Laserfiche WebLink
<br />MAJOR PROBLEMS 39 <br /> <br />state line, and usually do not directly affect the assessed valuation of <br />the municipality. Municipal revenues are often based on sales tax re- <br />ceipts,. user fees and other fees which tend to increase with population. <br />In most cases analyzed, these increased revenues should be adequate to <br />cover operating costs, but not major capital improvements. Analysis of <br />the six case study areas verified this shortage of capital financing. <br />Rock Springs, Wyoming and other energy-impacted communities in the Rocky <br />Mountain Region also have found this to be the case. <br /> <br />If municipalities fail to provide needed public facilities, particularly <br />water and sewer systems, the ability of the community to provide adequate <br />housing at reasonable costs is seriously impaired. Under these circum- <br />stances, construction of new housing will require wells and septic tanks <br />or other less than satisfactory arrangements. This, of course, creates <br />long-term problems and adds to the cost of new housing. <br /> <br />Municipalities have little incentive to finance capital improvements <br />through debt because the burden of repayment cannot be passed on to <br />energy companies. Water and sewer tap fees are a more reasonable source <br />of funds. Other potential revenue sources to finance municipal capital <br />needs are sales tax increases, direct aid from energy developers, EPA <br />grants and other federal and state assistance. <br /> <br />The questions are then, how can municipalities be assisted in dealing with <br />front-end financing needs primarily for capital facilities; and how can <br />a more equitable distribution of tax revenues among school districts, <br />counties and municipalities be achieved? If these problems can be dealt <br />with, the ability of municipalities to finance needed capital improvements <br />will be measurably enhanced. <br /> <br />The Need for a New Source of Front-End Financing <br />The lack of funds that can be used in meeting front-end financing needs on <br />a timely basis is a critical problem, In the six case studies, for example, <br />there appears to be a need for up to $30 million in assistance to municipal- <br />ties. This estimate is under the most intensive development profile and <br /> <br />0422 <br />