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City staff to apply for Bay Restoration Fund grant; staff estimates more than $300,000 return

Mayor and City Council of Hagerstown · May 20, 2026
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Summary

Engineering staff told council the state Bay Restoration Fund application will likely return more than $300,000 to the city; staff explained how the local $15 quarterly bay fee is collected from roughly 32,000 accounts and said the city will not participate in nutrient trading.

Nancy Hogarath, the city staff member introduced for the engineering and capital projects program, asked the council to authorize submission of the annual Bay Restoration Fund grant application, saying the award is expected to be “in excess of $300,000.”

Hogarath explained the program mechanics: the city collects a bay fee from customers (residential customers pay $15 per quarter, she said), and jurisdictions that have upgraded wastewater treatment to enhanced nutrient removal can apply to receive a portion of those funds back. Council discussion clarified the city’s billing base is about 32,000 accounts; Councilman Asher summarized the arithmetic as roughly $60 per customer per year and suggested the city collects nearly $1.92 million in fees and could receive about $300,000–$350,000 back under current program distributions.

Hogarath also reviewed the plant’s treatment metrics: she said the plant’s total nitrogen annual average is 2.2 and total phosphorus is 0.23. She noted the grant application sets the city’s nutrient‑trading entries to zero to avoid the state reallocating any of the city’s nutrient capacity to other systems. "We do not give up any of our nutrient capacity," she said.

Council members asked clarifying questions about septic replacement grant eligibility and program changes. Hogarath said certain failing septic projects may qualify for grant review under state programs, but the amount and eligibility depend on meeting state criteria.

The council gave staff a nod to submit the application and requested the mayor sign the paperwork once complete.