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� • � 1 ' -: .Hr - _ --. ' ,• - � , 2 3'� ,, elsewhere, the likely undesirable effect on the whole economy, � , whether it is reasonable to expect increased sales of inerchandise to homeowners whose property taxes have been lowered since most of the tax saving will go to corporations many of which are not in ' California, the fact that the same homeowners will face an increased income tax next spring with the loss of the property tax deduction, the general effect on the City of layoffs of County and City per- sonnel, the 14% decrease in downtown sales in 1971 at the time of , heavy Ampex layoffs, the ripple effect government �ob losses would create �n private services and business, whether the estimated sales tax revenue �s too low, and the need for the C�ty to be conserva- tive in making such estimates � Discussion continued concerning the possibility of a moratorium on � residential development in view of the inability of cities to pro- vide needed services, the cost of providing services to residences, ' whether the cost of the services is equivalent to the income to � the City from the development, the fact that purchasers of new homes could be advised that no luxury services will be prov�ded, the liability which the City might �ncur if it was known services would not be adequate, the high cost of publ7c safety increases, the fact that because most new residences will be in Redwood Shores and accord- ing to Proposition 13 would be taxed at the sale price that w�thin a short period that area would be carrying a very large part of the total property tax �n the City�and whether or not such inequitable , taxation could be constitutional , i In response to question,as to the expectation of an increase in ' building permit fees and the pro,7ected reduction in revenues from that source, Director of Finance Ference advised that a slowdown in construction �s already anticipated because of increased interest rates and that it is expected that the general uncertainty of the economy as a result of the passage of Proposition 13 would add to the slowdown. (Councilman Leipzig left at 10 30 a.m and did not return.) Discussion followed concerning the likelihood of less movement in the residential real estate market because of the great increase in 3 property tax when homes are purchased. � (The Council recessed from 10•40 to 11.05 a m) Comment was made that although Council instructed staff that an adequate level of publ�c safety has top prior�ty that there is nothing sacred about programs of the fire and police departments which may not be related strictly to safety. It was requested that the Director of Finance take another look at the antic�pated decrease in retail sales (Memo 6/5/78) CONSENSUS. Councilman Rhodes, with the concurrence of Council, requested that a survey be made of all City employees to determine , ' how many would voluntarily accept a four-day work week with a cor- respond�ng 20% salary cut �n order to save �obs. It was noted that the survey would not apply to emergency public service personnel. (Memo 6/5/78) ' ' -3- Budget ' Study 6/3/78 i