Bellingham Medic One Levy Frequently Asked Questions

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Kristian Bennett
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1 Bellingham Medic One Levy Frequently Asked Questions October 11, 2004 What is the purpose of the Bellingham Medic One levy? Dedicated, stable funding is essential to creating a quality, reliable emergency medical services program for the citizens of Bellingham, as demand for paramedic services increases and general fund resources fluctuate. If approved by voters, the levy will provide dedicated funds to help create Bellingham Medic One. This new program will be operated by the City of Bellingham Fire Department and provide paramedic services within the City of Bellingham. Additional funds are needed to build a quality, reliable program and meet service needs as Whatcom Medic One winds down its operations. The most immediate need is for an additional medic unit to meet increasing demand for paramedic services by our growing population. A new unit is expected to be deployed by Bellingham Medic One in January How much will this cost property owners? Property taxes will be assessed at 35-cents per thousand, (or $35.00 per year for each $100,000), of assessed property valuation, using property valuation as determined by the Whatcom County assessor. If approved by voters, the levy will represent about a 3% increase to property owners total property tax bills (based on 2004 valuations). The City Council must evaluate and approve the levy rate each year up to the voted amount of 35 cents per thousand in assessed valuation plus an annual inflation factor. After six years, city officials will have to evaluate the need for a replacement levy. How much revenue will the levy raise for Bellingham Medic One? If the levy is approved by voters, the city will collect an estimated $1.6 million in revenue during 2005 (based on 2004 valuations). Over the six-year life of the levy, the city will collect an estimated $ million in funds dedicated to Bellingham Medic One Is the levy proposed for the maximum amount possible? No. State law allows Bellingham voters to approve city property tax levies up to a total of $3.60. The additional 35-cents per thousand proposed for Bellingham Medic One is estimated to bring the total city property tax levy to $3.05 in How can the city justify a 12% property tax increase? 1

2 City of Bellingham property owners have the lowest property tax rates in Whatcom County. The 12% property tax increase only applies to the city portion of the property tax bill. If the levy is approved by voters, total property tax bills will increase by about 3%. The city portion of your property tax bill is only about one quarter of your total property tax bill if you own property in Bellingham. The majority of property taxes go to schools. The city receives revenue from various sources, and property taxes are a small component. In 2004, property taxes contributed 6.6% of total city revenue. If the levy is approved by voters, property taxes will contribute 7.6% of total city revenue. Will the levy fund the full costs of Bellingham Medic One? No. According to six-year revenue and expense projections, the levy will fund approximately 44% of the projected costs of Bellingham Medic One. Fees for service will pay for approximately 32% of the costs. The balance will be paid for by the city s General Fund. Can the levy funds be used to support other city programs? No. Based on state law, money from this levy can only be used for providing emergency medical services through Bellingham Medic One. If the levy is approved, it will reduce further cuts in other city programs and services funded by the General Fund, such as law enforcement, parks and recreation programs and library Why doesn t the city pay for Bellingham Medic One solely from the General Fund? Based on City general fund budget forecasts, the city will not be able to provide the current balance of city services and meet growing demands for emergency medical services without service reductions or additional sources of revenue. City General Fund resources are increasingly limited because revenue increases have not kept up with expense increases. City officials have reduced city services and employees and looked for more efficient ways of doing business during the past few years to address revenue shortfalls. In a June 2004 scientific poll of City of Bellingham voters, 62% of respondents indicated they would support a dedicated levy to fund paramedic Support for a dedicated levy was stronger than support for alternative funding mechanisms or for significant reductions in other government The property tax funding method is consistent with the recently enacted tax limiting initiatives that require voter approval for most tax increases. A voted, dedicated funding source to provide emergency paramedic response is the most common method of funding emergency medical services in Washington State. Doesn t everyone agree emergency medical services are more important than most other city services? Why doesn t the city simply cut other programs to support Bellingham Medic One? 2

