Bill Text: CT SB00423 | 2018 | General Assembly | Comm Sub


Bill Title: An Act Eliminating The Municipal Spending Cap.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2018-04-10 - File Number 394 [SB00423 Detail]

Download: Connecticut-2018-SB00423-Comm_Sub.html

General Assembly

 

Raised Bill No. 423

February Session, 2018

 

LCO No. 2126

 

*_____SB00423PD____032618____*

Referred to Committee on PLANNING AND DEVELOPMENT

 

Introduced by:

 

(PD)

 

AN ACT ELIMINATING THE MUNICIPAL SPENDING CAP.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 4-66l of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2018):

(a) For the purposes of this section:

(1) "FY 15 mill rate" means the mill rate a municipality used during the fiscal year ending June 30, 2015;

(2) "Mill rate" means, unless otherwise specified, the mill rate a municipality uses to calculate tax bills for motor vehicles;

(3) "Municipality" means any town, city, consolidated town and city or consolidated town and borough. "Municipality" includes a district for the purposes of subdivision (1) of subsection (d) of this section;

(4) "Municipal spending" means:

T1

Municipal

spending for

the fiscal year

prior to the

current fiscal

Municipal

spending for

the fiscal year

two years

prior to the

   

T2

   

T3

   

T4

   

T5

   

T6

year

current year

X 100

= Municipal spending;

T7

_________________________________

T8

Municipal spending for the fiscal

T9

year two years prior to the

   

T10

current year

   

(5) "Per capita distribution" means:

T11

Municipal population

___________________

X Sales tax revenue

= Per capita distribution;

T12

T13

T14

Total state population

(6) "Pro rata distribution" means:

T15

Municipal weighted

mill rate

calculation

X Sales tax revenue

= Pro rata distribution;

T16

T17

___________________

T18

Sum of all municipal

weighted mill rate

calculations combined

T19

T20

(7) "Regional council of governments" means any such council organized under the provisions of sections 4-124i to 4-124p, inclusive;

(8) "Municipal population" means the number of persons in a municipality according to the most recent estimate of the Department of Public Health;

(9) "Total state population" means the number of persons in this state according to the most recent estimate published by the Department of Public Health;

(10) "Weighted mill rate" means a municipality's FY 15 mill rate divided by the average of all municipalities' FY 15 mill rate;

(11) "Weighted mill rate calculation" means per capita distribution multiplied by a municipality's weighted mill rate;

(12) "Sales tax revenue" means the moneys in the account remaining for distribution pursuant to subdivision (7) of subsection (b) of this section;

(13) "District" means any district, as defined in section 7-324; and

(14) "Secretary" means the Secretary of the Office of Policy and Management.

(b) There is established an account to be known as the "municipal revenue sharing account" which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. The secretary shall set aside and ensure availability of moneys in the account in the following order of priority and shall transfer or disburse such moneys as follows:

(1) Ten million dollars for the fiscal year ending June 30, 2016, shall be transferred not later than April fifteenth for the purposes of grants under section 10-262h;

(2) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, moneys sufficient to make motor vehicle property tax grants payable to municipalities pursuant to subsection (c) of this section shall be expended not later than August first annually by the secretary;

(3) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, moneys sufficient to make the grants payable from the select payment in lieu of taxes grant account established pursuant to section 12-18c shall annually be transferred to the select payment in lieu of taxes account in the Office of Policy and Management;

(4) For the fiscal years ending June 30, 2018, and June 30, 2019, moneys sufficient to make the municipal revenue sharing grants payable to municipalities pursuant to subdivision (2) of subsection (d) of this section shall be expended not later than October thirty-first annually by the secretary;

(5) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, seven million dollars shall be expended for the purposes of the regional services grants pursuant to subsection (e) of this section to the regional councils of governments;

(6) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, moneys may be expended for the purpose of supplemental motor vehicle property tax grants pursuant to subsection (c) of this section; and

