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File Number: 17-610 <br />audits, and are reviewed by a citizens oversight committee. <br />On July 6, 2015, the City Council passed a resolution authorizing the creation of the Measure HH <br />Citizens Oversight Committee. City Council defines the scope of responsibility and duties of the <br />Oversight Committee to include developing an annual report on the following: <br />·Amounts of Transaction and Use Tax revenue generated by Measure HH <br />·Use of the tax revenue and the impact on the City operating budget including a statement on <br />the impact of the revenue in reducing the amount of cuts resulting from addressing the budget <br />shortfall <br />·Statement of expenditures funded by Measure HH revenues <br />·Impacts of Measure HH on local business competitiveness and the collection ofSales Tax <br />revenues <br />·Measure HH public information and transparency efforts <br />·Participation in developing a revenue sustainability plan and strategy <br />During FY 2016-17, the City accrued three months of sales tax data related to Measure HH. <br />These data are provided by the State Board of Equalization, which are typically at least three <br />months in arrears. <br />The Measure HH Oversight Committee held its first meeting on September 29, 2015, made <br />several recommendations and discussed its annual report. City staff supported the work of the <br />Committee by producing financial information and community priorities that support the need for <br />Measure HH. Audits have produced clean, unqualified opinions from the City’s Certified Public <br />Accountants, an independent auditor. These audits and budgets adopted by City Council <br />received awards from the Government Finance Officers Association. The audit for fiscal year FY <br />2014-15 is currently underway and not expected to conclude until January 2017. <br />The City receives 1.5 cents of the 9.75 cents per dollar sales tax. The State reduced the sales tax <br />by 0.25% due to the expiration of Proposition 30 at the end of 2016. The current allocation of the <br />9.75 cents sales tax is shown on Attachment 1, Table 2: <br />In November 2016, San Leandro voters approved Measures OO, PP, and NN. The Measures <br />passed and took effect on January 1, 2017. A summary of these measures and revenue <br />estimates through June 30, 2017 are set forth below. <br />1) A medical cannabis business tax of up to 10% of gross receipts; <br />2) A modified business license tax that would reduce fees for small businesses, while <br />charging up to 10% of gross receipts for parking lots, and also charging $100 per 1,000 <br />square feet of real property that is used for warehouse businesses; and <br />3) An increased transient occupancy tax to 14%. <br />These potential revenue sources align with previously adopted City Council goals and policy <br />priorities, as outlined below. Furthermore, these new revenue sources would not directly impact <br />the vast majority of San Leandro residents, as a significant portion would be paid by a select <br />number of businesses and people from out of town, such as hotel and airport visitors. <br />Page 2 City of San Leandro Printed on 10/30/2017 <br />115