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Municipal Revenue & Taxation <br />Metro Cities supports the concept of performance measuring, but opposes using state <br />established local performance measurements to determine the allocation of state aids <br />to local governments, or to deny local governments the authority to establish their <br />own budgets and levies, as such measurements do not well account for varying local <br />needs and circumstances. <br />1-B Revenue Diversification <br />Metro Cities supports a balanced and diversified revenue system that acknowledges <br />the diversity in city characteristics, needs and revenue capacities, and allows for <br />greater stability in revenues. A diminishment in state aids creates severe challenges for <br />many 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 statutory <br />modifications that allow cities to impose a local option sales tax for public <br />improvements, without the need for special legislation. <br />Metro Cities supports having local sales tax referendums conducted at a general or <br />special election. The Legislature should recognize the equity considerations involved <br />with local sales taxes, and continue to provide aids to cities that have high needs, <br />overburdens and/or low fiscal capacity. <br />1-C Restrictions on Local Government Budgets <br />Metro Cities strongly opposes levy limits and other restrictions on local government <br />budgeting processes. Levy limits undermine local budgeting processes, planned <br />growth, and the relationship between locally elected officials and their residents by <br />allowing the state to decide the appropriate level of local taxation and services, <br />despite varying local conditions and circumstances. <br />Metro Cities also opposes the imposition of artificial mechanisms such as valuation <br />freezes, payroll freezes, reverse referenda, super majority requirements for levy, or <br />other limitations to the local government budget and taxing process. <br />1-D Budget and Financial Reporting Requirements <br />State laws require cities to prepare and submit or publish numerous budget and financial <br />reports. These requirements often add significant costs to cities, and many requirements <br />often result in duplication. Any additional reporting requirements should be weighed to <br />balance the need for additional information with the costs to cities of compiling and <br />submitting this information. In light of the numerous existing reporting requirements, <br />Metro Cities supports reducing the number of mandated reporting requirements. <br />2 2016 Legislative Policies <br />