EASTERN SHORE
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Legislative and Regulatory Issues Impacting the Eastern Shore
Wicomico County Administration
Wicomico County Government office building is closed to the public. Most staff is currently teleworking, while others continue normal operations. However, plans are still being reviewed and permits issued. Staff is conducting inspections, but they have requested that contractors wait outside while they go in and inspect. The lobby in the Government Office Building contains a box to drop plans, etc. off for review. Wicomico County Council meetings are being conducted virtually and are open to the public. You can view the meeting live on www.pac14.org on You Tube or call in by telephone: 1-301-715-8592. Public comments can be made by sending them to Laura Hurley, Council Administrator: lhurley@wicomicocounty.org. She will read them during the public comments section of the meeting. Wicomico County Budget County Executive, Bob Culver has proposed the following budget for FY 2021: $153.25 million in spending, against expected revenues of $145.25 million. Taxes will not be raised, county officials would rely on fees generated by enterprise funds—such as tourism and solid waste—and take $4 million from its reserves fund to secure a balanced spending plan. The tax rate is expected to be $0.9285 cents per every $100 of assessed value. City of Salisbury Budget Mayor Jake Day has proposed the following budget for FY 2021: $64.7 million spending plan which reflects approximately a 1.6% reduction from 2020. General fund revenue expects 66% to come from tax revenue, 7% from intergovernmental revenue—like state and federal grants—17% charges for service and 10% from other sources. Capital improvement spending is still on the docket for fiscal year 2021. Exploring Post-Pandemic Scenarios for Economic Growth and Employment Salisbury University and the Salisbury Area Chamber of Commerce held three webinars to discuss post-pandemic scenarios for economic growth and employment. Salisbury University economist Dr. Ying Wu, Dr. Leonard Aryl, Dr. Dustin Chambers, and Dr. Brian Hill presented scenarios on how the Lower Eastern Shore may recover from the pandemic. The construction scenario presented was that things will start getting better in the third quarter of 2020 with continued growth. They are looking at construction growing rapidly in 2021, but multi-family units will be preferred over single family homes. There will be repurposing of retail spaces into medical services, education, entertainment etc. Worcester County Administration Worcester County Government Office Building is closed to the public. Drop boxes are provided in the atrium of the Government Center where submittals can be made. Permits are still being reviewed. Inspections are still being made but in order to ensure protection of everyone the inspectors will do their inspections unaccompanied by the builder or property owner. Inspection results will be left in writing or if more detail is required beyond a short note they will follow-up with a call or email as soon as possible after returning to the office. All Board of Zoning Appeals and Planning Commission meetings have been postponed due to the Governor’s order banning gatherings of greater than 10 individuals. All staff in the Development Review and Permitting Department are still reporting to work. Worcester County Commissioners are holding meetings virtually and can be publicly viewed online via live stream feed at: https://media.swagit.com/zoom/worcestercountymd Coronavirus Consultant Worcester County Commissioners have hired Sergio Castillo, independent contractor, to assist county staff members in procuring more supplies such as personal protective equipment or other needed items. The county decided to hire a consultant to ensure they could purchase the medical supplies they needed when COVID-19 peaked on the Eastern Shore. Worcester County Budget The Worcester County Commissioners have proposed a real property tax rate of $0.845 per $100 of assessment for FY2021. This tax rate is 2.1% higher than the constant yield tax rate. A public hearing on the proposed real property tax rate increase will be held at 7:00 pm, on Tuesday, May 5, 2020 at the Worcester County Government Center, One West Market Street, Room 1103, Snow Hill, Maryland 21863. Due to the COVID-19 pandemic, the meeting will be held remotely via video teleconference. If you would like to speak at this public hearing you must register in advance at https://us02web.zoom.us/webinar/register/WN_R7VZcbCZRwqWickNDZKfVw. The meeting will also be streamed live on the County website at http://worcestercountymd.swagit.com/live. Town of Ocean City Budget Town of Ocean City is considering dropping the tax rate from $.4656 to $.4559 cents per $100 of assessed value. Three budget options have been prepared: Plan A would reduce property taxes, but otherwise would have no effect on the proposed budget. Plan B would reduce property taxes, as well, but would reduce expenses for capital improvement projects or postpone them all together in order to recuperate for potential losses. Plan C would keep the property tax rate at $4656 cents per $100 of assessed value. Town of Berlin Proposed Tax Rate Mayor Williams has proposed a property tax rate of $.83 per $100 of assessed value. A public hearing was held on March 23, 2020 for citizens to comment. Berlin saw an 18% tax hike last year. This rate would be a 4% hike. Dorchester County Administration Dorchester County Office Building is closed