Council referrals committee sends grocery-tax revenue impact to full council for Aug. 25 discussion

The Referrals Committee of the City Council on July 28 referred a request to discuss the city’s estimated $2.5 million revenue shortfall from the state repeal of the grocery tax to the full City Council for discussion at its Aug. 25 meeting. Committee members said they wanted the matter placed on the council agenda because the timing is important to the city’s budget process. “I will move that this go to council at the next council meeting, which is August 25,” Council member Newsom said during the meeting. The referral was recorded with a voice vote; the chair declared the ayes have it and the item was referred to the council. Committee members noted the Finance and Budget Committee had already discussed the repeal on July 8 and that timing for council consideration is driven by upcoming budget work. Members discussed committee routing for the item but agreed to place it on the Aug. 25 council meeting agenda so the broader budget process can account for the revenue change. No ordinance, resolution or specific budget action was adopted by the Referrals Committee; the item was simply referred for council discussion. The record of the July 28 Referrals Committee meeting shows the referral was prompted by a request from “Council member Luke” to have the city consider the revenue loss from the state repeal of the grocery tax. The amount discussed in committee was described as a "2 and a half million dollar" hit to city revenues. The full City Council will decide whether to take further action, request analysis from staff, or refer the matter to the Finance and Budget Committee when the item appears on the Aug. 25 agenda.