Fiscal Year 2025 ACFR (PDF)

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

THE COUNTY COMMISSIONERS OF
QUEEN ANNE’S COUNTY, MARYLAND
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025

QUEEN ANNE'S COUNTY, MARYLAND
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION 4
Letter of Transmittal 5 - 9
Certificate of Achievement for Excellence in Financial Reporting 10
Organization Chart 11
Certain Elected and Other Officials 12
FINANCIAL SECTION 13
Independent Auditor's Report 14 - 17
Management's Discussion and Analysis (required supplementary information) 18 - 32
BASIC FINANCIAL STATEMENTS 33
Government-Wide Financial Statements
Statement of Net Position 34 - 35
Statement of Activities 36 - 37
Governmental Fund Financial Statements
Balance Sheet 38
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 39
Statement of Revenues, Expenditures and Changes in Fund Balances 40
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 41
Enterprise Fund Financial Statements
Statement of Net Position 42 - 43
Statement of Revenues, Expenses, and Changes in Net Position 44 - 45
Statement of Cash Flows 46 - 47
Fiduciary Fund Statements
Statement of Fiduciary Net Position 48
Statement of Changes in Fiduciary Net Position 49
Notes to Financial Statements 50 - 123
REQUIRED SUPPLEMENTARY INFORMATION 124
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual General Fund 125 - 127
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual Grants Fund 128 - 129
Maryland State Retirement and Pensions Systems
Schedule of the Proportionate Share of the Net Pension Liability
and Schedule of Contributions 130
Actuarial Assumptions - Pension Plan 131
Other Post-Employment Benefits (OPEB) Trust
Schedule of Changes in the Net OPEB Liability and Schedule of Actual
Employer Contribution as a Percentage of Covered-Employee Payroll 132 - 133
Actuarial Assumptions - OPEB Plan 134
Length of Service Awards Program (LOSAP)
Schedule of Changes in the Net LOSAP Liability 135
Notes to the Required Supplemental Information (LOSAP) 136
2

QUEEN ANNE'S COUNTY, MARYLAND
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
(CONTINUED)
Page(s)
FINANCIAL SECTION (CONTINUED)
OTHER SUPPLEMENTARY INFORMATION 137
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 138
Non-Major Governmental Funds 139 - 141
Combining Balance Sheet 142 - 145
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 146 - 149
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budgetary Basis 150 - 157
Non-Major Enterprise Funds 158 - 159
Combining Statement of Net Position 160
Combining Statement of Revenues, Expenses, and Changes in Net Position 161
Combining Statement of Cash Flows 162 - 163
Fiduciary Funds 164
Custodial Funds 165
Statement of Fiduciary Net Position 166
Statement of Changes in Fiduciary Net Position 167
Community Partnerships for Children 168
Community Partnerships for Children Special Revenue Fund
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 - 173
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budgetary Basis 174 - 175
STATISTICAL SECTION (UNAUDITED) 176 - 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 188 - 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 198 - 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
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I S
NTRODUCTORY ECTION
4

Queen O F F I C E O F B U D G E T A N D FINANCE
The Liberty Building
Anne’s
107 North Liberty Street
Centreville, Maryland 21617
County
Telephone: (410) 758-4064
Fax: (410) 758-3036
C ounty Commissioners:
James J. Moran, At Large
County Administrator: Todd R. Mohn
Jack N. Wilson, Jr., District 1
J . Patrick McLaughlin, District 2
Director, Budget & Finance: Jeffrey A. Rank
P hilip L. Dumenil, District 3
Christopher M. Corchiarino, District 4
December 23, 2025
The Board of County Commissioners and
The Citizens of Queen Anne’s County, Maryland
FORMAL TRANSMITTAL OF THE ANNUAL COMPREHNSIVE FINANCIAL REPORT (ACFR)
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 annual comprehensive financial report of Queen Anne’s County, Maryland for the fiscal year
ended June 30, 2025.
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 UHY LLP, 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, 2025, 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, 2025, 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
52,688 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 and
Finance. 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 and Finance 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 the General Capital Projects Fund and the Roads Capital Projects Fund reflect multi-year
appropriations at the individual project level.
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Departments may request budget modifications; however, approval authority is assigned based on the dollar amount of the
adjustment. The Director of Budget and Finance may approve modifications of $10,000 or less, the County Administrator may
approve those up to $100,000, and the County Commissioners must approve any modification exceeding $100,000. 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 2025 rate for the County was 2.9%, compared to the state’s rate of 3.7% and the U.S.’s rate of 4.1%. The fiscal year
2025 average rate for the County was 2.6%. The increase in the unemployment rate for fiscal year 2025 was the result of a
combination of labor force growth and demographic shifts.
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.
7

Property and income tax revenue increased when comparing current year to prior year for governmental funds. Property taxes
increased in fiscal year 2025 by 6.6% to $87.6 million due to an increase in assessable base. Local income tax is the County’s
other main revenue source. Income tax collections increased by 7.8% in fiscal year 2025, from $86.0 million in fiscal year 2024
to $92.7 million in fiscal year 2025 as a result of increased employment, capital gains and wages.
Recordation tax increased in fiscal year 2025 with an increase of 26.2% over fiscal year 2024, from $7.7 million in fiscal year
2024 to $9.7 million in fiscal year 2025. The transfer tax revenue also increased in fiscal year 2025 by 18.3%, from $2.9 million
in fiscal year 2024 to $3.4 million in fiscal year 2025.
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 to the required minimum amount of $16,551,869 in
fiscal year 2025.
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 $894,607 in fiscal year 2025. The current balance of the Revenue Stabilization Fund is $10,344,918.
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 2026, prioritizes capital
expenditures over these years to meet the County’s needs. The six-year program totals $466.3 million and includes: $257.0
million for various General Capital Projects (includes $114.5 million for the Mid-shore Regional Detention Center, $17.0 million
for the Recreation Center, and $16.0 million for Sheriff facilities, $8.3 million for Parks playground equipment, $8.0 million for
renovations to the Historic Courthouse, and $6.4 million for trail development, maintenance, and amenities); $47.2 million for
various Sanitary District projects (includes the Marling Farms/Dominion Sewer extension for $22.9 million and the Southern
Kent Island Sewer service at $13.3 million); $93.6 million for various school related projects (includes $28.2 million for the
Career & Technology Education Facility and $20.5 million for the Centreville Middle School); $55.7 million for Roads Board
capital projects (includes $22.9 million for pedestrian bridge crossing US 50/301 and $16.2 million for asphalt overlays); $9.5
million for various airport related projects (includes $4.3 million for the construction of the North Apron expansion and $4.1
million for construction of the South Apron safety enhancement); and $2.5 million for Public Housing Authority facilities.
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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 Aaa, and Standard & Poor’s also issued a
AAA rating.
Debt Management Policy – In calendar year 2013, the County adopted Resolution 13-04, which revised the County’s Local Debt
Policy. In accordance with this policy, the Director of Budget and Finance, is responsible for following certain procedures to
ensure that debt limits established by the Policy are not exceeded. A key element of the Policy is that prior to the issuance of any
new bonded indebtedness, the Director must certify that existing and new General Obligation Debt will not exceed (1) 2.5% of
the total taxable assessable base and (2) $3,000 per capita. This policy also stipulates that although there is some flexibility as to
the acceptable percentage of debt service to general fund expenditures, and no absolute limit has been established by the rating
agencies or the Government Finance Officers Association, anything above 12% of total general fund expenditures would be a
cause to carefully monitor debt service. 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 2025, Queen Anne’s County general obligation debt was 1.09% of the total taxable assessable base, and the per
capita debt measurement was $2,173. The debt service was 6.9% 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 annual comprehensive financial report (ACFR)
for the fiscal year ended June 30, 2024. 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 annual comprehensive 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-six consecutive years (fiscal years 1999-2024). We believe our current annual comprehensive
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 annual comprehensive 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: Justine Franzen, who is the principal staff member responsible
for preparing the report, Nichole Hepfer, Hayley Effland, Lisa Taylor, 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,
Jeffrey Rank
Director of Budget and Finance
9

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Queen Anne's County
Maryland
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
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Queen Anne’s County Government Organizational Chart
Queen Anne’s County Voters
County
State’s Attorney Sheriff’s Office Orphan’s Court Circuit Court
Commissioners
Boards & County County Attorney
Commissions Administrator
County Administration Public Works Parks & Recreation Planning & Zoning Community Services Public Safety
Budget & Finance Detention Center
Engineering Parks Liquor Board Aging
Recreation
General Services Planning Housing & Emergency Services
Human Resources Community • EMS
Enterprise Funds
Services • Communications
Property • Marinas & Zoning / Permits • Fire Marshal
Management Landings • Support Services
Economic • Bay Bridge Local • Special
Airport Management Operations
Development & Roads • Blue Heron Board - Animal
Tourism Golf Course Control
- Emergency
Sanitary District Management
Information
Technology & Solid Waste Department under State law
Communications partially or fully funded by
• Information County Appropriations
Technology (IT) Animal Services
• GIS – Geographic
Departments and
Information agencies shown to the Board of Education Chesapeake
• QACTV College
right are not under the
• Public Information
control or supervision of
QAC Free Library Board of Elections
Queen Anne’s County
Government but are
Housing Authority
partially or fully funded by Health Department
County appropriation
under State law. University of MD
Soil Conservation
Extension
Service
11

QUEEN ANNE’S COUNTY, MARYLAND
GOVERNMENTAL ORGANIZATION
CERTAIN ELECTED AND OTHER OFFICIALS
AS OF JUNE 30, 2025
CERTAIN ELECTED OFFICIALS
County Commissioners James J. Moran, At Large
Jack N. Wilson, Jr., District 1
J. Patrick McLaughlin, 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 Planning and Zoning Amy Moredock
Director of Community Services Catherine R. Willis
Director of Budget and Finance Jeffrey Rank
Director of IT Brian Riley
Chief Treasury Officer Nancy Boone
County Attorney Patrick E. Thompson, Esq.
Independent Auditor Bond Counsel Financial Advisor
UHY LLP McKennon, Shelton Davenport & Company LLC
Certified Public Accountants & Henn, LLP Towson, Maryland
Salisbury, Maryland Baltimore, Maryland
12

F S
INANCIAL ECTION
13

INDEPENDENT AUDITORS’ REPORT
County Commissioners of
Queen Anne’s County
Centreville, Maryland
Report on the Audit of the Financial Statements
Opinions
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, 2025, and the related notes to the financial statements, which collectively comprise the
County’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of
the County, as of June 30, 2025, 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.
We did not audit the financial statements of the Queen Anne’s County Free Library (the “Library”) and
the Queen Anne’s County Housing Authority (the “Housing Authority”) as of June 30, 2025, and the
respective changes in financial position, and where applicable, cash flows thereof for the year then
ended. Those statements were audited by other auditors whose reports has been furnished to us, and
our opinions, insofar as it relates to the amounts included for the Library and the Housing Authority, are
based solely on the reports of the other auditors.
Basis for Opinions
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. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the County, and to meet our other ethical responsibilities,
in accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As discussed in Note 1 to the financial statements, during the year ended June 30, 2025, the County
adopted new accounting guidance from the Governmental Accounting Standards Board (GASB)
Statement No. 101, “Compensated Absences,” and Statement No. 102, “Certain Risk Disclosures.” Our
opinion is not modified with respect to these matters.
An independent member of UHY International
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Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the County’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the County’s internal control. Accordingly, no such opinion
is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the County’s ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
15

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 (RSI), as listed in the table of contents,
be presented to supplement the basic financial statements. Such information is the responsibility of
management and, 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 have
applied certain limited procedures to the RSI in accordance with auditing standards generally accepted
in the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s responses
to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide
any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the County’s basic financial statements. The other supplementary information (OSI), as listed
in the table of contents, is presented for purposes of additional analysis and is not a required part of the
basic financial statements. Such 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. The 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 OSI, as listed in the table of contents, is fairly stated, in all material respects in relation to the basic
financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements
and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
16

Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 23,
2025, 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 solely 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
December 23, 2025
17

Management’s Discussion and Analysis
Introduction
This section of the Annual Comprehensive 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, 2025. 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.
18

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; 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, roads operating fund, community
partnerships for children, law library, inmate welfare, agricultural transfer, rural legacy, dredging special
assessments, Kent Narrows, and Community Reinvestment and Repair Commission. 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 six custodial funds. The accounting used for fiduciary funds is
much like that used for proprietary funds except that the custodial 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.
19

Government-wide Financial Analysis
Statement of Net Position
A summary of government-wide assets, liabilities, and net position is as follows:
The County’s total current and other assets decreased by $3.1 million, or 1.0 percent, to $290.6 million. The
County’s total assets and deferred outflows of resources exceeded its total liabilities and deferred inflows of
resources at the close of fiscal year 2025 by $354.1 million.
Net position is divided into three categories: net investment in capital assets; restricted amounts; and
unrestricted amounts. By far the largest portion, $234.4 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 $39.4 million on June 30, 2025. Absent the effect of this relationship, the
County would have reported a positive unrestricted amount of $124.9 million on its government-wide financial
statements, rather than the positive unrestricted net assets of $85.5 million reported herein. For a multi-year
view of this calculation, see the Footnote presented in Table 1 of the Statistical Section.
An additional $34.2 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: $16.9 million related
to general government services; $3.1 million for economic/community development; $7.3 million for public
safety; $2.5 million for conservation of natural resources; and $728 thousand for social services. For business-
type activities, this amount includes $2.5 million restricted to meet Sanitary District debt covenants and $1.2
million for the Bay Bridge Airport debt service.
20

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
2025 2024 2025 2024 2025 2024
Program revenues:
Charges for services $ 9,459,399 $ 8,791,716 $ 13,854,434 $ 15,353,749 $ 23,313,833 $ 24,145,465
Operating grants and contributions 8,390,974 8,049,065 2,145,609 2,580,846 10,536,583 10,629,911
Capital grants and contributions 4,690,358 9,533,202 4 77,452 7,635,932 5,167,810 17,169,134
General revenues:
Property taxes 87,632,233 82,047,674 - - 87,632,233 82,047,674
Local income tax 97,132,220 86,567,013 - - 97,132,220 86,567,013
Other local taxes
Admission and amusement taxes 2 72,787 2 61,842 - - 2 72,787 2 61,842
Recordation taxes 9,678,920 7,668,565 - - 9,678,920 7,668,565
Hotel taxes 1,213,347 1,127,036 - - 1,213,347 1,127,036
County transfer taxes 3,414,046 2,885,299 - - 3,414,046 2,885,299
State Shared Taxes 1,865,957 1,560,187 - - 1,865,957 1,560,187
Investment income 7,932,266 9,192,673 1,817,477 1,732,675 9,749,743 10,925,348
Gain (loss) on sale of capital assets - - - (21,552) - (21,552)
Miscellaneous 1,596,056 2,142,333 1,323,863 1,167,917 2,919,919 3,310,250
Total Revenues 233,278,563 219,826,605 19,618,835 28,449,567 252,897,398 248,276,172
Governmental Activities:
General government 26,179,090 22,378,707 - - 26,179,090 22,378,707
Public safety 54,655,168 49,458,541 - - 54,655,168 49,458,541
Public works 17,436,351 20,222,362 - - 17,436,351 20,222,362
Parks & recreation 7,032,764 7,458,494 - - 7,032,764 7,458,494
Health & Social Services 8,458,369 7,944,933 - - 8,458,369 7,944,933
Education & Library 101,119,281 83,355,583 - - 101,119,281 83,355,583
Conservation of natural resources 3,463,854 3,702,670 - - 3,463,854 3,702,670
Economic and Community development 4,107,120 2,826,682 - - 4,107,120 2,826,682
Interest and fiscal charges 2,695,256 4,254,673 - - 2,695,256 4,254,673
Business-type Activities:
Water and sewer - - 19,846,575 14,932,981 19,846,575 14,932,981
Airport - - 1,459,540 9 66,183 1,459,540 9 66,183
Golf course - - 7 44,055 7 30,908 7 44,055 7 30,908
Public landings and marinas - - 8 58,122 6 66,295 8 58,122 6 66,295
Total Expenses 225,147,253 201,602,645 22,908,292 17,296,367 248,055,545 218,899,012
Increase in Net Position before Transfers 8,131,310 18,223,960 (3,289,457) 11,153,200 4,841,853 29,377,160
Transfers in (out) (118,936) (484,251) 1 18,936 4 84,251 - -
Increase in Net Position 8,012,374 17,739,709 (3,170,521) 11,637,451 4,841,853 29,377,160
Net Position, prior year 202,823,232 185,083,523 146,413,879 134,776,428 349,237,111 319,859,951
Net Position - current year $ 210,835,606 $ 202,823,232 $ 143,243,358 $ 146,413,879 $ 354,078,964 $ 349,237,111
21

Governmental activities:
Revenues for governmental activities were $233.3 million for fiscal year 2025. The following chart depicts
revenues by source for governmental activities:
 Taxes comprise the largest source of County revenue, totaling $201.2 million (86.3 percent) of total
revenue for fiscal year 2025. Of that amount, property and local income tax together yielded $184.8
million (79.2 percent) of all revenue. Each County sets its own property and income tax rates, within
parameters established by the State. For fiscal year 2025, the County’s property tax rate remained at
$.830 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.
 Operating grants and contributions, totaling $8.4 million, reflect grants from Federal and State
agencies that support specific County programs. Programs that benefitted the most were: health and
social services ($3.1 million or $37.3 percent), public safety ($2.3 million or 27.9 percent), general
government ($1.6 million or 18.9 percent), and economic/community development ($1.3 million or
15.6 percent).
 Charges for services, totaling $9.5 million, reflect fees charged to County citizens. These primarily
support public safety ($3.0 million or 32.2 percent), education and library ($2.1 million or 21.9
percent), general government ($1.9 million or 20.6 percent), parks and recreation ($1.2 million or 12.6
percent), and public works ($1.1 million or 11.8 percent).
 Capital grants and contributions, totaling $4.7 million, reflect contributions from Federal and State
agencies, as well as developers. Programs that benefitted the most were: general government ($1.9
million or 41.4 percent) and conservation of natural resources ($1.5 million or 31.2 percent).
22

Expenses for all governmental activities were $225.1 million for fiscal year 2025. The following chart depicts
expenses by function for governmental activities:
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 $101.1 million (44.9 percent). The following table summarizes costs and
program-related revenues for the same programs in order of priority, yielding net service costs:
Of the total cost of $225.1 million for governmental activities, $22.5 million (10.1 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 $9.5 million,
while governments and other organizations that benefited indirectly from these programs contributed operating
grants of $8.4 million and capital grants of $4.7 million.
County taxpayers paid for most of the remaining $202.6 million in net program costs, through a variety of
County taxes. Net program costs of services provided to the public, in order of net cost, were: $99.0 million
for education and library; $49.1 million for public safety; $20.7 million for general government; $16.0 million
for public works; $5.5 million for parks and recreation; $4.9 million for health and social services; $2.8 million
for economic and community development; and $2.6 million for interest and fiscal charges, and $2.0 million
23

for conservation of natural resources. 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 2025, governmental activities increased the County’s net position overall by
$8.0 million, compared to an increase of $17.7 million in fiscal year 2024. The following discussion explains
changes in net position relative to the prior fiscal year.
Revenues for governmental activities increased by $13.5 million (6.1 percent). The following key revenues
changed, when compared to the prior fiscal year:
 Income taxes increased by $10.6 million (12.2 percent), from $86.6 million in fiscal year 2024 to
$97.1 million in fiscal year 2025. This increase was the result of increased receipts from the State for
the County's share of collection, due chiefly to capital investment gains and wage increases.
 Property taxes increased by $5.6 million (6.8 percent), from $82.0 million in fiscal year 2024 to $87.6
million in fiscal year 2025 due to an increase in property assessments.
 Recordation taxes increased by $2.0 million (26.2 percent), from $7.7 million in fiscal year 2024 to
$9.7 million in fiscal year 2025 due a strong real estate market, rising property assessments, and
increased property sales activity.
 Capital grants and contributions decreased by $4.8 million (50.8 percent), from $9.5 million in fiscal
year 2024 to $4.7 million in fiscal year 2025. This is mainly due to the use of Federal ARPA funding
in fiscal year 2024.
 Investment Income decreased by $1.3 million (13.7 percent), from $9.2 million in fiscal year 2024 to
$7.9 million in fiscal year 2025 due to a decrease in the Federal rate (which is the basis of our earned
interest rate) in the third quarter of calendar year 2024 through the second quarter of calendar year
2025.
Expenses for governmental activities increased by $23.5 million (11.7 percent). Key positive and negative
expense changes, in order of relative importance, are:
 Education & Library increased by $17.8 million (21.3 percent). There was an increase of $11.6
million for various school capital projects, such as the Board of Education new administration
building. In addition, the County’s allocation to the Board of Education increased by $6.2 million in
fiscal year 2025.
 Public Safety increased by $5.2 million (10.5 percent). There was an increase of $5.8 million in
expenditures related to the pension liability. The Sheriff’s Office also increased by $1.2 million, as
well as an increase of $1.1 million in Emergency Services. There was a $3.4 million decrease for the
LOSAP liability due to changes in benefit terms.
 General Government increased by $3.8 million (17.0 percent). $2.1 million of the increase occurred
throughout the General Fund in multiple departments. An additional $1.0 million increase occurred in
Dredging Special Assessments as a result of a dredging project that began in fiscal year 2025.
 Economic and Community Services increased by $1.3 million (45.3 percent), mainly due to an
increase of $818 thousand in the allocation to the Housing Authority.
 Public Works decreased by $2.8 million (13.8 percent). Of the decrease, expenditures related to
Public Works capital projects decreased by $1.6 million, mainly as a result of the timing of projects.
There was also a decrease of $1.1 million in expenditures related to the pension liability.
24

Business-type activities:
Revenues, transfers in, and expenses for business-type activities were $19.6 million, $119 thousand, and $22.9
million, respectively, for fiscal year 2025. The following two charts depict revenues by source and expenses by
service for business-type activities:
Business-type activities decreased the County’s net position altogether to $3.2 million in fiscal year 2025,
which is $14.8 million less than the prior year’s increase of $11.6 million. The fiscal year 2025 change in net
position resulted primarily from:
25

 Capital Grants and Contributions decreased by $7.2 million (93.7 percent), from $7.6 million in fiscal
year 2024 to $477 thousand in fiscal year 2025, for all business-type activities. The decrease is due to
capital grant funding for the Airport’s runway construction in fiscal 2024 for $5.0 million which was
not received in the current year due to timing of the project. In addition, Sanitary received $2.1 million
more in developer contributed capital in fiscal 2024 compared to 2025.
 Operating Expenses increased by $5.6 million (32.4 percent), from $17.3 million in fiscal year 2024 to
$22.9 million in fiscal year 2025, for all business-type activities. The increase resulted from Sanitary
water and sewer activities increasing by $4.9 million (32.9 percent), mainly for residential water meter
replacement expense and Chester West water main project, Airport increasing by $493 thousand (51.1
percent) mainly due to hanger repairs, and Public Landings and Marinas increasing by $192 thousand
(28.8 percent) mainly due to Price Creek dredging expense.
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 $165.7 million, compared to $172.1 million for the prior year.
Approximately 31.8 percent of this total ($52.8 million) constitutes unassigned fund balance, which is
available for spending. The total unassigned fund balance of $52.8 million is comprised of $53.8 million of
positive unassigned fund balance for the general fund and a negative $1.0 million of unassigned fund balance
for Dredging Special Assessments, resulting from expenses occurring prior to the issuance of loan proceeds
intended to fund a dredging project. The loan proceeds are expected in fiscal year 2026.
The nonspendable fund balance of $2.3 million which is not available for spending and includes amounts
related to inventory, prepaid items and the excess of lease receivable balance over deferred inflow balance.
Restricted fund balance of $33.4 million (20.1 percent) includes amounts that can be spent only for specific
purposes stipulated by external sources or legal restrictions.
Committed fund balance of $42.3 million (25.5 percent) represents those amounts that can be used only for the
specific purposes of the government’s highest level of decision-making authority.
The remaining $35.1 million of fund balance (21.2 percent) constitutes assigned fund balances. These
amounts are intended to be used by the government for the specific purposes of each fund.
More detailed information on each classification of governmental fund balance can be found in Note 12 of this
report.
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 $88.8 million, which is an increase of $11.3 million
(14.6 percent) from the fiscal year 2024 balance of $77.5 million. Of the $11.3 million increase, local property
tax increased by $5.4 million (6.6 percent) as a result due to an increase in assessments for tax district 3 by an
average of 15%. Local income tax also increased $6.7 million (7.8 percent) due to increases in wage rates and
capital gains.
26

Of the total $88.8 million in fund balance, $53.8 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,
$16.6 million of rainy day funds are included in the General Fund’s restricted fund balance of $23.6 million for
fiscal year 2025. The remaining fund balance is comprised of $1.0 million in nonspendable, and $10.3 million
in committed.
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, 2025, the General Capital Projects Fund has a total fund balance of $34.2 million, compared to
$56.1 million at the end of the prior fiscal year. The $34.2 million in total fund balance is comprised of $3.1
million in restricted fund balance, mainly for unspent bond proceeds, $6.3 million of fund balance committed
for specific projects, and $24.8 million of assigned fund balance. The decrease in General Capital Projects
fund balance resulted from expenditures incurred prior to the issuance of related general obligation bonds in
fiscal year 2026. The fund balance will increase upon receipt of bond proceeds.
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, 2025, the Roads Capital Projects Fund has a total fund balance of $10.3 million, compared to
$6.5 million at the end of the prior fiscal year. Of this total $10.3 million fund balance, $9.4 million has been
assigned to fund ongoing projects, while $926 thousand has been contributed by local developers and is
committed to fund specific infrastructure improvements.
The Grants Fund accounts for activities funded by grants and is included in various governmental functions,
depending on the grant.
As of June 30, 2025, the Grants Fund has a total fund balance $0 due to the constraints of grant funding, all
grant revenue must be expensed withing the fiscal year.
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 2025
amounted to $34.4 million, which is an increase of $3.7 million compared to the prior year. Net investment in
capital assets decreased by $5.6 million.
Total net position of the Sanitary District amounted to $115.1 million at the end of fiscal year 2025, which
decreased by $2.4 million when compared to the prior year.
The unrestricted net position of the Bay Bridge Airport Enterprise Fund at year end amounted to a deficit
balance of $1.2 million, reflecting a decrease of $633 thousand compared to the prior year. The investment in
capital assets for the Bay Bridge Airport increased by $13 thousand in the current fiscal year.
Total net position of the Bay Bridge Airport amounted to $20.2 million at the end of fiscal year 2025, which is
a decrease of $655 thousand from the prior year amount of $20.8 million.
27

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 $206.1 million. Amendments increased spending authority by $14.9 million during fiscal year
2025, when compared to the original budget of $191.2 million.
Major components of these expenditure budget increases are as follows:
 Budgeted General Government increased by $1.5 million, mainly due to increases of $878 thousand in
Legal Services.
 Budgeted Public Safety increased by $1.8 million, mainly due to miscellaneous increases in the
Sheriff’s Office and Emergency Services.
 Budgeted Transfers Out to General Capital Projects increased by $7.1 million from the original budget
during the year. These funds will be used in subsequent years as funding for the larger capital projects.
 Budgeted Transfers Out to Roads Capital Projects increased by $3.5 million from the original budget.
Similarly to General Capital Projects, these additional funds will be used for Roads Capital projects in
subsequent years.
 Budgeted Transfers Out to the Agricultural Transfer Tax Fund increased by $660 thousand from the
original budget, resulting from additional easements available and purchased during the fiscal year.
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 $10.2 million.
Actual expenditures, and other financing uses, were less than final budgetary appropriations by $3.0 million.
The net effect of these two disparities was a positive variance of actual to final budget of $13.2 million.
The most noteworthy differences between final budgeted amounts and actual amounts are summarized as
follows:
Revenues:
 Investment Income was $2.8 million higher than the final budget (74.3 percent) due to the continued
higher interest rates, as well as strong cash balances.
 Local Property Tax revenue was $2.4 million more than the final budget (2.8 percent) due to a higher
than anticipated increase in assessments.
 Recordation Tax revenue was $1.8 million higher than the final budget (23.5 percent) due to strong
housing market during the fiscal year.
28

 Charges for Services revenue was $1.2 million higher than the final budget (34.8 percent) due to
increase Public Safety user fees.
 Transfer Tax revenue was $1.1 million higher than the final budget (48.4 percent) due to the positive
trends in the housing market over the last year.
Expenditures:
 Final Budgeted Salaries and Benefits were $56.7 million for the year, while actual costs were $58.6
million. They were overspent at year-end by $1.9 million (3.3 percent). Budgeted salaries and
benefits include reversions of $2.3 million.
 Final Budgeted Other Operating Charges were $149.4 million for the year, while actual costs were
$144.5 million. These costs were lower than budget at year end by $4.9 million (3.3 percent).
Operating Charges include contracted services, supplies, other charges, debt service, and transfers out.
o Other Operating Expenses were underspent by $2.3 million. Savings were realized in the
Health Department ($737 thousand), General Services ($242 Thousand), Emergency Services
($173 thousand), and OPEB ($158 thousand), The remaining savings for Other Operating
Expenses were spread throughout the General Fund.
o Transfers Out was underspent by $1.3 million, due to savings realized by Roads Operating
($944 thousand) and the Golf Course Enterprise Fund ($160 thousand) which allowed these
departments to forgo this portion of their appropriation.
o Contracted Services were underspent by $1.2 million, with the largest savings realized by
Detention Center ($397 thousand), Information Technology ($347 thousand), Solid Waste
($132 thousand), and Emergency Services ($104 thousand)
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, 2025 amounted to $346.1 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. The
total decrease in the County’s investment in capital assets for the current fiscal year was $1.5 million or 0.4%.
Capital asset activities, net of depreciation, are summarized as follows:
29

Noteworthy capital asset events during the current fiscal year for governmental activities included the
following:
o Replacement of departmental vehicles totaling $2.5 million.
o Equipment replacement totaling $2.3 million.
o Completion of various building renovations at the 4-H Park totaling $1.2 million.
o Completion of Roads infrastructure $970 thousand.
o Various land/site improvements totaling $831 thousand.
Noteworthy capital asset events during the current fiscal year for business-type activities included the
following:
o Completion of Sanitary district infrastructure projects totaling $2.2 million, of which $477 thousand
was contributed by commercial developers to be maintained by the County.
o Disposal of land improvements at Bay Bridge Airport due to recent runway reconstruction project
totaling $1.5 million.
o Replacement of departmental vehicles totaling $510 thousand.
Additional information on the County’s capital assets can be found in Note 6 of this report.
Long-term debt: At the end of the current fiscal year, Queen Anne’s County Government had total bonded
debt, loans, OPEB (Other Post-Employment Benefits), net pension liability, LOSAP (Volunteer Fireman
Pension Plan Length of Service Award Program), compensated absence obligations, lease obligations, and
subscription obligations of $256.2 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 $256.2 million in debt, $51.6 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 $2.5 million, which are
restricted to payment of the Sanitary District’s subsequent year’s debt. See Note 11 for restricted assets and
subsequent year debt service obligations.
Debt activities are summarized as follows:
During the 2025 fiscal year, the County’s total net debt increased by $3.1 million (1.2 percent). Of this
amount, governmental debt decreased by $1.7 million (0.8 percent), while business-type debt increased by $4.8
million (10.3 percent). In fiscal year 2025, 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 2025 was $7.4 million. In addition, the net pension liability increased
by $14.2 million, total other post-employment benefit obligations decreased by $6.1 million, the LOSAP
liability decreased by $82 thousand, compensated absences increased by $236 thousand, lease liability
decreased by $83 thousand and subscription liability decreased by $181 thousand. Offsetting these increases
30

and decreases were changes in accruals, plus the County’s repayment of existing debt in accordance with
established repayment schedules for bonds, notes, and capital lease agreements.
Additional information on the County’s long-term debt can be found in Note 9 of this report.
The public local laws of Queen Anne’s County limit the amount of general obligation debt to no more than
$8.0 million, beyond any bonded indebtedness of the County. Currently, approximately $7.5 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.
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 2026 fiscal year:
 Net assessable real property base is projected to increase by 5.2 percent over the previous year, based
on State Assessment Office values used to compute the Constant Yield rate.
 Income tax revenue was projected at $89.5 million for the 2026 budget.
The following are a few of the highlights from the fiscal year 2026 budget:
o OPEB shall continue to be funded in accordance with the approved ten-year plan;
o The Board of Education will be funded at $7.6 million above Maintenance of Effort in fiscal
year 2026;
o The County’s property tax rates remained the same; and
o The County’s 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 and Finance
Accounting section, Link to 2025 Annual Comprehensive Financial Report (ACFR)).
31

32

B F S
ASIC INANCIAL TATEMENTS
33

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
June 30, 2025
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
Equity in Pooled Cash and Investments $ 147,569,407 $ 15,000,502 $ 162,569,909
Cash and Cash Equivalents - - -
Taxes Receivable (Net) 1,156,083 - 1,156,083
Accounts and Loans Receivable (Net) 8,081,792 784,735 8,866,527
Special Assessments (Net) 787,513 - 787,513
Lease receivable 806,795 1,635,904 2,442,699
Internal Balances 1,035,547 (1,035,547) -
Due from Primary Government - - -
Due from Other Governments 52,178,082 267,167 52,445,249
Inventories 1,223,652 828,443 2,052,095
Prepaid Items 1,003,872 2,520 1,006,392
Endowment Fund - - -
Restricted Assets:
LOSAP Plan Assets 7,034,767 - 7,034,767
Equity in Pooled Cash and Investments 1,376,884 28,645,992 30,022,876
Accounts Receivable (Net) - 2,776,359 2,776,359
Special Assessments Receivable (Net) - 19,442,772 19,442,772
Capital Assets:
Nondepreciable Assets 90,123,130 21,305,909 111,429,039
Depreciable and Amortized Assets, Net 106,633,068 128,035,490 234,668,558
Total Assets 419,010,592 217,690,246 636,700,838
DEFERRED OUTFLOWS OF RESOURCES
OPEB 439,598 99,000 538,598
Pension Benefits 31,995,860 2,619,938 34,615,798
LOSAP Benefits 1,087,051 - 1,087,051
Deferred Charge on Refunding 163,681 2,358 166,039
Total Deferred Outflows of Resources 33,686,190 2,721,296 36,407,486
LIABILITIES
Accounts Payable and Other Current Liabilities 10,175,876 1,954,786 12,130,662
Accrued Interest Payable 1,645,665 157,073 1,802,738
Due to Component Units 2,007,138 - 2,007,138
Due to Other Governmental Agencies 331,495 - 331,495
Unearned Revenue 1,273,783 152,017 1,425,800
Escrow Deposits - 26,032 26,032
Noncurrent Liabilities:
Due within One Year 14,200,511 2,788,176 16,988,687
Due in More than One Year 190,479,410 48,778,006 239,257,416
Total Liabilities 220,113,878 53,856,090 273,969,968
DEFERRED INFLOWS OF RESOURCES
OPEB 13,893,431 1,832,508 15,725,939
Pension Benefits 3,448,862 415,260 3,864,122
LOSAP Benefits 2,688,512 - 2,688,512
Lease receivable 774,456 1,590,674 2,365,130
Deferred Inflows related to Refundings 115,500 1,325 116,825
Deferred Assessments 787,529 19,472,327 20,259,856
Deferred Fees 39,008 - 39,008
Total Deferred Inflows of Resources 21,747,298 23,312,094 45,059,392
NET POSITION
Net Investment in Capital Assets 128,115,922 106,302,837 234,418,759
Amounts Restricted for:
General Government 16,850,377 - 16,850,377
Economic/Community Development 3,097,352 - 3,097,352
Public Safety 7,327,761 - 7,327,761
Conservation of Natural Resources 2,494,176 - 2,494,176
Social Services 727,514 - 727,514
Debt Service - 3,653,858 3,653,858
Capital Projects - - -
Other Purposes - - -
Unrestricted Amounts (Deficit) 52,222,504 33,286,663 85,509,167
Total Net Position $ 210,835,606 $ 143,243,358 $ 354,078,964
The accompanying notes to the basic financial statements are an integral part of this statement.
34

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
June 30, 2025
(CONTINUED)
COMPONENT UNITS
BOARD OF FREE HOUSING
EDUCATION LIBRARY AUTHORITY
$ - $ - $ -
17,470,449 1,551,571 1,137,295
- - -
651,019 38,554 92,827
- - -
- - -
- - -
2,007,138 - -
2,530,664 - -
56,805 - -
132,647 35,396 -
- 139,821 -
- - -
- - -
- - -
- - -
34,609,670 29,850 1,101,448
142,862,897 1,673,770 12,700,488
200,321,289 3,468,962 15,032,058
36,013,260 59,275 -
3,754,905 - -
- - -
- - -
39,768,165 59,275 -
15,851,605 108,653 187,653
- - -
- - -
- - -
1,300,086 - 104,563
- - -
864,631 5,429 360,793
156,713,659 510,373 737,300
174,729,981 624,455 1,390,309
106,717,289 221,296 -
206,926 - -
- - -
- - -
- - -
- - -
- 73,091 -
106,924,215 294,387 -
176,555,450 1,677,205 12,738,409
- - -
- - -
- - -
- - -
- - -
- - -
77,829 - -
1,812,590 88,580 367,189
(220,010,611) 843,610 536,151
$ (41,564,742) $ 2,609,395 $ 13,641,749
The accompanying notes to the basic financial statements are an integral part of this statement.
35

