Calvert Cuts Lot Tax in Drum Point Subdivision

Officials, Owners At Odds on Spending

The Calvert County Board of Commissioners voted Tuesday to reduce the annual tax on lots in the Drum Point subdivision, but the board must reach an agreement with the property owners association about how the money should be spent.

The Drum Point Property Owners Association had asked the county to approve a tax of $125 per lot. But faced with criticism from residents about its $250,000 reserve fund, which some considered excessive, the association agreed to lower the tax to $50, said Max Munger, president of the association. Since 2004, the rate had been $192.

The association, which has 1,350 property owners for its nearly 1,600 lots, also came under fire for its plans to use the money for amenities, such as beach improvements, instead of infrastructure.

By law, county commissioners must authorize special tax districts such as Drum Point and approve the special per-lot tax rate. Only one other community in Calvert, Chesapeake Ranch Estates, has a similar tax district.

The county is holding $500,000 in previously collected lot taxes for Drum Point and expects to collect about $200,000 more this year, said Terry L. Shannon, acting county administrator. Shannon said that the county collects the funds along with the regular county property taxes and invests them.

The association must submit receipts to the county to be reimbursed for its expenses.

"We review what they have submitted to make sure everything is in agreement with what was adopted in the budget," Shannon said.

Commissioner Gerald W. Clark (R-Lusby) made the motion to continue the tax district for Drum Point for the next three years. The county will try to reach an agreement in the next two months with the association about where the revenue can be spent.

Clark also asked county employees to research what is a "reasonable amount" for a property owners association to maintain in its reserve fund.

"Building up a huge reserve is not an appropriate way to spend tax dollars," said Commissioner Susan Shaw (R-Huntingtown), who said she would favor reducing the tax if the money in the association's reserve fund builds up excessively in the next three years.

Munger said that the reserve fund was meant to be used only for infrastructure emergencies and was never "a slush fund."

The organization had planned to use the special tax district money for street lights, beach replenishment and other capital projects, Munger said. "We believe the amenities are essential to the health of our community."

But some community residents expressed opposition to the spending plan during public meetings and hearings.

Carolyn Ebel, who has lived in Drum Point for nine years, said she thinks the association should be spending the special tax district money on roads and stormwater facilities. Ebel said she would like for the county to take "a very strong stand on limiting the use of these funds."

Fran Borsh, 65, a seven-year Drum Point resident, praised the commissioners, saying: "I think what happened today was very constructive and positive for the community. It also is a great example of the county listening to its constituents."