T&EITEM#4
February
23, 2015
Worksession
MEMORANDUM
February
19,2015
TO:
FROM:
SUBJECT:
Transportation, Infrastructure, Energy
an~vironment
Committee
Amanda Mihill, Legislative
Attomey~.1
Worksession:
Bill
2-15,
Stormwater Management - Water Quality Protection
Charge - Credit and Financial Hardship Exemption Deadlines
Bill
2-15,
Stormwater 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
10,2015,
at
which the only speaker was Lisa Feldt, representing the County Executive, who supports this Bill.
See
©12.
Bill
2-15
would change the due date for submittal of both credit and financial hardship exemption
applications to September
30.
This packet contains:
Bill2-I5
Legislative Request Report
Memo from County Executive
Fiscal and Economic Impact statement
County Executive testimony
Circle
#
1
4
5
7
12
F:\LAW\BILLS\lS02 Stormwaler Management-WQPC\T&E 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)
change the due date for submittal of both credit and financial hardship exemption
applications; and
(2)
generally amend County law regarding the Water Quality Protection Charge.
By amending
"Montgomery County Code
Chapter 19, Erosion, Sediment Control and Stonn Water Management
Section 19-35
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. 2-15
1
2
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10
11
Sec. 1. Section 19-35 is amended as follows:
19-35.
Water Quality Protection Charge.
*
(e)
(l)
*
*
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
(D) the property does not contain a stormwater management
system, but is located in the same drainage area as
another that contains a stormwater management system
and both properties have the same owner.
12
13
14
15
16
17
18
19
(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\lS02 Stormwater Management-WQPc\TR
008-~1I
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WQPC - Credit And Hardship Exemption (11·17-14).Doc
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BILL
No. 2-15
28
September 30 ofthe year [when] that payment ofthe Charge is
due.
29
30
*
Sec.
2. Retroactivity
*
*
31
32
This Act applies retroactively to applications for credit or financial hardship
exemption submitted on or before September 30,2014 for Levy Year 2014.
33
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35
36
Approved:
George Leventhal, President, County Council
Date
37
38
Approved:
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\1502 Stonnwater Management·WQPC\TR 008·15
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WQPC- Credit And Hardship Exemption (1l-17-14).Doc
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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 ofthe Charge for that
particular
tax
levy year. The Department ofFinance 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 financial hardship exemption is Aprill ofthe year that
.
a property
tax
bill is mailed out.
PROBLEM:
GOALS
AND
OBJECTIVES:
To extend the application deadlines for a credit or fInancial 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
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
Section 19-35, which this bill would amend, does not apply in the
municipalities of Rockville, Gaithersburg, or Takoma Park.
N/A
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
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BILL
OFF1CE OF THE COUNTY EXECUTIVE
R.OCKVILLE. MARYLAND
208S0
Isiah Leggett
County Executive
MEMORANDUM
December 9,2014
~ONTGQHERY
RECEIVED
COUNTY
COIJHClt
TO:
FROM:
George Leventhal, President
Montgomery County Council
Isiab Leggett, County
Executiv'--"""1~
SUBJECT: Proposed Legislation Regarding Stormwater 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
runoffwith a stormwater management facility that is not maintained by the County. This bill
extends the deadline for applying for a credit from October 3 I of the year before a property tax
biII 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 of the year before a property tax biB 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 annua1 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
bills.
In
addition, DEP now believes that
it
can develop
montgomerycountymd.gov/311
' . . "'\
-.t
,.. 3
'~
':.'
" '
240-n3-3556
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 exemptions until
September 30 of the 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
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.
If you have any questions about this bill, please contact Fariba Kassiri, DEP Acting
Director at 249-777· 778l.
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, Preside ; 'ounty Council
\
'
Jennifer
A.
Hughe" lrector, Office of Management and Budget
Joseph F. Beach, ileetor,
Departm~ce
FElS for Bill XX-14. Stonmvater Management, Water Quality Protection
Charge
FROM:
SUBJECT:
Please find attached the fiscal and economic impact statement.:; for
the
above­
referenced legislation.
JAH:fz
cc; Bo,nnic.Kirkland,
Assh1:ant
Chief Administrative Officer
Lisa Austin, Offices ofthe County Executive
Joy
Nurmi, Special Assistant
to
the County Executive
Patrick Lacefield, Director, Public Infonnation Office
Joseph F. Beach, Director, Department of Fillance
Fariba Kassiri, Department of Environmental 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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FiseaJ
Impaet Statement
Council Bill XX·14, Stormwater Management - Water Quality Protection Charge
1. Legislative Summary.
This
bill
clarifies the
eligibility
criteria for a property
o~ner
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 reganUess ofwhefher
the revenues or expenditures are assumed
in the
recommended or approved budget.
