10-24-16 Council Work Session Agenda and MaterialsCITY COUNCIL
WORK SESSION AGENDA
Monday, October 24, 2016, at 7:00 p.m.
City Hall Council Chambers, 201 First Avenue East
A. CALL TO ORDER
B. DISCUSSION ITEMS
1. Legislative Priorities
C. PUBLIC COMMENT
Persons wishing to address the council are asked to do so at this time. Those addressing
the council are requested to give their name and address for the record. Please limit
comments to three minutes.
D. CITY MANAGER, COUNCIL, AND MAYOR REPORTS
E. ADJOURNMENT
UPCOMING SCHEDULE / FOR YOUR INFORMATION
Ward III Town Hall Meeting — Thursday, November 3, 2016, at 7:00 p.m. — Council Chambers
Next Regular Meeting — November 7, 2016, at 7:00 p.m. — Council Chambers
Coffee with the Chief —November 9, 2016, at 5:30 p.m. — Sykes Diner, 202 2nd Avenue West
Next Work Session — November 14, 2016, at 7:00 p.m. — Council Chambers
Reasonable accommodations will be made to enable individuals with disabilities to attend this
meeting. Please notify the City Clerk at 758-7756.
Watch regular City Council sessions live on Charter Cable Channel 190 or online at the
Meetings on Demand tab at www.kalispell.com.
Page 1 of 1
City of Kalispell
Post Office Box 1997 - Kalispell, Montana. 59903
Telephone: (406) 758-7701 Fax: (406) 758-7758
MONTANA
MEMORANDUM
To: Mayor Johnson and City Council
From: Doug Russell, City Manager
Re: Legislative priorities
Meeting Date: October 24, 2016
BACKGROUND: In preparation of the upcoming legislation session, this agenda item is
intended to revisit the legislative priorities of the City Council. Establishing priorities aids in
approaching legislators on the desires of the city and also provides guidance in responding to
proposed legislation during the session. Attached to this document are the legislative priorities
from the previous session.
At a previous meeting, discussion was held regarding efforts of other cities (such as lobbyists
and the Montana Infrastructure Coalition), and the League of Cities as to their focus during the
upcoming session. As such, I have included the brochure from the Montana Infrastructure
Coalition whose mission is to "provide an inclusive, non -partisan forum for the objective
research and development of sustainable funding solutions for Montana's most pressing
infrastructure needs." Partnering with the Infrastructure Coalition may be beneficial as their
mission coincides with our previous priority of seeking legislation to fund infrastructure needs.
Additionally, I am including the adopted resolutions from the Montana League of Cities for the
upcoming legislative session (note that it appears that some resolutions are missing. This is
because the resolutions are numbered at the beginning of the approval process and don't get
renumbered when some resolutions are removed from consideration). Several of the resolutions
adopted are related to our previously established priorities, specifically:
#'s 2, 3, 5, 6, 12, and 17 which deal with revenue in some fashion
94 which addresses opposition to limiting Tax Increment Financing
97 which addresses environmental regulations related to Storm Water
RECOMMENDATION: It is recommended that the City Council discuss and provide direction
related to updating our legislative priorities and if we desire to partner with other cities or
agencies in legislative efforts related to the upcoming session.
ATTACHMENTS:
2014 Legislative Priorities
Montana Infrastructure Coalition Brochure
Montane League of Cities and Towns Legislative Resolutions
City of Kalispell
Montana Legislative Priorities
April 2014
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 Option Sales Tax: 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 existing or more expansive 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 of the 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 will provide long term
consistency for municipalities, developers, and builders within the impact fee regulations.
- Environmental Quality: The City of Kalispell supports legislation that would mitigate the
economic impacts of the unfunded liability caused by increased regulatory standards on
municipal operations such as water production and wastewater treatment.
