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Res 52-92 Void VOID - No Action/5-26-92 RESOLUTION NO. 52-92 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, SUPPORTING A STATE CONSTITUTIONAL AMENDMENT WHICH PROVIDES FOR VOTER CONTROL OF CITY TAXES. WHEREAS, the tax sources of cities are strictly regulated and limited by the state Constitution and/or the state Legislature; and, WHEREAS, the Legislature has required cities to implement and comply with inequitable property tax procedures, to operate with narrow and restrictive tax sources, and to suffer increasingly inequitable formula allocations of state shared revenues; and, WHEREAS, the severe financial problems facing Florida's city governments are well documented and remain unchallenged; and, WHEREAS, the Florida Taxation and Budget Reform Commission studies show that cities have exhausted most of their discretionary taxing capacity and will be confronted with substantial financial shortfalls during this decade; and, WHEREAS, the cities of Florida have consistently and diligently sought expanded and flexible taxing capacity from the Florida Legislature without success; and, WHEREAS, federally shared dollars with cities have all but disappeared and remain a low national priority; and, WHEREAS, previous decades have provided major shifts for program costs from the federal and state to city governments through innumerable unfunded mandates; and, WHEREAS, cities' citizens should be provided an opportunity to evaluate and implement the tax sources most appropriate to their community needs; and, WHEREAS, many citizens believe they no longer can influence public decisions and believe the political process deprives them of strength and influence; and, WHEREAS, most citizens believe they should have a direct say in how they are taxed; and, WHEREAS, this is an appropriate time to review the unlimited power of the Legislature to authorize and control all municipal taxing policy and carefully consider returning taxing authority to the voters of the cities. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That the City of Delray Beach will support a Constitutional amendment that would provide for each city government to secure the taxing powers their voters authorize by allowing city officials to design an ongoing tax structure that is compatible with their individual community goals and place it on the ballot for their voters to express their preference for the existing tax structure or this new proposed tax structure. Section 2. That the City of Delray Beach will work with all cities in Florida and the Florida League of Cities to ensure that this Constitutional amendment is placed on the general election ballot in November of 1992. VOID - No Action/5-26-92 VOID - No Action/5-26-92 Section 3. That copies of this resolution be sent to all members of our legislative delegation. PASSED AND ADOPTED in regular session on this the day of , 1992. MAYOR ATTEST: City Clerk · - 2 - Res. No. 52-92 MEMORANDUM TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER~'~/LQ SUBJECT: AGENDA ITEM # ~ - MEETING OF MAY 26, 1992 CONSIDERATION OF RESOLUTION NO. 52-92/VOTER CONTROL OF CITY TAXES DATE: MAY 22, 1992 At the May 12th regular meeting, the Commission was asked to consider adopting Resolution No. 52-92 supporting a state Constitutional amendment that would allow each city government to design a tax structure compatible with their individual community goals and place it on the ballot. Voters could then choose between the existing tax structure or this new proposed tax structure. After discussion, the Commission voted to defer action and directed staff to obtain additional information, including any examples of tax structures designed by other cities based on the premise of fiscal home rule. We contacted the Florida League of Cities in this regard, but were unable to obtain specific examples of independent municipal tax structures. It is my understanding that the League is in the process of preparing this type of information, although it will not be available for a month or so. In addition to the information previously provided, attached for your review is a copy of the House Joint Resolution which proposes the Constitutional amendment that would allow, with certain exceptions, cities to design their own tax structure with approval by their voters, along with two more articles from Quality Cities magazine which may help to answer some of your questions. The only action requested of the Commission at this time is to consider the adoption of Resolution No. 52-92. The resolution simply supports placing the question of a Constitutional amendment to allow voter control of city taxes on the November 1992 ballot so that the voters can make the decision. Recommend consideration of Resolution No. 52-92 supporting a state Constitutional amendment which provides for voter control of city taxes. RESOLUTION NO. 52-92 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, SUPPORTING A STATE CONSTITUTIONAL AMENDMENT WHICH PROVIDES FOR VOTER CONTROL OF CITY TAXES. WHEREAS, the tax sources of cities are strictly regulated and limited by the state Constitution and/or the state Legislature; and, WHEREAS, the Legislature has required cities to implement and comply with inequitable property tax procedures, to operate with narrow and restrictive tax sources, and to suffer increasingly inequitable formula allocations of state shared revenues; and, WHEREAS, the severe financial problems facing Florida's city governments are well documented and remain unchallenged; and, WHEREAS, the Florida Taxation and Budget Reform Commission studies show that cities have exhausted most of their discretionary taxing capacity and will be confronted with substantial financial shortfalls during this decade; and, WHEREAS, the cities of Florida have consistently and diligently sought expanded and flexible taxing capacity from the Florida Legislature without success; and, WHEREAS, federally shared dollars with cities have all but disappeared and remain a low national priority; and, WHEREAS, previous decades have provided major shifts for program costs from the federal and state to city governments through innumerable unfunded mandates; and, WHEREAS, cities' citizens should be provided an opportunity to evaluate and implement the tax sources most appropriate to their community needs; and, WHEREAS, many citizens believe they no longer can influence public decisions and believe the political process deprives them of strength and influence; and, WHEREAS, most citizens believe they should have a direct say in how they are taxed; and, WHEREAS, this is an appropriate time to review the unlimited power of the Legislature to authorize and control all municipal taxing policy and carefully consider returning taxing authority to the voters of the cities. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That the City of Delray Beach will support a Constitutional amendment that would provide for each city government to secure the taxing powers their voters authorize by allowing city officials to design an ongoing tax structure that is compatible with their individual community goals and place it on the ballot for their voters to express their preference for the existing tax structure or this new proposed tax structure. Section 2. That the City of Delray Beach will work with all cities in Florida and the Florida League of Cities to ensure that this Constitutional amendment is placed on the general election ballot in November of 1992. Section 3. That copies of this resolution be sent to all members of our legislative delegation. PASSED AND ADOPTED in regular session on this the day of , 1992. MAYOR ATTEST: City Clerk - 2 - Res. No. 52-92 House Joint Resolution No. A joint resolution proposing the amendment of Section 9, of Article VII, of the State Constitution, to authorize munidpalities to levy certain taxes to enable them to conduct munidpal government, perform munidpal functions, and render municipal services, provided such taxing authority is approved by a majority o£ the municipality's electors voting in a referendum. BE FI' RESOLVED BY THE r.~.GISLATURE OF THE STATE OF FLORIDA. That the addition of Subsection (c) of Article VII of the State Constitution set £~)rth below is agreed to and shall be submitted to the electors of Florida for approval or rejection at the general election to be held in November 1992. ARTICLE VII FINANCE AND TAXATION SECTION 9. Local taxes. - (c)... In additional tO any tax ...otherwise authorized .by general law, and notwithstanding an), limitation on taxation otherwise provided in Articles VII and munidpalities shall..have the power to levy..taxes, and provide for exemptions therefrom, in the manner provided in :.this subsection, to enable them to conduct munidpal government, perform munidpal functions and render munidpal services. The governing 4 body of a munidpality may, by ordinance, submit to. the electors of said munidpali _ty a proposed amendment to its charter, w.hich amendment may authorize the municipality .to levy_ taxes and .provide for exemptions therefrom. The governing body of the municipality shall place the proposed amendment contained in the ordinance to a vote of the munidpality's electors at the next general election held within the municipality 0r at a...special election called for such purpose. Upon adoption of the amendment by a majori _ty of the electors voting in a referendum upon such amendment, the governing body'of said municipality shall have the amendment incorporated into the charter and shall file the revised charter with the Department of State. The amendment shall become effective 10 days. following the adoption of the amendment by a majority of the electors voting in a referendum upon such amendment or at such time as is otherwise provided in the proposed amendment contained in the ordinance calling for the referendum. Any tax authorized pursuant to this subsection may be ,.repealed in the same manner as the tax was initially aUthorized. Nothing in this subsection shall authorize a municipality to place a tax upon estates or inheritances or upon the income of natural persons who are residents or citizens of ~e. statet...upon the net income of residents and citizens that. are not natural persons who are residents or citizens of the state~, or. upon the sale of tangible personal property_. Nothing in this subsection shall be construed to repeal any munidpal .taxing authority in effect on the effective date of this subsection. BE 1T FUR~ ~LVED that in accordance with the requirements of section ~01.1~, Florida Statutes, the title and substance of the amendment proPOsed herein shall appear on the ballot as follows: 5 MUNICIPAL TAXING AUTHORITY Authorizes municipalities to levy certain taxes to enable them to conduct municipal government, perform municipal functions and render munidpal services, provided such tax is authorized by a majority of the municipality's electors voting in a referendum. EXPLANATION: This joint resolution is a proposed constitutional amendment that would allow, with certain exceptions, dties to design their own tax structure with approval by their voters. This proposal would amend Section 9 of Article 7 of the state Constitution and would allow municipalities to adopt an ordinance that designed a new tax structure'by ordinance and it would be submitted to the munidpalities voters in the form of a charter amendment. The tax structure could be changed at a future date by following the same procedure. Cities would not be authorized to include in the new tax structure any tax upon estates or inheritance, personal income, net corporate income, or a sales tax on goods. Should the new tax structure not be adopted by the voters, then the existing tax structure would remain. All taxes not specifically excluded would be available for the dries to consider. For example, a city could make changes in the property tax to provide for the abolition of property taxes on homes. 6 Tell Me More About ,'Voter Control of City Taxes to review, update and change ex. ting tax structm-e. No tndi- poml would not allow a change in their tax slructur~ to provide vidual or group could place a state ~ regarding uniform mor~ flexiztllty at the local level proposal cna the ballot except the assessments and uniform m~L~ge for revmue sources. Cta'r~tly, city cotmctl~ adopting an ordi- rat~s. state lav~ provide only tJaree ~ nance. This ~ does not Basically. this proposed con- sourc~ to ail cities and each is aff~ct stat~ .~h~r,xi revenues, mar stltutimaal amendment would do capp~ or ~ Cities ar~ reit- does it affect a city's authority to what city officials have been a.sk- ant on a property tax tlmt over 75 le~ and collect fees. It does not t~g the Leglslature to do for two percent of the public believes is affect trmm paid by people ~r decades, with the added provi- unfair. And. frankly, it is hard to l~,_~nesses to counties, schools, sion of nfferendum approval. ~ put tog~izr a ~ taxm m th~ ~ of tanglbk TI~ proposal tndudes the dates amemtment, this proposal of corpm-ationa {c~pomte profit post-megatrends move by the was bom out of frustration fr~m ta~. public to have a more participa- the Leslsh~'s ~ to Would this create a hodge- t~ democracy. Tim ~ the only deal with funding public services podge of tax $tructurm In d~er- tax proposal that will work and provided to citizem by govern- ~_ cities acres the state? Yes. It generate public support. merits other than'the state, would ~ replace the cur- City officials provide services We call this proposal, a pm- rmt hodge-pod~ with atomizer that are very visible to citizens, Ry In making local tax dettstm~ types of fees. If one lives In Florida, one pays Voter Contrd of City Taxes would This proposal would not dilute taxes to the state, the county and allow Just that with a newly de- the effect of the recently adopted the schools, but one only pay~ th~ Ta:mtlon and Budg~ R~rm th~ homered e:mmpOom ff thru' ~o~_, ~ pmt~ street majority of l:lomla's vota.., ,.