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MONTANA LEAGUE OF CITIES AND TOWNS 2010 RESOLUTIONS Resolution #1 General Principles Local governments provide the services and facilities that are the foundation of the Montana economy. Our cities and towns are among the best places in the country to live and work, raise a family and operate a business. The League of Cities and Towns is committed to preserving and promoting these qualities, and it will be guided during the 2011 Legislature by the following principles of fair, affordable and effective local government: 1. protection of current state transfer payments and the promotion of new sources of revenue to fund essential local services 2. diversification of the local government finance structure 3. maintenance of state grant, loan and investment programs to fund capital improvements and enhance the value of local tax dollars 4. strict adherence to federal and state laws and policies that prohibit unfunded mandates 5. protection of natural resources through laws that encourage the development of community water and sewer systems 6. effective planning and development policies that discourage sprawl and promote the more efficient delivery of local services 7. opposition to all measures that limit or diminish municipal authority in contradiction of the Local Government Article of the 1972 Constitution 8. responsible development of the state’s natural resources including renewable energy and alternative fuels 9. recognition of the contribution of cities and towns to the history and culture of our state and the vital role of local governments in the future direction and development of Montana. ---PAGE BREAK--- Finance Policy Resolution #2 Full Funding of the Entitlement Program In 2001, the Legislature, with the support of cities, towns, counties and consolidated governments, enacted House Bill 124. The so called “Big Bill” was intended to stabilize and simplify state revenue transfers between the state and local governments, and to connect future distributions to the performance of the state’s economy. Since the law was enacted, entitlement payments have increased each year through up and down economic cycles in accordance with the formula that tracks per capita income and gross state product. Now, with the state facing a possible $400-million budget deficit, the Legislative fiscal staff has recommended freezing entitlement payments at current levels. There are many arguments cities can offer to counter this proposal: 1. State collection of municipal tax revenues relinquished under HB-124 exceed distributions back to cities and towns by at least $20-million since the law was passed in 2001. 2. The bill also simplified state revenue administration and reduced costs. 3. In 2007, when the state was sitting on a $1-billion budget cushion, local governments did not propose adjusting the growth formula to increase allocations. 4. This program is based on an agreement between the state and local governments. It may not be a legal contract but it is an ethical obligation. 5. The formula is based on four years of economic performance, and because good times will be replaced by recession years, the cost of keeping the promise may be less than $6-million over the next two years. 6. Freezing entitlement payments will force cities to cut public safety and other services and could lead to higher mill levies. Be it resolved that the League of Cities and Towns will oppose any measure that will reduce, delay, or otherwise interfere with the allocation of entitlement payments under the formula agreed to by the state and local governments in 2001. ---PAGE BREAK--- Resolution #3 Tax Increment Financing Tax increment financing has been one of the most successful economic and community development programs in Montana for nearly 30 years. A bill to remove the 95-mill state school equalization levy from prospective increment districts is likely to be introduced in the 2011 Legislature. If this bill is passed, it will eliminate tax increment financing as an economic development strategy at a time when the unemployment rate in Montana is nearly Other changes in the Tax Increment Financing Laws, specifically a revision of the term “blight” in the urban renewal section, are also likely to be considered by the 2011 Legislature. Be it resolved that the League of Cities and Towns will oppose any legislation to exempt state levies or otherwise restrict the financing and operation of tax increment districts. Be it further resolved that the League of Cities and Towns will support legislation to clarify and update Tax Increment Financing statutes to promote public support for understanding of a vital economic development strategy. Resolution #4 Alternative Assessment Methods for Street Maintenance Districts In Montana, local governments are heavily reliant on taxes or special assessments on property owners. Cities do not have authority under state law to shift some of this financial responsibility to tourists and other nonresidents who use municipal facilities, programs and services. Allowing cities to use retail transactions as a method of assessing the costs of street maintenance would reduce the financial pressure on local property owners and assure that visitors pay a portion of the cost of transportation services. Be it resolved that the League of Cities and Towns will support legislation to expand the list of assessment methods for street maintenance districts to include retail transactions. ---PAGE BREAK--- Resolution #5 Public Defender Costs Under the threat of legal action, the 2005 Legislature established a statewide system to provide legal defense for indigents charged with crimes that carried the possibility of a jail sentence. Cities agreed to contribute the equivalent of $1.76 per capita to cover the expected costs of public defender services in city courts. Program costs have routinely exceeded budgets, and the Legislature will be considering ways to cut or reallocate some of the costs of the public defender program. The Legislative fiscal staff has recommended two options that would hit cities: 1. Eliminate the possibility of jail time for ordinance violations. 2. Require cities to pay public defender costs for ordinance violations that carry the possibility of jail time. Cities and towns are paying $861,000 annually for public defender services, and they should not have to pay additional costs to assure effective enforcement of local ordinances. Be it resolved that the League of Cities and Towns will oppose any legislation that will require additional payments for the public defender program or weaken the enforcement of local ordinances. Resolution #6 Property Taxes Every time the Legislature convenes there is a high pile of bills to revise property taxes which are the most important source of revenue for local governments and public education. Numerous reform bills will be introduced in 2011. The list of bill draft requests includes proposals to cut the tax rate on business equipment, exempt other classes of property and abbreviate the current six-year reappraisal cycle. Cities must work to convince legislators that unreimbursed tax reductions and exemptions will increase levies on other classes of property, while a new reappraisal system could lead to a higher level of public suspicion and more protests. Be it resolved that the League of Cities and Towns will monitor bills that will diminish the municipal tax