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Committee raises LPA trigger to $1 million and shifts test to operating profit
Summary
The joint committee approved amendments replacing 'ongoing revenue' with 'operating profit' and increasing the proprietary-interest threshold from $100,000 to $1,000,000 annually, aiming to align Montgomery County's test with neighboring jurisdictions.
Councilmember Friedson introduced an amendment that would change the statutory test used to decide when the county's proprietary interest triggers an LPA requirement and increase the monetary threshold that triggers review.
"Change the term ongoing revenue and replace it with operating profit based on the financial performance of the project," Friedson told colleagues, and proposed also raising the present-value trigger from $100,000 to $1,000,000 annually. The committee adopted the package of amendments unanimously.
Supporters said the higher threshold and profit-based metric align Montgomery County with other jurisdictions and better capture the county’s financial exposure. Staff and several members said they would solicit additional fiscal-impact analysis and jurisdictional examples before the bill goes to the full council.
