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Subcommittee approves amendment requiring referendum for newly incorporated cities to impose operating millage
Summary
S.102, a bill allowing cities with no operating millage to impose an operating millage to generate one-third of general fund expenses, was advanced as amended to require voter approval by referendum for municipalities that previously had no operating millage.
The subcommittee voted to give a favorable report to S.102 with an amendment requiring a local referendum before a city that previously had no operating millage may impose one.
S.102 provides a mechanism for cities that had no operating millage on Jan. 1, 2025 (or that incorporate after that date) to impose an operating millage that would generate up to one-third of the municipalitys prior-year general fund expenses. During discussion the committee considered technical changes for newly incorporated cities that lack a prior-year budget. Municipal association representatives said they were not enthusiastic about a blanket requirement but acknowledged the referendum language as an acceptable compromise.
Under the amendment the decision to impose an operating millage in a previously non-millage city would be submitted to local voters. The subcommittee adopted the amendment and advanced the bill by voice vote.
Supporters said the change protects local control and ensures voters in newly incorporated or previously non-millage municipalities have a direct say before a new operating millage is imposed. Municipal staff and association representatives asked for technical drafting to align effective dates and application to newly incorporated municipalities.
