AGENDA ITEM 15
November 30, 2010
Action
MEMORANDUM
TO:
FROM:
County Council
,,\.!fMichael Faden, Senior Legislative Attorney
/{l~1~arlene
Michaelson, Senior Legislative Analyst
&t>
Glenn Orlin, Deputy Council Staff Director
SUBJECT:
Action:
Bill 50-10, Special Taxing District
White Flint - Creation
Management and Fiscal Policy CommitteelTransportation, Infrastructure, Energy, and
Environment Committee recommendation: enact with amendments.
Bill 50-10, introduced on October 5,2010, by the Council President at the request of the County
Executive, would establish a White Flint Special Taxing District. The Bill would also authorize the levy
of an additional ad valorem property tax to fund transportation infrastructure improvements that are
specified in an implementing resolution and authorize the issuance of a certain type of bond to finance
those transportation infrastructure improvements. The Management and Fiscal Policy and Planning,
Housing and Economic Development Committees held joint worksessions on this Bill on October 28
and November 16, and the Council held a worksession on it on November 23.
The only substantive amendments to the Bill as proposed by the Executive are:
• 4 specific apartment buildings, listed by address, are not included in the special taxing district
(see ©5, lines 84-85, 91);
• paying the special taxing district tax does not entitle anyone to claim a credit against any
other County tax, including the transportation impact tax (see ©6, lines 112-116); and
• the Council must adopt a financing plan, with certain questions answered, before the special
taxing district can be required to repay funds advanced by the County (see ©7, lines 139­
152).
This packet contains
Bill 50-10 with Committee and Council amendments
F:ILAWIBfLLSII050 White Flint - CreationlAction Memo Bill.Doc
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Bill No.
50-10
Concerning: Special Taxing District ­
White Flint - Creation
Revised: 11-29-10
Draft No. 4.1
Introduced:
October 5,2010
Expires:
April 5, 2012
Enacted: _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ __
Sunset Date:
~No=n=e,--
____- - - -
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN
ACT
to:
(1)
establish a White Flint Special Taxing District;
(2)
(3)
(4)
(5)
authorize the levy of an
ad valorem
property tax to fund certain
transportation infrastructure improvements;
authorize the issuance of a certain type of bond to finance certain
transportation infrastructure improvements;
generally authorize a White Flint Special Taxing District; and
generally amend or supplement the laws governing the use of
infrastructure financing districts and similar funding mechanisms.
By adding
Montgomery County Code
Chapter 68C, White Flint Special Taxing District
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedjrom existing law by original bill.
Added by amendment.
Deletedjrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council/or Montgomery County, Maryland approves the/ollowing Act.'
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BILL
No. 50-10
Sec
1.
Chapter 68C is added as follows:
2
3
Chapter 68C. White Flint Special Taxing District.
68C-l.
Definitions.
4
F or purposes of this Chapter, the following terms have the meanings indicated:
5
6
Bond
means
~
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.
7
8
Cost
means the cost of:
9
10
ill
the
construction,
reconstruction,
and
renovation
of any
the
transportation
infrastructure
improvement,
including
11
12
13
acquisition of any land, structure, real or personal property,
.r.ighb
right-of-way, franchise, or easement, to provide
infrastructure improvement for the District;
~
transportation
14
15
16
ill
ill
all machinery and equipment needed to expand or enhance
transportation infrastructure improvement for the District;
financing charges and debt service related to
~
~
transportation
17
18
19
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
20
21
ill
ill!Y1
and replenishment of
~
debt service reserve funds for any bond that finances
transportation infrastructure improvement for the District;
(±}
22
23
reserves for principal and interest, the cost of bond insurance, and
any other
~
24
25
26
of financial guarantee, including any credit or
~
liquidity enhancement, related to
improvement for the District;
transportation infrastructure
&
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BILL
No. 50-10
27
ill
architectural, engineering, financial, and legal services related to
providing
District;
~
28
29
30
31
32
transportation infrastructure improvement for the
®
any plan, specification, study, survey, or estimate of costs and
revenues related to providing
improvement for the District;
~
transportation infrastructure
33
34
35
36
m
LID
any administrative expense incurred
Qy
the County necessary or
incident to determining whether to finance or implement a
transportation infrastructure improvement for the District; and
any other expense incurred
Qy
the County necessary or incident
to building, acquiring, or financing
improvement for the District.
