Fiscal Year 2010 CAFR (PDF)

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

QUEEN ANNE'S COUNTY, MARYLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2010
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal 1-5
Certificate of Achievement for Excellence in Financial Reporting 7
Organization Chart 8
Certain Elected and Other Officials 9
FINANCIAL SECTION
Independent Auditor's Report 11-12
Management's Discussion and Analysis (required supplementary information) 13-35
BASIC FINANCIAL STATEMENTS 37
Government-Wide Financial Statements
Statement of Net Assets 38-39
Statement of Activities 40-41
Governmental Fund Financial Statements
Balance Sheet 42-43
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets 45
Statement of Revenues, Expenditures and Changes in Fund Balances 46-47
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 48-49
Enterprise Fund Financial Statements
Statement of Net Assets 50-51
Statement of Revenues, Expenses, and Changes in Fund Net Assets 52-53
Statement of Cash Flows 54-55
Fiduciary Fund Statements
Statement of Fiduciary Net Assets 56
Statement of Changes in Fiduciary Net Assets 57
Notes to Financial Statements 58-111
REQUIRED SUPPLEMENTARY INFORMATION 113
Other Post-Employment Benefits (OPEB) Trust
Schedule of Funding Progress and Schedule of Participating Agencies' Contributions 114-115
Budgetary Comparisons for General and Major Special Revenue Funds 116
General Fund
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 117
Schedule of Revenues and Other Financing Sources - Budgetary Basis 118-119
Schedule of Expenditures and Other Financing Uses - Budgetary Basis 120-121
Roads Board Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 122

QUEEN ANNE'S COUNTY, MARYLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2010
TABLE OF CONTENTS (CONTINUED)
Page(s)
FINANCIAL SECTION (CONTINUED)
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
(SUPPLEMENTARY INFORMATION) 123
Non-Major Governmental Funds 125-127
Combining Balance Sheet 128-130
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 132-134
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budgetary Basis 136-140
Capital Projects Funds 141
Schedule of Appropriations and Expenditures 142-145
School Impact Fees Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 146
Non-Major Enterprise Funds 147-149
Combining Statement of Net Assets 150-151
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 152-153
Combining Statement of Cash Flows 154-155
Fiduciary Funds 157-159
Other Post-Employment Benefit Trust Fund
Combining Statement of Fiduciary Net Assets 160
Combining Statement of Changes in Fiduciary Net Assets 161
Agency Funds
Combining Statement of Fiduciary Net Assets 163
Combining Statement of Changes in Fiduciary Net Assets 164-165
Changes in Capital Assets, Interfund Receivables and Payables, and Interfund Transfers 167
Detailed Schedule of Changes in Capital Assets 168
Detailed Schedule of Interfund Receivables and Payables 169
Detailed Schedule of Interfund Transfers 170-173
Community Partnerships for Children Special Revenue Fund 175
Combining Balance Sheets - By Grantor 176-177
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
By Community Partnership Agreements (CPA) and
Non-Community Partnership Agreements (Non-CPA) 178-181
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budgetary Basis 182-183
STATISTICAL SECTION (UNAUDITED) 185
Table
1 Net Assets by Component - Government-Wide 186-187
2a Changes in Net Assets - Government-Wide 188-191
2b General Tax Revenues - Governmental Activities 192
3 Fund Balances - Governmental Funds 193
4 Changes in Fund Balances - Governmental Funds 194-195
5 Assessed Value of Taxable and Exempt Property 197
6a Real Property Tax Rates - County Direct Rate 198
6b Real Property Tax Rates - County Special Taxing Districts 199
6c Real Property Tax Rates - Overlapping Governments - Towns 200-201
7 Ten Highest Commercial Property Taxpayers 202
8 Property Tax Levies and Collections 203
9 Ratios of Outstanding Debt by Type 204
10 Ratios of General Bonded Debt Outstanding 205
11 Computation of Net Direct and Overlapping Debt 207
12a Computation of Legal Debt Margin 208-209
12b Computation of Local Debt Limit 210
13 Principal Employers 211
14 Demographic Statistics 212
15 County Government Employees - Full-Time Equivalents 214
16 County Government Employees - Full-Time Only by Function 215
17 Operating Indicators by Function 216
18 Capital Asset Statistics by Function 217

Introductory Section

QUEEN ANNE’S COUNTY DEPARTMENT
OF BUDGET AND FINANCE
THE LIBERTY BUILDING
107 N. LIBERTY STREET
CENTREVILLE, MARYLAND 21617
TAX DIVISION (410) 758-0414 FAX: (410) 758-4405
ACCOUNTING (410) 758-4064 FAX: (410) 758-3036
COUNTY COMMISSIONERS ——————————————————
TDD (410) 758-2126 www.qac.org EREN L. ROSE, CPA
STEVEN J. ARENTZ – AT LARGE CHIEF ACCOUNTING OFFICER
DAVID L. DUNMYER – DISTRICT 1
BOB SIMMONS – DISTRICT 2
PHILIP L. DUMENIL – DISTRICT 3 MARIE K. LANGE
DAVE OLDS – DISTRICT 4 CHIEF TREASURY OFFICER
JOHN P. BORDERS, JR., COUNTY ADMINISTRATOR
MARGIE A. HOUCK, EXECUTIVE ASSISTANT TO COUNTY COMMISSIONERS
December 16, 2010
The Board of County Commissioners and
The Citizens of Queen Anne’s County, Maryland
Formal Transmittal of the Comprehensive Annual Financial Report (CAFR)
State law requires that all general-purpose governments publish a complete set of financial
statements presented in conformity with accounting principles generally accepted in the United
States of America (GAAP) and audited in accordance with auditing standards generally accepted
in the United States of America by a firm of licensed certified public accountants. Pursuant to that
requirement, we hereby issue the comprehensive annual financial report of Queen Anne’s
County, Maryland for the fiscal year ended June 30, 2010.
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 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 Clifton Gunderson 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, 2010, 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
unqualified opinion that Queen Anne’s County’s financial statements for the fiscal year ended
June 30, 2010, are fairly presented in conformity with GAAP. The independent auditor’s report is
presented as the first component of the financial section of this report.
- 1 -

The independent audit of the financial statements of Queen Anne’s County is part of a broader,
federally mandated, “Single Audit” designed to meet the special needs of federal grantor
agencies. The standards governing Single Audit engagements require the auditor to report not
only on the fair presentation of the financial statements, but also on the audited government’s
internal controls and compliance with legal requirements, with special emphasis on internal
controls and legal requirements involving the administration of federal awards. These reports are
available in Queen Anne’s County’s separately issued Single Audit report.
GAAP require 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 MD&A and should be read in conjunction with it. Queen Anne’s County’s MD&A can
be found immediately following the report of the independent auditor.
PROFILE OF THE GOVERNMENT
Queen Anne’s County is situated on the Eastern Shore of Maryland. It is bordered to the north by
Kent County, to the east by the State of Delaware, to the south by Caroline and Talbot counties,
and to the west by the Chesapeake Bay. Access to the western shore of Maryland is provided by
the Chesapeake Bay Bridge. The County is 373 square miles in area and has approximately
48,650 citizens. The County seat is located in Centreville. The County Commissioners of Queen
Anne’s County are empowered to levy a property tax on both real and personal properties located
within its boundaries.
Queen Anne’s County was formed in 1706 and is governed by a five-member Board of County
Commissioners. County code provides that one Commissioner be elected purely at large; the
remaining four Commissioners must reside in specific districts, but are elected at large. The
Commissioners operate under Maryland’s Code Home Rule form of government. Both the
executive and legislative functions of the County are vested with the Board of County
Commissioners.
Queen Anne’s County provides a full range of services including public safety (police, volunteer
fire protection, emergency services, detention center, and animal control), highways and streets,
solid waste in landfill, 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, and certain recreational
facilities as Enterprise Funds.
The appropriated annual budget is prepared by fund, function (e.g. public safety), and department
(e.g. detention center). Department Heads may make transfers of appropriations within a
department of up to $10,000 with the approval of the County Administrator. Transfers of
appropriations or appropriation of new revenues in excess of $10,000 require the approval of the
County Commissioners. Budget to actual comparisons are provided in this report for individual
governmental funds for which an appropriated annual budget has been adopted. The budget
comparisons for the general fund and major special revenue funds are presented on pages 117
to 122 as part of the Required Supplementary Information portion of this report. For non-major
funds with appropriated annual budgets, budget to actual comparisons are presented in the
Supplementary Information subsection of this report on pages 136 to 140; on page 146; and on
pages 182 to 183.
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ECONOMIC OUTLOOK AND CONDITION
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which Queen Anne’s
County operates.
LOCAL ECONOMY
Queen Anne’s County currently enjoys a relatively stable economic environment. Local
indicators, such as lower than average unemployment, stable property values, and a manageable
debt burden all point to continued stability.
Low Unemployment - Unemployment is typically below the state and national averages, as
shown in the chart below. The June 2010 rate for the County was 6.5%, compared to the state’s
rate of 7.3% and the U.S.’s rate of 9.5%. The 2010 average rate for the county was 7.1%.
Unemployment(cid:2)Rate
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Jun(cid:2)05 Dec(cid:2)05 Jun(cid:2)06 Dec(cid:2)06 Jun(cid:2)07 Dec(cid:2)07 Jun(cid:2)08 Dec(cid:2)08 Jun(cid:2)09 Dec(cid:2)09 Jun(cid:2)10
Queen(cid:3)Anne's(cid:3)County Maryland United(cid:3)States
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. Three of
the five 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 nearly 60% of the workforce to
commute to locations outside the County, primarily to higher paying jobs in the Baltimore and
Washington areas. Although local income tax decreased by 26.2% during fiscal year 2010, to
pre-fiscal year 2004 levels, these positive employment figures and other economic indicators lead
us to believe that this reduction in income tax is primarily due to loss of capital gains tax.
Stable Property Values - Fiscal year 2010 property tax revenues increased 7.1% above the
previous fiscal year, although the tax rate remained the same. In its fiscal year 2011 budget,
Queen Anne’s County projected a 1.1% decrease in property taxes, primarily because the
property tax rate was reduced slightly, from $0.7700 to $0.7671 per $100 of assessed value.
Housing demand and prices are relatively stable, with County revenues related to housing activity
improving slightly in fiscal year 2010. Also, recordation tax revenue, a leading indicator of the
health of the local real estate market, increased by 4.7% over the prior fiscal year.
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Manageable Debt Burden - General bonded debt outstanding, as a percentage of total taxable
assessable base, has improved over the last ten fiscal years, from 2.11% in fiscal year 2001 to
1.22% in fiscal year 2010.
LONG TERM FINANCIAL PLANNING
Rainy Day Fund – In calendar year 2002, the County adopted Ordinance No. 02-08 to establish
a Rainy Day Fund. The ordinance requires that the County maintain a fund balance reserve for
contingencies in an amount equal to 7% of general fund operating revenues budgeted for the
following fiscal year. To use these funds, the Commissioners must publicly state the nature of the
emergency and its expected long-term effects on the finances of the County. In addition,
sufficient funds must be appropriated over the next two fiscal years to replenish this Fund to the
minimal balance required by this Ordinance. The Rainy Day Fund balance is currently at the
target level.
Capital Projects - The County Commissioner’s six-year capital program, starting with fiscal year
2011, prioritizes capital expenditures over these years to meet the County’s needs. The six-year
program includes: $68.3 million for construction and renovation of various school facilities; $10.5
million for the Bay Bridge Airport; and $6.3 million for a new community swimming pool.
Offsetting half of the school construction and renovation costs, $35.4 million in grants and other
non-operating, non-debt resources are anticipated. Grants of $10.2 million will cover nearly 97%
of the Airport costs and another $6.3 million will cover 100% of the costs for the community
swimming pool.
Budget Committee – In calendar year 2009, the Commissioners adopted Resolution 09-10,
which established a Citizens Budget Committee. For the fiscal year 2011 budget, this Committee
was asked to advise the County Commissioners in developing the County’s annual operating
budget; to examine the feasibility of out-sourcing selected services by the County; and to advise
the Commissioners in ways to make the financial processes of the government more transparent
to the citizens. Committee meetings were open to the public and a number of citizens attended
and participated in the meetings.
Although many of the recommendations of the Citizens Budget Committee to decrease
expenditures were implemented in the fiscal year 2011 budget, the Commissioners voted against
increasing the property and income tax rates.
FINANCIAL POLICIES
Bond Ratings - The financial policies and management practices of Queen Anne’s County were
recognized recently by two major rating agencies. Fitch Rating Service issued an AA+ bond
rating and Moody’s issued a rating of Aa2.
Debt Management Policy – In calendar year 2009, the County adopted Resolution 09-13, which
establishes the County’s Local Dept Policy. In accordance with this policy, the Director of
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 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.
- 4 -

AWARDS AND ACKNOWLEDGMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for Excellence in Financial Reporting to Queen Anne’s County,
Maryland for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30,
2009. The Certificate of Achievement is a prestigious national award that recognizes
conformance with the highest standards for preparation of state and local government financial
reports. In order to be awarded a Certificate of Achievement, the County must publish an easily
readable and efficiently organized comprehensive annual financial report. This report must
satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. Queen Anne’s County,
Maryland has received a Certificate of Achievement for the last eleven consecutive years (fiscal
years 1999-2009). We believe our current comprehensive annual financial report continues to
conform to the Certificate of Achievement program requirements and we are submitting it to
GFOA to determine its eligibility for another certificate.
The preparation of the comprehensive annual financial report was made possible by the
dedicated service of the entire staff of the Finance Office. Each member of the department has
my sincere appreciation for the contributions made in preparation of this report. Special
recognition is given to members of the Audit Team: Nichole Hepfer, James Griffin, Barbara
Faulkner, Joyce Hurlock, and Teresa Ward. Their dedication and professionalism in the
preparation of Queen Anne’s County financial statements has resulted in consistently accurate
and transparent financial reporting. Special recognition is also given to George Harvey for his
technical and creative input, including the cover design.
Respectfully submitted,
John P. Borders, Jr., CPA
County Administrator
- 5 -

- 6 -

- 7 -

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- 8 -

QUEEN ANNE’S COUNTY, MARYLAND
GOVERNMENTAL ORGANIZATION
CERTAIN ELECTED AND OTHER OFFICIALS
AS OF JUNE 30, 2010
CERTAIN ELECTED OFFICIALS
County Commissioners Eric S. Wargotz, M.D., At Large
Courtney M. Billups, District 1
Paul L. Gunther, District 2
Gene M. Ransom, III, District 3
Carol R. Fordonski, District 4
State’s Attorney Lance G. Richardson, Esq.
Sheriff Raymond G. Hofmann
CERTAIN DEPARTMENT HEADS AND OTHER OFFICIALS
County Administrator John P. Borders, Jr., CPA
Chief Operating Officer Gregg A. Todd
Director of Public Works Todd R. Mohn
Director of Economic Development,
Agriculture, and Tourism Faith E. Rossing
Chief of Land Use and Zoning J. Steve Cohoon
Chief of Community and
Environmental Planning Helen M. Spinelli
Chief Accounting Officer Eren L. Rose, CPA
Chief Treasury Officer Marie K. Lange
County Attorney Patrick E. Thompson, Esq.
Independent Auditor Bond Counsel Financial Advisor
Clifton Gunderson LLP McKennon, Shelton Public Advisory Consultants
Certified Public Accountants & Henn, LLP Baltimore, Maryland
Timonium, Maryland Baltimore, Maryland
- 9 -

- 10 -

(cid:2)(cid:3)
(cid:4)
Independent Auditor’s Report
The Board of Commissioners
of Queen Anne's County, Maryland
Centreville, Maryland
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, 2010, which collectively comprise the County’s basic
financial statements as listed in the table of contents. These financial statements are the
responsibility of County’s management. Our responsibility is to express opinions on these
financial statements based on our audit. We did not audit the component unit financial
statements of the Board of Education of Queen Anne’s County and the Queen Anne’s County
Free Library, which comprise 87% of the assets and 97% of the revenues of the discretely
presented component units. Those financial statements were audited by other auditors whose
reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts
included for the above mentioned component units, is based solely on the reports of the other
auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion, based on our audit and the reports of other auditors, the financial statements
referred to above present fairly, in all material respects, the respective financial position of the
governmental activities, the business-type activities, the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information of the County
as of June 30, 2010, and the respective changes in financial position and cash flows, where
applicable, for the year then ended in conformity with accounting principles generally accepted
in the United States of America.
(cid:5)
(cid:2) (cid:2) (cid:2)
- 11 -

In accordance with Government Auditing Standards, we have also issued our report dated
December 13, 2010 on our consideration of the County’s internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts and
grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
The Management’s Discussion and Analysis; Schedule of Funding Progress; Schedule of
Participating Agencies’ Contributions; and Schedule of Revenues, Expenditures, Other
Financing Sources and Changes in Fund Balance – Budget and Actual – General Fund and
Roads Board Special Revenue Fund as referenced in the table of contents are not a required part
of the basic financial statements but are supplementary information required by accounting
principles generally accepted in the United States of America. We have applied certain limited
procedures, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of the required supplementary information. However, we did not
audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County’s basic financial statements. The introductory section,
combining and individual fund financial statements and supplementary schedules listed as
supplementary data, and statistical section, as listed in the table of contents are presented for
purposes of additional analysis and are not a required part of the basic financial statements. The
combining and individual fund financial statements and supplementary schedules, listed as
supplementary data have been subjected to the auditing procedures applied in the audit of the
basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation
to the basic financial statements taken as a whole.
The introductory section and statistical tables listed in the table of contents have not been
subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we express no opinion on them.
(cid:2)(cid:3)(cid:4)
Baltimore, Maryland
December 13, 2010
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Management’s Discussion and Analysis
Introduction
This section of the Comprehensive Annual Financial Report of Queen Anne’s County, Maryland
(the County) presents a narrative overview and analysis of the financial activities of Queen
Anne’s County Government for the fiscal year ended June 30, 2010. We encourage readers to
use the information presented here in conjunction with the accompanying letter of transmittal, the
basic financial statements and the accompanying notes to those financial statements.
Adoption of new GASB Statements
During fiscal year 2010, the County adopted GASB Statement No. 51, Accounting and Financial
Reporting for Intangible Assets. Under the new standard, the County recorded certain
easements and other intangible land-related rights as non-depreciable intangible assets, as their
useful lives are inexhaustible.
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: Thegovernment-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.
Thestatement of net assets presents information on all of Queen Anne’s County Government’s
assets and liabilities, with the difference between the two reported as net assets. Over time,
increases or decreases in net assets may serve as a useful indicator of whether the financial
position and condition of Queen Anne’s County Government is improving or deteriorating.
Thestatement of activities presents information showing how the government’s net assets
changed during the most recent fiscal year. All changes in net assets 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).
- 13 -

Thegovernmental activities of Queen Anne’s County Government include general government,
public safety, public works, health, social services, education, parks and recreation, 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,
public marinas, parks, and various recreational facilities.
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, Queen Anne’s County Free Library, and the Queen Anne’s
County Public Housing Authority. Financial information for these component units is reported
separately from the financial information presented for the primary government itself. The
government-wide financial statements can be found on pages 38 to 41 of this report.
Fund Financial Statements: Afund is a group of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. Queen
Anne’s County Government, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All of the funds of
Queen Anne’s County Government can be divided into three categories: governmental funds,
proprietary funds, and fiduciary funds. Fund financial statements can be found throughout this
report, with basic statements found on pages 42 to 57.
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 for governmental funds and the statement of
revenues, expenditures, and changes in fund balances for governmental funds provide a
reconciliation to facilitate this comparison between governmental funds andgovernmental
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 on pages 45 and 48 to
49.
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: roads board,
department of aging, housing and community services, community partnerships for children,
dredging special assessments, Kent Narrows, law library, inmate welfare, agricultural transfer,
rural legacy, and purchase of development rights. A budgetary comparison statement has been
provided for each of these funds, which can be found on pages 117 to 122; 136 to 140; 146; and
182 to 183 of this report.
- 14 -

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, marinas, parks, and other recreational facilities. The basic proprietary fund
financial statements can be found on pages 50 to 55 of this report, as well as non-major
statements on pages 150 to 155.
Fiduciary funds: Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statements because the resources of those funds are not available to support Queen
Anne’s County Government’s own programs. The County acts as a fiduciary for two trust and six
agency funds. The accounting used for fiduciary funds is much like that used for proprietary
funds. The basic fiduciary fund financial statements can be found on pages 56 to 57 of this
report, while further detail can be found on pages 160 to 165.
Notes to the financial statements: The notes provide additional information that is essential to
a full understanding of the data provided in the government-wide and fund financial statements.
The notes to the financial statements can be found on pages 58 to 111 of this report.
Government-wide Financial Analysis
Statement of Net Assets
A summary of government-wide assets, liabilities, and net assets is as follows:
Governmental Activities Business Type Activities Total
Summary of Net Assets 2010 2009 2010 2009 2010 2009
Current and Other Assets $ 62,893,658 $ 54,440,061 $ 25,185,923 $ 26,467,702 $ 8 8,079,581 $ 80,907,763
Capital Assets 1 43,124,217 137,608,599 100,360,772 99,900,415 243,484,989 237,509,014
Total Assets 206,017,875 192,048,660 125,546,695 126,368,117 331,564,570 318,416,777
Noncurrent liabilities 100,708,984 71,411,949 23,470,640 23,963,800 124,179,624 95,375,749
Other liabilities 7 ,112,156 7,508,361 4,862,873 5,370,954 11,975,029 12,879,315
Total Liabilities 107,821,140 78,920,310 28,333,513 29,334,754 136,154,653 108,255,064
Net assets:
Invested in capital assets, net
of related debt 121,702,025 123,217,989 79,032,373 77,146,688 200,734,398 200,364,677
Restricted 22,290,307 16,582,660 18,180,809 19,886,675 40,471,116 36,469,335
Unrestricted ( 45,795,597) (26,672,299) - - (45,795,597) (26,672,299)
Total Net Assets $ 98,196,735 $ 1 13,128,350 $ 97,213,182 $ 97,033,363 $ 1 95,409,917 $ 210,161,713
The County’s total current and other assets increased by $7.2 million, or 8.9 percent, to $88.1
million. The County’s total assets exceeded its liabilities at the close of fiscal year 2010 by
$195.4 million.
Net assets are divided into three categories: invested in capital assets (net of related debt);
restricted net assets; and unrestricted net assets. By far, the largest portion, $200.7 million, of
the County’s total net assets 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
- 15 -

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 $57.7 million at June 30, 2010. Absent the effect of this relationship, the County
would have reported positive unrestricted net assets of $11.9 million on its government-wide
financial statements, rather than the negative unrestricted net assets of $45.8 million reported
herein. For a multi-year view of this calculation, see the Footnote presented in Table 1 of the
Statistical Section.
An additional $40.5 million of the County’s total net assets represents resources that are subject
to restrictions on how they may be used. For governmental activities, this amount includes: $9.9
million of unspent bond proceeds restricted for specific capital projects; $7.1 million in net assets
restricted for contingency/revenue stabilization during periods of economic downturn (general
government function); $3.6 million restricted for housing and revolving loan receivables
(economic development function); and $669 thousand for federally confiscated funds’ mandates
and donation specifications (public safety function). For business-type activities, this amount
includes: $7.0 million restricted for subsequent year operations in those enterprise funds not
reported separately in the following restricted amounts; $6.7 million in allocations restricted for
Sanitary District capital projects or debt service; $3.7 million restricted to meet Sanitary District
debt covenants; and $753 thousand restricted by Sanitary District developer exaction project
requirements.
At the end of the current fiscal year, Queen Anne’s County Government reports positive balances
in two out of three categories of net assets, both for the government as a whole, as well as for its
separate governmental activities. Business-type activities report all non-capital net assets as
restricted, due to the inherent nature of those activities, and show a positive balance in both
categories.
- 16 -

Statement of Activities
The following table summarizes changes in net assets for governmental and business-type
activities during the year:
Governmental Activities Business Type Activities Total
Summary of Changes in Net Assets 2010 2009 2010 2009 2010 2009
Revenues:
Program revenues:
Charges for services $ 4,518,799 $ 4 ,316,993 $ 9,970,816 $ 9,356,501 $ 1 4,489,615 $ 13,673,494
Operating grants and contributions 6,698,744 12,870,537 203,269 45,824 6,902,013 12,916,361
Capital grants and contributions 8,460,623 2,865,454 2,562,943 1,041,115 11,023,566 3,906,569
General revenues:
Property taxes 59,267,240 55,362,114 - - 59,267,240 55,362,114
Local income tax 25,715,247 34,834,937 - - 25,715,247 34,834,937
Other local taxes
Admission and amusement taxes 208,736 2 35,588 - - 208,736 235,588
Recordation taxes 3,734,340 3,565,584 - - 3 ,734,340 3,565,584
Hotel taxes 397,141 4 28,998 - - 397,141 428,998
County transfer taxes 1,147,179 1,103,095 - - 1 ,147,179 1,103,095
Investment income 144,553 6 42,472 436,045 595,279 5 80,598 1,237,751
Gain on sale of capital assets 26,731 1,540,404 - - 26,731 1,540,404
Miscellaneous 786,719 2,182,525 962,540 918,688 1 ,749,259 3,101,213
Total Revenues 111,106,052 119,948,701 14,135,613 11,957,407 1 25,241,665 131,906,108
Expenses:
Governmental Activities:
General government 14,089,387 13,317,683 - - 14,089,387 13,317,683
Public safety 25,361,341 23,570,049 - - 25,361,341 23,570,049
Public works 9,432,489 10,237,718 - - 9,432,489 10,237,718
Health 1,663,321 1,590,004 - - 1 ,663,321 1,590,004
Social services 5,554,667 5,617,621 - - 5 ,554,667 5,617,621
Education 53,491,659 53,296,238 - - 53,491,659 53,296,238
Parks and recreation 3,618,427 5,060,018 - - 3 ,618,427 5,060,018
Libraries 1,473,689 1,414,008 - - 1 ,473,689 1,414,008
Conservation of natural resources 5,281,372 2,473,308 - - 5 ,281,372 2,473,308
Economic and Community development 2,001,306 2,197,116 - - 2 ,001,306 2,197,116
Interest and fiscal charges 3,510,678 2,831,002 - - 3 ,510,678 2,831,002
Business-type Activities:
Water and sewer - - 10,610,705 10,689,782 1 0,610,705 10,689,782
Parks and recreation - - 2,789,901 2,178,163 2 ,789,901 2,178,163
Public marinas - - 96,739 38,050 9 6,739 38,050
Airport - - 1,017,780 879,906 1 ,017,780 879,906
Total Expenses 125,478,336 121,604,765 14,515,125 13,785,901 1 39,993,461 135,390,666
Decrease in Net Assets before Transfers ( 14,372,284) (1,656,064) ( 379,512) (1,828,494) (14,751,796) (3,484,558)
Transfers in (out) ( 559,331) (3,348,074) 559,331 3,348,074 - -
Increase (Decrease) in Net Assets ( 14,931,615) (5,004,138) 1 79,819 1,519,580 (14,751,796) ( 3,484,558)
Net Assets - Beginning of Year 113,128,350 118,132,488 97,033,363 95,513,783 2 10,161,713 213,646,271
Net Assets - End of Year $ 98,196,735 $ 113,128,350 $ 97,213,182 $ 97,033,363 $ 1 95,409,917 $ 210,161,713
- 17 -

Governmental activities:
Revenues for governmental activities were $111.1 million for fiscal year 2010. The following
chart depicts revenues by source for governmental activities:
Revenues by Source -
Governmental Activities
For the Year Ended June 30, 2010
Investment Income
0.13%
County transfer taxes
1.03% Gain on Sale of Capital Miscellaneous
Assets 0.71%
Recordation taxes 0.02%
Hotel taxes
3.36% 0.36% Charges for services
4.07%
Admission and
amusement taxes
0.19% Operating, capital &
restricted grants
Local income tax 13.65%
23.14%
Property taxes
53.34%
(cid:2) Taxes comprise the largest source of County revenue, totaling $90.5 million (81.4
percent) of total revenue for fiscal year 2010. Of that amount, property and local income
tax together yielded $85.0 million (76.5 percent) of all revenue. Each County sets its own
property and income tax rates, within parameters established by the State. For fiscal
years 2010 and 2009, the County’s property tax rate remained constant at $.770 per $100
of assessed value of real property, based on full cash value of that property. The
County’s local income tax rate remained at 2.85 percent of the State taxable income for
calendar years 2010 and 2009. There is no local sales tax in the State of Maryland.
(cid:2) Operating grants and contributions, totaling $6.7 million, reflect grants from Federal and
State agencies that support specific County programs. Programs that benefit the most
this year are: social services ($2.7 million or 39.8 percent) and public safety ($1.9 million
or 28.2 percent).
(cid:2) Charges for services, totaling $4.5 million, reflect fees charged to County citizens. These
primarily support public safety ($1.3 million or 28.0 percent) and general government
functions ($1.3 million or 28.0 percent).
(cid:2) Capital grants and contributions, totaling $8.5 million, reflect contributions from Federal
and State agencies, as well as developers. Capital activities that benefit the most this
year are: conservation of natural resources ($4.2 million or 49.5 percent) and social
services ($2.7 million or 31.8%).
- 18 -

Expenses for all governmental activities were $125.5 million for fiscal year 2010. The following
chart depicts expenses by function for governmental activities:
Expenses -
Governmental Activities
For the Year Ended June 30, 2010
Economic and
Conservation of
Community
natural resources development Interest and fiscal
4.21% 1.59% charges
2.80%
Libraries General government
1.17% 11.23%
Parks and recreation Public safety
2.88% 20.21%
Public works
Education 7.52%
42.63% Health
Social services 1.33%
4.43%
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 $53.5 million (42.6 percent). In order of priority,
public safety expenses totaled $25.4 million (20.2 percent); general government expenses were
$14.1 million (11.2 percent); public works and roads expenses were $9.4 million (7.5 percent);
social services expenses totaled $5.6 million (4.4 percent); conservation of natural resources
were $5.3 million (4.2 percent); parks and recreation expenses were $3.6 million (2.9 percent);
economic and community development expenses were $2.0 million (1.6 percent); and other
expenses were $6.6 million (5.4 percent).
The following table summarizes costs and program-related revenues for the same programs in
order of priority, yielding net service costs:
Expenses Program-Related Revenues Net Cost of Services
Net Cost of Governmental Activities 2010 2009 2010 2009 2010 2009
Education $ 53,491,659 $ 53,296,238 $ 1,285,201 $ 909,936 $ (52,206,458) $ (52,386,302)
Public Safety 25,361,341 23,570,049 3,457,898 2,934,508 (21,903,443) (20,635,541)
General Government 14,089,387 13,317,683 1,852,149 1,464,530 (12,237,238) (11,853,153)
Public Works 9,432,489 10,237,718 1,688,797 8,579,913 (7,743,692) (1,657,805)
Social Services 5,554,667 5,617,621 5,422,585 3,344,801 (132,082) (2,272,820)
Conservation of Natural Resources 5,281,372 2,473,308 4,385,045 844,413 (896,327) (1,628,895)
Parks and Recreation 3,618,427 5,060,018 932,408 1,328,792 (2,686,019) (3,731,226)
Economic and Community Development 2,001,306 2,197,116 654,083 646,091 (1,347,223) (1,551,025)
Other 6,647,688 5,835,014 - - (6,647,688) (5,835,014)
Total $ 125,478,336 $ 121,604,765 $ 19,678,166 $ 20,052,984 $ (105,800,170) $ (101,551,781)
- 19 -

Of the total cost of $125.5 million for governmental activities, $19.7 million (15.7 percent), of
those costs were covered by program-related revenues paid by individuals and external
governmental entities. Of these outside entities, individuals who benefited directly from County
programs were charged user fees of $4.5 million, while governments and other organizations that
benefited indirectly from these programs contributed operating grants of $6.7 million and capital
grants of $8.5 million.
County taxpayers paid for most of the remaining $105.8 million in net program costs, through a
variety of County taxes, for a total of $91.4 million. Net program costs of services provided to the
public, in order of net cost, were: $52.2 million for education; $21.9 million for public safety; $12.2
million for general government; $7.7 million for public works; $2.7 million for parks and recreation;
$1.3 million for economic and community development; $896 thousand for conservation of natural
resources; $132 thousand for social services; and $6.6 million for other services. See Changes in
Net Assets and General Fund Budgetary Highlights for further details.
Changes in net assets: Government-wide revenues, less expenses, plus/minus transfers in/out,
yield changes in net assets. During fiscal year 2010, governmental activities decreased the
County’s net assets overall by $14.9 million, compared to a decrease of $5.0 million in fiscal year
2009. The following discussion explains changes in net assets relative to the prior fiscal year.
Revenues for governmental activities decreased by $8.8 million (7.4 percent). The following key
revenues changed, when compared to the prior fiscal year:
(cid:2) Property tax revenue increased by $3.9 million (7.1 percent) during fiscal year 2010, from
$55.4 million to $59.3 million. Although the property tax rate remained the same for both
years ($0.77 per $100 assessed value), one third of the County’s property assessments
were still within the three-year assessment window that included higher real estate values
in effect at the time of assessment. In particular, the County’s fourth tax district, Kent
Island, includes much of the County’s Chesapeake Bay shoreline and many commercial
properties and constitutes about 43 percent of the County’s taxable assessed base. This
district was last re-assessed in December, 2008, based on property values in effect prior
to December, 2008, and in time for the fiscal year 2010 tax levy.
(cid:2) Local income tax, however, decreased by $9.1 million (26.2 percent decrease), from
$34.8 million to $25.7 million. This decrease reflects changes in taxable wages and
capital gains tax as they accrue to County citizens and as they flow through the State to
the County, as evidenced by the following information.
o Each year, the State holds some local income tax receipts as a reserve on behalf of
the counties, as shown in the table below:
Local Income Tax Reserve - Held by State of Maryland for Queen Anne's County
as of June 30 Tax Year Reserve Percent Change Increase/(Decrease)
2003 2001 $ 7 ,514,231
2004 2002 9 ,791,788 30% $ 2 ,277,557
2005 2003 1 0,814,022 10% 1 ,022,234
2006 2004 1 2,051,523 11% 1 ,237,501
2007 2005 1 2,303,288 2% 2 51,765
2008 2006 1 2,902,125 5% 5 98,837
2009 2007 1 1,695,290 -9% (1,206,835)
2010 2008 7 ,378,018 -37% (4,317,272)
- 20 -

o At the end of fiscal year 2010, the State decreased its Local Income Tax Reserve
held on behalf of Queen Anne’s County, by $4.3 million, from $11.7 million to $7.4
million. This Reserve is held by the State to issue tax refunds on behalf of individual
counties. As shown in the table above, this change represents a sharp drop of 37%
from fiscal year 2009 and brings the Reserve back to below fiscal year 2003 levels.
This reduction reflects receipts that are significantly less than the prior year, and,
according to State officials, is a direct result of the country’s recession.
o It is interesting to note that the County’s unemployment rate is typically below the
state and national averages, as noted in the table below:
Unemployment(cid:2)Rate
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Jun(cid:2)05 Dec(cid:2)05 Jun(cid:2)06 Dec(cid:2)06 Jun(cid:2)07 Dec(cid:2)07 Jun(cid:2)08 Dec(cid:2)08 Jun(cid:2)09 Dec(cid:2)09 Jun(cid:2)10
Queen(cid:3)Anne's(cid:3)County Maryland United(cid:3)States
o The June 2010 unemployment rate for the County was 6.5 percent, compared to the
state’s rate of 7.3 percent and the nation’s rate of 9.5 percent. If a portion of the
income tax reductions are related to losses on capital investments, then those income
tax reductions would not be a function of employment.
(cid:2) Gain on sale of capital assets decreased by $1.5 million because virtually no capital
assets were sold during the year.
(cid:2) Miscellaneous Revenue decreased by $1.4 million, from $2.2 million in fiscal year 2009 to
$787 thousand in fiscal year 2010. This change is due to the following two factors:
o The County participates in a health care consortium that purchases BlueCross
BlueShield insurance on behalf of its members, with the provision that claims in
excess of premiums will be covered by the collective members of the consortium. To
mitigate this risk, the County charges sufficient premiums to cover this possibility and
records a contingency liability in case costs exceed expectations. Each year, this
contingency is adjusted to actual costs.
o The County also collects workmen’s compensation insurance based on insurance
rates attributable to each class of worker and then undergoes an annual audit to
ascertain if those rates are accurate.
o The health care contingency account and the workmen’s compensation audit both
resulted in more revenues being realized in fiscal year 2009 than in the current year.
- 21 -

Health care and workmen’s compensation adjustments were higher by $700
thousand and $507 thousand, respectively, in fiscal year 2009 than in fiscal year
2010. These adjustments vary from year to year on a routine basis.
(cid:2) Investment Income decreased by $498 thousand, from $642 thousand in fiscal year 2009
to $145 thousand in fiscal year 2010. This change resulted both from fluctuations in cash
on hand and severe interest rate reductions. At the beginning of fiscal year 2009, the
County held $45.6 million in cash and the average daily rate of interest earned on County
investments in the Maryland Local Government Investment Pool (MLGIP), the County’s
sole investment vehicle, was 2.1 percent. One year later, the County held only $31.5
million in cash and interest rates averaged 0.47 percent. During fiscal year 2010, interest
rates remained negligible and ended the year at 0.21 percent. Even though cash
increased by $12.3 million during fiscal year 2010 (or 39 percent) to $43.7 million, interest
earnings fell.
Expenses for governmental activities increased by $3.9 million (3.2 percent) and transfers out to
business-type activities decreased by $2.8 million, for a net increase of $1.1 million. Key positive
and negative expense changes, in order of relative importance, are:
(cid:2) Conservation of Natural Resources increased by a net of $2.8 million (113.5 percent)
which was almost entirely resulting from Rural Legacy expenses increasing by $2.9
million (417.2 percent). This increase was due to the increase in easements purchased in
the Rural Legacy program, which were funded with State grants.
(cid:2) Public Safety expenses increased by a net of $1.8 million (7.6 percent) and were entirely
funded by the County. (1) Although overall personnel costs increased by $1.2 million (7.4
percent) from fiscal year 2009 to 2010, $743 thousand (47.4 percent) of the increase
related to other post-employment benefit costs. 2) In addition, regular personnel costs
increased overall by $416 thousand (3.0 percent). Emergency Services’ personnel costs
increased by $277 thousand (5.2 percent) due to a variety of reasons (career ladder
promotions, increase in health insurance costs, winter storms causing increase in
overtime). Personnel costs also increased in the Detention Center due to increased staff
to cover an increase in beds. 3) Fire Impact Fee distributions increased by $603
thousand (267.9 percent). In fiscal year 2010, all available funds were distributed to the
Fire Companies as of February 2010. In fiscal year 2009, only one distribution was made
to a specific Fire Company for the purchase of a ladder truck.
(cid:2) Parks and Recreation expenses decreased by $1.4 million (28.5 percent). In fiscal year
2009, there was a loss on disposal of capital assets of $1.5 million, compared to a small
loss of $5 thousand in fiscal year 2010. This loss in fiscal year 2009 resulted entirely from
an interdepartmental transfer of capital assets, consisting of the County’s Exhibition
Center and related property. Although this property used to be operated as a parks and
recreation facility, it was renovated into a business and tourism facility because of its
prime location at Kent Narrows.
(cid:2) Transfers Out decreased by $2.8 million (83.3 percent) from $3.3 million in fiscal year
2009 to $559 thousand in fiscal year 2010. This decrease resulted primarily from a one
time transfer of $2.8 million in fiscal year 2009 from the General Capital Projects Fund to
various enterprise funds in order to bring the negative cash and net asset balances in the
enterprise funds to a zero or near-zero balance, as these enterprise funds were never
intended to be entirely self-supporting. No such transfer was made in fiscal year 2010.
Any negative cash amounts were covered with an interfund payable / receivable entry;
however, transfers were not made for the purpose of bringing negative cash or net asset
balances to positive amounts.
- 22 -

Business-type activities:
Revenues, transfers in, and expenses for business-type activities were $14.1 million, $559
thousand, and $14.5 million, respectively, for fiscal year 2010. The following two charts depict
revenues by source and expenses by service for business-type activities:
Revenues by Source -
Business-Type Activities
For the Year Ended June 30, 2010
Investment
Miscellaneous
income
6.81%
3.08%
Operating & Charges for
capital grants & services
contributions 70.54%
19.57%
Expenses by Service -
Business-Type Activities
For the Year Ended June 30, 2010
Airport
Public marinas 7.01%
0.67%
Water and sewer
73.10%
Parks and
recreation
19.22%
Business-type activities increased the County’s net assets altogether by $180 thousand in fiscal
year 2010, which was $1.3 million (88.2 percent) less than the prior year’s increase of $1.5
million. The fiscal year 2010 change in net assets resulted primarily from:
(cid:2) Charges for services increased by $614 thousand (6.6 percent), from $9.4 million to
$10.0 million. The majority of the increase was due to increased demand in the Sewer
Operations Fund, compared to the prior fiscal year.
- 23 -

