budget to a substantial source of operating funds. The amount of property tax each district, area, or agency receives depends on several factors, including the local governing body's funding philosophies prior to the passage of Proposition 13; when the district, area, or agency was created; relative growth of population countywide; merger of districts; and arrangements with other governmental units. 21 111 a c Many fire protection agencies have received voter approval for special assessments.The level of special assessments is diverse, and is based upon the specific community's desired service level. In addition to special assessments, some fire protection agencies have service and funding agreements with other governmental jurisdictions, including counties, cities, tribes, and other special districts. In some of these agreements the county contributes to fire districts to enhance services, and in others the reverse is the case, where the other agencies provide funding to county fire departments to enhance services. Districts Several of the surveyed counties provide fire protection services through special districts. The research included information on the timing of district formation, which is tied to whether or not a special district receives a portion of property taxes. Of the 100 districts surveyed, 82 were formed prior to the passage of Proposition 13. In fact, the majority of existing districts were formed prior to 1950. Of the 18 that were created subsequent to Proposition 13, most were due to district consolidations and not actually establishing a district where one did not previously exist. [This space intentionally left blank.] 221Pagc CONCLUSION There are a variety of options for governance structures and funding of fire protection services. This report outlines the most commonly used methods found in California jurisdictions, but does not explore any particular option in depth. The conclusion from staff research is that there is no standard way of approaching the provision or funding of fire protection services, nor is there a single best way. Rather, each approach has its own set of benefits and constraints, which are measured by the local governing body when determining which one best fits local circumstances. The diversity of models used throughout other counties demonstrates that structural and funding options can be successfully combined in any number of ways. Exhibit A provides a matrix reflecting the various ways funding options and governance options may be combined. It should also be noted that the cost, complexity; and time required to create any alternative funding and/or governance structure vary by option. As stated previously in this report, the Board of Supervisors is now faced with two major options to address the growing structural gap between the cost of desired levels of fire protection services and available discretionary resources: 1) continue funding fire protection services within available discretionary resources, reducing County services as necessary during the annual budget process or 2) further explore or implement a specific funding and/or governance options. If the Board of Supervisors chooses to continue funding fire protection services with available discretionary resources, reducing County services as necessary during the annual budget process, then no further work will need to be done on this matter, If the Board wants to explore other options, the questions that must be considered are:. 1) Goes the Board prefer to retain policy-making authority or have policy decisions made by either a Board-appointed board of directors or an independently elected board of directors? 2) What funding options would the Board like to explore further? If the Board of Supervisors chooses to look at other options, then approval of a supplemental revenue source by voters or property owners will be necessary, no matter what governance structure is put in place. ACTION REQUESTED 1. Take no action and funding shortfalls will be addressed during the budget process each year, or 2. Direct staff to return to the Board of Supervisors with specific formation details and estimated costs for one or more funding and/or governance options; or S'. Direct staff to begin the process on a specific governance and/or funding structure; or 4. Provide other direction to staff on this matter.. 231I' it e a m W m 185 ZE 6a � tL oma yy nu q � 4mJ 0 W m m m bcl v c z> c g e "°' 0 0 _0 m c m " L0: 0 ° . c p w ^0 © � � Mami ci !;, 0'CL a a xT w d, . �t �u +/l�� // / 1 / / J .1 �G,i, X x x `. S^� C .LD y a u m u a m _ E ID w r a E c,a x W m—' w°r o' cn w ui trr m c c CL EF as 4C 4 X a X01 a ua k 'as < di t3 c "K'' w Z E LL 'if w m. (h !