Fiscal Year 2018 CAFR (PDF)

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QUEEN ANNE'S COUNTY, MARYLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal 1-5
Certificate of Achievement for Excellence in Financial Reporting 7
Organization Chart 8
Certain Elected and Other Officials 9
FINANCIAL SECTION
Independent Auditor's Report 11-13
Management's Discussion and Analysis (required supplementary information) 15-30
BASIC FINANCIAL STATEMENTS 31
Government-Wide Financial Statements
Statement of Net Position 32-33
Statement of Activities 34-35
Governmental Fund Financial Statements
Balance Sheet 36
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 37
Statement of Revenues, Expenditures and Changes in Fund Balances 38
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 39
Enterprise Fund Financial Statements
Statement of Net Position 40-41
Statement of Revenues, Expenses, and Changes in Net Position 42-43
Statement of Cash Flows 44-45
Fiduciary Fund Statements
Statement of Fiduciary Net Position 46
Statement of Changes in Fiduciary Net Position 47
Notes to Financial Statements 49-118
REQUIRED SUPPLEMENTARY INFORMATION 119
Maryland State Retirement and Pensions Systems
Schedule of the Proportionate Share of the Net Pension Liability 120
Schedule of Contributions 120
Actuarial Assumptions - Pension Plan 121
Other Post-Employment Benefits (OPEB) Trust
Schedule of Changes in the Net OPEB Liability 122
Schedule of Actual Employer Contribution as a Percentage of Covered-Employee Payroll 123
Actuarial Assumptions - OPEB Plan 123
Budgetary Comparisons for General Fund
General Fund
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 124-126

QUEEN ANNE'S COUNTY, MARYLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS (CONTINUED)
Page(s)
FINANCIAL SECTION (CONTINUED)
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
(OTHER SUPPLEMENTARY INFORMATION) 128
Non-Major Governmental Funds 129-131
Combining Balance Sheet 132-134
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 136-138
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budgetary Basis 140-147
Non-Major Enterprise Funds 149-150
Combining Statement of Net Position 151
Combining Statement of Revenues, Expenses, and Changes in Net Position 152
Combining Statement of Cash Flows 153
Fiduciary Funds 154-155
Other Post-Employment Benefit Trust Fund
Combining Statement of Fiduciary Net Position 156
Combining Statement of Changes in Fiduciary Net Position 157
Agency Funds
Statement of Assets and Liabilities 159
Statement of Changes in Assets and Liabilities 160-161
Community Partnerships for Children Special Revenue Fund 162
Combining Balance Sheets - By Grantor 163
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
By Community Partnership Agreements (CPA) and
Non-Community Partnership Agreements (Non-CPA) 164-166
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budgetary Basis 168-169
STATISTICAL SECTION (UNAUDITED) 171
Table
1 Net Position by Component - Government-Wide 172-173
2a Changes in Net Position - Government-Wide 174-177
2b General Tax Revenues - Governmental Activities 178
3 Fund Balances - Governmental Funds 179
4 Changes in Fund Balances - Governmental Funds 180-181
5 Assessed Value of Taxable and Exempt Property 183
6a Real Property Tax Rates - County Direct Rate 184
6b Real Property Tax Rates - County Special Taxing Districts 185
6c Real Property Tax Rates - Overlapping Governments - Towns 186-187
7 Ten Highest Commercial Property Taxpayers 188
8 Property Tax Levies and Collections 189
9 Ratios of Outstanding Debt by Type 190
10 Ratios of General Bonded Debt Outstanding 191
11 Computation of Net Direct and Overlapping Debt 193
12a Computation of Legal Debt Margin 194-195
12b Computation of Local Debt Limit 196-197
13 Principal Employers 198
14 Demographic Statistics 199
15 County Government Employees - Full-Time Equivalents 200
16 County Government Employees - Full-Time Only by Function 201
17 Operating Indicators by Function 202
18 Capital Asset Statistics by Function 203

Introductory Section

Queen O F F I C E O F B U D G E T , FINANCE AND
INFORMATION TECHNOLOGY
Anne’s
The Liberty Building
County 107 North Liberty Street
Centreville, Maryland 21617
County Commissioners: Telephone: (410) 758-4064
James J. Moran, At Large Fax: (410) 758-3036
J ack N. Wilson Jr., District 1
S tephen Wilson, District 2 County Administrator: Gregg A. Todd
Robert Charles Buckey, District 3 Director, Budget, Finance and IT: Jonathan R. Seeman
Mark A. Anderson, District 4 Chief Treasury Officer: Jeffrey A. Rank
Information Technology Manager: Megan DelGaudio
December 1, 2018
The Board of County Commissioners and
The Citizens of Queen Anne’s County, Maryland
FORMAL TRANSMITTAL OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR)
State law requires that all general-purpose governments publish a complete set of financial statements presented in conformity
with accounting principles generally accepted in the United States of America (GAAP) and audited in accordance with auditing
standards generally accepted in the United States of America by a firm of licensed certified public accountants. Pursuant to that
requirement, we hereby issue the comprehensive annual financial report of Queen Anne’s County, Maryland for the fiscal year
ended June 30, 2018.
This report consists of management’s representations concerning the finances of Queen Anne’s County. Consequently,
management assumes full responsibility for the completeness and reliability of all of the information presented in the report. To
provide a reasonable basis for making these representations, the management of Queen Anne’s County has established a
comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse
and to compile sufficient reliable information for the preparation of Queen Anne’s County’s financial statements in conformity
with Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not outweigh their
benefits, Queen Anne’s County’s comprehensive framework of internal controls has been designed to provide a reasonable,
rather than absolute, assurance that the financial statements will be free from material misstatement. As management, we assert
that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
Queen Anne’s County’s financial statements have been audited by TGM Group LLC, a firm of licensed certified public
accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of Queen Anne’s
County, for the fiscal year ended June 30, 2018, are free of material misstatement. The independent audit involves examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles
used and significant estimates made by management; and evaluating the overall financial statement presentation. The
independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that
Queen Anne’s County’s financial statements for the fiscal year ended June 30, 2018, are fairly presented in conformity with
GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.
The independent audit of the financial statements of Queen Anne’s County is part of a broader, federally mandated, “Single
Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements
require the auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s
internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements
involving the administration of federal awards. These reports are available in Queen Anne’s County’s separately issued Single
Audit report.
____________________________ ___________________________
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GAAP requires that management provide a narrative introduction, overview, and analysis, entitled Management’s
Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be
read in conjunction with it. Queen Anne’s County’s MD&A can be found immediately following the report of the
independent auditor.
PROFILE OF THE GOVERNMENT
Queen Anne’s County is situated on the Eastern Shore of Maryland. It is bordered to the north by Kent County, to
the east by the State of Delaware, to the south by Caroline and Talbot counties, and to the west by the Chesapeake
Bay. Access to the western shore of Maryland is provided by the Chesapeake Bay Bridge. The County is 373 square
miles in area and has approximately 48,904 citizens. The County seat is located in Centreville. The County
Commissioners of Queen Anne’s County are empowered to levy a property tax on both real and personal properties
located within its boundaries.
Queen Anne’s County was formed in 1706 and is governed by a five-member Board of County Commissioners.
County code provides that one Commissioner be elected purely at large; the remaining four Commissioners must
reside in specific districts, but are elected at large. The Commissioners operate under Maryland’s Code Home Rule
form of government. Both the executive and legislative functions of the County are vested with the Board of County
Commissioners.
Queen Anne’s County provides a full range of services including public safety (police, volunteer fire protection,
emergency services, detention center, and animal control), highways and streets, solid waste, planning and zoning,
economic development, culture and recreation, education, libraries, and general administrative services. In
conjunction with the State, the County also operates services related to general community health and social services.
In addition, the County operates a water and wastewater utility, an airport, a golf course, and public landings and
marinas.
BUDGETARY CONTROLS
The annual budget serves as the foundation for the County’s financial and budgetary controls to ensure compliance
with legal provisions embodied in the annual appropriation resolution approved by the County Commissioners. The
County budget is comprised of the budget message, current revenue and expense budgets and the capital budget and
capital program. Activities of the general fund, certain special revenue funds, and the enterprise funds are included in
the current budget.
The current operating budget includes appropriations for the full range of basic services. These services include
county administration, public safety, education, public works, community services, parks, debt and other agencies.
The capital budget includes funds to construct major governmental facilities such as the new County Courthouse,
roads, schools, and water and sewer infrastructure. Capital projects usually take more than a year to complete, unlike
the operating budget which covers only a year.
The budget process begins each fall when the County departments receive budget preparation instructions for the
capital budget which is then followed by instructions for the operating budget. The budget preparation is directed by
the Director of Budget, Finance, and Information Technology. After a thorough review of the departmental requests,
a County Administrator’s proposed budget is submitted to the County Commissioners in March. The County
Commissioners then conduct a series of public hearings and work sessions to review the proposed budget. After its
review, the County Commissioners finalize the budget and set tax rates, fees and charges needed to generate enough
revenue to balance the budget. The budget must be adopted by the County Commissioners on or before the last day of
the month of the fiscal year currently ending, although the Commissioners typically adopt the budget at the end of
May.
The Office of Budget, Finance, and Information Technology is responsible for budgetary control. The appropriated
budgets are prepared at the fund, function (e.g., public safety), and department (e.g., Detention Center) level.
Expenditures/expenses may not legally exceed appropriations, based on the level at which they were adopted. For the
General Fund, annual expenditure budgets are legally adopted at the departmental level. For all other Governmental
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Funds, for which annual budgets are adopted, expenditure budgets are legally adopted at the fund level. Budgets for
the General Capital Projects Fund and the Roads Capital Projects Fund reflect multi-year appropriations at the
individual project level.
Department Heads may make transfers of appropriations within a department of up to $10,000 with the approval of
the County Administrator. Transfers of appropriations or appropriation of new revenues in excess of $10,000 require
the approval of the County Commissioners. Budget to actual comparisons are provided in this report for individual
governmental funds for which an appropriated annual budget has been adopted. The budget comparisons for the
general fund are presented as part of the Required Supplementary Information portion of this report. For non-major
funds with appropriated annual budgets, budget to actual comparisons are presented in the Supplementary
Information subsection of this report.
ECONOMIC OUTLOOK AND CONDITION
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which Queen Anne’s County operates.
The unemployment rate for Queen Anne’s County is typically below the state and national averages, as shown in the
chart below. The June 2018 rate for the County was 3.9%, compared to the state’s rate of 4.5% and the U.S.’s rate of
4.0%. The 2018 average rate for the County was 3.7%.
LOCAL ECONOMY
The local employment base is somewhat limited and centers on several stable manufacturers, as well as the
agriculture, maritime, construction, retail, leisure, and hospitality industries. The three largest employers are
governmental units, including the County, the Board of Education, and Chesapeake College. There is a small, but
growing, base of specialty manufacturers. In addition, the County’s proximity to the Western Shore enables about
60% of the workforce to commute to locations outside the County, primarily to higher paying jobs in the Baltimore
and Washington areas.
Property taxes increased in fiscal year 2018 by 2.2% to $67.9 million due to an increase in assessable base. Property
tax revenue is projected to increase by 2.1% into fiscal year 2019 with revenue projected to be approximately $1.4
million above the 2018 fiscal year level. Local income tax is the County’s other main revenue source. Income tax
collections increased by 6.7% in fiscal year 2018, from $48.6 million in fiscal year 2017 to $51.8 million in fiscal
year 2018 as a result of increased employment and wage gains.
Recordation tax improved in fiscal year 2018 with an increase of 4.3% over fiscal year 2017, from $5.5 million in
fiscal year 2017 to $5.7 million in fiscal year 2018. In addition to an increase in recordation tax revenue, the transfer
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tax revenue also increased in fiscal year 2018 by 2.7%, from $1.9 million in fiscal year 2017 to $2.0 million in fiscal
year 2018. Both the recordation and transfer tax revenue increases are a direct result of the continued improvement in
the housing market.
LONG TERM FINANCIAL PLANNING
Rainy Day Fund – Ordinance No. 12-21 was adopted in January 2013 for the purpose of establishing and
maintaining a Rainy Day Fund for contingencies of an emergency nature; requiring annual reports on such fund
balance; providing for the appropriation of such funds to meet emergency needs; and requiring surplus revenues be
used to maintain the Rainy Day Fund at a set minimum amount. Beginning in fiscal year 2017, County Ordinance
No. 16-24 changed the minimum amount of the rainy day fund to 8% (previously 7%) of the following year’s
budgeted general fund operating revenues, as recommended by the Spending Affordability Committee. The County
funded the Rainy Day Fund with the required amount of $10,906,358 in fiscal year 2018.
Revenue Stabilization Fund (Previously “Special Fund”) – Resolution No. 14-05 was adopted in March 2014 for the
purpose of establishing and maintaining a Special Fund to set aside certain general funds of the County for certain
unanticipated projects, initiatives, and other one-time expenses. Resolution No. 16-99 was adopted in December 2016
for the purpose of renaming the “Special Fund” to the Revenue Stabilization Fund and revising the maximum amount
of such fund. The maximum amount of the Revenue Stabilization Fund shall not exceed 5% of budgeted general fund
operating revenues and the transfer to the General Fund shall only be made after the requirements of the Rainy Day
Fund have been met. The County funded the Revenue Stabilization Fund with $1,000,000 in fiscal year 2018. The
current balance of the Revenue Stabilization Fund is $5,000,000.
Spending Affordability Committee – Ordinance No. 15-11 was adopted in November 2015 for the purpose of
establishing a committee to provide recommendations and projections for the upcoming budget year. Specifically, the
Committee is charged to review in detail the status and projections of revenues and expenditures for the County for
the next budget year and subsequent five years; to review future County revenue levels and consider the impact of
economic factors such as changes in personal income and assessable base growth; and to review future expenditure
levels with consideration of County long-term obligations and any pressure for growth in costs.
The Committee’s recommendations help determine general expenditure guidelines based on projected revenue, and
the amount of new County debt authorization for the upcoming fiscal year. The Committee recommends policy
changes primarily regarding budgeting, debt, and fund balance. This Committee also assesses the County’s ability to
repay bond debt, determines debt capacity using several debt measures, and provides general guidance regarding
future capital budgets.
Capital Projects - The County Commissioners’ six-year capital program, starting with fiscal year 2019, prioritizes
capital expenditures over these years to meet the County’s needs. The six-year program totals $191.0 million and
includes: $42.5 million for various school related projects; $41.1 million for various Sanitary District projects
(includes the Southern Kent Island Sewer Service at $22.3 million); $19.0 million for the Detention Center (includes
the Detention Center renovation); $18.3 million for Roads Board capital projects; $12.6 million for the Bay Bridge
Airport; $9.7 million for the Department of Emergency Services; $9.6 million for Information Technology; $9.6
million for Administration and General Services (includes $1.5 million for the new courthouse); and $7.5 million for
Parks.
FINANCIAL POLICIES
Bond Ratings - The financial policies and management practices of Queen Anne’s County were recognized by three
major rating agencies. Fitch Rating Service issued an AAA bond rating, Moody’s issued a rating of Aa1, and
Standard & Poor’s also issued a AAA rating.
Debt Management Policy – In calendar year 2013, the County adopted Resolution 13-04, which revised the
County’s Local Debt Policy. In accordance with this policy, the Director of Budget, Finance, and Information
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Technology is responsible for following certain procedures to ensure that debt limits established by the Policy are not
exceeded. A key element of the Policy is that prior to the issuance of any new bonded indebtedness, the Director
must certify that existing and new General Obligation Debt will not exceed (1) 2.5% of the total taxable assessable
base and (2) $3,000 per capita. This policy also stipulates that although there is some flexibility as to the acceptable
percentage of debt service to general fund expenditures, and no absolute limit has been established by the rating
agencies or the Government Finance Officers Association, anything above 12% of total general fund expenditures
would be a cause to carefully monitor debt service. In addition to the debt management policy, the Spending
Affordability Committee recommended that the limit of debt service to general fund expenditures should be limited to
10% and the County Commissioners have adopted that as a limit.
For fiscal year 2018, Queen Anne’s County general obligation debt was 1.7% of the total taxable assessable base, and
the per capita debt measurement was $2,772. The debt service was 8.8% of the general fund expenditures for the year.
All thresholds are well below the policy limits.
Fund Balance Policy – Resolution 12-21 was adopted in calendar year 2012 for the purpose of establishing criteria
in which year end fund balances can be used. There are five purposes for which using fund balance is permitted: (1)
paygo for items/projects in the County Capital Improvement Plan, (2) as a supplement to the Rainy Day Fund if it is
underfunded, (3) to pay down existing debt, (4) reserved for future non-operating expenses related to fiscal
emergencies, and (5) as one time non-recurring expenditures of capital or non-capital items.
AWARDS AND ACKNOWLEDGMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to Queen Anne’s County, Maryland for its comprehensive annual
financial report (CAFR) for the fiscal year ended June 30, 2017. The Certificate of Achievement is a prestigious
national award that recognizes conformance with the highest standards for preparation of state and local government
financial reports. In order to be awarded a Certificate of Achievement, the County must publish an easily readable
and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. Queen Anne’s County, Maryland has received a
Certificate of Achievement for the last nineteen consecutive years (fiscal years 1999-2017). We believe our current
comprehensive annual financial report continues to conform to the Certificate of Achievement program requirements,
and we are submitting it to GFOA to determine its eligibility for another certificate.
The preparation of the comprehensive annual financial report was made possible by the dedicated service of the entire
staff of the finance office. Each member of the department has my sincere appreciation for the contributions made in
preparation of this report. Special recognition is given to members of the Audit Team: Nichole Hepfer, who is the
principal staff member responsible for preparing the report, Teresa Ward, Lauren James, and Justine Franzen. Their
dedication and professionalism in the preparation of Queen Anne’s County financial statements has resulted in
consistently accurate and transparent financial reporting.
Respectfully submitted,
Jonathan R. Seeman
Director of Budget, Finance and Information Technology
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QUEEN ANNE’S COUNTY, MARYLAND
GOVERNMENTAL ORGANIZATION
CERTAIN ELECTED AND OTHER OFFICIALS
AS OF JUNE 30, 2018
CERTAIN ELECTED OFFICIALS
County Commissioners James J. Moran, At Large
Jack N. Wilson, Jr., District 1
Stephen Wilson, District 2
Robert Charles Buckey, District 3
Mark A. Anderson, District 4
State’s Attorney Lance G. Richardson, Esq.
Sheriff Raymond G. Hofmann
CERTAIN DEPARTMENT HEADS AND OTHER OFFICIALS
County Administrator Gregg A. Todd
Director of Public Works Todd R. Mohn
Director of County Administration Gregg A. Todd
Director of Planning and Zoning E. Michael Wisnosky
Director of Community Services Catherine R. Willis
Director of Budget, Finance and Information Technology Jonathan R. Seeman
Chief Treasury Officer Jeffrey Rank
County Attorney Patrick E. Thompson, Esq.
Independent Auditor Bond Counsel Financial Advisor
TGM Group LLC McKennon, Shelton Public Advisory Consultants
Certified Public Accountants & Henn, LLP Baltimore, Maryland
Salisbury, Maryland Baltimore, Maryland
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INDEPENDENT AUDITORS’ REPORT
County Commissioners of
Queen Anne’s County
Centreville, Maryland
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of Queen Anne’s County, Maryland (the “County”) as of and
for the year ended June 30, 2018, and the related notes to the financial statements, which collectively
comprise the County’s basic financial statements as listed in the table of contents.
Management’s Responsibility 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; this
includes 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.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not
audit the component unit financial statements of the Board of Education of Queen Anne’s County and
the Queen Anne’s County Free Library. Those statements were audited by other auditors whose
report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the
Board of Education of Queen Anne’s County and the Queen Anne’s County Free Library, is based
solely upon the reports of the other auditors. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America and the standards applicable to financial
audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
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are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, based on our audit and the reports of the other auditors, the financial statements
referred to above present fairly, in all material respects, the respective financial position of the
governmental activities, the business-type activities, the aggregate discretely presented component
units, each major fund, and the aggregate remaining fund information of Queen Anne’s County,
Maryland, as of June 30, 2018, 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.
Emphasis of Matter
As discussed in Note 14 to the financial statements, during the year ended June 30, 2018, the County
adopted new guidance from Governmental Accounting Standards Board (GASB) Statement No. 75,
Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Our opinion
is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and required supplementary information, as listed in the table
of contents, be presented to supplement the basic financial statements. Such information, although not
a part of the basic financial 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 and other auditors 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County’s basic financial statements. The introductory section, other
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supplementary information, and statistical section, as listed in the table of contents, are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
The other supplementary information is the responsibility of management and was 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 other supplementary information is fairly stated in all material respects in relation to the
basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide
any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November
30, 2018, on our consideration of the County’s internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements
and other matters. The purpose of that report is to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the effectiveness of the County’s internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the County’s internal control over financial reporting and
compliance.
Salisbury, Maryland
November 30, 2018
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-14-

Management’s Discussion and Analysis
Introduction
This section of the Comprehensive Annual Financial Report of Queen Anne’s County, Maryland (the County)
presents a narrative overview and analysis of the financial activities of Queen Anne’s County Government for
the fiscal year ended June 30, 2018. We encourage readers to consider the discussion and analysis along with
the other information in this report, including the transmittal letter, basic financial statements, and the notes to
the financial statements.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to Queen Anne’s County Government’s
basic financial statements. The County’s basic financial statements are comprised of three components:
Government-Wide Financial Statements
Fund Financial Statements
Notes to the Financial Statements
This report also contains other required and non-required 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 Queen Anne’s County Government’s finances, in a manner comparable to a
private sector business.
The statement of net position presents information on all of Queen Anne’s County Government’s assets and
liabilities, with the difference between the two reported as net position. Over time, increases or decreases in
net position may serve as a useful indicator of whether the financial position and condition of Queen Anne’s
County Government is improving or declining.
The statement of activities presents information showing how the government’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, revenues and expenses are reported
in this statement for some items that will only 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 Queen Anne’s County Government
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 their costs through user fees and charges
(business-type activities).
The governmental activities of Queen Anne’s County Government include general government, public safety,
public works, health, social services, education, library, conservation of natural resources, and economic and
community development. The business-type activities of Queen Anne’s County Government include water
and sewer services, an airport, a golf course, and public landings and marinas.
The government-wide financial statements include not only Queen Anne’s County Government itself (known
as the primary government), but also legally separate component units. Queen Anne’s County Government
has the following discretely presented component units: Queen Anne’s County Board of Education and the
Queen Anne’s County Free Library. Financial information for these component units is reported separately
from the financial information presented for the primary government itself. The government-wide financial
statements can be found in the basic financial statements section of this report.
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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. Queen Anne’s County Government,
like other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of Queen Anne’s County Government can be divided into
three categories: governmental funds, proprietary funds, and fiduciary funds. Fund financial statements can
be found throughout this report, as listed in the table of contents.
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 available at the end of the fiscal year. Such information may be useful in evaluating a
government’s near term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better
understand the long-term impact of the government’s near term financing decisions. Both the balance sheet
and the statement of revenues, expenditures, and changes in fund balances for governmental funds provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities. These
two reconciliations begin with governmental fund financial data; describe all transactions that are added or
subtracted to yield governmental activities; and end with governmental activities financial data. These
reconciliations can be found within this report, as listed in the table of contents.
Queen Anne’s County maintains three types of governmental funds: the general fund, a variety of special
revenue funds, and five capital project funds. Information is presented separately in the governmental fund
balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances
for all governmental funds. Fund type is identified for each fund.
Queen Anne’s County adopts an annual appropriated budget for its general fund (includes the roads board);
school, fire, and parks impact fee capital projects funds; and the following special revenue funds: department
of aging, housing and community services, grants fund, economic development incentive, BRIDGE fund,
community partnerships for children, law library, inmate welfare, agricultural transfer, rural legacy, dredging
special assessments, and Kent Narrows. A budgetary comparison statement has been provided for each of
these funds, which can be found within this report, as listed in the table of contents.
Proprietary funds: Queen Anne’s County maintains enterprise funds to report the same functions presented as
business-type activities in the government-wide financial statements. Queen Anne’s County Government uses
enterprise funds to account for its water and sewer services, airport, golf course, and public landings and
marinas. The basic proprietary fund financial statements can be found within this report, as listed in the table
of contents.
Fiduciary funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statements because the
resources of those funds are not available to support Queen Anne’s County Government’s own programs. The
County acts as a fiduciary for two trust and five agency funds. The accounting used for fiduciary funds is
much like that used for proprietary funds except that the agency funds report only assets and liabilities and do
not report net assets or changes therein. The basic fiduciary fund financial statements can be found within this
report, as listed in the table of contents.
Notes to the financial statements: The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to the
financial statements can be found within this report, as listed in the table of contents.
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Government-wide Financial Analysis
Statement of Net Position
A summary of government-wide assets, liabilities, and net position is as follows:
Governmental Activities Business Type Activities Total
Summary of Net Position 2018 2017 * 2018 2017 * 2018 2017 *
Current and Other Assets $ 103,188,755 $ 9 0,809,875 $ 21,600,111 $ 21,279,057 $ 1 24,788,866 $ 112,088,932
Capital Assets 1 77,815,678 1 70,304,345 112,821,224 105,642,304 290,636,902 275,946,649
Total Assets 281,004,433 2 61,114,220 134,421,335 126,921,361 415,425,768 388,035,581
Total Deferred Outflows of Resources 7,703,714 8,813,258 673,112 755,904 8 ,376,826 9 ,569,162
Noncurrent liabilities 202,119,797 1 95,164,618 38,831,428 29,943,876 240,951,225 225,108,494
Other liabilities 1 1,429,918 8,779,579 2 ,095,483 5 ,106,714 13,525,401 1 3,886,293
Total Liabilities 213,549,715 2 03,944,197 40,926,911 35,050,590 254,476,626 238,994,787
Total Deferred Inflows of Resources 5,114,715 3,186,491 1,262,115 1,277,434 6 ,376,830 4 ,463,925
Net position:
Net investment in capital assets 114,794,226 1 20,249,244 84,386,291 86,163,078 199,180,517 206,412,322
Restricted amounts 1 3,275,244 13,094,534 1,060,134 1,700,836 14,335,378 14,795,370
Unrestricted amounts (deficit) (58,025,753) (70,546,988) 7 ,458,996 3 ,485,327 (50,566,757) ( 67,061,661)
Total Net Position $ 70,043,717 $ 6 2,796,790 $ 92,905,421 $ 91,349,241 $ 1 62,949,138 $ 154,146,031
* Restated for prior period adjustment (see Note 19).
The County’s total current and other assets increased by $12.7 million, or 11.3 percent, to $124.8 million. The
County’s total assets and deferred outflows of resources exceeded its total liabilities and deferred inflows of
resources at the close of fiscal year 2018 by $162.9 million.
Net position is divided into three categories: net investment in capital assets; restricted amounts; and
unrestricted amounts. By far the largest portion, $199.2 million, of the County’s total net position reflects its
investment in capital assets (e.g. land, buildings, machinery and equipment, vehicles, and infrastructure), less
any related and outstanding debt used to construct or acquire those assets. The County uses these capital assets
to provide services to citizens; consequently, they are not available for future spending. Although the
County’s investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay the debt must be provided from other sources since the capital assets themselves cannot be
used to liquidate these liabilities.
It is important to note that, although counties in the State of Maryland issue debt for the construction of
schools, the school buildings are owned by each county’s Board of Education. Ownership reverts to the
county government only if the local Board determines a building is no longer needed for educational purposes.
Therefore, while the County’s financial statements include outstanding debt related to Board of Education
capital assets, those statements do not include the capital assets funded by the debt. Debt outstanding for the
Board of Education amounted to $58.6 million at June 30, 2018. Absent the effect of this relationship, the
County would have reported a positive unrestricted amount of $8.1 million on its government-wide financial
statements, rather than the negative unrestricted net assets of $50.6 million reported herein. For a multi-year
view of this calculation, see the Footnote presented in Table 1 of the Statistical Section.
An additional $14.3 million of the County’s total net position represents resources that are subject to
restrictions on how they may be used. For governmental activities, this amount includes: $11.3 million related
to general government services; $996 thousand for economic/community development; $635 thousand for
conservation of natural resources; and $355 thousand for public safety. For business-type activities, this
amount includes $1.1 million restricted to meet Sanitary District debt covenants.
At the end of the current fiscal year, Queen Anne’s County Government reports positive balances in two out of
three categories of net position, both for the government as a whole, as well as for its separate governmental
activities. Business-type activities reports positive balances in all net position categories.
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Statement of Activities
The following table summarizes changes in net position for governmental and business-type activities during
the year:
Governmental Activities Business Type Activities Total
Summary of Changes in Net Position 2018 2017 * 2018 2017 * 2018 2017 *
Revenues:
Program revenues:
Charges for services $ 6 ,724,371 $ 6,448,779 $ 10,031,887 $ 9,017,348 $ 16,756,258 $ 15,466,127
Operating grants and contributions 5,738,111 4,892,311 255,687 369,280 5 ,993,798 5 ,261,591
Capital grants and contributions 3,025,897 2 24,990 4,198,378 2,222,796 7 ,224,275 2 ,447,786
General revenues:
Property taxes 6 7,736,404 66,487,004 - - 67,736,404 6 6,487,004
Local income tax 5 5,211,695 48,624,679 - - 55,211,695 4 8,624,679
Other local taxes
Admission and amusement taxes 158,881 1 56,872 - - 158,881 156,872
Recordation taxes 5,723,114 5,486,064 - - 5 ,723,114 5 ,486,064
Hotel taxes 617,293 5 99,868 - - 617,293 599,868
County transfer taxes 1,997,292 1,944,544 - - 1 ,997,292 1 ,944,544
Investment income 978,955 4 44,063 439,716 361,840 1 ,418,671 805,903
Gain on sale of capital assets 8 7,734 53,936 - - 87,734 5 3,936
Miscellaneous 630,895 2,065,465 865,879 809,211 1 ,496,774 2 ,874,676
Total Revenues 148,630,642 137,428,575 1 5,791,547 1 2,780,475 1 64,422,189 150,209,050
Expenses:
Governmental Activities:
General government 1 5,833,152 13,177,254 - - 15,833,152 1 3,177,254
Public safety 2 7,130,890 27,997,262 - - 27,130,890 2 7,997,262
Public works 1 7,665,141 20,753,117 - - 17,665,141 2 0,753,117
Health 1,996,939 2,006,219 - - 1 ,996,939 2 ,006,219
Social services 5,152,409 5,418,152 - - 5 ,152,409 5 ,418,152
Education 6 2,296,920 59,211,517 - - 62,296,920 5 9,211,517
Libraries 1,785,580 1,710,668 - - 1 ,785,580 1 ,710,668
Conservation of natural resources 2,567,600 6 16,237 - - 2 ,567,600 616,237
Economic and Community development 2,477,129 1,860,222 - - 2 ,477,129 1 ,860,222
Interest and fiscal charges 4,294,929 4,150,101 - - 4 ,294,929 4 ,150,101
Business-type Activities:
Water and sewer - - 12,297,109 11,818,087 12,297,109 1 1,818,087
Airport - - 1,077,168 1,053,899 1 ,077,168 1 ,053,899
Golf course - - 509,150 540,504 509,150 540,504
Public landings and marinas - - 534,966 572,360 534,966 572,360
Total Expenses 141,200,689 136,900,749 1 4,418,393 1 3,984,850 1 55,619,082 150,885,599
Increase (Decrease) in Net Position before Transfers 7,429,953 5 27,826 1,373,154 ( 1,204,375) 8,803,107 (676,549)
Transfers in (out) ( 183,026) (335,499) 183,026 335,499 - -
Increase (Decrease) in Net Position 7,246,927 1 92,327 1 ,556,180 (868,876) 8 ,803,107 (676,549)
Net Position, prior year 6 2,796,790 62,604,463 91,349,241 92,218,117 154,146,031 154,822,580
Net Position - current year $ 70,043,717 $ 62,796,790 $ 9 2,905,421 $ 9 1,349,241 $ 1 62,949,138 $ 154,146,031
* Restated for prior period adjustment (see Note 19).
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Governmental activities:
Revenues for governmental activities were $148.6 million for fiscal year 2018. The following chart depicts
revenues by source for governmental activities:
Revenues by Source -
Governmental Activities
For the Year Ended June 30, 2018
County transfer taxes Gain on Sale of Capital
1.34% Assets
Investment 0.06%
Hotel taxes Income Miscellaneous
0.42% 0.66% 0.42% Charges for services
4.52%
Recordation taxes
3.85%
Operating, capital &
Admission and restricted grants
amusement taxes 5.90%
0.11%
Local income tax
37.15%
Property taxes
45.57%
 Taxes comprise the largest source of County revenue, totaling $131.4 million (88.4 percent) of total
revenue for fiscal year 2018. Of that amount, property and local income tax together yielded $122.9
million (82.7 percent) of all revenue. Each County sets its own property and income tax rates, within
parameters established by the State. For fiscal year 2018, the County’s property tax rate remained
constant at $.8471 per $100 of assessed value of real property, based on full cash value of that
property. The County’s local income tax rate was set at 3.2 percent, effective January 1, 2012 and
thereafter. There is no local sales tax in the State of Maryland.
 Charges for services, totaling $6.7 million, reflect fees charged to County citizens. These primarily
support public works ($1.8 million or 26.5 percent), general government ($1.7 million or 24.8
percent), public safety ($1.5 million or 22.4 percent), and education ($1.3 million or 18.9 percent).
 Operating grants and contributions, totaling $5.7 million, reflect grants from Federal and State
agencies that support specific County programs. Programs that benefitted the most were: social
services ($2.0 million or 35.2 percent), public safety ($1.3 million or 22.6 percent), and public works
($823 thousand or 14.3 percent).
 Capital grants and contributions, totaling $3.0 million, reflect contributions from Federal and State
agencies, as well as developers. Conservation of natural resources benefits the most from capital
grants and contributions during the year ($1.4 million or 47.6 percent). General government also
benefited from capital grants and contributions during the year ($1.1 million or 35.7 percent).
-19-

Expenses for all governmental activities were $141.2 million for fiscal year 2018. The following chart depicts
expenses by function for governmental activities:
Expenses -
Governmental Activities
For the Year Ended June 30, 2018
Economic and
Interest and fiscal
Community
charges
Conservation of development
3.04%
natural resources 1.76%
1.82% General government
11.21%
Libraries
1.26% Public safety
19.21%
Education
Public works
44.12% Health 12.51%
Social services 1.42%
3.65%
As noted in the chart above and the table below, by far the County’s largest program and highest priority is
education, with expenses totaling $62.3 million (44.1 percent). The following table summarizes costs and
program-related revenues for the same programs in order of priority, yielding net service costs:
Expenses Program-Related Revenues Net Cost of Services
Net Cost of Governmental Activities 2018 2017 2018 2017 2018 2017
Education $ 62,296,920 $ 5 9,211,517 $ 1,272,301 $ 1,319,433 $ (61,024,619) $ (57,892,084)
Public Safety 2 7,130,890 27,997,262 2,966,001 2,393,911 (24,164,889) ( 25,603,351)
Public Works 1 7,665,141 20,753,117 2,883,893 2,613,823 (14,781,248) ( 18,139,294)
General Government 1 5,833,152 13,177,254 3,410,185 2,115,180 (12,422,967) ( 11,062,074)
Social Services 5,152,409 5,418,152 2,147,920 2,025,214 ( 3,004,489) (3,392,938)
Economic and Community Development 2,477,129 1,860,222 1,126,819 851,360 ( 1,350,310) (1,008,862)
Conservation of Natural Resources 2,567,600 6 16,237 1,681,260 247,159 (886,340) (369,078)
Other 8,077,448 7,866,988 - - ( 8,077,448) (7,866,988)
Total $ 141,200,689 $ 136,900,749 $ 15,488,379 $ 11,566,080 $ (125,712,310) $ (125,334,669)
Of the total cost of $141.2 million for governmental activities, $15.5 million (11.0 percent), of those costs were
covered by program-related revenues paid by individuals and external governmental entities. Of these outside
entities, individuals who benefited directly from County programs were charged user fees of $6.7 million,
while governments and other organizations that benefited indirectly from these programs contributed operating
grants of $5.7 million and capital grants of $3.0 million.
County taxpayers paid for most of the remaining $125.7 million in net program costs, through a variety of
County taxes, for a total of $131.4 million. Net program costs of services provided to the public, in order of
net cost, were: $61.0 million for education; $24.2 million for public safety; $14.8 million for public works;
$12.4 million for general government; $3.0 million for social services; $1.4 million for economic and
community development; $886 thousand for conservation of natural resources; and $8.1 million for other
services. See Changes in Net Position and General Fund Budgetary Highlights for further details.
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Changes in net position: Government-wide revenues, less expenses, plus/minus transfers in/out, yield changes
in net position. During fiscal year 2018, governmental activities increased the County’s net position overall by
$7.2 million, compared to an increase of $192 thousand in fiscal year 2017. The following discussion explains
changes in net position relative to the prior fiscal year.
Revenues for governmental activities increased by $11.2 million (8.2 percent). The following key revenues
changed, when compared to the prior fiscal year:
 Income taxes increased by $6.6 million (13.6 percent), from $48.6 million in fiscal year 2017 to $55.2
million in fiscal year 2018. Approximately half of the increase ($3.3 million) was the result of
increased receipts from the State for the County’s portion of the income tax collections. The
remaining increase resulted from an increase in the County’s portion of the income tax reserve held by
the State of Maryland.
 Capital grants and contributions increased by $2.8 million, from $225 thousand in fiscal year 2017 to
$3.0 million in fiscal year 2018. The key factor for this change is that conservation of natural
resources increased by $1.4 million due to grant funding received in fiscal year 2018 for the purchase
of land conservation easements and no such activity occurred in fiscal year 2017. General
governmental also increased by $1.1 million due to capital grant funding received in the current fiscal
year that was not received in the prior year. Of the $1.1 million, $975 thousand related to developer
contributed capital from the Four Seasons development.
 Property taxes increased by $1.2 million (1.9 percent), from $66.5 million in fiscal year 2017 to $67.7
million in fiscal year 2018 due to an increase in property assessments.
 Operating grants and contributions increased by $846 thousand (17.3 percent), from $4.9 million in
fiscal year 2017 to $5.7 million in fiscal year 2018. The majority of this increase was in
Economic/Community development, which increased by $579 thousand due to funding for the Chester
Wye house project. Public Safety also increased by $257 thousand.
 Miscellaneous revenue decreased by $1.4 million (69.5 percent), from $2.1 million in fiscal year 2017
to $631 thousand in fiscal year 2018. Of this decrease, $733 thousand related to the workmen’s
compensation adjustment resulting from the annual audit. The County charges workmen’s
compensation insurance based on insurance rates attributable to each class of worker and then
undergoes an annual audit to determine if those rates are accurate. Public works also received an
additional $366 thousand in fiscal year 2017 for the energy savings incentive program but did not
receive it in fiscal year 2018.
Expenses for governmental activities increased by $4.3 million (3.1 percent) and transfers out to business-type
activities decreased by $152 thousand. Key positive and negative expense changes, in order of relative
importance, are:
 Education expenses increased by $3.1 million (5.2 percent). The increase resulted from $2.5 million
more in expenses for the renovation of Grasonville Elementary School in the current fiscal year, due
to the timing of the project. The project was just beginning at the end of fiscal year 2017. In addition,
the operating allocation to the Board of Education increased by $1.3 million in fiscal year 2018. These
increases were partially offset by decreases in some of the other Board of Education projects.
 General Government increased by $2.7 million (20.2 percent), mainly as a result of increases in two
specific areas. First, expenses for other post-employment benefits (OPEB) increased by $2.1 million,
which is mainly due to increased expense associated with recording the OPEB liability for the County.
Secondly, miscellaneous expenses increased by $754 thousand due to several different factors.
Approximately half of the increase in miscellaneous expenses related to insurance and benefits.
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 Conservation of Natural Resources increased by $2.0 million (316.7 percent) due to increased
easement acquisitions in fiscal year 2018. A total of $1.8 million was spent on easements in fiscal year
2018, compared to no acquisitions in fiscal year 2017. Generally, the timing of easement purchases is
affected by the evaluation process of the identified land, as well as the availability of State funds.
 Economic and Community Development increased by $617 thousand (33.2 percent) as a result of the
expenses for the Chester Wye house, which did not occur until the current fiscal year.
 Public Works decreased by $3.1 million (14.9 percent). The majority of the reduction in public works
expenses resulted from a decrease in donated property. In fiscal year 2017, the County donated land
totaling 2.2 million to the Town of Centreville for roads, stormwater and utilities and $219 thousand
to the Maryland State Highway Administration for road improvements. There were no such donations
in fiscal year 2018. In addition, the OPEB expense associated with public works decreased by $540
thousand. Lastly, the pension expense associated with pubic works decreased by $514 thousand as a
result of the pension liability recorded at the County level, which decreased in fiscal year 2018.
 Public Safety decreased by $866 thousand (3.1 percent) resulting from a decrease of $1.8 million in
the pension funding. The OPEB expense also decreased by $972 thousand. Offsetting a portion of the
decreases were increases in other areas, such as a $630 thousand increase in emergency services from
additional staff costs as well as other operational costs and an increase of $867 thousand in
depreciation expense due to the addition of the emergency services communication system in fiscal
year 2017, which began depreciating in fiscal year 2018.
Business-type activities:
Revenues, transfers in, and expenses for business-type activities were $15.8 million, $183 thousand, and $14.4
million, respectively, for fiscal year 2018. The following two charts depict revenues by source and expenses by
service for business-type activities:
Revenues by Source -
Business-Type Activities
For the Year Ended June 30, 2018
Investment
income Miscellaneous
2.78% 5.48%
Operating &
capital grants & Charges for
contributions services
28.21% 63.53%
Expenses by Service -
Business-Type Activities
For the Year Ended June 30, 2018
Public landings
Golf course
and marinas
3.53%
3.71%
Airport
7.47%
Water and
sewer
85.29%
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Business-type activities increased the County’s net position altogether by $1.6 million in fiscal year 2018,
which is an increase of $2.4 million compared to the prior year’s decrease of $869 thousand. The fiscal year
2018 change in net position resulted primarily from:
 Operating revenues before transfers increased by $3.0 million (23.6 percent), from $12.8 million in
fiscal year 2017 to $15.8 million in fiscal year 2018, for all business-type activities. Sanitary capital
grants and contributions increased by $2.0 million due to increased funding for the Four Seasons
development. Charges for services increased by $1.0 million due to increased revenue in Sanitary. In
addition to increased revenue for the Sanitary District, the expenses also increased by $479 thousand
for Sanitary, mainly due to an increase in the cost of sales and services.
Financial Analysis of the Government’s Funds
As noted earlier, Queen Anne’s County Government uses fund accounting to ensure and demonstrate
compliance with finance related legal requirements. Detailed financial data based on the government’s fund
accounting can be found in the governmental fund statements in this report.
Governmental Funds: The focus of Queen Anne’s County Government’s governmental funds is to provide
information on near term inflows, outflows, and balances of spendable resources. Such information is useful
in assessing Queen Anne’s County Government’s near term financing requirements. In particular, unassigned
fund balance may serve as a useful measure of a government’s net resources available for spending at the end
of a fiscal year.
As of the end of the current fiscal year, Queen Anne’s County Government’s governmental funds reported
combined ending fund balances of $78.8 million, compared to $72.1 million for the prior year. Approximately
14.1 percent of this total ($11.1 million) constitutes unassigned fund balance, which is available for spending.
The total unassigned fund balance of $11.1 million is comprised of $11.1 million of positive unassigned fund
balance for the general fund, reduced by negative unassigned fund balances of $49 thousand in the non-major
governmental funds. Additional detail on the negative unassigned balances can be found in Note 15 of this
report.
The nonspendable fund balance of $8.6 million, at 10.9 percent of the total fund balance, is not available for
spending and includes amounts related to inventory and loans receivable. Restricted fund balance of $17.8
million (22.6 percent) includes amounts that can be spent only for specific purposes stipulated by external
sources or legal restrictions. Included in the restricted fund balance is $10.9 million for the rainy day fund.
Committed fund balance of $20.2 million (25.6 percent) represents those amounts that can be used only for the
specific purposes of the government’s highest level of decision-making authority. Included in the committed
fund balance is $5.0 million for the revenue stabilization fund.
The remaining 26.8 percent of fund balance ($21.1 million) constitutes assigned fund balances. These
amounts are intended to be used by the government for the specific purposes of each fund.
The General Fund is the chief operating fund of Queen Anne’s County Government. At the end of the current
fiscal year, the General Fund had a total fund balance of $29.7 million, which is an increase of $3.4 million
from the fiscal year 2017 balance of $26.2 million.
Of the total $29.7 million in fund balance, $11.1 million is unassigned, meaning that there are no constraints
on how the funds can be spent. Beginning in fiscal year 2017, County Ordinance No. 16-24 changed the
minimum amount of the rainy day fund to 8.0 percent (previously 7.0 percent) of budgeted general fund
operating revenues as recommended by the Spending Affordability Committee. As a result of that Ordinance,
$10.9 million of rainy day funds are included in the General Fund’s restricted fund balance of $11.0 million for
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fiscal year 2018. The remaining fund balance is comprised of $1.0 million in nonspendable, $5.0 million in
committed, and $1.5 million of assigned.
For further explanations of General Fund revenues and expenditures, see the General Fund Budgetary
Highlights section of this MD&A.
The General Capital Projects Fund accounts for all capital projects related to governmental funds, except those
accounted for in the Roads Capital Projects Fund, which is discussed below.
As of June 30, 2018, the General Capital Projects Fund has a total fund balance of $26.6 million, compared to
$24.8 million at the end of the prior fiscal year. The $26.6 million in total fund balance is comprised of $2.2
million of nonspendable fund balance, $4.8 million in restricted fund balance, mainly for unspent bond
proceeds, $2.6 million of fund balance committed for specific projects, and $17.0 million of assigned fund
balance.
The Roads Capital Projects Fund accounts for financial resources used for the construction of County Road
infrastructure, as well as other large multi-year projects that relate to capital assets.
As of June 30, 2018, the Roads Capital Projects Fund has a total fund balance of $2.7 million, compared to
$2.1 million at the end of the prior fiscal year. Of this total $2.7 million fund balance, $2.1 million has been
assigned to fund ongoing projects, while $615 thousand has been contributed by local developers and is
committed to fund specific infrastructure improvements.
Proprietary funds: Queen Anne’s County Government’s enterprise fund statements provide the same type of
information found in the government-wide financial statements, but in more detail. Also, due to/due from
other funds are combined in the government-wide statements and reported as Internal Balances between
governmental and business-type activities, which net to zero.
Total unrestricted net position of the Sanitary District Enterprise Funds at the end of fiscal year 2018
amounted to $9.4 million, which is $3.4 million more than the prior year. The increase in unrestricted net
position is partially offset by a decrease of $1.5 million in net investment in capital assets. In addition, the
restricted amount for capital projects decreased by $753 thousand to a zero balance, due to the Four Seasons
development moving forward.
Total net position of the Sanitary District amounted to $71.8 million at the end of fiscal year 2018, which
increased by $1.3 million when compared to the prior year.
The unrestricted net position of the Bay Bridge Airport Enterprise Fund at year end amounted to negative $1.6
million compared to a negative $1.5 million at the end of the prior fiscal year, reflecting a decrease of $49
thousand. The investment in capital assets for the Bay Bridge Airport also decreased by $329 thousand in the
current fiscal year.
Total net position of the Bay Bridge Airport amounted to $15.0 million at the end of fiscal year 2018, which is
a decrease of $378 thousand from the prior year amount of $15.4 million.
A discussion of Enterprise Fund capital assets and long-term debt can be found in those sections presented
later in this MD&A.
General Fund Budgetary Comparisons
The County adopts an operating budget for the General Fund as of July 1 each year and amends that budget
throughout the year in response to actual expenditures. The Schedule of Revenues, Expenditures, and Changes
in Fund Balance – Budget and Actual can be found as part of Required Supplemental Information, which is
located after the Notes. The Schedule reports original and final budgets, as well as the variance between actual
expenditures and final budgets.
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Original to Final Budget Comparisons. The final expenditure budget for the General Fund, including transfers
out, totaled $137.3 million. Amendments increased spending authority by $3.5 million during fiscal year
2018, when compared to the original budget of $133.8 million.
Major components of these expenditure budget increases are as follows:
 Budgeted Transfers Out to General Capital Projects increased by $2.7 million during the year. There
are several capital projects in which the County plans to move aggressively on, and will rely on fund
balance available in the General Capital Projects fund to cover a portion of the costs.
 Budgeted Public Safety increased by $456 thousand, due to an increase in grant funding for the
Sheriff’s Office and also the hiring of five additional deputies for the new Circuit Courthouse ($231
thousand) and Emergency Services ($225 thousand) as the result of increased grant funding.
Budget to Actual Comparisons. Actual revenues for the General Fund, including other financing sources and
before appropriated fund balance were more than final budgetary estimates by $275 thousand. Actual
expenditures, and other financing uses, were less than final budgetary appropriations by $4.3 million. The net
effect of these two disparities was a positive variance of actual to final budget of $4.6 million.
The most noteworthy differences between final budgeted amounts and actual amounts are summarized as
follows:
Revenues:
 Charges for Current Services revenue was $422 thousand more than the final budget (17.4 percent)
mainly due to increased revenue for Road’s inspection fees, mosquito control, and Emergency
Services.
 Income tax revenue was $397 thousand more than the final budget (0.8 percent). Income tax revenue
has generally outperformed the County’s estimates, which are largely based on estimates from the
Comptroller for State revenue growth.
 Investment Income revenue was $263 thousand more than the final budget (70.1 percent) due to
increased cash on hand during the year and also an increase in the interest rates at MLGIP.
 Transfers In were $1.1 million less than the final budget (100 percent), as a result of transfer in from
School Impact fees not being made in the fiscal year. Management determined that it was more
advantageous to leave the funds in the Impact Fee Fund in anticipation of future Board of Education
projects.
Expenditures:
 Final Budgeted Salaries and Benefits were $37.5 million for the year, while actual costs were $36.1
million. They were underspent at year-end by $1.4 million (3.8 percent). The Sheriff’s Office was
underspent by $581 thousand, roads department by $326 thousand, volunteer fire and rescue by $284
thousand (workmen’s compensation savings), and emergency services by $247 thousand. This was
due to the number of vacant positions during the fiscal year and the lapsed funds associated with the
recruitment of staff.
 Final Budgeted Other Operating Charges were $99.8 million for the year, while actual costs were
$96.9 million. These costs were lower than budget at year end by $2.9 million (2.9 percent).
Operating Charges include contracted services, supplies, other charges, debt service, and transfers out.
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o Contracted Services were underspent by $467 thousand, with the largest savings realized by
the detention center ($195 thousand), information technology ($79 thousand), legal ($77
thousand), and contingency ($62 thousand).
o Supplies were underspent by $600 thousand, largely due to savings by roads ($429 thousand)
and solid waste ($140 thousand).
o Other Charges were underspent by $1.3 million. Of this amount, non-departmental had
savings of $455 thousand resulting from a variety of sources. The health department realized
savings of $310 thousand, which represents the unspent portion of their allocation that was
returned to the County in fiscal year 2018. In addition, contingency also realized savings of
$187 thousand. The remaining savings for other charges were spread throughout the General
Fund.
o Debt Service was underspent by $17 thousand, which resulted from estimating the debt
service payments for the recent bonds before the final schedules were available.
o Transfers Out were underspent by $592 thousand, due to savings realized by the Department
of Aging ($341 thousand), Housing and Community Services ($89 thousand) and the Golf
Course Enterprise Fund ($128 thousand), which allowed these departments to forgo this
portion of their appropriation.
Capital Assets and Debt Administration
Capital assets: Queen Anne’s County Government’s investment in capital assets for its governmental and
business-type activities as of June 30, 2018 amounted to $290.6 million (net of accumulated depreciation).
This investment in capital assets includes land and land improvements, intangible rights, construction in
progress, buildings, improvements other than buildings, infrastructure, autos, machinery, and equipment.
Capital asset activities, net of depreciation, are summarized as follows:
Governmental Activities Business Type Activities Total
Capital Assets, Net of Depreciation 2018 2017 2018 2017 2018 2017
Land and Land Improvements $ 86,654,575 $ 8 6,654,575 $ 15,632,770 $ 15,632,770 $ 1 02,287,345 $ 102,287,345
Intangible Rights - Easements 821,819 8 21,819 6,140 6,140 827,959 827,959
Construction in Progress 2 0,382,545 10,896,408 18,612,368 11,987,450 38,994,913 22,883,858
Buildings 3 2,473,236 32,679,764 6,575,399 7,154,870 39,048,635 39,834,634
Improvements other than Buildings 7,574,887 7,711,059 9,440,097 9,894,719 17,014,984 17,605,778
Infrastructure 1 0,360,916 10,748,316 52,799,809 50,517,345 63,160,725 61,265,661
Auto, Machinery, and Equipment 1 9,547,700 20,792,404 9,754,641 10,449,010 29,302,341 31,241,414
Total $ 177,815,678 $ 170,304,345 $ 1 12,821,224 $ 1 05,642,304 $ 2 90,636,902 $ 275,946,649
Queen Anne’s County’s total investment in capital assets for the current fiscal year, net of depreciation,
increased by 5.3 percent, or $14.7 million. Of this amount, governmental investment in capital assets
increased by $7.5 million, while business-type investment in capital assets increased by $7.2 million.
Changes in the County’s capital assets, with depreciation shown separately, are summarized as follows. Note
that completed projects that were reclassified from construction in progress (CIP) to other asset accounts
during the year net to zero and are reported in the same column.
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Governmental Activities
Changes in Capital Assets 2017 Additions Transfers Retirements 2018
Land and Land Improvements $ 86,654,575 $ - $ - $ - $ 86,654,575
Intangible Rights - Easements 821,819 - - - 821,819
Construction in Progress 1 0,896,408 9,979,602 (170,406) (323,059) 20,382,545
Buildings 4 7,283,043 6 86,116 170,406 - 48,139,565
Improvements other than Buildings 1 0,556,328 2 76,589 - - 10,832,917
Infrastructure 1 9,236,142 - - - 19,236,142
Auto, Machinery, and Equipment 3 6,859,158 1,602,559 - ( 1,169,345) 37,292,372
Total Assets before depreciation 212,307,473 12,544,866 - ( 1,492,404) 223,359,935
Less Depreciation (42,003,128) (4,622,315) - 1,081,186 (45,544,257)
Total Assets after depreciation $ 170,304,345 $ 7,922,551 $ - $ (411,218) $ 1 77,815,678
Business-Type Activities
Changes in Capital Assets 2017 Additions Transfers Retirements 2018
Land and Land Improvements $ 15,632,770 $ - $ - $ - $ 15,632,770
Intangible Rights - Easements 6,140 - - - 6,140
Construction in Progress 1 1,987,450 7,001,266 - (376,348) 18,612,368
Buildings 1 6,101,695 64,134 - - 16,165,829
Improvements other than Buildings 1 5,037,220 73,713 - - 15,110,933
Infrastructure 8 2,047,628 4,198,378 - - 86,246,006
Auto, Machinery, and Equipment 2 4,878,599 5 32,061 - - 25,410,660
Total Assets before depreciation 165,691,502 11,869,552 - (376,348) 177,184,706
Less Depreciation (60,049,198) (4,314,284) - - (64,363,482)
Total Assets after depreciation $ 105,642,304 $ 7,555,268 $ - $ (376,348) $ 1 12,821,224
Noteworthy capital asset events during the current fiscal year for governmental activities included the
following:
 Construction in Progress (CIP) increased by a net amount of $9.5 million. The following factors
contributed to this increase:
Major additions to Construction in Progress include: (a) Construction and site work for the new
Courthouse ($9.4 million); (b) Emergency Services public network ($125 thousand); (c) Detention
Center roof replacement ($122 thousand); (d) Chesapeake Heritage Visitor Center renovations ($95
thousand); and (e) Design and site work for the Cross County Connect Trail ($92 thousand).
Costs reclassified from Construction in Progress include the Centreville Library renovations ($170
thousand).
Retirements from Construction in Progress of $323 thousand include write-offs of costs incurred in:
(a) Roads Route 8 improvement project ($312 thousand) and (b) Detention Center Gpod replacement
project ($11 thousand) due to the projects not moving forward or not resulting in an asset.
 Buildings increased by an amount of $857 thousand and included: (a) New General Services
warehouse ($411 thousand); (b) Renovations to the Centreville Library ($240 thousand); (c) Upgrades
to the Emergency Operations Center ($103 thousand); and (d) New roof at the Centreville Transfer
Station ($102 thousand).
 Improvements other than buildings increased by an amount of $277 thousand and major additions
included: (a) Paving of White Marsh Park parking lot ($98 thousand); (b) Tennis courts at Old Love
-27-

