Author: Municipal Finance Law Bureau
This month's Ask DLS features frequently asked questions concerning regionalization through intermunicipal agreements and assessor agreements. Please let us know if you have other areas of interest or send a question to cityandtown@dor.state.ma.us. We would like to hear from you.
What is regionalization?
Some communities choose to regionalize government functions by sharing services with surrounding cities or towns pursuant to an intermunicipal or other cooperation agreement. Areas where communities have historically combined to provide shared services include education, elder services, municipal finance, green initiatives, housing and economic development, information technology, libraries, public health, public safety, transportation and public works, and veterans’ services.
What is an intermunicipal agreement?
An intermunicipal agreement is one form of regionalization where a compact or agreement is created between two or more units of government in Massachusetts, often with one city or town assuming a lead role. G.L. c. 40, § 4A. In some cases, a contractual relationship may be formed between a city or town and a “higher” level of government (such as a Council of Governments or County). Intermunicipal agreements pursuant to G.L. c. 40, § 4A can be conceptualized in three basic categories:
• Formal Contracts,
• Joint Service Agreements, or
• Service Exchange Agreements.
In the formal contractual relationship, one city or town agrees to provide a service to one or more cities and towns for an agreed upon fee. In many cases this involves sharing personnel, such as an animal control officer or health director. Joint Service Agreements are agreements between two or more municipalities join forces to plan, finance, and deliver a service within the boundaries of all participating jurisdictions. The joint purchasing and maintenance of equipment and shared solid waste disposal districts constitute most of these types of arrangements. Service Exchange Agreements are largely made up of mutual‐aid agreements for public safety. In any case, intermunicipal agreements pursuant to G.L. c. 40, § 4A are restricted to a maximum term of 25 years.
What is an assessing agreement?
G.L. c. 41, § 30B provides for a very specialized intermunicipal agreement pertaining only to assessment and, as such, is distinct from G.L. c. 40, § 4A. These assessing agreements allow 2 or more municipalities to combine an assessing offices pursuant to an agreement that clearly defines the operation of the new assessing entity, how a municipality may withdraw from or end its participation, the cost-sharing methodology for expenses, the assessment procedures to be utilized and the filing of annual reports. Notably, the agreement also supersedes any general or special law, municipal charter, local vote, by-law or ordinance. Assessor agreements are restricted to a maximum term of 25 years and may not take effect until approved, in writing, by the Commissioner of Revenue.
G.L. c. 41, § 30B agreements may provide for:
1. Administrative Assessing Functions: Two or more municipalities may agree that:
- All administrative functions may be divided, merged or consolidated among or between two or more cities and towns;
- One municipality’s department may perform all of the assessing duties for the members;
- A new assessing department may be created to perform all assessing duties; and
- In each case, a board of assessors may perform the administrative assessing functions.
2. Board of Assessors: An agreement may vest all assessing duties in one person, in a board of assessors of one municipality, or in a regional board of assessors. An appointing authority is empowered to appoint an assessor, assistant assessors and other staff to carry out the administrative assessing functions. Where the assessing duties are vested in one person, all local boards of assessors would relinquish responsibilities and terminate in accordance with G.L. c. 41, § 2. In all cases, appointments are subject to rules and regulations established by the Commissioner of Revenue, pursuant to G.L. c. 58, § 1.
3. Financing of Joint or Cooperative Venture: While the statute allows members to decide on sharing of administrative duties and assessing functions, finance-related decisions and procedures must conform to state laws and regulations. The members may allocate costs in these ways:
- One member provides assessing services to other members through a purchase-of service contract where each party makes payments throughout the fiscal year on delivery of services,
- One of the members may serve as the “host” community, where the member bears all costs, then is reimbursed by the other members, in accordance with the agreement, or
- Members establish a regional district to provide assessing services to members, each of which are assessed for the services, in accordance with the agreement.
For further information on G.L. c. 41, § 30B agreements please see DLS IGR-2022-11.
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Editor: Dan Bertrand
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| Date published: | June 1, 2023 |
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