(7) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, moneys in the account remaining shall be expended annually by the secretary for the purposes of the municipal revenue sharing grants established pursuant to subsection (f) of this section. Any such moneys deposited in the account for municipal revenue sharing grants between October first and June thirtieth shall be distributed to municipalities on the following October first and any such moneys deposited in the account between July first and September thirtieth shall be distributed to municipalities on the following January thirty-first. Any municipality may apply to the Office of Policy and Management on or after July first for early disbursement of a portion of such grant. The Office of Policy and Management may approve such an application if it finds that early disbursement is required in order for a municipality to meet its cash flow needs. No early disbursement approved by said office may be issued later than September thirtieth.

(c) (1) For the fiscal year ending June 30, 2018, motor vehicle property tax grants to municipalities that impose mill rates on real property and personal property other than motor vehicles greater than 39 mills or that, when combined with the mill rate of any district located within the municipality, impose mill rates greater than 39 mills, shall be made in an amount equal to the difference between the amount of property taxes levied by the municipality and any district located within the municipality on motor vehicles for the assessment year commencing October 1, 2013, and the amount such levy would have been if the mill rate on motor vehicles for said assessment year was 39 mills.

(2) For the fiscal year ending June 30, 2019, and each fiscal year thereafter, motor vehicle property tax grants to municipalities that impose mill rates on real property and personal property other than motor vehicles greater than 45 mills or that, when combined with the mill rate of any district located within the municipality, impose mill rates greater than 45 mills, shall be made in an amount equal to the difference between the amount of property taxes levied by the municipality and any district located within the municipality on motor vehicles for the assessment year commencing October 1, 2013, and the amount such levy would have been if the mill rate on motor vehicles for said assessment year was 45 mills.

(3) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, any municipality that imposed a mill rate for real and personal property of more than 39 mills during the fiscal year ending June 30, 2017, and effected a revaluation of real property for the 2014 or 2015 assessment year that resulted in an increase of 4 or more mills over the prior mill rate, may apply to the Office of Policy and Management for a supplemental motor vehicle property tax grant. The Office of Policy and Management may approve such an application, within available funds, provided such supplemental grant does not reduce any amount payable to any other municipality.

(4) Not later than fifteen calendar days after receiving a property tax grant pursuant to this section, the municipality shall disburse to any district located within the municipality the amount of any such property tax grant that is attributable to the district.

(d) (1) For the fiscal year ending June 30, 2017, each municipality shall receive a municipal revenue sharing grant, which shall be payable August 1, 2016, from the Municipal Revenue Sharing Fund established in section 4-66p. The total amount of the grant payable is as follows:

