An Act To Implement the Fund for the Efficient Delivery of Local and Regional Services
Maine Legislature, Session 122, LD 1637
Committee: State and Local Government
Sponsors: BARSTOW, ADAMS, FARRINGTON, WOODBURY, BARTLETT, DAMON, SCHNEIDER
Amends: 30-A MRSA §5681

Legislative Document 
No. 1637 
H.P.1155 
House of Representatives, May 3,2005 
An Act To Implement the Fund for the Efficient Delivery of Local 
and Regional Services 
Reference to the Committee on State and Local Government suggested and ordered printed. 
17/~ 
/J?7Ild£~ 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative BARSTOW of Gorham. (GOVERNOR'S BILL) 
Cosponsored by Senator SA V AGE of Knox and Representatives: ADAMS of Portland, 
FARRINGTON of Gorham, WOODBURY of Yarmouth, Senators: BARTLETT of 
Cumberland, DAMON of Hancock, SCHNEIDER of Penobscot. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 30-A MRSA §5681, sub-§3, as amended by IB 2003, c. 2, 
§2, is further amended to read: 
3. 
Revenue-sharing 
funds. 
To 
strengthen 
the 
state-municipal fiscal relationship pursuant to the findings and 
objectives 
of 
subsection 
1, 
there 
is established 
the 
Local 
Government 
Fund. 
To 
provide 
additional 
support 
for 
municipalities experiencing a 
higher-than-average property tax 
burden, 
there is established the Disproportionate Tax 
Burden 
Fund. 
To assist those municipalities that collaborate with other 
municipalities, counties or state agencies to obtain savings in 
the cost of delivering local and regional governmental services 
there is established the Fund for the Efficient Delivery of Local 
and Regional Services, which is administered pursuant to chapter 
.ill, 
Sec. 2. 30-A MRSA c. 231 is enacted to read: 
CHAPTER 231 
FUND FOR TQ;t:_j;n·_I_CU:ln·---.p~t.IYEJlY OF LOCAL 
AND REGIONAL SERVICES 
§6201. 
Definitions 
As 
use_d 
in 
th~tt~p.t.e_r, 
unl~s~he context 
o_therwise 
indicates, the followin9 terms have the followin9 meanin9s. 
1. 
Conmissioner. 
"Commissioner" means the Commissioner of 
Administrative and Financial Services~ 
2. 
Cooper_a...t.ive-.&e_rvic~L-.9r.aJlt. 
"Cooperative 
services 
.9-rant" means a 9rant award from the fund pursuant to section 6208 
to cover eli9ible costs of a gualifying project. 
3. 
Department. 
"Depj;p;:.t_ment" 
means 
the 
Department 
of 
Administrative and Financial Services. 
4. 
Eligicl)),e_appJ.J.~~t. __ 
'-'-~l.igj.ble 
a£plicant" 
means 
a 
municipality, county or re9ional 90vernment subdivision. 
5. 
Eligible costs. 
"Eli9ible costs" means the actual and 
9,J..J.:ect expenses incurred in implementj,ng a cooperative services 
grant or a planning grant awarded under section 6208, including 
expenses incurred in connection with the following activities for 
cooperative services grants and planning grants. 
Page l-LR2346(1) 
A. 
Eligible costs for a planning grant include the expense 
.Q.f....L 
(1) 
Studies 
to 
exgmine 
alternative 
methods 
adopted 
of 
by 
achieving collaboration. 
including 
those 
other municipalities; 
(2) 
Cost-benefit studies; and 
(3) 
Facilitation 
of 
community 
meetings 
and 
public 
outreach and education. 
B. 
Eligible costs for a cooperative services grant includes 
the expense of: 
(1) 
Execution 
and 
implementation of 
an 
interlocal 
agreement 
under 
chapter 
lIS. 
a 
tax 
base 
sharing 
arrangem~t or 
a~ber regional government mechanism 
for achieving collaboration: 
(2) 
Joint 
strategic 
planning 
or 
comprehensive 
or 
capital investment planning; 
(3) 
Public outreach and education: 
( 4) 
Collaboration 
or 
consolidation 
of 
offices 
or 
services: 
(5) 
Professional services. such as those provided by 
attorneys. consultants. facilitators and architects; and 
(6) 
Administrative 
services 
and 
costs. 
such 
as 
photocopying. 
printing. 
telephone service and travel 
costs. 
