Anne Arundel approves MS4 plan despite projected $7.1m stormwater funding gap
Anne Arundel County Department of Public Works, Bureau of Utility Operations, Maryland · Meeting date: October 19, 2026 · Published: October 20, 2026
Anne Arundel County Council approved the financial assurance plan required for its Phase I MS4 permit on 19 October. The plan demonstrates funding for near-term compliance, but its longer-range projections assume stormwater-fee increases and draw on fund balance as costs exceed revenues.
Key points
- Resolution 35-26 was adopted unanimously, 7-0, approving the county’s 2026 Financial Assurance Plan for its NPDES Phase I MS4 permit.
- The existing MS4 permit expires on 4 November 2026; the plan is intended to demonstrate the county’s financial capacity to meet permit requirements.
- The Auditor independently calculated that projected FY27-FY28 resources cover 123% of projected compliance costs.
- The plan assumes stormwater-fee increases of 3% in FY28 and 5% annually from FY29 through FY31, subject to approval by the next administration and council.
- Even with those assumed increases, projected costs exceed revenue in each year from FY28 through FY31 by a cumulative $7,143,240, to be covered from available fund balance.
Full report
Anne Arundel County Council has approved the financial plan supporting compliance with the county’s Phase I municipal separate storm sewer system permit, while its independent auditor has warned that the longer-term forecasts rest on unapproved stormwater-fee increases and a projected drawdown of reserves.
Resolution 35-26, approving the county’s 2026 Financial Assurance Plan (FAP), passed unanimously on 19 October, with all seven council members voting in favour. The plan addresses compliance with the National Pollutant Discharge Elimination System permit governing stormwater discharges from the county’s MS4 network and industrial activities. The current permit expires on 4 November 2026.
At the meeting, the administration described the action as a state-required endorsement of the county’s financial assurance plan, which the council considers approximately every two years. No public testimony was submitted or delivered on the resolution.
The County Auditor said the plan meets the state requirement to show funding for 100% of projected compliance costs during FY27 and FY28. Its own recalculation put projected coverage for those two years at 123%.
However, the auditor could not confirm the administration’s fiscal-note assertion that the current stormwater fee schedule is adequate and that no future fiscal impacts are expected. The FAP assumes a 3% stormwater-fee increase in FY28, followed by annual 5% increases from FY29 through FY31. The administration confirmed that those increases would require approval by the next administration and County Council.
Even assuming those increases take effect, the FAP forecasts costs above revenues in every year from FY28 through FY31, for a cumulative shortfall of $7.143 million. The plan identifies available fund balance as the source to cover that gap.
The resolution itself has no direct impact on FY27 revenue, operating costs or capital costs, according to the auditor. Its approval instead provides the county’s required financial demonstration for the MS4 permit. It does not itself enact the future fee increases incorporated into the plan’s forecasts.
This summary was generated by AI based on the source document and may contain errors.
Source: County Council Meeting, Anne Arundel County Department of Public Works, Bureau of Utility Operations