REPORT ON PROPOSAL BY JIM LISSNER TO

RAISE TAXES AND REDUCE EXPENDITURES

 

Recommendation:

That the City Council receive and file this report.

 

Background:

This report has been prepared in response to City Council direction at the meeting of October 12, 1999 to review the material submitted by Mr. Lissner at that meeting and report back to the City Council. A copy of the material submitted by Mr. Lissner is attached.

 

Transient Occupancy Tax: Proposal to increase tax from 10% to 14%. This would make it one of the highest Transient Occupancy Taxes around. A vote of the people would be required to increase the TOT.

 

Sales Tax: Proposal to increase sales tax receipts by working with business operations on PCH. Both staff and Council are presently doing this. Sales Tax in a number of categories has increased already. The State Board of Equalization, as does our sales tax consultant, routinely reviews information for aberrations.

 

Business License Tax: Proposal to increase fees. The business license tax increase would require a vote of the people.

 

Police: Hourly charge for event security. All services provided by any City staff member is a calculated cost based on a number of factors. These rates are reviewed from time to time to ensure that we are covering the costs of providing the service. In some cases, community groups pay a lower or no fee as a result of City Council policy.

 

Sidewalk Dining Rent: Proposal to increase rate from 50¢ to $2.00 per square foot. The City Council has the ability to adjust this charge.

 

Expense Reduction Proposal:

City Hall Remodel: This issue will be coming to the City Council for a final decision in January. A large part of the funding is from restricted sources and there will not be any operational savings if not done. In fact, operating costs may well increase if the work is not done.

Council Compensation: This is set by a combination of state law and local budgeting decisions.

Staff Salaries: Elimination of Fire Chief Position - This approach did not prove to be a prudent way to provide fire service to the community in the past. A Fire Chief is needed to provide leadership and direction for this vital public safety service.

Traffic Signal: Removal of traffic signals at 13th and 14th Streets. Contract has let on this and work will begin in January.

Reallocation of supplies: Funds not spent on revenues received over projections are budgeted to go to specific capital or one-time purchase type activities. This way we do not become dependent on one time revenues or savings to deliver the services expected.

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