Point Park ($60 thousand); (c) Paving projects ($82 thousand); (d) Vinyl fence and gate at the Health
Department ($12 thousand); and (e) Wood fence at the Liberty Building ($10 thousand).
 Auto, Machinery and Equipment increased by a net amount of $433 thousand. The following factors
contributed to this net increase:
Additions totaled $1.6 million and included departmental vehicles and equipment replacement for the
following: (a) Emergency Services ($379 thousand); (b) Sheriff’s Office ($313 thousand); (c) Roads
($243 thousand); (d) Parks ($217 thousand); (e) Information Technology ($193 thousand); (f) General
Services ($79 thousand); (g) Detention Center ($55 thousand); and (h) QACTV ($47 thousand).
Retired assets of $1.2 million included the following, the majority of which were fully depreciated: (a)
Sheriff’s Office vehicles sold as part of replacement program ($481 thousand); (b) Aging vehicles
sold ($190 thousand); (c) Obsolete computer software, hardware and other office equipment sold or
discarded ($113 thousand); (d) Solid Waste equipment and vehicles sold or discarded ($112
thousand); (e) QACTV equipment and vehicles sold or discarded ($58 thousand); (f) Planning and
Zoning equipment and vehicles sold or discarded ($38 thousand); and (g) Parks vehicles sold ($30
thousand).
Noteworthy capital asset transactions during the current fiscal year for business-type activities included the
following:
 Construction in Progress increased by a net amount of $6.6 million. The following factors contributed
to this increase:
Major additions to Construction in Progress include planning, design and construction work for the
Southern Kent Island (SKI) sewer system ($7.0 million).
Retirements from Construction in Progress of $376 thousand include write-offs of costs incurred in
Southern Kent Island (SKI) sewer system project for the Sanitary District due to those specific
expenses not qualifying as an asset.
 Buildings increased by $64 thousand. The increase resulted from lighting upgrades at the Sanitary
District Wastewater Treatment Plant.
 Improvements other than buildings increased by $74 thousand. The increase resulted from paving at
the Shipping Creek Marina ($48 thousand) and the Goodhands Creek Marina ($26 thousand).
 Infrastructure increased by $4.2 million as a result of various water and sewer infrastructure
contributed by commercial developers to be maintained by the County. Of the $4.2 million, $3.5
million was related to the Four Seasons development.
 Auto, Machinery and Equipment increased by an amount of $532 thousand and major additions
included: (a) New sewer pumps, well pumps and other sanitation equipment ($508 thousand) and (b)
New pay machines at Public Landings ($24 thousand).
Additional information on the County’s capital assets can be found in Note 6 of this report.
Long-term debt: At the end of the current fiscal year, Queen Anne’s County Government had total bonded
debt, loans, capital leases, other post-employment benefit obligations, net pension liability, and compensated
absence obligations of $241.0 million for its governmental and business-type activities.
The full faith, credit and unlimited taxing power of the County are irrevocably pledged to the levy and
collection of taxes in order to provide for the payment of principal and interest due on the bonded debt.
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Of this $241.0 million in debt, $38.8 million is considered to be self-supporting, in that obligations of the
County’s enterprise funds will be funded through charges and assessments related to the operations of those
funds. In addition, the Sanitary District’s Debt Service Fund holds total assets of $1.1 million, which are
restricted to payment of the Sanitary District’s subsequent year’s debt. See Note 10 for restricted assets and
subsequent year debt service obligations.
Debt activities are summarized as follows:
Bonded Debt, Loans,
Other Post-Employment Benefit Obligation, Governmental Activities Business Type Activities Total
Net Pension Liability, and Compensated Absences 2018 2017 * 2018 2017 * 2018 2017 *
Bonds, Notes, and Premiums $ 133,984,765 $ 125,217,582 $ 28,461,016 $ 19,514,223 $ 1 62,445,781 $ 144,731,805
Other Post-Employment Benefit Obligation 4 1,211,334 39,947,286 7,688,150 7,506,949 48,899,484 47,454,235
Net Pension Liability 2 4,362,611 27,446,255 2,299,155 2,553,815 26,661,766 30,000,070
Compensated Absences 2,561,087 2,553,495 383,107 368,889 2,944,194 2 ,922,384
Total Long-term Debt $ 202,119,797 $ 195,164,618 $ 38,831,428 $ 29,943,876 $ 2 40,951,225 $ 225,108,494
* Restated for prior period adjustment (see Note 19).
During the 2018 fiscal year, the County’s total net debt increased by $15.8 million (7.0 percent). Of this
amount, governmental debt increased by $7.0 million (3.6 percent), while business-type debt increased by $8.9
million (29.7 percent). In fiscal year 2018, the County issued the public facilities bonds of 2018 totaling
$16.0 million. The Sanitary District continued borrowing funds through the Maryland Water Quality
Administration for the Southern Kent Island (SKI) project. The total amount borrowed for this project in fiscal
year 2018 was $10.1 million. In addition, the total Other Post-Employment Benefit Obligations increased by
$1.4 million and the net pension liability decreased by $3.3 million. Offsetting these increases were changes in
accruals, plus the County’s repayment of existing debt in accordance with established repayment schedules for
bonds, notes, and capital lease agreements.
Additional information on the County’s long-term debt can be found in Note 9 of this report.
The public local laws of Queen Anne’s County limit the amount of general obligation debt to no more than
$8.0 million, beyond any bonded indebtedness of the County. Currently, approximately $6.6 million of this
authority is available. All other debt has been authorized under specific legislation. Additional information on
the computation of the legal debt margin can be found in Table 12 of the Statistical Section of this report.
During fiscal year 2018, Queen Anne’s County Government received “AAA” bond ratings from both Fitch
Rating Service and Standard & Poor’s and an “Aa1” bond rating from Moody’s Investors Service.
Economic Factors and Next Year’s Budget and Rates
The following economic factors were considered in preparing Queen Anne’s County Government’s operating
and capital budgets for the 2019 fiscal year:
 Property assessments are projected to increase by 3.13 percent over the previous year, based on State
Assessment Office values used to compute the Constant Yield rate.
 Income tax revenue was projected at $51.5 million for the 2019 budget.
The following are a few of the highlights from the fiscal year 2019 budget:
o Other Post-Employment Benefits shall continue to be funded in accordance with the approved
ten year plan;
o The Board of Education will be funded at Maintenance of Effort in fiscal year 2019;
o The County employees will receive a two percent cost of living allowance as of July 1, 2018;
and
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o The County has instituted an On the Spot Awards Program, providing a cash bonus for
extraordinary performance such as completing a special project or implementing a new
process.
Requests for information
This financial report is designed to provide a general overview of Queen Anne’s County Government’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 information should be addressed to the Queen
Anne’s County Finance Office, 107 N. Liberty Street, Centreville, Maryland 21617. This report can also be
found on the County’s website, http://www.qac.org (see Government, Departments, Budget, Finance, and IT,
Accounting section, Link to 2018 Comprehensive Annual Financial Report (CAFR)).
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Basic Financial Statements
-31-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
JUNE 30, 2018
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
Equity in Pooled Cash and Investments $ 61,728,781 $ 13,128,136 $ 74,856,917
Cash and Cash Equivalents - - -
Taxes Receivable (Net) 551,867 - 551,867
Accounts and Loans Receivable (Net) 7,546,801 616,055 8,162,856
Special Assessments (Net) 1,008,342 - 1,008,342
Internal Balances 1,953,396 (1,953,396) -
Due from Primary Government - - -
Due from Other Governments 18,382,883 70,553 18,453,436
Bond Interest Reimbursement Receivable - Build America Bond 82,405 3,373 85,778
Inventories 967,201 712,974 1,680,175
Prepaid Items 34,409 - 34,409
Endowment Fund - - -
Restricted Assets:
Equity in Pooled Cash and Investments 10,932,670 8,048,255 18,980,925
Accounts Receivable (Net) - 5,603 5,603
Special Assessments Receivable (Net) - 968,558 968,558
Capital Assets:
Nondepreciable Assets 107,858,939 34,251,278 142,110,217
Depreciable Assets, Net 69,956,739 78,569,946 148,526,685
Total Assets 281,004,433 134,421,335 415,425,768
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows related to Other Post-Employment Benefit Obligation 222,281 31,863 254,144
Deferred Outflows related to Pensions 6,393,763 615,166 7,008,929
Deferred Charge on Refunding 1,087,670 26,083 1,113,753
Total Deferred Outflows of Resources 7,703,714 673,112 8,376,826
LIABILITIES
Accounts Payable and Other Current Liabilities 8,249,184 1,684,467 9,933,651
Accrued Interest Payable 1,528,283 119,909 1,648,192
Due to Component Units 564,851 - 564,851
Due to Other Governmental Agencies 343,584 - 343,584
Unearned Revenue 744,016 197,835 941,851
Escrow Deposits - 93,272 93,272
Noncurrent Liabilities:
Due within One Year 10,508,556 1,415,630 11,924,186
Due in More than One Year 191,611,241 37,415,798 229,027,039
Total Liabilities 213,549,715 40,926,911 254,476,626
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows related to Pensions 3,127,324 293,557 3,420,881
Deferred Inflows related to Other Post-Employment Benefit Obligations - - -
Deferred Assessments 1,008,342 968,558 1,976,900
Deferred Fees 979,049 - 979,049
Total Deferred Inflows of Resources 5,114,715 1,262,115 6,376,830
NET POSITION
Net Investment in Capital Assets 114,794,226 84,386,291 199,180,517
Amounts Restricted for:
General Government 11,285,435 - 11,285,435
Economic/Community Development 996,114 - 996,114
Public Safety 355,101 - 355,101
Conservation of Natural Resources 635,032 - 635,032
Social Services 3,562 - 3,562
Debt Service - 1,060,134 1,060,134
Capital Projects - - -
Other Purposes - - -
Unrestricted Amounts (Deficit) ( 58,025,753) 7,458,996 (50,566,757)
Total Net Position $ 70,043,717 $ 92,905,421 $ 162,949,138
The accompanying notes to the basic financial statements are an integral part of this statement.
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QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
JUNE 30, 2018
(CONTINUED)
COMPONENT UNITS
BOARD OF FREE
EDUCATION LIBRARY
$ - $ -
13,775,576 602,372
- -
319,164 15,000
- -
- -
564,851 -
1,606,146 -
- -
40,287 -
- 27,279
- 156,251
- -
- -
- -
10,693,812 29,850
154,181,184 1,341,413
181,181,020 2,172,165
- 2,230
1,211,479 -
- -
1,211,479 2,230
11,385,502 89,808
- -
- -
32,951 -
936,006 -
- -
359,924 -
178,772,458 463,470
191,486,841 553,278
586,217 -
23,170,628 1,729
- -
- -
23,756,845 1,729
162,791,940 1,371,263
- -
- -
- -
- -
- -
- -
359,884 -
65,921 23,002
( 196,068,932) 225,123
$ ( 32,851,187) $ 1,619,388
The accompanying notes to the basic financial statements are an integral part of this statement.
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QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2018
PRIMARY GOVERNMENT
OPERATING CAPITAL
CHARGES FOR GRANTS AND GRANTS AND TOTAL
EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS REVENUE
PRIMARY GOVERNMENT
Governmental Activities
General Government $ 15,833,152 $ 1,669,311 $ 660,790 $ 1 ,080,084 $ 3,410,185
Public Safety 27,130,890 1,505,267 1,294,733 166,001 2,966,001
Public Works 17,665,141 1,779,206 822,659 282,028 2,883,893
Health 1,996,939 - - - -
Social Services 5,152,409 71,131 2,018,289 58,500 2,147,920
Education 62,296,920 1,272,301 - - 1,272,301
Library 1,785,580 - - - -
Conservation of Natural Resources 2,567,600 110,655 131,321 1 ,439,284 1,681,260
Economic/Community Development 2,477,129 316,500 810,319 - 1,126,819
Interest and Fiscal Charges 4,294,929 - - - -
Total Governmental Activities 141,200,689 6,724,371 5,738,111 3 ,025,897 15,488,379
Business-type Activities
Water and Sewer 12,297,109 9,214,383 90,000 4 ,198,378 13,502,761
Airport 1,077,168 25,857 60,858 - 86,715
Golf Course 5 09,150 340,123 - - 340,123
Public Landings and Marinas 5 34,966 451,524 104,829 - 556,353
Total Business-type Activities 14,418,393 10,031,887 255,687 4 ,198,378 14,485,952
Total Primary Government $ 155,619,082 $ 16,756,258 $ 5,993,798 $ 7 ,224,275 $ 29,974,331
COMPONENT UNITS
Board of Education $ 120,835,746 $ 1,486,182 $ 1 9,479,172 $ - $ 20,965,354
Free Library 2,344,860 5,277 311,217 - 316,494
Total Component Units $ 123,180,606 $ 1,491,459 $ 1 9,790,389 $ - $ 21,281,848
General Revenues
Local Property Tax
Local Income Tax
Other Local Taxes
Admission and Amusement Taxes
Recordation Taxes
Hotel Taxes
County Transfer Taxes
Grants and Contributions Not Restricted to Specific Programs
Investment Income
Gain on Sale of Capital Assets
Miscellaneous
Transfers In (Out)
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning of Year
Adjustment to Beginning Net Position
Net Position - Beginning of Year
Net Position - End of Year
The accompanying notes to the basic financial statements are an integral part of this statement.
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QUEEN ANNE'S COUNTY, MARYLAND QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2018 FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION
PRIMARY GOVERNMENT COMPONENT UNITS
GOVERNMENTAL BUSINESS-TYPE BOARD OF FREE
ACTIVITIES ACTIVITIES TOTAL EDUCATION LIBRARY
$ ( 12,422,967) $ - $ ( 12,422,967) $ - $ -
( 24,164,889) - ( 24,164,889) - -
( 14,781,248) - ( 14,781,248) - -
( 1,996,939) - ( 1,996,939) - -
( 3,004,489) - ( 3,004,489) - -
( 61,024,619) - ( 61,024,619) - -
( 1,785,580) - ( 1,785,580) - -
(886,340) - (886,340) - -
( 1,350,310) - ( 1,350,310) - -
( 4,294,929) - ( 4,294,929) - -
( 125,712,310) - ( 125,712,310) - -
- 1,205,652 1,205,652 - -
- (990,453) (990,453) - -
- (169,027) (169,027) - -
- 2 1,387 21,387 - -
- 6 7,559 67,559 - -
$ (125,712,310) $ 6 7,559 $ (125,644,751) $ - $ -
$ - $ - $ - $ (99,870,392) $ -
- - - - ( 2,028,366)
- - - (99,870,392) ( 2,028,366)
67,736,404 - 67,736,404 - -
55,211,695 - 55,211,695 - -
158,881 - 158,881 - -
5,723,114 - 5,723,114 - -
617,293 - 617,293 - -
1,997,292 - 1,997,292 - -
- - - 89,540,701 1,920,235
978,955 4 39,716 1,418,671 4 3,420 7,820
87,734 - 87,734 - -
630,895 8 65,879 1,496,774 1 72,950 31,799
(183,026) 1 83,026 - - -
132,959,237 1,488,621 134,447,858 89,757,071 1,959,854
7,246,927 1,556,180 8,803,107 (10,113,321) ( 68,512)
66,154,436 91,980,214 158,134,650 105,876,751 870,992
( 3,357,646) (630,973) ( 3,988,619) (128,614,617) 816,908
62,796,790 91,349,241 154,146,031 (22,737,866) 1,687,900
$ 70,043,717 $ 92,905,421 $ 162,949,138 $ (32,851,187) $ 1,619,388
The accompanying notes to the basic financial statements are an integral part of this statement.
-35-

QUEEN ANNE'S COUNTY, MARYLAND
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2018
MAJOR FUNDS NON-MAJOR TOTAL
GENERAL GENERAL ROADS GOVERNMENTAL GOVERNMENTAL
FUND CAPITAL CAPITAL FUNDS FUNDS
ASSETS
Cash and Cash Equivalents $ 27,946,000 $ 16,296,392 $ 2,806,250 $ 14,680,139 $ 6 1,728,781
Prepaid Items 34,409 - - - 3 4,409
Receivables
Taxes Receivable (Net) 551,867 - - - 5 51,867
Accounts and Loans Receivable 183,856 961,074 2,466 6,399,405 7 ,546,801
Special Assessments (Net) - - 115,922 892,420 1 ,008,342
Due from Other Governments 13,306,798 28,000 7,274 931,119 1 4,273,191
Due from Other Funds 784,055 1,251,318 - - 2 ,035,373
Inventory 967,201 - - - 9 67,201
Restricted
Restricted Equity in Pooled Cash - 10,932,670 - - 1 0,932,670
Total Assets $ 43,774,186 $ 29,469,454 $ 2,931,912 $ 22,903,083 $ 9 9,078,635
LIABILITIES
Accrued Liabilities $ 5,124,544 $ 2,285,725 $ 82,077 $ 591,857 $ 8 ,084,203
Due to Other Funds - - - 81,977 8 1,977
Due to Component Units - 564,851 - - 5 64,851
Due to Other Governmental Agencies - - - 343,584 3 43,584
Unearned Revenue 548,023 48,655 - 147,338 7 44,016
Total Liabilities 5,672,567 2,899,231 82,077 1,164,756 9 ,818,631
DEFERRED INFLOWS OF RESOURCES
Unavailable Income Taxes 7,857,585 - - - 7 ,857,585
Unavailable Property Taxes 161,984 - - - 1 61,984
Unavailable Inter-County Bonds Receivable 426,585 - - - 4 26,585
Unavailable Benefit Assessments - - 115,922 892,420 1 ,008,342
Unavailable Fees - - - 979,049 9 79,049
Total Deferred Inflows 8,446,154 - 115,922 1,871,469 1 0,433,545
FUND BALANCES
Nonspendable 1,001,610 2,182,392 - 5,401,161 8 ,585,163
Restricted 10,999,800 4,825,532 - 1,989,809 1 7,815,141
Committed 5,027,897 2,571,804 615,450 12,014,961 2 0,230,112
Assigned 1,483,827 16,990,495 2,118,463 509,685 2 1,102,470
Unassigned 11,142,331 - - (48,758) 1 1,093,573
Total Fund Balances 29,655,465 26,570,223 2,733,913 19,866,858 7 8,826,459
Total Liabilities, Deferred Inflows and
Fund Balances $ 43,774,186 $ 29,469,454 $ 2,931,912 $ 22,903,083 $ 9 9,078,635
The accompanying notes to the basic financial statements are an integral part of this statement.
-36-

QUEEN ANNE'S COUNTY, MARYLAND
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2018
Total Fund Balance - Governmental Funds $ 78,826,459
Amounts reported for Governmental activities in the Statement of Net Position
are different because:
Receivables not included in the governmental funds because they relate to debt.
A portion of the County's 2014 Bond offering related to debt issued on behalf of
Chesapeake College. Although Queen Anne's County will submit the payments
to the lender for the bonds, there are five Counties total that will share the expense
of the debt service for the Chesapeake College project. A receivable is booked in
Government-Wide in order to offset the debt recorded on the books related to the
portion of the Chesapeake College project that the other Counties are responsible for.
ADD Accounts Receivable - Related to Chesapeake College Debt 4,109,692
A portion of the County’s 2009 Bond offering was issued using
Build America Bonds. As an incentive to use these bonds, the Federal
government offered an interest reimbursement grant, which offsets the
County's debt service for interest expense. At year end, a receivable is booked
for the interest reimbursement due, but not yet received, which relates to the
interest expense not paid yet.
ADD Bond Interest Reimbursement Receivable - Build America Bond 82,405
Capital assets used in governmental fund activities are not current financial resources
and therefore are not reported in the funds.
ADD Nondepreciable capital assets
Land and Land Improvements $ 43,585,531
Infrastructure 43,890,863
Construction in Progress 20,382,545 107,858,939
ADD Depreciable capital assets
Buildings 48,139,565
Improvements other than Buildings 10,832,917
Machinery and Equipment 24,374,250
Vehicles 12,918,122
Infrastructure 19,236,142
Less Accumulated depreciation (45,544,257) 69,956,739
Revenues that are deferred in the governmental funds because they do not
provide current financial resources are recognized as revenues in the
Statement of Activities.
ADD Property Taxes deferred in governmental funds 161,984
ADD Income Taxes deferred in governmental funds 7,857,585
ADD Loans receivable deferred in governmental funds 426,585 8,446,154
Long-term liabilities related to governmental fund activities are not due and
payable in the current period and therefore are not reported in the funds.
SUBTRACT Accrued Interest Payable (1,528,283)
SUBTRACT Liability for Retirement Incentive (164,981)
SUBTRACT Long-Term Liabilities Due within One Year
Accrued Compensated Absences (1,601,944)
Bonds and Notes Payable (8,906,612) (10,508,556)
SUBTRACT Long-Term Liabilities Due in More than One Year
Other Post-Employment Benefit Obligation (41,211,334)
Net Pension Liability (24,362,611)
Accrued Compensated Absences (959,143)
Bonds and Notes Payable (125,078,153) (191,611,241)
ADD / SUBTRACT Deferred Inflows and Outflows
Deferred Inflows - Maryland State Pension (3,127,324)
Deferred Outflows- Other Post-Employment Benefit Obligations 222,281
Deferred Outflows - Maryland State Pension 6,393,763
Deferred Charge On Refunding 1,087,670 4,576,390
Total Net Position - Governmental Activities $ 70,043,717
The accompanying notes to the basic financial statements are an integral part of this statement.
-37-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
MAJOR FUNDS NON-MAJOR TOTAL
GENERAL GENERAL ROADS GOVERNMENTAL GOVERNMENTAL
FUND CAPITAL CAPITAL FUNDS FUNDS
REVENUES
Taxes
Local Property Tax $ 6 7,907,999 $ - $ - $ 36,731 $ 67,944,730
Local Income Tax 5 1,834,189 - - - 51,834,189
Admission and Amusement Taxes 158,881 - - - 158,881
Recordation Taxes 5,550,291 - - 172,823 5,723,114
Hotel Taxes 617,293 - - - 617,293
County Transfer Taxes 1,997,292 - - - 1,997,292
State Shared Taxes 768,800 - - 67,877 836,677
Franchise Fee 488,334 - - - 488,334
Licenses and Permits 625,285 53,825 - - 679,110
Intergovernmental 2,128,380 1,921,834 5 0,255 3 ,438,583 7,539,052
Bond Interest Reimbursement - Build America Bond 334,858 - - - 334,858
Charges for Current Services 2,845,264 27,071 6 0,908 2 ,365,458 5,298,701
Fines and Forfeitures 95,394 - - 162,832 258,226
Investment Income 639,388 172,419 2 8,882 138,266 978,955
Donations 1,801 - - 55,834 57,635
Miscellaneous 370,402 165,471 - 95,022 630,895
Total Revenues 1 36,363,851 2,340,620 140,045 6 ,533,426 145,377,942
EXPENDITURES
Current
General Government 8,838,705 1,138,284 - 30,057 10,007,046
Public Safety 2 3,911,335 684,680 - 453,416 25,049,431
Public Works 9,273,925 166,491 1,901,696 74,804 11,416,916
Health 1,971,460 - - - 1,971,460
Social Services 350,383 - - 3 ,778,751 4,129,134
Education 5 7,377,211 4,974,835 - - 62,352,046
Library 1,765,190 - - - 1,765,190
Conservation of Natural Resources 575,039 211,413 - 1 ,791,283 2,577,735
Economic/Community Development 809,247 719,767 - 904,157 2,433,171
Parks 3,642,267 175,921 - - 3,818,188
Recreation 633,019 - - - 633,019
Intergovernmental 484,263 - - - 484,263
Miscellaneous 4,864,305 - - - 4,864,305
Capital Outlay - 1 2,040,649 243,005 27,897 12,311,551
Debt Service
Principal 7,105,112 - - 44,425 7,149,537
Debt Issuance Costs - 229,894 - - 229,894
Interest and Fiscal Charges 4,280,553 - - - 4,280,553
Total Expenditures 1 25,882,014 2 0,341,934 2,144,701 7 ,104,790 155,473,439
Excess of Revenues Over (Under) Expenditures 1 0,481,837 (18,001,314) (2,004,656) (571,364) (10,095,497)
OTHER FINANCING SOURCES (USES)
Issuance of Debt - 1 3,679,451 2,320,549 - 16,000,000
Bond Premiums - 908,973 - - 908,973
Proceeds of Capital Asset Disposals 41,547 12,550 - - 54,097
Insurance Proceeds 35,175 - - 4,765 39,940
Transfers In - 5,253,577 360,000 2 ,606,624 8,220,201
Transfers Out (7,113,354) (67,461) - (1,222,412) (8,403,227)
Other Financing Sources (Uses) (7,036,632) 1 9,787,090 2,680,549 1 ,388,977 16,819,984
Net Increase in Fund Balances 3,445,205 1,785,776 675,893 817,613 6,724,487
Fund Balances, July 1 2 6,210,260 2 4,784,447 2,058,020 1 9,049,245 72,101,972
Fund Balances, June 30 $ 2 9,655,465 $ 2 6,570,223 $ 2,733,913 $ 19,866,858 $ 78,826,459
The accompanying notes to the basic financial statements are an integral part of this statement.
-38-

QUEEN ANNE'S COUNTY, MARYLAND
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2018
Change in Fund Balances - Total governmental funds, per Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds $ 6 ,724,487
Amounts reported for governmental activities in the Statement of Activities are different because:
Capital outlay expenditures are reported in Governmental Funds during the year. However, in the Statement
of Activities, costs for capital asset purchases are allocated over the estimated useful lives of those assets and reported as depreciation
expense over a number of years. Therefore, the change in assets differs from the change in fund balance by the amount of capital asset
purchases that will be capitalized and depreciated over a number of years, less the offsetting depreciation expense for the current year.
Proceeds received on disposal of capital assets are reported in Governmental Funds as current financial
resources. In the Statement of Activities, only the gain or (loss) realized on disposal of capital assets is reported. Thus, the change in net assets
differs from the change in fund balance by the cost of capital assets sold, net of accumulated depreciation (i.e., book value). In addition,
developer contributions of capital assets (primarily infrastructure) are not reported in Governmental Funds because they do not represent current
financial resources available to cover this year's expenditures. Thus, the change in net assets differs from the change in fund balance by the capital assets received.
Donated Capital Assets are not reported in Governmental Funds because they are not current financial resources.
However, in the Statement of Activities, they are recognized as capital contributions and as capital assets.
The following is a summary of the net increase in capital assets, which is detailed in Note 6 - Capital Assets - Primary Government.
ADD capital assets acquired as capital outlay $ 260,941
ADD capital assets resulting from general capital projects 12,040,920
ADD capital assets resulting from roads capital projects 243,005
SUBTRACT capital asset donations and transfers ( 19,086)
SUBTRACT book value of disposed capital assets, net of accumulated depreciation ( 392,132)
SUBTRACT current year depreciation expense ( 4,622,315)
Net Increase in Capital Assets 7,511,333
Receivables not included in the governmental funds because they relate to debt.
A portion of the County's 2014 Bond offering related to debt issued on behalf of Chesapeake College. Although Queen Anne's County
will submit the payments to the lender for the bonds, there are five Counties that will share the expense of the debt service for the
Chesapeake College project. A receivable is booked in Government-Wide in order to offset the debt recorded on the books related to the
portion of the Chesapeake College project that the other Counties are responsible for.
CHANGE in bond receivable related to 2014 bonds ( 181,152)
Liability for retirement incentive
As part of the retirement incentives offered in fiscal year 2018, retirees were given a certain period of health insurance
at no cost, rather than the normal premium. The maximum period of no cost health insurance was five years. The liability for the
benefit offered to the retirees is included in the government wide statements and adjusted each year until the benefit period is over.
CHANGE in liability for the retirement incentive ( 164,981)
A portion of the County’s 2009 Bond offering was issued using Build America Bonds. As an incentive to use these bonds, the Federal
government offered an interest reimbursement grant, which offsets the County’s debt service for interest expense. Therefore, at year end,
a receivable is booked for the interest reimbursement due, but not yet received.
CHANGE in bond interest reimbursement receivable - Build America Bond ( 4,214)
Revenues that are earned but not collected within sixty days after the end of the fiscal year are not considered to
be "available" to meet current cash requirements and are deferred in the Governmental Funds to the following year. However, these revenues
are recognized in the Statement of Activities. The amount by which this type of deferred inflows increased or (decreased) relative to the
prior year is as follows:
CHANGE in Property Tax Deferred Inflows ( 208,326)
CHANGE in Income Tax Deferred Inflows 3,377,508
Issuance of long-term debt (e.g., bonds, notes, and capital leases) provides current financial resources
to Governmental Funds, while repayment of principal due for long-term debt consumes current resources. In the Statement of Net Assets,
issuing debt increases long term liabilities, while repayment reduces those liabilities.
ADD retirements and repayments made on long term debt 8,141,790
SUBTRACT proceeds of debt ( 16,908,973)
SUBTRACT College reimbursement received ( 203,379)
ADD County's allocation to College for debt 55,124
SUBTRACT Deferred Refunding Costs ( 211,377)
( 9,126,815)
Some accrued expenses, reported in the Statement of Activities, do not require the use of current financial
resources and are not reported as expenditures in the Governmental Funds.
CHANGE in:
Accrued Interest Payable ( 58,559)
Accrued Other Post Employment Benefit Obligation ( 1,264,048)
Net pension liability - Maryland State Pension 3,083,644
Accrued Compensated Absences ( 7,592)
Deferred outflow of resources - Other Post-Employment Benefit Obligations 222,281
Deferred outflow of resources - Maryland State Pension (see Note 12) ( 1,120,448)
Deferred inflow of resources - Maryland State Pension (see Note 12) ( 1,536,191)
Change in Net Position - governmental activities, per Statement of Activities $ 7,246,927
The accompanying notes to the basic financial statements are an integral part of this statement.
-39-

QUEEN ANNE'S COUNTY, MARYLAND QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION STATEMENT OF NET POSITION
ENTERPRISE FUNDS ENTERPRISE FUNDS
JUNE 30, 2018 JUNE 30, 2018
(CONTINUED)
SANITARY DISTRICT
SEWER WATER RESTRICTED
ASSETS OPERATIONS OPERATIONS FUND
Current Assets
Unrestricted
Equity in Pooled Cash $ 7,953,070 $ 4,353,939 $ -
Accounts Receivable (Net) 320,289 2 11,444 -
Due from Other Governments - - -
Bond Interest Reimbursement Receivable - Build America Bond - - -
Inventories 682,710 - -
Restricted
Restricted Equity in Pooled Cash - - 6,988,210
Restricted Accounts Receivable (Net) - - 5,514
Total Current Assets 8,956,069 4,565,383 6,993,724
Noncurrent Assets
Restricted
Special Assessments Receivable (Net) - - 9 68,558
Capital Assets 1 15,285,813 29,291,693 -
Less Accumulated Depreciation (47,674,430) (10,108,213) -
Total Capital Assets, Net of Depreciation 67,611,383 19,183,480 -
Total Noncurrent Assets 67,611,383 19,183,480 9 68,558
Total Assets 76,567,452 23,748,863 7,962,282
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflow for Other Post-Employment Benefit Obligation 23,519 6,849 -
Deferred Outflow for Pension Contributions 424,937 1 23,988 -
Deferred Charge on Refunding - - -
Total Deferred Outflows of Resources 448,456 1 30,837 -
LIABILITIES
Current Liabilities
Payable from Unrestricted Assets
Accounts Payable 1,458,122 1 15,043 3 6,766
Accrued Interest Payable 82,857 - -
Escrow Deposits 75,272 - -
Due to Other Funds - - -
Unearned Revenue 195,565 - -
Current Portion of Compensated Absences 147,754 5 3,820 -
Current Portion of Bonds/Notes Payable 924,815 - -
Total Current Liabilities 2,884,385 1 68,863 3 6,766
Noncurrent Liabilities
Payable from Unrestricted Assets
Compensated Absences 88,466 3 2,224 -
Other Post-Employment Benefit Obligation 5,485,806 1,627,532 -
Net Pension Liability 1,590,547 4 62,910 -
Bonds/Notes Payable 24,560,006 - -
Total Noncurrent Liabilities 31,724,825 2,122,666 -
Total Liabilities 34,609,210 2,291,529 3 6,766
DEFERRED INFLOWS OF RESOURCES
Deferred Inflow for Pension Contributions 202,633 5 9,219 -
Unavailable Water and Sewer Assessments - - 9 68,558
Total Deferred Inflows of Resources 202,633 5 9,219 9 68,558
NET POSITION
Net Investment in Capital Assets 42,126,562 19,183,480 -
Amounts Restricted for:
Debt Service - - -
Unrestricted Amounts (Deficit) 77,503 2,345,472 6,956,958
Total Net Position $ 4 2,204,065 $ 21,528,952 $ 6,956,958
The accompanying notes to the basic financial statements are an integral part of this statement.
-40-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
ENTERPRISE FUNDS
JUNE 30, 2018
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ - $ 12,307,009 $ - $ 8 21,127 $ 13,128,136
- 531,733 28,575 5 5,747 6 16,055
- - 58,553 1 2,000 7 0,553
- - 533 2,840 3,373
- 682,710 24,493 5,771 7 12,974
1,060,045 8,048,255 - - 8 ,048,255
89 5,603 - - 5,603
1,060,134 21,575,310 112,154 8 97,485 22,584,949
- 968,558 - - 9 68,558
- 144,577,506 23,305,188 9,302,012 177,184,706
- (57,782,643) (4,759,834) (1,821,005) (64,363,482)
- 86,794,863 18,545,354 7,481,007 112,821,224
- 87,763,421 18,545,354 7,481,007 113,789,782
1,060,134 109,338,731 18,657,508 8,378,492 136,374,731
- 30,368 301 1,194 3 1,863
- 548,925 17,227 4 9,014 6 15,166
- - 12,984 1 3,099 2 6,083
- 579,293 30,512 6 3,307 6 73,112
- 1,609,931 9,740 6 4,796 1 ,684,467
- 82,857 24,592 1 2,460 1 19,909
- 75,272 18,000 - 9 3,272
- - 1,305,335 6 48,061 1 ,953,396
- 195,565 - 2,270 1 97,835
- 201,574 10,956 2 7,101 2 39,631
- 924,815 114,628 1 36,556 1 ,175,999
- 3,090,014 1,483,251 8 91,244 5 ,464,509
- 120,690 6,559 1 6,227 1 43,476
- 7,113,338 274,974 2 99,838 7 ,688,150
- 2,053,457 62,733 1 82,965 2 ,299,155
- 24,560,006 1,808,002 9 17,009 27,285,017
- 33,847,491 2,152,268 1,416,039 37,415,798
- 36,937,505 3,635,519 2,307,283 42,880,307
- 261,852 8,143 2 3,562 2 93,557
- 968,558 - - 9 68,558
- 1,230,410 8,143 2 3,562 1 ,262,115
- 61,310,042 16,635,708 6,440,541 84,386,291
1,060,134 1,060,134 - - 1 ,060,134
- 9,379,933 (1,591,350) (329,587) 7 ,458,996
$ 1,060,134 $ 71,750,109 $ 15,044,358 $ 6,110,954 $ 92,905,421
The accompanying notes to the basic financial statements are an integral part of this statement.
-41-

QUEEN ANNE'S COUNTY, MARYLAND QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE FUNDS ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2018 FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
SANITARY DISTRICT
SEWER WATER RESTRICTED
OPERATIONS OPERATIONS FUND
OPERATING REVENUES
Charges for Services $ 5,874,451 $ 2,341,447 $ 998,485
Intergovernmental 90,000 - -
Bond Interest Reimbursement - Build America Bond - - -
Material Sales 60,688 12,567 -
Miscellaneous Revenues 21,675 146,136 -
Total Operating Revenues 6,046,814 2,500,150 998,485
OPERATING EXPENSES
Cost of Sales and Services
Collection 2,784,845 - -
Distribution - 304,224 -
Treatment 1,534,746 1,361,861 -
Shop 251,515 78,574 -
Airport - - -
Recreation - - -
Total Cost of Sales and Services 4,571,106 1,744,659 -
Administration and Inspection 922,849 578,076 -
Other Post-Employment Benefit Contributions 110,229 32,101 -
Pension Liability Adjustment (6,842) 771 -
Depreciation 3,100,986 611,021 -
Total Operating Expenses 8,698,328 2,966,628 -
Operating Income (Loss) (2,651,514) ( 466,478) 998,485
NON-OPERATING REVENUES (EXPENSES)
Investment Income 115,684 96,379 220,512
Interest Expense (280,804) - -
(Loss) on Disposal of Capital Assets (351,349) - -
Total Non-Operating Revenues (Expenses) (516,469) 96,379 220,512
Income (Loss) Before Contributions and Transfers (3,167,983) ( 370,099) 1,218,997
Capital Contributions, Fees and Grants 1,746,166 2,452,212 -
TRANSFERS
Transfers In 1,059,710 - 61,872
Transfers Out (5,000) ( 5,000) ( 1,227,444)
Net Transfers In (Out) 1,054,710 ( 5,000) ( 1,165,572)
Change in Net Position (367,107) 2,077,113 53,425
Total Net Position - Beginning of Year, as Previously Reported 43,021,023 19,585,362 6,903,533
Adjustments to Restate Beginning Net Position (449,851) ( 133,523) -
Total Net Position - Beginning of Year 42,571,172 19,451,839 6,903,533
Total Net Position - End of Year $ 42,204,065 $ 21,528,952 $ 6,956,958
The accompanying notes to the basic financial statements are an integral part of this statement.
-42-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ - $ 9,214,383 $ 25,857 $ 791,647 $ 10,031,887
- 90,000 58,718 93,434 242,152
- - 2,140 11,395 13,535
- 73,255 160,171 46,595 280,021
- 167,811 401,844 16,203 585,858
- 9,545,449 648,730 959,274 11,153,453
- 2,784,845 - - 2,784,845
- 304,224 - - 304,224
- 2,896,607 - - 2,896,607
- 330,089 - - 330,089
- - 536,426 - 536,426
- - - 821,045 821,045
- 6,315,765 536,426 821,045 7,673,236
- 1,500,925 - - 1,500,925
- 142,330 1,414 5,595 149,339
- (6,071) (1,236) 3,362 (3,945)
- 3,712,007 436,859 165,418 4,314,284
- 11,664,956 973,463 995,420 13,633,839
- ( 2,119,507) (324,733) (36,146) (2,480,386)
6,736 439,311 405 - 439,716
- ( 280,804) (103,705) (48,696) (433,205)
- ( 351,349) - - (351,349)
6,736 ( 192,842) (103,300) (48,696) (344,838)
6,736 ( 2,312,349) (428,033) (84,842) (2,825,224)
- 4,198,378 - - 4,198,378
1,227,444 2,349,026 73,284 119,742 2,542,052
(1,121,582) ( 2,359,026) - - (2,359,026)
105,862 ( 10,000) 73,284 119,742 183,026
112,598 1,876,029 (354,749) 34,900 1,556,180
947,536 70,457,454 15,422,075 6,100,685 91,980,214
- ( 583,374) (22,968) (24,631) (630,973)
947,536 69,874,080 15,399,107 6,076,054 91,349,241
$ 1,060,134 $ 71,750,109 $ 15,044,358 $ 6,110,954 $ 92,905,421
The accompanying notes to the basic financial statements are an integral part of this statement.
-43-

