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Record of Proceedings

Anne Arundel County Council Meeting: Auditor's Update, Housing, Energy, and Public Safety Tax Credits - Dec 9, 2025

County Council — Tuesday, December 9, 2025
BodyAnne Arundel County, Maryland
SessionCounty Council
DateTuesday, December 9, 2025
StatusFILED
Video Record
0:00 / 2:22:22

Original source
Transcript — VerbatimClick a timed line to jump · ⧉ to share it

Speaker numbers apply only to this recording. Names come from transcript evidence. “Possibly” marks uncertain attribution.

Unassigned speaker

0:03

The

Speaker 1

0:04

Ana Rondo County Council is called to order.

0:06

Please ensure all electronic devices are in silent mode.

0:10

Do any of my colleagues have any questions before we begin?

0:13

Okay.

0:14

We will now hear an update on audits and fraud, waste and abuse investigations from the auditor's office.

0:21

And Mr.

0:22

Duncan, I give you the floor.

Unassigned speaker

0:26

Thank you,

Lewis Duncan · Speaker 2Inferred

0:27

Chair.

0:28

Greetings this morning.

0:29

My name is Lewis Duncan.

0:30

I am the executive manager for the Office of the County Auditor, executing the duties of the County Auditor.

0:35

With me today, I have our investigative director Andrew Powell and our audit director, Brenda Cachwilla.

0:44

Just a quick start this morning.

0:46

We're going to be conducting a presentation to provide an overview of the office, and then I'm going to pass it over to Brenda, who will run through some of our audit ongoings, as well as Andrew, Andy or Andrew will finish up with the investigative side.

0:58

So to start off, just a quick overview of our mission.

1:02

The mission of our office is to serve the Ana Rundo County Council and its citizens by providing independent, objective, and nonpartisan audits and reviews of county government operations, programs, and legislation.

1:14

We carry out independent and objective audits and investigations and other oversight activities

Unassigned speaker

1:20

to

Lewis Duncan · Speaker 2Inferred

1:20

promote the efficiency and effectiveness and prevent and detect fraud waste and abuse in Ana Rondo County programs and operations.

1:27

Lastly, we oversee county offices and departments funded in whole or in part by the county by county funds.

1:34

The next slide kind of provides what you already know an overview of Anna Rondo County as executive branch.

1:42

As you'll see there, the legislative branch is wholly independent from the executive executive side of the House.

1:49

And with that, I'll pass it over to Brenda, who will provide an overview of the audit aspect of our operations.

Speaker 3

1:56

Good morning, Madam Chair, members of the county council.

1:59

The organizational chart you see before you consists of the executive manager who is executing the duties of the county auditor, a deputy county auditor, which is currently vacant, two assistant county auditors, one is the director of compliance and investigations, the other is the director of audits, and under the compliance and investigations division, we have an office manager, a senior analyst, and two legislative analysts, one which is currently vacant.

2:28

Under the division of audits, we have an IT audit manager, two audit managers, a senior staff auditor, and lastly, we have an administrative specialist.

Unassigned speaker

2:40

The

Speaker 3

2:41

county auditor is an officer of the legislative branch who is appointed and serves at the pleasure of you, the county council.

2:48

Mr.

2:49

Lewis Duncan Jr.

2:50

started as the executive manager executing the duties of the county auditor on November 12th of this year.

2:57

Mr.

2:57

Duncan has more than 25 years of experience in providing oversight.

3:02

He spent more than 15 years at USAID, which is the United States Agency for International Development, the Office of the Inspector General, and worked 10 years in the private and public accounting sectors.

3:19

As you are aware, the auditor's responsibility is outlined in the charter, Section 311, which gives the Office of the County Auditor responsible for audits and reviews of county government, including auditing and retaining an independent certified public accounting firm to audit the county's annual comprehensive financial report or the ACVER.

3:41

We also conduct attestation engagements and performance audits under generally accepted government auditing standards, which is also known as the yellow book, which includes evaluations of internal controls, compliance with laws and regulations, and effectiveness and efficiencies of county operations.

3:59

We also report to you, the county council, the fiscal considerations of proposed legislation, including the review of the proposed operating and capital budgets by the county executive.

4:11

The charter also gives us the responsibility to investigate allegations of fraud, waste and abuse.

4:20

Under the audit division, we conduct four types of audits.

4:23

The first is performance audits, which are audits of operations and program performance.

