What are the Characteristics of a Municipality?

Among scholars of municipal government there is wide agreement that, in the United States, a municipality must possess the following essential characteristics:

1. The municipality and its law‐making authority are authorized to exist by the state. The governing relationship between state and municipal government in America has a complex and convoluted legal history. Prior to about 1850, American municipalities enjoyed substantial autonomy and were generally free to exercise wide governing discretion with little interference from their respective state governments. After 1850, the balance of governing power began to shift substantially toward state government culminating, by the turn of the century in wide
judicial acceptance of “Dillon’s Rule” that local government is entirely the creature of the parent state and has no governing authority that has not been specifically or impliedly delegated by the state. Even before Montana became a state, “Dillon’s Rule” limited the governing powers of the Territory’s few counties and scattered municipalities. As early as 1887 the Supreme Court of the Montana Territory held that municipal corporations had no inherent right of local self-government. This holding was an entirely consistent application of the doctrine of the limited powers of a municipal government first set forth in 1872 by Iowa Judge
John F. Dillon. In short, Montana is a “Dillon’s Rule” state and, as such, all of Montana’s municipalities exist as a matter of state law and derive their governing and law‐making authority either from the state constitution or from the laws adopted by the state legislature. Even those cities which have, since adoption of the 1972 constitution, gained voter approved “self-government powers” may not exercise any power prohibited by law or any power
that requires delegation by Montana State Legislature. (See Section 1.4 for a comprehensive discussion of self-government powers.) In short, in Montana, a municipality is authorized to exist by the State of Montana and derives its governing powers from the State of Montana.
Finally, it is important to remember that, for a wide variety of purposes, state law also defines a municipality simply as a “political subdivision” of the State of Montana, which means that, for some important purposes, local officials may be considered state officials or employees of the state. For example, the Code of Ethics (see 2-2-101, MCA) prohibiting conflict of interest between public duty and the private interests of public officials also applies to all local government officials and employees.

2. The municipal entity has legal personality. Montana law 7‐1‐4101 and7‐1-4124, MCA assigns “legal personality” to municipalities: As a public corporation, a municipality is, in turn, authorized by law 7‐1‐4124, MCA to exercise general governing powers and, additionally, to exercise the usual powers of a corporation, such as the power to: sue and be sued; buy, sell and hold real or personal property; contract; borrow money and repay debt; and hire and discharge employees. A city or town is a body politic and corporate with the general powers of a corporation and the powers specified or necessarily implied in this title or in special laws heretofore enacted. 1. Municipal Government Defined 7

3. There is a local court that enforces local law. By law 3‐1-101 and 3-11‐101 or 3‐6‐101, MCA and 7‐4‐4101 through 4103, MCA, every Montana municipality has a city or municipal court of limited jurisdiction, which is responsible for interpreting and enforcing local ordinances adopted by the governing body of the municipality and for certain civil proceedings involving the city or town.

4. The municipality includes a defined territory. Municipal governments in Montana and elsewhere in the United States are defined in terms of having determinate boundaries (city or town limits), which define and limit who may participate in the municipality’s governing affairs and who comes within reach of its jurisdiction for most purposes. Under certain limited and statutorily defined circumstances, a municipal government may be empowered by state
law to exercise its jurisdiction beyond its own city or town limits. This so-called extraterritorial authority varies significantly according to the functions or services for which the extraterritorial authority was granted by the legislature. For example, the extraterritorial authority of a municipality to enforce health and quarantine ordinances extends (with approval of the county commission) five miles beyond city or town limits 7‐4-4306, MCA whereas the extraterritorial zoning authority of a Class I city is only three miles 76‐2‐310, MCA. Prior to any attempt to exercise jurisdiction beyond city or town limits, prudent municipal officials will seek the advice of their city attorney.

5. Annexation. Under rather stringent limitations, a municipality may also extend its jurisdiction and service delivery area beyond its existing city or town limits by annexation of contiguous property Parts 42, 43, 46 and 47, Chapter 2, Title 7 MCA. Most typically, the annexation process is initiated by a petition signed by at least one-third of the registered electors of the area proposed to be annexed. Upon receipt of a properly executed petition, the
governing body must call an election on the question in which the electors in both the municipality and in the area proposed for annexation are entitled to vote. However, if the petition includes the signatures of more than 50 percent of the registered electors owning real property in the area proposed for annexation or of the owners of 50 percent of the real property, which is often the case, the governing body may proceed with the annexation
process without the need to call an election on the question. In general, municipal services must be extended to the annexed area according to a plan agreeable to the municipal government and the annexed property owners.