HomeMy WebLinkAboutItem 4.02 1996-97LeagueCaCitiesBudget (2)4
CITY CLERK
File #D7190-1491K
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: JANUARY 9, 1996
SUBJECT: 1996 -97 League of California Cities Budget/Proposed Dues Increase
(Prepared by Lou Ann Riera- Texeira, Assistant to the City Manager)
EXHIBITS ATTACHED: Memorandum from the League dated December 4, 1995
RECOMMENDATION: Approve the proposed 2% increase for 1996 and 1997 and instruct
the City Council representative to the East Bay Division to
communicate the Council's decision.
FINANCIAL STATEMENT: The League of California Cities recently adopted a two year budget
for 1996 and 1997. As part of the League's balanced budget, a dues
increase of two percent for each of the two years is recommended.
This would increase the City of Dublin's annual dues from the
current $4,174 to $4,257 in 1996 and $4,343 in 1997.
The City's FY 1995 -96 budget includes an estimated 5% increase in
League dues for 1996. Thus, sufficient funds are included in the
budget to cover the proposed dues increase for 1996. If approved by
Council, staff will budget sufficient funds to cover the 1997 dues
increase.
DESCRIPTION: The City received correspondence from the League of California Cities
regarding adoption of the League's two year budget for 1996 and 1997. Included as part of the balanced
budget is a proposed increase in member dues. The League Board of Directors is recommending a dues
increase of two percent for each of the two years. This amount is lower than the increase in the consumer
price index.
The League Board has developed an ambitious work program for the upcoming two year period. In addition
to the continued focus on changes in government structure and intergovernmental relationships, the League
will also address the following priorities:
o Proposition 62
o New Federalism
o Urban Development Authority
o Grassroots/Leadership Development
The League requests that cities support the proposed increase in dues. The League's by -laws require that any
dues increase be ratified by the League's sixteen regional divisions by February 5, 1996. If a Division fails
to respond, it will be counted as a vote to ratify the dues increase as provided in the by -laws.
Staff recommends that the City Council approved the proposed increase in dues and instruct the City Council
0 representative to the East Bay Division to communicate the Council's decision.
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COPIES TO:
H/cc- mtg/leagdues.doc
ITEM NO.
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Califomia Cities
Work Together
League of California Cities
1400 K STREET • SACRAMENTO, CA 95814 • (916) 658 -8200
December 4, 1995
TO: Mayors and City Managers
FROM: Sedalia Sanders, Mayor, El Centro
President, League of California Cities
SUBJECT: 1996.97 League Budget/Proposed Dues Increase
W
RECEIVE[?
DEC 1 11995
CITY Ur L)USLIN
Board Adopts League's First Two -Year Budget
At its November 17 -18 meeting, the League board of directors adopted a League budget
for 1996 and 1997. This is the League's first two -year budget. This new process allows
the board to set League -wide priorities, goals and objectives within a realistic timeframe
for program development and implementation.
The board spent a great deal of time in October and November board meetings discussing
the services and programs the League will provide during the next two years and we are
very proud of the work program and spending plan we have outlined.
As part of the balanced budget, a_dues increase of two percent for each of t taco y-cars is
recommended. This is lower than the increase in the consumer price index. The
ratification process for a dues increase calls for confirmation by the League's sixteen
regional divisions by February 5, 1996. If a division does not respond, it will be counted
as a vote to ratify the dues increase as provided in the League's bylaws.
A Time of Challenge; A Time of Opportunity
For the past several years, pressure has been building for changes in government structure
and intergovernmental relationships. The Supreme Court's recent decision in the Santa
Clara County case has catapulted to the forefront of the League's concern the city
council's authority to establish local service levels and funding sources. Addressing
Proposition 62 issues has become the League's number one legal and legislative priority.
Already we have filed a legal brief with the supreme court supporting the Santa Clara
County Transportation Authority's petition for rehearing. We have also had meetings
with the governor and legislative leaders to explore legislative remedies to the
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implications of the court's decision. We will continue to keep cities apprised of these
developments through bulletins, faxes and a new "In the Red" Alert geared specifically to
this critical issue.
Amidst these challenges, we are facing the best opportunity in decades to achieve
meaningful long -term reform of state and local government structure in California. The
League board is enthusiastic about the unique role cities can play in engaging the public
to become aware of our challenges and opportunities and in encouraging the public to
participate in seeking and implementing sound solutions. The League's policy,
articulated in "Making California's Governments Work," served as a focal point for
discussion by city officials, the California Constitution Revision Commission and other
organizations. Our current challenge is to heighten awareness of the issues and foster
debate that will result in solutions that are good for the cities and the people of California.
This is another high priority for League activity during 1996 and 97. Already the League
has produced a ten - minute video, "Revising the Future," to assist city officials in this
process. It was unveiled at the Annual Conference and copies are now available for
airing on cable channels and at council sessions and community meetings.
Other priorities addressed in the 1996 -97 work program and budget include:
• New Federalism. Congress is currently debating a new and a very different means to
deliver federal programs and services by providing massive block grants of federal
dollars to states and giving the states the flexibility to administer programs. The
proposals presently being debated could have tremendous impact on cities where
cities are direct recipients of federal program dollars. Indirect effects will come from
changes in health and welfare programs that affect the well -being of citizens in
California cities. This project represents one of the most important and massive
changes in intergovernmental relations in perhaps 30 years and could set the direction
for federal, state, and local governments for the next 30 years.