~'h tntmded to prov~le autlxxtty for ~ q,,,,"ty of life. Why not let city In the state would be given cities to revlew this aa an overall these people play a direct role In structure and place it before their via'ual tax idea comes along. Fu- are taxed? Some'people might ers approve the new tax struc- the tax structure and place it on the tax structure was fair. ture. it would become law;. if the the banot, and citizens would vote ,~ QUALITY ClTIE~ -- MARCH 1992 Why We Must Have Voter Control of City Taxes by Sbaro~l G. Berria~'l Citizens are disillusioned with what is clearly one of the worst politicians, incumbents, big gov- all levels of government. Not budget crises in history, our citi- eminent, party politics and cor- only have they lost faith in zens continue to become increas- ruption. It is a reaction against a~ their political leaders, they ingly disenchanted with their sys- political system that is perceived have lost faith in the political tern of government. Citizens con- as so autonomous that the public system. Many feel that the sys- tinuaily express the view that they is no longer able to control and rem has failed and that citizens' have lost confidence in their gov- direct it... impervious to public voices are basically ignored. The eminent.., all levels of their gov- directions: a system run by a pro- time has come for an overhaul of eminent. They feel that their gov- fessional political class and con- a system in turmoil. It is the re- ernments, at all levels, are failing trolled by money, not votes. sponsibility of all governments to to be responsive to their needs, What's more, people do not believe consider proposals that will re- and that they have little control this system is able to solve the tore the public's confidence. The and influence over and input into pressing problems they face." 1992 Florida Legislature had a policy decisions that have an In essence, many people are chance to adopt such a proposal, enormous impact on their every- just as mad and disillusioned at However, they refused to seize the day lives, the failed political system as they opportunity. Moreover, citizens aren't just are at any one politician. It's not The Florida League of Cities disgusted--they are absolutely just a system that doesn't work: to offered a proposal of municipal mad. many, it's a system gone bad. fiscal home rule that would have Citizens are mad at the in-fight- All elected officials, including put govemment back in the lng, the scandals, the excesses-- locally elected officials, owe a dutv hands of the people. [t is a solu- but most of all, citizens are just and a responsibility to their con- tion whose time has come. It is a plain mad at being ignored, stituents to seriously consider plan that offers citizens local con- In E.J. Dionne's 1991 book proposals designed to restore their trol of their tax dollars. If given a titled Why Americans Hate Po/it/cs, constituents' confidence in their chance, the people would not only he states that "Over the last three government. The 1992 Legislature embrace the concept, but would decades, the faith of the American failed to meet this challenge when vote overwhelmingly for the pro- people in their democratic institu- it refused to adopt just such a posal, which would give them a tions has declined, and Americans proposal--municipal fiscal home voice in shaping their govern- have begun to doubt their ability rule. The proposal, which was ment. Voter control of city taxes to improve the world through poll- offered by the Florida League of brings us one step closer to re- tics. Voters doubt that elections Cities, but virtually ignored by the pairing a political system gone give them any real control over Legislature, is "Voter Control of bad. what the government does, and City Taxes.' half of them don't bother to cast ballots." Today's Politics... Moreover, in a study prepared Citizens Don't Want A System Gone Bad for theKettering Foundation by to Feel Left Out or the Harwood Group, we are told Ignored As the Florida Legislature that "there is a wide-spread public ~rapples with reapportionment, reaction against the political sys- ~wspaper accounts of lavish tem. This reaction is more than Voter Control of City Taxes is a entertainment by lobbyists and the familiar attacks on individual popular concept. In fact. a poll of FLORIDA LEAGUE OF CITIES 4 600 registered Florida voters that simple one might wonder why government which, in turn, deter- 'as conducted for the Florida this system is not already in mines how they live. ague of Cities by Frederick/ place. Citizens are tired of feeling left 5chneiders, Inc. (FSI) showed that Voter Control of City Taxes is out.., tired of being ignored. A the majority of voters: a proposed constitutional major revolt is right around the 4' reject the current system of amendment that the Florida corner! strict state control over what taxes League of Cities is urging the local governments are allowed to Legislature to put on the Ballot levy: in November 1992. A Callfor Action-- / prefer that programs and It is a proposal that will allow What You Can Do services be provided at the local citizens to take back the author- rather than the state level; and ity to tax themselves. If approved The Florida League of Cities ,/ support the concept of set- in November, this constitutional Board of Directors has asked ting tax policy for cities at the local amendment would remove the every elected and appointed offi- level through a vote by the citi- Legislature's absolute power to cial to personally contact their zens. dictate tax structure and tax legislative delegation to seek their Moreover, Floridians are paro- policy to Florida's 395 cities and immediate and active support for chial. The problems and chal- would transfer that power to the an amendment to Florida's Con- lenges of Tallahassee are not the voters of each individual city. stitution to enact the "Voter Con- same as those in Key West or Mi- City officials would have the trol of City Taxes" proposal. ami or Hypoluxo. Unique circum- authority to design an ongoing The Legislature is currently in stances not only warrant, but de- tax structure that is compatible a series of special sessions to mand, flexibility at the local level with their unique community's adopt reapportionment plans and in structuring revenue sources resources and goals. It would be the 1992-93 state budget. All and the delivery of services. The placed on a citywide ballot. If the local government financial pro- voters know what they wish to voters approved the proposal, it posals have again been ignored. purchase and how they'd like to would become the new tax struc- And according to all indications. pay for it. Now all they need is a ture for the city. If the voters our proposals will probably not system that will allow them to rejected it. the existing tax struc- be addressed or reviewed by the accomplish that result, ture of the city would remain. Legislature for several more Florida voters are clear in their Basically, it would give the city years. In essence, nothing of fi- sire to control their own tax and and its residents the opportunity nancial substance will occur for oudget destinies at the municipal to pick between the tax structure municipal governments in the level, that was designed by the state near future. That is why we must The FSI poll showed that 80 Legislature and a tax structure take up the call for action and percent of Florida citizens said designed by their city leaders, insist that this issue be placed on they favor "changing the law so With only a few exemptions, the the ballot this November. Timing that voters get to decide by major- tax structure could be as innova- is critical because of the antici- ity vote which taxes city govern- tive as your imagination. A city pated actions of the Taxation and ments will impose or abolish"; 