C C
ro O
C U N
O a) c _
N O n .0C C C
o c u Y O® m C D 8
O_ c
a) c >• L O_ i i v C p o p o U
z m v o v E t on a 6i E U o E '�-i 3 Q 3 'o .2
c c c°i o
° v E U E E c°i on Q c Y E c o7f w E o v iam) " c o a v
Z U N U O_ O a) O p >• O �- ro >• Y C >• C v a)) U N U ro O U Q c Oa 7 0 p O Y a N Q
a� O U Q v 3 v E `n v c �' 3 v c v c c 2cL
l7 o 00 m Y a io 3 v v o- c°'i
>° o° a� = ) N o m a o U c o Q °c° 'on ° u Q =_ c L O c E c c� o f in v o 3 0
W v m E v v> F� E m U 2 in c m U O w p w a`� c E fo O v U x v m 3 o v o c L a c p o C7
m e cai o m o" t p° o Q o o> m x m E E Y E °c m o u E` a o° o E o v o c o
on > m m m o o z > Y Y v 3 J v Y t L o c c o m t c v c ,'° m E L� t v N Y
w c v> a t t m i� m o i _ w o O u E Fo �a a o U_ a c �+
C w o U U U a' U U O w N U U o ,n ro U U o c v U° U c o ,n
G E o v o a— a o o a c o o c a a a o
O• Y C bND m C LL a) C °" 7U N io N° C t6 N N O 1n
j ci N m m° c V' o- � O N o o C C C w o m C� > v 7
O o oQ °° >°° v v YY � m o���� o� ov)
U
c� ) m �� o o
°i m p
o a) >
E a
Q
uw:-�• i
, 11 14 �. O
M= w .v a) M U •� 0 O O
U O z a) c O �O O
E O + a) u }
O o w_ Q Q Q
O O a- a1 0 O a-•� �. a1
ate+ t -+ Q L (6 C cr
-0 W +- O L
O L L O O O
O
(n (d O U O �} 7 L C
4— A L L
O (6 N ^ i lD O t�if O S 4-
CL U
'" v w Q " °�° �
E
O E O ,� o cu iCL
v Q" on
1 0 o 0
i w a1 C L a) w a-'
O O ZA O L E u 7 t
O N— c o v v v o w Eno
U Q> v — a 3 v
v L L vv, o +^, j,
an ta) to �s kn
p O ' c
cao O U on (p C t w ns O a1 a1
0 (n w a-.� Q L do o a —
a)
co
_'
(p
C
U
+,
C
O
U
-
a
�
O
L
n
(O
Q O
U)cc
C
C
C
Un
a)
0
Ln
O
V
N
Q
io
z
c
+
+
4-1
z p
p
U U
U
U
U
m
c
2
2
o ro
°�-
O
v
v
v-0-0
L
°
v L v
°
-0
tin
t +�
°
++
+, 4-
a
f6 O
U
4- co
•N
°
(a U
(D
-0
U
O
N
n U
U
L
'i
Q
°
0
U
0
-0 .�
L
o
Q �
L
+�
° Q
O
O
'L
On
a '^
f6
N
+'
°° O
°
V1
°
c
O
°
L
v
a
N
L
C
N
v
t
+�
.c U
v
cu
(�
i
N i1 •c
4-
c
L
O
O Q
N N
c
°
(6 L
t
O
Q
E O N
m
+�
a
v�
. •
N
O
>
. N (n
O
N (,
N c
0
O
.
