Fiscal Year 2014 CAFR (PDF)

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

QUEEN ANNE'S COUNTY, MARYLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2014
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) 15-29
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 40-41
Enterprise Fund Financial Statements
Statement of Net Position 42-43
Statement of Revenues, Expenses, and Changes in Net Position 44-45
Statement of Cash Flows 46-47
Fiduciary Fund Statements
Statement of Fiduciary Net Position 48
Statement of Changes in Fiduciary Net Position 49
Notes to Financial Statements 50-102
REQUIRED SUPPLEMENTARY INFORMATION 103
Other Post-Employment Benefits (OPEB) Trust
Schedule of Funding Progress and Schedule of Participating Agencies' Contributions 104
Budgetary Comparisons for General Fund
General Fund
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 105-107

QUEEN ANNE'S COUNTY, MARYLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2014
TABLE OF CONTENTS (CONTINUED)
Page(s)
FINANCIAL SECTION (CONTINUED)
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
(SUPPLEMENTARY INFORMATION) 108
Non-Major Governmental Funds 109-111
Combining Balance Sheet 112-114
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 116-118
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budgetary Basis 120-125
Capital Projects Funds 127
Schedule of Appropriations and Expenditures 128-130
Non-Major Enterprise Funds 131-132
Combining Statement of Net Position 133
Combining Statement of Revenues, Expenses, and Changes in Net Position 134
Combining Statement of Cash Flows 135
Fiduciary Funds 136-137
Other Post-Employment Benefit Trust Fund
Combining Statement of Fiduciary Net Position 138
Combining Statement of Changes in Fiduciary Net Position 139
Agency Funds
Statement of Agency Funds Assets and Liabilities 141
Statement of Changes in Agency Funds Assets and Liabilities 142-143
Community Partnerships for Children Special Revenue Fund 145
Combining Balance Sheets - By Grantor 146-147
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
By Community Partnership Agreements (CPA) and
Non-Community Partnership Agreements (Non-CPA) 148-150
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budgetary Basis 152-153
STATISTICAL SECTION (UNAUDITED) 155
Table
1 Net Position by Component - Government-Wide 156-157
2a Changes in Net Position - Government-Wide 158-161
2b General Tax Revenues - Governmental Activities 162
3 Fund Balances - Governmental Funds 163
4 Changes in Fund Balances - Governmental Funds 164-165
5 Assessed Value of Taxable and Exempt Property 167
6a Real Property Tax Rates - County Direct Rate 168
6b Real Property Tax Rates - County Special Taxing Districts 169
6c Real Property Tax Rates - Overlapping Governments - Towns 170-171
7 Ten Highest Commercial Property Taxpayers 172
8 Property Tax Levies and Collections 173
9 Ratios of Outstanding Debt by Type 174
10 Ratios of General Bonded Debt Outstanding 175
11 Computation of Net Direct and Overlapping Debt 177
12a Computation of Legal Debt Margin 178-179
12b Computation of Local Debt Limit 180
13 Principal Employers 181
14 Demographic Statistics 182
15 County Government Employees - Full-Time Equivalents 184
16 County Government Employees - Full-Time Only by Function 185
17 Operating Indicators by Function 186
18 Capital Asset Statistics by Function 187

Introductory Section

OFFICE OF BUDGET AND FINANCE
Queen
The Liberty Building
Anne’s 107 North Liberty Street
Centreville, MD 21617
County
Telephone: (410) 758-4064
County Commissioners: Fax: (410) 758-3036
James J. Moran, At Large
Paul Comfort, District 1
Stephen Wilson, District 2 County Administrator: Gregg A. Todd
Robert Charles Buckey, District 3 Director of Budget & Finance: Jonathan R. Seeman
Mark A. Anderson, District 4 Chief Treasury Officer: Marie Lange
January 8, 2015
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,
2014.
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, 2014, 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, 2014, 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.
____________________________ ___________________________
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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.
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 48,650 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.
The appropriated annual budget is prepared by fund, function (e.g., public safety), and department (e.g.,
Detention Center). 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 on pages 105 to 107 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 on pages 120 to 125 and on pages 152 to 153.
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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 2014 rate for the County was 5.1%, compared to the state’s rate of 6.2%
and the U.S.’s rate of 6.1%. The 2014 average rate for the County was 5.4%.
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 top 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 remained fairly constant in fiscal year 2014, decreasing by 1.3%, from $65.6 million in fiscal
year 2013 to $64.7 million in fiscal year 2014. Property tax revenue is projected to remain constant into fiscal
year 2015 with revenue projected to be less than 1.0% below the 2014 fiscal year level. Local income tax is
the County’s other main revenue source. Income tax collections increased by 2.3% in fiscal year 2014, from
$39.4 million in fiscal year 2013 to $40.3 million in fiscal year 2014. The increase resulted from an increase
in the distributions received from the State. The projected income tax revenue for fiscal year 2015 is $41.9
million, which is $1.6 million more than the income tax revenue received in fiscal year 2014.
For the past several years, County revenues related to housing activity have continued to be affected by the
economic downturn affecting real estate values that began in fiscal year 2009. Although recordation tax
revenue, a leading indicator of the health of the local real estate market, experienced positive growth in fiscal
year 2013, compared to 2012; there was a decrease of 4.1% in the recordation tax revenue comparing fiscal
year 2014 to 2013. Recordation tax revenue decreased from $4.6 million in fiscal year 2013 to $4.4 million
in 2014. Recordation tax revenue is expected to remain constant over the next fiscal year.
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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. The Ordinance requires the
County to maintain a Rainy Day Fund for contingencies in an amount equal to 7% of the following year’s
budgeted general fund operating revenues. The County funded the Rainy Day Fund with the required
amount of $8,235,928 in fiscal year 2014.
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. The Resolution requires the County to fund the Special Fund by the
amount that General Fund revenues and transfers exceed General Fund expenditures, not to exceed
$1,000,000 in any fiscal year. The transfer to the Special Fund shall only be made after the requirements of
the Rainy Day Fund have been met. The Special Fund shall not, in any event, exceed a total of $4,000,000.
The County funded the Special Fund with the required amount of $1,000,000 in fiscal year 2014.
Capital Projects - The County Commissioners’ six-year capital program, starting with fiscal year 2015,
prioritizes capital expenditures over these years to meet the County’s needs. The six-year program includes:
$52.7 million for various school related projects (includes $28.9 million for the construction of a new high
school); $48.4 million for various Sanitary District projects (includes the Southern Kent Island Sewer Service
at $36.7 million); $27.2 million for administration and general services (includes $16.0 million for the new
courthouse and $8.0 million for the YMCA), and $10.4 million for emergency services.
FINANCIAL POLICIES
Bond Ratings - The financial policies and management practices of Queen Anne’s County were recognized
by two major rating agencies. Fitch Rating Service issued an AA+ bond rating and Moody’s issued a rating
of Aa2.
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 and Finance 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.
For fiscal year 2014, Queen Anne’s County general obligation debt was 1.46% of the total taxable assessable
base, and the per capita debt measurement was $2,260. The debt service was 10.0% of the general fund
operating 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.
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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, 2013. 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 fifteen consecutive years (fiscal years 1999-2013). 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, James Griffin, Teresa
Ward, and Sheldon Hudson. Their dedication and professionalism in the preparation of Queen Anne’s
County financial statements has resulted in consistently accurate and transparent financial reporting. Special
recognition is also given to George Harvey for his technical and creative input, including the cover design.
Respectfully submitted,
Jonathan R. Seeman
Director of Budget and Finance
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QUEEN ANNE’S COUNTY, MARYLAND
GOVERNMENTAL ORGANIZATION
CERTAIN ELECTED AND OTHER OFFICIALS
AS OF JUNE 30, 2014
CERTAIN ELECTED OFFICIALS
County Commissioners James J. Moran, At Large
David L. Dunmyer, District 1
Bob Simmons, District 2
Philip L. Dumenil, District 3
David Olds, 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 J. Steve Cohoon
Director of Community Services Catherine R. Willis
Director of Budget and Finance Jonathan R. Seeman
Chief Treasury Officer Marie K. Lange
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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-10-

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, 2014, 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.
-11-

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 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, 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 the County, as of June 30, 2014, 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information for the general
fund, other post-employment benefits (OPEB) trust schedule of funding progress and schedule
of participating agencies’ contributions, 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
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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
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
January 7, 2015, 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 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
January 7, 2015
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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, 2014. 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 on pages 32 to 35 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, with basic statements found on pages 36 to 49.
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, economic development incentive, community partnerships for
children, dredging special assessments, Kent Narrows, law library, inmate welfare, agricultural transfer, rural
legacy, and purchase of development rights. A budgetary comparison statement has been provided for each of
these funds, which can be found within this report, as listed on 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 six 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 on pages 50 to 102 of this report.
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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 2014 2013 * 2014 2013 2014 2013
Current and Other Assets $ 91,422,865 $ 72,425,648 $ 22,223,066 $ 23,489,553 $ 113,645,931 $ 95,915,201
Capital Assets 150,349,444 143,539,192 94,304,327 94,824,534 244,653,771 238,363,726
Total Assets 241,772,309 215,964,840 116,527,393 118,314,087 358,299,702 334,278,927
Total Deferred Outflows of Resources 1,084,125 1,285,286 46,414 54,149 1,130,539 1,339,435
Noncurrent liabilities 143,155,147 120,884,417 20,402,862 20,976,914 163,558,009 141,861,331
Other liabilities 7,703,760 6,909,177 1,650,842 1,152,134 9,354,602 8,061,311
Total Liabilities 150,858,907 127,793,594 22,053,704 22,129,048 172,912,611 149,922,642
Total Deferred Inflows of Resources 1,778,849 2,206,744 1,407,385 1,840,188 3,186,234 4,046,932
Net position:
Net investment in capital assets 127,369,959 121,246,426 79,783,160 78,693,078 207,153,119 199,939,504
Restricted amounts 17,616,132 15,691,080 3,110,033 3,176,328 20,726,165 18,867,408
Unrestricted amounts (deficit) (54,767,413) (49,687,718) 10,219,525 12,529,594 (44,547,888) (37,158,124)
Total Net Position $ 90,218,678 $ 87,249,788 $ 93,112,718 $ 94,399,000 $ 183,331,396 $ 181,648,788
* Restated for prior period adjustment (see Note 19).
The County’s total current and other assets increased by $17.7 million, or 18.5 percent, to $113.6 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 2014 by $183.3 million.
Net position is divided into three categories: net investment in capital assets; restricted amounts; and
unrestricted amounts. By far the largest portion, $207.2 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 $67.7 million at June 30, 2014. Absent the effect of this relationship, the
County would have reported positive unrestricted amounts of $23.1 million on its government-wide financial
statements, rather than the negative unrestricted net assets of $44.5 million reported herein. For a multi-year
view of this calculation, see the Footnote presented in Table 1 of the Statistical Section.
An additional $20.7 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: $9.2 million related
to general government services; $3.6 million restricted for educational purposes; $3.5 million for
economic/community development; $756 thousand for public safety; $618 thousand for conservation of
natural resources; and an additional $4 thousand for other restrictions. For business-type activities, this amount
includes $2.4 million restricted to meet Sanitary District debt covenants and $753 thousand restricted by
Sanitary District developer exaction project requirements.
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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.
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 2014 2013 * 2014 2013 2014 2013
Revenues:
Program revenues:
Charges for services $ 6,580,425 $ 5,718,871 $ 9,111,680 $ 8,983,140 $ 15,692,105 $ 14,702,011
Operating grants and contributions 4,786,443 5,841,172 128,859 207,135 4,915,302 6 ,048,307
Capital grants and contributions 3,167,069 2,698,872 672,725 4,540,242 3,839,794 7 ,239,114
General revenues:
Property taxes 64,712,683 65,591,225 - - 64,712,683 6 5,591,225
Local income tax 40,899,804 35,769,303 - - 40,899,804 3 5,769,303
Other local taxes
Admission and amusement taxes 155,336 160,516 - - 155,336 1 60,516
Recordation taxes 4,446,658 4,635,789 - - 4,446,658 4 ,635,789
Hotel taxes 447,970 470,139 - - 447,970 4 70,139
County transfer taxes 1,461,174 1,351,064 - - 1,461,174 1 ,351,064
Investment income 95,286 107,095 343,568 356,374 438,854 4 63,469
Gain on sale of capital assets 346,765 163,426 - - 346,765 1 63,426
Miscellaneous 877,629 1,051,760 793,951 855,504 1,671,580 1 ,907,264
Total Revenues 127,977,242 123,559,232 11,050,783 14,942,395 139,028,025 138,501,627
Expenses:
Governmental Activities:
General government 14,133,149 1 3,639,728 - - 14,133,149 1 3,639,728
Public safety 26,666,211 2 6,174,144 - - 26,666,211 2 6,174,144
Public works 12,365,647 1 1,891,013 - - 12,365,647 1 1,891,013
Health 2,083,201 1 ,812,920 - - 2,083,201 1 ,812,920
Social services 5,040,139 5 ,560,196 - - 5,040,139 5 ,560,196
Education 54,882,430 4 9,459,783 - - 54,882,430 4 9,459,783
Libraries 1,336,098 1 ,304,076 - - 1,336,098 1 ,304,076
Conservation of natural resources 2,395,762 8 38,775 - - 2,395,762 8 38,775
Economic and Community development 1,528,035 1 ,108,912 - - 1,528,035 1 ,108,912
Interest and fiscal charges 3,987,943 4 ,042,236 - - 3,987,943 4 ,042,236
Business-type Activities:
Water and sewer - - 11,059,306 11,783,515 11,059,306 1 1,783,515
Airport - - 807,226 913,845 807,226 9 13,845
Golf course - - 515,325 538,420 515,325 5 38,420
Public landings and marinas - - 544,945 535,837 544,945 5 35,837
Total Expenses 124,418,615 115,831,783 12,926,802 13,771,617 137,345,417 129,603,400
Increase (Decrease) in Net Position before Transfers 3,558,627 7,727,449 (1,876,019) 1,170,778 1,682,608 8,898,227
Transfers in (out) (589,737) (337,843) 589,737 359,277 - 21,434
Increase (Decrease) in Net Position 2,968,890 7,389,606 (1,286,282) 1,530,055 1,682,608 8 ,919,661
Net Position - Beginning of Year 87,249,788 79,860,182 94,399,000 92,868,945 181,648,788 1 72,729,127
Net Position - End of Year $ 90,218,678 $ 87,249,788 $ 93,112,718 $ 94,399,000 $ 183,331,396 $ 181,648,788
* Restated for prior period adjustment (see Note 19).
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Governmental activities:
Revenues for governmental activities were $128.0 million for fiscal year 2014. The following chart depicts
revenues by source for governmental activities:
Revenues by Source ‐
Governmental Activities
For the Year Ended June 30, 2014
Gain on Sale of Capital
County transfer taxes
Assets
1.14%
0.27% Miscellaneous
Hotel taxes Investment 0.69%
Recordation taxes 0.35% Income
3.47% 0.07% Charges for services
5.14%
Admission and
amusement taxes Operating, capital &
0.12% restricted grants
6.22%
Local income tax
31.96%
Property taxes
50.57%
 Taxes comprise the largest source of County revenue, totaling $112.1 million (87.6 percent) of total
revenue for fiscal year 2014. Of that amount, property and local income tax together yielded $105.6
million (82.5 percent) of all revenue. Each County sets its own property and income tax rates, within
parameters established by the State. For fiscal year 2014, 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 $6.6 million, reflect fees charged to County citizens. These primarily
support education ($1.7 million or 26.2 percent), general government ($1.5 million or 22.8 percent),
public works ($1.4 million or 21.7 percent), and public safety ($1.3 million or 19.6 percent).
 Operating grants and contributions, totaling $4.8 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 42.4 percent) and public safety ($1.1 million or 22.6 percent).
 Capital grants and contributions, totaling $3.2 million, reflect contributions from Federal and State
agencies, as well as developers. Public works benefited the most from capital grants and contributions
during the year ($2.2 million or 70.1 percent).
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Expenses for all governmental activities were $124.4 million for fiscal year 2014. The following chart depicts
expenses by function for governmental activities:
Expenses ‐
Governmental Activities
For the Year Ended June 30, 2014
Economic and
Community
Interest and fiscal
development
charges
1.23%
3.21%
Conservation of
natural resources
1.93% General government
11.36%
Libraries
1.07%
Public safety
21.43%
Public works
Education
9.94%
44.11%
Health
Social services 1.67%
4.05%
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 $54.9 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 2014 2013 * 2014 2013 2014 2013
Education $ 54,882,430 $ 49,459,783 $ 1,721,379 $ 1,052,691 $ (53,161,051) $ (48,407,092)
Public Safety 26,666,211 2 6,174,144 2,650,661 2,965,678 (24,015,550) (23,208,466)
General Government 14,133,149 1 3,639,728 2,696,910 2,105,551 (11,436,239) (11,534,177)
Public Works 12,365,647 1 1,891,013 4,358,861 3,949,040 (8,006,786) (7,941,973)
Social Services 5,040,139 5 ,560,196 2,159,604 2,736,901 (2,880,535) (2,823,295)
Conservation of Natural Resources 2,395,762 8 38,775 252,991 463,298 (2,142,771) (375,477)
Economic and Community Development 1,528,035 1 ,108,912 693,531 985,756 (834,504) (123,156)
Other 7,407,242 7 ,159,232 - - (7,407,242) (7,159,232)
Total $ 124,418,615 $ 115,831,783 $ 14,533,937 $ 14,258,915 $ (109,884,678) $ (101,572,868)
* Restated for prior period adjustment (see Note 19).
Of the total cost of $124.4 million for governmental activities, $14.5 million (11.7 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 $6.6 million,
while governments and other organizations that benefited indirectly from these programs contributed operating
grants of $4.8 million and capital grants of $3.2 million.
County taxpayers paid for most of the remaining $109.9 million in net program costs, through a variety of
County taxes, for a total of $112.1 million. Net program costs of services provided to the public, in order of
net cost, were: $53.2 million for education; $24.0 million for public safety; $11.4 million for general
government; $8.0 million for public works; $2.9 million for social services; $2.1 million for conservation of
natural resources; $835 thousand for economic and community development; and $7.4 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 2014, governmental activities increased the County’s net position overall by
$3.0 million, compared to an increase of $7.4 million in fiscal year 2013. The following discussion explains
changes in net position relative to the prior fiscal year.
Revenues for governmental activities increased by $4.4 million (3.6 percent). The following key revenues
changed, when compared to the prior fiscal year:
 Local income tax increased by $5.1 million (14.3 percent), from $35.8 million to $40.9 million. The
increase was the result of the fluctuation in the income tax reserve amounts held by the State over the
past several years. A possible explanation of the reserve fluctuations is that taxpayers anticipated an
increase to the 2013 capital gains tax rate. This potential rate increase may have influenced the sales
of investments in 2012 versus 2013.
 Operating grants and contributions decreased by $1.0 million (18.1 percent), from $5.8 million in
fiscal year 2013 to $4.8 million in fiscal year 2014. Key factors for this change are:
o Social Services decreased by $587 thousand (22.5 percent). A significant portion of this decrease
was the result of additional grant funding received for Community Partnerships in fiscal year
2013 that wasn’t received in the current year. The State encouraged Community Partnerships to
use Earned Reinvestment Funds to fund programs for fiscal year 2013, rather than ending the
programs. The remaining increase is split amongst other social services programs.
o Conservation of Natural Resources decreased by $296 thousand (74.0 percent) as a result of
federal grant funding of $337 thousand received in fiscal year 2013 for the purchase of a land
conservation easement, which was not received in the current year.
o Public Safety decreased by $247 thousand (18.6 percent) as a result of federal grant funding of
$381 thousand received in fiscal year 2013 for the Eastern Shore Alliance. This grant ended in
2013 and no additional grant funding was received in fiscal year 2014. This decrease was offset
by miscellaneous increases in other grants.
 Charges for Services increased by $862 thousand (15.1 percent), from $5.7 million in fiscal year 2013
to $6.6 million in fiscal year 2014. Of this increase, $669 thousand related to an increase in school
impact fee revenue.
Expenses for governmental activities increased by $8.6 million (7.4 percent) and transfers out to business-type
activities increased by $252 thousand. Key positive and negative expense changes, in order of relative
importance, are:
 Education expenses increased by $5.4 million (11.0 percent). The majority of the increase was the
result of the allocation to the Board of Education increasing by $3.0 million in fiscal year 2014. The
remaining increase was the result of Board of Education related capital projects, such as the
renovation of Stevensville Middle School.
 Conservation of Natural Resources increased by $1.6 million (185.6 percent) due to easement
acquisitions in fiscal year 2014 compared to no acquisitions in 2013. Land development easements
acquired in the Rural Legacy, Agricultural Transfer, and Purchase of Development Rights programs
totaled $1.6 million in fiscal year 2014, however there were not any easements purchased for these
programs in fiscal year 2013. Generally, the timing of easement purchases is affected by the
evaluation process of the identified land, as well as the availability of State funds.
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Business-type activities:
Revenues, transfers in, and expenses for business-type activities were $11.1 million, $590 thousand, and $12.9
million, respectively, for fiscal year 2014. 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, 2014
Investment
income Miscellaneous
3.11% 7.19%
Operating &
capital grants
Charges for
& contributions
services
7.25%
82.45%
Expenses by Service ‐
Business‐Type Activities
For the Year Ended June 30, 2014
Public
Golf course landings and
3.99% marinas
4.22%
Airport
Water and
6.24%
sewer
85.55%
Business-type activities decreased the County’s net position altogether by $1.3 million in fiscal year 2014,
which is a difference of $2.8 million compared to the prior year’s increase of $1.5 million. The fiscal year
2014 change in net position resulted primarily from:
 Capital grants and contributions decreased by $3.9 million (85.2 percent), from $4.5 million in fiscal
year 2013 to $673 thousand in fiscal year 2014. This decrease was the result of the timing of capital
projects for the Sanitary District and the Bay Bridge Airport. The capital grants and contributions
related to the Sanitary District decreased by $1.4 million due to funds received in the prior year for the
Gibson’s Grant and Ellendale developments. For the Airport, there was a decrease of $2.5 million as
a result of the timing of various capital projects.
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 Operating expenses before transfers decreased by $845 thousand (6.1 percent), from $13.8 million in
fiscal year 2013 to $12.9 million in fiscal year 2014, for all business-type activities. The decrease is a
result of several factors. The majority of the decrease relates to the Sanitary District, which decreased
by $724 thousand. In fiscal year 2013, the Sanitary District had a loss on disposal of $963 thousand
and for fiscal year 2014, there was no loss on disposal. Fixed assets are reviewed by each department
once every three years and obsolete assets are written off. For the Sanitary District, this process
occurred in fiscal year 2013 and resulted in this $963 thousand loss on disposal.
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 $75.6 million, compared to $62.1 million for the prior year. Approximately
9.3 percent of this total ($7.0 million) constitutes unassigned fund balance, which is available for spending.
The total unassigned fund balance of $7.0 million is comprised of $7.1 million of positive unassigned fund
balance for the general fund, reduced by negative unassigned fund balances of $116 thousand in the non-major
governmental funds. Additional detail on the negative unassigned balances can be found in Note 15 on page
99.
The nonspendable fund balance ($6.0 million), at 7.9 percent of the total fund balance, is not available for
spending and includes amounts related to inventory, prepaid expenses, and loans receivable. Restricted fund
balance of $30.2 million (39.9 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 $8.2 million for
the rainy day fund. Committed fund balance of $5.2 million (6.9 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 $1.0 million for the Special Fund.
The remaining 36.0 percent of fund balance ($27.2 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 $18.4 million, which is an increase of $2.4 million
from the fiscal year 2013 balance of $16.0 million.
Of the total $18.4 million in fund balance, $7.1 million is unassigned, meaning that there are no constraints on
how the funds can be spent. In fiscal year 2013, the County Commissioners adopted Ordinance No. 12-21 for
the purpose of re-establishing the Rainy Day Fund, and requires the County to maintain a Rainy Day Fund for
contingencies in an amount equal to 7% of budgeted General Fund operating revenues. As a result of that
Ordinance, $8.2 million of rainy day funds are included in the General Fund’s restricted fund balance of $8.4
million for fiscal year 2014. The remaining fund balance is comprised of $480 thousand in nonspendable, $1.2
million in committed, and $1.3 million of assigned.
For further explanations of General Fund revenues and expenditures, see the General Fund Budgetary
Highlights section of this MD&A.
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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, 2014, the General Capital Projects Fund has a total fund balance of $39.4 million, compared to
$30.8 million at the end of the prior fiscal year. The $39.4 million in total fund balance is comprised of $1.2
million of nonspendable fund balance, $12.9 million in restricted fund balance, mainly for unspent bond
proceeds, $3.3 million of fund balance committed for specific projects, and $22.0 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, and are financed mostly
from roads-related capital grants and roads benefit assessments.
As of June 30, 2014, the Roads Capital Projects Fund has a total fund balance of $4.4 million, compared to
$3.8 million at the end of the prior fiscal year. Of this total $4.4 million fund balance, $3.6 million has been
assigned to fund ongoing projects, while $779 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 2014
amounted to $10.6 million, which is $2.2 million less than the prior year.
Total net position of the Sanitary District amounted to $70.8 million at the end of fiscal year 2014, which
decreased by $1.4 million when compared to the prior year. A large portion of the decrease relates to the costs
associated with other post-employment benefits (OPEB), which totaled $1.0 million in fiscal year 2014 for the
Sanitary District.
The unrestricted net position of the Bay Bridge Airport Enterprise Fund at year end amounted to negative
$512 thousand compared to a negative $422 thousand at the end of the prior fiscal year, reflecting a decrease
of $90 thousand.
Total net position of the Bay Bridge Airport amounted to $15.9 million at the end of fiscal year 2014, which
was a slight increase from the prior year amount of $15.8 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 events. 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 on pages 105 through 107. The Schedule reports original and final budgets, as well as
the variance between actual events and final budgets.
Original to Final Budget Comparisons. The final expenditure budget for the General Fund, including transfers
out, totaled $116.6 million. Amendments increased spending authority by $2.7 million during fiscal year
2014, when compared to the original budget of $113.9 million.
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Major components of these expenditure budget increases are as follows:
 Budgeted Transfers Out to General Capital Projects and Roads Capital Projects increased by $2.8
million during the year. There are several capital projects in which the County plans to move
aggressively on, and would like to have fund balance available in the General and Roads Capital
Projects fund to cover a portion of the costs.
 Budgeted Miscellaneous Expenditures decreased by $1.4 million due to a variety of savings, mostly
associated with Insurance and Benefits. This savings was offset by increases in other departments.
Budget to Actual Comparisons. Actual revenues for the General Fund, including other financing sources and
before appropriated fund balance were less than final budgetary estimates by $56 thousand. Actual
expenditures, and other financing uses, were less than final budgetary appropriations by $2.5 million. The net
effect of these two disparities was a positive variance of actual to final budget of $2.5 million.
The most noteworthy differences between final budgeted amounts and actual amounts are summarized as
follows:
Revenues:
 Transfers In were $775 thousand less than the final budget (95.1 percent), as a result of the transfer in
from School Impact fees not made in the fiscal year. Management decided it was more advantageous
to leave the money in the Impact Fee Fund in anticipation of future board of education projects.
Expenditures:
 Final Budgeted Salaries and Benefits were $29.5 million for the year, while actual costs were $28.7
million. They were underspent at year-end by $803 thousand (2.8 percent). Of this amount, the parks
department was responsible for $271 thousand of the unspent portion and the roads department for
$252 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 $87.1 million for the year, while actual costs were
$85.4 million. These costs were lower than budget at year end by $1.7 million (2.0 percent).
Operating Charges include contracted services, supplies, debt service, transfers out, and other charges.
o Contracted Services were underspent by $383 thousand, with the largest savings realized by
parks ($106 thousand), roads ($85 thousand), and information technology ($75 thousand).
o Supplies were underspent by $326 thousand, largely due to savings by roads ($251 thousand).
o Other Charges were underspent by $692 thousand, primarily due to insurance costs being
underspent by $228 thousand due to savings in retiree health care costs. The remaining
savings for other charges were spread throughout the General Fund.
o Transfers Out were underspent by $347 thousand, primarily due to savings realized by the
Department of Aging ($166 thousand), the Department of Housing ($90 thousand) and the
Golf Course Enterprise Fund ($82 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, 2014 amounted to $244.7 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.
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Capital asset activities, net of depreciation, are summarized as follows:
Governmental Activities Business Type Activities Total
Capital Assets, Net of Depreciation 2014 2013 2014 2013 2014 2013
Land and Land Improvements $ 87,771,980 $ 8 4,363,221 $ 14,158,331 $ 14,158,331 $ 101,930,311 $ 98,521,552
Intangible Rights - Easements 821,819 7 86,819 6,140 6,140 827,959 792,959
Construction in Progress 4,577,269 2,118,314 4,724,659 2,950,830 9,301,928 5,069,144
Buildings 29,750,342 30,666,936 7,413,498 8,025,939 37,163,840 38,692,875
Improvements other than Buildings 7,762,975 6,523,721 8,318,916 8,686,182 16,081,891 15,209,903
Infrastructure 11,358,610 11,060,882 47,025,639 47,920,303 58,384,249 58,981,185
Auto, Machinery, and Equipment 8,306,449 8,019,299 12,657,144 13,076,809 20,963,593 21,096,108
Total $ 150,349,444 $ 1 43,539,192 $ 94,304,327 $ 94,824,534 $ 244,653,771 $ 238,363,726
Queen Anne’s County’s total investment in capital assets for the current fiscal year, net of depreciation,
increased by 2.6 percent, or $6.3 million. Of this amount, governmental investment in capital assets increased
by $6.8 million, while business-type investment in capital assets decreased by $520 thousand.
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.
Governmental Activities
Changes in Capital Assets 2013 Additions Transfers Retirements 2014
Land and Land Improvements $ 84,363,221 $ 2 ,518,519 $ 1,001,397 $ (111,157) $ 87,771,980
Intangible Rights - Easements 786,819 3 5,000 - - 821,819
Construction in Progress 2,118,314 3 ,791,377 (1,332,422) - 4,577,269
Buildings 41,715,513 3 2,534 - (31,253) 41,716,794
Improvements other than Buildings 8,093,474 1 ,427,497 56,435 - 9,577,406
Infrastructure 18,324,016 3 52,405 250,350 - 18,926,771
Auto, Machinery, and Equipment 29,023,039 1 ,885,736 24,240 (987,091) 29,945,924
Total Assets before depreciation 184,424,396 1 0,043,068 - (1,129,501) 193,337,963
Less Depreciation (40,885,204) (2,916,199) - 812,884 (42,988,519)
Total Assets after depreciation $ 143,539,192 $ 7 ,126,869 $ - $ (316,617) $ 150,349,444
Business-Type Activities
Changes in Capital Assets 2013 Additions Transfers Retirements 2014
Land and Land Improvements $ 14,158,331 $ - $ - $ - $ 14,158,331
Intangible Rights - Easements 6,140 - - - 6,140
Construction in Progress 2,950,830 1 ,773,829 - - 4,724,659
Buildings 14,703,860 - - - 14,703,860
Improvements other than Buildings 11,914,132 - - - 11,914,132
Infrastructure 72,288,836 8 26,073 - - 73,114,909
Auto, Machinery, and Equipment 23,164,051 708,094 - (27,000) 23,845,145
Total Assets before depreciation 139,186,180 3 ,307,996 - (27,000) 142,467,176
Less Depreciation (44,361,646) (3,822,053) - 20,850 (48,162,849)
Total Assets after depreciation $ 94,824,534 $ (514,057) $ - $ (6,150) $ 94,304,327
Noteworthy capital asset events during the current fiscal year for governmental activities included the
following:
 Land and Land Improvements increased by a net amount of $3.4 million. (a) Two parcels of land
situated along Love Point Road in Stevensville were donated to the County for future expansion of the
Cross Island Trail ($1.1 million); (b) Sonny Schultz Boulevard was completed in the Matapeake
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Business Park ($1.2 million); and (c) Upgrades to Perry’s Corner and Bennett Point Roads were
completed ($963 thousand). Additionally, the County sold a commercial lot within the Matapeake
Professional Park that had an historical cost of $111 thousand.
 Intangible Rights – Easements increased by $35 thousand. This increase relates directly to the
acquisition of the State Street recreational trail easement.
 Construction in Progress (CIP) increased by a net amount of $2.5 million. The following factors
contributed to this increase:
Costs there were reclassified from Construction in Progress to other capital asset accounts including:
(a) Sonny Schultz Boulevard in the Matapeake Business Park ($1.1 million); and (b) Carmichael Road
($154 thousand).
Major additions to Construction in Progress include: (a) Phase one of the radio system upgrade for the
Emergency Services Department ($3.2 million); (b) Engineering phase work for the new County
Complex ($185 thousand); and (c) Architectural services related to construction of the new
Courthouse ($147 thousand).
 Improvements Other than Buildings increased by $1.5 million. (a) Shoreline restoration and habitat
enhancement project at the Kent Narrows area was completed ($1.1 million); (b) Route 18 athletic
field lighting ($201 thousand); and (c) Parking lot expansion at the 4-H park ($120 thousand).
 Infrastructure increased by $603 thousand. (a) Sonny Schultz Boulevard was completed in the
Matapeake Business Park ($312 thousand); and (b) Perry’s Corner and Bennett Point Road
improvements ($241 thousand).
 Auto, Machinery and Equipment increased by $923 thousand. The following factors contributed to
this net increase:
Additions totaled $1.9 million and include: (a) Roads Department replacement vehicles and equipment
($418 thousand); (b) Solid Waste department vehicle and equipment replacement ($232 thousand); (c)
Emergency Services department vehicle and equipment replacement ($404 thousand); (d) General
Services and DPW Administration vehicle and equipment replacement ($86 thousand); (e) Sheriff’s
department vehicle and equipment replacement ($381 thousand); (f) Parks department vehicle &
equipment replacement ($139 thousand); and (g) security enhancements at the Circuit Court ($81
thousand).
Retired assets of $987 thousand included the following, the majority of which were fully depreciated:
(a) obsolete equipment no longer in use by the Solid Waste department ($281 thousand); (b) obsolete
emergency services equipment sold or discarded ($460 thousand); and (c) obsolete computer software
and hardware ($110 thousand).
Noteworthy capital asset transactions during the current fiscal year for business-type activities included the
following:
 Construction in Progress increased by $1.8 million. Major additions to construction in progress
included: (a) costs to construct sewer and water infrastructure along Postal Road ($1.3 million); and
(b) improvements to the Bay Bridge Airport property including the pier one road relocation, new
hangar construction, and apron construction ($431 thousand).
 Infrastructure increased by $826 thousand as commercial developers contributed water and sewer
infrastructure to be maintained by the County.
-27-

