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CITY-01' PAI .. O AL'!'O 12 Memora.ndum.
DATE: July 22, 199i
Members of the Council
SUBJECT: Agenda Item 112 --En40zsement of ABAG Documents
As a result of disC1.lssion of this item at the July 18 meeting of
the Santa Clara County Cities Association, it has been learned that
the League of California Cities has concerns about item 4 in the
Statement of Guiding principles for Reform document. The League
advises that it may not be in the best i:1terests of cities to
support the call for a Constitutional Revision Commission.
Therefore, staff has revised the reco,",unendation so that it no
longer recommends endorsement of both ABAG documents. Tbe letter
of transmittal to ABAG viII explain that the Council's endorsement
does not apply to the Statement of Guiding principles for Reform
document.
The revised staff reco~endation reads as follows:
Staff reccrm .. 1'!1.e.nds that the Counci 1 endorse the Declarat ion
of Fiscal Interdependency by the Cities~ Counties, and
School Districts of the Bay Area.
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June -Fleming
Assistant to the City Manager Assistant City Manager
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July 18, 19$11
~HE HONORABLE crT. COUNCIL
PALO ALTO, CALIFORNIA
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t.ncSor§uept of M"G Deelaration or liseal Interdependepcy a:p1S
.tat .. ent of Gu14!Pa Pripcipl •• tor liscal Retorw
Members of the Council:
Report in~
All local government agencies in the Bay Area are being asked to
endorse two dOCUMents ~hich address the fiscal interdependence of
local governments and the need for comprehensive fiscal reform~
Background
Two documents, 1) the statement of Guiding Principles for Reform at
the State and Local Level and 2) the Declaration of Fiscal
Interdependency by the cities l Counties and School Districts of the
Bay Area, are the products of the ·Unity for Fiscal Reform-project
organi~ed by the Association of Bay Area Governments (ABAG). The
goal of the Unity project was to develop consensus on acceptable
strategies for achieving fiscal stability at all levels of
government.
The Interagency Committee 'ifrolhich developed the tW'o documents has
secured the endorsement of AEAG's Executive Board and is nOIJ asking
individual cities, counties, and school districts in the Bay Area
to endorse the documents. Agencies are asked to take action prior
to August 1. The League of California cities, the county
Supervisors Association of California, and the California School
Boards Association have been asked for their endorsements on a
statewide basis.
City representatives attending the Santa Clara CQunty Cities
Association Board of Directors Meeting on July 18 will discuss the
document'S and report .. thett~er Counci 1 action has been taken.
Staff's review of the language of the two documents finds them to
be compatible with existing Council positions.
CMR:380:91
Page Two
ReCCMepdation
staff re-CODUUcnds that the Council endorse the Statement of Guiding
Principles for Reforst at the State and Local Level and the
Dec~aration of Fiscal Interdependence.
R&spec~fully submitte~,
fi*~~--Ass~tant to City Manager
I
&tm'E FLEKING /1 ~i$tant City Ma~
Att.achment
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ASSOCIATION OF BAY AREA GOVERNMENTS
l.I.iiing Add'rltss: _ P' 0. 80l 20S{). OtIIII~d, Col 94604-2050
June :4, 1991
TO: Presidents of. Boards of Supervisors,
Mayors and School Board Presidents
FR: Ma.<y Griffin, President, ABAG, Supervisor, San Mateo County
William Screk, Alameda County Superintende nt of Schools
Jim Nybakken, Immediate Past Presiden~
Alameda County Scbool Boards Association
President, Piedmont Urnlied School Distr'.ct Board
RE: Endorsement of Declaration of FtS<allnterdependency and Statement of
Guiding Principles
Several months ago ABAG caJled together representatives of cities. counties and scbooI
distri.....-ts in the Bay Area. as well as representatives of the County Supervisors Association
of California (CSAC), the California Scl!ooI Boards Association (CSBA) and League of
California Cities (LCC), to develop a ucified position on Ille fiseaI interdependence of local
. governments and seek avenues for reform of current revenue all thorities, structUres and
relationships between the State, cities. counties and scbool distrias.
Over the last two months, tlle In~rage"cy Fiscal Interdependence and Reform Committee
worked to develop the attached Declaration of Fiscal Interdependency By Cities, Counties
and Scl!ool Districts of Ille Bay Area and Ille Statement of G"idi~g Principles. The""
documents recognize the fis.cal and organizatioruJ. interrelationships of cltie£, counties and
school district', and se' forth broad principles and guidelines tiuougb which we can begin
to address restruct'lring and reform of fiseaI and organizational rela~onships between tlte
State and cities, counties and school districtS.