QUEEN ANNE'S COUNTY, MARYLAND QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CASH FLOWS STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
SANITARY DISTRICT SANITARY DISTRICT
SEWER WATER RESTRICTED
OPERATIONS OPERATIONS FUND
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 5,687,648 $ 2,310,364 $ 1,035,795
Receipts from other operating sources 1 72,363 1 58,703 -
Receipts from bond interest reimbursement - Build America Bond - - -
Payments to suppliers (5,017,022) (1,188,150) -
Payments to employees and on behalf of employees (3,355,202) (1,136,041) -
Net Cash Provided (Used) by Operating Activities (2,512,213) 1 44,876 1,035,795
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in from other funds 1,059,710 - 6 1,872
Receipts from interfund loans - - -
Transfers to other funds (5,000) (5,000) (1,227,444)
Principal paid on interfund loans - - -
Net Cash Provided (Used) by Noncapital Financing Activities 1,054,710 (5,000) (1,165,572)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from the disposition of capital assets 2 5,000 - -
Principal paid on capital debt (915,658) - -
Receipts from state loan 10,103,735 - -
Interest paid on capital debt (243,715) - -
Acquisition and construction of capital assets (7,338,083) (229,925) -
Net Cash Provided (Used) by Capital and Related Financing Activities 1,631,279 (229,925) -
CASH FLOWS FROM INVESTING ACTIVITIES
Net Cash Provided by Investing Activities - Investment Income 1 15,684 9 6,379 2 20,512
Net Increase in Cash and Cash Equivalents 2 89,460 6 ,330 9 0,735
Balances - Beginning of the year 7,663,610 4,347,609 6,897,475
Balances - End of the year $ 7,953,070 $ 4,353,939 $ 6,988,210
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (loss) $ (2,651,514) $ (466,478) $ 998,485
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation 3,100,986 6 11,021 -
Effect of changes in operating assets and liabilities:
Accounts receivable, net 2 ,860 (31,083) 544
Special assessments receivable, net - - 1 60,293
Operating grants receivable - - -
Build America Bonds Interest receivable - - -
Inventories and Prepaid Expenses (23,250) - -
Vendor accounts payable (2,864,442) (3,276) 3 6,766
Compensated absences 9 ,423 1 ,820 -
Other Post-Employment Benefit Obligation 1 10,229 3 2,101 -
Pension Obligation (6,842) 771 -
Escrow deposits payable 2 2,755 - -
Deferred revenue collected in advance (212,418) - (160,293)
Net Cash Provided (Used) by Operating Activities $ (2,512,213) $ 144,876 $ 1,035,795
Noncash investing, capital and financing activities:
Donation of capital assets (infrastructure) by developers $ 1,746,166 $ 2,452,212 $ -
The accompanying notes to the basic financial statements are an integral part of this statement.
-44-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ 2 $ 9,033,809 $ 3 4,821 $ 776,779 $ 9,845,409
- 3 31,066 6 08,125 1 65,838 1,105,029
- - 2 ,168 1 1,540 1 3,708
- (6,205,172) (404,843) (492,679) (7,102,694)
- (4,491,243) (131,247) (351,899) (4,974,389)
2 (1,331,540) 1 09,024 1 09,579 (1,112,937)
1,227,444 2,349,026 7 3,284 1 19,742 2,542,052
- - 1,305,335 6 48,061 1,953,396
(1,121,582) (2,359,026) - - (2,359,026)
- - (1,275,420) (583,544) (1,858,964)
1 05,862 (10,000) 1 03,199 1 84,259 2 77,458
- 2 5,000 - - 2 5,000
- (915,658) (102,500) (121,553) (1,139,711)
- 10,103,735 - - 10,103,735
- (243,715) (110,128) (52,829) (406,672)
- (7,568,008) - (103,166) (7,671,174)
- 1,401,354 (212,628) (277,548) 9 11,178
6 ,736 4 39,311 405 - 4 39,716
1 12,600 4 99,125 - 1 6,290 5 15,415
9 47,445 19,856,139 - 8 04,837 20,660,976
$ 1,060,045 $ 20,355,264 $ - $ 821,127 $ 21,176,391
$ - $ (2,119,507) $ (324,733) $ (36,146) $ (2,480,386)
- 3,712,007 4 36,859 1 65,418 4,314,284
2 (27,677) 8 ,064 (14,621) (34,234)
- 1 60,293 - - 1 60,293
- - (12,608) 9 ,606 (3,002)
- - 28 145 173
- (23,250) 594 (648) (23,304)
- (2,830,952) (4,777) (21,341) (2,857,070)
- 1 1,243 4 ,519 (1,544) 1 4,218
- 1 42,330 1 ,414 5 ,595 1 49,339
- (6,071) (1,236) 3 ,362 (3,945)
- 2 2,755 900 - 2 3,655
- (372,711) - (247) (372,958)
$ 2 $ (1,331,540) $ 109,024 $ 109,579 $ (1,112,937)
$ - $ 4,198,378 $ - $ - $ 4,198,378
The accompanying notes to the basic financial statements are an integral part of this statement.
-45-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF FIDUCIARY NET POSITION
PRIVATE PURPOSE TRUST, OTHER POST-EMPLOYMENT BENEFIT TRUST, AND AGENCY FUNDS
JUNE 30, 2018
PRIVATE
PURPOSE
TRUST FUND OTHER
TAX SALE POST-EMPLOYMENT AGENCY
DEPOSITS BENEFIT TRUST FUND FUNDS
ASSETS
Cash and Cash Equivalents $ 46,302 $ 1 ,586,737 $ 5 63,536
Investments, at Fair Value
Debt Securities - 1 ,227,549 -
Fixed Income Fund - 2 44,636 -
Mutual and Global Funds - 2 ,109,987 -
International - 7 86,330 -
Total Investments - 4 ,368,502 -
Total Assets 46,302 5 ,955,239 $ 5 63,536
LIABILITIES
Accrued Expenses - 7 ,573 $ 1 ,500
Due to Other Governments - 1 57,645 4 1,274
Deposits and Escrows - - 5 20,762
Total Liabilities - 1 65,218 $ 5 63,536
NET POSITION
Held in Trust $ 46,302 $ 5 ,790,021
The accompanying notes to the basic financial statements are an integral part of this statement.
-46-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE PURPOSE TRUST AND OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2018
PRIVATE
PURPOSE
TRUST FUND
TAX SALE
DEPOSITS
ADDITIONS
Total Additions - Tax Sale Collections in Excess of Tax Due $ 3 ,368
DEDUCTIONS
Distributions to Property Holders 2 15,727
Change in Assets ( 212,359)
NET POSITION HELD IN TRUST
Net Position-Beginning of Year 2 58,661
Net Position-End of Year $ 4 6,302
OTHER
POST-EMPLOYMENT
BENEFIT TRUST FUND
ADDITIONS
CONTRIBUTIONS
Employers $ 4,853,116
Members 1,149,571
Total Contributions 6,002,687
Investment Earnings
Interest 1 18,838
Net Increase in the Fair Value of Investments 1 13,050
Total Investment Gain 2 31,888
Less Investment Expenses ( 2,196)
Net Investment Gain 2 29,692
Total Additions 6,232,379
DEDUCTIONS
Claims Paid 4,769,245
Administrative Expenses 1 8,925
Total Deductions 4,788,170
Change in Assets 1,444,209
NET POSITION HELD IN TRUST
Net Position-Beginning of Year 4,345,812
Net Position-End of Year $ 5,790,021
The accompanying notes to the basic financial statements are an integral part of this statement.
-47-

