Concord City Council (CA) Considers New Tax July 27

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AGENDA ITEM NO.___ ______
REPORT TO MAYOR AND COUNCIL
TO THE HONORABLE MAYOR AND COUNCIL:
DATE: July 27, 2010
SUBJECT: REVENUE MEASURE FEASIBILITY STUDY
The purpose of this staff report is to present information to the City Council about the feasibility of several
revenue options for addressing the remaining $5 million structural budget deficit. This report was prepared in
response to City Council direction during budget deliberations which have occurred over the past nine
months. The report is outlined as follows:
I. History of the budget deficit
II. Actions taken in response to the deficit
III. Budget balancing options
IV. Evaluation of potential revenue options
V. Summary of public outreach efforts
VI. Process for placing a revenue measure on the ballot
VII. Recommendation
I. History
Impact of State takeaways
Over the past decade, the State of California has taken over $33 million of revenue from the City of Concord.
The impact of these takeaways has been to reduce City funds for public safety, maintenance and recreational
programs, as well as the primary source of funds used to promote job growth and economic revitalization in
Concord.
The Great Recession

During good economic times, the City has been able to survive State takeaways of Concord’s revenues
through economic growth. The downturns of the mid-1990s and the early 2000s were of relatively short
duration, and the City was able to weather them through sound fiscal management and long-range planning.
There were many instances where the City Council, despite public pressure to do otherwise, did not move
forward with projects if funding could not be identified to operate and maintain the project over the long term.
Revenue Measure Feasibility Study
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In late 2007, City staff began to see signs that another economic downturn was approaching, and the City
Council approved setting aside $2.3 million in reserves. In June of 2008, the City Council approved the
budget for Fiscal Year 2008-09, approving the elimination of ten positions through attrition and the use of
$1.8 million of the City’s reserves to close a $4.1 million budget gap. This represented the first time that the
City projected the need to use reserves since 2004/05.
II. Actions Taken in Response to the Deficit
By October 2008, the local, state, and national economies were clearly in a deep and historic recession. It
became apparent very quickly that this economic downturn was significantly different than those that had
occurred over the past several decades. All sectors of the economy were affected, each feeding the downturn
of the others. Nearly every City revenue source was declining, particularly its two largest revenues, sales tax
and property tax. Utilizing its 10-year financial planning model, City staff was able to identify the severity of
the recession quickly, and began to develop plans to tackle a growing structural budget deficit. As the
recession continued to worsen beyond everyone’s expectations, the structural deficit grew to a projected $23
million.
The initial approach to reducing the deficit emphasized reduction of expenditures and use of reserves. The
approach was presented as a “three-legged stool”:
1) Reductions to service levels
2) Employee salary and benefit reductions
3) Use of reserves.
New revenues were not recommended as a part of the budget solution. The City Council believed that it was
important to achieve as much deficit reduction as was reasonable through strategic reduction of City services,
reduction of the size of the workforce, equitable reduction of employee salaries and benefits, and judicious use
of reserves before considering major new revenue initiatives. This philosophy is also consistent with current
thinking that suggests that the “new normal” for local government finance will be extended periods of limited
growth in revenues and a continuing need to “right-size” City operations with available revenues.
To date, the City Council has approved $18 million in reductions to the budget. These cuts have impacted
every facet of the City organization, including:
• Reduced police staffing
• Closure of all police field offices
• Reduction of Senior Center hours
• Elimination of some after-school programs and youth scholarship programs
• Reduction of residential street sweeping to once a month
• Reduction of City staffing levels by 25 percent
• Reduction of maintenance of the City’s parks, playfields and medians
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• Elimination of crossing guards at multiple locations

• Reduced storm drain maintenance
• Reduced hours of operation in all City facilities
The City also partnered with all of its employees to achieve significant wage and benefit concessions which
will result in annual, ongoing savings of $3.6 million. A complete list of all of the expenditure reductions to
date is included as Attachment 3 to this report.
In order to prevent more devastating and disruptive cuts to City services and programs, the City has also used
$15.7 million of reserves during this period. This has left the City with a projected reserve level at the end of
Fiscal Year 2009-10 of just $9.6 million, or approximately 2 ½ months of operating expenses for the City.
This is a dangerously low reserve level for a City of 125,000 people, equal to just 12.7% of the General Fund.
Even after making over $18 million in reductions to the budget, the City continues to face a projected $5
million imbalance between revenues and expenditures.
III. Budget Balancing Options
Additional Expenditure Reductions

Clearly one option still available to the City for resolving the remaining budget deficit is through additional
expenditure reductions. As a part of the recent budget deliberations, the City Council asked staff to prepare a
list of the most likely recommended expenditure cuts if the remaining deficit were to be resolved through cuts
alone. Attached to this staff report as Attachment 4 is the list created by the Executive Team of the additional
cuts necessary to close the City’s $5 million budget gap. This list was presented to the Council at both of its
budget hearings in June. All of the cuts would represent drastic and painful changes in the City’s current level
of services, including:
• Reducing neighborhood police patrols
• Eliminating District Command Program and Downtown Officer – reducing capacity for Community
Policing
• Eliminating Police officers from special enforcement and special victims units – slowing response
time to major crimes and reducing the ability to investigate crimes
• Eliminating school resource officers – police officers who serve in each public high school and
middle school in Concord
• Reducing gang/drug prevention programs
• Eliminating all school crossing guards
• Reducing pothole repairs and suspending street maintenance activities
• Reducing maintenance of parks, playgrounds, athletic fields
• Reducing programs at the Senior Center, including recreation and nutrition services
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• Closing or severely reducing hours at Cowell Pool

• Reducing youth and teen after-school/summer programs, including closing the youth camp at Camp
Concord
Potential Revenue Options

During the budget deliberations, Councilmembers expressed strong concerns about the potential impacts of
these further expenditure cuts on the community. Staff was directed to evaluate potential options for an
emergency revenue measure to address the remaining budget deficit. This section will describe three revenue
options – a parcel tax, a sales tax increase, and a utility user tax. In defining each, staff used the following
assumptions:
1) The revenue measure must create enough new revenue to resolve a majority of the City’s $5 million
structural budget deficit in each of the next 10 years, consistent with the City’s ten-year financial
model.
2) In order to ensure continued fiscal discipline and the eventual return to a sustainable, balanced budget,
the revenue measure must be temporary with a 5-year sunset clause.
3) The revenue measure must restore the City’s reserve levels to 15% as soon as possible to reduce the
risk of an unexpected emergency.
Parcel Tax
A local parcel tax is defined as an additional tax that is levied on all privately held property in the City of
Concord for the sole purpose of supporting the City of Concord’s programs and services.
The City of Concord has approximately 37,400 taxable parcels in its jurisdiction. To meet the goals described
above for an emergency revenue measure, the parcel tax would need to generate between $8 and $10 million a
year for five years. If the City desired to do this through a flat parcel tax, it would need to establish a parcel tax
of between $214 per year and $267 per year, with a 5-year sunset.
To establish a parcel tax, state law requires an affirmative 2/3rds (66 2/3%) vote of the electorate. In the
community priorities survey conducted in January 2010, only 56% of Concord respondents were in support of
a local parcel tax option.
Were the voters to pass such a tax, it would be collected by the County Treasurer-Tax Collector at the same
time that the County collects all other property tax.
Local Sales Tax Increase

Although referred to as a “local sales tax” throughout this staff report, this revenue source is formally known
as a “transactions and use tax” in State law. A transaction and use tax is imposed on the same goods and
merchandise as sales tax; however, a sales tax (formally known in State law as a Bradley Burns sales and use
tax) is allocated to the jurisdiction where the sale is negotiated or the order for the sale is taken. A transactions
and use tax, on the other hand, is allocated to the City where the goods are delivered or placed into use.
Merchandise purchased in a “walk-in” retail store is assumed by the state to be used within the city in which
the store is located, unless the retailer is asked to ship the merchandise outside the city as part of the sale or it
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is a motor vehicle that can be driven away. For sales contracts that require shipment of merchandise, the local
sales tax (transactions and use tax) is levied for the city to where the merchandise is shipped. A similar
situation exists with vehicles that require registration: the local sales tax (transactions and use tax) of the city
in which the vehicle is registered applies, regardless of where it was purchased.
To meet the goals described above for an emergency revenue measure, a local sales tax (transactions and use
tax) would need to be established at a rate of between .50 and .75 for five years. This equates to an additional
50¢ to 75¢ for every $100 of taxable purchases. Added to the current Contra Costa County sales tax rate of
9.25%, this would result in a City of Concord sales tax rate between 9.75% and 10% for five years. Adoption
of an increase to the local sales tax rate for general municipal services requires a majority vote of the
electorate (50% plus one).
In California there are approximately 100 cities and counties with local sales tax measures, and many more
special districts and counties. In fact, 90% of the State’s population resides in at least one district that has a
local sales tax (transactions and use tax). In Contra Costa County there are currently three cities with a local
sales tax: El Cerrito, Pinole and Richmond. Additionally, the cities of El Cerrito and Antioch have placed
local sales tax measures on their November 2010 ballots.
Local sales tax measures have enjoyed recent popularity because constituents feel that the cost increment is
low, it is not a property-based tax, out-of-town visitors share in the cost, and the sales tax is not applied to
groceries or prescription medication.
Utility User Tax

A utility tax is a tax on utilities provided to properties or individuals. A utility user tax can be applied to
a broad variety of utilities, including cellular and landline phone services, cable, satellite, trash, sewer,
water, gas and electric services. The Council would have discretion to decide what rate to propose in a
ballot measure and to which services it would apply.
In order to estimate the rate necessary for a utility user tax to produce between $8 and $10 million for
five years, staff has assumed Concord’s tax would mimic the recently adopted City of Hayward utility
user tax. The Hayward utility user tax applies to natural gas and electricity, phone service - land lines
and cellular, and cable. Were Concord to adopt a similarly structured measure, the tax rate would need
to be set between 4% and 5%, for five years.
Adoption of a utility user tax requires a majority vote of the electorate. This type of funding mechanism
was not the preferred method when Concord constituents were surveyed in January. Were the voters to
pass a utility user tax, the companies that provide the services would collect the tax and remit it to the
City.
IV. Evaluation of Potential Revenue Options

The following table and discussion evaluates the three revenue options in greater detail. For evaluation
purposes, staff considered the following factors as most important for deciding amongst the three choices:
stability of the revenue, participant diversification (does the tax affect a broad or narrow range of people),
likelihood of voter support, impact on low and fixed-income individuals, impact on the business community
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(including retailers, office tenants, and industrial users), and impact on the resident community (including
homeowners and tenants of rental properties). Staff recommends a revenue option which is stable, has broad
participant diversity, enjoys high voter support, and has the least impact on businesses, residents, and low and
fixed income residents.
Criterion Parcel Tax Sales Tax Utility User Tax