T21

Municipality

Grant Amount

T22

Andover

66,705

T23

Ansonia

605,442

T24

Ashford

87,248

T25

Avon

374,711

T26

Barkhamsted

76,324

T27

Beacon Falls

123,341

T28

Berlin

843,048

T29

Bethany

114,329

T30

Bethel

392,605

T31

Bethlehem

42,762

T32

Bloomfield

438,458

T33

Bolton

106,449

T34

Bozrah

53,783

T35

Branford

570,402

T36

Bridgeport

14,476,283

T37

Bridgewater

15,670

T38

Bristol

1,276,119

T39

Brookfield

343,611

T40

Brooklyn

103,910

T41

Burlington

193,490

T42

Canaan

14,793

T43

Canterbury

58,684

T44

Canton

211,078

T45

Chaplin

48,563

T46

Cheshire

594,084

T47

Chester

57,736

T48

Clinton

268,611

T49

Colchester

330,363

T50

Colebrook

29,694

T51

Columbia

111,276

T52

Cornwall

11,269

T53

Coventry

252,939

T54

Cromwell

288,951

T55

Danbury

2,079,675

T56

Darien

171,485

T57

Deep River

93,525

T58

Derby

462,718

T59

Durham

150,019

T60

East Granby

106,222

T61

East Haddam

186,418

T62

East Hampton

263,149

T63

East Hartford

3,877,281

T64

East Haven

593,493

T65

East Lyme

243,736

T66

East Windsor

232,457

T67

Eastford

23,060

T68

Easton

155,216

T69

Ellington

321,722

T70

Enfield

911,974

T71

Essex

74,572

T72

Fairfield

795,318

T73

Farmington

335,287

T74

Franklin

26,309

T75

Glastonbury

754,546

T76

Goshen

30,286

T77

Granby

244,839

T78

Greenwich

366,588

T79

Griswold

243,727

T80

Groton

433,177

T81

Guilford

456,863

T82

Haddam

170,440

T83

Hamden

4,491,337

T84

Hampton

38,070

T85

Hartford

13,908,437

T86

Hartland

27,964

T87

Harwinton

113,987

T88

Hebron

208,666

T89

Kent

26,808

T90

Killingly

351,213

T91

Killingworth

85,270

T92

Lebanon

149,163

T93

Ledyard

307,619

T94

Lisbon

45,413

T95

Litchfield

169,828

T96

Lyme

21,862

T97

Madison

372,897

T98

Manchester

1,972,491

T99

Mansfield

525,280

T100

Marlborough

131,065

T101

Meriden

1,315,347

T102

Middlebury

154,299

T103

Middlefield

91,372

T104

Middletown

964,657

T105

Milford

1,880,830

T106

Monroe

404,221

T107

Montville

401,756

T108

Morris

28,110

T109

Naugatuck

2,405,660

T110

New Britain

5,781,991

T111

New Canaan

168,106

T112

New Fairfield

288,278

T113

New Hartford

140,338

T114

New Haven

2,118,290

T115

New London

750,249

T116

New Milford

565,898

T117

Newington

651,000

T118

Newtown

572,949

T119

Norfolk

20,141

T120

North Branford

292,517

T121

North Canaan

66,052

T122

North Haven

487,882

T123

North Stonington

107,832

T124

Norwalk

3,401,590

T125

Norwich

1,309,943

T126

Old Lyme

79,946

T127

Old Saybrook

101,527

T128

Orange

284,365

T129

Oxford

171,492

T130

Plainfield

310,350

T131

Plainville

363,176

T132

Plymouth

255,581

T133

Pomfret

54,257

T134

Portland

192,715

T135

Preston

58,934

T136

Prospect

197,097

T137

Putnam

76,399

T138

Redding

189,781

T139

Ridgefield

512,848

T140

Rocky Hill

405,872

T141

Roxbury

15,998

T142

Salem

85,617

T143

Salisbury

20,769

T144

Scotland

36,200

T145

Seymour

343,388

T146

Sharon

19,467

T147

Shelton

706,038

T148

Sherman

39,000

T149

Simsbury

567,460

T150

Somers

141,697

T151

South Windsor

558,715

T152

Southbury

404,731

T153

Southington

889,821

T154

Sprague

89,456

T155

Stafford

243,095

T156

Stamford

2,372,358

T157

Sterling

77,037

T158

Stonington

202,888

T159

Stratford

1,130,316

T160

Suffield

321,763

T161

Thomaston

158,888

T162

Thompson

114,582

T163

Tolland

303,971

T164

Torrington

2,435,109

T165

Trumbull

745,325

T166

Union

17,283

T167

Vernon

641,027

T168

Voluntown

33,914

T169

Wallingford

919,984

T170

Warren

11,006

T171

Washington

25,496

T172

Waterbury

13,438,542

T173

Waterford

259,091

T174

Watertown

453,012

T175

West Hartford

1,614,320

T176

West Haven

1,121,850

T177

Westbrook

80,601

T178

Weston

211,384

T179

Westport

262,402

T180

Wethersfield

940,267

T181

Willington

121,568

T182

Wilton

380,234

T183

Winchester

224,447

T184

Windham

513,847

T185

Windsor

593,921

T186

Windsor Locks

256,241

T187

Wolcott

340,859

T188

Woodbridge

247,758

T189

Woodbury

200,175

T190

Woodstock

97,708

T191

Borough of Danielson

-

T192

Borough of Litchfield

-

T193

Bloomfield, Blue Hills FD

92,961

T194

Enfield Thompsonville FD #2

354,311

T195

Manchester - Eighth Utility District

436,718

T196

Middletown - City Fire

910,442

T197

Middletown So Fire

413,961

T198

Norwich CCD

552,565

T199

Norwich TCD

62,849

T200

Simsbury FD

221,536

T201

Plainfield Fire District

-

T202

Windham, Special Service District #2

640,000

T203

Windham 1st Taxing District

-

T204

Windham First

 

T205

West Haven First Center (D1)

1,039,843

T206

West Haven: Allingtown FD (D3)

483,505

T207

West Haven: West Shore FD (D2)

654,640

(2) For the fiscal years ending June 30, 2018, and June 30, 2019, each municipality shall receive a municipal sharing grant payable not later than October thirty-first of each year. The total amount of the grant payable is as follows:

T208

Municipality

Grant Amount

T209

Andover

96,020

T210

Ansonia

643,519

T211

Ashford

125,591

T212

Avon

539,387

T213

Barkhamsted

109,867

T214

Beacon Falls

177,547

T215

Berlin

1,213,548

T216

Bethany

164,574

T217

Bethel

565,146

T218

Bethlehem

61,554

T219

Bloomfield

631,150

T220

Bolton

153,231

T221

Bozrah

77,420

T222

Branford

821,080

T223

Bridgeport

9,758,441

T224

Bridgewater

22,557

T225

Bristol

1,836,944

T226

Brookfield

494,620

T227

Brooklyn

149,576

T228

Burlington

278,524

T229

Canaan

21,294

T230

Canterbury

84,475

T231

Canton

303,842

T232

Chaplin

69,906

T233

Cheshire

855,170

T234

Chester

83,109

T235

Clinton

386,660

T236

Colchester

475,551

T237

Colebrook

42,744

T238

Columbia

160,179

T239

Cornwall

16,221

T240

Coventry

364,100

T241

Cromwell

415,938

T242

Danbury

2,993,644

T243

Darien

246,849

T244

Deep River

134,627

T245

Derby

400,912

T246

Durham

215,949

T247

East Granby

152,904

T248

East Haddam

268,344

T249

East Hampton

378,798

T250

East Hartford

2,036,894

T251

East Haven

854,319

T252

East Lyme

350,852

T253

East Windsor

334,616

T254

Eastford

33,194

T255

Easton

223,430

T256

Ellington

463,112

T257

Enfield

1,312,766

T258

Essex

107,345

T259

Fairfield

1,144,842

T260

Farmington

482,637

T261

Franklin

37,871

T262

Glastonbury

1,086,151

T263

Goshen

43,596

T264

Granby

352,440

T265

Greenwich

527,695

T266

Griswold

350,840

T267

Groton

623,548

T268

Guilford

657,644

T269

Haddam

245,344

T270

Hamden

2,155,661

T271

Hampton

54,801

T272

Hartford

1,498,643

T273

Hartland

40,254

T274

Harwinton

164,081

T275

Hebron

300,369

T276

Kent

38,590

T277

Killingly

505,562

T278

Killingworth

122,744

T279

Lebanon

214,717

T280

Ledyard

442,811

T281

Lisbon

65,371

T282

Litchfield

244,464

T283

Lyme

31,470

T284

Madison

536,777

T285

Manchester

1,971,540

T286

Mansfield

756,128

T287

Marlborough

188,665

T288

Meriden

1,893,412

T289

Middlebury

222,109

T290

Middlefield

131,529

T291

Middletown

1,388,602

T292

Milford

2,707,412

T293

Monroe

581,867

T294

Montville

578,318

T295

Morris

40,463

T296

Naugatuck

1,251,980

T297

New Britain

3,131,893

T298

New Canaan

241,985

T299

New Fairfield

414,970

T300

New Hartford

202,014

T301

New Haven

114,863

T302

New London

917,228

T303

New Milford

814,597

T304

Newington

937,100

T305

Newtown

824,747

T306

Norfolk

28,993

T307

North Branford

421,072

T308

North Canaan

95,081

T309

North Haven

702,295

T310

North Stonington

155,222

T311

Norwalk

4,896,511

T312

Norwich

1,362,971

T313

Old Lyme

115,080

T314

Old Saybrook

146,146

T315

Orange

409,337

T316

Oxford

246,859

T317

Plainfield

446,742

T318

Plainville

522,783

T319

Plymouth

367,902

T320

Pomfret

78,101

T321

Portland

277,409

T322

Preston

84,835

T323

Prospect

283,717

T324

Putnam

109,975

T325

Redding

273,185

T326

Ridgefield

738,233

T327

Rocky Hill

584,244

T328

Roxbury

23,029

T329

Salem

123,244

T330

Salisbury

29,897

T331