QUEEN ANNE'S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
INDEX
Note
1 Summary of Significant Accounting Policies 49-60
2 Budgets and Budgetary Accounting 60-61
3 Cash, Investments and Investment Income 62-66
4 Accounts Receivable 67-68
5 Unearned Revenue 69
6 Capital Assets 70-74
7 Interfund Receivables and Payables 75
8 Interfund Transfers 76
9 Noncurrent Liabilities 77-86
10 Restricted Assets and Liabilities
and Fund Balances 87-89
11 Risk Management 90
12 Retirement Plans 91-100
13 Deferred Compensation Plan 100
14 Other Post-Employment Benefits 100-113
15 Deficit Equity Balances 114
16 Commitments and Contingencies 114-116
17 Joint Venture 116
18 Pollution Remediation Obligations 117
19 Prior Period Restatement 118
-48-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the County conform to accounting principles generally accepted in the United States of
America (GAAP) applicable to local government entities. The following is a summary of significant policies.
A. REPORTING ENTITY
Queen Anne’s County, Maryland (the County) was founded in 1706. The County is governed by five Commissioners who are
elected to serve four-year terms. This board assumes responsibilities conferred upon them by the Maryland General Assembly under
Code Home Rule and provides the following services: public safety, public facility/infrastructure maintenance and improvements,
sanitation, health and social services, education, recreation and culture, library, conservation of natural resources, economic and
community development, and general administrative services.
As required by GAAP, these financial statements present the primary government and its component units, which are entities for
which the primary government is considered financially accountable. The decision to include a potential component unit in the
financial reporting entity was made by applying the criteria set forth in the Government Accounting Standards Board (GASB)
Statements No. 14 and 39. Blended component units, although separate entities, are in substance, part of the government’s
operations. However, each discretely presented component unit is reported in a separate column in the government-wide financial
statements (see note below for descriptions) to emphasize that it is legally separate from the government.
Blended Component Units
The Queen Anne’s County Sanitary District serves citizens of the government and is governed by a board comprised of the
government’s elected Commissioners. The rates for user charges and bond issuance authorizations are approved by the Board of
Commissioners and the legal liability for the general obligation portion of the District’s debt remains with the government. The
Sanitary District is reported as an enterprise fund.
The Queen Anne’s County Roads Board serves all the citizens of the government and is governed by a board comprised of the
government’s elected Commissioners. All operations of the Roads Board are approved by the Board of Commissioners and the legal
liability for any debt remains with the government. The Roads Operating Fund is included in with the General Fund.
Discretely Presented Component Units
Components units are legally separate entities that are included in the County’s reporting entity because of the significance of their
operating or financial relationships with the County. The criteria for including organizations as component units within the County’s
reporting entity include whether:
 the organization is legally separate
 the County Commissioners appoint a voting majority of the organization’s board
 the County Commissioners have the ability to impose their will on the organization
 the organization has the potential to impose a financial benefit/burden on the County
 the organization is fiscally dependent on the County
Based on the application of these criteria, the following organizations are considered component units of Queen Anne’s County
Government. Their financial data is discretely presented in separate columns in the government-wide financial statements. Both
discretely presented component units have a June 30 year end.
The Board of Education of Queen Anne’s County is a five-member body responsible for the operation of Queen Anne’s County
Schools. Beginning with the November 2008 election, the members were elected by the County voters. The Board of Education is a
component unit of Queen Anne’s County, Maryland by virtue of the Board’s fiscal dependency on the County through the County’s
responsibility for levying taxes, issuing debt, and its budgetary control over the Board of Education.
The Queen Anne’s County Free Library is a component unit of the Queen Anne’s County Government by virtue of the Library’s
fiscal dependency on the County. The County levies taxes and approves the Library’s budget. The Library Board of Trustees
governs the Library. Vacancies on the Board of Trustees are filled by vote of the remaining members of that Board.
-49-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. REPORTING ENTITY (CONTINUED)
Discretely Presented Component Units (continued)
Complete financial statements of the discretely presented component units can be obtained from their respective administrative
offices listed below:
Board of Education of Queen Anne’s County
Queen Anne’s County Free Library
202 Chesterfield Avenue 121 S. Commerce Street
Centreville, Maryland 21617 Centreville, MD 21617
Joint Venture
The operation of the Midshore Regional Landfill is considered a joint venture of the County. Disclosure of the County’s
participation in this joint venture is presented in Note 17.
Complete financial statements can be obtained at the joint ventures’ administrative office listed below:
Maryland Environmental Service
259 Najoles Road
Millersville, Maryland 21108
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Government-Wide Financial Statements – The government-wide financial statements report information on all of the non-
fiduciary activities of the Primary Government and its component units. Since, by definition, assets of fiduciary funds are held for the
benefit of a third party (other local governments, private parties, etc.) and cannot be used to address activities or obligations of the
County, these funds are not incorporated into the government-wide statements.
Interfund activity within the primary government’s governmental activities and business-type activities has been
eliminated from the government-wide statements. Interfund services provided and used are not eliminated in the process
of consolidation. Residual balances between the governmental and business-type categories are presented on the
Statement of Net Position as “Internal balances”.
Governmental activities of the Primary Government, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
Statement of Net Position – This statement is designed to display the financial position of the reporting entity as of year-end.
Governments report all capital assets, including infrastructure, in the government-wide Statement of Net Position and report
depreciation expense, the cost of “using up” capital assets, in the Statement of Activities. Net position is divided into three categories:
1) net investment in capital assets; 2) restricted amounts; and 3) unrestricted amounts. Net Investment in capital assets consists of
capital assets, net of accumulated depreciation, and reduced by the outstanding balances of any bonds, mortgages, notes, or other
borrowings that are attributable to the acquisition, construction, or improvement of those capital assets. Restricted amounts are assets
for which constraints are placed due to restrictions that are either (1) externally imposed by creditors, grantors, contributors, or laws
and regulations of the government, or (2) imposed by law through constitutional provisions or enabling legislation. Unrestricted
amounts consist of net assets that do not meet the definition of restricted or invested in capital assets.
-50-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)
Statement of Activities – This statement demonstrates the degree to which the direct expenses of a given function for the fiscal year
are offset by program revenues. Therefore, this statement reflects both the gross and net costs per functional category (general
government; public safety; public works; health; social services; education; library; conservation of natural resources; and
economic/community development) that are otherwise supported by general revenues. Direct expenses (including depreciation) are
those that are clearly identifiable with a specific function. Program revenues include: 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that
are restricted to meeting the operational or capital requirements of a particular function. The operating grants and contributions
column includes operating-specific and discretionary (either operating or capital) grants, while the capital grants and contributions
column reflects capital-specific grants. Taxes and other items not properly included among program revenues are reported as general
revenues. The County does not allocate indirect expenses.
Fund Financial Statements – Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial
statements.
In the fund financial statements, financial transactions and accounts of the County are organized on the basis of funds, each of which
is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise assets, liabilities, fund balance/net assets, revenues, and expenditures/expenses.
Governmental Fund Budget-to-Actual Comparison Statements – Demonstrating compliance with the legally adopted budget is
an important component of government’s accountability to the public. The County provides a budget-to-actual comparison of the
General Fund as part of the required supplementary information section located after the Notes to the basic financial statements. A
budget-to-actual comparison is provided for the General Fund on a departmental level as required supplementary information, and
for all non-major governmental funds with legally adopted budgets in the supplementary information section.
The County and many other governments revise their original budgets over the course of the year for a variety of reasons; the
County’s amended budget is reflected in a separate column in the budget-to-actual comparison statements. Variances are calculated
based on final budgets.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
Measurement Focus and Basis of Accounting
Full Accrual Basis Financial Statements – The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenue in the year in which they are levied. Grants and similar items are recognized as revenues as soon as all
eligibility requirements imposed by the provider have been met. Capital assets and related depreciation are recorded in these
statements, as well as debt, accrued compensated absences, other post-employment benefits, and other accruals.
Modified Accrual Basis Financial Statements – Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting.
-51-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
Revenues are recorded as soon as they are susceptible to accrual (i.e., when they are both measurable and available). Revenues are
considered to be available when they are collectible within the current period, or soon enough thereafter to pay liabilities of the
current period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures are recorded only when payment has matured and is due. Similarly, expenditures related to claims, judgments,
compensated absences, and other post-employment benefits are recorded only to the extent that they are expected to be liquidated
with expendable available financial resources. Capital assets, and related depreciation, as well as long-term liabilities are not
recorded in these statements.
In applying the susceptible to accrual concept to income taxes (distributed by the State), property taxes, and inter-governmental
revenues other than grants, the County defines “available” as received within 60 days after year-end.
In the State of Maryland, the State has assumed responsibility for the collection of all income taxes and for distributing those
collections to the respective counties. The counties set their individual tax rates within limits provided by State law. However,
collection and pursuit of delinquent taxes are the responsibility of the State. The County records estimated receivables relating to
income taxes when the underlying income is earned. Amounts not received within 60 days are reported as deferred inflows of
resources. At year-end, deferred revenue relating to income taxes primarily includes the final fiscal year distribution (which is
normally received in September after the fiscal year-end) and amounts related to late filers, delinquent returns and audits, and
unallocated withholding, all of which are not received within the County’s availability period. Most deferred inflows are expected to
be received from the State within the next fiscal year; however, collections related to delinquent returns and audits as well as
unallocated withholding may not be remitted to the County for several years.
In applying the susceptible to accrual concept to operating and capital grants, which are classified with intergovernmental revenues in
the fund financial statements, the County records receivables when the applicable eligibility requirements including time requirements
are met. Related revenues are recognized to the extent that cash is expected to be received within one year of year-end. Resources
received before the eligibility requirements are met are reported as unearned revenue.
Licenses and permits, charges for services, and miscellaneous revenues (except earnings on investments) are generally recorded as
revenues when received in cash during the year. At year-end, receivables are recorded for significant amounts due. If such amounts
are received in cash after year-end within the County’s 60-day availability period, they are recognized as revenue. Benefit assessment
receivables not billed at year end are reported as deferred inflows of resources.
Fiduciary Funds – The County’s trust fund financial statements are reported using the economic resources measurement focus and
accrual basis of accounting, as is used by proprietary funds. Agency funds report only assets and liabilities; they do not report
changes in net position. Therefore, agency funds are reported using the accrual basis of accounting to recognize receivables and
payables. Activity during the year is accounted for as additions to and deductions from asset and liability accounts (for Agency
Funds) and Net Position (for Private Purpose and Other Post-Employment Benefit Trust Funds). Since fiduciary funds are, by their
very nature, independent of the County, they are omitted from all government-wide statements.
Financial Statement Presentation - The County reports the following major governmental and proprietary funds, as well as
fiduciary funds.
-52-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
General Fund – This fund is the general operating fund of the County. It is used to account for all financial resources
except those required or recommended, by GAAP, to be accounted for in another fund.
Capital Projects Funds –
General Capital Projects - This fund accounts for financial resources to be used for the acquisition or construction
of major capital facilities, as well as other large multi-year projects that relate to capital assets, that are financed
from general governmental resources.
Roads Capital Projects - This fund accounts for financial resources to be used for the construction of County Road
infrastructure, as well as other large multi-year projects that relate to capital assets, that are financed from grants
received from State and Federal Governments, Highway User Tax funds, and general governmental resources.
Non-Major Governmental Funds – There are nineteen non-major governmental funds, which are used to account for and
report the proceeds of specific revenue sources. Included in the nineteen non-major governmental funds are sixteen special
revenue funds and three capital project funds.
Major Enterprise Funds - Enterprise Funds are used to account for those activities of the Primary Government that are
financed and operated in a manner similar to private business enterprises in that all costs and expenses, including
depreciation, are recovered primarily or partially through user charges. The Sanitary District Funds are intended to be self-
supporting as a whole, while the Airport is intended to be only partially self-supporting. The County reports the following
major enterprise funds:
Sanitary District -
Sewer Operations - This fund is used to account for the operation of the sewer system serving
approximately 7,490 customers.
Water Operations - This fund is used to account for the operation of the water supply system serving
approximately 4,430 customers.
Restricted Fund - This fund is used to account for the proceeds of sewer and water capacity charges
(one-time allocation fees) and is used to fund capital and debt service expenses.
Debt Service Fund - This fund is used to account for the collection of special benefit assessments, and
financial resources from other sources, to fund debt associated with construction of water and sewer
facilities in accordance with debt covenants.
Bay Bridge Airport – This fund is used to account for the operation of the County’s airport that serves small,
private aircraft.
-53-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
Non-Major Enterprise Funds – Non-major Enterprise Funds account for activities which are commercial in nature and
are primarily or partially intended to be self-supporting. The County has two non-major enterprise funds, neither of which
is meant to be fully self-supporting. These funds include the Golf Course and Public Landings and Marinas.
Fiduciary Funds – Fiduciary Funds are used to report assets held in a trustee or agency capacity for entities other than the
County. The County reports the following fiduciary fund types:
Private-Purpose Trust Fund – This fund accounts for an arrangement under which monies received at tax sale, in
excess of taxes due, are legally held in trust for property owners who have not been located within a legally-defined
time frame.
Other Post-Employment Benefit Trust Fund– This fund accounts for the funding of retiree benefit plans of
Queen Anne’s County and other participating agencies, which are the Queen Anne’s County Board of Education
and Queen Anne’s County Free Library. Other agencies and political subdivisions have the right to
participate in this Trust Fund also, as an investment vehicle for their Other Post-Employment Benefit Plan
through the pooling of investment resources.
Agency Funds - These funds are used to account for assets held in a purely custodial capacity where the County
receives, temporarily invests, and remits such resources to individuals, private organizations or other governments.
These monies include escrow deposits for tax ditches, zoning deposits, state and town tax collections, motor vehicle
administration deposits, and abandoned property.
Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year’s
presentation.
The financial statements of the County have been prepared in conformity with generally accepted accounting principles
(GAAP) as applied to local government units. The Governmental Accounting Standards Board (GASB) is the accepted
standard-setting body for establishing governmental accounting and financial principles. The most significant of the
County’s accounting policies are described below.
In the process of aggregating data for the Statement of Net Position and the Statement of Activities, some amounts reported as
interfund activity and balances in the funds should be eliminated or reclassified. As a general rule, the effect of interfund activity has
been eliminated from the government-wide financial statements. The effect of interfund services provided and used between
functions has not been eliminated in the Statement of Activities, since to do so would distort the direct costs and program revenues
reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally
result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing
operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating
expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
-54-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY
1) Cash and Investments
Cash and Cash Equivalents – For Statement of Cash Flows reporting purposes, the County has defined “cash
equivalents” as short-term, highly liquid investments that are both readily convertible to known amounts of cash and so
near their maturity that they present an insignificant risk of changes in value because of changes in interest rates.
Generally, only investments with maturities of three months or less at time of purchase meet this definition. The
balance sheet classification for “cash and cash equivalents” in the Statement of Cash Flows includes the following:
“Equity in pooled cash and investments,” “Cash and cash equivalents,” and “Restricted Equity in pooled cash and
investments.”
2) Receivables and Payables
Due To/From Other Funds and Internal Balances – Activity between funds that are representative of
lending/borrowing arrangements outstanding at the end of the year are current and are referred to as “due to/from other
funds.” On the Statement of Net Position, these balances are referred to as “internal balances” and are reported as
positive and negative “assets” that net to zero for the primary government as a whole.
Trade Accounts Receivable – Trade and other receivables are shown net of an allowance for uncollectible accounts.
The allowance for uncollectible accounts is calculated based on historical collection data and, in some cases, specific
account analysis.
3) Inventories, Prepaids, and Other Assets
Inventories consisting of materials, parts and supplies are stated at the lower of cost or market with cost determined by
the first-in, first-out method. For budgetary purposes, the cost is recorded as an expenditure at the time individual
inventory items are purchased (purchase method). The consumption method is used for financial reporting purposes
whereby expense is recognized as the items are used (consumed). Reported inventories are equally offset by a fund
balance reserve. Inventories in the Proprietary Funds are also recorded using the consumption method.
Prepaid items are payments made to vendors for services that will benefit periods beyond the end of the fiscal year.
4) Capital Assets
Capital assets, which include property, plant, equipment, intangibles, and infrastructure assets (e.g. 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 County
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. Such assets are valued at cost where historical records are available and at estimated historical cost where
no historical records exist. Donated capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value or functionality of the asset, or materially
extend asset lives, are not capitalized.
Land and other inexhaustible assets such as intangible property easements and other land usage rights are capitalized
but not depreciated, as these assets are expected to have indefinite useful lives.
-55-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
4) Capital Assets (continued)
Major outlays for capital assets and improvements are capitalized as the projects are constructed. Interest is
capitalized on proprietary fund assets acquired with tax-exempt debt. The amount of interest to be capitalized is
calculated by offsetting interest expense, incurred from the date of the borrowing until completion of the project, with
interest earned on invested proceeds over the same period. Capital projects that are under construction and not yet
ready for their intended use at year-end are classified as “construction in progress” (CIP).
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Assets Years
Buildings and structures 20 - 50
Improvements other than buildings 15 - 50
Infrastructure 20 - 50
Machinery and equipment 5 - 20
Office furniture, fixtures and equipment 5 - 15
Vehicles 7 – 10
5) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net
position that applies to a future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then.
In addition to liabilities, the statement of financial position will report a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net
position that applies to a future period(s) and so will not be recognized as an inflow of resources until that time.
6) Other Post-Employment Benefit Obligation (OPEB)
Primary Government – The Queen Anne’s County post-employment plan provides medical insurance benefits to
retirees and their eligible dependents. The Plan’s financial information is prepared based on full accrual accounting.
Expenses are recognized on the accrual basis as retirees’ insurance costs are incurred. Typically, OPEB liabilities are
liquidated in the following governmental funds: the General Fund, Department of Aging, Housing and Community
Services, and Community Partnerships for Children. OPEB liabilities are also liquidated in the following enterprise
funds: Sanitary Sewer, Sanitary Water, Bay Bridge Airport, Golf Course, and Public Landings and Marinas.
Additional details regarding other post-employment benefits can be found in Notes 9 and 14.
In both the government-wide and enterprise funds, liability for other post-employment benefits is adjusted at the end of
the fiscal year. For the year ended June 30, 2018, the net other post-employment benefit obligation amounted to
$48,899,484, including both governmental ($41,211,334) and business-type activities ($7,688,150).
Component Unit - Board of Education – For the year ended June 30, 2018, the net other post-employment benefit
obligation for the Board of Education amounted to $171,829,758.
Component Unit – Free Library – For the year ended June 30, 2018, the net other post-employment benefit
obligation for the Library amounted to $463,470.
-56-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
7) Net Pension Liability
Primary Government – The Queen Anne’s County government participates in the Maryland State Retirement and
Pension Systems. Beginning in fiscal year 2015, the County was required to report the net pension liability associated
with this system. Typically, pension liabilities are liquidated in the following governmental funds: the General Fund,
Department of Aging, Housing and Community Services, and Community Partnerships for Children. Pension
liabilities are also liquidated in the following enterprise funds: Sanitary Sewer, Sanitary Water, Bay Bridge Airport,
Golf Course, and Public Landings and Marinas. Additional details regarding retirement benefits can be found in Notes
9 and 12. For the year ended June 30, 2018, the net pension liability amounted to $26,661,766, including both
governmental ($24,362,611) and business-type activities ($2,299,155).
Component Unit - Board of Education – For the year ended June 30, 2018, the net pension liability for the Board of
Education amounted to $4,399,321.
8) Compensated Absences
Primary Government – The County’s policy is to pay employees for any unused vacation time, up to a maximum of
65 days, upon termination of employment. Compensated absences are reported in governmental funds only if they
have matured, such as payments upon termination of employment, vacation, and compensatory time paid as they are
used during the year. Such time is paid as regular wages. Compensated absences are reported in enterprise funds as
they are accrued. In the government-wide statements, the liability for compensated absences is adjusted at the end of
each fiscal year to current salary costs. Accumulated unpaid leave of the County amounted to $2,944,194 at June 30,
2018, including both governmental ($2,561,087) and business-type activities ($383,107).
Component Unit - Board of Education – Accumulated unpaid annual leave is accrued when earned in the
Unrestricted Current Expense Fund using the modified accrual basis of accounting. In fiscal year 1992, the Board
adopted the practice of paying for any unused vacation time, up to the maximum number of days that employees can
carry over from one year to the next, upon termination of employment. Maximum number of days varies from 20 to
30 days, depending on classification. Liabilities for compensated absences are inventoried at the end of each fiscal
year and adjusted to current salary costs. Accumulated compensated absences as of June 30, 2018 amounted to
$818,927. Because payment of sick leave is contingent upon employees’ future illness or retirement, the Board of
Education expects its commitment to provide sick leave to be met during the normal course of activities over the
working lives of its present employees. Any accumulated unused sick leave at retirement will ultimately be taken into
consideration and paid through retirement benefits by the State of Maryland.
9) Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term
debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type
activities, or proprietary fund type statements of net assets. Bond premiums are deferred and amortized over the life of
the bonds using the bonds outstanding method. Bonds payable in the proprietary fund financial statements and
noncurrent liabilities in the government-wide financial statements are reported net of the applicable bond premium or
discount. Bond issuance costs are reported in the period in which they have been incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond
issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as expenditures. When debt is refunded in an advance refunding, payments to the Bond Refunding Agent
and associated bond issuance costs are reported as other financing uses. When debt is refunded in a current refunding,
the principal on refunded debt is reported as other financing uses.
-57-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
10) Net Position/Fund Equity
In the government-wide financial statements, the County has reported an unrestricted net deficit of $50,566,757. This
deficit is due to the fact that the County issues general obligation bonded debt for purposes of capital construction on
behalf of the Queen Anne’s County Board of Education. The capital assets constructed with the proceeds of this debt
are reported on the financial statements of Queen Anne’s County Board of Education. This amount is also classified as
net investment in capital assets in the Board of Education column of the Component Units section of the County’s
government-wide Statement of Net Position. Since the Board of Education is not authorized to borrow funds, they do
not have any debt.
Since the issuance of such debt has not resulted in capital assets owned by the Primary Government, the effect of this
debt is reflected in a deficit balance in unrestricted net assets in the Governmental Activities column of the
government-wide Statement of Net Position. At June 30, 2018, the County has reported outstanding general
obligation debt related to assets held by the Board of Education amounting to $58,625,356 (of which $57,168,629 has
been spent and the remaining $1,456,727 relates to unspent bond proceeds). Absent the effect of this relationship, the
County would have reported unrestricted net assets of governmental activities in the amount of $8,058,599.
The County reports a portion of its net position in its government-wide financial statements as restricted. In this
context, restricted means that, as of June 30, 2018, this portion of net position was restricted for a particular purpose
either by external parties; by provision of the County Charter; or by enabling legislation. Net position restricted by
enabling legislation represents legislative restrictions that a party external to the government can compel the
government to honor. For the County, such amounts represent primarily accumulated net position attributed to
revenue streams that are restricted for specified purposes in the County Code. This generally includes the Rainy Day
Fund, Capital Projects Fund impact fee collections and developer exactions on hand for outside entities; restricted
amount for special revenue funds; and ending restricted net assets of the Sanitary District and other enterprise funds.
Such amounts, which are restricted in the government-wide statement of Net Position, are as follows at year-end:
Restricted Amounts
Governmental activities $ 13,275,244
Business-type activities:
Debt Service 1,060,134
Total Restricted Amounts $ 14,335,378
Note that unspent bond proceeds of $4,539,897 are included in restricted fund balance for the General
Capital Projects Fund. At the Government-Wide level, the unspent bond proceeds are offset by the liability.
-58-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
10) Net Position/Fund Equity (continued)
In the fund financial statements, fund balances of governmental funds are classified as follows:
Nonspendable – amounts that cannot be spent either because they are not in a spendable form or because they are
legally or contractually required to be maintained intact. Nonspendable fund balances for the County include
inventory, prepaid items, and loans receivable.
Restricted – amounts that can be spent only for specific purposes because of constitutional provisions or enabling
legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or
regulations of other governments.
Committed – amounts that can be used only for specific purposes determined by a formal action of the Queen Anne’s
County Commissioners. The Commissioners are the highest level of decision-making authority for the County.
Commitments may be established, modified, or rescinded only through formal actions such as a County Ordinance
approved by the County Commissioners.
Assigned – amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be
used for specific purposes. The assignment of funds rests with the County Commissioners. In addition, GASB 54
requires all positive residual amounts in special revenue funds to be reported as assigned.
Unassigned – all other spendable amounts; however, the General Fund is the only fund permitted to have a positive
unassigned fund balance. Negative unassigned fund balances may occur in other governmental funds.
The County typically uses restricted fund balances first, followed by committed resources, and then assigned
resources, as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first to
defer the use of these other classified funds.
11) Property Tax
The County's real property tax is levied each July 1 on the assessed values certified as of that date for all taxable real
property located in the County. The levy functions as a lien against the property. Assessed values are established by
the Maryland State Department of Assessments and Taxation at estimated market value. A revaluation of all property
is required to be completed every three years. Taxes are then billed to property owners and collected by the County.
Property represented by delinquent taxes is sold at a public auction in May of the following calendar year, with title
transferring after foreclosure proceedings have been completed.
For small businesses that meet certain criteria and also principal residences, an installment plan is offered whereby
total tax is paid in two equal installments. The first installment is due by September 30. Beginning October 1, a 1%
penalty is charged on the first day of each month that the installment remains unpaid. This 1% penalty is based on the
amount of the first installment only. The second installment is due by December 31. Beginning January 1, the 1%
penalty would then include all outstanding balances. The County accepts partial payments.
For non-principal residences, payment is due in full by September 30. Beginning October 1, a penalty is charged for
each month that taxes remain unpaid. For new construction, completed and assessed between July 1 and December
31, a supplementary tax is levied equal to half of the full-year levy. Payment in full is due by March 31. Beginning
April 1, a penalty is charged for each month that taxes remain outstanding.
-59-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
11) Property Tax (continued)
Real and personal property taxes are levied at rates enacted by the County Commissioners in the annual
budget on the assessed value as determined by the Maryland Department of Assessments and Taxation. The
rates of levy cannot exceed the constant yield rate furnished by the Maryland Department of Assessments
and Taxation without public notice and only after public hearings. The County tax rate for the fiscal year ended
June 30, 2018 was $0.8471 per $100 of assessed value.
E. NEW ACCOUNTING PRONOUNCEMENTS
The County adopted the provisions of the following Governmental Accounting Standards Board Statements:
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions; GASB Statement No. 80, Blending Requirements for Certain Component Units – an amendment of
GASB Statement No. 14; GASB Statement No. 81, Irrevocable Split-Interest Agreements; GASB Statement No.
85, Omnibus 2017; and GASB Statement No. 86, Certain Debt Extinguishment Issues .
The County will be analyzing the effects of these pronouncements and plans to adopt them as applicable by their effective
date.
GASB Statement No. 83, Certain Asset Retirement Obligations; GASB Statement No. 84, Fiduciary Activities;
and GASB Statement No. 87, Leases.
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING
Pursuant to the Code of Public Local Laws of Queen Anne's County, the County Commissioners adopt an annual
operating budget and real property tax rate prior to July 1 each year. This action, taken after public hearings, provides
the spending authority for the fiscal year beginning on July 1. Unexpended and unencumbered appropriation authority
expires the following June 30, except in the case of Capital Projects where appropriations lapse only upon completion or
cancellation of each project by the County Commissioners. The appropriated budgets are prepared at the fund, function,
and departmental level. Expenditures/expenses may not legally exceed appropriations, based on the level at which they
were adopted. For the General Fund, annual expenditure budgets are legally adopted at the departmental level. For all
other Governmental Funds, for which annual budgets are adopted, expenditure budgets are legally adopted at the fund
level.
-60-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING (CONTINUED)
During the fiscal year, the Commissioners may adopt supplemental appropriations. For the year ended June 30, 2018,
supplemental appropriations were as follows:
Original Final
Supplemental Appropriations Budget Budget Increase
General Fund - expenditures and transfers $ 1 33,800,975 $ 137,343,207 $ 3,542,232
Special Revenue Funds that adopt annual budgets
Non-Major Funds that adopt annual budgets -
Department of Aging - expenditures and transfers $ 2 ,704,822 $ 2,821,660 $ 116,838
Housing & Community Services - expenditures 1 ,974,582 1,977,247 2,665
Grants Fund - expenditures - 143,505 143,505
Economic Development Incentive- expenditures - 278,496 278,496
BRIDGE Fund - transfers - 1,209,000 1,209,000
Community Partnerships for Children - expenditures 1 ,054,916 1,250,453 195,537
Agricultral Transfer - expenditures 4 0,000 300,000 260,000
Rural Legacy - expenditures - 1,507,956 1,507,956
Kent Narrows - expenditures 3 8,000 150,500 112,500
Total Special Revenue Funds that adopt annual budgets $ 5 ,812,320 $ 9,638,817 $ 3,826,497
All final budgets are presented as amended. The County Administrator may approve budget amendments of $10,000 or
less throughout the year. Amendments greater than $10,000 require the approval of the County Commissioners.
Annual operating budgets are legally adopted for the General Fund (includes the Roads Board) and the following non-
major governmental funds: Department of Aging, Housing and Community Services, Grants Fund, Economic
Development Incentive, BRIDGE Fund, Community Partnerships for Children, Law Library, Inmate Welfare,
Agricultural Transfer, Rural Legacy, Dredging Special Assessments, Kent Narrows, School Impact Fees Capital Projects,
Fire Company Impact Fees Capital Projects, and Parks and Recreation Impact Fees Capital Projects. Proprietary Fund
budgets are adopted for management control only and include all enterprise funds. Budgets are adopted using the same
method of accounting as that used for Fund reporting purposes.
Budgets for the General Capital Projects Fund and the Roads Capital Projects Fund reflect multi-year appropriations at
the individual project level. Expenditures may not legally exceed appropriations at that level and appropriations lapse at
the completion or cancellation of individual projects. Since these capital projects funds do not adopt an annual budget
per project, a Statement of Revenues, Expenditures, and Changes in Fund Balances on a budget-to-actual basis is not
presented for these funds.
No General Fund departments exceeded their legally adopted expenditure budgets for the year ended June 30, 2018.
However, salary reversions are budgeted as a lump sum negative $902,165, but actual amounts are realized in the
individual departments and are not reported as a lump sum in the reversions activity.
-61-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME
A. DEPOSITS AND INVESTMENTS
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS
Deposits are maintained in a variety of financial institutions. Statutes authorize the County to invest in obligations of the
United States Government, Federal government agency obligations, secured time deposits in Maryland banks, bankers’
acceptances, the Maryland Local Government Investment Pool, money market mutual funds, commercial paper and
repurchase agreements secured by direct government or agency obligations.
At year-end, the County Primary Government had deposits of $20,261,149 with local banks (carrying value
$21,620,263). Of those balances, $501,011 was insured by federal depository insurance (FDIC). The uninsured balances
were fully collateralized by securities placed with the respective banks’ escrow agents and held in the County’s name.
Of these options, the County participates in the Maryland Local Government Investment Pool (MLGIP), which provides
all local government units of the state with a safe investment vehicle for short-term investment of funds. The State
Legislature created MLGIP with the passage of Article 95 Section 22G, of the Annotated Code of Maryland. PNC
Financial manages the MLGIP, under administrative control of the State Treasurer. A MLGIP Advisory Committee of
current participants reviews the activities of the Fund on a quarterly basis and provides suggestions to enhance the pool.
The MLGIP portfolio is managed in a manner consistent with the Securities and Exchange Commission’s Rule 2a-7 of
the Investment Company Act of 1940. Standard and Poors rates the MLGIP as AAAm. The fair value of the pool is the
same as the value of the pool shares. At June 30, 2018, the County had investments in MLGIP of $72,217,579, which are
recorded at cost, which approximates fair value.
As of June 30, 2018, the County’s investments (excluding investments held for retiree health benefits), for both custodial
and credit risk purposes, consisted solely of shares in the MLGIP. This investment is not deemed to have either risk and
is in conformity with the County’s policy relating to minimal credit risk of investments.
The majority of the Retiree Health Trust investments are invested in the Maryland Association of Counties Pooled OPEB
Trust (MACO Trust). The MACO Trust is administered by Davenport & Company LLC, and is a wholly-owned
instrumentality of its members. The nine members who are the sole contributors to the Trust consist of the following:
Allegany, St. Mary’s, Queen Anne’s, and Talbot Counties, City of Annapolis, College of Southern Maryland, Town of
Bel Air, Talbot County Board of Education, St. Mary’s County Metropolitan Commission, Harford Community College,
and Harford County Public Library.
The assets of the Trust are managed by a Board of Trustees and consist of U.S. Treasury obligations, U.S. government
agencies, corporate and foreign bonds, municipal obligations, taxable fixed income securities, mutual funds, global funds,
and international equity securities.
Cash and cash equivalents for the MACO Trust include an investment in a money market mutual fund. At June 30, 2018,
the weighted average maturity (WAM) for the Trust’s money market mutual fund investment was 34 days. At June 30,
2018, the short-term rating of the money market mutual fund was AAAm by Standard & Poor’s.
The main objectives of the Trust’s investment policy are the protection of investment principal and maximizing
investment income through diversification while assuring financial liquidity. The policy allows for investment in U.S. and
Non-U.S. equities, corporate, government, or government agency bonds, non U.S. bonds, Real Estate and Limited
Partnerships.
-62-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS (CONTINUED)
The Trust categorizes its fair value measurements with the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset and gives
the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements)
and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are
described below:
 Level 1 – Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets;
 Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets or identical assets
or liabilities in less active markets, such as dealer or broker markets; and
 Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant
value drivers are unobservable, such as pricing models, discounted cash flow models and similar techniques not
based on market, exchange, dealer or broker-traded transactions.
Transactions are recorded on the trade date. Realized gains and losses are determined using the identified cost method.
Any change in net unrealized gain or loss from the preceding period is reported in the statement of revenues, expenses
and changes in net position. Dividends are recorded on the ex-dividend date. Interest is recorded on the accrual basis.
Following is a description of the valuation methodologies used for assets measured at fair value.
Equity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Debt securities
classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to
value securities based on the securities' relationship to benchmark quoted prices.
The Trust has the following recurring fair value measurements as of June 30, 2018, of which Queen Anne’s County’s
portion was 13.5% of the total:
Level 1 Level 2 Level 3 June 30, 2018
Investments by fair value level:
Debt Securities
U.S. Treasury Obligations $ - $ 2,769,749 $ - $ 2 ,769,749
U.S. Governmental Agencies - 1,469,591 - 1 ,469,591
Corporate & Foreign bonds - 4,353,332 - 4 ,353,332
Municipal Obligations - 518,371 - 5 18,371
Equity and Mutual Fund Investments
Taxable Fixed Income Funds - 1,821,322 - 1 ,821,322
Mutual Funds 13,729,053 - - 1 3,729,053
Global Funds 1,936,289 - - 1 ,936,289
International 5,850,724 - - 5 ,850,724
Total $ 21,516,066 $ 10,932,365 $ - $ 3 2,448,431
Interest rate risk is the risk that changes in market interest rates that will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market
interest rates. The Trust’s investment policy states that the duration of the portfolio should be within 6 months of the
Barclays Capital Aggregate Bond Index. The Trusts’ weighted average years to maturity as of June 30, 2018 was 2.3
years.
-63-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS (CONTINUED)
Information about the sensitivity of the fair values of the Trust’s investments to market interest rate fluctuations is
provided by the following table that shows the distribution of the Trust’s investments by maturity as of June 30, 2018:
Investment Maturities (in Years)
Less than 1 1 - 5 6 - 10 More than 10 Total
Investments with maturities
U.S. Treasury Obligations $ - $ 1,454,308 $ 823,384 $ 4 92,057 $ 2,769,749
U.S. Governmental Agencies - 120,533 194,390 1 ,154,668 1,469,591
Corporate & Foreign bonds 280,987 2,557,167 492,844 1 ,022,334 4,353,332
Municipal Obligations - 383,470 134,901 - 518,371
Total $ 280,987 $ 4,515,478 $ 1,645,519 $ 2 ,669,059 $ 9,111,043
Credit Risk. The Trust is exposed to both market risk, the risk arising from changes in fair value, and credit risk, the risk
of failure by another party to perform according to the terms of a contract. The Trust bears the risk of loss only to the
extent of the fair value of its respective investments. At June 30, 2018 the ratings of the underlying investments of the
Trust’s investments were as follows:
Rating
Type Aaa Aa1/Aa2/Aa3 A1/A2/A3 Baa1/Baa2/Baa3 Ba1 Not Rated Total
U.S. Treasury Obligations $ 2,591,339 $ - $ - $ - $ - $ 178,410 $ 2,769,749
U.S. Governmental Agencies - - - - - 1,469,591 1,469,591
Corporate & Foreign bonds 241,640 1,059,610 1,637,890 7 90,692 67,527 555,973 4,353,332
Municipal Obligations 98,671 326,093 - - - 93,607 518,371
Total $ 2,931,650 $ 1,385,703 $ 1,637,890 $ 7 90,692 $ 67,527 $ 2,297,581 $ 9,111,043
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer)
to a transaction, the Trust will not be able to recover the value of its investment or collateral securities that are in the
possession of another party. The Trust’s investment policy does not contain legal or policy requirements that would limit
the exposure to custodial credit risk for deposits or investments.
The Trust has all of its assets on deposit with Wilmington Trust Company in connection with its investing and cash
management activities. In the event of a financial institution’s insolvency, recovery of Trust assets on deposit may be
limited to account insurance or other protection afforded such deposits.
The following summarizes custodial credit risk related to investments held by the custodian as of June 30, 2018, which
are uninsured and unregistered as well as the interest rate range:
Fair Value
June 30, 2018 Interest Rate Range
U.S. Treasury Obligations $ 2,769,749 .375-4.5%
U.S. Governmental Agencies 1,469,591 1.3-3.6%
Corporate & Foreign bonds 4,353,332 1.57-8.7%
Municipal Obligations 518,371 2.68-5.57%
Taxable Fixed Income Funds 1,821,322 N/A
Mutual Funds 13,729,053 N/A
Global Funds 1,936,289 N/A
International 5,850,724 N/A
Total $ 32,448,431
-64-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS (CONTINUED)
Concentration of credit risk. The following general asset allocation guidelines have been established through the Trust’s
investment policy.
Asset Class Minimum Maximum Target
Equities 50% 70% 65%
Fixed Income 30% 50% 35%
Cash and Equivalents 0% 10% 0%
The Trust held the following investments as of June 30, 2018 that exceeded 5% of the total investment balance as of June
30, 2018:
Name Amount
DFA US Small-Cap Value Fund $ 2,523,065
Lazard International Strategic Equity Funds 2,942,998
Transamerica TS&W International Equity Fund 2,907,726
Vanguard 500 Index Fund 7,155,233
Vanguard Mid-Cap Index Fund -Admiral Shares 2,327,507
New World Fund 1,936,289
Foreign currency risk is the risk that changes in the exchange rate of investments will adversely affect the fair value of an
investment. The Trust was not exposed to Foreign Currency risk as of June 30, 2018 as the Trust did not have any
investments denominated in foreign currencies.
For the year ended June 30, 2018, the annual money-weighted rate of return on investments, net of expense, was 6.6%.
The money-weighted rate of return expresses investment performance, net of investment expenses, adjusted for the
changing amounts actually invested.
Capital Accounts
The Trust accounts for contributions, allocations and redemptions on a per member capital account basis. The revenues,
consulting and management fees, and administrative service fee are allocated pro rata to the capital accounts of each
member based on committed capital. The fair value of Member capital accounts are determined monthly.
Income Taxes
The Trust complies with the requirements of Section 115 of the Internal Revenue Code and is exempt from income taxes.
COMPONENT UNITS (BOARD OF EDUCATION AND LIBRARY)
Component Unit - Board of Education - At year-end, the carrying amount of deposits was $13,775,576, including
$300,000 in certificates of deposit and excluding the carrying amount of fiduciary funds. At June 30, 2018, the Board had
deposits of approximately $15.1 million with local banks. Of the total deposits, approximately $14.6 million not covered
by the FDIC was collateralized by securities held by the pledging financial institution’s trust department or agent, but not
in the Board’s name.
Component Unit – Library - At year-end, the carrying amount of all bank deposits, including a $10,500 certificate of
deposit, was $602,372, while collected bank balances were $643,570. Of the bank balances, $250,000 was secured by the
FDIC and $393,570 was secured by collateral held by the pledging bank’s trust department but not in the Library’s name.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
B. INVESTMENT INCOME
PRIMARY GOVERNMENT
Total investment income earned in all governmental and business-type funds was credited for use as follows:
Investment
Governmental Funds Income
Major Governmental Funds
General Fund $ 639,388
General Capital Projects 172,419
Roads Capital Projects 28,882
Non-Major Governmental Funds 138,266
Total Investment Income $ 978,955
Business-Type Funds
Major Enterprise Funds
Sanitary District $ 439,311
Bay Bridge Airport 405
Total Investment Income $ 439,716
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 4 - ACCOUNTS RECEIVABLE
Receivables as of June 30, 2018 for the governmental and business-type activities are as follows:
Total
General Roads Non-Major Total Total Governmental
General Capital Capital Governmental Governmental Enterprise and Enterprise
Accounts Receivable Fund Projects Projects Funds Funds Funds Funds
Receivables
Taxes - Real Property $ 210,788 $ - $ - $ - $ 210,788 $ - $ 2 10,788
Taxes - Other 341,079 - - - 341,079 - 3 41,079
Subtotal Taxes 551,867 - - - 551,867 - 5 51,867
Other Accounts Receivable:
Queen Anne's County Public Housing Authority - 9 31,074 - - 931,074 - 9 31,074
Sanitary District - User and Septage Fees - - - - - 531,733 5 31,733
Board of Education 44,752 - - - 44,752 - 4 4,752
Retirees Insurance 36,941 - - - 36,941 - 3 6,941
Governmental Funds - User Fees 5,103 - 2 ,466 - 7,569 - 7 ,569
Department of Emergency Service Receivables 24,569 - - - 24,569 - 2 4,569
Public Landings Receivables - - - - - 55,747 5 5,747
Airport - Fuel Sales and User and Rental Fees - - - - - 28,575 2 8,575
Miscellaneous Receivables 72,491 3 0,000 - 30,147 132,638 - 1 32,638
Subtotal Other Accounts Receivable 183,856 9 61,074 2 ,466 30,147 1,177,543 616,055 1 ,793,598
Loans Receivable - - - 6,369,258 6,369,258 - 6 ,369,258
Subtotal Other Accounts and Loans Receivable 183,856 9 61,074 2 ,466 6,399,405 7,546,801 616,055 8 ,162,856
Special Assessments - - 1 15,922 892,420 1,008,342 - 1 ,008,342
Intergovernmental
Income Taxes Held by State 11,765,523 - - - 11,765,523 - 1 1,765,523
Grants Receivable 406,475 2 8,000 7 ,274 931,119 1,372,868 73,926 1 ,446,794
Recordation Tax 589,227 - - - 589,227 - 5 89,227
State-Shared Highway User Tax 118,988 - - - 118,988 - 1 18,988
Bonds Receivable 426,585 - - - 426,585 - 4 26,585
Subtotal Intergovernmental 13,306,798 2 8,000 7 ,274 931,119 14,273,191 73,926 1 4,347,117
Restricted Receivables
Accounts Receivable - - - - - 5,603 5 ,603
Special Assessments - - - - - 968,558 9 68,558
Subtotal Restricted Receivables - - - - - 974,161 9 74,161
Total Receivables $ 14,042,521 $ 9 89,074 $ 1 25,662 $ 8,222,944 $ 23,380,201 $ 1,664,142 $ 2 5,044,343
The County does not have any allowance for doubtful accounts related to the above receivables.
In Fiscal Year 2014, the County issued bonds on behalf of three mid-shore counties (Dorchester, Caroline, and Talbot) in
order to provide funding for the new Center for Allied Health and Athletics at Chesapeake College. Therefore, in addition
to the Governmental and Enterprise Fund receivables listed above, the County also has a $4.1 million receivable on its
government-wide Statement of Net Position, which represents the collective obligation of the three aforementioned counties
for funding the facility at Chesapeake College.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 4 - ACCOUNTS RECEIVABLE (CONTINUED)
The County expects to receive all receivables listed in the table within one year, excluding the following items.
Intergovernmental receivables include bonds receivable from four other counties. In years 2000 and 2003, Queen Anne’s
County sold $2,815,000 and $710,000, respectively, of its general obligation bonds for the purpose of providing the local
share of capital projects at Chesapeake College. Five counties, including Queen Anne’s County, provide local support for
the College. The other four counties supporting Chesapeake College reimburse Queen Anne’s County for their portion of
the debt service. Bonds are amortized over the 20-year life of each of the original Queen Anne's County Bonds. The
current carrying value for the bonds receivable from the other four counties are $257,100 and $169,485, respectively, for a
total of $426,585. The College bills and collects from the original five counties an amount sufficient to cover this debt
service and reimburses this amount to Queen Anne’s County on a semi-annual basis. In addition to these two receivables
related to Chesapeake College, there is also a receivable of $4.1 million included in the Government-Wide Statement of Net
Position. Details are included on the previous page.
Loans receivable in the amount of $6,369,258 relate to the Housing and Community Services, Impact Fees, and Revolving
Loan Special Revenue Funds. Loans receivable in the amount of $5,307,490 for Housing and Community Services will be
repaid when the homes are sold, in virtually all cases. These loans support housing rehabilitation and home-ownership.
When the loans are repaid to the County, the funds are then loaned out again to serve the same purpose. Loans for the
Revolving Loan Fund in the amount of $82,719 are also repaid over a number of years.
The remaining loan receivable balance of $979,049 relates to school, fire, and parks and recreation impact fees. In July
2007, the County began accepting promissory notes for impact fees, in certain situations, with the understanding that when
certificate of occupancy was obtained, these notes would be paid in full. To ensure repayment, the notes attach to the
property incurring the impact fee; therefore, payment will be required automatically prior to legal transfer of title.
Income taxes held by the State in the amount of $11,765,523 have been estimated by the State as income tax due for “tax
years” 2014 and prior. It may take five years or longer for the State to receive all amounts relating to these “tax years” and
remit those monies to the County. However, the State indicates that this is a reasonable estimate of their liability to the
County and the County reports this amount in accordance with GAAP.
Special Assessments in the amount of $1,008,342 represent receivables for governmental activities. Part of this amount
consists of $115,922 for assessments levied on homeowners to reimburse the County for construction or upgrade of private
roads prior to their acceptance into the County Roads System. The other part of this amount consists of $892,420 for
assessments levied on homeowners relating to dredging costs. Payment of these assessments is expected over a number of
years.
Restricted Special Assessments in the amount of $968,558 represent restricted receivables for the Sanitary District. These
receivables relate to assessments levied on homeowners for the construction of sewer and water lines, as well as for hook up
costs. Only the current portion due is billed and the remaining balances are repaid over a number of years, as determined
by the original agreement. As the funds are paid back, the County uses the money to repay debt.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 5 – UNEARNED REVENUE
Governmental funds report unearned revenue in connection with resources that have been received, but unearned. At the
end of the current fiscal year, the components of unearned revenue were reported as follows:
Unearned
Governmental Funds Revenue
General Fund
Property Tax Deferrals $ 23,415
Inspection Fees Collected in Advance 524,608
Subtotal 548,023
General Capital Projects Fund
Grant Drawdowns in Excess of Expenditures 48,655
Non-Major Governmental Funds
Grant Drawdowns in Excess of Expenditures 147,338
Total Unearned Revenue $ 744,016
Business-Type Funds
Major Enterprise Funds
Sanitary District
Inspection Fees $ 192,565
Miscellaneous 3,000
Subtotal 195,565
Non-Major Enterprise Funds 2,270
Total Unearned Revenue $ 197,835
-69-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 6 – CAPITAL ASSETS
PRIMARY GOVERNMENT
Changes in the County’s capital assets for governmental activities for the year ended June 30, 2018 are summarized as
follows, with depreciation shown separately. Assets resulting from completed capital projects are shown in the Transfers
column. Asset retirements are shown in the Decreases column.
Balance Balance
Governmental Activities June 30, 2017 Increases Transfers Decreases June 30, 2018
Capital Assets, not being depreciated:
Land $ 3 9,049,429 $ - $ - $ - $ 39,049,429
Intangible Rights - Easements 8 21,819 - - - 821,819
Land Improvements 3 ,714,283 - - - 3,714,283
Construction in Progress 1 0,896,408 9 ,979,602 ( 170,406) ( 323,059) 20,382,545
Land - Inexhaustible Infrastructure Improvements 4 3,890,863 - - - 43,890,863
Total Capital Assets, not being depreciated 9 8,372,802 9 ,979,602 ( 170,406) ( 323,059) 107,858,939
Capital Assets, being depreciated:
Buildings and Building Improvements 4 7,283,043 6 86,116 170,406 - 48,139,565
Improvements other than Buildings 1 0,556,328 2 76,589 - - 10,832,917
Vehicles 1 2,560,334 1 ,039,939 - ( 682,151) 12,918,122
Equipment 1 2,848,103 3 38,205 - ( 322,049) 12,864,259
Furniture and Fixtures 1 1,450,721 2 24,415 - ( 165,145) 11,509,991
Infrastructure Improvements - Depreciable 1 9,236,142 - - - 19,236,142
Total Capital Assets, being depreciated 1 13,934,671 2 ,565,264 170,406 ( 1,169,345) 115,500,996
Less Accumulated Depreciation for:
Buildings and Building Improvements 1 4,603,279 1 ,063,050 - - 15,666,329
Improvements other than Buildings 2 ,845,269 4 12,761 - - 3,258,030
Vehicles 7 ,172,323 8 86,699 - ( 624,537) 7,434,485
Equipment 6 ,856,818 7 68,665 - ( 294,354) 7,331,129
Furniture and Fixtures 2 ,037,613 1 ,103,740 - ( 162,295) 2,979,058
Infrastructure Improvements - Depreciable 8 ,487,826 3 87,400 - - 8,875,226
Total Accumulated Depreciation 4 2,003,128 4 ,622,315 - ( 1,081,186) 45,544,257
Total Capital Assets, being depreciated, net 7 1,931,543 (2,057,051) 170,406 ( 88,159) 69,956,739
Governmental activities Capital Assets, net $ 1 70,304,345 $ 7 ,922,551 $ - $ ( 411,218) $ 177,815,678
-70-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 6 – CAPITAL ASSETS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Changes in the County’s capital assets for business-type activities for the year ended June 30, 2018 are summarized as
follows, with depreciation shown separately. Assets resulting from completed capital projects are shown in the Transfers
column. Asset retirements are shown in the Decreases column.
Balance Balance
Business-Type Activities June 30, 2017 Increases Transfers Decreases June 30, 2018
Capital Assets, not being depreciated:
Land $ 13,142,176 $ - $ - $ - $ 13,142,176
Land Improvements 9,500 - - - 9,500
Intangible Rights 6,140 - - - 6,140
Construction in Progress 11,987,450 7,001,266 - (376,348) 18,612,368
Land - Inexhaustible Infrastructure Improvements 2,481,094 - - - 2,481,094
Total Capital Assets, not being depreciated 27,626,360 7,001,266 - (376,348) 34,251,278
Capital Assets, being depreciated:
Buildings and Improvements to Buildings 16,101,695 64,134 - - 16,165,829
Improvements other than Buildings 15,037,220 73,713 - - 15,110,933
Vehicles 1,744,372 - - - 1,744,372
Equipment 23,103,418 532,061 - - 23,635,479
Furniture and Fixtures 30,809 - - - 30,809
Infrastructure Improvements - Depreciable 82,047,628 4,198,378 - - 86,246,006
Total Capital Assets, being depreciated 138,065,142 4,868,286 - - 142,933,428
Less Accumulated Depreciation for:
Buildings and Improvements to Buildings 8,946,825 643,605 - - 9,590,430
Improvements other than Buildings 5,142,501 528,335 - - 5,670,836
Vehicles 1,137,997 99,985 - - 1,237,982
Equipment 13,275,500 1,122,985 - - 14,398,485
Furniture and Fixtures 16,092 3,460 - - 19,552
Infrastructure Improvements - Depreciable 31,530,283 1,915,914 - - 33,446,197
Total Accumulated Depreciation 60,049,198 4,314,284 - - 64,363,482
Total Capital Assets, being depreciated, net 78,015,944 554,002 - - 78,569,946
Business-Type activities Capital Assets, net $ 105,642,304 $ 7,555,268 $ - $ (376,348) $ 112,821,224
-71-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 6 – CAPITAL ASSETS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities Depreciation
General Government $ 248,629
Public Safety 1,947,291
Public Works 2,008,724
Health 21,122
Social Services 307,303
Library 20,390
Conservation of Natural Resources 30,725
Economic/Community Development 38,131
$ 4,622,315
Business-Type Activities
Major Enterprise Funds:
Sanitary District $ 3,712,007
Bay Bridge Airport 436,859
Non-Major Enterprise Funds 165,418
$ 4,314,284
-72-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS
Board of Education: Capital asset activity for the year ended June 30, 2018 is as follows:
Balance Balance
Board of Education June 30, 2017 Increases Decreases June 30, 2018
Capital Assets, not being depreciated:
Land $ 6,363,040 $ - $ - $ 6,363,040
Construction in Progress 553,519 3,777,253 - 4,330,772
Total Capital Assets, not being depreciated 6,916,559 3,777,253 - 10,693,812
Capital Assets, being depreciated:
Land Improvements 5,402,721 - (3,800) 5,398,921
Buildings 207,120,818 25,087 (2,920) 207,142,985
Furniture and Equipment 15,775,855 525,332 (181,752) 16,119,435
Total Capital Assets, being depreciated 228,299,394 550,419 (188,472) 228,661,341
Less Accumulated Depreciation for:
Land Improvements 4,330,779 151,118 (3,800) 4,478,097
Buildings 55,419,155 4,304,934 (1,254) 59,722,835
Furniture and Equipment 9,151,527 1,289,685 (161,987) 10,279,225
Total Accumulated Depreciation 68,901,461 5,745,737 (167,041) 74,480,157
Total Capital Assets, being depreciated, net 159,397,933 ( 5,195,318) (21,431) 154,181,184
Capital Assets, net $ 166,314,492 $ ( 1,418,065) $ (21,431) $ 164,874,996
-73-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS (CONTINUED)
Queen Anne’s County Free Library: Capital asset activity for the year ended June 30, 2018 is as follows:
Balance Balance
Library June 30, 2017 Increases Decreases June 30, 2018
Capital Assets, not being depreciated:
Artwork $ 2 9,850 $ - $ - $ 29,850
Capital Assets, being depreciated:
Books and Media 2,010,333 192,027 (321,432) 1,880,928
Building Improvements 4 02,207 - - 402,207
Equipment 1 49,725 3,127 - 152,852
Total Capital Assets, being depreciated 2,562,265 195,154 (321,432) 2,435,987
Less Accumulated Depreciation 1,223,561 156,448 (285,435) 1,094,574
Total Capital Assets, being depreciated, net 1,338,704 3 8,706 ( 35,997) 1,341,413
Capital Assets, net $ 1,368,554 $ 38,706 $ (35,997) $ 1 ,371,263
-74-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 7 - INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables are usually used by the County to cover temporary cash deficits in individual funds
until grant or similar resources are received. Occasionally, these receivables and payables are used in lieu of short-term
external borrowing, such as for capital lease agreements.
The interfund and intra-entity receivables and payables consist of the following at June 30, 2018:
Due from Fund
Non-Major Bay Bridge Non-Major
Governmental Airport Enterprise Total Due
Due to Fund
General Fund $ 40,116 $ 9 5,878 $ 6 48,061 $ 784,055
General Capital Projects 41,861 1 ,209,457 - 1,251,318
Total Due to Other Funds $ 81,977 $ 1 ,305,335 $ 6 48,061 $ 2,035,373
Interfund receivables and payables are reported on the Statement of Net Position as Internal Balances, net of transactions
between the same types of funds.
-75-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 8 - INTERFUND TRANSFERS
Interfund transfers represent a transfer of resources from one fund to another without expectation of repayment. Usually,
these transfers are undertaken to enable the receiving entity to provide services that the government has determined to be
in the best interest of the County. The following interfund transfers were made during the fiscal year ended June 30,
2018:
Transfers in Fund
Total General Roads Non-Major Major Non-Major Total
Transfers Out Capital Projects Capital Governmental Enterprise Enterprise Transfers In
Transfers Out Fund
General Fund $ 7,113,354 $ 4,021,165 $ 3 00,000 $ 2,606,624 $ 73,284 $ 112,281 $ 7,113,354
General Capital Projects 67,461 - 6 0,000 - - 7,461 67,461
Total Major Governmental Funds 7,180,815 4,021,165 3 60,000 2,606,624 73,284 119,742 7,180,815
Non-Major Governmental 1,222,412 1,222,412 - - - - 1,222,412
Sanitary District - Sewer 5,000 5,000 - - - - 5,000
Sanitary District - Water 5,000 5,000 - - - - 5,000
Sanitary District - Restricted 1,227,444 - - - 1,227,444 - 1,227,444
Sanitary District - Debt Service 1,121,582 - - - 1,121,582 - 1,121,582
Total Major Enterprise Funds 2,359,026 10,000 - - 2,349,026 - 2,359,026
Total Transfers Out $ 10,762,253 $ 5,253,577 $ 3 60,000 $ 2,606,624 $ 2,422,310 $ 119,742 $ 10,762,253
-76-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 9 - NONCURRENT LIABILITIES
A. CHANGES IN NONCURRENT LIABILITIES
During the year ended June 30, 2018, the following changes occurred in the noncurrent liabilities of the primary
government’s governmental activities:
PRIMARY GOVERNMENT Retirements Due in
Balance Additions and Balance Due Within More than
Governmental Activities 6/30/2017 * of debt Repayments June 30, 2018 One Year One Year
General Bonds Payable $ 112,947,033 $ 1 6,000,000 $ 7,071,952 $ 121,875,081 $ 7,751,673 $ 114,123,408
General Bonds Payable - Related to PHA 1,008,916 - 77,842 931,074 80,717 850,357
General Bonds Payable - Related to Ches College 4,290,844 - 181,152 4,109,692 188,656 3,921,036
Notes Payable 1,698,425 - 280,964 1,417,461 312,388 1,105,073
Bond Premiums 5,272,364 9 08,973 529,880 5,651,457 573,178 5,078,279
Subtotal Governmental Activities Debt 125,217,582 1 6,908,973 8,141,790 133,984,765 8,906,612 125,078,153
Other Post-Employment Benefit Obligation * 39,947,286 2 ,762,053 1,498,005 41,211,334 - 41,211,334
Net Pension Liability 27,446,255 - 3,083,644 24,362,611 - 24,362,611
Compensated Absences 2,553,495 1 ,563,323 1,555,731 2,561,087 1,601,944 959,143
Total Governmental Activities Debt $ 195,164,618 $ 2 1,234,349 14,279,170 $ 202,119,797 $ 10,508,556 $ 191,611,241
Less College Reimbursements ( 203,379)
Total Governmental Retirements and Repayments $ 14,075,791
*Restated for prior period adjustment (see Note 19).
The reconciliation from retirements and repayments in the above table to the total principal payments on the Statement of
Revenues, Expenditures, and Changes in Fund Balance is as follows:
Retirements and Repayments
General Bonds Payable $ 7,071,952
Notes Payable 280,964
LESS: College Reimbursements ( 203,379)
Total Principal Payments $ 7,149,537
The County added amounts to several bond offerings on behalf of Chesapeake College, which cannot borrow money on
its own. The College reimbursed the County $203,379 for this year’s principal and interest payments.
-77-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2018, the following changes occurred in the noncurrent liabilities of the primary
government’s business-type activities:
PRIMARY GOVERNMENT Retirements Due in
Balance Additions and Balance Due Within More than
Business-Type Activities 6/30/2017 * of debt Repayments June 30, 2018 One Year One Year
Golf Course $ 314,164 $ - $ 71,176 $ 242,988 $ 75,124 $ 167,864
Bay Bridge Airport 1,936,975 - 102,500 1,834,475 106,552 1,727,923
Public Landings and Marinas 832,065 - 50,377 781,688 52,276 729,412
Sanitary District 16,296,744 1 0,103,735 915,658 25,484,821 924,815 24,560,006
Subtotal Debt 19,379,948 1 0,103,735 1,139,711 28,343,972 1,158,767 27,185,205
Bond Premiums
Golf Course 32,126 - 8,655 23,471 8,655 14,816
Bay Bridge Airport 96,231 - 8,076 88,155 8,076 80,079
Public Landings and Marinas 5,918 - 500 5,418 501 4,917
Subtotal Bond Premiums 134,275 - 17,231 117,044 17,232 99,812
Subtotal Business-Type Activities Debt 19,514,223 1 0,103,735 1,156,942 28,461,016 1,175,999 27,285,017
Other Post-Employment Benefit Obligation * 7,506,949 1 81,201 - 7,688,150 - 7,688,150
Net Pension Liability 2,553,815 - 254,660 2,299,155 - 2,299,155
Compensated Absences 368,889 2 38,965 224,747 383,107 239,631 143,476
Total Business-Type Activities Debt $ 29,943,876 $ 1 0,523,901 $ 1,636,349 $ 38,831,428 $ 1,415,630 $ 37,415,798
*Restated for prior period adjustment (see Note 19).
-78-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2018, the following changes occurred in the noncurrent liabilities of the primary
government’s Component Units:
COMPONENT UNITS Retirements Due in
Balance Additions and Balance Due Within More than
Board of Education and Free Library 6/30/2017 * of new debt Repayments June 30, 2018 One Year One Year
Queen Anne's County
Board of Education
Retirement Incentives $ 3,215 $ - $ 1,895 $ 1,320 $ 1 ,320 $ -
Compensated Absences 863,007 - 44,080 818,927 2 03,698 615,229
Capital Leases 2,428,900 - 345,844 2,083,056 1 54,906 1,928,150
Other Post-Employment Benefit Obligation * 185,856,442 - 14,026,684 171,829,758 - 171,829,758
Net Pension Liability 5,140,060 - 740,739 4,399,321 - 4,399,321
Subtotal 194,291,624 - 15,159,242 179,132,382 3 59,924 178,772,458
Free Library
Other Post-Employment Benefit Obligation * 462,610 860 - 463,470 - 463,470
Total Noncurrent Liabilites: Component Units $ 194,754,234 $ 860 $ 15,159,242 $ 179,595,852 $ 3 59,924 $ 179,235,928
*Restated for prior period adjustment.
-79-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
NET PENSION LIABILITY, AND COMPENSATED ABSENCES
PRIMARY GOVERNMENT
All general obligation bonds are valid and legally binding general obligations of Queen Anne’s County and constitutes an
irrevocable pledge of its full faith and credit and unlimited taxing power. Governmental bonds are payable from ad
valorem taxes, unlimited as to rate or amount on all real, tangible, personal, and certain intangible property subject to
taxation at full rate for local purposes in the County.
Business-type bonds, while representing general obligations of the County government, are to be paid from income
earned by the related enterprise fund. Enterprise funds that have such debt are: Sewer Operations, Bay Bridge Airport,
Blue Heron Golf Course, and Public Landings and Marinas.
During fiscal year 2018, the County implemented the provisions of Governmental Accounting Standards Board (GASB)
Statement 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions. For
governmental funds, the other post-employment benefit obligations are reported in the government-wide statements in the
function in which that employee usually charges their productive time. For enterprise funds, these obligations are
reported in the enterprise fund in which that employee charges the majority of their productive time. Other Post-
Employment Benefit Obligation costs in governmental funds are charged to the General Fund. Additional information
can be found in Note 14, Other Post-Employment Benefits.
During fiscal year 2015, the County implemented the provisions of Governmental Accounting Standards Board (GASB)
Statement 68, Accounting and Financial Reporting for Pensions. For governmental funds, the net pension liability is
reported in the government-wide statements in the function in which that employee usually charges their productive time.
For enterprise funds, these obligations are reported in the enterprise fund in which the employee charges the majority of
their productive time. Net Pension Liability costs in governmental funds are charged to the Governmental Fund in which
the employee charges their time. Additional information can be found in Note 12, Retirement Plans.
Compensated absences that mature during the fiscal year, in that they are paid when the employee takes vacation leave or
upon the employee’s termination, are typically liquidated from the governmental or enterprise fund in which that
employee charges the majority of their productive time. They are paid as regular wages. Compensated absences that do
not mature during the fiscal year are accrued at year-end as an adjustment to liability for compensated absences. For
governmental funds, these adjustments are reported in the government-wide statements in the function in which that
employee usually charges their productive time. For enterprise funds, these adjustments are reported in the enterprise
fund in which that employee charges the majority of their productive time. In the case of grant-funded activities that
disallow compensated absences as an eligible cost, they are paid as administrative wages in the same Fund. Compensated
absences in governmental funds are primarily charged to the General Fund or Special Revenue Funds; they are usually
not charged to Capital Projects Funds.
-80-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
NET PENSION LIABILITY, AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
As of June 30, 2018, general obligation bonds and notes payable for governmental activities are comprised of the
following, along with other post-employment benefits, net pension liability, and accrued compensated absences:
Year Amount Outstanding Due in
Paying Interest Series of Original June 30, Due Within More than
Governmental Activities Fund Rate Matures Issue 2018 One Year One Year
General Obligation Bonds Payable
2009 Public Facilities General 1.400%-5.625% 2030 $ 28,499,154 $ 19,151,553 $ 1,287,029 $ 17,864,524
2011 Public Facilities General 2.00%-4.25% 2031 21,532,570 15,837,979 938,042 14,899,937
2012 Refunding Bonds General 2.00%-4.00% 2023 8,010,000 4,201,445 779,432 3,422,013
2014 Public Facilities General 2.00%-4.00% 2034 17,590,000 14,204,122 652,041 13,552,081
2015 Public Facilities General 3.00%-5.00% 2036 11,622,756 10,718,571 415,156 10,303,415
2015 Refunding Bonds General 2.00%-5.00% 2027 13,521,625 12,281,820 1,118,730 11,163,090
2016 Public Facilities General 2.00%-4.00% 2036 13,934,364 13,465,923 471,531 12,994,392
2016 Refunding Bonds General 2.00%-5.00% 2019 8,042,773 3,413,668 1,699,712 1,713,956
2017 Public Facilities General 3.00%-5.00% 2037 12,600,000 12,600,000 390,000 12,210,000
2018 Public Facilities General 3.00%-5.00% 2038 16,000,000 16,000,000 - 16,000,000
2009 Public Facilities Due from PHA 1.400%-5.625% 2030 872,644 599,423 40,283 559,140
2012 Refunding Bonds (2003 Bonds) Due from PHA 3.50%-4.50% 2023 335,000 113,555 20,568 92,987
2015 Refunding Facilities (2006 Bonds) Due from PHA 2.00%-3.00% 2027 240,112 218,096 19,866 198,230
2014 Public Facilities Due from other Counties 2.00%-4.00% 2034 4,800,000 4,109,692 188,656 3,921,036
Subtotal Bonds Payable 126,915,847 8,021,046 118,894,801
Notes Payable
State of Maryland - Price Ck. Spec. Rev. 0.00% 2021 625,000 72,000 24,000 48,000
State of Maryland - Grove Ck. Spec. Rev. 0.00% 2034 510,617 326,792 20,425 306,367
State of Maryland - Narrows Pointe Spec. Rev. 0.00% 2030 15,542 525,318 25,530 499,788
Suntrust Financing General 2.51% 2020 1,215,590 493,351 242,433 250,918
Subtotal Notes Payable 1 ,417,461 3 12,388 1 ,105,073
Subtotal Bonds and Notes Payable 128,333,308 8,333,434 119,999,874
Bond Premiums 5,651,457 573,178 5,078,279
Subtotal Governmental Activities Debt 133,984,765 8,906,612 125,078,153
Other Post-Employment Benefit Obligation 41,211,334 - 41,211,334
Net Pension Liability 24,362,611 - 24,362,611
Compensated Absences 2,561,087 1,601,944 959,143
Total Governmental Activities $ 202,119,797 $ 10,508,556 $ 191,611,241
-81-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
NET PENSION LIABILITY, AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize general obligation bonds and notes payable outstanding as of June 30, 2018 for
governmental activities are as follows:
Governmental Activities
Year Ending Governmental Bonds Payable Governmental Notes Payable
June 30, Principal Interest Total Principal Interest Total
2019 $ 8,021,046 $ 4 ,793,273 $ 12,814,319 $ 312,388 $ 1 2,350 $ 324,738
2020 8,804,209 4 ,595,757 13,399,966 323,109 6 ,252 329,361
2021 7,394,502 4 ,248,826 11,643,328 72,191 - 72,191
2022 7,722,864 3 ,927,275 11,650,139 48,191 - 48,191
2023 8,086,048 3 ,588,634 11,674,682 48,191 - 48,191
2024-2028 38,814,297 1 3,011,703 51,826,000 240,955 - 240,955
2029-2033 30,036,653 5 ,633,013 35,669,666 240,955 - 240,955
2034-2038 16,876,226 1 ,426,158 18,302,384 131,481 - 131,481
2039 1,160,002 1 9,575 1,179,577 - - -
$ 126,915,847 $ 4 1,244,214 $ 168,160,061 $ 1,417,461 $ 1 8,602 $ 1,436,063
A portion of the County’s 2009 Bond offering was issued using Build America Bonds. As an incentive to use these
bonds, the Federal government offered an interest reimbursement grant, which offsets the County’s debt service for
interest expense. As a result, the County received interest reimbursements of $344,179 during fiscal year 2018, which
are reported separately as a specific intergovernmental grant. The net effect of this reimbursement is shown below.
Net Effect of Federal Build America Bonds Interest Reimbursement on Interest Expense
Interest Expense Interest Net Interest
on 2009 Bonds Reimbursement Expense
Governmental Activities $ 1,013,240 $ ( 330,644) $ 6 82,596
Business-Type Activities
Bay Bridge Airport 6,559 ( 2,140) 4 ,419
Public Landings and Marinas 34,915 ( 11,395) 2 3,520
Total Business-Type Activities 41,474 ( 13,535) 2 7,939
Total $ 1,054,714 $ ( 344,179) $ 7 10,535
-82-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
NET PENSION LIABILITY, AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
General obligation bonds and notes payable outstanding as of June 30, 2018 for business-type activities are comprised of
the following, as well as other post-employment benefits, net pension liability, and accrued compensated absences:
Year Amount Outstanding Due in
Interest Series of Original June 30, Due Within More than
Business -Type Activities Rate Matures Issue 2018 One Year One Year
Golf Course
2016 Public Facilities Bonds 2.00%-4.00% 2036 $ 85,636 $ 99,077 $ 3 ,469 $ 95,608
2016 Refunding Bonds 2.00%-5.00% 2019 339,062 143,911 7 1,655 72,256
Bond Premiums 23,471 8 ,655 14,816
Subtotal Golf Course 266,459 8 3,779 182,680
Bay Bridge Airport
2009 Public Facilities Bonds 1.400%-5.625% 2030 180,501 123,987 8 ,332 115,655
2011 Public Facilities Bonds 2.00%-4.25% 2031 21,968 17,811 1 ,082 16,729
2014 Public Facilities Bonds 2.00%-4.00% 2034 964,940 856,186 3 9,303 816,883
2015 Public Facilities Bonds 3.00%-5.00% 2036 577,244 641,428 2 4,844 616,584
2015 Refunding Bonds 2.00%-5.00% 2027 173,556 157,642 1 4,359 143,283
2016 Refunding Bonds 2.00%-4.00% 2036 88,165 37,421 1 8,632 18,789
Bond Premiums 88,155 8 ,076 80,079
Subtotal Airport 1,922,630 1 14,628 1,808,002
Public Landings and Marinas
2009 Public Facilities Bonds 1.400%-5.625% 2030 947,976 660,037 4 4,356 615,681
2011 Public Facilities Bonds 2.00%-4.25% 2031 133,908 99,209 5 ,876 93,333
2015 Refunding Bonds 2.00%-5.00% 2027 24,707 22,442 2 ,044 20,398
Bond Premiums 5,418 5 01 4,917
Subtotal Public Landings and Marinas 787,106 5 2,777 734,329
Sanitary District
Maryland Water Quality-2005 Enhancement 1.00% 2027 18,252,291 8,649,389 9 24,815 7,724,574
Maryland Water Quality-2017 Loan 0.80% 2051 6,731,697 16,835,432 - 16,835,432
Subtotal Sanitary District 25,484,821 9 24,815 24,560,006
Total Business-Type Activities Debt 28,461,016 1 ,175,999 27,285,017
Other Post-Employment Benefit Obligation 7,688,150 - 7,688,150
Net Pension Liability 2,299,155 - 2,299,155
Compensated Absences 383,107 2 39,631 143,476
Total Business-Type Activities $ 38,831,428 $ 1 ,415,630 $ 37,415,798
-83-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
NET PENSION LIABILITY, AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize business-type bonds and notes outstanding at June 30, 2018, are as follows:
Business-Type Activities
Year Ending Business-Type Bonds Payable Business-Type Notes Payable
June 30, Principal Interest Total Principal Interest Total
2019 $ 233,952 $ 1 15,668 $ 349,620 $ 924,815 $ 3 31,156 $ 1,255,971
2020 240,790 1 06,049 346,839 934,063 3 81,684 1,315,747
2021 155,498 9 7,205 252,703 943,404 4 03,201 1,346,605
2022 162,136 8 9,957 252,093 1,898,092 4 36,745 2,334,837
2023 168,953 8 2,357 251,310 1,915,182 3 98,950 2,314,132
2024-2028 925,704 2 95,691 1,221,395 8,811,549 1 ,684,641 10,496,190
2029-2033 733,342 1 10,464 843,806 5,074,980 1 ,197,135 6,272,115
2034-2038 238,776 1 1,776 250,552 4,982,736 9 96,262 5,978,998
$ 2,859,151 $ 9 09,167 $ 3,768,318 $ 25,484,821 $ 5 ,829,774 $ 31,314,595
C. ISSUANCE OF NEW DEBT
PRIMARY GOVERNMENT
On March 27, 2018, Queen Anne's County issued Public Facilities Bonds of 2018 for $16,000,000. These General
Obligation Bonds carry interest rates of 3.0 to 5.0 percent and mature serially through 2038. The primary use of the
bond proceeds is to provide funding for the new County courthouse, Roads capital projects, and the renovation of
Grasonville Elementary School, with minor amounts earmarked for construction of general government capital projects.
Moody’s Investor Service has assigned the rating of Aa1, Fitch Ratings has assigned a rating of AAA and Standard &
Poor’s also assigned a AAA rating to the Queen Anne’s County 2018 Bonds.
In fiscal year 2017, the County began borrowing funds through the Maryland Water Quality Financing Administration
for the Southern Kent Island (SKI) Sanitary Project. The total loan amount will be approximately $32 million and funds
will be disbursed as the project costs are incurred. Principal payments will begin in 2022 and the loan will be repaid over
30 years at an interest rate of 0.80%. In fiscal year 2018, the County received $10,103,735 as part of this loan. The total
received as of June 30, 2018 was $16,835,432. At completion of the SKI project, it is anticipated that $1,267,000 of the
loan with the Maryland Water Quality Financing Administration will be forgiven and the County will not need to repay
those funds. At that time, the County will clear the debt for the final amount forgiven.
-84-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
D. MUNICIPAL LEASE
PRIMARY GOVERNMENT
In January 2016, the County signed a note with SunTrust Equipment Financing & Leasing Corporation for the purchase
of replacement vehicles for various County departments. The total amount of the note was $1,215,590 and is payable
over five years. This note is secured by the vehicles purchased. The first payment was made in February 2016. The
annual interest rate is 2.51%. The outstanding balance as of June 30, 2018 is $493,351.
E. LEASE OBLIGATIONS
OPERATING LEASE – PRIMARY GOVERNMENT
In October 2009, Queen Anne’s County entered into an operating lease agreement as lessor for ground space at the Bay
Bridge Airport. The Airport leased a parcel of land approximately 9,000 square feet to CSP Properties, LLC beginning in
November 2009 for a term of twenty-five years, ending in fiscal year 2035. Included in the lease agreement is the
requirement that the lessee, CSP Properties, LLC, construct an aircraft hangar at its sole expense, subject to certain
criteria. At the end of the lease, the aircraft hangar and any improvements made to it become the sole property of the Bay
Bridge Airport.
Lease revenues for the year ended June 30, 2018 amounted to $6,445. Minimum future lease revenues are as follows:
Fiscal Year Ending lease
June 30, payments
2019 $ 5,598
2020 5,635
2021 5,635
2022 5,710
2023 5,748
2024-2028 29,239
2029-2033 30,218
2034-2035 8,255
Minimum Future Rental Revenue $ 96,038
-85-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
F. LOCAL DEBT POLICY
PRIMARY GOVERNMENT
In May 2013, Queen Anne’s County adopted Resolution No. 13-04, which updated and replaced Resolution No. 09-13,
to continue a local debt policy in compliance with Article 95, Section 22F of the Annotated Code of Maryland. This
policy requires that the County’s Director of Budget, Finance, and Information Technology: (1) prepare a six-year capital
project plan each year; (2) propose an amount to be transferred from the General Fund operating balances to the General
Capital Projects Fund to serve as pay-as-you-go funding in the latter Fund, in order to lessen the need for future County
debt; (3) limit the County’s non-bonded indebtedness to $8.0 million for general operating expenses or capital
improvements; and (4) certify that the sum of outstanding general bonded debt and any new general obligation debt is
2.5% or less of the total taxable assessable base and is $3,000 or less per capita. This policy also stipulates that although
there is some flexibility as to the acceptable percentage of debt service to general fund expenditures, and no absolute
limit has been established by the rating agencies or the Government Finance Officers Association, anything above 12% of
total general fund expenditures would be a cause to carefully monitor debt service. In addition to the debt policy, the
Spending Affordability Committee recommended that the limit of debt service to general fund expenditures should be
limited to 10% and the County Commissioners have adopted that as a limit.
Queen Anne’s County has complied with the above policy, and has not had any violations. For calculations relating to
this local debt policy, see Table 12-b in the Statistical Section of this document.
-86-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 10 – RESTRICTED ASSETS AND LIABILITIES AND FUND BALANCES
A. RESTRICTED ASSETS AND RELATED LIABILITIES
PRIMARY GOVERNMENT
BUSINESS-TYPE ACTIVITIES
Queen Anne’s County Sanitary District
Restricted Fund - The County Commissioners created a restricted fund within the Sanitary District Enterprise Fund in
November of 1989 by enabling legislation. Revenue sources to the fund are sales of water and sewer allocations and
interest earned on investments. Authorized uses of restricted funds are major capital expenses for repairs, construction,
plant expansion, debt service, or other similar uses within the Sanitary District. To date, such funds have been used
almost exclusively for debt service.
Debt Service Fund - Principal and interest payments for water and wastewater debt used to expand the service area are
payable primarily from water and sewer special benefit assessments. These assessments, made at the time the expansion
is ready for use, are created by enabling legislation and amortized over the same life as underlying debt. They constitute
a lien on the served property and may be prepaid at any time. The amount of assessments collectable in future years is
recorded as benefit assessments receivable. A portion of those assessments receivable is not due currently and is
recorded as unearned revenue.
Water Quality Revolving Loan Fund debt covenants stipulate that sufficient financial resources must be available in the
Debt Service Fund as of June 30 of each year to cover the subsequent year’s debt service payments. If such resources are
not available at that time, the covenants require that the County increase service rates, impose benefit assessments, or
otherwise increase financial resources so that debt service payments are covered before they are due throughout the year.
The assets and related liabilities restricted for the above purposes at June 30, 2018 are as follows:
Sanitary District
Business -Type Activities Restricted Debt Service Total
Current Restricted Assets
Equity in Pooled Cash $ 6,988,210 $ 1,060,045 $ 8 ,048,255
Accounts Receivable (Net) 5,514 89 5 ,603
Subtotal Current Restricted Assets 6,993,724 1,060,134 8 ,053,858
LESS Current Liabilities Associated with Restricted Assets
Accounts Payable ( 36,766) - (36,766)
Net Current Restricted Assets 6,956,958 1,060,134 8 ,017,092
Noncurrent Restricted Assets
Special Assessments Receivable (Net) 968,558 - 9 68,558
LESS Deferred Inflows - Unavailable Water and Sewer Assessments ( 968,558) - (968,558)
Net Restricted Assets $ 6,956,958 $ 1,060,134 $ 8 ,017,092
-87-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 10 – RESTRICTED ASSETS AND LIABILITIES AND FUND BALANCES (CONTINUED)
B. RESTRICTED NET POSITION
PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES
Net Investment in Capital Assets for governmental activities, is calculated as follows:
Governmental Activities
Total Debt excluding Compensated Absences, Pension and OPEB Obligations $ (132,897,095)
(includes $1,087,670 for deferred charge on refunding)
Add back: Debt relating to Board of Education Assets $ 57,168,629
Add back: Unspent portion of Bond Proceeds for Board of Education debt 1 ,456,727
Add back: Unspent portion of Bond Proceeds for Governmental debt 3 ,083,170
Add back: Debt relating to Chesapeake College 6 ,311,935
Add back: Debt relating to PHA 931,074
Add back: Debt relating to non-capital assets (Dredging) 924,108
Add back debt unrelated to Capital Assets 69,875,643
Net Assets Invested in Capital Assets 177,815,678
Net Investment in Capital Assets $ 114,794,226
BUSINESS-TYPE ACTIVITIES
Net Investment in Capital Assets, Restricted Amounts, Unrestricted Amounts, and Net Position for business-type
activities, are as follows:
Sanitary District Non-Major Total
Sewer Water Restricted Debt Service Total Bay Bridge Enterprise Enterprise
Business-Type Activities Operating Operating Fund Fund Sanitary Airport Funds Funds
Capital Assets, net of Accumulated Depreciation $ 6 7,611,383 $ 19,183,480 $ - $ - $ 86,794,863 $ 1 8,545,354 $ 7,481,007 $ 112,821,224
Less: Debt excluding Compensated Absences,
OPEB, and Net Pension Liability (25,484,821) - - - (25,484,821) (1,922,630) (1,053,565) (28,461,016)
Plus: Deferred Charge on Refunding - - - - - 1 2,984 13,099 26,083
Net Investment in Capital Assets 4 2,126,562 19,183,480 - - 61,310,042 1 6,635,708 6,440,541 84,386,291
Restricted Amounts
Debt Service - - - 1,060,134 1,060,134 - - 1,060,134
Total Unrestricted Amounts 7 7,503 2,345,472 6,956,958 - 9,379,933 (1,591,350) (329,587) 7,458,996
Total Net Position $ 4 2,204,065 $ 21,528,952 $ 6,956,958 $ 1,060,134 $ 71,750,109 $ 1 5,044,358 $ 6,110,954 $ 92,905,421
-88-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 10 – RESTRICTED ASSETS AND LIABILITIES AND FUND BALANCES (CONTINUED)
C. FUND BALANCES
PRIMARY GOVERNMENT
Governmental fund balances are composed of the following:
Total
General General Roads Non-Major Governmental
Governmental Funds Fund Capital Capital Governmental Funds
Nonspendable
Loans Receivable $ - $ 2,182,392 $ - $ 5,401,161 $ 7,583,553
Inventory 967,201 - - - 967,201
Prepaid Items 34,409 - - - 34,409
Subtotal Nonspendable 1,001,610 2,182,392 - 5,401,161 8,585,163
Restricted
Rainy Day Fund 10,906,358 - - - 10,906,358
Unspent Bond Proceeds - 4,539,897 - - 4,539,897
Economic and Community Development - - - 996,114 996,114
Agricultural Easements - - - 415,602 415,602
Impact Fees - 247,435 - - 247,435
Inmate Welfare - - - 221,303 221,303
Critical Areas - - - 191,858 191,858
Mosquito Control 91,483 - - - 91,483
Sheriff's Drug Task Force - - - 133,798 133,798
Vehicle Acquisition - 38,200 - - 38,200
Dredging - - - 27,572 27,572
Sheriff - Federal Confiscated Funds 1,959 - - - 1,959
Donor-Specified Purposes - - - 3,562 3,562
Subtotal Restricted 10,999,800 4,825,532 - 1,989,809 17,815,141
Committed
Encumbrances 27,897 - - - 27,897
Impact Fees - - - 9,169,727 9,169,727
Revenue Stabilization Fund 5,000,000 - - - 5,000,000
Economic Development - 855,793 - 2,844,684 3,700,477
Rubble Surcharge - 661,378 - - 661,378
Developer Exactions - 1,054,633 615,450 - 1,670,083
Agricultural Easements - - - 550 550
Subtotal Committed 5,027,897 2,571,804 615,450 12,014,961 20,230,112
Assigned
Encumbrances - 9,943,552 1,604,818 - 11,548,370
Subsequent Years' Expenditures 681,927 4,874,735 285,000 509,685 6,351,347
Capital Projects - 2,172,208 228,645 - 2,400,853
Income Tax Contingency 801,900 - - - 801,900
Subtotal Assigned 1,483,827 16,990,495 2,118,463 509,685 21,102,470
Unassigned
General Fund 11,142,331 - - - 11,142,331
Housing and Community Services - - - (6,897) (6,897)
Fire Company Impact Fees - - - (41,861) (41,861)
Subtotal Unassigned 11,142,331 - - (48,758) 11,093,573
Total Governmental Funds Balances $ 29,655,465 $ 26,570,223 $ 2,733,913 $ 19,866,858 $ 78,826,459
Encumbrances included in the General Capital and Roads Capital funds are for the following purposes:
General Roads
Capital Capital
General Government $ 4,105,375 $ -
Parks & Recreation 2,349,787 -
Economic Development 1,378,876 -
Education 826,109 -
Public Works 497,695 -
Public Safety 365,028 -
Library 324,309
Conservation of Natural Resources 72,960 -
Social Services 23,413
Resurfacing Contracts and Materials - 1,083,625
Roads Construction Equipment - 521,193
Total Encumbrances $ 9,943,552 $ 1,604,818
-89-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 11 - RISK MANAGEMENT
The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; and natural disasters. The government carries commercial insurance to cover such risks. Certain
assets of the County such as roads, bridges, and other infrastructure are not insurable due to their nature.
General Insurance Coverage - The County is a participant in the Local Government Insurance Trust (LGIT), which is
a consortium of Maryland local governments created to provide insurance coverage and services to Maryland local
governments. The LGIT provides general liability, public officials’ liability, fleet insurance, and building and
property insurance to its members.
Workmen’s compensation and fidelity insurance are obtained from various commercial insurance companies.
Risk Sharing - Subscribers to coverage provided by LGIT share the risk among participants of the pools. As a result,
the County's annual premium requirements will be affected by the loss experience of the various insurance pools in
which it participates. Also, the County may be subject to additional assessments from time to time. These amounts
would be recorded as expenditures when they are probable and can be reasonably estimated. Conversely, favorable
performance of certain insurance pools may result in reduced premiums.
Health Insurance - Effective with the 1996 fiscal year, the County joined together with other Eastern Shore county
governments, libraries, and Boards of Education to form the Eastern Shore of Maryland Education Consortium Health
Insurance Alliance (ESMEC), a public entity risk pool currently operating as a common risk management and
insurance program for health insurance coverage. CareFirst BlueCross BlueShield, of Maryland, administers this
program.
The agreement for formulation of the alliance provides that the pool will be self-sustaining through member
premiums. In addition to the annual premiums, the pooling agreement provides for additional assessments, if needed,
but not to exceed certain limits. No additional assessments were needed for fiscal 2018 and, as of the date of this
report, it is believed that there are no outstanding claims in excess of the equity of the trust.
Effective January 2017, the County prescription plan moved to a new pharmacy benefit manager, Express Scripts,
which is separate from CareFirst.
Settlements - In fiscal year 2018, the County paid out $29,874 as a result of a settlement involving an employee. For
the three years prior, settlements have not exceeded insurance coverage for any type of policy in effect.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 12 - RETIREMENT PLANS
Virtually all full and eligible part-time employees of Queen Anne’s County, Maryland, and its related agencies are
covered by one of the statewide contributory pension systems of the State of Maryland.
Maryland State Retirement and Pension Systems
Organization
The State Retirement Agency is the administrator of the Maryland State Retirement and Pension System (the System).
The System was established by the State Personnel and Pensions Article of the Annotated Code of Maryland to provide
retirement allowances and other benefits to State employees, teachers, police, judges, legislators, and employees of
participating governmental units. Responsibility for the System’s administration and operation is vested in a 15 member
Board of Trustees. The System is made up of two cost-sharing employer pools: the “State Pool” and the “Municipal
Pool”. The State Pool consists of State agencies, boards of education, community colleges, and libraries. The Municipal
Pool consists of participating governmental units that elected to join the System. Neither pool shares in each other’s
actuarial liabilities, thus participating governmental units that elect to join the System (the “Municipal Pool”) share in the
liabilities of the Municipal Pool only. The State Retirement Agency issues a publicly available financial report that
includes financial statements and required supplementary information for the System. That report may be obtained by
writing to the State Retirement and Pension System of Maryland, 120 E. Baltimore Street, Suite 1660, Baltimore,
Maryland 21202-1600 or on-line at www.sra.maryland.gov.
The System is comprised of the Teachers’ Retirement and Pension Systems, Employees’ Retirement and Pension
Systems, State Police Retirement System, Judges’ Retirement System, and the Law Enforcement Officers’ Pension
System (LEOPS).
The following groups of employees participate in:
Employees Plan
Board of Education - regular employees Employees System
Board of Education - teachers Teachers System
Library Teachers System
Queen Anne's County:
Elected officials Employees System
Sheriff's Deputies LEOPS
Regular employees Employees System
The System is a cost sharing multiple-employer defined benefit pension plan.
Basis of Accounting
The System’s financial statements are prepared on the accrual basis of accounting in accordance with accounting
principles generally accepted in the United States of America. For purposes of measuring net pension liability, deferred
outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the
fiduciary net position of the System and additions to/deductions from the System’s fiduciary net position have been
determined on the same basis as they are reported by the System. For this purpose, benefit payments (including refunds
of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are
reported at fair value.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 12 - RETIREMENT PLANS (CONTINUED)
Covered Members
Teachers’ Retirement and Pension Systems
The Teachers’ Retirement System was established on August 1, 1927, to provide retirement allowances and other benefits
to teachers in the State. Effective January 1, 1980, the Teachers’ Retirement System was closed to new members and the
Teachers’ Pension System was established. As a result, teachers hired after December 31, 1979, became members of the
Teachers’ Pension System as a condition of employment. On or after January 1, 2005, an individual who is a member of
the Teachers’ Retirement System may not transfer membership to the Teachers’ Pension System.
Employees’ Retirement and Pension Systems
On October 1, 1941, the Employees’ Retirement System was established to provide retirement allowances and other
benefits to State employees, elected and appointed officials and the employees of participating governmental units.
Effective January 1, 1980, the Employees’ Retirement System was essentially closed to new members and the
Employees’ Pension system was established. As a result, State employees (other than correctional officers) and
employees of participating governmental units hired after December 31, 1979, became members of the Employees’
Pension System as a condition of employment, while all State correctional officers and members of the Maryland General
Assembly continue to be enrolled as members of the Employees’ Retirement System. On or after January 1, 2005, an
individual who is a member of the Employees’ Retirement System may not transfer membership to the Employees’
Pension System.
The Law Enforcement Officers’ Pension System (LEOPS)
The Law Enforcement Officers’ Pension System (LEOPS) was established on July 2, 1990, to provide retirement
allowances and other benefits for certain State and local law enforcement officers. This System includes both retirement
plan and pension plan provisions which are applicable to separate portions of the System’s membership. The retirement
plan provisions are only applicable to those members who, on the date they elected to participate in LEOPS, were
members of the Employees’ Retirement System. This System’s pension plan provisions are applicable to all other
participating law enforcement officers.
Summary of Significant Plan Provisions
All plan benefits are specified by the State Personnel and Pensions Article of the Annotated Code of Maryland. For all
individuals who are members of the Employees’, Teachers’, Correctional Officers’ or State Police Retirement System on
or before June 30, 2011, retirement allowances are computed using both the highest three years’ Average Final
Compensation (AFC) and the actual number of years of accumulated creditable service. For individuals who become
members of the State Police Retirement System or the Correctional Officers’ Retirement System on or after July 1, 2011,
retirement allowances are computed using both the highest five years’ AFC and the actual number of years of
accumulated creditable service. For all individuals who are members of the pension systems of the State Retirement and
Pension System on or before June 30, 2011, pension allowances are computed using both the highest three consecutive
years’ AFC and the actual number of years of accumulated creditable service. For any individual who becomes a
member of one of the pension systems on or after July 1, 2011, pension allowances are computed using both the highest
five consecutive year’s AFC and the actual number of years of accumulated creditable service. Various retirement
options are available under each system which ultimately determines how a retiree’s benefit allowance will be computed.
Some of these options require actuarial reductions based on the retiree’s and/or designated beneficiary’s attained age and
similar actuarial factors.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 12 - RETIREMENT PLANS (CONTINUED)
Beginning July 1, 2011, the member contribution rate was increased for members of the Teachers’ Pension System and
Employees’ Pension Systems from 5% to 7% and from 4% to 6% respectively, in fiscal year 2013 and 7% in the fiscal
year 2014 and beyond for members of the Law Enforcement Officers’ Pension System. Beginning July 1, 2013, the
member contribution rate was increased for members of the Judges’ Retirement System from 6% to 8%.
In Addition, the benefit attributable to service on or after July 1, 2011 in many of the pension systems now will be subject
to different cost-of-living adjustments (COLA) that is based on the increase in the Consumer Price Index (CPI) and
capped at 2.5% or 1.0% based on whether the market value investment return for the preceding calendar year was higher
or lower than the investment return assumption used in the valuation.
A brief summary of the retirement eligibility requirements of and the benefits available under the various systems in
effect are as follows:
Service Retirement Allowances
A member of either the Teachers’ or Employees’ Retirement System is generally eligible for full retirement benefits upon
the earlier of attaining age 60 or accumulating 30 years of creditable service regardless of age. The annual retirement
allowance equals 1/55 (1.81%) of the member’s AFC multiplied by the number of years of accumulated creditable
service.
An individual who is a member of either the Teachers’ or Employees’ Pension System on or before June 30, 2011, is
eligible for full retirement benefits upon the earlier of attaining age 62, with specified years of eligibility service, or
accumulating 30 years of eligibility service regardless of age. An individual who becomes a member of either the
Teachers’ or Employees’ Pension System on or after July 1, 2011, is eligible for full retirement benefits if the member’s
combined age and eligibility service equals at least 90 years or if the member is at least age 65 and has accrued at least 10
years of eligibility service.
For most individuals who retired from either the Teachers’ or Employees’ Pension System on or before June 30, 2006,
the annual pension allowance equals 1.2% of the member’s AFC, multiplied by the number of years of creditable service
accumulated prior to July 1, 1998, plus 1.4% of the member’s AFC, multiplied by the number of years of creditable
service accumulated subsequent to June 30, 1998. With certain exceptions, for individuals who are members of the
Teachers’ or Employees’ Pension System on or after July 1, 2006, the annual pension allowance equals 1.2% of the
member’s AFC, multiplied by the number of years of creditable service accumulated prior to July 1, 1998, plus 1.8% of
the member’s AFC, multiplied by the number of years of creditable service accumulated subsequent to June 30, 1998.
Beginning July 1, 2011, any new member of the Teachers’ or Employees’ Pension System shall earn an annual pension
allowance equal to 1.5% of the member’s AFC multiplied by the number of years of creditable service accumulated as a
member of the Teachers’ or Employee’s Pension System.
Exceptions to these benefit formulas apply to members of the Employees’ Pension System, who are employed by a
participating governmental unit that does not provide the 1998 or 2006 enhanced pension benefits or the 2011 reformed
pension benefits. The pension allowance for those members equals 0.8% of the member’s AFC up to the social security
integration level (SSIL), plus 1.5% of the member’s AFC in excess of the SSIL, multiplied by the number of years of
accumulated creditable service. For the purpose of computing pension allowances, the SSIL is the average of the social
security wage bases for the past 35 calendar years ending with the year the retiree separated from service.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 12 - RETIREMENT PLANS (CONTINUED)
A member of the Law Enforcement Officers’ Pension System is eligible for full retirement benefits upon the earlier of
attaining age 50 or accumulating 25 years of eligibility service regardless of age. The annual retirement allowance for a
member who is covered under the retirement plan provisions equals 1/50 (2.0%) of the member’s AFC multiplied by the
number of years of accumulated creditable service up to 30 years, plus 1/100 (1.0%) of the member’s AFC multiplied by
the number of years of accumulated creditable service in excess of 30 years. For members subject to the pension
provisions, full service pension allowances equal 2.0% of AFC up to a maximum of 60% (30 years of credit).
Vested Allowances
Any individual who is a member of the State Retirement and Pension System on or before June 30, 2011 (other than a
judge or a legislator), and who terminates employment before attaining retirement age but after accumulating 5 years of
eligibility service is eligible for a vested retirement allowance. Any individual who joins the State Retirement and
Pension System on or after July 1, 2011 (other than a judge or a legislator), and who terminates employment before
attaining retirement age but after accumulating 10 years of eligibility service is eligible for a vested retirement allowance.
A member, who terminates employment prior to attaining retirement age and before vesting, receives a refund of all
member contributions and interest.
Early Service Retirement
A member of either the Teachers’ or Employees’ Retirement System may retire with reduced benefits after completing 25
years of eligibility service. Benefits are reduced by 0.5% per month for each month remaining until the retiree either
attains age 60 or would have accumulated 30 years of creditable service, whichever is less. The maximum reduction for a
Teachers’ or Employees’ Retirement System member is 30%.
An individual who is a member of either the Teachers’ or Employees’ Pension System on or before June 30, 2011 may
retire with reduced benefits upon attaining age 55 with a least 15 years of eligibility service. Benefits are reduced by
0.5% per month for each month remaining until the retiree attains age 62. The maximum reduction for these members of
the Teachers’ or Employees’ Pension System is 42%. An individual who becomes a member of either the Teachers’ or
Employees’ Pension System on or after July 1, 2011, may retire with reduced benefits upon attaining age 60 with at least
15 years of eligibility service. Benefits are reduced by 0.5% per month for each month remaining until the retiree attains
age 65. The maximum reduction for these members of the Teachers’ or Employees’ Pensions System is 30%.
Members of the State Police, Judges’, Law Enforcement Officers’ and Local Fire and Police Systems are not eligible for
early service benefits.
Disability and Death Benefits
Generally, a member covered under retirement plan provisions who is permanently disabled after 5 years of service
receives a service allowance based on a minimum percentage (usually 25%) of the member’s AFC. A member covered
under pension plan provisions who is permanently disabled after accumulating 5 years of eligibility service receives a
service allowance computed as if service had continued with no change in salary until the retiree attained age 62. A
member (other than a member of the Maryland General Assembly or a judge, both of which are ineligible for accidental
disability benefits) who is permanently and totally disabled as the result of an accident occurring in the line of duty
receives 2/3 (66.7%) of the member’s AFC plus an annuity based on all member contributions and interest. Death
benefits are equal to a member’s annual salary as of the date of death plus all member contributions and interest.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 12 - RETIREMENT PLANS (CONTINUED)
Adjusted Retirement Allowances
Retirement and pension allowances are increased annually to provide for changes in the cost of living according to
prescribed formula. Such adjustments for retirees are based on the annual change in the CPI. For the Teachers’ and
Employees’ Retirement Systems (TRS/ERS) the method by which the annual COLA’s are computed depends upon
elections made by members who were active on July 1, 1984 (or within 90 days of returning to service, for members who
were inactive on July 1, 1984) enabling the member to receive either an unlimited COLA , a COLA limited to 5% or a
two part combination COLA depending upon the COLA election made by the member.
Effective July 1, 1998, for Teachers’, Employees’, and LEOPS retirees, the adjustment is capped at a maximum 3%
compounded and is applied to all benefits which have been in payment for one year. The annual increase to pension
allowances for Employees’ Pension System retirees who were employed by a participating governmental unit that does
not provide enhanced pension benefits are limited to 3% of the initial allowance.
However, beginning July 1, 2011, for benefits attributable to service earned on or after July 1, 2011, in all of the systems
except the judges’ and legislators’ systems, the adjustment is capped in the lesser of 2.5% or the increase in CPI if the
most recent calendar year market value rate of return was greater than or equal to the assumed rate. The adjustment is
capped at the lesser of 1% or the increase in CPI if the market value return was less than the assumed rate of return. In
years in which COLAs would be less than zero due to a decline in the CPI, retirement allowances will not be adjusted.
COLAs in succeeding years are adjusted until the difference between the negative COLA that would have applied and the
zero COLA is fully recovered.
Actuarial Assumptions
The total pension liability in the June 30, 2017 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement:
Inflation In the 2016 actuarial valuation, 2.90% general, 3.20% wage. In the 2017 actuarial
valuation, 2.65% general, 3.15% wage.
Salary Increases In the 2016 actuarial valuation, 3.20% to 9.20%. In the 2017 actuarial valuation,
3.15% to 9.15%.
Investment Rate of Return In the 2016 actuarial valuation, 7.55%. In the 2017 actuarial valuation, 7.50%.
Discount Rate 7.50%
Retirement Age Experience-based table of rates that are specific to the type of eligibility
condition. Last updated for the 2015 valuation pursuant to an experience study of
the period 2010 - 2014.
Mortality RP-2014 Mortality Tables with generational mortality projections using scale
MP-2014, calibrated to MSRPS experience.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 12 - RETIREMENT PLANS (CONTINUED)
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 weighing 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 Board of Trustees after
considering input from the System’s investment consultant(s) and actuary(s). For each major asset class that is included
in the System’s target asset allocation, these best estimates are summarized in the following table:
Long-Term
Expected Real Rate
Asset Class Target Allocation of Return
Public Equity 36% 5.3%
Private Equity 11% 7.0%
Rate Sensitive 21% 1.2%
Credit Opportunity 9% 3.6%
Real Assets 15% 5.7%
Absolute Return 8% 3.1%
Total 100%
The above was the Board of Trustees adopted asset allocation policy and best estimate of geometric real rates of return
for each major asset class as of June 30, 2017.
For the year ended June 30, 2017, the annual money-weighted rate of return on pension plan investments, net of the
pension plan investment expense, was 10.0%. The money-weighted rate of return expresses investment performance, net
of investment expense, adjusted for the changing amounts actually invested.
Discount rate
A single discount rate of 7.50% 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 7.50%. 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 at rates 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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 12 - RETIREMENT PLANS (CONTINUED)
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
plan’s net pension liability, calculated using a single discount rate of 7.50%, as well as what the plan’s net pension
liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher:
1% Decrease Discount Rate 1% Increase
System to 6.50% 7.50% to 8.50%
County $ 37,784,999 $ 26,661,766 $ 17,432,624
Board of Education 6 ,234,708 4 ,399,321 2 ,876,468
Teachers’ and Employees’ Retirement Systems and Teachers’ and Employees’ Pension Systems
Employer Contributions:
In accordance with Maryland Senate Bill 1301, Budget Reconciliation and Financing Act of 2012, the Board is required
to pay the State a specified percentage of the normal cost portion of the total pension cost for teachers. The normal cost is
the portion of the total retirement benefit cost that is allocated to the current year of the employee’s service. The
specified percentage increases each fiscal year, until fiscal year 2017, when the Board will be paying 100% of the normal
cost for each teacher.
Pension Liabilities, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related
to Pensions
Because the State of Maryland pays the unfunded liability for the Teachers’ Systems on behalf of the Board and Library,
and the Board pays the normal cost for the Teachers’ Systems, the Board and Library are not required to record its’ share
of the unfunded pension liability for the Teachers’ Systems, the State of Maryland is required to record that liability. The
Board is required to record a liability for the Employees’ Systems.
At June 30, 2018, the Board of Education reported a liability for its proportionate share of the net pension liability that
reflected a reduction for State pension support provided to the Board. The amount recognized by the Board as its
proportionate share of the net pension liability, the related State support, and the total portion of the net pension liability
that was associated with the Board were as follows:
Board's proportionate share of the net pension liability $ 4,399,321
State's proportionate share of the net pension liability 67,996,368
Total $ 72,395,689
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 12 - RETIREMENT PLANS (CONTINUED)
The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The County’s proportion of the net pension
liability was calculated as follows by the System(s):
1. Calculate the net pension liability for the entire System. For purposes of funding the System, all calculations are
determined on an actuarial basis and are completed through the development of rates based on two separate
asset pools, one for employees of the State of Maryland (the State) and one for the Participating Governmental
Units (“PGUs”). These pools are kept on an actuarial basis and allow for the State to fund only State employees
and PGUs to fund only PGU employees. For the accounting of the System, however, the assets of the System
are accounted in a single pool which is audited annually.
2. Determine the total contributions to the System by the State and PGUs, inclusive of any underfunding of
contributions.
3. Based on the number of participants at each Board of Education, calculate the difference between what each
Board would have contributed if they funded at the rate of all other participating governments and what the
Board actually contributed. The difference between what the Board contributed and what they would have
contributed if they funded at the rate of the other participating governments, is then added to the total
contribution to the System, to calculate the System’s adjusted contribution.
4. Calculate for each participating government, their percentage of the adjusted System contribution by dividing
the total adjusted System contribution into each primary government contribution.
5. Provide each PGU its adjusted percentage of contribution and the System’s net pension liability and other
related amounts.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 12 - RETIREMENT PLANS (CONTINUED)
At June 30, 2018, the County reported the following related to pensions:
BOARD OF
COUNTY EDUCATION
Employer's proportionate (percentage) of the collective net pension liability 0.1232988% 0.0203449%
Employer's proportionate share of the collective net pension liability $ 26,661,766 $ 4,399,321
Pension expense recognized by the employer for the year ended June 30, 2018 $ 2,328,748 $ 1 99,231
Deferred outflows of resources June 30, 2017 $ 8,235,118 $ 1,430,997
Year end June 30, 2017 contributions ( 2,509,551) (414,089)
Difference between expected and actual experience - 21,901
Change in assumptions 132,731 -
Amortization of items allowed by GASB 68 ( 1,609,067) (287,231)
Year end June 30, 2018 contributions 2 ,759,698 459,901
Deferred outflows of resources June 30, 2018 $ 7,008,929 $ 1,211,479
Deferred inflows of resources June 30, 2017 $ 1,739,716 $ 3 25,666
Net difference between projected and actual investment earnings 1 ,065,203 388,924
Difference between actual and expected experience 1 ,291,840 -
Amortization of items allowed by GASB 68 (675,878) (128,373)
Deferred inflows of resources June 30, 2018 $ 3,420,881 $ 5 86,217
NPL June 30, 2017 $ 30,000,070 $ 5,140,060
Change in NPL factored for contributions ( 3,338,304) (740,739)
NPL June 30, 2018 $ 26,661,766 $ 4,399,321
The $2,759,698 and $459,901 of deferred outflows of resources resulting from the County and the Board’s contributions
to the Employees’ Systems subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ending June 30, 2019. Other amounts reported as deferred outflows of resources will be amortized
over a five year period, as follows:
2017 Balance Amortization 2016 Balance Amortization 2015 Balance Amortization 2014 Balance Amortization
Deferred Deferred Deferred Deferred Deferred Deferred Deferred
Outflows Inflows Outflows Inflows Deferred Outflows Inflows Outflows Inflows
Actual and Net Difference Actual and Net Difference Actual and Actual and
Change in Expected In Investment Change in Expected In Investment Change in Expected Change in Expected
June 30, Assumptions Experience Earnings Assumptions Experience Earnings Assumptions Experience Assumptions Experience
2019 $ 27,774 $ (270,322) $ (266,301) $ 743,949 $ ( 67,568) $ 544,357 $ 254,106 $ (103,957) $ 66,656 $ (504,352)
2020 2 7,774 (270,322) (266,301) 743,949 (67,568) 544,357 254,106 (103,957) - -
2021 2 7,774 (270,322) (266,301) 743,949 (67,568) - 221,071 (90,441) - -
2022 2 7,774 (270,322) (266,300) - (58,427) - - - - -
2023 2 1,635 (210,552) - - - - - - - -
Total $ 132,731 $ (1,291,840) $ ( 1,065,203) $ 2 ,231,847 $ (261,131) $ 1,088,714 $ 729,283 $ (298,355) $ 66,656 $ (504,352)
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 12 - RETIREMENT PLANS (CONTINUED)
Total Covered On-Behalf
Payroll Payroll By State
County - MD Retirement and pension $ 3 0,352,435 $ 2 6,088,825 $ -
Board of Education 60,117,229 56,180,104 5,940,289
Library 1,266,521 1,266,521 168,956
Covered payroll refers to all compensation paid to active employees covered by the Systems.
Pension contributions made by the State of Maryland, on behalf of the Board of Education and the Library are recognized
as both revenue and expenditure.
NOTE 13 - DEFERRED COMPENSATION PLAN
The County offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section
457. The Plan, available to all County employees, permits them to defer a portion of their salary until future years.
Participation in the plan is optional. The deferred compensation is not available to employees until termination,
retirement, death or unforeseeable emergency.
All amounts of compensation deferred under the plan; all property and rights purchased with those amounts; and all
income attributable to those amounts, property or rights are solely the property and rights of the participants. The County
has no liability for losses under the plan.
Investments are managed by the plan’s administrator based on several different investment options, or combinations
thereof. The choice of the investment option(s) to be used is made by each participant. The County has no management
control over the assets of the plan. Accordingly, per GASB Statement No. 32, the assets of the plan are not included in
these financial statements.
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS
Other Post-Employment Benefit Trust (OPEB Trust)
On June 23, 2009, the County enacted County Ordinance No. 09-12, which established a Trust entity entitled “Other
Post-Employment Benefit Trust – County Commissioners of Queen Anne’s County, County Commissioners of Kent
County, and Participating Agencies” (OPEB Trust). The purpose of the OPEB Trust is to: (1) fund costs of health
insurance and other post-employment benefits to eligible retirees of the primary government, the Queen Anne’s County
Board of Education, and the Queen Anne’s County Free Library; (2) accumulate and invest financial resources for this
purpose; (3) provide health insurance and other post-employment benefits for eligible retirees; and (4) provide related
administrative services.
Other agencies and political subdivisions have the right to participate in this Trust now and in the future. Such unrelated
entities may deposit funds with the Trust for investment purposes related to their OPEB plans. At June 30, 2018, funds in
the amount of $157,645 were reported as a liability of the Trust to Kent County, Maryland. Kent County is holding these
assets for the benefit of their plan participants.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Other Post-Employment Benefit Trust (OPEB Trust) (Continued)
OPEB Trustees have exclusive authority to manage the assets of the Trust. The Board of Trustees consists of five
members: two representing Queen Anne’s County Government; two representing the Queen Anne’s County Board of
Education; and one representing Kent County. In lieu of separate financial statements for the OPEB Trust, Queen Anne’s
County presents the Trust entity’s complete financial statements within this document.
In fiscal year 2015, the County Commissioners approved the County joining the MACo (Maryland Association of
Counties) Pooled OPEB Investment Trust Fund. All information presented in this note on other post-employment
benefits refer to the Trust entity entitled “Other Post-Employment Benefit Trust – County Commissioners of Queen
Anne’s County, County Commissioners of Kent County, and Participating Agencies” (OPEB Trust). A separate Trust
document for the MACo OPEB Trust can be found on the MACo website at www.mdcounties.org.
PRIMARY GOVERNMENT
Plan Reporting
The measurement date for GASB 74 is the Employer’s fiscal year end, June 30, 2018. Plan assets (Fiduciary Net
Position) are measured as of this date. The Total OPEB Liability (TOL) as of this date is based on an actuarial valuation
as of January 1, 2017, with adjustments made for the one-and-a-half year difference. Adjustments include Service Cost,
Interest on Total OPEB Liability, and expected benefit payments during the year. This is also known as a roll-forward.
Under GASB 74, the Net OPEB Liability (NOL) is established as the difference between the Total OPEB Liability and
the Plan Fiduciary Net Position. The NOL is very much like the unfunded actuarial accrued liability that is developed for
the funding valuation, with adjustments for any time between the valuation date and the measurement date.
Relevant Dates
 Valuation Date: January 1, 2017
 Measurement Date: June 30, 2018
 Reporting Date: June 30, 2018
Plan Membership
The following is a summary of the plan membership as of January 1, 2017.
Active 389
Retired 174
Total 563
Plan Description
The County’s Other Post-Employment Benefit Plan (OPEB Plan) is an agent multiple-employer defined benefit
healthcare plan that covers retired employees of the primary government, the Queen Anne’s County Board of Education,
and the Queen Anne’s County Free Library. The Plan was established as specified in County Ordinance No. 09-12.
Plan descriptions and actuarial assumptions for each participant are described: (1) as follows for the primary government
and (2) in financial statements issued separately for all other participants.
-101-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Plan description (Continued)
The County’s Retiree Health Insurance Program provides medical insurance benefits to retirees and their eligible
dependents. The retiree and their dependents will receive a subsidy as outlined in the tables below provided that (1) the
retiree retired directly from County service with a County retirement/pension allowance, (2) has health insurance through
the County prior to retirement, (3) retired with at least 15 years of County service, and (4) the retiree elects to participate
upon retirement. Retirees who retire directly from County service with a County retirement/pension with less than 15
years of County service, who have health insurance through the County prior to retirement and who elect to participate
upon retirement are eligible for the County’s Retiree Health Insurance Program however are not eligible for a subsidy.
Medical/Drug Plan
PPO (80/20), EPO (85/15), BCA (85/15), Medicare Supplement
Eligibility
Queen Anne’s County and Library employees are eligible to continue group insurance coverage after retirement provided
that:
a. Retiring employees have coverage in effect when they stop working.
b. Retirement commences on the first of the month, following the last day they are employed.
c. An employee must have been a permanent active employee. To receive a subsidy, must have at least 15 years of
service.
d. Eligibility for Retirement:
Non-LEOPS hired on or after 7/1/2011
 Rule of 90 (age plus service is at least 90), or
 Age 65 with 10 years of service, or
 Age 60 with 15 years of service
Non-LEOPS hired before 7/1/2011
 Age 55 with 15 years of service, or
 Age 62 with 5 years of service, or
 Age 63 with 4 years of service, or
 Age 64 with 3 years of service, or
 Age 65 with 2 years of service, or
 30 years of service (regardless of age)
LEOPS
 Age 50 (no service requirement), or
 25 years of service (no age requirement)
Retiree Payment
The employer subsidy is based on service, which medical plan you are enrolled in, retirement date and location.
-102-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Plan description (Continued)
Employees who retire prior to September 2, 2011 (regardless of medical plan enrolled in)
Years of Subsidy
Service Percentage
0 - 14 0.0%
15 54.0%
16 57.6%
17 61.2%
18 64.8%
19 68.4%
20 72.0%
21 75.6%
22 79.2%
23 82.8%
24 86.4%
25 or more 90.0%
Employees who retire between September 2, 2011 and August 31, 2012
Years of
Subsidy Percentage
Service
EPO Plan PPO Plan
0 - 14 0.0% 0.0%
15 54.0% 54.0%
16 57.6% 57.1%
17 61.2% 60.2%
18 64.8% 63.3%
19 68.4% 66.4%
20 72.0% 69.5%
21 75.6% 72.6%
22 79.2% 75.7%
23 82.8% 78.8%
24 86.4% 81.9%
25 or more 90.0% 85.0%
Employees who retire on or after September 1, 2012
Years of
Subsidy Percentage
Service
EPO Plan PPO Plan
0 - 14 0.0% 0.0%
15 54.0% 54.0%
16 57.1% 56.6%
17 60.2% 59.2%
18 63.3% 61.8%
19 66.4% 64.4%
20 69.5% 67.0%
21 72.6% 69.6%
22 75.7% 72.2%
23 78.8% 74.8%
24 81.9% 77.4%
25 or more 85.0% 80.0%
-103-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Plan description (Continued)
Plan Changes Since Prior Valuation
There have been no changes in eligibility or cost sharing provisions since the prior valuation, which included the retiree
payment changes outlined above.
Actuarial Information
Actuarial assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2017, using the following actuarial
assumptions, applied to all periods included in the measurement:
 Investment Return: 6.00%, net of investment expense and including inflation
 Healthcare Trend: 6.00% initially, grading down to 4.30% ultimate
Mortality rates are based on the RP 2000 tables with Scale AA applied on a generational basis. RP 2000 Disabled tables
are used for those on disability, if applicable.
Changes in Actuarial assumptions
There were no changes in actuarial assumptions since the prior year, except the change in discount rate due to an updated
fund availability analysis.
Actuarial Methods for Determining Employer Contributions
The same economic and demographic assumptions are used for both funding and financial reporting purposes under
GASB 74/75.
The Entry Age method is used for accounting/GASB purposes, therefore all of the actuarial figures within this Report are
based on it. Actuarially Determined Contributions are also based on the Entry Age method, with a closed level
percentage of payroll amortization of the unfunded liability (21 years remaining).
Expected Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in
which best-estimates of expected future real rates of return (expected returns, net of pension plan investment expense and
inflation) are developed for each 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. This is then modified through a Monte-Carlo simulation process, by which a (downward) risk adjustment is
applied to the baseline expected return.
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset
allocation as of June 30, 2018, and the final investment return assumption, are summarized in the following table:
-104-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Expected Return (Continued)
Long-Term Expected
Asset Class Real Return - Portfolio Weight
Domestic Equity 4.50% 48.00%
International Funds 5.95% 13.00%
Fixed Income – U.S. 2.95% 33.00%
Global Funds 4.50% 6.00%
Cash Equivalents 0.75% 0.00%
Total Weighted Average Real Return 4.63% 100.00%
Plus Inflation 2.50%
Total Return w/o Adjustment 7.13%
Risk Adjustment -1.13%
Total Expected Return 6.00%
For the year ended June 30, 2018, the annual money-weighted rate of return on OPEB plan investments was 5.4%. The
money weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing
amounts invested.
Discount Rate
The discount rate used to measure the total OPEB liability is 5.75%. The County’s funding expectations/policy is to
contribute 50% of the Actuarially Determined Contribution in fiscal year 2018, then increase this percentage 10% each
year until the actuarial cost is being contributed in full annually. It is expected that benefits will be paid from the trust
when a 50% funding level is reached. Based on this information, we project that benefits will be financed on a pay as you
go basis until 2029, then from the trust there forward.
Therefore, the expected trust return of 6.00% is blended with the 20-year Aa bond rate* of 3.62%. The blended rate is
5.75%. The prior rate was 5.78%.
*Source: Fidelity general obligation municipal bond index.
Net OPEB Liability
Sensitivity of the net OPEB liability to changes in the discount rate
The following presents the net OPEB liability of the plan, calculated using the current discount rate, as well as what the
net OPEB liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher:
DISCOUNT RATE
1% Decrease to Discount Rate 1% Increase to
System 4.75% 5.75% 6.75%
Net OPEB liability $ 58,658,018 $ 48,899,484 $ 40,681,653
-105-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Sensitivity of the net OPEB liability to changes in the trend rate
The following presents the net OPEB liability of the plan, calculated using the current health care trend rate, as well as
what the net OPEB liability would be if it were calculated using a health care trend rate that is 1% point lower or 1%
point higher:
HEALTH CARE TREND
1% Decrease to Discount Rate 1% Increase to
System 3.30% 4.30% 5.30%
Net OPEB liability $ 39,293,009 $ 48,899,484 $ 60,693,162
Changes in the net OPEB liability are as follows:
Total OPEB Liability ("TOL")
Service cost $ 1,130,747
Interest 2 ,985,530
Changes in benefit terms -
Difference between expected and actual experience -
Changes in assumptions 265,899
Benefit payments (1,498,005)
Net change in total OPEB liability 2 ,884,171
Total OPEB liability - beginning of year 51,266,290
Total OPEB liability - end of year $ 54,150,461
Plan Fiduciary Net Position ("PFNP")
Contributions - employer $ 2,731,447
Contributions - member -
Net investment income 207,932
Benefit payments (1,498,005)
Admin expenses (2,452)
Other -
Net change in plan fiduciary net position 1 ,438,922
Plan fiduciary net position - beginning of year 3 ,812,055
Plan fiduciary net position - end of year 5 ,250,977
Net OPEB liability ("NOL") - beginning of year 47,454,235
Net OPEB liability - end of year $ 48,899,484
PFNP as a % of TOL 9.7%
Covered employee payroll $ 22,282,543
NOL as a % of covered payroll 219.5%
-106-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
OPEB Expense
The amount of OPEB expense recognized in the reporting period are as follows:
Service cost $ 1,130,747
Interest on total OPEB liability 2 ,985,530
Difference between expected and actual experience* -
Changes in actuarial assumptions* 29,558
Employee contributions -
Projected earnings on plan investments (230,155)
Difference between projected and actual earnings* 4,420
Administrative expense 2,452
Other changes in fiduciary net position -
Total OPEB expense $ 3,922,552
* - portions recognized for expense
Deferred Inflow/Outflow Summary
The deferred outflows / inflows are as follows:
Deferred Deferred
Outflows Inflows
June 30, 2017 $ - $ -
Difference between expected and actual experience - -
Changes in actuarial assumptions 2 66,021 -
Net difference between projected and actutal earnings on investments 22,101 -
Amortization of items allowed by GASB 75 ( 33,978) -
June 30, 2018 $ 2 54,144 $ -
Net deferred outflows / (inflows) will be amortized as follows:
2019 $ 33,978
2020 33,978
2021 33,978
2022 33,978
2023 29,558
Thereafter 88,674
Total $ 2 54,144
-107-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS
BOARD OF EDUCATION
Plan description – The Queen Anne’s County Public Schools Retiree Health Plan (QACPSRHP) is a single-employer
defined benefit healthcare plan that is administered by the Board of Education and covers retired employees of the Board
and their dependents. This plan does not include the pension benefits discussed in Note 5. The Plan does not issue a
separate, publicly available report.
The Queen Anne’s County Public Schools Retiree Life Insurance Plan (QACPSRLIP) is a single-employer defined
benefit life insurance plan that is administered by the Board of Education and covers retired employees of the Board.
This plan does not include the pension benefits discussed in Note 5. The Plan does not issue a separate, publicly
available report.
Benefits provided – It is the Board’s policy to contribute a portion of the cost of including its retired teachers and
administrators in its group major medical insurance program. The Board’s contribution can be applied to the coverage of
the retiree, spouse, and dependents, but it is limited to the amounts below and it ceases upon the death of the retiree.
Teachers are required to provide at least ten years of service to the Board before becoming eligible for retiree healthcare
benefits. Once ten years of service is reached, the Board covers 36 percent of the cost of the individual’s EPO health
plan. The percentage subsidized by the Board increases 3.6 percent per year for every year of service in excess of ten. At
25 years of service, the maximum subsidy of 90 percent is reached.
The plan for administrators is similar to that for teachers, with the following exceptions. Administrators are required to
provide at least five years of service to the Board before becoming eligible for retiree healthcare benefits. Once five years
of service is reached, the Board covers 35 percent of the cost of the individual’s EPO health plan. The percentage
subsidized by the Board increases 5.5 percent per year for every year of service in excess of five. At 15 years of service,
the maximum subsidy of 90 percent is reached.
In addition, the Board is contractually obligated to pay the full cost of medical insurance for certain retired directors,
superintendents, and their spouses.
The Board also pays the cost of providing term life insurance for its retirees in varying amounts depending upon length of
service and date of retirement. The benefits payable upon death are $5,000 (fixed) for 5 to 25 years of service or $50,000
(maximum-based on annual salary at retirement) for over 25 years of service. There is a reduction of benefit of 25% at
age 70 and a benefit reduction of 50% at age 75 and beyond.
Employees covered by benefit terms – At July 1, 2017, the following employees were
covered by the benefit terms:
Active plan members 958
Inactive employees or beneficiaries currently receiving benefit payments 353
1311
-108-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
BOARD OF EDUCATION (CONTINUED)
Net OPEB Liability
The Board’s net OPEB liability was measured as of June 30, 2017, and the total OPEB liability used to calculate the net
OPEB liability was determined by an actuarial valuation as of that date.
Actuarial assumptions – The total OPEB liability in the June 30, 2017 actuarial valuation was determined using the
following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Inflation 2.8%
Salary Increases 3.0%
Investment Rate of Return 3.58%
Healthcare Cost Trend Rates 6.0% initially, reduced by decrements to an ultimate rate of 3.7%
Mortality rates were based on the RP2014 White Collar with MP2014 for active healthy participants, and RP2014
Disabled Mortality (set forward 1 Year for Males) for inactive disabled participants.
The long-term expected rate of return on the OBEP plan investments was determined using the money market rate of
return at Shore United Bank. The OPEB plan has invested 100% of the funds in a money market account earning an
annual percent yield of .20%.
Discount rate – The discount rate used to measure the total OPEB liability was 3.58%. The projection of cash flows
used to determine the discount rate assumed that Board contributions will be to fund current contribution levels. Based on
those assumptions, the unfunded rate was used. The unfunded rate is determined by using the 20 year Tax exempt general
obligation municipal bonds with an average rating of AA/Aa or higher. Any increase in the discount rate due to the assets
of the trust is not deemed material. Therefore, the discount rate was applied to all periods of projected benefit payments
to determine the total OPEB liability.
The discount rate changed from the prior measurement date. The discount rate was 2.85% for the June 30, 2016
measurement date.
Changes in the Net OPEB Liability
Total OPEB Plan fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a) - (b)
Balance as of June 30, 2016 for FYE 2017 $ 186,363,041 $ 506,599 $ 185,856,442
Changes for the Year:
Service Cost 9,016,476 - 9,016,476
Interest 5,268,508 - 5,268,508
Experience Losses ( 439,806) - ( 439,806)
ER Trust Contribution - 2,566,424 (2,566,424)
Net Investment Income - 917 (917)
Changes in Assumptions (25,304,521) - (25,304,521)
Benefit Payments (2,566,424) (2,566,424) -
Net Changes (14,025,767) 917 (14,026,684)
Balance as of June 30, 2017 for FYE 2018 $ 172,337,274 $ 507,516 $ 171,829,758
-109-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
BOARD OF EDUCATION (CONTINUED)
Sensitivity of the net OPEB liability to changes in the discount rate and healthcare cost trend rates – The following
presents the net OPEB liability of the Board, as well as what the Board’s net OPEB liability would be if it were
calculated using a discount rate that is 1% lower (2.58%) or 1% higher (4.58%) than the current discount rate:
1% Decrease Discount Rate 1% Decrease
Discount Rate 2.58% 3.58% 4.58%
Total OPEB Liability $ 2 08,234,634 $ 1 72,337,274 $ 144,237,401
Net OPEB Liability (Asset) $ 2 07,727,118 $ 1 71,829,758 $ 143,729,885
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates - The following presents the net
OPEB liability of the Board, as well as what the Board’s net OPEB liability would be if it were calculated using
healthcare cost trend rates that are 1% lower (4.7% decreasing to 2.7%) or 1% higher (6.7% decreasing to 4.7%) than the
current healthcare cost trend rates:
1% Decrease Discount Rate 1% Decrease
Ultimate Trend 2.70% 3.70% 4.70%
Total OPEB Liability $ 1 40,681,015 $ 1 72,337,274 $ 215,009,750
Net OPEB Liability (Asset) $ 1 40,173,499 $ 1 71,829,758 $ 214,502,234
OPEB expense and deferred outflows of resources and deferred inflows of resources related to OPEB - For the
year ended June 30, 2018, the Board recognized OPEB expense of $11,710,368. At June 30, 2018, the Board reported
deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between expected and actual experience $ - $ 3 95,825
Changes in assumptions - 22,774,069
Net difference between projected and actual
earnings on OPEB plan investments - 7 34
Total $ - $ 23,170,628
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Year ended June 30:
2019 $ (2,574,616)
2020 (2,574,616)
2021 (2,574,616)
2022 (2,574,618)
2023 (2,574,433)
Thereafter (10,297,729)
-110-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
LIBRARY
Plan description
The Library participates in an agent multiple-employer defined benefit healthcare plan (“the Plan”) that covers retired
employees of Queen Anne’s County, the Queen Anne’s County Board of Education, and the Library. A Trust entity was
established in June, 2009 entitled Other Post- Employment Benefit Trust – County Commissioners of Queen Anne’s
County, County Commissioners of Kent County, and Participating Agencies (the “Trust”).
Unrelated agencies and political subdivisions have the right to participate in this Trust and deposit funds for investment
purposes. Accordingly, funds are being held in the Trust on behalf of Kent County, Maryland for the benefit of their plan
participants.
The Trust assets are managed by a Board of Trustees consisting of five members: two representing Queen Anne’s County
Government, two representing Queen Anne’s County Board of Education, and one representing Kent County. In lieu of
separate financial statements for the Trust, Queen Anne’s County presents the Trust entity’s complete financial
statements in their Combined Annual Financial Report.
Benefits provided
The plan reimburses eligible retirees for a portion of healthcare insurance based on years-of-service ranging from $3,000
for 15 years of service to $4,400 for 25 plus years of service. The retiree pays the remaining premium, including the cost
of eligible dependents. Participants must meet the eligibility requirements of the State Retirement and Pension System of
Maryland, which are age 55 with 15 years of service, age 62 with 5 years of service, or 30 years of service (regardless of
age).
Employees covered by benefit terms
The following is a summary of plan membership as of January 1, 2017.
Active 15
Retired 5
Total 20
Contributions
The Library pays retiree healthcare benefits on a pay-as-you-go basis. For the year ended June 30, 2018, the Library
contributed $20,100 for five retirees.
Net OPEB liability
The Library's net OPEB liability was measured as of June 30, 2018, and the total OPEB liability used to calculate the net
OPEB liability was determined by an actuarial valuation January 1, 2017.
Actuarial assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2017, using the following actuarial
assumptions, applied to all periods in the measurement:
Investment return 6%, net of investment expense and including inflation
Healthcare trend 6%, initially, grading down to 4.3% ultimate
Mortality rates are based on the RP 2000 tables with Scale AA applied on a generational basis. RP 2000 disabled tables
are used for those on disability, if applicable.
-111-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
LIBRARY (CONTINUED)
Actuarial assumptions (Continued)
There were no changes in actuarial assumptions since the prior year.
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which
best-estimates of expected future real rates of return (expected returns, net of OPEB plan investment expense and
inflation) are developed for each 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. This is then modified through a Monte-Carlo simulation process, by which a (downward) risk adjustment is
applied to the baseline expected return.
Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset
allocation as of June 30, 2018, and the final investment return assumption, are summarized in the following table:
Long-Term
Target Expected Real
Asset Class Allocation Return - Portfolio
Domestic Equity 48% 5.45%
International Funds 13% 5.95%
Fixed Income – U.S. 33% 2.95%
Global Funds 6% 4.50%
Cash Equivalents 0.75%
Total Weighted Average Real Return 100% 4.63%
Plus Inflation 2.50%
Total Return w/o Adjustment 7.13%
Risk Adjustment -1.13%
Total Expected Return 6.00%
Discount rate
The discount rate used to measure the total OPEB liability is 5.75%. The County’s funding expectations/policy is to
contribute 50% of the actuarially determined contribution in fiscal year 2018, then increase 10% each year until the
actuarial cost is being contributed in full annually. It is expected that benefits will be paid from the trust when a 50%
funding level is reached. Based on this information, it is projected that benefits will be financed on a pay-as-you-go basis
until 2029, then from the trust there forward. Therefore, the expected trust return of 6% is blended with the 20-year AA
bond rate of 3.62%. The blended rate is 5.75%.
Changes in the net OPEB liability
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Contributions - employer $ - $ 20,100 $ ( 20,100)
Service Cost 4 ,463 - 4 ,463
Investment Income 28,762 14,774 13,988
Changes in Assumptions 2 ,509 - 2 ,509
Benefit Payments, including refunds (20,100) (20,100) -
Net change in total OPEB liability 15,634 14,774 860
Net OPEB obligation, beginning of year 497,271 34,661 462,610
Net OPEB obligation, end of year $ 512,905 $ 49,435 $ 463,470
-112-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
LIBRARY (CONTINUED)
Sensitivity of the net OPEB liability to changes in the discount rate
The following presents the net OPEB liability of the Library, as well as what the net OPEB liability would be if it were
calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount
rate:
1% Decrease (4.75%) $ 552,765
Current discount rate (5.75%) $ 463,470
1% Increase (6.75%) $ 384,020
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rate
The following presents the net OPEB liability of the Library, as well as what the net OPEB liability would be if it were
calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage point higher than the current
healthcare trend rate:
1% Decrease (3.3%) $ 370,974
Current discount rate (4.3%) $ 463,470
1% Increase (5.3%) $ 571,880
OPEB expense and deferred inflows of resources related to OPEB
For the year ended June 30, 2018, the Library recognized an OPEB expense of $24,142. At June 30, 2018, the Library
reported deferred outflows and deferred inflows of resources related to the OPEB plan from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between expected and actual experience $ 2,230 $ -
Changes in assumptions - 1,729
Total $ 2,230 $ 1,729
Amounts reported as deferred outflows and deferred inflows of resources related to the OPEB plan will be recognized in
expense over a period ranging from five to nine years as follows:
Year Ended Outflows
June 30 (inflows)
2019 $ (153)
2020 (153)
2021 (153)
2022 (154)
2023 2 79
Thereafter 8 35
Total $ 501
-113-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 15 – DEFICIT EQUITY BALANCES
The following Non-Major Governmental Funds ended the year with deficit balances in unassigned fund balance:
Housing and Community Services Fund
The Housing and Community Services Fund has a negative unassigned fund balance of $6,897 as of June 30, 2018. This
negative balance will clear itself as the balance of outstanding loans receivable in the Housing and Community Services
Fund decreases.
Capital Projects – Fire Company Impact Fees Fund
The Capital Projects – Fire Company Impact Fees Fund has a negative unassigned fund balance of $41,861 as of June 30,
2018. This negative fund balance is the result of an overpayment to a particular fire department, and will decrease over
time as the incoming revenues offset the overpayment.
The following Enterprise Funds ended the year with deficit equity balances:
Bay Bridge Airport Enterprise Fund
The Bay Bridge Airport Enterprise Fund has a deficit balance in unrestricted net position of $1,591,350 as of June 30,
2018.
Golf Course Enterprise Fund
The Golf Course Enterprise Fund has a deficit balance in unrestricted net position of $752,076 as of June 30, 2018.
The County Commissioners established the guideline that the Enterprise Funds should be self-supporting, to the extent
possible. Therefore, a variety of measures are being evaluated in order to attempt the goal of balancing the Enterprise
Funds.
NOTE 16 - COMMITMENTS AND CONTINGENCIES
PRIMARY GOVERNMENT
Grants - The County and its component units are recipients of various federal and state grant and/or loan programs, which
are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are
subject to audit and adjustment by these grantor agencies. If the County has not complied with the rules and regulations
governing the programs, refunds of money received may be required and the collectability of any related receivable as of
June 30, 2018 may be impaired. The County’s management believes that there are no significant contingent liabilities
that must be recorded relating to compliance with the rules and regulations governing these programs. No funds were
required to be returned in fiscal year 2018.
-114-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 16 - COMMITMENTS AND CONTINGENCIES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Further, certain grants for capital projects, such as various park projects funded by the State, must be used for the
intended purpose of the grant. If, at any time during the useful lives of these projects, the facilities cease to operate in
their intended capacity, the County may be required to reimburse the granting agency that portion of the grant or note that
is equal to the percentage of useful life remaining. The County’s Management believes that no such grant
reimbursements will be needed.
In fiscal year 2010, the County’s Department of Housing and Community Services received a grant of $350,000 from the
Maryland Department of Housing and Community Development. This Maryland Neighborhood Conservation Initiative
(NCI) Grant provided funding to be used for the acquisition and purchase of foreclosed properties for resale to qualifying
homebuyers, as well as the issuance of zero percent deferred payment loans to eligible critical service workers. Per the
terms of the agreement, the grantee may reuse funds for these same activities until June 30, 2013. Funds returned to the
County from program participants after June 30, 2013 must be returned to the state. Therefore, this grant has been
recorded as a pass-through grant, with the County contingently liable for the return of these funds to the state at some
point in time after June 30, 2013. During Fiscal Year 2014, the County identified $69,569 in funds that were required to
be returned to the grantor per grant provisions. No funds were required to be returned in fiscal years 2015, 2016, 2017 or
2018.
In accordance with the provisions of GASB Statement 54, Fund Balance Reporting and Governmental Fund Type
Definitions, the County has committed certain fund balances for future construction projects. In the General Capital
Projects Fund, a total of $2,571,804 has been committed, including $855,793 for Economic Development, $661,378 for
rubble surcharge, and $1,054,633 for site improvements pursuant to agreements with local developers. In the Roads
Capital Projects Fund, $615,450 has been contributed by developers and is committed to fund infrastructure
improvements.
Income Tax Contingency - On May 18, 2015, the Supreme Court of the United States decided against the State of
Maryland in Comptroller of the Treasury of Maryland v. Wynne Et Ux. Under state law, residents who pay income tax to
another state for income earned in that other state are allowed a credit against their Maryland state income tax but not
against the so-called piggy-back tax of the county or municipality where they reside. Plaintiffs argued that not granting a
credit against the local income tax is a violation of the U.S. Constitution. By a 5 to 4 vote, the Supreme Court found for
the plaintiffs holding generally that the state law violates what is known as the Dormant Commerce Clause. This decision
means that Maryland counties, including Queen Anne’s County, need to reserve funds against refund claims by certain
taxpayers (particularly S corporation shareholders) dating back to Tax Year 2007. The County estimates that it needs to
reserve $801,900 against these potential claims. The County plans to use $801,900 in existing reserves to finance such
claims. The County estimates that future loss of revenues as a result of the Wynne Case will be absorbed through the
normal budgeting process.
Based on the findings, Queen Anne’s County reduced the receivable from the State for income taxes and the offsetting
deferred inflows by the estimated fiscal impact for the County for tax years going back to 2009 which totaled $801,900
including interest. The adjustment does not change the total fund balance for the General Fund. Since the County already
received the money in income taxes in prior years, the amount of anticipated liability for the Wynne Case impact on the
County is assigned in the General Fund. When the State begins taking the funds back, the County will release the amount
from the assigned fund balance. The amount of anticipated liability is based on assessments provided by the Maryland
Comptroller’s Office and the County believes these figures to be within reason.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 16 - COMMITMENTS AND CONTINGENCIES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Under Maryland law, taxpayers are generally eligible for interest on certain tax refunds calculated at an annual rate of
interest equal to the greater of (i) three percentage points above the average prime rate of interest or (ii) 13%. In 2014,
the Maryland General Assembly adopted legislation that set the annual interest rate for an income tax refund that is a
result of the final decision under the Wynne case to a percent equal to the average prime rate of interest. This legislation
substantially lowers the interest rate on tax refunds due as a result of the Wynne decision. Further, the legislation was
intended to be effective retroactively. On November 13, 2015, lawyers for Michael J. Holzheid filed a class action
complaint, Michael J. Holzheid v. Comptroller of the Treasury of Maryland, et al, in the Circuit Court for Baltimore City
challenging the state legislation. Other taxpayers may also file claims or appeals challenging the state legislation. If such
claims or appeals are successful, the estimated amount of interest on refunds owed by the County would increase.
NOTE 17 – JOINT VENTURE
In 1991, the County Commissioners, in conjunction with Talbot, Caroline, and Kent Counties, entered into a regional
partnership known as the Midshore Regional Landfill Joint Venture. This venture was formed to provide a long-term,
solid waste management solution for the four-county area. As part of the agreement, each of the four Counties agreed to
host a solid waste facility for a twenty year period, giving the venture a total duration of eighty years. In 1991, the
Midshore Regional Landfill opened in Talbot County and served the waste management needs of the four-County area
for twenty years. This facility, owned and operated by the Maryland Environmental Service (MES), closed on December
31, 2010. The second Midshore facility, Midshore II, opened in Caroline County in January 2011 and is fully
operational. After the facility in Caroline County reaches capacity, another landfill will be constructed in Queen Anne's
County, with Kent County to follow in turn. Each County is required to, and has, set aside sufficient land to construct a
landfill within their borders. The agreement expires when the last of the four landfills is closed.
Queen Anne’s County has a 35.69% financial interest in the Midshore Regional Landfill. In the event that expenditures
exceed revenues, the County is obligated to cover the deficiency in proportion to its financial interest; however, to date
additional funding from the County has not been required nor does management anticipate it.
During fiscal year 2011, the landfill located in Talbot County, Midshore I, was closed. As of June 30, 2018, total closure
and post closure costs for Midshore I was estimated at approximately $1.7 million. Midshore II, located in Caroline
County, was 20.16% filled. Closure and post closure costs for Midshore II are estimated at approximately $16.9 million.
Therefore, the total closure and post closure costs for both landfills are $18.6 million, with approximately $6.6 million
attributable to Queen Anne’s County. These costs are paid from tipping fees of acceptable waste delivered by or for the
account of the counties. It is currently expected that sufficient funds will be available from landfill revenues to pay future
closure and post closure costs. MES has accrued and reported a long-term liability of $5.1 million as of June 30, 2018,
determined by the estimated useful life of the landfill.
Similar to the post closure costs, each of the participating Counties is contingently liable for the debt related to the new
facility, Midshore II. Midshore II was funded with project revenue bonds totaling $18.7 million. As of June 30, 2018,
$6.7 million is attributable to Queen Anne’s County in the event of a default.
Each County is required to place its municipal waste in the landfill. The facility is also available to commercial waste
disposal firms at the same price per ton as charged to the County governments. Queen Anne's County paid $323,818 in
tipping fees to the facility during fiscal 2018.
MES has satisfied its financial assurance requirements based upon the local government financial ratio tests of the project
participants as of June 30, 2018. MES expects to satisfy these requirements as of June 30, 2019 using the same criteria.
Due to inflation and changes in technology, laws, and regulations, estimated closure and post closure care costs may
change in the future. Financial Statements of the Landfill can be obtained from MES located at 259 Najoles Road,
Millersville, MD 21108.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 18 – POLLUTION REMEDIATION OBLIGATIONS
During fiscal year 2009, the County implemented the provisions of Governmental Accounting Standards Board (GASB)
Statement 49, Accounting and Financial Reporting for Pollution Remediation Obligations.
During a prior fiscal year, 2003, the County agreed to a voluntary Methyl Tertiary Butyl Ether (MTBE) testing program
for underground fuel tanks located at the County’s Department of Public Works’ fuel depot. This testing program was
and still is approved by the Maryland Department of Environment (MDE).
Since the testing program began in 2003, the County incurred a total of $425 thousand in expenses, including $14
thousand in fiscal year 2018, to comply with the provisions of the program. Costs covered remediation work and
consulting fees; the latter for testing, studies, and monitoring. Remediation efforts included demolition and removal of
the existing fuel depot at the Public Works Centreville Shop; remediation of the soils via excavation; offsite controlled
disposal and backfill; installation of monitoring wells; in situ chemical oxidation and dual phase extraction; attorney’s
fees and miscellaneous environmental consulting services.
In May 2010, MDE requested the County devise a Corrective Action Plan (CAP) to address contamination concerns at
the fuel depot site. In August 2010, MDE approved the County’s CAP work which included the installation of additional
monitoring wells and one year of monitoring, sampling, testing and furnishing of those reports to MDE.
In November 2011, due to uneven results from the prior year’s monitoring tests, MDE requested the County submit a
technical plan to conduct an initial site injection, a measure which included the application of decontaminating chemicals
to the soil in an effort to determine the dosage rate and the corresponding reduction in pollutants that could be achieved.
Based on the plan approved by MDE, the County awarded a contract for the initial injection, and performed the
remediation work in the summer of 2012. Since the results of this initial injection did not achieve the desired effects, a
follow up plan is underway which includes continued quarterly monitoring, sampling, and testing. Also, communications
are underway to seek closure of this site from MDE.
On November 6, 2013, during routine quarterly monitoring, Liquid Phase Hydrocarbon (LPH) was encountered in only
MW-2A. MDE was properly notified and with their concurrence, the LPH was extracted from the well and disposed of
legally. The County was subsequently directed by MDE to perform weekly gauging of MW-2A and others on the site to
determine if the rebound would exceed 0.50 feet of LPW and if any of the other monitoring wells (MW) had LPW
present. LPH was not detected in any other MW and rebound did not approach 0.50 of LPW in MW-2A. Pursuant to an
April 1, 2014 letter from MDE, the County was directed to perform an Enhanced Fluid Recovery (EFR) in MW-2A and
follow-up with subsequent well gauging and monitoring because of the continued presence of LPH in MW-2A. This
procedure was conducted in compliance with MDE on April 23, 2014.
In December of 2014, a leak was discovered at the 10,000 gallon fuel oil UST for the office building. MDE required the
removal of the tank and mitigation of the contaminated soils and ground water. The tank has been replaced with a
compliant above ground 1,500 gallon fuel oil storage tank. This work was completed, including compliant disposal of all
soils by May 2015. MDE subsequently directed the County to install two additional monitoring wells and to abandon the
former injection wells on-site.
The County and MDE met in February 2018 to review project data and to discuss details for the project closeout. The
presence of LPH in MW-2A continues to be monitored, fluctuates in depth, and currently appears to be recoverable only
in minimal amounts. The County is to continue with the approved MDE monitoring program which includes: weekly
sampling of MW2A and monthly sampling of all other wells. These samples are collected by County staff. In addition,
Chesapeake Geosciences will collect samples, test and provide reports in November 2018 and May 2019 at a cost of
$12,065. The County will continue discussions with MDE regarding the project closeout in Spring 2019.
The estimated costs over the next year are not material, and thus no liability has been recorded at this time. None of
these outlays met the requirements for capitalization noted in GASB Statement 49 and they were not capitalized.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 19 – PRIOR PERIOD RESTATEMENT
During fiscal year 2018, the County, the Board of Education, and the Library implemented Governmental Accounting
Standards Board’s Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than
Pensions, and in accordance, has applied its effects retroactively. The statement’s objective is to improve the accounting
and financial reporting for postemployment benefits other than pensions (OPEB) as well as to improve the information
provided by employers about financial support for OPEB (see Note 14).
The following table is a summary of the effects of these changes on net position as of June 30, 2017.
PRIMARY GOVERNMENT
Governmental Business-Type
Activities Activities Total
Net Net Net
Position Position Position
June 30, 2017, as previously reported $ 66,154,436 $ 9 1,980,214 $ 1 58,134,650
Adjustment to net OPEB liability (3,357,646) (630,973) (3,988,619)
June 30, 2017, as restated $ 62,796,790 $ 9 1,349,241 $ 1 54,146,031
COMPONENT UNITS – BOARD OF EDUCATION AND LIBRARY
To implement Governmental Accounting Standards Board’s Statement No. 75, the beginning net position balances for
governmental activities for the Queen Anne’s County Board of Education and the Library have been adjusted.
The Board of Education’s beginning net position balance for governmental activities of $105,876,751 has been decreased
by $128,614,617 to a deficit of $22,737,866.
The Library’s beginning net position balance for governmental activities of $870,992 has been increased by $816,908 to
$1,687,900.
See the financial statements for the Board of Education and the Library for further information.
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Required Supplementary Information
-119-

QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2018
MARYLAND STATE RETIREMENT AND PENSIONS SYSTEMS
SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (as of measurement
date)
Plan's
Fidcuciary
Employer's Employer's Proportionate Net Position
Proportion Proportion Share Plan's as a
(Percentage) Share as a Total Plan's Percentage
of the of the Employer's Percentage Fiduciary Total of Total
Measurement Collective Collective Covered of Covered Net Pension Pension
Date NPL NPL Payroll Payroll Position Liability Liability
A B C (B / C) D E (D / E)
June 30, 2014 0.1038567% $ 18,431,162 $ 1 9,929,409 92% $ 45,339,988,000 $ 63,086,719,000 72%
June 30, 2015 0.1189567% 24,721,248 21,231,535 116% 45,789,840,000 66,571,552,000 69%
June 30, 2016 0.1271511% 30,000,070 23,160,758 130% 45,365,927,000 68,959,954,000 66%
June 30, 2017 0.1232988% 26,661,766 24,681,599 108% 48,987,184,000 70,610,885,000 69%
SCHEDULE OF CONTRIBUTIONS (as of fiscal year end)
Actual
Contribution
as a
Contractually Contribution Employer's Percentage
Fiscal Required Actual Deficiency Covered of Covered
Year Contribution Contribution (Excess) Payroll Payroll
A B (A - B) C (B / C)
2015 $ 2,507,287 $ 2,507,287 $ - $ 21,231,535 12%
2016 2 ,477,009 2,477,009 - 23,160,758 11%
2017 2 ,509,551 2,509,551 - 24,681,599 10%
2018 2 ,759,698 2,759,698 - 26,088,825 11%
Both schedules above are presented to illustrate the requirements to show information for 10 years. However, until full
10-year trends are compiled, pension plans should present information for those years for which the information is
available.
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QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2018
MARYLAND STATE RETIREMENT AND PENSIONS SYSTEMS (CONTINUED)
ACTUARIAL ASSUMPTIONS – PENSION PLAN
Changes in Benefit Terms
There were no benefit changes during the year.
Changes in Assumptions
Adjustments to the roll-forward liabilities were made to reflect the following assumptions change in the 2017 valuation:
Inflation assumptions changed from 2.90% to 2.65%
Method and Assumptions used in Calculations of Actuarially Determined Contributions
Actuarial Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period In the 2016 actuarial valuation: 25-year closed schedule ending June 30, 2039; 22
years remaining. In the 2017 actuarial valuation: 25-year closed schedule ending June
30, 2039; 21 years remaining.
Asset Valuation Model Five-year smoothed market (max. 120% and min 80% of the market value)
Inflation In the 2016 actuarial valuation, 2.90% general, 3.20% wage. In the 2017 actuarial
valuation, 2.65% general, 3.15% wage.
Salary Increases In the 2016 actuarial valuation, 3.20% to 9.20% including inflation. In the 2017
actuarial valuation, 3.15% to 9.15% including inflation.
Investment Rate of Return In the 2016 actuarial valuation, 7.55%. In the 2017 actuarial valuation, 7.50%.
Retirement Age Experienced-based table of rates that are specific to the type of eligibility condition.
Last updated for the 2015 valuation pursuant to the 2015 Experience Study of the
period July 1, 2010 to June 30, 2014.
Mortality RP-2014 Mortality Tables with generational mortality projections using scale MP-
2014 2-dimensional mortality improvement scale.
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QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2018
OTHER POST-EMPLOYMENT BENEFITS TRUST
The following required supplementary information relates to the OPEB plan described in Note 14. This information is
intended to help users assess the system’s funding status on a going-concern basis; assess progress made in accumulating
assets to pay benefits when due; and make comparisons among employers.
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY
2017 2018
Total OPEB Liability ("TOL")
Service cost $ 1,097,813 $ 1,130,747
Interest 2,764,491 2,985,530
Changes in benefit terms - -
Difference between expected and actual experience - -
Changes in assumptions - 265,899
Benefit payments ( 1,291,027) ( 1,498,005)
Net change in total OPEB liability 2,571,277 2,884,171
Total OPEB liability - beginning of year 48,695,013 51,266,290
Total OPEB liability - end of year $ 51,266,290 $ 54,150,461
Plan Fiduciary Net Position ("PFNP")
Contributions - employer $ 2,223,474 $ 2,731,447
Contributions - member - -
Net investment income 75,175 207,932
Benefit payments ( 1,291,027) ( 1,498,005)
Admin expenses - ( 2,452)
Other - -
Net change in plan fiduciary net position 1,007,622 1,438,922
Plan fiduciary net position - beginning of year 2,804,433 3,812,055
Plan fiduciary net position - end of year $ 3,812,055 $ 5,250,977
Net OPEB liability ("NOL") - beginning of year $ 45,890,580 $ 47,454,235
Net OPEB liability - end of year $ 47,454,235 $ 48,899,484
PFNP as a % of TOL 7.4% 9.7%
Covered employee payroll $ 21,604,888 $ 22,282,543
NOL as a % of covered payroll 219.6% 219.5%
This schedule is presented to illustrate the requirements to show information for 10 years. However, until a full 10-year
trend is available, only those years for which information is available, will be presented.
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QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2018
OTHER POST-EMPLOYMENT BENEFITS TRUST (CONTINUED)
SCHEDULE OF ACTUAL EMPLOYER CONTRIBUTION AS A PERCENTAGE OF COVERED-EMPLOYEE
PAYROLL
Actuarially Contribution
Determined Actual Contribution Covered as a
Fiscal Employer Employer Deficiency / Employee Percent
Year Contribution Contribution (Excess) Payroll of Payroll
2009 $ 5,312,000 $ 1,007,954 $ 4,304,046 $ 2 3,690,163 4.3%
2010 6,410,934 604,221 5,806,713 23,778,696 2.5%
2011 7,256,495 835,792 6,420,703 20,439,972 4.1%
2012 7,806,661 1,508,144 6,298,517 18,903,632 8.0%
2013 9,024,000 1,668,781 7,355,219 17,640,063 9.5%
2014 9,187,000 1,692,951 7,494,049 17,953,154 9.4%
2015 4,004,722 2,066,819 1,937,903 19,064,280 10.8%
2016 4,189,564 2,121,316 2,068,248 20,650,915 10.3%
2017 3,853,839 2,223,474 1,630,365 21,604,888 10.3%
2018 3,969,454 2,731,447 1,238,007 22,282,543 12.3%
ACTUARIAL ASSUMPTIONS – OPEB PLAN
Actuarial assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2017, using the following actuarial
assumptions, applied to all periods included in the measurement:
Investment Return: 6.00%, net of investment expense and including inflation
Healthcare Trend: 6.00% initially, grading down to 4.30% ultimate
Mortality rates are based on the RP 2000 tables with Scale AA applied on a generational basis. RP 2000 Disabled
tables are used for those on disability, if applicable.
Changes in Actuarial assumptions
There were no changes in actuarial assumptions since the prior year, except the change in discount rate due to an
updated fund availability analysis.
Actuarial Methods for Determining Employer Contributions
The same economic and demographic assumptions are used for both funding and financial reporting purposes under
GASB 74/75.
The Entry Age method is used for accounting/GASB purposes, therefore all of the actuarial figures within this Report
are based on it. Actuarially Determined Contributions are also based on the Entry Age method, with a closed level
percentage of payroll amortization of the unfunded liability (21 years remaining).
BUDGETARY COMPARISONS FOR THE GENERAL FUND
Required Supplementary Information provides budget-to-actual comparisons for the General Fund. Budgets are adopted
using the same method of accounting as that used for reporting purposes, i.e. according to generally accepted accounting
principles as used in the United States of America (GAAP).
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QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2018
VARIANCE
ORIGINAL FINAL WITH FINAL
BUDGET BUDGET ACTUAL BUDGET
REVENUES
Taxes
Local Property Tax $ 67,425,242 $ 67,668,986 $ 6 7,907,999 $ 239,013
Local Income Tax 49,436,992 51,436,992 5 1,834,189 397,197
Admission and Amusement Taxes 170,000 170,000 1 58,881 (11,119)
Recordation Taxes 4,817,700 5,417,700 5 ,550,291 132,591
Hotel Taxes 535,000 535,000 6 17,293 82,293
County Transfer Taxes 1,936,427 1,936,427 1 ,997,292 60,865
State Shared Taxes 769,614 769,614 7 68,800 (814)
Franchise Fee 470,000 470,000 4 88,334 18,334
Licenses and Permits 630,000 630,000 6 25,285 (4,715)
Intergovernmental 1,815,308 2,217,064 2 ,128,380 (88,684)
Bond Interest Reimbursement - Build America Bond 334,692 334,692 3 34,858 166
Charges for Current Services 2,400,000 2,423,481 2 ,845,264 421,783
Fines and Forfeitures 70,000 70,000 9 5,394 25,394
Investment Income 60,000 376,000 6 39,388 263,388
Donations - 1,500 1 ,801 301
Miscellaneous 672,500 650,119 3 70,402 (279,717)
Total Revenues 131,543,475 135,107,575 1 36,363,851 1,256,276
EXPENDITURES
GENERAL GOVERNMENT
Legislative 462,336 462,336 3 86,585 75,751
Judicial
Circuit Court 574,561 612,852 4 43,182 169,670
Orphan's Court 84,611 84,611 8 1,366 3,245
State's Attorney 1,240,696 1,260,696 1 ,258,251 2,445
County Administrator 197,600 212,600 2 09,409 3,191
Board of Elections 709,746 709,746 6 25,473 84,273
Finance Office 1,221,328 1,221,328 1 ,188,761 32,567
Human Resources 559,574 575,574 5 74,158 1,416
Planning and Zoning 1,974,810 1,976,310 1 ,962,413 13,897
Information Technology 1,498,639 1,498,639 1 ,403,885 94,754
QAC-TV 367,149 367,149 3 58,694 8,455
Legal Services 493,162 493,162 3 46,528 146,634
Total General Government 9,384,212 9,475,003 8 ,838,705 636,298
PUBLIC SAFETY
Sheriff's Office 7,554,119 7,785,332 7 ,213,406 571,926
Volunteer Fire and Rescue Services 3,882,182 3,882,182 3 ,561,487 320,695
Detention Center 4,893,203 4,893,203 4 ,581,340 311,863
Emergency Services 8,611,397 8,836,226 8 ,555,102 281,124
Total Public Safety 24,940,901 25,396,943 2 3,911,335 1,485,608
PARKS AND PUBLIC WORKS
Administration 688,032 688,032 5 53,087 134,945
Solid Waste Disposal 1,780,272 1,780,272 1 ,538,443 241,829
Engineering Division 634,288 774,288 7 69,915 4,373
Roads Division 4,925,867 4,925,867 4 ,187,477 738,390
General Services 2,299,356 2,299,356 2 ,225,003 74,353
Parks 3,881,715 3,881,715 3 ,642,267 239,448
Total Parks and Public Works 14,209,530 14,349,530 1 2,916,192 1,433,338
CONTINUED
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QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
VARIANCE
ORIGINAL FINAL WITH FINAL
BUDGET BUDGET ACTUAL BUDGET
HEALTH, SOCIAL, AND RECREATION
Health Department $ 2,281,707 $ 2,281,707 $ 1 ,971,460 $ 310,247
Social Services 353,003 353,003 3 50,383 2,620
Recreation 674,559 674,559 6 33,019 41,540
Total Health, Social, and Recreation 3,309,269 3,309,269 2 ,954,862 354,407
EDUCATION AND LIBRARY
Board of Education 55,495,261 55,495,261 5 5,495,261 -
Chesapeake College 1,881,950 1,881,950 1 ,881,950 -
Queen Anne's County Free Library 1,750,190 1,765,190 1 ,765,190 -
Total Education and Library 5 9,127,401 5 9,142,401 5 9,142,401 -
CONSERVATION OF NATURAL RESOURCES
Cooperative Extension Service 287,103 288,103 2 87,316 787
Soil Conservation Service 242,363 242,363 2 15,557 26,806
4-H Park 77,500 77,500 7 2,166 5,334
Total Conservation of Natural Resources 606,966 607,966 5 75,039 32,927
ECONOMIC AND COMMUNITY DEVELOPMENT
Economic Development 328,062 328,062 2 58,619 69,443
Tourism 273,856 273,856 2 57,908 15,948
Community Affairs 365,660 365,660 2 92,720 72,940
Total Economic and Community Development 967,578 967,578 8 09,247 158,331
DEBT SERVICE
School Debt Service - Principal 4,591,759 4,591,759 4 ,591,759 -
School Debt Service - Interest 2,287,416 2,287,416 2 ,283,750 3,666
County Debt Service - Principal 2,506,058 2,513,558 2 ,513,353 205
County Debt Service - Interest 2,017,361 2,009,861 1 ,996,803 13,058
Total Debt Service 11,402,594 11,402,594 1 1,385,665 16,929
INTERGOVERNMENTAL
Aid to Municipalities 195,535 195,535 1 65,621 29,914
SDAT Costs from State 336,686 336,686 3 18,642 18,044
Total Intergovernmental 532,221 532,221 4 84,263 47,958
CONTINUED
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QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
VARIANCE
ORIGINAL FINAL WITH FINAL
BUDGET BUDGET ACTUAL BUDGET
MISCELLANEOUS
Aid to Other Agencies $ 168,757 $ 241,280 $ 2 40,198 $ 1,082
Insurance & Benefits 2,069,776 2,269,776 2 ,263,750 6,026
Transfer to OPEB Fund 1,233,442 1,233,442 1 ,233,442 -
Contingencies 951,180 551,180 3 41,448 209,732
Salary Lapse (902,165) ( 902,165) - (902,165)
Miscellaneous Non-Departmental 1,140,688 1,060,688 7 85,467 275,221
Total Miscellaneous 4,661,678 4,454,201 4 ,864,305 (410,104)
Total Expenditures 129,142,350 129,637,706 1 25,882,014 3,755,692
Excess of Revenues Over Expenditures 2,401,125 5,469,869 1 0,481,837 5,011,968
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals 7,500 7,500 4 1,547 34,047
Insurance Proceeds - - 3 5,175 35,175
Transfers In From:
Impact Fees - School 1,050,000 1,050,000 - (1,050,000)
Total Transfers In 1,050,000 1,050,000 - (1,050,000)
Transfers Out To:
General Capital Projects Fund 1,331,165 4,021,165 4 ,021,165 -
Roads Capital Projects Fund - 300,000 3 00,000 -
Department of Aging 1,709,332 1,708,894 1 ,368,087 340,807
Department of Housing and Community Services 788,960 788,960 6 99,567 89,393
Community Partnerships 414,762 445,332 4 22,226 23,106
Impact Fees - Fire Companies/Contingencies 90,000 116,744 1 16,744 -
Airport Enterprise Fund 84,202 84,202 7 3,284 10,918
Golf Course Enterprise Fund 240,204 240,204 1 12,281 127,923
Total Transfers Out 4,658,625 7,705,501 7 ,113,354 592,147
Total Other Financing (Uses) (3,601,125) ( 6,648,001) (7,036,632) (388,631)
Net Increase (Decrease) in Fund Balance $ (1,200,000) $ ( 1,178,132) 3 ,445,205 $ 4,623,337
Fund Balance, July 1 2 6,210,260
Fund Balance, June 30 $ 2 9,655,465
-126-

