HomeMy WebLinkAboutUnit 3 – The Charter Form of Government
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LOCAL GOVERNMENT REVIEW STUDY COMMISSION GUIDE
UNIT 3: THE CHARTER, A CHOOSE-YOUR-OWN-ADVENTURE FORM
The Charter form is its own distinct and unique alternative form of government AND the written
document needed to establish the Charter form of government. (For clarity’s sake, we’ll capitalize
“Charter” when we’re talking about the form and use a lowercase “charter” when we’re talking about the
written document.) Often described as an add-on to one of the other forms, it’s actually one of the six
unique and distinct forms of local government in Montana and the only form that has the capacity to
integrate chosen aspects of the other forms. Unlike the other five forms, it grants flexibility and freedom
to choose how the executive and legislative branches of local government are structured and the roles
and responsibilities of each. When it comes to the Charter form, things can get confusing. But it’s also
one of the most interesting and flexible forms and trying to wade through some of the confusion is
worthwhile to fully understand its elegance and potential.
In this unit, we’ll investigate the aspects of the Charter form that make it so unique, consider its
requirements, and explore common misconceptions about it. We’ll look at the Charter form in statute to
understand what makes it the most unique of the six Forms of government and we’ll explore several
criteria for adopting the Charter form.
We’ve also included examples of current charters as well as several templates for creating the charter
document. We should note that, even with the templates, creating a written charter document is a
detailed and complicated process. Should your study commission decide to recommend Charter adoption
in your final report and need to write one, the Local Government Center can help you navigate that
process.
Learning Objectives:
1. Be able to explain why and how the Charter form is unique and different from the other forms.
2. Understand the required elements of the Charter form.
3. Be able to compare and contrast the Charter with any of the other forms of government and
highlight the key differences.
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What Is a Charter?
In Montana, a charter is the local government equivalent of a state or national constitution although
subordinate to both.
It’s a voter-approved, written plan of government that must include:
• An elected legislative body
• An elected or appointed chief-executive officer or officers
o Term of office if elected or at the pleasure of the governing body if appointed
• Powers and duties of the chief executive
• Grounds for removal from office
• Could provide for a plural executive drawn from the legislative body
A charter defines a local government’s:
• Powers
• Duties
• Rights
• Structures
• Privileges
• Limitations
A charter may specify:
• Any additional officers, departments, boards, commissions, agencies as desired
• Any limitations or prohibitions on the governing body’s exercise of self-governing powers
• Other provisions if they are not contrary to the constitution or law
A charter may not include any provisions that:
• Conflict with state law establishing prohibitions or limitations on the powers of self-governing
units of local government
• Establish elections, initiatives, or referendum procedures
• Establish or modify local court systems
• Establish restrictions or limitations on land use, taxation, alter the rate or standard set by a state
agency, restrict civil or private relationships/contracts, or penalize vagrancy, for example (7-1-
111, MCA).
Charters may only be amended with voter approval, as required by state law.
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What Does a Charter Do?
A charter enables citizens to develop their own locally devised and approved instrument of self-
government. This basic definition holds your first clue to what makes the Charter form unique:
A local government that adopts the form, with voter approval, can write their own plan of
government.
The previous sentence may not sound exciting, but it is. Think about that for a moment. A local
government’s ability to write its own plan of government is something that exists nowhere else in any
other context in the laws of this state. None of the other forms of government allow the flexibility and
adaptability accessible through the Charter form.
The Charter form alone provides this potential, which is why it’s both exciting and complicated. It can
unlock a great deal of potential to modify a local government’s plan to best serve present and future
community needs. But knowing enough about the details of each of the forms to identify the most
successful combinations of executive and legislative roles and responsibilities and having the ability to
clearly communicate them is no simple task.
The complexity of this process is one of the main reasons why, when communities adopt a charter, they
often incorporate the structure of one of the other forms of government into their new charter rather
than come up with new permutations for the structure of their Charter.
