When you look at a map of Maryland, you will see many hundreds of place names, but, as of January 1, 2000, there are only 157 municipal governments among them, includ-ing Baltimore City. Municipalities exist in 21 of the 23 counties in Maryland; the exceptions are Baltimore and Howard Counties. Municipal populations, other than that of Baltimore, range in size between about 40 people and 50,000 people. More than 700,000 people, or approximately 15% of the state’s total population, live in incorporated cities and towns other than Baltimore. In fact, more people live in each of the five most populous cities (Rockville, Frederick, Gaithersburg, Bowie, and Hagerstown) than in one-third of the state’s counties. The median population of a municipality is about 1,300. Municipalities are typically the business, employment, educational, and cultural centers for their local areas or regions of the state.

The designation of the municipal corporation as a city, town, or village does not imply any difference in municipal power or authority; there is no classification, to date, of municipal governments in Maryland. Municipalities are recognized equally under state law regardless of population or wealth insofar as all of the powers conferred by Article XI-E of the Maryland State Constitution and Section 23A of the Annotated Code of Maryland are available to them through locally adopted charters. Each municipality decides for itself whether to take advantage of those powers by including or not including them in their municipal charters. Ultimately, these decisions are made by the citizens living within the municipal corporate boundaries and are based on need, desire, and willingness of citizens to pay for services.

As a result of this freedom to choose and the diversity of local circumstances, it is difficult to define a “typical” incorporated city or town. Population is not always an indicator of the number and level of services that are provided by Maryland cities and towns. Frequently, relatively small, rural municipal governments provide to their citizens a full range of services from water, sewer, and refuse collection to police, roads, and planning and zoning. Yet there are a number of larger cities, particularly in the Washington metropolitan area, that may provide fewer services, either because some services are provided by regional entities (such as the Maryland National Capital Park and Planning Commission and the Washington Suburban Sanitary Commission) or because, in exercising their home rule powers, the municipal governments have chosen not to provide certain services.

Even though municipalities operate autonomously from the county government, because of population size, adequacy of the municipal tax base to support a given service, or established practice, a municipality may rely on the county to provide a needed service such as police protection or water and sewer.

City and town residents pay both county and municipal property taxes, and municipal residents are entitled to receive the same county services that are provided to the citizens living in unincorporated areas. “Double taxation” for services may occur (1) when a county and a municipality within that county provide simi lar services financed with property tax revenues and (2) when the county does not provide those services within municipal boundaries because the municipality is already providing them. In such cases, municipal property owners are paying the county and the municipality for services that are only being provided by the municipality.

Over the years, legislation has been passed in attempts to remedy this situation. State law currently requires counties to meet and confer with the municipalities within their jurisdictions annually to determine whether double taxation exists. Approximately one-third of Maryland’s counties are required by law to provide tax relief to municipal residents. For the majority of the counties however, the law provides only that they may provide a property tax setoff if it is determined that double taxation exists. A property tax setoff compensates municipal taxpayers for double taxation by either levying a lower county tax rate for municipal property owners, known as a property tax differential, or, by granting a property tax rebate, returning to the municipality the portion of county taxes paid by municipal taxpayers for the duplicated service(s). The amount of the property tax setoff is based on a methodology—which varies by county—used to determine the cost of providing a service.

Since there is not a clear-cut way to measure and compare the costs of providing a service, the issue often becomes contentious for municipalities and counties. A municipality may frequently enhance a basic service provided by the county, particularly in the area of public safety. For example, the county government may provide limited police protection to all county residents, whereas residents in a city or town may desire or feel the need to have a fullservice police department. The cost difference between the county’s basic service and the municipality’s enhancement of the service may be difficult to determine. Also difficult to define is what constitutes basic service. It is arguable that the more densely populated municipalities require more to achieve the same level of service that is being provided to other areas of the county.

