January 8, 2009;

Earlier this week, a local anti-development organization, "Save Our City Alameda," released a television commercial that makes several misleading claims about the City of Alameda and its finances. The most troublesome claim is that the City of Alameda is on the verge of bankruptcy. This is simply not true.

Like the vast majority of cities and counties in California, the City of Alameda is facing financial difficulties as a result of the severe downturn in the economy. However, the City has prudently reduced its spending to accommodate the decrease in revenues, and it placed a successful measure on the November 2008 ballot to raise the property transfer tax to help pay for general City services.

Kevin Kennedy, the elected City Treasurer said, "It is irresponsible and counter-productive to make a claim that the City is on the verge of filing for bankruptcy. We are facing the same economic issues that other cities in the state are facing and addressing those issues through current budget- balancing actions and long-term planning."

Interim Finance Director Ann Marie Gallant agreed, noting, "Together, the reductions in spending already made, the anticipated budget cuts for next year, and the increase in the property transfer tax are designed to help the City weather the current economic cycle. Claims that the City is on the verge of filing for bankruptcy are untrue and reckless."

In discussing the commercial, Mayor Beverly Johnson noted, "In these uncertain economic times, when people throughout the area are concerned about keeping their jobs and their homes, it is astonishing that a small group of people would choose to air a commercial that makes false and easily disproved claims about their own city just to try to block an important redevelopment project. This is a time to work together, not to foster dissension."