Loading...
HomeMy WebLinkAbout2000-02-28 00-121 RESOLVEItem No. 0e-121 Date: February 26, 2000 Item/Subject: Resolve, Calling Upon the State of Maine to Provide Greater Flexibility in Local Government Finance fo Allow For Signifiant Capital Projects, Economic Development Initiatives, and Properly Tax Relief. Responsible Department: City Council The attached! mauve was discussed at the Joint Bangor/Brener Cound) reading W Febmary 17. At that tons, a quorum of me Council was not present, so the resolve appears an tonight's consent agenda to allow for final appy al. Orce approved, this and me ntber resolves discussed wRh the City CourrA of Brewer will be forwaded as approprlMe. werammeni maim Managers Comments: 1 recommend yourapproval. Pry Manager Assodated Information: Resolve Rnance Dir r Legal Approval: City lone [ntrotluced for Consent X Passage _ Fket Retailing Page_ of Retained fo Finance Assigned to councilor alavchette Pebx a 17. 200 City of Brewer and City of Bangor 00-121 (TITLE.) Resolve, Calling Upon the State of Maine to Provide Greater Flexibility In Local Government Finance to Allow For Significant Capital Projects, Economic Development Initiatives, and Property Tax Relief WHEREAS, IoW I government in Maine is heavily dependent upon property taxation, with Property taxes representing the primary source of Jowl revenue; and WHEREAS, Maine's Service Center Communities, those communities which provide 71% of the State's jobs, 74% of all services, and 77% of consumer retail sales, face significant financial limitations due to full value property tax rates which average almost 50% mom than those of other communities; and WHEREAS, because Maine's service center communities are home to larger institutions such as hospitals, schools, and community service agencies, tax exempt property as a percentage of total valuation averages over 21%, 16.4% higher than the State average; and WHEREAS, while service center communities generate almost 75% of the funds for General Revenue sharing, they receive only 54% of shared revenue although they provide 100% of the municipal services required of businesses that provide jobs and sales; and WHEREAS, as the State's primary engines of economic growth, these communities are often expected to provide economic incentives for the creation of new businesses and jobs through Tax Increment Financing, a mechanism which directs a portion of new property tax revenue back to the economic development project and reduces revenues available for general government purposes; and WHEREAS, given existing high property tax burdens, these communities are often unable to undertake needed capital projects of regional or state-wide concern; and WHEREAS, higher than average property tax rates in Maine's urban communities also provide a disincentive to residential development and home ownership, adding to the problems and costs associated with sprawl. no ME Assigned to councilor alavchette Pebx a 17. 200 City of Brewer and City of Bangor 00-121 (TITLE.) Resolve, Calling Upon the State of Maine to Provide Greater Flexibility In Local Government Finance to Allow For Significant Capital Projects, Economic Development Initiatives, and Property Tax Relief WHEREAS, IoW I government in Maine is heavily dependent upon property taxation, with Property taxes representing the primary source of Jowl revenue; and WHEREAS, Maine's Service Center Communities, those communities which provide 71% of the State's jobs, 74% of all services, and 77% of consumer retail sales, face significant financial limitations due to full value property tax rates which average almost 50% mom than those of other communities; and WHEREAS, because Maine's service center communities are home to larger institutions such as hospitals, schools, and community service agencies, tax exempt property as a percentage of total valuation averages over 21%, 16.4% higher than the State average; and WHEREAS, while service center communities generate almost 75% of the funds for General Revenue sharing, they receive only 54% of shared revenue although they provide 100% of the municipal services required of businesses that provide jobs and sales; and WHEREAS, as the State's primary engines of economic growth, these communities are often expected to provide economic incentives for the creation of new businesses and jobs through Tax Increment Financing, a mechanism which directs a portion of new property tax revenue back to the economic development project and reduces revenues available for general government purposes; and WHEREAS, given existing high property tax burdens, these communities are often unable to undertake needed capital projects of regional or state-wide concern; and WHEREAS, higher than average property tax rates in Maine's urban communities also provide a disincentive to residential development and home ownership, adding to the problems and costs associated with sprawl. NOW, THEREFORE, BE IT RE90LVED BY THE CITY COUNCILS OF THE CITY OF BANGOR AND BREWER, THAT: We hereby call upon the Governor and Legislature of the State of Maine to recegnize the financial problems and limitations faced by Maine's service center communities and to work diligently, in concert with us, to provide these local governments with the financial resources and Flexibility necessary to allow us to lower the property tax burden faced by our residents, undertake economic development programs in support of regional and state-wide needs, and address capital needs beyond the ability of the local property tax. Toward this end, we support the current efforts of the Taxation Committee of the State Legislature to implement Revenue Sharing II, a program which recognizes the unique burdens of our service center communities, as an immediate step to begin to address current property tax inequities. At the same time, we call upon the Governor and Legislature to work toward providing local communities with the financial Flexibility they need to undertake economic development efforts and capital projects of regional significance from sources other than the property tax. IH CITY COwP February 28. 2000 0¢121 Passed RES CMe, Calling Uponorbestate of Maine to Provide Greater Flexibility in Local Covermeut Piastre to Allow for Significant Capital Projects, 8couauic Development Initiatives. and Property Tax Relief AWgnetl to