Fiscal Year 2020 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, 2020
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal 1-5
Certificate of Achievement for Excellence in Financial Reporting 7
Organization Chart 8
Certain Elected and Other Officials 9
FINANCIAL SECTION
Independent Auditor's Report 11-13
Management's Discussion and Analysis (required supplementary information) 15-30
BASIC FINANCIAL STATEMENTS 31
Government-Wide Financial Statements
Statement of Net Position 32-33
Statement of Activities 34-35
Governmental Fund Financial Statements
Balance Sheet 36
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 37
Statement of Revenues, Expenditures and Changes in Fund Balances 38
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 39
Enterprise Fund Financial Statements
Statement of Net Position 40-41
Statement of Revenues, Expenses, and Changes in Net Position 42-43
Statement of Cash Flows 44-45
Fiduciary Fund Statements
Statement of Fiduciary Net Position 46
Statement of Changes in Fiduciary Net Position 47
Notes to Financial Statements 49-122
REQUIRED SUPPLEMENTARY INFORMATION 123
Maryland State Retirement and Pensions Systems
Schedule of the Proportionate Share of the Net Pension Liability 124
Schedule of Contributions 124
Actuarial Assumptions - Pension Plan 125
Other Post-Employment Benefits (OPEB) Trust
Schedule of Changes in the Net OPEB Liability 126
Schedule of Actual Employer Contribution as a Percentage of Covered-Employee Payroll 127
Actuarial Assumptions - OPEB Plan 127
Length of Service Awards Program (LOSAP)
Schedule of Changes in the Net LOSAP Liability 128
Notes to the Required Supplemental Information (LOSAP) 129
Budgetary Comparisons for General Fund 129
General Fund
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 130-132

QUEEN ANNE'S COUNTY, MARYLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2020
TABLE OF CONTENTS (CONTINUED)
Page(s)
FINANCIAL SECTION (CONTINUED)
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
(OTHER SUPPLEMENTARY INFORMATION) 134
Non-Major Governmental Funds 135-137
Combining Balance Sheet 138-140
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 142-144
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budgetary Basis 146-153
Non-Major Enterprise Funds 155-156
Combining Statement of Net Position 157
Combining Statement of Revenues, Expenses, and Changes in Net Position 158
Combining Statement of Cash Flows 159
Fiduciary Funds 160-161
Other Post-Employment Benefit Trust Fund
Combining Statement of Fiduciary Net Position 162
Combining Statement of Changes in Fiduciary Net Position 163
Agency Funds
Statement of Assets and Liabilities 165
Statement of Changes in Assets and Liabilities 166-167
Community Partnerships for Children Special Revenue Fund 168
Combining Balance Sheets - By Grantor 169
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
By Community Partnership Agreements (CPA) and
Non-Community Partnership Agreements (Non-CPA) 170-172
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budgetary Basis 174-175
STATISTICAL SECTION (UNAUDITED) 177
Table
1 Net Position by Component - Government-Wide 178-179
2a Changes in Net Position - Government-Wide 180-183
2b General Tax Revenues - Governmental Activities 184
3 Fund Balances - Governmental Funds 185
4 Changes in Fund Balances - Governmental Funds 186-187
5 Assessed Value of Taxable and Exempt Property 189
6a Real Property Tax Rates - County Direct Rate 190
6b Real Property Tax Rates - County Special Taxing Districts 191
6c Real Property Tax Rates - Overlapping Governments - Towns 192-193
7 Ten Highest Commercial Property Taxpayers 194
8 Property Tax Levies and Collections 195
9 Ratios of Outstanding Debt by Type 196
10 Ratios of General Bonded Debt Outstanding 197
11 Computation of Net Direct and Overlapping Debt 199
12a Computation of Legal Debt Margin 200-201
12b Computation of Local Debt Limit 202-203
13 Principal Employers 204
14 Demographic Statistics 205
15 County Government Employees - Full-Time Equivalents 206
16 County Government Employees - Full-Time Only by Function 207
17 Operating Indicators by Function 208
18 Capital Asset Statistics by Function 209

Introductory Section

Queen O F F I C E O F B U D G E T , FINANCE AND
INFORMATION TECHNOLOGY
Anne’s
The Liberty Building
County 107 North Liberty Street
Centreville, Maryland 21617
County Commissioners: Telephone: (410) 758-4064
James J. Moran, At Large Fax: (410) 758-3036
J ack N. Wilson Jr., District 1
S tephen Wilson, District 2 County Administrator: Todd R. Mohn
Philip L. Dumenil, District 3 Director, Budget, Finance and IT: Jonathan R. Seeman
Christopher M. Corchiarino, District 4 Chief Treasury Officer: Jeffrey A. Rank
Information Technology Manager: Megan DelGaudio
January 19, 2021
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, 2020.
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, 2020, 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, 2020, are fairly presented in conformity with
GAAP. The independent auditors’ report is presented as the first component of the financial section of this report.
The independent audit of the financial statements of Queen Anne’s County is part of a broader, federally mandated, “Single
Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements
require the auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s
internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements
involving the administration of federal awards. These reports are available in Queen Anne’s County’s separately issued Single
Audit report.
____________________________ ___________________________
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GAAP requires that management provide a narrative introduction, overview, and analysis, entitled Management’s
Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be
read in conjunction with it. Queen Anne’s County’s MD&A can be found immediately following the report of the
independent auditor.
PROFILE OF THE GOVERNMENT
Queen Anne’s County is situated on the Eastern Shore of Maryland. It is bordered to the north by Kent County, to
the east by the State of Delaware, to the south by Caroline and Talbot counties, and to the west by the Chesapeake
Bay. Access to the western shore of Maryland is provided by the Chesapeake Bay Bridge. The County is 373 square
miles in area and has approximately 52,597 citizens. The County seat is located in Centreville. The County
Commissioners of Queen Anne’s County are empowered to levy a property tax on both real and personal properties
located within its boundaries.
Queen Anne’s County was formed in 1706 and is governed by a five-member Board of County Commissioners.
County code provides that one Commissioner be elected purely at large; the remaining four Commissioners must
reside in specific districts, but are elected at large. The Commissioners operate under Maryland’s Code Home Rule
form of government. Both the executive and legislative functions of the County are vested with the Board of County
Commissioners.
Queen Anne’s County provides a full range of services including public safety (police, volunteer fire protection,
emergency services, detention center, and animal control), highways and streets, solid waste, planning and zoning,
economic development, culture and recreation, education, libraries, and general administrative services. In
conjunction with the State, the County also operates services related to general community health and social services.
In addition, the County operates a water and wastewater utility, an airport, a golf course, and public landings and
marinas.
BUDGETARY CONTROLS
The annual budget serves as the foundation for the County’s financial and budgetary controls to ensure compliance
with legal provisions embodied in the annual appropriation resolution approved by the County Commissioners. The
County budget is comprised of the budget message, current revenue and expense budgets and the capital budget and
capital program. Activities of the general fund, certain special revenue funds, and the enterprise funds are included in
the current budget.
The current operating budget includes appropriations for the full range of basic services. These services include
county administration, public safety, education, public works, community services, parks, debt and other agencies.
The capital budget includes funds to construct major governmental facilities such as the Detention Center renovation,
roads, schools, and water and sewer infrastructure. Capital projects usually take more than a year to complete, unlike
the operating budget which covers only a year.
The budget process begins each Fall when the County departments receive budget preparation instructions for the
capital budget which is then followed by instructions for the operating budget. The budget preparation is directed by
the Director of Budget, Finance, and Information Technology. After a thorough review of the departmental requests,
a County Administrator’s proposed budget is submitted to the County Commissioners in March. The County
Commissioners then conduct a series of public hearings and work sessions to review the proposed budget. After its
review, the County Commissioners finalize the budget and set tax rates, fees and charges needed to generate enough
revenue to balance the budget. The budget must be adopted by the County Commissioners on or before the last day of
the month of the fiscal year currently ending, although the Commissioners typically adopt the budget at the end of
May.
The Office of Budget, Finance, and Information Technology is responsible for budgetary control. The appropriated
budgets are prepared at the fund, function (e.g., public safety), and department (e.g., Detention Center) level.
Expenditures/expenses may not legally exceed appropriations, based on the level at which they were adopted. For the
General Fund, annual expenditure budgets are legally adopted at the departmental level. For all other Governmental
Funds, for which annual budgets are adopted, expenditure budgets are legally adopted at the fund level. Budgets for
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the General Capital Projects Fund and the Roads Capital Projects Fund reflect multi-year appropriations at the
individual project level.
Department Heads may make transfers of appropriations within a department of up to $10,000 with the approval of
the County Administrator. Transfers of appropriations or appropriation of new revenues in excess of $10,000 require
the approval of the County Commissioners. Budget to actual comparisons are provided in this report for individual
governmental funds for which an appropriated annual budget has been adopted. The budget comparisons for the
General Fund are presented as part of the Required Supplementary Information portion of this report. For non-major
funds with appropriated annual budgets, budget to actual comparisons are presented in the Supplementary
Information subsection of this report.
ECONOMIC OUTLOOK AND CONDITION
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which Queen Anne’s County operates.
The unemployment rate for Queen Anne’s County is typically below the state and national averages, as shown in the
chart below. The June 2020 rate for the County was 7.0%, compared to the state’s rate of 8.5% and the U.S.’s rate of
11.1%. The fiscal year 2020 average rate for the County was 4.4%. The increase in the unemployment rate for fiscal
year 2020 was the result of the COVID-19 pandemic.
Unemployment Rate
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Queen Anne's County Maryland United States
LOCAL ECONOMY
The local employment base is somewhat limited and centers on several stable manufacturers, as well as the
agriculture, maritime, construction, retail, leisure, and hospitality industries. The three largest employers are
governmental units, including the County, the Board of Education, and Chesapeake College. There is a small, but
growing, base of specialty manufacturers. In addition, the County’s proximity to the Western Shore enables about
60% of the workforce to commute to locations outside the County, primarily to higher paying jobs in the Baltimore
and Washington areas.
Property, income, recordation, and transfer tax revenue all increased when comparing current year to prior year for
governmental funds. Property taxes increased in fiscal year 2020 by 1.5% to $71.7 million due to an increase in
assessable base. Property tax revenue is projected to increase by 0.4% into fiscal year 2021 with revenue projected to
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be approximately $298 thousand above the 2020 fiscal year level. Local income tax is the County’s other main
revenue source. Income tax collections increased by 11.3% in fiscal year 2020, from $55.3 million in fiscal year
2019 to $61.5 million in fiscal year 2020 as a result of increased employment, capital gains and wages.
Recordation tax improved in fiscal year 2020 with an increase of 5.9% over fiscal year 2019, from $6.0 million in
fiscal year 2019 to $6.3 million in fiscal year 2020. In addition to an increase in recordation tax revenue, the transfer
tax revenue also increased in fiscal year 2020 by 9.1%, from $2.1 million in fiscal year 2019 to $2.3 million in fiscal
year 2020. Both the recordation and transfer tax revenue increases are a direct result of the continued improvement in
the housing market and recent development in the County.
LONG TERM FINANCIAL PLANNING
Rainy Day Fund – Ordinance No. 12-21 was adopted in January 2013 for the purpose of establishing and
maintaining a Rainy Day Fund for contingencies of an emergency nature; requiring annual reports on such fund
balance; providing for the appropriation of such funds to meet emergency needs; and requiring surplus revenues be
used to maintain the Rainy Day Fund at a set minimum amount. Beginning in fiscal year 2017, County Ordinance
No. 16-24 changed the minimum amount of the rainy day fund to 8% (previously 7%) of the following year’s
budgeted general fund operating revenues, as recommended by the Spending Affordability Committee. The County
funded the Rainy Day Fund with the required amount of $11,197,210 in fiscal year 2020.
Revenue Stabilization Fund (Previously “Special Fund”) – Resolution No. 14-05 was adopted in March 2014 for the
purpose of establishing and maintaining a Special Fund to set aside certain general funds of the County for certain
unanticipated projects, initiatives, and other one-time expenses. Resolution No. 16-99 was adopted in December 2016
for the purpose of renaming the “Special Fund” to the Revenue Stabilization Fund and revising the maximum amount
of such fund. The maximum amount of the Revenue Stabilization Fund shall not exceed 5% of budgeted general fund
operating revenues and the transfer to the General Fund shall only be made after the requirements of the Rainy Day
Fund have been met. The County funded the Revenue Stabilization Fund with $998,256 in fiscal year 2020. The
current balance of the Revenue Stabilization Fund is $6,998,256.
Spending Affordability Committee – Ordinance No. 15-11 was adopted in November 2015 for the purpose of
establishing a committee to provide recommendations and projections for the upcoming budget year. Specifically, the
Committee is charged to review in detail the status and projections of revenues and expenditures for the County for
the next budget year and subsequent five years; to review future County revenue levels and consider the impact of
economic factors such as changes in personal income and assessable base growth; and to review future expenditure
levels with consideration of County long-term obligations and any pressure for growth in costs.
The Committee’s recommendations help determine general expenditure guidelines based on projected revenue, and
the amount of new County debt authorization for the upcoming fiscal year. The Committee recommends policy
changes primarily regarding budgeting, debt, and fund balance. This Committee also assesses the County’s ability to
repay bond debt, determines debt capacity using several debt measures, and provides general guidance regarding
future capital budgets.
Capital Projects - The County Commissioners’ six-year capital program, starting with fiscal year 2021, prioritizes
capital expenditures over these years to meet the County’s needs. The six-year program totals $200.2 million and
includes: $45.8 million for various Sanitary District projects (includes the Southern Kent Island Sewer Service at
$33.1 million); $31.3 million for Roads Board capital projects (includes $12.3 million for asphalt overlays); $24.2
million for Administration and General Services (includes $12.1 million for building the YMCA) $22.1 million for
the Detention Center (almost entirely for the Detention Center renovation); $15.9 million for various school related
projects (includes $8.0 million for the Board of Education Administration building) $12.9 million for Parks; $12.4
million for the Department of Emergency Services; and $11.0 million for the Bay Bridge Airport;
FINANCIAL POLICIES
Bond Ratings - The financial policies and management practices of Queen Anne’s County were recognized by three
major rating agencies. Fitch Rating Service issued a AAA bond rating, Moody’s issued a rating of Aa1, and Standard
& Poor’s also issued a AAA rating.
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Debt Management Policy – In calendar year 2013, the County adopted Resolution 13-04, which revised the
County’s Local Debt Policy. In accordance with this policy, the Director of Budget, Finance, and Information
Technology is responsible for following certain procedures to ensure that debt limits established by the Policy are not
exceeded. A key element of the Policy is that prior to the issuance of any new bonded indebtedness, the Director
must certify that existing and new General Obligation Debt will not exceed (1) 2.5% of the total taxable assessable
base and (2) $3,000 per capita. This policy also stipulates that although there is some flexibility as to the acceptable
percentage of debt service to general fund expenditures, and no absolute limit has been established by the rating
agencies or the Government Finance Officers Association, anything above 12% of total general fund expenditures
would be a cause to carefully monitor debt service. In addition to the debt management policy, the Spending
Affordability Committee recommended that the limit of debt service to general fund expenditures should be limited to
10% and the County Commissioners have adopted that as a limit.
For fiscal year 2020, Queen Anne’s County general obligation debt was 1.6% of the total taxable assessable base, and
the per capita debt measurement was $2,643. The debt service was 9.2% of the general fund expenditures for the year.
All thresholds are well below the policy limits.
Fund Balance Policy – Resolution 12-21 was adopted in calendar year 2012 for the purpose of establishing criteria
in which year end fund balances can be used. There are five purposes for which using fund balance is permitted: (1)
paygo for items/projects in the County Capital Improvement Plan, (2) as a supplement to the Rainy Day Fund if it is
underfunded, (3) to pay down existing debt, (4) reserved for future non-operating expenses related to fiscal
emergencies, and (5) as one time non-recurring expenditures of capital or non-capital items.
AWARDS AND ACKNOWLEDGMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to Queen Anne’s County, Maryland for its comprehensive annual
financial report (CAFR) for the fiscal year ended June 30, 2019. 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 twenty-one consecutive years (fiscal years 1999-2019). 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, Justine Franzen, Teresa Ward, and Karen Rodgers. Their
dedication and professionalism in the preparation of Queen Anne’s County financial statements has resulted in
consistently accurate and transparent financial reporting.
Respectfully submitted,
Jonathan R. Seeman
Director of Budget, Finance and Information Technology
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Queen Anne's County
Maryland
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2019
Executive Director/CEO
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QUEEN ANNE’S COUNTY, MARYLAND
GOVERNMENTAL ORGANIZATION
CERTAIN ELECTED AND OTHER OFFICIALS
AS OF JUNE 30, 2020
CERTAIN ELECTED OFFICIALS
County Commissioners James J. Moran, At Large
Jack N. Wilson, Jr., District 1
Stephen Wilson, District 2
Philip L. Dumenil, District 3
Christopher M. Corchiarino, District 4
State’s Attorney Lance G. Richardson, Esq.
Sheriff Raymond G. Hofmann
CERTAIN DEPARTMENT HEADS AND OTHER OFFICIALS
County Administrator Todd R. Mohn
Director of Public Works Alan Quimby, P.E.
Director of County Administration Todd R. Mohn
Director of Planning and Zoning* E. Michael Wisnosky
Director of Community Services Catherine R. Willis
Director of Budget, Finance
and Information Technology* Jonathan R. Seeman
Chief Treasury Officer Jeffrey Rank
County Attorney Patrick E. Thompson, Esq.
Independent Auditor Bond Counsel Financial Advisor
TGM Group LLC McKennon, Shelton Public Advisory Consultants
Certified Public Accountants & Henn, LLP Baltimore, Maryland
Salisbury, Maryland Baltimore, Maryland
* E. Michael Wisnosky retired and Amy Moredock was named the Director of Planning and Zoning in October 2020.
*Jonathan R. Seeman will be retiring effective February 1, 2021.
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INDEPENDENT AUDITORS’ REPORT
County Commissioners of
Queen Anne’s County
Centreville, Maryland
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of Queen Anne’s County, Maryland (the “County”) as of and for the year
ended June 30, 2020, 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 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 Queen Anne’s County Free Library, is based solely upon the
reports of the other auditors. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that 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.
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Opinions
In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund information of Queen Anne’s County, Maryland, as of June 30,
2020, 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 and required supplementary information, as listed in the table of contents, be
presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We and other auditors have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the County’s basic financial statements. The introductory section, other 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.
-12-

Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 15,
2021, on our consideration of the County’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the County’s internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards in considering the County’s
internal control over financial reporting and compliance.
Salisbury, Maryland
January 15, 2021
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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, 2020. We encourage readers to consider the discussion and analysis along with
the other information in this report, including the transmittal letter, basic financial statements, and the notes to
the financial statements.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to Queen Anne’s County Government’s
basic financial statements. The County’s basic financial statements are comprised of three components:
Government-Wide Financial Statements
Fund Financial Statements
Notes to the Financial Statements
This report also contains other required and non-required supplementary information in addition to the basic
financial statements themselves.
Government-Wide financial statements: The government-wide financial statements are designed to provide
readers with a broad overview of Queen Anne’s County Government’s finances, in a manner comparable to a
private sector business.
The statement of net position presents information on all of Queen Anne’s County Government’s assets and
liabilities, with the difference between the two reported as net position. Over time, increases or decreases in
net position may serve as a useful indicator of whether the financial position and condition of Queen Anne’s
County Government is improving or declining.
The statement of activities presents information showing how the government’s net position changed during
the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported
in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected
taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of Queen Anne’s County Government
that are principally supported by taxes and intergovernmental revenue (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and charges
(business-type activities).
The governmental activities of Queen Anne’s County Government include general government, public safety,
public works, health, social services, education, library, conservation of natural resources, and economic and
community development. The business-type activities of Queen Anne’s County Government include water
and sewer services, an airport, a golf course, and public landings and marinas.
The government-wide financial statements include not only Queen Anne’s County Government itself (known
as the primary government), but also legally separate component units. Queen Anne’s County Government
has the following discretely presented component units: Queen Anne’s County Board of Education and the
Queen Anne’s County Free Library. Financial information for these component units is reported separately
from the financial information presented for the primary government itself. The government-wide financial
statements can be found in the basic financial statements section of this report.
-15-

Fund Financial Statements: A fund is a group of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. Queen Anne’s County Government,
like other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of Queen Anne’s County Government can be divided into
three categories: governmental funds, proprietary funds, and fiduciary funds. Fund financial statements can
be found throughout this report, as listed in the table of contents.
Governmental funds: Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on near term inflows and outflows of
spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a
government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better
understand the long-term impact of the government’s near-term financing decisions. Both the balance sheet
and the statement of revenues, expenditures, and changes in fund balances for governmental funds provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities. These
two reconciliations begin with governmental fund financial data; describe all transactions that are added or
subtracted to yield governmental activities; and end with governmental activities financial data. These
reconciliations can be found within this report, as listed in the table of contents.
Queen Anne’s County maintains three types of governmental funds: the general fund, a variety of special
revenue funds, and five capital project funds. Information is presented separately in the governmental fund
balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances
for all governmental funds. Fund type is identified for each fund.
Queen Anne’s County adopts an annual appropriated budget for its general fund (includes the roads board);
school, fire, and parks impact fee capital projects funds; and the following special revenue funds: department
of aging, housing and community services, grants fund, economic development incentive, BRIDGE fund,
community partnerships for children, law library, inmate welfare, agricultural transfer, rural legacy, dredging
special assessments, and Kent Narrows. A budgetary comparison statement has been provided for each of
these funds, which can be found within this report, as listed in the table of contents.
Proprietary funds: Queen Anne’s County maintains enterprise funds to report the same functions presented as
business-type activities in the government-wide financial statements. Queen Anne’s County Government uses
enterprise funds to account for its water and sewer services, airport, golf course, and public landings and
marinas. The basic proprietary fund financial statements can be found within this report, as listed in the table
of contents.
Fiduciary funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statements because the
resources of those funds are not available to support Queen Anne’s County Government’s own programs. The
County acts as a fiduciary for two trust and five agency funds. The accounting used for fiduciary funds is
much like that used for proprietary funds except that the agency funds report only assets and liabilities and do
not report net assets or changes therein. The basic fiduciary fund financial statements can be found within this
report, as listed in the table of contents.
Notes to the financial statements: The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to the
financial statements can be found within this report, as listed in the table of contents.
-16-

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 2020 2019 2020 2019 2020 2019
Current and Other Assets $ 132,910,759 $ 114,236,045 $ 43,420,777 $ 37,222,731 $ 176,331,536 $ 151,458,776
Capital Assets 1 80,791,100 181,658,454 121,339,499 118,044,330 302,130,599 299,702,784
Total Assets 313,701,859 295,894,499 164,760,276 155,267,061 478,462,135 451,161,560
Total Deferred Outflows of Resources 8,495,121 8,075,641 720,473 738,797 9,215,594 8,814,438
Noncurrent liabilities 220,110,368 216,472,932 45,574,349 43,105,229 265,684,717 259,578,161
Other liabilities 11,416,367 9,806,608 1,621,510 1,994,221 13,037,877 11,800,829
Total Liabilities 231,526,735 226,279,540 47,195,859 45,099,450 278,722,594 271,378,990
Total Deferred Inflows of Resources 5,383,218 5,222,543 12,721,010 12,667,589 18,104,228 17,890,132
Net position:
Net investment in capital assets 114,252,313 115,143,089 86,939,502 85,916,730 201,191,815 201,059,819
Restricted amounts 19,844,181 18,962,289 2,037,318 2,234,440 21,881,499 21,196,729
Unrestricted amounts (deficit) ( 48,809,467) (61,637,321) 16,587,060 10,087,649 (32,222,407) ( 51,549,672)
Total Net Position $ 85,287,027 $ 72,468,057 $ 105,563,880 $ 98,238,819 $ 190,850,907 $ 170,706,876
The County’s total current and other assets increased by $24.9 million, or 16.4 percent, to $176.3 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 2020 by $190.9 million.
Net position is divided into three categories: net investment in capital assets; restricted amounts; and
unrestricted amounts. By far the largest portion, $201.2 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 $55.8 million at June 30, 2020. Absent the effect of this relationship, the
County would have reported a positive unrestricted amount of $23.6 million on its government-wide financial
statements, rather than the negative unrestricted net assets of $32.2 million reported herein. For a multi-year
view of this calculation, see the Footnote presented in Table 1 of the Statistical Section.
An additional $21.9 million of the County’s total net position represents resources that are subject to
restrictions on how they may be used. For governmental activities, this amount includes: $11.7 million related
to general government services; $3.0 million for economic/community development; $3.7 million for public
safety; and $1.5 million for conservation of natural resources. For business-type activities, this amount
includes $2.0 million restricted to meet Sanitary District debt covenants.
At the end of the current fiscal year, Queen Anne’s County Government reports positive balances in two out of
three categories of net position, both for the government as a whole, as well as for its separate governmental
activities. Business-type activities reports positive balances in all net position categories.
-17-

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 2020 2019 2020 2019 2020 2019
Revenues:
Program revenues:
Charges for services $ 6,536,797 $ 6,505,479 $ 14,835,575 $ 11,376,269 $ 21,372,372 $ 17,881,748
Operating grants and contributions 6,545,553 5,453,618 2,647,049 2,133,701 9,192,602 7,587,319
Capital grants and contributions 4,218,687 4,348,637 1,974,341 3,626,906 6,193,028 7,975,543
General revenues:
Property taxes 7 1,874,566 70,670,569 - - 71,874,566 7 0,670,569
Local income tax 6 7,698,447 57,728,293 - - 67,698,447 5 7,728,293
Other local taxes
Admission and amusement taxes 150,153 155,913 - - 150,153 155,913
Recordation taxes 6,339,183 5,986,660 - - 6,339,183 5,986,660
Hotel taxes 530,601 650,613 - - 530,601 650,613
County transfer taxes 2,283,527 2,093,502 - - 2,283,527 2,093,502
Investment income 1,393,017 1,772,464 589,126 550,691 1,982,143 2,323,155
Gain on sale of capital assets 4 4,343 25,823 17,876 33,100 62,219 5 8,923
Miscellaneous 900,976 979,201 907,830 865,732 1,808,806 1,844,933
Total Revenues 168,515,850 156,370,772 20,971,797 1 8,586,399 1 89,487,647 174,957,171
Expenses:
Governmental Activities:
General government 1 7,299,695 16,493,064 - - 17,299,695 1 6,493,064
Public safety 3 1,445,313 31,231,182 - - 31,445,313 3 1,231,182
Public works 1 5,045,105 19,118,090 - - 15,045,105 1 9,118,090
Parks & recreation * 7,780,241 - - - 7,780,241 -
Health 2,176,263 1,865,300 - - 2,176,263 1,865,300
Social services 4,940,431 5,804,131 - - 4,940,431 5,804,131
Education 6 6,848,496 62,579,905 - - 66,848,496 6 2,579,905
Libraries 1,916,365 1,858,711 - - 1,916,365 1,858,711
Conservation of natural resources 1,423,080 2,696,971 - - 1,423,080 2,696,971
Economic and Community development 2,281,480 1,808,000 - - 2,281,480 1,808,000
Interest and fiscal charges 4,391,332 4,712,864 - - 4,391,332 4,712,864
Business-type Activities:
Water and sewer - - 11,602,537 11,232,955 11,602,537 1 1,232,955
Airport - - 968,205 1,434,031 968,205 1,434,031
Golf course - - 541,335 584,718 541,335 584,718
Public landings and marinas - - 683,738 1,342,308 683,738 1,342,308
Total Expenses 155,547,801 148,168,218 13,795,815 1 4,594,012 1 69,343,616 162,762,230
Increase in Net Position before Transfers 1 2,968,049 8,202,554 7,175,982 3,992,387 20,144,031 12,194,941
Transfers in (out) ( 149,079) (1,341,011) 149,079 1,341,011 - -
Increase in Net Position 12,818,970 6,861,543 7,325,061 5 ,333,398 2 0,144,031 12,194,941
Net Position, prior year 7 2,468,057 65,606,514 98,238,819 92,905,421 170,706,876 158,511,935
Net Position - current year $ 85,287,027 $ 72,468,057 $ 1 05,563,880 $ 9 8,238,819 $ 1 90,850,907 $ 170,706,876
* In fiscal year 2019, Parks was included in Public Works and Recreation was included in Social Services.
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Governmental activities:
Revenues for governmental activities were $168.5 million for fiscal year 2020. The following chart depicts
revenues by source for governmental activities:
Revenues by Source -
Governmental Activities
For the Year Ended June 30, 2020
County transfer taxes Gain on Sale of
1.36% Capital Assets
0.03%
Investment
Hotel taxes Income Miscellaneous
0.31% 0.83% 0.53% Charges for services
3.88%
Recordation taxes
3.76%
Operating, capital &
Admission and restricted grants
amusement taxes 6.39%
0.09%
Local income tax
40.17%
Property taxes
42.65%
 Taxes comprise the largest source of County revenue, totaling $148.9 million (88.3 percent) of total
revenue for fiscal year 2020. Of that amount, property and local income tax together yielded $139.6
million (82.8 percent) of all revenue. Each County sets its own property and income tax rates, within
parameters established by the State. For fiscal year 2020, 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 $6.5 million, reflect fees charged to County citizens. These primarily
support education ($1.6 million or 24.4 percent), general government ($1.5 million or 23.1 percent),
public safety ($1.4 million or 21.1 percent), parks and recreation ($823 thousand or 12.6 percent) and
public works ($817 thousand or 12.5 percent).
 Operating grants and contributions, totaling $6.5 million, reflect grants from Federal and State
agencies that support specific County programs. Programs that benefitted the most were: social
services ($2.3 million or 34.7 percent), public safety ($1.7 million or 25.9 percent), and public works
($1.2 million or 18.9 percent).
 Capital grants and contributions, totaling $4.2 million, reflect contributions from Federal and State
agencies, as well as developers. Programs that benefitted the most were: parks and recreation ($2.2
million or 53.0 percent), conservation of natural resources ($832 thousand or 19.7 percent) and
general government ($520 thousand or 12.3 percent).
-19-

Expenses for all governmental activities were $155.5 million for fiscal year 2020. The following chart depicts
expenses by function for governmental activities:
Expenses -
Governmental Activities
For the Year Ended June 30, 2020
Economic and
Community
development
1.47% Interest and fiscal
Conservation of charges
natural resources 2.82%
0.91% General government
11.12%
Libraries
1.23%
Public safety
20.22%
Education Public works
42.98% 9.67%
Social services
3.18%
Health Parks & recreation
1.40% 5.00%
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 $66.8 million (43.0 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 2020 2019 2020 2019 2020 2019
Education $ 66,848,496 $ 62,579,905 $ 1,593,200 $ 1,318,609 $ (65,255,296) $ (61,261,296)
Public Safety 3 1,445,313 31,231,182 3,189,484 2,753,662 (28,255,829) ( 28,477,520)
General Government 1 7,299,695 16,493,064 2,459,074 2,966,703 (14,840,621) ( 13,526,361)
Public Works 1 5,045,105 19,118,090 2,096,354 4,293,239 (12,948,751) ( 14,824,851)
Parks & Recreation * 7,780,241 - 3,097,214 - ( 4,683,027) -
Social Services 4,940,431 5,804,131 2,709,699 2,387,208 ( 2,230,732) (3,416,923)
Economic and Community Development 2,281,480 1,808,000 962,258 205,300 ( 1,319,222) (1,602,700)
Conservation of Natural Resources 1,423,080 2,696,971 1,086,179 2,339,954 (336,901) (357,017)
Other 8,483,960 8,436,875 107,575 43,059 ( 8,376,385) (8,393,816)
Total $ 155,547,801 $ 148,168,218 $ 17,301,037 $ 16,307,734 $ (138,246,764) $ (131,860,484)
* In fiscal year 2019, Parks was included in Public Works and Recreation was included in Social Services.
Of the total cost of $155.5 million for governmental activities, $17.3 million (11.1 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 $6.5 million,
while governments and other organizations that benefited indirectly from these programs contributed operating
grants of $6.5 million and capital grants of $4.2 million.
County taxpayers paid for most of the remaining $138.2 million in net program costs, through a variety of
County taxes, for a total of $148.9 million. Net program costs of services provided to the public, in order of
net cost, were: $65.3 million for education; $28.3 million for public safety; $14.8 million for general
government; $12.9 million for public works; $4.7 million for parks and recreation; $2.2 million for social
services; $1.3 million for economic and community development; $337 thousand for conservation of natural
-20-

resources; and $8.4 million for other services. See Changes in Net Position and General Fund Budgetary
Highlights for further details.
Changes in net position: Government-wide revenues, less expenses, plus/minus transfers in/out, yield changes
in net position. During fiscal year 2020, governmental activities increased the County’s net position overall by
$12.8 million, compared to an increase of $6.9 million in fiscal year 2019. The following discussion explains
changes in net position relative to the prior fiscal year.
Revenues for governmental activities increased by $12.1 million (7.8 percent). The following key revenues
changed, when compared to the prior fiscal year:
 Income taxes increased by $10.0 million (17.3 percent), from $57.7 million in fiscal year 2019 to
$67.7 million in fiscal year 2020. This increase was the result of an increase of $6.3 million in receipts
from the State for the County’s portion of the income tax collections. The remaining increase resulted
from an increase in the County’s portion of the income tax reserve held by the State of Maryland.
 Property taxes increased by $1.2 million (1.7 percent), from $70.7 million in fiscal year 2019 to $71.9
million in fiscal year 2020 due to an increase in property assessments.
 Operating grants and contributions increased by $1.1 million (20.0 percent), from $5.5 million in
fiscal year 2019 to $6.5 million in fiscal year 2020. The entire increase is the result of grant funding
provided by the Federal Government to assist the County in navigating through the COVID-19
pandemic.
Expenses for governmental activities increased by $7.4 million (5.0 percent) and transfers out to business-type
activities decreased by $1.2 million. Key positive and negative expense changes, in order of relative
importance, are:
 Education increased by $4.3 million (6.8 percent). Of this increase, $2.6 million resulted from an
increase in funding to the Board of Education. The remaining increase resulted from additional
funding for school related capital projects, such as the Kent Island High School energy management
system and fire alarm, building upgrades and priority assessments, and equipment and vehicles.
 Parks & Recreation had total expenses of $7.8 million in fiscal year 2020. Prior to fiscal year 2020,
Parks was included in Public Works and Recreation was included in Social Services. Beginning in
fiscal year 2020, Parks & Recreation is separated out. The total increase in fiscal year 2020 was $1.4
million, which resulted from expenses for the turf fields.
 Public Works decreased by $4.1 million (21.3%). In fiscal year 2019, Public Works included expenses
totaling $5.5 million for Parks which are not included in the current year. Therefore, the net change in
Public Works would be an increase of $1.4 million. Of this increase, $521 thousand relates to assets
that were donated to external entities, which didn’t occur in fiscal year 2019. Another $550 thousand
of the total increase resulted from renovations and improvements to the Liberty building, transfer
stations, and miscellaneous projects.
 General Government increased by $807 thousand (4.9 percent), mainly as a result of an increase of
$529 thousand in depreciation expense. This increase was due to the new County Courthouse which
resulted in multiple new assets of which depreciation began in fiscal year 2020. In addition, expenses
for other post-employment benefits (OPEB) increased by $306 thousand due to increased funding to
the OPEB Trust.
 Conservation of Natural Resources decreased by $1.3 million (47.2 percent) due to decreases in
easement acquisitions in fiscal year 2020. A total of $152 thousand was spent on easements in fiscal
year 2020, compared to $2.1 million spent in fiscal year 2019. Generally, the timing of easement
-21-

purchases is affected by the evaluation process of the identified land, as well as the availability of
State funds.
 Social Services decreased by $864 thousand which is almost entirely related to Recreation which was
included in Social Services in fiscal year 2019 but separated out in fiscal year 2020.
 Transfers out to business-type activities decreased by $1.2 million due to a transfer of $975 thousand
from the General Capital Projects Fund to the Sanitary District in fiscal year 2019. No such transfer
occurred in fiscal year 2020.
Business-type activities:
Revenues, transfers in, and expenses for business-type activities were $21.0 million, $149 thousand, and $13.8
million, respectively, for fiscal year 2020. 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, 2020
Miscellaneous
4.33%
Investment
income Gain on sale of
2.81% capital assets
0.09%
Operating &
capital grants &
contributions Charges for
22.03% services
70.74%
Expenses by Service -
Business-Type Activities
For the Year Ended June 30, 2020
Public landings
Golf course
and marinas
3.92%
4.96%
Airport
7.02%
Water and
sewer
84.10%
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Business-type activities increased the County’s net position altogether by $7.3 million in fiscal year 2020,
which is $2.0 million more than the prior year’s increase of $5.3 million. The fiscal year 2020 change in net
position resulted primarily from:
 Operating revenues before transfers increased by $2.4 million (12.8 percent), from $18.6 million in
fiscal year 2019 to $21.0 million in fiscal year 2020, for all business-type activities. Charges for
services increased by $3.5 million, mainly due to increased allocation fees in the Sanitary District
resulting from the Four Seasons and Bay Bridge Cove developments. Operating grants and
contributions increased by $513 thousand. The net increase can be broken down as follows: $2.0
million increase in the Sanitary District resulting from grant funding for the Southern Kent Island
(SKI) sewer system, $628 thousand decrease in the Bay Bridge Airport resulting from the timing of
various capital projects and an $867 thousand decrease in Public Landings due to the timing of the
Kent Narrows Dredging project. Capital grants and contributions decreased by $1.7 million primarily
due to a decrease in funding for the Four Seasons development, resulting from the timing of the
development.
 Transfers in to business-type activities decreased by $1.2 million, mainly due to a transfer of $975
thousand from the General Capital Projects Fund to the Sanitary District in fiscal year 2019, as
mentioned above in the section on governmental expenses.
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 $101.2 million, compared to $89.7 million for the prior year.
Approximately 15.7 percent of this total ($15.9 million) constitutes unassigned fund balance, which is
available for spending. The total unassigned fund balance of $15.9 million is comprised of $15.9 million of
positive unassigned fund balance for the general fund, reduced by negative unassigned fund balances of $24
thousand in the non-major governmental funds. Additional detail on the negative unassigned balances can be
found in Note 16 of this report.
The nonspendable fund balance of $2.4 million, at 2.4 percent of the total fund balance, is not available for
spending and includes amounts related to inventory and prepaid items. Restricted fund balance of $29.8
million (29.5 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 $11.2 million for the rainy day fund.
Committed fund balance of $28.3 million (27.9 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 $7.0 million for the revenue stabilization fund.
The remaining $24.8 million of fund balance (24.5 percent) 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 $41.1 million, which is an increase of $6.0 million
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from the fiscal year 2019 balance of $35.1 million. The increase resulted mainly as a result of expenditures
and other financing uses being less than final budgetary appropriations by $5.8 million due to efficiencies
realized by various departments.
Of the total $41.1 million in fund balance, $15.9 million is unassigned, meaning that there are no constraints
on how the funds can be spent. Beginning in fiscal year 2017, County Ordinance No. 16-24 changed the
minimum amount of the rainy day fund to 8.0 percent (previously 7.0 percent) of budgeted general fund
operating revenues as recommended by the Spending Affordability Committee. As a result of that Ordinance,
$11.2 million of rainy day funds are included in the General Fund’s restricted fund balance of $14.7 million for
fiscal year 2020. The remaining fund balance is comprised of $2.4 million in nonspendable, $7.0 million in
committed, and $1.1 million of assigned.
For further explanations of General Fund revenues and expenditures, see the General Fund Budgetary
Highlights section of this MD&A.
The General Capital Projects Fund accounts for all capital projects related to governmental funds, except those
accounted for in the Roads Capital Projects Fund, which is discussed below.
As of June 30, 2020, the General Capital Projects Fund has a total fund balance of $33.6 million, compared to
$31.2 million at the end of the prior fiscal year. The $33.6 million in total fund balance is comprised of $10.3
million in restricted fund balance, mainly for unspent bond proceeds, $2.7 million of fund balance committed
for specific projects, and $20.6 million of assigned fund balance. The increase in General Capital Projects
fund balance resulted from the transfer in from the General Fund, which will be used to fund future capital
projects.
The Roads Capital Projects Fund accounts for financial resources used for the construction of County Road
infrastructure, as well as other large multi-year projects that relate to capital assets.
As of June 30, 2020, the Roads Capital Projects Fund has a total fund balance of $2.9 million, compared to
$3.0 million at the end of the prior fiscal year. Of this total $2.9 million fund balance, $2.4 million has been
assigned to fund ongoing projects, while $571 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 2020
amounted to $18.4 million, which is $6.6 million more than the prior year. This increase resulted from
increased allocation fees for two County developments and from increased grant revenue. Net investment in
capital assets also increased by $1.3 million. In addition, the restricted amount for capital projects decreased by
$975 thousand, due to the timing of the Four Seasons development.
Total net position of the Sanitary District amounted to $84.6 million at the end of fiscal year 2020, which
increased by $7.6 million when compared to the prior year.
The unrestricted net position of the Bay Bridge Airport Enterprise Fund at year end amounted to negative $1.4
million, reflecting an increase of $48 thousand. The investment in capital assets for the Bay Bridge Airport
decreased by $251 thousand in the current fiscal year.
Total net position of the Bay Bridge Airport amounted to $15.0 million at the end of fiscal year 2020, which is
a decrease of $203 thousand from the prior year amount of $15.2 million.
-24-

A discussion of Enterprise Fund capital assets and long-term debt can be found in those sections presented
later in this MD&A.
General Fund Budgetary Comparisons
The County adopts an operating budget for the General Fund as of July 1 each year and amends that budget
throughout the year in response to actual expenditures. The Schedule of Revenues, Expenditures, and Changes
in Fund Balance – Budget and Actual can be found as part of Required Supplemental Information, which is
located after the Notes. The Schedule reports original and final budgets, as well as the variance between actual
expenditures and final budgets.
Original to Final Budget Comparisons: The final expenditure budget for the General Fund, including transfers
out, totaled $150.6 million. Amendments increased spending authority by $6.2 million during fiscal year
2020, when compared to the original budget of $144.4 million.
Major components of these expenditure budget increases are as follows:
 Budgeted Transfers Out to General Capital Projects increased by $5.5 million during the year. There
are several capital projects in which the County plans to move aggressively on and will rely on fund
balance available in the General Capital Projects fund to cover a portion of the costs.
 Budgeted Public Works increased by $357 thousand, mainly as a result of the addition of Animal
Services which was budgeted at $249 thousand.
 Budgeted Public Safety increased by $301 thousand, due to miscellaneous increases in the Sheriff’s
Office, the Detention Center, and Emergency Services.
Budget to Actual Comparisons: Actual revenues for the General Fund, including other financing sources and
before appropriated fund balance were more than final budgetary estimates by $645 thousand.
Actual expenditures, and other financing uses, were less than final budgetary appropriations by $5.8 million.
The net effect of these two disparities was a positive variance of actual to final budget of $6.5 million.
The most noteworthy differences between final budgeted amounts and actual amounts are summarized as
follows:
Revenues:
 Local Income Tax revenue was $1.1 million more than the final budget (1.8 percent) due to increased
wages and capital gains.
 Transfers In were $1.2 million less than the final budget (100 percent), as a result of transfer in from
School Impact fees not being made in the fiscal year. Management determined that it was more
advantageous to leave the funds in the Impact Fee Fund in anticipation of future Board of Education
projects.
Expenditures:
 Final Budgeted Salaries and Benefits were $40.7 million for the year, while actual costs were $39.2
million. They were underspent at year-end by $1.5 million (3.8 percent). The Sheriff’s Office was
underspent by $742 thousand, Parks department by $465 thousand, and the Roads department by $221
thousand. This was due to the number of vacant positions during the fiscal year and the lapsed funds
associated with the recruitment of staff.
-25-

 Final Budgeted Other Operating Charges were $109.8 million for the year, while actual costs were
$105.5 million. These costs were lower than budget at year end by $4.3 million (3.9 percent).
Operating Charges include contracted services, supplies, other charges, debt service, and transfers out.
o Contracted Services were underspent by $873 thousand, with the largest savings realized by
the Detention Center ($320 thousand), Emergency Services ($94 thousand), and Information
Technology ($86 thousand).
o Supplies were underspent by $336 thousand, largely due to savings by Roads ($119 thousand)
and Solid Waste ($92 thousand).
o Other Charges were underspent by $1.9 million. Savings were realized in Insurance ($349
thousand), Contingency ($185 thousand), General Services ($137 thousand), and
Intergovernmental ($130 thousand). In addition, the health department realized savings of
$292 thousand, which represents the unspent portion of their allocation that was returned to
the County in fiscal year 2020. The remaining savings for other charges were spread
throughout the General Fund.
o Debt Service was underspent by $558 thousand, which resulted from savings realized with the
refunding of the 2009 bonds.
o Transfers Out were underspent by $589 thousand, due to savings realized by the Department
of Aging ($224 thousand), Housing and Community Services ($105 thousand) and the Golf
Course Enterprise Fund ($194 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, 2020 amounted to $302.1 million (net of accumulated depreciation).
This investment in capital assets includes land and land improvements, intangible rights, construction in
progress, buildings, improvements other than buildings, infrastructure, autos, machinery, and equipment.
Capital asset activities, net of depreciation, are summarized as follows:
Governmental Activities Business Type Activities Total
Capital Assets, Net of Depreciation 2020 2019 2020 2019 2020 2019
Land and Land Improvements $ 86,326,959 $ 86,448,217 $ 15,632,770 $ 15,632,770 $ 101,959,729 $ 102,080,987
Intangible Rights - Easements 821,819 821,819 6,140 6,140 827,959 827,959
Construction in Progress 7,232,179 27,161,399 13,354,715 9,480,284 20,586,894 36,641,683
Buildings 51,584,860 31,614,518 6,056,202 6,302,427 57,641,062 37,916,945
Improvements other than Buildings 7,085,899 7,340,954 8,444,025 8,977,762 15,529,924 16,318,716
Infrastructure 9,586,115 9,973,515 68,556,560 67,965,145 78,142,675 77,938,660
Auto, Machinery, and Equipment 18,153,269 18,298,032 9,289,087 9,679,802 27,442,356 27,977,834
Total $ 180,791,100 $ 181,658,454 $ 121,339,499 $ 118,044,330 $ 302,130,599 $ 299,702,784
Queen Anne’s County’s total investment in capital assets for the current fiscal year, net of depreciation,
increased by 0.8 percent, or $2.4 million. Of this amount, governmental investment in capital assets decreased
by $867 thousand, while business-type investment in capital assets increased by $3.3 million.
Changes in the County’s capital assets, with depreciation shown separately, are summarized as follows. Note
that completed projects that were reclassified from construction in progress (CIP) to other asset accounts
during the year net to zero and are reported in the same column.
-26-

