Harford County’s proposed FY26 budget includes a $1 million general‑fund transfer to the watershed improvement fund to keep stormwater and Chesapeake Bay water‑quality projects on schedule, county officials told the council during a budget work session.

Why it matters: under the county’s Municipal Separate Storm Sewer System (MS4) permit administered by the Maryland Department of the Environment, Harford must plan and build projects that reduce polluted runoff into streams and, ultimately, the Chesapeake Bay. The county has funded those projects largely from an assigned portion of recordation tax revenues; staff said that fund balance has been largely exhausted and that additional ongoing revenue will be required to meet future permit obligations.

DPW staff described MS4 requirements that combine capital projects and recurring operational work: stream restoration, stormwater retrofits, tree planting, living shoreline projects and an illicit discharge detection and elimination (IDDE) program that samples stormwater outfalls for illegal discharges. Each type of project earns credits under state accounting rules used to show permit compliance.

County officials told the council that while prior years used recordation tax revenues and a fund balance to pay for projects, the fund’s balance has been depleted and “this budget is the first time” a transfer from the general fund is proposed to supplement the watershed account. Staff emphasized that the transfer is intended to preserve project delivery in the near term; they also said that a long‑term revenue solution will be necessary to sustain required permit work through future permit cycles.

Officials warned of potential enforcement if the county fails to meet MS4 commitments. County staff noted a multi‑year schedule of projects already underway and said the county has entered memoranda of understanding with incorporated towns to help them meet their separate MS4 obligations.

What’s next: the FY26 budget as presented to the council authorizes the $1 million transfer. DPW staff asked the council to approve capital appropriations that allow the department to continue delivering a multi‑year list of watershed projects; staff also said they would continue to publish annual watershed reports summarizing projects, credits and schedules.

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