Legal Definitions - local action

Local Concern refers to an activity undertaken by a local government (like a city or county) when it acts in a business-like or commercial capacity, rather than performing its essential governmental duties.

When a municipality operates in a "proprietary capacity," it is engaging in functions that could potentially be performed by a private company or individual, often with the goal of generating revenue or providing a service for a fee. This is distinct from its "governmental capacity," where it exercises powers unique to government, such as policing, zoning, or public health regulation.

Here are some examples to illustrate this concept:

• Municipal Water Utility: A city owns and operates its entire water treatment and distribution system, charging residents and businesses monthly fees for water consumption.

  • Explanation: This is a local concern because the city is providing a utility service for a fee, much like a private water company would. It's a commercial operation aimed at providing a necessary service while also generating revenue to cover costs, rather than a core governmental function like maintaining public order.

• City-Owned Convention Center: A city government owns and manages a large convention center, which it rents out to various organizations for conferences, trade shows, and other events throughout the year.

  • Explanation: In this scenario, the city is acting in a proprietary capacity by operating a commercial venue and generating income through rental fees. This activity is similar to how a private business might manage an event space, making it a local concern rather than a purely governmental function.

• Public Parking Garages: A municipality constructs and operates several multi-story parking garages in its downtown area, charging hourly or daily rates for parking spaces.

  • Explanation: The operation of paid parking facilities is considered a local concern because the city is providing a service (parking) for a fee, competing with private parking lots and garages. This revenue-generating activity falls under the municipality's proprietary functions, as it's not an inherently governmental power.