 Auto, Machinery and Equipment increased by $681 thousand. These assets were acquired primarily by
the Sanitary District as follows: (a) replacement generators and well pumps ($391 thousand); (b)
replacement vehicles ($164 thousand); and (c) excavating and other site work equipment ($106
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, and compensated absence obligations of
$163.6 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.
Of this $163.6 million in debt, $20.4 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 $3.1 million, which are
restricted to payment of the Sanitary District’s subsequent year’s debt. See Note 10 on pages 85 to 87 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
and Compensated Absences 2014 2013 * 2014 2013 2014 2013
Bonds, Notes, and Premiums $ 108,841,719 $ 9 3,041,595 $ 14,638,211 $ 16,312,391 $ 123,479,930 $ 109,353,986
Other Post-Employment Benefit Obligation 32,201,835 2 5,785,783 5,477,412 4,399,415 37,679,247 30,185,198
Compensated Absences 2,111,593 2 ,057,039 287,239 265,108 2,398,832 2,322,147
Total Long-term Debt $ 143,155,147 $ 1 20,884,417 $ 20,402,862 $ 20,976,914 $ 163,558,009 $ 141,861,331
* Restated for prior period adjustment (see Note 19).
During the 2014 fiscal year, the County’s total net debt increased by $21.7 million (15.3 percent). Of this
amount, governmental debt increased by $22.3 million (18.4 percent), while business-type debt decreased
by $574 thousand (2.7 percent). In fiscal year 2014, the County issued 2014 bonds totaling $22.4 million
and also signed a shore erosion loan for $16 thousand. In addition, total Other Post-Employment Benefit
Obligations increased by $7.5 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, unless authorized under specific legislation. Currently, approximately $7.0 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 2014, Queen Anne’s County Government received an “AA+” bond rating from Fitch Rating
Service and an “Aa2” bond rating from Moody’s Investors Service.
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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 2015 fiscal year:
 Property assessments are projected to increase by 0.42 percent over the previous year, based on State
Assessment Office values used to compute the Constant Yield rate.
 Income tax revenue is projected to increase to $41.9 million in fiscal year 2015, which is a 3.8%
increase over actual receipts for fiscal year 2014.
The following are a few of the highlights from the fiscal year 2015 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 $3 million above Maintenance of Effort in fiscal
year 2015;
o The pay for performance system will resume effective July 1, 2014;
o County employees shall receive a two and a half percent cost of living allowance as of July 1,
2014; and
o Funding will be provided for the construction of the County Complex and Circuit Courthouse
and also to enhance economic development and tourism.
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 Departments, Finance, Financial Reports and Forms,
Link to 2014 Comprehensive Annual Financial Report (CAFR)).
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-30-

Basic Financial Statements
-31-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
JUNE 30, 2014
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
Equity in Pooled Cash and Investments $ 55,060,487 $ 11,422,004 $ 66,482,491
Cash and Cash Equivalents - - -
Taxes Receivable (Net) 556,257 - 556,257
Accounts and Loans Receivable (Net) 6,623,374 576,519 7,199,893
Special Assessments (Net) 843,612 - 843,612
Internal Balances 652,146 (652,146) -
Due from Primary Government - - -
Due from Other Governments 12,790,863 216,077 13,006,940
Bond Interest Reimbursement Receivable - Build America Bond 96,479 3,950 100,429
Inventories 479,718 641,650 1,121,368
Prepaid Items 667 - 667
Restricted Assets:
Equity in Pooled Cash and Investments 14,319,262 8,554,378 22,873,640
Accounts Receivable (Net) - 32,719 32,719
Special Assessments Receivable (Net) - 1,427,915 1,427,915
Capital Assets:
Nondepreciable Assets 93,171,068 18,889,130 112,060,198
Depreciable Assets, Net 57,178,376 75,415,197 132,593,573
Total Assets 241,772,309 116,527,393 358,299,702
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 1,084,125 46,414 1,130,539
Total Deferred Outflows of Resources 1,084,125 46,414 1,130,539
LIABILITIES
Accounts Payable and Other Current Liabilities 5,081,394 964,976 6,046,370
Accrued Interest Payable 1,045,682 78,410 1,124,092
Due to Component Units 430,956 - 430,956
Due to Other Governmental Agencies 327,041 - 327,041
Unearned Revenue 818,687 545,248 1,363,935
Escrow Deposits - 62,208 62,208
Noncurrent Liabilities:
Due within One Year 9,522,323 1,546,355 11,068,678
Due in More than One Year 133,632,824 18,856,507 152,489,331
Total Liabilities 150,858,907 22,053,704 172,912,611
DEFERRED INFLOWS OF RESOURCES
Unavailable Assessments 903,580 1,407,385 2,310,965
Unavailable Fees 875,269 - 875,269
Total Deferred Inflows of Resources 1,778,849 1,407,385 3,186,234
NET POSITION
Net Investment in Capital Assets 127,369,959 79,783,160 207,153,119
Amounts Restricted for:
General Government 9,226,519 - 9,226,519
Education 3,553,959 - 3,553,959
Economic/Community Development 3,457,613 - 3,457,613
Public Safety 755,846 - 755,846
Conservation of Natural Resources 617,930 - 617,930
Social Services 4,265 - 4,265
Debt Service - 2,356,451 2,356,451
Capital Projects - 753,300 753,300
Other Purposes - 282 282
Unrestricted Amounts (Deficit) (54,767,413) 10,219,525 (44,547,888)
Total Net Position $ 90,218,678 $ 93,112,718 $ 183,331,396
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, 2014
(CONTINUED)
COMPONENT UNITS
BOARD OF FREE
EDUCATION LIBRARY
$ - $ -
10,506,540 503,550
- -
237,109 11,201
- -
- -
430,956 -
3,496,164 -
- -
22,519 -
15,533 17,941
- 621,379
- -
- -
11,725,200 29,850
146,414,333 1,074,054
172,848,354 2,257,975
- -
- -
11,206,479 46,057
- -
- -
40 -
391,756 -
- -
390,099 -
37,355,600 1,247,264
49,343,974 1,293,321
- -
- -
- -
155,582,563 1,103,904
- -
- -
- -
- -
- -
- -
- -
168,530 -
14,033 10,500
(32,260,746) (149,750)
$ 123,504,380 $ 964,654
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, 2014
PRIMARY GOVERNMENT
OPERATING CAPITAL
CHARGES FOR GRANTS AND GRANTS AND TOTAL
EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS REVENUE
PRIMARY GOVERNMENT
Governmental Activities
General Government $ 14,133,149 $ 1,500,273 $ 606,649 $ 5 89,988 $ 2,696,910
Public Safety 26,666,211 1,286,945 1,081,577 2 82,139 2,650,661
Public Works 12,365,647 1,425,012 712,550 2 ,221,299 4,358,861
Health 2,083,201 - - - -
Social Services 5,040,139 65,537 2,026,675 67,392 2,159,604
Education 54,882,430 1,721,379 - - 1,721,379
Library 1,336,098 - - - -
Conservation of Natural Resources 2,395,762 73,279 103,892 75,820 252,991
Economic/Community Development 1,528,035 508,000 255,100 (69,569) 693,531
Interest and Fiscal Charges 3,987,943 - - - -
Total Governmental Activities 124,418,615 6,580,425 4,786,443 3 ,167,069 14,533,937
Business-type Activities
Water and Sewer 11,059,306 8,341,848 90,000 6 65,268 9,097,116
Airport 8 07,226 49,061 2,420 7,457 58,938
Golf Course 5 15,325 297,293 - - 297,293
Public Landings and Marinas 5 44,945 423,478 36,439 - 459,917
Total Business-type Activities 12,926,802 9,111,680 128,859 6 72,725 9,913,264
Total Primary Government $ 137,345,417 $ 15,692,105 $ 4 ,915,302 $ 3 ,839,794 $ 24,447,201
COMPONENT UNITS
Board of Education $ 106,113,272 $ 1,477,633 $ 1 2,132,225 $ - $ 13,609,858
Free Library 2,121,476 7,914 208,313 - 216,227
Total Component Units $ 108,234,748 $ 1,485,547 $ 1 2,340,538 $ - $ 13,826,085
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, as previously reported
Adjustment to Beginning Net Position
Net Position - Beginning of Year, as Restated
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
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2014
(CONTINUED)
NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION
PRIMARY GOVERNMENT COMPONENT UNITS
GOVERNMENTAL BUSINESS-TYPE BOARD OF FREE
ACTIVITIES ACTIVITIES TOTAL EDUCATION LIBRARY
$ (11,436,239) $ - $ (11,436,239) $ - $ -
( 24,015,550) - ( 24,015,550) - -
( 8,006,786) - ( 8,006,786) - -
( 2,083,201) - ( 2,083,201) - -
( 2,880,535) - ( 2,880,535) - -
( 53,161,051) - ( 53,161,051) - -
( 1,336,098) - ( 1,336,098) - -
( 2,142,771) - ( 2,142,771) - -
( 834,504) - (834,504) - -
( 3,987,943) - ( 3,987,943) - -
(109,884,678) - (109,884,678) - -
- (1,962,190) ( 1,962,190) - -
- (748,288) (748,288) - -
- (218,032) (218,032) - -
- (85,028) (85,028) - -
- (3,013,538) ( 3,013,538) - -
$ (109,884,678) $ (3,013,538) $ (112,898,216) $ - $ -
$ - $ - $ - $ (92,503,414) $ -
- - - - (1,905,249)
- - - (92,503,414) (1,905,249)
64,712,683 - 64,712,683 - -
40,899,804 - 40,899,804 - -
155,336 - 155,336 - -
4,446,658 - 4,446,658 - -
447,970 - 447,970 - -
1,461,174 - 1,461,174 - -
- - - 87,330,144 1,445,641
95,286 343,568 438,854 1 7,918 3,315
346,765 - 346,765 - -
877,629 793,951 1,671,580 286,312 81,557
( 589,737) 589,737 - - -
112,853,568 1,727,256 114,580,824 87,634,374 1,530,513
2,968,890 (1,286,282) 1,682,608 (4,869,040) ( 374,736)
87,767,242 94,399,000 182,166,242 128,373,420 1,339,390
( 517,454) - ( 517,454) - -
87,249,788 94,399,000 181,648,788 128,373,420 1,339,390
$ 90,218,678 $ 93,112,718 $ 183,331,396 $ 123,504,380 $ 964,654
The accompanying notes to the basic financial statements are an integral part of this statement.
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QUEEN ANNE'S COUNTY, MARYLAND
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2014
MAJOR FUNDS NON-MAJOR TOTAL
GENERAL GENERAL ROADS GOVERNMENTAL GOVERNMENTAL
FUND CAPITAL CAPITAL FUNDS FUNDS
ASSETS
Cash and Cash Equivalents $ 16,187,060 $ 24,034,470 $ 4,622,216 $ 10,216,741 $ 5 5,060,487
Prepaid Items 667 - - - 667
Receivables
Taxes Receivable (Net) 395,269 160,988 - - 556,257
Accounts and Loans Receivable 130,207 1,232,228 16,259 5,244,680 6,623,374
Special Assessments (Net) - - 293,865 549,747 843,612
Due from Other Governments 6,810,520 794,794 - 385,549 7,990,863
Due from Other Funds 823,856 6 1,967 - - 885,823
Inventory 479,718 - - - 479,718
Restricted
Restricted Equity in Pooled Cash - 14,319,262 - - 1 4,319,262
Total Assets $ 24,827,297 $ 40,603,709 $ 4,932,340 $ 16,396,717 $ 8 6,760,063
LIABILITIES
Accrued Liabilities $ 3,382,336 $ 676,618 $ 172,321 $ 828,024 $ 5 ,059,299
Due to Other Funds - - - 233,677 233,677
Due to Component Units - 430,956 - - 430,956
Due to Other Governmental Agencies - - - 327,041 327,041
Unearned Revenue 549,537 7 9,323 - 189,827 818,687
Total Liabilities 3,931,873 1,186,897 172,321 1,578,569 6,869,660
DEFERRED INFLOWS OF RESOURCES
Unavailable Income Taxes 1,175,115 - - - 1,175,115
Unavailable Property Taxes 145,677 - - - 145,677
Unavailable Inter-County Bonds Receivable 1,153,125 - - - 1,153,125
Unavailable Benefit Assessments - - 353,833 549,747 903,580
Unavailable Fees - - - 875,269 875,269
Total Deferred Inflows 2,473,917 - 353,833 1,425,016 4,252,766
FUND BALANCES
Nonspendable 480,385 1,230,472 - 4,240,136 5,950,993
Restricted 8,375,368 12,857,183 - 8,967,787 3 0,200,338
Committed 1,157,360 3,317,781 779,252 - 5,254,393
Assigned 1,284,875 22,011,376 3,626,934 301,009 2 7,224,194
Unassigned 7,123,519 - - (115,800) 7,007,719
Total Fund Balances 18,421,507 39,416,812 4,406,186 13,393,132 7 5,637,637
Total Liabilities, Deferred Inflows and
Fund Balances $ 24,827,297 $ 40,603,709 $ 4,932,340 $ 16,396,717 $ 8 6,760,063
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, 2014
Total Fund Balance - Governmental Funds $ 7 5,637,637
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 4,800,000
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 96,479
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 $ 44,199,467
Infrastructure 4 4,394,332
Construction in Progress 4 ,577,269 93,171,068
ADD Depreciable capital assets
Buildings 4 1,716,794
Improvements other than Buildings 9,577,406
Machinery and Equipment 18,682,320
Automobiles and Trucks 11,242,170
Infrastructure 1 8,926,771
Reassignment of capital assets from Enterprise Fund 21,434
Less Accumulated depreciation (42,988,519) 57,178,376
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 145,677
ADD Income Taxes deferred in governmental funds 1,175,115
ADD Loans receivable deferred in governmental funds 1,153,125 2,473,917
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 (1,045,682)
SUBTRACT Liability for Retirement Incentive (22,095)
SUBTRACT Long-Term Liabilities Due within One Year
Accrued Compensated Absences (1,256,198)
Bonds and Notes Payable (8,266,125) (9,522,323)
SUBTRACT Long-Term Liabilities Due in More than One Year
Other Post-Employment Benefit Obligation (32,201,835)
Accrued Compensated Absences (855,395)
Bonds and Notes Payable (100,575,594) (133,632,824)
ADD Deferred Charge On Refunding 1,084,125
Total Net Position - Governmental Activities $ 90,218,678
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, 2014
MAJOR FUNDS NON-MAJOR TOTAL
GENERAL GENERAL ROADS GOVERNMENTAL GOVERNMENTAL
FUND CAPITAL CAPITAL FUNDS FUNDS
REVENUES
Taxes
Local Property Tax $ 64,666,451 $ - $ - $ 35,171 $ 64,701,622
Local Income Tax 40,326,921 - - - 40,326,921
Admission and Amusement Taxes 155,336 - - - 155,336
Recordation Taxes 2,978,677 889,685 - 5 78,295 4,446,657
Hotel Taxes 447,970 - - - 447,970
County Transfer Taxes 730,587 730,587 - - 1,461,174
State Shared Taxes 466,734 - 237,065 4 5,567 749,366
Licenses and Permits 1,080,891 - - - 1,080,891
Intergovernmental 1,873,173 1,748,963 9,547 1 ,957,301 5,588,984
Bond Interest Reimbursement - Build America Bond 383,777 - - - 383,777
Charges for Current Services 2,252,711 66,982 65,734 2 ,972,492 5,357,919
Fines and Forfeitures 66,869 100 - 7 4,646 141,615
Investment Income 53,640 6,130 21,420 1 4,096 95,286
Donations 8,595 - - 3 0,460 39,055
Miscellaneous 769,210 46,026 - 6 2,393 877,629
Total Revenues 116,261,542 3,488,473 333,766 5 ,770,421 125,854,202
EXPENDITURES
Current
General Government 9,558,654 1,080,062 - 10,773 10,649,489
Public Safety 21,353,765 415,308 - 497,385 22,266,458
Public Works 8,945,125 189,762 339,776 - 9,474,663
Health 2,030,740 - - - 2,030,740
Social Services 282,134 - - 3 ,192,752 3,474,886
Education 49,831,672 9,921,272 - - 59,752,944
Library 1,310,250 - - - 1,310,250
Conservation of Natural Resources 606,934 90,347 - 1 ,665,973 2,363,254
Economic/Community Development 431,860 68,127 - 806,529 1,306,516
Recreation 492,700 - - - 492,700
Intergovernmental 436,349 - - - 436,349
Miscellaneous 2,766,068 - - - 2,766,068
Capital Outlay - 6,911,096 1,747,991 1 0,288 8,669,375
Debt Service
Principal 7,132,797 - - 77,764 7,210,561
Debt Issuance Costs - 196,870 - - 196,870
Interest and Fiscal Charges 3,500,779 - - 451 3,501,230
Total Expenditures 108,679,827 18,872,844 2,087,767 6 ,261,915 135,902,353
Excess of Revenues Over (Under) Expenditures 7,581,715 (15,384,371) (1,754,001) (491,494) ( 10,048,151)
OTHER FINANCING SOURCES (USES)
Issuance of Debt - 21,186,100 1,203,900 1 5,542 22,405,542
Bond Premiums - 1,118,097 - - 1,118,097
Proceeds of Capital Asset Disposals 109,100 349,659 - - 458,759
Insurance Proceeds 61,942 - - - 61,942
Capital Contributions - Developer - - 102,316 - 102,316
Transfers In 40,370 2,366,147 1,050,000 2 ,404,744 5,861,261
Transfers Out ( 5,359,016) (1,051,612) - (40,370) ( 6,450,998)
Other Financing Sources (Uses) ( 5,147,604) 23,968,391 2,356,216 2 ,379,916 23,556,919
Net Increase in Fund Balances 2,434,111 8,584,020 602,215 1 ,888,422 13,508,768
Fund Balances, July 1 15,987,396 30,832,792 3,803,971 1 1,504,710 62,128,869
Fund Balances, June 30 $ 18,421,507 $ 39,416,812 $ 4,406,186 $ 13,393,132 $ 75,637,637
The accompanying notes to the basic financial statements are an integral part of this statement.
-38-

-39-

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, 2014
Change in Fund Balances - Total governmental funds, per Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds $ 1 3,508,768
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 value of 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 $ 2 75,891
ADD capital assets resulting from force-in-kind expenditures 3,091
ADD capital assets resulting from general capital projects 6 ,916,096
ADD capital assets resulting from roads capital projects 1 ,747,990
ADD capital asset donations and transfers 1 ,100,000
SUBTRACT book value of disposed capital assets, net of accumulated depreciation (316,617)
SUBTRACT current year depreciation expense (2,916,199)
Net Increase in Capital Assets 6,810,252
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 current year's bond receivable 4 ,800,000
4,800,000
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.
ADD current year's bond interest reimbursement receivable - Build America Bond 96,479
SUBTRACT prior year's bond interest reimbursement receivable - Build America Bond (106,466)
( 9,987)
Liability for retirement incentive
As part of the retirement incentives offered in fiscal years 2011 and 2012, retirees were given
a certain period of health insurance at no cost, rather than the normal premium.
The maxium period of no cost health insurance was three 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.
SUBTRACT current year's liability for the retirement incentive (22,095)
ADD prior year's liability for the retirement incentive 48,434
26,339
The accompanying notes to the basic financial statements are an integral part of this statement.
CONTINUED
-40-

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, 2014
(CONTINUED)
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:
ADD current year's Property Tax Deferred Inflows $ 1 45,677
SUBTRACT prior year's Property Tax Deferred Inflows (134,615)
$ 11,062
ADD current year's Income Tax Deferred Inflows 1 ,175,115
SUBTRACT prior year's Income Tax Deferred Inflows (602,231)
572,884
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 liabilties.
ADD retirements and repayments made on long term debt
General Bonds Payable 7 ,285,615
Notes Payable 204,141
Bond Premiums 167,260
Deferred Refunding Costs (201,161)
7 ,455,855
SUBTRACT proceeds of debt (23,523,639)
SUBTRACT College reimbursement received (279,195)
ADD PHA reimbursement received 66,499
ADD County's allocation to College for debt 70,516
(16,209,964)
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. The net amount
by which these accruals (increased) over the prior period is as follows:
ADD prior year's Accrued Interest Payable 975,824
SUBTRACT current year's Accrued Interest Payable (1,045,682)
( 69,858)
ADD prior year's Accrued Compensated Absences 2 ,057,039
SUBTRACT current year's Accrued Compensated Absences (2,111,593)
( 54,554)
ADD prior year's Accrued Other Post Employment Benefit Obligation 25,785,783
SUBTRACT current year's Accrued Other Post Employment Benefit Obligation (32,201,835)
(6,416,052)
Change in Net Position - governmental activities, per Statement of Activities $ 2,968,890
The accompanying notes to the basic financial statements are an integral part of this statement.
-41-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
ENTERPRISE FUNDS
JUNE 30, 2014
SANITARY DISTRICT
SEWER WATER RESTRICTED
ASSETS OPERATIONS OPERATIONS FUND
Current Assets
Unrestricted
Equity in Pooled Cash $ 6 ,950,174 $ 3,727,067 $ -
Accounts Receivable (Net) 3 45,222 193,717 -
Due from Other Funds 3 77,557 - -
Due from Other Governments - - -
Bond Interest Reimbursement Receivable - Build America Bond - - -
Inventories 5 91,213 - -
Restricted
Restricted Equity in Pooled Cash - - 5 ,791,074
Restricted Accounts Receivable (Net) - - 11,102
Total Current Assets 8 ,264,166 3 ,920,784 5 ,802,176
Noncurrent Assets
Restricted
Special Assessments Receivable (Net) - - 1 ,114,713
Capital Assets
Intangible Rights - 6,140 -
Land, Improved and Unimproved 8 14,531 - -
Buildings and Improvements to Buildings 1 2,977,010 180,203 -
Improvements Other Than Buildings 1 ,615,474 128,152 -
Automotive Equipment 1 ,085,686 259,422 -
Equipment 2 0,409,439 1,430,131 -
Furniture and Fixtures 54,668 13,681 -
Infrastructure Improvements 5 1,294,326 21,820,583 -
Construction in Progress 1 ,000,354 342,007 -
Capital Assets before Depreciation 8 9,251,488 24,180,319 -
Less Accumulated Depreciation (35,945,880) (7,853,904) -
Total Capital Assets, Net of
Accumulated Depreciation 5 3,305,608 16,326,415 -
Total Noncurrent Assets 5 3,305,608 16,326,415 1 ,114,713
Total Assets 6 1,569,774 20,247,199 6 ,916,889
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding - - -
Total Deferred Outflows of Resources - - -
LIABILITIES
Current Liabilities
Payable from Unrestricted Assets
Accounts Payable 4 27,733 298,932 -
Accrued Interest Payable 54,416 - -
Escrow Deposits 49,558 - -
Due to Other Funds - - -
Unearned Revenue 5 43,662 - -
Current Portion of Compensated Absences 1 08,645 41,500 -
Current Portion of Bonds/Notes Payable 1 ,144,589 - -
Payable from Restricted Assets
Current Portion of Bonds Payable - - -
Total Current Liabilities 2 ,328,603 340,432 -
Noncurrent Liabilities
Payable from Unrestricted Assets
Compensated Absences 73,981 28,259 -
Other Post-Employment Benefit Obligation 3 ,865,236 1 ,169,660 -
Bonds/Notes Payable 1 1,369,256 - -
Total Noncurrent Liabilities 1 5,308,473 1 ,197,919 -
Total Liabilities 1 7,637,076 1 ,538,351 -
DEFERRED INFLOWS OF RESOURCES
Unavailable Water and Sewer Assessments - - 1 ,114,713
Total Deferred Inflows of Resources - - 1 ,114,713
NET POSITION
Net Investment in Capital Assets 4 0,791,763 16,326,415 -
Amounts Restricted for:
Debt Service - - -
Capital Projects - - 753,300
Other Purposes - - -
Unrestricted Amounts (Deficit) 3 ,140,935 2 ,382,433 5 ,048,876
Total Net Position $ 4 3,932,698 $ 18,708,848 $ 5,802,176
The accompanying notes to the basic financial statements are an integral part of this statement.
-42-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
ENTERPRISE FUNDS
JUNE 30, 2014
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ - $ 10,677,241 $ - $ 744,763 $ 11,422,004
- 538,939 2 6,607 10,973 576,519
- 377,557 - - 377,557
- - 194,395 21,682 216,077
- - 625 3,325 3,950
- 591,213 4 4,139 6,298 641,650
2 ,763,304 8,554,378 - - 8 ,554,378
21,617 32,719 - - 32,719
2 ,784,921 2 0,772,047 265,766 787,041 21,824,854
313,202 1,427,915 - - 1 ,427,915
- 6,140 - - 6,140
- 814,531 10,670,168 2 ,673,632 14,158,331
- 13,157,213 1,233,204 313,443 14,703,860
- 1,743,626 4,704,779 5 ,465,727 11,914,132
- 1,345,108 7 3,470 40,881 1 ,459,459
- 21,839,570 4 7,752 425,036 22,312,358
- 68,349 - 4,979 73,328
- 73,114,909 - - 73,114,909
- 1,342,361 3,382,298 - 4 ,724,659
- 113,431,807 20,111,671 8 ,923,698 142,467,176
- (43,799,784) (3,145,474) (1,217,591) (48,162,849)
- 69,632,023 16,966,197 7 ,706,107 94,304,327
313,202 7 1,059,938 16,966,197 7 ,706,107 95,732,242
3 ,098,123 9 1,831,985 17,231,963 8 ,493,148 117,557,096
- - 1 1,084 35,330 46,414
- - 1 1,084 35,330 46,414
- 726,665 204,694 33,617 964,976
813 55,229 7,636 15,545 78,410
- 49,558 1 2,650 - 62,208
377,557 377,557 313,110 339,036 1 ,029,703
- 543,662 - 1,586 545,248
- 150,145 2,152 18,582 170,879
- 1,144,589 4 6,532 133,394 1 ,324,515
50,961 50,961 - - 50,961
429,331 3,098,366 586,774 541,760 4 ,226,900
- 102,240 1,466 12,654 116,360
- 5,034,896 235,689 206,827 5 ,477,412
19,669 11,388,925 484,939 1 ,388,871 13,262,735
19,669 16,526,061 722,094 1 ,608,352 18,856,507
449,000 1 9,624,427 1,308,868 2 ,150,112 23,083,407
292,672 1,407,385 - - 1 ,407,385
292,672 1,407,385 - - 1 ,407,385
- 57,118,178 16,445,810 6 ,219,172 79,783,160
2 ,356,451 2,356,451 - - 2 ,356,451
- 753,300 - - 753,300
- - - 282 282
- 10,572,244 (511,631) 158,912 10,219,525
$ 2,356,451 $ 70,800,173 $ 15,934,179 $ 6,378,366 $ 93,112,718
The accompanying notes to the basic financial statements are an integral part of this statement.
-43-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
SANITARY DISTRICT
SEWER WATER RESTRICTED
OPERATIONS OPERATIONS FUND
OPERATING REVENUES
Charges for Services $ 5,307,368 $ 2,172,086 $ 471,466
Intergovernmental 90,000 - -
Bond Interest Reimbursement - Build America Bond - - -
Material Sales 6,149 7,331 -
Miscellaneous Revenues 35,800 142,646 -
Total Operating Revenues 5 ,439,317 2,322,063 471,466
OPERATING EXPENSES
Cost of Sales and Services
Collection 2 ,256,237 - -
Distribution - 180,080 -
Treatment 1 ,345,878 1,111,304 -
Shop 1 67,145 112,557 -
Airport - - -
Recreation - - -
Total Cost of Sales and Services 3 ,769,260 1,403,941 -
Administration and Inspection 722,122 497,675 -
Other Post-Employment Benefit Contributions 791,552 226,857 -
Depreciation 2 ,917,358 523,117 -
Total Operating Expenses 8 ,200,292 2,651,590 -
Operating Income (Loss) (2,760,975) ( 329,527) 471,466
NON-OPERATING REVENUES (EXPENSES)
Investment Income 93,603 80,087 121,954
Interest Expense (203,702) (5,469) -
Gain (Loss) on Disposal of Capital Assets 9,413 - -
Total Non-Operating Revenues (Expenses) (100,686) 74,618 121,954
Income (Loss) Before Contributions and Transfers (2,861,661) ( 254,909) 593,420
Capital Contributions, Fees and Grants 409,765 255,503 -
TRANSFERS
Transfers In 1 ,355,097 278,741 -
Transfers Out (15,000) (15,000) (1,053,562)
Net Transfers In (Out) 1 ,340,097 263,741 (1,053,562)
Change in Net Position (1,111,799) 264,335 (460,142)
Total Net Position - Beginning of Year 45,044,497 18,444,513 6,262,318
Total Net Position - End of Year $ 43,932,698 $ 18,708,848 $ 5,802,176
The accompanying notes to the basic financial statements are an integral part of this statement.
-44-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ 390,928 $ 8,341,848 $ 49,061 $ 7 20,771 $ 9,111,680
- 90,000 - 23,557 113,557
- - 2 ,420 12,882 1 5,302
- 13,480 303,712 41,136 358,328
- 178,446 228,211 28,966 435,623
390,928 8,623,774 583,404 8 27,312 10,034,490
- 2,256,237 - - 2,256,237
- 180,080 - - 180,080
- 2,457,182 - - 2,457,182
- 279,702 - - 279,702
- - 543,196 - 543,196
- - - 774,078 774,078
- 5,173,201 543,196 7 74,078 6,490,475
- 1,219,797 - - 1,219,797
- 1,018,409 1 1,937 47,651 1,077,997
- 3,440,475 234,009 1 47,569 3,822,053
- 10,851,882 789,142 9 69,298 12,610,322
390,928 ( 2,228,108) (205,738) (141,986) (2,575,832)
47,745 343,389 179 - 343,568
(7,666) (216,837) (18,084) (85,822) (320,743)
- 9,413 - ( 5,150) 4 ,263
40,079 135,965 (17,905) (90,972) 2 7,088
431,007 ( 2,092,143) (223,643) (232,958) (2,548,744)
- 665,268 7 ,457 - 672,725
1,053,562 2,687,400 364,280 1 72,348 3,224,028
( 1,550,729) ( 2,634,291) - - (2,634,291)
( 497,167) 53,109 364,280 1 72,348 589,737
(66,160) ( 1,373,766) 148,094 (60,610) (1,286,282)
2,422,611 72,173,939 15,786,085 6 ,438,976 94,399,000
$ 2,356,451 $ 70,800,173 $ 15,934,179 $ 6,378,366 $ 93,112,718
The accompanying notes to the basic financial statements are an integral part of this statement.
-45-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
SANITARY DISTRICT
SEWER WATER RESTRICTED
OPERATIONS OPERATIONS FUND
CASH FLOW FROM OPERATING ACTIVITIES
Receipts from customers and users $ 5,236,130 $ 2,155,449 $ 471,085
Receipts from other operating sources 131,949 149,977 -
Receipts from bond interest reimbursement - Build America Bond - - -
Payments to suppliers ( 1,883,630) ( 756,000) -
Payments to employees and on behalf of employees (2,484,730) ( 924,357) -
Net Cash Provided by Operating Activities 999,719 625,069 471,085
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in from other funds 1,355,097 278,741 -
Receipts from interfund loans 1,077 - -
Transfers to other funds ( 15,000) ( 15,000) ( 1,053,562)
Principal paid on interfund loans - - ( 4,142)
Net Cash Provided (Used) by Noncapital Financing Activities 1,341,174 263,741 ( 1,057,704)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from the disposition of capital assets 9,413 - -
Receipts from capital grants - - -
Principal paid on capital debt (1,144,080) ( 313,056) -
Interest paid on capital debt (211,017) ( 7,239) -
Acquisition and construction of capital assets (1,646,705) ( 564,556) -
Net Cash (Used) by Capital and Related Financing Activities (2,992,389) ( 884,851) -
CASH FLOWS FROM INVESTING ACTIVITIES
Net Cash Provided by Investing Activities - Investment Income 93,603 80,087 121,954
Net Increase (Decrease) in Cash and Cash Equivalents (557,893) 84,046 ( 464,665)
Balances - Beginning of the year 7,508,067 3,643,021 6,255,739
Balances - End of the year $ 6,950,174 $ 3,727,067 $ 5,791,074
Reconciliation of operating income (loss) to net cash
provided by operating activities
Operating income (loss) $ (2,760,975) $ ( 329,527) $ 471,466
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation 2,917,358 523,117 -
Effect of changes in operating assets and liabilities:
Accounts receivable, net (61,465) ( 16,637) ( 381)
Special assessments receivable, net - - 115,446
Operating grants receivable - - -
Build America Bonds Interest receivable - - -
Inventories and Prepaid Expenses (54,086) - -
Vendor accounts payable 164,471 217,148 -
Compensated absences 12,637 4,111 -
Other Post-Employment Benefit Obligation 791,552 226,857 -
Escrow deposits payable 19,592 - -
Deferred revenue collected in advance (29,365) - ( 115,446)
Net Cash Provided by Operating Activities $ 999,719 $ 625,069 $ 471,085
Noncash investing, capital and financing activities:
Donation of capital assets (infrastructure) by developers $ 409,765 $ 255,503 $ -
The accompanying notes to the basic financial statements are an integral part of this statement.
-46-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ 433,859 $ 8,296,523 $ 44,672 $ 723,492 $ 9,064,687
- 281,926 531,923 98,297 912,146
- - 2,484 13,226 15,710
- ( 2,639,630) ( 278,637) ( 445,650) ( 3,363,917)
- ( 3,409,087) ( 113,820) ( 310,697) ( 3,833,604)
433,859 2,529,732 186,622 78,668 2,795,022
1,053,562 2,687,400 364,280 172,348 3,224,028
377,557 378,634 313,110 339,036 1,030,780
( 1,550,729) ( 2,634,291) - - ( 2,634,291)
( 374,492) ( 378,634) ( 493,277) ( 306,731) ( 1,178,642)
( 494,102) 53,109 184,113 204,653 441,875
- 9,413 - 1,000 10,413
- - 119,242 - 119,242
( 56,158) ( 1,513,294) ( 44,583) ( 123,303) ( 1,681,180)
( 8,508) ( 226,764) ( 14,104) ( 76,457) ( 317,325)
- ( 2,211,261) ( 431,469) - ( 2,642,730)
( 64,666) ( 3,941,906) ( 370,914) ( 198,760) ( 4,511,580)
47,745 343,389 179 - 343,568
( 77,164) ( 1,015,676) - 84,561 ( 931,115)
2,840,468 20,247,295 - 660,202 20,907,497
$ 2,763,304 $ 19,231,619 $ - $ 744,763 $ 19,976,382
$ 390,928 $ ( 2,228,108) $ ( 205,738) $ ( 141,986) $ ( 2,575,832)
- 3,440,475 234,009 147,569 3,822,053
18,775 ( 59,708) ( 6,889) 3,587 ( 63,010)
341,513 456,959 - - 456,959
- - - 4,638 4,638
- - 64 344 408
- ( 54,086) 18,113 8,429 ( 27,544)
- 381,619 130,179 6,366 518,164
- 16,748 2,447 2,936 22,131
- 1,018,409 11,937 47,651 1,077,997
- 19,592 2,500 - 22,092
( 317,357) ( 462,168) - ( 866) ( 463,034)
$ 433,859 $ 2,529,732 $ 186,622 $ 78,668 $ 2,795,022
$ - $ 665,268 $ - $ - $ 665,268
The accompanying notes to the basic financial statements are an integral part of this statement.
-47-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF FIDUCIARY NET POSITION
PRIVATE PURPOSE TRUST, OTHER POST-EMPLOYMENT BENEFIT TRUST, AND AGENCY FUNDS
JUNE 30, 2014
PRIVATE
PURPOSE
TRUST FUND OTHER
TAX SALE POST-EMPLOYMENT AGENCY
DEPOSITS BENEFIT TRUST FUND FUNDS
ASSETS
Cash and Cash Equivalents $ 151,257 $ 2 ,112,365 $ 632,993
Total Assets 151,257 2 ,112,365 $ 632,993
LIABILITIES
Due to Other Governments - 1 56,561 $ 182,972
Deposits and Escrows - - 4 50,021
Total Liabilities - 1 56,561 $ 632,993
NET POSITION
Held in Trust $ 151,257 $ 1 ,955,804
The accompanying notes to the basic financial statements are an integral part of this statement.
-48-

