County committee approves revised MOU with Gaithersburg to allocate $15.6 million in impact taxes to local transportation projects

The Montgomery County Transportation and Environment Committee on Oct. 16 approved a revised memorandum of understanding between Montgomery County and the City of Gaithersburg that updates a 2006 agreement on the use of development impact taxes and programs funds for a set of city and county transportation projects. The committee also approved an associated amendment to the county’s FY25–30 Capital Improvements Program and a supplemental appropriation to program city-eligible funds.

The MOU update reflects a remaining balance of $15,600,000 in impact tax revenues collected within the city as of June 2025. Under the agreement the city’s new Gaithersburg Transportation Improvements CIP will program $11,600,000 (reported in staff materials variously as $11,600,000 and $11,644,000) for eight identified shared-use path projects in Gaithersburg; the remaining $4,000,000 is reserved for county transit projects that serve the city. The MOU also establishes a 65/35 split for how future impact tax revenues collected within the city will be allocated between city projects and county projects within Gaithersburg, with future project lists to be set through the usual CIP and budget amendment processes.

Why it matters: development impact taxes collected…