Unassigned speaker

4:29

The

Speaker 3

4:29

second is financial audits, which is currently contracted out, and that is required by the county charter, which I previously mentioned.

4:37

We also do information technology audits, where we will be reviewing IT systems, security, and lastly, we do the special community benefit district or SCBD reviews, which are desk reviews of their financial reports and audit reports.

Unassigned speaker

5:00

In terms of the work we do, we gather evidence from county offices, and there's three types of evidence that we gather to support our audit objectives.

Speaker 3

5:05

The first is physical evidence where we conduct site visits to observe activity implementation.

5:11

The second is documentary evidence, where we actually review records, and an example of that is a review of attendance sheets for technical capacity building.

5:20

We also do testimonial evidence where we conduct interviews, surveys, and questionnaires.

5:27

And as far as where do we get the information and sources of our audit work, it comes from a variety of factors, our own strategic goals, the county's top management challenges, your request, any prior audit and investigative results, our outreach with agency officials, any mandates by law,

Unassigned speaker

5:48

and

Speaker 3

5:48

then we also review the source and amount of funds that go to key programs and agencies.

5:53

And overall, we looked at risk and impact.

5:58

As far as accountability and transparency, once we conduct our reviews, we come up with our preliminary findings,

Unassigned speaker

6:06

then

Speaker 3

6:07

we hold exit conferences with agency officials.

6:10

From that, we obtain their we draft our audit reports, we obtain their management's response, then we finalize the report.

6:18

That report then goes to our own internal quality assurance and peer review process so that we ensure our audit reports are sufficiently supported by evidence.

6:28

Then we finalize the report and post it on our website.

Unassigned speaker

6:33

And

Discussion Breakdown — Share of Meeting
Affordable Housing███████████████████19%
Energy Storage███████████████15%
Zoning And Land Use██████████████14%
Audits And Investigations████████████12%
Water And Wastewater Management██████████10%
Public Safety███████7%
Budget Equity Analysis██████6%
Land Use Planning██████6%
Procedural████4%
Summary of Proceedings

Anne Arundel County Council Meeting - December 9, 2025

The Anne Arundel County Council convened on December 9, 2025, to receive an update from the Office of the County Auditor on audits, fraud, waste, and abuse investigations, and to discuss multiple legislative items including bills on clean energy loans, cottage home development, dog daycare, lead service line replacement, a payment-in-lieu-of-taxes agreement, public safety officer property tax credits, and resolutions on land acquisition and a charter amendment.

Auditor's Office Presentation

  • Lewis Duncan, Executive Manager for the Office of the County Auditor, introduced himself and his team: Andrew Powell (Investigative Director) and Brenda Cachwilla (Audit Director).
  • Brenda Cachwilla outlined the office's mission, organizational structure, and audit types (performance, financial, IT, special community benefit district reviews). The office reports to the county council.
  • Andrew Powell described the investigative division's new fraud, waste, and abuse program, including definitions of fraud, waste, and abuse, and a new third-party anonymous hotline (Mr. Tech Ethics Hotline) for reporting allegations. The investigation process includes intake, planning, analysis, reporting, and prevention/education.
  • Council members praised the presentation and asked about requesting audits (via email or phone) and the possibility of economic impact analyses for legislation. The office indicated that economic analysis could be developed in the future.

Discussion Items

Bill 9025 – Acquisition of Real Property by Gift (Glebe Heights)

  • Ethan Hunt (Administration) presented legislation authorizing the county to accept a partial gift for the Glebe Heights acquisition (purchased for about $1 million less than appraised value). No questions were raised; the bill appeared routine.

Bill 9125 – Clean Energy Loan Program (PACE Program)

  • Council Member Rodvian (sponsor) explained the bill expands the existing Property Assessed Clean Energy (PACE) loan program. The current cap of $25,000 would increase to $50,000, and the bill would allow both residential and commercial properties to participate (previously commercial only). Loans are administered through the county tax bill for repayment, with third-party lenders.
  • Brian Schenck (Office of Finance) clarified administrative roles: the county records the loan and collects repayment via tax bills, then remits to the lender.
  • Council members discussed advantages (high collection rate due to tax lien), potential for residential uptake (solar, geothermal), and concerns about minimum/maximum loan amounts. The sponsor noted a need for amendments to correct language and clarify thresholds for residential vs. commercial. The administration expressed support with amendments.