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, 2014
PRIVATE
PURPOSE
TRUST FUND
TAX SALE
DEPOSITS
ADDITIONS
Total Additions - Tax Sale Collections in Excess of Tax Due $ 2 8,687
DEDUCTIONS
Distributions to Property Holders 48,504
Change in Assets ( 19,817)
NET POSITION HELD IN TRUST
Net Position-Beginning of Year 1 71,074
Net Position-End of Year $ 1 51,257
OTHER
POST-EMPLOYMENT
BENEFIT TRUST FUND
ADDITIONS
CONTRIBUTIONS
Employers $ 3 ,205,916
Members 9 72,575
TOTAL CONTRIBUTIONS 4 ,178,491
Investment Income 2 ,280
Total Additions 4 ,180,771
DEDUCTIONS
Claims Paid 3 ,736,307
Change in Assets 4 44,464
NET POSITION HELD IN TRUST
Net Position-Beginning of Year 1 ,511,340
Net Position-End of Year $ 1 ,955,804
The accompanying notes to the basic financial statements are an integral part of this statement.
-49-

QUEEN ANNE'S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
INDEX
Note
1 Summary of Significant Accounting Policies 51-62
2 Budgets and Budgetary Accounting 63
3 Cash, Investments and Investment Income 64-65
4 Accounts Receivable 66-67
5 Unearned Revenue 68
6 Capital Assets 69-73
7 Interfund Receivables and Payables 74
8 Interfund Transfers 75
9 Noncurrent Liabilities 76-84
10 Restricted Assets and Liabilities
and Fund Balances 85-87
11 Risk Management 88
12 Retirement Plans 89-91
13 Deferred Compensation Plan 91
14 Other Post-Employment Benefits 92-98
15 Deficit Equity Balances 99
16 Commitments and Contingencies 99-100
17 Joint Venture 100-101
18 Pollution Remediation Obligations 101-102
19 Prior Period Adjustment 102
-50-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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
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.
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
-51-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. REPORTING ENTITY (CONTINUED)
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.
For the most part, the effect of interfund activity has been removed from these statements.
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.
-52-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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; parks and recreation; 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.
-53-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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.
-54-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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 seventeen non-major governmental funds, which are used to
account for and report the proceeds of specific revenue sources. Included in the seventeen non-major governmental
funds are fourteen 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 6,900 customers.
Water Operations - This fund is used to account for the operation of the water supply system
serving approximately 4,200 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.
-55-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
Bay Bridge Airport – This fund is used to account for the operation of the County’s airport that serves
small, private aircraft.
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 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. Currently, the only other agency participating is Kent County,
Maryland.
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, mid-shore recycling, and abandoned property.
Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year’s
presentation.
GASB 62 Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB
and AICPA Pronouncements, eliminates a previous election that allowed financial statements for enterprise funds and
business-type activities to apply post-November 30, 1989 FASB Statements and Interpretations for the financial
statements to the extent that the FASB Statements and Interpretations did not conflict with or contradict GASB
pronouncements. The County has elected not to follow any other FASB guidance.
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.
-56-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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 ($1,000 for
computers) 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.
-57-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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 3 - 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
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.
Additional details regarding other post-employment benefits can be found in Notes 9 and 14.
Primary Government – 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, 2014, the other post-
employment benefit obligation amounted to $37,679,247, including both governmental ($32,201,835) and
business-type activities ($5,477,412).
Component Unit - Board of Education – For the year ended June 30, 2014, the other post-employment
benefit obligation for the Board of Education amounted to $34,096,789.
Component Unit – Free Library – For the year ended June 30, 2014, the other post-employment benefit
obligation for the Library amounted to $1,247,264.
-58-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
7) 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 $2,398,832 at June 30, 2014, including both governmental ($2,111,593) and
business-type activities ($287,239).
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, 2014 amounted to $1,079,661. Because payment of sick leave is contingent upon an
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.
8) 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 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, payments to the Bond Refunding
Agent and associated bond issuance costs are reported as other financing uses.
-59-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
9) Net Position/Fund Equity
In the government-wide financial statements, the County has reported an unrestricted net deficit of
$44,547,888. 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, 2014, the County has reported outstanding
general obligation debt related to assets held by the Board of Education amounting to $67,651,486 (of which
$62,979,838 has been spent and the remaining $4,671,648 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 $23,103,598.
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, 2014, 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 represent 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:
-60-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
9) Net Position/Fund Equity (continued)
Restricted Amounts
Governmental activities $ 1 7,616,132
Business-type activities:
Debt Service $ 2,356,451
Capital Projects 753,300
Other Purposes 282 3 ,110,033
Total Restricted Amounts $ 2 0,726,165
Note that unspent bond proceeds of $12,584,206 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.
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.
-61-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
10) 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.
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 State
Department of Assessments and Taxation without public notice and only after public hearings. The
County tax rate for the fiscal year ended June 30, 2014 was $0.8471 per $100 of assessed value.
E. IMPLEMENTATION OF NEW ACCOUNTING PRINCIPLES
The County adopted the provisions of two Governmental Accounting Standards Board Statements:
Statement No. 65, “Items Previously Reported as Assets and Liabilities”: This Statement establishes accounting and financial
reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were
previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that
were previously reported as assets and liabilities.
Statement No. 66, “Technical Corrections – 2012; an amendment of GASB Statements No. 10 and No. 62.” Adoption of this
Statement had no impact on the County’s financial statements.
In fiscal year 2015, the County plans to adopt Statement No. 68, “Accounting and Financial Reporting for Pensions;
and amendment of GASB Statement No. 27”, Statement No. 69, “Government Combinations and Disposals of
Government Operations” and Statement No. 70, “Accounting and Financial Reporting for Nonexchange Financial
Guarantees.”
-62-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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.
During the fiscal year, the Commissioners may adopt supplemental appropriations. For the year ended
June 30, 2014, supplemental appropriations were as follows:
Original Final
Supplemental Appropriations Budget Budget Increase
General Fund - expenditures and transfers $ 113,924,180 $ 116,587,737 $ 2,663,557
Special Revenue Funds that adopt annual budgets
Non-Major Funds that adopt annual budgets -
Department of Aging - expenditures 2,155,587 2,235,199 79,612
Housing and Community Services - expenditures 1,124,752 1,416,402 291,650
Community Partnerships for Children - expenditures 1,044,524 1,123,769 79,245
Fire Company Impact Fees - expenditures 200,500 387,449 186,949
Inmate Welfare Fund - expenditures 90,250 150,250 60,000
Agricultural Transfer - expenditures 40,000 111,791 71,791
Purchase of Development Rights - expenditures 34,000 1,572,640 1,538,640
Total Special Revenue Funds that adopt annual budgets $ 4,689,613 $ 6,997,500 $ 2,307,887
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, Economic Development
Incentive, Community Partnerships for Children, Dredging Special Assessments, Kent Narrows, Law Library, Inmate
Welfare, Agricultural Transfer, School Impact Fees Capital Projects, Fire Company Impact Fees Capital Projects, Parks
and Recreation Impact Fees Capital Projects, and Purchase of Development Rights Funds. 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.
-63-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME
A. DEPOSITS AND INVESTMENTS
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS
Cash and investments were as follows at year-end:
Collected
Carrying Bank Balances Total
Amount or Fair Value Collateral
Demand Deposit Accounts, Short-Term
Certificates of Deposit and Petty Cash $ 2 5,503,818 $ 25,578,033 $ 33,467,451
Investment in Maryland Local
Government Investment Pool (MLGIP) 6 6,748,928 66,746,177 68,081,100
$ 9 2,252,746 $ 92,324,210 $ 101,548,551
Cash and investments reconcile to the basic financial statements as follows:
Primary
Cash and Investments Government Fiduciary Total
Unrestricted
Equity in Pooled Cash and Investments $ 6 6,482,491 $ 2,896,615 $ 69,379,106
Restricted
Equity in Pooled Cash and Investments 2 2,873,640 - 22,873,640
$ 8 9,356,131 $ 2,896,615 $ 92,252,746
At year-end, the carrying amount of combined deposits was $25,503,818. The collected bank balances were
$25,578,033 and of those balances, $751,609 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.
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.
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 MLGIP seeks to maintain a
constant value of $1 per unit with unit value computed using the amortized cost method. In addition, the net asset value
of the pool, marked to market, is calculated and maintained on a weekly basis to ensure a $1 per unit constant value.
As of June 30, 2014, the County’s investments, 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.
-64-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
COMPONENT UNITS (BOARD OF EDUCATION AND LIBRARY)
Component Unit - Board of Education - At year-end, the carrying amount of deposits was $10,506,540, including
$317,000 in certificates of deposit and excluding the carrying amount of fiduciary funds. At June 30, 2014, the
Board has deposits of approximately $12 million with local banks. Of the total deposits, approximately $494,000 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 $621,379 certificate
of deposit, was $1,124,929, while collected bank balances were $1,156,606. Of the bank balances, $574,423 was
secured by the FDIC and $582,183 was secured by collateral held by the pledging bank’s trust department but not in
the Library’s name.
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 $ 53,640
General Capital Projects 6,130
Roads Capital Projects 21,420
Non-Major Governmental Funds 14,096
Total Investment Income $ 95,286
Business-Type Funds
Major Enterprise Funds
Sanitary District $ 343,389
Airport 179
Total Investment Income $ 343,568
-65-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 4 - ACCOUNTS RECEIVABLE
Receivables as of June 30, 2014 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 $ 231,305 $ - $ - $ - $ 2 31,305 $ - $ 231,305
Taxes - Other 163,964 160,988 - - 3 24,952 - 324,952
Subtotal Taxes 395,269 160,988 - - 5 56,257 - 556,257
Other Accounts Receivable:
Queen Anne's County Public Housing Authority - 1,230,472 - - 1 ,230,472 - 1,230,472
Sanitary District - User and Septage Fees - - - - - 5 38,939 538,939
Planning and Zoning 24,025 - - - 2 4,025 - 24,025
Board of Education 18,649 - - - 1 8,649 - 18,649
Retirees Insurance 26,978 - - - 2 6,978 - 26,978
Governmental Funds - User Fees 6,493 - 16,259 - 2 2,752 - 22,752
Solid Waste 20,274 - - - 2 0,274 - 20,274
Economic Development Incentive Fund - - - 100,000 1 00,000 - 100,000
Airport - Fuel Sales and User and Rental Fees - - - - - 2 6,607 26,607
Miscellaneous Receivables 33,788 1,756 - 29,275 6 4,819 1 0,973 75,792
Subtotal Other Accounts Receivable 130,207 1,232,228 16,259 129,275 1 ,507,969 5 76,519 2,084,488
Loans Receivable - - - 5,115,405 5 ,115,405 - 5,115,405
Subtotal Other Accounts and Loans Receivable 130,207 1,232,228 16,259 5,244,680 6 ,623,374 5 76,519 7,199,893
Special Assessments - - 293,865 549,747 8 43,612 - 843,612
Intergovernmental
Income Taxes Held by State 4,836,100 - - - 4 ,836,100 - 4,836,100
Grants Receivable 423,376 794,794 - 385,549 1 ,603,719 2 16,077 1,819,796
Recordation Tax 285,232 - - - 2 85,232 - 285,232
State-Shared Highway User Tax 112,687 - - - 1 12,687 - 112,687
Bonds Receivable 1,153,125 - - - 1 ,153,125 - 1,153,125
Subtotal Intergovernmental 6,810,520 794,794 - 385,549 7 ,990,863 2 16,077 8,206,940
Restricted Receivables
Accounts Receivable - - - - - 3 2,719 32,719
Special Assessments - - - - - 1 ,427,915 1,427,915
Subtotal Restricted Receivables - - - - - 1 ,460,634 1,460,634
Total Receivables $ 7,335,996 $ 2,188,010 $ 310,124 $ 6,179,976 $ 1 6,014,106 $ 2 ,253,230 $ 18,267,336
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 has also recorded a $4.8 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.
-66-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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 $875,000 and $278,125, respectively, for a
total of $1,153,125. 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 three receivables
related to Chesapeake College, there is also a receivable of $4.8 million recorded in the Government-Wide Statement of
Net Position. Details are included on the previous page.
Loans receivable in the amount of $5,115,405 relate to the Housing and Community Services, Impact Fees, and Revolving
Loan Special Revenue Funds. Loans receivable in the amount of $4,128,960 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 $111,176 are also repaid over a number of years.
The remaining loan receivable balance of $875,269 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 $4,836,100 have been estimated by the State as income tax due for “tax
years” 2013 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 $843,612 represent receivables for governmental activities. Part of this amount
consists of $293,865 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 $549,747 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 $1,427,915 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.
-67-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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 $ 1 9,775
Grant Drawdowns in Excess of Expenditures 4 9,702
Inspection Fees Collected in Advance 4 80,060
Subtotal 5 49,537
General Capital Projects Fund
Grant Drawdowns in excess of Expenditures 7 9,323
Non-Major Governmental Funds
Grant Drawdowns in Excess of Expenditures 1 89,827
Total Unearned Revenue $ 8 18,687
-68-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 6 – CAPITAL ASSETS
PRIMARY GOVERNMENT
Changes in the County’s capital assets for governmental activities for the year ended June 30, 2014 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, 2013 Increases Transfers Decreases June 30, 2014
Capital Assets, not being depreciated:
Land $ 38,931,825 $ 1,108,897 $ - $ (111,157) $ 3 9,929,565
Intangible Rights - Easements 786,819 35,000 - - 8 21,819
Land Improvements 3,448,083 - - - 3 ,448,083
Construction in Progress 2,118,314 3,791,377 (1,332,422) - 4 ,577,269
Land - Inexhaustible Infrastructure Improvements 41,983,313 1,409,622 1,001,397 - 4 4,394,332
Total Capital Assets, not being depreciated 87,268,354 6,344,896 (331,025) (111,157) 9 3,171,068
Capital Assets, being depreciated:
Buildings and Building Improvements 41,715,513 32,534 - (31,253) 4 1,716,794
Improvements other than Buildings 8,093,474 1,427,497 56,435 - 9 ,577,406
Vehicles 10,242,687 1,308,637 - (309,154) 1 1,242,170
Equipment 8,368,007 475,108 24,240 (439,797) 8 ,427,558
Furniture and Fixtures 10,412,345 101,991 - (238,140) 1 0,276,196
Infrastructure Improvements - Depreciable 18,324,016 352,405 250,350 - 1 8,926,771
Total Capital Assets, being depreciated 97,156,042 3,698,172 331,025 (1,018,344) 1 00,166,895
Less Accumulated Depreciation for:
Buildings and Building Improvements 11,048,577 926,079 - (8,204) 1 1,966,452
Improvements other than Buildings 1,569,753 244,678 - - 1 ,814,431
Vehicles 6,370,904 724,535 - (250,621) 6 ,844,818
Equipment 5,716,076 395,464 - (332,743) 5 ,778,797
Furniture and Fixtures 8,916,760 320,416 - (221,316) 9 ,015,860
Infrastructure Improvements - Depreciable 7,263,134 305,027 - - 7 ,568,161
Total Accumulated Depreciation 40,885,204 2,916,199 - (812,884) 4 2,988,519
Total Capital Assets, being depreciated, net 56,270,838 781,973 331,025 (205,460) 5 7,178,376
Governmental activities Capital Assets, net $ 143,539,192 $ 7,126,869 $ - $ (316,617) $ 1 50,349,444
-69-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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, 2014 are summarized as
follows, with depreciation shown separately. Completed projects that were reclassified from construction in progress
(CIP) to other asset accounts during the year are reported in the same column, as retirements from CIP and transfers to
other asset accounts.
Balance Balance
Business-Type Activities June 30, 2013 Increases Transfers Decreases June 30, 2014
Capital Assets, not being depreciated:
Land $ 12,929,533 $ - $ - $ - $ 12,929,533
Land Improvements 9,500 - - - 9,500
Intangible Rights 6,140 - - - 6,140
Construction in Progress 2,950,830 1,773,829 - - 4,724,659
Land - Inexhaustible Infrastructure Improvements 1,219,298 - - - 1,219,298
Total Capital Assets, not being depreciated 17,115,301 1,773,829 - - 18,889,130
Capital Assets, being depreciated:
Buildings and Improvements to Buildings 14,703,860 - - - 14,703,860
Improvements other than Buildings 11,914,132 - - - 11,914,132
Vehicles 1,295,224 164,235 - - 1,459,459
Equipment 21,809,119 530,239 - (27,000) 22,312,358
Furniture and Fixtures 59,708 13,620 - - 73,328
Infrastructure Improvements - Depreciable 72,288,836 826,073 - - 73,114,909
Total Capital Assets, being depreciated 122,070,879 1,534,167 - (27,000) 123,578,046
Less Accumulated Depreciation for:
Buildings and Improvements to Buildings 6,677,921 612,441 - - 7,290,362
Improvements other than Buildings 3,227,950 367,266 - - 3,595,216
Vehicles 954,190 74,821 - - 1,029,011
Equipment 9,085,030 1,043,886 - (20,850) 10,108,066
Furniture and Fixtures 48,022 2,902 - - 50,924
Infrastructure Improvements - Depreciable 24,368,533 1,720,737 - - 26,089,270
Total Accumulated Depreciation 44,361,646 3,822,053 - (20,850) 48,162,849
Total Capital Assets, being depreciated, net 77,709,233 (2,287,886) - (6,150) 75,415,197
Business-Type activities Capital Assets, net $ 94,824,534 $ (514,057) $ - $ (6,150) $ 94,304,327
-70-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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 $ 241,110
Public Safety 891,285
Public Works 1,321,557
Health 21,121
Social Services 348,059
Library 25,848
Conservation of Natural Resources 29,089
Economic/Community Development 38,130
$ 2,916,199
Business-Type Activities
Major Enterprise Funds:
Sanitary District $ 3,440,475
Airport 234,009
Non-Major Enterprise Funds 147,569
$ 3,822,053
-71-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS
Board of Education: Capital asset activity for the year ended June 30, 2014 is as follows:
Balance Balance
Board of Education June 30, 2013 Increases Decreases June 30, 2014
Capital Assets, not being depreciated:
Land $ 6,363,040 $ - $ - $ 6,363,040
Construction in Progress 953,870 4,796,537 (388,247) 5,362,160
Total Capital Assets, not being depreciated 7,316,910 4,796,537 (388,247) 11,725,200
Capital Assets, being depreciated:
Land Improvements 5,568,359 24,000 (224,163) 5,368,196
Buildings 181,998,457 575,278 (223,341) 182,350,394
Furniture and Equipment 9,679,471 4,315,054 (903,468) 13,091,057
Total Capital Assets, being depreciated 197,246,287 4,914,332 (1,350,972) 200,809,647
Less Accumulated Depreciation for:
Land Improvements 3,806,919 174,112 (177,514) 3,803,517
Building 40,732,782 3,709,426 (223,345) 44,218,863
Furniture and Equipment 6,375,620 808,453 (811,139) 6,372,934
Total Accumulated Depreciation 50,915,321 4,691,991 (1,211,998) 54,395,314
Total Capital Assets, being depreciated, net 146,330,966 222,341 (138,974) 146,414,333
Capital Assets, net $ 153,647,876 $ 5,018,878 $ (527,221) $ 158,139,533
-72-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS (CONTINUED)
Queen Anne’s County Free Library: Capital asset activity for the year ended June 30, 2014 is as follows:
Balance Balance
Library June 30, 2013 Increases Decreases June 30, 2014
Capital Assets, not being depreciated:
Artwork $ 29,850 $ - $ - $ 2 9,850
Capital Assets, being depreciated:
Books and Media 2,386,179 141,889 (381,342) 2 ,146,726
Building Improvements 311,523 - - 3 11,523
Equipment 22,870 - - 2 2,870
Total Capital Assets, being depreciated 2,720,572 141,889 (381,342) 2 ,481,119
Less Accumulated Depreciation 1,628,672 122,629 (344,236) 1 ,407,065
Total Capital Assets, being depreciated, net 1,091,900 19,260 (37,106) 1 ,074,054
Capital Assets, net $ 1,121,750 $ 19,260 $ (37,106) $ 1 ,103,904
-73-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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.
Intra-entity receivables and payables usually relate to capital construction projects, wherein the primary government
records a liability to its component unit at year-end while the component unit records a payable to the contractor.
The interfund and intra-entity receivables and payables consist of the following at June 30, 2014:
Due from Fund
Total Due From
General Non-Major Sanitary Bay Bridge Non-Major Other Funds /
Capital Projects Governmental District Airport Enterprise Component Units
Due to Fund
General Fund $ - $ 171,710 $ - $ 313,110 $ 339,036 $ 823,856
General Capital Projects - 61,967 - - - 61,967
Sanitary District - - 377,557 - - 377,557
Board of Education -
Component Unit 430,956 - - - - 430,956
Total Due to Other Funds $ 430,956 $ 233,677 $ 377,557 $ 313,110 $ 339,036 $ 1,694,336
Interfund receivables and payables are reported on the Statement of Net Position as Internal Balances, net of transactions
between the same types of funds.
-74-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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,
2014:
Transfers in Fund
Total General General Roads Non-Major Major Non-Major Total
Transfers Out Fund Capital Projects Capital Governmental Enterprise Enterprise Transfers In
Transfers Out Fund
General Fund $ 5,359,016 $ - $ 2,336,147 $ 1,050,000 $ 1,654,744 $ 145,777 $ 172,348 $ 5,359,016
General Capital Projects 1,051,612 - - - 750,000 301,612 - 1,051,612
Total Major Governmental Funds 6,410,628 - 2,336,147 1,050,000 2,404,744 447,389 172,348 6,410,628
Non-Major Governmental 40,370 40,370 - - - - - 40,370
Sanitary District - Sewer 15,000 - 15,000 - - - - 15,000
Sanitary District - Water 15,000 - 15,000 - - - - 15,000
Sanitary District - Restricted 1,053,562 - - - - 1,053,562 - 1,053,562
Sanitary District - Debt Service 1,550,729 - - - - 1,550,729 - 1,550,729
Total Major Enterprise Funds 2,634,291 - 30,000 - - 2,604,291 - 2,634,291
Total Transfers Out $ 9,085,289 $ 40,370 $ 2,366,147 $ 1,050,000 $ 2,404,744 $ 3,051,680 $ 172,348 $ 9,085,289
-75-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 9 - NONCURRENT LIABILITIES
A. CHANGES IN NONCURRENT LIABILITIES
During the year ended June 30, 2014, 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 6/30/2013 * of debt Repayments June 30, 2014 One Year One Year
General Bonds Payable $ 8 9,078,227 $ 17,590,000 $ 7,285,615 $ 99,382,612 $ 7,632,062 $ 91,750,550
General Bonds Payable - Related to PHA 1 ,296,971 - 66,499 1,230,472 69,239 1,161,233
General Bonds Payable - Related to Ches College - 4,800,000 - 4,800,000 168,289 4,631,711
Notes Payable 1 ,146,755 15,542 204,141 958,156 173,370 784,786
Bond Premiums 1 ,519,642 1,118,097 167,260 2,470,479 223,165 2,247,314
Subtotal Governmental Activities Debt 9 3,041,595 23,523,639 7,723,515 108,841,719 8,266,125 100,575,594
Other Post-Employment Benefit Obligation 2 5,785,783 8,109,003 1,692,951 32,201,835 - 32,201,835
Compensated Absences 2 ,057,039 1,305,967 1,251,413 2,111,593 1,256,198 855,395
Total Governmental Activities Debt $ 1 20,884,417 $ 32,938,609 10,667,879 $ 143,155,147 $ 9,522,323 $ 133,632,824
Less College Reimbursements ( 279,195)
Total Governmental Retirements and Repayments $ 10,388,684
* 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 ,285,615
Notes Payable 2 04,141
LESS: College Reimbursements (279,195)
Total Principal Payments $ 7 ,210,561
The County added amounts to several bond offerings on behalf of Chesapeake College, which cannot borrow money on
its own. The College reimbursed to the County $279,195 for this year’s principal and interest payments.
-76-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2014, 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 June 30, 2013 of debt Repayments June 30, 2014 One Year One Year
Golf Course $ 6 06,075 $ - $ 80,000 $ 526,075 $ 85,000 $ 441,075
Airport 5 67,500 - 44,583 522,917 45,372 477,545
Public Landings and Marinas 1 ,016,225 - 43,303 972,922 45,037 927,885
Sanitary District 1 4,097,769 - 1,513,294 12,584,475 1,195,550 11,388,925
Subtotal Debt 1 6,287,569 - 1,681,180 14,606,389 1,370,959 13,235,430
Bond Premiums
Golf Course 1 8,559 - 313 18,246 3,041 15,205
Airport 5 ,889 - ( 2,665) 8,554 1,160 7,394
Public Landings and Marinas 3 74 - ( 4,648) 5,022 316 4,706
Subtotal Bond Premiums 2 4,822 - ( 7,000) 31,822 4,517 27,305
Subtotal Debt before Other Post-Employment
Benefit Obligation and Compensated Absences 1 6,312,391 - 1,674,180 14,638,211 1,375,476 13,262,735
Other Post-Employment Benefit Obligation 4 ,399,415 1,077,997 - 5,477,412 - 5,477,412
Compensated Absences 2 65,108 183,942 161,811 287,239 170,879 116,360
Total Business-Type Activities Debt $ 2 0,976,914 $ 1,261,939 $ 1,835,991 $ 20,402,862 $ 1,546,355 $ 18,856,507
-77-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2014, 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 June 30, 2013 of new debt Repayments June 30, 2014 One Year One Year
Queen Anne's County
Board of Education
Retirement Incentives $ 16,577 $ - $ 4,298 $ 12,279 $ 4,298 $ 7,981
Compensated Absences 1,001,163 336,622 258,124 1,079,661 300,926 778,735
Capital Leases - 2,614,862 57,892 2,556,970 84,875 2,472,095
Other Post-Employment Benefit Obligation 27,015,754 7,081,035 - 34,096,789 - 34,096,789
Subtotal 28,033,494 10,032,519 320,314 37,745,699 390,099 37,355,600
Free Library
Other Post-Employment Benefit Obligation 1,013,264 234,000 - 1,247,264 - 1,247,264
Total Noncurrent Liabilites: Component Units $ 29,046,758 $ 10,266,519 $ 320,314 $ 38,992,963 $ 390,099 $ 38,602,864
-78-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
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 2009, the County implemented the provisions of Governmental Accounting Standards Board (GASB)
Statement 43, Financial Reporting for Post-Employment Benefit Plans Other than Pension Plans and GASB 45,
Accounting and Financial Reporting by Employers for Post-Employment Benefits 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.
Compensated absences that mature during the fiscal year, in that they are paid when the employee takes vacation leave
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.
-79-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
As of June 30, 2014, general obligation bonds and notes payable for governmental activities are comprised of the
following, along with other post-employment benefits 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 2014 One Year One Year
General Obligation Bonds Payable
2005 Refunding Bonds General 3.00%-5.00% 2019 $ 30,026,336 $ 14,881,336 $ 3 ,440,000 $ 11,441,336
2006 Public Facilities General 4.000%-5.375% 2027 22,510,212 16,766,427 9 92,813 15,773,614
2009 Public Facilities General 1.400%-5.625% 2030 28,499,154 23,847,344 1 ,109,829 22,737,515
2011 Public Facilities General 2.00%-4.25% 2031 21,532,570 19,233,849 7 94,582 18,439,267
2012 Refunding Bonds General 2.00%-4.00% 2023 8,010,000 7,063,656 6 78,127 6,385,529
2014 Public Facilities General 2.00%-4.00% 2034 17,590,000 17,590,000 6 16,711 16,973,289
2003 Public Facilities Due from PHA 3.50%-4.50% 2023 335,000 186,344 1 6,873 169,471
2006 Public Facilities Due from PHA 4.000%-5.375% 2027 399,728 297,732 1 7,630 280,102
2009 Public Facilities Due from PHA 1.400%-5.625% 2030 872,644 746,396 3 4,736 711,660
2014 Public Facilities Due from other Counties 2.00%-4.00% 2034 4,800,000 4,800,000 1 68,289 4,631,711
Subtotal Bonds Payable 105,413,084 7 ,869,590 97,543,494
Notes Payable
2009 CELP Loan General 2.00% 2015 122,780 27,769 1 8,420 9,349
State of Maryland - Price Ck. Spec. Rev. 0.00% 2021 625,000 168,000 2 4,000 144,000
State of Maryland - Grove Ck. Spec. Rev. 0.00% 2034 510,617 408,492 2 0,425 388,067
State of Maryland - Narrows Pointe Spec. Rev. 0.00% 2030 15,542 15,542 - 15,542
Suntrust Financing General 2.01% 2016 564,068 338,353 1 10,525 227,828
Subtotal Notes Payable 958,156 173,370 784,786
Subtotal Bonds and Notes Payable 106,371,240 8 ,042,960 98,328,280
Bond Premiums 2,470,479 2 23,165 2,247,314
Total Governmental Activities before
Other Post-Employment Benefit Obligation and Compensated Absences 108,841,719 8 ,266,125 100,575,594
Other Post-Employment Benefit Obligation 32,201,835 - 32,201,835
Compensated Absences 2,111,593 1 ,256,198 855,395
Total Governmental Activities $ 143,155,147 $ 9 ,522,323 $ 133,632,824
-80-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize general obligation bonds and notes payable outstanding as of
June 30, 2014 for governmental activities are as follows:
Governmental Activities
Year Ending Governmental Bonds Payable Governmental Notes Payable
June 30, Principal Interest Total Principal Interest Total
2015 $ 7,869,590 $ 4,179,880 $ 12,049,470 $ 173,370 $ 7,334 $ 180,704
2016 7,571,995 3,948,542 11,520,537 182,085 4,719 186,804
2017 7,884,401 3,659,880 11,544,281 159,484 2,336 161,820
2018 6,631,618 3,370,893 10,002,511 44,425 - 44,425
2019 6,933,728 3,098,669 10,032,397 44,425 - 44,425
2020-2024 29,822,217 11,752,553 41,574,770 150,125 - 150,125
2025-2029 26,344,798 5,847,334 32,192,132 102,125 - 102,125
2030-2034 12,354,737 1,150,341 13,505,078 102,117 - 102,117
$ 105,413,084 $ 37,008,092 $ 142,421,176 $ 958,156 $ 14,389 $ 972,545
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 $389,092 during fiscal year 2014, which
are reported separately as a specific intergovernmental grant. The net effect of this reimbursement is shown below.
Interest Expense Interest Net Interest
on 2009 Bonds Reimbursement Expense
Governmental Activities $ 1,209,177 $ (373,790) $ 835,387
Business-Type Activities
Airport 7,828 (2,420) 5,408
Public Landings and Marinas 41,671 (12,882) 28,789
Total Business-Type Activities 49,499 (15,302) 34,197
Total $ 1,258,676 $ (389,092) $ 869,584
-81-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
General obligation bonds and notes payable outstanding as of June 30, 2014 for business-type activities are comprised of
the following, as well as other post-employment benefits 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 2014 One Year One Year
Golf Course
2005 Refunding Bonds 3.00%-5.00% 2019 $ 1 ,076,075 $ 526,075 $ 85,000 $ 441,075
Bond Premiums 18,246 3,041 15,205
Subtotal Golf Course 544,321 88,041 456,280
Bay Bridge Airport
2005 Refunding Bonds 3.00%-5.00% 2019 3 37,588 142,588 25,000 117,588
2006 Public Facilities Bonds 4.000%-5.375% 2027 2 88,928 215,204 12,743 202,461
2009 Public Facilities Bonds 1.400%-5.625% 2030 1 80,501 154,387 7,185 147,202
2011 Public Facilities Bonds 2.00%-4.25% 2031 2 1,968 10,738 444 10,294
Bond Premiums 8,554 1,160 7,394
Subtotal Airport 531,471 46,532 484,939
Public Landings and Marinas
2006 Public Facilities Bonds 4.000%-5.375% 2027 4 1,132 30,636 1,814 28,822
2009 Public Facilities Bonds 1.400%-5.625% 2030 9 47,976 821,872 38,249 783,623
2011 Public Facilities Bonds 2.00%-4.25% 2031 1 33,908 120,414 4,974 115,440
Bond Premiums 5,022 316 4,706
Subtotal Public Landings and Marinas 977,944 45,353 932,591
Sanitary District
Maryland Water Quality-2005 Enhancement 1.00% 2027 1 8,252,291 12,513,844 1,144,589 11,369,255
Queenstown Bank-Cloverfields Hookup 8.13% 2015 4 35,000 32,936 32,936 -
Queenstown Bank-Bay City Hookup 7.90% 2015 2 05,000 37,695 18,025 19,670
Subtotal Sanitary District 12,584,475 1,195,550 11,388,925
Total Business-Type Activities before
Other Post-Employment Benefit Obligation and Compensated Absences 14,638,211 1,375,476 13,262,735
Other Post-Employment Benefit Obligation 5,477,412 - 5,477,412
Compensated Absences 287,239 170,879 116,360
Total Business-Type Activities $ 20,402,862 $ 1,546,355 $ 18,856,507
-82-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize business-type bonds and notes outstanding at June 30, 2014, are as follows:
Business-Type Activities
Year Ending Business-Type Bonds Payable Business-Type Notes Payable
June 30, Principal Interest Total Principal Interest Total
2015 $ 175,409 $ 87,110 $ 262,519 $ 1,195,550 $ 197,010 $ 1,392,560
2016 178,008 80,481 258,489 917,106 163,082 1,080,188
2017 180,597 73,597 254,194 906,772 153,121 1,059,893
2018 188,383 65,816 254,199 915,658 144,051 1,059,709
2019 191,273 57,490 248,763 924,815 134,895 1,059,710
2020-2024 537,781 203,370 741,151 4,764,661 533,891 5,298,552
2025-2029 470,203 88,818 559,021 2,959,913 204,451 3,164,364
2030-2031 100,260 3,550 103,810 - - -
$ 2,021,914 $ 660,232 $ 2,682,146 $ 12,584,475 $ 1,530,501 $ 14,114,976
C. ISSUANCE OF NEW DEBT
PRIMARY GOVERNMENT
On April 14, 2014, Queen Anne's County issued Public Facilities Bonds of 2014 for $22,390,000. These General
Obligation Bonds carry interest rates of 2.0 to 4.0 percent and mature serially through 2034. The primary use of these
bond proceeds is to provide funding for construction of a new County building, for the renovation of Stevensville
Middle School, to fund the new Center for Allied Health and Athletics at Chesapeake College, with minor amounts
earmarked for construction of general government and enterprise capital projects. The portion of the bonds relating to
the Chesapeake College project is being funded by four Counties total (not including Kent County which paid cash up
front). The other three Counties (Dorchester, Caroline, and Talbot) will reimburse Queen Anne’s County for their
portion of the payments as they are due (total of $4.8 million in principal will be reimbursed to the County). Moody’s
Investor Service has assigned the rating of Aa2 and Fitch Ratings has assigned a rating of AA+ to the Queen Anne’s
County 2014 Bonds.
In May 2014, the County received $15,542 in loan proceeds from the State of Maryland Department of Natural
Resources for the Narrows Pointe Shore Erosion Loan. The County can borrow up to $355,318 for this project,
which will be repaid, without interest, in fifteen annual installments beginning July 1st immediately following the
completion of the project. In addition, the County will reimburse the Department of Natural Resources for services in
