HomeMy WebLinkAboutResolution 2003-41 - Establishing Voluntary Payroll Deductio 93s
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Council/Agency Meeting Held:
Deferred/Continued to:
Approved ❑ Conditionally Approved ❑ Denied City Clerk's Sign are`-
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Council Meeting Date: June 16, 2003 Department ID Number: c 03-014
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTIONc'-
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SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: RAY SILVER, CITY ADMINISTRATOR Q,&l
PREPARED BY: WILLIAM P. WORKMAN, ASSISTANT CITY ADMINISTRATOR
SUBJECT: ADOPT RESOLUTION ESTABLISHING VOLUNTARY PAYROLL
DEDUCTION PROGRAM FOR NON-ASSOCIATED EMPLOYEES
AND CITY COUNCIL MEMBERS 0( S, All, )a,03-341
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: Should the City adopt a resolution establishing a Voluntary Payroll
Deduction Program authorizing the non-associated employees and City Council Members to
remit a portion of their salary to charitable, educational, governmental or other non-profit
mutual benefit corporations such as the Action for Better Cities organization.
Funding Source: City funds are not involved only voluntary employee payroll deductions.
Recommended Action: Adopt Resolution No. a003'�4/, a resolution of the City Council of
Huntington Beach establishing a Voluntary Payroll Deduction Program for Non-Associated
Employees and City Council Members.
Alternative Action(s): Do not adopt the resolution for the Voluntary Payroll Deduction
Program.
Analysis: Proposed for the City Council's consideration is a Voluntary Payroll Deduction
Program for Non-Associated employees and City Council Members. This program would
allow an eligible employee or Council Member to remit a portion of their salary to charitable,
educational, governmental and other non-profit mutual benefit corporations. The
Administrative Services Department would manage the program as part of their payroll
administration function.
Approval of the Voluntary Payroll Deduction Program would permit eligible employees and
Council Members to participate in the statewide "Save Our Services" campaign organized by
,,,,,,Action for Better Cities. Created by the League of California Cities, Action for Better Cities is
a 501 C 4 organization formed to lead the efforts to protect and stabilize city finances
through political activities. The "Save Our Services Fund" was created to pay the typical
costs of campaigning for and against measures that affect city services and revenues.
r�� I
REWEST FOR COUNCIL ACTIOV
MEETING DATE: June 16, 2003 DEPARTMENT ID NUMBER: 03-014
Attached is information about the "Save Our Services" Fund and Action for Better Cities
organization.
A represented employee is not eligible to participate in the Voluntary Payroll Deduction
Program unless their employee association approves of the program through the meet and
confer process with the city.
Environmental Status: Not applicable.
Attachment(s):
City Clerk's
Page Number . Description
1. A Resolution of the City Council of the City of Huntington Beach
establishing a voluntary payroll deduction program
2. Action For Better Cities
RCA Author: Workman
G:\Denise\Workman\RCA-Adopt Reso Est Non-Assoc Payroll Deduction.doc-2- 6/5/2003 2:17 PM
ATTACHMENT # 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH ESTABLISHING A
VOLUNTARY PAYROLL DEDUCTION PROGRAM
WHEREAS, as a general rule, city leaders are in a better position than State government
to make decisions governing local affairs, educate the citizenry as to the benefits of strong local
government, and advocate on behalf of cities; and
Measures enacted through the legislative process, as well as by Statewide ballot
initiatives, over the past 20 years have produced the unintended consequences of destabilizing
City finances and have weakened the ability of City residents to govern local affairs through
their elected community representatives; and
The State of California is currently using over $800 million each year in City property tax
funds to balance the State budget; and
The California Legislative Analyst's Office has projected that the State is facing a
structural budget deficit of over$10 billion per year over the next five (5) years, and City
services and revenues are at risk of further State raids; and
The League of California Cities is currently conducting research on`vanous ways to
secure constitutional protection of City services and revenues and may sponsor a Statewide
ballot measure of this purpose in 2004 or thereafter; and
Action for Better Cities was created by the Board of Directors of the League of California
Cities to advocate voter approval of constitutional protection of City services and revenues and
opposition to ballot proposals that reduce local democratic control of local services and
revenues: and
Action for Better Cities has established the "Save Our Services" (SOS) Fund to finance
the cost of any Statev%ide ballot measure campaign to preserve and protect City services and
revenues; and
Elected and appointed officials and non-associated employees have the opportunity to
provide leadership in Action for Better Cities through voluntary financial contributions to the
SOS Fund; and
The expenditure of monies in the SOS Fund by Action for Better Cities shall be limited
and dedicated to ballot measure campaigns that are designed to specifically strengthen the
services and revenues of city governments; and
The City Council wishes to establish a voluntary payroll deduction program that allows
elected officials and non-associated employees to contribute to the non-profit corporation of their
choice,
03reso/sos fund/6/2/03 I
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington
Beach as follows:
I. There is hereby established the Voluntary Payroll Deduction Program of the City
of Huntington Beach ('. Program").