Urban Development Authority. One of the more volatile areas of city and county
relations is the approval and control of urban development on the fringe of city
boundaries. The League's goal is to strengthen city authority over urban development.
Cities are better suited from both a structural and accountability standpoint to make
urban development decisions.
Grassroots/Leadership Development. To achieve the League's strategic goals
requires an organization that is ready from an educational standpoint to perform the
tasks necessary to make these needed changes. This requires educational
opportunities, technological support and a strong communication effort. It also
involves the active participation of the board, division and department officers, policy
committee members, and other city officials. Components of this program will
include training for City Legislative Delegates in the legislative process, the politics
of the elections process, grassroots communication, etc. Efforts will also be taken to
strengthen the divisions and departments of the League and to enlist their
participation in achieving the major projects being undertaken to achieve strategic
goals. • .
Besides these important new projects on the League's agenda, we will continue to
provide ongoing vital services including educational opportunities, information services
and legislative representation. In fact, as city staffs are being cut and the courts and the
legislature continues to threaten the fiscal integrity of cities, more and more is being
asked of the League.
About the League Dues
League dues follow a sliding scale based upon city population. With the intent of being
as accurate and fair as possible, the League bylaws provide that, for membership dues
purposes, "the population of each city shall be the population determined by the State
Controller in making the most recent allocation of subventions to cities." (Article X,
Section 1) This has the advantage of linking dues directly to subvention revenues, one
measure of ability to pay.
The dues formula does not provide for natural growth that tracks the cost of living or
economic growth. For dues revenue to keep pace with inflation, the board must increase
dues. The proposed increase of two percent is the minimum required to fund the vital and
dynamic work program we will tackle during the next two years. In my city of El Centro,
population 38,541, the increase amounts to only $103. For a larger city of 100,000
population, the increase is $194.
Summary
As requested by our members in last year's customer survey, the board is looking ahead
and providing proactive leadership on the issues that are most critical and on which we
can have the most beneficial influence. Our organization is.strong. In addition to having
100 percent membership -- a remarkable achievement of which we are very proud -- we
are seeking the active and direct involvement of all cities.
The financial condition of the League is sound; current year operating costs are covered
by current year revenues. The two -year budget is essentially a break -even budget. The
estimates are tight, but it works. It will allow the League to move forward in a very
positive and effective way. If you desire additional information or a copy of the 1996 -97
work program and budget, please contact Dan Harrison in the League's Sacramento
office.
Thank you for your continuing support of the League.
a
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PROPOSED 1996 AND 1997 DUES SCHEDULES
(Represents a 2% increase each year)
200,001 to 500,000
Over 500,000
Per e
694 708 722
641 654 667
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.
g:\ mss \member\rid \budget \b96duesc.doc
For cities
1995 Due3
Proposed
Proposed
having a populatation
of:
Dues
1297 Dues
1
to
500
...
31
32
32
501
to
600
...
83
85
86
601
to
700
...
167
170
174
701
to
800
...
183
187
190
801
to
900
...
217
222
227
901
to
1,000
...
267
272
278
1,001
to
1,250
...
418
426
435
1,251
to
1,500
...
517
527
538
1,501
to
1,750
...
615
627
640
1,751
to
2,000
...
732
747
762
2,001
to
2,250
...
780
796
812
2,251
to
2,550
...
864
881
899
2,501
to
2,750
...
914
932
951
2,751
to
3,000
...
996
1,016
1,036
3,001
to
4,000
...
1,115
1,137
1,160
4,001
to
5,000
...
1,329
1,356
1,383
5,001
to
7,500
...
1,730
1,765
1,800
7,501
to
10,000
...
1,997
2,037
2,078
10,001
to
15,000
...
2,412
2,460
2,509
-15,001
to
20,000
...
2,777
2,833
2,889
20,001
to
25,000
...
3,477
2,527
2,577
25,001
to
30,000
...
4,174
4,257
4,343
30,001
to
40,000
...
5,138
5,241
5,346
40,001
to
50,000
...
6,251
6,376
6,504
50,001
to
60,000
...
7,201
7,345
7,492
60,001
to
70,000
...
7,914
8,072
8,234
70,001
to
80,000
...
8,313
8,479
8,649
80,001
to
90,000
8,862
9,039
9,220
90,001
to
100,000
...
9,709
9,903
10,101
100,001
to
125,000
...
11,073
11,294
11,520
125,001
to
150,000
...
12,187
12,431
12,679
150,001
to
200,000
...
13,851
14,128
14,411
200,001 to 500,000
Over 500,000
Per e
694 708 722
641 654 667
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.
g:\ mss \member\rid \budget \b96duesc.doc
$5,000,000
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
Conference:
30%
Education and
Conferences
35%
GENERAL FUND REVENUES
Interest/Other
4%
Contracts
5% Expo
6%
GENERAL FUND EXPENDITURES
Policy Development Board /Exec. Adm.
8% 12%
Dues
55%
Customer Services
21%
Communications
Legal Legislative 4%
3% 17%
GENERAL FUND REVENUES AND EXPENDITURES
1992 1993 1994 1995 1996 1997
(rev. (est.) (est.)
est.)
■ Revenues
❑Expenditures
40., 1
•I
0.-