Scotland

52,109

T332

Seymour

494,298

T333

Sharon

28,022

T334

Shelton

1,016,326

T335

Sherman

56,139

T336

Simsbury

775,368

T337

Somers

203,969

T338

South Windsor

804,258

T339

Southbury

582,601

T340

Southington

1,280,877

T341

Sprague

128,769

T342

Stafford

349,930

T343

Stamford

3,414,955

T344

Sterling

110,893

T345

Stonington

292,053

T346

Stratford

1,627,064

T347

Suffield

463,170

T348

Thomaston

228,716

T349

Thompson

164,939

T350

Tolland

437,559

T351

Torrington

1,133,394

T352

Trumbull

1,072,878

T353

Union

24,878

T354

Vernon

922,743

T355

Voluntown

48,818

T356

Wallingford

1,324,296

T357

Warren

15,842

T358

Washington

36,701

T359

Waterbury

5,595,448

T360

Waterford

372,956

T361

Watertown

652,100

T362

West Hartford

2,075,223

T363

West Haven

1,614,877

T364

Westbrook

116,023

T365

Weston

304,282

T366

Westport

377,722

T367

Wethersfield

1,353,493

T368

Willington

174,995

T369

Wilton

547,338

T370

Winchester

323,087

T371

Windham

739,671

T372

Windsor

854,935

T373

Windsor Locks

368,853

T374

Wolcott

490,659

T375

Woodbridge

274,418

T376

Woodbury

288,147

T377

Woodstock

140,648

(e) For the fiscal year ending June 30, 2017, and each fiscal year thereafter, each regional council of governments shall receive a regional services grant, the amount of which will be based on a formula to be determined by the secretary, except that, for the fiscal year ending June 30, 2018, and each fiscal year thereafter, thirty-five per cent of such grant moneys shall be awarded to regional councils of governments for the purpose of assisting regional education service centers in merging their human resource, finance or technology services with such services provided by municipalities within the region. For the fiscal year ending June 30, 2017, three million dollars shall be expended by the secretary from the Municipal Revenue Sharing Fund established in section 4-66p for the purpose of the regional services grant. No such council shall receive a grant for the fiscal year ending June 30, 2018, or any fiscal year thereafter, unless the secretary approves a spending plan for such grant moneys submitted by such council to the secretary on or before July 1, 2017, and annually thereafter. The regional councils of governments shall use such grants for planning purposes and to achieve efficiencies in the delivery of municipal services by regionalizing such services, including, but not limited to, region-wide consolidation of such services. Such efficiencies shall not diminish the quality of such services. A unanimous vote of the representatives of such council shall be required for approval of any expenditure from such grant. On or before October 1, 2017, and biennially thereafter, each such council shall submit a report, in accordance with section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to planning and development and finance, revenue and bonding. Such report shall summarize the expenditure of such grants and provide recommendations concerning the expansion, reduction or modification of such grants.