^ 1- k CSL cc GCI'E cb., -, BOE-95(FRONT)REV.11(7.17) ExEuBrr B STATE OF CALIFORNIA SALES AND USE TAX RATES BOARD OF EQUALIZATION California Sales and Use Tax Rates by County and City* Operative July 1, 2017(includes state, county, local, and district taxes) ALAMEDA CO.9.25% KERN CO.7.25% MONO CO.7.,25% SAN BERNARDINO CO,7,75% City of Albany 9.75% City of Arvin 8.25% Town of Mammoth Lakes 7.75% City of Montclair 8.00% City of Hayward 9.75% City of Delano 8.25% MONTEREY CO.7.75% City of San Bernardino 8.00% City of Newark 9.75% City of Ridgecrest 8,25% City of Carmel-by-the-Sea 8.75% Town of Yucca Valley 8.75% City of San Leandro 9.75% City of'Wesco 8.25% City of Del Rey Oaks 9.25% SAN DIEGO CO.7.75% City of Union City 9.75% KINGS CO.7.25% City of Gonzales,8.25% City of Chula Vista 8.25% ALPINE CO.7.25% LAKE CO.7.25% City of Greenfield 9.50% City of Del Mar 8.75% AMADOR CO.7.75% City of Clearlake 8.75%, City of King City 8.25% City of El Cajon 8.25% City of Lakeport 8.75% City of Marina 8.751° City of La Mesa 8.50% BUTTE CO.7.25% City of Monterey 8.75% City of National City 8.75% Town of Paradise 7.75% LASSEN CO.7.25% City of Pacific Grove 8.75% City of Vista 8.25% CALAVERAS CO.7.25% LOS ANGELES CO.9.25% City of Salinas 9.25% SAN FRANCISCO CO.8.50% City of Avalon 9.75% City of Sand City 8,75% COLUSA CO.7.25% City of Commerce 9.75% City of Seaside 8.75% SAN JOAQUIN CO.7.75% City of Williams 7.75% City of Compton 10.25% City of Soledad 8.751° City of Lathrop 8,75% ca 8.2 % CONTRA COSTA CO.8.25% City of Culver City 9.75% NAPA CO.7.75% City of Manteca City of Stockton 9.00% City of Antioch 8.75% City of Downey 9.75%, City of St. Helena 8.25% City of Tracy 8.25% City of Concord 8.75% City of El Monte 9.75% NEVADA CO.7.50% City of El Cerrito 9,75% City of Inglewood 9.75% % SAN LUIS OBISPO CO.7.25 City of Grass Valley 8.00 % City of Hercules 8.75% City of La Mirada 10.25% City of Nevada City 815% City of Arroyo Grande 7.75% City of Martinez 8.75% City of Long Beach 10.25% Town of Truckee 8.25% City of Atascadero, 7,75% Town of Moraga 9.25% City of Lynwood 10.25% City of Grover Beach 7.75% City of Orinda 8.75% City of Pico Rivera 10.25% ORANGE CO.7.75% City of Morro Bay 7.75% City of Pinole 9.25% City of San Fernando 9,75% City of Fountain Valley 8.75% City of Paso Robles 7.75% City of Pittsburg 8.75% City of Santa Monica 10.25% City of La Habra 8.25% City of Pismo Beach 7.75% City of Pleasant Hill 8.75% City of So. El Monte 9.75% City of La Palma 8.75% City of San Luis Obispo 7.75% City of Richmond 9.25% City of South Gate 10.250/D City of Stanton 8.75% SAN MATEO CO.8.75% City of San Pablo 9.00% MADERA CO.7.75% City of Westminster 8.75% City of Belmont 9.25% DEL NORTE CO.7.50% City of Madera 8.25% PLACER CO.7.25% City of East Palo Alto 9.25% EL DORADO CO.7.25% MARIN CO.8.25% Town of Loomis 7.50% City of San Mateo 9.00% City of Placerville 8.25%® Town of Corte Madera 8.75% PLUMAS CO.7.25% City of So. San Francisco 9.25% City of So. Lake Tahoe 7.75% Town of Fairfax 9.00% RIVERSIDE CO.7.75% SANTA BARBARA' CO.7.75% FRESNO CO.7.975% City of Larkspur 8.75% City of Cathedral City 8.75% City of Guadalupe 8.00% City of Huron 8.975% City of Novato 8.50% City of Coachella 8.75% City of Santa Maria 8.00% City of Reedley 8.475% Town of San Anselmo 8.751° City of Hemet 8.75%, SANTA CLARA CO.9.00% City of Sanger 8.725% City of San Rafael 9.00% City of Indio 8.75% City of Campbell 9.25% City of Selma 8.475% City of Sausalito 8.75% City of La Quinta 8.75% City of San Jose 9.25% GLENN CO.7.25% MARIPOSA CO.7.75% City of Menifee 8.75% SANTA CRUZ CO.8.50% City of Orland 7.75% MENDOCINO CO.7.375% City of Palm Springs 8.75% City of Capitola 9.00% City of Fort Bragg 8.375% City of Riverside 8.75% City of Santa Cruz 9.00% HUMBOLDT CO.7.75%° City of Point Arena 7.875% City of Temecula 8.75% City of Scotts Valley 9.00% City of Arcata 8.50% City of Ukiah 8.375% SACRAMENTO CO.7.75% City of Watsonville 9.251° City of Eureka 8.50% City of Willits 7,875% City of Gait 8.25% City of Fortuna 8.50% City of Isleton 8.75% SHASTA CO.7.25% City of Rio Dell 8.75% MERCED CO.7.75% City of Rancho Cordova 8.25% City of Anderson 7.75% City of Trinidad 8.50% City of Atwater 8.25% City of Sacramento 8.25% SIERRA CO.7.25% IMPERIAL CO,Z75% City of Gustine 8.25% City of Calexico 8.25% City of Los Banos 8,25% SAN BENITO CO.7.26% SISKIYOU CO.7.25% City of El Centro 8.25% City of Merced 8.25% City of Hollister 8.25% City of Dunsmuir 7.75% MODOC CO.7.25% City of San Juan Bautista 8.00% City of Mount Shasta 7,50% INYO CO.7.75% City of Weed 7.50% City of Yreka 7.75% B-1 I Page EXHIBITB BOE-95(BACK)REV 11(7-17) SALES AND USE TAX RATES SOLANO CO.7.375% City of Benicia 8.375% City of Fairfield 8.375% City of Rio Vista 8,125% City of Suisun City 8,375% City of Vacaville 