Calvert Shores: Petition for Municipality Referendum Gets GO

[Editor]

Date: Jan. 6, 2016

From: Cathy Zumbrun, Chair, Calvert Shores Organizing Committee

Re: Petition for Municipality Referendum Gets the Green Light

The Calvert Shores Organizing Committee gathered more than 2,300 signatures over a 13-month period to petition the Board of County Commissioners (BCC) to consider a referendum to incorporate the municipality of Calvert Shores. The petition was submitted on November 4, 2015. The Calvert County Board of Elections recently verified the petition submitted by the Committee, finding that at least 25% of registered voters within the boundaries of the proposed municipality signed the petition, the legal requirement for verification. The boundaries include most, but not all, of the Chesapeake Ranch Estates (CRE), and extend out to Route 4, including the commercial center in Lusby. On January 5th the BCC appointed John Norris, III, county attorney, to serve as their liaison to the Committee.

The next steps in the incorporation process are for the Committee to:

o Actively seek information and input from the county through the liaison

o Hold a Community Information Meeting at the CRE Clubhouse on January 11, 2016, at 7PM to discuss the draft Charter

o Hold a Public Meeting to collect testimony from the affected community on February 3, 2016, at 7PM at the Southern Community Center

o Submit a report on issues related to the proposed incorporation to the BCC within 90 days after receiving verification of the petition

Cathy Zumbrun, the chair of the Committee, stated, "We are excited that this critical hurdle has been achieved so the community's decade's long quest to improve financial solvency and quality of life is one step closer to realization." For more information on the proposed municipality and the incorporation process, visit the web site at CalvertShores.org or Facebook/Calvert Shores, or send an email to calvertshores [at] gmail.com.

 

[LightRoasted]

If I may ...

No, it does not have a "go". The Commissioners still need to decide if the question of a municipality will be placed on the ballot to be voted on. And this Cathy is such a joke, "Cathy Zumbrun, the chair of the Committee, stated, "We are excited that this critical hurdle has been achieved so the community's decade's long quest to improve financial solvency and quality of life is one step closer to realization."" And government is always financially solvent and always improves quality of life, yeah right. Trading one evil for another ... that will have the power of taxation if enough stupid people vote for it.

 

[officeguy]

Long overdue. A very dense area with 'city' issues that the government model of a rural county Iis not well set up to deal with. That way they can take care of their own problems.

 

[NorthBeachPerso]

Long overdue. A very dense area with 'city' issues that the government model of a rural county Iis not well set up to deal with. That way they can take care of their own problems.

Not to mention that the POA is underfunded and the County won't take over the roads unless they're upgraded, which they can't be with the current fee structure.

Yes, it means more property taxes, but the opportunities they'll have will be immense. Bonding authority (for the roads), ability to secure grants for a wide range of projects (beach replenishment, pier construction, wetlands restoration), ability to zone (commercial area near the beach?), police department (if they choose to. It might be more cost effective for them to contract with the Sheriff as North Beach and Chesapeake Beach do).

Oh, unlike POA dues, property taxes are deductible on your federal tax returns.

 

[softtouch]

NorthBeach,
How much do you pay in town taxes?
In the CRE I currently pay $689.33 total when adding up the M&O fees, road fees and special tax district.

 

[officeguy]

Not to mention that the POA is underfunded and the County won't take over the roads unless they're upgraded, which they can't be with the current fee structure.

Would the county even take over the roads if there was a municipality ?

Yes, it means more property taxes, but the opportunities they'll have will be immense. Bonding authority (for the roads), ability to secure grants for a wide range of projects (beach replenishment, pier construction, wetlands restoration), ability to zone (commercial area near the beach?),

Isn't there an offset on the county share of the tax if you live in a incorporated town ? In the end, you probably still pay a bit more, in return you get additional services and you have a say in how the money is spent. Fixing the problems in the CRE area would increase property values and make up for the slight increase in taxation.

police department (if they choose to. It might be more cost effective for them to contract with the Sheriff as North Beach and Chesapeake Beach do).

Chesapeake shores would have a population larger than that of Chesapeake Beach and North Beach combined. Probably still too small to make it worthwhile to establish an effective PD. I am familiar with some smaller towns where the local PD is only a limited services agency that covers daytime only and does things like code enforcement with the SD providing most emergency response and overnight coverage. Given the quality of life issues in the CRE, that may be a worthwhile approach.

 

[NorthBeachPerso]

Would the county even take over the roads if there was a municipality ?



Isn't there an offset on the county share of the tax if you live in a incorporated town ? In the end, you probably still pay a bit more, in return you get additional services and you have a say in how the money is spent. Fixing the problems in the CRE area would increase property values and make up for the slight increase in taxation.




