BUSINESS OF THE CITY COUNCIL CITY OF MERCER ISLAND, WA

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1 BUSINESS OF THE CITY COUNCIL, WA December 6, 2010 Public Hearing PRELIMINARY BUDGET REVIEW: FINALIZE CHANGES TO PRELIMINARY BUDGET, RE-BALANCE GENERAL FUND, AND ADOPT 2011 EMS UTILITY RATES Proposed Council Action: Conduct public hearing; finalize changes to Preliminary Budget; re-balance the General Fund; and adopt 2011 EMS utility rates. DEPARTMENT OF COUNCIL LIAISON EXHIBITS Finance (Chip Corder) n/a 1. Resolution No. 1434, Option 1 (2011 EMS Utility Rates) 2. Resolution No. 1434, Option 2 (2011 EMS Utility Rates) 3. Ordinance No , Option 2 (2011 Property Tax Levy Amount) 4. Ordinance No , Option 2 (2011 Property Tax Levy Percent Increase) 5. Resolution No (Establishing Basic Life Support Ambulance Transport Fee) APPROVED BY CITY MANAGER AMOUNT OF EXPENDITURE $ n/a AMOUNT BUDGETED $ n/a APPROPRIATION REQUIRED $ n/a SUMMARY At its November 15, 2010 meeting, the Council completed its review of the Preliminary Budget and adopted the following resolutions and ordinances: 2011 NORCOM budget (Resolution No. 1435) 2011 water utility rates & service charges (Resolution No. 1431) 2011 sewer utility rates & connection charges (Resolution No. 1432) 2011 stormwater utility rates (Resolution No. 1433) 2011 development & construction permit fee changes (Resolution No. 1436) 2011 property tax levy amount, Option 1 (Ordinance No ) 2011 property tax levy percent increase, Option 1 (Ordinance No ) Changes to the proposed budget will be finalized at the December 6, 2010 meeting. Specifically, staff will tee up the following: Council restored service cuts in the General Fund only 2 options for re-balancing the General Fund budget Page 1

2 Disposition of balance in the Capital Reserve Fund (CIP funding parking lot ) Council Restored Service Cuts (General Fund Only) General Fund Department Non-Departmental Maintenance Description Restore $11,500 in human services cuts. Restore $10,000 Tree Planting program provided that another funding source outside of the City can be identified (e.g. Mountains to Sound Greenway or EarthCorps) or the net cost to the City can be reduced to $0 by charging a higher fee for the trees. Parks & Recreation Arts Council programs: Restore these service cuts in 2011, which have a net cost of $30,600, by transferring an equivalent amount from the 1% for the Arts Fund to the General Fund. These programs are unfunded in 2012 and are still considered service cuts that year in the Final Budget. Staff will tee up the 2012 funding issue at the mid-biennial budget review in November Special events: Restore these service cuts in 2011 and 2012, which have a net cost of $27,453 and $27,237 respectively, provided that the department can fully cover the net costs through fundraising efforts and program/event fees. The Council has given the department through April 30, 2011 to implement a plan to make up the difference. The only other service cut that generated discussion and appeared to be unresolved at the November 15, 2010 meeting was the reduction in the park maintenance level for select parks from B to C ($79,000/year). If the Council is interested in restoring this service cut, there are two funding options: One-time: Transfer $79,000 from the Beautification Fund to the General Fund in 2011 and Ongoing: Identify other service cuts amounting to $79,000 per year (see expenditure cuts listed below under Option 1: Excluding BLS Ambulance Transport Fee & Including 1% Property Tax Increase ). Questions for Council Does the Council want to restore the park maintenance level service cut? If so, what is the preferred funding source? Are there any other service cuts that the Council wants to restore? 2 Options for Re-balancing the General Fund Budget To help the Council re-balance the General Fund budget, 2 options are presented below: 1) Excluding a basic life support (BLS) ambulance transport fee but including a 1.0% optional property tax increase 2) Including a BLS ambulance transport fee but excluding a 1.0% optional property tax increase Page 2

