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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />April 9, 2018 <br /> <br />SUBJECT <br />Public Opinion Research on Revenue Measure Options and Public Engagement <br />Regarding the City's Financial Needs <br /> <br />RECOMMENDATION <br />1. Receive the report on independent public opinion research conducted by EMC <br />Research relating to a local revenue measure; and <br />2. Direct staff to continue working with TBWB Strategies to develop and implement <br />a public engagement and outreach plan regarding the City's financial needs; and <br />3. Direct staff to return to the City Council in June or July 2018 to seek direction on <br />preparation of a general sales tax measure for the November 6, 2018 ballot <br /> <br />BACKGROUND <br />As part of the FY 2017-18 Adopted Budget, the City Council approved a Financial <br />Sustainability Plan to reduce operating costs by approximately $6.0 million and increase <br />revenue by approximately $6.0 million in order to balance the City’s budget over the <br />next five fiscal years. <br />The Financial Sustainability Plan seeks to protect essential City services and address <br />fiscal challenges, including flat and declining revenue sources and a statewide pension <br />problem that requires local solutions. In addition, the City must prepare for inevitable <br />contractions in the local economy by taking a balanced and strategic approach to <br />addressing these challenges over time, while still maintaining a 15 percent General <br />Fund reserve balance. Overall, the Financial Sustainability Plan is designed as a <br />forward-thinking, long-term approach to tackling the fiscal challenges the City is <br />currently facing, and to prepare for risks that are on the horizon. <br />Staff is proposing a balanced approach to meeting these fiscal challenges. The <br />Financial Sustainability Plan strategically reduces costs by implementing increased <br />efficiencies and other reductions, while still preserving high-quality City services. In <br />concert with cost reductions, the City is currently seeking new revenue options. As part <br />of last year’s budget development process, the Council directed staff to work with the <br />Finance and Audit Sub-Committee to examine potential revenue measures. <br />8.B. - Page 1