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
PRIMARY GOVERNMENT
OPERATING CAPITAL
CHARGES FOR GRANTS AND GRANTS AND TOTAL
EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS REVENUE
PRIMARY GOVERNMENT
Governmental Activities
General Government $ 26,179,090 $ 1 ,949,432 $ 1,586,121 $ 1,941,368 $ 5,476,921
Public Safety 54,655,168 3 ,040,986 2,340,500 213,051 5,594,537
Public Works 17,436,351 1 ,112,618 8,826 291,591 1,413,035
Parks & Recreation 7,032,764 1 ,189,973 150 383,073 1,573,196
Health and social services 8,458,369 2 9,624 3,126,948 398,357 3,554,929
Education and Library 101,119,281 2 ,075,142 - - 2,075,142
Conservation of Natural Resources 3,463,854 1 3,955 19,273 1,462,918 1,496,146
Economic/Community Development 4,107,120 - 1,309,156 - 1,309,156
Interest and Fiscal Charges 2,695,256 4 7,669 - - 47,669
Total Governmental Activities 225,147,253 9 ,459,399 8,390,974 4,690,358 22,540,731
Business-type Activities
Water and Sewer 19,846,575 1 2,735,451 1,811,221 477,452 15,024,124
Airport 1,459,540 1 2,086 88,163 - 100,249
Golf Course 744,055 6 55,355 - - 655,355
Public Landings and Marinas 858,122 4 51,542 246,225 - 697,767
Total Business-type Activities 22,908,292 1 3,854,434 2,145,609 477,452 16,477,495
Total Primary Government $ 248,055,545 $ 2 3,313,833 $ 10,536,583 $ 5,167,810 $ 39,018,226
COMPONENT UNITS
Board of Education $ 134,810,562 $ 1 ,361,401 $ 30,416,583 $ 21,383,171 $ 53,161,155
Free Library 3,439,476 2 3,126 416,172 - 439,298
Housing Authority 5,129,626 1 ,481,764 2,479,308 - 3,961,072
Total Component Units $ 143,379,664 $ 2 ,866,291 $ 33,312,063 $ 21,383,171 $ 57,561,525
General Revenues
Local Property Tax
Local Income Tax
Other Local Taxes
Admission and Amusement Taxes
Recordation Taxes
Hotel Taxes
County Transfer Taxes
State Shared Taxes
Grants and Contributions Not Restricted to Specific Programs
Investment Income
Miscellaneous
Transfers In (Out)
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning of Year, As Restated
Net Position - End of Year
The accompanying notes to the basic financial statements are an integral part of this statement.
36

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
(CONTINUED)
NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION
PRIMARY GOVERNMENT COMPONENT UNITS
GOVERNMENTAL BUSINESS-TYPE BOARD OF FREE HOUSING
ACTIVITIES ACTIVITIES TOTAL EDUCATION LIBRARY AUTHORITY
$ ( 20,702,169) $ - $ (20,702,169) $ - $ - $ -
( 49,060,631) - (49,060,631) - - -
( 16,023,316) - (16,023,316) - - -
( 5,459,568) - (5,459,568) - - -
( 4,903,440) - (4,903,440) - - -
( 99,044,139) - (99,044,139) - - -
( 1,967,708) - (1,967,708) - - -
( 2,797,964) - (2,797,964) - - -
( 2,647,587) - (2,647,587) - - -
( 202,606,522) - (202,606,522) - - -
- (4,822,451) (4,822,451) - - -
- (1,359,291) (1,359,291) - - -
- (88,700) (88,700) - - -
- (160,355) (160,355) - - -
- (6,430,797) (6,430,797) - - -
$ ( 202,606,522) $ (6,430,797) $ (209,037,319) $ - $ - $ -
$ - $ - $ - $ (81,649,407) $ - $ -
- - - - (3,000,178) -
- - - - - (1,168,554)
- - - (81,649,407) (3,000,178) (1,168,554)
87,632,233 - 87,632,233 - - -
97,132,220 - 97,132,220 - - -
272,787 - 272,787 - - -
9,678,920 - 9,678,920 - - -
1,213,347 - 1,213,347 - - -
3,414,046 - 3,414,046 - - -
1,865,957 - 1,865,957 - - -
- - - 1 07,159,799 3,004,584 818,009
7,932,266 1,817,477 9,749,743 5 42,336 91,113 822
1,596,056 1,323,863 2,919,919 1 2,422 6,032 480,321
( 118,936) 118,936 - - - -
210,618,896 3,260,276 213,879,172 1 07,714,557 3,101,729 1,299,152
8,012,374 (3,170,521) 4,841,853 2 6,065,150 101,551 130,598
202,823,232 146,413,879 349,237,111 (67,629,892) 2,507,844 13,511,151
$ 210,835,606 $ 143,243,358 $ 354,078,964 $ (41,564,742) $ 2,609,395 $ 13,641,749
The accompanying notes to the basic financial statements are an integral part of this statement.
37

QUEEN ANNE'S COUNTY, MARYLAND
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2025
MAJOR FUNDS NON-MAJOR TOTAL
GENERAL GENERAL ROADS GRANTS GOVERNMENTAL GOVERNMENTAL
FUND CAPITAL CAPITAL FUND FUNDS FUNDS
ASSETS
Cash and Cash Equivalents $ 77,458,429 $ 34,054,675 $ 10,297,972 $ 57,266 $ 25,701,065 $ 147,569,407
Prepaid Items 1,003,872 - - - - 1,003,872
Receivables:
Taxes Receivable (Net) 1,156,083 - - - - 1,156,083
Accounts Receivable (Net) 609,491 540,075 - 103,086 67,938 1,320,590
Lease Receivable 806,795 - - - - 806,795
Loans Receivable (Net) - - - - 6,761,202 6,761,202
Special Assessments (Net) - - 275,628 - 511,885 787,513
Due from Other Governments 47,476,138 80,482 - 500,155 1,500,494 49,557,269
Due from Other Funds 281,073 813,658 - - - 1,094,731
Inventory - - - - 1,223,652 1,223,652
Restricted:
Restricted LOSAP Plan Assets 7,034,767 - - - - 7,034,767
Restricted Equity in Pooled Cash - 1,376,884 - - - 1,376,884
Total Assets $ 135,826,648 $ 36,865,774 $ 10,573,600 $ 660,507 $ 35,766,236 $ 219,692,765
LIABILITIES
Accrued Liabilities $ 7,335,152 $ 673,648 $ 6,449 $ 47,595 $ 1,746,857 $ 9,809,701
Due to Other Funds - - - - 59,184 59,184
Due to Component Units - 2,007,138 - - - 2,007,138
Due to Other Governmental Agencies - - - - 331,495 331,495
Unearned Revenue 16,946 - - 612,912 643,925 1,273,783
Total Liabilities 7,352,098 2,680,786 6 ,449 660,507 2,781,461 13,481,301
DEFERRED INFLOWS OF RESOURCES
Unavailable Income Taxes 38,748,955 - - - - 38,748,955
Unavailable Property Taxes 162,470 - - - - 162,470
Unavailable Benefit Assessments - - 275,644 - 511,885 787,529
Unavailable Fees - - - - 39,008 39,008
Unavailable Lease Revenue 774,456 - - - - 774,456
Total Deferred Inflows 39,685,881 - 275,644 - 550,893 40,512,418
FUND BALANCES
Nonspendable 1,036,210 - - - 1,223,652 2,259,862
Restricted 23,638,847 3,112,789 - - 6,612,066 33,363,702
Committed 10,344,918 6,292,834 926,238 - 24,693,145 42,257,135
Assigned - 24,779,365 9,365,269 - 911,643 35,056,277
Unassigned 53,768,694 - - - ( 1,006,624) 52,762,070
Total Fund Balances 88,788,669 34,184,988 10,291,507 - 32,433,882 165,699,046
Total Liabilities, Deferred Inflows
and Fund Balances $ 135,826,648 $ 36,865,774 $ 10,573,600 $ 660,507 $ 35,766,236 $ 219,692,765
The accompanying notes to the basic financial statements are an integral part of this statement.
38

QUEEN ANNE'S COUNTY, MARYLAND
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
June 30, 2025
Total Fund Balance - Governmental Funds $ 1 65,699,046
Capital assets used in governmental fund activities are not current financial resources
and therefore are not reported in the funds. 196,756,198
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. 2,620,813
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 162,470
Income Taxes deferred in governmental funds 38,748,955
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.
Liability for Retirement Incentive and Employee Contracts (366,175)
Bonds and Notes Payable (113,219,246)
Accrued Interest Payable - long term debt (1,615,734)
Accrued Interest Payable - leases (14,448)
Accrued Interest Payable - Subscription (15,483)
Lease Liability (496,953)
Subscription Liability (725,317)
OPEB (19,219,105)
Net Pension Liability (55,597,697)
Net LOSAP Liability (11,098,220)
Accrued Compensated Absences (4,323,383)
Deferred outflow of resources - OPEB 439,598
Deferred outflow of resources - Maryland State Pension 31,995,860
Deferred outflow of resources - LOSAP 1,087,051
Deferred outflow of resources - Refundings 163,681
Deferred inflow of resources - OPEB (13,893,431)
Deferred inflow of resources - Maryland State Pension (3,448,862)
Deferred inflow of resources - LOSAP (2,688,512)
Deferred inflow of resources - Refundings (115,500)
Total Net Position - Governmental Activities $ 210,835,606
The accompanying notes to the basic financial statements are an integral part of this statement.
39

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
MAJOR FUNDS NON-MAJOR TOTAL
GENERAL GENERAL ROADS GRANTS GOVERNMENTAL GOVERNMENTAL
FUND CAPITAL CAPITAL FUND FUNDS FUNDS
REVENUES
Taxes
Local Property Tax $ 87,494,793 $ - $ - $ - $ 61,894 $ 87,556,687
Local Income Tax 92,720,625 - - - - 92,720,625
Admission and Amusement Taxes 272,787 - - - - 272,787
Recordation Taxes 9,385,619 - - - 293,301 9,678,920
Hotel Taxes 1,213,347 - - - - 1,213,347
County Transfer Taxes 3,414,046 - - - - 3,414,046
State Shared Taxes - - - - 1,865,957 1,865,957
Franchise Fee 332,058 - - - - 332,058
Licenses and Permits 1,004,502 36,895 - - - 1,041,397
Intergovernmental 3,383,937 3,286,354 118,939 1,815,735 4,420,712 13,025,677
Charges for Current Services 4,671,784 90,358 33,715 32,054 3,190,116 8,018,027
Fines and Forfeitures 50,961 - - - 36,951 87,912
Investment Income 6,500,117 302,634 283,982 - 845,533 7,932,266
Donations 6 50 - - - 35,010 35,660
Miscellaneous 1,226,238 81,006 16,177 155,499 117,136 1,596,056
Total Revenues 211,671,464 3,797,247 452,813 2,003,288 10,866,610 228,791,422
EXPENDITURES
Current
General Government 16,815,075 2,596,909 - 109,891 1,023,275 20,545,150
Public Safety 42,683,078 1,240,592 - 565,103 544,553 45,033,326
Public Works 8,982,234 1,193,102 1,502,908 - 6,200,506 17,878,750
Parks & Recreation 6,587,607 298,092 - 28,666 - 6,914,365
Health and Social Services 2,466,877 698,989 - 251,711 5,691,275 9,108,852
Education and Library 80,064,760 20,804,951 - - - 100,869,711
Conservation of Natural Resources 909,133 254,076 - 19,273 2,320,691 3,503,173
Economic/Community Development 2,062,174 4 ,165 - 942,186 1,373,301 4,381,826
Intergovernmental 665,940 - - - - 665,940
Miscellaneous 7,859,623 - - - - 7,859,623
Capital Outlay - 4,189,725 1,671,040 118,458 119,743 6,098,966
Debt Service
Principal 8,641,831 - - - 47,816 8,689,647
Debt Issuance Costs - 217,705 - - - 217,705
Interest and Fiscal Charges 3,838,431 - - - - 3,838,431
Total Expenditures 181,576,763 31,498,306 3,173,948 2,035,288 17,321,160 235,605,465
Excess of Revenues Over (Under) Expenditures 30,094,701 ( 27,701,059) ( 2,721,135) ( 32,000) ( 6,454,550) ( 6,814,043)
OTHER FINANCING SOURCES (USES)
Issuance of Debt - ( 1,289,011) 1,289,011 - - -
Proceeds of Capital Asset Disposals 52,860 2 ,912 - - 23,903 79,675
Insurance Proceeds 226,231 - - - 10,874 237,105
Subscription-Based IT Arrangements 208,958 - - - - 208,958
Transfers In 2,167,290 7,117,445 5,214,061 32,000 9,012,769 23,543,565
Transfers Out ( 21,475,549) - - - ( 2,186,952) ( 23,662,501)
Other Financing Sources (Uses) ( 18,820,210) 5,831,346 6,503,072 32,000 6,860,594 406,802
Change in Fund Balances 11,274,491 ( 21,869,713) 3,781,937 - 406,044 ( 6,407,241)
Fund Balances, July 1 77,514,178 56,054,701 6,509,570 - 32,027,838 172,106,287
Fund Balances, June 30 $ 88,788,669 $ 34,184,988 $ 10,291,507 $ - $ 32,433,882 $ 165,699,046
The accompanying notes to the basic financial statements are an integral part of this statement.
40

QUEEN ANNE'S COUNTY, MARYLAND
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
Net change in fund balance - Governmental Funds $ ( 6,407,241)
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 7,912,100
Current year disposals of capital assets (176,739)
Depreciation expenses recorded in the Statement of Activities (8,732,565)
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 (237,963)
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 75,546
Change in Income Tax Deferred Inflows 4,411,595
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 (9,519)
Issuance of long-term debt (e.g., bonds, notes, and financing 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 9,129,474
Bond Premium amortization 872,737
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 - long term debt 145,097
Accrued Interest Payable - leases 1,575
Accrued Interest Payable - Subscription 5,881
Lease Liability 55,401
Subscription Liability 180,518
OPEB 5,433,472
Net pension liability - Maryland State Pension (13,875,446)
Net LOSAP Liability 82,023
Accrued Compensated Absences (174,848)
Deferred outflow of resources - OPEB (232,469)
Deferred outflow of resources - Maryland State Pension 11,627,911
Deferred outflow of resources - LOSAP (264,207)
Deferred outflow of resources - Refunding (81,840)
Deferred inflow of resources - OPEB (1,735,225)
Deferred inflow of resources - Maryland State Pension (182,221)
Deferred inflow of resources - LOSAP 168,961
Deferred inflow of resources - Refunding 20,366
Change in Net Position - governmental activities $ 8,012,374
The accompanying notes to the basic financial statements are an integral part of this statement.
41

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
ENTERPRISE FUNDS
June 30, 2025
SANITARY DISTRICT
SEWER WATER RESTRICTED DEBT SERVICE
ASSETS OPERATIONS OPERATIONS FUND FUND TOTAL
Current Assets
Unrestricted
Equity in Pooled Cash $ 5,991,002 $ 7,073,604 $ - $ - $ 13,064,606
Prepaid Items - - - - -
Accounts Receivable (Net) 575,276 116,309 - - 691,585
Due from Other Governments - - - - -
Lease receivable - 1,292,357 - - 1,292,357
Inventories 800,462 - - - 800,462
Restricted
Restricted Equity in Pooled Cash - - 26,485,159 2,160,833 28,645,992
Restricted Accounts Receivable (Net) - - 2,443,237 333,122 2,776,359
Total Current Assets 7,366,740 8,482,270 28,928,396 2,493,955 47,271,361
Noncurrent Assets
Restricted
Special Assessments Receivable (Net) - - 1,057,806 18,384,966 19,442,772
Total Noncurrent Restricted Assets - - 1,057,806 18,384,966 19,442,772
Capital and Intangible Assets 158,267,408 41,672,883 - - 199,940,291
Less Accumulated Depreciation and Amortization ( 65,018,180) ( 15,627,592) - - ( 80,645,772)
Total Capital Assets, Net 93,249,228 26,045,291 - - 119,294,519
Total Assets 100,615,968 34,527,561 29,986,202 20,878,921 186,008,652
DEFERRED OUTFLOWS OF RESOURCES
OPEB 65,407 28,857 - - 94,264
Pension Benefits 1,821,334 526,328 - - 2,347,662
Deferred Charge on Refunding - - - - -
Total Deferred Outflows of Resources 1,886,741 555,185 - - 2,441,926
LIABILITIES
Current Liabilities
Payable from Unrestricted Assets
Accounts Payable 1,231,850 236,983 92,212 - 1,561,045
Accrued Interest Payable 134,986 - - - 134,986
Escrow Deposits - - - - -
Due to Other Funds - - - - -
Unearned Revenue 139,368 3,227 - - 142,595
Current Portion of Compensated Absences 190,670 127,113 - - 317,783
Current Portion of Lease Payable - - - - -
Current Portion of Bonds/Notes Payable 2,156,871 - - - 2,156,871
Total Current Liabilities 3,853,745 367,323 92,212 - 4,313,280
Noncurrent Liabilities
Payable from Unrestricted Assets
Compensated Absences 127,113 84,742 - - 211,855
OPEB 3,349,757 1,133,279 - - 4,483,036
Net Pension Liability 2,650,621 760,705 - - 3,411,326
Lease Payable - - - - -
Bonds/Notes Payable 38,130,496 - - - 38,130,496
Total Noncurrent Liabilities 44,257,987 1,978,726 - - 46,236,713
Total Liabilities 48,111,732 2,346,049 92,212 - 50,549,993
DEFERRED INFLOWS OF RESOURCES
OPEB 1,398,339 353,136 - - 1,751,475
Pension Benefits 274,511 91,972 - - 366,483
Bond Refundings - - - - -
Water and Sewer Assessments - - 1,057,990 18,414,337 19,472,327
Lease receivable - 1,248,001 - - 1,248,001
Total Deferred Inflows of Resources 1,672,850 1,693,109 1,057,990 18,414,337 22,838,286
NET POSITION
Net Investment in Capital Assets 52,155,322 26,045,291 - - 78,200,613
Amounts Restricted for:
Debt Service - - - 2,464,584 2,464,584
Unrestricted Amounts (Deficit) 562,805 4,998,297 28,836,000 - 34,397,102
Total Net Position $ 52,718,127 $ 31,043,588 $ 28,836,000 $ 2,464,584 $ 115,062,299
The accompanying notes to the basic financial statements are an integral part of this statement.
42

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
ENTERPRISE FUNDS
June 30, 2025
(CONTINUED)
TOTAL
PRIMARY
NON-MAJOR GOVERNMENT
BAY BRIDGE ENTERPRISE ENTERPRISE
AIRPORT FUNDS FUNDS
$ 1,134,968 $ 800,928 $ 15,000,502
- 2,520 2,520
34,071 59,079 784,735
20,942 246,225 267,167
343,547 - 1,635,904
18,730 9,251 828,443
- - 28,645,992
- - 2,776,359
1,552,258 1,118,003 49,941,622
- - 19,442,772
- - 19,442,772
27,931,875 11,530,781 239,402,947
( 6,470,774) ( 2,945,002) ( 90,061,548)
21,461,101 8,585,779 149,341,399
23,013,359 9,703,782 218,725,793
825 3,911 99,000
74,062 198,214 2,619,938
2,064 294 2,358
76,951 202,419 2,721,296
75,229 318,512 1,954,786
14,208 7,879 157,073
26,032 - 26,032
813,658 221,889 1,035,547
- 9,422 152,017
30,697 45,752 394,232
- 28,590 28,590
124,363 84,120 2,365,354
1,084,187 716,164 6,113,631
20,464 30,501 262,820
249,342 205,628 4,938,006
110,084 268,984 3,790,394
- 54,202 54,202
1,063,287 538,801 39,732,584
1,443,177 1,098,116 48,778,006
2,527,364 1,814,280 54,891,637
16,819 64,214 1,832,508
10,217 38,560 415,260
210 1,115 1,325
- - 19,472,327
342,673 - 1,590,674
369,919 103,889 23,312,094
20,222,979 7,879,245 106,302,837
1,189,274 - 3,653,858
( 1,219,226) 108,787 33,286,663
$ 20,193,027 $ 7,988,032 $ 143,243,358
The accompanying notes to the basic financial statements are an integral part of this statement.
43

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
SANITARY DISTRICT
SEWER WATER RESTRICTED DEBT SERVICE
OPERATIONS OPERATIONS FUND FUND TOTAL
OPERATING REVENUES
Charges for Services $ 7,697,753 $ 3,385,789 $ 9 81,185 $ 6 70,724 $ 12,735,451
Intergovernmental 881,221 - 930,000 - 1,811,221
Material Sales - 22,274 - - 22,274
Miscellaneous Revenues 269,834 256,186 - - 526,020
Total Operating Revenues 8,848,808 3,664,249 1 ,911,185 6 70,724 15,094,966
OPERATING EXPENSES
Cost of Sales and Services
Collection 4,126,252 - - - 4,126,252
Distribution - 582,238 - - 582,238
Treatment 2,309,242 2,179,267 - - 4,488,509
Shop 191,337 84,787 - - 276,124
Airport - - - - -
Recreation - - - - -
Total Cost of Sales and Services 6,626,831 2,846,292 - - 9,473,123
Administration and Inspection 1,315,803 3,220,390 - - 4,536,193
OPEB ( 302,779) (95,005) - - ( 397,784)
Pension Liability Adjustment ( 316,170) (65,306) - - ( 381,476)
Depreciation and amortization 2,967,755 942,901 - - 3,910,656
Total Operating Expenses 10,291,440 6,849,272 - - 17,140,712
Operating Income (Loss) ( 1,442,632) ( 3,185,023) 1 ,911,185 6 70,724 ( 2,045,746)
NON-OPERATING REVENUES (EXPENSES)
Investment Income 274,039 154,593 1 ,011,089 3 75,399 1,815,120
Interest Expense ( 424,511) - - - ( 424,511)
Loss on Disposal of Capital Assets - ( 2,281,352) - - ( 2,281,352)
Total Non-Operating Revenues (Expenses) ( 150,472) ( 2,126,759) 1 ,011,089 3 75,399 ( 890,743)
Income (Loss) Before Contributions and Transfers ( 1,593,104) ( 5,311,782) 2 ,922,274 1 ,046,123 ( 2,936,489)
Capital Contributions, Fees and Grants 257,723 219,729 - - 477,452
TRANSFERS
Transfers In 2,634,334 2,237,688 260,753 1 ,039,566 6,172,341
Transfers Out ( 184,031) (76,723) (3,277,254) (2,545,760) ( 6,083,768)
Net Transfers In (Out) 2,450,303 2,160,965 (3,016,501) (1,506,194) 88,573
Change in Net Position 1,114,922 ( 2,931,088) ( 94,227) (460,071) ( 2,370,464)
Total Net Position - Beginning of Year 51,603,205 33,974,676 2 8,930,227 2 ,924,655 117,432,763
Total Net Position - End of Year $ 52,718,127 $ 31,043,588 $ 2 8,836,000 $ 2 ,464,584 $ 115,062,299
The accompanying notes to the basic financial statements are an integral part of this statement.
44

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(CONTINUED)
TOTAL
PRIMARY
NON-MAJOR GOVERNMENT
BAY BRIDGE ENTERPRISE ENTERPRISE
AIRPORT FUNDS FUNDS
$ 12,086 $ 1,106,897 $ 13,854,434
88,163 246,225 2,145,609
228,534 70,351 321,159
447,902 28,782 1,002,704
776,685 1,452,255 17,323,906
- - 4,126,252
- - 582,238
- - 4,488,509
- - 276,124
756,807 - 756,807
- 1,403,592 1,403,592
756,807 1,403,592 11,633,522
- - 4,536,193
(3,836) (14,494) ( 416,114)
(11,509) (33,723) ( 426,708)
656,261 231,686 4,798,603
1,397,723 1,587,061 20,125,496
( 621,038) ( 134,806) ( 2,801,590)
2,357 - 1,817,477
(61,817) (15,116) ( 501,444)
- - ( 2,281,352)
(59,460) (15,116) ( 965,319)
( 680,498) ( 149,922) ( 3,766,909)
- - 477,452
25,796 4,567 6,202,704
- - ( 6,083,768)
25,796 4,567 118,936
( 654,702) ( 145,355) ( 3,170,521)
20,847,729 8,133,387 146,413,879
$ 20,193,027 $ 7,988,032 $ 143,243,358
The accompanying notes to the basic financial statements are an integral part of this statement.
45

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
SANITARY DISTRICT
SEWER WATER RESTRICTED DEBT SERVICE
OPERATIONS OPERATIONS FUND FUND TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 7,532,651 $ 3,377,343 $ 1,375,538 $ 1,121,071 $ 13,406,603
Receipts from other operating sources 1,203,489 119,295 930,000 - 2,252,784
Payments to suppliers (2,794,752) (3,892,618) - - (6,687,370)
Payments to employees and on behalf of employees (5,084,656) (1,934,469) - - (7,019,125)
Net Cash Provided (Used) by Operating Activities 856,732 (2,330,449) 2,305,538 1,121,071 1,952,892
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in from other funds 2,634,334 2,237,688 260,753 1,039,566 6,172,341
Transfers to other funds (184,031) (76,723) (3,277,254) (2,545,760) (6,083,768)
(Payments) Receipts of interfund loans - - - - -
Net Cash Provided (Used) by Noncapital Financing Activities 2,450,303 2,160,965 (3,016,501) (1,506,194) 88,573
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from capital grants - - - - -
Proceeds from capital debt 7,427,240 - - - 7,427,240
Proceeds from lease receivable - 127,574 - - 127,574
Principal paid on capital debt (2,137,804) - - - (2,137,804)
Interest paid on capital debt (407,956) - - - (407,956)
Acquisition and construction of capital assets (5,007,190) (408,187) - - (5,415,377)
Net Cash Used by Capital and Related Financing Activities (125,710) (280,613) - - (406,323)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income 274,039 154,593 1,011,089 375,399 1,815,120
Net Cash Provided by Investing Activities - Investment Income 274,039 154,593 1,011,089 375,399 1,815,120
Net Increase (Decrease) in Cash and Cash Equivalents 3,455,364 (295,504) 300,126 (9,724) 3,450,262
Balances - Beginning of the year 2,535,638 7,369,108 26,185,033 2,170,557 38,260,336
Balances - End of the year $ 5,991,002 $ 7,073,604 $ 26,485,159 $ 2,160,833 $ 41,710,598
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (loss) $ (1,442,632) $ ( 3,185,023) $ 1,911,185 $ 670,724 $ ( 2,045,746)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation and amortization 2,967,755 942,901 - - 3,910,656
Lease revenue - deferred inflow - (140,118) - - (140,118)
(Increase) decrease in assets:
Accounts receivable, net (165,102) (30,720) 302,032 420,978 527,188
Special assessments receivable, net - - (350,994) 167,552 (183,442)
Due from Other Governments - - - - -
Inventories (48,155) - - - (48,155)
Increase (decrease) in liabilities:
Accounts payable 178,389 125,546 92,137 - 396,072
Escrow deposits - - - - -
Unearned revenue 52,434 3,227 351,178 (138,183) 268,656
Compensated absences (67,008) 114,048 - - 47,040
OPEB (302,779) (95,005) - - (397,784)
Pension Obligation (316,170) (65,305) - - (381,475)
Net Cash Provided (Used) by Operating Activities $ 856,732 $ ( 2,330,449) $ 2,305,538 $ 1,121,071 $ 1,952,892
Noncash investing, capital and financing activities:
Contributed capital assets $ 257,723 $ 219,729 $ - $ - $ 477,452
Change in capital assets acquired through accounts and retainage payable $ 327,971 $ - $ - $ - $ 327,971
The accompanying notes to the basic financial statements are an integral part of this statement.
46

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(CONTINUED)
TOTAL
PRIMARY
NON-MAJOR GOVERNMENT
BAY BRIDGE ENTERPRISE ENTERPRISE
AIRPORT FUNDS FUNDS
$ 270,519 $ 1,209,159 $ 14,886,281
431,977 43,402 2,728,163
(533,352) (649,431) (7,870,153)
(204,455) (516,783) (7,740,363)
(35,311) 86,347 2,003,928
25,796 4,567 6,202,704
- - (6,083,768)
(61,678) 35,960 (25,718)
(35,882) 40,527 93,218
(18,289) - (18,289)
- - 7,427,240
86,232 - 213,806
(120,080) (108,798) (2,366,682)
(62,437) (16,328) (486,721)
(549,961) (60,546) (6,025,884)
(664,535) (185,672) (1,256,530)
2,357 - 1,817,477
2,357 - 1,817,477
(733,371) (58,798) 2,658,093
1,868,339 859,726 40,988,401
$ 1,134,968 $ 800,928 $ 43,646,494
$ (621,038) $ (134,806) $ ( 2,801,590)
656,261 231,686 4,798,603
(87,407) - (227,525)
29,399 31,911 588,498
- - (183,442)
- (231,226) (231,226)
38,946 (1,147) (10,356)
(26,083) 230,758 600,747
5 00 - 5 00
(16,681) (379) 251,596
6,137 7,767 60,944
(3,836) (14,494) (416,114)
(11,509) (33,723) (426,707)
$ (35,311) $ 86,347 $ 2,003,928
$ - $ - $ 477,452
$ (278,715) $ - $ 49,256
The accompanying notes to the basic financial statements are an integral part of this statement.
47

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF FIDUCIARY NET POSITION
PRIVATE PURPOSE TRUST, OTHER POST-EMPLOYMENT BENEFIT TRUST, AND CUSTODIAL FUNDS
June 30, 2025
PRIVATE OTHER
PURPOSE POST-
TRUST FUND EMPLOYMENT
TAX SALE BENEFIT CUSTODIAL
DEPOSITS TRUST FUND FUNDS
ASSETS
Cash and Cash Equivalents $ 443,016 $ 766,349 $ 1,509,519
Investments, at Fair Value
Debt Securities - 7,668,117 -
Fixed Income Fund - 1,251,743 -
Mutual and Global Funds - 12,003,899 -
International - 4,134,992 -
Total Investments - 25,058,751 -
Total Assets 443,016 25,825,100 1,509,519
LIABILITIES
Accounts Payable and Other Liabilities 143,279 45,855 1,259
Due to Other Governments - - 307,607
Total Liabilities 143,279 45,855 308,866
NET POSITION
Restricted for:
Held in Trust 299,737 - -
Other Post-Employment Benefits - 25,779,245 -
Individuals, Organizations, and other Governments - - 1,200,653
Total Net Position $ 299,737 $ 25,779,245 $ 1,200,653
The accompanying notes to the basic financial statements are an integral part of this statement.
48

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE PURPOSE TRUST, OTHER POST-EMPLOYMENT BENEFIT TRUST, AND CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
PRIVATE OTHER
PURPOSE POST-
TRUST FUND EMPLOYMENT
TAX SALE BENEFIT CUSTODIAL
DEPOSITS TRUST FUND FUNDS
ADDITIONS
Contributions:
Tax Sale Collections in Excess of Tax Due $ 150,434 $ - $ -
Employers - 3,471,912 -
Members - 516,498 -
Total Contributions 150,434 3,988,410 -
Investment Earnings:
Net Change in the Fair Value of Investments - 1,796,852 -
Interest - 656,612 -
Total Investment Earnings - 2,453,464 -
Less Investment Administrative Expenses - 10,294 -
Net Investment Earnings - 2,443,170 -
Tax Ditch - - 35,918
Zoning Deposits - - 206,531
Tax Collections for Other Governments - - 17,895,321
Motor Vehicle Administration - - 233,820
Escheat - Abandoned Property - - 62,732
Inmate Welfare - - 99,806
Total Additions 150,434 6,431,580 18,534,128
DEDUCTIONS
Distributions to Property Holders 173,348 - -
Claims Paid for Other Post-Employment Benefits - 2,530,256 -
Administrative Expenses - 113,536 -
Distribution of Tax Ditch Funds - - 37,800
Refund of Zoning Deposits - - 81,079
Payments of Tax to Other Governments - - 17,895,321
Payments to Motor Vehicle Administration - - 233,820
Payments of Escheat to Others - - 62,732
Distribution of Inmate Welfare Funds - - 108,298
Total Deductions 173,348 2,643,792 18,419,050
Net Increase in Fiduciary Net Position ( 22,914) 3,787,788 115,078
Net Position-Beginning of Year 322,651 21,991,457 1,085,575
Net Position-End of Year $ 299,737 $ 25,779,245 $ 1,200,653
The accompanying notes to the basic financial statements are an integral part of this statement.
49

QUEEN ANNE'S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
INDEX
Note
1 Summary of Significant Accounting Policies 51 - 62
2 Budgets and Budgetary Accounting 62 - 63
3 Cash, Investments and Investment Income 64 - 68
4 Accounts Receivable 69 - 70
5 Unearned Revenue 70
6 Capital Assets 71 - 75
7 Interfund Receivables and Payables 76
8 Interfund Transfers 76
9 Noncurrent Liabilities 77 - 84
10 Leases 84 - 88
11 Subscription-Based Information Technology Arrangements 88
12 Restricted Assets and Liabilities and Fund Balances 89 - 92
13 Risk Management 92
14 Retirement Plans 93 - 101
15 Deferred Compensation Plan 102
16 Other Post-Employment Benefits 102 - 116
17 Volunteer Fireman Pension Plan Length of Service Award Program 117 - 119
18 Deficit Equity Balances 120
19 Commitments, Contingencies, and Subsequent Events 120 - 121
20 Joint Venture 121 - 122
21 Pollution Remediation Obligations 122 - 123
22 Prior Period Adjustment 123
50

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 as a governmental 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.
51

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. REPORTING ENTITY (CONTINUED)
Discretely Presented Component Units (continued)
Queen Anne’s County Housing Authority is a component unit of the Queen Anne’s County Government by virtue of the
Housing Authority’s fiscal dependency on the County. Beginning in fiscal year 2025, the Housing Authority is again a component
unit of the County, as it was in 2012 and prior. Through a partnership agreement the County’s government is designated as the
management agency for the Housing Authority and shares responsibility for overseeing properties, projects, and staff. The
Housing Authority Board retains its governance and oversight role.
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
Queen Anne’s County Free Library Housing Authority
202 Chesterfield Avenue 121 S. Commerce Street PO Box 280
Centreville, MD 21617 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 20.
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.
52

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)
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.
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; parks and recreation; 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 and Grants Fund as part of the required supplementary information section located after the Notes to the basic financial
statements. A budget-to-actual comparison is also included for all non-major governmental funds with legally adopted budgets in the
supplementary information section.
The County and many other governments revise their original budgets over the course of the year for a variety of reasons; the County’s
amended budget is reflected in a separate column in the budget-to-actual comparison statements. Variances are calculated based on
final budgets.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
Measurement Focus and Basis of Accounting
Full Accrual Basis Financial Statements – The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenue in the year in which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility
requirements imposed by the provider have been met. Capital assets and related depreciation are recorded in these statements, as well
as debt, accrued compensated absences, other post-employment benefits, and other accruals.
Modified Accrual Basis Financial Statements – Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting.
53

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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. Custodial funds report assets, liabilities, and changes in net position.
Since fiduciary funds are, by their very nature, independent of the County, they are omitted from all government-wide statements.
Financial Statement Presentation - The County reports the following major governmental and proprietary funds, as well as fiduciary
funds.
54

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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.
Grants Fund – This special revenue fund accounts for activities funded by grants and is included in various governmental
functions, depending on the grant.
Non-Major Governmental Funds – There are eighteen non-major governmental funds, which are used to account for and
report the proceeds of specific revenue sources. Included in the eighteen non-major governmental funds are fifteen 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 9,900 customers.
Water Operations - This fund is used to account for the operation of the water supply system serving
approximately 5,500 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.
55

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 only accounts for the Queen Anne’s County portion
of the MACo (Maryland Association of Counties) pooled OPEB Investment Trust Fund.
Custodial Funds - These funds are used to account for deposits that are collected and held on behalf of individuals,
organizations, and other governments. These monies include escrow deposits for tax ditches, zoning deposits, state
and town tax collections, motor vehicle administration deposits, abandoned property, and inmate welfare funds.
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.
56

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 weighted average cost
method. Inventories held for resale are reported at lower of cost or market and 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.
57

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 5 – 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 assets 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 assets 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)
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. In both the government-
wide and enterprise funds, the liability for OPEB is adjusted at the end of the fiscal year. Additional details regarding
OPEB can be found in Notes 9 and 16.
58

