AGENDA ITEM #8B
January 20, 2015
Introduction
MEMORANDUM
January 16,2015
TO:
FROM:
SUBJECT:
County Council
Amanda Mihill, Legislative Attorney
L~
Introduction:
Bill 2-15, Stonnwater Management - Water Quality Protection
Charge - Credit and Financial Hardship Exemption Deadlines
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, is scheduled to be introduced on January 20. A public hearing is tentatively scheduled
for February 10, 2015 at 1:30 p.m.
Bill 2-15 would change the due date for submittal of both credit and financial hardship exemption
applications to September 30.
This packet contains:
Bill 2-15
Legislative Request Report
Memo from County Executive
Fiscal and Economic Impact statement
Circle #
1
4
5
7
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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 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
3
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7
8
9
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
10
11
12
13
(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.
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15
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19
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(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 Director of Finance not later than [April 1]
F:\LAW\BILLS\1502 Stonnwater Management-WQPC\TR
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xx -
WQPC - Credit And Hardship Exemption (l1-17-14).Doc
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BILL
No. 2-15
28
29
30
31
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September 30 of the year [when] that payment of the Charge is
due.
*
Sec. 2. Retroactivity
*
*
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
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38
Approved:
Isiah Leggett, County Executive
Date
39
40
This is a correct copy a/Council action.
Linda M. Lauer, Clerk of the Council
Date
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- WQPC - Credit And Hardship Exemption (11-17-14).00c
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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 of applications
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 financial hardship exemption is April 1 of the 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 IMP ACT:
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 208S0
Isiah Leggett
County Executive
MEMORANDUM
MONTGOHERY
COUNTY
COUHCIL
RECEIVED
December 9, 2014
TO:
FROM:
SUBJECT:
George Leventhal, President
Montgomery County Council
Isiab Leggett, County
Executiv-~
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
runoffwith 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 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 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 bills.
In
addition, DEP now believes that it can develop
montgomerycountymd.gov/311
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 exemptions until
September 30 of the year in which the property tax bill is maiJed 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 Kassin, DEP Acting
Director
at
240-777-7781.
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, President. 'ounty Council
FROM:
SUBJECT:
Joseph F. Beach, .·e<:tot,
Departm~ce
Charge
Jennifer
A.
Hughe
'i
ector,
Office
of
Management
and Budget
.
PElS
fbr Bill XX-14.
Stonnwater Management, Water Quality Protection
Please find attached the fiscal and economic impact statements for
the
above­
referenced legislation.
JAH:fz
cc:
BO,nnie
Kirkland,
Assistant
Chief Administrative Officer
Lisa Austin. Offices of the County Executive
Joy Nurmi, Special Assistant
to
the County Executive
Patrick Lacefield, Director, Public lnfonnation Office
Joseph F. Beach, Director, Department of Frnance
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
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FiscaJ Impact Statement
Council BillXX-14, Stormwater Management - Water
Quality
Proteeti&n Charge
1. Legislative Summary.
This bill clarifies the eligibility 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 of whether
the revenues or
u:pcnditures
are assumed in the recommended or approved budget.
Includes source of information, assumptions, and methodologies used.
The bill would result
in
the ma.iling
of
updated
tax
bills after
initi.al
mailings. The
Department of Finance reports that only a
small
amount
of unit costs for
mailing,
proportional to the amount of bills mailed, would result from the bill.
In
the next six years,
the total costs ofthese mailings to ratepayers with approved credit applications
win
not
exceed $200, based on DEP' s current experience administering the credit and hardship
exemption programs.
In FYI4, DEP received 110 credit applications and 24 hardship exemptions.
Ofth~se
applications. all 110 credit application and 19 of24 hardship exemptions were approved.
The FY15 approved budget and the WQPC rate incorporate these estimates ofcredits and
hardship reducti.ons.