Chesapeake shores would have a population larger than that of Chesapeake Beach and North Beach combined. Probably still too small to make it worthwhile to establish an effective PD. I am familiar with some smaller towns where the local PD is only a limited services agency that covers daytime only and does things like code enforcement with the SD providing most emergency response and overnight coverage. Given the quality of life issues in the CRE, that may be a worthwhile approach.

I didn't mean that about the roads. The County won't take them over if it becomes a municipality. It also won't take them over if there isn't a municipality without them being brought up to County standards, which the POA can't currently afford to do with current reserves, or secure funding to do. One of the biggest complaints down there is the roads.

There is a Tax Differential in Calvert County for municipalities which lowers the County taxes for the town's residents. The end of the day number for total property tax number for both entities is higher than in an unincorporated area.

Police officers cost about $110K each per year when all the costs are loaded. To provide full time 24 hour/day coverage you need a minimum of 8 FTEs, so you're looking at almost $1M/year for police services.

 

[softtouch]

Because of the curves and hills the roads can't be brought to County standards without the authority to take private property.

 

[officeguy]

Because of the curves and hills the roads can't be brought to County standards without the authority to take private property.

Which is something a town could do.

 

[NorthBeachPerso]

NorthBeach,
How much do you pay in town taxes?
In the CRE I currently pay $689.33 total when adding up the M&O fees, road fees and special tax district.

Around $3000 total County and Town property taxes. Also included County Solid Waste and Landfill fee, Town Special Assessment benefit charge for water and sewer (doing it that way allows the entire amount to be deducted instead of just the interest portion) and Town trash service (twice a week household pick up, once a week recycling pick up, bulk on a call in to schedule basis).

Factor out the non-tax charges, around $2300 combined County/Town property tax. Around 60% is Town, 40% County.

Keep in mind that we've owned the house so long that the Homestead Exemption really keeps the tax load down. I'm taxed on about 1/2 of the state assessment.

 

[softtouch]

I suspect the tax split between the county and the town has to be negotiated and is not a fixed amount.
Seems impossible to estimate my tax load if this municipality thing passes and we switch to an assessed value based system.
In the current fee and special tax system every property owner pays the same amount for a single lot to the CRE (owners of more than one lot only pay one M&O fee).
Doesn't matter whether it's an undeveloped lot that wont perk or a waterfront developed lot on the bay.
For me the county tax bill plus the CRE stuff is $3041. The same as your tax load.

 

[NorthBeachPerso]

I suspect the tax split between the county and the town has to be negotiated and is not a fixed amount.
Seems impossible to estimate my tax load if this municipality thing passes and we switch to an assessed value based system.
In the current fee and special tax system every property owner pays the same amount for a single lot to the CRE (owners of more than one lot only pay one M&O fee).
Doesn't matter whether it's an undeveloped lot that wont perk or a waterfront developed lot on the bay.
For me the county tax bill plus the CRE stuff is $3041. The same as your tax load.

Technically there's no split, but here's how it works:

You know that property tax is levied using the tax rate per $100 of assessment:

Currently the tax rate in Calvert County in unincorporated areas is $0.892 per $100 of assessment.

In North Beach and Chesapeake Beach the County tax rate is $0.556 per $100. The lower amount is the tax differential which is set every year through discussions between the Towns and the County. It's been that difference in rate for years.

So, if a house in North Beach is assessed at $100K the tax is $556 to the County. I picked $100K just for ease of math

The Town tax rate for North Beach is $0.6337 per $100. So that owner pays $633 in property taxes to the Town.

Total property taxes for the County and North Beach $1190 plus around $100 for the State property tax, so just around $1300.

Chesapeake Beach's tax rate is $0.36 per $100, mostly because of the high dollar townhouses and the amount of commercial property. At one time (15 or so years ago) Windward Key and the Rod N Reel assessable base was more than all of North Beach's.

http://www.dat.state.md.us/sdatweb/taxrate.html

Without knowing the tax rate for the proposed municipality it's difficult to estimate your tax load.

The fairness piece comes in a bit. Those unbuildable lots will zero out while the high priced waterfront lots will pay more. The dual lot owners will, too.

I would encourage you guys to incorporate (although it may negatively impact the Beaches) simply because you have to do something. What you're doing now isn't working.

 

[officeguy]

The fairness piece comes in a bit. Those unbuildable lots will zero out while the high priced waterfront lots will pay more. The dual lot owners will, too.

Do the folks with the waterfront lots use the roads any more than those with a little hovel off a gravel road ? One could argue that payment for road access and maintenance should be assessed on a per occupied dwelling basis.

 

[NorthBeachPerso]

Do the folks with the waterfront lots use the roads any more than those with a little hovel off a gravel road ? One could argue that payment for road access and maintenance should be assessed on a per occupied dwelling basis.

Do they, probably not. But that's not how property taxes work. Those with higher valued property pay more in taxes. Call it a "wealth fee" if you like.

