Article V. Fiscal Matters.
Montgomery County, Md., Code § 21-22 (2026)
Sec. 21-22. Budget preparation.LinkCopy Citation
(a)
Each local fire and rescue department supported in whole or in part with tax funds must prepare an annual budget recommendation that describes its requirements with appropriate justification in a format prescribed by the County Executive. Each department’s budget recommendation must be submitted to the Fire Chief by the deadline set by the Chief.
(b)
The Fire Chief must prepare and submit to the Commission for its review and comment a unified Fire and Rescue Service budget, including the proposed budgets for local fire and rescue departments and the staff and compensation proposed for the LFRD representative.
(c)
The Chief must forward the Commission’s comments and recommendations on the Chief’s proposed budget, together with a summary and an analysis of County-wide implications and relationships to applicable provisions of the fire service master plan, to the County Executive for review and submission to the County Council as required by the County Charter. The Chief must transmit the proposed budget to the Executive by the deadline established by the Executive.
(d)
The County Council must appropriate funds for fire, rescue, and emergency medical services for the ensuing fiscal year as prescribed by the Charter. A person must not encumber or spend funds in excess of appropriations. All distributions of appropriations to a local fire and rescue department are conditional on the local fire and rescue department’s complying with applicable law, County regulations and policies, and lawful orders of the Fire Chief.
Montgomery County, Md., Code § 21-23 (2026)
Sec. 21-23. Taxation.LinkCopy Citation
(a)
Fire Tax District. A fire tax district, comprising the entire County, includes all real and personal property assessed for County tax purposes.
(b)
Tax levy and collection. The County Council may levy a tax on each $100 of the assessed value of taxable property in the fire tax district at a rate to yield an amount that the Council finds sufficient to fund:
(1)
the management, operation, and maintenance of all fire and rescue services;
(2)
the purchase (including debt service), construction, maintenance, and operation of real and personal property necessary or incidental to fire and rescue services;
(3)
the operation of the Fire and Rescue Service;
(4)
all tax-supported expenditures of the local fire and rescue departments; and
(5)
awards for the Length of Service Awards Program.
The fire tax must be levied and collected in the manner that other county real property taxes are levied and collected and have the same priority rights, bear the same interest and penalties, and in every respect be treated the same as other county real property taxes.
Montgomery County, Md., Code § 21-23A (2026)
Sec. 21-23A. Emergency Medical Services Insurance Reimbursement Program.LinkCopy Citation
(a)
Obligation to Provide Service.
(1)
The Fire and Rescue Service must provide emergency medical services under applicable medical protocols to each individual without regard to the individual’s ability to pay.
(2)
Fire and Rescue Service personnel may only ask for information relating to an individual’s insurance coverage when it is reasonably necessary to provide transportation to an appropriate alternative destination, or to provide treatment in place.
(b)
Definitions. In this Section the following terms have the meanings indicated:
(1)
Alternative destination means a transport destination other than a hospital emergency department such as a behavioral health facility, primary care office, or urgent care.
(2)
Emergency medical services means medical care provided by the Fire and Rescue Service of an individual by ambulance or other Fire and Rescue Service vehicle used for a similar purpose. Emergency medical services does not include transportation of an individual under an agreement between the County and a health care facility.
(3)
Federal poverty guidelines means the applicable health care poverty guidelines published in the Federal Register or otherwise issued by the federal Department of Health and Human Services.
(4)
Fire and Rescue Service means the Montgomery County Fire and Rescue Service and includes each local fire and rescue department.
(5)
Out of pocket expenses means any co-payment, deductible, or uninsured portion of the cost of emergency medical services. Out of pocket expenses does not include funds recovered from a tortfeasor or their liability insurance.
(6)
Program means the Emergency Medical Services Insurance Reimbursement Program.
(7)
Treatment in place means medical treatment provided at the scene without transport and includes treatment provided in-person, via telehealth, or both.
(c)
Imposition of reimbursement. The County must impose a reimbursement charge for any emergency medical services provided in the County, and, unless prohibited by other law, outside the County under a mutual aid agreement.
