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March 13, 2017.Indd 6,250 subscribers www.TML1.org Volume 68, Number 4 March 13, 2017 State, local leaders defend Key legislators to address city officials at tax exempt “muni bonds” TML Conference March 20-21 in Nashville City officials will hear from as Trump, U.S. Congress top lawmakers during TML’s Legislative Conference, slated for March 20-21 in Nashville. talk infrastructure plan Among those scheduled to speak are: Senate Majority Lead- BY ELAINE S. POVICH our taxing policy that has been in er Mark Norris; House Majority Stateline existence since 1913.” Leader Glen Casada; Sen. Ken But some Republicans on Cap- Yager, chairman of the Senate State Structures built with municipal itol Hill want to end the tax-exempt and Local Government Commit- bonds stand out in Columbia, Ohio. status of muni bonds as part of tee; Rep. Tim Wirgau, chairman There is the Columbia Metropolitan broader changes to the federal tax of the House Local Government Convention Center, and new park- Mark Norris Glen Casada code. That has many state and local Committee; Sen. Bo Watson, chair- ing garages for a revitalized restau- Senate Majority Leader House Majority Leader officials worried. man of the Senate Finance Com- rant and apartment district. Sleek, A city’s ability to borrow de- mittee; and Rep. Charles Sargent, futuristic water towers loom on pends on investors’ willingness to chairman of the House Finance the edge of town and new modern lend it money by purchasing bonds. Committee. pumps hum at the water plant where And the tax-exempt status of muni Gov. Bill Haslam, and Lt. Gov. the oldest structures date to 1906. bonds is part of what makes them Randy McNally will help kick off Nationwide, the “muni bond” so attractive to investors, especially the conference on Monday, March market has funded $1.65 trillion high-income taxpayers looking to 20, beginning at 1 p.m. House worth of projects for cities and other reduce their tax bills. Speaker Beth Harwell is scheduled governments over the past decade. But exempting the bonds from to speak during the Tuesday morn- The borrowed money has paid for federal taxes is projected to cost the ing breakfast. schools, roads, water and sewer U.S. Department of the Treasury Also on the agenda are Jus- systems, airports, bridges and other as much as $617 billion in revenue tin P. Wilson, Comptroller of the Ken Yager Tim Wirgau vital infrastructure. over the next decade, according to Treasury; Bob Rolfe, Department Senate Chair House Chair “These aren’t shiny baubles. the Tax Foundation, an independent of Economic and Community State & Local Government Local Government These are essential infrastructure,” tax analysis group. To many in Development Commissioner; and said Columbia Mayor Steve Ben- Washington, recouping that mon- Laurie Lee, executive director, De- jamin. “This is a sacrosanct part of See MUNI BONDS on Page 7 partment of Finance and Adminis- tration Benefits Administration. Conference registration opens What happens to current at 11 a.m. on Monday, March 20, followed by a buffet lunch at 12 WOTUS litigation with noon. The conference will kick off at 1 p.m. and run through 4 p.m. on Monday afternoon. new executive order? City officials are encouraged to attend the Senate Floor Session BY LISA SORONEN The current WOTUS regula- Bo Watson Charles Sargent tions are subject to complicated beginning at 4 p.m. Monday after- Executive Director noon, and the House Floor session Senate Chair House Chair State & Local Legal Center litigation. In October 2015 the Sixth Finance Ways & Means Finance Ways & Means Circuit issued a temporary stay of beginning at 5 p.m. The Waters of the United the regulations preventing them On Tuesday, March States Executive Order could from going into effect nationally. 21, things will get under- Monday, March 20 Tuesday, March 21 7:30 am Breakfast impact a Supreme Court case on In February 2016 the Sixth Circuit way at 7:30 a.m. with a 11:00 am Registration 8:00 am Speaker Beth Harwell what court has jurisdiction to hear ruled that it, rather than a federal breakfast served until 8 12:00 pm Buffet Lunch 8:15 am Rep. Charles Sargent a challenge to WOTUS and on the district court, has jurisdiction to a.m. The conference pro- 1:00 pm Lt. Gov. 8:30 am Laurie Lee Sixth Circuit’s decision to stay of rule on whether the WOTUS rule gram will begin at 8 a.m. Randy McNally Benefits Administration the current regulations. It is too exceeded the Clean Water Act. and continue until 10 a.m. 1:30 pm Gov. Bill Haslam 8:45 am Bob Rolfe soon to know exactly what will In January 2017 the Supreme The two-day confer- 1:45 pm Rep. Tim Wirgau ECD Commissioner happen but I speculate below. Court agreed