Item 241/2024
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Patricia Song
Dept:
City Manager Dept: Finance
Date: June 11, 2024
Subject: Introduction and First Reading of an Ordinance to Adopt the Paramedic Tax Override Rate for Fiscal Year 2024-25
Entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN
GROVE ESTABLISHING THE AMOUNT OF MONEY FOR PARAMEDIC SERVICES
THAT MUST BE RAISED BY AN AD VALOREM TAX OVERRIDE AND THE SETTING OF THE TAX RATE OF SAID OVERRIDE. (Action Item)
OBJECTIVE
For the City Council to introduce an ordinance to adopt the Paramedic Tax Override Rate for Fiscal Year 2024-25.
BACKGROUND
In June 1974, Garden Grove voters approved a property tax increase (override) to pay for emergency paramedic services. The approved ballot measure established a tax assessment on properties within the City specifically to pay for a "mobi le intensive care program," or Paramedic Services, in an amount not to exceed 10 cents per $100 of assessed valuation.
The Paramedic Services can be provided by the City or on a regional basis.
Resolution No. 4547-74, adopted by the City Council on March 19, 1974 stated the purpose for the property tax increase was to (1) provide an emergency medical care system for the citizens in the community; (2) pay salaries and required training to program personnel; and (3) purchase and maintain vehicles, radio, telemetry and intensive care equipment, and all necessary supplies. With the transition of the City’s fire protection and emergency medical care services to the Orange County Fire Authority in Apri l 2019, the City no longer directly pays for the program personnel and equipment, instead, annual payment is made to the OCFA to continue the program.
The current rate of the Paramedic Override tax is 8 cents ($0.08) per one hundred dollars ($100.00) of the assessed valuation, which has remained unchanged since June 2017.
DISCUSSION
The use of an ad valorem tax override on taxable properties within the City is necessary for the City to continue to provide Paramedic S ervices to the community. Since 2019, the Item 241/2024
Paramedic Services has been provided by the Orange County Fire Authority (OCFA). The City’s contractual payment to OCFA for Fiscal Year 2024-25 is $26,655,360, which covers fire protection and Paramedic Services. Per statistics provided by OCFA, on average 75% of service calls received are related to emergency medical responses. In 2023, emergency medical service incidents represented 80.6% of total incident volume in the City.
The proposed tax rate is 8 cents ($0.08) per one hundred dollars ($100.00) of the assessed valuation, consistent with the prior year.
FINANCIAL IMPACT
The proposed paramedic tax assessment is anticipated to generate approximately $15.8 million in revenue in Fiscal Year 2024-25, which will be used to pay fo r Paramedic Services provided by OCFA.
RECOMMENDATION
It is recommended that the City Council:
• Introduce and conduct the first reading of the attached ordinance authorizing a property tax override of 8 cents ($0.08) per one hundred dollars ($100.00) of the assessed value for Fiscal Year 2024-25 for paramedic emergency medical care services.
ATTACHMENT
Ordinance Establishing the Amount of Money for Paramedic Services that Must be Raised by an Ad Valorem Tax Override and the Setting of the Tax Rate of Said Override