HomeMy WebLinkAboutItem 5.3 ABAG GenBusinessMtg
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: April 11, 1994
SUBJECT:
written Communication - Association of Bay Area Govern-
ments (ABAG) General Assembly Business Meeting Items
(Prepared by: Lou Ann Texeira, Asst to the city Manager)
~1) Letter from Revan Tranter, Executive Director, ABAG
dated March 4, 1994, and Program Budget & Work Program
for FY 1994-95
EXHIBITS:
/"2) ABAG' s Proposed Platform on Restructuring Government
~3) League of California cities committee on Local
Government Reform Report
RECOMMENDATION~ ~onsider proposed dues increase. Review and discuss
~)(l~cal government reform proposals.
FINANCIAL With regard to the ABAG FY 1994-95 Budget and Work
STATEMENT: Program, the budget includes a per capita dues increase
in the amount of 2.5%. This would increase the City's
present dues from $3,168 to $3,321 per year. The current
dues include a per capita assessment based on population
determined by the State Controller, along with a $300
membership fee. With regard to the local government
reform proposals, the financial impacts are unknown at
this time. The reports are still in draft form. Once
the reports have been finalized, staff will conduct a
comprehensive cost/benefit analysis of the proposals.
DESCRIPTION: The City of Dublin has received a written communication
from ABAG Executive Director Revan Tranter, transmitting the ABAG Budget
& Work Program for FY 1994-95, along with the ABAG Proposed Platform on
Restructuring Government.
The ABAG FY 1994-95 Budget (Exhibit 1) includes a per capita dues
increase of approximately-2.5%. The proposed dues increase will result
in an increase of $153 for FY 1994-95 for the City of DUblin, based on
the current population of 25,853. This increase is primarily attributable
to Dublin's population growth. In addition to the FY 1994-95 Budget and
Work Program, ABAG has also asked the city to consider the attached
Platform on Restructuring Government (EXhibit 2).
It is increasingly clear that "restructuring" is not simply the latest
fad or buzz word. The problems California faces in terms of the
changing economy and eVOlving society are truly profound. The Dublin city
Council has previously considered several proposals in which the merits
of state and local government restructuring are being debated, including
first, a report from the State LegiSlative Analyst entitled, Making
Government Make Sense, followed by a report from the League of California
Cities Committee on Local Government Reform (Exhibit 3).
ABAG's ProDosed Platform on Restructurina Government
similar to the League's report, the ABAG proposal deals with California's
recent economic downturn and dire fiscal conditions in terms of
restructuring government, its finances and the public services delivered.
The ABAG report was developed by ABAG's own Legislation & Government
Organization Committee. The report will be presented at the ABAG General
Assembly on April 21, 1994. This platform will serve as a starting point
for ABAG;s effort to influence the ongoing restructuring debate and to
prevent Sacramento from balancing the state budget with local revenues.
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COPIES TO:
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ITEM NO.
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Briefly, the ABAG report includes the following principles of reform:
I. GOVERNING PRINCIPLES - The governing principles associated with
restructuring of local government focus primarily on the following:
A. Provide adequate revenue resources to cover program costs;
eliminate unfunded mandates, cost shifts and revenue reductions
B. Develop a client-based approach to delivery of services
C. Redesign programs for greater efficiency, enhanced service
delivery and cost control
D. Implement administrative streamlining, consolidation and
cooperation efforts
E. Align program responsibilities; reduce state and federal
oversight; and enhance local flexibility
II. FUNDING SHIFTS
A. Prohibit funding shifts from the state to local levels (general
and special tax revenues)
III. FUNDING SOURCES - Major funding source issues include:
A. Allocation of revenue to local government
B. Role of State
1. Aggressively pursue all revenues
2. Aggressively pursue Closing tax loopholes
3. Develop new state tax revenues to finance state
responsibilities
4. Appropriately distribute savings reSUlting from administra-
tive streamlining
5. Return fines & forfeitures to local government
IV. FUNDING PRINCIPLES - The basic funding principles include:
A. Decategorize funds used by cities and counties
B. Replace the 2/3 voting requirement for various bonds and taxes
with 55% or 60% majority vote
c. Reconsider Proposition 13
D. State should adopt a multi-year deficit reduction plan
E. Revise methods of calculating and COllecting state income tax
V. PROGRAM AND SYSTEM REFORM
A. Reorganize cities and counties to maximize service delivery
B. Re-establish "home rule"
C. Eliminate "maintenance of effort"
D. Implement various trial court reforms
E. Encourage consolidation of various municipal services including
fire services
F. Standardize and streamline activities, paperwork, etc.
Leaaue of California Cities Committee on Local Government Reform Renort
As indicated above, the DUblin city council previously reviewed the
League's report on local government reform. The League report continues
to undergo modifications. The most recent version (Exhibit 3) continues
to focus on long term strategies and principles with regard to the
structure and finance of local government. Shown below is a recap of the
League's basic principles underlying long term solutions:
1. Reduce the amount of government
2. Be revenue neutral
3. Provide rational realignment of services
4. Establish nexus between service needs and available funding
5. Tie revenue to the economy using broad-based taxes
6. Insure that any new structure is understandable
In addition to the above long term strategies and principles, the League
report also proposes the following recommendations:
1. Maintain current funding levels
2. Implement a multi-year deficit reduction plan
3. Maximize pursuit of federal funds
4. Reduce the vote requirement for general Obligation bonds
5. Enact incentives to downsize government
6. Allow greater flexibility over use of local revenues & administration
7. Implement a state strategic plan
8. Evaluate program effectiveness of regulatory agencies
9. Broaden the tax base
10. Reform benefit assessment laws
11. Revise reorganization laws - Annexations/Incorporations/Spheres of
Influence
12. Control actions of other entities through local planning
13. Establish a task force on local permitting authority
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14. support California Environmental Quality Act (CEQA) Reform
15. Make mandate reimbursement laws meaningful
16. Improve financial reporting
17. Adopt Telecommunications Task Force principles
18. support State audit
Summarv
In summary, the statewide discussions surrounding the concept of local
government reform speak to a broad range of municipal issues. Likewise,
in these statewide discussions, and in both the ABAG and League
proposals, a number of common principles can be found. Briefly, the
common elements contained in the ABAG and League platforms include the
following:
* Reduce the amount of government
* Be revenue neutral
* Rational realignment of services (client-based approach)
* Establish nexus between service needs and available funding
* Improve the existing tax system
In addition to comparable underlying principles, both reports include a
number of similar recommendations, including the following:
o Maintain current funding levels
o Implement a state multi-year deficit reduction plan
o Maximize pursuit of federal funds
o Reduce the vote requirement for general obligation bonds
o Enact incentives to downsize or "rightsize" government
o Allow greater flexibility over use of local revenues and administration
o Evaluate program effectiveness of regulatory agencies
o Broaden the tax base/new state tax revenues
While both reports include a number
also contain several distinctions.
each agency are summarized below:
of common elements, the two reports
The major recommendations unique to
AGAB
- Provide a reliable source of funding for schools
Reconsider Proposition 13
Reexamine methods of calculating and COllecting state income tax
Eliminate "maintenance of efforts" requirements
Implement trial court coordination reforms
Establish time limits on general assistance
LEAGUE
- Expand sales tax base to cover cost of services
Implement a state strategic plan
Reform benefit assessment laws
Revise reorganization laws annexations/incorporations/spheres of
influence
Control actions of other agencies through local planning
Establish a task force on local permitting authority
Support california Environmental Quality Act (CEQA) Reform
Adopt Telecommunications Task Force principles
Support state audit
Recommendations
Both the ABAG Platform and the League report are considered working
documents and both are currently undergoing modifications. At this time,
it is suggested that the City Council discuss the major elements
identified in the proposals. If deemed appropriate, the City council
should also consider taking a position on the overall proposals and/or
specific elements of each plan. Lastly, it is recommended that the City
council consider the ABAG FY 1994-95 Budget and Work Program,
including the issue of a proposed dues increase. city staff will continue
to monitor the status of both reports, along with statewide discussions
surrounding the issue of local government reform.
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ASSOCIATION OF BAY AREA GOVERNMENTS
Mailing Address: . P.O. Box 2050 . Oakland, CA 94604-2050
March 1, 1994
President Torlakson and Members of the
Executive Board
Association of Bay Area Governments
Ladies and Gentlemen:
Budiet Messaie. FY 1994-95
Few people would have envisaged a decade ago that ABAG would today be administering
workers' compensation for an injured firefighter, insuring the actions of a police officer
chasing a suspect, working to construct a biking and hiking trail around the Bay, raising
capital for a group of 25 jurisdictions to fund key capital projects, and sending an
environmental training contingent to Taiwan.
To survive in today's economy, an institution must be useful, flexible and lean. The
programs mentioned above, saving our members and the taxpayers millions of dollars, and
carried out by an agency with only half the staff of the late '70s, show an ABAG that fits
the '90s.
And yet we haven't forgotten our roots. ABAG is still a planning agency, and much of our
work underpins the planning of our sister agency the Metropolitan Transportation
Commission. We hope to get legislative endorsement of our proposed system of sub-
regional planning to deal with the future growth of the Bay Area.
Our finances are tight. In the past two years we have had an overall deficit. Finding the
cash to meet payroll expenses twice each month is a challenge. Membership dues have not
been changed for three years. After discussing the matter with our Finance Committee, I
am recommending that the per capita, dues be increased by 2.5 percent.
Our staff appreciate your past confidence and support, and that of our General Assembly.
We look forward to joining with you again, both to save the taxpayers money and to keep
the Bay Area a desirable place to work and live.
Re n A F. Tranter
Executive Director
Representing City and County Governments of the San Francisco Bay Area
Joseph p, Bort MetroCenter . Eighth & Oak Streets. Oakland. (510) 464-7900 . Fax: (510) 464-7970
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ASSOCIATION OF BAY AREA GOVERNMENTS
Proposed
BUDGET AND
WORK PROGRAM
Fiscal Year 1994-95
This Budget and Work Program was prepared under the direction of
ABAG Executive Director Revan Tranter, with primary assistance from
Joseph Chan, Cathryn Hilliard, Eugene Leong and Marcia Loss
3-1-94
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TABLE OF CONTENTS
Key Policy Guidance and ABAG Highlights
Executi ve Board.............,..................., ............... ........ ............. ........ ............ ............................ ................................ i
Finance & Personnel Committee .. ... ........ ...........................,..............,...... ............ .......................... ....................... ii
Executive Director's Budget Message .............................................................................................................,.....1
Summary of ABAG Services and Accomplishments ............................................................................................3
Financial Highlights
Fiscal Year 1994-95 Operating Budget: Revenues and Expenditures
for Fiscal Years 1991-92 through 1994-95 ............................................................................................................ 7
Fiscal Year 1994-95 Operating Budget: Details of Revenues
for Fiscal Years 1991.92 through 1994-95 ............................................................................................................ 8
Operating Budget By Program Fiscal Year 1994-95 ............................................................................................. 9
Fiscal Year 1994-95 Operating Budget: Revenues ..............................................................,..............................10
Fiscal Year 1994-95 Operating Budget: Expenses .............................................................................................11
Comparison of Revenues by Funding Source,
Fiscal Years 1991-92 through 1994-95 ................................................................,...............................................12
Proposed FY 1994-95 Schedule of Assessments ................................................................................................. 13
Work Program
Work Program FY 1994-95 Funding Notes ......................................................................................................... 16
Regional Planning............................................................. ................................................................................... 17
Information and Data Analysis
Planning Services
- Plan and Project Review
_ Implementing Adopted Growth Management Platform
_ Modifications to California Environmental Quality Act
- Bay Area Economic Forum (BAEF)
- Revised Housing Needs Determination Process
- Water Quality
. Hazardous Waste
Air Quality
Bay Trail Implementation
San Francisco Estuary Project
Earthquake Safety
Intergovernment Computer Network
Education and Other Service Programs ..,..............................................,.............................................................20
Training Center
HAZMACON/Pacific Recyclers Exposition
CivNet Conference
Other Conferences
Technical Assistance/Data Center/Publications
California Office of Emergency Services Support
Financial Services
ABAG PLAN Corp.