Purchasers of Retail
Concord Property Concord Utility
Primary Payers Taxable Goods in
Owners Customers
Concord
Voter Requirement 66 2/3% 50% plus one 50% plus one
Stability Highly stable Moderately stable Highly stable
Participant Diversity Low High Moderate
Likelihood of Voter Low High Low
Support
Impact on Low and High (if they own their Low High
Fixed Income home)
Impact on Business Low Low High
Community
Impact on Resident Moderate to High Moderate to Low High
Community
Primary Payers:
Parcel tax is paid by all owners of real property semi-annually as a part of the property tax bill, and
therefore includes all types of land uses including residential, commercial and industrial properties.
Sales tax is paid by purchasers of retail taxable goods from businesses located in Concord (an
exception is purchasers of motor vehicles; only those registering a newly purchased motor vehicle in
Concord would pay the increased tax, regardless of where the vehicle was purchased).
Utility user tax would be paid by all Concord customers of gas/electric, telephone, cellular and cable
utilities.
Voter Requirement:
In accordance with Proposition 13, a parcel tax would require a yes vote of two-thirds (66 2/3%) of the
voting electorate for passage.
An increase in the sales tax rate, and the institution of a utility user tax, for general municipal services
would require a majority vote (50% plus one) of the voting electorate for passage.
Stability:
A parcel tax would have high stability due to the fact that it would be assessed upon a fixed number of
parcels in the City which would not change significantly from year-to-year. As an assessment on real
property, the City would realize substantially the same amount of revenue from one year to the next.
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As sales tax is paid only on the purchase of taxable goods from businesses in Concord, this revenue
would fluctuate in response to changes in the local, state and national economy, as well as the
relocation of retailers into and out of the City’s boundaries. As the economy continues to fluctuate, the
City would see both positive and negative variations in this revenue source.
A utility user tax would have medium to high stability due to the fact that all utility customers would
be required to pay the tax each month as a part of their utility bills. While some utility bills will
fluctuate through the year in response to the seasons (i.e., gas/electric), overall utility bills do not
change much on a year-to-year basis except to increase as rates change.
Participant Diversity:
A parcel tax would apply only to property owners in Concord. In some cases, the cost of a parcel tax
may be passed on to tenants (i.e., office tenants), but the primary source for this revenue would be
owners of real property in the City. A parcel tax would have the fewest number of payers relative to
the other revenue options.
Sales tax is paid on a wide variety of goods, excluding (primarily) groceries and medicine. It is
therefore a highly diversified source of revenue. A sales tax would be paid by a wide variety of
individuals, including residents, local businesses, and workers in the City, and individuals from
outside the City who purchase taxable goods in Concord. Sales tax on motor vehicle purchases would
be paid only by individuals registering the vehicle in Concord, regardless of where the vehicle was
purchased. The sales tax would be paid by the highest number of payers relative to the other revenue
options, and therefore has the most participant diversity of the three options.
Utility user tax, if applied to gas/electric, telephone, cellular and cable bills, would be paid only by
Concord resident users and Concord business users of those utilities. Consequently, there would be
fewer numbers of utility tax payers than sales tax payers.
Likelihood of Voter Support:
Community surveys in Concord, as well as actual results from other parcel tax elections in California
over the last twenty years, indicate that parcel taxes are consistently the least favored source of new
revenues by voters. As noted above, only 56% of Concord respondents favored this option in a
January 2010 survey, approximately 11 points below the necessary passage rate.
Recent community surveys in Concord indicate strong support for a limited duration, emergency sales
tax measure at the mid-sixty percentiles for a simple majority requirement measure. In addition, actual
results from numerous sales tax elections in California over the last twenty years show consistent
strong support by city electorates. For example, in the June 2010 election, five cities proposed local
sales tax measures, and all five passed. A sixth sales tax measure was adopted in the City of Cotati in a
special April 2010 election.
Recent community surveys in Concord indicate very weak support for a utility user tax measure.
Additionally, actual election results for recent utility tax measures in California suggest only
lukewarm support, even for the reauthorization of existing utility user taxes.
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Impact on Low/Fixed Income:

As a parcel tax would apply to all properties in the City, the impact on property owners who are low
income and/or on a fixed income would be very high. This tax would particularly impact senior
citizens who own property, many of whom are on a fixed income and would not have the option of
avoiding the tax unless the City built in an exemption for low-income residential property owners.
A sales tax increase would be paid only by purchasers of taxable goods in Concord. Because low
income and fixed income individuals spend a large proportion of their incomes on non-taxable goods
and services, a sales tax increase would not have a significant impact on these individuals. Further,
many purchases subject to sales tax are discretionary purchases, allowing low and fixed income
individuals to minimize the impact of the new tax.
A utility user tax would have a significant negative impact on low and fixed income residents, as they
would be unable to avoid paying the tax on their utility bills.
Impact on Business Community:
A parcel tax would likely have a low impact on the business community, as the majority of the parcel
tax would be collected from residential properties in the City. In some cases, tenants of retail or office
properties may be required to pay a portion of the tax if passed through by property owners.
A sales tax increase would have a low impact on the business community, as the tax would be paid by
purchasers of taxable goods rather than the business itself. Most office and service businesses would
see little impact except for their own purchases of taxable goods in Concord. Anecdotal data from
other California counties where city sales tax measures have been adopted indicates these measures
had virtually no impact on the retail sales volumes in those cities, when comparing periods prior to
and after adoption of a sales tax.
A utility user tax could have a high impact on the business community, as office buildings, retail
centers and institutional uses (i.e., hospitals) are generally large consumers of electricity and phone
services. The increased cost of these utilities would likely be passed through to tenants where possible.
Impact on Residential Community:
A parcel tax would have a medium to high impact on residents, depending on whether they are
property owners who would have to pay the tax, and if not, whether landlords would be able to pass
through the cost of the tax to tenants through increased rents. As there are many more residential
parcels (35,700) than non-residential parcels (1,700) in Concord, the majority of the parcel tax would
be borne by residents.
A sales tax would have a medium to low impact on residents. It would apply only to taxable purchases
and not to mortgage, other debt payments, utilities, services, medicine and most grocery purchases,
which make up the majority of resident spending. Individuals purchasing a vehicle that is registered in
Concord would pay the increased tax, regardless of whether the vehicle was purchased in Concord or
another city.
A utility user tax would have a high impact on residents, as nearly all residential households consume
the four categories of utilities to which the tax would apply – electric/gas, telephone, cellular and
cable. Most would consider these utilities non-discretionary in today’s society. At a rate of 4%, a
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household with typical utility bills totaling $350 per month would pay $14 per month in utility tax. By
comparison, to pay the equivalent amount through a half-cent sales tax, a household would need to
spend $2,800 on taxable goods per month.
Recommendation:
In summary, based upon these six criteria, the sales tax is the preferred option for a limited duration,
emergency revenue measure. Although subject to greater volatility than either a parcel tax or a utility tax,
the sales tax would be a highly diversified revenue source and would be paid by many users of City services,
both resident and non-resident. It would have the least negative impact on low and fixed-income households, a
low impact on businesses, and a low to moderate impact on residents in general. Additionally, all funds from a
local sales tax measure are required to stay in Concord, providing a relatively stable source of funding to help
maintain local services; no funds can be taken by Sacramento. Finally, a sales tax measure would enjoy the
highest level of voter support and is the preferred funding mechanism of Concord residents, increasing the
likelihood that a ballot measure would be successful. Given the urgency of the City’s budget problem, it is
clear that achieving a successful result in November will be very important if the City is to avoid devastating
cuts to City programs and services in the next year.
Any sales tax measure placed on the ballot should include stringent fiscal accountability measures, including
citizens’ oversight, mandatory financial audits, and yearly reports to the community to ensure the funds are
spent appropriately.
Attachment 2 is a Ten-Year Budget Projection assuming successful passage of a one-half cent sales tax
measure in November, 2010.
V. Summary of Public Outreach Efforts
A comprehensive public outreach effort has been conducted since the first of the year to educate
residents, business owners and employees about the City’s budget challenges, engage them in
conversation about their priorities for City services, collect input and explore solutions that would
address the budget deficit.
In the first four months of 2010, the City Council and staff reached out to residents to gather information
about community priorities for City services. In light of the budget deficit, it was important to
understand which City services were most valued by residents before decisions about service reductions
were made.
In February and March, seven “Living Within Our Means” Workshops were conducted for residents,
employees, the Chamber of Commerce and Concord senior citizens. The goal of the workshops was to
elicit feedback from residents about their priorities for City services. In addition to workshops, a
statistically valid Community Priorities Telephone Survey was conducted in January and a companion
on-line survey was available on the City’s website during the month of March. Respondents to the
telephone survey and participants in the workshops identified similar priorities: maintaining public
safety services (911 response time, gang prevention, police patrols) and preservation of the City’s
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infrastructure (streets, storm drains, sewer, parks) as well as after-school and summer programs for
youth and senior services including recreation and nutrition programs.
Respondents were also asked about their interest in a local solution to protect and maintain essential city
services. The survey showed that almost four out of five voters supported balancing the budget at least
in part by a local funding measure.
The community responded very positively to the outreach program with more than 1,350 people taking
part in the workshops, telephone survey or the online survey. Several hundred more sent emails and
letters to the City Council.
In the last three months, a concentrated communications effort has been underway to educate the public
about the potential service reductions that would be necessary due to the depth of the structural budget
deficit and elicit input on the possibility of a revenue measure on the November 2010 ballot.
The City Council conducted a budget workshop in May and two budget hearings in June. More than 20
presentations were made to business organizations, neighborhood associations, service organizations,
City boards and commissions, and community groups, reaching several hundred residents and business
owners. Residents have been educated about the deficit through letters to community leaders, a feature
article in Concord City News, Concord eNews distributions and Community Budget Update mailers.
The clear message expressed by residents through the outreach effort is that they want to protect the
services and programs that they and their families value. When faced with the prospect of additional
service reductions next year, many have asked if there is another option and expressed support for a new
revenue measure. The results of two telephone surveys bear this out. The surveys found that there was
support from approximately two-thirds of respondents for an emergency revenue measure to protect
public safety and other programs of value to residents. (See Attachment 6)
VI. Process for Placing a Revenue Measure on the November 2010 Ballot
Should the Council decide to place an emergency revenue measure on the November 2010 ballot, the
following steps must occur:
July 27, 2010: Council passes resolution 10-72 (Attachment 1), formally placing the measure on the
November ballot. While the final cost will depend upon many factors and cannot be
known at this time, staff estimates that it will cost $30,000-37,000 to place the
measure on the ballot.
August 6, 2010: Primary arguments must be filed with the county through the City offices.
August 13, 2010: Rebutting arguments must be filed through the City offices.
November 2, 2010: Election.
If the local revenue measure passes:

• Concord will enter into two contracts with the State: the first to set up the tax and the second for
ongoing administration.
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• There is a mandatory minimum waiting period of 110 days from voter approval to the beginning of
the first quarter that the tax is collected. This means that a tax passed in November would not
commence collection until April 1, 2011 and the first advance received by the City would not occur
until June 2011. The first full payment would not be seen until the end of September 2011.
If the local revenue measure fails:

• Staff would bring proposed budget cuts to the City Council for consideration in January 2011 with
recommendations for those that should be implemented immediately and those that should be
implemented as part of the FY 2011-12 budget cycle.
VII. Recommendation to Council
As set forth in this report to the Council, the City of Concord has taken bold and aggressive steps to
address the challenge of the continuing State takeaways of more than $33 million and the Great
Recession, which have resulted in a $23 million structural budget deficit. Over the past two years, the
City Council has approved expenditure reductions of over $18 million, reductions of 25 percent of the
City workforce, and strategic reduction of City services in every department. The point has been reached
where further reductions will have devastating, long-term impacts on the community, including public
safety, maintenance, and programs for seniors and youth.
In response to Council direction, staff has analyzed three revenue options which would avoid further
reductions to City services if approved by the voters in November 2010. This analysis revealed that the
half-cent sales tax is the preferred option for a limited duration, emergency revenue measure. The sales
tax would be a highly diversified revenue source and would be paid by many users of City services, both
resident and non-resident. Further, it would have the least negative impact on low and fixed-income
households, a low impact on businesses, and a low to moderate impact on residents in general. Finally, a
sales tax measure would enjoy the highest level of voter support, increasing the likelihood that a ballot
measure would be successful.
Accordingly, staff recommends that the City Council approve the placement of a one-half cent local
sales tax (transactions and use tax) ballot measure on the November, 2010 ballot, by approving
Resolution No. 10-72.
Prepared by: Leslye Asera

Community Relations Manager
Leslye.Asera@ci.concord.ca.us
Prepared by: Peggy Lefebvre

Director of Finance
MLefebvre@ci.concord.ca.us
Daniel E. Keen Prepared by: Valerie Barone

City Manager Assistant City Manager
Dan.Keen@ci.concord.ca.us Valerie.Barone@ci.concord.ca.us
July 27, 2010
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Attachments:
1. Resolution No. 10-72
2. 10-Year Financial Plan Model that Assumes the Passage of the Recommended Sales Tax Measure
3. List of all Budget Cuts Made to Date
4. List of Necessary Budget Cuts if the Remaining Budget Deficit Solved Through Cuts Alone
5. List of Public Outreach on the Budget
6. Survey Results
For More Information on This Report Please Contact: Valerie Barone

Assistant City Manager
925/671-3150
valerie.barone@ci.concord.ca.us
Attachment 1
1 BEFORE THE CITY COUNCIL OF THE CITY OF CONCORD

COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA
2
3 A Resolution Calling for and Giving Notice of a

November 2, 2010 Election on a Proposed Ballot
4 Measure Seeking Voter Approval of a One-Half of
One Percent (0.5%) Transactions And Use (Sales)
5 Tax For Five Years to Fund General Municipal
Services, Establishing the Policies and Procedures for
6 Such an Election and Requesting That the County of
Contra Costa Conduct Such an Election Resolution No. 10-72
7 /
8 WHEREAS, State takeaways and the current recession have resulted in a $23 million decline
9 in City revenues, jeopardizing the Concord community’s essential services including 9-1-1 response,
10 police, senior, street and park maintenance, after-school and youth programs, and other services; and
11
WHEREAS, without additional revenue the City cannot maintain public safety services
12
including 9-1-1 emergency response times, police officers, gang prevention and crime investigation
13
services, and neighborhood police patrols; and
14
WHEREAS, the City needs to maintain after-school programs, anti-gang activities, and
15
recreation programs to keep youth and teens off the streets, out of trouble and away from gangs and
16
drugs; and
17
WHEREAS, Concord has had to cut $18 million in funding to city services, eliminating 25%
18
of the workforce, including police officers, parks, recreation, and maintenance staff, and a local
19
revenue measure would prevent another $5 million in deeper cuts to local services; and
20
WHEREAS, all funds from a local revenue measure must stay in Concord to maintain local
21
services and cannot be taken by the State; and
22
WHEREAS, a local revenue measure would ensure fiscal accountability by requiring
23
independent citizens oversight, mandatory financial audits, and yearly reports to the community; and
24
WHEREAS, at its June 22, 2010 meeting, the City Council adopted a budget for FY 2010-11
25
that recognized the need for additional revenue to maintain and preserve the level of services desired
26
by residents of the City; and
27
WHEREAS, at a public hearing on July 27, 2010, the Council considered calling a special
28
Res. No. 10-72 1
Attachment 1
1 election to seek voter approval of a proposed general transactions and use tax (commonly referred to
2 as a “sales tax”), as authorized by Revenue and Taxation Code section 7285.9; and
3 WHEREAS, after that hearing, the City Council concluded that all of the information
4 presented indicated that, to obtain the revenue necessary to maintain and preserve service levels, the
5 Council should call an election to ask the voters of the City to approve a 5-year local transactions and
6 use tax, the revenue from which could be used to support general municipal services and could not be
7 taken away by the State; and
8 WHEREAS, on the basis of the foregoing, the City Council determined that it was appropriate
9 to place a measure regarding a general transactions and use (sales) tax before the voters at the
10 November 2, 2010 general election; and
11 WHEREAS, the tax, if approved, would be imposed on the sale of tangible personal property
12 and the storage, use, or other consumption of such property. The tax rate would be one-half of one
13 percent (0.5%) (a half cent for each dollar) of the sales price of the property. The tax revenue would
14 be collected by the State Board of Equalization and remitted to the City. The tax would be in effect for
15 5 years, and would then expire automatically, unless extended by the voters. The tax shall be
16 approved if the measure receives at least a simple majority of affirmative votes; and
17 WHEREAS, the Concord City Council is authorized by California Elections Code Section
18 9222 to place measures before the voters; and
19 WHEREAS, Elections Code Sections 9281 through 9287 set forth the procedures for primary
20 arguments in favor of and in opposition to any City measure and for rebuttal arguments; and
21 WHEREAS, on April 27, 2010, the City Council adopted Resolution No. 10-32, calling for
22 the City’s General Municipal Election to be held on the same day as and consolidated with the
23 Statewide Election to be held on November 2, 2010. It is desirable that the election called by this
24 Resolution be consolidated with the General Municipal Election and Statewide Election, and that
25 within the City, the precincts, polling places and election officers of the two elections be the same, and
26 that the Election Division of the County of Contra Costa canvass the returns of the General Election
27 and that the election be held in all respects as if there were only one election.
28
Res. No. 10-72 2
Attachment 1
1 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CONCORD DOES

2 RESOLVE AS FOLLOWS:
3 Section 1. The foregoing recitals are true and correct and are hereby incorporated by
4 reference.
5 Section 2. Pursuant to California Constitution Article XIIIC, Section 2; Government Code
6 Section 53724; and Elections Code Section 9222, the City Council of the City of Concord hereby calls
7 an election at which it shall submit to the qualified voters of the City, a measure that, if approved,
8 would adopt a temporary general transactions and use tax, as authorized by Revenue and Taxation
9 Code section 7285.9. This measure shall be designated by letter by the Contra Costa County Elections
10 Department. Pursuant to Election Code Section 10400 et seq., the election for this measure shall be
11 consolidated with the General Municipal Election to be conducted on November 2, 2010.
12 Section 3. The question to be presented to the voters shall be as follows:
13 To provide funding that cannot be taken by the State and help

protect/maintain Concord’s city services, including 911
14 YES
emergency response times, police officers, gang prevention,
15 crime investigation, neighborhood police patrols, city
streets/pothole repair, senior services and nutrition programs,
16 youth/teen programs, and other general city services shall the
City of Concord enact a half-cent sales tax for 5 years, with NO
17 citizens oversight, mandatory financial audits, reports to the
18 community, and all funds staying local?
19 This question requires the approval of a majority of qualified electors casting votes.
20 Section 4. The ordinance authorizing the general tax to be approved by the voters pursuant to
21 Sections 2 and 3 of this Resolution is as set forth in Exhibit A hereto. The City Council hereby
22 approves the ordinance, the form thereof, and its submission to the voters of the City at the November
23 2, 2010 election, as required by Revenue and Taxation Code section 7285.9. The Board of Supervisors
24 of the County of Contra Costa is requested to order the County Clerk to set forth in the voter
25 information portion of all sample ballots to be mailed to the qualified electors of the City the full text
26 of the Ordinance and to mail with the sample ballots to the electors printed copies of the full text of
27 the Ordinance, together with the primary arguments and rebuttal arguments (if any) for and against the
28 measure, and to provide absent voter ballots for the election for use by qualified electors of the City
Res. No. 10-72 3
Attachment 1
1 who are entitled thereto in the manner provided by law. The Ordinance specifies that the rate of the
2 transactions tax shall be one-half of one percent (0.5%) of the gross receipts of any retailer from the
3 sale of all tangible personal property sold at retail in the City; it specifies that the rate of the use tax
4 shall be one-half of one percent (0.5%) of the sales price of tangible personal property stored, used or
5 otherwise consumed in the City, and that the tax shall be in effect for five years . The State Board of
6 Equalization shall collect the tax from retailers subject to the tax and remit the funds to the City.
7 Section 5. The City Clerk is authorized, instructed and directed to work with the County
8 Elections Division as needed in order to properly and lawfully conduct the election. The ballots to be
9 used in the election shall be in form and content as required by law. The County Elections Division is
10 authorized to canvass the returns of the general municipal election. In all particulars not recited in this
11 Resolution, the election shall be held and conducted as provided by law for holding municipal
12 elections.
13 Section 6. The Board of Supervisors is requested to instruct the County Elections Division to
14 provide such services as may be necessary for the holding of the consolidated election. The election
15 shall be held in all respects as if there were only one election. The City of Concord recognizes that the
16 County will incur additional costs because of this consolidation and agrees to reimburse the County
17 for those costs. The City Manager is hereby authorized and directed to expend the necessary funds to
18 pay for the City’s cost of placing the measure on the election ballot.
19 Section 7. The polls for the election shall be open at 7:00 a.m. on the day of the election and
20 shall remain open continuously from that time until 8:00 p.m. that same day, when the polls shall be
21 closed, except as provided in Section 14401 of the Elections Code of the State of California. The
22 notice of the time and place of holding the election is hereby given, and the City Clerk is authorized to
23 give further notice of the election, as required by law.
24 Section 8.
25 (a) The last day for submission of primary arguments for or against the measure shall be
26 by 5:00 p.m. on August 6, 2010.
27 (b) The last day for submission of rebuttal arguments for or against the measure shall be by
28 5:00 p.m. on August 13, 2010.