to review the Sixth ence provides an excellent 2:00 pm Sen. Mark Norris 9:00 am Sen. Ken Yager President Trump’s execu- Circuit ruling that an appellate forum to network with 2:30 pm Sen. Bo Watson 9:15 am Rep. Glen Casada tive order Restoring the Rule of court, not a district court, has other municipal officials 2:45 pm Justin P. Wilson Law, Federalism, and Economic jurisdiction to rule on WOTUS. and interact with your leg- State Comptroller Growth by Reviewing the “Waters This case, National Association islators. For information 3:00 pm TML Staff Reports of the United States” Rule calls for of Manufacturers v. Department regarding registration and 4:00 pm Senate Floor Session the “rescinding or revising” of the of Defense, will not be heard un- hotel reservations, visit 5:00 pm House Floor Session Waters of the United States (WO- til next fall 2017—meaning the www.TML1.org TUS) definitional rule published Supreme Court may not issue an in the summer of 2015. Many state opinion in this case until as late as and local governments objected to June 2018. the broad nature of these regula- What will be the fate of all this Tennessee cities work to recover tions, in particular to the expansive WOTUS litigation over the current definition of ditches and the ambig- rule in light of the executive order? from March tornadoes, severe storms uous definition of tributaries. We don’t know, but the executive order directs the Attorney General BY KATE COIL The executive order acknowl- TML Communications Specialist edges that rewriting the WOTUS to “inform any court of such review and take such measures as he deems definitional regulations will re- Municipal crews across Ten- quire going through the lengthy appropriate concerning any such litigation pending the completion nessee are working to clean-up and complicated process under after damage resulting from tor- the Administrative Procedures of further administrative proceed- ings related to the rule.” nadoes and heavy thunderstorms Act which the 2015 final regula- on March 1. tions went through. This process The Attorney General may ask the Sixth Circuit to voluntarily At least five tornados touched involves proposing a new rule, down across the state, according to receiving and responding to (likely vacate its decision temporarily staying the regulations given that officials with the National Weather thousands of) comments, and issu- Service. ing a final rule. See WOTUS on Page 3 The Cool Springs area of Franklin and Brentwood reported some of the most damage, the result of an EF-1 tornado that trav- eled from Hillsboro Road, north of the Cool Springs Galleria mall, to east Concord Road. The funnel cloud cut a path that stretched 10.25 miles long and 250 yards wide with an estimated speed of 100 to 105 miles per hour. New transportation funding Damage reported by the city of Brentwood included warehouse is essential for meeting doors being blown, roof and wall damages to businesses, and large Tennessee’s future needs amounts of downed trees. The city’s GIS department has worked Tennessee’s flat state gas tax of 21.4 cents per gallon hasn’t been to collect damage along with updated since 1989. Due to inflation, increases in construction costs Brentwood Fire and Rescue and and the cost of land and better gas mileage, the state comptroller esti- city building inspectors. The city’s mates that 21.4 cents in 1989 is now worth approximately 11 cents a public works crews have been gallon. The money goes half as far as it once did. Without additional working to remove downed trees and power lines. April Shore with Brentwood’s 911 Center handles calls during the funding, it would take the state 50 years to complete its current list of A second EF-1 storm caused March storm event. Dispatchers worked during the storm to aid police, projects, and many cities and counties will be forced to raise property damage in the Antioch neighbor- fire, parks and public works crews as well as provide news updates taxes to pay for transportation. hood of Nashville. The storm had and take calls from local residents being affected by the storms. Good roads lead to good jobs. One of Tennessee’s most desirable winds of up to 90 miles per hour power outages were reported in Chattanooga, Red Bank, Hixson and struck between Cane Ridge attributes in recruiting jobs is our location on the map. If you want to Adams, Cedar Hill and other areas and Signal Mountain. Golf ball and and the Four Corners Marina. of Robertson County. distribute product around the country, there’s no better location. But tennis ball-sized hail were reported Another EF-1 tornado caused In East Tennessee, trees were in Hamilton and Marion counties.
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