-127-

Combining and Individual Fund Statements and Schedules
The Combining and Individual Fund Statements and Schedules provide detailed information concerning the
financial position, results of operations, and budgetary comparisons for the non-major funds, capital
projects, and fiduciary funds.
-128-

Non-Major Governmental Funds
Non-Major Governmental Funds are used to account for the proceeds of specific revenue sources (other
than capital projects and debt service funds) that are legally restricted to expenditures for specific purposes.
-129-

NON-MAJOR GOVERNMENTAL FUNDS
Non-major governmental funds are special revenue funds, unless otherwise noted:
Department of Aging – This fund accounts for activities funded primarily by grants to provide services for
the elderly and is included in the social services function.
Housing and Community Services – This fund accounts for activities funded mostly by grants and
revolving loan funds that support housing rehabilitation and home-ownership and is included in the
economic and community development function.
Grants Fund – This fund accounts for activities funded by grants and is included in various governmental
functions, depending on the grant.
Revolving Loan Fund – This fund accounts for activities funded by community donations and grants to
promote and provide economic development loans to local businesses and is included in the economic and
community development function.
Economic Development Incentive Fund – This fund accounts for activities funded with a portion of
recordation taxes that support economic development in the County by attracting and investing in new and
existing businesses and is included in the economic and community development function.
BRIDGE (Business Reinvestment and Infrastructure Development Grant Enterprise) Fund – This
fund accounts for activities funded with a portion of recordation taxes and provides new commercial
businesses funding for capital and infrastructure improvements. The BRIDGE Fund is included in the
economic and community development function.
Community Partnerships for Children – This fund accounts for activities funded by grants allocated to
the County that provide services for children and families and is included in the social services function.
Critical Areas – This fund accounts for activities funded by payments in lieu of performance bonds that
support efforts to mitigate and preserve critical areas along the shoreline of tidal waters within the County
and is included in the conservation of natural resources function.
Law Library – This fund accounts for activities funded by court fees, fines, and contributions from local
attorneys to update legal reference materials housed in the courthouse and is included in the general
government function.
Sheriff’s Drug Task Force – This fund accounts for activities funded by drug-related forfeitures that
support drug interdiction efforts by a multi-faceted task force and is included in the public safety function.
Inmate Welfare Fund – This fund accounts for activities funded by profits earned from Detention Center
inmate-related services that promote the welfare of the inmates and is included in the public safety
function.
Agricultural Transfer Tax – This fund accounts for activities funded primarily by the Agricultural
Transfer Tax to purchase agricultural easements that preclude development and is included in the
conservation of natural resources function.
Rural Legacy – This fund accounts for activities funded primarily by Maryland’s Rural Legacy Program to
purchase easements that preclude development and is included in the conservation of natural resources
function.
-130-

Purchase of Development Rights – This fund accounts for activities funded by Queen Anne’s County to
acquire easements to restrict the use of agricultural land and woodland and is included in the conservation
of natural resources function.
Dredging Special Assessments – This fund accounts for activities funded by special assessment funds
collected to repay loans for specific dredging and erosion projects that benefited Price’s Creek, Grove
Creek, and Narrows Pointe and is included in the conservation of natural resources function.
Kent Narrows – This fund accounts for activities funded by tax revenues to improve the Kent Narrows
area and is included in the economic and community development function.
Capital Projects – School Impact Fees – This fund accounts for financial resources generated by new
residential construction and used for the construction of public school facilities or payment of school debt
relating to such construction.
Capital Projects – Fire Company Impact Fees – This fund accounts for activities funded by impact fees
specifically earmarked to enhance local volunteer fire company preparedness resulting from new
construction and is included in the public safety function.
Capital Projects – Parks and Recreation Impact Fees – This fund accounts for activities funded by
impact fees specifically earmarked to enhance parks and recreation and is included in the parks and
recreation function.
-131-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
HOUSING AND ECONOMIC
DEPARTMENT COMMUNITY GRANTS REVOLVING DEVELOPMENT BRIDGE
OF AGING SERVICES FUND LOAN FUND INCENTIVE FUND
ASSETS
Cash and Cash Equivalents $ 83,173 $ 2 ,224,004 $ - $ 4 73,111 $ 3 67,541 $ 5 88,880
Receivables
Accounts Receivable (Net) - 8,635 - 10,952 - -
Loans Receivable - 5 ,307,490 - 82,719 - -
Special Assessments (Net) - - - - - -
Due from Other Governments 257,531 63,932 40,116 - - -
Total Assets $ 3 40,704 $ 7 ,604,061 $ 40,116 $ 5 66,782 $ 3 67,541 $ 5 88,880
LIABILITIES
Accrued Liabilities $ 1 42,948 $ 50,414 $ - $ - $ 1 1,410 $ -
Due to Other Funds - - 40,116 - - -
Due to Other Governmental Agencies - 3,136 - - - -
Unearned Revenue - - - - - -
Total Liabilities 142,948 53,550 40,116 - 1 1,410 -
DEFERRED INFLOWS OF RESOURCES
Unavailable Benefit Assessments - - - - - -
Unavailable Fees - - - - - -
Total Deferred Inflows - - - - - -
Total Liabilities and Deferred Inflows 142,948 53,550 40,116 - 1 1,410 -
FUND BALANCES
Nonspendable - 5 ,307,490 - 93,671 - -
Restricted 3,562 823,356 - - - -
Committed - 1 ,426,562 - 473,111 3 56,131 5 88,880
Assigned 194,194 - - - - -
Unassigned - ( 6,897) - - - -
Total Fund Balances 197,756 7 ,550,511 - 566,782 3 56,131 5 88,880
Total Liabilities, Deferred Inflows and Fund
Balances $ 3 40,704 $ 7 ,604,061 $ 40,116 $ 5 66,782 $ 3 67,541 $ 5 88,880
-132-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
(CONTINUED)
COMMUNITY SHERIFF'S
PARTNERSHIPS DRUG PURCHASE OF
FOR CRITICAL LAW TASK INMATE AGRICULTURAL RURAL DEVELOPMENT
CHILDREN AREAS LIBRARY FORCE WELFARE TRANSFER LEGACY RIGHTS
$ 2 44,262 $ 1 91,858 $ 2 63,498 $ 1 87,831 $ 253,461 $ 53,531 $ 3 78,476 $ 550
7,019 - - - 3,447 - - -
- - - - - - - -
- - - - - - - -
569,540 - - - - - - -
$ 8 20,821 $ 1 91,858 $ 2 63,498 $ 1 87,831 $ 256,908 $ 53,531 $ 3 78,476 $ 550
$ 2 94,741 $ - $ 12,599 $ 54,033 $ 9,307 $ 16,405 $ - $ -
- - - - - - - -
314,150 - - - 26,298 - - -
147,338 - - - - - - -
756,229 - 12,599 54,033 35,605 16,405 - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
756,229 - 12,599 54,033 35,605 16,405 - -
- - - - - - - -
- 191,858 - 133,798 221,303 37,126 378,476 -
- - - - - - - 550
64,592 - 250,899 - - - - -
- - - - - - - -
64,592 191,858 250,899 133,798 221,303 37,126 378,476 550
$ 8 20,821 $ 1 91,858 $ 2 63,498 $ 1 87,831 $ 256,908 $ 53,531 $ 3 78,476 $ 550
CONTINUED
-133-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
(CONTINUED)
CAPITAL PROJECTS
DREDGING PARKS AND TOTAL
SPECIAL KENT SCHOOL FIRE COMPANY RECREATION NON-MAJOR
ASSESSMENTS NARROWS IMPACT FEES IMPACT FEES IMPACT FEES GOVERNMENTAL
ASSETS
Cash and Cash Equivalents $ 27,478 $ 1 72,758 $ 7 ,503,225 $ 4 13,499 $ 1 ,253,003 $ 1 4,680,139
Receivables
Accounts Receivable (Net) 94 - - - - 30,147
Loans Receivable - - 801,880 90,413 86,756 6 ,369,258
Special Assessments (Net) 892,420 - - - - 892,420
Due from Other Governments - - - - - 931,119
Total Assets $ 9 19,992 $ 1 72,758 $ 8 ,305,105 $ 5 03,912 $ 1 ,339,759 $ 2 2,903,083
LIABILITIES
Accrued Liabilities $ - $ - $ - $ - $ - $ 5 91,857
Due to Other Funds - - - 41,861 - 81,977
Due to Other Governmental Agencies - - - - - 343,584
Unearned Revenue - - - - - 147,338
Total Liabilities - - - 41,861 - 1 ,164,756
DEFERRED INFLOWS OF RESOURCES
Unavailable Benefit Assessments 892,420 - - - - 892,420
Unavailable Fees - - 801,880 90,413 86,756 979,049
Total Deferred Inflows 892,420 - 801,880 90,413 86,756 1 ,871,469
Total Liabilities and Deferred Inflows 892,420 - 801,880 132,274 86,756 3 ,036,225
FUND BALANCES
Nonspendable - - - - - 5 ,401,161
Restricted 27,572 1 72,758 - - - 1 ,989,809
Committed - - 7 ,503,225 413,499 1 ,253,003 1 2,014,961
Assigned - - - - - 509,685
Unassigned - - - (41,861) - (48,758)
Total Fund Balances 27,572 1 72,758 7 ,503,225 371,638 1 ,253,003 1 9,866,858
Total Liabilities, Deferred Inflows and
Fund Balances $ 9 19,992 $ 1 72,758 $ 8 ,305,105 $ 5 03,912 $ 1 ,339,759 $ 2 2,903,083
-134-

-135-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
HOUSING AND ECONOMIC
DEPARTMENT COMMUNITY GRANTS REVOLVING DEVELOPMENT BRIDGE
OF AGING SERVICES FUND LOAN FUND INCENTIVE FUND
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ -
Recordation Taxes - 172,823 - - - -
State Shared Taxes - - - - - -
Intergovernmental 1 ,060,834 94,832 74,804 - - -
Charges for Current Services 71,131 316,500 - - - -
Fines and Forfeitures - - - - - -
Investment Income 1,983 14,102 - 3,182 - -
Donations 55,834 - - - - -
Miscellaneous 44,695 - - - 14,000 -
Total Revenues 1 ,234,477 598,257 74,804 3,182 14,000 -
EXPENDITURES
Current
General Government - - - - - -
Public Safety - - - - - -
Public Works - - 74,804 - - -
Social Services 2 ,562,809 - - - - -
Conservation of Natural Resources - - - - - -
Economic/Community Development - 552,271 - - 239,386 -
Capital Outlay 27,897 - - - - -
Debt Service
Principal - - - - - -
Total Expenditures 2 ,590,706 552,271 74,804 - 239,386 -
Excess of Revenues Over (Under) Expenditures (1,356,229) 45,986 - 3,182 (225,386) -
OTHER FINANCING SOURCES (USES)
Insurance Proceeds 4,765 - - - - -
Transfers In 1 ,368,087 699,567 - - - -
Transfers Out (13,412) - - - - (1,209,000)
Other Financing Sources (Uses) 1 ,359,440 699,567 - - - (1,209,000)
Net Increase (Decrease) in Fund Balances 3,211 745,553 - 3,182 (225,386) (1,209,000)
Fund Balances, July 1 194,545 6 ,804,958 - 563,600 581,517 1,797,880
Fund Balances, June 30 $ 1 97,756 $ 7 ,550,511 $ - $ 566,782 $ 356,131 $ 588,880
-136-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
COMMUNITY SHERIFF'S
PARTNERSHIPS DRUG PURCHASE OF
FOR CRITICAL LAW TASK INMATE AGRICULTURAL RURAL DEVELOPMENT
CHILDREN AREAS LIBRARY FORCE WELFARE TRANSFER LEGACY RIGHTS
$ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- - - - - 67,877 - -
768,829 - - - - - 1 ,439,284 -
- 11,051 19,204 - 123,134 - - -
- - 36,373 126,459 - - - -
248 - 2,770 2,361 2,649 - 6,919 -
- - - - - - - -
23,491 - - - 12,836 - - -
792,568 11,051 58,347 128,820 138,619 67,877 1 ,446,203 -
- - 2,666 - - - - -
- - - 87,266 137,398 - - -
- - - - - - - -
1 ,215,942 - - - - - - -
- - - - - 300,000 1 ,491,283 -
- - - - - - - -
- - - - - - - -
- - - - - - - -
1 ,215,942 - 2,666 87,266 137,398 300,000 1 ,491,283 -
(423,374) 11,051 55,681 41,554 1,221 (232,123) (45,080) -
- - - - - - - -
422,226 - - - - - - -
- - - - - - - -
422,226 - - - - - - -
(1,148) 11,051 55,681 41,554 1,221 (232,123) (45,080) -
65,740 180,807 195,218 92,244 220,082 269,249 423,556 550
$ 64,592 $ 1 91,858 $ 2 50,899 $ 1 33,798 $ 2 21,303 $ 37,126 $ 3 78,476 $ 550
CONTINUED
-137-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
CAPITAL PROJECTS
DREDGING PARKS AND TOTAL
SPECIAL KENT SCHOOL FIRE COMPANY RECREATION NON-MAJOR
ASSESSMENTS NARROWS IMPACT FEES IMPACT FEES IMPACT FEES GOVERNMENTAL
REVENUES
Taxes
Local Property Tax $ - $ 36,731 $ - $ - $ - $ 36,731
Recordation Taxes - - - - - 172,823
State Shared Taxes - - - - - 67,877
Intergovernmental - - - - - 3 ,438,583
Charges for Current Services 80,113 - 1 ,272,301 297,745 1 74,279 2 ,365,458
Fines and Forfeitures - - - - - 162,832
Investment Income 513 2,509 83,141 3,913 1 3,976 138,266
Donations - - - - - 55,834
Miscellaneous - - - - - 95,022
Total Revenues 80,626 39,240 1 ,355,442 301,658 1 88,255 6 ,533,426
EXPENDITURES
Current
General Government 27,391 - - - - 30,057
Public Safety - - - 228,752 - 453,416
Public Works - - - - - 74,804
Social Services - - - - - 3 ,778,751
Conservation of Natural Resources - - - - - 1 ,791,283
Economic/Community Development - 112,500 - - - 904,157
Capital Outlay - - - - - 27,897
Debt Service
Principal 44,425 - - - - 44,425
Total Expenditures 71,816 112,500 - 228,752 - 7 ,104,790
Excess of Revenues Over (Under) Expenditures 8,810 (73,260) 1 ,355,442 72,906 1 88,255 (571,364)
OTHER FINANCING SOURCES (USES)
Insurance Proceeds - - - - - 4,765
Transfers In - - - 116,744 - 2 ,606,624
Transfers Out - - - - - (1,222,412)
Other Financing Sources (Uses) - - - 116,744 - 1 ,388,977
Net Increase (Decrease) in Fund Balances 8,810 (73,260) 1 ,355,442 189,650 1 88,255 817,613
Fund Balances, July 1 18,762 246,018 6 ,147,783 181,988 1 ,064,748 1 9,049,245
Fund Balances, June 30 $ 27,572 $ 172,758 $ 7 ,503,225 $ 3 71,638 $ 1,253,003 $ 19,866,858
-138-

-139-

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
DEPARTMENT OF AGING HOUSING AND COMMUNITY SERVICES
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - 200,000 200,000 172,823 ( 27,177)
State Shared Taxes - - - - - - - -
Licenses and Permits - - - - - - - -
Intergovernmental 891,390 987,754 1,060,834 73,080 165,622 168,287 94,832 ( 73,455)
Charges for Current Services 73,600 73,600 71,131 ( 2,469) 350,000 350,000 316,500 ( 33,500)
Fines and Forfeitures - - - - - - - -
Investment Income - - 1,983 1,983 20,000 20,000 14,102 ( 5,898)
Donations 35,000 35,000 55,834 20,834 - - - -
Miscellaneous 3,000 3,000 44,695 41,695 - - - -
Total Revenues 1,002,990 1,099,354 1,234,477 135,123 735,622 738,287 598,257 ( 140,030)
EXPENDITURES
Current Operating Expenditures 2,704,822 2,808,248 2,562,809 245,439 1,974,582 1,977,247 552,271 1,424,976
Capital Outlay - - 27,897 ( 27,897) - - - -
Debt Service
Principal - - - - - - - -
Total Expenditures 2,704,822 2,808,248 2,590,706 217,542 1,974,582 1,977,247 552,271 1,424,976
Excess of Revenues Over (Under) Expenditures (1,701,832) ( 1,708,894) ( 1,356,229) 352,665 ( 1,238,960) ( 1,238,960) 45,986 1,284,946
OTHER FINANCING SOURCES (USES)
Insurance Proceeds - - 4,765 4,765 - - - -
Transfers In 1,701,832 1,708,894 1,368,087 (340,807) 788,960 788,960 699,567 ( 89,393)
Transfers Out - ( 13,412) ( 13,412) - - - - -
Total Other Financing Sources (Uses) 1,701,832 1,695,482 1,359,440 (336,042) 788,960 788,960 699,567 ( 89,393)
Net Increase (Decrease) in Fund Balances $ - $ ( 13,412) 3,211 $ 16,623 $ ( 450,000) $ ( 450,000) 745,553 $ 1,195,553
Fund Balances, July 1 194,545 6,804,958
Fund Balances, June 30 $ 197,756 $ 7,550,511
-140-

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
GRANTS FUND ECONOMIC DEVELOPMENT INCENTIVE
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- 1 43,505 7 4,804 (68,701) - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - 1 4,000 1 4,000
- 1 43,505 7 4,804 (68,701) - - 1 4,000 1 4,000
- 1 43,505 7 4,804 6 8,701 - 2 78,496 2 39,386 3 9,110
- - - - - - - -
- - - - - - - -
- 1 43,505 7 4,804 6 8,701 - 2 78,496 2 39,386 3 9,110
- - - - - (278,496) (225,386) 5 3,110
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
$ - $ - - $ - $ - $ (278,496) (225,386) $ 5 3,110
- 5 81,517
$ - $ 3 56,131
CONTINUED
-141-

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
BRIDGE FUND COMMUNITY PARTNERSHIPS FOR CHILDREN
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Licenses and Permits - - - - - - - -
Intergovernmental - - - - 631,658 777,236 768,829 ( 8,407)
Charges for Current Services - - - - - - - -
Fines and Forfeitures - - - - - - - -
Investment Income - - - - - - 248 248
Donations - - - - - - - -
Miscellaneous - - - - 8,496 27,885 23,491 ( 4,394)
Total Revenues - - - - 640,154 805,121 792,568 ( 12,553)
EXPENDITURES
Current Operating Expenditures - - - - 1,054,916 1,250,453 1,215,942 34,511
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Total Expenditures - - - - 1,054,916 1,250,453 1,215,942 34,511
Excess of Revenues Over (Under) Expenditures - - - - ( 414,762) ( 445,332) (423,374) 21,958
OTHER FINANCING SOURCES (USES)
Insurance Proceeds - - - - - - - -
Transfers In - - - - 414,762 445,332 422,226 ( 23,106)
Transfers Out - ( 1,209,000) ( 1,209,000) - - - - -
Total Other Financing Sources (Uses) - ( 1,209,000) ( 1,209,000) - 414,762 445,332 422,226 ( 23,106)
Net Increase (Decrease) in Fund Balances $ - $ ( 1,209,000) ( 1,209,000) $ - $ - $ - ( 1,148) $ ( 1,148)
Fund Balances, July 1 1,797,880 65,740
Fund Balances, June 30 $ 588,880 $ 64,592
-142-

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
LAW LIBRARY INMATE WELFARE
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - 7 ,650 7 ,650 - (7,650)
1 0,000 1 0,000 1 9,204 9 ,204 1 20,000 1 20,000 1 23,134 3 ,134
1 5,500 1 5,500 3 6,373 2 0,873 - - - -
- - 2 ,770 2 ,770 - - 2 ,649 2 ,649
- - - - - - - -
- - - - 2 2,350 2 2,350 1 2,836 (9,514)
2 5,500 2 5,500 5 8,347 3 2,847 1 50,000 1 50,000 1 38,619 (11,381)
2 5,500 2 5,500 2 ,666 2 2,834 1 40,400 1 40,400 1 37,398 3 ,002
- - - - 9 ,600 9 ,600 - 9 ,600
- - - - - - - -
2 5,500 2 5,500 2 ,666 2 2,834 1 50,000 1 50,000 1 37,398 1 2,602
- - 5 5,681 5 5,681 - - 1 ,221 1 ,221
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
$ - $ - 5 5,681 $ 5 5,681 $ - $ - 1 ,221 $ 1 ,221
1 95,218 2 20,082
$ 2 50,899 $ 2 21,303
CONTINUED
-143-

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
AGRICULTURAL TRANSFER RURAL LEGACY
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
State Shared Taxes 40,000 40,000 67,877 27,877 - - - -
Licenses and Permits - - - - - - - -
Intergovernmental - - - - - 1,450,956 1,439,284 ( 11,672)
Charges for Current Services - - - - - - - -
Fines and Forfeitures - - - - - - 6,919 6,919
Investment Income - - - - - - - -
Donations - - - - - - - -
Miscellaneous - - - - - - - -
Total Revenues 40,000 40,000 67,877 27,877 - 1,450,956 1,446,203 ( 4,753)
EXPENDITURES
Current Operating Expenditures 40,000 300,000 300,000 - - 1,507,956 1,491,283 16,673
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Total Expenditures 40,000 300,000 300,000 - - 1,507,956 1,491,283 16,673
Excess of Revenues Over (Under) Expenditures - ( 260,000) ( 232,123) 27,877 - ( 57,000) ( 45,080) 11,920
OTHER FINANCING SOURCES (USES)
Insurance Proceeds - - - - - - - -
Transfers In - - - - - - - -
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) - - - - - - - -
Net Increase (Decrease) in Fund Balances $ - $ ( 260,000) ( 232,123) $ 27,877 $ - $ ( 57,000) ( 45,080) $ 11,920
Fund Balances, July 1 269,249 423,556
Fund Balances, June 30 $ 37,126 $ 378,476
-144-

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
DREDGING SPECIAL ASSESSMENTS KENT NARROWS
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ 3 8,000 $ 3 8,000 $ 3 6,731 $ (1,269)
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
7 1,816 7 1,816 8 0,113 8 ,297 - - - -
- - - - - - - -
- - 5 13 5 13 - - 2 ,509 2 ,509
- - - - - - - -
- - - - - - - -
7 1,816 7 1,816 8 0,626 8 ,810 3 8,000 3 8,000 3 9,240 1 ,240
- - 2 7,391 (27,391) 3 8,000 1 50,500 1 12,500 3 8,000
- - - - - - - -
7 1,816 7 1,816 4 4,425 2 7,391 - - - -
7 1,816 7 1,816 7 1,816 - 3 8,000 1 50,500 1 12,500 3 8,000
- - 8 ,810 8 ,810 - (112,500) (73,260) 3 9,240
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
$ - $ - 8 ,810 $ 8 ,810 $ - $ (112,500) (73,260) $ 3 9,240
1 8,762 2 46,018
$ 2 7,572 $ 1 72,758
CONTINUED
-145-

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
CAPITAL PROJECTS - SCHOOL IMPACT FEES
VARIANCE
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ -
Recordation Taxes - - - -
State Shared Taxes - - - -
Licenses and Permits - - - -
Intergovernmental - - - -
Charges for Current Services 1,050,000 1,050,000 1,272,301 2 22,301
Fines and Forfeitures - - - -
Investment Income - - 83,141 8 3,141
Donations - - - -
Miscellaneous - - - -
Total Revenues 1,050,000 1,050,000 1,355,442 3 05,442
EXPENDITURES
Current Operating Expenditures - - - -
Capital Outlay - - - -
Debt Service
Principal - - - -
Total Expenditures - - - -
Excess of Revenues Over (Under) Expenditures 1,050,000 1,050,000 1,355,442 3 05,442
OTHER FINANCING SOURCES (USES)
Insurance Proceeds - - - -
Transfers In - - - -
Transfers Out (1,050,000) (1,050,000) - 1 ,050,000
Total Other Financing Sources (Uses) (1,050,000) (1,050,000) - 1 ,050,000
Net Increase (Decrease) in Fund Balances $ - $ - 1,355,442 $ 1 ,355,442
Fund Balances, July 1 6,147,783
Fund Balances, June 30 $ 7,503,225
-146-

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
CAPITAL PROJECTS - FIRE COMPANY IMPACT FEES CAPITAL PROJECTS - PARKS & RECREATION IMPACT FEES
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
2 00,000 2 00,000 2 97,745 9 7,745 1 50,000 1 50,000 1 74,279 2 4,279
- - - - - - - -
5 00 5 00 3 ,913 3 ,413 4 00 4 00 1 3,976 1 3,576
- - - - - - - -
- - - - - - - -
2 00,500 2 00,500 3 01,658 1 01,158 1 50,400 1 50,400 1 88,255 3 7,855
2 90,500 2 90,500 2 28,752 6 1,748 - - - -
- - - - - - - -
- - - - - - - -
2 90,500 2 90,500 2 28,752 6 1,748 - - - -
(90,000) (90,000) 7 2,906 1 62,906 1 50,400 1 50,400 1 88,255 3 7,855
- - - - - - - -
9 0,000 1 16,744 1 16,744 - - - - -
- - - - (150,400) (150,400) - 1 50,400
9 0,000 1 16,744 1 16,744 - (150,400) (150,400) - 1 50,400
$ - $ 2 6,744 1 89,650 $ 1 62,906 $ - $ - 1 88,255 $ 1 88,255
1 81,988 1 ,064,748
$ 3 71,638 $ 1 ,253,003
-147-

