HomeMy WebLinkAbout8.4 League of Calif Cities Proposed Fees i
CITY OF DUBLIN qo�o
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: February 23, 1987
SUBJECT League of California Cities proposed dues increase .
EXHIBITS ATTACHED Memorandum from League of California Cities dated
January 12 , 1987 .
RECOMMENDATION q� 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 ' s 1986 dues were $1971 . The League is
proposing an increase of 6 % in annual membership dues . Not considering the
City ' s population growth during the last year , this would have meant a total
annual dues for 1987 of $2 , 089 . However , it is anticipated that the City ' s
population will exceed 20 , 000 and therefore , the 1987 League dues will
increase to $2 , 615 .
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 . League of California Cities has requested
that the City review the proposed increase and express the City ' s position
to the East Bay Division of the League of California Cities .
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COPIES TO:
ITEM NO. . �
League of California Cities F= ��
m m S 1400 K STREET • SACRAMENTO,CA 95814 • (916)444-5790
California Cities
Work Together Sacramento, California
January 12, 1987
TO: Mayors, City Managers and City Clerks in Non-Manager Cities
FROM: Jane Baker, Deputy Mayor, San Mateo 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 a 6% increase in dues which would increase revenues to the League in
1987 by approximately $87,600 or 3.3%.
Some examples: The proposal would mean a $1 increase for cities of 1-500
people, an increase of $307 for cities of 50,001 to 60,000 people, and an
increase of $590 for cities of 150,001 to 500,000 people.
The action of the Board of Directors needs to be confirmed by the League's 13
regional divisions by March 13, 1987. Ratification by a majority of division
representing a majority of cities is required. As specified by the League's
by-laws, regional divisions not responding within 60 calendar days shall be
considered to have ratified the dues increase.
The following memo provides a summary of the League's financial condition, its
proposed dues schedule and the line item budget for calendar year 1987.
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. 1986 dues represented approximately 55% of the total
revenue while 34% was from conferences and institutes, 5.5% from the Annual
Exposition and 5.5% 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. In 1983 when the membership agreed to a major 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. The amendment also specified the above noted procedure
for ratification.
Current Financial Condition: As cities gradually move into higher population
categories, League revenues from dues typically increase by approximately 2%
per year. At the same time League expenses to cover increased costs and an
expanding service program are increasing on an average of nearly 10% per year.
Attached is the line item budget for the League of California Cities,
including the 1986 proposed budget, estimated actual expenses for the calendar
year and the proposed 1987 budget.
At the end of 1986 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. During the past two years the League
also has been 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 $87,600 -in new revenue for calendar year 1987. This dues
increase represents a modest 3.3% increase in general purpose revenue for the
League. While total city revenues are increasing at an average rate of over
12% per year according to the latest figures available from the State
Controller, the League will continue to maintain its service program and build
upon that very successful program with this small dues increase.
Action Requested: You are urged to immediately review the enclosed materials.
Should you have questions regarding the proposed budget; you are encouraged to
contact members of the Board of Directors or Executive Director Don
Benninghoven in the Sacramento office of the League. You also are encouraged
to express your feelings regarding the dues increase to your respective League
division.
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LEAGUE OF CALIFORNIA CITIES
STATEMENT OF REVENUE & EXPENDITURES
Estimated Proposed
REVENUE 1986 Budget Year End 1987 Budget
Dues $ 1,423,964. 1,460,000. $1,580,489.
Conf. & Inst. Regis. 731,950. 900,500. 932,650.
Tnterest 115,000 145,000. . 130,000.
Annual Conf. Exhibits 132,000. 143,600. 170,000.
Misc. & Cont. -0- -0- -0-
Approp. Prior Year -0- -0- -0-
TOTAL REVENUES $ 2,402,914. 2,649,100. $2,813,139.
EXPENDITURES
Personnel $1,065,078. 1,062,000. $1,198,95n.
Sacramento
Lafayette
Los Angeles
Retire/Group Ins. 258,900. 252,000. 273,350. '
Soc. Security 68,500. 68,250. 74,100.
Retirement 114,000. 114,000. 120,000.
Hospital 59,500. . 53,500. 59,600.
Disability 3,950. 3,400. 3,100.
Dental 12,950. 12,850. 15,950.
Travel & Expense 100,000. 100,000. 110,000.
Sacramento 87,750.
Los Angeles 12,250.
Rent 20,000. 14,875. 16,150
Los Angeles 15,590. 11,275.
Washington 4,410. 3,600.
Postage 54,900. 50,000. 53,000.
Sacramento
Los Angeles
Telephone Exp. 54,000. 48,000. 56,000.
Sacramento
Los Angeles
Office Supplies & Exp. 53,900. 53,500. 58,500.
