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HomeMy WebLinkAboutItem 5.2 League of CA Cities Dues Increase CITY OF DUBLIN I o AGENDA STATEMENT CITY COUNCIL MEETING DATE: January 27, 1986 SUBJECT League of California Cities proposed dues increase EXHIBITS ATTACHED Memorandum from League of California Cities dated December 18 , 1985 RECOMMENDATION Instruct the City' s representative to the East Bay Division of the League of California Cities to convey the City of Dublin' s position to that body. FINANCIAL STATEMENT: The City of Dublin' s annual dues would be increased from $1 ,859 to $1 ,971 . DESCRIPTION The City has received a communication from the League of California Cities indicating that the Board of Directors of the League is proposing a 6% dues increase. The League has requested that the City review the proposed increase and express the City' s position to our respective League Division which is the East Bay Division of the League of California Cities. ---------------------------------------------------------------------------- COPIES T0 : ITEM No. .2- . �® r d ®®:; League of California Cities ®®�- 1400 K STREET • SACRAMENTO,CA 95814 • (916)444-5790 - California Cities Work Together n• Sacramento, CA December 18, 1985 TO: Mayors, City Managers and City Clerks in Non-Manager Cities FROM: Pat Russell, Council President, Los Angeles and President, League of California Cities SUBJECT: League of California Cities' Financial Condition and Proposed Dues Increase The League of California Cities' Board of Directors by unanimous vote is proposing an increase in dues in the amount of six percent (6%) which represents a total net increase in revenues to the League in 1986 of approximately $77,861 or 3.2%. The action of the Board of Directors needs to be confirmed by the League's 13 regional divisions by February 14, 1986. The following memo provides a summary of the League's financial condition, its proposed dues schedule and the line item budget for calendar year 1986. You are urged to immediately review the enclosed materials and should you have questions regarding the proposed budget, you are encouraged to contact the Executive Director Don Benninghoven in the Sacramento office of the League or members of the Board of Directors and to express your feelings regarding the dues increase to your respective League division. Background: The League of California Cities is a voluntary association of cities. I am pleased to report that the League continues to have 100% membership and that in 1985 dues represented approximately 59% of the total revenue while 31% was from conferences and institutes, 5.5% from the Annual Exposition and 4.5% from investment income. In the past, it has been the policy of the League to have large periodic dues increases, usually 50% to offset inflation and costs of needed service programs. , Last year, when the membership agreed to a dues increase, it was the strong recommendation of city officials that the -League make every effort to avoid large periodic dues increases in the future. The 1983 amendment to the League Constitution and Bylaws addressed that concern by authorizing the Boards of Directors, by a two-third's vote, to increase dues up to 10% annually. The amendment went on to provide for ratification of any dues increase by the regional divisions within 60 calendar days from the date of submittal by the Board of Directors. Ratification by a majority of division representing a majority of cities is required. Regional divisions not responding within 60 calendar days shall be considered to have ratified the dues increase. Current Financial Condition: League dues increase approximately 1.6% per year while expenses are increasing on an average of 10% per year. Attached is the line item budget for the League of California Cities, including the 1985 proposed budget, estimated actual expenses for the calendar year and the proposed 1986 budget. At the end of 1985 the League's financial condition is good. Lower than expected expenses, along with greater attendance at League conferences and institutes, has permitted the League to re-establish its prudent reserve and at the same time continue to move forward with a sound service program and a strong legislative advocacy