-148-

NON-MAJOR ENTERPRISE FUNDS
Non-Major Enterprise funds account for activities which are commercial in nature and are primarily or
partially intended to be self-supporting. Each fund sets its rates and service charges at a level sufficient to:
(1) meet all of its operating expenses; (2) provide for depreciation from wear and obsolescence of capital
assets; and (3) to the extent that funds are not borrowed, finance the cost of expansion of physical facilities.
-149-

NON-MAJOR ENTERPRISE FUNDS
Non-major enterprise funds include the following funds:
Blue Heron Golf Course – This fund accounts for operation and maintenance of an 18-hole public golf
course that is owned and operated by the County.
Public Landings and Marinas – This fund accounts for operation, maintenance, and major repairs of
public landings, bulkheads, and public marinas. For a fee, the general public has access to these landings to
launch small craft into the many waterways that surround the County and can also access the marinas for
temporary mooring.
-150-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2018
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
ASSETS COURSE AND MARINAS ENTERPRISE
Current Assets
Equity in Pooled Cash $ - $ 821,127 $ 8 21,127
Accounts Receivable (Net) - 55,747 5 5,747
Due from Other Governments - 12,000 1 2,000
Bond Interest Reimbursement Receivable - Build America Bond - 2,840 2 ,840
Inventories 5,771 - 5 ,771
Total Current Assets 5,771 891,714 8 97,485
Capital Assets 2,955,024 6,346,988 9 ,302,012
Less Accumulated Depreciation (679,465) (1,141,540) (1,821,005)
Total Capital Assets, Net of Depreciation 2,275,559 5,205,448 7 ,481,007
Total Noncurrent Assets 2,275,559 5,205,448 7 ,481,007
Total Assets 2,281,330 6,097,162 8 ,378,492
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflow for Other Post-Employment Benefit Obligation - 1,194 1 ,194
Deferred Outflow for Pension Contributions 16,244 32,770 4 9,014
Deferred Charge on Refunding 11,777 1,322 1 3,099
Total Deferred Outflows of Resources 28,021 35,286 6 3,307
LIABILITIES
Current Liabilities
Accounts Payable 39,027 25,769 6 4,796
Accrued Interest Payable 2,570 9,890 1 2,460
Due to Other Funds 648,061 - 6 48,061
Unearned Revenue 2,270 - 2 ,270
Current Portion of Compensated Absences 8,460 18,641 2 7,101
Current Portion of Bonds/Notes Payable 83,779 52,777 1 36,556
Total Current Liabilities 784,167 107,077 8 91,244
Noncurrent Liabilities
Compensated Absences 5,066 11,161 1 6,227
Other Post-Employment Benefit Obligation - 299,838 2 99,838
Net Pension Liability 60,788 122,177 1 82,965
Bonds/Notes Payable 182,680 734,329 9 17,009
Total Noncurrent Liabilities 248,534 1,167,505 1 ,416,039
Total Liabilities 1,032,701 1,274,582 2 ,307,283
DEFERRED INFLOWS OF RESOURCES
Deferred Inflow for Pension Contributions 7,849 15,713 2 3,562
Total Deferred Inflows of Resources 7,849 15,713 2 3,562
NET POSITION
Net Investment in Capital Assets 2,020,877 4,419,664 6 ,440,541
Unrestricted Amounts (752,076) 422,489 (329,587)
Total Net Position $ 1,268,801 $ 4,842,153 $ 6 ,110,954
-151-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
COURSE AND MARINAS ENTERPRISE
OPERATING REVENUES
Charges for Services $ 3 40,123 $ 451,524 $ 791,647
Intergovernmental - 93,434 93,434
Bond Interest Reimbursement - Build America Bond - 11,395 11,395
Material Sales 4 6,595 - 46,595
Miscellaneous Revenues 2 ,690 13,513 16,203
Total Operating Revenues 3 89,408 569,866 959,274
OPERATING EXPENSES
Cost of Sales and Services
Recreation 4 53,361 367,684 821,045
Other Post-Employment Benefit Contributions - 5,595 5,595
Pension Liability Adjustment 1 ,517 1,845 3,362
Depreciation 4 4,848 120,570 165,418
Total Operating Expenses 4 99,726 495,694 995,420
Operating Gain (Loss) (110,318) 74,172 (36,146)
NON-OPERATING (EXPENSES)
Interest Expense (9,424) (39,272) (48,696)
Total Non-Operating (Expenses) (9,424) (39,272) (48,696)
Income (Loss) Before Contributions and Transfers (119,742) 34,900 (84,842)
Transfers In 1 19,742 - 119,742
Change in Net Position - 34,900 34,900
Total Net Position - Beginning of Year, as Previously Reported 1 ,268,801 4,831,884 6,100,685
Adjustments to Restate Beginning Net Position - (24,631) (24,631)
Total Net Position - Beginning of Year 1 ,268,801 4,807,253 6,076,054
Total Net Position - End of Year $ 1 ,268,801 $ 4,842,153 $ 6,110,954
-152-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
COURSE AND MARINAS ENTERPRISE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 339,876 $ 436,903 $ 776,779
Receipts from other operating revenues 49,285 116,553 1 65,838
Receipts from Build America Bond interest reimbursement - 11,540 1 1,540
Payments to suppliers (348,229) (144,450) (492,679)
Payments to employees and on behalf of employees (135,688) (216,211) (351,899)
Net Cash Provided (Used) by Operating Activities (94,756) 204,335 1 09,579
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds 119,742 - 1 19,742
Receipts from interfund loans 648,061 - 6 48,061
Principal paid on interfund loans (583,544) - (583,544)
Net Cash Provided by Noncapital Financing Activities 184,259 - 1 84,259
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal paid on capital debt (71,176) (50,377) (121,553)
Interest paid on capital debt (12,705) (40,124) (52,829)
Acquisition and Construction of Capital Assets (5,622) (97,544) (103,166)
Net Cash (Used) by Capital and Related Financing Activities (89,503) (188,045) (277,548)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income - - -
Net Cash Provided (Used) by Investing Activities - - -
Net increase in cash and cash equivalents - 16,290 1 6,290
Balances - Beginning of year - 804,837 8 04,837
Balances - End of year $ - $ 821,127 $ 821,127
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (loss) $ (110,318) $ 74,172 $ (36,146)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation 44,848 120,570 1 65,418
Changes in assets and liabilities:
Accounts receivable, net - (14,621) (14,621)
Operating grants receivable - 9,606 9 ,606
Build America Bonds Interest receivable - 145 145
Inventories and Prepaid Expenses (648) - (648)
Vendor accounts payable (30,385) 9,044 (21,341)
Compensated absences 477 ( 2,021) (1,544)
Other Post-Employment Benefit Obligation - 5,595 5 ,595
Net Pension Liability 1,517 1,845 3 ,362
Deferred revenue collected in advance (247) - (247)
Net Cash Provided (Used) by Operating Activities $ (94,756) $ 204,335 $ 109,579
Noncash investing, capital and financing activities:
Donation of capital assets (infrastructure) by developers $ - $ - $ -
-153-

FIDUCIARY FUNDS
Fiduciary funds account for assets held for others, in a trustee or agency capacity, which cannot be used to
support other government programs.
Pension and Other Employee Benefit Trust Funds account for resources that are required to be held in trust
for the members and beneficiaries of defined benefit pension plans, defined contribution plans, other post-
employment benefit plans, or other employee benefit plans. The County’s one Other Post-Employment
Benefit (OPEB) Trust Fund accounts for retiree benefit plans and is reported as part of the Basic Financial
Statements. Additional combining schedules for the OPEB Trust Fund are included in this section.
Agency Funds account for assets held by the County on behalf of individuals, private organizations, or
other governments and/or funds. Additional combining schedules for the County’s Agency Funds are
included in this section.
-154-

OTHER POST-EMPLOYMENT BENEFIT (OPEB) TRUST FUND
The County established a Trust entity, entitled “Other Post-Employment Benefit Trust – County
Commissioners of Queen Anne's County, County Commissioners of Kent County, and Participating
Agencies” (OPEB Trust), to accumulate resources and account for and report retiree benefit plans for the
participating agencies.
Participating agencies in the OPEB Trust Fund are as follows:
Queen Anne's County
Queen Anne's County Board of Education
Queen Anne’s County Library
Kent County
AGENCY FUNDS
Agency funds are as follows:
Tax Ditch – This fund accounts for special taxing district revenues that are used to maintain drainage
ditches located in parts of the County.
Zoning Deposits – This fund accounts for performance deposits required under various sections of the
Zoning Ordinance.
State and Town Tax Collections – This fund accounts for collections received by the County on behalf of
the State of Maryland and incorporated towns located within the County. These taxes are collected by the
County along with County taxes and are then remitted to the proper jurisdiction.
Motor Vehicle Administration Deposits – This fund accounts for funds collected by the County for State
vehicle registration fees.
Escheat – Abandoned Property – This fund accounts for stale-dated County payroll and disbursements
checks that are voided by the County and remitted to the State after three years as abandoned property. In
accordance with State statutes, these funds are available to be claimed by the original payee or they revert
to the State.
-155-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF FIDUCIARY NET POSITION
OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
JUNE 30, 2018
QUEEN ANNE'S TOTAL
COUNTY QUEEN ANNE'S OPEB
QUEEN ANNE'S BOARD OF COUNTY KENT TRUST
COUNTY EDUCATION LIBRARY COUNTY FUND
ASSETS
Cash and Cash Equivalents $ 8 90,048 $ 508,532 $ 3 0,512 $ 1 57,645 $ 1 ,586,737
Investments, at Fair Value
Debt Securities 1 ,227,549 - - - 1 ,227,549
Fixed Income Fund 2 44,636 - - - 2 44,636
Mutual and Global Funds 2 ,109,987 2 ,109,987
International 7 86,330 - - - 7 86,330
Total Investments 4 ,368,502 - - - 4 ,368,502
Total Assets 5 ,258,550 508,532 3 0,512 1 57,645 5 ,955,239
LIABILITIES
Accrued Expenses 7 ,573 - - - 7,573
Due to Other Governments - - - 1 57,645 1 57,645
Total Liabilities 7 ,573 - - 1 57,645 1 65,218
NET POSITION HELD IN TRUST $ 5 ,250,977 $ 508,532 $ 3 0,512 $ - $ 5 ,790,021
-156-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2018
QUEEN ANNE'S TOTAL
COUNTY QUEEN ANNE'S OPEB
QUEEN ANNE'S BOARD OF COUNTY TRUST
COUNTY EDUCATION LIBRARY FUND
ADDITIONS
Contributions
Employers $ 2,731,447 $ 2 ,101,569 $ 2 0,100 $ 4 ,853,116
Members 350,331 7 99,240 - 1 ,149,571
Total Contributions 3,081,778 2 ,900,809 2 0,100 6 ,002,687
Investment Earnings
Interest 117,761 1 ,016 6 1 1 18,838
Net Increase in the Fair Value of Investments 113,050 - - 1 13,050
Total Investment Gain 230,811 1 ,016 6 1 2 31,888
Less Investment Expenses (2,196) - - (2,196)
Net Investment Gain 228,615 1 ,016 6 1 2 29,692
Total Additions 3,310,393 2 ,901,825 2 0,161 6 ,232,379
DEDUCTIONS
Claims Paid 1,848,336 2 ,900,809 2 0,100 4 ,769,245
Administrative Expenses 18,925 - - 1 8,925
Total Deductions 1,867,261 2 ,900,809 2 0,100 4 ,788,170
Change in Assets 1,443,132 1 ,016 6 1 1 ,444,209
NET POSITION HELD IN TRUST
Net Position - Beginning of Year 3,807,845 507,516 30,451 4 ,345,812
Net Position - End of Year $ 5,250,977 $ 508,532 $ 30,512 $ 5 ,790,021
-157-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ASSETS AND LIABILITIES
AGENCY FUNDS
JUNE 30, 2018
STATE MOTOR
TAX & TOWN VEHICLE ESCHEAT - TOTAL
DITCH ZONING TAX ADMIN ABANDONED AGENCY
FUND DEPOSITS COLLECTIONS DEPOSITS PROPERTY FUNDS
ASSETS
Cash and Cash Equivalents $ 1 46,133 $ 376,129 $ 3 3,042 $ - $ 8,232 $ 5 63,536
Total Assets $ 1 46,133 $ 376,129 $ 3 3,042 $ - $ 8,232 $ 5 63,536
LIABILITIES
Accrued Liabilities $ - $ 1,500 $ - $ - $ - $ 1,500
Due to Other Governments - - 3 3,042 - 8,232 41,274
Deposits and Escrows 1 46,133 374,629 - - - 5 20,762
Total Liabilities $ 1 46,133 $ 376,129 $ 3 3,042 $ - $ 8,232 $ 5 63,536
-159-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Cash and Miscellaneous Total
Cash Equivalents Receivables Assets
TAX DITCH FUND
Balance 7-1-17 $ 131,055 $ - $ 131,055
Additions 24,367 - 24,367
Deductions (9,289) - (9,289)
Balance 6-30-18 $ 146,133 $ - $ 146,133
ZONING DEPOSITS
Balance 7-1-17 $ 421,840 $ - $ 421,840
Additions 14,884 - 14,884
Deductions (60,595) - (60,595)
Balance 6-30-18 $ 376,129 $ - $ 376,129
STATE AND TOWN TAX COLLECTIONS
Balance 7-1-17 $ 198,956 $ - $ 198,956
Additions 13,018,584 - 13,018,584
Deductions (13,184,498) - (13,184,498)
Balance 6-30-18 $ 33,042 $ - $ 33,042
MOTOR VEHICLE ADMIN DEPOSITS
Balance 7-1-17 $ 5,864 $ - $ 5,864
Additions 274,315 - 274,315
Deductions (280,179) - (280,179)
Balance 6-30-18 $ - $ - $ -
ESCHEAT - ABANDONED PROPERTY
Balance 7-1-17 $ 11,870 $ - $ 11,870
Additions 8,232 - 8 ,232
Deductions (11,870) - (11,870)
Balance 6-30-18 $ 8,232 $ - $ 8,232
TOTAL AGENCY FUNDS
Balance 7-1-17 $ 769,585 $ - $ 769,585
Additions 13,340,382 - 13,340,382
Deductions (13,546,431) - (13,546,431)
Balance 6-30-18 $ 563,536 $ - $ 563,536
-160-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
Due to Accrued Liabilities
Other and Total
Governments Deposits and Escrows Liabilities
$ 6,235 $ 124,820 $ 131,055
- 24,367 2 4,367
(6,235) (3,054) (9,289)
$ - $ 146,133 $ 146,133
$ - $ 421,840 $ 421,840
- 14,884 1 4,884
- (60,595) (60,595)
$ - $ 376,129 $ 376,129
$ 198,956 $ - $ 198,956
13,018,584 - 13,018,584
( 13,184,498) - (13,184,498)
$ 33,042 $ - $ 3 3,042
$ 5,864 $ - $ 5 ,864
274,315 - 2 74,315
(280,179) - (280,179)
$ - $ - $ -
$ 11,870 $ - $ 1 1,870
8,232 - 8 ,232
(11,870) - (11,870)
$ 8,232 $ - $ 8 ,232
$ 222,925 $ 546,660 $ 769,585
13,301,131 39,251 13,340,382
( 13,482,782) (63,649) (13,546,431)
$ 41,274 $ 522,262 $ 563,536
-161-

Community Partnerships for Children
Community Partnerships for Children is reported as a Non-Major Special Revenue Fund in the County’s
financial statements. In lieu of preparing separate audited financial statements for the Partnership,
additional schedules have been added to the County’s financial statements to meet requirements of the
Partnership’s grantor agencies.
-162-

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
COMBINING BALANCE SHEETS
BY GRANTOR
JUNE 30, 2018 (with Summarized Totals as of June 30, 2017)
Fed/State Total Returned 2017
GOCCP Community Reinvestment 2018 Summarized
Admin GOC Partnerships Fund Total Total
ASSETS
Cash and cash equivalents $ 55,947 $ 179,659 $ 235,606 $ 8,656 $ 244,262 $ 682,038
Accounts receivable - 7,019 7,019 - 7,019 4,930
Due from State governmental agencies 65,000 465,672 530,672 - 530,672 192,461
Due from Federal governmental agencies - 38,868 38,868 - 38,868 -
Total Assets $ 120,947 $ 691,218 $ 812,165 $ 8,656 $ 820,821 $ 879,429
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued expenditures $ 24,942 $ 269,799 $ 294,741 $ - $ 294,741 $ 352,304
Due to State governmental agencies 40,213 273,937 314,150 - 314,150 311,729
Unearned revenue 1,682 145,656 147,338 - 147,338 149,656
Total Liabilities 66,837 689,392 756,229 - 756,229 813,689
FUND BALANCES
Assigned 54,110 1,826 55,936 8,656 64,592 65,740
Total Fund Balances 54,110 1,826 55,936 8,656 64,592 65,740
Total Liabilities and Fund Balances $ 120,947 $ 691,218 $ 812,165 $ 8,656 $ 820,821 $ 879,429
-163-

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BY COMMUNITY PARTNERSHIP AGREEMENTS (CPA) and NON-COMMUNITY PARTNERSHIP AGREEMENTS (NON-CPA)
FOR THE YEAR ENDED JUNE 30, 2018 (with Summarized Totals for the Year Ended June 30, 2017)
Federal/State GOCCP/GOC
Healthy MD
CASA Local Chesapeake Fam/Home Family After School
Administrative Start Care Team Helps Visiting Navigators Opportunity
REVENUES
CPA
Intergovernmental
GOC $ 77,250 $ 6 0,319 $ 25,000 $ 48,387 $ 70,849 $ 42,804 $ -
Subtotal CPA 77,250 6 0,319 25,000 48,387 70,849 42,804 -
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - 1 07,918 - - - - -
GOC - non-CPA - - - - - - -
Other State Grant Funding - - - - 295,376 - -
Investment Income - - - - - - -
Miscellaneous 1,318 - - - - - -
Subtotal Non-CPA 1,318 1 07,918 - - 295,376 - -
Total Revenues 78,568 1 68,237 25,000 48,387 366,225 42,804 -
EXPENDITURES
CPA
Program Contracted Services - 5 8,174 - 37,285 - 37,641 -
Other Expenditures
Salaries 59,995 - 20,625 - - - -
Fringe Benefit Costs 5,005 - 4,375 - - - -
Auditing - - - - 4,941 - -
Consultants 3,425 - - 8,157 - - -
Equipment Rental - - - - - - -
Postage - - - 27 9 61 -
Office Supplies 13 3 08 - - 1,129 56 -
Program Supplies - - - 551 1,475 430 -
Printing and Publishing - - - - 152 143 -
Equipment Operation - - - - 305 536 -
Business Travel 752 1 ,837 - - 431 2,814 -
Meetings & Conferences 560 - - - - 670 -
Training 7,500 - - - 2,546 - -
Advertising - - - 894 - - -
Marketing/Promotions - - - - - - -
Communications - - - 1,473 693 445 -
Insurance - - - - - 8 -
Other Charges - - - - 59,168 - -
Subtotal CPA Expenditures 77,250 6 0,319 25,000 48,387 70,849 42,804 -
Non-CPA
Program Contracted Services - 9 7,666 - - 295,376 - -
Other Expenditures
Salaries 62,745 - - - - - -
Fringe Benefit Costs 38,020 - - - - - -
Auditing 2,988 - - - - - -
Consultants - - - - - - -
Professional Groups - - - - - - -
Equipment Rental 3,250 - - - - - -
Other Contracted Services - - - - - - -
Postage 338 - - - - - -
Office Supplies 1,997 - - - - - -
Program Supplies 9,934 - - - - - -
Printing and Publishing 738 - - - - - -
Business Travel 55 4 0 - - - - -
Meetings & Conferences 2,339 - - - - - -
Training 1,913 7 50 - - - - -
Board's Expenditures 4,644 - - - - - -
Marketing/Promotions - - - - - - -
Communications 1,808 - - - - - -
Other Charges 11,263 9 ,458 - - - - 268,727
Subtotal Non-CPA Expenditures 142,032 1 07,914 - - 295,376 - 268,727
Total Expenditures 219,282 1 68,233 25,000 48,387 366,225 42,804 268,727
Excess of Revenues Over (Under) Expenditures (140,714) 4 - - - - (268,727)
OTHER FINANCING SOURCES
Transfers In for:
Program Contracted Services 140,714 - - - - - 268,727
Net Increase (Decrease) in Fund Balances $ - $ 4 $ - $ - $ - $ - $ -
Fund Balances, July 1
Fund Balances, June 30
-164-

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BY COMMUNITY PARTNERSHIP AGREEMENTS (CPA) and NON-COMMUNITY PARTNERSHIP AGREEMENTS (NON-CPA)
FOR THE YEAR ENDED JUNE 30, 2018 (with Summarized Totals for the Year Ended June 30, 2017)
(CONTINUED)
Federal/State GOCCP/GOC State Federal
GOCCP/GOC State GOC GOCCP GOCCP
Character Operating Fund All Programs CPA Non-CPA Non-CPA Youth
Counts Total Subtotal Subtotal Subtotal Subtotal Strategies
$ 40,926 $ 288,285 $ 365,535 $ 3 65,535 $ - $ - $ -
40,926 288,285 365,535 3 65,535 - - -
- 107,918 107,918 - - - 1 07,918
- - - - - - -
- 295,376 295,376 - - - -
- - - - - - -
21,173 21,173 22,491 - - - -
21,173 424,467 425,785 - - - 1 07,918
62,099 712,752 791,320 3 65,535 - - 1 07,918
- 133,100 133,100 1 33,100 - - -
25,360 45,985 105,980 1 05,980 - - -
3,000 7,375 12,380 1 2,380 - - -
- 4,941 4,941 4 ,941 - - -
- 8,157 11,582 1 1,582 - - -
375 375 375 3 75 - - -
- 97 97 9 7 - - -
491 1,984 1,997 1 ,997 - - -
1,335 3,791 3,791 3 ,791 - - -
- 295 295 2 95 - - -
168 1,009 1,009 1 ,009 - - -
744 5,826 6,578 6 ,578 - - -
3,967 4,637 5,197 5 ,197 - - -
2,182 4,728 12,228 1 2,228 - - -
- 894 894 8 94 - - -
3,304 3,304 3,304 3 ,304 - - -
- 2,611 2,611 2 ,611 - - -
- 8 8 8 - - -
- 59,168 59,168 5 9,168 - - -
40,926 288,285 365,535 3 65,535 - - -
- 393,042 393,042 - - - 9 7,666
24,630 24,630 87,375 - - - -
8,750 8,750 46,770 - - - -
- - 2,988 - - - -
- - - - - - -
- - - - - - -
- - 3,250 - - - -
512 512 512 - - - -
- - 338 - - - -
66 66 2,063 - - - -
- - 9,934 - - - -
- - 738 - - - -
- 40 95 - - - 4 0
- - 2,339 - - - -
- 750 2,663 - - - 7 50
- - 4,644 - - - -
- - - - - - -
- - 1,808 - - - -
- 278,185 289,448 - - - 9 ,458
33,958 705,975 848,007 - - - 1 07,914
74,884 994,260 1,213,542 3 65,535 - - 1 07,914
( 12,785) ( 281,508) (422,222) - - - 4
12,785 281,512 422,226 - - - -
$ - $ 4 4 - - - 4
55,932 6 06,662 (5,612) 3,491 (25,478)
$ 55,936 $ 6 06,662 $ (5,612) $ 3,491 $ (25,474)
CONTINUED
-165-

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BY COMMUNITY PARTNERSHIP AGREEMENTS (CPA) and NON-COMMUNITY PARTNERSHIP AGREEMENTS (NON-CPA)
FOR THE YEAR ENDED JUNE 30, 2018 (with Summarized Totals for the Year Ended June 30, 2017)
(CONTINUED)
Total
Other Community Returned 2017
Non-CPA Partnerships Reinvestment 2018 Summarized
State Grants Other Operating Funds Fund Total Total
REVENUES
CPA
Intergovernmental
GOC $ - $ - $ 365,535 $ - $ 365,535 $ 331,486
Subtotal CPA - - 365,535 - 365,535 331,486
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - - 107,918 - 107,918 22,233
GOC - non-CPA - - - - - 49,279
Other State Grant Funding 295,376 - 295,376 - 295,376 295,269
Investment Income - - - 248 248 212
Miscellaneous - 22,491 22,491 1,000 23,491 30,948
Subtotal Non-CPA 295,376 22,491 425,785 1,248 427,033 397,941
Total Revenues 295,376 22,491 791,320 1,248 792,568 729,427
EXPENDITURES
CPA
Program Contracted Services - - 133,100 - 133,100 120,906
Other Expenditures
Salaries - - 105,980 - 105,980 88,355
Fringe Benefit Costs - - 12,380 - 12,380 5,005
Auditing - - 4,941 - 4,941 -
Consultants - - 11,582 - 11,582 -
Equipment Rental - - 375 - 375 -
Postage - - 97 - 97 -
Office Supplies - - 1,997 - 1,997 -
Program Supplies - - 3,791 - 3,791 -
Printing and Publishing - - 295 - 295 21,414
Equipment Operation - - 1,009 - 1,009 -
Business Travel - - 6,578 - 6,578 -
Meetings & Conferences - - 5,197 - 5,197 -
Training - - 12,228 - 12,228 -
Advertising - - 894 - 894 -
Marketing/Promotions - - 3,304 - 3,304 6,390
Communications - - 2,611 - 2,611 -
Utilities - - 8 - 8 -
Other Charges - - 59,168 - 59,168 117,220
Subtotal CPA Expenditures - - 365,535 - 365,535 359,290
Non-CPA
Program Contracted Services 295,376 - 393,042 - 393,042 340,574
Other Expenditures
Salaries - 87,375 87,375 - 87,375 104,749
Fringe Benefit Costs - 46,770 46,770 - 46,770 67,762
Auditing - 2,988 2,988 - 2,988 2,988
Consultants - - - - - 20,897
Professional Groups - - - 2,400 2,400 -
Equipment Rental - 3,250 3,250 - 3,250 3,000
Other Contracted Services - 512 512 - 512 -
Postage - 338 338 - 338 500
Office Supplies - 2,063 2,063 - 2,063 2,037
Program Supplies - 9,934 9,934 - 9,934 -
Printing and Publishing - 738 738 - 738 -
Business Travel - 55 95 - 95 244
Meetings & Conferences - 2,339 2,339 - 2,339 -
Training - 1,913 2,663 - 2,663 16,431
Board's Expenditures - 4,644 4,644 - 4,644 5,764
Marketing/Promotions - - - - - 246
Communications - 1,808 1,808 - 1,808 1,813
Other Charges - 279,990 289,448 - 289,448 225,570
Subtotal Non-CPA Expenditures 295,376 444,717 848,007 2,400 850,407 792,575
Total Expenditures 295,376 444,717 1,213,542 2,400 1,215,942 1,151,865
Excess of Revenues Over (Under) Expenditures - (422,226) (422,222) (1,152) (423,374) (422,438)
OTHER FINANCING SOURCES
Transfers In for:
Program Contracted Services - 422,226 422,226 - 422,226 393,454
Net Increase (Decrease) in Fund Balances - - 4 (1,152) (1,148) (28,984)
Fund Balances, July 1 - (523,131) 55,932 9,808 65,740 94,724
Fund Balances, June 30 $ - $ (523,131) $ 55,936 $ 8,656 $ 64,592 $ 65,740
-166-

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
FOR THE YEAR ENDED JUNE 30, 2018
COMMUNITY PARTNERSHIPS FOR CHILDREN RETURNED REINVESTMENT FUND
Variance with Variance with
Final Budget Final Budget
Original Final Positive Original Final Positive
Budget Budget Actual (Negative) Budget Budget Actual (Negative)
REVENUES
Intergovernmental
GOC - CPA and Non-CPA $ 335,286 $ 372,536 $ 365,535 $ (7,001) $ - $ - $ - $ -
Federal GOCCP Youth Strategies - 108,328 107,918 (410) - - - -
Other 296,372 296,372 295,376 (996) - - - -
Investment Income - - - - - - 248 248
Miscellaneous 8,496 27,885 22,491 (5,394) - - 1,000 1,000
Total Revenues 640,154 805,121 791,320 (13,801) - - 1,248 1,248
EXPENDITURES
Program Contracted Services 480,682 518,405 526,142 (7,737) - - - -
Other Expenditures
Salaries 197,212 214,316 193,355 20,961 - - - -
Fringe Benefit Costs 73,846 60,281 59,150 1,131 - - - -
Auditing 2,988 14,033 7,929 6,104 - - - -
Consultants - 13,225 11,582 1,643 - - - -
Professional Groups - - - - - - 2,400 (2,400)
Equipment Rental 3,000 3,625 3,625 - - - - -
Other Contracted Services - 7,137 512 6,625 - - - -
Postage 1,420 741 435 306 - - - -
Office Supplies 2,122 4,736 4,060 676 - - - -
Program Supplies - 18,129 13,725 4,404 - - - -
Printing and Publishing - 2,430 1,033 1,397 - - - -
Equipment Operation 2 50 1,201 1,009 192 - - - -
Business Travel 5 00 7,102 6,673 429 - - - -
Meetings & Conferences - 7,468 7,536 (68) - - - -
Training 2,000 11,554 14,891 (3,337) - - - -
Board's Expenditures 6,500 6,500 4,644 1,856 - - - -
Advertising - 950 894 56 - - - -
Marketing/Promotions - 2,895 3,304 (409) - - - -
Communications 1,780 3,542 4,419 (877) - - - -
Utilities - - 8 (8) - - - -
Rent - 200 - 200 - - - -
Other Charges 282,616 351,983 348,616 3,367 - - - -
Total Expenditures 1,054,916 1,250,453 1,213,542 36,911 - - 2,400 (2,400)
Excess of Revenues Over (Under)
Expenditures ( 414,762) (445,332) (422,222) 23,110 - - (1,152) (1,152)
OTHER FINANCING SOURCES
Program Contracted Services 414,762 445,332 422,226 (23,106) - - - -
Net Increase (Decrease) in Fund Balances $ - $ - 4 $ 4 $ - $ - (1,152) $ (1,152)
Fund Balances, July 1 55,932 9,808
Fund Balances, June 30 $ 55,936 $ 8,656
-168-

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
FOR THE YEAR ENDED JUNE 30, 2018
(CONTINUED)
TOTAL
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ 335,286 $ 3 72,536 $ 365,535 $ (7,001)
- 1 08,328 107,918 (410)
296,372 2 96,372 295,376 (996)
- - 248 248
8 ,496 27,885 23,491 (4,394)
640,154 8 05,121 792,568 (12,553)
480,682 5 18,405 526,142 (7,737)
197,212 2 14,316 193,355 2 0,961
73,846 60,281 59,150 1,131
2 ,988 14,033 7,929 6,104
- 13,225 11,582 1,643
- - 2,400 (2,400)
3 ,000 3,625 3,625 -
- 7,137 512 6,625
1 ,420 741 435 306
2 ,122 4,736 4,060 676
- 18,129 13,725 4,404
- 2,430 1,033 1,397
2 50 1,201 1,009 192
5 00 7,102 6,673 429
- 7,468 7,536 (68)
2 ,000 11,554 14,891 (3,337)
6 ,500 6,500 4,644 1,856
- 950 894 56
- 2,895 3,304 (409)
1 ,780 3,542 4,419 (877)
- - 8 (8)
- 200 - 200
282,616 3 51,983 348,616 3,367
1,054,916 1 ,250,453 1,215,942 3 4,511
(414,762) (445,332) (423,374) 2 1,958
414,762 4 45,332 422,226 (23,106)
$ - $ - (1,148) $ (1,148)
65,740
$ 64,592
-169-

