Fiscal Year 2016 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, 2016
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal 1-5
Certificate of Achievement for Excellence in Financial Reporting 7
Organization Chart 8
Certain Elected and Other Officials 9
FINANCIAL SECTION
Independent Auditor's Report 11-13
Management's Discussion and Analysis (required supplementary information) 15-30
BASIC FINANCIAL STATEMENTS 31
Government-Wide Financial Statements
Statement of Net Position 32-33
Statement of Activities 34-35
Governmental Fund Financial Statements
Balance Sheet 36
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 37
Statement of Revenues, Expenditures and Changes in Fund Balances 38
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 39
Enterprise Fund Financial Statements
Statement of Net Position 40-41
Statement of Revenues, Expenses, and Changes in Net Position 42-43
Statement of Cash Flows 44-45
Fiduciary Fund Statements
Statement of Fiduciary Net Position 46
Statement of Changes in Fiduciary Net Position 47
Notes to Financial Statements 49-107
REQUIRED SUPPLEMENTARY INFORMATION 109
Maryland State Retirement and Pensions Systems
Schedule of the Proportionate Share of the Net Pension Liability 110
Schedule of Contributions 110
Actuarial Assumptions - Pension Plan 110
Other Post-Employment Benefits (OPEB) Trust
Schedule of Funding Progress 111
Budgetary Comparisons for General Fund
General Fund
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 112-114

QUEEN ANNE'S COUNTY, MARYLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2016
TABLE OF CONTENTS (CONTINUED)
Page(s)
FINANCIAL SECTION (CONTINUED)
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
(OTHER SUPPLEMENTARY INFORMATION) 116
Non-Major Governmental Funds 117-119
Combining Balance Sheet 120-122
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 124-126
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budgetary Basis 128-135
Non-Major Enterprise Funds 137-138
Combining Statement of Net Position 139
Combining Statement of Revenues, Expenses, and Changes in Net Position 140
Combining Statement of Cash Flows 141
Fiduciary Funds 142-143
Other Post-Employment Benefit Trust Fund
Combining Statement of Fiduciary Net Position 144
Combining Statement of Changes in Fiduciary Net Position 145
Agency Funds
Statement of Assets and Liabilities 147
Statement of Changes in Assets and Liabilities 148-149
Community Partnerships for Children Special Revenue Fund 151
Combining Balance Sheets - By Grantor 152-153
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
By Community Partnership Agreements (CPA) and
Non-Community Partnership Agreements (Non-CPA) 154-156
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budgetary Basis 158-159
STATISTICAL SECTION (UNAUDITED) 161
Table
1 Net Position by Component - Government-Wide 162-163
2a Changes in Net Position - Government-Wide 164-167
2b General Tax Revenues - Governmental Activities 168
3 Fund Balances - Governmental Funds 169
4 Changes in Fund Balances - Governmental Funds 170-171
5 Assessed Value of Taxable and Exempt Property 173
6a Real Property Tax Rates - County Direct Rate 174
6b Real Property Tax Rates - County Special Taxing Districts 175
6c Real Property Tax Rates - Overlapping Governments - Towns 176-177
7 Ten Highest Commercial Property Taxpayers 178
8 Property Tax Levies and Collections 179
9 Ratios of Outstanding Debt by Type 180
10 Ratios of General Bonded Debt Outstanding 181
11 Computation of Net Direct and Overlapping Debt 183
12a Computation of Legal Debt Margin 184-185
12b Computation of Local Debt Limit 186-187
13 Principal Employers 188
14 Demographic Statistics 189
15 County Government Employees - Full-Time Equivalents 190
16 County Government Employees - Full-Time Only by Function 191
17 Operating Indicators by Function 192
18 Capital Asset Statistics by Function 193

Introductory Section

Queen
OFFICE OF BUDGET, FINANCE AND
Anne’s IN F O R M A T ION TECHNOLOGY
The Liberty Building
County 107 North Liberty Street
Centreville, Maryland 21617
County Commissioners: Telephone: (410) 758-4064
James J. Moran, At Large Fax: (410) 758-3036
Jack N. Wilson, Jr., District 1
Stephen Wilson, District 2 County Administrator: Gregg A. Todd
Robert Charles Buckey, District 3 Director, Budget, Finance and IT: Jonathan R. Seeman
Mark A. Anderson, District 4 Chief Treasury Officer: Marie Lange
December 10, 2016
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, 2016.
This report consists of management’s representations concerning the finances of Queen Anne’s County.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in the report. To provide a reasonable basis for making these representations, the
management of Queen Anne’s County has established a comprehensive internal control framework that is
designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient
reliable information for the preparation of Queen Anne’s County’s financial statements in conformity with
Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not
outweigh their benefits, Queen Anne’s County’s comprehensive framework of internal controls has been
designed to provide a reasonable, rather than absolute, assurance that the financial statements will be free
from material misstatement. As management, we assert that, to the best of our knowledge and belief, this
financial report is complete and reliable in all material respects.
Queen Anne’s County’s financial statements have been audited by TGM Group LLC, a firm of licensed
certified public accountants. The goal of the independent audit is to provide reasonable assurance that the
financial statements of Queen Anne’s County, for the fiscal year ended June 30, 2016, are free of material
misstatement. The independent audit involves examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements; assessing the accounting principles used and significant
estimates made by management; and evaluating the overall financial statement presentation. The
independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an
unmodified opinion that Queen Anne’s County’s financial statements for the fiscal year ended June 30,
2016, 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.
____________________________ ___________________________
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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 requires that management provide a narrative introduction, overview, and analysis, entitled
Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the
MD&A and should be read in conjunction with it. Queen Anne’s County’s MD&A can be found
immediately following the report of the independent auditor.
PROFILE OF THE GOVERNMENT
Queen Anne’s County is situated on the Eastern Shore of Maryland. It is bordered to the north by Kent
County, to the east by the State of Delaware, to the south by Caroline and Talbot counties, and to the west
by the Chesapeake Bay. Access to the western shore of Maryland is provided by the Chesapeake Bay
Bridge. The County is 373 square miles in area and has approximately 48,517 citizens. The County seat is
located in Centreville. The County Commissioners of Queen Anne’s County are empowered to levy a
property tax on both real and personal properties located within its boundaries.
Queen Anne’s County was formed in 1706 and is governed by a five-member Board of County
Commissioners. County code provides that one Commissioner be elected purely at large; the remaining
four Commissioners must reside in specific districts, but are elected at large. The Commissioners operate
under Maryland’s Code Home Rule form of government. Both the executive and legislative functions of
the County are vested with the Board of County Commissioners.
Queen Anne’s County provides a full range of services including public safety (police, volunteer fire
protection, emergency services, detention center, and animal control), highways and streets, solid waste,
planning and zoning, economic development, culture and recreation, education, libraries, and general
administrative services. In conjunction with the State, the County also operates services related to general
community health and social services. In addition, the County operates a water and wastewater utility, an
airport, a golf course, and public landings and marinas.
BUDGETARY CONTROLS
The annual budget serves as the foundation for the County’s financial and budgetary controls to ensure
compliance with legal provisions embodied in the annual appropriation resolution approved by the County
Commissioners. The County budget is comprised of the budget message, current revenue and expense
budgets and the capital budget and capital program. Activities of the general fund, certain special revenue
funds, and the enterprise funds are included in the current budget.
The current operating budget includes appropriations for the full range of basic services. These services
include county administration, public safety, education, public works, community services, parks, debt and
other agencies. The capital budget includes funds to construct major governmental facilities such as the
new County Courthouse, roads, schools, and water and sewer infrastructure. Capital projects usually take
more than a year to complete, unlike the operating budget which covers only a year.
The budget process begins each fall when the County departments receive budget preparation instructions
for the capital budget which is then followed by instructions for the operating budget. The budget
preparation is directed by the Director of Budget, Finance, and Information Technology. After a thorough
review of the departmental requests, a County Administrator’s proposed budget is submitted to the County
Commissioners in March. The County Commissioners then conduct a series of public hearings and work
sessions to review the proposed budget. After its review, the County Commissioners finalize the budget and
set tax rates, fees and charges needed to generate enough revenue to balance the budget. The budget must
be adopted by the County Commissioners on or before the last day of the month of the fiscal year currently
ending, although the Commissioners typically adopt the budget at the end of May.
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The Office of Budget, Finance, and Information Technology is responsible for budgetary control. The
appropriated budgets are prepared at the fund, function (e.g., public safety), and department (e.g., Detention
Center) level. Expenditures/expenses may not legally exceed appropriations, based on the level at which
they were adopted. For the General Fund, annual expenditure budgets are legally adopted at the
departmental level. For all other Governmental Funds, for which annual budgets are adopted, expenditure
budgets are legally adopted at the fund level. Budgets for the General Capital Projects Fund and the Roads
Capital Projects Fund reflect multi-year appropriations at the individual project level.
Department Heads may make transfers of appropriations within a department of up to $10,000 with the
approval of the County Administrator. Transfers of appropriations or appropriation of new revenues in
excess of $10,000 require the approval of the County Commissioners. Budget to actual comparisons are
provided in this report for individual governmental funds for which an appropriated annual budget has been
adopted. The budget comparisons for the general fund are presented as part of the Required Supplementary
Information portion of this report. For non-major funds with appropriated annual budgets, budget to actual
comparisons are presented in the Supplementary Information subsection of this report.
ECONOMIC OUTLOOK AND CONDITION
The information presented in the financial statements is perhaps best understood when it is considered from
the broader perspective of the specific environment within which Queen Anne’s County operates.
The unemployment rate for Queen Anne’s County is typically below the state and national averages, as
shown in the chart below. The June 2016 rate for the County was 3.9%, compared to the state’s rate of
4.5% and the U.S.’s rate of 4.9%. The 2016 average rate for the County was 4.2%.
Unemployment Rate
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Queen Anne's County Maryland United States
LOCAL ECONOMY
The local employment base is somewhat limited and centers on several stable manufacturers, as well as the
agriculture, maritime, construction, retail, leisure, and hospitality industries. The three largest employers
are governmental units, including the County, the Board of Education, and Chesapeake College. There is a
small, but growing, base of specialty manufacturers. In addition, the County’s proximity to the Western
Shore enables about 60% of the workforce to commute to locations outside the County, primarily to higher
paying jobs in the Baltimore and Washington areas.
Property taxes remained fairly constant in fiscal year 2016, increasing by only 0.4% to $64.9 million.
Property tax revenue is projected to increase into fiscal year 2017 with revenue projected to be
approximately $1.2 million above the 2016 fiscal year level. Local income tax is the County’s other main
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revenue source. Income tax collections increased by 8.2% in fiscal year 2016, from $42.9 million in fiscal
year 2015 to $46.4 million in fiscal year 2016. The increase is related to capital gains. Based on newer
estimates from the State of Maryland, income tax revenue is expected to increase 3 to 3.5% in fiscal year
2017.
Recordation tax improved in fiscal year 2016 with an increase of 3.4% over fiscal year 2015, from $5.1
million in fiscal year 2015 to $5.2 million in fiscal year 2016. In addition to an increase in recordation tax
revenue, the transfer tax revenue also increased in fiscal year 2016 by 7.0%, from $1.8 million in fiscal
year 2015 to $1.9 million in fiscal year 2016.
LONG TERM FINANCIAL PLANNING
Rainy Day Fund – Ordinance No. 12-21 was adopted in January 2013 for the purpose of establishing and
maintaining a Rainy Day Fund for contingencies of an emergency nature; requiring annual reports on such
fund balance; providing for the appropriation of such funds to meet emergency needs; and requiring surplus
revenues be used to maintain the Rainy Day Fund at a set minimum amount. The Ordinance requires the
County to maintain a Rainy Day Fund for contingencies in an amount equal to 7% of the following year’s
budgeted general fund operating revenues. The County funded the Rainy Day Fund with the required
amount of $8,882,114 in fiscal year 2016.
Special Fund – Resolution No. 14-05 was adopted in March 2014 for the purpose of establishing and
maintaining a Special Fund to set aside certain general funds of the County for certain unanticipated
projects, initiatives, and other one-time expenses. The Resolution requires the County to fund the Special
Fund by the amount that General Fund revenues and transfers exceed General Fund expenditures, not to
exceed $1,000,000 in any fiscal year. The transfer to the Special Fund shall only be made after the
requirements of the Rainy Day Fund have been met. The Special Fund shall not, in any event, exceed a
total of $4,000,000. The County funded the Special Fund with the required amount of $1,000,000 in fiscal
year 2016. The current balance of the Special Fund is $3,000,000.
Spending Affordability Committee – Ordinance No. 15-11 was adopted in November 2015 for the
purpose of establishing a committee to provide recommendations and projections for the upcoming budget
year. Specifically, the Committee is charged to review in detail the status and projections of revenues and
expenditures for the County for the next budget year and subsequent five years; to evaluate future County
revenue levels and consider the impact of economic factors such as changes in personal income and
assessable base growth; and to evaluate future expenditure levels with consideration of County long-term
obligations and any pressure for growth in costs.
The Committee recommends general expenditure guidelines based on projected revenue, and the amount of
new County debt authorization for the upcoming fiscal year. The Committee report includes the effect its
recommendations will have on future budgets. This Committee also assesses the County’s ability to repay
bond debt, determines debt capacity using several debt measures, and provides general guidance regarding
future capital budgets.
Capital Projects - The County Commissioners’ six-year capital program, starting with fiscal year 2017,
prioritizes capital expenditures over these years to meet the County’s needs. The six-year program totals
$147.7 million and includes: $39.6 million for various Sanitary District projects (includes the Southern
Kent Island Sewer Service at $27.1 million); $25.1 million for administration and general services
(includes $19 million for the new courthouse); $24.7 million for Roads Board capital projects; $11.0
million for various school related projects and $13.5 million for parks.
FINANCIAL POLICIES
Bond Ratings - The financial policies and management practices of Queen Anne’s County were
recognized by two major rating agencies. Fitch Rating Service issued an AA+ bond rating and Moody’s
issued a rating of Aa2.
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Debt Management Policy – In calendar year 2013, the County adopted Resolution 13-04, which revised
the County’s Local Debt Policy. In accordance with this policy, the Director of Budget, Finance, and
Information Technology is responsible for following certain procedures to ensure that debt limits
established by the Policy are not exceeded. A key element of the Policy is that prior to the issuance of any
new bonded indebtedness, the Director must certify that existing and new General Obligation Debt will not
exceed (1) 2.5% of the total taxable assessable base and (2) $3,000 per capita. This policy also stipulates
that although there is some flexibility as to the acceptable percentage of debt service to general fund
expenditures, and no absolute limit has been established by the rating agencies or the Government Finance
Officers Association, anything above 12% of total general fund expenditures would be a cause to carefully
monitor debt service.
For fiscal year 2016, Queen Anne’s County general obligation debt was 1.61% of the total taxable
assessable base, and the per capita debt measurement was $2,525. The debt service was 9.8% of the general
fund operating expenditures for the year. All thresholds are well below the policy limits.
Fund Balance Policy – Resolution 12-21 was adopted in calendar year 2012 for the purpose of
establishing criteria in which year end fund balances can be used. There are five purposes for which using
fund balance is permitted: (1) paygo for items/projects in the County Capital Improvement Plan, (2) as a
supplement to the Rainy Day Fund if it is underfunded, (3) to pay down existing debt, (4) reserved for
future non-operating expenses related to fiscal emergencies, and (5) as one time non-recurring expenditures
of capital or non-capital items.
AWARDS AND ACKNOWLEDGMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to Queen Anne’s County, Maryland for
its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2015. 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 seventeen consecutive years (fiscal years 1999-2015).
We believe our current comprehensive annual financial report continues to conform to the Certificate of
Achievement program requirements, and we are submitting it to GFOA to determine its eligibility for
another certificate.
The preparation of the comprehensive annual financial report was made possible by the dedicated service
of the entire staff of the finance office. Each member of the department has my sincere appreciation for the
contributions made in preparation of this report. Special recognition is given to members of the Audit
Team: Nichole Hepfer, who is the principal staff member responsible for preparing the report, James
Griffin, Teresa Ward, and Lauren James. 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,
Jonathan R. Seeman
Director of Budget, Finance and Information Technology
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QUEEN ANNE’S COUNTY, MARYLAND
GOVERNMENTAL ORGANIZATION
CERTAIN ELECTED AND OTHER OFFICIALS
AS OF JUNE 30, 2016
CERTAIN ELECTED OFFICIALS
County Commissioners James J. Moran, At Large
Jack N. Wilson, Jr., District 1
Stephen Wilson, District 2
Robert Charles Buckey, District 3
Mark A. Anderson, District 4
State’s Attorney Lance G. Richardson, Esq.
Sheriff Raymond G. Hofmann
CERTAIN DEPARTMENT HEADS AND OTHER OFFICIALS
County Administrator Gregg A. Todd
Director of Public Works Todd R. Mohn
Director of County Administration Gregg A. Todd
Director of Planning and Zoning E. Michael Wisnosky
Director of Community Services Catherine R. Willis
Director of Budget, Finance and Information Technology Jonathan R. Seeman
Chief Treasury Officer Marie K. Lange
County Attorney Patrick E. Thompson, Esq.
Independent Auditor Bond Counsel Financial Advisor
TGM Group LLC McKennon, Shelton Public Advisory Consultants
Certified Public Accountants & Henn, LLP Baltimore, Maryland
Salisbury, Maryland Baltimore, Maryland
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INDEPENDENT AUDITORS’ REPORT
County Commissioners of
Queen Anne’s County
Centreville, Maryland
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of Queen Anne’s County, Maryland (the “County”) as of and
for the year ended June 30, 2016, and the related notes to the financial statements, which collectively
comprise the County’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not
audit the component unit financial statements of the Board of Education of Queen Anne’s County and
the Queen Anne’s County Free Library. Those statements were audited by other auditors whose
report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the
Board of Education of Queen Anne’s County and the Queen Anne’s County Free Library, is based
solely upon the reports of the other auditors. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America and the standards applicable to financial
audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
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are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, based on our audit and the reports of the other auditors, the financial statements
referred to above present fairly, in all material respects, the respective financial position of the
governmental activities, the business-type activities, the aggregate discretely presented component
units, each major fund, and the aggregate remaining fund information of Queen Anne’s County,
Maryland, as of June 30, 2016, and the respective changes in financial position, and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and required supplementary information, as listed in the table
of contents, be presented to supplement the basic financial statements. Such information, although not
a part of the basic financial statements, is required by the Governmental Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We and other auditors have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County’s basic financial statements. The introductory section, other
supplementary information, and statistical section, as listed in the table of contents, are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
The other supplementary information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
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information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the other supplementary information is fairly stated in all material respects in relation to the
basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide
any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December
9, 2016, 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 internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards in considering the County’s
internal control over financial reporting and compliance.
Salisbury, Maryland
December 9, 2016
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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, 2016. We encourage readers to consider the discussion and analysis along with
the other information in this report, including the transmittal letter, basic financial statements, and the notes to
the financial statements.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to Queen Anne’s County Government’s
basic financial statements. The County’s basic financial statements are comprised of three components:
Government-Wide Financial Statements
Fund Financial Statements
Notes to the Financial Statements
This report also contains other required and non-required supplementary information in addition to the basic
financial statements themselves.
Government-Wide financial statements: The government-wide financial statements are designed to provide
readers with a broad overview of Queen Anne’s County Government’s finances, in a manner comparable to a
private sector business.
The statement of net position presents information on all of Queen Anne’s County Government’s assets and
liabilities, with the difference between the two reported as net position. Over time, increases or decreases in
net position may serve as a useful indicator of whether the financial position and condition of Queen Anne’s
County Government is improving or declining.
The statement of activities presents information showing how the government’s net position changed during
the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported
in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected
taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of Queen Anne’s County Government
that are principally supported by taxes and intergovernmental revenue (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and charges
(business-type activities).
The governmental activities of Queen Anne’s County Government include general government, public safety,
public works, health, social services, education, library, conservation of natural resources, and economic and
community development. The business-type activities of Queen Anne’s County Government include water
and sewer services, an airport, a golf course, and public landings and marinas.
The government-wide financial statements include not only Queen Anne’s County Government itself (known
as the primary government), but also legally separate component units. Queen Anne’s County Government
has the following discretely presented component units: Queen Anne’s County Board of Education and the
Queen Anne’s County Free Library. Financial information for these component units is reported separately
from the financial information presented for the primary government itself. The government-wide financial
statements can be found in the basic financial statements section of this report.
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Fund Financial Statements: A fund is a group of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. Queen Anne’s County Government,
like other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of Queen Anne’s County Government can be divided into
three categories: governmental funds, proprietary funds, and fiduciary funds. Fund financial statements can
be found throughout this report, as listed in the table of contents.
Governmental funds: Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on near term inflows and outflows of
spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a
government’s near term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better
understand the long-term impact of the government’s near term financing decisions. Both the balance sheet
and the statement of revenues, expenditures, and changes in fund balances for governmental funds provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities. These
two reconciliations begin with governmental fund financial data; describe all transactions that are added or
subtracted to yield governmental activities; and end with governmental activities financial data. These
reconciliations can be found within this report, as listed in the table of contents.
Queen Anne’s County maintains three types of governmental funds: the general fund, a variety of special
revenue funds, and five capital project funds. Information is presented separately in the governmental fund
balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances
for all governmental funds. Fund type is identified for each fund.
Queen Anne’s County adopts an annual appropriated budget for its general fund (includes the roads board);
school, fire, and parks impact fee capital projects funds; and the following special revenue funds: department
of aging, housing and community services, economic development incentive, BRIDGE fund, community
partnerships for children, franchise fee, hotel tax, law library, inmate welfare, agricultural transfer, rural
legacy, dredging special assessments, and Kent Narrows. A budgetary comparison statement has been
provided for each of these funds, which can be found within this report, as listed in the table of contents.
Proprietary funds: Queen Anne’s County maintains enterprise funds to report the same functions presented as
business-type activities in the government-wide financial statements. Queen Anne’s County Government uses
enterprise funds to account for its water and sewer services, airport, golf course, and public landings and
marinas. The basic proprietary fund financial statements can be found within this report, as listed in the table
of contents.
Fiduciary funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statements because the
resources of those funds are not available to support Queen Anne’s County Government’s own programs. The
County acts as a fiduciary for two trust and five agency funds. The accounting used for fiduciary funds is
much like that used for proprietary funds except that the agency funds report only assets and liabilities and do
not report net assets or changes therein. The basic fiduciary fund financial statements can be found within this
report, as listed in the table of contents.
Notes to the financial statements: The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to the
financial statements can be found within this report, as listed in the table of contents.
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Government-wide Financial Analysis
Statement of Net Position
A summary of government-wide assets, liabilities, and net position is as follows:
Governmental Activities Business Type Activities Total
Summary of Net Position 2016 2015 2016 2015 2016 2015
Current and Other Assets $ 92,342,925 $ 9 0,381,714 $ 22,958,413 $ 21,611,101 $ 1 15,301,338 $ 111,992,815
Capital Assets 1 61,662,075 1 55,865,901 94,857,600 95,643,876 256,519,675 251,509,777
Total Assets 254,005,000 2 46,247,615 117,816,013 117,254,977 371,821,013 363,502,592
Total Deferred Outflows of Resources 7,135,486 4,386,343 582,373 305,440 7 ,717,859 4 ,691,783
Noncurrent liabilities 181,439,310 1 65,920,840 22,885,272 22,764,531 204,324,582 188,685,371
Other liabilities 9,976,439 8,440,226 1 ,110,786 1 ,334,047 11,087,225 9 ,774,273
Total Liabilities 191,415,749 1 74,361,066 23,996,058 24,098,578 215,411,807 198,459,644
Total Deferred Inflows of Resources 3,762,628 3,849,435 1,553,238 1,127,090 5 ,315,866 4 ,976,525
Net position:
Net investment in capital assets 123,466,319 1 25,434,538 80,909,015 80,787,152 204,375,334 206,221,690
Restricted amounts 2 1,063,295 20,464,486 1,699,914 3,061,534 22,763,209 23,526,020
Unrestricted amounts (deficit) (78,567,505) (73,475,567) 10,240,161 8 ,486,063 (68,327,344) ( 64,989,504)
Total Net Position $ 65,962,109 $ 7 2,423,457 $ 92,849,090 $ 92,334,749 $ 1 58,811,199 $ 164,758,206
The County’s total current and other assets increased by $3.3 million, or 3.0 percent, to $115.3 million. The
County’s total assets and deferred outflows of resources exceeded its total liabilities and deferred inflows of
resources at the close of fiscal year 2016 by $158.8 million.
Net position is divided into three categories: net investment in capital assets; restricted amounts; and
unrestricted amounts. By far the largest portion, $204.4 million, of the County’s total net position reflects its
investment in capital assets (e.g. land, buildings, machinery and equipment, vehicles, and infrastructure), less
any related and outstanding debt used to construct or acquire those assets. The County uses these capital assets
to provide services to citizens; consequently, they are not available for future spending. Although the
County’s investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay the debt must be provided from other sources since the capital assets themselves cannot be
used to liquidate these liabilities.
It is important to note that, although counties in the State of Maryland issue debt for the construction of
schools, the school buildings are owned by each county’s Board of Education. Ownership reverts to the
county government only if the local Board determines a building is no longer needed for educational purposes.
Therefore, while the County’s financial statements include outstanding debt related to Board of Education
capital assets, those statements do not include the capital assets funded by the debt. Debt outstanding for the
Board of Education amounted to $63.3 million at June 30, 2016. Absent the effect of this relationship, the
County would have reported a negative unrestricted amount of $5.0 million on its government-wide financial
statements, rather than the negative unrestricted net assets of $68.3 million reported herein. For a multi-year
view of this calculation, see the Footnote presented in Table 1 of the Statistical Section.
An additional $22.8 million of the County’s total net position represents resources that are subject to
restrictions on how they may be used. For governmental activities, this amount includes: $10.2 million related
to general government services; $5.0 million restricted for educational purposes; $4.5 million for
economic/community development; $614 thousand for public safety; and $777 thousand for conservation of
natural resources. For business-type activities, this amount includes $947 thousand 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 position, both for the government as a whole, as well as for its separate governmental
activities. Business-type activities reports positive balances in all net position categories.
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Statement of Activities
The following table summarizes changes in net position for governmental and business-type activities during
the year:
Governmental Activities Business Type Activities Total
Summary of Changes in Net Position 2016 2015 2016 2015 2016 2015
Revenues:
Program revenues:
Charges for services $ 5 ,945,984 $ 5,496,912 $ 9,731,231 $ 9,613,091 $ 15,677,215 $ 15,110,003
Operating grants and contributions 4,759,143 4,662,151 174,717 206,615 4 ,933,860 4 ,868,766
Capital grants and contributions 967,936 3 39,966 1,958,051 1,862,257 2 ,925,987 2 ,202,223
General revenues:
Property taxes 6 5,185,546 64,672,721 - - 65,185,546 6 4,672,721
Local income tax 4 7,928,725 44,643,870 - - 47,928,725 4 4,643,870
Other local taxes
Admission and amusement taxes 169,679 1 55,396 - - 169,679 155,396
Recordation taxes 5,244,614 5,071,013 - - 5 ,244,614 5 ,071,013
Hotel taxes 559,555 4 80,752 - - 559,555 480,752
County transfer taxes 1,923,016 1,797,855 - - 1 ,923,016 1 ,797,855
Investment income 174,691 94,092 320,443 323,585 495,134 417,677
Gain on sale of capital assets 161,106 1,098,632 - - 161,106 1 ,098,632
Miscellaneous 949,046 1,076,893 746,167 815,430 1 ,695,213 1 ,892,323
Total Revenues 133,969,041 129,590,253 1 2,930,609 1 2,820,978 146,899,650 142,411,231
Expenses:
Governmental Activities:
General government 1 3,936,312 10,849,277 - - 13,936,312 1 0,849,277
Public safety 2 7,525,712 25,297,450 - - 27,525,712 2 5,297,450
Public works 1 9,522,534 14,363,603 - - 19,522,534 1 4,363,603
Health 2,032,657 1,856,158 - - 2 ,032,657 1 ,856,158
Social services 5,300,871 4,775,440 - - 5 ,300,871 4 ,775,440
Education 6 0,752,025 65,633,331 - - 60,752,025 6 5,633,331
Libraries 1,622,848 1,458,348 - - 1 ,622,848 1 ,458,348
Conservation of natural resources 1,799,234 5 87,147 - - 1 ,799,234 587,147
Economic and Community development 3,391,547 1,763,024 - - 3 ,391,547 1 ,763,024
Interest and fiscal charges 4,345,527 4,039,622 - - 4 ,345,527 4 ,039,622
Business-type Activities:
Water and sewer - - 10,615,466 10,412,432 10,615,466 1 0,412,432
Airport - - 966,896 1,014,491 966,896 1 ,014,491
Golf course - - 505,085 496,065 505,085 496,065
Public landings and marinas - - 529,943 537,823 529,943 537,823
Total Expenses 140,229,267 130,623,400 1 2,617,390 1 2,460,811 152,846,657 143,084,211
Increase (Decrease) in Net Position before Transfers (6,260,226) (1,033,147) 313,219 360,167 ( 5,947,007) (672,980)
Transfers in (out) ( 201,122) (360,177) 201,122 360,177 - -
Increase (Decrease) in Net Position ( 6,461,348) ( 1,393,324) 5 14,341 7 20,344 (5,947,007) (672,980)
Net Position, prior year 7 2,423,457 73,816,781 92,334,749 91,614,405 164,758,206 165,431,186
Net Position - current year $ 65,962,109 $ 72,423,457 $ 92,849,090 $ 92,334,749 $ 1 58,811,199 $ 164,758,206
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Governmental activities:
Revenues for governmental activities were $134.0 million for fiscal year 2016. The following chart depicts
revenues by source for governmental activities:
Revenues by Source -
Governmental Activities
For the Year Ended June 30, 2016
Gain on Sale of Capital
County transfer taxes Assets
1.44% Investment Income 0.12% Miscellaneous
0.13% 0.71%
Hotel taxes
Charges for services
0.42%
Recordation taxes 4.44%
3.91%
Admission and Operating, capital &
amusement taxes restricted grants
0.13% 4.27%
Local income tax
35.78%
Property taxes
48.65%
 Taxes comprise the largest source of County revenue, totaling $121.0 million (90.3 percent) of total
revenue for fiscal year 2016. Of that amount, property and local income tax together yielded $113.1
million (84.4 percent) of all revenue. Each County sets its own property and income tax rates, within
parameters established by the State. For fiscal year 2016, the County’s property tax rate remained
constant at $.8471 per $100 of assessed value of real property, based on full cash value of that
property. The County’s local income tax rate was set at 3.2 percent, effective January 1, 2012 and
thereafter. There is no local sales tax in the State of Maryland.
 Charges for services, totaling $5.9 million, reflect fees charged to County citizens. These primarily
support general government ($1.6 million or 26.3 percent), public safety ($1.4 million or 22.8
percent), public works ($1.3 million or 22.5 percent), and education ($1.2 million or 20.7 percent).
 Operating grants and contributions, totaling $4.8 million, reflect grants from Federal and State
agencies that support specific County programs. Programs that benefitted the most were: social
services ($1.8 million or 38.5 percent), public safety ($1.1 million or 22.9 percent), and public works
($1.0 million or 21.6 percent).
 Capital grants and contributions, totaling $968 thousand, reflect contributions from Federal and State
agencies, as well as developers. Conservation of natural resources benefited the most from capital
grants and contributions during the year ($573 thousand or 59.2 percent).
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Expenses for all governmental activities were $140.2 million for fiscal year 2016. The following chart depicts
expenses by function for governmental activities:
Expenses -
Governmental Activities
For the Year Ended June 30, 2016
Economic and
Community
Interest and fiscal
development
charges
2.42%
3.10%
Conservation of
natural resources
General government
1.28%
9.94%
Libraries
1.16%
Public safety
19.63%
Public works
Education
13.92%
43.32%
Health
Social services 1.45%
3.78%
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 $60.8 million (43.3 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 2016 2015 2016 2015 2016 2015
Education $ 60,752,025 $ 6 5,633,331 $ 1,230,994 $ 1,249,332 $ (59,521,031) $ (64,383,999)
Public Safety 2 7,525,712 25,297,450 2,618,600 2,416,536 (24,907,112) ( 22,880,914)
Public Works 1 9,522,534 14,363,603 2,475,257 1,883,076 (17,047,277) ( 12,480,527)
General Government 1 3,936,312 10,849,277 2,117,741 2,246,838 (11,818,571) (8,602,439)
Social Services 5,300,871 4,775,440 2,050,804 2,164,825 ( 3,250,067) (2,610,615)
Economic and Community Development 3,391,547 1,763,024 467,804 365,902 ( 2,923,743) (1,397,122)
Conservation of Natural Resources 1,799,234 5 87,147 711,863 172,520 ( 1,087,371) (414,627)
Other 8,001,032 7,354,128 - - ( 8,001,032) (7,354,128)
Total $ 140,229,267 $ 130,623,400 $ 11,673,063 $ 10,499,029 $ (128,556,204) $ (120,124,371)
Of the total cost of $140.2 million for governmental activities, $11.7 million (8.4 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 $5.9 million,
while governments and other organizations that benefited indirectly from these programs contributed operating
grants of $4.8 million and capital grants of $968 thousand.
County taxpayers paid for most of the remaining $128.6 million in net program costs, through a variety of
County taxes, for a total of $121.0 million. Net program costs of services provided to the public, in order of
net cost, were: $59.5 million for education; $24.9 million for public safety; $17.0 million for public works;
$11.8 million for general government; $3.3 million for social services; $2.9 million for economic and
community development; $1.1 million for conservation of natural resources; and $8.0 million for other
services. See Changes in Net Position and General Fund Budgetary Highlights for further details.
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Changes in net position: Government-wide revenues, less expenses, plus/minus transfers in/out, yield changes
in net position. During fiscal year 2016, governmental activities decreased the County’s net position overall
by $6.5 million, compared to a decrease of $1.4 million in fiscal year 2015. The following discussion explains
changes in net position relative to the prior fiscal year.
Revenues for governmental activities increased by $4.4 million (3.4 percent). The following key revenues
changed, when compared to the prior fiscal year:
 Local income tax increased by $3.3 million (7.4 percent), from $44.6 million to $47.9 million. The
growth in income tax appears to be related to areas which have a disproportionate impact on higher
level incomes, such as growth in stock values, investment income and capital gains.
 Capital grants and contributions increased by $628 thousand (184.7 percent), from $340 thousand in
fiscal year 2015 to $968 thousand in fiscal year 2016. The key factor for this change is that
conservation of natural resources increased by $569 thousand. The majority of this increase ($555
thousand) related to grant funding received in fiscal year 2016 for the purchase of a land conservation
easement. No such activity occurred in the prior year.
 Charges for Services increased by $449 thousand (8.2 percent), from $5.5 million in fiscal year 2015
to $5.9 million in fiscal year 2016. Of this increase, $233 thousand resulted from an increase in
housing and community services funding received from developers. An additional $110 thousand
resulted from increases in public safety funding.
 Gain on sale of capital assets decreased by $938 thousand (85.3 percent), from $1.1 million in fiscal
year 2015 to $161 thousand in fiscal year 2016. In fiscal year 2015, land was sold for a gain of $970
thousand.
Expenses for governmental activities increased by $9.6 million (7.4 percent) and transfers out to business-type
activities decreased by $159 thousand. Key positive and negative expense changes, in order of relative
importance, are:
 Education expenses decreased by $4.9 million (7.4 percent). The decrease resulted from $6.9 million
less in expenses for the renovation of Stevensville Middle School, due to the timing of the project. In
fiscal year 2016, total expenses for Stevensville Middle were $2.9 million, compared to $9.8 million
in fiscal year 2015. This decrease was offset by an increase in the operating allocation to the Board of
Education by $1.4 million in fiscal year 2016, which was funding above the maintenance of effort
amount in order to pay for negotiated contracts. Expenses for textbooks also increased by $974
thousand in fiscal year 2016 compared to fiscal year 2015.
 Public Works increased by $5.2 million (35.9 percent). Expenses for asphalt overlays increased by
$1.9 million compared to the prior fiscal year, along with an increase of $530 thousand in other roads
expenses. The County also donated land totaling $796 thousand. Additional details on the donated
land can be found in the capital asset section of this document. There was also a loss on disposal of
$564 thousand due to infrastructure that was retired due to the county’s replacement of roads. Pension
expense recognized in public works increased by $576 thousand for fiscal year 2016, as a result of the
required net pension liability adjustments.
 General Government increased by $3.1 million (28.5 percent) as a result of increases in many different
areas. First of all, the County donated a parcel of land on Nesbit Road to Shore Health Systems, at an
expense of $603 thousand. Additional details on the donated land can be found in the capital asset
section of this document. Secondly, pension expense for general government increased by $499
thousand for fiscal year 2016, as a result of the required net pension liability adjustments. Also,
workmen’s compensation expense charged to general government increased by $441 thousand. This
increase was offset by savings in workmen’s compensation in other areas. There were also several
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departments that had increases in the fiscal year 2016 expenses compared to prior year as a result of
salary increases and other charges.
 Public Safety expenses increased by $2.2 million (8.8 percent). The expense related to pensions costs
for public safety increased by $1.6 million as a result of net pension liability requirements. The
Sheriff’s Office also had an increase of $544 thousand in expenses for fiscal year 2016 as a result of
additional equipment purchased and an increase in salary costs.
 Economic and Community Development increased by $1.6 million (92.4 percent) mainly as a result of
increased disbursements of $1.0 million from the Economic Development Incentive program. There
were more businesses eligible for the program in fiscal year 2016. In addition, the County provided
funding in the amount of $195 thousand to the Queen Anne’s County Public Housing Authority.
There were also other miscellaneous increases in expenses such as housing and community services
and in the hotel tax fund (economic development and tourism).
 Conservation of Natural Resources increased by $1.2 million (206.4 percent). One reason for the
increase is easement acquisitions in fiscal year 2016 ($684 thousand total) compared to no
acquisitions in 2015. Generally, the timing of easement purchases is affected by the evaluation
process of the identified land, as well as the availability of State funds. In addition, there were
expenses totaling $510 thousand for Narrows Pointe Shore Erosion, of which there were not any
expenses in fiscal year 2015.
Business-type activities:
Revenues, transfers in, and expenses for business-type activities were $12.9 million, $201 thousand, and $12.6
million, respectively, for fiscal year 2016. 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, 2016
Investment
income Miscellaneous
2.48% 5.77%
Operating &
capital grants & Charges for
contributions services
16.49% 75.26%
Expenses by Service -
Business-Type Activities
For the Year Ended June 30, 2016
Golf course Public landings
4.00% and marinas
4.20%
Airport
Water and
7.66%
sewer
84.14%
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Business-type activities increased the County’s net position altogether by $514 thousand in fiscal year 2016,
which is a decrease of $206 thousand compared to the prior year’s increase of $720 thousand. The fiscal year
2016 change in net position resulted primarily from:
 Operating expenses before transfers increased by $157 thousand (1.3 percent), from $12.5 million in
fiscal year 2015 to $12.6 million in fiscal year 2016, for all business-type activities. Sanitary expenses
increased by $203 thousand (due to increase in pension expense), along with an increase of $9
thousand for the Golf Course. Offsetting a portion of these increases were decreases of $48 thousand
for the Airport and $8 thousand for Public Landings and Marinas.
Financial Analysis of the Government’s Funds
As noted earlier, Queen Anne’s County Government uses fund accounting to ensure and demonstrate
compliance with finance related legal requirements. Detailed financial data based on the government’s fund
accounting can be found in the governmental fund statements in this report.
Governmental Funds: The focus of Queen Anne’s County Government’s governmental funds is to provide
information on near term inflows, outflows, and balances of spendable resources. Such information is useful
in assessing Queen Anne’s County Government’s near term financing requirements. In particular, unassigned
fund balance may serve as a useful measure of a government’s net resources available for spending at the end
of a fiscal year.
As of the end of the current fiscal year, Queen Anne’s County Government’s governmental funds reported
combined ending fund balances of $71.8 million, compared to $72.1 million for the prior year. Approximately
11.6 percent of this total ($8.4 million) constitutes unassigned fund balance, which is available for spending.
The total unassigned fund balance of $8.4 million is comprised of $8.5 million of positive unassigned fund
balance for the general fund, reduced by negative unassigned fund balances of $115 thousand in the non-major
governmental funds. Additional detail on the negative unassigned balances can be found in Note 15 of this
report.
The nonspendable fund balance ($6.7 million), at 9.4 percent of the total fund balance, is not available for
spending and includes amounts related to inventory and loans receivable. Restricted fund balance of $30.3
million (42.2 percent) includes amounts that can be spent only for specific purposes stipulated by external
sources or legal restrictions. Included in the restricted fund balance is $8.9 million for the rainy day fund.
Committed fund balance of $6.4 million (9.0 percent) represents those amounts that can be used only for the
specific purposes of the government’s highest level of decision-making authority. Included in the committed
fund balance is $3.0 million for the Special Fund.
The remaining 27.8 percent of fund balance ($20.0 million) constitutes assigned fund balances. These
amounts are intended to be used by the government for the specific purposes of each fund.
The General Fund is the chief operating fund of Queen Anne’s County Government. At the end of the current
fiscal year, the General Fund had a total fund balance of $23.0 million, which is an increase of $1.8 million
from the fiscal year 2015 balance of $21.2 million.
Of the total $23.0 million in fund balance, $8.5 million is unassigned, meaning that there are no constraints on
how the funds can be spent. In fiscal year 2013, the County Commissioners adopted Ordinance No. 12-21 for
the purpose of re-establishing the Rainy Day Fund, and requires the County to maintain a Rainy Day Fund for
contingencies in an amount equal to 7% of budgeted General Fund operating revenues. As a result of that
Ordinance, $8.9 million of rainy day funds are included in the General Fund’s restricted fund balance of $9.0
million for fiscal year 2016. The remaining fund balance is comprised of $586 thousand in nonspendable, $3.0
million in committed, and $1.9 million of assigned.
For further explanations of General Fund revenues and expenditures, see the General Fund Budgetary
Highlights section of this MD&A.
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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, 2016, the General Capital Projects Fund has a total fund balance of $28.2 million, compared to
$30.8 million at the end of the prior fiscal year. The $28.2 million in total fund balance is comprised of $1.1
million of nonspendable fund balance, $9.5 million in restricted fund balance, mainly for unspent bond
proceeds, $2.8 million of fund balance committed for specific projects, and $14.8 million of assigned fund
balance.
The Roads Capital Projects Fund accounts for financial resources used for the construction of County Road
infrastructure, as well as other large multi-year projects that relate to capital assets.
As of June 30, 2016, the Roads Capital Projects Fund has a total fund balance of $3.5 million, compared to
$3.6 million at the end of the prior fiscal year. Of this total $3.5 million fund balance, $2.8 million has been
assigned to fund ongoing projects, while $611 thousand has been contributed by local developers and is
committed to fund specific infrastructure improvements.
Proprietary funds: Queen Anne’s County Government’s enterprise fund statements provide the same type of
information found in the government-wide financial statements, but in more detail. Also, due to/due from
other funds are combined in the government-wide statements and reported as Internal Balances between
governmental and business-type activities, which net to zero.
Total unrestricted net position of the Sanitary District Enterprise Funds at the end of fiscal year 2016
amounted to $10.8 million, which is $2.1 million more than the prior year.
Total net position of the Sanitary District amounted to $71.2 million at the end of fiscal year 2016, which
increased by $873 thousand when compared to the prior year.
The unrestricted net position of the Bay Bridge Airport Enterprise Fund at year end amounted to negative
$511 thousand compared to a negative $220 thousand at the end of the prior fiscal year, reflecting an decrease
of $291 thousand. The decrease is the result of a combination of less revenue and also less transfers in from
the General Fund.
Total net position of the Bay Bridge Airport amounted to $15.5 million at the end of fiscal year 2016, which is
a decrease from the prior year amount of $15.8 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 expenditures. The Schedule of Revenues, Expenditures, and Changes
in Fund Balance – Budget and Actual can be found as part of Required Supplemental Information, which is
located after the Notes. The Schedule reports original and final budgets, as well as the variance between actual
expenditures and final budgets.
Original to Final Budget Comparisons. The final expenditure budget for the General Fund, including transfers
out, totaled $126.4 million. Amendments increased spending authority by $1.2 million during fiscal year
2016, when compared to the original budget of $125.2 million.
-24-

