TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Bernard Molloy, Fire Chief
PREPARED BY: Diana Lozano, Senior Management Analyst - Fire
SUBJECT:
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Fiscal Year 2024/25 Fire Suppression Assessment
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RECOMMENDATION
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Adopt Resolution No. MFD 24-224, entitled: A Resolution of The Board of Directors of the Murrieta Fire District Levying the 2024/2025 Fire Suppression Assessment Fee and Standby or Availability Charge, and Authorizing the General Manager to Execute the Associated Proposition 218 Compliance Letter.
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PRIOR ACTION/VOTE
On July 21, 2020, the City Council, acting as the Board of Directors of the Murrieta Fire District, adopted Resolution No. MFD 20-206, approving the annual Fire Suppression Assessment for 2020/21 and approving the Proposition 218 Compliance Letter (Vote: 4-0-1).
On July 6, 2021, the City Council, acting as the Board of Directors of the Murrieta Fire District, adopted Resolution No. MFD 21-212, approving the annual Fire Suppression Assessment for 2021/22 and approving the Proposition 218 Compliance Letter (Vote: 5-0).
On June 21, 2022, the City Council, acting as the Board of Directors of the Murrieta Fire District, adopted Resolution No. MFD 22-218, approving the annual Fire Suppression Assessment for 2022/23 and approving the Proposition 218 Compliance Letter (Vote: 5-0).
On June 20, 2023, the City Council, acting as the Board of Directors of the Murrieta Fire District, adopted Resolution No. MFD 23-220, approving the annual Fire Suppression Assessment for 2023/24 and approving the Proposition 218 Compliance Letter (Vote: 4-1-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
In 1981, the voters in Murrieta approved a unit of benefit Fire Suppression Assessment by a 79 percent margin. The annual fire assessment has been approved by the City Council each year since 1993, when the Fire District became a subsidiary of the City. Before 1993, the independent Murrieta Fire Protection District Board of Directors adopted the unit of benefit Fire Suppression Assessment annually. All properties within the Fire District are assessed and aligned equitably with each property's proportional share of special benefits. The method of apportionment established for most districts formed under the 1972 Benefit Act utilizes a weighted method of apportionment known as an Equivalent Benefit Unit (EBU) methodology that uses the single-family home site as the basic unit of assessment. A single-family home site equals one EBU. All other land uses are converted to a weighted EBU based on an assessment formula that equates the property's specific development status, type of development (land use), and the property's size compared to a single-family home site. The purpose of the annual Fire Suppression Assessment is to supplement a portion of the income loss to the Murrieta Fire District due to the result of Proposition 13 and to support operational expenses for fire suppression.
The maximum fee per unit of benefit is $40.00. Each unit of benefit is assessed approximately 1,000 gallons of fire hydrant water flow per parcel, up to a maximum of twelve units of benefit. The $40.00 fee is levied regardless of the property valuation, with most all single-family homes paying this fixed amount since 1981. Commercial and multi-family residential zoned parcels pay up to the maximum of twelve units of benefit, depending on the fire flow requirements. Vacant parcels and outbuildings will not be assessed this fee. The approval of the suppression fee is an annual process required by the Riverside County Auditor-Controller.
In November 1996, California voters passed Proposition 218, the “Right to Vote on Taxes Act.” This constitutional amendment protects taxpayers by limiting the methods by which local governments can create or increase taxes and fees without taxpayer consent. Proposition 218 requires voter approval before imposing or increasing general taxes, assessments, and specific user fees. The attached Proposition 218 Compliance Letter certifies that the City of Murrieta Fire District is compliant with the laws governing special assessment taxes imposed upon property owners as stipulated in Proposition 218.
FISCAL IMPACT
The revenues generated from the Fire Suppression Assessment for FY 2024/25 will be approximately $1,548,374.40. A budget was established for this revenue during the biennial budget under the Fire Administration in General Ledger Account 1513520-40041.
ATTACHMENTS
1. Resolution No. MFD 24-224
2. Proposition 218 Compliance Letter