1 / 12

Alternative EMS Tax Structure

Alternative EMS Tax Structure. “No Out-of-Pocket” for District Residents. Presented to the Coast Life Support District Board of Directors September 19, 2011. Is This Our Community?. Why does our Community have a publicly-funded emergency response system that:

Download Presentation

Alternative EMS Tax Structure

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Alternative EMS Tax Structure “No Out-of-Pocket” for District Residents Presented to the Coast Life Support District Board of Directors September 19, 2011

  2. Is This Our Community? Why does our Community have a publicly-funded emergency response system that: • Cares for its members in their darkest hour, and then hands them a bill for $4000? • Can only survive if at least 400 of its members seriously injure themselves or fall ill every year?

  3. Outline • Background • Alternative EMS Tax Structure • Tax Change Impact to Residents • Benefits of Alternative Structure • First Year Scenario • Recommendation

  4. Background • Ambulance rates are beyond means of most residents • FY11 average transport bill $3749 • Most residents who have insurance either have deductibles >$5000 or 20% co-pay • CLSD Board has no flexibility in budgeting or taxes • Operating at “bare bones” quality ALS/BLS service • Tax rates are pegged at maximum authorized • Cannot lower without reducing services • Cannot raise to increase services if needed • Parcel tax categories are complicated and hard on business • Business do not benefit more from higher tax rate • Ambulance billings go to patient, not businesses

  5. Alternative EMS Tax Structure • No “Out of Pocket” cost to District taxpayers and residents • Similar to REACH or CALSTAR memberships • District still bills insurance, Medicare, Medicaid • Will not bill patient for deductibles or co-payments • Simplify property tax categories from eight to three • Based on After-Hours Urgent Care tax model • Not Buildable – Zero Units • Vacant, Buildable – One Unit • Developed – Two Units • Set maximum per-Unit rate to fund EMS system even with low use • Fund like a fire department: • Not dependent on call volume to maintain quality operations • Board adjusts tax rates annually based on: • Budget needs • Previous year’s collections

  6. Maximum Tax Change Impactat maximum rate of $120/unit

  7. Example: First Year ScenarioEstimate Based on Current Year Performance • Tax rate set by budget and need: • Current 2011-2012 EMS budget: $1285K • Forecast Collections: $420K • Forecast Tax Need: $865K • 2012-13 Tax Rate Needed: ~$80/unit – or ~$160/developed parcel • Change in your taxes for next year • Increase over 2011 rate for single family dwelling: ~$64/yr • Decrease in taxes for local businesses to help local economy

  8. Example First Year ScenarioEstimate Based on Current Conditions

  9. Benefits of Alternative Structure • No “Out of Pocket” cost to District taxpayers and residents • At current charges, family break-even point is seventeen years, even at maximum tax rate • Board has ability to make financial and tax choices • Service improvements • Community programs • District is not dependent on accidents and illnesses to financially survive

  10. Multi-Year Projection EstimateEstimated Tax Rate for “No Out-of-Pocket” EMS Service • Assumptions: • Budget growth at 4% annually • Revenue growth at 3% annually • No significant change in population or insurance mix • No significant change in services

  11. Hard Questions • What happens if we don’t do this? • We go back to the voters anyway in 1-2 years, just on financial need alone. This is an opportunity for a game-changer. • What about Medicare? Isn’t that already “no out-of-pocket”? • “Treat and Release,” currently $352, is not covered by Medicare • If anybody needs to support a robust ambulance service, it’s the Medicare population. • Why are we asking for $120/unit if we only need $80 next year? • We don’t want to go back to the voters any more times than absolutely necessary—elections are very expensive. • CLSD Board are elected officials who care about tax rates. • Unlike county, state, or federal taxes, every penny of the EMS tax goes to service for our community.

  12. Recommendation • Pass board resolution for No Out-of-Pocket EMS • Specify alternate structure and maximum rate • Target measure for Spring 2012 Special Election • Include with No-Cost AHUC change measure

More Related