Powers of Local Governments Flashcards
What is the general rule for local government powers?
No powers unless conferred in the charter (no inherent powers)
Which powers are almost all localities granted in their respective charters?
- To tax (normally: real property, or local sales taxes); 2. To sue and be sued;
- To enter into contracts;
- To acquire, hold, and dispose of its revenue;
- To exercise eminent domain;
- To borrow money and issue tax-exempt bonds; and
- To acquire, hold, and dispose of real and personal property.
Can localities re-delegate those powers to subordinate bodies
Those powers conferred by the charter and statutes must generally be discharged by the governing body of the locality.
In narrow areas like land use administration, some limited re- delegation of administrative or decision-making responsibilities to subordinate local bodies (not policy setting powers) is permitted, but only if the exercise of the power is controlled by fixed and readily ascertainable standards.
What is Dillon’s Rule?
A locality can exercise only those powers expressly granted by statute or charter and no other powers, UNLESS necessarily implied in or incident to the powers expressly granted, OR unless the implied power is essential and indispensable to the declared purposes for creating the locality
What is the scope of Dillon’s Rule?
It applies uniformly to VA counties and, with a few exceptions, to VA cities
Where the legislature grants a local government the power to do something but does not specify the method of implementing that power…
The locality’s choice of how to implement the conferred power will be upheld as long as the method selected is reasonable
When may a local government incur debt (i.e. through issuance of bonds)?
For limited purposes of capital expenditures (i.e. not to pay salary) PROVIDED that the bonds are not in excess of 10% of the valuation of taxable real-estate in the locality
What are the exceptions to the 10% limit on local debt?
Revenue anticipation bonds (paid back from expected taxed already in place within one year)
Special fund bonds (paid down in 5 years or which flow directly from the project to be funded)
Debts arising from civil/criminal judgments; debts from daily expenses, service contracts, ordering of supplies
What are the parameters of the police power?
Subject to normal constitutional limits on vagueness, taking of property and the like, in the exercise of its police power, the locality may adopt such rules and regulations as are reasonable and necessary for the protection of its inhabitants. Although this power is almost unlimited, it must relate to the health, safety, morals, and welfare of the inhabitants of the state and must not be arbitrary, discriminatory, or unreasonable.
What is the general rule for (and exception to) the power to tax?
Localities generally have the power to levy taxes for public purposes.
Localities may not impose an income tax, which means that most of the funding for local government in Virginia comes from property taxes.
May localities grant licenses based on gross receipts?
Yes. While license taxes are often based on gross receipts of an activity, this is held to be distinct from imposition from an income tax by the local body, and is valid.