Major components of these expenditure budget increases are as follows:
 Budgeted Transfers Out to General Capital Projects increased by $1.8 million during the year. There
are several capital projects in which the County plans to move aggressively on, and will rely on fund
balance available in the General Capital Projects fund to cover a portion of the costs.
 Budgeted Parks and Public Works Expenditures increased by $245 thousand, partially due to
employees transferred from other departments to the Public Works Administration. This increase was
offset by savings in other departments.
 Budgeted Volunteer Fire and Rescue Services Expenditures decreased by $395 thousand due to
savings associated with workmen’s compensation expense which was charged to miscellaneous non-
departmental for fiscal year 2016.
 Budgeted Debt Service Expenditures decreased by $325 thousand due to savings resulting from the
timing of bond payments for the fiscal year 2016 bonds.
 Budgeted Miscellaneous Expenditures decreased by $346 thousand due to a variety of savings, mostly
associated with contingencies. Offsetting a portion of the savings in contingencies was an increase in
miscellaneous non-departmental due to the workmen’s compensation costs.
Budget to Actual Comparisons. Actual revenues for the General Fund, including other financing sources and
before appropriated fund balance were more than final budgetary estimates by $353 thousand. Actual
expenditures, and other financing uses, were less than final budgetary appropriations by $2.5 million. The net
effect of these two disparities 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:
 Transfers In were $570 thousand less than the final budget (31.0 percent), as a result of the full
transfer in from School Impact fees not being made in the fiscal year. Management determined that it
was more advantageous to only transfer a portion of the budgeted amount and leave the remaining
money in the Impact Fee Fund in anticipation of future Board of Education projects.
Expenditures:
 Final Budgeted Salaries and Benefits were $32.9 million for the year, while actual costs were $32.7
million. They were underspent at year-end by $183 thousand (0.6 percent). The Sheriff’s Office was
underspent by $483 thousand and general services was underspent by $175 thousand. This was due
to the number of vacant positions during the fiscal year and the lapsed funds associated with the
recruitment of staff. Offsetting these savings were several departments that were overspent in salaries
and wages due to promotions and other staffing changes.
 Final Budgeted Other Operating Charges were $93.5 million for the year, while actual costs were
$91.2 million. These costs were lower than budget at year end by $2.3 million (2.5 percent).
Operating Charges include contracted services, supplies, debt service, transfers out, and other charges.
o Contracted Services were underspent by $285 thousand, with the largest savings realized by
the detention center ($166 thousand) and solid waste ($125 thousand).
o Supplies were underspent by $339 thousand, largely due to savings by solid waste ($154
thousand) and roads ($121 thousand).
-25-

o Other Charges were underspent by $974 thousand, primarily due to savings of $463 thousand
for intergovernmental costs. The majority of the intergovernmental savings related to the
municipal tax set-off. The Health Department also realized savings of $206 thousand. This
represents the unspent portion of their allocation and was returned to the County in fiscal year
2016. In addition, insurance costs was underspent by $124 thousand due to savings in retiree
health care costs and also general insurance expenses. The solid waste department also
realized savings of $93 thousand. The remaining savings for other charges were spread
throughout the General Fund.
o Debt service was underspent by $132 thousand due to the timing of the 2016 bond payments.
o Transfers Out were underspent by $592 thousand, due to savings realized by the Department
of Aging ($345 thousand), the Department of Housing ($107 thousand) and the Golf Course
Enterprise Fund ($140 thousand), which allowed these Departments to forgo this portion of
their appropriation.
Capital Assets and Debt Administration
Capital assets: Queen Anne’s County Government’s investment in capital assets for its governmental and
business-type activities as of June 30, 2016 amounted to $256.5 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.
Capital asset activities, net of depreciation, are summarized as follows:
Governmental Activities Business Type Activities Total
Capital Assets, Net of Depreciation 2016 2015 2016 2015 2016 2015
Land and Land Improvements $ 86,313,290 $ 8 7,485,213 $ 15,420,127 $ 15,420,127 $ 1 01,733,417 $ 102,905,340
Intangible Rights - Easements 821,819 8 21,819 6,140 6,140 827,959 827,959
Construction in Progress 1 7,424,099 10,986,604 1,913,025 850,582 19,337,124 11,837,186
Buildings 2 8,059,042 28,801,993 6,188,615 6,801,057 34,247,657 35,603,050
Improvements other than Buildings 7,735,674 7,438,743 10,194,045 10,711,646 17,929,719 18,150,389
Infrastructure 1 0,682,853 11,029,472 50,166,007 50,040,254 60,848,860 61,069,726
Auto, Machinery, and Equipment 1 0,625,298 9,302,057 10,969,641 11,814,070 21,594,939 21,116,127
Total $ 161,662,075 $ 155,865,901 $ 94,857,600 $ 95,643,876 $ 2 56,519,675 $ 251,509,777
Queen Anne’s County’s total investment in capital assets for the current fiscal year, net of depreciation,
increased by 2.0 percent, or $5.0 million. Of this amount, governmental investment in capital assets increased
by $5.8 million, while business-type investment in capital assets decreased by $786 thousand.
-26-

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
Changes in Capital Assets 2015 Additions Transfers Retirements 2016
Land and Land Improvements $ 87,485,213 $ 791,089 $ - $ (1,963,012) $ 86,313,290
Intangible Rights - Easements 821,819 - - - 821,819
Construction in Progress 1 0,986,604 7,347,862 (910,367) - 17,424,099
Buildings 4 1,684,071 1 84,709 - - 41,868,780
Improvements other than Buildings 9,577,406 1 70,421 454,956 - 10,202,783
Infrastructure 1 8,926,771 - - (141,013) 18,785,758
Auto, Machinery, and Equipment 3 1,518,205 2,712,692 455,411 ( 2,038,230) 32,648,078
Total Assets before depreciation 201,000,089 11,206,773 - ( 4,142,255) 208,064,607
Less Depreciation (45,134,188) (3,249,925) - 1,981,581 (46,402,532)
Total Assets after depreciation $ 155,865,901 $ 7,956,848 $ - $ (2,160,674) $ 161,662,075
Business-Type Activities
Changes in Capital Assets 2015 Additions Transfers Retirements 2016
Land and Land Improvements $ 15,420,127 $ - $ - $ - $ 15,420,127
Intangible Rights - Easements 6,140 - - - 6,140
Construction in Progress 850,582 1,062,443 - - 1,913,025
Buildings 1 4,703,860 - - - 14,703,860
Improvements other than Buildings 1 4,824,467 - - - 14,824,467
Infrastructure 7 7,866,782 1,958,050 - - 79,824,832
Auto, Machinery, and Equipment 2 3,986,201 2 95,603 - (49,047) 24,232,757
Total Assets before depreciation 147,658,159 3,316,096 - (49,047) 150,925,208
Less Depreciation (52,014,283) (4,102,372) - 49,047 (56,067,608)
Total Assets after depreciation $ 95,643,876 $ ( 786,276) $ - $ - $ 94,857,600
Noteworthy capital asset events during the current fiscal year for governmental activities included the
following:
 Land and Land Improvements decreased by a net amount of $1.2 million. The County donated the
following right-of-ways and parcels to external entities as follows: (a) parcel to the YMCA of the
Chesapeake ($676 thousand); (b) parcel on Nesbit Road to Shore Health Systems ($603 thousand);
(c) three right-of-ways and a lot to the Town of Centreville as part of the property development
surrounding the new County office building ($120 thousand). Also roads infrastructure ($564
thousand) was retired due to the county’s replacement of roads. Additionally, the County purchased
three parcels of land: (a) two parcels for the new Courthouse ($608 thousand); and (b) parcel on
Chester River Heights Road ($183 thousand).
 Construction in Progress (CIP) increased by a net amount of $6.4 million. The following factors
contributed to this increase:
Costs reclassified from Construction in Progress include: (a) County-wide fiber infrastructure ($439
thousand); (b) Emergency Services mobile data terminals ($184 thousand); (c) Improvements to the
public safety network equipment ($148 thousand); and (d) Site improvements to the solid waste
transfer stations ($140 thousand).
Major additions to Construction in Progress include: (a) Construction phase work for the new County
office building ($5.9 million); (b) Upgrade of the radio system for the Emergency Services
Department ($547 thousand); (c) Architectural and site work related to construction of the new
Courthouse ($481 thousand); (d) White Marsh park lacrosse field construction ($102 thousand); and
(e) Animal health lab renovations ($51 thousand).
-27-

 Buildings increased by $185 thousand. This increase resulted from the completion of two new storage
facilities servicing the Roads and Parks departments.
 Improvements other than buildings increased by a net amount of $625 thousand. The increase resulted
primarily from the completion of the following site improvement projects: (a) County-wide fiber
infrastructure ($459 thousand); and (b) Parking lot upgrades at various parks locations ($131
thousand).
 Infrastructure decreased by $141 thousand as a result of roads infrastructure retired due to the
County’s replacement of roads.
 Auto, Machinery and Equipment increased by $1.1 million. The following factors contributed to this
net increase:
Additions totaled $3.1 million and included: (a) Emergency Services department vehicle and
equipment replacement ($1.1 million); (b) Roads Department replacement vehicles and equipment
($535 thousand); (c) Solid Waste department vehicle and equipment replacement ($409 thousand); (d)
Sheriff’s Department vehicle and equipment replacement ($309 thousand); (e) Parks Department
vehicle and equipment replacement ($254 thousand); (f) QACTV equipment replacement ($182
thousand); and (g) General Services and DPW Administration vehicle and equipment replacement
($118 thousand).
Retired assets of $2.0 million included the following, the majority of which were fully depreciated: (a)
Obsolete computer software, hardware, and other office equipment sold or discarded ($1.0 million);
(b) Sheriff vehicles sold as part of replacement program ($190 thousand); (c) Obsolete General
Services and DPW Administration equipment sold or discarded ($182 thousand); (d) Obsolete
Emergency Services equipment sold or discarded ($182 thousand); (e) Vehicles traded by the Solid
Waste department ($123 thousand); and (f) Solid Waste disposal equipment discarded ($88 thousand).
Noteworthy capital asset transactions during the current fiscal year for business-type activities included the
following:
 Construction in Progress increased by a net amount of $1.1 million. Major additions to construction in
progress included: (a) planning and design work for phase one of the southern Kent Island sewer
system ($707 thousand); (b) improvements to the Bay Bridge Airport property including new hangar
construction and due diligence activities for future land acquisitions ($248 thousand); and (c)
improvements to the golf course including irrigation and driving range ($107 thousand).
 Infrastructure increased by $2.0 million as a result of various water and sewer infrastructure
contributed by commercial developers to be maintained by the County.
 Auto, Machinery and Equipment increased by a net amount of $247 thousand. The following factors
contributed to this net increase:
Additions of $296 thousand include the following: (a) new sewer pumps, well pumps and other
sanitation equipment ($127 thousand); (b) weather reporting station at the Bay Bridge Airport ($94
thousand); (c) Bay Bridge Airport equipment replacement ($57 thousand); and (d) Public Landings
vehicle replacement ($17 thousand).
Fully depreciated vehicles with a historical cost of $49 thousand were sold by the Sanitary District.
Additional information on the County’s capital assets can be found in Note 6 of this report.
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Long-term debt: At the end of the current fiscal year, Queen Anne’s County Government had total bonded
debt, loans, capital leases, other post-employment benefit obligations, net pension liability, and compensated
absence obligations of $204.3 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 $204.3 million in debt, $22.9 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 $1.1 million, which are
restricted to payment of the Sanitary District’s subsequent year’s debt. See Note 10 for restricted assets and
subsequent year debt service obligations.
Debt activities are summarized as follows:
Bonded Debt, Loans,
Other Post-Employment Benefit Obligation, Governmental Activities Business Type Activities Total
Net Pension Liability, and Compensated Absences 2016 2015 2016 2015 2016 2015
Bonds, Notes, and Premiums $ 120,891,108 $ 112,844,838 $ 13,992,498 $ 14,929,213 $ 134,883,606 $ 127,774,051
Other Post-Employment Benefit Obligation 3 5,511,934 33,920,346 6,428,434 5,951,774 41,940,368 39,872,120
Net Pension Liability 2 2,591,512 16,857,736 2,129,736 1,573,426 24,721,248 18,431,162
Compensated Absences 2,444,756 2,297,920 334,604 310,118 2,779,360 2 ,608,038
Total Long-term Debt $ 181,439,310 $ 165,920,840 $ 22,885,272 $ 22,764,531 $ 204,324,582 $ 188,685,371
During the 2016 fiscal year, the County’s total net debt increased by $15.6 million (8.3 percent). Of this
amount, governmental debt increased by $15.5 million (9.4 percent), while business-type debt increased by
$121 thousand (0.5 percent). In fiscal year 2016, the County issued 2016 bonds totaling $14.0 million and
2016 refunding bonds totaling $8.5 million. The County also borrowed an additional $510 thousand in
fiscal year 2016 for the Narrows Pointe Shore Erosion loan and signed a note with SunTrust Equipment
Financing & Leasing Corporation for $1.2 million. In addition, the total Other Post-Employment Benefit
Obligations increased by $2.1 million and the net pension liability increased by $6.3 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 of this report.
The public local laws of Queen Anne’s County limit the amount of general obligation debt to no more than
$8.0 million, beyond any bonded indebtedness of the County. Currently, approximately $6.1 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 2016, Queen Anne’s County Government received an “AA+” bond rating from Fitch Rating
Service and an “Aa2” bond rating from Moody’s Investors Service.
-29-

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 2017 fiscal year:
 Property assessments are projected to increase by 2.53 percent over the previous year, based on State
Assessment Office values used to compute the Constant Yield rate.
 Income tax revenue was projected at $46.5 million for the 2017 budget, however, the County has since
revised the estimate for income tax revenue to be 3.0% to 3.5% above the actual 2016 receipts of
$46.4 million.
The following are a few of the highlights from the fiscal year 2017 budget:
o Other Post-Employment Benefits shall continue to be funded in accordance with the approved
ten year plan;
o The Board of Education will be funded at $1.1 million above Maintenance of Effort in fiscal
year 2017;
o The County’s pay for performance system will continue in fiscal year 2017 using the rating
levels of 1, 2, and 3; and
o County employees shall receive a one percent cost of living allowance as of July 1, 2016.
Requests for information
This financial report is designed to provide a general overview of Queen Anne’s County Government’s
finances for all those with an interest in the government’s finances. Questions concerning any of the
information provided in this report or requests for additional information should be addressed to the Queen
Anne’s County Finance Office, 107 N. Liberty Street, Centreville, Maryland 21617. This report can also be
found on the County’s website, http://www.qac.org (see Government, Departments, Budget, Finance, and IT,
Accounting section, Link to 2016 Comprehensive Annual Financial Report (CAFR)).
-30-

