AGENDA ITEM 20
April 20, 2010
Public Hearing
MEMORANDUM
April 16, 201 0
TO:
FROM:
SUBJECT:
County Council
Amanda Mihill, Legislative
Analyst~
Water Quality
Public Hearing:
Expedited Bill 11-10, Stonnwater Management
Protection Charge -Debt Service
Expedited Bill 11-10, Stonnwater Management Water Quality Protection Charge -Debt
Service, sponsored by the Council President at the request of the County Executive, was
introduced on March 23, 2010. A Transportation, Infrastructure, Energy and Environment
Committee worksession is tentatively scheduled for April 28 at 2:00 p.m.
Bill 11-10 would authorize the County to pledge the water quality protection charge as
security for certain debt obligations.
This packet contains:
Expedited Bill 11-10
Legislative Request Report
Memo from County Executive
Fiscal Impact Statement
F:\LA W\BILLS\I 011 Water Quality Protection Charge\Public Hearing Memo.Doc
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Expedited Bill No.
11-10
Concerning: Stormwater Management ­
Water Quality Protection Charge ­
Debt Service
Revised: 3-22-10
Draft No. 1
Introduced:
March 23, 2010
Expires:
September 23, 2011
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: --:..;:N=on':'-'e"-:-_:--_ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN EXPEDITED ACT
to:
(1)
authorize the County to pledge the water quality protection charge as security for
certain debt obligations; and
(2)
generally amend County laws related to stonnwater management.
By amending
Montgomery County Code
Chapter 19, Erosion, Sediment Control and Stormwater Management
Section 19-35, Water Quality Protection Charge
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill
The County Council for Montgomery County, Maryland approves the following Act:
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ExPEDITED BILL
No. 11-10
1
Sec. 1. Section 19-35 is amended as follows:
19-35. Water Quality Protection Charge.
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* *
(f)
*
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The Director must deposit funds raised by the Charge, and funds for
this purpose from any other source, into a stormwater management
fund. Funds in the stormwater management fund may be applied and
pledged to
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debt service on debt obligations to finance the
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construction and related expenses of stormwater management
facilities as approved in the Capital Improvements Program. [The]
Funds
in the
stormwater management fund
must only
be
[appropriated] used for:
(I) construction,
operation,
financing,
and
maintenance
of
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stormwater management facilities, and related expenses.,.
including debt service payments related to construction and
related expenses of stormwater management facilities;
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*
Sec. 2. Expedited Effective Date.
*
*
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date when it becomes
law.
Approved:
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Nancy Floreen, President, County Council
Date
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Approved:
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Isiah Leggett, County Executive
Date
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LEGISLATIVE REQUEST REPORT
Expedited Bill
11-10
Stormwater Management - Water Quality Protection Charge - Debt Service
DESCRIPTION:
This Bill would authorize the County to pledge the water quality
protection charge as security for certain debt obligations; and generally
amend County laws related to stormwater management.
In order to meet current fiscal challenges facing the County, the County
must increase the amount of revenue available to maintain core
Government programs and services.
To enhance the amount of revenue available to support core government
programs and services.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
Office of Management and Budget; Department of Finance
FISCAL IMPACT:
To be requested.
ECONOMIC
IMPACT:
EVALUATION:
To be requested.
Subject to the general oversight of the County Executive and the County
Council.
EXPERIENCE
ELSEWHERE:
SOURCES OF
INFORMATION:
Joseph Beach, Director of Management and Budget
Kathleen Boucher, Assistant Chief Administrative Officer
Marc Hansen, Acting County Attorney
APPLICATION
To be researched.
WITHIN
MUNICIPALITIES:
PENALTIES:
N/A.
F:\Law\BiIIs\J 011 Water Quality Protection Charge\Lrr.Ooc
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OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE, MARYLAND 20850
lsiab
COlm~v
Executive
MEMORANDUM
March 18, 2010
\
TO:
FROM:
SUBJECT:
Nancy Floreen, Council President
!Siru:
Leggett, County
EXeCUtiVe~~;;:tk:J
,
~
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FY 2011 Budget Reconciliation and Financing Act
I am attaching for Council's consideration a Budget Reconciliation and Financing
Act (BRF A) which makes changes to the County Code that are necessary to reconcile my
recommended FY 2011 operating budget with projected FY 2011 revenues. This bill will help
the County address its current fiscal challenges by increasing the amount of revenue available to
maintain and enhance core government programs and services. I am also attaching a Legislative
Request Report for the bill. A Fiscal Impact Statement will be transmitted to Council soon.