the amount of $12,377, to be included in with the first payment.
D. MUNICIPAL LEASE
PRIMARY GOVERNMENT
In August 2012, the County signed a note with Suntrust Equipment Financing & Leasing Corporation for the purchase
of five replacement vehicles for the Sheriff’s Office and two ambulances for Emergency Services. The total amount of
the note was $564,068 and is payable over five years. The first payment was made in August 2012. The annual interest
rate is 2.0118%. The outstanding balance as of June 30, 2014 is $338,353.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
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, 2014 amounted to $4,867. Minimum future lease revenues are as follows:
Fiscal Year Ending lease
June 30, payments
2015 $ 5 ,416
2016 5 ,488
2017 5 ,525
2018 5 ,525
2019 5 ,598
2020-2024 2 8,476
2025-2029 2 9,471
2030-2034 3 0,419
2035 2 ,074
Minimum Future Rental Revenue $ 1 17,992
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 and Finance: (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; (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; and (5) review and revise this Debt Policy as necessary no later than
September 1, 2015. 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.
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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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, 2014 are as follows:
Sanitary District
Business -Type Activities Restricted Debt Service Total
Current Restricted Assets
Equity in Pooled Cash $ 5,791,074 $ 2,763,304 $ 8,554,378
Accounts Receivable (Net) 11,102 21,617 32,719
Subtotal 5,802,176 2,784,921 8,587,097
LESS Current Liabilities Associated with Restricted Assets
Current Portion of Bonds Payable from Restricted Assets - (50,961) (50,961)
Net Current Restricted Assets 5,802,176 2,733,960 8,536,136
Noncurrent Restricted Assets
Special Assessments Receivable (Net) 1,114,713 313,202 1,427,915
LESS Deferred Inflows - Unavailable Water and Sewer Assessments (1,114,713) (292,672) (1,407,385)
Net Noncurrent Restricted Assets - 20,530 20,530
Net Restricted Assets $ 5,802,176 $ 2,754,490 $ 8,556,666
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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 and OPEB Obligation $ (107,757,594)
(includes $1,084,125 for deferred charge on refunding)
Add back: Debt relating to Board of Education Assets $ 62,979,838
Add back: Unspent portion of Bond Proceeds for Board of Education debt 4,671,648
Add back: Unspent portion of Bond Proceeds for Governmental debt 7,912,558
Add back: Debt relating to Chesapeake College 7,391,559
Add back: Debt relating to PHA 1,230,472
Add back: Debt relating to non-capital assets (Dredging) 592,034
Add back debt unrelated to Capital Assets 84,778,109
Net Assets Invested in Capital Assets 150,349,444
Net Investment in Capital Assets $ 127,369,959
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 $ 53,305,608 $ 1 6,326,415 $ - $ - $ 69,632,023 $ 16,966,197 $ 7,706,107 $ 94,304,327
Less: Debt excluding Compensated Absences
and OPEB Obligation (12,513,845) - - - (12,513,845) (531,471) (1,522,265) (14,567,581)
Plus: Deferred Charge on Refunding - - - - - 11,084 35,330 46,414
Net Investment in Capital Assets 40,791,763 1 6,326,415 - - 57,118,178 16,445,810 6,219,172 79,783,160
Restricted Amounts
Debt Service - - - 2,356,451 2,356,451 - - 2,356,451
Capital Projects - - 753,300 - 753,300 - - 753,300
Donations - - - - - - 282 282
Total Restricted Amounts - - 753,300 2,356,451 3,109,751 - 282 3,110,033
Total Unrestricted Amounts 3,140,935 2 ,382,433 5,048,876 - 10,572,244 (511,631) 158,912 10,219,525
Total Net Position $ 43,932,698 $ 1 8,708,848 $ 5,802,176 $ 2,356,451 $ 70,800,173 $ 15,934,179 $ 6,378,366 $ 93,112,718
Sanitary District debt, excluding compensated absences and OPEB obligation of $12,513,845 above, also excludes
$70,630 from the Debt Service Fund, as there are no capital assets related to that debt.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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
Inventory $ 479,718 $ - $ - $ - $ 479,718
Prepaid Items 667 - - - 667
Loans Receivable - 1,230,472 - 4,240,136 5,470,608
Subtotal Nonspendable 480,385 1,230,472 - 4,240,136 5,950,993
Restricted
Rainy Day Fund 8,235,928 - - - 8,235,928
Unspent Bond Proceeds - 12,584,206 - - 12,584,206
Impact Fees - 247,801 - 4,515,849 4,763,650
Economic and Community Development - - - 3,457,613 3,457,613
Agricultural Easements - - - 435,688 435,688
Inmate Welfare - - - 236,035 236,035
Sheriff's Drug Task Force - - - 136,095 136,095
Critical Areas - - - 163,956 163,956
Mosquito Control 123,680 - - - 123,680
Sheriff - Federal Confiscated Funds 15,760 - - - 15,760
Vehicle Acquisition - 25,176 - - 25,176
Dredging - - - 18,286 18,286
Donor-Specified Purposes - - - 4,265 4,265
Subtotal Restricted 8,375,368 12,857,183 - 8,967,787 30,200,338
Committed
Encumbrances 157,360 - - - 157,360
Developer Exactions - 86,993 779,252 - 866,245
Rubble Surcharge - 657,781 - - 657,781
Special Fund 1,000,000 - - - 1,000,000
Economic Development - 764,791 - - 764,791
Courthouse Project - 1,808,216 - - 1,808,216
Subtotal Committed 1,157,360 3,317,781 779,252 - 5,254,393
Assigned
Encumbrances - 8,140,147 1,852,358 - 9,992,505
Income Tax Contingency 1,284,875 - - - 1,284,875
Capital Projects - 7,080,593 994,576 - 8,075,169
Subsequent Years' Expenditures - 6,790,636 780,000 301,009 7,871,645
Subtotal Assigned 1,284,875 22,011,376 3,626,934 301,009 27,224,194
Unassigned
General Fund 7,123,519 - - - 7,123,519
Fire Company Impact Fees - - - (61,967) (61,967)
Housing and Community Services - - - (53,833) (53,833)
Subtotal Unassigned 7,123,519 - - (115,800) 7,007,719
Total Governmental Funds Balances $ 18,421,507 $ 39,416,812 $ 4,406,186 $ 13,393,132 $ 75,637,637
-87-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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 2014 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.
Settlements - In fiscal year 2014, the County paid out $259,305 in front and back wages as a result of a settlement
involving a former employee. For the two years prior, settlements have not exceeded insurance coverage for any
type of policy in effect.
-88-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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.
PRIMARY GOVERNMENT
COST-SHARING MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLANS
Description of Plans
The County participates in the following cost-sharing multiple-employer pension plans that are administered by the
State of Maryland.
The Employees Pension System of the State of Maryland (Pension System) was established January 1, 1980. The
Pension System covers employees hired after December 31, 1979, as well as Retirement System participants who
have voluntarily joined the Pension System.
The Employees Contributory Pension System of the State of Maryland (Contributory Pension System) was
established July 1, 1998. As of July 1, 1999, and retroactively to July 1, 1998, the County elected to participate in
the Contributory Pension System for all service earned on or after July 1, 1998.
Effective the first payroll in fiscal year 2007, the County elected to provide its employees with the “Alternate
Contributory Pension Selection Plan of the State of Maryland” (Alternate Contributory Pension System), under Title 23
of the State Pension Article. This plan is an enhanced version of the two pension systems described above, and, as such,
includes provisions that originate in those plans. Eligible employees not covered by LEOPS, which is described below,
are required to participate in this alternate plan in lieu of other plans previously offered. At this time, all current
employees not covered by LEOPS participate in the Alternate Contributory Pension System.
The Law Enforcement Officers Pension System (LEOPS) was established July 2, 1990 and adopted by the County
on July 1, 2004. LEOPS currently covers uniformed law enforcement officers of the Sheriff’s Department.
Under the terms of the Alternate Contributory Pension System, a member may retire after 30 years of service
regardless of age; at age 65 with two years of service; at age 64 with three years of service; at age 63 with four years
of service; or at age 62 with at least five years of service. An employee may also take early retirement with reduced
benefits at age 55 with 15 years of service. A member terminating employment before attaining retirement age, but
after completing five years of eligible service, becomes eligible for a vested pension allowance upon reaching age
62.
Under the terms of the LEOPS, a member may retire with full benefits upon attaining age 50 or after completing 25
years of eligible service regardless of age. LEOPS members are not eligible for early service retirement allowances.
A member terminating employment before attaining retirement age, but after completing five years of eligible
service, becomes eligible for a vested pension allowance upon reaching age 50.
On retirement from service, a member of any of these plans shall receive an annual service retirement allowance
based on the member's average final compensation (based on the highest three years’ wages) and years of creditable
service multiplied by a factor. This factor varies from 1.2% to 1.8% for the Alternate Plan or 2.0% for LEOPS. The
factor is applied per eligible service year, depending on employee/employer contributions and other plan-specific
provisions. Early retirement, where available, is subject to provisions that reduce the benefit received.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 12 - RETIREMENT PLANS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Benefits under these plans are established under the State Personnel and Pensions Article of the Annotated Code of
Maryland.
The State Retirement and Pension System of Maryland issues a comprehensive annual financial report that includes
disclosures regarding: actuarial value of assets; total actuarial accrued liability; unfunded actuarial accrued liability,
if any; and funded liability ratio. This report can be obtained from the agency’s office as follows:
State Retirement and Pension System of Maryland
120 E. Baltimore St, Suite 1601
Baltimore, Maryland 21202-1600
Funding Policy
Obligations to contribute to the plans are established under the Annotated Code of Maryland. Employees who are
members of these two plans contribute seven percent of their gross employee compensation.
Required contributions under the plans, which are not funded by employee contributions, are funded entirely by the
County. Contributions by the County to both State plans take place during the fiscal year and are based upon salaries for
the preceding fiscal year. The County contribution for the year ending June 30, 2014 is based on salaries for the year
ending June 30, 2013. The contribution requirements of plan members of the reporting entity are established and may
be amended by the Maryland State Pension System Board of Trustees. The County’s contributions for the fiscal years
ending June 30th were equal to the actuarially determined amounts as follows:
Fiscal Year Ending
Retirement Plan Contributions June 30, 2014 June 30, 2013 June 30, 2012
Total Payroll $ 23,986,391 $ 23,105,575 $ 24,033,001
Covered Payroll
Pension System 18,078,847 17,118,242 17,984,029
LEOPS 2,933,338 2,827,915 2,683,684
Expenditure/Expense
Pension System 1,720,206 1,586,756 2,075,122
LEOPS 700,030 595,031 689,232
-90-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 12 - RETIREMENT PLANS (CONTINUED)
OTHER COMPONENT UNITS
Queen Anne’s County Board Of Education
The employees of the Board of Education (other than part-time employees not eligible for participation in the plans)
are covered by one of four defined-benefit retirement plans that are administered by the State Retirement and
Pension System of Maryland. The Board’s share of contributions for teachers and administration employees is
primarily the responsibility of the State. In fiscal year 2014, State contributions on behalf of the Board are
approximately $5,693,955. This contribution is recognized as both revenue and expenditure for the Board. An
additional $2,039,524 is contributed by the Board of Education for other covered employees.
During a special session of the Maryland General Assembly – Teacher Pension Cost, it was determined that the State
and Local school boards will share the cost of teacher retirement by phasing in a requirement for school board
payment of annual normal cost over a four year period in increments of 50%, 65%, 85%, and 100%. This action
outlines the payment required of each school board for fiscal year 2013 through 2016 and the additional maintenance
of effort payments required by each County in the same period. The additional cost for fiscal year 2014 was
determined to be $1,401,286.
Detailed information concerning the Queen Anne's County Board Of Education retirement plan is presented in their June
30, 2014 financial statements, which are publicly available.
Queen Anne’s County Free Library
The employees of the Library (other than part-time employees not eligible for participation in the plans) are covered
under one of four defined-benefit retirement plans that are administered by the State Retirement and Pension System
of Maryland. The Library’s share of contributions for employees is primarily the responsibility of the State. In fiscal
year 2014, State contributions on behalf of the Library are approximately $128,608. These contributions are
recognized as both revenue and expenditures for the Library. An additional $64,039 is contributed by the Library’s
employees.
Detailed information concerning the Queen Anne's County Free Library retirement plan is presented in their June 30,
2014 financial statements, which are publicly available.
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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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,
2014, funds in the amount of $156,561 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.
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.
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. Addresses for other
participants are noted below in this Note.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Plan Description (Continued)
Primary Government
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.
Table 1 – Subsidy for employees who retire prior to September 2, 2011
Years of County
Total Subsidy
Service Prior to
Percentage
Retirement
14 Years 0.0%
15 Years 54.0%
16 Years 57.6%
17 Years 61.2%
18 Years 64.8%
19 Years 68.4%
20 Years 72.0%
21 Years 75.6%
22 Years 79.2%
23 Years 82.8%
24 Years 86.4%
25 or more Years 90.0% (max)
Table 2 – Subsidy for employees who retire between September 2, 2011 and August 31, 2012
Years of County
Service Prior to Total Subsidy Percentage
Retirement
PPO Plan EPO Plan
14 Years 0.0% 0.0%
15 Years 54.0% 54.0%
16 Years 57.1% 57.6%
17 Years 60.2% 61.2%
18 Years 63.3% 64.8%
19 Years 66.4% 68.4%
20 Years 69.5% 72.0%
21 Years 72.6% 75.6%
22 Years 75.7% 79.2%
23 Years 78.8% 82.8%
24 Years 81.9% 86.4%
25 or more Years 85.0% (max) 90.0% (max)
-93-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Plan Description (Continued)
Table 3 – Subsidy for employees who retire on or after September 1, 2012
Years of County
Service Prior to Total Subsidy Percentage
Retirement
PPO Plan EPO Plan
14 Years 0.0% 0.0%
15 Years 54.0% 54.0%
16 Years 56.6% 57.1%
17 Years 59.2% 60.2%
18 Years 61.8% 63.3%
19 Years 64.4% 66.4%
20 Years 67.0% 69.5%
21 Years 69.6% 72.6%
22 Years 72.2% 75.7%
23 Years 74.8% 78.8%
24 Years 77.4% 81.9%
25 or more Years 80.0% (max) 85.0% (max)
Participating Agencies
The other participating entities provide medical benefits to eligible employees who retire from employment with
each respective agency. Benefits and eligibility requirements vary among the different agencies. Each agency pays
a percentage of the health insurance premium based on certain criteria, including length of service. In addition to
medical benefits, the Board of Education pays the cost of providing term life insurance for its retirees in varying
amounts, depending upon length of service and date of retirement.
For detailed information on plan benefits provided by other participating agencies, as well as actuarial assumptions
used to estimate OPEB obligations, see the agencies’ separately-issued financial statements, which can be obtained
from their administrative offices as listed below:
Board of Education of Queen Anne’s County Kent County
Queen Anne’s County Free Library Government
202 Chesterfield Avenue 121 S. Commerce Street 400 High Street
Centreville, Maryland 21617 Centreville, MD 21617 Chestertown, MD 21620
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Plan Membership
Plan membership as of the date of the most recent actuarial valuation consisted of the following:
Plan Membership Active Retirees
Queen Anne's County 3 49 1 16
Board of Education 8 27 2 97
Library 1 3 5
Total 1 ,189 418
Basis of Accounting and Financial Statements
The Plan’s financial information is prepared on the full accrual basis of accounting. Expenses are recognized as
retirees’ insurance costs are incurred.
For further financial information, Summary and Combining financial statements may be found within this report, as
listed in the table of contents. Required Supplementary Information may be found after these Notes.
Contributions
Each participating agency has the authority to establish and amend benefit provisions that result in contribution
requirements of the plan members and the agency. The Plans are contributory plans in which the agencies and their
retired members and beneficiaries contribute certain amounts toward the current cost of the healthcare benefits, based on
an actuarial valuation.
To avoid reporting a liability for the current year’s contribution, each employer must contribute its annual required
contribution (ARC), which is an amount actuarially determined to be in accordance with the parameters of GASB
Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal
cost each year and to amortize any unfunded actuarial liabilities over a period not to exceed 30 years.
-95-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Annual OPEB Cost and Net OPEB Obligation
Total
Queen Anne's Board of for All
County Education Library Employers
Actuarial accrued liability (AAL) $ 95,676,000 $ 93,096,000 $ 3,140,000 $ 191,912,000
Actuarial value of plan assets 976,790 504,292 30,258 1,511,340
Unfunded actuarial accrued liability (UAAL) $ 94,699,210 $ 92,591,708 $ 3,109,742 $ 190,400,660
Funded Ratio (Actuarial value of plan assets / AAL) 1.02% 0.54% 0.96% 0.79%
Annual Required Contribution (ARC) $ 9,353,000 $ 8,748,000 $ 264,000 $ 18,365,000
Interest on Net OPEB Obligations 1,283,000 1,081,000 43,000 2,407,000
Adjustment to ARC (1,449,000) ( 1,259,000) (49,000) (2,757,000)
Total Annual OPEB Cost 9,187,000 8,570,000 258,000 18,015,000
Less: Trust Contributions (442,184) - - ( 442,184)
Less: Pay-As-You-Go Contributions (1,250,767) ( 1,488,965) (24,000) (2,763,732)
Total Contributions (1,692,951) ( 1,488,965) (24,000) (3,205,916)
Increase in Net OPEB Obligation 7,494,049 7,081,035 234,000 14,809,084
Net OPEB Obligation beginning of year 30,185,198 27,015,754 1,013,264 58,214,216
Net OPEB Obligation end of year $ 37,679,247 $ 34,096,789 $ 1,247,264 $ 73,023,300
Percent of Annual OPEB Cost Contributed 18.4% 17.4% 9.3% 17.8%
Covered payroll $ 17,953,154 $ 33,683,018 $ 1,039,494 $ 52,675,666
UAAL as a percentage of Covered Payroll 527.5% 274.9% 299.2% 361.5%
((UAAL) / covered payroll)
The Net OPEB Obligation (NOO) of $37,679,247 at the end of the year for the County consisted of liabilities of
$32,201,835 for Governmental Activities and $5,477,412 for Business Type Activities.
The schedule of funding progress, presented as required supplementary information (RSI) following the Notes,
presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing
over time relative to the actuarial accrued liabilities for benefits. This relationship is represented by the funded ratio.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Schedule of Participating Agencies’ Contributions
The Schedule of Participating Agencies’ Contributions presents multiyear trend information that shows whether the
actual ARC contributed is increasing or decreasing over time relative to the annual pension cost, as shown by the
percentage of ARC contributed. Generally, the greater this percentage, the stronger the system is becoming.
Fiscal Annual Percentage Net OPEB
Year Ended Postemployment ARC of ARC Obligation
Participating Agency June 30 Benefit Cost Contributed Contributed (NOO)
Queen Anne's County 2009 $ 5,312,000 $ 1,007,954 18.98% $ 4,304,046
2010 6,410,934 604,221 9.42% 5,806,713
2011 7,256,495 835,792 11.52% 6,420,703
2012 7,806,661 1,508,144 19.32% 6,298,517
2013 9,024,000 1,668,781 18.49% 7,355,219
2014 9,187,000 1,692,951 18.43% 7,494,049
44,997,090 7,317,843 16.26% 37,679,247
Board of Education 2009 5,907,000 1,534,955 25.99% 4,372,045
2010 6,340,000 1,176,586 18.56% 5,163,414
2011 6,535,000 1,276,130 19.53% 5,258,870
2012 6,953,000 1,409,451 20.27% 5,543,549
2013 8,083,000 1,405,124 17.38% 6,677,876
2014 8,570,000 1,488,965 17.37% 7,081,035
42,388,000 8,291,211 19.56% 34,096,789
Library 2009 178,000 38,234 21.48% 139,766
2010 212,000 12,200 5.75% 199,800
2011 234,000 12,302 5.26% 221,698
2012 250,000 19,600 7.84% 230,400
2013 250,000 28,400 11.36% 221,600
2014 258,000 24,000 9.30% 234,000
1,382,000 134,736 9.75% 1,247,264
Totals 2009 11,397,000 2,581,143 22.65% 8,815,857
2010 12,962,934 1,793,007 13.83% 11,169,927
2011 14,025,495 2,124,224 15.15% 11,901,271
2012 15,009,661 2,937,195 19.57% 12,072,466
2013 17,357,000 3,102,305 17.87% 14,254,695
2014 18,015,000 3,205,916 17.80% 14,809,084
$ 88,767,090 $ 15,743,790 17.74% $ 73,023,300
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Actuarial Methods and Assumptions
The actuarial valuations of the individual plans involve estimates of the value of reported amounts and assumptions
about the probability of events far into the future, such as future employment, mortality, and healthcare costs. The
actuarially determined amounts regarding the funded status of the plans and the annual required contributions (ARC)
of the County and other participating agencies are subject to continual revision, as actual results are compared to past
expectations and new estimates are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan (as understood by the employer
and plan members) and include the types of benefits provided at the time of valuation and the historical pattern of
sharing benefit costs between employers and plan members to that point. The actuarial methods and assumptions used
include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value
of the assets, consistent with the long-term perspective of the calculations.
Actuarial assumptions used in the actuarial valuation for the County’s plan were:
Actuarial Assumptions for Primary Government
Actuarial valuation date July 1, 2013
Actuarial cost method Projected unit credit
Amortization method Closed
Amortization period 25 years (as of July 1, 2013)
Interest Assumptions 4.25% investment rate of return
Asset valuation method Market value of assets
Inflation Rate 2.8% per year
Salary increases 3% per year
Mortality RP 2000, separate tables for males and females
Actuarial trend assumptions Based on Society of Actuaries Long Term
Medical Trend Model, the initial rate is 8.0
precent decreasing gradually. The rate in 2050
is 5.0 percent. The ultimate rate is 4.3 percent
and is attained in 2070.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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 $53,833 as
of June 30, 2014. 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 $61,967 as of
June 30, 2014. 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 $511,631 as of June 30,
2014.
Golf Course Enterprise Fund
The Golf Course Enterprise Fund has a deficit balance in unrestricted net position of $360,987 as of June 30, 2014.
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, 2014 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.
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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 16 - COMMITMENTS AND CONTINGENCIES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
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.
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 $3,317,781 has been committed, including $1,808,216 for the construction of a new County
Courthouse, $657,781 for rubble surcharge, $764,791 for economic development, and $86,993 for site improvements
pursuant to agreements with local developers. In the Roads Capital Projects Fund, $779,252 has been contributed by
developers and is committed to fund infrastructure improvements.
Income Tax Contingency - In the case of the Maryland State Comptroller of the Treasury v. Brian Wynne, Mr. Wynne
challenged the Maryland statute, arguing that the statute violated the Commerce Clause of the Federal Constitution
because it burdened Maryland residents that conducted interstate business. The Maryland Court of Appeals decision
found that “failure to allow a credit with respect to the county taxes for out-of-state income taxes paid to other states on
pass-through income earned in those states discriminates against interstate commerce and violates the Commerce Clause
of the Federal Constitution.” The Attorney General’s Office has filed an appeal with the Supreme Court. The Supreme
Court has heard the case and a decision is anticipated during the current fiscal year.
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 2009, 2010, 2011, and 2012 which totaled
$1.1 million. 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. Queen Anne’s County also assigned an amount equal to interest at 3%, which
the House Appropriations Committee approved in a decision to set the rate at the average prime rate. The total amount
of interest calculated was $151 thousand, bringing the total assigned fund balance associated with the income tax
contingency to
$1.3 million. 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.
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
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 17 – JOINT VENTURE (CONTINUED)
landfill within their borders. The agreement expires when the last of the four landfills is closed.
Queen Anne’s County has a 34.43% 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, 2014, total
closure and post closure costs for Midshore I were estimated at approximately $9.1 million. Midshore II, located in
Caroline County, was 9.41% filled. Closure and post closure costs for Midshore II are estimated at approximately $14.2
million. Therefore, the total closure and post closure costs for both landfills are $23.3 million, with approximately $8
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 $9.8 million as of June
30, 2014, 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 $22.6 million. As of June 30, 2014,
$7.8 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 $331,001 in
tipping fees to the facility during fiscal 2014.
MES has satisfied its financial assurance requirements based upon the local government financial ratio tests of the
project participants as of June 30, 2013. MES expects to satisfy these requirements as of June 30, 2014 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.
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, 2008, 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 2008, the County incurred a total of $360,000 in expenses, including $26,000 in
fiscal year 2014, 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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 18 – POLLUTION REMEDIATION OBLIGATIONS (CONTINUED)
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. The site continues to be compliantly monitored
with reports submitted to MDE.
The final scope of work is yet to be determined by the County and approved by MDE. 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 currently awaits further direction from MDE regarding this case.
No liability has been recorded at this time since costs for both the initial and final site injections cannot be reliably
estimated. None of these outlays met the requirements for capitalization noted in GASB Statement 49 and they were not
capitalized.
NOTE 19 – PRIOR PERIOD ADJUSTMENT
Net position of governmental activities has been restated by negative $517,454 due to the write off of previous bond
issuance costs which were being amortized over the life of the bonds. With the implementation of GASB Statement
No. 65, the County is required to expense these amounts as the bonds are issued and to apply this charge retroactively.
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Required Supplementary Information
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QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2014
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 FUNDING PROGRESS
The Schedule of Funding Progress presents multiyear trend information that shows whether the actuarial value of
plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
(A) (B - A) ((B - A) / C)
Value of (B) Unfunded UAAL as a
Assets at Accrued Accrued (A / B) (C) Percentage
Valuation Valuation Liability Liability Funded Covered of Covered
Funding Progress Date Date (AAL) (UAAL) Ratio Payroll Payroll
Queen Anne's County July 1, 2008 $ - $ 49,107,000 $ 49,107,000 0.00% $ 23,690,163 207%
July 1, 2009 500,000 63,935,000 6 3,435,000 0.78% 23,778,696 267%
July 1, 2010 500,000 70,570,000 7 0,070,000 0.71% 20,439,972 343%
July 1, 2011 77,000 76,949,000 7 6,872,000 0.10% 18,903,632 407%
July 1, 2012 82,000 93,915,000 9 3,833,000 0.09% 17,640,063 532%
July 1, 2013 976,790 95,676,000 9 4,699,210 1.02% 17,953,154 527%
Board of Education July 1, 2008 - 62,759,000 6 2,759,000 0.00% 24,267,735 259%
July 1, 2009 500,000 67,450,000 6 6,950,000 0.74% 28,421,068 236%
July 1, 2010 500,000 73,060,000 7 2,560,000 0.68% 28,329,494 256%
July 1, 2011 502,358 77,831,000 7 7,328,642 0.65% 29,268,937 264%
July 1, 2012 543,000 87,399,000 8 6,856,000 0.62% 30,809,561 282%
July 1, 2013 504,292 93,096,000 9 2,591,708 0.54% 33,683,018 275%
Library July 1, 2008 - 2,010,000 2,010,000 0.00% 1,050,748 191%
July 1, 2009 30,000 2,614,000 2,584,000 1.15% 1,128,084 229%
July 1, 2010 30,000 2,902,000 2,872,000 1.03% 1,225,057 234%
July 1, 2011 30,000 3,094,000 3,064,000 0.97% 971,915 315%
July 1, 2012 32,000 3,084,000 3,052,000 1.04% 977,254 312%
July 1, 2013 30,258 3,140,000 3,109,742 0.96% 1,039,494 299%
Total July 1, 2008 - 113,876,000 113,876,000 0.00% 49,008,646 232%
July 1, 2009 1,030,000 133,999,000 132,969,000 0.77% 53,327,848 249%
July 1, 2010 1,030,000 146,532,000 145,502,000 0.70% 49,994,523 291%
July 1, 2011 609,358 157,874,000 157,264,642 0.39% 49,144,484 320%
July 1, 2012 657,000 184,398,000 183,741,000 0.36% 49,426,878 372%
July 1, 2013 $ 1 ,511,340 $ 191,912,000 $ 190,400,660 0.79% $ 52,675,666 361%
Analysis of the dollar amounts of plan net assets, actuarial accrued liability, and unfunded actuarial liability in isolation
can be misleading. Expressing the assets as a percentage of the actuarial accrued liability (Funded Ratio) provides one
indication of the system’s funding status on a going-concern basis. Analysis of this percentage over time indicates
whether the system is becoming financially stronger or weaker. Generally, the greater this percentage, the stronger the
system is becoming. In this fiscal year, the Funded Ratio is 0.79 percent, up from 0.36 percent the year before.
Trends in the unfunded actuarial accrued liability and annual covered payroll are both affected by inflation. Expressing
the unfunded accrued liability as a percentage of annual covered payroll approximately adjusts for the effects of inflation
and aids analysis of the system’s progress made in accumulating sufficient assets to pay benefits when due. Generally,
the smaller this percentage, the stronger the system is becoming. In this fiscal year, the UAAL as a percentage of
covered payroll is 361 percent, down from 372 percent the year before.
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, 2014
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ 63,889,716 $ 64,274,716 $ 64,666,451 $ 391,735
Local Income Tax 38,984,963 40,327,126 40,326,921 (205)
Admission and Amusement Taxes 176,750 176,750 155,336 (21,414)
Recordation Taxes 2,650,000 2,968,257 2,978,677 10,420
Hotel Taxes 435,000 435,000 447,970 12,970
County Transfer Taxes 600,000 600,000 730,587 130,587
State Shared Taxes 556,194 556,194 466,734 (89,460)
Licenses and Permits 865,089 957,089 1,080,891 123,802
Intergovernmental 1,781,365 1,983,675 1,873,173 (110,502)
Bond Interest Reimbursement - Build America Bond 380,027 380,027 383,777 3,750
Charges for Current Services 2,029,193 2,139,343 2,252,711 113,368
Fines and Forfeitures 23,300 23,650 66,869 43,219
Investment Income 50,000 50,000 53,640 3,640
Donations 1,800 3,859 8,595 4,736
Miscellaneous 725,783 728,425 769,210 40,785
Total Revenues 113,149,180 115,604,111 116,261,542 657,431
EXPENDITURES
GENERAL GOVERNMENT
Legislative 356,747 356,747 335,803 20,944
Public Information 240,103 258,603 258,134 469
Judicial
Circuit Court 519,910 484,350 379,463 104,887
Orphan's Court 76,163 76,163 63,895 12,268
State's Attorney 1,061,996 1,061,996 1,056,349 5,647
County Administrator 263,986 270,486 270,287 199
Board of Elections 453,880 453,880 440,806 13,074
Finance Office 998,141 998,141 955,802 42,339
Human Resources 474,915 474,915 455,207 19,708
Planning and Zoning 1,804,239 1,981,464 1,978,904 2,560
Information Technology 694,668 694,668 595,514 99,154
General Services 2,110,152 2,245,152 2,241,271 3,881
Legal Services 392,622 529,422 527,219 2,203
Total General Government 9,447,522 9,885,987 9,558,654 327,333
PUBLIC SAFETY
Sheriff's Office 6,559,366 7,014,197 6,964,724 49,473
Volunteer Fire and Rescue Services 3,120,559 3,225,559 3,221,639 3,920
Detention Center 4,344,256 4,344,256 4,184,996 159,260
Emergency Services 6,883,063 7,047,292 6,982,406 64,886
Total Public Safety 20,907,244 21,631,304 21,353,765 277,539
PUBLIC WORKS
Administration 278,500 261,715 241,488 20,227
Solid Waste Disposal 1,666,900 1,666,900 1,419,431 247,469
Engineering Division 686,571 669,786 650,301 19,485
Roads Division 5,133,324 5,145,132 4,543,074 602,058
Parks 2,668,332 2,572,356 2,090,831 481,525
Total Public Works 10,433,627 10,315,889 8,945,125 1,370,764
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, 2014
(CONTINUED)
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
HEALTH AND SOCIAL SERVICES
Health Department $ 2,069,587 $ 2,087,587 $ 2,030,740 $ 56,847
Social Services 299,017 299,017 282,134 16,883
Total Health and Social Services 2,368,604 2,386,604 2,312,874 73,730
EDUCATION AND LIBRARY
Board of Education 46,730,398 46,730,398 46,730,398 -
Teacher Pensions 1,401,286 1,401,286 1,401,286 -
Chesapeake College 1,667,522 1,702,661 1,699,988 2,673
Queen Anne's County Free Library 1,310,250 1,310,250 1,310,250 -
Total Education and Library 51,109,456 5 1,144,595 5 1,141,922 2,673
CONSERVATION OF NATURAL RESOURCES
Cooperative Extension Service 256,927 263,289 263,176 113
Soil Conservation Service 194,219 194,219 169,091 25,128
Weed Control 112,896 112,896 101,417 11,479
4-H Park 67,878 73,250 73,250 -
Total Conservation of Natural Resources 631,920 643,654 606,934 36,720
ECONOMIC AND COMMUNITY DEVELOPMENT
Economic Development & Tourism 331,375 433,633 431,860 1,773
Recreation 493,435 501,435 492,700 8,735
Total Economic and Community Development and Recreation 824,810 935,068 924,560 10,508
DEBT SERVICE
School Debt Service - Principal 5,532,432 5,532,432 5,532,431 1
School Debt Service - Interest 2,496,868 2,496,868 2,496,865 3
County Debt Service - Principal 1,618,442 1,618,442 1,600,366 18,076
County Debt Service - Interest 1,016,747 1,016,747 1,003,914 12,833
Total Debt Service 10,664,489 10,664,489 10,633,576 30,913
INTERGOVERNMENTAL
Aid to Municipalities 228,686 228,686 228,686 -
SDAT Costs from State 219,269 219,269 207,663 11,606
Total Intergovernmental 447,955 447,955 436,349 11,606
CONTINUED
-106-

