Agenda Packets - 1985/01/02 - Laserfiche WebLink

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RS-3. ELIMINATION OF LEVY LIMITS (A) (cont'd) laws do not recognize changing local conditions with respect to expenditure needs or revenue sources. For example, no allowance is made for cutbacks in federal revenue sharing or for chaugea L7 Lire method of financing some activities. The law does not make adequate allowance for the additional cost of municipal services due to an annexation or consolidation or for shifts of service or costs of services between governmental units. Given uncertainties in state and federal financial aids and the diverse problems and circumstances faced by cities throughout the state, uniform limits are impractical. Such laws are inconsistent with the principles of local self-government and accountability. RS-4. MUNICIPAL BONDS (B) Cities recommends that the erest rate limitations on The traditional way of financing most local public improvements and facilities has been and will likely continue to be through the issuance of bonds. If the needs for replacement, repair, or expansion of local capital improvements are to be met at a reasonable cost, a broad market for municipal bonds must be maintained at the most favorable interest rates possible. It is the League's position that artificial statutory bond interest ceilings do not have the effect of holding down interest rates, and may in fact add somewhat to the costs of bond issuance by the creation of additional legal and procedural requirements. Because interest rates in the bond market fluctuate in response to a combination of many economic forces, it is inappropriate to impose an interest ceiling upon local governments. Local officials must operate within the realities of the market and whether there is a statutory ceiling or not they have every incentive to keep issuance costs as low as possible. RS-5. LICENSE FEES (B) maximum fee With few exceptions, the statutes granting authority to issue licenses or permits do not specify maximum fees. Cities have the discretion to set fees, based on their own costs, needs, and standards. Case law provides ample limitations on cities' power to set license fees in that revenues produced must be related to the cost of issuing the license and regulating the licensed business. It is inappropriate for the Legislature to set maximum fees for off -sale liquor, on -sale wine, bottle club and Sunday liquor licenses. Cities have acted responsibly in using their discretion to set on -sale liquor license fees. It -43-