ABAG's Executive Board endorsed tlris Declaration on June 13. Participating school district
representatives have also endorsed the document. We are now asking individual cities,
counties and school distrkts in the Bay Area to endo~ the Dec!aratioD and Principies as
well Statewick, CSAC. CSBA and LCC have also been requested to endorse Illis unified
position and these dO<:UlIJents.
We will present the Declaration and Principles to Governor Wilson and the Bay Area
Legislative delegation a.< Bay Area local governments' • cities, counties and school districts .
unified position, and as the starting point for developing long-term strategies for
organizational, structural and legislative reform.
Representi!1g Cit,. and County Governments 01 !Me San Fra~c::isco Bay Area
JOseph F! Sort Me1roCenter • Eight!"J '" Oak Streets • Oa~'a'1d • {4:SI464·7~O • Fa;.:: (415) 464·7979
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1une 24, 1991
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The Committee will continue its work for the next few I:lontiIs to develop a Iong·tenn
ActioG Plan and we encourage all those interested 10 participate.
Please consider these documents at a Soard or Councl meeting. prior to August 1, and bave
all members of the Board or Council sign the attached signature pag.. Once you have taken
action please send a copy 01' the enclosed Endorsement Signature Page to Mary Vail at
ABAG', offices.
Thank you for your consideratioD of this request.. The representatives of dties, counties and
school districts involved in this project ate onmmitu:d to working together to achieve reform
thaI will be in the best interest of allloca1 governments· cities. counties and school districts
-and we welcome your support and participation.
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STATI:MEI'."r"OF GUIDING PRINCIPLES Fok REFORM
AT THE STA TI: AND LOCAL LEVEL
1. As cities. counties and schoo! districts, we dedicate ourselves to making tl1e mOSl efficient
use Dr the tax donars curremly Rvail,1blc. Thi!5 may suggest more sharing of sen.ices
between Jocal agencies and a more efficicm us.e of ::-esources.
2. Citi.es, counties and school distrkt!i reject the use of revenue syslems thaI are divisive, and
shift revenues from one jurisdiction to another.
3. State mandated programs must either be f-Jlly funded by the Legislature or made optional
at the local leveL
4. Cities, counties and school districts suppOrt the creation of a Constitutional Re .... ision
CommiuioOl to enable constitutional changes to restructure the State bUdget process and,
as a result, reduce restrictions on local government revenues and budgets.
S. The State s'flouId nol assume aU respon.slbility for increasir,g tax revenue. Local
governments -cities., counties and school di.rtric:S-need locally controlled sources or
revenue for 1Iihich locally elected officials can be responsible to their constiluents, If local
officials are unable or un'Nllling t'J increase these local sources of revenue. ~hen progra.rn.s
should be reduced to baJance local gov-emment bUdgets.
6. The Le.gislarure should take whate.ver step1i.. are nece~.sary, whether starutory or
Comtitln!oaal amendments,. to etirrtinate tlle n:qurrement of a 2/3 majoriry vOle to apprO'o'e
local ... and financing proposals.
1. The Sta~e budget should include a funded' Lncer.tr.·c progr.srn thai makes addiLiona! funds
available as me:eative allocations to reward or fund cooperative local government ~ties,
counties and school dislrict-efforts and fiSOlJ efficiencies.
8. Stare and local revenues should represent a comomation of sources and expansion oC tile
tax base 10 avoid reliance on any single revenue sour~ which would have an ad"'erse effect
on the State or local. economy.
9. To implemem the guideEne.s in the DedrJ"3tioo of Fiscal fnterdependency. cities. counties
and school districts pledge to:
Dev(:lop improved working relaliorl.'ihips among affected jurisdictions through
increased rommunication.
Demorutrate respect Cor caci:1 other publicly. and worle toward resolution rather than
resoning 10 litigation and pu bJi c criticism.
Devetop CaciHties,. services and programs in collabofalion.
Support and sponsor legislation that \IIl1! enable :lit afiected jurisdiclions to better
meet the needs of at! citizens. Oppo~ legislation that is detrimental 10 other
jurisdictions.
Expand our point-of-view 10 include tne larger community, beyond OUT individual
jurisdictions, a.nd be open to new methods of seivice delivel)'.
Develop alternatives for stable. adequate revenue sources to fund necessary and
desired services.
