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HomeMy WebLinkAbout2004-07-12 04-224 RESOLVECOUNCIL ACTION Item No. a6-224 Date: 7-12-N Item/Subject: Resolve, F pressing the Opposition of the City of Bangor to the Paleeky Tax Cap Proposal That Will Appear on the November Ballot Responsible Department: City Manager The attached resolve will place the City on record in apposition to this November's tax cep referendum. The so-called! "Palesky" question places a $10 mil limit on property taxes that would reduce the property taxes committecl by the City by more than $20 million, a reduction of over 50%. The proposal also limit the ability of municipalities to replace this lost revenue through other taxes or new fees. Such a revenue loss will be devastating to the Cry and may require significant reductions in or elimination of basic municipal services In virtually all areas of our operation. Further, the status of the State budget and the conditions of it finances will limit the posibility of a state "bail-out" given the estimated state-wide los of property tax revenue estimated at over $600 million. The additional support that may be providetl by the state will came ether as a result of Increases In state taxes or through reductions in state programs and services. Further, allocation of any additional support to municipalities will he problematic since a significant number of munidpalums will not be affected "e proposed $10 mil limit while others, mostly Maine's service centers, will see dramatic reductions. In addition, further reliance upon state financial support will increase the level of state control over local oDemtions. Adopting tht resolve will place the City on record and authorize mry staff to speak in opposition to this proposal. I recommend your approval. Department Head Manager's Comment: Q -C'Ciry Associated Information: Budget Approval anceDire r Legal Approval: City o itor Introduced for X Passage _ First Reading Page_ of Referral 04-224 " a& Assigned to C 11on Vaciiogtua. Syly 12. 2004 CITY OF BANGOR ODLEE) Resolve, Expressing the Opposition of the City of Bangor to the Palesky Tax Cap Proposal that Will Appear on the November Ballot WHEREAS, Carol Palesky and the Maine Taxpayers Action Network have secured the necessary signatures to place a tax cap proposal on the November ballot; and WHEREAS, if adopted and implemented as written, the result will be the loss of $950 million in municipal property tax revenue, representing over 48% of the property tax resources that towns and cities would otherwise collect; and WHEREAS, the Palesky proposal contains dozens of provisions that do not coincide with Maine law and which appear W be inconsistent with the Maine Constitution, making it difficult to project with certainty the actual impact of the proposal; and WHEREAS, under the assumption that certain provisions of the proposal will be found to be unconstitutional, the most likely result appears to be that municipalities will lose approximately $600 million in property tax revenue, a 30% reduction; and WHEREAS, as a service center, the impact on Bangor will be greater, resulting in a likely loss of more than $20,000,000 in property tax income, a reduction of over 50%; and WHEREAS, the proposal also significantly limits the ability of municipal government to replace this lost revenue; and WHEREAS, the impact of such a reduction on existing municipal services will be devastating, resulting in significant reduction or elimination of basic municipal services such as police, fire, public works, parks and recreation, schools, and investments in infrastructure to support economic development; and WHEREAS, given the status of the State budget and the condition of its finances, the State will be unable to substantially replace this lost municipal revenue or will be able to do so only through dramatic reductions in state programs and services. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT We hereby express our vehement opposition to the Palesky tax cep proposal that will appear on the November 2, 2004 general election ballot and oil upon all of our citizens to join us in voting against this proposition. This proposition will dramadmily reduce the ability of the City of Bangor to meet the basic safety, health, and educational needs of our community and will severely damage the quality of life enjoyed by our community. ID CLTY CO004 July IT, 2006 Motion Made and seeouded for Passage Passed camLno mm p 06-226 MES0LVM ( ITLE)�P�eaamg tee opponition oe tLe City p Proposal clout Will Apprear on the Assigned to Councilor