HomeMy WebLinkAbout02-13-17 CC Mtg - A3. Legislative Update - Supplemental Materials (Distributed at Meeting) 2017 Legislative Session Updates
City Manager Weekly Activity
On Wednesday, February 811, Chris attended a meeting with the Chamber of Commerce to provide them
with information about the Local Option and Gas Tax Bills. In addition to answering any questions, we
provided attendees with information about how to reach local representatives to show their support.
On Thursday, February 9t", Chris spent the day in Helena
On Monday, February 13t", Chris attended a meeting of the League of Women voters to provide them
with information on the Transportation Safety Act and the Infrastructure Investment and Property Tax
Relief Act.
Transportation Safety Act (Gas Tax) — Bill Sponsor: Frank Garner
We learned this week,that the structure of the Gas Tax bill will be changing slightly. Previously it was
proposed that there would be a$.10 increase. However,the suggested increase has been reduced to
$.08 and the Highway Patrol was added in to the distribution.This change reduces the City's share to
$1,634,361.
The Bill is still in legal review and does not have a bill number, so it is unlikely that it will go to hearings
on February 15th. We will communicate with the City commission when it comes out of review and
hearings are schedules.
Infrastructure Investment and Property Tax Relief Act (Local Option) —
Bill Sponsor: Mike Phillips
On Thursday, over lunch,Chris met with Senator Phillips, Senator Barrett,Senator Malek from Missoula,
and Representative Fred Anderson from Great Falls, Representative Grubbs, Representative Knokey and
Representative Fern from White Fish to discuss Local Option.They all expressed interest in helping up
move the bill forward.
Other Bills of Interest
TIF-related Bills-A number of Bills have been proposed to diminish the effectiveness of the TIF districts.
Many of those Bills had hearings this week. We had City staff, our lobbyist Aimee G. and other local
individuals attend hearings in Helena this week showing our opposition to the proposed Bills.
On Wednesday, February 8, Chris Nauman from the Downtown Partnership, Commissioner Jeff Krauss
and Economic Development staff David Fine attended hearings in Helena in opposition of HB 359 and
HB134. HB 359 strips away all property taxes that go to the TIF Districts, except for the City's MIL Levy—
reducing increment revenues 50%to 75%and threatening bond coverage ratios and municipal bond
ratings. HB 134 removes the 95 MILs levied by the State of Montana.
In addition, Greg Dorrington from Crowley-Fleck testified on our behalf regarding SB 188.This bill would
remove the ability for local governments to create a special district by simple resolution.This bill was
supported by MACO,with MLCT, City of Missoula and City of Bozeman opposed.
On Thursday, a representative from Crowley-Fleck testified in opposition to HB 403 on behalf of the
City. HB 403 would put a 5%cap on TIFs. Feedback we received from Crowley-Fleck stated that there
were a number of opponents(including the Governor's Office, MLCT, MACO, City of Kallispell and the
City of Missoula among others) and no proponents of the bill. All opponents general agreed that the bill
was unworkable and would reduce efficacy of the TIFs and limit and arbitrarily limit the type/size of the
TIF projects cities could go after. It was however, agreed upon,that it may be worth discussing whether
sideboards are needed on the TIF program,and if so, what those sideboards might be. Rep Hertz's
stated that the TIF program is ripe for abuse. He claims to have observed it firsthand in Missoula.While
we do not see HB 403 moving forward this session, it may become a study bill and these issues may
continue to be discussed during the interim, with proposals for next session.
On Friday, February 101h, Brit Fontenot testified in opposition to HB 411 and HB 413. No final verdicts
were made with regards to these bills and they are expected to be revisited next week. Look for more
information on these bill in next week's update.
Water Bill: HB424—There was a hearing today(Monday, February 13th) regarding HB424—a bill
proposing to recognize source watersheds as a water resource. Our lobbyist Aimee Grmoljez was able to
speak on our behalf. In addition,with Lain Leoniak's assistance, she was able to get a representative
from the Wood Products Industry to speak in favor of the bill.