(f) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, each municipality shall receive a municipal revenue sharing grant as follows:

(1) (A) A municipality having a mill rate at or above twenty-five shall receive the per capita distribution or pro rata distribution, whichever is higher for such municipality.

(B) Such grants shall be increased by a percentage calculated as follows:

T378

 

Sum of per capita distribution amount

 

T379

 

for all municipalities having a mill rate

 

T380

 

below twenty-five – pro rata distribution

 

T381

 

amount for all municipalities

 

T382

 

having a mill rate below twenty-five

 

T383

 

_______________________________________

 

T384

 

Sum of all grants to municipalities

 

T385

 

calculated pursuant to subparagraph (A)

 

T386

 

of subdivision (1) of this subsection.

 

(C) Notwithstanding the provisions of subparagraphs (A) and (B) of this subdivision, Hartford shall receive not more than 5.2 per cent of the municipal revenue sharing grants distributed pursuant to this subsection; Bridgeport shall receive not more than 4.5 per cent of the municipal revenue sharing grants distributed pursuant to this subsection; New Haven shall receive not more than 2.0 per cent of the municipal revenue sharing grants distributed pursuant to this subsection and Stamford shall receive not more than 2.8 per cent of the equalization grants distributed pursuant to this subsection. Any excess funds remaining after such reductions in payments to Hartford, Bridgeport, New Haven and Stamford shall be distributed to all other municipalities having a mill rate at or above twenty-five on a pro rata basis according to the payment they receive pursuant to this subdivision; and

(2) A municipality having a mill rate below twenty-five shall receive the per capita distribution or pro rata distribution, whichever is less for such municipality.

(3) For the purposes of this subsection, "mill rate" means the mill rate for real property and personal property other than motor vehicles.

(g) Except as provided in subsection (c) of this section, a municipality may disburse any municipal revenue sharing grant funds to a district within such municipality.

[(h) (1) Except as provided in subdivision (2) of this subsection, for the fiscal year ending June 30, 2018, and each fiscal year thereafter, the amount of the grant payable to a municipality in any year in accordance with subsection (d) or (f) of this section shall be reduced if such municipality increases its adopted budget expenditures for such fiscal year above a cap equal to the amount of adopted budget expenditures authorized for the previous fiscal year by 2.5 per cent or more or the rate of inflation, whichever is greater. Such reduction shall be in an amount equal to fifty cents for every dollar expended over the cap set forth in this subsection. For the purposes of this section, (A) "municipal spending" does not include expenditures for debt service, special education, implementation of court orders or arbitration awards, expenditures associated with a major disaster or emergency declaration by the President of the United States, a disaster emergency declaration issued by the Governor pursuant to chapter 517 or any disbursement made to a district pursuant to subsection (c) or (g) of this section, budgeting for an audited deficit, nonrecurring grants, capital expenditures or payments on unfunded pension liabilities, (B) "adopted budget expenditures" includes expenditures from a municipality's general fund and expenditures from any nonbudgeted funds, and (C) "capital expenditure" means a nonrecurring capital expenditure of one hundred thousand dollars or more. Each municipality shall annually certify to the secretary, on a form prescribed by said secretary, whether such municipality has exceeded the cap set forth in this subsection and if so the amount by which the cap was exceeded.

(2) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, the amount of the grant payable to a municipality in any year in accordance with subsection (d) or (f) of this section shall not be reduced in the case of a municipality whose adopted budget expenditures exceed the cap set forth in subdivision (1) of this subsection by an amount proportionate to any increase to its municipal population from the previous fiscal year, as determined by the secretary.]

[(i)] (h) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, the amount of the grant payable to a municipality in any year in accordance with subsection (f) of this section shall be reduced proportionately in the event that the total of such grants in such year exceeds the amount available for such grants in the municipal revenue sharing account established pursuant to subsection (b) of this section.

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2018

4-66l

PD

Joint Favorable

 
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