Governmental Activities
Changes in Capital Assets 2019 Additions Transfers Retirements 2020
Land and Land Improvements $ 86,448,217 $ - $ - $ (121,258) $ 86,326,959
Intangible Rights - Easements 821,819 - - - 821,819
Construction in Progress 27,161,399 1,954,630 (21,788,423) (95,427) 7,232,179
Buildings 48,363,268 4 91,194 21,394,321 (709,176) 69,539,607
Improvements other than Buildings 11,019,917 1 75,738 - - 11,195,655
Infrastructure 19,236,142 - - - 19,236,142
Auto, Machinery, and Equipment 37,885,909 2,429,103 394,102 (1,311,053) 39,398,061
Total Assets before depreciation 230,936,671 5,050,665 - (2,236,914) 233,750,422
Less Depreciation (49,278,217) (5,105,993) - 1,424,888 (52,959,322)
Total Assets after depreciation $ 181,658,454 $ (55,328) $ - $ (812,026) $ 180,791,100
Business-Type Activities
Changes in Capital Assets 2019 Additions Transfers Retirements 2020
Land and Land Improvements $ 15,632,770 $ - $ - $ - $ 15,632,770
Intangible Rights - Easements 6,140 - - - 6,140
Construction in Progress 9,480,284 3,878,391 - (3,960) 13,354,715
Buildings 16,165,829 27,200 - - 16,193,029
Improvements other than Buildings 15,126,030 - - - 15,126,030
Infrastructure 103,161,225 2,681,960 - - 105,843,185
Auto, Machinery, and Equipment 25,625,633 285,151 - (54,159) 25,856,625
Total Assets before depreciation 185,197,911 6,872,702 - (58,119) 192,012,494
Less Depreciation (67,153,581) (3,573,573) - 54,159 (70,672,995)
Total Assets after depreciation $ 118,044,330 $ 3,299,129 $ - $ (3,960) $ 1 21,339,499
Noteworthy capital asset events during the current fiscal year for governmental activities included the
following:
 Land decreased by $121 thousand due to the donation of the Downes’ Building and Christ Church.
 Construction in Progress (CIP) decreased by a net amount of $19.9 million. The following factors
contributed to this increase:
Major additions to Construction in Progress totaling $2.0 million include: (a) Design and site work for
the Cross County Connector Trail ($1.2 million); (b) Kent Island Library expansion ($248 thousand);
(c) ERP software ($147 thousand); (d) Information Technology fiber network construction ($130
thousand); (e) Emergency Services improvements ($116 thousand); (f) Detention Center renovations
($95 thousand); (g) Senior Center security system ($29 thousand); (h) Chesapeake Heritage Visitor’s
Center renovations ($22 thousand); and (i) Parks and Recreation pavilion and concession
improvements ($17 thousand).
Costs reclassified from Construction in Progress totaling $21.8 million include: (a) New Courthouse
($21.7 million); (b) Parks and Recreation general improvements ($59 thousand); and (c) Information
Technology phone system ($27 thousand).
Retirements from Construction in Progress of $95 thousand include write-offs of costs incurred in the
renovation of the Chesapeake Heritage Visitor’s Center due to a portion of the project not resulting in
an asset.
-27-

 Buildings increased by a net amount of $21.2 million. The following factors contributed to this
increase:
Major additions to Buildings totaling $491 thousand include: (a) Construction and site work for the
new Courthouse ($301 thousand); (b) 4-H Park restroom renovation ($109 thousand); and (c) Animal
Control resinous flooring ($81 thousand).
Costs reclassified from Construction in Progress totaling $21.4 million include: (a) Construction and
site work for the new Courthouse ($21.3 million) and (b) 4-H Park restroom renovations ($54
thousand).
Retirements from Buildings totaling $709 thousand include: (a) Donation of Christ Church ($683
thousand) and (b) Donation of Downes’ Building ($26 thousand).
 Improvements other than buildings increased by $176 thousand due to: (a) Sidewalks at the new
Courthouse ($74 thousand); (b) Transfer site improvements ($53 thousand); (c) Parks and Recreation
paving ($39 thousand); and (d) 4-H Park improvements ($10 thousand).
 Auto, Machinery and Equipment increased by a net amount of $1.5 million. The following factors
contributed to this net increase:
Major additions to Auto, Machinery and Equipment totaled $2.4 million and included departmental
vehicles and equipment replacement for the following: (a) Roads ($394 thousand); (b) Sheriff’s Office
($338 thousand); (c) Aging ($331 thousand); (d) Emergency Services ($329 thousand); (e) Parks and
Recreation ($269 thousand); (f) Information Technology ($244 thousand); (g) Solid Waste ($188
thousand); (h) Detention Center ($137 thousand); (i) General Services ($91 thousand); (j) Circuit
Court ($49 thousand); (k) Economic Development ($24 thousand); and (l) Planning and Zoning ($11
thousand).
Costs reclassified from Construction in Progress totaling $394 thousand included machinery and
equipment for the following: (a) Circuit Court ($367 thousand) and (b) Information Technology ($27
thousand).
Retired assets of $1.3 million included the following, the majority of which were fully depreciated: (a)
Emergency Services vehicles and equipment sold or discarded ($696 thousand); (b) Sheriff’s Office
vehicles and equipment sold or discarded ($221 thousand); (c) Circuit Court equipment sold or
discarded ($138 thousand); (d) Solid Waste vehicles and equipment sold or discarded ($71 thousand);
(e) Planning and Zoning equipment sold or discarded ($43 thousand); (f) Public Works vehicles and
equipment sold or discarded ($38 thousand); (g) Information Technology equipment sold or discarded
($26 thousand); (h) Aging vehicles discarded ($25 thousand); (i) QACTV equipment discarded ($22
thousand); (j) Animal Control equipment discarded ($16 thousand); (k) Parks and Recreation
equipment sold ($12 thousand); and (l) General Services equipment discarded ($6 thousand).
Noteworthy capital asset transactions during the current fiscal year for business-type activities included the
following:
 Construction in Progress increased by a net amount of $3.9 million. The following factors contributed
to this increase:
Major additions to Construction in Progress totaling $3.9 million include: (a) planning, design and
construction work for the Southern Kent Island (SKI) sewer system ($3.8 million); (b) Environmental
Assessment for the Bay Bridge Airport ($66 thousand); and (c) equipment for the Sanitary department
that was not paid in full nor delivered prior to year-end ($42 thousand).
-28-

Retirements from Construction in Progress of $4 thousand include write-offs of costs incurred in the
Public Landings Chesapeake Heritage Visitors Center Bulkhead project due to the project not
resulting in an asset.
 Buildings increased by $27 thousand resulting from improvements at a Sanitary collection station.
 Infrastructure increased by $2.7 million resulting from various water and sewer infrastructure, of
which $2.0 million was contributed by commercial developers to be maintained by the County. The
remaining $707 thousand related to infrastructure for the Four Seasons development.
 Auto, Machinery and Equipment increased by a net amount of $231 thousand. The following factors
contributed to this increase:
Major additions totaling $285 thousand included: (a) New sewer pumps, well pumps and other
sanitation equipment ($199 thousand); (b) Public Landings vehicles and trailers ($45 thousand); and
(c) Sanitary District vehicles ($41 thousand).
Retired assets of $54 thousand included Sanitary District equipment and vehicles sold or discarded.
Additional information on the County’s capital assets can be found in Note 6 of this report.
Long-term debt: At the end of the current fiscal year, Queen Anne’s County Government had total bonded
debt, loans, capital leases, other post-employment benefit obligations, net pension liability, LOSAP (Volunteer
Fireman Pension Plan Length of Service Award Program), and compensated absence obligations of $265.7
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 $265.7 million in debt, $45.6 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 $2.0 million, which are
restricted to payment of the Sanitary District’s subsequent year’s debt. See Note 10 for restricted assets and
subsequent year debt service obligations.
Debt activities are summarized as follows:
Governmental Activities Business Type Activities Total
Outstanding Debt 2020 2019 2020 2019 2020 2019
Bonds, Notes, and Premiums $ 137,289,000 $ 1 37,083,402 $ 34,408,250 $ 32,144,767 $ 171,697,250 $ 169,228,169
Other Post-Employment Benefit Obligation 44,880,492 4 3,482,396 8,227,553 8,027,801 53,108,045 51,510,197
Net Pension Liability 26,959,651 2 6,508,985 2,523,666 2,528,455 29,483,317 29,037,440
LOSAP Liability 8,048,034 6,669,736 - - 8,048,034 6,669,736
Compensated Absences 2,933,191 2,728,413 414,880 404,206 3,348,071 3,132,619
Total Long-term Debt $ 220,110,368 $ 2 16,472,932 $ 45,574,349 $ 43,105,229 $ 265,684,717 $ 259,578,161
During the 2020 fiscal year, the County’s total net debt increased by $6.1 million (2.4 percent). Of this
amount, governmental debt increased by $3.6 million (1.7 percent), while business-type debt increased by $2.5
million (5.7 percent). In fiscal year 2020, the County issued the public facilities bonds of 2020 totaling $9.0
million and public facilities refunding bonds totaling $15.3 million. The Sanitary District continued borrowing
funds through the Maryland Water Quality Administration for the Southern Kent Island (SKI) project. The
total amount borrowed for this project in fiscal year 2020 was $3.4 million. In addition, the total other post-
employment benefit obligations increased by $1.6 million, the net pension liability increased by $446
thousand, the LOSAP liability increased by $1.4 million, and compensated absences increased by $215
thousand. Offsetting these increases and decreases were changes in accruals, plus the County’s repayment of
-29-

existing debt in accordance with established repayment schedules for bonds, notes, and capital lease
agreements.
Additional information on the County’s long-term debt can be found in Note 9 of this report.
The public local laws of Queen Anne’s County limit the amount of general obligation debt to no more than
$8.0 million, beyond any bonded indebtedness of the County. Currently, approximately $7.2 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 2020, Queen Anne’s County Government received “AAA” bond ratings from both Fitch
Rating Service and Standard & Poor’s and an “Aa1” bond rating from Moody’s.
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 2021 fiscal year:
 Property assessments are projected to increase by 6.2 percent over the previous year, based on State
Assessment Office values used to compute the Constant Yield rate.
 Income tax revenue was projected at $52.4 million for the 2021 budget.
The following are a few of the highlights from the fiscal year 2021 budget:
o Other Post-Employment Benefits shall continue to be funded in accordance with the approved
ten-year plan;
o The Board of Education will be funded at Maintenance of Effort in fiscal year 2021; and
o The County’s property and income tax rates remained the same.
Requests for information
This financial report is designed to provide a general overview of Queen Anne’s County Government’s
finances for all those with an interest in the government’s finances. Questions concerning any of the
information provided in this report or requests for additional information should be addressed to the Queen
Anne’s County Finance Office, 107 N. Liberty Street, Centreville, Maryland 21617. This report can also be
found on the County’s website, http://www.qac.org (see Government, Departments, Budget, Finance, and IT,
Accounting section, Link to 2020 Comprehensive Annual Financial Report (CAFR)).
-30-

Basic Financial Statements
-31-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
JUNE 30, 2020
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
Equity in Pooled Cash and Investments $ 72,357,925 $ 15,058,749 $ 87,416,674
Cash and Cash Equivalents - - -
Taxes Receivable (Net) 1,148,227 - 1,148,227
Accounts and Loans Receivable (Net) 7,785,225 680,471 8,465,696
Special Assessments (Net) 841,297 - 841,297
Internal Balances 1,798,165 ( 1,798,165) -
Due from Primary Government - - -
Due from Other Governments 28,392,269 7 2,731 28,465,000
Inventories 1,167,645 713,763 1,881,408
Prepaid Items 1,233,019 - 1,233,019
Endowment Fund - - -
Restricted Assets:
LOSAP Plan Assets 3,349,625 - 3,349,625
Equity in Pooled Cash and Investments 14,837,362 16,228,847 31,066,209
Accounts Receivable (Net) - 3 6,469 3 6,469
Special Assessments Receivable (Net) - 12,427,912 12,427,912
Capital Assets:
Nondepreciable Assets 94,380,957 28,993,625 123,374,582
Depreciable Assets, Net 86,410,143 92,345,874 178,756,017
Total Assets 313,701,859 164,760,276 478,462,135
DEFERRED OUTFLOWS OF RESOURCES
Other Post-Employment Benefit Obligation 1,816,424 267,957 2,084,381
Pension Benefits 4,590,231 444,263 5,034,494
LOSAP Benefits 1,423,550 - 1,423,550
Deferred Charge on Refunding 664,916 8 ,253 673,169
Total Deferred Outflows of Resources 8,495,121 720,473 9,215,594
LIABILITIES
Accounts Payable and Other Current Liabilities 4,221,337 1,040,576 5,261,913
Accrued Interest Payable 1,730,999 141,042 1,872,041
Due to Component Units 282,566 - 282,566
Due to Other Governmental Agencies 404,584 - 404,584
Unearned Revenue 4,776,881 248,994 5,025,875
Escrow Deposits - 190,898 190,898
Noncurrent Liabilities:
Due within One Year 9,972,618 1,345,102 11,317,720
Due in More than One Year 210,137,750 44,229,247 254,366,997
Total Liabilities 231,526,735 47,195,859 278,722,594
DEFERRED INFLOWS OF RESOURCES
Other Post-Employment Benefit Obligations 14,115 2 ,143 1 6,258
Pension Benefits 3,129,172 293,484 3,422,656
LOSAP Benefits 456,284 - 456,284
Deferred Inflows related to Refundings 73,601 2 ,922 7 6,523
Deferred Assessments 841,297 12,422,461 13,263,758
Deferred Fees 868,749 - 868,749
Total Deferred Inflows of Resources 5,383,218 12,721,010 18,104,228
NET POSITION
Net Investment in Capital Assets 114,252,313 86,939,502 201,191,815
Amounts Restricted for:
General Government 11,650,145 - 11,650,145
Economic/Community Development 2,988,522 - 2,988,522
Public Safety 3,697,558 - 3,697,558
Conservation of Natural Resources 1,504,574 - 1,504,574
Social Services 3,382 - 3 ,382
Debt Service - 2,037,318 2,037,318
Capital Projects - - -
Other Purposes - - -
Unrestricted Amounts (Deficit) (48,809,467) 16,587,060 ( 32,222,407)
Total Net Position $ 85,287,027 $ 105,563,880 $ 190,850,907
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, 2020
(CONTINUED)
COMPONENT UNITS
BOARD OF FREE
EDUCATION LIBRARY
$ - $ -
15,158,079 8 14,050
- -
294,666 1 0,490
- -
- -
329,774 -
1,684,844 -
33,102 -
78,644 2 8,981
- 1 69,468
- -
- -
- -
- -
7,879,023 2 9,850
149,475,668 1 ,314,900
174,933,800 2 ,367,739
25,943,134 2 61,422
736,335 -
- -
- -
26,679,469 2 61,422
11,055,128 1 85,349
- -
- -
- -
920,881 9,813
- -
366,253 -
232,755,703 8 35,814
245,097,965 1 ,030,976
19,151,866 -
457,007 -
- -
- -
- -
- -
19,608,873 -
155,598,255 1 ,344,750
- -
- -
- -
- -
- -
- -
188,114 -
51,486 1 8,100
(218,931,424) 2 35,335
$ (63,093,569) $ 1 ,598,185
The accompanying notes to the basic financial statements are an integral part of this statement.
-33-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2020
PRIMARY GOVERNMENT
OPERATING CAPITAL
CHARGES FOR GRANTS AND GRANTS AND TOTAL
EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS REVENUE
PRIMARY GOVERNMENT
Governmental Activities
General Government $ 17,299,695 $ 1,509,985 $ 428,812 $ 520,277 $ 2,459,074
Public Safety 31,445,313 1,379,621 1,697,018 112,845 3,189,484
Public Works 15,045,105 817,088 1,233,626 45,640 2,096,354
Parks & Recreation 7,780,241 822,605 37,060 2 ,237,549 3,097,214
Health 2,176,263 - - - -
Social Services 4,940,431 72,840 2,273,959 362,900 2,709,699
Education 66,848,496 1,593,200 - - 1,593,200
Library 1,916,365 - - 107,575 107,575
Conservation of Natural Resources 1,423,080 136,458 117,820 831,901 1,086,179
Economic/Community Development 2,281,480 205,000 757,258 - 962,258
Interest and Fiscal Charges 4,391,332 - - - -
Total Governmental Activities 155,547,801 6,536,797 6,545,553 4 ,218,687 17,301,037
Business-type Activities
Water and Sewer 11,602,537 13,873,082 2,541,550 1 ,974,341 18,388,973
Airport 9 68,205 24,130 95,052 - 119,182
Golf Course 5 41,335 399,603 - - 399,603
Public Landings and Marinas 6 83,738 538,760 10,447 - 549,207
Total Business-type Activities 13,795,815 14,835,575 2,647,049 1 ,974,341 19,456,965
Total Primary Government $ 169,343,616 $ 21,372,372 $ 9,192,602 $ 6 ,193,028 $ 36,758,002
COMPONENT UNITS
Board of Education $ 134,118,934 $ 1,141,449 $ 22,105,107 $ 6 ,068,398 $ 29,314,954
Free Library 2,517,827 4 ,374 453,565 - 457,939
Total Component Units $ 136,636,761 $ 1,145,823 $ 22,558,672 $ 6 ,068,398 $ 29,772,893
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
Net Position - End of Year
The accompanying notes to the basic financial statements are an integral part of this statement.
-34-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2020
(CONTINUED)
NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION
PRIMARY GOVERNMENT COMPONENT UNITS
GOVERNMENTAL BUSINESS-TYPE BOARD OF FREE
ACTIVITIES ACTIVITIES TOTAL EDUCATION LIBRARY
$ (14,840,621) $ - $ ( 14,840,621) $ - $ -
( 28,255,829) - ( 28,255,829) - -
( 12,948,751) - ( 12,948,751) - -
( 4,683,027) (4,683,027)
( 2,176,263) - (2,176,263) - -
( 2,230,732) - (2,230,732) - -
( 65,255,296) - ( 65,255,296) - -
( 1,808,790) - (1,808,790) - -
( 336,901) - (336,901) - -
( 1,319,222) - (1,319,222) - -
( 4,391,332) - (4,391,332) - -
(138,246,764) - ( 138,246,764) - -
- 6,786,436 6,786,436 - -
- (849,023) (849,023) - -
- (141,732) (141,732) - -
- (134,531) (134,531) - -
- 5,661,150 5,661,150 - -
$ (138,246,764) $ 5,661,150 $ ( 132,585,614) $ - $ -
$ - $ - $ - $ (104,803,980) $ -
- - - - ( 2,059,888)
- - - (104,803,980) ( 2,059,888)
71,874,566 - 71,874,566 - -
67,698,447 - 67,698,447 - -
150,153 - 150,153 - -
6,339,183 - 6,339,183 - -
530,601 - 530,601 - -
2,283,527 - 2,283,527 - -
- - - 87,976,332 2,080,839
1,393,017 589,126 1,982,143 6 6,232 7,775
44,343 1 7,876 62,219 - -
900,976 907,830 1,808,806 2 54,374 14,747
( 149,079) 149,079 - - -
151,065,734 1,663,911 152,729,645 88,296,938 2,103,361
12,818,970 7,325,061 20,144,031 (16,507,042) 43,473
72,468,057 98,238,819 170,706,876 (46,586,527) 1,554,712
$ 85,287,027 $ 105,563,880 $ 190,850,907 $ (63,093,569) $ 1,598,185
The accompanying notes to the basic financial statements are an integral part of this statement.
-35-

QUEEN ANNE'S COUNTY, MARYLAND
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2020
MAJOR FUNDS NON-MAJOR TOTAL
GENERAL GENERAL ROADS GOVERNMENTAL GOVERNMENTAL
FUND CAPITAL CAPITAL FUNDS FUNDS
ASSETS
Cash and Cash Equivalents $ 29,401,304 $ 1 8,564,978 $ 2,919,494 $ 21,472,149 $ 7 2,357,925
Prepaid Items 1,233,019 - - - 1 ,233,019
Receivables
Taxes Receivable (Net) 1,147,482 - - 745 1 ,148,227
Accounts and Loans Receivable 297,441 8 28,553 3,027 6,656,204 7 ,785,225
Special Assessments (Net) - - 67,125 774,172 8 41,297
Due from Other Governments 23,194,806 8 9,851 - 1,382,735 2 4,667,392
Due from Other Funds 896,040 1 ,128,732 - - 2 ,024,772
Inventory 1,167,645 - - - 1 ,167,645
Restricted
Restricted LOSAP Plan Assets 3,349,625 - - - 3 ,349,625
Restricted Equity in Pooled Cash - 1 4,837,362 - - 1 4,837,362
Total Assets $ 60,687,362 $ 3 5,449,476 $ 2,989,646 $ 30,286,005 $ 1 29,412,489
LIABILITIES
Accrued Liabilities $ 1,808,334 $ 1 ,560,465 $ - $ 471,395 $ 3 ,840,194
Due to Other Funds - - - 226,607 2 26,607
Due to Component Units - 2 82,566 - - 2 82,566
Due to Other Governmental Agencies - - - 404,584 4 04,584
Unearned Revenue 823,832 4 8,655 - 3,904,394 4 ,776,881
Total Liabilities 2,632,166 1 ,891,686 - 5,006,980 9 ,530,832
DEFERRED INFLOWS OF RESOURCES
Unavailable Income Taxes 16,454,512 - - - 1 6,454,512
Unavailable Property Taxes 409,437 - - - 4 09,437
Unavailable Inter-County Bonds Receivable 106,618 - - - 1 06,618
Unavailable Benefit Assessments - - 67,125 774,172 8 41,297
Unavailable Fees - - - 868,749 8 68,749
Total Deferred Inflows 16,970,567 - 67,125 1,642,921 1 8,680,613
FUND BALANCES
Nonspendable 2,400,664 - - - 2 ,400,664
Restricted 14,711,547 1 0,277,373 - 4,844,411 2 9,833,331
Committed 6,998,256 2 ,680,215 570,966 18,045,648 2 8,295,085
Assigned 1,099,170 2 0,600,202 2,351,555 770,178 2 4,821,105
Unassigned 15,874,992 - - (24,133) 1 5,850,859
Total Fund Balances 41,084,629 3 3,557,790 2,922,521 23,636,104 1 01,201,044
Total Liabilities, Deferred Inflows and
Fund Balances $ 60,687,362 $ 3 5,449,476 $ 2,989,646 $ 30,286,005 $ 1 29,412,489
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, 2020
Total Fund Balance - Governmental Funds $ 101,201,044
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 3,724,877
Capital assets used in governmental fund activities are not current financial resources
and therefore are not reported in the funds.
Capital Assets 233,750,422
Accumulated depreciation (52,959,322) 180,791,100
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.
Property Taxes deferred in governmental funds 409,437
Income Taxes deferred in governmental funds 16,454,512
Loans receivable deferred in governmental funds 106,618 16,970,567
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.
Accrued Interest Payable (1,730,999)
Liability for Retirement Incentive and Employee Contracts (381,143)
Long-Term Liabilities Due within One Year
Accrued Compensated Absences (1,700,895)
Bonds and Notes Payable (8,271,723) (9,972,618)
Long-Term Liabilities Due in More than One Year
Other Post-Employment Benefit Obligation (44,880,492)
Net Pension Liability (26,959,651)
Net LOSAP Liability (8,048,034)
Accrued Compensated Absences (1,232,296)
Bonds and Notes Payable (129,017,277) (210,137,750)
Deferred Inflows and Outflows
Deferred Inflows- Other Post-Employment Benefit Obligations (14,115)
Deferred Inflows - Maryland State Pension (3,129,172)
Deferred Inflows - LOSAP (456,284)
Deferred Inflows - Refunding (73,601)
Deferred Outflows- Other Post-Employment Benefit Obligations 1,816,424
Deferred Outflows - Maryland State Pension 4,590,231
Deferred Outflows - LOSAP 1,423,550
Deferred Charge On Refunding 664,916 4,821,949
Total Net Position - Governmental Activities $ 85,287,027
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, 2020
MAJOR FUNDS NON-MAJOR TOTAL
GENERAL GENERAL ROADS GOVERNMENTAL GOVERNMENTAL
FUND CAPITAL CAPITAL FUNDS FUNDS
REVENUES
Taxes
Local Property Tax $ 7 1,645,066 $ - $ - $ 3 7,323 $ 71,682,389
Local Income Tax 6 1,547,651 - - - 61,547,651
Admission and Amusement Taxes 150,153 - - - 150,153
Recordation Taxes 6 ,147,087 - - 1 92,096 6,339,183
Hotel Taxes 530,601 - - - 530,601
County Transfer Taxes 2 ,283,527 - - - 2,283,527
State Shared Taxes 1 ,074,473 - - 1 17,820 1,192,293
Franchise Fee 485,727 - - - 485,727
Licenses and Permits 543,912 53,678 - - 597,590
Intergovernmental 1 ,615,025 3 ,219,767 - 4 ,671,627 9,506,419
Charges for Current Services 2 ,645,061 24,860 3 4,881 2 ,615,663 5,320,465
Fines and Forfeitures 63,843 590 - 6 8,582 133,015
Investment Income 950,612 226,788 3 5,555 1 80,062 1,393,017
Donations 94,342 19,045 - 2 9,988 143,375
Miscellaneous 718,574 76,113 - 1 06,289 900,976
Total Revenues 1 50,495,654 3 ,620,841 7 0,436 8 ,019,450 162,206,381
EXPENDITURES
Current
General Government 9 ,333,134 596,103 - 1 19,261 10,048,498
Public Safety 2 5,838,244 835,536 - 9 74,243 27,648,023
Public Works 1 0,021,870 739,476 1,864,640 1 23,878 12,749,864
Parks & Recreation 4 ,513,241 2 ,440,825 4 1,774 6,995,840
Health 2 ,147,035 - - - 2,147,035
Social Services 177,746 161,029 - 4 ,174,867 4,513,642
Education 6 1,552,866 5 ,351,991 - - 66,904,857
Library 1 ,889,225 1,942 - - 1,891,167
Conservation of Natural Resources 564,732 - - 9 10,840 1,475,572
Economic/Community Development 745,860 - - 1 ,361,816 2,107,676
Intergovernmental 562,056 - - - 562,056
Miscellaneous 5 ,308,680 - - - 5,308,680
Capital Outlay - 4 ,397,079 393,716 1 72,209 4,963,004
Debt Service
Principal 8 ,552,788 - - 7 1,816 8,624,604
Debt Issuance Costs - 316,027 - - 316,027
Interest and Fiscal Charges 4 ,219,976 456,979 - - 4,676,955
Total Expenditures 1 35,427,453 1 5,296,987 2,258,356 7 ,950,704 160,933,500
Excess of Revenues Over (Under) Expenditures 1 5,068,201 (11,676,146) ( 2,187,920) 6 8,746 1,272,881
OTHER FINANCING SOURCES (USES)
Issuance of Debt - 6 ,841,935 2,158,065 - 9,000,000
Other Financing Source - Proceeds of Refunding Bonds - 1 4,682,184 - - 14,682,184
Bond Premiums - 3 ,654,843 - - 3,654,843
Other Financing Use - Principal on Refunded Debt - (17,043,453) - - (17,043,453)
Proceeds of Capital Asset Disposals 30,607 297 - 45 30,949
Insurance Proceeds 11,311 15,000 - 9 ,450 35,761
Transfers In 225,251 5 ,932,603 - 3 ,532,620 9,690,474
Transfers Out (9,310,064) (73,739) - (455,750) (9,839,553)
Other Financing Sources (Uses) (9,042,895) 1 4,009,670 2,158,065 3 ,086,365 10,211,205
Net Increase (Decrease) in Fund Balances 6 ,025,306 2 ,333,524 (29,855) 3 ,155,111 11,484,086
Fund Balances, July 1 3 5,059,323 3 1,224,266 2,952,376 20,480,993 89,716,958
Fund Balances, June 30 $ 4 1,084,629 $ 3 3,557,790 $ 2,922,521 $ 23,636,104 $ 101,201,044
The accompanying notes to the basic financial statements are an integral part of this statement.
-38-

QUEEN ANNE'S COUNTY, MARYLAND
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2020
Change in Fund Balances - Total governmental funds, per Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds $ 1 1,484,086
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlay as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated
over the estimated useful lives of those assets through an annual depreciation charge. The differences are as follows:
Current year additions of capital assets 5,050,665
Current year disposals of capital assets ( 812,026)
Depreciation expenses recorded in the Statement of Activities ( 5,105,993)
Net Change in Capital Assets (867,354)
Receivables not included in the governmental funds because they relate to debt.
A portion of the County's 2014 Bond offering related to debt issued on behalf of Chesapeake College. Although Queen Anne's County
will submit the payments to the lender for the bonds, there are five Counties that will share the expense of the debt service for the
Chesapeake College project. A receivable is booked in Government-Wide in order to offset the debt recorded on the books related to the
portion of the Chesapeake College project that the other Counties are responsible for.
Change in bond receivable related to 2014 bonds (196,159)
Liability for retirement incentive
As part of the retirement incentives offered in fiscal year 2018, retirees were given a certain period of health insurance
at no cost, rather than the normal premium. The maximum period of no cost health insurance was five years. The liability for the
benefit offered to the retirees is included in the government-wide statements and adjusted each year until the benefit period is over.
As part of an employee contract of a past employee, the County is responsible for a death benefit of $250,000 plus inflation.
This liability will remain until the payment is made.
Change in liability for the retirement incentive and employee contracts (256,443)
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 was booked for the interest reimbursement due, but not yet received. Due to the refunding of the 2009 Bonds, the County
did not receive this reimbursement in fiscal year 2020.
Change in bond interest reimbursement receivable - Build America Bond (77,847)
Revenues that are earned but not collected within sixty days after the end of the fiscal year are not considered to
be "available" to meet current cash requirements and are deferred in the Governmental Funds to the following year. However, these revenues
are recognized in the Statement of Activities. The amount by which this type of deferred inflows increased or (decreased) relative to the
prior year is as follows:
Change in Property Tax Deferred Inflows 192,177
Change in Income Tax Deferred Inflows 6,150,796
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 Position,
issuing debt increases long term liabilities, while repayment reduces those liabilities.
Retirements and repayments made on long term debt 27,131,429
Proceeds of debt ( 27,337,027)
College reimbursement received ( 221,841)
County's allocation to College for debt 56,361
Deferred Refunding Costs (211,377)
(582,455)
Some accrued expenses, reported in the Statement of Activities, do not require the use of current financial
resources and are not reported as expenditures in the Governmental Funds.
Change in:
Accrued Interest Payable (2,590)
Accrued Other Post Employment Benefit Obligation ( 1,398,096)
Net pension liability - Maryland State Pension (450,666)
Net LOSAP Liability ( 1,378,298)
Accrued Compensated Absences (204,778)
Deferred outflow of resources - Other Post-Employment Benefit Obligations 347,214
Deferred outflow of resources - Maryland State Pension (630,509)
Deferred outflow of resources - LOSAP 914,152
Deferred inflow of resources - Other Post-Employment Benefit Obligations 4,743
Deferred inflow of resources - Maryland State Pension (141,817)
Deferred inflow of resources - LOSAP (13,585)
Deferred inflow of resources - Refundings (73,601)
Change in Net Position - governmental activities, per Statement of Activities $ 12,818,970
The accompanying notes to the basic financial statements are an integral part of this statement.
-39-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
ENTERPRISE FUNDS
JUNE 30, 2020
SANITARY DISTRICT
SEWER WATER RESTRICTED
ASSETS OPERATIONS OPERATIONS FUND
Current Assets
Unrestricted
Equity in Pooled Cash $ 8 ,636,244 $ 5,589,816 $ -
Accounts Receivable (Net) 3 98,037 186,455 -
Due from Other Governments - - -
Inventories 6 76,984 - -
Restricted
Restricted Equity in Pooled Cash - - 14,196,980
Restricted Accounts Receivable (Net) - - 36,469
Total Current Assets 9 ,711,265 5,776,271 14,233,449
Noncurrent Assets
Restricted
Special Assessments Receivable (Net) - - 1,272,191
Capital Assets 127,161,364 31,947,131 -
Less Accumulated Depreciation (51,584,017) ( 11,444,082) -
Total Capital Assets, Net of Depreciation 7 5,577,347 20,503,049 -
Total Noncurrent Assets 7 5,577,347 20,503,049 1,272,191
Total Assets 8 5,288,612 26,279,320 15,505,640
DEFERRED OUTFLOWS OF RESOURCES
Other Post-Employment Benefit Obligation 1 99,957 56,310 -
Pension Benefits 3 06,459 89,581 -
Deferred Charge on Refunding - - -
Total Deferred Outflows of Resources 5 06,416 145,891 -
LIABILITIES
Current Liabilities
Payable from Unrestricted Assets
Accounts Payable 8 72,172 99,064 -
Accrued Interest Payable 1 11,301 - -
Escrow Deposits 1 73,798 - -
Due to Other Funds - - -
Unearned Revenue 2 45,640 - -
Current Portion of Compensated Absences 1 50,181 49,932 -
Current Portion of Bonds/Notes Payable 9 43,404 - -
Total Current Liabilities 2 ,496,496 148,996 -
Noncurrent Liabilities
Payable from Unrestricted Assets
Compensated Absences 1 08,806 36,175 -
Other Post-Employment Benefit Obligation 5 ,889,060 1,740,443 -
Net Pension Liability 1 ,749,453 508,104 -
Bonds/Notes Payable 3 0,988,965 - -
Total Noncurrent Liabilities 3 8,736,284 2,284,722 -
Total Liabilities 4 1,232,780 2,433,718 -
DEFERRED INFLOWS OF RESOURCES
Pension Benefits 2 02,581 59,205 -
Other Post-Employment Benefit Obligation 1,600 450 -
Bond Refundings - - -
Unavailable Water and Sewer Assessments - - 1,272,191
Total Deferred Inflows of Resources 2 04,181 59,655 1,272,191
NET POSITION
Net Investment in Capital Assets 4 3,644,978 20,503,049 -
Amounts Restricted for:
Debt Service - - -
Unrestricted Amounts (Deficit) 7 13,089 3,428,789 14,233,449
Total Net Position $ 44,358,067 $ 23,931,838 $ 14,233,449
The accompanying notes to the basic financial statements are an integral part of this statement.
-40-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
ENTERPRISE FUNDS
JUNE 30, 2020
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ - $ 14,226,060 $ 4 2,500 $ 790,189 $ 15,058,749
- 584,492 2 2,475 73,504 680,471
- - 5 9,601 13,130 72,731
- 676,984 3 4,015 2,764 713,763
2,031,867 16,228,847 - - 16,228,847
- 36,469 - - 36,469
2,031,867 31,752,852 1 58,591 879,587 32,791,030
11,155,721 12,427,912 - - 12,427,912
- 159,108,495 23,571,256 9,332,743 192,012,494
- (63,028,099) (5,548,136) ( 2,096,760) ( 70,672,995)
- 96,080,396 18,023,120 7,235,983 121,339,499
11,155,721 108,508,308 18,023,120 7,235,983 133,767,411
13,187,588 140,261,160 18,181,711 8,115,570 166,558,441
- 256,267 2 ,392 9,298 267,957
- 396,040 1 2,508 35,715 444,263
- - 7 ,225 1,028 8,253
- 652,307 2 2,125 46,041 720,473
- 971,236 1 1,586 57,754 1,040,576
- 111,301 2 1,424 8,317 141,042
- 173,798 1 7,100 - 190,898
- - 1,104,599 693,566 1,798,165
- 245,640 - 3,354 248,994
- 200,113 1 2,505 27,962 240,580
- 943,404 1 00,891 60,227 1,104,522
- 2,645,492 1,268,105 851,180 4,764,777
- 144,981 9 ,060 20,259 174,300
- 7,629,503 2 79,750 318,300 8,227,553
- 2,257,557 6 9,682 196,427 2,523,666
- 30,988,965 1,589,912 724,851 33,303,728
- 41,021,006 1,948,404 1,259,837 44,229,247
- 43,666,498 3,216,509 2,111,017 48,994,024
- 261,786 8 ,141 23,557 293,484
- 2 ,050 19 7 4 2,143
- - 462 2,460 2,922
11,150,270 12,422,461 - - 12,422,461
11,150,270 12,686,297 8 ,622 26,091 12,721,010
- 64,148,027 16,339,542 6,451,933 86,939,502
2,037,318 2,037,318 - - 2,037,318
- 18,375,327 (1,360,837) (427,430) 16,587,060
$ 2,037,318 $ 84,560,672 $ 14,978,705 $ 6,024,503 $ 105,563,880
The accompanying notes to the basic financial statements are an integral part of this statement.
-41-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2020
SANITARY DISTRICT
SEWER WATER RESTRICTED
OPERATIONS OPERATIONS FUND
OPERATING REVENUES
Charges for Services $ 6,232,603 $ 2,659,386 $ 4,867,981
Intergovernmental 90,000 - 1,899,951
Material Sales - 21,735 -
Miscellaneous Revenues 84,043 147,923 -
Total Operating Revenues 6,406,646 2,829,044 6,767,932
OPERATING EXPENSES
Cost of Sales and Services
Collection 3,147,022 - -
Distribution - 367,199 -
Treatment 1,389,408 1,270,047 -
Shop 177,571 78,374 -
Airport - - -
Recreation - - -
Total Cost of Sales and Services 4,714,001 1,715,620 -
Administration and Inspection 1,104,183 562,164 -
Other Post-Employment Benefit Contributions 111,898 31,187 -
Pension Liability Adjustment 46,692 13,651 -
Depreciation 2,268,567 678,443 -
Total Operating Expenses 8,245,341 3,001,065 -
Operating Income (Loss) (1,838,695) ( 172,021) 6,767,932
NON-OPERATING REVENUES (EXPENSES)
Investment Income 106,037 104,434 256,471
Interest Expense (356,131) - -
Gain (Loss) on Disposal of Capital Assets 17,876 - -
Total Non-Operating Revenues (Expenses) (232,218) 104,434 256,471
Income (Loss) Before Contributions and Transfers (2,070,913) ( 67,587) 7,024,403
Capital Contributions, Fees and Grants 759,434 1,214,907 -
TRANSFERS
Transfers In 1,059,710 - -
Transfers Out (5,000) (5,000) (1,051,067)
Net Transfers In (Out) 1,054,710 (5,000) (1,051,067)
Change in Net Position (256,769) 1,142,320 5,973,336
Total Net Position - Beginning of Year 44,614,836 22,789,518 8,260,113
Total Net Position - End of Year $ 44,358,067 $ 23,931,838 $ 14,233,449
The accompanying notes to the basic financial statements are an integral part of this statement.
-42-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2020
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ 113,112 $ 13,873,082 $ 24,130 $ 938,363 $ 14,835,575
551,599 2,541,550 95,052 10,447 2,647,049
- 21,735 170,665 43,001 235,401
- 231,966 414,194 26,269 672,429
664,711 16,668,333 704,041 1,018,080 18,390,454
- 3,147,022 - - 3,147,022
- 367,199 - - 367,199
- 2,659,455 - - 2,659,455
- 255,945 - - 255,945
- - 442,729 - 442,729
- - - 1,031,804 1,031,804
- 6,429,621 442,729 1,031,804 7,904,154
- 1,666,347 - - 1,666,347
- 143,085 1,321 5,060 149,466
- 60,343 1,847 5,319 67,509
- 2,947,010 431,254 154,221 3,532,485
- 11,246,406 877,151 1,196,404 13,319,961
664,711 5,421,927 (173,110) (178,324) 5,070,493
121,810 588,752 374 - 589,126
- ( 356,131) (91,054) (24,709) (471,894)
- 17,876 - (3,960) 13,916
121,810 250,497 (90,680) (28,669) 131,148
786,521 5,672,424 (263,790) (206,993) 5,201,641
- 1,974,341 - - 1,974,341
1,051,067 2,110,777 60,963 98,116 2,269,856
(1,059,710) ( 2,120,777) - - (2,120,777)
(8,643) ( 10,000) 60,963 98,116 149,079
777,878 7,636,765 (202,827) (108,877) 7,325,061
1,259,440 76,923,907 15,181,532 6,133,380 98,238,819
$ 2,037,318 $ 84,560,672 $ 14,978,705 $ 6,024,503 $ 105,563,880
The accompanying notes to the basic financial statements are an integral part of this statement.
-43-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2020
SANITARY DISTRICT
SEWER WATER RESTRICTED
OPERATIONS OPERATIONS FUND
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 6,377,137 $ 2,635,421 $ 4,838,109
Receipts from other operating sources 174,043 169,658 1,899,951
Receipts from bond interest reimbursement - Build America Bond - - -
Payments to suppliers (2,402,336) (1,116,720) -
Payments to employees and on behalf of employees (3,811,434) (1,197,947) -
Net Cash Provided by Operating Activities 337,410 490,412 6,738,060
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in from other funds 1,059,710 - -
Receipts from interfund loans - - -
Transfers to other funds (5,000) (5,000) (1,051,067)
Principal paid on interfund loans - - -
Net Cash Provided (Used) by Noncapital Financing Activities 1,054,710 (5,000) (1,051,067)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from the disposition of capital assets 17,876 - -
Principal paid on capital debt (934,063) - -
Proceeds from the sale of bonds - - -
Premium on the sale of bonds - - -
Receipts from state loan 3,446,676 - -
Interest paid on capital debt (341,256) - -
Acquisition and construction of capital assets (4,005,986) (740,270) -
Net Cash (Used) by Capital and Related Financing Activities (1,816,753) (740,270) -
CASH FLOWS FROM INVESTING ACTIVITIES
Net Cash Provided by Investing Activities - Investment Income 106,037 104,434 256,471
Net Increase (Decrease) in Cash and Cash Equivalents (318,596) (150,424) 5,943,464
Balances - Beginning of the year 8,954,840 5,740,240 8,253,516
Balances - End of the year $ 8,636,244 $ 5,589,816 $ 14,196,980
Reconciliation of operating income (loss) to net cash
provided by operating activities
Operating income (loss) $ (1,838,695) $ (172,021) $ 6,767,932
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation 2,268,567 678,443 -
Effect of changes in operating assets and liabilities:
Accounts receivable, net (63,936) (23,965) (29,872)
Special assessments receivable, net - - (208,536)
Operating grants receivable - - -
Build America Bonds Interest receivable - - -
Inventories and Prepaid Expenses 57,838 - -
Vendor accounts payable (461,748) (34,444) -
Compensated absences 8,324 (2,439) -
Other Post-Employment Benefit Obligation 111,898 31,187 -
Pension Obligation 46,692 13,651 -
Escrow deposits payable 6,957 - -
Deferred revenue collected in advance 201,513 - 208,536
Net Cash Provided by Operating Activities $ 337,410 $ 490,412 $ 6,738,060
Noncash investing, capital and financing activities:
Donation of capital assets (infrastructure) by developers $ 759,434 $ 1,214,907 $ -
The accompanying notes to the basic financial statements are an integral part of this statement.
-44-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2020
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ 107,661 $ 13,958,328 $ 16,335 $ 908,152 $ 14,882,815
551,599 2,795,251 790,995 148,587 3,734,833
- - 504 2,682 3,186
- (3,519,056) (357,473) (668,810) (4,545,339)
- (5,009,381) (152,101) (372,396) (5,533,878)
659,260 8,225,142 298,260 18,215 8,541,617
1,051,067 2,110,777 60,963 98,116 2,269,856
- - - 693,566 693,566
(1,059,710) (2,120,777) - - (2,120,777)
- - (53,204) (625,313) (678,517)
(8,643) (10,000) 7,759 166,369 164,128
- 17,876 - - 17,876
- (934,063) (217,511) (699,827) (1,851,401)
- - 92,167 490,649 582,816
- - 18,378 97,832 116,210
- 3,446,676 - - 3,446,676
- (341,256) (99,835) (39,834) (480,925)
- (4,746,256) (65,623) (45,395) (4,857,274)
- (2,557,023) (272,424) (196,575) (3,026,022)
121,810 588,752 374 - 589,126
772,427 6,246,871 33,969 (11,991) 6,268,849
1,259,440 24,208,036 8,531 802,180 25,018,747
$ 2,031,867 $ 30,454,907 $ 42,500 $ 790,189 $ 31,287,596
$ 664,711 $ 5,421,927 $ (173,110) $ (178,324) $ 5,070,493
- 2,947,010 431,254 154,221 3,532,485
- (117,773) (7,995) (29,776) (155,544)
165,186 (43,350) - - (43,350)
- - 111,084 68,870 179,954
- - 504 2,682 3,186
- 57,838 11,915 1,755 71,508
- (496,192) (81,027) (13,679) (590,898)
- 5,885 2,267 2,522 10,674
- 143,085 1,321 5,060 149,466
- 60,343 1,847 5,319 67,509
- 6,957 200 - 7,157
(170,637) 239,412 - (435) 238,977
$ 659,260 $ 8,225,142 $ 298,260 $ 18,215 $ 8,541,617
$ - $ 1,974,341 $ - $ - $ 1,974,341
The accompanying notes to the basic financial statements are an integral part of this statement.
-45-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF FIDUCIARY NET POSITION
PRIVATE PURPOSE TRUST, OTHER POST-EMPLOYMENT BENEFIT TRUST, AND AGENCY FUNDS
JUNE 30, 2020
PRIVATE
PURPOSE
TRUST FUND OTHER
TAX SALE POST-EMPLOYMENT AGENCY
DEPOSITS BENEFIT TRUST FUND FUNDS
ASSETS
Cash and Cash Equivalents $ 52,788 $ 1 ,505,273 $ 9 09,586
Investments, at Fair Value
Debt Securities - 2 ,121,318 -
Fixed Income Fund - 3 93,502 -
Mutual and Global Funds - 4 ,394,083 -
International - 1 ,267,194 -
Total Investments - 8 ,176,097 -
Total Assets 52,788 9 ,681,370 $ 9 09,586
LIABILITIES
Accrued Expenses - 9 ,005 $ -
Due to Other Governments - 1 61,760 2 89,794
Deposits and Escrows - - 6 19,792
Total Liabilities - 1 70,765 $ 9 09,586
NET POSITION
Held in Trust $ 52,788
Restricted for Other Post-Employment Benefits $ 9 ,510,605
The accompanying notes to the basic financial statements are an integral part of this statement.
-46-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE PURPOSE TRUST AND OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2020
PRIVATE
PURPOSE
TRUST FUND
TAX SALE
DEPOSITS
ADDITIONS
Total Additions - Tax Sale Collections in Excess of Tax Due $ 6,484
DEDUCTIONS
Distributions to Property Holders 29,809
Change in Fiduciary Net Position ( 23,325)
NET POSITION HELD IN TRUST
Net Position-Beginning of Year 76,113
Net Position-End of Year $ 52,788
OTHER
POST-EMPLOYMENT
BENEFIT TRUST FUND
ADDITIONS
CONTRIBUTIONS
Employers $ 5,385,607
Members 838,500
Total Contributions 6,224,107
Investment Earnings
Interest 158,022
Net Decrease in the Fair Value of Investments ( 324)
Total Investment Gain 157,698
Less Investment Expenses ( 3,849)
Net Investment Gain 153,849
Total Additions 6,377,956
DEDUCTIONS
Claims Paid 4,407,208
Administrative Expenses 30,359
Total Deductions 4,437,567
Change in Fiduciary Net Position 1,940,389
NET POSITION RESTRICTED FOR OTHER POST-EMPLOYMENT BENEFITS
Net Position-Beginning of Year 7,570,216
Net Position-End of Year $ 9,510,605
The accompanying notes to the basic financial statements are an integral part of this statement.
-47-

