Title
Emergency Medical Services, a division of the Chief Administrative Office, recommending the Board adopt and authorize the Chair to sign Resolution 081-2025 which finds that the repayment of the Fiscal Year 2024-25 General Fund contribution of $750,000 in Discretionary Transient Occupancy Tax (DTOT) to County Service Area 3 (CSA 3) would create economic hardship for the residents of CSA 3 and waives the repayment in whole (4/5 vote required).
FUNDING: General Fund - DTOT.
Body
DISCUSSION / BACKGROUND
County Service Area No. 3 was established on January 21, 1963, for the purpose of providing extended services, namely mosquito abatement, via Resolution No. 9-63. On August 10, 1982, the Board of Supervisors amended the authority of CSA 3, through Resolution No. 210-82, to include extended ambulance services to be provided within the unincorporated area of CSA 3. On April 28, 1987, the Board of Supervisors approved Resolution 132-87, extending ambulance services to the incorporated area of CSA 3.
CSA 3 ambulance services are funded by a special tax, benefit assessment, and ambulance fees; however, the CSA is currently operating at a deficit and requires additional funding to support ambulance services. The ambulance rate schedule for CSA 3 was last reviewed and updated in 2022, increasing ambulance fees to within the 75th percentile of comparison agencies, including base rates for residents and non-residents (Legistar file 22-0380). In addition, the rates have been increased each fiscal year by the increase in the Consumer Price Index (CPI). To address the ongoing deficit, County staff are currently reviewing the possibility of an additional increase to ambulance fees and continue to assess the ambulance billing system to find process improvements and increase revenue.
On June 11, 2024, as part of the Fiscal Year 2024-25 (FY24-25) budget, the Board approved a General Fund Contribution of $750,000 in Discretionary Transient Occupancy Tax (DTOT) to CSA 3 to support ambulance services, which are impacted by tourism in the Tahoe Basin (Legistar file 24-0997).
California Government Code Section 25214.4 authorizes the County’s Board of Supervisors to authorize a loan of funds to a county service area (CSA) for any lawful expenses of the CSA. This Government code authorizes the Board of Supervisors, by a four-fifths vote, to waive the repayment of a loan to a CSA, in whole or in part, if the Board of Supervisors finds that the repayment of the loan may result in an economic or fiscal hardship to the property owners or residents of the CSA.
To comply with said Government Code, the County is treating the FY24-25 DTOT Contribution as a loan to CSA 3. To repay the loan, CSA 3 will require raising additional revenue from CSA 3 residents, constituting a fiscal hardship. If the Board of Supervisors approve the Resolution, the repayment of the FY24-25 $750,000 General Fund loan to CSA 3 will be waived in full.
ALTERNATIVES
If the Board of Supervisors does not waive the repayment of the General Fund loan, CSA 3 does not have sufficient funding to repay the loan of $750,000 within FY24-25. Any repayment of the loan would result in an economic or fiscal hardship for CSA 3. Failure to approve the waiver of the loan may result in the County being out of compliance with Government Code Section 25214.4.
PRIOR BOARD ACTION
Legistar file 22-0380, June 21, 2022 - Resolution 089-2022 approved, increasing CSA 3 ambulance rates
Legistar file 24-0997, June 11, 2024 - FY24-25 Recommended Budget approved
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel has reviewed the Resolution.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The $750,000 DTOT contribution to CSA 3 was budgeted as a General Fund expense and transferred to CSA 3 in the FY 2024-25 Budget.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk of the Board to obtain the signature of the Chair on the attached Resolution and provide a certified copy to CAO - Central Fiscal, Attention: Serena Lemmons.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Sue Hennike, Assistant Chief Administrative Officer