A major challenge to our City is balancing the budget. With lower-than-expected Sales Tax and Transit Occupancy Tax (TOT) revenues, the unplanned multi-million-dollar expenditure necessitated by the mandatory arbitration award regarding police salaries, pending unexpected PERS pension fund contribution increases, State take-aways and unfunded mandates, and the general economic situation, Council must cut the budget and stretch remaining City dollars. When residents voted for Measure Y, the sales tax increase, they put their trust in the City to use the money generated as promised during the campaign. We have a duty to uphold those promises and maintain our 20% reserve, even as we struggle with a fiscal picture that is less than rosy. As a businesswoman, mediator and former Council Member with over twenty years of involvement in City issues, I am well qualified to guide the city through the next budget process, difficult as it may be.