4 local government in texas

By Loren Miller

MunicipalCounty

Special DistrictMetropolitan Area

COGs

Local Government• When most people think about government, they

think about the national government.

• Of all three levels of government, local government has the greatest impact on our daily lives.– Drinking water– Schools– Streets– Parks and recreation– Police and Fire Protection

Local Government• Local Government takes many forms:

– Municipalities (cities and towns)• 1,200+

– Counties• 254

– Special Districts (water, hospital, schools, housing, conservation, community colleges, etc.)• 3000+

– Councils of Governments

All collect revenue and provide services

Local Government• Dillon’s Rule: (followed in Texas and in 40 states)

– A legal principle that local governments have only those powers granted by their state government

State Powers

Local Powers

Cities, Counties, and Special Districts are creatures of the State

Local Government• Cooley Doctrine

– Local government is a matter of absolute right and the state may not take it away

Local power is not dependent upon the state

Local Government• Local governments may receive part of their money

from the state or national government.

• States often complain about unfunded federal mandates but local governments face the same dilemma from the state– Meeting jail standards– Providing access for the disabled– Improving the quality of air– Meeting federal and state educational standards

State Government Employment

Government Employees 318,000 2

Employees per 10,000 population 126 44

Average Earnings $50,139 27

Per Capita Government Expenditure $4,411 50

Per Capita Government Debt $1,210 48

Number Texas’s Rank

2011

Local Government Employment

Government Employees 1,134,000 2

Employees per 10,000 population 451 7

Average Earnings $42,489 35

Per Capita Government Expenditure $4,820 21

Per Capita Government Debt $7,868 3

Number Texas’s Rank

2011

Municipal Governments• City government powers are outlined and restricted

by state and national constitutions, municipal charters, and statutes.

• Texas has two legal classifications of cities:– General Law Cities: a community with a population

of 201 or more; limited by state law– Home Rule Cities: a community with a population of

5,000 or more; locally adopt and revise a charter; must be approved in an election

General Law Cities• A general law city has extraterritorial jurisdiction

over zoning and building for half a mile beyond its formal boundaries.

• A general law city may annex territory no greater than 10 percent of their existing land but the residents must approve of the annexation by a majority vote.

Home Rule Cities• A city charter establishes the powers of municipal

officers, sets salaries and terms of office, and spells out procedures for passing, repealing or amending city ordinances.

• A home rule city can exercise powers not given to the state or to general law cities:– Recall (El Paso, College Station)– Initiative (San Antonio, Farmers Branch)– Referendum– Annexation

Home Rule Cities• A home rule city also has extraterritorial

jurisdiction over zoning and building for five miles beyond their border.

• Home rule cities can annex territory by a simple majority vote of the city council and it does not require the approval of the residents of the area to be annexed.

Forms of Municipal Government

Strong Mayor Council

Among larger American cities, the strong mayor council is the predominant structure (New York, Los Angeles, Chicago, Philadelphia, Houston)

The mayor is the chief administrator and the political head of the city

-- provides strong leadership but there is the threat of corruption



Characteristics:-- Mayor is elected at large and has the power to hire and fire department heads-- Mayor has the power to veto council actions-- Mayor has budgetary power (plan for raising and spending city money)-- Mayor sets the agenda for the council


Voters

Mayor Council

Department Heads

Appoints with approval of the council

Forms of Municipal GovernmentWeak Mayor Council

The mayor’s position is weak because the office shares appointive and removal power over city personnel; power is decentralized.

The mayor is no more powerful than the other members of the council.

Weak Mayor Council

Voters

Mayor & Council Other Officials

Department Heads


Council-Manager

The council-manager system was initiated as a reform during the Progressive Era (1900-1917). Reformers attempted to substitute “efficient and businesslike management” for “boss rule.”

-- seen as a means of separating politics from the administration of government-- first implemented in 1913 in Texas by Amarillo and by Terrell-- used in Dallas, San Antonio, and Plano


Council-Manager

The mayor and the council make decisions after debate on policy issues such as taxation, budgeting, annexation and services.

-- most city managers exert strong influence on these matters-- once policy is made, the city manager directs an appropriate department to implement that policy


Council-Manager

The city manager is professionally trained (MPA), earns a competitive salary, and serves at the pleasure of the council.