to the public. However, the public may enter the building by appointment after it has been verified they have not been exposed to the virus. They are still taking permits and doing inspections. However, their main permit technician is working at home via a county work station. Other staff coordinates with her on permits. Dorchester County Budget Due to COVID-19 Dorchester County Council is still revising their 2021 Financial Budget. The County Council has not met during the month of April. Somerset County Administration Somerset County Government Office Building is closed to the public. County staff is still working and processing applications, and performing inspections. Applicants are encouraged to call or email necessary information. Payments may be mailed in or collected at the door of building, along with any written materials that can’t be emailed. Somerset County Budget Due to COVID-19 Somerset County Commissioners is still revising their 2021 Financial Budget. The County Commissioners have not met during the month of April. Workforce Development Wor-Wic Community College is applying to the State of Maryland for an extension to the Eastern Shore Construction Alliance Earn-grant. The Maryland Building Industry Association-Eastern Shore has provided a letter of support to train students in core skills to support employment in the construction industry (copy of letter attached). The current carpentry class is on hold due to the COVID-19 pandemic. When the school reopens the class will have 5 classes to complete and graduation. APRIL 2020
Wicomico CountyAdministration
Wayne Strausburg, Wicomico County Director of Administration has announced his retirement. Strausburg’s retirement will be effective May 29, 2020. Weston Young, Assistant Director of Administration has also submitted his resignation. Young has accepted a similar position in Worcester County. In addition, the county does not have a council-approved Attorney, Finance Director or Human Resources Director in place. Also, Public Works Director Dallas Baker resigned last month. His post is currently being advertised. Baker had been leading three major projects in the county—reconstruction of the Morris Mill Dam, flooding alleviation affecting county roadways and neighborhoods, and development of a sewer-needs assessment report to address failing residential septic systems countywide. In addition, the County Executive is currently undergoing treatment for liver cancer. Due to these positions not being staffed, the County Council has voted multiple times to table routine spending transactions and requests. In addition, they have not been able to go to New York to secure bonds because they do not have a duly appointed County Attorney and duly appointed Finance Director. Wicomico typically borrows about $10 million every year to finance big-ticket construction or repair projects. City of Salisbury Liquor License Efforts to create a separate city licensing board has stopped with a compromise on how liquor licenses are awarded reached by Salisbury and Wicomico County leaders. Wicomico County Board of Licenses Commissioners will be expanded from three to five members, all of whom will be appointed by the governor. Three of the five will have to be city residents; both the city’s Mayor and County Executive will have to agree on which names are submitted to the governor. The bill introduced earlier in the current General Assembly session on behalf of the city will be amended to reflect these changes. Passed both the House and Senate. Changes will take effect in July once the Governor signs. SB 176 – Wicomico County – Landlord and Tenant –Repossession for Failure to Pay Rent Procedures Bill was referred to Environment and Transportation. A hearing was held on February 18, 2020. The bill failed to come out of committee. Worcester County Emergency Bill-Passed The Worcester County Commissioners introduced Emergency Bill 20-1 Zoning-Off Premise Parking. The bill would amend the provisions for off-premises parking in the CM Commercial Marine District to increase the allowable percentage of off-premises parking permitted. The Worcester County Commissioners unanimously passed the emergency legislation. The bill amends the zoning code to allow up to 90 percent of required parking to be off premises in the commercial marine district. Worcester County Rental License Program As of March 3, 2020 Worcester County has taken in more than $42,000 in rental license fees from the 116 rental license applications it has received. This number does not include the increased hotel room tax. The county expects to continue receiving applications through the spring. Worcester County Adopts New Building Code The Worcester County Commissioners adopted the 2018 International Building Code at their March 17, 2020 meeting despite refusing to adopt it at their March 3, 2020 meeting. They did so to maintain their local amendments. With their local amendments, the code applies to all residential structures over 500 square feet, building permits expire after one year and the builders can follow the local floodplain ordinance without the additional one-foot freeboard requirement. Berlin Short-Term Rentals The Berlin Town Council held a work session on March 9, 2020 at 6:00 pm to discuss a draft ordinance for short-term rentals. The following draft ordinance was presented. Short-term rentals would apply to rentals less than 28 days. They would be permitted in the R-1 and R-2 zones only in a homeowner’s permanent, principal or primary residence. They would be allowed in the R-3 