Workers' Compensation Administration
Tobacco-Free Education Project
Intergovernmental Coordination and Agency Management ................................................................................ 22
Public Affairs
Intergovernmental Coordination
Legislation
Agency Management
EXECUTIVE tllARD
Supervisor Tom A. Torlakson, President (County of Contra Costa)
Mayor Peter W. Snyder, Vice President (City of Dublin)
Supervisor Mary Griffin, Immediate Past President (County of San Mateo)
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COUNTY OF:
OFFICIAL REPRESENTATIVE
Alameda
Supervisor Mary King
Supervisor Gail Steele
Contra Costa
Supervisor Tom A. Torlakson
Supervisor Gayle Bishop
Marin
Supervisor Brady Bevis
Napa
Supervisor Paul Battisti
San Francisco
Supervisor Willie B. Kennedy
Supervisor Carole Migden
San Mateo
Supervisor Mary Griffin
Supervisor Ted Lempert
Santa Clara
Supervisor Dianne McKenna
Supervisor Rod Diridon
Solano
Supervisor William 1- (Bill) Carroll
Sonoma
Supervisor Tim Smith
CITIES IN THE COUNTY OF:
Alameda
Mayor Peter W. Snyder (Dublin)
Mayor Michael Sweeney (Hayward)
Contra Costa
Council member Gwen Regalia (Walnut Creek)
Mayor Jane A. Bartke (El Cerrito)
Marin
Councilmember Robert Ponarrow (Belvedere)
Napa
Mayor Ed Solomon (Napa)
San Francisco
Mayor Prank Jordan
Kent O. Sims, Mayor's Off. of Econ. Planning
Supervisor Barbara Kaufman
San Mateo
Mayor Pro Tem Doris Morse (Millbrae)
Councilmember Frank J. Pagliaro, Jr. (Burlingame)
Santa Clara
Councilmember Karen Anderson (Saratoga)
Councilmember Paul V. Kloecker (Gilroy)
Solano
Mayor Richard Brians (Dixon)
Sonoma
Councilmember David F. (Dave) Berto (Santa Rosa)
City of Oakland
Councilmember Nate Miley
Vice-Mayor Richard (Dick) Spees
Councilmember Dezie Woods-Jones
City of San Jose
Councilmember Trixie Johnson
Councilmember Joe Head
Councilmember Charlotte Powers
3/1/94
ALTERNATE
Supervisor Keith Carson
Supervisor Edward R. Campbell
Supervisor Tom Powers
Supervisor Jeff Smith
Supervisor Annette Rose
Supervisor Mike Rippey
To Be Appointed
Supervisor Sue Biennan
Supervisor Michael Nevin
Supervisor Michael Nevin
Supervisor Ron Gonzales
To Be Appointed
Supervisor Barbara Kondylis
Supervisor Michael Cale
Mayor Mark Green (Union City)
Mayor Cathie Brown (Livermore)
Councilmember Gretchen W. Mariotti (Pinole)
Councilmember Joyce Hawkins (Orinda)
Councilmember Doug Wilson (Fairfax)
CounciImember Tom Orlando (American Canyon)
Stuart Sunshine
Gail Goldman, Mayor's Off. of Business
To Be Appointed
Vice Mayor Claire L. Mack (San Mateo)
Mayor Madolyn L. Agrimonti (Daly City)
Councilmember WiIlem Kohler (Saratoga)
Council member Gary Fazzino (Palo Alto)
Mayor David A. Fleming (Vacaville)
Mayor Anthony L. Cermak (Sonoma)
Councilmember Sheila Jordan
Councilmember Sheila Jordan
Councilmember Sheila Jordan
Vice Mayor Blanca Alvarado
Councilmember Margie Fernandes
Council member Frank Fiscalini
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FINANCE & PERSONNEL COMMITTEE
Supervisor Mary King (Alameda County), Chair
Mayor Pro Tern Doris Morse (Millbrae), Vice Chair
Supervisor Bill Carroll (Solano County)
Supervisor Rod Diridon (Santa Clara County)
Councilmember Paul Kloecker (Gilroy)
Vice Mayor Richard (Dick) Spees (Oakland)
Ex-Officio Members:
Supervisor Tom A. Torlakson, Presdent (Contra Costa County)
Supervisor Mary Griffin, Immediate Past President
Mayor Peter W. Snyder, Vice President ( Dublin)
3/1/94
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Summary of ABAG Services and Accomplishments
OUR MEMBERS GET HIGH-CALIBER SERVICES AND PROGRAMS
In 1993:
. ABAG and its member cities and counties worked together to protect local government
revenue. As active campaign partners, our members contributed to the successful passage of
Proposition 172 to retain the 1I2~ sales tax to pay for public safety programs.
. More than $48 million was raised to help local jurisdictions finance their projects. In
addition, through the ABAG Finance Authority for Non-Profit Corporations, we helped
counties and cities provide some $150 million in financing to not-for-profit agencies offering
vital services in their communities. ABAG also launched SABR (Special Assessment Bond
Round-up), issuing its first pool for six jurisdictions totalling over $60 million.
Cumulatively, ABAG's Financial Services programs have provided local jurisdictions with
almost half a billion dollars for projects, such as buildings and equipment.
. The ABAG PLAN Corporation, our 29-member cities' self-insurance pooling program,
returned $1.6 million in equity to its members in July because the cities were able to hold
down the number of general liability claims. This program has received national recognition
for its financial stability and risk prevention programs. Since 1990, ABAG PLAN has
returned $8.9 million in premiums to its members for effectively controlling their losses.
During these tight budgetary times, our members have turned their insurance expenditures
into an insurance investment revenue for their cities.
. The Workers' Compensation service made noteworthy strides by adding new member
agencies -- the cities of Belmont, Benicia, Burlingame, Daly City, Redwood City, the East
Bay Municipal Utility District and the Golden Gate Bridge, Highway & Transit District.
Altogether, 23 agencies saved money by having ABAG administer their workers'
compensation claims and provide information on better cost management. Among services
provided in the past year was a series of informational seminars focused on timely issues,
such as medical cost control and understanding the new workers' compensation law revisions
recently adopted by the California legislature.
. Projections 94, the latest in ABAG's biennial forecasts for the region, was released by the
Regional Data Center. The forecasts incorporate the latest Census and economic data,
including the impact of the economic downturn on projected jobs and employed residents. In
addition, the Data Center continuously assembled and released Census figures to local
governments as soon as they became available. Workshops explaining the stream of Census
data were well attended by local officials. The Data Center released a short-term economic
forecast and the long-term projections at separate conferences.
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The ABAG General Assembly last March initiated a STOP/GO campaign and
overwhelmingly adopted a resolution to STOP the property tax transfer away from local
governments as part of the State's budget process. ABAG helped organize a statewide
campaign that resulted in rallies including more than 5,000 local government and
community-based organization representatives on the steps of the Capitol in Sacramento.
The next phase was GO (Government Overhaul). The November General Assembly
delegates passed a resolution calling for a study of all restructuring proposals, resulting in
recommendations to the Governor and Legislature with ABAG in a lead role representing the
position of its members.
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The Regional Planning Committee and staff continued to work on reforming California's
Environmental Quality Act, the housing needs allocation law, and implementing subregional
planning. The goal is to make local government work better by saving money, reducing
redundant or unnecessary documentation and procedures, rewarding jurisdictions for
producing housing, and giving cities and counties leeway to form subregional strategies and
the tools to carry them out.
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ABAG staff prepared a guidebook illustrating what cities and counties can do individually
and collectively to improve air quality. Entitled "Improving Air Quality Through Local
Plans and Programs," the guidebook emphasizes measures that decrease the number and
length of automobile trips. A series of workshops are being planned to introduce the
publication to local planners and policy makers.
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Through the Joint Air Quality Policy Committee and the Executive Board, ABAG worked
with BAAQMD and MTC in completing the State Implementation Plan revisions for the
region, as required by the federal Clean Air Act. The plans submitted note the region's clean
air accomplishments and request redesignation to "attainment" status for meeting the federal
clean air standards.
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The Hazardous Waste Capacity Allocation Committee worked with the State Legislature to
obtain passage of a bill, by Assemblymember Campbell, requiring the Department of Toxic
Substances Control to review Bay Area county hazardous waste plans which had previously
been submitted to the State. In the coming year, the committee will work with the newest
waste generation data released by the State in order to adjust or revise the Regional Capacity
Allocation Plan as appropriate.
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ABAG's Earthquake Preparedness Program started two major projects in 1993. The first will
improve 1992 estimates of the impact of future earthquakes on the region's housing supply.
Estimates of the shelter and other mass care needs will be made. ABAG staff will also be
working with cities and counties to improve their local programs for encouraging retrofitting
of housing to minimize earthquake losses. This work is being funded by the National
Science Foundation. In the second project, ABAG is working to develop ways to provide
earthquake hazard maps, both on paper and in computer files, to local governments. This
project is mainly funded by the U.S. Geological Survey.
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. ABAG staff authored a comprehensive handbook for local governments on seismic retrofit
incentive programs. Designed to help local jurisdictions develop their own programs, the
handbook provides extensive case studies from 17 California cities. It also includes a
discussion of possible financing sources, California's legislative activity in this area, and an
analysis of liability considerations. Half-day workshops were held to assist cities and
counties to develop seismic retrofit incentive programs for oWners of seismically hazardous
structures.
. HAZMACON completed its 10th anniversary presentation concurrently with the Pacific
Recyclers Expo. The 10,000 registrations were the largest so far, and the conference has
become an important venue for state regulatory agencies to inform local governments and
businesses about recent and pending regulations on hazardous materials arid waste
management. Recognizing that public employees and private businesses need to be efficient
with their time, Pacific Recyclers Expo will be now held as part of HAZMACON.