-- the city manager in Dallas makes $400,000/year (2014)

-- councils and mayors are not supposed to “micromanage” departments

-- tend to respond more to elite and middle class concerns rather than the concerns of the working class

Council-Manager

Voters

Mayor Council

Department Heads

City Manager


Commission

This was approved by the Texas legislature for Galveston after a hurricane demolished the city in 1900. Today, none of Texas’s cities operate under this form of government.

Commission members are elected by the people and perform both executive and legislative functions.

-- they make up a municipal legislature and also administer a city department

Commission

Voters

City Commission

Department Heads

Municipal Elections

• Mayors and city council members are usually elected for terms according to the city charter (usually 2 to 4 years).

• Many cities have adopted term limits– Some limit the total number of terms while others

limit the number of consecutive terms that a member can serve

• All city elections in Texas are nonpartisan

Municipal Elections• Cities have the choice of using at-large or a single-

member district system– In a pure at-large system all of the voters elect all of

the members of the council • The membership of the council tends to be

homogeneous (less conflict) – In an at-large place system all of the voters vote for

candidates who run for specific seats– In a single-member district system voters cast a ballot

for a candidate who resides within their district• Leads to greater diversity within the council and

also leads to increased pressure to “gerrymander”

Municipal Elections

• A small number of Texas cities and some school boards use cumulative voting– People cast the number of votes equal to the

number of seats available• If there are six seats a voter may cast 3 votes for

one candidate, 2 for a second, and 1 for a third; or they may cast 6 votes for one candidate

– This has been used to increase minority representation

Municipal Services

• For most people, city government’s primary job is to provide for basic services, but limited resources often lead to competing demands– Police and fire protection– Streets– Water, sewer, and sanitation– Parks and recreation

• City government also provides for regulation– Zoning– Construction– Food service

Municipal Finances• Most city governments in Texas face a serious

financial dilemma: they barely have enough money to provide basic services and must reject or shortchange new services

• Cities’ two largest revenue sources, sales tax and property tax, are limited by state law– Regressive taxes

• Texas cities are relying more heavily on fees– Liquor licenses, water rates, and franchise fees for

cable television providers

TEXAS MAJOR STATE AND LOCAL TAXES AS A PERCENTAGE OF HOUSEHOLD INCOME

Lower Income

Lower Middle

Middle Income

Upper Middle

Upper Income

Sales Tax 5.9% 3.5% 2.8% 2.6% 1.8%

Gas Tax 0.8% 0.5% 0.4% 0.3% 0.2%

Motor Vehicle

Tax0.7% 0.5% 0.5%

0.4% 0.3%

Local Property

Tax4.7% 2.7% 2.3% 2.3% 2.0%

Texas State Comptroller, 2007

Municipal Finances: Taxes• Texas allows municipalities to levy taxes based on

the value of property– The problem with property taxes is that poorer cities

with low property values must charge a high rate to provide for minimum services• Highland Park tax rate: 22 cents/$100 valuation• Wylie tax rate: 90 cents/$100 valuation

• The other major source of revenue is the optional 1.25 – 2 percent sales tax– The sum of city, county, and special district sales tax

cannot exceed 2 percent

Municipal Finances: Fees• When residents are charged for a particular

government service, this is called a user fee– These fees are popular because voters often

oppose higher taxes but generally believe that people should pay for what they actually use• Cities may charge for city provided electricity,

water, sewage, and garbage collection• Other charges include swimming pool fees, golf

course fees and ambulance service; inspection fees, building fees, and beer and liquor licenses

Municipal Finances: Bonds• Money for capital improvements and emergencies

often must be obtained through the sale of municipal bonds– Construction of city buildings, parks, recreation

centers– Flood or hurricane damage

• Cities may issue bonds to be repaid from taxes and must be approved by the voters of the city

Abatements and Exemptions• A tax abatement is a tax reduction or exemption

granted by local government to an industry or business.

• Tax exemptions– Homestead exemption (up to 20% of the assessed

value of the property)– Additional exemption for disabled veterans and for

homeowners 65 years of age and older

CITY REVENUE OF HOUSTON IN 2012(%)

27

48

10

15

Column1

Sales TaxsProperty TaxesFranchise FeesOther

Problems with Municipal Governments

1) The rapid shift of the population to urban areas has seriously taxed the city government’s ability to provide necessary services (water, sewer, police and fire protection).

