HomeMy WebLinkAboutItem 8.2 LeagueCaCitiesDues (2)
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE:
January 13, 1992
SUBJECT:
League of California cities proposed 1992 Dues
(prepared by: Richard C. Ambrose, City Manager)
EXHIBITS ATTACHED:~emorandum from the League of California cities
- dated December 19, 1991
RECOMMENDATIONV: Instruct the city council's Representative to the
East Bay Division of League of California cities
as appropriate.
FINANCIAL STATEMENT:
The League of California cities is proposing
a 4% increase in its annual dues. This would
increase the city of Dublin'S dues from
$3,801 to 3,953 for Fiscal Year 1991-92.
Sufficient funds are available in the city
council's Budget to accommodate this dues
increase.
DESCRIPTION: The city has received a memorandum from the President
of the League of California cities indicating that the League's Board
of Directors adopted the Budget for 1991-92. The Board of Directors
is recommending a 4% increase in dues for 1991-92 to balance the
League's Budget.
The League's Bylaws require that any dues increase be ratified by the
League's Regional Divisions by February 17, 1992. If a Division does
not respond, it will be counted as a vote to ratify the dues increase
as indicated by the League's Bylaws.
It is recommended that the city Council review the proposed dues
increase and provide the city of Dublin's Representative to the East
Bay Division of the League of California Cities with the appropriate
direction.
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CITY CLERK
FILE ~
ITEM NO. -.S. 2,
COPIES TO:
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California Cities
Work Together
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League of California Cities
1400 K STREET . SACRAMENTO, CA 95814 . (916) 444-5790
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CORRECfED COPY: Proposed 1992 Dues Schedule Attached
December 19, 1991
To:
City Managers and City Clerks in Non-Manager Cities
From:
Hal Conklin, Council Member, Santa Barbara
President, League of California Cities
Subject:
1992 League Budget/Proposed Dues Increase
Board approves ti~ht bud~et for 1992.
The League's 1992 budget was adopted at the December 6 - 7 meeting of the Board of
Directors. The entire League leadership, including division and department presidents,
policy committee chairs and the Board of Directors, participated in a day-long leadership
orientation and budget review session on December 6. Most of the time was spent
discussing the services and programs offered by the League in its continuing effort to ensure
that the needs of cities are met. On the following day the Board discussed further the
specific budget proposals and adopted the 1992 budget.
As with most cities, the Board had a difficult time balancing a very tight 1992 budget. After
considerable debate, the Board agreed that next year's dues increase should be held as low
as possible. The Board's recommendation is to increase dues by 4%. This is the minimum
required to balance next year's budget. Registration fees for League conferences and
institutes will be increased by an amount equivalent to the consumer price index.
The League bylaws provide for ratification of any dues increase by the League's regional
divisions within 60 days. Ratification of a majority of the divisions representing a majority
of member cities constitutes approval of the dues increase. The bylaws further provide that
divisions not responding within 60 days (February 17, 1992) shall be considered as having
ratified the dues increase.
Objectives addressed by the 1992 budget.
The 1992 budget was prepared with three specific goals in mind:
. Maintain a broad and balanced service program for cities including a strong presence
in the Legislature.
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. Recognize the fiscal crisis confronting cities.
. Utilize "venture capital" to meet increased needs of cities.
Maintain service programs. The new League budget provides for an active program
of services that will make 1992 a productive year for cities and the League. Some
highlights of the work plan are:
. Continue systematic implementation of the League's strategic plan "Action for
the 90s" by the Board of Directors, policy committees and other functions
within the League.
. Develop a greater advocacy role with the Public Employees Retirement
System (PERS) through the newly organized PERS Coalition.
. Through the Committee on 21, explore how changing California demographics
will affect the League organization and operations during the coming decade.
. Produce and publish a variety of special reports and publications including A
Guide for Newly Incorporated Cities, A Directory of Dmg, Alcohol and Crime
Prevention Programs, A Guide for Assessing Effective Service Levels, Developing
Management Employees, and others.
. Continue an extensive array of educational and professional development
opportunities for cities including the 94th Annual Conference, set for Los
Angeles.
. Conduct a special project to educate voters about the impact of workers'
compensation on cities and businesses and the need for workers'
compensation reform.
. Produce and publish a "Municipal Law Handbook", a major reference
document for use by city attorneys and other city officials.
. Provide effective legislative representation. We expect 1992 will be an
extremely difficult year in the Legislature. It is almost certain that new taxes
will not be considered as part of a solution to the state budget deficit. This
means service cuts and revenue grabs will be the focus for debate and action.
Cities and the League will be required to present a strong defense to preserve
existing revenue sources and options. The League will work with city officials
to redefine the budget debate by clarifying the fiscal predicament of cities and
developing a strategic plan to establish mutually beneficial revenue sources
including an evaluation of existing and future city "services and savings."
Reco~nize fiscal crisis confrontin~ cities. In recognition of the difficulties cities are
having, the Board held the dues increase to only 4%. Various cutback measures
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were required to balance the budget, such as (a) eliminating one vacant staff
position, (b) retaining the current level of staff salary ranges with only merit increases
and no cost of living adjustment and (c) delaying virtually all capital replacement and
acquisition.
