Nearly $4 million for public amenities like parks, trails and tennis courts are at risk of going unspent in Fairfax County because of bungled record keeping at the Department of Public Works and Environmental Services. More than 160 “proffer” payments from land developers — money for public amenities in exchange for development perks, like increased density — appear to have ended up in the wrong account, according to a report by the county auditor.
About $3.6 million wound up in construction escrow accounts, where it sits unused. Escrow dollars are paid to the county by developers for future specific construction needs — a wider road, for example, when more homes spring up.
The county has a balance of more than $7 million in unused escrow funds — some dating before 1998.
“This is awful,” said Michael Hershman, a citizen member of the county’s audit committee. “This is not an especially academic comment, but it sounds dumb to me that we have this money that no one can use.”
Sully District, in the far western portion of the county, has suffered the most lost opportunities, 24 misplaced projects valued at just over $1 million. Lee District is next with 17 lost projects valued at just over $600,000.
Auditor Michael Longhi pointed out that because of state legislation, the unspent, missing proffers are at risk of disappearing altogether if they’re not moved to the correct account and quickly put to use. Virginia in 2005 began requiring all proffers be committed to a project within seven years of payment, meaning that 2005 proffers unused by July 2012 are at risk of being forfeited to the state.
Longhi said he would follow up with the erring department to ensure they get their finances in order and set up better systems for future payments.
“Let’s get the escrow money where it belongs, and let’s get the proffer out of the escrow,” he said.
