FY24 Audited Finance Statements

Exactly as extracted, unformatted — for checking against the original. The readable version is easier to read.

TOWN OF CENTREVILLE, MARYLAND
Financial Statements Together with
Report of Independent Public Accountants
For the Year Ended June 30, 2024

TOWN OF CENTREVILLE, MARYLAND
Financial Statements Together with
Report of Independent Public Accountants
JUNE 30, 2024
CONTENTS
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 4
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position 14
Statement of Activities 15
Fund Financial Statements
Balance Sheet - Governmental Funds 16
Reconciliation of the Governmental Funds Balance to the Statement of Net Position 17
Statement of Revenue, Expenditures, and Changes in Fund Balance - Governmental
Fund 18
Reconciliation of the Statement of Revenue, Expenditures, and Changes in Fund
Balance - Governmental Fund to the Statement of Activities 19
Statement of Net Position - Proprietary Fund 20
Statement of Revenue, Expenses, and Changes in Fund Net Position - Proprietary Fund 21
Statement of Cash Flows - Proprietary Fund 22
Notes to the Financial Statements 23
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of the Town’s Proportionate Share of the Net Pension Liability 4 6
Schedule of the Town’s Pension Plan Contributions 47
Schedule of Net OPEB Liability and Related Ratios 48
Schedule of Revenue and Expenditures Budget and Actual (Budgetary Basis) – General
Fund 49
SUPPLEMENTAL SCHEDULES
Supplemental Balance Sheet – General Fund 52
Supplemental Schedule of Revenue, Expenditures and Changes in Fund Balances –
General Fund 53
Supplemental Schedule of Revenue, Expenses and Changes in Net Position –
Proprietary Fund 54

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
Members of the Town Council
Town of Centreville, Maryland
Opinions
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
Town of Centreville, Maryland (the Town), as of June 30, 2024, and for the year then ended, and
the related notes to the financial statements, which collectively comprise the Town’s basic
financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the Town, as of June 30, 2024, and
the respective changes in financial position and, where applicable, cash flows thereof for the year
then ended in accordance with accounting principles generally accepted in the United States of
America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (GAAS). Our responsibilities under those standards are further described in
the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
are required to be independent of the Town and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America, and
for the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s
ability to continue as a going concern for twelve months beyond the financial statement date,
including any currently known information that may raise substantial doubt shortly thereafter.
10200 Grand Central Avenue • Suite 250 • Owings Mills • Maryland 21117 • P 410.584.0060 • F 410.584.0061

Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but
is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance
with GAAS will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user
based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the
audit.
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Town’s internal control. Accordingly,
no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the Town’s ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, schedule of the Town’s proportionate share of the net
pension liability, schedule of the Town’s pension plan contributions, schedule of revenue and
expenditures – budget and actual (budgetary basis) – General fund, and schedule of net OPEB
liability and related ratios be presented to supplement the basic financial statements. Such
information is the responsibility of management and, although not part of the basic financial
2

statements, is required by the Governmental Accounting Standards Board, who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during
our audit of the basic financial statements. We do not express an opinion or provide any assurance
on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town’s basic financial statements. The accompanying supplemental
balance sheet and schedule of revenue, expenditures and changes in fund balance for the general
fund and schedule of revenue, expenses and changes in net position for the proprietary fund are
presented for the purposes of additional analysis and are not a required part of the basic financial
statements.
The accompanying supplemental balance sheet and schedule of revenue, expenditures and changes
in fund balance for the general fund and schedule of revenue, expenses and changes in net position
for the proprietary fund are the responsibility of management and were derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of
the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the supplemental balance sheet and schedule of revenue, expenditures
and changes in fund balance for the general fund and schedule of revenue, expenses and changes in
net position for the proprietary fund are fairly stated in all material respects in relation to the basic
financial statements as a whole.
Owings Mills, Maryland
November 26, 2024
3

TOWN OF CENTREVILLE, MARYLAND
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
This section of the annual financial statements of the Town of Centreville, Maryland (the Town)
presents a narrative overview and analysis of the financial activities of the Town for the fiscal
year ended June 30, 2024. Readers are encouraged to consider the information presented here in
conjunction with the basic financial statements and the accompanying notes.
Financial Highlights
• The assets and deferred outflows of the Town exceeded its liabilities and deferred inflows
at the close of fiscal year June 30, 2024 by $38,651,230 (net position). Approximately
60% of this amount is attributable to the business-type activities. Of the total net position,
$8,775,680 (unrestricted net position) may be used to meet the Town’s ongoing
obligations to citizens and creditors (45% is attributable to the business-type activities).
Of the remaining total net position, $2,291,508 is restricted for specific purposes
(restricted net position) and $27,584,042 is the net investment in capital assets.
• As of June 30, 2024, the Town’s governmental funds reported combined ending fund
balances of $10,061,963.
• The Town’s total debt decreased by $1,908,279 through principal payments to a year-end
balance of $10,531,000, which is well below the legal debt limit per the Town Charter as
discussed in Note 13, Borrowing Limit.
• As of the close of the current fiscal year, the unassigned fund balance for the general fund
was $7,316,495 or 116% of total general fund expenditures.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town’s basic financial
statements. The Town’s basic financial statements comprise of three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic
financial statements themselves.
Government-wide financial statements
The government-wide financial statements are designed to provide readers with a broad
overview of the Town’s finances in a manner similar to a private-sector business. The
government-wide statements are on a full accrual accounting basis, including the elimination
and/or reclassification of internal activities.
4

TOWN OF CENTREVILLE, MARYLAND
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
Overview of the Financial Statements (continued)
Government-wide financial statements (continued)
The statement of net position presents information on all of the Town’s assets, liabilities, and
deferred inflows and outflows of resources. The difference between assets plus deferred outflows
and liabilities plus deferred inflows is reported as net position. Over time, increases or decreases
in net position may serve as a useful indicator of whether the financial position of the Town is
improving or deteriorating.
The statement of activities presents information showing how the Town’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenue and expenses are reported in this statement which represent items that will result
in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation
leave).
Both of the government-wide financial statements distinguish functions of the Town that are
principally supported by taxes and intergovernmental revenue (governmental activities) from
other functions that are intended to recover all or a significant portion of costs through user fees
and charges (business-type activities). The governmental activities of the Town include general
government, public safety, public works, sanitation, parks and recreation, cemetery and
stormwater and watershed management. The business-type activities of the Town include water
and sewer operations.
The government-wide financial statements can be found on pages 14 and 15 of this report.
Fund financial statements
A fund is a group of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The Town, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the Town can be divided into two categories:
governmental funds and proprietary funds.
Governmental funds
Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating a
government’s near-term financing requirements.
5

TOWN OF CENTREVILLE, MARYLAND
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
Overview of the Financial Statements (continued)
Governmental funds (continued)
Since the government-wide focus includes the long-term view and the fund focus includes the
short-term view, comparisons between these two perspectives may provide insight into the long-
term impact of short-term financing decisions. By doing so, readers may better understand the
long-term impact of the government’s near-term financing decisions. Both the governmental
fund balance sheet and governmental fund statement of revenue, expenditures, and changes in
fund balances provide a reconciliation to facilitate this comparison between governmental funds
and governmental activities.
The Town adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget. A
budgetary comparison statement can be found on pages 48-49 of this report.
Proprietary fund
The Town maintains one proprietary fund: an enterprise fund. Enterprise funds are used to
report the same functions presented as business-type activities in the government-wide financial
statements. The Town uses an enterprise fund to account for its water and sewer infrastructure
and operations.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the water and sewer operations, which is considered to be a major fund of the
Town. The basic proprietary fund financial statements can be found on pages 20-22 of this
report.
Notes to basic financial statements
The notes to the financial statements provide additional information essential to a full
understanding of the data provided in the government-wide and fund financial statements. The
notes to financial statements are part of the basic financial statements and can be found on pages
23-44 of this report.
Required supplementary information
In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information concerning budgetary comparison of the Town’s
general fund, the Town’s change in net OPEB liability for other post-employment benefits
(OPEB) to its employees and the Town’s proportionate share of the collective Net Pension
Liability. Required supplementary information is located on pages 46-50 of this report.
6

TOWN OF CENTREVILLE, MARYLAND
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
Government-Wide Financial Analysis
Over time, changes in net position serve as a useful indicator of a government’s financial
position. In the case of the Town, assets and deferred outflows exceeded liabilities and deferred
inflows by $38,651,230 as of June 30, 2024.
The largest portion of the Town’s net position (71%) reflects its investment in capital assets, net
of depreciation (e.g., buildings, land, improvements, equipment, vehicles, infrastructure, and
sewer and water utility systems), less any unmatured debt used to acquire or construct those
assets. The Town uses these capital assets to provide services to citizens; consequently, these
assets are not available for future spending. Although the Town’s investment in its capital assets
is reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities. An additional portion of the Town’s net position ($2.3 million or 6%)
represents resources that are restricted by enabling legislation on how they may be used. The
remaining balance of unrestricted net position (23%) may be used to meet the government’s
ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the Town reports positive balances in all three categories of
net position, both for the government as a whole as well as for its separate governmental
activities. Business-type activities report positive balances in all net position categories.
STATEMENT OF NET POSITION
Government-Wide Financial Analysis
A summary of government-wide assets, liabilities and net position is as follows:
Governmental Business-type Total
Activities Activities Primary Government
2024 2023 2024 2023 2024 2023
Assets
Current and other assets $ 10,707,511 $ 9,771,881 $ 5,450,213 $ 6,173,780 $ 16,157,724 $ 15,945,661
Capital assets, net 10,761,698 11,529,606 27,353,344 28,023,911 38,115,042 39,553,517
Total Assets 21,469,209 21,301,487 32,803,557 34,197,691 54,272,766 55,499,178
Deferred Outflows of Resources 1,029,889 679,433 - - 1,029,889 679,433
Liabilities
Current liabilities 759,033 1,005,742 2,205,328 2,237,763 2,964,361 3,243,505
Long-term liabilities 5,872,698 4,551,426 7,324,000 8,420,860 13,196,698 12,972,286
Total Liabilities 6,631,731 5,557,168 9,529,328 10,658,623 16,161,059 16,215,791
Deferred Inflows of Resources 490,366 583,465 - - 490,366 583,465
Net Position
Net investment in capital assets 8,256,698 8,293,314 19,327,344 18,764,362 27,584,042 27,057,676
Restricted 2,291,508 2,275,101 - - 2,291,508 2,275,101
Unrestricted 4,828,795 5,271,872 3,946,885 4,774,706 8,775,680 10,046,578
Total Net Position $ 15,377,001 $ 15,840,287 $ 23,274,229 $ 23,539,068 $ 38,651,230 $ 39,379,355
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TOWN OF CENTREVILLE, MARYLAND
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
Government-Wide Financial Analysis (continued)
The Town’s net position decreased by $728,125 during the year ended June 30, 2024. This
decrease is a result of a $463,286 decrease in governmental activities and a $264,839 decrease in
business-type activities.
The governmental activities decreased the Town’s net position by $463,286. Key elements are as
follows:
• Depreciation expense of $985,173.
• Police officers were added to the Maryland State Retirement and Pension System, which
caused an added expense in the public safety of approximately $1.3 million.
• Local income revenues saw an increase of 70% from expectations.
• Public Utility Tax revenues increased based on the assessed value of the properties from
the State of Maryland.
Business-type activities decreased the Town’s net position by $264,839. The components of the
change in the business-type activities are as follows:
• Water and Sewer services expenses increased during the fiscal year 2024.
• Charges for services for water and sewer fees continued to increase as a result of a rate
increase that totals 5% this FY.
• Revenues related to water and sewer allocations and meter equipment did not increase
substantially as new development of real estate slowed during the fiscal year.
8