and R-4 districts as well as in the business districts where dwellings are permitted as long as 24-hour contact information was on file. The draft ordinance also requires that bedrooms have at least 70 square feet of space per occupant and that properties being used for short-term rentals submit an initial application fee of $150 as well as a $200 annual license fee. Parking requirements are also being considered. A public hearing will be held for citizens to express their opinions. To date a hearing date has not been scheduled. Town of Berlin Proposed Tax Rate Mayor Williams has proposed a property tax rate of $.83 per $100 of assessed value. A public hearing was held on March 23, 2020 for citizens to comment. Berlin saw an 18% tax hike last year. This rate would be 4% hike. Dorchester County Dorchester County Council has begun work on their 2021 Financial Budget. Somerset County Somerset County Commissioners has begun work on their 2021 Financial Budget. MARCH 2020
Wicomico County Executive
Bob Culver, Wicomico County Executive has been diagnosed with liver cancer. Mr. Culver will begin treatment, but plans to keep working. The executive plans to provide updates as he learns more information about the severity of his condition and treatment options available. SB 176/HB 227 – Wicomico County – Landlord and Tenant – Repossession for Failure to Pay Rent Procedures The Wicomico County Delegation and Senators Eckardt and Carozza submitted legislation to provide for a more efficient eviction procedure for a landlord in Wicomico County to repossess property for failure to pay rent. The bill provides increased protections for consumers, reduces blight in neighborhoods, and frees up local law enforcement to tend to communities and residents. The proposed legislation provides the tenant 14 days’ notice prior to the eviction that they must remove their belongings from the property if their belongings are still in the rental on the day of eviction, the landlord and Sheriff’s Deputy simply change the locks on the residence and all items therein become property of the landlord. The bill has passed the Senate with amendments and is currently in the House Environment and Transportation committee. Worcester County Emergency Bill The Worcester County Commissioners introduced Emergency Bill 20-1 Zoning-Off Premise Parking. The bill would amend the provisions for off-premises parking in the CM Commercial Marine District to increase the allowable percentage of off-premises parking permitted. A hearing will be held on March 3, 2020 in Snow Hill at the Government Office Building. Worcester County Broadband Joanne Hovis, President of Columbia Telecommunications, presented the Commissioners with a rural broadband feasibility study. The study recommends that the county continue working with Choptank Electric Cooperative to secure broadband and conduct tests to determine the quality of service that Bloosurf, an existing wireless provider, is delivering to Worcester. The cost of the study would be $57,000. The Commissioners voted unanimously to accept the proposal. Ocean City EMS Service Ocean City Mayor Rick Meehan has requested an additional $395,089 in funding from the County to cover EMS service to West Ocean City which the town spent above what was budgeted. Mayor Meehan stated that a permanent funding source must be identified if the town is to continue to provide EMS services to West Ocean City. Commissioners felt this was a problem in all 10 fire districts and suggested they meet with the fire chiefs from all 10 fire districts in the County and then schedule a work session to consider funding options to resolve this issue. Berlin Short-Term Rentals The Berlin Town Council will hold a work session on March 9, 2020 at 6:00 pm to discuss an ordinance for short-term rentals. Town staff have spent the past several months researching short-term rental regulations in other communities and working toward drafting an ordinance. The work session is open to the public. Other Industry News JA Inspire Junior Achievement of the Eastern Shore will hold their JA Inspire event Thursday, February 26, 2020 at the Roland E. Powell Convention Center, Ocean City, MD. The event will provide hands-on-career exploration to almost 3,000 8th grade students. Participating in the event are Eastern Shore Colleges/Universities, Trade Schools, and Apprenticeship Programs. Also Eastern Shore Companies representing local high-wage/high-demand careers who will share career advice and engage students with interactive exhibits. FEBRUARY 2020
Wicomico County
Spike in Property Assessments Wicomico County has seen an increase of 21.7 percent in commercial property values. The jump in commercial property values is attributed to the sales of several large property sales including a car dealership, hotel, apartment complexes and an assisted living facility. Most of the sales of commercial properties were within city limits. Residential properties in the same area increased by11.2 percent. Drone Facility Salisbury-Wicomico Regional Airport held a ceremonial groundbreaking for a new drone facility. The 8,000 square foot hangar for the SBY UAS Center for Innovation has been under construction since November and is scheduled to open this summer. The county received a $100,000 Maryland Department of Commerce grant to help pay for the facility. The facility is expected to generate $11 million per year in revenue to the county and $1 million per year in state and local taxes. Once drone manufacturing begins, it will generate $495 million in revenue, $72 