[{"_1":2,"_121":-5,"_122":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99,109],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6224638,"mediaKeyId","3549918-74949e6b60efb79984f23f78716bf994","parentId",3549918,"title","Hagerstown introduces FY26 budget, tax rate; staff warn electric fund faces multimillion-dollar shortfall","audioSeconds",2021,"startMs",1443000,"endMs",3464000,"viewUrl","/Search/View?dp=1&key=3549918-74949e6b60efb79984f23f78716bf994&start=1443&end=3464","thumbnailUrl","https://assets.pipeline.soar.com/3549918-74949e6b60efb79984f23f78716bf994/thumbnail_1443000.jpg","articleUrl","/articles/6224638/Hagerstown/Washington-County/Maryland/Hagerstown-introduces-FY26-budget-tax-rate-staff-warn-electric-fund-faces-multimillion-dollar-shortfall","mediaUrl","https://secure.pipeline.soar.com/6224638-08b74ad0912595cc2b98360b29874307/orig.mp4?Expires=1771222356&Signature=XTyCyIIUKAeZ-qLn34rVPbjqjq6doWpB5vyWmnpLro~I~sjsb9nB31bQuVmHwuSwb~PJ6bI0DJwPARQF1M9N4V1oAcHqDD0sUmeAH7pekq64ngPeQFO3-sgpEV9dxtnO2F5F209AFJXJtHWGbhDzfsdiJFhXddyuGxkW6UiTc8PiuhR16GJEkJqWbEIdLGD-F7NjXM~37~08to1IaK0hGLZp1-EX1-xhCA-03P2v9vBtOo-NDC0dgkG7oaIGN-yWej1gEjkNfi34xxLVa01yQeS54r4JqR1UyYw8UBy4gJ94vOueLetiED91QwWsXJED1WDRSD~V~AxH7sHnG5Md9Q__&Key-Pair-Id=KUT5TJCACFTXG","author","City of Hagerstown, MD","date","2025-05-28T16:17:07.633Z","article","HAGERSTOWN, Md. — The Hagerstown Mayor and City Council on May 20 introduced an ordinance to adopt the city’s fiscal 2026 budget and an ordinance to set the tax rate for fiscal 2026, while staff warned that self-supporting enterprise funds — especially the electric fund — face near-term cash pressure.

City finance staff delivered a detailed review of four enterprise funds — parking, electric, water and wastewater — saying those funds must be self-supporting and describing projected deficits, debt-service timing and capital needs that informed the proposed FY26 budget and tax-rate introduction. The council voted to introduce the budget ordinance and the tax-rate ordinance for formal adoption at a subsequent meeting.

Finance staff framed the enterprise funds as “business-type” accounts that should pay their own costs. On the parking fund, staff showed operating revenue of about $1.421 million and operating expense of roughly $943,000, producing a modest operating margin that becomes a cash deficit after accounting for depreciation, principal payments and capital outlay. In the cash projection the parking fund begins FY26 with roughly $1.1 million (staff noted they were trending at about $1.2 million at the time of the presentation) and is projected to end FY26 with about $786,000; longer-range projections show the fund drawing reserves and going negative in later years unless revenue or capital assumptions change.

The electric fund drew the council’s most urgent attention. Staff presented FY26 service charges of about $33.9 million and a purchase-power expense of about $26.6 million — roughly 78% of expected electric revenue — leaving 22% of revenue to cover staffing, distribution, maintenance and capital. Staff reported an expected operating retained–earnings loss for FY26 and a net cash impact of roughly $3.2 million; the city’s unrestricted electric cash balance was reported in the staff presentation as a negative $1.9 million as of the May 20 briefing. Staff said the city will use a year-end “cash advance” accounting mechanism (a temporary intra‑city cash advance reversed July 1) to meet fiscal‑year reporting rules but emphasized that the pattern is not sustainable for reinvestment in infrastructure.

Staff warned several drivers: recent storm repair and emergency contractor payments (staff estimated roughly $643,000 across city utilities for initial storm expenses, with about $476,000 attributable to public‑utility work); the timing of the first annual debt service payment for the new HUB parking deck, which begins in FY26; and an upcoming meter‑replacement shipment and other near‑term capital needs. Staff also noted that the city’s wholesale power supply contract expires Dec. 31, 2026, and that staff are seeking authority for the Director of Utilities to secure a wholesale power supply agreement when a market opportunity arises.

