Commissioners approve FY2021 CIP, keep property tax rate and send plan to planning commission

The St. Mary's County Board of Commissioners on Feb. 25 approved the county's FY2021 Capital Improvements Program, kept the county's property tax rate at 0.8478 and directed staff to take the CIP to the Planning Commission for review.

The CIP approval follows staff's presentation that showed the FY2021 request rising to $87.5 million from an approved base of $83.5 million after project changes and consolidations directed in prior work sessions. Chief Financial Officer Jeanette Kenmore said the plan identifies funding sources and includes a $33 million request for general obligation bond authority submitted to Annapolis.

Kenmore told commissioners the FY2021 funding mix includes bond authority, an estimated $6.9 million in transfer tax, $8.7 million in pay-go funding that had been discussed in December, roughly $26.6 million in state and federal funding, and $1.6 million in other sources. She also said operating impacts for FY2021 were reduced from earlier estimates and are now around $585,000, largely because the adult detention center work was pushed out of the year.

Why it matters: the CIP and its funding choices determine which capital projects move forward this year and how the county borrows and spends public dollars. The board's decision to send the CIP to the Planning Commission begins the formal review process; the county's bond request and funding assumptions will guide borrowing and project timing.

Impact-fee discussion

A lengthy portion of the work session focused on the county's impact-fee calculation, particularly how school-related projects are treated. Kenmore presented the impact-fee cost analysis and said, under the current formula and the plan for 2020, the school capacity projects produced a calculated impact fee of zero. She explained the county phases in changes and that, because there were no capacity projects in the FY2020 budget, no school impact fee was being assessed for 2020.

Commissioner Guy and other commissioners raised concerns about relying on state school construction funding (House Bill 1) and the risk that state formula allocations will not match local needs for school renovations and new capacity. Commissioners pressed staff to review whether renovations and major refurbishments can be counted in the county's impact-fee ordinance the same way the county currently treats roads and parks assets.

Kenmore said the county attorney previously allowed some flexibility in appropriating collected impact fees to different capital uses and that staff would return with whether renovations could be included in the ordinance or would require a change in law or a resolution. The board asked staff to consult the county attorney and bring options back for review.

Votes at a glance

- Approve FY2021 CIP as presented and forward to the Planning Commission (motion passed). The motion included the caveat that the impact-fee section would be reworked; staff will return with any funding-source changes if impact fees are applied to Board of Education projects. (Transcript indicates the motion passed; vote tally not specified in the record.)

- Approve maintaining the county's property tax rate at 0.8478 (motion passed). (Transcript indicates the motion passed; vote tally not specified in the record.)

What's next

Kenmore said staff will present the CIP to the Planning Commission on March 9. The county attorney and finance staff will review the impact-fee ordinance language to determine whether school renovations may be included in the calculation or whether an ordinance or resolution change is required. Staff will return with revised funding sources and updated CIP sheets if the impact-fee treatment changes.

Ending

Commissioners approved the CIP and sent it to the Planning Commission. Staff will report back on the legal and technical options for including school renovation costs in impact-fee calculations and will update the CIP funding schedule if the board elects to use impact fees for Board of Education projects.