IN THIS ISSUE: Dec. 14, 2007
Issue #47-2007
Page 3: A Reminder on Prop. 1A Protection of Major Revenue
Page 4: Final Transit-Oriented Development Guidelines Released
Nominations Now Being Accepted for League City Managers Department Awards
Page 5: League 2008 Annual Conference: Call for Session Proposals
Find a Bill, Legislator, Leg Committee, or Ask League Staff
Editor’s Note: Priority Focus will not publish on Friday, Dec. 21 or Friday, Dec. 28. Regular
publication will resume on Friday, Jan. 4, 2008. Happy holidays!
NEW LEGAL ANALYSIS WARNS ‘EMINENT DOMAIN’ INITIATIVE THREATENS
CALIFORNIA’S LANDMARK GLOBAL WARNING LEGISLATION (AB 32)
Other Environmental and Rent Control Protections Also At Risk
A new, independent legal analysis by Shute, Mihaly & Weinberger LLP, one of California’s
leading environmental law firms, has warned that the California Property Owners and Farmland
Protection Act (CPOFPA) could hinder the implementation of AB 32, California’s landmark law to
reduce greenhouse gas emissions. For more, see Page 2.
•••• ••• ••• •• •••• ••• ••• •• •••• ••• ••• ••
PROP. 1B LOCAL STREETS AND ROAD FUNDS AVAILABLE JAN. 15
The California Department of Finance (DOF) earlier this week announced that instructions and
forms for allocating Proposition 1B local street and road funds would be sent to cities and
counties by Jan. 15, 2008. For more, see Page 2.
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LAKEWOOD HONORED WITH LEAGUE’S NEW CITY ‘ADVOCACY AWARD’
The city of Lakewood was honored with the League of California Cities’ first “City Advocacy
Award” on Tuesday, Dec. 11, at the Lakewood City Council meeting.
Lakewood was selected in recognition of the city’s outstanding commitment to legislative
advocacy, including the establishment of an inter-governmental relations committee, annual state
legislative priorities for the city, maintaining active relationships with local legislators and
participation in League advocacy efforts. For more, see Page 2.
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‘Eminent Domain’ Continued from Page 1…
The measure would also roll back rent control protections and have a devastating impact on other
laws and regulations intended to protect the environment.
The laws and regulations that the analysis states could be impaired or stopped under this
measure include:
• AB 32 implementation regulations
• California Environmental Quality Act mitigations
• Water supply and water quality protections
• Urban limit lines and other growth control measures
• Protections of endangered species and their habitats
• Protection of coastal areas, farmland, and ranchland, as well as cultural and historic sites
• "Smart growth" regulations
• Ordinary zoning regulations
The landlords sponsoring CPOFPA are falsely claiming that their initiative has no “regulatory
takings” impacts or impacts on the environment. This new legal analysis proves otherwise.
Specifically, the analysis points out:
“The initiative prohibits regulations affecting the use of real property that are enacted ‘in order to
transfer an economic benefit to one or more private persons at the expense of the property
owner.’ Put simply, nearly all regulation provides an economic benefit to some private person.
Accordingly, although the initiative is ambiguous in several significant areas, a court could
interpret it to restrict a host of environmental and land use regulations that would be plainly
legitimate under existing law.”
Independently commissioned by the California League of Conservation Voters Education Fund, a
copy of the complete legal analysis can be downloaded at www.clcveducationfund.org.
_____________________________________________________________________________
‘Prop. 1 B Funds Available’ Continued from Page 1…
This long-awaited announcement was delivered via letter on Dec. 10 to Sens. Mike Machado,
Bob Dutton and Christine Kehoe. The letter (hosted at www.cacities.org/fundingstatus) was
written in response to questions raised by the senators as to the specific reasons for the delays in
a special hearing on Dec. 3.
The League of California Cities thanks the senators for raising these questions, and looks forward
to continuing to work with DOF on implementation issues.
_____________________________________________________________________________
‘Lakewood City Advocacy Award’ Continued from Page 1…
For more than two decades, Lakewood has played an active role helping the League accomplish
its legislative goals. The city first became involved after City Manager Howard Chambers read an
article in Western City magazine, highlighting how one city implemented a system to quickly
respond in the fast-paced legislative process.
Mayor Diane DuBois commented on Lakewood’s investment to legislative action at the state
level, explaining how legislative advocacy has been engrained in the city for many years.
"The Lakewood City Council knows the value of staying close to the legislative process, thanks to
the guidance the League of California Cities has provided,” she said. “We continue to be partners
with the League’s member cities in making the interests of local government known by working
with our own state legislators. We've seen the benefit to Lakewood residents of our consistent,
knowledgeable, and timely advocacy."
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League Legislative Director Dan Carrigg presented an award plaque to the Lakewood City
Council, remarking just how vital Lakewood and cities in general are to the League’s success.
“The League relies on its member cities like Lakewood to work with us collectively to make sure
that the state government hears the voices of our cities loud and clear,” Carrigg said. “When
cities lobby in Sacramento they in fact protect vital local community services—parks, public
safety, recreation programs, library services, local streets and roads. It’s about creating and
maintaining vibrant communities for everyone who lives in a city.”
_____________________________________________________________________________
A Reminder on Prop. 1A Protection of Major City Revenue
As estimates of the California’s chronic general fund budget problem continue to grow, local
officials are warily checking their wallets. It isn’t too long ago when the California Legislature
looked to local revenues to help solve budget shortfalls.
But in Nov. 2004, the landscape changed as far as the Legislature’s authority to take major local
revenues. By an unprecedented 84 percent “yes” vote, Californians adopted Proposition 1A, an
amendment to the California state constitution that protects vital local revenues.
Prop. 1A prohibits the state from:
• Shifting property taxes from cities, counties or special districts with certain exceptions;
• Reducing the local Bradley Burns Uniform Sales & Use Tax rate or altering its method of
allocation (except to comply with federal law or an interstate compact);
• Decreasing vehicle license fee (VLF) revenue from the 0.65 percent rate without
providing replacement funding to cities and counties. The state may charge for
administrative costs (California Department of Motor Vehicles, Controller) and the
Legislature retains the power to change state law allocating VLF revenue among cities
and counties; and
• Failing to reimburse to cities and counties for local sales tax revenues shifted to fund
state economic recovery bonds under the triple-flip (for more on the triple-flip, visit
www.californiacityfinance.com).
From left to right: Lakewood Mayor Diane DuBois,
League Legislative Director Dan Carrigg, and Lakewood
Deputy City Manager Lisa Novatny. (League
Photo/Kristine Guerrero) 4
State Mandate Funding
Prop. 1A also expands definition of “state mandate” to include the transfer of responsibility of a
program for which the state previously had full or partial responsibility. Under Prop. 1A, the state
is required to suspend any state mandate upon local government in any year the Legislature does
not fully fund the mandate, including for all costs incurred in prior years.
Emergency Temporary Suspension of Property Tax Protection
Beginning in FY 2008-09, the Legislature may temporarily suspend the property tax revenue
protection provisions of Prop. 1A under certain very restrictive conditions. The Legislature may
“borrow” not more than 8 percent of total property tax revenues (currently around $2 billion) if:
1. The Governor issues a proclamation of “severe fiscal hardship;”
2. The Legislature enacts an urgency statute suspending Prop. 1A property tax protection
with two-thirds vote of each house; and
3. The Legislature enacts a law providing for full repayment of the “borrowed funds” plus
interest within three years
The Legislature may not enact such a suspension more than twice in any 10-year period and may
only do so if any previous borrowing under this provision has been repaid.