2) Middle and upper income flight has decreased the tax base (property tax)

Counties• Counties are units of local government that are limited

to those structures and powers specifically granted by state law– If county officials want to respond to a local problem by

taking an action not specifically allowed by state law, they must obtain authorization from the Texas legislature

• Texas has 254 counties, the most in the nation, and all counties in Texas have the same governmental structure – Loving County (population 82) has the same structure as

Harris County (population 4,180,000)– Rockwall County (147 square miles) has the same

structure as Brewster County (over 6,000 square miles)

Counties• The Texas Constitution provides for the election of

four county commissioners, county and district attorneys, a county sheriff, a county clerk, a district clerk, a county tax assessor-collector, a county treasurer, constables, as well as judicial officers– All are elected in partisan elections and serve a four

year term– County officials tend to think of their office as their

personal fiefdom and resent interference by other officials• Hence, Texas counties are usually highly

decentralized

County Voters Precinct 1 Precinct 2 Precinct 3 Precinct 4

Dist. JudgeDist. Sheriff County County Tax Surveyor TreasurerClerk Clerk Attorney Assessor

Commissioners Court

Justice of the Constable Peace

Comm.Precinct 1

Comm.Precinct 2

Comm.Precinct 3

Comm.Precinct 4

CountyJudge

Auditor

Commissioners Court• The Commissioners Court is the board of directors

for the county. It is composed of four commissioners and the county judge.– Commissioners Court has executive and legislative

duties, not judicial– The commissioners are elected for four year

staggered terms– They establish the budget for the county and set the

tax rate

Amount Needed = Assessed Value of Property x Rate

Rate = Amount Needed/Assessed Value

Collin County Commissioner’s Salary: $107,811 (2013)

County Property Tax Rates2012

County Total Tax Rate Per $100

Five Highest RatesDuvall $1.12Throckmorton $1.04Jim Hogg $1.03King $1.01Foard $0.95

Five Lowest RatesDallas $0.24Collin $0.24Upton $0.23Morris $0.23Midland $0.20

County Finance

• Just as the structure of county government is frozen in the Texas Constitution, so is the county’s power to tax and to spend

• The Texas Constitution authorizes county governments to collect taxes on property– They may impose higher property taxes that would

generate up to 8 percent more revenue than the previous year without citizen’s ability to initiate a roll back on the higher rate

County Finance

• Counties receive small amounts of money from various sources that add up to an important part of their revenue– Fees on the sale of liquor– Various motor vehicle taxes and fees– Traffic fines

• Counties may borrow money through bonds to pay for capital improvements (new jail; new court house)

County Judge

• The county judge generally is the most influential county leader– Presides over Commissioners Court– In rural counties they also hear cases in County

Court• Does not need to be a lawyer

– Has no formal authority over other elected officials, but has influence over their budget

Collin County Judge’s Salary: $131,990 (2013

County Sheriff

• The county sheriff, as chief law enforcement officer in the county, is charged with keeping the peace in the county.– Appoints deputies– Oversees the county jail and its prisoners– Usually focuses on crime in unincorporated areas

and leaves law enforcement in the cities primarily to municipal police

Collin County Sheriff’s Salary: $138,792 + $9,100 Auto (2013)

County Law Enforcement• The county judge in rural counties hears minor

civil and criminal cases (A & B misdemeanors) in County Court

• Each county has from one to eight justice of the peace precincts (number is decided by Commissioners Court)– Handle minor civil (small claims) and criminal (Class

C) misdemeanors– Serve as coroner

• Constables assist the JPs by serving papers

Collin County Salaries (2013): Justice of the Peace -- $94,753 Constable -- $89,762

County/District Attorney

• District attorneys generally focus their attention on the district court (felonies)

• County attorneys represent the state in civil and criminal cases and advise county officials

• Some counties have both a county attorney and a district attorney, while other counties may have one or the other

Collin County Salary: $146,565 (2013)

County Clerk

• The county clerk keeps records and handles various paperwork chores for both the county court and the commissioners court.

• In addition, the county clerk files legal documents (such as deeds, mortgages, and contracts) in the county’s public records and maintains the county’s vital statistics (births, deaths, marriage records).


County Tax Assessor-Collector

• The county tax appraisal district assesses property values in the county, so the County Tax Assessor-Collector no longer (since 1982) assesses property values.

