CALVERT SHORES Calvert Shores Organizing Committee 1.

CALVERT SHORES Calvert Shores Organizing Committee 1

WHAT IS A MUNICIPALITY? An incorporated city, town, or village chartered by the State at the request of a civic group to fulfill local government needs and functions for a population concentrated in a particular area. Elected officials live in the municipality. Municipalities can provide any service except courts, jails, heath departments or schools. 2

MUNICIPALITIES IN MARYLAND Maryland has 156 municipalities 45,000 (Rockville, Frederick, etc) to 40 (Port Tobacco). Median population is 1,300 people. Six in Southern MD: ( North Beach, Chesapeake Beach, Leonardtown, Indian Head, La Plata, & Port Tobacco) 3

4 CALVERT SHORES The name was chosen because: Describes the location and most significant geographic feature. The name does not make use of any subdivision name located within the town. Statistics - Calvert Shores is comprised of the following (approximate): 10,500 people 5,641 homes 4.7 square miles 75 miles of municipal roads (currently 65 miles private)

6 REASONS TO CREATE CALVERT SHORES Provide local governance Town officials would be elected from our area & understand needs We would gain a direct voice to state and federal agencies to resolve problems. Improve Services for our 10,500 people by way of: Reliable Ordinance Enforcement Increased local police patrols Transportation improvements. Green/open space management Increase funding stream

REASONS TO CREATE CALVERT SHORES Return Residents Tax Dollars Directly Back to their Community: State Income Tax County Property Tax Gas and Car Registration Tax Income Tax Receive State & Federal Loans / Grants for Current & Future Needs: Parks, Recreation, Bike Trail Development Youth & Senior Services Environmental System Management Disaster Preparation/Recovery (FEMA/MEMA) 7

8 REASONS TO CREATE CALVERT SHORES Gain Authority and Control Over Our Community: Locate the government closer to home to improve services, response, and spending in our area. Control local Ordinance and Critical Area management Obtain local Zoning control to manage local growth (optional). Manage municipal road improvements and maintenance Establish a Greater Sense of Local Community Promote Positive Reputation. Ensure adherence to Town Center plan development.

9 REASONS TO CREATE CALVERT SHORES Plan for the Future - Local Planning to Manage Growth Related Challenges: Environmental Issues Planning and Funding Issues Transportation Issues Commercial Development Green/Open Space Sustain Property Values Downturn in real estate caused an increase in absentee owners and landlords causing deterioration Local government can help to ensure appearance of properties is maintained

10 REASONS TO CREATE CALVERT SHORES Private Community Governing Problems are Impacting Area Property Values: 10,500 people living in the private communities. Reduce Roles and Responsibilities of Property Owners Associations; shift them to Local Government. Obtain reliable, secure and increased level of funding. Qualify for County, State, and Federal Assistance: Emergency Aid Critical Areas Transportation (roads, trails, buses, etc.) Convert fees into tax deductible Property Taxes

CURRENT FUNDING SourceIndividual (per member /lot) POACRE Annual Income Roads Fee191905,231 M&O Fee239995,111 STD2501,000,000 Total680$2,900,324 11

STATE-SHARED REVENUES Highway User Revenues (HURs) The largest source of state shared funds. A formula based on road mileage and registered vehicles These are special purpose funds and may be used only for roads, sidewalk and transportation projects (including bike lanes and trails). State Aid for Police Protection a significant source of revenues. Divided between a county and municipalities on the basis of relative police expenses for the prior year. Business License Fees (Traders Licenses) Fees for licenses for pool tables, bowling alleys, vending machines, restaurants, peddlers, and other business activities. State Aid for Fire, Rescue and Ambulance Services Distribution made to fire departments that receive more than $25K from municipal sources for fire protection. The funds may be used for non-personnel expenses. 12

STATE ADMINISTERED LOCAL REVENUES Income Tax is provided to each municipality by the state based on the greater of either 0.37% of the state tax liability or 17% of the county income tax liability of residents within its boundaries. These payments are deducted from the county share of the local income tax and are paid quarterly by the State. Admissions & Amusements Tax is an optional municipal tax on revenue derived from entertainment and amusement activities within a citys or towns boundaries. It is collected by the state and returned to municipalities after deducting an amount of revenue sufficient to cover the States administrative costs. 13

MUNICIPALITY FUNDING 14

SUMMARY Eligibility standards for each of the state administered local revenues and state shared revenues vary and require the filing of reports with appropriate state agencies. Predicting state shared revenues for incorporated areas is usually not difficult, since municipal officials may base estimates on prior year data and projections are made available by state agencies. For an unincorporated community considering incorporation, reliable estimates are more difficult to obtain. Still, by using budgets from existing cities or towns of similar population, size, tax base, and breadth of services, a rough estimate is possible. 15

MUNICIPALITY FUNDING WORKING ESTIMATES DescriptionCS Share Recordations Real Estate Tax $2,930,842 Pers Prop Tax Un Bus $2,540 Pers Prop INC Bus $5,000 Income Taxes $1,463,149 Sub TOTAL Taxes $4,085,001 Penalties & Interest $5,835 Public Utilities Tax Licenses + Permits $1,679 State Shared Rev $711,160 -Motor Fuel Fund -Highway User Rev -Vehicle Title/Reg St Aid Police $81,396 TOTAL $4,885,071 16

CREATING A MUNICIAPLITY Maryland Law Requires: 1.Name: Calvert Shores 2.Establish an Organizing Committee Completed 3.Committee Petitions the Residents - (in progress) Need 25% of registered voters to sign (18 month duration ends March 2016 ) 4.Committee holds Public Hearings & County Must Authorize a Vote (~ 6 month duration). 4. Register Voters within the Municipality Boundaries Vote If the vote passes, Municipality established 17

???? FREQUENT ???? What Would the Government be Like ? The Maryland Municipal League advises and other municipalities have some version of a town administrator, mayor and town council. To be determined after the petition (per MD law) but before the election vote. Citizens will have input on which version they want. See MML website for more details on types and best practices. (www.mdmunicipal.org) 19

????? FREQUENT ???? What Happens to Property Owners Associations and Their Private Assets? This is a sequential process, after the municipality is approved. As POA hands over duties to the town, their responsibilities would decline. Road and STD Fees would drop as responsibilities and possession of assets is reduced. If they keep M & O assets (e.g. beaches) it remains private and funded by fees. People in each community decide (by vote) their future role: Dissolve Reduce Stay the same 20

???? FREQUENT ???? Who Pays for Private Road Maintenance & Upgrades? Routine maintenance would be primarily funded by Maryland State Gas & Car Registration Tax. Income from these sources far exceeds current Roads and STD income. Major road upgrade projects could also be financed if needed by 15-year municipal bonds. 21

WHAT NEXT? Sign the Petition! 2,500 voter signatures allows us to fully explore the town alternative. The Petition does not alone create the town. Once Petition is completed Committee will hold public hearings and have to authorize a vote. Organizing Committee will develop (with community feedback) the type of government, duties and detailed budget and revenue. Vote! If the vote is YES we have a town! 22

CALVERT SHORES Calvert Shores Organizing Committee 1.

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