3 The first option was presented to the Council on November 15, 2010 as part of agenda bill It is reproduced in the following table. Option 1: Excluding BLS Ambulance Transport Fee & Including 1% Property Tax Increase General Fund deficit: Description No BLS ambulance transport fee (original proposal) $225,000 $300,000 Restore human services cuts 11,500 11,500 Total General Fund deficit $236,500 $311,500 Less expenditure cuts / service reductions: Employee health care savings (2011 actual rates < budget) -75,000-75,000 Reduce General Fund contribution to Technology CIP -25,000-25,000 Eliminate biennial community survey -20,000 Suspend Eastside Narcotics Task Force program -57, ,000 Eliminate Fire Marshal position (move permit review and inspection duties to DSG) -55,000-55,000 Eliminate YFS School Counselor position -66,000-69,000 Balance (excess expenditure cuts) -$42,000 -$51,500 This represents the Management Team s recommendation for bridging the remaining deficit, assuming a BLS ambulance transport fee isn t instituted. Information regarding each proposed reduction is provided below: Employee Health Care Premiums The City s health care insurance broker (AWC Benefit Trust) distributed final 2011 health care insurance rates late last month. For the General Fund, the rates are $75,000 less than what was assumed in the proposed budget. This reduction in employee health premium costs will decrease General Fund expenditures by $75,000 in 2011 and $75,000 in General Fund Contribution to Technology & Equipment Fund There is adequate fund balance in the Technology & Equipment Fund to absorb an additional $25,000 reduction in annual support from the General Fund for the biennium. This reduction is in addition to the $75,000 annual reduction that is reflected in the proposed budget. Overall, annual General Fund support for technology projects will decline from $250,000 to $150,000 per year during the biennium. This reduction will decrease General Fund expenditures by $25,000 in 2011 and $25,000 in Biennial Community Survey Eliminate this survey work for the biennium. Typically, this expenditure would occur in the second year of the biennium. This reduction would decrease General Fund expenditures by $20,000 in Page 3

4 Eastside Narcotics Task Force Officer The position would remain authorized but would not be filled until recommended by the Police Chief and City Manager and the City Council has been notified. The incumbent would be shifted back to regular patrol duties at mid-year 2011 upon the expected retirement of an existing senior department employee. Without the resources and expertise of the regional taskforce, the responsibility for investigating narcotics cases would shift to our general detectives. Due to the inherent complexities associated with narcotics investigations, it would be very difficult for our detectives to effectively investigate these cases. This service reduction would decrease General Fund expenditures by $57,500 in 2011 and $119,000 in Fire Marshal The position would be eliminated. Fire Code plan review obligations would be shifted to Building Code Plan reviewers in Development Services. Some specialized fire code technical issues and inspections would be contracted out. The proposed budget already reflects a 25% reduction in this position. This service reduction would decrease General Fund expenditures by a net amount of $55,000 in 2011 and $55,000 in YFS School Counselor One counselor would be eliminated. The YFS Director will be prepared to discuss the specifics of this reduction at the Council meeting on Monday night. This service reduction would decrease General Fund contributions to the Youth and Family Services Fund by an additional $66,000 in 2011 and $69,000 in 2012, which is over and above the already proposed reduction of $145,000. Overall, the General Fund subsidy to YFS would decrease from $465,000 per year to $254,000 in 2011 and $251,000 in If the Council approves this budget re-balancing option, or a variation thereof, then the 2011 EMS utility rates (Option 1), which are included in Exhibit 1, will need to be adopted. The attached resolution incorporates changes to each EMS utility customer class rate based on the cost of service study conducted by FCS Group earlier this year, a 0.85% inflationary adjustment based on the First Half 2010 CPI-W for the Seattle metro area, and an overall rate correction of $108,175 to re-establish the link, as originally intended, to the current total cost of the four firefighters (excluding overtime) hired back in The Mercer Island Utility Board unanimously recommended this 2011 utility rate proposal. Since the Council adopted the 2011 property tax levy with the 1% optional increase on November 15, 2010, no further action would be required on the property tax levy. Page 4

