Annual Report of Funding

Land Use Regulation Commission

to the

Joint Standing Committees on

Agriculture, Conservation and Forestry

and Taxation

of the

124^th Maine Legislature,

First Regular Session

 

 

 

 

 

 

 

 

 

 

January 14, 2009

Submitted by

Maine Department of Conservation

Land Use Regulation Commission

22 State House Station

Augusta, Maine  04333-0022

207-287-2631

 

 

 

 

 

 

This report has been prepared for the Committees as required by Public Law, Chapter 541, H.P. 670 - L.D. 885, PART B, “An Act to Implement the Recommendations of the Commission to Study the Costs of Providing Certain Services in the Unorganized Territories.”

 

The change was brought about based upon recommendations from the report of the “Commission to Study the Cost of Providing Certain Services in the Unorganized Territories.”

 

The specific areas of the law affecting LURC relate to changes on how the funding for LURC Services are assessed and allocated. The law specifically made changes to the amounts collected from both the Municipal Cost Component of the Unorganized Territory Education and Services Fund which is collected from the Taxpayers of the Unorganized Territory Tax District; and also from the Service Fees collected from the Towns and Plantations within LURC’s jurisdiction. The actual text of that specific area of the law is as follows:

 

Title 12§685-G. Funding

 

1. Unorganized territories.  Beginning with fiscal year 2009-10, funding for services and activities of the commission for planning, permitting and ensuring compliance in the unorganized territories must be assessed and allocated to the unorganized territories through a fee equal to .013% of the most recent equalized state valuation established by the State Tax Assessor. This fee must be collected through the municipal cost component under Title 36, chapter 115.

 

2. Towns and plantations.  Beginning with fiscal year 2009-10, a town or a plantation in the commission's jurisdiction that elects not to administer land use controls at the local level but receives commission services or a town or plantation with a portion of its land under the commission's jurisdiction and receiving commission services, including planning, permitting and ensuring compliance, must be assessed a fee equal to .015% of the most recent equalized state valuation established by the State Tax Assessor for that town or plantation or that portion of a town or plantation under the commission's jurisdiction. The State Tax Assessor shall issue a warrant to each such town or plantation no later than March 1st of each year. The warrant is payable on demand. Interest charges on unpaid fees begin on June 30th of each year and are compounded monthly at the interest rate for unpaid property tax as established by the State Tax Assessor for the unorganized territory. For any assessment that remains unpaid as of September 1st of the year in which it is due, state revenue sharing to that town or plantation must be reduced by an amount equal to any unpaid warrant amount plus any accrued interest, until the amount is paid. These fees must be deposited to the General Fund.

 

3. Report.  By January 15, 2009 and annually thereafter, the commission shall report to the joint standing committees of the Legislature having jurisdiction over conservation matters and taxation matters regarding commission funding and other financial matters. The report must cover the 5 previous fiscal years and must identify General Fund appropriations and other resources, amounts assessed and collected from the assessments required under this section and former section 685-E and amounts assessed and collected from other fees and penalties assessed under this chapter. The joint standing committees of the Legislature having jurisdiction over conservation matters and

 

 

taxation matters shall jointly review the distribution of funding and other assessments among the General Fund, unorganized territories and towns and plantations under the commission's jurisdiction and may submit legislation considered necessary as a result of the commission's report to the First Regular Session of the 124th Legislature.

 

The first table, Law/Rule Language for Amounts Assessed and Collected for LURC Services, shows the history of changes to both the Statute and LURC’s rules regarding funding assessed and collected from areas other than the General Fund. Those different areas are from the Unorganized Territories Education and Services Fund from the Unorganized Territory Tax District; Towns and Plantations provided services by LURC; and permit application fees, penalties, and sales of maps and publications. All revenue from these areas go to or are reimbursed to the General Fund and do not go directly to LURC.

 

The second table, Revenue Amounts Assessed and Collected for LURC Services, shows the specific areas and actual amounts requested by the most recent law change. In order to better clarify we have included the past five complete Fiscal Years, FY 2003-04 through FY 2007-08, along with the current Fiscal Year 2008-09 and the proposed Fiscal Year 2009-10 which is when the change becomes effective. This table also shows the actual revenue collected for LURC permit application fees, penalties, and the sale of maps and other publications.