N
N
q°A
Q
p
v
v
ra•
o an•+-
vL �
oN
r
c
C
ta
(n
Uo >+
(n
c
o
•-
� -
(U E
O
OD>,
c
°
°
c
NO a)
O
OD
OD
4-a,
Ekn
0o
°
C
Ln
Z ° 7 o
c
c
c
n
(d
3 N O
(6 U c
OU
-a E
L
(UP`
c
+�
k
t N
L
O
N
° L a-
>-
1
O Nc
(u
-0
C
(U+�
i
4-L
O D
a•+
a-+
L
L C
7 O
O
p
+'
c t C Q
O 3 :Ec
(A
r6
L
�
U
(O
C,
>
kn
co O
O c 4-
O
L
.�
+�
+� c
ca
'�
n
p
U
to c L
.� ° O N
U
on
O
L
c
C �
u dA v�
•-
N •U
c
c t6
7 U
c� +�
•M
vOi
.�
n
O
N
in _
? i
c
N
N N
l0
N
M�
0
H U .�
Q°
t 7
H Q
N (6
m a
�
m O
t
H
(O O
Q U 4- E
a
s
.�
N •
acn
�
O�
O
O c
.� �'
�
Bu
•f0
v
oC
0
0
0
o
4-
v
O
O
v
°
on
L
N
N
C
L
L
In
O
N
on
`�
c
a-•�
++
c
v�
U
cr
N
O
N
co
L
O
a+
7
N
.°
E
N
++
(O
ON
O
N
N
'n
c
Q
4- N
L
N
++
(6
dA
O
n
U
c
O
L
Q
N
c
°
c
U N
>
O
U
L
c
O
U
Q
L
N
t
++
to
f0
c
O
>
c
N
c
'0
4-
O
,
c
"
a)
E4-
°
M
p
a-
(n
(n
N
u
c
O
ate-+
L
ti0
O
N
(O
N
Q
v�
c
N
-
O
u
Q
°�
a
-
aU-
-
O
OA
U
N
U
•-
o
u
p
L
O
O
t
N
N
L
L
bA
N
O
Q
p
}
+
(6
L
a+
f0
Q
f0
C
O
L
N
U
•�
+�
c=
fd
U
0
(N6
4-
0
of
O U
i
--
p
Q
N
(n
co
O
c6
to
-a
4,
t
O
O
lD
•O
O
°
4-1
+,
O
N
L
(n
p
c
U
N
(0
co
L
�
O
4-v
L
U
f0
E
Q
O
O
N
cu
c
v-a
OL°
N
Vf kn
C
�
(6
f6
O
7
N
>
i
0
L
N
L
N
}•
N
N
O
c
OU
O
u
O
c
00 OD
_
°
ate+
f6
7
-_
f0
U
O
L
L
Qi
a-•�
+- a)L
c L
4-O
a-+
(B
(d
a-•�
4-
03
O
n
cp
O
�
�
OA
°
(�6
°C
dA
U
c
m
U
o
c
L
4-L
N
O
0
L
>
o°
c
E
ai
O
ai
c
ai
O
O
co
v
O
m
0
2
u°°
•�
�
v�
�°
4-
-
a
.E
a,
a
E
w
.E
m
�
z°
c>
v .�
Resolution #2016-1
GENERAL PRINCIPLES
BACKGROUND
The cities and towns of Montana provide a healthy community with clean water, a sanitary
environment, public safety, transportation, and recreational opportunities. These vibrant
municipalities provide a safe and inviting environment that fosters the primary basis for the
Montana economy. To provide quality municipal services to their residents and visitors,
municipalities must wisely and efficiently use their limited financial resources. The League of
Cities and Towns is committed to preserving and promoting these municipal qualities.
ACTION
For the 2017 Legislative Session, the League will stand by the following principles of fair,
affordable and effective local government:
1. Preservation of an equitable property taxation system and the entitlement share
payment to municipalities, while pursuing authority for municipalities to seek and
develop new sources of revenue to fund essential local services.
2. Promote diversification of the local government finance structure, particularly to
develop supplements and alternatives to property tax revenue.
3. Encourage the maintenance and expansion of state grant, loan and investment
programs to fund infrastructure capital improvements to supplement the use of local
funds.
4. Advocate that new legal mandates imposed upon municipalities have an identified
source of independent funding and are not an unfunded mandate imposed upon
municipalities.
5. Effective planning and development policies that encourages managed growth of
municipalities for the promotion of the more efficient delivery of clean water, treatment
and disposal of wastewater and solid waste, protect municipal water rights,
interconnectivity of transportation systems, enhanced fire, police and public safety
protection, improved recreation opportunities and other municipal services.
6. Opposition to any measure that limits or diminishes municipal authority as provided by
the letter and spirit of the Local Government Article of the 1972 Montana Constitution.
7. Recognition of the contribution of cities and towns to the history and culture of our
state and a better understanding of the fact that all public policy should begin and end
with those special places a majority of Montanans call home.
