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constraints and the need for additional staff analysis and community <br />engagement, it is not feasible to place an alternative revenue measure on the <br />November 2018 election ballot. As a result, additional cost reductions would have <br />to occur in order to balance the City's budget in the short term, affecting City <br />services. <br />FISCAL IMPACT <br />If the measure is approved by the voters, the annual General Fund revenues are <br />estimated at around $8.0 million. This amount would fluctuate depending upon <br />economic conditions. Funds generated from this half -cent sales tax would be locally <br />generated and would therefore be safe from circumvention by the State, because they <br />would be protected under the terms of Proposition 1A in the State Constitution. If no <br />revenue measure is sought or passed, deeper operating reductions (approximately $9.0 <br />million over the next five years, in addition to the $3.7 million in operating reductions <br />occurring in FY 2018-19) would be required in order to sustain a balanced budget. <br />The cost of placing the sales tax measure on the ballot is estimated at $30,000. The FY <br />2018-19 Adopted Budget includes funding for this action. <br />ENVIRONMENTAL REVIEW <br />In accordance with CEQA Guidelines Sec. 15378(b)(4), submission of the tax to the <br />voters is categorically exempt from CEQA because it involves the creation of a <br />government funding mechanism which does not involve any commitment to any specific <br />project. <br />ALEX KHOJIKIAN <br />DEPUTY CITY MANAGER <br />