Similar Protections for Prop. 42 Transportation Sales Tax in Prop. 1A of 2006
Prop. 42 of 2002 earmarked revenues from the state sales tax on gasoline for transportation
purposes including local streets and roads. Under longstanding provisions of Prop. 42 and its
implementing legislation, cities and counties received no allocations this year. In FY 2008-09,
however, cities are due to receive nearly $300 million (allocated on a per capita basis), with a like
amount allocated to counties, and another $300 million to public transportation.
In Nov. 2006, the voters of California approved another Prop. 1A, this one providing protections
for the Prop. 42 transportation sales taxes. Similar to the property tax protections in Prop. 1A of
2004, the 2006 measure provides that the Legislature may borrow revenues Prop. 42, but only
under the same stipulations posted for Prop. 1A (2004) listed above.
For more information on Prop. 42 and Prop. 1A (2004), visit www.californiacityfinance.com.
_____________________________________________________________________________
Final Transit-Oriented Development Guidelines Released
Last week, the California Department of Housing and Community Development (HCD) published
final guidelines for its transit-oriented development program. The guidelines will be used for the
application process and notice of funding availability. Applications are due March 7, 2008.
Cities are encouraged to review the guidelines, which are available at www.hcd.ca.gov/fa/tod/.
_________________________________________________________________________
Nominations Now Being Accepted for League City Managers Department Awards
Do you have a colleague or city manager that has gone above and beyond the call of duty to
contribute to their communities, or promoted the advancement of diversity within their community
and workplace? If so, it’s time to recognize them with a nomination for the 2008 John H. Nail
Memorial Award or the 2008 Award for the Advancement of Diverse Communities.
The John H. Nail Memorial Award was created by the League of California Cities City Managers
Department in honor and memory of a highly regarded city manager and individual. This award
recognizes local government administrative professionals who are serving as municipal
assistants (regardless of position or title) and have contributed significantly to their communities.
5
The Award for the Advancement of Diverse Communities was established by the City Managers
Department and honors a city manager or assistant city manager who has been most successful
in promoting the advancement of diversity within the community and the workplace through the
development and implementation of effective programs, policies and/or practices encouraging
diversity.
Nomination applications for each award are available at www.cacities.org/managers, under “2008
John H. Nail Memorial Award & Award for the Advancement of Diverse Communities.” The
application deadline is 5 p.m., on Friday, Dec. 21. Applications should be sent to the following
address:
League of California Cities
Attn: Natasha Karl
1400 K Street, 4th Floor
Sacramento, CA 95814
For more information on the awards, contact League Legislative Analyst Natasha Karl at (916)
658-8254.
_____________________________________________________________________________
League 2008 Annual Conference: Call for Session Proposals
Do you have a great idea for a session at the 2008 League of California Cities Annual
Conference? If so, the League wants to hear from you! This is an exciting opportunity to share
your ideas, knowledge and expertise with local government staff, elected officials and decision
makers.
Each year, the League receives more than 200 submissions for 50-55 session slots. Annually,
the conference hosts approximately 2,200 attendees from across the state, including mayors,
council members, city attorneys, city managers, city clerks, municipal assistants, public works
officers, planners, planning commissioners, fiscal officers and city department staff. An exhibition
with over 320 vendors is also showcased.
The 2008 conference theme is “Sailing into the Future” and will be held at the Long Beach
Convention Center, Sep. 24-27, 2008. Submissions on any topic area are welcome. Please note
that only fully completed proposal forms submitted on or before noon on Tuesday, Jan. 15, 2008,
will be considered by the 2008 Annual Conference Program Planning Advisory Committee.
Any individual, group, business or organization may submit full proposal suggestions. Please
visit www.cacities.org/events for additional details and submission form or contact the League at
education@cacities.org.
_____________________________________________________________________________
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
Visit (and bookmark!) the League’s Legislative Resources Web page
(www.cacities.org/legresources). You’ll find a roster and contact information for the League’s
legislative staff; the online Bill Search program, background materials on lobbying your
legislators, and more.
_____________________________________________________________________________
IN THIS ISSUE: Jan. 4, 2008
Issue #1-2008
Page 3: CalTRUST Unscathed by Turmoil in Financial Markets
Priority Focus to Feature New Sustainable Cities Series
Page 4: Grant Writing Workshops Announced
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
LEAGUE BOARD MEMBERS TO SERVE IN SPECIAL LEADERSHIP
POSITIONS WITH NLC
The National League of Cities (NLC) announced in Dec. 2007 the appointment of several League
of California Cities board members to leadership positions on committees during 2008. Those
members selected include Dan Furtado, council member, Campbell; Tzeitel Paras-Caracci,
council member, Duarte; and Pat Eklund, mayor, Novato. For more, see Page 2.
•••• ••• ••• •• •••• ••• ••• •• •••• ••• ••• ••
FREE SERIES OF CLIMATE CHANGE MEETINGS SCHEDULED
The California Environmental Protection Agency, in collaboration with the University of California,
Davis, is offering a series of free meetings to explain the different aspects of climate change. The
meetings are scheduled for every other Thursday, beginning on Jan. 17. Titled “Climate Change
101,” the seminar series is for non-specialists on the science, technology and policy aspects of
climate change.
Presented jointly by the Department of Land, Air and Water Resources, UC Davis; John Muir
Institute of the Environment, UC Davis; Air Quality Research Center, UC Davis, and the UC
Institute for Research on Climate Change and its Societal Impacts; the seminars will be held at
the CalEPA Building, located at 1001 I Street, in Sacramento.
For a copy of the meeting schedule and more information, visit the “Meetings and Events” section
of www.climatechange.ca.gov. For more, see Page 2.
•••• ••• ••• •• •••• ••• ••• •• •••• ••• ••• ••
A REMINDER ON THE UPCOMING DIGITAL TV TRANSITION
TV stations across the country will switch from analog to digital television (DTV) on Feb. 17,
2009. Before this federally mandated transition occurs, however, the public will need information
about how to convert their televisions to the new format and some may turn to their city for help.
The following is a quick primer on the transition to better serve city residents.
For more, see Page 2.
2
‘NLC’ Continued from Page 1…
Furtado was appointed chair of the Public Safety and Crime Prevention Policy and Advocacy
Committee. Appointed the League’s Public Safety Policy Committee in 2000, Furtado, also a
three-time mayor, comes to his new NLC position with solid experience in public safety issues.
late 2001, he was appointed to NLC’s Special Working Group on Homeland Security. The
group’s work was ultimately absorbed into NLC’s Public Safety Policy Committee.
Recently elected to NLC’s board of directors, Paras-Caracci has been selected chair the
CityFutures Panel on Democratic Governance. Paras-Caracci, the youngest person elected to
Duarte’s city council, has been engaged in the political process since high school. The
CityFutures Panel on Democratic Governance operates as a “clearing house” for civic
engagement strategies.
Eklund, a past president of the League of California Cities, will bring her leadership experience as
chair to NLC’s Western Municipal Conference. This special conference was created to act on act
on policy and political maters from a Western perspective as well as serve as a forum for
collaboration and information exchanging among western state and local officials.
_____________________________________________________________________________
‘Digital TV’ Continued from Page 1…
What is Digital TV?
