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The City of Santa Cruz has recently faced an unprecedented budget crisis in the General Fund. In the last 20 months, the City has cut over $7 million from its General Fund, including 60 full-time equivalent positions.

There is every reason to believe that an additional million-dollar cut to the General Fund will have to be made before the end of this year.

We're taking major steps to streamline our City Government. With the cuts have come significant reorganizations within the departments.

We must plan for replacement of the Measure F sales tax before it expires after five years. If the expansion of the Dream Inn into a Convention Center is approved, that promises to help the City with higher collections of Transient Occupancy Tax (TOT).

The Council will consider the latest tax revenues at a September meeting and decide if further cuts or revenue measures are necessary.