News-Sentinel.com

Forum Extra -- A House Divided

By Leo Morris of The News-Sentinel

Whenever talk turns to consolidated or merged local government in Allen County, the same scary word comes up: UniGov. There seems to be an impression that any new form of government here would be, 1) forced on us and, 2) bound to follow the Indianapolis model.

Neither is true.

The form of government we have is up to us. A charter commmission, composed of a broad cross-section of the community, would try to devise the best form of government based on local factors. Voters would have an opportunity to vote yes or no on the proposal in a referendum. And, as these eight profiles show, Indianapolis isn't necessarily the best model for us to emulate. We can choose any we want or, better yet, mix and match, take the best from a lot of models. Not only can we reinvent our local government; we can also learn from others' mistakes.

1. Nashville and Davidson County, Tenn.

Year changed : 1963

Details: Merged city government, county government and the two school districts and created a metropolitan police department. Governed by an elected mayor and a 40-member Metro Council (35 district members and five at-large members).

Taxing features: Two tiers. There is a general services property tax that is paid by everyone. An additional services tax is charged to residents of the urban core (making up about 60 percent of the area) to cover the cost of garbage pickup and other services.

Results: "It's a no-brainer that the taxpaper has saved money," says Metro Nashville Finance Director David Manning. The tax rate of $4.58 per $100 of assessed valuation is lower than that of the other three biggest metropolitan areas in Tennessee -- Memphis ($7.02), Knoxville ($5.66) and Chattanooga ($5.58). The key point, according to Ross Loder, deputy director of the Tennessee Municipal League, "is tailoring the government to meet local needs and circumstances."

History: A 10-member government charter commission began investigating consolidation in the late 1950s in order to save money and provide a more efficient government. The idea lost in its first voter referendum in 1958, mostly because of county residents' fears of higher taxes and reduced services, which led to the anti-merger slogan, "Castro has Metro!" After the failure, the mayor began an aggressive campaign of annexation, which led to complaints from newly annexed citizens that they weren't getting any new services for the higher taxes they were paying in the city. This brought a call for the consolidation to be reconsidered. It passed in its second referendum in 1962 with 57 percent in favor.

2. Virginia Beach, Va.

Year changed: 1963

Details: If the government structure of Virginia Beach -- mayor, city council and city manager -- makes it sound like a more-or-less typical city, that's because it is (although all council members serve at-large). The resort town of Virginia Beach basically annexed the county it was in -- Princess Anne County -- and disappeared it.

Taxing features: Since the county was absorbed into the city, the city kept the same taxing structure it had always had, and county residents began paying only those taxes.

Results: In 1963, there were about 111,000 residents in the 2 square-mile resort of Virginia Beach, and the 13.5 square-mile Princess Anne County had but 38,000. Today, the city of Virginia Beach has 425,000 residents (as of the 2000 Census), and tourism has exploded into a three-million-visitors-a-year, $647 million-a-year industry.

History: The merger was approved by a majority of city and county residents, but some old-timers say they still resent the speed and crudeness with which the merger was enabled by the legislature, prodded by a lot of local political clout. Princess Anne County was established a century before the Revolutionary War, and Virginia Beach at the time of the merger was an upstart 57-year-old. But officials felt they had to move quickly to thwart the ambitions of Norfolk, then the largest city in Eastern Virgina and beginning to whittle into affluent areas of Princess Anne County through its own program of aggressive annexation. The strategy obviously worked. Virginia Beach is now the biggest city in Virgina and the 38th largest in the nation.

3. Jacksonville and Duvall County, Fla.

Year changed: 1968

Details: Consolidated were the county and Jacksonville, the air improvement authority and two mosquito control districts. Schools and courts were not included, and the other four cities in the county declined to participate. The mayor is chief executive and administrative officer, and there is a 19-member council (14 single-member districts and five at-large) that has all the legislative duties. Both mayor and council members are limited to two consecutive four-year terms. Some other officials continue to be elected -- the sheriff, supervisor of elections, property appraiser and tax collector. Pension rights and benefits of employees were explicitly protected.

Taxing features: There is a general services district, in which everyone pays, and five urban services district, one for each of the four cities and the former central city area of Jacksonville.

Results: The new government reduced property taxes each year for the first nine years, including a 29 percent reduction the first three years. During that same period, it undertook massive capital improvement programs. An extensive study was made that could not demonstrate whether the consoldiation had any positive economic development effects.

History: Consolidation passed on its first referendum. Primary impetus of the merger was not to save money or improve efficiency but to reduce the effects of corruption and political scandal. There were also extensive infrastructure problems.

4. Grand Rapids and Kent County, Mich.

Year changed: 1990

Details: Grand Rapids and other communities in Kent County actually have the same government structure they've always had. But the county, eight cities and five town townships each pay a proportional share of fees to maintain the Grand Rapids Metropolitan Council, which has a budget of $1 million a year and has the power to sell bonds to raise revenue for mutually beneficial projects. Government entities are not forced to join, and they can withdraw at will.

Taxing features: None.

Results: There was some concern going in from individual jurisdictions about loss of power, but the fears haven't been realized. Although progress has been slow, reports Eastern Michigan University, "the council now shows signs of success and longterm viability and will obviously result in better longterm planning at a regional level."