County and municipal governments are recognized as co-equal local government entities under Maryland state law, and each derives its authority directly from the state. Maryland’s 23 county governments are geographic as well as political subdivisions and operate in one of three ways: as a commissioner, charter, or code county. The extent to which each county may legislate on local matters is determined by the limitations set forth in the Maryland Constitution and state law for each of these forms of county government. The state requires that county governments generally provide for health, education, welfare, and jails and detention centers in the community. Counties provide traditional city services in many areas that are unincorporated. All cities and towns are charter governments and have been given home rule authority by the State of Maryland. Because of this, cities and towns have a good deal of governmental power, more autonomy for example than the non-charter counties in Maryland.

Baltimore City is in a category of its own. With a population of over half a million people, it is treated more as a county in most respects under state law. Baltimore City was originally established as a municipal corporation within Baltimore County. In 1851, the city separated itself from the county and since then has functioned as an independent unit of local government. When Article XIA of the Maryland Constitution was ratified by the voters in 1915, providing the opportunity for counties to adopt charter home rule, Baltimore City was also given the opportunity to adopt its own charter. It began exercising charter home rule in 1918.

The Baltimore City charter enumerates the powers of the city and defines its organizational and administrative structure. Uniquely, the city’s express powers, granted by the Maryland General Assembly, are not found in the Annotated Code of Maryland as is the case for Maryland’s other local governments. They are instead codified in Article II of the city’s charter and may only be amended by the General Assembly. Baltimore is jointly governed by the mayor and city council, and they share general powers that address safety, health, and welfare issues. Baltimore’s Board of Estimates, which is responsible for the annual city budget and the day-to-day operations of the city, is comprised of the mayor, comptroller, and the council president (the only officials elected city-wide) as well as the city solicitor and public works director.

On November 2, 1954, the voters of the State of Maryland ratified by referendum, Article XI-E of the Maryland Constitution providing municipal home rule to the incorporated cities and towns of Maryland. Approval of the amendment marked the first major change in the legal status of Maryland’s municipal governments since the first municipal charter was granted by the General Assembly in 1683.

Throughout most of Maryland’s history , the state legislature enabled each municipality on an individual basis to enact specific local laws, approved amendments to municipal charters, authorized municipal annexations, and approved the incorporation of new municipalities. Cities and towns had to depend upon the good graces of the General Assembly to grant to each of them the individual powers required to address even the most ordinary local issues, such as dealing with barking dogs or the placement of signs. No matter what the need was or the urgency of that need, a municipality could not take any action unless the state legislature had passed a law specifically granting it the authority to take the necessary action. There was no uniformity in how cities and towns were treated or what local authority they were provided. Municipal officials were limited to enforcing whatever local ordinances the General Assembly had specifically authorized for each city or town.

While home rule in Maryland means that all municipalities are potentially equal in terms of the powers that are available to them, there are two major exceptions: the City of Baltimore and most of the municipalities in the suburban Washington, D.C., area. Article XI of the Maryland State Constitution refers specifically to Baltimore City as do parts of other articles of statutory law.

Article 23A, Sec. 2 of the Annotated Code of Maryland prohibits most municipalities in Prince George’s and Montgomery Counties from passing “any ordinance which is inconsistent or in conflict with any ordinance, rule, or regulation passed, ordained, or adopted by the Maryland-National Capital Park and Planning Commission or the Washington Suburban Sanitary Commission.” The purpose of these restrictions is to prevent conflict with the responsibilities of these area-wide agencies, established by legislation passed by the Maryland General Assembly, in the provision of planning and zoning functions and water and sewer services.

In summary, the municipal home rule amendment made two fundamental changes in the state-local distribution of governmental powers. First, it granted municipalities the power to legislate on matters of local concern and government. Second, it restricted the power of the General Assembly to treat municipalities differently and to enact binding non-uniform laws affecting incorporated cities and towns. The Maryland legislature still retains ultimate power, but the home rule amendment places restraints on the manner in which the legislature exercises its ability to preempt local lawmaking.

Municipal powers and limitations are outlined in Article XI-E of the Maryland Constitution and in Article 23A of the Annotated Code of Maryland. Article 23A provides most, although not all, of the powers and limitations for municipalities in Maryland. Other sections of the Code contain laws affecting municipalities as well.