(cid:2) Capital grants increased by $1.5 million (146.2 percent), from $1.1 million to $2.6 million
in fiscal year 2010. The net increase in funding resulted from changes in several
projects. As a result of increased activity related to the new runway project, the Airport
had an increase of $1.2 million for capital projects; The Kent Narrows / Waterman’s
Rehabilitation project generated an additional $545 thousand more for the marinas
capital projects; three separate projects related to bulkheads and ramps in public
landings resulted in an additional $229 thousand; offsetting the increases in capital grants
was a decrease of $311 thousand for sewer capital projects; and $164 thousand less was
received for water capital projects.
(cid:2) Transfers in decreased from $3.3 million in fiscal year 2009 to $559 thousand in fiscal
year 2010. This decrease resulted primarily from transfers in of $2.8 million in fiscal year
2009 from the General Capital Projects Fund to various enterprise funds in order to bring
the negative cash and net asset balances in the enterprise funds to a zero or near-zero
balance. No such transfer was made in fiscal year 2010. Instead, any negative cash
amounts were covered with an interfund payable / receivable entry.
(cid:2) Operating expenses before transfers increased by $729 thousand (5.3 percent), from
$13.8 million in fiscal year 2009 to $14.5 million in fiscal year 2010, for all business-type
activities. This change results from several significant factors: (1) Staff costs in Parks
and Recreation Programs, excluding other post-employment benefit costs, increased by
$335 thousand (197 percent) from $170 thousand in fiscal year 2009 to $505 thousand in
fiscal year 2010. This increase was caused by a reclassification of employees from the
General Fund to Programs. A transfer of $344 thousand from the General Fund to
Programs was intended to offset the increase in staff costs. (2) Other post-employment
benefit costs increased by $267 thousand (39.3 percent). (3) Snow removal costs for the
Airport were $62 thousand in fiscal year 2010, compared to no costs in fiscal year 2009.
These costs related to the snow storms that occurred in December 2009 and February
2010. These costs were partially offset by FEMA reimbursements totaling $32 thousand.
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, unreserved 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 $49.6 million, compared to $36.5 million for the prior
year. Approximately 18.2 percent of this total ($9.1 million) constitutes unreserved undesignated
fund balance, which is available for spending based on each fund’s specific purpose.
Thereserved fund balance, at 46.2 percent of total fund balance ($22.9 million), is not available
for new spending because it has already been reserved for prior period commitments and legal
restrictions. Reserved fund balances have been committed; (1) to restrict unspent 2009 Bond
proceeds until they are used to fund general capital projects, per the terms of the 2009 Bond
($9.9 million); (2) to cover loan receivable balances ($3.6 million) and contingencies ($7.1
million); (3) to restrict the unspent portion of Federal confiscated funds received ($669 thousand);
and (4) to earmark other monies for a variety of other specific purposes ($1.7 million).
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The remaining 35.6 percent of fund balance ($17.6 million) constitutes unreserved designated
fund balances. These amounts have been designated for subsequent year’s operating and
capital budgets ($6.2 million and $4.6 million, respectively) and are recorded in the County’s
budget documents as beginning resources to fund expenditures. In addition, amounts have
been designated to liquidate contracts, purchase orders, and capital commitments of the prior
period ($6.8 million).
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 has no unreserved undesignated fund balance. If this
had been a positive amount, it would have been available for spending. However, the total fund
balance, including reserved and designated balances, is $14.0 million. As a measure of the
General Fund’s liquidity, it may be useful to compare both unreserved undesignated fund balance
andtotal fund balance to total General Fund expenditures and other financing uses of $109.1
million, as calculated in the table shown below. Although the unreserved undesignated fund
balance percentage is zero, total fund balance of $14.0 million represents 12.9 percent of the
total General Fund expenditures and other financing uses. Of this total fund balance, $7.1 million
has been set aside to cover unforeseen contingencies.
During the current fiscal year, the total fund balance of the government’s General Fund
decreased by $1.0 million, compared to an increase of $2.1 million during the prior fiscal year.
This $3.1 million net change was due entirely to increased spending of $7.3 million, as shown in
the following table:
General Fund Increase
Expenditures and Transfers Out 2010 2009 (Decrease)
Expenditures
Education $ 4 9,204,590 $ 48,856,359 $ 348,231
Public Safety 20,331,793 20,083,251 248,542
General Government 9 ,715,915 9,871,927 (156,012)
Debt Service 8,018,224 7,843,837 174,387
Other 13,594,820 12,553,738 1,041,082
Subtotal Expenditures 1 00,865,342 99,209,112 1,656,230
Other Financing Uses - Transfers Out to:
Roads Board Operating 4 ,663,551 30,616 4,632,935
Department of Aging 1,564,634 1,622,471 (57,837)
General Capital Projects Fund 664,733 21,483 643,250
Parks & Recreation Enterprise - Programs 424,468 43,000 381,468
Department of Housing and Community Services 368,639 416,742 (48,103)
Other Funds 533,631 439,300 94,331
Subtotal Transfers Out 8,219,656 2,573,612 5,646,044
Total Expenditures and Transfers Out $ 109,084,998 $ 101,782,724 $ 7,302,274
The largest single increase is the transfer of $4.6 million from the General Fund to the Roads
Board Operating Fund. Until fiscal year 2010, the 550-mile-long County Roads system was
maintained exclusively by Highway User Tax revenue, a tax imposed at the State level but shared
with the counties. About one month after the County had officially adopted its fiscal year 2010
budget and irrevocably set its property and income tax rates, the State officially indicated that it
would no longer share this tax with the counties in any meaningful way. To compensate for this
loss of funding, the General Fund transferred a total of $4.6 million to the Roads Board. This
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transfer, along with residual Highway User Tax from the prior year, was used to provide services
during the year. At the end of fiscal year 2010, the Roads Board held a positive unreserved fund
balance of $3.5 million, which will be used to cover Roads operations for fiscal year 2011,
although at well below the previous year’s $5.6 million level of service.
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, 2010, the General Capital Projects Fund has a total fund balance of $17.7 million,
when compared to $4.8 million at the end of the prior fiscal year. This $12.9 million change in
total fund balance is composed of $9.9 million in 2009 Bond proceeds, which were received but
legally restricted to cover certain on-going projects; $3.0 million designated to fund the FY11
capital budget; a $2.8 million decrease in encumbrances to cover work under contract but not yet
completed; and a $2.9 million increase in unreserved undesignated fund balance.
Theunreserved undesignated fund balance changed from a deficit of $2.9 million in fiscal year
2009 to a slightly positive balance of $1,490 in fiscal year 2010. This improvement resulted
directly from receipt of the 2009 Bond proceeds, since issuance of those Bonds had been
delayed by more than a year, into fiscal year 2010. Much of those proceeds covered eligible
project costs that were paid during fiscal year 2009, and thereby replenished fund balance in
fiscal year 2010. Another $8.3 million of unreserved undesignated fund balance was transferred
for use in the General Fund.
Most capital projects not covered by existing resources will be covered by issuing Bonds in fiscal
year 2011. The largest such project by far is construction of a new Middle School located in
Sudlersville, for which the County has advanced $2.7 million so far. The total project costs of
$27.4 million will be covered by $12.0 million in State funding plus $15.4 million in funding from
upcoming County Bonds.
The Roads Capital Projects Fund accounts for roads capital project activities funded by State
Shared Highway User Tax revenues, roads-related capital grants, and roads benefit
assessments.
As of June 30, 2010, the Roads Capital Projects Fund has a total fund balance of $4.0 million,
compared to $3.5 million at the end of the prior fiscal year. Of the total increase of $514
thousand, $460 thousand relates to advance funding of two specific capital projects which
exceeded their expenditures for the year; those amounts will be utilized in subsequent years to
complete these projects. Of this total fund balance of $4.0 million, none is designated for
subsequent year’s capital projects, compared to $1.5 million designated for this purpose the
previous year, while $1.2 million is unreserved, undesignated fund balance, compared to $701
thousand available for spending in the prior year. Due to reductions in funding from the State, as
noted below and elsewhere in this MD&A, mostly grant-funded capital projects were completed
during the year.
The School Impact Fees Capital Projects Fund accounts for financial resources generated by
new residential construction. Those funds are then used for the construction of public school
facilities or payment of debt relating to such construction.
The total fund balance as of June 30, 2010 was $1.1 million, which was a decrease of $552
thousand from the prior year fund balance of $1.6 million. This decrease resulted from a transfer
out of $1.4 million to the General Fund, to cover debt service payments related to school
construction, while only $856 thousand was received during the year. This revenue consists
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mainly of impact fee charges, which were higher by $82 thousand than received the year before,
but less than the amount needed to cover annual school-related debt service payments.
The Roads Board Fund accounts for State Shared Highway User Tax revenue, reimbursements from
other County departments for specific tasks completed on their behalf, plus transfers received from the
County. These funds are used to maintain County road infrastructure.
The total fund balance as of June 30, 2010 was $4.2 million, which was an increase of $881 thousand
from the prior year fund balance of $3.3 million. This increase in fund balance resulted directly from a
$1.3 million decrease in operating expenditures for the year, including a complete cessation of capital
outlay. As noted previously in this MD&A, the State virtually ceased sharing a State levied Highway User
Tax revenue with its counties, starting early in fiscal year 2010. Therefore, the County sought to
complete only crucial tasks during the year, while curtailing routine maintenance. Although the County
transferred $4.6 million to the Roads Board Fund from the General Fund, this transfer did not equal
Highway User Tax received in previous years, which averaged $5.7 million per year for the prior three
fiscal years.
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.
Totalunrestricted net assets of the Sanitary District Enterprise Funds at the end of fiscal year
2010 amounted to $13.6 million, which is $558 thousand less than the prior year. This resulted
entirely from the use of Restricted Fund assets to repay a large portion of debt service due for the
new BNR/ENR sewer plant debt, which is an approved use for these restricted monies.
Total net assets amounted to $75.6 million at the end of fiscal year 2010, which decreased by
$1.3 million when compared to the prior year. This decrease is also due to the same transfer of
monies, in excess of receipts, from the Restricted and Debt Service Funds to operating Funds to
pay debt service. During fiscal year 2010, $787 thousand and $350 thousand were transferred in
excess of receipts from the Restricted and Debt Service Funds, respectively.
Theunrestricted net assets of the Bay Bridge Airport Enterprise Fund at year end amounted to
negative $80 thousand compared to a positive $74 thousand at the end of the prior fiscal year,
reflecting a net change of $154 thousand. This change was mostly due to an operating loss that
was $117 thousand more than the prior fiscal year. Of this amount, $62 thousand was for snow
removal due to last year’s record snow falls and $40 thousand for increased repair costs.
Despite an operating deficit of $376 thousand, total net assets still increased by $1.2 million. This
increase was a direct result of increased federal and state capital contributions to cover several
on-going capital projects. For fiscal year 2010, the Airport’s total net assets increased from $12.4
million to $13.6 million.
A discussion of Enterprise Fund capital assets and long-term debt can be found in those sections
presented later in this MD&A.
General Fund Budgetary Comparisons
The County adopts an operating budget for the General Fund as of July 1 each year and amends
that budget throughout the year in response to actual events. Three Schedules detail these
events: summary, revenues and expenditures. These schedules can be found as part of
Required Supplemental Information, which is located after the Notes on pages 117 through 121.
These Schedules report original and final budgets, as well as the variance between actual events
and final budgets.
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Original to Final Budget Comparisons. The final expenditure budget for the General Fund,
including transfers out, totaled $112.7 million. Amendments increased spending authority by $2.7
million during fiscal year 2010, when compared to the original budget of $110.0 million.
Major components of these expenditure budget increases are as follows:
(cid:2) Budgeted Miscellaneous Expenditures on behalf of Insurance and Benefit costs increased
by $513 thousand during the year, to $960 thousand. As noted previously in this MD&A,
this increase in budget authority arose out of the following two events:
o The County participates in a health care consortium that purchases insurance on
behalf of its member entities, with the provision that claims in excess of premiums are
covered by the collective members of the consortium. To mitigate this risk, the County
charges sufficient premiums to cover this possibility and sets aside a contingency liability
in case costs exceed expectations. Each year, this liability account is adjusted based on
actual costs.
o The County also allocates workmen’s compensation insurance costs through the year
based on insurance rates attributable to each class of workers. At year end, these costs
are similarly adjusted to actual costs.
o During fiscal year 2010, health care and workmen’s compensation claims were higher
than originally estimated and the budget was increased by $513 thousand to cover actual
costs. It is not unusual for these costs to fluctuate from year to year.
Budgeted Transfers Out from the General Fund to the Roads Board Operating Fund
increased by $2.2 million during the year, to $4.7 million. This increase in funding relates
entirely to a change in funding from the State of Maryland to the County. As discussed
previously in this MD&A, the State substantially reduced the County’s share of Highway
User Tax. In response, the County transferred $4.6 million from the General Fund to the
Roads Board. This transfer, along with residual Highway User Tax from the prior year,
was used to provide services during the fiscal year 2010 and into fiscal year 2011.
Budget to Actual Comparisons. Actual revenues for the General Fund, including other financing
sources and before appropriated fund balance, were less than final budgetary estimates by $706
thousand. Actual expenditures, and other financing uses, were less than final budgetary
appropriations by $3.6 million. The net effect of these two opposing events was a positive
variance of actual to final budget of $2.9 million.
The most noteworthy differences between final budgeted amounts and actual amounts are
summarized as follows:
Revenues:
(cid:2) Recordation tax revenue was $440 thousand less than expected (15.0 percent). This is
because the original budget was based on fiscal year 2009 actual tax received, yet the
method by which this tax was allocated among County Funds changed between the two
years. In fiscal year 2009, $2.93 million in recordation tax was actually received and this
amount was re-budgeted virtually intact for fiscal year 2010. However, the recordation tax
rate of $4.95, per $500 recorded value, consists of a number of distinct rates, of which
$0.50 is to be used for the new courthouse. In fiscal year 2009, the courthouse tax rate of
$0.50 was collected in the General Fund, along with $3.30 for general revenue, for a total
tax rate of $3.80 collected in the General Fund. However, in fiscal year 2010, $2.5 million
was received in the General Fund, while the courthouse amount of $377 thousand was
collected in the General Capital Projects Fund instead. Therefore, 13.2 percent of the tax
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rate was diverted from the General Fund to the Capital Projects Fund during fiscal year
2010, but the budgeted recordation tax revenue was not amended to reflect this change.
(cid:2) Investment income was $387 thousand less than expected (86.0 percent). As discussed
earlier in the MD&A, this resulted from fluctuations in cash on hand and severe interest
rate reductions. Cash on hand fluctuated from $45.6 million at the beginning of fiscal
year 2009, earning 2.1 percent; to $31.5 million cash on hand a year later, earning 0.47
percent; to $43.7 million cash on hand at the end of fiscal year 2010, earning only 0.21
percent. The interest rate reductions, in particular, were not anticipated.
Expenditures:
(cid:2) Final Budgeted Salaries and Benefits were $27.7 million for the year, while actual costs
were $27.0 million. They were underspent at year-end by $767 thousand million (2.8
percent). Of this amount, the sheriff’s office was responsible for $207 thousand of the
unspent portion, the detention center for $157 thousand, and land use and zoning for
$102 thousand. This was due to routine turnover and vacant positions.
(cid:2) Final Budgeted Other Operating Charges were $83.3 million for the year, while actual
costs were $80.8 million. These costs were lower than budget at year end by $2.5 million
(3.2 percent). Operating Charges include contracted services, supplies, debt service,
transfers out, and other charges.
o Contracted Services were underutilized by $484 thousand, largely due to savings
by the detention center ($242 thousand), with the largest savings for medical
charges ($202 thousand).
o Supplies were underspent by $304 thousand, with savings spread evenly among
all departments. The largest line-item savings were for equipment operation
($145 thousand) and printing and publishing ($82 thousand).
o Other Charges were underspent by $1.3 million. About half of this amount ($669
thousand) relates almost entirely to the Sheriff’s Office drug-enforcement
confiscated funds, the remainder of which will be re-budgeted each year until
they are spent. The other large amount relates to the Health Department and
represents the unspent portion of their allocation ($254 thousand). Per
agreement, this amount will be re-allocated to a health-related project in the
following fiscal year.
o Transfers Out were underutilized by $394 thousand, primarily due to savings by
the Department of Aging ($316 thousand) that allowed that Department to forgo
this portion of their appropriation.
(cid:2) Final Budgeted Capital Outlay was $1.7 million for the year, while actual costs were $1.3
million. Purchases of capital assets were less than anticipated by $351 thousand (20.1
percent). Of this amount, a large portion ($233 thousand) resulted from uncertainty about
whether the Department of Emergency Services would be awarded particular capital
grants, which slowed the process to purchase equipment once the grants were received.
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, 2010 amounts to $243.5 million (net of
accumulated depreciation). This investment in capital assets includes land and land
improvements, intangible rights, construction in progress, buildings, improvements other than
buildings, infrastructure, autos, machinery, and equipment.
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Capital asset activities, net of depreciation, are summarized as follows:
Governmental Activities Business Type Activities Total
Capital Assets, Net of Depreciation 2010 2009 2010 2009 2010 2009
Land and Land Improvements $ 7 9,718,879 $ 7 8,853,728 $ 14,209,466 $ 14,209,466 $ 9 3,928,345 $ 9 3,063,194
Intangible Rights - Easements 1 3,390 - - 1 3,390 -
Construction in Progress 1 1,616,229 1 4,157,439 5,199,865 1,475,247 1 6,816,094 1 5,632,686
Buildings 2 6,865,669 2 0,418,727 12,419,423 13,089,146 39,285,092 3 3,507,873
Improvements other than Buildings 4 ,570,359 4 ,135,066 4,137,631 4,389,205 8 ,707,990 8 ,524,271
Infrastructure 8 ,962,561 9 ,197,613 48,632,364 50,059,533 57,594,925 5 9,257,146
Auto, Machinery, and Equipment 1 1,377,130 1 0,846,026 15,762,023 16,677,818 27,139,153 2 7,523,844
Total $ 1 43,124,217 $ 1 37,608,599 $ 100,360,772 $ 99,900,415 $ 2 43,484,989 $ 2 37,509,014
Queen Anne’s County’s total investment in capital assets for the current fiscal year, net of
depreciation, increased by 2.5 percent, or $6.0 million. Of this amount, governmental investment
in capital assets increased by $5.5 million, most of which ($4.3 million) related to construction in
progress, while business-type investment in capital assets increased by $460 thousand, due
entirely to construction in progress ($3.7 million), as depreciation expense ($3.7 million)
decreased all other capital categories.
Changes in the County’s capital assets, with depreciation shown separately, are summarized as
follows. Note that completed projects that were reclassified from construction in progress (CIP) to
other asset accounts during the year net to zero and are reported in the same column.
Governmental Activities
Construction In
Changes in Capital Assets 2009 Additions Progress & Transfers Retirements 2010
Land and Land Improvements $ 7 8,853,728 $ 866,769 $ - $ (1,618) $ 79,718,879
Intangible Rights - Easements - - 13,390 - 13,390
Construction in Progress 1 4,157,439 4,777,972 ( 6,027,382) (1,291,800) 11,616,229
Buildings 2 7,963,214 2,574,512 4,529,875 (1,601) 3 5,066,000
Improvements other than Buildings 4 ,927,677 6 ,070 584,297 ( 586) 5,517,458
Infrastructure 1 5,478,289 1 2,986 - - 1 5,491,275
Auto, Machinery, and Equipment 2 7,012,567 2,058,517 899,820 (982,721) 28,988,183
Total Assets before depreciation 1 68,392,914 1 0,296,826 - (2,278,326) 176,411,414
Less Depreciation (30,784,315) (3,307,796) - 804,914 (33,287,197)
Total Assets after depreciation $ 1 37,608,599 $ 6 ,989,030 $ - $ (1,473,412) $ 143,124,217
Business-Type Activities
Changes in Capital Assets 2009 Additions Retirements 2010
Land and Land Improvements $ 1 4,209,466 $ - $ - $ 14,209,466
Construction in Progress 1 ,475,247 3,724,618 - 5,199,865
Buildings 1 8,186,494 3 2,315 - 18,218,809
Improvements other than Buildings 6 ,407,390 - - 6,407,390
Infrastructure 6 8,016,100 2 08,114 - 68,224,214
Auto, Machinery, and Equipment 2 3,055,190 2 21,933 - 23,277,123
Total Assets before depreciation 1 31,349,887 4 ,186,980 - 135,536,867
Less Depreciation (31,449,472) (3,726,623) - (35,176,095)
Total Assets after depreciation $ 9 9,900,415 $ 460,357 $ - $ 100,360,772
- 30 -

Noteworthy capital asset events during the current fiscal year for governmental activities included
the following:
(cid:2) Land and Land Improvements increased by $867 thousand almost exclusively due to this
year’s purchase of a single property. Because of its location adjacent to existing judicial
and governmental buildings in downtown Centreville, the County purchased one parcel of
improved land and intends to develop it into a new County Courthouse at some time in
the future ($815 thousand).
(cid:2) Construction in Progress (CIP)increased by $4.8 million due to purchases and
decreased by $6.0 million due to assets being reclassified from construction in progress
to specific types of assets, plus $1.3 million in assets were retired from service or
reclassified from capital to operating expenses.
o Additions to construction in progress, of $4.8 million, include current costs for projects
that were completed this year and reclassified to specific assets at year end, as noted
below, such as: (a) the finance system project, which financed many computer-related
equipment purchases ($351 thousand); (b) the county facilities program, which improved
building facilities ($269 thousand); and (c) the courthouse renovation project, which
improved the County’s historic courthouse building ($164 thousand).
o Additions to construction in progress, of $4.8 million, also include current costs for
projects still under construction at year end, such as: (a) the Nesbit Road Emergency
Room infrastructure project, which constructed road and sewer improvements to an
existing county road so that the public could reach the new Emergency Room Medical
facility associated with the University of Maryland medical system and located in
Grasonville ($2.3 million); (b) development of the White Marsh Park facility ($622
thousand), which will become part of the County’s park system when complete; and (c)
the Sudlersville infrastructure project that constructed road and sewer improvements to
County roads so that the public could access the new Foxxtown public housing facility
($204 thousand).
o Decreases ($6.0 million), due to reclassifications of projects recorded previously as
construction in progress, include the following.
(cid:2) Items reclassified to buildings and improvements include: (a) the Detention
Center Expansion project, which completed a major expansion of the existing facility
($2.4 million); (b) the Matapeake Park Clubhouse project, which included design and
construction of the clubhouse ($830 thousand); (c) the Centreville Recycling Facility
project, which improved the Centreville MCF facility ($719 thousand); (d) the County
Facilities project, which improved a number of county buildings ($269 thousand); (e) the
Courthouse Renovation project, which enhanced and improved the County’s historic
courthouse building ($164 thousand).
(cid:2) Items reclassified to Improvements to Site Other than Buildings include: (a)
upgrade of the Wells Cove Landing ($202 thousand); (b) improvements to the Ewing
Pond Park ($165 thousand); and (c) continued development of the Conquest Beach
property ($102 thousand).
(cid:2) Items reclassified to auto, machinery and equipment include: (a) the finance
system project financed many computer-related equipment purchases ($351 thousand);
(b) the Emergency Services Department installed records management software and
equipment ($188 thousand) as well as software upgrades necessary to operate the
County’s radio towers and emergency communication system in conjunction with other
emergency entities ($160 thousand); and (c) the IT infrastructure project purchased
- 31 -

telephone and computer equipment ($47 thousand and $103 thousand, respectively) and
installed them throughout the county’s facilities.
o Retirements of $1.3 million include the following three projects, which were
anticipated to be capital in nature but were found to be at least partially related to
operating repairs instead. They are as follows, broken down into their capital and their
operating components, respectively: (a) the county facilities program improved building
facilities ($269 thousand) but also performed operating repairs for those facilities ($309
thousand); (b) the finance system project financed many computer-related capital
equipment purchases ($351 thousand) but also maintained those computer systems
($352 thousand); and (c) the courthouse renovation project improved the County’s historic
courthouse building ($164 thousand) but also performed routine maintenance of that
same facility ($433 thousand). All of the operating components noted above were
removed from construction in progress as retirements.
(cid:2) Buildings and Improvementsincreased by $2.6 million due to current year purchases and
donations and by another $4.5 million due to assets being reclassified from construction
in progress to buildings and improvements.
o Additions of $2.6 million include the following assets: (a) a new Senior Center,
located in Sudlersville adjacent to the new Foxxtown public housing facility, was
constructed with grant and county funds ($2.1 million cost) and then donated to the
Department of Aging to own and manage; and (b) the existing building located on the
parcel which the County intends to develop into a new County Courthouse ($500
thousand).
o Reclassification of $4.5 million from construction in progress to specific asset
accounts reclassified the following amounts from construction in progress to buildings
and improvements: (a) the Detention Center Expansion project, which represents a major
expansion of the existing detention facility ($2.4 million); (b) the Matapeake Park
Clubhouse project, which includes design and construction of the clubhouse ($830
thousand); (c) the Centreville Recycling Facility project, which improves the Centreville
MCF facility ($719 thousand); (d) the County Facilities project, which improves a number
of county buildings in a variety of ways ($269 thousand); (e) the Courthouse Renovation
project, which brought aspects of the County’s historic courthouse building up to current
standards ($164 thousand).
(cid:2) Improvements to Site Other than Buildingsincreased by $584 thousand due to assets
beingreclassified from construction in progress to site improvements, as follows: (a)
upgrade of the Wells Cove Landing ($202 thousand); (b) improvements to the Ewing
Pond Park ($165 thousand); and (c) continued development of the Conquest Beach
property ($102 thousand)
(cid:2) Intangible Rights - Easements and Infrastructure remained virtually the same.
(cid:2) Auto, Machinery and Equipment increased by $2.1 million due to current year purchases
and donations, as well as another $900 thousand due to assets being reclassified from
construction in progress to these three types of assets, plus $983 thousand in assets
retired from service.
o Additions of $2.1 million included the following purchases and donations: (a)
Emergency Services received a grant to purchase the Verizon Emergency Phone System
to improve communications ($805 thousand); (b) Department of Aging received FY09
and FY10 State grants ($179 thousand and $429 thousand, respectively) to purchase
several small-scale transit buses; (c) Emergency Services constructed a 800 MHz tower
- 32 -

and upgraded communication software to accommodate the tower ($289 thousand); and
(d) Emergency Services purchased a Horton Ambulance ($164 thousand).
o Reclassifications of $900 thousand included: (a) the finance system project, which
financed many computer-related equipment purchases ($351 thousand); (b) the
Emergency Services Department installation of records management software and
equipment ($188 thousand) and software upgrades necessary to operate the County’s
radio towers and emergency communication system ($160 thousand); and (c) the IT
infrastructure project purchases and installation of telephone and computer equipment
($47 thousand and $103 thousand, respectively).
o Retired items of $983 thousand included the following, the majority of which were
fully depreciated: (a) obsolete computer software and hardware ($581 thousand); (b) four
Massey Ferguson Tractors ($92 thousand); and (c) retirement of an 800 MHZ tower on
which multiple emergency communication devices had been attached ($85 thousand).
Noteworthy capital asset events during the current fiscal year for business-type activities included
the following:
(cid:2) Construction in Progress (CIP)increased by $3.7 million. Additions include the following
larger projects: (a) the Airport is constructing a new taxiway, supported primarily by
federal grants ($1.5 million); (b) Kent Narrows Marina is rehabilitating the marina facility
($945 thousand); and (c) the Sanitary District is improving the Stevensville to Chester
Water Main ($397 thousand).
(cid:2) Infrastructureincreased by $208 thousand, entirely due to developer contributions to the
Sanitary District when such infrastructure items, constructed by the developer, become
incorporated into the County’s water and sewer system.
(cid:2) Auto, Machinery and Equipment increased by $222 thousand due to current year
purchases. By far the largest single purchase is a Dump Truck, purchased by the
Sanitary District for its routine operations ($97 thousand).
Additional information on the County’s capital assets can be found in Note 6 of this report.
Long-term debt: At the end of the current fiscal year, Queen Anne’s County Government had
total bonded debt, loans, capital leases, other post-employment benefit obligations, and
compensated absence obligations of $124.2 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 $124.2 million in debt, $23.5 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 $6.0 million, which are restricted to payment of the Sanitary District’s subsequent year’s debt.
See Note 10 on pages 94 to 96 for restricted assets and subsequent year debt service
obligations.
- 33 -

Debt activities are summarized as follows:
Bonded Debt, Loans,
Other Post-Employment Benefit Obligation, Governmental Activities Business Type Activities Total
and Compensated Absences 2010 2009 2010 2009 2010 2009
Bonds, Notes, Premiums and
Deferred Debt Costs $ 89,725,398 $ 65,480,470 $ 21,611,733 $ 23,083,523 $ 111,337,131 $ 88,563,993
Other Post-Employment Benefit Obligation 8,548,639 3,688,090 1,562,119 615,955 10,110,758 4,304,045
Compensated Absences 2,434,947 2,243,389 296,788 264,322 2,731,735 2,507,711
Total Long-term Debt $ 100,708,984 $ 71,411,949 $ 23,470,640 $ 23,963,800 $ 124,179,624 $ 95,375,749
During the current fiscal year, the County’s total net debt increased by $28.8 million (30.2
percent). Of this amount, governmental debt increased by $29.3 million (41.0 percent), while
business-type debt decreased by $493 thousand (2.1 percent). During the fiscal year, the County
issued 2009 Bonds totaling $29.9 million and also entered into a promissory note agreement for
$800 thousand. In addition, total Other Post-Employment Benefit Obligations increased by $5.8
million. Offsetting these increases were changes in accruals, plus the County’s repayment of
existing debt in accordance with established repayment schedules for bonds, notes, and capital
lease agreements.
Additional information on the County’s long-term debt can be found in Note 9, pages 84 to 93, of
this report.
The public local laws of Queen Anne’s County limit the amount of general obligation debt to no
more than $8.0 million, unless authorized under specific legislation. Currently, approximately
$6.2 million of this authority is available. All other debt has been authorized under specific
legislation. Additional information on the computation of the legal debt margin can be found in
Table 12 of the Statistical Section of this report.
During fiscal year 2010, the rating agencies recalibrated their ratings and Queen Anne’s County
Government received an “AA+” bond rating from Fitch Rating Service and an “Aa2” bond rating
from Moody’s Investors Service.
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 2011 fiscal year:
(cid:2)(cid:3) Property assessments are projected to grow by 0.4 percent over the previous year,
based on State Assessment Office values used to compute the Constant Yield rate.
(cid:2)(cid:3) The County Commissioners adopted a property tax rate of $.7671 per $100 of assessed
valuation of real property, the Constant Yield Rate, for fiscal year 2011. This is a slight
decrease from the rate of $0.770 used for the 2010 fiscal year.
(cid:2)(cid:3) Income tax revenue is projected to increase to $32.98 million in fiscal year 2011, which is
an 11% increase over actual receipts for fiscal year 2010. The County Commissioners
based this increase, in part, on the fact that the County currently has the lowest
unemployment rate on the Eastern Shore, as well as other positive economic indicators
that came to their attention during budget deliberations. This budgeted amount is less
than the average income tax received for the last five fiscal years of $33.40 million.
(cid:2) In preparation for the fiscal 2011 budget, a Citizens Budget Committee was formed. The
Committee was asked to advise the County Commissioners in developing the County’s
annual operating budget; to examine the feasibility of out-sourcing selected services by
- 34 -

the County; and to advise the Commissioners in ways to make the financial processes of
the government more transparent to the citizens. Although many of the recommendations
of the Citizens Budget Committee to decrease expenditures were implemented in the
fiscal year 2011 budget, the Commissioners voted against increasing the property and
income tax rates. Some of the implemented recommendations were:
o Defer non-essential capital projects;
o Furlough employees for five to ten days, depending on level of service;
o Change overtime calculation; and
o Reduce spending in a variety of areas.
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 Chief Accounting Officer, Queen Anne’s County Finance Office, 107
N. Liberty Street, Centreville, Maryland 21617. This report can also be found on the County’s
website,http://www.qac.org (see Departments, Finance, Financial Reports and Forms, Link to
2009 Comprehensive Annual Financial Report (CAFR)).
- 35 -

- 36 -

Basic Financial Statements
- 37 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET ASSETS
JUNE 30, 2010
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
Equity in Pooled Cash and Investments $ 43,728,010 $ 8,879,329 $ 52,607,339
Cash and Cash Equivalents - - -
Taxes Receivable (Net) 365,553 - 365,553
Accounts and Loans Receivable (Net) 4,560,813 605,168 5,165,981
Special Assessments (Net) 1,243,298 - 1,243,298
Internal Balances 595,738 (595,738) -
Due from Primary Government - - -
Due from Component Units 344,546 - 344,546
Due from Other Governments 11,344,294 986,911 12,331,205
Bond Interest Reimbursement Receivable - Build America Bond 113,640 2,085 115,725
Inventories 594,266 378,923 973,189
Prepaid Items 3,500 84,626 88,126
Restricted Assets:
Equity in Pooled Cash and Investments - 11,362,925 11,362,925
Investments - - -
Accounts Receivable (Net) - 57,029 57,029
Special Assessments Receivable (Net) - 3,424,665 3,424,665
Capital Assets:
Nondepreciable Assets 91,348,498 19,409,331 110,757,829
Depreciable Assets, Net 51,775,719 80,951,441 132,727,160
Total Assets 206,017,875 125,546,695 331,564,570
LIABILITIES
Accounts Payable and Other Current Liabilities 3,015,464 668,392 3,683,856
Accrued Interest Payable 1,049,686 135,814 1,185,500
Due to Other Governmental Agencies 600,503 - 600,503
Unearned Revenue 2,446,503 731,836 3,178,339
Escrow Deposits - 45,558 45,558
Liabilities Payable from Restricted Assets:
Unearned Revenue - 3,281,273 3,281,273
Noncurrent Liabilities:
Due within One Year 7,649,500 2,237,352 9,886,852
Due in More than One Year 93,059,484 21,233,288 114,292,772
Total Liabilities 107,821,140 28,333,513 136,154,653
NET ASSETS
Invested in Capital Assets, Net of Related Debt 121,702,025 79,032,373 200,734,398
Restricted for:
Governmental Activities 22,290,307 - 22,290,307
Debt Service - 3,672,351 3,672,351
Capital/Debt Service - 6,699,756 6,699,756
Business-type Operations - 7,055,402 7,055,402
Capital Projects - 753,300 753,300
Other Purposes - - -
Unrestricted Net Assets (Deficit) (45,795,597) - (45,795,597)
Total Net Assets $ 98,196,735 $ 97,213,182 $ 195,409,917
The accompanying notes to the basic financial statements are an integral part of this statement.
- 38 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET ASSETS
JUNE 30, 2010
(CONTINUED)
COMPONENT UNITS
BOARD OF FREE HOUSING
EDUCATION LIBRARY AUTHORITY
$ - $ - $ 2,035,891
13,051,221 665,298 334,073
- - -
516,947 31,255 7,873
- - -
- - -
136,454 - -
- - -
1,480,216 - 11,818
- - -
79,431 - -
52,360 3,622 65,315
- 644,761 -
- - 94,045
- - -
- - -
11,013,465 29,850 1,351,727
123,238,887 903,941 17,914,807
149,568,981 2,278,727 21,815,549
10,614,838 83,919 79,214
- - 21,552
- - 115,970
527,266 - 5,340
- - 94,045
- - -
278,007 - 99,495
10,265,855 573,566 2,828,833
21,685,966 657,485 3,244,449
134,170,145 933,791 16,629,272
- - -
- - -
- - -
- - -
10,198 - 1,811,963
216,340 10,500 -
(6,513,668) 676,951 129,865
$ 127,883,015 $ 1,621,242 $ 18,571,100
The accompanying notes to the basic financial statements are an integral part of this statement.
- 39 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2010
PRIMARY GOVERNMENT
OPERATING CAPITAL
CHARGES FOR GRANTS AND GRANTS AND TOTAL
EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS REVENUE
PRIMARY GOVERNMENT
Governmental Activities
General Government $ 14,089,387 $ 1,261,230 $ 546,176 $ 44,743 $ 1,852,149
Public Safety 25,361,341 1,263,212 1,891,120 303,566 3,457,898
Public Works 9,432,489 791,796 632,923 264,078 1,688,797
Health 1,663,321 - - - -
Social Services 5,554,667 67,423 2,666,917 2,688,245 5,422,585
Education 53,491,659 852,201 433,000 - 1,285,201
Parks & Recreation 3,618,427 177,568 123,336 631,504 932,408
Library 1,473,689 - - - -
Conservation of Natural Resources 5,281,372 101,019 9 3,002 4,191,024 4,385,045
Economic/Community Development 2,001,306 4,350 312,270 337,463 654,083
Interest and Fiscal Charges 3,510,678 - - - -
Total Governmental Activities 125,478,336 4,518,799 6,698,744 8,460,623 19,678,166
Business-type Activities
Water and Sewer 10,610,705 8,224,428 9 8,492 208,115 8,531,035
Parks & Recreation 2,789,901 1,633,203 4 1,838 289,895 1,964,936
Public Marinas 96,739 62,600 2 9,017 545,123 636,740
Airport 1,017,780 50,585 3 3,922 1,519,810 1,604,317
Total Business-type Activities 14,515,125 9,970,816 2 03,269 2,562,943 12,737,028
Total Primary Government $ 139,993,461 $ 14,489,615 $ 6,902,013 $ 11,023,566 $ 32,415,194
COMPONENT UNITS
Board of Education $ 103,332,842 $ 1,527,874 $ 19,948,202 $ - $ 21,476,076
Free Library 2,179,219 7,619 163,658 - 171,277
Housing Authority 7,189,914 1,231,465 1,339,036 509,291 3,079,792
Total Component Units $ 112,701,975 $ 2,766,958 $ 21,450,896 $ 509,291 $ 24,727,145
General Revenues
Local Property Tax
Local Income Tax
Other Local Taxes
Admission and Amusement Taxes
Recordation Taxes
Hotel Taxes
County Transfer Taxes
Grants and Contributions Not Restricted to Specific Programs
Investment Income
Gain on Sale of Capital Assets
Miscellaneous
Transfers In (Out)
Total General Revenues and Transfers
Change in Net Assets
Total Net Assets - Beginning of Year
Total Net Assets - End of Year
The accompanying notes to the basic financial statements are an integral part of this statement.
- 40 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2010
(CONTINUED)
NET (EXPENSE) REVENUE AND CHANGES IN NET ASSETS
PRIMARY GOVERNMENT COMPONENT UNITS
GOVERNMENTAL BUSINESS-TYPE BOARD OF FREE HOUSING
ACTIVITIES ACTIVITIES TOTAL EDUCATION LIBRARY AUTHORITY
$ (12,237,238) $ - $ (12,237,238) $ - $ - $ -
(21,903,443) - (21,903,443) - - -
(7,743,692) - (7,743,692) - - -
(1,663,321) - (1,663,321) - - -
(132,082) - (132,082) - - -
(52,206,458) - (52,206,458) - - -
(2,686,019) - (2,686,019) - - -
(1,473,689) - (1,473,689) - - -
(896,327) - (896,327) - - -
(1,347,223) - (1,347,223) - - -
(3,510,678) - (3,510,678) - - -
(105,800,170) - (105,800,170) - - -
- (2,079,670) (2,079,670) - - -
- (824,965) (824,965) - - -
- 540,001 540,001 - - -
- 586,537 586,537 - - -
- (1,778,097) (1,778,097) - - -
$ (105,800,170) $ (1,778,097) $ (107,578,267) $ - $ - $ -
- - - (81,856,766) - -
- - - - (2,007,942) -
- - - - - (4,110,122)
- - - (81,856,766) (2,007,942) (4,110,122)
59,267,240 - 59,267,240 - - -
25,715,247 - 25,715,247 - - -
208,736 - 208,736 - - -
3,734,340 - 3,734,340 - - -
397,141 - 397,141 - - -
1,147,179 - 1,147,179 - - -
- - - 76,295,883 1,554,598 409,042
144,553 436,045 580,598 22,675 11,515 2,729
26,731 - 26,731 - - -
786,719 962,540 1,749,259 328,022 80,709 -
(559,331) 559,331 - - - -
90,868,555 1,957,916 92,826,471 76,646,580 1,646,822 411,771
(14,931,615) 179,819 (14,751,796) (5,210,186) (361,120) (3,698,351)
113,128,350 97,033,363 210,161,713 133,093,201 1,982,362 22,269,451
$ 98,196,735 $ 97,213,182 $ 195,409,917 $ 127,883,015 $ 1,621,242 $ 18,571,100
The accompanying notes to the basic financial statements are an integral part of this statement.
- 41 -

QUEEN ANNE'S COUNTY, MARYLAND
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2010
SCHOOL
GENERAL GENERAL ROADS IMPACT FEES
FUND CAPITAL CAPITAL CAPITAL
ASSETS
Cash and Cash Equivalents $ 11,601,029 $ 16,985,943 $ 4,109,714 $ 1,068,666
Prepaid Items 3,500 - - -
Receivables
Taxes Receivable (Net) 197,186 168,367 - -
Accounts and Loans Receivable (Net) 318,701 2,318 18,609 359,468
Special Assessments (Net) - - 515,726 -
Due from Other Governments 10,106,755 441,924 - -
Due from Other Funds 1,019,990 70,071 - -
Due from Component Units - 344,546 - -
Inventory 4,000 - - -
Total Assets $ 23,251,161 $ 18,013,169 $ 4,644,049 $ 1,428,134
LIABILITIES AND FUND BALANCES
Liabilities
Accrued Liabilities $ 2,050,205 $ 265,536 $ 18,604 $ -
Due to Other Funds - - - -
Due to Other Governmental Agencies - - - -
Deferred Revenue 7,169,846 69,826 575,693 359,468
Total Liabilities 9,220,051 335,362 594,297 359,468
Fund Balances
Reserved
Loans Receivable - - - -
Prepaid Items 3,500 - - -
Inventory 4,000 - - -
Donor-Specified Purposes 2,725 38,888 - -
Contingencies 7,055,868 - - -
Other Reserved Purposes - Other 668,599 9,871,828 - -
Other Reserved Purposes - Capital Projects - 76,741 820,186 -
Total Reserved 7,734,692 9,987,457 820,186 -
Unreserved
Designated for Subsequent Years' Expenditures 6,245,080 - - -
Designated for Encumbrances 51,338 4,688,860 2,010,063 -
Designated for Capital Projects - 3,000,000 - 1,068,666
Undesignated, reported in
Capital Project Funds - 1,490 1,219,503 -
Special Revenue Funds - - - -
Total Unreserved 6,296,418 7,690,350 3,229,566 1,068,666
Total Fund Balances 14,031,110 17,677,807 4,049,752 1,068,666
Total Liabilities and Fund Balances $ 23,251,161 $ 18,013,169 $ 4,644,049 $ 1,428,134
The accompanying notes to the basic financial statements are an integral part of this statement.
- 42 -

QUEEN ANNE'S COUNTY, MARYLAND
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2010
(CONTINUED)
TOTAL
ROADS NON-MAJOR GOVERNMENTAL
BOARD GOVERNMENTAL FUNDS
$ 4,059,759 $ 5,902,899 $ 43,728,010
- - 3,500
- - 365,553
76,957 3,784,760 4,560,813
- 727,572 1,243,298
287,944 507,671 11,344,294
- - 1,090,061
- - 344,546
590,266 - 594,266
$ 5,014,926 $ 10,922,902 $ 63,274,341
$ 210,169 $ 470,950 $ 3,015,464
- 494,323 494,323
- 600,503 600,503
610,196 812,676 9,597,705
820,365 2,378,452 13,707,995
- 3,575,667 3,575,667
- - 3,500
590,266 - 594,266
- 1,050 42,663
- - 7,055,868
47,925 130,830 10,719,182
- - 896,927
638,191 3,707,547 22,888,073
- - 6,245,080
13,732 - 6,763,993
- 550,334 4,619,000
- - 1,220,993
3,542,638 4,286,569 7,829,207
3,556,370 4,836,903 26,678,273
4,194,561 8,544,450 49,566,346
$ 5,014,926 $ 10,922,902 $ 63,274,341
The accompanying notes to the basic financial statements are an integral part of this statement.
- 43 -

- 44 -

QUEEN ANNE'S COUNTY, MARYLAND
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2010
Total Fund Balance - Governmental Funds $ 4 9,566,346
Amounts reported for Governmental activities in the Statement of Net Assets
are different because:
Receivables not included in the governmental funds because they relate to debt.
A portion of the County’s 2009 Bond offering was issued using
Build America Bonds. As an incentive to use these bonds, the Federal
government offered an interest reimbursement grant, which offsets the
County's debt service for interest expense. Therefore, at year end, a
receivable is booked for the interest reimbursement due, but not yet received.
ADD Bond Interest Reimbursement Receivable - Build America Bond 113,640
Capital assets used in governmental fund activities are not financial resources
and therefore are not reported in the funds.
ADD Nondepreciable capital assets
Land and Land Improvements $ 3 9,676,917
Infrastructure 4 0,055,352
Construction in Progress 1 1,616,229 91,348,498
ADD Depreciable capital assets
Buildings 3 5,066,000
Improvements other than Buildings 5 ,517,458
Machinery and Equipment 1 9,370,119
Automobiles and Trucks 9 ,618,064
Infrastructure 1 5,491,275
Less Accumulated depreciation (33,287,197) 51,775,719
Revenues that are deferred in the governmental funds because they do not
provide current financial resources are recognized as revenues in the
Statement of Activities.
ADD Property Taxes deferred in governmental funds 1 06,476
ADD Income Taxes deferred in governmental funds 5 ,116,295
ADD Loans receivable deferred in governmental funds 1 ,928,431 7,151,202
Long-term liabilities related to governmental fund activities are not due and
payable in the current period and therefore are not reported in the funds.
SUBTRACT Accrued Interest Payable ( 1,049,686)
SUBTRACT Long-Term Liabilities Due within One Year
Accrued Compensated Absences (1,420,167)
Bonds and Notes Payable (6,229,333) ( 7,649,500)
SUBTRACT Long-Term Liabilities Due in More than One Year
Other Post-Employment Benefit Obligation (8,548,639)
Accrued Compensated Absences (1,014,780)
Bonds and Notes Payable (83,496,065) ( 93,059,484)
Total Net Assets - Governmental Activities $ 98,196,735
The accompanying notes to the basic financial statements are an integral part of this statement.
- 45 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
SCHOOL
GENERAL GENERAL ROADS IMPACT FEES
FUND CAPITAL CAPITAL CAPITAL
REVENUES
Taxes
Local Property Tax $ 59,204,132 $ - $ - $ -
Local Income Tax 29,647,125 - - -
Admission and Amusement Taxes 156,552 - - -
Recordation Taxes 2,489,560 377,206 - -
Hotel Taxes 397,141 - - -
County Transfer Taxes - 1,147,179 - -
State Shared Taxes - - - -
Licenses and Permits 863,782 - - -
Intergovernmental 2,644,990 1,903,992 199,145 -
Bond Interest Reimbursement - Build America Bond 193,567 - - -
Charges for Current Services 1,779,401 - 54,298 852,201
Fines and Forfeitures 207,400 - - -
Investment Income 62,808 16,240 39,310 3,497
Donations 10,901 23,609 - -
Miscellaneous 530,574 34,486 100 -
Total Revenues 98,187,933 3,502,712 292,853 855,698
EXPENDITURES
Current
General Government 9,715,915 816,803 - -
Public Safety 20,331,793 41,551 - -
Public Works 3,307,461 37,586 - -
Health 1,637,101 - - -
Social Services 263,117 8,383 - -
Education 49,204,590 4,341,007 - -
Parks and Recreation 2,647,253 408,082 - -
Library 1,424,078 - - -
Conservation of Natural Resources 544,016 12,000 - -
Economic/Community Development 1,075,647 106,642 - -
Miscellaneous 1,373,090 - - -
Capital Outlay 1,323,057 6,303,944 214,286 -
Debt Service
Principal 4,903,719 - - -
Debt Issuance Costs - 145,884 - -
Interest and Fiscal Charges 3,114,505 - - -
Total Expenditures 100,865,342 12,221,882 214,286 -
Excess of Revenues Over (Under) Expenditures (2,677,409) ( 8,719,170) 78,567 855,698
OTHER FINANCING SOURCES (USES)
Issuance of Debt - 29,299,154 - -
Bond Premiums - 157,800 - -
Proceeds of Capital Asset Disposals 9,866 6,855 - -
Insurance Proceeds 6,665 - - -
Transfers In 9,886,201 684,510 444,963 -
Transfers Out (8,219,656) ( 8,580,558) (10,000) (1,408,120)
Other Financing Sources (Uses) 1,683,076 21,567,761 434,963 (1,408,120)
Net Increase (Decrease) in Fund Balances (994,333) 12,848,591 513,530 (552,422)
Fund Balances, July 1 15,025,443 4,829,216 3,536,222 1,621,088
Fund Balances, June 30 $ 14,031,110 $ 17,677,807 $ 4,049,752 $ 1,068,666
The accompanying notes to the basic financial statements are an integral part of this statement.
- 46 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
(CONTINUED)
TOTAL
ROADS NON-MAJOR GOVERNMENTAL
BOARD GOVERNMENTAL FUNDS
$ - $ 3 8,610 $ 5 9,242,742
- - 2 9,647,125
- 5 2,184 2 08,736
- 8 67,574 3 ,734,340
- - 3 97,141
- - 1 ,147,179
415,136 9 3,002 5 08,138
- - 8 63,782
217,787 7 ,095,152 1 2,061,066
- - 1 93,567
204,827 5 05,353 3 ,396,080
- 5 1,537 2 58,937
3,967 1 8,731 1 44,553
- 1 06,221 1 40,731
132,969 8 8,590 7 86,719
974,686 8 ,916,954 1 12,730,836
- 7 6,258 1 0,608,976
- 9 71,231 2 1,344,575
4,326,305 - 7 ,671,352
- - 1 ,637,101
- 4 ,496,147 4 ,767,647
- - 5 3,545,597
- - 3 ,055,335
- - 1 ,424,078
- 4 ,707,561 5 ,263,577
- 6 64,906 1 ,847,195
- - 1 ,373,090
- 2 7,454 7 ,868,741
- 4 4,425 4 ,948,144
- - 1 45,884
- - 3 ,114,505
4,326,305 1 0,987,982 1 28,615,797
(3,351,619) (2,071,028) (15,884,961)
- - 2 9,299,154
- - 1 57,800
14,140 - 3 0,861
- 9 ,161 1 5,826
4,663,551 2 ,505,686 1 8,184,911
(444,963) (80,945) (18,744,242)
4,232,728 2 ,433,902 2 8,944,310
881,109 3 62,874 1 3,059,349
3,313,452 8 ,181,576 3 6,506,997
$ 4,194,561 $ 8 ,544,450 $ 4 9,566,346
The accompanying notes to the basic financial statements are an integral part of this statement.
- 47 -

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, 2010
Change in Fund Balances - Total governmental funds, per Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds $ 1 3,059,349
Amounts reported for governmental activities in the Statement of Activities are different because:
Capital outlay expenditures are reported in Governmental Funds during the year. However, in the Statement
of Activities, costs for capital asset purchases are allocated over the estimated useful lives of those
assets and reported as depreciation expense over a number of years. Therefore, the change in assets
differs from the change in fund balance by the amount of capital asset purchases that will be capitalized
and depreciated over a number of years, less the offsetting depreciation expense for the current year.
Proceeds received on disposal of capital assets are reported in Governmental Funds as current financial
resources. In the Statement of Activities, only the gain or (loss) realized on disposal of capital assets is
reported. Thus, the change in net assets differs from the change in fund balance by the cost of capital
assets sold, net of accumulated depreciation (i.e., book value).
In addition, developer contributions of capital assets (primarily infrastructure) are not reported in Governmental
Funds because they do not represent current financial resources available to cover this year's expenditures.
Thus, the change in net assets differs from the change in fund balance by the value of capital assets received.
Donated Capital Assets are not reported in Governmental Funds because they are not current financial resources.
However, in the Statement of Activities, they are recognized as capital contributions and as capital assets.
The following is a summary of the net increase in capital assets, which is detailed in Note 6 - Capital Assets - Primary Government.
ADD capital assets acquired as capital outlay $ 1,350,511
ADD capital assets resulting from force-in-kind expenditures 207,588
ADD capital assets resulting from general capital projects 6,303,944
ADD capital assets resulting from roads capital projects 214,286
ADD capital asset donations and transfers 2,220,497
SUBTRACT book value of disposed capital assets, net of accumulated depreciation (1,473,412)
SUBTRACT current year depreciation expense (3,307,796)
Net Increase in Capital Assets 5,515,618
Receivables not included in the governmental funds because they relate to debt.
A portion of the County’s 2009 Bond offering was issued using Build America Bonds. As an incentive to use
these bonds, the Federal government offered an interest reimbursement grant, which offsets the County’s debt
service for interest expense. Therefore, at year end, a receivable is booked for the interest reimbursement due, but
not yet received.
ADD current year's bond interest reimbursement receivable - Build America Bond $ 113,640
The accompanying notes to the basic financial statements are an integral part of this statement.
CONTINUED
- 48 -