History: For years, government officials in Kent County had been having luncheon meetings to discuss common concerns. It was finally formalized as the group Grand Rapids Area Government; it served the useful purpose of keeping the lines of communication open, but had no real power. Then in 1989, the Michigan legislature passed a law allowing metro areas to organize new interjurisdictional agencies with real missions. The purpose was to encourage cooperation "toward solving common metropolitan concerns." The Grand Rapids area was the first to make use of the new law.

5. Athens and Clarke County, Ga.

Year changed: 1991

Details: Merged city and county. Governed by an elected mayor and a 10-member county commission (the legislative body), which consists of eight districts and two "super districts" that each contain four of the eight districts; a full-time professional manager, hired by a majority vote of the commission, handles the day-to-day duties of government.

Taxing features: Two tiers, a general-services tax paid by all and an urban-services district paid by those in the urban core.

Results: There were significant transitional costs due to the decision to equalize city-county employee salaries by the fourth year, but by the second year of operation, the total combined budget was 5.9 percent less than the two separate budgets would have been. Moody's Investment Service upgraded the new government's bond rating, and the success of unified government in strengthening the community's tax base was cited as a principal reason.

History: There were four unsuccessful efforts to consolidate between 1969 and 1991. What made voters finally give it the nod was a decision to appeal to city residents, who were used to the city council merely approving or rejecting the mayor's budgets, and county residents, who were used to the county commission deciding on budgets line by line. A decision was made to separate fiscal policy from actual budgets. Under the new system, the mayor presents a fiscal policy outlining general directions for the new year to the commission. The commission works with the mayor on a final draft of the policy. After the commission approves the policy, the mayor and professional manager work out a budget based on it. The commission can either approve or reject that final budget.

6. Louisville and Jefferson County, Ky.

Year changed: 2003

Details: Greater Louisville is now governed by a mayor and a 26-member council, each member representing about 25,000 people (county commissioners under the old system represented about 10 times that). United government does not require the merger of police departments, or any other departments; fire districts stay the same. There is a plan to slowly merge the police departments, if the public says that's what it wants. The new government has five years to reconcile differences between city and county laws; any that aren't amended or adopted will expire. State laws will continue to require voter approval for tax increases above a certain level.

Taxing features: The referendum specified that the existing tax structure would not change.

Effects: The immediate result of the merger was that Louisville went from being the 65th largest city in the country to the 23rd. There will be some immediate cost savings. Council members get $40,000 each, 20 percent less than county commissioners got; each will have one staff member, for 26 total, whereas the city and county legislative units once had a combined total of 40. Longterm effects are unknown.

History: A previous attempt at consolidation, 17 years earlier, was spurred by fears that the nearby and newly consolidated Indianapolis would be too great a competitor for Louisville. Voters didn't share the concern and rejected consolidation. This time, fears were more local -- Lexington had become a serious challenger to Louisville's status as Kentucky's premier city; a majority of politicians and the Louisville Courier-Journal gave strong support. A narrow majority of voters -- 54 percent -- approved the consolidation.

7. Baton Rouge and East Baton Rouge Parish, La.

Year changed: 1949

Details: This is truly unique -- the country's only city-parish form of government. At the time it was the first consolidation in over 40 years, and it was the first modern-style consolidation, providing the innovation of differential tax and service districts. There is a metropolitan council with an elected mayor. All 12 council members are in single-member districts. Both mayor and council members are limited to three four-year terms. Suburban cities are allowed to opt out at will.

Taxing features: There are three service districts with appropriate tax rates -- the urban, industrial and rural. An interesting feature of the consolidation is that city and parish funds are still kept separate. If the person in charge of public works, for example, decides on a project, it must first be determined where the project lies; if it's in both the city and parish, then proportional funds must be taken from both accounts.

Results: "The fact that the plan still exists," says the city-parish Web site, "and that under it great strides have been made . . . is a testament not only to its drafters, but also to the tenacity and courage of those . . . charged with carrying it out." One hitch: The charter is being challenged by minority voters who say they are not being fairly represented.

History: Unprecedented growth at the end of World War II put a strain on services. Leaders began meeting and decided they could not continue to cope on their own. The referendum passed on its first try by a vote of 7,012 to 6,705.

8. Lexington and Fayette County, Ky.

Year changed: 1974

Details: Governing is by a strong elected mayor and a 15-member council, supplemented by an appointed chief administrative officer who oversees day-to-day functions. Mayor limited to three four-year terms. Twelve council members represent districts and are limited to six two-year terms; three are at-large and limited to three four-year terms. Sheriff retains powers and still collects taxes, but police chief became the main law enforcement officer.

Taxing features: There are three service districts, with appropriate tax rates. The general services district covers all of Fayette County. The full urban district covers the former city of Lexington. The partial urban district is a transitional area where residents pay the middle amount of taxes.

Results: A group from the Iowa State Association of Counties interviewed officials in Lexington last year and found a high degree of satisfaction. In a comprehensive communitywide review of the charter, no changes were made and only a few minor recommendations offered. According to Mayor Teresa Ann Isaac, Forbes magazine has named Lexington the 14th-best city for business and careers, and Expansion Management magazine named it the seventh-best city to locate a business. The government continues to eliminate duplication of services and has created a very strong relationship with the University of Kentucky and Fayette county schools.

History: Merger passed on the first try, with 69 percent of the vote, after only four months of campaigning. There was alleged government corruption, and rapid growth was overwhelming county government's ability to cope. Far from resisting change, residents were actually hungry for it.