AGENDA ITEM #6D
March 31, 2015
Action
MEMORANDUM
March 13,2015
TO:
FROM:
SUBJECT:
County Council
Amanda Mihill, Legislative
Attome~
Action:
Bill 2-15, Stonnwater Management - Water Quality Protection Charge
Credit and Financial Hardship Exemption Deadlines
Transportation, Infrastructure, Energy and Environment Committee recommendation
(3-0):
enact Bill 2-15 as introduced.
Bill 2-15, Stonnwater Management Water Quality Protection Charge Credit and Financial
Hardship Exemption Deadlines, sponsored by the Council President at the request of the County
Executive, was introduced on January 20. A public hearing was held on February 10 and a
Transportation, Infrastructure, Energy and Environment Committee worksession was held on
February 23.
Bill 2-15 would change the due date for submittal of both credit and financial hardship exemption
applications to September 30. The Committee recommended (3-0) Bill 2-15 be enacted.
This packet contains:
Bill 2-15
Legislative Request Report
Memo from County Executive
Fiscal and Economic Impact statement
Circle #
1
4
5
7
F:\LAw\BILLS\! 502 Stonnwater Management-WQPC\Action Memo.Docx
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Bill No.
2-15
Concerning: Stormwater Management-
Water Quality Protection Charge
Revised:
1/16/2015
Draft No, _1_
Introduced:
January
20.2015
Expires:
July
20.2016
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: -:----:-:_ _ _ _ _ _ __
Sunset Date: --'N..;:.::o=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)
(2)
change the due date for submittal of both credit and financial hardship exemption
applications; and
generally amend County law regarding the Water Quality Protection Charge.
By amending
'Montgomery County Code
Chapter 19, Erosion, Sediment Control and Storm Water Management
Section 19-35
Boldface
Underlining
[Single boldface brackets]
Doyble 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. 2-15
1
2
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8
9
10
11
Sec.
1.
Section 19-35 is amended as follows:
19-35.
Water Quality Protection Charge.
*
(e) (1)
*
*
A property owner may apply for, and the Director of
Environmental Protection must grant, a credit equal to a
percentage, set by regulation, of the Charge if:
(A) the property contains a stormwater management system
that is not maintained by the County;
(B) the owner participates in a County-approved water
quality management practice or initiative;
(C) the property treats off-site drainage from other properties
located within the same drainage area; or
(0)
the property does not contain a stormwater management
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27
system, but is located in the same drainage area as
another that contains a stormwater management system
and both properties have the same owner.
(2) To receive the credit, the property owner must apply to the
Director of Environmental Protection in a form prescribed by
the Director not later than [October 31] September 30 of the
year [before] that payment of the Charge is due. Any credit
granted under this subsection is valid for 3 years.
(3) The owner of an owner-occupied residential property, or any
non-profit organization that can demonstrate substantial
financial hardship may apply for an exemption from all or part
of the Charge for that property, based on criteria set by
regulation. The owner or organization may apply for the
exemption to the
Direct~r
of Finance not later than [April 1]
F:\LAW\BILLS\1502 Stonnwater Management-WQPC\TR
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xx -
008-~1I
WQPC - Credit And Hardship Exemption (l1-17-14).Doc
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BILL
No. 2-15
28
29
30
31
September 30 of the year [when] that payment of the Charge is
due.
*
Sec. 2. Retroactivity
*
*
32
33
34
This Act applies retroactively to applications for credit or fmancial hardship
exemption submitted on or before September 30,2014 for Levy Year 2014.
35
36
Approved:
George Leventhal, President, County Council
Date
37
Approved:
38
Isiah Leggett, County Executive
Date
39
40
This is a correct copy ofCouncil action.
Linda M. Lauer, Clerk of the Council
Date
F:\LAW\BILLS\lS02
Stormwater Management-WQPC\TR
008-15
-\,ffH& -
WQPC - Credit And
Hardship
Exemption
(1I-I7-14).Doc
t:3J
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LEGISLATIVE REQUEST REPORT
Bill
2-14
Stormwater Management Water Quality Protection Charge Credit and Financial Hardship
Exemption Deadlines
DESCRIPTION:
Bill
2-14
would change the deadlines for submittal ofapplications
for credits against the Water Quality Protection Charge (Charge) and
financial hardship exemptions from the Charge.
Current law requires property owners to apply for a credit against or
hardship exemption from the Charge before the County sends out the
annual property
tax
bill which provides notice of the Charge for that
particular
tax
levy year. The Department of Finance mails annual
and semi-annual
tax
bills in July of each year and posts these bills on
its website by July 1. The current deadline for a credit application is
October 31 of the year before a property
tax
bill is mailed out. The
deadline for a fmancial hardship exemption is April 1 ofthe year that
a property
tax
bill is mailed out.
