As we enter the final year for Maryland’s implementation of its preparations for Base Realignment and Closure (BRAC), I applaud the progress made to date by all levels of government and by the private sector to prepare for the influx of thousands of new workers and residents to the state.

I am concerned, however, that much work still needs to be done, and that Maryland has not yet fulfilled the commitments made when promoting our state as a potential beneficiary of BRAC years ago.

By law, the movement of jobs directly associated with BRAC is to be completed by September 2011, and shortly thereafter the Governor’s Subcabinet on BRAC is expected to disband. But this will only be a milestone in the preparation for BRAC – it should not represent the end. More jobs will continue to come to Maryland for activities ancillary to BRAC over the years that follow, and the state needs to continue to focus on improving infrastructure beyond 2011.

The greatest needs that exist both now and in the future are for transportation infrastructure and higher education opportunities. Additionally, businesses and residents need easier access to the latest communications systems and information technologies – what I like to call the hidden infrastructure of the 21st century. Maryland is at the cusp of becoming the Silicon Valley of the east coast.

Harford County has largely fulfilled our obligations to improve and expand infrastructure for everything from parks and recreation facilities to public works projects. On the education front, we have built new public schools and improved existing schools, sometimes by forward funding projects without state assistance. We have worked to improve higher education by investing in Harford Community College and by creating new opportunities through partnerships with Towson University and other institutions. Our outreach efforts to new residents, workers, and employers have been highly successful, and we are pleased that 56 defense contractors have relocated to Harford County to date.

While the added jobs and residents represent a timely boost to Maryland’s economy, it could also lead to a strain on services, infrastructure, and most importantly, our citizens’ quality of life if we do not meet these obligations.

I urge Governor O’Malley, Lieutenant Governor Brown, and the Governor’s BRAC Subcabinet to finish the work that we have all committed to complete, and for the state to address the unmet infrastructure needs relating to transportation, higher education, and technology.

As part of our continuing effort to maintain an open and transparent government for the people of Harford County, we have implemented a new initiative titled “Ideas at Work”. The program is driven by Spigit, innovative software for the enterprise connecting employees, customers, and business partners for idea management and innovation discovery.   

Harford County is pleased to join the City of Manor, Texas as well as several Fortune 2000 companies in using Spigit to help reshape the way we do business, both internally and externally.  

Harford County is the first jurisdiction in the State of Maryland to utilize ideas management software to provide an opportunity for citizens to openly share ideas they feel could benefit both government and the community.  “Ideas at Work” allows the citizens of Harford County, as well as county employees, to come together to discuss ideas, and to connect those ideas with leaders in government and businesses.  

The true measure of any modern society is the ability to create an environment where knowledge is freely exchanged and innovation encouraged.  “Ideas at Work” is a program that seeks ways to gain efficiency and economy in government, explore new ideas and concepts and offers the opportunity for employees and the citizens we serve to help make Harford County a great place to live, work and play.  I encourage people to sign up and become part of this knowledge and ideas based virtual community.  To sign up, visit the Harford County Government website at ideas.harfordcountymd.gov.

Much has been said and written regarding Tax Increment Financing or TIF, over the past few weeks.  This is not a new proposal, but rather one that has worked in many other states for decades, but less than a dozen times here in Maryland.

Some of the more notable projects or initiatives involving TIF are Arundel Mills Mall, the National Business Park near Fort Meade and National Harbor in Prince George’s County among others.

The TIF proposal to support Beechtree Estates will use the incremental increase in property taxes a result of the development and improvements to pay bond payments.  Each year Harford County government will receive their current property taxes, plus the remaining property taxes after bond payments are made.

At no time during TIF does Harford County use the full faith and credit of government to secure and/or issue the bond.  Additionally, Harford County will in no way be required to make or guarantee payments related to the bond.  The developer, in this case, Clark Turner is responsible for making payments on the bond, using the land as collateral.

The developer is responsible for all hook-up fees and impact fees for the project, which is estimated at more than $22,000,000 over the life of the project.  Additionally, the projected total net fiscal impact to Harford County will be more than $106,000,000!

An Impact Analysis of the Beechtree Estates project indicated the project will support approximately 866 construction jobs immediately and as homes in the new community are occupied, residents will stimulate the local area economy as well through shopping, etc.

Once full build out of the project is reached, the initiative will generate approximately $410,000 per year in reoccurring Transfer and Recordation Taxes; $3,094,000 per year in reoccurring Piggy Back Taxes and approximately $3.1 million a year in reoccurring Property Taxes.  Thus Harford County government stands to benefit substantially from this project.

