 - Several municipal officials from Fremont County took the opportunity to testify in person about a proposed change to the state’s direct distribution formula for local governments during a legislative meeting last week in Dubois.){kind=link}
(Dubois, WY) – Several municipal officials from Fremont County took the opportunity to testify in person about a proposed change to the state’s direct distribution formula for local governments during a legislative meeting last week in Dubois.
The proposal, which came from the Wyoming Association of Municipalities and the Wyoming County Commissioners Association, would dedicate an additional 8 percent of state sales tax revenues to local governments.
‘More certainty’
Under Wyoming’s current direct distribution model, local governments receive 31 percent of statewide sales tax revenues – or about $73 million per year, Legislative Service Office Budget Fiscal Administrator Don Richards told the Joint Appropriations Committee during last week’s meeting.
The proposal from WAM and WCCA would increase the local portion to 39 percent, or about $77 million per year, Richards said – an amount that is only “modestly more than the current appropriation.”
However, the proposal would also “codify” the formula into state statute, Richards said – so the direct distribution amount would no longer be “subject to political discussion and amendment” by the Wyoming Legislature every biennium.
“(This) would provide more certainty for local governments in terms of their planning,” Richards said.
WCCA Executive Director Jerimiah Rieman said the legislative “wrangling” that is currently a part of Wyoming’s sales tax distribution process can leave local governments wondering, “Are we going to even get direct distribution?”
“Every year, my members are concerned about whether the direct distribution is going to be there,” he said. “So I think (this proposal) solves a lot of issues for all of us.”
WAM Executive Director Ashley Harpstreith agreed that the proposal “really moves us to a stable tax structure for local governments” – and Riverton City Administrator Kyle Butterfield echoed that comment when he addressed the committee later in the meeting.
“The stability (in this proposal) will greatly benefit the City of Riverton as we plan for future improvements and ensure that we’re providing the core services necessary for our community,” Butterfield said.
Riverton uses its direct distribution to support infrastructure projects and law enforcement capabilities, he explained, referring to the funds as “very critical.”
“As it relates to the City of Riverton, direct distribution is very important,” Butterfield said. “We prioritize these funds for infrastructure projects and also to support our law enforcement capabilities.”
Over the past five years, Riverton has received an average of $2.6 million in sales and use tax revenues and $1.5 million in direct distribution funding annually, Butterfield said – a sizable portion of the city’s general fund, which ranges between $10 million and $12 million each year.
“You can see where we are very sales tax dependent,” Butterfield said. “We’re very dependent on the direct distribution and have felt grateful through the years for the allocation received from the legislature. (So) we appreciate that you’re looking at this.”
Dubois Town Clerk and Treasurer Sandy Hust testified about the need for stability in the direct distribution formula as well.
“While you can manage your funds to be able to meet your needs, you still need to be able to have that reassurance that those funds are going to be there,” she said.
In Dubois, the direct distribution from the state goes “directly into our general account” to help cover day-to-day operations and property maintenance issues, Mayor Patricia Neveaux said, noting that the current Dubois Town Hall facility, which was constructed in the 1970s, needs “some upgrades – drastically,” and the local community center is “also very old,” with nine heat pumps that need to be replaced at a cost of about $60,000 each.
The town’s most recent direct distribution – which amounted to about $97,000 – “will help at least with some of that … to start with,” Neveaux said, pointing out that Dubois also lost about $84,000 in property tax income this year.
The town has an airport to maintain as well, she added – not to mention streets and sidewalks.
Hust said the direct distribution is “instrumental” in helping the municipality maintain its pedestrian infrastructure so “we don’t have people trip on our sidewalks” and “we do have a safe place for visitors to our community.”
“You all have been in here in the summer and you’ve seen what it gets like,” she said. “We still have to maintain our infrastructure that is heavily used by our visitors.”
The local community of residents is “aging,” too, Hust said, and “we need to make sure that our people are being taken care of.”
“We have an active senior center, (and) the town owns that building, so we want to make sure that we have the funds set aside to be able to help,” she said. “All of this money comes into our general fund to be able to provide the funds to take care of this stuff.”
‘Get this right’
Wyoming Sen. Tim Salazar, R-Riverton, who chairs the Senate Appropriations Committee, said Neveaux and Hust represent “exactly” the kind of “leadership that we have in our small communities, where they’re doing the very best they can with the allocated dollars that they have.”
“I know how important these dollars are for these local, small communities,” he said. “I know you’re doing the very best you can with the dollars that you’re receiving and just appreciate you very much.”
As state lawmakers continue studying potential changes to the direct distribution formula, it will be important to ensure that “we don’t … hurt, in any way, our small communities,” Salazar said.
He also thanked Butterfield, asking him to stay in touch as the committee continues working on potential changes to the direct distribution formula so lawmakers can “hear how it directly affects Riverton.”
“We do need to get this right, (and) we cannot be in a rush,” Salazar said. “Between now and the end of the year … I’m sure we’ll have many discussions – not only amongst ourselves, but with the public and the stakeholders – to make sure that we do this right. (I) am committed to making sure those discussions occur between now and December.”
The committee did not take any action on the direct distribution funding topic this month.
The next Joint Appropriations Committee meeting is scheduled to take place Oct. 30-31 in Cheyenne, followed by additional meetings Dec. 1-5 and Dec. 8-12, also in Cheyenne.