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Committee reviews $222.4M payments to municipalities NDA and a corrected formula error
Summary
Committee staff briefed members on a 3.35% increase to the Payments to Municipalities NDA (total $222,425,999), formula changes (including police overtime/training/hiring bonuses), and a corrected staff arithmetic error that raised the FY26 formula impact from $26,000 to $574,000; members supported forwarding the budget to full Council.
Staff presented the executive’s FY26 recommendation for the Payments to Municipalities NDA, which reflects a 3.35% increase and totals $222,425,999.
The NDA reimburses municipalities for the county’s property‑tax funded portion of services (as governed by County Code Section 30A). Staff reviewed recent formula changes adopted in expedited bill 2‑22 (03/01/2022) and noted that last year’s one‑time adjustments (for Gaithersburg, Rockville and Garrett Park) are now included in the base calculation. The police formula was updated to increase the number of officers used in the calculation for Gaithersburg (from 9 to 15) and Rockville (from 16 to 22), and staff said the FY26 calculation now accounts for police overtime, training costs, and hiring bonuses.
Council staff also flagged a correction: the staff report initially said the new police‑cost adjustment would add approximately $26,000 to the FY26 formula, but the correct figure is $574,000. In addition, there is a one‑time $66,321 payment to Takoma Park intended to correct a formula error in FY23 for crossing guards.
Council members praised negotiators and emphasized the importance of treating municipal police officers consistently with county officers when overtime and other costs are included. Staff noted the county police department will finish a quadrennial assessment in October that will inform future police staffing and FTE calculations used in the formula.
What’s next: The committee recommended forwarding the Payments to Municipalities NDA to full Council with the corrected numbers and noted that formula work will continue as the police assessment is completed.
