CC Min 1999-08-23 Reg - Laserfiche WebLink

Browse Search

users tax. Council comments included making a policy of City departments reducing their budget by 1.25% and provide a share of those savings to the employees and not look for projects to cut. Other cities do have other revenue sources and taxes other than a utility users tax, and Redwood City is unique in being both an old and new city. Finance Committee comments included concern for more discussion among the Council and Council need to determine how to best reduce $2.8 million from the current capital improvement program. If the capital improvement program is not reduced, any reduction would come from the General Fund. If the Utility Users Tax is reduced, the Committee would then expect the entire Council to decide where the impact should occur in the budget. Dr. Steven Howard strongly suggested the Council not make any permanent cuts in the tax and if money was to be returned that it be in the form of a rebate. Referred to the process of taking small amounts of money and putting it together and finding opportunities because of a larger amount. Laws have changed which make it extremely difficult for cities to raise funds and we should not diminish that capability. John Anagnostou expressed the things that are going right as the new City Hall, Fair Oaks branch library, Red Morton Center, Redwood Shores Community Center, Redwood Shores Fire Station, Redwood Shores Maintenance Center, downtown entry features, Police and Fire Station #11. He listed various projects that could be jeopardized with a tax cut and strongly recommended not cutting the utility users tax. Nick Watry encouraged Council to not amend the utility users tax and mentioned the 1999 neighborhood survey as the will of the people to retain the tax. Referred to the State previously taking part of the property taxes from the City and that it most likely will happen again. Felt the community is judged by its amenities and people invest in it because of various projects completed and projected for the future. Pete Hughes objected to the cost of the previously mentioned structures. Strongly recommended the Council accept the recommendation of the Committee and reduce the tax of approximately $500,000. Council comments continued with suggested strategies to cut costs and asking departments to find ways to cut costs. Comments also included opposition to adopting recommendation due to lack of full public process and need to deal with a $3 million reduction over 4 to 5 years in the Capital Improvement Project. Clarification that the City has not taken the community's money, but rather invested it. M/S Jordan/Leipzig to accept the Finance Committee's recommendation to decrease the tax rate from 5.0% to 4.5% and implement a policy to be established and where employees of departments that cut costs receive a share of that savings as a bonus and review on an annual basis. REGULAR COUNCIL MEETING MINUTES BOOK NO. 57 AUGUST 23, 1999 MINUTES Page No. 410 PAGE 9