5 Option 2: Including BLS Ambulance Transport Fee & Excluding 1% Property Tax Increase Description General Fund deficit: No BLS ambulance transport fee (original proposal) $225,000 $300,000 Restore human services cuts 11,500 11,500 No optional 1% property tax increase 103, ,165 Reduction in 2011 EMS utility rates (per revised ambulance transport fee proposal) 18,700 18,700 Total General Fund deficit $358,365 $433,365 Less expenditure cuts / service reductions: BLS ambulance transport fee (revised proposal) -262, ,000 Employee health care savings (2011 actual rates < budget) -75,000-75,000 Reduce General Fund contribution to Technology CIP -25,000-25,000 Eliminate biennial community survey 0-20,000 Balance (excess expenditure cuts) -$4,135 -$1,635 This option does not require any more staffing reductions beyond what is already reflected in the proposed budget. The BLS ambulance transport fee revenue projections assume the following: Annual # of transports by MIFD = 700 (currently, MIFD transports 100 patients per year) Bill amount per transport = $770 (which is what AMR charges to Zone 1 patients on average) Collection rate = 61% (excludes private pay ) Contracted billing cost = 700 transports x $22/bill = $15,400 Net revenue generated annually = $330,400 - $15,400 = $315,000 Implementation date: February 1, estimated net revenue = $315,000 x 10/12 = $262,500 due to collection lag & accrual policy According to the City s EMS utility rate consultant (FCS Group), instituting a BLS ambulance transport fee would replace the current EMS rate structure, which varies according to customer class based on actual historical experience, with a $7.03 flat rate for each customer class. This is driven entirely by Washington state law and wouldn t result in additional revenue being generated. However, there would be a shifting of costs from the residential board & care, 24 hour nursing, commercial, and public customer classes to the single family and multi-family residential customer classes, because the latter two comprise over 96% of the total customer accounts. To partially mitigate this cost shift, the flat rate could be reduced by $0.25 to $6.78. This would result in a total EMS utility revenue decrease in the General Fund of $18,700 annually. The 2011 rate impact, with and without a BLS ambulance transport fee, is summarized in the table on the following page relative to the 2010 adopted rates. Please note that the EMS rates are presented on a bimonthly basis, which corresponds to the City s utility billing frequency. Page 5

6 2011 Rate (Bi-Monthly) Difference (Bi-Monthly) Customer Class 2010 Rate Without Ambulance Transport Fee With Ambulance Transport Fee 2011 Without 2010 Rate 2011 With 2011 Without RATE PER ACCOUNT: Single Family Residential $3.60 $5.78 $6.78 $2.18 $1.00 Multi-Family Residential $3.47 $5.66 $6.78 $2.19 $1.12 Commercial (<4,500 sf) $11.30 $12.20 $6.78 $0.90 -$5.42 Commercial (4,501-25,000 sf) $20.34 $17.64 $6.78 -$2.70 -$10.86 Commercial (25, ,000 sf) $64.79 $48.68 $6.78 -$ $41.90 Commercial (> 100,000 sf) $84.81 $66.99 $6.78 -$ $60.21 Public Schools $ $91.84 $6.78 -$ $85.06 Public Other $ $ $6.78 -$ $ TOTAL BI-MONTHLY RATE: Residential Board & Care: Covenant Shores $1, $1, $ $ $ Island House Retirement $1, $1, $ $ $1, Sunrise Retirement $1, $1, $ $ $ Aljoya House N/A $ $ N/A -$81.42 In-Home Care $ $ $ $ $ Hour Nursing: Covenant Shores $ $1, $ $1, $1, Mercer Island Care Center $2, $1, $ $ $1, With a BLS ambulance transport fee in place, the 2011 EMS utility rates for the single family and multi-family residential customer classes would increase by an additional $1.00 and $1.12 respectively per bi-monthly bill relative to the 2011 proposed rate without an ambulance transport fee. All other customer classes would experience significant rate decreases in Overall, the total annual revenue generated by the residential board & care, 24 hour nursing, commercial, and public customer classes collectively would decrease by about $68,000, with a corresponding increase in the single family residential and multi-family residential customer classes. If the Council approves this budget re-balancing option, or a variation thereof, then the 2011 EMS utility rates (Option 2), which are included in Exhibit 2, will need to be adopted. The attached resolution incorporates a $6.78 flat rate for each customer class based on the cost of service study conducted by FCS Group earlier this year and the implementation of a BLS ambulance transport fee on February 1, In addition, it includes an overall rate correction of $108,175 to re-establish the link, as originally intended, to Page 6

