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Minutes 1977-08-25CITY COUNCIL ARROYO GRANDE,-CALIFORNIA AUGUST 25, 1977 4:00 P.M. The Council met in special meeting with Mayor de Leon presiding. Upon roll call, Council Members Spierling, Gallagher, Schlegel and Millis reported present. RE-ADOPT RESOLUTION RE. MUNICIPAL TAX RATE FOR 1977-78 Mayor de Leon stated that he-had called this special meeting to reconsider the tax rate adopted by the Council at its regular meeting of August 23, 1977. Re stated that the City Administrator and Finance Director had re-calculated the figures necessary to come up with the previously proposed $1.88 tax rate which proved it to be correct to generate the revenue necessary for the City to function as proposed in the adopted budget. Administrator Butch reviewed with the Council his figures and the various data used to come up with the proposed CITY COUNCIL ARROYO GRANDE, CALIFORNIA AUGUST 25, 1977 PAGE 2 395 $1.88 tax rate, explaining that the Council Members had not taken into consideration the Homeowners' and. Veterans' Exemptions. The tax rate reduction to $1,84 per $1OO of assessed valuation would decrease the City's operating budget by approximately $13,.000. Much discussion followed, with Councilman Millis contending that to set the tax rate at $1,BB at this time would be raising it and the City should be able to cut back in various areas of its operations and absorb the $13,OO0.deficit. Numerous persons in the audience voiced similar feelings.. After Council discus- sion,. a motion was made. by Councilman Gallagher, seconded by Councilman Millis and on the following roll call vote, to wit: AYES: Councilmen Gallagher and Millis; NOES: Councilmen Spierling, Schlegel and Mayor de Leon; ABSENT: None, the motion failed to sustain the action taken by the Council on August 23, 1977 to establish the tax rate at $1.84. More public and Council discussion, testimony and debate followed. Thereafter, Administrator Butch read a resolution, in full, to rescind Resolution No. 1296, which set the tax rate at $1.84. RESOLUTION NO. 1297 A RESOLUTION OF THE CITY COUNCIL OF'THE CITY OE ARROYO GRANDE RESCINDING RESOLUTION NO. 1296 REGARDING THE SETTING OF TAX RATES FOR THE 1977-78 FISCAL YEAR. On motion of Councilman Schlegel, seconded by Councilman Spierling and on the following roll call vote, to wit: AYES.: Councilmen Spierling, Schlegel and Mayor de Leon NOES: Councilmen Gallagher and Millis ABSENT: None the foregoing Resolution was passed and adopted this. 25th day of August, 1977. A motion was then made by Councilman Gallagher, seconded by Councilman Millis and on the following roll call vote, to. wit: AYES: Councilmen Gallagher and Millis; NOES: Councilmen Spierling, Schlegel and Mayor deLeon; ABSENT:- None, the motion failed to adopt the tax rate at $1.84 per $100 of assessed valuation. Councilman Gallagher then made a motion to set the tax rate at $1.85, which motion died for lack of a second. Administrator Butch made more calculations, stated that with a.$1.84 tax rate the City"will have approximately $12,000 less than it had planned on in the. adopted budget, but that the City could live with it, but would have to tighten operations.' Various programs ,and projects were brought up which may in fact increase City costs from what is projected in the .budget and the Council generally agreed that citizens will have to understand that with a five cent tax reduction, everything they ask for in the way of services not budgeted will not be forthcoming readily. After further Council discussion, Administrator Butch read the title of a resolution setting.. the tax rate at $1.85. No vote was taken as Council discussion continued, with Councilman Gallagher stating the amount was_so close, that the $1.84 rake should be sustained. The Council appeared in general agreement that the tax rate be set as follows: $1.59 for General Government. Operations; $0.19 for Employee Retirement; and $O.D6 for Recreation, for a total tax rate of $1.84 upon each $100 of assessed valuation of taxable property. The foregoing was then adopted by the following resolution: RESOLUTION NO. 1298 A RESOLUTIONOF THE CITY COUNCIL OF THE~CITY OF ARROYO GRANDE, CALIFORNIA, FIXING THE AMOUNT OF MONEY NECESSARY TO BE~RAISED BY TAXATION FOR THE CURRENT FISCAL YEAR BEGINNING-JULY 1, 1977, AND FIXING THE RATES~OF TAXES FOR SUCH FISCAL YEAR. On motion of Councilman Schlegel, seconded by Councilman Millis and on the following roll call vote, to wit: AYES: Councilmen Spierling, Gallagher, Schlegel, Millis and Mayor de Leon NOES: None ABSENT: None . the foregoing Resolution was passed and adopted"this 25th day of August, 1977. CITY; _C4[JNCIL ~' ARROYO GRANDE, CALIFORNIA AUGUST 25, 1977 PAGE 3 FLAG DISPLAYED FROM NEWARK - BABE.RUTH:'LEAGUE Administrator Butch displayed a flag brought back by Kaz Ikeda from Newark, Ohio, where the Arroyo Grande Babe Ruth All Stars represented this area at the Babe Ruth Woild Series. ADJOURNMENT On motion of Councilman Spierling, seconded by Councilman Millis and unanimously carried, the meeting adjourned at 5;40 P.M. I i 1 ATTEST:~y(J-2 ~ OC¢C C,G-r~+~17 CITY CLERK MAYOR ; + ~ , !;