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
7) Net Pension Liability
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 14.
8) Volunteer Fireman Pension Plan Length of Service Award Program (LOSAP)
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
17.
9) Compensated Absences
Primary Government – The County recognizes a liability for compensated absences that meet the criteria outlined in
GASB Statement No. 101. A liability is recognized when the leave is attributable to services already rendered,
accumulates and carries forward, and it is more likely than not that the leave will be used or paid in the future. The
measurement of the liability is based on the employees’ pay rates at the end of the reporting period and includes
applicable salary-related payments. The current portion of this liability (expected to be paid within one year) is reported
in the government-wide financial statements and enterprise fund financial statements as a current liability, and the
remainder as a noncurrent liability. Compensated absences are reported in the governmental fund financial statements for
absences used within the 60 day time period under the current financial resources measurement focus.
Component Unit - Board of Education – Twelve-month employees earn annual leave at varying rates dependent
upon position and length of service. Annual leave generally must be taken by June 30 each year. For support
staff, up to 20 days may be transferred to the next fiscal year. For administrative staff, up to 33 days must be
transferred to the next fiscal year. Employees earn sick leave at varying rates per year depending upon position
and utilization. There is no limit on the accumulation of sick leave. At termination, employees are not paid for
accumulated sick leave; however, at retirement, a portion may be used as additional credited service under the
retirement plan. The Board recognizes a liability for compensated absences that meet the criteria outlined in GASB
Statement No. 101. A liability is recognized when leave is attributable to services already rendered, accumulates and
carries forward, and is more likely than not that the leave will be used or paid in the future. The measurement of the
liability is based on the employee’s pay rates at the end of the reporting period.
Component Unit – Library – The Library accrues a liability for certain compensated absences (primarily
vacation pay and certain accrued sick leave) that employees have earned but not have yet been paid.
Component Unit – Housing Authority – The liability for compensated absences reported in the financial
statements consists of leave that has not been used that is attributable to services already rendered, accumulates
and is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means.
The liability also includes amounts for leave that has been used for time off but has not yet been paid in cash or
settled through noncash means and certain other types of leave.
59

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
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.
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 surplus of $85,509,167. 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 the unrestricted net assets in the Governmental Activities column of the government-wide Statement
of Net Position. At June 30, 2025, the County has reported outstanding general obligation debt related to assets held by
the Board of Education amounting to $39,390,472 (of which $38,823,947 has been spent and the remaining $566,525
relates to unspent bond proceeds).
60

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
11) Net Position/Fund Equity (continued)
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, 2025, 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:
Governmental Business-type
Amounts Restricted for: Activities Activities
General government $ 16,850,377 $ -
Economic/community development 3 ,097,352 -
Public safety 7 ,327,761 -
Conservation of natural resources 2 ,494,176 -
Social services 7 27,514 -
Debt service - 3 ,653,858
Other Purposes - -
Total amounts restricted $ 30,497,180 $ 3,653,858
Note that unspent bond proceeds of $2,866,522 are included in restricted fund balance for the General Capital
Projects Fund. At the Government-Wide level, the unspent bond proceeds are offset by the liability.
In the fund financial statements, fund balances of governmental funds are classified as follows:
Nonspendable – amounts that cannot be spent either because they are not in a spendable form or because they are
legally or contractually required to be maintained intact. Nonspendable fund balances for the County include inventory
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.
61

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
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 small businesses that meet certain criteria and also principal residences, an installment plan is offered whereby total
tax is paid in two equal installments. The first installment is due by September 30. Beginning October 1, a 1% penalty is
charged on the first day of each month that the installment remains unpaid. This 1% penalty is based on the amount of
the first installment only. The second installment is due by December 31. Beginning January 1, the 1% penalty would
then include all outstanding balances. The County accepts partial payments.
For non-principal residences, payment is due in full by September 30. Beginning October 1, a penalty is charged for
each month that taxes remain unpaid. For new construction, completed and assessed between July 1 and December 31, a
supplementary tax is levied equal to half of the full-year levy. Payment in full is due by March 31. Beginning April 1, a
penalty is charged for each month that taxes remain outstanding.
Real and personal property taxes are levied at rates enacted by the County Commissioners in the annual budget
on the assessed value as determined by the Maryland Department of Assessments and Taxation. The rates of
levy cannot exceed the constant yield rate furnished by the Maryland Department of Assessments and Taxation
without public notice and only after public hearings. The County tax rate for the fiscal year ended June 30, 2025 was
$0.8300 per $100 of assessed value.
E. NEW ACCOUNTING POLICIES
The County adopted Government Accounting Standards Board Statement No. 101, Compensated Absences on July 1, 2024. This
statement’s objective is to better meet the information needs of financial statement users by updating the recognition and measurement
guidance for compensated absences.
The County adopted Government Accounting Standards Board Statement No. 102, Certain Risk Disclosures on July 1, 2024. This
statement’s objective is to provide users of the government financial statements with essential information about risks related to a
government’s vulnerabilities due to certain concentrations or constraints. Management has not identified any concentrations or
constraints that are expected to have a severe impact on the County’s ability to provide services or meet its obligations within this near
term.
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.
62

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING (CONTINUED)
During the fiscal year, the Commissioners may adopt supplemental appropriations. For the year ended June 30, 2025,
supplemental appropriations were as follows:
Original Final
Supplemental Appropriations Budget Budget Increase
General Fund - expenditures and transfers $ 191,173,501 $ 206,100,159 $ 14,926,658
Special Revenue Funds that adopt annual budgets
Grants Fund - expenditures and transfers $ 2,253,555 $ 2,458,175 $ 2 04,620
Non-Major Funds that adopt annual budgets -
Department of Aging - expenditures and transfers $ 4,094,408 $ 4,286,544 $ 1 92,136
Housing & Community Services - expenditures and transfers 1 ,483,563 2 ,161,588 6 78,025
Economic Development Incentive - expenditures and transfers 1 50,000 1 60,000 10,000
Roads Operating - expenditures and transfers 6 ,734,491 6 ,944,350 2 09,859
Community Partnerships for Children - expenditures and transfers 1 ,270,660 1 ,509,387 2 38,727
Agricultural Transfer - expenditures and transfers 5 ,068,102 5 ,727,746 6 59,644
Dredging Special Assessments - expenditures and transfers 47,816 1 ,097,816 1 ,050,000
Kent Narrows - expenditures and transfers 61,000 1 27,000 66,000
Community Reinvestment and Repair Commission - expenditures and transfers - 90,000 90,000
Total Special Revenue Funds that adopt annual budgets $ 21,163,595 $ 24,562,606 $ 3,399,011
All final budgets are presented as amended. The Finance Director may approve budget amendments of $10,000 or less, the
County Administrator may approve budget amendments of $100,000 or less, and amendments greater than $100,000 require
the approval of the County Commissioners.
Annual operating budgets are legally adopted for the General Fund, Grants Fund, and the following non-major governmental
funds: Department of Aging, Housing and Community Services, Economic Development Incentive, Roads Operating,
Community Partnerships for Children, Law Library, Inmate Welfare, Agricultural Transfer, Rural Legacy, Dredging Special
Assessments, Kent Narrows, Community Reinvestment and Repair Commission, 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.
63

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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, including certificates of deposit of $95,325,792 with local banks
(carrying value $96,104,604), all of which was covered by federal depository insurance or by collateral held by the County’s
agent 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, 2025, the County had investments in MLGIP of $98,428,238, which are recorded at cost, which
approximates fair value.
As of June 30, 2025, 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 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, 2025, the
weighted average maturity (WAM) for the Trust’s money market mutual fund investment was 37 days. At June 30, 2025, 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.
64

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 changes in fiduciary 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, 2025, of which Queen Anne’s County’s portion
was 24.9% of the total:
Level 1 Level 2 Level 3 Total
Investments by fair value level:
Debt Securities
U.S. Treasury Obligations $ - $ 12,574,138 $ - $ 12,574,138
U.S. Governmental Agencies - 4,759,300 - 4,759,300
Corporate & Foreign Bonds - 10,773,019 - 10,773,019
Municipal Obligations - 2,709,746 - 2,709,746
Equity and Mutual Fund Investments
Taxable Fixed Income Funds - 5,030,434 - 5,030,434
Mutual Funds 39,348,893 - - 39,348,893
Global Funds 8,891,709 - - 8,891,709
International 16,617,477 - - 16,617,477
Total $ 64,858,079 $ 35,846,637 $ - $ 100,704,716
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.
65

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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, 2025:
Investment Maturities (in Years)
Less than 1 1 - 5 6 - 10 More than 10 Total
Investments with Maturities
U.S. Treasury Obligations $ - $ 2,929,205 $ 2,866,178 $ 6,778,755 $ 12,574,138
U.S. Governmental Agencies - 180,054 325,699 4,253,547 4,759,300
Corporate & Foreign Bonds - 1,049,141 2,289,111 7,434,767 10,773,019
Municipal Obligations - - - 2,709,746 2,709,746
Total $ - $ 4,158,400 $ 5,480,988 $ 21,176,815 $ 30,816,203
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, 2025, the ratings of the underlying investments of the Trust’s
investments were as follows:
Rating
Baa1/Baa2/
Type Aaa Aa1/Aa2/ Aa3 A1/A2/A3 Baa3 Not Rated Total
U.S. Treasury Obligations $ - $ 12,398,879 $ - $ - $ 175,259 $ 12,574,138
U.S. Governmental Agencies - - - - 4,759,300 4,759,300
Corporate & Foreign Bonds 158,156 2,074,094 6,227,095 2,313,674 - 10,773,019
Municipal Obligations 430,276 1,624,933 87,528 - 567,009 2,709,746
Total $ 588,432 $ 16,097,906 $ 6,314,623 $ 2,313,674 $ 5,501,568 $ 30,816,203
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. All of the investments held by the Trust at June 30, 2025, were
exposed to custodial credit risk as the investments are uninsured and unregistered.
The following tables summarizes the composition of the Trust’s investment balances by type as well as the interest rate range
as of June 30, 2025:
Interest
Fair Value Rate Range
U.S. Treasury Obligations $ 12,574,138 3.63 to 4.75%
U.S. Governmental Agencies 4,759,300 1.30 to 5.00%
Corporate & Foreign Bonds 10,773,019 1.95 to 6.63%
Municipal Obligations 2,709,746 3.05 to 7.34%
Taxable Fixed Income Funds 5,030,434 N/A
Mutual Funds 39,348,893 N/A
Global Funds 8,891,709 N/A
International 16,617,477 N/A
Total $ 100,704,716
66

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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, 2025 that exceeded 5% of the total investment balance as of June 30,
2025:
Name Amount
VANGUARD 500 INDEX CL ADML $ 10,114,567
NEW WORLD FUND-R6 8,891,709
AMERICAN FUNDS INTERNATIONAL VNTG F-3 8,311,615
TRANSAMERICA TS&W INTERNATIONAL EQ-IS 8,305,863
FULLERTHALER BEHAVIORAL SC EQ R6 8,098,787
ISHARES MSCI USA QUALITY FACTOR ETF 6,519,727
VANGUARD MID-CAP INDEX FUND ADMIRAL SHARES 5,386,295
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, 2025, as the Trust did not have any
investments denominated in foreign currencies.
For the year ended June 30, 2025, the annual money-weighted rate of return on investments, net of expense, was 5.6%. The
money-weighted rate of return expresses investment performance, net of investment expenses, adjusted for the changing
amounts actually invested.
Capital Accounts
The Trust accounts for contributions, allocations, and redemptions on a per member capital account basis. The revenues,
consulting and management fees, and administrative service fee are allocated pro rata to the capital accounts of each member
based on committed capital. The fair value of member capital accounts 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 General Investment Account (GIA). The MassMutual Guaranteed Interest Account
(GIA) is a general account product. Because the GIA is a general account product offered through a group annuity contract,
participant principal and interest are backed by the entire general account assets of Empower Annuity Insurance Company of
America (EAICA).
The investment strategy employed for this product seeks to achieve consistent returns to support a competitive credited rate.
Bonds invested in the general account segment have an average maturity between three and seven years; are investment-
grade in quality; and are diversified across a range of fixed-income asset classes such as asset-backed securities, mortgage-
backed securities, commercial mortgage-backed securities, commercial mortgages and private equity.
General account products within retirement plans are offerings through which insurance companies guarantee both principal
and interest to participants invested in the products. This affords participants the ability to both preserve capital and receive a
generally higher credited rate than what is offered by money market funds in most interest rate environments. General
account products tend to be less than equities or bond funds.
67

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS (CONTINUED)
LOSAP Funds (Continued)
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.
The County’s LOSAP fund GIA account balance as of June 30, 2025 is $7,034,767 and is included in restricted LOSAP plan
assets on the general fund balance sheet.
COMPONENT UNITS (BOARD OF EDUCATION AND LIBRARY)
Component Unit - Board of Education - At year-end, the carrying amount of deposits was $17,170,449, including $300,000 in
certificates of deposit and excluding the carrying amount of fiduciary funds. At June 30, 2025, the Board had deposits of
approximately $18.5 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 certificates of deposit, was
$1,551,571 and the balance per bank records totaled $1,713,607. Of the bank balances, $927,792 was secured by the FDIC
and up to $637,830 was available to be secured by collateral held by the pledging bank’s trust department but not in the
Library’s name.
Component Unit – Housing Authority At year-end, the carrying amount of deposits was $1,137,295 and the bank balance
per bank records totaled $1,595,198. At year end, the Housing Authority had $373,567 in bank deposits (checking, money
market, and savings accounts) that were uninsured and uncollateralized.
Total investment income earned in all governmental and business-type funds was credited for use as follows:
Governmental Business-type
Investment Income Activities Activities
Major Governmental Funds
General Fund $ 6,500,117 $ -
General Capital Projects 3 02,634 -
Roads Capital Projects 2 83,982 -
Grants Fund - -
Non-Major Governmental Funds 8 45,533 -
Major Enterprise Funds
Sanitary District - 1 ,815,120
Bay Bridge Airport - 2,357
Non-Major Enterprise Funds - -
Total Investment Income $ 7,932,266 $ 1,817,477
68

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 4 - ACCOUNTS RECEIVABLE
Receivables as of June 30, 2025 for the governmental and business-type activities are as follows:
Total
General Roads Non-Major Total Total Governmental
General Capital Capital Grants Governmental Governmental Enterprise and Enterprise
Accounts Receivable Fund Projects Projects Fund Funds Funds Funds Funds
Receivables
Taxes - Real Property $ 451,012 $ - $ - $ - $ - $ 451,012 $ - $ 451,012
Taxes - Other 705,071 - - - - 705,071 - 705,071
Subtotal Taxes Receivable (Net) 1,156,083 - - - - 1,156,083 - 1,156,083
Other Accounts Receivable:
QAC - PHA - 5 31,258 - - - 531,258 - 531,258
Sanitary District -
User and Septage Fees - - - - - - 691,585 691,585
Airport - Fuel Sales, User
and Rental Fees - - - - - - 34,071 34,071
Miscellaneous Receivables 609,491 8,817 - 103,086 6 7,938 789,332 59,079 848,411
Subtotal Accounts Receivable (Net) 609,491 5 40,075 - 103,086 6 7,938 1,320,590 784,735 2,105,325
Loans Receivable - - - - 6,761,202 6,761,202 - 6,761,202
Special Assessments - - 275,628 - 511,885 787,513 - 787,513
Intergovernmental
Income Taxes Held by State 45,927,229 - - - - 45,927,229 - 45,927,229
Grants Receivable 166,641 8 0,482 - 500,155 1,074,315 1,821,593 267,167 2,088,760
Recordation Tax 1,382,268 - - - - 1,382,268 - 1,382,268
State-Highway User Tax - - - - 426,179 426,179 - 426,179
Subtotal Due from Other Governments 47,476,138 8 0,482 - 500,155 1,500,494 49,557,269 267,167 49,824,436
Restricted Receivables
Accounts Receivable (Net) - - - - - - 2,776,359 2,776,359
Special Assessments Receivable (Net) - - - - - - 19,442,772 19,442,772
Subtotal Restricted Receivables - - - - - - 22,219,131 22,219,131
Total Receivables $ 49,241,712 $ 620,557 $ 275,628 $ 603,241 $ 8,841,519 $ 59,582,657 $ 23,271,033 $ 82,853,690
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 $2.6 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.
69

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 4 - ACCOUNTS RECEIVABLE (CONTINUED)
The County expects to receive all receivables listed in the table within one year, excluding the following items.
Loans receivable in the amount of $6,761,202 relate to the Housing and Community Services, Impact Fees, and Revolving
Loan Special Revenue Funds. Loans receivable in the amount of $6,647,194 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 $75,000 are also repaid over a number of years. The remaining loan receivable balance of $39,008
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 $45,927,229 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 $787,513 represent receivables for governmental activities. Part of this amount consists
of $275,628 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 $511,885 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 $19,442,772 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.
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:
Total
General Roads Non-Major Total Total Governmental
General Capital Capital Grants Governmental Governmental Enterprise and Enterprise
Unearned Revenue Fund Projects Projects Fund Funds Funds Funds Funds
Property Tax Deferrals $ 10,185 $ - $ - $ - $ - $ 1 0,185 $ - $ 10,185
Inspection Fees Collected in Advance - - - - - - 142,595 142,595
Grant Drawdowns in Excess of Expenditures - - - 612,912 643,925 1,256,837 - 1,256,837
Miscellaneous 6,761 - - - - 6,761 9,422 16,183
Total Unearned Revenue $ 16,946 $ - $ - $ 612,912 $ 643,925 $ 1,273,783 $ 152,017 $ 1,425,800
70

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 – CAPITAL ASSETS
PRIMARY GOVERNMENT
Changes in the County’s capital assets for governmental activities for the year ended June 30, 2025 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, 2024 Increases Transfers Decreases June 30, 2025
Capital Assets, not being depreciated/amortized:
Land $ 38,949,464 $ - $ - $ - $ 38,949,464
Intangible Rights - Easements 821,819 - - - 821,819
Land Improvements 4,328,741 15,150 - - 4,343,891
Construction in Progress 2,878,827 1,555,974 (2,235,682) (82,026) 2,117,093
Land - Inexhaustible Infrastructure Improvements 43,890,863 - - - 43,890,863
Total Capital Assets, not being depreciated/amortized 90,869,714 1,571,124 (2,235,682) (82,026) 90,123,130
Capital Assets, being depreciated/amortized:
Buildings and Building Improvements 80,194,497 49,878 1,123,617 - 81,367,992
Improvements other than Buildings 25,235,850 830,874 - - 26,066,724
Vehicles 18,525,120 2,470,893 - (696,543) 20,299,470
Equipment 19,540,006 2,104,447 210,078 (253,172) 21,601,359
Furniture and Fixtures 15,496,620 608,113 - (60,986) 16,043,747
Infrastructure Improvements - Depreciable 18,711,533 67,813 901,987 - 19,681,333
Intangible right to use lease land/facilities 638,500 - - - 638,500
Intangible right to use IT subscription 1,541,069 208,958 - - 1,750,027
Total Capital Assets, being depreciated/amortized 179,883,195 6,340,976 2,235,682 (1,010,701) 187,449,152
Less Accumulated Depreciation/Amortization for:
Buildings and Building Improvements 23,866,005 1,760,938 - - 25,626,943
Improvements other than Buildings 7,396,026 1,253,609 - - 8,649,635
Vehicles 11,348,044 1,965,053 - (629,446) 12,683,651
Equipment 10,554,275 1,333,395 - (225,556) 11,662,114
Furniture and Fixtures 8,306,593 1,687,522 - (60,986) 9,933,129
Infrastructure Improvements - Depreciable 10,757,983 316,432 - - 11,074,415
Intangible right to use lease land/facilities 135,309 67,655 - - 202,964
Intangible right to use IT subscription 635,272 347,961 - - 983,233
Total Accumulated Depreciation/Amortization 72,999,507 8,732,565 - (915,988) 80,816,084
Total Capital Assets, being depreciated/amortized, net 106,883,688 (2,391,589) 2,235,682 (94,713) 106,633,068
Governmental activities Capital Assets, net $ 197,753,402 $ (820,465) $ - $ (176,739) $ 196,756,198
71

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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, 2025 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, 2024 Increases Transfers Decreases June 30, 2025
Capital Assets, not being depreciated/amortized:
Land $ 10,916,330 $ - $ - $ - $ 10,916,330
Land Improvements 9 ,500 - - - 9 ,500
Intangible Rights 6 ,140 - - - 6 ,140
Construction in Progress 6,599,907 3,666,982 (92,692) (2,281,352) 7,892,845
Land - Inexhaustible Infrastructure Improvements 2,481,094 - - - 2,481,094
Total Capital Assets, not being depreciated/amortized 20,012,971 3,666,982 (92,692) (2,281,352) 21,305,909
Capital Assets, being depreciated/amortized:
Buildings and Improvements to Buildings 16,205,773 - - - 16,205,773
Improvements other than Buildings 18,807,369 - - (1,526,408) 17,280,961
Vehicles 2,019,358 510,235 14,534 - 2,544,127
Equipment 25,057,569 268,297 - (80,768) 25,245,098
Furniture and Fixtures 72,375 - - - 72,375
Infrastructure Improvements - Depreciable 154,406,188 2,107,078 92,692 - 156,605,958
Intangible right to use lease equipment 142,746 - - - 142,746
Total Capital Assets, being depreciated/amortized 216,711,378 2,885,610 107,226 (1,607,176) 218,097,038
Less Accumulated Depreciation/Amortization for:
Buildings and Improvements to Buildings 11,236,690 273,827 - - 11,510,517
Improvements other than Buildings 8,959,580 674,726 - (1,526,408) 8,107,898
Vehicles 1,610,017 157,223 14,534 - 1,781,774
Equipment 17,400,680 535,862 - (80,768) 17,855,774
Furniture and Fixtures 36,002 6 ,786 - - 42,788
Infrastructure Improvements - Depreciable 47,579,312 3,121,629 - - 50,700,941
Intangible right to use lease equipment 33,306 28,550 - - 61,856
Total Accumulated Depreciation/Amortization 86,855,587 4,798,603 14,534 (1,607,176) 90,061,548
Total Capital Assets, being depreciated/amortized, net 129,855,791 (1,912,993) 92,692 - 128,035,490
Business-Type activities Capital Assets, net $ 149,868,762 $ 1,753,989 $ - $ ( 2,281,352) $ 149,341,399
72

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 – CAPITAL ASSETS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Business-type
Activities Activities
General Government $ 1,516,654 $ -
Public Safety 3,201,525 -
Public Works 1,757,807 -
Parks & Recreation 1,439,897 -
Health and Social Services 369,136 -
Education and Library 249,570 -
Conservation of Natural Resources 113,876 -
Economic/Community Development 84,100 -
Major Enterprise Funds:
Sanitary District - 3 ,910,656
Bay Bridge Airport - 6 56,261
Non-Major Enterprise Funds - 2 31,686
Total amounts restricted $ 8,732,565 $ 4,798,603
73

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS
Board of Education: Capital asset activity for the year ended June 30, 2025 is as follows:
Balance Balance
Board of Education June 30, 2024 Increases Transfers Decreases June 30, 2025
Capital Assets, not being depreciated/amortized:
Land $ 6,363,040 $ - $ - $ - $ 6,363,040
Construction in Progress 10,124,077 19,618,538 (1,495,985) - 28,246,630
Total Capital Assets, not being depreciated/amortized 16,487,117 19,618,538 (1,495,985) - 34,609,670
Capital Assets, being depreciated/amortized:
Land Improvements 5,398,921 861,863 1,094,404 (247,589) 7,107,599
Buildings 222,833,411 484,387 - (83,225) 223,234,573
Furniture, Fixtures, and Equipment 22,133,658 745,416 401,581 (370,667) 22,909,988
Leased Equipment 2,042,919 515,011 - - 2,557,930
Total Capital Assets, being depreciated/amortized 252,408,909 2,606,677 1,495,985 (701,481) 255,810,090
Less Accumulated Depreciation/Amortization for:
Land Improvements 5,110,061 58,798 - (245,526) 4,923,333
Buildings 85,363,426 4,491,793 - (54,790) 89,800,429
Furniture, Fixtures, and Equipment 15,867,466 1,510,308 - (352,735) 17,025,039
Leased Equipment 579,359 619,033 - - 1,198,392
Total Accumulated Depreciation/Amortization 106,920,312 6,679,932 - (653,051) 112,947,193
Total Capital Assets, being depreciated/amortized, net 145,488,597 (4,073,255) 1,495,985 (48,430) 142,862,897
Capital Assets, net $ 161,975,714 $ 15,545,283 $ - $ (48,430) $ 177,472,567
74

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS (CONTINUED)
Queen Anne’s County Free Library: Capital asset activity for the year ended June 30, 2025 is as follows:
Balance Balance
Library June 30, 2024 Increases Transfers Decreases June 30, 2025
Capital Assets, not being depreciated/amortized:
Artwork $ 29,850 $ - $ - $ - $ 29,850
Total Capital Assets, not being depreciated/amortized 29,850 - - - 29,850
Capital Assets, being depreciated/amortized:
Books and Media 1,901,143 195,739 - (204,994) 1,891,888
Building Improvements 402,207 33,500 - - 435,707
Equipment 634,358 - - (23,597) 610,761
Right-to-use - Equipment 27,018 29,043 - (27,018) 29,043
Total Capital Assets, being depreciated/amortized 2,964,726 258,282 - (255,609) 2,967,399
Less Accumulated Depreciation/Amortization 1,275,065 241,375 - (222,811) 1,293,629
Total Capital Assets, being depreciated/amortized, net 1,689,661 16,907 - (32,798) 1,673,770
Capital Assets, net $ 1,719,511 $ 16,907 $ - $ (32,798) $ 1,703,620
Queen Anne’s County Housing Authority: Capital asset activity for the year ended June 30, 2025 is as follows:
Balance Balance
Housing Authority June 30, 2024 Increases Transfers Decreases June 30, 2025
Capital Assets, not being depreciated/amortized:
Land $ 1,101,448 $ - $ - $ - $ 1,101,448
Total Capital Assets, not being depreciated/amortized 1,101,448 - - - 1,101,448
Capital Assets, being depreciated/amortized:
Buildings 22,429,007 567,370 - (300,000) 22,696,377
Furniture, Equipment and Machinery:
Dwellings 299,984 18,700 - (21,855) 296,829
Administration 245,122 - - (57,232) 187,890
Total Capital Assets, being depreciated/amortized 22,974,113 586,070 - (379,087) 23,181,096
Less Accumulated Depreciation/Amortization 10,145,376 495,827 - (160,595) 10,480,608
Total Capital Assets, being depreciated/amortized, net 12,828,737 90,243 - (218,492) 12,700,488
Capital Assets, net $ 13,930,185 $ 90,243 $ - $ (218,492) $ 13,801,936
75

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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.
The interfund and intra-entity receivables and payables consist of the following at June 30, 2025:
Due from Fund
Non- Bay Non- Total
Due to Fund General Capital Roads Grants Major Sanitary Bridge Major Due
Fund Projects Capital Fund Governmental District Airport Enterprise From
General Fund $ 281,073 $ - $ - $ - $ - $ 59,184 $ - $ - $ 221,889 $ 281,073
General Capital Projects 813,658 - - - - - - 813,658 - 813,658
Roads Capital - - - - - - - - - -
Grants Fund - - - - - - - - - -
Non-Major Governmental - - - - - - - - - -
Sanitary District - - - - - - - - - -
Bay Bridge Airport - - - - - - - - - -
Non-Major Enterprise - - - - - - - - - -
Total Due To Fund $ 1,094,731 $ - $ - $ - $ - $ 59,184 $ - $ 813,658 $ 221,889 $ 1,094,731
Interfund receivables and payables are reported on the Statement of Net Position as Internal Balances, net of transactions
between the same types of funds.
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 and Public Landings Funds for capital projects. The transfers
from non-major governmental funds provide funding from the Impact Fee Funds to the General Fund. 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, 2025:
Transfers In
Non- Bay Non- Total
Transfers Out General Capital Roads Grants Major Sanitary Bridge Major Transfers
Fund Projects Capital Fund Governmental District Airport Enterprise In
General Fund $ 2 1,475,549 $ - $ 7,117,445 $ 5 ,214,061 $ 32,000 $ 9,012,769 $ 68,911 $ 25,796 $ 4,567 $ 21,475,549
General Capital Projects - - - - - - - - - -
Roads Capital - - - - - - - - - -
Grants Fund - - - - - - - - - -
Non-Major Governmental 2,186,952 2,167,290 - - - - 19,662 - - 2,186,952
Sanitary District 6,083,768 - - - - - 6,083,768 - - 6,083,768
Bay Bridge Airport - - - - - - - - - -
Non-Major Enterprise - - - - - - - - - -
Total Transfers Out $ 2 9,746,269 $ 2,167,290 $ 7,117,445 $ 5 ,214,061 $ 32,000 $ 9,012,769 $ 6,172,341 $ 25,796 $ 4,567 $ 29,746,269
Reconciliation of interfund transfers to the Statement of Activities
Governmental Funds Transfers In $ 23,543,565 Enterprise Funds Transfers In $ 6 ,202,704
Governmental Funds Transfers Out (23,662,501) Enterprise Funds Transfers Out (6,083,768)
Total Governmental Activities $ (118,936) Total Business-Type Activities $ 118,936
76

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 9 - NONCURRENT LIABILITIES
A. CHANGES IN NONCURRENT LIABILITIES
During the year ended June 30, 2025, 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, 2024 of debt Repayments June 30, 2025 One Year One Year
General Bonds Payable $ 109,864,531 $ - $ 8,773,920 $ 101,090,611 $ 9,128,634 $ 9 1,961,977
General Bonds Payable - Related to PHA 3 76,513 - 69,774 306,739 72,885 233,854
General Bonds Payable - Related to Ches College 2,858,777 - 2 37,964 2,620,813 247,611 2,373,202
Notes Payable 5 60,325 - 47,816 512,509 47,816 464,693
Bond Premiums 9,561,311 - 8 72,737 8,688,574 872,744 7,815,830
Subtotal Governmental Activities Debt 123,221,457 - 10,002,211 1 13,219,246 10,369,690 1 02,849,556
Lease Liability 5 52,354 - 55,401 496,953 58,224 438,729
Subscription Liability 9 05,835 208,958 3 89,476 725,317 364,534 360,783
OPEB 24,652,577 - 5 ,433,472 1 9,219,105 - 1 9,219,105
Net Pension Liability 41,722,251 13,875,446 - 5 5,597,697 - 5 5,597,697
LOSAP Liability 11,180,243 - 82,023 1 1,098,220 472,350 1 0,625,870
Compensated Absences 4,148,535 174,848 - 4,323,383 2,935,713 1,387,670
Total Governmental Activities Debt $ 206,383,252 $ 14,259,252 $ 15,962,583 $ 204,679,921 $ 1 4,200,511 $ 190,479,410
The change in the compensated absences liability is presented as a net change in the chart above.
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 $ 8,773,920
General Bonds Payable - PHA 6 9,774
Payments made by PHA (201,863)
Notes Payable 4 7,816
Total Principal Payments $ 8,689,647
77

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2025, 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, 2024 of debt Repayments June 30, 2025 One Year One Year
Golf Course $ 7 5,485 $ - $ 4,674 $ 70,811 $ 4,894 $ 65,917
Bay Bridge Airport 1,247,076 - 1 12,595 1,134,481 116,878 1,017,603
Public Landings and Marinas 5 57,620 - 66,074 491,546 69,098 422,448
Sanitary District 34,997,931 7,427,240 2 ,137,804 4 0,287,367 2,156,871 3 8,130,496
Subtotal Debt 36,878,112 7,427,240 2 ,321,147 4 1,984,205 2,347,741 3 9,636,464
Bond Premiums
Golf Course 4,714 - 362 4,352 362 3,990
Bay Bridge Airport 6 0,654 - 7,485 53,169 7,485 45,684
Public Landings and Marinas 6 5,978 - 9,766 56,212 9,766 46,446
Subtotal Bond Premiums 1 31,346 - 17,613 113,733 17,613 96,120
Subtotal Business-Type Activities Debt 37,009,458 7,427,240 2 ,338,760 4 2,097,938 2,365,354 3 9,732,584
Lease Liability 1 10,714 - 27,922 82,792 28,590 54,202
OPEB 5,590,368 - 6 52,362 4,938,006 - 4,938,006
Net Pension Liability 3,436,786 353,608 - 3,790,394 - 3,790,394
Compensated Absences 5 96,108 412,368 3 51,424 657,052 394,232 262,820
Total Business-Type Activities Debt $ 46,743,434 $ 8,193,216 $ 3,370,468 $ 5 1,566,182 $ 2,788,176 $ 4 8,778,006
During the year ended June 30, 2025, the following changes occurred in the noncurrent liabilities of the primary
government’s Component Units:
COMPONENT UNITS
Retirements Due in
Board of Education, Free Library, Balance Additions and Balance Due Within More than
and Housing Authority June 30, 2024 of debt Repayments June 30, 2025 One Year One Year
Board of Education
Compensated Absences $ 1,306,083 $ 123,076 $ - $ 1 ,429,159 $ - $ 1 ,429,159
Financed Purchases 1,170,875 - 2 53,758 917,117 269,034 648,083
Intangible Right-to-Use Leases 1,493,905 515,011 6 04,426 1,404,490 595,597 808,893
OPEB 140,819,860 4,457,564 - 1 45,277,424 - 1 45,277,424
Net Pension Liability 6,898,132 1,651,968 - 8,550,100 - 8,550,100
Subtotal 151,688,855 6,747,619 8 58,184 1 57,578,290 864,631 1 56,713,659
Free Library
Lease Payable 2,602 29,043 5,230 26,415 5,429 20,986
OPEB 5 20,386 - 30,999 489,387 - 489,387
Subtotal 5 22,988 29,043 36,229 515,802 5,429 510,373
Housing Authority
Long-term Debt 1,321,443 - 2 57,916 1,063,527 335,839 727,688
Compensated Absences 1 6,125 20,207 1,766 34,566 24,954 9,612
Subtotal 1,337,568 20,207 2 59,682 1,098,093 360,793 737,300
Total Component Units Debt $ 153,549,411 $ 6,796,869 $ 1,154,095 $ 159,192,185 $ 1,230,853 $ 157,961,332
Long-term liabilities are normally paid from the General fund.
78

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, LEASE LIABILITY, SUBSCRIPTION LIABILITY, OTHER
POST-EMPLOYMENT BENEFIT OBLIGATION, NET PENSION LIABILITY, VOLUNTEER FIREMAN
PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM 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 17.
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, OPEB is reported in the government-wide statements in the function in which that employee usually
charges their productive time. For enterprise funds, OPEB is reported in the enterprise fund in which that employee charges
the majority of their productive time. OPEB costs in governmental funds are charged to the General Fund. Additional
information can be found in Note 16, 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 14, 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.
79

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, LEASE LIABILITY, SUBSCRIPTION LIABILITY, OTHER
POST-EMPLOYMENT BENEFIT OBLIGATION, NET PENSION LIABILITY, VOLUNTEER FIREMAN
PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM LIABILITY, AND COMPENSATED ABSENCES
(CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
As of June 30, 2025, general obligation bonds and notes payable for governmental activities are comprised of the following,
along with lease liability, subscription liability, other post-employment benefit obligation, net pension liability, volunteer
fireman pension plan length of service award program liability and compensated absences:
Year Amount Outstanding Due in
Paying Interest Series of Original June 30, Due Within More than
Governmental Activities Fund Rate Matures Issue 2025 One Year One Year
General Obligation Bonds Payable
2014 Public Facilities General 2.00%-4.00% 2034 $ 17,590,000 $ 9,058,183 $ 855,804 $ 8,202,379
2015 Public Facilities General 3.00%-5.00% 2036 11,622,756 7 ,435,065 547,251 6 ,887,814
2015 Refunding Bonds General 2.00%-5.00% 2027 13,521,625 3 ,128,571 1,540,070 1 ,588,501
2016 Public Facilities General 2.00%-4.00% 2036 13,934,364 9 ,624,189 665,106 8 ,959,083
2017 Public Facilities General 3.00%-5.00% 2037 12,600,000 9 ,405,000 555,000 8 ,850,000
2018 Public Facilities General 3.00%-5.00% 2038 16,000,000 12,625,000 665,000 11,960,000
2019 Public Facilities General 3.00%-5.00% 2039 11,000,000 9 ,100,000 440,000 8 ,660,000
2019 Refunding Bonds General 4.00%-5.00% 2029 14,236,594 8 ,025,280 1,454,903 6 ,570,377
2020 Public Facilities General 2.00%-5.00% 2040 9,000,000 7 ,743,431 349,028 7 ,394,403
2021 Public Facilities General 1.50%-5.00% 2041 13,000,000 10,862,391 638,964 10,223,427
2021 Refunding Bonds General 1.50%-5.00% 2030 10,835,995 7 ,063,500 1,027,508 6 ,035,992
2022 Public Facilities General 3.375%-5.00% 2043 7,800,000 7 ,020,000 390,000 6 ,630,000
2015 Refunding Facilities (2006 Bonds) Due from PHA 2.00%-3.00% 2027 240,112 55,556 27,348 28,208
2019 Refunding Facilities (2009 Bonds) Due from PHA 4.00%-5.00% 2029 445,590 2 51,183 45,537 2 05,646
2014 Public Facilities Due from other Counties 2.00%-4.00% 2034 4,800,000 2 ,620,814 247,611 2 ,373,203
Subtotal Bonds Payable 104,018,163 9,449,130 94,569,033
Notes Payable
State of Maryland - Grove Ck. Spec. Rev. 0.00% 2034 510,617 1 83,817 20,425 1 63,392
State of Maryland - Narrows Pointe Spec. Rev. 0.00% 2037 525,318 3 28,692 27,391 3 01,301
Subtotal Notes Payable 5 12,509 4 7,816 4 64,693
Subtotal Bonds and Notes Payable 104,530,672 9,496,946 95,033,726
Bond Premiums 8 ,688,574 872,744 7 ,815,830
Subtotal Governmental Activities Debt 113,219,246 10,369,690 102,849,556
Lease Liability 4 96,953 58,224 4 38,729
Subscription Liability 7 25,317 364,534 3 60,783
OPEB 19,219,105 - 19,219,105
Net Pension Liability 55,597,697 - 55,597,697
LOSAP Liability 11,098,220 472,350 10,625,870
Compensated Absences 4 ,323,383 2,935,713 1 ,387,670
Total Governmental Activities $ 204,679,921 $ 1 4,200,511 $ 190,479,410
80