7 the current total cost of the four firefighters (excluding overtime) hired back in Please note that the Mercer Island Utility Board has not had an opportunity to review this particular 2011 rate proposal. Also, given the Council s adoption of the 2011 property tax levy with the 1% optional increase on November 15, 2010, it would need to adopt two replacement ordinances incorporating a 0% optional increase. These replacement ordinances are attached as Exhibits 3 and 4. If the Council decides to institute a BLS ambulance transport fee, staff will return with an ordinance authorizing the collection of the fee in January To formalize the decision, a resolution declaring the Council s intent to establish a BLS ambulance transport fee and setting the fee amount at a flat rate of $770 effective February 1, 2011 is attached as Exhibit Property Tax Levy Options The two 2011 property tax levy options presented to the Council on November 15, 2010 are re-produced below relative to the 2010 final levy: 2011 Final Levy Elements 2010 Final Option 1 Option 2 Regular Levy: Prior Year Regular Levy $ 9,321,796 $ 9,434,568 $ 9,434,568 Plus 1% Optional Increase* - 95,830 - Dedicated to Fire Truck Replacement: Plus 1% Optional Increase in ,967 89,967 89,967 Plus.65% Banked Capacity in ,479 58,479 58,479 Subtotal $ 9,470,242 $ 9,678,844 $ 9,583,014 Plus New Construction Levy** 86,314 60,003 60,003 Plus Refund Levy** 26,458 39,008 39,008 Total Regular Levy $ 9,583,014 $ 9,777,855 $ 9,682,025 Levy Lid Lifts: 2008 Parks M&O 882, , ,000 Total Levy Lid Lifts $ 882,000 $ 890,820 $ 882,000 Total Levy $ 10,465,014 $ 10,668,675 $ 10,564,025 % Change Relative to 2010*** N/A 1.00% 0.00% * A pro rata portion of 1% optional increase is dedicated to fire truck replacement. ** The 2011 new construction and refund levy amounts are from the 2011 Final Levy Limit Worksheet distributed by the King County Assessor's Office. *** Excludes new construction and refund levies. Questions for Council Which General Fund budget re-balancing option does the Council prefer? What changes, if any, does the Council want to make to the preferred re-balancing option? Page 7