7-Oct-16
Resolution #2016-2
ENTITLEMENT SHARE PROGRAM
BACKGROUND
Section 15-1-121, MCA, contains the formula for calculating the annual growth factor that is
applied to Entitlement Share Payments. The Legislative changes in 2011 based the growth factor
on the collection of gambling, motor vehicle, beer, liquor and financial institutions tax revenues
over the most recent three-year period. It also includes a factor for personal and corporate
income tax collections.
During the 2013 Session, the Legislature amended 15-1-121, MCA, to provide that entitlement
payments are intended to provide a secure and predictable stream of revenue with a growth
adjustment tied to state collections but cannot go below a floor of zero.
Because the entitlement share payment funds have had healthy growth and provide increased
payments to the local governments, there is a temptation to use part of these funds for state
needs. Any diversion of entitlement share payment funds would diminish the future growth
capacity of the fund and deprive local governments of the funds historically promised.
ACTION
The League will oppose legislation to diminish the Entitlement Share Payments program to
ensure its continuation and application of growth factor adjustments.
7-Oct-16
Resolution #2016-3
REMOVING CAP ON INCREASES IN MILL LEVY
BACKGROUND
Cities and towns are only authorized to impose a mill levy that is sufficient to generate the
amount of property taxes actually assessed in the prior year plus one-half of the average rate of
inflation for the prior 3 years. Cities and towns cannot financially survive with this limitation on
the mill levy to one-half of a rolling 3 year average of the rate of inflation. Expenses incurred by
cities and towns are not limited to any similar cap.
ACTION
The League will strategically sponsor legislation to remove the restrictions on the cities' and
towns' mill levy authority currently imposed under Title 15, chapter 10, part 4, MCA.
7-Oct-16
Resolution #2014-4
LAND USE AND ENVIRONMENTAL REGULATION
BACKGROUND
Cities and towns have worked many years to protect Montana's land and water resources through
wise community development policies that emphasize centralized water and wastewater systems,
efficient delivery of services to concentrated populations and compliance with fair and affordable
environmental standards. Now, most new development in Montana is sprawling beyond
municipal boundaries, threatening our legacy of open space and clean water. Municipalities are
dedicated to working with state and federal agencies to establish growth and land use policies
that recognize property rights while preserving the natural assets of Montana.
ACTION
MLCT will support bills to:
1. Encourage the use of community water, wastewater and stormwater systems to
protect environmental quality and assure that cities and towns are not obligated for a
disproportionate share of the cost of complying with Numeric Nutrient Standards,
MS4 and other state or federal regulatory standards.
2. Promote environmentally responsible energy development and conservation through
grants, loans, and technical assistance and education programs.
3. Allow cities and towns authority under the energy and building codes to promote
conservation.
4. Expand authority of cities and towns to use tax increment districts and tax abatements
for opportunities as part of an effective economic development strategy.
MLCT will oppose bills to:
Restrict the annexation, zoning, planning and subdivision review authority of cities
and towns or in any other way interfere with established community development
practices.
2. Restrict the use of Special Districts but will consider measures to simplify protest
procedures for property owners.
3. Limit the effectiveness of the options under the tax increment district statutes but will
consider measures that refines definition of "public purpose" for expenditure
limitation purposes.
7-Oct-16
Resolution #2016-5
LOCAL GOVERNMENT INFRASTRUCTURE GRANT PROGRAM
BACKGROUND
Montana has experienced significant growth impacts related to infrastructure and public safety as
a result of rapid population growth in some part of the state. Most Montanans welcome the
economic opportunities connected to development, but some Montana municipalities that have
had no or slow growth in the past do not have the resources and support necessary to proactively
plan for and address the infrastructure and public safety needs of the growing population. Also,
the infrastructure belonging to Montana municipalities, water and wastewater systems, streets
and public facilities, is aging and in many cases has outlived its useful and functional life. For
Montana cities and towns to attract healthy, responsible economic growth, the ability to provide
quality essential services means the infrastructure should be in good condition and using modern
technology.
