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February 2010

MML LEGISLATIVE CONFERENCE … We hope you plan to attend the MML Legislative Conference on February 17-18 at the Jefferson City Capitol Plaza Hotel. Featured speakers include: Governor Jay Nixon (invited), Attorney General Chris Koster (invited), and State Budget Director Linda Luebbering, and House and Senate leadership. Registration material has already been mailed to each municipality, but additional registration forms are available from League headquarters or on the MML Web site. Rooms also are available at Truman Hotel (573-635-7171). We look forward to seeing you in Jefferson City with a large delegation from your municipality.

CRUCIAL NOTICE: CITIES IN CHARTER COUNTIES … S.B. 711, passed in 2008, requires each political subdivision to provide the county with an estimated property tax rate by April 8 of each year (after the county provides data on assessed valuation). Failure to do so results in a mandatory 20 percent reduction in the tax rate. This provision takes effect in the four charter counties in 2009 and in the other counties in 2011.

MINOR IN POSSESSION BY CONSUMPTION ORDINANCE … The city of Cape Girardeau recently passed an ordinance aimed at underage drinking.  The first reading was approved January 19; the second and third readings will take place February 1, and will take effect 10 days after that. The ordinance applies the same sanction as possession of alcohol by minors who are found to have consumed alcohol.  Copies of the ordinance may be downloaded from the League’s Web site – look under “What’s New”.

The Ranks Of “‘AAA” Municipalities Swell Despite Hard Times … Despite tough economic times, the number of U.S. municipalities with “AAA” ratings has more than doubled since early 2008, to 169. A total of 86 communities joined this group in the 18 months through August 2009. The large increase reflects ongoing modifications to Standard & Poor’s Ratings Services’ criteria and their view of the economic, financial, and managerial strength of these municipalities. Of the new entrants, 65 were upgraded from the “AA” rating category, while the debt of 21 communities was initially rated “AAA”. Cities in Missouri joining the “AAA” list as newcomers are Clayton, Creve Coeur, and Des Peres.

MOCCFOA TO SPONSOR SPRING INSTITUTE … The Missouri City Clerks and Finance Officers Association will hold its annual Spring Institute on March 8-11, 2010, at the Lodge of Four Seasons in Four Seasons, Mo. This annual meeting provides a variety of educational opportunities that address many of the aspects of the city clerk’s position. Those attending the seminar will be provided handouts of the sessions and other informative and educational material that may be shared with other city officials. Registration information is available on the MOCCFOA Web site at www.moccfoa.org.

MO INTERGOVERNMENTAL COOPERATION COMMISSION ELIMINATED … Governor Jay Nixon announced the elimination of 13 state boards and commissions and another 18 boards have been targeted for liquidation by legislation.  The Intergovernmental Cooperation Commission is among those being eliminated.  Prior to the Governor’s inauguration last January, the MML Board had encouraged the Governor to continue with the Intergovernmental Cooperation Commission. We regret the elimination of this Commission. 

Public Works Articles ... The Missouri Municipal Review, the official publication of the Missouri Municipal League is interested in soliciting articles about public works projects that have recently occurred in Missouri’s municipalities.  If your city or firm has recently done an interesting or innovative project, please consider submitting an article for publication in the upcoming May issue. Deadline for article submission is March 19. Contact Katie Bradley, editor, at kbradley@mocities.com for information about article submissions.

PLAN TO ATTEND A “GROWING OUR COMMUNITIES TOGETHER” WORKSHOP … MML staff and the Hughes firm will conduct two, one-day workshops on implementing the “Growing Our Communities Together” campaign, as well as other public relations strategies. The workshop sessions will include information on the use of toolkit items, and information on how to enhance the image of your municipality.  The workshops will be held on March 2 at the Lodge Des Peres, in the city of Des Peres, and on March 25 at the Adams Pointe Conference Center in Blue Springs.  Registration information will be e-mailed to city officials and staff and also can be found on the MML Web site – look under “Events.”

2010 L   EADERSHIP ACADEMY SET … Eighteen city officials will participate in the 2010 Leadership Academy. The Missouri Municipal League (MML), the Missouri Association of Counties (MAC), and the Harry S Truman School of Public Affairs (TSPA) at the University of Missouri are sponsors of the Leadership Academy. The Academy curriculum is highly interactive, utilizing real-life case studies, experiential exercises, and up-to-date readings and materials. The sessions are led by Truman School faculty and practitioners chosen for their expertise and experience in public sector issues and leadership training.  For more information about the Academy visit http://truman.missouri.edu/ipp/olp/ALD.asp.

MULLIGAN RECEIVES HIGH HONORS … University City’s City Attorney John Mulligan was selected as “Lawyer of the Year” by Missouri Lawyers Weekly for his work in securing settlement of the lawsuits against cell phone and landline providers for underpaid gross receipts taxes. Mulligan initiated the class action lawsuits almost ten years ago and persevered against great odds. The settlements have helped Missouri municipalities balance budgets in recent years. Congratulations, John!

TAX REFORM … On January 12 the Missouri Senate held a seminar on the “Fair Tax” plan (SJR 29, HJR 56 and 71); a proposal to replace the personal and corporate income tax with a higher sales tax rate that also would be applied to services. Local governments would have to reduce sales tax rates to be revenue neutral.  A similar tax restructuring proposal was introduced last year and passed the House, but failed to gain Senate approval.  This year, however, the Senate leadership has vowed to give the “fair tax “issue a hearing and time on the Senate floor for debate. The effect on municipal sales taxes is not clearly defined and the procedure for making the local taxes truly “revenue neutral” is “fuzzy” at best.  It is also not clear what the ”fair tax” proposal will do to local businesses.  With the expansion of the sales tax to include all services (doctor visits, legal services, prescription drugs, nursing home and hospital care, and much more) the concern is that businesses will be driven to Missouri’s eight neighboring states.  What the proponents are not saying is that this is an experiment, the fair tax plan has not been implemented in any other state, and a study of its effects on the state’s economy has not been fully considered.  Such a drastic change in Missouri’s tax codes needs an honest and objective review.  We will keep you informed on how this issue progresses through the legislative process.