TOWN OF CENTREVILLE, MARYLAND
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
Government-Wide Financial Analysis (continued)
STATEMENT OF ACTIVITIES
The following table summarizes changes in net position for governmental and business-type
activities during the year:
Governmental Business-type Total
Activities Activities Primary Government
2024 2023 2024 2023 2024 2023
Revenue
Program revenue:
Charges for services $ 6 09,682 $ 663,852 $ 3,372,605 $ 2,885,244 $ 3,982,287 $ 3,549,096
Operating grants and contributions 3 73,697 617,203 - 2,437,384 373,697 3,054,587
General revenue:
Property taxes 3 ,437,065 3,320,324 - - 3,437,065 3,320,324
Other taxes 2,181,047 2,165,121 - - 2,181,047 2,165,121
Other 813,301 715,366 4 0 40 813,341 715,406
Total Revenue 7,414,792 7,481,866 3,372,645 5,322,668 10,787,437 12,804,534
Program Expenses
General government 1,386,605 1,052,694 - - 1,386,605 1,052,694
Public safety 3,515,404 2,342,118 - - 3,515,404 2,342,118
Public works 2,542,113 2,396,508 - - 2,542,113 2,396,508
Parks and recreation 164,402 147,236 - - 164,402 147,236
Cemetery 44,356 51,416 - - 44,356 51,416
Stormwater/Watershed 51,206 58,387 - - 51,206 58,387
Centreville wharf 86,034 103,541 - - 86,034 103,541
Interest on long-term debt 87,958 110,916 - - 87,958 110,916
Enterprise expenses - -
Water, sewer & farm - - 3,637,484 3,434,404 3,637,484 3,434,404
Total Program Expenses 7,878,078 6,262,816 3,637,484 3,434,404 11,515,562 9,697,220
Change in Net Position (463,286) 1,219,050 (264,839) 1,888,264 (728,125) 3,107,314
Net position, beginning of year 15,840,287 14,621,237 23,539,068 21,650,804 39,379,355 36,272,041
Net Position, End of Year $ 15,377,001 $ 15,840,287 $ 23,274,229 $ 23,539,068 $ 38,651,230 $ 39,379,355
Business-Type Activities
Revenue from the Town’s business-type activities were $3,372,645 and expenses were
$3,637,484. The Enterprise Fund’s costs of operation are shared equally by the users. As with
most municipalities throughout the United States, these costs will continue to provide many
challenges in the coming years due to aging infrastructure. The Town Council continues with its
philosophy of having new development pay for any infrastructure improvements required to
accommodate the demands placed on the Town’s infrastructure by the new development. With
the continued slow growth, building activity has been at a minimum resulting in a slight decrease
of residential and commercial allocation fee revenue.
9

TOWN OF CENTREVILLE, MARYLAND
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
Government-Wide Financial Analysis (continued)
Governmental Activities
Revenue from the Town’s governmental activities was $7,414,792 while total expenses were
$6,519,192. The table below presents the cost of each of the Town’s seven largest services –
general government, public safety, public works, parks and recreation, cemetery,
stormwater/watershed management and Centreville wharf, as well as each service’s net cost
(total cost less fees generated by the activities and intergovernmental aid), excluding interest on
long-term debt.
Total Cost of Services Net Cost (Surplus) of Services
2024 2023 2024 2023
General government $ 1,386,605 $ 1,052,694 $ 1,172,861 $ 550,532
Public safety 3,515,404 2,342,118 3,413,340 2,209,210
Public works 2,542,113 2,396,508 1,874,542 1,750,523
Parks and recreation 164,402 147,236 164,402 147,236
Cemetery 44,356 51,416 44,356 51,416
Stormwater/Watershed 51,206 58,387 51,206 58,387
Centreville wharf 86,034 103,541 86,034 103,541
Total $ 7,790,120 $ 6,151,900 $ 6,806,741 $ 4,870,845
The net cost shows the financial burden that was placed on the Town’s taxpayers by each of
these services.
• The cost of all governmental activities this year, excluding interest, was approximately
$6.4 million. Some of that cost was financed by:
o Those who directly benefited from the programs ($610 thousand); or
o Other governments and organizations that subsidized certain programs with grants
and contributions ($374 thousand).
• The Town financed the remaining “public benefit” portion of governmental activities
with taxes.
10

TOWN OF CENTREVILLE, MARYLAND
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
General Fund
Percent of Percent of
2024 Total 2023 Total
Revenue
General property taxes $ 4,602,915 61% $ 4,322,750 59%
Local income taxes 1,284,019 17% 1,087,217 15%
Licenses and permits 112,843 1% 136,283 2%
Charges for services 496,839 7% 527,569 7%
Intergovernmental 373,697 5% 617,203 8%
Miscellaneous 714,032 9% 647,855 9%
Total Revenue $ 7,584,345 100% $ 7,338,877 100%
General property taxes comprise the largest source of Town revenue, totaling $4.6 million (61%)
of total revenues for the general fund for fiscal year 2024. Each municipality sets its own
property tax rates within parameters established by the State. For fiscal year 2024, the Town’s
property tax rate was $0.535 per $100 of assessed value of real property.
Charges for services totaling $497 thousand (7%) reflect fees charged to Town citizens. These
primarily support public works, sanitation and waste removal, cemetery maintenance and
upkeep, and various general government administrative services such as permit review,
subdivision and site fees.
Local income taxes totaled $1.3 million or approximately 17% of total governmental revenue.
This revenue source fluctuates with changes in personal income levels, the ups and downs of the
economy and also has some association with unemployment rates during the fiscal year.
Percent of Percent of
2024 Total 2023 Total
Expenditures:
Current operations:
General government $ 1,433,712 23% $ 1,289,248 21%
Public safety 1,973,453 30% 1,994,018 32%
Public works 1,721,336 27% 1,335,409 21%
Parks and recreation 132,451 2% 102,702 2%
Cemetery 41,619 1% 42,069 1%
Stormwater/Watershed 11,811 0% 11,024 0%
Centreville wharf 55,104 1% 45,063 1%
Capital outlays 186,063 3% 529,806 8%
Debt service:
Principal 674,730 11% 793,127 13%
Interest 87,958 1% 110,916 2%
Total $ 6,318,237 100% $ 6,253,382 100%
11

TOWN OF CENTREVILLE, MARYLAND
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
General Fund Budgetary Highlights
The Town adopts an operating budget as of July 1 each year and amends that budget throughout
the year in response to actual events. The Schedule of Revenues and Expenditures - Budget and
Actual can be found as part of the Required Supplementary Information, which is located after
the Notes on pages 49 and 50. The schedule reports original and final budgets as well as the
variance between actual expenditures and final budget.
Capital Assets and Debt Administration
Governmental Activities Business-type Activities Total
2024 2023 2024 2023 2024 2023
Land $ 2,877,305 $ 2 ,877,305 $ 1,340,863 $ 1 ,340,863 $ 4,218,168 $ 4 ,218,168
Buildings and improvements 7,217,408 8 ,035,570 25,835,791 2 6,538,304 33,053,199 3 4,573,874
Equipment 666,985 6 16,731 176,690 1 44,744 843,675 7 61,475
Total $ 10,761,698 $ 1 1,529,606 $ 27,353,344 $ 2 8,023,911 $ 38,115,042 $ 3 9,553,517
The Town’s total investment in capital assets for its governmental and business-type activities
amounts to approximately $38.1 million and $39.5 million as of June 30, 2024 and 2023,
respectively (net of accumulated depreciation). This investment in capital assets includes land
and land improvements, construction in progress, buildings, improvements, equipment, furniture,
fixtures, park amenities, vehicles, roads, and water and sewer infrastructure.
The Town’s total investment in capital assets for the current fiscal year, net of depreciation,
decreased by approximately $1.4 million. Of this amount, governmental investment in capital
assets decreased by $768 thousand and business-type investment in capital assets decreased by
$671 thousand.
Additional information can be found in Note 6 on pages 32-33 of this report.
Debt Administration
At the end of the current fiscal year, the Town had total long-term debt outstanding of $10.5
million in bond commitments.
Governmental Activities Business-type Activities Total
2024 2023 2024 2023 2024 2023
Bonds payable $ 2,505,000 $ 3,179,730 $ 8,026,000 $ 9,259,549 $ 10,531,000 $ 12,439,279
Additional information on the Town’s long-term debt is located in Note 7, starting on page 33 of
this report.
12