8 Disposition of Balance in the Capital Reserve Fund There is $135,000 available in additional CIP funding, consisting of $100,000 from the Council directed reduction to the Minor Park Improvements (Clarke Beach) project in 2011 and $35,000 in currently available fund balance. The $135,000 can be used as REET backfill in if revenue projections prove to be too optimistic, can be applied to an existing project (e.g. to enhance funding for Open Space Vegetation Management), or can be retained in the Capital Reserve Fund for a future project. Staff recommends using the $135,000 as a REET contingency in Question for Council What does the Council want to do with the $135,000 in the Capital Reserve Fund? Summary of Council Actions Required Tonight Subject If Budget Re-Balancing Option 1 is Approved If Budget Re-Balancing Option 2 is Approved 2011 EMS utility rates Adopt Resolution No. 1434, Option 1 (Exhibit 1) Adopt Resolution No. 1434, Option 2 (Exhibit 2) 2011 property tax levy No further action required Adopt Ordinance Nos and 10-14, Option 2 (Exhibits 3 & 4), which repeal Ordinance Nos and 10-12, which were adopted on November 15, 2010 and included a 1% optional increase 2011 BLS ambulance transport fee No further action required Pass Resolution No The Final Budget ordinance, which incorporates all of the changes made by Council and staff to the Preliminary Budget, will be brought back to the Council for adoption at the December 13, 2010 meeting. RECOMMENDATION Finance Director MOVE TO: 1. Pass Resolution No (Option 1 or 2), which establishes the bi-monthly utility fee for the emergency medical and ambulance services supplied by the City of Mercer Island effective January 1, 2011 and thereafter. If the Council approves Option 2 to re-balance the General Fund budget, then the following ordinances and resolution will need to be adopted. 2. Adopt Ordinance No (Option 2), which appropriates funds and fixes the amount of property taxes to be levied for the year Adopt Ordinance No (Option 2), which identifies the dollar amounts and percentage increases of the regular property tax levy and the levy lid lift for the year Page 8

9 4. Pass Resolution No which establishes a Basic Life Support Ambulance Transport Fee. 5. Direct staff to return in January 2011 with an ordinance authorizing the collection of the BLS ambulance transport fee. Page 9

10 OPTION 1 RESOLUTION NO A RESOLUTION OF THE, WASHINGTON ESTABLISHING THE BI-MONTHLY UTILITY FEE FOR THE EMERGENCY MEDICAL AND AMBULANCE SERVICES SUPPLIED BY THE EFFECTIVE JANUARY 1, 2011 AND THEREAFTER. WHEREAS, In 1980, the Mercer Island City Council created an ambulance service public utility for the purpose of regulating the delivery of basic life support emergency medical and ambulance service within the City of Mercer Island ( Utility ); and WHEREAS, The City of Mercer is authorized to set fees for the Utility under Chapter of the Mercer Island City Code, RCW and RCW (15); and WHEREAS, On October 12, 2010, the Mercer Island Utility Board reviewed the proposed 2011 EMS utility rates, which were based on the 2010 cost of service study completed by FCS Group and an inflationary adjustment based on the First Half 2010 CPI-W for Seattle/Tacoma/Bremerton, and unanimously recommended that the City Council adopt the new rates effective January 1, NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE, WASHINGTON, AS FOLLOWS: Section 1: Emergency Medical and Ambulance Services Rates and Fees For the classifications of single family residential, multi-family residential, business/commercial, public schools, and public/other classifications, the emergency medical and ambulance services rates will be charged on a bi-monthly basis, per equivalent service unit (ESU) as shown in the utility billing system. The bi-monthly rates are shown in the table below. Customer Class ESU Bi-Monthly Single Family Residential 1 $5.78 Multi-Family Residential # of Apt or Condo Units $5.66 Commercial (<4,500 sq ft) 1 $12.20 Commercial (4,501-25,000 sq ft) 1 $17.64 Commercial (25, ,000 sq ft) 1 $48.68 Commercial (>100,000 sq ft) 1 $66.99 Public Schools 1 $91.84 Public/Other 1 $ Exhibit 1 Page 10

