AGENDA ITEM #9
February 10,2015
Public Hearing
MEMORANDUM
February 6, 2015
TO:
FROM:
SUBJECT:
County Council '
Amanda Mihill, Legislative
Attome~
Public Hearing:
Bill 2-15, Stonnwater 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 Transportation, Infrastructure, Energy and
Environment Committee worksession is tentatively scheduled for February 23, 2015 at 9:30 a.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
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Bill No.
2-15
Conceming: 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]
Double underlining
[[Double boldface bracketsD
* * *
Heading or defined term.
Added to existing law by original bill.
Deleted from 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
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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 stonnwater 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 stonnwater management
system, but is located in the same drainage area as
another that contains a stonnwater management system
and both properties have the same owner.
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(2) To receive the credit, the property owner must apply to the
Director of Environmental Protection in a fonn 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 I]
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1502
Stonnwater Management-WQPC\TR
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WQPC - Credit And Hardship Exemption (1l-17-14).Doc
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BILL
No.
2-15
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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 financial hardship
exemption submitted on or before September 30,2014 for Levy Year 2014.
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Approved:
George Leventhal, President, County Council
Date
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Approved:
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Isiah Leggett, County Executive
Date
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This is a correct copy o/Council action.
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Linda M. Lauer, Clerk of the Council
Date
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- WQPC - Credit And Hardship Exemption {1l-17-14}.Doc
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LEGISLATIVE REQUEST REPORT
Bill 2-14
Water Quality Protection Charge
Exemption Deadlines
Stormwater Management
Credit and Financial Hardship
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.
PROBLEM:
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 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 ofthe 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.
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 ofFinance
See Fiscal Impact Statement
See Economic Impact Statement
GOALS AND
OBJECTIVES:
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 ofRockville, Gaithersburg, or Takoma Park.
N/A
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
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61
L.L
OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE. MARYLAND 20850
lsiah Leggett
County Executive
MEMORANDUM
RECEIVED
~mNTGOHERY
COUNTY
COUHClt
December 9, 2014
TO:
FROM:
SUBJECT:
George Leventhal, President
Montgomery County Council
Isiah Leggett, County
Executiv-~
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
runoff with a stormwater management facility that is not maintained by the County. This bil1
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] 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 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 deadHnes 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 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 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 Kassiri, DEP Acting
Director at 249-777-7781.
Attachments (3)
c:
Joseph Beach, Director, Finance Department
Marc Hansen, County Attorney
Jennifer Hughes, Director, Office ofManagement and Budget
Fariba Kassiri, Acting Director, Department of Environmental Protection
Bonnie Kirkland, Assistant Chief Administrative Officer
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ROCKVlllE, MARYLANO
MEMORANDUM
October 16, 2014
TO:
Craig Rice, PreSidi'
~ty
Council
Jennifer A. Hughe _'\ irector, Office of Management and Budget
Joseph F. Beach, .. ctor,
Departm~ce
FROM:
SUBJECT: FEIS for Bill XX-14, Stormv.'ater Management, Water Quality Protection
Charge
Please find attached the fiscal
and
economic impact statements for
the
above­
referenced legislation.
JAH:fz
cc; Bonnie.Kirkland, Assistant Chief Administrative Officer
Lisa Austin, Offices
of
the County Ex.ecutive
Joy
Nurmi, Special Assistant to the County Executive
Patrick La.cefield, Director, Public Information Office
Joseph F. Beach, Director, Department of Finance
Fariba Kassiri, Department of Environmtntal Protection
David
Platt, Department of Finance
Alex Espinosa, Office of Management and Budget
Matt Schaeffer, Office
0
f
Management and Budget
Felicia Zhang. Office· of Management and Budget
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· FiscaJ Impact Statement
Council BiUXX-14, Stormwater Management - Water
Qulity
Protection Charge
1. Legislative
Summary.
This bill clarifies the eligibility criteria for a property owner
to
receive a Warer
Quality
Protection Charge (WQPC) credit and changes the due
date
(to
September 30) for
submittal
of both crOOit
and
fmancial hardship exemption applications.
2.
An
estimate of cbanges
in
County
revenues
and
expenditures
regardless ofwhether
the revenues or expenditures are assumed inthc recommended or approved budget.
