Local Governments Chapter 3 Copyright © 2016 Cengage Learning. All rights reserved. 1 Learning Objectives 3.1 Explain the relationships that exist between a local government and all other governments, including local, state, and national governments. 3.2 Describe the forms of municipal government Copyright © 2016 Cengage Learning. All rights reserved. organization. 2 Local Politics in Context § Local Governments and Federalism § Cities, counties, and special districts § Are on the bottom rung of the government ladder § Dillon’s Rule-local governments have only those powers granted by their state government § Cooley Doctrine-local government is a matter of absolute right; and the state 3 may not take it away Local Politics in Context § Local Governments and Federalism § Local governments face mandates from both the national and state governments. Some are funded by the higher levels of government, but some are not (providing access to the disabled) § Almost 5,000 local governments § Territories often overlap 4 Local Politics in Context § Grassroots Challenges § More than 80% of Texans reside in cities. Concerns of crime, infrastructure (roads streets and bridges, public schools and threat of terrorism § Providing access to public services for all communities § § SpeakupAustin! social media portal Widespread voter apathy § Typical to have fewer than 10% voter participation 5 Local Politics in Context § § § Questions: Do local governments have more flexibility to make their own decisions under Dillon's Rule or the Cooley Doctrine? Which one does Texas follow? Are intergovernmental relations marked by conflict, cooperation, or 6 both? Municipal Governments § Legal Status of Municipalities § Two legal classifications § General law a municipality with a charter prescribed by the legislature (900) . If population exceeds 5000, must petition to become a home rule city. Not automatic. Charter prescribed by general law enacted by the general legislature (state) § Dillon's rule- Local governments can do only those things permitted by the state 7 Municipal Governments § Legal Status of Municipalities § § Two legal classifications Home-rule cities (locally drafted charter) § § A city of more than 5,000 may be incorporated as a home rule city. Must vote to become a city 350 home rule cities, many small, but most larger cities tend to have home-rule charters ( Houston) § Greater flexibility in structure and operation 8 Municipal Governments § Legal Status of Municipalities § Greater flexibility in structure and operation can be seen through the city charter, which are unique to the homerule cities. They are the following: § Establish powers of municipal officers § Set terms of office for council members § Provide procedures for passing ordinances (laws) within the city (not for all Texans in the state 9 Municipal Governments § Legal Status of Municipalities § Home-rule cities § Three powers not held by general-law cities and are held by home-rule cities • • Recall- removing elected officials through a popular vote Initiative-a citizen drafted measure proposed by a specific number or percentage of qualified voters which becomes law if approved by popular 10 vote. Municipal Governments § § Legal Status of Municipalities Referendum- A process by which issues are referred to the voters to accept or reject. Voters may also petition for a vote to repeal an existing ordinance. § Red-light cameras § Changing the election system 11 Municipal Governments § Forms of Municipal Government § Strong mayor-council- Houston § Separately elected legislative body (council) ( Houston(16): 5 at large, 11 elected from single districts) § Mayor is the executive head § Mayor elected at large (everyone in city is able to cast ballot) with the power to appoint and remove department heads: fire and police 12 Municipal Governments § Forms of Municipal Government § Mayor has power to veto ordinary majorities in city council § Budgetary power(preparation and execution of a plan for raising and spending city money) exercised by the mayor, subject to council approval before the budget and may be implemented § In Houston, the strong mayor aided by a strong appointed chief of staff and an 13 elected controller Municipal Governments § Forms of Municipal Government § Advantage: best form for large cites because it provides strong leadership in a diverse community and is more likely than the councilmanager form to be responsive to the full range of the community. People know who to go to if something goes wrong (accountability) 14 Municipal Governments § Forms of Municipal Government § Weak mayor-council § § § Mayor has limited administrative powers City council can override mayor’s veto Smaller cities more likely to have a weak-mayor council form 15 Strong Mayor-Council Form of Municipal Government (Houston) 16 Municipal Governments § Forms of Municipal Government § Council Manager § Most home-rule cities use (Dallas, San Antonio El Paso) council