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Minutes - San Leandro City Council Meeting - May 18, 1992 Page - 11 - NEW BUSINESS (continued) John Jermanis, Director of Finance, said the 1992-93 budget is predicated upon this revenue source being available to the City. He said staff was requesting City Council approval this evening so that he can notify the utility companies so they can begin to collect the fees effective July 1. He said that is the reason for making this Ordinance an urgency measure. He said this treats all phone service the same and is uniformly used throughout the State. Council Member Myers asked if AT&T told Mr. Jermanis what the average cost per home and business would be. Mr. Jermanis said this was hard to average because the estimated revenue was reported in an aggregate and it was difficult to break out the details for residences. Council Member Kerr said he has problems with utility taxes. He said this is an urgency measure but he wants to see it discussed at budget meetings and wants input from the public. He said he does not think this will affect most residents extensively but it bothers him that it will affect commercial companies that call cross country constantly. Council Member Perry asked if this was discussed with the San Leandro Chamber of Commerce and the San Leandro Manufacturers' Association. Mr. Oliver indicated, yes, as well as with the Associated Homeowners' Association, Inc. It was pointed out that this was one of the 29 recommendations by the City Council and this is policy in almost every city in California. Mr. Jermanis said San Leandro is one of the only cities that does not have this charge. He said there was concern about the legality but it has been determined the charge is legal . Council Member Corbett asked what would happen if this $400,000 in revenue could not be obtained. Mr. Jermanis said funds would be allocated from the Economic Uncertainties Reserve, which is now down to less than $600,000 and there would be further expenditure reductions. He said he is trying to build the Economic Uncertainties Reserve to a $1 ,000,000 balance. He said other revenue enhancements in the budget are very minimal and this is a major revenue source. The following Ordinance was then introduced: ORDINANCE NO. 92-09 (1170) AN ORDINANCE AMENDING TITLE II, CHAPTER 4, ARTICLE 2 OF THE SAN LEANDRO MUNICIPAL CODE RELATING TO UTILITY USER TAXES FOR TELEPHONE SERVICES URGENCY ORDINANCE TO TAKE EFFECT IMMEDIATELY Introduced by Council Member Polvorosa, who moved that it be passed to print and adopted, seconded by Council Member Perry, and carried by the following called vote: AYES: Council Members Corbett, Faria, Myers, Perry, Polvorosa; Mayor Karp ( 6 ) NOES: Council Member Kerr ( 1 ) ABSENT: None ( 0 )