HomeMy WebLinkAbout2006-10-11 06-353 RESOLVEItem/Sub)ec: Resdve, Expressing the Opposition of Ne City of Bangor W the Taxpayer &II of
Rights Initiative that Nil Appear on the November Ballot.
Responsible Departmwrb City Council
Colltmeri This November, a drum laxative known wMeTag:ayer Bill dRghts CTABOR) WIl appear
on the ballot. This proposal, ifadopted, will significantly affect an how Maine's muddpelities all schools.
TABOR would establish said spelling halts while also requiring that any in crease in tax she orfew runs
a 2/3rds vote tithe Ideal legislative body all majority approval ata local election. Spending Increases waald
generally be limited m the Nage in Me consumer once index adjusted by the change In a communitys
population (for the mun opal porton tithe budget) or student papulation (for schools).
Basel a Maine Munidpel Association matters assuming tat TABOR had been in effect sig 1995, the Oty's
General Fund budget without overrides, would hire been $6.2 million lower after ten years, a 17.99b
decrease. Green Me extent of the Cars fixed overhear, the majority of such reporters could only de
aaompkhetlthraughtllmimtlrg programs and passive. Forjusttheanentyear, theOrywoultl haveM
have reduced its General Fond budget by about $12 million; Me School DepeNpeM would have had to cut
about $630,000.
In search Wthe covendual maylenn impacts on services, and Me quality alife in Bangor MM they support,
there are numerous technical problems with this leg'slabon. Sinmkc mallspediN,tl limftmuxappty
to capital project, such as Me Police Department building, as well as to all enterprise funds. This would
Introduce a high level ofvariables since interpose fund revenues and eapitil expenditures on Increase or
tlecrease dmmdlwlly tram ywrto year. Sinmthe peMyeaYsspeMing limit k based an thecunentyears,
wNch Is not fully known by the end of the year, estimates all annual recencihotions will be required The
any or scrods could Inadvertently exceed Me expeldBum limit g these saturates were incorrect. The
override election process is wmbersant Themeaningdvanous pm'lacra k unclear, potentudly requlrtng
Iegislame or juriaal derivation. The population growM facer bass net recognize Me service tlemands
-` placed on Ba,gor as a service ceder wMh a much brgerday than nighttime population. Anti so on.
The altaNer reverse will express Me CNy's appetition to this proposal and auMonZe staff M express this
opposition and participle in efforts to alucem the public regarding this measure and its potential impacts.
Department flood
Mangoes Comments: Government Operations recanmmtls Mat the Goosed take a position In
aprod int M TABOR. This has also been discussed at a Coundl Workshop where Me majoray present
indicated apposition.
City Manager
Associated IMarmation:
Idem hi
Budget Approval:
Date:
10-11-06
finance Director
IIR
� 5 3
Item/Sub)ec: Resdve, Expressing the Opposition of Ne City of Bangor W the Taxpayer &II of
Rights Initiative that Nil Appear on the November Ballot.
Responsible Departmwrb City Council
Colltmeri This November, a drum laxative known wMeTag:ayer Bill dRghts CTABOR) WIl appear
on the ballot. This proposal, ifadopted, will significantly affect an how Maine's muddpelities all schools.
TABOR would establish said spelling halts while also requiring that any in crease in tax she orfew runs
a 2/3rds vote tithe Ideal legislative body all majority approval ata local election. Spending Increases waald
generally be limited m the Nage in Me consumer once index adjusted by the change In a communitys
population (for the mun opal porton tithe budget) or student papulation (for schools).
Basel a Maine Munidpel Association matters assuming tat TABOR had been in effect sig 1995, the Oty's
General Fund budget without overrides, would hire been $6.2 million lower after ten years, a 17.99b
decrease. Green Me extent of the Cars fixed overhear, the majority of such reporters could only de
aaompkhetlthraughtllmimtlrg programs and passive. Forjusttheanentyear, theOrywoultl haveM
have reduced its General Fond budget by about $12 million; Me School DepeNpeM would have had to cut
about $630,000.
In search Wthe covendual maylenn impacts on services, and Me quality alife in Bangor MM they support,
there are numerous technical problems with this leg'slabon. Sinmkc mallspediN,tl limftmuxappty
to capital project, such as Me Police Department building, as well as to all enterprise funds. This would
Introduce a high level ofvariables since interpose fund revenues and eapitil expenditures on Increase or
tlecrease dmmdlwlly tram ywrto year. Sinmthe peMyeaYsspeMing limit k based an thecunentyears,
wNch Is not fully known by the end of the year, estimates all annual recencihotions will be required The
any or scrods could Inadvertently exceed Me expeldBum limit g these saturates were incorrect. The
override election process is wmbersant Themeaningdvanous pm'lacra k unclear, potentudly requlrtng
Iegislame or juriaal derivation. The population growM facer bass net recognize Me service tlemands
-` placed on Ba,gor as a service ceder wMh a much brgerday than nighttime population. Anti so on.