manager form. Houston, though a home rule city is the exception with the strong mayor form § City council members elected at large or in single member districts (Dallas all are single member) to make general policy for the city. 17 Municipal Governments § Forms of Municipal Government § Council Manager § § A mayor, elected at large, who is the presiding member of the council but who generally has few formal administrative powers and votes on general policy with the city council members Under the council-manager form, the mayor and city council makes decisions after debate on policy issues, such as taxation, budgeting, annexation, and services 18 Municipal Governments § Forms of Municipal Government § Council Manager § § Elected city council hires and appoints a manager (can also fire him) to coordinate budgetary matters and supervise administrative departments (hires/fires) Weakness: The lack of a leader to whom citizens can bring demands and concerns (accountability).Powers are diffused so hard to pin down who is responsible for the 19 decision Municipal Governments § Forms of Municipal Government § Council Manager § Mayor weak, city council composed of a number of members (who might be interested in their own areas instead of entire city) § manager is supposed to “stay out of politics” § According to book, the council-manager cities respond to elite and middle-class rather than working class concerns 20 Municipal Governments § Forms of Municipal Government § Council Manager § Works well in cities where most people are of the same ethnic group and social class, and thus share common goals. Few central cities fit. 21 Council-Manager Form of Government (San Antonio, 2014) Copyright © 2016 Cengage Learning. All rights reserved. 22 Municipal Governments § Forms of Municipal Government § Commission § A type of municipal government in which each each government department is the responsibility of a single commissioner. Commissioner is a member of the city's policymaking body, but also heads an administrative department (e.g. public safety with police and fire division. Used in Galveston (1900). Lacks a single executive. Very few use this form of gov. 23 Municipal Governments § Forms of Municipal Government § Questions: § Name the two legal classifications of cities in Texas and indicate which has more flexibility in deciding its forms and the way it operates § Which form of municipal government is most common in Texas's larger homerule cities? In smaller cities? 24 Municipal Politics § Municipal Politics § Rules make a difference § Nonpartisan elections (no party labels) § At-large, single-member, and cumulative § Low voter turnout § More personal/less issue oriented § Redistrict after every 10-year census § Ways to organize municipal elections 25 Municipal Politics § Politics § Ways to organize municipal elections § § At-large elections-members of a policymaking body, are elected on a citywide basis rather than from single-member districts Single-member district elections-voters in an area (council district) elect one representative to serve on a policymaking body. (also state House and state Senate, and US representative; US senate entire state) 26 Municipal Politics § Politics § Ways to organize municipal elections § § Cumulative voting- In an at-large election, voters cast one or more of the specified number of votes for one or more candidates in any contamination (Ex. 8 candidates vie for 4 positions for on city council a person can cast or all votes for candidate A. Redistricting-Redrawing boundaries after the federal decennial (every 10 years) census to create districts with approximately equal 27 population Municipal Politics § Politics § Ways to organize municipal elections § § Home-rule cities may also determine whether to institute term limits for their elected officials Bill White 3 two year terms (6)/San Antonio 4 two year terms(8) 28 Municipal Politics § Socioeconomic and Demographic Changes § Increasing levels of urbanization, education, and economic development has made state more diverse § Houston most diverse political system § Dallas serious black-white racial tensions but changes in election rules have increase the number of racial minorities on city council § South Texas has Latino leaders at all levels 29 § Municipal Services § § Government’s major job is to provide services . . . § Police and fire protection § Water and streets § Sewer and sanitation § Parks and recreation Over time, many Texas cities have added 30 libraries, airports, hospitals, clinics, § Municipal Services § Scarce resources (money) of local governments increase competition between traditional services and newer services demanded by citizens or the state and national government ( homeless, job training providing elder service) 31 § Municipal Services § Zoning has received more opposition in Texas than most other states (Houston) but the city does help enforce deed restrictions that protect neighborhoods and