Key Points of Bill 32-25

Bill 32-25 is a power grab by Anne Arundel County, reducing local district control and increasing county oversight.
It will lead to tax increases as districts face new costs from administrative charges and compliance rules.
Research suggests these changes could strain district budgets, likely raising taxes for residents.

What Are Special Community Benefit Districts (SCBDs)?

Special Community Benefit Districts (SCBDs) are local areas in Anne Arundel County where residents pay extra taxes to fund specific improvements, like better roads, parks, or shoreline protection. These districts are run by community members who decide how to use the money for local benefits. However, a new bill, Bill 32-25, introduced by Council member Lisa Rodvien, could change this by giving the county more control and potentially raising taxes. This webpage explains why this bill is a power grab and how it will lead to higher taxes for residents.

Why It Is a Power Grab?

The bill forces districts to follow the Maryland Open Meetings Act and parts of the Maryland Homeowners Association Act, requiring open meetings and officer training. It also lets the county withhold funds or dissolve districts for non-compliance, giving the county more control and reducing local decision-making power.

Detailed Provisions of the Bill

Administrative Charge Modifications

- Starting FY 2027, 5% of taxes for districts managing disbursements, adjusted by CPI.

- FY 2028, 7% for districts not managing disbursements.

- FY 2029, 9% for districts not managing disbursements, with CPI adjustments.

- Minimum charge: $100; Maximum charge: Increases from $2,000 to $10,000, with annual CPI-based increases.

Penalties for Non-Compliance

County may reject budget submissions, withhold funds (except loan repayments), prohibit expenditures, or require reimbursement via tax assessment for improperly spent funds.

Dissolution

District may be dissolved by ordinance if non-compliant for 2 years after notice, unless contractual obligations exist. Assets divided equitably among property owners, unencumbered funds distributed proportionally based on recent tax collection.

Compliance Requirements

Associations must comply with Maryland Open Meetings Act (§§ 3-301 to 3-307, General Provisions Article) and Maryland Homeowners Association Act (§§ 11B-111(3), 11B-112(A), (B), 11B-112.2(F), 11B-113.6, Real Property Article). Meetings open to property owners and public, at least one officer must complete Open Meetings Act training within 90 days, certification required with budget.

How It Will Lead to Tax Increases

Research suggests Bill 32-25 will lead to tax increases for residents through several mechanisms, as detailed in the Capital Gazette article on April 27, 2025, Anne Arundel considers reforming special tax districts after embezzlement scandal. The financial impact includes:

Administrative Charge: The bill introduces or increases an administrative charge, currently set at 5% for districts managing their own disbursements, effective FY 2027, with adjustments based on the Baltimore region Consumer Price Index (CPI). For districts not managing disbursements, it rises to 7% in FY 2028 and 9% in FY 2029, with CPI adjustments. The maximum charge per year also increases from $2,000 to $10,000, with annual CPI-based increases. This means a portion of the taxes collected, for example, $5,000 out of $100,000, goes to the county's general fund, reducing funds available for local projects. To maintain services, districts will likely raise taxes on residents.
Compliance Costs: The compliance requirements, such as holding open meetings and ensuring at least one officer completes training, will incur additional administrative costs. Districts may need to hire staff or consultants to manage these new obligations, and the training, while free, requires time and potentially additional resources. These costs will strain district budgets, and since they rely on tax revenue, the burden will be passed on to residents through higher taxes.
Penalties and Potential Dissolution: The bill's penalties for non-compliance, such as withholding funds or requiring reimbursement via tax assessment for improperly spent funds, could force districts to spend more on ensuring compliance to avoid penalties. This additional expenditure will further necessitate tax increases to cover the costs. The possibility of dissolution adds pressure, as districts may prioritize compliance over efficiency, increasing operational expenses.

An example from the research: if a district collects $100,000 in taxes and 5% ($5,000) goes to the county, plus extra costs for compliance, say $2,000, the district might need to raise taxes by 7% to maintain the same level of service, directly impacting residents' tax bills.

EXAMPLE EMAIL TO SEND TO SHOW OPPOSITION

Emails of council members to email: peter.smith@aacounty.org allison.pickard@aacounty.org nathan.volke@aacounty.org julie.hummer@aacounty.org amanda.fiedler@aacounty.org
lisa.rodvien@aacounty.org shannon.leadbetter@aacounty.org

Subject: Urgent: Oppose Bill 32-25 – It Will Raise Our Taxes and Take Our Control

Dear Council Member [Name],

I am writing to express my strong opposition to Bill 32-25, which I believe is a power grab by the county that will lead to higher taxes for residents like me.

The bill forces our local districts to follow more rules, like holding open meetings and training officers, which will cost a lot of money. These costs will be passed on to us through increased taxes because the districts won’t have enough money to cover them otherwise. Additionally, the county will take a portion of our tax money, leaving less for our community projects, which means we’ll likely see our taxes go up to make up for it.

This bill also gives the county more control over our local districts, reducing our ability to decide how our tax money is spent. I’m concerned that well-run districts will be unfairly affected, just like those with problems, and we’ll lose our voice in local decisions.

Please vote no on Bill 32-25 to protect our community from higher taxes and to keep our local control. Our district is doing fine, and we don’t need these changes that will only make things more expensive and complicated for us.

Thank you for considering my concerns.

Sincerely,
[Your Name]
[Your Address]
[Your Contact Information]