Includes source of infonnation, assumptions, and metbod01ogies used.
The
bill would result
in
the mailing ofupdated
tax
bills after initial
mailings.
The
Department of Finance reports
that
only a small amount of unit costs for mailing,
proportional to
me
amount ofbills mailed, would result from the bilL
In
the next six
years,
the total costs of these mailings
to
ratepayers
with
appnwed credit applications
win
not
eXC<.~d
$200, based on DEP's current
experience
administering
the
credit and hardship
exemption programs.
In FYI4, DEP received} 10 credit
applications
and 24
hardship exemptions.
Of these
applications. all I} 0 credit application and 19 of24 hardship exemptions were
approved.
Ibe
FY15
approved
budget
and
the
WQPC rate incorporate
these
estimates of
credits and
hardship
reduction.s.
Revenue reduction estimates for the
WQPC
Credit
and
Hardship Exemption
program
are
assumed in the current fiscal plan for the Water
Quality
Protection .Fund (WQPF)and
assume
tile
following
reductions
in revenue:
The
wQPe
credit program:
FY15: $437,000
FY
16:
$656,000
FYI7:
$680.000
FYIS:
$720,000
FY19:
$923~OOO
FY20: $963,000
The
WQPC
hardship
program:
FYI5:
$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 fiseAlyears.
Revenue reduction estimates related
to
the:
WQPC eredit
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. DEP
has
estimated the total
fiscal
impact ofeach
program below:
The
WQPC credit program:
FY15:
$437,000
FY 16:
$656,000
FYI7:
$680,000
FYl&:
$120,000
FYI9:$923,OOO
FY20: $963)000
These estimates are
b~ed
on the current phase-in ofthe WQPC credit program, 10%
annual increasein credit participation,
and future
WQPC
increasesassum.ed
in
the FY1S:"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 stonnwater management
expenditures.
The WQPC hardship program:
FY15:
$39,000
FYI6;
$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 of the WQPC program,
and
future WQPC increaseS assumed
in
the
FY15..20 Fiscal Plan. Any revenue reduction
due
to hardship applications is off.o;et
by
adjustmento;
to the WQPC in order to
generate sufficient
revenues
to
pay for required
:.1ormwater
management expenditures.
4. An actuarial analysis through the entire amortization period for each
regulation
that
would
affect
retiree pension or group insurance costs.
Not applicable.
5. Later actions
that
may affect future revenue and expenditures if.tbe
r~lation
authorizes
future
spending.
N
at
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.
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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 eosts 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 casc.
Not applicable.
12. Other fiscal impacts or comments.
Not
applicable.
13.
Th~
following contributed to and concurred with this analysis:
Vicky Wan, Department ofEnvironmental Protection
Steve Shofar, Department of Environmental Protection
Matt Scbaeffer, Office ofManagement and Budget
-1
0
/16114
Date
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Economic Impact Statement
Bill ##-14, Stonowater Management
Water Quality Protection Charge
Background:
This legislation would.:
• clarifY
the
eligibility criteria for a property owner to receive a Water
Quality
Pr.otection Charge credit such that the property must contain a stonnwater
management system that is n.ot maintained by fue County. and
• change the due
date
for
submittal .of both credit and
financial
hardship exemption
applications. The current deadline for credit application is Oct.ober
.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 mailed
or
po51ed on
tbe
website.
Bill ##-14
extends the application deadlines for1he credit and exemption until September 30
ofthe year in which the property
tax
bill
is
mailed or posted on the website.
1. The
sources
of
info
rmati
Oil;
assumptions,
and
methodologies
used.
The source .of informati.on is the Department of Environmental Protection (DEP).
There are no assumptions or methodol.ogies used in
the
preparation of
the
econ.omic
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 exempti.ons, there are no variables
that
affect the economic impact: estimates.
3. The Bill's positiYe or negative effect,
if
any
on. employment, spending, saving,
investment, incomes, and property values in the County.
Bill
##-14
has no economic impact because of the reasons stated in #2.
4.
If
a BiD is likely to
have
no
economic impact, wby
is
that the
case?
Bill ##-14
has
no economic impact.
5.
The
following contributed to or concurred
with this
analysis:
David
Platt
and
Rob
Hagedoom,
Finance; Vicky Wan, Department of
Environmental Protection.
Date
}
I
Page I 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 Bill 2-15, which would change the application deadlines for credits
and fmancial 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 runoffwith 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 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 of the 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 of the 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 ofthe County
Executive. I look forward to working with Council as it moves forward in considering this bill.