Queen Annes County Commissioners County Administrators FY 2021

Queen Anne’s County Commissioners County Administrator’s FY 2021 Budget March 24, 2020 Todd R. Mohn, County Administrator Jonathan R. Seeman, Director, Budget, Finance & IT

2 FY 2021 Budget Highlights • • • Budget transmitted during global pandemic as well as market and economic volatility and uncertainty A slowdown in economic activity will impact our revenue sources, primarily income taxes, almost 40% of our budget—income taxes affected by number of jobs, wages, investment activity Going into this period, our local economy was strong, income tax growing, wage growth higher than State average and most counties It is early to be able to forecast the impact of the current slowdown There is generally a lag in income tax distributions, so we could expect the largest impact in second half of FY 21 and in FY 22 Our revenue estimates are conservative and scaled back slightly, but do not take into account a slowdown or recession The County is in a strong fiscal state, as evidenced by two AAA bond ratings We have a sizeable Rainy Day Fund ($11 million) and a Revenue Stabilization Fund ($6 million) We must be prepared to act quickly and decisively to take the difficult but necessary actions to bring our operating budget into balance if that need arises

3 FY 2021 Budget Highlights • Budgeted Growth - $4. 7 million or 3. 2%, increase from $145. 0 million in FY 2020 to $149. 7 million in FY 2021 • Revenue - Income tax & property tax make up 87% of total County revenue sources • Income Tax Revenue - Projected to grow by 5% • Property Tax Revenue - Projected to grow by 2. 0% • Tax Rates - Remain the same, property tax rate is $0. 8471/$100 of assessed value; income tax rate is 3. 2%

4 FY 2021 Budget Highlights • Board of Education – Funded at Maintenance of Effort, a total increase of $1. 5 Million • Budget reflects cost increases in health benefits for employees and retirees • Budget includes Contingency funding for County response to Coronavirus outbreak • Virtually all new positions approved in the budget are funded for ½ of the fiscal year in order to consider any potential fiscal/economic changes • County maintains a Rainy Day Fund of $11. 4 Million, and a Revenue Stabilization Fund of $6. 0 Million

5 FY 2021 Budget Highlights • Additional funding provided for Active Threat activities and security measures • County funding for Animal Services, staffing and operation of the County animal shelter • Funding for improved security at the County Courthouse • New positions in the Department of Emergency Services for Paramedics and Dispatchers • Additional funding provided for Economic Development Incentive Fund • Funds for management and professional positions in Animal Control, Detention Center, Aging and Transportation, QACTV, and Finance

6 FY 2021 Budget Revenues County Administrator’s Budget

7 FY 2021 Budget Expenditures County Administrator’s Budget

8 FY 2021 Budget Expenditures County Administrator’s Budget - Continued

9 FY 2021 Budget Expenditures County Administrator’s Budget - Continued

10 FY 2021 Budget Expenditures County Administrator’s Budget - Continued

11 FY 2021 – Proposed Revenue by Source TOTAL PROPOSED BUDGET Other Local Taxes 7% $149, 746, 560 Miscellaneous 1% Intergovernmental 2% Service Charges 2% Transfers In & Fund Bal 1% Income Tax 39% Property Tax 48%

12 FY 2021 – Proposed Expenses by Function TOTAL PROPOSED County Admin BUDGET $149, 746, 560 4% Debt Svs - BOE 4% Other Expenses 7% Debt Svs - County 4% Education 41% Other Agencies 15% Parks and Rec 4% Public Works 8% Public Safety 10% Community Services 2% Planning & Zoning 1%

e m or Ci m Ch ty or ar e le Co s u Al nty le Fr gan ed y er Ga ick rr Ha ett rfo rd Ce cil Ke Ca nt rr Pr in Ho oll ce w Ge ard o So rge m 's Do er rc set he st M Car er on ol tg in W om e as er hi y ng t An C on ne alv Ar ert u W nd ico el S m Qu t. M ico ee ar n y's A W nne or 's ce st e Ta r lb ot Ba lti Ba *Above rates are all for FY 2018 $ 0, 6372 $ 0, 8450 $ 0, 8471 $ 0, 8478 $ 0, 9346 $ 0, 9350 $ 0, 9370 $ 0, 9480 $ 0, 9786 $ 0, 9800 $ 1, 0000 $ 1, 0140 $ 1, 0180 $ 1, 0220 $ 1, 0414 $ 1, 0420 $ 1, 0560 $ 1, 0600 $ 1, 0870 $ 1, 1000 $ 1, 1410 $ 2, 2480 13 FY 2020 Real Property Tax Rates by County

14 Revenue/Expenditure Changes FY 2019 - FY 2020 ($ in millions)

15 Enhancements

16 FY 2021 Capital Budget Highlights Capital Budget - $41. 9 million, including: • Board of Education - $7. 2 million, including KIHS roof replacement, building assessment projects, Technology Plan, security measures, bus replacements • Kent Island Library Expansion - $6. 5 million • Asphalt Overlays - $1. 7 million • Volunteer Fire Companies - $0. 6 million • Parks - $1. 7 million, including athletic field and playground work, trail development • Computer Aided Dispatch - $1. 6 million • Detention Center Renovation - $2. 7 million • Sheriff pursuit replacement vehicles - $0. 6 million • Southern Kent Island Sewer System - $9. 1 million

17 6 Year Capital Budget FY 2021 – FY 2026

18 6 Year Capital Budget - Continued FY 2021 – FY 2026

19 6 Year Capital Budget - Continued FY 2021 – FY 2026

20 6 Year Capital Budget - Continued FY 2021 – FY 2026

21 6 Year Capital Budget - Continued FY 2021 – FY 2026

22 6 Year Capital Budget - Continued FY 2021 – FY 2026

23 FY 2021 Capital Budget by Funding Source

24 FY 2021 Capital Budget - Continued by Funding Source

25 FY 2021 Capital Budget - Continued by Funding Source

26 FY 2021 Capital Budget - Continued by Funding Source

27 Upcoming Dates & Considerations • County Administrator’s Budget Release - March 24 • Work Sessions - March 31, April 7, 9, 14 & May 12 • County Commissioner’s Budget Release - April 21 • Public Hearings – May 4, 5 & 6 • Budget Adoption – June 9