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, 2014
(CONTINUED)
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
MISCELLANEOUS
Aid to Other Agencies $ 31,525 $ 31,525 $ 27,402 $ 4,123
Insurance & Benefits / Reversions 2,640,682 1,780,682 1,772,232 8,450
Transfer to OPEB Fund 437,000 437,000 437,000 -
Contingencies 780,683 240,183 205,079 35,104
Miscellaneous Non-Departmental 375,400 337,282 324,355 12,927
Total Miscellaneous 4,265,290 2,826,672 2,766,068 60,604
Total Expenditures 111,100,917 110,882,217 108,679,827 2,202,390
Excess of Revenues Over Expenditures 2,048,263 4,721,894 7,581,715 2,859,821
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - 109,100 109,100 -
Insurance Proceeds - - 61,942 61,942
Transfers In From:
Impact Fees - School 775,000 775,000 - (775,000)
Drug Task Force - 40,370 40,370 -
Total Transfers In 775,000 815,370 40,370 (775,000)
Transfers Out To:
General Capital Projects Fund 336,147 2,336,147 2,336,147 -
Roads Capital Projects Fund 250,000 1,050,000 1,050,000 -
Department of Aging 1,222,770 1,222,770 1,056,944 165,826
Department of Housing and Community Services 452,923 452,923 362,510 90,413
Community Partnerships 161,266 161,266 153,034 8,232
Impact Fees - Fire Companies/Contingencies - 82,257 82,256 1
Sanitary District - Water 83,109 83,109 83,109 -
Airport Enterprise Fund 63,202 63,202 62,668 534
Golf Course Enterprise Fund 253,846 253,846 172,348 81,498
Total Transfers Out 2,823,263 5,705,520 5,359,016 346,504
Total Other Financing (Uses) (2,048,263) (4,781,050) (5,147,604) (366,554)
Net Increase (Decrease) in Fund Balance $ - $ (59,156) 2,434,111 $ 2,493,267
Fund Balance, July 1 15,987,396
Fund Balance, June 30 $ 18,421,507
-107-

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.
-108-

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.
-109-

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.
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.
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.
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.
-110-

Kent Narrows – This fund accounts for activities funded by tax revenues to repay parking improvement
bonds 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.
-111-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2014
COMMUNITY
HOUSING AND ECONOMIC PARTNERSHIPS
DEPARTMENT COMMUNITY REVOLVING DEVELOPMENT FOR CRITICAL
OF AGING SERVICES LOAN FUND INCENTIVE CHILDREN AREAS
ASSETS
Cash and Cash Equivalents $ 147,303 $ 1,470,655 $ 450,886 $ 1,445,103 $ 723,603 $ 163,956
Receivables
Accounts Receivable (Net) - 7,041 11,005 100,000 2,438 -
Loans Receivable - 4,128,960 111,176 - - -
Special Assessments (Net) - - - - - -
Due from Other Governments 140,661 70,960 - 43,688 130,240 -
Total Assets $ 287,964 $ 5,677,616 $ 573,067 $ 1,588,791 $ 856,281 $ 163,956
LIABILITIES
Accrued Liabilities $ 76,590 $ 40,510 $ - $ 300,000 $ 273,536 $ -
Due to Other Funds 81,386 90,324 - - - -
Due to Other Governmental Agencies 3,011 3,136 - - 311,155 -
Unearned Revenue - 44,171 - - 145,656 -
Total Liabilities 160,987 178,141 - 300,000 730,347 -
DEFERRED INFLOWS OF RESOURCES
Unavailable Benefit Assessments - - - - - -
Unavailable Fees - - - - - -
Total Deferred Inflows - - - - - -
FUND BALANCES
Nonspendable - 4,128,960 111,176 - - -
Restricted 4,265 1,424,348 461,891 1,288,791 - 163,956
Assigned 122,712 - - - 125,934 -
Unassigned - (53,833) - - - -
Total Fund Balances 126,977 5,499,475 573,067 1,288,791 125,934 163,956
Total Liabilities, Deferred Inflows and Fund
Balances $ 287,964 $ 5,677,616 $ 573,067 $ 1,588,791 $ 856,281 $ 163,956
-112-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2014
(CONTINUED)
SHERIFF'S
DRUG PURCHASE OF
LAW TASK INMATE AGRICULTURAL RURAL DEVELOPMENT
LIBRARY FORCE WELFARE TRANSFER LEGACY RIGHTS
$ 52,923 $ 266,457 $ 243,493 $ 15,029 $ 420,119 $ 550
- - 8,737 - - -
- - - - - -
- - - - - -
- - - - - -
$ 52,923 $ 266,457 $ 252,230 $ 15,029 $ 420,119 $ 550
$ 560 $ 130,362 $ 6,456 $ 10 $ - $ -
- - - - - -
- - 9,739 - - -
- - - - - -
560 130,362 16,195 1 0 - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- 136,095 236,035 15,019 420,119 550
52,363 - - - - -
- - - - - -
52,363 136,095 236,035 15,019 420,119 550
$ 52,923 $ 266,457 $ 252,230 $ 15,029 $ 420,119 $ 550
CONTINUED
-113-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2014
(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 $ 18,232 $ 282,583 $ 3,553,959 $ 383,716 $ 578,174 $ 10,216,741
Receivables
Accounts Receivable (Net) 5 4 - - - - 129,275
Loans Receivable - - 716,158 81,775 77,336 5,115,405
Special Assessments (Net) 549,747 - - - - 549,747
Due from Other Governments - - - - - 385,549
Total Assets $ 568,033 $ 282,583 $ 4,270,117 $ 465,491 $ 655,510 $ 16,396,717
LIABILITIES AND FUND BALANCES
Accrued Liabilities $ - $ - $ - $ - $ - $ 828,024
Due to Other Funds - - - 61,967 - 233,677
Due to Other Governmental Agencies - - - - - 327,041
Unearned Revenue - - - - - 189,827
Total Liabilities - - - 61,967 - 1,578,569
DEFERRED INFLOWS OF RESOURCES
Unavailable Benefit Assessments 549,747 - - - - 549,747
Unavailable Fees - - 716,158 81,775 77,336 875,269
Total Deferred Inflows 549,747 - 716,158 81,775 77,336 1,425,016
Fund Balances
Nonspendable - - - - - 4,240,136
Restricted 18,286 282,583 3,553,959 383,716 578,174 8,967,787
Assigned - - - - - 301,009
Unassigned - - - (61,967) - (115,800)
Total Fund Balances 18,286 282,583 3,553,959 321,749 578,174 13,393,132
Total Liabilities and Fund Balances $ 568,033 $ 282,583 $ 4,270,117 $ 465,491 $ 655,510 $ 16,396,717
-114-

-115-

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, 2014
COMMUNITY
HOUSING AND ECONOMIC PARTNERSHIPS
DEPARTMENT COMMUNITY REVOLVING DEVELOPMENT FOR CRITICAL
OF AGING SERVICES LOAN FUND INCENTIVE CHILDREN AREAS
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ -
Recordation Taxes - 133,453 - 444,842 - -
State Shared Taxes - - - - - -
Intergovernmental 1,009,269 61,414 - - 886,618 -
Charges for Current Services 65,537 505,000 - - - 11,612
Fines and Forfeitures - - - - - -
Investment Income 5 0 3,544 6 ,423 471 4 2 -
Donations 30,460 - - - - -
Miscellaneous 1,675 - - - 20,079 -
Total Revenues 1,106,991 703,411 6 ,423 445,313 906,739 11,612
EXPENDITURES
Current
General Government - - - - - -
Public Safety - - - - - -
Social Services 2,106,152 - - - 1,086,600 -
Conservation of Natural Resources - - - - - -
Economic/Community Development - 545,529 2 5,000 226,000 - -
Capital Outlay - - - - - -
Debt Service
Principal - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 2,106,152 545,529 2 5,000 226,000 1,086,600 -
Excess of Revenues Over (Under) Expenditures (999,161) 157,882 (18,577) 219,313 (179,861) 11,612
OTHER FINANCING SOURCES (USES)
Issuance of Debt - - - - - -
Transfers In 1,056,944 362,510 - 750,000 153,034 -
Transfers Out - - - - - -
Other Financing Sources (Uses) 1,056,944 362,510 - 750,000 153,034 -
Net Increase (Decrease) in Fund Balances 57,783 520,392 (18,577) 969,313 (26,827) 11,612
Fund Balances, July 1 69,194 4,979,083 5 91,644 319,478 152,761 152,344
Fund Balances, June 30 $ 126,977 $ 5,499,475 $ 573,067 $ 1,288,791 $ 125,934 $ 163,956
-116-

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, 2014
(CONTINUED)
SHERIFF'S
DRUG PURCHASE OF
LAW TASK INMATE AGRICULTURAL RURAL DEVELOPMENT
LIBRARY FORCE WELFARE TRANSFER LEGACY RIGHTS
$ - $ - $ - $ - $ - $ -
- - - - - -
- - - 45,567 - -
- - - - - -
12,867 - 102,216 - - -
14,731 59,915 - - - -
2 8 2 16 1 56 - 2 89 5 48
- - - - - -
- 4,650 35,989 - - -
27,626 64,781 138,361 45,567 2 89 5 48
10,773 - - - - -
- 63,133 114,639 - - -
- - - - - -
- - - 111,791 - 1,538,640
- - - - - -
- 7,757 2,531 - - -
- - - - - 33,339
- - - - - 4 51
10,773 70,890 117,170 111,791 - 1,572,430
16,853 (6,109) 21,191 ( 66,224) 2 89 (1,571,882)
- - - - - -
- - - - - -
- (40,370) - - - -
- (40,370) - - - -
16,853 (46,479) 21,191 ( 66,224) 2 89 (1,571,882)
35,510 182,574 214,844 81,243 419,830 1,572,432
$ 52,363 $ 136,095 $ 236,035 $ 15,019 $ 420,119 $ 550
CONTINUED
-117-

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, 2014
(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 $ - $ 35,171 $ - $ - $ - $ 35,171
Recordation Taxes - - - - - 578,295
State Shared Taxes - - - - - 45,567
Intergovernmental - - - - - 1,957,301
Charges for Current Services 4 4,178 - 1,721,379 303,754 205,949 2,972,492
Fines and Forfeitures - - - - - 74,646
Investment Income 379 - 1,365 258 3 27 14,096
Donations - - - - - 30,460
Miscellaneous - - - - - 62,393
Total Revenues 4 4,557 35,171 1,722,744 304,012 206,276 5,770,421
EXPENDITURES
Current
General Government - - - - - 10,773
Public Safety - - - 319,613 - 497,385
Social Services - - - - - 3,192,752
Conservation of Natural Resources 1 5,542 - - - - 1,665,973
Economic/Community Development - 10,000 - - - 806,529
Capital Outlay - - - - - 10,288
Debt Service
Principal 4 4,425 - - - - 77,764
Interest and Fiscal Charges - - - - - 4 51
Total Expenditures 5 9,967 10,000 - 319,613 - 6,261,915
Excess of Revenues Over (Under) Expenditures (15,410) 25,171 1,722,744 (15,601) 206,276 (491,494)
OTHER FINANCING SOURCES (USES)
Issuance of Debt 1 5,542 - - - - 15,542
Transfers In - - - 82,256 - 2,404,744
Transfers Out - - - - - (40,370)
Other Financing Sources (Uses) 1 5,542 - - 82,256 - 2,379,916
Net Increase (Decrease) in Fund Balances 132 25,171 1,722,744 66,655 206,276 1,888,422
Fund Balances, July 1 1 8,154 257,412 1,831,215 255,094 371,898 11,504,710
Fund Balances, June 30 $ 1 8,286 $ 282,583 $ 3,553,959 $ 321,749 $ 578,174 $ 13,393,132
-118-

-119-

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, 2014
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 - - - - 120,000 120,000 133,453 13,453
State Shared Taxes - - - - - - - -
Intergovernmental 834,467 914,079 1,009,269 95,190 168,113 229,763 61,414 (168,349)
Charges for Current Services 61,350 61,350 65,537 4,187 155,000 155,000 505,000 350,000
Fines and Forfeitures - - - - - - - -
Investment Income - - 50 50 - - 3,544 3,544
Donations 36,000 36,000 30,460 (5,540) - - - -
Miscellaneous 1,000 1,000 1,675 675 - - - -
Total Revenues 932,817 1,012,429 1,106,991 94,562 443,113 504,763 703,411 198,648
EXPENDITURES
Current Operating Expenditures 2,155,587 2,235,199 2,106,152 129,047 1,124,752 1,416,402 545,529 870,873
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Interest and Fiscal Charges - - - - - - - -
Total Expenditures 2,155,587 2,235,199 2,106,152 129,047 1,124,752 1,416,402 545,529 870,873
Excess of Revenues Over (Under) Expenditures (1,222,770) ( 1,222,770) ( 999,161) 223,609 (681,639) (911,639) 157,882 1,069,521
OTHER FINANCING SOURCES (USES)
Issuance of Debt - - - - - - - -
Transfers In 1,222,770 1,222,770 1,056,944 (165,826) 452,923 452,923 362,510 (90,413)
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) 1,222,770 1,222,770 1,056,944 (165,826) 452,923 452,923 362,510 (90,413)
Net Increase (Decrease) in Fund Balances $ - $ - 57,783 $ 57,783 $ (228,716) $ (458,716) 520,392 $ 979,108
Fund Balances, July 1 69,194 4,979,083
Fund Balances, June 30 $ 126,977 $ 5,499,475
-120-

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, 2014
(CONTINUED)
ECONOMIC DEVELOPMENT INCENTIVE COMMUNITY PARTNERSHIPS FOR CHILDREN LAW LIBRARY
VARIANCE VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
350,000 350,000 444,842 94,842 - - - - - - - -
- - - - - - - - - - - -
- - - - 883,258 945,338 886,618 ( 58,720) - - - -
- - - - - - - - 1 0,000 10,000 12,867 2,867
- - - - - - - - 1 5,325 15,325 14,731 ( 594)
- - 471 471 - - 42 42 1 5 15 28 13
- - - - - - - - - - - -
- - - - - 17,165 20,079 2,914 - - - -
350,000 350,000 445,313 95,313 883,258 962,503 906,739 ( 55,764) 2 5,340 25,340 27,626 2,286
350,000 1,100,000 226,000 874,000 1,044,524 1,123,769 1,086,600 37,169 2 5,340 25,340 10,773 14,567
- - - - - - - - - - - -
- - - - - - - - - - - -
- - - - - - - - - - - -
350,000 1,100,000 226,000 874,000 1,044,524 1,123,769 1,086,600 37,169 2 5,340 25,340 10,773 14,567
- ( 750,000) 219,313 969,313 (161,266) (161,266) ( 179,861) ( 18,595) - - 16,853 16,853
- - - - - - - - - - - -
- 750,000 750,000 - 161,266 161,266 153,034 ( 8,232) - - - -
- - - - - - - - - - - -
- 750,000 750,000 - 161,266 161,266 153,034 ( 8,232) - - - -
$ - $ - 969,313 $ 969,313 $ - $ - ( 26,827) $ ( 26,827) $ - $ - 16,853 $ 16,853
319,478 152,761 35,510
$ 1,288,791 $ 125,934 $ 52,363
CONTINUED
-121-

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, 2014
(CONTINUED)
INMATE WELFARE AGRICULTURAL TRANSFER
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 45,567 5,567
Intergovernmental - - - - - - -
Charges for Current Services 60,000 120,000 102,216 (17,784) - - - -
Fines and Forfeitures - - - - - - - -
Investment Income 250 250 156 (94) - - - -
Donations - - - - - - - -
Miscellaneous 3 0,000 30,000 35,989 5,989 - - - -
Total Revenues 90,250 150,250 138,361 (11,889) 40,000 40,000 45,567 5,567
EXPENDITURES
Current Operating Expenditures 90,250 140,250 114,639 25,611 40,000 111,791 111,791 -
Capital Outlay - 10,000 2,531 7,469 - - - -
Debt Service
Principal - - - - - - - -
Interest and Fiscal Charges - - - - - - - -
Total Expenditures 90,250 150,250 117,170 33,080 40,000 111,791 111,791 -
Excess of Revenues Over (Under) Expenditures - - 21,191 21,191 - (71,791) (66,224) 5,567
OTHER FINANCING SOURCES (USES)
Issuance of Debt - - - - - - - -
Transfers In - - - - - - - -
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) - - - - - - - -
Net Increase (Decrease) in Fund Balances $ - $ - 21,191 $ 21,191 $ - $ (71,791) (66,224) $ 5,567
Fund Balances, July 1 214,844 81,243
Fund Balances, June 30 $ 236,035 $ 15,019
-122-

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, 2014
(CONTINUED)
PURCHASE OF DEVELOPMENT RIGHTS DREDGING SPECIAL ASSESSMENTS KENT NARROWS
VARIANCE VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ - $ 38,000 $ 38,000 $ 35,171 $ ( 2,829)
- - - - - - - - - - - -
- - - - - - - - - - - -
- - - - - - - - - - - -
- - - - 69,294 6 9,294 4 4,178 (25,116) - - - -
- - 548 548 - - - - - - - -
- - - - - - 3 79 379 - - - -
- - - - - - - - - - - -
- - - - - - - - - - - -
- - 548 548 69,294 69,294 4 4,557 (24,737) 38,000 38,000 35,171 ( 2,829)
- 1,538,640 1,538,640 - - - 1 5,542 (15,542) 38,000 38,000 10,000 28,000
- - - - - - - - - - - -
33,450 33,450 33,339 111 69,294 6 9,294 4 4,425 24,869 - - - -
550 550 451 99 - - - - - - - -
34,000 1,572,640 1,572,430 210 69,294 69,294 5 9,967 9,327 38,000 38,000 10,000 28,000
(34,000) (1,572,640) (1,571,882) 758 - - (15,410) (15,410) - - 25,171 25,171
- - - - - - 1 5,542 15,542 - - - -
- - - - - - - - - - - -
- - - - - - - - - - - -
- - - - - - 1 5,542 15,542 - - - -
$ (34,000) $ (1,572,640) (1,571,882) $ 758 $ - $ - 1 32 $ 132 $ - $ - 25,171 $ 25,171
1,572,432 1 8,154 257,412
$ 550 $ 18,286 $ 282,583
CONTINUED
-123-

