Model City Charter Revision Project - Eighth Edition
Option Memo
Issue: Initiative and Referendum - Taxation
Seventh Edition: Appendix II provides detailed charter language
for cities where state law does not provide local procedures for initiative
and referendum. The Model states that initiative power "shall not
extend to the budget or capital program or any ordinance relating to
the appropriation of money, levy of taxes, or salary of city officers
or employees." A similar provision exists for referenda, without
the restriction on salary. This provision may be outdated.
Pros of Advising Against Initiative and Referenda That Affect Taxation:
When citizens can limit taxation and compel spending, such laws may
unreasonably affect government's ability to deliver services and implement
the best policies for citizens. Tax loathing citizens have created more
problems than they have solved by limiting the government's power to
tax.
Cons of Advising Against Initiative and Referenda That Affect Taxation:
For citizens to be fully involved in setting government policy through
direct democracy, the initiative and referendum power should not be
limited. The Model's advice against this power over taxation is unrealistic
and not reflected in city charters today.
Two Options: The Committee should adopt one of the following
positions by the end of the March 22 meeting:
- The Model should no longer advise against initiative and referendum
power over taxation.
- The Model should continue to discourage initiative and referendum
power over taxation.
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