HomeMy WebLinkAbout4622 Ordinance - Amending PMC 3.35.010 Ambulance UtilitySlide 1FCS GROUP
Presentation to City Council
October 11, 2022
Martin Chaw, Project Manager
Skye Jiang, Sr. Analyst
Ambulance Utility
Rate Study 2022
Slide 2FCS GROUP
About FCS Group
▪Utility rate and fee consulting
▪Utility management consulting
▪Financial planning and analysis
▪Economic services
Slide 3FCS GROUP
Scope of Work
Update previous ambulance utility rate study (2019)
-Current level of service + Open new Station #85 (2023)
-Depending upon growth, addition of new Station #87
-Depending upon growth, addition of new Station #86
Determine a proposed rate for non-emergency lift
calls for service
Slide 4FCS GROUP
Ambulance Utility
●RCW 35.21.766 authorizes cities to form an ambulance utility
»Utility rates cannot exceed total costs
»Rate revenue funds cost of operating utility (includes apparatus, but cannot
include capital spending or major facility renovation)
●Cost of Service study required
»Demand –cost to respond to incidents
»Availability –cost to be on standby and available to respond to incidents
●City of Pasco’s ambulance utility
»Created in 2007
●Responded to over 7,300 incidents in 2021
Slide 5FCS GROUP
Fire Services in Pasco
St. #81
St. #82St. #83
St. #84
St. #85
Slide 6FCS GROUP
Trends in Incidents and Response Times
2019 2020 2021
Number of Incidents 5,842 6,194 7,342
Average Response time (minutes)6.07 6.35 6.03
Unit Notified to Enroute 1.20 1.23 1.04
Unit Enroute to Arrived at Scene 4.87 5.12 4.99
City Residential Population 75,432 76,379 78,700
Number of Incidents per 1,000
population
77.5 81.1 93.3
% Increase in Incidents per 1,000
population
4.6%15.0%
Slide 7FCS GROUP
Funding Fire Services
Fire
Services
Fire Impact
Fees
Ambulance
Utility Rates
General
Taxes
▪Fees assessed on new
development to fund
construction of fire stations
and apparatus
▪Collected over time as new
development occurs
▪Future study to update the
fire impact fees
▪Monthly rates assessed to
residents and businesses for
operation of ambulance
services
▪By City policy, ambulance
rates to recover 83%of
Ambulance Utility operating
costs
▪Continue to pay 17%of
Ambulance Utility operating
costs
▪Includes $420,000 annual
transfer from GF to
Ambulance Utility Fund
Slide 8FCS GROUP
New Fire Stations
2023 2024 2025 2026
Station 85 (Fire engine + equipment +
Ambulance, 15FTEs)
Station 87 (Teleboom engine +
equipment, 12FTEs)
Station 86 (Fire engine + equipment +
Ambulance, 15FTEs)
*Photo: Teleboom fire truck
Forecasted station on-line
(depending upon growth)
Slide 9FCS GROUP
Analysis –Key Assumptions
Economic & Financial Factors
2022-2030 Annual Rate
General Inflation 6.0%
Labor Cost Inflation 6.0%
Benefit Cost Inflation 4.0%
Revenue Growth 3.2-5.2%*
Customer Growth 3.2-5.2%*
*Revenue and customer growth expected to increase in 2023 and 2024 due to additional
employment from new to City industrial and commercial growth.
Slide 10FCS GROUP
Fire Department Funding
$13.1 M $13.9 M $14.6 M $15.5 M $16.3 M
$7.6 M $8.0 M $8.4 M $8.9 M $9.4 M$20.7 M $21.9 M $23.1 M $24.4 M $25.8 M
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2023 2024 2025 2026 2027MillionsCity of Pasco Fire Department Sources of Funding
(Current Level of Service + Station 85)
Ambulance Utility General Fund Subsidy Total
Slide 11FCS GROUP
Ambulance Utility Sources of Funding
$6.9 M $7.6 M $8.2 M $8.9 M $9.6 M
$1.4 M $1.5 M $1.7 M $1.8 M $2.0 M
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
2023 2024 2025 2026 2027MillionsAmbulance Utility Sources of Funding
(Current Services incl. Station 85)
Ambulance Utility General Fund Subsidy
General Fund subsidy represents 17% of ambulance utility rate revenue requirements. Rate revenue requirement reflect total co st
of ambulance utility, less non-rate revenues (e.g., transport payments, WA State GEMT revenues, etc.).
Slide 12FCS GROUP
Ambulance Utility Rate Revenue Requirement ($M)*
with Station 85 Only
$6.9 M $7.6 M $8.2 M $8.9 M $9.6 M
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
2023 2024 2025 2026 2027MillionsAmbulance Utility Revenue Requirement and Monthly Utility Rates
(Current Services incl. St.85)
Ambulance Utility
*Amounts shown reflect net operating costs, inclusive of new Station 85 (scheduled to open in 2023), less non-rate revenues
include ambulance transport fees, Washington State Ground Emergency Management Transportation payments.
