This report expands upon a policy resolution passed unanimously at the 53rd Annual Conference of Mayors in 1985. The first part of the report, a policy statement, points out the magnitude of the adult illiteracy problem and of some of the issues involved, and briefly indicates how various segments of society can contribute to a solution. The second part suggests guidelines for developing literacy initiatives in cities. It is designed to serve as a resource guide and is nonprescriptive. Topics covered include mayoral role, public awareness, coordination of citywide efforts, service delivery, literacy program components, resources, national organizations, and research organizations. Suggestions and examples are provided as necessary. (YLB)