On water and wastewater, staff presented rate comparisons showing Hagerstown’s inside‑city water rate (for a typical household using 13,000 gallons per quarter) among the lowest in the comparison set (about $37.05 per quarter in the chart used by staff) and wastewater at about $117.86 per quarter. Staff said water and wastewater will require substantial capital investment over the coming decade (staff referenced a multi‑hundred‑million‑dollar planning horizon) and that some wholesale customers will shift service (staff noted roughly 1,400 joint‑service wastewater customers in the Mogansville area will move to county service in August, changing revenue and billing arrangements for those customers).

Formal council action at the special session: the council introduced an ordinance to set the city tax rates for fiscal year 2025–26 (proposed rate 1.057 per $100 of assessed value for real property; 2.643 per $100 for business personal property) and introduced an ordinance to adopt the FY26 budget in the amount of $222,997,300. Both introductions passed on voice votes recorded as 4–1. The council will consider final adoption at a subsequent public hearing and vote.

Staff separated discussion, direction and decision in the presentation: the review identified operating assumptions, projected capital needs and debt‑service timing (discussion); staff requested and received council authority to proceed with certain procurements and to pursue wholesale power agreements when market conditions are favorable (direction); and the council introduced the budget and tax‑rate ordinances (formal action).

Council members pressed staff on reserve levels, the timing of debt service and whether routine maintenance and capital replacements are included in projections. Staff said they will return with further suggestions for stabilizing enterprise funds, and noted the city has limited staffing in the electric utility (staff cited 29 full‑time positions across the electric utility) to respond to outages and capital work.

The staff presentation materials and comparative rate charts cited oversight by the Maryland Public Service Commission for municipal electric rate filings and described how wholesale purchase power contracts are competitively procured and then pass through to customers. Staff emphasized that purchase‑power variability is primarily a wholesale‑market dynamic while the city’s retail rates must also cover local distribution, staffing and capital.

The budget introduction and tax‑rate introduction will be published with supplemental worksheets that, staff said, will show specific line‑item reductions and transfers made to reach the proposed FY26 figures. The administration asked council to review those worksheets before the adoption vote.

What’s next: the council will hold the required public hearing and final adoption vote on the FY26 budget and on the tax rates at a future meeting. Staff will return with more detailed recommendations for enterprise‑fund rate design, capital timing and potential operational changes to limit cash deterioration in the electric and parking funds.

Sources: City budget presentation, FY26 enterprise fund projections and council actions from the May 20, 2025 work session and special session.","mediaType","Video","parentTitle","May 20, 2025 | Mayor & Council Meeting: Work Session","oneSentenceSummary","The Hagerstown Mayor and City Council on May 20 introduced the FY26 budget and a tax‑rate ordinance after a staff briefing that warned the electric enterprise fund faces a growing negative cash balance driven largely by wholesale power costs and recent storm repairs.","taxTitle","Hagerstown, Washington County, Maryland","taxId",4678,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6224628,"University System of Maryland Hagerstown proposes 5‑year lease at 60 W. Washington; city negotiates minor changes",480,6454000,6934000,"/Search/View?dp=1&key=3549918-74949e6b60efb79984f23f78716bf994&start=6454&end=6934","https://assets.pipeline.soar.com/3549918-74949e6b60efb79984f23f78716bf994/thumbnail_6454000.jpg","/articles/6224628/Hagerstown/Washington-County/Maryland/University-System-of-Maryland-Hagerstown-proposes-5year-lease-at-60-W-Washington-city-negotiates-minor-changes","https://secure.pipeline.soar.com/6224628-8564a5b0e228e073ed9b67fc0bd907a2/orig.mp4?Expires=1771222356&Signature=obGi~q4~LtRW6kQJg0FUT4vtuXfwtNfkRZvdAE-h1ccwWG3rxsooSVQ3dZGUD6tGAn5DQZqoY9UUp5vpbg3wFuYZVSHt0PPpw-vFRX~SHkwS-4Gsg6UbdSxCne9n7Dkl-3HfRdQfAnQ9bjezB-EjlhTAuNug8Ji-qj0FhAO729XzMPdfVBW~rTb9WwvYX8~nOJgOO~gM~SGMH4wt1m~s3AaVfR4nG~fpr7uvoPTPpgbYQnF0Vu~WcnvZO32xpTLrLmGnz95ydmSq37nJQABI7JEl~uLGokdYDx0msBzSYQi8Etcmg8CWNfKAYDHFtjvfmHfDs6T4LQrLcJ5zJektnQ__&Key-Pair-Id=KUT5TJCACFTXG","HAGERSTOWN, Md. — City staff presented a proposed five‑year lease with the University System of Maryland Hagerstown (USMH) for the building at 60 West Washington Street and recommended council approval following minor contract edits.

