Minutes 2019 0325 State of the City Address

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8 surpassed our goal, and now have over $17 million set aside. By holding on to revenues during good times, we make it easier to survive the down times. In the next few years, the City Council and I – in partnership with our employees, will continue identifying solutions. We need to be competitive in attracting talent, while controlling costs. And fortunately, there are other options. The City has held the line on staffing and expense increases. As you can see here, our staffing is actually 15% lower than a decade ago. And although there is constant pressures from the public, our staff, and even our Council to add services, we believe that fiscal prudence is paramount. Our staff is very literally “doing more with less.” and I am grateful for the pride and professionalism they bring to their jobs. I am also pleased that staff from every City department has devoted significant time over the past year to identify budget strategies to maximize our efficiency. This included identifying creative options to enhance our revenues. They have been going line by line over every single item in the budget in search of savings. A way to strengthen our finances is to ensure that we have a thriving local economy. As I mentioned earlier, we have added over 6,000 jobs in recent years. This growth translates to stronger finances for the City, yet it does place greater demand on our services. A strong economy translates to more revenue – especially sales tax. On this slide, you can see how San Leandro is doing. Every bar above 100 shows a sector where people are coming from other places to spend their money in San Leandro. Our cost increases can’t be addressed with economic growth alone. If we’re going to pay our bills without cuts to valued services, we also need to look at new revenues. Nobody likes to see tax increases, but fortunately, the San Leandro community has been willing to consider them when they are needed to maintain service levels and address critical needs. The City Council is currently looking at several options, including an increase in property transfer tax. We currently have the lowest transfer tax of any charter City in Alameda County. This one-time tax is charged only when properties are sold, but has the potential to bring in millions of dollars for essential services. We’ve also had some discussions about a parcel tax for public safety services. Police and Fire services comprise over 60% of our City budget, and new funding would help us maintain the high level of service. This measure could also allow strategic investments and new technologies.