(d)
Liability for Reimbursement. Subject to paragraph (e), each individual who receives emergency medical services is responsible for paying for the emergency medical services.
(e)
Hardship Waiver.
(1)
The Fire Chief must waive the emergency medical services reimbursement for any individual whose household income is at or below 300 percent of the federal poverty guidelines. An individual must request a waiver on a form approved by the Fire Chief.
(2)
The Fire Chief may deny a request for a waiver if the individual who claims financial hardship under this Section does not furnish all information required by the Fire Chief.
(f)
County Residents - Payment of Uninsured Portion of the Emergency Medical Services Reimbursement.
(1)
County residents must not be required to pay any out-of-pocket expense relating to any emergency medical services because residents are deemed to have paid any co-payment, deductible, or uninsured portion of the cost of emergency medical services through taxes paid to the County.
(2)
Tax revenues the County receives must be treated as payment, on behalf of County residents, of the balance of each resident’s portion of the emergency medical services charge that is not covered by the resident’s insurance.
(3)
The County Council must annually transfer from the General Fund to the Consolidated Fire Tax District Fund an amount that the Council estimates will not be covered by residents’ insurance as payment of all residents’ uninsured portion of the emergency medical services charge.
(g)
Restriction on Local Fire and Rescue Departments. A local fire and rescue department must not impose a separate charge for emergency medical services.
(h)
Use of Revenue.
(1)
Except for the transfer received from the General Fund under subsection (f), the revenues collected from the emergency medical services reimbursement must be used to supplement, and must not supplant, Fiscal Year 2013 expenditures appropriated in the annual operating budget resolution (not including any expenditures of revenue collected under this program in Fiscal Year 2013) for emergency medical services and other related fire and rescue services provided by the Fire and Rescue Service.
(2)
The Fire Chief must create a dedicated account in the fire fund for the revenues collected from reimbursements under this Program. This amount must only be used for increased or enhanced fire and rescue services above the level appropriated in Fiscal Year 2013, as provided in paragraph (1), including new field service positions related to expansion of 4 person staffing or opening of new fire stations; increased training classes or capacity; facility maintenance and repair; new or replacement apparatus, gear, or equipment. Not more than 30 percent of this account may be spent for personnel costs.
(3)
(A)
Fifteen percent of the net Emergency Medical Services Insurance Reimbursement Program revenue must be allocated under a procedure specified in the annual operating budget resolution for:
(i)
replacement or augmentation of apparatus used by one or more local fire and rescue departments;
(ii)
facilities used by one or more local fire and rescue departments;
(iii)
training for volunteers;
(iv)
gear and equipment for volunteers;
(v)
administrative staff, including administrative staff of the authorized LFRD representative, to support one or more local fire and rescue departments;
(vi)
volunteer recruitment and retention; and
(vii)
volunteer stand-by support.
(B)
Any administrative staff hired or retained by a local fire and rescue department or the authorized LFRD representative using revenue allocated under this Section is not a County employee or a member of the separate merit system referred to in Section 21-16(a).
(C)
The annual operating budget resolution under subparagraph (A) may require or authorize the distribution of revenue to either or both:
(i)
the authorized LFRD representative; and
(ii)
individual local fire and rescue departments.
(D)
The Executive may enter into one or more contracts on behalf of the County to effectuate the distribution of funds as specified under subparagraph (C).
(i)
Regulations; Reimbursement Schedule. The County Executive must adopt a regulation under method (2) to implement the emergency medical services reimbursement program. The regulation must establish a reimbursement schedule based on the cost of providing emergency medical services. The reimbursement schedule may include an annual automatic adjustment based on inflation, as measured by an index reasonably related to the cost of providing emergency medical services. The regulation may require each individual who receives emergency medical services to provide financial information, including all the individual’s insurance coverage, and to assign insurance benefits to the County.
