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Spencer was not designated as a Home Rule city Monday, the designations going to 16 larger municipalities.
The program was started in 2007 with four cities Charleston, Huntington, Bridgeport and Wheeling. Cities in the program are allowed more control over policies like taxation and business regulations that usually fall to the state.
About 23 municipalities across the state made application for just 16 home rule spots.
The cities have been working on applications for months, saying many projects can't become reality because of state law restraints.
One of the home rule inclusions would help cities deal with owners of rundown property, and also expands the ability to tax.
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