To extend the application deadlines for a credit or fmancial hardship
exemption until three months after the annual property
tax
bills are
sent out to property owners.
Department of Environmental Protection and Department of Finance
See Fiscal Impact Statement
See Economic Impact Statement
PROBLEM:
GOALS AND
OBJECTNES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC IMPACT:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
Kathleen Boucher, Chief Operating Officer, DEP, 240-777-7786 and
Vicky Wan, Manager, Water Quality Protection Charge and
Technology, DEP, 240-777-7722
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Section 19-35, which this bill would amend, does not apply in the
municipalities of Rockville, Gaithersburg, or Takoma Park.
N/A
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BILL
OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE. MARYLAND 20850
Isiah Leggett
County Executive
MEMORANDUM
December 9,2014
RECEIVED
MONTGOMERY COUNTY
COUHCIl
TO:
FROM:
George Leventhal, President
Montgomery County Council
Isiah Leggett, County Executiv-......-r-
SUBJECT: Proposed Legislation Regarding Stonnwater Management- Water Quality
Protection Charge
I am transmitting for introduction at Council a bill that extends the application
deadlines for credits and hardship exemptions under the Water Quality Protection Charge
(Charge) program. I am also attaching a Legislative Request Report and Fiscal and Economic
Impact Statements for the bill. Because these deadlines are also included in Executive
Regulations governing the Charge program, I am also transmitting in a separate package the
proposed regulations which make conforming changes consistent with this bill.
Under current law, a property owner may apply to the Department of
Environmental Protection (DEP) to receive a credit against the Charge for treating stormwater
runoff with a stonnwater management facility that is not maintained by the County. This bill
extends the deadline for applying for a credit from October 31 of the year before a property tax
bill is mailed out to September 30 of the year that the property
tax
bill is mailed out. Under
current law, the owner of residential property that is owner-occupied or a nonprofit organization
that owns property subject to the Charge may apply to the Department of Finance (Finance) for a
hardship exemption. This bill extends the deadline for applying for a hardship exemption from
April 1 ofthe year before a property tax bill is mailed out to September 30 of the year that the
property tax bill is mailed out.
The current credit and hardship exemption deadlines were established so that DEP
and Finance could make decisions about credits and hardship exemptions prior to the applicable
fiscal year in which reduced revenues would occur so that these reduced revenues could be
accounted for in the development ofDEP's annual budget. However, experience has shown that
property owners often do not focus on credit and hardship exemption opportunities until after
they receive their property
tax
bil1s.
In
addition, DEP now believes that it can develop
montgomerycountymd.gov/311·
~
'.
""""""'\
'3
.__
~
.
240-773-3556 TTY
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George Leventhal, President
December 9, 2014
Page
2
reasonable projections for reduced revenues from credits and hardship exemptions in a particular
fiscal year even if applications are received later in the process.
Extending the application deadlines for both credits and hardship
~xemptions
until
September
30
of the year in which the property tax bill is mailed out gives property owners
additional time to prepare these appJications after receiving property tax bills. This change will
make these application deadlines consistent with the current deadline for requesting an
adjustment to the Charge based on consolidation ofcontiguous properties, property
classification, impervious area calculation or inapplicability of the Charge
to
the property. The
bill applies retroactively to applications that were submitted on or before September
30,
2014,
for Tax Levy Year 2014.
If you have any questions about this bill, please contact Fariba Kassh;, DEP Acting
Director
at
249-777-7781.
Attachments (3)
c:
Joseph Beach, Director, Finance Department
Marc Hansen, County Attorney
Jennifer Hughes, Director, Office of Management and Budget
Fariba Kassiri, Acting Director, Department of Environmental Protection
Bonnie Kirkland, Assistant Chief Administrative Officer
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ROCKVIllE, MARYLAND
MEMORANDUM
October 16,2014
TO:
Craig Rice, Preside11f, 'ounty Council
Jennifer
A.
Hugh
Joseph F.
~each,
or, Office of Management and Budget
ector,
Deparim~e
...
FROM:
SUBJECT: FEIS for BIll XX-14. Stormwater Management, Water QualIty ProtectIon
Charge
Please find attached the
fiscal
and economic impact
statement.~
for the above­
referenced legislation.