Municipal governments are also governed by federal and state court opinions and guided by non-binding opinions of Maryland’s Attorney General. The courts interpret state and federal law as it applies to municipalities, and, until the court changes a ruling or a ruling is overturned by a higher court or state legislative action, court decisions are respected as binding. This is especially true of the federal Supreme Court and the Maryland Court of Appeals.

Municipal governments must adopt a charter that outlines the specific powers or authorities it chooses to exercise. The municipal charter is like a constitution. Municipalities have home rule authority to amend their charters when it suits the desires and needs of local citizens by following the procedures established in the state Code, without seeking additional approval from the state legislature. Municipal charters reflect local circumstances, which is why no two charters are exactly identical. Amendments to the municipal charter have no effect until they are registered with the Maryland State Department of Legislative Reference.

In addition to charters, which outline the basic laws of local communities, municipalities enact resolutions, ordinances, and regulations. The following descriptions briefly explain the functions of each of these governing tools:

• Resolutions are actions by the legislative body that have no penalties; and are generally of a less permanent nature.
• Ordinances are local laws, which if violated may result in penalties; generally have some permanence; and are often compiled into volumes known as codes.
• Regulations are a subset of municipal law usually designed to implement an ordinance; are considered “administrative” in nature and usually go into more detail than ordinances; and may be delegated to a municipal employee such as a city manager or personnel director to develop and enforce.

The state requires that municipalities publish a cumulative supplement to their codes annually and that the supplement contain all ordinances that have been adopted or revised since the last revision of the code.

The principal elected officials in Maryland’s municipalities are the mayor or president and members of the council, commission or board. While no two municipal government structures are precisely alike, each falls into one of the four general structural categories common to all municipal governments in the United States. Most Maryland municipal governments, however, are hybrids of these structures. The structure of government for each city or town as well as the general responsibilities of elected officials and certain appointed officials are defined in the municipal charter. The charter also defines the roles of elected officials and whether they shall be called mayors, burgesses, presidents, aldermen, commissioners, councilmembers, or board members and provides the qualifications for each office.

The structure of government is also an indicator of how elected officials interact with each other and the appointed staff.

Four forms or structures of municipal government are generally practiced in the United States:

• Weak Mayor/Council—generally made up of five to nine council members; mayor is elected at-large; council is elected by districts or at-large; mayor serves as president/chairman and presides over the council; mayor votes as a member of council, in some cases only to break a tie; mayor has no veto power
• Strong Mayor/Council—generally five to nine council members; mayor is elected at-large; council is elected by districts or at-large; mayor is separate from the council; mayor is chief executive of the administrative branch; council serves as the legislative branch; mayor has veto power with council override requiring supermajority
• Commission—three to seven commissioners are elected at-large; commissioners select a president or chairman from among themselves; commissioners have both executive and legislative functions
• Council/Manager—generally made up of five to nine council members including the mayor; all elected at-large, sometimes council elects mayor from among its members; mayor serves as president or chairman presiding over the council meetings and serving as the ceremonial leader; council hires a professional manager to be the chief executive officer

For the most part, elected municipal officials in Maryland are volunteers. They receive minimal, if any, pay for carrying out the responsibilities of public office; however, a mayor who functions as the chief executive officer in a larger city may receive a more sustaining salary. The majority of elected officials have other full-time jobs or are retired from full-time jobs.

Maryland municipal government relies on citizen boards, commissions, and committees to advise and help implement municipal laws and policies established by the elected body. Members are appointed by the mayor and/or council depending on which form of government is being practiced. Generally, these also are nonpaying, volunteer positions.

• Commissions are formal, standing committees with structure, duties, and powers established by ordinance; often have administrative responsibility and may perform quasi-judicial functions. Examples include a Planning and Zoning Commission or Housing Commission.
• Boards are formal committees with structure, duties, and powers established by municipal ordinance; usually perform quasi-judicial or adjudicative functions such as licensing or regulation. Examples include a Board of Appeals or Personnel Appeal Board.
• Committees are advisory in nature and can be either a formal, permanent committee established by ordinance or resolution, or an ad hoc temporary committee created by the mayor and/or council. Examples include a Downtown Development Committee or Community Clean-Up Committee.