$16.66**
per month
$17.42**
per month
$18.61**
per month
$20.31
per month
$21.22
per month
Current Monthly Rate: $16.20 per ERU(2022)
**SAFER grant available to fund personnel costs for Station 85, and will allow City to phase-in rates over 3-year period.
Slide 13FCS GROUP
Ambulance Rates Phase-In Strategy
$16.66 $17.42 $18.61 $20.31 $21.22
$1.37 $1.22 $0.80
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
2023 2024 2025 2026 2027Monthly RateMonthly Ambulance Utility Rates
(Current Services + Station 85)
Monthly Rate Phase-In Strategy
Current
Rate
**SAFER grant available to fund personnel costs for Station 85, and will allow City to phase-in rates over 3-year period.
$18.03
without grant
$18.64
without grant
$19.41
without grant
$16.20
No SAFER
grant
No SAFER
grant
Slide 14FCS GROUP
Ambulance Utility Funding –New Stations 87 & 86
$6.9 $7.6 $8.2 $8.9 $9.6
$1.1 $1.1 $1.2 $1.2$1.5 $1.5 $1.6
$1.4
$1.5
$1.7 $1.8 $2.0
$8.3 M
$10.4 M
$13.0 M $13.9 M $14.9 M
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
2023 2024 2025 2026 2027MillionsAmbulance Utility Sources of Funding
(Current Level of Service + St. 85, 87, 86)
AU (Current+85)AU (87)AU (86)GF (Current+85)GF (87)GF (86)Total
Complementary General Fund operational cost for added Stations is not reflected. Only Ambulance Fund Costs are
in graph depiction.
Slide 15FCS GROUP
Ambulance Utility Rate Revenue Requirement
with New Stations 85, 86 and 87 ($M)
$7.2 M $7.8 M $8.4 M $9.1 M $9.9 M
$1.1 M $1.1 M $1.2 M $1.2 M$1.5 M $1.5 M $1.6 M
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
2023 2024 2025 2026 2027AU Revenue Requirement ($M)Ambulance Utility Rate Revenue Requirement
(Current Services incl. St. 85, 87, 86)
Current incl St.85 Station 87 Station 86
Timing of rate impacts for Station 86 and 87 forecast only.
$16.66**
per month
$20.17**
per month
$24.73**
per month
$26.37
per month
$27.39
per month
**SAFER grant available to fund personnel costs for Station 85, and will allow City to phase-in rates over 3-year period.
Slide 16FCS GROUP
Ambulance Rates Phase-In Strategy
$16.66 $17.42 $18.61 $20.31 $21.22
$2.75 $2.62 $2.67 $2.72 $3.50 $3.39 $3.45
$1.37
$1.49
$0.94
$16.66
$20.17
$24.73 $26.37 $27.39
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
2023 2024 2025 2026 2027Monthly RateMonthly Ambulance Utility Rate
(Current Services incl. St. 85, 87, 86)
Monthly Rate (Current + St85)St 87 St 86 Phase-In Strategy Total
Current
Rate
**SAFER grant available to fund personnel costs for Station 85, and will allow City to phase-in rates over 3-year period.
$16.20
Slide 17FCS GROUP
Comparison with Jurisdictions
Richland Kennewick Pasco
Current (2022) Monthly Ambulance
Utility Rate $10.00 $14.12 $16.20
Levy Collection 2022 $19.2M $14.4M $11.8M
Residential Population 59,609 87,649 77,326
# of Fire Stations 5 5 4
# of People Covered per Station 11,920 17,530 19,330
Service Area (in square miles)42.7
(excludes Hanford)29.2 37.5
# of Square Miles Covered per Station 8.6 5.8 9.4
Ambulance Calls for Service (2020)5,299 7,357 4,626
Ambulance Calls per Station 1,060 1,471 1,157
Density (pop per square mile)1,544 3,057 2,271
Slide 18FCS GROUP
Non-Emergency Lift
2019 2020 2021
Number of non-emergency lift incidents 204 283 252
Number of Incidents per 1,000 population 2.7 3.7 3.2
% Increase in Incidents per 1,000 population 37%-14%
●Currently no fee assessed for non-emergency lifts
●To offset any costs, Staff recommends establishment of a penalty fee to licensed
care facilities.
Slide 19FCS GROUP
Conclusions & Next Steps
●Next Steps
»Increase rates to fully fund Ambulance Utility
operations, including new stations 85 (eff Jan 2023)
»Discussion related to growth and resulting community
needs to guide timing of construction of new stations 86
and 87
●Questions?
Slide 20FCS GROUP
Thank you!