Basic Financial Statements
-31-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
JUNE 30, 2016
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
Equity in Pooled Cash and Investments $ 53,904,648 $ 13,327,345 $ 67,231,993
Cash and Cash Equivalents - - -
Taxes Receivable (Net) 797,729 - 797,729
Accounts and Loans Receivable (Net) 7,944,895 726,855 8,671,750
Special Assessments (Net) 617,986 - 617,986
Internal Balances 1,741,102 (1,741,102) -
Due from Primary Government - - -
Due from Other Governments 15,068,973 179,955 15,248,928
Bond Interest Reimbursement Receivable - Build America Bond 90,163 3 ,705 93,868
Inventories 580,083 595,770 1,175,853
Prepaid Items 13,889 2 2,398 36,287
Restricted Assets:
Equity in Pooled Cash and Investments 11,583,457 7,915,738 19,499,195
Accounts Receivable (Net) - 546,683 546,683
Special Assessments Receivable (Net) - 1,381,066 1,381,066
Capital Assets:
Nondepreciable Assets 104,559,208 17,339,292 121,898,500
Depreciable Assets, Net 57,102,867 77,518,308 134,621,175
Total Assets 254,005,000 117,816,013 371,821,013
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows related to Pensions 5,553,438 538,460 6,091,898
Deferred Charge on Refunding 1,582,048 4 3,913 1,625,961
Total Deferred Outflows of Resources 7,135,486 582,373 7,717,859
LIABILITIES
Accounts Payable and Other Current Liabilities 5,935,333 484,733 6,420,066
Accrued Interest Payable 1,420,658 9 0,067 1,510,725
Due to Component Units 1,380,929 - 1,380,929
Due to Other Governmental Agencies 329,683 - 329,683
Unearned Revenue 909,836 470,379 1,380,215
Escrow Deposits - 6 5,607 65,607
Noncurrent Liabilities:
Due within One Year 10,508,579 1,429,061 11,937,640
Due in More than One Year 170,930,731 21,456,211 192,386,942
Total Liabilities 191,415,749 23,996,058 215,411,807
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows related to Pensions 1,846,942 172,385 2,019,327
Deferred Assessments 617,986 1,380,853 1,998,839
Deferred Fees 1,297,700 - 1,297,700
Total Deferred Inflows of Resources 3,762,628 1,553,238 5,315,866
NET POSITION
Net Investment in Capital Assets 123,466,319 80,909,015 204,375,334
Amounts Restricted for:
General Government 10,161,108 - 10,161,108
Education 5,048,382 - 5,048,382
Economic/Community Development 4,463,015 - 4,463,015
Public Safety 613,636 - 613,636
Conservation of Natural Resources 777,047 - 777,047
Social Services 107 - 1 07
Debt Service - 946,614 946,614
Capital Projects - 753,300 753,300
Other Purposes - - -
Unrestricted Amounts (Deficit) (78,567,505) 10,240,161 ( 68,327,344)
Total Net Position $ 65,962,109 $ 92,849,090 $ 158,811,199
The accompanying notes to the basic financial statements are an integral part of this statement.
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QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
JUNE 30, 2016
(CONTINUED)
COMPONENT UNITS
BOARD OF FREE
EDUCATION LIBRARY
$ - $ -
12,555,600 9 45,206
- -
280,977 -
- -
- -
1,381,258 -
2,289,292 -
- -
38,979 -
13,486 41,748
- -
- -
- -
30,015,455 29,850
140,870,997 1 ,104,732
187,446,044 2 ,121,536
1,091,215 -
- -
1,091,215 -
11,687,194 53,508
- -
- -
93,722 -
816,906 -
- -
707,204 -
53,971,254 1 ,270,777
67,276,280 1 ,324,285
386,144 -
- -
- -
386,144 -
168,123,706 1 ,134,582
- -
- -
- -
- -
- -
- -
- -
530,131 -
33,372 10,500
(47,812,374) (347,831)
$ 1 20,874,835 $ 7 97,251
The accompanying notes to the basic financial statements are an integral part of this statement.
-33-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2016
PRIMARY GOVERNMENT
OPERATING CAPITAL
CHARGES FOR GRANTS AND GRANTS AND TOTAL
EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS REVENUE
PRIMARY GOVERNMENT
Governmental Activities
General Government $ 13,936,312 $ 1,565,170 $ 582,571 $ (30,000) $ 2,117,741
Public Safety 27,525,712 1,354,350 1,088,597 175,653 2,618,600
Public Works 19,522,534 1,337,358 1,029,019 108,880 2,475,257
Health 2,032,657 - - - -
Social Services 5,300,871 76,404 1,834,000 140,400 2,050,804
Education 60,752,025 1,230,994 - - 1,230,994
Library 1,622,848 - - - -
Conservation of Natural Resources 1,799,234 70,708 68,152 573,003 711,863
Economic/Community Development 3,391,547 311,000 156,804 - 467,804
Interest and Fiscal Charges 4,345,527 - - - -
Total Governmental Activities 140,229,267 5,945,984 4,759,143 967,936 11,673,063
Business-type Activities
Water and Sewer 10,615,466 8,956,360 85,099 1 ,958,051 10,999,510
Airport 9 66,896 45,916 52,837 - 98,753
Golf Course 5 05,085 305,528 - - 305,528
Public Landings and Marinas 5 29,943 423,427 36,781 - 460,208
Total Business-type Activities 12,617,390 9,731,231 174,717 1,958,051 11,863,999
Total Primary Government $ 152,846,657 $ 15,677,215 $ 4,933,860 $ 2 ,925,987 $ 23,537,062
COMPONENT UNITS
Board of Education $ 113,434,959 $ 1,409,452 $ 1 2,290,146 $ - $ 13,699,598
Free Library 2,138,784 5,317 267,372 - 272,689
Total Component Units $ 115,573,743 $ 1,414,769 $ 1 2,557,518 $ - $ 13,972,287
General Revenues
Local Property Tax
Local Income Tax
Other Local Taxes
Admission and Amusement Taxes
Recordation Taxes
Hotel Taxes
County Transfer Taxes
Grants and Contributions Not Restricted to Specific Programs
Investment Income
Gain on Sale of Capital Assets
Miscellaneous
Transfers In (Out)
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning of Year
Net Position - End of Year
The accompanying notes to the basic financial statements are an integral part of this statement.
-34-

QUEEN ANNE'S COUNTY, MARYLAND QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2016 FOR THE YEAR ENDED JUNE 30, 2016
(CONTINUED)
NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION
PRIMARY GOVERNMENT COMPONENT UNITS
GOVERNMENTAL BUSINESS-TYPE BOARD OF FREE
ACTIVITIES ACTIVITIES TOTAL EDUCATION LIBRARY
$ ( 11,818,571) $ - $ ( 11,818,571) $ - $ -
( 24,907,112) - ( 24,907,112) - -
( 17,047,277) - ( 17,047,277) - -
( 2,032,657) - ( 2,032,657) - -
( 3,250,067) - ( 3,250,067) - -
( 59,521,031) - ( 59,521,031) - -
( 1,622,848) - ( 1,622,848) - -
( 1,087,371) - ( 1,087,371) - -
( 2,923,743) - ( 2,923,743) - -
( 4,345,527) - ( 4,345,527) - -
( 128,556,204) - ( 128,556,204) - -
- 3 84,044 384,044 - -
- (868,143) (868,143) - -
- (199,557) (199,557) - -
- (69,735) (69,735) - -
- (753,391) (753,391) - -
$ (128,556,204) $ (753,391) $ (129,309,595) $ - $ -
$ - $ - $ - $ (99,735,361) $ -
- - - - ( 1,866,095)
- - - (99,735,361) ( 1,866,095)
65,185,546 - 65,185,546 - -
47,928,725 - 47,928,725 - -
169,679 - 169,679 - -
5,244,614 - 5,244,614 - -
559,555 - 559,555 - -
1,923,016 - 1,923,016 - -
- - - 92,555,521 1,741,473
174,691 3 20,443 495,134 2 2,942 1,972
161,106 - 161,106 - -
949,046 7 46,167 1,695,213 1 57,571 81,415
(201,122) 2 01,122 - - -
122,094,856 1,267,732 123,362,588 92,736,034 1,824,860
( 6,461,348) 5 14,341 ( 5,947,007) (6,999,327) ( 41,235)
72,423,457 92,334,749 164,758,206 127,874,162 838,486
$ 65,962,109 $ 92,849,090 $ 158,811,199 $ 120,874,835 $ 797,251
The accompanying notes to the basic financial statements are an integral part of this statement.
-35-

QUEEN ANNE'S COUNTY, MARYLAND
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2016
MAJOR FUNDS NON-MAJOR TOTAL
GENERAL GENERAL ROADS GOVERNMENTAL GOVERNMENTAL
FUND CAPITAL CAPITAL FUNDS FUNDS
ASSETS
Cash and Cash Equivalents $ 20,702,885 $ 16,460,546 $ 3,436,540 $ 13,304,677 $ 5 3,904,648
Prepaid Items 6,398 - - 7,491 1 3,889
Receivables
Taxes Receivable (Net) 731,829 - - 65,900 7 97,729
Accounts and Loans Receivable 249,531 1,310,477 14,830 6,370,057 7 ,944,895
Special Assessments (Net) - - 156,595 461,391 6 17,986
Due from Other Governments 9,702,417 350,968 - 551,095 1 0,604,480
Due from Other Funds 710,914 1,358,170 - - 2 ,069,084
Inventory 580,083 - - - 5 80,083
Restricted
Restricted Equity in Pooled Cash - 11,583,457 - - 1 1,583,457
Total Assets $ 32,684,057 $ 31,063,618 $ 3,607,965 $ 20,760,611 $ 8 8,116,251
LIABILITIES
Accrued Liabilities $ 3,498,350 $ 1,424,887 $ - $ 1,012,096 $ 5 ,935,333
Due to Other Funds - - - 327,982 3 27,982
Due to Component Units - 1,380,929 - - 1 ,380,929
Due to Other Governmental Agencies - - - 329,683 3 29,683
Unearned Revenue 670,710 53,907 - 185,219 9 09,836
Total Liabilities 4,169,060 2,859,723 - 1,854,980 8 ,883,763
DEFERRED INFLOWS OF RESOURCES
Unavailable Income Taxes 4,433,442 - - - 4 ,433,442
Unavailable Property Taxes 385,207 - - - 3 85,207
Unavailable Inter-County Bonds Receivable 712,105 - - - 7 12,105
Unavailable Benefit Assessments - - 156,595 461,391 6 17,986
Unavailable Fees - - - 1,297,700 1 ,297,700
Total Deferred Inflows 5,530,754 - 156,595 1,759,091 7 ,446,440
FUND BALANCES
Nonspendable 586,481 1,084,055 - 5,062,017 6 ,732,553
Restricted 9,002,389 9,529,196 - 11,786,892 3 0,318,477
Committed 3,000,000 2,815,139 610,562 - 6 ,425,701
Assigned 1,926,782 14,775,505 2,840,808 412,760 1 9,955,855
Unassigned 8,468,591 - - (115,129) 8 ,353,462
Total Fund Balances 22,984,243 28,203,895 3,451,370 17,146,540 7 1,786,048
Total Liabilities, Deferred Inflows and
Fund Balances $ 32,684,057 $ 31,063,618 $ 3,607,965 $ 20,760,611 $ 8 8,116,251
The accompanying notes to the basic financial statements are an integral part of this statement.
-36-

QUEEN ANNE'S COUNTY, MARYLAND
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2016
Total Fund Balance - Governmental Funds $ 7 1,786,048
Amounts reported for Governmental activities in the Statement of Net Position
are different because:
Receivables not included in the governmental funds because they relate to debt.
A portion of the County's 2014 Bond offering related to debt issued on behalf of
Chesapeake College. Although Queen Anne's County will submit the payments
to the lender for the bonds, there are five Counties total that will share the expense
of the debt service for the Chesapeake College project. A receivable is booked in
Government-Wide in order to offset the debt recorded on the books related to the
portion of the Chesapeake College project that the other Counties are responsible for.
ADD Accounts Receivable - Related to Chesapeake College Debt 4,464,493
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. At year end, a receivable is booked
for the interest reimbursement due, but not yet received, which relates to the
interest expense not paid yet.
ADD Bond Interest Reimbursement Receivable - Build America Bond 90,163
Capital assets used in governmental fund activities are not current financial resources
and therefore are not reported in the funds.
ADD Nondepreciable capital assets
Land and Land Improvements $ 4 3,304,831
Infrastructure 43,830,278
Construction in Progress 17,424,099 104,559,208
ADD Depreciable capital assets
Buildings 41,868,780
Improvements other than Buildings 10,202,783
Machinery and Equipment 20,669,720
Automobiles and Trucks 11,978,358
Infrastructure 18,785,758
Less Accumulated depreciation (46,402,532) 57,102,867
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 385,207
ADD Income Taxes deferred in governmental funds 4,433,442
ADD Loans receivable deferred in governmental funds 712,105 5,530,754
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 ( 1,420,658)
SUBTRACT Long-Term Liabilities Due within One Year
Accrued Compensated Absences (1,478,910)
Bonds and Notes Payable (9,029,669) ( 10,508,579)
SUBTRACT Long-Term Liabilities Due in More than One Year
Other Post-Employment Benefit Obligation (35,511,934)
Net Pension Liability (22,591,512)
Accrued Compensated Absences ( 965,846)
Bonds and Notes Payable (111,861,439) ( 170,930,731)
ADD / SUBTRACT Deferred Inflows and Outflows
Deferred Inflows - Maryland State Pension (1,846,942)
Deferred Outflows - Maryland State Pension 5,553,438
Deferred Charge On Refunding 1,582,048 5,288,544
Total Net Position - Governmental Activities $ 65,962,109
The accompanying notes to the basic financial statements are an integral part of this statement.
-37-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2016
MAJOR FUNDS NON-MAJOR TOTAL
GENERAL GENERAL ROADS GOVERNMENTAL GOVERNMENTAL
FUND CAPITAL CAPITAL FUNDS FUNDS
REVENUES
Taxes
Local Property Tax $ 64,912,515 $ - $ - $ 33,928 $ 64,946,443
Local Income Tax 46,424,552 - - - 4 6,424,552
Admission and Amusement Taxes 169,679 - - - 1 69,679
Recordation Taxes 4,036,356 - - 1 ,208,259 5 ,244,615
Hotel Taxes - - - 559,555 5 59,555
County Transfer Taxes 1,923,016 - - - 1 ,923,016
State Shared Taxes 611,835 - - 11,421 6 23,256
Licenses and Permits 624,570 - - 453,574 1 ,078,144
Intergovernmental 1,944,716 321,164 - 2 ,430,681 4 ,696,561
Bond Interest Reimbursement - Build America Bond 364,799 - - - 3 64,799
Charges for Current Services 2,265,561 36,116 1 22,332 2 ,193,721 4 ,617,730
Fines and Forfeitures 142,006 - - 108,104 2 50,110
Investment Income 92,664 40,184 1 5,692 26,151 1 74,691
Donations 3,638 - - 42,135 45,773
Miscellaneous 768,758 70,332 - 109,955 9 49,045
Total Revenues 124,284,665 467,796 1 38,024 7 ,177,484 132,067,969
EXPENDITURES
Current
General Government 7,840,346 1,015,017 - 382,964 9 ,238,327
Public Safety 22,422,112 587,079 - 513,912 2 3,523,103
Public Works 9,062,612 45,528 2,722,995 - 1 1,831,135
Health 1,992,208 - - - 1 ,992,208
Social Services 292,978 207,009 - 3 ,335,743 3 ,835,730
Education 54,645,127 6,163,016 - - 6 0,808,143
Library 1,597,000 - - - 1 ,597,000
Conservation of Natural Resources 530,028 20,313 - 1 ,193,919 1 ,744,260
Economic/Community Development 307,515 272,471 - 2 ,608,942 3 ,188,928
Parks 3,084,985 164,334 - - 3 ,249,319
Recreation 578,735 - - - 5 78,735
Intergovernmental 374,387 - - - 3 74,387
Miscellaneous 4,392,335 - - - 4 ,392,335
Capital Outlay - 10,335,239 7 15,145 - 1 1,050,384
Debt Service
Principal 7,622,891 - - 44,425 7 ,667,316
Debt Issuance Costs - 218,799 - - 2 18,799
Interest and Fiscal Charges 3,540,352 156,367 - - 3 ,696,719
Total Expenditures 118,283,611 19,185,172 3,438,140 8 ,079,905 148,986,828
Excess of Revenues Over (Under) Expenditures 6,001,054 (18,717,376) (3,300,116) (902,421) (16,918,859)
OTHER FINANCING SOURCES (USES)
Issuance of Debt - 14,611,885 3 62,978 509,776 1 5,484,639
Other Financing Source - Proceeds of Refunding Bonds - 8,042,773 - - 8 ,042,773
Bond Premiums - 1,650,448 - - 1 ,650,448
Other Financing Use - Principal on Refunded Debt - (8,446,336) - - (8,446,336)
Proceeds of Capital Asset Disposals 16,808 1,292 - - 18,100
Insurance Proceeds 120,865 32,169 - 500 1 53,534
Transfers In 1,268,187 3,371,482 2,968,945 2 ,332,437 9 ,941,051
Transfers Out ( 5,619,520) (3,131,080) (225,000) (1,268,187) (10,243,787)
Other Financing Sources (Uses) ( 4,213,660) 16,132,633 3,106,923 1 ,574,526 1 6,600,422
Net Increase (Decrease) in Fund Balances 1,787,394 (2,584,743) (193,193) 672,105 (318,437)
Fund Balances, July 1 21,196,849 30,788,638 3,644,563 1 6,474,435 7 2,104,485
Fund Balances, June 30 $ 22,984,243 $ 28,203,895 $ 3,451,370 $ 1 7,146,540 $ 71,786,048
The accompanying notes to the basic financial statements are an integral part of this statement.
-38-

QUEEN ANNE'S COUNTY, MARYLAND
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2016
Change in Fund Balances - Total governmental funds, per Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds $ ( 318,437)
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 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 $ 140,494
ADD capital assets resulting from general capital projects 10,405,049
ADD capital assets resulting from roads capital projects 661,230
SUBTRACT capital asset donations and transfers ( 1,419,926)
SUBTRACT book value of disposed capital assets, net of accumulated depreciation ( 740,748)
SUBTRACT current year depreciation expense ( 3,249,925)
Net Increase in Capital Assets 5,796,174
Receivables not included in the governmental funds because they relate to debt.
A portion of the County's 2014 Bond offering related to debt issued on behalf of Chesapeake College. Although Queen Anne's County
will submit the payments to the lender for the bonds, there are five Counties that will share the expense of the debt service for the
Chesapeake College project. A receivable is booked in Government-Wide in order to offset the debt recorded on the books related to the
portion of the Chesapeake College project that the other Counties are responsible for.
CHANGE in bond receivable related to 2014 bonds ( 167,217)
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.
CHANGE in bond interest reimbursement receivable - Build America Bond ( 3,309)
Liability for retirement incentive
As part of the retirement incentives offered in fiscal years 2011 and 2012, retirees were given a certain period of health insurance
at no cost, rather than the normal premium. The maximum period of no cost health insurance was three years. The liability for the
benefit offered to the retirees is included in the government wide statements and adjusted each year until the benefit period is over.
CHANGE in liability for the retirement incentive 4,416
Revenues that are earned but not collected within sixty days after the end of the fiscal year are not considered to
be "available" to meet current cash requirements and are deferred in the Governmental Funds to the following year. However, these revenues
are recognized in the Statement of Activities. The amount by which this type of deferred inflows increased or (decreased) relative to the
prior year is as follows:
CHANGE in Property Tax Deferred Inflows 239,102
CHANGE in Income Tax Deferred Inflows 1,504,172
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 liabilities.
ADD retirements and repayments made on long term debt 17,131,590
SUBTRACT proceeds of debt ( 25,177,860)
SUBTRACT College reimbursement received ( 197,588)
SUBTRACT College savings on refunding debt ( 24,367)
ADD County's allocation to College for debt 56,118
Change in Deferred Refunding Costs ( 283,001)
( 8,495,108)
Some accrued expenses, reported in the Statement of Activities, do not require the use of current financial
resources and are not reported as expenditures in the Governmental Funds.
Change in accrued Interest Payable ( 579,332)
Change in accrued Other Post Employment Benefit Obligation ( 1,591,588)
Change in Accrued Compensated Absences ( 146,836)
Change in deferred outflow of resources - Maryland State Pension (see Note 12) 3,032,144
Change in deferred inflow of resources - Maryland State Pension (see Note 12) ( 1,753)
Change in net pension liability - Maryland State Pension (see Note 12) ( 5,733,776)
Change in Net Position - governmental activities, per Statement of Activities $ ( 6,461,348)
The accompanying notes to the basic financial statements are an integral part of this statement.
-39-

QUEEN ANNE'S COUNTY, MARYLAND QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION STATEMENT OF NET POSITION
ENTERPRISE FUNDS ENTERPRISE FUNDS
JUNE 30, 2016 JUNE 30, 2016
(CONTINUED)
SANITARY DISTRICT
SEWER WATER RESTRICTED
ASSETS OPERATIONS OPERATIONS FUND
Current Assets
Unrestricted
Equity in Pooled Cash $ 7,373,084 $ 4 ,162,432 $ -
Accounts Receivable (Net) 472,361 206,952 -
Due from Other Funds 174,985 - -
Due from Other Governments 40,679 4,520 -
Bond Interest Reimbursement Receivable - Build America Bond - - -
Inventories 563,944 - -
Prepaid Expenses - - -
Restricted
Restricted Equity in Pooled Cash - - 6,794,963
Restricted Accounts Receivable (Net) - - 546,072
Total Current Assets 8,625,053 4,373,904 7,341,035
Noncurrent Assets
Restricted
Special Assessments Receivable (Net) - - 1,380,057
Capital Assets
Intangible Rights - 6,140 -
Land, Improved and Unimproved 814,531 - -
Buildings and Improvements to Buildings 12,977,010 180,203 -
Improvements Other Than Buildings 1,615,474 128,152 -
Vehicles 1,013,578 249,194 -
Equipment 20,622,447 1,510,249 -
Furniture and Fixtures 30,009 14,909 -
Infrastructure Improvements 55,619,401 2 3,889,982 -
Construction in Progress 1,141,356 - -
Capital Assets before Depreciation 93,833,806 2 5,978,829 -
Less Accumulated Depreciation (41,705,942) (8,928,132) -
Total Capital Assets, Net of
Accumulated Depreciation 52,127,864 1 7,050,697 -
Total Noncurrent Assets 52,127,864 1 7,050,697 1,380,057
Total Assets 60,752,917 2 1,424,601 8,721,092
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflow for Pension Contributions 371,578 108,655 -
Deferred Charge on Refunding - - -
Total Deferred Outflows of Resources 371,578 108,655 -
LIABILITIES
Current Liabilities
Payable from Unrestricted Assets
Accounts Payable 295,864 123,818 -
Accrued Interest Payable 43,321 - -
Escrow Deposits 48,707 - -
Due to Other Funds - - -
Unearned Revenue 467,924 - -
Current Portion of Compensated Absences 125,044 48,870 -
Current Portion of Bonds/Notes Payable 906,592 - -
Total Current Liabilities 1,887,452 172,688 -
Noncurrent Liabilities
Payable from Unrestricted Assets
Compensated Absences 81,663 31,916 -
Other Post-Employment Benefit Obligation 4,569,158 1,362,836 -
Net Pension Liability 1,470,921 429,518 -
Bonds/Notes Payable 9,565,047 - -
Total Noncurrent Liabilities 15,686,789 1,824,270 -
Total Liabilities 17,574,241 1,996,958 -
DEFERRED INFLOWS OF RESOURCES
Deferred Inflow for Pension Contributions 118,846 34,807 -
Unavailable Water and Sewer Assessments - - 1,380,057
Total Deferred Inflows of Resources 118,846 34,807 1,380,057
NET POSITION
Net Investment in Capital Assets 41,656,225 1 7,050,697 -
Amounts Restricted for:
Debt Service - - -
Capital Projects - - 753,300
Unrestricted Amounts (Deficit) 1,775,183 2,450,794 6,587,735
Total Net Position $ 43,431,408 $ 1 9,501,491 $ 7 ,341,035
The accompanying notes to the basic financial statements are an integral part of this statement.
-40-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET POSITION
ENTERPRISE FUNDS
JUNE 30, 2016
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ - $ 11,535,516 $ 975,760 $ 816,069 $ 1 3,327,345
- 679,313 36,681 10,861 726,855
- 174,985 - - 174,985
- 4 5,199 110,447 24,309 179,955
- - 584 3,121 3,705
- 563,944 23,874 7,952 595,770
- - 22,398 - 22,398
1,120,775 7,915,738 - - 7,915,738
611 546,683 - - 546,683
1,121,386 21,461,378 1,169,744 862,312 2 3,493,434
1,009 1,381,066 - - 1,381,066
- 6 ,140 - - 6,140
- 814,531 11,931,964 2,673,632 1 5,420,127
- 13,157,213 1,233,204 313,443 1 4,703,860
- 1,743,626 7,615,114 5,465,727 1 4,824,467
- 1,262,772 73,470 63,690 1,399,932
- 22,132,696 225,196 425,036 2 2,782,928
- 4 4,918 - 4,979 49,897
- 79,509,383 315,449 - 7 9,824,832
- 1,141,356 659,417 112,252 1,913,025
- 119,812,635 22,053,814 9,058,759 1 50,925,208
- ( 50,634,074) (3,922,902) (1,510,632) (56,067,608)
- 69,178,561 18,130,912 7,548,127 9 4,857,600
1,009 70,559,627 18,130,912 7,548,127 9 6,238,666
1,122,395 92,021,005 19,300,656 8,410,439 1 19,732,100
- 480,233 15,055 43,172 538,460
- - 18,743 25,170 43,913
- 480,233 33,798 68,342 582,373
- 419,682 18,153 46,898 484,733
- 4 3,321 33,023 13,723 90,067
- 4 8,707 16,900 - 65,607
174,985 174,985 1,308,296 432,806 1,916,087
- 467,924 - 2,455 470,379
- 173,914 5,582 22,917 202,413
- 906,592 135,078 184,978 1,226,648
174,985 2,235,125 1,517,032 703,777 4,455,934
- 113,579 3,645 14,967 132,191
- 5,931,994 245,770 250,670 6,428,434
- 1,900,439 59,239 170,058 2,129,736
- 9,565,047 2,033,294 1,167,509 1 2,765,850
- 17,511,059 2,341,948 1,603,204 2 1,456,211
174,985 19,746,184 3,858,980 2,306,981 2 5,912,145
- 153,653 4,847 13,885 172,385
796 1,380,853 - - 1,380,853
796 1,534,506 4,847 13,885 1,553,238
- 58,706,922 15,981,283 6,220,810 8 0,909,015
946,614 946,614 - - 946,614
- 753,300 - - 753,300
- 10,813,712 (510,656) (62,895) 1 0,240,161
$ 946,614 $ 71,220,548 $ 15,470,627 $ 6 ,157,915 $ 9 2,849,090
The accompanying notes to the basic financial statements are an integral part of this statement.
-41-

QUEEN ANNE'S COUNTY, MARYLAND QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE FUNDS ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2016 FOR THE YEAR ENDED JUNE 30, 2016
(CONTINUED)
SANITARY DISTRICT
SEWER WATER RESTRICTED
OPERATIONS OPERATIONS FUND
OPERATING REVENUES
Charges for Services $ 5,675,620 $ 2,230,254 $ 1,048,991
Intergovernmental 80,579 4,520 -
Bond Interest Reimbursement - Build America Bond - - -
Material Sales 442 5,268 -
Miscellaneous Revenues 27,967 145,512 -
Total Operating Revenues 5,784,608 2,385,554 1,048,991
OPERATING EXPENSES
Cost of Sales and Services
Collection 2,445,905 - -
Distribution - 166,443 -
Treatment 1,044,998 1,085,772 -
Shop 179,392 84,867 -
Airport - - -
Recreation - - -
Total Cost of Sales and Services 3,670,295 1,337,082 -
Administration and Inspection 650,437 541,162 -
Other Post-Employment Benefit Contributions 356,611 94,262 -
Pension Liability Adjustment 188,872 54,203 -
Depreciation 3,010,475 553,346 -
Total Operating Expenses 7,876,690 2,580,055 -
Operating Income (Loss) (2,092,082) (194,501) 1,048,991
NON-OPERATING REVENUES (EXPENSES)
Investment Income 100,415 85,556 122,569
Interest Expense (158,380) - -
Gain on Disposal of Capital Assets 344 132 -
Total Non-Operating Revenues (Expenses) (57,621) 85,688 122,569
Income (Loss) Before Contributions and Transfers (2,149,703) (108,813) 1,171,560
Capital Contributions, Fees and Grants 950,371 1,007,680 -
TRANSFERS
Transfers In 1,059,710 - 1,366,638
Transfers Out (5,000) (5,000) (1,052,371)
Net Transfers In (Out) 1,054,710 (5,000) 314,267
Change in Net Position (144,622) 893,867 1,485,827
Total Net Position - Beginning of Year 43,576,030 18,607,624 5,855,208
Total Net Position - End of Year $ 43,431,408 $ 19,501,491 $ 7,341,035
The accompanying notes to the basic financial statements are an integral part of this statement.
-42-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2016
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ 1,495 $ 8,956,360 $ 45,916 $ 728,955 $ 9,731,231
- 85,099 50,497 24,309 159,905
- - 2,340 12,472 14,812
- 5,710 219,132 45,020 269,862
- 173,479 283,391 19,435 476,305
1,495 9,220,648 601,276 830,191 10,652,115
- 2,445,905 - - 2,445,905
- 166,443 - - 166,443
- 2,130,770 - - 2,130,770
- 264,259 - - 264,259
- - 476,587 - 476,587
- - - 785,042 785,042
- 5,007,377 476,587 785,042 6,269,006
- 1,191,599 - - 1,191,599
- 450,873 4,846 20,941 476,660
- 243,075 7,044 20,509 270,628
- 3,563,821 393,080 145,471 4,102,372
- 10,456,745 881,557 971,963 12,310,265
1,495 (1,236,097) (280,281) (141,772) (1,658,150)
11,679 320,219 224 - 320,443
(817) (159,197) (85,339) (63,554) (308,090)
- 476 - 489 965
10,862 161,498 (85,115) (63,065) 13,318
12,357 (1,074,599) (365,396) (204,837) (1,644,832)
- 1,958,051 - - 1,958,051
1,052,371 3,478,719 58,905 152,217 3,689,841
(2,426,348) (3,488,719) - - (3,488,719)
(1,373,977) (10,000) 58,905 152,217 201,122
(1,361,620) 873,452 (306,491) (52,620) 514,341
2,308,234 70,347,096 15,777,118 6,210,535 92,334,749
$ 946,614 $ 71,220,548 $ 15,470,627 $ 6,157,915 $ 92,849,090
The accompanying notes to the basic financial statements are an integral part of this statement.
-43-

