Finance Highlights 2007 0501 v2 - Laserfiche WebLink

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i-: ; CITY OF SAN LEANDRO MEMORANDUM DATE: April 25, 2007 TO: Finance Committee FROM: Jesse Baloca, Finance Direc~ Carla Rodriguez, Deputy Finance Director ~ BY: SUBJECT: 911 FEE ANNUAL REPORTING RECOMMENDATION Staff recommends that the Finance Committee approve the reporting of the 911 Fee Revenue Program for Council acceptance, as required by SLMC Section 2-16-220. Staff also recommends continuing with the current rate in its Fee Schedule to the Emergency Communication System Access Fee (911 Fee) of$2.06 per single access line. BACKGROUND AND ANALYSIS Implementation of the 911 Fee was approved by the City Council in order to address budget shortfall issues in FY 2004-05. The 911 Fee was implemented on December 1, 2004 and generated $1.182 million in FY 2004-05 and $2.434 million in FY 2005-06. Currently, the 911 Fee is projected to generate $2.465 million by FY ending June 30, 2006. Eligible Operating Costs Eligible operating costs are the portion of operating expenses attributed to the emergency communication system operations, and which "telephone subscribers" (subscribers) are required to pay the fee imposed. Ineligible costs are the portion of expenses for availing 911 services to subscribers that have exempt status. Subscribers that pay the 911 fee cannot be over burdened by the additional expense of providing services to those with exempt lines. As a result, a cost recovery ratio is determined when developing the fee assessments. Based on February 2007 information, the estimated total phone lines in the City are approximately 112,183 a 3.6% increase over the prior year. Of the total phone lines, it is estimated that 101,310, or 90.3%, are considered eligible for the 911 fee. Attachment 1 shows a breakdown of the line count by phone line type.