(a) In order to issue bonds, the Council must adopt a resolution that:
(1) describes the infrastructure improvements to be financed and states that the County has complied with the procedures in this Chapter;
(2) specifies the maximum principal amount of bonds to be issued;
(3) covenants to levy special taxes, special assessments, or both, at a rate and amount sufficient in each year when any bonds are outstanding to:
(A) provide for the payment of the principal of and interest on the bonds, and the redemption premium, if any, on the bonds;
(B) replenish any debt service reserve fund established with respect to the bonds; and
(C) enforce the collection of all special assessments and special taxes as provided in Section 52-36, et seq., of the County Code and Section 14-808, et seq., of the Tax Property Article of the Maryland Code, or other applicable law; and
(4) specifies (to the extent not already controlled by state or County law) the basis of any special assessment, special tax, fee, or charge in a development district, and any exemptions from a special assessment or special tax subject to any change in law that does not materially impair the district's ability to pay principal and interest and maintain adequate debt service reserves;
(5) declares that:
(A) the construction of the infrastructure improvements financed by the bonds:
(i) creates a public benefit, and special benefits, if applicable, to the properties assessed in the development district; and
(ii) serves a public purpose; and
(B) the projected special assessment, special tax, fee, or charge revenue will be sufficient to retire the bonds, taking into account the value of land in the district; and
(6) (A) prohibits acceleration of assessments or taxes because of any bond default;
(B) sets a maximum special assessment, special tax, fee, or charge applicable to each individual property in a development district; and
(C) prohibits any increase in, or extension of the term of, the maximum special assessment, special tax, fee, or charge applicable to any individual property because of any delinquency or default by any other taxpayer.
(b) To the extent not otherwise required by state law, the resolution may specify, or may authorize the Executive by executive order to specify as needed:
(1) the actual principal amount of the bonds to be issued;
(2) the actual rate or rates of interest for the bonds;
(3) how and on what terms the bonds must be sold;
(4) how, when, and where interest on the bonds must be paid;
(5) when the bonds may be executed, issued, and delivered;
(6) the form and tenor of the bonds, and the denominations in which the bonds may be issued;
(7) how, when, and where the principal of the bonds must be paid within the limits in this Section;
(8) how any or all of the bonds may be called for redemption before their stated maturity dates; or
(9) any other provision not inconsistent with law that is necessary or desirable to finance an infrastructure improvement.
(c) The special fund and any sinking fund or reserve fund established by the County to provide for the payment of the principal of or interest on any bonds issued by the County under this Chapter may be invested by the County fiscal officer having custody of the fund in the manner prescribed under Article 95, Section 22 of the Maryland Code. Any fiscal officer having custody of the proceeds of the sale of any such bonds may invest the proceeds, pending their expenditure, as prescribed under Article 95, Section 22.
(d) To the extent provided in State law, the principal amount of the bonds, the interest payable on the bonds, their transfer, and any income derived from the transfer, including any profit made in the sale or transfer of the bonds, must be exempt from County taxation of any kind.
(e) The adoption of a resolution under this Section does not:
(1) obligate the County to issue bonds; or
(2) confer any contract, property, or other right on any person. (1994 L.M.C., ch. 12, § 1; 2008 L.M.C., ch. 34, § 1.)
Editor’s note—See County Attorney Opinion dated 4/12/06 regarding the method of creating a development district and sources for the Executive Fiscal Report.
2008 L.M.C., ch. 34, took effect on January 26, 2009.
2008 L.M.C., ch. 34, § 3, states: Applicability; interpretation.
(a) Any amendment to County Code Chapter 14 made in Section 1 of this Act applies to any action taken after this Act take effect.
(b) Any amendment to County Code Chapter 14 made in Section 1 of this Act does not alter or affect any Council resolution adopted, or other action taken with respect to a development district, before this Act takes effect.
(c) Any amendment to County Code Chapter 14 made in Section 1 of this Act does not indicate that the previous version of a provision amended by Section 1 of this Act should be interpreted differently from the same provision as amended by Section 1 of this Act.
(d) Any notice or disclosure requirement in Section 14-17, as amended by Section 1 of this Act, applies to any sale contract signed, and any sales material or advertisement for sale disseminated, after this Act takes effect in any development district created, and in any proposed development district for which the Council adopted a resolution under Section 14-6, after January 1, 2001.