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F. Mayor La Berge reported on her trip to the annual League of Cities Conference in Los Angeles and described some of the seminars she attended: How to retain and attract businesses; Alternative Funding for Public Works projects; and How to present controversial projects to your community. Mayor La Berge expressed support for Councilman Murray's earlier suggestion of hiring an Economic Development person. Mayor La Berge asked City Manager Everett to find out more about the group within the League working on the budget process to prepare a strategy for next year's state budget situation. (704-03) MEMO 10/29/92 Mayor La Berge added that other cities were surprised at how Redwood City could continue to provide the quality of life services while other cities were having to cut service drastically. Mayor La Berge stressed the importance of citizen involvement in problem solving and the need to forge stronger coalitions between the community and local government. ----------------------------------------------------------------------------------- 7. BOARD, COMMISSION AND COMMITTEE REPORTS None ----------------------------------------------------------------------------------- 8. STAFF REPORTS A. Discussion and possible adoption of Proposed Budget Reductions Due to State Budget Impacts (401-02) REPORT: Finance Director, October 17, 1992 Finance Director Ramchandani presented the background of the state's attempts to balance its budget by reducing annual return of revenues to the local governments, including: a. the loss of cigarette tax (no impact on City budget as this was expected and already eliminated for this year) b. transfer of 9% of Property Tax (base 1991-92 revenue) to school districts - a loss of $1,015,000 for the fiscal year 1992-93. This is a recurring loss, including the inflated growth of assessed valuation c. transfer of between 25% to 40% (actual percentage not yet determined) from special district property tax - recurring loss of property tax up to $105,000 from Redwood Shores Maintenance District d. One time transfer of $434,000 from the Redevelopment Agencies to the County Education Fund by May 10, 1993 (not from low income housing fund) In response to Council questions, Director Ramchandani advised that the Police Chiefs in the state are studying the legislature's proposal to permit local collection of traffic fines, and that this action would have to be a joint venture. Director Ramchandani explained that due to the actions of the State of California, the City needed to reduce its Fiscal year 1992/93 budget by approximately $860,000 to achieve a balanced budget. Regular Meeting Minutes October 19, 1992 MINUTE BOOK NO. 51 Page 7 Page No. 224