| | Published August 4th, 2010
| MOFD Board Discusses Cost Recovery, Budget
| | By Lucy Amaral |  | | www.mofd.org |
The Moraga Orinda Fire District (MOFD) Board of Directors asked Fire Chief Randy Bradley to move forward with a motor vehicle accident cost recovery program, and received information regarding corrected revenue projections for the 2010/2011 budget year at its July 21st meeting.
According to Chief Bradley's report, the Fire District responds to an average of two motor vehicle accidents per day, half of which result in injuries or possible hazardous fluid spills. Many of these accidents involve nonresidents driving through, or to, Orinda or Moraga. The proposal, similar to MOFD's current ambulance service cost recovery program, would bill auto insurance companies for services. If a MOFD resident is involved, the amount received from the insurance company would be considered payment in full. Nonresidents would be billed for any supplemental charges not paid by the insurance company.
Comments from the Board and the audience revolved around what was appropriate and what should be considered assumed services from property tax payments. As well, unlike the ambulance service program, MOFD could be called to a scene by any number of people not involved with the incident. Bradley said that if MOFD arrives and service is refused by the individual, no insurance companies would be billed or extra charges made.
California Health and Safety Code allows Districts to recover the cost of services that the District provides. Bradley said that a conservative estimate of revenue could be $50,000 per year. The Board directed Bradley to return with a fee resolution and contract for review at the next Board meeting.
The extra revenue could help offset the unexpected budget shortfall also discussed at the meeting. Instead of realizing an increase of two percent, MOFD received word that there will be a decrease of approximately .87 percent in property tax and supplemental tax revenue. This translates into a shortfall of more than $450,000 for the 2010/2011 fiscal year. The original budget stood at $18.5 million.
Board President Frank Sperling said the next steps include the Chief and his staff reviewing programs to determine what adjustments to spending can be made. "The challenge, of course, is to reduce expenses without having any major impact to the level of service we provide," he noted.
Sperling said the Chief will meet with the Board's finance committee to review alternatives and a new budget will be brought back to the full board sometime in August or September.
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Lamorinda Weekly, Moraga CA