QUEEN ANNE'S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
INDEX
Note
1 Summary of Significant Accounting Policies 49-60
2 Budgets and Budgetary Accounting 60-61
3 Cash, Investments and Investment Income 62-67
4 Accounts Receivable 68-69
5 Unearned Revenue 70
6 Capital Assets 71-75
7 Interfund Receivables and Payables 76
8 Interfund Transfers 77
9 Noncurrent Liabilities 78-87
10 Restricted Assets and Liabilities
and Fund Balances 88-91
11 Risk Management 91-92
12 Retirement Plans 92-101
13 Deferred Compensation Plan 101
14 Other Post-Employment Benefits 101-116
15 Volunteer Fireman Pension Plan Length of Service Award Program 116-118
16 Deficit Equity Balances 119
17 Commitments and Contingencies 119-120
18 Joint Venture 120-121
19 Pollution Remediation Obligations 121-122
-48-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
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
Component units are legally separate entities that are included in the County’s reporting entity because of the significance of their
operating or financial relationships with the County. The criteria for including organizations as component units within the
County’s reporting entity include whether:
 the organization is legally separate
 the County Commissioners appoint a voting majority of the organization’s board
 the County Commissioners have the ability to impose their will on the organization
 the organization has the potential to impose a financial benefit/burden on the County
 the organization is fiscally dependent on the County
Based on the application of these criteria, the following organizations are considered component units of Queen Anne’s County
Government. Their financial data is discretely presented in separate columns in the government-wide financial statements. Both
discretely presented component units have a June 30 year end.
The Board of Education of Queen Anne’s County is a five-member body responsible for the operation of Queen Anne’s County
Schools. Beginning with the November 2008 election, the members were elected by the County voters. The Board of Education
is a component unit of Queen Anne’s County, Maryland by virtue of the Board’s fiscal dependency on the County through the
County’s responsibility for levying taxes, issuing debt, and its budgetary control over the Board of Education.
The Queen Anne’s County Free Library is a component unit of the Queen Anne’s County Government by virtue of the
Library’s fiscal dependency on the County. The County levies taxes and approves the Library’s budget. The Library Board of
Trustees governs the Library. Vacancies on the Board of Trustees are filled by vote of the remaining members of that Board.
-49-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. REPORTING ENTITY (CONTINUED)
Discretely Presented Component Units (continued)
Complete financial statements of the discretely presented component units can be obtained from their respective
administrative offices listed below:
Board of Education of Queen Anne’s County
Queen Anne’s County Free Library
202 Chesterfield Avenue 121 S. Commerce Street
Centreville, MD 21617 Centreville, MD 21617
Joint Venture
The operation of the Midshore Regional Landfill is considered a joint venture of the County. Disclosure of the County’s
participation in this joint venture is presented in Note 18.
Complete financial statements can be obtained at the joint ventures’ administrative office listed below:
Maryland Environmental Service
259 Najoles Road
Millersville, Maryland 21108
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Government-Wide Financial Statements – The government-wide financial statements report information on all of the non-
fiduciary activities of the Primary Government and its component units. Since, by definition, assets of fiduciary funds are held for
the benefit of a third party (other local governments, private parties, etc.) and cannot be used to address activities or obligations of
the County, these funds are not incorporated into the government-wide statements.
Interfund activity within the primary government’s governmental activities and business-type activities has been
eliminated from the government-wide statements. Interfund services provided and used are not eliminated in the process
of consolidation. Residual balances between the governmental and business-type categories are presented on the
Statement of Net Position as “Internal balances”.
Governmental activities of the Primary Government, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
Statement of Net Position – This statement is designed to display the financial position of the reporting entity as of year-end.
Governments report all capital assets, including infrastructure, in the government-wide Statement of Net Position and report
depreciation expense, the cost of “using up” capital assets, in the Statement of Activities. Net position is divided into three
categories: 1) net investment in capital assets; 2) restricted amounts; and 3) unrestricted amounts. Net Investment in capital assets
consists of capital assets, net of accumulated depreciation, and reduced by the outstanding balances of any bonds, mortgages,
notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those capital assets. Restricted
amounts are assets for which constraints are placed due to restrictions that are either (1) externally imposed by creditors, grantors,
contributors, or laws and regulations of the government, or (2) imposed by law through constitutional provisions or enabling
legislation. Unrestricted amounts consist of net assets that do not meet the definition of restricted or invested in capital assets.
-50-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)
Statement of Activities – This statement demonstrates the degree to which the direct expenses of a given function for the fiscal
year are offset by program revenues. Therefore, this statement reflects both the gross and net costs per functional category (general
government; public safety; public works; health; social services; education; library; conservation of natural resources; and
economic/community development) that are otherwise supported by general revenues. Direct expenses (including depreciation)
are those that are clearly identifiable with a specific function. Program revenues include: 1) charges to customers or applicants
who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function. The operating grants
and contributions column includes operating-specific and discretionary (either operating or capital) grants, while the capital grants
and contributions column reflects capital-specific grants. Taxes and other items not properly included among program revenues
are reported as general revenues. The County does not allocate indirect expenses.
Fund Financial Statements – Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial
statements.
In the fund financial statements, financial transactions and accounts of the County are organized on the basis of funds, each of
which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-
balancing accounts that comprise assets, liabilities, fund balance/net assets, revenues, and expenditures/expenses.
Governmental Fund Budget-to-Actual Comparison Statements – Demonstrating compliance with the legally adopted budget
is an important component of government’s accountability to the public. The County provides a budget-to-actual comparison of
the General Fund as part of the required supplementary information section located after the Notes to the basic financial
statements. A budget-to-actual comparison is provided for the General Fund on a departmental level as required supplementary
information, and for all non-major governmental funds with legally adopted budgets in the supplementary information section.
The County and many other governments revise their original budgets over the course of the year for a variety of reasons; the
County’s amended budget is reflected in a separate column in the budget-to-actual comparison statements. Variances are
calculated based on final budgets.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
Measurement Focus and Basis of Accounting
Full Accrual Basis Financial Statements – The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes
are recognized as revenue in the year in which they are levied. Grants and similar items are recognized as revenues as soon as all
eligibility requirements imposed by the provider have been met. Capital assets and related depreciation are recorded in these
statements, as well as debt, accrued compensated absences, other post-employment benefits, and other accruals.
Modified Accrual Basis Financial Statements – Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting.
-51-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
Revenues are recorded as soon as they are susceptible to accrual (i.e., when they are both measurable and available). Revenues are
considered to be available when they are collectible within the current period, or soon enough thereafter to pay liabilities of the
current period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures are recorded only when payment has matured and is due. Similarly, expenditures related to claims,
judgments, compensated absences, and other post-employment benefits are recorded only to the extent that they are expected to be
liquidated with expendable available financial resources. Capital assets, and related depreciation, as well as long-term liabilities
are not recorded in these statements.
In applying the susceptible to accrual concept to income taxes (distributed by the State), property taxes, and inter-governmental
revenues other than grants, the County defines “available” as received within 60 days after year-end.
In the State of Maryland, the State has assumed responsibility for the collection of all income taxes and for distributing those
collections to the respective counties. The counties set their individual tax rates within limits provided by State law. However,
collection and pursuit of delinquent taxes are the responsibility of the State. The County records estimated receivables relating to
income taxes when the underlying income is earned. Amounts not received within 60 days are reported as deferred inflows of
resources. At year-end, deferred revenue relating to income taxes primarily includes the final fiscal year distribution (which is
normally received in September after the fiscal year-end) and amounts related to late filers, delinquent returns and audits, and
unallocated withholding, all of which are not received within the County’s availability period. Most deferred inflows are expected
to be received from the State within the next fiscal year; however, collections related to delinquent returns and audits as well as
unallocated withholding may not be remitted to the County for several years.
In applying the susceptible to accrual concept to operating and capital grants, which are classified with intergovernmental revenues
in the fund financial statements, the County records receivables when the applicable eligibility requirements including time
requirements are met. Related revenues are recognized to the extent that cash is expected to be received within one year of year-
end. Resources received before the eligibility requirements are met are reported as unearned revenue.
Licenses and permits, charges for services, and miscellaneous revenues (except earnings on investments) are generally recorded as
revenues when received in cash during the year. At year-end, receivables are recorded for significant amounts due. If such
amounts are received in cash after year-end within the County’s 60-day availability period, they are recognized as revenue. Benefit
assessment receivables not billed at year end are reported as deferred inflows of resources.
Fiduciary Funds – The County’s trust fund financial statements are reported using the economic resources measurement focus
and accrual basis of accounting, as is used by proprietary funds. Agency funds report only assets and liabilities; they do not report
changes in net position. Therefore, agency funds are reported using the accrual basis of accounting to recognize receivables and
payables. Activity during the year is accounted for as additions to and deductions from asset and liability accounts (for Agency
Funds) and Net Position (for Private Purpose and Other Post-Employment Benefit Trust Funds). Since fiduciary funds are, by
their very nature, independent of the County, they are omitted from all government-wide statements.
Financial Statement Presentation - The County reports the following major governmental and proprietary funds, as well as
fiduciary funds.
-52-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
General Fund – This fund is the general operating fund of the County. It is used to account for all financial resources
except those required or recommended, by GAAP, to be accounted for in another fund.
Capital Projects Funds –
General Capital Projects - This fund accounts for financial resources to be used for the acquisition or
construction of major capital facilities, as well as other large multi-year projects that relate to capital assets, that
are financed from general governmental resources.
Roads Capital Projects - This fund accounts for financial resources to be used for the construction of County
Road infrastructure, as well as other large multi-year projects that relate to capital assets, that are financed from
grants received from State and Federal Governments, Highway User Tax funds, and general governmental
resources.
Non-Major Governmental Funds – There are nineteen non-major governmental funds, which are used to account for
and report the proceeds of specific revenue sources. Included in the nineteen non-major governmental funds are sixteen
special revenue funds and three capital project funds.
Major Enterprise Funds - Enterprise Funds are used to account for those activities of the Primary Government that are
financed and operated in a manner similar to private business enterprises in that all costs and expenses, including
depreciation, are recovered primarily or partially through user charges. The Sanitary District Funds are intended to be
self-supporting as a whole, while the Airport is intended to be only partially self-supporting. The County reports the
following major enterprise funds:
Sanitary District -
Sewer Operations - This fund is used to account for the operation of the sewer system serving
approximately 8,264 customers.
Water Operations - This fund is used to account for the operation of the water supply system
serving approximately 4,671 customers.
Restricted Fund - This fund is used to account for the proceeds of sewer and water capacity charges
(one-time allocation fees) and is used to fund capital and debt service expenses.
Debt Service Fund - This fund is used to account for the collection of special benefit assessments,
and financial resources from other sources, to fund debt associated with construction of water and
sewer facilities in accordance with debt covenants.
Bay Bridge Airport – This fund is used to account for the operation of the County’s airport that serves small,
private aircraft.
-53-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
Non-Major Enterprise Funds – Non-major Enterprise Funds account for activities which are commercial in nature and
are primarily or partially intended to be self-supporting. The County has two non-major enterprise funds, neither of
which is meant to be fully self-supporting. These funds include the Golf Course and Public Landings and Marinas.
Fiduciary Funds – Fiduciary Funds are used to report assets held in a trustee or agency capacity for entities other than
the County. The County reports the following fiduciary fund types:
Private-Purpose Trust Fund – This fund accounts for an arrangement under which monies received at tax sale,
in excess of taxes due, are legally held in trust for property owners who have not been located within a legally-
defined time frame.
Other Post-Employment Benefit Trust Fund– This fund accounts for the funding of retiree benefit plans of
Queen Anne’s County and other participating agencies, which are the Queen Anne’s County Board of
Education and Queen Anne’s County Free Library. Other agencies and political subdivisions have the
right to participate in this Trust Fund also, as an investment vehicle for their Other Post-Employment
Benefit Plan through the pooling of investment resources.
Agency Funds - These funds are used to account for assets held in a purely custodial capacity where the County
receives, temporarily invests, and remits such resources to individuals, private organizations or other
governments. These monies include escrow deposits for tax ditches, zoning deposits, state and town tax
collections, motor vehicle administration deposits, and abandoned property.
Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year’s
presentation.
The financial statements of the County have been prepared in conformity with generally accepted accounting principles
(GAAP) as applied to local government units. The Governmental Accounting Standards Board (GASB) is the accepted
standard-setting body for establishing governmental accounting and financial principles. The most significant of the
County’s accounting policies are described below.
In the process of aggregating data for the Statement of Net Position and the Statement of Activities, some amounts reported as
interfund activity and balances in the funds should be eliminated or reclassified. As a general rule, the effect of interfund activity
has been eliminated from the government-wide financial statements. The effect of interfund services provided and used between
functions has not been eliminated in the Statement of Activities, since to do so would distort the direct costs and program revenues
reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal
ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services.
Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
-54-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
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 recorded at cost and determined by the first-in, first-out
method. Inventories held for resale are reported at lower of cost or market and also determined by the first-in, first-
out method. For budgetary purposes, the cost is recorded as an expenditure at the time individual inventory items
are purchased (purchase method). The consumption method is used for financial reporting purposes whereby
expense is recognized as the items are used (consumed). Reported inventories are equally offset by a fund balance
reserve. Inventories in the Proprietary Funds are also recorded using the consumption method.
Prepaid items are payments made to vendors for services that will benefit periods beyond the end of the fiscal year.
4) Capital Assets
Capital assets, which include property, plant, equipment, intangibles, and infrastructure assets (e.g. roads, bridges,
curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and similar items) are reported in the
applicable governmental or business-type activities columns in the government-wide financial statements. The
County defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life
in excess of one year. Such assets are valued at cost where historical records are available and at estimated historical
cost where no historical records exist. Donated capital assets, donated works of art and similar items, and capital
assets received in a service concession arrangement are recorded at acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value or functionality of the asset, or materially
extend asset lives, are not capitalized.
Land and other inexhaustible assets such as intangible property easements and other land usage rights are capitalized
but not depreciated, as these assets are expected to have indefinite useful lives.
-55-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
4) Capital Assets (continued)
Major outlays for capital assets and improvements are capitalized as the projects are constructed. Interest is
capitalized on proprietary fund assets acquired with tax-exempt debt. The amount of interest to be capitalized is
calculated by offsetting interest expense, incurred from the date of the borrowing until completion of the project,
with interest earned on invested proceeds over the same period. Capital projects that are under construction and not
yet ready for their intended use at year-end are classified as “construction in progress” (CIP).
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Assets Years
Buildings and structures 20 - 50
Improvements other than buildings 15 - 50
Infrastructure 20 - 50
Machinery and equipment 5 - 20
Office furniture, fixtures and equipment 5 - 15
Vehicles 7 – 10
5) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of
net position that applies to a future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then.
In addition to liabilities, the statement of financial position will report a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net
position that applies to a future period(s) and so will not be recognized as an inflow of resources until that time.
6) Other Post-Employment Benefit Obligation (OPEB)
Primary Government – The Queen Anne’s County post-employment benefit plan provides medical insurance
benefits to retirees and their eligible dependents. The Plan’s financial information is prepared based on full accrual
accounting. Expenses are recognized on the accrual basis as retirees’ insurance costs are incurred. Typically, OPEB
liabilities are liquidated in the following governmental funds: the General Fund, Department of Aging, Housing and
Community Services, and Community Partnerships for Children. OPEB liabilities are also liquidated in the
following enterprise funds: Sanitary Sewer, Sanitary Water, Bay Bridge Airport, Golf Course, and Public Landings
and Marinas. Additional details regarding other post-employment benefits can be found in Notes 9 and 14.
In both the government-wide and enterprise funds, liability for other post-employment benefits is adjusted at the end
of the fiscal year. For the year ended June 30, 2020, the net other post-employment benefit obligation amounted to
$53,108,045, including both governmental ($44,880,492) and business-type activities ($8,227,553).
Component Unit - Board of Education – For the year ended June 30, 2020, the net other post-employment benefit
obligation for the Board of Education amounted to $224,997,744.
Component Unit – Free Library – For the year ended June 30, 2020, the net other post-employment benefit
obligation for the Library amounted to $835,814.
-56-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
7) Net Pension Liability
Primary Government – The Queen Anne’s County government participates in the Maryland State Retirement and
Pension Systems. Beginning in fiscal year 2015, the County was required to report the net pension liability
associated with this system. Typically, pension liabilities are liquidated in the following governmental funds: the
General Fund, Department of Aging, Housing and Community Services, and Community Partnerships for Children.
Pension liabilities are also liquidated in the following enterprise funds: Sanitary Sewer, Sanitary Water, Bay Bridge
Airport, Golf Course, and Public Landings and Marinas. Additional details regarding retirement benefits can be
found in Notes 9 and 12. For the year ended June 30, 2020, the net pension liability amounted to $29,483,317,
including both governmental ($26,959,651) and business-type activities ($2,523,666).
Component Unit - Board of Education – For the year ended June 30, 2020, the net pension liability for the Board
of Education amounted to $5,209,719.
8) Volunteer Fireman Pension Plan Length of Service Award Program (LOSAP)
Primary Government – The LOSAP is a single-employer defined benefit length of service award program
that covers all volunteer members of the County’s Fire and EMS Commission. The County began
recording the net LOSAP liability associated with this benefit in fiscal year 2019 with the implementation
of Governmental Accounting Standards Board’s Statement No. 73, Accounting and Financial Reporting for
Pensions and Related Assets That are Not Within the Scope of GASB Statement 68. Additional details
regarding LOSAP benefits can be found in Notes 9 and 15. For the year ended June 30, 2020, the net LOSAP
liability amounted to $8,048,034, entirely in governmental activities.
9) 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 $3,348,071
at June 30, 2020, including both governmental ($2,933,191) and business-type activities ($414,880).
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, 2020 amounted
to $1,158,057. Because payment of sick leave is contingent upon employees’ future illness or retirement, the Board
of Education expects its commitment to provide sick leave to be met during the normal course of activities over the
working lives of its present employees. Any accumulated unused sick leave at retirement will ultimately be taken
into consideration and paid through retirement benefits by the State of Maryland.
10) Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term
debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-
type activities, or proprietary fund type statements of net assets. Bond premiums are deferred and amortized over
the life of the bonds using the bonds outstanding method. Bonds payable in the proprietary fund financial
statements and noncurrent liabilities in the government-wide financial statements are reported net of the applicable
bond premium or discount. Bond issuance costs are reported in the period in which they have been incurred.
-57-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
10) Long-Term Obligations (continued)
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond
issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as expenditures. When debt is refunded in an advance refunding, payments to the Bond Refunding Agent
and associated bond issuance costs are reported as other financing uses. When debt is refunded in a current
refunding, the principal on refunded debt is reported as other financing uses.
11) Net Position/Fund Equity
In the government-wide financial statements, the County has reported an unrestricted net deficit of $32,222,407.
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, 2020, the County has reported outstanding general
obligation debt related to assets held by the Board of Education amounting to $55,846,036 (of which $52,760,851
has been spent and the remaining $3,085,185 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
$23,623,629.
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, 2020, this portion of net position was restricted for a particular purpose
either by external parties; by provision of the County Charter; or by enabling legislation. Net position restricted by
enabling legislation represents legislative restrictions that a party external to the government can compel the
government to honor. For the County, such amounts represent primarily accumulated net position attributed to
revenue streams that are restricted for specified purposes in the County Code. This generally includes the Rainy
Day Fund, Capital Projects Fund impact fee collections and developer exactions on hand for outside entities;
restricted amount for special revenue funds; and ending restricted net assets of the Sanitary District and other
enterprise funds. Such amounts, which are restricted in the government-wide Statement of Net Position, are as
follows at year-end:
Restricted Amounts
Governmental activities $ 19,844,181
Business-type activities:
Debt Service 2,037,318
Total Restricted Amounts $ 21,881,499
Note that unspent bond proceeds of $9,989,150 are included in restricted fund balance for the General
Capital Projects Fund. At the Government-Wide level, the unspent bond proceeds are offset by the
liability.
-58-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
11) Net Position/Fund Equity (continued)
In the fund financial statements, fund balances of governmental funds are classified as follows:
Nonspendable – amounts that cannot be spent either because they are not in a spendable form or because they are
legally or contractually required to be maintained intact. Nonspendable fund balances for the County include
inventory and prepaid items.
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.
12) 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 fiscal year 2020, the County did not
hold a public auction for delinquent taxes due to guidelines regarding the COVID-19 pandemic.
For small businesses that meet certain criteria and also principal residences, an installment plan is offered whereby
total tax is paid in two equal installments. The first installment is due by September 30. Beginning October 1, a 1%
penalty is charged on the first day of each month that the installment remains unpaid. This 1% penalty is based on
the amount of the first installment only. The second installment is due by December 31. Beginning January 1, the
1% penalty would then include all outstanding balances. The County accepts partial payments.
For non-principal residences, payment is due in full by September 30. Beginning October 1, a penalty is charged
for each month that taxes remain unpaid. For new construction, completed and assessed between July 1 and
December 31, a supplementary tax is levied equal to half of the full-year levy. Payment in full is due by March 31.
Beginning April 1, a penalty is charged for each month that taxes remain outstanding.
-59-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
12) Property Tax (continued)
Real and personal property taxes are levied at rates enacted by the County Commissioners in the annual
budget on the assessed value as determined by the Maryland Department of Assessments and Taxation. The
rates of levy cannot exceed the constant yield rate furnished by the Maryland Department of Assessments
and Taxation without public notice and only after public hearings. The County tax rate for the fiscal year ended
June 30, 2020 was $0.8471 per $100 of assessed value.
E. NEW ACCOUNTING PRONOUNCEMENTS
GASB Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance, was effective
for periods beginning after June 15, 2018, and later. This primary objective of this Statement is to provide
temporary relief to governments and other stakeholders in light of the COVID-19 pandemic by postponing the
effective dates of certain provisions in Statements and Implementation Guides that first became effective or are
scheduled to become effective for periods beginning after June 15, 2018, and later.
The County will be analyzing the effects of these pronouncements and plans to adopt them as applicable by their
effective date.
GASB Statement No. 84, Fiduciary Activities and GASB Statement No. 90, Majority Equity Interests.
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING
Pursuant to the Code of Public Local Laws of Queen Anne's County, the County Commissioners adopt an annual
operating budget and real property tax rate prior to July 1 each year. This action, taken after public hearings, provides
the spending authority for the fiscal year beginning on July 1. Unexpended and unencumbered appropriation authority
expires the following June 30, except in the case of Capital Projects where appropriations lapse only upon completion or
cancellation of each project by the County Commissioners. The appropriated budgets are prepared at the fund, function,
and departmental level. Expenditures/expenses may not legally exceed appropriations, based on the level at which they
were adopted. For the General Fund, annual expenditure budgets are legally adopted at the departmental level. For all
other Governmental Funds, for which annual budgets are adopted, expenditure budgets are legally adopted at the fund
level.
-60-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING (CONTINUED)
During the fiscal year, the Commissioners may adopt supplemental appropriations. For the year ended June 30, 2020,
supplemental appropriations were as follows:
Original Final
Supplemental Appropriations Budget Budget Increase
General Fund - expenditures and transfers $ 144,373,465 $ 150,556,449 $ 6,182,984
Special Revenue Funds that adopt annual budgets
Non-Major Funds that adopt annual budgets -
Department of Aging - expenditures $ 2,973,502 $ 3,170,048 $ 196,546
Housing & Community Services - expenditures and transfers 1,710,869 1,893,912 183,043
Grants Fund - expenditures 586,412 4,100,675 3,514,263
Economic Development Incentive- expenditures - 258,063 258,063
BRIDGE Fund - transfers - 215,200 215,200
Community Partnerships for Children - expenditures 1,094,434 1,159,418 64,984
Agricultural Transfer - expenditures 250,000 1,000,000 750,000
Rural Legacy - expenditures - 2,029,259 2,029,259
Total Special Revenue Funds that adopt annual budgets $ 6,615,217 $ 13,826,575 $ 7,211,358
All final budgets are presented as amended. The County Administrator may approve budget amendments of $10,000 or
less throughout the year. Amendments greater than $10,000 require the approval of the County Commissioners.
Annual operating budgets are legally adopted for the General Fund (includes the Roads Board) and the following non-
major governmental funds: Department of Aging, Housing and Community Services, Grants Fund, Economic
Development Incentive, BRIDGE Fund, Community Partnerships for Children, Law Library, Inmate Welfare,
Agricultural Transfer, Rural Legacy, Dredging Special Assessments, Kent Narrows, School Impact Fees Capital
Projects, Fire Company Impact Fees Capital Projects, and Parks and Recreation Impact Fees Capital Projects.
Proprietary Fund budgets are adopted for management control only and include all enterprise funds. Budgets are
adopted using the same method of accounting as that used for Fund reporting purposes.
Budgets for the General Capital Projects Fund and the Roads Capital Projects Fund reflect multi-year appropriations at
the individual project level. Expenditures may not legally exceed appropriations at that level and appropriations lapse at
the completion or cancellation of individual projects. Since these capital projects funds do not adopt an annual budget
per project, a Statement of Revenues, Expenditures, and Changes in Fund Balances on a budget-to-actual basis is not
presented for these funds.
No General Fund departments exceeded their legally adopted expenditure budgets for the year ended June 30, 2020.
However, salary reversions are budgeted as a lump sum negative $1,124,856, but actual amounts are realized in the
individual departments and are not reported as a lump sum in the reversions activity.
-61-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME
A. DEPOSITS AND INVESTMENTS
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS
Deposits are maintained in a variety of financial institutions. Statutes authorize the County to invest in obligations of the
United States Government, Federal government agency obligations, secured time deposits in Maryland banks, bankers’
acceptances, the Maryland Local Government Investment Pool, money market mutual funds, commercial paper and
repurchase agreements secured by direct government or agency obligations.
At year-end, the County Primary Government had deposits of $53,500,167 with local banks (carrying value
$58,947,743). Of those balances, $501,009 was insured by federal depository insurance (FDIC). The uninsured balances
were fully collateralized by securities placed with the respective banks’ escrow agents and held in the County’s name.
Of these options, the County participates in the Maryland Local Government Investment Pool (MLGIP), which provides
all local government units of the state with a safe investment vehicle for short-term investment of funds. The State
Legislature created MLGIP with the passage of Article 95 Section 22G, of the Annotated Code of Maryland. PNC
Financial manages the MLGIP, under administrative control of the State Treasurer. A MLGIP Advisory Committee of
current participants reviews the activities of the Fund on a quarterly basis and provides suggestions to enhance the pool.
The MLGIP portfolio is managed in a manner consistent with the Securities and Exchange Commission’s Rule 2a-7 of
the Investment Company Act of 1940. Standard and Poors rates the MLGIP as AAAm. The fair value of the pool is the
same as the value of the pool shares. At June 30, 2020, the County had investments in MLGIP of $59,535,140, which
are recorded at cost, which approximates fair value.
As of June 30, 2020, the County’s investments (excluding investments held for retiree health benefits), for both custodial
and credit risk purposes, consisted solely of shares in the MLGIP. This investment is not deemed to have either risk and
is in conformity with the County’s policy relating to minimal credit risk of investments.
The majority of the Retiree Health Trust investments are invested in the Maryland Association of Counties Pooled OPEB
Trust (MACO Trust). The MACO Trust is administered by Davenport & Company LLC, and is a wholly-owned
instrumentality of its members. The following eleven members who are the active sole contributors to the Trust consist
of the following: Allegany, Queen Anne’s, Talbot County, City of Annapolis, College of Southern Maryland, Town of
Bel Air, Talbot County Board of Education, St. Mary’s County Metropolitan Commission, Harford Community College,
Harford County Public Library, and LaVale Sanitary Commission.
The assets of the Trust are managed by a Board of Trustees and consist of U.S. Treasury obligations, U.S. government
agencies, corporate and foreign bonds, municipal obligations, taxable fixed income securities, mutual funds, global
funds, and international equity securities.
Cash and cash equivalents for the MACO Trust include an investment in a money market mutual fund. At June 30, 2020,
the weighted average maturity (WAM) for the Trust’s money market mutual fund investment was 40 days. At June 30,
2020, the short-term rating of the money market mutual fund was AAAm by Standard & Poor’s.
The main objectives of the Trust’s investment policy are the protection of investment principal, maximizing investment
income through diversification while assuring financial liquidity. The policy allows for investment in U.S. and Non-U.S.
equities, corporate, government, or government agency bonds, non-U.S. bonds, Real Estate and Limited Partnerships.
-62-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS (CONTINUED)
The Trust categorizes its fair value measurements with the fair value hierarchy established by U.S. GAAP. The hierarchy
is based on the valuation inputs used to measure the fair value of the asset and gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to
unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
 Level 1 – Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets;
 Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets or identical assets
or liabilities in less active markets, such as dealer or broker markets; and
 Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant
value drivers are unobservable, such as pricing models, discounted cash flow models and similar techniques not
based on market, exchange, dealer or broker-traded transactions.
Transactions are recorded on the trade date. Realized gains and losses are determined using the identified cost method.
Any change in net unrealized gain or loss from the preceding period is reported in the statement of revenues, expenses
and changes in net position. Dividends are recorded on the ex-dividend date. Interest is recorded on the accrual basis.
Following is a description of the valuation methodologies used for assets measured at fair value.
Equity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Debt
securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is
used to value securities based on the securities' relationship to benchmark quoted prices.
The Trust has the following recurring fair value measurements as of June 30, 2020, of which Queen Anne’s County’s
portion was 17.9% of the total:
Level 1 Level 2 Level 3 June 30, 2020
Investments by fair value level:
Debt Securities
U.S. Treasury Obligations $ - $ 1,425,655 $ - $ 1,425,655
U.S. Governmental Agencies - 2,821,704 - 2,821,704
Corporate & Foreign Bonds - 7,027,064 - 7,027,064
Municipal Obligations - 595,419 - 595,419
Equity and Mutual Fund Investments
Taxable Fixed Income Funds - 2,201,844 - 2,201,844
Mutual Funds 21,574,812 - - 21,574,812
Global Funds 3,012,294 - - 3,012,294
International 7,090,589 - - 7,090,589
Total $ 3 1,677,695 $ 14,071,686 $ - $ 45,749,381
Interest rate risk is the risk that changes in market interest rates that will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market
interest rates. The Trust’s investment policy states that the duration of the portfolio should be within 6 months of the
Barclays Capital Aggregate Bond Index. The Trusts’ weighted average years to maturity as of June 30, 2020 was 12.3
years.
-63-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS (CONTINUED)
Information about the sensitivity of the fair values of the Trust’s investments to market interest rate fluctuations is
provided by the following table that shows the distribution of the Trust’s investments by maturity as of June 30, 2020:
Investment Maturities (in Years)
Less than 1 1 - 5 6 - 10 More than 10 Total
Investments with Maturities
U.S. Treasury Obligations $ - $ 405,756 $ 375,510 $ 644,389 $ 1,425,655
U.S. Governmental Agencies - 140,590 349,562 2,331,552 2,821,704
Corporate & Foreign Bonds 424,238 2,532,320 2,722,787 1,347,719 7,027,064
Municipal Obligations - 308,663 148,859 137,897 595,419
Total $ 424,238 $ 3,387,329 $ 3,596,718 $ 4,461,557 $ 11,869,842
Credit Risk. The Trust is exposed to both market risk, the risk arising from changes in fair value, and credit risk, the risk
of failure by another party to perform according to the terms of a contract. Trust assets may only be invested in
investment grade bonds with a minimum rating of Baa3 by Moody’s or BBB- by S&P. The Trust bears the risk of loss
only to the extent of the fair value of its respective investments. At June 30, 2020 the ratings of the underlying
investments of the Trust’s investments were as follows:
Rating
Aa1/Aa2/ Baa1/Baa2/
Type Aaa Aa3 A1/A2/A3 Baa3 Not Rated Total
U.S. Treasury Obligations $ 1,425,655 $ - $ - $ - $ - $ 1,425,655
U.S. Governmental Agencies 5 8,971 - - - 2,762,733 2,821,704
Corporate & Foreign Bonds 4 14,108 872,321 2,621,678 2,776,881 342,076 7,027,064
Municipal Obligations 1 06,283 489,136 - - - 595,419
Total $ 2 ,005,017 $ 1,361,457 $ 2,621,678 $ 2,776,881 $ 3,104,809 $ 11,869,842
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer)
to a transaction, the Trust will not be able to recover the value of its investment or collateral securities that are in the
possession of another party. The Trust’s investment policy does not contain legal or policy requirements that would limit
the exposure to custodial credit risk for deposits or investments.
The Trust has all of its assets on deposit with Wilmington Trust Company in connection with its investing and cash
management activities. In the event of a financial institution’s insolvency, recovery of Trust assets on deposit may be
limited to account insurance or other protection afforded such deposits.
The following summarizes custodial credit risk related to investments held by the custodian as of June 30, 2020, which
are uninsured and unregistered as well as the interest rate range:
Fair Value Interest Rate Range
U.S. Treasury Obligations $ 1 ,425,655 .25 to 4.50%
U.S. Governmental Agencies 2 ,821,704 1.3 to 4.50%
Corporate & Foreign bonds 7 ,027,064 1.94 to 5.87%
Municipal Obligations 5 95,419 2.68 to 5.55%
Taxable Fixed Income Funds 2 ,201,844 N/A
Mutual Funds 2 1,574,812 N/A
Global Funds 3 ,012,294 N/A
International 7 ,090,589 N/A
Total $ 45,749,381
-64-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS (CONTINUED)
Concentration of credit risk. The following general asset allocation guidelines have been established through the Trust’s
investment policy.
Asset Class Minimum Maximum Target
Equities 50% 70% 65%
Fixed Income 30% 50% 35%
Cash and Equivalents 0% 10% 0%
The Trust held the following investments as of June 30, 2020 that exceeded 5% of the total investment balance as of June
30, 2020:
Name Amount
Lazard International Strategic Equity Funds $ 3,545,538
Transamerica TS&W International Equity Fund 3,545,051
Vanguard 500 Index Fund 7,056,805
Vanguard Mid-Cap Index Fund -Admiral Shares 3,016,555
New World Fund 3,012,295
BlackRock High Yield Bond 2,201,844
Cohen & Syeers Realty 2,494,507
Vanguard Russell 1000 6,190,044
Foreign currency risk is the risk that changes in the exchange rate of investments will adversely affect the fair value of
an investment. The Trust was not exposed to Foreign Currency risk as of June 30, 2020 as the Trust did not have any
investments denominated in foreign currencies.
For the year ended June 30, 2020, the annual money-weighted rate of return on investments, net of expense, was 1.74%.
The money-weighted rate of return expresses investment performance, net of investment expenses, adjusted for the
changing amounts actually invested.
Capital Accounts
The Trust accounts for contributions, allocations and redemptions on a per member capital account basis. The revenues,
consulting and management fees, and administrative service fee are allocated pro rata to the capital accounts of each
member based on committed capital. The fair value of member capital accounts is determined monthly.
Income Taxes
The Trust complies with the requirements of Section 115 of the Internal Revenue Code and is exempt from income taxes.
LOSAP Funds
The LOSAP funds are invested in a MassMutual General Investment Account (GIA). The GIA, backed by
MassMutual’s general assets, is designed to provide stable, guaranteed rate of return and guarantee of principal. General
investment account assets are managed with reference to their associated liabilities so product specifications and
obligations to clients can be met with a high degree of certainty, even when market conditions change. Investment risk
management is a high priority. Strict diversification among industries and individual issuers help mitigate credit risk.
Various quantitative tools and systems, as well as qualitative approaches, are used to manage interest rate risk and
liquidity risk. Assets in the GIA were managed to range from 5 to 6 years. The Massachusetts Mutual Life Insurance
Company (does not apply to any separate investment accounts or mutual funds offered by MassMutual or its affiliates)
are rated AA+ from Standard and Poor’s.
-65-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS (CONTINUED)
LOSAP Funds (Continued)
If the GIA Contract is fully or partially terminated, participants will receive the liquidation value of the GIA instead of
the book value (i.e., contract value), which is the value disclosed on participant statements and recorded within these
financial statements. The liquidation value is determined in accordance with a formula contained in the GIA Contract
and is designed to reflect the value of the assets in the general investment account. This liquidation value may be more or
less than the book value of the plan’s investment in the GIA Contract. This means that upon partial or full termination of
the GIA Contract a participant’s account balance in the GIA may be either increased or decreased.
The County’s LOSAP fund GIA account balance as of June 30, 2020 is $3,349,625 and is included in restricted LOSAP
plan assets on the general fund balance sheet.
The fair value GAAP hierarchy is based on the valuation of inputs used to measure the fair value of the asset. Level 1
inputs are quoted market prices in active markets for identical assets; Level 2 inputs are significant other observable
inputs; and Level 3 are significant unobservable inputs. GIA is measured on recurring basis and is considered to be
Level 3 as liquidation value is based on actuarial formula as defined under the terms of the contract with no observable
price.
COMPONENT UNITS (BOARD OF EDUCATION AND LIBRARY)
Component Unit - Board of Education - At year-end, the carrying amount of deposits was $15,158,079, including
$300,000 in certificates of deposit and excluding the carrying amount of fiduciary funds. At June 30, 2020, the Board
had deposits of approximately $15.8 million with local banks and the bank deposits were fully insured or collateralized.
Component Unit – Library - At year-end, the carrying amount of all bank deposits, including a $10,500 certificate of
deposit, was $814,050 while collected bank balances were $866,928. Of the bank balances, $250,000 was secured by the
FDIC and $616,928 was secured by collateral held by the pledging bank’s trust department but not in the Library’s
name.
-66-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
B. INVESTMENT INCOME
PRIMARY GOVERNMENT
Total investment income earned in all governmental and business-type funds was credited for use as follows:
Investment
Governmental Funds Income
Major Governmental Funds
General Fund $ 950,612
General Capital Projects 226,788
Roads Capital Projects 35,555
Non-Major Governmental Funds 180,062
Total Investment Income $ 1,393,017
Business-Type Funds
Major Enterprise Funds
Sanitary District $ 588,752
Bay Bridge Airport 374
Total Investment Income $ 589,126
-67-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 4 - ACCOUNTS RECEIVABLE
Receivables as of June 30, 2020 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 $ 660,790 $ - $ - $ - $ 660,790 $ - $ 660,790
Taxes - Property Used for Generating Electricity 189,722 - - - 189,722 - 189,722
Taxes - Other 296,970 - - 745 297,715 - 297,715
Subtotal Taxes 1,147,482 - - 745 1,148,227 - 1,148,227
Other Accounts Receivable:
Queen Anne's County Public Housing Authority 84,372 694,356 - - 778,728 - 778,728
Sanitary District - User and Septage Fees - - - - - 584,492 584,492
Board of Education 8,594 - - - 8,594 - 8,594
Retirees Insurance 31,641 - - - 31,641 - 31,641
Governmental Funds - User Fees 16,594 - 3,027 - 19,621 - 19,621
Public Landings Receivables - - - - - 73,504 73,504
Animal Services Donation 91,789 - - - 91,789 - 91,789
Airport - Fuel Sales and User and Rental Fees - - - - - 22,475 22,475
Miscellaneous Receivables 64,451 134,197 - 32,098 230,746 - 230,746
Subtotal Other Accounts Receivable 297,441 828,553 3,027 32,098 1,161,119 680,471 1,841,590
Loans Receivable - - - 6,624,106 6,624,106 - 6,624,106
Subtotal Other Accounts and Loans Receivable 297,441 828,553 3,027 6,656,204 7,785,225 680,471 8,465,696
Special Assessments - - 67,125 774,172 841,297 - 841,297
Intergovernmental
Income Taxes Held by State 21,949,883 - - - 21,949,883 - 21,949,883
Grants Receivable 331,893 8 9,851 - 1,382,735 1,804,479 72,731 1,877,210
Recordation Tax 567,952 - - - 567,952 - 567,952
State-Shared Highway User Tax 238,460 - - - 238,460 - 238,460
Bonds Receivable 106,618 - - - 106,618 - 106,618
Subtotal Intergovernmental 23,194,806 8 9,851 - 1,382,735 24,667,392 72,731 24,740,123
Restricted Receivables
Accounts Receivable - - - - - 36,469 36,469
Special Assessments - - - - - 12,427,912 12,427,912
Subtotal Restricted Receivables - - - - - 12,464,381 12,464,381
Total Receivables $ 24,639,729 $ 918,404 $ 70,152 $ 8,813,856 $ 34,442,141 $ 13,217,583 $ 47,659,724
The County does not have any allowance for doubtful accounts related to the above receivables.
In Fiscal Year 2014, the County issued bonds on behalf of three mid-shore counties (Dorchester, Caroline, and Talbot) in
order to provide funding for the new Center for Allied Health and Athletics at Chesapeake College. Therefore, in addition
to the Governmental and Enterprise Fund receivables listed above, the County also has a $3.7 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.
-68-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
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 is $106,618. 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 the receivable related to Chesapeake College, there is also a receivable of
$3.7 million included in the Government-Wide Statement of Net Position. Details are included on the previous page.
Loans receivable in the amount of $6,624,106 relate to the Housing and Community Services, Impact Fees, and Revolving
Loan Special Revenue Funds. Loans receivable in the amount of $5,695,438 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 $59,919 are also repaid over a number of years.
The remaining loan receivable balance of $868,749 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 $21,949,883 have been estimated by the State as income tax due to the
County. Local income tax revenue is collected by the State and distributed to the local governments throughout the year.
The State’s distribution of the County’s share of income taxes lags behind the County’s fiscal year. 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 $841,297 represent receivables for governmental activities. Part of this amount
consists of $67,125 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 $774,172 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 $12,427,912 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.
-69-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
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 $ 13,939
Inspection Fees Collected in Advance 809,893
Subtotal 823,832
General Capital Projects Fund
Grant Drawdowns in Excess of Expenditures 48,655
Non-Major Governmental Funds
Grant Drawdowns in Excess of Expenditures 3,904,394
Total Unearned Revenue $ 4,776,881
Business-Type Funds
Major Enterprise Funds
Sanitary District
Inspection Fees $ 245,640
Non-Major Enterprise Funds 3,354
Total Unearned Revenue $ 248,994
-70-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 6 – CAPITAL ASSETS
PRIMARY GOVERNMENT
Changes in the County’s capital assets for governmental activities for the year ended June 30, 2020 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, 2019 Increases Transfers Decreases June 30, 2020
Capital Assets, not being depreciated:
Land $ 38,843,071 $ - $ - $ (121,258) $ 38,721,813
Intangible Rights - Easements 821,819 - - - 821,819
Land Improvements 3,714,283 - - - 3,714,283
Construction in Progress 27,161,399 1,954,630 (21,788,423) (95,427) 7,232,179
Land - Inexhaustible Infrastructure Improvements 43,890,863 - - - 43,890,863
Total Capital Assets, not being depreciated 114,431,435 1,954,630 (21,788,423) (216,685) 94,380,957
Capital Assets, being depreciated:
Buildings and Building Improvements 48,363,268 4 91,194 21,394,321 (709,176) 69,539,607
Improvements other than Buildings 11,019,917 1 75,738 - - 11,195,655
Vehicles 13,634,456 8 41,382 - (543,159) 13,932,679
Equipment 12,658,704 1,255,859 152,249 (237,842) 13,828,970
Furniture and Fixtures 11,592,749 3 31,862 241,853 (530,052) 11,636,412
Infrastructure Improvements - Depreciable 19,236,142 - - - 19,236,142
Total Capital Assets, being depreciated 116,505,236 3,096,035 21,788,423 (2,020,229) 139,369,465
Less Accumulated Depreciation for:
Buildings and Building Improvements 16,748,750 1,515,345 - (309,348) 17,954,747
Improvements other than Buildings 3,678,963 4 30,793 - - 4,109,756
Vehicles 7,820,462 9 09,648 - (382,639) 8,347,471
Equipment 7,716,737 7 73,896 - (214,311) 8,276,322
Furniture and Fixtures 4,050,678 1,088,911 - (518,590) 4,620,999
Infrastructure Improvements - Depreciable 9,262,627 3 87,400 - - 9,650,027
Total Accumulated Depreciation 49,278,217 5,105,993 - (1,424,888) 52,959,322
Total Capital Assets, being depreciated, net 67,227,019 (2,009,958) 21,788,423 (595,341) 86,410,143
Governmental activities Capital Assets, net $ 181,658,454 $ (55,328) $ - $ (812,026) $ 180,791,100
-71-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
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, 2020 are summarized as
follows, with depreciation shown separately. Assets resulting from completed capital projects are shown in the Transfers
column. Asset retirements are shown in the Decreases column.
Balance Balance
Business-Type Activities June 30, 2019 Increases Transfers Decreases June 30, 2020
Capital Assets, not being depreciated:
Land $ 13,142,176 $ - $ - $ - $ 13,142,176
Land Improvements 9,500 - - - 9,500
Intangible Rights 6,140 - - - 6,140
Construction in Progress 9,480,284 3,878,391 - (3,960) 13,354,715
Land - Inexhaustible Infrastructure Improvements 2,481,094 - - - 2,481,094
Total Capital Assets, not being depreciated 25,119,194 3,878,391 - (3,960) 28,993,625
Capital Assets, being depreciated:
Buildings and Improvements to Buildings 16,165,829 27,200 - - 16,193,029
Improvements other than Buildings 15,126,030 - - - 15,126,030
Vehicles 1,739,970 86,483 - (23,475) 1,802,978
Equipment 23,842,397 198,668 - (30,684) 24,010,381
Furniture and Fixtures 43,266 - - - 43,266
Infrastructure Improvements - Depreciable 103,161,225 2,681,960 - - 105,843,185
Total Capital Assets, being depreciated 160,078,717 2,994,311 - (54,159) 163,018,869
Less Accumulated Depreciation for:
Buildings and Improvements to Buildings 9,863,402 273,425 - - 10,136,827
Improvements other than Buildings 6,148,268 533,737 - - 6,682,005
Vehicles 1,173,045 136,594 - (23,475) 1,286,164
Equipment 14,756,892 536,066 - (30,684) 15,262,274
Furniture and Fixtures 15,894 3,206 - - 19,100
Infrastructure Improvements - Depreciable 35,196,080 2,090,545 - - 37,286,625
Total Accumulated Depreciation 67,153,581 3,573,573 - (54,159) 70,672,995
Total Capital Assets, being depreciated, net 92,925,136 (579,262) - - 92,345,874
Business-Type activities Capital Assets, net $ 118,044,330 $ 3,299,129 $ - $ (3,960) $ 121,339,499
-72-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
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 $ 788,176
Public Safety 1,906,492
Public Works 1,460,515
Parks & Recreation 574,603
Health 21,121
Social Services 257,102
Library 25,198
Conservation of Natural Resources 32,868
Economic/Community Development 39,918
$ 5,105,993
Business-Type Activities
Major Enterprise Funds:
Sanitary District $ 2,947,010
Bay Bridge Airport 431,254
Non-Major Enterprise Funds 154,221
$ 3,532,485
-73-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS
Board of Education: Capital asset activity for the year ended June 30, 2020 is as follows:
Balance Balance
Board of Education June 30, 2019 Increases Transfers Decreases June 30, 2020
Capital Assets, not being depreciated:
Land $ 6,363,040 $ - $ - $ - $ 6,363,040
Construction in Progress 4,753,645 1,668,381 (4,906,043) - 1,515,983
Total Capital Assets, not being depreciated 11,116,685 1,668,381 (4,906,043) - 7,879,023
Capital Assets, being depreciated:
Land Improvements 5,410,966 - - - 5,410,966
Buildings 207,428,485 - 4,267,043 - 211,695,528
Furniture, Fixtures, and Equipment 16,959,287 320,148 639,000 (1,168,377) 16,750,058
Total Capital Assets, being depreciated 229,798,738 320,148 4,906,043 (1,168,377) 233,856,552
Less Accumulated Depreciation for:
Land Improvements 4,601,493 116,857 - - 4,718,350
Buildings 64,038,243 4,402,399 - - 68,440,642
Furniture, Fixtures, and Equipment 11,234,190 1,151,173 - (1,163,471) 11,221,892
Total Accumulated Depreciation 79,873,926 5,670,429 - (1,163,471) 84,380,884
Total Capital Assets, being depreciated, net 149,924,812 ( 5,350,281) 4,906,043 (4,906) 149,475,668
Capital Assets, net $ 161,041,497 $ ( 3,681,900) $ - $ (4,906) $ 157,354,691
-74-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS (CONTINUED)
Queen Anne’s County Free Library: Capital asset activity for the year ended June 30, 2020 is as follows:
Balance Balance
Library June 30, 2019 Increases Decreases June 30, 2020
Capital Assets, not being depreciated:
Artwork $ 29,850 $ - $ - $ 29,850
Capital Assets, being depreciated:
Books and Media 1,853,490 165,197 (144,310) 1,874,377
Building Improvements 402,207 - - 402,207
Equipment 155,885 - - 155,885
Total Capital Assets, being depreciated 2,411,582 165,197 (144,310) 2,432,469
Less Accumulated Depreciation 1,066,412 181,009 (129,852) 1,117,569
Total Capital Assets, being depreciated, net 1,345,170 (15,812) (14,458) 1,314,900
Capital Assets, net $ 1 ,375,020 $ (15,812) $ (14,458) $ 1,344,750
-75-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 7 - INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables are usually used by the County to cover temporary cash deficits in individual funds
until grant or similar resources are received. Occasionally, these receivables and payables are used in lieu of short-term
external borrowing, such as for capital lease agreements.
The interfund and intra-entity receivables and payables consist of the following at June 30, 2020:
Due from Fund
Non-Major Bay Bridge Non-Major
Governmental Airport Enterprise Total Due
Due to Fund
General Fund $ 202,474 $ - $ 693,566 $ 896,040
General Capital Projects 24,133 1,104,599 - 1,128,732
Total Due to Other Funds $ 226,607 $ 1,104,599 $ 693,566 $ 2,024,772
Note that there is a $47,208 reconciling item between the Board of Education and the County as of June 30, 2020 due to
a timing difference for an expense incurred by the Board of Education.
Interfund receivables and payables are reported on the Statement of Net Position as Internal Balances, net of transactions
between the same types of funds.
-76-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
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 transfers from the General Fund provide funding for capital projects and to fund programs in the non-major special
revenue funds. Transfers from the General Fund to the enterprise funds are to pay for a portion of debt service related to
an Airport project and also to provide funding to the Golf Course Fund. Transfers from General Capital Projects
represent funds transferred to the Agricultural Transfer Tax fund for the purchase of an easement and other
miscellaneous transfers. Transfers from Water and Sewer Sanitary District funds are to provide funding for the County
mapping project. The transfers from Restricted and Debt Service Sanitary funds are to cover Sanitary related debt
service.
The following interfund transfers were made during the fiscal year ended June 30, 2020:
Transfers in Fund
Total General General Non-Major Major Non-Major Total
Transfers Out Fund Capital Projects Governmental Enterprise Enterprise Transfers In
Transfers Out Fund
General Fund $ 9,310,064 $ - $ 5,922,603 $ 3,229,877 $ 60,963 $ 96,621 $ 9,310,064
General Capital Projects 73,739 10,051 - 62,193 - 1,495 73,739
Total Major Governmental Funds 9,383,803 10,051 5,922,603 3,292,070 60,963 98,116 9,383,803
Non-Major Governmental 455,750 215,200 - 240,550 - - 455,750
Sanitary District - Sewer 5,000 - 5,000 - - - 5,000
Sanitary District - Water 5,000 - 5,000 - - - 5,000
Sanitary District - Restricted 1,051,067 - - - 1,051,067 - 1,051,067
Sanitary District - Debt Service 1,059,710 - - - 1,059,710 - 1,059,710
Total Major Enterprise Funds 2,120,777 - 10,000 - 2,110,777 - 2,120,777
Total Transfers Out $ 11,960,330 $ 225,251 $ 5,932,603 $ 3,532,620 $ 2,171,740 $ 98,116 $ 11,960,330
-77-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 9 - NONCURRENT LIABILITIES
A. CHANGES IN NONCURRENT LIABILITIES
During the year ended June 30, 2020, 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 June 30, 2019 of debt Repayments June 30, 2020 One Year One Year
General Bonds Payable $ 1 25,123,408 $ 23,236,594 $ 25,049,912 $ 123,310,090 $ 7 ,177,688 $ 116,132,402
General Bonds Payable - Related to PHA 8 50,357 445,590 601,591 694,356 7 9,414 614,942
General Bonds Payable - Related to Ches College 3 ,921,036 - 196,159 3 ,724,877 203,662 3 ,521,215
Notes Payable 1 ,098,323 - 322,734 775,589 7 1,816 703,773
Bond Premiums 6 ,090,278 3,654,843 961,033 8 ,784,088 739,143 8 ,044,945
Subtotal Governmental Activities Debt 137,083,402 27,337,027 27,131,429 137,289,000 8 ,271,723 129,017,277
Other Post-Employment Benefit Obligation 4 3,482,396 2,959,968 1 ,561,872 44,880,492 - 44,880,492
Net Pension Liability 2 6,508,985 450,666 - 26,959,651 - 26,959,651
LOSAP Liability 6 ,669,736 1,378,298 - 8 ,048,034 - 8 ,048,034
Compensated Absences 2 ,728,413 1,799,869 1 ,595,091 2 ,933,191 1 ,700,895 1 ,232,296
Total Governmental Activities Debt $ 216,472,932 $ 33,925,828 30,288,392 $ 220,110,368 $ 9 ,972,618 $ 210,137,750
Less College Reimbursements (221,841)
Total Governmental Retirements and Repayments $ 30,066,551
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 $ 25,049,912
Notes Payable 322,734
LESS: Payment for Refunding (17,043,453)
PLUS: Payment to Bond Ref Agent (PHA portion) 517,252
LESS: College Reimbursements (221,841)
Total Principal Payments $ 8,624,604
The County added amounts to several bond offerings on behalf of Chesapeake College, which cannot borrow money on
its own. The College reimbursed the County $221,841 for this year’s principal and interest payments.
-78-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2020, 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, 2019 of debt Repayments June 30, 2020 One Year One Year
Golf Course $ 167,864 $ - $ 75,871 $ 91,993 $ 3 ,835 $ 88,158
Bay Bridge Airport 1,727,923 92,167 217,511 1 ,602,579 9 3,512 1 ,509,067
Public Landings and Marinas 729,412 490,649 623,956 596,105 4 6,888 549,217
Sanitary District 29,419,756 3,446,676 934,063 3 1,932,369 9 43,404 3 0,988,965
Subtotal Debt 32,044,955 4,029,492 1,851,401 3 4,223,046 1 ,087,639 3 3,135,407
Bond Premiums
Golf Course 1 4,816 - 8,654 6,162 3 62 5,800
Bay Bridge Airport 8 0,078 18,378 10,232 88,224 7 ,379 80,845
Public Landings and Marinas 4 ,918 97,832 11,932 90,818 9 ,142 81,676
Subtotal Bond Premiums 99,812 116,210 30,818 185,204 1 6,883 168,321
Subtotal Business-Type Activities Debt 32,144,767 4,145,702 1,882,219 3 4,408,250 1 ,104,522 3 3,303,728
Other Post-Employment Benefit Obligation 8,027,801 199,752 - 8 ,227,553 - 8 ,227,553
Net Pension Liability 2,528,455 - 4,789 2 ,523,666 - 2 ,523,666
Compensated Absences 404,206 246,982 236,308 414,880 2 40,580 174,300
Total Business-Type Activities Debt $ 43,105,229 $ 4,592,436 $ 2,123,316 $ 4 5,574,349 $ 1 ,345,102 $ 4 4,229,247
-79-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2020, 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, 2019 of new debt Repayments June 30, 2020 One Year One Year
Queen Anne's County
Board of Education
Compensated Absences $ 803,438 $ 354,619 $ - $ 1,158,057 $ 183,009 $ 975,048
Capital Leases 1,928,150 - 171,714 1,756,436 183,244 1,573,192
Other Post-Employment Benefit Obligation 193,804,027 31,193,717 - 224,997,744 - 224,997,744
Net Pension Liability 4,839,054 370,665 - 5,209,719 - 5,209,719
Subtotal 201,374,669 31,919,001 171,714 233,121,956 366,253 232,755,703
Free Library
Other Post-Employment Benefit Obligation 755,406 80,408 - 835,814 - 835,814
Total Noncurrent Liabilites: Component Units $ 202,130,075 $ 31,999,409 $ 171,714 $ 233,957,770 $ 366,253 $ 233,591,517
-80-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
NET PENSION LIABILITY, AND COMPENSATED ABSENCES
PRIMARY GOVERNMENT
All general obligation bonds are valid and legally binding general obligations of Queen Anne’s County and constitutes
an irrevocable pledge of its full faith and credit and unlimited taxing power. Governmental bonds are payable from ad
valorem taxes, unlimited as to rate or amount on all real, tangible, personal, and certain intangible property subject to
taxation at full rate for local purposes in the County.
Business-type bonds, while representing general obligations of the County government, are to be paid from income
earned by the related enterprise fund. Enterprise funds that have such debt are: Sewer Operations, Bay Bridge Airport,
Blue Heron Golf Course, and Public Landings and Marinas.
During fiscal year 2019, the County implemented Governmental Accounting Standards Board’s Statement (GASB)
Statement 73, Accounting and Financial Reporting for Pensions and Related Assets That are Not Within the Scope of
GASB Statement 68. The County’ Fire and EMS Commission Pension Plan Length of Service Award Program
(“LOSAP”) is included in GASB 73 reporting. For governmental funds, the LOSAP obligations are reported in the
government-wide statements in the public safety function. There are not any LOSAP obligations in the enterprise funds.
LOSAP costs in governmental funds are charged to the General Fund. Additional information can be found in Note 15.
During fiscal year 2018, the County implemented the provisions of Governmental Accounting Standards Board (GASB)
Statement 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions. For
governmental funds, the other post-employment benefit obligations are reported in the government-wide statements in
the function in which that employee usually charges their productive time. For enterprise funds, these obligations are
reported in the enterprise fund in which that employee charges the majority of their productive time. Other Post-
Employment Benefit Obligation costs in governmental funds are charged to the General Fund. Additional information
can be found in Note 14, Other Post-Employment Benefits.
During fiscal year 2015, the County implemented the provisions of Governmental Accounting Standards Board (GASB)
Statement 68, Accounting and Financial Reporting for Pensions. For governmental funds, the net pension liability is
reported in the government-wide statements in the function in which that employee usually charges their productive
time. For enterprise funds, these obligations are reported in the enterprise fund in which the employee charges the
majority of their productive time. Net Pension Liability costs in governmental funds are charged to the Governmental
Fund in which the employee charges their time. Additional information can be found in Note 12, Retirement Plans.
Compensated absences that mature during the fiscal year, in that they are paid when the employee takes vacation leave or
upon the employee’s termination, are typically liquidated from the governmental or enterprise fund in which that
employee charges the majority of their productive time. They are paid as regular wages. Compensated absences that do
not mature during the fiscal year are accrued at year-end as an adjustment to liability for compensated absences. For
governmental funds, these adjustments are reported in the government-wide statements in the function in which that
employee usually charges their productive time. For enterprise funds, these adjustments are reported in the enterprise
fund in which that employee charges the majority of their productive time. In the case of grant-funded activities that
disallow compensated absences as an eligible cost, they are paid as administrative wages in the same Fund.
Compensated absences in governmental funds are primarily charged to the General Fund or Special Revenue Funds; they
are usually not charged to Capital Projects Funds.
-81-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
NET PENSION LIABILITY, AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
As of June 30, 2020, general obligation bonds and notes payable for governmental activities are comprised of the
following, along with other post-employment benefits, net pension liability, and accrued compensated absences:
Year Amount Outstanding Due in
Paying Interest Series of Original June 30, Due Within More than
Governmental Activities Fund Rate Matures Issue 2020 One Year One Year
General Obligation Bonds Payable
2011 Public Facilities General 2.00%-4.25% 2031 $ 21,532,570 $ 13,922,185 $ 1,017,463 $ 12,904,722
2012 Refunding Bonds General 2.00%-4.00% 2023 8,010,000 2,613,566 837,338 1,776,228
2014 Public Facilities General 2.00%-4.00% 2034 17,590,000 12,874,106 703,908 12,170,198
2015 Public Facilities General 3.00%-5.00% 2036 11,622,756 9,869,388 448,180 9,421,208
2015 Refunding Bonds General 2.00%-5.00% 2027 13,521,625 9,986,244 1,239,805 8,746,439
2016 Public Facilities General 2.00%-4.00% 2036 13,934,364 12,503,007 521,165 11,981,842
2017 Public Facilities General 3.00%-5.00% 2037 12,600,000 11,800,000 430,000 11,370,000
2018 Public Facilities General 3.00%-5.00% 2038 16,000,000 15,505,000 520,000 14,985,000
2019 Public Facilities General 3.00%-5.00% 2039 11,000,000 11,000,000 350,000 10,650,000
2019 Refunding Bonds General 4.00%-5.00% 2029 14,236,594 14,236,594 1,109,829 13,126,765
2020 Public Facilities General 2.00%-5.00% 2040 9,000,000 9,000,000 - 9,000,000
2012 Refunding Bonds (2003 Bonds) Due from PHA 3.50%-4.50% 2023 335,000 71,434 22,662 48,772
2015 Refunding Facilities (2006 Bonds) Due from PHA 2.00%-3.00% 2027 240,112 177,332 22,016 155,316
2019 Refunding Facilities (2009 Bonds) Due from PHA 4.00%-5.00% 2029 445,590 445,590 34,736 410,854
2014 Public Facilities Due from other Counties 2.00%-4.00% 2034 4,800,000 3,724,877 203,662 3,521,215
Subtotal Bonds Payable 127,729,323 7,460,764 120,268,559
Notes Payable
State of Maryland - Price Ck. Spec. Rev. 0.00% 2021 625,000 24,000 24,000 -
State of Maryland - Grove Ck. Spec. Rev. 0.00% 2034 510,617 285,942 20,425 265,517
State of Maryland - Narrows Pointe Spec. Rev. 0.00% 2030 15,542 465,647 27,391 438,256
Subtotal Notes Payable 7 75,589 7 1,816 7 03,773
Subtotal Bonds and Notes Payable 128,504,912 7,532,580 120,972,332
Bond Premiums 8,784,088 739,143 8,044,945
Subtotal Governmental Activities Debt 137,289,000 8,271,723 129,017,277
Other Post-Employment Benefit Obligation 44,880,492 - 44,880,492
Net Pension Liability 26,959,651 - 26,959,651
LOSAP Liability 8,048,034 - 8,048,034
Compensated Absences 2,933,191 1,700,895 1,232,296
Total Governmental Activities $ 220,110,368 $ 9,972,618 $ 210,137,750
-82-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
NET PENSION LIABILITY, AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize general obligation bonds and notes payable outstanding as of June 30, 2020 for
governmental activities are as follows:
Governmental Activities
Year Ending Governmental Bonds Payable Governmental Notes Payable
June 30, Principal Interest Total Principal Interest Total
2021 $ 7,460,764 $ 4,624,507 $ 12,085,271 $ 71,816 $ - $ 71,816
2022 8,098,741 4,406,619 12,505,360 47,816 - 47,816
2023 8,496,546 4,049,286 12,545,832 47,816 - 47,816
2024 7,914,420 3,674,263 11,588,683 47,816 - 47,816
2025 8,286,805 3,353,351 11,640,156 47,816 - 47,816
2026-2030 41,916,394 11,705,198 53,621,592 239,080 - 239,080
2031-2035 28,823,608 4,869,752 33,693,360 218,647 - 218,647
2036-2040 16,117,045 1,009,673 17,126,718 54,782 - 54,782
2041 615,000 6,919 621,919 - - -
$ 127,729,323 $ 37,699,568 $ 165,428,891 $ 775,589 $ - $ 775,589
-83-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
NET PENSION LIABILITY, AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
General obligation bonds and notes payable outstanding as of June 30, 2020 for business-type activities are comprised of
the following, as well as other post-employment benefits, net pension liability, and accrued compensated absences:
Year Amount Outstanding Due in
Interest Series of Original June 30, Due Within More than
Business -Type Activities Rate Matures Issue 2020 One Year One Year
Golf Course
2016 Public Facilities Bonds 2.00%-4.00% 2036 $ 85,636 $ 91,993 $ 3 ,835 $ 88,158
Bond Premiums 6,162 362 5,800
Subtotal Golf Course 98,155 4 ,197 93,958
Bay Bridge Airport
2011 Public Facilities Bonds 2.00%-4.25% 2031 21,968 15,606 1 ,164 14,442
2014 Public Facilities Bonds 2.00%-4.00% 2034 964,940 776,017 42,430 733,587
2015 Public Facilities Bonds 3.00%-5.00% 2036 577,244 590,611 26,820 563,791
2015 Refunding Bonds 2.00%-5.00% 2027 173,556 128,178 15,913 112,265
2019 Refunding Bonds 4.00%-5.00% 2029 92,167 92,167 7 ,185 84,982
Bond Premiums 88,224 7 ,379 80,845
Subtotal Airport 1,690,803 100,891 1,589,912
Public Landings and Marinas
2011 Public Facilities Bonds 2.00%-4.25% 2031 133,908 87,208 6 ,374 80,834
2015 Refunding Bonds 2.00%-5.00% 2027 24,707 18,248 2 ,265 15,983
2019 Refunding Bonds 4.00%-5.00% 2029 490,649 490,649 38,249 452,400
Bond Premiums 90,818 9 ,142 81,676
Subtotal Public Landings and Marinas 686,923 56,030 630,893
Sanitary District
Maryland Water Quality-2005 Enhancement 1.00% 2027 18,252,291 6,790,511 943,404 5,847,107
Maryland Water Quality-2017 Loan 0.80% 2051 25,141,858 25,141,858 - 25,141,858
Subtotal Sanitary District 31,932,369 943,404 30,988,965
Total Business-Type Activities Debt 34,408,250 1,104,522 33,303,728
Other Post-Employment Benefit Obligation 8,227,553 - 8,227,553
Net Pension Liability 2,523,666 - 2,523,666
Compensated Absences 414,880 240,580 174,300
Total Business-Type Activities $ 45,574,349 $ 1,345,102 $ 44,229,247
-84-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
NET PENSION LIABILITY, AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize business-type bonds and notes outstanding at June 30, 2020, are as follows:
Business-Type Activities
Year Ending Business-Type Bonds Payable Business-Type Notes Payable
June 30, Principal Interest Total Principal Interest Total
2021 $ 144,235 $ 88,943 $ 233,178 $ 943,404 $ 403,201 $ 1,346,605
2022 151,257 82,249 233,506 1,898,092 436,745 2,334,837
2023 158,453 75,220 233,673 1,915,182 398,950 2,314,132
2024 165,580 67,840 233,420 1,932,429 381,705 2,314,134
2025 173,194 60,999 234,193 1,949,832 364,302 2,314,134
2026-2030 908,607 200,232 1,108,839 6,933,236 1,443,532 8,376,768
2031-2035 526,388 58,813 585,201 5,159,553 1,112,562 6,272,115
2036-2040 62,963 1,281 64,244 5,369,263 902,850 6,272,113
2041-2045 - - - 5,543,153 684,614 6,227,767
2046 - - - 288,225 109,960 398,185
$ 2,290,677 $ 635,577 $ 2,926,254 $ 31,932,369 $ 6,238,421 $ 38,170,790
C. ISSUANCE OF NEW DEBT
PRIMARY GOVERNMENT
In June 2020, Queen Anne's County issued Public Facilities Bonds of 2020 for $9,000,000. These General Obligation
Bonds carry interest rates of 2.0 to 5.0 percent and mature serially through 2040. The primary use of the bond proceeds
is to provide funding for the various County facility renovations, Roads capital projects, various Board of Education
projects, with minor amounts earmarked for construction of general government capital projects. Moody’s Investor
Service has assigned the rating of Aa1, Fitch Ratings has assigned a rating of AAA and Standard & Poor’s also assigned
a AAA rating to the Queen Anne’s County 2020 Bonds.
In August 2019, the County issued $15,265,000 in Public Facilities Refunding Bonds, with interest rates ranging from
4.0 to 5.0 percent. The net proceeds of $18,157,073 (after a premium of $3,043,749 and payments of $151,676 in
underwriting fees, insurance and other issue costs) were used to refund $17,720,000 of outstanding Public Facilities
Bonds of 2009, Series B, BAB2009B. The refunding resulted in a difference between the reacquisition price and the net
carrying amount of the old debt of $76,523. This difference, reported in the accompanying financial statements as a
deduction from bonds payable, is being charged to operations through the year 2030 using the effective interest method.
The County completed the refunding to reduce the total debt service payments over a period of 11 years by $2,311,198
and to obtain an economic gain (difference between the present values of the old and new debt service payments) of
$2,179,819.
In fiscal year 2017, the County began borrowing funds through the Maryland Water Quality Financing Administration
for the Southern Kent Island (SKI) Sanitary Project. The total loan amount will be approximately $32 million and funds
will be disbursed as the project costs are incurred. Principal payments will begin in 2022 and the loan will be repaid
over 30 years at an interest rate of 0.80%. In fiscal year 2020, the County received $3,446,676 as part of this loan. The
total received as of June 30, 2020 was $25,141,858. At completion of the SKI project, it is anticipated that $1,267,000 of
the loan with the Maryland Water Quality Financing Administration will be forgiven and the County will not need to
repay those funds. At that time, the County will clear the debt for the final amount forgiven.
-85-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
D. MUNICIPAL LEASE
PRIMARY GOVERNMENT
In January 2016, the County signed a note with SunTrust Equipment Financing & Leasing Corporation for the purchase
of replacement vehicles for various County departments. The total amount of the note was $1,215,590 and was payable
over five years. This note is secured by the vehicles purchased. The first payment was made in February 2016. The
annual interest rate is 2.51%. This loan was paid off in fiscal year 2020.
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, 2020 amounted to $6,105. Minimum future lease revenues are as follows:
Fiscal Year Ending Lease
June 30, Payments
2021 $ 5,635
2022 5,710
2023 5,748
2024 5,748
2025 5,824
2026-2030 29,627
2031-2035 26,513
Minimum Future Rental Revenue $ 84,805
In fiscal year 2019, Queen Anne’s County entered into an agreement with the Division of Housing and Community
Services (DHCS) to lease property from DHCS for $1 per year over the 25 years.
-86-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
F. LOCAL DEBT POLICY
PRIMARY GOVERNMENT
In May 2013, Queen Anne’s County adopted Resolution No. 13-04, which updated and replaced Resolution No. 09-13,
to continue a local debt policy in compliance with Article 95, Section 22F of the Annotated Code of Maryland. This
policy requires that the County’s Director of Budget, Finance, and Information Technology: (1) prepare a six-year capital
project plan each year; (2) propose an amount to be transferred from the General Fund operating balances to the General
Capital Projects Fund to serve as pay-as-you-go funding in the latter Fund, in order to lessen the need for future County
debt; (3) limit the County’s non-bonded indebtedness to $8.0 million for general operating expenses or capital
improvements; and (4) certify that the sum of outstanding general bonded debt and any new general obligation debt is
2.5% or less of the total taxable assessable base and is $3,000 or less per capita. This policy also stipulates that although
there is some flexibility as to the acceptable percentage of debt service to general fund expenditures, and no absolute
limit has been established by the rating agencies or the Government Finance Officers Association, anything above 12%
of total general fund expenditures would be a cause to carefully monitor debt service. In addition to the debt policy, the
Spending Affordability Committee recommended that the limit of debt service to general fund expenditures should be
limited to 10% and the County Commissioners have adopted that as a limit.
Queen Anne’s County has complied with the above policy and has not had any violations. For calculations relating to
this local debt policy, see Table 12-b in the Statistical Section of this document.
-87-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
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, 2020 are as follows:
Sanitary District
Business -Type Activities Restricted Debt Service Total
Current Restricted Assets
Equity in Pooled Cash $ 14,196,980 $ 2,031,867 $ 1 6,228,847
Accounts Receivable (Net) 36,469 - 3 6,469
Subtotal Current Restricted Assets 14,233,449 2,031,867 1 6,265,316
Noncurrent Restricted Assets
Special Assessments Receivable (Net) 1,272,191 11,155,721 1 2,427,912
LESS Deferred Inflows - Unavailable Water and Sewer Assessments ( 1,272,191) (11,150,270) (12,422,461)
Net Restricted Assets $ 14,233,449 $ 2,037,318 $ 1 6,270,767
-88-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 10 – RESTRICTED ASSETS AND LIABILITIES AND FUND BALANCES (CONTINUED)
B. RESTRICTED NET POSITION
PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES
Net Investment in Capital Assets for governmental activities, is calculated as follows:
Governmental Activities
Total Debt excluding Compensated Absences, Pension, OPEB, and LOSAP Obligations $ (136,624,084)
(includes $664,916 for deferred charge on refunding)
Add back: Debt relating to Board of Education Assets $ 52,760,851
Add back: Unspent portion of Bond Proceeds for Board of Education debt 3,085,185
Add back: Unspent portion of Bond Proceeds for Governmental debt 6,903,965
Add back: Debt relating to Chesapeake College 5,865,352
Add back: Debt relating to PHA 694,356
Add back: Debt relating to non-capital assets (Dredging) 775,588
Add back debt unrelated to Capital Assets 70,085,297
Net Assets Invested in Capital Assets 180,791,100
Net Investment in Capital Assets $ 114,252,313
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 $ 75,577,347 $ 20,503,049 $ - $ - $ 96,080,396 $ 18,023,120 $ 7,235,983 $ 121,339,499
Less: Debt excluding Compensated Absences,
OPEB, and Net Pension Liability (31,932,369) - - - (31,932,369) (1,690,803) (785,078) (34,408,250)
Plus: Deferred Charge on Refunding - - - - - 7,225 1,028 8,253
Net Investment in Capital Assets 43,644,978 20,503,049 - - 64,148,027 16,339,542 6,451,933 86,939,502
Restricted Amounts
Debt Service - - - 2,037,318 2,037,318 - - 2,037,318
Total Restricted Amounts - - - 2,037,318 2,037,318 - - 2,037,318
Total Unrestricted Amounts (Deficit) 713,089 3,428,789 14,233,449 - 18,375,327 (1,360,837) (427,430) 16,587,060
Total Net Position $ 44,358,067 $ 23,931,838 $ 14,233,449 $ 2,037,318 $ 84,560,672 $ 14,978,705 $ 6,024,503 $ 105,563,880
-89-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
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 $ 1,167,645 $ - $ - $ - $ 1,167,645
Prepaid Items 1,233,019 - - - 1,233,019
Subtotal Nonspendable 2,400,664 - - - 2,400,664
Restricted
Rainy Day Fund 1 1,197,210 - - - 11,197,210
Unspent Bond Proceeds - 9,989,150 - - 9,989,150
Economic and Community Development - - - 2,988,522 2,988,522
Employee Benefits - LOSAP 3,349,625 - - - 3,349,625
Agricultural Easements - - - 1,236,451 1,236,451
Impact Fees - 247,435 - - 247,435
Inmate Welfare - - - 212,049 212,049
Critical Areas - - - 262,028 262,028
Mosquito Control 70,964 - - - 70,964
Sheriff's Drug Task Force - - - 135,884 135,884
Vehicle Acquisition - 40,788 - - 40,788
Dredging - - - 6,095 6,095
Sheriff - Federal Confiscated Funds 1,959 - - - 1,959
Donor-Specified Purposes 91,789 - - 3,382 95,171
Subtotal Restricted 1 4,711,547 10,277,373 - 4,844,411 29,833,331
Committed
Impact Fees - - - 11,440,615 11,440,615
Revenue Stabilization Fund 6,998,256 - - - 6,998,256
Economic Development - 1,048,242 - 6,605,033 7,653,275
Rubble Surcharge - 692,090 - - 692,090
Developer Exactions - 939,883 570,966 - 1,510,849
Subtotal Committed 6,998,256 2,680,215 570,966 18,045,648 28,295,085
Assigned
Encumbrances - 9,182,280 1,983,299 - 11,165,579
Subsequent Years' Expenditures - 3,531,276 190,000 530,178 4,251,454
Capital Projects - 5,929,360 178,256 - 6,107,616
Loans Receivable - 1,957,286 - - 1,957,286
Health Department Refund 292,488 - - - 292,488
Economic Development - - - 240,000 240,000
Income Tax Contingency 806,682 - - - 806,682
Subtotal Assigned 1,099,170 20,600,202 2,351,555 770,178 24,821,105
Unassigned
General Fund 1 5,874,992 - - - 15,874,992
Fire Company Impact Fees - - - (24,133) (24,133)
Subtotal Unassigned 1 5,874,992 - - (24,133) 15,850,859
Total Governmental Funds Balances $ 41,084,629 $ 33,557,790 $ 2,922,521 $ 23,636,104 $ 101,201,044
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 10 – RESTRICTED ASSETS AND LIABILITIES AND FUND BALANCES (CONTINUED)
C. FUND BALANCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Encumbrances included in the General Capital and Roads Capital funds are for the following purposes:
General Roads
Capital Capital
General Government $ 2,630,507 $ -
Parks & Recreation 1,503,266 -
Economic Development 1,503,835 -
Education 737,433 -
Public Works 622,772 -
Public Safety 988,070 -
Library 1,126,876 -
Conservation of Natural Resources 8,987 -
Social Services 60,534 -
Resurfacing Contracts and Materials - 1,584,903
Roads Construction Equipment - 398,396
Total Encumbrances $ 9,182,280 $ 1,983,299
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 year 2020 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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 11 - RISK MANAGEMENT (CONTINUED)
Effective January 2017, the County prescription plan moved to a new pharmacy benefit manager, Express Scripts,
which is separate from CareFirst.
Settlements – In fiscal year 2018, the County paid out $29,874 as a result of a settlement involving an employee. In
fiscal years 2019 and 2020, settlements have not exceeded insurance coverage for any type of policy in effect.
NOTE 12 - RETIREMENT PLANS
Virtually all full and eligible part-time employees of Queen Anne’s County, Maryland, and its related agencies are
covered by one of the statewide contributory pension systems of the State of Maryland.
Maryland State Retirement and Pension Systems
Organization
The State Retirement Agency is the administrator of the Maryland State Retirement and Pension System (the System).
The System was established by the State Personnel and Pensions Article of the Annotated Code of Maryland to provide
retirement allowances and other benefits to State employees, teachers, police, judges, legislators, and employees of
participating governmental units. Responsibility for the System’s administration and operation is vested in a 15-member
Board of Trustees. The System is made up of two cost-sharing employer pools: the “State Pool” and the “Municipal
Pool”. The State Pool consists of State agencies, boards of education, community colleges, and libraries. The Municipal
Pool consists of participating governmental units that elected to join the System. Neither pool shares in each other’s
actuarial liabilities, thus participating governmental units that elect to join the System (the “Municipal Pool”) share in the
liabilities of the Municipal Pool only.
The State of Maryland is the statutory guarantor for the payment of all pensions, annuities, retirement allowances,
refunds, reserves, and other benefits of the System. The State is obligated to annually pay into the accumulation fund of
each State system at least an amount that, when combined with the State’s accumulation funds, is sufficient to provide
benefits payable under each plan during that fiscal year. The System is accounted for as one defined benefit plan as
defined in accordance with accounting principles generally accepted in the United States of America. Additionally, the
System is fiscally dependent on the State by virtue of the legislative and executive controls exercised with respect to its
operations, policies, and administrative budget. Accordingly, the System is included in the State’s reporting entity and
disclosed in its financial statements as a pension trust fund.
The System is comprised of the Teachers’ Retirement and Pension Systems, Employees’ Retirement and Pension
Systems, State Police Retirement System, Judges’ Retirement System, and the Law Enforcement Officers’ Pension
System (LEOPS).
The following groups of employees participate in:
Employees Plan
Board of Education - regular employees Employees System
Board of Education - teachers Teachers System
Library Teachers System
Queen Anne's County:
Elected officials Employees System
Sheriff's Deputies LEOPS
Regular employees Employees System
The System is a cost sharing multiple-employer defined benefit pension plan.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 12 - RETIREMENT PLANS (CONTINUED)
Covered Members
Teachers’ Retirement System
The Teachers’ Retirement System was established on August 1, 1927, to provide retirement allowances and other
benefits to teachers in the State. Effective January 1, 1980, the Teachers’ Retirement System was closed to new members
and the Teachers’ Pension System was established. As a result, teachers hired after December 31, 1979, became
members of the Teachers’ Pension System as a condition of employment. On or after January 1, 2005, an individual
who is a member of the Teachers’ Retirement System may not transfer membership to the Teachers’ Pension System.
Employees’ Retirement System
On October 1, 1941, the Employees’ Retirement System was established to provide retirement allowances and other
benefits to State employees, elected and appointed officials and the employees of participating governmental units.
Effective January 1, 1980, the Employees’ Retirement System was essentially closed to new members and the
Employees’ Pension system was established. As a result, State employees (other than correctional officers) and
employees of participating governmental units hired after December 31, 1979, became members of the Employees’
Pension System as a condition of employment, while all State correctional officers and members of the Maryland
General Assembly continue to be enrolled as members of the Employees’ Retirement System. On or after January 1,
2005, an individual who is a member of the Employees’ Retirement System may not transfer membership to the
Employees’ Pension System.
State Police Retirement System
The State Police Retirement System was established on July 1, 1949, to provide retirement allowances and other benefits
to any police employee or cadet of the Maryland State Police.
Judges’ Retirement System
The Judges’ Retirement System was established on June 30, 1969, to provide retirement allowances and other benefits to
for State and local, appointed, or elected judges.
The Law Enforcement Officers’ Pension System (LEOPS)
The Law Enforcement Officers’ Pension System (LEOPS) was established on July 2, 1990, to provide retirement
allowances and other benefits for certain State and local law enforcement officers. This System includes both retirement
plan and pension plan provisions which are applicable to separate portions of the System’s membership. The retirement
plan provisions are only applicable to those members who, on the date they elected to participate in LEOPS, were
members of the Employees’ Retirement System. This System’s pension plan provisions are applicable to all other
participating law enforcement officers.
Summary of Significant Plan Provisions
All plan benefits are specified by the State Personnel and Pensions Article of the Annotated Code of Maryland. For all
individuals who are members of the Employees’, Teachers’, Correctional Officers’ or State Police Retirement System on
or before June 30, 2011, retirement allowances are computed using both the highest three years’ Average Final
Compensation (AFC) and the actual number of years of accumulated creditable service. For individuals who become
members of the State Police Retirement System or the Correctional Officers’ Retirement System on or after July 1, 2011,
retirement allowances are computed using both the highest five years’ AFC and the actual number of years of
accumulated creditable service. For all individuals who are members of the pension systems of the State Retirement and
Pension System on or before June 30, 2011, pension allowances are computed using both the highest three consecutive
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 12 - RETIREMENT PLANS (CONTINUED)
years’ AFC and the actual number of years of accumulated creditable service. For any individual who becomes a
member of one of the pension systems on or after July 1, 2011, pension allowances are computed using both the highest
five consecutive year’s AFC and the actual number of years of accumulated creditable service. Various retirement
options are available under each system which ultimately determines how a retiree’s benefit allowance will be computed.
Some of these options require actuarial reductions based on the retiree’s and/or designated beneficiary’s attained age and
similar actuarial factors.
The member contribution rate for members of the Teachers’ Retirement Pension System and Employees’ Retirement
Pension System is 7% and 6% respectively, and 7% for members of the Law Enforcement Officers’ Pension System.
The member contribution rate for members of the Judges’ Retirement System is 8%.
In addition, the benefit attributable to service on or after July 1, 2011 in many of the pension systems now will be subject
to different cost-of-living adjustments (COLA) that is based on the increase in the Consumer Price Index (CPI) and
capped at 2.5% or 1.0% based on whether the fair value investment return for the preceding calendar year was higher or
lower than the investment return assumption used in the valuation (currently 7.40%).
A brief summary of the retirement eligibility requirements of and the benefits available under the various systems in
effect during fiscal year 2019, are as follows:
Service Retirement Allowances
A member of either the Teachers’ or Employees’ Retirement System is generally eligible for full retirement benefits
upon the earlier of attaining age 60 or accumulating 30 years of creditable service regardless of age. The annual
retirement allowance equals 1/55 (1.81%) of the member’s AFC multiplied by the number of years of accumulated
creditable service.
An individual who is a member of either the Teachers’ or Employees’ Pension System on or before June 30, 2011, is
eligible for full retirement benefits upon the earlier of attaining age 62, with specified years of eligibility service, or
accumulating 30 years of eligibility service regardless of age. An individual who becomes a member of either the
Teachers’ or Employees’ Pension System on or after July 1, 2011, is eligible for full retirement benefits if the member’s
combined age and eligibility service equals at least 90 years or if the member is at least age 65 and has accrued at least
10 years of eligibility service.
For most individuals who retired from either the Teachers’ or Employees’ Pension System on or before June 30, 2006,
the annual pension allowance equals 1.2% of the member’s AFC, multiplied by the number of years of creditable service
accumulated prior to July 1, 1998, plus 1.4% of the member’s AFC, multiplied by the number of years of creditable
service accumulated subsequent to June 30, 1998. With certain exceptions, for individuals who are members of the
Teachers’ or Employees’ Pension System on or after July 1, 2006, the annual pension allowance equals 1.2% of the
member’s AFC, multiplied by the number of years of creditable service accumulated prior to July 1, 1998, plus 1.8% of
the member’s AFC, multiplied by the number of years of creditable service accumulated subsequent to June 30, 1998.
Beginning July 1, 2011, any new member of the Teachers’ or Employees’ Pension System shall earn an annual pension
allowance equal to 1.5% of the member’s AFC multiplied by the number of years of creditable service accumulated as a
member of the Teachers’ or Employee’s Pension System.
Exceptions to these benefit formulas apply to members of the Employees’ Pension System, who are employed by a
participating governmental unit that does not provide the 1998 or 2006 enhanced pension benefits or the 2011 reformed
pension benefits. The pension allowance for those members equals 0.8% of the member’s AFC up to the social security
integration level (SSIL), plus 1.5% of the member’s AFC in excess of the SSIL, multiplied by the number of years of
accumulated creditable service. For the purpose of computing pension allowances, the SSIL is the average of the social
security wage bases for the past 35 calendar years ending with the year the retiree separated from service.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 12 - RETIREMENT PLANS (CONTINUED)
An individual who is a member of the State Police Retirement System on or before June 30, 2011, is eligible for full
retirement benefits upon the earlier of attaining age 50 or accumulating 22 years of eligibility service regardless of age.
An individual who becomes a member of the State Police Retirement System on or after July 1, 2011 is eligible for full
retirement benefits upon the earlier of attaining age 50 or accumulating 25 years of eligibility service regardless of age.
The annual retirement allowance equals 2.55% of the member’s AFC multiplied by the number of years of accumulated
creditable service and may not exceed 71.4% of the member’s AFC.
A member of the Judges’ Retirement System is eligible for full retirement benefits upon attaining age 60. The annual
retirement allowance for a member with at least 16 years of accumulated creditable service equals 2/3 (66.7%) of the
salary of an active judge holding a comparable position. The annual retirement allowance is prorated if the member
retires with fewer than 16 years of accumulated creditable service.
A member of the Law Enforcement Officers’ Pension System is eligible for full retirement benefits upon the earlier of
attaining age 50 or accumulating 25 years of eligibility service regardless of age. The annual retirement allowance for a
member who is covered under the retirement plan provisions equals 1/50 (2.0%) of the member’s AFC multiplied by the
number of years of accumulated creditable service up to 30 years, plus 1/100 (1.0%) of the member’s AFC multiplied by
the number of years of accumulated creditable service in excess of 30 years. For members subject to the pension
provisions, full service pension allowances equal 2.0% of AFC up to a maximum of 60% (30 years of credit).
Vested Allowances
Any individual who is a member of the State Retirement and Pension System on or before June 30, 2011 (other than a
judge or a legislator), and who terminates employment before attaining retirement age but after accumulating 5 years of
eligibility service is eligible for a vested retirement allowance. Any individual who joins the State Retirement and
Pension System on or after July 1, 2011 (other than a judge or a legislator), and who terminates employment before
attaining retirement age but after accumulating 10 years of eligibility service is eligible for a vested retirement
allowance. A member, who terminates employment prior to attaining retirement age and before vesting, receives a
refund of all member contributions and interest.
Early Service Retirement
A member of either the Teachers’ or Employees’ Retirement System may retire with reduced benefits after completing
25 years of eligibility service. Benefits are reduced by 0.5% per month for each month remaining until the retiree either
attains age 60 or would have accumulated 30 years of creditable service, whichever is less. The maximum reduction for
a Teachers’ or Employees’ Retirement System member is 30%.
An individual who is a member of either the Teachers’ or Employees’ Pension System on or before June 30, 2011 may
retire with reduced benefits upon attaining age 55 with a least 15 years of eligibility service. Benefits are reduced by
0.5% per month for each month remaining until the retiree attains age 62. The maximum reduction for these members of
the Teachers’ or Employees’ Pension System is 42%. An individual who becomes a member of either the Teachers’ or
Employees’ Pension System on or after July 1, 2011, may retire with reduced benefits upon attaining age 60 with at least
15 years of eligibility service. Benefits are reduced by 0.5% per month for each month remaining until the retiree attains
age 65. The maximum reduction for these members of the Teachers’ or Employees’ Pensions System is 30%.
Members of the State Police, Judges’, Law Enforcement Officers’ and Local Fire and Police Systems are not eligible for
early service benefits.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 12 - RETIREMENT PLANS (CONTINUED)
Disability and Death Benefits
Generally, a member covered under retirement plan provisions who is permanently disabled after 5 years of service
receives a service allowance based on a minimum percentage (usually 25%) of the member’s AFC. A member covered
under pension plan provisions who is permanently disabled after accumulating 5 years of eligibility service receives a
service allowance computed as if service had continued with no change in salary until the retiree attained age 62. A
member (other than a member of the Maryland General Assembly or a judge, both of which are ineligible for accidental
disability benefits) who is permanently and totally disabled as the result of an accident occurring in the line of duty
receives 2/3 (66.7%) of the member’s AFC plus an annuity based on all member contributions and interest. Death
benefits are equal to a member’s annual salary as of the date of death plus all member contributions and interest.
Adjusted Retirement Allowances
Retirement and pension allowances are increased annually to provide for changes in the cost of living according to
prescribed formula. Such adjustments for retirees are based on the annual change in the CPI. For the Teachers’ and
Employees’ Retirement Systems (TRS/ERS) the method by which the annual COLA’s are computed depends upon
elections made by members who were active on July 1, 1984 (or within 90 days of returning to service, for members who
were inactive on July 1, 1984) enabling the member to receive either an unlimited COLA, a COLA limited to 5% or a
two part combination COLA depending upon the COLA election made by the member.
Members of the State Police Retirement System (SPRS) and Law Enforcement Officers’ Pension System (LEOPS) are
eligible to participate in a Deferred Retirement Option Program (DROP). For members who enter the DROP on or after
July 1, 2011, the member is deemed retired and the retirement allowance is placed in an account earning 4% interest
per year, compounded annually. At the end of the DROP period, the lump sum held in the DROP account is paid to
the retiree. The SPRS and LEOPS members must end employment and fully retire at the end of the DROP period. The
maximum period of participation is 4 years for SPRS and 5 years for LEOPS. The amount of funds held in the DROP as
of June 30, 2019 and 2018, was $21,724,997 and $18,887,820, respectively.
However, beginning July 1, 2011, for benefits attributable to service earned on or after July 1, 2011, in all of the systems
except the judges’ and legislators’ systems, the adjustment is capped in the lesser of 2.5% or the increase in CPI if the
most recent calendar year fair value rate of return was greater than or equal to the assumed rate. The adjustment is
capped at the lesser of 1% or the increase in CPI if the fair value return was less than the assumed rate of return. In years
in which COLAs would be less than zero due to a decline in the CPI, retirement allowances will not be adjusted.
COLAs in succeeding years are adjusted until the difference between the negative COLA that would have applied and
the zero COLA is fully recovered.
Retirement allowances for legislators and judges are recalculated when the salary of an active member holding a
comparable position is increased.
Net Pension Liability
Per the actuary reports dated June 30, 2019 and 2018, the components of the net pension liability of the participating
employers were as follows:
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 12 - RETIREMENT PLANS (CONTINUED)
(expressed in thousands)
2019 2018
Total Pension Liability (TPL) $ 74,569,030 $ 72,808,833
Plan Fiduciary Net Position 53,943,420 51,827,233
Net Pension Liability $ 20,625,610 $ 20,981,600
Ratio - Fiduciary Net Position/TPL 72.34% 71.18%
Actuarial Assumptions
The actuarial assumptions presented below for 2019 were adopted pursuant to an experience study for the
period July 1, 2014 to June 30, 2018.
Inflation In the 2019 actuarial valuation, 2.65% general, 3.15% wage. In the 2018 actuarial
valuation, 2.60% general, 3.10% wage.
Salary Increases In the 2019 actuarial valuation, 3.10% to 11.6%, including inflation. In the 2018
actuarial valuation, 3.20% to 9.10%, including inflation.
Investment Rate of Return In the 2019 actuarial valuation, 7.40%. In the 2018 actuarial valuation, 7.45%.
Retirement Age Experience-based table of rates that are specific to the type of eligibility
condition. Last updated for the 2018 valuation pursuant to an experience study of
the period July 1, 2014 to July 30, 2018.
Mortality Public Sector 2010 Mortality Tables calibrated to MSRPS experience with
generational projections using MP-2018 (2-dimensional) mortality improvement
scale.
Investments
The long-term expected rate of return on pension plan investments was determined using a building-block method in
which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term
expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and
by adding expected inflation. Best estimates of geometric real rates of return were adopted by the Board of Trustees
after considering input from the System’s investment consultant(s) and actuary(s). For each major asset class that is
included in the System’s target asset allocation as of June 30, 2019, these best estimates are summarized in the following
table:
Long-Term
Expected Real Rate
Asset Class Target Allocation of Return
Public Equity 37% 6.3%
Private Equity 13% 7.5%
Rate Sensitive 19% 1.3%
Credit Opportunity 9% 3.9%
Real Assets 14% 4.5%
Absolute Return 8% 3.0%
Total 100%
The above was the Board of Trustees adopted asset allocation policy and best estimate of geometric real rates of return
for each major asset class as of June 30, 2019.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 12 - RETIREMENT PLANS (CONTINUED)
For the years ended June 30, 2019 and 2018, the annual money-weighted rate of return on pension plan investments, net
of the pension plan investment expense, was 6.44% and 8.08%, respectively. The money-weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.
Discount rate
A single discount rate of 7.40% was used to measure the total pension liability. The single discount rate was based on
the expected rate of return on pension plan investments of 7.40%. The projection of cash flows used to determine this
single discount rate assumed that plan member contributions will be made at the current contribution rate and that
employer contributions will be made at rates equal to the difference between actuarially determined contribution rates
and the member rate. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available
to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return
on pension plan investments was applied to all periods of projected benefit payments to determine the total pension
liability.
Sensitivity of the Net Pension Liability
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following presents the
plan’s net pension liability, calculated using a single discount rate of 7.40%, as well as what the plan’s net pension
liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher:
1% Decrease Discount Rate 1% Increase
System to 6.40% 7.40% to 8.40%
County $ 42,674,151 $ 29,483,317 $ 18,497,015
Board of Education 7 ,540,548 5 ,209,719 3 ,268,434
Teachers’ and Employees’ Retirement Systems and Teachers’ and Employees’ Pension Systems
Teachers’ Retirement and Pension Systems:
In accordance with Maryland Senate Bill 1301, Budget Reconciliation and Financing Act of 2012, the Board is required
to pay the State 100% of the normal cost portion of the total pension cost for teachers. The normal cost is the portion of
the total retirement benefit cost that is allocated to the current year of the employee’s service. As contractually required,
during fiscal year 2020, the Board contributed $2,282,178 to the Teachers’ Retirement and Pension System.
Employees’ Retirement and Pension Systems:
During fiscal year 2020, the Board contributed $549,684 to the Employees’ Retirement and Pension System.
Pension Liabilities, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related
to Pensions
Because the State of Maryland pays the unfunded liability for the Teachers’ Systems on behalf of the Board and Library,
and the Board pays the normal cost for the Teachers’ Systems, the Board and Library are not required to record its’ share
of the unfunded pension liability for the Teachers’ Systems, the State of Maryland is required to record that liability.
The Board is required to record a liability for the Employees’ Systems.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 12 - RETIREMENT PLANS (CONTINUED)
At June 30, 2020, the Board of Education reported a liability for its proportionate share of the net pension liability that
reflected a reduction for State pension support provided to the Board. The amount recognized by the Board as its
proportionate share of the net pension liability, the related State support, and the total portion of the net pension liability
that was associated with the Board were as follows:
Board's proportionate share of the net pension liability
(Employees' Systems) $ 5,209,719
State's proportionate share of the net pension liability
(Teachers' Systems) 58,988,379
Total $ 64,198,098
The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The County’s proportion of the net pension
liability was calculated as follows by the System(s):
1. Net pension liability for the entire System was calculated. For purposes of funding the System, all calculations
are determined on an actuarial basis and are completed through the development of rates based on two separate
asset pools, one for employees of the State of Maryland (the State) and one for the Participating Governmental
Units (“PGUs”). These pools are kept on an actuarial basis and allow for the State to fund only State employees
and PGUs to fund only PGU employees. For the accounting of the System, however, the assets of the System
are accounted in a single pool which is audited annually.
2. Determine the total contributions to the System by the State and PGUs, inclusive of any underfunding of
contributions.
3. Based on the number of participants at each Board of Education, calculate the difference between what each
Board would have contributed if they funded at the rate of all other participating governments and what the
Board actually contributed. The difference between what the Board contributed and what they would have
contributed if they funded at the rate of the other participating governments, is then added to the total
contribution to the System, to calculate the System’s adjusted contribution.
4. Calculate for each participating government, their percentage of the adjusted System contribution by dividing
the total adjusted System contribution into each primary government contribution.
5. Provide each PGU its adjusted percentage of contribution and the System’s net pension liability and other
related amounts.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 12 - RETIREMENT PLANS (CONTINUED)
At June 30, 2020, the County reported the following related to pensions:
BOARD OF
COUNTY EDUCATION
Employer's proportionate (percentage) of the collective net pension liability 0.1429452% 0.0230633%
Employer's proportionate share of the collective net pension liability $ 29,483,317 $ 5,209,719
Pension expense recognized by the employer for the year ended June 30, 2020 $ 4,537,722 $ 3,385,208
Deferred outflows of resources June 30, 2019 $ 5,724,023 $ 1,007,819
Year end June 30, 2019 contributions ( 2,935,378) (518,683)
Net difference between projected and actual investment earnings 606,139 107,105
Difference between expected and actual experience - -
Change in assumptions - -
Amortization of items allowed by GASB 68 ( 1,607,512) (409,590)
Year end June 30, 2020 contributions 3,247,222 549,684
Deferred outflows of resources June 30, 2020 $ 5,034,494 $ 736,335
Deferred inflows of resources June 30, 2019 $ 3,267,562 $ 545,810
Net difference between projected and actual investment earnings - -
Difference between actual and expected experience 296,338 5 2,363
Change in assumptions 802,399 141,785
Amortization of items allowed by GASB 68 (943,643) (282,951)
Deferred inflows of resources June 30, 2020 $ 3,422,656 $ 457,007
NPL June 30, 2019 $ 29,037,440 $ 4,839,054
Change in NPL factored for contributions 445,877 370,665
NPL June 30, 2020 $ 29,483,317 $ 5,209,719
The $3,247,222 and $549,684 of deferred outflows of resources resulting from the County and the Board’s contributions
to the Employees’ Systems subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ending June 30, 2021. Other amounts reported as deferred outflows of resources for the County will
be amortized over a five-year period, as follows:
Deferred
Outflows
June 30, (Inflows)
2021 $ 16,855
2022 (848,582)
2023 (470,226)
2024 (173,385)
2025 (160,046)
Total $ (1,635,384)
-100-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 12 - RETIREMENT PLANS (CONTINUED)
Total Covered On-Behalf
Payroll Payroll By State
County - MD Retirement and pension $ 33,340,106 $ 27,669,757 $ -
Board of Education 63,352,911 59,503,815 6,044,587
Library 1,258,415 1,258,415 185,853
Covered payroll refers to all compensation paid to active employees covered by the Systems.
Pension contributions made by the State of Maryland, on behalf of the Board of Education and the Library are
recognized as both revenue and expenditure.
NOTE 13 - DEFERRED COMPENSATION PLAN
The County offers its employees a deferred compensation plan created in accordance with Internal Revenue Code
Section 457. The Plan, available to all County employees, permits them to defer a portion of their salary until future
years. Participation in the plan is optional. The deferred compensation is not available to employees until termination,
retirement, death or unforeseeable emergency.
All amounts of compensation deferred under the plan; all property and rights purchased with those amounts; and all
income attributable to those amounts, property or rights are solely the property and rights of the participants. The
County has no liability for losses under the plan.
Investments are managed by the plan’s administrator based on several different investment options, or combinations
thereof. The choice of the investment option(s) to be used is made by each participant. The County has no management
control over the assets of the plan. Accordingly, per GASB Statement No. 32, the assets of the plan are not included in
these financial statements.
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS
Other Post-Employment Benefit Trust (OPEB Trust)
On June 23, 2009, the County enacted County Ordinance No. 09-12, which established a Trust entity entitled “Other
Post-Employment Benefit Trust – County Commissioners of Queen Anne’s County, County Commissioners of Kent
County, and Participating Agencies” (OPEB Trust). The purpose of the OPEB Trust is to: (1) fund costs of health
insurance and other post-employment benefits to eligible retirees of the primary government, the Queen Anne’s County
Board of Education, and the Queen Anne’s County Free Library; (2) accumulate and invest financial resources for this
purpose; (3) provide health insurance and other post-employment benefits for eligible retirees; and (4) provide related
administrative services.
Other agencies and political subdivisions have the right to participate in this Trust now and in the future. Such unrelated
entities may deposit funds with the Trust for investment purposes related to their OPEB plans. At June 30, 2020, funds
in the amount of $161,760 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.
-101-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Other Post-Employment Benefit Trust (OPEB Trust) (Continued)
OPEB Trustees have exclusive authority to manage the assets of the Trust. The Board of Trustees consists of five
members: two representing Queen Anne’s County Government; two representing the Queen Anne’s County Board of
Education; and one representing Kent County. In lieu of separate financial statements for the OPEB Trust, Queen
Anne’s County presents the Trust entity’s complete financial statements within this document.
In fiscal year 2015, the County Commissioners approved the County joining the MACo (Maryland Association of
Counties) Pooled OPEB Investment Trust Fund. All information presented in this note on other post-employment
benefits refer to the Trust entity entitled “Other Post-Employment Benefit Trust – County Commissioners of Queen
Anne’s County, County Commissioners of Kent County, and Participating Agencies” (OPEB Trust). A separate Trust
document for the MACo OPEB Trust can be found on the MACo website at www.mdcounties.org.
In August 2020, the “Other Post-Employment Benefit Trust – County Commissioners of Queen Anne’s County, County
Commissioners of Kent County, and Participating Agencies” (OPEB Trust) was closed and all members transferred their
respective funds to the MACo Pooled OPEB Investment Trust Fund.
PRIMARY GOVERNMENT
Plan Reporting
The measurement date for GASB 74 is the Employer’s fiscal year end, June 30, 2020. Plan assets (Fiduciary Net
Position) are measured as of this date. The Total OPEB Liability (TOL) as of this date is based on an actuarial valuation
as of January 1, 2019, with adjustments made for the one-and-a-half year difference. Adjustments include Service Cost,
Interest on Total OPEB Liability, and expected benefit payments during the year. This is also known as a roll-forward.
Under GASB 74, the Net OPEB Liability (NOL) is established as the difference between the Total OPEB Liability and
the Plan Fiduciary Net Position. The NOL is very much like the unfunded actuarial accrued liability that is developed for
the funding valuation, with adjustments for any time between the valuation date and the measurement date.
Relevant Dates
 Valuation Date: January 1, 2019
 Measurement Date: June 30, 2020
 Reporting Date: June 30, 2020
Plan Membership
The following is a summary of the plan membership as of January 1, 2019.
Active 415
Retired 172
Total 587
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.
-102-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Plan description (Continued)
The County’s Retiree Health Insurance Program provides medical insurance benefits to retirees and their eligible
dependents. The retiree and their dependents will receive a subsidy as outlined in the tables below provided that (1) the
retiree retired directly from County service with a County retirement/pension allowance, (2) has health insurance through
the County prior to retirement, (3) retired with at least 15 years of County service, and (4) the retiree elects to participate
upon retirement. Retirees who retire directly from County service with a County retirement/pension with less than 15
years of County service, who have health insurance through the County prior to retirement and who elect to participate
upon retirement are eligible for the County’s Retiree Health Insurance Program however are not eligible for a subsidy.
Medical/Drug Plan
PPO (80/20), EPO (85/15), BCA (85/15), Medicare Supplement
Eligibility
Queen Anne’s County and Library employees are eligible to continue group insurance coverage after retirement
provided that:
a. Retiring employees have coverage in effect when they stop working.
b. Retirement commences on the first of the month, following the last day they are employed.
c. An employee must have been a permanent active employee. To receive a subsidy, must have at least 15 years of
service.
d. Eligibility for Retirement:
Non-LEOPS hired on or after 7/1/2011
 Rule of 90 (age plus service is at least 90), or
 Age 65 with 10 years of service, or
 Age 60 with 15 years of service
Non-LEOPS hired before 7/1/2011
 Age 55 with 15 years of service, or
 Age 62 with 5 years of service, or
 Age 63 with 4 years of service, or
 Age 64 with 3 years of service, or
 Age 65 with 2 years of service, or
 30 years of service (regardless of age)
LEOPS
 Age 50 (no service requirement), or
 25 years of service (no age requirement)
Retiree Payment
The employer subsidy is based on service, which medical plan you are enrolled in, retirement date and location.
-103-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Plan description (Continued)
Employees who retire prior to September 2, 2011 (regardless of medical plan enrolled in)
Years of Subsidy
Service Percentage
0 - 14 0.0%
15 54.0%
16 57.6%
17 61.2%
18 64.8%
19 68.4%
20 72.0%
21 75.6%
22 79.2%
23 82.8%
24 86.4%
25 or more 90.0%
Employees who retire between September 2, 2011 and August 31, 2012
Years of
Subsidy Percentage
Service
EPO Plan PPO Plan
0 - 14 0.0% 0.0%
15 54.0% 54.0%
16 57.6% 57.1%
17 61.2% 60.2%
18 64.8% 63.3%
19 68.4% 66.4%
20 72.0% 69.5%
21 75.6% 72.6%
22 79.2% 75.7%
23 82.8% 78.8%
24 86.4% 81.9%
25 or more 90.0% 85.0%
Employees who retire on or after September 1, 2012
Years of
Subsidy Percentage
Service
EPO or BCA Plans PPO Plan
0 - 14 0.0% 0.0%
15 54.0% 54.0%
16 57.1% 56.6%
17 60.2% 59.2%
18 63.3% 61.8%
19 66.4% 64.4%
20 69.5% 67.0%
21 72.6% 69.6%
22 75.7% 72.2%
23 78.8% 74.8%
24 81.9% 77.4%
25 or more 85.0% 80.0%
-104-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Plan description (Continued)
Plan Changes Since Prior Valuation
There have been no changes in eligibility or cost sharing provisions since the prior valuation, which included the retiree
payment changes outlined above.
Actuarial Information
Actuarial assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2019, using the following actuarial
assumptions, applied to all periods included in the measurement:
 Investment Return: 6.00%, net of investment expense and including inflation
 Healthcare Trend: 6.75% initially, grading down to 4.25% ultimate
Mortality rates are based on the PUB2010G Headcount tables with Scale SSA18 applied on a generational basis.
PUB2010G Headcount tables are used for those on disability, if applicable.
Changes in Actuarial assumptions
There were no changes in actuarial assumptions since the prior year, except the change in discount rate due to an updated
fund availability analysis and the change to the Mortality tables.
Actuarial Methods for Determining Employer Contributions
The same economic and demographic assumptions are used for both funding and financial reporting purposes under
GASB 74/75.
The Entry Age method is used for accounting/GASB purposes, therefore all of the actuarial figures within this Report are
based on it. Actuarially Determined Contributions are also based on the Entry Age method, with a closed level
percentage of payroll amortization of the unfunded liability (19 years remaining).
Expected Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in
which best-estimates of expected future real rates of return (expected returns, net of pension plan investment expense and
inflation) are developed for each asset class. These ranges are combined to produce the long-term expected rate of return
by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected
inflation. This is then modified through a Monte-Carlo simulation process, by which a (downward) risk adjustment is
applied to the baseline expected return.
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset
allocation as of June 30, 2019, and the final investment return assumption, are summarized in the following table:
-105-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Expected Return (Continued)
Long-Term Expected
Asset Class Real Return - Portfolio Weight
Domestic Equity 5.75% 48%
International Funds 6.25% 13%
Fixed Income – U.S. 1.65% 33%
Global Funds 4.50% 6%
Cash Equivalents 0.40% 0%
Total Weighted Average Real Return 4.39% 100%
Plus Inflation 2.50%
Total Return w/o Adjustment 6.89%
Risk Adjustment -0.89%
Total Expected Return 6.00%
Discount Rate
The discount rate used to measure the total OPEB liability is 5.62%. The County’s funding expectations/policy is to
contribute 70% of the Actuarially Determined Contribution in fiscal year 2020, then increase this percentage 10% each
year until the actuarial cost is being contributed in full annually. It is expected that benefits will be paid from the trust
when a 50% funding level is reached. Based on this information, we project that benefits will be financed on a pay as
you go basis until 2030, then from the trust there forward.
Therefore, the expected trust return of 6.00% is blended with the 20-year Aa bond rate* of 2.45%. The blended rate is
5.62%. The prior rate was 5.66%.
*Source: Fidelity general obligation municipal bond index.
Net OPEB Liability
Sensitivity of the net OPEB liability to changes in the discount rate
The following presents the net OPEB liability of the plan, calculated using the current discount rate, as well as what the
net OPEB liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher:
DISCOUNT RATE
1% Decrease to Discount Rate 1% Increase to
System 4.62% 5.62% 6.62%
Net OPEB liability 64,787,221 53,108,045 43,865,081
Sensitivity of the net OPEB liability to changes in the trend rate
The following presents the net OPEB liability of the plan, calculated using the current health care trend rate, as well as
what the net OPEB liability would be if it were calculated using a health care trend rate that is 1% point lower or 1%
point higher:
HEALTH CARE TREND
1% Decrease to Discount Rate 1% Increase to
System 3.25% 4.25% 5.25%
Net OPEB liability 42,747,644 53,108,045 66,451,476
-106-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 14 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Net OPEB Liability (Continued)
Changes in the net OPEB liability are as follows:
Total OPEB Liability ("TOL")
Service cost $ 1,331,424
Interest 3,344,770
Changes in benefit terms -
Difference between expected and actual experience -
Changes in assumptions 426,582
Benefit payments (1,561,872)
Net change in total OPEB liability 3,540,904
Total OPEB liability - beginning of year 58,533,634
Total OPEB liability - end of year $ 62,074,538
Plan Fiduciary Net Position ("PFNP")
Contributions - employer $ 3,378,771
Contributions - member -
Net investment income 129,710
Benefit payments (1,561,872)
Admin expenses (3,553)
Other -
Net change in plan fiduciary net position 1,943,056
Plan fiduciary net position - beginning of year 7,023,437
Plan fiduciary net position - end of year 8,966,493
Net OPEB liability ("NOL") - beginning of year 51,510,197
Net OPEB liability - end of year $ 53,108,045
PFNP as a % of TOL 14.4%
Covered employee payroll 25,806,124
NOL as a % of covered payroll 205.8%
-107-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
OPEB Expense
The amount of OPEB expense recognized in the reporting period are as follows:
Service cost $ 1,331,424
Interest on total OPEB liability 3,344,770
Difference between expected and actual experience* 81,728
Changes in actuarial assumptions* 178,652
Employee contributions -
Changes in benefit terms -
Projected earnings on plan investments (423,512)
Difference between projected and actual earnings* 57,760
Administrative expense 3,553
Other changes in fiduciary net position -
Total OPEB expense $ 4,574,375
* - portions recognized for expense
Deferred Inflow/Outflow Summary
The deferred outflows / inflows are as follows:
Deferred Deferred
Outflows Inflows
June 30, 2019 $ 1,687,557 $ (21,678)
Difference between expected and actual experience - -
Changes in actuarial assumptions 426,582 -
Net difference between projected and actutal earnings on investments 293,802 -
Amortization of items allowed by GASB 75 (323,560) 5,420
June 30, 2020 $ 2,084,381 $ (16,258)
Net deferred outflows / (inflows) will be amortized as follows:
2021 $ 3 18,140
2022 318,141
2023 313,722
2024 319,142
2025 260,380
Thereafter 538,598
Total $ 2,068,123
-108-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS
BOARD OF EDUCATION
Plan description
The Board of Education of Queen Anne’s County administers a single-employer defined benefit healthcare plan (“the
Plan”). The plan provides healthcare insurance for eligible retirees and their spouses through the Board’s group health
insurance plan, which covers both active and retired members. The Plan does not issue a stand-alone report. Benefit
provisions are based on contractual agreements with employee groups. Employees are eligible to participate in the Plan
upon retirement. Participants must meet the eligibility requirements of the Maryland State Teachers’ pension system
described below:
For members hired before July 1, 2011, the earliest retirement eligibility is the earlier of:
 Age 55 with 15 years of service,
 Age 62 with 5 years of service,
 Age 63 with 4 years of service,
 Age 64 with 3 years of service,
 Age 65 with 2 years of service, or
 30 years of service, regardless of age.
For members hired after July 1, 2011, the earliest retirement eligibility is the earlier of
 Rule of 90 (age plus service is at least 90),
 Age 65 with 10 years of service,
 Age 60 with 15 years of service
As of July 1, 2018, the date of the last actuarial valuation, approximately 395 retirees were receiving benefits, and 951
active employees are potentially eligible to receive future benefits.
Funding Policy
The Board pays a portion of retiree healthcare premiums based on years-of-service ranging from 5 years of service to
25+ years of service until the retiree becomes Medicare-eligible. The retiree pays the remaining premium, including the
cost of eligible dependents. Pre-Medicare retirees may choose between two medical plans (a PPN plan and an EPO plan).
Both plans include medical and prescription benefits. Once a participant is Medicare eligible, the participant must switch
to a Medicare supplement plan, which is also packaged with a prescription plan. Retirees have the option of electing
dental and vision coverage in addition to medical coverage.
Employer Contribution
Retirees receive a subsidy for their post-retirement medical insurance based on service. The subsidy requires a minimum
of 5 years of service for Administration and 10 years of service for Teachers. For teachers, once ten years of service is
reached, the Board covers 36% of the cost of the individual’s EPO health plan. The percentage subsidized by the Board
increases 3.6% per year for every year of service in excess of ten. At 25 years of service, the maximum subsidy of 90%
is reached. For administrators, once five years of service is reached, the Board covers 35% of the cost of the individual’s
EPO health plan. The percentage subsidized by the Board increases 5.5% per year for every year of service in excess of
five. At 15 years of service, the maximum subsidy of 90% is reached. Retirees with less than the minimum years of
service required to receive a subsidy are allowed access to the medical coverage, but must pay 100% of the published
rates. In addition, the Board is contractually obligated to pay the full cost of medical insurance for certain retired
directors, superintendents, and their spouses.
-109-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
BOARD OF EDUCATION (CONTINUED)
Employer Contribution (Continued)
The Board also pays the cost of providing term life insurance for its retirees in varying amounts depending upon length
of service and date of retirement. The benefits payable upon death are $5,000 (fixed) for 5 to 25 years of service or
$50,000 (maximum-based on annual salary at retirement) for over 25 years of service. There is a reduction of benefit of
25% at age 70 and a benefit reduction of 33.3% at age 75 and beyond.
Net OPEB Liability
The annual OPEB expense under GASB Statement No. 75 is equal to the change in the unfunded actuarial accrued
liability from the prior year’s measurement date to the current year measurement date, with some of the liability changes
being deferred to future years. Changes in the actuarial accrued liability due to experience gains or losses or changes in
assumptions are recognized over the expected future working lifetime of all plan participants, including retirees. For the
fiscal year ended June 30, 2020, the Board recognized an OPEB expense of $16,372,572.
The Board’s total OPEB liability is an amount actuarially determined in accordance with the parameters of GASB
Statement No. 75. The total OPEB liability is calculated using a measurement date of June 30, 2019. Therefore, plan
information for the year ended June 30, 2019 is utilized. The following table shows the components of the Board’s total
and net OPEB liability at June 30, 2019.
Total OPEB Liability
Service cost $ 8 ,724,099
Interest 6 ,965,488
Changes in benefit terms -
Difference between expected and actual experience (1,264,525)
Changes in assumptions 1 9,302,980
Benefit payments (2,527,028)
Net change in total OPEB liability 3 1,201,014
Total OPEB liability - beginning of year 1 94,312,559
Total OPEB liability - end of year (a) $ 2 25,513,573
Plan Fiduciary Net Position ("PFNP")
Contributions - employer $ 2 ,527,028
Net investment income 7,297
Benefit payments (2,527,028)
Admin expenses -
Net change in plan fiduciary net position 7,297
Plan fiduciary net position - beginning of year 5 08,532
Plan fiduciary net position - end of year (b) 5 15,829
Net OPEB liability - end of year (a-b) $ 2 24,997,744
Payments have typically been liquated from the General Fund in prior years.
-110-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
BOARD OF EDUCATION (CONTINUED)
Funding Status and Funding Progress
Contributions to the plan are made as benefit payments and expenses become due. As of June 30, 2019, the plan was
0.23% funded. The total OPEB liability for benefits was $225,513,573 and plan assets at fair value totaled $515,829,
resulting in a net OPEB liability of $224,997,744. The covered employee payroll was $57,590,119, and the ratio of the
net OPEB liability to the covered payroll was 390.69%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the
probability of occurrence of events far into the future. Examples include assumptions about future employment,
mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual
required contributions of the employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of net OPEB liability, presented as required
supplementary information following the notes to the financial statements, presents multiyear trend information about
whether the net OPEB liability is increasing or decreasing over time relative to the total OPEB liability for benefits.
Additional information as of the latest actuarial valuation is as follows:
 Measurement date – The Board selected a June 30, 2019 measurement date for fiscal year-end 2020. The
measurement date can be any date between the last day of the prior fiscal year and the last day of the current
fiscal year.
 Cost method – This valuation uses the Entry Age Normal Funding Method calculated on an individual basis
with level percentage of payroll.
 Claims data – Monthly paid claims, administrative expenses and enrollment for employees and retirees from
February 1, 2015 through January 31, 2018 were supplied by the carrier. Claims were divided into pre and post
65 age retirees.
 Demographic data – Data included current medical coverage for current employees and retirees as of July 1,
2018.
 Discount rate assumption - Benefits are discounted based on the Bond Buyer GO 20-year Bond Municipal
Bond Index, an index rate for 20-year tax exempt general obligation municipal bonds with an average rating of
AA/Aa or higher. This rate was 3.13% as of June 30, 2019.
 Health care trend – The medical trend assumption was developed using the Society of Actuaries (SOA) Long-
Run Medical Cost Trend Model. The SOA model was released in December 2007 and is updated annually. The
following assumptions were used as input variables into this model:
Rate of Inflation 2.2%
Rate of growth in real income / GDP per year 1.6%
Excess medical cost growth 1.3%
Health Share of GDP Resistance Point 25.0%
Year for limiting cost growth to GDP growth 2075
 Salary Scale – State of Maryland salary scale assumption for teachers.
-111-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
BOARD OF EDUCATION (CONTINUED)
Funding Status and Funding Progress (Continued)
 Decrement Assumptions –
Healthy PubT.H-2010 Mortality Table (teacher, headcount-weighted),
Fully Generational, Projected using Scale MP-2018 and base year 2010
Disability RP 2014 Disabled Mortality with Males Set Forward One Year
Sensitivity of the Net OPEB Liability
The following table presents the Board’s net OPEB liability at June 30, 2019 using the discount rate of 3.13%, as well as
what the net OPEB liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher
than the current rate:
Board's Net OPEB
Discount Rate Liability
1% decrease 2.13% $ 2 72,401,301
Current discount rate 3.13% $ 2 24,997,744
1% increase 4.13% $ 1 87,875,307
The following table presents the Board’s net OPEB liability at June 30, 2019 using the health care trend rate of 3.80%,
as well as what the net OPEB liability would be if it were calculated using a trend rate that is 1% point lower or 1% point
higher than the current rate:
Health Care Board's Net OPEB
Trend Rate Liability
1% decrease 2.80% $ 1 82,426,249
Current trend rate 3.80% $ 2 24,997,744
1% increase 4.80% $ 2 82,602,245
Deferred Inflows/Outflows of Resources related to OPEB
At June 30, 2020, the Board reported deferred outflows of resources and deferred inflows of resources related to the
OPEB plan from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Changes in actuarial assumptions $ 22,730,716 $ (17,713,165)
Net difference between projected and actual investment
earnings on OPEB plan investments - (6,816)
Amortization of items allowed by GASB 75 3,212,418 (1,431,885)
Total $ 25,943,134 $ (19,151,866)
-112-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
BOARD OF EDUCATION (CONTINUED)
Deferred Inflows/Outflows of Resources related to OPEB (Continued)
Amounts reported as differences between projected and actual earnings on OPEB plan investments will be amortized and
expensed over a closed five-year period. Amounts reported as differences between expected and actual experience will
be amortized and expensed over a period equal to the average remaining service lives of all employees that are provided
with other post-employment benefits through the plan. Amounts reported as changes in assumptions will be amortized
and expensed over a period equal to the average remaining service lives of all employees that are provided with other
post-employment benefits through the plan. Amortization expense related to net deferred inflows and outflows of
resources over the next five years is expected to be as follows:
Year End
June 30,
2021 $ 6 82,985
2022 6 82,983
2023 6 83,167
2024 6 83,369
2025 6 84,830
Thereafter 3 ,373,934
$ 6 ,791,268
Changes in assumptions in the most recent actuarial valuation included adjusting the discount rate to the updated index
rate for 20-year tax exempt general obligation municipal bonds.
LIBRARY
Plan description
The Library participates in an agent multiple-employer defined benefit healthcare plan (“the Plan”) that covers retired
employees of Queen Anne’s County, the Queen Anne’s County Board of Education, and the Library. A Trust entity was
established in June 2009 entitled Other Post- Employment Benefit Trust – County Commissioners of Queen Anne’s
County, County Commissioners of Kent County, and Participating Agencies (the “Trust”).
Unrelated agencies and political subdivisions have the right to participate in this Trust and deposit funds for investment
purposes. Accordingly, funds are being held in the Trust on behalf of Kent County, Maryland for the benefit of their plan
participants.
The Trust assets are managed by a Board of Trustees consisting of five members: two representing Queen Anne’s
County Government, two representing Queen Anne’s County Board of Education, and one representing Kent County. In
lieu of separate financial statements for the Trust, Queen Anne’s County presents the Trust entity’s complete financial
statements in their Combined Annual Financial Report.
Benefits provided
The plan reimburses eligible retirees for a portion of healthcare insurance based on years-of-service ranging from $3,000
for 15 years of service to $4,400 for 25 plus years of service. The retiree pays the remaining premium, including the cost
of eligible dependents. Participants must meet the eligibility requirements of the State Retirement and Pension System of
Maryland, which are age 55 with 15 years of service, age 62 with 5 years of service, or 30 years of service (regardless of
age).
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
LIBRARY (CONTINUED)
Employees covered by benefit terms
The following is a summary of plan membership as of January 1, 2019.
Number of participants
Active 15
Retired 6
Total 21
Contributions
The Library pays retiree healthcare benefits on a pay-as-you-go basis. For the year ended June 30, 2020, the Library
contributed $24,652.
Net OPEB liability
The Library's net OPEB liability was measured as of June 30, 2020, and the total OPEB liability used to calculate the net
OPEB liability was determined by an actuarial valuation January 1, 2020.
Actuarial assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2020, using the following actuarial
assumptions, applied to all periods in the measurement:
Healthcare trend – Because this is a flat dollar plan and retirees secure their own insurance, the trend is
not applicable.
Mortality rates are based on PUB2010G Headcount tables with Scale SSA18 applied on a generational basis. PUB2010G
Headcount Disabled tables are used for those on disability, if applicable.
There were no changes in actuarial assumptions since the prior year, except the change in discount rate due to an updated
fund availability analysis and the change to the mortality tables.
Actuarial methods for determining employer contributions use the same economic and demographic assumptions for
both funding and financial reporting purposes under GASB 74/75. The Entry Age method is used for accounting/GASB
purposes, therefore all of the actuarial figures within this report are based on it. Actuarially Determined Contributions are
based on the Entry Age method, with a closed level percentage of payroll amortization of the unfunded liability (10 years
remaining).
Discount rate
The discount rate used to measure the total OPEB liability is 2.45%. There is essentially no prefunding of benefits in an
OPEB trust for this plan (i.e., pay as you go), therefore the discount rate is equal to the yield on a 20-year municipal
bond Aa index as of June 30, 2020. The prior rate was 3.13%.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
LIBRARY (CONTINUED)
Changes in the net OPEB liability
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Contributions - employer $ - $ 24,652 $ (24,652)
Service cost 9,046 - 9,046
Investment income 24,513 359 2 4,154
Changes in assumptions 71,860 - 7 1,860
Benefit payments, including refunds ( 24,652) (24,652) -
Net change in total OPEB liability 80,767 359 8 0,408
Net OPEB obligation, beginning of year 786,356 30,950 7 55,406
Net OPEB obligation, end of year $ 867,123 $ 31,309 $ 8 35,814
Sensitivity of the net OPEB liability to changes in the discount rate
The following presents the net OPEB liability of the Library, as well as what the net OPEB liability would be if it were
calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount
rate:
1% Decrease (1.45%) $ 953,452
Current discount rate (2.45%) $ 835,814
1% Increase (3.45%) $ 738,627
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rate
Because the benefits from this plan are a fixed dollar amount based on years of services and there is no implicit subsidy
(retirees secure their own health insurance), a change in assumed trend rate will not have an impact on the OPEB
liability.
OPEB expense and deferred outflows of resources related to OPEB
For the year ended June 30, 2020, the Library recognized an OPEB expense of $74,782. At June 30, 2020, the Library
reported deferred outflows of resources related to the OPEB plan from the following sources:
Deferred
Outflows of
Resources
Difference between expected and actual experience $ 47,028
Changes in actuarial assumptions 212,467
Net difference between projected and actual earnings
on plan investments 1,927
$ 261,422
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
LIBRARY (CONTINUED)
Amounts reported as deferred outflows and deferred inflows of resources related to the OPEB plan will be recognized in
expense over a period ranging from five to nine years as follows:
Year Ended
June 30 Outflows
2021 $ 42,461
2022 42,461
2023 42,086
2024 41,927
2025 41,927
Thereafter 50,560
Total $ 261,422
NOTE 15 – VOLUNTEER FIREMAN PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM
(LOSAP)
Plan Description
The County established the County Fire and EMS Commission Pension Plan Length of Service Award Program
(“LOSAP”) in November 2004. The LOSAP is a single-employer defined benefit length of service award program that
covers all volunteer members (“members”) of the County’s Fire and EMS Commission. The LOSAP has no assets
accumulated in a trust that meet the criteria in GASB 73, paragraph 4. The LOSAP is funded entirely by the general
fund.
Relevant dates
 Valuation date: January 1, 2019
 Measurement date: December 31, 2019
 Reporting date: June 30, 2020
An active member, upon reaching 55 years of age, is eligible to receive $6 per month for each year of eligible service,
with a $240 maximum monthly benefit that may be earned. An inactive member that reaches 65 years of age and is
vested with 5 years of service is also entitled to the same benefits ($6/month for each year of service, maximum $240 per
month). An inactive life member with 20-plus years of service is entitled to the same benefits at 55 years old. Insured
participants’ designated beneficiary shall receive the greater of $25,000 face amount of the life insurance or the present
value of the participants’ accrued benefit. Non-insured participants’ designated beneficiary shall receive the lump sum
of the present value of the participants’ accrued benefit.
The participant summary as of the January 1, 2019 actuarial valuation is as follows:
Active members 2 76
Vested-terminated 1 43
Retired and beneficiaries 1 64
TOTAL 5 83
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 15 – VOLUNTEER FIREMAN PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM
(LOSAP) (CONTINUED)
Actuarial Assumptions
The total LOSAP liability was determined by an actuarial valuation as of January 1, 2019 rolled forward to December
31, 2019 using the following actuarial assumptions, applied to all periods included in the measurement.
Inflation 0.00%
Salary increases Not Applicable
Investment rate of return 2.75%, net of pension plan investment expense, including inflation
Mortality No pre-retirement mortality; post retirement RP2000 projected to 2030
Retirement First eligible
Turnover T5
Disability None
The 2.75% discount rate is based on a 20-year AA general obligation bond rate as of December 31, 2019.
The above is a summary of key actuarial assumptions. Full description of actuarial assumptions are available in the
January 1, 2019 actuarial valuation report.
Sensitivity of Total LOSAP Liability
The following presents the total LOSAP liability, calculated using single discount rate of 2.75%, as well as what the total
LOSAP liability would be if it were calculated using a discount rate that is 1% point lower and 1% point higher.
DISCOUNT RATE
1% Decrease to Discount Rate 1% Increase to
1.75% 2.75% 3.75%
Net LOSAP liability 8,621,728 8,048,034 7,461,503
Total LOSAP Liability
The components of the total LOSAP liability are as follows:
Plan
Total LOSAP Fiduciary Net Net LOSAP
Liability Position Liability
Balances at 1/1/19 $ 6,669,736 $ - $ 6,669,736
Changes for the year:
Service cost 215,978 - 215,978
Interest 180,529 - 180,529
Changes of benefit terms - - -
Differences between expected and actual experience ( 78,468) - ( 78,468)
Changes of assumptions 1 ,280,343 - 1,280,343
Benefits payments and expenses (220,084) - (220,084)
Net changes 1 ,378,298 - 1,378,298
Balances as of 12/31/19 $ 8,048,034 $ - $ 8,048,034
Plan fiduciary net position as a percentage of the total pension liability 0%
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 15 – VOLUNTEER FIREMAN PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM
(LOSAP) (CONTINUED)
LOSAP Expense
The components of LOSAP expense are as follows:
LOSAP
Expense
Service cost $ 2 15,978
Interest 180,529
Projected earnings on LOSAP Trust -
Changes in benefit terms -
Differences between expected and actual earnings -
Differences between expected and actual experience (1,912)
Changes of assumptions 303,220
Total LOSAP expense $ 6 97,815
LOSAP Deferred Outflows and Deferred Inflows of Resources
The components of LOSAP deferred outflows and deferred inflows are as follows:
Deferred Deferred
Outflows Inflows
June 30, 2019 $ 5 09,398 $ (442,699)
Difference between expected and actual experience - (78,468)
Changes of assumptions 1 ,280,343 -
Net difference between projected and actual earnings - -
Amortization of items allowed by GASB 75 (366,191) 64,883
Contributions subsequent to 12/31/19 - -
June 30, 2020 $ 1,423,550 $ (456,284)
Amounts reported as deferred outflows and deferred inflows will be amortized as follows:
Deferred
Outflows
June 30, (Inflows)
2021 $ 301,308
2022 301,308
2023 301,307
2024 204,968
2025 (35,407)
Thereafter (106,218)
Total $ 9 67,266
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 16 – DEFICIT EQUITY BALANCES
The following Non-Major Governmental Funds ended the year with deficit balances in unassigned fund balance:
Capital Projects – Fire Company Impact Fees Fund
The Capital Projects – Fire Company Impact Fees Fund has a negative unassigned fund balance of $24,133 as of June
30, 2020. This negative fund balance is the result of an overpayment to a particular fire department and will decrease
over time as the incoming revenues offset the overpayment.
The following Enterprise Funds ended the year with deficit equity balances:
Bay Bridge Airport Enterprise Fund
The Bay Bridge Airport Enterprise Fund has a deficit balance in unrestricted net position of $1,360,837 as of June 30,
2020.
Golf Course Enterprise Fund
The Golf Course Enterprise Fund has a deficit balance in unrestricted net position of $801,356 as of June 30, 2020.
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 17 - 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, 2020 may be impaired. The County’s management believes that there are no significant
contingent liabilities that must be recorded relating to compliance with the rules and regulations governing these
programs. No funds were required to be returned in fiscal year 2020.
Further, certain grants for capital projects, such as various park projects funded by the State, must be used for the
intended purpose of the grant. If, at any time during the useful lives of these projects, the facilities cease to operate in
their intended capacity, the County may be required to reimburse the granting agency that portion of the grant or note
that is equal to the percentage of useful life remaining. The County’s Management believes that no such grant
reimbursements will be needed.
In fiscal year 2010, the County’s Department of Housing and Community Services received a grant of $350,000 from the
Maryland Department of Housing and Community Development. This Maryland Neighborhood Conservation Initiative
(NCI) Grant provided funding to be used for the acquisition and purchase of foreclosed properties for resale to qualifying
homebuyers, as well as the issuance of zero percent deferred payment loans to eligible critical service workers. Per the
terms of the agreement, the grantee may reuse funds for these same activities until June 30, 2013. Funds returned to the
County from program participants after June 30, 2013 must be returned to the state. Therefore, this grant has been
recorded as a pass-through grant, with the County contingently liable for the return of these funds to the state at some
point in time after June 30, 2013. During Fiscal Year 2014, the County identified $69,569 in funds that were required to
be returned to the grantor per grant provisions. No funds were required to be returned in fiscal years 2015 thru 2020.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 17 - COMMITMENTS AND CONTINGENCIES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
In accordance with the provisions of GASB Statement 54, Fund Balance Reporting and Governmental Fund Type
Definitions, the County has committed certain fund balances for future construction projects. In the General Capital
Projects Fund, a total of $2,680,215 has been committed, including $1,048,242 for Economic Development, $939,883
for site improvements pursuant to agreements with local developers, and $692,090 for rubble surcharge. In the Roads
Capital Projects Fund, $570,966 has been contributed by developers and is committed to fund infrastructure
improvements.
Income Tax Contingency - On May 18, 2015, the Supreme Court of the United States decided against the State of
Maryland in Comptroller of the Treasury of Maryland v. Wynne Et Ux. Under state law, residents who pay income tax
to another state for income earned in that other state are allowed a credit against their Maryland state income tax but not
against the so-called piggy-back tax of the county or municipality where they reside. Plaintiffs argued that not granting a
credit against the local income tax is a violation of the U.S. Constitution. By a 5 to 4 vote, the Supreme Court found for
the plaintiffs holding generally that the state law violates what is known as the Dormant Commerce Clause. This
decision means that Maryland counties, including Queen Anne’s County, need to reserve funds against refund claims by
certain taxpayers (particularly S corporation shareholders) dating back to Tax Year 2007. The County estimates that it
needs to reserve $806,682 against these potential claims. The County plans to use $806,682 in existing reserves to
finance such claims. The County estimates that future loss of revenues as a result of the Wynne Case will be absorbed
through the normal budgeting process.
Based on the findings, Queen Anne’s County reduced the receivable from the State for income taxes and the offsetting
deferred inflows by the estimated fiscal impact for the County for tax years going back to 2007 which totaled $806,682
including interest. The adjustment does not change the total fund balance for the General Fund. Since the County
already received the money in income taxes in prior years, the amount of anticipated liability for the Wynne Case impact
on the County is assigned in the General Fund. When the State begins taking the funds back, the County will release the
amount from the assigned fund balance. The amount of anticipated liability is based on assessments provided by the
Maryland Comptroller’s Office and the County believes these figures to be within reason.
Under Maryland law, taxpayers are generally eligible for interest on certain tax refunds calculated at an annual rate of
interest equal to the greater of (i) three percentage points above the average prime rate of interest or (ii) 13%. In 2014,
the Maryland General Assembly adopted legislation that set the annual interest rate for an income tax refund that is a
result of the final decision under the Wynne case to a percent equal to the average prime rate of interest. This legislation
substantially lowers the interest rate on tax refunds due as a result of the Wynne decision. Further, the legislation was
intended to be effective retroactively. On November 13, 2015, lawyers for Michael J. Holzheid filed a class action
complaint, Michael J. Holzheid v. Comptroller of the Treasury of Maryland, et al, in the Circuit Court for Baltimore City
challenging the state legislation. Other taxpayers may also file claims or appeals challenging the state legislation. If
such claims or appeals are successful, the estimated amount of interest on refunds owed by the County would increase.
NOTE 18 – JOINT VENTURE
In 1991, the County Commissioners, in conjunction with Talbot, Caroline, and Kent Counties, entered into a regional
partnership known as the Midshore Regional Landfill Joint Venture. This venture was formed to provide a long-term,
solid waste management solution for the four-county area. As part of the agreement, each of the four Counties agreed to
host a solid waste facility for a twenty-year period, giving the venture a total duration of eighty years. In 1991, the
Midshore Regional Landfill opened in Talbot County and served the waste management needs of the four-County area
for twenty years. This facility, owned and operated by the Maryland Environmental Service (MES), closed on December
31, 2010. The second Midshore facility, Midshore II, opened in Caroline County in January 2011 and is fully
operational. After the facility in Caroline County reaches capacity, another landfill will be constructed in Queen Anne's
County, with Kent County to follow in turn. Each County is required to, and has, set aside sufficient land to construct a
landfill within their borders. The agreement expires when the last of the four landfills is closed.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 18 – JOINT VENTURE (CONTINUED)
Queen Anne’s County has a 34.45% financial interest in the Midshore Regional Landfill. If 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, 2020, total closure
and post closure costs for Midshore I was estimated at approximately $1.3 million. Midshore II, located in Caroline
County, was 27.23% filled. Closure and post closure costs for Midshore II are estimated at approximately $16.8 million.
Therefore, the total closure and post closure costs for both landfills are $18.4 million, with approximately $6.4 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 $6.2 million as of June 30,
2020, 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 $25.0 million. As of June 30, 2020,
$8.6 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 $357,635 in
tipping fees to the facility during fiscal year 2020.
MES has satisfied its financial assurance requirements based upon the local government financial ratio tests of the
project participants as of June 30, 2020. MES expects to satisfy these requirements as of June 30, 2021 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 19 – POLLUTION REMEDIATION OBLIGATIONS
During fiscal year 2009, the County implemented the provisions of Governmental Accounting Standards Board (GASB)
Statement 49, Accounting and Financial Reporting for Pollution Remediation Obligations.
During a prior fiscal year, 2003, the County agreed to a voluntary Methyl Tertiary Butyl Ether (MTBE) testing program
for underground fuel tanks located at the County’s Department of Public Works’ fuel depot. This testing program was
and still is approved by the Maryland Department of Environment (MDE).
Since the testing program began in 2003, the County has incurred a total of $448 thousand in expenses, including $14
thousand in fiscal year 2020, to comply with the provisions of the program. Costs covered remediation work and
consulting fees; the latter for testing, studies, and monitoring. Remediation efforts included demolition and removal of
the existing fuel depot at the Public Works Centreville Shop; remediation of the soils via excavation; offsite controlled
disposal and backfill; installation of monitoring wells; in situ chemical oxidation and dual phase extraction; attorney’s
fees and miscellaneous environmental consulting services.
In May 2010, MDE requested the County devise a Corrective Action Plan (CAP) to address contamination concerns at
the fuel depot site. In August 2010, MDE approved the County’s CAP work which included the installation of additional
monitoring wells and one year of monitoring, sampling, testing and furnishing of those reports to MDE.
In December of 2014, a leak was discovered at the 10,000 gallon fuel oil UST for the office building. MDE required the
removal of the tank and mitigation of the contaminated soils and ground water. The tank has been replaced with a
compliant above ground 1,500 gallon fuel oil storage tank. This work was completed, including compliant disposal of
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE 19 – POLLUTION REMEDIATION OBLIGATIONS (CONTINUED)
all soils by May 2015. MDE subsequently directed the County to install two additional monitoring wells and to abandon
the former injection wells on-site.
During fiscal year 2020, the County and MDE met to again review the project data. Last year, MDE dictated that the
County would need to install three additional monitoring wells upstream (NE) to the existing wells, soil sampling and
disposal, and initial ground water sampling. These wells have been monitored quarterly by Chesapeake Geosciences for
the past year. The presence of LPH in MW-2A continues to be monitored, fluctuates in depth, and currently appears to
be recoverable only in minimal amounts. The County is to continue with the approved MDE monitoring program. In
addition, Chesapeake Geosciences will collect samples, test and provide reports both quarterly for the new (3) wells and
bi-annual for the existing (9) wells. The County will continue discussions with MDE regarding the project closeout at the
end of the first year schedule associated with the new monitoring wells.
The estimated costs over the next year are not material, and thus no liability has been recorded at this time. None of
these outlays met the requirements for capitalization noted in GASB Statement 49 and they were not capitalized.
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Required Supplementary Information
-123-

QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2020
MARYLAND STATE RETIREMENT AND PENSIONS SYSTEMS
SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (as of measurement
date)
Plan's
Fiduciary
Employer's Employer's Proportionate Net Position
Proportion Proportion Share Plan's as a
(Percentage) Share Employer's as a Total Plan's Percentage
of the of the Covered Percentage Fiduciary Total of Total
Measurement Collective Collective Employee of Covered Net Pension Pension
Date NPL NPL Payroll Payroll Position Liability Liability
A B C (B / C) D E (D / E)
June 30, 2014 0.1038567% $ 18,431,162 $ 19,929,409 92% $ 45,339,988,000 $ 63,086,719,000 72%
June 30, 2015 0.1189567% 2 4,721,248 2 1,231,535 116% 45,789,840,000 66,571,552,000 69%
June 30, 2016 0.1271511% 3 0,000,070 2 3,160,758 130% 45,365,927,000 68,959,954,000 66%
June 30, 2017 0.1232988% 2 6,661,766 2 4,681,589 108% 48,987,184,000 70,610,885,000 69%
June 30, 2018 0.1383948% 2 9,037,440 2 6,088,826 111% 51,827,233,000 72,808,833,000 71%
June 30, 2019 0.1429452% 2 9,483,317 2 6,185,838 113% 53,943,420,000 74,569,030,000 72%
SCHEDULE OF CONTRIBUTIONS (as of fiscal year end)
Actual
Contribution
Employer's as a
Contractually Contribution Covered Percentage
Fiscal Required Actual Deficiency Employee of Covered
Year Contribution Contribution (Excess) Payroll Payroll
A B (A - B) C (B / C)
2015 $ 2,507,287 $ 2,507,287 $ - $ 21,231,535 12%
2016 2,477,009 2,477,009 - 2 3,160,758 11%
2017 2,509,551 2,509,551 - 2 4,681,589 10%
2018 2,759,698 2,759,698 - 2 6,088,826 11%
2019 2,935,378 2,935,378 - 2 6,185,838 11%
2020 3,247,222 3,247,222 - 2 7,669,757 12%
Both schedules above are presented to illustrate the requirements to show information for 10 years. However, until full
10-year trends are compiled, pension plans should present information for those years for which the information is
available.
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QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2020
MARYLAND STATE RETIREMENT AND PENSIONS SYSTEMS (CONTINUED)
ACTUARIAL ASSUMPTIONS – PENSION PLAN
Changes in Benefit Terms
There were no benefit changes during the year.
Changes in Assumptions
Discount rate changed from 7.50% to 7.40%.
Method and Assumptions used in Calculations of Actuarially Determined Contributions
Actuarial Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period 25-year closed amortization period ending June 30, 2039; 19 years remaining.
Asset Valuation Model Five-year smoothed market (max. 120% and min 80% of the market value)
Inflation In the 2019 actuarial valuation, 2.65% general, 3.15% wage. In the 2018 actuarial
valuation, 2.60% general, 3.10% wage.
Salary Increases In the 2019 actuarial valuation, 3.10% to 11.6%, including inflation. In the 2018
actuarial valuation, 3.20% to 9.10%, including inflation.
Investment Rate of Return In the 2019 actuarial valuation, 7.40%. In the 2018 actuarial valuation, 7.45%.
Retirement Age Experience-based table of rates that are specific to the type of eligibility condition.
Last updated for the 2018 valuation pursuant to an experience study of the period July
1, 2014 to July 30, 2018.
Mortality Public Sector 2010 Mortality Tables calibrated to MSRPS experience with
generational projections using MP-2018 (2-dimensional) mortality improvement
scale.
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QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2020
OTHER POST-EMPLOYMENT BENEFITS TRUST
The following required supplementary information relates to the OPEB plan described in Note 14. This information is
intended to help users assess the system’s funding status on a going-concern basis; assess progress made in accumulating
assets to pay benefits when due; and make comparisons among employers.
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY
2017 2018 2019 2020
Total OPEB Liability ("TOL")
Service cost $ 1,097,813 $ 1,130,747 $ 1,164,669 $ 1,331,424
Interest 2,764,491 2,985,530 3,136,157 3,344,770
Changes in benefit terms - - - -
Difference between expected and actual experience - - 735,549 -
Changes in assumptions - 265,899 915,266 426,582
Benefit payments ( 1,291,027) ( 1,498,005) ( 1,568,468) ( 1,561,872)
Net change in total OPEB liability 2,571,277 2,884,171 4,383,173 3,540,904
Total OPEB liability - beginning of year 48,695,013 51,266,290 54,150,461 58,533,634
Total OPEB liability - end of year $ 51,266,290 $ 54,150,461 $ 58,533,634 $ 62,074,538
Plan Fiduciary Net Position ("PFNP")
Contributions - employer $ 2,223,474 $ 2,731,447 $ 3,037,243 $ 3,378,771
Contributions - member - - - -
Net investment income 75,175 207,932 342,827 129,710
Benefit payments ( 1,291,027) ( 1,498,005) ( 1,568,468) ( 1,561,872)
Admin expenses - ( 2,452) ( 39,142) ( 3,553)
Other - - - -
Net change in plan fiduciary net position 1,007,622 1,438,922 1,772,460 1,943,056
Plan fiduciary net position - beginning of year 2,804,433 3,812,055 5,250,977 7,023,437
Plan fiduciary net position - end of year $ 3,812,055 $ 5,250,977 $ 7,023,437 $ 8,966,493
Net OPEB liability ("NOL") - beginning of year $ 45,890,580 $ 47,454,235 $ 48,899,484 $ 51,510,197
Net OPEB liability - end of year $ 47,454,235 $ 48,899,484 $ 51,510,197 $ 53,108,045
PFNP as a % of TOL 7.4% 9.7% 12.0% 14.4%
Covered employee payroll $ 21,604,888 $ 22,282,543 $ 23,843,440 $ 25,806,124
NOL as a % of covered employee payroll 219.6% 219.5% 216.0% 205.8%
This schedule is presented to illustrate the requirements to show information for 10 years. However, until a full 10-year
trend is available, only those years for which information is available, will be presented.
-126-

QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2020
OTHER POST-EMPLOYMENT BENEFITS TRUST (CONTINUED)
SCHEDULE OF ACTUAL EMPLOYER CONTRIBUTION AS A PERCENTAGE OF COVERED-EMPLOYEE
PAYROLL
Actuarially Contribution
Determined Actual Contribution Covered as a
Fiscal Employer Employer Deficiency / Employee Percent
Year Contribution Contribution (Excess) Payroll of Payroll
2011 $ 7,256,495 $ 835,792 $ 6,420,703 $ 20,439,972 4.1%
2012 7,806,661 1,508,144 6,298,517 18,903,632 8.0%
2013 9,024,000 1,668,781 7,355,219 17,640,063 9.5%
2014 9,187,000 1,692,951 7,494,049 17,953,154 9.4%
2015 4,004,722 2,066,819 1,937,903 19,064,280 10.8%
2016 4,189,564 2,121,316 2,068,248 20,650,915 10.3%
2017 3,853,839 2,223,474 1,630,365 21,604,888 10.3%
2018 3,969,454 2,731,447 1,238,007 22,282,543 12.3%
2019 4,377,119 3,037,243 1,339,876 23,843,440 12.7%
2020 4,508,433 3,378,771 1,129,662 25,806,124 13.1%
ACTUARIAL ASSUMPTIONS – OPEB PLAN
Actuarial assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2019, using the following actuarial
assumptions, applied to all periods included in the measurement:
Investment Return: 6.00%, net of investment expense and including inflation
Healthcare Trend: 6.75% initially, grading down to 4.25% ultimate
Mortality rates are based on the PUB2010G Headcount tables with Scale SSA18 applied on a generational basis.
PUB2010G Headcount Disabled tables are used for those on disability, if applicable.
Changes in Actuarial assumptions
There were no changes in actuarial assumptions since the prior year, except the change in discount rate due to an
updated fund availability analysis.
Actuarial Methods for Determining Employer Contributions
The same economic and demographic assumptions are used for both funding and financial reporting purposes under
GASB 74/75.
The Entry Age method is used for accounting/GASB purposes, therefore all of the actuarial figures within this
Report are based on it. Actuarially Determined Contributions are also based on the Entry Age method, with a closed
level percentage of payroll amortization of the unfunded liability (19 years remaining).
-127-

QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2020
LENGTH OF SERVICE AWARD PROGRAM (LOSAP)
SCHEDULE OF CHANGES IN THE NET LOSAP LIABILITY (as of measurement date)
AS OF MEASUREMENT DATE 2017 2018 2019
Total LOSAP liability ("TLL")
Service cost $ 206,276 $ 164,371 $ 215,978
Interest cost 196,904 249,496 180,529
Changes of benefit terms - - -
Differences between expected and actual experience - 137,821 (78,468)
Changes of assumptions 578,039 (491,888) 1,280,343
Benefits payments and admin expenses (190,420) (220,060) (220,084)
Net change in TLL 790,799 (160,260) 1,378,298
TLL - beginning of year 6,039,197 6,829,996 6,669,736
TLL - end of year $ 6,829,996 $ 6,669,736 $ 8,048,034
Plan fiduciary net position ("PFNP")
Contributions - employer $ - $ - $ -
Net investment income - - -
Benefits payments - - -
Administrative expense - - -
Net change in PFNP - - -
Total PFNP - beginning of year - - -
Total PFNP - end of year $ - $ - $ -
Net LOSAP liability ("NLL") 6,829,996 6,669,736 8,048,034
PFNP as a % of TLL 0% 0% 0%
Covered employee payroll - * N/A N/A N/A
NLL as a % of covered payroll N/A N/A N/A
* - the NLL is based on volunteer hours and as such has no payroll associated.
Expected average remaining service years of all participants 6 10 5
This schedule is presented to illustrate the requirements to show information for 10 years. However, until a full 10-year
trend is available, only those years for which information is available, will be presented.
-128-

QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2020
LENGTH OF SERVICE AWARD PROGRAM (LOSAP) (CONTINUED)
NOTES TO THE REQUIRED SUPPLEMENTAL INFORMATION – LOSAP
The LOSAP has no assets accumulated in a trust that meet the criteria in GASB 73, paragraph 4.
Benefit changes – fiscal year
2018 None
2019 None
2020 None
Changes of assumptions – fiscal year
2018 None, other than the discount rate
2019 None, other than the discount rate
2020 None, other than the discount rate
Discount rate – measurement rate
December 31, 2017 3.31%
December 31, 2018 3.71%
December 31, 2019 2.75%
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).
-129-

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, 2020
VARIANCE
ORIGINAL FINAL WITH FINAL
BUDGET BUDGET ACTUAL BUDGET
REVENUES
Taxes
Local Property Tax $ 70,332,149 $ 71,616,949 $ 7 1,645,066 $ 28,117
Local Income Tax 55,847,412 60,471,688 6 1,547,651 1,075,963
Admission and Amusement Taxes 171,700 171,700 1 50,153 (21,547)
Recordation Taxes 5,531,750 5,531,750 6 ,147,087 615,337
Hotel Taxes 626,200 626,200 5 30,601 (95,599)
County Transfer Taxes 2,012,894 2,012,894 2 ,283,527 270,633
State Shared Taxes 1,166,193 1,166,193 1 ,074,473 (91,720)
Franchise Fee 500,000 500,000 4 85,727 (14,273)
Licenses and Permits 643,564 643,564 5 43,912 (99,652)
Intergovernmental 1,735,000 1,764,949 1 ,615,025 (149,924)
Bond Interest Reimbursement - Build America Bond 315,000 315,000 - (315,000)
Charges for Current Services 2,819,000 2,819,000 2 ,645,061 (173,939)
Fines and Forfeitures 89,500 89,500 6 3,843 (25,657)
Investment Income 400,000 400,000 9 50,612 550,612
Donations - - 9 4,342 94,342
Miscellaneous 560,500 544,750 7 18,574 173,824
Total Revenues 142,750,862 148,674,137 1 50,495,654 1,821,517
EXPENDITURES
GENERAL GOVERNMENT
Legislative 475,675 479,206 4 03,295 75,911
Judicial
Circuit Court 619,595 625,980 4 39,513 186,467
Orphan's Court 99,148 99,148 8 3,396 15,752
State's Attorney 1,350,207 1,369,012 1 ,356,567 12,445
County Administrator 212,774 241,355 2 37,830 3,525
Board of Elections 942,694 942,694 7 34,976 207,718
Finance Office 1,269,669 1,287,883 1 ,277,425 10,458
Human Resources 631,283 640,727 6 08,113 32,614
Planning and Zoning 1,982,269 2,008,237 1 ,841,941 166,296
Information Technology 1,656,467 1,670,791 1 ,580,784 90,007
QAC-TV 392,557 403,641 4 01,507 2,134
Legal Services 471,700 471,700 3 67,787 103,913
Total General Government 10,104,038 10,240,374 9 ,333,134 907,240
PUBLIC SAFETY
Sheriff's Office 8,542,824 8,634,211 7 ,927,304 706,907
Volunteer Fire and Rescue Services 3,949,818 3,949,818 3 ,846,877 102,941
Detention Center 5,116,883 5,197,772 4 ,577,461 620,311
Emergency Services 9,908,634 10,036,973 9 ,486,602 550,371
Total Public Safety 27,518,159 27,818,774 2 5,838,244 1,980,530
PUBLIC WORKS
Administration 625,692 634,715 5 77,541 57,174
Solid Waste Disposal 1,711,019 1,724,640 1 ,503,956 220,684
Engineering Division 715,697 726,297 7 16,186 10,111
Roads Division 5,157,671 5,216,587 4 ,777,599 438,988
General Services 2,516,188 2,531,743 2 ,252,538 279,205
Animal Services - 248,900 1 94,050 54,850
Total Public Works 10,726,267 11,082,882 1 0,021,870 1,061,012
CONTINUED
-130-

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, 2020
(CONTINUED)
VARIANCE
ORIGINAL FINAL WITH FINAL
BUDGET BUDGET ACTUAL BUDGET
PARKS & RECREATION
Parks $ 4,229,220 $ 4,287,414 $ 3 ,732,317 $ 555,097
Recreation 943,192 952,080 7 80,924 171,156
Total Parks & Recreation 5,172,412 5,239,494 4 ,513,241 726,253
HEALTH AND SOCIAL SERVICES
Health Department 2,438,149 2,439,658 2 ,147,035 292,623
Social Services 174,298 178,805 1 77,746 1,059
Total Health and Social Services 2,612,447 2,618,463 2 ,324,781 293,682
EDUCATION AND LIBRARY
Board of Education 59,491,381 59,491,381 5 9,491,381 -
Chesapeake College 2,061,413 2,061,513 2 ,061,485 28
Queen Anne's County Free Library 1,889,225 1,889,225 1 ,889,225 -
Total Education and Library 6 3,442,019 6 3,442,119 6 3,442,091 28
CONSERVATION OF NATURAL RESOURCES
Cooperative Extension Service 338,328 339,294 3 38,570 724
Soil Conservation Service 213,144 216,997 1 50,227 66,770
4-H Park 84,200 84,200 7 5,935 8,265
Total Conservation of Natural Resources 635,672 640,491 5 64,732 75,759
ECONOMIC AND COMMUNITY DEVELOPMENT
Economic Development 609,608 618,585 5 47,486 71,099
Community Affairs 206,103 229,105 1 98,374 30,731
Total Economic and Community Development 815,711 847,690 7 45,860 101,830
DEBT SERVICE
School Debt Service - Principal 5,119,379 5,119,379 5 ,119,378 1
School Debt Service - Interest 2,198,512 2,198,512 1 ,891,124 307,388
County Debt Service - Principal 3,432,322 3,434,822 3 ,433,410 1,412
County Debt Service - Interest 2,580,329 2,577,829 2 ,328,852 248,977
Total Debt Service 13,330,542 13,330,542 1 2,772,764 557,778
INTERGOVERNMENTAL
Aid to Municipalities 213,686 263,686 2 59,596 4,090
SDAT Costs from State 425,000 425,000 3 02,460 122,540
Total Intergovernmental 638,686 688,686 5 62,056 126,630
CONTINUED
-131-

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, 2020
(CONTINUED)
VARIANCE
ORIGINAL FINAL WITH FINAL
BUDGET BUDGET ACTUAL BUDGET
MISCELLANEOUS
Aid to Other Agencies $ 573,045 $ 639,045 $ 6 36,312 $ 2,733
Insurance & Benefits 2,281,955 2,281,955 1 ,908,745 373,210
Transfer to OPEB Fund 1,816,899 1,816,899 1 ,816,899 -
Contingencies 1,050,000 392,599 3 19,639 72,960
Salary Lapse (1,124,856) ( 1,124,856) - (1,124,856)
Miscellaneous Non-Departmental 869,298 701,798 6 27,085 74,713
Total Miscellaneous 5,466,341 4,707,440 5 ,308,680 (601,240)
Total Expenditures 140,462,294 140,656,955 1 35,427,453 5,229,502
Excess of Revenues Over Expenditures 2,288,568 8,017,182 1 5,068,201 7,051,019
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - 18,000 3 0,607 12,607
Insurance Proceeds - - 1 1,311 11,311
Transfers In From:
Bridge Fund - 215,200 2 15,200 -
General Capital Projects - 10,051 1 0,051 -
Impact Fees - School 1,200,000 1,200,000 - (1,200,000)
Total Transfers In 1,200,000 1,425,251 2 25,251 (1,200,000)
Transfers Out To:
General Capital Projects Fund 422,603 5,922,603 5 ,922,603 -
Department of Aging 1,772,234 1,556,739 1 ,332,750 223,989
Department of Housing and Community Services 840,872 848,536 7 43,921 104,615
Community Partnerships 426,769 440,786 3 96,213 44,573
Agricultural Transfer Tax - 639,254 6 39,254 -
Grants Fund 11,410 49,659 3 2,627 17,032
Impact Fees - Fire Companies/Contingencies 90,000 90,000 8 5,112 4,888
Airport Enterprise Fund 59,942 60,964 6 0,963 1
Golf Course Enterprise Fund 287,341 290,953 9 6,621 194,332
Total Transfers Out 3,911,171 9,899,494 9 ,310,064 589,430
Total Other Financing (Uses) (2,711,171) ( 8,456,243) (9,042,895) (586,652)
Net Increase (Decrease) in Fund Balance $ (422,603) $ ( 439,061) 6 ,025,306 $ 6,464,367
Fund Balance, July 1 3 5,059,323
Fund Balance, June 30 $ 4 1,084,629
-132-

-133-

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.
-134-

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.
-135-

NON-MAJOR GOVERNMENTAL FUNDS
Non-major governmental funds are special revenue funds, unless otherwise noted:
Department of Aging – This fund accounts for activities funded primarily by grants to provide services for
the elderly and is included in the social services function.
Housing and Community Services – This fund accounts for activities funded mostly by grants and
revolving loan funds that support housing rehabilitation and home-ownership and is included in the
economic and community development function.
Grants Fund – This fund accounts for activities funded by grants and is included in various governmental
functions, depending on the grant.
Revolving Loan Fund – This fund accounts for activities funded by community donations and grants to
promote and provide economic development loans to local businesses and is included in the economic and
community development function.
Economic Development Incentive Fund – This fund accounts for activities funded with a portion of
recordation taxes that support economic development in the County by attracting and investing in new and
existing businesses and is included in the economic and community development function.
BRIDGE (Business Reinvestment and Infrastructure Development Grant Enterprise) Fund – This
fund accounts for activities funded with a portion of recordation taxes and provides new commercial
businesses funding for capital and infrastructure improvements. The BRIDGE Fund is included in the
economic and community development function.
Community Partnerships for Children – This fund accounts for activities funded by grants allocated to
the County that provide services for children and families and is included in the social services function.
Critical Areas – This fund accounts for activities funded by payments in lieu of performance bonds that
support efforts to mitigate and preserve critical areas along the shoreline of tidal waters within the County
and is included in the conservation of natural resources function.
Law Library – This fund accounts for activities funded by court fees, fines, and contributions from local
attorneys to update legal reference materials housed in the courthouse and is included in the general
government function.
Sheriff’s Drug Task Force – This fund accounts for activities funded by drug-related forfeitures that
support drug interdiction efforts by a multi-faceted task force and is included in the public safety function.
Inmate Welfare Fund – This fund accounts for activities funded by profits earned from Detention Center
inmate-related services that promote the welfare of the inmates and is included in the public safety
function.
Agricultural Transfer Tax – This fund accounts for activities funded primarily by the Agricultural
Transfer Tax to purchase agricultural easements that preclude development and is included in the
conservation of natural resources function.
Rural Legacy – This fund accounts for activities funded primarily by Maryland’s Rural Legacy Program to
purchase easements that preclude development and is included in the conservation of natural resources
function.
-136-

Purchase of Development Rights – This fund accounts for activities funded by Queen Anne’s County to
acquire easements to restrict the use of agricultural land and woodland and is included in the conservation
of natural resources function.
Dredging Special Assessments – This fund accounts for activities funded by special assessment funds
collected to repay loans for specific dredging and erosion projects that benefited Price’s Creek, Grove
Creek, and Narrows Pointe and is included in the conservation of natural resources function.
Kent Narrows – This fund accounts for activities funded by tax revenues to improve the Kent Narrows
area and is included in the economic and community development function.
Capital Projects – School Impact Fees – This fund accounts for financial resources generated by new
residential construction and used for the construction of public school facilities or payment of school debt
relating to such construction.
Capital Projects – Fire Company Impact Fees – This fund accounts for activities funded by impact fees
specifically earmarked to enhance local volunteer fire company preparedness resulting from new
construction and is included in the public safety function.
Capital Projects – Parks and Recreation Impact Fees – This fund accounts for activities funded by
impact fees specifically earmarked to enhance parks and recreation and is included in the parks and
recreation function.
-137-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2020
HOUSING AND ECONOMIC
DEPARTMENT COMMUNITY GRANTS REVOLVING DEVELOPMENT BRIDGE
OF AGING SERVICES FUND LOAN FUND INCENTIVE FUND
ASSETS
Cash and Cash Equivalents $ - $ 2 ,658,509 $ 3 ,525,641 $ 5 00,811 $ 357,759 $ 8 5,680
Receivables
Taxes Receivable (Net) - - - - - -
Accounts Receivable (Net) 2,073 9,485 4,125 1 0,662 - -
Loans Receivable (Net) - 5 ,695,438 - 5 9,919 - -
Special Assessments (Net) - - - - - -
Due from Other Governments 4 89,132 4 3,330 6 70,287 - - -
Total Assets $ 4 91,205 $ 8 ,406,762 $ 4 ,200,053 $ 5 71,392 $ 357,759 $ 8 5,680
LIABILITIES
Accrued Liabilities $ 1 70,684 $ 2 3,771 $ 5 6,339 $ - $ - $ -
Due to Other Funds 2 02,474 - - - - -
Due to Other Governmental Agencies 721 3,136 - - - -
Unearned Revenue - 680 3 ,903,714 - - -
Total Liabilities 3 73,879 2 7,587 3 ,960,053 - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable Benefit Assessments - - - - - -
Unavailable Fees - - - - - -
Total Deferred Inflows - - - - - -
Total Liabilities and Deferred Inflows 3 73,879 2 7,587 3 ,960,053 - - -
FUND BALANCES
Restricted 3,382 2 ,788,973 - - - -
Committed - 5 ,590,202 - 5 71,392 3 57,759 8 5,680
Assigned 1 13,944 - 2 40,000 - - -
Unassigned - - - - - -
Total Fund Balances 1 17,326 8 ,379,175 2 40,000 5 71,392 3 57,759 8 5,680
Total Liabilities, Deferred Inflows and Fund
Balances $ 4 91,205 $ 8 ,406,762 $ 4 ,200,053 $ 5 71,392 $ 357,759 $ 8 5,680
-138-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2020
(CONTINUED)
COMMUNITY SHERIFF'S
PARTNERSHIPS DRUG PURCHASE OF
FOR CRITICAL LAW TASK INMATE AGRICULTURAL RURAL DEVELOPMENT
CHILDREN AREAS LIBRARY FORCE WELFARE TRANSFER LEGACY RIGHTS
$ 4 43,814 $ 2 70,928 $ 3 50,975 $ 1 65,585 $ 241,080 $ 1 49,351 $ 1 ,080,335 $ -
- - - - - - - -
1,718 - - - 2 02 - - -
- - - - - - - -
- - - - - - - -
1 73,221 - - - - 6,765 - -
$ 6 18,753 $ 2 70,928 $ 3 50,975 $ 1 65,585 $ 241,282 $ 1 56,116 $ 1 ,080,335 $ -
$ 1 78,458 $ 8 ,900 $ 27 $ 2 9,701 $ 3,515 $ - $ - $ -
- - - - - - - -
3 75,009 - - - 25,718 - - -
- - - - - - - -
5 53,467 8,900 27 2 9,701 29,233 - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
5 53,467 8,900 27 2 9,701 29,233 - - -
- 2 62,028 - 1 35,884 212,049 1 56,116 1 ,080,335 -
- - - - - - - -
65,286 - 3 50,948 - - - - -
- - - - - - - -
6 5,286 2 62,028 3 50,948 1 35,884 212,049 1 56,116 1 ,080,335 -
$ 6 18,753 $ 2 70,928 $ 3 50,975 $ 1 65,585 $ 241,282 $ 1 56,116 $ 1 ,080,335 $ -
CONTINUED
-139-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2020
(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 $ 2 ,262 $ 198,804 $ 10,722,271 $ 4 16,491 $ 3 01,853 $ 21,472,149
Receivables
Taxes Receivable (Net) - 7 45 - - - 745
Accounts Receivable (Net) 3,833 - - - - 3 2,098
Loans Receivable (Net) - - 6 88,573 1 04,813 7 5,363 6 ,624,106
Special Assessments (Net) 7 74,172 - - - - 7 74,172
Due from Other Governments - - - - - 1 ,382,735
Total Assets $ 7 80,267 $ 199,549 $ 11,410,844 $ 5 21,304 $ 3 77,216 $ 30,286,005
LIABILITIES
Accrued Liabilities $ - $ - $ - $ - $ - $ 4 71,395
Due to Other Funds - - - 2 4,133 - 2 26,607
Due to Other Governmental Agencies - - - - - 4 04,584
Unearned Revenue - - - - - 3 ,904,394
Total Liabilities - - - 2 4,133 - 5 ,006,980
DEFERRED INFLOWS OF RESOURCES
Unavailable Benefit Assessments 7 74,172 - - - - 7 74,172
Unavailable Fees - - 6 88,573 1 04,813 7 5,363 8 68,749
Total Deferred Inflows 7 74,172 - 6 88,573 1 04,813 7 5,363 1 ,642,921
Total Liabilities and Deferred Inflows 7 74,172 - 6 88,573 1 28,946 7 5,363 6 ,649,901
FUND BALANCES
Restricted 6,095 1 99,549 - - - 4 ,844,411
Committed - - 1 0,722,271 4 16,491 3 01,853 1 8,045,648
Assigned - - - - - 7 70,178
Unassigned - - - (24,133) - (24,133)
Total Fund Balances 6,095 1 99,549 1 0,722,271 3 92,358 3 01,853 2 3,636,104
Total Liabilities, Deferred Inflows and
Fund Balances $ 7 80,267 $ 199,549 $ 11,410,844 $ 5 21,304 $ 3 77,216 $ 30,286,005
-140-

-141-

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, 2020
HOUSING AND ECONOMIC
DEPARTMENT COMMUNITY GRANTS REVOLVING DEVELOPMENT BRIDGE
OF AGING SERVICES FUND LOAN FUND INCENTIVE FUND
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ -
Recordation Taxes - 192,096 - - - -
State Shared Taxes - - - - - -
Intergovernmental 1,368,637 178,592 1,593,499 - - -
Charges for Current Services 72,840 205,000 16,558 - - -
Fines and Forfeitures - - - - - -
Investment Income 2,231 13,985 - 1 ,888 - -
Donations 19,988 - 10,000 - - -
Miscellaneous 27,840 - 17,714 - 34,000 -
Total Revenues 1,491,536 589,673 1,637,771 1 ,888 34,000 -
EXPENDITURES
Current
General Government - - 113,224 - - -
Public Safety - - 530,755 - - -
Public Works - - 123,878 - - -
Parks & Recreation - - 41,774 - - -
Social Services 2,831,759 - 228,558 - - -
Conservation of Natural Resources - - - - - -
Economic/Community Development - 697,513 548,166 - 81,137 -
Capital Outlay 88,166 - 84,043 - - -
Debt Service
Principal - - - - - -
Total Expenditures 2,919,925 697,513 1,670,398 - 81,137 -
Excess of Revenues Over (Under) Expenditures (1,428,389) (107,840) (32,627) 1 ,888 (47,137) -
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals 45 - - - - -
Insurance Proceeds 9,450 - - - - -
Transfers In 1,332,750 743,921 272,627 - - -
Transfers Out - (240,000) - - - (215,200)
Other Financing Sources (Uses) 1,342,245 503,921 272,627 - - (215,200)
Net Increase (Decrease) in Fund Balances (86,144) 396,081 240,000 1 ,888 (47,137) (215,200)
Fund Balances, July 1 203,470 7,983,094 - 569,504 404,896 300,880
Fund Balances, June 30 $ 117,326 $ 8 ,379,175 $ 240,000 $ 571,392 $ 357,759 $ 85,680
-142-

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, 2020
(CONTINUED)
COMMUNITY SHERIFF'S
PARTNERSHIPS DRUG PURCHASE OF
FOR CRITICAL LAW TASK INMATE AGRICULTURAL RURAL DEVELOPMENT
CHILDREN AREAS LIBRARY FORCE WELFARE TRANSFER LEGACY RIGHTS
$ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- - - - - 117,820 - -
698,997 - - - - - 831,902 -
- 49,957 12,393 - 84,569 - - -
- - 34,327 34,255 - - - -
694 - 4,470 2,350 3,141 - 9,185 -
- - - - - - - -
19,340 - - 670 6,725 - - -
719,031 49,957 51,190 37,275 94,435 117,820 841,087 -
- - 6,037 - - - - -
- - - 53,732 104,229 - - -
- - - - - - - -
- - - - - - - -
1,114,550 - - - - - - -
- 8,900 - - - 750,000 151,940 -
- - - - - - - -
- - - - - - - -
- - - - - - - -
1,114,550 8,900 6,037 53,732 104,229 750,000 151,940 -
(395,519) 41,057 45,153 (16,457) (9,794) (632,180) 689,147 -
- - - - - - - -
- - - - - - - -
396,213 - - - - 701,447 550 -
- - - - - - - (550)
396,213 - - - - 701,447 550 (550)
694 41,057 45,153 (16,457) (9,794) 69,267 689,697 (550)
64,592 2 20,971 305,795 152,341 221,843 86,849 390,638 550
$ 65,286 $ 2 62,028 $ 350,948 $ 135,884 $ 212,049 $ 156,116 $ 1 ,080,335 $ -
CONTINUED
-143-

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, 2020
(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 $ - $ 37,323 $ - $ - $ - $ 37,323
Recordation Taxes - - - - - 192,096
State Shared Taxes - - - - - 117,820
Intergovernmental - - - - - 4,671,627
Charges for Current Services 5 0,286 - 1,593,201 3 30,253 2 00,606 2,615,663
Fines and Forfeitures - - - - - 68,582
Investment Income 3 74 2,865 131,522 5,151 2 ,206 180,062
Donations - - - - - 29,988
Miscellaneous - - - - - 106,289
Total Revenues 5 0,660 40,188 1,724,723 3 35,404 2 02,812 8,019,450
EXPENDITURES
Current
General Government - - - - - 119,261
Public Safety - - - 2 85,527 - 974,243
Public Works - - - - - 123,878
Parks & Recreation - - - - - 41,774
Social Services - - - - - 4,174,867
Conservation of Natural Resources - - - - - 910,840
Economic/Community Development - 35,000 - - - 1,361,816
Capital Outlay - - - - - 172,209
Debt Service
Principal 7 1,816 - - - - 71,816
Total Expenditures 7 1,816 35,000 - 2 85,527 - 7,950,704
Excess of Revenues Over (Under) Expenditures (21,156) 5,188 1,724,723 49,877 2 02,812 68,746
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - 45
Insurance Proceeds - - - - - 9,450
Transfers In - - - 85,112 - 3,532,620
Transfers Out - - - - - (455,750)
Other Financing Sources (Uses) - - - 85,112 - 3,086,365
Net Increase (Decrease) in Fund Balances (21,156) 5,188 1,724,723 1 34,989 2 02,812 3,155,111
Fund Balances, July 1 2 7,251 194,361 8,997,548 2 57,369 9 9,041 2 0,480,993
Fund Balances, June 30 $ 6 ,095 $ 199,549 $ 1 0,722,271 $ 3 92,358 $ 3 01,853 $ 2 3,636,104
-144-

-145-

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2020
DEPARTMENT OF AGING HOUSING AND COMMUNITY SERVICES
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - 200,000 200,000 192,096 ( 7,904)
State Shared Taxes - - - - - - - -
Intergovernmental 1,047,168 1,371,043 1,368,637 ( 2,406) 169,997 255,376 178,592 ( 76,784)
Charges for Current Services 116,100 116,100 72,840 ( 43,260) 350,000 350,000 205,000 ( 145,000)
Fines and Forfeitures - - - - - - - -
Investment Income - - 2,231 2,231 - - 13,985 13,985
Donations 35,000 35,000 19,988 ( 15,012) - - - -
Miscellaneous 3,000 3 ,000 27,840 24,840 - - - -
Total Revenues 1,201,268 1,525,143 1,491,536 ( 33,607) 719,997 805,376 589,673 ( 215,703)
EXPENDITURES
Current Operating Expenditures 2,973,502 3,081,882 2,831,759 250,123 1,710,869 1,653,912 697,513 956,399
Capital Outlay - 88,166 88,166 - - - - -
Debt Service
Principal - - - - - - - -
Total Expenditures 2,973,502 3,170,048 2,919,925 250,123 1,710,869 1,653,912 697,513 956,399
Excess of Revenues Over (Under) Expenditures ( 1,772,234) (1,644,905) ( 1,428,389) 216,516 ( 990,872) ( 848,536) (107,840) 740,696
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - 45 45 - - - -
Insurance Proceeds - - 9,450 9,450 - - - -
Transfers In 1,772,234 1,556,739 1,332,750 ( 223,989) 840,872 848,536 743,921 ( 104,615)
Transfers Out - - - - - ( 240,000) (240,000) -
Total Other Financing Sources (Uses) 1,772,234 1,556,739 1,342,245 ( 214,494) 840,872 608,536 503,921 ( 104,615)
Net Increase (Decrease) in Fund Balances $ - $ (88,166) ( 86,144) $ 2,022 $ ( 150,000) $ ( 240,000) 396,081 $ 636,081
Fund Balances, July 1 203,470 7,983,094
Fund Balances, June 30 $ 117,326 $ 8,379,175
-146-

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2020
(CONTINUED)
GRANTS FUND ECONOMIC DEVELOPMENT INCENTIVE
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- - - - - - - -
5 15,502 3,735,016 1,593,499 (2,141,517) - - - -
2 5,000 2 5,000 1 6,558 (8,442) - - - -
- - - - - - - -
- - - - - - - -
- - 1 0,000 1 0,000 - - - -
3 4,500 5 1,000 1 7,714 (33,286) - 2 4,000 3 4,000 1 0,000
5 75,002 3,811,016 1,637,771 (2,173,245) - 2 4,000 3 4,000 1 0,000
5 13,174 3,943,395 1,586,355 2,357,040 - 2 58,063 8 1,137 1 76,926
7 3,238 1 57,280 8 4,043 7 3,237 - - - -
- - - - - - - -
5 86,412 4,100,675 1,670,398 2,430,277 - 2 58,063 8 1,137 1 76,926
(11,410) (289,659) (32,627) 2 57,032 - (234,063) (47,137) 1 86,926
- - - - - - - -
- - - - - - - -
1 1,410 2 89,659 2 72,627 (17,032) - - - -
- - - - - - - -
1 1,410 2 89,659 2 72,627 (17,032) - - - -
$ - $ - 2 40,000 $ 240,000 $ - $ (234,063) (47,137) $ 186,926
- 4 04,896
$ 240,000 $ 357,759
CONTINUED
-147-

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, 2020
(CONTINUED)
BRIDGE FUND COMMUNITY PARTNERSHIPS FOR CHILDREN
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Intergovernmental - - - - 656,665 700,910 698,997 ( 1,913)
Charges for Current Services - - - - - - - -
Fines and Forfeitures - - - - - - - -
Investment Income - - - - - - 694 694
Donations - - - - - - - -
Miscellaneous - - - - 11,000 17,722 19,340 1,618
Total Revenues - - - - 667,665 718,632 719,031 399
EXPENDITURES
Current Operating Expenditures - - - - 1,094,434 1,159,418 1,114,550 44,868
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Total Expenditures - - - - 1,094,434 1,159,418 1,114,550 44,868
Excess of Revenues Over (Under) Expenditures - - - - ( 426,769) ( 440,786) ( 395,519) 45,267
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In - - - - 426,769 440,786 396,213 ( 44,573)
Transfers Out - ( 215,200) ( 215,200) - - - - -
Total Other Financing Sources (Uses) - ( 215,200) ( 215,200) - 426,769 440,786 396,213 ( 44,573)
Net Increase (Decrease) in Fund Balances $ - $ ( 215,200) ( 215,200) $ - $ - $ - 694 $ 694
Fund Balances, July 1 300,880 64,592
Fund Balances, June 30 $ 85,680 $ 65,286
-148-

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, 2020
(CONTINUED)
LAW LIBRARY INMATE WELFARE
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- - - - - - - -
- - - - 9 ,950 9 ,950 - (9,950)
1 0,000 1 0,000 1 2,393 2 ,393 1 25,000 1 25,000 8 4,569 (40,431)
1 5,500 1 5,500 3 4,327 1 8,827 - - - -
- - 4 ,470 4 ,470 - - 3 ,141 3 ,141
- - - - - - - -
- - - - 2 2,350 2 2,350 6 ,725 (15,625)
2 5,500 2 5,500 5 1,190 2 5,690 1 57,300 1 57,300 9 4,435 (62,865)
2 5,500 2 5,500 6 ,037 1 9,463 1 48,250 1 48,250 1 04,229 4 4,021
- - - - 2 0,000 2 0,000 - 2 0,000
- - - - - - - -
2 5,500 2 5,500 6 ,037 1 9,463 1 68,250 1 68,250 1 04,229 6 4,021
- - 4 5,153 4 5,153 (10,950) (10,950) (9,794) 1 ,156
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
$ - $ - 4 5,153 $ 4 5,153 $ (10,950) $ (10,950) (9,794) $ 1 ,156
3 05,795 2 21,843
$ 350,948 $ 212,049
CONTINUED
-149-

