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File Number: 18-603 <br />Use of the tax revenue and the impact on the City operating budget including a <br />statement on the impact of the revenue in reducing the amount of cuts resulting from <br />addressing the budget shortfall <br />The Measure HH revenue is available for any legal expenditure by the City. In the context of public <br />safety, the annual revenue represents about 28% of the police department’s FY 2018-19 budget, <br />which is $40.0 million, and 45% of the fire department budget, which is $24.9 million. Without <br />Measure HH in FY 2018-19, the sworn police officers totaling 93 could be cut by as much as 26 <br />positions (if $11.2 million was removed from the police department budget). Similarly, for the fire <br />department 63 firefighters could be down 30 positions (if all $11.2 million was eliminated from its <br />budget). The ballot also indicated that Measure HH would sustain 9-1-1 emergency response <br />times, neighborhood police patrols, investigation and gang suppression officers, library <br />hours/programs, street and pothole repairs, youth and after-school and senior programs, and <br />other general City services. The City preserved funding for these programs and projects because <br />of Measure HH funds. <br />The pie chart, see Chart 1 on Attachment 2, indicates that a total of 56% will be spent on public <br />safety in FY 2018-19. The remaining 44% will fund libraries, parks, community development, <br />infrastructure improvements, repairs, maintenance, and administration. The General Fund <br />Transfers have decreased from 9% to 7% reflecting a $2.5 million decrease to capital <br />improvements, such as the Police Department, Shoreline and recreation infrastructure. The <br />abbreviations used in the pie chart are Rec (Recreation and Human Services Department), Gen <br />Govt (General Government - City Attorney, City Clerk, City Council, Human Resources, Finance <br />and City Manager), Comm Dev (Community Development Department), and Engineering <br />(Engineering and Transportation). Non-dept. (non-departmental) costs are General Fund debt <br />service, retiree medical, community investment and events, and leases. The City’s FY 2018-19 <br />budget, which ends on June 30, is currently balanced. <br />Impacts of Measure HH on local business competitiveness and the collection of Sales <br />Tax revenues <br />Sales tax increases have occurred at a rate greater than the average rate for other cities in <br />Alameda County since the inception of the Measure Z quarter cent sales tax. Five other cities in <br />Alameda County have a 9.75% total rate: Alameda, Albany, Hayward, Newark and Union City. <br />The other 9 cities in the County have 9.25% total sales tax rates. General sales tax increased <br />3.0% in 17-18, indicating that Measure HH has little effect. <br />Measure HH public information and transparency efforts <br />Measure HH revenue has been highlighted in the City Council’s adopted budget. In the City <br />Council adopted biennial budget message, the following excerpt states: “Measure HH is <br />approved for a 30 year period and promises to protect and maintain City services. The <br />November ballot language mentions 911 emergency response, neighborhood police patrols, <br />anti-gang enforcement, and library programs for children, adults and families. The successful <br />measure also supports after school programs for youth including homework assistance and <br />reading programs, school resource officers, and crossing guards. The measure will also help fill <br />Page 5 City of San Leandro Printed on 11/27/2018