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Minutes - San Leandro City Council Meeting - March 15, 1993 Page - 20 - NEW BUSINESS (continued) and Contra Costa Counties are watching this process. He said the City is doing something unusual by involving the community in the complete budget process. He said normally the City Manager gets together with Department Heads and presents a budget to the City Council . He said this process is being done right; the City has gone to the people, told them what is happening, and will be using their recommendations. Al Rosenga, Representing the Peralta Citizens Association, Inc. , spoke regarding the Real Property Transfer Tax. He said he feels this Tax is detrimental to new homeowners in San Leandro. He said, when a home is sold, the Property Tax increases anyway. He said the City is overlooking the fact that, if the property turns over, the City receives more property-tax payments. He said he understands the State can steal the property tax, so the City has to be careful ; but, he said, the Real Property Transfer Tax is not really a reliable source of funds. He said, if the economy worsens, sales will decrease; and there will be a budget deficit because there won't be enough to tax. Mr. Oliver said the matter of first-time, home-buyers assistance has been discussed with the Alameda County Board of Realtors, and the matter will be brought back to the City Council . Mr. Rosenga said a first-time, home-buyers program would also reduce revenue. John Justino, 1211 - 147th Avenue, spoke regarding the Utility Tax. He said he pays $400-$500 in utility bills every month. He said he is already disturbed with a $35 Business License Fee. He said the State also wants $700 more. He said he will object if there are matching funds. He said everyone should benefit, not just the hill areas, but the low level , also. Raymond Gresham, 1550 Bancroft Avenue #321, a homeowner and Realtor, said he is a 24-year resident and a homeowner. He said he is appalled at the proposed Transfer Tax increase. He said, as a realtor, it is his opinion San Leandro will be in competition with San Lorenzo, Castro Valley, Pleasanton, Dublin, and San Ramon. He said, up to this time, the Transfer Tax has been split 50-50 between the buyer and the seller, but this is a drastic increase and could affect buyers coming into the City. He said this Tax could drive buyers to surrounding cities. He said prices are not increasing now. He urged the City Council to disapprove the Transfer Tax. Council Member Corbett asked if it was still the custom in Hayward for the tax to be split. Mr. Gresham said it was. Mayor Karp noted the Transfer Tax increase was recommended by the Task Force.