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CITY OF SAN LEANDRO <br />MEMORANDUM <br />DATE: July 3, 2008 <br />TO: San Leandro City Council <br />FROM: Revenue Ad Hoc Committee (Council Members Grant, Starosciak and Gregory) <br />BY: John Jermanis, City Manager <br />SUBJECT: SUMMARY AND RECOMMENDATION FROM THE CITY COUNCIL <br />REVENUE AD HOC COMMITTEE <br />SUMMARY AND RECOMMENDATION <br />The Revenue Ad Hoc Committee of the City Council (Ad Hoc) was established by the City Council <br />to provide additional revenue/expenditure analysis and recommendations to the City Council. The <br />Ad Hoc Committee met five times in Spring 2008 to discuss revenue and expenditure issues <br />pertaining to the proposed 2008-09 budget, as well as long-term fiscal stability for City services. <br />At the conclusion of the June 30, 2008 Ad Hoc meeting, three potential revenue concepts were <br />discussed and agreed upon to forward to the full City Council for consideration at the July 7, 2008 <br />meeting. The three concepts under consideration may be placed on the November 2008 election; <br />they include modernization and updating both the Utility Users Tax and 911 Emergency <br />Communication System Access Fee Ordinance, and consideration of a Police Services Parcel Tax. <br />BACKGROUND AND ANALYSIS <br />In March of this year, the City Council discussed the expected downtrend of City revenues <br />anticipated for the next budget year. Largely due to the downturn in the housing market, increase in <br />gas prices and lower sales tax, the City is receiving substantially lower revenue than was expected. <br />In anticipation of the 2008-09 budget development, the Council agreed to establish a Revenue Ad <br />Hoc Committee to explore several issues including General Fund revenues; to provide <br />recommendations to the Finance Committee and full Council on revenue generation, potential <br />reduction measures, and plans for long-term financial stability. The Ad Hoc Committee met five <br />times; Apri17, 2008, April 21, 2008, May 5, 2008, June 9, 2008, and June 30, 2008. <br />At the June 30, 2008 meeting, the committee discussed the status of the current deficit, as well as <br />the impact to future budgets. The following three revenue generating concepts were presented for <br />consideration - a Police Services Parcel Tax, the 911 fee and the Utility Users Tax (UUT). Each <br />would potentially be eligible for the November 2008 election. Any new measure would need to be <br />