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, 2010
(CONTINUED)
Revenues that are earned but not collected within sixty days after the end of the fiscal year are not considered to be
"available" to meet current cash requirements and are deferred in the Governmental Funds to the following year.
However, these revenues are recognized in the Statement of Activities. The amount by which this type of
deferred revenue increased or (decreased) relative to the prior year is as follows:
ADD current year's Property Tax Deferred Revenue $ 106,476
SUBTRACT prior year's Property Tax Deferred Revenue (81,977)
$ 24,499
ADD current year's Income Tax Deferred Revenue 5,116,295
SUBTRACT prior year's Income Tax Deferred Revenue (9,048,173)
(3,931,878)
Issuance of long-term debt (e.g., bonds, notes, and capital leases) provides current financial resources to
Governmental Funds, while repayment of principal due for long-term debt consumes current resources.
In the Statement of Net Assets, issuing debt increases long term liabilities, while repayment reduces
those liabilties.
ADD retirements and repayments made on long term debt
General Bonds Payable 5,060,636
Notes Payable 61,101
Bond Premiums, Net of Issuance Costs 65,290
Deferred Refunding Costs (170,483)
Capital Leases 49,598
5,066,142
SUBTRACT proceeds of 2009 Bond (28,499,154)
SUBTRACT Bond premium, net of issuance costs for 2009 bond (11,916)
SUBTRACT proceeds of Loan for Sause Property (800,000)
SUBTRACT College reimbursement received (223,191)
ADD County's allocation to College for debt 53,938
(24,414,181)
Some accrued expenses, reported in the Statement of Activities, do not require the use of current financial
resources and are not reported as expenditures in the Governmental Funds. The net amount by which
these accruals increased or (decreased) over the prior period is as follows:
ADD prior year's Accrued Interest Payable 803,131
SUBTRACT current year's Accrued Interest Payable (1,049,686)
(246,555)
ADD prior year's Accrued Compensated Absences 2,243,389
SUBTRACT current year's Accrued Compensated Absences (2,434,947)
(191,558)
ADD prior year's Accrued Other Post Employment Benefit Obligation 3,688,090
SUBTRACT current year's Accrued Other Post Employment Benefit Obligation (8,548,639)
(4,860,549)
Change in Net Assets - governmental activities, per Statement of Activities $ (14,931,615)
The accompanying notes to the basic financial statements are an integral part of this statement.
- 49 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET ASSETS
ENTERPRISE FUNDS
JUNE 30, 2010
SANITARY DISTRICT
SEWER WATER RESTRICTED
ASSETS OPERATIONS OPERATIONS FUND
Current Assets
Unrestricted
Equity in Pooled Cash $ 5,837,346 $ 2,527,675 $ -
Accounts Receivable (Net) 326,162 160,121 -
Due from Other Funds 152,458 - -
Due from Other Governments 33,114 - -
Bond Interest Reimbursement Receivable - Build America Bond - - -
Inventories 341,249 - -
Prepaid Expenses - - -
Restricted
Restricted Equity in Pooled Cash - - 7,437,899
Restricted Accounts Receivable (Net) - - 15,157
Total Current Assets 6,690,329 2,687,796 7,453,056
Noncurrent Assets
Restricted
Special Assessments Receivable (Net) - - 1,392,574
Capital Assets
Land, Improved and Unimproved 816,331 - -
Buildings and Improvements to Buildings 14,265,248 166,752 -
Improvements Other Than Buildings 1,615,474 128,152 -
Automotive Equipment 926,651 224,328 -
Equipment 20,012,320 1,043,966 -
Furniture and Fixtures 47,216 6,228 -
Infrastructure Improvements 48,252,272 19,971,942 -
Construction in Progress 251,490 806,324 -
Capital Assets before Depreciation 86,187,002 22,347,692 -
Less Accumulated Depreciation (25,488,609) (6,007,710) -
Total Capital Assets, Net of
Accumulated Depreciation 60,698,393 16,339,982 -
Total Noncurrent Assets 60,698,393 16,339,982 1,392,574
Total Assets 67,388,722 19,027,778 8,845,630
LIABILITIES
Current Liabilities
Payable from Unrestricted Assets
Accounts Payable 148,093 64,727 -
Accrued Interest Payable 103,448 8,475 -
Escrow Deposits 26,220 - -
Due to Other Funds - - -
Unearned Revenue 723,133 - -
Current Portion of Compensated Absences 105,698 42,008 -
Current Portion of Bonds/Notes Payable 1,445,003 436,204 -
Payable from Restricted Assets
Current Portion of Bonds Payable - - -
Total Current Liabilities 2,551,595 551,414 -
Noncurrent Liabilities
Payable from Unrestricted Assets
Compensated Absences 75,527 30,016 -
Other Post-Employment Benefit Obligation 905,243 277,659 -
Bonds/Notes Payable 16,524,298 1,046,400 -
Payable from Restricted Assets
Unearned Revenue - - 1,392,574
Total Noncurrent Liabilities 17,505,068 1,354,075 1,392,574
Total Liabilities 20,056,663 1,905,489 1,392,574
NET ASSETS
Invested in Capital Assets, Net of Related Debt 42,729,092 14,857,378 -
Restricted for:
Debt Service - - -
Capital Projects - - 753,300
Unrestricted 4,602,967 2,264,911 6,699,756
Total Net Assets $ 47,332,059 $ 17,122,289 $ 7,453,056
The accompanying notes to the basic financial statements are an integral part of this statement.
- 50 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET ASSETS
ENTERPRISE FUNDS
JUNE 30, 2010
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ - $ 8,365,021 $ - $ 514,308 $ 8,879,329
- 4 86,283 1 16,381 2,504 605,168
- 1 52,458 - 30,000 182,458
- 3 3,114 4 98,893 454,904 986,911
- - 675 1,410 2,085
- 3 41,249 3 1,251 6,423 378,923
- - 7 2,938 11,688 84,626
3,925,026 11,362,925 - - 11,362,925
41,872 5 7,029 - - 57,029
3,966,898 20,798,079 7 20,138 1,021,237 22,539,454
2,032,091 3,424,665 - - 3,424,665
- 8 16,331 10,670,168 2,722,967 14,209,466
- 14,432,000 1,126,839 2,659,970 18,218,809
- 1,743,626 2,146,831 2,516,933 6,407,390
- 1,150,979 5 9,470 83,445 1,293,894
- 21,056,286 4 3,084 796,321 21,895,691
- 5 3,444 3 ,344 30,750 87,538
- 68,224,214 - - 68,224,214
- 1,057,814 2,579,598 1,562,453 5,199,865
- 108,534,694 16,629,334 10,372,839 135,536,867
- ( 31,496,319) ( 2,264,994) (1,414,782) (35,176,095)
- 77,038,375 14,364,340 8,958,057 100,360,772
2,032,091 80,463,040 14,364,340 8,958,057 103,785,437
5,998,989 101,261,119 15,084,478 9,979,294 126,324,891
- 2 12,820 1 70,468 285,104 668,392
3,918 1 15,841 9 ,406 10,567 135,814
- 2 6,220 8 ,430 10,908 45,558
152,458 1 52,458 5 00,591 125,147 778,196
- 7 23,133 - 8,703 731,836
- 1 47,706 5 ,967 19,427 173,100
- 1,881,207 4 0,523 92,186 2,013,916
50,336 5 0,336 - - 50,336
206,712 3,309,721 7 35,385 552,042 4,597,148
- 1 05,543 4 ,264 13,881 123,688
- 1,182,902 1 01,141 278,076 1,562,119
232,998 17,803,696 6 22,516 1,121,269 19,547,481
1,888,699 3,281,273 - - 3,281,273
2,121,697 22,373,414 7 27,921 1,413,226 24,514,561
2,328,409 25,683,135 1,463,306 1,965,268 29,111,709
- 57,586,470 13,701,301 7,744,602 79,032,373
3,670,580 3,670,580 - 1,771 3,672,351
- 7 53,300 - - 753,300
- 13,567,634 (80,129) 267,653 13,755,158
$ 3,670,580 $ 75,577,984 $ 13,621,172 $ 8,014,026 $ 97,213,182
The accompanying notes to the basic financial statements are an integral part of this statement.
- 51 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
SANITARY DISTRICT
SEWER WATER RESTRICTED
OPERATIONS OPERATIONS FUND
OPERATING REVENUES
Charges for Services $ 5,076,621 $ 1,951,780 $ 653,604
Intergovernmental 98,492 - -
Bond Interest Reimbursement - Build America Bond - - -
Material Sales 836 5 ,843 -
Miscellaneous Revenues 112,461 1 38,898 -
Total Operating Revenues 5,288,410 2,096,521 653,604
OPERATING EXPENSES
Cost of Sales and Services
Collection 2,004,152 - -
Distribution - 1 45,726 -
Treatment 1,254,318 1,018,556 -
Shop 150,700 9 4,118 -
Airport - - -
Parks and Recreation - - -
Public Marinas - - -
Total Cost of Sales and Services 3,409,170 1,258,400 -
Administration and Inspection 921,039 5 17,857 -
Other Post-Employment Benefit Contributions 514,051 1 72,643 -
Depreciation 2,892,171 4 71,715 -
Total Operating Expenses 7,736,431 2,420,615 -
Operating Income (Loss) (2,448,021) (324,094) 653,604
NON-OPERATING REVENUES (EXPENSES)
Investment Income 97,410 4 5,858 133,855
Interest Expense (327,864) (101,565) -
Total Non-Operating Revenues (Expenses) (230,454) (55,707) 133,855
Income (Loss) Before Contributions and Transfers (2,678,475) (379,801) 787,459
Capital Contributions, Fees and Grants 160,693 4 7,422 -
Transfers In 1,715,923 9 75,169 -
Transfers Out - - (1,574,314)
Net Transfers In (Out) 1,715,923 9 75,169 (1,574,314)
Change in Net Assets (801,859) 6 42,790 (786,855)
Total Net Assets - Beginning of Year 48,133,918 16,479,499 8,239,911
Total Net Assets - End of Year $ 47,332,059 $ 17,122,289 $ 7,453,056
The accompanying notes to the basic financial statements are an integral part of this statement.
- 52 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ 542,423 $ 8,224,428 $ 50,585 $ 1 ,695,803 $ 9,970,816
- 98,492 32,284 68,124 198,900
- - 1,638 2,731 4,369
- 6,679 382,710 74,511 463,900
- 251,359 155,548 91,733 498,640
5 42,423 8,580,958 622,765 1,932,902 11,136,625
- 2,004,152 - - 2,004,152
- 145,726 - - 145,726
- 2,272,874 - - 2,272,874
- 244,818 - - 244,818
- - 768,866 - 768,866
- - - 2,364,284 2,364,284
- - - 77,919 77,919
- 4,667,570 768,866 2,442,203 7,878,639
- 1,438,896 - - 1,438,896
- 686,694 57,970 201,500 946,164
- 3,363,886 171,598 191,139 3,726,623
- 10,157,046 998,434 2,834,842 13,990,322
542,423 (1,576,088) (375,669) (901,940) (2,853,697)
158,639 435,762 283 - 436,045
(24,230) (453,659) (19,346) (51,798) (524,803)
134,409 (17,897) (19,063) (51,798) (88,758)
676,832 (1,593,985) (394,732) (953,738) (2,942,455)
- 208,115 1,519,810 835,018 2,562,943
1,056,796 3,747,888 111,765 454,935 4,314,588
( 2,084,030) (3,658,344) (10,000) (86,913) (3,755,257)
( 1,027,234) 89,544 101,765 368,022 559,331
(350,402) (1,296,326) 1,226,843 249,302 179,819
4,020,982 76,874,310 12,394,329 7,764,724 97,033,363
$ 3,670,580 $ 75,577,984 $ 13,621,172 $ 8 ,014,026 $ 97,213,182
The accompanying notes to the basic financial statements are an integral part of this statement.
- 53 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
SANITARY DISTRICT
SEWER WATER RESTRICTED
OPERATIONS OPERATIONS FUND
CASH FLOW FROM OPERATING ACTIVITIES
Receipts from customers and users $ 4,972,470 $ 1,927,133 $ 648,566
Receipts from other operating sources 1 78,675 1 44,741 -
Receipts from bond interest reimbursement - Build America Bond - - -
Payments to suppliers (1,776,964) (899,874) -
Increase in accounts payable - - -
Payments to employees and on behalf of employees (2,563,824) ( 1,001,231) -
Net Cash Provided (Used) by Operating Activities 8 10,357 1 70,769 648,566
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in from other funds 1,715,923 9 75,169 -
Receipts (payments) from interfund loans (112,117) - -
Transfers to other funds - - (1,574,314)
Principal paid on interfund loans - - (40,000)
Net Cash Provided (Used) by Noncapital Financing Activities 1,603,806 9 75,169 (1,614,314)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Receipts from capital grants - - -
Principal paid on capital debt (1,422,249) (432,728) -
Receipts from 2009 Bonds - - -
Interest paid on capital debt (341,205) (84,693) -
Acquisition and construction of capital assets (306,353) (626,663) -
Net Cash (Used) by Capital and Related Financing Activities (2,069,807) ( 1,144,084) -
CASH FLOWS FROM INVESTING ACTIVITIES
Net Cash Provided by Investing Activities - Investment Income 9 7,410 4 5,858 133,855
Net Increase (Decrease) in Cash and Cash Equivalents 4 41,766 4 7,712 (831,893)
Balances - Beginning of the year 5,395,580 2,479,963 8,269,792
Balances - End of the year $ 5,837,346 $ 2,527,675 $ 7,437,899
Reconciliation of operating income (loss) to net cash
provided by operating activities
Operating income (loss) $ ( 2,448,021) $ ( 324,094) $ 653,604
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation 2,892,171 4 71,715 -
Effect of changes in operating assets and liabilities:
Accounts receivable, net (25,813) (24,647) (5,038)
Special assessments receivable, net - - 93,791
Operating grants receivable (33,114) - -
Build America Bonds Interest receivable - - -
Inventories and Prepaid Expenses (5,170) - -
Vendor accounts payable (24,082) (138,596) -
Compensated absences 1 8,673 1 3,748 -
Other Post-Employment Benefit Obligation 5 14,051 1 72,643 -
Escrow deposits payable (10,342) - -
Deferred revenue collected in advance (67,996) - (93,791)
Net Cash Provided (Used) by Operating Activities $ 8 10,357 $ 170,769 $ 648,566
Noncash investing, capital and financing activities:
Donation of capital assets (infrastructure) by developers $ 160,693 $ 4 7,422 $ -
The accompanying notes to the basic financial statements are an integral part of this statement.
- 54 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ 572,661 $ 8,120,830 $ 45,679 $ 1 ,772,296 $ 9,938,805
- 323,416 543,957 204,641 1,072,014
- - 963 1,321 2,284
- (2,676,838) (492,913) (1,125,758) (4,295,509)
- - - 184,844 184,844
- (3,565,055) (220,993) (1,351,447) (5,137,495)
572,661 2,202,353 (123,307) (314,103) 1,764,943
1,056,796 3,747,888 111,765 454,935 4,314,588
152,458 40,341 500,591 135,147 676,079
(2,084,030) (3,658,344) (10,000) (86,913) (3,755,257)
(40,341) (80,341) - (40,507) ( 120,848)
(915,117) 49,544 602,356 462,662 1,114,562
- - 1,090,608 491,045 1,581,653
(46,705) (1,901,682) (35,318) (83,283) (2,020,283)
- - 169,468 353,952 523,420
(24,640) (450,538) (16,851) (45,084) ( 512,473)
- (933,016) (1,687,239) (1,358,611) (3,978,866)
(71,345) (3,285,236) (479,332) (641,981) (4,406,549)
158,639 435,762 283 - 436,045
(255,162) (597,577) - (493,422) (1,090,999)
4,180,188 20,325,523 - 1,007,730 21,333,253
$ 3,925,026 $ 19,727,946 $ - $ 514,308 $ 20,242,254
$ 542,423 $ (1,576,088) $ (375,669) $ (901,940) $ (2,853,697)
- 3,363,886 171,598 191,139 3,726,623
(850) (56,348) (2,338) 82,688 24,002
458,894 552,685 - - 552,685
- (33,114) (26,585) (29,727) ( 89,426)
- - (675) (1,410) ( 2,085)
- (5,170) (71,551) 271 ( 76,450)
- (162,678) 126,379 149,658 113,359
- 32,421 133 (88) 32,466
- 686,694 57,969 201,501 946,164
- (10,342) 700 154 ( 9,488)
(427,806) (589,593) (3,268) (6,349) ( 599,210)
$ 572,661 $ 2,202,353 $ (123,307) $ (314,103) $ 1,764,943
$ - $ 208,115 $ - $ - $ 208,115
The accompanying notes to the basic financial statements are an integral part of this statement.
- 55 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF FIDUCIARY NET ASSETS
PRIVATE PURPOSE TRUST, OTHER POST-EMPLOYMENT BENEFIT TRUST, AND AGENCY FUNDS
JUNE 30, 2010
PRIVATE
PURPOSE
TRUST FUND OTHER
TAX SALE POST-EMPLOYMENT AGENCY
DEPOSITS BENEFIT TRUST FUND FUNDS
ASSETS
Cash and Cash Equivalents $ 280,255 $ 1,188,007 $ 4 17,456
Miscellaneous Receivables - - 2 6,149
Total Assets 280,255 1,188,007 $ 4 43,605
LIABILITIES
Due to Other Governments - 155,393 $ 1 39,062
Deposits and Escrows - - 3 04,543
Total Liabilities - 155,393 $ 4 43,605
NET ASSETS
Held in Trust $ 280,255 $ 1,032,614
The accompanying notes to the basic financial statements are an integral part of this statement.
- 56 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
PRIVATE PURPOSE TRUST AND OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2010
PRIVATE
PURPOSE
TRUST FUND
TAX SALE
DEPOSITS
ADDITIONS
Total Additions - Tax Sale Collections in Excess of Tax Due $ 1 27,009
DEDUCTIONS
Distributions to Property Holders 6 4,604
Distributions to General Fund per State Statute 1 56,720
TOTAL DEDUCTIONS 2 21,324
Change in Assets ( 94,315)
NET ASSETS HELD IN TRUST
Net Assets-Beginning of Year 3 74,570
Net Assets-End of Year $ 280,255
OTHER
POST-EMPLOYMENT
BENEFIT TRUST FUND
ADDITIONS
CONTRIBUTIONS
Employers $ 1 ,793,007
Members 8 01,960
TOTAL CONTRIBUTIONS 2 ,594,967
Investment Income 2 ,577
Total Additions 2 ,597,544
DEDUCTIONS
Claims Paid 2 ,594,967
Change in Assets 2 ,577
NET ASSETS HELD IN TRUST
Net Assets-Beginning of Year 1 ,030,037
Net Assets-End of Year $ 1,032,614
The accompanying notes to the basic financial statements are an integral part of this statement.
- 57 -