2. Any non-associated employee or member of the City Council of the City of
Huntington Beach is eligible immediately to participate in the Program.
3. The purpose of the Program is to allow a non-associated employee or a member
of the City Council to direct the City of Huntington Beach to remit a portion of their salary
payable pursuant to City ordinance or resolution to charitable, educational, governmental, or
other purposes for which non-profit mutual benefit corporations are organized.
4. Participation in the Program is completely voluntary.
5. The City Administrator is directed to do all things necessary and proper to
implement the Program established by this Resolution including, but not limited to, preparing
appropriate forms to be completed by participating non-associated employees and City Council
members, informing City Council members of the full range of charitable, educational,
governmental, or other purposes for which non-profit mutual benefit corporations are organized,
and carrying out the direction of the participating non-associated employees or City Council
members by.remitting a portion of their:salary as stated in the appropriate forms.
6 In establishing this Program, the City Council specifically wishes to make its
support known for a voluntary payroll deduction to protect City- services and revenues through
contributions to the SOS Fund, administered on behalf of the League of California Cities by
Action for Better Cities.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the day of dun& , 2003.
&xt�' /M"
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk (�'���3 Cit Attorne
REVIEWED, INITIATED AND APPROVED:
City Ad inistrator
03reso/sos fund/6/2/03 2
STATE OF CALIFORNIA
COUNTY OF ORANGE ) SS:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk
of the City of Huntington Beach, and ex-officio Clerk of the City Council of
said City, do hereby certify that the whole number of members of the City
Council of the City of Huntington Beach is seven; that the foregoing resolution
was passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at an regular meeting thereof held on the
16t' day of June, 2003 by the following vote:
AYES: Sullivan, Green, Boardman, Cook, Houchen; Hardy
NOES: None
ABSENT: Coerper
ABSTAIN: None
L.djY12(.e�
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California
ATTACHMENT #2
Who We Are Page 1 of 2
F e, N IR AP
Boars of Directors
Ronald Bates, Chair Kathy Millison, Secretary
Mayor, Los Alamitos City Manager, Clovis
Pat Eklund, Vice Chair Bev Perry, Treasurer
Mayor Pro Tem, Novato Mayor, Brea
IAndrew Fox Oscar Rios
Mayor, Thousand Oaks Past President, Latino Caucus, Watsonville
f
Larry Kirkley Janice Rutherford
Deputy City Administrator, Inglewood Council Member, Fontana
i
f
Ron Loveridge Tim Sbranti
Mayor, Riverside Council Member, Dublin
t
E Paul McNamara Richard Tefank
Council Member, Marysville Police Chief, Buena Park, retired
E
! Chief Executive Officer
Michael Madrid
Joint e ABC Board of Directors
Action for Better Cities is looking to expand its Board membership by recruiting city
leaders throughout California. ABC is hoping to better relay communications about initiative
and political activity that may be of benefit or harm to the cities in your area.
Interested City Council Members and Mayors that will be considered should:
be committed to finding a workable, positive solution to reforming the
state/local fiscal relationship.
be a dynamic energetic public speaker, willing to communicate the positive
http://www.bettercities.org/who_we_are.htm 6/2/2003
Who We Are Page 2 of 2
attributes of local government to your region in the state.
work well with other city officials, community opinion leaders and the media
in a high-paced campaign setting.
volunteer to commit 4-8 hours a month to committee and campaign work.
be held in high esteem among city colleagues.
agree to communicate with other city leaders to keep them informed on
campaign activities.