Why Beechtree Estates and why now?

The answer is quite simple ~ BRAC and location.  The final aspects of the full BRAC implementation at the Aberdeen Proving Ground (APG) means more people who will be coming to Harford County from New Jersey and other areas, will need good, affordable and quality homes within a short commute of the military base, supporting good planning and smart growth principles. The geographic location of Beechtree Estates is ideally situated between Aberdeen and Edgewood areas of APG, and the economic impact to the Rt. 40 area will help ensure that local businesses benefit by having Harford County residents nearby. 

The Beechtree Estates project is an ideal initiative that certainly meets the criteria or standard for a special taxing district.  The developer, not government, is paying through bonds for the construction of more than 700 single family homes that will help jump-start the local economy and especially the construction and trade industry.  By helping to create jobs and putting people to work, creates positive opportunities for the business community and helps to grow the county where proper planning designed growth to occur – within the development envelope.

The Beechtree Estates TIF actually protects the interests of county taxpayers.  Harford County government will be regulating a unique financing method by allowing the developer to receive bonds, at the developers own risk ~ not the taxpayers of Harford County.  The county will never be required to fund any portion of this project using money from taxpayers!

Soon Harford County will join several other counties in Maryland and numerous other states throughout the country in promoting economic development opportunities in a “win – win” scenario for both the county and private business.

Beechtree Project & TIF - In Focus:

• Immediate Construction Jobs Now at a time when Harford County is facing a record 8.4% Unemployment
• No Full Faith and Credit of the County and its current Taxpayers
• Opportunity for County to expand its tax base by keeping BRAC families in the county and supporting local businesses
• Continued positive economic impact of the project over the projected eight year build out
• Good Planning by locating homes near a major employment center, Smart Growth at its best.

We have recently completed the two public budget hearings on the FY 11 budget for Harford County.  More than 200 citizens took the time to attend the two hearings and more than 50 expressed their opinion regarding the budget and what is important to them.

The comments received ranged from support for Harford County Public Library, parks and recreation programs; environmental programs; the Harford County Sheriff’s Office; our teachers and support personnel of Harford County Public Schools and those who asked that taxes be cut and spending at all levels of government reduced.  To say the least, there were many competing interests for the precious resources provided by the citizens of Harford County.

Each of the ideas, recommendations and comments concerning proposals for the FY 11 budget had merit and each will be given careful consideration.  Unfortunately not everyone will be satisfied with the final decisions reached regarding budget priorities for the next fiscal year.

Our nation, state and county continue the slow recovery back to economic prosperity.  We have made progress in the past year, but we all have a long way to go.

Over the next several weeks, my staff and I will meet with all the agency and department heads of county government as we  come together to establish the proposed FY 11 budget which I will send to the Harford County Council by April 1 as required by the Charter.  There will be many difficult decisions and challenges awaiting us as we move forward.  However, I view these challenges as opportunities for Harford County Government to become even more streamlined, effective and efficient.

One thing is for certain, I have no plans to increase property taxes or raise any other taxes on the citizens of Harford County.  We are all suffering the strain of the current economic climate and increased taxation is not in anyone’s best interest.

Those who wish to express their recommendations for funding priorities in the FY 11 budget can write to me at CountyExecutiveOffice@harfordcountymd.gov.

In closing, if there is one thing I have learned as an elected official with more than 30 years of public service it is that hard work is the basis of every great achievement.  There is much to be done and I am confident our final budget will reflect the importance of maintaining the quality of life we enjoy, as well as a conservative fiscal approach to governing this great community we call our home.

In our continuing efforts to help facilitate a smooth transition for BRAC with our military partners at the Aberdeen Proving Ground, Harford County Government is working to help enhance the military housing at APG at no cost to county taxpayers. 

In 1996, Congress authorized the Residential Communities Initiatives Program (RCI) which allows for the privatization of military housing across the country.  Through a combination of private and public resources, the United States Army has been able to upgrade the quality of homes that it provides for service members.

RCI is a critical component of the Army’s effort to eliminate inadequate housing and make Army installations safe, attractive and modern places for service members and their families to live. To that extent, the Army has privatized 98% of its on post family housing the U.S. and the APG initiative is one of the last remaining sites to be addressed.

The firm chosen by the Department of Defense for the APG housing initiative is Picerne.  Picerne is not and will not be under contract with Harford County Government to build or modernize housing on the APG.  The Army and Picerne form a partnership in which the Army contributes the ground in the form of a lease and Picerne contributes its construction, development and management expertise.

