1. Weathering The Financial Storm California Contract Cities Association Fall Seminar Oxnard, California October 15, 2011

2. Joseph P. Buchman Burke Williams & Sorensen LLP 444 S. Flower Street Suite 2400 Los Angeles, CA 90071 www.bwslaw.com (213) 236-2872 (direct) (213) 236-2700 (fax) [email_address]

11. Summary of City Revenues Source: State Controller’s Cities Annual Report for Fiscal Year ending 6/30/2009 (2/3/2011).

12. City Revenues: Illustration Service Charges (water, sewer, refuse, etc.) 39% Fees 8% State & Fed 10% Not Restricted 36% Debt Service 1% Taxes 3% Lic & Permits 2% Assessments 1% x Utility User Tax 4% Sales Tax 10% Property Tax 11% Other Tax 7% Other 4%

13. Revenue Losses: The California Triple Flip -- Local Sales Tax for Property Tax Decrease Local Sales Tax Rate -0.25% Property Tax in Lieu of Sales Tax State Fiscal Recovery Fund $1.4 Billion Schools State General Fund Increase State Sales Tax Rate +0.25%

19. Summary of City Expenditures Source: State Controller’s Cities Annual Report for Fiscal Year ending 6/30/2009 (2/3/2011).