uses its control of access to utilities to control and direct growth § Development is also governed by city codes that address how property can be subdivided/Requirements on lot size and 32 minimum parking § Municipal Government Revenue § Low levels of state assistance; local governments hurt by “Great Recession” § Two largest tax sources- (property tax, sales tax) are limited by state law. Produce inadequate increases in revenue as the population grows and are regressive (heavier burden on those who make less money) § Increased monies at times but also increased services (recent growth) 33 Municipal Politics § § § Municipal Government Revenue Property Tax (value of property) tax per $100 of the property's value. Pay to city, county, school district and other special districts The other major source of city tax revenue is the 1/1/4-2 percent sales tax that is collected with the state sales tax (6.25). Ex. $6.25 +2.00(city and metro)=8.25 34 § § § Municipal Government Revenue Sales tax fluctuates with the local economy/2% percent limit the state imposes on local governments The hotel occupancy tax is another significant source of revenue for cities with tourism or major sports events/Superbowl 35 § § § Municipal Government Revenue Fees- Charges for services and payments required by an agency upon those subject to its regulations User fees allow to provide services with only a small subsidy from the general revenue 36 § § Municipal Government Revenue Levy fees on (beer and liquor licenses, franchise fees on gross receipts of public utilities (telephone and cable television companies), water rates, building fees (building permits) traffic fines, sewage treatment garbage collection, hospital care, and the use of city recreation facilities 37 Municipal Politics § § Municipal Government Revenue Bonds and Certificate of ObligationThough taxes and fees normally produce enough revenue to allow cities to cover dayto-day operating expenses, general obligation municipal bonds(redeemed from general revenue) is a mechanism by which governments borrow money; used for large capital improvements (construction of city buildings, parks, airports,emergencies/flood or hurricane damage/ Redeemed over 1-30 38 years. /voter approval Municipal Politics § Municipal Government Revenue § Bonds and Certificate of Obligation- § Certificates of obligation § Does not require voter approval § § Used for smaller amounts and short-term financing/maturity 15-20 years Redeemed from revenue obtained from the property or activity finance by the sale of the bond (not from the general 39 § Municipal Government Revenue § Property Taxes and Tax Exemptions § § Homestead exemption-Up to a 20% homestead exemption on the assessed value of their home to offset the burden of higher taxes resulting from reappraisals of property values/ Additional homestead exemption for disabled veterans/65 years of age Freeze property taxes for senior citizens and disabled/ 2013 cost city $43.9 billion 40 § § § § Municipal Government Revenue Bottom Line (increasing property tax rates, municipal governments sometimes refrain from increased spending, cut services or programs, or find new revenue sources Create new fees or raise fees on services such as garbage collection Impose hiring and wage freezes for municipal employees 41 § § Municipal Government Revenue Cut services (such as emergency room) that are especially important for inner-city population § Contact with private firms for service delivery § Improve productivity, technology 42 One Home but Property Taxes from Four Governments (An Example from Walker County on a Home with an Appraised Value of $120,220; Taxes Paid in January 2014) Copyright © 2016 Cengage Learning. All rights reserved. 43 § Generating Revenue for Economic Development § State and federal appropriations shrinking § Dilapidated housing, infrastructure sewers and streets, combat decay § Attract businesses to blighted inner city areas with tax incentives; Tax reinvestment zones (TRZs) 44 § § § § Questions: Which of the following election forms tend to increase the representation of minorities in local government: non-partisan elections, redistricting, at-large elections, single member district elections or cumulative voting? What are the two largest tax sources that provide revenue to local governments? Do these taxes usually provide enough revenue for local governments to meet the demands place on them? 45 Counties § 254 counties (map) § Overview: § County- serves as an administrative arm of the state that provide important services, though their activities are heavily shaped by whether they are in rural or metropolitan areas § Focuses more on the needs of rural residents and people living in unincorporated suburbs who do not have city governments 46 Counties § Enforce state law, automobile license, registers voters, conducts elections, collects certain taxes, and helps administer justice(sheriff and county courts) § In conjunction with