PART A

Part A provides for establishment of municipal service districts. This Part induces municipalities to cooperate in the efficient and effective exercise of municipal obligations and home-rule authority pursuant to the Maine Revised Statutes, Title 30-A, Part 2 through voluntary creation of municipal service districts. Pursuant to its charter and using home-rule authority delegated by the municipalities that form it, a municipal service district will assume its participating municipalities' powers and duties regarding public education, taxation and budgeting, land use and other matters. A majority of the voters in each of the participating municipalities must approve formation of a municipal service district.

PART B

Part B of this resolution provides financial incentives for municipalities to establish municipal service districts to achieve resulting cost savings and tax burden reductions for their citizens.

It establishes a bonus in general purpose aid for local schools for municipal service districts. When municipalities form a municipal service district, the district is entitled to an annual 10% bonus in general purpose aid for local schools, calculated as 10% of that to which each of its participating municipalities is entitled. This incentive will be available to a municipal service district for 5 years, beginning in the year following the year in which the district is formed.

It provides that the State will annually reimburse municipal service districts for their participating municipalities' share of county taxes supporting district attorneys' services, court rents and services, jails and registries of probate and deeds. This incentive will be available to a municipal service district beginning in the year following the year in which the district is formed.

It establishes the Municipal Service District Fund. A dedicated, special revenue account, this fund will be capitalized