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City of San Leandro <br />Meeting Date: May 7, 2018 <br />Presentation <br />Agenda Section:File Number:18-209 ACTION ITEMS <br />Agenda Number:10.B. <br />TO:City Council <br />FROM:Jeff Kay <br />Interim City Manager <br />BY:City Council <br />FINANCE REVIEW:Not Applicable <br />TITLE:Staff Report for Overview of Potential November 2018 Public Safety Parcel Tax <br />Measure <br />BACKGROUND <br />In November 2010, San Leandro voters authorized Measure Z, a local ¼-cent general sales tax <br />revenue measure that was designed to temporarily stabilize the City budget in the midst of the <br />Great Recession. Measure Z provided a reliable, voter-approved funding source for public safety <br />and other essential City services for seven years. As Measure Z approached expiration, San <br />Leandro voters authorized its extension at a half-cent rate for 30 years through passage of <br />Measure HH in November 2014. The stated purpose of Measure HH was to preserve current City <br />service levels for a range of public services, including public safety and anti-gang programs, <br />library programs, services for children and youth, as well as various other general City programs <br />and services. In conjunction with Alameda County Measure BB, Measure HH also provides <br />significant financial support towards the City’s ongoing street and road repair efforts. <br />While Measure HH has enabled the City to maintain existing service levels, the City continues to <br />face a growing backlog of new and emerging needs that may not be sufficiently addressed <br />through existing revenue sources. Such needs include major renovations to aging public safety <br />infrastructure (e.g. police and fire protection facilities), deteriorating playground and park <br />equipment in need of replacement, human services challenges related to the homeless and other <br />at-risk and low-income community members, and community interest in enhanced artistic and <br />cultural amenities. <br />Although local sales tax receipts in recent years have been robust, sales tax is an inherently <br />volatile source of revenue that will generally rise and fall in direct correlation with broader regional <br />economic cycles. Should the economy slow down or contract in future years, the City’s revenue <br />base could similarly face steep declines, thereby causing the need for future budget cuts and <br />associated disruptions in service levels. A diversified revenue base is essential to maintain the <br />Page 1 City of San Leandro Printed on 5/1/2018 <br />1568