QUEEN ANNE'S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
INDEX
Note
1 Summary of Significant Accounting Policies 59-69
2 Budgets and Budgetary Accounting 69-70
3 Cash, Investments and Investment Income 71-72
4 Accounts Receivable 73-74
5 Deferred or Unearned Revenue 75
6 Capital Assets 76-81
7 Interfund Receivables and Payables 82
8 Interfund Transfers 83
9 Noncurrent Liabilities 84-93
10 Restricted Assets and Liabilities
and Reserved/Designated Fund Balances 94-96
11 Risk Management 97
12 Retirement Plans 98-100
13 Deferred Compensation Plan 100
14 Other Post Employment Benefits 101-106
15 Deficit Equity Balances 107
16 Commitments and Contingencies 107-108
17 Joint Venture 108-109
18 Pollution Remediation Obligations 109
19 Capital Asset Donation 110
20 Subsequent Events 110-111
- 58 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
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 all the 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 Board is
reported as a special revenue fund.
Discretely Presented Component Units
The Board of Education of Queen Anne’s County is a five-member body responsible for the operation of Queen
Anne’s County Schools. Beginning with the November 2008 election, the members were elected by the County
voters. The Board of Education is a component unit of Queen Anne’s County, Maryland by virtue of the Board’s
fiscal dependency on the County through the County’s responsibility for levying taxes, issuing debt, and its
budgetary control over the Board of Education.
The Queen Anne’s County Free Library is a component unit of the Queen Anne’s County Government by virtue of
the Library’s fiscal dependency on the County. The County levies taxes and approves the Library’s budget. The
Library Board of Trustees governs the Library. Vacancies on the Board of Trustees are filled by vote of the
remaining members of that Board.
The Queen Anne’s County Public Housing Authority is a component unit of the Queen Anne’s County Government
because the County Commissioners appoint the members of the Housing Authority’s Board of Commissioners. In
addition, the County contributes substantial financial and administrative resources to the Housing Authority on an
on-going basis, including an annual appropriation, office space and utilities, and administrative services for human
resources, accounting, and other functions.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. REPORTING ENTITY (CONTINUED)
Complete financial statements of the discretely presented component units can be obtained from their respective
administrative offices listed below:
Board of Education of Queen Anne’s County
Queen Anne’s County Housing Authority
202 Chesterfield Avenue c/o Queen Anne’s County
Centreville, Maryland 21617 Finance Office
107 N. Liberty Street
Centreville, Maryland 21617
The Queen Anne’s County
Free Library
121 S. Commerce Street
Centreville, Maryland 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 17.
Complete financial statements can be obtained at the joint ventures’ administrative office listed below:
Maryland Environmental Service
259 Najoles Road
Millersville, Maryland 21108
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Government-Wide Financial Statements – The government-wide financial statements report information on all of
the non-fiduciary activities of the Primary Government and its component units. Since, by definition, assets of
fiduciary funds are held for the benefit of a third party (other local governments, private parties, etc.) and cannot be
used to address activities or obligations of the County, these funds are not incorporated into the government-wide
statements.
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. For the most part, the effect of interfund activity has been removed from these statements.
Statement of Net Assets – 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
Assets and report depreciation expense, the cost of “using up” capital assets, in the Statement of Activities. Net
assets are divided into three categories: 1) invested in capital assets, net of related debt; 2) restricted; and 3)
unrestricted. Invested in capital assets, net of related debt 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 net assets 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 net assets consist of net assets that do not meet the definition of
restricted or invested in capital assets, net of related debt.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)
Statement of Activities – This statement demonstrates the degree to which the direct expenses of a given function
for the fiscal year are offset by program revenues. Therefore, this statement reflects both the gross and net costs
per functional category (general government; public safety; public works; health; social services; education; parks
and recreation; library; conservation of natural resources; and economic/community development) that are
otherwise supported by general revenues. Direct expenses (including depreciation) are those that are clearly
identifiable with a specific function. Program revenues include: 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function. The
operating grants and contributions column includes operating-specific and discretionary (either operating or capital)
grants, while the capital grants and contributions column reflects capital-specific grants. Taxes and other items not
properly included among program revenues are reported as general revenues. The County does not allocate
indirect expenses.
Fund Financial Statements – Separate financial statements are provided for governmental funds and proprietary
funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements.
In the fund financial statements, financial transactions and accounts of the County are organized on the basis of
funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for
with a separate set of self-balancing accounts that comprise assets, liabilities, fund balance/net assets, revenues,
and expenditures/expenses.
Governmental Fund Budget-to-Actual Comparison Statements – Demonstrating compliance with the adopted
budget is an important component of government’s accountability to the public. The County provides budget-to-
actual comparisons of the General Fund and individual major special revenue funds as part of the required
supplementary information subsection located after the Notes to the basic financial statements. In addition, budget-
to-actual comparisons are provided for the General Fund on a departmental level, and for all other individual funds
with legally adopted budgets in the supplementary information subsection.
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.
- 61 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
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 revenue. 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 revenue is 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 deferred 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 revenue.
Fiduciary Funds – The County’s trust fund financial statementsare reported using the economic resources
measurement focus and accrual basis of accounting, as is used by proprietary funds. Agency funds report only
assets and liabilities; they do not report changes in net assets. Therefore, agency funds are reported using the
accrual basis of accounting to recognize receivables and payables. Activity during the year is accounted for as
additions to and deductions from asset and liability accounts (for Agency Funds) and Net Assets (for Private
Purpose and Other Post-Employment Benefit Trust Funds). Since fiduciary funds are, by their very nature,
independent of the County, they are omitted from all government-wide statements.
Financial Statement Presentation - The County reports the following major governmental and proprietary funds,
as well as fiduciary funds.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
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 Highway User Tax funds and grants received from State and Federal
Governments.
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.
Roads Board - This fund accounts for financial resources received from the State, plus a substantial
amount from the County, for the maintenance of County road infrastructure.
Enterprise Funds - Enterprise Funds are used to account for those activities of the Primary Government
that are financed and operated in a manner similar to private business enterprises in that all costs and
expenses, including depreciation, are recovered primarily or partially through user charges. The Sanitary
District Funds are intended to be self-supporting as a whole, while the Airport is intended to be only partially
self-supporting. The County reports the following major enterprise funds:
Sanitary District - Sewer Operations - This fund is used to account for the operation of the sewer
system serving approximately 6,500 customers.
Sanitary District - Water Operations - This fund is used to account for the operation of the water
supply system serving approximately 4,000 customers.
Sanitary District - 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.
Sanitary District - Debt Service Funds- 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.
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:
- 63 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
Private-Purpose Trust Fund– This fund accounts for an arrangement under which monies
received at tax sale, in excess of taxes due, are legally held in trust for property owners who have
not been located within a legally-defined time frame.
Other Post-Employment Benefit Trust Fund– This fund accounts for the funding of retiree benefit
plans of participating agencies, which are: (1) Queen Anne’s County, Maryland, including the
Queen Anne’s County Public Housing Authority; (2) Queen Anne’s County Board of
Education; and (3) Queen Anne’s County Free Library. Other agencies and political
subdivisions have the right to participate in this Trust Fund also, as an investment vehicle
for their Other Post-Employment Benefit Plan through the pooling of investment resources.
Currently, the only other agency participating is Kent County, Maryland.
Agency Funds- These funds are used to account for assets, such as property taxes, held in a
purely custodial capacity where the County receives, temporarily invests, and remits such resources
to individuals, private organizations or other governments.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are
followed in both the government-wide and proprietary fund financial statements to the extent that those standards
do not conflict with or contradict guidance of GASB. Governments also have the option of following subsequent
private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The
County has elected not to follow subsequent private-sector guidance.
In the process of aggregating data for the Statement of Net Assets 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.
D. ASSETS, LIABILITIES, AND NET ASSETS 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.”
- 64 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
2) Receivables and Payables
Due From/To 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 Assets, 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 of materials, parts and supplies are stated at cost as determined by the first-in, first-out
method. For budgetary purposes, the cost is recorded as an expenditure at the time individual
inventory items are purchased (purchase method). The consumption method is used for financial
reporting purposes whereby expense is recognized as the items are used (consumed). Reported
inventories are equally offset by a fund balance reserve. Inventories in the Proprietary Funds are also
recorded using the consumption method.
Prepaid items are payments made to vendors for services that will benefit periods beyond the end of
the fiscal year.
4) Capital Assets
Capital assets, which include property, plant, equipment, intangibles, and infrastructure assets (e.g.
roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and
similar items) are reported in the applicable governmental or business-type activities columns in the
government-wide financial statements. The County defines capital assets as assets with an initial,
individual cost of $5,000 ($1,000 for computers) or more and an estimated useful life in excess of one
year. Such assets are valued at cost where historical records are available and at estimated historical
cost where no historical records exist. Donated capital assets are recorded at estimated fair market
value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value or functionality of the asset,
or materially extend asset lives, are not capitalized.
Land and other inexhaustible assets such as intangible property easements and other land usage
rights are capitalized but not depreciated, as these assets are expected to have indefinite useful lives.
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).
- 65 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
4) Capital Assets (continued)
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Assets Years
Buildings and structures 20 - 50
Improvements other than buildings 15 - 50
Infrastructure 20 - 50
Machinery and equipment 3 - 20
Office furniture, fixtures and equipment 5 - 15
Vehicles 7 - 10
5) Other Post-Employment Benefit Obligation
The Queen Anne’s County post-employment plan provides medical insurance benefits to
retirees and their eligible dependents. The Plan’s financial information is prepared based on
full accrual accounting. Expenses are recognized on the accrual basis as retirees’ insurance
costs are incurred. Additional details regarding other post-employment benefits can be found
in Notes 9 and 14.
Primary Government– In both the government-wide and enterprise funds, liability for other post-
employment benefits is adjusted at the end of the fiscal year. For the year ended June 30, 2010, the
other post-employment benefit obligation amounted to $10,110,758, including both governmental
($8,548,639) and business-type activities ($1,562,119).
Component Unit – Queen Anne’s County Housing Authority –For the year ended June 30, 2010,
the other post-employment benefit obligation for the Housing Authority amounted to $291,066.
Component Unit - Board of Education – For the year ended June 30, 2010, the other post-
employment benefit obligation for the Board of Education amounted to $9,535,459.
Component Unit – Free Library – For the year ended June 30, 2010, the other post-employment
benefit obligation for the Library amounted to $573,566.
6) Compensated Absences
Primary Government – The County’s policy is to pay employees for any unused vacation time, up to
a maximum of 65 days, upon termination of employment. Compensated absences are reported in
governmental funds only if they have matured, such as payments upon termination of employment,
vacation, and compensatory time paid as they are used during the year. Such time is paid as regular
wages. Compensated absences are reported in enterprise funds as they are accrued. In the
government-wide statements, liability for compensated absences is adjusted at the end of each fiscal
year to current salary costs. Accumulated unpaid leave of the County amounted to $2,731,735 at
June 30, 2010, including both governmental ($2,434,947) and business-type activities ($296,788).
- 66 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
6) Compensated Absences (continued)
Component Unit – Queen Anne’s County Housing Authority –The Housing Authority’s employees
are employees of the primary government, which is ultimately liable for their salaries and benefits.
Therefore, for the year ended June 30, 2010 the County recognized a liability for compensated
absences for these employees as part of its governmental activities in the amount of $47,941.
Component Unit - Board of Education – Accumulated unpaid annual leave is accrued when earned
in the Unrestricted Current Expense Fund using the modified accrual basis of accounting. In fiscal
year 1992, the Board adopted the practice of paying for any unused vacation time, up to the maximum
number of days that employees can carry over from one year to the next, upon termination of
employment. Maximum number of days varies from 20 to 30 days, depending on classification.
Liabilities for compensated absences are inventoried at the end of each fiscal year and adjusted to
current salary costs. Accumulated compensated absences as of June 30, 2010 amounted to
$926,197. Because payment of sick leave is contingent upon employees’ future illness or retirement,
the Board of Education expects its commitment to provide sick leave to be met during the normal
course of activities over the working lives of its present employees. Any accumulated unused sick
leave at retirement will ultimately be taken into consideration and paid through retirement benefits by
the State of Maryland.
7) 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 and discounts 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 generally reported as a deferred asset and amortized over the
term of the related debt using the straight-line method.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing
sources while discounts on debt issuances are reported as other financing uses. Issuance costs,
whether or not withheld from the actual debt proceeds received, are reported as expenditures. When
debt is refunded, payments to the Bond Refunding Agent and associated bond issuance costs are
reported as other financing uses.
8) Net Assets/Fund Equity
In the government-wide financial statements, the County has reported negative unrestricted net assets
of $45,795,597. This deficit is due to the fact that the County issues general obligation bonded debt
for purposes of capital construction on behalf of the Queen Anne’s County Board of Education. The
capital assets constructed with the proceeds of this debt are reported on the financial statements of
Queen Anne’s County Board of Education. This amount is also classified as net assets invested in
capital assets, net of related debt, in the Board of Education column of the Component Units section of
the County’s government-wide Statement of Net Assets. Since the Board of Education is not
authorized to borrow funds, they do not have any debt.
- 67 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
8) Net Assets/Fund Equity (continued)
Since the issuance of such debt has not resulted in capital assets owned by the Primary Government,
the effect of this debt is reflected in a deficit balance in unrestricted net assets in the Governmental
Activities column of the government-wide Statement of Net Assets. At June 30, 2010, the County has
reported outstanding general obligation debt related to assets held by the Board of Education
amounting to $57,677,186. Absent the effect of this relationship, the County would have reported
positive unrestricted net assets of governmental activities in the amount of $11,881,589.
The County reports a portion of its net assets in its government-wide financial statements as restricted.
In this context, restricted means that, as of June 30, 2010, this portion of net assets was restricted for
a particular purpose either by external parties; by provision of the County Charter; or by enabling
legislation. Net assets restricted by enabling legislation represent legislative restrictions that a party
external to the government can compel the government to honor. For the County, such amounts
represent primarily accumulated net assets attributed to revenue streams that are restricted for
specified purposes in the County Code. This generally includes Capital Projects Fund impact fee
collections and developer exactions on hand for outside entities; ending fund balances of substantially
all special revenue funds; and ending unrestricted net assets of the Sanitary District and other
enterprise funds. Such amounts, which are restricted net assets in the government-wide statement of
Net Assets, are as follows at year-end:
Restricted Net Assets
Governmental activities $ 2 2,290,307
Business-type activities 1 8,180,809
Total $ 4 0,471,116
In the fund financial statements, governmental funds report reservations of fund balance for amounts
that are not available for appropriation or are legally restricted by outside parties for use for a specific
purpose.
9) 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 principal residences only, 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.
- 68 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
9) Property Tax (continued)
For non-principal residences, payment is due in full by September 30. Beginning October 1, a penalty
is charged for each month that taxes remain unpaid.
For new construction, completed and assessed between July 1 and December 31, a supplementary
tax is levied equal to half of the full-year levy. Payment in full is due by March 31. Beginning April 1, a
penalty is charged for each month that taxes remain outstanding.
Real and personal property taxes are levied at rates enacted by the County Commissioners in
the annual budget on the assessed value as determined by the Maryland Department of
Assessments and Taxation. The rates of levy cannot exceed the constant yield rate furnished
by the Maryland State Department of Assessments and Taxation without public notice and
only after public hearings. The County tax rate for the fiscal year ended June 30, 2010 was $0.770
per $100 of assessed value.
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 department 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.
- 69 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING (CONTINUED)
During the fiscal year, the Commissioners may adopt supplemental appropriations. For the year ended
June 30, 2010, supplemental appropriations that increased are as follows:
Original Final
Supplemental Appropriations Budget Budget Increase
General Fund - expenditures and transfers $ 110,048,956 $ 1 12,716,124 $ 2,667,168
Special Revenue Funds that adopt annual budgets
Major - Roads Board - expenditures $ 6,790,254 $ 7 ,217,749 $ 4 27,495
Non-Major that adopt annual budgets -
Housing and Community Services - expenditures 6 10,216 1,704,726 1,094,510
Community Partnerships for Children - expenditures and transfers 1,618,568 2,008,037 3 89,469
Law Library - expenditures 1 0,000 76,258 6 6,258
Fire Company Impact Fees - expenditures - 827,723 8 27,723
Parks & Rec Impact Fees - transfers - 9,777 9 ,777
Agricultural Transfer - expenditures and transfers 1 65,463 1,134,895 9 69,432
Rural Legacy - expenditures - 4,271,424 4,271,424
Purchase of Development Rights - transfers - 415,431 4 15,431
Total Special Revenue Funds that adopt annual budgets $ 9,194,501 $ 1 7,666,020 $ 8,471,519
All final budgets are presented as amended. The County Administrator may approve budget amendments of
$10,000 or less throughout the year. Amendments greater than $10,000 require the approval of the County
Commissioners.
Annual operating budgets are legally adopted for the General Fund, School Impact Fees Capital Projects
Funds, Roads Board Operating Fund, and the following non-major governmental funds: Department of Aging,
Housing and Community Services, Community Partnerships for Children, Dredging Special Assessments,
Kent Narrows, Law Library, Inmate Welfare, Agricultural Transfer, Rural Legacy, Fire Impact Fee Capital
Projects, Parks and Recreation Impact Fee Capital Projects, and Purchase of Development Rights Funds.
Proprietary Fund budgets are adopted for management control only and include all enterprise funds. Budgets
are adopted using the same method of accounting as that used for Fund reporting purposes.
Budgets for the General Capital Projects Fund and the Roads Capital Projects Fund reflect multi-year
appropriations at the individual project level. Expenditures may not legally exceed appropriations at that level
and appropriations lapse at the completion or cancellation of individual projects. In that 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.
GENERAL FUND
No General Fund Departments exceeded their legally adopted expenditure budgets for the year ended June 30,
2010. Note that Salary Reversions are budgeted as a lump sum negative $147,151, but actual amounts are
realized in the individual departments and are not reported as a lump sum in the Reversions activity.
- 70 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME
A. DEPOSITS AND INVESTMENTS
PRIMARY GOVERNMENT, PUBLIC HOUSING AUTHORITY, AND FIDUCIARY FUNDS
Cash and investments were as follows at year-end:
Collected
Primary Government, Public Housing & Fiduciary Carrying Bank Balances Total
Cash and Investments Amount or Fair Value Collateral
Demand Deposit Accounts, Short-Term
Certificates of Deposit and Petty Cash $ 22,541,842 $ 24,172,434 $ 2 9,703,827
Investment in Maryland Local
Government Investment Pool (MLGIP) 45,778,149 45,770,164 4 6,685,567
$ 68,319,991 $ 69,942,598 $ 7 6,389,394
Cash and investments reconcile to the basic financial statements as follows:
Primary Component Unit-
Cash and Investments Government Housing Authority Fiduciary Total
Unrestricted
Equity in Pooled Cash and Investments $ 52,607,339 $ 2 ,035,891 $ 1 ,885,718 $ 5 6,528,948
Cash and Cash Equivalents - 334,073 - 334,073
Restricted
Equity in Pooled Cash and Investments 11,362,925 - - 1 1,362,925
Investments - 94,045 - 94,045
$ 63,970,264 $ 2 ,464,009 $ 1 ,885,718 $ 6 8,319,991
At year-end, the carrying amount of combined deposits was $22,541,842. The collected bank balances
were $24,172,434 and of those balances, $1,008,178 was insured by federal depository insurance (FDIC).
The uninsured balances were fully collateralized by securities placed with the respective banks’ escrow
agents and held in the County’s name.
Statutes authorize the County to invest in obligations of the United States Government, Federal government
agency obligations, secured time deposits in Maryland banks, bankers’ acceptances, the Maryland Local
Government Investment Pool, money market mutual funds, commercial paper and repurchase agreements
secured by direct government or agency obligations.
Of these options, the County participates in the Maryland Local Government Investment Pool (MLGIP), which
provides all local government units of the state with a safe investment vehicle for short-term investment of
funds. The State Legislature created MLGIP by enacting Section 22G of Article 94 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. Standard and Poors rates the MLGIP as AAAm. The MLGIP seeks to
maintain a constant value of $1 per unit. Unit value is computed using the amortized cost method. In
addition, the net asset value of the pool, marked to market, is calculated and maintained on a weekly basis to
ensure a $1 per unit constant value.
- 71 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
PRIMARY GOVERNMENT, PUBLIC HOUSING AUTHORITY, AND FIDUCIARY FUNDS (CONTINUED)
As of June 30, 2010, the County’s investments, for both custodial and credit risk purposes, consisted solely
of shares in the MLGIP. This investment is not deemed to have either risk and is in conformity with the
County’s policy relating to minimal credit risk of investments.
COMPONENT UNITS (BOARD OF EDUCATION AND LIBRARY)
Component Unit - Board of Education - At year-end, the carrying amount of deposits was $13,051,221,
including $300,000 in certificates of deposit and excluding the carrying amount of fiduciary funds. The
bank balances were $14,869,470. All of the Board’s cash balances, with exception of the $300,000
temporary investment in certificates of deposit, are federally insured due to the financial institutions’
participation in the Temporary Liquidity Guarantee Program. The $300,000 temporary investment in
certificates of deposit is fully collateralized by securities held by the agent of the Board, in the Board’s
name.
Component Unit – Library - At year-end, the carrying amount of all bank deposits, including a $644,761
certificate of deposit, was $1,310,059, while collected bank balances were $1,329,186. Of the bank
balances, $583,605 was secured by the FDIC and $745,581 was secured by collateral held by the pledging
bank’s trust department but not in the Library’s name.
B. INVESTMENT INCOME
PRIMARY GOVERNMENT
Total investment income earned in all governmental funds was credited for use as follows:
Investment
Governmental Funds Income
General Fund $ 62,808
Other Funds 16,240
Unrestricted Revenue 79,048
Restricted Revenue 65,505
Total Investment Income $ 144,553
- 72 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 4 - ACCOUNTS RECEIVABLE
Receivables as of June 30, 2010 for the governmental and business-type activities are as follows:
Total
General Roads School Non-Major Total Total Governmental
General Capital Capital Impact Fees Roads Governmental Governmental Enterprise and Enterprise
Accounts Receivable Fund Projects Projects Capital Board Funds Funds Funds Funds
Receivables
Taxes - Real Property $ 1 15,720 $ - $ - $ - $ - $ - $ 115,720 $ - $ 115,720
Taxes - Other 8 1,466 168,367 - - - - 249,833 - 249,833
Subtotal Taxes 1 97,186 1 68,367 - - - - 365,553 - 365,553
Other Accounts Receivable:
Health Department 2 05,967 - - - - - 205,967 - 205,967
Retirees Insurance 2 5,934 - - - - - 25,934 - 25,934
Economic Development 2 0,640 - - - - - 20,640 - 20,640
Solid Waste 1 4,687 - - - - - 14,687 - 14,687
Maintenance Charges 1 1,068 - - - - - 11,068 - 11,068
Board of Education 7 ,327 - - - 76,118 - 83,445 - 83,445
Governmental Funds - User Fees - - 18,609 - - - 18,609 - 18,609
Sanitary District - User and Septage Fees - - - - - - - 481,856 481,856
Purchase of Development Rights - - - - - 96,764 96,764 - 96,764
Airport - Fuel Sales and User and Rental Fees - - - - - - - 116,381 116,381
Miscellaneous Receivables 3 3,078 2 ,318 - - 839 28,681 64,916 6,931 71,847
Subtotal Other Accounts Receivable 3 18,701 2,318 18,609 - 76,957 125,445 542,030 605,168 1,147,198
Loans Receivable - - - 359,468 - 3,659,315 4,018,783 - 4,018,783
Subtotal Other Accounts and Loans Receivable 3 18,701 2,318 18,609 3 59,468 76,957 3,784,760 4,560,813 605,168 5,165,981
Special Assessments - - 515,726 - - 727,572 1,243,298 - 1,243,298
Intergovernmental
Income Taxes Held by State 7,378,018 - - - - - 7,378,018 - 7,378,018
Grants Receivable 8 00,306 441,924 - - 100,644 507,671 1,850,545 986,911 2,837,456
State-Shared Highway User Tax - - - - 187,300 - 187,300 - 187,300
Bonds Receivable 1 ,928,431 - - - - - 1,928,431 - 1,928,431
Subtotal Intergovernmental 1 0,106,755 4 41,924 - - 287,944 507,671 11,344,294 986,911 12,331,205
Restricted Receivables
Accounts Receivable - - - - - - - 57,029 57,029
Special Assessments - - - - - - - 3,424,665 3,424,665
Subtotal Restricted Receivables - - - - - - - 3,481,694 3,481,694
Total Receivables $ 1 0,622,642 $ 6 12,609 $ 534,335 $ 359,468 $ 364,901 $5,020,003 $ 17,513,958 $ 5,073,773 $ 22,587,731
Note that receivables from Component Units are not included in the above table.
- 73 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 4 - ACCOUNTS RECEIVABLE (CONTINUED)
The County expects to receive all receivables listed in the table within one year, excluding the following items.
Intergovernmental receivables include bonds receivable from four other counties. In years 1994, 2000, and
2003, Queen Anne’s County sold $1,000,000, $2,815,000, and $710,000, respectively, of its general obligation
bonds for the purpose of providing the local share of capital projects at Chesapeake College. Five counties,
including Queen Anne’s County, provide local support for the College. The other four counties supporting
Chesapeake College have provided their bonds to Queen Anne’s County as evidence of their requirement to
reimburse their portion of the debt service. Bonds are amortized over the 20-year life of each of the original
Queen Anne's County Bonds. The current carrying value for the bonds receivable from the other four counties
are $235,600, $1,325,000, and $367,831, respectively, for a total of $1,928,431. The College bills and collects
from the original five counties an amount sufficient to cover this debt service and reimburses this amount to
Queen Anne’s County on a semi-annual basis.
Loans receivable in the amount of $4,018,783 relate to the Housing, Impact Fees, and Revolving Loan Special
Revenue Funds. Loans receivable in the amount of $3,448,689 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 $126,978 are also repaid over a number of years.
The remaining loan receivable balance of $443,116 relates to school, fire, and parks 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 $7,378,018 have been estimated by the State as income tax
due for “tax years” 2009 and prior. It may take five years or longer for the State to receive all amounts relating to
these “tax years” and remit those monies to the County. However, the State indicates that this is a reasonable
estimate of their liability to the County and the County reports this amount in accordance with GAAP.
Special Assessments in the amount of $1,243,298 represent receivables for governmental activities. Part of this
amount consists of $515,726 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 $727,572 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 $3,424,665 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.
- 74 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 5 – DEFERRED OR UNEARNED REVENUE
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. In addition, governmental funds and
governmental activities defer revenue recognition in connection with resources that have been received,
but unearned. At the end of the current fiscal year, the components of unavailable revenue and unearned
revenue were reported as follows:
Deferred Revenue Unavailable Unearned Total
General Fund
Income Taxes Due from State $ 5,116,295 $ - $ 5,116,295
Property Taxes Receivable 1 06,476 - 106,476
Property Tax Deferrals - 13,277 13,277
Inter-governmental Bonds Receivable 1,928,431 - 1,928,431
Grant Drawdowns in Excess of Expenditures - 5,367 5,367
Subtotal 7,151,202 1 8,644 7,169,846
General Capital Projects Fund
Grant Drawdowns in excess of Expenditures - 69,826 69,826
Roads Capital Projects Fund
Benefit Assessments Receivable Not Currently Due - 515,725 515,725
Benefit Assessments Paid in Advance - 59,968 59,968
Subtotal - 575,693 575,693
School Impact Fees Fund
Impact Fees Loans Receivable Not Currently Due - 359,468 359,468
Roads Board Operating Fund
Inspection Fees Collected In Advance - 610,196 610,196
Non-Major Governmental Funds
Grant Drawdowns in Excess of Expenditures - 1,456 1,456
Benefit Assessments Receivable Not Currently Due - 727,572 727,572
Impact Fees Loans Receivable Not Currently Due - 83,648 83,648
Subtotal - 812,676 812,676
Total Deferred Revenue $ 7,151,202 $ 2 ,446,503 $ 9,597,705
- 75 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 6 – CAPITAL ASSETS
PRIMARY GOVERNMENT
Changes in the County’s capital assets for governmental activities for the year ended June 30, 2010 are
summarized as follows, with depreciation shown separately. Assets resulting from completed capital projects
are shown in the Construction in Progress Transfers column. Asset retirements are show in the Decreases
column.
Construction
Balance in Progress Balance
Governmental Activities June 30, 2009 Increases Transfers Decreases June 30, 2010
Capital Assets, not being depreciated:
Land $ 37,054,054 $ 8 14,823 $ - $ (1,618) $ 37,867,259
Intangible Rights - Easements - - 13,390 - 13,390
Land Improvements 1 ,796,268 - - - 1,796,268
Construction in Progress 1 4,157,439 4 ,777,972 (6,027,382) ( 1,291,800) 11,616,229
Land - Inexhaustible Infrastructure Improvements 4 0,003,406 51,946 - - 40,055,352
Total Capital Assets, not being depreciated 9 3,011,167 5 ,644,741 (6,013,992) ( 1,293,418) 91,348,498
Capital Assets, being depreciated:
Buildings and Building Improvements 2 7,963,214 2 ,574,512 4,529,875 ( 1,601) 35,066,000
Improvements other than Buildings 4 ,927,677 6 ,070 584,297 ( 586) 5,517,458
Vehicles 8,837,732 8 97,127 - (116,795) 9,618,064
Equipment 8,854,727 1 47,623 97,813 ( 370,738) 8,729,425
Furniture and Fixtures 9 ,320,108 1 ,013,767 802,007 ( 495,188) 10,640,694
Infrastructure Improvements - Depreciable 1 5,478,289 12,986 - - 15,491,275
Total Capital Assets, being depreciated 7 5,381,747 4 ,652,085 6,013,992 ( 984,908) 85,062,916
Less Accumulated Depreciation for:
Buildings and Building Improvements 7 ,544,487 6 57,445 - (1,601) 8,200,331
Improvements other than Buildings 7 92,611 1 55,074 - ( 586) 947,099
Vehicles 5,059,671 7 53,377 - ( 76,858) 5,736,190
Equipment 5,573,540 4 92,275 - (256,850) 5,808,965
Furniture and Fixtures 5 ,533,330 1 ,001,587 - (469,019) 6,065,898
Infrastructure Improvements - Depreciable 6 ,280,676 2 48,038 - - 6,528,714
Total Accumulated Depreciation 3 0,784,315 3 ,307,796 - (804,914) 33,287,197
Total Capital Assets, being depreciated, net 4 4,597,432 1 ,344,289 6,013,992 ( 179,994) 51,775,719
Governmental activities Capital Assets, net $ 1 37,608,599 $ 6,989,030 $ - $ (1,473,412) $ 143,124,217
Further information about Capital Assets can be found in the Combining and Individual Fund Statements and
Schedules following the Notes.
- 76 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
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, 2010 are
summarized as follows, with depreciation shown separately. Completed projects that were reclassified from
construction in progress (CIP) to other asset accounts during the year are reported in the same column, as
retirements from CIP and transfers to other asset accounts.
Balance Decreases/ Balance
Business-Type Activities June 30, 2009 Increases Transfers June 30, 2010
Capital Assets, not being depreciated:
Land $ 12,974,006 $ - $ - $ 12,974,006
Land Improvements 16,162 - - 16,162
Construction in Progress 1,475,247 3,724,618 - 5,199,865
Land - Inexhaustible Infrastructure Improvements 1,219,298 - - 1,219,298
Total Capital Assets, not being depreciated 15,684,713 3,724,618 - 19,409,331
Capital Assets, being depreciated:
Buildings and Improvements to Buildings 18,186,494 32,315 - 18,218,809
Improvements other than Buildings 6,407,390 - - 6,407,390
Vehicles 1,196,968 96,926 - 1,293,894
Equipment 21,771,686 124,005 - 21,895,691
Furniture and Fixtures 86,536 1,002 - 87,538
Infrastructure Improvements - Depreciable 68,016,100 208,114 - 68,224,214
Total Capital Assets, being depreciated 115,665,174 4 62,362 - 116,127,536
Less Accumulated Depreciation for:
Buildings and Improvements to Buildings 5,097,348 702,038 - 5,799,386
Improvements other than Buildings 2,018,185 251,574 - 2,269,759
Vehicles 793,615 90,566 - 884,181
Equipment 5,522,637 1,042,572 - 6,565,209
Furniture and Fixtures 61,120 4,590 - 65,710
Infrastructure Improvements - Depreciable 17,956,567 1,635,283 - 19,591,850
Total Accumulated Depreciation 31,449,472 3,726,623 - 35,176,095
Total Capital Assets, being depreciated, net 84,215,702 ( 3,264,261) - 80,951,441
Business-Type activities Capital Assets, net $ 99,900,415 $ 460,357 $ - $ 100,360,772
- 77 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 6 – CAPITAL ASSETS (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities Depreciation
General Government $ 174,502
Public Safety 1,511,104
Public Works 849,365
Health 10,117
Social Services 340,035
Parks and Recreation 346,027
Library 23,611
Conservation of Natural Resources 17,828
Economic/Community Development 35,207
$ 3 ,307,796
Business-Type Activities
Major Enterprise Funds:
Sanitary District $ 3 ,363,886
Airport 171,598
Non-Major Enterprise Funds:
Parks and Recreation $ 183,108
Public Marinas 8,031 191,139
$ 3 ,726,623
- 78 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS
Board of Education: Capital asset activity for the year ended June 30, 2010 is as follows:
Balance Balance
Board of Education June 30, 2009 Increases Decreases June 30, 2010
Capital Assets, not being depreciated:
Land $ 6,363,040 $ - $ - $ 6,363,040
Construction in Progress 18,770,848 2,809,010 (16,929,433) 4,650,425
Total Capital Assets, not being depreciated 25,133,888 2,809,010 (16,929,433) 11,013,465
Capital Assets, being depreciated:
Land Improvements 4,504,001 6 5,848 - 4,569,849
Building Improvements 133,747,668 16,469,641 - 150,217,309
Furniture and Equipment 9,451,423 6 75,280 (474,577) 9,652,126
Total Capital Assets, being depreciated 147,703,092 17,210,769 (474,577) 164,439,284
Less Accumulated Depreciation for:
Land Improvements 2,986,646 1 72,859 - 3,159,505
Building Improvements 28,314,183 2,899,468 - 31,213,651
Furniture and Equipment 6,758,072 4 92,005 (422,836) 6,827,241
Total Accumulated Depreciation 38,058,901 3,564,332 (422,836) 41,200,397
Total Capital Assets, being depreciated, net 109,644,191 13,646,437 (51,741) 123,238,887
Capital Assets, net $ 134,778,079 $ 16,455,447 $ ( 16,981,174) $ 134,252,352
- 79 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS (CONTINUED)
Queen Anne’s County Free Library: Capital asset activity for the year ended June 30, 2010 is as follows:
Balance Balance
Library June 30, 2009 Increases Decreases June 30, 2010
Capital Assets, not being depreciated:
Artwork $ 29,850 $ - $ - $ 2 9,850
Capital Assets, being depreciated:
Books and Media 2 ,305,036 146,309 (165,593) 2,285,752
Building Improvements 2 39,072 - - 2 39,072
Total Capital Assets, being depreciated 2,544,108 146,309 (165,593) 2,524,824
Less Accumulated Depreciation for:
Books and Media 1 ,573,851 98,781 (149,034) 1,523,598
Building Improvements 9 1,155 6,130 - 9 7,285
Total Accumulated Depreciation 1 ,665,006 104,911 (149,034) 1,620,883
Total Capital Assets, being depreciated, net 879,102 41,398 (16,559) 9 03,941
Capital Assets, net $ 9 08,952 $ 41,398 $ (16,559) $ 9 33,791
- 80 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS (CONTINUED)
Queen Anne's County Housing Authority: Capital asset activity for the year ended June 30, 2010 is as
follows
Balance Balance
Housing Authority June 30, 2009 Increases Decreases June 30, 2010
Capital Assets, not being depreciated:
Land $ 735,561 $ 4 9,078 $ - $ 784,639
Land Improvements 1 5,489 1 97,233 - 212,722
Construction in Progress 9 ,272,587 4 52,858 ( 9,371,079) 354,366
Total Capital Assets, not being depreciated 10,023,637 6 99,169 ( 9,371,079) 1,351,727
Capital Assets, being depreciated:
Buildings and Improvements 1 5,354,141 5,637,597 - 2 0,991,738
Vehicles 2 3,490 - - 23,490
Furniture, Fixtures, and Equipment 233,114 - (5,850) 227,264
Infrastructure - 1 41,396 - 141,396
Total Capital Assets, being depreciated 1 5,610,745 5,778,993 (5,850) 2 1,383,888
Less Accumulated Depreciation for:
Buildings and Improvements 2 ,951,327 3 65,567 - 3,316,894
Vehicles 1 7,030 2 ,349 - 19,379
Furniture, Fixtures, and Equipment 121,047 1 2,280 (1,462) 131,865
Infrastructure - 9 43 - 943
Total Accumulated Depreciation 3,089,404 3 81,139 (1,462) 3,469,081
Total Capital Assets, being depreciated, net 1 2,521,341 5,397,854 (4,388) 1 7,914,807
Capital Assets, net $ 22,544,978 $ 6 ,097,023 $ ( 9,375,467) $ 1 9,266,534
- 81 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 7 - INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables are usually used by the County to cover temporary cash deficits in
individual funds until grant or similar resources are received. Occasionally, these receivables and payables
are used in lieu of short-term external borrowing, such as for capital lease agreements.
Intra-entity receivables and payables usually relate to capital construction projects, wherein the primary
government records a liability to its component unit at year-end while the component unit records a payable to
the contractor.
The interfund and intra-entity receivables and payables consist of the following at June 30, 2010:
Due from Fund
Non-Major Sanitary Bay Bridge Non-Major Board of Education- Total Due From
Governmental District Airport Enterprise Component Unit Other Funds
Due to Fund
General $ 4 24,252 $ - $ 5 00,591 $ 9 5,147 $ - $ 1 ,019,990
General Capital Projects 7 0,071 - - - 3 44,546 4 14,617
Sanitary District - 1 52,458 - - - 1 52,458
Non-Major Enterprise - - - 3 0,000 - 3 0,000
Total Due to Other Funds $ 4 94,323 $ 1 52,458 $ 5 00,591 $ 1 25,147 $ 3 44,546 $ 1 ,617,065
On June 30, 2010, the Board of Education issued a check in the amount of $481,000 to the County to
repay a short-term loan related to the Kent Island Elementary School Renovation project. The County
recorded receipt of this check in fiscal year 2011, resulting in a receivable on the County’s financial
statements of $344,546 for fiscal year 2010, which consists of $481,000 for this check, netted with
$136,454 owed to the Board of Education. This timing difference resulted in a reconciling item with the
Board, as the County appropriately recorded this receivable on its books in fiscal year 2010.
Interfund receivables and payables are reported on the Statement of Net Assets as Internal Balances, net of
transactions between the same types of funds. Further information about the interfund and intra-entity
receivables and payables can be found in the Detailed Schedule of Interfund Receivables and Payables
following the Notes.
- 82 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 8 - INTERFUND TRANSFERS
Interfund transfers represent a transfer of resources from one fund to another without expectation of
repayment. Usually, these transfers are undertaken to enable the receiving entity to provide services that the
government has determined to be in the best interest of the County. The following interfund transfers were
made during the fiscal year ended June 30, 2010:
Transfers in Fund
Total General General Roads Roads Non-Major Major Non-Major Total
Transfers Out Fund Capital Projects Capital Board Governmental Enterprise Enterprise Transfers In
Transfers Out Fund
General Fund $ 8 ,219,656 $ - $ 6 64,733 $ - $ 4,663,551 $ 2 ,295,686 $ 1 40,751 $ 4 54,935 $ 8 ,219,656
General Capital Projects 8 ,580,558 8 ,310,000 - - - 2 10,000 6 0,558 - 8 ,580,558
Roads Capital Projects 1 0,000 - 1 0,000 - - - - - 1 0,000
Impact Fees - Schools 1 ,408,120 1 ,408,120 - - - - - - 1 ,408,120
Roads Board 4 44,963 - - 444,963 - - - - 4 44,963
Total Major Governmental Funds 1 8,663,297 9 ,718,120 6 74,733 444,963 4,663,551 2 ,505,686 2 01,309 4 54,935 1 8,663,297
Non-Major Governmental 8 0,945 7 1,168 9 ,777 - - - - - 8 0,945
Sanitary District - Restricted 1 ,574,314 - - - - - 1 ,574,314 - 1 ,574,314
Sanitary District - Debt Service 2 ,084,030 - - - - - 2 ,084,030 - 2 ,084,030
Bay Bridge Airport 1 0,000 1 0,000 - - - - - - 1 0,000
Total Major Enterprise Funds 3 ,668,344 1 0,000 - - - - 3 ,658,344 - 3 ,668,344
Non-Major Enterprise 8 6,913 8 6,913 - - - - - - 8 6,913
Total Transfers Out $ 2 2,499,499 $ 9 ,886,201 $ 6 84,510 $ 444,963 $ 4,663,551 $ 2 ,505,686 $ 3 ,859,653 $ 4 54,935 $ 2 2,499,499
Further information about interfund transfers can be found in the Detailed Schedule of Interfund Transfers
following the Notes.
- 83 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 9 – NONCURRENT LIABILITIES
A. CHANGES IN NONCURRENT LIABILITIES
During the year ended June 30, 2010, 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, 2009 of new debt Repayments June 30, 2010 One Year One Year
General Bonds Payable $ 6 5,420,921 $28,499,154 $ 5 ,060,636 $ 88,859,439 $ 6 ,221,295 $ 8 2,638,144
Notes Payable 9 13,183 800,000 6 1,101 1,652,082 61,436 1,590,646
Bond Premiums, Net of
Issuance Costs 6 51,326 11,916 65,290 5 97,952 65,290 5 32,662
Deferred Refunding Costs (1,660,442) - (170,483) (1,489,959) (170,483) (1,319,476)
Capital Leases 1 55,482 - 49,598 1 05,884 51,795 54,089
6 5,480,470 29,311,070 5,066,142 8 9,725,398 6,229,333 8 3,496,065
Other Post-Employment Benefit Obligation 3 ,688,090 5,464,770 6 04,221 8,548,639 - 8,548,639
Compensated Absences 2 ,243,389 1,746,673 1 ,555,115 2 ,434,947 1,420,167 1 ,014,780
$ 7 1,411,949 $36,522,513 7 ,225,478 $ 100,708,984 $ 7 ,649,500 $ 9 3,059,484
Less College Reimbursements (223,191)
$ 7 ,002,287
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 $ 5 ,060,636
Notes Payable 6 1,101
Capital Leases 4 9,598
LESS: College Reimbursements (223,191)
Total Principal Payments $ 4 ,948,144
The County added amounts to several bond offerings on behalf of Chesapeake College, which cannot borrow
money on its own. This year, the College reimbursed to the County $223,191 for this year’s principal and
interest payments. However, since the County is one of five Counties supporting the College, we paid the
College $53,938 this year for our part of the debt.
- 84 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2010, 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, 2009 of new debt Repayments June 30, 2010 One Year One Year
Golf Course $ 916,075 $ - $ 75,000 $ 841,075 $ 7 5,000 $ 766,075
Airport 539,048 1 69,397 35,318 673,127 4 1,534 631,593
Public Landings - 2 9,936 - 2 9,936 1 ,021 28,915
Public Marinas 5 9,087 3 23,868 8,283 374,672 1 9,395 355,277
Sanitary District 21,684,421 - 1,901,682 19,782,739 1 ,952,376 17,830,363
Subtotal Debt 23,198,631 5 23,201 2,020,283 21,701,549 2 ,089,326 19,612,223
Bond Premiums, Net of
Issuance Costs
Golf Course 2 9,166 - 2,652 2 6,514 2 ,651 23,863
Airport 9 ,150 71 836 8 ,385 836 7 ,549
Public Landings - 13 1 1 2 1 11
Public Marinas - 1 35 6 1 29 6 123
Deferred Refunding Costs
Golf Course ( 64,771) - (5,888) ( 58,883) (5,888) ( 52,995)
Airport ( 20,320) - (1,847) ( 18,473) (1,847) ( 16,626)
Sanitary District ( 68,333) - (20,833) ( 47,500) (20,833) ( 26,667)
Subtotal Bond Premiums, Issuance
and Deferred Refunding Costs ( 115,108) 2 19 (25,073) ( 89,816) (25,074) ( 64,742)
Subtotal Debt before Other Post-Employment
Benefit Obligation and Compensated Absences 23,083,523 5 23,420 1,995,210 21,611,733 2 ,064,252 19,547,481
Other Post-Employment Benefit Obligation 6 15,955 9 46,164 - 1,562,119 - 1 ,562,119
Compensated Absences 2 64,322 2 15,694 183,228 296,788 173,100 123,688
$ 23,963,800 $ 1 ,685,278 $ 2,178,438 $ 23,470,640 $ 2 ,237,352 $ 21,233,288
- 85 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2010, 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, 2009 of new debt Repayments June 30, 2010 One Year One Year
Queen Anne's County
Board of Education
Capital Lease $ 163,696 $ - $ 8 1,490 $ 8 2,206 $ 7 7,646 $ 4,560
Compensated Absences 855,027 276,383 2 05,213 9 26,197 2 00,361 7 25,836
Other Post-Employment Benefit Obligation 4,372,045 5,163,414 - 9 ,535,459 - 9,535,459
Subtotal 5,390,768 5,439,797 2 86,703 1 0,543,862 2 78,007 10,265,855
Free Library
Other Post-Employment Benefit Obligation 139,766 433,800 - 5 73,566 - 5 73,566
Housing Authority
Terrapin Grove Phase II Loan 695,309 - 4 0,995 6 54,314 4 0,908 6 13,406
Scattered Site Housing
Reimbursement to County for
Portion of 2003 Bonds 259,748 - 1 3,301 2 46,447 1 3,917 2 32,530
Repay Loan from County Housing
Revolving Loan Fund 502,224 - - 5 02,224 - 502,224
Reimbursement to County for
Portion of 2009 Bonds - 626,712 - 6 26,712 2 1,383 6 05,329
2009 Bond Premiums - 3 ,470 1 65 3 ,305 1 65 3 ,140
2009 Bond Issuance Costs - (3,208) (152) (3,056) (152) ( 2,904)
Foxxtown Apartments
Reimbursement to County for
Portion of 2006 Bonds 375,562 - 1 4,276 3 61,286 1 4,878 3 46,408
Reimbursement to County for
Portion of 2009 Bonds - 245,932 - 2 45,932 8 ,391 2 37,541
2009 Bond Premiums - 1 ,362 65 1 ,297 65 1 ,232
2009 Bond Issuance Costs - (1,259) (60) (1,199) (60) ( 1,139)
Other Post-Employment Benefit Obligation - 291,066 - 2 91,066 - 291,066
Subtotal 1,832,843 1,164,075 6 8,590 2 ,928,328 9 9,495 2,828,833
$ 7 ,363,377 $ 7,037,672 $ 3 55,293 $ 14,045,756 $ 3 77,502 $ 13,668,254
- 86 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
AND COMPENSATED ABSENCES
PRIMARY GOVERNMENT
All general obligation bonds are valid and legally binding general obligations of Queen Anne’s County and
constitutes an irrevocable pledge of its full faith and credit and unlimited taxing power. Governmental bonds
are payable from ad valorem taxes, unlimited as to rate or amount on all real, tangible, personal, and certain
intangible property subject to taxation at full rate for local purposes in the County.
Business-type bonds, while representing general obligations of the County government, are to be paid from
income earned by the related enterprise fund. Enterprise funds that have such debt are: Water, Sewer, Bay
Bridge Airport, Blue Heron Golf Course, Public Landings, and Public Marinas.
During fiscal year 2009, the County implemented the provisions of Governmental Accounting Standards Board
(GASB) Statement 43, Financial Reporting for Post-Employment Benefit Plans Other than Pension Plans and
GASB 45, Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than
Pensions. For governmental funds, the other post-employment benefit obligations are reported in the
government-wide statements in the function in which that employee usually charges their productive time. For
enterprise funds, these obligations are reported in the enterprise fund in which that employee charges the
majority of their productive time. Additional information can be found in Note 14, Other Post-Employment
Benefits.
Compensated absences that mature during the fiscal year, in that they are paid when the employee takes
vacation leave upon the employee’s termination, are typically liquidated from the governmental or enterprise
fund in which that employee charges the majority of their productive time. They are paid as regular wages.
Compensated absences that do not mature during the fiscal year are accrued at year-end as an adjustment to
liability for compensated absences. For governmental funds, these adjustments are reported in the
government-wide statements in the function in which that employee usually charges their productive time. For
enterprise funds, these adjustments are reported in the enterprise fund in which that employee charges the
majority of their productive time. In the case of grant-funded activities that disallow compensated absences as
an eligible cost, they are paid as administrative wages in the same Fund. Compensated absences in
governmental funds are primarily charged to the General Fund or Special Revenue Funds; they are usually not
charged to Capital Projects Funds.
- 87 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
C. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
As of June 30, 2010, general obligation bonds and notes payable for governmental activities are comprised of
the following, along with other post-employment benefits and accrued compensated absences:
Year Amount Outstanding Due in
Paying Interest Series of Original June 30, Due Within More than
Governmental Activities Fund Rate Matures Issue 2010 One Year One Year
General Obligation Bonds Payable
2002 Refunding Bonds General 3.00%-5.00% 2013 6,310,000 $ 2 ,830,000 $ 880,000 $ 1 ,950,000
2003 Public Facilities General 3.50%-4.50% 2023 1 3,265,000 9 ,758,553 551,083 9,207,470
2005 Refunding Bonds General 3.00%-5.00% 2019 3 0,026,336 2 7,426,336 2,980,000 2 4,446,336
2006 Public Facilities General 4.000%-5.375% 2027 2 2,510,212 2 0,345,396 837,837 1 9,507,559
2009 Public Facilities General 1.400%-5.625% 2030 2 8,499,154 2 8,499,154 972,375 2 7,526,779
Subtotal Bonds Payable 8 8,859,439 6,221,295 8 2,638,144
Notes Payable
2009 CELP Loan General 2.00% 2015 122,780 9 7,890 17,011 80,879
State of Maryland - Price Ck. Spec. Rev. 0.00% 2021 625,000 2 64,000 24,000 240,000
State of Maryland - Grove Ck. Spec. Rev. 0.00% 2034 510,617 4 90,192 20,425 469,767
Sause Property General Capital Projects 6.00% 2013 800,000 8 00,000 - 800,000
Subtotal Notes Payable 1 ,652,082 6 1,436 1 ,590,646
Subtotal Bonds and Notes Payable 9 0,511,521 6,282,731 8 4,228,790
2005 Bond Premiums 6 87,908 76,391 611,517
2005 Bond Issuance Costs ( 101,305) ( 11,668) (89,637)
2005 Deferred Refunding Costs ( 1,489,959) (170,483) (1,319,476)
2006 Bond Premiums 2 04,382 12,023 192,359
2006 Bond Issuance Costs ( 204,382) (12,023) (192,359)
2009 Bond Premiums 1 50,286 7,514 142,772
2009 Bond Issuance Costs ( 138,937) ( 6,947) (131,990)
Total Governmental Activities 8 9,619,514 6,177,538 8 3,441,976
Long-term Obligation under
Capital Lease Agreements General 4.38% 2012 248,460 105,884 51,795 54,089
Other Post-Employment Benefit Obligation 8 ,548,639 - 8,548,639
Accrued Compensated Absences 2 ,434,947 1,420,167 1,014,780
$ 1 00,708,984 $ 7,649,500 $ 9 3,059,484
Details relating to the capital lease obligation can be found in Note 9, Section E – Capital Lease Obligations.
- 88 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION, AND
COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize general obligation bonds and notes payable outstanding as of June 30,
2010 for governmental activities are as follows:
Governmental Activities
Year Ending Governmental Bonds Payable Governmental Notes Payable
June 30, Principal Interest Total Principal Interest Total
2011 $ 6 ,221,295 $ 3 ,768,365 $ 9 ,989,660 $ 61,436 $ 49,873 $ 1 11,309
2012 6,467,432 3 ,548,563 1 0,015,995 61,777 49,531 111,308
2013 6,243,726 3 ,320,528 9 ,564,254 862,127 49,182 911,309
2014 6,524,473 3 ,091,718 9 ,616,191 62,483 827 63,310
2015 6,235,376 2 ,850,939 9 ,086,315 62,845 464 63,309
2016-2020 2 7,304,728 1 0,599,177 3 7,903,905 231,472 93 231,565
2021-2025 1 7,418,793 5 ,341,156 22,759,949 126,125 - 126,125
2026-2030 1 2,443,616 1 ,526,154 13,969,770 102,125 - 102,125
2031-2034 - - - 81,692 - 81,692
$ 8 8,859,439 $ 3 4,046,600 $ 1 22,906,039 $ 1 ,652,082 $ 149,970 $ 1 ,802,052
These repayment schedules exclude bond premiums ($1,042,576), issuance costs (negative $444,624), and
deferred refunding costs (negative $1,489,959).
For the year ended June 30, 2010, total principal, debt issuance costs, and interest incurred by governmental
funds relating to general obligation bonds and notes payable, less College reimbursements, were $4,948,144,
$145,884, and $3,114,505, respectively.
A portion of the County’s 2009 Bond offering was issued using Build America Bonds. As an incentive to use
these bonds, the Federal government offered an interest reimbursement grant, which offsets the County’s
debt service for interest expense. As a result, the County received interest reimbursements of $311,576
during fiscal year 2010, which are reported separately as a specific intergovernmental grant. The net effect of
this reimbursement is shown below.
Net Effect of Federal Build America Bonds Interest Reimbursement on Interest Expense
Interest Expense Interest Net Interest
on 2009 Bonds Reimbursement Expense
Governmental Activities $ 874,167 $ (307,207) $ 566,960
Business-Type Activities
Airport 4 ,679 (1,638) 3,041
Public Landings 3 41 (119) 222
Public Marinas 7 ,463 (2,612) 4,851
Total Business-Type Activities 1 2,483 (4,369) 8,114
Total $ 8 86,650 $ (311,576) $ 575,074
- 89 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION, AND
COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
General obligation bonds and notes payable outstanding as of June 30, 2010 for business-type activities are
comprised of the following, as well as other post-employment benefits and accrued compensated absences:
Year Amount Outstanding Due in
Interest Series of Original June 30, Due Within More than
Business -Type Activities Rate Matures Issue 2010 One Year One Year
Golf Course
2005 Refunding Bonds 3.00%-5.00% 2019 $ 1,076,075 $ 841,075 $ 75,000 $ 766,075
2005 Bond Premiums 30,411 3,041 27,370
2005 Bond Issuance Costs ( 3,897) (390) (3,507)
2005 Deferred Refunding Costs ( 58,883) (5,888) (52,995)
Subtotal Golf Course 808,706 71,763 736,943
Airport
2005 Refunding Bonds 3.00%-5.00% 2019 3 37,588 242,588 25,000 217,588
2006 Public Facilities Bonds 4.000%-5.375% 2027 2 88,928 261,142 10,754 250,388
2009 Public Facilities Bonds 1.400%-5.625% 2030 1 69,397 169,397 5,780 163,617
2005 Bond Premiums 9,541 9 54 8,587
2005 Bond Issuance Costs ( 1,223) (122) (1,101)
2005 Deferred Refunding Costs ( 18,473) (1,847) (16,626)
2006 Bond Premiums 2,623 1 54 2,469
2006 Bond Issuance Costs ( 2,623) (154) (2,469)
2009 Bond Premiums 8 93 4 5 848
2009 Bond Issuance Costs ( 826) (41) (785)
Subtotal Airport 663,039 40,523 622,516
Public Landings
2009 Public Facilities Bonds 1.400%-5.625% 2030 2 9,936 29,936 1,021 28,915
2009 Bond Premiums 1 58 8 150
2009 Bond Issuance Costs ( 146) (7) (139)
Subtotal Public Landings 29,948 1,022 28,926
Public Marinas
2006 Public Facilities Bonds 4.000%-5.375% 2027 4 1,132 37,176 1,531 35,645
2009 Public Facilities Bonds 1.400%-5.625% 2030 3 23,868 323,868 11,050 312,818
State of Maryland - Shore Erosion Loan 0% 2015 1 02,208 13,628 6,814 6,814
2006 Bond Premiums 3 73 2 2 351
2006 Bond Issuance Costs ( 373) (22) (351)
2009 Bond Premiums 1,708 8 5 1,623
2009 Bond Issuance Costs ( 1,579) (79) (1,500)
Subtotal Marinas 374,801 19,401 355,400
Sanitary District
2002 Refunding Bonds 3.00%-5.00% 2013 3,385,000 1,630,000 485,000 1,145,000
Maryland Water Quality-Cloverfields 5.09% 2013 4,282,209 642,331 214,110 428,221
Maryland Water Quality-Digester 4.41% 2013 1,121,377 273,519 87,242 186,277
Maryland Water Quality-Bay City 3.50% 2015 3,476,961 1,195,652 222,967 972,685
Maryland Water Quality-2005 Enhancement 1.00% 2027 18,252,291 1 5,725,774 854,051 14,871,723
State of Maryland 6.10% 2010 5 00,000 35,303 35,303 -
Bank of America 5.60% 2010 2 00,000 9,500 9,500 -
Queenstown Bank-Cloverfields Hookup 8.13% 2015 4 35,000 173,461 31,020 142,441
Queenstown Bank-Bay City Hookup 7.90% 2015 2 05,000 97,199 13,183 84,016
Subtotal Debt 1 9,782,739 1 ,952,376 17,830,363
Prior Issue Deferred Refunding Costs ( 47,500) (20,833) (26,667)
Subtotal Sanitary District 1 9,735,239 1 ,931,543 17,803,696
Total Enterprise Debt before
Other Post-Employment Benefit Obligation and Compensated Absences 2 1,611,733 2 ,064,252 19,547,481
Other Post-Employment Benefit Obligation 1 ,562,119 - 1,562,119
Accrued Compensated Absences 296,788 173,100 123,688
Total Enterprise Funds $ 2 3,470,640 $ 2 ,237,352 $ 21,233,288
- 90 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize business-type bonds and notes outstanding at June 30, 2010, are as
follows:
Business-Type Activities
Year Ending Business-Type Bonds Payable Business-Type Notes Payable
June 30, Principal Interest Total Principal Interest Total
2011 $ 615,135 $ 1 45,241 $ 7 60,376 $ 1 ,474,191 $ 329,038 $ 1 ,803,229
2012 636,404 1 15,892 7 52,296 1 ,453,235 297,422 1 ,750,657
2013 452,602 91,098 5 43,700 1 ,471,183 267,198 1 ,738,381
2014 469,028 70,602 5 39,630 1 ,183,289 219,140 1 ,402,429
2015 145,384 56,828 2 02,212 1 ,195,549 197,010 1 ,392,559
2016-2020 757,810 1 93,073 9 50,883 4 ,598,417 720,796 5 ,319,213
2021-2025 242,224 87,833 3 30,057 4 ,812,308 486,245 5 ,298,553
2026-2030 216,595 27,297 2 43,892 1 ,978,195 126,450 2 ,104,645
$ 3 ,535,182 $ 7 87,864 $ 4,323,046 $ 1 8,166,367 $ 2 ,643,299 $ 2 0,809,666
For the year ended June 30, 2010, total principal and interest of $2,020,283 and $524,803, respectively, was
incurred by business-type activities relating to bonds and notes payable.
- 91 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
C. ISSUANCE OF NEW DEBT
PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES
On October 13, 2009, Queen Anne’s County issued Public Facilities Bonds of 2009 for $29,895,000.
These General Obligations Bonds carry interest rates of 1.400 to 5.625 percent and mature serially through
2029. The primary use of the bond proceeds is to provide funding for construction and renovation of public
school facilities, with minor amounts earmarked for construction of general government, enterprise, and
Public Housing Authority capital projects. Moody’s Investors Service has assigned the rating of A-1 and
Fitch Ratings has assigned a rating of AA to the Queen Anne’s County 2009 Bonds.
On June 15, 2010, Queen Anne’s County entered into a promissory note agreement to borrow $800,000 to
partially fund the acquisition of real property located at 204 North Commerce Street in Centreville,
Maryland. This note carries an interest rate of 6.0 percent, payable semi-annually, with final payment
scheduled for June 2013. The County intends to construct a new courthouse on this property.
D. LEASE OBLIGATIONS
CAPITAL LEASE - PRIMARY GOVERNMENT
Queen Anne’s County entered into a capital lease agreement for two roll-off trucks for the Solid Waste
Department. This lease agreement qualifies as a capital lease and has been recorded at the present value
of future minimum lease payments at the inception of the lease. The lease is a five year note and will
expire in January 2012.
As of June 30, 2010, the assets acquired and placed in service, net of depreciation, are as follows:
Vehicles $ 2 48,460
Less accumulated depreciation (89,031)
Total asset value for capital lease $ 1 59,429
The future minimum lease obligations and the net present value of the minimum lease payments as of
June 30, 2010, are as follows:
Fiscal Year Ending lease
June 30, payments
2011 $ 55,872
2012 55,872
Total future minimum lease payments 111,744
Less amount representing interest ( 5,860)
Net present value of
minimum lease payments $ 105,884
- 92 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
D. LEASE OBLIGATIONS (CONTINUED)
OPERATING LEASE - PRIMARY GOVERNMENT
In October 2009, Queen Anne’s County entered into an operating lease agreement as lessor for ground
space at the Bay Bridge Airport. The Airport leased a parcel of land approximately 9,000 square feet to
CSP Properties, LLC beginning in November 2009 for a term of twenty-five years, ending in fiscal year
2035. Included in the lease agreement is the requirement that the lessee, CSP Properties, LLC, shall
construct an aircraft hangar at its sole expense, subject to certain criteria. At the end of the lease, the
aircraft hangar and any improvements made to it shall become the sole property of the Bay Bridge Airport.
Lease revenues for the year ended June 30, 2010 amounted to $3,450. Future lease revenues are as
follows:
Fiscal Year Ending lease
June 30, payments
2011 $ 5 ,310
2012 5 ,310
2013 5 ,381
2014 5 ,416
2015 5 ,416
2016-2020 2 7,771
2021-2025 2 8,665
2026-2030 2 9,627
2031-2035 2 6,513
Minimum Future Rental Revenue $ 1 39,409
E. LOCAL DEBT POLICY
PRIMARY GOVERNMENT
In August 2009, Queen Anne’s County adopted Resolution No. 09-13, thereby establishing 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 five-year capital project plan each year; (2) propose
an amount to be transferred from the General Fund operating balances to the General Capital Projects Fund
to serve as pay-as-you-go funding in the latter Fund, in order to lessen the need for future County debt; (3)
limit the County’s non-bonded indebtedness to $8.0 million for general operating expenses or capital
improvements; (4) certify that the sum of outstanding general bonded debt and any new general obligation
debt is 2.5% or less of the total taxable assessable base and is $3,000 or less per capita; and (5) review and
revise this Debt Policy as necessary no later than September 1, 2012.
For calculations relating to this local debt policy, see Table 12-b in the Statistical Section of this document,
page 210.
- 93 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 10 – RESTRICTED ASSETS AND LIABILITIES AND RESERVED/DESIGNATED 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, 2010 are as follows:
Sanitary District
Business -Type Activities Restricted Debt Service Total
Current Restricted Assets
Equity in Pooled Cash $ 7,437,899 $ 3,925,026 $ 11,362,925
Accounts Receivable (Net) 1 5,157 41,872 57,029
Subtotal 7,453,056 3,966,898 1 1,419,954
LESS Current Liabilities Payable from Current Restricted Assets
Current Portion of Bonds Payable from Restricted Assets - (50,336) (50,336)
Net Current Restricted Assets 7,453,056 3,916,562 1 1,369,618
Noncurrent Restricted Assets
Special Assessments Receivable (Net) 1 ,392,574 2,032,091 3,424,665
LESS Noncurrent Liabilities Payable from Noncurrent Restricted Assets
Unearned Revenue ( 1,392,574) (1,888,699) (3,281,273)
Net Noncurrent Restricted Assets - 143,392 143,392
Net Restricted Assets $ 7,453,056 $ 4,059,954 $ 11,513,010
- 94 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 10 – RESTRICTED ASSETS AND LIABILITIES AND RESERVED/DESIGNATED FUND
BALANCES (CONTINUED)
B. RESTRICTED NET ASSETS
PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES
Net Assets Invested in Capital Assets, Net of Related Debt, for governmental activities, is calculated as follows:
Governmental Activities
Total Debt excluding Compensated Absences and OPEB Obligation $ ( 89,725,398)
Add back: Debt relating to Board of Education Assets $ 5 7,677,186
Add back: Debt relating to non-capital assets (Dredging) 7 54,192
Add back: Unspent portion of 2009 Bonds 9,871,828
Add back debt unrelated to Capital Assets 6 8,303,206
Net Assets Invested in Capital Assets 143,124,217
Total Capital Assets, net of related debt $ 121,702,025
BUSINESS-TYPE ACTIVITIES
Net Assets Invested in Capital Assets, Net of Related Debt; Restricted; and Unrestricted Net Assets, for
business-type activities, are as follows:
Sanitary District Non-Major Total
Sewer Water Restricted Debt Service Total Bay Bridge Enterprise Enterprise
Business-Type Activities Operating Operating Fund Fund Sanitary Airport Funds Funds
Capital Assets, net of Accumulated Depreciation $ 6 0,698,393 $ 1 6,339,982 $ - $ - $ 77,038,375 $ 1 4,364,340 $ 8,958,057 $ 1 00,360,772
Less: Debt excluding Compensated Absences
and OPEB Obligation 1 7,969,301 1 ,482,604 - - 19,451,905 6 63,039 1,213,455 2 1,328,399
Invested in Capital Assets, Net of Related Debt 4 2,729,092 1 4,857,378 - - 57,586,470 13,701,301 7,744,602 7 9,032,373
Restricted Net Assets
Debt Service - - - 3,670,580 3,670,580 - 1,771 3 ,672,351
Capital Projects - - 753,300 - 7 53,300 - - 7 53,300
Total Restricted Net Assets - - 753,300 3,670,580 4,423,880 - 1,771 4 ,425,651
Total Unrestricted Net Assets 4 ,602,967 2 ,264,911 6 ,699,756 - 13,567,634 ( 80,129) 267,653 1 3,755,158
Total Net Assets $ 4 7,332,059 $ 1 7,122,289 $ 7,453,056 $ 3,670,580 $ 75,577,984 $ 1 3,621,172 $ 8,014,026 $ 9 7,213,182
Sanitary District debt, excluding compensated absences and OPEB obligation of $19,451,905 above, also
excludes $283,334 from the Debt Service Fund, as there are no capital assets related to that debt.
Unrestricted Net Assets total $13,755,158 above for business-type activities. However, these assets
become restricted when included in the Government-Wide Financial Statements found on pages 38 to 39.
The Sanitary District’s Unrestricted Net Assets found in the Restricted Fund of $6,699,756 are restricted in
that these resources can only be used for capital purchases or debt payments; hence, they are reported in
the Restricted Fund. However, the remaining unrestricted net assets noted in the other business-type
funds total $7,055,402 and are restricted when reported in the Government-Wide Financial Statements
because they may be used for business-type operations but not for governmental operations.
- 95 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 10 – RESTRICTED ASSETS AND LIABILITIES AND RESERVED/DESIGNATED FUND
BALANCES (CONTINUED)
C. RESERVED FUND BALANCES
PRIMARY GOVERNMENT
Reserved Fund Balances for governmental funds are as follows:
General Roads Roads Total
General Capital Capital Board Non-Major Governmental
Governmental Funds Fund Projects Projects Operating Governmental Funds
Reserved Fund Balances
Loan Receivables $ - $ - $ - $ - $ 3,575,667 $ 3 ,575,667
Donor-Specified Purposes 2 ,725 38,888 - - 1,050 42,663
Contingencies per County Code-Mandated
7% Reserve 7,055,868 - - - - 7,055,868
Other Legally Restricted Purposes - Unspent Bond Proceeds 9 ,871,828 9,871,828
Other Legally Restricted Purposes - Other 6 68,599 - - 47,925 130,830 847,354
Other Legally Restricted Purposes - Capital Projects - 76,741 820,186 - - 896,927
Subtotal 7 ,727,192 9 ,987,457 820,186 4 7,925 3,707,547 2 2,290,307
Prepaid Items 3 ,500 - - - - 3,500
Inventory 4 ,000 - - 590,266 - 594,266
Subtotal 7 ,500 - - 590,266 - 597,766
Total Reserved Fund Balances $ 7,734,692 $ 9 ,987,457 $ 820,186 $ 638,191 $ 3,707,547 $ 2 2,888,073
- 96 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 11 - RISK MANAGEMENT
The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; and natural disasters. The government carries commercial insurance to
cover such risks. Certain assets of the County such as roads, bridges, and other infrastructure are not
insurable due to their nature.
General Insurance Coverage - The County is a participant in the Local Government Insurance Trust
(LGIT), which is a consortium of Maryland local governments created to provide insurance coverage and
services to Maryland local governments. The LGIT provides general liability, public officials’ liability, fleet
insurance, and building and property insurance to its members.
Workmen’s compensation and fidelity insurance are obtained from various commercial insurance
companies.
Risk Sharing - Subscribers to coverage provided by LGIT share the risk among participants of the pools.
As a result, the County's annual premium requirements will be affected by the loss experience of the
various insurance pools in which it participates. Also, the County may be subject to additional
assessments from time to time. These amounts would be recorded as expenditures when they are
probable and can be reasonably estimated. Conversely, favorable performance of certain insurance pools
may result in reduced premiums.
Health Insurance - Effective with the 1996 fiscal year, the County joined together with other Eastern Shore
county governments, libraries, and Boards of Education to form the Eastern Shore of Maryland Education
Consortium Health Insurance Alliance (ESMEC), a public entity risk pool currently operating as a common
risk management and insurance program for health insurance coverage. CareFirst BlueCross BlueShield,
of Maryland, administers this program.
The agreement for formulation of the alliance provides that the pool will be self-sustaining through member
premiums. In addition to the annual premiums, the pooling agreement provides for additional
assessments, if needed, but not to exceed certain limits. No additional assessments were needed for
fiscal 2010 and, as of the date of this report, it is believed that there are no outstanding claims in excess of
the equity of the trust.
Settlements - For the last three years, settlements have not exceeded insurance coverage for any type of
policy in effect.
- 97 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 12 - RETIREMENT PLANS
Virtually all full and eligible part-time employees of Queen Anne's County, Maryland, and its related
agencies including the Housing Authority, are covered by one of the statewide contributory systems of the
State of Maryland.
PRIMARY GOVERNMENT AND PUBLIC HOUSING AUTHORITY
COST-SHARING MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLANS
Description of Plans
The County participates in the following cost-sharing multiple-employer pension plans that are
administered by the State of Maryland.
The Employees Pension System of the State of Maryland (Pension System) was established January 1,
1980. The Pension System covers employees hired after December 31, 1979, as well as Retirement
System participants who have voluntarily joined the Pension System.
The Employees Contributory Pension System of the State of Maryland (Contributory Pension System) was
established July 1, 1998. As of July 1, 1999, and retroactively to July 1, 1998, the County elected to
participate in the Contributory Pension System for all service earned on or after July 1, 1998.
Effective the first payroll in fiscal year 2007, the County elected to provide its employees with the “Alternate
Contributory Pension Selection Plan of the State of Maryland” (Alternate Contributory Pension System), under
Title 23 of the State Pension Article. This plan is an enhanced version of the two pension systems described
above, and, as such, includes provisions that originate in those plans. Eligible employees not covered by
LEOPS, which is described below, are required to participate in this alternate plan in lieu of other plans
previously offered. At this time, all current employees not covered by LEOPS participate in the Alternate
Contributory Pension System.
The Law Enforcement Officers Pension System (LEOPS) was established July 2, 1990 and adopted by the
County on July 1, 2004. LEOPS currently covers uniformed law enforcement officers of the Sheriff’s
Department.
Under the terms of the Alternate Contributory Pension System, a member may retire after 30 years of
service regardless of age; at age 65 with two years of service; at age 64 with three years of service; at age
63 with four years of service; or at age 62 with at least five years of service. An employee may also take
early retirement with reduced benefits at age 55 with 15 years of service. A member terminating
employment before attaining retirement age, but after completing five years of eligible service, becomes
eligible for a vested pension allowance upon reaching age 62.
Under the terms of the LEOPS, a member may retire with full benefits upon attaining age 50 or after
completing 25 years of eligible service regardless of age. LEOPS members are not eligible for early
service retirement allowances. A member terminating employment before attaining retirement age, but
after completing five years of eligible service, becomes eligible for a vested pension allowance upon
reaching age 50.
- 98 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 12 - RETIREMENT PLANS (CONTINUED)
PRIMARY GOVERNMENT AND PUBLIC HOUSING AUTHORITY (CONTINUED)
On retirement from service, a member of any of these plans shall receive an annual service retirement
allowance based on the member's average final compensation (based on the highest three years’ wages)
and years of creditable service multiplied by a factor. This factor varies from 1.2% to 1.8% for the Alternate
Plan or 2.0% for LEOPS. The factor is applied per eligible service year, depending on employee/employer
contributions and other plan-specific provisions. Early retirement, where available, is subject to provisions
that reduce the benefit received.
Benefits under these plans are established under the State Personnel and Pensions Article of the
Annotated Code of Maryland.
The State Retirement and Pension System of Maryland issues a comprehensive annual financial report
that includes disclosures regarding: actuarial value of assets; total actuarial accrued liability; unfunded
actuarial accrued liability, if any; and funded liability ratio. This report can be obtained from the agency’s
office as follows:
State Retirement and Pension System of Maryland
120 E. Baltimore St, Suite 1601
Baltimore, Maryland 21202-1600
Funding Policy
Obligations to contribute to the plans are established under the Annotated Code of Maryland. Employees who
are members of these two plans contribute a percentage of their gross employee compensation. Members of
the Alternate Contributory Pension System contribute 5 percent and LEOPS members contribute 4 percent.
Required contributions under the plans, which are not funded by employee contributions, are funded entirely
by the County. Contributions by the County to both State plans take place during the fiscal year and are based
upon salaries for the preceding fiscal year. The County contribution for the year ending June 30, 2010 is
based on salaries for the year ending June 30, 2009. The contribution requirements of plan members of the
reporting entity are established and may be amended by the Maryland State Pension System Board of
Trustees. The County’s contributions for the fiscal years ending June 30th were equal to the actuarially
determined amounts as follows:
Fiscal Year Ending
Retirement Plan Contributions June 30, 2010 June 30, 2009 June 30, 2008
Total Payroll $ 27,860,546 $ 2 7,725,213 $ 25,633,969
Covered Payroll
Pension System 21,932,213 2 1,756,765 20,349,987
LEOPS 2 ,743,928 2,646,509 2,156,204
Expenditure/Expense
Pension System 1 ,633,860 1,540,473 1,639,121
LEOPS 6 52,045 490,008 5 36,266
- 99 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 12 - RETIREMENT PLANS (CONTINUED)
OTHER COMPONENT UNITS
Queen Anne’s County Board Of Education
The employees of the Board of Education (other than part-time employees not eligible for participation in
the plans) are covered by one of four defined-benefit retirement plans that are administered by the State
Retirement and Pension System of Maryland. The Board’s share of contributions for teachers and
administration employees is primarily the responsibility of the State. In fiscal year 2010, State contributions
on behalf of the Board are approximately $5,778,261. This contribution is recognized as both revenue and
expenditure for the Board. An additional $707,081 is contributed by the Board of Education for other
covered employees.
Detailed information concerning the Queen Anne's County Board Of Education retirement plan is presented in
their June 30, 2010 financial statements, which are publicly available.
Queen Anne’s County Free Library
The employees of the Library (other than part-time employees not eligible for participation in the plans) are
covered under one of four defined-benefit retirement plans that are administered by the State Retirement
and Pension System of Maryland. The Library’s share of contributions for employees is primarily the
responsibility of the State. In fiscal year 2010, State contributions on behalf of the Library are
approximately $93,730. These contributions are recognized as both revenue and expenditures for the
Library. An additional $41,015 is contributed by the Library for other covered employees.
Detailed information concerning the Queen Anne's County Free Library retirement plan is presented in their
June 30, 2010 financial statements, which are publicly available.
NOTE 13 - DEFERRED COMPENSATION PLAN
The County offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The Plan, available to all County employees, permits them to defer a portion
of their salary until future years. Participation in the plan is optional. The deferred compensation is not
available to employees until termination, retirement, death or unforeseeable emergency.
All amounts of compensation deferred under the plan; all property and rights purchased with those
amounts; and all income attributable to those amounts, property or rights are solely the property and rights
of the participants. The County has no liability for losses under the plan.
Investments are managed by the plan’s administrator based on several different investment options, or
combinations thereof. The choice of the investment option(s) to be used is made by each participant. The
County has no management control over the assets of the plan. Accordingly, per GASB Statement No. 32,
the assets of the plan are not included in these financial statements.
- 100 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS
Other Post-Employment Benefit Trust (OPEB Trust)
On June 23, 2009, the County enacted County Ordinance No. 09-12, which establishes a Trust entity
entitled “Other Post-Employment Benefit Trust – County Commissioners of Queen Anne’s County, County
Commissioners of Kent County, and Participating Agencies” (OPEB Trust). The purpose of the OPEB
Trust is to: (1) fund costs of health insurance and other post-employment benefits to eligible retirees of the
primary government (including the Queen Anne’s County Public Housing Authority), the Queen Anne’s
County Board of Education, and the Queen Anne’s County Free Library; (2) accumulate and invest
financial resources for this purpose; (3) provide health insurance and other post-employment benefits for
eligible retirees; and (4) provide related administrative services.
Other agencies and political subdivisions have the right to participate in this Trust now and in the future.
Such unrelated entities may deposit funds with the Trust for investment purposes related to their OPEB
plans. At June 30, 2010, funds in the amount of $155,393 were reported as a liability of the Trust to Kent
County, Maryland. Kent County is holding these assets for the benefit of their plan participants.
OPEB Trustees have exclusive authority to manage the assets of the Trust. The Board of Trustees consists
of five members: two representing Queen Anne’s County Government; two representing the
Queen Anne’s County Board of Education; and one representing Kent County. In lieu of separate financial
statements for the OPEB Trust, Queen Anne’s County presents the Trust entity’s complete financial
statements within this document.
Plan Description
The County’s Other Post-Employment Benefit Plan (OPEB Plan) is an agent multiple-employer defined
benefit healthcare plan that covers retired employees of the primary government, the Queen Anne’s
County Board of Education, and the Queen Anne’s County Free Library. The Plan was established as
specified in County Ordinance No. 09-12.
Plan descriptions and actuarial assumptions for each participant are described: (1) as follows below for the
primary government and (2) in financial statements issued separately for all other participants, which are
component units of the primary government. Addresses for other participants are noted below in this Note.
- 101 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Plan Description (Continued)
Primary Government
The County’s post-employment plan provides medical insurance benefits to retirees and their eligible
dependents. Depending on the years of County service, the retiree is eligible for a subsidy provided by the
County for a specific portion of the cost of the health insurance. The following table describes the primary
government’s health insurance post-employment benefit plan in effect at this time:
Years of County Service Prior to Retirement and eligible retiree hired
Subsidy Level Description
prior to July 1, 2010
Retiree retired with 15 years of County service Retiree and eligible dependents shall be entitled to receive fifty-four percent
(54%) of selected County health insurance premium costs.
Retiree retired with 16 years of County service but less than 25 years of Retiree and eligible dependents shall be entitled to receive three and six
County Service tenths percent (3.6%) of selected County health insurance premium costs
for every full year of County service.
Retiree with 25 years or more of County Service Retiree and eligible dependents shall be entitled to receive ninety percent
(90%) of selected County health insurance premium costs.
A person in receipt of a special death benefit under the Maryland State Retiree and eligible dependents shall be entitled to receive ninety percent
Retirement/Pension System (90%) of selected County health insurance premium costs.
Retiree retired with less than 15 years of County service Retiree and eligible dependents shall be entitled to remain in the County's
health insurance plan if they pay the full rate to cover all County health
insurance premium costs.
All eligible retirees hired prior to July 1, 2010 Coverage may include the retiree, spouse and dependents. Coverage does
not cease upon death of the retiree.
Years of County Service Prior to Retirement and eligible retiree hired
Subsidy Level Description
on or after July 1, 2010
All eligible retirees hired or rehired on or after July 1, 2010 Retiree shall receive a health insurance subsidy based on the retiree's
years of service as outlined above but shall pay the full additional cost for
coverage of any eligible dependant.
Component Units
The other participating entities provide medical benefits to eligible employees who retire from employment
with each respective agency. Benefits and eligibility requirements vary among the different agencies.
Each agency pays a percentage of the health insurance premium based on certain criteria, including length
of service. In addition to medical benefits, the Board of Education pays the cost of providing term life
insurance for its retirees in varying amounts, depending upon length of service and date of retirement.
For detailed information on plan benefits provided by other participating agencies, as well as actuarial
assumptions used to estimate OPEB obligations, see the agencies’ separately-issued financial statements,
which can be obtained from their administrative offices as listed below:
Board of Education of Queen Anne’s County Queen Anne’s County
Queen Anne’s County Housing Authority Free Library
202 Chesterfield Avenue c/o Queen Anne’s County 121 S. Commerce Street
Centreville, Maryland 21617 Finance Office Centreville, MD 21617
107 N. Liberty Street
Centreville, Maryland 21617
- 102 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Plan Membership
Plan membership as of July 1, 2009, the date of the most recent actuarial valuation, consisted of the
following:
Plan Membership Active Retirees
County and
Housing Authority 477 72
Board of Education 890 247
Library 12 2
Total 1 ,379 321
Basis of Accounting and Financial Statements
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.
For further financial information, Summary and Combining financial statements may be found on pages 56 to
57 and 160 to 161, respectively. Required Supplementary Information may be found after these Notes, on
page 114.
Contributions
Each participating agency has the authority to establish and amend benefit provisions that result in
contribution requirements of the plan members and the agency. The Plans are contributory plans in which the
agencies and their retired members and beneficiaries contribute certain amounts toward the current cost of
the healthcare benefits, based on an actuarial valuation. During fiscal year 2010, as shown in the table below,
plan members and beneficiaries receiving benefits contributed a total of $801,960 (30.9 percent of current
contributions). In addition, the primary government and its component units contributed a total of $1,793,007
(69.1 percent). This entire amount consisted of current premiums, claims, and administrative expenses
incurred on behalf of current retirees; no amounts were contributed toward pre-funding of future benefits
during fiscal year 2010.
Total Retiree Employer
Contributions Retirees Employer Contributions Percentage Percentage
County $ 214,032 $ 5 99,820 $ 813,852 26.3% 73.7%
Housing Authority 3,240 4,401 7,641 42.4% 57.6%
Board of Education 579,788 1,176,586 1,756,374 33.0% 67.0%
Library 4,900 12,200 17,100 28.7% 71.3%
Total $ 801,960 $ 1,793,007 $ 2,594,967 30.9% 69.1%
Net assets held in trust for above entities as of June 30, 2010 consisted of $1,032,614. This amount includes
investment earnings of $2,577.
- 103 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Contributions (Continued)
To avoid reporting a liability for the current year’s contribution, each employer must contribute its annual
required contribution (ARC) each year, which is an amount actuarially determined to be in accordance with the
parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing
basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities over a
period not to exceed 30 years. The annual OPEB cost of $13,276,000, the amounts actually contributed to the
trust of $1,793,007, and the unfunded net OPEB obligation (NOO) of $20,510,849 for the year ended June 30,
2010 were as follows:
Fiscal Year Annual
Ended Required Percentage
Percentage of ARC Contributed June 30 Contribution Contributed
County and Housing Authority 2010 $ 6,702,000 9.02%
Board of Education 2010 6,340,000 18.56%
Library 2010 234,000 5.21%
Total for all Employers $ 13,276,000 13.51%
County and Total
Housing Board of for All
Funding Progress / Net OPEB Obligation Authority Education Library Employers
Beginning of the Year NOO $ 4,304,045 $ 4,372,045 $ 3 51,766 $ 9,027,856
Annual Required Contribution (ARC) 6,702,000 6,340,000 234,000 13,276,000
Employer Contributions (604,221) (1,176,586) (12,200) (1,793,007)
End of the Year NOO $ 10,401,824 $ 9,535,459 $ 573,566 $ 20,510,849
The unfunded Net OPEB Obligation (NOO) at the end of the year for the County and Housing Authority
consisted of liabilities of $10,110,758 for the County ($8,548,639 for Governmental Activities and $1,562,119 for
Business Type Activities) and $291,066 for the Housing Authority.
Note that the Library based their calculations on the actuarial valuation for fiscal year 2011, instead of the
valuation for 2010. Therefore, the information for the Library is one year ahead of schedule. As the
differences were not material, the Library will adjust for the differences in fiscal year 2011 and the financials
will be based on the updated 2011 valuation at the end of that year.
- 104 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Funding Status and Funding Progress
As of July 1, 2009, the date of the most recent actuarial valuation, the total actuarial accrued liability (AAL) for
all plans, as shown below, was $134,286,000. There were a total of $1,032,614 actuarial plan assets at that
time, therefore the unfunded actuarial accrued liability (UAAL) was $133,253,386. The annual covered payroll
of all active employees covered by the respective plans was $53,424,821 and the ratio of the unfunded
actuarial accrued liability to covered payroll was 249.42 percent for the Trust as a whole.
Value of Unfunded UAAL as a
Assets at Accrued Accrued Percentage
Valuation Valuation Liability Liability Funded Covered of Covered
Funding Progress Date Date (AAL) (UAAL) Ratio Payroll Payroll
County and
Housing Authority July 1, 2009 $ 501,269 $ 63,935,000 $ 63,433,731 0.78% $ 2 3,778,696 266.77%
Board of Education July 1, 2009 501,269 67,450,000 66,948,731 0.74% 28,421,068 235.56%
Library July 1, 2010 30,076 2,901,000 2 ,870,924 1.04% 1,225,057 234.35%
Total July 1, 2009 $ 1,032,614 $ 134,286,000 $ 133,253,386 0.77% $ 5 3,424,821 249.42%
The schedule of funding progress, presented as required supplementary information (RSI) on page 114
following the Notes, presents multiyear trend information that shows whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. This
relationship is represented by the funded ratio.
Annual OPEB Cost and Net OPEB Obligation
For fiscal year 2010, the annual required contribution (ARC), or annual OPEB cost, was based on actuarial
valuations as of July 1, 2009, the latest valuation available on the date the County Commissioners and
governing bodies of participating agencies were required to approve their fiscal year 2010 budgets.
However, as previously noted, the Library’s annual required contribution was based on actuarial valuations
as of July 1, 2010 for fiscal year 2011.
As noted in the table below, the total ARC for all plans was $13,276,000 for fiscal year 2010. Actual
funding was $1,793,007, or 13.51 percent of the ARC, resulting in an increase to the Net OPEB Obligation
(NOO) of $11,482,993 for the year.
Annual Increase in
Amortization of Required Net OPEB ARC
Actuarial Unfunded Actuarial Unfunded Normal Contribution ARC Obligation Percentage Based on
Accrued Liablility Accrued Liablility Cost (ARC) Funding (NOO) of ARC Interest
Net OPEB Obligation (1) (2) (3) (2)+(3) (4) (2)+(3)-(4) Contributed Rate
County and
Housing Authority $ 6 3,433,731 $ 2,596,000 $ 4,106,000 $ 6 ,702,000 $ 604,221 $ 6,097,779 9.02% 4.00%
Board of Education 6 6,948,731 2,740,000 3,600,000 6 ,340,000 1,176,586 5,163,414 18.56% 4.00%
Library 2 ,870,924 122,000 112,000 234,000 12,200 221,800 5.21% 4.00%
Total $ 1 33,253,386 $ 5,458,000 $ 7,818,000 $ 1 3,276,000 $ 1,793,007 $ 11,482,993 13.51%
The increase in net OPEB Obligation (NOO) for Queen Anne’s County and the Housing Authority, listed above
in the amount of $6,097,779, consists of $5,806,713 for the Queen Anne’s County portion and $291,066 for
the Housing Authority.
- 105 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Actuarial Methods and Assumptions
The actuarial valuations of the individual plans involve estimates of the value of reported amounts and
assumptions about the probability of events far into the future, such as future employment, mortality, and
healthcare costs. The actuarially determined amounts regarding the funded status of the plans and the
annual required contributions (ARC) of the County and other participating agencies are subject to continual
revision, as actual results are compared to past expectations and new estimates are made about the
future.
Projections of benefits for financial reporting purposes are based on the substantive plan (as understood by the
employer and plan members) and include the types of benefits provided at the time of valuation and the
historical pattern of sharing benefit costs between employers and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce short-term volatility in
actuarial accrued liabilities and the actuarial value of the assets, consistent with the long-term perspective of
the calculations.
Actuarial assumptions used in the actuarial valuation for the County’s plan were:
Actuarial Assumptions for Primary Government
Actuarial valuation date July 1, 2009
Actuarial cost method Projected unit credit
Amortization method Closed
Amortization period 29 years (as of July 1, 2009)
Interest Assumptions 4.00% investment rate of return
Asset valuation method Market value of assets
Salary increases 3% per year
Mortality RP 2000, separate tables for males and
females
Actuarial trend assumptions Based on Society of Actuaries Long Term
Medical Trend and baseline assumptions -
Initial rate of 8% decreasing gradually. The
rate in 2050 is 5.9%.
- 106 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 15 – DEFICIT EQUITY BALANCES
The following Funds ended the year with deficit equity balances:
Bay Bridge Airport Enterprise Fund
The Bay Bridge Airport Enterprise Fund has a deficit balance in unrestricted net assets of $80,129 as of
June 30, 2010.
Parks and Recreation – Golf Course Enterprise Fund
The Golf Course Enterprise Fund has a deficit balance in unrestricted net assets of $155,939 as of June
30, 2010.
Parks and Recreation – Property Management Enterprise Fund
The Property Management Enterprise Fund has a deficit balance in unrestricted net assets of $157,211 as
of June 30, 2010.
Note that these enterprise funds were never intended to be entirely self-supporting. For many years, these
enterprise funds contained deficit equity balances. In fiscal year 2009, the County made a one time transfer
of cash sufficient to cover all negative equity balances. However, in the current year, the County did cover
negative cash amounts with an interfund payable / receivable entry.
NOTE 16 - COMMITMENTS AND CONTINGENCIES
PRIMARY GOVERNMENT
Grants - The County and its component units are recipients of various federal and state grant and/or loan
programs, which are governed by various rules and regulations of the grantor agencies. Costs charged to
the respective grant programs are subject to audit and adjustment by these grantor agencies. If the County
has not complied with the rules and regulations governing the programs, refunds of money received may
be required and the collectability of any related receivable as of June 30, 2010 may be impaired. The
County’s management believes that there are no significant contingent liabilities that must be recorded
relating to compliance with the rules and regulations governing these programs.
Further, certain grants for capital projects, such as various park projects funded by the State, must be used
for the intended purpose of the grant. If, at any time during the useful lives of these projects, the facilities
cease to operate in their intended capacity, the County may be required to reimburse the granting agency
that portion of the grant or note that is equal to the percentage of useful life remaining. The County’s
Management believes that no such grant reimbursements will be needed.
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.
- 107 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 16 - COMMITMENTS AND CONTINGENCIES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
Loan Guarantees - The County Government has agreed to provide a guarantee on a loan to Crossroads
Community, Inc., a non-profit corporation. The original amount of the loan was $294,627; the amount
outstanding as of June 30, 2010 is $177,391.
The County Government has also agreed to provide a guarantee on a loan to Day Care, Inc. The original
amount of this loan was $224,728, of which $32,541 is outstanding as of June 30, 2010.
In fiscal year 2010, the County’s Department of Economic Development, Agriculture and Tourism provided
a loan in the amount of $15,000 to an outside entity. Repayment of the loan is contingent upon certain
employment criteria: if the entity has and maintains at least sixty employees from December 31, 2010
through December 31, 2013, then no repayment of principal or interest is required. Therefore, the County
has recorded these loan distributions as expenditures.
NOTE 17 – JOINT VENTURE
The County Commissioners, in conjunction with Talbot, Caroline, and Kent Counties, created the Midshore
Regional Landfill in 1991. The landfill, currently located in Talbot County, is owned and operated by the
Maryland Environmental Service and is designed to serve the four-county area for a twenty-year period. Given
that this twenty-year period is set to expire in December 2010, the Maryland Environmental Service (MES) has
retained Geosyntec Consultants of Columbia, Maryland as the lead design firm for a new landfill currently
being built in Caroline County. This new state-of-the-art facility, Midshore II, is scheduled to open in 2011.
The Midshore Regional Landfill Joint Venture plans to fund construction of the new Caroline County landfill
with a combination of earnings and bonds to be sold in the future. 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 31.04% financial interest in the Midshore Regional Landfill. In the event that
expenditures exceed revenues, the County is obligated to cover the deficiency in proportion to its financial
interest, however, to date additional funding from the County has not been required nor does management
anticipate it.
As of June 30, 2010, the current landfill located in Talbot County was 97.7% filled. Closure of the landfill is
expected in December 2010, and as of June 30, 2010, total closure and post closure costs were estimated at
approximately $11.5 million, with approximately $3.6 million attributable to the 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 as a long-term liability at June 30, 2010, the majority of these costs, $11.2
million, determined by the estimated useful life of the landfill.
Similar to the post closure costs, each of the participating Counties is contingently liable for the debt related to
the new facility, Midshore II. As of June 30, 2010, the bond anticipation note was $12.0 million, of which $3.7
million is attributable to Queen Anne’s County in the event of a default.
Each County is required to place its municipal waste in the landfill. The facility is also available to commercial
waste disposal firms at the same price per ton as charged to the County governments. Queen Anne's County
paid $477,309 in tipping fees to the facility during fiscal 2010.
- 108 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 17 – JOINT VENTURE (CONTINUED)
MES has satisfied its financial assurance requirements based upon the local government financial ratio tests
of the project participants as of June 30, 2009. MES expects to satisfy these requirements as of June 30,
2010 using the same criteria.
Due to inflation and changes in technology, laws, and regulations, estimated closure and post closure care
costs may change in the future. Financial Statements of the Landfill can be obtained from MES located at 259
Najoles Road, Millersville, MD 21108.
NOTE 18 – POLLUTION REMEDIATION OBLIGATIONS
During fiscal year 2009, the County implemented the provisions of Governmental Accounting Standards
Board (GASB) Statement 49, Accounting and Financial Reporting for Pollution Remediation Obligations.
During a prior fiscal year, 2008, the County agreed to a voluntary Methyl Tertiary Butyl Ether (MTBE) testing
program for underground fuel tanks located at the County’s Department of Public Works’ fuel depot. This
testing program was and still is approved by the Maryland Department of Environment (MDE).
The County implemented the initial phases of this testing program during fiscal years 2008, 2009, and 2010 and
spent $170 thousand, $26 thousand, and $3 thousand, respectively, in each year. 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; and
miscellaneous environmental consulting services.
Consulting services included a feasibility study, which was completed during fiscal year 2009, and the results
of the study were submitted to MDE for review. MDE requested a Corrective Action Plan (CAP) in May 2010.
The County, through a consultant, conducted additional testing and submitted a CAP Work to MDE in July
2010. MDE approved this CAP Work in August 2010. The County is complying with the phases of this CAP
as approved by MDE. Consulting services included installation of additional monitoring wells and one year of
monitoring, sampling, testing and furnishing of those reports to MDE.
Pursuant to the August 2010 MDE approved CAP, the County shall submit a revised Feasibility Study and
CAP in November 2011. Upon receiving approval from MDE, the County shall conduct remediation of the site.
The process and costs of remediation is unknown at this time but may include significant excavation, offsite
controlled disposal, and backfill with clean material and should be concluded before the end of calendar year
2012, or fiscal year 2013.
No liability has been recorded at this time, as specific remediation requirements are not yet known and costs
cannot be reliably estimated. None of these outlays met the requirements for capitalization noted in GASB
Statement 49 and they were not capitalized.
- 109 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 19 – CAPITAL ASSET DONATION
In fiscal year 2009, the Public Housing Authority, one of the County’s component units, completed
construction of a multi-dimensional facility in the Town of Sudlersville, resulting in the creation of several
discrete capital assets. Although the costs to construct this facility were accounted for by the Authority,
funding for one of the resulting buildings, the Sudlersville Senior Center, came largely from revenue
sources, such as federal, state, and local grants, that were outside of the Authority’s normal operations. In
fiscal year 2010, ownership and maintenance of the Sudlersville Senior Center was transferred to the
County. This facility, valued at $2,067,292, is managed by the County’s Department of Aging and is open
to serve the needs of all Queen Anne’s County residents.
NOTE 20 – SUBSEQUENT EVENTS
Promissory Note:
In July 2010, the County entered into a promissory note with Frizz-King Enterprises, LLC in order to purchase
development rights as part of the Agricultural Transfer Program. The terms of the agreement specify a total
purchase price of $1,387,000, of which Queen Anne’s County will contribute $572,000 and the federal Natural
Resource Conservation Service (NRCS) will cover the balance of $815,000 for the rights on the 267.383 acre
Frizz-King property. At the settlement in July 2010, the County paid $207,000 and signed a promissory note
for the balance of $365,000, plus 6% interest. Terms of the note require $33,463 to be paid quarterly
beginning in September 2010 and ending in June 2013. The purchase did not result in an asset as the
Eastern Shore Conservancy, Inc. will own the entire easement right.
Changes in Road Board:
Beginning in fiscal year 2011, reporting for the Roads Board Operating Fund will be consolidated with the
General Fund. In fiscal year 2010 and prior years, the Roads Board was reported as a Special Revenue
Fund, with its major revenue being State-Shared Highway User Tax. However, at the beginning of fiscal year
2010, the State virtually ceased sharing this tax with the Counties. Since the Roads Board revenue stream no
longer meets the criteria required to report the Roads Board as a Special Revenue Fund, it will become part of
the General Fund in fiscal year 2011.
Changes in Homestead Tax Credit:
To help homeowners deal with large assessment increases, Maryland statute has established the Homestead
Property Tax Credit, which limits the increase in taxable assessments each year to a fixed percentage. The
County, along with all other jurisdictions in Maryland, is required to limit taxable assessment increases to 10%
or less each year. This Credit applies only to the principal residence of the property owner; is based on the
dwelling and land associated with the dwelling; and is subject to certain conditions.
For the taxable year beginning July 1, 2011, the County has reduced the Homestead Property Tax Credit from
5% to 0%. Accordingly, the assessable base for such properties on which tax can be levied remains the same
regardless of increases in assessment values. This results in no increase in tax due, as long as the tax rate
remains the same.
- 110 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 20 – SUBSEQUENT EVENTS (CONTINUED)
Changes in Property Tax Rate:
The County’s property tax rate is calculated per $100 of assessed value of real property, based on the full
cash value of that property. The County Commissioners adopt the property tax rate for the following fiscal
year during the annual budget process.
For fiscal year 2011, the County Commissioners adopted a “constant yield” property tax rate, a policy which is
intended to yield property tax revenues in fiscal year 2011 equal to those received in fiscal year 2010. In
calculating a constant yield tax rate for a taxable year, the Maryland Department of Assessments uses an
estimate of the total assessment of all real property for the next taxable year exclusive of real property that
appears for the first time on the assessment records.
The tax rates that were adopted for the last two fiscal years, as well as for the upcoming fiscal year, are as
follows:
Fiscal Years
Adopted Tax Rates 2011 2010 2009
County Property Tax Rate
per $100 of assessed value
of real property $ 0 .7671 $ 0.770 $ 0.770
- 111 -

