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Minutes - San Leandro City Council Meeting - January 21, 1992 Page - 7 - PUBLIC HEARINGS (continued) He said there are three basic reasons revenues do not grow. He said San Leandro's property tax is the lowest in Alameda County, and it is only 17% of the General Fund budget compared to 40% for other cities. He said as housing sales have slowed down so has property-tax revenue. He said the sales-tax revenue is flattening and has been less than what was anticipated. He said the State's allocation to cities is declining and noted the State may attach the City's Motor Vehicle Fees, which will amount to $2.5 million a year to San Leandro. Mr. Oliver reviewed the Executive Summary of the Financial Plan and explained the proposed actions for balancing the General Fund. Steve Meyers, City Attorney, discussed the legal basis and process to form assessment districts. He said the purpose of tonight's Hearing was to discuss the Financial Plan. He said one component of that Plan is the formation of two assessment districts. He said, even if the City Council took action on the Financial Plan, they would not be taking action on the assessment districts. He said in order to form assessment districts the City has to give notice to every property owner whose property would be liable for assessment and hold appropriate Public Hearings . He said the two proposed assessment districts are the Essential Facilities and Services District and the Disaster Preparedness District. He said the assessments must be commensurate with the benefit received by the properties and that, to levy the assessment, each property owner must receive mailed notice of the assessment and be given the opportunity to speak before the City Council at a Public Hearing. Jim Cole, Fire Chief, spoke regarding the components of the Disaster Preparedness Plan. He said the proposed funding would ensure the Plan could be carried out in a timely manner and briefly described the seven elements of the Plan. He said the Plan is critical to provide continuity of government and continuity to the community in case of a disaster. Council Member Santos noted that in 1981 the City of El Cerrito had commissioned a study with East Bay Regional Parks District to try to clear up the hill areas and said the study was not implemented because of lack of funding. He asked if Chief Cole felt that study could have helped keep some of the damage from the recent fire down. Chief Cole said it was possible because there would have been a lot of clean-up work °done on the hillside. Mayor Karp asked what the effect of binding arbitration with the police officers might have on the Financial Plan. Mike Oliver said the City negotiates with the labor unions for the employees and does not currently have binding arbitration. He said if binding arbitration is approved, it will be up to an outside arbitrator to determine salaries of employees, not the City Council .