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92 becomes necessary to lay off many qual�fied people, �t will not be possible to reconstr�ct local services very quickly, the desirability of retaining as many employees as possible through �ob-sharing or whatever techniques may be possible and available in order to keep qualified personnel until funds are available to the City; and the ' desirability of making the public aware of the consequences to them in loss of local government services and probable increased costs elsewhere should the initiative pass. MOTION Counc�lman Norris moved, seconded by Councilman Biagi, that no overall 50% across-the-board cuts in City services be made and that staff be instructed to submit an optional budget which realis- tically reflects the impact of the Jarvis-Gann Initiative with priority to be given to emphasis on an adequate level of public safety programs, and with no alternative sources of income considered. The motion carried unanimously by voice vote. (MINUTE ORDER NO 78-39A) City Manager Fales stated that if the entire budgets for the Park and Recreation Department and the Library were eliminated, the City would still be $100,000 short of keeping the Pol�ce and Fire Departments whole. Mr Fales observed that it is his responsibility to make such matters clear to Council and the public In response to suggestion that a third budget might be prepared indi- cating what might be possible in the event the Initiative should be interpreted so that ctties receive a share of the ava�lable property tax, Mr Fales stated that he must be guided by what the Initiative appears to say which leaves considerable doubt as to whether cities ' and counties will receive the taxes In further respons�e to the quest�on, City Attorney Schricker advised that the language of the Initiative is ambiguous and would undoubtedly go to the courts as soon as enacted, if it should pass, so delays can be expected in any event and tfie City musi antic�pate the prospect of no revenue from property taxes In response to questions as to general direction to City Manager Fales, the City Council indicated that. 1) the funds required for retirement should be shifted to other sources of revenue than property taxes, 2) that since GID No. 1-65 bonds are eligible to be retired through property tax rather than through the use of sales tax as at present that the shift should be made, and 3) that all reserve and future Revenue Sharing funds should be made available to the General Fund (Memo 2/7/78) Mr Fales noted that if affirmative action programs suffer because of layoffs of minorities and women then it is possible that Revenue Sharing funds will not be available. It was pointed out that $300,000 of Revenue Sharing funds have been recommended to be used in connect�on w�th the acquisition of the National Guard Armory for a senior center and other such funds are presently budgeted for Community Swimming Pooi improvements in con- � nection with the $100,000 bequest of Sidney D Herkner Comment was made that the need for adequate public safety and basic admini- stration may be more essential than those pro�ects, even if State funds and the bequest must be sacrificed - Budget -5- Study 2/6/78