base, complicate the calculation of property values, or erode the principles of equalization. ---PAGE BREAK--- Resolution #7 Police, Fire and Public Employee Retirement Systems State law prohibits part-time employees and many elected officers of cities and towns from receiving state retirement disbursements or benefits from previous public employment without a 30-day break in service. Be it resolved that the League of Cities and Towns will support legislation to allow part-time public employees and elected officers to collect pension disbursements and benefits earned during previous public employment without a break in service. Be it also resolved that the League of Cities and Towns will oppose bills that unreasonably increase employer contributions as the Legislature works to offset the effects of the recession on retirement accounts. Be it further resolved that the League will support legislation to allow cities and towns to exceed the limit on benefits for volunteer firefighters in 19-18-602 (3B) if their pension account is actuarially funded. ---PAGE BREAK--- General Measures Resolution #8 Medical Marijuana In 2004, Montana voters approved an initiative to allow the use of marijuana as a treatment option for chronic medical conditions. The federal government subsequently decided not to enforce laws prohibiting the sale and use of the drug in states with medical marijuana laws. The use of medical marijuana expanded dramatically. Close to 25,000 people have obtained cards allowing them to use marijuana, and cities have been forced to deal with the public health and safety consequences through zoning, business licensing and other municipal powers. The 2011 Legislature will consider numerous measures to regulate medical marijuana. The effect of these bills could range from minor modifications to an outright repeal of the law. Cities and towns recognize the need for stricter control of the production, sale and use of medical marijuana through state and local authority, but also understand the humanitarian intent of the 2004 initiative. Be it resolved that the League of Cities and Towns will support legislation to restrict the use of marijuana for all but legitimate medicinal purposes and protect local government authority to regulate the production, sale and use of the drug through zoning, licensing and other powers. Resolution #9 Mandatory Use of Safety Belts The benefits of safety belts are recognized by experts across the country and confirmed by statistics. They save lives, reduce the severity of injuries and cut insurance costs. In Montana failure to wear a safety belt is a secondary violation, which impedes the enforcement of the law. Be it resolved that the League of Cities and Towns will support Legislation to establish the failure to use safety belts as a primary offense. ---PAGE BREAK--- Land Use and Environmental Regulation Cities and towns have worked many years to protect Montana’s land and water resources through wise community development policies that emphasize centralized water and sewer systems, efficient delivery of services to concentrated populations and compliance with fair and affordable environmental standards. Recent development patterns in Montana threaten our legacy of open space and clean water. Cities are dedicated to working with state and federal agencies to establish growth and land use policies that recognize property rights while preserving the natural assets of Montana. Resolution #10 Septic System Mixing Zones, Wastewater Re-use and Nutrient Standard Affordability Limits The Interim Water Policy Committee and Department of Environmental Quality will recommend a bill to the 2011 Legislature that will restrict mixing zones for septic drain fields to property boundaries. This measure is the first marker on the long road to basin- wide nutrient standards and more effective water quality regulation. The Department will also recommend legislation to allow for the re-use of municipal wastewater, which could be another effective method of improving water quality. The Municipal Water Quality Committee recommends an amendment to 75-5-103 MCA to limit nutrient standard compliance costs to 1% of median family income. Be it resolved that the League of Cities and Towns will support legislation to restrict septic drain fields to property boundaries. Be it also resolved that the League of Cities and Towns will support legislation to allow the Board of Environmental Review to adopt rules to allow for the re-use of municipal wastewater. Be it further resolved that the League of Cities and Towns will support legislation recommended by the Municipal Water Quality Committee to limit the cost of compliance with temporary nutrient criteria to 1% of median household income for the community served by the treatment works. ---PAGE BREAK--- Resolution #11 Clarification of Exemptions in the Subdivision Statute A legal disagreement over the meaning of Section 76-3-204 MCA that exempts certain conveyances of property from subdivision review threatens to unnecessarily increase the workload of municipal planning departments. Be it resolved that the League of Cities and Towns will support legislation recommended by the Montana Association of Planners to exempt the conveyance of certain properties located with municipal boundaries from subdivision review if they meet specific land use requirements. Resolution #12 Municipal Water Rights Municipal systems represent the best use of Montana’s water resources. These systems provide clean water and reliable service in the largest cities and smallest towns, and they are the foundation of the future development of our state. Cities must have clear rights to adequate supplies of water and the authority to expand service to accommodate growth. Be it resolved that the League of Cities and Towns will support legislation to define “place of use” in 85-2-234 MCA as the general area of a city or town including properties that are receiving municipal water service or are likely to be connected in the future. ---PAGE BREAK--- Resolution #13 Support for Programs Vital to Cities and Towns The budget deficit will affect every funding question that comes before the House Appropriations and Senate Finance Committees in the 2011 Legislature. In this situation no program is safe and virtually every expenditure will be challenged. The Main Street Program in the Department of Commerce and the Local Government Center at Montana State University have identified unique development opportunities and provided valuable educational programs for cities and towns. Be it resolved that the League of Cities and Towns will support adequate funding of the Main Street Program to continue the preservation and economic redevelopment of Montana’s downtowns. Be it further resolved that the League will support state appropriations for the Local Government Center at Montana State University to maintain the Mayor’s Academy, Clerk’s Institute and other education programs for municipal officers and employees. Resolution #14 Passenger Rail Service Across Northern Montana, Amtrak has provided affordable and convenient passenger rail service to cities and towns that have few other transportation alternatives. Congress has frequently discussed but never approved proposals to restore Amtrak Service along the “southern route”. Be it resolved that the League of Cities and Towns will support any federal or state efforts to restore Amtrak service along the southern route.