In addition, the Charter form is often viewed with suspicion as a means of enhancing governmental
control and authority rather than as a way for communities to take greater ownership over and
responsibility for the health and wellbeing of their local governments and communities.
But let’s look more closely at the Charter form to put all this in context.
You’ve no doubt heard the saying, “the world is your oyster.” When it comes to the forms of government
in the state of Montana, the Charter form is your oyster. It’s the most generous, flexible, and responsive
of the forms.
The 1972 Constitution mandated that the state legislature provide procedures permitting a local
government to “frame, adopt, amend, revise or abandon a self-government charter with the approval of
a majority of those voting on the question” (section 5 of Article XI). The intent was to offer citizens and
units of local government a mechanism to define for themselves what form and plan of government best
suits and serves them now and in the future.
The 1975 Legislature responded to the Constitution’s mandate, incorporating the Charter form state law
and enabling Montanans to devise any arrangement of local governmental structures and functions they
might choose so long as the charter provisions do not violate our federal or state constitution or state
laws.
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What’s Unique About the Charter Form?
The Charter is the only form that differs from the basic model followed by the other forms, all of which
have structural suboptions they can select to modify the plan.
But the Charter form is inherently different. It does not have a statutory default plan. And unlike the
other forms, which designate a specific relationship between the executive and legislative branches, the
Charter form was specifically designed to leave that relationship unspecified so that a unit of local
government, with voter approval, can choose the options that best serve their community.
Let’s take a look at a side-by-side comparison to help illustrate what we’re talking about. We’ll compare
the plan of government for the Charter form with the statutory basis for the Commission-Executive form.
Read through this comparison and keep track of the differences you notice. Then watch the video below
for an explanation of the major differences.
Commission-Executive Form
7-3-201 through 7-3-224
Charter Form
7-3-701 through 7-3-709
7-3-201. Commission-executive form
The commission-executive form (which may be
called the council-executive, the council-mayor, or
the commission-mayor form) consists of an elected
commission (which may be referred to as the
council) and one elected executive (who may be
referred to as the mayor) who is elected at large.
7-3-701. Charter form
1. The purpose of this part is to comply with
Article XI, section 5(1), of the Montana
constitution, which provides: "The
legislature shall provide procedures
permitting a local government unit or
combination of units to frame, adopt,
amend, revise, or abandon a self-
government charter with the approval of a
majority of those voting on the question.
The procedures shall not require approval
of a charter by a legislative body."
2. Charter provisions establishing executive,
legislative, and administrative structure and
organization are superior to statutory
provisions.
7-3-202. Nature of government
The plan of government submitted to the qualified
electors shall determine the powers of the local
government unit by authorizing:
1. general government powers; or
2. self-government powers.
7-3-702. Nature of government
A charter form of government shall possess self-
government powers.
7-3-203. Duties of executive.
The executive shall:
1. enforce laws, ordinances, and resolutions;
2. perform duties required by law, ordinance,
or resolution;
3. administer affairs of the local government;
7-3-703. Charter required
1. Charter form of government shall be
established by a charter which is a written
document defining the powers, structures,
privileges, rights, and duties of the unit of
local government and limitations thereon.
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4. carry out policies established by the
commission;
5. recommend measures to the commission;
6. report to the commission on the affairs and
financial condition of the local
government;
7. execute bonds, notes, contracts, and
written obligations of the commission,
subject to the approval of the commission;
8. report to the commission as the
commission may require;
9. attend commission meetings and may take
part in discussions;
10. execute the budget adopted by the
commission; and
11. appoint, with the consent of the
commission, all members of boards, except
the executive may appoint without the
consent of the commission temporary
advisory committees established by the
executive.
2. The enumeration of powers in a charter
shall not be construed as a limitation or
prohibition on the residual or self-governing
powers granted by the constitution.
7-3-211. Structural suboptions
The plan of government submitted to the qualified
electors shall further define the structural
characteristics of the form by including one item
from each of the choices listed in 7-3-212 through
7-3-224.