Picerne takes on debt in the Capital Markets by leveraging the rental income stream, also known as Basic Allowance for Housing. The debt, combined with the Net Operating Income of the project, will be used for the construction and renovation of all homes during the six-year initial development period.  All income from the project is reinvested into the project.

Recently, Picerne partnered with the Army on six installations (Ft. Meade, Ft. Bragg, Ft. Polk, Ft. Rucker, Ft. Riley and Ft. Sill, serving as developer, property manager and general contractor.  In doing so it was recently recognized by the Association of Defense Communities for its efforts to improve housing for the warfighters.

Picerne, supported by the Aberdeen Proving Ground, has requested that Harford County designate the on-base redevelopment of family housing as a “Priority Development Area” and thus help facilitate the issuance of conduit taxable municipal bonds to finance the redevelopment.  This proposal does not require any taxing for financial support from the taxpayers of Harford County and it does not adversely affect Harford County in any way.

Harford County does benefit from the redevelopment of the Post, as nearly $68 million of the Picerne Project must be spent on local, small and disadvantaged businesses in our community.  The conduit bonds do not require the credit or taxing powers of Harford County or the State of Maryland and will only be backed by the credit of the military family housing project.

I have tried my best since 2005 to do all I can as County Executive to support our friends at the APG as we prepare for the challenges and opportunities that BRAC brings to our region.  Providing cost effective housing and attractive housing for military families that live on post here in Harford County is also in the best interest of the county. 

Therefore, Harford County Government supports the Picerne Project at APG and we look forward to helping to bring this initiative to fruition in the near future, once again at no cost to the taxpayers of Harford County.  This is our chance to truly help our men and women in uniform who protect our basic freedoms.

Harford County Code requires a comprehensive zoning review a minimum of every eight years. On August 11, 2009 County Council President Billy Boniface and I signed Harford County Bill 09-23.  The signing of this bill was the culmination of a 14 month process that began in May 2008 when the legislation to initiate the Comprehensive Zoning Review Process was approved.  

The Harford County Department of Planning and Zoning received 327 applications from land owners requesting zoning changes.  Each application was reviewed for consistency with Harford County’s goals regarding land use, growth management, resource protection, and economic development.  Coming on the heals of completing an 18 month process to rewrite the Zoning Code and Development Regulations,  this review of over 300 rezoning requests was completed with professionalism by the P&Z staff.  Harford County citizens can be assured that each and every application received a thorough analysis that examined the surrounding communities and considered future use and needs.  

The County Council President and Council members in turn carefully reviewed each recommendation they received from the Planning & Zoning Department and the Planning Advisory Board.  Each Council member was keenly engaged with community leaders and neighborhood representatives within their districts to ensure that citizens concerns were heard, communicated, and negotiated.  

The updated Zoning Code established Transfer of Development Rights program and there were several applications requesting RR zoning that were within areas designated for Rural Residential use in the 2004 Land Use Element Plan.  This is another tool that will help Harford County preserve farms and farmland.  

The overall review of the requested zoning changes included comments from citizens and advisory groups.  The Planning and Zoning staff and I met with officers from the Friends of Harford to discuss their review of all the requested zoning changes.  I cannot over emphasize how much I admire the work of the Friends and the volunteer time that they devote to this process.  

Planning and Zoning conducted four public input meetings.  The County Council conducted three public hearings.  And new technology was introduced this year on the County website that featured an interactive page that allowed citizens to view each application via GIS tracking and also provide comment.  

I am grateful for the hard work and dedication of the Planning and Zoning staff during this process.  I commend the County Council President for his role in managing this important land use issue.  And, I feel especially fortunate to be the Executive of a county whose citizens are involved, engaged, and always committed to keep Harford County a great place to live, work, and raise a family.

These have been challenging times for our economy and the affects have reached down to local government. 

As I worked to put together the budget for FY 10, I discovered an obvious and major decline in revenues.  Raising taxes was and will not be an option!  This meant that the expenditure or spending side of the budget was the place to find solutions.

The budget I  presented to the County Council is smaller than last year's budget by $75 million.  Half of that is a reduction in operating expenses and the other half is a reduction in capital projects.

The FY 10 budget contains no new programs, no new positions, no salary or cost-of-living adjustment and real reductions in each department that reports to the county executive.

We still face pressure from the State in picking up programs that previously were the responsibility of the State, as well as a reduction in the State funding formula.

This Blog is our first attempt to use this technology to provide citizens with a forum to communicate directly with the county executive on matters of importance to them.  Each week we will try to open a new topic for the public.

I hope you will use this tool to help us guide your county government in the direction you believe it should take.

Thank you.