Administrative and other costs of ongoing operations that would 
ot.herwise be 
budgeted by 
a 
municipality. 
county or 
regional 
government subdivision are not eligible costs. 
6. 
Fund. 
Qf 
Local 
and 
subsection 3. 
"Fund" meg.j1S the Fund for the Efficient Delive.ry 
Regional Services established by section 
5681. 
7. 
Planning grant. 
"Planning grant" means a grant award 
from the fund pursuant to section 6208 to cover eligible costs of 
developing a qualifying project for a cooperative services grant. 
8. 
Oualifying 
project. 
"Qualifying 
project" 
means 
a 
project designed to achieve significant and sustainable savings 
in 
the 
cost 
of 
delivering 
local 
and 
regional 
governmental 
services 
that 
reduces 
the 
demand 
for 
property 
tax 
revenues 
through collaboratiye approaches to service delivery, 
enhanced 
regional deliyery systems, consolidated administrative services, 
broad-based purchasing alliances and interlocal agreements. 
9. 
Regional government subdivision. 
"Regional government 
subdivision" means: 
A. 
A regional planning commission or regional council of 
governments established under chapter 119: or 
B. 
A legal entity created by inter local agreement pursuant 
to chapter 115, 
§6202. 
Fund source: nonlapsing: dedicated. special revenue 
account 
The fund consists of revenues transferred from the Local 
Goyernment Fund pursuant to section 5681, subsection 5-B and any 
IJ.IDds receiyed as COn.tLUllJ.t.iQJ1 ... !LILQm priyate and public sources. 
Eligible inyestment earnings credited tQ the assets of the fund 
becQme part Qf 
t~..s..e...t.s of the fund. Any balance remaining in 
the fund at the end of any fiscal year must be carried forward to 
the next fiscal year. 
The fund is a dedicated, special revenue 
account. 
§6203. 
Fund administration 
The department shall administer the fund. 
The fund must be 
held separate and apart frQm all other money, funds and accounts. 
§6204. 
Uses of fund 
Except as otherwise provided by this section and section 
.5....G.81, 
subsection 3, the fund is available solely for grants for 
qualifying projects. The department may use the fund to coyer its 
.cQsts of administration, including contracting for services to 
administer the grants. 
Grant funds may not be used for reimbursement of costs or 
expenses incurred prior to an award from the fund. 
§6205. 
Eligibility: intergovernmental cooperation 
In accQrdance with the request for proPQsals issued by the 
department under section 6209, 
an eligible applicant may apm 
for a planning grant or a cQQperative services grant frQm the 
fund. 
In order to be eligible for 
a 
planning grant or 
a 
cooperative 
services 
grant, 
an 
eligible 
applicant 
must 
demQnstrate in its applicatiQn that the project for which it 
~g~_ a grant will bg undgrtakgn in coopgration with ong or more 
municipalities, countigs or regional govgrnment subdivisions. 
An 
gligible 
applica~may contract with 
nongovgrnmental 
ru:.9-anizations and individuals for thg purpose of carrying out 
projgcts supportgd by thg fund. 
In applying for a cooperativg servicgs grant. an eligible 
applicant must specify the type of gualifying project for which 
~istance is sought and how the project will reduce demand for 
property tax revenues. 
§6206. 
Local match 
The department may not require an eligible applicant to 
provide matching funds to be eligible for a cooperative services 
ru:..a..P~nd may not 
gi~reference or priority to an eligible 
applicant whose proposal provides matching funds. 
The department may rgquire an eligible applicant to provide 
m..a_tchin9.----.funds for a planning gllnt in an amount not to exceed 
50'10 of the total grant award requested, 
as determined by the 
~epartment in accordance with a 
request for proposals issued 
under section 6209, 
and may give preference or priority to an 
eligible applicant whose proposal provides matching funds. 
§6207. 
Funding criteria 
1. 
Planning 
grants. 
In 
evaluating 
and 
ranking 
an 
.application for a planning grant. thg review pangl established 
under 
section 
6208 
shall 
consider 
whethgr 
the 
technical 
assistancg and facilitation for which assistance is sought is 
reasonably 
likely 
to 
result 
in 
dgvelopment 
and 
subsequent 
s~bmission of a 
propo~al for a qualifying project; the projected 
estimate of the aggregate reduction in the demand for property 
tax revenue; 
and other related factors in accordance with 
a 
request for proposals issued by the department under section 6209. 
