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CITY OF SAN LEANDRO <br />STAFF REPORT <br />DATE: July 19, 2010 <br />TO: City Council <br />FROM: Stephen Hollister, City Manager <br />BY: Lianne Marshall, Assistant City Manager <br />Perry Carter, Interim Finance Director <br />Jacqui Diaz, Deputy City Manager <br />SUBJECT PROJECT /PROJECT DESCRIPTION: <br />APPROVED AND <br />FORWARDED <br />TO CITY COUNCIL <br />Stephen Hollister <br />City Manager <br />MATTER OF CONSIDERATION OF PLACING A SALES TAX MEASURE ON THE <br />NOVEMBER 2, 2010 ELECTION BALLOT <br />SUMMARY AND RECOMMENDATION <br />This report provides an overview of the proposed temporary sales tax revenue measure for <br />consideration by the City Council for the November 2, 2010 election. Should they concur, the <br />City Council would need to take the following actions at the July 19, 2010 City Council meeting: <br />1. By motion, adopt the resolution and direct staff to prepare the related ballot filing <br />procedures for the temporary sales tax measure. <br />BACKGROUND <br />At the June 21" meeting, the City Council directed staff to return to the July 19, 2010 meeting <br />with a report providing details on the proposed sales tax revenue measure. The City has <br />experienced severe reductions in revenue over a three year period, resulting in drastic cuts and a <br />current operating deficit. Revenues have plummeted by $11.6 million over the last four years, <br />and the State has taken more than $7 million of local revenues to address its own fiscal situation. <br />Despite making drastic cuts of $8.5 million in spending, the General Fund budget has an <br />operating deficit of $3 million and General Fund reserves are nearly depleted. If additional <br />revenue is not identified in the next six months, the City will be forced to make even more severe <br />cuts in services and personnel. <br />The Council has identified as a goal to maintain fiscal sustainability and to balance revenues and <br />expenditures. Further, the Council has directed that a long term strategy must be created for <br />future years. A poll was conducted in August 2009 to obtain feedback regarding City service <br />priorities and consider any potential for increasing revenues. The results of the poll indicated <br />strong support for public safety (police and fire) services, street and pothole repair, park <br />maintenance, library programs, senior programs, recreation and afterschool programs. Options <br />