11 For the classifications of residential board and care and 24 hour nursing care, the annual rates have two components: 1) $22.41 availability rate per ESU; and 2) $71.17 demand rate per call. The demand rate is based on the actual call volume from January 1, 2008 through December 31, 2009, and each of the facilities in these classifications will be billed individually on a bi-monthly basis for their calls during the study period as shown in the table below: Customer Class Annual Availability Rate Per ESU Annual Demand Rate Per Call Availability Charge Annual Demand Charge Total Charge Bi-Monthly Charge Residential Board & Care: Covenant Shores $22.41 $71.17 $1, $5, $6, $1, Island House Retirement $22.41 $71.17 $ $7, $7, $1, Sunrise Retirement $22.41 $71.17 $1, $6, $7, $1, Aljoya House $22.41 $71.17 $ $ $1, $ In-Home Care $22.41 $71.17 $ $1, $2, $ Hour Nursing: Covenant Shores (Skilled Nursing) $22.41 $71.17 $ $7, $8, $1, Mercer Island Care Center $22.41 $71.17 $1, $7, $9, $1, New customers in the residential board and care and 24-hour nursing home classifications should be charged based on the average calls per unit for their classification until they have established their own call history. Section 2: Effective Date This resolution shall take effect and be in force on and after January 1, Nothing contained herein shall affect the amount of collection of rates, fees, and charges established prior to January 1, PASSED BY THE CITY COUNCIL OF THE, WASHINGTON, AT ITS SPECIAL MEETING ON THE 6 TH DAY OF DECEMBER, ATTEST: Jim Pearman, Mayor Allison Spietz, City Clerk Exhibit 1 Page 11

12 OPTION 2 RESOLUTION NO A RESOLUTION OF THE, WASHINGTON ESTABLISHING THE BI-MONTHLY UTILITY FEE FOR THE EMERGENCY MEDICAL AND AMBULANCE SERVICES SUPPLIED BY THE EFFECTIVE JANUARY 1, 2011 AND THEREAFTER. WHEREAS, In 1980, the Mercer Island City Council created an ambulance service public utility for the purpose of regulating the delivery of basic life support emergency medical and ambulance service within the City of Mercer Island ( Utility ); and WHEREAS, The City of Mercer is authorized to set fees for the Utility under Chapter of the Mercer Island City Code, RCW and RCW (15); and WHEREAS, the Council has directed staff to establish a flat fee for a new BLS ambulance transport service, and revenue from such fees must be deducted from the demand cost of the ambulance utility; and WHEREAS, FCS Group has re-calculated the rates based on deducting the BLS ambulance transport service revenue from the demand cost of the ambulance utility. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE, WASHINGTON, AS FOLLOWS: Section 1: Emergency Medical and Ambulance Services Rates and Fees For the classifications of single family residential, multi-family residential, business/commercial, public schools, and public/other classifications, the emergency medical and ambulance services rates will be charged on a bi-monthly basis, per equivalent service unit (ESU) as shown in the utility billing system. The bi-monthly rates are shown in the table below. Customer Class ESU Bi-Monthly Single Family Residential 1 $6.78 Multi-Family Residential # of Apt or Condo Units $6.78 Commercial (<4,500 sq ft) 1 $6.78 Commercial (4,501-25,000 sq ft) 1 $6.78 Commercial (25, ,000 sq ft) 1 $6.78 Commercial (>100,000 sq ft) 1 $6.78 Public Schools 1 $6.78 Public/Other 1 $6.78 Exhibit 2 Page 12

13 For the classifications of residential board and care and 24 hour nursing care, the annual rates have two components: 1) $40.68 availability rate per ESU; and 2) $0.00 demand rate per call. The demand rate is based on the actual call volume from January 1, 2008 through December 31, 2009, and reflects the net demand cost after forecasted fire transport revenue has been deducted. Each of the facilities in these classifications will be billed individually on a bi-monthly basis for their calls during the study period as shown in the table below: Customer Class Annual Availability Rate Per ESU Annual Demand Rate Per Call Availability Charge Annual Demand Charge Total Charge Bi-Monthly Charge Residential Board & Care: Covenant Shores $40.68 $0.00 $1, $0.00 $1, $ Island House Retirement $40.68 $0.00 $ $0.00 $ $94.92 Sunrise Retirement $40.68 $0.00 $2, $0.00 $2, $ Aljoya House $40.68 $0.00 $ $0.00 $ $ In-Home Care $40.68 $0.00 $ $0.00 $ $ Hour Nursing: Covenant Shores (Skilled Nursing) $40.68 $0.00 $1, $0.00 $1, $ Mercer Island Care Center $40.68 $0.00 $2, $0.00 $2, $ New customers in the residential board and care and 24-hour nursing home classifications should be charged based on the average calls per unit for their classification until they have established their own call history. Section 2: Effective Date This resolution shall take effect and be in force on and after January 1, Nothing contained herein shall affect the amount of collection of rates, fees, and charges established prior to January 1, PASSED BY THE CITY COUNCIL OF THE, WASHINGTON, AT ITS SPECIAL MEETING ON THE 6 TH DAY OF DECEMBER, ATTEST: Jim Pearman, Mayor Allison Spietz, City Clerk Exhibit 2 Page 13