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, 2020
(CONTINUED)
AGRICULTURAL TRANSFER RURAL LEGACY
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
State Shared Taxes 250,000 250,000 117,820 ( 132,180) - - - -
Intergovernmental - - - - - 2,029,259 831,902 ( 1,197,357)
Charges for Current Services - - - - - - - -
Fines and Forfeitures - - - - - - - -
Investment Income - - - - - - 9,185 9,185
Donations - - - - - - - -
Miscellaneous - - - - - - - -
Total Revenues 250,000 250,000 117,820 ( 132,180) - 2,029,259 841,087 ( 1,188,172)
EXPENDITURES
Current Operating Expenditures 250,000 1,000,000 750,000 250,000 - 2,029,259 151,940 1,877,319
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Total Expenditures 250,000 1,000,000 750,000 250,000 - 2,029,259 151,940 1,877,319
Excess of Revenues Over (Under) Expenditures - ( 750,000) (632,180) 117,820 - - 689,147 689,147
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In - 701,447 701,447 - - - 550 550
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) - 701,447 701,447 - - - 550 550
Net Increase (Decrease) in Fund Balances $ - $ ( 48,553) 6 9,267 $ 117,820 $ - $ - 689,697 $ 689,697
Fund Balances, July 1 8 6,849 390,638
Fund Balances, June 30 $ 156,116 $ 1 ,080,335
-150-

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, 2020
(CONTINUED)
DREDGING SPECIAL ASSESSMENTS KENT NARROWS
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ 3 8,000 $ 3 8,000 $ 3 7,323 $ (677)
- - - - - - - -
- - - - - - - -
- - - - - - - -
7 2,191 7 2,191 5 0,286 (21,905) - - - -
- - - - - - - -
- - 3 74 3 74 - - 2 ,865 2 ,865
- - - - - - - -
- - - - - - - -
7 2,191 7 2,191 5 0,660 (21,531) 3 8,000 3 8,000 4 0,188 2 ,188
2 ,236 2 ,236 - 2 ,236 3 8,000 3 8,000 3 5,000 3 ,000
- - - - - - - -
6 9,955 6 9,955 7 1,816 (1,861) - - - -
7 2,191 7 2,191 7 1,816 3 75 3 8,000 3 8,000 3 5,000 3 ,000
- - (21,156) (21,156) - - 5 ,188 5 ,188
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
$ - $ - (21,156) $ (21,156) $ - $ - 5 ,188 $ 5 ,188
2 7,251 1 94,361
$ 6 ,095 $ 199,549
CONTINUED
-151-

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, 2020
(CONTINUED)
CAPITAL PROJECTS - SCHOOL IMPACT FEES
VARIANCE
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ -
Recordation Taxes - - - -
State Shared Taxes - - - -
Intergovernmental - - - -
Charges for Current Services 1,200,000 1,200,000 1,593,201 3 93,201
Fines and Forfeitures - - - -
Investment Income - - 131,522 1 31,522
Donations - - - -
Miscellaneous - - - -
Total Revenues 1,200,000 1,200,000 1,724,723 5 24,723
EXPENDITURES
Current Operating Expenditures - - - -
Capital Outlay - - - -
Debt Service
Principal - - - -
Total Expenditures - - - -
Excess of Revenues Over (Under) Expenditures 1,200,000 1,200,000 1,724,723 5 24,723
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - -
Insurance Proceeds - - - -
Transfers In - - - -
Transfers Out (1,200,000) (1,200,000) - 1 ,200,000
Total Other Financing Sources (Uses) (1,200,000) (1,200,000) - 1 ,200,000
Net Increase (Decrease) in Fund Balances $ - $ - 1,724,723 $ 1,724,723
Fund Balances, July 1 8,997,548
Fund Balances, June 30 $ 10,722,271
-152-

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, 2020
(CONTINUED)
CAPITAL PROJECTS - FIRE COMPANY IMPACT FEES CAPITAL PROJECTS - PARKS & RECREATION IMPACT FEES
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- - - - - - - -
- - - - - - - -
2 00,000 2 00,000 3 30,253 1 30,253 1 50,000 1 50,000 2 00,606 5 0,606
- - - - - - - -
5 00 5 00 5 ,151 4 ,651 4 00 4 00 2 ,206 1 ,806
- - - - - - - -
- - - - - - - -
2 00,500 2 00,500 3 35,404 1 34,904 1 50,400 1 50,400 2 02,812 5 2,412
2 90,500 2 90,500 2 85,527 4 ,973 - - - -
- - - - - - - -
- - - - - - - -
2 90,500 2 90,500 2 85,527 4 ,973 - - - -
(90,000) (90,000) 4 9,877 1 39,877 1 50,400 1 50,400 2 02,812 5 2,412
- - - - - - - -
- - - - - - - -
9 0,000 9 0,000 8 5,112 (4,888) - - - -
- - - - (150,400) (150,400) - 1 50,400
9 0,000 9 0,000 8 5,112 (4,888) (150,400) (150,400) - 1 50,400
$ - $ - 1 34,989 $ 134,989 $ - $ - 2 02,812 $ 202,812
2 57,369 9 9,041
$ 392,358 $ 301,853
-153-

-154-

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.
-155-

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.
-156-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2020
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
ASSETS COURSE AND MARINAS ENTERPRISE
Current Assets
Equity in Pooled Cash $ - $ 790,189 $ 790,189
Accounts Receivable (Net) - 73,504 7 3,504
Due from Other Governments - 13,130 1 3,130
Inventories 2,764 - 2 ,764
Total Current Assets 2,764 876,823 8 79,587
Capital Assets 2,917,106 6,415,637 9,332,743
Less Accumulated Depreciation (748,794) (1,347,966) (2,096,760)
Total Capital Assets, Net of Depreciation 2,168,312 5,067,671 7,235,983
Total Noncurrent Assets 2,168,312 5,067,671 7,235,983
Total Assets 2,171,076 5,944,494 8,115,570
DEFERRED OUTFLOWS OF RESOURCES
Other Post-Employment Benefit Obligation - 9,298 9 ,298
Pension Benefits 11,861 23,854 3 5,715
Deferred Charge on Refunding - 1,028 1 ,028
Total Deferred Outflows of Resources 11,861 34,180 4 6,041
LIABILITIES
Current Liabilities
Accounts Payable 30,632 27,122 5 7,754
Accrued Interest Payable 1,477 6,840 8 ,317
Due to Other Funds 693,566 - 6 93,566
Unearned Revenue 3,354 - 3 ,354
Current Portion of Compensated Absences 8,323 19,639 2 7,962
Current Portion of Bonds/Notes Payable 4,197 56,030 6 0,227
Total Current Liabilities 741,549 109,631 8 51,180
Noncurrent Liabilities
Compensated Absences 6,030 14,229 2 0,259
Other Post-Employment Benefit Obligation - 318,300 3 18,300
Net Pension Liability 64,751 131,676 1 96,427
Bonds/Notes Payable 93,958 630,893 7 24,851
Total Noncurrent Liabilities 164,739 1,095,098 1,259,837
Total Liabilities 906,288 1,204,729 2,111,017
DEFERRED INFLOWS OF RESOURCES
Pension Benefits 7,848 15,709 2 3,557
Other Post-Employment Benefit Obligation - 74 74
Bond Refundings - 2,460 2 ,460
Total Deferred Inflows of Resources 7,848 18,243 2 6,091
NET POSITION
Net Investment in Capital Assets 2,070,157 4,381,776 6,451,933
Unrestricted Amounts (Deficit) (801,356) 373,926 (427,430)
Total Net Position $ 1,268,801 $ 4,755,702 $ 6,024,503
-157-

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, 2020
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
COURSE AND MARINAS ENTERPRISE
OPERATING REVENUES
Charges for Services $ 399,603 $ 538,760 $ 9 38,363
Intergovernmental - 10,447 1 0,447
Material Sales 43,001 - 4 3,001
Miscellaneous Revenues 615 25,654 2 6,269
Total Operating Revenues 443,219 574,861 1 ,018,080
OPERATING EXPENSES
Cost of Sales and Services
Recreation 513,462 518,342 1 ,031,804
Other Post-Employment Benefit Contributions - 5,060 5 ,060
Pension Liability Adjustment 1,769 3,550 5 ,319
Depreciation 24,483 129,738 1 54,221
Total Operating Expenses 539,714 656,690 1 ,196,404
Operating (Loss) (96,495) (81,829) (178,324)
NON-OPERATING (EXPENSES)
Interest Expense (1,621) (23,088) (24,709)
(Loss) on Disposal of Capital Assets - (3,960) (3,960)
Total Non-Operating (Expenses) (1,621) (27,048) (28,669)
(Loss) Before Contributions and Transfers (98,116) (108,877) (206,993)
Transfers In 98,116 - 9 8,116
Change in Net Position - (108,877) (108,877)
Total Net Position - Beginning of Year 1 ,268,801 4,864,579 6 ,133,380
Total Net Position - End of Year $ 1,268,801 $ 4,755,702 $ 6 ,024,503
-158-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2020
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
COURSE AND MARINAS ENTERPRISE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 3 99,168 $ 508,984 $ 908,152
Receipts from other operating revenues 4 3,616 104,971 148,587
Receipts from Build America Bond interest reimbursement - 2,682 2,682
Payments to suppliers (389,645) (279,165) (668,810)
Payments to employees and on behalf of employees (138,700) (233,696) (372,396)
Net Cash Provided (Used) by Operating Activities (85,561) 103,776 18,215
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds 9 8,116 - 98,116
Receipts from interfund loans 6 93,566 - 693,566
Principal paid on interfund loans (625,313) - (625,313)
Net Cash Provided by Noncapital Financing Activities 1 66,369 - 166,369
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal paid on capital debt (75,871) (623,956) (699,827)
Proceeds from the sale of bonds - 490,649 490,649
Premium on sale of bonds - 97,832 97,832
Interest paid on capital debt (4,937) (34,897) (39,834)
Acquisition and Construction of Capital Assets - (45,395) (45,395)
Net Cash (Used) by Capital and Related Financing Activities (80,808) (115,767) (196,575)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income - - -
Net Cash Provided (Used) by Investing Activities - - -
Net (decrease) in cash and cash equivalents - (11,991) (11,991)
Balances - Beginning of year - 802,180 802,180
Balances - End of year $ - $ 790,189 $ 790,189
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (loss) $ (96,495) $ (81,829) $ (178,324)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation 2 4,483 129,738 154,221
Changes in assets and liabilities:
Accounts receivable, net - (29,776) (29,776)
Operating grants receivable - 68,870 68,870
Build America Bonds Interest receivable - 2,682 2,682
Inventories and Prepaid Expenses 1,755 - 1,755
Vendor accounts payable (17,194) 3,515 (13,679)
Compensated absences 556 1,966 2,522
Other Post-Employment Benefit Obligation - 5,060 5,060
Net Pension Liability 1,769 3,550 5,319
Deferred revenue collected in advance (435) - (435)
Net Cash Provided (Used) by Operating Activities $ (85,561) $ 103,776 $ 18,215
Noncash investing, capital and financing activities:
Donation of capital assets (infrastructure) by developers $ - $ - $ -
-159-

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.
-160-

OTHER POST-EMPLOYMENT BENEFIT (OPEB) TRUST FUND
The County established a Trust entity, entitled “Other Post-Employment Benefit Trust – County
Commissioners of Queen Anne's County, County Commissioners of Kent County, and Participating
Agencies” (OPEB Trust), to accumulate resources and account for and report retiree benefit plans for the
participating agencies.
Participating agencies in the OPEB Trust Fund are as follows:
Queen Anne's County
Queen Anne's County Board of Education
Queen Anne’s County Library
Kent County
AGENCY FUNDS
Agency funds are as follows:
Tax Ditch – This fund accounts for special taxing district revenues that are used to maintain drainage
ditches located in parts of the County.
Zoning Deposits – This fund accounts for performance deposits required under various sections of the
Zoning Ordinance.
State and Town Tax Collections – This fund accounts for collections received by the County on behalf of
the State of Maryland and incorporated towns located within the County. These taxes are collected by the
County along with County taxes and are then remitted to the proper jurisdiction.
Motor Vehicle Administration Deposits – This fund accounts for funds collected by the County for State
vehicle registration fees.
Escheat – Abandoned Property – This fund accounts for stale-dated County payroll and disbursements
checks that are voided by the County and remitted to the State after three years as abandoned property. In
accordance with State statutes, these funds are available to be claimed by the original payee or they revert
to the State.
-161-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF FIDUCIARY NET POSITION
OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
JUNE 30, 2020
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 $ 790,396 $ 5 21,808 $ 31,309 $ 1 61,760 $ 1 ,505,273
Investments, at Fair Value
Debt Securities 2,121,318 - - - 2 ,121,318
Fixed Income Fund 393,502 - - - 3 93,502
Mutual and Global Funds 4,394,083 - - - 4 ,394,083
International 1,267,194 - - - 1 ,267,194
Total Investments 8,176,097 - - - 8 ,176,097
Total Assets 8,966,493 5 21,808 31,309 1 61,760 9 ,681,370
LIABILITIES
Accrued Expenses 9,005 - - - 9 ,005
Due to Other Governments - - - 1 61,760 1 61,760
Total Liabilities 9,005 - - 1 61,760 1 70,765
NET POSITION RESTRICTED FOR
OTHER POST-EMPLOYMENT BENEFITS $ 8,957,488 $ 5 21,808 $ 31,309 $ - $ 9 ,510,605
-162-

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, 2020
QUEEN ANNE'S TOTAL
COUNTY QUEEN ANNE'S OPEB
QUEEN ANNE'S BOARD OF COUNTY TRUST
COUNTY EDUCATION LIBRARY FUND
ADDITIONS
Contributions
Employers $ 3 ,378,770 $ 1,982,185 $ 24,652 $ 5 ,385,607
Members 3 59,085 4 79,415 - 8 38,500
Total Contributions 3 ,737,855 2,461,600 24,652 6 ,224,107
Investment Earnings
Interest 1 51,684 5 ,979 3 59 1 58,022
Net (Decrease) in the Fair Value of Investments ( 324) - - (324)
Total Investment Gain 1 51,360 5 ,979 3 59 1 57,698
Less Investment Expenses (3,849) - - (3,849)
Net Investment Gain 1 47,511 5 ,979 3 59 1 53,849
Total Additions 3 ,885,366 2,467,579 25,011 6 ,377,956
DEDUCTIONS
Claims Paid 1 ,920,956 2,461,600 24,652 4 ,407,208
Administrative Expenses 3 0,359 - - 3 0,359
Total Deductions 1 ,951,315 2,461,600 24,652 4 ,437,567
Change in Fiduciary Net Position 1 ,934,051 5 ,979 3 59 1 ,940,389
NET POSITION RESTRICTED FOR OTHER POST-EMPLOYMENT BENEFITS
Net Position - Beginning of Year 7 ,023,437 515,829 30,950 7,570,216
Net Position - End of Year $ 8 ,957,488 $ 521,808 $ 31,309 $ 9,510,605
-163-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ASSETS AND LIABILITIES
AGENCY FUNDS
JUNE 30, 2020
STATE MOTOR
TAX & TOWN VEHICLE ESCHEAT - TOTAL
DITCH ZONING TAX ADMIN ABANDONED AGENCY
FUND DEPOSITS COLLECTIONS DEPOSITS PROPERTY FUNDS
ASSETS
Cash and Cash Equivalents $ 1 77,559 $ 442,233 $ 2 74,516 $ - $ 15,278 $ 9 09,586
Total Assets $ 1 77,559 $ 442,233 $ 2 74,516 $ - $ 15,278 $ 9 09,586
LIABILITIES
Due to Other Governments $ - $ - $ 2 74,516 $ - $ 15,278 $ 2 89,794
Deposits and Escrows 1 77,559 442,233 - - - 6 19,792
Total Liabilities $ 1 77,559 $ 442,233 $ 2 74,516 $ - $ 15,278 $ 9 09,586
-165-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2020
Cash and Miscellaneous Total
Cash Equivalents Receivables Assets
TAX DITCH FUND
Balance 7-1-19 $ 1 70,243 $ - $ 1 70,243
Additions 2 5,048 - 25,048
Deductions (17,732) - (17,732)
Balance 6-30-20 $ 1 77,559 $ - $ 1 77,559
ZONING DEPOSITS
Balance 7-1-19 $ 4 19,335 $ - $ 4 19,335
Additions 1 18,732 - 118,732
Deductions (95,834) - (95,834)
Balance 6-30-20 $ 4 42,233 $ - $ 4 42,233
STATE AND TOWN TAX COLLECTIONS
Balance 7-1-19 $ 2 31,867 $ - $ 2 31,867
Additions 13,527,744 - 1 3,527,744
Deductions (13,485,095) - (13,485,095)
Balance 6-30-20 $ 2 74,516 $ - $ 2 74,516
MOTOR VEHICLE ADMIN DEPOSITS
Balance 7-1-19 $ - $ - $ -
Additions 1 92,583 - 192,583
Deductions (192,583) - (192,583)
Balance 6-30-20 $ - $ - $ -
ESCHEAT - ABANDONED PROPERTY
Balance 7-1-19 $ 4 ,253 $ - $ 4,253
Additions 1 6,343 - 16,343
Deductions (5,318) - ( 5,318)
Balance 6-30-20 $ 1 5,278 $ - $ 15,278
TOTAL AGENCY FUNDS
Balance 7-1-19 $ 8 25,698 $ - $ 8 25,698
Additions 13,880,450 - 1 3,880,450
Deductions (13,796,562) - (13,796,562)
Balance 6-30-20 $ 9 09,586 $ - $ 9 09,586
-166-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2020
(CONTINUED)
Due to Accrued Liabilities
Other and Total
Governments Deposits and Escrows Liabilities
$ - $ 170,243 $ 170,243
- 25,048 25,048
- ( 17,732) (17,732)
$ - $ 177,559 $ 177,559
$ - $ 419,335 $ 419,335
- 118,732 118,732
- ( 95,834) (95,834)
$ - $ 442,233 $ 442,233
$ 231,867 $ - $ 231,867
13,527,744 - 13,527,744
(13,485,095) - ( 13,485,095)
$ 274,516 $ - $ 274,516
$ - $ - $ -
192,583 - 192,583
(192,583) - ( 192,583)
$ - $ - $ -
$ 4,253 $ - $ 4,253
16,343 - 16,343
(5,318) - (5,318)
$ 15,278 $ - $ 15,278
$ 236,120 $ 589,578 $ 825,698
13,736,670 143,780 13,880,450
(13,682,996) ( 113,566) ( 13,796,562)
$ 289,794 $ 619,792 $ 909,586
-167-

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.
-168-

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
COMBINING BALANCE SHEETS
BY GRANTOR
JUNE 30, 2020 (with Summarized Totals as of June 30, 2019)
Fed/State Total Returned 2019
GOCCP Community Reinvestment 2020 Summarized
Admin GOC Partnerships Fund Total Total
ASSETS
Cash and cash equivalents $ 131,719 $ 302,745 $ 434,464 $ 9,350 $ 443,814 $ 530,676
Accounts receivable - 1,718 1,718 - 1,718 2,594
Due from State governmental agencies - 163,720 163,720 - 163,720 108,494
Due from Federal governmental agencies - 9,501 9,501 - 9,501 33,962
Total Assets $ 131,719 $ 477,684 $ 609,403 $ 9,350 $ 618,753 $ 675,726
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued expenditures $ 16,256 $ 162,202 $ 178,458 $ - $ 178,458 $ 214,791
Due to State governmental agencies 61,353 313,656 375,009 - 375,009 351,515
Unearned revenue - - - - - 44,828
Total Liabilities 77,609 475,858 553,467 - 553,467 611,134
FUND BALANCES
Assigned 54,110 1,826 55,936 9,350 65,286 64,592
Total Fund Balances 54,110 1,826 55,936 9,350 65,286 64,592
Total Liabilities and Fund Balances $ 131,719 $ 477,684 $ 609,403 $ 9,350 $ 618,753 $ 675,726
-169-

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, 2020 (with Summarized Totals for the Year Ended June 30, 2019)
Federal/State GOCCP/GOC
Healthy MD
CASA Local Chesapeake Fam/Home Family After School
Administrative Start Care Team Helps Visiting Navigators Opportunity
REVENUES
CPA
Intergovernmental
GOC $ 68,650 $ 55,878 $ 25,000 $ 45,652 $ 66,331 $ 42,804 $ -
Subtotal CPA 6 8,650 55,878 25,000 45,652 66,331 42,804 -
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - 32,387 - - - - -
GOC - non-CPA - - - - - - -
Other State Grant Funding - - - - 296,372 - -
Investment Income - - - - - - -
Miscellaneous 5 ,632 - - 80 - - -
Subtotal Non-CPA 5 ,632 32,387 - 80 296,372 - -
Total Revenues 7 4,282 88,265 25,000 45,732 362,703 42,804 -
EXPENDITURES
CPA
Program Contracted Services - - - 36,834 - 33,270 -
Other Expenditures
Salaries 5 9,995 - 21,279 - - - -
Fringe Benefit Costs 5 ,005 - 3,721 - - - -
Auditing - 1,532 - - - 1,515 -
Consultants - - - 1,702 - - -
Professional Groups - - - - 3,383 - -
Equipment Rental - - - - - - -
Postage - - - 113 3 104 -
Office Supplies - 826 - 195 1,774 922 -
Program Supplies - 4,345 - 6,383 5,458 1,292 -
Printing and Publishing - - - - - - -
Repairs and Equipment - - - - 111 1,702 -
Equipment Operation - - - - - - -
Uniforms and Apparel - - - - - - -
Business Travel - 239 - - 205 1,518 -
Subscriptions and Dues - - - - - - -
Meetings & Conferences - 2,846 - - - 350 -
Training 3,650 - - - - - -
Advertising - - - 425 - 76 -
Marketing/Promotions - - - - - - -
Communications - 108 - - 1,616 855 -
Rent - - - - - 1,200 -
Equipment - - - - 372 - -
Other Charges - 45,982 - - 53,409 - -
Subtotal CPA Expenditures 6 8,650 55,878 25,000 45,652 66,331 42,804 -
Non-CPA
Program Contracted Services - 32,387 - - 296,372 - -
Other Expenditures
Salaries 7 4,431 - - - - - -
Fringe Benefit Costs 4 3,521 - - - - - -
Auditing 2,988 - - - - - -
Consultants 9,500 - - - - - -
Equipment Rental 2 ,770 - - - - - -
Other Contracted Services - - - - - - -
Postage 8 00 - - - - - -
Office Supplies 2 ,277 - - - - - -
Program Supplies 11,439 - - - - - -
Business Travel 1 54 - - - - - -
Subscriptions and Dues 9 99 - - - - - -
Meetings & Conferences 2 ,000 - - - - - -
Training 1 ,484 - - - - - -
Board's Expenditures 9 ,996 - - - - - -
Advertising 753 - - - - - -
Marketing/Promotions - - - - - - -
Communications 1 ,881 - - - - - -
Insurance - - - - - - -
Other Charges 1 1,139 - - 80 - - 209,692
Subtotal Non-CPA Expenditures 1 76,132 32,387 - 80 296,372 - 209,692
Total Expenditures 2 44,782 88,265 25,000 45,732 362,703 42,804 209,692
Excess of Revenues Over (Under) Expenditures (170,500) - - - - - (209,692)
OTHER FINANCING SOURCES
Transfers In for:
Program Contracted Services 1 70,500 - - - - - 209,692
Net Increase in Fund Balances $ - $ - $ - $ - $ - $ - $ -
Fund Balances, July 1
Fund Balances, June 30
-170-

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, 2020 (with Summarized Totals for the Year Ended June 30, 2019)
(CONTINUED)
Federal/State GOCCP/GOC State Federal
GOCCP/GOC State GOC GOCCP GOCCP
Community Character Operating Fund All Programs CPA Non-CPA Non-CPA Youth
Mentoring Counts RDEF Total Subtotal Subtotal Subtotal Subtotal Strategies
$ 4 0,915 $ - $ - $ 276,580 $ 345,230 $ 345,230 $ - $ - $ -
4 0,915 - - 276,580 345,230 345,230 - - -
- - - 32,387 32,387 - - - 32,387
- - 25,008 25,008 25,008 - 25,008 - -
- - - 296,372 296,372 - - - -
- - - - - - - - -
1 00 13,528 - 13,708 19,340 - - - -
1 00 13,528 25,008 367,475 373,107 - 25,008 - 32,387
4 1,015 13,528 25,008 644,055 718,337 345,230 25,008 - 32,387
- - - 70,104 70,104 70,104 - - -
2 5,360 - - 46,639 106,634 106,634 - - -
2 ,762 - - 6,483 11,488 11,488 - - -
- - - 3,047 3,047 3,047 - - -
- - - 1,702 1,702 1,702 - - -
- - - 3,383 3,383 3,383 - - -
3 75 - - 375 375 375 - - -
- - - 220 220 220 - - -
5 39 - - 4,256 4,256 4,256 - - -
4 ,826 - - 22,304 22,304 22,304 - - -
1 57 - - 157 157 157 - - -
2 04 - - 2,017 2,017 2,017 - - -
- - - - - - - - -
- - - - - - - - -
- - - 1,962 1,962 1,962 - - -
- - - - - - - - -
1 ,547 - - 4,743 4,743 4,743 - - -
2 ,401 - - 2,401 6,051 6,051 - - -
2 50 - - 751 751 751 - - -
2 ,494 - - 2,494 2,494 2,494 - - -
- - - 2,579 2,579 2,579 - - -
- - - 1,200 1,200 1,200 - - -
- - - 372 372 372 - - -
- - - 99,391 99,391 99,391 - - -
4 0,915 - - 276,580 345,230 345,230 - - -
- - 4,264 333,023 333,023 - 4,264 - 32,387
6 ,262 18,488 - 24,750 99,181 - - - -
2 ,779 1,468 - 4,247 47,768 - - - -
- - - - 2,988 - - - -
- - - - 9,500 - - - -
- - - - 2,770 - - - -
- - - - - - - - -
- - - - 800 - - - -
- 62 - 62 2,339 - - - -
- - - - 11,439 - - - -
- - - - 154 - - - -
- - - - 999 - - - -
- 590 8,000 8,590 10,590 - 8,000 - -
- - - - 1,484 - - - -
- - - - 9,996 - - - -
- - - - 753 - - - -
- - - - - - - - -
- - - - 1,881 - - - -
- - - - - - - - -
- - 12,744 222,516 233,655 - 12,744 - -
9 ,041 20,608 25,008 593,188 769,320 - 25,008 - 32,387
4 9,956 20,608 25,008 869,768 1,114,550 345,230 25,008 - 32,387
(8,941) ( 7,080) - ( 225,713) (396,213) - - - -
- - - -
8 ,941 7,080 - 225,713 396,213 - - - -
$ - $ - $ - $ - - - - - -
55,936 606,662 (5,612) 3 ,491 (25,474)
$ 55,936 $ 606,662 $ (5,612) $ 3 ,491 $ (25,474)
CONTINUED
-171-

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, 2020 (with Summarized Totals for the Year Ended June 30, 2019)
(CONTINUED)
Total
Other Community Returned 2019
Non-CPA Partnerships Reinvestment 2020 Summarized
State Grants Other Operating Funds Fund Total Total
REVENUES
CPA
Intergovernmental
GOC $ - $ - $ 345,230 $ - $ 345,230 $ 322,921
Subtotal CPA - - 345,230 - 345,230 3 22,921
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - - 32,387 - 32,387 7 8,688
GOC - non-CPA - - 25,008 - 25,008 1 05,060
Other State Grant Funding 296,372 - 296,372 - 296,372 2 96,372
Investment Income - - - 694 694 -
Miscellaneous - 1 9,340 19,340 - 19,340 1 5,746
Subtotal Non-CPA 296,372 1 9,340 373,107 694 373,801 4 95,866
Total Revenues 296,372 1 9,340 718,337 694 719,031 8 18,787
EXPENDITURES
CPA
Program Contracted Services - - 70,104 - 70,104 6 9,710
Other Expenditures
Salaries - - 106,634 - 106,634 8 3,678
Fringe Benefit Costs - - 11,488 - 11,488 1 0,035
Auditing - - 3,047 - 3,047 390
Consultants - - 1,702 - 1,702 9,104
Professional Groups - - 3,383 - 3,383 33
Equipment Rental - - 375 - 375 375
Postage - - 220 - 220 121
Office Supplies - - 4,256 - 4,256 6,549
Program Supplies - - 22,304 - 22,304 9,021
Printing and Publishing - - 157 - 157 548
Repairs and Equipment 2,017 - 2,017 1,794
Equipment Operation - - - - - 14
Uniforms and Apparel - - - 507
Business Travel - - 1,962 - 1,962 2,534
Subscriptions and Dues - - - 180
Meetings & Conferences - - 4,743 - 4,743 1,167
Training - - 6,051 - 6,051 3,020
Advertising - - 751 - 751 2,111
Marketing/Promotions - - 2,494 - 2,494 2,455
Communications - - 2,579 - 2,579 2,016
Rent - - 1,200 - 1,200 800
Equipment - - 372 - 372 -
Other Charges - - 99,391 - 99,391 1 16,759
Subtotal CPA Expenditures - - 345,230 - 345,230 3 22,921
Non-CPA
Program Contracted Services 296,372 - 333,023 - 333,023 3 73,593
Other Expenditures
Salaries - 9 9,181 99,181 - 99,181 1 11,209
Fringe Benefit Costs - 4 7,768 47,768 - 47,768 4 8,627
Auditing - 2,988 2,988 - 2,988 2,988
Consultants - 9,500 9,500 - 9,500 2 2,985
Equipment Rental - 2 ,770 2,770 - 2,770 3 ,260
Other Contracted Services - - - - - 7 8,374
Postage - 8 00 800 - 800 2 04
Office Supplies - 2 ,339 2,339 - 2,339 2 ,611
Program Supplies - 1 1,439 11,439 - 11,439 1 2,000
Business Travel - 1 54 154 - 154 7 60
Subscriptions and Dues - 9 99 999 - 999 6 02
Meetings & Conferences - 2 ,590 10,590 - 10,590 1 4,936
Training - 1 ,484 1,484 - 1,484 2 ,270
Board's Expenditures - 9 ,996 9,996 - 9,996 6 ,766
Advertising - 753 753 - 753 751
Marketing/Promotions - - - - - 2 ,865
Communications - 1 ,881 1,881 - 1,881 1 ,810
Insurance - - - - - 920
Other Charges - 2 20,911 233,655 - 233,655 2 46,784
Subtotal Non-CPA Expenditures 296,372 4 15,553 769,320 - 769,320 9 34,315
Total Expenditures 296,372 4 15,553 1,114,550 - 1,114,550 1 ,257,236
Excess of Revenues Over (Under) Expenditures - (396,213) ( 396,213) 694 (395,519) (438,449)
OTHER FINANCING SOURCES
Transfers In for:
Program Contracted Services - 3 96,213 396,213 - 396,213 4 38,449
Net Increase in Fund Balances - - - 694 694 -
Fund Balances, July 1 - (523,131) 55,936 8,656 64,592 6 4,592
Fund Balances, June 30 $ - $ (523,131) $ 55,936 $ 9,350 $ 65,286 $ 64,592
-172-

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, 2020
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 $ 360,293 $ 404,538 $ 370,238 $ (34,300) $ - $ - $ - $ -
Federal GOCCP Youth Strategies - - 32,387 32,387 - - - -
Other 296,372 296,372 296,372 - - - - -
Investment Income - - - - - - 6 94 6 94
Miscellaneous 11,000 17,722 19,340 1,618 - - - -
Total Revenues 667,665 718,632 718,337 ( 295) - - 6 94 6 94
EXPENDITURES
Program Contracted Services 367,224 388,850 403,127 ( 14,277) - - - -
Other Expenditures
Salaries 200,395 203,843 205,815 ( 1,972) - - - -
Fringe Benefit Costs 66,676 67,245 59,256 7,989 - - - -
Auditing 6,886 6 ,886 6 ,035 851 - - - -
Consultants 16,304 16,304 11,202 5,102 - - - -
Professional Groups 500 5 00 3 ,383 ( 2,883) - - - -
Equipment Rental 3,626 3 ,626 3 ,145 481 - - - -
Postage 760 7 60 1 ,020 ( 260) - - - -
Office Supplies 4,752 4 ,752 6 ,595 ( 1,843) - - - -
Program Supplies 19,224 19,224 33,743 ( 14,519) - - - -
Repairs and Equipment 1,975 1 ,975 2 ,017 (42) - - - -
Printing and Publishing 1,155 1 ,155 1 57 998 - - - -
Equipment Operation 120 1 20 - 120 - - - -
Business Travel 4,749 3 ,610 2 ,116 1,494 - - - -
Subscriptions and Dues - 4 80 9 99 ( 519) - - - -
Meetings & Conferences 5,650 5 ,650 15,333 ( 9,683) - - - -
Training 6,150 9 ,800 7 ,535 2,265 - - - -
Board's Expenditures 6,500 13,222 9 ,996 3,226 - - - -
Advertising 1,450 2 ,109 1 ,504 605 - - - -
Marketing/Promotions 1,851 1 ,851 2 ,494 ( 643) - - - -
Communications 3,984 3 ,984 4 ,460 ( 476) - - - -
Rent 1,400 1 ,400 1 ,200 200 - - - -
Equipment - - 3 72 ( 372) - - - -
Other Charges 373,103 402,072 333,046 69,026 - - - -
Total Expenditures 1,094,434 1,159,418 1,114,550 44,868 - - - -
Excess of Revenues Over (Under)
Expenditures ( 426,769) (440,786) (396,213) 44,573 - - 6 94 6 94
OTHER FINANCING SOURCES
Transfers In for:
Program Contracted Services 426,769 440,786 396,213 ( 44,573) - - - -
Net Increase in Fund Balances $ - $ - - $ - $ - $ - 6 94 $ 6 94
Fund Balances, July 1 55,936 8,656
Fund Balances, June 30 $ 55,936 $ 9,350
-174-

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, 2020
(CONTINUED)
TOTAL
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ 3 60,293 $ 4 04,538 $ 370,238 $ ( 34,300)
- - 32,387 32,387
2 96,372 2 96,372 296,372 -
- - 6 94 694
11,000 1 7,722 19,340 1,618
6 67,665 7 18,632 719,031 399
3 67,224 3 88,850 403,127 ( 14,277)
2 00,395 2 03,843 205,815 ( 1,972)
66,676 6 7,245 59,256 7,989
6,886 6,886 6 ,035 851
16,304 1 6,304 11,202 5,102
500 500 3 ,383 ( 2,883)
3,626 3,626 3 ,145 481
760 760 1 ,020 (260)
4,752 4,752 6 ,595 ( 1,843)
19,224 1 9,224 33,743 ( 14,519)
1,975 1,975 2 ,017 (42)
1,155 1,155 1 57 998
120 120 - 120
4,749 3,610 2 ,116 1,494
- 480 9 99 (519)
5,650 5,650 15,333 ( 9,683)
6,150 9,800 7 ,535 2,265
6,500 1 3,222 9 ,996 3,226
1,450 2,109 1 ,504 605
1,851 1,851 2 ,494 (643)
3,984 3,984 4 ,460 (476)
1,400 1,400 1 ,200 200
- - 3 72 (372)
3 73,103 4 02,072 333,046 69,026
1 ,094,434 1 ,159,418 1,114,550 44,868
(426,769) (440,786) (395,519) 45,267
4 26,769 4 40,786 396,213 ( 44,573)
$ - $ - 6 94 $ 694
64,592
$ 65,286
-175-

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.
-177-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
NET POSITION BY COMPONENT - GOVERNMENT-WIDE
(GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 1
2011 2012 2013 2014 2015
Governmental Activities:
Net Investment in Capital Assets $ 118,274,533 $ 118,564,684 $ 121,246,426 $ 127,369,959 $ 125,434,538
Restricted 22,399,514 5,982,041 15,691,080 17,616,132 20,464,486
Unrestricted (deficit) (1) (61,193,944) (44,686,543) (66,089,615) (71,169,310) (73,475,567)
Total Governmental Activities Net Position 79,480,103 79,860,182 ( 2) 70,847,891 (3) 73,816,781 (4) 72,423,457
Business-type Activities:
Net Investment in Capital Assets 78,069,061 76,763,695 78,693,078 79,783,160 80,787,152
Restricted 16,821,905 3,513,948 3,176,328 3,110,033 3,061,534
Unrestricted - 12,591,302 11,031,281 8,721,212 8,486,063
Total Business-type Activities Net Position 94,890,966 92,868,945 ( 2) 92,900,687 91,614,405 (4) 92,334,749
Primary Government:
Net Investment in Capital Assets 196,343,594 195,328,379 199,939,504 207,153,119 206,221,690
Restricted 39,221,419 9,495,989 18,867,408 20,726,165 23,526,020
Unrestricted (deficit) (1) (61,193,944) (32,095,241) (55,058,334) (62,448,098) (64,989,504)
Total Primary Government Net Position $ 174,371,069 $ 172,729,127 ( 2) $ 163,748,578 (3) $ 165,431,186 (4) $ 164,758,206
NOTES:
* Government-wide net position information is reported on the accrual basis of accounting.
* Accounting standards require that net position be reported in three components in the financial
statements: net investment in capital assets, restricted; and unrestricted. Net
position is considered restricted when (1) an external party, such as the state or federal
government, places a restriction on how the resources may be used, or (2) enabling
legislation is enacted by the County.
* Source: Statement of Net Position
(1) In the government-wide financial statements, the County has reported negative unrestricted amounts for some years.
This is due to the fact that the County issues general obligation bonded debt for purposes of capital construction on
behalf of the Queen Anne's County Board of Education. Absent the effect of this relationship, the County would
have reported the following:
Government-wide unrestricted (deficit) net position would have been:
Unrestricted (deficit) net position reported above $ (61,193,944) $ (32,095,241) $ (55,058,334) $ (62,448,098) $ (64,989,504)
Debt issued for capital on behalf of others 72,437,047 68,278,842 63,283,726 67,651,486 66,219,608
County (deficit) net position absent the effect of this relationship $ 11,243,103 $ 36,183,601 $ 8,225,392 $ 5,203,388 $ 1,230,104
(2) In fiscal year 2013, the County consolidated two Enterprise funds into the General Fund. This consolidation resulted in a total net position change of $539,220 between Governmental Activities
and Business-type Activities. The FY2012 Net Position has been reclassified to show this change.
(3) FY2013 Net Position of Governmental Activities was restated in fiscal year 2014.
(4) FY2014 Net Position of Governmental and Business-Type Activities was restated in fiscal year 2015.
-178-

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)
2016 2017 2018 2019 2020
$ 123,466,319 $ 120,249,244 $ 114,794,226 $ 115,143,089 $ 114,252,313
21,063,295 13,094,534 13,275,244 18,962,289 19,844,181
(78,567,505) (67,189,342) (58,025,753) (61,637,321) (48,809,467)
65,962,109 66,154,436 70,043,717 72,468,057 85,287,027
80,909,015 86,163,078 84,386,291 85,916,730 86,939,502
1,699,914 1,700,836 1,060,134 2,234,440 2,037,318
10,240,161 4,116,300 7,458,996 10,087,649 16,587,060
92,849,090 91,980,214 92,905,421 98,238,819 105,563,880
204,375,334 206,412,322 199,180,517 201,059,819 201,191,815
22,763,209 14,795,370 14,335,378 21,196,729 21,881,499
(68,327,344) (63,073,042) (50,566,757) (51,549,672) (32,222,407)
$ 158,811,199 $ 158,134,650 $ 162,949,138 $ 170,706,876 $ 190,850,907
$ (68,327,344) $ (63,073,042) $ (50,566,757) $ (51,549,672) $ (32,222,407)
63,271,304 59,207,136 58,625,356 58,007,072 55,846,036
$ (5,056,040) $ (3,865,906) $ 8,058,599 $ 6,457,400 $ 23,623,629
-179-

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
2011 2012 2013 2014 2015
Expenses
Governmental Activities:
General Government $ 15,968,633 $ 13,421,531 $ 13,639,728 $ 14,133,149 $ 10,849,277
Public Safety 25,413,678 25,469,721 26,174,144 26,666,211 25,297,450
Public Works 9,098,949 10,373,286 11,891,013 12,365,647 14,363,603
Parks & Recreation (3) 3,090,228 - - - -
Health 1,701,677 1,642,723 1,812,920 2,083,201 1,856,158
Social Services 5,001,240 4,526,166 5,560,196 5,040,139 4,775,440
Education 57,506,341 53,693,309 49,459,783 54,882,430 65,633,331
Library 1,457,336 1,302,163 1,304,076 1,336,098 1,458,348
Conservation of Natural Resources 3,811,748 2,802,337 838,775 2,395,762 587,147
Economic/Community Development 1,893,570 887,837 1,108,912 1,528,035 1,763,024
Interest and Fiscal Charges 4,078,105 4,196,072 4,042,236 3,987,943 4,039,622
Total Governmental Activities Expenses 129,021,505 118,315,145 115,831,783 124,418,615 130,623,400
Business-type Activities:
Water and Sewer 10,905,989 10,711,211 11,783,515 11,059,306 10,412,432
Golf Course (4) 4,099,507 2,269,933 538,420 515,325 496,065
Public Landings and Marinas (5) 6 7,395 110,884 535,837 544,945 537,823
Airport 1,167,655 1,457,087 913,845 807,226 1,014,491
Total Business-type Activities Expenses 16,240,546 14,549,115 13,771,617 12,926,802 12,460,811
Total Primary Government Expenses 145,262,051 132,864,260 129,603,400 137,345,417 143,084,211
Program Revenues
Governmental Activities:
General Government
Charges for Services 1,086,641 1,081,808 1,272,807 1,500,273 1,505,857
Operating Grants and Contributions 694,347 742,205 697,712 606,649 644,297
Capital Grants and Contributions 118,100 116,710 135,032 589,988 96,684
Total Revenue 1,899,088 1,940,723 2,105,551 2,696,910 2,246,838
Public Safety
Charges for Services 1,090,545 1,320,647 1,387,591 1,286,945 1,244,752
Operating Grants and Contributions 1,461,080 1,113,018 1,328,493 1,081,577 1,052,666
Capital Grants and Contributions 8 2,885 191,223 249,594 282,139 119,118
Total Revenue 2,634,510 2,624,888 2,965,678 2,650,661 2,416,536
Public Works
Charges for Services 872,352 1,107,426 1,636,604 1,425,012 1,275,538
Operating Grants and Contributions 546,719 488,027 624,653 712,550 527,538
Capital Grants and Contributions 901,289 541,887 1,687,783 2,221,299 80,000
Total Revenue 2,320,360 2,137,340 3,949,040 4,358,861 1,883,076
Parks & Recreation (3)
Charges for Services 187,901 - - - -
Operating Grants and Contributions 1 ,868 - - - -
Capital Grants and Contributions 199,698 - - - -
Total Revenue 389,467 - - - -
Social Services
Charges for Services 6 9,382 7 1,655 7 1,973 6 5,537 68,187
Operating Grants and Contributions 2,050,062 2,076,096 2,613,905 2,026,675 2,056,111
Capital Grants and Contributions 215,748 1 8,691 5 1,023 6 7,392 40,527
Total Revenue 2,335,192 2,166,442 2,736,901 2,159,604 2,164,825
Education
Charges for Services 755,443 1,169,425 1,052,691 1,721,379 1,249,332
Operating Grants and Contributions - - - - -
Capital Grants and Contributions - - - - -
Total Revenue 755,443 1,169,425 1,052,691 1,721,379 1,249,332
Library
Charges for Services - - - - -
Operating Grants and Contributions - - - - -
Capital Grants and Contributions - - - - -
Total Revenue - - - - -
Conservation of Natural Resources
Charges for Services 7 5,354 9 8,593 6 3,105 7 3,279 72,688
Operating Grants and Contributions 1,006,138 3 6,872 400,193 103,892 96,195
Capital Grants and Contributions 1,923,471 998,757 - 7 5,820 3,637
Total Revenue 3,004,963 1,134,222 463,298 252,991 172,520
Economic/Community Development
Charges for Services 4 ,236 159,492 234,100 508,000 80,558
Operating Grants and Contributions 239,893 245,143 176,216 255,100 285,344
Capital Grants and Contributions 110,561 8 1,867 575,440 (69,569) -
Total Revenue 354,690 486,502 985,756 693,531 365,902
Total Governmental Activities Program Revenues 13,693,713 11,659,542 14,258,915 14,533,937 10,499,029
-180-