The BRFA consists of five primary components. First, it increases the energy tax
rates. Second, it temporarily redirects the portion of recordation tax revenues that are currently
reserved for County Govemment capital projects and rental assistance programs to the general
fund for general purposes. Third, it allows revenues generated by the Water Quality Protection
Charge to be used to pay debt service on bonds that fund stonnwater management infrastructure
projects. Fourth, it transfers responsibility for administering equal employment opportunity
programs from the Office of Human Resources to the Office of Human Rights. Fifth, it
authorizes the Fire and Rescue Service to impose an Emergency Medical Services (EMS)
Transport Fee.
As the Council knows, the County's energy tax is actually a tax on fuel oil,
natural gas, and electric utility providers which is passed on to all utility customers. Because the
energy tax is a broad-based tax, its impact on families is reduced by the fact that it is paid by
businesses and households, and all levels of govemment, including federal agencies located in
the County (that currently do not pay any other major County tax). Additionally, the energy tax
is a consumption tax based on energy usage.
It
is not based on the overall size of the utility bill
or the cost per unit of energy used as billed to the consumer. Therefore, the amount of the tax
can be lessened by reduced energy usage. Based on existing usage patterns for the average
homeowner, my recommended FY 2011 budget assumes an average increase in the energy tax of
approximately $2.90 per month. I have also recommended additional funding in the Health and
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Nancy Floreen, Council President
March 18,2010
Page 2
Human Services budget for the County's Energy Assistance Program to minimize the impact to
low-income households.
My recommended FYII budget contains several efforts to restructure County
Government to improve responsiveness and efficiency. One of these changes is the transfer of
the Equal Employment Opportunity program from the Office of Human Resources to the Office
of Human Rights. This shift takes advantage of existing staff resources to reduce costs and
leverage the efforts of County staff to produce better outcomes for the community. This bill
modifies the County code provisions relating to the responsibilities of the Office of Human
Resources and Office of Human Rights to reflect this change.
The EMS Transport Fee is needed to fund fire and rescue services in the County.
Without this fee, emergency response to residents will be impaired. EMS Transport Fees are
widely employed throughout the nation and by local governments throughout the Washington
region. These jurisdictions have not experienced any indication that people decline to use
emergency transports as a result of the imposition of an ambulance fee. By creating a prepaid
fund for uninsured County residents, the legislation that I am transmitting imposes a fee only on
County residents with health insurance which covers EMS Transports. This arrangement more
equitably distributes the economic burden of providing EMS transport services in the County
between residents and nonresidents. The legislation provides for a hardship waiver for
nonresidents who fall below 300 percent of federal poverty guidelines.
To provide the Council with a complete picture of the EMS Transport Fee
program created by this bill, I am attaching a copy of the proposed Executive Regulation to
implement the fee. This proposed regulation will be published in the April 2010 County Register
and submitted to Council after the 30-day public comment period ends on April 30.
Finally, I note that the BRFA is consistent with Bill 31-09, Consideration of
Bills - One Subject (enacted on September 29,2009), which requires that a bill "contain only
one subject matter".' As noted in the Council staff packet for Bi1l31-09, that bill was intended to
adopt the "one subject rule" of the Maryland Constitution, which requires all laws enacted by the
General Assembly to contain only one subject. The Maryland Attorney General has repeatedly
concluded that budget reconciliation and financing bills do not conflict with the one subject rule.
For example, in 2005, the Attorney General noted that "[f]or the past fourteen years, 15 budget
reconciliation, budget reconciliation and financing acts or variations thereof, have been used to
balance budgets, raise revenue, make fund transfers, redistribute funds, cut mandated
appropriations and authorize or mandate appropriations."l The Attorney General concluded that
all of those bills were consistent with the one subject rule because the provisions of the bills were
"clearly germane to the single subject of financing State and local government".
See Panitz
v.