93 might, for example, propose an Budget Reform Commission and percent agreed with the statement increase in the occupational ii- the fact that any other ballot pro- "voters should have a direct say cense tax and eliminate property posals must wait until the next over how they are taxed." taxes on homesteads. The pro- statewide elections, which will not As the fiscal resources at the posal is designed so it will not occur until 1994. state level become more scarce jeopardize the state's major tax The Taxation and Budget Re- and the demands for services be- revenues, form Commission will have the comes greater, Florida has out- Why is this proposal so very opportunity to place directly on grown the failed, paternalistic important? Because, if put on the ballot those constitutional system of central government reg- the ballot it would be: (1) the only amendment proposals that re- ulation over local fiscal policies, tax proposal debated this year ceive a strong consensus of sup- The voters are ready for a that will allow people the oppor- port from members. Currently. change. Voters are ready for voter tunity to vote on their tax struc- they are completing the evalua- control of city taxes, ture; (2} the only tax proposal tions, most of which relate to that gives cities and their citi- state government matters. We Voter Control of City zens the opportunity to change have encouraged them to adopt or abolish property taxes: and our Voter Control of City Taxes, Taxes . . . a New and (3) the only proposal that would but it appears this will not be one Better System of allow citizens an opportunity to of their recommendations. And control and direct their govern- Florida's citizens will be shut out Government ment. of the process again. So here is Instead of being on the outside what you need to do: The concept behind "Voter Con- looking in, citizens would have a d' get educated on the issue of trol of City Taxes" is so amazingly voice in helping to shape their Voter Control of City Taxes. The QUALITY CITIES -- MAY 1992 5 League has sent information to Sample Resolution... a~ municipal officials on this proposal. However, more infor- A RESOLUTION OF THE [City, Town, Village] SUPPORTING A mation is available. Contact the STATE CONSTITI_rlIONAL AMENDMENT WHICH PROVIDES FOR League for this material. VOTER CONTROL OF CITY TAXES. 4' you should send a letter to your representatives and sena- WHEREAS, the tax sources of cities are strictly regulated and tors requesting that they support limited by the state Constitution and/or the state Legislature; and and vote for the Voter Control of WHEREAS, the Legislature has required cities to implement and City Taxes proposal. comply with inequitable property tax procedures, to operate with nar- 4' the city should adopt a row and restrictive tax sources, and to suffer increasingly inequitable resolution reaffirming the city's formula allocations of state shared revenues; and support of Voter Control of City Taxes while requesting that the WHEREAS, the severe financial problems facing Florida's city governments are well documented and remain unchallenged; and Legislature take up, support and WHEREAS, the Florida Taxation and Budget Reform Commission pass, during its special budget studies show that cities have exhausted most of their discretionary session, a joint resolution plac- taxing capacity and will be confronted with substantial financial short- lng a constitutional amendment on the ballot to be voted on by falls during this decade; and WHEREAS, the cities of Florida have consistently and diligently Florida's electorate during the sought expanded and flexible taxing capacity from the Florida Legisla- November 1992 elections. (See ture without success; and sample resolution this on page.) WHEREAS, federally shared dollars with cities have all but disap- 4' you should hold a local peared and remain a low national priority; and press conference to inform the WHEREAS, previous decades have provided major shifts for pro- press of, and educate them gram costs from the federal and state to city governments through about, Voter Control of City innumerable unfunded mandates; and Taxes. 4' you should meet with your WHEREAS, cities' citizens should be provided an opportunity to evaluate and implement the tax sources most appropriate to their corn- newspaper's editorial board to munity needs; and familiarize them with Voter Con- WHEREAS, many citizens believe they no longer can influence trol of City Taxes and urge their public decisions and believe the political process deprives them of endorsement. strength and influence; and 4' you should plan a brief discussion of the issue at city WHEREAS, most citizens believe they should have a direct say in how they are taxed; and commission meetings and get WHEREAS, this is an appropriate time to review the unlimited citizens fired up about getting power of the Legislature to authorize and control all municipal taxing control of their taxes. policy and carefully consider returning taxing authority to the voters of 4' you should offer to do a the cities, guest editorial on television. Most television stations grant NOW, THEREFORE, BE IT RESOLVED by the [City, Town, Vii- free time to responsible spokes- lage]: persons to express their views on issues of interest to the commu- Section 1. That the [City, Town, Village] will support a Constitu- nity. 4' you should get other groups tional amendment that would provide for each city government to se- cure the taxing powers their voters authorize by allowing city officials to support and endorse Voter to design an ongoing tax structure that is compatible with their indi- Control of City Taxes and its vidual community goals and place it on the ballot for their voters to concept. Ask permission to use their endorsements in press re- express their preference for the existing tax structure or this new pro- posed tax structure, leases as well. Section 2. That the [City, Town, Village] will work with all cities in Together we can make a dif- Florida and the Florida League of Cities to ensure that this Constitu- ference. As FLC President Martin tional amendment is placed on the general election ballot in November has said, "The membership of of 1992. this League, when sufficiently Section 3. That copies of this resolution be sent to all members of informed and mobilized, will be our legislative delegation, able to achieve success in any meritorious Legislative en- PASSED AND ADOPTED by the [City, Town, Village], in official deavor. ~ · meeting on this __ day of , 19__. Sharon O. Berrian is director oJ' public information at the League. FLORIDA LEAGUE OF CITIES 6 RECEivEo Palm Beach County MUNIIC E P.O. 6OX 1989, GOVERNMI~NTAL CENTER, WEST PALM BEACH, FLORIDA ~2 (407) 36~4~ All Palm Beach County Mayors and Managers Jack Horniman, Pa~ch County Municipal League Executive Director U~/ May 5, 1992 Voter Control of City Taxes At the request of the Florida League of Cities, the Palm Beabh County Municipal League is being urged to inform its member cities regarding the Voter Control of city Taxes legislation that will likely resurface during the legislative special session tentatively scheduled for May 18, 1992. This legislation, if approved, will require %hat it be placed on the November 1992 statewide ballot· I