The MLCT has joined the Montana Infrastructure Coalition ("MIC") and will work with the MIC
to establish infrastructure priorities on a multi -session approach. We need to work to change the
structure of the way infrastructure financing occurs in Montana on into the future.
In 2015, a bipartisan bill to provide funding for state-wide infrastructure, including
municipalities, narrowly failed passage by one vote. The infrastructure bill would have funded
local projects through grants and loans as well as university buildings and other state projects.
Much of the public infrastructure, whether owned by the state or local governments, suffers from
deferred maintenance and every year worsens the deterioration of the infrastructure. An
infrastructure grant or loan program will provide Montana communities with additional
resources and support to help plan and address needed infrastructure expansion and replacement
and the public safety needs of municipalities.
ACTION
MLCT will support and promote a local governmental infrastructure grant and loan program,
including public safety infrastructure.
7-Oct-16
Resolution #2016-6
GASOLINE AND SPECIAL FUEL TAX AND LOCAL OPTION MOTOR FUEL
EXCISE TAX
BACKGROUND
The gasoline and special fuel tax is a state tax of 27 cents per gallon of gasoline distributed
within the state and 27 3/4 cents per gallon of special fuel. (Section 15-70-403, MCA.) Of the total
amount collected from these and other gas taxes, $16,766,000 is statutorily appropriated to
counties, incorporated municipalities and consolidated city -county governments for construction,
maintenance and reconstruction of roads and streets in each entity. (Section 15-70-101, MCA)
The amount of these taxes that are retained by the State can be used for the State's match for
federal highway funding. The vast majority of highways, streets and roads in Montana are
suffering from decay and in need of major maintenance, reconstruction or replacement.
Increasing the Gasoline and Special Fuel Tax would generate additional money for the State to
use as match for federal highway funding and provide additional money to municipalities,
consolidated city -county governments and counties.
In addition to the allocation of gasoline and special fuel tax money to counties, municipalities
and consolidated city -county governments, a county through the vote of electorate may imposed
a local option motor fuel excise tax. (Section 7-14-301, MCA.) This additional tax may not
exceed 2 cents per gallon. The revenue from this local option motor fuel tax is allocated between
the county and all municipalities within the county according to a distribution formula. This local
option fuel tax can only be initiated by the county. Municipalities cannot independently impose
any local option motor fuel excise tax. The revenue from the local option motor fuel tax can only
be used construction, reconstruction, maintenance, and repair of public streets and roads.
(Section 7-14-302, MCA)
ACTION
MLCT will support:
1. Increasing the gasoline and special fuel tax to provide additional revenue for match with
the federal highway funding and for additional revenue for municipalities, consolidated
city -county entities and counties.
2. Allowing municipalities the independent authority to impose a local option motor fuel
excise tax within their respective jurisdictions.
7-Oct-16
Resolution #2016-7
MS4 AND STORMWATER QUALITY
BACKGROUND
More cities in Montana are being classified as Municipal Separate Storm Sewer ("MS4") cities
for purposes of storm water regulations under EPA and MTDEQ. Under the federal law, MS4
cities are required to use best management practices to reduce pollution from storm water runoff.
MTDEQ is responsible for issuing general permits to the MS4 cities. In past years MTDEQ was
more aggressive than the EPA BMP standards and required additional burdens such as
monitoring and sampling of water quality in storm water runoff. Though this initially only
affected the larger Montana cities, the history of the MS4 designation has been to reach down
into lower populated cities. Originally in 1990, only cities with populations over 100,000 were
affected. By 1999, it potentially affected municipalities with 1,000 people or more. The MLCT
and affected cities agree with protecting water quality and using BMPs for storm water
management. What we do not agree with is having to do sampling and monitoring that is of no
benefit. Sampling for the sake of sampling is an idle act.
The concern is that MTDEQ may interpret "state waters" (75-5-104(34), MCA) to include storm
water retention and detention ponds, which are the BMP's means for trapping pollutants before
reaching bona fide state waters. This interpretation would require retention and detention ponds,
constructed as BMPs for storm water, to have water quality compliance similar to lakes and
rivers.