TOWN OF CENTREVILLE, MARYLAND
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
Subsequent Items for Future Financial Statements
The General Fund Budget for FY25 is based on a tax rate of $0.535 per $100 off assessment and
remains the same as the rate in FY24.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all
those with an interest in the government’s finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the
Finance Department at 101 Lawyers Row, Centreville, Maryland 21617.
13

TOWN OF CENTREVILLE, MARYLAND
Statement of Net Position
As of June 30, 2024
Governmental Business-type
Activities Activities Total
ASSETS
Current assets
Cash and cash equivalents $ 9,287,119 $ 4,881,649 $ 14,168,768
Accounts receivable - taxes 4 43,123 - 443,123
Accounts receivable - accounts - net 6 6,186 1,141,138 1,207,324
Note receivable 9 9,664 - 99,664
Prepaid expenses 2 38,845 - 238,845
Internal balances 5 72,574 ( 572,574) -
Total current assets 10,707,511 5,450,213 16,157,724
Noncurrent assets
Non-depreciable assets 2,877,305 1,340,863 4,218,168
Capital assets, net 7 ,884,393 26,012,481 33,896,874
Total noncurrent assets 10,761,698 27,353,344 38,115,042
Total Assets 21,469,209 32,803,557 54,272,766
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension 901,975 - 901,975
Deferred outflows related to OPEB 127,914 - 127,914
Total Deferred Outflows of Resources 1,029,889 - 1,029,889
LIABILITIES
Current liabilities
Accounts payable 304,615 634,567 939,182
Accrued payroll 206,890 31,637 238,527
Unearned revenue - 837,124 837,124
Current portion of long term liabilities 247,528 702,000 949,528
Total current liabilities 759,033 2,205,328 2,964,361
Noncurrent liabilities
Compensated absences 476,874 - 476,874
Net OPEB liability 336,505 - 336,505
Net pension liability 2,736,819 - 2,736,819
Long term liabilities, net of current portion 2,322,500 7,324,000 9,646,500
Total noncurrent liabilities 5,872,698 7,324,000 13,196,698
Total Liabilities 6,631,731 9,529,328 16,161,059
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension 330,785 - 330,785
Deferred inflows related to OPEB 159,581 - 159,581
Total Deferred Inflows of Resources 490,366 - 490,366
NET POSITION
Net investment in capital assets 8,256,698 19,327,344 27,584,042
Restricted 2,291,508 - 2,291,508
Unrestricted 4,828,795 3,946,885 8,775,680
TOTAL NET POSITION $ 15,377,001 $ 23,274,229 $ 38,651,230
The accompanying notes are an integral part of this financial statement.
14

TOWN OF CENTREVILLE, MARYLAND
Statement of Activities
For the Year Ended June 30, 2024
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Primary Government
Operating
Charges for Grants and Capital Grants and Governmental Business-type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Primary government
Governmental activities:
General government $ 1,386,605 $ 213,744 $ - $ - $ ( 1,172,861) $ - $ ( 1,172,861)
Public safety 3,515,404 - 1 02,064 - ( 3,413,340) - ( 3,413,340)
Public works 2,542,113 395,938 2 71,633 - ( 1,874,542) - ( 1,874,542)
Parks and recreation 164,402 - - - ( 164,402) - ( 164,402)
Cemetery 44,356 - - - ( 44,356) - ( 44,356)
Stormwater/Watershed 51,206 - - - ( 51,206) - ( 51,206)
Centreville wharf 86,034 - - - ( 86,034) - ( 86,034)
Interest 87,958 - - - ( 87,958) - ( 87,958)
Total governmental activities 7,878,078 609,682 3 73,697 - ( 6,894,699) - ( 6,894,699)
Business-type activities
Water, sewer & farm 3,637,484 3,372,605 - - - (264,879) ( 264,879)
Total business-type activities 3,637,484 3,372,605 - - - (264,879) ( 264,879)
Total primary government $ 11,515,562 $ 3,982,287 $ 3 73,697 $ - ( 6,894,699) ( 264,879) ( 7,159,578)
General revenue:
Taxes
Property taxes 3 ,437,065 - 3,437,065
Public utility taxes 1 ,165,850 - 1,165,850
Income taxes 1 ,015,197 - 1,015,197
Interest and investment earnings 5 11,339 40 511,379
Miscellaneous 3 01,962 - 301,962
Total general revenue 6 ,431,413 40 6,431,453
Change in Net Position ( 463,286) ( 264,839) ( 728,125)
Net position, beginning of year 1 5,840,287 23,539,068 39,379,355
Net Position, End of Year $ 1 5,377,001 $ 23,274,229 $ 38,651,230
The accompanying notes are an integral part of this financial statement.
15

TOWN OF CENTREVILLE, MARYLAND
Balance Sheet – Governmental Funds
As of June 30, 2024
Total
Special Revenue Governmental
General Fund Fund Funds
ASSETS
Cash and cash equivalents $ 7,371,782 $ 1,915,337 $ 9,287,119
Accounts receivable - taxes 443,123 - 443,123
Accounts receivable - accounts - net 66,186 - 66,186
Note receivable 99,664 - 99,664
Prepaid expenses 238,845 - 238,845
Due from other fund 572,574 - 572,574
TOTAL ASSETS $ 8,792,174 $ 1,915,337 $ 10,707,511
LIABILITIES
Accounts payable and accrued expenses $ 304,615 $ - $ 304,615
Accrued payroll 206,890 - 206,890
TOTAL LIABILITIES 511,505 - 511,505
DEFERRED INFLOWS OF RESOURCES 134,043 - 134,043
FUND BALANCES
Non-spendable 338,509 - 338,509
Restricted 376,171 1,915,337 2,291,508
Committed 115,451 - 115,451
Unassigned 7,316,495 - 7,316,495
TOTAL FUND BALANCES 8,146,626 1,915,337 10,061,963
TOTAL LIABILITIES, DEFFERED INFLOWS
OF RESOURCES AND FUND BALANCES $ 8,792,174 $ 1,915,337 $ 10,707,511
The accompanying notes are an integral part of this financial statement.
16

TOWN OF CENTREVILLE, MARYLAND
Reconciliation of the Governmental Fund Balance to the Statement
of Net Position
As of June 30, 2024
Total Governmental Fund Balances $ 10,061,963
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the fund statement. 10,761,698
Receivables pertaining to revenues that are not available in accordance
with modified accrual accounting are reported as deferred inflows
of resources in the funds. 134,043
Deferred inflows and outflows of resources related to pension and OPEB. 539,523
Long-term liabilities, including bonds and notes not due and payable in
the current period and payable, OPEB, and compensated absences,
are not reported in the funds. (6,120,226)
Net Position of Governmental Activities $ 15,377,001
The accompanying notes are an integral part of this financial statement.
17

TOWN OF CENTREVILLE, MARYLAND
Statement of Revenue, Expenditures, and Change in Fund Balance – Governmental Fund
For the Year Ended June 30, 2024
Total
Special Governmental
General Fund Revenue Fund Funds
REVENUE
Property taxes $ 4,602,915 $ - $ 4,602,915
Local income taxes 1,284,019 - 1,284,019
Intergovernmental revenue 373,697 - 373,697
Licenses and permits 112,843 - 112,843
Charges for services 496,839 - 496,839
Miscellaneous revenue:
Other 301,962 - 301,962
Investment earnings 412,070 99,269 511,339
Total Revenues 7,584,345 99,269 7,683,614
EXPENDITURES
General government 1,433,712 - 1,433,712
Public safety 1,973,453 - 1,973,453
Public works 1,721,336 - 1,721,336
Parks and recreation 132,451 - 132,451
Cemetery 41,619 - 41,619
Storm water/watershed 11,811 - 11,811
Centreville wharf 55,104 - 55,104
Capital outlays 186,063 - 186,063
Debt service
Principal 674,730 - 674,730
Interest 87,958 - 87,958
Total Expenditures 6,318,237 - 6,318,237
Excess of Revenues Over (Under)
Expenditures and Other Financing Uses 1,266,108 99,269 1,365,377
Fund balance, beginning of year 6,880,518 1,816,068 8,696,586
Fund Balance, End of Year $ 8,146,626 $ 1,915,337 $ 10,061,963
The accompanying notes are an integral part of this financial statement.
18

TOWN OF CENTREVILLE, MARYLAND
Reconciliation of the Statement of Revenue, Expenditures, and Change in Fund Balance –
Governmental Fund to the Statement of Activities
For the Year Ended June 30, 2024
Net Change in Fund Balances - Total Governmental Fund $ 1,365,377
Governmental funds report capital outlays as expenditures. However,
in the statement of activities, the cost of these assets is allocated over their
estimated useful lives as depreciation expense: this is the amount by which
depreciation exceeded capital outlays in the current period and loss on
disposal of capital assets. (767,908)
Pension/OPEB expense pertaining to the net pension/OPEB liability,
deferred inflows, and deferred outflows are not reported in the funds. (187,753)
Revenue in the statement of activities that do not provide current
financial resources are not reported as revenue in the funds. (268,822)
Some expenses representing the change in long-term liabilities or
assets reported in the Statement of Activities, including compensated
absences, do not use current financial resources
and are not reported as expenditures in the governmental funds. 70,550
Repayment of debt principal is an expenditure in the governmental
funds, but the repayment reduces long-term liabilities in the Statement
of Net Position. (674,730)
Change in Net Position of Governmental Activities $ (463,286)
The accompanying notes are an integral part of this financial statement.
19

TOWN OF CENTREVILLE, MARYLAND
Statement of Net Position – Proprietary Fund
As of June 30, 2024
Enterprise
ASSETS Fund
Current assets
Cash and cash equivalents $ 4,881,649
Accounts receivable 1,141,138
Total current assets 6,022,787
Non-current assets
Capital assets, net 27,353,344
TOTAL ASSETS 33,376,131
LIABILITIES
Current liabilities
Accounts payable 634,567
Accrued payroll expense 31,637
Unearned revenue 837,124
Due to other fund 572,574
Current portion of long-term debt 702,000
Total current liabilities 2,777,902
Noncurrent liabilities
Long-term debt, net of current liabilities 7,324,000
TOTAL LIABILITIES 10,101,902
NET POSITION
Net investment in capital assets 19,327,344
Unrestricted 3,946,885
TOTAL NET POSITION $ 23,274,229
The accompanying notes are an integral part of this financial statement.
20