For more information on the application process, please contact Action for Better Cities.
Action for Better Cities • 1400 K Street, K307 • Sacramento, CA 95814
t: 916-658-8273 f: 916-658-8289 e: madridm@bettercities.org
http://www.bettercities.org/who_we_are.htm 6/2/2003
FAQs Page 1 of 2
Legal and Ethical Issues
FAQs
Action for Better Cities (ABC) is a non-profit corporation created by the League
of California Cities in 1998 to help California cities protect and strengthen
decision-making control and stabilize city finance.
ABC will inform important audiences about what local government means to
average citizens -- from police on the streets to grass in the parks, and from
necessities such as water and waste disposal to human services such as libraries
and museums -- and how the lack of local control paralyzes a city's ability to
provide needed services.
ABC will work to ensure that city officials have the resources they need to be
responsive, accountable and effective in serving their constituencies and that
cities' already limited resources are not diverted for other purposes.
ABC will help ensure that the Legislature is informed of financial challenges
facing local governments and will work to secure approval for proposed solutions
that constitutionally protect city revenues from other levels of government.
During the past 20 years, California's rapidly growing population has placed
increased demands on local governments, but state and federal support to cities
has plummeted. Cities now are facing increasing uncertainty about resources
and vulnerability to state-level budget cycles.
Since 1980, hundreds of millions of dollars have been diverted from city
governments. Examples of local revenues that the state has taken away and not
yet restored include:
liquor license fees,
financial aid to local governments,
cigarette tax,
s highway carrier's uniform business tax,
trailer coach/mobile home fees,
business inventory exemption reimbursements.
Billions of dollars in local property taxes currently are at stake without protection
of existing revenues and/or reform of the current system. (At stake for cities is $8.8
billion; for counties $3.9 billion; special districts $1 .3 billion.)
Every year, California cities have witnessed further erosion in city revenues and a
weakening of local control over community affairs. It is local control that allows
http://www.bettercities.org/fags.htm 6/2/2003
FAQs Page 2 of 2
citizens to shape the services they receive, the design of fhe community and the
safety of their neighborhoods. Without local control, city government and their
residents do not have the ability to tailor their communities to meet the unique
and diverse needs of those that live in them.
Recent trends indicate more people are migrating to urbanized areas.
Stable and reliable revenues and autonomy in local affairs are essential for
California cities. ABC is dedicated to protecting:
Reasonable tax and revenue options and limitations
Adequate revenues with rational connection to needs/uses
Control of all basic municipal services.
ABC is privately funded and uses no fax money.
While ABC can engage in political activities, it will not make candidate
contributions.
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Action for Better Cities • 1400 K Streei, #307 - Sacramento, CA 95814
t: 916-658-8273 • f: 916-658-8289 • e: madridm@bettercities.org
http://www.bettercities.org/faqs.htm 6/2/2003
SOS Fund Pfograrn Page 1 of 3
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FA Qs
Legal Opinions
Model Resolution
Sample Voluntary Payroll Deduction Form
Cities that have adopted the resolution
"Save Our Serxices" Fund
They Did It Before. Over the last 12 years the cities of California have witnessed
massive reductions in vital city services as the state government has taken over $6
billion in city property tax funds to pay the state's bills. This raid of local tax dollars by
the state is still going on. Today it costs city residents over $800 million a year.
They Can Do It Again. With the state facing its most brutal budget crisis in a decade
and state deficits forecast for the next few years, city services may again be
sacrificed to protect the state's budget and services. If that happens, families,
children, seniors and city employees will be the big losers.