DTV provides crystal clear pictures and higher quality sound as well as the capacity for more
channels. Unlike analog signal, DTV transmits the sound and picture information as “data bits”
similar to a computer. Stations will be able to broadcast multiple channels simultaneously with
this new technology. This technology also offers other features such as enhanced closed
captioning ability.
Switching to DTV
According to the National Association of Broadcasters, approximately 1.99 million California
households use a traditional antenna and will not continue to receive free television after the
conversion date without taking one of three actions:
• DTV Converter Boxes. Consumers without cable who have a traditional analog TV will
need to purchase a DTV converter box. This is an electronic device that connects to
analog televisions and over-the-air antennas to convert the digital signal to analog. The
cost is expected to be $50-$70.
The National Telecommunications and Information Administration (NTIA) will be issuing
coupons for DTV converter boxes in early 2008. Each household can apply for two
coupons. The coupons are valued at $40 each and can be used towards the purchase of
the DTV converter box. They must be redeemed within three months.
For more information about the coupon program please visit
www.ntia.doc.gov/dtvcoupon.
• Digital TV sets. TVs with a built-in digital tuner will be able to receive digital signals
broadcast by stations. Consumers with these TVs will still get their free programming
without paying a monthly fee.
• Paid Service. Consumers who subscribe to a cable, satellite or telephone company
service provider will continue to be able to use their existing TV to receive local broadcast
stations carried by their service.
NAB has set up a Web site with information for consumers at www.dtvanswers.com.
_____________________________________________________________________________
3
CalTRUST Unscathed by Turmoil in Financial Markets
Given the ongoing turmoil in the financial markets and the recent disclosures of problems in a
number of public agency pools the Investment Trust of California (CalTRUST) is pleased to
announce that the CalTRUST Short-Term portfolio has very good credit quality, more than
adequate liquidity and is built and managed to withstand the current market disruption.
This judgment recently has been validated by Standard & Poor’s, which has reconfirmed its AA-
rating of the portfolio’s credit quality and its “S1+” rating of the portfolio’s volatility (“extremely low
sensitivity to changing market conditions”).
Portfolio Review
The Short-Term Account has delivered solid performance since its inception – 17 basis points per
year above its benchmark (LAIF) on a net basis, for the two years ending Nov. 30, 2007; and 18
basis points per year on a net basis, since inception in Feb. 2005. More importantly, however,
this performance has been achieved without accepting additional risk in the portfolio.
As of Friday, Dec. 14, the CalTRUST Short-Term portfolio had a duration of 34 days, with an
weighted average maturity of 221 days. The liquidity in the portfolio is very good, with more than
47 percent of the portfolio maturing in 30 days or less.
The portfolio has no current exposure to asset-backed commercial paper (ABCP) and the
CalTRUST board will refrain from any ABCP acquisitions until liquidity has returned to the market.
Additionally, the portfolio has no structured investment vehicles (SIVs) or collateralized debt
obligations (CDOs); and never has held any of these securities.
CalTRUST Is Built For Participant Protection
The CalTRUST program is totally transparent. Participants can review all portfolio holdings at
any time on the CalTRUST Web site in virtual real-time; portfolio holdings are updated at the
close of business each day. Relative to many pooled programs which report their holdings on a
monthly or quarterly basis, the CalTRUST program eliminates the risk of “hidden surprises”
becoming apparent after most of the damage has been done.
In addition, the CalTRUST Short-Term Account is marked-to-market each day, and participants’
account values are updated daily to reflect the current market value of the portfolio holdings.
While mark-to-market enables participants to easily monitor the performance and quality of the
portfolios holdings; it also eliminates the risk that some participants could exit the program at par,
while leaving the remaining participants to realize any losses at a disproportionate level.
As a program created by local agencies to serve the investment needs of local agencies, we at
CalTRUST are always open to suggestions for improving the benefits, flexibility and convenience
of the program.
For questions regarding the program or suggestions for improvement, e-mail
calomeli@solanocounty.com. Any questions regarding current portfolio strategy or management
may be directed to CalTRUST Investment Adviser Terry Crow, chief investment officer, Wachovia
Portfolio Services, at terry.crow@wgsl.com.
_____________________________________________________________________________
Priority Focus to Feature New Sustainable Cities Series
To kick off 2008, Priority Focus will be featuring a series of articles that highlight innovative
practices California cities are using to promote sustainability. Inspiration for the new series is
based on one of the League of California Cities’ 2008 strategic goals to “support green and
sustainable cities.”
The series will profile individual cities’ efforts on a variety of fronts, including green house gas
emissions reduction, energy efficiency, alternative energy use, adopt sustainable land use and 4
building practices, improved water supply and wastewater treatment system efficiencies,
expanded public transit and more.
Is Your City Making Innovations in Sustainability? Send Us Your Story!
We want to hear about the latest your city is doing to be more sustainable. Has your city recently
converted its vehicle fleet, installed solar on city buildings or perhaps developed a public
awareness campaign to encourage your residents to conduct an energy audit? These are the
kinds of stories we want to hear.
Each story will run approximately 300 words, and when possible, will include photos to illustrate
the innovation.
Questions and submissions should be sent to League Communications Director Eva Spiegel at
espiegel@cacities.org.
_____________________________________________________________________________
Grant Writing Workshops Announced
Grant Writing USA has announced its California schedule of workshops for the next five months.
Each two-day workshop focuses on grant writing strategies as well as resources to locate grant
funders. The majority of attendees come from state and local government.
The $425 tuition includes all class materials, access to Grant Writing USA’s alumni forum and
free proposal review for one year.
Registration:
Register online at www.grantwritingusa.com, or call (800) 814-8191.
Scheduled California Classes
Modesto, Jan. 10-11
Hosted by the Modesto Police Department
Palm Springs, Jan. 17-18
Hosted by Bridges of Hope Community Center
Riverside, Feb. 20-21
Hosted by Riverside County Human Relations
San Diego, March TBA
Hosted by San Diego Sheriffs Department
San Luis Obispo, April 24-25
Hosted by United Way of San Luis Obispo
Anaheim, May 15-16
Hosted by the Anaheim Police Department
_____________________________________________________________________________
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
Visit (and bookmark!) the League’s Legislative Resources Web page
(www.cacities.org/legresources). You’ll find a roster and contact information for the League’s
legislative staff; the online Bill Search program, background materials on lobbying your
legislators, and more.
_____________________________________________________________________________
IN THIS ISSUE: Jan. 11, 2008
Issue #2-2008
Page 6: Prop. 1B Proposed Goods Movement Guidelines Available
U.S. Communities Offers Life-Saving Automated External Defibrillators
Page 7: Save the Date: League Events Scheduled for NLC 2008 Congressional City Conference, March 10-12
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
GOVERNOR OUTLINES SOLUTIONS TO FILL CURRENT YEAR BUDGET GAP AND
ADDRESS PROJECTED DEFICITS FOR FY 2008-09
Cuts Primarily to State Programs and Services: Local Property Tax and Prop. 42
Revenues Not Affected
Gov. Arnold Schwarzenegger released his proposed budget Jan. 10. He began by declaring a
fiscal emergency and calling for “true reform” of the budget process to provide the state with a
permanent solution to the systemic structural deficit. For more, see Page 2.
•••• ••• ••• •• •••• ••• ••• •• •••• ••• ••• ••
SCHWARZENEGGER CALLS FOR PERMANENT SOLUTION TO BUDGET WOES IN
STATE OF THE STATE ADDRESS
Gov. Arnold Schwarzenegger in his annual State of the State speech Tuesday, Jan. 8, said that it
is time for California to face its budget demons. He outlined a series of proposals, including a
constitutional amendment, intended to provide permanent structural changes to stabilize the
state’s chronic budget imbalance between revenues and expenditures. For more, see Page 5.