. The ABAG Training Center began offering quarterly hazardous waste operations training for
local governments, as well as continuing to provide a wide array of specialized training on
"land use, financing, hazardous waste and environmental issues.
. The San Francisco Bay Trail, a riding and hiking trail around the San Francisco and San
Pablo Bays, is now 40 percent complete. ABAG assisted localities in securing $9.25 million
in acquisition and construction funds for the project this past year.
. The five-year San Francisco Estuary Project completed its Comprehensive Conservation and
Management Plan. The Plan has been approved by Governor Wilson and EP A Administrator
Carol Browner. ABAG continued to provide administrative and technical support for this
joint EPA, State and.regional project. Local elected officials have been represented on the
Management Committee throughout the program. Implementation will begin in 1994.
WE ARE YOUR REGIONAL PLANNING AGENCY
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ABAG, owned and operated by the Bay Area's local governments, has been designated by
the state as the regional planning agency for the Bay Area.
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The state uses ABAG's populationlhousing/employment projections in determining certain
project grants and allocations. We work carefully with our members to prepare these figures.
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The Housing Needs Determination is produced as required by state law to provide local
jurisdictions with important information for their housing goals. In the past few years,
ABAG assisted members in defending their housing plans before the state Housing &
Community Development agency. ABAG is advocating a legislative proposal developed by
its members to improve the State's housing law and re-orient it to encourage and reward
housing performance. The results of this work were incorporated into the language for AB
1499 (Campbell), the Regional Housing Needs Bill. ABAG continues to work on behalf of
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local governments with the California Association of Councils of Governments (CALCOG)
and the author to shape the final version of the bill.
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Along with MTC and the Bay Area Congestion Management Agencies. ABAG is
coordinating transportation planning activities to strengthen the linkage between
transportation and land use at local, subregional and regional levels.
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By federal law and state designation. ABAG is the regional water quality planning agency
and co-lead agency for federal air quality planning in the Bay Area. ABAG works with the
Bay Area Air Quality Management District and the Metropolitan Transportation Commission
to develop regionwide air quality plans.
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ABAG is the state-designated Areawide Clearinghouse for review of federal grant
applications.
WE PROTECT LOCAL CONTROL
The ABAG General Assembly adopted. by an overwhelming majority. a IS-point Platfonn on
Growth Management that includes these two key components:
. The planning process in California should be broadly coordinated and
integrated at the state. regional, subregional and local levels. Regional.
subregional and local planning will be most effective if the State first
coordinates its oversight so as to provide clear and consistent planning-related
goals and programs. A primary focus should be on reorganization of
responsibilities for efficiency and on consolidation and streamlining at all
levels. The process for achieving this integration should be derived with
input from all levels of government.
. Governance is handled best at the closest level to the governed. Thus the
planning process should be structured so that local issues are handled locally
in general plans. subregional issues are handled at a county or other
subregional level and regional issues only are handled at the regional level.
Moreover. greater efficiency and effectiveness in the planning process is
desired, not a new layer on top of existing agencies.
These features encapsulate the approach ABAG is taking to protect the interests of local
governments in the rapidly changing political environment of California. Assemblymember
Valerie Brown introduced AB 398, the San Francisco Bay Area Coordinated Planning Bill. Its
original language was based on ABAG's Growth Management Platform. We continue to
monitor the bill for consistency with ABAG's approach and offer amendments as necessary.
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ABAG FISC'L YEAR 1994-95 OPERA~G BUDGET
REVENUES AND EXPENDITURES
FOR FISCAL YEARS 1991-92 THROUGH 1994-95
1991-92 1992.93 1993-94 1994-95
REVENUE SUMMARY ACTIJAL ACTIJAL ESTIMATED PROPOSED
(See next page for details)
Federal Contracts 1.184,677 1.572.561 1,198,692 1,163,749
State Contracts :no,242 338,648 347,123 275,000
Other Contracts 85 uno 864,726 802,751 815,636
Service Programs 2,631,796 2,822,815 3,394,161 3,703,000
Membership Dues 928,300 935,598 937,913 977,232
Total Revenues 5,926,825 6,534,348 6,680,640 6.934,617
EXPENSES & CHANGE
IN GENERAL RESERVES
Salaries and benefits 3,246,539 3.517,575 3,953,000 3,997,000
Legal and sub.contractors 1,058,983 1,083.969 715,116 820,500
Equipment and supplies 157,960 114,729 145,000 150,000
Outside printing 264,586 379,035 350,000 360,000
Conference & program facilities 184,405 217,279 220,000 295,000
Depreciation 270,256 262,110 280,000 285,000
Interest 152,037 116,329 125,000 135,000
Building maintenance 124,703 147,460 170,000 180,000
Utilities 3..\,369 32,564 42,000 45,000
Insurance 77,659 65,259 80,000 90,000
Postage 11 '),426 194,519 210,000 220,000
Telephone 7'-),260 74,139 80,000 90,000
Audits 39,784 44,109 46,000 47,000
Board/committee per diem 29,775 39,450 40,000 41,000
Other 177 ,431 183,265 .181,000 157,000
Increase (decrease) (90,348) 62,559 43,524 22,117
in general reserves
Total Expenses & Change 5,926,825 6,534.348 6,680,640 6,934,617
in General Reserves
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ABAG FISC! YEAR 1994-95 OPERATtG BUDGET
DETAILS OF REVENUES
FOR FISCAL YEARS 1991-92 THROUGH 1994-95
1991-92 1992-93 1993-94 1994-95
REVENUES ACTUAL ACTUAL ESTIMATED PROPOSED
FEDERAL CONTRACTS
EPA 205G) 36,296 25,540 0 0
EPA. SFEP 591,586 84~,385 357,061 200,000
MTC.FrA 103,778 122,866 104,112 114,435
MTC.FHWA 405,440 571,533 607,519 576,314
NSF 9,296 0 100,000 93,400
FEMA 38,281 9,237 0 0
USGS 0 0 30,000 29,600
Other 0 0 0 150,000
Subtotal 1,184,677 1,572,561 1,198,692 1,163,749
STATE CONTRACTS
OES 167,834 116,781 125,641 150,000
OSHA 0 25,685 24,371 0
DHS 162,408 191,311 141,982 125,000
SWRCB 0 4,871 55,129 0
Subtotal 330,242 338,648 347,123 275,000
OTHER CONTRACTS
MTC . IDA 466,794 510,338 533,840 560,136
MTC . Bay Trail 96,561 114,974 147,911 150,000
Haz Waste MOU Committee 57,384 57,384 57,400 57,000
Earthquake/Haz Mat 28,000 6,276 10,500 10,000
BAAQMD 33,473 60,651 53,100 38,500
ABAHO 55,200 40,103 0 0
Private Sector Foundations 114,398 75,000 0 0
Subtollll 851,810 864,726 802,751 815,636
SERVICE PROGRAMS
Data Center 128,214 151,677 80,000 100,000
Publications 36,931 34,213 25,000 28,000
Training 98,144 139,140 125,000 125,000
HAZMACONlRecycling 716,254 755,293 765,000 787,000
Financial Services 130,989 100,332 150,000 148,000
Workers ComplBenefits Trust 580,861 737,645 1,262,000 1,310,000
ABAG PLAN Corp. 673,703 733,235 795,711 958,000
Conference Services 27,363 22,340 77 ,000 100,000
Other 239,337 148,940 114,450 147,000
Subtollll 2,631,796 2,822,815 3,394,161 3,703,000
MEMBERSHIP DUES
ABAG Dues (local and cooperating) 928,300 935,598 937,913 977,232
TOT AL REVENUES 5,926,825 6,534,348 6,680,640 6,934,617
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COMPARISION OF REVENUES BY FUNDING SOURCE
FOR FISCAL YEARS 1991-92 THROUGH 1994-95
1991-92 Actual
1992-93 Actual
1993-94 Estimated
1994-95 Proposed
5,926,825
6,534,348
6,680,640
6,934,617
r.2I ABA G Dues (including
Cooperating Memberships)
II Other Local (including Services)
. Federal and State
12
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PROPOSED FY 1994-95
SCHEDULE OF ASSESSMENTS
e
Assessments
"The annual assessment for members of the Association shall be based upon population as determined by the State Controller in
making the most recent allocation to cities and counties pursuant to California Revenue and Taxation Code Section 11005, except
that, beginning in 1987-88, in the case of newly incorporated cities, until such time as an official census is conducted and
population established therewith, the population as estimated by the Executive Director shall be used for assessment purposes."
[ABAG Bylaws, Article IX. D.]
Annual Membership Fee
"The membership fee shall be uniform for all members of the Association and shaH not be less than $10.00 per month or $120 per
year." [ABAG Bylaws, Article IX.F.]
PROPOSED SCHEDULE OF ASSESSMENTS (INCLUDING $300 MEMBERSIDP FEE)
JURISDICTION
POPULATION
12-03-93
COUNTY OF ALAMEDA
Albany
Berkeley
Dublin
Emeryville
Fremont
Hayward
Livennore
Newark
Oakland
Piedmont
Pleasanton
San Leandro
Union City
1,337,126
17,324
104,939
25,853
6,205
183,272
121,064
61,782
39,046
382,739
11 ,046
54,348
71,296
56,753
COUNTY OF CONTRA COSTA
Antioch
Brentwood
Clayton
Concord
Danville
El Cerrito
Hercules
Martinez
Orinda
Pino1e
Richmond
San Pablo
San Ramon
Walnut Creek
855,109
69,572
9,669
8,382
113,227
34,090
23,431
18,618
34,997
17,051
18,172
92,594
26,404
38,880
62,446
13
1993-94
ADOPTED
DUES
($)
77,807
2,202
11,708
3,168
986
17,133
12,744
7,014
4,685
28,229
1,535
6,279
8,104
6,594
52,554
7,791
1,303
1,214
12,360
4,056
2,928
2,366
3,996
2,223
2,253
10,600
3,310
4,426
7,292
~~;' ;{Jo ;:/. ~~'~':':(~; ?+y ~:~\{ :';~::;.: :~'T~:~'~:
,..' ".' '!,?~4~?:$.,:,::
"',PROPOSED'; ''C,',':
:':".::+"j)'uES'!:r::;,,'
. ", .$" ... '.,0,
".. ."". ..".
,,' , " , " ,,>:::\:.,f ,J.:,::!x::
:~J~q~:7::':.:.
";~;<<1~~!iI~~Ji~~~]
>>: ,..," . ...:: ~": ,. >:^"
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PROPOSED SCHEDULE OF ASSESSMENTS (INCLUDING $300 MEMBERSlDP FEE)
. :'1",,'. . ......i994.g~;/:t\:i
.....PROPOSED\>..>
.I)PES"'"
i;~~) ...:. .
..:....'il'.5~:,<~.
"j~~ij~',
~!~~~~i~
...,. :>.,...6;37?t'J..L
. '1.16&...
