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File Number: 14-270 <br />Analysis <br />Based upon analysis provided by the City’s Finance Department, San Leandro can be <br />considered a “sales tax importer”, in that a majority of local sales tax is paid by out-of-town <br />shoppers coming to local destinations. Any extension of Measure Z would not be a property <br />tax - and as visitors to San Leandro pay a majority of the sales tax revenue, visitors are <br />paying well over half of its proceeds. In short, there is good evidence that costs that are <br />generated by out-of-town visitors who use San Leandro’s local services such as streets, <br />sidewalks, parks and police protection are underwritten through Measure Z and would be <br />through, if approved by the voters, a subsequent extension. An extension measure would <br />also enable the City to address the community’s concern for repairing local streets, which only <br />become more expensive to repair over time if left unaddressed. Independent experts have <br />determined that San Leandro’s streets are presently in the second worst condition of any city <br />in Alameda County. Lastly, the proposed measure would also continue to provide San <br />Leandro with a guaranteed source of local funding for vital City services that cannot be taken <br />by Sacramento. <br />The revenue measure to be submitted to the voters, if approved, would establish a half-cent, <br />or 0.5% local rate on retail transactions and sales. The revenue would be collected at point of <br />sale and subsequently remitted to the City by the State Board of Equalization. The measure <br />is approved if the measure receives at least a majority of affirmative votes of eligible City <br />voters. <br />According to the reports of the independent Measure Z Citizens Oversight Committee, annual <br />audits of the usage of existing Measure Z revenues verify the City’s careful financial <br />stewardship of Measure Z dollars. Nevertheless, while Measure Z revenues support current <br />service levels, these funds do not sufficiently address a growing backlog of unfunded public <br />safety, infrastructure, and other program and service needs. <br />Proposed Ballot Question: <br />Should the City Council decide to place the measure on the November 4, 2014 ballot, the <br />following draft ballot language is recommended to be used in the upcoming election. It has <br />been reviewed and is recommended by the City’s consultants, and is approved by the City <br />Attorney; it meets the specific legal and technical requirements of the Elections Code for <br />placement of a transactions and use tax measure. Staff therefore recommends that no <br />changes be made to the proposed ballot language. The City Council may authorize the <br />Mayor or a subcommittee of the City Council to file an argument in favor of the measure and a <br />rebuttal to an argument filed against it and to work with an independent campaign committee <br />or other third-parties on the preparation of the argument and rebuttal. <br />To protect/ maintain local services, including: 911 emergency response; neighborhood <br />police patrols/ anti-gang enforcement; library programs for children, adults/ families; <br />after school programs for children/ teens including, homework assistance/ reading <br />programs; school police officers/ crossing guards; repairing potholes/ maintaining <br />residential streets; and other City services, shall the City of San Leandro extend <br />Measure Z and set the sales tax at ½ cent for 30 years, with citizens oversight, annual <br />audits, all funds for San Leandro, no funds for Sacramento? <br />YESNO <br />Page 3 City of San Leandro Printed on 7/2/2014