The Hillsmere Shores Improvement Association collects two fees from Hillsmere Shores property owners and residents: a Special Community Benefit District (SCBD) tax and a voluntary HSIA membership fee.
Hillsmere Shores (aka Hillsmere Estates) is granted and recognized by Anne Arundel County as a Special Community Benefit District (SCBD). This means that:
· HSIA can request the County to levy a tax on Hillsmere Shores residents for spending on activities, improvements, maintenance, security, etc. that benefit the entire community.
·
County law regulates what the money raised from the
SCBD tax can be spent on.
· SCBD tax money can not be spent on items that benefit only part of the community. For example, no Special Tax monies can be spent for Piers and Harbor boat slips or boat ramps or to build canoe racks or dingy racks.
· HSIA does not levy the tax. HSIA is not empowered by the residents of Hillsmere Shores to levy a tax. If HSIA was a true Homeowners Association, it could do that.
· Anne Arundel County levies the tax. Once HSIA requests the County to impose the tax, the County can change the amount or not levy the tax at all.
·
The tax is levied per property unless for some reason, the property is tax exempt.
·
The tax is mandatory.
·
The tax is paid by the property owners at the time they pay their normal
property tax.
The tax levied for 2005FY
was $124,048.
The largest 2005FY
recurring costs for SCBD Tax monies are
·
Security $37,000
· Loan repayments $30,000 (10 year loan for the new sandspit bulkhead)
· SeaBreeze $20,527
·
Maintenance
$18,565
· Administration $16,923 (includes$4000 for an outside auditor mandated by the County and $2000 County fee they charge us to collect the Special Tax monies)
These listed expenses
total $123,015 of the total $124,048 tax levied.
The remainder of the tax after these expenses is $1,033.
For 2004FY and 2005FY improvements made were paid for by
spending down the previous surplus.
Hillsmere Shores Historical SCBD tax rates
|
Financial Year |
Rate per property |
Total Tax |
|
2000FY: |
$84 |
$105,000 |
|
2001FY: |
$60 |
$75,000 |
|
2002FY: |
$69 |
$88,000 |
|
2004FY: |
$76 |
$94,354 |
|
2005FY: |
$100 |
$124,048 |
|
2006FY: |
$140 |
$173,810 |
In 2004 and 2005 the
two biggest SCBD tax projects were
·
Bulk heading of
the sandspit
o A loan was taken out by HSIA for $300,000 to pay for the work.
o $212,000 of the loan was assigned to Special Tax because the sandspit benefits everyone in the Community
o $88,000 was assigned to Piers & Harbors to pay out of their fees
· Roughly $45,000 for replacement of Beach playground equipment and the grounds work under the equipment.
The Beach improvement project was really paid from surpluses. The previous surplus also has been used for paying for the legal fees (roughly $12,000) to represent Hillsmere Shores in fighting an adverse possession of the beach strip along E. Bay View (between the marina and the community beach) by 3 homeowners. FYI, the 2005 expansion of the marina by 26 slips was entirely self-financed by the new 26 slip holders.
For 2006FY (which
begins July 1, 2005), as of January 2005 when the budget was set, there was no projected
surplus from previous years.
HSIA increased the rate requested to raise an additional $45,000 to repair the bulkhead at the Community Beach which is developing many holes in it. This was discussed at the November General Meeting with Community residents and they voted almost unanimously that we increase the rate to do this.
HSIA membership
fee:
The fee is used to pay for community social events and for a portion of HSIA administrative costs (including Hillsmere stickers, HSIA website, committee expenses, etc.).
HSIA Contact
Information If you wish to get more fee information, please submit your question
to our HSIA Administrator via our website (www.hillsmereshores.net ) or through
the HSIA phone at (410)263-4456. 7/6/2005