The Legislature has almost total control over municipal finance policy. It has set the value and tax rates on property, offered exemptions for various classifications, limited mill levies and imposed other restrictions. Balancing a city budget under these conditions requires a sharp pencil, tough choices and a little bit of magic. Cities and towns are operating on subsistence budgets. They need supplemental funding and cannot accept further reductions in property tax revenues or assume costs mandated by the state. It is time for the Legislature to finally understand that cities and towns have done more with less for too long.
Be it resolved that the League will support bills to:
1. revise the Public Defender Law to require that the growth factor for the Entitlement Program be applied before assessments are subtracted
2. clarify the law on the phase-in of property values after each reappraisal cycle and its application to new construction
3. reimburse local governments for the loss of revenue that occurred when the tax exemption on business equipment was increased to $20,000
4. allow cities and towns to sell bonds through local banks
5. make it possible for local governments to attach insurance claim payments to cover the cost of demolishing structures that have been destroyed by fire or other causes
6. prohibit state agencies from requiring unreasonable indemnification clauses as a condition of loans made to local governments
7. allow cities and towns to adopt separate water and sewer rates for low income residents
8. increase the debt limit on general obligation bonds from 1.51% of assessed value to an amount that is less restrictive.
9. fund continuation of the Main Street Program at the level recommended in the Executive Budget
10. allow cities and counties to adopt a realty transfer tax of up to 1% with voter approval, committing 5% of the proceeds for property tax relief and providing local governments the discretion to determine the use of the remaining proceeds and provide exemptions
11. extend the time for the payment of sidewalk assessments from 12 to 20 years
12. amend 15-10-420 MCA to allow municipal property tax collections to increase by the full rate of inflation
13. provide for equal assessment of parcels in street lighting districts in addition to the front footage and taxable value methods in current law.
Be it further resolved that the League will oppose bills to:
1. reduce, freeze, or in any other way interfere with the distribution of Entitlement Payments to local governments as provided by the 2001 law
2. transfer state programs or responsibilities to local governments without full, fair and permanent reimbursement of all costs
3. exempt state or local education levies from the base of Tax Increment Finance Districts established in the future
4. increase the assessments on cities and towns for the statewide Public Defender Program unless it can be shown that the additional costs are necessary and reasonable.