How Cities Can Fight Back. We can fight back by lobbying at the grassroots level and
in Sacram'ento and by preparing to support or oppose measures on the 2004
statewide ballot and beyond. The only way we do that is to raise funds to help pay for
the cost of campaigning for and against measures that affect city services and
revenues. The League of California Cities created Action for Better Cities (ABC) to lead
this effort. ABC has established the separate "Save Our Services" (SOS) Fund to pay
the typical costs of these campaigns such as polling, signature gathering, brochures,
etc. City officials and employees are invited to contribute to the separate "SOS" Fund
by check or voluntary payroll deduction. These donations will only be used for League-
approved statewide ballot measure advocacy to protect city services and revenues.
If the League sponsors a ballot measure to constitutionally protect city revenues, the
"SOS" Fund will support a major part of the expenses of that campaign.
How Can You Get Involved?
Inform your city colleagues about the threat to city services and revenues and
about the important role of the "Save Our Services" (SOS) Fund in reducing the
http://www.bettercities.org/sos_fund_program.htm 6/2/2003
SOS Fund Program Page 2 of 3
threat.
Urge your city council to pass a resolution establishing a voluntary payroll
deduction program that allows elected officials and employees to contribute to
the non-profit corporation of their choice, including the SOS Fund (through ABC).
We strongly recommend that city officials informally or formally meet with all city
employee organizations prior to establishing such a program.
Personally contribute to the SOS Fund by payroll deduction or check and forward
contributions to:
The "Save Our Services (SOS) Fund
c/o Action for Better Cities
1400 K Street, Suite 307
Sacramento, CA 95814
It's as simple as that! Direct any questions about the SOS Fund directly to Mike Madrid
at Action for Better Cities at (916) 658-8272 or Chris McKenzie (916) 658-8275 or Dwight
Stenbakken (916) 658-8213 at the League of California Cities.
Protect City Services and Revenues NOW...
Cityjo s depend on it.
The State budget deficit is the worst on record.
In September, the Governor signed the FY 2002-03 state budget after wrangling with
an unprecedented $23.6 billion deficit. But no one believes this is the end of the state
budget woes. The Legislative Analyst is already predicting a FY 2003-04 deficit of at
least $21 billion.
Most funding for essential city services is vulnerable to take-away by the State.
Most city general fund revenues can be taken by the state legislature to balance its
budget. The state has the authority to cut or reallocate all of the top sources of city
general revenue. These are the vital revenues, which fund your essential city services:
police, fire, parks, libraries, planning, streets, and the essential support services that
support these programs.
The State has taken city money before.
Over the last 20 years, the state has acted numerous times to take city revenues in
order to balance its budget. During the recession years of the early 1980s it took
hundreds of millions of local vehicle license revenues. In the early 1990s, facing a multi-
billion dollar deficit, the state begin shifting away billions of local property tax revenue.
Now, it faces an even larger budget problem.
http://www.bettercities.org/sos_fund_program.htm 6/2/2003
SOS Fund Program Page 3 of 3
DON'T LET THEM DO IT AGAIN - SUPPORT THE S.O.S. FUND!
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Action for Better Cities - 1400 K Street, #307 - Sacramento, CA 95814
t: 916-658-8273 - f: 916-658-8289 - e: madridm@bettercities.org
http://www.bettercities.org/sos_ftind_program.htm 6/2/2003
FAQs Page 1 of 3
Wil
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Back to SOS Fund Program
"SOS Fund"
IFAQ s
What is the "Save Our Ser-vices" (SOS) fund?
The Save Our Services (SOS) fund is a collection of private contributions from city employees
and elected officials throughout California. Every pay period, hundreds of people will be
contributing to protect city fax dollars.
The goal of SOS is to protect local tax dollars by a constitutional amendment so that those
people who work in city government never have to worry about the state government raiding
city budgets. We believe the people of California value the work that cities and their workers
provide- by everyone in the state making a small regular contribution, we can make a big
difference.
What's at stake for city employees?
In a single word: jobs. The services and jobs that cities offer are in jeopardy whenever their
revenue streams are threatened. Just as if someone were to take away a certain amount of
your family's income-you would have no choice but to cut back on what your family's
budget would be. Cities are in precisely the some place. That means city employees and
services aren't safe, until city revenues are.
What's the urgency -Why now?