Bill 9225 – Cottage Home Development

  • Council Member Smith (sponsor) introduced the bill to allow cottage home developments as an affordable housing tool, focusing on smaller homes for single occupants or seniors.
  • Administration representatives (Ethan Hunt, Aaron Karpowitz) supported the concept but noted the need for amendments, including clarifying language (changing "tiny home" to "cottage home"), adding income monitoring mechanisms, and specifying price-setting limits. The bill currently requires occupancy by households earning ≤80% AMI.
  • Council members debated parking requirements (1 space per unit), appropriate zoning districts (allowed in R1 and R2, concerns about rural areas), and whether income restrictions are necessary given the expected low cost. Council Member Pickard expressed concern about allowing such density in low-density residential zones after comprehensive rezoning. Council Member Fiedler worried about large cottage developments on rural roads. The sponsor remained open to amendments to address location and density concerns.

Bill 9325 – Dog Daycare and Training Facilities

  • Council Members Pickard and Fiedler (sponsors) presented a bill to add dog training facilities as permitted uses in commercial zones (C1, C2, C3, C4) and in W1, W2 districts, distinguishing them from kennels (no overnight boarding).
  • Administration noted existing code allows dog training under "commercial kennel" definitions but requires a special exception in RA and RLD districts. They suggested using a broader definition of "pet daycare" that includes training, as being developed in an upcoming Article 18 update, to avoid confusion. Sponsors agreed to consider amendments. Council Member Smith expressed support and asked to co-sponsor, noting local need for training facilities.

Bill 9425 – Public Works, Utilities, Right-of-Way Infrastructure Maintenance Fee (Lead Service Line Replacement)

  • Ethan Hunt and Aaron Day (Department of Public Works) presented the bill to comply with EPA's Lead and Copper Rule requiring lead service line inventory and replacement. The county outlawed lead pipes in 1937, but ~8,000 properties (built before 1937) have unknown pipe materials. The bill renames the existing "Environmental Protection Fee" to "Infrastructure Maintenance Fee" and expands allowable uses to fund lead service line work on private property.
  • The county has already conducted outreach (four mailings) and now needs authority to access properties for inspection and mandatory replacement. The preferred method is potholing (12x12 inch hole) for inspection. The bill is necessary to avoid federal penalties. Council members expressed support and asked for coordination with their offices to boost public awareness and participation.

Bill 9525 – Payment in Lieu of Taxes (Little Patuxent Family)

  • Ethan Hunt presented a PILOT agreement for a 33-unit family apartment community adjacent to Watch Apple Town Center (District 4). The project will serve households earning 30-80% AMI and uses 4% LIHTC and other financing. The senior building previously completed is fully occupied. No questions were raised; the bill appeared straightforward.

Bill 9625 – Public Safety Officer Property Tax Credit

  • Council Members Smith and Ledbetter (sponsors) proposed extending the property tax credit for public safety officers (police, firefighters, volunteers) from 10 years to 25 years of service, as a retention tool. Currently, about 1,200-1,300 people receive the credit, costing ~$3.35 million annually.
  • Brian Schenck (Finance) noted no one has yet hit the 10-year cap. The bill would allow officers to receive the credit for their entire career (up to 25 years).
  • Council members discussed the fiscal impact, need for periodic review, and whether this should be part of collective bargaining. Some expressed concern about the cost growth as more officers become eligible. The sponsors argued it is essential for retention. No vote was taken; discussion will continue.

Resolution 3425 – Advanced Land Acquisition (Glebe Heights and Shipley)

  • Ethan Hunt reported that the resolution was held pending a Phase II environmental assessment on the Shipley property. Results are delayed (expected in ~10 days). The Glebe Heights parcel is not at risk.
  • Council members considered splitting the resolution to approve Glebe Heights immediately and handle Shipley later, to avoid delaying the Glebe acquisition. Administration noted urgency on Shipley due to other offers.
  • Chris Trumbauer (Budget Officer) explained that the accompanying appropriation bill could be passed separately; the funds for Shipley would remain unspent until the resolution is approved. Council indicated they would consider amendments to separate the parcels.

Resolution 3625 – Charter Amendment for Office of Multicultural Affairs

  • Council Member Smith proposed a charter amendment to place the Office of Multicultural Affairs permanently in the county charter, ensuring its continuity regardless of administration changes. The office currently has one staff member and is under the CAO.
  • Administration expressed support but noted there are other important offices not in the charter. Council Member Pickard questioned the scale of the office and suggested considering a larger reorganization. The sponsor emphasized the importance of protecting the function for vulnerable communities.

