Frostburg council approves FY26 budget on first reading; opts for $1.70 service‑line protection fee

The City of Frostburg on April 15 approved the fiscal year 2026 operating budget on first reading and moved forward with an ordinance to replace the city’s leak adjustment policy with a third‑party service‑line protection program billed at $1.70 per month for single‑family households unless customers opt out.

Finance Director Mrs. Jones presented the budget and told the council, “We have prepared this budget with the best information that's currently available to us.” The ordinance for the service‑line protection (Ordinance 2025‑02) was presented the same night and approved for first reading; a separate ordinance will finalize the program’s eligibility and administration at a future hearing.

Why it matters: The budget frames city operations for the year starting July 1 and sets fees that appear on monthly utility bills. The proposed service‑line protection would replace the city's existing leak adjustment policy for eligible single‑family residences and create a paid, opt‑out coverage that the municipality says is more generous than the current policy.

Key details - Budget totals: approximately $17,600,000 in total revenues and $17,400,000 in total expenses citywide. The ordinance presented is Ordinance 2025‑01 and was approved on first reading; the public hearing is set for May 20, 2025. - Taxes: The council is maintaining the current real‑estate tax rate at $0.70 per $100 of assessed value for a fifth consecutive year. - ARPA: Remaining American Rescue Plan Act (ARPA) project funding of $816,000 is allocated for a plow truck, a street sweeper, roundabout design, and part of CSO phase 10a; passing the budget completes the planned use of the city’s $8.3 million ARPA allocation. - Proprietary funds and fees: Water fund expenses ~ $1,800,000; sewer fund expenses ~ $4,800,000 (about $2,700,000 of that is for five CSO projects); garbage fund expenses ~ $490,000. The garbage rate on utility bills is proposed to increase by $2 per month per unit to cover increased landfill tipping fees. - Service‑line protection: A $1.70 monthly fee per single‑family household will be automatically included beginning in July unless customers opt out; customers who opt out will forfeit access to the city’s former leak adjustment policy. Multi‑unit and commercial customers remain under the existing leak adjustment policy. - Hotel/motel tax: The budget includes $119,959 (rounded to $120,000) allocated to 23 outside organizations; the allocations fully fund the requests submitted this year.

Public comment and local reaction During the public comment portion of the budget hearing multiple downtown business and nonprofit leaders spoke in favor of the hotel/motel allocations and Frostburg First, the city’s accredited Main Street organization. “It's a fantastic program, and it's certainly not one that every city does,” Deirdre Robertson, executive director of Frostburg First, told the council, asking for continued predictable funding to support grants and operations. Other business owners and community leaders described Frostburg First’s role in marketing, events and building downtown capacity and said those services leverage additional grant dollars.

Process and next steps The council approved Ordinance 2025‑01 (budget) and Ordinance 2025‑02 (repeal and reenactment of the leak adjustment policy to implement service‑line protection) on first reading by voice vote; the minutes record the motions, seconds and approvals but do not record numeric tallies. Both ordinances are scheduled for public hearing and final action at the May 20, 2025 council meeting.

What the ordinance would not do The service‑line protection provider does not perform repairs; the program covers adjustments for excess usage under the provider's terms. Customers who are ineligible for the third‑party protection (for example, multi‑unit and commercial accounts) would retain the city’s existing leak adjustment policy.

Votes at a glance - Ordinance 2025‑01 (FY2026 operating budget) — approved for first reading; public hearing set for May 20, 2025. - Ordinance 2025‑02 (leak adjustment / service‑line protection) — approved for first reading; public hearing set for May 20, 2025.

Ending: The council will hold advertised public hearings on both ordinances at its May 20 meeting; any final fee additions or changes become effective only after those hearings and final adoption.