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, 2014
(CONTINUED)
CAPITAL PROJECTS - SCHOOL IMPACT FEES CAPITAL PROJECTS - FIRE COMPANY IMPACT FEES
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 - - - - - - - -
Intergovernmental - - - - - - - -
Charges for Current Services 775,000 775,000 1,721,379 946,379 200,000 200,000 303,754 103,754
Fines and Forfeitures - - - - - - - -
Investment Income - - 1,365 1,365 500 500 258 ( 242)
Donations - - - - - - - -
Miscellaneous - - - - - - - -
Total Revenues 775,000 775,000 1,722,744 947,744 200,500 200,500 304,012 103,512
EXPENDITURES
Current Operating Expenditures - - - - 200,500 387,449 319,613 67,836
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Interest and Fiscal Charges - - - - - - - -
Total Expenditures - - - - 200,500 387,449 319,613 67,836
Excess of Revenues Over (Under) Expenditures 775,000 775,000 1,722,744 947,744 - ( 186,949) (15,601) 171,348
OTHER FINANCING SOURCES (USES)
Issuance of Debt - - - - - - - -
Transfers In - - - - - 82,257 82,256 ( 1)
Transfers Out (775,000) (775,000) - 775,000 - - - -
Total Other Financing Sources (Uses) (775,000) (775,000) - 775,000 - 82,257 82,256 ( 1)
Net Increase (Decrease) in Fund Balances $ - $ - 1,722,744 $ 1,722,744 $ - $ ( 104,692) 66,655 $ 171,347
Fund Balances, July 1 1,831,215 255,094
Fund Balances, June 30 $ 3,553,959 $ 321,749
-124-

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, 2014
(CONTINUED)
CAPITAL PROJECTS - PARKS & RECREATION IMPACT FEES
VARIANCE
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ -
- - - -
- - - -
- - - -
80,000 80,000 205,949 125,949
- - - -
400 400 327 (73)
- - - -
- - - -
80,400 80,400 206,276 125,876
- - - -
- - - -
- - - -
- - - -
- - - -
80,400 80,400 206,276 125,876
- - - -
- - - -
(80,400) (80,400) - 80,400
(80,400) (80,400) - 80,400
$ - $ - 206,276 $ 206,276
371,898
$ 578,174
-125-

-126-

CAPITAL PROJECTS FUNDS
Capital Projects Funds are 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.
We do not amend closed projects in the General Capital Projects Fund or Roads Capital Projects Fund. The
names of these projects begin with a CLS. Once the project is closed, it is considered null and void and
there is no remaining authority, and therefore we do not amend those after the fact.
Force in kind capital projects do not contain any budget authority. These projects are only intended as a
tracking tool. Most costs associated with force in kind projects are related to staff costs and the project is
attached to the employee’s normal activity, which contains the budget authority.
General Capital Projects – This fund accounts for capital project activities funded by all governmental
resources, except those reserved for use in the Roads Capital Projects Fund, noted below.
Roads Capital Projects - This fund accounts for capital project activities funded by governmental
resources specifically reserved for use in the Roads Capital Projects Fund. These resources consist of
State-Shared Highway User Tax, which is mandated for this use, plus federal, state, and local roads-related
grants and transfers, and also governmental resources.
-127-

QUEEN ANNE'S COUNTY MARYLAND
CAPITAL PROJECTS FUNDS
SCHEDULE OF APPROPRIATIONS AND EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2014
EXPENDITURES INCLUDED IN CAPITALIZED
TOTAL PRIOR CURRENT UNEXPENDED CONSTRUCTION CURRENT
PROJ # GENERAL CAPITAL PROJECTS: APPROPRIATION YEARS YEAR TOTAL APPROPRIATIONS IN PROGRESS YEAR
GENERAL GOVERNMENT
400003 County Facilities Program $ 1 ,500,446 $ 1 ,224,995 $ 1 98,132 $ 1,423,127 $ 77,319 $ - $ -
400007 GASB/Tax System Update 3 49,000 1 69,350 1 03,090 272,440 76,560 - -
400015 County Wide Mapping 9 80,000 7 73,104 8 1,340 854,444 125,556 - -
400027 Strategic Planning 5 76,602 386,834 - 386,834 189,768 - -
400031 Mgt Info Systems Network 1 ,377,375 7 90,090 2 21,292 1,011,382 365,993 - 71,359
400269 Tax Ditches - Beaverdam 1 04,500 5 9,210 2 4,286 83,496 21,004 - -
400271 Tax Ditches - Longmarsh 1 14,000 5 8,090 4 ,545 62,635 51,365 - -
400359 Public Drainage 7 50,000 2 5,867 451,937 477,804 272,196 - -
400457 GIS & Strategic Plan Land Use 1 27,500 2 2,661 - 22,661 104,839 - -
400491 Emergency Generators 8 0,000 - - - 80,000 - -
400559 Courthouse Property 3 ,975,751 1 ,343,114 146,760 1,489,874 2,485,877 146,760 146,760
400647 Watershed Improvement Program 3 00,000 - - - 300,000 - -
400653 Coastal Community Initiative 7 0,705 6 4,498 - 64,498 6,207 - -
400675 IT Fiber Infrastructure 7 30,000 1 14,652 6 9,328 183,980 546,020 183,980 69,328
400691 PHA Debt Charge - 6 3,672 6 6,499 130,171 (130,171) - -
400713 Lighting Upgrade - Facilities 1 00,000 - 2 2,986 22,986 77,014 22,986 22,986
400715 Capital Equipment - General Services 1 00,000 - 8 5,922 85,922 14,078 - 85,622
400733 Circuit Court - Security Equipment 9 2,953 - 8 1,356 81,356 11,597 - 81,356
400735 CLS-State Street Trail Easement 3 0,000 - 3 0,000 30,000 - - 30,000
Total General Government 1 1,358,832 5 ,096,137 1 ,587,473 6,683,610 4,675,222 353,726 507,411
PUBLIC SAFETY
400217 Transfer to VFDs 2 ,079,800 1 ,425,159 404,518 1,829,677 250,123 - -
400281 Detention Center Furniture & Carpet 3 0,000 - - - 30,000 - -
400313 County Wide Mapping - 911 8 15,530 7 94,469 - 794,469 21,061 - -
400499 CLS-Railroad Avenue Building Renovation 6 57,700 6 26,006 3 2,534 658,540 (840) - 32,534
400661 Fiber Optic - Detention Center 5 0,000 8 ,840 3 8,501 47,341 2,659 - 38,501
400663 Sheriff Cars - Replacement 6 23,725 347,345 2 39,033 586,378 37,347 - 233,140
400667 EMS - Rt 8 Garage 6 8,845 6 4,550 4 ,133 68,683 162 - -
400669 EMS - Hardware Replacement 1 25,580 9 2,206 2 9,872 122,078 3,502 118,624 29,872
400671 EMS - Wireless Network 1 04,420 3 4,414 6 9,802 104,216 204 104,216 69,802
400673 EMS - Radio System Upgrade 3 ,270,000 7 2,834 3 ,202,397 3,275,231 (5,231) 3,275,231 3,202,397
400683 EMS - Lifepak 12 Upgrade 6 6,738 - 1 5,061 15,061 51,677 - 15,061
400711 EMS - Replacement Vehicles 6 53,021 409,996 2 42,624 652,620 401 - 241,860
400717 EMS - North County Station 3 75,000 - - - 375,000 - -
400719 Detention Center - Transport Vehicles 5 2,000 - 3 0,148 30,148 21,852 - 30,148
400721 Animal Services Capital Equipment 5 0,000 - 4 2,596 42,596 7,404 - 42,596
Total Public Safety 9 ,022,359 3 ,875,819 4 ,351,219 8,227,038 795,321 3,498,071 3,935,911
CONTINUED
-128-

QUEEN ANNE'S COUNTY MARYLAND
CAPITAL PROJECTS FUNDS
SCHEDULE OF APPROPRIATIONS AND EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2014
(CONTINUED)
EXPENDITURES INCLUDED IN CAPITALIZED
TOTAL PRIOR CURRENT UNEXPENDED CONSTRUCTION CURRENT
PROJ # GENERAL CAPITAL PROJECTS: APPROPRIATION YEARS YEAR TOTAL APPROPRIATIONS IN PROGRESS YEAR
PUBLIC WORKS
400077 Wetlands Mitigation $ 2 16,560 $ 1 59,900 $ 1 ,178 $ 161,078 $ 55,482 $ - $ -
400091 DPW - Fee In Lieu 2 0,000 2 0,000 - 20,000 - - -
400215 Preventive Park Maintenance 1 ,220,480 8 63,792 5 4,054 917,846 302,634 - -
400221 Parks Capital Equipment 4 40,479 290,479 1 43,389 433,868 6,611 - 139,089
400235 Solid Waste Capital Equipment 5 47,001 3 20,014 1 54,163 474,177 72,824 - 150,028
400241 Cash Deposit Agreements 3 5,748 3 5,748 - 35,748 - - -
400305 White Marsh Park 2 ,397,291 2 ,380,673 - 2,380,673 16,618 - -
400391 Cross County Connec Trail PS1 1 ,932,688 6 0,935 6 4,649 125,584 1,807,104 125,584 64,649
400393 Davidson Property Improvements 8 58,444 7 7,112 8 63 77,975 780,469 77,112 -
400501 DPW Yard MTBE Remediation 2 00,000 135,405 2 6,376 161,781 38,219 - -
400509 Solid Waste Loader Replacement 6 3,626 - - - 63,626 - -
400513 Bay City/Matapeake Trail 3 0,000 - - - 30,000 - -
400519 Talisman/Kudner Improvements 6 ,855 - - - 6,855 - -
400521 County Complex 8 ,184,120 1 ,627,342 185,582 1,812,924 6,371,196 198,850 185,582
400529 CLS-Chesapeake Pool Improvements 1 00,000 8 0,414 - 80,414 19,586 - -
400607 Grasonville Tennis Courts 4 0,000 - - - 40,000 - -
400657 BOE Tournament Field Maintenance 2 0,670 4 ,438 3 ,675 8,113 12,557 - -
400659 QAC Tournament Field Maintenance 4 2,158 5 70 2 25 795 41,363 - -
400677 Transfer Station Improvements 1 00,000 1 6,128 - 16,128 83,872 16,128 -
400681 CLS-Ferry Point - Habitat Enhancement 1 ,106,405 5 6,435 1 ,040,225 1,096,660 9,745 - 1,040,225
400693 CLS-Coastsmart Initiative 5 5,000 4 5,688 9 ,310 54,998 2 - -
400701 CLS-Rt 18 Trails - Phase III 3 7,630 - 3 6,348 36,348 1,282 - -
400703 Old Love Point Park 3 0,000 - 2 5,848 25,848 4,152 - 25,848
400705 Conquest Greenhouse 2 6,885 6 ,683 8 ,864 15,547 11,338 - -
400707 Rubble Surcharge 6 95,944 3 3,760 8 1,475 115,235 580,709 - 81,475
400723 Church Hill Park Irrigation 6 0,000 - - - 60,000 - -
400725 Rt 18 Ballfield Lighting 2 40,000 - 2 00,747 200,747 39,253 - 200,747
400727 Golf Course Allocation 2 70,000 - - - 270,000 - -
400729 CEC Emergency Bulkhead Repair 4 5,000 - 3 5,634 35,634 9,366 - -
400731 Coastal Bays Grant - Kennard 7 ,000 - 4 ,800 4,800 2,200 - -
Total Public Works 1 9,029,984 6 ,215,516 2 ,077,405 8,292,921 10,737,063 417,674 1,887,643
SOCIAL SERVICES
400679 Aging - Transportation Development Plan 1 00,000 - - - 100,000 - -
400699 Aging - Vehicle Replacement 2 5,176 - - - 25,176 - -
Total Social Services 1 25,176 - - - 125,176 - -
EDUCATION
700239 Cheapeake College - Health & Athletic Building 7 ,041,365 - 7 ,041,365 7,041,365 - - -
Allocations to Component Unit - Board of Education
700151 CLS-Bayside Elementary HVAC 1 ,039,789 1 ,039,789 - 1,039,789 - - -
700157 CLS-QACHS Field Upgrades 5 11,777 5 11,777 - 511,777 - - -
700161 CLS-Financial Hardware System 5 9,964 5 9,964 - 59,964 - - -
700169 CLS-New Sudlersville Middle School (1) 2 8,017,016 16,023,293 2 4,134 16,047,427 11,969,589 - -
700177 CLS-BOE Security Entrance & Cameras 1 60,000 1 60,000 - 160,000 - - -
700179 CLS-Centreville Middle Boiler (1) 2 24,348 9 1,348 - 91,348 133,000 - -
700183 CLS-Centreville Elementary - Resurface Playcourts 2 9,766 2 9,516 - 29,516 250 - -
700187 CLS-Kennard Elementary Addition (1) 3 ,972,791 1 ,951,583 1 47,208 2,098,791 1,874,000 - -
700193 CLS-Security Entrance & Cameras 6 5,000 6 5,000 - 65,000 - - -
700195 Equipment & Vehicles 2 ,300,000 2 ,181,700 109,443 2,291,143 8,857 - -
700203 Textbooks 5 00,000 3 00,000 - 300,000 200,000 - -
700215 CLS-KIHS Roof Repairs 9 7,278 9 7,278 - 97,278 - - -
700221 CLS-Warehouse Lot Paving 9 9,808 - 9 9,807 99,807 1 - -
700223 BOE Parking Lot Expansion 2 5,000 - - - 25,000 - -
700229/700233 CLS-Relocatable Classrooms 3 03,848 1 60,821 1 43,027 303,848 - - -
700231 Stevensville Middle 9 ,495,580 5 89,756 2 ,127,030 2,716,786 6,778,794 - -
700235 BOE Security Upgrades 2 20,000 - 4 8,558 48,558 171,442 - -
700237 Technology Upgrades 2 00,000 - 180,700 180,700 19,300 - -
Subtotal Board of Education 4 7,321,965 23,261,825 2 ,879,907 26,141,732 21,180,233 - -
Total Education 5 4,363,330 23,261,825 9 ,921,272 33,183,097 21,180,233 - -
CONSERVATION
400293 4-H Park Improvements 7 67,555 587,001 1 34,646 721,647 45,908 - 119,981
400553 CLS-Ag Preservation - Emerson Property 4 16,861 - - - 416,861 - -
400555 Ag Preservation - Frizz King Property 5 72,000 5 72,000 - 572,000 - - -
400571 Ag Preservation - Brown's Branch 9 68,166 9 68,166 - 968,166 - - -
400631 CREP Easements 1 ,532,705 1 ,511,297 - 1,511,297 21,408 - -
400643 CLS-4-H Parking Phase II 1 00,000 1 00,000 - 100,000 - - -
400687 Ag Preservation - Milliken Farm 3 36,832 336,832 - 336,832 - - -
400697 CLS-DNR Habitat & Water Quality Enhancement 7 7,295 - 7 5,682 75,682 1,613 - -
Total Conservation 4 ,771,414 4 ,075,296 2 10,328 4,285,624 485,790 - 119,981
CONTINUED
-129-

QUEEN ANNE'S COUNTY MARYLAND
CAPITAL PROJECTS FUNDS
SCHEDULE OF APPROPRIATIONS AND EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2014
(CONTINUED)
EXPENDITURES INCLUDED IN CAPITALIZED
TOTAL PRIOR CURRENT UNEXPENDED CONSTRUCTION CURRENT
PROJ # GENERAL CAPITAL PROJECTS: APPROPRIATION YEARS YEAR TOTAL APPROPRIATIONS IN PROGRESS YEAR
ECONOMIC/COMMUNITY DEVELOPMENT
400583 Matapeake Business Park 1 ,640,000 1,097,504 4 60,150 1,557,654 82,346 - 460,150
400709 Homeless Shelter Addition 7 57,284 2 7,444 6 8,127 95,571 661,713 - -
Total Economic/Community Development 2 ,397,284 1,124,948 5 28,277 1,653,225 744,059 - 460,150
DEBT SERVICE
400613 CLS-2011 Bond Issuance Costs 2 73,472 2 73,378 - 273,378 94 - -
400655 2012 Refunding Bonds 8 ,724,048 8 ,719,850 2 94 8,720,144 3,904 - -
400739 2014 Bond Issuance 2 44,183 - 1 96,576 196,576 47,607 - -
Total Debt Service 9 ,241,703 8 ,993,228 196,870 9,190,098 51,605 - -
TRANSFERS TO OTHER FUNDS
400045 Land Preservation Transfers 4 05,000 4 05,000 - 405,000 - - -
400127 Public Landings Allocation 2 00,000 200,000 - 200,000 - - -
400201 Land Sale Proceeds 8 75,000 1 25,000 7 50,000 875,000 - - -
400207 Housing & Comm Svc Transfer - to Housing Services 5 50,000 4 50,000 - 450,000 100,000 - -
400213 Loan Fund Transfers 4 60,000 4 60,000 - 460,000 - - -
400217 Transfer to VFD's 1 62,410 1 62,410 - 162,410 - - -
400551 Transfer to/from General Fund 8 ,310,000 8 ,310,000 - 8,310,000 - - -
400469 Sanitary District Transfer/Allocation 2 33,000 2 33,000 - 233,000 - - -
400741 Transfer to Enterprise Funds 8 00,000 - 3 01,612 301,612 498,388 - -
Total Transfers 1 1,995,410 10,345,410 1 ,051,612 11,397,022 598,388 - -
Total General Capital Projects $ 1 22,305,492 $ 62,988,179 $ 19,924,456 $ 82,912,635 $ 39,392,857 $ 4,269,471 $ 6,911,096
PROJ # ROADS BOARD CAPITAL PROJECTS:
PUBLIC WORKS
820005 Asphalt Overlays - Upgrade $ 3 ,316,023 $ 1 ,724,344 $ 292,308 $ 2,016,652 $ 1,299,371 $ - $ -
820221 Taylor Mill Road Bridge 1 97,500 4 50 - 450 197,050 450 -
820291 CLS-Carmichael Road Improvements 2 03,669 1 54,243 - 154,243 49,426 - -
820295 Fogwell Road Improvements 5 3,215 - - - 53,215 - -
820297 Rt 18-552 Improvements 1 ,074,248 2 36,244 - 236,244 838,004 236,244 -
820303 Roads - Capital Equipment 1 ,035,000 3 28,459 4 53,611 782,070 252,930 - 446,113
820305 Piney Creek Road - - 3 9,970 39,970 (39,970) - -
820307 CLS-Hollingsworth Road 7 0,000 - 4 4,586 44,586 25,414 - 44,586
820309 CLS-Perry's Corner/Bennett Point 1 ,203,900 - 1 ,203,900 1,203,900 - - 1,203,900
820311 CLS-Eagle Manor Road 9 0,000 - 5 3,392 53,392 36,608 - 53,392
Total Public Works - Roads 7 ,243,555 2 ,443,740 2 ,087,767 4,531,507 2,712,048 236,694 1,747,991
TRANSFERS TO OTHER FUNDS
820209 County Wide Mapping II 8 0,000 8 0,000 - 80,000 - - -
Total Transfers to Other Funds 8 0,000 8 0,000 - 80,000 - - -
Total Roads Board Capital Projects $ 7 ,323,555 $ 2 ,523,740 $ 2 ,087,767 $ 4,611,507 $ 2,712,048 $ 236,694 $ 1,747,991
Total General and Roads Capital Projects $ 1 29,629,047 $ 65,511,919 $ 22,012,223 $ 87,524,142 $ 42,104,905 $ 4,506,165 $ 8,659,087
Force in Kind Capital Projects reported in
non-capital projects Funds
400306 White March Park FIC $ 4 12,895 $ 412,129 $ 7 66 $ 412,895 $ - $ - $ -
400392 Cross County Conn II FIC 2 9,557 29,557 - 29,557 - 27,634 -
400394 Davidson Property FIC 4 3,809 43,809 - 43,809 - 43,470 -
400694 Coastsmart Initiative 1 6,813 - 1 6,813 16,813 - - -
400702 Rt 18 Trails Phase III 3 ,043 - 3 ,043 3,043 - - -
400704 Old Love Point Park 3 ,091 - 3 ,091 3,091 - - 3,091
400710 Homeless Shelter Addition 5 71 - 5 71 571 - - -
400732 Coastal Bays - Kennard 1 ,167 - 1 ,167 1,167 - - -
$ 5 10,946 $ 4 85,495 $ 2 5,451 $ 510,946 $ - $ 71,104 $ 3,091
Total Construction in Progress and Capitalized Current Year $ 4,577,269 $ 8,662,178
(1) The total appropriation given is for both the Board of Eductation & County.
-130-

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.
-131-

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.
-132-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2014
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
ASSETS COURSE AND MARINAS ENTERPRISE
Current Assets
Equity in Pooled Cash $ - $ 744,763 $ 744,763
Accounts Receivable (Net) - 10,973 10,973
Due from Other Governments - 21,682 21,682
Bond Interest Reimbursement Receivable - Build America Bond - 3,325 3,325
Inventories 6,298 - 6,298
Total Current Assets 6,298 780,743 787,041
Capital Assets
Land, Improved and Unimproved 1,904,522 769,110 2,673,632
Buildings and Improvements to Buildings 313,443 - 313,443
Improvements Other Than Buildings 122,268 5,343,459 5,465,727
Automotive Equipment - 40,881 40,881
Equipment 368,222 56,814 425,036
Furniture and Fixtures - 4,979 4,979
Capital Assets before Depreciation 2,708,455 6,215,243 8,923,698
Less Accumulated Depreciation (529,132) (688,459) ( 1,217,591)
Total Capital Assets, Net of Accumulated
Depreciation 2,179,323 5,526,784 7,706,107
Total Noncurrent Assets 2,179,323 5,526,784 7,706,107
Total Assets 2,185,621 6,307,527 8,493,148
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 35,330 - 35,330
Total Deferred Outflows of Resources 35,330 - 35,330
LIABILITIES
Current Liabilities
Accounts Payable 14,294 19,323 33,617
Accrued Interest Payable 3,633 11,912 15,545
Due to Other Funds 339,036 - 339,036
Unearned Revenue 1,586 - 1,586
Current Portion of Compensated Absences 5,029 13,553 18,582
Current Portion of Bonds/Notes Payable 88,041 45,353 133,394
Total Current Liabilities 451,619 90,141 541,760
Noncurrent Liabilities
Compensated Absences 3,425 9,229 12,654
Other Post-Employment Benefit Obligation - 206,827 206,827
Bonds/Notes Payable 456,280 932,591 1,388,871
Total Noncurrent Liabilities 459,705 1,148,647 1,608,352
Total Liabilities 911,324 1,238,788 2,150,112
NET POSITION
Net Investment in Capital Assets 1,670,332 4,548,840 6,219,172
Amounts Restricted for:
Donations 282 - 282
Unrestricted Amounts (360,987) 519,899 158,912
Total Net Position $ 1,309,627 $ 5,068,739 $ 6,378,366
-133-

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, 2014
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
COURSE AND MARINAS ENTERPRISE
OPERATING REVENUES
Charges for Services $ 297,293 $ 423,478 $ 7 20,771
Intergovernmental - 23,557 23,557
Bond Interest Reimbursement - Build America Bond - 12,882 12,882
Material Sales 41,136 - 41,136
Miscellaneous Revenues 4,548 24,418 28,966
Total Operating Revenues 3 42,977 484,335 8 27,312
OPERATING EXPENSES
Cost of Sales and Services
Recreation 4 44,522 329,556 774,078
Other Post-Employment Benefit Contributions - 47,651 47,651
Depreciation 3 1,803 115,766 147,569
Total Operating Expenses 4 76,325 492,973 969,298
Operating (Loss) (133,348) (8,638) (141,986)
NON-OPERATING (EXPENSES)
Interest Expense (33,850) (51,972) (85,822)
Loss on Disposal of Capital Assets (5,150) - ( 5,150)
Total Non-Operating (Expenses) (39,000) (51,972) (90,972)
(Loss) Before Contributions and Transfers (172,348) (60,610) (232,958)
Transfers In 1 72,348 - 1 72,348
Change in Net Position - (60,610) (60,610)
Total Net Position - Beginning of Year 1,309,627 5,129,349 6 ,438,976
Total Net Position - End of Year $ 1,309,627 $ 5,068,739 $ 6,378,366
-134-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
COURSE AND MARINAS ENTERPRISE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 296,427 $ 427,065 $ 723,492
Receipts from other operating revenues 45,684 52,613 98,297
Receipts from Build America Bond interest reimbursement - 13,226 13,226
Payments to suppliers (328,450) ( 117,200) (445,650)
Payments to employees and on behalf of employees (110,486) ( 200,211) (310,697)
Net Cash Provided (Used) by Operating Activities (96,825) 175,493 78,668
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds 172,348 - 172,348
Loan proceeds from interfund loans 339,036 - 339,036
Principal paid on interfund loans (306,731) - (306,731)
Net Cash Provided by Noncapital Financing Activities 204,653 - 204,653
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from the disposition of capital assets 1,000 - 1,000
Principal paid on capital debt (80,000) ( 43,303) (123,303)
Interest paid on capital debt (28,828) ( 47,629) (76,457)
Net Cash (Used) by Capital and Related Financing Activities (107,828) ( 90,932) (198,760)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income - - -
Net Cash Provided (Used) by Investing Activities - - -
Net increase in cash and cash equivalents - 84,561 84,561
Balances - Beginning of year - 660,202 660,202
Balances - End of year $ - $ 744,763 $ 744,763
Reconciliation of operating (loss) to net cash
provided (used) by operating activities
Operating (loss) $ (133,348) $ ( 8,638) $ (141,986)
Adjustments to reconcile operating (loss)
to net cash provided (used) by operating activities:
Depreciation 31,803 115,766 147,569
Changes in assets and liabilities:
Accounts receivable, net - 3,587 3,587
Operating grants receivable - 4,638 4,638
Build America Bonds Interest receivable - 344 344
Inventories and Prepaid Expenses 1,691 6,738 8,429
Vendor accounts payable 4,808 1,558 6,366
Compensated absences (913) 3,849 2,936
Other Post-Employment Benefit Obligation - 47,651 47,651
Deferred revenue collected in advance (866) - (866)
Net Cash Provided (Used) by Operating Activities $ (96,825) $ 175,493 $ 78,668
Noncash investing, capital and financing activities:
Donation of capital assets (infrastructure) by developers $ - $ - $ -
-135-

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.
-136-

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.
Mid-shore Regional Recycling Program (MRRP) – This fund accounts for activities of the regional
recycling effort that is supported by four counties, including Queen Anne’s County.
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.
-137-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF FIDUCIARY NET POSITION
OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
JUNE 30, 2014
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 $ 1 ,420,466 $ 5 05,036 $ 3 0,302 $ 1 56,561 $ 2,112,365
Total Assets 1 ,420,466 505,036 3 0,302 1 56,561 2 ,112,365
LIABILITIES
Due to Other Governments - - - 1 56,561 1 56,561
Total Liabilities - - - 1 56,561 1 56,561
NET POSITION HELD IN TRUST $ 1 ,420,466 $ 5 05,036 $ 3 0,302 $ - $ 1,955,804
-138-

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, 2014
QUEEN ANNE'S TOTAL
COUNTY QUEEN ANNE'S OPEB
QUEEN ANNE'S BOARD OF COUNTY TRUST
COUNTY EDUCATION LIBRARY FUND
ADDITIONS
Contributions
Employers $ 1,692,951 $ 1 ,488,965 $ 2 4,000 $ 3,205,916
Members 278,549 694,026 - 972,575
Total Contributions 1,971,500 2 ,182,991 2 4,000 4,178,491
Investment Income 1 ,492 744 44 2 ,280
Total Additions 1,972,992 2 ,183,735 2 4,044 4,180,771
DEDUCTIONS
Claims Paid 1,529,316 2 ,182,991 2 4,000 3,736,307
Change in Assets 4 43,676 744 44 444,464
NET POSITION HELD IN TRUST
Net Position - Beginning of Year 976,790 504,292 3 0,258 1,511,340
Net Position - End of Year $ 1,420,466 $ 5 05,036 $ 30,302 $ 1,955,804
-139-

Queen Anne’s County is dedicated to reducing emissions through embracing new
energy technologies like the 120 panel solar array installed in 2014.

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF AGENCY FUNDS ASSETS AND LIABILITIES
AGENCY FUNDS
JUNE 30, 2014
STATE MOTOR
TAX & TOWN VEHICLE MIDSHORE ESCHEAT - TOTAL
DITCH ZONING TAX ADMIN REGIONAL ABANDONED AGENCY
FUND DEPOSITS COLLECTIONS DEPOSITS RECYCLING PROPERTY FUNDS
ASSETS
Cash and Cash Equivalents $ 1 25,905 $ 324,116 $ 172,642 $ 3,728 $ - $ 6 ,602 $ 632,993
Total Assets $ 1 25,905 $ 324,116 $ 172,642 $ 3,728 $ - $ 6 ,602 $ 632,993
LIABILITIES
Due to Other Governments $ - $ - $ 172,642 $ 3,728 $ - $ 6 ,602 $ 182,972
Deposits and Escrows 125,905 324,116 - - - - 4 50,021
Total Liabilities $ 1 25,905 $ 324,116 $ 172,642 $ 3,728 $ - $ 6 ,602 $ 632,993
-141-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN AGENCY FUNDS ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
Cash and Miscellaneous Total
Cash Equivalents Receivables Assets
TAX DITCH FUND
Balance 7-1-13 $ 109,111 $ - $ 109,111
Additions 23,132 - 23,132
Deductions ( 6,338) - (6,338)
Balance 6-30-14 $ 125,905 $ - $ 125,905
ZONING DEPOSITS
Balance 7-1-13 $ 323,063 $ - $ 323,063
Additions 53,086 - 53,086
Deductions ( 52,033) - (52,033)
Balance 6-30-14 $ 324,116 $ - $ 324,116
STATE AND TOWN TAX COLLECTIONS
Balance 7-1-13 $ 156,669 $ - $ 156,669
Additions 12,291,379 - 12,291,379
Deductions (12,275,406) - (12,275,406)
Balance 6-30-14 $ 172,642 $ - $ 172,642
MOTOR VEHICLE ADMIN DEPOSITS
Balance 7-1-13 $ 6,862 $ - $ 6,862
Additions 344,163 - 344,163
Deductions (347,297) - (347,297)
Balance 6-30-14 $ 3,728 $ - $ 3,728
MIDSHORE REGIONAL RECYCLING
Balance 7-1-13 $ - $ 33,758 $ 33,758
Additions 33,758 - 33,758
Deductions ( 33,758) ( 33,758) (67,516)
Balance 6-30-14 $ - $ - $ -
ESCHEAT - ABANDONED PROPERTY
Balance 7-1-13 $ 12,977 $ - $ 12,977
Additions 6,636 - 6,636
Deductions ( 13,011) - (13,011)
Balance 6-30-14 $ 6,602 $ - $ 6,602
TOTAL AGENCY FUNDS
Balance 7-1-13 $ 608,682 $ 33,758 $ 642,440
Additions 12,752,154 - 12,752,154
Deductions (12,727,843) ( 33,758) (12,761,601)
Balance 6-30-14 $ 632,993 $ - $ 632,993
-142-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN AGENCY FUNDS ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
(CONTINUED)
Due to Accrued Liabilities
Other and Total
Governments Deposits and Escrows Liabilities
$ - $ 109,111 $ 109,111
- 23,132 23,132
- (6,338) (6,338)
$ - $ 125,905 $ 125,905
$ - $ 323,063 $ 323,063
- 53,086 53,086
- (52,033) (52,033)
$ - $ 324,116 $ 324,116
$ 156,669 $ - $ 156,669
12,291,379 - 12,291,379
(12,275,406) - ( 12,275,406)
$ 172,642 $ - $ 172,642
$ 6,862 $ - $ 6,862
343,526 - 343,526
(346,660) - (346,660)
$ 3,728 $ - $ 3,728
$ 33,758 $ - $ 33,758
- - -
( 33,758) - (33,758)
$ - $ - $ -
$ 12,977 $ - $ 12,977
6,636 - 6 ,636
( 13,011) - (13,011)
$ 6,602 $ - $ 6,602
$ 210,266 $ 432,174 $ 642,440
12,641,541 76,218 12,717,759
(12,668,835) (58,371) ( 12,727,206)
$ 182,972 $ 450,021 $ 632,993
-143-

Queen Anne’s County is located at the east end of the beautiful Chesapeake Bay Bridge.