14 OPTION 2 ORDINANCE NO AN ORDINANCE APPROPRIATING FUNDS AND FIXING THE AMOUNT OF TAXES TO BE LEVIED FOR THE YEAR WHEREAS, the City Council of the City of Mercer Island has conducted its review of the Preliminary Budget; and WHEREAS, the City Council of the City of Mercer Island held a public hearing for the purpose of considering testimony regarding the 2011 property tax levy; and WHEREAS, the City Council of the City of Mercer Island, after due consideration of the evidence and testimony at the public hearing, has determined that the City does not require an increase in property tax revenue in order to discharge the expected expenses and obligations of the City of Mercer Island; and WHEREAS, the voters of the City of Mercer Island approved a levy lid lift in 2008 for the purpose of operating and maintaining Luther Burbank Park and other City parks and open spaces; and WHEREAS, the City intends to collect $882,000 of the authorized 2008 Park Maintenance and Operations Levy Lid Lift in 2011; NOW, THEREFORE, THE CITY COUNCIL OF THE, WASHINGTON, DOES ORDAIN AS FOLLOWS: Section 1. Repeal of Ordinance No Ordinance No , adopted at the City Council Regular Meeting if November 15, 2010, is hereby repealed in its entirety. Section 2. Total Property Tax. There is hereby appropriated and fixed to be raised by general property taxes the amount of $10,564,025, which amount, when added to the estimated revenues will balance the revenues with the expenditures and which amount is in compliance with all applicable laws. Section 3. Detail of Property Tax. There is hereby levied upon all taxable property within the City of Mercer Island, Washington, a total tax of $10,564,025 as follows: GENERAL LEVY: REGULAR STATUTORY LEVY $9,682,025 LID LIFTS: LID LIFT 2008 $882,000 TOTAL TAXES REQUESTED FOR 2011 $10,564,025 Exhibit 3 Page 14

15 The foregoing general levy amount shall be automatically adjusted without further action of the City Council to correspond to the final assessed valuation and new construction totals to be received from the King County Assessor prior to December 31, Section 4. City Clerk Certification. Pursuant to RCW , the Clerk is directed to certify the amount necessary to be raised by taxation as above specified to the Metropolitan King County Council. The City Finance Director is authorized and directed to transmit any adjustment made pursuant to Section 2 above to the general levy amount to the Metropolitan King County Council. Section 5. Effective Date. This ordinance shall take effect and be in force on and after January 1, Nothing contained herein shall affect the amount of collection of rates, fees, and charges established prior to January 1, ADOPTED BY THE CITY COUNCIL OF THE, WASHINGTON, AT ITS REGULAR MEETING ON THE 6 TH DAY OF DECEMBER, ATTEST: Jim Pearman, Mayor Allison Spietz, City Clerk APPROVED AS TO FORM: Katie Knight, City Attorney Date of Publication Exhibit 3 Page 15

