HomeMy WebLinkAboutMINUTES - 02051991 - S.7 TO: BOARD OF SUPERVISORS
FROM.
Supervisor Tom Torlakson Contrp
Costa
DATE: February 5 1991 County
SUBJECT: FINANCING OPTIONS AND COALITION CONCEPT PROMOTED AT ABAG
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOIMNDEb ACTION: Refer to the Finance Committee and the
City-County Relations Committee for review the strategy being
developed at ABAG for financing options and the process for building a
coalition between cities, school districts and counties .
BACKGROUND INFORNATON: Reference the attached minutes of
the ABAG Legislation and Governmental Organization Committee, dated
January 3, 1991, attached. The Legislation and Governmental
Organization Committee and the Executive Committee, on which I both
serve, have been developing a strategy for bringing schools, cities
and counties into a close working relationhip in order to address this
year's state budget with as great a united front as possible.
Review the attached minutes and fiscal reform guidelines . I
encourage all Board members to attend the ABAG General Assembly
session where this strategy will be further discussed before
implementation.
TT:gro
Attachment
CONTINUED ON ATTACHMENT: YES SIGNATURE: G'
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(W
ACTION OF 130ARD ON e ruarV 797 APPROVED AS RECOMMENDED 'r OTHER
VOTE OF SUPERVISORS
X UNANIMOUS (ABSENT --- ) I HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISORS ON THE DATE SHOWN.
CCs County Aa lni,_listrator ATTESTED webruary 5 , 19?1
Finance Condi ttec phil Batchelor,Clerk of the Board of
City-Council Relations Cte Supervisors and CountyAdministraty
M3e2/7.OS BY DEPUTY.
ASSOCIATION OF BAY AREA GOVERNMENTS
LEGISLATION & GOVERNMENTAL ORGANIZATION COMMITTEE
JANUARY 3, 1991
SUMMARY MINUTES
Members Present
Councilmember Barbara Rogers, Santa Clara County Cities, Chair
Vice-Mayor Shirley Sisk, Alameda County Cities, Vice-Chair
Mayor Gary Falati, Vice-President
Supervisor Mary Griffin, President
Mayor M. Patricia Hilligoss, Sonoma County Cities
Councilmember Warren Hopkins, Past-President
Councilmember Vaso Medigovich, Marin County Cities
Mayor Peter Snyder, Alameda County Cities
Councilmember Richard Spees, City of Oakland
Supervisor Tom Torlakson, Contra Costa County
Mern ggrs Absent
None
Other$ 1!rgsent
Revan Tranter, Executive Director
Mary Vail, Assistant to the Executive Director
Cathryn Hilliard, Public Affairs Director
The meeting was called to order at 1:08 p.m.
There was a discussion of the proposed League of California Cities Operation Budget
Freedom three point program that includes restructuring of the Vehicle License. Fee
program to generate additional revenues.for local governments. It was agreed that the
Committee supported the concept although it would be a band-aid approach and would not
close the existing or future revenue and expenditure gap. The,CQmmittee asked staff to find
out from the League if there were revenue projections for the Bay Area of annual revenues
from this change.
Torlakson reported that the County Chief Administrative Officers rejected the League plan
for the replacement of the booking and property tax administration fees with the vehicle
license fee. The GAO's felt that that change is only a piece of the puzzle and would be
inadequate to solve_the problem in the long run.
It was agreed that the Committee would come up with ideas and proposals for Griffin to
bring to the January 11 meeting that has been scheduled to discuss cooperative efforts to
institute Local Government Fiscal Reform,with representatives of CALCOG,CSBA, CSAC
and LCC. The motions adopted_are strictly for discussion. Griffin was directed to make
clear that these are not ideas endorsed or adopted by ABAG but were developed strictly
for discussion purposes.
Hopkins suggested that rather than increasing revenues it may become an issue of asking
the public to identify which services are to be funded because current levels cannot be
maintained.
After discussion of governmental services reform, consolidation and re-organization, it was
agreed that the initiation of governmental efficiency measures, the streamlining and
consolidation of services and organizations should be a topic for the 11th. This should ,\
include the provision of incentive funds for agencies that institute cost saving measures and 1
the removal of legislative removal of the current barriers, in law and the constitution, to �
cooperation and sharing of resources by cities, counties and school districts. Moved by
Torlakson/s/Hopkins/c/unanimously.
As the next discussion item an exploration of the total repeal of Proposition 13 and
restructuring of the property tax system was proposed. It was agreed that at a minimum a
repeal of the 2/3 voter approval requirement for the imposition of any new taxes should be
considered. Moved by Snyder/s/Torlakson/c/7 ayes/3 noes.
Next was consideration of the complete replacement of the property tax with a revised state
income tax system. Some possibilities discussed were a flat percentage tax or an indexed
system, increasing rates with increased income. Moved by Medigovich/s/Torlakson/c/7
ayes/3 noes.
The Committee asked staff to determine the total annual taxable income in the Bay Area
and calculate what level of flat income tax would be needed to fund all existing local
government expenditures.
The Committee discussed the need for in-depth background and position papers on these
issues and research on the effects of these proposed revenue structure changes on total
revenue streams.
The next identified discussion item was the identification of revenue streams from
restructured or new user taxes and fees, including the recently defeated alcohol tax. To be
included in any new tax structure is a guaranteed revenue stream to local governments.
Moved by Torlakson/s/Falati/c/unanimously.
The Committee agreed that it will be important for all cities and counties to be in contact
with Governor Wilson to remind him of the importance of this issue and his commitment
to work with local governments.
In another discussion item for the January 11 meeting the Committee agreed to support the
League's proposal to permanently extend the Vehicle License Fee depreciation schedule by
one year to provide replacement revenues for county general fund and provide for the
repeal of the SB 2557 provision for booking fees and property tax administration costs,with
the understanding that this is not the solution, it is not true reform, and will only serve as
a band-aid that probably will not close the revenue and expenditure gap that currently exists.
The other two elements of the LCC plan, calling together leadership of cities, counties,
schools and the state to develop meaningful fiscal reform and the guarantee to the counties
of the same taxing authority in the unincorporated areas as cities were also supported.
Moved by Sisk/s/Torlakson/c/unanimously.
The Committee also agreed to reinforce the concept that any fiscal reform should retain all
existing local government revenue streams and taxing authority, whether by legislation or
initiative. Moved by Torlakson/s/Medigovich/c/unanimously.
The Committee directed staff to send out an update of the iesults of the January 11 meeting
prior to the Committee's next meeting on January 17 in order for the Committee to be
prepared to discuss the actions and make a recommendation to the Executive Board.
A summary of the discussion direction given to Griffin is to be forwarded to the Executive
Board in its January 17 agenda packet to give the Board time to review these issues prior
to the meeting.
The Committee suggested that a report with models of potential revenue streams from
different changes should be prepared to assist the evaluation and potential of certain ideas.
A League of California Cities task force developed a statewide model for evaluating
potential revenue from various sources several years ago and it was suggested that this might
be updated. Staff was directed to contact the League about the status of this.
Hilliard presented the draft agenda for the General Assembly meeting on Local
Government Fiscal Reform. Members gave input and suggested changes to the speakers.
The Committee felt that it would be important to have members of the Legislature on a
panel to address.the state's plans.
The meeting adjourned at 3:00 p.m.
min.13
1/3/91