EMS Funding Alternatives „E'//„IA I)U”
TO: Robert Fernandez
County Administrator
VIA: Leo Ochs, Jr., Administrator
Support Services Division
FROM: John A. Yonkosky, Director
Revenue Services Department
DATE: June 13, 1997
SUBJ: Overview of possible EMS funding alternatives
Leo has asked me to prepare an overview of different funding alternatives for
EMS funding in the future. They are:
1. 100% fee based. Funded only by fees.
2. 100% ad valorem. Transfer from County-wide General Fund.
3. Current method. Transport fee and an ad valorem subsidary (transfer from
the County-wide General Fund).
4. Create County-wide MSTU. Fund EMS with MSTU ad valorem levy.
5. Create County-wide MSTU. Fund EMS with a combination of a MSTU ad
valorem levy and a non-ad valorem special assessment.
6. Create County-wide MSTU. Fund EMS with a non-ad valorem special
assessment.
A brief description of recognized pros and cons follows for each method.
♦ 100% fee based
PRO'S
• eliminate $4.3 million ad valorem transfer from the County-wide General
Fund
CON'S
• realization (collection percentage) rate will go down
• cost to collect will increase slightly
• direct complaints about EMS bills will increase
• restrictions on Medicare/Medicaid funding will increase fees
♦ 100% ad valorem from General Fund
PRO'S
• Cost of collection will go away.
CON'S
• Ad valorem subsidy will increase from $4.3 million to $8.3 million in FY98.
Based on current values, 1.0 mill will generate approximately 19.5 million.
• City of Naples and high value home owners complaints will go up.
• People may tend to use the ambulance as a "cab"ulance.
♦ Current method. Split funding between ad valorem and fees.
PRO'S
• Ad valorem subsidy and fees will tend to increase equally over time.
CON'S
• Cost of collection.
• Direct complaints about EMS bills.
• Restrictions on Medicare/Medicaid funding will increase fees.
• County-wide MSTU. Fund with ad valorem levy,
PRO's
• No cost of collection.
• No concern with Medicare/Medicaid future.
CON'S
• City may not allow MSTU in City (Chapter 125).
• Complaints from high value homeowners about subsiding lower value
homeowners.
• County-wide taxes will go down. MSTU taxes will go up over two (2)
times the General Fund decrease.
• "Cab"ulance.
♦ County-wide MSTU. Fund with ad valorem levy and non-ad valorem
special assessments.
PRO'S
• Eliminate the cost of collection.
• Eliminate EMS bill complaints.
• City of Naples and higher value home owners will support.
CON'S
• Cost of defining the special assessment amount annually.
• Special assessments are equitable but regressive.
• Lower value home owners may complain.
• "Cab"ulance.
♦ County-wide MSTU. Fund with non-ad valorem special assessments.
PRO'S
• Eliminate collection costs.
• Eliminate ad valorem taxes.
• City of Naples and higher value property owners will support.
• Residential assessments will approximate $60 annually. Commercial
assessments will vary.
CON'S
• Assessments are equitable but agressive.
• "Cab"ulance.
• Annual costs to determine assessment amounts (study).
JAY:pc