1540

LAWS OF MARYLAND

Ch. 498

(5)  INSTALLATION OF UTILITIES, CONSTRUCTION OF
PARKS AND PLAYGROUNDS, AND OTHER NECESSARY IMPROVEMENTS
INCLUDING STREETS, ROADS, PARKING, LIGHTING, AND OTHER
FACILITIES;

(6)  CONSTRUCTION OR REHABILITATION OF BUILDINGS
PROVIDED THAT SUCH BUILDINGS ARE TO BE DEVOTED TO A
GOVERNMENTAL USE OR PURPOSE;

(7)  RESERVES OR CAPITALIZED INTEREST;

(8)  NECESSARY COSTS OF ISSUING BONDS;

(9)  PAYMENT OF THE PRINCIPAL AND INTEREST ON
LOANS, MONEY ADVANCED, OR INDEBTEDNESS INCURRED BY A COUNTY
OR MUNICIPALITY, FOR ANY OF THE PURPOSES SET OUT IN §
266-II-5(1) THROUGH (9).

266-II-6.

BEFORE ISSUING THESE BONDS, THE GOVERNING BODY MUST OF
THE ISSUER SHALL:

(1)  DESIGNATE BY ORDINANCE OR RESOLUTION A
CONTIGUOUS AREA WITHIN ITS JURISDICTION AS A "DEVELOPMENT
DISTRICT". IF THE GOVERNING BODY OF A COUNTY DESIGNATES AN
AREA WHICH IS WHOLLY OR PARTLY WITHIN THE CORPORATE LIMITS
OF A MUNICIPALITY, AN ORDINANCE OR RESOLUTION OF THE
GOVERNING BODY OF THE MUNICIPALITY, APPROVING THE DISTRICT,
IS ALSO REQUIRED TO ESTABLISH THE DISTRICT. ALL ASSESSED
VALUES SHALL BE DETERMINED AS OF JANUARY 1 OF THAT YEAR
PRECEDING THE EFFECTIVE DATE OF THE ORDINANCE OR RESOLUTION
ADOPTED PURSUANT TO THIS SUBSECTION.

(2)  RECEIVE FROM THE SUPERVISOR OF ASSESSMENTS A
CERTIFICATION OF ASSESSED VALUATION OF TAXABLE REAL PROPERTY
WITHIN THE DEVELOPMENT DISTRICT AS OF JANUARY 1 OF THAT YEAR
PRECEDING THE EFFECTIVE DATE OF THE ORDINANCE OR RESOLUTION
ADOPTED PURSUANT TO THIS SUBSECTION. THE TOTAL SUM OF THE
ASSESSED VALUATION OF PROPERTY WITHIN THE DEVELOPMENT
DISTRICT SHALL BE REFERRED TO AS THE "ORIGINAL TAXABLE
VALUE". IN SUBSEQUENT YEARS, THE AMOUNT BY WHICH THE TOTAL
SUM OF THE ASSESSED VALUATION OF THE REAL PROPERTY WITHIN
THE DEVELOPMENT DISTRICT EXCEEDS THE "ORIGINAL TAXABLE
VALUE" SHALL BE REFERRED TO AS THE "TAX INCREMENT".

(3)  PLEDGE THAT UNTIL THE BONDS HAVE BEEN FULLY
PAID, THE PROPERTY TAXES ON REAL PROPERTY WITHIN THE
DEVELOPMENT DISTRICT SHALL BE DIVIDED AS FOLLOWS:

(I) THAT PORTION OF THE TAXES WHICH WOULD
BE PRODUCED BY THE RATE AT WHICH TAXES LEVIED EACH YEAR BY
OR FOR A MUNICIPALITY OR COUNTY UPON THE ORIGINAL TAXABLE
VALUE SHALL BE ALLOCATED TO AND WHEN COLLECTED PAID INTO THE
FUNDS OF THE RESPECTIVE TAXING BODIES IN THE SAME MANNER AS
TAXES BY OR FOR THE TAXING BODIES ON ALL OTHER PROPERTY ARE
PAID.