Drum Point Property Owners’ Association Board of Directors’ President Gary Heal

Lusby, MD – With a new fiscal year (FY) looming, the Calvert County Commissioners headed into their traditional July hiatus by conducting a public hearing and, on a split vote, making a decision. On Thursday evening, June 30, the issue was a proposed Special Tax District (STD) for the Lusby subdivision of Drum Point. The hearing was held at Southern Community Center.

In a memo to the commissioners, Calvert’s County Attorney John Norris stated that the Drum Point Property Owners’ Association (DPPOA) had submitted a petition to create a new STD. The association’s board of directors had requested a levy of $115 per lot, per year for FY 2017. The revenues, along with previous STD receipts that are held in reserve, will be used for road projects within the bayside subdivision. The county government collects the tax and the Department of Public Works reviews and approves all projects.

According to DPPOA Board President Gary Heal, the $115 levy is “about a 25 percent reduction. We feel the petition is well thought out.” Heal added that the board “has a history of spending wisely.”

In addition to the STD revenues, DPPOA charges a covenant road fee and a mandatory assessment, which varies depending on whether or not the lot is developed.

Most of the residents who spoke at the hearing expressed support for the STD.
“It’s an honest effort to do what’s right for our community, maintain our infrastructure,” said John Rovero. “We have a plan and we will execute it.”

Another resident, Curt Larson, called using the STD and other revenue streams to maintain the roads, “the best bang for the buck.”

“This [STD] is just one part of our budget,” said Peter Holt. “We have a fiduciary responsibility to run a good community.”

There was opposition voiced, including a call from a former DPPOA board president and treasurer to lower the proposed levy. In a statement submitted to the county commissioners prior to the hearing, resident Max Munger wrote the current association leadership “has retained earnings of over $400,000 from past years’ collections which are not budgeted.” Munger asked the commissioners to reduce the proposed STD “to less than $50, maybe even $25. This would be in line with past year’s total revenue.”

Another resident, Tricia Powell, said the STD “should be eliminated or brought down to $35.” In a letter to the commissioners dated June 23, Powell stated that “based on additional research, I have found numerous financial and management practices that are improper and insidious. Granting DPPOA the $115 STD will allow DPPOA to continue these practices.” In her written comments, Powell also stated “the proposed budget was prepared without public comment.”

Heal told the commissioners that the DPPOA Board currently has $171,000 in reserve from FY 2016 and most of that is likely to be used on a paving project the subdivision has planned for August. The expenditure would not leave much in reserve should Drum Point face an emergency.

The commissioners agreed a decision needed to be made on the STD request and Commissioners’ President Evan K. Slaughenhoupt Jr. [R – District 3] asked the board members to individually weigh in on the issue.

Commissioner Mike Hart [R – District 1], who grew up in the Lusby area, recalled what Drum Point used to be like before the property owners association began its initiative to upgrade roads. What he admitted was frustrating, however, was the perpetual aspect of collecting the annual fee. “I hate STDs with a passion,” said Hart. “I’m looking for an exit plan. I don’t want this going on for 20 years.” Having the STD in effect, however, does make Drum Point eligible for Federal Emergency Management Agency (FEMA) funds should a severe storm cause damage to the subdivision. Hart acknowledged that FEMA protection was needed and suggested perhaps making the STD levy a nominal amount—perhaps $1 per year—could keep Drum Point eligible.

In noting that all lots were subject to the tax, Commissioners’ Vice President Tom Hejl [R – At Large] suggested that maybe giving property owners with a lot that wouldn’t perc a tax break should be considered. Hejl eventually made the motion to approve the STD but added a provision that the DPPOA Board begin the process of crafting a “self-sufficiency” plan so that the special tax is no longer a necessity.

The motion was approved on a 3-to-2 vote. Commissioners Pat Nutter [R – District 2] and Steve Weems [R – At Large] voted opposed, both citing the 11th hour insertion of a self-sufficiency plan mandate as their reason for the no votes.

When asked after the meeting if the DPPOA Board could create such a plan, Heal told The BayNet “we’ll give it our best shot.” He added that the attorney for the association’s board of directors has indicated the three current mechanisms for generating revenues are really the community’s only legal options.

Contact Marty Madden at marty.madden@thebaynet.com