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.
-145-

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
COMBINING BALANCE SHEETS
BY GRANTOR
JUNE 30, 2014 (with Summarized Totals as of June 30, 2013)
Fed/State Federal
GOCCP Family State
Admin GOC Support Ctr OTHER
ASSETS
Cash and cash equivalents $ 76,366 $ 553,428 $ 4,131 $ 33,908
Accounts receivable - 2,438 - -
Due from State governmental agencies - 130,240 - -
Due from Federal governmental agencies - - - -
Total Assets $ 76,366 $ 686,106 $ 4,131 $ 33,908
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued expenditures $ 6,632 $ 266,904 $ - $ -
Due to State governmental agencies 2,175 270,941 4 ,131 33,908
Unearned revenue - 145,656 - -
Total Liabilities 8,807 683,501 4 ,131 33,908
FUND BALANCES
Assigned 67,559 2,605 - -
Total Fund Balances 67,559 2,605 - -
Total Liabilities and Fund Balances $ 76,366 $ 686,106 $ 4,131 $ 33,908
-146-

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
COMBINING BALANCE SHEETS
BY GRANTOR
JUNE 30, 2014 (with Summarized Totals as of June 30, 2013)
(CONTINUED)
Total Returned 2013
Community Reinvestment 2014 Summarized
Partnerships Fund Total Total
$ 667,833 $ 55,770 $ 723,603 $ 374,767
2,438 - 2,438 -
1 30,240 - 130,240 471,801
- - - 28,146
$ 800,511 $ 55,770 $ 856,281 $ 874,714
$ 273,536 $ - $ 273,536 $ 244,620
3 11,155 - 311,155 331,677
1 45,656 - 145,656 145,656
7 30,347 - 730,347 721,953
7 0,164 55,770 125,934 152,761
7 0,164 55,770 125,934 152,761
$ 800,511 $ 55,770 $ 856,281 $ 874,714
-147-

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, 2014 (with Summarized Totals for the Year Ended June 30, 2013)
Healthy MD
CASA Resource Chesapeake Fam/Home Family After School
Administrative Start Promotion Helps Visiting Navigators Opportunity
REVENUES
CPA
Intergovernmental
GOC $ 65,000 $ 56,816 $ 3,825 $ 145,747 $ 57,616 $ 168,752 $ 52,244
Miscellaneous - - - - - - -
Subtotal CPA 65,000 56,816 3 ,825 145,747 57,616 168,752 52,244
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - 3,765 - - - - -
GOC - non-CPA - - - - - - -
State GOCCP - non-CPA - - - - - - -
Other State Grant Funding - - - - 296,178 - -
Investment Income - - - - - - -
Miscellaneous - - - - - - -
Subtotal Non-CPA - 3,765 - - 296,178 - -
Total Revenues 65,000 60,581 3 ,825 145,747 353,794 168,752 52,244
EXPENDITURES
CPA
Program Contracted Services - - 3 ,825 145,747 - 168,752 52,244
Other Expenditures
Salaries 59,995 - - - - - -
Fringe Benefit Costs 5,005 - - - - - -
Other Charges - 56,816 - - 57,616 - -
Subtotal CPA Expenditures 65,000 56,816 3 ,825 145,747 57,616 168,752 52,244
Non-CPA
Program Contracted Services - 3,765 - - 296,178 - -
Other Expenditures
Salaries 77,359 - - - - - -
Fringe Benefit Costs 57,700 - - - - - -
Equipment Rental 4,400 - - - - - -
Postage 293 - - - - - -
Office Supplies 870 - - - - - -
Equipment Operation 406 - - - - - -
Business Travel 534 - - - - - -
Meetings & Conferences - - - - - - -
Training - - - - - - -
Board's Expenditures 3,793 - - - - - -
Marketing/Promotions - - - - - - -
Communications 1,451 - - - - - -
Other Charges - - - - - - -
Subtotal Non-CPA Expenditures 146,806 3,765 - - 296,178 - -
Total Expenditures 211,806 60,581 3 ,825 145,747 353,794 168,752 52,244
Excess of Revenues (Under) Expenditures (146,806) - - - - - -
OTHER FINANCING SOURCES
Transfers In for:
Program Contracted Services 146,806 - - - - - -
Other Financing Sources 146,806 - - - - - -
Net Increase in Fund Balances $ - $ - $ - $ - $ - $ - $ -
Fund Balances, July 1
Fund Balances, June 30
-148-

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, 2014 (with Summarized Totals for the Year Ended June 30, 2013)
(CONTINUED)
Federal/State GOCCP/GOC State Federal
GOCCP/GOC State GOC GOCCP GOCCP
Character Care Operating Fund All Programs CPA Non-CPA Non-CPA Youth
Counts Program Total Subtotal Subtotal Subtotal Subtotal Strategies
$ 2 8,360 $ - $ 513,360 $ 578,360 $ 578,360 $ - $ - $ -
- - - - - - - -
2 8,360 - 5 13,360 578,360 578,360 - - -
- - 3,765 3,765 - - - 3,765
- - - - - - - -
- 8 ,315 8,315 8,315 - - 8,315 -
- - 2 96,178 296,178 - - - -
- - - - - - - -
2,914 17,165 20,079 20,079 - - - -
2,914 25,480 3 28,337 328,337 - - 8,315 3,765
3 1,274 25,480 8 41,697 906,697 578,360 - 8,315 3,765
- - 3 70,568 370,568 370,568 - - -
2 8,360 - 28,360 88,355 88,355 - - -
- - - 5,005 5,005 - - -
- - 1 14,432 114,432 114,432 - - -
2 8,360 - 5 13,360 578,360 578,360 - - -
- 2 5,480 3 25,423 325,423 - - 8,315 3,765
3,089 - 3,089 80,448 - - - -
5,429 - 5,429 63,129 - - - -
- - - 4,400 - - - -
- - - 293 - - - -
- - - 870 - - - -
- - - 406 - - - -
- - - 534 - - - -
- - - - - - - -
- - - - - - - -
- - - 3,793 - - - -
624 - 624 624 - - - -
- - - 1,451 - - - -
- - - - - - - -
9,142 2 5,480 3 34,565 481,371 - - 8,315 3,765
3 7,502 2 5,480 8 47,925 1,059,731 578,360 - 8,315 3,765
(6,228) - (6,228) (153,034) - - - -
6,228 - 6,228 153,034 - - - -
6,228 - 6,228 153,034 - - - -
$ - $ - $ - - - - - -
70,164 607,286 (6,429) 3,491 1
$ 70,164 $ 607,286 $ (6,429) $ 3,491 $ 1
CONTINUED
-149-

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, 2014 (with Summarized Totals for the Year Ended June 30, 2013)
(CONTINUED)
Total
Other Community Returned 2013
Non-CPA Partnerships Reinvestment 2014 Summarized
State Grants Other Operating Funds Fund Total Total
REVENUES
CPA
Intergovernmental
GOC $ - $ - $ 578,360 $ - $ 578,360 $ 5 80,356
Miscellaneous - - - - - 3 21,845
Subtotal CPA - - 578,360 - 578,360 9 02,201
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - - 3,765 - 3,765 1 11,563
GOC - non-CPA - - - - - 3 00,000
State GOCCP - non-CPA - - 8,315 - 8,315 7 ,592
Other State Grant Funding 296,178 - 296,178 - 296,178 2 96,372
Investment Income - - - 42 42 3 27
Miscellaneous - 20,079 20,079 - 20,079 1 4,927
Subtotal Non-CPA 296,178 20,079 328,337 42 328,379 7 30,781
Total Revenues 296,178 20,079 906,697 42 906,739 1 ,632,982
EXPENDITURES
CPA
Program Contracted Services - - 370,568 - 370,568 3 72,591
Other Expenditures
Salaries - - 88,355 - 88,355 8 5,355
Fringe Benefit Costs - - 5,005 - 5,005 8 ,005
Other Charges - - 114,432 - 114,432 1 14,405
Subtotal CPA Expenditures - - 578,360 - 578,360 5 80,356
Non-CPA
Program Contracted Services 296,178 17,165 325,423 - 325,423 4 05,423
Other Expenditures
Salaries - 80,448 80,448 - 80,448 7 8,505
Fringe Benefit Costs - 63,129 63,129 - 63,129 5 6,465
Equipment Rental - 4,400 4,400 - 4,400 4 ,958
Postage - 293 293 - 293 4 07
Office Supplies - 870 870 - 870 8 89
Equipment Operation - 406 406 - 406 1 ,216
Business Travel - 534 534 - 534 8 04
Meetings & Conferences - - - - - 1 0,626
Training - - - - - 9 ,800
Board's Expenditures - 3,793 3,793 - 3,793 6 ,071
Marketing/Promotions - 624 624 - 624 2 ,648
Communications - 1,451 1,451 - 1,451 1 ,310
Other Charges - - - 26,869 26,869 5 45,033
Subtotal Non-CPA Expenditures 296,178 173,113 481,371 26,869 508,240 1 ,124,155
Total Expenditures 296,178 173,113 1,059,731 26,869 1,086,600 1 ,704,511
Excess of Revenues (Under) Expenditures - (153,034) (153,034) (26,827) (179,861) (71,529)
OTHER FINANCING SOURCES
Transfers In for:
Program Contracted Services - 153,034 153,034 - 153,034 1 48,668
Other Financing Sources - 153,034 153,034 - 153,034 1 48,668
Net Increase in Fund Balances - - - (26,827) (26,827) 7 7,139
Fund Balances, July 1 - (534,185) 70,164 82,597 152,761 7 5,622
Fund Balances, June 30 $ - $ (534,185) $ 70,164 $ 55,770 $ 125,934 $ 1 52,761
-150-

The Queen Anne’s Emergency Center is open 24 hours a day, every day,
to treat people for acute illnesses, injuries and trauma as well as minor injuries.

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, 2014
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 $ 5 86,886 $ 586,886 $ 578,360 $ (8,526) $ - $ - $ - $ -
State GOCCP Non-CPA - 8,315 8,315 - - - - -
Federal GOCCP Youth Strategies - 3,765 3,765 - - - - -
Other 2 96,372 296,372 296,178 (194) - 50,000 - ( 50,000)
Investment Income - - - - - - 42 42
Miscellaneous - 17,165 20,079 2,914 - - - -
Total Revenues 8 83,258 912,503 906,697 (5,806) - 50,000 42 ( 49,958)
EXPENDITURES
Program Contracted Services 7 32,282 761,527 695,991 65,536 - - - -
Other Expenditures
Salaries 1 61,278 161,278 168,803 (7,525) - - - -
Fringe Benefit Costs 7 1,197 71,197 68,134 3,063 - - - -
Auditing 2 ,988 2,988 - 2,988 - - - -
Equipment Rental 5 ,920 5,920 4,400 1,520 - - - -
Postage 3 ,614 3,614 293 3,321 - - - -
Office Supplies 2 ,046 2,046 870 1,176 - - - -
Equipment Operation 5 00 500 406 94 - - - -
Business Travel 5 00 500 534 (34) - - - -
Board's Expenditures 5 ,060 5,060 3,793 1,267 - - - -
Marketing/Promotions - - 624 (624) - - - -
Communications 1 ,523 1,523 1,451 72 - - - -
Other Charges 5 7,616 57,616 114,432 (56,816) - 50,000 26,869 23,131
Total Expenditures 1 ,044,524 1,073,769 1,059,731 14,038 - 50,000 26,869 23,131
-
Excess of Revenues Over (Under)
Expenditures (161,266) ( 161,266) ( 153,034) 8,232 - - (26,827) ( 26,827)
OTHER FINANCING SOURCES
Transfers In for:
Program Contracted Services 1 61,266 161,266 153,034 (8,232) - - - -
Other Financing Sources 1 61,266 161,266 153,034 (8,232) - - - -
Net Decrease in Fund Balances $ - $ - - $ - $ - $ - (26,827) $ ( 26,827)
Fund Balances, July 1 70,164 82,597
Fund Balances, June 30 $ 70,164 $ 55,770
-
-152-

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, 2014
(CONTINUED)
TOTAL
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ 586,886 $ 586,886 $ 578,360 $ (8,526)
- 8,315 8,315 -
- 3,765 3,765 -
296,372 346,372 296,178 (50,194)
- - 42 42
- 17,165 20,079 2,914
883,258 962,503 906,739 (55,764)
732,282 761,527 695,991 65,536
161,278 161,278 168,803 (7,525)
71,197 71,197 68,134 3,063
2,988 2,988 - 2,988
5,920 5,920 4,400 1,520
3,614 3,614 293 3,321
2,046 2,046 870 1,176
500 500 406 94
500 500 534 (34)
5,060 5,060 3,793 1,267
- - 624 (624)
1,523 1,523 1,451 72
57,616 107,616 141,301 (33,685)
1,044,524 1,123,769 1,086,600 37,169
(161,266) (161,266) ( 179,861) (18,595)
161,266 161,266 153,034 (8,232)
161,266 161,266 153,034 (8,232)
$ - $ - ( 26,827) $ (26,827)
152,761
$ 125,934
-153-

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.
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QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
NET POSITION BY COMPONENT - GOVERNMENT-WIDE
(GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 1
2005 2006 2007 2008 2009
Governmental Activities:
Net Investment in Capital Assets (2) $ 85,784,267 $ 95,644,000 $ 103,657,227 $ 117,831,360 $ 123,217,989
Restricted 8 ,418,254 9 ,842,795 18,012,695 15,376,330 16,582,660
Unrestricted (deficit) (1) (6,161,281) 7 ,339,567 (3,740,905) (15,075,202) (26,672,299)
Total Governmental Activities Net Position (2) 88,041,240 112,826,362 117,929,017 118,132,488 113,128,350
Business-type Activities:
Net Investment in Capital Assets (2) 55,612,719 69,672,273 74,463,912 77,237,512 77,146,688
Restricted 7 ,742,890 11,733,254 19,133,485 18,276,271 19,886,675
Unrestricted - - - - -
Total Business-type Activities Net Position (2) 63,355,609 81,405,527 93,597,397 95,513,783 97,033,363
Primary Government:
Net Investment in Capital Assets (2) 141,396,986 165,316,273 178,121,139 195,068,872 200,364,677
Restricted 16,161,144 21,576,049 37,146,180 33,652,601 36,469,335
Unrestricted (deficit) (1) (6,161,281) 7 ,339,567 (3,740,905) (15,075,202) (26,672,299)
Total Primary Government Net Position (2) $ 151,396,849 $ 194,231,889 $ 211,526,414 $ 213,646,271 $ 210,161,713
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, pages 32-33.
(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 positive net position for its governmental activities and for government-wide purposes. Government-
wide unrestricted net position would have been:
Unrestricted (deficit) net position reported above $ (6,161,281) $ 7,339,567 $ (3,740,905) $ (15,075,202) $ (26,672,299)
Debt issued for capital on behalf of others 47,345,646 44,460,306 57,496,385 53,758,049 50,291,243
County net position absent the effect of this relationship $ 41,184,365 $ 51,799,873 $ 53,755,480 $ 38,682,847 $ 23,618,944
(2) In fiscal year 2013, the County implemented GASB Statement No. 63, which required the change from the Statement of Net Assets
to the Statement of Net Position.
(3) 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.
(4) FY2013 Net Position of governmental activities was restated in fiscal year 2014.
-156-

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)
2010 2011 2012 2013 2014
$ 121,702,025 $ 118,274,533 $ 118,564,684 $ 121,246,426 $ 127,369,959
22,290,307 22,399,514 5 ,982,041 15,691,080 17,616,132
(45,795,597) (61,193,944) (44,686,543) (49,687,718) (54,767,413)
98,196,735 79,480,103 79,860,182 (3) 87,249,788 (4) 90,218,678
79,032,373 78,069,061 76,763,695 78,693,078 79,783,160
18,180,809 16,821,905 3 ,513,948 3 ,176,328 3 ,110,033
- - 12,591,302 12,529,594 10,219,525
97,213,182 94,890,966 92,868,945 (3) 94,399,000 93,112,718
200,734,398 196,343,594 195,328,379 199,939,504 207,153,119
40,471,116 39,221,419 9 ,495,989 18,867,408 20,726,165
(45,795,597) (61,193,944) (32,095,241) (37,158,124) (44,547,888)
$ 195,409,917 $ 174,371,069 $ 172,729,127 (3) $ 181,648,788 (4) $ 183,331,396
$ (45,795,597) $ (61,193,944) $ (32,095,241) $ (37,158,124) $ (44,547,888)
57,677,186 72,437,047 68,278,842 63,283,726 67,651,486
$ 11,881,589 $ 11,243,103 $ 36,183,601 (3) $ 26,125,602 (4) $ 23,103,598
-157-

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
2005 2006 2007 2008 2009
Expenses
Governmental Activities:
General Government $ 8,774,831 $ 9,071,760 $ 9,854,468 $ 11,167,743 $ 13,317,683
Public Safety 14,255,183 17,534,652 19,149,388 20,721,185 23,570,049
Public Works 8,303,570 8,898,010 9,913,917 10,420,547 10,237,718
Health 1,284,216 1,377,717 1,450,866 1,441,143 1,590,004
Social Services 4,786,130 4,420,205 4,474,784 4,978,883 5,617,621
Education 40,377,624 42,303,087 56,118,585 58,034,317 53,296,238
Parks & Recreation (3) 2,385,014 2,562,890 3,158,455 3,330,087 5,060,018
Library 1,073,222 1,168,232 1,266,183 1,270,718 1,414,008
Conservation of Natural Resources 591,986 478,426 497,926 2,172,443 2,473,308
Economic/Community Development 1,546,516 1,575,099 3,258,876 3,527,908 2,197,116
Interest and Fiscal Charges 2,288,442 2,508,070 2,864,493 3,033,416 2,831,002
Total Governmental Activities Expenses 85,666,734 91,898,148 112,007,941 120,098,390 121,604,765
Business-type Activities:
Water and Sewer 6,974,968 7,127,140 7,802,798 9,621,784 10,689,782
Golf Course (4) 2,524,904 2,509,783 3,273,986 2,179,157 2,178,163
Public Landings and Marinas (5) - - 57,372 27,344 38,050
Airport 529,755 713,896 674,337 812,067 879,906
Total Business-type Activities Expenses 10,029,627 10,350,819 11,808,493 12,640,352 13,785,901
Total Primary Government Expenses 95,696,361 102,248,967 123,816,434 132,738,742 135,390,666
Program Revenues
Governmental Activities:
General Government
Charges for Services 1,124,756 1,139,531 1,127,737 1,047,371 1,055,945
Operating Grants and Contributions 312,136 454,948 377,412 295,898 403,018
Capital Grants and Contributions 22,747 60,000 5,000 757,975 5,567
Total Revenue 1,459,639 1,654,479 1,510,149 2,101,244 1,464,530
Public Safety
Charges for Services 968,857 1,595,738 1,642,258 3,167,090 1,394,463
Operating Grants and Contributions 1,443,474 1,743,073 1,255,307 1,254,611 1,266,869
Capital Grants and Contributions 271,867 456,993 272,497 1,171 273,176
Total Revenue 2,684,198 3,795,804 3,170,062 4,422,872 2,934,508
Public Works
Charges for Services 1,666,335 1,189,117 871,962 1,014,600 714,765
Operating Grants and Contributions 4,130,984 3,710,398 5,572,760 6,304,965 7,566,648
Capital Grants and Contributions 461,499 57,000 1,838,101 544,610 298,500
Total Revenue 6,258,818 4,956,515 8,282,823 7,864,175 8,579,913
Health
Operating Grants and Contributions - 150,966 - - -
Social Services
Charges for Services 162,958 58,467 73,497 64,041 68,386
Operating Grants and Contributions 3,035,511 2,550,840 2,589,967 2,911,796 2,928,291
Capital Grants and Contributions 24,388 - 172,732 613,804 348,124
Total Revenue 3,222,857 2,609,307 2,836,196 3,589,641 3,344,801
Education
Charges for Services 917,387 1,696,657 963,216 1,011,013 740,213
Operating Grants and Contributions - 18,000 - - 8,050
Capital Grants and Contributions - - - - 161,673
Total Revenue 917,387 1,714,657 963,216 1,011,013 909,936
Parks & Recreation
Charges for Services 21,724 68,051 158,447 302,195 240,954
Operating Grants and Contributions - 42,690 58,485 72,659 509
Capital Grants and Contributions 297,537 5,998,982 4,363,393 5,666,226 1,087,329
Total Revenue 319,261 6,109,723 4,580,325 6,041,080 1,328,792
Conservation of Natural Resources
Charges for Services 150,052 119,580 100,488 88,534 97,481
Operating Grants and Contributions 371,960 680,396 597,613 322,718 55,847
Capital Grants and Contributions 28,535 - - - 691,085
Total Revenue 550,547 799,976 698,101 411,252 844,413
Economic/Community Development
Charges for Services 23,728 11,086 4,083 5,249 4,786
Operating Grants and Contributions 247,404 121,497 120,254 163,245 641,305
Capital Grants and Contributions - - - - -
Total Revenue 271,132 132,583 124,337 168,494 646,091
Total Governmental Activities Program Revenues 15,683,839 21,924,010 22,165,209 25,609,771 20,052,984
-158-

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)
2010 2011 2012 2013 2014
$ 14,089,387 $ 15,968,633 $ 13,421,531 $ 13,639,728 $ 14,133,149
25,361,341 25,413,678 25,469,721 26,174,144 26,666,211
9,432,489 9,098,949 10,373,286 11,891,013 12,365,647
1,663,321 1,701,677 1,642,723 1,812,920 2,083,201
5,554,667 5,001,240 4,526,166 5,560,196 5,040,139
53,491,659 57,506,341 53,693,309 49,459,783 54,882,430
3,618,427 3,090,228 - - -
1,473,689 1,457,336 1,302,163 1,304,076 1,336,098
5,281,372 3,811,748 2,802,337 838,775 2,395,762
2,001,306 1,893,570 887,837 1,108,912 1,528,035
3,510,678 4,078,105 4,196,072 4,042,236 3,987,943
125,478,336 129,021,505 118,315,145 115,831,783 124,418,615
10,610,705 10,905,989 10,711,211 11,783,515 11,059,306
2,789,901 4,099,507 2,269,933 538,420 515,325
96,739 67,395 110,884 535,837 544,945
1,017,780 1,167,655 1,457,087 913,845 807,226
14,515,125 16,240,546 14,549,115 13,771,617 12,926,802
139,993,461 145,262,051 132,864,260 129,603,400 137,345,417
1,261,230 1,086,641 1,081,808 1,272,807 1,500,273
546,176 694,347 742,205 697,712 606,649
44,743 118,100 116,710 135,032 589,988
1,852,149 1,899,088 1,940,723 2,105,551 2,696,910
1,263,212 1,090,545 1,320,647 1,387,591 1,286,945
1,891,120 1,461,080 1,113,018 1,328,493 1,081,577
303,566 82,885 191,223 249,594 282,139
3,457,898 2,634,510 2,624,888 2,965,678 2,650,661
791,796 872,352 1,107,426 1,636,604 1,425,012
632,923 546,719 488,027 624,653 712,550
264,078 901,289 541,887 1,687,783 2,221,299
1,688,797 2,320,360 2,137,340 3,949,040 4,358,861
- - - - -
67,423 69,382 71,655 71,973 65,537
2,666,917 2,050,062 2,076,096 2,613,905 2,026,675
2,688,245 215,748 18,691 51,023 67,392
5,422,585 2,335,192 2,166,442 2,736,901 2,159,604
852,201 755,443 1,169,425 1,052,691 1,721,379
433,000 - - - -
- - - - -
1,285,201 755,443 1,169,425 1,052,691 1,721,379
177,568 187,901 - - -
123,336 1,868 - - -
631,504 199,698 - - -
932,408 389,467 - - -
101,019 75,354 98,593 63,105 73,279
93,002 1,006,138 36,872 400,193 103,892
4,191,024 1,923,471 998,757 - 75,820
4,385,045 3,004,963 1,134,222 463,298 252,991
- 4,236 159,492 234,100 508,000
- 239,893 245,143 176,216 255,100
- 110,561 81,867 575,440 (69,569)
- 354,690 486,502 985,756 693,531
19,024,083 13,693,713 11,659,542 14,258,915 14,533,937
CONTINUED
-159-

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)
2005 2006 2007 2008 2009
Business-type Activities:
Water and Sewer
Charges for Services $ 6,704,817 $ 8,057,402 $ 12,169,440 $ 8,014,366 $ 7,695,100
Operating Grants and Contributions 541,052 - - - -
Capital Grants and Contributions 994,303 12,576,490 5,015,603 2,584,371 682,935
Total Revenue 8,240,172 20,633,892 17,185,043 10,598,737 8,378,035
Golf Course (4)
Charges for Services 1,099,161 1,576,001 1,581,030 1,459,725 1,526,244
Operating Grants and Contributions 330,204 387,270 1,279,648 55,953 45,824
Capital Grants and Contributions 4,000 469,624 144,844 95,890 69,068
Total Revenue 1,433,365 2,432,895 3,005,522 1,611,568 1,641,136
Public Landings and Marinas (5)
Charges for Services - - 108,100 105,900 100,250
Operating Grants and Contributions - - 92,348 3,710 -
Capital Grants and Contributions - - - - -
Total Revenue - - 200,448 109,610 100,250
Airport
Charges for Services 182,092 23,661 32,683 46,960 34,907
Operating Grants and Contributions - 4,448 1,112 - -
Capital Grants and Contributions 69,595 6,368,327 667,166 382,945 289,112
Total Revenue 251,687 6,396,436 700,961 429,905 324,019
Total Business-type Activities Program Revenues 9,925,224 29,463,223 21,091,974 12,749,820 10,443,440
Total Primary Government Program Revenues 25,609,063 51,387,233 43,257,183 38,359,591 30,496,424
Net (Expense) Revenue (1)
Governmental activities ( 69,982,895) ( 69,974,138) ( 89,842,732) ( 94,488,619) ( 101,551,781)
Business-type activities (104,403) 19,112,404 9,283,481 109,468 ( 3,342,461)
Total Primary Government Net Expense $ ( 70,087,298) $ ( 50,861,734) $ ( 80,559,251) $ ( 94,379,151) $ (104,894,242)
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes (2) $ 80,932,258 $ 87,157,631 $ 90,910,849 $ 91,853,216 $ 95,530,316
Grants and Contributions Not Restricted to Specific Programs 88,750 - - - -
Investment income 682,682 1,738,114 3,162,830 2,128,509 642,472
Gain on Sale of Capital Assets - 2,983,087 13,605 - 1,540,404
Miscellaneous 1,063,336 997,032 1,928,398 721,946 2,182,525
Transfers In (Out) ( 3,055,362) 2,396,851 ( 1,070,297) (11,581) ( 3,348,074)
Extraordinary Loss - (477,707) - - -
Total Governmental Activities 79,711,664 94,795,008 94,945,385 94,692,090 96,547,643
Business-type Activities:
Investment income 634,413 771,883 956,687 875,509 595,279
Gain on Sale of Capital Assets - - 4,691 - -
Miscellaneous 772,083 562,482 876,714 919,828 918,688
Transfers In (Out) 3,055,362 (2,396,851) 1,070,297 11,581 3,348,074
Special items - (Loss) (953,385) - - - -
Total Business-type Activities 3,508,473 ( 1,062,486) 2,908,389 1,806,918 4,862,041
Total Primary Government 83,220,137 93,732,522 97,853,774 96,499,008 101,409,684
Change in Net Position (6)
Governmental activities 9,728,769 24,820,870 5,102,653 203,471 ( 5,004,138)
Business-type activities 3,404,070 18,049,918 12,191,870 1,916,386 1,519,580
Total Primary Government $ 13,132,839 $ 42,870,788 $ 17,294,523 $ 2,119,857 $ ( 3,484,558)
NOTES:
* Government-wide net position information is reported on the accrual basis of accounting.
* Source: Statement of Activities, pages 34-35.
(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.
(6) In fiscal year 2013, the County implemented GASB Statement No. 63, which required the change from the Statement of Net Assets
to the Statement of Net Position.
-160-

