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Municipal Revenue & Taxation (1) <br />I -A State and Local Fiscal Relationship <br />Metro Cities supports a strong state and local fiscal relationship that emphasizes adequacy, <br />equitability and accountability for public resources, and effective communication between <br />the state, its cities, and the public about the roles and responsibilities of state and local <br />governments. Metro Cities believes that the state and local relationship is in decline, as <br />expressed through continued reductions in state aids and credits, and increasingly <br />unpredictable levels of those aids and credits. The diminishment of the state and local <br />partnership has forced the funding of city services to be disproportionately reliant on the <br />property tax and has placed an undue burden on city cash flows. Increasingly, cities are <br />also bearing more of the responsibility for the costs for services that have historically been <br />the responsibility of the state. <br />Metro Cities supports a state and local fiscal relationship that affirms the goal of all citizens <br />receiving adequate levels of basic public services at relatively similar Ievels of taxation, that <br />compensates cities for service costs created by non- taxpaying users of city services, that <br />reduces tax burden disparities among communities, and that assists cities with high needs <br />and relatively low fiscal capacities. <br />Metro Cities supports a strong state and local fiscal partnership that emphasizes the <br />following principles: <br />■ Strong financial stewardship and accountability for public resources that <br />emphasizes maximizing efficiencies in service delivery and effective communication <br />between the state and local units of government, and to the public, about state and <br />local roles and responsibilities; <br />• Certainty and predictability in revenue sources including the property tax and local <br />government aids; <br />• Adequate revenue sources available to cities that allow the needs of cities to be <br />• met, mandates to be funded, and that maintain our state's economic vitality and <br />competitiveness; <br />• Recognition that a `one size fits all' system that limits cities to the property tax as the <br />major non -state aid revenue source does not fit all and to permit.access to other tax <br />and revenue sources that are not currently accessible as well as oppose reductions <br />or limitations on the use of various license, development, or other general fees to <br />pay for related services; <br />I -B Levy Limits <br />Metro Cities strongly opposes levy limits. Levy limits undermine local budgeting processes, <br />planned growth, and the relationship between locally elected officials and their residents <br />2011 Legislative Policies <br />