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Committee approves updated MOU with Gaithersburg to direct impact tax funds
Summary
The Montgomery County Transportation and Environment Committee unanimously approved a revised memorandum of understanding with the City of Gaithersburg that programs $15.6 million in development impact taxes collected within the city, directing $11.6 million to city projects and reserving $4 million for county projects serving Gaithersburg.
The Transportation and Environment Committee on Oct. 16 voted unanimously to approve 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.
Council staff told the committee the MOU updates the prior agreement and "defers the identification of the list of projects on which this revenue can be spent to the CIP," allowing eligible projects to be set through the county's regular budget and CIP amendment process. Chair opened the meeting noting there were two items on the agenda and that the MOU would be taken up first.
District 3 Councilmember and former Gaithersburg mayor Sydney A. Katz praised negotiators from both entities, calling the result the culmination of lengthy negotiations and saying residents in both the city and county will benefit. City Manager Tanisha Bridal, who introduced herself during the discussion, described the arrangement as fair and a good direction for the future.
Director Conklin of Montgomery County said the agreement resolves long-standing conflicts over how impact tax dollars are validated and assigned, adding that the arrangement aligns county transit investments and city street/pedestrian investments in a way that provides flexibility without repeated renegotiation. The committee recorded the approval as unanimous and moved on to a related CIP amendment and appropriation.