Sacramento 51,750.
Los Angeles 1,750.
Equip. Maint. Agreement 41,600 35,000. 35,000.
Board Meeting Exp. 500000. 48,000. 50,000.
Dues & Memberships 67,630. 56,000. 60,000.
A. NLC 49,140. 46,800. 46,800.
B. Other . 18,490. 9,200. 13,200.
Taxes & Insurance 29,000. 24,500. 25,100.
Annual Conf. & Inst. 332,500. 420,000. 466,600.
Legislative Advocacy 20,000. 11,300. 28,600.
Library 12,700. 12,700- . 14,000.
Special Services 45,500. 41,200. 82,000.
A. Reg. Divisions 4,000. 3,800. 7,000.
B. Research & Infor4,000. 2,500. 5,000.
C. Comm. Expense 25,000. 23,000. 50,000.
D. Other Services 12,500. 11,900. 20,000.
Special Projects 50,500. 35,370. 52,000.
A. Staff Devel. 20;000. 4,000. 20,000.
B. ' Interns/Consul.18,000. .22,620. 20,000.
C. Salary Survey 6,000. 4,250. 6,000.
D. Range Riders 6,500. 4,500. , 6,000
Annual Conf. Exhibits 72,250. 92,200. 85,000.
Miscellaneous & Cont. 26,456. 8,750. 10,000
Capital Improvements 48,000. 34,500. 71,403.
A. Autos 21,000. 21,000. 21,000.
B. Other 27,000. 13,500. 50,403
TOTAL EXPENDITURES $ 2,402,914. $ 2,399,835. $2,745,653.
_1_
LEAGUE OF CALIFORNIA CITIES
REVENUE Fxhi�i}s
1981-1986 exhibits Interest
'interest
exhibits '
interest
from
reserves
from
exhibits
reserves exhibits Training
exhibits • training
interest training
interest interest
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' training
training training
dues dues dues dues dues dues
1981 1982 1983 1984 1985 1986
S1 , 570, 370 $1 ,596, 718 $1 ,791 ,539 52,060,428 $2,297,436 * $2 , 650 , 000 .
*Estimated
LEAGUE OF CALIFORNIA CITIES
Bylaws amendment adopted October 1983 by the Annual Conference General Assembly.
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, 1986, shall be as
follows:.
1986 Increase Proposed 1987
For cities having a population of:
1 to 500 . . . . . . . . . $ 23 $ 1 $ 24
501 to 600 . . . . . . . .. 59 4 63
601 to 700 . . . . . . . 118 7 125
701 . to 800 130 8 138
801 to 900 . . . . . . . . 154 9 163
901 -to 1,000 . . . . . . . . 189 11 200
1,001 to . 1,250 . . . . . . . . 296 18 314
1,251 to 1,500 . . . . . . . 367 22 389
1,501 . to 1,750 . . . . . . 437 26 463
1,751 to 2,000 . . . . . . . . 519 31 550
2,061 to 2,2.50 . . . . . . . 555 33 588
2,251` to 21500 . . . . . . . . 614 37 651
2,501 to 2,750 . . . . . . . . 650 39 689
2,751 to 3,000 . . . . . . . . 708 42 750
3,001 to 4,000 . . . . . . . . 791 47 838
4,001 to 5,000 . . . . . . . . 943 57 1,000
5,001 to 7,500 . . . . . . . . 1,227 74 1,301
7,501 to 10,000 . . . . . . . . . 1,416 85 1,501
10,001 to 15,000 . . . . . . . . 1,711 103 1,814
15,001 to 20,000 . . . . . . . . 1,971 118 2,089
20,001 to 25,000 2,467 148 2,615
25,001 to 30;000 . . . . . 2,962 178 3,140
30,001 to 40,000. . .. . . . . . . . 3,646 219 3,865
40,001 to 50,000 . . . . . . . . 4,436 266 4,702
50,001 'to 60,000 . . . . . . . 5,109 307 5,416
60,001 to. 70,000 . . . . . . . 5,616 337 5,953
70,001 to 80,000 . . . . . . . . 5,899 354 6;253
80,001 to 90,000 . . . . . . . . 6,289 377 6,666
90,001 to 100,000 . . . . . . . . 6,890 413 7,303
100,001 to 125,000 . . . . . . . . 7,858 471 8,329
125,001 to 150,000 . . . . . . . . 8,648 519 9,167
150;001 to 200,000 . . . . . . . . 9,828 590 10,418
200,001 to 500,000 . . . . . . . . 493* 30* 523*
over 500,000 . . . . . . . . 456* 27* 483*
*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
c. increase the dues schedule after notice and justification Jo 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.
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