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:
....!-!.No~n..:.:::e:....-
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Ch.~!
Laws of Mont. Co.
2010
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN
ACT
to:
(1)
(2)
(3)
establish a White Flint Special Taxing District;
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.
(4)
(5)
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.
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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BILL
No. 50-10
1
Sec
1.
Chapter 68C is added as follows:
Chapter 68C. White Flint Special Taxing District.
68C-l.
Definitions.
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For purposes of this Chapter, the following tenus have the meanings indicated:
Bond
means
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special obligation or revenue bond, note. . or other similar
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instrument issued
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the County that will be repaid from revenue
generated
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ad valorem taxes levied under this Chapter.
Cost
means the cost of:
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the
construction,
reconstruction,
and renovation
of any
the
transportation
infrastructure
improvement,
including
acquisition of any land, structure, real or personal property,
!ighh
right-of-way, franchise, or easement, to provide
infrastructure improvement for the District;
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transportation
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all machinery and equipment needed to expand or enhance
transportation infrastructure improvement for the District;
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.
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financing charges and debt service related to
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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
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and replenishment of
debt service reserve funds for any bond that finances a
transportation infrastructure improvement for the District;
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reserves for principal and interest, the cost of bond insurance, and
any other
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of fmancial guarantee, including any credit or
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liquidity enhancement, related to
improvement for the District;
transportation infrastructure
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BILL No. 50-10
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architectural, engineering, financial, and legal services related to
providing
f!
transportation infrastructure improvement for the
District;
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(Q)
any plan, specification, study, survey, or estimate of costs and
revenues related to providing
f!
transportation infrastructure
improvement for the District;
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m
tID
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
any other expense incurred by the County necessary or incident
to building, acquiring, or financing
f!
transportation infrastructure
improvement for the District.
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District
means the White Flint Special Taxing District created under
Section 68C-2.
Transportation infrastructure improvement
means:
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the construction, rehabilitation, or reconstruction of
f!
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;
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.em
.cg
(D)
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.ffi)
ill
(G)
(H)
roadway cut or fill;
guardrail;
bridge;
highway grade separation structure;
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Bill No.
50-10
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(K)
tunnel;
overpass, underpass, or interchange;
entrance plaza, approach, or other structure that is an
integral part of
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street, road, or highway;
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(M)
bicycle or walking path;
designated bus lane;
sidewalk or pedestrian plaza;
streetscaping and related infrastructure; including placing
utilities underground; and
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(Q)
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(Q}
other property acquired to construct, operate, or use
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road,
street, or highway; and
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transit facility that serves the needs of the District, including
any:
(A)
(ID
track;
right-of-way;
bridge;
tunnel;
subway;
rolling stock;
station or teffilinal;
parking area;
related equipment, fixture, building, structure, or other real
or personal property; and
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(D)
ill}
!E)
(G)
(H)
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service intended for use in connection with the operation
of
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transit facility, including rail, bus, motor vehicle, or
other mode of transportation.
68C-2.
Creation; Boundaries.
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BILL
No. 50-10
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W
{Q)
The White Flint Special Taxing District is cotenninous with the
approved and adopted White Flint Sector Plan area.
The following properties, identified
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street address, are not included
in the District: 5411 McGrath Boulevard. 5440Marinelli 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, 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.
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68C-3.
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of Tax; Limits.
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Each tax year the County Council may
1&Yy
against all the assessable
real and personal property in the District
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sum on each $100 of
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assessable property that does not exceed an amount sufficient to cover
the costs of transportation infrastructure improvements that have been
identified in
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Council resolution approved under Section
68C-4.
{Q)
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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
mmlY
to revenue from any tax imposed
under this Chapter.
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BILL
No. 50-10
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(£!
The tax imposed under this Chapter must be levied and collected as
other County property taxes are levied and collected.
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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.
1£1
Paying the tax imposed under the Chapter does not entitle any person to
claim a credit against any other tax that the CouQt)' 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 Section52-89.
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68C-4.
Transportation Infrastructure Improvement Resolution.
After holding
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!ill
public hearing, the Council may approve
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resolution
that lists each transportation infrastructure improvement that would be
entirely or partly paid for
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tax imposed under Section 68C-3.
(Q)
The resolution must indicate the estimated cost, including
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contingency
amount, for each listed improvement.
(£!
@
The Council may amend the resolution after holding
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public hearing.