program while also implementing a major data processing/office automation effort that will permit the League to'enhance its legislative, membership and legal services to the membership. Proposal: The League Board of Directors, as authorized by the League's Constitution and Bylaws, is proposing a 6% dues increase, which will result in approximately $77,861 in new revenue for calendar year 1986. This dues increase represents a modest 3.2% increase in general purpose revenue for the League. While city general purpose revenues are estimated to increase approximately 7.1% in 1985-86 according to the State Department of Finance, the League is able to maintain its service program and build upon that very successful program with this dues increase. In 1986, the League of California Cities, in addition to carrying out the wide range of services undertaken last year, will add the following activities: -- Completion of implementation of the data processing/office automation system. The League has purchased a Hewlett-Packard 3000 with the appropriate software to greatly enhance our word processing capabilities, list management and publications management, legislative bill service and electronic mail, library management, seminar and conference management, research analysis and accounting. -- Public Information Activities for three June propositions which will greatly impact on local government: tort reform, reinstatement of general obligation bond financing, and guarantee of the motor vehicle in lieu fees. These issues are of vital concern to cities and a well organized public information program will be initiated beginning in January 1986 that will require additional staff support and resources. -- Study the feasibility of creating an excess liability insurance statewide fund. The League office in Washington, DC, has provided an important link to both activities of concern to California cities and our relationship with the National League of Cities. The Board of Directors is proposing to maintain our Washington office with a full time staff position. These activities, coupled with the on-going programs provided by the League, are contained within the proposed 1986 line item budget. - 2 - *ESTIMATED YEAR END **PROPOSED 1986 BUDGET LEAGUE OF CALIFORNIA CITIES Line Item Budget STATEMENT OF REVENUE & EXPENDITURES 1935 1986 REVENUE 1985 Budqet REVENUE * REVENUE ** $1,319,341. ;:1,346,103. $1,423,904. Cunt. & Inst. Regis. 635,625. 720,750. 759,950. Interest 130,000. 120,000. 115,000. Annual Conf. Exhibits 94,500. 110,583. 132,000. Misc. & Cont. -0- -0- -0- Approp. Prior Year 261,664. -0- _0- TOTAL REVENUES $2,441,130. $2,297,436. $2,430,914. 1985 1986 EXPENDITURES 1985 Budqet Expenditures* Expenditures ** Personnel $ 995,314. $ 950,000. $1,065,078. Retire/Group Ins. 246,870. 230,945. 258,900. Soc. Security 63,000. 67,000. 68,500. Retirement 104,860. 94,295. 114,000. Hospital 62,060. 54,500. 59,500. Disability 4,200. 3,400. 3,950. Dental 12,750. 11,750. 12.950. Unemployment -0- -0- -0- Travel & Expense 88,500. 95,000. 100,000. Rent 19,700. 17,050. 20,000. Los Angeles 13,200. 15,590. Washington 6,500. 4,410. Postage 52,800. 47,800. 54,900. Mailing Service 2,000. 1,500. -0- 'I'elephone 54,000. 47,500. 54,000. Office Supplie-s & Exp. 53,050. 49,000. 53,900. Equip. Maint. Agreement 24,550. 23,700. 41,600. Board Meeting Exp. 60,325. 40,250. 50,000. Dues & Memberships 61,030. 58.000. 67,630. A. NLC 49,140, 49,140. B. Other 11,890. 18,490. 'faxes & Insurance 21,900. 21,900. 29,000. Annual Conf. & Inst. 249,430. 300,000. 332,500. Legislative Advocacy 20,000. 15,000. 20,000. Library 11,500. 11,500. 12,700. Special Services 46,500. 34,037. 45,500. A. Reg. Divisions 3,000. 1,500. 4,000. B. Research & Infor. 3,000. -0- 4,000. C. Committee Exp. 28,000. 23,000. 25,000. D. Other Services 12,500. 9,537. 12,500. Special Projects 75,000. 41,556. 50,500. A. Staff Devel. 20,000. 14,000. 20,000. B. Interns/Consul. 35,000. 5,000. 18,000. C. Salary Survey 5,000. 5,000: 6,000. D. Range Riders 5,000. 5,000. 6,500. E. Data Automation 10,000. 10,056. -0- Annual Conf. Exhibits 55,000. 64,784. 72,250. Miscellaneous & Cont. 67,861. 7,700. 54,456. Captial Improvements 235,800. 223,360. 48,000. A. Autos 21.,000. 21,000. 21,000. B. Other 214,800. 