•••• ••• ••• •• •••• ••• ••• •• •••• ••• ••• ••
REPORT RELEASED ON PENSION AND RETIREE HEALTH BENEFITS
State and local governments face a $118 billion shortfall in unfunded retiree health benefits
according to a report released earlier this week by the Public Employees Post-Employment
Benefits Commission (PEBC). For more, see Page 5.
2
‘Budget’ Continued from Page 1…
Echoing his remarks in his State of the State address Tuesday, Jan. 8, Gov. Schwarzenegger
unveiled his Budget Stabilization Act, a constitutional amendment that would establish a
mechanism to cap spending when revenues are high, helping prevent future deficits.
The Governor outlined a two-pronged approach to deal with both the projected budget deficit for
the current fiscal year (2007-08) and the structural deficit in FY 2008-09.
Governor’s Proposed Solution to FY 2007-08 Imbalance
In the FY 2007-08 budget the Legislature passed last August, the Governor projected a $4 billion
surplus at the end of the year. However, because of the housing slump and subprime mortgage
crisis, state revenues have dropped to such a level that there is no surplus, and the state lacks
funding to fulfill its current financial obligations.
To close this gap, the Governor announced that he will sell the remaining $3.3 billion in Economic
Recovery Bonds (ERB) by February 2008. For local governments, the effect is that the
anticipated sunset of the triple flip mechanism will be delayed several years, to 2012 or beyond.
The triple flip mechanism was established by Proposition 57 (2004), the Economic Recovery
Bond Act. It involves taking a quarter-cent of the local sales tax to repay these bonds and
reimburses local governments’ losses on a dollar-for-dollar basis with property tax.
As another means to address the projected shortfall, the Governor proposed cutting $217 million
from state agencies. The 10 percent across the board to state agencies and programs cuts Gov.
Schwarzenegger proposed will take effect March 1, 2008. He is also seeking to delay payments
on $6.24 billion in funding intended for a variety of existing programs including; K-12 schools,
state teachers’ supplemental benefits and various Medi-Cal and other health programs.
Proposal Includes Delay in Highway User Tax Payments
The Governor is proposing to delay payment of approximately $500 million of payments of
Highway Users Tax (per gallon Gasoline Excise Tax) payments to local governments. Cities and
counties receive about $100 million per month of these revenues. The Governor has proposed to
suspend these payments for a five-month period (April-August 2008) to be paid in full without
interest in September 2008. The League is analyzing this proposal for impacts on cities.
The Administration is citing the authority to delay payment pursuant to Section 6 Article 19 of the
California Constitution, which permits borrowing of these funds under certain conditions but
requires repayment either within 30 days of the adoption of the budget bill for the subsequent
fiscal year or within three years. (At this point, the proposal is suggesting the shorter pay-back
period.) This section of the Constitution also authorizes the Legislature to establish a loan
program to offset the temporary losses experienced by local government.
Note that these are revenues from the Motor Vehicle Fuel Tax (also called the Gasoline Excise
Tax or the Highway Users Tax) allocated among local governments and state transportation
funds pursuant to California Streets & Highways Code §§2104-2108. These are not revenues
derived from the Proposition 42 sales tax on gas.
Governor’s Proposed Solution to Fix FY 2008-09 Imbalance
For the fiscal year that begins July 1, the Governor proposes to cut funding across all state
agencies by 10 percent. These cuts have many significant impacts on state programs, including
education, with the suspension of Proposition 98. Gov. Schwarzenegger has not proposed to
take property taxes from local governments under Proposition 1A (2004), nor has he proposed to
taking any transportation funds under Prop. 42, protected by Proposition 1A (2006).
Across the Board Cuts Impact Public Safety Programs
Payments to counties for Local Detention Facilities (Gov Code Sec 29552) have also been
reduced by 10 percent to $31.5 million. Current law stipulates that in any year the budget 3
appropriates less than $35 million, counties may impose booking fees on cities in proportion to
the under appropriation.
For additional information please see http://www.californiacityfinance.com/BkgFees070831.pdf.
Funding for Gang Abatement Programs: Included in the budget proposal is funding for gang
and youth violence prevention including:
• $1.3 million to establish the Office of Gang and Youth Violence Policy
• $5.3 million to fund the Department of Justice’s four existing Gang Suppression
Enforcement Teams permanently
Transportation Funding
Proposition 42 Fully Funded: Following two Prop. 42 gap years, cities and counties will
statutorily receive these funds again beginning in FY 2008-09. The Governor has proposed fully
funding the program including $594.2 million specifically for cities and counties. This amount is a
significant increase in prior allocations due to the statutory elimination of funding for the Traffic
Congestion Relief Program.
The budget proposes to fully fund Prop. 42 at $1.5 billion which includes:
• $594 million for the State Transportation Improvement Program (STIP)
• $297 million for cities (local streets and roads)
• $297 million for counties (local streets and roads)
• $297 million for the Public Transportation Account (PTA)
Proposition 1B: Prop. 1B, which passed in November 2006, included $2 billion in funding for
transportation projects. The 2007 Budget Act appropriated $950 million of these bond funds.
However, no additional Prop. 1B bond funds for local streets and roads are proposed to be
allocated in FY 2008-09.
The proposed budget does include $4.7 billion in bond allocations for the following:
• $1.547 billion for Corridor Mobility Program
• $350 million for Local Transit Program
• $1.186 billion for State Transportation Improvement Program
• $500 million for Trade Corridor Program
• $200 million for State/Local Partnership Program
• $216 million for State Highway Operations and Protection Program
• $65 million for Grade Separation Program
• $108 million for Highway 99
• $21 million for local seismic retrofit projects
• $73 million for intercity rail
• $250 million for air quality
• $101 million for transit security
• $58 million for port security
Public Transportation Account: The proposed budget allocates $1.343 billion to the Public
Transportation Account (PTA) for a variety of transit purposes. This amount includes $455 million
of “spillover” revenue. The total spillover amount projected for FY 2008-09 is $910 million, half of
which will be transferred to address non-transit programs as established under SB 79 in last
year’s budget.
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Housing
The Governor’s budget proposes $771 million in Proposition 1C funding for FY 2008-09. This
funding includes:
• $200 million for Regional Planning Housing and Infill Incentive Account
• $95.5 million for the Affordable Housing Innovation Fund
• $30 million for the Housing Urban-Suburban-Rural Parks Account
• $96 million for Transit-Oriented Development Implementation Fund
Environment/Resources
Over the last decade, environmental programs at the state level have largely been funded
through special fees and ballot measure. Because of this, budget reductions in the General Fund
do not typically impact these programs. Impacts may be felt in time delays for the processing of
state permit applications such as National Pollution Discharge Elimination System and Local
Coastal Plan Amendments.
In addition, there are a few areas specifically that may have city impacts including:
• The budget proposes to reduce funding for the Subventions for Open Space (Williamson
Act) by $3.9 million.
• The potential closure of 48 state parks may increase pressure on local emergency
responders and law enforcement.
Flood Protection: The proposed budget includes $598 million from Proposition 1E to fund a
variety of flood response and levee improvements.
Proposition 84: The budget proposes the expenditure of $1 billion in Prop. 84 funds for a variety
of natural resource programs.