QUEEN ANNE'S COUNTY, MARYLAND QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CASH FLOWS STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2016
(CONTINUED)
SANITARY DISTRICT SANITARY DISTRICT
SEWER WATER RESTRICTED
OPERATIONS OPERATIONS FUND
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 5 ,421,245 $ 2 ,202,453 $ 5 09,735
Receipts from other operating sources 68,309 155,300 -
Receipts from bond interest reimbursement - Build America Bond - - -
Increase in accounts receivable - (4,520) -
Payments to suppliers (1,797,914) (847,159) -
Payments to employees and on behalf of employees (2,690,124) (995,736) -
Net Cash Provided by Operating Activities 1 ,001,516 510,338 509,735
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in from other funds 1 ,059,710 - 1 ,366,638
Receipts from interfund loans 212,793 - -
Transfers to other funds (5,000) (5,000) (1,052,371)
Principal paid on interfund loans - - -
Net Cash Provided (Used) by Noncapital Financing Activities 1 ,267,503 (5,000) 314,267
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from the disposition of capital assets 344 132 -
Adjustment for capital grants - - -
Principal paid on capital debt (897,616) - -
Proceeds from the sale of bonds - - -
Proceeds from refunding of long term debt - - -
Premium on sale of bonds - - -
Interest paid on capital debt (162,093) - -
Acquisition and construction of capital assets (811,409) (23,427) -
Net Cash (Used) by Capital and Related Financing Activities (1,870,774) (23,295) -
CASH FLOWS FROM INVESTING ACTIVITIES
Net Cash Provided by Investing Activities - Investment Income 100,415 85,556 122,569
Net Increase (Decrease) in Cash and Cash Equivalents 498,660 567,599 946,571
Balances - Beginning of the year 6 ,874,424 3 ,594,833 5 ,848,392
Balances - End of the year $ 7 ,373,084 $ 4 ,162,432 $ 6 ,794,963
Reconciliation of operating income (loss) to net cash
provided by operating activities
Operating income (loss) $ (2,092,082) $ (194,501) $ 1 ,048,991
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation 3 ,010,475 553,346 -
Effect of changes in operating assets and liabilities:
Accounts receivable, net (153,626) (27,801) (539,256)
Special assessments receivable, net - - (427,479)
Operating grants receivable (40,679) (4,520) -
Build America Bonds Interest receivable - - -
Inventories and Prepaid Expenses (40,039) - -
Vendor accounts payable (141,809) 31,424 -
Compensated absences 14,542 3,925 -
Other Post-Employment Benefit Obligation 356,611 94,262 -
Pension Obligation 188,872 54,203 -
Escrow deposits payable (241) - -
Deferred revenue collected in advance (100,508) - 427,479
Net Cash Provided by Operating Activities $ 1 ,001,516 $ 5 10,338 $ 5 09,735
Noncash investing, capital and financing activities:
Donation of capital assets (infrastructure) by developers $ 9 50,371 $ 1 ,007,680 $ -
The accompanying notes to the basic financial statements are an integral part of this statement.
-44-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2016
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ 21,031 $ 8 ,154,464 $ 33,265 $ 7 18,947 $ 8 ,906,676
- 223,609 553,020 84,356 860,985
- - 2,361 12,572 14,933
- (4,520) - - (4,520)
- (2,645,073) (408,910) (427,488) (3,481,471)
- (3,685,860) (119,615) (348,620) (4,154,095)
21,031 2 ,042,620 60,121 39,767 2 ,142,508
1 ,052,371 3 ,478,719 58,905 152,217 3 ,689,841
174,985 387,778 1 ,308,296 432,806 2 ,128,880
(2,426,348) (3,488,719) - - (3,488,719)
(387,778) (387,778) - (396,254) (784,032)
(1,586,770) (10,000) 1 ,367,201 188,769 1 ,545,970
- 476 - 489 965
- - (42,142) - (42,142)
(19,663) (917,279) (175,513) (488,122) (1,580,914)
- - 101,614 85,636 187,250
- - 88,165 339,062 427,227
- - 13,516 33,868 47,384
(885) (162,978) (75,530) (66,449) (304,957)
- (834,836) (399,238) (123,971) (1,358,045)
(20,548) (1,914,617) (489,128) (219,487) (2,623,232)
11,679 320,219 224 - 320,443
(1,574,608) 438,222 938,418 9,049 1 ,385,689
2 ,695,383 1 9,013,032 37,342 807,020 1 9,857,394
$ 1 ,120,775 $ 19,451,254 $ 9 75,760 $ 8 16,069 $ 21,243,083
$ 1,495 $ (1,236,097) $ (280,281) $ (141,772) $ (1,658,150)
- 3 ,563,821 393,080 145,471 4 ,102,372
14,192 (706,491) (16,001) (9,989) (732,481)
6,839 (420,640) - - (420,640)
- (45,199) - (4,408) (49,607)
- - 21 100 121
- (40,039) (20,538) (1,145) (61,722)
- (110,385) (34,323) 6,983 (137,725)
- 18,467 2,923 3,096 24,486
- 450,873 4,846 20,941 476,660
- 243,075 7,044 20,509 270,628
- (241) 3,350 - 3,109
(1,495) 325,476 - (19) 325,457
$ 21,031 $ 2 ,042,620 $ 60,121 $ 39,767 $ 2 ,142,508
$ - $ 1 ,958,051 $ - $ - $ 1 ,958,051
The accompanying notes to the basic financial statements are an integral part of this statement.
-45-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF FIDUCIARY NET POSITION
PRIVATE PURPOSE TRUST, OTHER POST-EMPLOYMENT BENEFIT TRUST, AND AGENCY FUNDS
JUNE 30, 2016
PRIVATE
PURPOSE
TRUST FUND OTHER
TAX SALE POST-EMPLOYMENT AGENCY
DEPOSITS BENEFIT TRUST FUND FUNDS
ASSETS
Cash and Cash Equivalents $ 115,619 $ 3 ,498,418 $ 6 16,029
Total Assets 115,619 3 ,498,418 $ 6 16,029
LIABILITIES
Due to Other Governments - 1 57,033 $ 2 21,024
Deposits and Escrows - - 3 95,005
Total Liabilities - 1 57,033 $ 6 16,029
NET POSITION
Held in Trust $ 115,619 $ 3 ,341,385
The accompanying notes to the basic financial statements are an integral part of this statement.
-46-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE PURPOSE TRUST AND OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2016
PRIVATE
PURPOSE
TRUST FUND
TAX SALE
DEPOSITS
ADDITIONS
Total Additions - Tax Sale Collections in Excess of Tax Due $ 1 0,629
DEDUCTIONS
Distributions to Property Holders 59,238
Distributions to General Fund per State Statute 71,216
TOTAL DEDUCTIONS 130,454
Change in Assets ( 119,825)
NET POSITION HELD IN TRUST
Net Position-Beginning of Year 235,444
Net Position-End of Year $ 115,619
OTHER
POST-EMPLOYMENT
BENEFIT TRUST FUND
ADDITIONS
CONTRIBUTIONS
Employers $ 3,895,015
Members 1,068,469
TOTAL CONTRIBUTIONS 4,963,484
Investment Income 7,616
Total Additions 4,971,100
DEDUCTIONS
Claims Paid 4,125,485
Miscellaneous Fees 5
Total Deductions 4,125,490
Change in Assets 845,610
NET POSITION HELD IN TRUST
Net Position-Beginning of Year 2,495,775
Net Position-End of Year $ 3,341,385
The accompanying notes to the basic financial statements are an integral part of this statement.
-47-

