goal:: your local government should do more for less #### Civic Efficiency Engine - **Direct Democracy**: Residents shape and improve on public projects and decisions through referendums and [[consensus process - governance - village living|consensus process]] . This increases civic engagement and ensures decisions reflect the will of the people. - **Stretch Every Tax Dollar**: align local funding with state incentives to multiply impact without increasing burden - **Circulate Local Wealth (Internalize Services)**: for local projects keep the money in the community by: - rent equipment local owners - source materials from local suppliers - hire/train local labor pay fairly based (pay taxes through working on projects you're passionate about) - lower administrative overhead, allow modest profits to local owners, no leakage - **Complete Transparency**: Every transaction is public and trackable in real time. - tax payments - state revenue sharing - payouts for: labor, rentals, purchases - Task logs and quality assessments for all assigned labor #### Community-Owned, Non-Taxable Resource Loop - definitions - internal money: ... - community member: anyone who has ever been paid in `internal money` - non-commercial: vendors who don't accept `dollars` - community-owned: vendor entirely owned by `community members` - community commons: legal entity that is `community-owned` + `non-commercial` - Creates market matching work and labor - facilitates exchange of `community commons` goods/services for `internal money` - transfers `internal money` to `community members` upon task completion - keeping transaction records of everything - External vendors: people who have never earned and can't use `internal money` and are only paid in `dollars` - **no sales tax**: on purchases of `community commons` goods/service with `internal money` - **no income tax**: on `internal money` payments for work on behalf of the `community commons` - **Market Link**: any activity that creates an explicit exchange rate between `internal money` and `dollars` - cannot sell `internal money` for dollars - cannot pay external contractor in `internal money` - cannot pays non-member in `internal money` - professional limitations: - a self-employed, freelance, or a sole proprietor worker can _not_ be paid for the same skills by `community commons` in `internal money` and clients in `dollars` - can be paid for adjacent work like project facilitation, teaching, or documenting - wait a full tax year if switching from external to internal contract work - a W-2 employee, is _not in business_, and can perform professional skill for community commons earning `internal money` - `external vendor` may use community member labor for a job, but must pay them in `dollars` - **Single Currency per Task for Community Members**: the `community commons` will only pay for a tasks in either `internal money` or `dollars`, but _never_ both - the `community commons` will set how `community members` get paid for specific tasks in `dollars` or `internal money` - may still hire `external vendors` in `dollars` for tasks `community members` in `internal money` - Once a task is fulfilled by `internal money`, it may no longer be offered in exchange for cash to community members - When ready, a community can fully transition a task from `dollar`-paid to `internal money`-paid - Cannot peg `internal money` rate to former dollar rate - Task Granularity Framework (category: plumbing) - Internal Task: "Fix kitchen sink" paid in `internal money` - External Task: "Install main water line" paid in `dollars` to `external vendor` or `community member` - Transition Plan: When community has trained capacity for “Install main water line,” that task can be switched to `internal money` only for internal workers - **Bartering vs. Community Services**: `internal money` can only be exchanged at community-owned commons - exchange of goods/services between individuals (bartering) is _taxable_ - paying your neighbor directly in `internal money` for a haircut - exchange of goods/services through `community commons` is _not taxable_ - scheduling a haircut in the `community commons` system. You pay `internal money` and it's transferred to your neighbor - **Civic Vs. Commercial Labor Distinction**: individuals working for `internal money` is considered civic contribution because: - There is no market pricing - There is no profit motive - There is no cash option - It exists inside a closed economy - **Economic Firewall**: - If this firewall gets broken, the IRS might view the whole internal economy as a barter network and tax free status is lost - Single Currency per Task for Community Members - all `internal money` goes through `community commons` _no_ peer-to-peer - May not accept `dollars` for tasks from other `community members`??? - What a member can do with `internal money` - by any good/service offered through `community commons`: housing, food, childcare, utilities, consumer services - Pay for another's goods/services through `community commons` - individuals can gift `community commons` gifts/services to non community members - What a member can not do with `internal money` - transfer `internal money` to an individual - market for labor tasks are paid out `internal money` based on supply/demand of labor for that task - market for `community commons` goods/services price adjusted automatically by supply/demand on `__` interval. Prices can be adjusted immediately upon vote. - **Contracting Community Labor (External-Facing Co-Op Model)**: - The `community commons` can offer services outside the community and get