(j)
Reporting. The Fire Chief must submit a report to the County Executive and County Council not later than January 1 and July 1 of each year regarding implementation of the Program. The report should include:
(1)
the number of calls for emergency medical services during the reporting period;
(2)
the number and type of emergency medical services provided during the reporting period; and
(3)
any other information relating to implementation of the Program that the County Executive or County Council request.
(k)
Patient Advocate. The Office of Consumer Protection must employ a Patient Advocate to:
(1)
develop and implement a program for customer service as a part of the Program;
(2)
develop and staff a help desk for questions regarding the Program; and
(3)
serve as a liaison with any vendor retained by the County to implement the Program to assure high quality customer service and prompt resolution of questions and concerns.
(l)
Outreach and Education Campaign. The County Executive must implement a public outreach and education campaign before and during implementation of the Program. This campaign should include:
(1)
informational mailers to County households;
(2)
distribution of information through County internet and web-based resources;
(3)
radio and television public service announcements;
(4)
news releases and news events;
(5)
information translated into Spanish, French, Chinese, Korean, Vietnamese, and other languages, as needed;
(6)
extensive use of County Cable Montgomery and other Public, Educational, and Government channels funded by the County;
(7)
posters and brochures made available at County events, on Ride-On buses and through Regional Service Centers, libraries, recreation facilities, senior centers, public schools, Montgomery College, health care providers, hospitals, clinics, and other venues; and
(8)
special outreach to senior and “New American” communities.
Sec. 3. Implementation. The County may collect the emergency medical services transport reimbursement authorized by County Code Section 21-23A, enacted by Section 1 of this Act, for any emergency medical services transport that occurs on or after July 1, 2012. The reimbursement may be collected retroactively to July 1, 2012, or any later date during the first fiscal year the emergency medical services transport reimbursement is implemented.
Sec. 4. Fire and Rescue Service Enhancements in Fiscal Year 2013. Subject to appropriation, the Council intends that, to the extent sufficient revenue is achieved, revenue generated by the Emergency Medical Services Transport Insurance Reimbursement Program authorized in County Code Section 21-23A, enacted in Section 1 of this Act, in Fiscal Year 2013 should be used to fund the following enhancements to the County Fire and Rescue Service in Fiscal Year 2013:
(a)
Service Restoration: Place one ladder truck in the first battalion back into service with dedicated 24- hour staffing.
(b)
Apparatus Replacement Funding: Buy one tractor drawn ladder truck, one Engine Company, and 5 EMS units for system unit response improvements.
(c)
Facility Maintenance and Improvements: Conduct a strategic facility assessment, develop a maintenance and improvement plan for all LFRD- and County-owned fire and rescue facilities and, to the extent possible based on available funding, begin initial maintenance and repairs to these facilities.
(d)
Training: Provide system training for career and volunteer personnel, including core fire, rescue, EMS, technical rescue, and driver training classes.
(e)
Fire and Rescue Equipment: Buy personal protective equipment, portable fire, rescue, technical rescue, and EMS equipment for career and volunteer personnel, the training academy, and operational units.
Montgomery County, Md., Code § 21-24 (2026)
Sec. 21-24. Fire tax funds.LinkCopy Citation
(a)
Distribution. The County must pay all appropriated funds budgeted for use by a local fire and rescue department at least on a monthly basis to the department in accordance with a projected monthly schedule or approved budget submitted by that department before the start of the fiscal year. At the request of a local fire and rescue department, the County, as a service to that department, may retain, disburse, and account for any fire tax funds budgeted for use by that department.
(b)
Expenditures and investments. The treasurers, as authorized by the local fire and rescue department, must pay all proper costs, expenses, claims and demands necessary for the maintenance, equipment, and operation of the local fire and rescue department. Any money which the County retains on behalf of the local fire and rescue department must be invested in the County’s investment fund. The proceeds from those investments must be credited to each local fire and rescue department for the next fiscal year after the funds were invested. Proceeds must be credited to each local fire and rescue department in proportion to the amount of funds retained and invested by the County.
(c)
Treasurer’s bond. Each local fire and rescue department must provide a corporate bond to the County approved by the Director of Finance conditioned on the faithful discharge of the duties of the treasurer. The Director may approve a blanket corporate bond covering one or more local fire and rescue departments.