 

 

Law/Rule Language for Amounts Assessed and Collected For LURC Services
Fiscal Year	Unorganized Territory Education and Services Fund		Towns & Plantations Service Fees	LURC Application Fees, Penalties, and Sales
1971 (Beginning of LURC)	“The Commission shall prepare a biennial budget and after approval of the budget by the Commissioner of the Department of Conservation, it shall submit to the Legislature requests for appropriations sufficient to carry out its assigned tasks.”  (The funding account was unspecified; it is assumed it was from the General Fund.)			(Fees were based upon a sliding scale depending upon the activity and on the total cost of construction for the proposal.)
FY 1983-84	“Services and activities of the commission which benefit the unorganized and deorganized areas of the State, other than plantations, shall be charged to the unorganized territory and collected through the Unorganized Territory Educational and Services Tax established in Title 36, chapter 115.”	“Beginning in FY 1983-84, services and activities of the commission which benefit plantations, towns, and cities shall be paid from the General Fund which shall be reimbursed by charges made by the commission directly to the plantation, town or city receiving the benefit; charges for fiscal years 1983-84 and 1984-85 shall be delayed until July 1, 1985. Services and activities of the commission which are available on a statewide level shall be paid from the General Fund.”  (There was also a reporting requirement. As seen below, this provision was removed and never occurred.)		(Minor changes to the minimum fee and sliding scale were made until 2003.)
FY 1985-86	“Beginning with fiscal year 1985-86, funding for the services and activities of the commission shall come from the General Fund and not be allocated to the unorganized territory under Title 36, chapter 115. It is also the intent of the Legislature that no charges may be made to plantations, towns, or cities for fiscal years 1983-84 or 1984-85.			(See above)
FY 1991-92	“Notwithstanding section 685-D, beginning with fiscal year 1991-92, funding for planning services and activities of the commission must be assessed and allocated to the unorganized territory in an amount not to exceed 10% of the total General Fund appropriation to the commission.”	(No Change)		(See above)
FY 2003-04	No Change	“Beginning with fiscal year 2003-04, a town or plantation in the commission’s jurisdiction that elects not to administer land use controls at the local level but receives commission services or a town or plantation with a portion of its land under the commission’s jurisdiction and receiving commission services, including planning, permitting, and ensuring compliance, must be assessed a fee equal to .01% of the most recent equalized state valuation established by the State Tax Assessor for that town or plantation or that portion of a town or plantation under the commission’s jurisdiction … these fees must be deposited to the General Fund.”  (This was the first time a fee was required of the Towns and Plantations.)		(Changes to fees based on the type of activity conducted, regardless of size. Examples are Building Permit $75, Development Permit (Commercial) $325.)
FY 2007-08	(No Change)	(No Change)		(Changes to a base permit fee for activities and additional amount based on size (square footage, linear distance, height) of the development. This also added after-the-fact fees.)
FY 2009-10 (recent change)	(Changed to .013% of valuation. See specifics above)	(Changed to .015% of valuation. See specifics above)		(No change)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Amounts Assessed and Collected for LURC Services (Deposited to the General Fund)
Fiscal Year	A Unorganized Territory Education and Services Fund[1]	B Towns & Plantations Service Fees[2]	C LURC Application Fees, Penalties, and Sales[3]	D All Amounts assessed and collected (A+B+C)	E LURC’s General Fund Budget[4]
2003-04	$173,664	$0	$92,064	$265,728	$1,759,482
2004-05	$187,364	$79,025	$136,865	$403,254	$1,872,639
2005-06	$357,377	$87,867	$258,424	$703,668	$1,972,729
2006-07	$348,473	$96,660	$198,242	$643,375	$1,940,821
2007-08	$381,709	$112,805	$266,802	$761,316	$2,120,604
2008-09 (Current)	$361,490	$132,535	~$325,000	$819,025	$2,078,066
2009-10 (Proposed)	$453,123	$210,382	~$325,000	$988,505	$2,176,805