powers of local governments

Question 1

general rule of local government power

Answer 1

localities have no inherent powers = no powers unless conferred in the charter for the locality or in general statutes conferring powers on localities

Question 2

almost all localities in VA have the power, by charter or statute, to:

Answer 2

a. Tax (normally real property or local sales taxes)

b. Sue and be sued

c. Enter into contracts

d. Acquire, hold, and dispose of its revenue

e. Exercise eminent domain

f. Borrow money and issue tax-exempt bonds

g. Acquire, hold, and dispose of real and personal property

Question 3

can localities delegate power?

Answer 3

only under limited circumstances

powers conferred by charter and statutes must generally be discharged by the governing body … in land use administration or other areas, limited administrative or decision-making is permitted subordinate local bodies - but must be controlled by fixed, ascertainable standards

– no delegation of policy-making powers

Question 4

scope and limitations of power conferred onto localities

Answer 4

DILLONS RULE

a locality can exercise only those powers expressly granted by statute or charter and NO OTHER POWERS UNELSS:
(1) necessarily implied in or incident to the powers expressly granted
or
(2) implied power is essential and indispensable to the declared purposes for creating the locality

Question 5

to whom does Dillon’s rule apply

Answer 5

counties and pretty much every city unless the city is identified in the Uniform charter powers act

UCPA allows legislature to single out some approved cities and towns that may exercise powers not expressly prohibited by the constitution or general laws that are necessary or desirable to promote general welfare

Question 6

what happens when the legislature grants a local government the power to do something but does not specifically direct the method of imple- menting that power?

Answer 6

locality’s choice of how to implement the conferred power will be upheld as long as the method selected is reasonable.

Question 7

power to incur debt

Answer 7

(1) ballot vote or special hearing must be held before bonds may be issued by a locality

(2) bonds may be issued only for capital expenditures

(3) there is a 10% limitation on amount of debt = localities cannot issue general obligation bonds over 10% of the assessed valuation of real estate subject to taxation in the locality UNLESS

(a) the bonds are revenue anticipation bonds, which are to be paid back from expected taxes already in place within 1 year

(b) the bonds are special fund bonds which are paid back within 5 years or payment from the project will pay for the project [ex: revenues from a water supply plant to be built]

(c) it is for projects where payment will come from assessments levied upon the property benefited by an improvement

(c) it is a debt arising form civil and criminal jdugment against the locality

(d) it is debt from daily expenses, continuing service contracts, or ordering of supplies

Question 8

police power

Answer 8

local government action must be an appropriate exercise of the police power = must relate to health, safety, morals, welfare of the inhabitants of the state

cannot be arbitrary, discriminatory, or unreasonable

Question 9

taxation power

Answer 9

– localities may levy taxes for public purposes

– localities may not impose an income tax [which is why property taxes are imposed]

Question 10

power to license

Answer 10

power to license any business occupation or activity

license taxes are often based on gross receipts of an activity, this is held to be distinct from imposition from an income tax and is valid