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, LEASE LIABILITY, SUBSCRIPTION LIABILITY, OTHER
POST-EMPLOYMENT BENEFIT OBLIGATION, NET PENSION LIABILITY, VOLUNTEER FIREMAN
PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM LIABILITY, AND COMPENSATED ABSENCES
(CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize general obligation bonds and notes payable outstanding as of June 30, 2025 for
governmental activities are as follows:
Governmental Activities
Year Ending Governmental Bonds Payable Governmental Notes Payable
June 30, Principal Interest Total Principal Interest Total
2026 $ 9 ,449,130 $ 3,627,820 $ 13,076,950 $ 47,816 $ - $ 47,816
2027 9,836,235 3,229,929 1 3,066,164 47,816 - 47,816
2028 8,547,051 2,815,797 1 1,362,848 47,816 - 47,816
2029 8,884,716 2,448,449 1 1,333,165 47,816 - 47,816
2030 9,232,358 2,076,222 1 1,308,580 47,816 - 47,816
2031 - 2035 3 3,753,387 6,263,923 4 0,017,310 218,647 - 218,647
2036 - 2040 2 1,254,065 1,696,103 2 2,950,168 54,782 - 54,782
2041 - 2045 3,061,221 99,490 3 ,160,711 - - -
$ 104,018,163 $ 22,257,733 $ 126,275,896 $ 512,509 $ - $ 512,509
81

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, LEASE LIABILITY, SUBSCRIPTION LIABILITY, OTHER
POST-EMPLOYMENT BENEFIT OBLIGATION, NET PENSION LIABILITY, VOLUNTEER FIREMAN
PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM LIABILITY, AND COMPENSATED ABSENCES
(CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
General obligation bonds and notes payable outstanding as of June 30, 2025 for business-type activities are comprised of the
following, as well as lease liability, other post-employment benefit obligation, net pension liability, and compensated
absences:
Year Amount Outstanding Due in
Interest Series of Original June 30, Due Within More than
Business -Type Activities Rate Matures Issue 2025 One Year One Year
Golf Course
2016 Public Facilities Bonds 2.00%-4.00% 2036 $ 85,636 $ 70,811 $ 4,894 $ 65,917
Bond Premiums 4,352 362 3,990
Subtotal Golf Course 75,163 5,256 69,907
Bay Bridge Airport
2014 Public Facilities Bonds 2.00%-4.00% 2034 964,940 546,002 51,584 494,418
2015 Public Facilities Bonds 3.00%-5.00% 2036 577,244 444,935 32,749 412,186
2015 Refunding Bonds 2.00%-5.00% 2027 173,556 40,157 19,768 20,389
2019 Refunding Bonds 4.00%-5.00% 2029 92,167 51,955 9,419 42,536
2020 Public Facilities Bonds 2.00%-5.00% 2040 22,686 21,569 972 20,597
2021 Public Facilities Bonds 1.50%-5.00% 2041 26,594 22,605 1,330 21,275
2021 Refunding Bonds 1.50%-5.00% 2030 11,134 7,258 1,056 6,202
Bond Premiums 53,169 7,485 45,684
Subtotal Airport 1,187,650 124,363 1,063,287
Public Landings and Marinas
2015 Refunding Bonds 2.00%-5.00% 2027 24,707 5,717 2,814 2,903
2019 Refunding Bonds 4.00%-5.00% 2029 490,649 276,582 50,142 226,440
2021 Refunding Bonds 1.50%-5.00% 2030 67,871 44,242 6,436 37,806
2021 Public Facilities Bonds 1.50%-5.00% 2043 194,123 165,005 9,706 155,299
Bond Premiums 56,212 9,766 46,446
Subtotal Public Landings and Marinas 547,758 78,864 468,894
Sanitary District
Maryland Water Quality-2005 Enhancement 1.00% 2027 1 8,252,291 1,978,204 991,527 986,677
Maryland Water Quality-SKI Phase One 0.80% 2049 2 9,342,242 25,515,611 975,867 24,539,744
Maryland Water Quality-SKI Phase Two 0.80% 2053 5 ,740,767 5,366,312 189,477 5,176,835
Maryland Water Quality-SKI Phase Three 0.90% 2056 7 ,427,240 7,427,240 - 7,427,240
Subtotal Sanitary District 40,287,367 2 ,156,871 38,130,496
Total Business-Type Activities Debt 42,097,938 2 ,365,354 39,732,584
Lease Liability 82,792 28,590 54,202
OPEB 4,938,006 - 4,938,006
Net Pension Liability 3,790,394 - 3,790,394
Compensated Absences 657,052 394,232 262,820
Total Business-Type Activities $ 5 1,566,182 $ 2 ,788,176 $ 4 8,778,006
82

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, LEASE LIABILITY, SUBSCRIPTION LIABILITY, OTHER
POST-EMPLOYMENT BENEFIT OBLIGATION, NET PENSION LIABILITY, VOLUNTEER FIREMAN
PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM LIABILITY, AND COMPENSATED ABSENCES
(CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize business-type bonds and notes outstanding at June 30, 2025, are as follows:
Business-Type Activities
Year Ending Business-Type Bonds Payable Business-Type Notes Payable
June 30, Principal Interest Total Principal Interest Total
2026 $ 190,870 $ 60,325 $ 2 51,195 $ 2 ,156,871 $ 356,062 $ 2 ,512,933
2027 198,765 52,916 251,681 2,512,439 400,509 2,912,948
2028 182,949 44,698 227,647 1,538,318 378,057 1,916,375
2029 190,284 37,196 227,480 1,550,980 365,368 1,916,348
2030 197,642 29,729 227,371 1,563,745 352,573 1,916,318
2031 - 2035 586,613 71,036 657,649 8,013,921 1,567,227 9,581,148
2036 - 2040 125,935 6,856 132,791 8,349,230 1,164,309 9,513,539
2041 - 2045 23,780 4 61 24,241 8,698,606 680,442 9,379,048
2046 - 2050 - - - 5,757,776 209,176 5,966,952
2051 - 2055 - - - 145,481 1 ,166 146,647
$ 1 ,696,838 $ 303,217 $ 2 ,000,055 $ 4 0,287,367 $ 5,474,889 $ 4 5,762,256
C. ISSUANCE OF NEW DEBT
PRIMARY GOVERNMENT
In fiscal year 2025, the County began borrowing funds through the Maryland Water Quality Financing Administration for
phase three of the Southern Kent Island (SKI) Sanitary Project. The total loan amount for phase three will be approximately
$12.0 million and funds will be disbursed as the project costs are incurred. Principal payments will begin after the final draw
and the loan will be repaid over 30 years at an interest rate of 0.90%. In fiscal year 2025, the County received $7,427,240 as
part of this loan. The total amount outstanding as of June 30, 2025, was $7,427,240.
83

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
D. LOCAL DEBT POLICY
PRIMARY GOVERNMENT
In May 2013, Queen Anne’s County adopted Resolution No. 13-04, which updated and replaced Resolution No. 09-13, to
continue a local debt policy in compliance with Article 95, Section 22F of the Annotated Code of Maryland. This policy
requires that the County’s Director of Budget and Finance: (1) prepare a six-year capital project plan each year; (2) propose
an amount to be transferred from the General Fund operating balances to the General Capital Projects Fund to serve as pay-
as-you-go funding in the latter Fund, in order to lessen the need for future County debt; (3) limit the County’s non-bonded
indebtedness to $8.0 million for general operating expenses or capital improvements; 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.
NOTE 10 – LEASES
PRIMARY GOVERNMENT
The County implemented guidance of GASB 87, Leases, at July 1, 2021 for accounting and reporting of leases. The County
uses its incremental borrowing rate to determine the initial value of the lease receivable and corresponding deferred inflows.
County as Lessor
The County’s Governmental Activities entered into various lease agreements to lease land for cultivation and other similar
purposes. The County received a combination of semi-annual and monthly payments from these leases ranging from $5,895
to $17,225 during the year. These leases typically have variable payments that increase each year or each successive
renewable lease term by a set percentage rate included in the lease agreement. The County has options to extend which
typically are in five-year increments. The County has considered the probability of exercising the lease renewal options in
the initial calculation of the lease.
The following is a summary of Governmental Activities lease receivable and the corresponding deferred inflow:
Retirements
Balance and Balance
Governmental Activities June 30, 2024 Additions Repayments June 30, 2025
Lease Receivable $ 957,290 $ - $ 150,495 $ 8 06,795
Lease Receivable deferred inflows $ (921,365) $ - $ (146,909) $ (774,456)
For the year ended June 30, 2025, rental and interest income associated with the governmental activities lease receivable was
approximately $147,000 and $1,800, respectively.
84

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 10 – LEASES (CONTINUED)
The County’s Sanitary District has entered into various lease agreements to lease land near County water towers for antenna
sites. The County received monthly payments from these leases ranging from $290 to $3,390 during the year. These leases
typically have variable payments that increase each year by a set percentage rate included in the lease agreement. The
County has options to extend which typically are in five-year increments. The County has considered the probability of
exercising the lease renewal options in the initial calculation of the lease.
The County’s Bay Bridge Airport has entered into various lease agreements to lease land and/or facilities at the airport. The
County received monthly payments from these leases ranging from $489 to $5,732 during the year. These leases typically
have variable payments that increase each year by a set percentage rate included in the lease agreement. The County has
options to extend which typically are in one-year increments. The County has considered the probability of exercising the
lease renewal options in the initial calculation of the lease.
The following is a summary of Business-Type activities lease receivable and the corresponding deferred inflow:
Retirements
Balance and Balance
Business-Type Activities June 30, 2024 Additions Repayments June 30, 2025
Sanitary District - Lease Receivable $ 1,419,931 $ - $ 127,574 $ 1,292,357
Bay Bridge Airport - Lease Receivable 429,779 - 86,232 3 43,547
Total lease receivable $ 1,849,710 $ - $ 213,806 $ 1,635,904
Sanitary District - Deferred inflows $ (1,388,119) $ - $ (140,118) $ (1,248,001)
Bay Bridge Airport - Deferred inflows (430,080) - ( 87,407) (342,673)
Total lease receivable deferred inflows $ (1,818,199) $ - $ (227,525) $ (1,590,674)
For the year ended June 30, 2025, rental and interest income associated with the business-type activities lease receivable was
approximately $227,500 and $5,000, respectively.
County as Lessee
The County has entered into various agreements to lease land and facilities for their public works department. There were no
new lease liabilities recognized within these funds that fell under the purview of GASB 87 during fiscal year 2025. The
County is required to make both fixed and variable payments that range from $9,000 to $62,424 for the current year. Leases
for which have variable payments will increase at a rate of 2% each year until lease termination. The County has no
extension or termination options present in these agreements.
The County has entered into an agreement to lease equipment for their enterprise funds. There were no new lease liabilities
recognized within these funds that fell under the purview of GASB 87 during fiscal year 2025. The County is required to
make annual fixed payments of $2,520 for leases in the scope of GASB 87. The County has no extension or termination
options present in this agreement.
85

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 10 – LEASES (CONTINUED)
The future minimum lease payments are approximately as follows:
Governmental Activities Business-Type Activities
Principal Interest Total Principal Interest Total
2026 $ 58,224 $ 14,448 $ 7 2,672 $ 28,590 $ 1,650 $ 30,240
2027 61,154 12,792 73,946 29,274 966 30,240
2028 55,193 11,052 66,245 24,928 271 25,199
2029 58,134 9,436 67,570 - - -
2030 61,187 7,735 68,922 - - -
Thereafter 203,061 12,083 2 15,144 - - -
Total $ 496,953 $ 67,546 $ 5 64,499 $ 82,792 $ 2,887 $ 85,679
For the year ended June 30, 2025, interest expense for governmental and business-type activities lease liability was $16,023
and $2,318, respectively.
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 for 25 years.
COMPONENT UNITS
BOARD OF EDUCATION
Financed Purchases
The Board has entered into non-cancelable contracts to finance performance contracting equipment that transfer ownership at
the end of the contract term, January 2028. The amount due on the contract at June 30, 2025 is $714,142. During 2024, the
Board entered into an agreement to finance the purchase of two school buses. The agreement requires payments through
September 2033. The amount due on the agreement at June 30, 2025 is $202,975. As such, the Board has recorded the
related obligations and the related assets in the appropriate funds.
The assets acquired and capitalized as fixed assets under financed purchases are as follows:
Equipment, at cost $ 2,845,938
Less: accumulated depreciation (2,134,253)
Total $ 711,685
Interest expense related to the above finance purchases was approximately $34,000 for the year ended June 30, 2025. The
future minimum lease obligations and net present value of these minimum lease payments as of June 30, 2025 were as
follows:
Year ended June 30:
2026 $ 295,613
2027 303,602
2028 232,892
2029 29,339
2030 29,339
Thereafter 102,684
Total minimum lease payments 993,469
Less: amount representing interest (76,352)
Present value of minimum financed purchase payments $ 917,117
86

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 10 – LEASES (CONTINUED)
Intangible Right-to-Use Assets
The Board implemented the guidance of GASB No. 87, Leases, at July 1, 2021 for accounting and reporting leases that
had previously been reporting as operating leases and recognized the value of copiers leased under long-term contracts
along with a related liability.
During fiscal year 2023, the Board entered into copier lease agreements. Payments under these leases total approximately
$65,000 per year for leases that expire in fiscal year 2027 and $31,000 per year for leases expiring in fiscal year 2025.
For purposes of discounting future payments on these leases the Board used its incremental borrowing rate in place at the
time of lease inception of 3.75%.
During fiscal year 2024, the Board entered into additional lease agreements for office equipment and vehicles. Payments
under these leases total approximately $390,000 per year for leases that expire in fiscal year 2027 and $52,000 per year
for leases expiring in fiscal year 2028. For purposes of discounting future payments on these leases the Board used its
incremental borrowing rate in place at the time of lease inception of 3.75%.
During fiscal year 2025, the Board entered into additional lease agreements for office equipment. Payments under these
leases total approximately $6,000 per year for leases that expire in fiscal year 2029 and $132,000 per year for leases
expiring in fiscal year 2028. For purposes of discounting future payments on these leases the Board used its incremental
borrowing rate in place at the time of lease inception of 3.75%.
The leased equipment and accumulated amortization of the right-to-use assets are outlined in Note 6.
Minimum lease payments on equipment and vehicles over the next five years are as follows:
Lease Payments to Maturity
Equipment and Vehicles
Principal Interest Total
2026 $ 595,597 $ 52,669 $ 6 48,266
2027 617,931 30,334 648,265
2028 184,369 7,161 191,530
2029 6,593 247 6,840
2030 - - -
$ 1,404,490 $ 90,411 $ 1 ,494,901
87

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 10 – LEASES (CONTINUED)
LIBRARY
Leases Payable
In December 2024, the Library entered into an operating lease with Delmarva Document Solutions for use of a photocopier
with an expiration date of December 2029. As of June 30, 2025, total lease liabilities were $26,415, which represents the
present value of the remaining lease payments of $540, discounted using the Library’s incremental borrowing rate of 4.38%.
Following is the principal and interest requirements through maturity of the lease liability under this non-cancelable operating
lease:
Year ended June 30: Principal Interest
2026 $ 5,429 $ 1,049
2027 5,672 806
2028 5,925 553
2029 6,190 288
2030 3,199 41
$ 26,415 $ 2,737
NOTE 11 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS
The County implemented guidance of GASB 96, Subscription-Based Information Technology Arrangements (SBITAs)
for accounting and reporting of subscription arrangements. The County uses its incremental borrowing rate to determine
the initial value of their right-to-use subscription assets and liabilities.
The County enters into various agreements in order to use web software and licensing services. An initial subscription
liability was recorded in the amount of $208,958 for all new subscription arrangements entered into in the current year.
As of June 30, 2025, the value of the subscription liability is $725,317. The County is required to make annual fixed
payments ranging from $10,250 to $298,043 for subscriptions in the scope of GASB 96. The County has options to
extend which typically are in one-year increments. The County has considered the probability of exercising the lease
renewal options in the initial calculation of the subscription.
The future minimum subscription payments are as follows:
Governmental Activities
Principal Interest Total
2026 $ 364,534 $ 18,393 $ 382,927
2027 360,783 9,143 369,926
2028 - - -
2029 - - -
2030 - - -
Thereafter - - -
Total $ 725,317 $ 27,536 $ 752,853
For the year ended June 30, 2025, interest expense related to the subscription liability was $15,483.
88

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 12 – 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, 2025 are as follows:
SANITARY DISTRICT
RESTRICTED DEBT SERVICE
ASSETS FUND FUND TOTAL
Current Restricted Assets
Restricted Equity in Pooled Cash $ 26,485,159 $ 2,160,833 $ 28,645,992
Restricted Accounts Receivable (Net) 2,443,237 333,122 2,776,359
Total Current Restricted Assets 28,928,396 2,493,955 31,422,351
Noncurrent Restricted Assets
Special Assessments Receivable (Net) 1,057,806 18,384,966 19,442,772
Total Noncurrent Restricted Assets 1,057,806 18,384,966 19,442,772
LIABILITIES
Current Restricted Liabilities
Accounts Payable 9 2,212 - 9 2,212
Total Current Restricted Liabilities 9 2,212 - 9 2,212
DEFERRED INFLOWS OF RESOURCES
Unavailable Water and Sewer Assessments 1,057,990 18,414,337 19,472,327
Total Deferred Inflows of Resources 1,057,990 18,414,337 19,472,327
NET POSITION
Amounts Restricted for:
Debt Service - 2,464,584 2,464,584
Unrestricted Amounts 28,836,000 - 28,836,000
Total Net Position $ 28,836,000 $ 2,464,584 $ 31,300,584
89

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 12 – 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
ASSETS ACTIVITIES
Capital Assets $ 277,572,282
Less Accumulated Depreciation (80,816,084)
Total Capital Assets, Net of Depreciation 196,756,198
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 1 63,681
Total Deferred Outflows of Resources 1 63,681
LIABILITIES
Lease Payable 4 96,953
Subscription Payable 7 25,317
Capital Retainage Payable 24,491
Capital Accounts Payable 7 42,863
Bonds/Notes Payable 113,219,246
Less:
Debt relating to Board of Education Assets (38,823,947)
Unspent portion of Bond Proceeds for Board of Education debt (566,525)
Unspent portion of Bond Proceeds for Governmental debt (2,299,997)
Debt relating to Chesapeake College (4,010,696)
Debt relating to PHA (306,739)
Debt relating to non-capital assets (Dredging) (512,509)
Total Liabilities 68,688,457
DEFERRED INFLOWS OF RESOURCES
Bond Refundings 1 15,500
Total Deferred Inflows of Resources 1 15,500
NET POSITION
Net Investment in Capital Assets $ 128,115,922
BUSINESS-TYPE ACTIVITIES
Net Investment in Capital Assets for business-type activities, are as follows:
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
SEWER WATER BAY BRIDGE ENTERPRISE ENTERPRISE
ASSETS OPERATIONS OPERATIONS TOTAL AIRPORT FUNDS FUNDS
Capital Assets $ 158,267,408 $ 4 1,672,883 $ 199,940,291 $ 2 7,931,875 $ 1 1,530,781 $ 239,402,947
Less Accumulated Depreciation (65,018,180) (15,627,592) (80,645,772) ( 6,470,774) ( 2,945,002) (90,061,548)
Total Capital Assets, Net of Depreciation 93,249,228 26,045,291 119,294,519 21,461,101 8,585,779 1 49,341,399
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding - - - 2,064 294 2,358
Total Deferred Outflows of Resources - - - 2,064 294 2,358
LIABILITIES
Lease Payable - - - - 82,792 82,792
Capital Retainage Payable 4 08,989 - 4 08,989 50,000 - 458,989
Capital Accounts Payable 3 97,550 - 3 97,550 2,326 - 399,876
Bonds/Notes Payable 40,287,367 - 40,287,367 1,187,650 622,921 4 2,097,938
Total Liabilities 41,093,906 - 41,093,906 1,239,976 705,713 4 3,039,595
DEFERRED INFLOWS OF RESOURCES
Bond Refundings - - - 210 1,115 1,325
Total Deferred Inflows of Resources - - - 210 1,115 1,325
NET POSITION
Net Investment in Capital Assets $ 52,155,322 $ 2 6,045,291 $ 78,200,613 $ 2 0,222,979 $ 7,879,245 $ 106,302,837
90

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 12 – 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 Grants Non-Major Governmental
Governmental Funds Fund Capital Capital Fund Governmental Funds
Nonspendable
Inventory $ - $ - $ - $ - $ 1,223,652 $ 1,223,652
Prepaid Items 1,003,872 - - - - 1,003,872
Other 32,338 - - - - 32,338
Subtotal Nonspendable 1,036,210 - - - 1,223,652 2,259,862
Restricted
Rainy Day Fund 16,551,869 - - - - 16,551,869
Employee Benefits - LOSAP 7,034,737 - - - - 7,034,737
Mosquito Control 52,241 - - - - 52,241
Unspent Bond Proceeds - 2,866,522 - - - 2,866,522
Impact Fees - 165,362 - - - 165,362
Vehicle Acquisition - 80,905 - - - 80,905
Department of Aging - - - - 9 55 9 55
House and Community Services - - - - 2,892,815 2,892,815
Community Reinvestment and Repair - - - - 726,559 726,559
Critical Areas - - - - 397,582 397,582
Sheriff's Drug Task Force - - - - 132,729 132,729
Inmate Welfare - - - - 160,295 160,295
Agricultural Transfer - - - - 1,608,067 1,608,067
Rural Legacy - - - - 473,486 473,486
Dredging Special Assessments - - - - 15,041 15,041
Kent Narrows - - - - 204,537 204,537
Subtotal Restricted 23,638,847 3,112,789 - - 6,612,066 33,363,702
Committed
House and Community Services - - - - 8,981,562 8,981,562
Revolving Loan Fund - - - - 90,000 90,000
Economic Development Incentive - - - - 1,109,684 1,109,684
School Impact Fees - - - - 13,034,930 13,034,930
Fire Company Impact Fees - - - - 341,375 341,375
Parks and Recreation Impact Fees - - - - 1,135,594 1,135,594
Revenue Stabilization Fund 10,344,918 - - - - 10,344,918
Rubble Surcharge - 620,141 - - - 620,141
Developer Exactions - 5,672,693 926,238 - - 6,598,931
Subtotal Committed 10,344,918 6,292,834 926,238 - 24,693,145 42,257,135
Assigned
Encumbrances - 13,685,676 5,073,598 - - 18,759,274
Subsequent Years' Expenditures - 9,748,774 3,108,000 - - 12,856,774
Department of Aging - - - - 128,177 128,177
Roads Operating - - - - 103,723 103,723
Community Partnerships for Children - - - - 61,065 61,065
Law Library - - - - 618,678 618,678
Capital Projects - - 1,183,671 - - 1,183,671
Loans Receivable - 1,344,915 - - - 1,344,915
Subtotal Assigned - 24,779,365 9,365,269 - 911,643 35,056,277
Unassigned
General Fund 53,768,694 - - - - 53,768,694
Dredging Special Assessments - - - - (1,006,624) (1,006,624)
Subtotal Unassigned 53,768,694 - - - (1,006,624) 52,762,070
Total Governmental Funds Balances $ 88,788,669 $ 34,184,988 $ 10,291,507 $ - $ 32,433,882 $ 165,699,046
91

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 12 – 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 $ 3,888,701 $ -
Public Safety 1 ,518,468 -
Public Works 2 ,944,040 -
Parks & Recreation 3 ,316,743 -
Health and Social Services 2 50,608 -
Education and Library 1 ,258,599 -
Conservation of Natural Resources 7,014 -
Economic/Community Development 5 01,503 -
Resurfacing Contracts and Materials - 4 ,255,016
Roads Construction Equipment - 8 18,582
Total encumbrances $ 13,685,676 $ 5,073,598
NOTE 13 - 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. As of the date of this report, it is believed that there are no outstanding claims in excess of the
equity of the trust.
Settlements – In fiscal years 2023, 2024 and 2025, settlements have not exceeded insurance coverage for any type of
policy in effect.
92

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 14 - 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 a cost-sharing multiple-employer defined benefit plan 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. Although separate valuations are performed for each
pool, all assets accumulated in the plan may legally be used to pay benefits to any member.
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 a cost-sharing multiple-employer 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 as a
fiduciary component unit 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
93

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 14 - 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. Currently, more than 150 governmental units
participate in the Employees’ Retirement System.
The Law Enforcement Officers’ Pension System (LEOPS)
The Law Enforcement Officers’ Pension System (LEOPS) was established on July 2, 1990, to provide retirement allowances
and other benefits for certain State and local law enforcement officers. This System includes both retirement plan and
pension plan provisions which are applicable to separate portions of the System’s membership. The retirement plan
provisions are only applicable to those members who, on the date they elected to participate in LEOPS, were members of the
Employees’ Retirement System. This System’s pension plan provisions are applicable to all other participating law
enforcement officers.
Summary of Significant Plan Provisions
All plan benefits are specified by the State Personnel and Pensions Article of the Annotated Code of Maryland. For all
individuals who are members of the Employees’, Teachers’, or Correctional Officers’ 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 Correctional
Officers’ Retirement System on or after July 1, 2011, retirement allowances are computed using both the highest five years’
AFC and the actual number of years of accumulated creditable service. For all individuals who are members of the pension
systems of the State Retirement and Pension System on or before June 30, 2011, pension allowances are computed using both
the highest three consecutive years’ AFC and the actual number of years of accumulated creditable service. For any
individual who becomes a member of one of the pension systems on or after July 1, 2011, pension allowances are computed
using both the highest five consecutive year’s AFC and the actual number of years of accumulated creditable service.
Various retirement options are available under each system which ultimately determines how a retiree’s benefit allowance
will be computed. Some of these options require actuarial reductions based on the retiree’s and/or designated beneficiary’s
attained age and similar actuarial factors.
94

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 14 - RETIREMENT PLANS (CONTINUED)
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.
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.
A brief summary of the retirement eligibility requirements of and the benefits available under the various systems in effect
during fiscal year 2024, 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.
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).
95

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 14 - RETIREMENT PLANS (CONTINUED)
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 Law Enforcement Officers’ and Local Fire and Police Systems are not eligible for early service benefits.
Disability and Death Benefits
Generally, a member covered under retirement plan provisions who is permanently disabled after 5 years of service receives
a service allowance based on a minimum percentage (usually 25%) of the member’s AFC. A member covered under pension
plan provisions who is permanently disabled after accumulating 5 years of eligibility service receives a service allowance
computed as if service had continued with no change in salary until the retiree attained age 62. A member (other than a
member of the Maryland General Assembly or a judge, both of which are ineligible for accidental disability benefits) who is
permanently and totally disabled as the result of an accident occurring in the line of duty receives 2/3 (66.7%) of the
member’s AFC plus an annuity based on all member contributions and interest. Death benefits are equal to a member’s
annual salary as of the date of death plus all member contributions and interest.
96

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 14 - RETIREMENT PLANS (CONTINUED)
Adjusted Retirement Allowances
Retirement and pension allowances are increased annually to provide for changes in the cost of living according to prescribed
formulae. 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 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 LEOPS members must end employment and fully
retire at the end of the DROP period. The maximum period of participation is 5 years for LEOPS.
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.
Actuarial Assumptions
The total pension liability in the June 30, 2024 actuarial valuation was determined using the following actuarial assumptions,
applied to all periods included in the measurement.
Inflation In the 2024 actuarial valuation, 2.5% general, 3% wage.
In the 2023 actuarial valuation, 2.25% general, 2.75% wage.
Salary Increases In the 2024 actuarial valuation, 3% to 22.5%..
In the 2023 actuarial valuation, 2.75% to 11.25%.
Investment Rate of Return In the 2024 actuarial valuation 6.80%.
In the 2023 actuarial valuation 6.80%.
Retirement Age Experience-based table of rates that are specific to the type of eligibility
condition. Last updated for the 2024 valuation pursuant to the 2024
experience study for the period July 1, 2018 to June 30, 2023.
Mortality Various versions of the Pub- 2010 Mortality Tables with projected
generational mortality improvements based on the MP-2021 fully
generational mortality improvements scale for males and females.
97

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 14 - RETIREMENT PLANS (CONTINUED)
Investments
The long-term expected rate of return on pension plan investments was determined using a building-block method in which
best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and
inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of
return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected
inflation. Best estimates of geometric real rates of return were adopted by the Board of Trustees after considering input from
the System’s investment consultant(s) and actuary(s).
For each major asset class that is included in the System’s target asset allocation, these best estimates are summarized in the
following table:
Long-Term
Expected Real
Asset Class Target Allocation Rate of Return
Public Equity 34% 6.0%
Private Equity 16% 8.5%
Rate Sensitive 20% 2.4%
Credit Opportunity 9% 5.4%
Real Assets 15% 5.5%
Absolute Return 6% 3.9%
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, 2024.
For the year ended June 30, 2024, the annual money-weighted rate of return on pension plan investments, net of the pension
plan investment expense, was 6.89%. 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 6.80% was used to measure the total pension liability. The single discount rate was based on the
expected rate of return on pension plan investments of 6.80%. The projection of cash flows used to determine this single
discount rate assumed that plan member contributions will be made at the current contribution rate and that employer
contributions will be made 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.
98

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 14 - RETIREMENT PLANS (CONTINUED)
Sensitivity of the Net Pension Liability
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following presents the plan’s
net pension liability, calculated using a single discount rate of 6.80%, as well as what the plan’s net pension liability would
be if it were calculated using a single discount rate that is 1% point lower or 1% point higher:
1% Decrease Discount Rate 1% Increase
System 5.80% 6.80% 7.80%
County $ 86,311,382 $ 59,388,091 $ 36,945,635
Board of Education 12,426,244 8,550,100 5,319,061
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. The related payment for fiscal year
ending 2025 was $3,044,698. In addition, the State of Maryland contributed $6,772,856 on behalf of the Board. The Board
has recognized the State on-behalf payments as both a revenue and expense.
Pension Liabilities, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to
Pensions
Because the State of Maryland pays the unfunded liability for the Teachers’ Systems on behalf of the Board and Library, and
the Board pays the normal cost for the Teachers’ Systems, the Board and Library are not required to record its’ share of the
unfunded pension liability for the Teachers’ Systems, the State of Maryland is required to record that liability. The Board is
required to record a liability for the Employees’ Systems.
At June 30, 2025, 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' System) $ 8,550,100
State's proportionate share of the net pension liability (Teachers' System) 58,330,888
Total $ 66,880,988
99

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 14 - RETIREMENT PLANS (CONTINUED)
The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of that date. The County’s proportion of the net pension liability was
calculated as follows by the System(s):
1. Calculate the net pension liability for the entire System in accordance with the provisions of GASB No. 67.
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 Boards 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 calculation.
4. Calculate for each participating government, their percentage of the adjusted System contribution by dividing the
total adjusted System contribution into each PGU’s contribution.
5. Provide each PGU its adjusted percentage of contribution and the System’s net pension liability and other related
amounts under the GASB No. 67 requirements.
At June 30, 2025, the County reported the following related to pensions:
Board County
Employer's proportionate (percentage) of the collective net pension liability 0.032% 0.226%
Employer's proportionate share of the collective net pension liability $ 8,550,100 $ 59,388,091
Pension expense recognized by the employer for the year ended $ 4,346,684 $ 9,751,096
Deferred Deferred
Outflows of Inflows of
Resources Resources
County
Changes in assumptions $ 4,006,877 $ -
Net difference between projected and actual investment earnings 4,289,404 -
on pension plan investments
Differences between expected and actual experience 6,133,967 (1,437,290)
Change in proportion 12,437,502 (2,426,832)
Contributions subsequent to measurement date 7,748,048 -
Total $ 34,615,798 $ (3,864,122)
Board
Changes in assumptions $ 576,870 $ -
Net difference between projected and actual investment earnings
on pension plan investments 617,545 -
Differences between expected and actual experience 883,107 (206,926)
Change in proportion and share of contributions 730,397 -
Contributions subsequent to measurement date 946,986 -
Total $ 3,754,905 $ (206,926)
100

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 14 - RETIREMENT PLANS (CONTINUED)
The $7,748,048 and $946,986 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, 2026. Other amounts reported as deferred outflows and deferred inflows of resources for the County
will be amortized over a five-year period, as follows:
Year ended June 30: Board County
2026 $ 538,054 $ 4,569,300
2027 1,072,988 8,708,160
2028 517,054 4,542,455
2029 335,220 3,399,656
2030 137,677 1,784,057
$ 2,600,993 $ 23,003,628
Covered payroll refers to all compensation paid to active employees covered by the Systems.
Covered On-Behalf
Payroll By State
County $ 42,765,236 $ -
Board of Education 70,589,129 6,772,856
Library 1,545,959 238,488
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.
The aggregate amount of pension expense is as follows:
Maryland State Retirement and Pension System $ 9,751,096
Length of Service Award Program ("LOSAP") 496,743
Aggregate amount of pension expense $ 10,247,839
101

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 15 - DEFERRED COMPENSATION PLAN
The County offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section
457. The Plan is available to all County employees and permits participants to defer a portion of their salary to future years.
Participation in the plan is optional, and deferred compensation is generally not available to participants until termination,
retirement, death, or an unforeseeable emergency, as defined by the Plan. All amounts deferred, related investment earnings,
and associated rights are the sole property of the participants, and the County has no liability for losses under the Plan.
Investments are managed by the Plan’s administrator based on investment options selected by each participant. The County
has no management control over the assets of the Plan. Accordingly, pursuant to GASB Statement No. 32, the assets of the
Plan are not included in these financial statements.
During fiscal year 2025, the County approved the implementation of an employer matching contribution program in
conjunction with the existing 457(b) deferred compensation plan. Effective January 1, 2025, the County established a 401(a)
match plan to provide an employer match of $10 per pay period for eligible employees who contribute to the County’s 457(b)
plan. The purpose of the employer match is to increase participation and enhance employee retention. Voya serves as the plan
administrator for both plans, and the estimated annual cost of the employer matching contribution program is between
$50,000 and $60,000.
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS
PRIMARY GOVERNMENT
Other Post-Employment Benefit Trust (OPEB Trust)
In fiscal year 2015, the County Commissioners approved the County joining the MACo Pooled OPEB Investment Trust
Fund. A separate Trust document for the MACo OPEB Trust can be found on the MACo website at www.mdcounties.org.
Plan Reporting
The measurement date for GASB 74 is the Employer’s fiscal year end, June 30, 2025. 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, 2025, with adjustments made for the one-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, 2025
 Measurement Date: June 30, 2025
 Reporting Date: June 30, 2025
Plan Membership
The following is a summary of the plan membership as of January 1, 2025.
Active 547
Retired 305
Total 852
102

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Other Post-Employment Benefit Trust (OPEB Trust) (Continued)
PRIMARY GOVERNMENT
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.
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)
103

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Plan description (Continued)
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.
For current County retirees receiving a 90% subsidy, they would continue to receive this subsidy rate, for all others:
Years of County Service Prior to EPO/BCA Total PPO Total Subsidy
Retirement Subsidy Percentage Percentage
Less than 15 years 0.0% 0.0%
At least 15 yrs but less than 18 60.0% 60.0%
At least 18 yrs but less than 21 70.0% 65.0%
At least 21 yrs but less than 24 80.0% 75.0%
24 years or more 85.00% 80.00%
Plan Changes Since Prior Valuation
Since the last valuation, the claims assumptions and medical trend rates were updated to better reflect actual experience and
available information regarding healthcare costs.
Actuarial Information
Actuarial assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2025, using the following actuarial
assumptions, applied to all periods included in the measurement:
 Investment Return: 6.00%, net of investment expense and including inflation
 Healthcare Trend: 6.00% initially for all plans, grading down to 4.25% for PPO, EPO, and BCA plans ultimate
Mortality rates are based on the PUB2010G Headcount tables with Scale SSA applied on a generational basis. PUB2010G
Headcount Disabled tables are used for those on disability, if applicable.
Changes in Actuarial assumptions
The discount rate was changed due to an updated fund availability analysis.
104