state and federal governments, the county conducts health and welfare programs (Ben Taub and health clinics), maintains records of vital statistics ( births and deaths), issues various licenses, collects fees, and provides a host of other public services(Bexar; digital library) 47 Counties § Structure and Operation § As required by the state constitution,all Texas counties have the same basic government structure, despite wide demographic and economic differences. § Harris County 4 million residents and Loving county 82 residents § Commissioners Court- Texas Constitution provides for the election of four county commissioners and a county judge. Administrative and legislative (not judicial) 48 Counties § Structure and Operation § County Judge- elected county wide and presides over commissioners court and has same voting strength as the 4 other commissioners § Four commissioners are elected from county commissioner's precinct (elected from their respective single member precincts). Not elected county wide 49 Counties § Structure and Operation § Much of the county judge's power and influence comes from his or her leadership skill from playing a lead role in the commissioners court's budge decision power. No authority over other elected county officials § Has administrative responsibility for most county agencies not headed by another elected official 50 Counties § Structure and Operation § Court's functions: § Adopting the county budget and setting tax rates ( great source of power and influence over other county officials) 51 Counties § Structure and Operation § Court's functions: – County judge, prepares the budget, the commissioners court is responsible for final adoption of an annual spending plan (enhances the commissioners court's power within county government). They all vote to adopt the budget (each commissioner and the one county judge) 52 Counties § Structure and Operation § Overview of Services § Providing a courthouse, jails,and other buildings § Maintaining county roads and bridges (“road commissioner”) Very important in rural areas § Administering county health and welfare programs § Administering and financing elections (general and special elections for the nation, state and county § County decentralized and fragmented 53 Counties § Structure and Operation § County Attorney Electedrepresents the county in civil and criminal cases ( more civil; people who don't pay property taxes, criminal is usually taken care of by the 54 Counties § Structure and Operation § District attorney Elected- prosecutes criminal cases (felonies) gives advisory opinions and represents the county in civil cases. Leadership they provide to local law enforcement § County Sheriff Elected- law enforcement in unincorporated areas (city has own police force). Responsible for maintaining the county jail/bailiffs 55 Counties § Structure and Operation § Law Enforcement and Judges § In smaller counties constitutional county judge handles probate matters, small civil cases, and misdemeanors § In larger counties, county judges involved with their political, administrative, and legislative roles so little time for judicial functions. So they have Statutory county courts; created by the legislature to handle 56 the civil and criminal jurisdiction Counties § Structure and Operation § Law Enforcement and Judges (cont) § District court (more serious crimes; felonies) District clerk- maintains records for the district courts. § Justices of the peace courts (1-8 depending on size). Can be abolished by commissioners court. Minor civil and criminal cases, a lot of traffic cases, including small claims court. “People's court”( smaller counties can be the coroner and magistrate (set bail) 57 Counties § Structure and Operation § Law Enforcement and Judges (cont) § Constables- a citizen elected to assist the justice of the peace by serving subpoenas and other court documents. In some cases carrying out security and investigative responsibilities 58 Counties § Structure and Operation § County Clerk- Elected to perform clerical chores for the county courts and commissioners court, keep public records, maintain vital statistics, and administer public elections 59 Counties § Structure and Operation § County Tax Assessor-Collector- § Elected § No longer assesses property for taxation (county wide tax appraisal district ) but does collect taxes (property taxes) and fees (license tag fees for motor vehicles and fees for handicapped parking permits) and commonly handles voter registration ( goes back to the poll tax) 60 Counties § Structure and Operation § Treasurer- An elected official who receives and pays out county money as directed by the commissioners court. Some counties have eliminated the office (Tarrant and Bexar) (Elected) § Auditor- A county of 10,000 or more must have a county auditor appointed by the county's district court judges. Some areas auditor pays and audits; conflict of interest 61 Counties § Structure and Operation § County- All the individuals just discussed ( except the auditor who is appointed) are elected county wide, (except the commissioners who are elected from a commissioner's precinct) every 4 years in even years in staggered terms, in partisan election (Republican or Democrat on the election ballot § Municipal (City) -Odd years, Nonpartisan 62 elections, and city wide Counties § County Finance/Revenues-Just as structure of county governments is frozen in the Texas Constitution, so is the county's power to tax and to a lesser extent, its power to spend § § Taxation-taxes on property, most important revenue source/ commissioner court's set the tax rate/ can add 0.5 to 1.5cents unto the state sales tax (can't exceed 2%) Can also impose a sales tax 63 Counties § § Revenues from Nontax Sources-fees on the sale of liquor and they share in state revenue from liquor sales, various motor vehicle taxes and fees and traffic fines § Counties are eligible for federal grant in aid but has decreased. Like the city they can issue bonds to pay for capital projects (jail/new sports stadium)... 64 Counties § § But Tx. Constitution limits county indebtedness to 35% of a county's total assessed property value § Tax Incentives and Subsidiescommissioners court may grant tax abatement (reductions or suspensions) on taxable property, reimbursements (return of taxes paid) or tax increment financing (TIF; the use of future gains in property value to finance current development projects) to attract or retain businesses65 Counties § The Bottom Line § § § Pressure to increase taxes or to balance their budgets by eliminating or reducing programs and services Sources of county revenue are not expanding as quickly as demand Expenditures- Hospitals and health care, public safety, and roads are the largest expenditures for Texas counties overall 66 Counties § Expenditure § § Texas's largest counties, also spend smaller but significant amounts on urban amenities (parks ) and social programs (housing and welfare) Smaller counties tend to spend a large portion of their budget on public safety and roads and little on social services and urban amenities 67 Counties § County judge, auditor prepares the budget, the commissioners court is responsible for final adoption of an annual spending plan (enhances the commissioners court's power within county government) § Counties sometime don't have complete control over spending because state and federal rules mandate certain county services and regulatory activities( social services, legal assistance, and medical 68 care for poor and mental health care) Counties § § Expenditures (cont) Over the last decade, counties have made a major effort to pressure the legislature to limit unfunded mandates § County Government Reform § Rigid structure and duties § Inefficiency related to too many elected officials 69 Counties § § § § § Lack of merit systems for hiring and promoting employees; Merit systems in large populations Too little money County home rule-but too difficult to implement Texas strongly against Many county officials prefer the current system as do many people served by counties outside of the metropolitan area 70 Counties § Border Counties § Unprecedented growth near Rio Grande § NAFTA § Many live in colonias § Extremely poor § Government does little to help § Undocumented immigrants 71 Counties § Questions: § § § Local residents of each county can determine the structure of their own county government. What is the major policymaking body in each Texas county? 72 Colonias lack infrastructure or utilities Critical Thinking Question: Should county government, along the border, work on improving the conditions of colonias? Why? Copyright © 2016 Cengage Learning. All rights reserved. 73 Special Districts- A unit of local government that performs a § particular service such as providing schools, hospitals, or housing, for a § particular geographic area § fastestgrowing form of government § Two categories: § § School districts and noneducation special districts § 74 Public School Districts § § Public Education in the state of Texas is provided directly by local school districts. More than 1000 Texas independent school districts (HISD), created by the legislature, are governed by popularly elected, nonsalaried board of trustees. Raises tax revenue to support its public schools Picks out superintendent (leadership and day to day decisions of the district's educational programs, budget, media) 75 Public School Districts § § § § Sharp divisions within the community over volatile cultural issues (sex education, prayer in school, racial and ethic conflict, .emphasis on athletic programs, difference over taxing and spending decisions) Emphasis on athletic programs, difference over taxing and spending decisions Increase in state/federal requirements (testing) Increasing ethnic and economic diversity of 76 Texas's school children Public School Districts § § Equity (fair and impartial) in school finance and