Such an interpretation has resulted in difficulties conducting water main flushing, fire hydrant
testing, water main repair and maintenance (non -storm water discharges). That interpretation
combined with the first 1/2" treatment requirement in the current discharge permit has also raised
questions about whether it is permissible for storm water leaving a site to enter the MS4 at all,
and thus detention or retention ponds and basins, before the first 1/2" of water is treated.
MTDEQ has established working groups with the MS4 cities to reach a mutually satisfactory
resolution on these issues. This process is still on -going and will take more time and work to
resolve the differences.
ACTION
MLCT extends its appreciation to MTDEQ for its efforts having a working group to work toward
resolution of BMP requirements for mitigation for storm water quality. The MLCT will consult
with and work with DEQ if legislative changes may be needed for effective implementation of
BMPs in a cost-effective and reasonable manner. The MLCT will monitor legislation and
regulatory action dealing with storm water quality and MS4 regulations.
7-Oct-16
Resolution #2016-8
FUNDING FIREFIGHTERS' PENSION FUND
BACKGROUND
Under 19-18-503, MCA, cities and towns are required to soundly fund disability and pension
funds for firefighters. The fund is deemed soundly funded if either the assets in the fund are at
least 0.21 % but not more than 0.52% of total assessed value of taxable property, or at a value
determined by an actuarial valuation. The cities and towns are allowed to levy an annual tax to
keep the fund soundly funded under 19-18-504, MCA; however, that special tax levy is restricted
by the mill caps in 15-10-420, MCA, of of the average rate of inflation for the prior 3 years.
The current funding requirement based upon a percentage of total assessed value of taxable
property can result in requiring a municipality to have to increase taxes to an unrealistic,
unnecessary and expensive amount in order to adequately fund a reserve for disability and
pensions for firefighters. This was especially exacerbated by major changes during the 2015
Session in the property tax assessment laws that reduced taxable valuation but did not affect the
total assessed value. These changes made the percentages of total assessed value arbitrary with
no precise nexus to the actual liability exposure. In some cases municipalities were legally
unable to levy an amount equal to 0.21 % of total assessed value and to do so would
unnecessarily overfunded the disability and pension reserve. The Montana Department of
Revenue is drafting legislation that would make the funding requirement for a disability and
pension fund reserve be 3 to 5 times the actual liability. Using this formula would set the reserve
fund at a realistic amount based upon liability of the fund.
ACTION
MLCT will sponsor legislation that changes the funding requirement for disability and pension
fund reserves to be a realistic multiplier of actual liability exposure.
7-Oct-16
Resolution #2016-9
COMPENSATION FOR RETIREMENT
BACKGROUND
The public employee retirement system has suffered in the past from not being actuarially sound.
Some public employee bargaining groups want to include factors such as overtime, insurance
premium payments and other special benefits as part of the "total compensation' used in
determining retirement benefits upon retirement. Adding these other types of economic benefits
as compensation for retirement purposes increases the cost to the public employer for paying the
employer portion of the retirement withholding.
Additionally, adding new peripheral benefit amounts to total compensation puts a strain on the
public retirement system since the more recent retirees will not have contributed toward the
higher benefit for most of their careers.
ACTION
The League will oppose legislation adding employee benefits and overtime as part of the
compensation for purposes of determining retirement benefits.
7-Oct-16
Resolution #2016-12
LOCAL LODGING FEE
BACKGROUND
Some cities and towns experience unexpected demands for increased municipal services.
Especially when these impacts are unpredicted, the impacted municipality cannot immediately
afford the increased costs to enlarge their infrastructure and provide for expanding municipal
services. New growth eventually generates increased property tax revenue but it is not
immediate and impacted municipalities need a quicker means for new revenue. A local lodging
fee based upon overnight lodging facilities, temporary housing and campgrounds would fill that
need for more readily available extra revenue.
ACTION
MLCT will support a locally created and imposed lodging fee on consumers for overnight
lodging, temporary housing and campgrounds.