Res. No. 10-72 4
Attachment 1
1 (c) Primary arguments shall not exceed three hundred (300) words and shall be signed by
2 not more than five persons.
3 (d) Rebuttal arguments shall not exceed two hundred fifty (250) words and shall be signed
4 by not more than five persons; those persons may be different persons than the persons who signed the
5 primary arguments.
6 (e) Pursuant to California Elections Code Section 9280, the City Council hereby directs
7 the City Clerk to transmit a certified copy of the measure to the City Attorney. The City Attorney
8 shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the
9 effect of the measure on the existing law and the operation of the measure, and transmit the impartial
10 analysis to the Elections Division by August 6, 2010.
11 (f) Pursuant to California Elections Code Section 9285, when the City Clerk has selected
12 the arguments for and against the measure, which will be printed and distributed to the voters, the City
13 Clerk shall send copies of the argument in favor of the measure to the authors of the argument against,
14 and copies of the argument against to the authors of the argument in favor. Rebuttal arguments shall
15 be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately
16 follow the primary argument, which it seeks to rebut.
17 Section 9. The City Clerk is directed to file certified copies of this Resolution with the Board
18 of Supervisors and the County Clerk of the County of Contra Costa, together with the attached ballot
19 measure.
20 Section 10. The jurisdictional boundaries of the City of Concord have not changed since the
21 last general municipal election.
22 Section 11. The approval of this Resolution is exempt from the California Environmental
23 Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal. Code Reg. §§ 15000 et
24 seq., “CEQA Guidelines”). The transactions and use tax to be submitted to the voters is a general tax
25 that can be used for any legitimate governmental purpose; it is not a commitment to any particular
26 action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the
27 meaning of CEQA because it creates a government funding mechanism that does not involve any
28 commitment to any specific project that may result in a potentially significant physical impact on the
Res. No. 10-72 5
Attachment 1
1 environment. If revenue from the tax were used for a purpose that would have either such effect, the
2 city would undertake the required CEQA review for that particular project. Therefore, under CEQA
3 Guidelines section 15060 review under CEQA is not required.
4 Section 12. This Resolution shall become effective immediately upon its passage and
5 adoption.
6 PASSED AND ADOPTED by the City Council of the City of Concord on July 27, 2010, by
7 the following vote:
8 AYES: Councilmembers -
9 NOES: Councilmembers -
10 ABSTAIN: Councilmembers -
11 ABSENT: Councilmembers -
12 I HEREBY CERTIFY that the foregoing Resolution No. 10-72 was duly and regularly
13 adopted at a regular joint meeting of the City Council and the Redevelopment Agency of the City of
14 Concord on July 27, 2010.
15
16 Mary Rae Lehman, CMC

City Clerk
17 APPROVED AS TO FORM:
18
19
Craig Labadie
20 City Attorney
21
Exhibit A – Ordinance 10-3
22
23
24
25
26
27
28
Res. No. 10-72 6
Exhibit A
1 ORDINANCE NO. 10-3

2 AN ORDINANCE AMENDING CONCORD MUNICIPAL CODE CHAPTER 98
(TAXATION), ADDING ARTICLE VI (TRANSACTIONS AND USE TAX) BY
3 IMPOSING A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY
THE STATE BOARD OF EQUALIZATION.
4
5 RECITALS
6 WHEREAS, State takeaways and the current recession have resulted in a $23 million decline
7 in City revenues, jeopardizing the Concord community’s essential services including 9-1-1 response,
8 police, senior, street and park maintenance, after-school and youth programs, and other services; and
9 WHEREAS, without additional revenue the City cannot maintain public safety services
10 including 9-1-1 emergency response times, police officers, gang prevention and crime investigation
11 services, and neighborhood police patrols; and
12 WHEREAS, the City needs to maintain after-school programs, anti-gang activities, and
13 recreation programs to keep youth and teens off the streets, out of trouble and away from gangs and
14 drugs; and
15 WHEREAS, Concord has had to cut $18 million in funding to city services, eliminating 25%
16 of the workforce, including police officers, parks, recreation, and maintenance staff, and a local
17 revenue measure would prevent another $5 million in deeper cuts to local services; and
18 WHEREAS, all funds from a local revenue measure must stay in Concord to maintain local
19 services and cannot be taken by the State; and
20 WHEREAS, a local revenue measure would ensure fiscal accountability by requiring

21 independent citizens oversight, mandatory financial audits, and yearly reports to the community; and
22 WHEREAS, at its June 22, 2010 meeting, the City Council adopted a budget for FY 2010-11
23 that recognized the need for additional revenue to maintain and preserve the level of services desired
24 by residents of the City; and
25 WHEREAS, at a public hearing on July 27, 2010, the Council considered calling a special
26 election to seek voter approval of a proposed general transactions and use tax (or “sales tax”), as
27 authorized by Revenue and Taxation Code section 7285.9; and
28
Ord. No. 10-3 1
1 WHEREAS, after that hearing, the City Council concluded that all of the information
2 presented indicated that, to obtain the revenue necessary to maintain and preserve service levels, the
3 Council should call an election to ask the voters of the City to approve a 5-year local transactions and
4 use tax, the revenue from which could be used to support general municipal services; and
5 WHEREAS, on the basis of the foregoing, the City Council determined that it was appropriate
6 to place a measure regarding a general transactions and use (sales) tax before the voters at the
7 November 2, 2010 general election; and
8 WHEREAS, the tax, if approved, would be imposed on the sale of tangible personal
9 property and the storage, use, or other consumption of such property. The tax rate would be one-
10 half of one percent (0.5%) (a half cent for each dollar) of the sales price of the property. The tax
11 revenue would be collected by the State Board of Equalization and remitted to the City. The tax
12 would be in effect for 5 years, and would then expire automatically, unless extended by the voters.
13 The tax shall be approved if the measure receives at least a simple majority of affirmative votes.
14 THE PEOPLE OF THE CITY OF CONCORD DO ORDAIN AS FOLLOWS:

15 Section 1. The People of Concord find that all Recitals are true and correct and are
16 incorporated herein by reference.
17 Section 2. Concord Municipal Code Chapter 98 (Taxation) is hereby amended by adding

18 Article VI (Transactions and use Tax):
19 Section 98-161. Title. This ordinance shall be known as the Concord Transactions and
20 Use Tax Ordinance. The city of Concord hereinafter shall be called "City." This ordinance
21 shall be applicable in the incorporated territory of the City.
22 Sec. 98-162. Operative Date. "Operative Date" means the first day of the first
23 calendar quarter commencing more than 110 days after the adoption of this ordinance.
24 Sec. 98-163. Purpose. This ordinance is adopted to achieve the following, among
25 other purposes, and directs that the provisions hereof be interpreted in order to accomplish
26 those purposes:
27 A. To impose a retail transactions and use tax in accordance with the
28 provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue
Ord. No. 10-3 2
1 and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the
2 City to adopt this tax ordinance which shall be operative if a majority of the electors
3 voting on the measure vote to approve the imposition of the tax at an election called for
4 that purpose.
5 B. To adopt a retail transactions and use tax ordinance that incorporates
6 provisions identical to those of the Sales and Use Tax Law of the State of California
7 insofar as those provisions are not inconsistent with the requirements and limitations
8 contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.
9 C. To adopt a retail transactions and use tax ordinance that imposes a tax and
10 provides a measure therefore that can be administered and collected by the State Board
11 of Equalization in a manner that adapts itself as fully as practicable to, and requires the
12 least possible deviation from, the existing statutory and administrative procedures
13 followed by the State Board of Equalization in administering and collecting the
14 California State Sales and Use Taxes.
15 D. To adopt a retail transactions and use tax ordinance that can be administered
16 in a manner that will be, to the greatest degree possible, consistent with the provisions
17 of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of
18 collecting the transactions and use taxes, and at the same time, minimize the burden of
19 record keeping upon persons subject to taxation under the provisions of this ordinance.
20 Sec. 98-164. Contract With State. Prior to the operative date, the City shall contract
21 with the State Board of Equalization to perform all functions incident to the administration and
22 operation of this transactions and use tax ordinance; provided, that if the City shall not have
23 contracted with the State Board of Equalization prior to the operative date, it shall nevertheless
24 so contract and in such a case the operative date shall be the first day of the first calendar
25 quarter following the execution of such a contract.
26 Sec. 98-165. Transactions Tax Rate. For the privilege of selling tangible personal
27 property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the
28 City at the rate of one-half of one percent (0.5%) of the gross receipts of any retailer from the
Ord. No. 10-3 3
1 sale of all tangible personal property sold at retail in said territory on and after the operative
2 date of this ordinance.
3 Sec. 98-166. Place of Sale. For the purposes of this ordinance, all retail sales are
4 consummated at the place of business of the retailer unless the tangible personal property sold
5 is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for
6 delivery to an out-of-state destination. The gross receipts from such sales shall include
7 delivery charges, when such charges are subject to the state sales and use tax, regardless of the
8 place to which delivery is made. In the event a retailer has no permanent place of business in
9 the State or has more than one place of business, the place or places at which the retail sales
10 are consummated shall be determined under rules and regulations to be prescribed and adopted
11 by the State Board of Equalization.
12 Sec. 98-167. Use Tax Rate. An excise tax is hereby imposed on the storage, use or
13 other consumption in the City of tangible personal property purchased from any retailer on and
14 after the operative date of this ordinance for storage, use or other consumption in said territory
15 at the rate of one-half of one percent (0.5%) of the sales price of the property. The sales price
16 shall include delivery charges when such charges are subject to state sales or use tax regardless
17 of the place to which delivery is made.
18 Sec. 98-168. Adoption of Provisions of State Law. Except as otherwise provided in

19 this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of
20 Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing
21 with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and
22 made a part of this ordinance as though fully set forth herein.
23 Sec. 98-169. Limitations on Adoption of State Law and Collection of Use Taxes.
24 In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
25 A. Wherever the State of California is named or referred to as the taxing
26 agency, the name of this City shall be substituted therefor. However, the substitution
27 shall not be made when:
28
Ord. No. 10-3 4
1 1. The word "State" is used as a part of the title of the State Controller,
2 State Treasurer, State Board of Control, State Board of Equalization, State
3 Treasury, or the Constitution of the State of California;
4 2. The result of that substitution would require action to be taken by or
5 against this City or any agency, officer, or employee thereof rather than by or
6 against the State Board of Equalization, in performing the functions incident to
7 the administration or operation of this Ordinance.
8 3. In those sections, including, but not necessarily limited to sections
9 referring to the exterior boundaries of the State of California, where the result
10 of the substitution would be to:
11 a. Provide an exemption from this tax with respect to certain
12 sales, storage, use or other consumption of tangible personal property
13 which would not otherwise be exempt from this tax while such sales,
14 storage, use or other consumption remain subject to tax by the State
15 under the provisions of Part 1 of Division 2 of the Revenue and
16 Taxation Code, or;
17 b. Impose this tax with respect to certain sales, storage, use or
18 other consumption of tangible personal property which would not be
19 subject to tax by the state under the said provision of that code.
20 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711,
21 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
22 B. The word "City" shall be substituted for the word "State" in the phrase
23 "retailer engaged in business in this State" in Section 6203 and in the definition of that
24 phrase in Section 6203.
25 Sec. 98-170. Permit Not Required. If a seller's permit has been issued to a retailer
26 under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall
27 not be required by this ordinance.
28 Sec. 98-171. Exemptions and Exclusions.