• They collect county taxes and fees, including license tag fees for motor vehicles.

• This office also handles voter registration.


County Treasurer & Auditor

• The county treasurer receives and pays out county funds authorized by the commissioners court.

• A county of 10,000 or more people must have a county auditor, appointed by the county’s district court judges.– Checks the account books and records of officials

who handle county funds

Problems with County Government

1) Obsolete – difficult to cope with a primarily urban state; principally a rural oriented structure.

2) Lack of Centralization – too many people are elected and independent; lack of coordinated planning. Difficult for voters to intelligently choose officeholders (long ballot)

3) Graft and Corruption – state law prohibits competitive bidding; commissioners decide who gets the contracts to work in their precincts; spoils system is used for hiring.

-- Much of the money contributed to county elected officials come from firms or people who do business with the county

Special Districts• A special district is a unit of local government that

performs a single service in a limited geographic area. Districts can be created to do almost anything that is legal.– Drainage districts– Community College districts– Library districts– Metropolitan transit authorities

• The number of special districts has increased dramatically in the last 50 years. – There are more special districts in the United States than any

other single type of government – Only Illinois and California have more special districts than Texas

Special Districts in Texas

1952 1962 1972 1982 1992 2002 2012

491 733 1,215 1,681 2,266 2,245 2,800+

Special districts are the fasting growing unit of government in the United States and in Texas

Special Districts• There are two types of special districts in Texas:

– Independent school district– Nonschool special district

• The special district must be chartered by the state or otherwise approved by the Texas legislature.– They have taxing authority (property; sales tax; tolls)– They are independent from other governments

• The Plano Independent School District is completely independent from Plano’s city government

Special Districts• Why create a special district?

– A city or county may have limited revenue• They may have reached the state-mandated sales tax limit of

2%– Only a small area within a city or county may need the

service. Why tax everyone?– A developer wants to provide water and sewerage for a

subdivision that lies outside the city limits.• Municipal Utility District (MUD)

– The demand for a service may extend beyond a single jurisdiction. • A river authority with the power to govern the use of water

throughout the river’s watershed

Community College Districts• Each community college district is governed by an

elected board that has the power to set property tax rates, issue bonds (subject to voter approval), and adopt an annual budget.

• There are 50 community college districts in Texas.

• Community colleges are funded by state appropriations, student tuition and fees, local property tax, and some federal grants.

Funding Sources for Collin College(%)

31.1

15.930.7

15.8

6.5

Column1

Property TaxStateFederalTuition and FeesMisc.

2012-13

Special Districts• Problems with special districts

– They are sometimes called “hidden governments” because the actions of district officials and employees are less visible than if a county or city provided the services; board elections are not held at the same time as general elections, so the voter turnout is quite low

– The cost of borrowing money is quite high as they are forced to issue revenue bonds (paid from fees collected for the service) and pay a high interest rate

– Because special districts are usually quite small, they may purchase goods and services in limited quantities, paying higher prices

School Districts• More than 1000 Texas school districts have been

created by the Texas legislature.– Governed by a popularly elected, nonsalaried board of

trustees– Elections are nonpartisan and do not coincide with

statewide elections; in urban areas, city and school board elections may coincide (usually the second Saturday in May)

– The board makes district policy and are responsible for hiring a superintendent who manages the day-to-day operation of the district• Board members often make political demands on

the superintendent

School Districts• Public education has become a shared responsibility

(both financially and from a policy perspective) with increased state and federal requirements for testing students

• Different school districts have varied sources of financial support

• The state’s system of funding public education has long been controversial as the bulk of funds for many school districts is the property tax

Funding Sources for Texas Schools(%)

47

43

10

Column1

LocalStateFederal

2011

Houston and El Paso(%)

2011

Houston El Paso0

10

20

30

40

50

60

70

LocalStateFederal

Houston El Paso

Councils of Government• Although the needs of local government vary, the

basics of providing governmental services are the same for virtually all local governments.– Nearly all municipal and county governments, as well as most

special districts, participate in a council of government (COG).– COGs have been created to allow cooperation and

communication by local governments within a specific region.– Because COGs are not governments, they have no taxing power

and cannot pass laws, rules or ordinances• They are used to provide training for city managers, council

members, mayors, and other elected and appointed officials• They are also useful in planning for future regional

environment, transportation, and land use issues

4 local government in texas

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