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Municipal Revenue & Taxation <br />1-A State and Local Fiscal Relationship <br />A functional state and local fiscal relationship must emphasize adequacy, equitability, <br />sustainability and accountability for public resources, and effective communication <br />among the state, cities, and the public on the roles and responsibilities of state and local <br />governments. An effective partnership must also emphasize practices that strengthen <br />collaboration and partnership between the state and local units of government. <br />Services provided by cities are traditionally funded through a combination of property <br />taxes, fees/charges and state aids. Increasingly, cities are bearing more of the costs for <br />services that have historically been the responsibility of the state. <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 emphasizes <br />maximizing efficiencies in service delivery and effective communication between the state <br />and local units of government, and to the public, about state and local roles and <br />responsibilities; <br />• Certainty, predictability and reliability in revenue sources including the property tax and <br />local government aids, and dedicated funds to meet specific local government needs. Metro <br />Cities opposes the diversion of such dedicated funds to help balance state budgets; <br />• Adequate revenue sources available to cities that allow the needs of cities to be met, <br />citizens to receive adequate services at similar levels of taxation, mandates to be funded, that <br />maintain our state's economic vitality and competitiveness; <br />• Adequate and timely notification regarding new legislative programs or modifications to <br />existing state programs or policies to allow cities sufficient time to plan for implementation; <br />and any effects on local budgeting processes; <br />• The concept of performance measuring, but opposition to using state established local <br />performance measurements to determine the allocation of state aids to local governments, or <br />to deny local governments the authority to establish their own budgets and levies, as such <br />measurements do not account for varying local needs and circumstances. <br />1-B Revenue Diversification and Access <br />Metro Cities supports a balanced and diversified revenue system that acknowledges <br />diverse city characteristics, needs and revenue capacities, and allows for greater stability <br />in revenues. Any diminished level in the provision of state aids creates severe challenges for <br />2018 Legislative Policies <br />