Governor’s Wildland Firefighting Initiative
The Governor is proposing legislation that would enact a 1.25 percent surcharge on residential
and commercial property insurance policies to fund the recommendations of the Blue Ribbon
Commission created after the 2003 Southern California fire storms. The projected $125 million
generated annually over six years would fund various programs including expansion of the Office
Emergency Services engine flee, GPS systems, a reverse 911 system for counties that do not
have one and a state-wide warning system.
Mandates Reimbursement Funding
The FY 2008-09 proposed budget includes $139 million for reimbursement claims for costs
incurred prior to July 1, 2007. Of this amount, $75 million is proposed for the third payment of
reimbursement claims owed to local governments for cost incurred prior to July 1, 2004.
Additional Infrastructure Bonds Proposed: During his statement Thursday, the Governor
discussed additional bond measures as part of his Strategic Growth Plan to expand the state’s
water supply and fund K-12 and higher education facility improvements and courthouse repairs.
The League will provide additional information on these proposals at a later date.
Budget Negotiations Will Continue
There is a great deal of action expected this year on the budget. The Legislature, in accordance
with Proposition 58, has 45 days to respond to some of the Governor’s proposals to address the
declared fiscal emergency.
The proposed across the board cuts are sure to trigger many other discussions about how best to
address the state’s deficit. The League will continue to analyze the many details in the
Governor’s proposed budget and provide updated materials to city officials. 5
A copy of the Governor’s budget can be accessed at http://www.ebudget.ca.gov/.
_____________________________________________________________________________
‘State of the State’ Continued from Page 1…
In the address, Gov. Schwarzenegger pointed to years in the past when revenues rose
dramatically, spurring an increase in expenditures that could not be sustained when revenues fell.
He also acknowledged that previously, in times of budget shortfalls, the Legislature took money
from local governments, transportation, bonds and pension funds. Those avenues, however, are
now limited due to several voter-approved initiatives including Proposition 1A of 2004.
California’s projected budget deficit for the 18 month period which began Jan. 1, 2008 is
estimated at $14.5 billion. The Governor spoke of how automatic spending increases are
contributing to this year’s budget problems even though revenues will remain steady, resulting in
spending vastly in excess of available revenues. His proposed a solution modeled on a plan in
place in Arkansas and is designed to cap spending in growth years to save money for future
deficits.
Infrastructure was another theme of Gov. Schwarzenegger’s State of the State address. Our
aging system, he reminded the Legislators, was built to accommodate 18 billion people, not
California’s current population of 37 billion. With a projected $500 billion in infrastructure needs,
the governor wants to expand public-private partnerships because he believes they will produce
more cost effective and efficient results.
For additional details on Gov. Schwarzenegger’s proposed budget for FY 2008-09, please see
“Governor Outlines Solutions to Fill Current Year Budget Gap and Address Projected Deficits for
FY 2008-09” on Page 1.
_____________________________________________________________________________
‘PEBC Report’ Continued from Page 1…
The report was based on a statewide survey of state and local government agencies in California.
PEBC recommended the establishment of a prefunding policy in order to overcome the deficit.
For a copy of the report, and PEBC’s various press releases on the process, visit
www.lao.ca.gov/retireehealth, under the heading “California: California commission advises
funding $118 billion of OPEB liabilities.”
League Activity on the Issue
The League of California Cities has been active on the pension and retiree health benefits issue,
attending various PEBC hearings throughout 2007. The League submitted recommendations
from its working group with the California State Association of Counties (CSAC).
The League's proposal for pension reform includes the need to provide full-career employees
with adequate benefits to continue their standard of living into retirement through fiscally
sustainable contributions by the employers and taxpayers. Public benefits must be supported by
proper actuarial analysis, viewed in the context of compensation, recruitment and retention.
The League also stressed to PEBC the importance of addressing any abuses of the defined
benefit system and the fiduciary responsibility for the system by the California Public Employees
Retirement System (CalPERS), employers and employees.
For a list of the recommendations made to PEBC, see “Governor's Post-Employment Benefits
Commission Prepares for Final Report,” at www.cacities.org/er.
_____________________________________________________________________________
6
Proposition 1B Proposed Goods Movement Guidelines Available
The Air Resources Board (ARB) released its staff report last week on its proposed guidelines for
the Prop. 1B: Goods Movement Reduction Program. This report describes the proposed
guidelines, includes funding targets and discusses proposed $25 million in early grant funding.
For cities interested in the goods movement portion of Prop. 1B, this report will be very useful.
The report can be accessed online at www.arb.ca.gov/bonds/gmbond.
The State ARB and local agencies are partnering in the Goods Movement Emissions Reduction
Program (GMERP). The program addresses rapid pollution emissions and health risks related to
freight movement along the state’s trade corridors. Through GMERP, local agencies, such as air
districts, ports and transportation agencies, provide financial incentives to owners of equipment
used in goods movement to upgrade to cleaner technologies.
_____________________________________________________________________________
U.S. Communities Offers Life-Saving Automated External Defibrillators
U.S. Communities has a master contract that enables public agencies to purchase automated
external defibrillators (AED) at a discounted price. These devices are critical to help save victims
of sudden cardiac arrest (SCA) by delivering an electric shock through the chest to restore the
heart to its normal rhythm.
Readers of the December 2007 issue of Western City magazine learned about how immediate
access to AEDs saves lives in League President Jim Madaffer’s President’s Message. President
Madaffer, a San Diego city council member, spearheaded a campaign to make the devices as
readily available as fire extinguishers in his community. As of October 2007, 4,000 units had
been installed throughout San Diego County saving at least 45 lives.
Hagemeyer is U.S. Communities’ source for AEDs as well as homeland security and public safety
equipment. The company is an authorized distributor of Cardiac Science Powerheart AEDs. By
purchasing AEDs through this contract, cities get:
• A competitively solicited contract that fulfills bidding requirements without going to an
RFP;
• Best in class expertise from Cardiac Science sales consultants to help you choose the
right AED for your needs;
• Best pricing as a result of the combined purchasing power of more than 30,000 state and
local agencies nationwide that are using U.S. Communities contracts;
• No user fees; and
• Ongoing customer support from Hagemeyer representatives to answer your questions
and address your needs after the sale.
Who Qualifies for U.S. Communities Pricing?
• Any city, county or state
• Public or private schools K-12, college or university
• Special districts
• Non-profit organizations
Information about U.S. Communities
U.S. Communities is a nationwide nonprofit local government purchasing alliance co-sponsored
by the League. It combines the purchasing power of over 30,000 state and local agencies in all
50 states.
Please visit U.S. Communities online at www.uscommunities.org to register. Contact Connie
Kuranko, U.S. Communities program manager, at (800) 635-3393 ext. 210 for questions about
the alliance.
7
For more information about the Hagemeyer contract, call (888) 745-6486 or e-mail
uscommunities@hagemeyerna.com.
_____________________________________________________________________________
Save the Date: League Events Scheduled for NLC 2008 Congressional City
Conference, March 10-12
The League of California Cities is organizing a number of important events during the National
League of Cities Congressional City Conference, March 10-12, in Washington, D.C. Meetings
are being scheduled with members of the California Congressional delegation, California
senators and Administration officials.
Please mark your calendars for the following activities. Additional details will follow as the
conference gets closer.