The altaNer reverse will express Me CNy's appetition to this proposal and auMonZe staff M express this
opposition and participle in efforts to alucem the public regarding this measure and its potential impacts.
Department flood
Mangoes Comments: Government Operations recanmmtls Mat the Goosed take a position In
aprod int M TABOR. This has also been discussed at a Coundl Workshop where Me majoray present
indicated apposition.
City Manager
Associated IMarmation:
Budget Approval:
AICI�ii,e� C
finance Director
Legal Approval:
City S ,-Mwr
Introduced for
_ Passage
First Reading
papa _ of _
Referral
06 353
Assigned to couacilor ams October 11. 2006
i CITY OF BANGOR
(TITLE.) Resolve, Expressing the Opposition of the City of Bangor to the
Taxpayer Bill of Rights Initiative that Will Appear on the November Ballot.
WHEREAS, a ballot initiative entitled the Taxpayer Bill of Rights (TABOR) will
appear on the November ballot; and
WHEREAS, the TABOR initiative would require that any local spending
increase above an amount established by formula or a tax or fee
increase of any amount must be approved by a 2/3rds vote of the
City Council and at a local referendum election; and
WHEREAS, the spending limit on local government would be based on the
lower of two formulas: the change in total assessed value or the
consumer price index adjusted by population change; and
WHEREAS, the spending limit for local schools would be based on the
consumer price index adjusted by student population; and
WHEREAS, if TABOR had been in effect for the City's Fiscal Year 2006, City
General Fund expenditures would have to have been reduced by
about $1.2 million and school expenditures by $635,000; and
WHEREAS, according W an analysis prepared by the Maine Municipal
Association, if TABOR had gone into effect in 1995, the City's
General Fund, assuming no overrides, would have been reduced
by more than $6 million over the next ten years, a 17.40/a
decrease; and
WHEREAS, in addition to applying to normal governmental functions, TABOR
would also apply to various city enterprise funds including Bangor
International Airport, the Economic Development Fund, the Golf
Course, and the Sewer Fund, operations which are largely
supported by user fees and which do not depend upon taxes; and
WHEREAS, when applied to entities like Bangor International Airport, TABOR
would limit the revenues that we could receive from airlines and
other corporate and out of community users and may potentially
�)6 253
violate federal regulations which require the City to maintain
certain facility and operating standards; and
WHEREAS, in regard to those enterprise funds that operate in a manner
similar to a private business, TABOR would impose restrictions
similar to setting an artificial limit on the sales and revenues of a
private corporation; and
WHEREAS, while TABOR provides for an override process that would allow
for spending increases over and above those allowed by formula
as well as for increases in fees charged for services, this process is
both time consuming and expensive, requiring a 2/3rds vote of
the City Council and a referendum election; and
WHEREAS, most of the City's fees are set at a level to recover the City's cost
of providing a service and the requirement for voter approval of
increases appears to be unnecessary; and
WHEREAS, TABOR is modeled after a similar law in Colorado, however, the
spending limitations imposed on local governments in the Maine
proposal are stricter and are particularly disadvantageous to
Maine's larger communities such as Bangor since the TABOR
formula that will most often apply is based on the cost of living
plus population change, where population growth is a poor
indicator of the services demanded of a community such as
Bangor where the day time population far exceeds the resident
population; and
WHEREAS, if adopted by the voters, the City's budget may frequently become
a budget by referendum where voters will be asked to approve
spending levels and fee increases on an annual basis, potentially
including increases in fees such as airport landing fees, recreation
program fees, docking fees at Bangor Harbor, and other similar
questions that the community's elected officials may be in a
better position to answer; and
WHEREAS, if the proposal is adopted, it is likely to jeopardize the City's bond
rating by reducing the City's financial flexibility, resulting in
higher interest costs on needed investments in the City's
infrastructure; and
WHEREAS, as the premier service center in Northern and Eastern Maine, the
City of Bangor supports an infrastructure essential for the future
of our region and its economy, and TABOR would weaken the
ability of the City to meet our community's needs; and
WHEREAS, over time, TABOR will result in a reduction in the governmental
and educational services provided by the City to its residents and
visitors, services which our residents have long supported and
come to expect;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
BANGOR THAT
We hereby express our opposition to the TABOR proposal which will appear
an the November election ballot and call upon our citizens and the citizens of
our region to join us in opposition to it.
BE IT FURTHER RESOLVED THAT
City staff is hereby authorized to express the opposition of the City to this
measure and to participate in efforts to educate the public as to its meaning
and its effect.
IN CITY COMCIL
October 11. 2006
Motion Made aad Secnoded
for Passage
Notion Doubted
vote- ]-0
Councilors voting Yee: Allen,
D'Errim, Farrington, GratNlck,
Greene. Bevel A Palmer
Councilors voting No: None
Councilors Absent: Casheell.
Ston
Pae �d
C 1Y CLER
p 06-�53
N 8SOL4N
(f1TLEJ Bsvreesive [he O000si[Son of tLe
City of Bangor to the Taxpayer Bill of
Nfehts Initiative that N111 Appeal on he
November Ballot