Municipal County Special District COGs

Local Government When most people think about government, they think about the national government. Of all three levels of government, local government has the greatest impact on our daily lives.Of all three levels of government, local government has the greatest impact on our daily lives. – –Drinking water – –Schools – –Streets – –Parks and recreation – –Police and Fire Protection

Local Government Local Government takes many forms: – –Municipalities (cities and towns) 1,200+ – –Counties 254 – –Special Districts (water, hospital, schools, housing, conservation, community colleges, etc.) – –Councils of Governments All collect revenue and provide services

Municipal Governments City government powers are outlined and restricted by state and national constitutions, municipal charters, and statutes. Texas has two legal classifications of cities: – –General Law Cities: a community with a population of 201 or more; limited by state law – –Home Rule Cities: a community with a population of 5,000 or more; locally adopt and revise a charter; must be approved in an election

General Law Cities A general law city has extraterritorial jurisdiction over zoning and building for half a mile beyond its formal boundaries. A general law city may annex territory no greater than 10 percent of their existing land but the residents must approve of the annexation by a majority vote.

Home Rule Cities A city charter establishes the powers of municipal officers, sets salaries and terms of office, and spells out procedures for passing, repealing or amending city ordinances. A home rule city can exercise powers not given to the state or to general law cities: – –Recall (El Paso, College Station) – –Initiative (San Antonio, Farmers Branch) – –Referendum – –Annexation

Home Rule Cities A home rule city also has extraterritorial jurisdiction over zoning and building for five miles beyond their border. Home rule cities can annex territory by a simple majority vote of the city council and it does not require the approval of the residents of the area to be annexed.

Forms of Municipal Government Strong Mayor Council The mayor is the chief administrator and the political head of the city -- provides strong leadership but there is the threat of corruption

Forms of Municipal Government Strong Mayor Council Characteristics: -- Mayor is elected at large (whole city vote) and has the power to hire and fire department heads -- Mayor has the power to veto council actions -- Mayor has budgetary power (plan for raising and spending city money) -- Mayor sets the agenda for the council

Forms of Municipal Government Weak Mayor Council The mayor’s position is weak because the office shares appointive and removal power over city personnel with the council. The mayor is no more powerful than the other members of the council.

Forms of Municipal Government Council-Manager The city manager is professionally trained (MPA), earns a competitive salary, and serves at the pleasure of the council. -- the city manager in Dallas makes $400,000/year (2014) -- councils and mayors are not supposed to “micromanage” departments -- tend to respond more to elite and middle class concerns rather than the concerns of the working class

Forms of Municipal Government Council-Manager The mayor and the council make decisions after debate on policy issues such as taxation, budgeting, annexation and services. -- most city managers exert strong influence on these matters -- once policy is made, the city manager directs an appropriate department to implement that policy

Municipal Services For most people, city government’s primary job is to provide for basic services, but limited resources often lead to competing demands – –Police and fire protection – –Streets – –Water, sewer, and sanitation – –Parks and recreation City government also provides for regulation – –Zoning – –Construction – –Food service

Municipal Finances Most city governments in Texas face a serious financial dilemma: they barely have enough money to provide basic services and must reject or shortchange new services Cities’ two largest revenue sources, sales tax and property tax, are limited by state law – –Regressive taxes Texas cities are relying more heavily on fees

Municipal Finances: Taxes Texas allows municipalities to levy taxes based on the value of property – –The problem with property taxes is that poorer cities with low property values must charge a high rate to provide for minimum services Highland Park tax rate: 22 cents/$100 valuation Wylie tax rate: 90 cents/$100 valuation The other major source of revenue is the optional 1.25 – 2 percent sales tax – –The sum of city, county, and special district sales tax cannot exceed 2 percent

Municipal Finances: Fees When residents are charged for a particular government service, this is called a user fee – –These fees are popular because voters often oppose higher taxes but generally believe that people should pay for what they actually use Cities may charge for city provided electricity, water, sewage, and garbage collection Other charges include swimming pool fees, golf course fees and ambulance service; inspection fees, building fees, and beer and liquor licenses

Abatements and Exemptions A tax abatement is a tax reduction or exemption granted by local government to an industry or business. Tax exemptions – –Homestead exemption (up to 20% of the assessed value of the property) – –Additional exemption for disabled veterans and for homeowners 65 years of age and older

CITY REVENUE OF HOUSTON IN 2012 (%)

Counties Counties are units of local government that are limited to those structures and powers specifically granted by state law – –If county officials want to respond to a local problem by taking an action not specifically allowed by state law, they must obtain authorization from the Texas legislature Texas has 254 counties, the most in the nation, and all counties in Texas have the same governmental structure – –Loving County (population 82) has the same structure as Harris County (population 4,180,000) – –Rockwall County (147 square miles) has the same structure as Brewster County (over 6,000 square miles)

Counties The Texas Constitution provides for the election of four county commissioners, county judge, county and district attorneys, a county sheriff, a county clerk, a district clerk, a county tax assessor-collector, a county treasurer, constables, as well as judicial officers – –All are elected in partisan elections and serve a four year term – –County officials tend to think of their office as their personal fiefdom and resent interference by other officials Hence, Texas counties are usually highly decentralized

Special Districts A special district is a unit of local government that performs a single service in a limited geographic area. Districts can be created to do almost anything that is legal. – –Drainage districts – –Community College districts – –Library districts – –Metropolitan transit authorities The number of special districts has increased dramatically in the last 50 years. – –There are more special districts in the United States than any other single type of government – –Only Illinois and California have more special districts than Texas

Special Districts There are two types of special districts in Texas: – –Independent school district – –Nonschool special district (Everything else) The special district must be chartered by the state or otherwise approved by the Texas legislature. – –They have taxing authority (property; sales tax; tolls) – –They are independent from other governments The Plano Independent School District is completely independent from Plano’s city government

Special Districts Why create a special district? – –A city or county may have limited revenue They may have reached the state-mandated sales tax limit of 2% – –Only a small area within a city or county may need the service. Why tax everyone? – –A developer wants to provide water and sewerage for a subdivision that lies outside the city limits. Municipal Utility District (MUD) – –The demand for a service may extend beyond a single jurisdiction. A river authority with the power to govern the use of water throughout the river’s watershed

School Districts More than 1000 Texas school districts have been created by the Texas legislature. – –Governed by a popularly elected, nonsalaried board of trustees – –Elections are nonpartisan and do not coincide with statewide elections; in urban areas, city and school board elections may coincide (usually the second Saturday in May) – –The board makes district policy and are responsible for hiring a superintendent who manages the day- to-day operation of the district Board members often make political demands on the superintendent

School Districts Public education has become a shared responsibility (both financially and from a policy perspective) with increased state and federal requirements for testing students Different school districts have varied sources of financial support The state’s system of funding public education has long been controversial as the bulk of funds for many school districts is the property tax

Councils of Government Although the needs of local government vary, the basics of providing governmental services are the same for virtually all local governments. – –Nearly all municipal and county governments, as well as most special districts, participate in a council of government (COG). – –COGs have been created to allow cooperation and communication by local governments within a specific region. – –Because COGs are not governments, they have no taxing power and cannot pass laws, rules or ordinances They are used to provide training for city managers, council members, mayors, and other elected and appointed officials They are also useful in planning for future regional environment, transportation, and land use issues

Quick Write In your opinion, which level of government has the greatest influence on your life? –National, State, or Local (City/County) –Give three reasons to support your answer