- 112 -

Required Supplementary Information
- 113 -

QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2010
OTHER POST-EMPLOYMENT BENEFITS TRUST
The following required supplementary information relates to OPEB described in Note 14. This information
is intended to help users assess the system’s funding status on a going-concern basis; assess progress
made in accumulating assets to pay benefits when due; and make comparisons among employers.
SCHEDULE OF FUNDING PROGRESS
The Schedule of Funding Progress presents multiyear trend information that shows whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for
benefits.
Value of Unfunded UAAL as a
Assets at Accrued Accrued Percentage
Valuation Valuation Liability Liability Funded Covered of Covered
Funding Progress Date Date (AAL) (UAAL) Ratio Payroll Payroll
County and
Housing Authority July 1, 2008 $ - $ 49,107,000 $ 49,107,000 0.00% $ 23,690,163 207.29%
July 1, 2009 501,269 63,935,000 6 3,433,731 0.78% 23,778,696 266.77%
Board of Education July 1, 2008 - 62,759,000 6 2,759,000 0.00% 24,267,735 258.61%
July 1, 2009 501,269 67,450,000 66,948,731 0.74% 28,421,068 235.56%
Library July 1, 2008 - 2,010,000 2,010,000 0.00% 1 ,128,084 178.18%
July 1, 2010 30,076 2,901,000 2,870,924 1.04% 1 ,225,057 234.35%
Total July 1, 2008 - 113,876,000 113,876,000 0.00% 49,085,982 231.99%
July 1, 2009 $1,032,614 $134,286,000 $ 133,253,386 0.77% $ 53,424,821 249.42%
Analysis of the dollar amounts of plan net assets, actuarial accrued liability, and unfunded actuarial liability in
isolation can be misleading. Expressing the assets as a percentage of the actuarial accrued liability (Funded
Ratio) provides one indication of the system’s funding status on a going-concern basis. Analysis of this
percentage over time indicates whether the system is becoming financially stronger or weaker. Generally, the
greater this percentage, the stronger the system is becoming. In this fiscal year, the Funded Ratio is 0.77
percent, up from 0.00 percent the year before, which was the year in which GASB 45 was first adopted by the
County.
Trends in the unfunded actuarial accrued liability and annual covered payroll are both affected by inflation.
Expressing the unfunded accrued liability as a percentage of annual covered payroll approximately adjusts for
the effects of inflation and aids analysis of the system’s progress made in accumulating sufficient assets to
pay benefits when due. Generally, the smaller this percentage, the stronger the system is becoming. In this
fiscal year, the UAAL as a percentage of covered payroll is 249.42 percent, up from 231.99 percent the year
before.
Note that the second Library valuation date really relates to the valuation for fiscal year 2011. See Note 14 on
page 101 for additional details.
- 114 -

QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2010
OTHER POST-EMPLOYMENT BENEFITS TRUST (CONTINUED)
SCHEDULE OF PARTICIPATING AGENCIES’ CONTRIBUTIONS
The Schedule of Participating Agencies’ Contributions presents multiyear trend information that shows
whether the actual ARC contributed is increasing or decreasing over time relative to the annual required
contribution (ARC), as shown by the percentage of ARC contributed. Generally, the greater this
percentage, the stronger the system is becoming. In this fiscal year, the Percentage of ARC Contributed is
13.51 percent, down from 22.65 percent the year before.
Annual
Fiscal Required Percentage Net OPEB
Year Ended Contribution ARC of ARC Obligation
Percentage of ARC Contributed June 30 (ARC) Contributed Contributed (NOO)
County and
Housing Authority 2009 $ 5 ,312,000 $ 1,007,955 18.98% $ 4,304,045
2010 6,702,000 604,221 9.02% 6 ,097,779
1 2,014,000 1,612,176 13.42% 10,401,824
Board of Education 2009 5,907,000 1,534,955 25.99% 4 ,372,045
2010 6,340,000 1,176,586 18.56% 5 ,163,414
1 2,247,000 2,711,541 22.14% 9 ,535,459
Library 2009 178,000 38,234 21.48% 139,766
2010 234,000 12,200 5.21% 221,800
412,000 50,434 12.24% 361,566
Totals 2009 1 1,397,000 2,581,144 22.65% 8 ,815,856
2010 1 3,276,000 1,793,007 13.51% 11,482,993
$ 24,673,000 $ 4 ,374,151 17.73% $ 20,298,849
Note that the Net OPEB Obligation (NOO) at the end of the year for the County and Housing Authority
consisted of a total liability of $10,110,758 for the County and $291,066 for the Housing Authority.
Note also that the Library Net OPEB Obligation total of $361,566 above represents the actual amounts booked
for fiscal years 2009 and 2010. In Note 14 on page 104, the total Net OPEB Obligation of $573,566 for the
Library is different due to the fact that the Library based their current year calculations on the valuation for
fiscal year 2011, therefore showing a different beginning balance, which is causing a difference of $212,000
for the Library and for the grand total. In fiscal year 2011, the Library will adjust for the difference and the
financials will be caught up at the end of the year.
- 115 -

QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2010
BUDGETARY COMPARISONS FOR GENERAL AND MAJOR SPECIAL REVENUE FUNDS
Required Supplementary Information provides budget-to-actual comparisons for the General Fund and those
major special revenue funds that adopt annual budgets.
Budget-to-actual variances are presented on the following pages for the General Fund and the Roads Board
Operating Fund, both of which adopt annual budgets.
For the General Fund, the Schedules provide summary budgetary information, followed by detailed
information reported separately by revenues and expenditures with budget variances.
For the Roads Board Operating Fund, the Schedules provide summary budgetary information.
For the School Impact Fees Capital Projects Fund, the budget-to-actual variances are presented in the Capital
Projects section of this report.
Budgets are adopted using the same method of accounting as that used for reporting purposes, i.e. according
to generally accepted accounting principles as used in the United States of America (GAAP).
- 116 -

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, 2010
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ 59,326,899 $ 59,326,899 $ 59,204,132 $ (122,767)
Local Income Tax 36,033,311 29,647,426 29,647,125 (301)
Admission and Amusement Taxes 220,000 220,000 1 56,552 (63,448)
Recordation Taxes 2,929,614 2,929,614 2,489,560 (440,054)
Hotel Taxes 480,000 480,000 3 97,141 (82,859)
Licenses and Permits 748,415 791,131 8 63,782 72,651
Intergovernmental 1,804,408 2,722,916 2,644,990 (77,926)
Bond Interest Reimbursement - Build America Bond - 193,567 1 93,567 -
Charges for Current Services 1,763,560 1,765,969 1,779,401 13,432
Fines and Forfeitures 29,600 189,168 2 07,400 18,232
Investment Income 450,000 450,000 6 2,808 (387,192)
Donations 15,000 15,050 1 0,901 (4,149)
Miscellaneous 76,541 168,355 5 30,574 3 62,219
Total Revenues 103,877,348 98,900,095 98,187,933 (712,162)
EXPENDITURES
Current
General Government 10,193,848 10,402,205 9,715,915 6 86,290
Public Safety 21,249,257 21,750,652 20,331,793 1 ,418,859
Public Works 3,612,299 3,588,697 3,307,461 2 81,236
Health 1,893,554 1,885,574 1,637,101 2 48,473
Social Services 267,981 263,371 2 63,117 254
Education 50,025,906 49,275,906 49,204,590 71,316
Parks and Recreation 2,785,990 2,703,530 2,647,253 56,277
Library 1,458,431 1,424,078 1,424,078 -
Conservation of Natural Resources 590,514 582,534 5 44,016 38,518
Economic/Community Development 1,358,339 1,282,627 1,075,647 2 06,980
Miscellaneous 872,875 1,398,092 1,373,090 25,002
Reversions - (147,151) - (147,151)
Capital Outlay 1,030,371 1,674,253 1,323,057 3 51,196
Debt Service
Principal 4,903,719 4,903,719 4,903,719 -
Interest and Fiscal Charges 2,884,362 3,114,506 3 ,114,505 1
Total Expenditures 103,127,446 104,102,593 100,865,342 3 ,237,251
Excess of Revenues Over Expenditures 749,902 (5,202,498) (2,677,409) 2 ,525,089
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - 9,866 9,866
Insurance Proceeds - 6,665 6,665 -
Transfers In 1,565,431 9,890,429 9,886,201 (4,228)
Transfers Out (6,921,510) (8,613,531) (8,219,656) 3 93,875
Total Other Financing Sources (Uses) (5,356,079) 1,283,563 1,683,076 3 99,513
Net Increase (Decrease) in Fund Balance $ (4,606,177) $ (3,918,935) (994,333) $ 2 ,924,602
Fund Balances, July 1 15,025,443
Fund Balances, June 30 $ 14,031,110
- 117 -

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGETARY BASIS
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2010
VARIANCE
ORIGINAL FINAL ACTUAL POSITIVE
TAXES - LOCAL BUDGET BUDGET REVENUES (NEGATIVE)
Local Property Taxes
Real and Personal Property (Net) $ 57,926,899 $ 57,926,899 $ 57,679,923 $ (246,976)
Railroad and Public Utilities 1,300,000 1,300,000 1,237,004 (62,996)
Penalties and Interest 100,000 100,000 287,205 1 87,205
Total Local Property Taxes 59,326,899 59,326,899 59,204,132 (122,767)
Local Income Tax 36,033,311 29,647,426 29,647,125 (301)
Other Local Taxes
Admission and Amusement Tax 220,000 220,000 156,552 (63,448)
Recordation Tax 2,929,614 2,929,614 2,489,560 (440,054)
Hotel Tax 480,000 480,000 397,141 (82,859)
Total Other Local Taxes 3,629,614 3,629,614 3,043,253 (586,361)
Total Taxes - Local 98,989,824 92,603,939 91,894,510 (709,429)
LICENSES AND PERMITS
Beer, Wine and Liquor 102,000 102,000 108,260 6 ,260
Traders 78,415 78,415 79,683 1 ,268
Marriage Licenses 3,000 3,000 2,915 (85)
Animal Control 33,000 33,000 32,417 (583)
Electrical Board of Examiners 20,000 20,000 19,805 (195)
Electrical Inspections 7,500 7,500 8,210 710
Cable TV 275,000 317,466 317,466 -
Zoning Permits 50,000 50,000 69,480 1 9,480
Plumbing Permits 65,000 65,250 87,739 2 2,489
Sediment Fees 12,000 12,000 29,298 1 7,298
Building Permits 101,500 101,500 106,427 4 ,927
Other 1,000 1,000 2,082 1 ,082
Total Licenses and Permits 748,415 791,131 863,782 7 2,651
INTERGOVERNMENTAL
Police Protection 341,068 341,068 225,490 (115,578)
Fire/Rescue/Ambulance 549,197 549,197 527,519 (21,678)
Conservation of Natural Resources 35,000 35,000 - (35,000)
Bond Interest Reimbursement - Build America Bond - 193,567 193,567 -
Other 879,143 1,797,651 1,891,981 94,330
Total Intergovernmental 1,804,408 2,916,483 2,838,557 (77,926)
CONTINUED
- 118 -

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGETARY BASIS
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2010
(CONTINUED)
VARIANCE
ORIGINAL FINAL ACTUAL POSITIVE
BUDGET BUDGET REVENUES (NEGATIVE)
CHARGES FOR CURRENT SERVICES
Discovery Fees $ - $ - $ 2,179 $ 2,179
Rezoning Filings 1,000 1,000 2,043 1,043
Zoning Appeals 4,500 4,500 7,100 2,600
Development Review 165,000 165,000 186,288 21,288
Sheriff 83,790 85,571 83,102 (2,469)
Ambulance Fee 609,500 609,500 815,835 206,335
Detention Center Fees 300,000 300,000 29,761 (270,239)
Recycling 107,000 107,000 152,746 45,746
Disposal Fees 300,000 300,000 353,215 53,215
Inspection Fees 62,000 62,000 36,808 (25,192)
Recreation Fees 64,970 64,970 58,570 (6,400)
Johnsongrass Spraying 60,000 60,000 45,257 (14,743)
Merchandise Sales 300 928 684 (244)
4-H Park Fees 5,500 5,500 5,763 263
Miscellaneous User Fees - - 50 50
Total Charges for Current Services 1,763,560 1,765,969 1,779,401 13,432
FINES AND FORFEITURES
Court Ordered Restitution - - 82 82
Court Fines 29,600 32,448 55,582 23,134
Tax Sale Deposit Forfeiture - 156,720 151,036 (5,684)
Confiscated Assets - - 700 700
Total Fines and Forfeitures 29,600 189,168 207,400 18,232
INVESTMENT INCOME 450,000 450,000 62,808 (387,192)
MISCELLANEOUS REVENUES AND DONATIONS
Rental Income 20,000 20,000 17,511 (2,489)
Donations 15,000 15,050 10,901 (4,149)
Miscellaneous 56,541 148,355 513,063 364,708
Total Miscellaneous Revenues and Donations 91,541 183,405 541,475 358,070
OTHER FINANCING SOURCES
Insurance Proceeds - 6,665 6,665 -
Proceeds of Capital Asset Disposals - - 9,866 9,866
Transfers In:
Impact Fees - School 1,408,120 1,408,120 1,408,120 -
General Capital Projects - 8,310,000 8,310,000 -
Bay Bridge Airport - 10,000 10,000 -
Parks & Rec - Public Landings - 86,913 86,913 -
Kent Narrows 39,604 39,604 39,604 -
Community Partnerships 25,907 22,542 18,314 (4,228)
Housing 85,800 - - -
Rural Legacy - 7,250 7,250 -
Economic Development Commission 6,000 6,000 6,000 -
Total Transfers In 1,565,431 9,890,429 9,886,201 (4,228)
-
Total Other Financing Sources 1,565,431 9,897,094 9,902,732 5,638
Total General Fund Revenues and Other Financing Sources
Before Appropriated Fund Balance 105,442,779 108,797,189 108,090,665 (706,524)
Fund Balance - Appropriation (Surplus) 4,606,177 3,918,935 - ( 3,918,935)
Total General Fund Revenues, Other Financing Sources
and Fund Balance Appropriation $ 110,048,956 $ 112,716,124 $ 108,090,665 $ ( 4,625,459)
- 119 -

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGETARY BASIS
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2010
ACTUAL VARIANCE
PERSONNEL OTHER CAPITAL ORIGINAL FINAL POSITIVE
COSTS OPERATING OUTLAY TOTAL BUDGET BUDGET (NEGATIVE)
GENERAL GOVERNMENT
Legislative $ 561,156 $ 137,313 $ 6 ,299 $ 704,768 $ 788,640 $ 773,775 $ 69,007
Judicial
Circuit Court/Macro Mediation/Family Services/Court Master 208,095 154,057 - 362,152 489,229 433,771 71,619
Orphan's Court 62,026 5 ,047 - 67,073 7 1,697 67,073 -
State's Attorney/Victim Witness/Cease Fire 1,187,014 4 1,158 - 1,228,172 1,250,808 1,232,717 4,545
Executive
County Administrator 414,454 1 8,250 - 432,704 418,638 433,470 766
Elections
Board of Election Supervisors 15,171 2 94,864 - 310,035 341,335 341,335 31,300
Financial Administration 713,280 1 71,252 - 884,532 752,709 1,024,950 140,418
Human Resources Administration 438,088 107,441 - 545,529 574,793 564,374 18,845
Planning 532,025 1 1,621 - 543,646 631,456 604,236 60,590
Zoning 1,280,120 2 91,073 - 1,571,193 1,754,390 1,719,616 148,423
Management Information Systems 472,026 1 70,535 - 642,561 685,979 672,679 30,118
General Services 629,047 1,333,632 - 1,962,679 2,061,773 2,055,636 92,957
Other General Government
Liquor Board 71,837 5 ,445 - 77,282 8 4,368 81,708 4,426
Electrical Board 2,525 541 - 3,066 1 0,043 10,043 6,977
Legal 56,933 3 29,889 - 386,822 279,000 386,822 -
Total General Government 6,643,797 3,072,118 6,299 9,722,214 10,194,858 1 0,402,205 679,991
PUBLIC SAFETY
Sheriff's Office 5,078,485 7 49,899 1 19,745 5,948,129 6,385,122 6,884,832 936,703
Volunteer Fire and Rescue Services - 3,207,876 - 3,207,876 3,203,561 3,220,561 12,685
Detention Center 3,088,096 8 53,422 2 4,426 3,965,944 4,548,257 4,473,084 507,140
Animal Control 671,911 1 43,292 7,811 823,014 9 06,273 878,581 55,567
Emergency Services 5,582,335 9 56,477 1,076,257 7,615,069 7,235,405 7,828,138 213,069
Total Public Safety 14,420,827 5,910,966 1 ,228,239 2 1,560,032 22,278,618 2 3,285,196 1,725,164
PUBLIC WORKS
Administration 488,325 5 ,890 - 494,215 523,748 510,448 16,233
Other Public Roads 168 1 1,845 - 12,013 4 1,366 40,701 28,688
Solid Waste Disposal 1,166,155 8 65,015 8 8,519 2,119,689 2,219,589 2,382,961 263,272
Engineering Division 718,156 5 1,907 - 770,063 827,596 790,306 20,243
Total Public Works 2,372,804 9 34,657 8 8,519 3,395,980 3,612,299 3,724,416 328,436
HEALTH
Health Department 112,791 1,524,310 - 1,637,101 1,893,554 1,885,574 248,473
SOCIAL SERVICES
MEAP - MD Energy Assistance Program 115,293 - - 115,293 128,002 115,546 253
Other Social Services 130,235 1 7,589 - 147,824 139,979 147,825 1
Total Social Services 245,528 1 7,589 - 263,117 267,981 263,371 254
CONTINUED
- 120 -

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGETARY BASIS
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2010
(CONTINUED)
ACTUAL VARIANCE
PERSONNEL OTHER CAPITAL ORIGINAL FINAL POSITIVE
COSTS OPERATING OUTLAY TOTAL BUDGET BUDGET (NEGATIVE)
EDUCATION
Board of Education $ - $ 4 7,465,625 $ - $ 47,465,625 $ 4 8,215,625 $ 47,465,625 $ -
Chesapeake College - 1,738,965 - 1,738,965 1,810,281 1,810,281 7 1,316
Total Education - 49,204,590 - 4 9,204,590 50,025,906 49,275,906 7 1,316
PARKS AND RECREATION
Parks 1,657,792 408,079 - 2,065,871 2,157,383 2,094,873 2 9,002
Administration 544,115 37,267 - 581,382 628,607 612,647 3 1,265
Total Parks, Recreation, and Culture 2,201,907 445,346 - 2,647,253 2,785,990 2,707,520 6 0,267
LIBRARY
Queen Anne's County Free Library - 1,424,078 - 1,424,078 1,458,431 1,424,078 -
CONSERVATION OF NATURAL RESOURCES
Cooperative Extension Services 46,508 208,710 - 255,218 261,542 258,882 3 ,664
Soil Conservation Services 122,972 - - 122,972 138,225 135,565 1 2,593
Weed Control 79,374 22,760 - 102,134 119,569 116,909 1 4,775
4-H Park - 63,692 - 63,692 71,178 71,178 7 ,486
Total Conservation of Natural Resources 248,854 295,162 - 544,016 590,514 582,534 3 8,518
ECONOMIC AND COMMUNITY DEVELOPMENT
Public Housing Authority - 309,042 - 309,042 287,454 309,042 -
Business & Tourism 564,074 202,531 - 766,605 1,070,885 973,585 206,980
Total Economic and Community Development 5 64,074 511,573 - 1 ,075,647 1,358,339 1 ,282,627 2 06,980
DEBT SERVICE
Debt Service - Principal - 4,903,719 - 4,903,719 4,903,719 4,903,719 -
Debt Service - Interest and Fiscal Charges - 3,114,505 - 3,114,505 2,884,362 3,114,506 1
Total Debt Service - 8,018,224 - 8,018,224 7,788,081 8,018,225 1
MISCELLANEOUS
Aid to Municipalities - 232,023 - 232,023 228,686 232,024 1
Aid to Other Agencies - 51,809 - 51,809 86,809 76,809 2 5,000
Other Allocations - 45,000 - 45,000 45,000 45,000 -
Insurance & Benefits / (Reimbursements) 167,681 792,791 - 960,472 447,100 960,472 -
Contingencies - 83,786 - 83,786 65,280 83,787 1
Total Miscellaneous 167,681 1,205,409 - 1,373,090 872,875 1,398,092 2 5,002
REVERSIONS
Salary Reversions - - - - - (147,151) ( 147,151)
OTHER FINANCING USES
Transfers Out To:
Law Library - 9,953 - 9,953 - 9,953 -
Department of Aging - 1,564,634 - 1,564,634 2,018,128 1,880,578 315,944
Department of Housing and Community Services - 368,639 - 368,639 432,730 370,248 1 ,609
Agricultural Transfer Tax Fund - 10,463 - 10,463 10,463 10,463 -
Roads Board Operating - 4,663,551 - 4,663,551 2,473,421 4,663,551 -
Sanitary District - Sewer/Admin - 4,762 - 4,762 4,125 4,762 -
Sanitary District - Water - 84,782 - 84,782 84,783 84,783 1
Impact Fees - Fire Companies/Contingencies - 84,733 - 84,733 - 84,733 -
General Capital Projects Fund - 664,733 - 664,733 700,000 741,052 7 6,319
Parks & Recreation Enterprise - Airport - 51,207 - 51,207 76,209 51,208 1
Parks & Recreation Enterprise - Golf Course - - - - 193,071 - -
Parks & Recreation Enterprise - Programs - 424,468 - 424,468 439,984 424,468 -
Parks & Recreation Enterprise - Public Landings - - - - 72,238 - -
Parks & Recreation Enterprise - Property Mgmt - 25,000 - 25,000 115,604 25,000 -
Parks & Recreation Enterprise - Marinas - 5,467 - 5,467 - 5,468 1
Community Partnerships (Admin) - 157,264 - 157,264 200,754 157,264 -
Community Partnerships (Education program) - 100,000 - 100,000 100,000 100,000 -
Total Transfers Out - 8,219,656 - 8,219,656 6,921,510 8,613,531 393,875
Total Expenditures and Other Financing Uses $ 26,978,263 $ 8 0,783,678 $ 1,323,057 $ 109,084,998 $ 1 10,048,956 $ 112,716,124 $ 3,631,126
- 121 -

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ROADS BOARD SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2010
VARIANCE
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
State Shared Taxes $ 2,603,479 $ 260,348 $ 4 15,136 $ 154,788
Intergovernmental 15,000 45,924 2 17,787 1 71,863
Charges for Current Services 205,000 205,000 2 04,827 (173)
Investment Income 50,000 50,000 3,967 (46,033)
Miscellaneous 20,000 20,000 1 32,969 1 12,969
Total Revenues 2,893,479 581,272 9 74,686 3 93,414
EXPENDITURES
Current
Public Works 6,010,254 5,992,786 4 ,326,305 1 ,666,481
Capital Outlay 780,000 780,000 - 7 80,000
Total Expenditures 6,790,254 6,772,786 4 ,326,305 2 ,446,481
Excess of Revenues Over (Under) Expenditures (3,896,775) (6,191,514) (3,351,619) 2 ,839,895
OTHER FINANCING SOURCES (USES)
Proceeds of Sale of Capital Assets - - 14,140 1 4,140
Transfers In 3,196,775 5,386,905 4 ,663,551 (723,354)
Transfers Out - ( 444,963) (444,963) -
Total Other Financing Sources (Uses) 3,196,775 4,941,942 4 ,232,728 (709,214)
Net Increase (Decrease) in Fund Balances $ (700,000) $ (1,249,572) 8 81,109 $ 2,130,681
Fund Balances, July 1 3 ,313,452
Fund Balances, June 30 $ 4 ,194,561
- 122 -

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.
- 123 -

- 124 -

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.
- 125 -

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.
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.
Dredging Special Assessments – This fund accounts for activities funded by special
assessment funds collected to repay loans for specific dredging projects that benefited
Price’s Creek and Grove Creek and is included in the conservation of natural resources
function.
Kent Narrows – This fund accounts for activities funded by tax revenues to repay
parking improvement bonds and is included in the economic and community
development function.
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.
- 126 -

Agricultural Transfer Tax – This fund accounts for activities funded primarily by the
Agricultural Transfer Tax to purchase agricultural easements that preclude development
and is included in the conservation of natural resources function.
Rural Legacy – This fund accounts for activities funded primarily by Maryland’s Rural
Legacy Program to purchase easements that preclude development and is included in
the conservation of natural resources function.
Purchase of Developments Rights Fund – This fund accounts for activities funded by
Queen Anne’s County to acquire easements to restrict the use of agricultural land and
woodland and is included in the conservation of natural resources function.
Capital Projects Fund – 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 Fund – 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.
- 127 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2010
COMMUNITY
HOUSING AND PARTNERSHIPS DREDGING
DEPARTMENT COMMUNITY REVOLVING FOR SPECIAL
OF AGING SERVICES LOAN FUND CHILDREN ASSESSMENTS
ASSETS
Cash and Cash Equivalents $ 135,090 $ 730,595 $ 442,737 $ 747,946 $ 15,823
Receivables
Accounts Receivable (Net) 637 172 3,816 1,990 54
Loans Receivable - 3,448,689 126,978 - -
Special Assessments (Net) - - - - 727,572
Due from Other Governments 257,567 28,708 - 221,396 -
Total Assets $ 393,294 $ 4,208,164 $ 573,531 $ 971,332 $ 743,449
LIABILITIES AND FUND BALANCES
Liabilities
Accrued Liabilities $ 72,316 $ 11,456 $ - $ 295,017 $ -
Due to Other Funds 197,779 215,688 - 10,785 -
Due to Other Governmental Agencies 1,868 - - 590,006 -
Deferred Revenue - 1,456 - - 727,572
Total Liabilities 271,963 228,600 - 895,808 727,572
Fund Balances
Reserved
Loans Receivable - 3,448,689 126,978 - -
Donor-Specified Purposes - - - 1,050 -
Other Reserved Purposes - - - - -
Total Reserved - 3,448,689 126,978 1,050 -
Unreserved
Capital Projects Funds - - - - -
Special Revenue Funds 121,331 530,875 446,553 74,474 15,877
Total Unreserved 121,331 530,875 446,553 74,474 15,877
Total Fund Balances 121,331 3,979,564 573,531 75,524 15,877
Total Liabilities and Fund Balances $ 393,294 $ 4,208,164 $ 573,531 $ 971,332 $ 743,449
- 128 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2010
(CONTINUED)
SHERIFF'S
DRUG INMATE
KENT CRITICAL LAW TASK WELFARE
NARROWS AREAS LIBRARY FORCE FUND
$ 184,560 $ 130,830 $ 22,061 $ 201,343 $ 259,836
12,902 - - - 9,110
- - - - -
- - - - -
- - - - -
$ 197,462 $ 130,830 $ 22,061 $ 201,343 $ 268,946
$ 434 $ - $ 31 $ 78,963 $ 11,705
- - - - -
- - - - 8,629
- - - - -
434 - 31 78,963 20,334
- - - - -
- - - - -
- 130,830 - - -
- 130,830 - - -
- - - - -
197,028 - 22,030 122,380 248,612
197,028 - 22,030 122,380 248,612
197,028 130,830 22,030 122,380 248,612
$ 197,462 $ 130,830 $ 22,061 $ 201,343 $ 268,946
CONTINUED
- 129 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2010
(CONTINUED)
CAPITAL
CAPITAL PROJECTS -
PURCHASE OF PROJECTS - PARKS AND TOTAL
AGRICULTURAL RURAL DEVELOPMENT FIRE COMPANY RECREATION NON-MAJOR
TRANSFER LEGACY RIGHTS IMPACT FEES IMPACT FEES GOVERNMENTAL
ASSETS
Cash and Cash Equivalents $ 135,214 $ 1,617,666 $ 658,793 $ 296,879 $ 323,526 $ 5,902,899
Receivables
Accounts Receivable (Net) - - 96,764 - - 125,445
Loans Receivable - - - 41,866 41,782 3,659,315
Special Assessments (Net) - - - - - 727,572
Due from Other Governments - - - - - 507,671
Total Assets $ 135,214 $ 1,617,666 $ 755,557 $ 338,745 $ 365,308 $ 10,922,902
LIABILITIES AND FUND BALANCES
Liabilities
Accrued Liabilities $ 1,028 $ - $ - $ - $ - $ 470,950
Due to Other Funds - - - 70,071 - 494,323
Due to Other Governmental Agencies - - - - - 600,503
Deferred Revenue - - - 41,866 41,782 812,676
Total Liabilities 1,028 - - 111,937 41,782 2,378,452
Fund Balances
Reserved
Loans Receivable - - - - - 3,575,667
Donor-Specified Purposes - - - - - 1,050
Other Reserved Purposes - - - - - 130,830
Total Reserved - - - - - 3,707,547
Unreserved
Capital Projects Funds - - - 226,808 323,526 550,334
Special Revenue Funds 134,186 1,617,666 755,557 - - 4,286,569
Total Unreserved 134,186 1,617,666 755,557 226,808 323,526 4,836,903
Total Fund Balances 134,186 1,617,666 755,557 226,808 323,526 8,544,450
Total Liabilities and Fund Balances $ 135,214 $ 1,617,666 $ 755,557 $ 338,745 $ 365,308 $ 10,922,902
- 130 -

- 131 -

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, 2010
COMMUNITY
HOUSING AND PARTNERSHIPS DREDGING
DEPARTMENT COMMUNITY REVOLVING FOR SPECIAL
OF AGING SERVICES LOAN FUND CHILDREN ASSESSMENTS
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ -
Other Local Taxes - Admission and Amusement Taxes - - - - -
Recordation Taxes - 113,162 - - -
State Shared Taxes - - - - -
Intergovernmental 898,713 429,059 - 1,576,356 -
Charges for Current Services 67,423 - - - 44,314
Fines and Forfeitures - - - - -
Investment Income 145 5,231 3,100 981 389
Donations 47,337 - - 58,884 -
Miscellaneous 892 - 400 26,369 -
Total Revenues 1,014,510 547,452 3,500 1,662,590 44,703
EXPENDITURES
Current
General Government - - - - -
Public Safety - - - - -
Social Services 2,580,095 - - 1,916,052 -
Conservation of Natural Resources - - - - -
Economic/Community Development - 634,844 25,000 - -
Capital Outlay - - - - -
Debt Service
Principal - - - - 44,425
Total Expenditures 2,580,095 634,844 25,000 1,916,052 44,425
Excess of Revenues Over (Under) Expenditures (1,565,585) (87,392) ( 21,500) ( 253,462) 278
OTHER FINANCING SOURCES (USES)
Insurance Proceeds 9,161 - - - -
Transfers In 1,564,634 568,639 10,000 257,264 -
Transfers Out - - - ( 18,314) -
Other Financing Sources (Uses) 1,573,795 568,639 10,000 238,950 -
Net Increase (Decrease) in Fund Balances 8,210 481,247 ( 11,500) ( 14,512) 278
Fund Balances, July 1 113,121 3,498,317 585,031 90,036 15,599
Fund Balances, June 30 $ 121,331 $ 3,979,564 $ 573,531 $ 75,524 $ 15,877
- 132 -

