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‚ÄčChallenge
Over the years, flexibility for cities and towns to fund services has diminished while demand for these services has risen. Cities and towns need dependable and consistent revenue sources to support efficient and effective delivery of municipal services that residents and businesses demand for a positive quality of life and economic prosperity.
 
Solutions
Support consistent and fair funding of the Local Government Fund as the stable revenue source it was originally intended to be. This formerly stable revenue source has not only been reduced in dollars in recent years, but the formula that determines the distribution of the dollars is also being challenged. Now, the legislature is considering creating a new formula to calculate the LGF. The Municipal Association will work to ensure cities and towns are part of the debate regarding a new formula.
 
Support flexibility for councils to use existing revenue sources in the most beneficial way for local residents and businesses. Through the years, the legislature has increasingly restricted cities and towns from raising revenue and restricted them on how that revenue can be spent. The Municipal Association will research and propose new ways to increase the flexibility given cities and towns according to state law for using existing revenues to provide services.