Monday, March 10
• League Reception at Washington Hilton (time TBD)
Tuesday, March 11
• Meeting with California Senator Barbara Boxer (time and location TBD)
• 5:30-7 p.m.-Capitol Hill Reception for California City Officials and California Congressional
Delegation (location TBD)
Wednesday, March 12
• 10-11a.m. -Roundtable Discussion with California Congressional Delegation Members
(location TBD)
_____________________________________________________________________________
Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
Visit (and bookmark!) the League’s Legislative Resources Web page
(www.cacities.org/legresources). You’ll find a roster and contact information for the League’s
legislative staff; the online Bill Search program, background materials on lobbying your
legislators, and more.
_____________________________________________________________________________
IN THIS ISSUE: Jan. 18, 2008
Issue #3-2008
Page 3: Health Care Legislation Will Have No Fiscal Impact on Cities
Highway Users Tax Primer Available
Page 4: Federal Update: 110th Congress Begins Second Session
Page 6: State Controller Issues Advisory Letter on Property Tax Administrative Charges
Sustainable Cities Feature Launches
Page 7: Sustainable Cities Feature: Palo Alto National Leader in Clean Energy Use
Register Now for Green California Summit and Exposition
Page 8: Registration Deadline Jan. 31 for Census Formula Information
California Sex Offender Management Board Holds Public Hearings
Page 9: Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff
LEAGUE HONORS NINE MEMBERS OF THE CALIFORNIA STATE LEGISLATURE
Hundreds of city officials turned out to honor the nine
legislators the League recognized for their support of local
government in 2007 at a reception Wednesday, Jan. 16. The
event was held at the Sutter Club in Sacramento following the
first day of the 2008 New Mayors and Council Academy.
For more, see Page 2.
•••• ••• ••• •• •••• ••• ••• •• •••• ••• ••• ••
TEMPLATE FOR PROP. 1B LOCAL STREET AND ROAD FUNDS NOW AVAILABLE
The California Department of Finance (DOF) released the instructions and forms for accessing
Proposition 1B local street and road funds this week. For more, see Page 2.
•••• ••• ••• •• •••• ••• ••• •• •••• ••• ••• ••
ANTI-RENT CONTROL MEASURE QUALIFIES FOR JUNE 2008 BALLOT
On Wednesday, Jan. 16, the Secretary of State’s office announced that the so-called California
Property Owners and Farmland Protection Act qualified for the June ballot. For more, see Page 2.
(From left to right) Front row: Sen. Dave Cox, Sen.
Bob Dutton, Asm. Anna Caballero, Sen. Mike
Machado and League of California Cities
President Jim Madaffer. Back row: Asm.
Cameron Smyth, Asm. Jarred Huffman, Sen. Joe
Simitian. (League Photo/Yvonne Hunter)
2
‘Legislator Recognition Reception’ Continued from Page 1…
Along with Assembly Member Anna Caballero (D-Salinas), the League’s “2007 Legislator of the
Year,” eight other legislators were honored including Senator Dave Cox (R-Fair Oaks), Senator
Bob Dutton (R-Inland Empire), Assembly Member Jarred Huffman (D-San Rafael), Senator Mike
Machado (D-Linden), Senator Joe Simitian (D-Palo Alto) and Assembly Member Cameron Smyth
(R-Santa Clarita).
The nine legislators were also featured in the January issue of Western City magazine, which can
be accessed at www.westerncity.com.
In addition to the legislators who were honored, many other assembly members and senators
joined city officials to discuss local issues and recognize their colleagues including, Assembly
Member John Laird (D-Santa Cruz), Assembly Member John Benoit (R-Palm Desert), Senator Tom
Torlakson (D-Antioch), Attorney General Jerry Brown, Housing and Community Development
Director Lynn Jacobs and Secretary for Resources Mike Christman.
_____________________________________________________________________________
‘Prop. 1B Template’ Continued from Page 1…
Cities should have received application instructions electronically. Materials from DOF include a
letter explaining how to apply for the funds as well as a list which includes each city’s proportional
share of the funds. Links to these documents as well as the Prop. 1B implementation guidelines
are below.
Resources
The League has provided the DOF letter, the city-by-city list of funds, and Prop. 1B implementation
guidelines online at www.cacities.org/infrastructure.
_____________________________________________________________________________
‘Anti-Rent Control Measure Qualifies’ Continued from Page 1…
This sinister measure, also known as the “Hidden Agendas Scheme,” will eliminate rent control,
eviscerate local land use planning, gut environmental protections and undermine public water
projects needed to ensure the state an adequate supply of clean drinking water. Funding for the
deeply-flawed Hidden Agendas Scheme comes from wealthy apartment owners and mobile home
park owners.
Homeowners Protection Act Measure Expected to Qualify Soon
Eminent Domain Reform Now, the coalition working to support responsible eminent domain reform,
expects the Homeowners Protection Act will qualify for the June 2008 California statewide ballot
as soon as today or within the next few days.
If passed by voters, the Homeowners Protection Act would provide solid protections for
homeowners by prohibiting governments from taking an owner-occupied home to transfer to a
private party. The measure is a direct response to the U.S. Supreme Court’s infamous Kelo v. City
of New London decision of 2005.
The broad coalition supporting the Homeowners Protection Act includes seniors, homeowners,
business, labor, environmentalists, affordable housing advocates, public safety leaders and local
government.
For more information on these initiatives and the campaign, visit
www.eminentdomainreformnow.com.
_____________________________________________________________________________
3
Health Care Legislation Will Have No Fiscal Impact on Cities
Analysis by League staff has determined that cities would not have to address the funding issues
contained in ABX1 1 (Nuñéz and Perata), the California Health Care Security Cost Act. Passed by
the Assembly on Dec. 17, the legislation is designed to provide coverage for most uninsured
Californians. Gov. Arnold Schwarzenegger supports the bill.
ABX1 1 has many moving parts, but the mandated employer contribution is one of the most
significant portions of the bill impacting employers. The bill calls for employers to contribute/pay a
health care fee equal to 1-to-6.5 percent of annual Social Security wages in the prior calendar year
depending on size of the entities’ payroll. The fee portion of the proposal is scheduled to be on the
November 2008 ballot.
Because cities are self-insured and meet the existing contribution levels for the bill, cities will not
have to address the funding issue involved with the California Health Care Security Cost Act.
Counties however have a different situation. Counties serve as “providers of last resort” for the
uninsured. The proposed legislation calls for the state to institute coverage for the uninsured. The
authors contend that this will provide savings for counties because they will no longer be
responsible for this function. County officials however believe that there is too much discretion to
determine the actual amount of county savings if ABX1 1 passes.
Democrats say that the $14 billion plan will pay for itself via proposed fees and taxes on employers,
workers and the tobacco industry. Republicans expect the proposal to meet its demise at the ballot
box due to the anticipated fee and tax hikes.
Funding from the proposal will come from the following sources:
• Employer fee in lieu of providing coverage: $1.6 billion
• Employers who provide coverage through the pool: $900 million
• Hospital tax: $2.3 billion
• Federal funds: $4.7 million
• Tobacco tax: $1.6 billion
• Individual premiums to pool: $2.1 billion
The bill has moved on to the Senate Health Care Committee where it is scheduled to be heard Jan.
23. The League will continue to monitor the legislation and will provide updates through Priority
Focus and the League’s Web site at www.cacities.org.
_____________________________________________________________________________
Highway Users Tax Primer Available
Gov. Arnold Schwarzenegger has proposed a series of cash management solutions to address
projected state general fund revenue shortfall for FY 2007-08 including “a one to five month delay
in gas tax disbursements for local streets and roads, increasing borrowable resources.”