'. '. ..... ...,;:~.2?~i;:;(.:;::
1993w94
POPULATION ADOPTED
JURISDICTION 12w03w93 DUES
($)
COUNTY OF MARIN 241.265 20,762
Belvedere 2,214 548
Corte Madera 8,459 1,252
Fairfax 7,177 1,107
Larkspur 11,917 1,638
Mill Valley 13,456 1,807
Novato 48.897 5,845
Ross 2.238 548
San Rafael 52.122 6,096
Sausalito 7,430 1,126
Tiburon 8,030 1,189
COUNTY OF NAPA 116,918 12,496
American Canyon 8,400 1,223
Calistoga 4,619 819
Napa 65,569 7,551
St. Helena 5.332 881
Y ountville 3,484 687
CITY & COUNTY OF SAN FRANCISCO
County 752.069 46,823
City 46.823
COUNTY OF SAN MATEO 680,885 43.714
Atherton 7,272 1,120
Belmont 25,056 3,118
Brisbane 3,105 648
Burlingame 27,831 3,413
Colma 1,160 431
Daly City 98.316 11.039
East Palo Alto 24,472 3,074
Foster City 29,249 3,572
Half Moon Bay 10.141 1,426
Hillsborough 11,060 1,540
Menlo Park 29,407 3,591
Millbrae 21,125 2,670
Pacifica 39,080 4,695
Portola Valley 4,293 781
Redwood City 69,917 8,021
San Bruno 40,275 4,814
San Carlos 27,147 3,346
San Mateo 89,355 10,089
S. San Francisco 56,613 6,642
Woodside 5,247 886
14
. ...... .
"12,96'1' . ...
1.282
.....840
~~{~~~*~!
~.1
r;~i';i:::':':;:.;'?~~i:~~~01';::'::i
: 3~228'<"
. 663>:..
il'~13"~'1. ~601:.,;i:
':n.,,",,'
:..:.....::.... ..:......:.:.~.:~~.:;...~....
.~:l.;.::::::+.:;..;.:'(.:~:~~~:,t"...h.
.,. .....;.;';:::::~:~~:.;.i;:;:...
. <: "':'802.:
.::. . ..:8.34:?;:.~"::
.'. '5006'"
.. .. .....:::.+:.'3.:47i/y:.
....,: )0.499 > ': ....:
:;.....,..~.l~~;..:..:.... .'
.. :', .. .~~~:: /" ,': ;.
. . ,.. ','
PROPOSED SCHEDULE OF ASSESSMENTS (INCLUDING $300 MEMBERSIDP FEE)
1993-94
ADOPTED
DUES
($)
e
e
JURISDICTION
POPULATION
12-03-93
COUNTY OF SANTA CLARA 1,563,800 89,385
Campbell 37,105 4,458
Cupertino 41,827 4,983
Gilroy 32,695 3,938
Los Altos 27,040 3,346
Los Altos Hills 7,680 1,161
Los Gatos 28,175 3,459
Milpitas 56,671 6,498
Monte Sereno 3,288 675
Morgan Hill 25,703 3,157
Mountain View 70,047 8,040
Palo Alto 57,324 6,684
San Jose 822,013 50,761
Santa Clara 96,361 10,852
Saratoga 28,390 3,499
Sunnyvale 122,149 12,918
COUNTY OF SOLANO 369,522 27,529
Benicia 26,812 3,306
Dixon 11,824 1,614
Fairfield 85,921 9,745
Rio Vista 3,693 710
Suisun City 24,029 2,986
Vacaville 80,919 9,226
Vallejo 115,873 12,493
COUNTY OF SONOMA 416,278 29,781
Cloverdale 5,409 902
Cotati 6,455 1,001
Healdsburg 9,763 1,402
Petaluma 45,709 5,401
Rohnert Park 38,904 4,657
Santa Rosa 123,806 12,893
Sebastopol 7,367 1, 130
Sonoma 8,607 1,259
Windsor 15,500 1,856
TOTALS $926,418
DUES RATES
First
Second
Next
Remaining Pop.
Actual
0.114
0.108
0.074
0.053
50,000
50,000
1 00,000
15
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WORK PROGRAM
Fiscal Year 1994-95 Funding Notes
Regional Planning - Growth and Development and Environmental Management
(;: Priority Programs for ABAG Dues and MTC Planning Funds
Information and Data Analysis
Plan and Project Review
Implementing Adopted Growth Management Platform
Modifications to California Environmental Quality Act
Bay Area Economic Forum (BAEF)
(;: Federal and State Funded Programs
Revised Housing Needs Determination Process
Earthquake Safety*
Air Quality
Water Quality*
Hazardous Waste
San Francisco Estuary Project*
Tobacco-Free Education Project
Bay Traillmplementation*
Local Government Services
(;: Enterprise Programs - Primarily Self-Supporting
Training Center
Conference Services
Data Center
HAZMACON
Pacific Recyclers Exposition
Intergovernment Computer Network*
Technical Assistance/Data Center/Publications
Financial Services
ABAG PLAN Corp.
Workers' Compensation Administration
Intergovernmental Coordination and Agency Management
o
Priority Programs for ABAG Dues
Public Affairs
Intergovernmental Coordination
Legislation
Agency Management
* ABAG Dues provide local match
16
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REGIONAL PLANNING
Over the years ABAG has established a broad base of staff expertise in policy development and
implementation assistance for many program areas. These capabilities are primarily focused on
assisting local governments in coping with complex regional trends and issues, as well as
providing MTC with in-depth analysis of relationships between land use and transportation plans
and projects and comprehensive planning issues at the local, subregional and regional levels.
Information and Data Analysis(1) - Maintaining the economic, demographic and land use data
base for the region is a critical ABAG responsibility. The data base is the foundation for
developing models that assist MTC, other regional, state and federal agencies, local
governments, congestion management agencies and the private sector in analyzing and
determining the impacts of growth or change on the local economy; the fiscal viability of the
governments is affected by change, as are the corresponding impacts on the physical
infrastructure (transportation and wastewater treatment facilities) that support economic
development in the region.
Staff continues to focus on updating and expanding the data base used for analysis and forecasts.
This task is essential to maintaining the quality of information produced at ABAG, and crucial
for policy analysis. The region's economy is moving into a critical period of slowing economic
growth that will continue for several years. The recession has cost the Bay Area 120,000 jobs
since it began in 1990. In December 1993, the latest revisions to ABAG's 10ng-teml economic
and population forecast were released to local governments and the private sector. During the
coming year, staff will also focus on expanding assessments of major regulatory, land use and
transportation projects in the Bay Area.
PlanninS! Services(l) The following programs summarize priority planning activities. They
include a number of interagency projects carried out with local, regional and state agencies and
the private sector.
Plan and Project Review(1) - Review of Federal grant applications continues under
procedures for State and Areawide Clearinghouse Review established by the state to replace the
former A-95 system. The review staff also sends staff-to-staff letters on draft environmental
documents. These letters comment on the adequacy of information provided to local decision
makers regarding concerns embodied in Regional Plan policies adopted by the General
Assembly. The Clearinghouse staff heads an interagency review team (representatives from
MTC, Caltrans, BAAQMD, and BART) which meets twice a month to exchange information on
proposed major developments and coordinate comments. In addition, specific assistance is
provided to MTC in reviewing the Annual Element of the Regional Transportation Improvement
Program for consistency with adopted regional policies for growth and development.
Implementing Adopted Growth Management Platform (1) In FY 1992-93 the General
Assembly endorsed a "Growth Management Platform". It establishes organizational policies
17
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dealing with coordinated/integrated planning, subregional and regional responsibilities, conflict
resolution, fiscal reform and housing. MTC and ABAG have agreed to develop a planning
strategy which improves the efficiency and cost-effectiveness of existing activities, coordinates
development and conservation policies, emphasizes both subregional and regional planning and
decision making and provides financial and other incentives to achieve compliance with regional
and subregional goals and strategies. This planning effort includes working with each county's
congestion management agency.
Modifications to California Environmental Quality ActC\) - ABAG's Regional
Planning Committee and Executive Board developed suggested changes to the California
Environmental Quality Act to streamline procedures without sacrificing its purpose. Although
the legislature addressed some of ABAG's concerns in laws. developed and signed by the
governor last year, more changes are needed and will be pursued this year
Bay Area Economic ForumC!) The economic development program, cosponsored by
ABAG and the Bay Area Council, continued to build on its successes in its fifth year. The
Forum, most recently, has been focusing on comparative advantage to provide a framework for
economic development in the Bay Area.
Revised Housing Needs Determination Process(3) - The primary emphasis of ABAG's
housing program is on providing input to local jurisdictions in meeting the need for an increase
in the supply and affordability of housing. Under state law ABAG is responsible for determining
the regional need for housing, and each locality's share of that need, for households at all income
levels.
During this last year, ABAG initiated a reform proposal to the housing needs determination
process. This proposal establishes a performance-based system with incentives to localities
which show a record of success in providing their "fair-share" of housing. This year staff will
actively promote legislative reform.
Water Quality(3) - Activities since 1978 have focused on implementing the Regional
Water Quality Management Plan for the San Francisco Bay Area. A project begun in 1993 and
scheduled for completion in December 1994 is the updating of ABAG's Manual of Standards for
Erosion Control Measures at construction sites. This effort, funded partially by a Sec. 205(j)
Clean Water Act grant, will produce a newly relevant document essential to cities' and counties'
compliance with new federal and state stormwater runoff regulations.
Hazardous Waste(3) - ABAG continues to assist counties in implementing countywide
hazardous waste management programs. The memorandum of understanding with all nine Bay
Area counties uses the committee process to assess and adopt "fair share" allocations of wastes
implementing regional and county hazardous waste management plans. The counties and ABAG
have made hazardous waste minimization their number one priority and have presented
educational programs along with disseminating materials to local governments aiding them in the
process of reducing hazardous waste.
18
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.
Air Qualitv(3) -During the year, ABAG worked in cooperation with the Bay Area Air Quality
Management District (BAAQMD) and Metropolitan Transportation Commission (MTC) to
prepare, adopt and submit revisions to the State Implementation Plan (SIP). These SIP revisions
are required by the federal Clean Air Act. As submitted to the California Air Resources Board
for submittal to the U.S. Environmental Protection Agency, the SIP requests redesignation to
"attainment" status for the Bay Area--a significant achievement for the region.
In the coming year, ABAG will work with BAAQMD and MTC to revise the state mandated
Clean Air Plan (CAP) for meeting the far more stringent California air quality standards. The
CAP must document and demonstrate ongoing progress in improving the region's air quality.
Bay Trail Implementation(3) - The San Francisco Bay Trail Project, staffed by ABAG and
jointly funded by ABAG dues and a special allocation by MTC's Regional Measure 1 revenues,
has assisted many shoreline cities in obtaining monies to develop the Bay Trail. Last year alone,
$9.25 million were allocated to local jurisdictions to construct about 12 miles of Bay Trail
around the region. The project has greatly enhanced multi-jurisdictional cooperation, publici
private partnerships, and volunteer support for recreational and environmental projects in the
Bay Area. The Bay Trail project began in 1989 with the adoption of the Bay Trail Plan and
Environmental Assessment and is expected to require a decade to complete.
