Good point. Still, the city budget is in some sense tied to the market. The unemployment rate almost halved since 2010. Per capita income almost doubled since 2000. Apple revenues alone tripled in the last five years. You'd expect the local municipalities to cash in on the taxes.
Cities can't impose local income taxes as it is politically difficult.. Prop 13 means they can't get money from increases in rents, and they don't want to build more anyway. As a result cities don't see the gains from booms in the way they would in other regions of the country.