This proposal would delay approximately $500 million of Highway Users Tax payments to cities
and counties, in the amount of about $100 million per month starting in April. These taxes, also
known as the "Motor Vehicle Fuel Taxes" or "Gasoline Excise Taxes," would be paid in full to cities
and counties without interest in September 2008.
League Fiscal Policy Advisor Michael Coleman has prepared a detailed explanation of city
Highway Users Tax revenue allocations with city-by-city estimates of the amount of revenue that
would be delayed. The primer can be accessed at www.californiacityfinance.com
(http://www.californiacityfinance.com/HUT080110.pdf)
The League is continuing to gather information on the Governor’s proposal and potential impact to
cities and is conducting a close review of the size and scope of the state’s cash flow challenges
and other possible solutions to address the deficit.
4
_____________________________________________________________________________
Federal Update: 110th Congress Begins Second Session
The U.S. Senate and House of Representatives reconvened this week for the second session of
the 110th Congress with an agenda dominated by the economy.
Leaders from both houses hope to collaborate with the Administration to develop a bipartisan
economic stimulus package. This issue along with health care, energy and the environment are
expected to be top issues in Congress as well as at the forefront of the presidential campaign in the
coming year.
Below is an update on federal budget issues followed by a recap on housing, public safety, water,
eminent domain and internet legislation the League has been tracking in both houses of Congress.
Appropriations for FY 2008 and 2009
The extended appropriations negotiations late last year between Congress and the Administration
for the fiscal year that started Oct. 1 produced mixed results for local government. The final multi-
bill appropriations package, P.L. 110-161, included $578.233 million for the Community Oriented
Policing Services (COPS) program. This is $45.233 million more than what was appropriated in FY
2007, but $120 million less than the House and Senate proposed for the program for this year.
The omnibus spending bill signed by President Bush in December also included $3.6 billion for the
Community Development Block Grant (CDBG) program, which is $100 million less than last year
and $600 million more than the President proposed this year.
The FY 2008 budget negotiations were lengthy because of disagreements between Congress and
the Administration on appropriate spending levels for domestic programs. Initially, Congress
proposed to spend 2.5 percent more than the Administration on domestic programs and the
President vowed to veto any spending legislation that exceeded his proposed budget. When
Congress ultimately agreed to the President’s total FY spending level of $933 billion, they chose to
steer funding into programs which they determined had the greatest need.
The release of President Bush’s proposed FY 2009 budget on Feb. 4 is just the beginning of the
federal budget negotiation process, which similar to FY 2008, will be difficult and fraught with
partisan differences. After the President’s proposal is released, Congress will begin reviewing the
budget and setting its own spending priorities for the upcoming fiscal year. It is extremely likely
that Congress’ budget agenda may not align with the White House’s due to partisan divisions.
The League will continue to monitor federal budget issues as they relate to local government in the
coming months. Updates will be issued through Priority Focus and the Web site at
www.cacities.org.
2007 Legislative Recap
Congress will return to work this year on several pieces of key legislation being closely tracked by
the League. This legislation includes:
The Energy Independence and Security Act of 2007
In December, the President signed this legislation (P.L. 110-140) into law, which includes a
provision to authorize the Energy Efficiency and Conservation Block Grant program at $2 billion
annually through FY 2012. The program would provide grants to states and local governments to
help reduce fossil fuel emissions, reduce energy usage, and improve energy efficiency in
transportation, building, and other appropriate sectors.
Appropriated funds would be split into two primary portions, with 68 percent of funds allocated to
local governments and 28 percent of funds allocated to states, including DC, Puerto Rico, and
territories and possessions. The remaining 4 percent would be split between Indian tribes and
5
special grants. This year, the House and Senate will determine the program’s FY 2009 funding
level. The Department of Energy is expected to organize guidelines.
The Affordable Housing Trust Fund
The House passed the National Affordable Housing Trust Fund Act (HR 2985, HR 1852, HR 1427)
last October. Together, these three bills would provide more than $1 billion in new resources
annually for the production, preservation, and rehabilitation of 1.5 million affordable homes over 10
years.
Cities and towns would receive 60 percent of the funds with the remaining 40 percent going to
states. These funds could be used for construction, rehabilitation, acquisition, and preservation of
affordable housing. The Senate will consider its version of the legislation (S. 2523) this year.
Federal Foreclosure Legislation
The Mortgage Reform and Anti-Predatory Lending Act of 2007 (HR 3915), passed by the House
last November, would aid subprime loan holders with repayment and refinancing. The Senate
passed similar legislation (S 2338) in December.
The House and the Senate must now reconcile differences between the two measures and secure
White House approval before it can be signed into law. No timeline has been established for
accomplishing this and additional legislative efforts on this issue will likely emerge this session.
Gang Abatement and Prevention Act of 2007
Sen. Diane Feinstein’s Gang Abatement and Prevention Act of 2007 (S 456) was approved by the
Senate in September. The House version of the measure (HR 3547) is scheduled to receive
committee-level consideration early this session, though no date for committee review of the
measure has been set yet.
The bills would create High Intensity Interstate Gang Activity Areas (HIIGAA) and provide Federal
assistance to local governments to combat, investigate and prosecute criminal street gangs.
The COPS Improvements Act of 2007
The COPS Improvement Act of 2007(HR 1700) passed the House in May. The legislation would
authorize $1.15 million annually through FY 2014 for COPS. The Senate version of the measure
(S 368) was approved by the Senate Judiciary Committee in May as well, and is awaiting final
action on the Senate floor. No date has been scheduled for consideration of the measure.
The Public Safety Employer-Employee Cooperation Act of 2007
The House passed its version of this legislation (HR 980) in July, while the Senate attempted to
attach its version (S 2123) of the measure to the Food and Energy Security Act of 2007 in
December. Although this failed, this legislation should gain momentum this session.
In addition to imposing Federal collective bargaining requirements on states and local governments
that do not currently permit collective bargaining, this legislation may impose the federal
requirements on those states that already permit collective bargaining.
The Clean Water Restoration Act of 2007
The House and Senate will continue hearings on their versions of the Clean Water Restoration Act
of 2007 (HR 2421 and S 1870 respectively) in 2008. The measures would amend the Clean Water
Act to replace the term "navigable waters" throughout the Act with the term "waters of the United
States." This term would be defined to mean all waters subject to the ebb and flow of the tide, the
territorial seas, and all interstate and intrastate waters and their tributaries to the fullest extent that
the waters, or activities affecting them, are subject to the legislative power of Congress under the
Constitution.
6
Federal Eminent Domain Legislation
Last December, an amendment to the Senate’s Food and Energy Security Act of 2007 was
defeated that would have preempted state and local land use laws by prohibiting any state or local
government from exercising eminent domain authority over any "farmland or grazing land for the
purpose of a park, recreation, open space, conservation, preservation view, scenic vista or similar
purpose.”
While little action is expected on eminent domain this session, three measures have been
introduced on the issue: the Private Property Rights Protection Act of 2007 (HR 3053/S 48) and
the Strengthening the Ownership of Private Property Act of 2007 (HR 926).
The Internet Tax Freedom Amendments Act of 2007
The President signed the Internet Tax Freedom Amendments Act of 2007 (P.L. 110-108) in
October, which extended the moratorium on internet access taxes that expired in November of
2007 until 2014. The legislation also amended the definition of Internet access to make clear that
the moratorium applies only to the service that connect a user to the Internet and not to goods and
services sold over the Internet. No additional legislation is expected on this issue this session.