Ord. No. 10-3 5
1 A. There shall be excluded from the measure of the transactions tax and the use
2 tax the amount of any sales tax or use tax imposed by the State of California or by any
3 city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and
4 Use Tax Law or the amount of any state-administered transactions or use tax.
5 B. There are exempted from the computation of the amount of transactions tax
6 the gross receipts from:
7 1. Sales of tangible personal property, other than fuel or petroleum
8 products, to operators of aircraft to be used or consumed principally outside the
9 county in which the sale is made and directly and exclusively in the use of such
10 aircraft as common carriers of persons or property under the authority of the
11 laws of this State, the United States, or any foreign government.
12 2. Sales of property to be used outside the City which is shipped to a
13 point outside the City, pursuant to the contract of sale, by delivery to such point
14 by the retailer or his agent, or by delivery by the retailer to a carrier for
15 shipment to a consignee at such point. For the purposes of this paragraph,
16 delivery to a point outside the City shall be satisfied:
17 a. With respect to vehicles (other than commercial vehicles)
18 subject to registration pursuant to Chapter 1 (commencing with Section
19 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance
20 with Section 21411 of the Public Utilities Code, and undocumented
21 vessels registered under Division 3.5 (commencing with Section 9840)
22 of the Vehicle Code by registration to an out-of-City address and by a
23 declaration under penalty of perjury, signed by the buyer, stating that
24 such address is, in fact, his or her principal place of residence; and
25 b. With respect to commercial vehicles, by registration to a
26 place of business out-of-City and declaration under penalty of perjury,
27 signed by the buyer, that the vehicle will be operated from that address.
28
Ord. No. 10-3 6
1 3. The sale of tangible personal property if the seller is obligated to
2 furnish the property for a fixed price pursuant to a contract entered into prior to
3 the operative date of this ordinance.
4 4. For the purposes of subparagraphs (3) and (4) of this section, the sale
5 or lease of tangible personal property shall be deemed not to be obligated
6 pursuant to a contract or lease for any period of time for which any party to the
7 contract or lease has the unconditional right to terminate the contract or lease
8 upon notice, whether or not such right is exercised.
9 5. A lease of tangible personal property which is a continuing sale of
10 such property, for any period of time for which the lessor is obligated to lease
11 the property for an amount fixed by the lease prior to the operative date of this
12 ordinance.
13 C. There are exempted from the use tax imposed by this ordinance, the storage,
14 use or other consumption in this City of tangible personal property:
15 1. The gross receipts from the sale of which have been subject to a
16 transactions tax under any state-administered transactions and use tax
17 ordinance.
18 2. Other than fuel or petroleum products purchased by operators of
19 aircraft and used or consumed by such operators directly and exclusively in the
20 use of such aircraft as common carriers of persons or property for hire or
21 compensation under a certificate of public convenience and necessity issued
22 pursuant to the laws of this State, the United States, or any foreign government.
23 This exemption is in addition to the exemptions provided in Sections 6366 and
24 6366.1 of the Revenue and Taxation Code of the State of California.
25 3. If the purchaser is obligated to purchase the property for a fixed price
26 pursuant to a contract entered into prior to the operative date of this ordinance.
27 4. If the possession of, or the exercise of any right or power over, the
28 tangible personal property arises under a lease which is a continuing purchase

Ord. No. 10-3 7
1 of such property for any period of time for which the lessee is obligated to lease
2 the property for an amount fixed by a lease prior to the operative date of this
3 ordinance.
4 5. For the purposes of subparagraphs (3) and (4) of this section, storage,
5 use, or other consumption, or possession of, or exercise of any right or power
6 over, tangible personal property shall be deemed not to be obligated pursuant to
7 a contract or lease for any period of time for which any party to the contract or
8 lease has the unconditional right to terminate the contract or lease upon notice,
9 whether or not such right is exercised.
10 6. Except as provided in subparagraph (7), a retailer engaged in
11 business in the City shall not be required to collect use tax from the purchaser
12 of tangible personal property, unless the retailer ships or delivers the property
13 into the City or participates within the City in making the sale of the property,
14 including, but not limited to, soliciting or receiving the order, either directly or
15 indirectly, at a place of business of the retailer in the City or through any
16 representative, agent, canvasser, solicitor, subsidiary, or person in the City
17 under the authority of the retailer.
18 7. "A retailer engaged in business in the City" shall also include any
19 retailer of any of the following: vehicles subject to registration pursuant to
20 Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code,
21 aircraft licensed in compliance with Section 21411 of the Public Utilities Code,
22 or undocumented vessels registered under Division 3.5 (commencing with
23 Section 9840) of the Vehicle Code. That retailer shall be required to collect use
24 tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft
25 at an address in the City.
26 D. Any person subject to use tax under this ordinance may credit against that
27 tax any transactions tax or reimbursement for transactions tax paid to a district
28 imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of
Ord. No. 10-3 8
1 the Revenue and Taxation Code with respect to the sale to the person of the property
2 the storage, use or other consumption of which is subject to the use tax.
3 Sec. 98-172. Amendments. All amendments subsequent to the effective date of this
4 ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use
5 taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue
6 and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue
7 and Taxation Code, shall automatically become a part of this ordinance, provided however,
8 that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
9 Sec. 98-173. Enjoining Collection Forbidden. No injunction or writ of mandate or

10 other legal or equitable process shall issue in any suit, action or proceeding in any court
11 against the State or the City, or against any officer of the State or the City, to prevent or enjoin
12 the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation
13 Code, of any tax or any amount of tax required to be collected.
14 Sec. 98-174. Annual Audit; Citizens’ Oversight. By no later than December 31st of
15 each year after the operative date, the city's independent auditors shall complete a report
16 reviewing the collection, management and expenditure of revenue from the tax levied by this
17 Article. Additionally, there shall be a committee consisting of no fewer than five members of
18 the public to review and report on the receipt of revenue and expenditure of funds from the tax
19 authorized by this Article. The committee members shall be either Concord residents or
20 representatives of Concord businesses. Prior to the operative date, the City Council shall
21 adopt a resolution establishing the composition of the committee, setting the terms of office of
22 the committee members, and defining the scope of the committee’s responsibilities, which at a
23 minimum shall include reviewing the annual auditor’s report and making recommendations to
24 the City Council for use of the tax revenue. The committee’s report and recommendations
25 shall be completed by a date to allow for it to be considered as part of the annual budget
26 process. The committee’s report and recommendations shall be a matter of public record and
27 shall be considered by the City Council at a public meeting. Also prior to the operative date,
28 the City Council shall appoint at least a quorum of the members of the committee; and the
Ord. No. 10-3 9
1 Council shall complete the appointment of members of the committee by the end of fiscal year
2 2011.
3 Sec. 98-175. Termination Date. The authority to levy the tax imposed by this
4 ordinance shall expire on the fifth anniversary of the last day of the calendar quarter preceding
5 the operative date.
6 Section 3. The findings for this ordinance in compliance with the California Environmental
7 Quality Act (“CEQA”) are the same as those set forth in the City’s Resolution No. 10-72 calling for
8 an election on this Ordinance. The CEQA findings in Resolution No. 10-72 are incorporated herein
9 by reference.
10 Section 4. If any provision of this ordinance or the application thereof to any person or
11 circumstance is held invalid, the remainder of the ordinance and the application of such provision to
12 other persons or circumstances shall not be affected thereby.
13 Section 5. This Ordinance relates to the levying and collecting of the City transactions and
14 use taxes and shall take effect immediately.
15
16
17
Guy S. Bjerke
18 Mayor
19 ATTEST:
20
21 Mary Rae Lehman

City Clerk
22
23
(Seal)
24
25
26
27
28
Ord. No. 10-3 10
1
Ordinance No. 10-xx was submitted to the People of the City of Concord at the November 2,
2
2010, general municipal election. It was approved by the following vote of the People:
3
YES:
4
NO:
5
Ordinance No. 10-xx was thereby adopted by of the voters at the November 2, 2010, election
6
and took effect upon adoption of a resolution declaring the results of the election at a regular joint
7
meeting of the City Council and Redevelopment Agency held on [month d, yyyy], by the following
8
vote:
9
AYES: Councilmembers -
10
NOES: Councilmembers -
11
ABSTAIN: Councilmembers -
12
ABSENT: Councilmembers -
13
I HEREBY CERTIFY that the foregoing is a true and correct copy of an ordinance duly and
14
regularly adopted by the People of the City of Concord, California.
15
16
17 Mary Rae Lehman, CMC

City Clerk
18 1480366.5
19
20
21
22
23
24
25
26
27
28
Ord. No. 10-3 11
Attachment 2
Attachment 3
City of Concord Budget Reductions (2008 to 2010)
In light of the severe economic recession, City Council and the City Staff have been working diligently
for several years to address the need for reductions in service levels in light of declining revenues.
Because the City has a tradition of long range fiscal planning, the City Council and staff began to
immediately address the budget challenges when they first appeared in FY 2008-2009. Below is an
explanation of the steps the City has taken:
• The FY 2008-2009 budget was developed recognizing that a recession was beginning to occur
and that measures would be necessary for the budget to remain in balance. As a result, $2.3
million was cut from the budget, and, for the first time, $1.8 million in reserves was used to
balance the budget. The recession soon proved to be much deeper than originally anticipated.
• In November 2008, City staff began work addressing the budget deficit. City department heads
were asked to make budget reduction recommendations. Administratively, most non-labor
operating expenditure budgets were immediately lowered to FY 2007-08 levels. Additionally, a
budget reduction task force composed of City employees was created and charged with looking
for ways to reduce expenditures, increase revenues and/or enhance efficiencies.
• In January 2009, City staff recommended and Council adopted approximately $4.0 million in
revenue enhancements and budget reductions. Additionally, the Council modified its budget and
fiscal policy to lower the City’s operating contingency and other reserves to 15 percent of
operating expenditures; previously it had been 30 percent. Updated revenue and expenditure
projections indicated that an additional $5.2 million in revenue enhancements or expenditures
reductions would be required in FY 2009-10 to achieve the new 15 percent reserve target by the
end of the Ten-Year planning period. To allow additional time for staff and Council to
strategically assess revenue and expenditure projections, staff recommended, and the Council
implemented, a three year phase-in of budget reductions. Due to the time value of money, this
approach effectively increased the required additional budget reductions from $5.2 million to
$6.2 million.
• In April 2009, the budget reduction task force completed its work and produced the task force
report, which consolidated over 1,000 ideas into 250 actionable items. The vast majority of these
ideas have already been implemented or are being considered for implementation this year. A
handful of the ideas can only be addressed through negotiations, and the remaining were found to
be infeasible at this time.
• In June 2009, the City recognized that revenues had decreased further than projected and that its
remaining structural deficit had climbed from $6.2 million to $13.7 million. The Council
adopted a budget reduction phase-in strategy of $4.0 million in cuts for FY 2009-10, an
additional $5.0 million in FY 2010-11, and $4.7 million in FY 2011-12. The proposed budget
City of Concord Budget Cuts (2008-2010)
Page 2 of 8
reductions are cumulative. The $4 million in FY 2009-10 cuts included non-sworn staff
furloughs, benefit concessions by non-sworn management and an early retirement incentive
program. The early retirement program was the primary tool for creating the vacant positions
included in the budget reduction strategy. By offering an incentive for employees to retire, it
was hoped that most of the vacancies created would be positions that would not need to be filled
thereby generating significant budget savings over time. In addition, the early retirement
incentive allowed the City to spread the costs of the incentive over a five-year period. The early
retirement program was successful, with 64 individuals retiring. As a result, the number of
necessary layoffs was significantly reduced to eight.
• In April 2010 the City implemented an extensive outreach effort to ascertain the community’s
service priorities. The outreach effort incorporated a statistically valid telephone survey, a web
survey and five “Living Within Our Means” Community Workshops. The information obtained
through those efforts has been used by staff to guide the decisions regarding the budget cuts and
revenue enhancements incorporated into this proposed FY 2010-11 budget.
• As of May 2010 the national and local economies continue to be in recession, resulting in further
revenue declines beyond those previously projected. General Fund revenues are expected to be
$3.8 million less in FY 2010-11 than projected last year for the same time period. Reduced sales
and property tax revenues, the City’s primary sources of General Fund revenues, make up the
lion’s share of this reduction. As a result the estimated remaining budget deficit for the 10-Year
planning period has increased to approximately $13 million from the $9.7 million projected last
year.
• In June 2010, the City reached agreements with all of its executive, represented and
nonrepresented employees, resulting in $3.35 million in wage and compensation concessions.
Police officer and manager unions agreed to give back the scheduled 5 percent pay raise over the
next year by paying 5 percent toward retirement costs and pick up half of all future health
insurance increases. Local 29, Local 1 and the City’s non-represented employees all agreed to
continue last year’s reduction of 5 percent through 13 furlough days, forego raises, and pick up
half of all future health insurance increases. All non-sworn employees will contribute 5 percent
of their salary towards retirement costs by the end of the two year contract with a portion paid in
year 1, stepping up to a full 5% by year 2.
• In June 2010, the City Council adopted the 2010-11 City Budget, which included staff and
program reductions of approximately $5 million. Following is a summary of specific reductions
and enhancements made from Fiscal Year 2008-09 to 2010-11.
Budget Reductions and Enhancements Summary – Fiscal Year 2008-09 to 2010-11
2008-09 - $4.1 million