7-Oct-16
Resolution #2016-14
ABANDONED PROPERTY
BACKGROUND
Local law enforcement agencies, police and sheriff departments, receive personal property that is
evidence in criminal cases, has been abandoned by the owner or is recovered stolen property that
the owner fails to claim. Since 1997 Montana does not have a statutory process for disposal of
abandoned personal property that is being held by law enforcement agencies for the owners to
claim but who fail to do so. Many police departments store bicycles and other found or recovered
property that must be held presumably until the true owner comes to claim it. There is no
statutory standard of when this property may be presumed to be abandoned and the local
government entity may dispose of the property either through sale, donation to charitable cause
or destruction. Local governments need to have legal clarity and authority for the disposition of
abandoned property.
ACTION
MLCT will sponsor legislation creating a presumptive abandonment time period and establishing
a process for the disposal of personal property local governments are holding as unclaimed
property for the owners.
7-Oct-16
Resolution #2016-15
LOCAL GOVERNMENT STANDING COMMITTEE
BACKGROUND
With the passage of SB 11 in 2009, the Legislature created six permanent interim committees,
each responsible for the administrative rule review, program review, and monitoring for specific
executive branch agencies. (Section 5-5-202(2), MCA.) Although local government was not
specifically identified as a subject matter for any of the six new interim committees, two interim
studies dealt specifically with local government issues: HJR 29 (a review of state laws pertaining
to local governments and officials); and HJR 38 ( a study of salary and employment issues of
juvenile probation officers. The Legislative Services Division assigned these interim studies to
the Education Interim Committee, and in the 2001 session, the Legislature amended the statutes
to reflect the dual education and local government role of the committee. (Chapter 210, Laws
2001; Section 5-5-224(2). The two divergent subject matters covered by the Education and Local
Government Interim Committee has made it difficult to create long-term collaborative
relationships between the state and local governments envisioned by the originating statute. The
breadth and complexity of local government issues warrants the creation of a separate and
permanent interim committee dedicated solely to discussing and coordinating local government
issues.
ACTION
MLCT will sponsor legislation creating a separate and permanent local government interim
committee to study local government issues.
7-Oct-16
Resolution #2016-16
RECOUP LAW ENFORCEMENT TRAINING -RELATED EXPENSES
BACKGROUND
In 1999, the Legislature passed HB 192, codified at Section 7-32-4139, MCA, which authorized
prorated reimbursement of training costs if minimum 3 year service agreement not fulfilled. The
statute defined "training costs" as including the "cost of the officer's basic course training,
salary, mileage, and expenses paid to the officer while the officer is in training."
In 2005, in response to a bill request to provide similar language for counties, the Legislature
repealed Section 7-32-4139, MCA (Chapter 198, Laws 2005 (HB 743)) and replaced it with new
language in Section 7-1-4105, MCA that acknowledged local governments' constitutional
contract authority to enter into any contract necessary for the exercise of its power, "including
but not limited to a contract for reimbursement that may require that the local government be
reimbursed for the cost of basic course training if an employee leaves employment before
completing a reasonable period of service. While HB 743 specifically identified the cost of basic
course training, that cost is illustrative and the preamble and other language of the bill supports
the broad constitutional authority of cities to include other costs in an agreement for
reimbursement.
The constitutional contract authority granted to cities is not absolute. A municipality must
comply with state and federal employment and wages laws, which include the requirement to
pay the applicable minimum hourly wage, overtime compensation, and withhold applicable
taxes, as well as employer contributions to unemployment insurance and worker's compensation
coverage. Subject to the requirement of collective bargaining (City of Lewistown v. Lloyd, 2006
MT 168), a municipality may be able to recoup actual academy training expenses, wages in
excess of the applicable minimum wage, taxes paid on those excess wages, health insurance
premiums, retirement benefits, and travel expenses when a police officer fails to complete an
agreed upon length of employment with the municipality.
ACTION
MLCT will create a template reimbursement document for municipalities to use in collective
bargaining in order to recoup the maximum lawful amount possible of training -related expenses
when an officer does not complete minimum employment periods.