San Francisco Estuary Project(3) - Under Federal legislation, the Environmental Protection
Agency is sponsoring a major cooperative study of the current and future conditions of the San
Francisco Bay Estuary. The goal of this five-year project was to develop a plan for the
comprehensi ve conservation and management of the estuary, including the control of non-point
sources of pollutants that degrade it. Other sponsoring agencies include San Francisco Bay
Regional Water Quality Control Board (RWQCB), and ABAG. The Plan has been approved by
the Governor and EP A administation. ABAG provides a wide variety of administrative,
managerial, technical and office support services for the project, which is currently managed by
RWQCB and ABAG. The Plan will be implemented beginning in 1994.
Earthquake Safetv(3) - Since 1976, ABAG has provided technical assistance to local
governments in the use of earthquake information as well as successfully advocating important
legislation at federal and state levels. Earthquake hazard mapping, and detailed information
about damage potential, have been developed in five projects funded by the U.S. Geological
Survey. Additional funding to allow local governments to have increased access to the hazard
mapping was obtained from the U.S. Geological Society (USGS). The liability of local
governments for earthquake losses has been examined and a similar estimate for the private
sector completed. In 1991-92, ABAG completed a program, which began in 1988-89, to guide
local government and business programs dealing with hazardous materials and toxic gases in
earthquakes. These efforts were funded by the National Science Foundation and the South Coast
Air Quality Management District. Staff will continue to update existing hazard maps to reflect
information from the October 1989 Lorna Prieta earthquake to the extent funding will allow. An
assessment of the effect that earthquake had on the region's economy was completed in 1991-92.
The effect of Lorna Prieta on the region's housing was detennined in 1992. That effect is being
upgraded and extended to future earthquakes, including the recent Los Angeles quake near
Northridge, as part of a current project funded by the National Science Foundation (NSF).
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Intereovernment Computer Network(2) . The world of information management and
computerization has reached local governments in varying degrees of implementation.
Tremendous opportunities are opening up in citizen access to government information and new
efficiencies in the sharing of data among local government agencies. ABAG staff will endeavor
to establish a voluntary regional computer network for public agencies through grants, donations
and volunteer efforts. To facilitate these efforts, ABAG and the Shirley Heim Organization
(SHO) are jointly organizing a conference and tradeshow, CivNet, for February 1995. It is
intended to introduce to citizens and local governments the new opportunities in citizen access to
government information and new efficiencies in the sharing of data among local government
agencies.
EDUCATION AND OTHER SERVICE PROGRAMS
Trainine Center(2) - Since its establishment, ABAG's Training Center has presented training
courses and workshops on a broad range of timely topics. Courses are taught by experts in areas
such as housing, water quality, hazardous materials, energy, population. projections and
infrastructure financing programs. The curriculum has expanded to include courses in new
approaches for public agency management, risk management, effective planning techniques, and
other specialized technical topics. Registration fees and training contracts jointly cover the costs
of the Training Center.
HAZMACON(2) - ABAG's annual Hazardous Materials Management Conference and
Exposition was held at the San Jose Convention Center in April 1993 with a registration
exceeding 10,000 persons. This three-day event includes conference sessions, training seminars
and exhibits. HAZMACON is designed to educate local government and business employees on
hazardous materials issues, waste disposal, contaminated sites and new regulations.
HAZMACON also serves as an important forum where government and business can meet and
discuss issues of common concern. Based upon a survey of needs of over 1,000 attendees, future
HAZMACON conferences will also address air pollution, industrial waste and solid waste
problems. HAZMACON also will remain in the Bay Area for the foreseeable future.
Pacific Recvclers Exposition(2) - The third annual The Pacific Recyclers Exposition (PRE) was
held concurrently with HAZMACON '93 and contributed 2,000 persons to the total registration.
PRE was created as a technical conference and product exhibition to promote knowledge and
understanding of recycling of solid wastes and to help local governments reduce the solid waste
stream in conformance to AB 939. To reduce the costs of PRE and to afford potential attendees
greater opportunity to participate, PRE will be held as part of HAZMACON in 1994 and beyond.
CivNet Conference(2) - To enhance implementation of Bay Area public agencies getting onto the
information superhighway, this conference on civic networking will provide a forum for
information exchange among policymakers, professionals and the public. (See also
Intergovernment Computer Network above.)
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9ther Conferences (2) _ ABAG offers a broad range of planning and support services for
workshops, seminars and conferences. These services include complete "turn key"
implementation from initial design and pre-planning to program registration, delivery, folluw-uP,
and past-conference evaluation. ABAG has produced conferences, worksbops and training
programs for as many as 10,000 people and as few as 25.
Technical Assistanc~D)- Drawing on capabilities developed in ABAG's planning programs,
technical assistance is made available to local and state governments and the private sector in
accord with ABAG's policies on cost reimbursement. Services include: data development and
analysis; assistance in developing plans and plan elements; conducting special studies and .
demonstrations, and preparing reports.
Data CenterD) _ In this continuing program, Data Center staff undertake small area studies under
contract and provide Census and other data and analytic services on a cost reimbursement basis.
With the results of the 1990 Census, AB AG staff is dispensing information widely to its member
agencies in a timely fashion.
PublicationsDlMucb of the agency's work is available in reports, technical memoranda, and
books. A catalog is available describing ABAG's products and how to order them. ABAG's
reports are also available throughout the Bay Area in more than 20 cooperating depository
libraries.
Financial ServicesD) _ In FY 1983-84 ABAG initiated a cooperative credit pooling program for
member governments. The program enables local agencies to finance as a group public capital
improvements through taX-exempt certificates of participation. Through this program public
agencies are able to save by sharing costs associated with issuing the certificates. In 1987-88,
Financial Services were expanded 10 include a medium term capital financing program called
PEARL (pooled Exempt Adjustable Rate Leases), followed in 1992 by a similar program known
as ELVIS (Exempt Lease Variable Interest Securities). ABAG also has available a program
called pRIME (Pooled Rated Investments in Municipal Exempts) which offers long-term
financing. In 1993 ABAG launched SABR (special Assessment Bond Round-up) which allows
pooled financing of Special Assessment and Mello-Roos Bond issues.
ABAG is also assisting with the financing needs uf non-prufit agencies serving our communities.
ABAG formed and is serving as administrator of the ABAG Finance Authority for Nonproftt
Corporations which acts as issuer on behalf of nonprofit agencies.
Other financing options will continue to be added 10 serve the fmancing needs of local
governments. In addition to publicizing and expanding these services, ABAG is looking into
other ways to meet the financing needs of local government agencies.
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ABAG PLAN Corp.(2) - In 1986, the ABAG Pooled Liability Assurance Network (ABAG
PLAN Corporation) program was established. It has saved participants millions of dollars and
declared equity distributions to members every year since 1990. PLAN actively promotes
municipal risk management among participating jurisdictions and these loss control efforts
contributed to the return of tax dollars to these communities. The ABAG PLAN insures 29 Bay
Area cities.
This year ABAG PLAN members are scheduled to receive an equity distribution of $2.3 million
for holding down claims. ABAG PLAN has returned $9.6 million to its members in equity for
controlling losses. In the year to come, the PLAN Board of Directors will be developing a police
training program to reduce exposure for police liability. This year ABAG PLAN's assets will top
$25 million and maintain an actuarial confidence level of 90 percent. ABAG provides
professional claims adjusting and financial management for ABAG PLAN.
Workers Compensation Administration(2) - ABAG in 1987-88 began a program to provide
administration of agencies' workers compensation programs. It now includes 23 agencies.
Eighty percent of the professional staff are state-certified workers' compensation self-insurance
administrators.
Tobacco .Free Education Project(3) - ABAG provides training and technical assistance to
groups in the San Francisco and Monterey Bay Areas to develop skills in securing tobacco-free,
alcohol-free related funding for special events, particularly multicultural festivals. The project's
priority is to support those groups most heavily targeted by the tobacco industry--communities of
color, women and youth. We have reached over 200 groups and individuals interested in
alternative sponsorships through trainings and presentations which cover why tobacco and
alcohol industry sponsorship is a public health issue, as well as the how-to's of the sponsorship
seeking process. In January 1994, ABAG co-sponsored a conference about creating healthier
alternatives for sports event sponsorships and using sports to deliver a tobacco-free message.
The project is made possible by funds received from the Tobacco Tax Health Protection Act of
1988 -- Proposition 99.
INTERGOVERNMENTAL COORDINTION
AND AGENCY MANAGEMENT
Public Affairs(!) - ABAG recognizes the need to involve elected officials, citizens, technical
professionals, the private sector and special interest groups in the planning process, and to inform
these same groups of the services ABAG can provide. The Public Affairs staff conducts a
coordinated communications program which includes the: production and distribution of a
government directory, bibliographies, newsletters, rosters, infonnational brochures, fact sheets,
and slide-tape presentations; press conferences and liaison with the newsprint and electronic
media; maintenance of regional issues infonnation files and mailing lists; organization of
General Assemblies, public hearings, workshops, conferences, videos, and meetings of the
Executive Board and standing committees; liaison with member governments; production of
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educational programs in cooperation with community organizations, and other public agencies
and the media; responses to requests for information from the general public, educational
institutions, and other organizations and agencies. The staff is also responsible for the ABAG
Associates program, advertising and recruiting new private sector members and giving staff
support to the Corporate Advisory Committee.
Intere:overnmental Coordination(l) - Ensuring coordination with MTC, throughout the year as
well as in preparation of the Overall Work Program, continues as a major focus. This close
working reIationship is essential to avoid duplication of effort in the use of transportation funds.
It also helps ensure that ABAG's comprehensive planning program contributes substantially to
making regional transportation planning more cost-effective, efficient and responsive to the
needs of the region's commuters, industries and the transit dependent. Coordination with and
among local govern merits and regional agencies, the private sector and special interest groups
will continue, both directly and through support of ABAG's standing committees, joint policy
committees, task forces and advisory committees.
Le~islation(l) - ABAG's legislative program will focus this year on: bills that address economic
development and job creation. Members of the Legislation & Governmental Organization
Committee will work on restructuring government and suggest changes to the current
relationship between the State and local jurisdictions. In the second year of this legislative
session, ABAG will continue to promote the principles in the Regional Growth Management
Platform, adopted by the General Assembly in October 1992; support local governments' efforts
to reform the housing needs allocation process; and help streamline the CEQA process. ABAG
will continue to support strengthening local government fiscal capacity by developing and co-
sponsoring legislation to establish independent, stable revenue sources for local governments.
ABAG will also review and comment on other legislation affecting local governments and
regional planning in the Bay Area.
A2ency Mana~ement(l) - To make most efficient use of scarce resources in meeting needs of
member governments; the tasks include monitoring and coordinating of local services, special
projects, interagency relations, regional planning, training, legislation and public affairs -~
activities centralized in the office of the Executive Director. Agency management also oversees
annual budget preparation and General Assembly, Executive Board, Finance & Personnel,
Legislation & Governmental Organization and Administrative Committee support, and the
regional planning program.