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, 2010
(CONTINUED)
SHERIFF'S
DRUG INMATE
KENT CRITICAL LAW TASK WELFARE
NARROWS AREAS LIBRARY FORCE FUND
$ 38,610 $ - $ - $ - $ -
52,184 - - - -
- - - - -
- - - - -
- - - - -
- 5,687 12,544 - 61,771
- - 17,695 33,842 -
- - 71 396 487
- - - - -
- - 21,932 - 38,997
90,794 5,687 52,242 34,238 101,255
- - 76,258 - -
- - - 50,866 92,642
- - - - -
- - - - -
5,062 - - - -
- - - 27,454 -
- - - - -
5,062 - 76,258 78,320 92,642
85,732 5,687 ( 24,016) ( 44,082) 8,613
- - - - -
- - 9,953 - -
(45,604) - - - -
(45,604) - 9,953 - -
40,128 5,687 ( 14,063) ( 44,082) 8,613
156,900 125,143 36,093 166,462 239,999
$ 197,028 $ 130,830 $ 22,030 $ 122,380 $ 248,612
CONTINUED
- 133 -

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, 2010
(CONTINUED)
CAPITAL
CAPITAL PROJECTS -
PURCHASE OF PROJECTS - PARKS AND TOTAL
AGRICULTURAL RURAL DEVELOPMENT FIRE COMPANY RECREATION NON-MAJOR
TRANSFER LEGACY RIGHTS IMPACT FEES IMPACT FEES GOVERNMENTAL
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ 38,610
Other Local Taxes - Admission and Amusement Taxes - - - - - 52,184
Recordation Taxes - - 7 54,412 - - 8 67,574
State Shared Taxes 93,002 - - - - 93,002
Intergovernmental - 4 ,191,024 - - - 7 ,095,152
Charges for Current Services - - - 1 95,881 117,733 5 05,353
Fines and Forfeitures - - - - - 51,537
Investment Income 2,261 2,774 1,145 1,245 506 18,731
Donations - - - - - 1 06,221
Miscellaneous - - - - - 88,590
Total Revenues 95,263 4 ,193,798 755,557 1 97,126 118,239 8 ,916,954
EXPENDITURES
Current
General Government - - - - - 76,258
Public Safety - - - 827,723 - 9 71,231
Social Services - - - - - 4 ,496,147
Conservation of Natural Resources 1 ,134,894 3 ,572,667 - - - 4 ,707,561
Economic/Community Development - - - - - 664,906
Capital Outlay - - - - - 27,454
Debt Service
Principal - - - - - 44,425
Total Expenditures 1 ,134,894 3 ,572,667 - 8 27,723 - 1 0,987,982
Excess of Revenues Over (Under) Expenditures (1,039,631) 621,131 7 55,557 (630,597) 118,239 (2,071,028)
OTHER FINANCING SOURCES (USES)
Insurance Proceeds - - - - - 9,161
Transfers In 10,463 - - 84,733 - 2 ,505,686
Transfers Out - ( 7,250) - - ( 9,777) ( 80,945)
Other Financing Sources (Uses) 10,463 ( 7,250) - 84,733 ( 9,777) 2 ,433,902
Net Increase (Decrease) in Fund Balances (1,029,168) 613,881 7 55,557 (545,864) 108,462 3 62,874
Fund Balances, July 1 1 ,163,354 1 ,003,785 - 7 72,672 215,064 8 ,181,576
Fund Balances, June 30 $ 1 34,186 $ 1 ,617,666 $ 7 55,557 $ 2 26,808 $ 3 23,526 $ 8 ,544,450
- 134 -

- 135 -

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, 2010
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 $ - $ - $ - $ - $ - $ - $ - $ -
Other Local Taxes - Admission and Amusement Taxes - - - - - - - -
Recordation Taxes - - - - 10,000 1 00,000 1 13,162 13,162
State Shared Taxes - - - - - - - -
Intergovernmental 1 ,066,932 902,512 898,713 ( 3,799) 167,486 8 83,679 4 29,059 ( 454,620)
Charges for Current Services 5 1,900 71,900 67,423 ( 4,477) - - - -
Fines and Forfeitures - - - - - - - -
Investment Income - - 145 145 - 2 ,500 5 ,231 2,731
Donations 5 8,500 58,500 47,337 ( 11,163) - - - -
Miscellaneous 1 ,000 1,000 892 ( 108) - - - -
Total Revenues 1 ,178,332 1,033,912 1,014,510 ( 19,402) 177,486 9 86,179 5 47,452 ( 438,727)
EXPENDITURES
Current Operating Expenditures 3 ,127,610 2,847,640 2,580,095 267,545 610,216 1 ,704,726 6 34,844 1,069,882
Capital Outlay 6 8,850 68,850 - 68,850 - - - -
Debt Service
Principal - - - - - - - -
Total Expenditures 3 ,196,460 2,916,490 2,580,095 336,395 610,216 1 ,704,726 6 34,844 1,069,882
Excess of Revenues Over (Under) Expenditures (2,018,128) ( 1,882,578) (1,565,585) 316,993 ( 432,730) (718,547) (87,392) 631,155
OTHER FINANCING SOURCES (USES)
Insurance Proceeds - - 9,161 9,161 - - - -
Transfers In 2 ,018,128 1,882,578 1,564,634 ( 317,944) 432,730 718,547 5 68,639 ( 149,908)
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) 2 ,018,128 1,882,578 1,573,795 ( 308,783) 432,730 7 18,547 5 68,639 ( 149,908)
Net Increase (Decrease) in Fund Balances $ - $ - 8,210 $ 8,210 $ - $ - 4 81,247 $ 481,247
Fund Balances, July 1 113,121 3 ,498,317
Fund Balances, June 30 $ 121,331 $ 3 ,979,564
- 136 -

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, 2010
(CONTINUED)
COMMUNITY PARTNERSHIPS FOR CHILDREN DREDGING SPECIAL ASSESSMENTS KENT NARROWS
VARIANCE VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ - $ 22,000 $ 22,000 $ 38,610 $ 16,610
- - - - - - - - 48,000 32,104 52,184 20,080
- - - - - - - - - - - -
- - - - - - - - - - - -
1,390,169 1,664,522 1,576,356 (88,166) - - - - - - - -
- - - - 44,425 44,425 44,314 ( 111) - - - -
- - - - - - - - - - - -
- - 981 981 - - 389 389 - - - -
- 56,926 58,884 1,958 - - - - - - - -
- - 26,369 26,369 - - - - - - - -
1,390,169 1,721,448 1,662,590 (58,858) 44,425 44,425 44,703 278 70,000 54,104 90,794 36,690
1,589,166 1,982,000 1,916,052 65,948 - - - - 8,500 8,500 5,062 3,438
3,495 3,495 - 3,495 - - - - - - - -
- - - - 44,425 44,425 44,425 - - - - -
1,592,661 1,985,495 1,916,052 69,443 44,425 44,425 44,425 - 8,500 8,500 5,062 3,438
(202,492) (264,047) ( 253,462) 10,585 - - 278 278 61,500 45,604 85,732 40,128
- - - - - - - - - - - -
269,899 257,264 257,264 - - - - - - - - -
(25,907) (22,542) ( 18,314) 4,228 - - - - (45,604) (45,604) (45,604) -
243,992 234,722 238,950 4,228 - - - - (45,604) (45,604) (45,604) -
$ 41,500 $ (29,325) ( 14,512) $ 14,813 $ - $ - 278 $ 278 $ 15,896 $ - 40,128 $ 40,128
90,036 15,599 156,900
$ 75,524 $ 15,877 $ 197,028
CONTINUED
- 137 -

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, 2010
(CONTINUED)
LAW LIBRARY INMATE WELFARE FUND
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Other Local Taxes - Admission and Amusement Taxes - - - - - - - -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Intergovernmental - - - - - - - -
Charges for Current Services 3,000 12,544 12,544 - 9 0,000 90,000 61,771 (28,229)
Fines and Forfeitures - 17,695 17,695 - - - - -
Investment Income - 71 71 - 5 ,250 5 ,250 487 (4,763)
Donations - - - - - - - -
Miscellaneous - 21,932 21,932 - 4 0,000 40,000 38,997 (1,003)
Total Revenues 3,000 52,242 52,242 - 1 35,250 135,250 101,255 (33,995)
EXPENDITURES
Current Operating Expenditures 1 0,000 76,258 76,258 - 1 15,250 115,250 92,642 2 2,608
Capital Outlay - - - - 2 0,000 20,000 - 2 0,000
Debt Service
Principal - - - - - - - -
Total Expenditures 1 0,000 76,258 76,258 - 1 35,250 135,250 92,642 4 2,608
Excess of Revenues Over (Under) Expenditures (7,000) (24,016) (24,016) - - - 8,613 8 ,613
OTHER FINANCING SOURCES (USES)
Insurance Proceeds - - - - - - - -
Transfers In 7,000 9 ,953 9,953 - - - - -
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) 7,000 9 ,953 9,953 - - - - -
Net Increase (Decrease) in Fund Balances $ - $ (14,063) (14,063) $ - $ - $ - 8,613 $ 8 ,613
Fund Balances, July 1 36,093 239,999
Fund Balances, June 30 $ 22,030 $ 248,612
- 138 -

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, 2010
(CONTINUED)
AGRICULTURAL TRANSFER RURAL LEGACY PURCHASE OF DEVELOPMENT RIGHTS
VARIANCE VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - - - - - -
- - - - - - - - - 4 15,431 7 54,412 3 38,981
155,000 155,000 93,002 (61,998) - - - - - - - -
- - - - - 4,191,024 4 ,191,024 - - - - -
- - - - - - - - - - - -
- - - - - - - - - - 1,145 1 ,145
- 1,226 2,261 1,035 - - 2,774 2,774 - - - -
- - - - - - - - - - - -
- - - - - - - - - - - -
155,000 156,226 95,263 (60,963) - 4,191,024 4 ,193,798 2 ,774 - 4 15,431 7 55,557 3 40,126
165,463 1,134,895 1 ,134,894 1 - 4,271,424 3 ,572,667 6 98,757 - - - -
- - - - - - - - - - - -
- - - - - - - - - - - -
165,463 1,134,895 1 ,134,894 1 - 4,271,424 3 ,572,667 6 98,757 - - - -
(10,463) ( 978,669) (1,039,631) (60,962) - (80,400) 6 21,131 7 01,531 - 4 15,431 7 55,557 3 40,126
- - - - - - - - - - - -
1 0,463 10,463 10,463 - - - - - - - - -
- - - - - - ( 7,250) (7,250) - (415,431) - 4 15,431
1 0,463 10,463 10,463 - - - ( 7,250) (7,250) - (415,431) - 4 15,431
$ - $ ( 968,206) (1,029,168) $ (60,962) $ - $ ( 80,400) 6 13,881 $ 694,281 $ - $ - 7 55,557 $ 755,557
1 ,163,354 1 ,003,785 -
$ 1 34,186 $ 1,617,666 $ 755,557
CONTINUED
- 139 -

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, 2010
(CONTINUED)
CAPITAL PROJECTS - FIRE COMPANY IMPACT FEES CAPITAL PROJECTS - PARKS & RECREATION IMPACT FEES
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Other Local Taxes - Admission and Amusement Taxes - - - - - - - -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Intergovernmental - - - - - - - -
Charges for Current Services 450,000 173,099 195,881 22,782 80,000 85,000 117,733 32,733
Fines and Forfeitures - - - - - - - -
Investment Income 6,000 1,177 1,245 6 8 6,000 6,000 506 (5,494)
Donations - - - - - - - -
Miscellaneous - - - - - - - -
Total Revenues 456,000 174,276 197,126 22,850 86,000 91,000 118,239 27,239
EXPENDITURES
Current Operating Expenditures - 827,723 827,723 - - - - -
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Total Expenditures - 827,723 827,723 - - - - -
Excess of Revenues Over (Under) Expenditures 456,000 (653,447) (630,597) 22,850 86,000 91,000 118,239 27,239
OTHER FINANCING SOURCES (USES)
Insurance Proceeds - - - - - - - -
Transfers In - 84,733 84,733 - - - - -
Transfers Out - - - - - (9,777) (9,777) -
Total Other Financing Sources (Uses) - 84,733 84,733 - - (9,777) (9,777) -
Net Increase (Decrease) in Fund Balances $ 456,000 $ (568,714) (545,864) $ 22,850 $ 86,000 $ 81,223 108,462 $ 27,239
Fund Balances, July 1 772,672 215,064
Fund Balances, June 30 $ 226,808 $ 323,526
- 140 -

CAPITAL PROJECTS FUNDS
Capital Projects Funds are used for the acquisition or construction of major capital facilities, as
well as other large multi-year projects that relate to capital assets, that are financed from general
governmental resources.
We do not amend closed projects in the General Capital Projects Fund or Roads Capital Projects
Fund. The names of these projects begin with a CLS. Once the project is closed, it is considered
null and void and there is no remaining authority, and therefore we do not amend those after the
fact.
Force in kind capital projects do not contain any budget authority. These projects are only
intended as a tracking tool. Most costs associated with force in kind projects are related to staff
costs and the project is attached to the employee’s normal activity, which contains the budget
authority.
General Capital Projects – This fund accounts for capital project activities funded by all
governmental resources, except those reserved for use in the Roads Capital Projects Fund,
noted below.
Roads Capital Projects - This fund accounts for capital project activities funded by governmental
resources specifically reserved for use in the Roads Capital Projects Fund. These resources
consist of State-Shared Highway User Tax, which is mandated for this use, plus federal, state,
and local roads-related grants and transfers.
School Impact Fees Capital Projects - 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.
- 141 -

QUEEN ANNE'S COUNTY MARYLAND
CAPITAL PROJECTS FUNDS
SCHEDULE OF APPROPRIATIONS AND EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2010
EXPENDITURES INCLUDED IN CAPITALIZED
TOTAL PRIOR CURRENT UNEXPENDED CONSTRUCTION CURRENT
PROJ # GENERAL CAPITAL PROJECTS: APPROPRIATION YEARS YEAR TOTAL APPROPRIATIONS IN PROGRESS YEAR
GENERAL GOVERNMENT
400003 County Facilities Program $ 8 00,969 $ 628,840 $ 145,293 $ 774,133 $ 26,836 $ - $ -
400007 GASB/Tax System Update 6 4,000 13,990 - 1 3,990 50,010 - -
400009 Finance System (See Transfers) 7 53,476 702,846 28,563 731,409 22,067 - -
400015 County Wide Mapping 7 35,000 611,715 34,381 646,096 88,904 - 5 ,260
400027 Strategic Planning 5 76,602 386,834 - 386,834 189,768 - -
400029 Comp & Community Plans 6 35,000 417,886 138,935 556,821 78,179 - -
400031 Mgt Info Systems Network 7 52,375 624,828 58,003 682,831 69,544 - 7 ,220
400041 CLS - IT Infrastructure/Phones 2 93,625 243,396 50,229 293,625 - - -
400051 Historic Sites Survey 1 17,000 102,626 6,287 108,913 8,087 - -
400233 Rec Mgmt Sys - Non Fin 2 05,000 119,159 40,502 159,661 45,339 - 6 ,522
400269 Tax Ditches - Beaverdam 6 4,500 43,496 - 4 3,496 21,004 - -
400271 Tax Ditches - Longmarsh 6 4,000 53,140 - 5 3,140 10,860 - -
400363 Church Hill Pond Stabilization 2 00,000 15,132 2,550 1 7,682 182,318 - -
400373 CLS - Beautification Committee 523 523 - 523 - - -
400375 Sustainable Communities Council 5,000 - 1,649 1 ,649 3,351 - -
400377 BNR Septic Retrofit Grant 5,000 - - - 5,000 - -
400425 CLS - Friel Property Management 1 0,010 5,508 - 5 ,508 4,502 - -
400443 Kennard Alumni Association 2 25,000 100,000 125,000 225,000 - - -
400449 Nesbit Road ER Infrastructure 2 ,480,000 184,739 2,263,745 2,448,484 31,516 2,448,484 2,263,745
400457 GIS & Strategic Plan Land Use 6 5,000 16,181 4,640 2 0,821 44,179 - -
400461 Courthouse Basement 2 5,214 8,803 1,980 1 0,783 14,431 10,783 1,980
400483 2009 Bond Issuance - Consultant and Advertising Expense 1 82,863 4,234 153,273 157,507 25,356 - -
400489 Price Community Center 4 5,000 - 45,000 4 5,000 - - -
400527 CLS - Sudlersville Parking - Foxxtown 3 0,000 29,196 1,500 3 0,696 (696) - -
400557 Security Upgrade & Generator 1 70,000 - - - 170,000 - -
400561 Courthouse Property Acquisition 1 ,314,231 - 1,314,231 1,314,231 - - 1,314,231
Total General Government 9 ,819,388 4,313,072 4,415,761 8,728,833 1,090,555 2,459,267 3,598,958
PUBLIC SAFETY
400217 Transfer to VFDs 1 ,392,282 1,084,689 - 1,084,689 307,593 - -
400281 Detention Center Furniture & Carpet 3 0,000 - - - 30,000 - -
400283 CLS - Detention Center Building Expansion 2 ,668,329 2,381,230 28,118 2,409,348 258,981 - 2 8,118
400313 County Wide Mapping - 911 8 15,530 781,263 13,206 794,469 21,061 - -
400343 CLS - DES Records Management Software 1 87,511 187,511 - 187,511 - - -
400455 CLS - DES Radio Tower Software 1 59,831 89,831 70,000 159,831 - - 7 0,000
400497 CLS - Sudlersville Firehouse Renovation 2 8,345 - 28,345 2 8,345 - - -
400499 Railroad Avenue Building Renovation 5 00,000 - 21,464 2 1,464 478,536 21,464 2 1,464
400525 Animal Services - Quarantine Facility 93,478 - 54,590 5 4,590 38,888 54,590 5 4,590
400535 DES Hanger Doors 4 5,000 - - - 45,000 - -
Total Public Safety 5 ,920,306 4,524,524 215,723 4,740,247 1,180,059 76,054 1 74,172
PUBLIC WORKS
400077 Wetlands Mitigation 2 16,560 142,998 - 142,998 73,562 - -
400079 Roof Repair / Replacement 4 54,647 427,786 24,800 452,586 2,061 - -
400081 CLS - Centreville MCF 7 19,274 548,420 170,854 719,274 - - 1 70,854
400083 Renovation/Transit Garage (See Transfers) 4 ,776,629 4,651,422 79,917 4,731,339 45,290 4 ,731,339 7 9,917
400087 Fuel Depot Demolition/MTBE 1 95,594 195,593 3,181 198,774 (3,180) 198,774 3 ,181
400091 DPW - Fee In Lieu 20,000 20,000 - 2 0,000 - - -
400235 Solid Waste Capital Equipment 1 74,001 173,039 - 173,039 962 - -
400241 Cash Deposit Agreements 3 5,748 35,748 - 3 5,748 - - -
400287 CLS - DPW Records Management System 2,659 2,391 267 2 ,658 1 - -
400471 Bio-Swale Drainage Ditch 7 5,000 233 7,530 7 ,763 67,237 7,763 7,530
400501 DPW Yard MTBE Remediation 1 00,000 - - - 100,000 - -
400509 Solid Waste Loader Replacement 6 3,626 - - - 63,626 - -
400521 County Complex Land 1 92,750 - 7,735 7 ,735 185,015 7,735 7,735
400541 Sudlersville Middle Infrastructure 2 ,255,393 - 216,384 216,384 2,039,009 203,865 2 03,865
Total Public Works 9 ,281,881 6,197,630 510,668 6,708,298 2,573,583 5,149,476 4 73,082
CONTINUED
- 142 -

QUEEN ANNE'S COUNTY MARYLAND
CAPITAL PROJECTS FUNDS
SCHEDULE OF APPROPRIATIONS AND EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2010
(CONTINUED)
EXPENDITURES INCLUDED IN CAPITALIZED
TOTAL PRIOR CURRENT UNEXPENDED CONSTRUCTION CURRENT
PROJ # GENERAL CAPITAL PROJECTS: APPROPRIATION YEARS YEAR TOTAL APPROPRIATIONS IN PROGRESS YEAR
SOCIAL SERVICES
400099 CLS - Kramer Center Improvement $ 5 9,270 $ 57,991 $ 1,278 $ 59,269 $ 1 $ - $ 1 ,278
400243 Aging - Large Transit Vehicles 1 ,010,395 589,747 - 589,747 420,648 - -
400437 CLS - Dept of Aging Cap Equipment 6 6,473 59,471 7,002 6 6,473 - - -
400487 MTA Capital Grant Equipment 2 00,250 16,258 180,388 196,646 3,604 - 1 80,007
400511 Aging - Vehicle Replacement 3 5,000 - - - 35,000 - -
400531 Kramer Center Rain Garden 1 5,000 - 1,000 1 ,000 14,000 - -
400601 ARRA Capital Grant Equipment 4 28,939 - 428,939 428,939 - - 4 28,939
Total Social Services 1 ,815,327 723,467 618,607 1,342,074 473,253 - 6 10,224
EDUCATION
700003 Chesapeake College Admin Bldg 7 98,485 783,364 15,121 798,485 - - -
700055 CLS - Ches College Center - Renovations 4 07,167 402,101 - 402,101 5,066 - -
700171 Ches Coll Kent Humanities Bldg 6 85,295 45,110 579,085 624,195 61,100 - -
700219 Ches Coll Learning Resource Center 1 08,188 54,863 53,325 108,188 - - -
Subtotal Chesapeake College 1 ,999,135 1,285,438 647,531 1,932,969 66,166 - -
EDUCATION - CONTINUED
ALLOCATIONS TO COMPONENT UNIT -
BOARD OF EDUCATION
400543 Sudlersville Middle Infrastructure 6,307 - 6,307 6 ,307 - - -
700007 CLS - Centreville Elementary Renovation 5 ,484,990 5,448,028 36,962 5,484,990 - - -
700019 CLS - Queen Anne's County High 13,244,475 13,082,808 161,667 13,244,475 - - -
700061 Matapeake Middle 16,909,456 16,820,742 10,162 16,830,904 78,552 - -
700089 Kent Island Elementary Renovation 12,198,780 10,141,378 116,347 10,257,725 1,941,055 - -
700105 CLS - BOE Computer Equipment 3 56,460 349,864 6,597 356,461 (1) - -
700107 Schools - Carpet & Tile 2 70,000 240,513 - 240,513 29,487 - -
700111 BOE Office Building Upgrade 1 50,595 7,100 - 7 ,100 143,495 - -
700113 Schools - Painting 2 80,000 182,406 76,931 259,337 20,663 - -
700115 Playfields - Church Hill & Kent Island Elementary 2 4,544 24,544 - 2 4,544 - - -
700117 Playground Repairs - Kent Island Elem School 1 40,660 39,234 65,443 104,677 35,983 - -
700137 CLS - Stevensville Middle PA System 8,778 - 8,778 8 ,778 - - -
700141 Acoustical Tiles 4 0,000 14,800 14,000 2 8,800 11,200 - -
700151 Bayside Elementary HVAC 1 ,064,153 37,625 1,001,335 1,038,960 25,193 - -
700157 QACHS Field Upgrades 5 19,532 208,160 159,116 367,276 152,256 - -
700159 CLS - QACHS Stadium Press 5 0,000 6,385 43,500 4 9,885 115 - -
700161 Financial Hardware System 6 0,000 - 50,501 5 0,501 9,499 - -
700165 Generator - BOE Bldg 5 0,000 - 1,275 1 ,275 48,725 - -
700167 Electronic Visitor Register 2 0,000 - 20,000 2 0,000 - - -
700169 New Sudlersville Middle School 27,370,330 2,205,061 462,766 2,667,827 24,702,503 - -
700173 CLS - Church Hill Elementary Playground 7 04,558 174,936 34 174,970 529,588 - -
700177 BOE Security Entrance & Cameras 1 60,000 15,149 66,689 8 1,838 78,162 - -
700179 Centreville Middle Boiler 2 37,917 195 20,857 2 1,052 216,865 - -
700181 Bayside Elementary Parking Lot 1 50,000 - - - 150,000 - -
700183 Centreville Elementary - Resurface Playcourts 3 5,000 - 3,100 3 ,100 31,900 - -
700187 Kennard Elementary Addition 1 50,000 - 102,519 102,519 47,481 - -
700189 BOE - Slate Roof Repairs 1 05,000 - 6,291 6 ,291 98,709 - -
700191 Carpet & Tile Replacement 8 0,000 - 62,791 6 2,791 17,209 - -
700193 Security Entrance & Cameras 6 5,000 - 62,132 6 2,132 2,868 - -
700195 Equipment & Vehicles 7 00,000 - 661,564 661,564 38,436 - -
700197 CLS - KIHS Bleachers 2 0,000 - 20,000 2 0,000 - - -
700199 CLS - QACHS Stage Curtain 7,005 - 7,005 7 ,005 - - -
700201 KIHS Stage Curtain 1 5,000 - 10,550 1 0,550 4,450 - -
700203 Textbooks 3 00,000 - 279,937 279,937 20,063 - -
700205 BOE Phone System 1 40,000 - - - 140,000 - -
700207 QACHS Bleachers 1 75,000 - 308 308 174,692 - -
700209 Energy Management System Upgrade 2 9,000 - 21,895 2 1,895 7,105 - -
700211 BOE Meeting Room Video System 3 0,000 - 840 8 40 29,160 - -
700213 BOE Relocatables 2 18,000 - 118,310 118,310 99,690 - -
700215 KIHS Roof Repairs 6 5,700 - 6,967 6 ,967 58,733 - -
Subtotal Board of Education 81,636,240 48,998,928 3,693,476 52,692,404 28,943,836 - -
Total Education 83,635,375 50,284,366 4,341,007 54,625,373 29,010,002 - -
CONTINUED
- 143 -

QUEEN ANNE'S COUNTY MARYLAND
CAPITAL PROJECTS FUNDS
SCHEDULE OF APPROPRIATIONS AND EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2010
(CONTINUED)
EXPENDITURES INCLUDED IN CAPITALIZED
TOTAL PRIOR CURRENT UNEXPENDED CONSTRUCTION CURRENT
PROJ # GENERAL CAPITAL PROJECTS: APPROPRIATION YEARS YEAR TOTAL APPROPRIATIONS IN PROGRESS YEAR
PARKS AND RECREATION
400111 CLS - Land Undesignated $ 1 26,610 $ 126,186 $ 6,425 $ 132,611 $ (6,001) $ - $ -
400123 CLS - Matapeake Park Clubhouse (See Transfers) 8 53,430 803,107 36,580 839,687 13,743 - 3 6,580
400141 CLS - Ewing Pond Park 1 64,777 62,525 102,251 164,776 1 - 1 02,251
400155 CLS - Park Survey 4 4,343 41,592 2,750 4 4,342 1 - -
400215 Preventive Park Maintenance 6 70,480 494,449 175,434 669,883 597 - 7 ,400
400247 CLS - Dog Park 3 5,230 36,960 (1,730) 3 5,230 - - (1,730)
400303 Ferry Point Trail 2 05,570 5,040 151,589 156,629 48,941 156,629 1 51,589
400305 White Marsh Park 2 ,279,552 1,528,300 622,045 2,150,345 129,207 2,150,345 6 22,045
400391 Cross County Connec Trail PS1 6 0,825 36,892 23,931 6 0,823 2 60,823 2 3,931
400393 Davidson Property Improvements 9 00,000 8,086 25,961 3 4,047 865,953 34,047 2 5,961
400399 CLS - Exploration Center Canal Bridge 6 0,000 8,045 51,955 6 0,000 - - 5 1,955
400439 CLS - Wells Cove Landing 2 02,073 192,227 9,845 202,072 1 - 9,845
400459 Ferry Point/CEC Canal Bridge 1 46,350 - 144,303 144,303 2,047 144,303 1 44,303
400477 CLS - Cross Is & Kent Is Trail Amenities 2 0,000 - 20,000 2 0,000 - - -
400479 CLS - KI South Trail Maintenance Equipment 3 3,000 29,805 3,061 3 2,866 134 - -
400513 Bay City/Matapeake Trail 3 0,000 - - - 30,000 - -
400515 CLS - Bloomfield Farm/Ag Development 3 6,667 - 36,667 3 6,667 - - -
400517 CLS - Corsica River Improvements 1 00,000 - 101,526 101,526 (1,526) - -
400519 Talisman/Kudner Improvements 6,855 - - - 6,855 - -
400523 CLS - Bloomfield Farmhouse Renovation - - 198 198 (198) - -
400529 Chesapeake Pool Improvements 1 00,000 - 69,421 6 9,421 30,579 - -
Total Parks and Recreation 6 ,075,762 3,373,214 1,582,212 4,955,426 1,120,336 2,546,147 1,174,130
CONSERVATION
400293 4-H Park Improvements 5 97,555 407,762 54,988 462,750 134,805 462,750 5 4,988
400505 CLS - 501 C3 Ag Preservation 1 2,000 - 12,000 1 2,000 - - -
400553 Ag Preservation - Emerson Property 2 08,431 - - - 208,431 - -
400555 Ag Preservation - Frizz King Property 2 07,000 - - - 207,000 - -
Total Conservation 1 ,024,986 407,762 66,988 474,750 550,236 462,750 5 4,988
ECONOMIC/COMMUNITY DEVELOPMENT
400201 Land Sales Proceeds (See Transfers) 3 0,345 30,345 - 3 0,345 - - -
400573 Housing - NCI - 107 Watkins 2 30,159 - 198,882 198,882 31,277 198,882 1 98,882
Subtotal Economic/Community Development 2 60,504 30,345 198,882 229,227 31,277 198,882 1 98,882
ECONOMIC/COMMUNITY DEVELOPMENT -
ALLOCATION TO COMPONENT UNIT - PHA
400207 Housing & Community Service Transfer (See Transfers) 1 00,000 100,000 - 100,000 - - -
400209 PHA Allocation 6 06,643 600,000 6,642 606,642 1 - -
400463 CLS - Sudlersville Alley - Foxxtown 6 6,730 47,222 19,508 6 6,730 - - 1 9,508
400485 Restricted Allocation-Scattered Site 1 00,000 - 100,000 100,000 - - -
Subtotal Allocation to Component Unit - PHA 8 73,373 747,222 126,150 873,372 1 - 1 9,508
Total Economic/Community Development 1 ,133,877 777,567 325,032 1,102,599 31,278 198,882 2 18,390
CONTINUED
- 144 -

QUEEN ANNE'S COUNTY MARYLAND
CAPITAL PROJECTS FUNDS
SCHEDULE OF APPROPRIATIONS AND EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2010
(CONTINUED)
EXPENDITURES INCLUDED IN CAPITALIZED
TOTAL PRIOR CURRENT UNEXPENDED CONSTRUCTION CURRENT
PROJ # GENERAL CAPITAL PROJECTS: APPROPRIATION YEARS YEAR TOTAL APPROPRIATIONS IN PROGRESS YEAR
DEBT SERVICE
400483 2009 Bond Issuance Costs $ 1,116,874 $ - $ 145,884 $ 145,884 $ 970,990 $ - $ -
Total Debt Service 1 ,116,874 - 145,884 145,884 970,990 - -
TRANSFERS TO OTHER FUNDS
400009 Finance System - to Sanitary District 1,719 1,719 - 1 ,719 - - -
400045 Land Preservation Transfers 4 05,000 405,000 - 405,000 - - -
400083 Renovation/Transit Garage - to Roads Cap Proj 4 8,300 48,300 - 4 8,300 - - -
400123 CLS - Matapeake Park Clubhouse 8 5,191 85,191 - 8 5,191 - - -
400127 Public Landings Allocation 2 00,000 200,000 - 200,000 - - -
400167 Enterprise Transfer/Allocation 3 ,336,695 3,175,932 60,558 3,236,490 100,205 - -
400201 Land Sale Proceeds 1 25,000 115,000 10,000 125,000 - - -
400207 Housing & Comm Svc Transfer - to Housing Services 4 50,000 350,000 100,000 450,000 - - -
400213 Loan Fund Transfers 4 60,000 360,000 100,000 460,000 - - -
400217 Transfer to VFD's 1 62,410 162,410 - 162,410 - - -
400551 Transfer to/from General Fund 8 ,310,000 - 8,310,000 8,310,000 - - -
400469 Sanitary District Transfer/Allocation 2 33,000 233,000 - 233,000 - - -
Total Transfers 13,817,315 5,136,552 8,580,558 13,717,110 100,205 - -
Total General Capital Projects $ 133,641,091 $ 75,738,154 $ 20,802,440 $ 96,540,594 $ 37,100,497 $ 1 0,892,576 $ 6,303,944
PROJ # ROADS BOARD CAPITAL PROJECTS:
PUBLIC WORKS
820005 Asphalt Overlays - Upgrade $ 2,753,091 $ 986,282 $ - $ 986,282 $ 1,766,809 $ - $ -
820151 Island Creek Road Bridge 1 ,105,000 31,838 39,423 7 1,261 1,033,739 71,261 3 9,423
820221 Taylor Mill Road Bridge 1 97,500 450 - 450 197,050 450 -
820251 Traffic Barrier Installation - - 947 947 (947) 947 947
820271 Tanyard Road Improvements - - 350 350 (350) 350 350
820291 Carmichael Road Improvements - - 6,094 6 ,094 (6,094) 6,094 6 ,094
820295 Fogwell Road Improvements 5 3,215 - - - 53,215 - -
820297 Rt 18-552 Improvements 1 ,541,798 - 167,472 167,472 1,374,326 167,472 1 67,472
Total Public Works - Roads 5 ,650,604 1,018,570 214,286 1,232,856 4,417,748 246,574 $ 214,286
TRANSFERS TO OTHER FUNDS
820187 To Roads Operating 1 ,841,877 1,019,487 - 1,019,487 822,390 - -
820209 County Wide Mapping II 7 0,000 60,000 10,000 7 0,000 - - -
Total Transfers to Other Funds 1 ,911,877 1,079,487 10,000 1,089,487 822,390 - -
Total Roads Board Capital Projects $ 7,562,481 $ 2,098,057 $ 224,286 $ 2,322,343 $ 5,240,138 $ 246,574 $ 214,286
Total General and Roads Capital Projects $ 141,203,572 $ 77,836,211 $ 21,026,726 $ 98,862,937 $ 42,340,635 $ 1 1,139,150 $ 6,518,230
Force in Kind Capital Projects reported in $ -
non-capital projects Funds and added to CIP
400124 CLS - Matapeake Clubhouse FIC $ - $ 76,101 $ 3,783 $ 79,884 $ (79,884) $ - $ 3 ,783
400142 CLS - Ewing Pond Park FIC - 16,250 105 1 6,355 (16,355) - 105
400250 CLS - Centreville Trail - FIC - 3,251 - 3 ,251 (3,251) - -
400304 Ferry Point Project FIC - 13,763 397 1 4,160 (14,160) 5,400 397
400306 White March Park FIC - 253,066 117,551 370,617 (370,617) 370,617 1 17,551
400392 Cross County Conn II FIC - 7,199 8,467 1 5,666 (15,666) 13,744 8 ,467
400394 Davidson Property FIC - 2,652 5,696 8 ,348 (8,348) 8,348 5 ,696
400400 CLS - Exploration Center Bridge FIC - 38,103 1,782 3 9,885 (39,885) - 1 ,782
400460 Ferry Point/CEC Canal Bridge - - 62,756 6 2,756 (62,756) 62,756 6 2,756
400472 Bio Swale Drainage Ditch - FIC - 9,163 7,051 1 6,214 (16,214) 16,214 7 ,051
400478 CLS - Cross Is & Kent Is Trail Amenities - FIC 4,000 - 18,035 1 8,035 (14,035) - -
400480 CLS - Kent Is South Trail Maintenance Equipment - FIC 6,000 - 5,110 5 ,110 890 - -
$ 1 0,000 $ 419,548 $ 230,733 $ 650,281 $ (640,281) $ 477,079 $ 207,588
Total Construction in Progress and Capitalized Current Year $ 1 1,616,229 $ 6,725,818
- 145 -

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
SCHOOL IMPACT FEES CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2010
VARIANCE
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Charges for Current Services $ 6 00,000 $ 852,200 $ 852,201 $ 1
Investment Income 20,000 3,497 3,497 -
Total Revenues 6 20,000 855,697 855,698 1
EXPENDITURES
Total Expenditures - - - -
Excess of Revenues Over (Under) Expenditures 6 20,000 855,697 855,698 1
OTHER FINANCING (USES)
Transfers Out (1,408,120) ( 1,408,120) (1,408,120) -
Total Other Financing (Uses) (1,408,120) ( 1,408,120) (1,408,120) -
Net (Decrease) in Fund Balances $ (788,120) $ ( 552,423) (552,422) $ 1
Fund Balances, July 1 1,621,088
Fund Balances, June 30 $ 1,068,666
- 146 -

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; and (3) to the extent that funds are not borrowed, finance the cost of
expansion of physical facilities. For Queen Anne’s County, the following enterprise funds are not
meant to be fully self-supporting.
- 147 -

NON-MAJOR ENTERPRISE FUNDS
Non-major enterprise funds include all of the following funds:
Public Marinas – This fund accounts for operation, maintenance, and major repairs of
public marinas. For a fee, the general public has access to these marinas for temporary
mooring.
Parks and Recreation:
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.
Recreation Programs – This fund accounts for self-supporting recreation programs
wherein user charges cover the majority of operating expenditures.
Public Landings – This fund accounts for operation, maintenance, and major repairs of
public landings and bulkheads. For a fee, the general public has access to these
landings to launch small craft into the many waterways that surround the County.
Property Management – This fund accounts for the operation, maintenance and major
repairs associated with the County’s many parks and public facilities.
- 149 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2010
GOLF RECREATION PUBLIC
ASSETS COURSE PROGRAMS LANDINGS
Current Assets
Equity in Pooled Cash $ - $ 355,248 $ 96,082
Accounts Receivable (Net) - - 480
Due from Other Funds - 30,000 -
Due from Other Governments - - 110,931
Bond Interest Reimbursement Receivable - Build America Bond - - 119
Inventories 6,423 - -
Prepaid Expenses - 4,950 -
Total Current Assets 6,423 390,198 207,612
Capital Assets
Land, Improved and Unimproved 1,904,522 - 559,862
Buildings and Improvements to Buildings 297,946 - -
Improvements Other Than Buildings 122,268 - 1,894,110
Automotive Equipment 22,835 - 10,880
Equipment 583,046 - 56,814
Furniture and Fixtures - 24,023 4,979
Construction in Progress - - 513,104
Capital Assets before Depreciation 2,930,617 24,023 3,039,749
Less Accumulated Depreciation (556,951) (13,130) (248,709)
Total Capital Assets, Net of Accumulated
Depreciation 2,373,666 10,893 2,791,040
Total Noncurrent Assets 2,373,666 10,893 2,791,040
Total Assets 2,380,089 401,091 2,998,652
LIABILITIES
Current Liabilities
Accounts Payable 26,787 32,073 15,274
Accrued Interest Payable 5,809 - 341
Escrow Deposits - 4,258 -
Due to Other Funds 125,147 - -
Unearned Revenue 2,524 5,275 904
Current Portion of Compensated Absences 189 - 19,238
Current Portion of Bonds/Notes Payable 71,763 - 1,022
Total Current Liabilities 232,219 41,606 36,779
Noncurrent Liabilities
Compensated Absences 135 - 13,746
Other Post-Employment Benefit Obligation - 90,309 49,525
Bonds/Notes Payable 736,943 - 28,926
Total Noncurrent Liabilities 737,078 90,309 92,197
Total Liabilities 969,297 131,915 128,976
NET ASSETS
Invested in Capital Assets, Net of Related Debt 1,564,960 10,893 2,761,092
Restricted for:
Donations 1,771 - -
Unrestricted (155,939) 258,283 108,584
Total Net Assets $ 1,410,792 $ 269,176 $ 2,869,676
- 150 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2010
(CONTINUED)
TOTAL TOTAL
PROPERTY PARKS AND PUBLIC NON-MAJOR
MANAGEMENT RECREATION MARINAS ENTERPRISE
$ 8,726 $ 460,056 $ 54,252 $ 514,308
2,024 2,504 - 2,504
- 30,000 - 30,000
- 110,931 343,973 454,904
- 119 1,291 1,410
- 6,423 - 6,423
- 4,950 6,738 11,688
10,750 614,983 406,254 1,021,237
49,335 2,513,719 209,248 2,722,967
2,362,024 2,659,970 - 2,659,970
99,013 2,115,391 401,542 2,516,933
49,730 83,445 - 83,445
156,461 796,321 - 796,321
1,748 30,750 - 30,750
- 513,104 1,049,349 1,562,453
2,718,311 8,712,700 1,660,139 10,372,839
(529,978) ( 1,348,768) (66,014) ( 1,414,782)
2,188,333 7,363,932 1,594,125 8,958,057
2,188,333 7,363,932 1,594,125 8,958,057
2,199,083 7,978,915 2,000,379 9,979,294
24,885 99,019 186,085 285,104
- 6,150 4,417 10,567
6,650 10,908 - 10,908
- 125,147 - 125,147
- 8,703 - 8,703
- 19,427 - 19,427
- 72,785 19,401 92,186
31,535 342,139 209,903 552,042
- 13,881 - 13,881
136,426 276,260 1,816 278,076
- 765,869 355,400 1,121,269
136,426 1,056,010 357,216 1,413,226
167,961 1,398,149 567,119 1,965,268
2,188,333 6,525,278 1,219,324 7,744,602
- 1,771 - 1,771
(157,211) 53,717 213,936 267,653
$ 2,031,122 $ 6,580,766 $ 1,433,260 $ 8,014,026
- 151 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
GOLF RECREATION PUBLIC
COURSE PROGRAMS LANDINGS
OPERATING REVENUES
Charges for Services $ 317,629 $ 425,798 $ 326,112
Intergovernmental - 6,072 25,483
Bond Interest Reimbursement - Build America Bond - - 119
Material Sales 5 0,497 - -
Miscellaneous Revenues 2 ,405 18,232 34,750
Total Operating Revenues 3 70,531 450,102 386,464
OPERATING EXPENSES
Cost of Sales and Services
Parks and Recreation 4 10,851 860,392 353,959
Public Marinas - - -
Total Cost of Sales and Services 4 10,851 860,392 353,959
Other Post-Employment Benefit Contributions - 82,730 29,450
Depreciation 4 5,350 2,402 45,129
Total Operating Expenses 4 56,201 945,524 428,538
Operating Income (Loss) (85,670) (495,422) (42,074)
NON-OPERATING REVENUES (EXPENSES)
Interest Expense (42,484) - (341)
Gain (Loss) Before Contributions and Transfers (128,154) (495,422) (42,415)
Capital Contributions, Fees and Grants 400 - 289,495
Transfers In - 424,468 -
Transfers (Out) - - (86,913)
Net Transfers In (Out) - 424,468 (86,913)
Change in Net Assets (127,754) (70,954) 160,167
Total Net Assets - Beginning of Year 1,538,546 340,130 2,709,509
Total Net Assets - End of Year $ 1,410,792 $ 269,176 $ 2,869,676
- 152 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
(CONTINUED)
TOTAL TOTAL
PROPERTY PARKS AND PUBLIC NON-MAJOR
MANAGEMENT RECREATION MARINAS ENTERPRISE
$ 563,664 $ 1,633,203 $ 62,600 $ 1,695,803
10,164 41,719 26,405 68,124
- 119 2,612 2,731
24,014 74,511 - 74,511
35,367 90,754 979 91,733
633,209 1,840,306 92,596 1,932,902
739,082 2,364,284 - 2,364,284
- - 77,919 77,919
739,082 2,364,284 77,919 2,442,203
87,504 199,684 1,816 201,500
90,227 183,108 8,031 191,139
916,813 2,747,076 87,766 2,834,842
(283,604) (906,770) 4,830 (901,940)
- (42,825) (8,973) (51,798)
(283,604) (949,595) (4,143) (953,738)
- 289,895 545,123 835,018
25,000 449,468 5,467 454,935
- (86,913) - (86,913)
25,000 362,555 5,467 368,022
(258,604) (297,145) 546,447 249,302
2,289,726 6,877,911 886,813 7,764,724
$ 2,031,122 $ 6,580,766 $ 1,433,260 $ 8,014,026
- 153 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
GOLF RECREATION PUBLIC
COURSE PROGRAMS LANDINGS
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 318,901 $ 481,761 $ 326,536
Receipts from other operating revenues 52,902 24,304 25,506
Receipts from Build America Bond interest reimbursement - - -
Payments to suppliers ( 326,249) ( 355,963) (124,668)
Increase in accounts payable - - -
Payments to employees and on behalf of employees ( 64,376) ( 505,973) (281,864)
Net Cash Provided (Used) by Operating Activities ( 18,822) ( 355,871) (54,490)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds - 424,468 -
Loan proceeds from interfund loans 125,147 10,000 -
Transfers to other funds - - (86,913)
Principal paid on interfund loans ( 40,000) - -
Net Cash Provided (Used) by Noncapital Financing Activities 85,147 434,468 (86,913)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Receipts from capital grants and contributions 400 - 289,495
Principal paid on capital debt ( 75,000) - -
Receipts from 2009 Bonds - - 29,949
Interest paid on capital debt ( 39,765) - -
Acquisition and Construction of Capital Assets - - (414,070)
Net Cash (Used) by Capital and Related Financing Activities ( 114,365) - (94,626)
CASH FLOWS FROM INVESTING ACTIVITIES
Net Cash Provided (Used) by Investing Activities - - -
Net increase (decrease) in cash and cash equivalents ( 48,040) 78,597 (236,029)
Balances - Beginning of year 48,040 276,651 332,111
Balances - End of year $ - $ 355,248 $ 96,082
Reconciliation of operating income (loss) to net cash
provided by operating activities
Operating income (loss) $ ( 85,670) $ ( 495,422) $ (42,074)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation 45,350 2,402 45,129
Changes in assets and liabilities:
Accounts receivable, net - 52,334 (480)
Operating grants receivable - - (34,727)
Build America Bonds Interest receivable - - (119)
Inventories and Prepaid Expenses 2,009 5,000 -
Vendor accounts payable 18,486 ( 5,886) (53,413)
Compensated absences ( 269) ( 658) 839
Other Post-Employment Benefit Obligation - 82,730 29,451
Escrow deposits payable - 154 -
Deferred revenue collected in advance 1,272 3,475 904
Net Cash Provided (Used) by Operating Activities $ ( 18,822) $ ( 355,871) $ (54,490)
- 154 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
(CONTINUED)
TOTAL TOTAL
PROPERTY PARKS AND PUBLIC NON-MAJOR
MANAGEMENT RECREATION MARINAS ENTERPRISE
$ 582,498 $ 1,709,696 $ 62,600 $ 1,772,296
74,545 177,257 27,384 204,641
- - 1,321 1,321
(252,388) (1,059,268) (66,490) (1,125,758)
- - 184,844 184,844
(481,067) (1,333,280) (18,167) (1,351,447)
(76,412) (505,595) 191,492 (314,103)
25,000 449,468 5,467 454,935
- 135,147 - 135,147
- (86,913) - (86,913)
- (40,000) (507) (40,507)
25,000 457,702 4,960 462,662
- 289,895 201,150 491,045
- (75,000) (8,283) (83,283)
- 29,949 324,003 353,952
- (39,765) (5,319) (45,084)
- (414,070) (944,541) (1,358,611)
- (208,991) (432,990) (641,981)
- - - -
(51,412) (256,884) (236,538) (493,422)
60,138 716,940 290,790 1,007,730
$ 8,726 $ 460,056 $ 54,252 $ 514,308
$ (283,604) $ (906,770) $ 4,830 $ (901,940)
90,227 183,108 8,031 191,139
30,834 82,688 - 82,688
5,000 (29,727) - (29,727)
- (119) (1,291) (1,410)
- 7,009 (6,738) 271
5,627 (35,186) 184,844 149,658
- (88) - (88)
87,504 199,685 1,816 201,501
- 154 - 154
(12,000) (6,349) - (6,349)
$ (76,412) $ (505,595) $ 191,492 $ (314,103)
- 155 -

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

FIDUCIARY FUNDS
Fiduciary funds account for assets held for others, in a trustee or agency capacity, which cannot
be used to support other government programs.
Pension and Other Employee Benefit Trust Funds account for resources that are required to be
held in trust for the members and beneficiaries of defined benefit pension plans, defined
contribution plans, other post-employment benefit plans, or other employee benefit plans. The
County’s one Other Post-Employment Benefit (OPEB) Trust Fund accounts for retiree benefit
plans and is reported as part of the Basic Financial Statements. Additional combining schedules
for the OPEB Trust Fund are included in this section.
Agency Funds account for assets held by the County on behalf of individuals, private
organizations, or other governments and/or funds. Additional combining schedules for the
County’s Agency Funds are included in this section.
- 157 -

Steamed crabs fresh from the local rivers and the Chesapeake Bay!

