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Municipal Revenue & Taxation <br />local performance measurements to determine the allocation of state aids to local <br />governments, or to deny local governments the authority to establish their own budgets and <br />levies, as such measurements do not account for varying local needs and circumstances. <br />1-B Revenue Diversification and Access <br />Metro Cities supports a balanced and diversified revenue system that acknowledges diverse <br />city characteristics, needs and revenue capacities, and allows for greater stability in <br />revenues. Any diminished level in the provision of state aids creates severe challenges for many <br />cities in the provision of public services and increased reliance on the property tax. <br />Metro Cities supports greater access to other tax and revenue sources and the ability of <br />cities to impose a local option sales tax for public improvements without the need for <br />special legislation. <br />Metro Cities supports current laws that provide for municipal franchise fee authority, and <br />opposes statutory changes such as reverse referendum requirements or other constraints <br />that would reduce local authority and flexibility for establishing, amending, or renewing <br />franchise fees and interfere with local public processes and goals for establishing such fees. <br />Metro Cities supports having local sales tax referendums conducted at a general or special <br />election. The Legislature should recognize the equity considerations involved with local sales <br />taxes, and continue to provide aids to cities that have high needs, overburdens and/or low fiscal <br />capacity. <br />1-C Restrictions on Local Government Budgets <br />Metro Cities strongly opposes levy limits, reverse referenda, super majority requirements <br />for levy and valuation freezes, or other restrictions on local government budgeting and <br />taxing processes. Such restrictions undermine local budgeting and taxing processes, planned <br />growth, and the relationship between locally elected officials and their residents by allowing the <br />state to decide the appropriate level of local taxation and services, despite varying local <br />conditions and circumstances. <br />1-D Budget and Financial Reporting Requirements <br />State laws require cities to prepare and submit or publish numerous budget and financial reports. <br />These requirements often create significant costs to cities, and some requirements result in <br />duplication. Additional reporting requirements should have a clearly defined statement of public <br />purpose and need not covered under existing requirements and balance the need for additional <br />information with the costs of compiling and submitting the information. <br />Considering the numerous existing reporting requirements, Metro Cities supports reducing <br />the number of mandated reports. Metro Cities supports efforts to consolidate municipal <br />government financial reporting requirements in the Office of the State Auditor, including <br />2019 Legislative Policies <br />