how much should be spent. Poor districts, relying on property taxes, had to tax at a high rate to provide minimum expenditure per pupil. Wealthier districts, on the other hand, could spend considerably more with significantly lower tax rates Increased need for services and the slow growth of funding 77 Public School Districts § § Property tax is the only local source of tax revenue for Texas pubic schools. Unlike the local government, special districts cannot use the sales tax for revenue (This does not include School districts receive more than 50% of property taxes collected in the state 78 Special Districts § Junior or Community College DistrictsCommunity colleges § State appropriations § Student tuition and fees § Federal and private donations § Property taxes raised by local district (only community college) 79 Special Districts § § § Junior or Community College DistrictsCommunity colleges Each district is governed by an elected board that has power to set property tax rates, issue bonds (subject to voter approval) Pictures out in the corridor Adopt an annual budget § 50 districts with two or more colleges § Critical in a region's economic development § Improvements in health and reduction in crime, welfare costs, and unemployment 80 Texas Communit y, Technical, and State Colleges Critical Thinking Question: How will tuition increases affect student access to and success in higher education? Copyright © 2016 Cengage Learning. All rights reserved. 81 Special Districts § (2)Noneducation Special Districts § Nearly 2,300 found in Texas § Flood, water, MUD districts, hospital district, sewage, parks, fire protection,housing. (congressional districts are districts that elects federal representatives; not a special district) § Most governed by board ( many elected), collect property taxes and fees, issue bonds and spend money 82 to Special Districts § Noneducation Special Districts § Reasons Texas has so many Special Districts: § § Many local needs cut across boundaries (mass transit, hospitals, flood protection) Restrictions in the state constitutions provisions or the unwillingness of local government leaders make it difficult for an existing government to take on new tasks 83 Special Districts § Noneducation Special Districts § Create districts to make money for themselves § Ex. Mud districts in suburbs (developers invest money and paid back by bonds and people who eventually move into the subdivision 84 § § § Questions: What are two categories of special districts? Why are special districts so important? 85 Metropolitan Areas § Metro government § Possible solution to address variances in urban/suburban governments § Consolidation of units of local government within an urban area under a single authority § Other states/Resisted in San Antonio § Not used to deal with problems in metropolitan areas because of the 86 Metropolitan Areas § § Metro government Instead, use councils of government and annexation to deal with problems in the metropolitan area § Councils of Government- § 24 created in 1960s § A regional planning body composed of 87 governmental units ( cities counties, special Metropolitan Areas § § § Council of Governments (COG) con't. Reviews and comment on proposals by local government for obtaining state and federal grants Implement state/federal programs 88 Texas Councils of Government Critical Thinking Question: Why does Texas have so many levels of government? Are COGS really necessary? Copyright © 2016 Cengage Learning. All rights reserved. 89 Metropolitan Areas § Municipal Annexation § Law enacted in 1963.Cities have extraterritorial jurisdiction (ETJ) § § § ETJ- the unincorporated area outside a city's boundaries into which it may annex. Designed to improve order and planning so when they finally annex area they will be in compliance with the city's building and fire codes Makes Texas central cities larger than other states City can annex contiguous unincorporated 90 areas without a vote by citizens living in area Metropolitan Areas § Municipal Annexation § Those with few services (fire, police) want annexation. § Established suburban communities object strenuously to being “gobbled up” without their permission. Clear Lake City and Kingwood § Woodlands in 2006-2007 worked out a financial settlement with both cities to avoid annexation 91 Metropolitan Areas § § § Questions: What are the two primary ways that Texas deals with problems in metropolitan areas? Which groups want to be annexed? Which do not? 92 Houston Taps Emergency Water Click picture to view video Copyright © 2016 Cengage Learning. All rights reserved. 93 Video Discussion Questions 1. 2. 3. Which government entity is responsible for providing water to Houston residents? What everyday resources are local governments responsible for? Should the state oversee water allocation? Should the federal government? Copyright © 2016 Cengage Learning. All rights reserved. 94
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