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Minutes - San Leandro City Council Meeting - January 21, 1992 Page - 6 - PUBLIC HEARINGS (continued) strategies which outlined approaches for maintaining the City's fiscal solvency. He said the City Council has reviewed all fees and charges for services each year and has attempted to hold down costs. He said in the last three years the City Council has worked with the community and made modifications to bring in additional revenue. He described the Business License Tax which was increased in 1988, an increase in the Real Property Transfer Tax in 1989, and an increase in the Utility Users' Tax for commercial properties in 1990. He said in the fall of 1990 it became clear the recession was affecting the City's revenue. The City Manager went to the City Council and told them drastic approaches and actions needed to be taken and recommended the Budget Refocus Program, an 18-month Program to balance the budget. The Program cut services by $2. 1 million and eliminated 29 full -time and 15 part-time positions. Mr. Oliver said it became clear additional work was needed to meet a $3 million deficit in the next two years and the City Manager proposed several alternatives, including 10%-across-the-board service reductions or an equal -pain alternative which reduced operating costs while raising additional revenue through a lighting and landscaping assessment district. He said this plan was proposed in 1991 and he reviewed the process, which included surveys sent to all households in San Leandro, two open forums, and numerous articles and presentations to the public. He said the original plan for a $10.20-per-month assessment was reduced downward to $5.97, and then further reduced by recommendation of the Finance Committee to $4.98 per month. He said that program keeps all sworn police and fire personnel while maintaining the quality of the organization and providing additional revenue of $1 .6 million over the next five years to provide needed services. He described further economic unknowns in the future, such as problems with the State's budget, which will not be adopted until after the City's budget is adopted. He said there is a probability that the State will try to take Vehicle License Fees from the City, and there is already an additional City deficit of $500,000 that was not anticipated for this year. He said staff needs direction from the City Council so the 1992-1993 budget can be prepared. John Jermanis, Finance Director, gave an overview of the current financial state of the City. He said there were two components to the Financial Plan to address the deficit and to provide disaster preparedness. He discussed the breakdown of the current City budget. He said if expenditures continue to grow at 6% and revenue at 4% there will be a $6.9 million deficit over the next five years. He said over 75% of the General Fund revenue comes from Property Taxes, Utility Taxes, Sales Taxes, and Cigarette and Vehicle-License Fees.