• Eliminate Community Action Corporal Position
• Eliminate Senior Building Inspector
Page 3 of 8
• Eliminate Program Aide

• Eliminate Finance Administrative Clerk III Position
• Eliminate Two Police Department Administrative Secretary Positions
• Eliminate Vacant Lead Dispatcher Position
• Eliminate Two Police Department Dispatcher Positions
• Eliminate Two Police Department Forensic Specialist Positions
• Eliminate Vacant Traffic Signal Technician
• Eliminate Vacant Maintenance Worker Position
• Eliminate Vacant Custodian Position
• Reduce Consultant Contracts
• Reduce Administrative Support Hours
• Reduce Plan Check Services
• Reduce Part-time Clerical Support
• Reduce Part-time Administrative Support
• Reduce Part-time GIS Support
• Reduce Part-time Desktop Publishing Support.
• Reduce Police Department Intern Program by two authorized positions
• Reduce Vacant Police Department Call-Taker Position
• Reduce Vacant Police Department Community Specialist-Records
• Reduce Part-time Police Department CSI Technician
• Reduce Contract Police Department Family Violence Victim Advocate
• Eliminate the Contract Crime Analyst Position
• Reduce Part-time Contract K-9 Trainer
• Cancel 2009 Leadership Academy
• Realize Savings from Holiday Furlough Days
• Reduce Standalone Printer Replacement
• Delay Records Management System Replacement
• Reduce Funds for the Senior Transportation Program
• Reorganization Engineering Division
• Allocate Staff Costs Appropriately to Restricted Funds
Page 4 of 8
• Reduce Employee Training Programs

• Allocate Planning Staff as appropriate to RDA funds
• Rent Reduced Due to Office Move
• Reduce Liability Reserves
• Reduce Citywide Survey Frequency
• Realign Senior Transportation Program
• Reassign Full-Time staff, Eliminate Part-Time Staffing at Keller House
• Reduce after-school program support to Mt. Diablo Unified School District
• Recognize unfunded mandate reimbursements
• Appropriately Allocate Finance Staff to CIP Program
• Reduce Recruitment expenditure
• Discontinue support for standalone printers
• Extend Enterprise system software to 12 years from 10 years
• Appropriately Allocate City Management Staff Costs to RDA funds
• Appropriately Allocate City Attorney Staff Costs to RDA funds
• Appropriately Allocate Planning Staff Costs to RDA funds
• Appropriately Allocate Planning Director Staff Costs to RDA funds
• Eliminate Police Department Street Smart TV program
• Eliminate Community Prosecutor Program
• Reallocate Parking Services unit resources
• Increase Traffic Enforcement Activities
• Reduce Police Department Overtime Usage
• Reduce Facility Maintenance Services
• Extend Vehicle fleet useful life
• Reduce Fuel budget
• Reduce Inflation Assumption
Fiscal Year 2009-10 - $4 million
• Eliminate One Building Plans Engineer Position

• Eliminate Three Building Inspector Positions
Page 5 of 8
• Eliminate One Permit Center Technician

• Eliminate One Associate Civil Engineer Position
• Eliminate One Construction Inspector
• Eliminate Two Assistant Civil Engineer Positions
• Eliminate One Neighborhood Services Specialist Position
• Transition Nuisance Abatement Legal Support to In-house Staff
• Eliminate Administrative Services Staff Half-Time Position
• Eliminate Two Duplicating/Offset Printer Positions
• Eliminate CRS Staff On-Site at the Keller House
• Decrease CRS Marketing Budget
• Eliminate Funding for Teen After-School and Summer Programs
• Eliminate General Fund Support for Community Service Grants
• Reduce hours at the Concord Senior Center to Four Days a Week
• Reduce Support for Special Recreation Program
• Eliminate Recreation Customer Service Coordinator Position
• Close Meadow Homes Pool
• Eliminate Purchasing Division Administrative Clerk II and Buyer Positions
• Eliminate on Accountant I Position
• Reorganize the Treasury Division
• Reorganize IT Desktop Support
• Reduce IT Software Related Costs
• Eliminate One Planner and One Assistant Planner Position
• Close Two Field Offices and Consolidate Operations in Headquarters Building and Southern Field
Office
• Eliminate PD Captain and Administrative Lieutenant Positions
• Reduce PD Overtime Expenditures by $100,000
• Eliminate Senior Crime Analyst Position
• Eliminate Two Administrative Clerk II Positions in PD Records
• Eliminate the Victim Violence Advocate Position
• Staff City Jail during Peak Periods Only
• Optimize Deployment of Crossing Guards
Page 6 of 8
• Decrease Size of PD Special Enforcement Team (SET) and Special Investigation Bureau (SIB)
Units
• Reorganize Supervision in Parks
• Decrease Fleet Maintenance Service Levels
• Reduction in Administrative Support at the Corp Yard
• Reduction in Park Maintenance in Connection with Reduced Water Usage
• Reduce Maintenance Staff at Pool in conjunction with Upgraded Chlorine System
• Appropriately assign cost of Public Works Support of the Thursday Night Farmer’s Market and
Music to Redevelopment Agency (RDA)
• One Time Equipment Auction Savings (revenue)
• Privatize Custodial Service
• Reduce Building Maintenance Service Levels
• Privatize Street Tree Services
• Suspend Traffic Calming Program
• Reduce Frequency of Residential Sweeping to Once a Month
• Eliminate City Sponsored Neighborhood Cleanups and Rely on Concord Disposal
Fiscal year 20010-11 –$5.6 million
• Reduce Community Service Desk Hours

• Reduce Part Time Hours in the Jail
• Reduce PD Crime Analysis Part Time Hours
• Implement Citation Sign-Offs Program
• Reduce Crossing Guard Contract
• Reduce PD Canine Team by One Canine and Handler
• Eliminate PD SWAT pagers
• Establish a Franchise Fee for Tow Operators Within the City (revenue)
• Reduce Police Officer Trainee Part Time Hours
• Reduce PD Overtime by $100,000
• Manage Dispatch Hours
• Eliminate Vacant Community Action & Awareness Corporal position
• Freeze of Two Vacant Police Officer Positions
Page 7 of 8
• Close Police Southern Field Office

• Implement Cost Recovery for Services Provided by Transportation Staff (revenue)
• Eliminate General Fund Subsidy to Stormwater Program
• Extend Useful Life of Vehicles by 25,000 Miles
• Eliminate all Part-time Custodial Positions
• Defer Building Maintenance Repairs and Replacement
• Eliminate the Vacant Administrative Analyst Position (ADA Coordinator)
• Eliminate Two Vacant CIP Construction Inspector Positions
• Eliminate One Parks Lead Worker and Two Landscape Gardener Positions
• Reduce Part-time Parks Seasonal Staff by 50%
• Reduce Parks Supplies Budget by 27%
• Eliminate the Vacant Maintenance Utility Mechanic Position
• Reallocate Costs to Other Funds As Appropriate
• Reduce the Number of Umpires Provided per Adult Softball League Game from Two Umpires to
One
• Eliminate the Contribution to the Mt. Diablo Collaborative for Academics, Recreation &
Enrichment for Students (CARES) After School Program
• Reduce General Fund Support for Community Grant Program
• Redesign Camp Concord Operations to Emulate the Business Practices of an Enterprise Operation
• Downgrade One Senior Recreation Program Manager to Program Manager
• Eliminate One Program Manager Position
• Eliminate Vacant CRS Administrative Assistant Position
• Reduce Part-time Class Registration Clerk Support
• Adjust Cost Allocation as Appropriate
• Reorganize the Department Management Structure
• Terminate the Provisional Appointment of the Neighborhood Services Supervisor and Revert the
Position to a Neighborhood Services Specialist
• Host Maintenance Work Order System in the Cloud (Cloud Computing)
• Replace Existing PBX based Telephone System with Voice Over Internet Protocol
• Implement Managed IT Print Services
• Reorganize IT System Programming & Document Services Support
Page 8 of 8
• Simplify IT Desktop Management Approach

• Eliminate Maintenance Services Radios (Public Works & Engineering)
• Change Local and Long Distance Telephone Service Provider
• Lease Instead of Purchase Mobile Data Computers (MDCs) in Police Vehicles
• Reduce Lawson System Replacement Value by $1.5 Million
• Extend Desktop Computer Replacement by One Year to Five Years
• Enhance Business Licenses Compliance and Enhancement Program (revenue)
• Eliminate Vacant Finance Account Clerk III Position
• Eliminate Vacant Finance Budget Analyst Position
• Reduce the Employee Assistance Program (EAP) Budget to Reflect Fewer Budgeted Full Time
Employees (FTE)
• Reduce Recruitment Budget to Reflect Lower City Staffing Level
• Reduce Employee Development Training to Fund Mandated Training Only
• Reduce Employee Service Recognition Awards
• Eliminate Two Vacant Human Resources Analyst II positions
• Realize Savings By Changing Records Storage Vendors
• Allocate Existing Administrative Staff to Support Grant Funded Base Reuse Efforts
• Reduce the City Council Travel Budget
• Reduce Video Services Coordinator to Half-Time
• Eliminate Part-Time Clerical Support
• Reduce Funds for Staff Development
• Miscellaneous Operating Expenditure Reductions
Attachment 4
MEMORANDUM
Date: May 11, 2010
TO: Honorable Mayor Bjerke and Members of the City Council
FROM: Daniel E. Keen, City Manager
SUBJECT: Chart of Additional Program Reductions/Fee Increases Necessary to Resolve

the Remaining Structural Budget Deficit
During Council’s budget discussion at their April 13, 2010 meeting, Mayor Bjerke asked staff to
provide information on what additional program reductions would be necessary to resolve the
remaining budget deficit in one year. The recommended budget for Fiscal Year (FY) 2010-11
which has been submitted to Council, represents the second year of the City’s three-year “Living
Within Our Means” budget strategy, and does not fully resolve the budget deficit until FY 2011-
12. The recommended FY 2010-11 budget proposes $6.4 million dollars of program cuts, new
revenue, and employee concessions. Notably, it does not include lay-offs for regular employees.
A deficit of $6.8 million dollars remains to be resolved in FY 2011-12. Council will be
evaluating its options for resolving the remaining deficit over the next year. Clearly, the solution
lies in a combination wage and benefit concessions, program and service reductions and new
revenue—the exact balance between the three is what needs to be resolved.
The attached table represents a truly bleak picture and includes the elimination of 35 full time
filled positions and almost $1.4 million in part-time employees and other direct program support.
I am not recommending these cuts as part of the Fiscal Year 2010-2011 budget; they are
provided to the Council for the purpose of clarifying the level of impact that would occur if we
attempted to resolve the entirety of the budget deficit through cuts alone.
In preparing the attached list, the executive team took great pains to be realistic. However, given
the short time frame available to prepare this list, the proposals have not been fully vetted as
would be necessary for a formal budget proposal.
CITY OF CONCORD
Attachment 4
ADDITIONAL REDUCTIONS NECESSARY
TO RESOLVE REMAINING BUDGET DEFICIT
SOLELY THROUGH EXPENDITURE REDUCTIONS
Est'd General Fund