TOWN OF CENTREVILLE, MARYLAND
Statement of Revenue, Expenses and Change in Fund Net Position – Proprietary Fund
For the Year Ended June 30, 2024
Enterprise
Fund
Operating Revenue
Charges for services $ 3,372,605
Operating Expenses
Salaries and benefits 517,891
Contractual services 961,860
Chemicals, labs and operating supplies 337,262
Utilities 333,615
Repairs and maintenance 276,993
Other operating 99,391
Depreciation 822,748
Total Operating Expenses 3,349,760
Operating Income 22,845
Non-Operating Revenue (Expenses)
Investment earnings 40
Interest expense (235,112)
Other non-operating expenses (52,612)
Net Non-Operating Revenue (Expenses) (287,684)
Change in Net Position (264,839)
Total net position, beginning of year 23,539,068
Total Net Position, End of Year $ 23,274,229
The accompanying notes are an integral part of this financial statement.
21

TOWN OF CENTREVILLE, MARYLAND
Statement of Cash Flows – Proprietary Fund
For the Year Ended June 30, 2024
Enterprise
Funds
Cash Flows from Operating Activities
Cash received from customers $ 3,154,029
Cash paid to suppliers, services etc. (1,876,304)
Cash paid to employees (524,941)
Net Cash from Operating Activities 752,784
Cash Flows from Capital and Related Financing Activities
Acquisition of capital assets (152,181)
Principal paid on debt (1,233,549)
Loan administrative fees (52,612)
Interest paid on capital debt (235,112)
Net Cash from Capital and Related Financing Activities (1,673,454)
Cash Flows from Noncapital Financing Activities
Receipts from other funds 1,022,376
Cash Flows from Investing Activities
Interest and dividends 40
Net Change in Cash and Cash Equivalents 101,746
Cash and cash equivalents, beginning of year 4,779,903
Cash and Cash Equivalents, End of Year $ 4,881,649
Reconciliation of Operating Income to Net Cash from Operating Activities
Operating income $ 22,845
Adjustments to reconcile operating loss to net cash from operating activities:
Depreciation expense 822,748
Changes in assets and liabilities:
Change in accounts receivable (197,063)
Change in accounts payable and accrued expenses 125,767
Change in unearned revenue (21,513)
Net Cash from Operating Activities $ 752,784
The accompanying notes are an integral part of this financial statement.
22

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Reporting Entity
The Town of Centreville, Maryland (the Town) operates under a Council-Manager form of
government. The Town’s major operations include public safety, parks and recreation,
public works, public cemetery, stormwater and watershed management, and general
administrative services. In addition, the Town owns and operates a water and sewer system
including a farm for spray irrigation.
The accounting policies of the Town conform to generally accepted accounting principles as
applicable to governments. The following is a summary of the more significant policies.
In evaluating how to define the Town, for financial reporting purposes, management has
considered all potential component units. The decision to include a potential component unit
in the reporting entity was made by applying the criteria set by the Governmental Accounting
Standards Board. Component units are legally separate organizations for which the elected
officials of the Town are financially accountable and a financial benefit or burden
relationship exists. In addition, component units can be other organizations for which the
nature and significance of their relationship with the Town are such that exclusion would
cause the Town’s financial statements to be misleading. Based upon the application of
criteria set by the Governmental Accounting Standards Board, there are no separate
component units of the Town.
Basis of Presentation – Fund Accounting
The accounting system is organized and operated on a fund basis. A fund is defined as a
fiscal and accounting entity with a self-balancing set of accounts, which are segregated for
the purpose of carrying on specific activities or attaining certain objectives in accordance
with special regulations, restrictions, or limitations.
The Town’s funds are grouped into two broad fund categories.
Governmental funds include the General Fund, Special Revenue Fund, and Capital Projects
Fund. The General Fund is the general operating fund of the Town. It is used to account for
all financial resources except those required to be accounted for in another fund. The Special
Revenue Fund is an investment fund in that only the fund’s investment earnings may be used
to support the government’s programs, without approval from the citizens of the government.
The Special Revenue Fund’s principal can be used upon approval by the citizens of the
government. The Capital Project Fund is to be used to account for capital outlays financed by
general obligation debt for the acquisition or construction of major capital facilities.
23

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Basis of Presentation – Fund Accounting (continued)
The Proprietary Fund includes the Enterprise Fund. The Enterprise Fund is used to account
for operations that are financed and operated in a manner similar to private business
enterprises. The intent of the governing body is that the costs (expenses, including
depreciation) of providing goods or services to the general public on a continuing basis be
financed or recovered primarily through user charges. The Town operates one Enterprise
Fund: the Water and Sewer Fund.
Basis of Accounting - Government-Wide Financial Statements
The statement of net position and the statement of activities display information about the
Town, the primary government, as a whole. These statements distinguish between activities
that are governmental and those that are considered business-type activities.
The government-wide statements are prepared using the economic resources measurement
focus and the accrual basis of accounting, including the reclassification or elimination of
internal activity (between funds). This is the same approach used in the preparation of the
proprietary fund financial statements but differs from the manner in which governmental
fund financial statements are prepared. Therefore, governmental fund financial statements
include a reconciliation with brief explanations to better identify the relationship between the
government-wide statements and the statements for governmental funds.
The government-wide statement of activities presents a comparison between expenses and
program revenue for each segment of the business-type activities of the Town and for each
governmental program. Direct expenses are those that are specifically associated with a
service, program or department and are therefore clearly identifiable to a particular function.
Indirect costs are allocated to programs. When both restricted and unrestricted resources are
available for use, it is the Town’s policy to use restricted resources first, then unrestricted
resources as needed. Program revenue include charges paid by the recipients of the goods or
services offered by the programs, grants, and contributions that are restricted to meeting the
operational or capital requirements of a particular program. Revenue which is not classified
as program revenue is presented as general revenue. The comparison of program revenues
and expenses identifies the extent to which each program or business segment is self-
financing or draws from the general revenues of the Town. Net position should be reported
as restricted when constraints placed on net position and the use is either externally imposed
by creditors (such as through debt covenants), grantors, contributors, or laws or regulations
of other governments or imposed by law through constitutional provisions or enabling
legislation.
24

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Fund Financial Statements
Fund financial statements report detailed information about the Town. The focus of
governmental and enterprise financial statements is on major funds rather than reporting
funds by type. Each major fund is presented in a separate column. Nonmajor funds, if any,
are aggregated and presented in a single column.
Governmental Funds
Town activities pertaining to general government, public safety, public works, recreation,
and culture are reported in the governmental funds. All governmental funds are accounted
for using modified accrual basis of accounting and the current financial resources
measurement focus. Under this basis, revenue is recognized in the accounting period in
which it becomes measurable and available. Expenditures are recognized in the accounting
period in which the fund liability is incurred, if measurable.
Revenue Recognition
In applying the susceptible to accrual concept under the modified accrual basis, the following
revenue sources are deemed both measurable and available (i.e. collectible within the current
year or within two months of year-end and available to pay obligations of the current period).
These include property taxes, franchise taxes, investment earnings, charges for services and
intergovernmental revenue.
Some revenue, though measurable, is not available soon enough in the subsequent year to
finance current period obligations. Therefore, some revenue is recorded as receivables and
deferred inflows of resources.
Other revenue, including licenses and permits, certain charges for services, and
miscellaneous revenue, is recorded as revenue when received in cash because it is generally
not measurable until actually received.
Expenditure Recognition
The measurement focus of governmental fund accounting is on decreases in net financial
resources/(expenditures) rather than expenses. Most expenditures are measurable and are
recorded when the related fund liability is incurred. However, principal and interest on
general long-term debt, which has not matured, are recognized when paid.
Allocations of costs, such as depreciation and amortization, are not recognized in the
governmental funds.
25

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Proprietary Fund
The Town’s water and sewer activities are reported in the proprietary fund. The proprietary
fund is accounted for using the accrual basis of accounting. This fund accounts for
operations that are primarily financed by user charges. The economic resource focus
concerns determining costs as a means of maintaining the capital investment and
management control. Revenue is recognized when earned and expenses are recognized when
incurred. Allocations of costs, such as depreciation, are recorded in proprietary funds.
Operating revenue is comprised primarily of charges for services and non-operating revenue
is comprised primarily of interest and investment earnings.
Cash and Cash Equivalents
The Town’s cash and cash equivalents are considered to be cash on hand, demand deposits
and short-term investments with original maturities of three months or less from the date of
acquisition.
Receivables
Receivables are stated at cost with an allowance for doubtful accounts when, in the opinion
of Town management, collection is doubtful.
Receivables at June 30, 2024 consist of taxes, grants, accounts (billings for user charged
services, including utility services), special assessments, and accrued interest on investments.
The Town calculates its allowance for uncollectible accounts using historical collection data,
and in certain cases, specific account analysis. The allowance for uncollectible accounts in
the general fund amounted to $130,716 as of June 30, 2024.
Inventory of Supplies
Inventories, if any, are stated at cost on the first-in, first-out basis. The costs of inventory
items are recorded as expenditures in the governmental type funds and expenses in the
proprietary type funds when used.
26