(1) Priority programs for ABAG du~s and MTC comprehensive planning funds
(2) Programs expected to be primarily self-supporting
(3) Federally or State funded programs
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PROPOSED PLATFORM
00" RESTRUCTURING' GOVER~ENT',
Association of Bay Area Governments
--
March 17, 1994
ITEM 7
A lfo C? d-
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PROPOSED,PLATFORM ON l\ESTRVCTlJRlliG GOVERNMENr
Association of Bay Area Governments
GOVERNING PRINCIPLES
1. Any proposal to restructure government, by shifting responsibility for -any ,
program, service or activity from the state to cities and counties, must be
accompanied by revenue sources that can provide sufficient funding to cover
the." actual costs to local government and which 'are dedicated to that end.
Any calculation of costs must provide funding for programs with growing
populations which demand more services.
2. Cities and counties must not be subjected to any unfunded mandates or
cost shifts, nor should their local revenues be reduced.
3. Restructuring must emphasize a client-based approach to delivery of
quality services to the citizens of the state.
4. Restructuring must provide stronger incentives to control program costs,
by encouraging the redesigning of programs for greater efficiency and delivery
of service, and by allowing cities and counties to retain all savings resulting
from local innovation and success.
5. Restructuring must emphasize anministrative streamlining,
consolidation and cooperation.
6. ABAG, and other Councils of Governments (COGs) throughout
California, already set up as joint powers agencies, may be used by
their members to: .
o facilitate subregional and areawide cooperative agreements
o ensure the- voluntary nature of regional governance and protect home
rule.
7. Restructuring must eliminate unnecessary and burdensome state and
federal oversight.
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PROPOSED :PLATFORM ON RESTRUCTURING GOVERNMENT
Association of Bay Area Governments
8. Restructuring must first assign responsibility for programs on the
basis of which governmental unit can best provide the service, then allocate
sufficient funds to support those programs.
9. Restructuring must enhance local flexibility and decision-making
related to expenditures and program delivery.
FUNDING SHIFTS
10. Any amendments to the State Constitution must effectively prohibit the
state from shifting locally levied general and special tax revenues
either direcdy or indirecdy.
FUNDING SOURCES
11. Any amendments to the State Constitution must provide a
permanent formula for the allocation of revenue to local governments.
12. The State of California must aggressively pursue all revenues due to the
state, including but not limited to, corporate taxes from foreign companies
and federal reimbursements, such as: costs related illegal immigration, costs for
incarcerating federal prisoners, and costs incurred while a person's SS! status is
pending.
13. The State of California must aggressively pursue closing tax loopholes
other than those intended to encourage economic growth.
14. Budgetary needs to meet state responsibilities must be financed through
new state tax revenues, and not through local revenues.
is. When savings accrue at the state or federal level from arlmlnlstrative
streamlining, a majority of the savings should be transferred to local service
delivery units.
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PROPOSED PLATFORM ON RESTRUCTIJRING GOVERNMENT
Association of Bay Area Governments
16. Counties should be permitted to retain their locally collected fmes and .
forfeitures and civil court reporter filing fees,and the balance of state general
fund support should be allocated-as trial court block grants. -(The trial court
budgeting commission should be eliminated.)
FUNDING PRINCIPLES
17. Funds that are to be used by cities and counties to
deliver services at the community level should be decategorized.
18. The Constitution must provide a reliable source of funding for schools.
19. The 2/3 vote requirement should be eliminated for passage of the state
budget and state general obligation bonds, in favor of a lesser super majority
of 55% or 60%. .
20. The 2/3 vote requirement should be eliminated for passage of local taxes
and general obligation bonds, in favor of a lesser super majority of 55% or
60%.
21. Proposition 13 should be reconsidered.
22. The state should adopt a multi.year deficit reduction plan.
23. The state should examine alterrtative methods of calculating and
collecting state income tax, such as applying a set percentage to the federal
tax.
PROGRAM AND SYSTEM REFORMS
24. Maximum flexibility should be allowed for cities and counties to organize
themselves in order to best provide programs and deliver services according to
local needs.
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PROPOSED PLATFORM ON RESTRUCTURING GOVERNM;ENT
Association of Bay Area Governments
25. Any amendments to the State Constitution must re-establish the
historical home rule concept for cities and counties to block encroachment by
the state into municipal affairs.
26. The state should eliminate "maintenance of efforts" requirements.
27. Trial court coordination reforms which can provide cost-savings should be
encouraged, such as:
o electronic court reporting
o consolidation of local superior and municipal courts'
aclministrative offices and support functions.
o where appropriate, replacement of bailiff positions with "court
attendants. "
'" "direct calendaring" for felony cases, in which a home court handles
all charges for each defendant under a single charging document,
to prevent duplication and forum shopping.
28. Consolidation of fire services should be encouraged, either entirely in
voluntary regional units or according to specialized functions, such as
dispatch, fire prevention, hazardous materials response teams, and recruitment
and testing.
29. Consolidation of municipal services must be encouraged wherever
possible.
30. Time limits should be set on general assistance for able bodied employable
persons.
32. A single application form and uniform eligibility requirements should be
developed for all state health programs.
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PROPOSED PLATFORM ON RESTRUCnm.ING GO~ENT
Association of Bay Area Governments
33. The standards and reporting requirements for public health and
community protection activities handled by the following agencies should be
streamlined:Cal/EP A,- Health.. Services, Office" of Emergency Services
(hazardous materials), Department of Occupational Health and Safety,
Housing and Community Development.
34. State and local governments must work together on standardizing forms,
reducing paperwork and eliminating requirements for excessive
documentation.
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League of California Cities
Committee on
Local Government Reform
INTRODUCTION
It is no surprise that the difficult economic times in California have had a direct and
detrimental impact on governmental finance and services. The upcoming 1994 Legislative
Session marks the fourth consecutive year that the State Legislature and the Governor have
faced substantial state budget deficits. The same economic difficulties that plague the state
budget have also produced local budget deficits proportionately equivalent to those at the state
level.
Even prior to the economic downturn we are now experiencing, the fiscal integrity of the state
budget was undermined by a "structural" problem that saw expenditures in case load driven
programs greater than the projected revenue intake could support. This "preexisting condition,"
coupled with the severe economic recession, has not only produced huge budget deficits, but it
has prompted the elected leadership of California, both at the state and local levels, to make
serious inquiries into the governmental structure of this state and the public services delivered.
There are several "venues" in which the merits of state and local government restructuring are
being debated. The first, and to date perhaps the foremost effort was developed by the
Legislative Analyst's Office (IAO) in the report entitled, Making Government Make Sense.
That report begips with the premise that the state and local governmental structure in
California is "dysfunctional" and proceeds to recommend several very specific, and to some
extent monumental, changes in programs and revenue shifts between and among state and
local governments. The recommendations are intended to make the various levels of state and
local government more accountable and responsible for the programs and services delivered.
While there are many solid recommendations in the lAO report, several recommendations
have been met by objections from city government officials who argue that cities are more
functional than dysfunctional and are better prepared to meet the goals of accountability and
responsibility than other levels of government.
In addition to the work by the Legislative Analyst, the Assembly has appointed a Select
Committee on Restructuring Government, chaired by Assembly Member Valerie Brown, which
has held a series of hearings around the state seeking the advice of government officials,
academics, and private citizens about how best to deliver public services in California.
The Governor appointed his own advisory group called the Local Government Policy Council,
which appointed a technical advisory group called the Restructuring Advisory Panel (RAP) to
make recommendations on restructuring state and local government. A number of city officials
served on that panel.
Last, and certainly not least, the Legislature in 1993 passed, and the Governor signed,
legislation establishing a CalifonVa Constitutional Revision Commission. Many observers see
this commission as a key forum for addressing many of the dysfunctional provisions in
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California's Constitution which impede the efficient delivery of public services. The commission
is scheduled to issue its recommendations in mid-to-Iate 1995.
The problem of state and local government finance/restructuring requires both long-term and
short-term solutions. It is critical for any individual Of group examining the restructuring of
California state and local government to take a broader perspective than simply that of
parochial city, county, school or state government interests. There are many broader societal
and public policy questions than those dealt with in city halls across this state. On the other
hand, in the short-term, cities have first to survive to be involved in the larger, more long-term
public policy problems facing California.
Recognizing this short-term/long-term dilemma, the officers and board of directors of the
League appointed a League Committee on Local Government Reform to develop initial
recommendations for consideration in the League policy process. Those serving on the
Committee are many of the same city managers and finance directors who participated in the
Governor's RAP. This provided an opportunity to maintain a continuity of ideas and dialogue
on the restructuring issue.
The charge of the Committee on Local Government Reform is to provide technical advice to
the League of California Cities' staff and board of directors regarding:
1. Short-term budget recommendations for 1994-95 and, possibly, 1995-96, and
2. Longer term strategies and principles with regard to the structure and finance of local
government.
The report of the Committee on Local Government Reform will be reviewed by all policy
committees and Divisions of the League.
BACKGROUND - WHY RESTRUCTURING?
Everyone knows the old admonition, "If it ain't broke, don't fix it." Unfortunately, there is a
growing consensus that there is something fundamentally "broken" with the structure and
financing of California government today.
It is increasingly clear that "restructuring" is not simply the latest fad or buzz word to cross the
state. The problems we face with our changing economy and evolving society are truly
profound. It is highly unlikely that managing California cities over the next twenty years will
be anything like it has been over the last twenty years. We are beyond being able to "fine
tune" the system or "tinker" with the peripheral issues around the edges.
Moreover, this latest recession has laid bare some basic structural realities. This time we are
not going to be able to rely on California's traditional ability to "grow" its way out of these
social and economic problems. Tax users are growing faster than tax generators. The shift
away from aerospace and defense manufacturing is likely irreversible. Many cities are probably
already bankrupt and simply have not yet come to terms with it.
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There has been a constant devolution of private sector entities through mergers, takeovers,
shake-outs and failures. Governments, on the other hand, always manage to survive and
multiply. Our constituents seldom understand, rightfully so, how this Byzantine "system" of
government works. They resent the taxes they pay and refuse to pay more. And, they see
most of the indicators of what they consider to be a good quality of life continuing to decline.
Too many of our own politicians and journalists have carried "California bashing" to a high art
form. We do not intend any part of this report to be taken in that vein. California is still the
Golden State. We have natural, human, and economic resources beyond compare. We also
have problems, however significant, they are problems which can and must be solved.
PRINCIPLES UNDERLYING LONG TERM SOLUTIONS
The goal of the Committee on Local Government Reform is to have a "plan" on the issue of
restructuring which can be taken to whatever forum or venue is considering the issue--be that
the Constitutional Revision Commission, the Assembly Select Committee on Restructuring
Government, or whatever other forum.
