Background of CLG Created in 1979 Commission on Local 5 member - PDF document

2/28/19 Background of CLG • Created in 1979 Commission on Local • 5 member commission appointed by the Governor Government: • 5 year terms • 3 staff members Annexation Alternatives • Merged into DHCD in 2003 • R. Michael Amyx, Chair – Virginia Municipal League • Rosemary M. Mahan, Vice-Chair – Westmoreland County Virginia Local Government Management Association • Diane M. Linderman, PE – City of Richmond February 21, 2019 • Kimble Reynolds, Jr. – City of Martinsville Diane M. Linderman, PE J. David Conmy • Vacant Seat Purpose of CLG Duties of CLG 1. Boundary adjustments, local transitions, and It is the purpose and intent of the General interlocal agreements Assembly to create a procedure whereby the 2. General Assembly Session Commonwealth will help ensure that all of its localities are maintained as viable communities 3. Mandates Catalog and Assessments in which their citizens can live. To carry out this 4. Cash Proffers purpose and intent, there is hereby established 5. Fiscal Stress the Commission on Local Government. (§ 15.2- 6. Various requested studies (consolidation 2900, Code of Virginia) incentives, annexation, local salaries, etc.) Study Directive Stakeholders & Partners • Chapters 158 and 364, 2016 Acts of Assembly • David Blount, TJPDC • Dr. John Moeser, U of R • C. Richard Cranwell, Cranwell • Kimball Payne, Lynchburg and • Moratoria extended until 2024 and Moore Spotsylvania County • Commission on Local Government to: • Carter Glass, IV, Troutman • Jim Regimbal, Fiscal Analytics Sanders • Jeff Sharp, DLS 1. Evaluate the structure of cities and counties in the • Michelle Gowdy, VML commonwealth; • Brian Thrower, Emporia • Kelly Harris-Braxton, VA First 2. Evaluate the impact of annexation upon localities; • David Whittington, Greensville Cities County 3. Consider alternatives to the current moratorium on • Kurt Hodgen, Harrisonburg • Thomas Jefferson PDC annexation by cities; and • Stephen King, Rockingham • Central Shenandoah PDC 4. Consult with and seek input from the Virginia Municipal County • VHDA League, Virginia Association of Counties and localities • Joe Lerch, VACo directly affected by moratorium 1

2/28/19 Exploration of Initial Thoughts how we got here • Go for money, not land. • History of local government in the Commonwealth • The likelihood of lifting the annexation moratoria in • Mandated service delivery and proximity the Commonwealth is low. • Urban services and original positive nature of • Healthy, viable local governments are critical to the municipal annexation well-being of the Commonwealth. • Independence of cities • A harmonious and successful relationship between • Urbanization of counties and social/civil rights issues and among the Commonwealth and its localities that altered traditional view of annexation ensures greater health, welfare, and prosperity for • Annexation wars, the moratoria, and compromise all of the Commonwealth’s citizens and businesses. • Burden on some localities and fiscal stress 2

2/28/19 Mandated Services Annexation • 1634 • Present Day • Urban Services • Reasons to Annex: – Extension of services – County Court – Constitutional – Water – Communities of interest Officers – Sheriff – Sewer – Developable land – Judicial – Clerk – Solid Waste – Tax base Administration – County Lieutenant – Community – Citizen request – Elections Development – Uniformity – Public Safety – Police – Others? – Health and – Public Works • HOWEVER, annexation in the context of independent cities removes such Welfare – Parks & territory from counties permanently. – Community Recreation • Annexation is also no longer a possibility for many cities or may no longer Development be a desirable option. – Education • Annexation may also no longer solve local needs Fiscal Stress • Mandated service delivery + weak economic base = above average or high fiscal stress • A measure of a city or county’s ability to generate additional revenues from its tax base relative to the rest of the Commonwealth • Relative index equally weighting 3 variables: – Revenue Capacity per capita – Revenue Effort per capita – Median Household Income 3

2/28/19 Regional Matters • Urbanized development patterns outgrowing traditional cities • Communities of interest and local boundaries that do not reflect commerce and population patterns • Evolving service demands that may be more appropriately addressed at a regional/interlocal level, especially from a fiscal perspective • General bifurcation of the Commonwealth 4

2/28/19 Recommendations: Recommendations: Overall Structural • Make the moratoria permanent in tandem • Modify reversion and consolidation statutes to remove obstacles. with other recommendations that could help • Make reversion and consolidation more cost- address matters of more efficient service effective through incentives. delivery, fiscal stress, and regional needs • Grant additional powers to counties through • Could lead to more serious exploration of reversion and other interlocal agreements. other solutions that could otherwise be • Evaluate mandated service delivery methods to overlooked due to the distraction of regularly identify appropriate service level. extending of the moratoria • Relax the requirements for the establishment of joint authorities and special districts. Recommendations: Outcome and Status Fiscal • Provide planning grants to explore interlocal • Report adopted by CLG on 11/8/2019 • House Bill 2450 (Wilt) with accompanying budget amendment agreements and other operational was introduced during Session, but was pulled by the patron efficiencies. • Bill addressed: • Evaluate adequacy of local fiscal resources to – Making the moratoria permanent, identify enhancements. – Creating a Local Government Efficiency Analysis Fund, – Addressing the semantics of independent and dependent cities, • Create or expand programs to reduce local especially as it relates to reversion, and – Providing for an optional advisory referendum before local fiscal stress. governments undertake the consolidation process • Incentivize additional regional cooperation • Work on additional local concerns before 2020 General Assembly Session and regional programs. Questions? https://rga.lis.virginia.gov/Publis hed/2018/HD11 5