Includes source of information, assumptions, and methodologies used.
The bill would result
in
the mailing of updated
tax
bills after initial mailings. The
Department of Finance reports
that
only a small amount of unit costs for mailing,
proportionail0
me
amount Ofbills mailed, would result from the bilL
fu
the next six
years,
the total costs ofthese mailings
to
ratepayers with approved credit applications will not
exceed $200, based on DEP'g current experience administering the credit and hardship
exemption programs.
In FY14. DEP received 110 credit applications and 24 hardship exemptions.
Ofth~
applications.
allIIO
credit application and 19 of24 hardship exemptions were approved.
Ibe
FYI5
approved budget and the
wQPe
rate incorporate these estimates ofcredits and
hardship reductiotl.<;.
Revenue reduction estimates for the
wQPe
Credit and Hardship Exemption program are
assumed
in
the current fiscal plan for the Water
Quality
ProtectionFtmd
(WQPI")and
assume the following reductions in revenue:
The
WQPC credit program:
FYI5:
$437,QOO
$656,000
FY17:
$680,000
FYIS: $720,000
FYI9: $923,000
PY20: $963,000
The WQPC hardship program:
FYI5: $39,000
FY16:
$59,000
I.1Y17: $61,000
FY18: $65,000
FYI9:
$83,000
fY20:
$86,000
FY16~
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3. Revenue and expenditure estimates covering at least the next 6 flscal years.
Revenue reductiion estimates related
to
the
WQPC
credit and hardship programs
may
fluctuate
in
future fiscal years depending
on
the number
of
ratepayers that apply for
ilie
credit and the amount ofthe
WQPC.
DEP has estimated the total fiscal impact ofeach
program below:
The
WQPC
credit program:
FYI5: $437.000
FY16: S656,OOO
FYI7:
$680,000
FY18:
$720.000
FY19: $923,000
FY20:
$963~OOO
These estimates are based on the current phase-in of
the
wQPe
credit program, 10%
annual increase
in
credit participation, and
future
wQPe increases
assumed
in
the
FY15:'20
Fiscal 'plan. Any revenue reduction due to credits is
offset
by adjustments to
ilie
WQPC In
order
to
generate sufficient
revenues
to
pay
for required stonnwater management
expenditures.
Ihe
wQPe
hardship
program:
FYI5:
$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
of actual progr'.ml participation, adjusted
vvith
the
cum.--nt
phase-in ofthe
WQPC
program,
and
future
wQPe
increases
assumed
in
the
FY15-20 Fiscal Plan.
Any
revenue reduction due to hardship applications is offset
by
adjustment.;; to
the WQPC in order to generate sufficient revenues to pay for required
~1ormwater
management expenditures,
4. An
actuarial analysis
through the entire amortb-.ation period for each regulation that
would affeet retiree pensi6n or group
insuran~e
costs.
Not applicable.
5.
Later actions that
may affect
future revenue and expenditures
if
the
regulati6n
authorizes futu re spending.
Not applicabJe.
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.
(j)
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7.
An
explanation of bow the addition of new staff responsibilities would affect otber
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.
It.
f
a regulation is likely to have no fiscal impact, why that is the case.
I
Not
applicable.
12. Other fiscal impact'S or comments.
Not applicable.
13. The following contributed to and concurred with this analysis:
Vicky Wan, Department of
Environmental Protection
Steve Shofar, Department ofEnvironmental Protection
Matt Schaeffer,
Office
ofManageruent and Budget
---'-Ilflll'-l-'............
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e~ ~--­
Management and
audget
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Economic Impact Statement
Bill ##-14, Stonnwater Management
Water
Quality
Protection Charge
Background:
This legislation would.:
• clarify the eligibility criteria for a property
OWI)t,'!
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 current deadline for credit application is October3l 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 Aprill of
the year that a property
tax
bilI is m.ailed or posted on the website. Bill ##-14
extends
the
application deadlines forthe 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 information, assumptions, and methodologies used.
The source of information is the Department of Envirornnental 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 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 values in the County.
Bill ##-14 has no economic impact because ofthe reasons stated
in
#2.
4.
If
a BiD
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.
J
0
ch, Director
i!O\n;J.t'tf'n.
ent of
Finance
/#:>/
Ii
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