paid in `dollars` - Contracts must be signed by and payment made to the `community commons`, _not_ `community members` - `Community members` performing these tasks (civic contribution) will be paid in `dollars` and taxed #### Municipality Structures | Feature/Power | General Law Township | Charter Township | Village | City | | ------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | Max Operating Millage | ~1 mill (allocated) | Up to 5 mills without vote; up to 10 with voter approval | Up to 20 mills (set by charter) | Up to 20 mills | | Services Without State Approval | Fire protection, cemetery operation, basic parks, limited road maintenance, basic zoning, limited public safety, basic water/sewer, solid waste collection | Everything GLT can do plus: enhanced police/fire, stronger planning/zoning, expanded parks, water/sewer systems, solid waste disposal, economic development, library services, senior programs | Everything CT can do plus: village-specific ordinances, downtown development, street lighting, sidewalks, village-controlled streets, expanded recreation, municipal parking, beautification programs | Everything Village can do plus: municipal utilities (water, electric, internet), mass transit, airports, income tax collection, major economic projects, full police/fire departments, housing programs, courts, hospitals, entertainment venues | | Direct Democracy Options | Limited to state-authorized referendums only (zoning changes, bond issues); no charter-based referendum powers; recall elections require 25% of votes cast for governor | Same as General Law Township | Can include referendum/initiative provisions in charter; can establish binding citizen participation processes | Most flexible; can design extensive referendum/initiative/recall processes in charter; can create neighborhood councils with binding authority | | Property Ownership | Can own property ONLY for direct governmental purposes (township hall, fire stations, parks); CANNOT develop commercial property | Can own property for governmental purposes and future public use; limited participation in economic development; CANNOT engage in speculative development | Can own property for municipal purposes; can develop downtown properties; can own revenue-producing properties related to municipal purpose; limited mixed-use development | Can own ANY property for ANY public purpose; can develop land commercially; can operate revenue-generating businesses; can create land banks and development corporations | | Enterprise Activities | Can charge fees for direct services (permits); CANNOT create/own commercial enterprises; needs separate entity for commercial assets | Can operate limited enterprise funds (water, sewer); can charge user fees; CANNOT directly own commercial platforms; needs separate authority | Can operate enterprise funds; can own limited commercial activities related to municipal purpose; can create software for internal use with potential for licensing | Can operate full enterprise funds; can own business-like entities; CAN develop/own commercial platforms if properly structured; can form municipal corporations | | Contracting Authority | Basic authority; formal process for most contracts; limited ability for micro-contracts; needs formal approval for each contract | Expanded authority; can implement some task-based systems with board approval; potential for pre-approved categories; significant administrative overhead | Flexible authority; can create formal programs for task-based work; can pre-approve work categories and rates; some procurement restrictions | Most flexible; can create comprehensive task systems; can develop platform-based contract systems; can implement pre-approved rate structures; best for granular task system | | Procurement Law Thresholds | Under $5-10K: No formal bidding; $10-20K: 3+ quotes; Over $20K: Formal bidding | Same as General Law Township | Same thresholds but can create special programs for recurring small projects | Same thresholds but most flexibility to design alternative procurement systems | | Economic Development Tools | Very limited; cannot establish DDAs, TIFAs, or BRAs; cannot provide direct incentives | Limited access to some tools like DDAs; cannot establish all authorities | Can establish DDAs, BRAs; can participate in some economic incentive programs | Full access to all development tools: DDAs, TIFAs, BRAs, NEZs, CRAs, SmartZones, Renaissance Zones | | Revenue Diversity | Property tax, fees, state revenue sharing | Property tax, fees, state revenue sharing, limited special assessments | Property tax, fees, revenue sharing, special assessments, limited business operations | Most diverse: property tax, income tax (optional), utility revenues, parking, entertainment, extensive special assessments, business operations | | Worker Classification Options | Limited flexibility; formal employment relationships; difficult to establish contractor pools | Some flexibility for contractor relationships; can establish limited on-call contractor pools | Moderate flexibility; can establish task-based contractor systems with proper structure | Most flexibility; can design comprehensive contractor systems; can establish labor marketplaces with proper legal structure | | Transparency Requirements | Basic FOIA and Open Meetings Act compliance; limited online disclosure | Same as GLT with slightly expanded requirements | Charter-defined transparency requirements; can establish enhanced disclosure systems | Can establish most comprehensive transparency systems; can mandate real-time financial disclosure in charter |