AWC Legislative Bulletin - Volume 33, No. 4
January 29, 2010  (Plain Text Version)

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In this issue:
Time for action
Energy & telecommunications
Environment & water
General local government
Infrastructure, transportation & economic development
Land use & housing
Law & justice
Municipal finance
Personnel & labor relations

Municipal finance

Fiscal flexibility – AWC priority

On January 27, Rep. Ross Hunter (D-Medina) spoke to our members at AWC’s City Legislative Action Conference about the fiscal flexibility proposals. We are very grateful for Rep. Hunter’s commitment to cities as he has been working very diligently with his caucus to advance a number of proposals (HB 2650, HB 2749, and HB 2773) - all different - that would eliminate some restrictions including supplanting requirements, expand purposes of some current revenue sources, and otherwise address restraint of existing revenues. Details of these bills can be found in a comparison matrix.

Rep. Hunter stated he is working to refine these proposals and that ultimately, one bill will be advanced – likely early next week. It has yet to be determined exactly what provisions will be included in that bill. However, discussions have included a provision whereby if a county council or commission does not choose to implement the 0.3% public safety sales tax, cities may impose a 0.1% public safety sales tax by councilmanic action through December 2014. Voter approval would be required thereafter.

Currently this 0.3% sales tax requires voter approval. HB 2773 includes a provision that allows counties to impose via legislative authority and split revenues 60-40 between the county and cities. The city councilmanic authority is new and not previously included within one of the bills. AWC supports this provision and other components of the above outlined bills.

We are anticipating that the Senate versions of these bills (SB 6164 and SB 6424) will be heard in the Senate Ways and Means Committee sometime next week. The Senate is also interested in refining these proposals and advancing one bill which would include the city councilmanic public safety sales tax provision outlined above.

Now is the time to contact your legislators and remind them that cities and towns need flexibility with local revenues. Calls and emails are particularly needed if you legislators serve on either the House Finance Committee or Senate Ways & Means Committee.