Bill No. 50-10
Concerning: Special Taxing District - White Flint - Creation
Revised: 11-30-10 Draft No. 5
Introduced: October 5, 2010
Enacted: November 30, 2010
Executive: December 9, 2010
Effective: March 10, 2011
Sunset Date: None
Ch. 52 , Laws of Mont. Co. 2010
For Montgomery County, Maryland
AN ACT to:
(1) establish a White Flint Special Taxing District;
(2) authorize the levy of an ad valorem property tax to fund certain transportation infrastructure improvements;
(3) authorize the issuance of a certain type of bond to finance certain transportation infrastructure improvements;
(4) generally authorize a White Flint Special Taxing District; and
(5) generally amend or supplement the laws governing the use of infrastructure financing districts and similar funding mechanisms.
Montgomery County Code
Chapter 68C, White Flint Special Taxing District
Boldface Heading or defined term. Underlining Added to existing law by original bill. [Single boldface
from existing law by original bill. Double
by amendment. [[Double boldface
from existing law or the bill by amendment. *
* * Existing law unaffected by bill.
Boldface Heading or defined term.
Underlining Added to existing law by original bill.
[Single boldface brackets] Deleted from existing law by original bill.
Double underlining Added by amendment.
[[Double boldface brackets]] Deleted from existing law or the bill by amendment.
* * * Existing law unaffected by bill.
Sec 1. Chapter 68C is added as follows:
Chapter 68C. White Flint Special Taxing District.
For purposes of this Chapter, the following terms have the meanings indicated:
Bond means a special obligation or revenue bond, note, or other similar instrument issued by the County that will be repaid from revenue generated by ad valorem taxes levied under this Chapter.
Cost means the cost of:
(1) the construction, reconstruction, and renovation of any transportation infrastructure improvement, including the acquisition of any land, structure, real or personal property, right, right-of-way, franchise, or easement, to provide a transportation infrastructure improvement for the District;
(2) all machinery and equipment needed to expand or enhance a transportation infrastructure improvement for the District;
(3) financing charges and debt service related to a transportation infrastructure improvement for the District, whether the charge or debt service is incurred before, during, or after construction of the transportation infrastructure improvement, including the cost of issuance, redemption premium (if any), and replenishment of debt service reserve funds for any bond that finances a transportation infrastructure improvement for the District;
(4) reserves for principal and interest, the cost of bond insurance, and any other type of financial guarantee, including any credit or liquidity enhancement, related to a transportation infrastructure improvement for the District;
(5) architectural, engineering, financial, and legal services related to providing a transportation infrastructure improvement for the District;
(6) any plan, specification, study, survey, or estimate of costs and revenues related to providing a transportation infrastructure improvement for the District;
(7) any administrative expense incurred by the County necessary or incident to determining whether to finance or implement a transportation infrastructure improvement for the District; and
(8) any other expense incurred by the County necessary or incident to building, acquiring, or financing a transportation infrastructure improvement for the District.
District means the White Flint Special Taxing District created under Section 68C-2.
Transportation infrastructure improvement means:
(1) the construction, rehabilitation, or reconstruction of a road, street, or highway that serves the District, including any:
(B) roadway surface;
(C) roadway subgrade or shoulder;
(D) median divider;
(E) drainage facility or structure, including any related stormwater management facility or structure;
(F) roadway cut or fill;
(I) highway grade separation structure;
(K) overpass, underpass, or interchange;
(L) entrance plaza, approach, or other structure that is an integral part of a street, road, or highway;
(M) bicycle or walking path;
(N) designated bus lane;
(O) sidewalk or pedestrian plaza;
(P) streetscaping and related infrastructure; including placing utilities underground; and
(Q) other property acquired to construct, operate, or use a road, street, or highway; and
(2) a transit facility that serves the needs of the District, including any:
(F) rolling stock;
(G) station or terminal;
(H) parking area;
(I) related equipment, fixture, building, structure, or other real or personal property; and
(J) service intended for use in connection with the operation of a transit facility, including rail, bus, motor vehicle, or other mode of transportation.
68C-2. Creation; Boundaries.