Staff said USMH currently occupies the rear portion of the building and that the proposed lease would cover the full building above the basement for a five‑year term. The lease contains a clause allowing USMH to present a proposal to purchase the property at any time during the lease term; staff emphasized the city may list the property for sale and accept or reject proposals under the city’s competitive negotiated sale process.

The lease also includes a provision to allow city Parks staff access to restrooms and a green room during city‑permitted events at University Plaza. Staff reported minor edits were added to meet state invoicing requirements (new lease sections 3.6 and 3.7) and that USMH requested an additional convenience termination right after two years; staff recommended approving those changes.

USMH told city staff it plans to use the building for the Hub program (a University System/Frostburg State workforce development and child‑care program). USMH requested occupancy beginning June 1 to prepare for a fall program start; staff said the tenant expects to be operational for the fall term.

Financially, staff reported the lease has a multi‑hundred‑thousand‑dollar value over five years (packet language described the total value as more than three‑quarters of a million dollars) and will provide revenue to the property‑management fund. If the council approves the lease, staff will include the updated lease language in the adoption packet for the next regular session agenda.

Sources: City memo and lease summary presented May 20, 2025.","City staff recommended a five‑year lease with University System of Maryland Hagerstown for 60 West Washington Street, subject to minor edits that protect the city’s flexibility to sell the building and to meet state invoicing requirements.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6224619,"Hagerstown identifies annexation reform, housing and sober‑home oversight as top priorities for Maryland Municipal League",1148,6916000,8064000,"/Search/View?dp=1&key=3549918-74949e6b60efb79984f23f78716bf994&start=6916&end=8064","https://assets.pipeline.soar.com/3549918-74949e6b60efb79984f23f78716bf994/thumbnail_6916000.jpg","/articles/6224619/Hagerstown/Washington-County/Maryland/Hagerstown-identifies-annexation-reform-housing-and-soberhome-oversight-as-top-priorities-for-Maryland-Municipal-League","https://secure.pipeline.soar.com/6224619-aa3c00d77288d6cd1c91c59a866e61e5/orig.mp4?Expires=1771222356&Signature=RKBK8FCtT4YRrqjYmCzNbIAaxMVLI~5RVh2eBOmJnUf~3tZfvspFFncz4AlIIMgJJAvXh-UxEUmHPFxzan8hAmvUzdXfaq~NbrmTaarHI8O7PEdxU--BvWWWKpz4w9usqBtggd2jm6LOCvPcOPPKhWhRduAyLcv6z4spd6-~DMxoiVQo9gy5tIe39y1K72eO43BIJTMPEUKS3rwfbNYeJQmC8i5-DCORZ3aRsbPASMVJgyIyP2SXQI11Jhx4Pjy7UxyntL~8GugNktkS6guNsEH2cT92Z6pFMMGPmnywEURKzmUZR0~Tlp5ZluqEfjrMu1AWyCDByqJ5AUnJni0lQw__&Key-Pair-Id=KUT5TJCACFTXG","HAGERSTOWN, Md. — During the May 20 work session the Hagerstown Mayor and City Council discussed and narrowed the municipality’s legislative priorities to present to the Maryland Municipal League (MML). Council members emphasized express annexation authority, housing affordability and related tenant‑barrier issues, and oversight of treatment or sober‑home facilities as key state‑level priorities.

Staff briefed the council on the MML process and timeline and noted that the city’s initial submission for MML priorities is limited to three items. Council members said restoring express annexation authority (repeal or modification of a state change in law that, in their view, constrained municipal annexation) should be the highest priority. Members argued that annexation reform would support municipal growth strategies, housing and economic development.

Council members also discussed housing affordability in multiple dimensions: increasing the supply of affordable housing, addressing tenant barriers to stable housing (for example, eviction records that hinder future renting), and supporting small businesses and storefront retention. Several members suggested packaging those related items so local, state and programmatic remedies could be pursued together.