Is it fair that the Town's residents have to pay a solid waste fee to Calvert County for the compactor sites? We do, even though we pay tipping fees through our trash fees.

Is it fair that everyone in Calvert County is paying to rescue those people who built on the cliffs that are collapsing?

We hear it all the time up here from the waterfront folks about how much they pay in taxes. Well yeah, your house is valued at 2 or 3 times the average so what did you expect?

The following is my opinion:
The Ranch Club was never set up to be what it's become, a densely populated area of 14000 people. The model under which it was founded doesn't work any longer
If nothing is done, at some point, next year, 5 years, 10 years it will implode and collapse. When that happens the County will take it over and impose a Special Tax District. With a municipality you can control your destiny and that implosion won't happen.

 

[officeguy]

Do they, probably not. But that's not how property taxes work. Those with higher valued property pay more in taxes. Call it a "wealth fee" if you like.

I know that that's how it works. The system of progressive taxation where those who own more pay a much larger share of the bill for services they may or may not take advantage of. Even worse with the school district.

The following is my opinion:
The Ranch Club was never set up to be what it's become, a densely populated area of 14000 people. The model under which it was founded doesn't work any longer
If nothing is done, at some point, next year, 5 years, 10 years it will implode and collapse. When that happens the County will take it over and impose a Special Tax District. With a municipality you can control your destiny and that implosion won't happen.

Agreed.

 

[vince77]

Sounds very expensive. Are any professionals involved in this endeavor?

 

[NorthBeachPerso]

Sounds very expensive. Are any professionals involved in this endeavor?

Expensive? I guess. Pretty much anywhere you live that's incorporated has a higher tax load than the unincorporated area.

The upside is services are closer.

A couple examples, and these are for North Beach only. I can't speak for, nor do I want to, Chesapeake Beach.

We have 24 hour police services (shared with Chesapeake Beach). Two Deputies assigned to the Towns on duty, every shift. This is where they are. They're not out running radar on RTE 4, they're not down at Dominion playing Special Forces. They're here, on the streets, on the Boardwalk, driving through Town. You live in the County (even in the Ranch Club) and you're part of the regular road patrol, maybe, just maybe, 10 Deputies per shift covering the entire County along with maybe 4 MSP troopers. That's a perfect world. Usually you can cut 1/3 of the Deputies out.

When it snows, our streets are cleared and treated before the County's contractors are even on the road up at this end. It's not unusual to drive out of the Beach on clear streets and hit snow covered right outside Greenwood.

If the Ranch Club was like it used to be, a few full time residents with a bunch of weekenders this wouldn't even be being discussed. But it's outgrown itself. The County won't take over the roads because they're not up to County standard. The POA doesn't have enough money to bring them up to that standard. Is that road that collapsed during Isabel (?) open yet? That was in 2003.

Crime is an issue in the Ranch Club (it really isn't but it is, if you catch what I mean). The Deputies do a patrol in it maybe once per shift. A Club based patrol (whether their own or on a contract similar to the Beaches) would put a couple cops, minimum, on the roads 24 hours a day.

I think the organizers, rather I know, are being assisted by the MD Municipal League. Those guys are pretty sharp.

 

[softtouch]

Thanks for your feedback on this NorthBeach it has been very informative.
Running my personal numbers through the math has been interesting. If we get the same County tax rate as the Beaches, and my tax load the same as now, the Calvert Shores would get more than double what the CRE gets now.
My assessment is 222,200
1982.02 + 689.33 = 2671.35 County tax plus CRE stuff.
2671.35 ÷ 2222 = 1.202 total County plus CRE tax rate.
1.202 - .556 = .646 town tax rate.
2222 x .646 = 1435.41 town tax.
1435.41 - 689.33 = 746.08 Town tax minus CRE stuff equals a $746.08 increase for the town and loss for the County.

So if the Calvert Shores County tax rate is .556, the same as the Beaches, then a town tax rate of .646 is the breakeven point for me.

 

[softtouch]

I know that that's how it works. The system of progressive taxation where those who own more pay a much larger share of the bill for services they may or may not take advantage of. Even worse with the school district.

I believe the real-estate tax is considered a flat tax. Where everyone pays the same rate.
With a progressive tax like the federal income tax, those with more pay a higher rate.

 

[LightRoasted]

If I may ...

The upside is services are closer.

What services exactly would be "closer" that already aren't already being provided for by the county? Deputies? Like that would stop any crime. Has it stopped any crime in the beaches? The only thing a municipality in Lusby would be is an HOA on steroids with the acrimony, bitterness, backstabbing goings on that the current HOA structure already has. The only difference is that any policy/ordinance/rule voted on by a municipality and passed has the full force of law. The people behind this municipality push are deeply anal and want nothing better than to control the residents and impose their "vision" of how others should live, and to make them pay for it. Lusby, and CRE, is doing just fine without more expansive and expensive government.