# Subtitle 3 – Setting Rates and Charges; Expenditures

Current through 2026-07-17. Source: City of Balt., Md., Ord. 26-129. Published by the Baltimore City Department of Legislative Reference.

## § 3-1 Board of Estimates to set.

Balt., Md., Code art. 24, § 3-1 (2026)

(a) The Board of Estimates, on the recommendation of the Director of Finance and the Director of Public Works, may establish, assess, and change rates and charges for:

  (1) sanitary wastewater; and

  (2) for the supply or use or both of water, for any purpose and at any point in or outside Baltimore City,  whether by meter, fixed charge, or otherwise.

(b) At least 30 days before taking any final action on rates or charges, the Board of Estimates:

  (1) shall publish notice of the proposed action;

  (2) shall send the recommendations of the Director of Finance and the Director of Public Works to the City Council and the members thereof; and

  (3) shall afford an opportunity for the Council members and the public to make recommendations thereon.

(c) The Board shall also have the power to provide for abatement and reduction of such rates or other charges.

*History: Ord. 04-125*

*History: Ord. 11-043*

*History: Ord. 23-072*

*History: Ord. 78-941*

*History: Ord. 02-476*

## § 3-2 Accounting system

Balt., Md., Code art. 24, § 3-2 (2026)

(a) The accounting system for the water and sanitary wastewater utilities:

  (1) shall conform to generally accepted principles of utility accounting; and

  (2) shall be kept on the accrual basis and in the manner prescribed in <cite data-doc="City of Baltimore, Md., Charter" data-path="VII|§11">Article VII, § 11 of the City Charter</cite>.

(b) The records of revenues of each said utility shall be kept so that the sales made to each class of customer according to the rate schedules adopted by the Board of Estimates for each utility can be determined.

*History: Ord. 78-941*

## § 3-3 Annual report.

Balt., Md., Code art. 24, § 3-3 (2026)

After the close of each fiscal year, there shall be submitted to the Board of Estimates, the Board of Finance, and to the members of the City Council, a report which may be submitted as a separate section of the statements prescribed under <cite data-doc="City of Baltimore, Md., Charter" data-path="VII|§11">Article VII, § 11 of the City Charter</cite> as to the operation of each said utility containing at least the following financial statements:

(1) a comparative balance sheet showing the financial condition of the utility as of the beginning and close of the fiscal year;

(2) an analysis of the retained earnings account showing the factors of change in the account as reflected by the comparative balance sheet;

(3) a comparative income statement of the last 2 fiscal years; and

(4) a comparative detailed analysis of operating expense for the last 2 fiscal years according to functional groupings.

*History: Ord. 78-941*

## § 3-4 Excess revenues.

Balt., Md., Code art. 24, § 3-4 (2026)

(a) After the budgets of the water and sanitary wastewater utilities have been adopted, should it appear that for either utility there will be revenues in excess of those budgeted:

  (1) additional expenditures may be authorized by the Board of Estimates from the funds of that utility in an amount not exceeding such excess; or

  (2) upon recommendation of the Directors of Finance and Public Works, the Board may decrease the utility rates and charges.

(b) Any such additional expenditures of the water or sanitary wastewater utility shall be subject to the appropriation procedures provided in <cite data-doc="City of Baltimore, Md., Charter" data-path="VI">Article VI of the City Charter</cite>.

*History: Ord. 78-941*

## § 3-5 Setting rates and charges.

Balt., Md., Code art. 24, § 3-5 (2026)

(a) It shall be the duty of the Director of Finance and the Director of Public Works to recommend, and the duty of the Board of Estimates to:

  (1) establish rates and charges to make each utility financially self-sustaining at all times; and

  (2) adjust the rates if the projected profit and loss statement for the current year anticipates a loss and the actual results for the immediate prior year resulted in a loss or deficit.

(b) The rates so established shall be at a level sufficient to recover any accumulated loss from prior years.

(c) In order to make and assure that each utility is financially self-sustaining, there shall be provision for:

  (1) operating and maintenance costs;

  (2) depreciation accruals;

  (3) amortization of bonds; and

  (4) reasonable accumulation of surplus.

(d) Charges shall be made to various classes of consumers including but not limited to domestic, commercial, industrial, and municipal government and other governmental users of the services of water and sanitary wastewater utilities.

*History: Ord. 78-941*

## § 3-6 Approval of expenditures.

Balt., Md., Code art. 24, § 3-6 (2026)

(a) Expenditures may be made with the approval of the Board of Estimates from the appropriated funds of either utility, on the recommendation of the Director of Public Works, for necessary renewing, improving, rebuilding, or extending the plant and distribution system of such utility including all costs related thereto.

(b) The budgets for renewing, improving, rebuilding or extending the plant and distribution system of such utility shall be prepared in the manner prescribed in <cite data-doc="City of Baltimore, Md., Charter" data-path="V">Article V of the City Charter</cite>.

*History: Ord. 78-941*

## § 3-7 City loans to utility.

Balt., Md., Code art. 24, § 3-7 (2026)

(a) The City may lend to each utility an amount not to exceed the equivalent to a 60-day cash working capital requirement.

(b) Any such loan shall be repaid by each utility on or before 24 months from the date of such loan, with interest at the rate of average interest earned by the City on its invested funds during the same period.

*History: Ord. 78-941*

## § 3-8 Conflict with covenants, etc.

Balt., Md., Code art. 24, § 3-8 (2026)

In the event that any provision in this subtitle for the water and sanitary wastewater utilities shall be inconsistent with any covenants, conditions, laws, or any regulations promulgated thereunder governing any contract, project, or grant from the United States or from the State or funds dedicated by an Act of Congress or by State law or by the terms of any private grant, such provision in this section shall be applicable only to the extent that it is not inconsistent with any such covenants, laws, or regulations for any federal or State contract, project, or grant or with the terms of any such private grant.

*History: Ord. 78-941*