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Actuarial Information (Continued)
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 footnote 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 (13 years remaining as of the valuation date).
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, 2025, and the final investment return assumption, are summarized in the following table:
Long-Term
Expected Real
Asset Class Rate of Return Weight
US Equity 5.90% 36.0%
International Equity 6.25% 24.0%
Fixed Income 2.40% 35.0%
Real Estate 4.50% 5.0%
Total Weighted Average Real Return 4.69% 100.0%
Plus Inflation 2.50%
Total Return w/o Adjustment 7.19%
Risk Adjustment -1.19%
Total Expected Return 6.00%
Discount Rate
The discount rate used to measure the total OPEB liability is 6.00%. The projection of cash flows used to determine the
discount rate assumed by the County contributions will be made equal to the actuarially determined contributions.
Based on the above, the OPEB’s 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 rates of return on OPEB plan investments was applied to all periods of projected benefit
payments to determine the total OPEB liability.
105

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Net OPEB Liability
Sensitivity of the net OPEB liability to changes in the discount rate
The following presents the net OPEB liability of the plans, 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 Discount Rate 1% Increase
System 5.00% 6.00% 7.00%
Net OPEB liability $ 30,919,677 $ 24,157,111 $ 17,824,712
Sensitivity of the net OPEB liability to changes in the trend rate
The following presents the net OPEB liability of the plans, calculated using the current health care trend rate of from 6.00%
to an ultimate rate of 4.25% for PPO, EPO, and BCA plans, as well as what each plans 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
3.25% 4.25% 5.25%
Net OPEB liability $ 17,365,702 $ 24,157,111 $ 31,580,893
106

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 16 – 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 $ 1,013,276
Interest 3,083,058
Changes in benefit terms -
Difference between expected and actual experience (3,750,411)
Changes in assumptions (630,211)
Benefit payments (2,013,758)
Net change in total OPEB liability (2,298,046)
Total OPEB liability - beginning of year 52,234,402
Total OPEB liability - end of year $ 49,936,356
Plan Fiduciary Net Position ("PFNP")
Contributions - employer $ 3,471,912
Contributions - member -
Net investment income 2,344,561
Benefit payments (2,013,758)
Admin expenses (14,927)
Other -
Net change in plan fiduciary net position 3,787,788
Plan fiduciary net position - beginning of year 21,991,457
Plan fiduciary net position - end of year $ 25,779,245
Net OPEB liability ("NOL") - beginning of year $ 30,242,945
Net OPEB liability - end of year $ 24,157,111
PFNP as a % of TOL 51.6%
Covered employee payroll $ 41,579,596
NOL as a % of covered payroll 58.1%
107

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 16 - 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 $ 1,013,276
Interest on total OPEB liability 3,083,058
Difference between expected and actual experience* (2,524,241)
Changes in actuarial assumptions* (382,612)
Employee contributions -
Changes in benefit terms -
Projected earnings on plan investments (1,320,834)
Difference between projected and actual earnings* (293,554)
Administrative expense 14,927
Other changes in fiduciary net position -
Total OPEB expense $ (409,980)
* - portions recognized for expense
Deferred Outflow/Inflow Summary
The deferred outflows / inflows are as follows:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Net difference between projected and actual earnings on plan investments $ - $ (1,033,819)
Differences between expected and actual experience 163,453 (12,090,731)
Changes in actuarial assumptions 375,145 (2,601,389)
Total $ 538,598 $ (15,725,939)
Net deferred outflows / (inflows) will be amortized as follows:
Year ended June 30:
2026 $ (2,856,073)
2027 (3,437,115)
2028 (3,498,985)
2029 (3,371,990)
2030 (562,966)
Thereafter (1,460,212)
$ (15,187,341)
108

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 16 - 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 January 1, 2024, the date of the actuarial valuation data, approximately 525 plan members or beneficiaries were
receiving benefits, and 910 active employees are potentially eligible to receive future benefits. These numbers exclude 97
employees who waived coverage.
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, 2025
NOTE 16 - 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 50% 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, 2025, the Board recognized an OPEB expense of $2,976,627.
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, 2024. Therefore, plan information for
the year ended June 30, 2024 is utilized. The following table shows the components of the Board’s total and net OPEB
liability at June 30, 2024.
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a) - (b)
Balance - beginning of year $ 141,377,136 $ 557,276 $ 140,819,860
Changes for the Year
Service Cost 5,115,293 - 5,115,293
Interest 5,389,201 - 5,389,201
Experience Losses/Gains (8,988,624) - (8,988,624)
Trust Contributions - Employer - 2,974,621 (2,974,621)
Net Investment Income - 59,234 (59,234)
Changes in Assumptions 5,975,549 - 5,975,549
Benefit Payments (net of retiree contributions) (2,974,621) (2,974,621) -
Net Changes 4,516,798 59,234 4,457,564
Balance - end of year $ 145,893,934 $ 616,510 $ 145,277,424
Plan Fiduciary Net Position as a % of Total OPEB Liability 0.42%
Covered employee payroll $ 70,796,191
Net OPEB Liability as a % of covered payroll 205.21%
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, 2025
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
BOARD OF EDUCATION (CONTINUED)
Funding Status and Funding Progress
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 is as follows:
Valuation Date January 1, 2024
Measurement Date June 30, 2024
Actuarial Cost Method - GASB 75 Entry age normal
Asset Valuation Method Market value of assets
Actuarial Assumptions:
Discount Rate - June 30, 2023 3.86%
Discount Rate - June 30, 2024 3.97%
Payroll Growth 2.20%
Inflation Rate 2.60%
Rate of Growth in Real Income 1.40%
Investment Rate of Return 6.00%
Medical Trend Based on the Society of Actuaries (SOA) Long-Run Medical Cost Trend Model.
The current valuation uses the 2024 version of the model with baseline
assumptions. The initial rate assumed is 7.50% and decreases to 7.00% in 2025
ultimately leveling off at 4.04% in 2075.
Mortality The mortality rates for healthy pre-retirees was calculated using the Pub-2010
Employees Headcount-Weighted Mortality Projected with Fully Generational
MP2021 Mortality Improvement Scale. The mortality rates for healthy post-
retirees was calculated using the Pub-2010 Retirees Headcount-Weighted
Mortality Projected with Fully Generational MP2021 Mortality Improvement
Scale. The mortality rates for disabled individuals was calculated using the Pub-
2010 Disabled Retirees Headcount-Weighted Mortality Projected with Fully
Generational MP2021 Mortality Improvement Scale.
111

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
BOARD OF EDUCATION (CONTINUED)
Discount Rate
The discount rate used to determine OEPB liabilities under GASB 75 depends on the Board’s funding policy. The Board has
established an irrevocable Trust, but because they have not established a formal contribution policy they are considered a
government that makes ad-hoc contributions. Therefore, the discount rate should be determined based on a blend of the
funded and unfunded rates based on a projection of the plan’s fiduciary net position. The funded rate for the Board is the
long-term expected rate of return on assets of 6.00%. However, for simplicity we have used the unfunded rate as the basis
for the discount rate, which under GASB 75 must be based on an index rate for 20-year, tax exempt general obligation
municipal bonds with an average rating of AA/Aa or higher. The Board uses the Fidelity 20-year Municipal General
Obligation AA bond (Municipal GO AA) index. This rate was 3.97% as of June 30, 2024.
Sensitivity of the Net OPEB Liability
The following table presents the Board’s net OPEB liability at June 30, 2024 using the discount rate of 3.97%, 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:
DISCOUNT RATE
1% Decrease Discount Rate 1% Increase
System 2.97% 3.97% 4.97%
Net OPEB liability $ 1 70,696,713 $ 1 45,277,424 $ 1 24,892,849
The following table presents the Board’s net OPEB liability at June 30, 2024 using the health care trend rate of 3.92%, 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 TREND
1% Decrease to Discount Rate 1% Increase to
2.92% 3.92% 4.92%
Net OPEB liability $ 1 22,476,720 $ 1 45,277,424 $ 1 74,904,836
Deferred Inflows/Outflows of Resources related to OPEB
At June 30, 2025, the Board reported deferred outflows of resources and deferred inflows of resources related to the OPEB
plan from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes of assumptions $ 32,001,931 $ (48,030,860)
Net difference between projected and actual earnings - (13,994)
Differences between expected and actual experience 1,034,702 (58,672,435)
Contributions subsequent to measurement date 2,976,627 -
Total $ 36,013,260 $ (106,717,289)
112

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
BOARD OF EDUCATION (CONTINUED)
Deferred Inflows/Outflows of Resources related to OPEB (Continued)
The $2,976,627 of deferred outflows of resources resulting from the Board’s contributions to the plan subsequent to the
measurement date of June 30, 2024 will be recognized as a reduction of the net OPEB liability in the year ending June 30,
2026. 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 ended June 30:
2026 $ (16,118,029)
2027 (16,104,801)
2028 (14,802,052)
2029 (16,801,818)
2030 (8,611,131)
Thereafter (1,242,825)
$ (73,680,656)
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”). In August 2020, the
Trust was closed and all members transferred their respective funds to the MACo (Maryland Association of Counties) Pooled
OPEB Investment Trust Fund. A separate “Trust document for the MACo OPEB Trust can be found on the MACo website at
www.mdcounties.org.
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).
113

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 16 - 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, 2024.
Active 24
Retired 9
Total 33
Contributions
The Library pays retiree healthcare benefits on a pay-as-you-go basis. For the year ended June 30, 2025, the Library
contributed $30,312.
Net OPEB liability
The Library's net OPEB liability was measured as of June 30, 2025, and the total OPEB liability used to calculate the net
OPEB liability was determined by an actuarial valuation January 1, 2024.
Actuarial assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2024, using the following actuarial
assumptions, applied to all periods in the measurement:
Expected return – 6% including inflation and net of investment expenses.
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 SSA 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
depletion analysis.
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 (13 years remaining).
Discount rate
The discount rate used to measure the total OPEB liability is 5.0%. There is essentially no prefunding of benefits in an OPEB
trust for this plan (i.e., pay as you go), however, the Library has funds invested in the MACo pooled OPEB trust. For this
analysis, we assumed the trust assets would grow with earnings until a 60% funding ratio is reached. Based on this, a blended
rate was developed which consists of the 20-year municipal bond Aa index as of June 30, 2025 of 4.81% blended with the
assumed return of 6.00%.
Benefits would be paid from the trust from 2054 to 2064, and from general fund assets before and after this time period,
resulting in a blended rate of 5.0%. The prior rate was 4.3%.
114

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 16 - 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
(a) (b) (a) - (b)
Balance - beginning of year $ 556,711 $ 36,325 $ 520,386
Changes for the year
Contributions - employer - 3 0,312 (30,312)
Service cost 7 ,024 - 7 ,024
Net investment income 2 3,596 3 ,499 2 0,097
Difference between expected and actual experience 7 ,792 - 7 ,792
Changes in actuarial assumptions (35,600) - (35,600)
Benefit payments, including refunds (30,312) (30,312) -
Net changes (27,500) 3 ,499 (30,999)
Balance - end of year $ 529,211 $ 39,824 $ 489,387
Plan fiduciary net position as a % of total OPEB liability 7.53%
Covered employee payroll $ 1,545,959
Net OPEB liability as a % of covered payroll 31.66%
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:
DISCOUNT RATE
1% Decrease Discount Rate 1% Increase
System 4.00% 5.00% 6.00%
Net OPEB liability $ 544,744 $ 489,387 $ 442,870
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.
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. This is then modified through a Monte-Carlo simulation process, by which a (downward) risk adjustment is applied
to the baseline expected return.
115

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 16 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
COMPONENT UNITS (CONTINUED)
LIBRARY (CONTINUED)
Best estimates of arithmetic real rates of return for each major asset class included in the plan’s target asset allocation as of
June 30, 2025, and the final investment return assumption, are summarized in the following table:
Long-Term
Expected Real
Asset Class Rate of Return Weight
US Equity 5.90% 36.0%
International Equity 6.25% 24.0%
Fixed Income 2.40% 35.0%
Real Estate 4.50% 5.0%
Total Weighted Average Real Return 4.69% 100.0%
Plus Inflation 2.50%
Total Return w/o Adjustment 7.19%
Risk Adjustment -1.19%
Total Expected Return 6.00%
OPEB expense and deferred outflows of resources related to OPEB
For the year ended June 30, 2025, the Library recognized an OPEB expense of $28,262. At June 30, 2025, the Library
reported deferred outflows and deferred inflows of resources related to the OPEB plan from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 14,517 $ (97,624)
Changes in actuarial assumptions 44,758 (122,651)
Net difference between projected and actual earnings - (1,021)
Total $ 59,275 $ (221,296)
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:
2026 $ 42
2027 (33,969)
2028 (42,745)
2029 (42,489)
2030 (38,201)
Thereafter (4,659)
$ (162,021)
116

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 17 – 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, 2024
 Measurement date: December 31, 2024
 Reporting date: June 30, 2025
An active member, upon reaching 55 years of age, is eligible to receive $6 or $10 per month for each year of eligible service
determined by two separate benefit formulas which determine the monthly rate, with a $400 maximum monthly benefit that
may be earned. An inactive member that reaches 55 years of age and is vested with 10 years of service is also entitled to the
same benefits ($6 or $10/month for each year of service, maximum $400 per month). Payments are made over a 10-year
annuity and the sponsor reserves the right to distribute a one-time lump sum actuarial equivalent benefit to terminated
participants in lieu of the annuity. At the time of death, the participants’ designated beneficiary will receive the lump sum of
the present value of the participants’ accrued benefit.
The participant summary as of the January 1, 2024 actuarial valuation is as follows:
Active members 344
Vested-terminted 111
Retired and beneficiaries 180
Total 635
Actuarial Assumptions
The total LOSAP liability was determined by an actuarial valuation as of January 1, 2024 rolled forward to December
31, 2024 using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 0.00%
Salary increases Not Applicable
Investment rate of return 4.28%, 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 4.28% discount rate is based on the S&P Municipal Bond 20-year High Grade Index as of December 31, 2024.
The above is a summary of key actuarial assumptions. Full descriptions of the actuarial assumptions are available in the
January 1, 2024 actuarial valuation report.
117

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 17 – VOLUNTEER FIREMAN PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM (LOSAP)
(CONTINUED)
Sensitivity of Total LOSAP Liability
The following presents the total LOSAP liability, calculated using single discount rate of 4.28%, 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.
1% Decrease Discount Rate 1% Increase
System 3.28% 4.28% 5.28%
Net LOSAP liability $ 12,989,804 $ 11,098,220 $ 9,604,908
Total LOSAP Liability
The components of the total LOSAP liability are as follows:
Plan
Total LOSAP Fiduciary Net Net LOSAP
Liability Position Liability
Balances as of January 1, 2024 $ 11,180,243 $ - $ 11,180,243
Changes for the year:
Service cost 400,444 - 400,444
Interest 468,442 - 468,442
Changes of benefit terms - - -
Differences between expected and actual experience 418,351 - 418,351
Changes of assumptions (885,740) - (885,740)
Benefits payments and expenses (483,520) - (483,520)
Net changes (82,023) - (82,023)
Balances as of December 31, 2024 $ 11,098,220 $ - $ 11,098,220
Plan fiduciary net position as a percentage of the total pension liability 0%
LOSAP Expense
The components of LOSAP expense are as follows:
LOSAP
Expense
Service cost $ 400,444
Interest 468,442
Changes in benefit terms -
Differences between expected and actual earnings -
Differences between expected and actual experience 199,762
Changes of assumptions (571,905)
Total LOSAP expense $ 496,743
118

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 17 – VOLUNTEER FIREMAN PENSION PLAN LENGTH OF SERVICE AWARD PROGRAM (LOSAP)
(CONTINUED)
Maryland State Retirement and Pension System $ 9,751,096
Length of Service Award Program ("LOSAP") 496,743
Aggregate amount of pension expense $ 10,247,839
LOSAP Deferred Outflows and Deferred Inflows of Resources
The components of LOSAP deferred outflows and deferred inflows are as follows:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 716,808 $ (351,257)
Changes of assumptions 370,243 (2,337,255)
Net difference between projected and actual earnings - -
Total $ 1,087,051 $ (2,688,512)
Amounts reported as deferred outflows and deferred inflows will be amortized as follows:
Year ended June 30:
2026 $ (640,483)
2027 (716,604)
2028 (139,892)
2029 (104,482)
2030 -
Thereafter -
$ (1,601,461)
119

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 18 – DEFICIT EQUITY BALANCES
The following Non-Major Governmental Funds ended the year with deficit equity balances:
The Dredging Special Assessments Fund had a deficit balance in unrestricted net position of $1,006,624 as of June 30,
2025. This is a temporary deficit balance as loan funding for current year projects will be received in fiscal year 2026.
The following Enterprise Funds ended the year with deficit equity balances:
The Bay Bridge Airport Fund has a deficit balance in unrestricted net position of $1,219,226 as of June 30, 2025.
The Golf Course Enterprise Fund has a deficit balance in unrestricted net position of $324,109 as of June 30, 2025.
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 19 – COMMITMENTS, CONTINGENCIES AND SUBSEQUENT EVENTS
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, 2025
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 2025.
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 2025.
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 $6,292,834 has been committed, including $5,672,693 for site improvements pursuant to agreements with
local developers, and $620,141 for rubble surcharge. In the Roads Capital Projects Fund, $926,238 has been contributed by
developers and is committed to fund infrastructure improvements.
120

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 19 – COMMITMENTS, CONTINGENCIES AND SUBSEQUENT EVENTS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
On November 22, 2024, the Circuit Court entered a judgment finding that the County did not validly accept an offer of
common-law dedication, that the County’s installation of a sewer line constituted a taking without just compensation and a
trespass. The Circuit Court ruled that (1) the compensation to Queen Anne’s Research and Development Corporation
(“QARD”) for the acquisition of the permanent easement was $816,000; (2) QARD was entitled to an additional $81,600 for
trespass; (3) $791,286.50 in attorney’s fees under 42 U.S.C. Section 1983; and (4) the County’s acquisition of the Easement
violated QARD’s right to procedural due process. The County has appealed this matter, expects to vigorously prosecute the
appeal and is confident that the judgments will be either stricken or reduced significantly.
In addition to the litigation above, the County is a defendant in various lawsuits. After considering all relevant facts and the
opinion of legal counsel, it is management’s opinion that such litigation will not have a material adverse effect on the
financial position of the County.
Effective July 1, 2025, the County assumed ownership of all assets, liabilities, financial management, and operations of the
Town of Sudlersville’s Water and Sewer Utility. The County, which also serves as a County-wide Sanitary District will
continue to manage this utility as part of the overall Sanitary District.
In October 2025, the County issued $23 million of Public Facilities Bonds and $11 million of Public Facilities Refunding
Bonds. The proceeds of the Public Facilities Bonds will be used to fund school and administrative building improvements, as
well as other County improvement projects. The proceeds of the refunding bonds will be used to refund the County’s
outstanding Public Facilities Bonds of 2014. The County received ratings of AAA from S&P and Fitch and an upgraded
rating of Aaa from Moody’s.
The County and State of Maryland Department of Natural Resources have an agreement on loan funding for the Price Creek
Dredging project. The currently approved loan amount is $1,050,000 for the project. This will cover certain engineering and
permitting costs, dredging, and a majority of the transport of the dredge material. Although expenditures totaling $1 million
occurred in fiscal year 2025, loan proceeds are not expected until fiscal 2026.
NOTE 20 – JOINT VENTURE
In 1991, the County Commissioners, in conjunction with Talbot, Caroline, and Kent Counties, entered into a regional
partnership known as the Midshore Regional Landfill Joint Venture. This venture was formed to provide a long-term, solid
waste management solution for the four-county area. As part of the agreement, each of the four Counties agreed to host a
solid waste facility for a twenty-year period, giving the venture a total duration of eighty years. In 1991, the Midshore
Regional Landfill opened in Talbot County and served the waste management needs of the four-County area for twenty
years. This facility, owned and operated by the Maryland Environmental Service (MES), closed on December 31, 2010. The
second Midshore facility, Midshore II, opened in Caroline County in January 2011 and is fully operational. After the facility
in Caroline County reaches capacity, another landfill will be constructed in Queen Anne's County, with Kent County to
follow in turn. Each County is required to, and has, set aside sufficient land to construct a landfill within their borders. The
agreement expires when the last of the four landfills is closed.
Queen Anne’s County has a 36.07% 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.
Total closure and post closure costs for the landfills are $25.4 million, with approximately $9.2 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 $12.5 million as of June 30, 2025, determined by the estimated useful
life of the landfill.
121

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 20 – JOINT VENTURE (CONTINUED)
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 with a remaining outstanding balance of $15.1
million. As of June 30, 2025, $5.4 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.
MES has satisfied its financial assurance requirements based upon the local government financial ratio tests of the project
participants as of June 30, 2025. MES expects to satisfy these requirements as of June 30, 2025 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 21 – 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).
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 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 2023, the County has maintained the required self-testing of all monitoring wells. As per a letter received
by MDE-OCP, dated March 27, 2023, regarding Case #2004-0264-QA, the County was directed to “Conduct one or more
quarterly sampling event”. This task was contracted out to Chesapeake GeoSciences, Inc. and was performed on July 26,
2023. This report was then sent to MDE-OCP in the month of September 2023. Along with this report, to accompany the
reports data, the County’s self-testing monthly data was also compiled and sent to MDE-OCP on September 12, 2023, which
was inclusive of the months January 2022 through August 2023. During fiscal year 2025, the County has maintained the
required self-testing of all monitoring wells.
Also, through the course of FY25, there has been no contact from MDE-OCP with regards to the monitoring wells. As per an
email from MDE-OCP dated September 22nd, 2023 (FY24), it was stated “We look forward to reviewing that report and the
provided gauging data. Once we complete our review, we will reach out.” As of this point, there still has been no response
from MDE-OCP.
122

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 21 – POLLUTION REMEDIATION OBLIGATIONS (CONTINUED)
The County has been and will continue to follow the schedule and monitor the wells as it has been doing for the past years.
Also, the County will continue to generate a monthly report showing the data found during the monitoring processes. As
applied, the following schedule is as follows: monitoring wells MW-2A, MW-11, and MW-9 are tested every week. All
monitoring wells are tested once a month.
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.
NOTE 22 – RESTATEMENT – CORRECTION OF ERRORS
COMPONENT UNITS
HOUSING AUTHORITY
During 2025, corrections of errors resulting in an increase in beginning net position of $743,866 were required to properly
state the financial statements. Descriptions of the adjustments are below:
1. Accounts receivable was restated for a duplicate payment in the prior fiscal year. Accounts receivable
was understated as of June 30, 2024.
2. Land ($25,550) and a building ($727,634) that was disposed of in a prior year and relating accumulated
depreciation ($218,290) was removed. Capital assets were overstated as of June 30, 2024.
3. Funding received from the County in the prior year that was provided as an operating grant was adjusted
from accounts payable – other government. Accounts payable was overstated as of June 30, 2024.
4. Long-term debt with the County and external parties were reconciled. Long-term debt was overstated as
of June 30, 2024.
5. Unearned revenue for funding that was spent/earned in a prior fiscal year was adjusted. Unearned revenue
was overstated as of June 30, 2024.
Beginning Balance Beginning
As Previously Balance
Reported 1 2 3 4 5 As Restated
Accounts Receivable $ 1 45,309 $ 3 5,838 $ - $ - $ - $ - $ 181,147
Capital Assets, Net 1 4,465,079 - (534,894) - - - 13,930,185
Accounts Payable - Other Government (897,241) - - 897,241 - - -
Long-term Debt (1,564,011) - - - 242,568 - (1,321,443)
Unearned Revenue (134,471) - - - - 103,113 (31,358)
Net Position 1 2,767,285 3 5,838 (534,894) 897,241 242,568 103,113 13,511,151
123

R S I
EQUIRED UPPLEMENTARY NFORMATION
124

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, 2025
VARIANCE
ORIGINAL FINAL WITH FINAL
BUDGET BUDGET ACTUAL BUDGET
REVENUES
Taxes
Local Property Tax $ 85,100,000 $ 85,100,000 $ 87,494,793 $ 2,394,793
Local Income Tax 83,000,000 92,545,000 92,720,625 175,625
Admission and Amusement Taxes 252,000 252,000 272,787 20,787
Recordation Taxes 6,500,000 7,600,000 9,385,619 1,785,619
Hotel Taxes 1,100,000 1,100,000 1,213,347 113,347
County Transfer Taxes 2,300,000 2,300,000 3,414,046 1,114,046
Franchise Fee 375,000 375,000 332,058 (42,942)
Licenses and Permits 880,875 880,875 1,004,502 123,627
Intergovernmental 2,561,760 3,222,733 3,383,937 161,204
Charges for Current Services 3,469,987 3,466,987 4,671,784 1,204,797
Fines and Forfeitures 73,500 73,500 50,961 (22,539)
Investment Income 2,500,000 3,729,665 6,500,117 2,770,452
Donations - - 6 50 6 50
Miscellaneous 875,089 875,089 1,226,238 351,149
Total Revenues 188,988,211 201,520,849 211,671,464 10,150,615
EXPENDITURES
GENERAL GOVERNMENT
Legislative 756,352 790,723 783,143 7 ,580
Judicial
Circuit Court 1,112,180 1,105,326 999,094 106,232
Orphan's Court 106,228 106,228 102,788 3 ,440
State's Attorney 1,854,508 2,013,161 2,011,636 1 ,525
County Administrator 297,013 310,035 302,969 7 ,066
Board of Elections 1,351,736 1,351,736 1,250,849 100,887
Finance Office 1,768,414 1,881,852 1,876,238 5 ,614
Human Resources 941,114 996,230 995,176 1 ,054
Planning and Zoning 2,927,149 3,019,196 2,811,148 208,048
Information Technology 4,140,413 4,232,506 3,898,728 333,778
QAC-TV 521,733 559,137 558,039 1 ,098
Legal Services 525,000 1,403,356 1,225,267 178,089
Total General Government 16,301,840 17,769,486 16,815,075 954,411
PUBLIC SAFETY
Sheriff's Office 13,408,567 14,348,329 14,335,836 12,493
Volunteer Fire and Rescue Services 5,380,010 5,406,707 5,382,751 23,956
Detention Center 7,262,081 7,488,005 7,019,003 469,002
Emergency Services 15,508,638 16,090,968 15,945,488 145,480
Total Public Safety 41,559,296 43,334,009 42,683,078 650,931
PUBLIC WORKS
Administration 615,457 685,543 684,051 1 ,492
Solid Waste Disposal 1,980,885 2,025,544 1,710,867 314,677
Engineering Division 1,326,495 1,379,108 1,246,277 132,831
General Services 3,486,540 3,540,986 3,368,100 172,886
Animal Services 1,625,920 1,672,494 1,563,866 108,628
Property Management 410,463 420,880 409,073 11,807
Total Public Works 9,445,760 9,724,555 8,982,234 742,321
CONTINUED
125

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, 2025
(CONTINUED)
VARIANCE
ORIGINAL FINAL WITH FINAL
BUDGET BUDGET ACTUAL BUDGET
PARKS & RECREATION
Parks $ 5,263,708 $ 5,498,620 $ 5,497,534 $ 1,086
Recreation 1,263,535 1,300,877 1,090,073 210,804
Total Parks & Recreation 6,527,243 6,799,497 6,587,607 211,890
HEALTH AND SOCIAL SERVICES
Health Department 2,971,627 2,976,909 2,258,985 717,924
Social Services 196,614 208,593 207,892 7 01
Total Health and Social Services 3,168,241 3,185,502 2,466,877 718,625
EDUCATION AND LIBRARY
Board of Education 75,085,219 75,085,219 75,085,219 -
Chesapeake College 2,196,654 2,196,654 2,196,654 -
Queen Anne's County Free Library 2,782,887 2,782,887 2,782,887 -
Total Education and Library 8 0,064,760 8 0,064,760 8 0,064,760 -
CONSERVATION OF NATURAL RESOURCES
Cooperative Extension Service 432,615 437,591 437,228 3 63
Soil Conservation Service 345,686 360,764 341,971 18,793
4-H Park 129,800 130,800 129,934 8 66
Total Conservation of Natural Resources 908,101 929,155 909,133 20,022
ECONOMIC AND COMMUNITY DEVELOPMENT
Economic Development 1,144,378 1,176,446 1,097,236 79,210
Community Affairs 146,267 150,698 146,929 3 ,769
Housing Authority 500,000 820,000 818,009 1 ,991
Total Economic and Community Development 1,790,645 2,147,144 2,062,174 84,970
INTERGOVERNMENTAL
Aid to Municipalities 361,220 361,220 361,220 -
SDAT Costs from State 335,000 335,000 304,720 30,280
Total Intergovernmental 696,220 696,220 665,940 30,280
MISCELLANEOUS
Aid to Other Agencies 1,080,613 1,218,772 1,157,822 60,950
Insurance & Benefits 3,135,000 3,957,000 3,941,162 15,838
Transfer to OPEB Fund 1,458,154 1,458,154 1,458,154 -
Contingencies 365,763 311,262 47,696 263,566
Salary Lapse (2,261,109) (2,261,109) - (2,261,109)
Leases and Subscription-Based IT Arrangements - 208,958 208,958 -
Miscellaneous Non-Departmental 3,333,775 1,058,377 1,045,831 12,546
Total Miscellaneous 7,112,196 5,951,414 7,859,623 (1,908,209)
CONTINUED
126

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, 2025
(CONTINUED)
VARIANCE
ORIGINAL FINAL WITH FINAL
BUDGET BUDGET ACTUAL BUDGET
DEBT SERVICE
School Debt Service - Principal $ 4,155,103 $ 4,155,331 $ 4,155,331 $ -
School Debt Service - Interest 1,451,773 1,451,773 1,451,675 9 8
County Debt Service - Principal 4,688,691 4,688,463 4,486,500 201,963
County Debt Service - Interest 2,458,027 2,458,027 2,386,756 71,271
Total Debt Service 12,753,594 12,753,594 12,480,262 273,332
Total Expenditures 180,327,896 183,355,336 181,576,763 1,778,573
Excess of Revenues Over Expenditures 8,660,315 18,165,513 30,094,701 11,929,188
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals 18,000 52,335 52,860 5 25
Insurance Proceeds - 185,464 226,231 40,767
Subscription-Based IT Arrangements - 208,958 208,958 -
Transfers In From:
Impact Fees - School 2,167,290 2,167,290 2,167,290 -
Total Transfers In 2,167,290 2,167,290 2,167,290 -
Transfers Out To:
General Capital Projects Fund - 7,117,445 7,117,445 -
Roads Capital Projects Fund 1,714,061 5,214,061 5,214,061 -
Roads Operating Fund 4,810,520 5,020,379 4,076,825 943,554
Department of Aging 2,760,549 2,862,717 2,858,465 4 ,252
Department of Housing and Community Services 648,696 693,659 681,984 11,675
Community Partnerships 549,733 695,960 695,960 -
Agricultural Transfer Tax - 659,644 659,644 -
Grants Fund 48,084 98,084 32,000 66,084
Impact Fees - Fire Companies/Contingencies 90,000 90,000 39,891 50,109
Sanitary Sewer Enterprise Fund - 68,912 68,911 1
Airport Enterprise Fund 59,361 59,361 25,796 33,565
Golf Course Enterprise Fund 164,601 164,601 4 ,567 160,034
Total Transfers Out 10,845,605 22,744,823 21,475,549 1,269,274
Total Other Financing (Uses) (8,660,315) (20,130,776) (18,820,210) (1,227,982)
Net Increase (Decrease) in Fund Balance $ - $ (1,965,263) $ 11,274,491 $ 13,239,754
127

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GRANTS FUND
FOR THE YEAR ENDED JUNE 30, 2025
VARIANCE
ORIGINAL FINAL WITH FINAL
BUDGET BUDGET ACTUAL BUDGET
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ -
Recordation Taxes - - - -
State Shared Taxes - - - -
Licenses and Permits - - - -
Intergovernmental 2,089,973 2,155,442 1,815,735 (339,707)
Charges for Current Services 37,033 37,033 32,054 (4,979)
Fines and Forfeitures - - - -
Investment Income - - - -
Donations - - - -
Miscellaneous 78,465 167,616 155,499 (12,117)
Total Revenues 2,205,471 2,360,091 2,003,288 (356,803)
EXPENDITURES
Current
General Government 95,551 173,415 109,891 63,524
Public Safety 707,359 567,246 565,103 2 ,143
Public Works - - - -
Parks & Recreation 56,342 31,342 28,666 2 ,676
Health and Social Services 237,705 237,705 251,711 (14,006)
Education and Library - - - -
Conservation of Natural Resources - 80,000 19,273 60,727
Economic/Community Development 1,036,500 1,193,895 942,186 251,709
Intergovernmental - - - -
Miscellaneous - - - -
Capital Outlay 120,098 174,572 118,458 56,114
Debt Service
Principal - - - -
Interest - - - -
Total Expenditures 2,253,555 2,458,175 2,035,288 422,887
Excess of Revenues Over
(Under) Expenditures (48,084) (98,084) (32,000) 66,084
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - -
Insurance Proceeds - - - -
Transfers In 48,084 98,084 32,000 (66,084)
Transfers Out - - - -
Total Other Financing Sources (Uses) 48,084 98,084 32,000 (66,084)
Net Increase (Decrease) in Fund Balance $ - $ - $ - $ -
128

129

QUEEN ANNE'S COUNTY, MARYLAND
MARYLAND STATE RETIREMENT AND PENSION SYSTEMS
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
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 as a Total Plan's Percentage
of the of the Employer's Percentage Fiduciary Total of Total
Measurement Collective Collective Covered of Covered Net Pension Pension
Date NPL NPL Payroll Payroll Position Liability Liability
A B C (B / C) D E (D / E)
June 30, 2015 0.1189567% $ 24,721,248 $ 21,231,535 116% $ 4 5,789,840,000 $ 6 6,571,552,000 69%
June 30, 2016 0.1271511% 30,000,070 23,160,758 130% 45,365,927,000 68,959,954,000 66%
June 30, 2017 0.1232988% 26,661,766 24,681,589 108% 48,987,184,000 70,610,885,000 69%
June 30, 2018 0.1383948% 29,037,440 26,088,826 111% 51,827,233,000 72,808,833,000 71%
June 30, 2019 0.1429452% 29,483,317 26,185,838 113% 53,943,420,000 74,569,030,000 72%
June 30, 2020 0.1514518% 34,230,163 27,669,757 124% 54,586,037,000 77,187,397,000 71%
June 30, 2021 0.1745337% 26,184,085 26,110,792 100% 67,604,500,000 82,606,805,000 82%
June 30, 2022 0.1762298% 35,261,002 27,222,595 130% 64,310,991,000 84,319,523,000 76%
June 30, 2023 0.1960852% 45,159,037 33,312,053 136% 64,892,973,000 87,923,284,000 74%
June 30, 2024 0.2257721% 59,388,091 36,434,467 163% 67,909,708,000 94,214,144,000 72%
SCHEDULE OF CONTRIBUTIONS (as of fiscal year end)
Actual
Contribution
as a
Contractually Contribution Employer's Percentage
Fiscal Required Actual Deficiency Covered of Covered
Year Contribution Contribution (Excess) Payroll Payroll
A B (A - B) C (B / C)
2016 $ 2 ,477,009 $ 2,477,009 $ - $ 23,160,758 11%
2017 2,509,551 2,509,551 - 24,681,589 10%
2018 2,759,698 2,759,698 - 26,088,826 11%
2019 2,935,378 2,935,378 - 26,185,838 11%
2020 3,247,222 3,247,222 - 27,669,757 12%
2021 3,478,809 3,478,809 - 26,110,792 13%
2022 3,617,905 3,617,905 - 27,222,595 13%
2023 4,782,356 4,782,356 - 33,312,053 14%
2024 5,911,428 5,911,428 - 36,434,467 16%
2025 7,748,048 7,748,048 - 42,765,236 18%
Both schedules are presented to illustrate the requirements to show information for 10 years.
130

QUEEN ANNE'S COUNTY, MARYLAND
MARYLAND STATE RETIREMENT AND PENSION SYSTEMS
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
Changes in Benefit Terms
There were no changes of benefit terms during the year.
Changes in Assumptions
Discount rate remained 6.80%.
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, 2040; 15 years remaining.
Asset Valuation Model Five-year smoothed market (max. 120% and min 80% of the market value)
Inflation In the 2024 actuarial valuation, 2.5% general, 3% wage.
In the 2023 actuarial valuation, 2.25% general, 2.75% wage.
Salary Increases In the 2024 actuarial valuation, 3% to 22.5%.
In the 2023 actuarial valuation, 2.75% to 11.25%.
Investment Rate of Return In the 2024 actuarial valuation 6.80%.
In the 2023 actuarial valuation 6.80%.
Retirement Age Experience-based table of rates that are specific to the type of eligibility
condition. Last updated for the 2024 valuation pursuant to the 2024 experience
study for the period July 1, 2018 to June 30, 2023.
Mortality Various versions of the Pub- 2010 Mortality Tables with projected generational
mortality improvements based on the MP-2021 fully generational mortality
improvements scale for males and females.
131