2. 
Co~e~~tive service~_g~~t$. 
In evaluating and ranking 
.~tach application for 
a 
cooperative services grant. the review 
~nel gstablished undgr section 6208 shall consider the aggregate 
reduction 
in 
the 
demand 
for 
property 
tax 
revenue 
in 
the 
geographical region covered by the municipalitigs, counties and 
regional government subdivisions cooperating in the qualifying 
project; and other related factors in accordance with a request 
for proposals issued by the department under section 6209. 
~08. Review panel; review and decision on grant applications 
1. 
CQmp9sition 
of 
review 
panel. 
A 
review 
panel 
is 
established consisting of the following members: 
A. 
The Director of the State Planning Office within the 
Executive Department or the director's designee: 
B. 
The commissioner or the commissioner's designee: 
C. 
The State Tax Assessor or assessor's designee: and 
D. 
Three municilll officials and one official of a count-y 
or 
regional 
government 
subdivision, 
selected 
by 
the 
commissioner, 
each of whom has successfully engaged in a 
regionalization effort. 
The 
commissioner 
shall 
consider 
geographic diversity, 
including rural and service center 
representation. 
2. 
Reyiew panel duties. 
The review panel established in 
subsection 1 shall: 
A. 
Determine 
whether 
each 
eligible 
applicant 
for 
a 
cooperative 
service$ 
grant or 
planning grant meets 
the 
eligibility criteria under section 6205 and provide written 
notice to that applicant of its eligibility determination: 
S!llil 
B. 
In accordance with the request for proposals issued 
under 
section 
6209, 
review 
and 
rank 
proposals 
from 
applicants eligible 
for 
cooperative 
services grants 
and 
planning grants 
under 
section 
6205 
against 
the 
funding 
criteria 
defin~~S~~Qn 6207 
and 
award 
coo~era~~ye 
services grants or planning grants to proposals that best 
meet 
the 
funding 
criteria in 
section 
6207 
subject 
to 
availability of funding. 
§6209. 
Request for proposals 
No later than November 1st of each year, 
the department 
shall issue a request for proposals in accordance with the Bureau 
of 
General 
Services 
Rules. 
Chapter 
that 
includes 
the 
schedules for submission and action on applications for grants 
under this chapter: procedures for scoring and ranking those 
applications: and procedures and information requirements related 
to 
a.!'plication 
submissions. 
The 
department 
shall 
provide 
reasonable 
notice 
to 
all 
eligible 
applicants 
about 
the 
QYailability of the fund and the solicitation of grant proposals. 
§62l0. Report 
By October 1st of each year, the department shall provide an 
annual report to the Inte_~overnmental Advisory Group established 
by Title 5, section 12004 I, subsection 75 C. 
The annual report 
must: 
1. 
Itemi~~ __ ~Usbux.JieJqeI1..t.f,i. 
Itemize disbursements from and 
indicate the current balance of the fund: 
2. 
DesCLj.~~~rri~rs __ Qr incentive~Describe any l;!arriers 
to or incentives for regionalization identified by the department 
through its administration of the fund; 
3. 
eligible 
eligible 
Identify 
1~9~~S~.L-~I~d~e~n~t~i~f~y __ ~1£e~s~s~o~n~s~~f~r~o~mlli-_w~h.~i~c±hL-~outdh~e~r 
applicants 
may 
learn and best practices that other 
applicants may follow: and 
4. 
Describe efforts. 
Describe the effect of the grants 
2warded, including t~success of regional efforts and the amount 
of documented and anticipated property tax savings. 
SUMMARY 
This bill provides for the administration and use of the 
Fund for the Efficient Delivery of Local and Regional Services. 
The fund is used to provide cooperative services and planning 
grants to fund projects that achieve significant and sustainable 
savings in the cost of delivery of services and that reduce the 
demand for property tax revenues through collaborative approaches 
to 
service 
delivery, 
enhanced 
regional 
delivery 
systems, 
consolidated 
administrative 
services, 
broad-based 
purchasing 
alliances and interlocal agreements.