As we set out to develop a plan, it seemed most reasonable that we should set forth some
underlying principles which will guide us in the creation of our plan and our evaluation of
other plans and proposals as they are brought forward.
This section of the report will attempt to set forth those principles developed by the committee
and to explain the thinking behind each.
1. Reduce the Amount of Government
There is too much government in California. We, in government, need to acknowledge
that fact and commit ourselves to be a part of its reduction.
California has almost 7,000 units of local government including cities, counties, special
districts, school districts, and a multiplicity of regulatory agencies, e.g., air quality
management districts, water quality control boards, integrated solid waste management
boards. These 7,000 units of local government raise approximately $70 billion arnmally.
Those very numbers are a large part of the reason people are resistent to any new taxes
and disillusioned by virtually all governmental operations. No one is apt to believe that
the current structure is the best way to organize the government of the state! It is,
therefore, understandable why any restructuring of local government and rethinking of
governmental finance are going to need to address the size before they can earn
credibility in the eyes of the people.
Any sincere effort on restructuring must commit to the goal of reducing the sheer amount
of government in California. In doing so, emphasis should be placed on favoring general
purpose government over single or special purpose agencies.
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2. Be Revenue Neutral
Given the Byzantine way taxes are collected and spent, it is impossible to honestly
determine whether or not there is enough money to meet the service needs of the state.
The opening premise must be that no new revenues be sought until, and unless, a clear
determination can be made that the current resources are being used in the best manner
feasible.
The $70 billion cited above includes all types of taxes, charges, assessments~ and enterprise
(e.g., water, sewer, transit fares) revenues. The officials in the bureaucracy can distinguish
between items that are clearly "taxes" as opposed to other sources of revenue. However,
the average taxpayer seldom makes a distinction. People are not apt to accept new or
higher taxes, as long as they are convinced that there is already enough revenue to go
around and that the government uses them poorly. In fact, California's overall tax burden
ranks about average among all states as a proportion of personal income.
Until the time that the case for increased revenues can be made, it is important, and
politically realistic, that any reform proposal be "revenue neutral." Certainly, changes to
the tax system can and should be made, but the cumulative tax burden on business and
individuals must not increase.
3. Provide Rational Realignment of Services
Any restructuring of state and local government should first assign the responsibility for
programs on the basis of who can best provide the service. The starting point for any such
study must b~ the services to be provided and not the boxes on an organizational chart.
The assignment of program responsibility should ensure that the assigned level of
government is accountable to the public for the performance of those activities. Services
should be provided by the level of government that can effectively and efficiently provide
those services, and is closest to the people receiving the services.
Assignment of program responsibilities should be accompanied by a modification of
current law to establish clear performance standards and the responsible level of
government should be given the power to achieve the performance standards by whatever
means it deems appropriate.
Without concurring with the specifics of the reorganization model put forward last year by
the Legislative Analyst's Office, the concept being proposed is clearly on target. A
fundamental reassessment of which level of government is best suited for providing which
specific services must be undertaken. Old paradigms must be set aside and a fresh look
should be taken at organization at the state, regional, and local level.
4. Establish Nexus Between Service Needs and Available Funding
Once services can be identified and realigned with the most appropriate provider, a
reallocation of funding must be made.
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The current separation between revenues and programs is leading to a breakdown of
government in California. Officials at all levels of government are less accountable for
their actions and can blame the problem on others' actions. Through the transfer of state
fiscal problems to local officials, the state has become less accountable for its actions.
This has led to decreased understanding by the taxpayer of what level of government is
responsible for which services and what the taxes they pay are funding.
It is critical that any proposal for restructuring government contain a nexus between
revenues and the services provided by each level and entity of government. Program
funding responsibility should be consolidated at the level of government that has program
control. A reduced reliance on shared revenues or overlapping sources of revenues would
decrease the conflict between levels of local government over annexations and
development. This would help to restore accountability and responsibility to government
and to make government understandable to the average citizen.
Combining the control of programs and revenues would have the added benefit of
diminishing unnecessary state oversight of local programs and thereby reducing the overall
cost of government.
5. Tie Revenue to the Economv Usin~ Broad-Based Taxes
Within the context of staying revenue neutral, it is necessary to look at our tax structure to
seek greater equity without increasing the net tax burden.
Our current tax system is outmoded; it is based on an industrial economy structured to fit
a manufacturing-based society. For example, the current sales tax laws date back to 1933
and rely on the taxing of retail sales of tangible goods. This sales tax base fit California
well until the mid-1970s when it became evident that California and the United States had
become an increasingly service-based economy. The nation's share of personal
consumption spent on services increased from 31 percent in 1950 to 51 percent in 19901
Conversely, the percentage of the Gross National Product spent on tangible goods
decreased from 57 percent in 1950 to 39 percent in 19901
Clearly one of the most obvious distortions, resulting from the current system of local
government finance, is the advent of "cash box zoning." With the continuing trend to take
property tax revenue from local government and replace it with sales tax receipts, the state
has created a system that rewards cities and counties when they attract high volume retail
businesses with minimum wage jobs, such as discount retailers and auto dealers. The
current tax system offers local government little incentive for attracting industries with
high paying jobs, because the property taxes paid by these industries may not offset the
demands for such services as police and fire protection.
There will always be concerns about the "fiscalization of land use," however, actions by
state and local agencies will never be without consideration of fiscal impacts. Perhaps, the
time has come to reconsider the revenue structure so that it rewards actions by local
agencies that encourage appropriate development.
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6. Insure that Any New Structure is Understandable
People will rarely accept that which they do not understand. The system of governmental
finance in California is clearly not understood by the people. Years of tinkering, without
ever undertaking a comprehensive overhaul even though the entire framework for local
government finance was drastically altered by Proposition 13, has left the state with an
illogical and antiquated tax system.
California has evolved into an increasingly complex overlay of governmental jurisdictions
and responsibilities. No reform of state and local government finance will succeed if it
cannot be done in such a way that people will feel they understand it, and that it is
designed for the broadest public good.
RECOMMENDATIONS
1. Maintain Current Funding Levels
Local governments must be assured that the state will not seek to balance the state budget
through further cuts to local governments. It must be recognized that the downturn in the
economy that has plagued state revenues is having the same impact on local revenues.
The state cannot continue to turn to local agencies to solve its own budget problems.
The League recommends that if additional budget problems arise in future fiscal years,
the state must deal with those shortfalls within its own budget. The state has made one~
time reductions to cities, counties, and special districts of nearly $1 billion, and permanent
reductions of over $4 billion since 1978. This does not take into account the hundreds of
millions of dollars of uncompensated program responsibilities shifted to counties.
It is untenable to continue reducing the "local" property tax share or to seize a local
revenue source as a means of balancing the state budget and justifying it by claiming the
state is recapturing the AB 8 bailvout which it can no longer afford. Local agencies
contend that the state has already taken all of the AB 8 bail-out and many more dollars.
It is time for both "sides" to stop playing this numbers game and finally draw a double line
in the ledger book to close that issue. There is no longer any rational or equitable reason
for any further revenue shifts, absent a comprehensive reformation of governmental
structure and finance.
2. Implement a MultivYear Deficit Reduction Plan
The state did not get into their current fiscal problem in a single year and it is unrealistic
to try to get out of this dilemma in just one or two years. It would be extremely difficult
for the state to immediately cure its past budget practices and adopt a truly balanced
annual budget. The state has actually ended the year in deficit for each of the last three
fiscal years. The state cannot afford another politically expedient, but fiscally unrealistic,
quick fix.
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The League recommends that the state consciously implement a multi-year budget
approach. In essence, the multi-year deficit reduction plan could be a reasonable method
of long-term financial planning and would "buy time" to make the more fundamental
reforms which need to be addressed.
3. Maximize Pursuit of Federal Funds
The League has had a long-standing policy of pursuing reimbursement for unfunded
federal mandates. As an extension of this policy, state and local governments should work
aggressively with California's Congressional delegation, the Clinton Administration, and
. key Congressional leaders to increase federal funding to California and other impacted
states for the costs related to federal immigration policies.
The League recommends that the state should also aggressively pursue maximum federal
revenue in all eligible areas where financing is currently being provided primarily from
state and local funds.
4. Reduce the Vote Requirement for General Obligation Bonds
The State Constitution requires that the issuance of general obligation bonds by local
governments be approved by a two-thirds, super-majority of the voters. General obligation
bonds are repaid over twenty to thirty years by pledging revenue from an increased
property tax rate. This two-thirds vote requirement allows a minority of voters to deny the
will of the majority.
The League recommends that the two-thirds vote requirement for general obligation
bonds be reduced to either a majority vote or no more than a sixty percent vote
requirement.
5. Enact Incentives to Downsize Government
California has almost 7,000 units of local government with approximately $70 billion in
revenue annually. These very numbers are a large part of the reason people are resistant
to any new taxes and disillusioned by virtually all government operations.
The mix of local agencies providing services varies greatly throughout the state. There is
no one right way to provide services. In order to more efficiently and effectively provide
services, the League recommends the enactment of incentives to downsize, merge, or
consolidate local agencies.
6. Allow Greater Flexibility Over Use of Local Revenues and Administration
Local governments, especially counties, are faced with requirements to provide specific
services with restricted revenues without the flexibility needed to integrate services and
revenues to improve outcome. Both the federal and state government have developed
new programs designed to solve specific aspects of health care, social service, or public
protection problems without regard to how the new programs would fit into existing local
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government organizational structures. Many related programs continue to exist side-by-
side, isolated from each other due to federal and/or state inflexibility. For example,
health care services include separate and distinct programs within the categories of public
health, indigent health, mental health, alcohol and drug, and environmental health
services. These health programs are funded by about fifty distinct revenue sources and,
for the most part, these revenues can only be expended for very specific services with little
or no incentive to integrate services to improve outcome for patients.
To achieve the goals of increased flexibility and consequently improved service, the
League makes the following recommendations:
a. The state should suspend or reduce requirements, such as maintenance of effort
provisions in state-sponsored/ county-administered programs, which are impediments
to funding services of highest priority to the citizens of the state. In addition,
counties should be given full authority to centralize/restructure the administration of
county governments with the goal better and more rational delivery of services.
b. Local elected officials should be allowed to shape, in the most reasonable manner,
public programs under their jurisdiction. City councils and boards of supervisors, that
control dependent special districts, should be authorized to shift property tax revenue
between entities under their own control in order to use funds for the highest priority
programs.
c. All statutory and regulatory barriers and impediments should be eliminated to
encourage and enable local agreements to consolidate or to operate cooperative
progra~s among cities, counties, school districts, and special districts. The League
shall pursue this issue by surveying cities to identify specific barriers and
impediments.
7. Implement a State Strategic Plan
The state has no coordinated plan for the future. Frequently the state's departments work
at cross purposes. The League recommends the adoption of a state strategic plan with
clearly articulated and internally consistent state goals and policies. This plan, developed
by the Governor, would be an outline of the principal goals, policies, and objectives of
statewide importance that would be addressed in the time frame of the plan and would
serve as the basis for resource allocation in the state budget.