QUEEN ANNE'S COUNTY, MARYLAND
OTHER POST-EMPLOYMENT BENEFITS (OPEB)
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
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 of benefit terms - - - -
Differences between expected and actual experience - - 735,549 -
Changes of assumptions - 265,899 915,266 426,582
Benefit payments (1,291,027) (1,498,005) (1,568,468) (1,561,872)
Net change in TOL 2,571,277 2,884,171 4,383,173 3,540,904
TOL - beginning of year 48,695,013 51,266,290 54,150,461 58,533,634
TOL - 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
Benefits payments (1,291,027) (1,498,005) (1,568,468) (1,561,872)
Administrative expense - (2,452) (39,142) (3,553)
Other - - - -
Net change in PFNP 1,007,622 1,438,922 1,772,460 1,943,056
Total PFNP - beginning of year 2,804,433 3,812,055 5,250,977 7,023,437
Total PFNP - 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 ("NOL") - 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 $ 2 1,604,888 $ 22,282,543 $ 23,843,440 $ 25,806,124
NOL as a % of covered employee payroll 219.6% 219.5% 216.0% 205.8%
SCHEDULE OF ACTUAL EMPLOYER CONTRIBUTION AS A PERCENTAGE OF COVERED-EMPLOYEE PAYROLL
FISCAL YEAR 2017 2018 2019 2020
Actuarially Determined Employer Contribution $ 3,853,839 $ 3,969,454 $ 4,377,119 $ 4,508,433
Actual Employer Contribution 2,223,474 2,731,447 3,037,243 3,378,771
Contribution Deficiency / (Excess) 1,630,365 1,238,007 1,339,876 1,129,662
Covered Employee Payroll 21,604,888 22,282,543 23,843,440 25,806,124
Contribution as a Percent of Payroll 10.3% 12.3% 12.7% 13.1%
The employer contributions above represent amounts paid in OPEB to retirees, as well as contributions to the OPEB trust.
The schedules is presented to illustrate the requirements to show information for 10 years. However, until a full 10-year trend is compiled,
pension plans should present information for those years for which the information is available.
132

QUEEN ANNE'S COUNTY, MARYLAND
OTHER POST-EMPLOYMENT BENEFITS (OPEB)
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
(CONTINUED)
2021 2022 2023 2024 2025
$ 1,371,367 $ 1,226,384 $ 1,263,176 $ 983,763 $ 1,013,276
3,519,372 3,220,060 3,386,945 2,962,304 3,083,058
- - 394,544 - -
(8,720,849) - (8,541,920) - (3,750,411)
(1,619,833) (686,055) (1,645,226) - (360,211)
(1,670,095) (1,731,265) (1,706,367) (1,846,441) (2,013,758)
(7,120,038) 2,029,124 (6,848,848) 2,099,626 (2,028,046)
62,074,538 54,954,500 56,983,624 50,134,776 52,234,402
$ 54,954,500 $ 56,983,624 $ 50,134,776 $ 52,234,402 $ 50,206,356
$ 3,612,555 $ 4,195,201 $ 4,098,432 $ 4,453,230 $ 3,471,912
- - - - -
2,261,978 (1,964,463) 1,430,230 1,923,140 2,344,561
(1,670,095) (1,731,265) (1,706,367) (1,846,441) (2,013,758)
(2,236) (5,253) (7,722) (8,025) (14,927)
- - (7,935) - -
4,202,202 494,220 3,806,638 4,521,904 3,787,788
8,966,493 13,168,695 13,662,915 17,469,553 21,991,457
$ 13,168,695 $ 13,662,915 $ 17,469,553 $ 21,991,457 $ 25,779,245
$ 53,108,045 $ 41,785,805 $ 43,320,709 $ 32,665,223 $ 30,242,945
$ 41,785,805 $ 43,320,709 $ 32,665,223 $ 30,242,945 $ 24,427,111
24.0% 24.0% 34.8% 42.1% 51.3%
$ 26,326,472 $ 29,071,019 $ 32,307,222 $ 36,215,104 $ 41,579,596
158.7% 149.0% 101.1% 83.5% 58.7%
2021 2022 2023 2024 2025
$ 4,419,451 $ 4,552,035 $ 3,864,103 $ 3,980,026 $ 3,578,879
3,612,555 4,195,201 4,098,432 4,453,230 3,471,912
806,896 356,834 (234,329) (473,204) 106,967
26,326,472 29,071,019 32,307,222 36,215,104 41,579,596
13.7% 14.4% 12.7% 12.3% 8.4%
133

QUEEN ANNE'S COUNTY, MARYLAND
OTHER POST-EMPLOYMENT BENEFITS (OPEB)
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
Actuarial Information - OPEB
Actuarial assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2025, using the following actuarial assumptions,
applied to all periods included in the measurement:
Investment Return: 6.00%, net of investment expense and including inflation.
Healthcare Trend: 6.00% initially for all plans, grading down to 4.25% for PPO, EPO and BCA plans ultimate.
Mortality rates are based on the PUB2010G Headcount tables with Scale SSA applied on a generational basis. PUB2010G
Headcount Disabled tables are used for those on disability, if applicable.
Changes in actuarial assumptions
The discount rate was changed 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 (13 years remaining as of the valuation date).
134

QUEEN ANNE'S COUNTY, MARYLAND
LENGTH OF SERVICE AWARD PROGRAM (LOSAP)
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
SCHEDULE OF CHANGES IN THE NET LOSAP LIABILITY (as of measurement date)
AS OF MEASUREMENT DATE 2017 2018 2019 2020 2021 2022 2023 2024
Total LOSAP liability ("TLL")
Service cost $ 206,276 $ 164,371 $ 215,978 $ 2 85,808 $ 350,104 $ 268,262 $ 430,072 $ 400,444
Interest cost 196,904 249,496 180,529 1 58,757 174,594 409,940 282,361 468,442
Changes of benefit terms - - - - - - 3,404,969 -
Differences between expected and actual experience - 137,821 (78,468) 65,911 65,498 819,208 (526,887) 418,351
Changes of assumptions 578,039 (491,888) 1,280,343 1 ,275,769 315,113 ( 3,702,745) 460,832 (885,740)
Benefits payments and admin expenses (190,420) (220,060) (220,084) (231,815) ( 240,012) ( 304,558) (628,972) (483,520)
Net change in TLL 790,799 (160,260) 1,378,298 1 ,554,430 665,297 ( 2,509,893) 3,422,375 (82,023)
TLL - beginning of year 6,039,197 6,829,996 6,669,736 8 ,048,034 9,602,464 1 0,267,761 7,757,868 11,180,243
TLL - end of year $ 6,829,996 $ 6,669,736 $ 8,048,034 $ 9 ,602,464 $ 1 0,267,761 $ 7 ,757,868 $ 11,180,243 $ 11,098,220
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 $ 9 ,602,464 $ 1 0,267,761 $ 7 ,757,868 $ 11,180,243 $ 11,098,220
PFNP as a % of TLL 0% 0% 0% 0% 0% 0% 0% 0%
Covered employee payroll - * N/A N/A N/A N/A N/A N/A N/A N/A
NLL as a % of covered payroll N/A N/A N/A N/A N/A 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 1 0 5 5 5 5 6 5
The schedules is presented to illustrate the requirements to show information for 10 years. However, until a full 10-year trend is compiled, pension plans should present information for those years for which the
information is available.
135

QUEEN ANNE'S COUNTY, MARYLAND
LENGTH OF SERVICE AWARD PROGRAM (LOSAP)
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
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
2021 None
2022 None
2023 None
2024 Monthly benefit increased from $6 to $10, vesting
requirement increased from 5-years to 10-years,
terminated-vested members <= 10 years of service paid
PVAB via lump sum
2025 None
Changes of assumptions - fiscal year
2018 None, other than discount rate
2019 None, other than discount rate
2020 None, other than discount rate
2021 None, other than discount rate
2022 None, other than discount rate
2023 None, other than discount rate
2024 None, other than discount rate
2025 None, other than discount rate
Discount rate - measurement date
December 31, 2017 3.31%
December 31, 2018 3.71%
December 31, 2019 2.75%
December 31, 2020 2.00%
December 31, 2021 1.84%
December 31, 2022 4.05%
December 31, 2023 3.79%
December 31, 2024 4.28%
136

O S I
THER UPPLEMENTARY NFORMATION
137

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.
138

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.
139

NON-MAJOR GOVERNMENTAL FUNDS
Non-major governmental funds are special revenue funds, unless otherwise noted:
Department of Aging – This fund accounts for activities funded primarily by grants to provide services for
the elderly and is included in the social services function.
Housing and Community Services – This fund accounts for activities funded mostly by grants and
revolving loan funds that support housing rehabilitation and home-ownership and is included in the
economic and community development function.
Revolving Loan Fund – This fund accounts for activities funded by community donations and grants to
promote and provide economic development loans to local businesses and is included in the economic and
community development function.
Economic Development Incentive Fund – This fund accounts for activities funded with a portion of
recordation taxes that support economic development in the County by attracting and investing in new and
existing businesses and is included in the economic and community development function.
Roads Operation Fund – This fund accounts financial resources received from the State, plus a substantial
amount from the County, for the maintenance of County road infrastructure.
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.
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.
140

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.
Community Reinvestment and Repair Fund – This fund, created under the 2023 Cannabis Reform Act,
directs a portion of adult-use cannabis tax revenue to local jurisdictions to support community-based
programs that benefit low-income communities and those disproportionately impacted by past cannabis law
enforcement.
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.
141

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
June 30, 2025
COMMUNITY
HOUSING AND ECONOMIC PARTNERSHIPS
DEPARTMENT COMMUNITY REVOLVING DEVELOPMENT ROADS FOR
OF AGING SERVICES LOAN FUND INCENTIVE OPERATING CHILDREN
ASSETS
Cash and Cash Equivalents $ - $ 5,164,923 $ 15,000 $ 1,109,684 $ 215,240 $ 253,602
Prepaid Items - - - - - -
Receivables
Taxes Receivable (Net) - - - - - -
Accounts Receivable (Net) - 519 - - 61,042 -
Loans Receivable (Net) - 6,647,194 75,000 - - -
Special Assessments (Net) - - - - - -
Due from Other Governments 353,946 233,955 - - 619,544 267,782
Inventory - - - - 1,223,652 -
Total Assets $ 353,946 $ 12,046,591 $ 90,000 $ 1,109,684 $ 2,119,478 $ 521,384
LIABILITIES
Accrued Liabilities $ 165,630 $ 28,696 $ - $ - $ 288,560 $ 131,960
Due to Other Funds 59,184 - - - - -
Due to Component Units - - - - - -
Due to Other Governmental Agencies - 3,136 - - - 328,359
Unearned Revenue - 140,382 - - 503,543 -
Total Liabilities 224,814 172,214 - - 792,103 460,319
DEFERRED INFLOWS OF RESOURCES
Unavailable Benefit Assessments - - - - - -
Unavailable Fees - - - - - -
Total Deferred Inflows - - - - - -
Total Liabilities and Deferred Inflows 224,814 172,214 - - 792,103 460,319
FUND BALANCES
Nonspendable - - - - 1,223,652 -
Restricted 955 2,892,815 - - - -
Committed - 8,981,562 90,000 1,109,684 - -
Assigned 128,177 - - - 103,723 61,065
Unassigned - - - - - -
Total Fund Balances 129,132 11,874,377 90,000 1,109,684 1,327,375 61,065
Total Liabilities, Deferred Inflows
and Fund Balances $ 353,946 $ 12,046,591 $ 90,000 $ 1,109,684 $ 2,119,478 $ 521,384
142

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
June 30, 2025
(CONTINUED)
SHERIFF'S
DRUG DREDGING
CRITICAL LAW TASK INMATE AGRICULTURAL RURAL SPECIAL
AREAS LIBRARY FORCE WELFARE TRANSFER LEGACY ASSESSMENTS
$ 397,582 $ 614,034 $ 188,196 $ 160,286 $ 1,644,544 $ 480,221 $ 15,040
- - - - - - -
- - - - - - -
- 5,087 - 1,224 - 65 1
- - - - - - -
- - - - - - 511,885
- - - - - - -
- - - - - - -
$ 397,582 $ 619,121 $ 188,196 $ 161,510 $ 1,644,544 $ 480,286 $ 526,926
$ - $ 443 $ 55,467 $ 1,215 $ 36,477 $ 6,800 $ 1,006,624
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- 443 55,467 1,215 36,477 6,800 1,006,624
- - - - - - 511,885
- - - - - - -
- - - - - - 511,885
- 443 55,467 1,215 36,477 6,800 1,518,509
- - - - - - -
397,582 - 132,729 160,295 1,608,067 473,486 15,041
- - - - - - -
- 618,678 - - - - -
- - - - - - (1,006,624)
397,582 618,678 132,729 160,295 1,608,067 473,486 (991,583)
$ 397,582 $ 619,121 $ 188,196 $ 161,510 $ 1,644,544 $ 480,286 $ 526,926
CONTINUED
143

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
June 30, 2025
(CONTINUED)
COMMUNITY CAPITAL PROJECTS
REINVESTMENT PARKS AND TOTAL
KENT AND REPAIR SCHOOL FIRE COMPANY RECREATION NON-MAJOR
NARROWS COMMISSION IMPACT FEES IMPACT FEES IMPACT FEES GOVERNMENTAL
ASSETS
Cash and Cash Equivalents $ 204,537 $ 726,277 $ 13,034,930 $ 341,375 $ 1,135,594 $ 2 5,701,065
Prepaid Items - - - - - -
Receivables
Taxes Receivable (Net) - - - - - -
Accounts Receivable (Net) - - - - - 6 7,938
Loans Receivable (Net) - - 31,825 3,658 3,525 6 ,761,202
Special Assessments (Net) - - - - - 5 11,885
Due from Other Governments - 25,267 - - - 1 ,500,494
Inventory - - - - - 1 ,223,652
Total Assets $ 204,537 $ 751,544 $ 13,066,755 $ 345,033 $ 1,139,119 $ 3 5,766,236
LIABILITIES
Accrued Liabilities $ - $ 24,985 $ - $ - $ - $ 1 ,746,857
Due to Other Funds - - - - - 5 9,184
Due to Component Units - - - - - -
Due to Other Governmental Agencies - - - - - 3 31,495
Unearned Revenue - - - - - 6 43,925
Total Liabilities - 24,985 - - - 2 ,781,461
DEFERRED INFLOWS OF RESOURCES
Unavailable Benefit Assessments - - - - - 5 11,885
Unavailable Fees - - 31,825 3,658 3,525 3 9,008
Total Deferred Inflows - - 31,825 3,658 3,525 5 50,893
Total Liabilities and Deferred Inflows - 24,985 31,825 3,658 3,525 3 ,332,354
FUND BALANCES
Nonspendable - - - - - 1 ,223,652
Restricted 204,537 726,559 - - - 6 ,612,066
Committed - - 13,034,930 341,375 1,135,594 2 4,693,145
Assigned - - - - - 9 11,643
Unassigned - - - - - (1,006,624)
Total Fund Balances 204,537 726,559 13,034,930 341,375 1,135,594 3 2,433,882
Total Liabilities, Deferred Inflows
and Fund Balances $ 204,537 $ 751,544 $ 13,066,755 $ 345,033 $ 1,139,119 $ 3 5,766,236
144

145

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, 2025
COMMUNITY
HOUSING AND ECONOMIC PARTNERSHIPS
DEPARTMENT COMMUNITY REVOLVING DEVELOPMENT ROADS FOR
OF AGING SERVICES LOAN FUND INCENTIVE OPERATING CHILDREN
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ -
Recordation Taxes - 2 93,301 - - - -
State Shared Taxes - - - - 1 ,796,990 -
Licenses and Permits - - - - - -
Intergovernmental 1 ,327,393 3 99,563 - - - 7 21,770
Charges for Current Services 4 9,624 - - - 4 12,401 -
Fines and Forfeitures - - - - - -
Investment Income 1 0,802 5 2,262 - - - 2
Donations 3 4,010 - - - - 1 ,000
Miscellaneous 6 00 - - 9 3,976 3 ,919 6 ,710
Total Revenues 1 ,422,429 7 45,126 - 9 3,976 2 ,213,310 7 29,482
EXPENDITURES
Current
General Government - - - - - -
Public Safety - - - - - -
Public Works - - - - 6 ,200,506 -
Parks & Recreation - - - - - -
Health & Social Services 4 ,260,474 - - - - 1 ,430,801
Conservation of Natural Resources - - - - - -
Economic/Community Development - 1 ,086,968 - 1 59,333 - -
Capital Outlay 2 0,715 - - - 9 9,028 -
Debt Service
Principal - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 4 ,281,189 1 ,086,968 - 1 59,333 6 ,299,534 1 ,430,801
Excess of Revenues Over (Under) Expenditures (2,858,760) (341,842) - (65,357) (4,086,224) (701,319)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals 4 3 - - - 23,860 -
Insurance Proceeds 2 52 5 ,421 - - 5,201 -
Transfers In 2 ,858,465 6 81,984 - - 4 ,076,825 6 95,960
Transfers Out - - - - (19,662) -
Other Financing Sources (Uses) 2 ,858,760 6 87,405 - - 4 ,086,224 6 95,960
Net Increase (Decrease) in Fund Balances - 3 45,563 - (65,357) - (5,359)
Fund Balances, July 1 1 29,132 1 1,528,814 9 0,000 1 ,175,041 1 ,327,375 6 6,424
Fund Balances, June 30 $ 1 29,132 $ 1 1,874,377 $ 9 0,000 $ 1 ,109,684 $ 1 ,327,375 $ 6 1,065
146

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, 2025
(CONTINUED)
SHERIFF'S
DRUG DREDGING
CRITICAL LAW TASK INMATE AGRICULTURAL RURAL SPECIAL
AREAS LIBRARY FORCE WELFARE TRANSFER LEGACY ASSESSMENTS
$ - $ - $ - $ - $ - $ - $ -
- - - - - - -
- - - - 6 8,967 - -
- - - - - - -
- - - - - 1 ,162,925 -
1 3,955 1 3,521 - 6 7,994 - - 4 7,669
- 3 3,650 3 ,301 - - - -
- 2 7,745 9 ,832 7 ,874 - 2 9,217 3 89
- - - - - - -
- - - 1 1,931 - - -
1 3,955 7 4,916 1 3,133 8 7,799 6 8,967 1 ,192,142 4 8,058
- 1 6,651 - - - - 1 ,006,624
- - 4 7,832 9 1,844 - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - 1 ,092,938 1 ,145,251 -
- - - - - - -
- - - - - - -
- - - - - - 4 7,816
- - - - - - -
- 1 6,651 4 7,832 9 1,844 1 ,092,938 1 ,145,251 1 ,054,440
1 3,955 5 8,265 (34,699) (4,045) (1,023,971) 4 6,891 (1,006,382)
- - - - - - -
- - - - - - -
- - - - 6 59,644 - -
- - - - - - -
- - - - 6 59,644 - -
1 3,955 5 8,265 (34,699) (4,045) (364,327) 4 6,891 (1,006,382)
3 83,627 5 60,413 1 67,428 1 64,340 1 ,972,394 4 26,595 1 4,799
$ 3 97,582 $ 6 18,678 $ 1 32,729 $ 1 60,295 $ 1 ,608,067 $ 4 73,486 $ (991,583)
CONTINUED
147

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, 2025
(CONTINUED)
COMMUNITY CAPITAL PROJECTS
REINVESTMENT PARKS AND TOTAL
KENT AND REPAIR SCHOOL FIRE COMPANY RECREATION NON-MAJOR
NARROWS COMMISSION IMPACT FEES IMPACT FEES IMPACT FEES GOVERNMENTAL
REVENUES
Taxes
Local Property Tax $ 6 1,894 $ - $ - $ - $ - $ 6 1,894
Recordation Taxes - - - - - 2 93,301
State Shared Taxes - - - - - 1 ,865,957
Licenses and Permits - - - - - -
Intergovernmental - 8 09,061 - - - 4 ,420,712
Charges for Current Services - - 2 ,075,142 2 81,292 2 28,518 3 ,190,116
Fines and Forfeitures - - - - - 3 6,951
Investment Income 1 2,217 - 6 27,774 2 0,193 4 7,226 8 45,533
Donations - - - - - 3 5,010
Miscellaneous - - - - - 1 17,136
Total Revenues 7 4,111 8 09,061 2 ,702,916 3 01,485 2 75,744 1 0,866,610
EXPENDITURES
Current
General Government - - - - - 1 ,023,275
Public Safety - - - 4 04,877 - 5 44,553
Public Works - - - - - 6 ,200,506
Parks & Recreation - - - - - -
Health & Social Services - - - - - 5 ,691,275
Conservation of Natural Resources - 82,502 - - - 2 ,320,691
Economic/Community Development 1 27,000 - - - - 1 ,373,301
Capital Outlay - - - - - 1 19,743
Debt Service
Principal - - - - - 4 7,816
Interest and Fiscal Charges - - - - - -
Total Expenditures 1 27,000 8 2,502 - 4 04,877 - 1 7,321,160
Excess of Revenues Over (Under) Expenditures (52,889) 7 26,559 2 ,702,916 (103,392) 2 75,744 (6,454,550)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - 2 3,903
Insurance Proceeds - - - - - 1 0,874
Transfers In - - - 3 9,891 - 9 ,012,769
Transfers Out - - (2,167,290) - - (2,186,952)
Other Financing Sources (Uses) - - (2,167,290) 3 9,891 - 6 ,860,594
Net Increase (Decrease) in Fund Balances (52,889) 7 26,559 5 35,626 (63,501) 2 75,744 4 06,044
Fund Balances, July 1 2 57,426 - 1 2,499,304 4 04,876 8 59,850 3 2,027,838
Fund Balances, June 30 $ 2 04,537 $ 7 26,559 $ 1 3,034,930 $ 3 41,375 $ 1 ,135,594 $ 3 2,433,882
148

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, 2025
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 - - - - 200,000 200,000 293,301 93,301
State Shared Taxes - - - - - - - -
Licenses and Permits - - - - - - - -
Intergovernmental 1,197,259 1,287,227 1,327,393 40,166 234,867 667,929 399,563 ( 268,366)
Charges for Current Services 68,000 68,000 49,624 ( 18,376) 400,000 400,000 - ( 400,000)
Fines and Forfeitures - - - - - - - -
Investment Income - - 10,802 10,802 - - 52,262 52,262
Donations 35,000 35,000 34,010 ( 990) - - - -
Miscellaneous 33,600 33,600 600 ( 33,000) - - - -
Total Revenues 1,333,859 1,423,827 1,422,429 ( 1,398) 834,867 1,267,929 745,126 ( 522,803)
EXPENDITURES
Current
General Government - - - - - - - -
Public Safety - - - - - - - -
Public Works - - - - - - - -
Parks & Recreation - - - - - - - -
Health and Social Services 4,069,408 4,269,544 4,260,474 9,070 - - - -
Education and Library - - - - - - - -
Conservation of Natural Resources - - - - - - - -
Economic/Community Development - - - - 1,483,563 2,161,588 1,086,968 1,074,620
Intergovernmental - - - - - - - -
Miscellaneous - - - - - - - -
Capital Outlay 25,000 17,000 20,715 ( 3,715) - - - -
Debt Service
Principal - - - - - - - -
Interest - - - - - - - -
Total Expenditures 4,094,408 4,286,544 4,281,189 5,355 1,483,563 2,161,588 1,086,968 1,074,620
Excess of Revenues Over
(Under) Expenditures ( 2,760,549) ( 2,862,717) ( 2,858,760) 3,957 ( 648,696) ( 893,659) ( 341,842) 551,817
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - 43 43 - - - -
Insurance Proceeds - - 252 252 - - 5,421 5,421
Transfers In 2,760,549 2,862,717 2,858,465 ( 4,252) 648,696 693,659 681,984 ( 11,675)
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) 2,760,549 2,862,717 2,858,760 ( 3,957) 648,696 693,659 687,405 ( 6,254)
Net Increase (Decrease) in Fund Balances $ - $ - $ - $ - $ - $ ( 200,000) $ 345,563 $ 545,563
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, 2025
(CONTINUED)
ECONOMIC DEVELOPMENT INCENTIVE ROADS OPERATING
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 - - - - 1,828,971 1,828,971 1,796,990 ( 31,981)
Licenses and Permits - - - - - - - -
Intergovernmental - - - - - - - -
Charges for Current Services - - - - 95,000 95,000 412,401 317,401
Fines and Forfeitures - - - - - - - -
Investment Income - - - - - - - -
Donations - - - - - - - -
Miscellaneous 27,100 37,100 93,976 56,876 - - 3,919 3,919
Total Revenues 27,100 37,100 93,976 56,876 1,923,971 1,923,971 2,213,310 289,339
EXPENDITURES
Current
General Government - - - - - - - -
Public Safety - - - - - - - -
Public Works - - - - 6,594,491 6,804,350 6,200,506 603,844
Parks & Recreation - - - - - - - -
Health and Social Services - - - - - - - -
Education and Library - - - - - - - -
Conservation of Natural Resources - - - - - - - -
Economic/Community Development 150,000 160,000 159,333 667 - - - -
Intergovernmental - - - - - - - -
Miscellaneous - - - - - - - -
Capital Outlay - - - - 140,000 140,000 99,028 40,972
Debt Service
Principal - - - - - - - -
Interest - - - - - - - -
Total Expenditures 150,000 160,000 159,333 667 6,734,491 6,944,350 6,299,534 644,816
Excess of Revenues Over
(Under) Expenditures ( 122,900) ( 122,900) ( 65,357) 57,543 ( 4,810,520) ( 5,020,379) ( 4,086,224) 934,155
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - 23,860 23,860
Insurance Proceeds - - - - - - 5,201 5,201
Transfers In - - - - 4,810,520 5,020,379 4,076,825 ( 943,554)
Transfers Out - - - - - - ( 19,662) ( 19,662)
Total Other Financing Sources (Uses) - - - - 4,810,520 5,020,379 4,086,224 ( 934,155)
Net Increase (Decrease) in Fund Balances $ ( 122,900) $ ( 122,900) $ ( 65,357) $ 57,543 $ - $ - $ - $ -
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, 2025
(CONTINUED)
COMMUNITY PARTNERSHIPS FOR CHILDREN LAW LIBRARY
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Licenses and Permits - - - - - - - -
Intergovernmental 708,427 800,927 721,770 ( 79,157) - - - -
Charges for Current Services - - - - 10,000 10,000 13,521 3,521
Fines and Forfeitures - - - - 15,500 15,500 33,650 18,150
Investment Income - - 2 2 - - 27,745 27,745
Donations - - 1,000 1,000 - - - -
Miscellaneous 12,500 12,500 6,710 ( 5,790) - - - -
Total Revenues 720,927 813,427 729,482 ( 83,945) 25,500 25,500 74,916 49,416
EXPENDITURES
Current
General Government - - - - 25,500 25,500 16,651 8,849
Public Safety - - - - - - - -
Public Works - - - - - - - -
Parks & Recreation - - - - - - - -
Health and Social Services 1,270,660 1,509,387 1,430,801 78,586 - - - -
Education and Library - - - - - - - -
Conservation of Natural Resources - - - - - - - -
Economic/Community Development - - - - - - - -
Intergovernmental - - - - - - - -
Miscellaneous - - - - - - - -
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Interest - - - - - - - -
Total Expenditures 1,270,660 1,509,387 1,430,801 78,586 25,500 25,500 16,651 8,849
Excess of Revenues Over
(Under) Expenditures ( 549,733) ( 695,960) ( 701,319) ( 5,359) - - 58,265 58,265
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In 549,733 695,960 695,960 - - - - -
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) 549,733 695,960 695,960 - - - - -
Net Increase (Decrease) in Fund Balances $ - $ - $ ( 5,359) $ ( 5,359) $ - $ - $ 58,265 $ 58,265
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, 2025
(CONTINUED)
INMATE WELFARE ARGICULTURAL TRANSFER
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - 125,000 125,000 68,967 ( 56,033)
Licenses and Permits - - - - - - - -
Intergovernmental 10,890 10,890 - ( 10,890) - - - -
Charges for Current Services 95,000 95,000 67,994 ( 27,006) - - - -
Fines and Forfeitures - - - - - - - -
Investment Income - - 7,874 7,874 - - - -
Donations - - - - - - - -
Miscellaneous 16,310 16,310 11,931 ( 4,379) - - - -
Total Revenues 122,200 122,200 87,799 ( 34,401) 125,000 125,000 68,967 ( 56,033)
EXPENDITURES
Current
General Government - - - - - - - -
Public Safety 118,150 118,150 91,844 26,306 - - - -
Public Works - - - - - - - -
Parks & Recreation - - - - - - - -
Health and Social Services - - - - - - - -
Education and Library - - - - - - - -
Conservation of Natural Resources - - - - 5,068,102 5,727,746 1,092,938 4,634,808
Economic/Community Development - - - - - - - -
Intergovernmental - - - - - - - -
Miscellaneous - - - - - - - -
Capital Outlay 15,000 15,000 - 15,000 - - - -
Debt Service
Principal - - - - - - - -
Interest - - - - - - - -
Total Expenditures 133,150 133,150 91,844 41,306 5,068,102 5,727,746 1,092,938 4,634,808
Excess of Revenues Over
(Under) Expenditures ( 10,950) ( 10,950) ( 4,045) 6,905 ( 4,943,102) ( 5,602,746) ( 1,023,971) 4,578,775
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In - - - - - 659,644 659,644 -
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) - - - - - 659,644 659,644 -
Net Increase (Decrease) in Fund Balances $ ( 10,950) $ ( 10,950) $ ( 4,045) $ 6,905 $ ( 4,943,102) $ ( 4,943,102) $ ( 364,327) $ 4,578,775
CONTINUED
153

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, 2025
(CONTINUED)
RURAL LEGACY DREDGING SPECIAL ASSESSMENTS
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Licenses and Permits - - - - - - - -
Intergovernmental 2,437,399 2,437,399 1,162,925 ( 1,274,474) - - - -
Charges for Current Services - - - - 47,816 47,816 47,669 ( 147)
Fines and Forfeitures - - - - - - - -
Investment Income - - 29,217 29,217 - - 389 389
Donations - - - - - - - -
Miscellaneous - - - - - 1,050,000 - ( 1,050,000)
Total Revenues 2,437,399 2,437,399 1,192,142 ( 1,245,257) 47,816 1,097,816 48,058 ( 1,049,758)
EXPENDITURES
Current
General Government - - - - - 1,050,000 1,006,624 43,376
Public Safety - - - - - - - -
Public Works - - - - - - - -
Parks & Recreation - - - - - - - -
Health and Social Services - - - - - - - -
Education and Library - - - - - - - -
Conservation of Natural Resources 2,437,399 2,437,399 1,145,251 1,292,148 - - - -
Economic/Community Development - - - - - - - -
Intergovernmental - - - - - - - -
Miscellaneous - - - - - - - -
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - 47,816 47,816 47,816 -
Interest - - - - - - - -
Total Expenditures 2,437,399 2,437,399 1,145,251 1,292,148 47,816 1,097,816 1,054,440 43,376
Excess of Revenues Over
(Under) Expenditures - - 46,891 46,891 - - ( 1,006,382) ( 1,006,382)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In - - - - - - - -
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) - - - - - - - -
Net Increase (Decrease) in Fund Balances $ - $ - $ 46,891 $ 46,891 $ - $ - $ ( 1,006,382) $ ( 1,006,382)
154

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, 2025
(CONTINUED)
KENT NARROWS FUND COMMUNITY REINVESTMENT AND REPAIR COMMISSION
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ 61,000 $ 61,000 $ 61,894 $ 894 $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Licenses and Permits - - - - - - - -
Intergovernmental - - - - - 90,000 809,061 719,061
Charges for Current Services - - - - - - - -
Fines and Forfeitures - - - - - - - -
Investment Income - 8,233 12,217 3,984 - - - -
Donations - - - - - - - -
Miscellaneous - - - - - - - -
Total Revenues 61,000 69,233 74,111 4,878 - 90,000 809,061 719,061
EXPENDITURES
Current
General Government - - - - - - - -
Public Safety - - - - - - - -
Public Works - - - - - - - -
Parks & Recreation - - - - - - - -
Health and Social Services - - - - - - - -
Education and Library - - - - - - - -
Conservation of Natural Resources - - - - - 90,000 82,502 7,498
Economic/Community Development 61,000 127,000 127,000 - - - - -
Intergovernmental - - - - - - - -
Miscellaneous - - - - - - - -
Capital Outlay - - - - - - - -
Debt Service -
Principal - - - - - - - -
Interest - - - - - - - -
Total Expenditures 61,000 127,000 127,000 - - 90,000 82,502 7,498
Excess of Revenues Over
(Under) Expenditures - ( 57,767) ( 52,889) 4,878 - - 726,559 726,559
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In - - - - - - - -
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) - - - - - - - -
Net Increase (Decrease) in Fund Balances $ - $ ( 57,767) $ ( 52,889) $ 4,878 $ - $ - $ 726,559 $ 726,559
CONTINUED
155

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, 2025
(CONTINUED)
CAPITAL PROJECTS - SCHOOL IMPACT FEES CAPITAL PROJECTS - FIRE COMPANY IMPACT FEES
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Licenses and Permits - - - - - - - -
Intergovernmental - - - - - - - -
Charges for Current Services 2,097,290 2,097,290 2,075,142 ( 22,148) 306,500 209,656 281,292 71,636
Fines and Forfeitures - - - - - - - -
Investment Income 70,000 70,000 627,774 557,774 9,800 9,800 20,193 10,393
Donations - - - - - - - -
Miscellaneous - - - - - - - -
Total Revenues 2,167,290 2,167,290 2,702,916 535,626 316,300 219,456 301,485 82,029
EXPENDITURES
Current
General Government - - - - - - - -
Public Safety - - - - 406,300 406,300 404,877 1,423
Public Works - - - - - - - -
Parks & Recreation - - - - - - - -
Health and Social Services - - - - - - - -
Education and Library - - - - - - - -
Conservation of Natural Resources - - - - - - - -
Economic/Community Development - - - - - - - -
Intergovernmental - - - - - - - -
Miscellaneous - - - - - - - -
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Interest - - - - - - - -
Total Expenditures - - - - 406,300 406,300 404,877 1,423
Excess of Revenues Over
(Under) Expenditures 2,167,290 2,167,290 2,702,916 535,626 ( 90,000) ( 186,844) ( 103,392) 83,452
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In - - - - 90,000 90,000 39,891 ( 50,109)
Transfers Out ( 2,167,290) ( 2,167,290) ( 2,167,290) - - - - -
Total Other Financing Sources (Uses) ( 2,167,290) ( 2,167,290) ( 2,167,290) - 90,000 90,000 39,891 ( 50,109)
Net Increase (Decrease) in Fund Balances $ - $ - $ 535,626 $ 535,626 $ - $ ( 96,844) $ ( 63,501) $ 33,343
156

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, 2025
(CONTINUED)
CAPITAL PROJECTS - PARKS & RECREATION IMPACT FEES
VARIANCE
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ -
Recordation Taxes - - - -
State Shared Taxes - - - -
Licenses and Permits - - - -
Intergovernmental - - - -
Charges for Current Services 2 99,600 2 99,600 2 28,518 (71,082)
Fines and Forfeitures - - - -
Investment Income 4 00 4 00 4 7,226 4 6,826
Donations - - - -
Miscellaneous - - - -
Total Revenues 3 00,000 3 00,000 2 75,744 (24,256)
EXPENDITURES
Current
General Government - - - -
Public Safety - - - -
Public Works - - - -
Parks & Recreation - - - -
Health and Social Services - - - -
Education and Library - - - -
Conservation of Natural Resources - - - -
Economic/Community Development - - - -
Intergovernmental - - - -
Miscellaneous - - - -
Capital Outlay - - - -
Debt Service
Principal - - - -
Interest - - - -
Total Expenditures - - - -
Excess of Revenues Over
(Under) Expenditures 3 00,000 3 00,000 2 75,744 (24,256)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - -
Insurance Proceeds - - - -
Transfers In - - - -
Transfers Out (300,000) (300,000) - 3 00,000
Total Other Financing Sources (Uses) (300,000) (300,000) - 3 00,000
Net Increase (Decrease) in Fund Balances $ - $ - $ 2 75,744 $ 2 75,744
157

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.
158

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.
159

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
June 30, 2025
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
COURSE AND MARINAS ENTERPRISE
ASSETS
Current Assets
Equity in Pooled Cash $ 641 $ 800,287 $ 800,928
Prepaid Items 2,520 - 2,520
Accounts Receivable (Net) - 59,079 59,079
Due from Other Governments - 246,225 246,225
Inventories 9,251 - 9,251
Total Current Assets 12,412 1,105,591 1,118,003
Capital Assets 3,937,738 7,593,043 11,530,781
Less Accumulated Depreciation (887,491) (2,057,511) (2,945,002)
Total Capital Assets, Net of Depreciation 3,050,247 5,535,532 8,585,779
Total Assets 3,062,659 6,641,123 9,703,782
DEFERRED OUTFLOWS OF RESOURCES
OPEB - 3,911 3,911
Pension Benefits 65,304 132,910 198,214
Deferred Charge on Refunding - 294 294
Total Deferred Outflows of Resources 65,304 137,115 202,419
LIABILITIES
Current Liabilities
Accounts Payable 49,368 269,144 318,512
Accrued Interest Payable 1,217 6,662 7,879
Due to Other Funds 221,889 - 221,889
Unearned Revenue 9,422 - 9,422
Current Portion of Compensated Absences 11,331 34,421 45,752
Current Portion of Lease Payable 28,590 - 28,590
Current Portion of Bonds/Notes Payable 5,256 78,864 84,120
Total Current Liabilities 327,073 389,091 716,164
Noncurrent Liabilities
Compensated Absences 7,554 22,947 30,501
OPEB - 205,628 205,628
Net Pension Liability 88,018 180,966 268,984
Lease Payable 54,202 - 54,202
Bonds/Notes Payable 69,907 468,894 538,801
Total Noncurrent Liabilities 219,681 878,435 1,098,116
Total Liabilities 546,754 1,267,526 1,814,280
DEFERRED INFLOWS OF RESOURCES
OPEB - 64,214 64,214
Pension Benefits 13,026 25,534 38,560
Bond Refundings - 1,115 1,115
Total Deferred Inflows of Resources 13,026 90,863 103,889
NET POSITION
Net Investment in Capital Assets 2,892,292 4,986,953 7,879,245
Unrestricted Amounts (Deficit) (324,109) 432,896 108,787
Total Net Position $ 2,568,183 $ 5,419,849 $ 7,988,032
160