have attached a Florida League of Cities memorandum dated April 24, 1992 regarding this matter for your information. Also attached is a sample resolution provided by the Florida League of Cities for your municipality's use if such action is deemed appropriate by yOUr city. The Floriaa League of cities is also encouraging individual city elected officials and other officials or staff that may be on statewide committees, boards or task forces to notify their respective legislators to express their support of this legislation. If you have any questions regarding this matter, either contact this office or Michael Sittig, Assistant Executive Director of the Florida League of Cities or Ken Small, Director of Economic Research, Florida League of cities. P.B. CO. MWNICIPBC TO: CITY C: ~I~ MANAGER FLORIDA LEA U OF CITIES, INC. Memorandum TO: Trustees, FLC Public Risk Ser¥ices Programs Presidents, Regional/Local Leagues FLC Pclic¥ Committee Me,bars ~,, Selected City Clerks FitOM: Michael Sittig, Assistant E t' xecu ire Direc or DATE: A~ril 24, 1992 SUBJECT: VOT2]I CONTROL OF CXT~ TAXES - FLC BOARD ACTION The Board of Directors of ~he Florida League of cities held a special meeting in Bradenton, Florida, to develop a legislative strategy for adoption of our proposed constitutional a~endment providing an equitable tax system for Florida's cities. The Legislature will meet in special session next month (tentatively on May 18) to review budget and tax issues relating to state local goveralent and it is our immediate goal to have this issue approved and placed on the November 1992 statewide ballot. The Florida League of cities' Board of Directors voted overwhelmingly support this amendment and to request all city officials to R~ pursue this "all out~ effort. As FLC President Martin has said, "The membership of this League, when sufficiently informed and mobilized, will be able to achieve s%Iccess in any meritorious ~egislative endeavor." Please ask your legislators to allow the p~blic to vote on Voter Control of Clt]~ TIXeS by placing this amendment on the November 1992 ballot. When you receive a coI~itment, please advise me at the l~eague so we may coordi~ate your efforts to a successful end. The constitutional amendment will be introduced and sponsored by Representative Harry Goods (Melbourne) and Senator Fred Dudley (cape Coral). This proposed amendment would replace the Legislature's absolute power to dictate tax revenues for your city and transfer that authority to each city council and the voters of each individual ci~y (a brief explanation is printed on the back), l~/blic opinion polls show over 80 percent of our ~qielatcrs must understand that their continuing failure to reform current laws regulating city tax policy is, in effect, support for dramatic property tax increases in the future since all o~her authorized tax revenues are capped or limited. Recently, the Tax and Budget Reform Commission estimated that without significant legislative reform, over 25 percent o~ Florida's cities will reach the ccnsti~utional l0 mill cap by 199~. Xf you have any questions, wculd like a sample resolution or additional i~formation, please call me at (904) 222-9684 or 1-(800) ~42-8112, ~: FLC Board c~ Directors &ttac~ente ~O1WeitPar~Ave~ue · P.O,~-~l?57 · Ta!~a~. Florida 32302-1757 · d~04)222-9684 · Voter Control of City Taxes by Lynn Tipton Observers of Florida politics The Board of Directors of the Florida League of c~ntake this commentary even Cities is asking the regional leagues of cities further:people have historically moved to the Sunshine State to and the membership to express support for a get away from the large political machines in their urban home- constitutional amendment to be placed on the towns,or they have retired here to benefit from the low tax rates. ballot in November 1992 that would grant In the past decade, however. fiscal home rule powers to cities and their youngeras well. and people the have demands moved for here citizens. If approved by Florida voters, this roads, schools and the more "cosmopolitan" services have hit constitutional amendment would remove the the various levels of government like shoekwaves. Through this Legislature's absolute power to dictate tax period, however, the cry of "no tax increases" and especially the structure and tax policy to cities and would fight against the property tax have surrounded each attempt return tbat power to the voters of each by the respective governments to individual city. respond to the demands. How do Florida voters really feel about their taxes and the services they receive? In a poll I conducted by Frederick/Schnei- ders, the results show that 93 n council chambers across they cannot make a difference: percent of those polled believe the state, municipal officials that the political system is spi- that they should have a direct have faced increasingly hos- raling beyond anyone's control, say in how they are taxed (see tile residents during their The Harwood Group, in its re- the article on page 21). annual budget hearings, port "Citizens in Politics" pre- How, then, can city govern- Florida's unchecked growth, nu- pared for the Kettering Founda- ment meet the challenge of in- merous federal and state man- tion, found that people believe volving its citizenry in the finan- dates, and increased demands that "the present political system cial planning of service delivery for services coupled with the is impervious to public direc- when the sources for revenue ever-escalating cost to provide tions; a system run by a profes- are restricted by the state? those services are matched sional political class and con- against stagnant and limited trolled by money, not votes. municipal revenue sources like What's more, people do not be- Tax Reform the biblical Goliath facing David. lieve this system is able to solve A common perception has the pressing problems they Tax reform has been a popu- been that most Americans are face." The report concludes that lar buzz word in Florida for quite apathetic toward government {at the challenge will be to join citi- some time, but especially since any level). But new studies show zens and politics together, and to the 1990 elections. The Govern- it may not be a plague of apathy, find a role for citizens in the po- ment by the People Commission but a belief by individuals that litical process.' (also known as the Frederick FLORIDA LEAGUE OF CITIES 38 Commission), the Florida Taxa- voted to change their city charter charges to private utilities for tion and Budget Reform Corn- to restrict absolute property tax the privilege of doing business mission and several public inter- revenue growth to 3 percent per within the city limits, amount to est groups have spent the last year. Statewide, the "Save Our nearly 4 percent of city reve- year debating what is wrong with Homes" advocates are striving to nues. Similarly, fine and for- the present system and what place a constitutional amend- feiture revenues constitute ap- options are available for change, ment on the 1992 ballot that proximately 1 percent of all reve- In most of these discussions, would limit local residential hues. however, the state's needs have property tax increases to 3 per- User fees and other charges dominated, cent annually. In poll after poll, for services