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City of San Leandro <br />Meeting Date: July 7, 2014 <br />Ordinance <br />Agenda Section:File Number:14-278 ACTION ITEMS <br />Agenda Number: <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:City Council <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:ORDINANCE of the People of the City of San Leandro Enacting a <br />Transactions and Use Tax to Be Administered by the State Board of <br />Equalization (requires a two-thirds vote of the City Council to place a measure <br />enacting a 0.5% transactions and use tax for 30 years) <br />WHEREAS, Section 7285.9 of the California Revenue and Taxation Code authorizes <br />cities to levy, increase or extend a transactions and use tax (“sales tax” or “sales and use tax”) <br />at a rate of 0.125% (or any multiple thereof) to be expended for general purposes, which <br />transactions and use tax is subject to the approval by a two-thirds majority vote of all the <br />members of the City Council and by a majority vote of the qualified voters of the City voting in <br />an election on the issue; and <br />WHEREAS, Article XIII C, section 2 of the California Constitution requires that a <br />general tax must be approved by a majority vote of the qualified voters of the City voting in an <br />election on the issue, and that said election shall be consolidated with a regularly scheduled <br />general election for members of the governing body of the local government; and <br />WHEREAS, a majority of the voters of the City of San Leandro approved a one-quarter <br />cent (0.25%) Transactions and Use (Sales) Tax, which expires March 2018; and <br />WHEREAS, this local funding that cannot be taken by the State has ensured that <br />current service levels for public safety, parks, libraries, and other City services and programs <br />are maintained with a reliable source of voter-approved funding; and <br />WHEREAS, although this funding maintains current service levels, it does not allow the <br />City to address a growing backlog of unfunded public safety, infrastructure, and other program <br />and service needs; and <br />WHEREAS, upon expiration of the current sales and use tax measure, the City of San <br />Leandro faces an ongoing budget deficit in the magnitude of approximately $4 million <br />annually, which would result in drastic reductions in many of the City’s existing services, <br />Page 1 City of San Leandro Printed on 7/2/2014