Laserfiche WebLink
CITY OF SAN LEANDRO <br />CITY COUNCIL FINANCE COMMITTEE MEETING <br />FEBRUARY 6, 1996 <br />The City Council Finance Committee convened on February 6, 1996, at the San Leandro Library, <br />in Conference Room B. <br />I. 1996-97 Budget Strategies (Oliver/Jermanis) <br />General Fund Strategies <br />Budget strategies are in Draft form and will be updated each week during the <br />month of February. <br />There is approximately a $100,000 spread between Revenue and Expenditure <br />projections for the 1996-1997 fiscal year. <br />John Jermanis reviewed the General Fund Revenue and Expenditure Projections <br />(see Exhibit "A" for details). Following is a partial summary of his review. <br />Property Tax - There is a 2% growth in property tax as permitted under State Law. <br />Sales Tax - We are seeing a continuation of flat sales tax. We are seeing an exact <br />replica of last year. John Jermanis has not anticipated revenue for the new sales <br />tax generators. He has estimated a''/2 % increase in sales tax revenue. <br />Utility User Tax - Kellogg's is leaving and this will have a significant impact on <br />the revenue in this area. John Jermanis is assuming a 1 % increase in 1996, as the <br />local economy is not doing as well as was expected. John Jermanis relies heavily <br />on historical trends to make his revenue assumptions. There has been a consistent <br />3% increase in utility tax over the past 3 years. <br />Other Taxes - The City Council does not have a lot of control over this category. <br />This category includes real property transfer tax which is $6 per $1,000 and is <br />lower than the other taxes in surrounding cities. The franchise fee is revenue that <br />we receive from the Oakland Scavenger Davis Street Transfer Station and our <br />refuse operation . <br />Business License - The City has received a good response from the business <br />community regarding the revised formula for the business license tax. There is no <br />question that the City will reach its goal of increasing this category by $400,000 in <br />1996-97. None of the large businesses have complained about the new change in <br />the business license tax. The new structure does protect small businesses. The <br />