~
37
38
39
40
transportation infrastructure
District
means the White Flint Special Taxing District created under
Section 68C-2.
Transportation infrastructure improvement
means:
41
42
43
44
ill
the construction, rehabilitation, or reconstruction of
~
road, street,
or highway that serves the District, including any:
(A)
.@)
right-of-way;
roadway surface;
roadway sub grade or shoulder;
median divider;
drainage facility or structure, including any related
stormwater management facility or structure;
45
46
(!;J
47
48
ill)
ill)
49
50
51
52
53
ill
(G)
(H)
roadway cut or fill;
guardrail;
bridge;
highway grade separation structure;
ill
o
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BILL No.
50-10
54
55
56
57
58
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60
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62
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65
66
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68
69
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ill
(K)
tunnel;
overpass, underpass, or interchange;
entrance plaza, approach, or other structure that is an
integral part of
~
street, road, or highway;
aJ
(M)
ili}
bicycle or walking path;
designated bus lane;
sidewalk or pedestrian plaza;
streetscaping and related infrastructure; including placing
utilities underground; and
(Q)
®
(Q)
other property acquired to construct, operate, or use
~
road,
street, or highway; and
ill
~
transit facility that serves the needs of the District, including
any:
®
track;
right-of-way;
bridge;
tunnel;
subway;
rolling stock;
station or terminal;
parking area;
related equipment, fixture, building, structure, or other real
or personal property; and
.cru
{Q
(D)
.em
(E)
73
74
75
76
77
78
79
80
(G)
(H)
ill
ill
service intended for use in connection with the operation
of
~
transit facility, including rail, bus, motor vehicle, or
other mode of transportation.
68C-2.
Creation; Boundaries.
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BILL
No. 50-10
81
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.cru
{hl
The White Flint Special Taxing District is coterminous with the
approved and adopted White Flint Sector Plan area.
The following properties, identified
Qy
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 Wood glen Drive, 11205 Woodglen Drive, 11207
Woodglen Drive, 11209 Woodglen Drive, 11333 Woodglen Drive.
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.
84
85
86
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99
68C-3.
~
of Tax; Limits.
.cru
Each
tax
year the County Council may
1m
against
~
all the assessable
real and personal property in the District
sum on each $100 of
100
assessable property that does not exceed an amount sufficient to cover
the costs of transportation infrastructure improvements that have been
identified in
!!
Council resolution approved under Section 68C-4.
{hl
101
102
103
104
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
ill2P1Y
to revenue from
~
tax imposed
under this Chapter.
105
106
®
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No. 50-10
107
108
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112
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W
@
The tax imposed under this Chapter must be levied and collected as
other County property taxes are levied and collected.
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.
~
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.
After holding
~
fill
public hearing, the Council may approve
~
resolution
that lists each transportation infrastructure improvement that would be
entirely or partly paid for
ill::
~
tax imposed under Section 68C-3.
®
W
@
The resolution must indicate the estimated cost, including
~
contingency
amount, for each listed improvement.
The Council may amend the resolution after holding
~
public hearing.
The Council must present the resolution and each amended resolution to
the Executive for approval or disapproval. If the Executive disapproves
~
resolution within
lQ
days after
it
is transmitted to the Executive and
the Council readopts the resolution
ill::
~
vote of
§
Councilmembers, or if
the Executive does not act within 10 days after the resolution is
transmitted, the resolution takes effect.
W
Before the Council holds
~
public hearing under subsection
fill
or
1£1
the Executive should transmit to the Council:
g
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BILL No. 50-10
132
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135
136
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139
ill
~
list of recommended transportation infrastructure improvements
~
to be entirely or partly paid for
Qy
68C-3;
tax imposed under Section
ill
ill
the estimated cost, including
listed improvement; and
~
contingency amount, for each
an estimated tax rate for each tax to be imposed under Section
68C-3.
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 plan in a resolution under this Section. or as part of an
approved Capital Improvements Program resolution. that specifies:
140
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149
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ill
ill
(l)
each transportation infrastructure improvement for which funds
would be advanced:
the amount of funds advanced which the District must repay;
the amount of interest. if any. the District must repay;
the time period during which the District must repay the amount
due:
ill
ill
~
the number and timing of installment payments, if any; and
any other principal term of repayment.
Any financing plan adopted under this subsection is binding on the
District and the County, except as later modified in a Council resolution.