QUEEN ANNE'S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
INDEX
Note
1 Summary of Significant Accounting Policies 49-60
2 Budgets and Budgetary Accounting 60-61
3 Cash, Investments and Investment Income 62-63
4 Accounts Receivable 64-65
5 Unearned Revenue 66
6 Capital Assets 67-71
7 Interfund Receivables and Payables 72
8 Interfund Transfers 73
9 Noncurrent Liabilities 74-83
10 Restricted Assets and Liabilities
and Fund Balances 84-86
11 Risk Management 87
12 Retirement Plans 88-97
13 Deferred Compensation Plan 97
14 Other Post-Employment Benefits 97-103
15 Deficit Equity Balances 104
16 Commitments and Contingencies 104-105
17 Joint Venture 106
18 Pollution Remediation Obligations 107
-48-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the County conform to accounting principles generally accepted in the United States of
America (GAAP) applicable to local government entities. The following is a summary of significant policies.
A. REPORTING ENTITY
Queen Anne’s County, Maryland (the County) was founded in 1706. The County is governed by five Commissioners who are
elected to serve four-year terms. This board assumes responsibilities conferred upon them by the Maryland General Assembly
under Code Home Rule and provides the following services: public safety, public facility/infrastructure maintenance and
improvements, sanitation, health and social services, education, recreation and culture, library, conservation of natural resources,
economic and community development, and general administrative services.
As required by GAAP, these financial statements present the primary government and its component units, which are entities for
which the primary government is considered financially accountable. The decision to include a potential component unit in the
financial reporting entity was made by applying the criteria set forth in the Government Accounting Standards Board (GASB)
Statements No. 14 and 39. Blended component units, although separate entities, are in substance, part of the government’s
operations. However, each discretely presented component unit is reported in a separate column in the government-wide
financial statements (see note below for descriptions) to emphasize that it is legally separate from the government.
Blended Component Units
The Queen Anne’s County Sanitary District serves citizens of the government and is governed by a board comprised of the
government’s elected Commissioners. The rates for user charges and bond issuance authorizations are approved by the Board
of Commissioners and the legal liability for the general obligation portion of the District’s debt remains with the government.
The Sanitary District is reported as an enterprise fund.
The Queen Anne’s County Roads Board serves all the citizens of the government and is governed by a board comprised of the
government’s elected Commissioners. All operations of the Roads Board are approved by the Board of Commissioners and the
legal liability for any debt remains with the government. The Roads Operating Fund is included in with the General Fund.
Discretely Presented Component Units
Components units are legally separate entities that are included in the County’s reporting entity because of the significance of
their operating or financial relationships with the County. The criteria for including organizations as component units within the
County’s reporting entity include whether:
 the organization is legally separate
 the County Commissioners appoint a voting majority of the organization’s board
 the County Commissioners have the ability to impose their will on the organization
 the organization has the potential to impose a financial benefit/burden on the County
 the organization is fiscally dependent on the County
Based on the application of these criteria, the following organizations are considered component units of Queen Anne’s County
Government. Their financial data is discretely presented in separate columns in the government-wide financial statements. Both
discretely presented component units have a June 30 year end.
The Board of Education of Queen Anne’s County is a five-member body responsible for the operation of Queen Anne’s
County Schools. Beginning with the November 2008 election, the members were elected by the County voters. The Board of
Education is a component unit of Queen Anne’s County, Maryland by virtue of the Board’s fiscal dependency on the County
through the County’s responsibility for levying taxes, issuing debt, and its budgetary control over the Board of Education.
The Queen Anne’s County Free Library is a component unit of the Queen Anne’s County Government by virtue of the
Library’s fiscal dependency on the County. The County levies taxes and approves the Library’s budget. The Library Board of
Trustees governs the Library. Vacancies on the Board of Trustees are filled by vote of the remaining members of that Board.
-49-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. REPORTING ENTITY (CONTINUED)
Discretely Presented Component Units (continued)
Complete financial statements of the discretely presented component units can be obtained from their respective administrative
offices listed below:
Board of Education of Queen Anne’s County
Queen Anne’s County Free Library
202 Chesterfield Avenue 121 S. Commerce Street
Centreville, Maryland 21617 Centreville, MD 21617
Joint Venture
The operation of the Midshore Regional Landfill is considered a joint venture of the County. Disclosure of the County’s
participation in this joint venture is presented in Note 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.
For the most part, the effect of interfund activity has been removed from these 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.
Statement of Net Position – This statement is designed to display the financial position of the reporting entity as of year-end.
Governments report all capital assets, including infrastructure, in the government-wide Statement of Net Position and report
depreciation expense, the cost of “using up” capital assets, in the Statement of Activities. Net position is divided into three
categories: 1) net investment in capital assets; 2) restricted amounts; and 3) unrestricted amounts. Net Investment in capital
assets consists of capital assets, net of accumulated depreciation, and reduced by the outstanding balances of any bonds,
mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those capital
assets. Restricted amounts are assets for which constraints are placed due to restrictions that are either (1) externally imposed by
creditors, grantors, contributors, or laws and regulations of the government, or (2) imposed by law through constitutional
provisions or enabling legislation. Unrestricted amounts consist of net assets that do not meet the definition of restricted or
invested in capital assets.
-50-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)
Statement of Activities – This statement demonstrates the degree to which the direct expenses of a given function for the fiscal
year are offset by program revenues. Therefore, this statement reflects both the gross and net costs per functional category
(general government; public safety; public works; health; social services; education; library; conservation of natural resources;
and economic/community development) that are otherwise supported by general revenues. Direct expenses (including
depreciation) are those that are clearly identifiable with a specific function. Program revenues include: 1) charges to customers
or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2)
grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. The
operating grants and contributions column includes operating-specific and discretionary (either operating or capital) grants,
while the capital grants and contributions column reflects capital-specific grants. Taxes and other items not properly included
among program revenues are reported as general revenues. The County does not allocate indirect expenses.
Fund Financial Statements – Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial
statements.
In the fund financial statements, financial transactions and accounts of the County are organized on the basis of funds, each of
which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-
balancing accounts that comprise assets, liabilities, fund balance/net assets, revenues, and expenditures/expenses.
Governmental Fund Budget-to-Actual Comparison Statements – Demonstrating compliance with the legally adopted
budget is an important component of government’s accountability to the public. The County provides a budget-to-actual
comparison of the General Fund as part of the required supplementary information section located after the Notes to the basic
financial statements. A budget-to-actual comparison is provided for the General Fund on a departmental level as required
supplementary information, and for all non-major governmental funds with legally adopted budgets in the supplementary
information section.
The County and many other governments revise their original budgets over the course of the year for a variety of reasons; the
County’s amended budget is reflected in a separate column in the budget-to-actual comparison statements. Variances are
calculated based on final budgets.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
Measurement Focus and Basis of Accounting
Full Accrual Basis Financial Statements – The government-wide financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Property taxes are recognized as revenue in the year in which they are levied. Grants and similar items are recognized as
revenues as soon as all eligibility requirements imposed by the provider have been met. Capital assets and related depreciation
are recorded in these statements, as well as debt, accrued compensated absences, other post-employment benefits, and other
accruals.
Modified Accrual Basis Financial Statements – Governmental fund financial statements are reported using the current
financial resources measurement focus and the modified accrual basis of accounting.
-51-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
Revenues are recorded as soon as they are susceptible to accrual (i.e., when they are both measurable and available). Revenues
are considered to be available when they are collectible within the current period, or soon enough thereafter to pay liabilities of
the current period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures are recorded only when payment has matured and is due. Similarly, expenditures related to claims,
judgments, compensated absences, and other post-employment benefits are recorded only to the extent that they are expected to
be liquidated with expendable available financial resources. Capital assets, and related depreciation, as well as long-term
liabilities are not recorded in these statements.
In applying the susceptible to accrual concept to income taxes (distributed by the State), property taxes, and inter-governmental
revenues other than grants, the County defines “available” as received within 60 days after year-end.
In the State of Maryland, the State has assumed responsibility for the collection of all income taxes and for distributing those
collections to the respective counties. The counties set their individual tax rates within limits provided by State law. However,
collection and pursuit of delinquent taxes are the responsibility of the State. The County records estimated receivables relating
to income taxes when the underlying income is earned. Amounts not received within 60 days are reported as deferred inflows of
resources. At year-end, deferred revenue relating to income taxes primarily includes the final fiscal year distribution (which is
normally received in September after the fiscal year-end) and amounts related to late filers, delinquent returns and audits, and
unallocated withholding, all of which are not received within the County’s availability period. Most deferred inflows are
expected to be received from the State within the next fiscal year; however, collections related to delinquent returns and audits as
well as unallocated withholding may not be remitted to the County for several years.
In applying the susceptible to accrual concept to operating and capital grants, which are classified with intergovernmental
revenues in the fund financial statements, the County records receivables when the applicable eligibility requirements including
time requirements are met. Related revenues are recognized to the extent that cash is expected to be received within one year of
year-end. Resources received before the eligibility requirements are met are reported as unearned revenue.
Licenses and permits, charges for services, and miscellaneous revenues (except earnings on investments) are generally recorded
as revenues when received in cash during the year. At year-end, receivables are recorded for significant amounts due. If such
amounts are received in cash after year-end within the County’s 60-day availability period, they are recognized as revenue.
Benefit assessment receivables not billed at year end are reported as deferred inflows of resources.
Fiduciary Funds – The County’s trust fund financial statements are reported using the economic resources measurement focus
and accrual basis of accounting, as is used by proprietary funds. Agency funds report only assets and liabilities; they do not
report changes in net position. Therefore, agency funds are reported using the accrual basis of accounting to recognize
receivables and payables. Activity during the year is accounted for as additions to and deductions from asset and liability
accounts (for Agency Funds) and Net Position (for Private Purpose and Other Post-Employment Benefit Trust Funds). Since
fiduciary funds are, by their very nature, independent of the County, they are omitted from all government-wide statements.
Financial Statement Presentation - The County reports the following major governmental and proprietary funds, as well as
fiduciary funds.
-52-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
General Fund – This fund is the general operating fund of the County. It is used to account for all financial resources
except those required or recommended, by GAAP, to be accounted for in another fund.
Capital Projects Funds –
General Capital Projects - This fund accounts for financial resources to be used for the acquisition or
construction of major capital facilities, as well as other large multi-year projects that relate to capital assets, that
are financed from general governmental resources.
Roads Capital Projects - This fund accounts for financial resources to be used for the construction of County
Road infrastructure, as well as other large multi-year projects that relate to capital assets, that are financed from
grants received from State and Federal Governments, Highway User Tax funds, and general governmental
resources.
Non-Major Governmental Funds – There are twenty non-major governmental funds, which are used to account for
and report the proceeds of specific revenue sources. Included in the twenty non-major governmental funds are
seventeen special revenue funds and three capital project funds.
Major Enterprise Funds - Enterprise Funds are used to account for those activities of the Primary Government that
are financed and operated in a manner similar to private business enterprises in that all costs and expenses, including
depreciation, are recovered primarily or partially through user charges. The Sanitary District Funds are intended to be
self-supporting as a whole, while the Airport is intended to be only partially self-supporting. The County reports the
following major enterprise funds:
Sanitary District -
Sewer Operations - This fund is used to account for the operation of the sewer system serving
approximately 7,000 customers.
Water Operations - This fund is used to account for the operation of the water supply system
serving approximately 4,300 customers.
Restricted Fund - This fund is used to account for the proceeds of sewer and water capacity
charges (one-time allocation fees) and is used to fund capital and debt service expenses.
Debt Service Fund - This fund is used to account for the collection of special benefit assessments,
and financial resources from other sources, to fund debt associated with construction of water and
sewer facilities in accordance with debt covenants.
Bay Bridge Airport – This fund is used to account for the operation of the County’s airport that serves small,
private aircraft.
-53-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
Non-Major Enterprise Funds – Non-major Enterprise Funds account for activities which are commercial in nature
and are primarily or partially intended to be self-supporting. The County has two non-major enterprise funds, neither
of which is meant to be fully self-supporting. These funds include the Golf Course and Public Landings and Marinas.
Fiduciary Funds – Fiduciary Funds are used to report assets held in a trustee or agency capacity for entities other than
the County. The County reports the following fiduciary fund types:
Private-Purpose Trust Fund – This fund accounts for an arrangement under which monies received at tax
sale, in excess of taxes due, are legally held in trust for property owners who have not been located within a
legally-defined time frame.
Other Post-Employment Benefit Trust Fund– This fund accounts for the funding of retiree benefit plans of
Queen Anne’s County and other participating agencies, which are the Queen Anne’s County Board of
Education and Queen Anne’s County Free Library. Other agencies and political subdivisions have
the right to participate in this Trust Fund also, as an investment vehicle for their Other Post-
Employment Benefit Plan through the pooling of investment resources. Currently, the only other
agency participating is Kent County, Maryland.
Agency Funds - These funds are used to account for assets held in a purely custodial capacity where the
County receives, temporarily invests, and remits such resources to individuals, private organizations or other
governments. These monies include escrow deposits for tax ditches, zoning deposits, state and town tax
collections, motor vehicle administration deposits, and abandoned property.
Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year’s
presentation.
The financial statements of the County have been prepared in conformity with generally accepted accounting
principles (GAAP) as applied to local government units. The Governmental Accounting Standards Board (GASB) is
the accepted standard-setting body for establishing governmental accounting and financial principles. The most
significant of the County’s accounting policies are described below.
In the process of aggregating data for the Statement of Net Position and the Statement of Activities, some amounts reported as
interfund activity and balances in the funds should be eliminated or reclassified. As a general rule, the effect of interfund activity
has been eliminated from the government-wide financial statements. The effect of interfund services provided and used between
functions has not been eliminated in the Statement of Activities, since to do so would distort the direct costs and program
revenues reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal
ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services.
Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on
capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
-54-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY
1) Cash and Investments
Cash and Cash Equivalents – For Statement of Cash Flows reporting purposes, the County has defined “cash
equivalents” as short-term, highly liquid investments that are both readily convertible to known amounts of cash
and so near their maturity that they present an insignificant risk of changes in value because of changes in interest
rates. Generally, only investments with maturities of three months or less at time of purchase meet this definition.
The balance sheet classification for “cash and cash equivalents” in the Statement of Cash Flows includes the
following: “Equity in pooled cash and investments,” “Cash and cash equivalents,” and “Restricted Equity in
pooled cash and investments.”
2) Receivables and Payables
Due To/From Other Funds and Internal Balances – Activity between funds that are representative of
lending/borrowing arrangements outstanding at the end of the year are current and are referred to as “due to/from
other funds.” On the Statement of Net Position, these balances are referred to as “internal balances” and are
reported as positive and negative “assets” that net to zero for the primary government as a whole.
Trade Accounts Receivable – Trade and other receivables are shown net of an allowance for uncollectible
accounts. The allowance for uncollectible accounts is calculated based on historical collection data and, in some
cases, specific account analysis.
3) Inventories, Prepaids, and Other Assets
Inventories consisting of materials, parts and supplies are stated at the lower of cost or market with cost
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.
-55-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
4) Capital Assets (continued)
Major outlays for capital assets and improvements are capitalized as the projects are constructed. Interest is
capitalized on proprietary fund assets acquired with tax-exempt debt. The amount of interest to be capitalized is
calculated by offsetting interest expense, incurred from the date of the borrowing until completion of the project,
with interest earned on invested proceeds over the same period. Capital projects that are under construction and
not yet ready for their intended use at year-end are classified as “construction in progress” (CIP).
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Assets Years
Buildings and structures 20 - 50
Improvements other than buildings 15 - 50
Infrastructure 20 - 50
Machinery and equipment 3 - 20
Office furniture, fixtures and equipment 5 - 15
Vehicles 7 – 10
5) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of
net position that applies to a future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then.
In addition to liabilities, the statement of financial position will report a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of
net position that applies to a future period(s) and so will not be recognized as an inflow of resources until that
time.
6) Other Post-Employment Benefit Obligation
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, 2016, the other post-employment
benefit obligation amounted to $41,940,368, including both governmental ($35,511,934) and business-type
activities ($6,428,434).
Component Unit - Board of Education – For the year ended June 30, 2016, the other post-employment benefit
obligation for the Board of Education amounted to $46,364,269.
Component Unit – Free Library – For the year ended June 30, 2016, the other post-employment benefit
obligation for the Library amounted to $1,270,777.
-56-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
7) Net Pension Liability
The Queen Anne’s County government participates in the Maryland State Retirement and Pension
Systems. Beginning in fiscal year 2015, the County was required to report the net pension liability
associated with this system. Additional details regarding retirement benefits can be found in Note 12.
Primary Government –For the year ended June 30, 2016, the net pension liability amounted to $24,721,248,
including both governmental ($22,591,512) and business-type activities ($2,129,736).
Component Unit - Board of Education – For the year ended June 30, 2016, the net pension liability for the
Board of Education amounted to $4,546,868.
8) Compensated Absences
Primary Government – The County’s policy is to pay employees for any unused vacation time, up to a
maximum of 65 days, upon termination of employment. Compensated absences are reported in governmental
funds only if they have matured, such as payments upon termination of employment, vacation, and compensatory
time paid as they are used during the year. Such time is paid as regular wages. Compensated absences are
reported in enterprise funds as they are accrued. In the government-wide statements, the liability for compensated
absences is adjusted at the end of each fiscal year to current salary costs. Accumulated unpaid leave of the
County amounted to $2,779,360 at June 30, 2016, including both governmental ($2,444,756) and business-type
activities ($334,604).
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, 2016 amounted to $998,798. Because payment of sick leave is contingent upon an 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.
9) Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-
term debt and other long-term obligations are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund type statements of net assets. Bond premiums are deferred and
amortized over the life of the bonds using the bonds outstanding method. Bonds payable in the proprietary fund
financial statements and noncurrent liabilities in the government-wide financial statements are reported net of the
applicable bond premium or discount. Bond issuance costs are reported in the period in which they have been
incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance costs, during the current period. The face amount of debt issued is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as expenditures. When debt is refunded in an advance refunding, payments to the
Bond Refunding Agent and associated bond issuance costs are reported as other financing uses. When debt is
refunded in a current refunding, the principal on refunded debt is reported as other financing uses.
-57-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
10) Net Position/Fund Equity
In the government-wide financial statements, the County has reported an unrestricted net deficit of $68,327,344.
This deficit is due to the fact that the County issues general obligation bonded debt for purposes of capital
construction on behalf of the Queen Anne’s County Board of Education. The capital assets constructed with the
proceeds of this debt are reported on the financial statements of Queen Anne’s County Board of Education. This
amount is also classified as net investment in capital assets in the Board of Education column of the Component
Units section of the County’s government-wide Statement of Net Position. Since the Board of Education is not
authorized to borrow funds, they do not have any debt.
Since the issuance of such debt has not resulted in capital assets owned by the Primary Government, the effect of
this debt is reflected in a deficit balance in unrestricted net assets in the Governmental Activities column of the
government-wide Statement of Net Position. At June 30, 2016, the County has reported outstanding general
obligation debt related to assets held by the Board of Education amounting to $63,271,304 (of which
$62,895,210 has been spent and the remaining $376,094 relates to unspent bond proceeds). Absent the effect of
this relationship, the County would have reported an unrestricted net deficit of $5,056,040 for governmental
activities.
The County reports a portion of its net position in its government-wide financial statements as restricted. In this
context, restricted means that, as of June 30, 2016, this portion of net position was restricted for a particular
purpose either by external parties; by provision of the County Charter; or by enabling legislation. Net position
restricted by enabling legislation 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 position
attributed to revenue streams that are restricted for specified purposes in the County Code. This generally
includes the Rainy Day Fund, Capital Projects Fund impact fee collections and developer exactions on hand for
outside entities; restricted amount for special revenue funds; and ending restricted net assets of the Sanitary
District and other enterprise funds. Such amounts, which are restricted in the government-wide statement of Net
Position, are as follows at year-end:
Restricted Amounts
Governmental activities $ 21,063,295
Business-type activities:
Debt Service $ 9 46,614
Capital Projects 7 53,300 1,699,914
Total Restricted Amounts $ 22,763,209
Note that unspent bond proceeds of $9,255,182 are included in restricted fund balance for the General
Capital Projects Fund. At the Government-Wide level, the unspent bond proceeds are offset by the
liability.
-58-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
10) Net Position/Fund Equity (continued)
In the fund financial statements, fund balances of governmental funds are classified as follows:
Nonspendable – amounts that cannot be spent either because they are not in a spendable form or because they
are legally or contractually required to be maintained intact. Nonspendable fund balances for the County include
inventory, prepaid items, and loans receivable.
Restricted – amounts that can be spent only for specific purposes because of constitutional provisions or
enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or
the laws or regulations of other governments.
Committed – amounts that can be used only for specific purposes determined by a formal action of the Queen
Anne’s County Commissioners. The Commissioners are the highest level of decision-making authority for the
County. Commitments may be established, modified, or rescinded only through formal actions such as a County
Ordinance approved by the County Commissioners.
Assigned – amounts that do not meet the criteria to be classified as restricted or committed but that are intended
to be used for specific purposes. The assignment of funds rests with the County Commissioners. In addition,
GASB 54 requires all positive residual amounts in special revenue funds to be reported as assigned.
Unassigned – all other spendable amounts; however, the General Fund is the only fund permitted to have a
positive unassigned fund balance. Negative unassigned fund balances may occur in other governmental funds.
The County typically uses restricted fund balances first, followed by committed resources, and then assigned
resources, as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first
to defer the use of these other classified funds.
11) Property Tax
The County's real property tax is levied each July 1 on the assessed values certified as of that date for all taxable
real property located in the County. The levy functions as a lien against the property. Assessed values are
established by the Maryland State Department of Assessments and Taxation at estimated market value. A
revaluation of all property is required to be completed every three years. Taxes are then billed to property owners
and collected by the County. Property represented by delinquent taxes is sold at a public auction in May of the
following calendar year, with title transferring after foreclosure proceedings have been completed.
For small businesses that meet certain criteria and also principal residences, an installment plan is offered
whereby total tax is paid in two equal installments. The first installment is due by September 30. Beginning
October 1, a 1% penalty is charged on the first day of each month that the installment remains unpaid. This 1%
penalty is based on the amount of the first installment only. The second installment is due by December 31.
Beginning January 1, the 1% penalty would then include all outstanding balances. The County accepts partial
payments.
For non-principal residences, payment is due in full by September 30. Beginning October 1, a penalty is charged
for each month that taxes remain unpaid. For new construction, completed and assessed between July 1 and
December 31, a supplementary tax is levied equal to half of the full-year levy. Payment in full is due by March
31. Beginning April 1, a penalty is charged for each month that taxes remain outstanding.
-59-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY (CONTINUED)
11) Property Tax (continued)
Real and personal property taxes are levied at rates enacted by the County Commissioners in the annual
budget on the assessed value as determined by the Maryland Department of Assessments and Taxation.
The rates of levy cannot exceed the constant yield rate furnished by the Maryland Department of
Assessments and Taxation without public notice and only after public hearings. The County tax rate for
the fiscal year ended June 30, 2016 was $0.8471 per $100 of assessed value.
E. NEW ACCOUNTING PRONOUNCEMENTS
The County adopted the provisions of the following Governmental Accounting Standards Board Statements:
Statement No. 72, entitled Fair Value Measurement and Application
Statement No. 76; entitled, The Hierarchy of Generally Accepted Accounting Principles for State and Local
Government
The County will be analyzing the effects of these pronouncements and plans to adopt them as applicable by their effective
date.
Statement No. 73, entitled, Accounting and Financial Reporting for Pensions and Related Assets That Are Not
within the Scope of GASB Statement 68, and Amendments to certain Provisions of GASB Statements 67 and 68;
GASB Statement No. 74 entitled, Financial Reporting for Postemployment Benefit Plans Other Than Pension
Plans; GASB Statement No. 75, entitled, Accounting and Financial Reporting for Postemployment Benefits
Other Than Pensions; GASB; and GASB Statement No. 77; entitled, Tax Abatement Disclosures.
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING
Pursuant to the Code of Public Local Laws of Queen Anne's County, the County Commissioners adopt an annual
operating budget and real property tax rate prior to July 1 each year. This action, taken after public hearings, provides
the spending authority for the fiscal year beginning on July 1. Unexpended and unencumbered appropriation authority
expires the following June 30, except in the case of Capital Projects where appropriations lapse only upon completion or
cancellation of each project by the County Commissioners. The appropriated budgets are prepared at the fund, function,
and departmental level. Expenditures/expenses may not legally exceed appropriations, based on the level at which they
were adopted. For the General Fund, annual expenditure budgets are legally adopted at the departmental level. For all
other Governmental Funds, for which annual budgets are adopted, expenditure budgets are legally adopted at the fund
level.
-60-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING (CONTINUED)
During the fiscal year, the Commissioners may adopt supplemental appropriations. For the year ended
June 30, 2016, supplemental appropriations were as follows:
Original Final Increase/
Supplemental Appropriations Budget Budget (Decrease)
General Fund - expenditures and transfers $ 125,160,950 $ 126,407,631 $ 1,246,681
Special Revenue Funds that adopt annual budgets
Non-Major Funds that adopt annual budgets -
Department of Aging - expenditures $ 2,503,227 $ 2,504,029 $ 802
Housing & Community Services - expenditures 1 ,168,571 1,713,041 544,470
Economic Development Incentive- expenditures 4 66,025 1,266,025 800,000
Community Partnerships for Children - expenditures 1 ,274,932 1,067,632 (207,300)
Franchise Fee - expenditures & transfers 4 00,000 529,714 129,714
Hotel Tax - expenditures & transfers 5 20,000 929,105 409,105
Agricultural Transfer - expenditures 4 0,000 278,000 238,000
Rural Legacy - expenditures - 555,233 555,233
Dredging Special Assessments - expenditures 4 4,425 554,201 509,776
Fire Company Impact Fees - expenditures 2 00,500 294,765 94,265
Total Special Revenue Funds that adopt annual budgets $ 6,617,680 $ 9,691,745 $ 3,074,065
All final budgets are presented as amended. The County Administrator may approve budget amendments of $10,000 or
less throughout the year. Amendments greater than $10,000 require the approval of the County Commissioners.
Annual operating budgets are legally adopted for the General Fund (includes the Roads Board) and the following non-
major governmental funds: Department of Aging, Housing and Community Services, Economic Development Incentive,
BRIDGE, Community Partnerships for Children, Franchise Fee, Hotel Tax, Law Library, Inmate Welfare, Agricultural
Transfer, Rural Legacy, Dredging Special Assessments, Kent Narrows, School Impact Fees Capital Projects, Fire
Company Impact Fees Capital Projects, and Parks and Recreation Impact Fees Capital Projects. Proprietary Fund
budgets are adopted for management control only and include all enterprise funds. Budgets are adopted using the same
method of accounting as that used for Fund reporting purposes.
Budgets for the General Capital Projects Fund and the Roads Capital Projects Fund reflect multi-year appropriations at
the individual project level. Expenditures may not legally exceed appropriations at that level and appropriations lapse at
the completion or cancellation of individual projects. Since these capital projects funds do not adopt an annual budget
per project, a Statement of Revenues, Expenditures, and Changes in Fund Balances on a budget-to-actual basis is not
presented for these funds.
No General Fund departments exceeded their legally adopted expenditure budgets for the year ended June 30, 2016.
However, salary reversions are budgeted as a lump sum negative $1,080,000, but actual amounts are realized in the
individual departments and are not reported as a lump sum in the reversions activity.
-61-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME
A. DEPOSITS AND INVESTMENTS
PRIMARY GOVERNMENT AND FIDUCIARY FUNDS
Cash and investments were as follows at year-end:
Collected
Carrying Bank Balances Total
Amount or Fair Value Collateral
Demand Deposit Accounts, Short-Term
Certificates of Deposit and Petty Cash $ 29,793,647 $ 28,486,308 $ 32,544,935
Investment in Maryland Local
Government Investment Pool (MLGIP) 61,167,607 61,148,086 62,371,047
$ 90,961,254 $ 89,634,394 $ 94,915,982
Cash and investments reconcile to the basic financial statements as follows:
Primary
Cash and Investments Government Fiduciary Total
Unrestricted
Equity in Pooled Cash and Investments $ 67,231,993 $ 4,230,066 $ 71,462,059
Restricted
Equity in Pooled Cash and Investments 19,499,195 - 19,499,195
$ 86,731,188 $ 4,230,066 $ 90,961,254
At year-end, the carrying amount of combined deposits was $29,793,647. The collected bank balances were
$28,486,308 and of those balances, $752,624 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 with the passage of Article 95 Section 22G, of the Annotated Code of Maryland. PNC
Financial manages the MLGIP, under administrative control of the State Treasurer. A MLGIP Advisory Committee of
current participants reviews the activities of the Fund on a quarterly basis and provides suggestions to enhance the pool.
The MLGIP portfolio is managed in a manner consistent with the Securities and Exchange Commission’s Rule 2a-7 of
the Investment Company Act of 1940. Standard and Poors rates the MLGIP as AAAm. The MLGIP seeks to maintain a
constant value of $1 per unit with unit value 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.
As of June 30, 2016, 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.
-62-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
COMPONENT UNITS (BOARD OF EDUCATION AND LIBRARY)
Component Unit - Board of Education - At year-end, the carrying amount of deposits was $12,555,600, including
$317,000 in certificates of deposit and excluding the carrying amount of fiduciary funds. At June 30, 2016, the Board
had deposits of approximately $13.4 million with local banks. Of the total deposits, approximately $12.9 million not
covered by the FDIC was collateralized by securities held by the pledging financial institution’s trust department or
agent, but not in the Board’s name.
Component Unit – Library - At year-end, the carrying amount of all bank deposits, including a $434,039 certificate of
deposit, was $945,206, while collected bank balances were $974,172. Of the bank balances, $349,513 was secured
by the FDIC and $624,659 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 and business-type funds was credited for use as follows:
Investment
Governmental Funds Income
Major Governmental Funds
General Fund $ 92,664
General Capital Projects 40,184
Roads Capital Projects 15,692
Non-Major Governmental Funds 26,151
Total Investment Income $ 174,691
Business-Type Funds
Major Enterprise Funds
Sanitary District $ 320,219
Bay Bridge Airport 224
Total Investment Income $ 320,443
-63-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 4 - ACCOUNTS RECEIVABLE
Receivables as of June 30, 2016 for the governmental and business-type activities are as follows:
Total
General Roads Non-Major Total Total Governmental
General Capital Capital Governmental Governmental Enterprise and Enterprise
Accounts Receivable Fund Projects Projects Funds Funds Funds Funds
Receivables
Taxes - Real Property $ 427,903 $ - $ - $ - $ 427,903 $ - $ 427,903
Taxes - Other 303,926 - - 65,900 369,826 - 3 69,826
Subtotal Taxes 731,829 - - 65,900 797,729 - 7 97,729
Other Accounts Receivable:
Queen Anne's County Public Housing Authority - 1 ,084,056 - - 1,084,056 - 1 ,084,056
Sanitary District - User and Septage Fees - - - - - 679,313 6 79,313
Board of Education 26,984 - - - 26,984 - 2 6,984
Retirees Insurance 29,678 - - - 29,678 - 2 9,678
Governmental Funds - User Fees 5,916 - 1 4,830 - 20,746 - 2 0,746
Department of Emergency Service Receivables 12,949 - - - 12,949 - 1 2,949
Roads Inspection Fees 140,198 - - - 140,198 - 1 40,198
Public Landings Receivables - - - - - 10,861 1 0,861
Airport - Fuel Sales and User and Rental Fees - - - - - 36,681 3 6,681
Miscellaneous Receivables 33,806 2 26,421 - 27,478 287,705 - 2 87,705
Subtotal Other Accounts Receivable 249,531 1 ,310,477 1 4,830 27,478 1,602,316 726,855 2 ,329,171
Loans Receivable - - - 6,342,579 6,342,579 - 6 ,342,579
Subtotal Other Accounts and Loans Receivable 249,531 1 ,310,477 1 4,830 6,370,057 7,944,895 726,855 8 ,671,750
Special Assessments - - 1 56,595 461,391 617,986 - 6 17,986
Intergovernmental
Income Taxes Held by State 7,752,204 - - - 7,752,204 - 7 ,752,204
Grants Receivable 625,344 3 50,968 - 401,829 1,378,141 179,955 1 ,558,096
Recordation Tax 493,227 - - 149,266 642,493 - 6 42,493
State-Shared Highway User Tax 119,537 - - - 119,537 - 1 19,537
Bonds Receivable 712,105 - - - 712,105 - 7 12,105
Subtotal Intergovernmental 9,702,417 3 50,968 - 551,095 10,604,480 179,955 1 0,784,435
Restricted Receivables
Accounts Receivable - - - - - 546,683 5 46,683
Special Assessments - - - - - 1,381,066 1 ,381,066
Subtotal Restricted Receivables - - - - - 1,927,749 1 ,927,749
Total Receivables $ 10,683,777 $ 1 ,661,445 $ 171,425 $ 7,448,443 $ 19,965,090 $ 2,834,559 $ 2 2,799,649
The County does not have any allowance for doubtful accounts related to the above receivables.
In Fiscal Year 2014, the County issued bonds on behalf of three mid-shore counties (Dorchester, Caroline, and Talbot) in
order to provide funding for the new Center for Allied Health and Athletics at Chesapeake College. Therefore, in addition
to the Governmental and Enterprise Fund receivables listed above, the County also has a $4.5 million receivable on its
government-wide Statement of Net Position, which represents the collective obligation of the three aforementioned counties
for funding the facility at Chesapeake College.
-64-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 4 - ACCOUNTS RECEIVABLE (CONTINUED)
The County expects to receive all receivables listed in the table within one year, excluding the following items.
Intergovernmental receivables include bonds receivable from four other counties. In years 2000 and 2003, Queen Anne’s
County sold $2,815,000 and $710,000, respectively, of its general obligation bonds for the purpose of providing the local
share of capital projects at Chesapeake College. Five counties, including Queen Anne’s County, provide local support for
the College. The other four counties supporting Chesapeake College reimburse Queen Anne’s County for their portion of
the debt service. Bonds are amortized over the 20-year life of each of the original Queen Anne's County Bonds. The
current carrying value for the bonds receivable from the other four counties are $485,634 and $226,471, respectively, for a
total of $712,105. The College bills and collects from the original five counties an amount sufficient to cover this debt
service and reimburses this amount to Queen Anne’s County on a semi-annual basis. In addition to these two receivables
related to Chesapeake College, there is also a receivable of $4.5 million included in the Government-Wide Statement of Net
Position. Details are included on the previous page.
Loans receivable in the amount of $6,342,579 relate to the Housing and Community Services, Impact Fees, and Revolving
Loan Special Revenue Funds. Loans receivable in the amount of $4,910,365 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 $134,514 are also repaid over a number of years.
The remaining loan receivable balance of $1,297,700 relates to school, fire, and parks and recreation impact fees. In July
2007, the County began accepting promissory notes for impact fees, in certain situations, with the understanding that when
certificate of occupancy was obtained, these notes would be paid in full. To ensure repayment, the notes attach to the
property incurring the impact fee; therefore, payment will be required automatically prior to legal transfer of title.
Income taxes held by the State in the amount of $7,752,204 have been estimated by the State as income tax due for “tax
years” 2014 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 $617,986 represent receivables for governmental activities. Part of this amount
consists of $156,595 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 $461,391 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 $1,381,066 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.
-65-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 5 – UNEARNED REVENUE
Governmental funds report unearned revenue in connection with resources that have been received, but unearned. At
the end of the current fiscal year, the components of unearned revenue were reported as follows:
Unearned
Governmental Funds Revenue
General Fund
Property Tax Deferrals $ 21,518
Grant Drawdowns in Excess of Expenditures 1,837
Inspection Fees Collected in Advance 647,355
Subtotal 670,710
General Capital Projects Fund
Grant Drawdowns in excess of Expenditures 53,907
Non-Major Governmental Funds
Grant Drawdowns in Excess of Expenditures 185,219
Total Unearned Revenue $ 909,836
-66-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 6 – CAPITAL ASSETS
PRIMARY GOVERNMENT
Changes in the County’s capital assets for governmental activities for the year ended June 30, 2016 are summarized as
follows, with depreciation shown separately. Assets resulting from completed capital projects are shown in the Transfers
column. Asset retirements are shown in the Decreases column.
Balance Balance
Governmental Activities June 30, 2015 Increases Transfers Decreases June 30, 2016
Capital Assets, not being depreciated:
Land $ 3 9,642,798 $ 7 91,089 $ - $ (1,398,958) $ 39,034,929
Intangible Rights - Easements 8 21,819 - - - 821,819
Land Improvements 3 ,448,083 - - - 3,448,083
Construction in Progress 1 0,986,604 7 ,347,862 ( 910,367) - 17,424,099
Land - Inexhaustible Infrastructure Improvements 44,394,332 - - (564,054) 43,830,278
Total Capital Assets, not being depreciated 9 9,293,636 8 ,138,951 ( 910,367) (1,963,012) 104,559,208
Capital Assets, being depreciated:
Buildings and Building Improvements 4 1,684,071 1 84,709 - - 41,868,780
Improvements other than Buildings 9 ,577,406 1 70,421 454,956 - 10,202,783
Vehicles 1 1,477,502 1 ,275,775 - (774,919) 11,978,358
Equipment 9 ,557,978 1 ,244,635 455,411 (281,252) 10,976,772
Furniture and Fixtures 1 0,482,725 1 92,282 - (982,059) 9,692,948
Infrastructure Improvements - Depreciable 1 8,926,771 - - (141,013) 18,785,758
Total Capital Assets, being depreciated 101,706,453 3 ,067,822 910,367 (2,179,243) 103,505,399
Less Accumulated Depreciation for:
Buildings and Building Improvements 1 2,882,078 9 27,660 - - 13,809,738
Improvements other than Buildings 2 ,138,663 3 28,446 - - 2,467,109
Vehicles 6 ,776,202 8 60,048 - (742,158) 6,894,092
Equipment 6 ,154,688 5 75,051 - (269,423) 6,460,316
Furniture and Fixtures 9 ,285,258 2 43,748 - (860,634) 8,668,372
Infrastructure Improvements - Depreciable 7 ,897,299 3 14,972 - (109,366) 8,102,905
Total Accumulated Depreciation 4 5,134,188 3 ,249,925 - (1,981,581) 46,402,532
Total Capital Assets, being depreciated, net 5 6,572,265 (182,103) 910,367 (197,662) 57,102,867
Governmental activities Capital Assets, net $ 1 55,865,901 $ 7,956,848 $ - $ (2,160,674) $ 161,662,075
-67-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
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, 2016 are summarized as
follows, with depreciation shown separately. Assets resulting from completed capital projects are shown in the Transfers
column. Asset retirements are shown in the Decreases column.
Balance Balance
Business-Type Activities June 30, 2015 Increases Transfers Decreases June 30, 2016
Capital Assets, not being depreciated:
Land $ 12,929,533 $ - $ - $ - $ 12,929,533
Land Improvements 9,500 - - - 9,500
Intangible Rights 6,140 - - - 6,140
Construction in Progress 850,582 1,062,443 - - 1,913,025
Land - Inexhaustible Infrastructure Improvements 2,481,094 - - - 2,481,094
Total Capital Assets, not being depreciated 16,276,849 1,062,443 - - 17,339,292
Capital Assets, being depreciated:
Buildings and Improvements to Buildings 14,703,860 - - - 14,703,860
Improvements other than Buildings 14,824,467 - - - 14,824,467
Vehicles 1,431,720 17,259 - (49,047) 1,399,932
Equipment 22,507,042 275,886 - - 22,782,928
Furniture and Fixtures 47,439 2,458 - - 49,897
Infrastructure Improvements - Depreciable 77,866,782 1,958,050 - - 79,824,832
Total Capital Assets, being depreciated 131,381,310 2,253,653 - (49,047) 133,585,916
Less Accumulated Depreciation for:
Buildings and Improvements to Buildings 7,902,803 612,442 - - 8,515,245
Improvements other than Buildings 4,112,821 517,601 - - 4,630,422
Vehicles 1,074,244 70,188 - (49,047) 1,095,385
Equipment 11,069,512 1,066,688 - - 12,136,200
Furniture and Fixtures 28,375 3,156 - - 31,531
Infrastructure Improvements - Depreciable 27,826,528 1,832,297 - - 29,658,825
Total Accumulated Depreciation 52,014,283 4,102,372 - (49,047) 56,067,608
Total Capital Assets, being depreciated, net 79,367,027 (1,848,719) - - 77,518,308
Business-Type activities Capital Assets, net $ 95,643,876 $ (786,276) $ - $ - $ 94,857,600
-68-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
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 $ 255,961
Public Safety 910,835
Public Works 1,616,922
Health 21,121
Social Services 349,620
Library 25,848
Conservation of Natural Resources 31,488
Economic/Community Development 38,130
$ 3,249,925
Business-Type Activities
Major Enterprise Funds:
Sanitary District $ 3,563,821
Bay Bridge Airport 393,080
Non-Major Enterprise Funds 145,471
$ 4,102,372
-69-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS
Board of Education: Capital asset activity for the year ended June 30, 2016 is as follows:
Balance Balance
Board of Education June 30, 2015 Increases Decreases June 30, 2016
Capital Assets, not being depreciated:
Land $ 6,363,040 $ - $ - $ 6,363,040
Construction in Progress 20,720,345 2,932,070 - 23,652,415
Total Capital Assets, not being depreciated 27,083,385 2,932,070 - 30,015,455
Capital Assets, being depreciated:
Land Improvements 5,368,196 5,395 (3,900) 5,369,691
Buildings 184,267,991 - (73,732) 184,194,259
Furniture and Equipment 14,695,699 853,681 (273,560) 15,275,820
Total Capital Assets, being depreciated 204,331,886 859,076 (351,192) 204,839,770
Less Accumulated Depreciation for:
Land Improvements 3,979,941 176,227 (3,900) 4,152,268
Building 47,976,534 3,767,939 (42,391) 51,702,082
Furniture and Equipment 7,143,087 1,200,421 (229,085) 8,114,423
Total Accumulated Depreciation 59,099,562 5,144,587 (275,376) 63,968,773
Total Capital Assets, being depreciated, net 145,232,324 ( 4,285,511) (75,816) 140,870,997
Capital Assets, net $ 172,315,709 $ ( 1,353,441) $ (75,816) $ 170,886,452
-70-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS (CONTINUED)
Queen Anne’s County Free Library: Capital asset activity for the year ended June 30, 2016 is as follows:
Balance Balance
Library June 30, 2015 Increases Decreases June 30, 2016
Capital Assets, not being depreciated:
Artwork $ 29,850 $ - $ - $ 29,850
Capital Assets, being depreciated:
Books and Media 2,180,086 159,860 (305,915) 2,034,031
Building Improvements 3 11,523 1 3,057 - 324,580
Equipment 22,870 - - 22,870
Total Capital Assets, being depreciated 2,514,479 172,917 (305,915) 2,381,481
Less Accumulated Depreciation 1,420,715 131,357 (275,323) 1,276,749
Total Capital Assets, being depreciated, net 1,093,764 4 1,560 ( 30,592) 1,104,732
Capital Assets, net $ 1,123,614 $ 41,560 $ (30,592) $ 1 ,134,582
-71-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 7 - INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables are usually used by the County to cover temporary cash deficits in individual funds
until grant or similar resources are received. Occasionally, these receivables and payables are used in lieu of short-term
external borrowing, such as for capital lease agreements.
The interfund and intra-entity receivables and payables consist of the following at June 30, 2016:
Due from Fund
Non-Major Sanitary Bay Bridge Non-Major
Governmental District Airport Enterprise Total Due
Due to Fund
General Fund $ 278,108 $ - $ - $ 432,806 $ 710,914
General Capital Projects 49,874 - 1 ,308,296 - 1,358,170
Sanitary District - 174,985 - - 174,985
Total Due to Other Funds $ 327,982 $ 174,985 $ 1 ,308,296 $ 432,806 $ 2,244,069
Note that there is a $329 reconciling item between the Board of Education and the County as of June 30, 2016 due to a
timing difference for an expense incurred by the Board of Education.
Interfund receivables and payables are reported on the Statement of Net Position as Internal Balances, net of transactions
between the same types of funds.
-72-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
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,
2016:
Transfers in Fund
Total General General Roads Non-Major Major Non-Major Total
Transfers Out Fund Capital Projects Capital Governmental Enterprise Enterprise Transfers In
Transfers Out Fund
General Fund $ 5,619,520 $ - $ 3,361,482 $ - $ 2,107,437 $ 25,000 $ 125,601 $ 5,619,520
General Capital Projects (1) 3,131,080 - - 2 ,968,945 - 33,905 26,616 3,029,466
Roads Capital Projects 225,000 - - - 225,000 - - 225,000
Total Major Governmental Funds 8,975,600 - 3,361,482 2 ,968,945 2,332,437 58,905 152,217 8,873,986
Non-Major Governmental 1,268,187 1,268,187 - - - - - 1,268,187
Sanitary District - Sewer 5,000 - 5,000 - - - - 5,000
Sanitary District - Water 5,000 - 5,000 - - - - 5,000
Sanitary District - Restricted 1,052,371 - - - - 1,052,371 - 1,052,371
Sanitary District - Debt Service 2,426,348 - - - - 2,426,348 - 2,426,348
Total Major Enterprise Funds 3,488,719 - 10,000 - - 3,478,719 - 3,488,719
Total Transfers Out $ 13,732,506 $ 1,268,187 $ 3,371,482 $ 2 ,968,945 $ 2,332,437 $ 3,537,624 $ 152,217 $ 13,630,892
(1) In fiscal year 2016, the General Capital Projects Fund transferred 2015 bond proceeds in the amounts of $101,614 to
the Bay Bridge Airport Fund. The transaction was appropriately recorded on the Enterprise Fund books as an increase in
debt liability and on the General Capital Projects Fund’s books as a transfer out. Since enterprise funds and
governmental funds record such transactions differently, the $101,614 is reported in the above table only as a transfer out
with no corresponding transfer in.
-73-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 9 - NONCURRENT LIABILITIES
A. CHANGES IN NONCURRENT LIABILITIES
During the year ended June 30, 2016, 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, 2015 of debt Repayments June 30, 2016 One Year One Year
General Bonds Payable $ 102,262,737 $ 21,977,137 $ 15,990,993 $ 108,248,881 $ 7,864,499 $ 100,384,382
General Bonds Payable - Related to PHA 1,158,825 - 74,769 1,084,056 75,139 1,008,917
General Bonds Payable - Related to Ches College 4,631,710 - 167,217 4,464,493 173,649 4,290,844
Notes Payable 784,785 1 ,550,275 421,861 1,913,199 390,700 1,522,499
Bond Premiums 4,006,781 1 ,650,448 476,750 5,180,479 525,682 4,654,797
Subtotal Governmental Activities Debt 112,844,838 2 5,177,860 17,131,590 120,891,108 9,029,669 111,861,439
Other Post-Employment Benefit Obligation 33,920,346 3 ,712,904 2,121,316 35,511,934 - 35,511,934
Net Pension Liability 16,857,736 5 ,733,776 - 22,591,512 - 22,591,512
Compensated Absences 2,297,920 1 ,490,740 1,343,904 2,444,756 1,478,910 965,846
Total Governmental Activities Debt $ 165,920,840 $ 36,115,280 20,596,810 $ 181,439,310 $ 10,508,579 $ 170,930,731
Less College Reimbursements ( 197,588)
Total Governmental Retirements and Repayments $ 20,399,222
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 $ 15,990,993
Notes Payable 421,861
LESS: Payment to Bond Refunding Agent ( 8,446,336)
LESS: Distributions of 2015 Bonds ( 101,614)
LESS: College Reimbursements ( 197,588)
Total Principal Payments $ 7,667,316
The County added amounts to several bond offerings on behalf of Chesapeake College, which cannot borrow money on
its own. The College reimbursed the County $197,588 for this year’s principal and interest payments.
-74-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2016, 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, 2015 of debt Repayments June 30, 2016 One Year One Year
Golf Course $ 441,075 $ 4 24,698 $ 441,075 $ 424,698 $ 127,298 $ 297,400
Bay Bridge Airport 2,028,016 1 89,779 175,513 2,042,282 125,889 1,916,393
Public Landings and Marinas 927,637 - 47,047 880,590 48,525 832,065
Sanitary District 11,388,918 - 917,279 10,471,639 906,592 9,565,047
Subtotal Debt 14,785,646 6 14,477 1,580,914 13,819,209 1,208,304 12,610,905
Bond Premiums
Golf Course 15,205 3 3,868 8,292 40,781 8,655 32,126
Bay Bridge Airport 121,444 1 3,516 8,870 126,090 9,189 116,901
Public Landings and Marinas 6,918 - 500 6,418 500 5,918
Subtotal Bond Premiums 143,567 4 7,384 17,662 173,289 18,344 154,945
Subtotal Business-Type Activities Debt 14,929,213 6 61,861 1,598,576 13,992,498 1,226,648 12,765,850
Other Post-Employment Benefit Obligation 5,951,774 4 76,660 - 6,428,434 - 6,428,434
Net Pension Liability 1,573,426 5 56,310 - 2,129,736 - 2,129,736
Compensated Absences 310,118 2 05,854 181,368 334,604 202,413 132,191
Total Business-Type Activities Debt $ 22,764,531 $ 1,900,685 $ 1,779,944 $ 22,885,272 $ 1,429,061 $ 21,456,211
Additions of debt listed for the Airport include $101,614 in distributions of the 2015 bonds (see comment in Note 8),
along with distributions from the 2016 refunding bonds.
-75-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2016, the following changes occurred in the noncurrent liabilities of the primary
government’s Component Units:
COMPONENT UNITS Retirements Due in
Balance Additions and Balance Due Within More than
Board of Education and Free Library June 30, 2015 of new debt Repayments June 30, 2016 One Year One Year
Queen Anne's County
Board of Education
Retirement Incentives $ 8,905 $ - $ 3 ,128 $ 5,777 $ 3 ,128 $ 2,649
Compensated Absences 1,095,985 - 9 7,187 9 98,798 3 70,230 628,568
Capital Leases 3,085,047 - 3 22,301 2,762,746 3 33,846 2,428,900
Other Post-Employment Benefit Obligation 40,085,868 8,032,000 1 ,753,599 46,364,269 - 46,364,269
Net Pension Liability 3,569,488 977,380 - 4,546,868 - 4,546,868
Subtotal 47,845,293 9,009,380 2 ,176,215 54,678,458 7 07,204 53,971,254
Free Library
Other Post-Employment Benefit Obligation 1,259,558 11,219 - 1,270,777 - 1,270,777
Total Noncurrent Liabilites: Component Units $ 49,104,851 $ 9,020,599 $ 2 ,176,215 $ 5 5,949,235 $ 7 07,204 $ 55,242,031
-76-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
NET PENSION LIABILITY, AND COMPENSATED ABSENCES
PRIMARY GOVERNMENT
All general obligation bonds are valid and legally binding general obligations of Queen Anne’s County and constitutes an
irrevocable pledge of its full faith and credit and unlimited taxing power. Governmental bonds are payable from ad
valorem taxes, unlimited as to rate or amount on all real, tangible, personal, and certain intangible property subject to
taxation at full rate for local purposes in the County.
Business-type bonds, while representing general obligations of the County government, are to be paid from income
earned by the related enterprise fund. Enterprise funds that have such debt are: Sewer Operations, Bay Bridge Airport,
Blue Heron Golf Course, and Public Landings and Marinas.
During fiscal year 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. Other Post-
Employment Benefit Obligation costs in governmental funds are charged to the General Fund. Additional information
can be found in Note 14, Other Post-Employment Benefits.
During fiscal year 2015, the County implemented the provisions of Governmental Accounting Standards Board (GASB)
Statement 68, Accounting and Financial Reporting for Pensions. For governmental funds, the net pension liability is
reported in the government-wide statements in the function in which that employee usually charges their productive time.
For enterprise funds, these obligations are reported in the enterprise fund in which the employee charges the majority of
their productive time. Net Pension Liability costs in governmental funds are charged to the Governmental Fund in which
the employee charges their time. Additional information can be found in Note 12, Retirement Plans.
Compensated absences that mature during the fiscal year, in that they are paid when the employee takes vacation leave or
upon the employee’s termination, are typically liquidated from the governmental or enterprise fund in which that
employee charges the majority of their productive time. They are paid as regular wages. Compensated absences that do
not mature during the fiscal year are accrued at year-end as an adjustment to liability for compensated absences. For
governmental funds, these adjustments are reported in the government-wide statements in the function in which that
employee usually charges their productive time. For enterprise funds, these adjustments are reported in the enterprise
fund in which that employee charges the majority of their productive time. In the case of grant-funded activities that
disallow compensated absences as an eligible cost, they are paid as administrative wages in the same Fund. Compensated
absences in governmental funds are primarily charged to the General Fund or Special Revenue Funds; they are usually
not charged to Capital Projects Funds.
-77-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
NET PENSION LIABILITY, AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
As of June 30, 2016, general obligation bonds and notes payable for governmental activities are comprised of the
following, along with other post-employment benefits, net pension liability, and accrued compensated absences:
Year Amount Outstanding Due in
Paying Interest Series of Original June 30, Due Within More than
Governmental Activities Fund Rate Matures Issue 2016 One Year One Year
General Obligation Bonds Payable
2006 Public Facilities General 4.000%-5.375% 2027 $ 22,510,212 $ 1,079,987 $ 1,079,987 $ -
2009 Public Facilities General 1.400%-5.625% 2030 28,499,154 21,585,717 1,193,766 20,391,951
2011 Public Facilities General 2.00%-4.25% 2031 21,532,570 17,599,895 863,585 16,736,310
2012 Refunding Bonds General 2.00%-4.00% 2023 8,010,000 5,678,264 726,403 4,951,861
2014 Public Facilities General 2.00%-4.00% 2034 17,590,000 15,430,404 600,174 14,830,230
2015 Public Facilities General 3.00%-5.00% 2036 11,622,756 11,521,142 380,984 11,140,158
2015 Refunding Bonds General 2.00%-5.00% 2027 13,521,625 13,376,335 - 13,376,335
2016 Public Facilities General 2.00%-4.00% 2036 13,934,364 13,934,364 - 13,934,364
2016 Refunding Bonds General 2.00%-5.00% 2019 8,042,773 8,042,773 3,019,600 5,023,173
2006 Public Facilities Due from PHA 4.000%-5.375% 2027 399,728 19,178 19,178 -
2009 Public Facilities Due from PHA 1.400%-5.625% 2030 872,644 675,610 37,364 638,246
2012 Refunding Bonds (2003 Bonds) Due from PHA 3.50%-4.50% 2023 335,000 151,736 18,597 133,139
2015 Refunding Facilities (2006 Bonds) Due from PHA 2.00%-3.00% 2027 240,112 237,532 - 237,532
2014 Public Facilities Due from other Counties 2.00%-4.00% 2034 4,800,000 4,464,493 173,649 4,290,844
Subtotal Bonds Payable 113,797,430 8,113,287 105,684,143
Notes Payable
State of Maryland - Price Ck. Spec. Rev. 0.00% 2021 625,000 120,000 24,000 96,000
State of Maryland - Grove Ck. Spec. Rev. 0.00% 2034 510,617 367,642 20,425 347,217
State of Maryland - Narrows Pointe Spec. Rev. 0.00% 2030 15,542 525,318 - 525,318
Suntrust Financing General 2.01% 2016 564,068 115,059 115,059 -
Suntrust Financing General 2.51% 2020 1,215,590 785,180 231,216 553,964
Subtotal Notes Payable 1 ,913,199 3 90,700 1 ,522,499
Subtotal Bonds and Notes Payable 115,710,629 8,503,987 107,206,642
Bond Premiums 5,180,479 525,682 4,654,797
Subtotal Governmental Activities Debt 120,891,108 9,029,669 111,861,439
Other Post-Employment Benefit Obligation 35,511,934 - 35,511,934
Net Pension Liability 22,591,512 - 22,591,512
Compensated Absences 2,444,756 1,478,910 965,846
Total Governmental Activities $ 181,439,310 $ 10,508,579 $ 170,930,731
-78-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
NET PENSION LIABILITY, AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize general obligation bonds and notes payable outstanding as of
June 30, 2016 for governmental activities are as follows:
Governmental Activities
Year Ending Governmental Bonds Payable Governmental Notes Payable
June 30, Principal Interest Total Principal Interest Total
2017 $ 8,113,287 $ 4 ,337,640 $ 12,450,927 $ 390,700 $ 2 6,439 $ 417,139
2018 7,331,838 4 ,148,272 11,480,110 806,762 1 8,299 825,061
2019 7,631,976 3 ,866,633 11,498,609 287,394 1 2,350 299,744
2020 7,900,179 3 ,555,498 11,455,677 118,401 6 ,252 124,653
2021 6,445,519 3 ,254,900 9,700,419 44,425 - 44,425
2022-2026 33,591,699 1 2,022,706 45,614,405 102,125 - 102,125
2027-2031 29,336,766 5 ,408,386 34,745,152 102,125 - 102,125
2032-2036 12,487,060 1 ,188,197 13,675,257 61,267 - 61,267
2037 959,106 1 5,587 974,693 - - -
$ 113,797,430 $ 3 7,797,819 $ 151,595,249 $ 1,913,199 $ 6 3,340 $ 1,976,539
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 $376,302 during fiscal year 2016, 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 $ 1,111,301 $ ( 361,490) $ 7 49,811
Business-Type Activities
Bay Bridge Airport 7,174 ( 2,340) 4 ,834
Public Landings and Marinas 38,191 ( 12,472) 2 5,719
Total Business-Type Activities 45,365 ( 14,812) 3 0,553
Total $ 1,156,666 $ ( 376,302) $ 7 80,364
-79-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
NET PENSION LIABILITY, AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
General obligation bonds and notes payable outstanding as of June 30, 2016 for business-type activities are comprised of
the following, as well as other post-employment benefits, net pension liability, and accrued compensated absences:
Year Amount Outstanding Due in
Interest Series of Original June 30, Due Within More than
Business -Type Activities Rate Matures Issue 2016 One Year One Year
Golf Course
2016 Public Facilities Bonds 2.00%-4.00% 2036 $ 85,636 $ 85,636 $ - $ 85,636
2016 Refunding Bonds 2.00%-5.00% 2019 339,062 339,062 1 27,298 211,764
Bond Premiums 40,781 8 ,655 32,126
Subtotal Golf Course 465,479 1 35,953 329,526
Bay Bridge Airport
2006 Public Facilities Bonds 4.000%-5.375% 2027 288,928 13,862 1 3,862 -
2009 Public Facilities Bonds 1.400%-5.625% 2030 180,501 139,745 7 ,728 132,017
2011 Public Facilities Bonds 2.00%-4.25% 2031 21,968 19,858 1 ,005 18,853
2014 Public Facilities Bonds 2.00%-4.00% 2034 964,940 930,103 3 6,177 893,926
2015 Public Facilities Bonds 3.00%-5.00% 2036 577,244 678,858 3 4,016 644,842
2015 Refunding Bonds 2.00%-5.00% 2027 173,556 171,691 - 171,691
2016 Refunding Bonds 2.00%-4.00% 2036 88,165 88,165 3 3,101 55,064
Bond Premiums 126,090 9 ,189 116,901
Subtotal Airport 2,168,372 1 35,078 2,033,294
Public Landings and Marinas
2006 Public Facilities Bonds 4.000%-5.375% 2027 41,132 1,973 1 ,973 -
2009 Public Facilities Bonds 1.400%-5.625% 2030 947,976 743,928 4 1,142 702,786
2011 Public Facilities Bonds 2.00%-4.25% 2031 133,908 110,247 5 ,410 104,837
2015 Refunding Bonds 2.00%-5.00% 2027 24,707 24,442 - 24,442
Bond Premiums 6,418 5 00 5,918
Subtotal Public Landings and Marinas 887,008 4 9,025 837,983
Sanitary District
Maryland Water Quality-2005 Enhancement 1.00% 2027 18,252,291 10,471,639 9 06,592 9,565,047
Total Business-Type Activities Debt 13,992,498 1 ,226,648 12,765,850
Other Post-Employment Benefit Obligation 6,428,434 - 6,428,434
Net Pension Liability 2,129,736 - 2,129,736
Compensated Absences 334,604 2 02,413 132,191
Total Business-Type Activities $ 22,885,272 $ 1,429,061 $ 21,456,211
-80-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION,
NET PENSION LIABILITY, AND COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize business-type bonds and notes outstanding at June 30, 2016, are as follows:
Business-Type Activities
Year Ending Business-Type Bonds Payable Business-Type Notes Payable
June 30, Principal Interest Total Principal Interest Total
2017 $ 301,712 $ 1 32,651 $ 434,363 $ 906,592 $ 153,117 $ 1,059,709
2018 223,160 1 24,274 347,434 915,658 1 44,051 1,059,709
2019 233,024 1 14,813 347,837 924,815 1 34,895 1,059,710
2020 239,821 1 05,236 345,057 934,063 1 25,647 1,059,710
2021 154,481 9 6,436 250,917 943,404 1 16,307 1,059,711
2022-2026 873,302 3 69,719 1,243,021 4,860,431 4 38,121 5,298,552
2027-2031 873,234 1 75,691 1,048,925 986,676 5 8,267 1,044,943
2032-2036 442,942 3 8,651 481,593 - - -
2037 5,894 9 5 5,989 - - -
$ 3,347,570 $ 1 ,157,566 $ 4,505,136 $ 10,471,639 $ 1 ,170,405 $ 11,642,044
C. ISSUANCE OF NEW DEBT
PRIMARY GOVERNMENT
On March 1, 2016, Queen Anne's County issued Public Facilities Bonds of 2016 for $14,020,000. These General
Obligation Bonds carry interest rates of 2.0 to 4.0 percent and mature serially through 2036. The primary use of the
bond proceeds is to provide funding for the Department of Emergency Services radio system upgrade, the new County
courthouse, and the renovation of Stevensville Middle School, with minor amounts earmarked for construction of general
government and enterprise capital projects. Moody’s Investor Service has assigned the rating of Aa2 and Fitch Ratings
has assigned a rating of AA+ to the Queen Anne’s County 2016 Bonds.
Queen Anne's County also issued Public Facilities Refunding Bonds of 2016 for $8,470,000 on March 1, 2016. These
bonds carry interest rates of 2.0 to 5.0 percent and mature serially through 2019. The net proceeds of $9,125,938 (after
receipt of $593,017, a re-offering premium net of underwriting fees, insurance, and other issuance costs) were used to
refund $8,895,000 of the Public Facilities Refunding Bonds of 2005. The savings or aggregate difference in debt service
from refunding the 2005 refunding bonds was $663,499. The economic gain or net present value of savings from the
refunding was $665,430.
Between November 2015 and May 2016, the County received a total of $509,776 in loan proceeds from the State of
Maryland Department of Natural Resources for the remainder of the Narrows Pointe Shore Erosion Loan. The County
also received $15,542 for this loan in May 2014. The total loan amount is $525,318 which will be repaid, without
interest, in fifteen annual installments beginning July 2017.
In January 2016, the County signed a note with SunTrust Equipment Financing & Leasing Corporation for the purchase
of replacement vehicles for various County departments. The total amount of the note was $1,215,590 and is payable
over five years. This note is secured by the vehicles purchased. The first payment was made in February 2016. The
annual interest rate is 2.51%. As of June 30, 2016, there is approximately $175,000 remaining to be drawn down on the
SunTrust loan. The outstanding balance of the loan as of June 30, 2016 is $785,180.
-81-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
D. MUNICIPAL LEASE
PRIMARY GOVERNMENT
In August 2012, the County signed a note with SunTrust Equipment Financing & Leasing Corporation for the purchase of
five replacement vehicles for the Sheriff’s Office and two ambulances for Emergency Services. The total amount of the
note was $564,068 and is payable over five years. This note is secured by the vehicles purchased. The first payment was
made in August 2012. The annual interest rate is 2.0118%. The outstanding balance as of June 30, 2016 is $115,059.
E. LEASE OBLIGATIONS
OPERATING LEASE – PRIMARY GOVERNMENT
In October 2009, Queen Anne’s County entered into an operating lease agreement as lessor for ground space at the
Bay Bridge Airport. The Airport leased a parcel of land approximately 9,000 square feet to CSP Properties, LLC
beginning in November 2009 for a term of twenty-five years, ending in fiscal year 2035. Included in the lease
agreement is the requirement that the lessee, CSP Properties, LLC, construct an aircraft hangar at its sole expense,
subject to certain criteria. At the end of the lease, the aircraft hangar and any improvements made to it become the
sole property of the Bay Bridge Airport.
Lease revenues for the year ended June 30, 2016 amounted to $5,310. Minimum future lease revenues are as follows:
Fiscal Year Ending lease
June 30, payments
2017 $ 5,525
2018 5,525
2019 5,598
2020 5,635
2021 5,635
2022-2026 28,893
2027-2031 29,824
2032-2035 20,453
Minimum Future Rental Revenue $ 107,088
-82-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
F. LOCAL DEBT POLICY
PRIMARY GOVERNMENT
In May 2013, Queen Anne’s County adopted Resolution No. 13-04, which updated and replaced Resolution No. 09-13,
to continue a local debt policy in compliance with Article 95, Section 22F of the Annotated Code of Maryland. This
policy requires that the County’s Director of Budget, Finance, and Information Technology: (1) prepare a six-year capital
project plan each year; (2) propose an amount to be transferred from the General Fund operating balances to the General
Capital Projects Fund to serve as pay-as-you-go funding in the latter Fund, in order to lessen the need for future County
debt; (3) limit the County’s non-bonded indebtedness to $8.0 million for general operating expenses or capital
improvements; (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, 2015. This policy also stipulates that although there is some flexibility as to the
acceptable percentage of debt service to general fund expenditures, and no absolute limit has been established by the
rating agencies or the Government Finance Officers Association, anything above 12% of total general fund expenditures
would be a cause to carefully monitor debt service.
Queen Anne’s County has complied with the above policy, and has not had any violations. For calculations relating to
this local debt policy, see Table 12-b in the Statistical Section of this document.
-83-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 10 – RESTRICTED ASSETS AND LIABILITIES AND FUND BALANCES
A. RESTRICTED ASSETS AND RELATED LIABILITIES
PRIMARY GOVERNMENT
BUSINESS-TYPE ACTIVITIES
Queen Anne’s County Sanitary District
Restricted Fund - The County Commissioners created a restricted fund within the Sanitary District Enterprise Fund in
November of 1989 by enabling legislation. Revenue sources to the fund are sales of water and sewer allocations and
interest earned on investments. Authorized uses of restricted funds are major capital expenses for repairs, construction,
plant expansion, debt service, or other similar uses within the Sanitary District. To date, such funds have been used
almost exclusively for debt service.
Debt Service Fund - Principal and interest payments for water and wastewater debt used to expand the service area are
payable primarily from water and sewer special benefit assessments. These assessments, made at the time the expansion
is ready for use, are created by enabling legislation and amortized over the same life as underlying debt. They constitute
a lien on the served property and may be prepaid at any time. The amount of assessments collectable in future years is
recorded as benefit assessments receivable. A portion of those assessments receivable is not due currently and is
recorded as unearned revenue.
Water Quality Revolving Loan Fund debt covenants stipulate that sufficient financial resources must be available in the
Debt Service Fund as of June 30 of each year to cover the subsequent year’s debt service payments. If such resources are
not available at that time, the covenants require that the County increase service rates, impose benefit assessments, or
otherwise increase financial resources so that debt service payments are covered before they are due throughout the year.
The assets and related liabilities restricted for the above purposes at June 30, 2016 are as follows:
Sanitary District
Business -Type Activities Restricted Debt Service Total
Current Restricted Assets
Equity in Pooled Cash $ 6,794,963 $ 1,120,775 $ 7 ,915,738
Accounts Receivable (Net) 546,072 611 5 46,683
Subtotal Current Restricted Assets 7,341,035 1,121,386 8 ,462,421
Noncurrent Restricted Assets
Special Assessments Receivable (Net) 1,380,057 1,009 1 ,381,066
LESS Deferred Inflows - Unavailable Water and Sewer Assessments ( 1,380,057) (796) (1,380,853)
Net Noncurrent Restricted Assets - 213 2 13
Net Restricted Assets $ 7,341,035 $ 1,121,599 $ 8 ,462,634
-84-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 10 – RESTRICTED ASSETS AND LIABILITIES AND FUND BALANCES (CONTINUED)
B. RESTRICTED NET POSITION
PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES
Net Investment in Capital Assets for governmental activities, is calculated as follows:
Governmental Activities
Total Debt excluding Compensated Absences, Pension and OPEB Obligations $ (119,309,060)
(includes $1,582,048 for deferred charge on refunding)
Add back: Debt relating to Board of Education Assets $ 62,895,210
Add back: Unspent portion of Bond Proceeds for Board of Education debt 376,094
Add back: Unspent portion of Bond Proceeds for Governmental debt 8 ,879,088
Add back: Debt relating to Chesapeake College 6 ,865,896
Add back: Debt relating to PHA 1 ,084,056
Add back: Debt relating to non-capital assets (Dredging) 1 ,012,960
Add back debt unrelated to Capital Assets 81,113,304
Net Assets Invested in Capital Assets 161,662,075
Net Investment in Capital Assets $ 123,466,319
BUSINESS-TYPE ACTIVITIES
Net Investment in Capital Assets, Restricted Amounts, Unrestricted Amounts, and Net Position for business-type
activities, are as follows:
Sanitary District Non-Major Total
Sewer Water Restricted Debt Service Total Bay Bridge Enterprise Enterprise
Business-Type Activities Operating Operating Fund Fund Sanitary Airport Funds Funds
Capital Assets, net of Accumulated Depreciation $ 52,127,864 $ 1 7,050,697 $ - $ - $ 69,178,561 $ 18,130,912 $ 7 ,548,127 $ 94,857,600
Less: Debt excluding Compensated Absences,
OPEB, and Net Pension Liability ( 10,471,639) - - - ( 10,471,639) ( 2,168,372) (1,352,487) (13,992,498)
Plus: Deferred Charge on Refunding - - - - - 18,743 2 5,170 43,913
Net Investment in Capital Assets 41,656,225 1 7,050,697 - - 58,706,922 15,981,283 6 ,220,810 80,909,015
Restricted Amounts
Debt Service - - - 946,614 946,614 - - 946,614
Capital Projects - - 753,300 - 753,300 - - 753,300
Total Restricted Amounts - - 753,300 946,614 1,699,914 - - 1,699,914
Total Unrestricted Amounts 1,775,183 2 ,450,794 6,587,735 - 10,813,712 ( 510,656) (62,895) 10,240,161
Total Net Position $ 43,431,408 $ 1 9,501,491 $ 7,341,035 $ 946,614 $ 71,220,548 $ 15,470,627 $ 6 ,157,915 $ 92,849,090
-85-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 10 – RESTRICTED ASSETS AND LIABILITIES AND FUND BALANCES (CONTINUED)
C. FUND BALANCES
PRIMARY GOVERNMENT
Governmental fund balances are composed of the following:
Total
General General Roads Non-Major Governmental
Governmental Funds Fund Capital Capital Governmental Funds
Nonspendable
Inventory $ 580,083 $ - $ - $ - $ 5 80,083
Prepaid Items 6 ,398 - - 7,491 1 3,889
Loans Receivable - 1 ,084,055 - 5,054,526 6 ,138,581
Subtotal Nonspendable 5 86,481 1 ,084,055 - 5,062,017 6 ,732,553
Restricted
Rainy Day Fund 8 ,882,114 - - - 8 ,882,114
Unspent Bond Proceeds - 9 ,255,182 - - 9 ,255,182
Impact Fees - 2 47,546 - 6,248,287 6 ,495,833
Economic and Community Development - - - 4,463,015 4 ,463,015
Agricultural Easements - - - 583,951 5 83,951
Inmate Welfare - - - 230,199 2 30,199
Sheriff's Drug Task Force - - - 68,238 6 8,238
Critical Areas - - - 174,459 1 74,459
Mosquito Control 1 16,906 - - - 1 16,906
Sheriff - Federal Confiscated Funds 3 ,369 - - - 3 ,369
Vehicle Acquisition - 2 6,468 - - 2 6,468
Dredging - - - 18,636 1 8,636
Donor-Specified Purposes - - - 107 1 07
Subtotal Restricted 9 ,002,389 9 ,529,196 - 11,786,892 3 0,318,477
Committed
Developer Exactions - 7 9,633 610,562 - 6 90,195
Rubble Surcharge - 7 61,754 - - 7 61,754
Special Fund 3 ,000,000 - - - 3 ,000,000
Courthouse Project - 1 ,973,752 - - 1 ,973,752
Subtotal Committed 3 ,000,000 2 ,815,139 610,562 - 6 ,425,701
Assigned
Encumbrances - 8 ,015,362 1,890,965 - 9 ,906,327
Income Tax Contingency 8 25,000 - - - 8 25,000
Capital Projects - 2 ,247,201 339,828 - 2 ,587,029
Subsequent Years' Expenditures 1 ,101,782 4 ,512,942 610,015 412,760 6 ,637,499
Subtotal Assigned 1 ,926,782 1 4,775,505 2,840,808 412,760 1 9,955,855
Unassigned
General Fund 8 ,468,591 - - - 8 ,468,591
Fire Company Impact Fees - - - (49,874) (49,874)
Housing and Community Services - - - (65,255) (65,255)
Subtotal Unassigned 8 ,468,591 - - (115,129) 8 ,353,462
Total Governmental Funds Balances $ 2 2,984,243 $ 2 8,203,895 $ 3,451,370 $ 17,146,540 $ 7 1,786,048
Encumbrances included in the General Capital and Roads Capital funds are for the following purposes:
General Roads
Capital Capital
General Government $ 2 ,810,819 $ -
Parks & Recreation 2 ,090,910 -
Economic Development 1 ,374,303 -
Public Safety 5 31,674 -
Public Works 4 81,471 -
Conservation of Natural Resources 4 61,780 -
Education 2 64,405 -
Resurfacing Contracts and Materials - 1,703,965
Roads Equipment Shed - 174,000
Roads Construction Equipment - 13,000
Total Encumbrances $ 8 ,015,362 $ 1,890,965
-86-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
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 2016 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 - During fiscal years 2016 and 2015, settlements did not exceed insurance coverage for any type of policy
in effect. In fiscal year 2014, the County paid out $259,305 in front and back wages as a result of a settlement
involving a former employee.
-87-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 12 - RETIREMENT PLANS
Virtually all full and eligible part-time employees of Queen Anne’s County, Maryland, and its related agencies are
covered by one of the statewide contributory pension systems of the State of Maryland.
Maryland State Retirement and Pension Systems
Organization
The State Retirement Agency is the administrator of the Maryland State Retirement and Pension System (the System).
The System was established by the State Personnel and Pensions Article of the Annotated Code of Maryland to provide
retirement allowances and other benefits to State employees, teachers, police, judges, legislators, and employees of
participating governmental units. Responsibility for the System’s administration and operation is vested in a 15 member
Board of Trustees. The System is made up of two cost-sharing employer pools: the “State Pool” and the “Municipal
Pool”. The State Pool consists of State agencies, boards of education, community colleges, and libraries. The Municipal
Pool consists of participating governmental units that elected to join the System. Neither pool shares in each other’s
actuarial liabilities, thus participating governmental units that elect to join the System (the “Municipal Pool”) share in the
liabilities of the Municipal Pool only. The State Retirement Agency issues a publicly available financial report that
includes financial statements and required supplementary information for the System. That report may be obtained by
writing to the State Retirement and Pension System of Maryland, 120 E. Baltimore Street, Suite 1660, Baltimore,
Maryland 21202-1600 or on-line at www.sra.maryland.gov.
The System is comprised of the Teachers’ Retirement and Pension Systems, Employees’ Retirement and Pension
Systems, State Police Retirement System, Judges’ Retirement System, and the Law Enforcement Officers’ Pension
System (LEOPS).
The following groups of employees participate in:
Employees Plan
Board of Education - regular employees Employees System
Board of Education - teachers Teachers System
Library Teachers System
Queen Anne's County:
Elected officials Employees System
Sheriff's Deputies LEOPS
Regular employees Employees System
The System is a cost sharing multiple-employer defined benefit pension plan.
Basis of Accounting
The System’s financial statements are prepared on the accrual basis of accounting in accordance with accounting
principles generally accepted in the United States of America. For purposes of measuring net pension liability, deferred
outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the
fiduciary net position of the System and additions to/deductions from the System’s fiduciary net position have been
determined on the same basis as they are reported by the System. For this purpose, benefit payments (including refunds
of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are
reported at fair value.
-88-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 12 - RETIREMENT PLANS (CONTINUED)
Covered Members
Teachers’ Retirement and Pension Systems
The Teachers’ Retirement System was established on August 1, 1927, to provide retirement allowances and other benefits
to teachers in the State. Effective January 1, 1980, the Teachers’ Retirement System was closed to new members and the
Teachers’ Pension System was established. As a result, teachers hired after December 31, 1979, became members of the
Teachers’ Pension System as a condition of employment. On or after January 1, 2005, an individual who is a member of
the Teachers’ Retirement System may not transfer membership to the Teachers’ Pension System.
Employees’ Retirement and Pension Systems
On October 1, 1941, the Employees’ Retirement System was established to provide retirement allowances and other
benefits to State employees, elected and appointed officials and the employees of participating governmental units.
Effective January 1, 1980, the Employees’ Retirement System was essentially closed to new members and the
Employees’ Pension system was established. As a result, State employees (other than correctional officers) and
employees of participating governmental units hired after December 31, 1979, became members of the Employees’
Pension System as a condition of employment, while all State correctional officers and members of the Maryland General
Assembly continue to be enrolled as members of the Employees’ Retirement System. On or after January 1, 2005, an
individual who is a member of the Employees’ Retirement System may not transfer membership to the Employees’
Pension System.
The Law Enforcement Officers’ Pension System (LEOPS)
The Law Enforcement Officers’ Pension System (LEOPS) was established on July 2, 1990, to provide retirement
allowances and other benefits for certain State and local law enforcement officers. This System includes both retirement
plan and pension plan provisions which are applicable to separate portions of the System’s membership. The retirement
plan provisions are only applicable to those members who, on the date they elected to participate in LEOPS, were
members of the Employees’ Retirement System. This System’s pension plan provisions are applicable to all other
participating law enforcement officers.
Summary of Significant Plan Provisions
All plan benefits are specified by the State Personnel and Pensions Article of the Annotated Code of Maryland. For all
individuals who are members of the Employees’, Teachers’, Correctional Officers’ or State Police Retirement System on
or before June 30, 2011, retirement allowances are computed using both the highest three years’ Average Final
Compensation (AFC) and the actual number of years of accumulated creditable service. For individuals who become
members of the State Police Retirement System or the Correctional Officers’ Retirement System on or after July 1, 2011,
retirement allowances are computed using both the highest five years’ AFC and the actual number of years of
accumulated creditable service. For all individuals who are members of the pension systems of the State Retirement and
Pension System on or before June 30, 2011, pension allowances are computed using both the highest three consecutive
years’ AFC and the actual number of years of accumulated creditable service. For any individual who becomes a
member of one of the pension systems on or after July 1, 2011, pension allowances are computed using both the highest
five consecutive year’s AFC and the actual number of years of accumulated creditable service. Various retirement
options are available under each system which ultimately determines how a retiree’s benefit allowance will be computed.
Some of these options require actuarial reductions based on the retiree’s and/or designated beneficiary’s attained age and
similar actuarial factors.
-89-