OTHER POST-EMPLOYMENT BENEFIT (OPEB) TRUST FUND
The County established a Trust entity, entitled “Other Post-Employment Benefit Trust –
County Commissioners of Queen Anne's County, County Commissioners of Kent
County, and Participating Agencies” (OPEB Trust), to accumulate resources and
account for and report retiree benefit plans for the participating agencies.
Participating agencies in the OPEB Trust Fund are as follows:
Queen Anne's County & Public Housing Authority
Queen Anne's County Board of Education
Queen Anne’s County Library
Kent County
AGENCY FUNDS
Agency funds are as follows:
Tax Ditch – This fund accounts for special taxing district revenues that are used to
maintain drainage ditches located in parts of the County.
Zoning Deposits – This fund accounts for performance deposits required under various
sections of the Zoning Ordinance.
State and Town Tax Collections – This fund accounts for collections received by the
County on behalf of the State of Maryland and incorporated towns located within the
County. These taxes are collected by the County along with County taxes and are then
remitted to the proper jurisdiction.
Motor Vehicle Administration Deposits – This fund accounts for funds collected by
the County for State vehicle registration fees.
Mid-shore Regional Recycling Program (MRRP) – This fund accounts for activities of
the regional recycling effort that is supported by four counties, including Queen Anne’s
County.
Escheat – Abandoned Property – This fund accounts for stale-dated County payroll
and disbursements checks that are voided by the County after six months 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.
- 159 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
JUNE 30, 2010
QUEEN ANNE'S QUEEN ANNE'S TOTAL
COUNTY COUNTY QUEEN ANNE'S OPEB
QUEEN ANNE'S PUBLIC HOUSING BOARD OF COUNTY KENT TRUST
COUNTY AUTHORITY EDUCATION LIBRARY COUNTY FUND
ASSETS
Cash and Cash Equivalents $ 4 89,495 $ 1 1,774 $ 5 01,269 $ 3 0,076 $ 1 55,393 $ 1,188,007
Total Assets 4 89,495 1 1,774 5 01,269 3 0,076 1 55,393 1,188,007
LIABILITIES
Due to Other Governments - - - - 1 55,393 155,393
Total Liabilities - - - - 1 55,393 155,393
NET ASSETS HELD IN TRUST $ 4 89,495 $ 1 1,774 $ 5 01,269 $ 3 0,076 $ - $ 1,032,614
- 160 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2010
QUEEN ANNE'S QUEEN ANNE'S TOTAL
COUNTY COUNTY QUEEN ANNE'S OPEB
QUEEN ANNE'S PUBLIC HOUSING BOARD OF COUNTY TRUST
COUNTY AUTHORITY EDUCATION LIBRARY FUND
ADDITIONS
Contributions
Employers $ 599,820 $ 4,401 $ 1 ,176,586 $ 12,200 $ 1,793,007
Members 214,032 3 ,240 5 79,788 4,900 801,960
Total Contributions 813,852 7 ,641 1 ,756,374 17,100 2,594,967
Investment Income 1,222 2 9 1 ,251 7 5 2 ,577
Total Additions 815,074 7 ,670 1 ,757,625 17,175 2,597,544
DEDUCTIONS
Claims Paid 813,852 7 ,641 1 ,756,374 17,100 2,594,967
Change in Assets 1,222 2 9 1 ,251 7 5 2 ,577
NET ASSETS HELD IN TRUST
Net Assets - Beginning of Year 488,273 11,745 500,018 30,001 1,030,037
Net Assets - End of Year $ 489,495 $ 11,774 $ 501,269 $ 30,076 $ 1,032,614
- 161 -

Picturesque scenes are just off the beaten path throughout the County.

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
AGENCY FUNDS
JUNE 30, 2010
STATE MOTOR
TAX & TOWN VEHICLE MIDSHORE ESCHEAT - TOTAL
DITCH ZONING TAX ADMIN REGIONAL ABANDONED AGENCY
FUND DEPOSITS COLLECTIONS DEPOSITS RECYCLING PROPERTY FUNDS
ASSETS
Cash and Cash Equivalents $ 1 38,243 $ 1 66,024 $ 7 8,034 $ 7,218 $ 26,635 $ 1 ,302 $ 4 17,456
Miscellaneous Receivables - - - - 26,149 - 2 6,149
Total Assets $ 1 38,243 $ 1 66,024 $ 7 8,034 $ 7,218 $ 52,784 $ 1 ,302 $ 4 43,605
LIABILITIES
Due to Other Governments $ - $ - $ 7 8,034 $ 7,218 $ 52,784 $ 1 ,026 $ 1 39,062
Deposits and Escrows 1 38,243 1 66,024 - - - 2 76 3 04,543
Total Liabilities $ 138,243 $ 1 66,024 $ 7 8,034 $ 7,218 $ 52,784 $ 1 ,302 $ 4 43,605
- 163 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Miscellaneous Total
Cash Receivables Assets
TAX DITCH FUND
Balance 7-1-09 $ 121,219 $ - $ 121,219
Additions 64,586 - 6 4,586
Deductions (47,562) - (47,562)
Balance 6-30-10 $ 138,243 $ - $ 138,243
ZONING DEPOSITS
Balance 7-1-09 $ 159,217 $ - $ 159,217
Additions 6,807 - 6 ,807
Deductions - - -
Balance 6-30-10 $ 166,024 $ - $ 166,024
STATE AND TOWN TAX COLLECTIONS
Balance 7-1-09 $ 81,068 $ - $ 8 1,068
Additions 12,619,881 - 12,619,881
Deductions (12,622,915) - (12,622,915)
Balance 6-30-10 $ 78,034 $ - $ 7 8,034
MOTOR VEHICLE ADMIN DEPOSITS
Balance 7-1-09 $ 10,342 $ - $ 1 0,342
Additions 373,459 - 3 73,459
Deductions (376,583) - (376,583)
Balance 6-30-10 $ 7,218 $ - $ 7 ,218
MIDSHORE REGIONAL RECYCLING
Balance 7-1-09 $ - $ 1 65,626 $ 165,626
Additions 1,071,549 26,149 1,097,698
Deductions (1,044,914) (165,626) (1,210,540)
Balance 6-30-10 $ 26,635 $ 26,149 $ 5 2,784
ESCHEAT - ABANDONED PROPERTY
Balance 7-1-09 $ 2,363 $ - $ 2 ,363
Additions 1,542 - 1 ,542
Deductions (2,603) - (2,603)
Balance 6-30-10 $ 1,302 $ - $ 1 ,302
TOTALS - ALL AGENCY FUNDS
Balance 7-1-09 $ 374,209 $ 1 65,626 $ 539,835
Additions 14,137,824 26,149 14,163,973
Deductions (14,094,577) (165,626) (14,260,203)
Balance 6-30-10 $ 417,456 $ 26,149 $ 443,605
- 164 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
(CONTINUED)
Due to
Other Escrow Total
Governments Deposits Liabilities
$ - $ 1 21,219 $ 121,219
- 1 7,024 17,024
- - -
$ - $ 1 38,243 $ 138,243
$ - $ 1 59,217 $ 159,217
- 6,807 6,807
- - -
$ - $ 1 66,024 $ 166,024
$ 81,068 $ - $ 81,068
12,619,881 - 12,619,881
(12,622,915) - (12,622,915)
$ 78,034 $ - $ 78,034
$ 10,342 $ - $ 10,342
372,472 - 372,472
(375,596) - (375,596)
$ 7,218 $ - $ 7,218
$ 165,626 $ - $ 165,626
332,493 - 332,493
(445,335) - (445,335)
$ 52,784 $ - $ 52,784
$ 2,087 $ 276 $ 2,363
1,542 - 1,542
(2,603) - (2,603)
$ 1,026 $ 276 $ 1,302
$ 259,123 $ 2 80,712 $ 539,835
13,326,388 2 3,831 13,350,219
(13,446,449) - (13,446,449)
$ 139,062 $ 3 04,543 $ 443,605
- 165 -

Queen Anne’s County is a popular stop for birds travelling the Atlantic Migration Flyway.

Changes in Capital Assets
Interfund Receivables and Payables
Interfund Transfers
Capital Assets are material physical assets whose useful lives exceed one year. Capital Assets
represent a significant portion of the County’s total assets. The capital asset schedule included in
this section outlines the types of changes that took place in governmental capital assets during
the fiscal year.
Interfund receivables and payables are usually used by the County to cover temporary cash
deficits in individual funds until grant funds are received. Occasionally, these receivables and
payables are used in lieu of short-term external borrowing, such as for capital lease agreements.
Interfund Transfers represent a transfer of resources from one fund to another, without
expectation of repayment, and are usually undertaken to enable the receiving entity to provide
services that the government has determined to be in the best interest of the County.
The following detailed schedules of changes in capital assets, interfund receivables and
payables, and interfund transfers are optional schedules added in order to clarify the tables found
in Note 6 – Capital Assets, Note 7 – Interfund Receivables and Payables, and Note 8 – Interfund
Transfers. The note schedules are more condensed and show totals by fund type, whereas the
following detailed schedules provide totals by individual funds.
- 167 -

QUEEN ANNE'S COUNTY, MARYLAND
DETAILED SCHEDULE OF CHANGES IN CAPITAL ASSETS
FOR THE YEAR ENDED JUNE 30, 2010
General General Less
Governmental Capital Capital Roads Capital Asset Less Current Year Change in
Governmental Force in Kind Projects - Projects - Capital Donations Capital Asset Depreciation Capital
Governmental Activities Capital Outlay Expenditures Additions Conversions Projects & Transfers Retirements Expense Assets
Capital Assets, not being depreciated:
Land $ - $ - $ 814,823 $ - $ - $ - $ ( 1,618) $ - $ 813,205
Intangible Rights - - - 13,390 - - - - 13,390
Land Improvements - - - - - - - - -
Construction in Progress - 207,588 4,356,098 (6,027,382) 214,286 - (1,291,800) - (2,541,210)
Land - Inexhaustible Infrastructure Improvements - - - - - 51,946 - - 51,946
Total Capital Assets, not being depreciated - 207,588 5,170,921 (6,013,992) 214,286 51,946 (1,293,418) - (1,662,669)
Capital Assets, being depreciated:
Buildings and Building Improvements 7,811 - 499,408 4,529,875 - 2,067,293 ( 1,601) - 7,102,786
Improvements other than Buildings 7,800 - (1,730) 584,297 - - ( 586) - 589,781
Vehicles 279,613 - 607,514 - - 10,000 (116,795) - 780,332
Equipment 140,223 - 7 ,400 97,813 - - (370,738) - (125,302)
Furniture and Fixtures 915,064 - 2 0,431 802,007 - 78,272 (495,188) - 1,320,586
Infrastructure Improvements - Depreciable - - - - - 12,986 - - 12,986
Total Capital Assets, being depreciated 1,350,511 - 1,133,023 6,013,992 - 2,168,551 (984,908) - 9,681,169
Less Accumulated Depreciation - - - - - - 804,914 (3,307,796) (2,502,882)
Total Capital Assets, being depreciated, net 1,350,511 - 1,133,023 6,013,992 - 2,168,551 (179,994) (3,307,796) 7,178,287
Total Increase (Decrease) in Capital Assets $ 1,350,511 $ 207,588 $ 6,303,944 $ - $ 214,286 $ 2,220,497 $ (1,473,412) $ (3,307,796) $ 5,515,618
- 168 -

QUEEN ANNE'S COUNTY, MARYLAND
DETAILED SCHEDULE OF INTERFUND RECEIVABLES AND PAYABLES
JUNE 30, 2010
DUE FROM FUND
NON-MAJOR COMPONENT
NON-MAJOR GOVERNMENTAL MAJOR ENTERPRISE ENTERPRISE UNITS
COMMUNITY CAPITAL SANITARY QUEEN ANNE'S
HOUSING AND PARTNERSHIPS PROJECTS - DISTRICT COUNTY
DEPARTMENT COMMUNITY FOR FIRE COMPANY DEBT SERVICE BAY BRIDGE GOLF BOARD OF
DUE TO FUND OF AGING SERVICES CHILDREN IMPACT FEES SUBTOTAL FUND AIRPORT SUBTOTAL COURSE EDUCATION TOTAL
General Fund $ 1 97,779 $ 215,688 $ 1 0,785 $ - $ 4 24,252 $ - $ 500,591 $ 500,591 $ 95,147 $ - $ 1 ,019,990
Capital Projects Funds
General Capital Projects - - - 70,071 70,071 - - - - 344,546 414,617
Enterprise Funds
Sanitary District - Sewer Operating - - - - - 1 52,458 - 152,458 - - 152,458
Parks and Recreation -
Recreational Programs - - - - - - - - 30,000 - 30,000
Enterprise Funds Total - - - - - 1 52,458 - 152,458 30,000 - 182,458
TOTAL ALL FUNDS $ 1 97,779 $ 215,688 $ 1 0,785 $ 70,071 $ 4 94,323 $ 152,458 $ 500,591 $ 653,049 $ 125,147 $ 344,546 $ 1 ,617,065
- 169 -

QUEEN ANNE'S COUNTY, MARYLAND
DETAILED SCHEDULE OF INTERFUND TRANSFERS
JUNE 30, 2010
TRANSFERS IN FUND
MAJOR GOVERNMENTAL
TOTAL GENERAL GENERAL ROADS ROADS
TRANSFERS OUT FUND TRANSFERS OUT FUND CAPITAL PROJECTS CAPITAL BOARD SUBTOTAL
Major Governmental Funds
General Fund $ 8,219,656 $ - $ 664,733 $ - $ 4,663,551 $ 5,328,284
General Capital Projects 8,580,558 8,310,000 - - - 8,310,000
Roads Capital Projects 10,000 - 10,000 - - 10,000
Impact Fees - Schools 1,408,120 1,408,120 - - - 1,408,120
Roads Board 444,963 - - 444,963 - 444,963
Total Transfers Out by Major Governmental Funds 18,663,297 9,718,120 674,733 444,963 4,663,551 15,501,367
Special Revenue Funds
Community Partnerships 18,314 18,314 - - - 18,314
Kent Narrows 45,604 45,604 - - - 45,604
Rural Legacy 7,250 7,250 - - - 7,250
Impact Fees - Parks & Recreation 9,777 - 9,777 - - 9,777
Total Transfers Out by Special Revenue Funds 80,945 71,168 9,777 - - 80,945
Major Enterprise Funds
Sanitary District - Restricted 1,574,314 - - - - -
Sanitary District - Debt Service 2,084,030 - - - - -
Bay Bridge Airport 10,000 10,000 - - - 10,000
Total Transfers Out by Major Enterprise Funds 3,668,344 10,000 - - - 10,000
Non-Major Enterprise Funds
Public Landings 86,913 86,913 - - - 86,913
Total Transfers Out by All Funds $ 22,499,499 $ 9,886,201 $ 684,510 $ 444,963 $ 4,663,551 $ 15,679,225
- 170 -

QUEEN ANNE'S COUNTY, MARYLAND
DETAILED SCHEDULE OF INTERFUND TRANSFERS
JUNE 30, 2010
(CONTINUED)
NON-MAJOR GOVERNMENTAL
COMMUNITY CAPITAL
HOUSING AND PARTNERSHIPS PROJECTS -
DEPARTMENT COMMUNITY FOR LAW AGRICULTURAL REVOLVING FIRE COMPANY
OF AGING SERVICES CHILDREN LIBRARY TRANSFER LOAN FUND IMPACT FEES SUBTOTAL
$ 1,564,634 $ 368,639 $ 257,264 $ 9 ,953 $ 10,463 $ - $ 84,733 $ 2,295,686
- 200,000 - - - 10,000 - 210,000
- - - - - - - -
- - - - - - - -
- - - - - - - -
1,564,634 568,639 257,264 9 ,953 10,463 10,000 84,733 2,505,686
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
$ 1,564,634 $ 568,639 $ 257,264 $ 9 ,953 $ 10,463 $ 10,000 $ 84,733 $ 2,505,686
CONTINUED
- 171 -

QUEEN ANNE'S COUNTY, MARYLAND
DETAILED SCHEDULE OF INTERFUND TRANSFERS
JUNE 30, 2010
(CONTINUED)
TRANSFERS IN FUND
MAJOR ENTERPRISE
SANITARY DISTRICT
SEWER WATER DEBT SERVICE BAY BRIDGE
TRANSFERS OUT FUND OPERATIONS OPERATIONS FUND SUBTOTAL AIRPORT SUBTOTAL
Major Governmental Funds
General Fund $ 4,762 $ 84,782 $ - $ 89,544 $ 51,207 $ 140,751
General Capital Projects - - - - 60,558 60,558
Roads Capital Projects - - - - - -
Impact Fees - Schools - - - - - -
Roads Board - - - - - -
Total Transfers Out by Major Governmental Funds 4 ,762 84,782 - 89,544 111,765 201,309
Special Revenue Funds
Community Partnerships - - - - - -
Kent Narrows - - - - - -
Rural Legacy - - - - - -
Impact Fees - Parks & Recreation - - - - - -
Total Transfers Out by Special Revenue Funds - - - - - -
Major Enterprise Funds
Sanitary District - Restricted - 517,518 1 ,056,796 1,574,314 - 1,574,314
Sanitary District - Debt Service 1,711,161 372,869 - 2,084,030 - 2,084,030
Bay Bridge Airport - - - - - -
Total Transfers Out by Major Enterprise Funds 1,711,161 890,387 1 ,056,796 3,658,344 - 3,658,344
Non-Major Enterprise Funds
Public Landings - - - - - -
Total Transfers Out by All Funds $ 1,715,923 $ 9 75,169 $ 1,056,796 $ 3 ,747,888 $ 111,765 $ 3,859,653
- 172 -

QUEEN ANNE'S COUNTY, MARYLAND
DETAILED SCHEDULE OF INTERFUND TRANSFERS
JUNE 30, 2010
(CONTINUED)
NON-MAJOR ENTERPRISE
RECREATION PROPERTY PUBLIC TOTAL
PROGRAMS MANAGEMENT MARINAS SUBTOTAL TRANSFERS IN
$ 424,468 $ 25,000 $ 5,467 $ 454,935 $ 8,219,656
- - - - 8,580,558
- - - - 10,000
- - - - 1,408,120
- - - - 444,963
424,468 25,000 5,467 454,935 18,663,297
- - - - 18,314
- - - - 45,604
- - - - 7 ,250
- - - - 9 ,777
- - - - 80,945
- - - - 1,574,314
- - - - 2,084,030
- - - - 10,000
- - - - 3,668,344
- - - - 86,913
$ 424,468 $ 25,000 $ 5,467 $ 454,935 $ 22,499,499
- 173 -

The Liberty Building in Centreville, the county seat since 1794, houses some of the
government operations.

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.
- 175 -

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
COMBINING BALANCE SHEETS
BY GRANTOR
JUNE 30, 2010 (with Summarized Totals as of June 30, 2009)
Federal
Fed/State Federal Drug-Free
GOCCP Family Community State State
Admin GOC Support Ctr SAMHSA CSAFE OTHER
ASSETS
Cash and cash equivalents $ 30,304 $ 674,242 $ 4,131 $ - $ - $ 33,908
Accounts receivable 1,990 - - - - -
Due from State governmental agencies 45,014 114,513 - - 5,596 -
Due from Federal governmental agencies - 51,008 - 5,265 - -
Total Assets $ 77,308 $ 839,763 $ 4,131 $ 5,265 $ 5,596 $ 33,908
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued expenditures $ 7,574 $ 287,367 $ - $ 76 $ - $ -
Due to other funds - - - 5,189 5,596 -
Due to State governmental agencies 2,175 549,792 4,131 - - 33,908
Due to Federal governmental agencies - - - - - -
Deferred revenue - - - - - -
Total Liabilities 9,749 837,159 4,131 5,265 5,596 33,908
FUND BALANCES
Reserved
Donor-Specified Purposes 50 1,000 - - - -
Total Reserved 50 1,000 - - - -
Unreserved 67,509 1,604 - - - -
Total Fund Balances 67,559 2,604 - - - -
Total Liabilities and Fund Balances $ 77,308 $ 839,763 $ 4,131 $ 5,265 $ 5,596 $ 33,908
- 176 -

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
COMBINING BALANCE SHEETS
BY GRANTOR
JUNE 30, 2010 (with Summarized Totals as of June 30, 2009)
(CONTINUED)
Total Returned 2009
Community Reinvestment 2010 Summarized
Partnerships Fund Total Total
$ 742,585 $ 5,361 $ 747,946 $ 970,868
1,990 - 1,990 2,140
165,123 - 165,123 226,631
56,273 - 56,273 66,293
$ 965,971 $ 5,361 $ 971,332 $ 1,265,932
$ 295,017 $ - $ 295,017 $ 282,046
10,785 - 10,785 39,344
590,006 - 590,006 596,219
- - - -
- - - 258,287
895,808 - 895,808 1,175,896
1,050 - 1,050 1,050
1,050 - 1,050 1,050
69,113 5,361 74,474 88,986
70,163 5,361 75,524 90,036
$ 965,971 $ 5,361 $ 971,332 $ 1,265,932
- 177 -

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, 2010 (with Summarized Totals for the Year Ended June 30, 2009)
Federal/State GOCCP/GOC
Administrative Healthy
Operating Fund POS CASA Resource Chesapeake Fam/Home Family
Total Return Start Promotion Helps Visiting Navigators
REVENUES
CPA
Intergovernmental
GOC $ 209,017 $ 102,535 $ 46,116 $ 63,372 $ 1 45,747 $ 62,986 $ 168,752
GOC - Carryforward - - - - - - -
Subtotal CPA 209,017 1 02,535 46,116 63,372 1 45,747 62,986 168,752
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - - 49,108 - - - -
Federal SAMHSA Drug-Free Communities - - - - - - -
Federal MSDE Healthy Families - - - - - 296,372 -
GOC - non-CPA - - - - - - -
State GOCCP - non-CPA - - 51,230 - - - -
Other - - - - - - -
Investment Income 970 - - - - - -
Donations 10,000 - 8,458 18,609 - 1,496 -
Miscellaneous 26,369 - - - - - -
Subtotal Non-CPA 37,339 - 108,796 18,609 - 297,868 -
Total Revenues 246,356 1 02,535 154,912 81,981 1 45,747 360,854 168,752
EXPENDITURES
CPA
Program Contracted Services - 2 4,454 54,575 81,981 1 45,747 - 168,752
Other Expenditures
Salaries 155,293 - - - - - -
Fringe Benefit Costs 46,572 - - - - - -
Auditing - - - - - - -
Consultants 10,000 - - - - - -
Professional Groups - - - - - - -
Equipment Rental 273 - - - - - -
Postage 1,370 - - - - - -
Office Supplies 713 - - - - - -
Printing and Publishing - - - - - - -
Equipment Operation 121 - - - - - -
Business Travel 226 - - - - - -
Meetings & Conferences - - - - - - -
Training - - - - - - -
Board's Expenditures - - - - - - -
Advertising - - - - - - -
Marketing/Promotions - - - - - - -
Communications 537 - - - - - -
Utilities 1,773 - - - - - -
Rent 2,139 - - - - - -
Other Charges - 7 8,081 - - - 64,482 -
Subtotal CPA Expenditures 219,017 1 02,535 54,575 81,981 1 45,747 64,482 168,752
Non-CPA
Program Contracted Services - - 78,165 - - 296,372 -
Other Expenditures
Salaries 88,548 - 18,577 - - - -
Fringe Benefit Costs 40,627 - 3,595 - - - -
Auditing 2,200 - - - - - -
Consultants 136 - - - - - -
Professional Groups 350 - - - - - -
Equipment Rental 5,679 - - - - - -
Other Contracted Services - - - - - - -
Postage 900 - - - - - -
Office Supplies 2,411 - - - - - -
Equipment Operation 153 - - - - - -
Business Travel 3 4 - - - - - -
Meetings & Conferences 1 0 - - - - - -
Board's Expenditures 13,782 - - - - - -
Advertising 306 - - - - - -
Marketing/Promotions - - - - - - -
Communications 765 - - - - - -
Utilities - - - - - - -
Rent 21,251 - - - - - -
Other Charges 21,973 - - - - - -
Subtotal Non-CPA Expenditures 199,125 - 100,337 - - 296,372 -
Total Expenditures 418,142 1 02,535 154,912 81,981 1 45,747 360,854 168,752
Excess of Revenues Over (Under) Expenditures (171,786) - - - - - -
OTHER FINANCING SOURCES (USES)
Transfers In (Out) within Partnerships - - - - - - -
Transfers Out - - - - - - -
Transfers In (Out) for
Program Contracted Services - In 157,264 - - - - - -
Program Contracted Services - Out - - - - - - -
Other Financing Sources (Uses) 157,264 - - - - - -
Net Increase (Decrease) in Fund Balances $ (14,522) $ - $ - $ - $ - $ - $ -
- 178 -

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, 2010 (with Summarized Totals for the Year Ended June 30, 2009)
(CONTINUED)
Federal/State GOCCP/GOC
MD Mental Pyscho- Child Summer GOCCP/GOC
After School Character Outpatient Educational Telehealth Mental Recreation Operating Fund
Opportunity Counts Clinic Groups Access Certification Camp Total
$ 46,618 $ 1 2,862 $ - $ - $ - $ - $ - $ 648,988
- - - - - - - -
4 6,618 12,862 - - - - - 648,988
- - - - - - - 4 9,108
- - - - - - - -
- - - - - - - 296,372
- - 201,157 10,277 35,026 3,200 800 250,460
- - - - - - - 5 1,230
- - - - - - - -
- - - - - - - -
1 5,993 3,828 - - - - - 4 8,384
- - - - - - - -
1 5,993 3,828 201,157 10,277 35,026 3,200 800 695,554
6 2,611 16,690 201,157 10,277 35,026 3,200 800 1,344,542
6 2,611 - - - - - - 538,120
- 8,139 - - - - - 8 ,139
- 643 - - - - - 6 43
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- 228 - - - - - 2 28
- - - - - - - -
- - - - - - - -
- - - - - - - -
- 2,868 - - - - - 2 ,868
- - - - - - - -
- - - - - - - -
- 136 - - - - - 1 36
- 4,676 - - - - - 4 ,676
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - 142,563
6 2,611 16,690 - - - - - 697,373
1 00,000 - 201,158 10,277 35,026 3,200 800 724,998
- - - - - - - 1 8,577
- - - - - - - 3 ,595
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
1 00,000 - 201,158 10,277 35,026 3,200 800 747,170
1 62,611 16,690 201,158 10,277 35,026 3,200 800 1,444,543
( 100,000) - ( 1) - - - - ( 100,001)
- - - - - - - -
- - - - - - - -
1 00,000 - - - - - 100,000
- - - - - - - -
1 00,000 - - - - - - 100,000
$ - $ - $ (1) $ - $ - $ - $ - $ (1)
CONTINUED
- 179 -

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, 2010 (with Summarized Totals for the Year Ended June 30, 2009)
(CONTINUED)
Drug Free
Community CSAFE
Operating Fund Community All Programs
Total Policing Subtotal
REVENUES
CPA
Intergovernmental
GOC $ - $ - $ 8 58,005
GOC - Carryforward - - -
Subtotal CPA - - 858,005
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - - 49,108
Federal SAMHSA Drug-Free Communities 53,317 - 53,317
Federal MSDE Healthy Families - - 296,372
GOC - non-CPA - - 250,460
State GOCCP - non-CPA - - 51,230
Other - 17,864 17,864
Investment Income - - 970
Donations 500 - 58,884
Miscellaneous - - 26,369
Subtotal Non-CPA 53,817 17,864 804,574
Total Revenues 53,817 17,864 1 ,662,579
EXPENDITURES
CPA
Program Contracted Services - - 538,120
Other Expenditures
Salaries - - 163,432
Fringe Benefit Costs - - 47,215
Auditing - - -
Consultants - - 10,000
Professional Groups - - -
Equipment Rental - - 273
Postage - - 1,370
Office Supplies - - 941
Printing and Publishing - - -
Equipment Operation - - 121
Business Travel - - 226
Meetings & Conferences - - 2,868
Training - - -
Board's Expenditures - - -
Advertising - - 136
Marketing/Promotions - - 4,676
Communications - - 537
Utilities - - 1,773
Rent - - 2,139
Other Charges - - 142,563
Subtotal CPA Expenditures - - 916,390
Non-CPA
Program Contracted Services - - 724,998
Other Expenditures
Salaries 11,401 - 118,526
Fringe Benefit Costs 4,553 - 48,775
Auditing 220 - 2,420
Consultants 13,392 - 13,528
Professional Groups - - 350
Equipment Rental - - 5,679
Other Contracted Services 11,857 - 11,857
Postage - - 900
Office Supplies 104 - 2,515
Equipment Operation - - 153
Business Travel - - 34
Meetings & Conferences 2,604 - 2,614
Board's Expenditures - - 13,782
Advertising 4,785 - 5,091
Marketing/Promotions 2,944 - 2,944
Communications 10 - 775
Utilities 822 - 822
Rent 675 - 21,926
Other Charges - - 21,973
Subtotal Non-CPA Expenditures 53,367 - 999,662
Total Expenditures 53,367 - 1 ,916,052
Excess of Revenues Over (Under) Expenditures 450 17,864 (253,473)
OTHER FINANCING SOURCES (USES)
Transfers In (Out) within Partnerships - - -
Transfers Out - - -
Transfers In (Out) for
Program Contracted Services - In - - 257,264
Program Contracted Services - Out (450) (17,864) (18,314)
Other Financing Sources (Uses) (450) (17,864) 238,950
Net Increase (Decrease) in Fund Balances $ - $ - (14,523)
Fund Balances, July 1 84,686
Fund Balances, June 30 $ 70,163
CONTINUED
- 180 -

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, 2010 (with Summarized Totals for the Year Ended June 30, 2009)
(CONTINUED)
State Federal Total
State GOC GOCCP GOCCP Federal Community Returned 2009
CPA Non-CPA Non-CPA Youth Drug Free Federal Partnerships Reinvestment 2010 Summarized
Subtotal Subtotal Subtotal Strategies Community MSDE Other Operating Funds Fund Total Total
$ 8 58,005 $ - $ - $ - $ - $ - $ - $ 8 58,005 $ - $ 858,005 $ 1,179,374
- - - - - - - - - - 4 ,733
858,005 - - - - - - 8 58,005 - 858,005 1,184,107
- - - 49,108 - - - 4 9,108 - 49,108 68,844
- - - - 53,317 - - 5 3,317 - 53,317 93,883
- - - - - 296,372 - 2 96,372 - 296,372 296,372
- 250,460 - - - - - 2 50,460 - 250,460 5 ,600
- - 51,230 - - - - 5 1,230 - 51,230 -
- - - - - - 17,864 1 7,864 - 17,864 48,832
- - - - - - 970 970 11 981 8 ,736
- - - - - - 58,884 5 8,884 - 58,884 -
- - - - - - 26,369 2 6,369 - 26,369 25,188
- 250,460 51,230 49,108 53,317 296,372 104,087 8 04,574 11 804,585 547,455
858,005 250,460 51,230 49,108 53,317 296,372 104,087 1 ,662,579 11 1,662,590 1,731,562
538,120 - - - - - - 5 38,120 - 538,120 807,778
163,432 - - - - - - 1 63,432 - 163,432 221,061
47,215 - - - - - - 4 7,215 - 47,215 79,614
- - - - - - - - - - 2 ,686
10,000 - - - - - - 1 0,000 - 10,000 19,498
- - - - - - - - - - 5 00
273 - - - - - - 273 - 273 4 ,200
1,370 - - - - - - 1,370 - 1,370 1 ,838
941 - - - - - - 941 - 941 6 ,975
- - - - - - - - - - 2 46
121 - - - - - - 121 - 121 3 80
226 - - - - - - 226 - 226 1 52
2,868 - - - - - - 2,868 - 2,868 5 ,097
- - - - - - - - - - 5 92
- - - - - - - - - - 5 ,146
136 - - - - - - 136 - 136 5 00
4,676 - - - - - - 4,676 - 4,676 9 ,326
537 - - - - - - 537 - 537 1 ,073
1,773 - - - - - - 1,773 - 1,773 1 ,654
2,139 - - - - - - 2,139 - 2,139 19,185
142,563 - - - - - - 1 42,563 - 142,563 1 ,990
916,390 - - - - - - 9 16,390 - 916,390 1,189,491
- 250,461 51,230 26,935 - 296,372 100,000 7 24,998 - 724,998 497,338
- - - 18,577 11,401 - 88,548 1 18,526 - 118,526 52,872
- - - 3,595 4,553 - 40,627 4 8,775 - 48,775 12,438
- - - - 220 - 2,200 2,420 - 2,420 1 ,264
- - - - 13,392 - 136 1 3,528 - 13,528 11,646
- - - - - - 350 350 - 350 1 50
- - - - - - 5,679 5,679 - 5,679 1 ,251
- - - - 11,857 - - 1 1,857 - 11,857 147,040
- - - - - - 900 900 - 900 5 06
- - - - 104 - 2,411 2,515 - 2,515 -
- - - - - - 153 153 - 153 -
- - - - - - 34 34 - 34 -
- - - - 2,604 - 10 2,614 - 2,614 19,934
- - - - - - 13,782 1 3,782 - 13,782 -
- - - - 4,785 - 306 5,091 - 5,091 -
- - - - 2,944 - - 2,944 - 2,944 5 ,142
- - - - 1 0 - 765 775 - 775 1 84
- - - - 822 - - 822 - 822 1 ,242
- - - - 675 - 21,251 2 1,926 - 21,926 3 ,022
- - - - - - 21,973 2 1,973 - 21,973 -
- 250,461 51,230 49,107 53,367 296,372 299,125 9 99,662 - 999,662 754,029
916,390 250,461 51,230 49,107 53,367 296,372 299,125 1 ,916,052 - 1,916,052 1,943,520
(58,385) (1) - 1 ( 50) - (195,038) (253,473) 11 (253,462) (211,958)
- - - - - - - - - - 50,000
- - - - - - - - - - ( 50,000)
257,264 - - - - - - 2 57,264 - 257,264 105,384
- - - - ( 450) - (17,864) (18,314) - (18,314) ( 23,660)
257,264 - - - ( 450) - (17,864) 2 38,950 - 238,950 81,724
198,879 (1) - 1 ( 500) - (212,902) (14,523) 11 (14,512) ( 130,234)
309,408 (6,428) - - ( 1,025) - (217,269) 8 4,686 5,350 90,036 220,270
$ 5 08,287 $ (6,429) $ - $ 1 $ (1,525) $ - $ (430,171) $ 7 0,163 $ 5 ,361 $ 75,524 $ 90,036
- 181 -

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, 2010
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 $ 953,179 $ 1,177,149 $ 1,108,465 $ (68,684) $ - $ - $ - $ -
State GOCCP Non-CPA - - 5 1,230 5 1,230 - - - -
Federal GOCCP Youth Strategies 79,247 7 9,247 4 9,108 (30,139) - - - -
Federal SAMHSA Drug-Free Communities 99,948 9 9,948 5 3,317 (46,631) - - - -
Federal MSDE Healthy Families 245,989 2 96,372 2 96,372 - - - - -
Other 11,806 1 1,806 1 7,864 6 ,058 - - - -
Investment Income - - 970 970 - - 1 1 11
Donations - 5 6,926 5 8,884 1 ,958 - - - -
Miscellaneous - - 2 6,369 2 6,369 - - - -
Total Revenues 1,390,169 1,721,448 1,662,579 (58,869) - - 1 1 11
EXPENDITURES
Program Contracted Services 1,060,519 1,460,140 1,263,118 1 97,022 - - - -
Other Expenditures
Salaries 273,551 2 81,351 2 81,958 ( 607) - - - -
Fringe Benefit Costs 125,365 1 13,896 9 5,990 1 7,906 - - - -
Auditing 3,290 3 ,290 2,420 870 - - - -
Consultants 28,098 2 7,648 2 3,528 4 ,120 - - - -
Professional Groups 750 750 350 400 - - - -
Equipment Rental 4,200 4 ,200 5,952 (1,752) - - - -
Other Contracted Services - - 1 1,857 (11,857) - - - -
Postage 3,100 3 ,100 2,270 830 - - - -
Office Supplies 10,583 6 ,600 3,456 3 ,144 - - - -
Printing and Publishing 5,326 5 ,352 - 5 ,352 - - - -
Equipment Operation 500 500 274 226 - - - -
Business Travel 350 350 260 90 - - - -
Meetings & Conferences 28,680 3 0,810 5 ,482 2 5,328 - - - -
Training 1,910 1 ,550 - 1 ,550 - - - -
Board's Expenditures 6,700 6 ,700 1 3,782 (7,082) - - - -
Advertising - - 5,227 (5,227) - - - -
Marketing/Promotions 5,025 4 ,544 7,620 (3,076) - - - -
Communications 1,727 1 ,727 1,312 415 - - - -
Utilities 3,907 3 ,907 2,595 1 ,312 - - - -
Rent 25,585 2 5,585 2 4,065 1 ,520 - - - -
Other Charges - - 1 64,536 (164,536) - - - -
Capital Outlay CPA 3,495 3 ,495 - 3 ,495 - - - -
Total Expenditures 1,592,661 1,985,495 1,916,052 6 9,443 - - - -
Excess of Revenues Over (Under)
Expenditures (202,492) (264,047) (253,473) 1 0,574 - - 1 1 11
OTHER FINANCING SOURCES (USES)
Transfers In (Out) within Partnerships 30,855 7 2,355 - (72,355) - - - -
Transfers Out (72,355) (43,030) - 4 3,030 - - - -
Transfers In (Out) for:
Program Contracted Services - In 269,899 2 57,264 2 57,264 - - - - -
Program Contracted Services - Out (25,907) (22,542) (18,314) 4 ,228 - - - -
Other Financing Sources (Uses) 202,492 2 64,047 2 38,950 (25,097) - - - -
Net Increase (Decrease) in
Fund Balances/Net Assets $ - $ - (14,523) $ (14,523) $ - $ - 1 1 $ 11
Fund Balances, July 1 8 4,686 5,350
Fund Balances, June 30 $ 7 0,163 $ 5,361
- 182 -

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, 2010
(CONTINUED)
TOTAL
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ 953,179 $ 1 ,177,149 $ 1,108,465 $ (68,684)
- - 5 1,230 51,230
79,247 79,247 4 9,108 ( 30,139)
99,948 99,948 5 3,317 ( 46,631)
245,989 2 96,372 2 96,372 -
11,806 11,806 1 7,864 6,058
- - 981 981
- 56,926 5 8,884 1,958
- - 2 6,369 26,369
1,390,169 1 ,721,448 1,662,590 ( 58,858)
1,060,519 1 ,460,140 1,263,118 1 97,022
273,551 2 81,351 2 81,958 ( 607)
125,365 113,896 9 5,990 17,906
3,290 3,290 2 ,420 870
28,098 27,648 2 3,528 4,120
750 750 350 400
4,200 4,200 5 ,952 ( 1,752)
- - 1 1,857 ( 11,857)
3,100 3,100 2 ,270 830
10,583 6,600 3 ,456 3,144
5,326 5,352 - 5,352
500 500 274 226
350 350 260 90
28,680 30,810 5 ,482 25,328
1,910 1,550 - 1,550
6,700 6,700 1 3,782 ( 7,082)
- - 5 ,227 ( 5,227)
5,025 4,544 7 ,620 ( 3,076)
1,727 1,727 1 ,312 415
3,907 3,907 2 ,595 1,312
25,585 25,585 2 4,065 1,520
- - 1 64,536 (164,536)
3,495 3,495 - 3,495
1,592,661 1 ,985,495 1,916,052 69,443
( 202,492) (264,047) (253,462) 10,585
30,855 72,355 - ( 72,355)
(72,355) ( 43,030) - 43,030
269,899 2 57,264 2 57,264 -
(25,907) ( 22,542) (18,314) 4,228
202,492 2 64,047 2 38,950 ( 25,097)
$ - $ - (14,512) $ (14,512)
9 0,036
$ 7 5,524
- 183 -

Queen Anne’s County is a boater’s paradise.