There are federal and state constitutional laws, as well as United States Supreme Court and Maryland State Court decisions, that address such issues as discrimination and voter qualifications that affect all governments. Maryland municipalities have more discretion in conducting their local elections than do the state and counties. The State Election Code, Article 33 in the Annotated Code of Maryland, regulates federal, state, and county elections but excludes municipalities, except Baltimore City, with some minor exceptions. Case law also acknowledges the right of cities and towns to conduct their elections autonomously.

The terms of office for municipal elected positions are determined individually by each city and town and are specified in the municipal charter. Terms vary from one to five years with two-year and four-year terms being the most common. A municipality may decide to have all terms of office expire at the same time or it may choose to have a staggered system, which helps to ensure some continuity of policy. Municipal elections are held during every month of the year in Maryland with the largest number of elections held in May. Municipalities also determine the time of year, day, hours, and locations for the election.

The mayor and/or council/commission (depending on their duties as described in the municipal charter) may appoint a board of election supervisors to conduct municipal elections; or the responsibility may be given to election judges or the municipal clerk.

With only a very few exceptions, cities and towns conduct nonpartisan elections. The political party affiliation of municipal elected officials has for the most part little or no relevancy to typical municipal issues and concerns.

Statewide, the largest portion of municipal revenues is derived from property taxes, which account for approximately one-third of all revenues for incorporated cities and towns. Service user fees and charges are the second leading municipal revenue source. Together these two revenues make up almost 60% of the monies collected by municipal governments. Other significant sources include income taxes, state-shared revenues, state and federal grants and, frequently, county aid. There is a great deal of diversity in the revenue makeup of each city and town.

Each year Maryland’s cities and towns (except for Baltimore, which has its own revenue structure) share tens of millions of dollars in revenues raised or administered by the state and returned to municipal governments. State-administered local revenues and state-shared revenues available to incorporated cities and towns include the following:

State-Administered Local Revenues

• Income Taxes provided to each municipality by the state based on the greater of either 0.37% of the state tax liability or 17% of the county income tax liability of residents within its boundaries. These payments are deducted from the county share of the local income tax and are paid quarterly by the state.
• Admissions & Amusements Tax is an optional municipal tax on revenue derived from entertainment and amusement activities within a city’s or town’s boundaries. It is collected by the state and returned to municipalities after deducting an amount of revenue sufficient to cover the state’s administrative costs.

State-Shared Revenues

• Highway User Revenues (HURs) is the largest source of state-shared funds. A formula based on road mileage and registered vehicles is used to apportion HURs among municipalities and counties. These revenues are special-purpose funds and may be used only for roads, sidewalks, and transportation projects.
• State Aid for Police Protection is a significant source of state-shared revenues for municipalities that provide police protection. The funds are primarily divided between a county and its municipalities on the basis of relative police expenditures for the immediately preceding year.
• Business License Fees (Traders’ Licenses) are general purpose funds collected by the state, all but a small portion of which is returned to cities and towns. These revenues arise from fees for licenses issued for pool tables, bowling alleys, vending machines, restaurants, peddlers, and other specified business activities.
• State Aid for Fire, Rescue and Ambulance Services is distributed by the state to counties. County distribution is then made to the municipalities, which expend more than $25,000 from municipal sources for fire protection. The funds may be used for non-personnel expenditures related to the provision of fire and rescue services.

Eligibility standards for each of the state-administered local revenues and state-shared revenues vary and require the filing of reports with appropriate state agencies.

Predicting state-shared revenues for incorporated areas is usually not difficult, since municipal officials may base estimates on prior year data and projections are made available by state agencies. For an unincorporated community considering incorporation, reliable estimates are more difficult to obtain. Still, by using budgets from existing cities or towns of similar population, size, tax base, and breadth of services, a rough estimate is possible.

