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MINUTF~ OF THE ADJO~ P4~3LAR MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA July 23, 1983 The meeting was called to order at 9:16 a.m., in Room 147, Council Chambers, 22 Civic Center Plaza, by Mayor R. W. Luxembourger. Councilmembers present were John Acosta, Gordon Bricken, Daniel E. Griset, P. Lee Johnson, Patricia A. McGuigan, Dan Young, and Mayor R. W. Luxe~bourger. Also present were City Manager A. J. Wilson, City Attorney Edward J. Cooper, Clerk of the Council Janice C. Guy, and n~nagement staff members, Phil Freeland, Allen E. Doby, Sam Johnson, James Swatzel, William Reimer, Agnes Sayers, Ray Davis, Larry Shaffer, and D~] Stone, as wall as members of the local press. 1983-84ANh~JALB[DGET The City Manager updated the Council relative to the iapacts of the State budget upon the City of Santa Ana, explaining tb~t all State aid to local government bad been eliminated, which would result in an anticipated $3 million shortfall for the City during FY 1983-84. He indicated that two possible sources for funding to eliminate this shortfall would be an increase in the property tax to fund the City's existing pension debt, or an increase in the utility tax from three percent to six percent. He recommended the utility tax as the preferred source of increased revenues since any increase in the property tax would be shared with other government agencies, but that all revenues derived from the utility tax would revert to Santa Ana. The Manager noted that this increase did not have to be implemented immediately, but suggested that the utility companies be alerted since a 60-day lead time was required to ~ke the tax operational, and stated that should the City need this revenue, the tax should be in force by November 1. He also stated that in his opinion, additional actions would be taken by the State Legislature when it returned to session in August, and that should the Legislature enact an increase to the sales tax, the need for increased local revenues for S~ta Ana would be obviated. Councilmember Bricken suggested that Santa Ana look for a local solution to its financial problems rather than relying upon the State, and recommended that the Council place a measure for a paramedic or public safety tax on the December 13 election ballot. The Manager explained that if this action were taken and public safety identified as a special purpose activity, there might be difficulty in the future of using general funds for an identified special purpose activity. Councilmember Johnson expressed concern with raising taxes at all, suggested that the citizens were dissatisfied with present tax levels and would not tolerate additional taxes, and reflected that he was against using public safety as a "shield" to raise taxes. CITY COUNCIL MINUTES 244 JULY 23, 1983