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Capital Assets and Depreciation
Capital assets, which include property, plant, equipment and infrastructure assets including
roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems,
and similar items are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. The Town defines capital assets as
assets with an initial individual cost of $5,000 or more and an estimated useful life in excess
of one year. The valuation basis for general capital assets is historical cost, or where
historical cost is not available, estimated historical cost based on replacement cost. Donated
capital assets are capitalized at estimated fair market value on the date donated. The Town
recognizes intangible assets if identifiable and are amortized over their useful lives if they do
not have indefinite useful lives.
The costs of normal maintenance and repairs that do not add value to the asset or materially
extend asset lives are not capitalized. Major outlays for capital assets and improvements are
capitalized as projects are constructed. Property and equipment are not reported in
governmental funds. In the fund financial statements, the cost of assets acquired in the
governmental funds is charged to the capital outlay expenditures of the department financing
the acquisition. Depreciation is not reported in governmental funds.
Capital assets are depreciated using the straight-line method over the following estimated
useful lives:
Infrastructure 10-50 years
Land improvements 10-30 years
Buildings 20-50 years
Building improvements 10-40 years
Machinery and equipment 5-15 years
Water and sewer system 5-50 years
Vehicles 5-10 years
Restricted Reserves
The Town uses restricted resources first when an expense is incurred for purposes for which
both restricted and unrestricted net position is available.
Deferred Outflows and Inflows of Resources
A deferred outflow of resources represents a consumption of net position that applies to a future
period and so will not be recognized as an outflow of resources (expense/expenditure) until then.
Likewise, a deferred inflow of resources represents an acquisition of net position that applies to a
future period and so will not be recognized as an inflow of resources (revenue) until that time.
27

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Interest Expense
Interest is expensed as incurred except when interest is incurred during the construction period,
and is capitalized as part of the cost of the asset.
Compensated Absences
Permanent full-time employees are granted vacation benefits in varying amounts up to specified
maximums, depending on tenure with the Town. Sick leave balances can be accumulated up to
the maximum allowable per calendar year of 480 hours. An employee is entitled to receive
payment for all unused vacation and 50% of the sick leave upon termination. The estimated
current portion of the liability for vested vacation and sick leave benefits attributable to the
Town’s governmental funds is recorded as an expenditure and liability in the respective funds.
All vacation pay is accrued when incurred in the government-wide and proprietary fund financial
statements.
Estimates
Management uses estimates and assumptions in preparing financial statements in accordance
with accounting principles generally accepted in the United States of America. Those estimates
and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities and the reported revenue, expenditures, and expenses. Actual results could
vary from the estimates that were used.
Equity Classifications
Equity is classified as net position and is displayed in three components:
Net investment in capital assets – Consists of capital assets, net of accumulated depreciation and
reduced by the outstanding balances of any bonds, notes, or other borrowings, and reduced or
increased by deferred inflows and outflows attributable to the acquisition, construction or
improvement of those assets.
Restricted net position – Consists of net position with constraints placed on their use either
by 1) external groups, such as creditors, grantors, contributors, or laws or regulations of other
governments; or 2) law through constitutional provisions or enabling legislation and are
reduced by liabilities and deferred inflows of resources related to those constraints.
Unrestricted net position – The remaining net position that does not meet the definition of
“restricted” or “net investment in capital assets.”
When both restricted and unrestricted resources are available for use, it is the Town’s policy
to use restricted resources first and then unrestricted resources as needed.
28

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Governmental Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:
1. Non-Spendable Fund Balance – amounts that cannot be spent either because they are in
a non-spendable form or because they are legally or contractually required to be
maintained intact.
2. Restricted Fund Balance – amounts that can be spent only for specific purposes because
of restrictions imposed externally by creditors (such as through debt covenants), grantors,
contributors or laws or regulations of other governments or imposed by the Town
Charter, Town Code or enabling legislation.
3. Committed Fund Balance – amounts that can be used only for specific purposes
determined by a formal action by Town Council, the Town’s highest level of decision-
making authority, ordinance or resolution.
4. Assigned Fund Balance – amounts that are constrained by the Town’s intent that they
will be used for specific purposes but are neither restricted nor committed. Pursuant to
the Town Charter, the Town Manager and the Town Council are authorized to assign
amounts for specific purposes.
5. Unassigned Fund Balance – all amounts not included in other spendable classifications.
The Town considers restricted fund balances to be spent for governmental expenditures first
when both restricted and unrestricted resources are available. The Town also considers
committed fund balances should be spent first when other unrestricted fund balance
classifications are available for use.
Budget Requirements, Accounting, and Reporting
An annual budget is adopted for the Town’s General fund. At least 32 days prior to July 1 of
each year, the Council is presented with a proposed budget. The Town Council may
subsequently amend the budget, and the budget was amended during fiscal year 2024. For
day-to-day management control, expenditures may not exceed budget at the department
level. The department manager has the authority to apply amounts within the department, so
long as the total appropriation for a department is not adjusted. All annual appropriations
lapse at year-end. The Town prepares an annual operating budget on a basis consistent with
generally accepted accounting principles.
29

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
2. DEPOSITS AND INVESTMENTS
Deposit Policies
The Town’s authority to invest surplus cash is derived directly from State law. That law
restricts investments to: deposits in financial institutions insured by the Federal Depository
Insurance Corporation (FDIC), U.S. Treasury and Agency securities, collateralized repurchase
agreements, guaranteed bankers acceptances and the Maryland Local Government Investment
Pool.
The Town’s deposits are insured or collateralized with securities held by the Town, its agent, or
by the pledging financial institution’s trust department, or agent in the name of the Town.
Deposits
Custodial credit risk for deposits is the risk that in the event of a bank failure, the Town’s
deposits may not be returned, or the Town will not be able to recover collateral securities in
the possession of an outside party. The Town’s policy requires deposits to be insured by
FDIC, and balances exceeding FDIC limits be secured by collateral. Collateral is to be held
by the Town, its agent, or by the pledging financial institution’s trust department or agent in
the name of the Town.
As of June 30, 2024, the carrying amounts of the Town’s deposits were $14,168,768 and the
bank balances totaled $14,198,006. Of the bank balances, $250,000 was insured by FDIC.
Shore United Bank (SUB) has issued an irrevocable letter of credit for $10 million, balances
maintained above the letter of credit limit are covered by securities held by SUB pledged to
secure the Town’s deposits. All certificates of deposits are investments. At year-end, the
Town’s bank balances were not exposed to any custodial credit risk because all deposits were
fully insured or collateralized.
Investment Policies
Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations.
Interest Rate Risk is the risk that changes in interest rates will adversely affect the fair value
of an investment. Investments held for longer periods are subject to increased risk of adverse
interest rate changes. The Town does not have a policy relating to interest rate risk.
Concentration of Credit Risk is the risk of loss attributed to the magnitude of the Town’s
investment in a single issuer. The Town’s policy requires deposits to be insured by FDIC, and
balances exceeding FDIC limits be secured by collateral. Collateral is to be held by the Town,
its agent, or by the pledging financial institution’s trust department or agent in the name of the
Town.
30

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
2. DEPOSITS AND INVESTMENTS (continued)
Investment Policies (continued)
For investments, custodial credit risk is the risk that, in the event of the failure of the
counterparty, the Town will not be able to recover the value of its investments or collateral
securities in the possession of an outside party. Town policy provides that investment collateral
is held by a third-party custodian with whom the Town has a current custodial agreement in the
Town’s name.
Generally, the Town’s investing activities are managed by the Clerk-Treasurer and the Town
Council. Investing is performed in accordance with investment policies adopted by the Town
Council complying with State Statutes and the Town Charter. Town funds may be invested
in: 1) Direct obligations of, or obligations insured or guaranteed by, the United States of
America; 2) Bonds, debentures, notes, or other evidences of indebtedness issued by Bank of
Cooperatives, Federal Intermediate Credit Banks, Federal Home Loan Bank System, Export-
Import Bank of the United States, Federal Land Banks, Government National Mortgage
Association, Tennessee Valley Authority, and Washington Metropolitan Area Transit
Authority; and 3) Time deposits or certificates of deposit secured by obligations described in
1 or 2 above.
3. ACCOUNTS RECEIVABLE – TAXES
As of June 30, 2024, due from other governments, a component of taxes receivable, was
comprised of local income tax due from the State of Maryland for $443,123.
4. INTERFUND TRANSFERS AND BALANCES
Generally, outstanding balances between funds, reported as “due to/from other funds,”
include outstanding charges by one fund to another for services or goods, subsidy
commitments outstanding at year-end, and other miscellaneous receivables/payables between
funds. Activity between funds that are representative of lending/borrowing arrangements
outstanding as of the end of the fiscal year are described as due to/from other funds.
Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as “internal balances.”
31

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
4. INTERFUND TRANSFERS AND BALANCES (continued)
The following schedule reports receivables and payables within the reporting entity as of
fiscal year-end:
Due from Due to Other
Other Funds Funds
Governmental activities
General fund $ 572,574 $ -
Business-type activities $ - $ 572,574
5. PROPERTY TAX
Real estate and personal property taxes are levied based on the State of Maryland
assessments. Property taxes include amounts levied against all real and public utility property
located in the Town. Real property taxes are levied on the first day of July on the assessed
value. When taxes are overdue, a lien is placed against the property. Taxes are due and
payable on the first day of July in the year for which they are levied and become overdue and
in arrears on the first day of the following October. Penalties and interest are charged on any
unpaid taxes. The property tax rate for fiscal year 2024 was $0.535 per $100 of assessed
value for real property, and the public utility property tax of $13.00 per $100 of assessed
value. The Town has no personal property taxes.
6. CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the governmental activity for the year ended June 30, 2024 was as
follows:
Balance Balance
June 30, 2023 Increases Decreases June 30, 2024
Governmental Activities
Not being depreciated:
Land $ 2,877,305 $ - $ - $ 2,877,305
Depreciable capital assets:
Buildings and improvements 19,745,592 - - 19,745,592
Equipment 2,406,922 217,265 9,500 2,633,687
Subtotal 22,152,514 217,265 9,500 22,379,279
Total capital assets 25,029,819 217,265 9,500 25,256,584
Accumulated depreciation:
Buildings and improvements 11,710,022 818,162 - 12,528,184
Equipment 1,790,191 167,011 9,500 1,966,702
Subtotal, accumulated depreciation 13,500,213 985,173 9,500 14,494,886
Total Capital Assets, Net $ 11,529,606 $ ( 767,908) $ - $ 10,761,698
32