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 12 - RETIREMENT PLANS (CONTINUED)
Beginning July 1, 2011, the member contribution rate was increased for members of the Teachers’ Pension System and
Employees’ Pension Systems from 5% to 7% and from 4% to 6% respectively, in fiscal year 2013 and 7% in the fiscal
year 2014 and beyond for members of the Law Enforcement Officers’ Pension System. Beginning July 1, 2013, the
member contribution rate was increased for members of the Judges’ Retirement System from 6% to 8%.
In Addition, the benefit attributable to service on or after July 1, 2011 in many of the pension systems now will be subject
to different cost-of-living adjustments (COLA) that is based on the increase in the Consumer Price Index (CPI) and
capped at 2.5% or 1.0% based on whether the market value investment return for the preceding calendar year was higher
or lower than the investment return assumption used in the valuation.
A brief summary of the retirement eligibility requirements of and the benefits available under the various systems in
effect are as follows:
Service Retirement Allowances
A member of either the Teachers’ or Employees’ Retirement System is generally eligible for full retirement benefits upon
the earlier of attaining age 60 or accumulating 30 years of creditable service regardless of age. The annual retirement
allowance equals 1/55 (1.81%) of the member’s AFC multiplied by the number of years of accumulated creditable
service.
An individual who is a member of either the Teachers’ or Employees’ Pension System on or before June 30, 2011, is
eligible for full retirement benefits upon the earlier of attaining age 62, with specified years of eligibility service, or
accumulating 30 years of eligibility service regardless of age. An individual who becomes a member of either the
Teachers’ or Employees’ Pension System on or after July 1, 2011, is eligible for full retirement benefits if the member’s
combined age and eligibility service equals at least 90 years or if the member is at least age 65 and has accrued at least 10
years of eligibility service.
For most individuals who retired from either the Teachers’ or Employees’ Pension System on or before June 30, 2006,
the annual pension allowance equals 1.2% of the member’s AFC, multiplied by the number of years of creditable service
accumulated prior to July 1, 1998, plus 1.4% of the member’s AFC, multiplied by the number of years of creditable
service accumulated subsequent to June 30, 1998. With certain exceptions, for individuals who are members of the
Teachers’ or Employees’ Pension System on or after July 1, 2006, the annual pension allowance equals 1.2% of the
member’s AFC, multiplied by the number of years of creditable service accumulated prior to July 1, 1998, plus 1.8% of
the member’s AFC, multiplied by the number of years of creditable service accumulated subsequent to June 30, 1998.
Beginning July 1, 2011, any new member of the Teachers’ or Employees’ Pension System shall earn an annual pension
allowance equal to 1.5% of the member’s AFC multiplied by the number of years of creditable service accumulated as a
member of the Teachers’ or Employee’s Pension System.
Exceptions to these benefit formulas apply to members of the Employees’ Pension System, who are employed by a
participating governmental unit that does not provide the 1998 or 2006 enhanced pension benefits or the 2011 reformed
pension benefits. The pension allowance for those members equals 0.8% of the member’s AFC up to the social security
integration level (SSIL), plus 1.5% of the member’s AFC in excess of the SSIL, multiplied by the number of years of
accumulated creditable service. For the purpose of computing pension allowances, the SSIL is the average of the social
security wage bases for the past 35 calendar years ending with the year the retiree separated from service.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 12 - RETIREMENT PLANS (CONTINUED)
A member of the Law Enforcement Officers’ Pension System is eligible for full retirement benefits upon the earlier of
attaining age 50 or accumulating 25 years of eligibility service regardless of age. The annual retirement allowance for a
member who is covered under the retirement plan provisions equals 1/50 (2.0%) of the member’s AFC multiplied by the
number of years of accumulated creditable service up to 30 years, plus 1/100 (1.0%) of the member’s AFC multiplied by
the number of years of accumulated creditable service in excess of 30 years. For members subject to the pension
provisions, full service pension allowances equal 2.0% of AFC up to a maximum of 60% (30 years of credit).
Vested Allowances
Any individual who is a member of the State Retirement and Pension System on or before June 30, 2011 (other than a
judge or a legislator), and who terminates employment before attaining retirement age but after accumulating 5 years of
eligibility service is eligible for a vested retirement allowance. Any individual who joins the State Retirement and
Pension System on or after July 1, 2011 (other than a judge or a legislator), and who terminates employment before
attaining retirement age but after accumulating 10 years of eligibility service is eligible for a vested retirement allowance.
A member, who terminates employment prior to attaining retirement age and before vesting, receives a refund of all
member contributions and interest.
Early Service Retirement
A member of either the Teachers’ or Employees’ Retirement System may retire with reduced benefits after completing 25
years of eligibility service. Benefits are reduced by 0.5% per month for each month remaining until the retiree either
attains age 60 or would have accumulated 30 years of creditable service, whichever is less. The maximum reduction for a
Teachers’ or Employees’ Retirement System member is 30%.
An individual who is a member of either the Teachers’ or Employees’ Pension System on or before June 30, 2011 may
retire with reduced benefits upon attaining age 55 with a least 15 years of eligibility service. Benefits are reduced by
0.5% per month for each month remaining until the retiree attains age 62. The maximum reduction for these members of
the Teachers’ or Employees’ Pension System is 42%. An individual who becomes a member of either the Teachers’ or
Employees’ Pension System on or after July 1, 2011, may retire with reduced benefits upon attaining age 60 with at least
15 years of eligibility service. Benefits are reduced by 0.5% per month for each month remaining until the retiree attains
age 65. The maximum reduction for these members of the Teachers’ or Employees’ Pensions System is 30%.
Members of the State Police, Judges’, Law Enforcement Officers’ and Local Fire and Police Systems are not eligible for
early service benefits.
Disability and Death Benefits
Generally, a member covered under retirement plan provisions who is permanently disabled after 5 years of service
receives a service allowance based on a minimum percentage (usually 25%) of the member’s AFC. A member covered
under pension plan provisions who is permanently disabled after accumulating 5 years of eligibility service receives a
service allowance computed as if service had continued with no change in salary until the retiree attained age 62. A
member (other than a member of the Maryland General Assembly or a judge, both of which are ineligible for accidental
disability benefits) who is permanently and totally disabled as the result of an accident occurring in the line of duty
receives 2/3 (66.7%) of the member’s AFC plus an annuity based on all member contributions and interest. Death
benefits are equal to a member’s annual salary as of the date of death plus all member contributions and interest.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 12 - RETIREMENT PLANS (CONTINUED)
Adjusted Retirement Allowances
Retirement and pension allowances are increased annually to provide for changes in the cost of living according to
prescribed formula. Such adjustments for retirees are based on the annual change in the CPI. For the Teachers’ and
Employees’ Retirement Systems (TRS/ERS) the method by which the annual COLA’s are computed depends upon
elections made by members who were active on July 1, 1984 (or within 90 days of returning to service, for members who
were inactive on July 1, 1984) enabling the member to receive either an unlimited COLA , a COLA limited to 5% or a
two part combination COLA depending upon the COLA election made by the member.
Effective July 1, 1998, for Teachers’, Employees’, and LEOPS retirees, the adjustment is capped at a maximum 3%
compounded and is applied to all benefits which have been in payment for one year. The annual increase to pension
allowances for Employees’ Pension System retirees who were employed by a participating governmental unit that does
not provide enhanced pension benefits are limited to 3% of the initial allowance.
However, beginning July 1, 2011, for benefits attributable to service earned on or after July 1, 2011, in all of the systems
except the judges’ and legislators’ systems, the adjustment is capped in the lesser of 2.5% or the increase in CPI if the
most recent calendar year market value rate of return was greater than or equal to the assumed rate. The adjustment is
capped at the lesser of 1% or the increase in CPI if the market value return was less than the assumed rate of return. In
years in which COLAs would be less than zero due to a decline in the CPI, retirement allowances will not be adjusted.
COLAs in succeeding years are adjusted until the difference between the negative COLA that would have applied and the
zero COLA is fully recovered.
Actuarial Assumptions
The total pension liability in the June 30, 2015 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement:
Changes in Benefit Terms There were no benefit changes during the year.
Changes in Assumptions Adjustments to the roll-forward liabilities were made to reflect the following assumption changes in
the 2015 valuation:
Investment return assumption changed from 7.65% to 7.55%
Inflation assumption changed from 2.90% to 2.70%
Actuarial Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period In the 2012 actuarial valuation: eight years remaining as of June 30, 2012 for prior UAAL existing on
June 30, 2000 and 25 years from each subsequent valuation date for each year's additional UAAL for
the State systems and ECS Muni. 27 years for LEOPS Muni, and 34 years for CORS Muni. In the 2013
actuarial valuation: 25 years for the State System, 26 years for the LEOPS Muni, and 32 years for
CORS Muni. For ECS Muni: seven years remaining for prior UAAL existing on June 30, 2000. 25
years from each subsequent valuation date for each year's additional UAAL.
Asset Valuation Method 5-year smoothed market; 20% collar
Inflation In the 2012 actuarial valuation, 3.00% general, 3.50% wage. In the 2013 actuarial valuation, 2.95%
general, 3.45% wage.
Salary Increases In the 2012 actuarial valuation, 3.50% to 10.75% including inflation. In the 2013 actuarial valuation,
3.45% to 10.70% including inflation.
Investment Rate of Return In the 2012 actuarial valuation, 7.75%. In the 2013 actuarial valuation, 7.70%.
Discount Rate 7.55%
Investment Rate of Return 7.55%
Retirement Age Experienced-based table of rates that are specific to the type of eligibility condition. Last updated for
the 2015 valuation pursuant to an experience study of the period 2010-2014.
Mortality RP-2014 Mortality Tables with generational mortality projections using scale MP-2014, calibrated to
MSRPS experience.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 12 - RETIREMENT PLANS (CONTINUED)
Investments
The long-term expected rate of return on pension plan investments was determined using a building-block method in
which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term
expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and
by adding expected inflation. Best estimates of geometric real rates of return were adopted by the Board of Trustees after
considering input from the System’s investment consultant(s) and actuary(s). For each major asset class that is included
in the System’s target asset allocation, these best estimates are summarized in the following table:
Long-Term
Expected Real Rate
Asset Class Target Allocation of Return
Public Equity 35% 6.30%
Fixed Income 10% 0.60%
Credit Opportunity 10% 3.20%
Real Return 14% 1.80%
Absolute Return 10% 4.20%
Private Equity 10% 7.20%
Real Estate 10% 4.40%
Cash 1% 0.00%
Total 100%
The above was the Board of Trustees adopted asset allocation policy and best estimate of geometric real rates of return
for each major asset class as of June 30, 2015.
For the year ended June 30, 2015, the annual money-weighted rate of return on pension plan investments, net of the
pension plan investment expense, was 2.71%. The money-weighted rate of return expresses investment performance, net
of investment expense, adjusted for the changing amounts actually invested.
Discount rate
A single discount rate of 7.55% was used to measure the total pension liability. The single discount rate was based on the
expected rate of return on pension plan investments of 7.55%. The projection of cash flows used to determine this single
discount rate assumed that plan member contributions will be made at the current contribution rate and that employer
contributions will be made at rates equal to the difference between actuarially determined contribution rates and the
member rate. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to
make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 12 - RETIREMENT PLANS (CONTINUED)
Sensitivity of the Net Pension Liability
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following presents the
plan’s net pension liability, calculated using a single discount rate of 7.55%, as well as what the plan’s net pension
liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher:
1% Decrease Current 1% Increase
System to 6.55% Discount to 8.55%
County $ 34,939,693 $ 24,721,248 $ 16,248,120
Board of Education 6,426,301 4,546,868 2,988,444
Teachers’ and Employees’ Retirement Systems and Teachers’ and Employees’ Pension Systems
Employer Contributions:
In accordance with Maryland Senate Bill 1301, Budget Reconciliation and Financing Act of 2012, the Board is required
to pay the State a specified percentage of the normal cost portion of the total pension cost for teachers. The normal cost is
the portion of the total retirement benefit cost that is allocated to the current year of the employee’s service. The
specified percentage increases each fiscal year, until fiscal year 2017, when the Board will be paying 100% of the normal
cost for each teacher.
Pension Liabilities, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related
to Pensions
Because the State of Maryland pays the unfunded liability for the Teachers’ Systems on behalf of the Board and Library,
and the Board pays the normal cost for the Teachers’ Systems, the Board and Library are not required to record its’ share
of the unfunded pension liability for the Teachers’ Systems, the State of Maryland is required to record that liability. The
Board is required to record a liability for the Employees’ Systems.
At June 30, 2016, the Board of Education reported a liability for its proportionate share of the net pension liability that
reflected a reduction for State pension support provided to the Board. The amount recognized by the Board as its
proportionate share of the net pension liability, the related State support, and the total portion of the net pension liability
that was associated with the Board were as follows:
Board's proportionate share of the net pension liability $ 4,546,868
State's proportionate share of the net pension liability 61,362,581
Total $ 6 5,909,449
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 12 - RETIREMENT PLANS (CONTINUED)
The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The County’s proportion of the net pension
liability was calculated as follows by the System(s):
1. Calculate the net pension liability for the entire System. For purposes of funding the System, all calculations are
determined on an actuarial basis and are completed through the development of rates based on two separate
asset pools, one for employees of the State of Maryland (the State) and one for the Participating Governmental
Units (“PGUs”). These pools are kept on an actuarial basis and allow for the State to fund only State employees
and PGUs to fund only PGU employees. For the accounting of the System, however, the assets of the System
are accounted in a single pool which is audited annually.
2. Determine the total contributions to the System by the State and PGUs, inclusive of any underfunding of
contributions.
3. Based on the number of participants at each Board of Education, calculate the difference between what each
Board would have contributed if they funded at the rate of all other participating governments and what the
Board actually contributed. The difference between what the Board contributed and what they would have
contributed if they funded at the rate of the other participating governments, is then added to the total
contribution to the System, to calculate the System’s adjusted contribution.
4. Calculate for each participating government, their percentage of the adjusted System contribution by dividing
the total adjusted System contribution into each primary government contribution.
5. Provide each PGU its adjusted percentage of contribution and the System’s net pension liability and other
related amounts.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 12 - RETIREMENT PLANS (CONTINUED)
At June 30, 2016, the County reported the following related to pensions:
BOARD OF
COUNTY EDUCATION
Employer's proportionate (percentage) of the collective net pension liability 0.1189567% 0.0218792%
Employer's proportionate share of the collective net pension liability $ 24,721,248 $ 4,546,868
Pension expense recognized by the employer for the year ended June 30, 2016 $ 2,974,012 $ 818,792
Deferred outflows of resources June 30, 2015 $ 2,773,908 $ 512,789
Year end June 30, 2015 contributions ( 2,507,287) (461,154)
Difference between expected and actual experience 2,177,428 400,484
Change in assumptions 1,237,495 227,607
Amortization of items allowed by GASB 68 (66,655) (12,909)
Year end June 30, 2016 contributions 2,477,009 424,398
Deferred outflows of resources June 30, 2016 $ 6,091,898 $ 1,091,215
Deferred inflows of resources June 30, 2015 $ 2,017,411 $ 390,704
Difference between expected and actual experience 506,269 9 3,116
Amortization of items allowed by GASB 68 (504,353) (97,676)
Deferred inflows of resources June 30, 2016 $ 2,019,327 $ 386,144
NPL June 30, 2015 $ 18,431,162 $ 3,569,488
Change in NPL factored for contributions 6,290,086 977,380
NPL June 30, 2016 $ 24,721,248 $ 4,546,868
The $2,477,009 and $424,398 of deferred outflows of resources resulting from the County and the Board’s contributions
to the Employees’ Systems subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ending June 30, 2017. Other amounts reported as deferred outflows of resources will be amortized
over a five year period, as follows:
2015 Amortization 2014 Amortization
Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows
Difference between Difference between Difference between
Change in Change in
expected and actual expected and actual expected and actual
assumptions assumptions
June 30, experience experience experience
2017 $ 544,357 $ 254,106 $ (103,957) $ 66,655 $ (504,353)
2018 544,357 254,106 (103,957) 66,655 (504,353)
2019 544,357 254,106 (103,957) 66,656 (504,352)
2020 544,357 254,106 (103,957) - -
2021 - 221,071 (90,441) - -
Total $ 2,177,428 $ 1,237,495 $ (506,269) $ 199,966 $ (1,513,058)
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 12 - RETIREMENT PLANS (CONTINUED)
Total Covered On-Behalf
Payroll Payroll By State
County - MD Retirement and pension $ 27,754,218 $ 23,160,758 $ -
Board of Education 57,583,209 54,372,599 5,799,139
Library 1,203,196 1,203,196 151,611
Covered payroll refers to all compensation paid to active employees covered by the Systems.
Pension contributions made by the State of Maryland, on behalf of the Board of Education and the Library are recognized
as both revenue and expenditure.
NOTE 13 - DEFERRED COMPENSATION PLAN
The County offers its employees a deferred compensation plan created in accordance with Internal Revenue Code
Section 457. The Plan, available to all County employees, permits them to defer a portion of their salary until future
years. Participation in the plan is optional. The deferred compensation is not available to employees until
termination, retirement, death or unforeseeable emergency.
All amounts of compensation deferred under the plan; all property and rights purchased with those amounts; and all
income attributable to those amounts, property or rights are solely the property and rights of the participants. The
County has no liability for losses under the plan.
Investments are managed by the plan’s administrator based on several different investment options, or combinations
thereof. The choice of the investment option(s) to be used is made by each participant. The County has no
management control over the assets of the plan. Accordingly, per GASB Statement No. 32, the assets of the plan are
not included in these financial statements.
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS
Other Post-Employment Benefit Trust (OPEB Trust)
On June 23, 2009, the County enacted County Ordinance No. 09-12, which established a Trust entity entitled “Other
Post-Employment Benefit Trust – County Commissioners of Queen Anne’s County, County Commissioners of Kent
County, and Participating Agencies” (OPEB Trust). The purpose of the OPEB Trust is to: (1) fund costs of health
insurance and other post-employment benefits to eligible retirees of the primary government, the Queen Anne’s
County Board of Education, and the Queen Anne’s County Free Library; (2) accumulate and invest financial
resources for this purpose; (3) provide health insurance and other post-employment benefits for eligible retirees; and
(4) provide related administrative services.
Other agencies and political subdivisions have the right to participate in this Trust now and in the future. Such
unrelated entities may deposit funds with the Trust for investment purposes related to their OPEB plans. At June 30,
2016, funds in the amount of $157,033 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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Other Post-Employment Benefit Trust (OPEB Trust) (Continued)
OPEB Trustees have exclusive authority to manage the assets of the Trust. The Board of Trustees consists of five
members: two representing Queen Anne’s County Government; two representing the Queen Anne’s County Board of
Education; and one representing Kent County. In lieu of separate financial statements for the OPEB Trust, Queen
Anne’s County presents the Trust entity’s complete financial statements within this document.
In fiscal year 2015, the County Commissioners approved the County joining the MACo (Maryland Association of
Counties) Pooled OPEB Investment Trust Fund. However, no funds were deposited into this trust until July 2015. In
July 2015, the County transferred $500,000 in funding from the existing Trust to the MACo Trust. No other funds
have been transferred to date. All information presented in this note on other post-employment benefits refer to the
Trust entity entitled “Other Post-Employment Benefit Trust – County Commissioners of Queen Anne’s County,
County Commissioners of Kent County, and Participating Agencies” (OPEB Trust). A separate Trust document for
the MACo OPEB Trust can be found on the MACo website at www.mdcounties.org.
Plan Description
The County’s Other Post-Employment Benefit Plan (OPEB Plan) is an agent multiple-employer defined benefit
healthcare plan that covers retired employees of the primary government, the Queen Anne’s County Board of
Education, and the Queen Anne’s County Free Library. The Plan was established as specified in County Ordinance
No. 09-12.
Plan descriptions and actuarial assumptions for each participant are described: (1) as follows for the primary
government and (2) in financial statements issued separately for all other participants. Addresses for other
participants are noted below in this Note.
Primary Government
The County’s Retiree Health Insurance Program provides medical insurance benefits to retirees and their eligible
dependents. The retiree and their dependents will receive a subsidy as outlined in the tables below provided that (1)
the retiree retired directly from County service with a County retirement/pension allowance, (2) has health insurance
through the County prior to retirement, (3) retired with at least 15 years of County service, and (4) the retiree elects to
participate upon retirement. Retirees who retire directly from County service with a County retirement/pension with
less than 15 years of County service, who have health insurance through the County prior to retirement and who elect
to participate upon retirement are eligible for the County’s Retiree Health Insurance Program however are not eligible
for a subsidy.
Table 1 – Subsidy for employees who retire prior to September 2, 2011
Years of County
Total Subsidy
Service Prior to
Percentage
Retirement
14 Years 0.0%
15 Years 54.0%
16 Years 57.6%
17 Years 61.2%
18 Years 64.8%
19 Years 68.4%
20 Years 72.0%
21 Years 75.6%
22 Years 79.2%
23 Years 82.8%
24 Years 86.4%
25 or more Years 90.0% (max)
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Plan Description (Continued)
Table 2 – Subsidy for employees who retire between September 2, 2011 and August 31, 2012
Years of County
Service Prior to Total Subsidy Percentage
Retirement
PPO Plan EPO Plan
14 Years 0.0% 0.0%
15 Years 54.0% 54.0%
16 Years 57.1% 57.6%
17 Years 60.2% 61.2%
18 Years 63.3% 64.8%
19 Years 66.4% 68.4%
20 Years 69.5% 72.0%
21 Years 72.6% 75.6%
22 Years 75.7% 79.2%
23 Years 78.8% 82.8%
24 Years 81.9% 86.4%
25 or more Years 85.0% (max) 90.0% (max)
Table 3 – Subsidy for employees who retire on or after September 1, 2012
Years of County
Service Prior to Total Subsidy Percentage
Retirement
PPO Plan EPO Plan
14 Years 0.0% 0.0%
15 Years 54.0% 54.0%
16 Years 56.6% 57.1%
17 Years 59.2% 60.2%
18 Years 61.8% 63.3%
19 Years 64.4% 66.4%
20 Years 67.0% 69.5%
21 Years 69.6% 72.6%
22 Years 72.2% 75.7%
23 Years 74.8% 78.8%
24 Years 77.4% 81.9%
25 or more Years 80.0% (max) 85.0% (max)
Participating Agencies
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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Plan Description (Continued)
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 Kent County
Queen Anne’s County Free Library Government
202 Chesterfield Avenue 121 S. Commerce Street 400 High Street
Centreville, Maryland 21617 Centreville, MD 21617 Chestertown, MD 21620
Plan Membership
Plan membership as of the date of the most recent actuarial valuation consisted of the following:
Plan Membership Active Retirees
Queen Anne's County 358 209
Board of Education 827 297
Library 15 5
Total 1 ,200 511
Basis of Accounting and Financial Statements
The Plan’s financial information is prepared on the full accrual basis of accounting. Expenses are recognized as
retirees’ insurance costs are incurred.
For further financial information, Summary and Combining financial statements may be found within this report, as
listed in the table of contents. Required Supplementary Information may be found after these Notes.
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.
To avoid reporting a liability for the current year’s contribution, each employer must contribute its annual required
contribution (ARC), 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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Annual OPEB Cost and Net OPEB Obligation
Total
Queen Anne's Board of for All
County Education Library Employers
Actuarial accrued liability (AAL) $ 51,063,866 $ 88,523,000 $ 512,774 $ 140,099,640
Actuarial value of plan assets 1,959,640 545,000 3 0,347 2,534,987
Unfunded actuarial accrued liability (UAAL) $ 49,104,226 $ 87,978,000 $ 482,427 $ 137,564,653
Funded Ratio (Actuarial value of plan assets / AAL) 3.84% 0.62% 5.92% 1.81%
Annual Required Contribution (ARC) $ 4,206,959 $ 8,430,000 $ 31,872 $ 12,668,831
Interest on Net OPEB Obligations 2,392,327 1 ,562,000 7 5,573 4,029,900
Adjustment to ARC ( 2,409,722) (1,960,000) (76,126) (4,445,848)
Total Annual OPEB Cost 4,189,564 8 ,032,000 3 1,319 1 2,252,883
Less: Trust Contributions (838,000) - - ( 838,000)
Less: Pay-As-You-Go Contributions ( 1,283,316) (1,753,599) (20,100) (3,057,015)
Total Contributions ( 2,121,316) (1,753,599) (20,100) (3,895,015)
Increase in Net OPEB Obligation 2,068,248 6 ,278,401 1 1,219 8,357,868
Net OPEB Obligation beginning of year 39,872,120 40,085,868 1,259,558 8 1,217,546
Net OPEB Obligation end of year $ 41,940,368 $ 46,364,269 $ 1,270,777 $ 89,575,414
Percent of Annual OPEB Cost Contributed 50.6% 21.8% 64.2% 31.8%
Covered payroll $ 20,650,915 $ 30,426,251 $ 1,203,196 $ 52,280,362
UAAL as a percentage of Covered Payroll 237.8% 289.2% 40.1% 263.1%
((UAAL) / covered payroll)
The Net OPEB Obligation (NOO) of $41,940,368 at the end of the year for the County consisted of liabilities of
$35,511,934 for Governmental Activities and $6,428,434 for Business Type Activities.
The schedule of funding progress, presented as required supplementary information (RSI) 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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (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 pension cost, as shown by the
percentage of ARC contributed. Generally, the greater this percentage, the stronger the system is becoming.
Fiscal Annual Percentage Net OPEB
Year Ended Postemployment ARC of ARC Obligation
Participating Agency June 30 Benefit Cost Contributed Contributed (NOO)
Queen Anne's County 2009 $ 5,312,000 $ 1,007,954 18.98% $ 4,304,046
2010 6,410,934 604,221 9.42% 5,806,713
2011 7,256,495 835,792 11.52% 6,420,703
2012 7,806,661 1,508,144 19.32% 6,298,517
2013 9,024,000 1,668,781 18.49% 7,355,219
2014 9,187,000 1,692,951 18.43% 7,494,049
2015 4,004,722 1,811,849 45.24% 2,192,873
2016 4,189,564 2,121,316 50.63% 2,068,248
5 3,191,376 11,251,008 21.15% 41,940,368
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
2011 6,535,000 1,276,130 19.53% 5,258,870
2012 6,953,000 1,409,451 20.27% 5,543,549
2013 8,083,000 1,405,124 17.38% 6,677,876
2014 8,570,000 1,488,965 17.37% 7,081,035
2015 7,590,000 1,600,921 21.09% 5,989,079
2016 8,032,000 1,753,599 21.83% 6,278,401
5 8,010,000 11,645,731 20.08% 46,364,269
Library 2009 178,000 3 8,234 21.48% 139,766
2010 212,000 1 2,200 5.75% 199,800
2011 234,000 1 2,302 5.26% 221,698
2012 250,000 1 9,600 7.84% 230,400
2013 250,000 2 8,400 11.36% 221,600
2014 258,000 2 4,000 9.30% 234,000
2015 32,394 2 0,100 62.05% 12,294
2016 31,319 2 0,100 64.18% 11,219
1,445,713 174,936 12.10% 1,270,777
Totals 2009 1 1,397,000 2,581,143 22.65% 8,815,857
2010 1 2,962,934 1,793,007 13.83% 11,169,927
2011 1 4,025,495 2,124,224 15.15% 11,901,271
2012 1 5,009,661 2,937,195 19.57% 12,072,466
2013 1 7,357,000 3,102,305 17.87% 14,254,695
2014 1 8,015,000 3,205,916 17.80% 14,809,084
2015 1 1,627,116 3,432,870 29.52% 8,194,246
2016 1 2,252,883 3,895,015 31.79% 8,357,868
$ 112,647,089 $ 2 3,071,675 20.48% $ 89,575,414
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
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 June 30, 2015
Actuarial cost method Entry Age
Amortization method Closed
Amortization period 23 years (as of June 30, 2015)
Interest Assumptions 6.0% investment rate of return
Asset valuation method Market value of assets
Inflation Rate 2.75% per year
Salary increases 3% per year
Mortality RP 2000, Combined Healthy tables (male &
female), fully generational with scale AA. The
RP2000 Combined Disabled Tables are used
for disabled members.
Actuarial trend assumptions:
2015 6.5%
2016-2017 6.0%
2018-2021 5.9%
2022-2026 5.8%
2027-2039 5.7%
2040-2049 5.2%
2050-2059 5.0%
2060-2069 4.8%
2070 & Later 4.3%
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 15 – DEFICIT EQUITY BALANCES
The following Non-Major Governmental Funds ended the year with deficit balances in unassigned fund balance:
Housing and Community Services Fund
The Housing and Community Services Fund has a negative unassigned fund balance of $65,255 as of June 30, 2016.
This negative balance will clear itself as the balance of outstanding loans receivable in the Housing and Community
Services Fund decreases.
Capital Projects – Fire Company Impact Fees Fund
The Capital Projects – Fire Company Impact Fees Fund has a negative unassigned fund balance of $49,874 as of June
30, 2016. This negative fund balance is the result of an overpayment to a particular fire department, and will decrease
over time as the incoming revenues offset the overpayment.
The following Enterprise Funds ended the year with deficit equity balances:
Bay Bridge Airport Enterprise Fund
The Bay Bridge Airport Enterprise Fund has a deficit balance in unrestricted net position of $510,656 as of June 30,
2016.
Golf Course Enterprise Fund
The Golf Course Enterprise Fund has a deficit balance in unrestricted net position of $517,393 as of June 30, 2016.
The County Commissioners established the guideline that the Enterprise Funds should be self-supporting, to the
extent possible. Therefore, a variety of measures are being evaluated in order to attempt the goal of balancing the
Enterprise Funds.
NOTE 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, 2016 may be impaired. The County’s management believes that there are no
significant contingent liabilities that must be recorded relating to compliance with the rules and regulations governing
these programs. No funds were required to be returned in Fiscal Year 2016.
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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 16 - COMMITMENTS AND CONTINGENCIES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
In fiscal year 2010, the County’s Department of Housing and Community Services received a grant of $350,000 from the
Maryland Department of Housing and Community Development. This Maryland Neighborhood Conservation Initiative
(NCI) Grant provided funding to be used for the acquisition and purchase of foreclosed properties for resale to qualifying
homebuyers, as well as the issuance of zero percent deferred payment loans to eligible critical service workers. Per the
terms of the agreement, the grantee may reuse funds for these same activities until June 30, 2013. Funds returned to the
County from program participants after June 30, 2013 must be returned to the state. Therefore, this grant has been
recorded as a pass-through grant, with the County contingently liable for the return of these funds to the state at some
point in time after June 30, 2013. During Fiscal Year 2014, the County identified $69,569 in funds that were required to
be returned to the grantor per grant provisions. No funds were required to be returned in fiscal years 2015 or 2016.
In accordance with the provisions of GASB Statement 54, Fund Balance Reporting and Governmental Fund Type
Definitions, the County has committed certain fund balances for future construction projects. In the General Capital
Projects Fund, a total of $2,815,139 has been committed, including $1,973,752 for the construction of a new County
Courthouse, $761,754 for rubble surcharge, and $79,633 for site improvements pursuant to agreements with local
developers. In the Roads Capital Projects Fund, $610,562 has been contributed by developers and is committed to fund
infrastructure improvements.
Income Tax Contingency - In the case of the Maryland State Comptroller of the Treasury v. Brian Wynne, Mr. Wynne
challenged the Maryland statute, arguing that the statute violated the Commerce Clause of the Federal Constitution
because it burdened Maryland residents that conducted interstate business. The Maryland Court of Appeals decision
found that “failure to allow a credit with respect to the county taxes for out-of-state income taxes paid to other states on
pass-through income earned in those states discriminates against interstate commerce and violates the Commerce Clause
of the Federal Constitution.” The Attorney General’s Office filed an appeal with the Supreme Court. The Supreme
Court heard the case and determined that this taxing scheme was unconstitutional because it discriminated in favor of
intrastate over interstate economic activity in violation of the dormant Commerce Clause.
Based on the findings, Queen Anne’s County reduced the receivable from the State for income taxes and the offsetting
deferred inflows by the estimated fiscal impact for the County for tax years going back to 2009 which totaled $825,000
including interest. The adjustment does not change the total fund balance for the General Fund. Since the County already
received the money in income taxes in prior years, the amount of anticipated liability for the Wynne Case impact on the
County is assigned in the General Fund. When the State begins taking the funds back, the County will release the amount
from the assigned fund balance. The amount of anticipated liability is based on assessments provided by the Maryland
Comptroller’s Office and the County believes these figures to be within reason.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 17 – JOINT VENTURE
In 1991, the County Commissioners, in conjunction with Talbot, Caroline, and Kent Counties, entered into a regional
partnership known as the Midshore Regional Landfill Joint Venture. This venture was formed to provide a long-term,
solid waste management solution for the four-county area. As part of the agreement, each of the four Counties agreed to
host a solid waste facility for a twenty year period, giving the venture a total duration of eighty years. In 1991, the
Midshore Regional Landfill opened in Talbot County and served the waste management needs of the four-County area
for twenty years. This facility, owned and operated by the Maryland Environmental Service (MES), closed on December
31, 2010. The second Midshore facility, Midshore II, opened in Caroline County in January 2011 and is fully
operational. After the facility in Caroline County reaches capacity, another landfill will be constructed in Queen Anne's
County, with Kent County to follow in turn. Each County is required to, and has, set aside sufficient land to construct a
landfill within their borders. The agreement expires when the last of the four landfills is closed.
Queen Anne’s County has a 34.43% 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.
During fiscal year 2011, the landfill located in Talbot County, Midshore I, was closed. As of June 30, 2016, total closure
and post closure costs for Midshore I was estimated at approximately $3.3 million. Midshore II, located in Caroline
County, was 14.54% filled. Closure and post closure costs for Midshore II are estimated at approximately $14.2 million.
Therefore, the total closure and post closure costs for both landfills are $17.5 million, with approximately $6 million
attributable to Queen Anne’s County. These costs are paid from tipping fees of acceptable waste delivered by or for the
account of the counties. It is currently expected that sufficient funds will be available from landfill revenues to pay future
closure and post closure costs. MES has accrued and reported a long-term liability of $5.2 million as of June 30, 2016,
determined by the estimated useful life of the landfill.
Similar to the post closure costs, each of the participating Counties is contingently liable for the debt related to the new
facility, Midshore II. Midshore II was funded with project revenue bonds totaling $21 million. As of June 30, 2016,
$7.2 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 $320,672 in
tipping fees to the facility during fiscal 2016.
MES has satisfied its financial assurance requirements based upon the local government financial ratio tests of the project
participants as of June 30, 2016. MES expects to satisfy these requirements as of June 30, 2017 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.
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QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2016
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).
Since the testing program began in 2008, the County incurred a total of $402 thousand in expenses, including $16
thousand in fiscal year 2016, to comply with the provisions of the program. Costs covered remediation work and
consulting fees; the latter for testing, studies, and monitoring. Remediation efforts included demolition and removal of
the existing fuel depot at the Public Works Centreville Shop; remediation of the soils via excavation; offsite controlled
disposal and backfill; installation of monitoring wells; in situ chemical oxidation and dual phase extraction; attorney’s
fees and miscellaneous environmental consulting services.
In May 2010, MDE requested the County devise a Corrective Action Plan (CAP) to address contamination concerns at
the fuel depot site. In August 2010, MDE approved the County’s CAP work which included the installation of additional
monitoring wells and one year of monitoring, sampling, testing and furnishing of those reports to MDE.
In November 2011, due to uneven results from the prior year’s monitoring tests, MDE requested the County submit a
technical plan to conduct an initial site injection, a measure which included the application of decontaminating chemicals
to the soil in an effort to determine the dosage rate and the corresponding reduction in pollutants that could be achieved.
Based on the plan approved by MDE, the County awarded a contract for the initial injection, and performed the
remediation work in the summer of 2012. Since the results of this initial injection did not achieve the desired effects, a
follow up plan is underway which includes continued quarterly monitoring, sampling, and testing. Also, communications
are underway to seek closure of this site from MDE.
On November 6, 2013, during routine quarterly monitoring, Liquid Phase Hydrocarbon (LPH) was encountered in only
MW-2A. MDE was properly notified and with their concurrence, the LPH was extracted from the well and disposed of
legally. The County was subsequently directed by MDE to perform weekly gauging of MW-2A and others on the site to
determine if the rebound would exceed 0.50 feet of LPW and if any of the other monitoring wells (MW) had LPW
present. LPH was not detected in any other MW and rebound did not approach 0.50 of LPW in MW-2A. Pursuant to an
April 1, 2014 letter from MDE, the County was directed to perform an Enhanced Fluid Recovery (EFR) in MW-2A and
follow-up with subsequent well gauging and monitoring because of the continued presence of LPH in MW-2A. This
procedure was conducted in compliance with MDE on April 23, 2014.
In December of 2014, a leak was discovered at the 10,000 gallon fuel oil UST for the office building. MDE required the
removal of the tank and mitigation of the contaminated soils and ground water. The tank has been replaced with a
compliant above ground 1,500 gallon fuel oil storage tank. This work was completed, including compliant disposal of all
soils by May 2015. MDE subsequently directed the County to install two additional monitoring wells and to abandon the
former injection wells on-site.
The final scope of work is yet to be determined by MDE and the County. The presence of LPH in MW-2A continues to
be monitored, fluctuates in depth, and currently appears to be recoverable only in minimal amounts. The County is
continuing with the approved MDE monitoring program as described above and anticipates further direction from MDE
in 2017.
The estimated costs over the next year are not material, and thus no liability has been recorded at this time. None of
these outlays met the requirements for capitalization noted in GASB Statement 49 and they were not capitalized.
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-108-