million in taxes and add 250 jobs. Currently two companies, Sentinel Robotic Solutions and Kilroy Aviation have temporary office space at the airport until the new facility opens. Worcester County Short-Term Rentals The Town of Berlin is drafting an ordinance to regulate short-term rentals in town. Consideration is being given to allowing short-term rentals in the R-1 residential district if the home is owner occupied. Consideration is also being given to commercially zoned areas as well as areas with R-3 zoning. The town’s planning department will bring back recommendations to the Berlin Planning Commission and the town council. Wind Farm The Maryland Public Service Commission held a hearing on January 18, 2010 at the Roland E. Powell Convention Center for the public to comment on the plans for two offshore wind projects. The Skipjack Wind Farm, led by Danish company Orsted, and the MarWin Wind Farm by Baltimore-based U.S. Wind, a subsidiary of the Italian renewable energy company Renexia. The commission called for the review after project developers updated their plans in fall 2019 with taller, more powerful turbines. About a thousand people attended the hearing and 100 people signed up to speak. Ocean City Mayor Rick Meehan told the commission that we support clean energy and the economic benefits associated with these projects, but would like to see the turbines moved further off-shore. No decision was made. The commission will accept written testimony until January 31, 2020. Workforce Development The Ocean City Chamber of Commerce has changed the criteria for their Chamber Foundation Scholarships from college to “Workforce” Scholarships. They will now award scholarships for continuing education classes and will include older students as well as school age students. This is an effort to encourage students to stay on the shore. WICOMICO COUNTY
Wicomico County Council Leadership 2020 Wicomico County Council has elected Larry Dodd, District 3 as Council President and John Cannon, At-Large as Vice President for 2020. Wicomico County Executive Forecasts Tax Hike County Executive Bob Culver suggested there would be a tax hike in 2020 to cover Maryland’s increased minimum wage to $15 per hour over five years will add millions of dollars to county government payroll costs. In addition, the Maryland General Assembly could impact county tax bills depending on the costs the state’s Commission on Innovation and Excellence in Education (Kirwan Commission) decides to pass on to the counties. Culver predicted 25 to 30 cents on the tax rate over the next 10 years. City of Salisbury Tax Differential The City of Salisbury is requesting a bill that changes the law to say Wicomico County shall provide a tax differential. A majority of the Wicomico County Council appears to be onboard with supporting the legislation. Lower Shore Economic Forecast The 32nd Annual Lower Shore Economic Forecast was held on Friday, December 6, 2019 at Salisbury University. Guest speakers included the Economic Directors for Worcester, Somerset, Dorchester, Wicomico, Sussex, DE, and Accomack, VA. Each Director reported that their counties had seen an increase in new businesses. Somerset County reported the opening of a new technical high school. Sussex County is starting to develop the western side of the county. Dr. Memo Diriker, Director, BEACON at Salisbury University gave a summary of housing. He reported that people are moving to multi-family homes instead of single family homes. The mid-west is slow in building homes and the younger generation is content to rent. He reported that the economy is good right now, but there are indications that a recession could start in 12-18 months. He suggested that individuals take a good look at their cash on hand. WORCESTER COUNTY Worcester County Commissioners Leadership 2020 Worcester County Commissioners have elected Joe Metrecic, District 7 as President and Theodore Elder, District 4 as Vice President for 2020. Standard Sewer Flow Calculations A public hearing was held to establish standard sewer flow calculations for determining required capacity to serve residential and non-residential land uses to be served by public sewer systems in Worcester County, Maryland. Per the Worcester County Commissioners request staff has revised the standard sewer flow calculations to include provisions which would allow an applicant to dispute the projected sewer flow and enter into an allocation agreement to monitor the flow for 24 months to determine the actual flow. If the applicant presents data which staff agrees supports a lower flow, the initial purchase of EDU’s will be based on the lower flow and may be adjusted at the completion of the 24 month period. However, even if staff does not agree with the applicant’s claim for a lower flow and requires purchase of EDU’s as determined by the Standard Sewer Flow Calculations, the applicant may still enter into an allocation agreement to determine the actual flow after the 24 month monitoring period. The Commissioners adopted Resolution 19-37, with the understanding that the Commissioners will review the success of the allocation agreement program after one year. DORCHESTER COUNTY Dorchester County Council Leadership 2020 Dorchester County Council have elected Jay Newcomb, District 1 as President and Libby Nagel, District 5 as Vice President for 2020. SOMERSET COUNTY Somerset County Commissioners Leadership 2020 Somerset County Commissioners have elected Craig Mathies, Sr., District 1 as President and Charles Laird, District 4 as Vice President for 2020. |