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5. Alternate Revenue Sources a. Admissions Tax (405 -06) b. Gross Receipts Business License Tax (405 -07) c. Utility Users Tax (405-08) Report of City Manager 2/23/83 (See also previous budget reports and Minutes of 2/26/83) Discussion followed and City Manager Smith replied to questions concerning the status of projected 1983 -84 income; the cuts which might be acceptable in services; the lack of prospective reserve funds; the lack of funding for any capital improvement projects; the need for maintenance; the long range effects of continuing deterioration of City facilities and services; and the need for guidelines so that staff can prepare the 1983 -84 annual budget. M /S: Rhodes /Biagi to use a ten percent cut of the total City budget as the basis for guidelines, with cuts in individual department budgets to be at the discretion of staff in preparing the Recommended 1983 -84 Annual Budget. Carried unanimously by voice vote. MINUTE ORDER NO. 83 -37 Discussion continued concerning present action to reduce costs in the current fiscal year; the probable effects on the City's finances of a possible court decision to refund property tax; the need for several capital improvement projects; the dangerously low reserves; the obligation to maintain the City; the possibility of imposition of a utility users tax as the most equitable alternate source of funding; the 60 -90 day period required by the utility companies to prepare computers for collection of such a tax; the fact that such a tax might not be available as a revenue source in the future; the ability of users to control the amount paid through their own conservation; and the belief that the community under- stands the need for additional funds to protect their investments in City facilities and services. Jay Clark, 401 Broadway, Vice President of the Government Relations Committee of the Chamber of Commerce and Director of Public Relations for Ampex Corporation, volunteered members of the private sector to work with the City Manager and Council to solve the problems presented by the lack of funds to operate the City. Gene Masciarelli, Redwood Shores, Inc., 350 Marine World Parkway, stated their preference is for a utility user tax which is also the preference of the Chamber of Commerce. Mr. Masciarelli stated that such a tax is broad based and equitable. He suggested that need might exist for a "cap" on the amount of tax a user would pay, noting that inequities could result because of such things as telephone lines leased for computer use. Mr. Masciarelli offered to work with the City on the matter. Marguerite Leipzig_, 3628 Highland, urged Council to accept the offers of Mr. Clark and Mr. Masciarelli to work with the City on a utility user tax and to look for long range solutions to funding problems for the future benefit of the City. Mrs. Leipzig reported that she has heard no opposition to such a tax to pay for needed projects and services. M /S: Bury/Mosher to direct staff to prepare a draft ordinance for imposition of a utility user tax and to accept the assistance of those who have offered it. The motion failed by majority voice vote. Reg.Mtg. 3/7/83 Page 8 MINUTE BOOK NO. 44 Page No. 78