have become the The League's Board of Direc- the property tax is called the workhorses for cities, resulting tors is suggesting a change to most unfair tax. It is important in approximately 40 percent of the state's constitution that to note, however, that revenue total revenues. The use of these would allow a city's voters to from property taxes provides funds is limited to the programs authorize taxing powers. To un- only about 16 percent of an av- for which they are charged, and derstand this proposal, it is im- erage city's total revenues, the programs often must be sub- portant to first look at: the cur- The municipal utility tax is sidized to ensure that all citizens rent tax situation for Florida's levied upon specific utility serv- have access to services. Public cities; how other states have ices and is collected and remit- transit systems and parks and dealt with municipal home rule; ted to the city by the utility pro- recreation services are prime ex- and what fiscal home rule could vider. Considered by many tax amples of user-fee based pro- mean for Florida cities, experts to be a fair tax because grams that are often subsidized it is borne proportionally by the by tax revenue. The Current Picture users of the utility, the utility tax State revenue sharing and the in Florida is capped at 10 per- half-cent sales tax are the source cent by state law. The tax repre- of 8 percent of an average city's The Florida Constitution does sents 6 percent of an average revenue base. The Florida Legis- not provide fiscal home rule to city's total revenue, lature started the revenue shar- municipal governments. The The occupational license tax, ing program in 1972 by forming taxing authority for cities, towns once a strong source of revenue, a trust fund which generated its and villages has come from state has been restricted since 1980. monies from percentages of two law and has been limited to the In 1972, the state rewrote the unit-based sources: cigarette property tax, municipal utility license law and froze the rates taxes and motor fuel taxes. In tax and occupational license tax. following a Supreme Court deci- that first year, the fund gener- Despite repeated attempts by sion. In 1980, the state allowed ated $132 million and was dj- cities, efforts to gain additional specific percentage increases; vided among cities based on a sources of revenue and flexibility however, the rates have been non-controversial formula. To- in existing sources have not frozen since that time. (This has day, the program is estimated to been successful, resulted in tax inequities due to generate only $196 million. If it It is expected that the Florida the rate changes that were made had kept pace with inflation, the Taxation and Budget Reform in 1980. The inequities cannot total would be well in excess of Commission will receive data be corrected without losses in $400 million. The formula to dis- from its consultants showing revenue.) The tax currently pro- tribute these funds has become that cities in Florida will face vides less than 1 percent of a quite controversial due to the deficit financing by 1996 unless city's total revenue, automatic increases given to services are cut or taxing capac- Since the late 1970s, cities Dade County. It is also impor- ity is increased. The results are have not been able to look to tant to note that due to the fluc- also anticipated to include the federal funding either in direct mating oil economy and de- fact that, if no changes are aid or through grants. Despite creases in cigarette consump- made, over 25 percent of the the mandates which Congress tion, these revenue sources are cities will be at the 10 mill cap passes on to cities each year, not perceived as healthy ones. by the end of this decade. Fur- federal assistance has virtually Where does this leave Flor- thermore, the cumulative deficit disappeared. Less than 3 per- ida's cities? With politically un- in taxing capacity between now cent of an average city's revenue popular and legally capped and the year 2000 will equal is federally shared revenue, taxes! Since balanced budgets $1.3 billion and the annual deft- The state has approved vari- are required by state law, only cit for fiscal year 2000 will be ous local option taxes, which three options are available: re- over $500 million, counties are authorized to levy. duce or eliminate services; ob- The millage rate for the prop- Cities are authorized to share in tain additional taxing authority erty tax is capped at 10 mills; these tax revenues but they do from the Legislature; or acquire however, many cities have al- not constitute a large portion of a greater commitment from the ready reached their political cap. a city's total revenues, state in sharing its fiscal re- In Jacksonville, citizens recently Franchise fees, which are sources. Realistically, the state QUALITY CITIES -- OCTOBER 1991 39 is not in a posture to share its The constitutional amendment fiscal home rule with the grow- dollars. Mandates and increas- could be placed on the ballot by lng involvement of voters on lng demands for services make it the Florida Taxation and Budget public policy issues, especially difficult for cities to eliminate or Reform Commission or by the taxes. The tax structure de- reduce delivery. Thus. cities are Legislature. signed by the city leaders could left with a dire need for changes Should this constitutional be as innovative as one's imagi- in taxing authority, amendment be approved by the nation. voters, city officials in each city This could be a unique oppor- would have the authority to de- tunity for a city to design a tax Voter Control of City sign an ongoing tax structure structure that would provide a Taxes - A Chance for that is compatible with their permanent solution to what community goals. It would be seems to be an eternal problem. Change placed on a citywide ballot in the form of a charter amendment. If Understanding the The Board of Directors of the the voters approved the pro- Florida League of Cities is asking posal, it would become the new Vropo$1[[l the regional leagues of cities and tax structure for that city. If the the membership to express sup- voters rejected it, the existing tax Fiscal home rule sounds port for a constitutional amend- structure of that city would re- simple because the premise is merit to be placed on the ballot main. Basically, it would give the simple. But the process, on the in November 1992 that would city and its residents the oppor- other hand, would involve citizen grant fiscal home rule powers to tunity to pick between the tax input and deliberation. After cities and their citizens. If ap- structure that is currently in public hearings and workshops. proved by Florida voters, this place, which was designed by a city commission would put to- constitutional amendment would the state constitution and the gether a package that matched remove the Legislature's abso- Legislature, and the tax struc- the service demands and taxing lute power to dictate tax struc- ture that would be designed by capacity of the citizens. Then the ture and tax policy to cities and their current city leaders, vote of the people would either would return that power to the This proposal is intended to approve that package or leave voters of each individual