16 OPTION 2 ORDINANCE NO AN ORDINANCE AUTHORIZING AN INCREASE IN PROPERTY TAX REVENUE FOR WHEREAS, the City Council of the City of Mercer Island has conducted its review of the Preliminary Budget; and WHEREAS, the City Council of the City of Mercer Island held a public hearing for the purpose of considering testimony regarding the 2011 property tax levy; and WHEREAS, the City Council of the City of Mercer Island, after due consideration of the evidence and testimony at the public hearing, has determined that the City does not require an increase in property tax revenue in order to discharge the expected expenses and obligations of the City of Mercer Island; and WHEREAS, the voters of the City of Mercer Island approved a levy lid lift in 2008 for the purpose of operating and maintaining Luther Burbank Park and other City parks and open spaces; and WHEREAS, the City intends to collect $882,000 of the authorized 2008 Park Maintenance and Operations Levy Lid Lift in 2011; NOW, THEREFORE, THE CITY COUNCIL OF THE, WASHINGTON, DOES ORDAIN AS FOLLOWS: Section 1. Repeal of Ordinance No Ordinance No , adopted at the City Council Regular Meeting if November 15, 2010, is hereby repealed in its entirety. Section 2. Regular Property Tax Increase. An optional increase in the regular property tax levy is hereby authorized for the 2011 levy in the amount of $0, which is a 0.0 percent increase from the previous year. The optional 0.0 percent increase is separate from the new construction and refund levies. The total regular property tax levy, excluding the amounts for new construction and refunds, is authorized in the amount of $9,583,014 which is 100 percent of the previous year s regular levy. Section Levy Lid Lift. The property tax levy, which pertains to the Levy Lid Lift passed by a vote of the Mercer Island citizens on November 4, 2008, is hereby authorized for the 2011 levy in the total amount of $882,000. This is 0.0 percent more than the 2010 levy and is within the provisions of the ballot measure. Exhibit 4 Page 16

17 Section 4. City Clerk Certification. Pursuant to RCW , the Clerk is directed to certify the amount necessary to be raised by taxation as above specified to the Metropolitan King County Council. The City Finance Director is authorized and directed to transmit any adjustment made pursuant to Section 2 above to the general levy amount to the Metropolitan King County Council. Section 5. Effective Date. This ordinance shall take effect and be in force on and after January 1, Nothing contained herein shall affect the amount of collection of rates, fees, and charges established prior to January 1, ADOPTED BY THE CITY COUNCIL OF MERCER ISLAND, WASHINGTON, AT ITS REGULAR MEETING ON THE 6 TH DAY OF DECEMBER, ATTEST: Jim Pearman, Mayor Allison Spietz, City Clerk APPROVED AS TO FORM: Katie Knight, City Attorney Date of Publication Exhibit 4 Page 17

18 RESOLUTION NO A RESOLUTION OF THE, WASHINGTON ESTABLISHING BASIC LIFE SUPPORT AMBULANCE TRANSPORT FEES WHEREAS, the City Council of the City of Mercer Island approves the establishment of Basic Life Support (BLS) transport fees; and, WHEREAS, those fees are to be collected pursuant to a billing services contract with a thirdparty biller; and WHEREAS, the City Council wishes to establish reasonable fees for service consistent with Medicare and Medicaid standards and limitations; NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE, WASHINGTON, AS FOLLOWS: Section 1: Emergency Medical Service Transport Fees The BLS ambulance transport fee shall be $770 and shall be effective immediately upon the effective date of this resolution. These fees shall remain in place until amended by the City Council by resolution. Section 2: Effective Date This resolution shall take effect and be in force at such time and date as the City Manager shall approve when the authorizing ordinance and a billing system and forms are in place to ensure compliance with state and federal regulations, but no sooner than February 1, PASSED BY THE CITY COUNCIL OF THE, WASHINGTON, AT ITS SPECIAL MEETING ON THE 6 TH DAY OF DECEMBER, ATTEST: Jim Pearman, Mayor Allison Spietz, City Clerk Exhibit 5 Page 18