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f�� . �j� �5 � '� 4 - � b n , � � i � i Leqislative Committee Report No. 78-i • Councilman Barrett, Chairman of the Legislative Comm�ttee, noted the presence in the audience of Supervisor William Royer of the Sana Mateo County Board of Supervisors, stated that Supervisor Royer was ; invited to comment to the Cou�cil concernbng the proposals to the State Legislature of the League of California Cities and County , Supervisors Association of California for property tax relief. Councilman Barrett referred to Legislative Report No 78-1, read � portions of the Report and commented concerning them. o D�scussion followed and Supervisor Royer coimnented and replied to , questiQns concern�ng the refusal of some citizens to acknowledge " ��' the cons�derable reduction of local government services to be an= � ticipated if the Jarvis Initiat�ve were to become law, the frus- ' , � trations of citizens relating to tax relief; the attempts of the � League and CSAC to have introduced in the Legislature acceptable alternatives to the Jarvis Initiative; the efforts of the City and County to cooperate to avoid duplication of services and the desirability of such cooperat�on existing at all government levels, the belief of some supporters of the Initiative that it represents a rebuke to the Governor and the State Legislature although the language of the Initiative does not affect Sacramento; the fact � that pol�ce and fire departments are funded through the property tax while other departments may be funded from different unaffected ' sources; the need to educate the public to the kind of chaos and lack of needed local government services which wouid occur if ' property tax funds are el�minated as a source of local government �� funding, and the attempts of local government officials and other citizens to obtain significant tax relief. , Discuss�on continued concerning the League/CSAC proposal and in response to oppos�t7on stated w�th regard to the "split roll" or „ "split rate," Supervisor Royer advised he had also opposed it, � and explained his reasons for supporting it at th�s time. Superv�sor ' Royer noted that the "split rate" is expected to be accompanied by eiimination of the inventory tax, and together it is expected the ob�ections of small business will be met. Mr. Royer also commented �' concerning the $3-5 billion surplus the State now holds, noting the U reasons for the existence of the huge surplus. He stated the need for the State Legislature to provyde direct property tax relief, ' or local offtcials and others must insist that the tncome tax • schedule be reduced to avoid such surpluses being generated. , (Councilman Barrett left the Council Chamber at 9•02 p.m.) , Discussion continued concerning possible uses of the surplus State , funds, whether the funds are being confused with the need for tax relief; whether the fiunds ought to be returned to those who paid them or used as a means by which property tax can be reduced. (The Council recessed from 9 06 to 9:16 p m. Councilman Barrett , returned to his seat alsa,) MOTION• Councilman Norris moved, seconded by Councilman B�agi, , to accept recorrenendation (1) of the Legisative Committee that the C�ty Manager and staff be directed to prepare an analysis of the Reg.Mtg. ' -6- 1/23/78 ' n