Last night the Millbrae City Council got a sneak peak at a presentation the community will see Saturday that explains the severity of the city's financial crisis. Millbrae is facing a deficit of $600,000 that could balloon to nearly $2 million by next year. In July, the city will officially go broke if ways are not found to shore up money. The city is looking to residents for suggestions and cuts they find acceptable. The presentation is the first part of the city's "Millbrae Now" plan that aims to educate the public and gain input through a series of meetings. "This is in part a recap of we've been talking about over the last couple of months," said Interim City Administrator Jeff Killian. After hearing about the financial crunch, residents will hear the major options to fix the growing budget gap. The details of the presentation are still being worked out by staff, but Killian was able to present an example of the questionnaire on which the residents will be asked to rate their support of the options. One option is a fire assessment district that would levy a tax on property owners based on their benefit from the fire department. For example, a dense residential apartment complex would require more fire response than a single family home. The apartment complex - under the assessment district plan - would likely pay more each year. Exactly how much each property owner would pay is still unknown. An outside engineer will determine the dollar amount by the end of February or early March, said Killian. Councilmember Linda Larson said the reason the city has been slow to pursue any action because "we don't know what we're supporting yet." The assessment district has garnered attention from the council for the last three months because it only requires a 51 percent majority to pass and can be voted on by mail-in ballot. In this case, only people who respond with a no vote will be counted. If the city feels they have enough support they will likely send out the ballots in April and allow a 45-day window in which people can respond. If passed, the city could have the votes verified Aug. 8. Another option is to pursue a public safety tax. The city was looking at passing a parcel tax that would levy an equal amount to all property owners. However, they have drifted from the idea because it would require a two-thirds majority to pass and couldn't be placed on the ballot until November. Despite its waning interest in the parcel tax, the council is still interested in hearing the public's input. Other major options include raising the sales tax by one-percent for public safety or raising the business license tax. Dana Yates can be reached by e-mail: dana@smdailyjournal.com or by phone: (650) 344-5200 ext. 106. What do you think of this story? Send a letter to the editor: Letters@smdailyjournal.com.

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