Anne Arundel Council advances SCBD transparency reforms; approves $190,000 Indian Hills loan

Council Member Rodbian on Monday opened a work-session discussion of bill 32-25, a proposal to update Anne Arundel County'administered special community benefit districts (SCBDs), and described changes intended to increase transparency and make the county'administered program cost-neutral.

Rodbian said the county has not updated the SCBD administrative fee structure since 1998 and that the program currently collects far less than it costs the county to administer. "The county auditor spends approximately $34,000 every year, administering SCBDs," Rodbian said in the session, and "the executive branch departments spend collectively, about $250,000." She added the fee schedule currently brings in roughly $125,000 while the county'side cost is about $285,000, creating a shortfall covered by general county funds.

The bill would raise the per-district administrative cap (currently $2,000) and rework the percentage calculation used to allocate administration costs across SCBDs; Rodbian said the draft raises the cap as high as $10,000 but that she expects to propose a phased increase to avoid sudden impacts on small districts. The draft also would require SCBD officers who administer district funds to provide an email address and aim to respond to resident inquiries within five business days, a provision Rodbian described as "aspirational." She told colleagues the measure would incorporate significant portions of the Maryland Homeowners Association Act and the Maryland Open Meetings Act for SCBD boards, and would preserve enforcement tools already in the county program to address noncompliance, including rejecting budgets, withholding disbursements, prohibiting expenditures, and reclaiming funds that were improperly spent.

Deputy County Attorney Lori Blair Klassner said dissolution would be an "extreme remedy" for persistent noncompliance and that the county currently has at least one community several years out of compliance that staff is trying to bring back into conformity with state filing requirements.

Budget Officer Chris Trumbauer told the council staff could provide district-by-district disbursement data ahead of the public hearing; Rodbian and Trumbauer both said the administration had produced last-minute cost estimates to support the update.

Separately, the council considered bill 27-25, an ordinance approving a multi-year loan and assignment agreement submitted at the request of the Indian Hills Community Association, the SCBD that administers the Indian Hills district. Administration staff said the loan from First Citizens Bank is for $190,000 and will be repaid with the special taxes assessed to property owners in the district to fund improvements to a community-owned playground. The council adopted bill 27-25 in a roll-call vote: Miss Ledbetter, Mister Smith, Miss Pickard, Mister Volkke, Miss Spiedler, Miss Radvian and Miss Hummer voted aye; none voted no. "Bill number 27-25 has passed," the secretary announced.

The SCBD update remains a work session item; Rodbian said she will bring a public hearing and potential amendments back at the May 19 legislative session and that she is open to adjusting the proposed fee timeline to ease the transition for smaller districts.

Why it matters: SCBDs allow neighborhoods to ask the county to collect assessments and spend them on localized amenities. The county-run collection mechanism shifts collection costs to the county unless the administrative charge covers those costs; Rodbian and budget staff argued the proposed change would prevent general taxpayers from subsidizing services used only by SCBD residents.

Planning follow-up: Staff agreed to provide a district-level breakdown of typical disbursements and to publish the crosswalk of state law provisions the bill references before the public hearing on May 19.