1. Queen Anne’s County Commissioners FY2018 Proposed Budget April 24, 25, 26, Gregg A. Todd, County Administrator Jonathan R. Seeman, Director, Budget, Finance & IT

2. FY2018 Budget Highlights
Budgeted Growth - $4.1 million or 3.2%, increase from $129.7 million in FY2017 to $133.8 million in FY2018
Revenue - Income tax & property tax make up 86% of total County revenue sources
Income Tax Revenue - Projected to grow by 6.4%
Property Tax Revenue - Relatively stagnant, projected to grow by 1.8%
Property Tax Assessable Base - Increase of 3.2% for area reassessed (north County)
Tax Rates - Remain the same, property tax rate is $0.8471/$100 of assessed value; income tax rate is 3.2%

3. FY2018 Budget Highlights
Constant Yield Rate is $ per $100 of assessed value, slightly lower than the current rate of $ per $100 of assessed value which will result in $670,000 in revenue above what would be collected at the Constant Yield rate
Employee Compensation Increase - 2% for county employees
Board of Education - Funded at Maintenance of Effort, increase of $1.3 million
Enhancements – 7 new full time positions
Southern Kent Island Sewer Project - $225,000 financial aid funding

4. FY2018 Budget Highlights AAA Bond Rating
“The county's 'AAA' reflects its stable economic base, supporting historically strong operating performance and a solid revenue framework, coupled with spending flexibility.”
“Fitch expects growth prospects for revenues to be above inflation given strong growth in income taxes and modest appreciation in residential property values.”
“Conservative budget management practices have contributed to consistent reserve levels maintained at amounts above what Fitch deems adequate for an 'aaa' reserve safety margin.”
Fitch Ratings – RAC 2017 Release Queen Anne’s County

5. FY2018 – Proposed Revenue by Source

6. FY2018 – Proposed Expenses by Function

7. Real Property Assessed Value
FY FY2018

8. Real Property Tax Rates by County
*Above rates are all for FY2017

9. Budget Revenue Changes FY2017 - FY2018

10. Enhancements

11. County Commissioners Proposed Budget
FY2018 Revenue
County Commissioners Proposed Budget

12. County Commissioners Proposed Budget
FY2018 Expenditures
County Commissioners Proposed Budget

13. FY2018 Expenditures, continued County Commissioners Proposed Budget

14. FY2018 Expenditures, continued County Commissioners Proposed Budget

15. FY2018 Expenditures, continued County Commissioners Proposed Budget

16. Maintenance of Effort

17. Board of Education Capital Projects

18. FY2018 Capital Budget Highlights
Capital Budget - $37 million
Includes $6.4 million for Board of Education projects
Includes $12.6 million for Southern Kent Island sewer project (SKI)
Bond Sale - $15.8 million, which includes:
New Courthouse - $8 million
Total of $4.6 million for Board of Education
*BOE includes Grasonville Elementary School Addition - $3.1 million
Asphalt Overlays - $2.5 million
Other Miscellaneous Projects - $ 0.7million
Funding Sources
Pay Go - $1.4 million
Grants - $1.1 million
Bonds - $15.8 million
Operating Funds - $ 0.7 million
Capital Fund Balance - $4.8 million
Other - $13.2 (primarily for SKI)

19. TOTAL GENERAL OBLIGATION DEBT
As of June 30, 2016:
Governmental Activities General Obligation Bonds Outstanding Before Issuance of Current Issue- $113,797,430
Governmental Activities Notes Outstanding - $1,913,199
Assumptions for Debt Issuance in FY17 – FY22:
Date of Issue: March 1
First Interest Payment: July 1
First Principal Payment: July 1 of following year
Interest Rate: Graduated rate adjustment 4% to 5 %

20. DEBT POLICY RATIOS
Current Debt Policy states outstanding general bonded debt and any new general obligation debt proposed is 2.5% or less of the total taxable assessable base. 20

21. Per Capita Debt to Per Capita Income
DEBT POLICY RATIOS
The Spending Affordability Committee recommended the County tie the debt per capita threshold (currently at $3,000 per capita) to currently defined per capita income. This measure shall be a ratio of debt per capita debt to per capita debt. Maximum threshold = 8%.
Per Capita Debt to Per Capita Income 21

22. DEBT POLICY RATIOS
Current Debt Policy also states that although there is some flexibility in the measurement of debt service compared to general fund expenditures and no absolute limit established by Government Finance Officers Association, anything above 12% of total general fund expenditures would be a cause to carefully monitor debt service. The Spending Affordability Committee recommended lowering this to 10%. 22

23. 6 Year Capital Budget
FY2018 – FY2023

24. 6 Year Capital Budget, continued FY2018 – FY2023

25. 6 Year Capital Budget, CONTINUED FY2018 – FY2023

26. 6 Year Capital Budget, continued FY2018 – FY2023

27. 6 Year Capital Budget, continued FY2018 – FY2023

28. 6 Year Capital Budget, continued FY2018 – FY2023

29. Potential Allocations
FY2018 Proposed Bond Sale
Potential Allocations
$15.8 Million

30. FY2018 Capital Budget by Funding Source

31. FY2018 Capital Budget by Funding Source, continued

32. FY2018 Capital Budget by Funding Source, continued

33. FY2018 Capital Budget by Funding Source, continued

34. Upcoming Dates & Considerations
Public Hearings - April 24, 25, 26
Work Session - May 9
Budget Adoption - May 23