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11213 In respon'se to question, Assistant' City Attorney Maloney referred to Section 55 of the Charter relating to Annual Tax Levy -and advised- that the City may budget for a re- serve account. - - - - - City Manager Fales pointed out that since the adoption of the budget, an unanticipated bill in the amount of : - $80,000 from the State relating to workmens-compensation insurance was received and had _to be paid- from the very nominal reserve of the City. Mr. Fales suggested that had the $80,000 bill be anticipated, provision would have been made for its payment. in"the- 1975=76 budget . Statement was made that it had been understood by some Council members that the tax rate had to be estimated at the time of adoption of an annual budget since assessed- valuation is not- known- at that -time, but that should the valuation be greater thairJ_that expected, then the tax rate would be reduced accordingly, but the City could not increase the budget, even--to provide a more adequate reserve fund. Mr. Fales suggested -that such may have been the custom in the City, but it is not the law, although precedent is important' in -taking action of the kind proposed . - In further response to question; Mr. Maloney advised that in the event of an emergency or major catastrophe, Section 56 of -the Charter relating to Limit of Tax Levy contains provisions which might make it possible to ' raise the tax levy above the $2 .00 limit . - Discussion followed regarding-the desirability of main- taining adequate reserves to' meet unexpected needs of the City; the continuing concern of some Council members with regard to the nominal reserve margin available to the City after its needs are= met; -the burden on taxpayers created by the rather inequitable property tax; the need for tax reform generally; and the desirability of under- taking the research required to determine whether 'or not the action suggested by the motion_ has ever occurred in Redwood City. - - ' The motion failed by majority voice vote . MOTION: Title having been read,• Councilman -Norris 'in- troduced the following ordinance and-moved, seconded by Councilman Henderson, its- approval for first reading :- - AN ORDINANCE FIXING THE AMOUNT -OF MONEY TO BE - RAISED BY TAXATION UPON THE TAXABLE PROPERTY- _- WITHIN THE CITY OF REDWOOD CITY AS REVENUE TO CARRY ON THE VARIOUS DEPARTMENTS OF SAID CITY -FOR THE FISCAL YEAR -1975-19/6, TO PAY THE BONDED INDEBTEDNESS OF SAID CITY FALLING DUE AND BE- ' COMING PAYABLE DURING SAID FISCAL YEAR' TOGETHER WITH THE INTEREST THEREON, TO MAINTAIN THE PUBLIC` - LIBRARY OF SAID CITY DURING SAID FISCAL YEAR, TO PROVIDE FUNDS FOR THE RETIREMENT PLAN, TO PROVIDE - FUNDS FOR PARKING DISTRICT NO. 1, AND FIXING- AND LEVYING THE TAX RATE THEREFOR -7- Reg.Mtg. 8/25/75