_____________________________________________________________________________
State Controller Issues Advisory Letter on Property Tax Administrative Charges
The audit division of the State Controllers Office issued a letter Jan. 7 clarifying its recent legal
opinion on the appropriate method for calculating property tax administrative charges related to the
triple flip and property tax in lieu of Vehicle License Fees (VLF).
In recent months, numerous city officials have voiced concerns about a significant increase in
property tax administrative charges related to the administration of the triple flip and property tax in
lieu of VLF. The triple flip is the mechanism by which the state reimburses cities and counties with
property tax for local sales tax taken to pay off the Economic Recovery Bonds under Proposition 57
(2004). Property tax in lieu of VLF is the additional property tax revenue cities and counties
receive since the VLF for Property Tax Swap of 2004.
These concerns raised an issue requiring legal interpretation. Under the law, beginning in FY
2006-07, a county may impose a fee for administrative costs of implementing the triple flip and
property tax in lieu of VLF, but the fee, charge, or other levy may not exceed the actual cost of
providing these services. County auditors had been redistributing the total costs of property tax
administration in proportion to the distributions of triple flip and property tax in lieu of VLF, resulting
in substantially larger additional charges than actual cost.
Interested cities should visit http://www.californiacityfinance.com/#PROPTAXADMINFEES
to review the letter from the audit division of the State Controllers Office.
_____________________________________________________________________________
Sustainable Cities Feature Launches
This week Priority Focus runs the first sustainable cities feature with a profile of Palo Alto Green,
the city’s program that enables residents to purchase renewable energy. The sustainable cities
series highlights innovative practices California cities are using to promote sustainability.
We are now collecting stories for this new series and want to hear about what your city is doing to
be more sustainable. Has your city recently converted its vehicle fleet, installed solar on city buses
or perhaps developed a public awareness campaign to encourage city residents to conduct an
energy audit at home? These are the kinds of stories we want to hear.
Questions and submissions should be sent to League Communications Director Eva Spiegel at
espiegel@cacities.org.
7
_____________________________________________________________________________
Sustainable Cities Feature: Palo Alto National Leader in Clean Energy Use
Palo Alto has become one of the nation’s top clean energy providers by offering its residents the
opportunity to purchase renewable energy. The city is doing this through Palo Alto Green, a
program through which residents voluntarily pay an extra 1.5 cents per kilowatt-hour on their utility
bill to fund the purchase of clean energy. It’s considered a voluntary utility tax, and on average,
participating customers are charged approximately $10 each month.
Launched in 2003, Palo Alto Green now has 22 percent of the city’s residents participating, making
it a national leader. The average participation rate for other American cities with similar programs
is just 1.8 percent.
The purchased renewable energy comes from a combination of 97.5 percent wind and 2.5 percent
solar generators from facilities located throughout California including Solano County, Davis, San
Ramon and Pleasanton.
Annually, Palo Alto’s municipal utility department purchases about 41.5 megawatt-hours of energy
with 13 percent coming from renewable energy. This program prevents about 700 million pounds
of CO2 from being released each year.
Palo Alto is unusual among cities in that it provides all utilities for its residents, not just water and
refuse collection. Palo Alto Green is possible because the city is able to contract for green power.
Assistant City Manager Emily Harrison remarked on why Palo Alto is so committed to addressing
climate issues. “Our council adopted a sustainability policy in 1997 and since we’ve implemented a
broad array of programs including Green Palo Alto. Just last month we adopted a climate
protection plan to achieve carbon neutrality by 2050. This will mean massive changes to city
operations as well as significant changes from every sector of the community.”
Palo Alto is getting national attention for its sustainable focus. In 2006, the Environmental
Protection Agency recognized the city a Green Energy Community because of the innovative
program. The California Climate Action Registry has also designated Palo Alto a Climate Action
Leader.
To learn more about Palo Alto Green please visit www.city.palo-alto.ca.us/ and search the term
“Green Palo Alto.”
_____________________________________________________________________________
Register Now for Green California Summit and Exposition
The Green California Summit and Exposition is scheduled April 7-9, at the Sacramento Convention
Center. This event was created to support efforts by local and state government to implement
effective and innovative green services, products and solutions.
Session topics include:
• Climate change
• Energy innovation
• Green building
• Environmentally preferable purchasing
• Waste management
• Transportation
• Water management
• Developing an organizational “green culture”
• Planning and development
• Funding
8
Registration
Register online at www.green-technology.org.
Early bird registration ends March 1 for a discounted entry fee. Registration will be open until the
conference starts at full price. Special group rates for the education program are available for
groups of four or more. The keynote speeches and expo floor are free, but you must register to
attend.
For questions, please contact Cindy Dangberg at (916) 838-3339.
____________________________________________________________________________
Registration Deadline Jan. 31 for Census Formula Information
Although the 2010 Census is still three years away, the U.S. Census Bureau needs local
governments to provide updated addresses and population information for their communities by
Jan. 31.
All state, local and tribal governments should have already received informational booklets from the
Census Bureau about the Local Update of Census Addresses (LUCA) program.
This joint and voluntary program between the Census Bureau and local governments is the official
start of the 2010 Census. The Bureau projects that by 2010, there will be more than 310 million
people living in the 50 states, Washington, D.C. and Puerto Rico.
In partnership with the Census Bureau, local governments will use their area knowledge to improve
the list of addresses for housing units and group quarters, including growth from new construction
or annexation.
After registering for LUCA, participating governments will receive review materials to improve the
address list.
The information contained in the address list is confidential by law, and those governments that
choose to participate in the LUCA program will be provided an option to review the Census
Bureau’s address list. Like all census employees, those who review and update a confidential
address list are subject to a jail term, a fine or both if they disclose any protected information.
After LUCA, but prior to the 2010 Census questionnaire delivery, address listers will perform a field
canvass across the country to make sure the latest address list is correct. Using global positioning
system (GPS) mapping on hand-held computers, workers will be able to update information
electronically while out in the field.
For more information, visit the 2010 Census LUCA Program at
www.census.gov/geo/www/luca2010/luca.html, or call the Census Bureau Geography Division at
(866) 511-5822.
_____________________________________________________________________________
California Sex Offender Management Board Holds Public Hearings
The California Sex Offender Management Board (CASOMB) held public hearings in San Francisco,
Bakersfield and San Bernardino the week of Jan. 7 to provide local government, law enforcement
agencies, victim advocates, and community members the opportunity to ask questions and express
concerns about sex offender management policies under review by board members.
Charged with conducting an assessment of current management practices for adult sex offenders
residing in California communities, CASOMB is expected to report to the Governor and Legislature
early this year. Information gathered at the public hearings last week will be used in this report.
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Background
CASOMB was created in 2006 when Governor Schwarzenegger signed Assembly Bill (AB) 1015
(Chu and Spitzer). The board held its first meeting last June and has continued to meet monthly to
address this issue. The meetings focus on all aspects of the systems that manage the population
of registered sex offenders in California, with particular attention given to those sex offenders living
in the community under the direct supervision of the criminal justice system.
The California Department of Corrections and Rehabilitation
(http://www.cdcr.ca.gov/News/PublicNotices.html) has more information online about CASOMB
and scheduled meetings. Go to www.cdcr.ca.gov/ and search the term “California Sex Offender
Management Board.”
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