The budget is the nerve center of a municipal government. It is the primary decision-making system with which officials allocate resources to achieve governmental priorities and objectives. The budgeting process sets the procedures for identifying revenue sources, estimates amounts of revenues available, allocates resources across departments and programs, and provides the basis for monitoring expenditures and assessing the efficiency of municipal services and programs. The municipal budgeting process provides for three primary government functions: budgeting as a control function; budgeting as a management tool; and budgeting as a planning tool.

The municipal charter stipulates how the budget is to be prepared and adopted. The vast majority of Maryland municipalities use some variation of the line-item budget format. A line-item budget allocates appropriations for each item or category of expense such as labor, contractual services, and office equipment/supplies. The line-item format usually groups items by department and programs within departments. The items provide a legal basis to expend funds for that purpose unless the budget is officially amended. Amendments to the budget can occur throughout the fiscal year by a vote of at least two-thirds of the legislative body.

In Maryland, municipal budgets must be adopted before July 1 and are usually completed in late May or early June. The exact adoption date will depend upon several factors such as the size and complexity of the budget and requirements dictated in the municipality’s charter.

Prior to 1954, each new municipality in Maryland was created solely through the passage of individual pieces of legislation enacted by the General Assembly. Ratification of the Municipal Home Rule Amendment in 1954 and subsequent changes to law in 1955, resulted in the General Assembly’s shifting of this authority to county government.

The incorporation law has been amended only three times since 1955. In 1988, legislation was enacted that clarified procedures a county must follow upon receipt of a valid incorporation petition. In 1990, legislation was enacted to remedy a court ruling that rendered the municipal incorporation law invalid by providing a voter-only petition option. This action was necessary as a result of a ruling by a federal appeals court nullifying Maryland’s incorporation law because of its unconstitutional property owner petitioning requirement. In 1998, legislation was enacted that altered the incorporation process to provide a framework for discussion and cooperation between an area seeking to incorporate and the county government.

The 1998 change in the law also addressed two primary concerns for county government regarding a loss of county revenues and jurisdictional authority should an incorporation take place. It provided county government with a transitional period to make fiscal adjustments, phasing in over three years the revenues which would be diverted from the county to a new municipality; and it restricted substantive changes to the current zoning in the newly incorporated area for a period of five years.

Historically, for the 150 years prior to 1954, on average, one new municipality was created each year. Sixty incorporated cities or towns were established in the 20th century. In the 41 years since municipal home rule became effective in Maryland, only six incorporation attempts have made it as far as the referendum phase, and all involved state-created special taxing districts (areas already treated as municipalities in terms of receiving state revenues) in Montgomery County. Five referenda were successful, creating new municipalities in Chevy Chase, Section 3 and Chevy Chase, Section 5 in 1982; Martin’s Additions in 1985; Chevy Chase View in 1993; and North Chevy Chase in 1995. A referendum to incorporate the Village of Friendship Heights failed in 1991.

The procedures for municipal incorporation are provided for in Article 23A of the Annotated Code of Maryland. The advantages and disadvantages of municipal incorporation are outlined on the accompanying chart.

What is best about living in a municipality? Perhaps most important is the fact that citizens residing in a city or town largely have control over their own destiny. Municipal government is often referred to as “grass roots government” because municipal citizens directly have the authority as well as accountability for making quality-of-life decisions for the community. Municipal citizens are elected by the community to hold public office, and citizens from the community are appointed to municipal boards, commissions, and committees. Municipal elected officials have the power to change their structure of government and amend the contents of their municipal charters when local needs or desires change.

City and town residents have direct access to their elected officials. They have the opportunity to communicate with them about a concern or issue when they see them on the street or at a community function. Ultimately, if citizens feel that their interests are not being adequately represented, they can vote their elected officials out of office at the next municipal election. It is not unheard of for just one vote to make a difference.

Johann Wofgang von Goethe (1749-1832), considered to be one of the most influential and versatile German figures of his day, was very involved in government, holding various public offices. He is quoted as saying,

What government is the best? That which teaches us to govern ourselves.

Indeed, this is what grass roots government is all about. In the next section, you will become acquainted with Maryland’s 157 incorporated cities and towns.