(a) The White Flint Special Taxing District is coterminous with the approved and adopted White Flint Sector Plan area.
(b) The following properties, identified by street address, are not included in the District: 5411 McGrath Boulevard, 5440 Marinelli Road, 5801 Nicholson Lane, 11700 Old Georgetown Road, 11701 Old Georgetown Road, 11750 Old Georgetown Road, 11800 Old Georgetown Road, 11801 Rockville Pike, 5800 Nicholson Lane, 5802 Nicholson Lane, 5809 Nicholson Lane, 5440 Marinelli Road, 5503 Edson Lane, 5505 Edson Lane, 5507 Edson Lane, 5509 Edson Lane, 11201 Woodglen Drive, 11203 Woodglen Drive, 11205 Woodglen Drive, 11207 Woodglen Drive, 11209 Woodglen Drive, 11351 Woodglen Drive, 11418 Rockville Pike, 11200-11219 Edson Park Place, 11222 Edson Park Place, 11224 Edson Park Place, 11226 Edson Park Place, 11228 Edson Park Place, 11230 Edson Park Place, 11232 Edson Park Place, 11234 Edson Park Place, 11236 Edson Park Place, 11238 Edson Park Place, and 11240 Edson Park Place.
68C-3. Levy of Tax; Limits.
(a) Each tax year the County Council may levy against all the assessable real and personal property in the District a sum on each $100 of assessable property that does not exceed an amount sufficient to cover the costs of transportation infrastructure improvements that have been identified in a Council resolution approved under Section 68C-4.
(b) Under Section 9-1302 of Article 24, Maryland Code, the limit in Charter Section 305 on levies of ad valorem taxes on real property to finance County budgets does not apply to revenue from any tax imposed under this Chapter.
(c) The tax imposed under this Chapter must be levied and collected as other County property taxes are levied and collected.
(d) The tax imposed under this Chapter has the same priority, bears the same interest and penalties, and in every respect must be treated the same as other County property taxes.
(e) Paying the tax imposed under the Chapter does not entitle any person to claim a credit against any other tax that the County imposes, including the development impact tax for transportation improvements imposed under Section 52-49 or the development impact tax for public school improvements imposed under Section 52-89.
68C-4. Transportation Infrastructure Improvement Resolution.
(a) After holding a public hearing, the Council may approve a resolution that lists each transportation infrastructure improvement that would be entirely or partly paid for by a tax imposed under Section 68C-3.
(b) The resolution must indicate the estimated cost, including a contingency amount, for each listed improvement.
(c) The Council may amend the resolution after holding a public hearing.
(d) The Council must present the resolution and each amended resolution to the Executive for approval or disapproval. If the Executive disapproves a resolution within 10 days after it is transmitted to the Executive and the Council readopts the resolution by a vote of 6 Councilmembers, or if the Executive does not act within 10 days after the resolution is transmitted, the resolution takes effect.
(e) Before the Council holds a public hearing under subsection (a) or (c), the Executive should transmit to the Council:
(1) a list of recommended transportation infrastructure improvements to be entirely or partly paid for by a tax imposed under Section 68C-3;
(2) the estimated cost, including a contingency amount, for each listed improvement; and
(3) an estimated tax rate for each tax to be imposed under Section 68C-3.
(f) Before the County loans or advances any funds to the District that the District is required to repay to the County, the Council must adopt a [[financing]] repayment plan in a resolution under this Section, or as part of an approved Capital Improvements Program resolution, that specifies:
(1) each transportation infrastructure improvement for which funds would be advanced;
(2) the amount of funds advanced which the District must repay;
(3) the [[amount]] expected rate of interest, if any, the District must repay;
(4) the time period during which the District [[must]] is expected to repay the amount due; and
(5) [[the number and timing of installment payments, if any; and]]
[[(6)]] any other principal term of repayment.
Any [[financing]] repayment plan adopted under this subsection is binding on the District and the County, except as later modified in a Council resolution.
68C-5. District Fund.
(a) The Director of Finance must establish a separate fund for the proceeds collected from any tax imposed under this Chapter. The proceeds of any tax imposed under this Chapter must be pledged to and paid into this fund.
