Hearing Planned on Bill to Ban Double Payments to Developers

The Montgomery County Council plans a public hearing for Tuesday to discuss a bill that would ban what some council members say are overpayments to developers.

Bill 2311 would forbid any development district from receiving payments for a project from more than one government agency. It also would forbid the development district from imposing a tax that gets credited to another agency.

The bill, introduced by Councilman Marc Elrich (D-At Large), would halt a fundraising procedure used by developers of a west Germantown subdivision.

They are accused of collecting more than $6 million in payments for a pumping station and water main project that cost them $3 million.

The county council’s investigation earlier this year following discovery of what appeared to be double payments prompted excuses about misunderstandings of finance regulations.

County Finance Director Jennifer Barrett told the council the payment system combined Washington Suburban Sanitary Commission credits with payments from the county to pay for the project. The payment system has been used for more than a decade.

Barrett said the financing system was not the same as double payments.

A Washington Suburban Sanitary Commission spokesman repeated the commission’s claim of innocence in a statement to Germantown Patch.

“All along we informed Montgomery County about what we were required to do under state law, and when we were going to do it,” he said.

The corrective action that might have been needed already has been done, he said.

“In 2004 we tightened our policies regarding System Development Credits within the confines of state law,” the Washington Suburban Sanitary Commission spokesman said.

Elrich, who has sharply criticized the financing system, disagrees the problems are resolved. His Bill 2311 seeks to clarify the regulations on funding projects.

“That’s what they’ve been talking about, having legislation to make it clear so that this does not happen again,” said Neil Greenberger, county council spokesman.

After the public hearing Tuesday, the bill is scheduled for further discussion and possible revisions at a July 18 meeting of the council’s government operations and fiscal policy committee.

Afterwards, it could go to the county council for a vote.