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