The Council must present the resolution and each amended resolution to
the Executive for approval or disapproval. If the Executive disapproves
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resolution within 10 days after
!!
is transmitted to the Executive and
IS
the Council readopts the resolution
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~
vote of
Q
Councilmembers, or if
the Executive does not act within 10 days after the resolution
transmitted, the resolution takes effect.
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Before the Council holds
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public hearing under subsection
!ill
or
!.£1
the Executive should transmit to the Council:
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No. 50-10
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ill
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list of recommended transportation infrastructure improvements
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to be entirely or partly paid for
by
68C-3;
tax imposed under Section
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the estimated cost, including
listed improvement; and
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contingency amount, for each
an estimated
tax
rate for each tax to be imposed under Section
68C-3.
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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
[[financingll repayment plan in a resolution under this Section. or as
part of an approved Capital Improvements Program resolution. that
specifies:
ill
(2)
each transportation infrastructure improyement for which funds
would be advanced:
the amount of funds advanced which the District must repay;
the [[amount]] expected rate of
inter~st.
if any. the District must
repay:
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L4l
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the time period during which the District [[must]] is expected to
repay the amount due: and
[[the number and timing of installment payments, if any; and]]
[[(Q)]]
any other principal term of repayment.
Any [[fmancingll 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.
The Director of Finance must establish
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separate fund for the proceeds
collected from any tax imposed under this Chapter. The proceeds of
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No.
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any tax imposed under this Chapter must be pledged to and paid into .
this fund.
®
!f)
The Director of Finance must use this fund only to
ImY
the cost of any
transportation infrastructure improvement related to the District.
If in any fiscal year !! balance remains in the fund, the Director of
Finance may use the balance to:
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ill
ImY
the cost of any transportation infrastructure improvement for
the District;
create!! reserve to
ImY
the future costs of any transportation
infrastructure improvement for the District;
ImY
bond-related obligations or retire bonds then outstanding; or
ImY
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.
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68C-6.
Issuing Bonds.
(ill
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.
®
Each resolution under this Section must:
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!f)
describe the
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of transportation infrastructure improvements
and related costs to be fmanced; and
specify the maximum principal amount of bonds to be issued.
Each resolution may specify, or authorize the Executive
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executive
order to specify:
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the actual principal amount of bonds to be issued;
the actual rate or rates of interest for the bonds;
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BILL No. 50-10
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how and on what tenns the bonds must be sold;
how, when, and where principal .Qh and interest on, the bonds
must be paid;
when the bonds may be executed, issued, and delivered;
the fonn and tenor of the bonds, and the denominations in which
the bonds may be issued;
m
lID
(2)
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
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the principal of and interest on the bonds;
Q.Q)
any bond insurance or any other fmancial guaranty or credit or
liquidity enhancement ofthe bonds; and
.QD
any other provision consistent with law that is necessary or
desirable
to
finance
any
transportation
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infrastructure
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improvement that has been identified in
approved under Section 68C-4.
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Council resolution
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The County [[covenants]] must covenant to
1m
ad valorem
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taxes against all assessable real and personal property in the
District at
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rate and amount sufficient in each year when any
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bonds are outstanding to:
(A)
provide for the payment ofthe principal.Qh interest on, and
redemption premium if any, on the bonds;
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lID
replenish any debt service reserve fund established with
respect to the bonds; and
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provide for any other purpose related to the ongomg
expenses of and security for the bonds.
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No. 50-10
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(g)
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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
m:
applicable law.
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
QL
interest on, and
redemption premium if any, on the bonds.
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The bonds issued under this Chapter:
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are special obligations of the County and do not constitute
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general obligation debt of the County or
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pledge of the County's
full faith and credit or the County's general taxing power;
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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
11
of Article 31, Maryland
Code; and
must be treated as securities to the same extent as bonds issued
under Section 9-1301 of Article 24, Maryland Code.
To the extent provided
m:
law, the bonds, their transfer, the interest
m:
the State of Maryland and any
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
county or municipality in Maryland.
.aD
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
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the costs of any transportation infrastructure
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BILL No. 50-10
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improvement funded entirely or partly
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the proceeds of the bonds,
including the costs of issuing the bonds and payment of the principal
ill.,.
interest on, and redemption premium if any, on the bonds. In addition
to ad valorem taxes, the bonds may be secured
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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
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operation of
law 30 days after the cost of all transportation infrastructure improvements identified
in.£ Council resolution approved under Section
68C-4,
including all outstanding
bonds and cash advances made
Qy
the County, have been paid.
Approved:
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Approved:
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This is a correct copy ofCouncil action.
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Linda M. Lauer, Clerk ofthe Council
Date
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