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.
- 185 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
NET ASSETS BY COMPONENT - GOVERNMENT-WIDE
(GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST EIGHT FISCAL YEARS
Table 1
2003 2004 2005 2006 2007
Governmental Activities:
Invested in capital assets, net of related debt $ 111,710,606 $ 82,209,646 $ 85,784,267 $ 95,644,000 $ 103,657,227
Restricted 22,167,033 8,118,231 8,418,254 9,842,795 18,012,695
Unrestricted (deficit) (1) ( 29,783,476) ( 14,178,514) ( 6,161,281) 7,339,567 ( 3,740,905)
Total Governmental Activities Net Assets 104,094,163 76,149,363 88,041,240 112,826,362 117,929,017
Business-type Activities:
Invested in capital assets, net of related debt 50,984,848 52,094,337 55,612,719 69,672,273 74,463,912
Restricted 6,482,894 7,857,202 7,742,890 11,733,254 19,133,485
Total Business-type Activities Net Assets 57,467,742 59,951,539 63,355,609 81,405,527 93,597,397
Primary Government:
Invested in capital assets, net of related debt 162,695,454 134,303,983 141,396,986 165,316,273 178,121,139
Restricted 28,649,927 15,975,433 16,161,144 21,576,049 37,146,180
Unrestricted (deficit) (1) ( 29,783,476) ( 14,178,514) ( 6,161,281) 7,339,567 ( 3,740,905)
Total Primary Government Net Assets $ 161,561,905 $ 136,100,902 $ 151,396,849 $ 194,231,889 $ 211,526,414
NOTES:
* Government-wide net asset information is reported on the accrual basis of accounting.
* Accounting standards require that net assets be reported in three components in the financial
statements: invested in capital assets, net of related debt; restricted; and unrestricted. Net
assets are 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.
* Information prior to FY03 is not available, due to the FY03 implementation of GASB34.
* Source: Statement of Net Assets, pages 38-39.
(1) In the government-wide financial statements, the County has reported negative unrestricted net assets for some years.
This is due to the fact that the County issues general obligation bonded debt for purposes of capital construction on
behalf of the Queen Anne's County Board of Education. Absent the effect of this relationship, the County would
have reported positive net assets for its governmental activities and for government-wide purposes. Government-
wide unrestricted net assets would have been:
Unrestricted (deficit) net assets reported above $ ( 29,783,476) $ ( 14,178,514) $ ( 6,161,281) $ 7,339,567 $ (3,740,905)
Debt issued for capital on behalf of others 41,941,175 51,839,220 47,345,646 44,460,306 57,496,385
County net assets absent effect of this relationship $ 12,157,699 $ 37,660,706 $ 41,184,365 $ 51,799,873 $ 53,755,480
- 186 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
NET ASSETS BY COMPONENT - GOVERNMENT-WIDE
(GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST EIGHT FISCAL YEARS
Table 1
(CONTINUED)
2008 2009 2010
$ 117,831,360 $ 123,217,989 $ 121,702,025
15,376,330 16,582,660 22,290,307
( 15,075,202) ( 26,672,299) (45,795,597)
118,132,488 113,128,350 98,196,735
77,237,512 77,146,688 79,032,373
18,276,271 19,886,675 18,180,809
95,513,783 97,033,363 97,213,182
195,068,872 200,364,677 200,734,398
33,652,601 36,469,335 40,471,116
( 15,075,202) ( 26,672,299) (45,795,597)
$ 213,646,271 $ 210,161,713 $ 195,409,917
$ ( 15,075,202) $ ( 26,672,299) $ ( 45,795,597)
53,758,049 50,291,243 57,677,186
$ 38,682,847 $ 23,618,944 $ 11,881,589
- 187 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET ASSETS - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST EIGHT FISCAL YEARS
Table 2-a
2003 2004 2005 2006 2007
Expenses
Governmental Activities:
General Government $ 7,537,390 $ 8,902,751 $ 8,774,831 $ 9,071,760 $ 9,854,468
Public Safety 10,161,429 13,064,686 14,255,183 17,534,652 19,149,388
Public Works 7,594,914 7,512,277 8,303,570 8,898,010 9,913,917
Health 952,194 1,123,795 1,284,216 1,377,717 1,450,866
Social Services 4,003,914 4,084,308 4,786,130 4,420,205 4,474,784
Education 43,050,433 46,142,006 40,377,624 42,303,087 56,118,585
Parks & Recreation 2,068,102 3,810,546 2,385,014 2,562,890 3,158,455
Library 975,549 1,020,653 1,073,222 1,168,232 1,266,183
Conservation of Natural Resources 892,015 537,207 591,986 478,426 497,926
Economic/Community Development 1,775,216 1,634,749 1,546,516 1,575,099 3,258,876
Interest and Fiscal Charges 2,649,524 2,981,403 2,288,442 2,508,070 2,864,493
Total Governmental Activities Expenses 81,660,680 90,814,381 85,666,734 91,898,148 112,007,941
Business-type Activities:
Water and Sewer 6,603,225 6,975,749 6,974,968 7,127,140 7,802,798
Parks & Recreation 1,929,891 2,007,419 2,524,904 2,509,783 3,273,986
Public Marinas - - - - 57,372
Airport 492,856 522,863 529,755 713,896 674,337
Total Business-type Activities Expenses 9,025,972 9,506,031 10,029,627 10,350,819 11,808,493
Total Primary Government Expenses 90,686,652 100,320,412 95,696,361 102,248,967 123,816,434
Program Revenues
Governmental Activities:
General Government
Charges for Services 688,216 1,007,791 1,124,756 1,139,531 1,127,737
Operating Grants and Contributions 146,501 185,597 312,136 454,948 377,412
Capital Grants and Contributions 62,382 61,448 22,747 60,000 5,000
Total Revenue 897,099 1,254,836 1,459,639 1,654,479 1,510,149
Public Safety
Charges for Services 720,580 1,197,844 968,857 1,595,738 1,642,258
Operating Grants and Contributions 1,265,912 887,519 1,443,474 1,743,073 1,255,307
Capital Grants and Contributions - 493,132 271,867 456,993 272,497
Total Revenue 1,986,492 2,578,495 2,684,198 3,795,804 3,170,062
Public Works
Charges for Services 692,471 782,252 1,666,335 1,189,117 871,962
Operating Grants and Contributions 4,259,700 3,624,359 4,130,984 3,710,398 5,572,760
Capital Grants and Contributions 230,243 168,092 461,499 57,000 1,838,101
Total Revenue 5,182,414 4,574,703 6,258,818 4,956,515 8,282,823
Health
Operating Grants and Contributions 5,241 - - 150,966 -
Social Services
Charges for Services 265,809 188,032 162,958 58,467 73,497
Operating Grants and Contributions 2,881,622 2,769,345 3,035,511 2,550,840 2,589,967
Capital Grants and Contributions 459,411 829,082 24,388 - 172,732
Total Revenue 3,606,842 3,786,459 3,222,857 2,609,307 2,836,196
Education
Charges for Services 703,191 1,277,905 917,387 1,696,657 963,216
Operating Grants and Contributions - - - 18,000 -
Capital Grants and Contributions - - - - -
Total Revenue 703,191 1,277,905 917,387 1,714,657 963,216
Parks & Recreation
Charges for Services 20,494 14,532 21,724 68,051 158,447
Operating Grants and Contributions 8,893 4,619 - 42,690 58,485
Capital Grants and Contributions 585,164 3,103,241 297,537 5,998,982 4,363,393
Total Revenue 614,551 3,122,392 319,261 6,109,723 4,580,325
Conservation of Natural Resources
Charges for Services 89,691 109,527 150,052 119,580 100,488
Operating Grants and Contributions 250,078 324,573 371,960 680,396 597,613
Capital Grants and Contributions - 5,211 28,535 - -
Total Revenue 339,769 439,311 550,547 799,976 698,101
Economic/Community Development
Charges for Services 24,261 17,615 23,728 11,086 4,083
Operating Grants and Contributions 658,808 465,989 247,404 121,497 120,254
Capital Grants and Contributions 5,000 - - - -
Total Revenue 688,069 483,604 271,132 132,583 124,337
Total Governmental Activities Program Revenues 14,023,668 17,517,705 15,683,839 21,924,010 22,165,209
- 188 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET ASSETS - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST EIGHT FISCAL YEARS
Table 2-a
(CONTINUED)
2008 2009 2010
$ 11,167,743 $ 13,317,683 $ 14,089,387
20,721,185 23,570,049 25,361,341
10,420,547 10,237,718 9,432,489
1,441,143 1,590,004 1,663,321
4,978,883 5,617,621 5,554,667
58,034,317 53,296,238 53,491,659
3,330,087 5,060,018 3,618,427
1,270,718 1,414,008 1,473,689
2,172,443 2,473,308 5,281,372
3,527,908 2,197,116 2,001,306
3,033,416 2,831,002 3,510,678
120,098,390 121,604,765 125,478,336
9,621,784 10,689,782 10,610,705
2,179,157 2,178,163 2,789,901
27,344 38,050 96,739
812,067 879,906 1,017,780
12,640,352 13,785,901 14,515,125
132,738,742 135,390,666 139,993,461
1,047,371 1,055,945 1,261,230
295,898 403,018 546,176
757,975 5,567 44,743
2,101,244 1,464,530 1,852,149
3,167,090 1,394,463 1,263,212
1,254,611 1,266,869 1,891,120
1,171 273,176 303,566
4,422,872 2,934,508 3,457,898
1,014,600 714,765 791,796
6,304,965 7,566,648 632,923
544,610 298,500 264,078
7,864,175 8,579,913 1,688,797
- - -
64,041 68,386 67,423
2,911,796 2,928,291 2,666,917
613,804 348,124 2,688,245
3,589,641 3,344,801 5,422,585
1,011,013 740,213 852,201
- 8,050 433,000
- 161,673 -
1,011,013 909,936 1,285,201
302,195 240,954 177,568
72,659 509 123,336
5,666,226 1,087,329 631,504
6,041,080 1,328,792 932,408
88,534 97,481 101,019
322,718 55,847 93,002
- 691,085 4,191,024
411,252 844,413 4,385,045
5,249 4,786 4,350
163,245 641,305 312,270
- - 337,463
168,494 646,091 654,083
25,609,771 20,052,984 19,678,166
CONTINUED
- 189 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET ASSETS - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST EIGHT FISCAL YEARS
Table 2-a
(CONTINUED)
2003 2004 2005 2006 2007
Business-type Activities:
Water and Sewer
Charges for Services $ 6,738,431 $ 7,206,833 $ 6,704,817 $ 8,057,402 $ 12,169,440
Operating Grants and Contributions - - 541,052 - -
Capital Grants and Contributions 2,506,457 868,581 994,303 12,576,490 5,015,603
Total Revenue 9,244,888 8,075,414 8,240,172 20,633,892 17,185,043
Parks & Recreation
Charges for Services 883,297 1,051,908 1,099,161 1,576,001 1,581,030
Operating Grants and Contributions - - 330,204 387,270 1,279,648
Capital Grants and Contributions 658,120 145,975 4,000 469,624 144,844
Total Revenue 1,541,417 1,197,883 1,433,365 2,432,895 3,005,522
Public Marinas
Charges for Services - - - - 108,100
Operating Grants and Contributions - - - - 92,348
Capital Grants and Contributions - - - - -
Total Revenue - - - - 200,448
Airport
Charges for Services 179,029 149,601 182,092 23,661 32,683
Operating Grants and Contributions - - - 4,448 1,112
Capital Grants and Contributions 41,190 23,636 69,595 6,368,327 667,166
Total Revenue 220,219 173,237 251,687 6,396,436 700,961
Total Business-type Activities Program Revenues 11,006,524 9,446,534 9,925,224 29,463,223 21,091,974
Total Primary Government Program Revenues 25,030,192 26,964,239 25,609,063 51,387,233 43,257,183
Net (Expense) Revenue (1)
Governmental activities ( 67,637,012) ( 73,296,676) ( 69,982,895) ( 69,974,138) ( 89,842,732)
Business-type activities 1,980,552 (59,497) ( 104,403) 19,112,404 9,283,481
Total Primary Government Net Expense $ ( 65,656,460) $ ( 73,356,173) $ ( 70,087,298) $ ( 50,861,734) $ ( 80,559,251)
General Revenues and Other Changes in Net Assets
Governmental Activities:
Taxes (2) $ 66,274,065 $ 75,137,137 $ 80,932,258 $ 87,157,631 $ 90,910,849
Grants and Contributions Not Restricted to Specific Programs - - 88,750 - -
Investment income 274,585 285,279 682,682 1,738,114 3,162,830
Gain (Loss) on Sale of Capital Assets 58,529 ( 452,997) - 2,983,087 13,605
Miscellaneous 608,688 724,069 1,063,336 997,032 1,928,398
Transfers In (Out) ( 554,940) (154,916) ( 3,055,362) 2,396,851 ( 1,070,297)
Special Items - Gain 832,718 215,000 - - -
Extraordinary Loss ( 24,430) - - ( 477,707) -
Total Governmental Activities 67,469,215 75,753,572 79,711,664 94,795,008 94,945,385
Business-type Activities:
Investment income 756,118 635,674 634,413 771,883 956,687
Gain (Loss) on Sale of Capital Assets ( 39,866) - - - 4,691
Miscellaneous 333,402 915,879 772,083 562,482 876,714
Transfers In (Out) 554,940 154,916 3,055,362 ( 2,396,851) 1,070,297
Special items - (Loss) - - ( 953,385) - -
Extraordinary Gain - 951,460 - - -
Total Business-type Activities 1,604,594 2,657,929 3,508,473 ( 1,062,486) 2,908,389
Total Primary Government 69,073,809 78,411,501 83,220,137 93,732,522 97,853,774
Change in Net Assets
Governmental activities ( 167,797) 2,456,896 9,728,769 24,820,870 5,102,653
Business-type activities 3,585,146 2,598,432 3,404,070 18,049,918 12,191,870
Total Primary Government $ 3,417,349 $ 5,055,328 $ 13,132,839 $ 42,870,788 $ 17,294,523
NOTES:
* Government-wide net asset information is reported on the accrual basis of accounting.
* Information prior to FY03 is not available, due to the FY03 implementation of GASB34.
* Source: Statement of Activities, pages 40-41.
(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.
- 190 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET ASSETS - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST EIGHT FISCAL YEARS
Table 2-a
(CONTINUED)
2008 2009 2010
$ 8,014,366 $ 7,695,100 $ 8,224,428
- - 98,492
2,584,371 682,935 208,115
10,598,737 8,378,035 8,531,035
1,459,725 1,526,244 1,633,203
55,953 45,824 41,838
95,890 69,068 289,895
1,611,568 1,641,136 1,964,936
105,900 100,250 62,600
3,710 - 29,017
- - 545,123
109,610 100,250 636,740
46,960 34,907 50,585
- - 33,922
382,945 289,112 1,519,810
429,905 324,019 1,604,317
12,749,820 10,443,440 12,737,028
38,359,591 30,496,424 32,415,194
( 94,488,619) (101,551,781) (105,800,170)
109,468 (3,342,461) (1,778,097)
$ ( 94,379,151) $ (104,894,242) $ (107,578,267)
$ 91,853,216 $ 95,530,316 $ 90,469,883
- - -
2,128,509 642,472 144,553
- 1,540,404 26,731
721,946 2,182,525 786,719
(11,581) ( 3,348,074) ( 559,331)
- - -
- - -
94,692,090 96,547,643 90,868,555
875,509 595,279 436,045
- - -
919,828 918,688 962,540
11,581 3,348,074 559,331
- - -
- - -
1,806,918 4,862,041 1,957,916
96,499,008 101,409,684 92,826,471
203,471 (5,004,138) (14,931,615)
1,916,386 1,519,580 179,819
$ 2,119,857 $ ( 3,484,558) $ (14,751,796)
- 191 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
GENERAL TAX REVENUES - GOVERNMENTAL ACTIVITIES
LAST EIGHT FISCAL YEARS
Table 2-b
2003 2004 2005 2006 2007
Local Property Taxes $ 36,257,473 $ 3 9,784,933 $ 4 2,121,614 $ 44,688,709 $ 4 6,185,050
Local Income Tax 23,471,091 27,738,830 2 9,957,555 3 1,959,096 3 5,346,494
Other Local Taxes 6 ,545,501 7,613,374 8 ,853,089 10,509,826 9 ,379,305
Total Taxes - Governmental Activities $ 6 6,274,065 $ 7 5,137,137 $ 8 0,932,258 $ 87,157,631 $ 9 0,910,849
2008 2009 2010
Local Property Taxes $ 50,021,587 $ 5 5,362,114 $ 5 9,267,240
Local Income Tax 35,700,111 34,834,937 2 5,715,247
Other Local Taxes 6 ,131,518 5,333,265 5 ,487,396
Total Taxes - Governmental Activities $ 9 1,853,216 $ 9 5,530,316 $ 9 0,469,883
NOTES:
* Government-wide general tax revenue information is reported on the accrual basis of accounting.
* Information prior to FY03 is not available, due to the FY03 implementation of GASB34.
* Source: Statement of Activities, pages 40-41.
- 192 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 3
2001 2002 2003 2004 2005
General Fund:
Reserved $ 326,382 $ 93,099 $ 5 ,578,543 $ 5,766,939 $ 5,705,316
Unreserved 6,486,698 7,426,819 3,269,461 5,669,161 4,104,926
Total General Fund 6,813,080 7,519,918 8,848,004 11,436,100 9,810,242
All Other Governmental Funds:
Reserved 16,870,563 9,032,415 9,570,304 12,329,623 15,075,521
Unreserved, reported in:
Capital Projects Fund 10,340,077 12,097,123 6,465,484 11,835,783 11,706,521
Special Revenue Funds 3,046,815 3,127,711 2,972,713 2,698,617 3,156,479
Total All Other Governmental Funds 30,257,455 24,257,249 1 9,008,501 26,864,023 29,938,521
Total All Governmental Funds $ 37,070,535 $ 31,777,167 $ 2 7,856,505 $ 38,300,123 $ 39,748,763
2006 2007 2008 2009 2010
General Fund:
Reserved $ 6,169,255 $ 7,140,303 $ 8 ,948,231 $ 8,643,600 $ 7,734,692
Unreserved 14,944,399 15,302,827 3,972,847 6,381,843 6,296,418
Total General Fund 21,113,654 22,443,130 1 2,921,078 15,025,443 14,031,110
All Other Governmental Funds:
Reserved 13,751,478 20,060,988 1 6,706,954 17,007,368 15,153,381
Unreserved, reported in:
Capital Projects Funds 13,579,649 17,618,012 1 4,409,216 1,723,066 12,538,916
Special Revenue Funds 2,810,027 3,019,522 2,185,304 2,751,120 7,842,939
Total All Other Governmental Funds 30,141,154 40,698,522 3 3,301,474 21,481,554 35,535,236
Total All Governmental Funds $ 51,254,808 $ 63,141,652 $ 4 6,222,552 $ 36,506,997 $ 49,566,346
NOTES:
* Fund balance information for governmental funds is reported on the modified accrual basis of accounting.
* Source: Balance Sheet, pages 42-43.
- 193 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
2001 2002 2003 2004 2005
Revenues
Taxes
Local Property Taxes $ 31,470,442 $ 33,760,455 $ 36,238,606 $ 39,771,711 $ 42,191,297
Local Income Taxes 21,498,495 23,217,162 23,517,175 26,765,483 28,237,534
Other Local Taxes 2,961,474 3,987,371 6,545,501 7,613,374 8,853,089
State Shared Taxes 1,890,539 1,941,971 4,424,763 3,660,145 4,528,046
Licenses and Permits 1,657,245 2,152,720 1,410,491 647,633 829,784
Intergovernmental 8,588,986 10,471,381 6,351,125 9,261,854 6,049,496
Build America Bond (BAB) Interest Reimbursement - - - - -
Charges for Current Services 1,279,623 1,460,330 1,248,229 3,464,771 3,394,626
Fines and Forfeitures 17,299 15,861 29,443 38,798 48,654
Special Assessments 51,174 46,419 43,067 (7,528) -
Investment Income 2,169,485 1,042,194 465,164 410,845 907,275
Donations - - 81,350 93,178 104,093
Miscellaneous (1) 823,059 1,020,802 853,309 954,621 1,567,883
Total Revenues 72,407,821 79,116,666 81,208,223 92,674,885 96,711,777
Expenditures
Current
General Government (2) 5,493,808 6,139,990 7,729,416 8,851,440 8,933,985
Public Safety 8,190,088 8,726,365 9,829,451 11,970,575 13,199,057
Public Works 5,793,807 6,126,407 6,790,032 7,872,914 9,055,472
Health 931,775 1,208,954 807,489 1,101,713 1,261,488
Social Services 2,399,938 3,105,830 4,303,930 4,922,755 4,367,736
Education (3) 37,222,432 39,713,371 43,050,433 46,689,001 40,421,109
Parks and Recreation 1,605,717 1,727,072 2,616,946 6,266,051 2,481,296
Library (4) 904,151 935,439 951,939 997,043 1,049,612
Conservation of Natural Resources 459,420 880,299 880,058 565,218 578,426
Economic/Community Development 1,246,768 1,267,138 1,848,707 1,809,329 1,552,689
Miscellaneous - - - - -
Capital Outlay 9,629,250 8,001,582 1,488,726 1,173,687 1,280,650
Debt Service
Principal 6,666,033 2,920,206 2,690,928 4,029,332 5,928,559
Debt Issuance Costs - - - - -
Interest and Fiscal Charges 2,313,472 2,698,380 2,695,664 2,780,312 2,555,411
Total Expenditures 82,856,659 83,451,033 85,683,719 99,029,370 92,665,490
Excess (Deficiency) of Revenues over (under) Expenditures (10,448,838) (4,334,367) (4,475,496) (6,354,485) 4,046,287
Other Financing Sources (Uses)
Issuance of Debt 31,175,000 6,310,000 - 16,602,500 30,026,336
Re-allocation of 2006 Bonds - - - - -
Bond Premiums - - - - 1,069,864
Bond Issuance Costs - - - - (159,647)
Proceeds of Capital Asset Disposals - - 98,000 135,520 154,787
Insurance Proceeds - - - - -
Capital Contributions - Developer - - - - 88,750
Transfers In (5) 5,616,405 6,137,635 3,806,476 9,647,582 10,661,440
Transfers (Out) (6) (6,067,751) (7,115,841) (4,361,416) (9,802,498) (13,716,802)
Defeasance of debt - (6,290,795) - - (30,722,375)
Total Other Financing Sources (Uses) 30,723,654 (959,001) (456,940) 16,583,104 (2,597,647)
Special and Extraordinary Items
Special Items - - 885,140 215,000 -
Extraordinary Gains (Losses) - - (24,430) - -
Total Special Items and Extraordinary Gains (Losses) - - 860,710 215,000 -
Net Increase (Decrease) in Fund Balances $ 20,274,816 $ (5,293,368) $ (4,071,726) $ 10,443,619 $ 1,448,640
Debt service as a percentage of non-capital expenditures (7, 8) 12.03% 7.59% 6.67% 7.40% 9.49%
NOTES:
* Governmental fund information is reported on the modified accrual basis of accounting.
* Source: Statement of Revenues, Expenditures and Changes in Fund Balances, pages 46-47,
and the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities, pages 48-49.
(1) For FY02 and prior, "Miscellaneous Revenue" includes amounts previously classified as "Operating Transfers in" from Component Units.
(2) For all fiscal years, "General Government" includes amounts previously classified as "Miscellaneous," "Intergovernmental" and/or "Contingency."
(3) For FY02 and prior, "Education Expenditures" includes amounts previously classified as "Operating Transfers out" to Component Unit (Board of Education).
(4) For FY02 and prior, "Library Expenditures" includes amounts previously classified as "Operating Transfers out" to Component Unit (Library).
(5) For FY02 and prior, "Transfers In" exclude amounts previously classified as "Operating Transfers in" from Component Units.
(6) For FY02 and prior, "Transfers Out" exclude amounts previously classified as "Operating Transfers out" to Component Units (Board of Education and Library).
(7) Debt service represents debt service principal and interest expenditures and excludes amortization of debt issuance costs as presented above.
(8) Noncapital expenditures represents Total Expenditures above, less expenditures of the General and Roads Capital Project Funds and governmental
capital outlay that resulted in capital assets - see specific line items as part of the reconciliation on page 48.
- 194 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
(CONTINUED)
2006 2007 2008 2009 2010
$ 44,657,603 $ 46,208,342 $ 50,007,054 $ 55,374,053 $ 59,242,742
31,633,987 34,980,663 34,767,725 35,988,334 29,647,125
10,509,826 9,379,305 6,131,518 5,333,265 5,487,396
4,233,139 5,125,419 5,306,763 7,591,829 508,138
824,917 895,931 890,821 874,639 863,782
11,476,325 10,661,130 12,199,511 8,049,695 12,061,066
- - - - 193,567
4,864,374 3,806,563 4,049,902 3,326,696 3,396,080
77,008 239,194 1,759,370 115,658 258,937
- - - - -
1,738,139 3,162,830 2,128,509 642,472 144,553
98,610 74,694 247,002 76,867 140,731
1,346,669 1,853,706 719,067 2,182,525 786,719
111,460,597 116,387,777 118,207,242 119,556,033 112,730,836
9,516,299 8,772,229 10,128,699 10,841,479 10,608,976
16,356,949 17,918,740 19,292,661 20,483,238 21,344,575
9,168,186 9,167,362 9,182,618 8,678,715 7,671,352
1,355,057 1,428,395 1,430,670 1,572,848 1,637,101
4,294,781 4,260,927 4,747,491 5,029,493 4,767,647
42,346,958 56,163,966 58,086,283 53,348,513 53,545,597
9,096,593 2,809,748 3,083,038 3,145,367 3,055,335
1,144,622 1,242,573 1,247,108 1,390,398 1,424,078
508,606 483,810 2,177,820 2,445,352 5,263,577
1,558,978 3,188,316 3,513,153 1,968,587 1,847,195
- 915,542 731,771 706,792 1,373,090
1,049,361 14,291,416 13,676,569 8,594,972 7,868,741
3,677,307 3,795,769 4,888,405 5,089,347 4,948,144
- 236,899 3,972 (423) 145,884
2,569,650 2,257,928 3,147,529 2,778,490 3,114,505
102,643,347 126,933,620 135,337,787 126,073,168 128,615,797
8,817,250 (10,545,843) (17,130,545) (6,517,135) (15,884,961)
- 23,219,790 510,617 122,780 29,299,154
- - (345,955) - -
- 236,899 3,972 (423) 157,800
- - - - -
1,176,860 88,535 45,494 64,089 30,861
- - 8,898 44,907 15,826
- - - - -
8,578,135 13,131,736 17,014,307 5,449,499 18,184,911
(6,181,284) (14,202,033) (17,025,888) (8,879,272) (18,744,242)
- - - - -
3,573,711 22,474,927 211,445 (3,198,420) 28,944,310
- - - - -
(477,707) (42,242) - - -
(477,707) (42,242) - - -
$ 11,913,254 $ 11,886,842 $ (16,919,100) $ (9,715,555) $ 13,059,349
6.88% 5.26% 6.61% 6.77% 6.27%
- 195 -

Local artisans practice their craft and sell one of a kind pieces at fairs throughout the year.

QUEEN ANNE'S COUNTY, MARYLAND
ASSESSED VALUE OF TAXABLE AND EXEMPT PROPERTY
LAST TEN FISCAL YEARS
Table 5
Real Property (1) (3) Personal Property Total Total
Total Public Utility Taxable Taxable and
Fiscal Commercial Residential (2) Total Direct Assessed Assessed Exempt Exempt
Year Assessed Value Assessed Value Assessed Value Tax Rate (4) Value (3) (5) Value Property Property
2001 $ 6 62,743,925 $ 2,401,723,715 $ 3,064,467,640 $ 0.976 $ 69,582,528 $ 3,134,050,168 $ 277,039,075 $ 3 ,411,089,243
2002 6 92,030,001 2,607,616,738 3,299,646,739 0.976 70,150,240 3,369,796,979 2 74,858,885 3 ,644,655,864
2003 7 28,512,663 2,858,309,623 3,586,822,286 0.976 64,201,229 3,651,023,515 2 76,953,744 3 ,927,977,259
2004 7 71,054,050 3,208,049,692 3,979,103,742 0.976 59,945,270 4,039,049,012 2 97,843,389 4 ,336,892,401
2005 8 49,272,884 3,690,010,496 4,539,283,380 0.926 57,382,490 4,596,665,870 3 30,840,259 4 ,927,506,129
2006 9 50,694,704 4,051,000,772 5,001,695,476 0.870 59,360,390 5,061,055,866 3 69,542,935 5 ,430,598,801
2007 1 ,104,093,458 4,526,502,291 5,630,595,749 0.800 63,168,480 5,693,764,229 4 19,303,486 6 ,113,067,715
2008 1 ,291,356,759 5,045,464,776 6,336,821,535 0.770 61,729,010 6,398,550,545 4 74,798,401 6 ,873,348,946
2009 1 ,503,024,419 5,518,534,961 7,021,559,380 0.770 61,513,370 7,083,072,750 5 47,163,868 7 ,630,236,618
2010 1 ,606,785,131 5,911,287,556 7,518,072,687 0.770 62,858,590 7,580,931,277 5 96,219,654 8 ,177,150,931
NOTES:
* Tax exempt property is included for purposes of calculating total assessed value, which is used on Table 12-a.
(1) The State of Maryland, under Chapter 80 of the Acts of 2000, required that assessed values of real property be based on full cash
value assessments as of October 1, 2000. Prior to that time, assessed values of real property were based on 40% of full cash
value. Fiscal year 2001 has been restated to full cash value for comparison purposes.
(2) 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.
(3) 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.
(4) See Table 6-a for real property direct tax rates. Tax Rates are applied per $100 of assessed value.
(5) The personal property tax rate for Queen Anne's County is zero.
Source: State of Maryland, Department of Assessments and Taxation.
- 197 -

QUEEN ANNE'S COUNTY, MARYLAND
REAL PROPERTY TAX RATES - COUNTY DIRECT RATE
LAST TEN FISCAL YEARS
Table 6-a
County
Fiscal Direct
Year Rate (1, 2)
2001 $ 0 .976
2002 0 .976
2003 0 .976
2004 0 .976
2005 0 .926
2006 0 .870
2007 0 .800
2008 0 .770
2009 0 .770
2010 0 .770
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) The State of Maryland, under Chapter 80 of the Acts of 2000, required that assessed
values of real property be based on full cash value assessments as of October 1, 2000.
Prior to that time, assessed values of real property were based on 40% of full cash value.
Tax rates for fiscal year 2001 have been restated to full cash value for comparison
purposes.
(2) Tax Rates are applied per $100 of assessed value.
- 198 -

QUEEN ANNE'S COUNTY, MARYLAND
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 (1)
2001 $ 0 .060
2002 0 .060
2003 0 .060
2004 0 .060
2005 0 .060
2006 0 .060
2007 0 .060
2008 0 .060
2009 0 .060
2010 0 .060
NOTES:
* Tax rates are per $100 of assessed value.
* The personal property tax rate for Queen Anne's County is zero.
(1) The State of Maryland, under Chapter 80 of the Acts of 2000, required that assessed
values of real property be based on full cash value assessments as of October 1, 2000.
Prior to that time, assessed values of real property were based on 40% of full cash value.
Tax rates for fiscal year 2001 have been restated to full cash value for comparison
purposes.
- 199 -

QUEEN ANNE'S COUNTY, MARYLAND
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
2001 $ 0 .380 $ 0 .100 $ 0.340 $ 0 .280 $ 0 .180
2002 0 .480 0 .100 0.340 0 .280 0 .210
2003 0 .480 0 .100 0.340 0 .280 0 .180
2004 0 .480 0 .100 0.340 0 .280 0 .180
2005 0 .480 0 .100 0.340 0 .280 0 .180
2006 0 .480 0 .100 0.340 0 .280 0 .180
2007 0 .470 0 .100 0.340 0 .280 0 .180
2008 0 .430 0 .100 0.340 0 .280 0 .180
2009 0 .395 0 .100 0.340 0 .280 0 .180
2010 0 .380 0 .100 0.340 0 .280 0 .180
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.
(1) The State of Maryland, under Chapter 80 of the Acts of 2000, required that assessed values of real
property be based on full cash value assessments as of October 1, 2000. Prior to that time, assessed
values of real property were based on 40% of full cash value. Tax rates for fiscal year 2001 have been
restated to full cash value for comparison purposes.
- 200 -

QUEEN ANNE'S COUNTY, MARYLAND
REAL PROPERTY TAX RATES - OVERLAPPING GOVERNMENTS - TOWNS
LAST TEN FISCAL YEARS
Table 6-c
(CONTINUED)
Town of Town of Town of
Queenstown Sudlersville Templeville
$ 0.200 $ 0 .188 $ 0.164
0.200 0 .185 0 .161
0.200 0 .176 0 .142
0.200 0 .176 0 .142
0.200 0 .167 0 .133
0.200 0 .167 0 .122
0.200 0 .167 0 .252
0.200 0 .167 0 .252
0.200 0 .167 0 .360
0.181 0 .167 0 .360
- 201 -

QUEEN ANNE'S COUNTY, MARYLAND
TEN HIGHEST COMMERCIAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND NINE YEARS AGO
Table 7
For the Fiscal Year Ended June 30, 2010
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 51,790,100 0.68 %
KRM Development Corporation 36,943,231 0.49
White's Heritage Partners 23,804,738 0.31
Great American Life Insurance Company 17,689,900 0.23
Washington Brick and Terra Cotta Company 14,609,400 0.19
Waterford Centreville, LLC 14,047,640 0.19
Beach Harbor Campers Cooperative Inc 13,815,890 0.18
Mears Point Association 13,525,310 0.18
Reliable Development Company 12,996,983 0.17
JSE Investment 12,639,680 0.17
Total $ 211,862,872 2.79 %
Total Assessable Base $ 7 ,580,931,277 1 00.00 %
For the Fiscal Year Ended June 30, 2001
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 32,589,925 1.04 %
KRM Development 10,890,200 0.35
Washington Brick & Terra Cotta Company 8,829,475 0.28
Mears Point Association 8,143,275 0.26
Bay Bridge Limited 6,162,600 0.20
TC Shopping Center 6,071,875 0.19
Gateway Partnership 6,000,000 0.19
Pasquale Didonato 5,694,575 0.18
C&E Enterprises 5,320,425 0.17
Hunters Oak LLC 5,296,500 0.17
Total $ 94,998,850 3.03 %
Total Assessable Base $ 3,134,050,168 1 00.00 %
NOTES:
(1) The State of Maryland, under Chapter 80 of the Acts of 2000, required that assessed values of real property be
based on full cash value assessments as of October 1, 2000. Prior to that time, assessed values of real property
were based on 40% of full cash value. Fiscal year 2001 has been restated to full cash value for comparison purposes.
Source: State of Maryland Department of Assessments and Taxation
- 202 -

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
2001 $ 29,673,499 $ 29,593,289 99.73% $ 80,210 $ 29,673,499 100.00%
2002 31,834,978 31,759,768 99.76% 75,210 31,834,978 100.00%
2003 34,534,049 34,452,221 99.76% 81,828 34,534,049 100.00%
2004 38,135,222 38,052,633 99.78% 82,589 38,135,222 100.00%
2005 40,608,914 40,542,167 99.84% 66,747 40,608,914 100.00%
2006 43,208,732 43,107,941 99.77% 100,791 43,208,732 100.00%
2007 44,500,414 44,401,745 99.78% 97,305 44,499,050 100.00%
2008 48,575,431 48,505,180 99.86% 67,708 48,572,888 99.99%
2009 53,839,023 53,756,369 99.85% 66,659 53,823,028 99.97%
2010 57,788,231 57,720,564 99.88% - 57,720,564 99.88%
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.
- 203 -

QUEEN ANNE'S COUNTY, MARYLAND
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Table 9
Governmental Activities
General Total
Fiscal Obligation Notes Capital Governmental
Year Bonds Payable Leases Activities
2001 $ 5 7,620,000 $ 1 ,042,742 $ 46,304 $ 5 8,709,046
2002 5 5,490,000 5 93,840 - 5 6,083,840
2003 5 2,800,000 4 57,912 - 5 3,257,912
2004 6 2,467,858 3 ,245,500 114,331 6 5,827,689
2005 6 0,689,541 6 84,000 - 6 1,373,541
2006 5 6,890,501 6 22,500 - 5 7,513,001
2007 7 5,938,286 5 61,000 248,460 7 6,747,746
2008 7 0,752,345 8 22,617 202,978 7 1,777,940
2009 6 5,420,921 9 13,183 155,482 6 6,489,586
2010 8 8,859,439 1 ,652,082 105,884 9 0,617,405
Business-type Activities Ratios
Debt to
General Total Total Total Outstanding
Fiscal Obligation Notes Capital Business-type Primary Personal Debt per
Year Bonds Payable Leases Activities Government Income (1) Capita (1)
2001 $ 8 ,515,000 $ 7 ,410,320 $ 2,000 $ 15,927,320 $ 74,636,366 5.41% $ 1,820
2002 7 ,825,000 6 ,912,388 - 1 4,737,388 70,821,228 4.85% 1,707
2003 6 ,865,000 6 ,402,363 - 1 3,267,363 66,525,275 4.27% 1,584
2004 5 ,825,000 5 ,879,764 - 1 1,704,764 77,532,453 4.90% 1,789
2005 5 ,383,663 5 ,343,775 - 1 0,727,438 72,100,979 4.50% 1,624
2006 4 ,943,663 1 4,580,581 - 1 9,524,244 77,037,245 6.91% 1,695
2007 4 ,608,851 2 2,516,916 - 2 7,125,767 103,873,513 5.58% 2,246
2008 4 ,094,485 2 1,058,076 - 2 5,152,561 96,930,501 4.82% 2,024
2009 3 ,573,768 1 9,624,863 - 2 3,198,631 89,688,217 4.24% 1,905
2010 3 ,535,182 1 8,166,367 - 2 1,701,549 112,318,954 6.52% 2,309
NOTES:
* Amounts for 2001 and 2002 represent debt relating to total governmental funds (from the General Long-Term
Obligations Account Group) and total enterprise funds, since the reporting of governmental activities and
business-type activities in government-wide financial statements was implemented in FY03.
(1) See Table 14 for personal income and population data, which are used in calculating these ratios.
- 204 -

QUEEN ANNE'S COUNTY, MARYLAND
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)
2001 $ 66,135,000 2.11% $ 1,613
2002 63,315,000 1.88% 1 ,526
2003 59,665,000 1.63% 1 ,421
2004 68,292,858 1.69% 1 ,575
2005 66,073,204 1.44% 1 ,488
2006 61,834,164 1.22% 1 ,360
2007 80,547,137 1.41% 1 ,742
2008 74,846,830 1.17% 1 ,563
2009 68,994,689 0.97% 1 ,465
2010 92,394,621 1.22% 1 ,899
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.
- 205 -

Sailing on the Bay is a favorite pastime.

QUEEN ANNE'S COUNTY, MARYLAND
COMPUTATION OF NET DIRECT AND OVERLAPPING DEBT
AS OF JUNE 30, 2010
Table 11
Name of Jurisdiction Gross Debt
Queen Anne's County:
County Government
Total Net Direct Debt (1) $ 112,318,954
Towns: (2)
Centreville 14,871,511
Millington 1,322,532
Queenstown 304,316
Sudlersville 5 35,735
Total Net Overlapping Debt 17,034,094
Total Net Direct and Overlapping Debt $ 129,353,048
NOTES:
(1) Net direct debt of the County includes general obligation bonds, notes payable, and capital leases. See Table 9.
Overlapping debt is the debt of other governmental entities located within the County that is
payable in whole or in part by taxpayers of the County.
(2) Entities are located wholly within Queen Anne's County. Debt information reported by municipalities.
- 207 -

QUEEN ANNE'S COUNTY, MARYLAND
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
2001 2002 2003
Computation of Legal Debt Margin - for Queen Anne's County
Other than Debt related to the Sanitary District:
Authorized debt limit under Title 5 (Subtitle 4) (1) $ 8,000,000 $ 8,000,000 $ 8,000,000
Authorized bonded debt under specific public laws
Enterprise Funds, excluding Sanitary District (5) 1,715,000 1,625,000 1,535,000
General Obligation Debt (5) 57,620,000 55,490,000 52,800,000
Subtotal 59,335,000 57,115,000 54,335,000
Total authorized debt under Title 5 and specific public laws 67,335,000 65,115,000 62,335,000
LESS Outstanding bonds, notes payable, and capital leases (6) 74,504,928 70,508,807 66,266,872
Less: Sanitary District debt (5) 14,003,929 12,731,829 11,412,635
Subtotal 60,500,999 57,776,978 54,854,237
Legal Debt Margin - Other than the Sanitary District $ 6,834,001 $ 7,338,022 $ 7,480,763
Debt related to the Sanitary District Proprietary Fund:
Total taxable assessed value (3, 4) $ 3,134,050,168 $ 3,369,796,979 $ 3,651,023,515
Plus exempt property (3, 4) 277,039,075 274,858,885 276,953,744
Total assessed value $ 3,411,089,243 $ 3,644,655,864 $ 3,927,977,259
Debt Limit - 6% of total assessed value (2, 3) $ 204,665,355 $ 218,679,352 $ 235,678,636
LESS Sanitary District 14,003,929 12,731,829 11,412,635
Less: Restricted Cash and Investments in the
Debt Service Fund available for payment of principal 5,480,724 5,141,449 4,264,878
8,523,205 7,590,380 7,147,757
Legal Debt Margin - Sanitary District $ 196,142,150 $ 211,088,972 $ 228,530,879
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) Prior to June 1, 2001, the legal debt limit was 15 percent of the assessable base (real and personal property) of the County. During that time,
the assessable base for real property was 40 percent of the full assessed value. Effective June 1, 2001, real property in the State of Maryland
began being assessed at 100 percent of full assessed value instead of the previous 40 percent assessment method. Also effective June 1, 2001,
the section of the Code referred to above was amended in conjunction with the real property assessment change. Under the amendment,
the legal debt margin is a total of 6 percent of the assessable base (presented at 100 percent) of real property of the County and 15 percent of
the County's assessable base of personal property and operating real property.
Note that Fiscal Year 2001 has been restated to full cash value and the legal debt margin has been calculated at 6% for for all property
and all years for comparison purposes.
(4) See Table 5.
(5) See Note 9, Section B.
(6) See Table 9.
- 208 -

QUEEN ANNE'S COUNTY, MARYLAND
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
(CONTINUED)
2004 2005 2006 2007 2008 2009 2010
$ 8,000,000 $ 8,000,000 $ 8,000,000 $ 8,000,000 $ 8,000,000 $ 8,000,000 $ 8,000,000
1,440,000 1,413,663 1,413,663 1,538,851 1,509,485 1,493,768 1,905,182
62,467,858 60,689,541 56,890,501 75,938,286 70,752,345 65,420,921 88,859,439
63,907,858 62,103,204 58,304,164 77,477,137 72,261,830 66,914,689 90,764,621
71,907,858 70,103,204 66,304,164 85,477,137 80,261,830 74,914,689 98,764,621
77,328,067 72,100,979 77,037,245 103,625,053 96,727,523 89,688,217 112,318,954
10,005,867 9,266,078 18,069,698 25,552,847 23,615,821 21,684,421 19,782,739
67,322,200 62,834,901 58,967,547 78,072,206 73,111,702 68,003,796 92,536,215
$ 4,585,658 $ 7,268,303 $ 7,336,617 $ 7,404,931 $ 7,150,128 $ 6,910,893 $ 6,228,406
$ 4,039,049,012 $ 4,596,665,870 $ 5,061,055,866 $ 5,693,764,229 $ 6,398,550,545 $ 7,083,072,750 $ 7,580,931,277
297,843,389 330,840,259 369,542,935 419,303,486 474,798,401 547,163,868 596,219,654
$ 4,336,892,401 $ 4,927,506,129 $ 5,430,598,801 $ 6,113,067,715 $ 6,873,348,946 $ 7,630,236,618 $ 8,177,150,931
$ 260,213,544 $ 295,650,368 $ 325,835,928 $ 366,784,063 $ 412,400,937 $ 457,814,197 $ 490,629,056
10,005,867 9,266,078 18,069,698 25,552,847 23,615,821 21,684,421 19,782,739
4,289,452 4,105,842 3,940,626 4,746,865 4,551,821 4,180,188 3,925,026
5,716,415 5,160,236 14,129,072 20,805,982 19,064,000 17,504,233 15,857,713
$ 254,497,129 $ 290,490,132 $ 311,706,856 $ 345,978,081 $ 393,336,937 $ 440,309,964 $ 474,771,343
- 209 -

QUEEN ANNE'S COUNTY, MARYLAND
COMPUTATION OF LOCAL DEBT LIMIT
LAST TWO FISCAL YEARS
Table 12-b
2009 2010
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. 09-13, as adopted August, 2009.
CALCULATION PER FIRST FINANCIAL CRITERIA:
The sum of all outstanding and new general obligation and/or
bonded debt is 2.5% or less of the total taxable assessed base.
Total Taxable Assessed Base (1) $ 7,083,072,750 $ 7,580,931,277
2.5% 2.5%
2.5% of Total Taxable Assessed Base $ 177,076,819 $ 189,523,282
LESS Outstanding and New General Obligation Debt (2) (3)
Enterprise Funds' Debt - Bonds and Notes $ 23,198,631 $ 21,701,549
General Obligation Debt - Bonds and Notes 6 6,334,104 9 0,511,521
Total Outstanding and New General Obligation Debt $ 89,532,735 $ 112,213,070
2.5% of Total Taxable Assessed Base in Excess of
Total Outstanding and New General Obligation Debt $ 87,544,084 $ 77,310,212
CALCULATION PER SECOND FINANCIAL CRITERIA:
The sum of all outstanding and new general obligation and/or
bonded debt is $3,000 or less per capita.
Total County Population (4) 47,091 48,650
$3,000 Per Capita $ 3,000 $ 3,000
$ 141,273,000 $ 145,950,000
LESS Outstanding and New General Obligation Debt (1) $ 89,532,735 $ 112,213,070
$3,000 Per Capita in Excess of
Total Outstanding and New General Obligation Debt $ 51,740,265 $ 33,736,930
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 August, 2009, as described in Note 9 F, Queen Anne’s County adopted Resolution No. 09-13, thereby establishing
a local debt policy in compliance with Article 95, Section 22F of the Annotated Code of Maryland. For comparative
purposes, this policy has been calculated retroactively for FY09 data, as well as for FY10 data.
This policy requires that the County’s Director of Budget and Finance take the following steps:
(a) prepare a five-year capital project plan each year;
(b) propose an amount to be transferred from the General Fund operating balance to the General Capital Projects
Fund to serve as pay-as-you-go funding in the latter Fund, in order to lessen the need for future County debt;
(c) limit the County’s non-bonded indebtedness to $8.0 million for general operating expenses or capital
improvements;
(d) certify that the sum of outstanding general bonded debt and any new general obligation debt is 2.5% or less
of the total taxable assessed base and is $3,000 or less per capita; and
(e) review and revise this Debt Policy as necessary, but no later than September 1, 2012.
- 210 -

QUEEN ANNE'S COUNTY, MARYLAND
PRINCIPAL EMPLOYERS
CURRENT FISCAL YEAR AND NINE YEARS AGO
Table 13
For the Fiscal Year Ended June 30, 2010
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 982 1 9.31%
Queen Anne's County Government 507 2 4.81%
S.E.W. Friel 275 3 2.61%
Paul Reed Smith Guitars 244 4 2.31%
Chesapeake College 225 5 2.13%
Safeway 180 6 1.71%
River Plantation 175 7 1.66%
Genesis Healthcare 150 8 1.42%
Harris Seafood Company 150 9 1.42%
Acme Markets 149 10 1.41%
Total 3,037 28.79%
For the Fiscal Year Ended June 30, 2001
Percentage of
Total County
Employer Employees Rank Employment
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
NOTES:
* N/A - Information for 2001 is unavailble.
Source: Queen Anne's County Economic Development Office; Tables 15 and 17.
- 211 -

QUEEN ANNE'S COUNTY, MARYLAND
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)
2001 41,000 $ 1,379,035,000 $ 33,635 3.60% 7 ,239
2002 41,500 1,459,638,000 35,172 3.30% 7 ,266
2003 42,000 1,558,032,000 37,096 3.50% 7 ,457
2004 43,350 1,582,275,000 36,500 3.10% 7 ,530
2005 44,392 1 ,601,707,752 36,081 3.50% 7 ,649
2006 45,450 1 ,114,661,250 24,525 3.50% 7 ,162
2007 46,241 1 ,861,755,142 40,262 3.50% 7 ,774
2008 47,886 2 ,009,392,332 41,962 4.00% 7 ,790
2009 47,091 2 ,113,538,262 44,882 6.70% 7 ,774
2010 48,650 1 ,721,674,850 35,389 6.50% 7 ,723
NOTES:
(1) Source: Queen Anne's County Division of Land Use and Zoning
(2) Personal income derived by multiplying population by per capita income.
(3) Source: Maryland Department of Business and Economic Development
(4) Source: Queen Anne's County Board of Education.
- 212 -

Jack-be-Littles in abundance for Fall decorating!

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME EQUIVALENTS
LAST TEN FISCAL YEARS
Table 15
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Number of Exempt Employees 3 1 3 1 3 3 3 3 3 5 3 5 3 6 31 29 29
Number of Full Time Employees 3 73 3 94 3 99 413 4 20 4 32 470 481 475 461
Number of Part Time Employees (FTE) 2 4 2 4 2 9 2 1 2 1 2 3 2 5 20 18 17
Total County Government Employees 4 28 4 49 4 61 467 4 76 4 90 531 532 522 507
NOTES:
Source: Queen Anne's County Finance Office.
- 214 -

QUEEN ANNE'S COUNTY, MARYLAND
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME ONLY BY FUNCTION
LAST FOUR FISCAL YEARS
Table 16
2007 2008 2009 2010
Governmental Activities:
General Government 90 9 0 8 9 8 7
Public Safety:
Police 49 5 3 5 2 5 0
Fire - Emergency Management Services 69 6 8 6 9 6 7
Corrections 37 3 8 4 2 4 2
Animal Services 11 1 1 8 8
Public Works 87 9 1 8 5 7 9
Health 1 1 1 1
Social Services 40 3 8 3 8 3 7
Parks & Recreation 39 4 0 3 8 3 8
Conservation of Natural Resources 3 3 3 3
Economic/Community Development 12 1 2 1 0 9
Total Governmental Activities 438 4 45 4 35 4 21
Business-Type Activities:
Sanitary District 47 4 6 4 5 4 5
Bay Bridge Airport 3 3 3 3
Public Landings 3 3 3 3
Property Management 5 4 7 7
Total Business-Type Activities 58 5 6 5 8 5 8
Component Unit:
Public Housing Authority 10 1 1 1 1 1 1
Total Full-Time County Employees 506 5 12 5 04 4 90
NOTES:
Only full-time County employees are represented in this Table; data relating to full-time equivalents
for part-time employees is not available at this time.
County employees include the Public Housing Authority but exclude other component units. Therefore,
no employees are listed for the Education or Library functions, which relate to the Board of Education
and the Queen Anne's County Free Library component units, respectively.
As data becomes available in future years, this Table will be updated to include data for up to ten fiscal years.
Source: Queen Anne's County Finance Office.
- 215 -

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Table 17
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Governmental Activities:
General Government:
Planning & Zoning:
Number of commercial permits issued 1 24 1 18 219 295 2 72 2 56 235 2 3 40 35
Number of residential permits issued:
Single Family Permits 3 74 4 06 3 26 271 2 47 2 24 160 1 38 90 153
Multi Family Permits 3 3 1 6 3 6 - 1 - - - 13 28
Renovations and Additions Permits 519 5 50 6 78 745 6 80 6 08 541 5 39 324 304
Total residential permits issued 926 9 72 1,040 1,016 928 8 32 701 6 77 427 485
Public Safety:
Fire and Rescue:
Number of volunteer members 450 5 77 650 649 6 30 6 30 600 6 63 663 689
Police:
Uniformed Police Officers 4 2 4 2 4 7 5 0 4 9 4 9 4 9 5 3 54 54
Number of law violations:
Physical arrests 1,190 987 1,021 1,112 1,536 1,115 1,413 1,373 1,429 917
Traffic violations 3,227 1,904 2,322 4,363 5,307 4,962 5,310 5,745 8,276 6,183
Detention Center:
Detention Center Officers 2 8 2 9 2 9 3 2 3 0 3 1 3 3 3 5 37 39
Average yearly prison population 8 6 8 0 9 2 9 2 9 6 9 9 113 1 12 97 102
Public Works:
Wastewater Treated - Daily (mgd) 1 .5 1 .5 1 .6 1 .5 1 .5 1 .5 1 .5 1 .6 1.7 2.1
Education:
Number of Personnel
Teachers 4 46 4 47 4 58 459 4 79 4 96 501 5 22 528 533
Administrators 3 7 4 1 3 9 3 9 3 9 3 9 4 0 4 0 38 37
Support 265 3 03 3 03 302 3 21 3 18 327 3 38 338 336
Other 5 6 4 6 4 6 4 3 5 3 5 9 5 5 7 7 76 76
Number of Students 7,239 7,266 7,457 7,530 7,649 7,162 7,774 7,790 7,774 7,723
Number of High School Graduates N/A N/A N/A N/A N/A 514 563 5 60 590 562
NOTES:
N/A - Data not readily available, or not available in a manner consistent with this display.
Source: Various County departments.
- 216 -

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Table 18
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Governmental Activities:
Public Safety:
Fire and Rescue:
Number of volunteer stations 9 9 9 9 1 0 1 0 1 0 1 0 10 10
Equipment:
Engines 1 9 1 7 1 3 1 6 1 7 1 7 1 6 16 16 17
Tankers 9 8 8 7 7 7 9 9 9 9
Aerial Units 3 4 3 4 4 4 4 4 4 5
Rescue Units 4 4 5 5 5 5 5 6 6 7
Brush Units 8 8 7 7 7 7 8 8 8 8
Air Units (MD State Police) 1 1 8 8 1 1 1 3 3 -
Boats 4 6 5 5 5 5 3 1 1 5
Ambulance/Medic Units 1 6 2 1 1 5 1 5 1 5 18 2 0 16 16 17
Cars/Other 1 1 1 9 1 5 2 0 2 0 20 1 6 17 17 22
Police:
Number of Stations 1 1 1 1 1 1 1 1 1 1
Number of Vehicles
Patrol 4 2 3 8 4 8 5 8 4 3 3 4 5 4 5 7 64 60
Other 8 8 2 1 6 1 5 2 6 1 5 7 13 17
Detention Center
Capacity 104 1 04 1 04 1 04 104 1 04 104 1 04 104 148
Public Works:
County Maintained Roads and Streets
Paved (miles) 508 5 10 5 24 5 22 524 5 34 536 5 30 539 540
Unpaved (miles) 2 7 2 4 1 2 1 3 1 3 1 3 1 2 1 5 12 12
County Owned Water and
Wastewater Facilities
Water
Miles of Mains 3 7 3 8 3 8 4 7 4 7 4 9 5 1 5 6 57 58
Water Treatment Plants 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 1 11 11
Booster Stations 2 3 2 2 2 2 2 2 2 2
Wastewater
Miles of Mains 9 4 9 6 9 7 1 05 105 1 07 109 1 14 116 117
Wastewater Treatment Plants 1 1 1 1 1 1 1 1 1 1
Wastewater Collection, Lift,
and Pumping Stations 2 8 2 8 2 8 2 9 2 9 2 9 2 9 3 1 31 31
Education:
Number of Schools
High Schools 2 2 2 2 2 2 2 2 2 2
Middle Schools 3 3 3 3 3 3 3 3 4 4
Elementary Schools 7 7 7 7 8 8 8 8 8 8
Parks and Recreation:
Parks 2 5 2 4 2 4 2 4 2 4 2 8 2 9 3 2 33 33
Park Acreage 1,804 1,902 2,022 2,024 2,024 2,579 2,572 2,633 2,633 2,915
Public Landings 2 1 2 2 2 2 2 2 2 1 2 1 2 1 2 1 20 20
Library:
Number of Libraries 3 3 3 3 3 3 3 3 3 3
NOTES:
Source: Various County departments.
- 217 -

The beach at Terrapin Park is a peaceful place to take your dog for a walk.