Memorandum

City of Lawrence

City Manager’s Office

TO:              David L. Corliss, City Manager

CC:               Cynthia Boecker, Assistant City Manager

                   Toni Wheeler, Director of Legal Services

FROM:          Diane Stoddard, Assistant City Manager

DATE:           November 29, 2007

RE:               2008 State Legislative Policy

At the City Commission meeting on November 27, 2007, the Commission provided feedback on items to include as part of the draft 2008 State Legislative Policy Statement. Changes to the 2008 State Legislative Policy Statement are highlighted within the document.

Following is a list of items that were mentioned and staff follow-up.    

• Arizona revenue sharing program/income tax to municipalities:  Commissioner Highberger requested information about the Arizona program that involves a transfer of some income tax revenues to cities.  Attached is an issue briefing paper from the Arizona Senate which summarizes various Arizona State Shared Revenue Programs, including the Urban Revenue Sharing Program, which is the program that involves income tax monies.

• Taping of executive sessions:  Commissioner Highberger requested information on the bills on this topic introduced in the Legislature.  Two bills (Bill No. 2085 and Bill No. 2054) were introduced last session on this topic requiring taping of executive sessions under certain circumstances; hearings were held but no further action taken. The   League of Kansas Municipalities testified in opposition of both bills.  League staff anticipates similar bills being introduced this session, though no bills have yet been pre-filed on this subject. 

• Stronger language on drinking establishment licensing/regulation:  Mayor Hack requested that the language from the 2007 State Legislative Policy Statement be strengthened.  Staff has redrafted new language for the 2008 Statement on page 3.

• State financial assistance for levee work:  Mayor Hack asked that we request additional assistance for unfunded mandates related to the levee.  Staff added language in the unfunded mandates section on page 4.

• Property tax impact on senior citizens:  Commissioner Amyx requested that the City look at ways to assist seniors on fixed income with rising property tax burdens.  Language is included in the document on page 1 to address this issue.

• Revenue loss to cities because of the machinery and equipment property tax exemption:  Commissioner Chestnut requested a report regarding the impact on the implementation of the property tax exemption for machinery and equipment used in manufacturing, its impact on City revenues and whether the City has received any offset to this from the State of Kansas as promised to local jurisdictions when the legislation was passed.  The exemption eliminates property taxes on new business machinery and equipment purchased after July 1, 2006. Additionally, the law provides for a “reimbursement slider" to assist in mitigation of potential revenue losses to local governments.  The slider is 90% the difference for tax year 2007, 70% in tax year 2008, 50% in tax year 2009, 30% in tax year 2010, and 10% in tax year 2011.  Based on information from Douglas County, the City of Lawrence is losing approximately $129,000 annually as a result of the exemption.  According to the League staff, the 2007 slider will be credited in February 2008.    

Following are additional changes initiated by staff for the 2008 State Legislative Policy Statement: 

• Removed section regarding implementation of Governmental Accounting Standards Board Statement 45 (GASB 45), which was implemented at the beginning of 2007.

• Added language regarding need for continued study of sedimentation issues in Kansas Reservoirs given the importance of Clinton Reservoir to the City’s water supply. (page 4)

• Added section on immunity for health care workers related to involuntary blood draws.  Law enforcement  has difficulty in obtaining necessary tests due to ambiguity about health care worker immunity in these cases.  (pages 3-4)  Additional information on this subject is included in the memorandum provided by Scott J. Miller, Staff Attorney.

• Removed section regarding the expansion of the “one-call” system.  The City has since voluntarily joined the state-wide “one-call” system.

• Stated the City’s opposition to the state reducing or redistributing any of the local alcohol tax monies.  (page 3)

• Added statement suggesting that the State examine its method of distributing federal funds to municipal transit providers, which is presently not equitable.  (page 2)

The League of Kansas Municipalities has also finalized its 2008 Statement of Municipal Policy.  This is provided as additional information for the Commission and public. 

The State Legislative Policy Statement is typically discussed as part of a Legislative Breakfast held in conjunction with the Chamber and other local government agencies.  The 2008 event is scheduled for 7:30 am on Tuesday, January 8 at the Chamber. 

Action Requested:  City Staff recommends that the City Commission adopt the 2008 State Legislative Policy Statement, if appropriate.