7-3-704. Legislative body
1. The charter shall provide for an elected
legislative body (called a commission or
council) or shall provide for a legislative
body comprised of all qualified electors. For
elected legislative bodies, the charter shall
specify the number of members thereof,
their term of office, election on a partisan or
nonpartisan basis, the grounds for their
removal, and the method for filling
vacancies.
2. The charter shall provide for the nomination
and election of commissions:
a. at large;
b. by districts in which candidates must reside
and which are apportioned by population;
c. by a combination of districts, in which
candidates must reside and which are
apportioned by population, and at large; or
d. elected at large and nominated by a plan of
nomination that may not preclude the
possibility of the majority of the electors
nominating candidates for the majority of
the seats on the commission from persons
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residing in the district or districts where the
majority of the electors reside.
7-3-212. Administrative assistants
The executive:
1. shall appoint one or more administrative
assistants to assist in the supervision and
operation of the local government, and the
administrative assistants are answerable
solely to the executive; or
2. may appoint one or more administrative
assistants to assist in the supervision and
operation of the local government, and the
administrative assistants are answerable
solely to the executive.
7-3-705. Officials and personnel
1. The charter must specify which official of
the local government will be the chief
administrative and executive officer, the
method of the officer's selection, the term
of office (except that it may be at the
pleasure of the selecting authority if the
officer is not elected by popular vote), the
grounds for the officer's removal, and the
officer's powers and duties. However, the
charter may allocate the chief executive and
the chief administrative functions among
two or more officials specified as provided
in this section, or the charter may provide
that chief executive and administrative
functions of the local government will be
performed by one or more members of the
legislative body.
2. A charter form of government must have
the officers, departments, boards,
commissions, and agencies that are
established in the charter, by local
ordinance, or required by state law.
7-3-213. Supervision of personnel
The executive may:
1. appoint and remove all employees of the
local government;
2. appoint and remove, with the consent of a
majority of the commission, all employees
of the local government;
3. appoint, with the consent of a majority of
the commission, all department heads and
remove department heads and may appoint
and remove all other department
employees; or
4. appoint and remove, with the consent of a
majority of the commission, all department
heads and appoint and remove all other
employees of the local government.
7-3-706. Effective date
The charter shall specify the date on which the
charter will take effect, except that provisions may
be made for temporary partial effectiveness
consistent with an orderly transition of
government.
7-3-214. Veto power
The executive may:
7-3-707. Other charter provisions
1. The charter may establish other legislative,
administrative, and organizational
structures.
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1. veto ordinances and resolutions, subject to
override by a majority plus one of the whole
number of the commission;
2. veto ordinances and resolutions, subject to
override by a two-thirds vote of the
commission; or
3. sign all ordinances and resolutions with no
veto power.
2. The charter may contain prohibitions on the
exercise of power by a unit of local
government.
3. The charter may include such provisions as
may be necessary to permit an orderly
transition to the new form of government.
4. The listing of charter provisions in this part
shall not be construed to prevent the
inclusion of additional provisions in
charters.
7-3-215. Preparation of budget
The executive may:
1. prepare the budget and present it to the
commission for adoption; or
2. prepare the budget in consultation with the
commission and department heads.
7-3-708. Limitations on charter provisions
1. Charter provisions may not conflict with the
provisions of part 1, chapter 1, which
establish statutory limitations on the
powers of self-government units.
2. Charter forms are subject to state laws
establishing election, initiative, and
referendum procedures; and charters shall
not contain provisions establishing election,
initiative, and referendum procedures.
3. The charter shall not contain provisions
establishing or modifying local court
systems.
7-3-216. Administrative supervision and control
The executive may:
1. exercise control and supervision of the
administration of all departments and
boards; or
2. exercise control and supervision of all
departments and boards to the degree
authorized by ordinance of the
commission.
7-3-709. Amendment of charter
A charter may be amended only as provided by
state law.
