HomeMy WebLinkAbout0330.093. -. ' ..
-
9UDliET 93-94
June 3, 1993
THE HONORABLE CITY COUNCIL
Falo Alto, California
Members of the Council:
~rt in Brief
This is an informational report and no Council action is required.
This report corrects previous information concerning costs
associated with the proposed addition of a second paramedic
ambulance. The net impact of adding the second p~rarnedic unit is
a cost to the General Fund of $76,000, not $34,000 as reported in
CMR:314:93.
Discus s i_Q,!I;
The costs and reven1..oCS associated .... 'i th the runnir.g of the proposed
second paramedic unit are detailed below. The discussion is
complicated by the fact that at the sa-rne time that a second
ambulance is prQPosed, a fee increase is also proposed. In
addition, Stanford University reimburses the City of Palo Alto for
fire services. In an attempt to clarify the analysis, revenues and
expenses are discussed below· and sUnl:r1eH-ized in Attachment A for
three scen,:rios in order tc M"ke clear the revenues and costs
associated \o.'ith each chaJ'"1.ge. The revenue figures shown are net of
bad debt_
scenario One:
CMR:330:93
Current para~edic program
materials and equipment and
ated) .
(sta f f i ng , overtime t
current revenue gener-
---------~ .
-
----_._--.
Scenario Two: "The C\ . .ll-rent prog:i:aItt pl us a fee increase {raising
pa~amedic transport fees while keeping the current
staffing and equipment configuratio~J.
Scenario 'Three: Aciditio;1 of secorJ,j paramedic ambulance 'l,{ith the
fee increases.
summary of Results
Scenario One: Current Paramedic Prvgrarn
The current operating program I"j'ould co::;t S£ 19,500 in 1993-94
dollars, including overhead. The revenue generated by t~e program
totals $510,000. Sta~ford would reimburse the city $33,179 for the
paramedic progra~ under the terms of the Fire contract under this
scenario. There[oT2, the net deficit resulting-fro!':! paramedic
operations is $75,)21 under Scenario One.
Scenario T\oIo~ The Current Program Plus a Fee Increase
RaiSing paramedic fees would increase revenue to a total of
$615,000. E~penditures under this scenario remain $619,500;
includi:1g overhead. Stanford 'Would reimburse the City $1,364 under
this scenario fot' paramedic s-e~vL:eg under the Fire services
contract. The net de-licit resulting from para:;nedic operatior.s from
raising fees is therefore $3;136.
Scenario Three! Addition of a Second Ambulance with the Fee
Increase
The c:.ddition of a sec~nd ?~bulance · ... ·ould be staffed through an
increase in overtime. Additional e){penses to opera"te the unit
include materials, training, and vehicle maintenance costs. The
costs to purchase the nelol arobulance are included in the Capital
Budget and are not inclUded in the calculations below'. The
additional transports from having a second unit ~ill increase the
total revenue of the proqra!'!'. to $810,000. The total expenses of
the program will increase to '5923,184, including overhead.
St.anford 'Would reiT.lburse the city $34,295 for paramedic services
under this scenario. The net deficit resulting from paramedic
operations under this alternative is therefore $78,889.
The incremental cost. to the General Fund from adding a second unit
is $303 1 684 (the difference between the expenses related to
CMR:3JO:93 2
··"L·~··· -.
Scenario Two dnd Scenario Three) I while this is !:'lOstly offset by
the incremental revenue, j neluding the crlange in the Stanford
reimb'..lrs.erner;t Clf $227,931. The t~ue ir:,pact on G.aneral Fund is
therefore an increased operating deficit of $75,753, ~hich is the
difference between the increme~tal cost of adding the seco~d unit
($30l,684) an1 th~ in~remental revenue fron the second unit
($227,931) •
Respectfully submitted.
. ,.L I ~t7VCI r=t;-~\"'1tr',)
VII'GINIA RAPRING1'ON
'-_--s~-;;r ;7anCi~ Analyst
~~ISON ___
Director of Finance
~~
Related Staff Reports:
CMR:330:93
CMR:253:93
Cr1R:314:9J
3
-
, , .
ATTACHMENJA
PROPOSED PARAMED!C PROGRAM 1993·94 BUDGET
SCENARlO ONE -NO CHANGE
Revenue
Expenses
'Overhead
Net Deficft Before Stanford Reimbursement
Stanford Reimbursement (30.3%)
NET DEFICIT
SCENARIO TWO -INCREASE FEES
Revenue
Expenses
Overhead
Net Deficit Before Stanford Reimbursement
Stanf'Dfd Reimbursement (30.3%)
NET DEFiCIT
SCENARIO THREE -ADO THE SECOND UNIT
Reven'Je
Expenses
Overhead
Net Deficit Before Stanford Reimbursemer:!
Stanford Reimbursement (30.3%1
NET DEFICIT
IMPACT ON GENERAL FUND FROM SCENARIO
TWO TO SCENARIO THREE ( B·A)
A
$510,000
$483,500
$1313,000
1$109,500)
$76,3}1)
$615,000
$483,500
$ 136,ODQ
1$4,500)
,I S3,13'l!
$810,000
$765,000
$158,184
1$113,184)
$75.753