The council also returned to earlier concerns about the operation and oversight of treatment or sober‑home facilities in the city, urging the administration to pursue legislative or regulatory remedies that ensure resident safety and program quality. Separately, members discussed body‑worn cameras for code‑enforcement officers and other non‑sworn personnel; some members said the issue merits follow‑up with state legislators because storage and data‑retention costs are significant and previous bill language left key choices to local discretion.

Staff said the immediate submission to MML will prioritize express annexation authority and that staff will work with the city’s delegation and MML to refine language and pursue additional priorities through the MML process and during the fall meetings with legislators.

Sources: Council discussion at the May 20, 2025 work session.","Hagerstown council members told staff on May 20 to pursue annexation reform as the city’s top priority to the Maryland Municipal League, and they added housing affordability and oversight of treatment/sober‑home facilities to a broader legislative agenda.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":79,"_45":103,"_47":104,"_49":82,"_51":105,"_53":106,"_55":56,"_57":58,"_59":107,"_61":62,"_63":64,"_65":108,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6224623,"City to amend RFPs for upper‑floor housing and strategic properties grants to include A/E fees; funding from Maryland Community Legacy",171,6625000,"/Search/View?dp=1&key=3549918-74949e6b60efb79984f23f78716bf994&start=6454&end=6625","/articles/6224623/Hagerstown/Washington-County/Maryland/City-to-amend-RFPs-for-upperfloor-housing-and-strategic-properties-grants-to-include-AE-fees-funding-from-Maryland-Community-Legacy","https://secure.pipeline.soar.com/6224623-4dcb1b6cd58a740c9aa2b32965690db3/orig.mp4?Expires=1771222356&Signature=hx7d9zHNksrQLbEPU9WOaCmrcSGeNZWy1Md445puhvpdJ763-3DK9UuA28FbBgeyZp2QDJPdhqMKLkEGk2klIK4itBfskdrerh4k4BO-FCxxHLPryq9b0bh3SCeVF1KEF8Oh4WZZ0IFydV4BIB~HxYhTwIUfbo4uPxL2-tcqRezf91jxEdq1TStrCkBBxnNjYGZ0JRV6KkpNrPtluajiY3Qh1JybTvcSyQbkxM6aqmhXdpLXcrGWPYKaWrCrPbQXihyqsQkI1tVl~pO8xL2M6y3XTcEQHIkekepajqI4oKS4Y1hNxFYz9mJmVa~4CL6CD78ZRKpTMoCibOxQhEcq-Q__&Key-Pair-Id=KUT5TJCACFTXG","HAGERSTOWN, Md. — City staff asked the Mayor and City Council on May 20 to approve amendments to two grant program guidelines so architectural and engineering (A/E) fees can be eligible costs for developers applying to Maryland Department of Housing and Community Development (DHCD) Community Legacy dollars.

Staff said the city has roughly $100,000 remaining in the upper‑floor market‑rate housing program fund and $200,000 in a strategic properties fund (both Community Legacy grants administered through DHCD). The upper‑floor program provides 1:1 matching funds to help developers rehabilitate upper‑story residential units above ground‑floor commercial spaces to increase downtown housing stock; the strategic properties program targets adaptive reuse of large vacant structures to raise property values and catalyze redevelopment.

Staff proposed adding A/E fees to the list of eligible project expenses, reasoning that front‑end design and engineering costs can be a barrier to larger, more complex redevelopment projects and that including those fees in eligible costs would attract more robust proposals. If council approves, staff said they will amend and re‑advertise the open RFP so additional applicants can submit proposals with A/E costs included.

Staff also noted DHCD has extended the Community Legacy grant timeline through February (staff said the state offered an extension), giving the city and potential applicants more time to prepare proposals.

Next steps: staff requested council approval of the redlined guideline changes at the regular session next week; upon council action, the RFP will be amended and reposted to accept proposals that include A/E fees as eligible costs.