7.625% City of Vallejo 8.375% SONOMA CO.8.125% City of Cotati 9.125% City of Healdsburg 8.625% City of Rohnert Park 8.625% City of Santa Rosa 8.625% City of Sebastopol 8.875% City of Sonoma 8.625% STANISLAUS 00.7.87501 City of Ceres 8.375% City of Oakdale 8.375% SUTTER CO.7.25% TEHAMA CO.7.25% City of Corning 7.75% City of Red Bluff 7.50% TRINITY CO.7.25% TULARE CO.7.75% City of Dinuba 8.50% City of Farmersville 8.25% City of Porterville 8.25% City of Tulare 8.25% City of Visafla 8.50% TUOLUMNE CO.7.25,% City of Sonora 7.750x`0 VENTURA CO.7.25% City of Oxnard 7.75% City of Port Hueneme 7.75% City of Santa Paula 8.25% City of Ventura 7.754x0 YOLO CO.7.25% City of Davis 8.25% City of W. Sacramento 8.00% City of Woodland 8,00% YUBA CO.7.25% City of Marysville 8.25% City of Wheatland 7.75% *(For more details,refer to wwwboe.ca.gov1sutax1pam7l.htm.) Please note.Some communities located within a county or a city may not be listed,If you are in doubt about the correct rate or if you cannot find a community,please call the BOE toll-free number at 1-800-400-7115(TTY:711),or call the local California State Board of Equalization office nearest you for assistance. B-2 I Page EXHIBIT C District Formation Initiation (By petition or resolution—petition requirements are determined by the principal act under which the district is formed) (GC§56100,§56554, §56860) LAFCO meeting/hearing LAFCO LAFCO approval disapproval Conducting authority hearing Proceedings terminated (GC§56100,57002) (One year wait to reapply unless Protest Hearin waived by LAFCO) Conducted by LAF (GC§56884) Approve the formation Approve the formation Terminate proceedings if without an election subject to an election majority protest is filed (GC§57007) (GC§57007) (GC§57078) 17ake "can ingent �' � voter appro al of funding iw Majority voter approval- Less than majority voter approval - order formation terminate proceedings (GC§57176) (GC§57179) County holds election if assessment . Ballot measure required if tax. C-1 I Page SECTION SIX:Appendix 206 Exhibit D Individual County Detail Detail by County: Adjacent Counties' Colusa County The County does not provide fire protection services. These services are provided by six (6) independent fire districts throughout unincorporated Colusa County. One of these districts is a Joint Powers Authority (JPA) between the City of Williams and the 'Williams Fire District. This JPA is financed by funds from the City of Williams and Fire District revenues.The other five (5) districts are funded exclusively from fire district revenues,which include a small portion of pre-Proposition 13 ad valorem property tax, augmented by district special assessments. The County of Colusa has no connection to the districts and provides no contributions. Staffing in the districts is a combination of career and volunteer firefighters. Glenn County The County does not provide fire protection services. These services are provided by twelve (12) independent fire districts within unincorporated Glenn County. These districts each produce their own operation and maintenance resources through fire district assessments,which include a small portion of ad valorem property tax that was in place prior to Proposition 13, augmented by district special assessments. Some of the districts have successfully returned to voters to increase special assessment revenues subsequent to the requirements of Proposition 218, the constitutional amendment that required local government to have a vote of the affected property owners for any proposed new or increased assessment before it could be levied. The majority of firefighters are volunteer, with enough career firefighters to maintain continuity. Plumas County The County does not provide fire protection services. These services are provided by twenty (20) independent fire districts and community services districts within unincorporated Plumas County. Staffing is mostly volunteer, with two (2) districts having full time staff. All of the independent fire districts receive a portion of ad valorem property tax which was in place prior to the passage of Proposition 13, and some of them have added special assessments as well. The community services district is funded exclusively from special assessments. Sutter County The County provides fire protection services for some of the unincorporated areas of the County. There are five (5)fire districts within the unincorporated area of the County; three (3) of them are Board-dependent County Service Areas (CSAs) and two (2) are independent districts that have their own ,governing, boards. The County actively manages three (3) of the CSAs, which has six (6) fire stations. One (1) of these stations also provides fire protection services to