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)
2010 2011 2012 2013 2014
$ 8,224,428 $ 8,192,471 $ 7,977,667 $ 8,181,434 $ 8,341,848
98,492 - 55,728 161,600 90,000
208,115 837,426 347,573 2,048,768 665,268
8,531,035 9,029,897 8,380,968 10,391,802 9,097,116
1,633,203 1,568,227 1,501,550 313,364 297,293
41,838 39,572 52,915 - -
289,895 196,487 28,680 - -
1,964,936 1,804,286 1,583,145 313,364 297,293
62,600 84,987 102,290 440,270 423,478
29,017 16,241 14,183 42,914 36,439
545,123 588,326 78,314 18,692 -
636,740 689,554 194,787 501,876 459,917
50,585 37,955 58,589 48,072 49,061
33,922 3,715 47,412 2,621 2,420
1,519,810 448,600 693,162 2,472,782 7,457
1,604,317 490,270 799,163 2,523,475 58,938
12,737,028 12,014,007 10,958,063 13,730,517 9,913,264
31,761,111 25,707,720 22,617,605 27,989,432 24,447,201
( 106,454,253) ( 115,327,792) ( 106,655,603) ( 101,572,868) ( 109,884,678)
( 1,778,097) ( 4,226,539) ( 3,591,052) (41,100) ( 3,013,538)
$ (108,232,350) $ (119,554,331) $ (110,246,655) $ (101,613,968) $ (112,898,216)
$ 90,469,883 $ 96,093,533 $ 105,693,926 $ 107,978,036 $ 112,123,625
- - - - -
144,553 136,523 126,650 107,095 95,286
26,731 281,158 27,627 163,426 346,765
786,719 711,868 1,254,255 1,051,760 877,629
(559,331) (611,922) (605,996) (337,843) (589,737)
- - - - -
90,868,555 96,611,160 106,496,462 108,962,474 112,853,568
436,045 407,629 374,665 356,374 343,568
- - - - -
962,540 884,772 1,127,590 855,504 793,951
559,331 611,922 605,996 359,277 589,737
- - - - -
1,957,916 1,904,323 2,108,251 1,571,155 1,727,256
92,826,471 98,515,483 108,604,713 110,533,629 114,580,824
( 15,585,698) ( 18,716,632) (159,141) 7,389,606 2,968,890
179,819 ( 2,322,216) ( 1,482,801) 1,530,055 ( 1,286,282)
$ ( 15,405,879) $ ( 21,038,848) $ ( 1,641,942) $ 8,919,661 $ 1,682,608
-161-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
GENERAL TAX REVENUES - GOVERNMENTAL ACTIVITIES
LAST TEN FISCAL YEARS
Table 2-b
2005 2006 2007 2008 2009
Local Property Taxes $ 42,121,614 $ 44,688,709 $ 46,185,050 $ 50,021,587 $ 55,362,114
Local Income Tax 29,957,555 31,959,096 35,346,494 35,700,111 34,834,937
Other Local Taxes 8,853,089 10,509,826 9,379,305 6,131,518 5,333,265
Total Taxes - Governmental Activities $ 80,932,258 $ 87,157,631 $ 90,910,849 $ 91,853,216 $ 95,530,316
2010 2011 2012 2013 2014
Local Property Taxes $ 59,267,240 $ 60,070,368 $ 65,937,415 $ 65,591,225 $ 64,712,683
Local Income Tax 25,715,247 30,624,679 34,028,234 35,769,303 40,899,804
Other Local Taxes 5,487,396 5,398,486 5,728,277 6,617,508 6,511,138
Total Taxes - Governmental Activities $ 90,469,883 $ 96,093,533 $ 105,693,926 $ 107,978,036 $ 112,123,625
NOTES:
* Government-wide general tax revenue information is reported on the accrual basis of accounting.
* Source: Statement of Activities, pages 34-35.
-162-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 3
2005 2006 2007 2008 2009
General Fund:
Reserved $ 5 ,705,316 $ 6 ,169,255 $ 7,140,303 $ 8,948,231 $ 8,643,600
Unreserved 4 ,104,926 1 4,944,399 15,302,827 3,972,847 6,381,843
Total General Fund 9 ,810,242 2 1,113,654 22,443,130 12,921,078 15,025,443
All Other Governmental Funds:
Reserved 1 5,075,521 1 3,751,478 20,060,988 16,706,954 17,007,368
Unreserved, reported in:
Capital Projects Fund 1 1,706,521 1 3,579,649 17,618,012 14,409,216 1,723,066
Special Revenue Funds 3 ,156,479 2 ,810,027 3,019,522 2,185,304 2,751,120
Total All Other Governmental Funds 2 9,938,521 3 0,141,154 40,698,522 33,301,474 21,481,554
Total All Governmental Funds $ 3 9,748,763 $ 5 1,254,808 $ 63,141,652 $ 46,222,552 $ 36,506,997
2010 2011 2012 2013 2014
General Fund:
Reserved $ 7 ,734,692 $ - $ - $ - $ -
Unreserved 6 ,296,418 - - - -
Nonspendable (1) - 4 ,000 555,215 626,122 480,385
Restricted (1) - 3 33,798 340,670 8,111,614 8,375,368
Committed (1) - 6 57,068 695,944 - 1,157,360
Assigned (1) - 7 0,000 - 1,284,657 1,284,875
Unassigned (1) - 4 ,753,656 11,207,265 5,965,003 7,123,519
Total General Fund 1 4,031,110 5 ,818,522 12,799,094 15,987,396 18,421,507
All Other Governmental Funds:
Reserved 1 5,153,381 - - - -
Unreserved, reported in:
Capital Projects Funds 1 2,538,916 - - - -
Special Revenue Funds 7 ,842,939 - - - -
Nonspendable (1) - 4 ,401,483 5,136,024 5,406,512 5,470,608
Restricted (1) - 2 2,065,716 12,255,292 12,724,859 21,824,970
Committed (1) - 1 ,820,818 2,054,749 3,480,382 4,097,033
Assigned (1) - 1 4,745,215 18,654,017 24,665,235 25,939,319
Unassigned (1) - (172,381) (157,828) ( 135,515) ( 115,800)
Total All Other Governmental Funds 3 5,535,236 4 2,860,851 37,942,254 46,141,473 57,216,130
Total All Governmental Funds $ 4 9,566,346 $ 4 8,679,373 $ 50,741,348 $ 62,128,869 $ 75,637,637
NOTES:
* Fund balance information for governmental funds is reported on the modified accrual basis of accounting.
* Source: Balance Sheet, page 36.
(1) As of June 30, 2011, fund balance classifications changed due to the implementation of GASB 54.
-163-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
2005 2006 2007 2008 2009
Revenues
Taxes
Local Property Taxes $ 42,191,297 $ 44,657,603 $ 46,208,342 $ 50,007,054 $ 55,374,053
Local Income Taxes 28,237,534 3 1,633,987 3 4,980,663 3 4,767,725 3 5,988,334
Other Local Taxes 8,853,089 1 0,509,826 9 ,379,305 6 ,131,518 5 ,333,265
State Shared Taxes 4,528,046 4 ,233,139 5 ,125,419 5 ,306,763 7 ,591,829
Licenses and Permits 829,784 8 24,917 8 95,931 8 90,821 8 74,639
Intergovernmental 6,049,496 1 1,476,325 1 0,661,130 1 2,199,511 8 ,049,695
Bond Interest Reimbursement - Build America Bond - - - - -
Charges for Current Services 3,394,626 4 ,864,374 3 ,806,563 4 ,049,902 3 ,326,696
Fines and Forfeitures 48,654 7 7,008 239,194 1 ,759,370 1 15,658
Investment Income 907,275 1 ,738,139 3 ,162,830 2 ,128,509 6 42,472
Donations 1 04,093 9 8,610 7 4,694 2 47,002 7 6,867
Miscellaneous 1 ,567,883 1 ,346,669 1 ,853,706 7 19,067 2 ,182,525
Total Revenues 96,711,777 1 11,460,597 1 16,387,777 1 18,207,242 1 19,556,033
Expenditures
Current
General Government (1) 8,933,985 9 ,516,299 8 ,772,229 1 0,128,699 1 0,841,479
Public Safety 13,199,057 1 6,356,949 1 7,918,740 1 9,292,661 2 0,483,238
Public Works 9 ,055,472 9 ,168,186 9 ,167,362 9,182,618 8 ,678,715
Health 1 ,261,488 1 ,355,057 1 ,428,395 1 ,430,670 1 ,572,848
Social Services 4,367,736 4 ,294,781 4 ,260,927 4 ,747,491 5 ,029,493
Education 4 0,421,109 4 2,346,958 5 6,163,966 5 8,086,283 5 3,348,513
Parks and Recreation 2,481,296 9 ,096,593 2 ,809,748 3 ,083,038 3 ,145,367
Library 1 ,049,612 1 ,144,622 1 ,242,573 1 ,247,108 1 ,390,398
Conservation of Natural Resources 578,426 5 08,606 4 83,810 2 ,177,820 2 ,445,352
Economic/Community Development 1,552,689 1 ,558,978 3 ,188,316 3 ,513,153 1 ,968,587
Miscellaneous - - 9 15,542 7 31,771 7 06,792
Capital Outlay 1 ,280,650 1 ,049,361 1 4,291,416 1 3,676,569 8 ,594,972
Debt Service
Principal 5 ,928,559 3 ,677,307 3 ,795,769 4 ,888,405 5 ,089,347
Debt Issuance Costs - - 2 36,899 3 ,972 (423)
Interest and Fiscal Charges 2,555,411 2 ,569,650 2 ,257,928 3 ,147,529 2 ,778,490
Total Expenditures 92,665,490 1 02,643,347 1 26,933,620 1 35,337,787 1 26,073,168
Excess (Deficiency) of Revenues over (under) Expenditures 4,046,287 8 ,817,250 (10,545,843) (17,130,545) (6,517,135)
Other Financing Sources (Uses)
Issuance of Debt 30,026,336 - 2 3,219,790 5 10,617 1 22,780
Re-allocation of 2006 Bonds - - - (345,955) -
Bond Premiums 1 ,069,864 - 2 36,899 3 ,972 (423)
Payments to Bond Refunding Agent - - - - -
Bond Issuance Costs (159,647) - - - -
Proceeds of Capital Asset Disposals 154,787 1 ,176,860 8 8,535 4 5,494 6 4,089
Insurance Proceeds - - - 8 ,898 4 4,907
Capital Contributions - Developer 88,750 - - - -
Transfers In 1 0,661,440 8 ,578,135 1 3,131,736 1 7,014,307 5 ,449,499
Transfers Out (13,716,802) (6,181,284) (14,202,033) (17,025,888) (8,879,272)
Defeasance of debt (30,722,375) - - - -
Total Other Financing Sources (Uses) (2,597,647) 3 ,573,711 2 2,474,927 2 11,445 (3,198,420)
Special and Extraordinary Items
Special Item - - - - -
Extraordinary Gains (Losses) - (477,707) (42,242) - -
Total Special Items and Extraordinary Gains (Losses) - (477,707) (42,242) - -
Net Increase (Decrease) in Fund Balances $ 1,448,640 $ 11,913,254 $ 11,886,842 $ (16,919,100) $ (9,715,555)
Debt service as a percentage of non-capital expenditures (2, 3) 9.49% 6.73% 5.38% 6.61% 6.79%
NOTES:
* Governmental fund information is reported on the modified accrual basis of accounting.
* Source: Statement of Revenues, Expenditures and Changes in Fund Balances, page 38,
and the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities, pages 40-41.
(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.
-164-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
(CONTINUED)
2010 2011 2012 2013 2014
$ 59,242,742 $ 60,097,959 $ 65,918,832 $ 65,554,079 $ 64,701,622
29,647,125 2 9,527,496 3 5,969,879 3 9,438,906 4 0,326,921
5,487,396 5 ,398,486 5 ,728,277 6 ,617,508 6 ,511,137
508,138 2 30,401 3 06,235 5 10,726 7 49,366
863,782 9 19,663 8 77,365 1 ,004,774 1 ,080,891
12,061,066 8 ,777,729 5 ,867,211 7 ,588,691 5 ,588,984
193,567 4 38,022 4 32,212 4 06,337 3 83,777
3,396,080 3 ,143,846 3 ,908,998 4 ,594,240 5 ,357,919
258,937 7 8,345 2 22,683 1 19,857 1 41,615
144,553 1 36,523 1 26,650 1 07,095 9 5,286
140,731 1 09,342 4 6,332 3 6,332 3 9,055
786,719 7 08,455 1 ,254,255 1 ,051,760 8 77,629
112,730,836 1 09,566,267 1 20,658,929 1 27,030,305 1 25,854,202
10,608,976 1 0,397,457 9 ,171,830 9 ,282,310 1 0,649,489
21,344,575 2 1,127,321 2 0,985,077 2 1,275,229 2 2,266,458
7,671,352 7 ,277,767 7 ,733,226 9 ,615,805 9 ,967,363
1,637,101 1,670,222 1 ,604,462 1 ,811,402 2 ,030,740
4,767,647 4 ,098,650 3 ,533,022 4 ,051,741 3 ,474,886
53,545,597 5 7,566,865 5 3,755,497 4 8,418,107 5 9,752,944
3,055,335 2 ,521,175 - - -
1,424,078 1 ,433,725 1 ,277,993 1 ,278,228 1 ,310,250
5,263,577 3 ,872,916 2 ,794,262 8 90,480 2 ,363,254
1,847,195 1 ,715,524 7 58,089 8 98,129 1 ,306,516
1,373,090 4 ,699,452 3 ,704,702 4 ,862,189 3 ,202,417
7,868,741 4 ,838,581 2 ,755,949 3 ,370,909 8 ,669,375
4,948,144 6 ,964,558 7 ,095,307 7 ,069,406 7 ,210,561
145,884 1 29,671 1 62,021 (94) 1 96,870
3,114,505 3 ,629,426 4 ,116,939 3 ,675,628 3 ,501,230
128,615,797 1 31,943,310 1 19,448,376 1 16,499,469 1 35,902,353
( 15,884,961) (22,377,043) 1 ,210,553 1 0,530,836 (10,048,151)
29,299,154 2 1,897,570 8 ,010,000 5 64,068 2 2,405,542
- - - - -
157,800 1 39,136 7 13,235 (101) 1 ,118,097
- - (8,557,455) - -
- - - - -
30,861 5 82,601 4 7,396 3 08,856 4 58,759
15,826 9 9,028 1 1,631 2 0,070 6 1,942
- - - - 1 02,316
18,184,911 5 ,386,256 9 ,635,881 1 0,851,904 5 ,861,261
( 18,744,242) (6,614,521) (10,369,909) (11,228,409) (6,450,998)
- - - - -
28,944,310 2 1,490,070 (509,221) 5 16,388 2 3,556,919
- - 1 ,360,643 - -
- - - - -
- - 1 ,360,643 - -
$ 13,059,349 $ (886,973) $ 2,061,975 $ 11,047,224 $ 13,508,768
6.69% 8.34% 9.66% 9.54% 8.44%
-165-

The “church on the hill,” or St. Luke’s Episcopal Church, in Church Hill, is one of the oldest
intact brick churches in the state having been built in 1732 at a cost of 140,000 pounds of tobacco.

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
2005 $ 8 49,272,884 $ 3 ,690,010,496 $ 4 ,539,283,380 $ 0 .9260 $ 57,382,490 $ 4 ,596,665,870 $ 3 30,840,259 $ 4 ,927,506,129
2006 9 50,694,704 4 ,051,000,772 5 ,001,695,476 0 .8700 59,360,390 5 ,061,055,866 3 69,542,935 5 ,430,598,801
2007 1 ,104,093,458 4 ,526,502,291 5 ,630,595,749 0 .8000 63,168,480 5 ,693,764,229 4 19,303,486 6 ,113,067,715
2008 1 ,291,356,759 5 ,045,464,776 6 ,336,821,535 0 .7700 61,729,010 6 ,398,550,545 4 74,798,401 6 ,873,348,946
2009 1 ,503,024,419 5 ,518,534,961 7 ,021,559,380 0 .7700 61,513,370 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 62,858,590 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 59,364,960 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 60,635,440 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 63,194,130 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 64,411,900 7 ,540,259,768 6 96,880,673 8 ,237,140,441
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.
-167-

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)
2005 $ 0 .9260
2006 0 .8700
2007 0 .8000
2008 0 .7700
2009 0 .7700
2010 0 .7700
2011 0 .7671
2012 0 .8471
2013 0 .8471
2014 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.
-168-

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
2005 $ 0 .0600
2006 0 .0600
2007 0 .0600
2008 0 .0600
2009 0 .0600
2010 0 .0600
2011 0 .0600
2012 0 .0600
2013 0 .0600
2014 0 .0600
NOTES:
* Tax rates are per $100 of assessed value.
* The personal property tax rate for Queen Anne's County is zero.
-169-

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
2005 $ 0 .4800 $ 0 .1000 $ 0 .3400 $ 0 .2800 $ 0 .1800
2006 0 .4800 0 .1000 0 .3400 0 .2800 0 .1800
2007 0 .4700 0 .1000 0 .3400 0 .2800 0 .1800
2008 0 .4300 0 .1000 0 .3400 0 .2800 0 .1800
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
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.
-170-

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 .1330
0 .2000 0 .1670 0 .1220
0 .2000 0 .1670 0 .2520
0 .2000 0 .1670 0 .2520
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
-171-

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, 2014
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 5 7,653,434 0.76 %
KRM Development Corporation 35,775,300 0.47
Great American Life Insurance Company 15,721,000 0.21
Beach Harbor Campers Cooperative Inc 12,582,700 0.17
White's Heritage LLC 11,752,939 0.16
K Hovnanian at Kent Island LLC 11,500,000 0.15
Mears Point Association 10,783,567 0.14
TC Shopping Center Limited Partners 10,288,967 0.14
Anne Arundel Real Estate Holding Co 10,000,967 0.13
Shore Health System Inc 9,975,900 0.13
Total $ 186,034,774 2.46 %
Total Assessable Base $ 7,540,259,768 100.00 %
For the Fiscal Year Ended June 30, 2005
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 3 0,385,633 0.66 %
KRM Development 17,165,132 0.37
Mears Point Association 8,200,843 0.18
Washington Brick & Terra Cotta Company 8,046,470 0.18
213 Centreville LLC 7,895,366 0.17
Great American Insurance 7,814,632 0.17
Pasquale Didonato 7,495,602 0.16
Beach Harbor Campground 7,069,910 0.15
TC Shopping Center 6,742,594 0.15
Morgan O'Brien 6,600,852 0.14
Total $ 107,417,034 2.33 %
Total Assessable Base $ 4,596,665,870 1 00.00 %
Source: State of Maryland Department of Assessments and Taxation
-172-

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
2005 $ 40,608,914 $ 40,542,167 99.84% $ 66,967 $ 40,609,134 100.00%
2006 43,208,732 43,107,941 99.77% 100,791 43,208,732 100.00%
2007 44,500,414 44,401,745 99.78% 98,669 44,500,414 100.00%
2008 48,575,431 48,505,180 99.86% 70,251 48,575,431 100.00%
2009 53,839,023 53,756,369 99.85% 80,516 53,836,885 100.00%
2010 57,788,231 57,720,564 99.88% 64,349 57,784,913 99.99%
2011 58,758,234 58,696,129 99.89% 58,024 58,754,153 99.99%
2012 64,549,671 64,459,862 99.86% 78,205 64,538,067 99.98%
2013 63,904,147 63,596,067 99.52% 44,944 63,641,011 99.59%
2014 63,184,321 62,834,349 99.45% - 62,834,349 99.45%
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.
-173-

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
2005 $ 59,257,383 $ 684,000 $ - $ 59,941,383
2006 55,564,104 622,500 - 56,186,604
2007 74,717,649 561,000 248,460 75,527,109
2008 69,637,468 822,617 202,978 70,663,063
2009 64,411,805 913,183 155,482 65,480,470
2010 87,967,432 1,652,082 105,884 89,725,398
2011 102,791,729 1,070,632 54,089 103,916,450
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 - 108,841,719
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)
2005 $ 5,142,702 $ 5,343,775 $ - $ 10,486,477 $ 70,427,860 4.40% $ 1,586
2006 4,734,164 14,580,581 - 19,314,745 75,501,349 6.77% 1,661
2007 4,430,817 22,516,916 - 26,947,733 102,474,842 5.50% 2,216
2008 3,947,915 21,058,076 - 25,005,991 95,669,054 4.76% 1,998
2009 3,458,660 19,624,863 - 23,083,523 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
NOTES:
(1) See Table 14 for personal income and population data, which are used in calculating these ratios.
-174-

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)
2005 $ 64,400,085 1.40% $ 1,451
2006 60,298,268 1.19% 1,327
2007 79,148,466 1.39% 1,712
2008 73,585,383 1.15% 1,537
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
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.
-175-

Agriculture in Queen Anne’s County takes many forms, growing crops,
animal husbandry, hunting and vineyards.

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF NET DIRECT AND OVERLAPPING DEBT
AS OF JUNE 30, 2014
Table 11
Name of Jurisdiction Gross Debt
Queen Anne's County:
County Government
Total Net Direct Debt (1) $ 108,841,719
Towns: (2)
Centreville (100%) 12,455,456
Millington (100%) 1 ,268,005
Queenstown (100%) 3 00,640
Sudlersville (100%) 2 ,718,681
Total Net Overlapping Debt 16,742,782
Total Net Direct and Overlapping Debt $ 125,584,501
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.
-177-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
2005 2006 2007
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
Authorized bonded debt under specific public laws
Enterprise Funds, excluding Sanitary District (4) 1,349,878 1,354,131 1,483,571
General Obligation Debt (4) 59,257,383 5 5,564,104 74,717,649
Subtotal 60,607,261 5 6,918,235 76,201,220
Total authorized debt under Title 5 and specific public laws 68,607,261 6 4,918,235 84,201,220
LESS Outstanding bonds, notes payable, and capital leases (5) 70,427,860 7 5,501,349 102,474,842
Less: Sanitary District debt (4) 9,088,902 1 7,919,731 25,430,093
Subtotal 61,338,958 5 7,581,618 78,072,206
Legal Debt Margin - Other than the Sanitary District $ 7,268,303 $ 7,336,617 $ 7,404,931
Debt related to the Sanitary District Proprietary Fund:
Total taxable assessed value (3) $ 4,596,665,870 $ 5,061,055,866 $ 5,693,764,229
Plus exempt property (3) 330,840,259 3 69,542,935 419,303,486
Total assessed value $ 4,927,506,129 $ 5,430,598,801 $ 6,113,067,715
Debt Limit - 6% of total assessed value (2) $ 295,650,368 $ 3 25,835,928 $ 366,784,063
LESS Sanitary District 9,266,078 1 8,069,698 25,552,847
Less: Restricted Cash and Investments in the
Debt Service Fund available for payment of principal 4,105,842 3,940,626 4,746,865
5,160,236 1 4,129,072 20,805,982
Legal Debt Margin - Sanitary District $ 290,490,132 $ 311,706,856 $ 345,978,081
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.
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QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
(CONTINUED)
2008 2009 2010 2011 2012 2013 2014
$ 8,000,000 $ 8,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000
1,458,458 1,446,993 1,862,866 2,340,495 2,304,876 2,160,475 2,053,736
69,637,468 64,411,805 8 7,967,432 1 02,791,729 9 7,127,263 9 0,092,100 1 07,883,563
71,095,926 65,858,798 8 9,830,298 1 05,132,224 9 9,432,139 9 2,252,575 1 09,937,299
79,095,926 73,858,798 9 7,830,298 1 13,132,224 1 07,432,139 1 00,252,575 1 17,937,299
95,669,054 88,563,993 1 11,337,131 1 24,067,449 1 16,192,021 1 07,497,099 1 23,479,930
23,520,278 21,616,088 1 9,735,239 1 7,803,690 1 5,870,626 1 4,097,769 1 2,584,475
72,148,776 66,947,905 9 1,601,892 1 06,263,759 1 00,321,395 9 3,399,330 1 10,895,455
$ 6,947,150 $ 6,910,893 $ 6 ,228,406 $ 6,868,465 $ 7,110,744 $ 6 ,853,245 $ 7,041,844
$ 6,398,550,545 $ 7,083,072,750 $ 7,580,931,277 $ 7,740,096,715 $ 7,685,372,199 $ 7,620,480,255 $ 7,540,259,768
474,798,401 547,163,868 5 96,219,654 6 44,654,739 6 94,372,116 7 32,300,804 6 96,880,673
$ 6,873,348,946 $ 7,630,236,618 $ 8,177,150,931 $ 8,384,751,454 $ 8,379,744,315 $ 8,352,781,059 $ 8,237,140,441
$ 412,400,937 $ 457,814,197 $ 4 90,629,056 $ 5 03,085,087 $ 5 02,784,659 $ 5 01,166,864 $ 4 94,228,426
23,520,278 21,616,088 1 9,735,239 1 7,803,690 1 5,870,626 1 4,097,769 1 2,584,475
4,551,821 4,180,188 3,925,026 3,658,194 3,244,564 2,840,468 2,763,304
18,968,457 17,435,900 1 5,810,213 1 4,145,496 1 2,626,062 1 1,257,301 9,821,171
$ 393,432,480 $ 440,378,297 $ 4 74,818,843 $ 488,939,591 $ 490,158,597 $ 4 89,909,563 $ 484,407,255
-179-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LOCAL DEBT LIMIT
LAST SIX FISCAL YEARS
Table 12-b
2009 2010 2011 2012 2013 2014
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 $ 7,540,259,768
2.5% 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 $ 188,506,494
LESS Outstanding and New General Obligation Debt (2) (3)
Enterprise Funds' Debt - Bonds and Notes $ 23,083,523 $ 21,611,733 $ 20,150,999 $ 18,175,502 $ 16,258,244 $ 14,638,211
General Obligation Debt - Bonds and Notes 65,324,988 89,619,514 103,862,361 98,016,519 91,238,855 108,841,719
Total Outstanding and New General Obligation Debt $ 88,408,511 $ 111,231,247 $ 124,013,360 $ 116,192,021 $ 107,497,099 $ 123,479,930
2.5% of Total Taxable Assessed Base in Excess of
Total Outstanding and New General Obligation Debt $ 88,668,308 $ 78,292,035 $ 69,489,058 $ 75,942,284 $ 83,014,907 $ 65,026,564
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) 47,091 48,650 47,899 47,798 48,650 48,650
$3,000 Per Capita $ 3,000 $ 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 $ 145,950,000
LESS Outstanding and New General Obligation Debt (1) $ 88,408,511 $ 111,231,247 $ 124,013,360 $ 116,192,021 $ 107,497,099 $ 123,479,930
$3,000 Per Capita in Excess of
Total Outstanding and New General Obligation Debt $ 52,864,489 $ 34,718,753 $ 19,683,640 $ 27,201,979 $ 38,452,901 $ 22,470,070
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 and Finance 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
(e) review and revise this Debt Policy as necessary, but no later than September 1, 2015.
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.
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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, 2014
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 972 1 8.52%
Chesapeake College 508 2 4.45%
Queen Anne's County Government 429 3 3.76%
S.E.W. Friel 275 4 2.41%
Paul Reed Smith Guitars 249 5 2.18%
REEB Millwork 180 6 1.58%
Cracker Barrel Old Country Store 170 7 1.49%
Fisherman's Inn 135 8 1.18%
Genesis HealthCare/Corsica Hills Center 134 9 1.18%
Federal Resources Supply 114 10 1.00%
Total 3,166 27.75%
For the Fiscal Year Ended June 30, 2005
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 8 92 1 8.21%
Queen Anne's County Government 4 76 2 4.38%
S.E.W. Friel 2 75 3 2.53%
Paul Reed Smith Guitars 1 90 4 1.75%
Delmarva Sash & Door, Inc. 1 78 5 1.64%
Harris Crab House 1 60 6 1.47%
Acme Markets 1 47 7 1.35%
Kmart 1 40 8 1.29%
Tidewater Publishing 1 30 9 1.20%
Fisherman's Inn 1 27 10 1.17%
Total 2,715 24.99%
Source: Queen Anne's County Economic Development Office; Table 15.
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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)
2005 44,392 $ 1,601,707,752 $ 3 6,081 3.50% 7,649
2006 45,450 1 ,114,661,250 24,525 3.50% 7,162
2007 46,241 1 ,861,755,142 4 0,262 3.50% 7,774
2008 47,886 2 ,009,392,332 4 1,962 4.00% 7,790
2009 47,091 2 ,113,538,262 4 4,882 7.00% 7,774
2010 48,650 1 ,721,674,850 3 5,389 7.00% 7,723
2011 47,899 1 ,722,448,040 3 5,960 7.20% 7,722
2012 47,798 1 ,672,547,616 3 4,992 6.50% 7,757
2013 48,650 1 ,757,238,000 3 6,120 6.40% 7,717
2014 48,650 1 ,771,687,050 3 6,417 5.10% 7,720
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.
-182-

Queen Anne’s County Courthouse in Centreville, circa 1794, is the oldest courthouse in
continuous use in the State of Maryland.

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME EQUIVALENTS
LAST TEN FISCAL YEARS
Table 15
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Number of Exempt Employees 35 35 36 31 29 29 26 26 28 29
Number of Full Time Employees 420 432 470 481 475 461 406 395 391 393
Number of Part Time Employees (FTE) 21 23 25 20 18 17 10 9 8 7
Total County Government Employees 476 490 531 532 522 507 442 430 427 429
NOTES:
Source: Queen Anne's County Office of Budget and Finance.
-184-

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME ONLY BY FUNCTION
LAST EIGHT FISCAL YEARS
Table 16
2007 2008 2009 2010 2011 2012 2013 2014
Governmental Activities:
General Government 90 90 89 87 77 74 82 77
Public Safety:
Police 49 53 52 50 49 53 56 58
Fire - Emergency Management Services 69 68 69 67 64 61 64 67
Detention Center 37 38 42 42 41 42 41 41
Animal Services 11 11 8 8 10 10 6 3
Public Works 87 91 85 79 61 51 51 54
Health 1 1 1 1 1 1 1 1
Social Services 40 38 38 37 32 36 32 36
Parks (1) 44 44 45 45 31 27 27 29
Conservation of Natural Resources 3 3 3 3 3 3 4 4
Economic/Community Development 12 12 10 9 7 3 6 2
Total Governmental Activities 443 449 442 428 376 361 370 372
Business-Type Activities:
Sanitary District 47 46 45 45 44 45 45 46
Bay Bridge Airport 3 3 3 3 3 3 1 1
Golf - - - - - - 1 1
Public Landings 3 3 3 3 3 3 2 2
Total Business-Type Activities 53 52 51 51 50 51 49 50
Total Full-Time County Employees 496 501 493 479 426 412 419 422
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.
- As data becomes available in future years, this Table will be updated to include data for up to ten fiscal years.
Source: Queen Anne's County Office of Budget and Finance.
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QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Table 17
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Governmental Activities:
General Government:
Planning & Zoning:
Number of commercial permits issued 272 256 235 23 40 35 27 99 75 51
Number of residential permits issued:
Single Family Permits 247 224 160 138 90 153 106 119 161 133
Multi Family Permits 1 - - - 13 28 4 20 21 12
Renovations and Additions Permits 680 608 541 539 324 304 295 207 312 327
Total residential permits issued 928 832 701 677 427 485 405 346 494 472
Public Safety:
Fire and Rescue:
Number of volunteer members 630 630 600 663 663 689 689 689 689 689
Police:
Uniformed Police Officers 49 49 49 53 54 54 55 59 61 61
Number of law violations:
Physical arrests 1,536 1,115 1,413 1,373 1,429 917 1,216 848 1,144 1,239
Traffic violations 5,307 4,962 5,310 5,745 8,276 6,183 5,760 5,818 5,915 6,514
Detention Center:
Detention Center Officers 30 31 33 35 37 39 40 38 40 41
Average yearly prison population 96 99 1 13 1 12 97 102 103 86 128 138
Public Works:
Wastewater Treated - Daily (mgd) 1.5 1.5 1.5 1.6 1.7 2.1 1.7 1.9 2.0 2.0
Education:
Number of Personnel
Teachers 479 496 501 522 528 533 530 537 546 550
Administrators 39 39 40 40 38 37 37 39 39 41
Support 321 318 327 338 338 336 310 300 294 344
Other 53 59 55 77 76 76 64 47 47 37
Number of Students 7,649 7,162 7,774 7,790 7,774 7,723 7,722 7,757 7,717 7,720
Number of High School Graduates N/A 514 563 560 590 562 566 598 537 605
NOTES:
N/A - Data not readily available, or not available in a manner consistent with this display.
Source: Various County departments.
-186-

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Table 18
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Governmental Activities:
Public Safety:
Fire and Rescue:
Number of volunteer stations 10 1 0 1 0 1 0 10 10 10 10 9 9
Equipment:
Engines 17 1 7 1 6 1 6 16 17 17 17 18 17
Tankers 7 7 9 9 9 9 9 9 9 8
Aerial Units 4 4 4 4 4 5 5 5 5 4
Rescue Units 5 5 5 6 6 7 7 7 8 6
Brush Units 7 7 8 8 8 8 8 8 8 7
Air Units (MD State Police) 1 1 1 3 3 - - - - -
Boats 5 5 3 1 1 5 5 5 5 6
Ambulance/Medic Units 15 1 8 2 0 1 6 16 17 17 17 17 13
Cars/Other 20 2 0 1 6 1 7 17 22 22 22 22 25
Police:
Number of Stations 1 1 1 1 1 1 1 1 1 1
Number of Vehicles
Patrol 43 34 54 57 64 60 53 62 62 68
Other 15 26 15 7 13 17 21 3 3 12
Detention Center
Capacity 104 104 104 104 104 148 148 148 148 148
Public Works:
County Maintained Roads and Streets
Paved (miles) 524 534 536 530 539 540 540 540 541 543
Unpaved (miles) 13 13 12 15 12 12 12 12 12 12
County Owned Water and
Wastewater Facilities
Water
Miles of Mains 47 49 51 56 57 58 59 59 61 62
Water Treatment Plants 10 10 10 11 11 11 11 11 11 11
Booster Stations 2 2 2 2 2 2 2 2 2 2
Wastewater
Miles of Mains 105 107 109 114 116 117 118 118 120 121
Wastewater Treatment Plants 1 1 1 1 1 1 1 1 1 1
Wastewater Collection, Lift,
and Pumping Stations 29 29 29 31 31 31 31 31 31 31
Education:
Number of Schools
High Schools 2 2 2 2 2 2 2 2 2 2
Middle Schools 3 3 3 3 4 4 4 4 4 4
Elementary Schools 8 8 8 8 8 8 8 8 8 8
Parks and Recreation:
Parks 24 28 29 32 33 33 33 33 33 33
Park Acreage 2,024 2,579 2,572 2,633 2,633 2,915 2,915 2,915 2,915 2,915
Public Landings 21 21 21 21 20 20 21 21 19 20
Library:
Number of Libraries 3 3 3 3 3 3 3 3 3 3
NOTES:
Source: Various County departments.
-187-

Callinectes sapidus (from the Greek calli- = “beautiful”, nectes = “swimmer”,
and Latin sapidus = “savory”) or...The Maryland Blue Crab!