Finance Highlights 2008 0415 - Laserfiche WebLink

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CITY OF SAN LEANDRO MEMORANDUM DATE: April 15, 2008 TO: John Jermanis, City Manager FROM: Perry Carter, Interim Finance Director BY: Mary Ann Perini, Budget & Compliance Manager ~~,~ SUBJECT: Annual Reporting of the 911 Fee Revenue Program, 2007-08 RECOMMENDATION Staff recommends that the Finance Committee approve the Annual Reporting of the 911 Fee Revenue Program 2007-08, as required by SLMC Section 2-16-220. Staff also recommends continuing with the current rate structure for the Emergency Communication System Access Fee (911 Fee) of $2.06 per single access line for 2008-09. BACKGROUND AND ANALYSIS The 911 Fee was approved by the City Council in fiscal year 2004-OS to provide funding for the Emergency Communication System. Historically, the 911 Fee revenues generate approximately $2.4 million to $2.5 million per year. Currently, the 911 Fee is projected to generate $2.46 million for the fiscal year ending June 30, 2008. Eligible Operating Costs Revenues raised by the 911 Fee Revenue Program may not exceed "eligible" operating costs. Eligible operating costs are the portion of General Fund operating expenses attributed to the emergency communication system, and for 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, for example, Lifeline Subscribers. Subscribers that pay the 911 Fee are not required to pay the expense of providing services to those with exempt lines. As a result, a cost recovery ratio is determined when developing the 911 Fee. Based on December 2007 information, the estimated total phone lines in the City are approximately 115,561, a 3.0% increase over the prior year. Of the total phone lines, it is estimated that 99,810, or 86.4%, are considered eligible for the 911 Fee. Attachment 1 shows a breakdown of the line count by phone line type.