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HomeMy WebLinkAboutPOWERPOINT PRESENTATION - OCFA EQUITY PROPOSALOrange County Fire Authority Equity Discussions & Proposa Second Amendment to Amended JPA Tustin — November 5, 2013 What is the Equity Issue? To fund government services in California, all homeowners pay an equal 1% -of -property -value in tax In return for these payments, all homeowners receive same level of services Inequities arise when translating the 1% property tax t dollars, and comparing the amount paid from home-tc home, or from city -to -city What is the Equity Issue? Neighboring Homes in Irvine Home #2 Base Year: 2011 Assessed Value: $994,399 1% Property Tax: $9,944 SFF Revenue: $1,200 OCFA's Study of Equity e OCFA has a long history of studying equity and has plemented prior actions to address equity through the JF e City of Irvine raised renewed concerns about equity to OCFA Board in 2012 Lacking action to mitigate their concerns, Irvine indicated the intent to withdraw from the OCFA in 2020 Irvine has a study underway to assess the feasibility of forming independent Fire Department The OCFA Board established the Equity Committee in March 2012 Current Equity Study irmal meetings of the Equity Commit- nformal negotiation meetings betwe =A and Irvine staff proposals exchanged Guiding Principles Solution is feasible to OCFA's financial framework Solution can be supported by OCFA memb agencies Continue providing excellent service to all OCFA members Gain long-term organizational stability used Solution - Enhanced Hybrid Model Equity Payments Using Average Structural Fire Fund Tax Rate: AFF agencies contributing more than the average share of the 1 01 property tax to OCFA are eligible for equity payments The average for OCFNs full jurisdiction is 11.570 per dollar SFF agencies receiving equity payments per this calculation -.hange from year-to-year, depending on annual growth face used Solution - Enhanced Hybrid Model — Cap on Annual Property Tax Growth — Irvine Only: Places a 3.5% cap on growth in future dollars that OCFA will receive from Irvine, net of the equity payments issued under Part 1 of the calculation Any funds above 3.5% will trigger additional equity payments to Irvine ►posed Solution - Enhanced Hybrid Mo ve- Year Phase-in — All Agencies except Irvine: Intended to ease the impact on OCFA's annual budge within the initial five years ($6.4M impact) For agencies impacted by the phase-in, the OCFA Board authorized staff to deliver in-kind services (i.e hand crew or dozer work) in lieu of the cash value o1 the phased -in equity payments vine must commit to remain with OCFA through 2030 Proposed Solution - Enhanced Hybrid Model Annual equity payments to eligible SFF members will be issued using unrestricted sources of OCFA revenue SFF members and Cash Contract members shall not be required to pay additional contributions to OCFA as a result of these equity payments eliminary Approvals Obtair Irvine City Council OCFA Equity Committee OCFA Budget &Finance Committee OCFA Board of Directors Additional Actions Required Approval of the Second Amendment is required by 2/3 c OCFA's individual member agencies (16 of the 24 membi become effective Member agencies may also join in supporting the OCFA'.( validation action , when filed, seeking to obtain a judicia declaration of the validity of the Second Amendment Questions?