Deficit Reduction
Police (000's)
The level of services will be reduced with the elimination of all
District Commands and the Field Office concept, as well as the
1 Eliminate District Commander Program dedicated downtown officer. Staff reduced would include one 992
lieutenant, two sergeants, one officer and one community
services officer.
The elimination of two officers from the SET team will lower the
Reduce size of Special Enforcement Team
2 level of service by slowing down the response to major crimes 276
(SET)
and by providing less backup for staffing shortages.
With the elimination of two Administrative Clerk II's, the level of
Reduce administrative support in the Records service will decrease as these support functions will be spread
3 157
Unit and the Investigations Unit. among remaining staff including sworn personnel and
dispatchers.
Reduce School Resource Officer (SRO) The level of service to the schools will decrease as two less
4 274
program. officers provide support to the schools in the district.
The level of traffic safety enforcement in the City will decrease
5 Reduce Traffic Enforcement 739
with the elimination of two traffic officers.
6 Elimination of Crossing Guard services No crossing guards would be provided for schools. 98
The level of service provided by the financial crimes unit will
7 Reduce staffing in Financial Crimes Unit 168
decrease because there will be one less officer to respond.
The level of service provided by the Special Victims Unit will
8 Reduce staffing in Special Victims Unit. decrease because there will be one less officer to provide 177
support for the program.
Page 1 of 4
CITY OF CONCORD
Attachment 4
Est'd General Fund

Deficit Reduction
Public Works and Engineering (000's)
The Senior Administrative Analyst position and fleet
Reorganize and shrink management of various management will be eliminated; service levels would decrease.
9 181
programs
Reduce engineering services in the Permit The Assistant Engineer will be eliminated and customer service
10 132
Center. levels would decrease.
The elimination of the Traffic Signal Technician will result in a
11 Reduce maintenance of the traffic signals. reduction in the level of service in the maintenance of traffic 108
signals.
The maintenance level of service in the City's parks and
medians will be reduced by the elimination of positions (4
12 Reduce maintenance for parks and medians. 934
landscape gardeners, 3 general laborers), part-time support
and annual plants.
General Fund resources can be saved by assigning costs to
more restrictive, though eligible, funding sources. However,
13 Reassign costs to other Funds 298
there would be impacts to the programs and services funded by
the other funds.
The level of tree trimming service will decrease to reflect only
14 Tree trimming reduction emergency tree trimming work. 100
Eliminate vacant Carpenter position and upgrade a
Reorganize Facility Maintenance positions and Maintenance Worker II to a Maintenance Facilities Technician.
15 180
reduce service levels Reduce consultant contracts. The level of service will decrease
as less specialized experts will be responsible for the workload.
The level of service provided in the maintenance of city
buildings will decrease as maintenance will be deferred unless
16 Defer Maintenance on Buildings 214
a safety issue is discovered or viable energy projects will be
included in the ESCO program.
The level of service in providing custodial service to city offices
17 Reduce frequency of office custodial service 100
will decrease by cleaning only 1-2 days per week.
Page 2 of 4
CITY OF CONCORD
Attachment 4
Est'd General Fund

Deficit Reduction
Community & Recreation Services (000's)
The level of service provided at the Senior Center will decrease
18 Reduce staff at Senior Center 67
based upon the elimination of a program aide.
The level of service provided for classes and summer programs
Reduce classes and summer programs for
19 will decrease with the elimination of a recreation program 107
children.
coordinator.
Community Development
Multi-family rental properties would not be inspected until the
Suspend and reorganize the Multi-Family
20 program was reorganized. One permit technician position 74
Inspection Program.
would be eliminated.
The level of service provided by Neighborhood Services for
21 Reduce Neighborhood Services proactive code compliance will be decreased with the 213
elimination of two neighborhood services specialists.
The level of service provided in the Permit Center will be
22 Reorganize and reduce the Planning Division 141
decreased with the elimination of a senior planner.
Assign staff to work on the Concord Naval This work is appropriately charged to the Reuse Project either
23 82
Weapons Station General Plan amendment. to be grant funded or paid for by the Redevelopment Agency.
Implement or increase planning fees for a variety of activities in
26 Increase Various Fees $ 219
the Planning Division
Information Technology
27 Decrease IT systems support Selected mission critical systems maintenance will decrease. 78
Reduce funds available to implement required mission critical
Reduce implementation of system
28 system upgrades and implement system improvements and 30
improvements and upgrades
fixes.
Elliminate hardware and software where feasible. Will likely
29 Decrease IT equipment available to employees 15
result in a minor degradation of efficiency.
Finance
The level of service in providing payment to City vendors will
30 Pay City invoices on a bi-weekly basis. decrease, with the reduction of an Accounts Payable employee 93
The level of service provided to business license customers and

Reduce business license revenue generation
31 others paying bills to the City will decrease, and less revenue 30
efforts
will be generated
32 Reduce purchasing support Downgrade position and provide less purchasing support 11
Page 3 of 4
CITY OF CONCORD
Attachment 4
Est'd General Fund

Deficit Reduction
Human Resources (000's)
The employees will not receive financial recognition for their
33 Discontinue Employee Anniversary Gifts 10
service tenure
Employees will no longer have access to crisis and life
34 Eliminate Employee Assistance Program 37
counseling through this program
Office of the City Manager

The level of service managing the records retention program,
35 Reduce support for Records Retention Program which is required by law, will decrease with the elimination of an 82
Administrative Clerk II.
The level of service to the City will decrease with the
cancellation of this contract which provides up-to-date
36 Eliminate lobbyist contract 36
information on the activiites of the State Government in
Sacramento.
The level of service will decrease as mail management will be
37 Reduce intercity Mail Services. decentralized with the elimination of the part-time mail clerk. 38
The level of service will decrease as printing management will

Reorganize the management of printing be decentralized with the elimination of the printing services
38 48
services. supervisor. Additionally, revenue will be lost.
Customer service levels would decrease with the elimination of

Reduce Council, City Manager, and Assistant an administrative support position
39 93
City Manager administrative support
Citywide
Reduce Operating Expenditures (supplies, staff Various reductions to operating supplies throughout the
40 234
development, etc.) organization will resut in decreased efficiency.
TOTAL DEFICIT REDUCTION MEASURES $7 Million
Page 4 of 4
Attachment 5
2010 Community Feedback and Budget Outreach
A comprehensive public outreach effort has been conducted since the first of the year to
educate residents, business owners and employees about the City’s budget challenges,
engage them in conversation about their priorities for City services, collect input and
explore solutions that would address the budget deficit.
The effort has been conducted in two phases. Phase I reached out to residents to gather
information about community priorities for City services. In light of the budget deficit, it
was important to understand which City services were most valued by residents before
decisions about service reductions could be made.
Phase II of the process included a concentrated communications effort to educate the

public about the potential service reductions made necessary by the depth of the
structural budget deficit and elicit input on the possibility of a revenue measure on the
November 2010 ballot.
Phase 1 – Feedback on Community Priorities

At the beginning of the year in his state-of-the-city address, Mayor Bjerke spoke about
the impact of double digit reductions in sales tax and property tax to the City’s general
fund and the resulting structural deficit. He invited the business community to participate
in upcoming public workshops and submit comments to the City Council.
In February and March, seven “Living Within Our Means” Workshops were conducted
for residents, employees, the Chamber of Commerce and Concord senior citizens. In light
of reduced revenues and the potential need for service reductions, the goal of the
workshops was to elicit feedback from residents about their priorities for City services.
The information collected was used to develop the FY 2010-11 budget, with special
consideration given to protecting services identified as highest priorities by residents.
Residents were invited to the workshops through a postcard mailer to every business and
residential address in Concord, ads in local newspapers, postings on the City’s website,
news releases, electronic eNews notifications and notices on the City’s cable TV channel.
The feedback from participants was collected at the workshops, expressed priorities were
compiled into data tables and a comprehensive report was presented to the City Council
in April.
Community Outreach Summary
Page 2 of 7
In addition to workshops, a statistically valid Community Priorities Telephone Survey

was conducted in January and a companion on-line survey was available on the City’s
website during the month of March. Respondents to the telephone survey selected the
following top priorities in these categories:
Public Safety Services and Facilities Priorities
The following Public Safety Services and Facilities emerged as the top priorities:
 911 services (96%)
 Crime investigation services (90%)
 Gang prevention (88%)
 Neighborhood police patrols at night (88%)
 Downtown police patrols at night (82%)
General Services Priorities

The services and facilities that emerged as the top priorities to maintain include:
 Traffic signal maintenance and repair (87%)
 Storm drains and sewer services (85%)
 City streets and roads, pothole repair (80%)
 Street lights (79%)
 Inspection services that ensure construction meets building and safety codes (73%)
Recreation Services and Facilities Priorities

The following Recreation Services and Facilities emerged as top priorities:
 After-school and summer programs for youth and teens (76%)
 Youth sports and recreation programs (71%)
 City parks, playgrounds and athletic fields and courts (69%)
 City community centers and the Concord Senior Center (68%)
 Preschool programs (63%)
 Senior services and recreation programs (65%)
Planning and Economic Development Priorities

The economic development program to help bring new businesses to Concord received
the highest rating (66%) in this category.
Respondents were also asked about their interest in a local solution to protect and
maintain essential city services. The survey showed that almost four out of five voters
supported balancing the budget at least in part by a local funding measure.
Page 3 of 7
The community responded very positively to the outreach program with more than 1,350
people taking part in the workshops, telephone survey or the online survey. Several
hundred more sent emails and letters to the City Council.
City employees were also included in the process of defining service priorities. Two
“Living Within Our Means” workshops were conducted for employees. In addition, the
entire employee population was encouraged to participate in City Manager’s Budget
Stability Task Force effort, which collected, studied and implemented (where possible)
suggestions that preserved core services while either reducing costs or increasing
revenue. Over 1,100 suggestions were submitted by employees, which were consolidated
into 240 actionable ideas. Approximately 200 of the ideas have been implemented.
The City Council received a quarterly budget update and a summary of the public
outreach efforts on April 13. Community priorities expressed by participants in Phase I
were considered in developing the proposed budget for FY 2010-11.
Phase 1 Outreach Calendar
January 2010
Jan. 19-23 Community Priorities Telephone Survey conducted
Jan. 20 Mayor’s State-of-the-City address and City budget update delivered to
business community at annual Mayor’s Luncheon
February 2010
Feb. 9 Postcard invitation for “Living Within Our Means Community
Workshops” mailed to residents
Feb. 11 “Living Within Our Means Workshop” held for City employee managers
Feb. 12 Meeting held with commercial property manager about impact of property
tax reassessments
Feb. 27 “Living Within Our Means Community Workshop” – Concord Senior
Center
March 2010
March 1-31 Online Community Priorities Survey available on City’s website
March 3 “Living Within Our Means Community Workshop” – Centre Concord
March 4 “Living Within Our Means Workshop” held for City employees
March 10 Budget presentation made to Todos Santos Business Association
March 16 “Living Within Our Means Community Workshop” – Cambridge
Elementary School
Page 4 of 7
March 2010 (Contd.)

