Germantown aldermen adopt legislative agenda

By , Daily Memphian Published: March 02, 2020 4:05 AM CT

Germantown aldermen have approved their legislative wish list, outlining priorities and putting a heavy focus on funding issues.

The Tennessee Municipal League developed a list of priorities and presented them at an area meeting in Millington in December. TML offered six items, and Germantown will include five of them as part of its legislative agenda. 

<strong>Rocky Janda</strong>

Rocky Janda

In previous years, the mayor and some aldermen have traveled to Nashville to meet with legislators about the agenda but Alderman Rocky Janda said no date has been scheduled for this year.

Germantown’s priorities:

Modifying the Basic Education Program (BEP): Through BEP, the state is supposed to provide 65% of school funding with local government providing the remainder. However, local school and city leaders have argued the 65% from the state is inadequate, and that the state doesn’t even provide that full amount.

The current amount Tennessee is putting into public education funds teacher salaries at about $43,000, but the average statewide is $52,455. Many districts are trying to remain competitive by amending teacher salaries to reflect that statewide average. As a result, local governments are having to make up the difference. TML says if the state were to fund its full 65% commitment, funding would increase by $944 million.

Germantown leaders expect Shelby County’s legislative delegation to file a bill soon addressing the issue, and GMSD also is asking for additional education funding as part of its legislative agenda.


Germantown school leaders lay out legislative wish list


Giving cities a bigger share of sales tax revenue: Cities want to increase the local share of sales tax revenue that goes to the state. Municipalities get 3.6% presently.

The local share was set originally at 4.6% in 1947 but as the state raised its sales tax, the local share did not increase proportionally.

For example, the state sales tax, which is in addition to a local sales tax of varying amounts, increased in 1995 from 5.5% to 6% to help fund the original BEP. In 2002, the state tax increased to the current 7% and the added revenue went to the state’s general fund to alleviate some fiscal challenges.

Germantown supports TML’s proposal to increase the local share as the state experiences financial stability.

Legislation to that effect has been proposed by state Sen. Steven Dickerson, R-Nashville, and state Rep. Dale Carr, R-Sevierville.

<strong>Scott Sanders</strong>

Scott Sanders

“According to TML, 92% of the state sales tax collection is generated from inside municipal boundaries, so they make sense,” Alderman Scott Sanders said of the proposed bills addressing the issue.

“Passage of these bills will greatly assist us in providing clean water and sewer, police and fire protection, education, parks and recreation, garbage collection and street repair for our citizens.” 

In addition to the sales tax question, Janda said the city has to find other funding sources to replace lost revenue from the Hall state income tax on investments. The Hall tax will be repealed fully in January 2021.

“We have to have some funding from somewhere to replace the Hall tax,” Janda said. “I believe the change in some of the sales tax would help take burden (from the lack of Hall tax revenue).”

Increasing the local share of tax on individual sale items:

Another revenue-related proposal from TML that Germantown supports addresses the tax on individual sale items. In 2002, the state increased the amount subject to sales tax from $1,600 to $3,200 with the state keeping the portion above $1,600. Germantown wants a larger share, and Memphis Mayor Jim Strickland recently voiced his support for a larger local share as well.


Strickland faces ‘worst budget year as mayor’


Legislation addressing the issue has been proposed by state Sen. Ed Jackson, R-Jackson, and Carr.

Reimbursing municipalities for finance officers: In 2007, the state began requiring all municipalities to have a certified municipal finance officer. The Municipal Technical Advisory Service (MTAS) and the state comptroller developed curriculum and standards to help individuals obtain and keep the designation. If municipalities do not comply, they receive a reduction in the already-reduced share of sales tax revenue but will be refunded once they come into compliance.

Counties, on the other hand, are not required to have certified finance officers. If they do, they can receive a one-time $1,000 stipend from the comptroller’s office for certified finance officers. Counties can also apply for additional reimbursements as the officer travels to training.

Cities want the same treatment.

Germantown supports TML’s proposal asking the state to fund an annual $1,000 stipend and reimburse the certified finance officer’s travel expenses for cities.

Legislation has been proposed by state Sen. John Stevens, R-Huntingdon, and state Rep. Ron Travis, R-Dayton.

Collecting tax from short-term rentals: While short-term lodging rentals of under 30 days are not allowed in Germantown, the city backs TML’s plan to ask the state to collect hotel and motel tax from such businesses. Nashville and Memphis have entered into agreements with companies handling collection of the taxes. 

Many owners of facilities providing short-term rentals are unaware of their obligation to collect and pay the tax. Online short-term lodging sites are reluctant to enter an agreement collecting the tax, and it is tough for cities and counties to keep track of the numerous Airbnb’s that may be present in a city.

Therefore, the city is in favor of legislation proposing to collect short-term lodging taxes and distribute the funds to the appropriate local entity.

Legislation has been proposed by Stevens and state Rep. Jerome Moon, R-Maryville.

The one item on the TML list not included in Germantown’s wish list calls for support of legislation that would allow municipalities to purchase Narcan with drug funds. However, it was not part of the legislative agenda Germantown approved. Sanders said he was unsure why the administration did not support the measure.

“That bill would allow use of funds from the drug fund, which is money seized and forfeited from criminal offenders,” he said. “Narcan, which is quite expensive, can save the lives of our citizens and visitors who suffer from opioid overdose.” 

Additionally, under the proposal, the drug fund could help provide protective gear and immunizations for first responders who are at risk for various diseases. It is purchased from the general fund now, and Sanders said he believed the drug fund could be put towards getting the gear. 

Neither Mayor Mike Palazzolo nor City Administrator Patrick Lawton could be reached for comment.

Topics

Germantown Germantown Board of Mayor and Aldermen Legislation
Abigail Warren

Abigail Warren

Abigail Warren is a lifelong resident of Shelby County and a graduate of the University of Memphis. She has worked for several local publications and covers the suburbs for The Daily Memphian.


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