the City of Live Oak under contract. Other than the funds from Live Oak and some impact fees,the districts are all funded through CSA assessment revenue.All but one of the CSAs are funded exclusively through a portion of the ad valorem property tax that was in place prior to the passage of Proposition 13. The largest CSA also has special assessment funding, in addition to the ad valorem tax. Exhibit D Individual County Detail Tehama County The County provides fire protection services for most of its unincorporated area through a cooperative agreement with [AL HIRE. Fire services are funded exclusively through ad valorem property tax that was in place prior to the passage of Proposition 13. In addition, there is one (1) independent fire protection district that spans into Glenn County that is funded by special assessments. Yuba: County The County does not provide fire protection services, These serwoes are provided by eleven /11\ independent fire protection orcommunity services districts within unincorporated Yuba County. These districts fully fund operations through a comblination of special assessments and a portion of the ad valorem property tax that was in place prior to the passage of Proposition 13. Most districts receive both, but some receive only one, either ad valorem property tax or special assessments, Detail bSimilar CmmE| Dorado County The County does not provide fire protection sen/ices. These services are provided by eight /8\ independent fire districts, two independent community services districts, an independent water district, and one incorporated city (City of South Lake Tahoe). [AL F|RE provides services within the State Responsibility Area. Community services districts provide multiple services in addition to fire protection, but the water district only provides fire protection. All are funded through ed valorem property taxes, some of which were in place prior to the passage of Proposition 13, with some ofthe districts having other special assessments aawell. Staffing isprovided through amix of volunteer and career firefighters. One of these districts contracts with CAL FIRE. Merced County The County provides fire protection services for its unincorporated area through a cooperative agreement with CAL ARE. The $70 million, four-year (FY 2017-18 to FY 2020-21) cooperative agreement, provides for personnel and management of twenty (20) stations. Staffing isprimarily career with additionai support of paid call firefighters (PCF).The County provides some staffingfor the fire department, including fire prevention inspectors, heavy equipment mechanics, and three /3\ administrative support positions, P[Fsnre hired as extra help, Fire protection services, aswell County-provided staffing are funded entirely by the separate Fire Fund through a dedicated portion of ad valorem property taxes that was in place priorto Proposition 13, There isno General Fund contribution for the provision of fire protection services and associated support personnel, Napa, County The County provides fire protection services for the unincorporated areas of the county through a cooperative agreement with [AL FIRE. The $9.9 million cooperative agreement provides for personnel and management to operate six (6) stations. In addition, as, part of the agreement, CAL D~ZIyu �ilu Exhibit D Individual County Detail FIRE administers nine (9) volunteer fire stations. The six (6) career stations are funded by the County Fire Fund,and are staffed mostly with career and some volunteer personnel.The volunteer stations have no dedicated funding source, and rely solely on fundraising and support from the Fire Fund. One career station is a cooperative effort between the County,the Town ofYountville, and the California Department of Veterans Affairs and provides fire protection to the Town and the Veterans Home. Placer County The County provides fire protection services for the unincorporated areas through a variety of methods.There are seventeen (17)special fire districts throughout unincorporated Placer County. For those areas that are not covered by a special district, the County has a $12.1 million cooperative agreement with CAL FIRE, including eight (8) volunteer fire companies. This agreement is funded by a zone of benefit assessment, a portion of pre-Proposition 13 ad valorem property taxes, plus$1.,098,000 from the County General Fund. For the areas covered by a special district,the governance and funding is a mixture of dependent and independent fire districts, and CSAs with various zones of benefits. Some areas are fully funded by ad valorem property tax in place prior to the passage of Proposition 13,with a wide range of values, and others have a mixture of ad valorem property taxes