For a couple of reasons. First, this budget year promises to be one of the most difficult for
California in nearly a decade. During the last economic downturn, cities and local
governments took the brunt of financial cuts. That meant the loss of jobs, closing of services
and the reduction of staff- a situation we can't allow to happen again.
Second, cities have become more politically active as a result of Sacramento's last major
financial take-away and that has threatened some powerful special interests. In fact, those
interests tried to pass a law last year preventing city employees from protecting themselves in
just this way.
How is the fund related to Action for Better Cities?
Action for Better Cities, or ABC, is a non-profit corporation that was created by the League of
California Cities, to assist California cities to protect and stabilize city finance through political
activities. ABC's status as a 501 (c)4 corporation makes it legally possible to raise and spend
funds on issues specific to city matters.
http://www.bettercities.org/sos/faqs I.htm 6/2/2003
FAQs Page 2 of 3
The SOS fund will be administered by Action for Better Cities but accounted for and managed
separately from all other ABC funds. Money in the SOS fund will be in a separate account and
its accountability to contributors handled in a distinct fashion.
Who will control expenditures of these funds and how will that be determined?
When it established this fund, Action for Better Cities amended its by-laws and operating
policy to strictly limit how the funds in this account are used. Expenditures will be controlled by
the Board of ABC and only made for League-approved statewide ballot measure advocacy
to protect city services and revenues.
What activities can the fund be used for?
Funds can be for polling, campaign advertising and brochures, campaign staff, signature
gathering efforts and similar activities directly related to,a political campaign.
What activities can the fund NOT be used.for?
Money in the fund can only be used for an activity directly related to city revenue
preservation and protection. These funds CANNOT be used for activities related to
labor/management relations, tax sharing proposals, housing, transportation or any other issue
not related to protecting revenue sources. None of these funds will be used to pay for the day-
to-day operations of Action for Better Cities or political activity beyond the scope of
protecting city revenue sources.
If it's not about protecting city money- it won't be used.
Are contributions to the "SOS"fund.tax-deductible?
Contributions are not deductible for federal and state fax purposes. As a 501 (c)4 organization,
Action for Better Cities and the ''Save Our Services" fund raise and spend money on direct
advocacy for political purposes - as a result, contributions may not be deducted from your
taxes.
Who will know what my contribution is — or if t contribute at all?
Action for Better Cities is required by the state's campaign disclosure laws to report the name,
occupation, employer, and date of contributions) of anyone who contributes in excess of $99
in a single calendar year to the Save Our Services fund. Other than this required disclosure, the
contribution program is designed to be as anonymous as possible. All of our communications
are sent to all city management staff in California and asked to be distributed to the entire
employee base - that way, you know what work we're doing on behalf of cities, even if you
aren't able to contribute at this time.
Of course, the staff handling payroll duties at your city will have to be made aware of your
intent to voluntarily contribute to the fund. However, existing law allows the city to keep payroll
contributions of any sort confidential.
1AThat accountability measures will be instituted so those contributors will know
where their money is going?
There will be a quarterly newsletter distributed to all city employees and interested parties
about what Action for Better Cities is engaged in and what the SOS fund is spending money
on.
Once a statewide campaign is conducted — what will become of the fund?
http://www.bettercities.org/sos/faqsl.htm 6/2/2003
FAQs Page 3 of 3
Our hope is that the success of this effort will help city employees see how strong they are
when united for a common purpose. While there are no specific plans as of yet -we envision
an on-going operation that will protect cities, their employees and the services they perform
indefinitely.
Is there a minimum contribution required to help out?
There is no minimum required to contribute, and as a voluntary plan, you may begin
contributing and terminate your participation at any time. You may also change the amount
you contribute at any time as well.
Currently, we have employees contributing anywhere from $2.50 to $25.00 per pay period. The
average contribution is roughly $5.00 per employee. Imagine the power of city employees if
everyone in California were contributing just $5.00 per pay period to the "Save Our Services"
fund. Awesome!
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Action for Better Cities � 1400 K Street, #307 • Sacramento, CA 95814
t: 916-658-8273 • f: 916-658-8289 - e: madridm@bettercities.org
http://www.b.ettercities.org/sos/fags 1.htm 6/2/2003