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, 2025
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
COURSE AND MARINAS ENTERPRISE
OPERATING REVENUES
Charges for Services $ 655,355 $ 451,542 $ 1,106,897
Intergovernmental - 246,225 246,225
Material Sales 70,351 - 70,351
Miscellaneous Revenues 1,033 27,749 28,782
Total Operating Revenues 726,739 725,516 1,452,255
OPERATING EXPENSES
Recreation 679,825 723,767 1,403,592
OPEB - (14,494) (14,494)
Pension Liability Adjustment (11,427) (22,296) (33,723)
Depreciation and amortization 71,641 160,045 231,686
Total Operating Expenses 740,039 847,022 1,587,061
Operating Income (Loss) (13,300) (121,506) (134,806)
NON-OPERATING REVENUES (EXPENSES)
Interest Expense (4,016) (11,100) (15,116)
Total Non-Operating (Expenses) (4,016) (11,100) (15,116)
Transfers In (Out) 4,567 - 4,567
Change in Net Position (12,749) (132,606) (145,355)
Total Net Position - Beginning of Year 2,580,932 5,552,455 8,133,387
Total Net Position - End of Year $ 2,568,183 $ 5,419,849 $ 7,988,032
161

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
COURSE AND MARINAS ENTERPRISE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 725,706 $ 483,453 $ 1,209,159
Receipts from other operating revenues 654 42,748 43,402
Payments to suppliers (459,323) (190,108) (649,431)
Payments to employees and on behalf of employees (230,525) (286,258) (516,783)
Net Cash Provided by Operating Activities 36,512 49,835 86,347
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from (to) other funds 4,567 - 4,567
(Payments) Receipts of interfund loans 35,960 - 35,960
Net Cash Provided by Noncapital Financing Activities 40,527 - 40,527
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal paid on lease and bond payables (32,958) (75,840) (108,798)
Interest paid on capital debt (4,157) (12,171) (16,328)
Acquisition and Construction of Capital Assets (39,283) (21,263) (60,546)
Net Cash Used by Capital and Related Financing Activities (76,398) (109,274) (185,672)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income - - -
Net Cash Provided (Used) by Investing Activities - - -
Net increase (decrease) in cash and cash equivalents 641 (59,439) (58,798)
Balances - Beginning of year - 859,726 859,726
Balances - End of year $ 641 $ 800,287 $ 800,928
Reconciliation of operating loss to net cash
provided by operating activities
Operating loss $ (13,300) $ (121,506) $ (134,806)
Adjustments to reconcile operating loss
to net cash provided by operating activities:
Amortization and Depreciation 71,641 160,045 231,686
Changes in assets and liabilities:
Accounts receivable, net - 31,911 31,911
Operating grants receivable - (231,226) (231,226)
Inventories and Prepaid Expenses (1,147) - (1,147)
Vendor accounts payable (7,939) 238,697 230,758
Unearned revenue collected in advance (379) - (379)
Compensated absences (937) 8,704 7,767
OPEB - (14,494) (14,494)
Net Pension Liability (11,427) (22,296) (33,723)
Net Cash Provided by Operating Activities $ 36,512 $ 49,835 $ 86,347
162

163

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.
Custodial 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 Custodial Funds are
included in this section.
164

.
CUSTODIAL FUNDS
Custodial 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.
Inmate Welfare – This fund accounts for earnings or other funds deposited into an account established for
the inmates. Inmates can use these funds to make purchases at the commissary. Any remaining funds
belonging to an inmate is paid to them upon release.
165

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2025
STATE MOTOR
TAX & TOWN VEHICLE ESCHEAT - TOTAL
DITCH ZONING TAX ADMIN ABANDONED INMATE CUSTODIAL
FUND DEPOSITS COLLECTIONS DEPOSITS PROPERTY WELFARE FUNDS
ASSETS
Cash and Cash Equivalents $ 1 83,862 $ 9 88,862 $ 2 44,875 $ - $ 6 2,732 $ 2 9,188 $ 1 ,509,519
Total Assets $ 1 83,862 $ 9 88,862 $ 2 44,875 $ - $ 6 2,732 $ 2 9,188 $ 1 ,509,519
LIABILITIES
Accounts Payable and Other Liabilities $ - $ - $ - $ - $ - $ 1 ,259 $ 1 ,259
Due to Other Governments - - 2 44,875 - 6 2,732 - 3 07,607
Total Liabilities $ - $ - $ 2 44,875 $ - $ 6 2,732 $ 1 ,259 $ 3 08,866
NET POSITION
Restricted for:
Individuals, Organizations, and
other Governments $ 1 83,862 $ 9 88,862 $ - $ - $ - $ 2 7,929 $ 1 ,200,653
166

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
STATE MOTOR
TAX & TOWN VEHICLE ESCHEAT - TOTAL
DITCH ZONING TAX ADMIN ABANDONED INMATE CUSTODIAL
FUND DEPOSITS COLLECTIONS DEPOSITS PROPERTY WELFARE FUNDS
ADDITIONS
Tax Ditch $ 35,918 $ - $ - $ - $ - $ - $ 35,918
Zoning Deposits - 206,531 - - - - 206,531
Tax Collections for Other Governments - - 1 7,895,321 - - - 1 7,895,321
Motor Vehicle Administration - - - 233,820 - - 233,820
Escheat - Abandoned Property - - - - 62,732 - 62,732
Inmate Welfare - - - - - 99,806 99,806
Total Additions 35,918 206,531 1 7,895,321 233,820 62,732 99,806 1 8,534,128
DEDUCTIONS
Distribution of Tax Ditch Funds 37,800 - - - - - 37,800
Refund of Zoning Deposits - 81,079 - - - - 81,079
Payments of Tax to Other Governments - - 1 7,895,321 - - - 1 7,895,321
Payments to Motor Vehicle Administration - - - 233,820 - - 233,820
Payments of Escheat to Others - - - - 62,732 - 62,732
Distribution of Inmate Welfare Funds - - - - - 108,298 108,298
Total Deductions 37,800 81,079 1 7,895,321 233,820 62,732 108,298 1 8,419,050
Net increase (decrease) in Fiduciary Net Position ( 1,882) 125,452 - - - ( 8,492) 115,078
Net Position-Beginning of Year 185,744 863,410 - - - 36,421 1 ,085,575
Net Position-End of Year $ 1 83,862 $ 9 88,862 $ - $ - $ - $ 27,929 $ 1 ,200,653
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, 2025 (with Summarized Totals as of June 30, 2024)
Fed/State Total Returned 2024
GOCCP Community Reinvestment 2025 Summarized
Admin GOC Partnerships Fund Total Total
ASSETS
Cash and cash equivalents $ 1 17,905 $ 1 25,207 $ 2 43,112 $ 1 0,490 $ 2 53,602 $ 1 95,076
Accounts receivable - - - - - 1 9,155
Due from State governmental agencies - 2 67,782 2 67,782 - 2 67,782 3 63,017
Total Assets $ 1 17,905 $ 3 92,989 $ 5 10,894 $ 1 0,490 $ 5 21,384 $ 5 77,248
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued expenditures 23,629 $ 1 08,331 $ 1 31,960 $ - $ 1 31,960 $ 1 27,422
Due to Component Units - - - - - 7 0,038
Due to State governmental agencies 4 5,527 2 82,832 3 28,359 - 3 28,359 3 13,364
Total Liabilities 6 9,156 3 91,163 4 60,319 - 4 60,319 5 10,824
FUND BALANCES
Assigned 4 8,749 1 ,826 5 0,575 1 0,490 6 1,065 6 6,424
Total Fund Balances 4 8,749 1 ,826 5 0,575 1 0,490 6 1,065 6 6,424
Total Liabilities and Fund Balances $ 1 17,905 $ 3 92,989 $ 5 10,894 $ 1 0,490 $ 5 21,384 $ 5 77,248
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, 2025 (with Summarized Totals for Year Ended June 30, 2024)
Federal/State GOCCP/GOC
Healthy MD
Community Achievement Local Transportation Fam/Home Family After School Community
Administrative Support Mentoring Care Team Voucher Visiting Navigators Opportunity Mentoring
REVENUES
CPA
Intergovernmental
GOC $ 5 2,091 $ 1 1,485 $ 5 3,942 $ 4 6,398 $ 4 5,469 $ 7 5,618 $ 4 2,804 $ - $ 8 6,244
Subtotal CPA 5 2,091 1 1,485 5 3,942 4 6,398 4 5,469 7 5,618 4 2,804 - 8 6,244
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - - - - - - - - -
GOC - non-CPA - - - - - - - - -
State GOCCP - non-CPA - - - - - - - - -
Other State Grant Funding - - - - - 2 18,762 - - -
Investment Income - - - - - - - - -
Donations 1 ,000 - - - - - - - -
Miscellaneous (1,846) - - - - - - - -
Subtotal Non-CPA (846) - - - - 2 18,762 - - -
Total Revenues 5 1,245 1 1,485 5 3,942 4 6,398 4 5,469 2 94,380 4 2,804 - 8 6,244
EXPENDITURES
CPA
Program Contracted Services - - - - - - - - -
Other Expenditures
Salaries 4 5,737 - - 3 3,548 1 4,258 - - - -
Fringe Benefit Costs 3 ,794 - - 1 2,850 1 ,211 - - - -
Auditing - - 8 17 - - - - - 3 ,000
Consultants - 5 ,615 - - - - - - -
Equipment Rental 7 47 - - - - - - - -
Other Contracted Services - - - - - - 3 9,188 - 1 3,034
Postage - - - - - - 2 02 - -
Office Supplies - - - - - 2 73 - - 2 99
Program Supplies - - 1 ,858 - 3 0,000 1 ,415 5 34 - 4 ,085
Food - - - - - - - - 5 ,839
Printing and Publishing - - - - - 1 8 - - 2 30
Data Processing Supplies - - - - - 9 ,679 - - -
Repairs and Equipment - - - - - - 1 ,056 - -
Business Travel - - 2 ,415 - - - 9 11 - 1 ,782
Subscriptions and Dues 1 ,813 - - - - - - - -
Meetings & Conferences - - - - - - - - 1 71
Training - - - - - 1 00 1 84 - -
Advertising - - - - - - 1 69 - -
Communications - - 7 5 - - 5 81 5 60 - 9 60
Rent - - - - - - - - -
Equipment under $1000/$500 - - - - - - - - -
Other Charges - 5 ,870 4 8,777 - - 6 3,552 - - 5 6,844
Subtotal CPA Expenditures 5 2,091 1 1,485 5 3,942 4 6,398 4 5,469 7 5,618 4 2,804 - 8 6,244
Non-CPA
Program Contracted Services - - - - - - - - -
Other Expenditures
Salaries 2 11,887 - - 4 61 8 ,415 - - - -
Fringe Benefit Costs 9 4,133 - - 5 ,329 1 0,908 - - - -
Consultants 6 ,000 - - - - - - - -
Equipment Rental 2 ,581 - - - - - - - -
Other Contracted Services - - - - - 2 18,762 - - -
Postage 1 21 - - - - - - - -
Office Supplies 1 ,672 - - - - - - - -
Program Supplies 1 0,746 - - - 2 0 - - - -
Food 2 ,047 - - - - - - - -
Data Processing Supplies - - - - - - - - -
Business Travel - - - - - - - - -
Subscriptions and Dues 5 ,000 - - - - - - - -
Meetings & Conferences 2 ,661 - - - - - - - -
Training 7 05 - - - - - - - -
Board's Expenditures 4 ,494 - - - - - - - -
Advertising - - - - - - - - -
Marketing/Promotions - - - - - - - - -
Communications 1 ,278 - - - - - - - -
Equipment under $1,000/$500 - - - - - - - - -
Other Charges 1 1,138 - - - - - - 2 50,000 -
Subtotal Non-CPA Expenditures 3 54,463 - - 5 ,790 1 9,343 2 18,762 - 2 50,000 -
Total Expenditures 4 06,554 1 1,485 5 3,942 5 2,188 6 4,812 2 94,380 4 2,804 2 50,000 8 6,244
Excess of Revenues Over (Under) Expenditures (355,309) - - (5,790) (19,343) - - (250,000) -
OTHER FINANCING SOURCES
Transfers In for:
Program Contracted Services 3 49,948 - - 5 ,790 1 9,343 - - 2 50,000 -
Other Financing Sources 3 49,948 - - 5 ,790 1 9,343 - - 2 50,000 -
Net Increase in Fund Balances $ (5,361) $ - $ - $ - $ - $ - $ - $ - $ -
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, 2025 (with Summarized Totals for Year Ended June 30, 2024)
(CONTINUED)
Federal/State GOCCP/GOC State Federal
GOCCP/GOC State GOC GOCCP GOCCP
Character Operating Fund All Programs CPA Non-CPA Non-CPA Youth
Counts ENOUGH Total Subtotal Subtotal Subtotal Subtotal Strategies
$ - $ - $ 3 61,960 $ 4 14,051 $ 4 14,051 $ - $ - $ -
- - 3 61,960 4 14,051 4 14,051 - - -
- - - - - - - -
- 8 8,957 8 8,957 8 8,957 - 8 8,957 - -
- - - - - - - -
- - 2 18,762 2 18,762 - - - -
- - - - - - - -
- - - 1 ,000 - - - -
8 ,556 - 8 ,556 6 ,710 - - - -
8 ,556 8 8,957 3 16,275 3 15,429 - 8 8,957 - -
8 ,556 8 8,957 6 78,235 7 29,480 4 14,051 8 8,957 - -
- - - - - - - -
- - 4 7,806 9 3,543 9 3,543 - - -
- - 1 4,061 1 7,855 1 7,855 - - -
- - 3 ,817 3 ,817 3 ,817 - - -
- - 5 ,615 5 ,615 5 ,615 - - -
- - - 7 47 7 47 - - -
- - 5 2,222 5 2,222 5 2,222 - - -
- - 2 02 2 02 2 02 - - -
- - 5 72 5 72 5 72 - - -
- - 3 7,892 3 7,892 3 7,892 - - -
- - 5 ,839 5 ,839 5 ,839 - - -
- - 2 48 2 48 2 48 - - -
- - 9 ,679 9 ,679 9 ,679 - - -
- - 1 ,056 1 ,056 1 ,056 - - -
- - 5 ,108 5 ,108 5 ,108 - - -
- - - 1 ,813 1 ,813 - - -
- - 1 71 1 71 1 71 - - -
- - 2 84 2 84 2 84 - - -
- - 1 69 1 69 1 69 - - -
- - 2 ,176 2 ,176 2 ,176 - - -
- - - - - - - -
- - - - - - - -
- - 1 75,043 1 75,043 1 75,043 - - -
- - 3 61,960 4 14,051 4 14,051 - - -
- - - - - - - -
5 4,388 - 6 3,264 2 75,151 - - - -
1 0,526 - 2 6,763 1 20,896 - - - -
- 8 ,500 8 ,500 1 4,500 - 8 ,500 - -
- - - 2 ,581 - - - -
- 3 0,000 2 48,762 2 48,762 - 3 0,000 - -
- - - 1 21 - - - -
5 48 - 5 48 2 ,220 - - - -
1 8 - 3 8 1 0,784 - - - -
- - - 2 ,047 - - - -
- 1 5,000 1 5,000 1 5,000 - 1 5,000 - -
- - - - - - - -
3 97 - 3 97 5 ,397 - - - -
8 ,556 1 5,457 2 4,013 2 6,674 - 1 5,457 - -
- - - 7 05 - - - -
- - - 4 ,494 - - - -
- - - - - - - -
5 ,002 - 5 ,002 5 ,002 - - - -
- - - 1 ,278 - - - -
- - - - - - - -
- 2 0,000 2 70,000 2 81,138 - 2 0,000 - -
7 9,435 8 8,957 6 62,287 1 ,016,750 - 8 8,957 - -
7 9,435 8 8,957 1 ,024,247 1 ,430,801 4 14,051 8 8,957 - -
(70,879) - (346,012) (701,321) - - - -
-
7 0,879 - 3 46,012 6 95,960 - - - -
7 0,879 - 3 46,012 6 95,960 - - - -
$ - $ - $ - (5,361) - - - -
5 5,936 6 05,781 (1,679,233) 3 ,491 (25,474)
$ 5 0,575 $ 6 05,781 $ (1,679,233) $ 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, 2025 (with Summarized Totals for Year Ended June 30, 2024)
(CONTINUED)
Total
Other Community Returned 2024
Non-CPA Partnerships Reinvestment 2025 Summarized
State Grants Other Operating Funds Fund Total Total
REVENUES
CPA
Intergovernmental
GOC $ - $ - $ 4 14,051 $ - $ 4 14,051 $ 4 06,117
Subtotal CPA - - 4 14,051 - 4 14,051 4 06,117
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - - - - - -
GOC - non-CPA - - 8 8,957 - 8 8,957 -
State GOCCP - non-CPA - - - - - 2 5,000
Other State Grant Funding 2 18,762 - 2 18,762 - 2 18,762 2 96,372
Investment Income - - - 2 2 2 06
Donations - 1 ,000 1 ,000 - 1 ,000 -
Miscellaneous - 6 ,710 6 ,710 - 6 ,710 1 5,919
Subtotal Non-CPA 2 18,762 7 ,710 3 15,429 2 3 15,431 3 37,497
Total Revenues 2 18,762 7 ,710 7 29,480 2 7 29,482 7 43,614
EXPENDITURES
CPA
Program Contracted Services - - - - - -
Other Expenditures
Salaries - - 9 3,543 - 9 3,543 8 9,349
Fringe Benefit Costs - - 1 7,855 - 1 7,855 1 0,384
Auditing - - 3 ,817 - 3 ,817 3 ,817
Consultants - - 5 ,615 - 5 ,615 5 ,615
Equipment Rental - - 7 47 - 7 47 7 47
Other Contracted Services - - 5 2,222 - 5 2,222 4 7,774
Postage - - 2 02 - 2 02 1 05
Office Supplies - - 5 72 - 5 72 1 ,204
Program Supplies - - 3 7,892 - 3 7,892 3 6,854
Food - - 5 ,839 - 5 ,839 5 ,024
Printing and Publishing - - 2 48 - 2 48 1 83
Data Processing Supplies - - 9 ,679 - 9 ,679 1 0,791
Repairs and Equipment - - 1 ,056 - 1 ,056 1 ,894
Business Travel - - 5 ,108 - 5 ,108 5 ,567
Subscriptions and Dues - - 1 ,813 - 1 ,813 1 ,754
Meetings & Conferences - - 1 71 - 1 71 1 ,873
Training - - 2 84 - 2 84 1 ,534
Advertising - - 1 69 - 1 69 3 40
Communications - - 2 ,176 - 2 ,176 1 ,947
Rent - - - - - 2 ,000
Equipment under $1000/$500 - - - - - 2 ,114
Other Charges - - 1 75,043 - 1 75,043 1 75,246
Subtotal CPA Expenditures - - 4 14,051 - 4 14,051 4 06,116
Non-CPA
Program Contracted Services - - - - - 2 5,000
Other Expenditures
Salaries - 2 75,151 2 75,151 - 2 75,151 1 85,674
Fringe Benefit Costs - 1 20,896 1 20,896 - 1 20,896 8 1,594
Consultants - 6 ,000 1 4,500 - 1 4,500 1 2,735
Equipment Rental - 2 ,581 2 ,581 - 2 ,581 2 ,555
Other Contracted Services - 2 18,762 2 48,762 - 2 48,762 2 96,372
Postage - 1 21 1 21 - 1 21 1 72
Office Supplies - 2 ,220 2 ,220 - 2 ,220 2 ,798
Program Supplies - 1 0,784 1 0,784 - 1 0,784 1 6,457
Food - 2 ,047 2 ,047 - 2 ,047 3 ,119
Data Processing Supplies - - 1 5,000 - 1 5,000 -
Business Travel - - - - - 5 0
Subscriptions and Dues - 5 ,397 5 ,397 - 5 ,397 3 72
Meetings & Conferences - 1 1,217 2 6,674 - 2 6,674 1 0,232
Training - 7 05 7 05 - 7 05 1 ,171
Board's Expenditures - 4 ,494 4 ,494 - 4 ,494 6 ,784
Advertising - - - - - 2 45
Marketing/Promotions - 5 ,002 5 ,002 - 5 ,002 4 ,380
Communications - 1 ,278 1 ,278 - 1 ,278 2 ,098
Equipment under $1,000/$500 - - - - - 4 00
Other Charges - 2 61,138 2 81,138 - 2 81,138 1 76,395
Subtotal Non-CPA Expenditures - 9 27,793 1 ,016,750 - 1 ,016,750 8 28,603
Total Expenditures - 9 27,793 1 ,430,801 - 1 ,430,801 1 ,234,719
Excess of Revenues Over (Under) Expenditures 2 18,762 (920,083) (701,321) 2 (701,319) (491,105)
OTHER FINANCING SOURCES
Transfers In for:
Program Contracted Services - 6 95,960 6 95,960 - 6 95,960 4 91,311
Other Financing Sources - 6 95,960 6 95,960 - 6 95,960 4 91,311
Net Increase in Fund Balances 2 18,762 (224,123) (5,361) 2 (5,359) 2 06
Fund Balances, July 1 2 96,372 8 54,998 5 5,936 1 0,488 6 6,424 6 6,218
Fund Balances, June 30 $ 5 15,134 $ 6 30,875 $ 5 0,575 $ 1 0,490 $ 6 1,065 $ 6 6,424
172

173

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, 2025
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 $ 412,055 $ 504,555 $ 503,008 $ (1,547) $ - $ - $ - $ -
Other 296,372 296,372 218,762 (77,610) - - - -
Investment Income - - - - - - 2 2
Donations - - 1,000 1,000 - - - -
Miscellaneous 12,500 12,500 6,710 (5,790) - - - -
Total Revenues 720,927 813,427 729,480 (83,947) - - 2 2
EXPENDITURES
Program Contracted Services - - - - - - - -
Other Expenditures
Salaries 257,981 353,045 368,694 (15,649) - - - -
Fringe Benefit Costs 80,893 124,700 138,751 (14,051) - - - -
Auditing 3,817 3,817 3,817 - - - - -
Consultants 18,693 27,193 20,115 7,078 - - - -
Equipment Rental 3,252 3,252 3,328 ( 76) - - - -
Other Contracted Services 343,636 371,255 300,984 70,271 - - - -
Postage 610 610 323 287 - - - -
Office Supplies 5,895 5,695 2,792 2,903 - - - -
Program Supplies 51,978 51,978 48,676 3,302 - - - -
Food 8,700 8,700 7,886 814 - - - -
Printing and Publishing 250 250 248 2 - - - -
Data Processing Supplies 10,676 25,676 24,679 997 - - - -
Repairs and Equipment 2,380 2,380 1,056 1,324 - - - -
Business Travel 4,832 4,165 5,108 ( 943) - - - -
Subscriptions and Dues 5,385 5,385 7,210 (1,825) - - - -
Meetings & Conferences 3,200 30,431 26,845 3,586 - - - -
Training 6,234 5,334 989 4,345 - - - -
Board's Expenditures 7,038 7,038 4,494 2,544 - - - -
Advertising 760 760 169 591 - - - -
Marketing/Promotions 4,500 4,500 5,002 ( 502) - - - -
Communications 3,834 4,794 3,454 1,340 - - - -
Rent 2,000 - - - - - - -
Equipment 1,937 - - - - - - -
Other Charges 442,179 468,429 456,181 12,248 - - - -
Total Expenditures 1,270,660 1,509,387 1,430,801 78,586 - - - -
Excess of Revenues Over (Under)
Expenditures (549,733) (695,960) (701,321) (5,361) - - 2 2
OTHER FINANCING SOURCES
Transfers In for:
Program Contracted Services 549,733 695,960 695,960 - - - - -
Other Financing Sources 549,733 695,960 695,960 - - - - -
Net Increase in Fund Balances $ - $ - (5,361) $ (5,361) $ - $ - 2 $ 2
Fund Balances, July 1 55,936 10,488
Fund Balances, June 30 $ 50,575 $ 10,490
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, 2025
(CONTINUED)
TOTAL
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ 412,055 $ 504,555 $ 503,008 $ (1,547)
296,372 296,372 218,762 (77,610)
- - 2 2
- - 1,000 1,000
12,500 12,500 6,710 (5,790)
720,927 813,427 729,482 (83,945)
- - - -
257,981 353,045 368,694 (15,649)
80,893 124,700 138,751 (14,051)
3,817 3,817 3,817 -
18,693 27,193 20,115 7,078
3,252 3,252 3,328 ( 76)
343,636 371,255 300,984 70,271
610 610 323 287
5,895 5,695 2,792 2,903
51,978 51,978 48,676 3,302
8,700 8,700 7,886 814
250 250 248 2
10,676 25,676 24,679 997
2,380 2,380 1,056 1,324
4,832 4,165 5,108 ( 943)
5,385 5,385 7,210 (1,825)
3,200 30,431 26,845 3,586
6,234 5,334 989 4,345
7,038 7,038 4,494 2,544
760 760 169 591
4,500 4,500 5,002 ( 502)
3,834 4,794 3,454 1,340
2,000 - - -
1,937 - - -
442,179 468,429 456,181 12,248
1,270,660 1,509,387 1,430,801 78,586
(549,733) (695,960) (701,319) (5,359)
549,733 695,960 695,960 -
549,733 695,960 695,960 -
$ - $ - (5,359) $ (5,359)
66,424
$ 61,065
175

S S
TATISTICAL ECTION
176

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
2016 2017 2018 2019 2020
Governmental Activities:
Net Investment in Capital Assets $ 123,466,319 $ 120,249,244 $ 114,794,226 $ 115,143,089 $ 114,252,313
Restricted 2 1,063,295 1 3,094,534 1 3,275,244 1 8,962,289 1 9,844,181
Unrestricted (deficit) (1) (78,567,505) (67,189,342) (58,025,753) (61,637,321) (48,809,467)
Total Governmental Activities Net Position 6 5,962,109 (1) 6 6,154,436 (2) 7 0,043,717 7 2,468,057 8 5,287,027
Business-type Activities:
Net Investment in Capital Assets 8 0,909,015 8 6,163,078 8 4,386,291 8 5,916,730 8 6,939,502
Restricted 1 ,699,914 1 ,700,836 1 ,060,134 2 ,234,440 2 ,037,318
Unrestricted 1 0,240,161 4 ,116,300 7 ,458,996 1 0,087,649 1 6,587,060
Total Business-type Activities Net Position 9 2,849,090 (1) 9 1,980,214 (2) 9 2,905,421 9 8,238,819 1 05,563,880
Primary Government:
Net Investment in Capital Assets 2 04,375,334 2 06,412,322 1 99,180,517 2 01,059,819 2 01,191,815
Restricted 2 2,763,209 1 4,795,370 1 4,335,378 2 1,196,729 2 1,881,499
Unrestricted (deficit) (1) (68,327,344) (63,073,042) (50,566,757) (51,549,672) (32,222,407)
Total Primary Government Net Position $ 158,811,199 (1) $ 158,134,650 (2) $ 162,949,138 $ 170,706,876 $ 190,850,907
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 $ (68,327,344) $ (63,073,042) $ (50,566,757) $ (51,549,672) $ (32,222,407)
Debt issued for capital on behalf of others 6 3,271,304 5 9,207,136 5 8,625,356 5 8,007,072 5 5,846,036
County (deficit) net position absent the effect of this relationship $ (5,056,040) $ (3,865,906) $ 8 ,058,599 $ 6 ,457,400 $ 2 3,623,629
(1) FY2017 Net Position of Governmental and Business-Type Activities was restated in fiscal year 2018.
(2) FY2018 Net Position of Governmental and Business-Type Activities was restated in fiscal year 2019.
(3) FY2022 Net Position of Business-Type Activities was restated in fiscal year 2023.
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)
2021 2022 2023 2024 2025
$ 116,220,059 $ 118,666,142 $ 122,128,900 $ 126,092,854 $ 128,115,922
2 0,883,128 2 4,012,709 2 6,495,555 2 7,933,020 3 0,497,180
(20,071,163) 1 1,879,310 3 6,459,068 4 8,797,358 5 2,222,504
1 17,032,024 1 54,558,161 1 85,083,523 2 02,823,232 2 10,835,606
8 8,635,207 9 3,562,741 9 9,118,189 1 11,940,928 1 06,302,837
6 ,322,353 5 ,310,698 5 ,350,538 4 ,147,493 3 ,653,858
1 9,018,596 2 8,956,179 3 0,307,701 3 0,325,458 3 3,286,663
1 13,976,156 (3) 1 27,829,618 1 34,776,428 1 46,413,879 1 43,243,358
2 04,855,266 2 12,228,883 2 21,247,089 2 38,033,782 2 34,418,759
2 7,205,481 2 9,323,407 3 1,846,093 3 2,080,513 3 4,151,038
(1,052,567) 4 0,835,489 6 6,766,769 7 9,122,816 8 5,509,167
$ 231,008,180 (3) $ 282,387,779 $ 319,859,951 $ 349,237,111 $ 354,078,964
$ (1,052,567) $ 4 0,835,489 $ 6 6,766,769 $ 7 9,122,816 $ 8 5,509,167
5 6,855,185 5 3,155,458 4 8,229,215 4 3,910,684 3 9,390,472
$ 5 5,802,618 $ 9 3,990,947 $ 114,995,984 $ 123,033,500 $ 124,899,639
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
2016 2017 2018 2019 2020
Expenses
Governmental Activities:
General Government $ 13,936,312 $ 13,177,254 $ 17,511,975 $ 16,493,064 $ 17,299,695
Public Safety 27,525,712 27,997,262 28,373,219 35,668,385 31,445,313
Public Works 19,522,534 20,753,117 18,101,635 19,118,090 15,045,105
Parks & Recreation (3) - - - - 7,780,241
Health & Social Services 7,333,528 7,424,371 7,149,348 7,669,431 7,116,694
Education & Library 62,374,873 60,922,185 64,082,500 64,438,616 68,764,861
Conservation of Natural Resources 1,799,234 616,237 2,567,600 2,696,971 1,423,080
Economic/Community Development 3,391,547 1,860,222 2,477,129 1,808,000 2,281,480
Interest and Fiscal Charges 4,345,527 4,150,101 4,294,929 4,712,864 4,391,332
Total Governmental Activities Expenses 140,229,267 136,900,749 144,558,335 152,605,421 155,547,801
Business-type Activities:
Water and Sewer 10,615,466 11,818,087 12,880,483 11,232,955 11,602,537
Airport 9 66,896 1,053,899 1,100,136 1,434,031 968,205
Golf Course 505,085 540,504 509,150 584,718 541,335
Public Landings and Marinas 5 29,943 572,360 559,597 1,342,308 683,738
Total Business-type Activities Expenses 12,617,390 13,984,850 15,049,366 14,594,012 13,795,815
Total Primary Government Expenses 152,846,657 150,885,599 159,607,701 167,199,433 169,343,616
Program Revenues
Governmental Activities:
General Government
Charges for Services 1,565,170 1,552,164 1,669,311 1,769,520 1,509,985
Operating Grants and Contributions 5 82,571 563,016 660,790 716,683 428,812
Capital Grants and Contributions (30,000) - 1,080,084 480,500 520,277
Total Revenue 2,117,741 2,115,180 3,410,185 2,966,703 2,459,074
Public Safety
Charges for Services 1,354,350 1,350,626 1,505,267 1,415,187 1,379,621
Operating Grants and Contributions 1,088,597 1,037,879 1,294,733 1,161,505 1,697,018
Capital Grants and Contributions 1 75,653 5 ,406 166,001 176,970 112,845
Total Revenue 2,618,600 2,393,911 2,966,001 2,753,662 3,189,484
Public Works
Charges for Services 1,337,358 1,472,664 1,779,206 1,784,040 817,088
Operating Grants and Contributions 1,029,019 980,075 822,659 1,155,251 1,233,626
Capital Grants and Contributions 1 08,880 161,084 282,028 1,353,948 4 5,640
Total Revenue 2,475,257 2,613,823 2,883,893 4,293,239 2,096,354
Parks & Recreation (3)
Charges for Services - - - - 822,605
Operating Grants and Contributions - - - - 3 7,060
Capital Grants and Contributions - - - - 2,237,549
Total Revenue - - - - 3,097,214
Health & Social Services
Charges for Services 7 6,404 7 3,066 7 1,131 9 1,183 7 2,840
Operating Grants and Contributions 1,834,000 1,893,648 2,018,289 2,120,065 2,273,959
Capital Grants and Contributions 1 40,400 5 8,500 5 8,500 175,960 362,900
Total Revenue 2,050,804 2,025,214 2,147,920 2,387,208 2,709,699
Education & Library
Charges for Services 1,230,994 1,319,433 1,272,301 1,318,609 1,593,200
Operating Grants and Contributions - - - - -
Capital Grants and Contributions - - - 4 3,059 105,575
Total Revenue 1,230,994 1,319,433 1,272,301 1,361,668 1,698,775
Conservation of Natural Resources
Charges for Services 7 0,708 6 0,826 110,655 126,940 136,458
Operating Grants and Contributions 6 8,152 186,333 131,321 9 4,814 117,820
Capital Grants and Contributions 5 73,003 - 1,439,284 2,118,200 831,901
Total Revenue 7 11,863 247,159 1,681,260 2,339,954 1,086,179
Economic/Community Development
Charges for Services 311,000 620,000 316,500 - 205,000
Operating Grants and Contributions 1 56,804 231,360 810,319 205,300 757,258
Capital Grants and Contributions - - - - -
Total Revenue 4 67,804 851,360 1,126,819 205,300 962,258
Interest and Fiscal Charges
Charges for Services - - - - -
Operating Grants and Contributions - - - - -
Capital Grants and Contributions - - - - -
Total Revenue - - - - -
Total Governmental Activities Program Revenues 11,673,063 11,566,080 15,488,379 16,307,734 17,299,037
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)
2021 2022 2023 2024 2025
$ 21,447,303 $ 20,975,854 $ 21,070,854 $ 22,378,707 $ 26,179,090
33,376,832 32,937,936 42,482,230 49,458,541 54,655,168
13,898,271 15,486,633 19,422,823 20,222,362 17,436,351
6,051,585 6,445,776 6,338,014 7,458,494 7,032,764
6,969,134 6,631,472 7,219,183 7,944,933 8,458,369
68,632,733 68,957,650 69,770,287 83,355,583 101,119,281
3,621,749 2,402,429 3,386,538 3,702,670 3,463,854
5,262,207 3,012,720 2,798,777 2,826,682 4,107,120
4,330,706 4,415,584 4,525,460 4,254,673 2,695,256
163,590,520 161,266,054 177,014,166 201,602,645 225,147,253
12,157,175 12,384,820 13,822,527 14,932,981 19,846,575
940,188 1,017,606 1,058,318 966,183 1,459,540
523,435 609,737 697,824 730,908 744,055
1,104,170 548,928 684,685 666,295 858,122
14,724,968 14,561,091 16,263,354 17,296,367 22,908,292
178,315,488 175,827,145 193,277,520 218,899,012 248,055,545
2,027,823 2,400,962 2,037,088 1,717,926 1,949,432
2,686,609 2,920,183 249,863 1,742,174 1,586,121
1,056,963 1,219,155 1,549,325 2,529,869 1,941,368
5,771,395 6,540,300 3,836,276 5,989,969 5,476,921
1,772,824 2,782,299 1,908,036 2,617,398 3,040,986
3,603,339 2,300,947 3,601,321 2,628,668 2,340,500
1,379,718 908,036 164,422 179,350 213,051
6,755,881 5,991,282 5,673,779 5,425,416 5,594,537
1,083,030 1,134,409 961,563 883,739 1,112,618
1,494,842 8 ,500 9 ,070 6 ,270 8 ,826
- - 1,119,611 2,836,186 291,591
2,577,872 1,142,909 2,090,244 3,726,195 1,413,035
1,058,579 1,149,578 1,101,729 1,151,020 1,189,973
216,861 3 2,494 2 5,681 1 4,453 1 50
343,301 1,964,345 640,892 924,299 383,073
1,618,741 3,146,417 1,768,302 2,089,772 1,573,196
3 7,025 9 1,756 7 7,736 6 2,176 2 9,624
2,381,707 2,595,327 3,060,269 2,591,053 3,126,948
157,905 207,862 195,509 588,792 398,357
2,576,637 2,894,945 3,333,514 3,242,021 3,554,929
3,383,580 2,438,720 2,237,364 2,291,783 2,075,142
- - - - -
973,747 1,850,863 979,756 - -
4,357,327 4,289,583 3,217,120 2,291,783 2,075,142
163,971 4 6,491 7 6,138 1 9,262 1 3,955
111,443 - - - 1 9,273
1,612,662 1,095,760 2,007,786 2,474,706 1,462,918
1,888,076 1,142,251 2,083,924 2,493,968 1,496,146
864,667 397,823 620,000 - -
3,978,848 1,523,758 1,286,414 1,066,447 1,309,156
- - - - -
4,843,515 1,921,581 1,906,414 1,066,447 1,309,156
- 4 8,506 4 6,124 4 8,412 4 7,669
- - - - -
- - - - -
- 4 8,506 4 6,124 4 8,412 4 7,669
30,389,444 27,117,774 23,955,697 26,373,983 22,540,731
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)
2016 2017 2018 2019 2020
Business-type Activities:
Water and Sewer
Charges for Services $ 8,956,360 $ 8,222,317 $ 9,214,383 $ 10,524,474 $ 13,873,082
Operating Grants and Contributions 8 5,099 9 0,000 9 0,000 520,000 2,541,550
Capital Grants and Contributions 1,958,051 2,222,796 4,198,378 3,626,906 1,974,341
Total Revenue 10,999,510 10,535,113 13,502,761 14,671,380 18,388,973
Airport
Charges for Services 4 5,916 3 3,256 2 5,857 2 4,710 2 4,130
Operating Grants and Contributions 5 2,837 245,738 6 0,858 725,109 9 5,052
Capital Grants and Contributions - - - - -
Total Revenue 9 8,753 278,994 8 6,715 749,819 119,182
Golf Course
Charges for Services 305,528 318,599 340,123 373,014 399,603
Operating Grants and Contributions - - - - -
Capital Grants and Contributions - - - - -
Total Revenue 3 05,528 318,599 340,123 373,014 399,603
Public Landings and Marinas
Charges for Services 423,427 443,176 451,524 454,071 538,760
Operating Grants and Contributions 3 6,781 3 3,542 104,829 888,592 1 0,447
Capital Grants and Contributions - - - - -
Total Revenue 4 60,208 476,718 556,353 1,342,663 549,207
Total Business-type Activities Program Revenues 11,863,999 11,609,424 14,485,952 17,136,876 19,456,965
Total Primary Government Program Revenues 23,537,062 23,175,504 29,974,331 33,444,610 36,756,002
Net (Expense) Revenue (1)
Governmental activities (128,556,204) (125,334,669) (129,069,956) (136,297,687) (138,246,764)
Business-type activities ( 753,391) ( 2,375,426) ( 563,414) 2,542,864 5,661,150
Total Primary Government Net Expense $ (129,309,595) $ (127,710,095) $ (129,633,370) $ (133,754,823) $ (132,585,614)
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes (2) $ 121,011,135 $ 123,299,031 $ 131,444,679 $ 137,285,550 $ 148,876,477
Investment income 1 74,691 444,063 978,955 1,772,464 1,393,017
Gain/(Loss) on Sale of Capital Assets 1 61,106 5 3,936 8 7,734 2 5,823 4 4,343
Miscellaneous 949,046 2,065,465 630,895 979,201 900,976
Transfers In (Out) ( 201,122) ( 335,499) ( 183,026) ( 1,341,011) ( 149,079)
Total Governmental Activities 122,094,856 125,526,996 132,959,237 138,722,027 151,065,734
Business-type Activities:
Investment income 3 20,443 361,840 439,716 550,691 589,126
Gain (Loss) on Sale of Capital Assets - - - 3 3,100 1 7,876
Miscellaneous 746,167 809,211 865,879 865,732 907,830
Transfers In (Out) 201,122 335,499 183,026 1,341,011 149,079
Total Business-type Activities 1,267,732 1,506,550 1,488,621 2,790,534 1,663,911
Total Primary Government 123,362,588 127,033,546 134,447,858 141,512,561 152,729,645
Change in Net Position
Governmental activities ( 6,461,348) 192,327 3,889,281 2,424,340 12,818,970
Business-type activities 5 14,341 ( 868,876) 925,207 5,333,398 7,325,061
Total Primary Government $ ( 5,947,007) $ ( 676,549) $ 4,814,488 $ 7,757,738 $ 20,144,031
`
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 FY16 through FY19, Parks & Recreation governmental activities are included in public works (parks) and social services (recreation).
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)
2021 2022 2023 2024 2025
$ 12,174,150 $ 18,143,049 $ 12,330,275 $ 14,162,090 $ 12,735,451
4,600,000 865,761 1,467,662 2,565,847 1,811,221
2,668,488 3,034,541 4,027,234 2,607,219 477,452
19,442,638 22,043,351 17,825,171 19,335,156 15,024,124
2 4,920 2 3,774 2 2,655 6 ,049 1 2,086
2 0,180 516,774 741,939 - 8 8,163
- - - 5,028,713 -
4 5,100 540,548 764,594 5,034,762 100,249
593,022 594,180 617,340 720,153 655,355
- - - - -
- - - - -
593,022 594,180 617,340 720,153 655,355
540,240 475,309 465,730 465,457 451,542
178,208 640,752 745,966 1 4,999 246,225
- - - - -
718,448 1,116,061 1,211,696 480,456 697,767
20,799,208 24,294,140 20,418,801 25,570,527 16,477,495
51,188,652 51,411,914 44,374,498 51,944,510 39,018,226
(133,201,076) (134,148,280) (153,058,469) ( 175,228,662) (202,606,522)
6,074,240 9,733,049 4,155,447 8,274,160 ( 6,430,797)
$ (127,126,836) $ (124,415,231) $ (148,903,022) $ (166,954,502) $ (209,037,319)
$ 163,687,534 $ 171,755,675 $ 176,022,971 $ 182,200,656 $ 201,209,510
239,908 462,588 6,448,944 9,192,673 7,932,266
9 5,687 ( 1,157,005) - - -
1,073,180 1,801,868 1,628,246 2,059,293 1,596,056
( 150,236) ( 1,188,709) ( 516,330) ( 484,251) ( 118,936)
164,946,073 171,674,417 183,583,831 192,968,371 210,618,896
424,983 414,822 1,047,564 1,732,675 1,817,477
573,500 5 ,265 2 ,561 (21,552) -
1,189,317 2,511,617 1,224,908 1,167,917 1,323,863
150,236 1,188,709 516,330 484,251 118,936
2,338,036 4,120,413 2,791,363 3,363,291 3,260,276
167,284,109 175,794,830 186,375,194 196,331,662 213,879,172
31,744,997 37,526,137 30,525,362 17,739,709 8,012,374
8,412,276 13,853,462 6,946,810 11,637,451 ( 3,170,521)
$ 40,157,273 $ 51,379,599 $ 37,472,172 $ 29,377,160 $ 4,841,853
183

