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IVIINUTES City of San Leandro City Council and San Leandro Redevelopment Agency Joint Meeting-July 6,2004 Page 6 land in San Leandro dedicated for comrilercial and industrial uses and 600/0 for residential use. The ad hoc comn1ittee recommended that the tax be spread fairly between residential units and comlnercial units. Mr. J ermanis noted that the term "commercial" is defined under the business license category, and there are residential units that are categorized as businesses because they are rented out. In discussions with the ad hoc committee, It was determined that all residential units would be assessed a per unit charge based on $78.00 per single-family residence with a 60% reduction for multi-family units, or $46.80. Mr. Jermanis stated that in discussions with other cities that have imposed similar parcel taxes, it ,vas found that most had a reduced rate for n1ulti-family units. The per unit charge for multi-family units is considered fair due to the greater demand for public safety services by residential units. Mr. J ermanis commented that the question by Councilmelnber Santos regarding the structure of the business license tax should be given consideration, and he noted that gross receipts are a type of n1eans test. He pointed out there is already a reduced rate in the business license structure for residential units. Mr. Jermanis commented that if there is a further reduction for five or more multi-family units, the loss of approximately $500,000 in revenue would need to be n1ade up by raising the rate to either single- family residential or commercial properties or by further reductions in City services. Mr. J ermanis noted that in discussions with the homeowners associations, staff has not been able to identify additional budget redpctions over and above those already imposed. He pointed to reductions already made in library hours and services, recreation programs and public works programs. Mr. J ermanis stated that virtually all services have experienced cuts with the exception of Police and Fire persOlmel. Mr. Jermanis indicated that any adjustments in the business license tax would require extensive study in coordination with the Chamber of Commerce and the business comlnunity. He stated that the business license tax is not proposed for review at this time or in the near future. Mayor Young noted that San Leandro is about the same size as the City of Alameda and asked how many sworn police officers are elnployed in that city. Mr. Jermanis stated that Alameda has 112 officers. Mayor Young commented that Proposition 13 caught the City at a low point, and Alameda receives about $5 million more each year in property taxes than San Leandro. In response to a question by Mayor Young, Police Chief Kitchen stated that the Hayward Police Department has 166 officers and the City of Oakland has over 700 officers. Mayor Young remarked that San Leandro does a commendable job of providing Police and Fire services at its present staffing level, and the City would be doing itself a huge disservice by further reducing the budget and corresponding services as the quality of life in San Leandro would also be reduced. Mayor Young responded to the comments by the RHO that it would be forced to fight the measure if its proposal was not accepted. She pointed out that by working to defeat the n1easure, the RHO would be doing a great disservice to its tenants who would benefit from the public safety services.