JAH:fz
cc: Bo,nnie.Kirkland, Assistant Chief Administrative Officer
Lisa Austin, Offices ofthe County Executive
Joy Nurmi, Special Assistant
to
the County Executive
Patrick Lacefield, Director, Public Information Office
Joseph F. Beach, Director, Department of Finance
Fariba Kassin. Department
ofEnvironmental Protection
David Platt, Department of Finance
Alex Espinosa, Office of Management and Budget
Matt Schaeffer, Office of Management and Budget
Felicia Zhang, Office of Management and Budget
(j)
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·Fiseallmpaet
Statement
Couucil Bill XX·14, Stermwater Mauagement - Water Quality Protection Charge
1. Legislative Summary.
This bill clarifies
theeligihiIity
criteria
for
a
property owner to
receive a Water
Quality
Protection
Charge (WQPC)
credit
and changes the due
date
(to
September
30) for submittal
of both credit
and
financial
hardship
exemption applications.
2. An estimate of changes
in
County revenues and expenditures regardless ofwllether
the revenues or expenditures are assumed mthe recommended or approved budget.
Includes source of iufonnatiou,
assumptions, and
methodologies used.
The hill would result
in
the mailing ofupdated
tax
hills after
initial
mailings. The
Department
of Finance reports
that
only a small amount of
unit
costs for mailing.
proportional to the
amount
of hills mailed, would result from the hill.
In
the next six years,
the total costs ofthese mailings to ratepayers with approved credit applications will not
exceed $200,
based
on DEP's current experience administering the credit and
hardship
exemption programs.
In FYI 4, DEP received 110 credit applications and 24 hardship exemptions. Of
th~
applications. alII 10 credit application and 19 of 24 hardship exemptions were approv('''<i.
The FY15 approved budget and the WQPC rate incorporate these estimates ofcredits and
hardship reductio.tlS.
Revenue reduction estimates for the WQPC Credit
and
Hardship Exemption program are
assumed in the current
fiscal
pJan for
the
Water Quality Protection Fund (WQPF) and
assume the following reductions in revenue:
The
WQPC
credit
program:
FY15:
$437,QOO
FY16: $656,000
FY17: $680,000
FY18: $720,000
FY19: $923,000
FY20: $963,000
The WQPC hardship program:
FY15: $39,000
FY16:
$59,000
FY17: $61,000
FY18: $65,000
FY19: $83,000
FY20: $86,000
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3. Revenue and expenditure estimates covering
at
least the next 6
f"lSeal years.
Revenue reduction
estimates
related
to
the WQPC credit and hardship programs may
fluctuate
in
future
fiscal
years depending on the number of ratepayers
that
apply
for the
credit
and
the amount ofthe WQPC. DEP has estimated the total fiscal
impact
ofeach
program below:
The
wQPe
credit program:
FY15: $437,000
FY16: $656,000
FYI7: $680,000
.FYI8:
$720,000
FY19:$923,Ooo
FY20:
$963~OOO
These
estimates are bl.,lSed on the current phase-in ofthe
wQPe
credit
program.
10%
annual increa,sein credit participation, and future WQPC
increases
assumed in the
FYlS:"20
Fiscal Plan.
Any
revenue
reduction
due to
credits
is offset
by
adjustments to the WQPC in
order to generate sufficient revenues
to
pay for required stormwater management
expenditUres.
The wQPe hardship program:
FY15: $39,000
FY16: $59,000
FYI7: $61,000
FY18: $65,000
FY19:
$83,000
FY20:
$86,000
These estimates are based on the first year ofactual program participation, adjusted with
the
current phase-in ofthe
WQPC program, and
future
WQPC increases assumed in the
FY15~20
Fiscal
Plan.
Any revenue reduction
due
to
hardship applications is offset
by
adjustments
to
the WQPC
in
order
to
generate sufficient revenues
to pay for required
stormwater
management expenditures.
4. An actuarial analysis through the entire amorti7.ation period for each regu.lation that
would affect retiree pension or group
insuran~
costs.
Not applicable.
5. Later actions that
may
affect future revenue and expenditures
if
the regulation
authorizes future spending.
Not applicable.
6. An estimate of the staff time needed
to
implement the regulation.
The additional time is not expected to be significant and can be absorbed by existing WQPC
staff.
(j)
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7.
An
explanation of how the addition of new staff responsibilities would affect other
duties.
Not Applicable.
8.
An estimate of costs when an additional appropriation
is
needed.
Additional appropriation is not needed.
9.
A
description
of any variable that could
affect
revenue and cost estimates.
Revenue reduction estimates related
to
the WQPC credit and hardship programs may
fluctuate in future fiscal years depending on the number of ratepayers that apply for the
credit and the amount of the WQPC.
10.
