Belvedere raises property tax for fire services

Belvedere has increased its special property tax to help pay for fire and medical services.

The City Council unanimously approved the tax hike at its meeting on Monday. Councilmember Jim Lynch was absent.

The tax for the 2024-25 fiscal year will be $1,028.02 for residences; $1,170.16 for commercial occupancies; and $205.82 for vacant parcels. For the current fiscal year, which ends June 30, the tax is $994 per residence; $1,131 per occupancy in commercial structures; and $199 per vacant parcel.

“The revenue received for the fire services is roughly half of what we end up paying, and it’s subsidized by the general fund,” Mayor Peter Mark said.

The city’s budget is strained by steadily increasing fire service costs. A draft budget for the 2024-25 fiscal year showed a 7.5% increase in the contract with the Tiburon Fire Protection District. The contract costs around $2.1 million and is expected to increase to $2.4 million in the next budget cycle.

The city also will make one of two payments of $92,500 its annual Section 115 contributions — a trust account needed to fund employee benefits.

The increased property tax should generate about $1.13 million in the next budget year, leaving about $1.27 million needed to fund fire and emergency services.

“The revenue from this assessment is spent only on fire services; however, it does not cover the full cost of fire service and will require a transfer from the general fund to cover the difference,” said Helga Cotter, director of administrative services.

Belvedere residents passed a fire and emergency services tax in 2000, and the City Council makes an annual resolution to collect the tax. The tax is increased yearly based on the percentage change in the population and statewide per capita cost of living.

Councilmember Jane Cooper asked if the city has always made pension contributions under the fire contract. The city will have to contribute around $185,000 over next few years to the employee benefits trust account.

Councilmember Sally Wilkinson said the payments are part of the contract and are an expense shared annually with Tiburon.

“Eventually we’re going to have to absorb that cost, and so therefore we’re choosing to pay it now and spread it over time rather than wait for it to be paid into CalPERS, which is when it technically is treated as an expense, because then it would be a big cost,” Wilkinson said. “It’s a smoothing exercise.”

Cooper suggested asking the Tiburon Fire Protection District if a non-voting representative could be included in its monthly meeting, even if informally, to advocate for Belvedere.

“Obviously, this is the elephant in the room, and I don’t want people to think that this isn’t something that we’re thinking about through the finance committee to find solutions, because we can’t keep going this way forever,” Wilkinson said.