Comptroller ofthe Treasury,
247 Md. 501 (1967) (Omnibus supplemental appropriation bill
comprised a single subject for purposes of
§
29 of
Art
III ofthe State Constitution even though
I
See May 19, 2005 memorandum from Attorney General 1. Joseph Curran, Jr. to Governor Robert Ehrlich regarding
House Bill 147 (2005).
®
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Nancy Floreen, Council President
March 18,2010
Page 3
the bill combined such diverse elements as police aid to local government; teacher salaries and
pensions; and general unrestricted grants to local government).
Attachments (3)
cc:
Joseph Adler, Director, Office of Human Resources
Jennifer Barrett, Director, Finance Department
Joseph Beach, Director, OMB
Kathleen Boucher, ACAO
Richard Bowers, Fire Chief, MCFRS
Marc Hansen, Acting County Attorney
Robert Hoyt, Director, DEP
Richard
Y.
Nelson, Jr., Director, DHCA
James Stowe, Director, Office of Human Rights
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OFFICE OF MANAGEMENT AND BUDGET
Isiah Leggett
County Executive
Joseph F. Beach
Director
MEMORANDUM
April
12, 2010
TO:
FROM:
SUBJECT:
Council
Joseph F. Beach,
Dh:ck:t8~mt:tl1ce
of Management and Budget
Expedited Bill
11-1
Debt Service
tormwater Management - Water Quality Protection Charge ­
The purpose ofthis memorandum is to transmit a fiscal and economic impact statement
to
the Councn on the subject legislation.
LEGISLATION SUMMARY
Bill
11-10
would authorize the County
to
pledge the water quality protection charge to
pay debt service on debt obligations to ffiance the construction and related expenses ofstormwater
management facilities approved in the County's Capital Improvement Plan.
FISCAL
AND ECONOMIC
SUMMARY
The County is required to comply with the National Pollutant Discharge Elimination
System (NPDES) Municipal Separate Storm Sewer System (MS-4) permit issued
by
the Maryland
Department of the Environment. A new permit, with expanded requirements,
was
issued in February,
2010.
The Water Quality Protection Charge (WQPC) is the appropriate funding source for County
programs and projects needed to comply with the MS-4 permit, including related capital construction.
To the extent that debt is
used
to finance the cost ofMS-4 compliance, the interest cost
would
be
a fiscal impact of Bill
11-1O.
The cost of issuing, marketing, and servicing the bonds will
be
capitalized in keeping with standard County practices.
Bill
11-10
will authorize the County to issue bonds secured
by
the WQPC to finance the
construction of stonnwater management facilities, thereby moderating the economic impact on taxpayers
by
spreading the capital costs of MS-4 compliance over!pe lifetime of the bonds. Without Bill
11-1
0,
capital costs for complying with MS-4 would
be
paid
:from
WQPC current revenue (cash), resulting in a
significantly higher WQPC rate per equivalent residential unit (ERU) to generate the resources needed
to
meet MS-4 requirements.
Estimated WQPC per ERU
FYll
FY12
With MS-4 Capital Construction Funded Using Bonds
$49.00
$60.00
With MS-4 Capital Construction Funded from WQPC Current Revenue
$78.50
$90.00
Consequently, Bill 11-10 will moderate the economic impact ofMS-4 compliance on County taxpayers.
Office of the Director
101 Monroe Street, 14th
Floor •
Rockvi1le,~M-ar-yl-an-d-2-0-8-50-'-24-0.-7-77-.-28-0-0--------6)
www.montgomerycountymd.gov
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Nancy
Floree~
President. County Council
April 12, 2010
Page 2
The following contributed to and concurred with this analysis: John Greiner, Office of
Management and Budget; Glenn Wyman, Department ofFinance; Bob HoYt. Department of
Environmental Protection; Gladys Balderrama., Department ofEnvironmental Protection.
JFB:jg
c: Kathleen Boucher, Assistant Chief Administrative Officer
Dee Gonzalez, Offices of the County Executive
Bob HoYt. Director, Department ofEnvironmental Protection
Steve Shofar, Department ofEnvironmental Protection
Gladys Balderrama, Department ofEnvironmental Protection
Jennifer Barrett, Director, Department ofFinance
Glenn Wyman, Department ofFinance
John Greiner, Office ofManagement and Budget
John Cuff, Office ofManagement and Budget