County Association Membership Deleted From Lake Forest Budget

In a budget that tops $30 million, $16,000 may sound like a paltry amount.

Nevertheless, that much money—the cost of annual dues for the Association of California Cities-Orange County—caused much furor in the Lake Forest City Council meeting Tuesday night when Councilwoman Marcia Rudolph proposed to pull it from the 2011-12 budget.

"I know it might sound draconian to drop out of the [ACC-OC], but I do not see it as beneficial," Rudolph said.

The last thing the city should do is align itself with the new organization, rather than with the more established city advocacy group League of California Cities, she said.

"Obviously, I have some serious questions as to the viability and to the influence" of the Orange County association, she said, singling out the league as a more viable partner in fighting the state for redevelopment funds.

"I have a real problem with us going with the [ACC-OC] right now,” she said. "At this time it’s a waste of our citizens' money that could be better spent elsewhere."

She was backed by Councilwoman Kathryn McCullough, who said she would rather keep the money in the general fund, unallocated, to “backfill” any projects that the city may undertake without sufficient funding.

The state's unstable budget situation means that Lake Forest should be prepared for the worst, she said.

Lake Forest Mayor Pete Herzog came out in strong opposition to the elimination of the money.

The ACC-OC and League of California Cities fulfill very different roles, he said.

Furthermore, "staying in the [ACC-OC] does not increase our budget," Herzog said.

That's because its dues are intentionally matched with what members of the Orange County Division of the League of California Cities paid the previous year.

Herzog serves on the ACC-OC board of directors as the Legislative Committee chair.

Councilman Mark Tettemer aligned himself with Herzog; while Councilman Scott Voigts tried to plot a route of compromise.

Voigts suggested that the city pull the money out of the 2011-12 budget as Rudolph and McCullough had requested but add it back in later if funds are still available, as is expected.

That is within the council's ability, said City Manager Robert Dunek, though later in the meeting he added that it would be more complicated to do so than to simply take it out at a later date if deemed necessary.

The state's propensity for dipping into local coffers to prop up its budget means that Lake Forest's balanced financial future could change without warning, McCullough said.

However, Herzog said membership in the ACC-OC is "something [Lake Forest] should budget for and plan ahead for,” chiding Voigts for his suggestion that the city could return the $16,000 to the budget once it comes time to pay dues again.

Keeping the money in the general fund is a matter of fiscal prudence for Lake Forest, insisted McCullough.

“I want that money flexible enough where we can make the decision,” she said.

But Herzog said the city's budget is already flexible, due to millions of dollars in multiple reserves and other funds.

Lake Forest is “in a position that is different and apart from other cities” because of its balanced budget, he said.

A motion to pass the budget without removing the $16,000 failed, with only Herzog and Tettemer in favor.

Tettemer asked if the ACC-OC membership funds issue could be pulled from the overall budget vote so he would not be voting against the entire 2011-12 budget.

With that, the rest of the city's budget passed unanimously; in rapid succession, a motion to remove the ACC-OC dues from the budget passed 3-2, with McCullough, Rudolph and Voigts in favor.

Since the ACC-OC operates on a calendar, rather than fiscal, year, the city's membership is paid for through the end of 2011.

If the issue is not revisited before 2012, Lake Forest's membership could expire.