city. combine the municipal goal of the city with its current tax  structure. There are several obvious questions that come to mind in Saving for Retirement considering this proposal. First. is there a way to achieve local Shouldn't be Risky Business. government taxing authority without placing a constitutional Almost daily you read about the insurance industry ~, amendment on the ballot? A crisis. Even Congress is calling for tighter management [. similar proposal could be ap- and more regulation. So, why place all of your guaran- t1.] proved by the Legislature: how- teed investments with one insurance company? ~ ever, the Legislature has consis- tently shown that it does not place a high priority on munici- With the ICMA Retirement Corporation (RC), you pal revenue authority. If the Leg- don't have to. RC manages insurance contracts on islature were to enact this pro- behalf of thousands of public employers through the posal in the general law instead ICMA Retirement Trust. of as a constitutional amend- ment, it would limit the revenues To help reduce risk, we spread investments in our to only those permitted by the Guaranteed PLUS Fund among a variety of carriers, constitution. This precludes And we perform continuous, comprehensive credit changes to the property tax. research on each insurance underwriter. True flexibility can only be achieved by amending the consUtution. Your retirement savings are too valuable to subject to Would a city be able to change risky business. For more information on RC-adminis- the 10 mill cap on property tered plans, including RCs Guaranteed PLUS Fund, taxes? Yes. up or down. Cities call toll-free at (800) 669-7400. would also be able to change or even abolish the $25,000 home-  Retirement is ~ stead exemption, and they could our middle name. abolish the property tax, if the citizens approved such a pro- ,c~, * posal. RETIREMENT 777 N0~h Capitol Street, NE · Washinglon, DC 20002-4240 coPa. o~u,T~On (202) 9624600 Toll-Free ('202) 669-7400 FLORIDA LEAGUE OF CITIES Is it possible that every city in Selectedquestionsfrom theFrederick/ the state would design a differ- ent taxing structure and, there- Schneiders Poll fore, eliminate uniformity among municipal taxes? Yes. One of the Which of the following options regarding state and local governments do most exciting aspects of this pro- you think is the best? posal is the possibility for tax · The state government should have strict control over what taxes structures which reflect the na- ture of each community. Urban local governments are allowed to levy: {26%) or rural: residential or a mix of · The local governments should have flexibility as to what taxes business, industry and residen- they want to levy and how much they want to charge (67%1 tial: coastal, panhandle or in- land: young residents with de- Would you favor or oppose a law which would allow Florida cities to mands for complex services or a add or abolish any taxes they want to if those taxes were approved by retirement community with a a majority vote of the people? need for a lower level of services; Favor: 72% Oppose: 24% Don't know: 4% regardless of the demographics, the flexibility would be available Voters should have a direct say over how they are taxed. to each city to create a respon- Agree: 93% Disagree: 6% sive tax structure. What are the chances for suc- cess? The proposal could be In general, how would you rate the job the elected officials in your city quite controversial. This pro- are doing--excellent, good, not so good, or poor? posal would require tremendous Excellent: 3% Good: 61% work, but most of all it would Not so good: 21% Poor: 12% require strong membership sup- Don't know: 3% port. The probability of success is directly related to that sup- Using the scale of excellent, good, not so good, or poor, please rate the port. elected officials in your city on the following. The two-thirds of Florida's voters who want local govern- Holding down taxes. ment control of taxes and the Excellent 6% Good 44% nine out of 10 citizens who be- Not so good 31% Poor 14% lieve their voices should count in Don't know 6% the decisions for local spending are not anxiously waiting for The City of Greenacres' convention ad was misprinted in the August some leader to put this proposal issue. The corrected ad appears below. We apologize for any inconvenience before them. These citizens do this may have caused. not think the participation they seek is feasible, if public opinion studies are to be trusted. The timing for this proposal is good Samuel $. Ferreri ~ because of the statewide focus Mayor on tax reform. Merge the timing with the views of Florida voters, Lucille C. Tourville and the chance to permanently Deputy Mayor change the nature of municipal government is apparent--it is an Richard C. Radcliffe opportunity that should not be Councilman City of Greenacres ignored! il James E. Rawlins, Sr. NOTE Councilman Best wishes for a successful 1. Kettering Foundation, Citi- Charles E. Shaw zens and Politics: A View from Councilman 65th Annual Convention Main Street, prepared by the to the Harwood Group (Dayton, Ohio: Ben3.' D. Kanterman Kettering Foundation, 1991}. Councilwoman Florida League of Cities and its host Lynn Tipton is the League's ex- David B. Farber ecutive assistant for intergovern- City Manager the City of Tampa. mental relations. QUALITY CITIES -- OCTOBER 1991 41 LEGISLATIVE BULLETIN P. O. Box 1757 · Tallahaasee, FL 32302-1757 · (g04) 222-9684 May il, 1992 · VoL 19, No. 21 ~, FLOI~U~ LEAG~E OF CITIES "Voter Control of City T~xes' to be / transfer oflicensure of adult foster homes from the Introduced during Special Session Agency for Health Care Administration to HRS; / legislation related to definitions of Section 408.07 Dates have been set for tha next special session of the (Health Care Administration). 1992 Legislature. Beginning June 1, and continuing Other issues may be considered by the Legislature if until June 19, the Legislature will convene to adopt the the members vote by a two-thirds majority to consider state budget and debate state and local tax, revenue and them. expenditure issues. Committee meetings are expected to begin May 18. TheLeague[s. proposalform-nidpaltaxrefonn, Voter Home Rule Committee Kicks Off Petition Control of City Taxes, will be introduced during the Drive for "Voter Control" special session by Rep. Harry Goode of Melbourne and Sen Fred Dudley of Cape Coral. Special tho_~ks to beth The Home Rule Committee, Inc. will begin a petition of them_ We are asking the Legislature to place this drive to ensure that the Voter Control of City Taxes constitutional amendment on the ballot inNovemher. If proposal is placed before the voters. FLC President Florida's voters approved it, each city would have the Sadye Gibbe Martin will start it offwith a press confer- option to design a new tax structure and place it before ence on Tuesday, May 12,1992 inTallaha~ee. Then, the their own voters. If approved by the voters, the new Commlt~cee will take the petitions to the people in the structure would become law; if defeated, the existing following cities: structure would remain in place. Cities would be able to structure a plan that meets the ~mlque needs oftheir city. - TENTATIVE SCHEDULE - City officials should personally contact