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)
2016 2017 2018 2019 2020
$ 13,936,312 $ 13,177,254 $ 15,833,152 $ 16,493,064 $ 17,299,695
27,525,712 27,997,262 27,130,890 31,231,182 31,445,313
19,522,534 20,753,117 17,665,141 19,118,090 15,045,105
- - - - 7,780,241
2,032,657 2,006,219 1,996,939 1,865,300 2,176,263
5,300,871 5,418,152 5,152,409 5,804,131 4,940,431
60,752,025 59,211,517 62,296,920 62,579,905 66,848,496
1,622,848 1,710,668 1,785,580 1,858,711 1,916,365
1,799,234 616,237 2,567,600 2,696,971 1,423,080
3,391,547 1,860,222 2,477,129 1,808,000 2,281,480
4,345,527 4,150,101 4,294,929 4,712,864 4,391,332
140,229,267 136,900,749 141,200,689 148,168,218 155,547,801
10,615,466 11,818,087 12,297,109 11,232,955 11,602,537
505,085 540,504 509,150 584,718 541,335
529,943 572,360 534,966 1,342,308 683,738
966,896 1,053,899 1,077,168 1,434,031 968,205
12,617,390 13,984,850 14,418,393 14,594,012 13,795,815
152,846,657 150,885,599 155,619,082 162,762,230 169,343,616
1,565,170 1,552,164 1,669,311 1,769,520 1,509,985
582,571 563,016 660,790 716,683 428,812
(30,000) - 1,080,084 480,500 520,277
2,117,741 2,115,180 3,410,185 2,966,703 2,459,074
1,354,350 1,350,626 1,505,267 1,415,187 1,379,621
1,088,597 1,037,879 1,294,733 1,161,505 1,697,018
175,653 5,406 166,001 176,970 112,845
2,618,600 2,393,911 2,966,001 2,753,662 3,189,484
1,337,358 1,472,664 1,779,206 1,784,040 817,088
1,029,019 980,075 822,659 1,155,251 1,233,626
108,880 161,084 282,028 1,353,948 45,640
2,475,257 2,613,823 2,883,893 4,293,239 2,096,354
- - - - 822,605
- - - - 37,060
- - - - 2,237,549
- - - - 3,097,214
76,404 73,066 71,131 91,183 72,840
1,834,000 1,893,648 2,018,289 2,120,065 2,273,959
140,400 58,500 58,500 175,960 362,900
2,050,804 2,025,214 2,147,920 2,387,208 2,709,699
1,230,994 1,319,433 1,272,301 1,318,609 1,593,200
- - - - -
- - - - -
1,230,994 1,319,433 1,272,301 1,318,609 1,593,200
- - - - -
- - - - -
- - - 43,059 107,575
- - - 43,059 107,575
70,708 60,826 110,655 126,940 136,458
68,152 186,333 131,321 94,814 117,820
573,003 - 1,439,284 2,118,200 831,901
711,863 247,159 1,681,260 2,339,954 1,086,179
311,000 620,000 316,500 - 205,000
156,804 231,360 810,319 205,300 757,258
- - - - -
467,804 851,360 1,126,819 205,300 962,258
11,673,063 11,566,080 15,488,379 16,307,734 17,301,037
CONTINUED
-181-

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)
2011 2012 2013 2014 2015
Business-type Activities:
Water and Sewer
Charges for Services $ 8,192,471 $ 7,977,667 $ 8,181,434 $ 8,341,848 $ 8,840,213
Operating Grants and Contributions - 5 5,728 161,600 9 0,000 90,000
Capital Grants and Contributions 837,426 347,573 2,048,768 665,268 1,862,257
Total Revenue 9,029,897 8,380,968 10,391,802 9,097,116 10,792,470
Golf Course (4)
Charges for Services 1,568,227 1,501,550 313,364 297,293 295,955
Operating Grants and Contributions 3 9,572 5 2,915 - - -
Capital Grants and Contributions 196,487 2 8,680 - - -
Total Revenue 1,804,286 1,583,145 313,364 297,293 295,955
Public Landings and Marinas (5)
Charges for Services 8 4,987 102,290 440,270 423,478 423,723
Operating Grants and Contributions 1 6,241 1 4,183 4 2,914 3 6,439 43,304
Capital Grants and Contributions 588,326 7 8,314 1 8,692 - -
Total Revenue 689,554 194,787 501,876 459,917 467,027
Airport
Charges for Services 3 7,955 5 8,589 4 8,072 4 9,061 53,200
Operating Grants and Contributions 3 ,715 4 7,412 2 ,621 2 ,420 73,311
Capital Grants and Contributions 448,600 693,162 2,472,782 7 ,457 -
Total Revenue 490,270 799,163 2,523,475 5 8,938 126,511
Total Business-type Activities Program Revenues 12,014,007 10,958,063 13,730,517 9,913,264 11,681,963
Total Primary Government Program Revenues 25,707,720 22,617,605 27,989,432 24,447,201 22,180,992
Net (Expense) Revenue (1)
Governmental activities ( 115,327,792) ( 106,655,603) ( 101,572,868) ( 109,884,678) ( 120,124,371)
Business-type activities (4,226,539) (3,591,052) (41,100) (3,013,538) (778,848)
Total Primary Government Net Expense $ ( 119,554,331) $ ( 110,246,655) $ ( 101,613,968) $ ( 112,898,216) $ ( 120,903,219)
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes (2) $ 96,093,533 $ 105,693,926 $ 107,978,036 $ 112,123,625 $ 116,821,607
Investment income 136,523 126,650 107,095 9 5,286 94,092
Gain on Sale of Capital Assets 281,158 2 7,627 163,426 346,765 1,098,632
Miscellaneous 711,868 1,254,255 1,051,760 877,629 1,076,893
Transfers In (Out) (611,922) (605,996) (337,843) (589,737) (360,177)
Total Governmental Activities 96,611,160 106,496,462 108,962,474 112,853,568 118,731,047
Business-type Activities:
Investment income 407,629 374,665 356,374 343,568 323,585
Gain on Sale of Capital Assets - - - - -
Miscellaneous 884,772 1,127,590 855,504 793,951 815,430
Transfers In (Out) 611,922 605,996 359,277 589,737 360,177
Total Business-type Activities 1,904,323 2,108,251 1,571,155 1,727,256 1,499,192
Total Primary Government 98,515,483 108,604,713 110,533,629 114,580,824 120,230,239
Change in Net Position
Governmental activities (18,716,632) (159,141) 7,389,606 2,968,890 (1,393,324)
Business-type activities (2,322,216) (1,482,801) 1,530,055 (1,286,282) 720,344
Total Primary Government $ ( 21,038,848) $ (1,641,942) $ 8,919,661 $ 1,682,608 $ (672,980)
NOTES:
* Government-wide net position information is reported on the accrual basis of accounting.
* Source: Statement of Activities.
(1) Net (expense)/revenue is the difference between the expenses and program revenues of a function or program. It indicates
the degree to which a function or program is supported with its own fees and program-specific grants versus its reliance
upon funding from taxes and general revenues. Numbers in parentheses indicate that expenses were greater than program
revenues and therefore general revenues were needed to finance that function or program. Numbers without parentheses
mean that program revenues were more than sufficient to cover expenses.
(2) See Table 2-b for detail of General Tax Revenues.
(3) For years FY12 through FY19, Parks & Recreation governmental activities are included in public works (parks) and social services (recreation).
(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.
-182-

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)
2016 2017 2018 2019 2020
$ 8,956,360 $ 8,222,317 $ 9,214,383 $ 10,524,474 $ 13,873,082
85,099 90,000 90,000 520,000 2,541,550
1,958,051 2,222,796 4,198,378 3,626,906 1,974,341
10,999,510 10,535,113 13,502,761 14,671,380 18,388,973
305,528 318,599 340,123 373,014 399,603
- - - - -
- - - - -
305,528 318,599 340,123 373,014 399,603
423,427 443,176 451,524 454,071 538,760
36,781 33,542 104,829 888,592 10,447
- - - - -
460,208 476,718 556,353 1,342,663 549,207
45,916 33,256 25,857 24,710 24,130
52,837 245,738 60,858 725,109 95,052
- - - - -
98,753 278,994 86,715 749,819 119,182
11,863,999 11,609,424 14,485,952 17,136,876 19,456,965
23,537,062 23,175,504 29,974,331 33,444,610 36,758,002
( 128,556,204) ( 125,334,669) ( 125,712,310) ( 131,860,484) ( 138,246,764)
(753,391) (2,375,426) 67,559 2,542,864 5,661,150
$ ( 129,309,595) $ ( 127,710,095) $ ( 125,644,751) $ ( 129,317,620) $ ( 132,585,614)
$ 121,011,135 $ 123,299,031 $ 131,444,679 $ 137,285,550 $ 148,876,477
174,691 444,063 978,955 1,772,464 1,393,017
161,106 53,936 87,734 25,823 44,343
949,046 2,065,465 630,895 979,201 900,976
(201,122) (335,499) (183,026) (1,341,011) (149,079)
122,094,856 125,526,996 132,959,237 138,722,027 151,065,734
320,443 361,840 439,716 550,691 589,126
- - - 33,100 17,876
746,167 809,211 865,879 865,732 907,830
201,122 335,499 183,026 1,341,011 149,079
1,267,732 1,506,550 1,488,621 2,790,534 1,663,911
123,362,588 127,033,546 134,447,858 141,512,561 152,729,645
(6,461,348) 192,327 7,246,927 6,861,543 12,818,970
514,341 (868,876) 1,556,180 5,333,398 7,325,061
$ ( 5,947,007) $ ( 676,549) $ 8,803,107 $ 12,194,941 $ 20,144,031
-183-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
GENERAL TAX REVENUES - GOVERNMENTAL ACTIVITIES
LAST TEN FISCAL YEARS
Table 2-b
2011 2012 2013 2014 2015
Local Property Taxes $ 60,070,368 $ 65,937,415 $ 65,591,225 $ 64,712,683 $ 6 4,672,721
Local Income Tax 30,624,679 34,028,234 35,769,303 40,899,804 4 4,643,870
Other Local Taxes 5,398,486 5,728,277 6,617,508 6,511,138 7,505,016
Total Taxes - Governmental Activities $ 96,093,533 $ 105,693,926 $ 107,978,036 $ 112,123,625 $ 1 16,821,607
2016 2017 2018 2019 2020
Local Property Taxes $ 65,185,546 $ 66,487,004 $ 67,736,404 $ 70,670,569 $ 7 1,874,566
Local Income Tax 47,928,725 48,624,679 55,211,695 57,728,293 6 7,698,447
Other Local Taxes 7,896,864 8,187,348 8,496,580 8,886,688 9,303,464
Total Taxes - Governmental Activities $ 121,011,135 $ 123,299,031 $ 131,444,679 $ 137,285,550 $ 1 48,876,477
NOTES:
* Government-wide general tax revenue information is reported on the accrual basis of accounting.
* Source: Statement of Activities.
-184-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 3
2011 2012 2013 2014 2015
General Fund:
Nonspendable $ 4,000 $ 5 55,215 $ 6 26,122 $ 480,385 $ 6 87,777
Restricted 333,798 340,670 8 ,111,614 8,375,368 8 ,681,112
Committed 657,068 695,944 - 1,157,360 2 ,000,000
Assigned 70,000 - 1 ,284,657 1,284,875 2 ,034,875
Unassigned 4,753,656 1 1,207,265 5 ,965,003 7,123,519 7 ,793,085
Total General Fund 5,818,522 1 2,799,094 1 5,987,396 18,421,507 2 1,196,849
All Other Governmental Funds:
Nonspendable 4,401,483 5,136,024 5 ,406,512 5,470,608 5 ,919,048
Restricted 22,065,716 12,255,292 1 2,724,859 21,824,970 1 7,794,372
Committed 1,820,818 2,054,749 3 ,480,382 4,097,033 4 ,209,177
Assigned 14,745,215 18,654,017 2 4,665,235 25,939,319 2 3,093,224
Unassigned (172,381) (157,828) (135,515) ( 115,800) (108,185)
Total All Other Governmental Funds 42,860,851 37,942,254 4 6,141,473 57,216,130 5 0,907,636
Total All Governmental Funds $ 48,679,373 $ 50,741,348 $ 6 2,128,869 $ 75,637,637 $ 7 2,104,485
2016 2017 2018 2019 2020
General Fund:
Nonspendable $ 586,481 $ 754,921 $ 1 ,001,610 $ 1,616,447 $ 2 ,400,664
Restricted 9,002,389 1 0,626,394 1 0,999,800 14,361,899 1 4,711,547
Committed 3,000,000 4,000,000 5 ,027,897 6,000,000 6 ,998,256
Assigned 1,926,782 1,998,415 1 ,483,827 1,224,503 1 ,099,170
Unassigned 8,468,591 8,830,530 1 1,142,331 11,856,474 1 5,874,992
Total General Fund 22,984,243 26,210,260 2 9,655,465 35,059,323 4 1,084,629
All Other Governmental Funds:
Nonspendable 6,146,072 7,552,462 7 ,583,553 - -
Restricted 21,316,088 8,900,465 6 ,815,341 12,598,139 1 5,121,784
Committed 3,425,701 1 3,447,283 1 5,202,215 18,514,079 2 1,296,829
Assigned 18,029,073 16,045,167 1 9,618,643 23,573,581 2 3,721,935
Unassigned (115,129) (53,665) (48,758) ( 28,164) (24,133)
Total All Other Governmental Funds 48,801,805 45,891,712 4 9,170,994 54,657,635 6 0,116,415
Total All Governmental Funds $ 71,786,048 $ 72,101,972 $ 7 8,826,459 $ 89,716,958 $ 1 01,201,044
NOTES:
* Fund balance information for governmental funds is reported on the modified accrual basis of accounting.
* Source: Balance Sheet, Governmental Funds.
-185-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
2011 2012 2013 2014 2015
Revenues
Taxes
Local Property Taxes $ 6 0,097,959 $ 65,918,832 $ 65,554,079 $ 64,701,622 $ 64,672,292
Local Income Taxes 2 9,527,496 3 5,969,879 3 9,438,906 4 0,326,921 42,889,715
Other Local Taxes 5 ,398,486 5 ,728,277 6 ,617,508 6 ,511,137 7,505,016
State Shared Taxes 2 30,401 3 06,235 5 10,726 7 49,366 557,834
Licenses and Permits 9 19,663 8 77,365 1 ,004,774 1 ,080,891 1,062,917
Intergovernmental 8 ,777,729 5 ,867,211 7 ,588,691 5 ,588,984 4,030,576
Bond Interest Reimbursement - Build America Bond 4 38,022 4 32,212 4 06,337 3 83,777 375,323
Charges for Current Services 3 ,143,846 3 ,908,998 4 ,594,240 5 ,357,919 4,251,835
Fines and Forfeitures 78,345 2 22,683 1 19,857 1 41,615 182,160
Capital Contributions - Developer - - - 1 02,316 -
Investment Income 1 36,523 1 26,650 1 07,095 95,286 94,092
Donations 1 09,342 46,332 36,332 39,055 41,391
Miscellaneous 7 08,455 1 ,254,255 1 ,051,760 8 77,629 1,076,893
Total Revenues 1 09,566,267 120,658,929 127,030,305 125,956,518 126,740,044
Expenditures
Current
General Government (1) 1 0,397,457 9 ,171,830 9 ,282,310 1 0,649,489 8,833,255
Public Safety 2 1,127,321 2 0,985,077 2 1,275,229 2 2,266,458 23,133,608
Public Works 7 ,277,767 7 ,733,226 9 ,615,805 9 ,967,363 12,041,969
Parks and Recreation 2 ,521,175 - - - -
Health 1 ,670,222 1 ,604,462 1 ,811,402 2 ,030,740 1,822,856
Social Services 4 ,098,650 3 ,533,022 4 ,051,741 3 ,474,886 3,602,146
Education 5 7,566,865 5 3,755,497 4 8,418,107 5 9,752,944 65,683,908
Library 1 ,433,725 1 ,277,993 1 ,278,228 1 ,310,250 1,432,500
Conservation of Natural Resources 3 ,872,916 2 ,794,262 8 90,480 2 ,363,254 565,289
Economic/Community Development 1 ,715,524 7 58,089 8 98,129 1 ,306,516 1,616,784
Miscellaneous 4 ,699,452 3 ,704,702 4 ,862,189 3 ,202,417 3,535,585
Capital Outlay 4 ,838,581 2 ,755,949 3 ,370,909 8 ,669,375 8,733,509
Debt Service
Principal 6 ,964,558 7 ,095,307 7 ,069,406 7 ,210,561 7,444,611
Debt Issuance Costs 1 29,671 1 62,021 (94) 1 96,870 403,572
Interest and Fiscal Charges 3 ,629,426 4 ,116,939 3 ,675,628 3 ,501,230 3,846,823
Total Expenditures 1 31,943,310 119,448,376 116,499,469 135,902,353 142,696,415
Excess (Deficiency) of Revenues over (under) Expenditures (22,377,043) 1 ,210,553 1 0,530,836 (9,945,835) ( 15,956,371)
Other Financing Sources (Uses)
Issuance of Debt 2 1,897,570 8 ,010,000 5 64,068 2 2,405,542 25,384,493
Other Financing Use - Proceeds of Refunding Bonds - - - - -
Bond Premiums 1 39,136 7 13,235 (101) 1 ,118,097 1,901,240
Payments to Bond Refunding Agent - (8,557,455) - - ( 14,881,834)
Other Financing Use - Debt Service - Principal - - - - -
Proceeds of Capital Asset Disposals 5 82,601 47,396 3 08,856 4 58,759 1,331,608
Insurance Proceeds 99,028 11,631 20,070 61,942 57,916
Transfers In 5 ,386,256 9 ,635,881 1 0,851,904 5 ,861,261 5,079,641
Transfers Out (6,614,521) (10,369,909) (11,228,409) (6,450,998) ( 6,449,845)
Total Other Financing Sources (Uses) 2 1,490,070 (509,221) 5 16,388 2 3,454,603 12,423,219
Special Item - 1 ,360,643 - - -
Net Increase (Decrease) in Fund Balances $ (886,973) $ 2 ,061,975 $ 11,047,224 $ 13,508,768 $ ( 3,533,152)
Debt service as a percentage of non-capital expenditures (2, 3) 8.34% 9.66% 9.54% 8.44% 8.43%
NOTES:
* Governmental fund information is reported on the modified accrual basis of accounting.
* Source: Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
and the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities.
(1) For all fiscal years, "General Government" includes amounts previously classified as "Miscellaneous," "Intergovernmental" and/or "Contingency."
(2) Only the principal and interest components of debt service expenditures are included in the calculation of the ratio of total debt service expenditures to noncapital expenditures.
(3) Noncapital expenditures represents Total Expenditures above, less the Net Increase in Capital Assets from the Reconciliation between the Government-Wide Statement of Activities
and the Statement of Revenues, Expenditures, and Changes in Fund Balance. Only the assets acquired (not included assets transferred or donated) from the reconciliation are used in the calculation.
-186-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
(CONTINUED)
2016 2017 2018 2019 2020
$ 64,946,443 $ 66,501,901 $ 67,944,730 $ 70,615,293 $ 71,682,389
46,424,552 48,578,044 51,834,189 55,282,162 61,547,651
7,896,865 8,187,348 8,496,580 8,886,688 9,303,464
623,256 708,566 836,677 1,171,668 1,192,293
1,078,144 1,123,072 1,167,444 1,224,381 1,083,317
4,696,561 3,987,308 7,539,052 8,284,699 9,506,419
364,799 350,254 334,858 319,362 -
4,617,730 5,114,605 5,298,701 5,088,123 5,320,465
250,110 211,102 258,226 192,975 133,015
- - - - -
174,691 444,063 978,955 1,772,464 1,393,017
45,773 6 0,217 5 7,635 3 1,084 143,375
949,045 2,065,465 630,895 979,201 900,976
132,067,969 137,331,945 145,377,942 153,848,100 162,206,381
9,817,062 10,382,078 10,640,065 10,542,151 10,610,554
23,523,103 23,866,030 25,049,431 26,804,113 27,648,023
15,080,454 15,506,684 15,235,104 16,163,026 12,749,864
- - - - 6,995,840
1,992,208 1,967,956 1,971,460 1,832,104 2,147,035
3,835,730 4,013,664 4,129,134 4,377,273 4,513,642
60,808,143 59,266,025 62,352,046 62,640,409 66,904,857
1,597,000 1,684,820 1,765,190 1,833,513 1,891,167
1,744,260 565,938 2,577,735 2,717,738 1,475,572
3,188,928 1,710,899 2,433,171 1,638,265 2,107,676
4,766,722 4,185,652 5,348,568 5,729,955 5,308,680
11,050,384 14,591,632 12,311,551 9,323,882 4,963,004
7,667,316 8,074,013 7,149,537 7,855,820 8,624,604
218,799 196,150 229,894 211,447 316,027
3,696,719 4,104,254 4,280,553 4,586,387 4,676,955
148,986,828 150,115,795 155,473,439 156,256,083 160,933,500
( 16,918,859) ( 12,783,850) ( 10,095,497) ( 2,407,983) 1,272,881
15,484,639 12,775,926 16,000,000 11,000,000 9,000,000
8,042,773 - - - 14,682,184
1,650,448 618,681 908,973 1,011,998 3,654,843
- - - - -
( 8,446,336) - - - ( 17,043,453)
18,100 5 5,189 5 4,097 231,588 3 0,949
153,534 1 2,241 3 9,940 3 ,114 3 5,761
9,941,051 6,331,482 8,220,201 12,588,897 9,690,474
( 10,243,787) ( 6,693,745) ( 8,403,227) ( 13,929,908) ( 9,839,553)
16,600,422 13,099,774 16,819,984 10,905,689 10,211,205
- - - - -
$ ( 318,437) $ 315,924 $ 6,724,487 $ 8,497,706 $ 11,484,086
8.16% 8.99% 8.00% 8.47% 8.53%
-187-

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
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
2015 1,526,533,795 5,971,094,589 7 ,497,628,384 0 .8471 71,076,850 7,568,705,234 7 08,231,797 8 ,276,937,031
2016 1,536,236,637 6,015,729,665 7 ,551,966,302 0 .8471 74,544,230 7,626,510,532 7 13,843,531 8 ,340,354,063
2017 1,578,390,091 6,136,189,107 7 ,714,579,198 0 .8471 77,685,020 7,792,264,218 7 71,576,578 8 ,563,840,796
2018 1,619,626,376 6,277,865,272 7 ,897,491,648 0 .8471 76,903,490 7,974,395,138 7 84,345,727 8 ,758,740,865
2019 1,668,339,027 6,485,471,694 8 ,153,810,721 0 .8471 110,703,740 8,264,514,461 8 10,049,666 9 ,074,564,127
2020 1,796,512,410 6,587,063,708 8 ,383,576,118 0 .8471 103,282,520 8,486,858,638 8 39,013,301 9 ,325,871,939
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.
-189-

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)
2011 $ 0 .7671
2012 0 .8471
2013 0 .8471
2014 0 .8471
2015 0 .8471
2016 0 .8471
2017 0 .8471
2018 0 .8471
2019 0 .8471
2020 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.
-190-

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
2011 $ 0 .0600
2012 0 .0600
2013 0 .0600
2014 0 .0600
2015 0 .0600
2016 0 .0600
2017 0 .0600
2018 0 .0600
2019 0 .0600
2020 0 .0600
NOTES:
* Tax rates are per $100 of assessed value.
* The personal property tax rate for Queen Anne's County is zero.
-191-

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
2011 $ 0 .3800 $ 0 .1000 $ 0 .3400 $ 0 .2800 $ 0.1800
2012 0.3800 0.2000 0 .3400 0.2800 0.1800
2013 0.3800 0.2000 0 .3400 0.2800 0.1800
2014 0.3800 0.2000 0 .3400 0.2800 0.1800
2015 0.3800 0.2000 0 .3400 0.2800 0.1800
2016 0.3800 0.2000 0 .3400 0.2800 0.1800
2017 0.4100 0.2000 0 .3400 0.2800 0.1800
2018 0.4050 0.2000 0 .3400 0.2800 0.1800
2019 0.4050 0.2000 0 .3400 0.2800 0.1800
2020 0.4050 0.2000 0 .3400 0.2800 0.1800
NOTES:
* Tax rates are per $100 of assessed value.
* The personal property tax rate for Queen Anne's County is zero.
* Taxes collected by the County for other fiscal units, including overlapping governments, are remitted
based on actual collections.
-192-

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
$ 0.1904 $ 0 .1670 $ 0 .3600
0.1890 0.1670 0 .3600
0.1890 0.1670 0 .3600
0.1890 0.1670 0 .3600
0.1895 0.1670 0 .3600
0.1850 0.1670 0 .3600
0.1810 0.1670 0 .5788
0.1773 0.1670 0 .3600
0.1726 0.1670 0 .3600
0.1744 0.1670 0 .3600
-193-

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, 2020
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 73,986,533 0.87 %
KRM-Chesapeake LLC 29,424,900 0.35
Chesapeake Bay Beach Club LLC 18,272,667 0.22
Maryland General Land Co LLC 16,520,000 0.19
Great American Life Insurance Co 14,671,967 0.17
Beach Harbor Campers Co-Operative 12,910,800 0.15
Kent Towne Market LLC 13,544,234 0.16
Anne Arundel Real Estate Holding 11,651,867 0.14
Mears Point Association 11,628,367 0.14
Kent Narrows Properties 9,015,800 0.11
Total $ 211,627,135 2.50 %
Total Assessable Base $ 8,486,858,638 100.00 %
For the Fiscal Year Ended June 30, 2011
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 51,409,800 0.66 %
KRM Development Corporation 38,637,130 0.50
White's Heritage Partners 23,343,628 0.30
Great American Life Insurance Company 17,689,900 0.23
Beach Harbor Campers Cooperative Inc 13,653,800 0.18
Pasquale Didonato 12,546,432 0.16
Reliable Development Company 12,204,006 0.16
K. Hovnanian 11,908,826 0.15
Mears Point Association 11,310,900 0.15
Symphony Centre 10,951,000 0.14
Total $ 203,655,422 2.63 %
Total Assessable Base $ 7,740,096,715 1 00.00 %
Source: State of Maryland Department of Assessments and Taxation
-194-

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
2011 $ 58,758,234 $ 5 8,696,129 99.89% $ 55,170 $ 58,751,299 99.99%
2012 64,549,671 6 4,459,862 99.86% 79,219 6 4,539,081 99.98%
2013 63,904,147 6 3,596,067 99.52% 54,255 6 3,650,322 99.60%
2014 63,184,321 6 2,834,349 99.45% 89,285 6 2,923,634 99.59%
2015 63,338,629 6 3,231,601 99.83% 68,072 6 3,299,673 99.94%
2016 63,799,184 6 3,647,404 99.76% 79,414 6 3,726,818 99.89%
2017 65,217,648 6 5,107,115 99.83% 107,783 6 5,214,898 99.83%
2018 66,768,776 6 6,721,619 99.93% 30,166 6 6,751,785 99.97%
2019 68,887,556 6 8,778,389 99.84% 42,225 6 8,820,614 99.90%
2020 70,825,936 7 0,375,695 99.36% - 7 0,375,695 99.36%
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.
-195-

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
2011 $ 102,791,729 $ 1,070,632 $ 5 4,089 $ 1 03,916,450
2012 97,127,263 889,256 - 98,016,519
2013 90,092,100 1,146,755 - 91,238,855
2014 107,883,563 958,156 - 108,841,719
2015 112,060,053 784,785 - 112,844,838
2016 118,977,909 1,913,199 - 120,891,108
2017 123,519,157 1,698,425 - 125,217,582
2018 132,567,304 1,417,461 - 133,984,765
2019 135,985,079 1,098,323 - 137,083,402
2020 136,513,411 775,589 - 137,289,000
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)
2011 $ 3,458,828 $ 16,692,171 $ - $ 20,150,999 $ 124,067,449 7.20% $ 2 ,590
2012 2,936,543 15,238,959 - 18,175,502 116,192,021 6.95% 2 ,431
2013 2,490,475 13,767,769 - 16,258,244 107,497,099 6.12% 2 ,210
2014 2,053,736 12,584,475 - 14,638,211 123,479,930 6.97% 2 ,538
2015 3,540,295 11,388,918 - 14,929,213 127,774,051 6.89% 2 ,618
2016 3,520,859 10,471,639 - 13,992,498 134,883,606 7.24% 2 ,780
2017 3,217,479 16,296,744 - 19,514,223 144,731,805 7.64% 2 ,960
2018 2,976,195 25,484,821 - 28,461,016 162,445,781 8.39% 3 ,322
2019 2,725,011 29,419,756 - 32,144,767 169,228,169 8.22% 3 ,335
2020 2,475,881 31,932,369 - 34,408,250 171,697,250 7.29% 3 ,264
NOTES:
(1) See Table 14 for personal income and population data, which are used in calculating these ratios.
-196-

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)
2011 $ 1 06,250,557 1.37% $ 2,218
2012 1 00,063,806 1.30% 2,093
2013 9 2,582,575 1.21% 1,903
2014 1 09,937,299 1.46% 2,260
2015 1 15,600,348 1.53% 2,369
2016 1 22,498,768 1.61% 2,525
2017 1 26,736,636 1.63% 2,592
2018 1 35,543,499 1.70% 2,772
2019 1 38,710,090 1.68% 2,733
2020 1 38,989,292 1.64% 2,643
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.
-197-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF NET DIRECT AND OVERLAPPING DEBT
AS OF JUNE 30, 2020
Table 11
Name of Jurisdiction Gross Debt
Queen Anne's County:
County Government
Total Net Direct Debt (1) $ 1 37,289,000
Towns: (2)
Centreville (100%) 1 6,351,095
Millington (100%) 1 ,100,000
Queenstown (100%) 5 ,291,975
Sudlersville (100%) (3) 4 ,648,000
Total Net Overlapping Debt 2 7,391,070
Total Net Direct and Overlapping Debt $ 1 64,680,070
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.
(3) FY20 gross debt could not be obtained. The amount being reported is the amount confirmed from FY19.
-199-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
2011 2012 2013 2014 2015
Computation of Legal Debt Margin - for Queen Anne's County
Other than Debt related to the Sanitary District:
Authorized debt limit under Title 5 (Subtitle 4) (1) $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000
Authorized bonded debt under specific public laws
Enterprise Funds, excluding Sanitary District (4) 2 ,340,495 2 ,304,876 2 ,160,475 2 ,053,736 3 ,540,295
General Obligation Debt (4) 1 02,791,729 9 7,127,263 9 0,092,100 1 07,883,563 1 12,060,053
Subtotal 1 05,132,224 9 9,432,139 9 2,252,575 1 09,937,299 1 15,600,348
Total authorized debt under Title 5 and specific public laws 1 13,132,224 1 07,432,139 1 00,252,575 1 17,937,299 1 23,600,348
LESS Outstanding bonds, notes payable, and capital leases (5) 1 24,067,449 1 16,192,021 1 07,497,099 1 23,479,930 1 27,774,051
Less: Sanitary District debt (4) 1 7,803,690 1 5,870,626 1 4,097,769 1 2,584,475 1 1,388,918
Subtotal 1 06,263,759 1 00,321,395 9 3,399,330 1 10,895,455 1 16,385,133
Legal Debt Margin - Other than the Sanitary District $ 6 ,868,465 $ 7 ,110,744 $ 6 ,853,245 $ 7 ,041,844 $ 7 ,215,215
Debt related to the Sanitary District Proprietary Fund:
Total taxable assessed value (3) $ 7,740,096,715 $ 7,685,372,199 $ 7,620,480,255 $ 7,540,259,768 $ 7,568,705,234
Plus exempt property (3) 6 44,654,739 6 94,372,116 7 32,300,804 6 96,880,673 7 08,231,797
Total assessed value $ 8,384,751,454 $ 8,379,744,315 $ 8,352,781,059 $ 8,237,140,441 $ 8,276,937,031
Debt Limit - 6% of total assessed value (2) $ 5 03,085,087 $ 502,784,659 $ 501,166,864 $ 494,228,426 $ 496,616,222
LESS Sanitary District 1 7,803,690 1 5,870,626 1 4,097,769 1 2,584,475 1 1,388,918
Less: Restricted Cash and Investments in the
Debt Service Fund available for payment of principal 3 ,658,194 3 ,244,564 2 ,840,468 2 ,763,304 2 ,695,383
1 4,145,496 1 2,626,062 1 1,257,301 9 ,821,171 8 ,693,535
Legal Debt Margin - Sanitary District $ 4 88,939,591 $ 4 90,158,597 $ 4 89,909,563 $ 4 84,407,255 $ 4 87,922,687
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.
-200-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
(CONTINUED)
2016 2017 2018 2019 2020
$ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000
3 ,520,859 3 ,217,479 2 ,976,195 2 ,725,011 2 ,475,881
1 18,977,909 1 23,519,157 1 32,567,304 1 35,985,079 1 36,513,411
1 22,498,768 1 26,736,636 1 35,543,499 1 38,710,090 1 38,989,292
1 30,498,768 1 34,736,636 1 43,543,499 1 46,710,090 1 46,989,292
1 34,883,606 1 44,731,805 1 62,445,781 1 69,228,169 1 71,697,250
1 0,471,639 1 6,296,744 2 5,484,821 2 9,419,756 3 1,932,369
1 24,411,967 1 28,435,061 1 36,960,960 1 39,808,413 1 39,764,881
$ 6 ,086,801 $ 6 ,301,575 $ 6 ,582,539 $ 6 ,901,677 $ 7 ,224,411
$ 7,626,510,532 $ 7,792,264,218 $ 7,974,395,138 $ 8,264,514,461 $ 8,486,858,638
7 13,843,531 7 71,576,578 7 84,345,727 8 10,049,666 8 39,013,301
$ 8,340,354,063 $ 8,563,840,796 $ 8,758,740,865 $ 9,074,564,127 $ 9,325,871,939
$ 500,421,244 $ 513,830,448 $ 525,524,452 $ 544,473,848 $ 559,552,316
1 0,471,639 1 6,296,744 2 5,484,821 2 9,419,756 3 1,932,369
1 ,120,775 947,445 1 ,060,045 1 ,259,440 2 ,031,867
9 ,350,864 1 5,349,299 2 4,424,776 2 8,160,316 2 9,900,502
$ 4 91,070,380 $ 4 98,481,149 $ 5 01,099,676 $ 5 16,313,532 $ 5 29,651,814
-201-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LOCAL DEBT LIMIT
LAST TEN FISCAL YEARS
Table 12-b
2011 2012 2013 2014 2015
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) $ 7,740,096,715 $ 7,685,372,199 $ 7,620,480,255 $ 7,540,259,768 $ 7,568,705,234
2.5% 2.5% 2.5% 2.5% 2.5%
2.5% of Total Taxable Assessed Base $ 193,502,418 $ 192,134,305 $ 190,512,006 $ 188,506,494 $ 189,217,631
LESS Outstanding and New General Obligation Debt applicable to limit (2) (3)
Enterprise Funds' Debt - Bonds $ 3 ,458,828 $ 2 ,936,543 $ 2,490,475 $ 2,053,736 $ 3 ,540,295
General Obligation Debt - Bonds and Notes 1 03,862,361 9 8,016,519 91,238,855 108,841,719 1 12,844,838
Total Outstanding and New General Obligation Debt $ 107,321,189 $ 100,953,062 $ 93,729,330 $ 110,895,455 $ 116,385,133
2.5% of Total Taxable Assessed Base in Excess of
Total Outstanding and New General Obligation Debt $ 8 6,181,229 $ 9 1,181,243 $ 96,782,676 $ 77,611,039 $ 7 2,832,498
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) 47,899 47,798 4 8,650 4 8,650 48,804
$3,000 Per Capita $ 3,000 $ 3,000 $ 3 ,000 $ 3 ,000 $ 3,000
$ 143,697,000 $ 143,394,000 $ 145,950,000 $ 145,950,000 $ 146,412,000
LESS Outstanding and New General Obligation Debt (1) $ 107,321,189 $ 100,953,062 $ 93,729,330 $ 110,895,455 $ 116,385,133
$3,000 Per Capita in Excess of
Total Outstanding and New General Obligation Debt $ 3 6,375,811 $ 4 2,440,938 $ 52,220,670 $ 35,054,545 $ 3 0,026,867
NOTES:
(1) See Table 5 - Total Taxable Assessed Value.
(2) See Note 9 A - Changes in Noncurrent Liabilities.
(3) General Obligation Debt includes debt relating to the Sanitary District, because such debt is backed by the full faith
and credit of the County, but excludes all capital leases, which are collateralized by the equipment purchased with
such leases.
(4) See Table 14 - Population.
In May, 2013, as described in Note 9 E, Queen Anne’s County adopted Resolution No. 13-04, thereby continuing
a local debt policy in compliance with Article 95, Section 22F of the Annotated Code of Maryland.
This policy requires that the County’s Director of Budget, Finance and Information Technology take the following steps:
(a) prepare a six-year capital project plan each year;
(b) propose an amount to be transferred from the General Fund operating balance to the General Capital Projects
Fund to serve as pay-as-you-go funding in the latter Fund, in order to lessen the need for future County debt;
(c) limit the County’s non-bonded indebtedness to $8.0 million for general operating expenses or capital
improvements;
(d) certify that the sum of outstanding general bonded debt and any new general obligation debt is 2.5% or less
of the total taxable assessed base and is $3,000 or less per capita; and
This policy also stipulates that although there is some flexibility as to the acceptable percentage of debt service to general fund
expenditures, and no absolute limit has been established by the rating agencies or the Government Finance Officers Association,
anything above 12% of total general fund expenditures would be a cause to carefully monitor debt service.
-202-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LOCAL DEBT LIMIT
LAST TEN FISCAL YEARS
Table 12-b
(CONTINUED)
2016 2017 2018 2019 2020
$ 7,626,510,532 $ 7,792,264,218 $ 7 ,974,395,138 $ 8 ,264,514,461 $ 8 ,486,858,638
2.5% 2.5% 2.5% 2.5% 2.5%
$ 190,662,763 $ 194,806,605 $ 1 99,359,878 $ 2 06,612,862 $ 2 12,171,466
$ 3,520,859 $ 3,217,479 $ 2 ,976,195 $ 2 ,725,011 $ 2 ,475,881
120,891,108 125,217,582 1 33,984,765 1 37,083,402 1 37,289,000
$ 124,411,967 $ 128,435,061 $ 1 36,960,960 $ 1 39,808,413 $ 1 39,764,881
$ 66,250,796 $ 66,371,544 $ 6 2,398,918 $ 6 6,804,449 $ 7 2,406,585
48,517 48,904 48,904 50,750 52,597
$ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000
$ 145,551,000 $ 146,712,000 $ 1 46,712,000 $ 1 52,250,000 $ 1 57,791,000
$ 124,411,967 $ 128,435,061 $ 1 36,960,960 $ 1 39,808,413 $ 1 39,764,881
$ 21,139,033 $ 18,276,939 $ 9 ,751,040 $ 1 2,441,587 $ 1 8,026,119
-203-

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, 2020
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 909 1 7.93%
Queen Anne's County Government 517 2 4.51%
Chesapeake College 445 3 3.88%
REEB Millwork 300 4 2.62%
Paul Reed Smith Guitars 255 5 2.22%
Federal Resources Supply 245 6 2.14%
S.E.W. Friel 200 7 1.74%
AZZ Enclosures 135 8 1.18%
Genesis Healthcare 135 9 1.18%
Clinton Nurseries of Md. 130 10 1.13%
Total 3,271 28.53%
For the Fiscal Year Ended June 30, 2011
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 941 1 8.92%
Queen Anne's County Government 442 2 4.19%
S.E.W. Friel 275 3 2.61%
Paul Reed Smith Guitars 233 4 2.21%
Chesapeake College 225 5 2.13%
Safeway 180 6 1.71%
River Plantation 175 7 1.66%
Genesis Healthcare 150 8 1.42%
Harris Seafood Company 150 9 1.42%
Acme Markets 149 10 1.41%
Total 2,920 27.68%
Source: Queen Anne's County Economic Development Office; Table 15.
-204-

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)
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
2015 48,804 1,854,356,784 3 7,996 4.90% 7 ,752
2016 48,517 1,862,664,664 3 8,392 3.90% 7 ,738
2017 48,904 1,894,198,632 3 8,733 3.80% 7 ,799
2018 48,904 1,936,256,072 3 9,593 3.90% 7 ,768
2019 50,750 2,058,064,750 4 0,553 3.70% 7 ,767
2020 52,597 2,353,926,138 4 4,754 7.00% 7 ,705
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.
-205-

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME EQUIVALENTS
LAST TEN FISCAL YEARS
Table 15
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Number of Exempt Employees 26 26 28 29 30 32 35 34 32 33
Number of Full Time Employees 400 386 391 393 416 431 439 450 479 484
Number of Part Time Employees (FTE) 10 9 8 7 3 3 4 3 3 2
Total County Government Employees 436 421 427 429 449 466 478 487 514 519
NOTES:
Source: Queen Anne's County Office of Budget, Finance and Information Technology.
-206-

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME ONLY BY FUNCTION
LAST TEN FISCAL YEARS
Table 16
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Governmental Activities:
General Government 77 74 82 77 81 83 87 76 75 78
Public Safety:
Police 49 53 56 58 58 59 61 62 69 71
Fire - Emergency Management Services 64 61 64 67 71 72 73 75 82 83
Detention Center 41 42 41 41 41 41 45 41 42 43
Animal Services 10 10 6 3 3 2 2 2 2 2
Public Works 61 51 51 54 58 61 59 75 80 77
Health 1 1 1 1 1 1 1 1 1 1
Social Services 32 36 32 36 38 42 41 39 39 39
Parks 31 27 27 29 39 42 44 43 46 52
Conservation of Natural Resources 3 3 4 4 3 4 4 4 4 4
Economic/Community Development 7 3 6 2 3 6 5 10 11 9
Total Governmental Activities 376 361 370 372 396 413 422 428 451 459
Business-Type Activities:
Sanitary District 44 45 45 46 46 46 48 51 55 53
Bay Bridge Airport 3 3 1 1 1 1 1 2 2 2
Golf - - 1 1 1 1 1 1 1 1
Public Landings 3 3 2 2 2 2 2 2 2 2
Total Business-Type Activities 50 51 49 50 50 50 52 56 60 58
Total Full-Time County Employees 426 412 419 422 446 463 474 484 511 517
NOTES:
- Only full-time County employees are represented in this table.
- Employees of the County's component units have been excluded from this table.
Source: Queen Anne's County Office of Budget, Finance and Information Technology.
-207-

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Table 17
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Governmental Activities:
General Government:
Planning & Zoning:
Number of commercial permits issued 27 99 75 51 52 50 47 55 30 49
Number of residential permits issued:
Single Family Permits 106 119 161 133 123 84 124 145 155 173
Multi Family Permits 4 20 21 12 - 1 29 - 37 41
Renovations and Additions Permits 295 207 312 327 270 303 323 339 359 317
Total residential permits issued 405 346 494 472 393 388 476 484 551 531
Public Safety:
Fire and Rescue:
Number of volunteer members 689 689 689 689 683 500 400 500 450 542
Police:
Uniformed Police Officers 55 59 61 61 64 64 64 68 69 71
Number of law violations:
Physical arrests 1,216 848 1,144 1,239 1,055 903 914 1,097 930 854
Traffic violations 5,760 5,818 5,915 6,514 6,030 8,002 7,183 12,384 10,474 9,705
Detention Center:
Detention Center Officers 40 38 40 41 41 39 38 42 41 41
Average yearly prison population 103 86 128 138 123 115 133 115 105 106
Public Works:
Wastewater Treated - Daily (mgd) 1.7 1.9 2.0 2.0 2.1 2.0 2.0 2.2 2.2 2.1
Education:
Number of Personnel
Teachers 530 537 546 550 575 575 572 569 572 584
Administrators 37 39 39 41 40 40 38 37 37 37
Support 310 300 294 344 295 296 304 300 301 281
Other 64 47 47 37 34 34 34 34 32 7
Number of Students 7,722 7,757 7,717 7,720 7,752 7,738 7,799 7,768 7,767 7,705
Number of High School Graduates 566 598 537 605 589 532 550 552 521 590
NOTES:
Source: Various County departments.
-208-

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Table 18
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Governmental Activities:
Public Safety:
Fire and Rescue:
Number of volunteer stations 10 10 9 9 9 9 9 9 9 9
Equipment:
Engines 17 17 18 17 16 16 16 16 15 15
Tankers 9 9 9 8 8 8 8 8 7 9
Aerial Units 5 5 5 4 4 5 5 4 5 5
Rescue Units 7 7 8 6 7 6 6 5 5 7
Brush Units 8 8 8 7 7 7 7 7 7 8
Boats 5 5 5 6 6 6 6 3 4 4
Ambulance/Medic Units 17 17 17 13 14 12 13 13 11 13
Cars/Other 22 22 22 25 25 25 16 14 28 33
Police:
Number of Stations 1 1 1 1 1 1 1 1 1 1
Number of Vehicles
Patrol 53 62 62 68 68 71 70 70 71 81
Other 21 3 3 12 15 10 9 14 14 12
Detention Center
Capacity 148 148 148 148 148 148 148 148 148 148
Public Works:
County Maintained Roads and Streets
Paved (miles) 540 540 541 543 543 540 549 549 549 550
Unpaved (miles) 12 12 12 12 12 12 12 12 12 12
County Owned Water and
Wastewater Facilities
Water
Miles of Mains 59 59 61 62 62 64 65 67 68 69
Water Treatment Plants 11 11 11 11 11 11 11 11 11 11
Booster Stations 2 2 2 2 2 2 2 2 2 2
Wastewater
Miles of Mains 118 118 120 121 122 128 136 151 153 154
Wastewater Treatment Plants 1 1 1 1 1 1 1 1 1 1
Wastewater Collection, Lift,
and Pumping Stations 31 31 31 31 31 31 32 32 32 32
Education:
Number of Schools
High Schools 2 2 2 2 2 2 2 2 2 2
Middle Schools 4 4 4 4 4 4 4 4 4 4
Elementary Schools 8 8 8 8 8 8 8 8 8 8
Parks and Recreation:
Parks 33 33 33 33 33 32 32 32 32 32
Park Acreage 2,915 2,915 2,915 2,915 2,915 2,915 2,915 3,085 3,085 3,085
Public Landings 21 21 19 20 20 19 20 20 20 20
Library:
Number of Libraries 3 3 3 3 3 3 3 3 3 3
NOTES:
Source: Various County departments.
-209-