Sources: City memo to council and staff presentation, May 20, 2025.","City staff recommended amending two DHCD Community Legacy grant program guidelines to allow architectural and engineering fees as eligible costs, enabling larger upper‑floor and strategic‑property rehabilitation proposals to compete for roughly $300,000 in remaining program funds.",{"_33":110,"_35":36,"_37":38,"_39":111,"_41":112,"_43":113,"_45":114,"_47":115,"_49":116,"_51":117,"_53":118,"_55":56,"_57":58,"_59":119,"_61":62,"_63":64,"_65":120,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6224634,"Hagerstown staff seek council adoption of Safe Streets action plan to qualify for federal funding by June 30",454,5508000,5962000,"/Search/View?dp=1&key=3549918-74949e6b60efb79984f23f78716bf994&start=5508&end=5962","https://assets.pipeline.soar.com/3549918-74949e6b60efb79984f23f78716bf994/thumbnail_5508000.jpg","/articles/6224634/Hagerstown/Washington-County/Maryland/Hagerstown-staff-seek-council-adoption-of-Safe-Streets-action-plan-to-qualify-for-federal-funding-by-June-30","https://secure.pipeline.soar.com/6224634-6a8f3f7c3588d05247994fd72c22d491/orig.mp4?Expires=1771222356&Signature=i9UWYHTdi0o-kHEvyA~GOsz8dgvxY7poKgNcrUp8osBlOAye4k7e-Fggpyyv0zs~y6QYgGEEZQl2CrhRD3cT9EY2CRGhI16f01gNaYcfBnPsI9iN8mkR6xlowoY2vSO-hosABdhJP8o7TgWan4KDw3bRFFJd3IlTEnntgx4HQV8DWhCt8rSdAALOfQuDast049NzHVwHgj4XUvvm8oqbI5olvFfP1~rF~P3WhMm0IPusuebKBsmP~p896XJmNNz1vbon27lpiQQVEYa01pM9BepaZ5wHIMpdPAzKBfcdgOy~z1PPFSSCvilbSGs1N7HPFYqMETMXMNae8D2MK59mpA__&Key-Pair-Id=KUT5TJCACFTXG","HAGERSTOWN, Md. — City staff presented a finalized Safe Streets for All safety action plan on May 20 and asked the Mayor and City Council to adopt it so the city can compete for federal implementation funds. Staff and the consultant team said public comments received during a 30‑day period were incorporated and that the adopted plan is a prerequisite for a major federal grant application due later in June.

Jim Bender, who presented the plan to council, said the consultant team opened a 30‑day public comment period after an April presentation and held a public meeting April 23; staff received roughly 10 formal comments and incorporated them into the final plan. Several commenters objected to specific countermeasures proposed in the draft — notably, proposals to convert Antietam Street to one‑way traffic and to install roundabouts at particular intersections. The presenter stressed that the plan is a “menu of options,” not an immediate commitment to every countermeasure: engineering study and further local deliberation would be required before any major change.

Staff noted the plan’s adoption is a federal grant requirement: an adopted Safe Streets action plan allows the city to submit grant applications for implementation funds under the federal infrastructure program. Staff said the minimum grant application amount is $2.5 million and cautioned that while the funding opportunity exists only for a limited period, the adopted plan will also strengthen other state and federal funding requests in the future.

Council members urged staff to prioritize targeted intersection fixes and smaller interventions that yield measurable safety improvements for constrained grant matches, rather than asking for broad corridor‑level investments that can dilute resources. Staff agreed that prioritization and partnership with state and county agencies will be necessary when projects cross jurisdictional boundaries.

Next steps: staff plan to place a resolution on the council’s regular session agenda to adopt the Safe Streets action plan and allow staff to apply for implementation grants before the June 30 application deadline. If awarded, implementation grants would require local matching funds; council members were advised that matching commitments and project selection would be presented to the council for approval before construction begins.

Sources: Safe Streets presentation and public comment summary from the May 20, 2025 council work session.","City transportation staff presented a final Safe Streets for All safety action plan May 20 and recommended the council adopt a resolution so Hagerstown can apply for federal implementation funding under the IIJA/SAFETEA framework; staff said public comments were incorporated and the application deadline requires an adopted plan before filing.","actionData","errors"]

Article not found

Hagerstown introduces FY26 budget, tax rate; staff warn electric fund faces multimillion-dollar shortfall

University System of Maryland Hagerstown proposes 5‑year lease at 60 W. Washington; city negotiates minor changes

Hagerstown identifies annexation reform, housing and sober‑home oversight as top priorities for Maryland Municipal League

City to amend RFPs for upper‑floor housing and strategic properties grants to include A/E fees; funding from Maryland Community Legacy

Hagerstown staff seek council adoption of Safe Streets action plan to qualify for federal funding by June 30