2003 AGN AUG 05 I23 - Laserfiche WebLink

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CITY OF COLTON Item #23 AGENDA REPORT FOR THE AUGUST 5, 2003 TO: Honorable Mayor and City Council FROM: Dilu De Alwis, Finance Director SUBJECT: Approval of Contract with Sidewalk Strategies DATE: July 28, 2003 Rankarnund- During the past two years, the City has taken several steps toward overall financial restructuring. This was necessary primarily due to State's budget crisis as well as significant increases in PERS rates. These steps have included departmental reorganizations, expenditure reductions in various areas, increased cash flow monitoring, increased revenue generation where possible, formation of a formal fiscal management committee as well as, most recently, layoffs/job-elimination affecting approximately 40 positions. Even after implementation of the above steps, it remains clear that beginning in 2004-05 the City will need approximately $3 million per year in additional General Fund revenues in order to maintain the existing levels of service in the areas of public safety, parks and recreation and library as well as the numerous other services paid for by the General Fund. As the City works toward getting its house in order, the State is still struggling with its own budget crisis. It is only a matter of time before effects of the State's budget are significantly felt at the local level. Staff addressed the need for a significant revenue increase during its 2003-04 budget presentation. Thus, staff has been exploring the possibility of a revenue generating measures, including a utility users tax (UUT). Dis - issri� ion/ Analycis• Consultant will evaluate Colton's present financial situation and make recommendations for additional finding sources. They will work with our legal counsel and finance staff to determine appropriate revenue enhancements and assist city with building public awareness of our city's needs by designing and implementing a public information program including, if necessary, obtaining public input. Consultant will coordinate the activities (if needed) of other consultants regarding demographic, public research and financial advisory services. Consultant will further provide the city with written recommendations on financing/electoral options including, without limitation, tax rates and type of revenue measure and the related ballot language. A vital part of the success of any ballot measure is the initial research component of the project. This should include a demographic study, public opinion polling, communication with stakeholders and the public as well as other information gathering techniques deemed necessary to craft a successful revenue measure. Staff interviewed and received proposals from three firms that have experience in this area. All three