3 Most voters who responded to the city s scientific survey said they prefer the city provide a balance of services (72%), and many said they are willing to pay additional taxes to continue to receive that balance of services (56%). City officials have trimmed city-wide spending as General Fund needs outpace available revenues. Since 2002, approximately 34 full-time equivalent positions have been eliminated; additional positions will be eliminated in If Whatcom Medic One is not being eliminated until December 31, 2006, why is this levy being proposed now? The city must begin now to ensure a smooth transition from Whatcom Medic One to the new Bellingham Medic One. Bellingham Medic One will provide service to Bellingham citizens as Whatcom Medic One winds down and ceases operation. A new paramedic unit will begin responding to emergency calls in January There will be a total of three paramedic units serving the City of Bellingham area in 2005, up from two in What will happen if the levy is not approved by voters? Calls for emergency medical services are projected to increase by at least 44% over the next six years. Based on city budget forecasts, city officials will not be able to provide the current balance of city services, in addition to meeting growing demands for emergency medical services, without dramatic service reductions or additional sources of revenue. Why can t the city afford emergency medical services within existing funding, but can afford the Depot Market project, new Museum facilities, and other expensive projects? In city government finances, most sources of funding are earmarked by state law for specific purposes. For example, the Sewer Fund must be used for sewer service and systems and the Water Fund must be used for operating water The Depot Market project and other capital construction projects are funded outside of the General Fund, such as through Real Estate Excise Tax funds, Public Facilities District funds and other special funds. The legal uses of these funds are narrowly defined by state law, and they are not allowed to be used for on-going expenses like emergency medical The city General Fund has the most flexibility in how it can be spent, and as the result is spread quite thin covering core government services such as law enforcement, fire service and emergency medical services, parks operations, library services and more. The proposed Bellingham Medic One levy would provide a dedicated, stable source of funding for emergency medical This will provide Bellingham Medic One with funding stability, provide some protection from General Fund fluctuations, and prevent further reductions in other city programs. 3

4 Why can t the city Fire Department provide these services with existing resources? One full-time medic unit costs approximately $1 million per year in staffing costs. Beginning in January 2005, a new paramedic unit will be deployed within Bellingham city limits to fulfill immediate needs for service. Emergency medical calls for service have increased approximately 8% per year for the past five years requiring the city to put additional paramedic units in place immediately. What is the Matrix Study of the Fire Department? During spring and summer 2004, city officials worked with the Matrix Consulting Group on a comprehensive study of the Bellingham Fire Department. The goal of the study was to identify opportunities to reduce costs and improve the effectiveness of fire and paramedic The consulting team worked with fire department employees, city elected officials and staff and dozens of community members, hospital and medical representatives and others to analyze the Fire Department and make recommendations. Fire Department staff, the Mayor and the City Council are using the results of the study to make changes that will reduce costs, improve service and increase revenues. Some of those changes already have been made; others are planned during 2005, and still others require further study or must be phased in over time. This study is among many efforts city-wide to examine programs and services and recommend changes to ensure quality services and long-term financial sustainability. What does the Matrix Study say? The full report can be found on the city s website at Highlights of the analysis include: Overall workload is increasing. Total expenses have remained relatively constant during the past four years. Medic One performance is highly valued in the hospital and medical community. Fire suppression and emergency medical response performance both exceed national standards. The structure and design of the service networks, including fire station locations, is effective Based on this extensive analysis, key recommendations include: Reorganize fire administration assignments, shifting some administrative personnel back to operations assignments. Increasing permit fees and emergency response fees. Reconfigure fire/ems crews to increase EMS response capacity. Discontinue programs that result in marginal cost benefit. Revise supervising officer schedules to improve communications. 4

5 Didn t The Matrix Study say the city could save millions of dollars by shutting down a station, consolidating dispatch centers, and turning ambulance service over to a private ambulance company? The study did not recommend shutting down a fire station. It recommended assigning personnel differently among the existing fire and EMS crews. This reconfiguration would increase paramedic capacity in areas where it is low while maintaining excellent response times to all areas of the city. The Fire Department is making this change and new crew assignments will begin in January Matrix also submitted a letter after the final report had been issued, to suggest more drastic reductions only if the City s budget situation deteriorated further. These worst case scenario recommendations included re-consolidating the separate fire and law enforcement dispatch centers, and turning emergency medical services over to a private ambulance company. Neither of these options is currently being considered. How will the creation of Bellingham Medic One affect city Fire Department staffing? Emergency medical services calls represent 70% of the department s call volume, and are increasing at approximately 8% per year. The Fire Department has developed a plan to shift existing personnel from fire operations to the Bellingham Medic One operation. The Matrix study concluded that the shift in resources would not compromise the department s ability to respond to fire or medical calls for service. 5

Ad Hoc EMS Sustainability Review Group Presentation to City Council. 11 July 2017

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