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Item B - Fire District
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CC Agenda - 03/07/05 WS
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Item B - Fire District
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6/9/2010 1:11:19 PM
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3/2/2005 3:38:03 PM
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City Council
City_Council_Document_Type
Agenda Item Summary
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3/7/2005
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Finance & Court Services <br /> Financial Services <br /> <br /> City of Eugene <br /> 100 W l0th Avenue, Suite 400 <br />MEMORANDUM Eugene, Oregon 97401-2793 <br /> (541) 682-5021 <br /> (541) 682-5802 FAX <br /> <br />Date: February 24, 2005 <br /> <br />To: Mayor Piercy and City Council <br /> <br />From: Larry Hill, 682-5722 <br /> Financial Analyst <br /> <br /> Subject: Preliminary Comparison of Cost of Delivery of Fire & Emergency Medical Services <br /> <br /> A question has been asked by Council as to whether urban-level fire and emergency medical services now <br /> provided by the City of Eugene to its citizens may be delivered more efficiently through a rural fire <br /> protection district (RFPD). This memo presents a preliminary comparison of costs of delivery of fire and <br /> emergency medical services by three cities and one rural fire protection district, using readily available <br /> budget data adjusted to achieve an 'apples to apples' comparison. In addition this memo reviews the <br /> processes of formation, annexation, governance and financial capabilities of a RFPD. Tax revenue <br /> compression resulting from increased general government taxation is also discussed. <br /> <br /> High quality urban-level fire and emergency medical services may be provided by cities or by rural fire <br /> protection districts in Oregon. With voter approval both cities and RFPDs may establish permanent tax <br /> rates and local option levies to generate revenue to fund fire and emergency medical service operations. <br /> Cities and RFPDs are subject to the same constitutional limit on general government taxation and are <br /> subject to tax revenue compression when this limit is exceeded. Factors affecting costs of delivering these <br /> services include the size and characteristics of the area served, the area's population and the level and <br /> quality of service delivered. Simple cost-of-service comparisons may act as a rough measure of relative <br /> efficiency for similar jurisdictions delivering similar services. Costs must be adjusted to achieve a <br /> reasonable comparison among jurisdictions. <br /> <br /> Review of FY05 adopted budgets shows that Salem, Eugene and Springfield fire and emergency medical <br /> services delivered within each city's limits cost about the same on a per capita basis, while Tualatin Valley <br /> Fire & Rescue RFPD has a higher cost per capita. The difference in per capita costs may be largely <br /> explained by the different characteristics of the areas served. This is only a simple initial analysis. A more <br /> in-depth analysis looking at detailed cost of services and using a range of performance measures would <br /> require a much greater investment of time but would provide more accurate information on relative <br /> efficiency of delivery of fire and emergency medical services under city or RFPD structures. In addition <br /> modeling of the tax compression effects of formation of a special district and resulting losses to the <br /> General Fund and local option levies should be done as part of any further analysis. <br /> <br /> <br />
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