Ranges of revenue or expenditures that are uncertain or difficult to project.
See response for item 9.
11. If a
regulation is
likely to have no fiscal impact, why that is the case.
Not applicable.
12. Other
fiscal impacts
or comments.
Not applicable.
13. The following C()ntributed to and concurred
with this
analysis:
Vicky Wan, Department ofEnviroqtnentaJ Protection
Steve Shofar, Department of Environmental Protection
Matt Schaeffer. Office ofManagement and Budget
._~~~~f~H~~
Management and Budget
Date
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Economic Impact Statement
Bill ##-14, Stonnwater Management
Water Quality Protection Charge
Background:
This legislation would:
• clarity the eligibility criteria for a property owner to
receive
a Water
Quality
Protection Charge credit such that the property must contain a stonnwater
management
system
that
is
not maintained by the County, and
• change the due date for submittal ofboth credit
and
financial hardship exemption
applications. The cuttent deadline for credit application is October.31 ofthe year
before
the
property
tax
bill is mailed or posted on the Department ofFinance's
(Finance) website. The current deadline for a hardship exemption
is
April 1 of
the
year
that a
property
tax bill is
maiJed
or posted on the
website.
Bill ##-14
extends the application deadlines for the credit and exemption until September 30
of the year
in
which the property
tax
bill
is
mailed or posted on the
website.
1. The sources of information, assumptions, and methodologies used.
The source of information is the
Department of Environmental Protection
(DEP).
There are no assumptions or methodologies used in the preparation of
the
economic
impact statement
2. A description of any variable that could affect the economic impact estimates.
Because Bill ##-14 clarifies the criteria for obtaining a credit
and
extends the
application deadlines for
credits
and hardship exemptioos; there are no variables
that
affect
the
economic impact estimates.
3. The Bill's positive or
neg~tive
effect,
if
any on employment, spending, saving,
investment, incomes, and property values in the County.
Bm
##-14 has no economic impact because of the reasons stated
in
#2.
4.
If
a Bill
is
likely to have
DO
economic impact, why is that the case?
BiH ##-14
has
no economic impact.
5. The following contributed to or concurred with this analysis: David Platt and Rob
Hagedoom. Finance; Vicky Wan, Department ofEnvironmentaIProtectiQn.
h,
Director
.lent of Finance
Page
1
ofl
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o
Testimony on Behalf of County Executive Isiah Leggett
Bill 2-15,
Stormwater Management - Water Quality Protection Charge - Credit and
Financial Hardship Exemption Deadlines
February 10,2015
Good afternoon. My name is Lisa Feldt. I am the Director of the Department of
Environmental Protection (DEP). Thank you for the opportunity.to testify on behalf of County
Executive Leggett regarding Bil12-15, which would change the application deadlines for credits
and financial hardship exemptions under the Water Quality Protection Charge (Charge) Program.
Under current law, a property owner may apply to DEP to receive a credit against the
Charge for treating stormwater runoff with a stormwater management facility that is not
maintained by the County.
This
bill extends the deadline for applying for a credit from October
31 ofthe year before a property
tax
bill is mailed out to September 30 ofthe year that the
property
tax
bill is mailed out. Under current law, the owner ofresidential property that is
owner-occupied or a nonprofit organization that owns property subject to the Charge may apply
to the Department ofFinance (Finance) for a hardship exemption. This bill extends the deadline
for applying for a hardship exemption from April 1 ofthe year before a property tax bill is
mailed out to September 30 ofthe year that the property
tax
bill is mailed out.
The current application deadlines were established so that DEP and Finance could make
decisions about credits and hardship exemptions prior to the applicable fISCal year in which
reduced revenues would occur so that the reductions could be accounted for in the development
ofDEP's annual budget. However, experience has shown that property owners often do not
focus on these opportunities until after they receive their property tax bills.
In
addition, we now
believe that we can develop reasonable projections for reduced revenues from these two
programs for particular fiscal years even if applications are received later in the process.
To recap, extending the application deadlines for both credits and financial hardship
exemptions until September 30 ofthe year in which the property tax bill is mailed out gives
property owners additional time to prepare these applications after receiving property
tax
bills.
This change will also make these application deadlines consistent with the current
deadline for requesting an adjustment to the Charge based on consolidation of contiguous
properties, property classification, impervious area calculation or inapplicability of the Charge to
the property. The bill applies retroactively to applications that were submitted on or before
September 30,2014, for Tax Levy Year 2014.
Thank you for the opportunity to testify in support of this bill on behalf of the County
Executive. I look forward to working with Council as it moves forward in considering this bill.