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1. Legislative PrioritiesCity of Kalispell Post Office Box 1997 - Kalispell, Montana 59903 Telephone: (406) 758-7701 Fax: (406) 758-7758 MEMORANDUM To: Mayor Johnson and City Council From: Doug Russell, City Manager% Re: Legislative Priorities Meeting Date: May 12, 2014 BACKGROUND: In discussions related to state legislation impacting municipal activities, the City Council has discussed the potential of adopting a set of legislative priorities for the upcoming legislative session. Though there are not any specific pieces of legislation that we are aware of that impact the legislative priorities, adopting these areas provides a unified platform for council members and municipal staff to use when addressing our representatives for and during the upcoming legislative session. The proposed set of legislative priorities include: 1) support of a local option sales tax, 2) support for maintaining tax increment financing as an economic development tool, 3) support for streamlining special district legislation, 4) support for legislation that provides consistency in the application of impact fee legislation, and 5) support for legislation that mitigates the economic impact for increasing regulatory standards for municipalities. RECOMMENDATION: It is recommended the City Council discuss and amend the proposed set of legislative priorities. City of Kalispell Montana Legislative Priorities The City of Kalispell is supportive of efforts to improve financial options related to all areas of municipal operations where local control and decision making can be effectively applied. While this list of priorities does not single out any specific proposed bill, in general the City of Kalispell has identified these five areas of policy interest. Local Sales Tax Option: The City of Kalispell supports legislation that would provide local communities the option of enacting a voter approved sales tax within municipal limits that would provide an opportunity to maintain infrastructure and services for our community that is impacted by a large number of people that do not reside within the City of Kalispell. - Tax Increment Financing: The City of Kalispell supports continuing legislation that provides municipalities the opportunity to use Tax Increment Districts as part of an Effective Economic Development Strategy, and opposes legislation that would limit the effectiveness and options currently present in state statutes. Special District Legislation: The City of Kalispell supports legislation that would streamline the ability to establish special districts. Impact Fee legislation: The City of Kalispell supports legislation that provides long term consistency for infrastructure development for municipalities, developers, and builders within the regulatory parameters of impact fee legislation. Environmental Quality: The City of Kalispell supports legislation that would mitigate the economic impacts of increased regulatory standards on municipal operations such as water production and wastewater treatment.