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DECLARA nON OF FISCAL Il';'TERDEPENDENCY
BY THE CmES. COUNTIES AND SCHOOL DISTRICTS
OF THE BAY AREA
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We recognize tbe rLScaJ interdependence or aU levels of govc:rnmcDt, federal state >!lid local. inch.uiing cilies., c.ouoriet and schoof
outtY..u.
We reeognize tb.a! tnterdepc:ndcncy at In~ toeaJ leveJ i.s fIW!ra!cd by !iscai policies i:llld problems as well as Coc:.s.tilutional and
Tcgislru:M obstacles ar the federal and n:lIe revel
We rccupize that the Stare and aU loc:.aJ go~rnmCnls·-cilje!, counties and school OlSlriru--<:Drllinue 10 cxpenenc::
financiaI difficclries mag:u.ricd by increasing Dcew and demands (or service and cI10rmolU dcmc-graphic cbacges..
growing
We, Ihererore., submit Ihat cities, countic.s and schoof aIJ!riC!5 ue ictcrdcpendcnc bl:C3ll.ie:
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·We fn::qucotiy se:vc the s.amc people, otTen at !be same lime;
-We share many of the. same rC~DUCj .sources such as property tax, sales raJ[ and' other SI:He CODtrolled rc:veIlUc~ V.flCD
0l1C ju.ris:dlClion gains, anotber tn::quenrty loses;
~e have the same constituency, 100 percent of tbe peopJe INc in: a county and' a schoo! district., aed tho: vue majority
also live i .. city,
-We prO\lide matty !Services in CoaUllOc. (hat might be more effectively performed by working coopctau .... ely. purchasing,
'Ou:l1di.ng mlinteaance, re~ ad";c:e.. pubtlc informalion,. dts.a.ster aad emcrgcllCjl pl.ilnning, recreation programs and
racili~ youtb and sc.c.lor citizens' 5Crv1CC$, buildillg ilUipeaioc., iBw enforcement, sigDa! mainte:calH::e,. persoll:ce~ payroll.
ta.bc.r rr:!arious., employee beDcfils, tnlirung and.staff d~"elopm(;nt, data processing, communic.alions, energy co!l.U:fVatioa.,
i.easi.ns of building:! Of' property, vehicle maintenance and corporatio[l yanis,
-We often make decUioc.s that impaCl ,each ot!J.er,
-We rccogtlize that the financial "';abiliry of Oile agency can. impact th~ economic: healtb of other jurisdiClioIl5;
·Eacb cty, county and school d1ilrid D~ds 10 be concerned wllb., and aware 0[, problems tjf otber ju:risdic:tions...
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Therefore., we declare lhaI in order to maximize: productive and efficient working ret.aliollShips Ibal will enable aD ageooe$lO mOTe
cfrt:ctive!y s.eJ'\It the public., the ronowiag acrioll!o are tleces.sary and ..-e commit ou~c1\1es to there implementation::
STRENGTHEN COI'{MlP.o7CAT70N AND COOPERAT70N MIONG PUBLIC AGEgClES
SEEK 'WIN/WlN" SOLrrnONS TO PROBLEMS
SPONSOR AND SUPPORT MImJALL Y BENEFICIAL LEGISLA TfON
IDENTIFY POSlT7VE PROGRAMS AJ>lD PROJECTS 71lAT CAN BE DEVELOPED JOINTLY
SEEK NEw, BETTER, MORE PRODUC77VE AND DlFFERENT WAYS OF WORKING TOGETHER
JOINTLY ADVOCiTE T1fE DEVELOI'MENT OF STABLE .<ND ADEQUATE REVEl'VE SOlfll.CES FOR
CT77ES, COUNT7ES AND SC'fOOL DISTRiCTS
In support of this declaration we commit oUiSC1~ to work joirl(fy And ~ooperatj~ly logetru:r £0 accomplish these pmposals .lad
goals as wcn U 10 promote rc:torru th .. t is supportive of rl.SQl intcrdcpecder.cy.
Adort~:
Lc:ag'Jc of Ca.!ifornia Cities
California School Boards Associa,ioo
COun!)' Supe:rv\sors _A..s.5ocialion of CaJuornia
Bay Area Scboo! District Rcpre.seo~ative:s
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DEClARATION OF FlSCAL INTERDEPENDENCE
ENDORSEMENT
The Declaration of FlStallnterdependenc, was endorsed Lie __ day of _~ 1991 by
the City Council/Board of Super"';"Jrs of ________ _
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signarure signature
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signature signat'ze
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ATrEST:
Clerk
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