TO: The Honorable Mayor and City Council Members

FROM: Robert S. LaSala, City Manager

SUBJECT: Service Level Reductions Survey Results

DATE: April 25, 2003

COPIES: ELT Members

I am enclosing a report that describes key findings from a survey that was conducted earlier this month regarding residents' preferences for reducing City service levels or increasing taxes. As you recall, we contracted with The Gelfond Group to complete this survey as part of our efforts to develop budget strategies to resolve the City's continuing budget crisis.

I think that you will find the survey results and key findings very interesting as you consider recommendations to reduce services and levels of service, and potential increases to fees, charges, and local taxes. I plan to discuss the survey results and key findings as part of staff's presentations on May 2^nd and May 6^th.

Please let me know if you have any questions or need additional information before these dates.