Key Outcomes

  • No final votes were taken on the bills or resolutions during this meeting. Discussions indicated that multiple bills will have amendments before final votes.
  • The council is expected to consider amendments for Bill 9125 (PACE loan caps), Bill 9225 (cottage home zoning and monitoring), Bill 9325 (definition harmonization), and Bill 9625 (review mechanism). Resolution 3425 may be amended to separate the two land parcels.
  • The meeting was adjourned until December 15, 2025, at 7 p.m. for the next legislative session.

Meeting Transcript

The Ana Rondo County Council is called to order. Please ensure all electronic devices are in silent mode. Do any of my colleagues have any questions before we begin? Okay. We will now hear an update on audits and fraud, waste and abuse investigations from the auditor's office. And Mr. Duncan, I give you the floor. Thank you, Chair. Greetings this morning. My name is Lewis Duncan. I am the executive manager for the Office of the County Auditor, executing the duties of the County Auditor. With me today, I have our investigative director Andrew Powell and our audit director, Brenda Cachwilla. Just a quick start this morning. We're going to be conducting a presentation to provide an overview of the office, and then I'm going to pass it over to Brenda, who will run through some of our audit ongoings, as well as Andrew, Andy or Andrew will finish up with the investigative side. So to start off, just a quick overview of our mission. The mission of our office is to serve the Ana Rundo County Council and its citizens by providing independent, objective, and nonpartisan audits and reviews of county government operations, programs, and legislation. We carry out independent and objective audits and investigations and other oversight activities to promote the efficiency and effectiveness and prevent and detect fraud waste and abuse in Ana Rondo County programs and operations. Lastly, we oversee county offices and departments funded in whole or in part by the county by county funds. The next slide kind of provides what you already know an overview of Anna Rondo County as executive branch. As you'll see there, the legislative branch is wholly independent from the executive executive side of the House. And with that, I'll pass it over to Brenda, who will provide an overview of the audit aspect of our operations. Good morning, Madam Chair, members of the county council. The organizational chart you see before you consists of the executive manager who is executing the duties of the county auditor, a deputy county auditor, which is currently vacant, two assistant county auditors, one is the director of compliance and investigations, the other is the director of audits, and under the compliance and investigations division, we have an office manager, a senior analyst, and two legislative analysts, one which is currently vacant. Under the division of audits, we have an IT audit manager, two audit managers, a senior staff auditor, and lastly, we have an administrative specialist. The county auditor is an officer of the legislative branch who is appointed and serves at the pleasure of you, the county council. Mr. Lewis Duncan Jr. started as the executive manager executing the duties of the county auditor on November 12th of this year. Mr. Duncan has more than 25 years of experience in providing oversight. He spent more than 15 years at USAID, which is the United States Agency for International Development, the Office of the Inspector General, and worked 10 years in the private and public accounting sectors. As you are aware, the auditor's responsibility is outlined in the charter, Section 311, which gives the Office of the County Auditor responsible for audits and reviews of county government, including auditing and retaining an independent certified public accounting firm to audit the county's annual comprehensive financial report or the ACVER. We also conduct attestation engagements and performance audits under generally accepted government auditing standards, which is also known as the yellow book, which includes evaluations of internal controls, compliance with laws and regulations, and effectiveness and efficiencies of county operations. We also report to you, the county council, the fiscal considerations of proposed legislation, including the review of the proposed operating and capital budgets by the county executive. The charter also gives us the responsibility to investigate allegations of fraud, waste and abuse. Under the audit division, we conduct four types of audits. The first is performance audits, which are audits of operations and program performance. The second is financial audits, which is currently contracted out, and that is required by the county charter, which I previously mentioned. We also do information technology audits, where we will be reviewing IT systems, security, and lastly, we do the special community benefit district or SCBD reviews, which are desk reviews of their financial reports and audit reports. In terms of the work we do, we gather evidence from county offices, and there's three types of evidence that we gather to support our audit objectives. The first is physical evidence where we conduct site visits to observe activity implementation. The second is documentary evidence, where we actually review records, and an example of that is a review of attendance sheets for technical capacity building. We also do testimonial evidence where we conduct interviews, surveys, and questionnaires. And as far as where do we get the information and sources of our audit work, it comes from a variety of factors, our own strategic goals, the county's top management challenges, your request, any prior audit and investigative results, our outreach with agency officials, any mandates by law,

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