This bill results in a potential savings to municipalities, as it would allow savings associated with economies of scale. The level of savings would depend upon the functions that were jointly performed and the number of municipalities involved. This bill gives municipalities blanket authority to perform jointly any function the statutes or special acts allow them to perform individually. It applies to towns, cities, boroughs, consolidated towns and cities, and consolidated towns and boroughs. At least once every five years, the legislative bodies of the participating municipalities must review any agreement to jointly perform functions and assess its results.
Current law allows municipalities to perform only certain specific functions jointly.
In a number of cases, it requires them to form interlocal advisory boards, designate interlocal employees, and take other steps in order to do so. Municipalities can also make agreements to share real and personal property tax revenue. It restricts these agreements to a specific, but long, list of municipal functions and services. The proposed agreement must be submitted to the local legislative bodies, which must hold at least one hearing on the proposal, consider suggesting changes, and approve or reject the final proposal. Municipal Revenue Sharing PA 00-85 authorized two or more municipal chief elected officials to initiate a process to agree to share real and personal property tax revenue.