7-3-217. Financial officer
A financial officer (who may be called the
treasurer):
1. shall be elected;
2. shall be appointed by the executive with the
consent of the council;
3. shall be selected as provided by ordinance;
or
4. may, at the discretion of the commission, be
selected as provided by ordinance.
7-3-218. Selection of commission members
The commission shall be:
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1. elected at large;
2. elected by districts in which candidates
must reside and which are apportioned by
population;
3. elected at large and nominated by a plan of
nomination that may not preclude the
possibility of the majority of the electors
nominating candidates for the majority of
the seats on the commission from persons
residing in the district or districts where the
majority of the electors reside; or
4. elected by any combination of districts, in
which candidates must reside and which are
apportioned by population, and at large.
7-3-219. Type of election
Local government elections shall be conducted on
a:
1. partisan basis; or
2. nonpartisan basis.
7-3-220. Presiding officer of commission —
selection
The commission must have a presiding officer who
must be:
1. elected by the members of the commission
from their own number for a term
established by ordinance; or
2. selected as provided by ordinance.
7-3-221. Presiding officer of commission — voting
The presiding officer of the commission:
1. may vote as other members of the
commission;
2. is the executive, who may vote as the
commissioners;
3. is the executive, who shall decide all tie
votes of the commission but may not have
another vote (the presiding officer of the
commission shall preside if the executive is
absent); or
4. is the executive but may not vote.
7-3-222. Terms of commission members
Commission members shall be elected for:
1. concurrent terms of office; or
2. overlapping terms of office.
7-3-223. Size of commission and community
councils
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The size of the commission, which shall be a number
not less than three, shall be established when the
form is adopted by the voters, and:
1. community councils of at least three
members shall be elected within each
district to advise the commissioner from
that district. Local governments conducting
elections at large shall district according to
population for the purpose of electing
community councils; or
2. community councils to advise
commissioners may be authorized by
ordinance.
7-3-224. Terms of elected officials
The term of office of elected officials may not
exceed 4 years and shall be established when the
form is adopted by the voters.
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Limitations on Expanded Governing Powers
One of the most important characteristics and advantages of the Charter is its ability to include specific
constraints on a local government’s governing authority because self-governing powers are gained
automatically at Charter adoption.
A charter can and should reflect any limitations thought to be necessary by a community wishing to gain
the inherent flexibility of self-governing powers. Communities wishing to acquire a greater degree of local
flexibility by acquiring self-governing powers without the benefit of a charter would be unable to impose
any local limitations on the governing powers of their municipal or county government.
It is important to consider if any limitations on these expanded governing powers need to be specified in
the local charter. While most charters include no limitations, many do.
The most common limitation is imposed on the taxing authority of the local government. Even though the
legislature has, since the adoption of the 1972 Montana Constitution, increasingly limited the taxing
authority of local governments, a number of charters have included additional taxing limitations such as:
specific property tax mill levy limits (Billings); limiting taxation authority to that of general powers local
governments, ( i.e. those local government units without self-government powers); or requiring voter
approval of any new taxes (Anaconda-Deer Lodge). (To clarify, the only changes to taxation a Charter can
implement are to add additional restrictions. As mentioned in the previous unit, no part of the Voter
Review process has legal authority to change tax laws.)
Even if a community finds no reason to impose limitations on their local government when the Charter is
adopted, having a voter approved charter permits the incorporation of any future limitations thought
necessary by means of a voter approved amendment.
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Advantages of the Charter Form
As we’ve mentioned, the adoption of a Charter creates a statutorily defined alternative form of local
government even though the structural characteristics of that government set forth in the charter may
simply replicate any one of the other five familiar forms.
On a practical level, the charter’s flexibility to define the roles, powers, and responsibilities of the
executive and legislative branches is one of its primary advantages and can bring greater clarity and
prevent uncertainty and conflict in the roles and working relationships of the local government officials.
