- What is Home Rule?
Home rule is a complex process that transfers the basic authority to act in municipal affairs from state law to a locally drafted and adopted charter.
- Who makes the ultimate decision on Home Rule?
Lancaster City voters.
- Why would a municipality seek Home Rule?
Home rule is a good government initiative that allows for flexibility in defining the structure, powers and functions of the local government so that it can best meet the needs of the local community. The locally drafted Home Rule Charter serves as the municipality’s “constitution.”
- Who is the Home Rule Study Commission?
Nine city residents were elected to the temporary body by fellow city residents in spring 2023. The commission’s charge is to review the current structure of city government and consider whether home rule would better meet the needs of Lancaster city residents. Commissioners are independent and non-partisan.
- What work has the Home Rule Study Commission completed?
The Home Rule Study Commission studied the City of Lancaster and other forms of municipal government for nine months and voted in January to draft a proposed Home Rule Charter.
- Why did the Home Rule Study Commission vote to draft a charter?
Commissioners cited different reasons including improving public participation, strengthening financial procedures, considering a code of conduct, and choosing local control over state control.
- How will a Home Rule Charter accomplish those goals?
A charter may contain requirements like a citizen referendum procedure, changes to budget procedures, requirements for an ethics board to oversee officials and similar initiatives that go beyond what is mandated by the state.
- What is in a Home Rule Charter?
A charter is made up of six basic components: a general grant of powers to the municipality, the basic organization of the government, specifics for critical legislation and administrative procedures, provisions for citizen participation and reservation of specific powers to voters, mandates for desirable administrative practices, and general provisions such as transition procedures and the effective date.
- Are there limits on a Home Rule Charter?
Yes. There are various constraints on a home rule charter including the U.S. Constitution, the state constitution, and certain state and federal laws.
- How many Home Rule Charter municipalities are in Pennsylvania?
There are 82 Home Rule Charter cities, boroughs and townships including 26 third-class cities like Lancaster. - Who is paying for the Home Rule process?
The state is providing grant funds, and the city is providing in-kind assistance.
- Will Home Rule raise my taxes?
A Home Rule Charter does not set tax rates; it provides local flexibility on the mix of taxes appropriate to the local tax base. Tax rates are set annually by the local elected officials as part of the city budget process. - Will Home Rule give the city the ability to tax whatever it wants?
No. The city cannot create new taxes. The main State authorized municipal taxes are property tax, earned income tax, local services tax and realty transfer tax. There is no authorization for the city to, for example, levy a drink tax, sales tax or commuter wage tax.
- Will Home Rule give the city the ability to tax residents as high as it wants?
A charter may contain limits on annual revenue growth from tax increases.
- Will the Home Rule charter address expenditure increases?
No. Expenditure increases are caused by a multitude of factors not controlled by the charter such as inflation, union contracts, community service needs, etc. Expenditures are addressed in the annual budget by elected officials.
- Will Home Rule address the fact that approximately one-third of city property is tax exempt?
No. Laws governing tax exempt properties remain in effect.
- What did the Home Rule Study Commission learn about Lancaster and peer communities?
The commission learned that successive Lancaster city administrations have undergone many initiatives to keep costs under control. The commission also learned that it is difficult to compare costs among peer cities because populations and service levels differ so greatly.
- Why is the City of Lancaster interested in revenue flexibility that is provided by Home Rule?
The laws that govern municipal taxes were set by the State decades ago. These mixes of taxes are capped or at a flat rate and have not kept up with inflation.
The Sorace Administration is recommending Home Rule as a solution to help build a stronger, more equitable Lancaster. By adopting Home Rule, Lancaster could have more tools to control expenses and provide for other ways to raise revenues besides property taxes.
- What is the result of inflexible taxes under the state municipal codes and laws?
Most densely populated urban areas like cities are over reliant on property taxes, which are also heavily used by school districts and counties. Home Rule provides more flexibility when determining the mix and balance of revenue sources considering the city’s tax base.
- How does revenue flexibility work?
More flexibility would allow the city to consider increases to other revenue sources to ensure balance and not overburden any one group. For example, the earned income tax is not paid by those retired or not earning wages. For these same people, increases in property taxes trigger concerns about losing their house over ever rising property taxes. Businesses that usually have the most valuable taxable property also do not pay earned income tax. Renters directly pay their earned income tax instead of paying property taxes indirectly through rent increases. Higher costs from increased property taxes affect housing affordability. - What is the connection between flexibility and public services?
Lancaster is a full-service community. Police and fire provide 24/7 services for approximately 60,000 residents and 30,000 commuters in 7.3 square miles. Public safety accounts for approximately 60 percent of the General Fund budget. More flexible revenue options are needed to keep up with inflation and maintain public safety services to ensure public health, safety and welfare. - How can the public get involved?
Read the educational materials on the commission’s Home Rule page on the city’s web site and ask questions in the Feedback section. Meeting agendas, minutes, and other materials are also posted. Watch or attend a commission or committee meeting. Meetings provide two opportunities for public comment.
- What are the Home Rule Study Commission’s next steps?
The commission is drafting the proposed charter that will be on the Nov. 5 General Election ballot. The commission is hosting three information sessions – July 29, July 31 and Aug 6 – presenting the draft and seeking public input. On August 8 a Public Hearing will be held. The deadline to complete the Charter is the end of August. The Commission must vote by the end of August to get the question on the November ballot. Assuming the Charter is on the ballot for November, in September and October a series of presentations will be held to ensure the public knows what they are voting on.
- When will the draft be ready for public review and comment?
A draft is anticipated to be completed in early August. As of the end of July many aspects of the Charter are drafted and currently available on the Home Rule webpage in the Meeting Materials section. The public can comment at Home Rule Study Commission meetings or offer feedback on the Home Rule webpage.Three information sessions at the end of July and Early August offer a review of what is in the draft. A Public Hearing on August 8 allows for the public to comment in person, comments will be accepted and review through the end of August when the Commission must vote to put it on the November ballot.