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
6. CAPITAL ASSETS AND DEPRECIATION (continued)
Depreciation expense was charged to governmental functions as follows:
General government $ 75,039
Public safety 101,671
Public works 726,113
Parks and recreation 26,739
Stormwater/watershed 36,095
Centreville Wharf 19,516
Total $ 985,173
Capital asset activity for the business-type activity for the year ended June 30, 2024 was as
follows:
Balance Balance
June 30, 2023 Increases Decreases June 30, 2024
Business-type Activities
Not being depreciated:
Land $ 1,340,863 $ - $ - $ 1,340,863
Depreciable capital assets:
Buildings and improvements 38,192,855 - - 38,192,855
Equipment 1,154,884 152,181 - 1,307,065
Subtotal 39,347,739 152,181 - 39,499,920
Total capital assets 40,688,602 152,181 - 40,840,783
Accumulated depreciation:
Buildings and improvements 11,654,551 702,513 - 12,357,064
Equipment 1,010,140 120,235 - 1,130,375
Subtotal, accumulated depreciation 12,664,691 822,748 - 13,487,439
Total Capital Assets, Net $ 28,023,911 $ (670,567) $ - $ 27,353,344
7. LONG-TERM DEBT
Governmental Activities
Bond payable, Community Development Administration Local Government Infrastructure
Bonds 2012 Series A (Ambac Insured); payable in annual installments beginning May 1,
2013; interest at 3.562%; interest paid on unpaid principal installment amounts due and
payable in semiannual payments commencing November 1, 2012; thereafter due first day of
May and November each year; thereafter until maturity; the term for this obligation is 20
years. The principal balance was paid off during the year ended June 30, 2024.
Bond payable, Community Development Administration Local Government Infrastructure
Bonds 2016 Series A-1 and A-2; payable in annual installments beginning October 1, 2016,
including principal and interest at 2.54%; final payment due April 1, 2036. The principal
balance outstanding at June 30, 2024 was $2,505,000.
33

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
7. LONG-TERM DEBT (continued)
Business-Type Activities
Bond payable, Water Quality State Revolving Fund Bond, Series 2009 American Recovery
and Reinvestment Act (ARRA), payable in annual installments beginning February 1, 2011;
interest at 1%; interest paid on the unpaid principal amounts advanced under the loan
agreement started on August 1, 2010 and semi-annually thereafter on the first day of August
and February each year through February 2027; maximum principal amount of loan
commitment is $2,281,000. Final principal amount advanced was $1,812,481. An annual fee
of $6,318 is paid by the town to MDE for administering the loan. The principal balance was
paid off during the year ended June 30, 2024.
Bond payable, Community Development Administration Local Government Infrastructure
Bonds 2012 Series A (Ambac Insured); payable in annual installments beginning May 1,
2013; interest at 3.562%; interest paid on unpaid principal installment amounts due and
payable in semiannual payments commencing November 1, 2012; thereafter due first day of
May and November each year; thereafter until maturity; the term for this obligation is 20
years. The principal balance was paid off during the year ended June 30, 2024.
Bond payable, Community Development Administration Local Government Infrastructure
Bonds 2016 Series A-1 and A-2; payable in annual installments beginning October 1, 2016,
including principal and interest at 2.54%; final payment due April 1, 2036. The principal
balance outstanding at June 30, 2024 was $2,505,000.
Bond payable, Community Development Administration Local Government Infrastructure
Bonds 2017 Series A-1 and A-3; payable in annual installments beginning April 1, 2018;
interest at 2.23%; interest paid on unpaid principal installment amounts due and payable in
semiannual payments commencing October 1, 2017; thereafter due first day of April and
October each year; thereafter until maturity; the term for this obligation is 10 years. The
principal balance outstanding at June 30, 2024 was $5,521,000.
The changes in long-term liabilities during the year ended June 30, 2024 were as follows:
Business
Activities Governmental Activities
Water and General Long- Compensated Net OPEB Net Pension
Sewer Fund term Debt Absences Liability Liability Total
Beginning balance, July 1, 2023 $ 9,259,549 $ 3,179,730 $ 4 71,352 $ 3 22,858 $ 9 10,798 $ 14,144,287
Increase - - 7 0,550 1 3,647 1 ,826,021 1,910,218
Decrease (1,233,549) (674,730) - - - (1,908,279)
Ending balance, June 30, 2024 $ 8,026,000 $ 2,505,000 $ 5 41,902 $ 3 36,505 $ 2 ,736,819 $ 14,146,226
Amounts due in one year $ 702,000 $ 182,500 $ 6 5,028 $ - $ -
34

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
7. LONG-TERM DEBT (continued)
Business-Type Activities (continued)
Long-term debt service requirements are as follows:
Governmental Activities
For the Years Ending June 30, Principal Interest Total
2025 $ 1 82,500 $ 65,228 $ 247,728
2026 1 87,500 61,632 249,132
2027 1 92,500 57,659 250,159
2028 1 95,000 53,287 248,287
2029 2 00,000 48,570 248,570
2030-2034 1 ,075,000 161,322 1,236,322
2035-2036 4 72,500 20,804 493,304
Total $ 2 ,505,000 $ 468,502 $ 2,973,502
Business Activities
For the Years Ending June 30, Principal Interest Total
2025 $ 7 02,000 $ 248,296 $ 950,296
2026 7 18,000 232,934 950,934
2027 7 37,000 215,884 952,884
2028 3 80,500 194,905 575,405
2029 3 90,000 184,530 574,530
2030-2034 2 ,116,000 748,565 2,864,565
2035-2039 1 ,492,000 426,665 1,918,665
2040-2044 8 76,000 233,827 1,109,827
2045-2047 6 14,500 50,382 664,882
Total $ 8 ,026,000 $ 2,535,988 $ 10,561,988
Interest expense was $87,958 and $235,112, for the governmental activities and the business-
type activities, respectively, for the year ended June 30, 2024.
8. FUND BALANCE REPORTING
Fund balances for the Town’s governmental funds consisted of the following as of June 30,
2024:
Non-Spendable Fund Balance
As of June 30, 2024, non-spendable fund balance was $338,509 pertaining to notes
receivable and prepaids in the general fund.
35

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
8. FUND BALANCE REPORTING (continued)
Restricted Fund Balance
As of June 30, 2024, restricted fund balance was $376,171 related to perpetual care in the
general fund and $1,915,337 in the special revenue fund.
Committed Fund Balance
As of June 30, 2024, committed fund balance was $115,451 to revolving housing funds in the
general fund.
Unassigned Fund Balance
Unassigned fund balance totaled $7,316,495 in the general fund.
9. RETIREMENT PLAN
The Town participates in the Maryland State Retirement and Pension System (the System)
described below and qualifies as a Participating Governmental Unit (PGU). The State
Retirement Agency (the Agency) is the Plan administrator and fiduciary. Governmental
Accounting Standards Board (GASB) Statement No. 68 requires that a PGU recognizes its
proportionate share of the System’s net pension liability (i.e., unfunded pension liability) and
pension expense. The Town’s proportionate share of the net pension liability is based on total
System contributions and approximates $2,736,819 as of the measurement date of June 30,
2023.
The Town’s fiscal 2024 contribution of $289,830 is therefore recognized as a pension-related
deferred outflow of resources.
Description of Plan
The State of Maryland identifies multiple-employer defined benefit pension plans as cost-
sharing plans.
The Employees’ Pension System of the State of Maryland (Pension System) was established
January 1, 1980. The Pension System covers employees hired after December 31, 1979, as
well as Retirement System participants who have voluntarily joined the Pension System. The
Employees Contributory Pension System of the State of Maryland (Contributory Pension
System) was established July 1, 1998. The Town elected to participate in the Contributory
Pension System during fiscal year 2010.
36

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
9. RETIREMENT PLAN (continued)
Description of Plan (continued)
Under the terms of the Contributory Pension System, a member hired may retire with full
benefits upon attaining age 60 or after completing 30 years of eligible service regardless of
age. A member may retire with reduced benefits prior to attaining age 60 after completing
25 years of eligible service. A member terminating employment before attaining retirement
age, but after completing five years of eligible service, becomes eligible for a vested
retirement allowance upon age 60.
Under the terms of the Contributory Pension System, a member hired before July 1, 2011
may retire after 30 years of service regardless of age; at age 65 with two years of service; at
age 64 with three years of service; at age 63 with four years of service; or at age 62 with at
least five years of service. An employee hired before July 1, 2011 may also take early
retirement with reduced benefits at age 55 with 15 years of service. A member hired before
July 1, 2011 terminating employment before attaining retirement age, but after completing
five years of eligible service, becomes eligible for a vested pension allowance upon reaching
age 62. Members hired on or after July 1, 2011 may retire when their age and years of
eligibility service totals 90 years or at age 65 with 10 years of eligibility service. Members
hired on or after July 1, 2011 may retire with reduced benefits at age 60 with 15 years of
eligibility service. A member hired on or after July 1, 2011 terminating employment before
attaining retirement age, but after completing ten years of eligible service becomes eligible
for a vested pension allowance upon reaching age 65.
On retirement from service, a member of any of these plans shall receive an annual service
retirement allowance based on the member’s average final compensation and years of
creditable service multiplied by a factor. This factor varies from 1.2% to 2.0% per eligible
service year depending on employee/employer contributions and other plan-specific
provisions. Early retirement, where available, is subject to provisions that reduce the benefit
received.
Benefits are established under the State Personnel and Pensions Article of the Annotated
Code of Maryland. The plan is administered by the Maryland State Retirement Agency.
The Pension System issues annual financial statements which are publicly available at
www.sra.state.md.us or may be obtained by writing to the State Retirement and Pension
System of Maryland, 301 West Preston Street, Baltimore, MD 21201, or by calling 1-800-
492-5909.
37