8. Evaluate Program Effectiveness of Regulatory Agencies
Frequently the focus of regulatory agencies has been the rules and process with little
attention paid to achieving the goals that the agency was established to achieve. For
example, the Integrated Waste "Management Board should place more attention on
achieving the recycling goals under AB 939 than on prescribing the exact steps to be taken
by each local agency to be in compliance with AB 939. The League recommends that
state and local governments evaluate the efficiency and effectiveness of regulatory
agencies in light of legislative goals and purposes.
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9. Broaden the Tax Base
As the state's economic system continues to shift to a services and information based
economy, the taxing system must also shift if we are to effectively finance governmental
services. The goal of this change would not be to increase revenues, but to reflect the
economy of the 1990s. As an example, imposing a gross receipts tax on services or
widening the basis for taxing telecommunications would expand the tax base and potential
growth of California's tax system.
The League recommends serious examination of a broadened tax base which is "revenue
neutral." The transition to a new and broadened tax base would have to be phased in
carefully to ensure the viability of existing local agencies. Converting to a new tax base
that reflects today's economy would allow state and local governments to benefit from the
growth in the economy and better meet the needs of their constituents.
10. Reform Benefit Assessment Laws
Benefit assessments provide for a levy on properties in cases where a direct or special
benefit to the assessed property can be shown. Because the determination of assessments
are based on the degree of benefit received by each property, assessments are not
considered a tax.
Benefit assessment districts are one of the oldest and most widely used mechanisms to
fund public capital improvement projects and to provide for the ongoing maintenance of
such projects. In recent years, many local governments have initiated assessment districts
for services which may have been previously funded through the agency's general fund. In
addition, the' state has adopted legislation to expand the purposes for which benefit
assessment district financing may be applied. Benefit assessment districts can now be used
for a variety of services including fire suppression, graffiti abatement, and park
maintenance.
Both the business community and taxpayer groups have expressed concerns with the
increasing use of benefit assessment districts by local government. One belief is that such
assessments bypass many recent requirements for voter approval of mechanisms to raise
revenue for public services. In addition, the cumulative increase in the use of benefit
assessments, since the passage of Proposition 13, has been the subject of a commentary in
a newsletter of the California Taxpayers' Association. Another concern voiced by these
groups is that with the use of benefit assessments to fund more general purpose activities,
the ability to identify direct or special benefits for certain properties diminishes and such
funding mechanisms begin to reflect the characteristics of a tax.
The opportunity to create assessment districts allows legislative bodies and citizens to
determine an appropriate level of services and a direct means for funding such services.
Elected representatives should continue to have the discretion of initiating benefit
assessment districts by a vote of the legislative body provided that citizens are given an
opportunity to participate in this process through public hearings and a protest procedure.
This authority must be balanced by responding to the concerns expressed by business and
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taxpayer groups, or the ability of local agencies to fund much needed improvements
through benefit assessments will be lost.
It is recommended that the League aggressively participate in the task force already
underway to reform the use of benefit assessment districts in order to preserve this
funding mechanism and to ensure abuse of this financing technique is prevented.
11. Revise Reorganization Laws. Annexations/Incorporations/Spheres of Influence
Several of the major problems facing local government today can be traced to the
difficulties of reorganization. Due to fiscal stress, cities and counties argue about property
tax and sales tax sharing agreements, while frequently ignoring the long~term goals of
development within their communities. This can lead to a lack of a comprehensive
planned community and hop~scotching development. In order to solve these problems,
cities and counties need to stop working at cross purposes and begin building towards a
future that is better for the entire population.
The following recommendations are designed to achieve a better planned community,
consistent with the premise that cities should have control of land use within their spheres
of influence:
a. Remove impediments to annexations of pockets containing housing and/or
manufacturing. Local Agency Formation Commissions (LAFCOs) should not have
the power to disapprove annexations of territory surrounded by a city.
b. The current system for approving annexations allows counties to stop annexations if
the city is not willing to share with the county a satisfactory amount of sales or
property tax (as determined by the county). Growth is occurring within a city's
sphere of influence, but the city is unable to annex the territory. It is recommended
that a default provision designating the property tax and sales tax distribution be
adopted, if the city and county cannot agree.
c. Cities should have the authority to approve urban development within their spheres
of influence. The spheres of influence could then be strengthened by allowing cities
to assume planning and zoning responsibility within their spheres of influence. No
city should have a sphere of influence coterminous with the city boundaries, if there
is an unincorporated area abutting the city.
d. Urban development should occur within incorporated areas. Several counties have a
policy that the only approved development will be within incorporated areas. From
the perspective of land use, this policy is very sensible, and it would take a strong
commitment from both the county and the cities within the county to be adopted.
The Goverrunent Code provision allowing Santa Clara County cities to approve
annexations within their sphere of influence without LAFCO approval should be
expanded to include all cities where the county agrees to a municipal only
development policy and tax sharing formula.
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e. Require LAFCO to approve annexation applications within a city's sphere of
influence unless LAFCO can make specific findings to the contrary. This could be
expanded to require cities to annex any developed property within their sphere of
influence. Of necessity, this could be tied in with intermediate spheres of influence
outlining current infrastructure servicing areas and ultimate spheres of influence for
ultimate future growth.
12. Control Actions of Other Entities Through Local Planning
Current law allows local agencies to approve or disapprove development which is subject
to the general plan of another entity.
All actions of districts and limited purpose agencies must be compatible with the planning
and zoning, and building inspection requirements of the city or county that is the
responsible comprehensive land use planning agency.
13. Establish a Task Force on Local Permitting Authority
The conflicting permit requirements imposed by overlapping state, local, and regional
authorities provide too many roadblocks for development projects. The League
recommends that a task force be established to determine better alternatives to the
current permitting process.
14. Support California Environmental Quality Act (CEQA) Reform
Under existing law, CEQA is focused on project level decisions because funding is
applicant based. This project level analysis encourages NIMBY lawsuits and redundant
policy analysis. Recent amendments to CEQA (AB 1888 and SB 919) allow for
preparation of comprehensive environmental analysis of general plans but failed to
provide a funding mechanism for these master environmental impact reports (EIR).
The League recommends that cities and counties be allowed to utilize a Master
Environmental Impact Report for each new or updated general plan. If the Master EIR
analyzes buildout of a general plan, projects of any size which conform to the general plan
would not require further CEQA analysis. This would place the focus on the
environmental concerns of the city's or county's general plan and not on specific projects
which would eliminate the unfairness of project level challenges.
This Master EIR concept is, however, believed taTun afoul of the AB 1600 nexus
requirements. Therefore, the League recommends legislation amending the Government
Code to allow collection of fees on a jurisdiction-wide basis to pay for the Master EIR.
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15. Make Mandate Reimbursement Laws Meaningful
Article XIII B of the California Constitution requires the state to reimburse local agencies
when the state mandates a new program or higher level of service. Exceptions are
provided for mandates requested by a local agency, defining a new crime, and mandates
enacted prior to January 1, 1975. State laws over the years have also exempted
reimbursement when the mandated program can be supported by a fee or when there are
costs as well as savings in the bill. In recent years, the Legislature has added "poison pills"
to mandate legislation, which have provided that if the Commission on State Mandates or
the courts finds a reimbursable mandate in the act the legislation will become inoperative.
This has the effect of canceling out both the mandate and other local programs which the
local governments support.
The League recommends adhering to the provisions of Article XIII B of the Constitution
to make mandate relief a meaningful issue. The state must reimburse mandates without
passing the cost on to local entities by requiring them to increase fees. There needs to be
an end to the inclusion of "poison pills" in bills which effectively prohibit local agencies
from suing the state for proper reimbursement.
16. Improve Financial Reporting
Uniform financial reporting among local governments and the timely release of accurate
and reliable financial data from the State Controller's Office are essential if elected
officials at all levels of government are to make intelligent budget decisions.
Requiring the State Controller's Office to prepare its Annual Report of Financial
Transactions within six months of the financial reporting deadline will allow for state
budget decisions to be based on current and accurate information.
In order to facilitate the improvements to financial reporting, it is recommended that the
League work with the State Controller's Office to improve the report on city financial
transactions.
17. Adopt Telecommunications Task Force Principles
The development of advanced telecommunications technologies promises to stimulate
competition and economic development. The desire to create an open and competitive
market has sparked efforts at the federal and state level to remove regulatory "barriers" at
all levels of government, in order to streamline the development of advanced
telecommunications services. As the open market for telecommunications services
evolves, the regulatory powers cities enjoy will become increasingly vulnerable. Cities
must take steps to ensure that their role in protecting the interests of their communities is
not sacrificed in the interest of developing the information superhighway.
The League is currently developing the following principles that reflect the interests of
cities in the development of telecommunications policy:
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a. Cities must have certain regulatory powers over telecommunications service providers
in order to protect city infrastructure. ensure open access to telecommunications
services. protect the privacy of consumers of these services. and correct the market
inequities that will occur when the advanced telecommunications services market
becomes open and competitive.
b. Cities should receive compensation for use of the public right-of-way. from all users
of the public right-of-way. including telecommunications service providers. Cities
should also receive compensation for the short- and long-term negative impacts of
installing fiber-optic and other telecommunications wire in city streets and in the
public right-of-way. Securing these revenues will be especially important if municipal
franchises for cable service are eliminated due to a softening of the existing
regulatory and franchise powers.
c. Cities recognize that broadband capacity has considerable value, in that it can be
used both to support city operations and to streamline delivery of a variety of public
services. Cities should receive an appropriate allocation of all advanced
telecommunications resources, such as bandwidth on broadband networks. fiber-optic
wiring. and spectrum on the 800mhz radio frequency. that operate within their sphere
of influence.
18. Support State Audit
The League is reaffirming Annual Conference Resolution #37-1993. which recommended
that the State of California should implement a complete review and audit of all state
spending and budgetary procedures. The State Auditor. with proper funding should:
a. Challenge and question the basic assumptions underlying all state agencies and the
programs and services offered by the state to identify those that are vital to the best
interest of the people of the State of California and those that no longer meet that
goal.
b. Conduct a complete review of all state agencies and all programs, services. and
activities operated by those agencies.
c. Evaluate the efficiency with which state agencies operate under their jurisdictions and
fulfill the duties assigned to them by law.
d. Determine the methods to maximize the amount of federal funds received by the
state for its programs in order to better ensure that the people of California receive a
greater share of the taxes levied on them by the federal government.
e. Identify any state agency or any state program or service now offered by an agency
that can be eliminated or transferred to the private sector without injury to the public
good and/or well being.
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f. Make recommendations for the programs and the services the various state agencies
provide, as well as recommendations for the elimination of or reduction in funding to
various agencies, programs, or services based on the results of the performance audit
review.
g. Make recommendations to the State Legislature as to amendments to statutory and
constitutional provisions that will improve the efficiency of state government,
including, if appropriate, recommendations on the reorganization or consolidation of
state agencies. .. '
H: \LEG\lS\RESTRUcr.002
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