Powers of Local Govts Flashcards
What is the “general rule” for powers of local governments?
No powers unless conferred in the charter!
What powers do almost all localities have?
- To tax (normally: real property, or local sales taxes);
- 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.
Is redelegation limited or unlimited?
Limited.
Powers conferred by the charter and statutes must generally be discharged by the governing body of the locality.
What is “Dillon’s Rule?”
States that 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
- the implied power is essential and indispensable to the declared purposes for creating the locality.
Uniform Charter Powers Act
Permits the legislature to provide that “approved” cities and towns may exercise all powers not expressly prohibited by the constitution or general laws that are necessary or desirable to promote the general welfare of the inhabitants.
What happens when the legislature grants a local government the power to do something, but does NOT specifically direct 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.
Any doubt in reasonableness will be resolved in favor of the locality.
Procedure: Power to Incur Debt
A ballot vote or special hearing must be held before bonds may be issued by a locality.
There is an optional declaratory-judgment procedure to validate bonds.
No locality may issue general obligation bonds in excess of ____ of the assessed valuation of real estate subject to taxation in the locality.
10%
What are the exceptions to the 10% debt ceiling?
- Revenue anticipation bonds
- Special fund bonds
- Projects where payment will come from assessments levied upon the property benefited by an improvement
- Debts arising from civil and criminal judgments against the locality
- Debts from daily expenses, continuing service contracts, or the ordering of supplies.
revenue anticipation bonds
are to be paid back from expected taxes already in place within one year are not subject to the 10% debt ceiling
special fund bonds
will be paid down in 5 years or the payment of which will flow directly from the project to be funded are not constrained by the 10% ceiling on general debt
Localities police power
Power is almost unlimited, but must relate to the health, safety, morals, and welfare of the inhabitants of the state and must not be arbitrary, discriminatory, or unreasonable.
Taxation power
Localities generally have the power to levy taxes for public purposes, but may NOT impose an income tax!
Do localities have the power to license?
Yes, generally have the power to license any business, occupation, or activity.
What are license taxes based on?
License taxes are often based on gross receipts of an activity, which is why it is held to be separate and distinct from the imposition of an income tax (which would be invalid)