7-Oct-16
Resolution #2016-17
LOCAL OPTION TAX
BACKGROUND
Municipal fiscal authority in Montana is limited to property taxes, with a small exception for
certain smaller communities with a population of less than 5,500 where the majority of local
employment is related to businesses catering to the recreational and personal needs of tourist
visitors. The existing state resort tax statute imposes strict limitations on local resort taxes: the
tax must be approved by the qualified electors of the municipality; the tax rate ceiling is 3%; the
tax may only be imposed on lodging facilities, restaurants, and bars; and no less than 5% of the
revenues received from the tax must be used to reduce property taxes within the municipality.
Currently, only four municipalities in Montana qualify under the statutory definition of "resort
community" and have enacted a resort tax approved by their voters (Whitefish, Red Lodge,
Virginia City, and West Yellowstone). These communities have access to an additional source of
funding for "any activity, undertaking, or administrative service that the municipality is
authorized by law to perform," including infrastructure, public services, and the like. The resort
tax provides an additional flexible source of revenue that allows local residents to decide locally
whether to impose additional taxes on luxury items and local business services that serve
primarily visiting tourists.
ACTION
The League will support legislation to allow all Montana municipalities and their voters the
authority to enact a local option tax to help fund local infrastructure projects and other local
services.
7-Oct-16
Resolution #2016-18
CLOSURE OF COLSTRIP UNITS 1 AND 2
BACKGROUND
With the pending closure of Colstrip Units 1 and 2, the City of Colstrip is facing an abrupt loss in
local jobs and property taxes. The closure of Colstrip Units I and 2 requires planning and
funding to safely decommission the units, address the needs of Montana and out-of-state energy
consumers, and help displaced workers and the communities directly impacted by the closure of
the units. The MLCT recognizes the important role the City of Colstrip has historically played in
providing energy and revenue to the entire state.
ACTION
The MLCT supports efforts to provide financial support and economic diversification to the City
of Colstrip to help create sustainable employment opportunities and protect local tax revenues as
a result of the closure of Colstrip Units 1 and 2.
7-Oct-16
Resolution #2016-20
SUPPORT FOR PUBLIC SAFETY EMPLOYEES AND RESOURCES
BACKGROUND
Montana cities and towns provide critical public safety services to the majority of Montana
residents. Emergency response, law enforcement, and fire protection are an important component
to creating and maintaining thriving, prosperous communities. The Montana League of Cities
and Towns (MLCT) supports efforts to ensure public safety personnel, services, equipment, and
programs are adequately funded and the work of these local government employees is
acknowledged and respected by their elected officials and citizens.
ACTION
The MLCT acknowledges the need for adequate equipment, training, and funding for municipal
emergency response, law enforcement, and fire protection services, and expresses its
appreciation for the work of our local police officers, firefighters, emergency responders, and
other public safety employees.
7-Oct-16
Resolution #2016-21
SUPPORT FOR MILITARY OPERATIONS IN MONTANA
BACKGROUND
Federal military operations in Montana are a critical source of economic health in our
communities. The Montana National Guard provides more than $182 million in economic
impetus to the State of Montana, and the total federal economic impetus of the Montana
Department of Military Affairs and the National Guard to the State of Montana is over $196
million. Malmstrom Air Force Base provides more than $610 million in economic impetus to the
State of Montana, airmen stationed at Malmstrom own an estimated 1,116 homes in Montana,
military construction and service contracts provide more than $34 million to local contractors,
the base spends more than $10.4 million for utilities, and Malmstrom services more than 7,000
miles of roads in Montana, which benefits Montana's commerce. Some other military assets in
Montana include Fort Harrison, Limestone Training Range, Hayes Military Operations Area,
Malmstrom Air Force Base, Powder River Training Range and various Montana Army and Air
National Guard units. From defense contracts, mutual aid agreements, to the revenue generated
by servicing military personnel, Montana's military has tremendous statewide impact.
Federal base realignment and closure activities and other cost-cutting measures put
current military missions and assets in Montana and Montana's economic well-being at risk. In
addition, Montana communities are missing strategic opportunities for defense industry growth
statewide.
ACTION
The MLCT will support efforts to help protect existing military assets in Montana,
collaboratively address national cuts to any military assets in Montana, and develop
opportunities for defense industry growth.
7-Oct-16