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
9. RETIREMENT PLAN (continued)
Funding Policy
Obligations to contribute to the plans are under the Annotated Code of Maryland. Members
of the pension plan contribute 10% of annual compensation during employment. The
required contribution rate is determined on an actuarially determined basis. During the year
ended June 30, 2024, the Town contributed $289,830. The Town contributed 100% of its
required contribution for the year ended June 30, 2024. For members of the pension plan, full
service pension allowances equal 2% of average final compensation (AFC) up to a maximum
benefit of 60% of AFC (30 years of credit).
Actuarial Assumptions
The key actuarial assumptions used to perform the June 30, 2024 pension liability calculation
are as follows:
Actuarial Method Entry Age Normal
Amortization Method Level Percentage of Payroll
Inflation 2.25% general, 2.75% wage
Salary Increase 2.75% to 11.25%
Investment Rate of Return 6.80%
Mortality rates were based on the Pub-2010 Mortality Tables with generational
mortality projections using scale MP-2018, calibrated to MSRPS experience.
Investments
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for
each major asset class. These ranges are combined to produce the long-term expected rate of
return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. Best estimates of geometric real rates of return
were adopted by the Pension System’s Board after considering input from the investment
consultant(s) and actuary(s). For each major asset class that is included in the Pension
System’s target asset allocation, these best estimates are summarized in the following table:
Long-Term Expected Real
Asset Class Target Allocations Rate of Return
Public equity 34% 6.90%
Rate sensitive 20% 2.60%
Credit/Debt related 9% 5.60%
Real assets 15% 5.40%
Absolute return 6% 6.00%
Private equity 16% 8.60%
Total 100%
38

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
9. RETIREMENT PLAN (continued)
Discount Rate
A single discount rate of 6.80% was used to measure the total pension liability. The single
discount rate was based on the expected rate of return on pension plan investments of 6.80%.
The projection of cash flows used to determine this single discount rate assumed that plan
member contributions will be made at the current contribution rate and that employer
contributions will be made a rate equal to the difference between actuarially determined
contribution rates and the member rate. Based on these assumptions, the pension plan’s
fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
Sensitivity of the Net Pension Liability
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the
following presents the System’s net pension liability and the Town’s proportionate share of
the System’s net pension liability, calculated using a single discount rate of 6.80%, a single
discount rate that is 1-percentage point lower (i.e., 5.80%), and a single discount rate that is
1-percentage point higher (i.e., 7.80%).
1.0% Decrease Current Rate 1.0% Increase
(5.80%) (6.80%) (7.80%)
Net Pension Liability $ 4,058,149 $ 2,736,819 $ 1,640,344
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
As of June 30, 2024, the Town reported a liability of $2,736,819 for its proportionate share of
the net pension liability. The net pension liability was measured as of June 30, 2023 and the
total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. The Town’s proportion of the net pension liability was
based on a projection of the Town’s long-term share of contributions to the pension plan
relative to the projected contributions of all participating governmental units, actuarially
determined.
39

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
9. RETIREMENT PLAN (continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions (continued)
For the year ended June 30, 2024, the Town recognized pension expense of $52,674. As of
June 30, 2024, the Town reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
Change of assumptions $ 188,092 $ 9,717
Change in proportionate share 46,732 204,236
Net difference between projected and actual earnings
on pension plan investments 244,805 -
Difference between actual and expected experience 96,191 116,832
Contributions subsequent to the measurement date 326,155 -
Total $ 901,975 $ 330,785
Amounts reported as deferred outflows of resources and deferred inflows of resources are
related to pension, which will be recognized in pension expense as follows:
Year Total
2025 $ 12,829
2026 12,829
2027 (10,103)
2028 138,375
2029 43,725
Thereafter 47,380
Total $ 245,035
10. OTHER POST-EMPLOYMENT BENEFITS
The Town provides a post-employment medical insurance benefit and a prescription health
reimbursement expense account to employees who retire from employment with a minimum
of twenty-five years of service. These post-employment benefits are subject to change at any
time. The Town has not yet established a formal policy, has not restricted any funds for the
Plan, nor set up a trust to pay benefits. Currently, the employer’s contributions are financed
on a pay-as-you-go basis, and the future payment of these benefits is contingent upon the
annual approval of the operating budget.
40

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
10. OTHER POST EMPLOYMENT BENEFITS (continued)
The Town offers post-retirement health care benefits to employees who retire from the Town
under normal or early retirement provisions of the pension plan. The health care benefits are
provided until the retiree is eligible for Medicare. Retirees who exercise the one-time option
for the health care benefits pay one-half of the estimated cost of the benefits. The Town pays
the remaining cost as part of its self-insurance program. Currently, five retirees are receiving
benefits and thirty-five employees are active plan members. Expenditures for postretirement
health care benefits are recognized as retirees report claims and include a provision for
estimated claims incurred but not yet reported.
The Town offered a special termination benefit to employees that retired between July 1,
1995 and September 30, 1995. Those employees are receiving health care benefits (managed
care program) from the date of retirement until they are eligible for Medicare or turn 65. One
former employee is receiving this benefit.
Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates
are made about the future. The schedule of funding progress, presented as required
supplementary information following the notes to the financial statements, presents multi-
year trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
Net OPEB Liability
The net OPEB liability is equal to the total OPEB liability minus the net position of the plan.
The result as of June 30, 2024 is as follows:
Total OPEB liability $ 336,505
Net position -
Net OPEB liability $ 336,505
Net position as a percentage of total OPEB liability is 0%.
41

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
10. OTHER POST EMPLOYMENT BENEFITS (continued)
Actuarial Methods and Assumptions: Projections of benefits for financial reporting purposes
are based on substantive plan (the plan as understood by the employer and the plan members)
and includes the type of benefits provided at the time of each valuation and the historical
pattern of sharing the benefit costs between the employer and plan members to that point.
The actuarial methods and assumptions used include techniques that are designed to reduce
the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
This plan offers a fixed dollar benefit that is not impacted by the medical trend.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the Plan, calculated using a discount rate of
3.97% as well as what the Plan’s net OPEB liability would be if it were calculated using a
discount rate that is 1-percentage point lower (2.97%) or 1-percentage point higher (4.97%)
than the current rate:
1.0% decrease Current rate 1.0% increase
(2.97%) (3.97%) (4.97%)
Net OPEB Liability $ 377,799 $ 3 36,505 $ 301,923
For the fiscal year ended June 30, 2024, the Town recognized an OPEB expense of $30,857.
As of June 30, 2024, the Town reported deferred outflows of resources and deferred inflows
of resources related to the OPEB plan from the following sources:
Deferred
Outflows of Deferred Inflows
Resources of Resources
Difference between expected and actual experience $ 9 4,066 $ 5 1,644
Changes of assumptions 3 3,848 1 07,937
Total $ 127,914 $ 159,581
42

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
10. OTHER POST EMPLOYMENT BENEFITS (continued)
Sensitivity of the net OPEB liability to changes in the discount rate (continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to the OPEB plan will be recognized in the expense as follows:
Fiscal Years Ending June 30:
2025 $ (2,181)
2026 (2,181)
2027 (2,181)
2028 (2,181)
2029 (2,181)
Thereafter (20,762)
Total $ (31,667)
11. COMMITMENTS AND CONTINGENCIES
Grants
The Town receives grants from time-to-time. Expenditures from certain grants are subject to
audit by the grantor, and the Town is contingently liable to refund amounts received in
excess of allowable expenditures. In the opinion of the Town’s management, no material
refunds will be required as a result of disallowed expenditures.
Borrowing Limit
In connection with the debt acquired in aggregate of $12,439,279, the Town, by Charter
Amendment, agreed to limit the amount of money it can borrow to an amount not to exceed
twenty percent (20%) of its assessable tax base of $675,986,564. Currently, the borrowing
limit is $135,197,313.
Litigation
In the normal course of business, the Town is a defendant in several lawsuits which
management is vigorously defending. No contingency has been established because neither
the outcome of the cases nor the amount of an award, if any, can be determined. The Town’s
attorney and the insurance carrier are defending these matters.
43

TOWN OF CENTREVILLE, MARYLAND
Notes to the Financial Statements
For the Year Ended June 30, 2024
12. NEW ACCOUNTING PRONOUNCEMENTS
As of June 30, 2024, GASB has issued the following pronouncements: Statement No. 99,
Omnibus 2022; and Statement No. 100, Accounting Changes and Error Corrections. These
statements have been implemented and did not have a material effect on the Town’s financial
statements.
The GASB has also issued Statement; Statement No. 101, Compensated Absences; Statement
No. 102, Certain Risk Disclosures; and Statement No. 103, Financial Reporting Model
Improvements, which will require adoption in the future, if applicable. The Town will be
analyzing the effects of these pronouncements and plans to adopt them, as applicable, by
their effective dates.
44

REQUIRED SUPPLEMENTARY INFORMATION

TOWN OF CENTREVILLE, MARYLAND
Schedule of the Town’s Proportionate Share of the Net Pension Liability
For the Year Ended June 30, 2024
2024 2023 2022 2021 2020
Town's proportion (%) of collective net pension liability 0.012% 0.005% 0.005% 0.004% 0.004%
Town's proportionate share ($) of collective net pension liability $ 2,736,819 $ 1,640,344 $ 722,942 $ 971,794 $ 755,098
Town's covered-employee payroll ($) 2,213,955 2,444,913 1,475,740 1,575,873 1,374,365
Town's proportionate share of collective net pension liability as a percentage of its
covered-employee payroll
123.62% 67.09% 48.99% 61.67% 54.94%
Pension plan's fiduciary net position as a percentage of the total pension liability 73.81% 76.27% 81.84% 70.72% 71.18%
2019 2018 2017 2016 2015
Town's proportion (%) of collective net pension liability 0.003% 0.004% 0.004% 0.004% 0.003%
Town's proportionate share ($) of collective net pension liability $ 473,707 $ 610,884 $ 731,555 $ 849,555 $ 786,927
Town's covered-employee payroll ($) 1,374,365 1,678,660 1,555,613 1,617,811 1,402,901
Town's proportionate share of collective net pension liability as a percentage of its
covered-employee payroll
34.47% 36.39% 47.03% 52.51% 56.09%
Pension plan's fiduciary net position as a percentage of the total pension liability 71.18% 69.38% 65.79% 68.78% 71.87%
46