Utilize "venture capital" to meet increased needs of cities. In the past, a Publications
Revolving Fund has been a successful way to accumulate funds to cover the cost of
developing and distributing new League publications. Several new items will be
prepared in 1992 with the expectation that future sales will replenish the revolving
fund.
This approach will be copied with the organization of an "experimental unit" within
the Training Department utilizing outside assistance to design, develop and produce
prototype programs and services in new areas as needs arise. These new training
programs will be financed by a new Training Revolving Fund. The new programs
will return net registration proceeds to the revolving fund. If successful, the new
programs will become a regular part of the League's training program and budget.
In Summary.
The fiscal condition of the League continues to be sound with 100% city membership. As
with many cities, however, finances are very tight. The 1992 League budget is the tightest
in many years.
Nevertheless, the Board has adopted a balanced budget for 1992 that will enable the League
to provide leadership and long-range policy development, continue the variety of member
services and maintain an excellent staff. At the same time, the Board is very aware of the
budgeting constraints of the League's membership. The dues increase was held to 4%,
which represents a relatively small dollar increase for most cities. For example, a city with
a population of 20,000 will experience a $101 dues increase. Increases range from $27 for
a city of 2,000 to $505 for a city of 200,000. The actual increase per city is established by
the League bylaws and is based on a sliding scale in proportion to population.
Attached to this memo are several items that will help you better understand the 1992
League Budget including charts showing the budgeted revenues by source, expenses by
function, the history of actual revenues and expenses and the 1992 dues schedule. If you
desire additional information or a copy of the full program and line item budget, please
contact Dan Harrison, the League Finance Officer. The dues invoice will be mailed after
review of the proposed dues increase by League divisions.
If you have any questions about this information, please don't hesitate to contact the League
staff in Sacramento.
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I' "n
$5,000
$4,000
$3,000
$2,000
$1,000
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League of California Cities
General Operating Fund
Revenues v. Expenditures
Thousands
$0
1983 1984 1985 1986 1987 1988 1989 1990 1991. 1992
Est. Act. Budget
_ Total Revenues
~ Total Expenditures
Revenue History and Budget
Millions of Dollars
$5
$4
$3
$2
$1
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$0
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
Est. Act. Budget
- Dues ~ Training 0
UEinHi~i~J Reserves D Misc. .
_ Exhibits
Interest
Contract Services
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League of California Cities
1992 Operating Revenues by Source
Dues 51%
Miscellaneous 3%
Interest 4%
Contract Services 5%
Training & Exhibits 37%
1992 Budgeted Expenditures by Function
Training & Exhibits 32%
Admin. Services 17%
Legal Services 2%
Policy Development 7%
MemberShip Services 17%
Executive Admin. 12%
Legislative 13%
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PROPOSED 1992 DUES SCHEDULE
The following dues schedule incorporates a 4% increase over 1991 as recommended by the Board of
Directors. The cost of living index the Board used as a guideline for dues adjustments increased by
3.7% in 1991. This dues increase, if approved, will increase League revenue by an estimated $ 80,000,
approximately 2% of the General Fund.
For cities having a population of:
Proposed
1m. 1992 Increase
1 to 500 $ 28.00 $ 29.00 $ 1.00
501 to 600 76.00 79.00 3.00
601 to 700 152.00 158.00 6.00
701 to 800 167.00 174.00 7.00
801 to 900 198.00 206.00 8.00
901 to 1,000 242.00 252.00 10.00
1,001 to 1,250 381.00 396.00 15.00
1,251 to 1,500 470.00 489.00 19.00
1,501 to 1,750 561.00 583.00 22.00
1,751 to 2,000 666.00 693.00 27.00
2,001 to 2,250 711.00 739.00 28.00
2,251 to 2,550 787.00 818.00 31.00
2,501 to 2,750 833.00 866.00 33.00
2,751 to 3,000 908.00 944.00 36.00
3,001 to 4,000 1,015.00 1,056.00 41.00
4,001 to 5,000 1,211.00 1,259.00 48.00
5,001 to 7,500 1,576.00 1,639.00 63.00
7,501 to 10,000 1,818.00 1,891.00 73.00
10,001 to 15,000 2,196.00 2,284.00 88.00
15,001 to 20,000 2,529.00 2,630.00 101.00
20,001 to 25,000 3,166.00 3,293.00 127.00
25,001 to 30,000 3,801.00 3,953.00 152.00
30,00 I to 40,000 4,680.00 4,867.00 187.00
40,001 to 50,000 5,693.00 5,921.00 228.00
50,001 to 60,000 6,558.00 6,820.00 262.00
60,001 to 70,000 7,208.00 7,496.00 288.00
70,00 I to 80,000 7,571.00 7,874.00 303.00
80,001 to 90,000 8,071.00 8,394.00 323.00
90,001 to 100,000 8,842.00 9,196.00 354.00
100,00 I to 125,000 10,085.00 10,488.00 403.00
125,001 to 150,000 11,100.00 11,544.00 444.00
150,001 to 200,000 12,614.00 13,119.00 505.00
1991 Pro Dosed 1992 Increase
200,001 to 500,000 $ 632.00 $ 657.00 per each 10,000 of population $25/10,000
Over 500,000 584.00 607.00 per each 10,000 of population $23/10,000
In no event shall the annual dues for any city exceed $50,000, and no city's dues shall increase more
than $5,000 per year.
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