(d)
Audit. Financial transactions involving County fire tax funds must be included in the annual audit required by the Charter. Copies of the annual audit must be provided to the County Council, the Commission, and each local fire and rescue department.
Montgomery County, Md., Code § 21-25 (2026)
Sec. 21-25. Debt.LinkCopy Citation
The annual budget must include an appropriation sufficient to pay the principal and interest obligation for the ensuing fiscal year of any county bonds issued and outstanding for fire service purposes.
Montgomery County, Md., Code § 21-26 (2026)
Sec. 21-26. Title to assets; sale or disposition.LinkCopy Citation
(a)
Title to fire, rescue, and emergency medical service apparatus and facilities, purchased in whole or in part with any tax funds before July 30, 1980, may be retained by the local fire and rescue department unless the appropriation resolution that funded the purchase specified otherwise.
(b)
All apparatus and facilities purchased with tax funds after July 30, 1980, must be titled to the County and must be assigned in accordance with the adopted master fire, rescue, and emergency services plan. A newly constructed fire station, purchased with tax funds after July 1, 1999, may be held under a title reflecting concurrent ownership by the County and a local fire and rescue department if:
(1)
the station complies with the adopted master fire, rescue, and emergency medical services plan;
(2)
the local fire and rescue department has contributed, or is legally committed to contribute, at least 50 percent of the on-site cost of the station, including any land cost, and of the station's proportionate share of off-site costs directly attributable to the project; and
(3)
the Chief Administrative Officer has signed a contract with the local fire and rescue department that assures, to the fullest extent legally possible, that the station will be available for fire and rescue purposes until the station is disposed of under subsection (c), and that the station will be operated according to County law, regulations, and policies.
(c)
The Chief Administrative Officer must approve each sale or other disposition of any apparatus or facilities to ensure that the sale or other disposition does not adversely affect the public interest. If the Chief Administrative Officer does not approve a sale or other disposition, the County Council may by resolution approve the proposed sale or disposition. The proportionate share of the proceeds of any such disposition attributable to fire tax funds must be used by the local fire and rescue department for fire, rescue or emergency medical services, or be returned to the fire tax district. In a dispute over the source and amount of original financing, or over the value of the apparatus or facilities, the County agrees to binding arbitration under the Maryland Uniform Arbitration Act to resolve the dispute.
(d)
The County acknowledges that it has no ownership claim to any equipment, apparatus, facilities, or property acquired without any use of tax funds. This Chapter does not authorize the County to require the transfer of ownership of any such equipment, apparatus, facilities, or property to the County.
(e)
The County may accept title and all encumbrances to any fire, rescue, or emergency medical service apparatus, equipment, facility or property from any local fire and rescue department that requests the transfer of title, even if the item is subject to an existing debt. The Chief Administrative Officer must approve or reject the transfer after considering any recommendations by the Commission. The Chief Administrative Officer, after considering the Commission’s advice and recommendations, must develop procedures for the orderly disposition of assets of any local fire and rescue department that is unable to provide fire, rescue, or emergency medical services so that the assets continue to be used to provide fire, rescue, and emergency medical services in that community.
(f)
Any funds accruing to the County from the sale or other disposition of any apparatus, equipment, facility or property must be applied to the funding of fire and rescue appropriations approved by the County Council.
(g)
For purposes of operation, the Chief Administrative Officer, after considering the Commission’s advice and recommendations, must assign fire stations when built or acquired to a local fire and rescue department or, with the concurrence of the County Executive and County Council, to the Fire and Rescue Service. This Section does not preclude the Fire and Rescue Service from operating a fire station as otherwise provided by law.
Montgomery County, Md., Code § 21-27 (2026)
Sec. 21-27. Purchasing and contracting.LinkCopy Citation
The Fire Chief, after receiving Commission approval under Section 21-2(d)(4), must establish procedures, by regulation, that govern any purchase or contract by any department that will be financed in whole or in part with tax funds.