TOWN OF CENTREVILLE, MARYLAND
Schedule of the Town’s Pension Plan Contributions
For the Year Ended June 30, 2024
2024 2023 2022 2021 2020
Contractually required contribution $ 326,155 $ 289,830 $ 103,892 $ 106,185 $ 92,189
Contributions in relation to the contractually required
contribution 326,155 289,830 103,892 106,185 92,189
Contribution deficiency (excess) $ - $ - $ - $ - $ -
Town's covered-employee payroll $ 2,213,955 $ 2,444,913 $ 1,475,740 $ 1,429,454 $ 1,575,873
Contributions as a percentage of covered-employee payroll 14.7% 11.9% 7.0% 7.4% 5.9%
Contractually required contribution 2019 2018 2017 2016 2015
$ 75,178 $ 58,058 $ 76,809 $ 70,145 $ 80,884
Contributions in relation to the contractually required
contribution
75,178 58,058 76,809 70,145 80,884
Contribution deficiency (excess)
$ - $ - $ - $ - $ -
Town's covered-employee payroll
$ 1,374,365 $ 1,678,660 $ 1,555,613 $ 1,617,811 $ 1,402,901
Contributions as a percentage of covered-employee payroll
5.5% 3.5% 4.9% 4.3% 5.8%
47

TOWN OF CENTREVILLE, MARYLAND
Schedule of Changes in Net OPEB Liability and Related Ratios
For the Year Ended June 30, 2024
2024 2023 2022 2021 2020 2019 2018
Total OPEB liability
Service cost $ 20,869 $ 9,908 $ 14,955 $ 14,540 $ 11,890 $ 10,492 $ 10,197
Interest 12,169 13,768 8,970 7,317 8,283 10,137 9,974
Changes in benefit terms - 4,149 - - - - -
Differences between expected and actual experiences (5,225) (33,425) (3,372) 150,532 6,866 (41,010) -
Changes of assumptions (4,187) (45,122) (97,878) 19,618 26,735 16,487 (1,461)
Benefit payments (9,979) (9,576) (16,800) (19,800) (19,800) (12,600) (19,400)
Net Changes in Total OPEB Liability 13,647 (60,298) (94,125) 172,207 33,974 (16,494) (690)
Total OPEB liability - beginning 322,858 383,156 477,281 305,074 271,100 287,594 288,284
Total OPEB liability - ending (a) $ 336,505 $ 322,858 $ 383,156 $ 477,281 $ 305,074 $ 271,100 $ 287,594
Plan Fiduciary Net Position
Contributions - employer $ 9,979 $ 9,576 $ 16,800 $ 19,800 $ 19,800 $ 12,600 $ 19,400
Net investment income - - - - - - -
Benefit payments (9,979) (9,576) (16,800) (19,800) (19,800) (12,600) (19,400)
Administrative expense - - - - - - -
Net Changes in Plan Fiduciary Net Position - - - - - - -
Plan fiduciary net positions - beginning - - - - - - -
Plan fiduciary net positions - ending (b) $ - $ - $ - $ - $ - $ - $ -
County's Net OPEB Liability - Ending (a) - (b) $ 336,505 $ 322,858 $ 383,156 $ 477,281 $ 305,074 $ 271,100 $ 287,594
Plan fiduciary net position as a percentage of total pension liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Covered employee payroll $ 2,213,955 $ 2,444,913 $ 1,475,740 $ 1,429,454 $ 1,575,873 $ 1,374,365 $ 1,678,660
Net liability as a percentage of covered payroll 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Annual money-weighted rate of return, net of investment expense 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Notes to schedule:
This information is not available for FY17 and prior.
The discount rate was changed from 3.86% as of June 30, 2023 to 3.97% as of June 30, 2024.
The annual determined contribution has not been calculated, therefore is not available.
48

TOWN OF CENTREVILLE, MARYLAND
Schedule of Revenue and Expenditures Budget and Actual (Budgetary Basis) -
General Fund
For the Year Ended June 30, 2024
Original
Budget Final Budget Actual Variance
REVENUE
Revenues from local sources
General property taxes $ 3,504,199 $ 3,504,199 $ 3,437,065 $ (67,134)
Local income taxes 755,500 755,500 1,284,019 528,519
Public utility taxes 997,757 997,757 1,165,850 168,093
Total taxes 5,257,456 5,257,456 5,886,934 629,478
Licenses and permits 124,300 124,300 112,843 (11,457)
Intergovernmental 392,676 392,676 373,697 (18,979)
Charges for services 475,120 475,120 496,839 21,719
Miscellaneous
Interest income 150,100 150,100 412,070 261,970
Other income 284,477 284,477 301,962 17,485
Total miscellaneous 434,577 434,577 714,032 279,455
TOTAL REVENUE $ 6,684,129 $ 6,684,129 $ 7,584,345 $ 900,216
49

TOWN OF CENTREVILLE, MARYLAND
Schedule of Revenue and Expenditures Budget and Actual (Budgetary Basis) -
General Fund
For the Year Ended June 30, 2024
Original
Budget Final Budget Actual Variance
EXPENDITURES
Town administration
Council $ 49,999 $ 49,999 $ 44,873 $ 5,126
Administration 1,248,694 1,248,694 1,123,256 125,438
Planning and zoning 82,550 82,550 86,215 (3,665)
Total town administration 1,381,243 1,381,243 1,254,344 126,899
Public safety
Police 2,282,766 2,282,766 1,917,920 364,846
Volunteer fire and rescue services 75,000 75,000 75,000 -
Total public safety 2,357,766 2,357,766 1,992,920 364,846
Public works
Highways and streets 1,812,539 1,812,539 2,017,197 (204,658)
Landfill 386,469 386,469 378,504 7,965
Total public works 2,199,008 2,199,008 2,395,701 (196,693)
Parks and recreation 132,030 132,030 161,301 (29,271)
Public cemetery 94,442 94,442 116,648 (22,206)
Debt service
Principal - - - -
Other
Other items 311 311 397,323 (397,012)
Other financing uses
Transfers out 400,000 400,000 - 400,000
TOTAL EXPENDITURES 6,564,800 6,564,800 6,318,237 246,563
Excess (deficiency) of revenue over
expenditures $ 119,329 $ 119,329 $ 1,266,108 $ 1,146,779
50

SUPPLEMENTAL SCHEDULES

TOWN OF CENTREVILLE, MARYLAND
Supplemental Balance Sheet – General Fund
As of June 30, 2024
Revolving Perpetual Care Total General
General Fund Housing Fund Fund Funds
ASSETS
Cash and cash equivalents $ 7,013,754 $ 115,451 $ 242,577 $ 7,371,782
Accounts receivable - taxes 443,123 - - 443,123
Accounts receivable - other - net 58,103 - 8,083 66,186
Notes receivable - 99,664 - 99,664
Prepaid expenses 238,845 - - 238,845
Due from other funds 447,063 - 125,511 572,574
TOTAL ASSETS 8,200,888 215,115 376,171 8,792,174
LIABILITIES
Accounts payable 304,615 - - 304,615
Accrued payroll 206,890 - - 206,890
TOTAL LIABILITIES 511,505 - - 511,505
DEFERRED INFLOWS OF RESOURCES 134,043 - - 134,043
FUND BALANCES
Non-spendable 238,845 99,664 - 338,509
Restricted - - 376,171 376,171
Committed - 115,451 - 115,451
Unassigned 7,316,495 - - 7,316,495
TOTAL FUND BALANCES 7,555,340 215,115 376,171 8,146,626
TOTAL LIABILITIES, DEFFERED INFLOWS
OF RESOURCES AND FUND BALANCES $ 8,200,888 $ 215,115 $ 376,171 $ 8,792,174
52

TOWN OF CENTREVILLE, MARYLAND
Supplemental Schedule of Revenue, Expenditures
and Changes in Net Position – General Fund
For the Year Ended June 30, 2024
Revolving Perpetual Care Total General
General Fund Housing Fund Fund Funds
Revenue
Property taxes $ 4,602,915 $ - $ - $ 4,602,915
Local income taxes 1,284,019 - - 1,284,019
Intergovernmental revenue 373,697 - - 373,697
Licenses and permits 112,843 - - 112,843
Charges for services 492,539 - 4,300 496,839
Miscellaneous revenue 695,571 5,959 12,502 714,032
Total Revenue 7,561,584 5,959 16,802 7,584,345
EXPENDITURES
General government administration 1,433,712 - - 1,433,712
Public safety 1,973,453 - - 1,973,453
Public works 1,721,336 - - 1,721,336
Parks and recreation 132,451 - - 132,451
Cemetery 41,619 - - 41,619
Stormwater/watershed 11,811 - - 11,811
Centreville wharf 55,104 - - 55,104
Capital outlays 186,063 - - 186,063
Debt service
Principal 674,730 - - 674,730
Interest 87,958 - - 87,958
Total Expenditures 6,318,237 - - 6,318,237
Excess (Deficiency) of Revenues
Over Expenditures 1,243,347 5,959 16,802 1,266,108
Change in Fund Balance 1,243,347 5,959 16,802 1,266,108
Fund balance, beginning of year 6,311,993 209,156 359,369 6,880,518
Fund Balance, End of Year $ 7,555,340 $ 215,115 $ 376,171 $ 8,146,626
53

TOWN OF CENTREVILLE, MARYLAND
Supplemental Schedule of Revenue, Expenses
and Changes in Net Position – Proprietary Fund
For the Year Ended June 30, 2024
Enterprise
Fund
Revenue
Charges for Services
Sewer $ 1,540,269
Water 1,376,172
Sewer vacant lots 10,535
Sale of crops 123,000
Grant and other miscellaneous revenue 322,629
Total Charges for Services 3,372,605
Miscellaneous Revenue
Investment earnings 40
Total Revenue 3,372,645
Operating Expenses
Sewer 1,703,764
Water 1,568,246
Farm 77,750
Total Operating Expenses 3,349,760
Debt Service
Interest 235,112
Admin fees 52,612
Total Debt Service 287,724
Total Expenses 3,637,484
Change in Net Position $ (264,839)
54