Let’s be honest. The general statutes that define the roles, responsibilities, and relationships between the
commission, the chief executive, and various departments are often ambiguous at best and frequently
downright opaque. Without the clarity that comes from the ability to define those roles, local
government officials are left to their own devices when trying to interpret their own statutorily defined
roles and responsibilities and the appropriate relationship between the legislative and executive
branches. The potential for uncertainty and conflict is high. And, as we saw in Unit 2, uncertainty and
conflict can stymie the effective workings of local government faster than almost anything else.
Rather than having to rely on the vague and ambiguous definitions of various roles and responsibilities, a
charter’s capacity to create clear definitions and expectations can also make it a useful tool for educating
new and experienced elected officials and community members about appropriate expectations and
responsibilities for officials in those roles.
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Setting Limits on the Charter Form
It's important to consider not only the possibilities of the Charter form, but also what limitations may
need to be specified on the expanded governing powers. This ability to impose local limitations on a
municipality or county’s governing powers is unique to the Charter form.
The charter’s potential for locally determined possibilities and limitations are both advantages in different
ways. As long as the charter does not include provisions prohibited by the state constitution, laws, or the
charter itself, does not conflict with statutory prohibitions or limitations on self-governing powers, does
not meddle with election, initiative, or referendum procedures, or attempt to establish or modify the
local court system, a charter’s provisions can offer a tremendous amount of flexibility, limited only by the
imaginations of those writing the charter.
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The Future-Oriented Charter
One of the most distinct advantages of the Charter is its inherent future-oriented capabilities. Think about
the flexibility to broaden or limit powers in response to future unknown developments in the community
or region. But, as with most aspects of the Charter form, this feature is also one of its complexities. We
can’t predict the future and, while we can prepare for a variety of contingencies, there’s no way to know
exactly what a community will need 30 years, 50 years, even 100 years into the future.
The Charter form is no crystal ball, but it does offer mobility and flexibility to adapt to change that can
serve a community well in the face of future unknowns. Consider an example from the city of Helena.
In 2002, the city of Helena instituted a city-wide ban on smoking in all public buildings. The ban was
contested in a round of legal battles. But in 2004, the state supreme court upheld the city’s ban.
The court’s rationale explained that Helena’s self-governing powers, adopted in the first Voter Review
cycle, permit a local government to exercise any power not prohibited by the legislature. Smoking bans
were not explicitly prohibited, and the court’s ruling acknowledged the city’s right to implement the ban.
The citizens of Helena took an active role in the first review process and voted for self-governing powers.
Forty years later, that change gave the city’s government flexibility to respond to an issue of growing
concern for many citizens. In fact, so many communities followed Helena’s example, that the state
legislature codified the Montana Clean Indoor Air Act in 2005.
This example illustrates the potential of the entire Local Government Review—grassroots governance;
opportunities for local government leadership to influence state government; and lively multidirectional
responsiveness at local and state levels to the needs of Montana’s communities.
But potential benefits from the Charter form aren’t always theoretical, future possibilities. Concrete,
practical, and more immediate benefits are also possible.
Several innovative municipalities (mostly larger, city manager cities) with self-governing powers derived
from their charters, successfully implemented services on behalf of their citizens made possible by the
greater governing flexibility bestowed by their charters. For example: Billings expanded its solid waste
service area; Great Falls gained greater authority to dispose of public lands; Helena and Billings
implemented local development fees; Anaconda-Deer Lodge altered its organizational structure; Libby,
Troy, and Saco provide an additional utility service not previously authorized by the legislature; and the
Attorney General decided that Butte-Silver Bow could lawfully acquire and operate electric and natural
gas utilities within and outside the boundaries of its jurisdiction.
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Unit Conclusion
With the powers, forms, and plans of government under your belt, we can move into the practical
application of this information in your role as study commissioners. In the next unit, we’ll demystify the
process of researching, evaluating, and comparing your unit of local government that you’ll engage in as
you perform your study commission mandate. We’ll move from the theoretical to the practical and
suggest several methods of approach for evaluating your local government.