202,360. 27,000. TOTAL EXPENDI^.'URL•'S $2,441,130. $2,290,638. $2,430,914. LEAnuE OF CALIFORNIA CITIES REVENUE eXhihit5 . 1981-1986 exhibits interest interest exhibits in eres from reserves exhibits from reserves exhibits exhibits interest training training interest interest training training, training training dues dues dues dues dues dues 1981 1982 1983 1984 1985 1986 81 ,570,370 $1,596,718 $1 ,791 ,539 $2,060,428 $2,297,436 $2 ,409,747 $ 2,50C,000 2,400,000 �ssmas� 2,300,000 • 2,200,000 • • • O 2,100,000 • 4 • 2,000,000 O• O. 1,900,000 A• A 1,800,000 A® O 1,700,000 ®O ie 1 ,600,000 A 1 ,500,000 a®�®ASd�ao ®e 1 ,400,000 1,300,000 1 ,200,000 i 1,100,000 1 ,000,000 900,000 1981 1982 1983 1984 1985 1986 TOTAL REVENUE: DUES: EXPENSES: LEAGUE OF CALIFORNIA CITIES -- SUMMARY OF DUES, REVENUE AND EXPENDITURES LEAGUE OF CALIFORNIA CITIES r By Laws adopted October 1983 by the Annual Conference general assembly two-thirds (2/3) vote requires. ARTICLE IX - DUES Section 1. Dues The annual Dues for Member Cities, and the annual service charge for registered cities of the League on and after January 1, 1985 shall be as follows: 1985 Proposed 1986 For cities having a population of: 1 - 500 . . . . . . . . . . . . . . .$ 22 $ 23 501 - 600 . . . . . . . . . . . . . . . 56 69 601 - 700 . . . . . . . . . . . . . . . 111 118 701 - 800 . . . . . . . . . . . . . . . 123 130 801 - 900 . . . . . . . . . . . . . . . 145 154 901 - 11000 . . . . . . . . . . . . . . 178 189 11001 - 1,250 . . . . . . . . . . . . . . . 279 296 1,251 - 1,500 . . . . . . . . . . . . . . . 346 367 1,501 - 11750 . . . . . . . . . . . . . . . 412 437 1,751 - 2j000 . . . . . . . . . . . . . . . 490 519 2,001 - 2,250 . . . . . . . . . . . . . . . 524 555 2,251 - 2,500 . . . . . . . . . . . . . . . 579 614 2,501 - 2,750 . . . . . . . . . . . . . . . 613 650 2,751 - 3,000 . . . . . . . . . . . . . . . 668 708 3,001 - 4,000 . . . . . . . . . . . . . . . 746 791 4,001 - 5,000 . . . . . . . . . . . . . . 890 943 5,001 - 7,500 . . . . . . . . . . . . . . . 1,158 1,227 7,501 - 10,000 . . . . . . . . . . . . . . . 1,336 1,416 10,001 - 15,000 . . . . . . . . . . . . . . . 1,614 1,711 15,001 - 20,000 . . . . . . . . . . . . . . . 1,859 1,971 20,001 - 25,000 . . . . . . . . . . . . . . . 2,327 2,467 25,001 - 30,000 . . . . . . . . . . . . . . . 2,794 2,962 30,001 - 40,000 . . . . . . . . . . . . . . . 3,440 3,636 40,001 - 50,000 . . . . . . . . . . . . . . . 4,185 4,436 50,001 - 60,000 . . . . . . . . . . . . . . . 4,820 5,109 60,001 - 70,000 . . . . . . . . . . . . . . . 51298 298 5,616 70,001 - 80,000 . . . . . . . . . . . . . . . 5,565 5,899 80,001 - 901000 . . . . . . . . . . . . . . . 5,933 6,289 90,001 - 100,000 . . . . . . . . . . . . . . . 6,500 6,890 100,001 - 125;000 . . . . . . . . . . . . . . . 7,413 7,858 125,001 - 150,000 . . . . . . . . . . . . . . . 8,159 8,648 150,001 - 200,000 . . . . . . . . . . . . . . . 91272 9,828 200,001 - 500,000 . . . . . . . . . . . . . . . 465* 493* over 500,000 . . . . . . . . . . . . . . . 430* 456* *per each 10,000 population In no event shall the annual dues or service charge for any city exceed a total amount of $50,000. No city's dues shall increase more than $5,000 per year. For the purpose of this section, the population of each city shall be the population determined by the State Controller in making the most recent allocation to cities pursuant to the Vehicle License Fee Law. Section 2 . Increase in Dues . . As may be warranted the Board of Directors by a two-thirds ' (2/3) vote may increase the dues schedule after notice and justification to the cities , as provided in Section 1 up to ten percent (10%) annually. Section 3 . Ratification by Regional Divisions . Any dues increase passed by the Board of Directors as provided for in Section 2 above shall be submitted to the regional divisions for ratification. Ratification by a majority of the regional divisions representing a majority of the member cities constitutes approval of the dues increase . Regional divisions must respond to the submittal of the dues increase within 60 calendar days from the date of submittal by the Board of Directors . Regional divisions not responding within 60 calendar days shall be considered as having ratified the dues increase .