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
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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
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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)
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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
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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
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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.
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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
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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
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CURRENT FUNDING SourceIndividual (per member /lot) POACRE
Annual Income Roads Fee191905,231 M&O Fee239995,111
STD2501,000,000 Total680$2,900,324 11
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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.
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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
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MUNICIPALITY FUNDING 14
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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
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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
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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
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???? 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
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????? 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
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???? 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.
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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