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Home My WebLink AboutCC AG PKT 2002-06-10 Supplemental - Statement regarding budget and Utility Users TaxI believe I need to say something about the upcoming budget that will be before the City Council for adoption on June 24" and about the Utility Users Tax. We have a sort of 2 - year budget that is not balanced in the second year. We also have a lot of unknowns for both this year and next year. In order to balance the State budget, the Governor and legislature may decide to take back funds that we now get such as the motor vehicle in- lieu tax. There has already been a proposal at the State level to raise taxes that was defeated. We won't know about this until near the end of the year. If that happens, we will have to amend our budget by additional cuts for this year and drastic cuts for next year. We also do not know when additional revenue will be available in the form of sales tax from Bixby and the Rossmoor center. We do not know when Boeing's development will be on line and what they will have in the way of sales tax. We do not know how much money will be available from the News Rack Ordinance or from business license enforcement. We do not know the overall savings from the Police Department restructuring based upon attrition and planned retirements over the next year. We do not know what kind of revenue the City will realize from the pier restaurant lease which is out for bid. We do not know what the report on the dissolution of the Redevelopment Agency will show. We do not know if it will be a financial plus or minus in the short term. Because of these unknowns, I voted (3 -2) to delay any Utility Users Tax cuts at this time. The City Council agreed that we will have to take another look at the budget as soon as any of the above items happens or as we get a better picture of our future finances. We anticipate that we will be looking at the budget again in November or December of this year. The City Council also agreed that the Utility Users Tax reduction would be reassessed in light of any additional revenues that become available and any modifications made to the budget. If at all possible, when the question of a Utility Users Tax cut again comes before the City Council, I will vote to support a Utility Users Tax cut.