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Committee reviews $222.4 million Payments to Municipalities NDA, flags formula correction
Summary
The committee reviewed the Payments to Municipalities NDA (FY26 recommended $222,425,999), discussed changes to the police reimbursement formula (now including overtime, training, hiring bonuses) and council staff corrected a staff‑report arithmetic error on a line item from $26,000 to $574,000.
The Government Operations & Fiscal Policy Committee reviewed the County Executive’s recommended FY26 Payments to Municipalities NDA, which staff reported would total $222,425,999, a 3.35% increase.
Ms. Cummings explained the NDA offsets instances of property‑tax duplication for municipal services under Section 30A of the county code. The county’s 2022 formula change (Expedited Bill 2‑22) now bases some reimbursements on the county executive’s estimated cost to provide the service rather than purely on property tax calculations. That change has increased reimbursements in several municipalities and this year’s calculation also incorporates recent adjustments for Gaithersburg, Rockville and Garrett Park.
Council staff highlighted a technical correction to the staff report regarding the police formula: where the report listed a $26,000 addition for FY26, staff said the correct figure is $574,000. Staff also noted a onetime FY26 increase of $66,321 to Takoma Park for crossing‑guard costs to correct a FY23 formula error. Committee members asked for continued follow‑up as a quadrennial police staffing assessment due this October will further inform future formula calculations.
Next steps: the committee recommended advancing the NDA to the full council with the executive’s recommendation and asked staff to continue refining police‑staffing inputs for future calculations.