STATISTICAL SECTION
The Statistical Section, which fully incorporates information mandated by Governmental Accounting
Standards Board (GASB) Statement No. 44, Economic Condition Reporting: The Statistical Section,
presents detailed information for the primary government in the following areas, as a context for
understanding what the information in the Financial Section says about the County’s overall financial
health:
FINANCIAL TRENDS – Information to help the reader understand how the County’s financial
performance and well-being have changed over time.
REVENUE CAPACITY – Information to help the reader assess the County’s most significant
local revenue sources – the property tax and income tax.
DEBT CAPACITY – Information to help the reader assess the affordability of the County’s
current levels of outstanding debt and the County’s ability to issue additional debt in the future.
DEMOGRAPHIC AND ECONOMIC INFORMATION – Indicators to help the reader
understand the environment within which the County’s financial activities take place.
OPERATING INFORMATION – Service and infrastructure data to help the reader understand
how the information in the County’s financial report relates to the services the County provides
and the activities it performs.
Many of these tables cover more than two fiscal years and present data from outside the accounting
records. Therefore, the Statistical Section is unaudited.
-171-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
NET POSITION BY COMPONENT - GOVERNMENT-WIDE
(GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 1
2009 2010 2011 2012 2013
Governmental Activities:
Net Investment in Capital Assets $ 123,217,989 $ 121,702,025 $ 118,274,533 $ 118,564,684 $ 121,246,426
Restricted 16,582,660 22,290,307 22,399,514 5,982,041 15,691,080
Unrestricted (deficit) (1) (26,672,299) (45,795,597) (61,193,944) (44,686,543) (66,089,615)
Total Governmental Activities Net Position 113,128,350 98,196,735 79,480,103 79,860,182 ( 2) 70,847,891
Business-type Activities:
Net Investment in Capital Assets 77,146,688 79,032,373 78,069,061 76,763,695 78,693,078
Restricted 19,886,675 18,180,809 16,821,905 3,513,948 3,176,328
Unrestricted - - - 12,591,302 11,031,281
Total Business-type Activities Net Position 97,033,363 97,213,182 94,890,966 92,868,945 ( 2) 92,900,687
Primary Government:
Net Investment in Capital Assets 200,364,677 200,734,398 196,343,594 195,328,379 199,939,504
Restricted 36,469,335 40,471,116 39,221,419 9,495,989 18,867,408
Unrestricted (deficit) (1) (26,672,299) (45,795,597) (61,193,944) (32,095,241) (55,058,334)
Total Primary Government Net Position $ 210,161,713 $ 195,409,917 $ 174,371,069 $ 172,729,127 ( 2) $ 163,748,578
NOTES:
* Government-wide net position information is reported on the accrual basis of accounting.
* Accounting standards require that net position be reported in three components in the financial
statements: net investment in capital assets, restricted; and unrestricted. Net
position is considered restricted when (1) an external party, such as the state or federal
government, places a restriction on how the resources may be used, or (2) enabling
legislation is enacted by the County.
* Source: Statement of Net Position
(1) In the government-wide financial statements, the County has reported negative unrestricted amounts for some years.
This is due to the fact that the County issues general obligation bonded debt for purposes of capital construction on
behalf of the Queen Anne's County Board of Education. Absent the effect of this relationship, the County would
have reported the following:
Government-wide unrestricted (deficit) net position would have been:
Unrestricted (deficit) net position reported above $ (26,672,299) $ (45,795,597) $ (61,193,944) $ (32,095,241) $ (55,058,334)
Debt issued for capital on behalf of others 50,291,243 57,677,186 72,437,047 68,278,842 63,283,726
County (deficit) net position absent the effect of this relationship $ 23,618,944 $ 11,881,589 $ 11,243,103 $ 36,183,601 $ 8,225,392
(2) In fiscal year 2013, the County consolidated two Enterprise funds into the General Fund. This consolidation resulted in a total net position change of $539,220 between Governmental Activities and Business-type Activities.
The FY2012 Net Position has been reclassified to show this change.
(3) FY2013 Net Position of Governmental Activities was restated in fiscal year 2014.
(4) FY2014 Net Position of Governmental and Business-Type Activities was restated in fiscal year 2015.
-172-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
NET POSITION BY COMPONENT - GOVERNMENT-WIDE
(GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 1
(CONTINUED)
2014 2015 2016 2017 2018
$ 127,369,959 $ 125,434,538 $ 123,466,319 $ 120,249,244 $ 114,794,226
17,616,132 20,464,486 21,063,295 13,094,534 13,275,244
(71,169,310) (73,475,567) (78,567,505) (67,189,342) (58,025,753)
(3) 73,816,781 (4) 72,423,457 65,962,109 66,154,436 70,043,717
79,783,160 80,787,152 80,909,015 86,163,078 84,386,291
3,110,033 3,061,534 1,699,914 1,700,836 1,060,134
8,721,212 8,486,063 10,240,161 4,116,300 7,458,996
91,614,405 (4) 92,334,749 92,849,090 91,980,214 92,905,421
207,153,119 206,221,690 204,375,334 206,412,322 199,180,517
20,726,165 23,526,020 22,763,209 14,795,370 14,335,378
(62,448,098) (64,989,504) (68,327,344) (63,073,042) (50,566,757)
(3) $ 165,431,186 (4) $ 164,758,206 $ 158,811,199 $ 158,134,650 $ 162,949,138
$ (62,448,098) $ (64,989,504) $ (68,327,344) $ (63,073,042) $ (50,566,757)
67,651,486 66,219,608 63,271,304 59,207,136 58,625,356
$ 5,203,388 $ 1,230,104 $ (5,056,040) $ (3,865,906) $ 8,058,599
-173-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET POSITION - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
2009 2010 2011 2012 2013
Expenses
Governmental Activities:
General Government $ 13,317,683 $ 14,089,387 $ 15,968,633 $ 13,421,531 $ 13,639,728
Public Safety 23,570,049 25,361,341 25,413,678 2 5,469,721 26,174,144
Public Works 10,237,718 9,432,489 9,098,949 1 0,373,286 11,891,013
Health 1,590,004 1,663,321 1,701,677 1 ,642,723 1,812,920
Social Services 5,617,621 5,554,667 5,001,240 4 ,526,166 5,560,196
Education 53,296,238 53,491,659 57,506,341 5 3,693,309 49,459,783
Parks & Recreation (3) 5,060,018 3,618,427 3,090,228 - -
Library 1,414,008 1,473,689 1,457,336 1 ,302,163 1,304,076
Conservation of Natural Resources 2,473,308 5,281,372 3,811,748 2 ,802,337 838,775
Economic/Community Development 2,197,116 2,001,306 1,893,570 8 87,837 1,108,912
Interest and Fiscal Charges 2,831,002 3,510,678 4,078,105 4 ,196,072 4,042,236
Total Governmental Activities Expenses 121,604,765 125,478,336 129,021,505 1 18,315,145 115,831,783
Business-type Activities:
Water and Sewer 10,689,782 10,610,705 10,905,989 1 0,711,211 11,783,515
Golf Course (4) 2,178,163 2,789,901 4,099,507 2 ,269,933 538,420
Public Landings and Marinas (5) 38,050 9 6,739 67,395 1 10,884 535,837
Airport 879,906 1,017,780 1,167,655 1 ,457,087 913,845
Total Business-type Activities Expenses 13,785,901 14,515,125 16,240,546 1 4,549,115 13,771,617
Total Primary Government Expenses 135,390,666 139,993,461 145,262,051 1 32,864,260 129,603,400
Program Revenues
Governmental Activities:
General Government
Charges for Services 1,055,945 1,261,230 1,086,641 1 ,081,808 1,272,807
Operating Grants and Contributions 403,018 5 46,176 694,347 7 42,205 697,712
Capital Grants and Contributions 5,567 4 4,743 118,100 1 16,710 135,032
Total Revenue 1,464,530 1,852,149 1,899,088 1 ,940,723 2,105,551
Public Safety
Charges for Services 1,394,463 1,263,212 1,090,545 1 ,320,647 1,387,591
Operating Grants and Contributions 1,266,869 1,891,120 1,461,080 1 ,113,018 1,328,493
Capital Grants and Contributions 273,176 3 03,566 82,885 1 91,223 249,594
Total Revenue 2,934,508 3,457,898 2,634,510 2 ,624,888 2,965,678
Public Works
Charges for Services 714,765 7 91,796 872,352 1 ,107,426 1,636,604
Operating Grants and Contributions 7,566,648 6 32,923 546,719 4 88,027 624,653
Capital Grants and Contributions 298,500 2 64,078 901,289 5 41,887 1,687,783
Total Revenue 8,579,913 1,688,797 2,320,360 2 ,137,340 3,949,040
Social Services
Charges for Services 68,386 6 7,423 69,382 7 1,655 71,973
Operating Grants and Contributions 2,928,291 2,666,917 2,050,062 2 ,076,096 2,613,905
Capital Grants and Contributions 348,124 2,688,245 215,748 18,691 51,023
Total Revenue 3,344,801 5,422,585 2,335,192 2 ,166,442 2,736,901
Education
Charges for Services 740,213 8 52,201 755,443 1 ,169,425 1,052,691
Operating Grants and Contributions 8,050 4 33,000 - - -
Capital Grants and Contributions 161,673 - - - -
Total Revenue 909,936 1,285,201 755,443 1 ,169,425 1,052,691
Parks & Recreation
Charges for Services 240,954 1 77,568 187,901 - -
Operating Grants and Contributions 509 1 23,336 1,868 - -
Capital Grants and Contributions 1,087,329 6 31,504 199,698 - -
Total Revenue 1,328,792 9 32,408 389,467 - -
Conservation of Natural Resources
Charges for Services 97,481 1 01,019 75,354 9 8,593 63,105
Operating Grants and Contributions 55,847 9 3,002 1,006,138 3 6,872 400,193
Capital Grants and Contributions 691,085 4,191,024 1,923,471 9 98,757 -
Total Revenue 844,413 4,385,045 3,004,963 1 ,134,222 463,298
Economic/Community Development
Charges for Services 4,786 - 4,236 1 59,492 234,100
Operating Grants and Contributions 641,305 - 239,893 2 45,143 176,216
Capital Grants and Contributions - - 110,561 8 1,867 575,440
Total Revenue 646,091 - 354,690 4 86,502 985,756
Total Governmental Activities Program Revenues 20,052,984 19,024,083 13,693,713 1 1,659,542 14,258,915
-174-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET POSITION - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
(CONTINUED)
2014 2015 2016 2017 2018
$ 14,133,149 $ 10,849,277 $ 13,936,312 $ 13,177,254 $ 15,833,152
26,666,211 25,297,450 27,525,712 27,997,262 27,130,890
12,365,647 14,363,603 19,522,534 20,753,117 17,665,141
2,083,201 1,856,158 2,032,657 2,006,219 1,996,939
5,040,139 4,775,440 5,300,871 5,418,152 5,152,409
54,882,430 65,633,331 60,752,025 59,211,517 62,296,920
- - - - -
1,336,098 1,458,348 1,622,848 1,710,668 1,785,580
2,395,762 587,147 1,799,234 616,237 2,567,600
1,528,035 1,763,024 3,391,547 1,860,222 2,477,129
3,987,943 4,039,622 4,345,527 4,150,101 4,294,929
124,418,615 130,623,400 140,229,267 136,900,749 141,200,689
11,059,306 10,412,432 10,615,466 11,818,087 12,297,109
515,325 496,065 505,085 540,504 509,150
544,945 537,823 529,943 572,360 534,966
807,226 1,014,491 966,896 1,053,899 1,077,168
12,926,802 12,460,811 12,617,390 13,984,850 14,418,393
137,345,417 143,084,211 152,846,657 150,885,599 155,619,082
1,500,273 1,505,857 1,565,170 1,552,164 1,669,311
606,649 644,297 582,571 563,016 660,790
589,988 96,684 (30,000) - 1,080,084
2,696,910 2,246,838 2,117,741 2,115,180 3,410,185
1,286,945 1,244,752 1,354,350 1,350,626 1,505,267
1,081,577 1,052,666 1,088,597 1,037,879 1,294,733
282,139 119,118 175,653 5,406 166,001
2,650,661 2,416,536 2,618,600 2,393,911 2,966,001
1,425,012 1,275,538 1,337,358 1,472,664 1,779,206
712,550 527,538 1,029,019 980,075 822,659
2,221,299 80,000 108,880 161,084 282,028
4,358,861 1,883,076 2,475,257 2,613,823 2,883,893
65,537 68,187 76,404 73,066 71,131
2,026,675 2,056,111 1,834,000 1,893,648 2,018,289
67,392 40,527 140,400 58,500 58,500
2,159,604 2,164,825 2,050,804 2,025,214 2,147,920
1,721,379 1,249,332 1,230,994 1,319,433 1,272,301
- - - - -
- - - - -
1,721,379 1,249,332 1,230,994 1,319,433 1,272,301
- - - - -
- - - - -
- - - - -
- - - - -
73,279 72,688 70,708 60,826 110,655
103,892 96,195 68,152 186,333 131,321
75,820 3,637 573,003 - 1,439,284
252,991 172,520 711,863 247,159 1,681,260
508,000 80,558 311,000 620,000 316,500
255,100 285,344 156,804 231,360 810,319
(69,569) - - - -
693,531 365,902 467,804 851,360 1,126,819
14,533,937 10,499,029 11,673,063 11,566,080 15,488,379
CONTINUED
-175-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET POSITION - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
(CONTINUED)
2009 2010 2011 2012 2013
Business-type Activities:
Water and Sewer
Charges for Services $ 7,695,100 $ 8,224,428 $ 8,192,471 $ 7,977,667 $ 8,181,434
Operating Grants and Contributions - 9 8,492 - 5 5,728 161,600
Capital Grants and Contributions 682,935 2 08,115 837,426 3 47,573 2,048,768
Total Revenue 8,378,035 8,531,035 9,029,897 8 ,380,968 10,391,802
Golf Course (4)
Charges for Services 1,526,244 1,633,203 1,568,227 1 ,501,550 313,364
Operating Grants and Contributions 45,824 4 1,838 39,572 5 2,915 -
Capital Grants and Contributions 69,068 2 89,895 196,487 2 8,680 -
Total Revenue 1,641,136 1,964,936 1,804,286 1 ,583,145 313,364
Public Landings and Marinas (5)
Charges for Services 100,250 6 2,600 84,987 1 02,290 440,270
Operating Grants and Contributions - 2 9,017 16,241 1 4,183 42,914
Capital Grants and Contributions - 5 45,123 588,326 7 8,314 18,692
Total Revenue 100,250 6 36,740 689,554 1 94,787 501,876
Airport
Charges for Services 34,907 5 0,585 37,955 5 8,589 48,072
Operating Grants and Contributions - 3 3,922 3,715 4 7,412 2,621
Capital Grants and Contributions 289,112 1,519,810 448,600 6 93,162 2,472,782
Total Revenue 324,019 1,604,317 490,270 7 99,163 2,523,475
Total Business-type Activities Program Revenues 10,443,440 12,737,028 12,014,007 1 0,958,063 13,730,517
Total Primary Government Program Revenues 30,496,424 31,761,111 25,707,720 2 2,617,605 27,989,432
Net (Expense) Revenue (1)
Governmental activities (101,551,781) (106,454,253) (115,327,792) (106,655,603) (101,572,868)
Business-type activities (3,342,461) (1,778,097) (4,226,539) (3,591,052) (41,100)
Total Primary Government Net Expense $ (104,894,242) $ (108,232,350) $ (119,554,331) $ (110,246,655) $ (101,613,968)
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes (2) $ 95,530,316 $ 90,469,883 $ 96,093,533 $ 105,693,926 $ 107,978,036
Investment income 642,472 1 44,553 136,523 1 26,650 107,095
Gain on Sale of Capital Assets 1,540,404 2 6,731 281,158 2 7,627 163,426
Miscellaneous 2,182,525 7 86,719 711,868 1 ,254,255 1,051,760
Transfers In (Out) (3,348,074) (559,331) (611,922) (605,996) (337,843)
Total Governmental Activities 96,547,643 90,868,555 96,611,160 1 06,496,462 108,962,474
Business-type Activities:
Investment income 595,279 4 36,045 407,629 3 74,665 356,374
Miscellaneous 918,688 9 62,540 884,772 1 ,127,590 855,504
Transfers In (Out) 3,348,074 5 59,331 611,922 6 05,996 359,277
Total Business-type Activities 4,862,041 1,957,916 1,904,323 2 ,108,251 1,571,155
Total Primary Government 101,409,684 92,826,471 98,515,483 1 08,604,713 110,533,629
Change in Net Position
Governmental activities (5,004,138) (15,585,698) (18,716,632) (159,141) 7,389,606
Business-type activities 1,519,580 1 79,819 (2,322,216) (1,482,801) 1,530,055
Total Primary Government $ (3,484,558) $ (15,405,879) $ (21,038,848) $ (1,641,942) $ 8,919,661
NOTES:
* Government-wide net position information is reported on the accrual basis of accounting.
* Source: Statement of Activities.
(1) Net (expense)/revenue is the difference between the expenses and program revenues of a function or program. It indicates
the degree to which a function or program is supported with its own fees and program-specific grants versus its reliance
upon funding from taxes and general revenues. Numbers in parentheses indicate that expenses were greater than program
revenues and therefore general revenues were needed to finance that function or program. Numbers without parentheses
mean that program revenues were more than sufficient to cover expenses.
(2) See Table 2-b for detail of General Tax Revenues.
(3) Beginning in FY12, Parks & Recreation governmental activities are included in public works.
(4) Prior to FY13, this section included data for the Golf Course, Recreation Programs, Public Landings,
and Property Management Funds. Beginning in FY13, this section only includes Golf Course Fund data.
(5) Prior to FY13, this section only included data for the Public Marinas Funds. Beginning in FY13, this section includes
data for both Public Marinas and Public Landings, as these funds were combined to form one fund.
-176-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET POSITION - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
(CONTINUED)
2014 2015 2016 2017 2018
$ 8,341,848 $ 8,840,213 $ 8,956,360 $ 8,222,317 $ 9,214,383
90,000 90,000 85,099 90,000 90,000
665,268 1,862,257 1,958,051 2,222,796 4,198,378
9,097,116 10,792,470 10,999,510 10,535,113 13,502,761
297,293 295,955 305,528 318,599 340,123
- - - - -
- - - - -
297,293 295,955 305,528 318,599 340,123
423,478 423,723 423,427 443,176 451,524
36,439 43,304 36,781 33,542 104,829
- - - - -
459,917 467,027 460,208 476,718 556,353
49,061 53,200 45,916 33,256 25,857
2,420 73,311 52,837 245,738 60,858
7,457 - - - -
58,938 126,511 98,753 278,994 86,715
9,913,264 11,681,963 11,863,999 11,609,424 14,485,952
24,447,201 22,180,992 23,537,062 23,175,504 29,974,331
(109,884,678) (120,124,371) (128,556,204) (125,334,669) (125,712,310)
(3,013,538) (778,848) (753,391) (2,375,426) 67,559
$ (112,898,216) $ (120,903,219) $ (129,309,595) $ (127,710,095) $ (125,644,751)
$ 112,123,625 $ 116,821,607 $ 121,011,135 $ 123,299,031 $ 131,444,679
95,286 94,092 174,691 444,063 978,955
346,765 1,098,632 161,106 53,936 87,734
877,629 1,076,893 949,046 2,065,465 630,895
(589,737) (360,177) (201,122) (335,499) (183,026)
112,853,568 118,731,047 122,094,856 125,526,996 132,959,237
343,568 323,585 320,443 361,840 439,716
793,951 815,430 746,167 809,211 865,879
589,737 360,177 201,122 335,499 183,026
1,727,256 1,499,192 1,267,732 1,506,550 1,488,621
114,580,824 120,230,239 123,362,588 127,033,546 134,447,858
2,968,890 (1,393,324) (6,461,348) 192,327 7,246,927
(1,286,282) 720,344 514,341 (868,876) 1,556,180
$ 1,682,608 $ (672,980) $ (5,947,007) $ (676,549) $ 8,803,107
-177-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
GENERAL TAX REVENUES - GOVERNMENTAL ACTIVITIES
LAST TEN FISCAL YEARS
Table 2-b
2009 2010 2011 2012 2013
Local Property Taxes $ 55,362,114 $ 59,267,240 $ 60,070,368 $ 65,937,415 $ 65,591,225
Local Income Tax 34,834,937 25,715,247 30,624,679 34,028,234 35,769,303
Other Local Taxes 5,333,265 5,487,396 5,398,486 5,728,277 6,617,508
Total Taxes - Governmental Activities $ 95,530,316 $ 90,469,883 $ 96,093,533 $ 105,693,926 $ 107,978,036
2014 2015 2016 2017 2018
Local Property Taxes $ 64,712,683 $ 64,672,721 $ 65,185,546 $ 66,487,004 $ 67,736,404
Local Income Tax 40,899,804 44,643,870 47,928,725 48,624,679 55,211,695
Other Local Taxes 6,511,138 7,505,016 7,896,864 8,187,348 8,496,580
Total Taxes - Governmental Activities $ 112,123,625 $ 116,821,607 $ 121,011,135 $ 123,299,031 $ 131,444,679
NOTES:
* Government-wide general tax revenue information is reported on the accrual basis of accounting.
* Source: Statement of Activities.
-178-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 3
2009 2010 2011 2012 2013
General Fund:
Reserved $ 8,643,600 $ 7,734,692 $ - $ - $ -
Unreserved 6,381,843 6,296,418 - - -
Nonspendable - - 4 ,000 5 55,215 626,122
Restricted - - 3 33,798 3 40,670 8,111,614
Committed - - 6 57,068 6 95,944 -
Assigned - - 7 0,000 - 1,284,657
Unassigned - - 4 ,753,656 1 1,207,265 5,965,003
Total General Fund 15,025,443 14,031,110 5 ,818,522 1 2,799,094 15,987,396
All Other Governmental Funds:
Reserved 17,007,368 15,153,381 - - -
Unreserved, reported in:
Capital Projects Fund 1,723,066 12,538,916 - - -
Special Revenue Funds 2,751,120 7,842,939 - - -
Nonspendable - - 4 ,401,483 5 ,136,024 5,406,512
Restricted - - 2 2,065,716 1 2,255,292 12,724,859
Committed - - 1 ,820,818 2 ,054,749 3,480,382
Assigned - - 1 4,745,215 1 8,654,017 24,665,235
Unassigned - - (172,381) (157,828) ( 135,515)
Total All Other Governmental Funds 21,481,554 35,535,236 4 2,860,851 3 7,942,254 46,141,473
Total All Governmental Funds $ 36,506,997 $ 49,566,346 $ 4 8,679,373 $ 5 0,741,348 $ 62,128,869
2014 2015 2016 2017 2018
General Fund:
Nonspendable $ 480,385 $ 687,777 $ 5 86,481 $ 7 54,921 $ 1,001,610
Restricted 8,375,368 8,681,112 9 ,002,389 1 0,626,394 10,999,800
Committed 1,157,360 2,000,000 3 ,000,000 4 ,000,000 5,027,897
Assigned 1,284,875 2,034,875 1 ,926,782 1 ,998,415 1,483,827
Unassigned 7,123,519 7,793,085 8 ,468,591 8 ,830,530 11,142,331
Total General Fund (1) 18,421,507 21,196,849 2 2,984,243 2 6,210,260 29,655,465
All Other Governmental Funds:
Nonspendable 5,470,608 5,919,048 6 ,146,072 7 ,552,462 7,583,553
Restricted 21,824,970 17,794,372 2 1,316,088 8 ,900,465 6,815,341
Committed 4,097,033 4,209,177 3 ,425,701 1 3,447,283 15,202,215
Assigned 25,939,319 23,093,224 1 8,029,073 1 6,045,167 19,618,643
Unassigned (115,800) ( 108,185) (115,129) (53,665) ( 48,758)
Total All Other Governmental Funds (1) 57,216,130 50,907,636 4 8,801,805 4 5,891,712 49,170,994
Total All Governmental Funds $ 75,637,637 $ 72,104,485 $ 7 1,786,048 $ 7 2,101,972 $ 78,826,459
NOTES:
* Fund balance information for governmental funds is reported on the modified accrual basis of accounting.
* Source: Balance Sheet, Governmental Funds.
(1) As of June 30, 2011, fund balance classifications changed due to the implementation of GASB 54.
-179-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
2009 2010 2011 2012 2013
Revenues
Taxes
Local Property Taxes $ 55,374,053 $ 59,242,742 $ 60,097,959 $ 65,918,832 $ 65,554,079
Local Income Taxes 35,988,334 29,647,125 29,527,496 35,969,879 39,438,906
Other Local Taxes 5 ,333,265 5,487,396 5 ,398,486 5 ,728,277 6 ,617,508
State Shared Taxes 7 ,591,829 508,138 2 30,401 3 06,235 5 10,726
Licenses and Permits 8 74,639 863,782 9 19,663 8 77,365 1 ,004,774
Intergovernmental 8 ,049,695 12,061,066 8 ,777,729 5 ,867,211 7 ,588,691
Bond Interest Reimbursement - Build America Bond - 193,567 4 38,022 4 32,212 4 06,337
Charges for Current Services 3 ,326,696 3,396,080 3 ,143,846 3 ,908,998 4 ,594,240
Fines and Forfeitures 1 15,658 258,937 7 8,345 2 22,683 1 19,857
Capital Contributions - Developer - - - - -
Investment Income 6 42,472 144,553 1 36,523 1 26,650 1 07,095
Donations 7 6,867 140,731 1 09,342 4 6,332 3 6,332
Miscellaneous 2 ,182,525 786,719 7 08,455 1 ,254,255 1 ,051,760
Total Revenues 119,556,033 112,730,836 109,566,267 120,658,929 127,030,305
Expenditures
Current
General Government (1) 10,841,479 10,608,976 10,397,457 9 ,171,830 9 ,282,310
Public Safety 20,483,238 21,344,575 21,127,321 20,985,077 21,275,229
Public Works 8 ,678,715 7,671,352 7 ,277,767 7 ,733,226 9 ,615,805
Health 1 ,572,848 1,637,101 1 ,670,222 1 ,604,462 1 ,811,402
Social Services 5 ,029,493 4,767,647 4 ,098,650 3 ,533,022 4 ,051,741
Education 53,348,513 53,545,597 57,566,865 53,755,497 48,418,107
Parks and Recreation 3 ,145,367 3,055,335 2 ,521,175 - -
Library 1 ,390,398 1,424,078 1 ,433,725 1 ,277,993 1 ,278,228
Conservation of Natural Resources 2 ,445,352 5,263,577 3 ,872,916 2 ,794,262 8 90,480
Economic/Community Development 1 ,968,587 1,847,195 1 ,715,524 7 58,089 8 98,129
Miscellaneous 7 06,792 1,373,090 4 ,699,452 3 ,704,702 4 ,862,189
Capital Outlay 8 ,594,972 7,868,741 4 ,838,581 2 ,755,949 3 ,370,909
Debt Service
Principal 5 ,089,347 4,948,144 6 ,964,558 7 ,095,307 7 ,069,406
Debt Issuance Costs ( 423) 145,884 1 29,671 1 62,021 ( 94)
Interest and Fiscal Charges 2 ,778,490 3,114,505 3 ,629,426 4 ,116,939 3 ,675,628
Total Expenditures 126,073,168 128,615,797 131,943,310 119,448,376 116,499,469
Excess (Deficiency) of Revenues over (under) Expenditures (6,517,135) ( 15,884,961) (22,377,043) 1 ,210,553 10,530,836
Other Financing Sources (Uses)
Issuance of Debt 1 22,780 29,299,154 21,897,570 8 ,010,000 5 64,068
Other Financing Use - Proceeds of Refunding Bonds - - - - -
Bond Premiums ( 423) 157,800 1 39,136 7 13,235 ( 101)
Payments to Bond Refunding Agent - - - (8,557,455) -
Other Financing Use - Debt Service - Principal - - - - -
Proceeds of Capital Asset Disposals 6 4,089 30,861 5 82,601 4 7,396 3 08,856
Insurance Proceeds 4 4,907 15,826 9 9,028 1 1,631 2 0,070
Transfers In 5 ,449,499 18,184,911 5 ,386,256 9 ,635,881 10,851,904
Transfers Out (8,879,272) ( 18,744,242) (6,614,521) (10,369,909) (11,228,409)
Total Other Financing Sources (Uses) (3,198,420) 28,944,310 21,490,070 (509,221) 5 16,388
Special Item - - - 1 ,360,643 -
Net Increase (Decrease) in Fund Balances $ (9,715,555) $ 13,059,349 $ (886,973) $ 2,061,975 $ 11,047,224
Debt service as a percentage of non-capital expenditures (2, 3) 6.79% 6.69% 8.34% 9.66% 9.54%
NOTES:
* Governmental fund information is reported on the modified accrual basis of accounting.
* Source: Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
and the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities.
(1) For all fiscal years, "General Government" includes amounts previously classified as "Miscellaneous," "Intergovernmental" and/or "Contingency."
(2) Only the principal and interest components of debt service expenditures are included in the calculation of the ratio of total debt service expenditures to noncapital expenditures.
(3) Noncapital expenditures represents Total Expenditures above, less the Net Increase in Capital Assets from the Reconciliation between the Government-Wide Statement of Activities
and the Statement of Revenues, Expenditures, and Changes in Fund Balance. Only the assets acquired (not included assets transferred or donated) from the reconciliation are used in the calculation.
-180-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
(CONTINUED)
2014 2015 2016 2017 2018
$ 64,701,622 $ 64,672,292 $ 64,946,443 $ 66,501,901 $ 67,944,730
40,326,921 42,889,715 46,424,552 48,578,044 51,834,189
6 ,511,137 7 ,505,016 7 ,896,865 8 ,187,348 8 ,496,580
7 49,366 5 57,834 6 23,256 7 08,566 8 36,677
1 ,080,891 1 ,062,917 1 ,078,144 1 ,123,072 1 ,167,444
5 ,588,984 4 ,030,576 4 ,696,561 3 ,987,308 7 ,539,052
3 83,777 3 75,323 3 64,799 3 50,254 3 34,858
5 ,357,919 4 ,251,835 4 ,617,730 5 ,114,605 5 ,298,701
1 41,615 1 82,160 2 50,110 2 11,102 2 58,226
1 02,316 - - - -
9 5,286 9 4,092 1 74,691 4 44,063 9 78,955
3 9,055 4 1,391 4 5,773 6 0,217 5 7,635
8 77,629 1 ,076,893 9 49,045 2 ,065,465 6 30,895
125,956,518 126,740,044 132,067,969 137,331,945 145,377,942
10,649,489 8 ,833,255 9 ,817,062 10,382,078 10,640,065
22,266,458 23,133,608 23,523,103 23,866,030 25,049,431
9 ,967,363 12,041,969 15,080,454 15,506,684 15,235,104
2 ,030,740 1 ,822,856 1 ,992,208 1 ,967,956 1 ,971,460
3 ,474,886 3 ,602,146 3 ,835,730 4 ,013,664 4 ,129,134
59,752,944 65,683,908 60,808,143 59,266,025 62,352,046
- - - - -
1 ,310,250 1 ,432,500 1 ,597,000 1 ,684,820 1 ,765,190
2 ,363,254 5 65,289 1 ,744,260 5 65,938 2 ,577,735
1 ,306,516 1 ,616,784 3 ,188,928 1 ,710,899 2 ,433,171
3 ,202,417 3 ,535,585 4 ,766,722 4 ,185,652 5 ,348,568
8 ,669,375 8 ,733,509 11,050,384 14,591,632 12,311,551
7 ,210,561 7 ,444,611 7 ,667,316 8 ,074,013 7 ,149,537
1 96,870 4 03,572 2 18,799 1 96,150 2 29,894
3 ,501,230 3 ,846,823 3 ,696,719 4 ,104,254 4 ,280,553
135,902,353 142,696,415 148,986,828 150,115,795 155,473,439
(9,945,835) (15,956,371) (16,918,859) (12,783,850) (10,095,497)
22,405,542 25,384,493 15,484,639 12,775,926 16,000,000
- - 8 ,042,773 - -
1 ,118,097 1 ,901,240 1 ,650,448 6 18,681 9 08,973
- (14,881,834) - - -
- - (8,446,336) - -
4 58,759 1 ,331,608 1 8,100 5 5,189 5 4,097
6 1,942 5 7,916 1 53,534 1 2,241 3 9,940
5 ,861,261 5 ,079,641 9 ,941,051 6 ,331,482 8 ,220,201
(6,450,998) (6,449,845) (10,243,787) (6,693,745) (8,403,227)
23,454,603 12,423,219 16,600,422 13,099,774 16,819,984
- - - - -
$ 13,508,768 $ (3,533,152) $ (318,437) $ 3 15,924 $ 6,724,487
8.44% 8.43% 8.16% 8.99% 8.00%
-181-

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
ASSESSED VALUE OF TAXABLE AND EXEMPT PROPERTY
LAST TEN FISCAL YEARS
Table 5
Real Property (2) Personal Property Total Total
Total Public Utility Taxable Taxable and
Fiscal Commercial Residential (1) Total Direct Assessed Assessed Exempt Exempt
Year Assessed Value Assessed Value Assessed Value Tax Rate (3) Value (2) (4) Value Property Property
2009 $ 1 ,503,024,419 $ 5 ,518,534,961 $ 7 ,021,559,380 $ 0 .7700 $ 6 1,513,370 $ 7,083,072,750 $ 5 47,163,868 $ 7 ,630,236,618
2010 1 ,606,785,131 5 ,911,287,556 7 ,518,072,687 0 .7700 6 2,858,590 7,580,931,277 5 96,219,654 8 ,177,150,931
2011 1 ,625,886,760 6 ,054,844,995 7 ,680,731,755 0 .7671 5 9,364,960 7,740,096,715 6 44,654,739 8 ,384,751,454
2012 1 ,485,091,345 6 ,139,645,414 7 ,624,736,759 0 .8471 6 0,635,440 7,685,372,199 6 94,372,116 8 ,379,744,315
2013 1 ,567,115,297 5 ,990,170,828 7 ,557,286,125 0 .8471 6 3,194,130 7,620,480,255 7 32,300,804 8 ,352,781,059
2014 1 ,540,562,905 5 ,935,284,963 7 ,475,847,868 0 .8471 6 4,411,900 7,540,259,768 6 96,880,673 8 ,237,140,441
2015 1 ,526,533,795 5 ,971,094,589 7 ,497,628,384 0 .8471 7 1,076,850 7,568,705,234 7 08,231,797 8 ,276,937,031
2016 1 ,536,236,637 6 ,015,729,665 7 ,551,966,302 0 .8471 7 4,544,230 7,626,510,532 7 13,843,531 8 ,340,354,063
2017 1 ,578,390,091 6 ,136,189,107 7 ,714,579,198 0 .8471 7 7,685,020 7,792,264,218 7 71,576,578 8 ,563,840,796
2018 1 ,619,626,376 6 ,277,865,272 7 ,897,491,648 0 .8471 7 6,903,490 7,974,395,138 7 84,345,727 8 ,758,740,865
NOTES:
* Tax exempt property is included for purposes of calculating total assessed value, which is used on Table 12-a.
(1) Residential real property includes single-family homes, townhouses, condominiums, and apartment dwellings. The assessed value shown
above has been reduced for the Homestead Credit assessment.
(2) Real property and personal property assessments are done every three years and every year, respectively, by the State
Department of Assessments and Taxation at 100% of estimated fair value.
(3) See Table 6-a for real property direct tax rates. Tax Rates are applied per $100 of assessed value.
(4) The personal property tax rate for Queen Anne's County is zero.
Source: State of Maryland, Department of Assessments and Taxation.
-183-

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
REAL PROPERTY TAX RATES - COUNTY DIRECT RATE
LAST TEN FISCAL YEARS
Table 6-a
County
Fiscal Direct
Year Rate (1)
2009 $ 0 .7700
2010 0.7700
2011 0.7671
2012 0.8471
2013 0.8471
2014 0.8471
2015 0.8471
2016 0.8471
2017 0.8471
2018 0.8471
NOTES:
* No discounts are allowed.
* Taxes are levied as of July 1, are due by September 30, and become delinquent October 1.
* Owner occupied properties may elect to pay on an annual basis. If no election is made,
taxes are paid on a semi-annual basis with payment due by September 30 and December 31.
* Non-owner occupied properties must pay on an annual basis.
* Interest at one percent per month is assessed on delinquent tax bills.
* Revised tax bills based upon certifications from the State received after September 1
may be paid within thirty days without interest.
* Delinquent taxes on real property are collected by sale.
* Costs of tax sale, which vary, are added to the redemption.
* Tax sale date: Third Tuesday in May.
* The personal property tax rate for Queen Anne's County is zero.
(1) Tax Rates are applied per $100 of assessed value.
-184-

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
REAL PROPERTY TAX RATES - COUNTY SPECIAL TAXING DISTRICTS
LAST TEN FISCAL YEARS
Table 6-b
Kent Narrows
Commercial Management
Fiscal and Waterfront
Year Improvement District
2009 $ 0 .0600
2010 0.0600
2011 0.0600
2012 0.0600
2013 0.0600
2014 0.0600
2015 0.0600
2016 0.0600
2017 0.0600
2018 0.0600
NOTES:
* Tax rates are per $100 of assessed value.
* The personal property tax rate for Queen Anne's County is zero.
-185-

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
REAL PROPERTY TAX RATES - OVERLAPPING GOVERNMENTS - TOWNS
LAST TEN FISCAL YEARS
Table 6-c
Fiscal Town of Town of Town of Town of Town of
Year Centreville Barclay Church Hill Millington Queen Anne
2009 $ 0 .3950 $ 0 .1000 $ 0 .3400 $ 0 .2800 $ 0 .1800
2010 0.3800 0.1000 0.3400 0.2800 0.1800
2011 0.3800 0.1000 0.3400 0.2800 0.1800
2012 0.3800 0.2000 0.3400 0.2800 0.1800
2013 0.3800 0.2000 0.3400 0.2800 0.1800
2014 0.3800 0.2000 0.3400 0.2800 0.1800
2015 0.3800 0.2000 0.3400 0.2800 0.1800
2016 0.3800 0.2000 0.3400 0.2800 0.1800
2017 0.4100 0.2000 0.3400 0.2800 0.1800
2018 0.4050 0.2000 0.3400 0.2800 0.1800
NOTES:
* Tax rates are per $100 of assessed value.
* The personal property tax rate for Queen Anne's County is zero.
* Taxes collected by the County for other fiscal units, including overlapping governments, are remitted
based on actual collections.
-186-

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
REAL PROPERTY TAX RATES - OVERLAPPING GOVERNMENTS - TOWNS
LAST TEN FISCAL YEARS
Table 6-c
(CONTINUED)
Town of Town of Town of
Queenstown Sudlersville Templeville
$ 0 .2000 $ 0 .1670 $ 0.3600
0.1810 0.1670 0.3600
0.1904 0.1670 0.3600
0.1890 0.1670 0.3600
0.1890 0.1670 0.3600
0.1890 0.1670 0.3600
0.1895 0.1670 0.3600
0.1850 0.1670 0.3600
0.1810 0.1670 0.5788
0.1773 0.1670 0.3600
-187-

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
TEN HIGHEST COMMERCIAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND NINE YEARS AGO
Table 7
For the Fiscal Year Ended June 30, 2018
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 71,684,600 0.90 %
KRM Development Corporation 30,258,300 0.38
Aspen Institute for Humanistic Studies 23,529,133 0.30
Washington Brick and Terra Cotta 15,541,500 0.19
Maryland General Land Co LLC 15,504,900 0.19
Great American Life Insureance Co 14,251,500 0.18
K Hovnanian at Kent Island LLC 13,007,900 0.16
Beach Harbor Campers Co-Operative 12,668,300 0.16
Anne Arundel Real Estate Holding 10,844,200 0.14
Shore Health System Inc 10,156,433 0.13
Total $ 217,446,766 2.73 %
Total Assessable Base $ 7,974,395,138 100.00 %
For the Fiscal Year Ended June 30, 2009
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 46,985,218 0.66 %
KRM Development Corporation 36,871,333 0.52
Great American Life Insurance Company 25,675,400 0.36
White's Heritage Partners 25,292,490 0.36
Waterford Centreville, LLC 13,799,182 0.19
Reliable Development Company 13,016,740 0.18
Washington Brick and Terra Cotta Company 12,556,666 0.18
JSE Investment 12,021,658 0.17
K Hovnanian's Four Seasons at Kent Island 11,838,400 0.17
Mears Point Association 11,693,204 0.17
Total $ 209,750,291 2.96 %
Total Assessable Base $ 7,083,072,750 100.00 %
Source: State of Maryland Department of Assessments and Taxation
-188-

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Table 8
Collected within the
Taxes Levied Fiscal Year of the Levy Collections in Total Collections to Date
Fiscal for the Percentage of Subsequent Percentage of
Year Fiscal Year Amount Original Levy Years Amount Original Levy
2009 $ 53,839,023 $ 53,756,369 99.85% $ 80,374 $ 53,836,743 100.00%
2010 57,788,231 57,720,564 99.88% 61,985 57,782,549 99.99%
2011 58,758,234 58,696,129 99.89% 55,435 58,751,564 99.99%
2012 64,549,671 64,459,862 99.86% 80,384 64,540,246 99.99%
2013 63,904,147 63,596,067 99.52% 55,677 63,651,744 99.61%
2014 63,184,321 62,834,349 99.45% 86,529 62,920,878 99.58%
2015 63,338,629 63,231,601 99.83% 69,696 63,301,297 99.94%
2016 63,799,184 63,647,404 99.76% 80,401 63,727,805 99.89%
2017 65,217,648 65,107,115 99.83% 103,497 65,210,612 99.83%
2018 66,768,776 66,721,619 99.93% - 66,721,619 99.93%
NOTES:
* This table includes data for all property taxes billed applicable to all funds for Queen Anne's County, Maryland to include General,
Special Revenue, and Enterprise Funds. Property taxes billed for the State of Maryland and various municipalities are excluded.
-189-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Table 9
Governmental Activities
General Total
Fiscal Obligation Notes Capital Governmental
Year Bonds Payable Leases Activities
2009 $ 64,411,805 $ 913,183 $ 155,482 $ 6 5,480,470
2010 87,967,432 1,652,082 105,884 89,725,398
2011 102,791,729 1,070,632 5 4,089 1 03,916,450
2012 97,127,263 889,256 - 98,016,519
2013 90,092,100 1,146,755 - 91,238,855
2014 107,883,563 958,156 - 1 08,841,719
2015 112,060,053 784,785 - 1 12,844,838
2016 118,977,909 1,913,199 - 1 20,891,108
2017 123,519,157 1,698,425 - 1 25,217,582
2018 132,567,304 1,417,461 - 1 33,984,765
Business-type Activities Ratios
Debt to
General Total Total Total Outstanding
Fiscal Obligation Notes Capital Business-type Primary Personal Debt per
Year Bonds Payable Leases Activities Government Income (1) Capita (1)
2009 $ 3,458,660 $ 19,624,863 $ - $ 2 3,083,523 $ 88,563,993 4.19% $ 1 ,881
2010 3,445,366 18,166,367 - 21,611,733 111,337,131 6.47% 2 ,289
2011 3,458,828 16,692,171 - 20,150,999 124,067,449 7.20% 2 ,590
2012 2,936,543 15,238,959 - 18,175,502 116,192,021 6.95% 2 ,431
2013 2,490,475 13,767,769 - 16,258,244 107,497,099 6.12% 2 ,210
2014 2,053,736 12,584,475 - 14,638,211 123,479,930 6.97% 2 ,538
2015 3,540,295 11,388,918 - 14,929,213 127,774,051 6.89% 2 ,618
2016 3,520,859 10,471,639 - 13,992,498 134,883,606 7.24% 2 ,780
2017 3,217,479 16,296,744 - 19,514,223 144,731,805 7.64% 2 ,960
2018 2,976,195 25,484,821 - 28,461,016 162,445,781 8.39% 3 ,322
NOTES:
(1) See Table 14 for personal income and population data, which are used in calculating these ratios.
-190-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Table 10
Percentage of
Fiscal General Total Taxable Per
Year Bonded Debt (1) Assessable Base (2) Capita (3)
2009 $ 67,870,465 0.96% $ 1,441
2010 91,412,798 1.21% 1,879
2011 106,250,557 1.37% 2,218
2012 100,063,806 1.30% 2,093
2013 92,582,575 1.21% 1,903
2014 109,937,299 1.46% 2,260
2015 115,600,348 1.53% 2,369
2016 122,498,768 1.61% 2,525
2017 126,736,636 1.63% 2,592
2018 135,543,499 1.70% 2,772
NOTES:
* General Bonded Debt includes all general obligation debt, regardless of
purpose or repayment source, and other bonded debt financed with general
government resources. Other debt is excluded because it is not in the form of bonds.
(1) General Bonded Debt is comprised of both governmental and business-
type activities from Table 9.
(2) See Table 5 for taxable assessable base.
(3) See Table 14 for population data.
-191-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF NET DIRECT AND OVERLAPPING DEBT
AS OF JUNE 30, 2018
Table 11
Name of Jurisdiction Gross Debt
Queen Anne's County:
County Government
Total Net Direct Debt (1) $ 133,984,765
Towns: (2)
Centreville (100%) 1 8,417,648
Millington (100%) 1 ,165,000
Queenstown (100%) 5 ,548,243
Sudlersville (100%) 4 ,700,000
Town of Barclay (100%) 1 3,266
Total Net Overlapping Debt 2 9,844,157
Total Net Direct and Overlapping Debt $ 163,828,922
NOTES:
(1) Net direct debt of the County includes Governmental Activities general obligation bonds, notes payable, and capital leases. See Table 9.
Overlapping debt is the debt of other governmental entities located within the County that is
payable in whole or in part by taxpayers of the County.
(2) Entities are located wholly within Queen Anne's County. Debt information reported by municipalities.
-193-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
2009 2010 2011 2012 2013
Computation of Legal Debt Margin - for Queen Anne's County
Other than Debt related to the Sanitary District:
Authorized debt limit under Title 5 (Subtitle 4) (1) $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000
Authorized bonded debt under specific public laws
Enterprise Funds, excluding Sanitary District (4) 1,446,993 1,862,866 2,340,495 2,304,876 2,160,475
General Obligation Debt (4) 6 4,411,805 8 7,967,432 1 02,791,729 9 7,127,263 9 0,092,100
Subtotal 6 5,858,798 8 9,830,298 1 05,132,224 9 9,432,139 9 2,252,575
Total authorized debt under Title 5 and specific public laws 7 3,858,798 9 7,830,298 1 13,132,224 1 07,432,139 1 00,252,575
LESS Outstanding bonds, notes payable, and capital leases (5) 8 8,563,993 1 11,337,131 1 24,067,449 1 16,192,021 1 07,497,099
Less: Sanitary District debt (4) 2 1,616,088 1 9,735,239 1 7,803,690 1 5,870,626 1 4,097,769
Subtotal 6 6,947,905 9 1,601,892 1 06,263,759 1 00,321,395 9 3,399,330
Legal Debt Margin - Other than the Sanitary District $ 6 ,910,893 $ 6 ,228,406 $ 6 ,868,465 $ 7 ,110,744 $ 6 ,853,245
Debt related to the Sanitary District Proprietary Fund:
Total taxable assessed value (3) $ 7,083,072,750 $ 7,580,931,277 $ 7,740,096,715 $ 7,685,372,199 $ 7,620,480,255
Plus exempt property (3) 5 47,163,868 5 96,219,654 6 44,654,739 6 94,372,116 7 32,300,804
Total assessed value $ 7,630,236,618 $ 8,177,150,931 $ 8,384,751,454 $ 8,379,744,315 $ 8,352,781,059
Debt Limit - 6% of total assessed value (2) $ 4 57,814,197 $ 4 90,629,056 $ 5 03,085,087 $ 5 02,784,659 $ 5 01,166,864
LESS Sanitary District 2 1,616,088 1 9,735,239 1 7,803,690 1 5,870,626 1 4,097,769
Less: Restricted Cash and Investments in the
Debt Service Fund available for payment of principal 4,180,188 3,925,026 3,658,194 3,244,564 2,840,468
1 7,435,900 1 5,810,213 1 4,145,496 1 2,626,062 1 1,257,301
Legal Debt Margin - Sanitary District $ 4 40,378,297 $ 4 74,818,843 $ 4 88,939,591 $ 4 90,158,597 $ 4 89,909,563
NOTES:
(1) Title 5, Subtitle 4 (1), of the Code of Public Local Laws of Queen Anne's County authorizes the County to borrow up to $8,000,000 for
general operating and capital improvement expenditures. This authority is in addition to any bonded debt authorized under specific public local laws.
(2) Title 24, Subtitle 1, Section 24-146(A) of the Code of Public Local Laws of Queen Anne's County authorizes the County to borrow an amount not to
exceed 6% of the total value of property assessed. The proceeds of such borrowings must be used for sewer and water system construction payments.
(3) See Table 5.
(4) See Note 9, Section B.
(5) See Note 9.
-194-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
(CONTINUED)
2014 2015 2016 2017 2018
$ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000
2,053,736 3,540,295 3,520,859 3,217,479 2,976,195
1 07,883,563 1 12,060,053 1 18,977,909 1 23,519,157 1 32,567,304
1 09,937,299 1 15,600,348 1 22,498,768 1 26,736,636 1 35,543,499
1 17,937,299 1 23,600,348 1 30,498,768 1 34,736,636 1 43,543,499
1 23,479,930 1 27,774,051 1 34,883,606 1 44,731,805 1 62,445,781
1 2,584,475 1 1,388,918 1 0,471,639 1 6,296,744 2 5,484,821
1 10,895,455 1 16,385,133 1 24,411,967 1 28,435,061 1 36,960,960
$ 7 ,041,844 $ 7 ,215,215 $ 6 ,086,801 $ 6 ,301,575 $ 6 ,582,539
$ 7,540,259,768 $ 7,568,705,234 $ 7,626,510,532 $ 7,792,264,218 $ 7,974,395,138
6 96,880,673 7 08,231,797 7 13,843,531 7 71,576,578 7 84,345,727
$ 8,237,140,441 $ 8,276,937,031 $ 8,340,354,063 $ 8,563,840,796 $ 8,758,740,865
$ 4 94,228,426 $ 4 96,616,222 $ 5 00,421,244 $ 5 13,830,448 $ 525,524,452
1 2,584,475 1 1,388,918 1 0,471,639 1 6,296,744 2 5,484,821
2,763,304 2,695,383 1,120,775 947,445 1,060,045
9,821,171 8,693,535 9,350,864 1 5,349,299 2 4,424,776
$ 4 84,407,255 $ 4 87,922,687 $ 4 91,070,380 $ 4 98,481,149 $ 501,099,676
-195-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LOCAL DEBT LIMIT
LAST TEN FISCAL YEARS
Table 12-b
2009 2010 2011 2012 2013
Computation of Local Debt Limit, as Authorized under Article 95, Section 22F of the Annotated Code of Maryland
and per criteria established by Queen Anne's County Resolution No. 13-04, as adopted May 2013.
CALCULATION PER FIRST FINANCIAL CRITERIA:
The sum of all outstanding and new general obligation and/or
bonded debt is 2.5% or less of the total taxable assessed base.
Total Taxable Assessed Base (1) $ 7,083,072,750 $ 7,580,931,277 $ 7,740,096,715 $ 7,685,372,199 $ 7,620,480,255
2.5% 2.5% 2.5% 2.5% 2.5%
2.5% of Total Taxable Assessed Base $ 177,076,819 $ 189,523,282 $ 193,502,418 $ 192,134,305 $ 190,512,006
LESS Outstanding and New General Obligation Debt applicable to limit (2) (3)
Enterprise Funds' Debt - Bonds $ 3,458,660 $ 3 ,445,366 $ 3 ,458,828 $ 2 ,936,543 $ 2,490,475
General Obligation Debt - Bonds and Notes 65,324,988 8 9,619,514 1 03,862,361 9 8,016,519 91,238,855
Total Outstanding and New General Obligation Debt $ 68,783,648 $ 9 3,064,880 $ 107,321,189 $ 100,953,062 $ 93,729,330
2.5% of Total Taxable Assessed Base in Excess of
Total Outstanding and New General Obligation Debt $ 108,293,171 $ 9 6,458,402 $ 8 6,181,229 $ 9 1,181,243 $ 96,782,676
CALCULATION PER SECOND FINANCIAL CRITERIA:
The sum of all outstanding and new general obligation and/or
bonded debt is $3,000 or less per capita.
Total County Population (4) 4 7,091 48,650 47,899 47,798 4 8,650
$3,000 Per Capita $ 3 ,000 $ 3,000 $ 3,000 $ 3,000 $ 3 ,000
$ 141,273,000 $ 145,950,000 $ 143,697,000 $ 143,394,000 $ 145,950,000
LESS Outstanding and New General Obligation Debt (1) $ 68,783,648 $ 9 3,064,880 $ 107,321,189 $ 100,953,062 $ 93,729,330
$3,000 Per Capita in Excess of
Total Outstanding and New General Obligation Debt $ 72,489,352 $ 5 2,885,120 $ 3 6,375,811 $ 4 2,440,938 $ 52,220,670
NOTES:
(1) See Table 5 - Total Taxable Assessed Value.
(2) See Note 9 A - Changes in Noncurrent Liabilities.
(3) General Obligation Debt includes debt relating to the Sanitary District, because such debt is backed by the full faith
and credit of the County, but excludes all capital leases, which are collateralized by the equipment purchased with
such leases.
(4) See Table 14 - Population.
In May, 2013, as described in Note 9 E, Queen Anne’s County adopted Resolution No. 13-04, thereby continuing
a local debt policy in compliance with Article 95, Section 22F of the Annotated Code of Maryland.
This policy requires that the County’s Director of Budget, Finance and Information Technology take the following steps:
(a) prepare a six-year capital project plan each year;
(b) propose an amount to be transferred from the General Fund operating balance to the General Capital Projects
Fund to serve as pay-as-you-go funding in the latter Fund, in order to lessen the need for future County debt;
(c) limit the County’s non-bonded indebtedness to $8.0 million for general operating expenses or capital
improvements;
(d) certify that the sum of outstanding general bonded debt and any new general obligation debt is 2.5% or less
of the total taxable assessed base and is $3,000 or less per capita; and
This policy also stipulates that although there is some flexibility as to the acceptable percentage of debt service to general fund
expenditures, and no absolute limit has been established by the rating agencies or the Government Finance Officers Association,
anything above 12% of total general fund expenditures would be a cause to carefully monitor debt service.
-196-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LOCAL DEBT LIMIT
LAST TEN FISCAL YEARS
Table 12-b
(CONTINUED)
2014 2015 2016 2017 2018
$ 7,540,259,768 $ 7,568,705,234 $ 7 ,626,510,532 $ 7 ,792,264,218 $ 7,974,395,138
2.5% 2.5% 2.5% 2.5% 2.5%
$ 188,506,494 $ 189,217,631 $ 190,662,763 $ 194,806,605 $ 1 99,359,878
$ 2,053,736 $ 3 ,540,295 $ 3,520,859 $ 3,217,479 $ 2,976,195
108,841,719 1 12,844,838 120,891,108 125,217,582 1 33,984,765
$ 110,895,455 $ 116,385,133 $ 124,411,967 $ 128,435,061 $ 1 36,960,960
$ 77,611,039 $ 7 2,832,498 $ 66,250,796 $ 66,371,544 $ 6 2,398,918
4 8,650 48,804 48,517 48,904 48,904
$ 3 ,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000
$ 145,950,000 $ 146,412,000 $ 145,551,000 $ 146,712,000 $ 1 46,712,000
$ 110,895,455 $ 116,385,133 $ 124,411,967 $ 128,435,061 $ 1 36,960,960
$ 35,054,545 $ 3 0,026,867 $ 21,139,033 $ 18,276,939 $ 9,751,040
-197-

QUEEN ANNE'S COUNTY, MARYLAND
DEMOGRAPHIC AND ECONOMIC INFORMATION
PRINCIPAL EMPLOYERS
CURRENT FISCAL YEAR AND NINE YEARS AGO
Table 13
For the Fiscal Year Ended June 30, 2018
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 940 1 8.31%
Queen Anne's County Government 474 2 4.19%
Chesapeake College 455 3 4.02%
Paul Reed Smith Guitars 250 4 2.21%
Federal Resources Supply 245 5 2.17%
S.E.W. Friel 200 6 1.77%
Tidewater Direct 145 7 1.28%
AZZ Enclosures 135 8 1.19%
Genesis Healthcare 135 9 1.19%
Clinton Nurseries 130 10 1.15%
Total 3,109 27.48%
For the Fiscal Year Ended June 30, 2009
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 980 1 7.71%
Queen Anne's County Government 522 2 4.10%
S.E.W. Friel 275 3 2.16%
Paul Reed Smith Guitars 250 4 1.97%
Chesapeake College 225 5 1.77%
Safeway 185 6 1.45%
Reeb Millwork 170 7 1.34%
Kmart 150 8 1.18%
Genesis Healthcare 150 9 1.18%
Acme 150 10 1.18%
Total 3,057 24.04%
Source: Queen Anne's County Economic Development Office; Table 15.
-198-

QUEEN ANNE'S COUNTY, MARYLAND
DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Table 14
Average
Total Registered
Fiscal Personal Per Capita Unemployment Number of
Year Population (1) Income (2) Income (3) Rate (3) Pupils (4)
2009 47,091 $ 2 ,113,538,262 $ 44,882 7.00% 7 ,774
2010 48,650 1 ,721,674,850 35,389 7.00% 7 ,723
2011 47,899 1 ,722,448,040 35,960 7.20% 7 ,722
2012 47,798 1 ,672,547,616 34,992 6.50% 7 ,757
2013 48,650 1 ,757,238,000 36,120 6.40% 7 ,717
2014 48,650 1 ,771,687,050 36,417 5.10% 7 ,720
2015 48,804 1 ,854,356,784 37,996 4.90% 7 ,752
2016 48,517 1 ,862,664,664 38,392 3.90% 7 ,738
2017 48,904 1 ,894,198,632 38,733 3.80% 7 ,799
2018 48,904 1 ,936,256,072 39,593 3.90% 7 ,768
NOTES:
(1) Source: Queen Anne's County Division of Land Use and Zoning
(2) Personal income derived by multiplying population by per capita income.
(3) Source: Maryland Department of Labor, Licensing, and Regulation - as of June.
(4) Source: Queen Anne's County Board of Education.
-199-

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME EQUIVALENTS
LAST TEN FISCAL YEARS
Table 15
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Number of Exempt Employees 29 29 26 26 28 29 30 32 35 34
Number of Full Time Employees 464 450 400 386 391 393 416 431 439 450
Number of Part Time Employees (FTE) 18 17 10 9 8 7 3 3 4 3
Total County Government Employees 511 496 436 421 427 429 449 466 478 487
NOTES:
Source: Queen Anne's County Office of Budget, Finance and Information Technology.
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QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME ONLY BY FUNCTION
LAST TEN FISCAL YEARS
Table 16
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Governmental Activities:
General Government 89 87 77 74 82 77 81 83 87 76
Public Safety:
Police 52 50 49 53 56 58 58 59 61 62
Fire - Emergency Management Services 69 67 64 61 64 67 71 72 73 75
Detention Center 42 42 41 42 41 41 41 41 45 41
Animal Services 8 8 10 10 6 3 3 2 2 2
Public Works 85 79 61 51 51 54 58 61 59 75
Health 1 1 1 1 1 1 1 1 1 1
Social Services 38 37 32 36 32 36 38 42 41 39
Parks (1) 45 45 31 27 27 29 39 42 44 43
Conservation of Natural Resources 3 3 3 3 4 4 3 4 4 4
Economic/Community Development 10 9 7 3 6 2 3 6 5 10
Total Governmental Activities 442 428 376 361 370 372 396 413 422 428
Business-Type Activities:
Sanitary District 45 45 44 45 45 46 46 46 48 51
Bay Bridge Airport 3 3 3 3 1 1 1 1 1 2
Golf - - - - 1 1 1 1 1 1
Public Landings 3 3 3 3 2 2 2 2 2 2
Total Business-Type Activities 51 51 50 51 49 50 50 50 52 56
Total Full-Time County Employees 493 479 426 412 419 422 446 463 474 484
NOTES:
(1) Due to the consolidation of the Property Management and Recreation enterprise funds with the General Fund in
fiscal year 2013, the respective employees of those funds are now reported with the Parks function of the Governmental Activities.
- Only full-time County employees are represented in this Table; data relating to full-time equivalents
for part-time employees is not available at this time.
- Employees of the County's component units have been excluded from this table.
Source: Queen Anne's County Office of Budget, Finance and Information Technology.
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QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Table 17
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Governmental Activities:
General Government:
Planning & Zoning:
Number of commercial permits issued 40 35 27 99 75 51 52 50 47 55
Number of residential permits issued:
Single Family Permits 90 153 106 119 161 133 123 84 124 145
Multi Family Permits 13 28 4 20 21 12 - 1 29 -
Renovations and Additions Permits 324 304 295 207 312 327 270 303 323 339
Total residential permits issued 427 485 405 346 494 472 393 388 476 484
Public Safety:
Fire and Rescue:
Number of volunteer members 663 689 689 689 689 689 683 500 400 500
Police:
Uniformed Police Officers 54 54 55 59 61 61 64 64 64 68
Number of law violations:
Physical arrests 1,429 917 1,216 848 1,144 1,239 1,055 903 914 1,097
Traffic violations 8,276 6,183 5,760 5,818 5,915 6,514 6,030 8,002 7,183 12,384
Detention Center:
Detention Center Officers 37 39 40 38 40 41 41 39 38 42
Average yearly prison population 97 102 103 86 128 138 123 115 133 115
Public Works:
Wastewater Treated - Daily (mgd) 1.7 2.1 1.7 1.9 2.0 2.0 2.1 2.0 2.0 2.2
Education:
Number of Personnel
Teachers 528 533 530 537 546 550 575 575 572 569
Administrators 38 37 37 39 39 41 40 40 38 37
Support 338 336 310 300 294 344 295 296 304 300
Other 76 76 64 47 47 37 34 34 34 34
Number of Students 7,774 7,723 7,722 7,757 7,717 7,720 7,752 7,738 7,799 7,768
Number of High School Graduates 590 562 566 598 537 605 589 532 550 552
NOTES:
Source: Various County departments.
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QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Table 18
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Governmental Activities:
Public Safety:
Fire and Rescue:
Number of volunteer stations 10 10 10 10 9 9 9 9 9 9
Equipment:
Engines 16 17 17 17 18 17 16 16 16 16
Tankers 9 9 9 9 9 8 8 8 8 8
Aerial Units 4 5 5 5 5 4 4 5 5 4
Rescue Units 6 7 7 7 8 6 7 6 6 5
Brush Units 8 8 8 8 8 7 7 7 7 7
Air Units (MD State Police) 3 - - - - - - - - -
Boats 1 5 5 5 5 6 6 6 6 3
Ambulance/Medic Units 16 17 17 17 17 13 14 12 13 13
Cars/Other 17 22 22 22 22 25 25 25 16 14
Police:
Number of Stations 1 1 1 1 1 1 1 1 1 1
Number of Vehicles
Patrol 64 60 53 62 62 68 68 71 70 70
Other 13 17 21 3 3 12 15 10 9 14
Detention Center
Capacity 104 148 148 148 148 148 148 148 148 148
Public Works:
County Maintained Roads and Streets
Paved (miles) 539 540 540 540 541 543 543 540 549 549
Unpaved (miles) 12 12 12 12 12 12 12 12 12 12
County Owned Water and
Wastewater Facilities
Water
Miles of Mains 57 58 59 59 61 62 62 64 65 67
Water Treatment Plants 11 11 11 11 11 11 11 11 11 11
Booster Stations 2 2 2 2 2 2 2 2 2 2
Wastewater
Miles of Mains 116 117 118 118 120 121 122 128 136 151
Wastewater Treatment Plants 1 1 1 1 1 1 1 1 1 1
Wastewater Collection, Lift,
and Pumping Stations 31 31 31 31 31 31 31 31 32 32
Education:
Number of Schools
High Schools 2 2 2 2 2 2 2 2 2 2
Middle Schools 4 4 4 4 4 4 4 4 4 4
Elementary Schools 8 8 8 8 8 8 8 8 8 8
Parks and Recreation:
Parks 33 33 33 33 33 33 33 32 32 32
Park Acreage 2,633 2,915 2,915 2,915 2,915 2,915 2,915 2,915 2,915 3,085
Public Landings 20 20 21 21 19 20 20 19 20 20
Library:
Number of Libraries 3 3 3 3 3 3 3 3 3 3
NOTES:
Source: Various County departments.
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