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File Number: 17-235
<br />Overall, the Biennial Budget expenditures proposed for 2017-18 and 2018-19 total $198.6
<br />million and $186.7 million, respectively. The City’s General Fund accounts for $114.4 million
<br />in 2017-18, and $115.1 million in 2018-19. The SARA is $10.5 million and $4.0 million for
<br />2017-18 and 2018-19, respectively. Enterprise activities (Water Pollution Control Plant,
<br />Environmental Services, Shoreline and Storm Water) are $13.9 million and $14.3 million for
<br />2017-18 and 2018-19, respectively. Capital Improvement activities are $31.0 million and
<br />$24.5 million for 2017-18 and 2018-19, respectively; and all other fund activities equal $28.8
<br />million and $28.8 million for 2017-18 and 2018-19, respectively.
<br />On November 8, 2016, San Leandro voters approved Measures OO, PP, and NN, which
<br />assess a gross receipts tax to cannabis businesses, increase the City lodging tax to 14%,
<br />increase tax on parking lots, and on warehouses and reduce tax for small businesses. The
<br />ballot measures mentioned that new cannabis taxes will support social services, public art,
<br />programs that celebrate diversity, multilingual programming and other general city services.
<br />The new lodging tax can be used to enhance library programming for children, more space for
<br />books, reference materials and public access computers, enhancing parks and infrastructure
<br />and other general services. Finally, the modified business taxes can be used to address
<br />infrastructure improvements. Combined, these taxes are expected to raise up to $2 million
<br />over the next two years, although receipt of revenues will be phased and is not entirely
<br />predictable at this time.
<br />Effective April 1, 2015, the voters of San Leandro approved an additional half cent increase to
<br />the City’s transaction and use tax (Measure HH) to sunset in 30 years on March 31, 2045.
<br />The approval of Measure HH promises to protect and maintain City services. The additional
<br />transaction and use tax revenues support street and road repairs; public safety, such as, 911
<br />emergency response, neighborhood police patrols, anti-gang enforcement; library services
<br />and recreation and human services. The successful measure also supports after school
<br />programs for youth including homework assistance and reading programs, school resource
<br />officers and crossing guards, filling potholes and maintaining residential streets and will
<br />continue working towards meeting the ever increasing service demands throughout the City.
<br />Projections indicate the City will receive $11 million to $13 million per year through 2045.
<br />Also, effective April 1, 2015, 70% of the voters of Alameda County approved an additional half
<br />cent increase to sales tax (Measure BB) to fix roads, increase bicycle and pedestrian safety,
<br />reduce traffic congestion and improve air quality. In San Leandro, the measure produces an
<br />annual revenue stream of $1.5 million for street improvements. This revenue source is
<br />administered by the Alameda County Transportation Authority (ACTA) for a period of 30 years
<br />scheduled to sunset on March 31, 2045.
<br />Staff began planning the 2017-18 and 2018-19 Biennial Budget in November, 2016, and
<br />started discussions with City Council on January 28, 2017. As part of the Biennial Budget
<br />process, the City Council reaffirmed its vision for the City during its planning session in
<br />January 2017. These areas of focus help set the framework for the City’s budget
<br />development. Since January, staff has continued Biennial Budget discussions with the City
<br />Council through a budget work session and a Council meeting that focused on budget
<br />forecasts, unfunded liabilities, and the City’s capital needs.
<br />Budget Analysis
<br />Page 2 City of San Leandro Printed on 5/30/2017
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