March 17 “Living Within Our Means Workshop” held for Concord Chamber of
Commerce
March 25 Meeting with County Assessor held to discuss impact of property
devaluation and impact to City’s property tax revenue
March 29 “Living Within Our Means Workshop” held for Concord senior citizens
April 2010
April 10 “Budget and Community Outreach” web page launched on City’s website
at www.cityofconcord.org
April 13 Presentation on the budget made to local reporters
April 13 Quarterly budget update presentation made to the City Council with report
on outreach efforts including input from workshops, surveys and
communications from residents
Phase II – Community Budget Update and Feedback

At the annual Budget Workshop in May, the City Council and residents heard the most
recent City budget revenue figures, which showed that revenues had continued to decline.
The City Council heard reports from staff outlining the service reductions necessary to
balance the budget, and heard comments from the public.
Thirteen speakers addressed the City Council during the public comment period and
provided feedback about the value of neighborhood preservation programs, Camp
Concord and the Concord Community Pool.
The workshop was publicized through ads in local newspapers, news releases, Concord
eNews, on the City’s website and cable TV channel.
The City Council conducted two public budget hearings, on June 1 and June 22. During
these meetings, budget update presentations were made. More than two dozen speakers
commented on proposed service reductions, many seeking support for specific programs.
In June and July, City Council members and staff undertook an extensive public outreach
campaign to educate all sectors of the community about the City’s budget deficit, which
will require either more cuts to City services, additional revenue or a combination of
both. More than 20 presentations were made to business organizations, neighborhood
associations, service organizations, City boards and commissions, and community
groups.
Page 5 of 7
In Phase II, more than 1,000 residents received direct information from the City Council
or City staff through the Budget Workshop and Hearings, Community Budget Update
presentations, telephone survey, and letters. Thousands more residents have been
educated about the City’s budget deficit through televised coverage of the Budget
Workshop and Budget Hearings, letters to community leaders, a feature article in
Concord City News, Concord eNews distributions and Community Budget Update
mailers.
Phase II Outreach Calendar
May 2010
May 5 Concord eNews announcing Budget Workshop and Budget Hearings is
distributed to over 2,000 email subscribers
May 11 Budget Workshop - City Council hears presentation on the budget’s
structural deficit and potential impacts to City services, takes public
comment
June 2010
June 1 First Public Budget Hearing - City Council hears report and takes public
comment
June 7 Letter is sent to community leaders outlining City’s budget challenge and
impacts to City services as a result of the structural deficit
June 7 Community Budget Update discussion held with Sunvalley Shopping
Center management
June 9 Community Budget Update presentation made to downtown business and
property owners (Todos Santos Business Association)
June 10 Community Budget Update postcard sent to residents
June 15 Community Budget Update presentation made to Senior Citizen Club
Board
June 16 Community Budget Update presentation made to the Concord Planning
Commission
June 17 Community Budget Update presentation made to Sunrise Rotary
June 17 Community Budget Update presentation made to the Chamber of
Commerce
June 18 Concord eNews reminding residents of second Budget Hearing is
distributed to over 2,000 email subscribers
June 22 Second Public Budget Hearing - City Council takes public comment and
adopts FY 2010-11 budget
June 23 First of two meetings of City Manager’s Ad Hoc Advisory Group
Page 6 of 7
June 23 Budget information distributed at Dana Estates National Night Out

celebration
June 24 Second letter sent to community leaders following June 22 adoption of the
budget
June 24 Community Budget Update presentation made to Monument Community
Partnership Board of Directors
June 29 Community Budget Update presentation made to Concord auto dealers’
General Managers
June 28 Concord City News with feature budget article mailed to residents
June 30 Community Budget Update presentation made to Concord Diablo Rotary
July 2010
July 2 Community Budget Update mailer sent to residents
July 6 Concord eNews announcing adoption of FY 2010-11 budget is distributed
to over 2,000 email subscribers
July 6-11 Community Revenue Measure Feasibility Telephone Survey conducted
July 8 Community Budget Update presentation made to Colony Park
Neighborhood Association
July 13 Community Budget Update presentation made to Estates Neighborhood
Association
July 13 Community Budget Update presentation made to Sun Terrace
July 14 Community Budget Update presentation made to Concord Parks,
Recreation and Open Space Commission
July 16 Community Budget Update presentation made to Rotary Club of Concord
July 19 Second of two meetings of City Manager’s Ad Hoc Advisory Group held
July 21 Community Budget Update presentation made to Concord Kiwanis Club
June 21 Community Budget Update presentation made to Canterbury Village
July 22 Community Budget Update presentation made to Concord Design Review
Board
July 22 Community Budget Update presentation made to Cambridge
Page 7 of 7
Feedback from residents

The clear message expressed by residents through the outreach effort is that they want to
help in some way preserve and protect the services and programs that they and their
families value most. High on everyone’s priority list is public safety, followed by
maintenance of the City’s infrastructure (streets, parks, facilities), and programs for
children and senior citizens.
The community responded to this outreach through participation at City Council
meetings, workshops and presentations as well as through letters, emails and telephone
calls to the City Council. Much of the response expressed dismay at the general state of
the economy and its personal impact on the respondent and his or her family. However,
many expressed the fact that they value City services and understand the pressures that
the economic recession has had on the City’s ability to provide these services. Some
suggested that they would support a limited-time revenue measure to preserve high-
priority programs.
The results of two telephone surveys seem to bear this out. The surveys found that there
was support from approximately two-thirds of respondents for an emergency, five-year,
half-cent sales tax to protect public safety and other programs of value to residents.
Attachment 6
MEMORANDUM
July 14, 2010
TO: Daniel Keen, City Manager, City of Concord
FROM: Bryan Godbe, President, Godbe Research
RE: 2010 Revenue Measure Feasibility Survey – Summary of the Results
A statistically valid and representative survey was conducted to assess voter support for a local revenue
measure in November 2010 to protect and maintain city services within the City of Concord.
The City of Concord commissioned Godbe Research to conduct a telephone survey to assess potential voter
support for a half-cent sales tax measure to provide local funding that cannot be taken away by the State to
limit additional budget cuts and protect and maintain city services.
The average interview time was approximately 15 minutes, and interviews were conducted from July 6
through July 11, 2010. A total of 400 voters who reside in the City of Concord participated in the survey, and
the study parameters resulted in a margin of error of plus or minus 4.9 percent. The survey sample is
representative of Concord voters in terms of gender, age, and other key demographic characteristics.
The survey results indicate strong support for a local revenue measure among likely November 2010 voters,
and Godbe Research recommends that the City of Concord move forward with placing a measure on the
ballot.
• At the beginning of the survey, voters heard a summary of a half-cent sales tax measure that replicates the
language that would be placed on the ballot. In response, 66 percent of the voters indicated support,
whereas just 29 percent were opposed and the remaining 5 percent were undecided.
• The survey then presented additional, balanced information on the potential local revenue measure,
including services and facilities that could be maintained by the measure. Support remained statistically
level after voters had heard this information. More specifically, fully 64 percent of the voters indicated
support, whereas 31 percent were opposed and 5 percent were undecided.
• When accounting for the margin of error for the study, Godbe Research can conservatively estimate that
support for a half-cent sales tax measure among all likely November 2010 voters is not below 59 percent –
well above the simple majority required in this election.
The results reveal that voters’ priorities align with the funding needs of the City of Concord. Regarding the
funding that the measure would provide, voters most support the maintenance of the following:
• 911 emergency response times (85% favorable response);
• Police officers (81% favorable response);
• Gang prevention and crime investigation services (77% favorable response);
• Neighborhood police patrols (77% favorable response);
• Senior services, including recreation and nutrition programs (73% favorable response);
• City streets and pothole repair (72% favorable response);
• City parks, playgrounds, and athletic fields and courts (72% favorable response); and
• After-school and summer programs for youth and teens (70% favorable response).

Concord City Council (CA) Considers New Tax July 27

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Concord City Council (CA) Considers New Tax July 27

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4.

REPORT TO MAYOR AND COUNCIL

TO THE HONORABLE MAYOR AND COUNCIL:

DATE: July 27, 2010

SUBJECT: REVENUE MEASURE FEASIBILITY STUDY

The Great Recession

II. Actions Taken in Response to the Deficit

• Elimination of crossing guards at multiple locations

III. Budget Balancing Options

Additional Expenditure Reductions

• Closing or severely reducing hours at Cowell Pool

Potential Revenue Options

Local Sales Tax Increase

Utility User Tax

IV. Evaluation of Potential Revenue Options

Criterion Parcel Tax Sales Tax Utility User Tax

Impact on Low/Fixed Income:

V. Summary of Public Outreach Efforts

If the local revenue measure passes:

If the local revenue measure fails:

VII. Recommendation to Council

Prepared by: Leslye Asera

Prepared by: Peggy Lefebvre

Daniel E. Keen Prepared by: Valerie Barone

For More Information on This Report Please Contact: Valerie Barone

1 BEFORE THE CITY COUNCIL OF THE CITY OF CONCORD

3 A Resolution Calling for and Giving Notice of a

7 taken away by the State; and

10 November 2, 2010 general election; and

1 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CONCORD DOES

13 To provide funding that cannot be taken by the State and help

23 give further notice of the election, as required by law.

26 by 5:00 p.m. on August 6, 2010.

28 5:00 p.m. on August 13, 2010.

2 not more than five persons.

10 analysis to the Elections Division by August 6, 2010.

16 follow the primary argument, which it seeks to rebut.

3 Guidelines section 15060 review under CEQA is not required.

16 Mary Rae Lehman, CMC

1 ORDINANCE NO. 10-3

11 services, and neighborhood police patrols; and

20 WHEREAS, a local revenue measure would ensure fiscal accountability by requiring

24 by residents of the City; and

27 authorized by Revenue and Taxation Code section 7285.9; and

7 November 2, 2010 general election; and

14 THE PEOPLE OF THE CITY OF CONCORD DO ORDAIN AS FOLLOWS:

17 Section 2. Concord Municipal Code Chapter 98 (Taxation) is hereby amended by adding

21 shall be applicable in the incorporated territory of the City.

27 A. To impose a retail transactions and use tax in accordance with the

5 B. To adopt a retail transactions and use tax ordinance that incorporates

8 contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

13 followed by the State Board of Equalization in administering and collecting the

14 California State Sales and Use Taxes.

25 quarter following the execution of such a contract.

2 date of this ordinance.

11 by the State Board of Equalization.

17 of the place to which delivery is made.

18 Sec. 98-168. Adoption of Provisions of State Law. Except as otherwise provided in

22 made a part of this ordinance as though fully set forth herein.

25 A. Wherever the State of California is named or referred to as the taxing

27 shall not be made when:

2 State Treasurer, State Board of Control, State Board of Equalization, State

3 Treasury, or the Constitution of the State of California;

4 2. The result of that substitution would require action to be taken by or