their senators May 11 - Pensacola and representatives and ask for them to co-sponsor the May 13 - Jacksonville Voter Control of City Taxes proposal by Rep. Goode and May 15 - Orlando Sen Dudley. May 19 - West palm Beach For more information, see the May issue of Quality May 20 - Ft. Lauderdale Cities, or call Sharon Berrian at the Leagne office. May 22 - .Milmi May 26 - Ft. Myers Other Topics to be Heard during May 28 - T~mpa Special Session May29- St. Petersburg/Clearwater June 1 - Toll,h~ssee This special session will also include several issues Future dates and locations will be released later. For that were unresolved during the reg~,lar session and the additional copies of the petition and more information on' three special sessions. In the joint resolution issued by the petition drive, call Shoran Berrian at the League Senate President Gwen Margolis and House Speaker office. T.I~ Wetherell, the following issues were listed as those that will be considered: ,~ legislationrelatingtotherevenuesofstateandlocal One-Cent Sales Tax for Cities governing, uts (under this topic we hope that afford- able housing will be considered); On May 6, 1992, the TAxAtion and Budget Reform / the PECO construction of educational facilities Commission held their last meeting in order to meet legislation; their constitutional deadline to present ballot issues to / legislation relating to the Florida Retirement Sys- the Secretary of State on May 7, 1992. tern (FRS); Several issues were placedon the ballot, including a / the natural gas pipelinelegislation as heard during proposalto authorize counties and municipalities to levy the reg~;lar session; up to a one-cent sales tax, ffapproved by the voters. The / unemployment compensation benefits; money could be used for any local government service. / solid waste mana~ement; The act~ml constitutio-sl language would appear as a / legislation related to laws and rules that stand newsubsection%'ofSectionlXinArticleVIIon~inance repealedbetweenJune 1,1992andbeginningofthe and ~xation and would read, 'In addition to any tax 1993 reg~]ar session, other than laws relating to otherwise authorized by general law, each county and Chap. 395, Fla. Stat.; each municipality sh~ll have the power to levy a discr~ / reg~l-tion of medical facilities (Chap. 395, Fla tionary sales and use tax of up to one percent oft~able Stat.); tra-sactions, as defined by the legislature for the state / provisions of Chapters 97-127, 92-177 and 92-178, salesandusetax, forthepurposeoffunrllnglocalgovem- Laws of Florida; meat services. However, the legislature may retain any / c]alm bills; exemptiononsaidtaxthatexistedonJanuaryl, 1992, for / properly advertised local bills; the local discretionary sale sur~_a~ The levy of the tax ,~ provisions of CS/SB 1720, relating to corrections sh~]] be puts-ant to ordinance of the county or mlmici- (from the regular session, as amended March 13, pality governing authority and approved by a vote of the 1992); electors.' / internal orgAni~.ationofthe Department of Agricul- This proposal was opposed by the Florida Association ture and Consumer Services; of Counties and was supported by the Florida League of / legislation related to witness tampering; Cities. The Taxation and Budget Reform Commission rejected our proposal on Voter Control of City Taxes. CONSTITUTIONAL AMENDMENT PETITION FORM VOTER CONTROL OF CITY TAXES 104.185 It is unlawful for any person to knowingly sign a petition or petitions for a particular issue or candidate more than one time. Any person violating the provisions of this section shall, upon conviction, be guilty of a misdemeanor of the first degree punishable as provided in s. 775.082, s. 775.083, or s. 775.084. I am a registered voter and hereby petition the Secretary of State to place the following amendment to the Florida Constitution on the ballot in the next general election held more than 90 days after this petition is filed with the Secretary of State. Name (Please print your name as it appears on the voting roll.) Street Address City Zip County Precinct Congressional District Signature Date Ballot title and summary: VOTER CONTROL OF CITY TAXES This amendment permits the governing body of a municipality to abolish or levy any tax if it is approved by a majority of the voters in the municipality. It specifically prohibits any municipality from levying a personal income tax. Text of the amendment: The following new subsection (c) is added to Section 9 of Article VII of the Florida Constitution: Section 9. Local taxes.-- (c) The governing body of a municipality may, by ordinance, submit to the electors of the municipality a proposed amendment to its charter, which amendment may authorize the municipality to levy or abolish taxes and provide for exemptions therefrom, notwithstanding any limitations on taxation otherwise provided in this article or Article XII. The municipality shall submit the proposed charter amendment contained in the ordinance to a vote of the municipality's electors and said charter amendment shall become effective upon the favorable vote of a majority of said electors. Any tax authorized or abolished pursuant to this subsection may be repealed in the same manner as the tax was initially authorized or abolished. Nothing in this subsection shall authorize a municipality to place a tax upon the income of natural persons who are residents or citizens of the state. Nothing in this subsection shall be construed to repeal any municipal taxing authority in effect on the effective date of this subsection. Home Rule Committee - Post Office Box 1757 Tallahassee, FL 32302-1757 PAID POLITICAL ADVERTISEMENT BY HOME RULE COMMITTEE MEMORANDUM TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER~ SUBJECT: AGENDA ITEM # ~ - MEETING OF MAY 12, 1992 CONSIDERATION OF RESOLUTION NO. 52-92/VOTER CONTROL OF CITY TAXES DATE: MAY 8, 1992 This item is before you to consider adoption of Resolution No. 52-92 supporting a state Constitutional amendment that would allow each city government to design a tax structure that is compatible with their individual community goals and place it on the ballot. Voters could then choose between the existing tax structure or this new proposed tax structure. The Board of Directors of the Florida League of Cities is asking the regional leagues of cities and the membership to express support for a Constitutional amendment to be placed on the ballot in November 1992 that would grant fiscal home rule powers to cities and their citizens. If approved by Florida voters, this Constitutional amendment would remove the Legislature's absolute power to dictate tax structure and tax policy to cities and would return that power to the voters of each individual city. It is anticipated that this Voter Control of City Taxes legislation will be addressed during the legislative special session tentatively scheduled for May 18, 1992. Attached are memoranda from the Palm Beach County Municipal League and the Florida League of Cities pertaining to this matter. Also provided is a Quality Cities article entitled "Voter Control of City Taxes" which sets forth the Florida League of Cities' position on the issue. Recommend consideration of Resolution No. 52-92 supporting a state Constitutional amendment which provides for voter control of city taxes.