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489 Later at the same meeting we were presented with a letter from the City Manager indicating that the preliminary budget for the ensuing year will be in excess of two million dollars; that the financing thereof will require a tax rate of $1.3049 or some six cents in excess of the current tax rate. A preemptory examination of the data submitted with said letter reveals that is this revenue of $21, 225 was paid into the City' s treasury and could thus be considered as part of available revenue the tax rate could be lowered by close to 2 cents . [14 Gentlemen, I do not believe that it is proper and just that we should make all taxpayers in the city pay that excess to permit the granting of this special consideration to the Oddstad Homes. I do not believe that after careful consideration and reflection the members of this Council would have the taxpayers of this community bear the extra burden, no matter how small, in order that an;y one may enjoy special privileges not accorded to all others on an equal basis." [imir Councilman Weiss moved reconsideration of the action of the Council on the adoption of said Resolution 2244. The motion lost for lack of a second. Councilman Herkner was of the opinion that the City might need the money ( '2l,225) more next year than they would this year. Councilman Weymouth offered ORDINANCE 861 APPROVING THE ANNEXATION TO THE CITY OF REDWOOD CITY OF CERTAIN UNINHABITED TERRITORY DESIGNATED "FARM HILL ADDITION NO. 1" AND HEREIN DESCRIBED, AND HEREIN ANNEXING SAID TERRITORY TO SAID CITY OF REDWOOD CITY and moved its adoption, seconded by Councilman Herkner and carried on roll call, Councilman Weiss voting NO. Councilman Spillers offered RESOLUTION 2258 GRANTING VARIANCE ALLOWING 5' REAR YARD SETBACK TO L. ALAUX (433 Lincoln Avenue) and moved its adoption, seconded by Councilman Wey- mouth and carried on roll call, Councilman Stout voting NO• Councilman Spillers offered RESOLUTION 2259 REQUIRING ASSUM:TION OF BONDED INDEBTEDNESS AND WAIVING PROVISIONS Or' RESOLUTION NO. 1979 IN CONNCTION WITH PROPOSED ANNEXATION OF HIGHLANDS TERRITORY NO. 7 and moved its adoption, seconded by Councilman Weiss on the basis that the annexation fee must be collected in uninhabited areas in the future. Councilman Herkner raised the question as to why they were not considering the annexation fees when it was the previous opinion of the Council that they should collect the fee to pay for the benefits they rece9..ve. This was followed by discussion in which the Mayor stated that they did not consider collecting the fee in this particular case because of the difficulty in collecting the money. A good deal of the property in the area is unimproved and the property owners are scattered and the possibility of collecting the 475.00 per lot from everyone would be almost impossible. The people who did not want the annexation would not pay the, 4P75.00. In the other case, the property that is to be annexed is owned by one owner and there is no problem in collecting the [14 money. The City Attorney raised the question in regard to circulating a petition for improvements the same time the petition for annexation is being circulated. This was foliaged by discussion. Councilman Stout asked that the minutes show the statements made in regard to why the annexation fees were being waived in this case so the Council would not be setting a precedent. Councilman Weiss spoke in regard to the possibility of the City giving their approval of their intent to allow sewer and water improvements at a later date so the people would know for sure whether or not the Council would look in favor of improvements in the event the area is annexed. The motion carried on roll call. Councilman Weiss moved that the City Attorney be advised when he submits the form for annexation that he also provide for the forms for the circulation of petitions for