68C-S.
(ill
District Fund.
The Director of Finance must establish
~
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.
---
G
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BILL NO. 50-10
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(hl
The Director of Finance must use this fund only to
~
the cost of any
transportation infrastructure improvement related to the District.
(£l
If in any fiscal year
£!:
balance remains in the fund, the Director of
Finance may use the balance to:
161
162
163
164
ill
ill
ill
ill
~
the cost of any transportation infrastructure improvement for
the District;
create
£!:
reserve to
~
the future costs of any transportation
165
166
167
168
infrastructure improvement for the District;
~
~
bond-related obligations or retire bonds then outstanding; or
into
£!:
sinking fund required
Qy
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.
169
170
171
172
173
174
W
Before the County issues any bond payable from ad valorem taxes
levied under Section 68C-3, the Council must adopt
£!:
resolution
authorizing the issuance of bonds that meets the requirements of this
Section.
175
176
177
(hl
Each resolution under this Section must:
ill
ill
(£l
describe the
typ§
of transportation infrastructure improvements
and related costs to be financed; and
specify the maximum principal amount of bonds to be issued.
178
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181
Each resolution may specify, or authorize the Executive
Qy
executive
order to specify:
182
183
ill
ill
ill
the actual principal amount of bonds to be issued;
the actual rate or rates of interest for the bonds;
how and on what terms the bonds must be sold;
(!)-
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No. 50-10
184
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199
ill
ill
®
ill
®
(2}
how, when, and where principal
must be paid;
9L.
and interest on, the bonds
when the bonds may be executed, issued, and delivered;
the form and tenor of the bonds, and the denominations in which
the bonds may be issued;
how any or all of the bonds may be called for redemption before
their stated maturity dates;
the nature and size of any debt service reserve fund;
the pledge of other assets in and revenues from the District to
PID:
the principal of and interest on the bonds;
(lQ)
any bond insurance or any other financial guaranty or credit or
liquidity enhancement of the bonds; and
aD
any other provision consistent with law that
desirable
to
finance
any
transportation
~
IS
necessary or
infrastructure
improvement that has been identified in
approved under Section 68C-4.
@
Council resolution
200
201
ill
The County [[covenants]] must covenant to kYy ad valorem
taxes against all assessable real and personal property in the
District at
~
202
203
204
rate and amount sufficient in each year when any
bonds are outstanding to:
®
provide for the payment of the principal
9L.
interest on, and
redemption premium if any, on the bonds;
205
206
.cru
.cg
replenish any debt service reserve fund established with
respect to the bonds; and
provide for any other purpose related to the ongomg
expenses of and security for the bonds.
207
208
209
(!)-
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No. 50-10
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ill
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
121
applicable law.
W
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
interest on, and
redemption premium if any, on the bonds.
ill
The bonds issued under this Chapter:
ill
are special obligations of the County and do not constitute g
general obligation debt of the County or g pledge of the County's
full faith and credit or the County's general taxing power;
ill
ill
ill
(g)
may be sold in any manner, either at public or private sale, and on
terms as the Executive approves;
are not subject to Sections 10 and
Code; and
must be treated as securities to the same extent as bonds issued
under Section 9-1301 ofArticle 24, Maryland Code.
224
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236
11
of Article
l.L
Maryland
To the extent provided
121
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
121
the State of Maryland and any
county or municipality in Maryland.
®
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
pgy
the costs of any transportation infrastructure
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No. 50-10
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improvement funded entirely or partly
Qy
the proceeds of the bonds,
including the costs of issuing the bonds and payment of the principal
interest on, and redemption premium if any, on the bonds. In addition
to ad valorem taxes, the bonds may be secured
Qy
any other asset in or
revenue generated in the District.
ill
68C-7.
Any ad valorem tax imposed under this Chapter must not be accelerated
because of any bond default.
Expiration of district.
Any special taxing district created under this Chapter expires
Qy
operation of
law 30 days after the cost of all transportation infrastructure improvements identified
in
f!
Council resolution approved under Section 68C-4, including all outstanding
bonds and cash advances made
Qy
the County, have been paid.
Approved:
250
Nancy Floreen, President, County Council
251
Date
Approved:
252
Isiah Leggett, County Executive
253
254
Date
This is a correct copy ofCouncil action.
255
Linda M. Lauer, Clerk of the Council
Date
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