Revenue reduction estimates fur the WQPC Credit and Hardship Exemption program are
assumed in the current fiscal plan for the Water Quality Protection Fund (WQPF) and
assume
the
following reductions in revenue:
The
WQPC credit program:
FY15: $437,000
FY16: $656,000
FYI7: $680,000
FYlS: $720,000
FY19: $923,000
f'Y20: $963,000
The WQPC hardship program:
FY15: $39,000
FY16: $59,000
FYI7: $61,000
FYI8: $65,000
FY19:
$83~OOO
FY20:
$86,000
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3. Revenue and expenditure estimates
covering
at least the next 6 fiscal
years.
Revenue reduction estimates related
to
the
WQPC credit
and
hardship programs may
fluctuate
in
future
fiscal years
depending on the number ofratepayers
that
apply
for the
credit and the amount of the WQPC. DEP has estimated the total fiscal impact of
each
program below:
The WQPC credit program:
FY15:
$437,000
FY16:
$656,000
FY17:
$680,000
FY18: $720,000
FYI9:
$923,000
PY20:
$963,000
These estimates are b<,lSed on the current phase""in ofthe WQPC credit program, 10%
annual increasein
credit participation, and
future
WQPC
increases
assumed in the
FY15:"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.
Ine
WQPC 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 ofllie WQPC program, and future WQPC increases assumed
in
the
FYI 5-20 Fiscal Plan.
Any
revenue reduction due to
hardship
applications is
of£~et
by
adjustments
to
the WQPC in order
to
generate sufficient revenues to pay for required
stonnwater management expenditures.
4.
An
actuarial analysis through the
entire amortization period for
each
regulation
that
would affect
retiree
pension or group insuran(:e
(:080.
Not
applicable.
5. Later actions that may affect future revenue and expenditures iftbe 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 existingWQPC
staff.
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7. An explanation of how the addition of new staff responsibilities would affect otber
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
wQPe
credit and hardship programs
may
fluctuate in future
fiscal
years depending on 1he number of ratepayers
that
apply for the
credit and the amount of
the
WQPC.
lO~
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 contributed
to
and concurred with this
analysis:
Vicky Wan, Department ofEnvironmental Protection
Steve Shofar. Department of Environmeutal Protection
Matt Schaeffer, Ofticc ofManagement and Budget
Date
_1
0
//61/4
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Economic Impact Statement
Bill ##--14, Stormwater Management
Water
Quality
Protection Charge
Background:
This legislation would:
• clarify
the
eligibility
criteria
for a property owner to receive a
Water
Quality
Protection Charge credit such that the property must contain a stormwater
management system that is not maintained by the County,
and
• change the due date for submittal
of
both
credit
and
fmancial hardship exemption
applications. The current deadline for
credit
application is October.31 ofthe
year
before
the
property
tax
bill is mailed or posted on
the
Depariment 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
por,1ed
on the website. Bill ##-14
extends the application
deadlines
for
the
credit
and
exemption until September 30
of the
ye-dt
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 ofEnvironmen1al Protection (DEP).
There are no asswnptions or methodologies used
in
the
preparation
of
the
economic
impact statement.
2. A description of any variable that oould affect the economic impact estimates.
Because Bill ##-14 clarifies
the
criteria for
obtaining
a credit and
extends
the
application
deadlines for credits and hardship exemptions,
there
are no variables
that
affect the economic impact estimates.
3. The Bill's positive or negative effect,
if
any on employment, spending, saving,
investment, incomes, and property va1ues in the County.
Bm
##-14
has
no economic impact
be~ause
of
the reasons
stated in #2.
4.
If
a BiU
is
likely to have no economic impact, why is that the case?
Bill ##-14 has no economic impact.
5. The following contributed to or concurred with this analysis: David Platt and Rob
Hagedoorn,
.Finance; Vicky Wan,
Department
of Environmental Protection.
ach, Director
liU'\<>lI't1"r1.
ent of.Finance
Page lofl