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
GENERAL TAX REVENUES - GOVERNMENTAL ACTIVITIES
LAST TEN FISCAL YEARS
Table 2-b
2016 2017 2018 2019 2020
Local Property Taxes $ 65,185,546 $ 66,487,004 $ 6 7,736,404 $ 7 0,670,569 $ 7 1,874,566
Local Income Tax 47,928,725 48,624,679 5 5,211,695 5 7,728,293 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 $ 1 31,444,679 $ 1 37,285,550 $ 1 48,876,477
2021 2022 2023 2024 2025
Local Property Taxes $ 74,474,109 $ 76,017,204 $ 7 8,022,772 $ 8 2,047,674 $ 8 7,632,233
Local Income Tax 73,458,519 78,881,170 8 3,439,604 8 6,567,013 9 7,132,220
Other Local Taxes 15,754,906 15,164,554 1 3,208,003 1 2,025,782 1 4,579,100
Total Taxes - Governmental Activities $ 163,687,534 $ 170,062,928 $ 1 74,670,379 $ 1 80,640,469 $ 1 99,343,553
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
2016 2017 2018 2019 2020
General Fund:
Nonspendable $ 5 86,481 $ 754,921 $ 1 ,001,610 $ 1,616,447 $ 2 ,400,664
Restricted 9 ,002,389 10,626,394 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 2 2,984,243 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 2 1,316,088 8,900,465 6 ,815,341 12,598,139 1 5,121,784
Committed 3 ,425,701 13,447,283 1 5,202,215 18,514,079 2 1,296,829
Assigned 1 8,029,073 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 4 8,801,805 45,891,712 4 9,170,994 54,657,635 6 0,116,415
Total All Governmental Funds $ 7 1,786,048 $ 72,101,972 $ 7 8,826,459 $ 89,716,958 $ 1 01,201,044
2021 2022 2023 2024 2025
General Fund:
Nonspendable $ 5 ,751,694 $ 92,744 $ 2 42,876 $ 148,234 $ 1 ,036,210
Restricted 1 6,182,014 17,838,136 1 9,996,347 21,377,816 2 3,638,847
Committed 7 ,621,618 8,399,587 9 ,069,982 9,450,311 1 0,344,918
Assigned 1 ,525,829 1,500,000 - - -
Unassigned 1 9,340,107 32,142,920 3 9,494,554 46,537,817 5 3,768,694
Total General Fund 5 0,421,262 59,973,387 6 8,803,759 77,514,178 8 8,788,669
All Other Governmental Funds:
Nonspendable - 1,327,375 1 ,274,659 1,218,486 1 ,223,652
Restricted 1 7,919,423 22,270,920 1 7,607,427 12,551,494 9 ,724,855
Committed 2 5,457,920 27,010,544 2 8,987,607 31,668,367 3 1,912,217
Assigned 3 6,026,980 44,073,399 4 9,351,449 49,153,762 3 5,056,277
Unassigned (19,649) - - - (1,006,624)
Total All Other Governmental Funds 7 9,384,674 94,682,238 9 7,221,142 94,592,109 7 6,910,377
Total All Governmental Funds $ 1 29,805,936 $ 154,655,625 $ 1 66,024,901 $ 172,106,287 $ 1 65,699,046
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
2016 2017 2018 2019 2020
Revenues
Taxes
Local Property Taxes $ 64,946,443 $ 66,501,901 $ 67,944,730 $ 70,615,293 $ 71,682,389
Local Income Taxes 46,424,552 48,578,044 51,834,189 55,282,162 61,547,651
Other Local Taxes 7,896,865 8,187,348 8,496,580 8,886,688 9,303,464
State Shared Taxes 623,256 708,566 836,677 1,171,668 1,192,293
Licenses and Permits 1,078,144 1,123,072 1,167,444 1,224,381 1,083,317
Intergovernmental 4,696,561 3,987,308 7,539,052 8,284,699 9,506,419
Bond Interest Reimbursement - Build America Bond 364,799 350,254 334,858 319,362 -
Charges for Current Services 4,617,730 5,114,605 5,298,701 5,088,123 5,320,465
Fines and Forfeitures 250,110 211,102 258,226 192,975 133,015
Investment Income 174,691 444,063 978,955 1,772,464 1,393,017
Donations 45,773 60,217 57,635 31,084 143,375
Miscellaneous 949,045 2,065,465 630,895 979,201 900,976
Total Revenues 132,067,969 137,331,945 145,377,942 153,848,100 162,206,381
Expenditures
Current
General Government (1) 9,817,062 10,382,078 10,640,065 10,542,151 10,610,554
Public Safety 23,523,103 23,866,030 25,049,431 24,411,320 27,648,023
Public Works 15,080,454 15,506,684 15,235,104 16,163,026 12,749,864
Parks and Recreation - - - - 6,995,840
Health & Social Services 5,827,938 5,981,620 6,100,594 6,209,377 6,660,677
Education & Library 62,405,143 60,950,845 64,117,236 64,473,922 68,796,024
Conservation of Natural Resources 1,744,260 565,938 2,577,735 2,717,738 1,475,572
Economic/Community Development 3,188,928 1,710,899 2,433,171 1,638,265 2,107,676
Miscellaneous 4,766,722 4,185,652 5,348,568 5,729,955 5,308,680
Capital Outlay 11,050,384 14,591,632 12,311,551 9,323,882 4,963,004
Debt Service
Principal 7,667,316 8,074,013 7,149,537 7,855,820 8,624,604
Debt Issuance Costs 218,799 196,150 229,894 211,447 316,027
Interest and Fiscal Charges 3,696,719 4,104,254 4,280,553 4,586,387 4,676,955
Total Expenditures 148,986,828 150,115,795 155,473,439 153,863,290 160,933,500
Excess (Deficiency) of Revenues over (under) Expenditures (16,918,859) (12,783,850) (10,095,497) (15,190) 1,272,881
Other Financing Sources (Uses)
Issuance of Debt 15,484,639 12,775,926 16,000,000 11,000,000 9,000,000
Other Financing Use - Proceeds of Refunding Bonds 8,042,773 - - - 14,682,184
Bond Premiums 1,650,448 618,681 908,973 1,011,998 3,654,843
Payments to Bond Refunding Agent - - - - -
Other Financing Use - Debt Service - Principal (8,446,336) - - - (17,043,453)
Proceeds of Capital Asset Disposals 18,100 55,189 54,097 231,588 30,949
Insurance Proceeds 153,534 12,241 39,940 3,114 35,761
Leases - - - - -
Subscription-Based IT Arrangements - - - - -
Transfers In 9,941,051 6,331,482 8,220,201 12,588,897 9,690,474
Transfers Out (10,243,787) (6,693,745) (8,403,227) (13,929,908) (9,839,553)
Total Other Financing Sources (Uses) 16,600,422 13,099,774 16,819,984 10,905,689 10,211,205
Net Increase (Decrease) in Fund Balances $ (318,437) $ 315,924 $ 6,724,487 $ 10,890,499 $ 11,484,086
Debt service as a percentage of non-capital expenditures (2, 3) 8.16% 8.99% 8.00% 8.61% 8.53%
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 "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)
2021 2022 2023 2024 2025
$ 74,769,217 $ 75,943,263 $ 78,062,336 $ 82,109,458 $ 87,556,687
67,985,531 71,002,615 79,467,361 86,007,950 92,720,625
15,754,906 15,164,554 13,208,003 12,025,782 14,579,100
1,286,374 1,692,747 1,352,592 1,560,187 1,865,957
1,461,286 1,656,112 1,417,096 1,207,809 1,373,455
18,705,791 16,927,224 14,889,923 17,381,754 13,025,677
- - - - -
8,789,033 8,258,386 7,454,195 7,451,475 8,018,027
141,180 255,955 174,002 132,427 87,912
239,908 462,588 6,448,944 9,192,673 7,932,266
5,780 65,052 20,481 200,518 35,660
1,073,180 1,801,868 1,628,246 2,059,293 1,596,056
190,212,186 193,230,364 204,123,179 219,329,326 228,791,422
13,487,519 13,368,832 15,890,722 16,878,490 21,211,090
29,314,405 32,933,956 38,135,440 42,825,592 45,033,326
12,223,767 14,291,677 19,545,607 19,794,447 17,878,750
5,257,527 5,578,791 6,049,686 6,731,220 6,914,365
6,731,938 6,389,428 7,909,483 8,266,984 9,108,852
68,621,741 68,947,327 69,757,478 82,716,306 100,869,711
3,672,847 2,411,769 3,457,656 3,730,444 3,503,173
5,233,618 2,997,250 3,017,040 3,054,946 4,381,826
6,834,217 6,981,356 8,921,419 7,232,373 7,859,623
12,790,600 9,877,764 8,603,952 9,019,268 6,098,966
7,343,425 7,775,190 8,696,773 8,536,204 8,689,647
249,479 439,157 29,851 - 217,705
4,492,461 4,415,584 4,525,460 4,254,673 3,838,431
176,253,544 176,408,081 194,540,567 213,040,947 235,605,465
13,958,642 16,822,283 9,582,612 6,288,379 (6,814,043)
13,000,000 7,800,000 - - -
10,835,995 - - - -
3,814,696 492,106 - - -
- - - - -
(12,970,537) - - - -
41,099 63,850 61,520 89,074 79,675
102,429 35,208 103,030 150,184 237,105
- - 638,500 - -
- - 1,503,069 38,000 208,958
20,469,607 23,952,703 27,982,455 26,534,774 23,543,565
(20,647,039) (24,316,461) (28,501,910) (27,019,025) (23,662,501)
14,646,250 8,027,406 1,786,664 (206,993) 406,802
$ 28,604,892 $ 24,849,689 $ 11,369,276 $ 6,081,386 $ (6,407,241)
7.26% 7.38% 7.26% 6.33% 5.50%
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
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
2021 1,810,616,428 6,789,270,644 8 ,599,887,072 0 .8471 115,005,450 8,714,892,522 8 60,398,332 9 ,575,290,854
2022 1,814,529,551 6,984,923,499 8 ,799,453,050 0 .8471 122,167,420 8,921,620,470 8 79,391,068 9 ,801,011,538
2023 1,869,310,608 7,334,750,709 9 ,204,061,317 0 .8300 131,489,970 9,335,551,287 8 87,420,959 1 0,222,972,246
2024 1,946,403,718 7,735,421,703 9 ,681,825,421 0 .8300 159,917,460 9,841,742,881 9 20,628,412 1 0,762,371,293
2025 2,176,834,868 8,171,017,619 1 0,347,852,487 0 .8300 145,288,650 10,493,141,137 1 ,076,439,805 1 1,569,580,942
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.
188

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)
2016 $ 0 .8471
2017 0 .8471
2018 0 .8471
2019 0 .8471
2020 0 .8471
2021 0 .8471
2022 0 .8471
2023 0 .8300
2024 0 .8300
2025 0 .8300
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
2016 $ 0 .0600
2017 0 .0600
2018 0 .0600
2019 0 .0600
2020 0 .0600
2021 0 .0600
2022 0 .0600
2023 0 .0600
2024 0 .0600
2025 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
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
2021 0.4050 0.2000 0 .3400 0.2774 0.1800
2022 0.5350 0.2000 0 .3400 0.2909 0.1800
2023 0.5350 0.2000 0 .3400 0.2920 0.1800
2024 0.5350 0.2000 0 .3400 0.3000 0.1800
2025 0.5350 0.2000 0 .3400 0.3300 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
$ 0.1850 $ 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
0.1867 0.1670 0 .3600
0.2026 0.1670 0 .3600
0.2217 0.1670 0 .3600
0.2312 0.1670 0 .3600
0.2312 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, 2025
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
KRM Development Corporation $ 61,933,400 0.59 %
Second Horizon Group Limited Ptnsp 34,002,233 0.32
Chesapeake Bay Beach Club LLC 24,141,966 0.23
KRM-Chesapeake LLC 24,060,100 0.23
Maryland General Land Co LLC 20,194,066 0.19
Schulz Development LLC 18,860,667 0.18
Beach Harbor Campers Co-Operative 16,574,167 0.16
Kent Towne Market LLC 15,332,667 0.15
Anne Arundel Real Estate Holding Co 13,865,900 0.13
KRM-Deerfield LLC 12,692,933 0.12
Total $ 241,658,099 2.31 %
Total Assessable Base $ 10,493,141,137 100.00 %
For the Fiscal Year Ended June 30, 2016
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 64,726,400 0.85 %
KRM Development Corporation 20,343,367 0.27
Great American Life Insurance Company 14,251,500 0.19
Maryland General Land Co LLC 13,016,200 0.17
Beach Harbor Campers Cooperative Inc 12,582,700 0.16
Aspen Institute for Humanistic Studies 10,691,700 0.14
Anne Arundel Real Estate Holding Co 10,392,267 0.14
Shore Health System Inc 9,975,900 0.13
Mears Point Association 9,967,200 0.13
Kent Narrows Properties LLC 9,576,800 0.13
Total $ 175,524,034 2.29 %
Total Assessable Base $ 7,626,510,532 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
2016 $ 63,799,184 $ 6 3,647,404 99.76% $ 151,780 $ 63,799,184 100.00%
2017 65,217,648 6 5,107,115 99.83% 110,533 6 5,217,648 100.00%
2018 66,768,776 6 6,721,619 99.93% 47,157 6 6,768,776 100.00%
2019 68,887,556 6 8,778,389 99.84% 109,107 6 8,887,496 100.00%
2020 70,825,936 7 0,375,695 99.36% 446,527 7 0,822,222 99.99%
2021 72,635,124 7 2,627,467 99.99% 3,793 7 2,631,260 99.99%
2022 74,882,965 7 4,789,167 99.87% 89,788 7 4,878,955 99.99%
2023 77,663,358 7 7,608,873 99.93% 46,158 7 7,655,031 99.99%
2024 80,137,298 8 0,060,018 99.90% 65,256 8 0,125,274 99.98%
2025 85,431,029 8 5,348,655 99.90% - 8 5,348,655 99.90%
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 Subscription-Based Total
Fiscal Obligation Notes Information Technology Governmental
Year Bonds Payable Leases Arrangements Activities
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 7 75,589 - - 137,289,000
2021 142,970,963 7 03,773 - - 143,674,736
2022 142,140,969 6 55,957 - - 142,796,926
2023 132,251,652 6 08,141 614,668 1,178,880 134,653,341
2024 122,661,132 5 60,325 552,354 905,835 124,679,646
2025 112,706,737 5 12,509 496,953 725,317 114,441,516
Business-type Activities
General Subscription-Based Total Total
Fiscal Obligation Notes Information Technology Business-type Primary
Year Bonds Payable Leases Arrangements Activities Government
2016 $ 3,520,859 $ 1 0,471,639 $ - $ - $ 13,992,498 $ 134,883,606
2017 3,217,479 1 6,296,744 - - 19,514,223 144,731,805
2018 2,976,195 2 5,484,821 - - 28,461,016 162,445,781
2019 2,725,011 2 9,419,756 - - 32,144,767 169,228,169
2020 2,475,881 3 1,932,369 - - 34,408,250 171,697,250
2021 2,337,041 3 4,432,935 - - 36,769,976 180,444,712
2022 2,362,308 3 3,291,256 39,225 - 35,692,789 178,489,715
2023 2,206,362 3 5,322,576 144,381 - 37,673,319 172,326,660
2024 2,011,526 3 4,997,932 110,714 - 37,120,172 161,799,818
2025 1,810,571 4 0,287,367 82,792 - 42,180,730 156,622,246
Ratios
Debt to
Total Outstanding
Fiscal Personal Debt per
Year Income (1) Capita (1)
2016 7.24% 2 ,780
2017 7.64% 2 ,960
2018 8.39% 3 ,322
2019 8.22% 3 ,335
2020 7.29% 3 ,264
2021 7.73% 3 ,458
2022 6.96% 3 ,421
2023 6.33% 3 ,332
2024 5.85% 3 ,081
2025 5.42% 2 ,973
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)
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
2021 1 45,308,004 1.67% 2,785
2022 1 44,503,277 1.62% 2,769
2023 1 34,458,014 1.44% 2,600
2024 1 24,672,658 1.27% 2,374
2025 1 14,517,308 1.09% 2,173
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, 2025
Table 11
Name of Jurisdiction Gross Debt
Queen Anne's County:
County Government
Total Net Direct Debt (1) $ 1 14,441,516
Towns: (2)
Centreville (100%) 9,616,500
Queenstown (100%) 4 ,654,834
Sudlersville (100%) 4 ,491,262
Millington (100%) 9 97,300
Total Net Overlapping Debt 1 9,759,896
Total Net Direct and Overlapping Debt $ 1 34,201,412
NOTES:
(1) Net direct debt of the County includes Governmental Activities general obligation bonds, notes payable, leases, and
subscription-based information technology arrangements. 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.
198

199

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
2016 2017 2018 2019 2020
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) 3 ,520,859 3 ,217,479 2 ,976,195 2 ,725,011 2 ,475,881
General Obligation Debt (4) 118,977,909 123,519,157 132,567,304 135,985,079 136,513,411
Subtotal 122,498,768 126,736,636 135,543,499 138,710,090 138,989,292
Total authorized debt under Title 5 and specific public laws 130,498,768 134,736,636 143,543,499 146,710,090 146,989,292
LESS Outstanding bonds, notes payable, and capital leases (5) 134,883,606 144,731,805 162,445,781 169,228,169 171,697,250
Less: Sanitary District debt (4) 10,471,639 16,296,744 25,484,821 29,419,756 31,932,369
Subtotal 124,411,967 128,435,061 136,960,960 139,808,413 139,764,881
Legal Debt Margin - Other than the Sanitary District $ 6,086,801 $ 6,301,575 $ 6,582,539 $ 6,901,677 $ 7,224,411
Debt related to the Sanitary District Proprietary Fund:
Total taxable assessed value (3) $ 7,626,510,532 $ 7,792,264,218 $ 7,974,395,138 $ 8,264,514,461 $ 8,486,858,638
Plus exempt property (3) 713,843,531 771,576,578 784,345,727 810,049,666 839,013,301
Total assessed value $ 8,340,354,063 $ 8,563,840,796 $ 8,758,740,865 $ 9,074,564,127 $ 9,325,871,939
Debt Limit - 6% of total assessed value (2) $ 500,421,244 $ 513,830,448 $ 525,524,452 $ 544,473,848 $ 559,552,316
LESS Sanitary District 10,471,639 16,296,744 25,484,821 29,419,756 31,932,369
Less: Restricted Cash and Investments in the
Debt Service Fund available for payment of principal 1 ,120,775 9 47,445 1 ,060,045 1 ,259,440 2 ,031,867
9 ,350,864 15,349,299 24,424,776 28,160,316 29,900,502
Legal Debt Margin - Sanitary District $ 491,070,380 $ 498,481,149 $ 501,099,676 $ 516,313,532 $ 529,651,814
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)
2021 2022 2023 2024 2025
$ 8,000,000 $ 8,000,000 $ 8,000,000 $ 8,000,000 $ 8,000,000
2,337,041 2,362,308 2,206,362 2,011,526 1,810,571
142,970,963 142,140,969 132,251,652 122,661,132 112,706,737
145,308,004 144,503,277 134,458,014 124,672,658 114,517,308
153,308,004 152,503,277 142,458,014 132,672,658 122,517,308
180,444,712 178,489,715 172,326,660 161,799,818 156,622,246
34,432,935 33,291,256 35,322,576 34,997,932 40,287,367
146,011,777 145,198,459 137,004,084 126,801,886 116,334,879
$ 7,296,227 $ 7,304,818 $ 5,453,930 $ 5,870,772 $ 6,182,429
$ 8,714,892,522 $ 8,921,620,470 $ 9,335,551,287 $ 9,841,742,881 $ 1 0,493,141,137
860,398,332 879,391,068 887,420,959 920,628,412 1,076,439,805
$ 9,575,290,854 $ 9,801,011,538 $ 1 0,222,972,246 $ 1 0,762,371,293 $ 1 1,569,580,942
$ 574,517,451 $ 588,060,692 $ 613,378,335 $ 645,742,278 $ 694,174,857
34,432,935 33,291,256 35,322,576 34,997,932 40,287,367
2,684,988 1,913,102 1,703,815 2,170,557 2,160,833
31,747,947 31,378,154 33,618,761 32,827,375 38,126,534
$ 542,769,504 $ 556,682,538 $ 579,759,574 $ 612,914,903 $ 656,048,323
201

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LOCAL DEBT LIMIT
LAST TEN FISCAL YEARS
Table 12-b
2016 2017 2018 2019 2020
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) $ 7,626,510,532 $ 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%
2.5% of Total Taxable Assessed Base $ 190,662,763 $ 194,806,605 $ 1 99,359,878 $ 206,612,862 $ 212,171,466
LESS Outstanding and New General Obligation Debt applicable to limit (2) (3)
Enterprise Funds' Debt - Bonds $ 3,520,859 $ 3,217,479 $ 2 ,976,195 $ 2,725,011 $ 2,475,881
General Obligation Debt - Bonds and Notes 120,891,108 125,217,582 1 33,984,765 137,083,402 137,289,000
Total Outstanding and New General Obligation Debt $ 124,411,967 $ 128,435,061 $ 1 36,960,960 $ 139,808,413 $ 139,764,881
2.5% of Total Taxable Assessed Base in Excess of
Total Outstanding and New General Obligation Debt $ 66,250,796 $ 66,371,544 $ 6 2,398,918 $ 66,804,449 $ 72,406,585
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) 48,517 48,904 4 8,904 50,750 52,597
$3,000 Per Capita $ 3,000 $ 3,000 $ 3 ,000 $ 3,000 $ 3,000
$ 145,551,000 $ 146,712,000 $ 1 46,712,000 $ 152,250,000 $ 157,791,000
LESS Outstanding and New General Obligation Debt (1) $ 124,411,967 $ 128,435,061 $ 1 36,960,960 $ 139,808,413 $ 139,764,881
$3,000 Per Capita in Excess of
Total Outstanding and New General Obligation Debt $ 21,139,033 $ 18,276,939 $ 9 ,751,040 $ 12,441,587 $ 18,026,119
NOTES:
(1) See Table 5 - Total Taxable Assessed Value.
(2) See Note 9 A - Changes in Noncurrent Liabilities.
(3) General Obligation Debt includes debt relating to the Sanitary District, because such debt is backed by the full faith
and credit of the County, but excludes all capital leases, which are collateralized by the equipment purchased with
such leases.
(4) See Table 14 - Population.
In May, 2013, as described in Note 9 E, Queen Anne’s County adopted Resolution No. 13-04, thereby continuing
a local debt policy in compliance with Article 95, Section 22F of the Annotated Code of Maryland.
This policy requires that the County’s Director of Budget and Finance to 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)
2021 2022 2023 2024 2025
$ 8,714,892,522 $ 8,921,620,470 $ 9,335,551,287 $ 9,841,742,881 $ 10,493,141,137
2.5% 2.5% 2.5% 2.5% 2.5%
$ 217,872,313 $ 223,040,512 $ 233,388,782 $ 246,043,572 $ 262,328,528
$ 2,337,041 $ 2,362,308 $ 2,206,362 $ 2,011,526 $ 1,810,571
143,674,736 142,796,926 132,859,793 123,221,457 113,219,246
$ 146,011,777 $ 145,159,234 $ 135,066,155 $ 125,232,983 $ 115,029,817
$ 71,860,536 $ 77,881,278 $ 98,322,627 $ 120,810,589 $ 147,298,711
52,177 52,177 51,711 52,508 52,688
$ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000
$ 156,531,000 $ 156,531,000 $ 155,133,000 $ 157,524,000 $ 158,064,000
$ 146,011,777 $ 145,159,234 $ 135,066,155 $ 125,232,983 $ 115,029,817
$ 10,519,223 $ 11,371,766 $ 20,066,845 $ 32,291,017 $ 43,034,183
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, 2025
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 997 1 6.02%
Queen Anne's County Government 695 2 4.19%
Paul Reed Smith Guitars 468 3 2.82%
Chesapeake College 385 4 2.32%
REEB Millwork 303 5 1.83%
S.E.W. Friel 260 6 1.57%
Food Lion 203 7 1.22%
The Chesapeake Bay Beach Club 150 8 0.91%
Avail 145 9 0.87%
Harris Seafood Company 125 10 0.75%
Total 3,731 22.50%
For the Fiscal Year Ended June 30, 2016
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 945 1 8.04%
Chesapeake College 756 2 6.43%
Queen Anne's County Government 466 3 3.97%
S.E.W. Friel 275 4 2.34%
Paul Reed Smith Guitars 236 5 2.01%
Reeb Millwork 180 6 1.53%
Cracker Barrel Old Country Store 170 7 1.45%
Power Electronics 162 8 1.38%
Federal Resources Supply 146 9 1.24%
Tidewater Direct 144 10 1.23%
Total 3,480 29.63%
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)
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
2021 52,177 2,335,129,458 4 4,754 5.20% 7 ,351
2022 52,177 2,565,960,506 4 9,178 4.00% 7 ,418
2023 51,711 2,722,687,572 5 2,652 1.50% 7 ,539
2024 52,508 2,764,651,216 5 2,652 2.80% 7 ,492
2025 53,688 2,943,390,912 5 4,824 2.90% 7 ,492
NOTES:
(1) Source: US Census Bureau
(2) Personal income derived by multiplying population by per capita income.
(3) Source: US Census Bureau
(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
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Number of Exempt Employees 32 35 34 32 33 37 40 40 46 49
Number of Full Time Employees 431 439 450 479 484 496 462 533 627 644
Number of Part Time Employees (FTE) 3 4 3 3 2 2 2 2 2 2
Total County Government Employees 466 478 487 514 519 535 504 575 675 695
NOTES:
Source: Queen Anne's County Office of Budget and Finance
206

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME ONLY BY FUNCTION
LAST TEN FISCAL YEARS
Table 16
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental Activities:
General Government 83 87 76 75 78 79 83 92 97 103
Public Safety:
Police 59 61 62 69 71 70 65 72 93 95
Fire - Emergency Management Services 72 73 75 82 83 83 84 101 118 113
Detention Center 41 45 41 42 43 45 42 46 54 53
Animal Services 2 2 2 2 2 13 7 13 16 19
Public Works 61 59 75 80 77 75 68 77 93 103
Health 1 1 1 1 1 1 1 1 1 1
Social Services 42 41 39 39 39 41 41 40 45 44
Parks 42 44 43 46 52 51 43 53 60 66
Conservation of Natural Resources 4 4 4 4 4 4 3 3 4 4
Economic/Community Development 6 5 10 11 9 10 10 12 17 18
Total Governmental Activities 413 422 428 451 459 472 447 510 598 619
Business-Type Activities:
Sanitary District 46 48 51 55 53 56 50 60 72 71
Bay Bridge Airport 1 1 2 2 2 2 2 2 2 2
Golf 1 1 1 1 1 1 1 1 1 1
Public Landings 2 2 2 2 2 2 2 2 2 2
Total Business-Type Activities 50 52 56 60 58 61 55 65 77 76
Total Full-Time County Employees 463 474 484 511 517 533 502 575 675 695
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 and Finance
207

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Table 17
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental Activities:
General Government:
Planning & Zoning:
Number of commercial permits issued 50 47 55 30 49 91 63 83 48 54
Number of residential permits issued:
Single Family Permits 84 124 145 155 173 275 136 271 284 259
Multi Family Permits 1 29 - 37 41 62 32 2 56 9
Renovations and Additions Permits 303 323 339 359 317 343 203 357 303 271
Total residential permits issued 388 476 484 551 531 680 371 630 643 539
Public Safety:
Fire and Rescue:
Number of volunteer members 500 400 500 450 542 558 550 703 757 626
Police:
Uniformed Police Officers 64 64 68 69 71 71 73 77 84 84
Number of law violations:
Physical arrests 903 914 1,097 930 854 1,080 812 859 1,240 1,178
Traffic violations 8,002 7,183 12,384 10,474 9,705 11,142 7,447 9,859 13,111 19,219
Detention Center:
Detention Center Officers 39 38 42 41 41 42 41 43 43 46
Average yearly prison population 115 133 115 105 106 158 154 108 99 93
Public Works:
Wastewater Treated - Daily (mgd) 2.0 2.0 2.2 2.2 2.1 2.3 2.7 2.6 2.6 2.6
Education:
Number of Personnel
Teachers 575 572 569 572 584 603 609 615 615 571
Administrators 40 38 37 37 37 36 38 43 49 53
Support 296 304 300 301 281 336 364 348 349 323
Other 34 34 34 32 7 7 7 5 83 50
Number of Students 7,738 7,799 7,768 7,767 7,705 7,351 7,418 7,539 7,492 7,492
Number of High School Graduates 532 550 552 521 590 561 535 534 568 571
NOTES:
Source: Various County departments.
208

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Table 18
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental Activities:
Public Safety:
Fire and Rescue:
Number of volunteer stations 9 9 9 9 9 9 9 9 9 9
Equipment:
Engines 16 16 16 15 15 15 15 14 15 15
Tankers 8 8 8 7 9 9 9 9 9 9
Aerial Units 5 5 4 5 5 5 5 5 5 5
Rescue Units 6 6 5 5 7 7 7 7 7 8
Brush Units 7 7 7 7 8 8 8 8 8 8
Boats 6 6 3 4 4 4 4 4 4 3
Ambulance/Medic Units 12 13 13 11 13 12 13 11 11 11
Cars/Other 25 16 14 28 33 33 33 30 34 30
Police:
Number of Stations 1 1 1 1 1 1 1 1 1 1
Number of Vehicles
Patrol 71 70 70 71 81 66 43 60 74 82
Other 10 9 14 14 12 29 67 30 33 24
Detention Center
Capacity 148 148 148 148 148 148 148 148 148 148
Public Works:
County Maintained Roads and Streets
Paved (miles) 540 549 549 549 550 550 549 549 549 549
Unpaved (miles) 12 12 12 12 12 12 12 12 12 12
County Owned Water and
Wastewater Facilities
Water
Miles of Mains 64 65 67 68 69 70 71 71 72 77
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 128 136 151 153 154 160 162 162 162 175
Wastewater Treatment Plants 1 1 1 1 1 1 1 1 1 1
Wastewater Collection, Lift,
and Pumping Stations 31 32 32 32 32 32 32 32 33 33
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 32 32 32 32 32 32 32 32 32 32
Park Acreage 2,915 2,915 3,085 3,085 3,085 3,085 3,085 3,085 3,089 3,089
Public Landings 19 20 20 20 20 20 20 20 20 20
Library:
Number of Libraries 3 3 3 3 3 3 3 3 3 3
NOTES:
Source: Various County departments.
209