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
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Proposal clout Will Apprear on the
Assigned to Councilor