(b) The Director of Finance must use this fund only to pay the cost of any transportation infrastructure improvement related to the District.
(c) If in any fiscal year a balance remains in the fund, the Director of Finance may use the balance to:
(1) pay the cost of any transportation infrastructure improvement for the District;
(2) create a reserve to pay the future costs of any transportation infrastructure improvement for the District;
(3) pay bond-related obligations or retire bonds then outstanding; or
(4) pay into a sinking fund required by the terms of bonds which finance the cost of any transportation infrastructure improvement for the District that may be incurred or accrue in later years.
68C-6. Issuing Bonds.
(a) Before the County issues any bond payable from ad valorem taxes levied under Section 68C-3, the Council must adopt a resolution authorizing the issuance of bonds that meets the requirements of this Section.
(b) Each resolution under this Section must:
(1) describe the types of transportation infrastructure improvements and related costs to be financed; and
(2) specify the maximum principal amount of bonds to be issued.
(c) Each resolution may specify, or authorize the Executive by executive order to specify:
(1) the actual principal amount of bonds to be issued;
(2) the actual rate or rates of interest for the bonds;
(3) how and on what terms the bonds must be sold;
(4) how, when, and where principal of, and interest on, the bonds must be paid;
(5) when the bonds may be executed, issued, and delivered;
(6) the form and tenor of the bonds, and the denominations in which the bonds may be issued;
(7) how any or all of the bonds may be called for redemption before their stated maturity dates;
(8) the nature and size of any debt service reserve fund;
(9) the pledge of other assets in and revenues from the District to pay the principal of and interest on the bonds;
(10) any bond insurance or any other financial guaranty or credit or liquidity enhancement of the bonds; and
(11) any other provision consistent with law that is necessary or desirable to finance any transportation infrastructure improvement that has been identified in a Council resolution approved under Section 68C-4.
(d) (1) The County [[covenants]] must covenant to levy ad valorem taxes against all assessable real and personal property in the District at a rate and amount sufficient in each year when any bonds are outstanding to:
(A) provide for the payment of the principal of, interest on, and redemption premium if any, on the bonds;
(B) replenish any debt service reserve fund established with respect to the bonds; and
(C) provide for any other purpose related to the ongoing expenses of and security for the bonds.
(2) The County further [[covenants]] must covenant, when any bond is outstanding, to enforce the collection of all ad valorem taxes under this Chapter as provided by applicable law.
(e) All proceeds received from any issuance of bonds must be applied solely towards costs of the transportation infrastructure improvements listed in the resolution adopted under Section 68C-4, including the cost of issuing bonds and payment of the principal of, interest on, and redemption premium if any, on the bonds.
(f) The bonds issued under this Chapter:
(1) are special obligations of the County and do not constitute a general obligation debt of the County or a pledge of the County’s full faith and credit or the County’s general taxing power;
(2) may be sold in any manner, either at public or private sale, and on terms as the Executive approves;
(3) are not subject to Sections 10 and 11 of Article 31, Maryland Code; and
(4) must be treated as securities to the same extent as bonds issued under Section 9-1301 of Article 24, Maryland Code.
(g) To the extent provided by law, the bonds, their transfer, the interest payable on them, and any income derived from them, including any profit realized on their sale or exchange, must be exempt at all times from every kind and nature of taxation by the State of Maryland and any county or municipality in Maryland.
(h) The bonds must be payable from the fund required under Section 68C-5 and any other asset or revenue of the District pledged toward their payment. When any bond is outstanding, the monies in the fund are pledged to pay the costs of any transportation infrastructure improvement funded entirely or partly by the proceeds of the bonds, including the costs of issuing the bonds and payment of the principal of, interest on, and redemption premium if any, on the bonds. In addition to ad valorem taxes, the bonds may be secured by any other asset in or revenue generated in the District.
(i) Any ad valorem tax imposed under this Chapter must not be accelerated because of any bond default.
68C-7. Expiration of district.
Any special taxing district created under this Chapter expires by operation of law 30 days after the cost of all transportation infrastructure improvements identified in a Council resolution approved under Section 68C-4, including all outstanding bonds and cash advances made by the County, have been paid.