plus district assessments. Additionally, one (1) community services district was created in 2012 with funding from a local Indian Tribe to provide fire protection services in an area that includes a casino. Santa Cruz County The County provides fire protection services for its unincorporated areas through a variety of methods. There are ten (10) fire protection districts throughout unincorporated Santa Cruz County. For those areas that are not covered by a special district,the county has two (2) CSAs that fund a $4.5 million cooperative agreement with CAL FIRE to operate a mix of career and volunteer fire stations throughout the County. The CSAs are funded by a combination of assessments, ad valorem property taxes, and a Fire Fund,which is a type of reserve used to maintain service levels. The Fire Fund is comprised of a portion of the Fire Department's undesignated year-end General Fund fund balance each year. Shasta County The County provides fire protection services for the unincorporated areas that are not otherwise served by independent fire districts through a County Service Area (CSA). The CSA is funded by a combination of annual special assessments in the amount of $1.9 million and an annual $2.46 million augmentation from the General Fund. The County has a cooperative agreement with CAL FIRE to operate and administer the Fire Department with Chief Officers, Emergency Command Center, Training, Fire Prevention, two (2) career and eighteen (18) county volunteer fire stations within the CSA. Sonoma County The County provides fire protection services for the incorporated areas through a mix of agencies, including five municipal departments, 20 independent special districts, and one County Service Area (CSA#40) governed by the Board of Supervisors. Within the area served by the D-3IPae Exhibit D Individual County Detail CSA#40, emergency response service is provided under contract with 12 volunteer fire companies or through contracts with independent districts or municipal departments. Some areas receive additional support based on Amador contracts with CAL FIRE. The County, through CSA#40, provides training, equipment, and maintenance to the volunteer fire companies that it contracts with, as well as providing limited funding to these companies. Ad valorem property taxes in place prior to the passage of Proposition 13 provide the primary funding for these services in both CSA#40 and the special districts. In three areas of CSA#40 this is supplemented by a special assessment through community facility districts, and several of the special districts have passed parcel taxes that support fire services. The County has been engaged in a multi-year Fire Services Project, which is designed to ensure a more efficient, effective, and sustainable fire service throughout the County. The projects report identified a long-term goal of a single fire agency providing service throughout unincorporated Sonoma County, but recognized that this would only be achieved through a gradual, evolutionary process. As an interim step, a countywide Fire Services Advisory Council was created to provide advice to the Board of Supervisors on fire issues, and additional funding has been directed by the Board of Supervisors to ensure that service reductions do not occur and to encourage collaboration and, where appropriate, consolidation. The source of this funding is a share of growth of Proposition 172 public safety funds, and a share of transient occupancy tax. Also coming out of this process, the County has issued a Request for Proposals to determine if one or more other agencies may be able to provide support for the volunteer fire companies and services throughout CSA#40 more efficiently. Stanislaus County The County does not provide fire protection services.These services are provided by independent fire districts within unincorporated Stanislaus County.All districts have their own governing boards and revenue sources made up of pre-Proposition 13 ad valorem property taxes and/or fire protection district taxes. Two (2) districts contract with cities to provide services to incorporated areas. Yolo County The County provides fire protection services through dependent fire districts for the unincorporated areas that do not otherwise have an independent fire protection district. Of the fifteen (15) fire districts, nine (9) are independent and six(6) are dependent. Other than adopting the dependent fire districts' budgets, the county has no other involvement in fire protection. In addition to the fifteen (15)fire protection districts,the Yocha behe Wintun Nation (Rumsey Indian Rancheria) has its own fire department, and has entered into mutual aid agreements with other fire departments. D-41F' age