Required Supplementary Information
-109-

QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2016
MARYLAND STATE RETIREMENT AND PENSIONS SYSTEMS
SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
Plan's
Fidcuciary
Employer's Employer's Proportionate Net Position
Proportion Proportion Share Plan's as a
(Percentage) Share Employer's as a Total Plan's Percentage
of the of the Covered Percentage Fiduciary Total of Total
Fiscal Measurement Collective Collective Employee of Covered Net Pension Pension
Year Date NPL NPL Payroll Payroll Position Liability Liability
A B C (B / C) D E (D / E)
2015 June 30, 2014 0.1038567% $ 18,431,162 $ 21,231,535 87% $ 45,339,988,000 $ 63,086,719,000 72%
2016 June 30, 2015 0.1189567% 24,721,248 23,160,758 107% 45,789,840,000 66,571,552,000 69%
SCHEDULE OF CONTRIBUTIONS
Actual
Contribution
Employer's as a
Contractually Contribution Covered Percentage
Fiscal Measurement Required Actual Deficiency Employee of Covered
Year Date Contribution Contribution (Excess) Payroll Payroll
A B (A - B) C (B / C)
2015 June 30, 2014 $ 2,420,235 $ 2,420,235 $ - $ 21,231,535 11%
2016 June 30, 2015 2,507,287 2,507,287 - 23,160,758 11%
Both schedules above are presented to illustrate the requirements to show information for 10 years. However, until
full 10-year trends are compiled, pension plans should present information for those years for which the information
is available.
ACTUARIAL ASSUMPTIONS – PENSION PLAN
Changes in Benefit Terms There were no benefit changes during the year.
Changes in Assumptions Adjustments to the roll-forward liabilities were made to reflect the following assumption changes in
the 2015 valuation:
Investment return assumption changed from 7.65% to 7.55%
Inflation assumption changed from 2.90% to 2.70%
Actuarial Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period In the 2012 actuarial valuation: eight years remaining as of June 30, 2012 for prior UAAL existing on
June 30, 2000 and 25 years from each subsequent valuation date for each year's additional UAAL for
the State systems and ECS Muni. 27 years for LEOPS Muni, and 34 years for CORS Muni. In the 2013
actuarial valuation: 25 years for the State System, 26 years for the LEOPS Muni, and 32 years for
CORS Muni. For ECS Muni: seven years remaining for prior UAAL existing on June 30, 2000. 25
years from each subsequent valuation date for each year's additional UAAL.
Asset Valuation Method 5-year smoothed market; 20% collar
Inflation In the 2012 actuarial valuation, 3.00% general, 3.50% wage. In the 2013 actuarial valuation, 2.95%
general, 3.45% wage.
Salary Increases In the 2012 actuarial valuation, 3.50% to 10.75% including inflation. In the 2013 actuarial valuation,
3.45% to 10.70% including inflation.
Investment Rate of Return In the 2012 actuarial valuation, 7.75%. In the 2013 actuarial valuation, 7.70%.
Discount Rate 7.55%
Investment Rate of Return 7.55%
Retirement Age Experienced-based table of rates that are specific to the type of eligibility condition. Last updated for
the 2015 valuation pursuant to an experience study of the period 2010-2014.
Mortality RP-2014 Mortality Tables with generational mortality projections using scale MP-2014, calibrated to
MSRPS experience.
-110-

QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2016
OTHER POST-EMPLOYMENT BENEFITS TRUST
The following required supplementary information relates to the OPEB plan described in Note 14. This information
is intended to help users assess the system’s funding status on a going-concern basis; assess progress made in
accumulating assets to pay benefits when due; and make comparisons among employers.
SCHEDULE OF 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.
(A) (B - A) ((B - A) / C)
Value of (B) Unfunded UAAL as a
Year Assets at Accrued Accrued (A / B) (C) Percentage
Ended Valuation Valuation Liability Liability Funded Covered of Covered
June 30, Date Date (AAL) (UAAL) Ratio Payroll Payroll
2009 July 1, 2008 $ - $ 49,107,000 $ 49,107,000 0.00% $ 23,690,163 207%
2010 July 1, 2009 500,000 63,935,000 63,435,000 0.78% 23,778,696 267%
2011 July 1, 2010 500,000 70,570,000 70,070,000 0.71% 20,439,972 343%
2012 July 1, 2011 7 7,000 76,949,000 76,872,000 0.10% 18,903,632 407%
2013 July 1, 2012 8 2,000 93,915,000 93,833,000 0.09% 17,640,063 532%
2014 July 1, 2013 976,790 95,676,000 94,699,210 1.02% 17,953,154 527%
2015 June 30, 2015 1,959,640 51,063,866 49,104,226 3.84% 19,064,280 258%
2016 June 30, 2015 1,959,640 51,063,866 49,104,226 3.84% 20,650,915 238%
BUDGETARY COMPARISONS FOR THE GENERAL FUND
Required Supplementary Information provides budget-to-actual comparisons for the General Fund. Budgets are adopted
using the same method of accounting as that used for reporting purposes, i.e. according to generally accepted accounting
principles as used in the United States of America (GAAP).
-111-

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, 2016
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ 64,979,662 $ 6 5,060,459 $ 64,912,515 $ (147,944)
Local Income Tax 44,767,650 45,859,470 4 6,424,552 565,082
Admission and Amusement Taxes 160,000 160,000 1 69,679 9,679
Recordation Taxes 3,950,500 3,950,500 4 ,036,356 85,856
County Transfer Taxes 1,729,370 1,729,370 1 ,923,016 193,646
State Shared Taxes 565,108 565,108 6 11,835 46,727
Licenses and Permits 657,243 657,243 6 24,570 (32,673)
Intergovernmental 1,794,609 1,866,366 1 ,944,716 78,350
Bond Interest Reimbursement - Build America Bond 373,301 373,301 3 64,799 (8,502)
Charges for Current Services 2,473,500 2,473,500 2 ,265,561 (207,939)
Fines and Forfeitures 70,000 70,000 1 42,006 72,006
Investment Income 49,525 49,525 92,664 43,139
Donations 1,800 1,800 3,638 1,838
Miscellaneous 682,200 683,100 7 68,758 85,658
Total Revenues 122,254,468 1 23,499,742 124,284,665 784,923
EXPENDITURES
GENERAL GOVERNMENT
Legislative 464,961 464,961 3 84,857 80,104
Judicial
Circuit Court 557,778 564,458 3 73,073 191,385
Orphan's Court 83,236 83,236 79,043 4,193
State's Attorney 1,114,858 1,227,628 1 ,225,885 1,743
County Administrator 221,280 221,280 1 87,858 33,422
Board of Elections 749,906 749,906 7 02,849 47,057
Finance Office 1,113,928 1,113,928 1 ,109,488 4,440
Human Resources 561,121 561,121 5 25,549 35,572
Planning and Zoning 2,126,846 2,126,846 2 ,003,904 122,942
Information Technology 895,051 895,051 8 85,900 9,151
Legal Services 465,000 465,000 3 61,940 103,060
Total General Government 8,353,965 8,473,415 7 ,840,346 633,069
PUBLIC SAFETY
Sheriff's Office 7,123,681 7,138,489 7 ,124,503 13,986
Volunteer Fire and Rescue Services 3,514,550 3,119,550 3 ,069,303 50,247
Detention Center 4,548,898 4,548,898 4 ,355,725 193,173
Emergency Services 7,717,174 7,748,251 7 ,584,369 163,882
Animal Control 282,774 288,774 2 88,212 562
Total Public Safety 23,187,077 22,843,962 2 2,422,112 421,850
PARKS AND PUBLIC WORKS
Administration 382,715 497,715 4 95,071 2,644
Solid Waste Disposal 1,823,016 1,823,016 1 ,280,480 542,536
Engineering Division 592,121 657,121 6 53,644 3,477
Roads Division 4,289,502 4,354,502 4 ,351,780 2,722
General Services 2,370,899 2,370,899 2 ,182,455 188,444
Parks 3,123,628 3,123,628 3 ,084,985 38,643
Weed Control 104,683 104,683 99,182 5,501
Total Parks and Public Works 12,686,564 12,931,564 1 2,147,597 783,967
CONTINUED
-112-

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, 2016
(CONTINUED)
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
HEALTH, SOCIAL, AND RECREATION
Health Department $ 2,195,628 $ 2,195,628 $ 1 ,992,208 $ 203,420
Social Services 329,576 329,576 2 92,978 36,598
Recreation 564,975 579,975 5 78,735 1,240
Total Health, Social, and Recreation 3,090,179 3,105,179 2 ,863,921 241,258
EDUCATION AND LIBRARY
Board of Education 51,086,979 51,086,979 5 1,086,979 -
Teacher Pensions 1,763,314 1,763,314 1 ,763,314 -
Chesapeake College 1,850,552 1,850,552 1 ,794,834 55,718
Queen Anne's County Free Library 1,597,000 1,597,000 1 ,597,000 -
Total Education and Library 5 6,297,845 5 6,297,845 5 6,242,127 55,718
CONSERVATION OF NATURAL RESOURCES
Cooperative Extension Service 271,749 272,249 2 71,890 359
Soil Conservation Service 198,999 198,999 1 89,433 9,566
4-H Park 74,052 74,052 68,705 5,347
Total Conservation of Natural Resources 544,800 545,300 5 30,028 15,272
ECONOMIC AND COMMUNITY DEVELOPMENT
Community Affairs 344,098 344,098 3 07,515 36,583
Total Economic and Community Development 344,098 344,098 3 07,515 36,583
DEBT SERVICE
School Debt Service - Principal 5,546,359 5,546,359 5 ,480,217 66,142
School Debt Service - Interest 2,605,426 2,230,426 2 ,223,994 6,432
County Debt Service - Principal 1,959,656 2,184,976 2 ,142,674 42,302
County Debt Service - Interest 1,508,775 1,333,775 1 ,316,358 17,417
Total Debt Service 11,620,216 11,295,536 1 1,163,243 132,293
INTERGOVERNMENTAL
Aid to Municipalities 583,889 583,889 1 46,409 437,480
SDAT Costs from State 250,000 250,000 2 27,978 22,022
Total Intergovernmental 833,889 833,889 3 74,387 459,502
CONTINUED
-113-

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, 2016
(CONTINUED)
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
MISCELLANEOUS
Aid to Other Agencies $ 146,000 $ 146,000 $ 1 42,369 $ 3,631
Insurance & Benefits 2,054,500 1,898,500 1 ,776,502 121,998
Transfer to OPEB Fund 838,000 838,000 8 38,000 -
Contingencies 1,368,660 556,389 4 73,123 83,266
Salary Lapse ( 1,080,000) (1,080,000) - (1,080,000)
Miscellaneous Non-Departmental 544,033 1,166,033 1 ,162,341 3,692
Total Miscellaneous 3,871,193 3,524,922 4 ,392,335 (867,413)
Total Expenditures 120,829,826 1 20,195,710 118,283,611 1,912,099
Excess of Revenues Over Expenditures 1,424,642 3,304,032 6 ,001,054 2,697,022
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - 16,808 16,808
Insurance Proceeds - - 1 20,865 120,865
Transfers In From:
Impact Fees - School 1,320,000 1,320,000 7 50,000 (570,000)
Hotel Tax Fund - 388,473 3 88,473 -
Franchise Fee Fund - 129,714 1 29,714 -
Total Transfers In 1,320,000 1,838,187 1 ,268,187 (570,000)
Transfers Out To:
General Capital Projects Fund 1,561,482 3,361,482 3 ,361,482 -
Department of Aging 1,531,157 1,531,157 1 ,186,147 345,010
Department of Housing and Community Services 555,814 555,814 4 48,820 106,994
Community Partnerships 391,674 391,674 3 91,674 -
Impact Fees - Fire Companies/Contingencies - 80,797 80,796 1
Airport Enterprise Fund 25,000 25,000 25,000 -
Golf Course Enterprise Fund 265,997 265,997 1 25,601 140,396
Total Transfers Out 4,331,124 6,211,921 5 ,619,520 592,401
Total Other Financing (Uses) ( 3,011,124) (4,373,734) (4,213,660) 160,074
Net Increase (Decrease) in Fund Balance $ ( 1,586,482) $ (1,069,702) 1 ,787,394 $ 2,857,096
Fund Balance, July 1 2 1,196,849
Fund Balance, June 30 $ 22,984,243
-114-

-115-

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.
-116-

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.
-117-

NON-MAJOR GOVERNMENTAL FUNDS
Non-major governmental funds are special revenue funds, unless otherwise noted:
Department of Aging – This fund accounts for activities funded primarily by grants to provide services for
the elderly and is included in the social services function.
Housing and Community Services – This fund accounts for activities funded mostly by grants and
revolving loan funds that support housing rehabilitation and home-ownership and is included in the economic
and community development function.
Revolving Loan Fund – This fund accounts for activities funded by community donations and grants to
promote and provide economic development loans to local businesses and is included in the economic and
community development function.
Economic Development Incentive Fund – This fund accounts for activities funded with a portion of
recordation taxes that support economic development in the County by attracting and investing in new and
existing businesses and is included in the economic and community development function.
BRIDGE (Business Reinvestment and Infrastructure Development Grant Enterprise) Fund – This fund
accounts for activities funded with a portion of recordation taxes and provides new commercial businesses
funding for capital and infrastructure improvements. The BRIDGE Fund is included in the economic and
community development function.
Community Partnerships for Children – This fund accounts for activities funded by grants allocated to the
County that provide services for children and families and is included in the social services function.
Critical Areas – This fund accounts for activities funded by payments in lieu of performance bonds that
support efforts to mitigate and preserve critical areas along the shoreline of tidal waters within the County
and is included in the conservation of natural resources function.
Franchise Fee - This fund accounts for activities funded by cable TV franchise fees to support the local
County government TV channel and is included in the general government function.
Hotel Tax – This fund accounts for activities funded by the Hotel Tax that support economic development
and tourism and is included in the economic and community development function.
Law Library – This fund accounts for activities funded by court fees, fines, and contributions from local
attorneys to update legal reference materials housed in the courthouse and is included in the general
government function.
Sheriff’s Drug Task Force – This fund accounts for activities funded by drug-related forfeitures that support
drug interdiction efforts by a multi-faceted task force and is included in the public safety function.
Inmate Welfare Fund – This fund accounts for activities funded by profits earned from Detention Center
inmate-related services that promote the welfare of the inmates and is included in the public safety function.
Agricultural Transfer Tax – This fund accounts for activities funded primarily by the Agricultural Transfer
Tax to purchase agricultural easements that preclude development and is included in the conservation of
natural resources function.
-118-

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 Development Rights – This fund accounts for activities funded by Queen Anne’s County to
acquire easements to restrict the use of agricultural land and woodland and is included in the conservation of
natural resources function.
Dredging Special Assessments – This fund accounts for activities funded by special assessment funds
collected to repay loans for specific dredging and erosion projects that benefited Price’s Creek, Grove Creek,
and Narrows Pointe and is included in the conservation of natural resources function.
Kent Narrows – This fund accounts for activities funded by tax revenues to improve the Kent Narrows area
and is included in the economic and community development function.
Capital Projects – School Impact Fees – This fund accounts for financial resources generated by new
residential construction and used for the construction of public school facilities or payment of school debt
relating to such construction.
Capital Projects – Fire Company Impact Fees – This fund accounts for activities funded by impact fees
specifically earmarked to enhance local volunteer fire company preparedness resulting from new
construction and is included in the public safety function.
Capital Projects – Parks and Recreation Impact Fees – This fund accounts for activities funded by impact
fees specifically earmarked to enhance parks and recreation and is included in the parks and recreation
function.
-119-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2016
COMMUNITY
HOUSING AND ECONOMIC PARTNERSHIPS
DEPARTMENT COMMUNITY REVOLVING DEVELOPMENT BRIDGE FOR
OF AGING SERVICES LOAN FUND INCENTIVE FUND CHILDREN
ASSETS
Cash and Cash Equivalents $ 2 09,345 $ 1 ,178,902 $ 4 15,548 $ 1,133,559 $ 1,732,372 $ 7 09,943
Prepaid Items - - - - - -
Receivables
Taxes Receivable (Net) - - - - - -
Accounts Receivable (Net) - 7 ,249 9 ,647 - - 5 ,096
Loans Receivable - 4 ,910,365 1 34,514 - - -
Special Assessments (Net) - - - - - -
Due from Other Governments 1 54,002 8 4,840 - 65,508 65,508 1 54,968
Total Assets $ 3 63,347 $ 6 ,181,356 $ 5 59,709 $ 1,199,067 $ 1,797,880 $ 8 70,007
LIABILITIES
Accrued Liabilities $ 1 16,891 $ 3 1,760 $ - $ 368,500 $ - $ 3 19,418
Due to Other Funds 1 06,921 1 10,746 - - - -
Due to Other Governmental Agencies - 3 ,136 - - - 3 07,209
Unearned Revenue - 3 6,563 - - - 1 48,656
Total Liabilities 2 23,812 1 82,205 - 368,500 - 7 75,283
DEFERRED INFLOWS OF RESOURCES
Unavailable Benefit Assessments - - - - - -
Unavailable Fees - - - - - -
Total Deferred Inflows - - - - - -
Total Liabilities and Deferred Inflows 2 23,812 1 82,205 - 368,500 - 7 75,283
FUND BALANCES
Nonspendable - 4 ,910,365 1 44,161 - - -
Restricted 1 07 1 ,154,041 4 15,548 830,567 1,797,880 -
Assigned 1 39,428 - - - - 9 4,724
Unassigned - (65,255) - - - -
Total Fund Balances 1 39,535 5 ,999,151 5 59,709 830,567 1,797,880 9 4,724
Total Liabilities, Deferred Inflows and
Fund Balances $ 3 63,347 $ 6 ,181,356 $ 5 59,709 $ 1,199,067 $ 1,797,880 $ 8 70,007
-120-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2016
(CONTINUED)
SHERIFF'S
DRUG PURCHASE OF
CRITICAL FRANCHISE HOTEL LAW TASK INMATE AGRICULTURAL RURAL DEVELOPMENT
AREAS FEE TAX LIBRARY FORCE WELFARE TRANSFER LEGACY RIGHTS
$ 1 74,459 $ 1 4,985 $ - $ 1 73,339 $ 1 59,309 $ 252,217 $ 1 62,038 $ 4 21,363 $ 5 50
- - 7 ,491 - - - - - -
- - 6 5,900 - - - - - -
- - - - - 5,332 - - -
- - - - - - - - -
- - - - - - - - -
- - 2 0,632 5 ,637 - - - - -
$ 1 74,459 $ 1 4,985 $ 9 4,023 $ 1 78,976 $ 1 59,309 $ 257,549 $ 1 62,038 $ 4 21,363 $ 5 50
$ - $ 1 4,985 $ 2 6,091 $ 3 68 $ 9 1,071 $ 8,012 $ - $ - $ -
- - 6 0,441 - - - - - -
- - - - - 19,338 - - -
- - - - - - - - -
- 1 4,985 8 6,532 3 68 9 1,071 27,350 - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- 1 4,985 8 6,532 3 68 9 1,071 27,350 - - -
- - 7 ,491 - - - - - -
1 74,459 - - - 6 8,238 230,199 1 62,038 4 21,363 5 50
- - - 1 78,608 - - - - -
- - - - - - - - -
1 74,459 - 7 ,491 1 78,608 6 8,238 230,199 1 62,038 4 21,363 5 50
$ 1 74,459 $ 1 4,985 $ 9 4,023 $ 1 78,976 $ 1 59,309 $ 257,549 $ 1 62,038 $ 4 21,363 $ 5 50
CONTINUED
-121-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2016
(CONTINUED)
CAPITAL PROJECTS
DREDGING PARKS AND TOTAL
SPECIAL KENT SCHOOL FIRE COMPANY RECREATION NON-MAJOR
ASSESSMENTS NARROWS IMPACT FEES IMPACT FEES IMPACT FEES GOVERNMENTAL
ASSETS
Cash and Cash Equivalents $ 1 8,482 $ 299,979 $ 5 ,048,382 $ 3 15,199 $ 8 84,706 $ 1 3,304,677
Prepaid Items - - - - - 7 ,491
Receivables
Taxes Receivable (Net) - - - - - 6 5,900
Accounts Receivable (Net) 1 54 - - - - 2 7,478
Loans Receivable - - 1 ,067,575 1 22,251 1 07,874 6 ,342,579
Special Assessments (Net) 4 61,391 - - - - 4 61,391
Due from Other Governments - - - - - 5 51,095
Total Assets $ 4 80,027 $ 299,979 $ 6 ,115,957 $ 4 37,450 $ 9 92,580 $ 2 0,760,611
LIABILITIES
Accrued Liabilities $ - $ 35,000 $ - $ - $ - $ 1 ,012,096
Due to Other Funds - - - 4 9,874 - 3 27,982
Due to Other Governmental Agencies - - - - - 3 29,683
Unearned Revenue - - - - - 1 85,219
Total Liabilities - 35,000 - 4 9,874 - 1 ,854,980
DEFERRED INFLOWS OF RESOURCES
Unavailable Benefit Assessments 4 61,391 - - - - 4 61,391
Unavailable Fees - - 1 ,067,575 1 22,251 1 07,874 1 ,297,700
Total Deferred Inflows 4 61,391 - 1 ,067,575 1 22,251 1 07,874 1 ,759,091
Total Liabilities and Deferred Inflows 4 61,391 35,000 1 ,067,575 1 72,125 1 07,874 3 ,614,071
FUND BALANCES
Nonspendable - - - - - 5 ,062,017
Restricted 1 8,636 264,979 5 ,048,382 3 15,199 8 84,706 1 1,786,892
Assigned - - - - - 4 12,760
Unassigned - - - (49,874) - (115,129)
Total Fund Balances 1 8,636 264,979 5 ,048,382 2 65,325 8 84,706 1 7,146,540
Total Liabilities, Deferred Inflows and
Fund Balances $ 4 80,027 $ 299,979 $ 6 ,115,957 $ 4 37,450 $ 9 92,580 $ 2 0,760,611
-122-

-123-

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, 2016
COMMUNITY
HOUSING AND ECONOMIC PARTNERSHIPS
DEPARTMENT COMMUNITY REVOLVING DEVELOPMENT BRIDGE FOR
OF AGING SERVICES LOAN FUND INCENTIVE FUND CHILDREN
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ -
Recordation Taxes - 157,599 - 525,330 525,330 -
Hotel Taxes - - - - - -
State Shared Taxes - - - - - -
Licenses and Permits - - - - - -
Intergovernmental 964,815 230,862 - - - 655,228
Charges for Current Services 76,404 310,000 - - - -
Fines and Forfeitures - - - - - -
Investment Income 1 61 3,437 5,157 609 609 1 9
Donations 38,894 - - - - 3 ,241
Miscellaneous 35,330 7,000 2,919 - - 8 ,917
Total Revenues 1,115,604 708,898 8,076 525,939 525,939 667,405
EXPENDITURES
Current
General Government - - - - - -
Public Safety - - - - - -
Social Services 2,271,535 - - - - 1,064,208
Conservation of Natural Resources - - - - - -
Economic/Community Development - 885,474 - 1,265,013 - -
Debt Service
Principal - - - - - -
Total Expenditures 2,271,535 885,474 - 1,265,013 - 1,064,208
Excess of Revenues Over (Under) Expenditures ( 1,155,931) ( 176,576) 8,076 (739,074) 525,939 ( 396,803)
OTHER FINANCING SOURCES (USES)
Issuance of Debt - - - - - -
Insurance Proceeds 5 00 - - - - -
Transfers In 1,186,147 448,820 - - - 391,674
Transfers Out - - - - - -
Other Financing Sources (Uses) 1,186,647 448,820 - - - 391,674
Net Increase (Decrease) in Fund Balances 30,716 272,244 8,076 (739,074) 525,939 (5,129)
Fund Balances, July 1 108,819 5,726,907 551,633 1,569,641 1,271,941 99,853
Fund Balances, June 30 $ 139,535 $ 5,999,151 $ 559,709 $ 830,567 $ 1 ,797,880 $ 94,724
-124-

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, 2016
(CONTINUED)
SHERIFF'S
DRUG PURCHASE OF
CRITICAL FRANCHISE HOTEL LAW TASK INMATE AGRICULTURAL RURAL DEVELOPMENT
AREAS FEE TAX LIBRARY FORCE WELFARE TRANSFER LEGACY RIGHTS
$ - $ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - - -
- - 559,555 - - - - - -
- - - - - - 1 1,421 - -
- 453,574 - - - - - - -
- - 24,543 - - - - 555,233 -
10,428 3 ,800 - 15,853 - 113,911 - - -
- - - 62,379 45,725 - - - -
- - - 3 16 2 91 4 77 - 9 84 -
- - - - - - - - -
- - 23,756 - 4,200 27,833 - - -
10,428 457,374 607,854 78,548 50,216 142,221 1 1,421 556,217 -
- 379,845 - 3 ,119 - - - - -
- - - - 80,393 138,754 - - -
- - - - - - - - -
- - - - - - 128,910 555,233 -
- - 423,455 - - - - - -
- - - - - - - - -
- 379,845 423,455 3 ,119 80,393 138,754 128,910 555,233 -
10,428 7 7,529 184,399 75,429 (30,177) 3,467 (117,489) 9 84 -
- - - - - - - - -
- - - - - - - - -
- - - - - - 225,000 - -
- (129,714) (388,473) - - - - - -
- (129,714) (388,473) - - - 225,000 - -
10,428 (52,185) (204,074) 75,429 (30,177) 3,467 107,511 9 84 -
164,031 5 2,185 211,565 103,179 98,415 226,732 5 4,527 420,379 5 50
$ 174,459 $ - $ 7,491 $ 178,608 $ 68,238 $ 230,199 $ 162,038 $ 421,363 $ 5 50
CONTINUED
-125-

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, 2016
(CONTINUED)
CAPITAL PROJECTS
DREDGING PARKS AND TOTAL
SPECIAL KENT SCHOOL FIRE COMPANY RECREATION NON-MAJOR
ASSESSMENTS NARROWS IMPACT FEES IMPACT FEES IMPACT FEES GOVERNMENTAL
REVENUES
Taxes
Local Property Tax $ - $ 33,928 $ - $ - $ - $ 33,928
Recordation Taxes - - - - - 1,208,259
Hotel Taxes - - - - - 559,555
State Shared Taxes - - - - - 11,421
Licenses and Permits - - - - - 453,574
Intergovernmental - - - - - 2,430,681
Charges for Current Services 44,178 - 1,230,994 238,995 149,158 2,193,721
Fines and Forfeitures - - - - - 108,104
Investment Income 428 - 11,432 4 51 1,780 26,151
Donations - - - - - 42,135
Miscellaneous - - - - - 109,955
Total Revenues 44,606 3 3,928 1,242,426 239,446 150,938 7,177,484
EXPENDITURES
Current
General Government - - - - - 382,964
Public Safety - - - 294,765 - 513,912
Social Services - - - - - 3,335,743
Conservation of Natural Resources 509,776 - - - - 1,193,919
Economic/Community Development - 3 5,000 - - - 2,608,942
Debt Service
Principal 44,425 - - - - 44,425
Total Expenditures 554,201 3 5,000 - 294,765 - 8,079,905
Excess of Revenues Over (Under) Expenditures (509,595) (1,072) 1,242,426 (55,319) 150,938 ( 902,421)
OTHER FINANCING SOURCES (USES)
Issuance of Debt 509,776 - - - - 509,776
Insurance Proceeds - - - - - 5 00
Transfers In - - - 80,796 - 2,332,437
Transfers Out - - ( 750,000) - - ( 1,268,187)
Other Financing Sources (Uses) 509,776 - ( 750,000) 80,796 - 1,574,526
Net Increase (Decrease) in Fund Balances 181 (1,072) 492,426 25,477 150,938 672,105
Fund Balances, July 1 18,455 266,051 4,555,956 239,848 733,768 16,474,435
Fund Balances, June 30 $ 18,636 $ 264,979 $ 5,048,382 $ 265,325 $ 884,706 $ 17,146,540
-126-

-127-

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, 2016
DEPARTMENT OF AGING HOUSING AND COMMUNITY SERVICES
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - 150,000 150,000 157,599 7,599
Hotel Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Licenses and Permits - - - - - - - -
Intergovernmental 871,470 872,272 964,815 92,543 192,757 192,757 230,862 38,105
Charges for Current Services 6 4,600 64,600 76,404 11,804 100,000 310,000 310,000 -
Fines and Forfeitures - - - - - - - -
Investment Income - - 161 1 61 - - 3 ,437 3,437
Donations 3 5,000 35,000 38,894 3,894 - - - -
Miscellaneous 1 ,000 1,000 35,330 34,330 - - 7 ,000 7,000
Total Revenues 972,070 972,872 1 ,115,604 142,732 442,757 652,757 708,898 56,141
EXPENDITURES
Current Operating Expenditures 2,495,547 2 ,496,349 2 ,271,535 224,814 1,168,571 1,713,041 885,474 827,567
Capital Outlay 7 ,680 7,680 - 7,680 - - - -
Debt Service
Principal - - - - - - - -
Total Expenditures 2,503,227 2 ,504,029 2 ,271,535 232,494 1,168,571 1,713,041 885,474 827,567
Excess of Revenues Over (Under) Expenditures (1,531,157) (1,531,157) (1,155,931) 375,226 (725,814) (1,060,284) (176,576) 883,708
OTHER FINANCING SOURCES (USES)
Issuance of Debt - - - - - - - -
Insurance Proceeds - - 500 5 00 - - - -
Transfers In 1,531,157 1 ,531,157 1 ,186,147 (345,010) 555,814 555,814 448,820 (106,994)
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) 1,531,157 1 ,531,157 1 ,186,647 (344,510) 555,814 555,814 448,820 (106,994)
Net Increase (Decrease) in Fund Balances $ - $ - 30,716 $ 30,716 $ (170,000) $ (504,470) 272,244 $ 776,714
Fund Balances, July 1 108,819 5,726,907
Fund Balances, June 30 $ 1 39,535 $ 5,999,151
-128-

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, 2016
(CONTINUED)
ECONOMIC DEVELOPMENT INCENTIVE BRIDGE FUND
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ -
466,025 525,025 525,330 3 05 466,025 466,025 525,330 5 9,305
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - 6 09 6 09 - - 6 09 6 09
- - - - - - - -
- - - - - - - -
466,025 525,025 525,939 9 14 466,025 466,025 525,939 5 9,914
466,025 1 ,266,025 1,265,013 1 ,012 466,025 466,025 - 466,025
- - - - - - - -
- - - - - - - -
466,025 1 ,266,025 1,265,013 1 ,012 466,025 466,025 - 466,025
- (741,000) (739,074) 1 ,926 - - 525,939 525,939
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
$ - $ (741,000) (739,074) $ 1 ,926 $ - $ - 525,939 $ 525,939
1,569,641 1,271,941
$ 830,567 $ 1,797,880
CONTINUED
-129-

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, 2016
(CONTINUED)
COMMUNITY PARTNERSHIPS FOR CHILDREN FRANCHISE FEE
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
Hotel Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Licenses and Permits - - - - 400,000 400,000 453,574 5 3,574
Intergovernmental 883,258 656,658 6 55,228 (1,430) - - - -
Charges for Current Services - - - - - - 3,800 3 ,800
Fines and Forfeitures - - - - - - - -
Investment Income - - 19 19 - - - -
Donations - - 3,241 3,241 - - - -
Miscellaneous - 19,300 8,917 (10,383) - - - -
Total Revenues 883,258 675,958 6 67,405 (8,553) 400,000 400,000 457,374 5 7,374
EXPENDITURES
Current Operating Expenditures 1,274,932 1,067,632 1 ,064,208 3,424 397,500 397,500 379,845 1 7,655
Capital Outlay - - - - 2 ,500 2,500 - 2 ,500
Debt Service
Principal - - - - - - - -
Total Expenditures 1,274,932 1,067,632 1 ,064,208 3,424 400,000 400,000 379,845 2 0,155
Excess of Revenues Over (Under) Expenditures (391,674) ( 391,674) (396,803) (5,129) - - 77,529 7 7,529
OTHER FINANCING SOURCES (USES)
Issuance of Debt - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In 391,674 391,674 3 91,674 - - - - -
Transfers Out - - - - - (129,714) (129,714) -
Total Other Financing Sources (Uses) 391,674 391,674 3 91,674 - - (129,714) (129,714) -
Net Increase (Decrease) in Fund Balances $ - $ - (5,129) $ (5,129) $ - $ (129,714) (52,185) $ 77,529
Fund Balances, July 1 9 9,853 52,185
Fund Balances, June 30 $ 9 4,724 $ -
-130-

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, 2016
(CONTINUED)
HOTEL TAX LAW LIBRARY
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
520,000 520,000 559,555 3 9,555 - - - -
- - - - - - - -
- - - - - - - -
- 20,632 24,543 3 ,911 - - - -
- - - - 1 0,000 10,000 15,853 5,853
- - - - 1 5,500 15,500 62,379 46,879
- - - - - - 316 316
- - - - - - - -
- - 23,756 2 3,756 - - - -
520,000 540,632 607,854 6 7,222 2 5,500 25,500 78,548 53,048
520,000 540,632 423,455 117,177 2 5,500 25,500 3,119 22,381
- - - - - - - -
- - - - - - - -
520,000 540,632 423,455 117,177 2 5,500 25,500 3,119 22,381
- - 184,399 184,399 - - 75,429 75,429
- - - - - - - -
- - - - - - - -
- - - - - - - -
- (388,473) (388,473) - - - - -
- (388,473) (388,473) - - - - -
$ - $ (388,473) (204,074) $ 184,399 $ - $ - 75,429 $ 75,429
211,565 103,179
$ 7,491 $ 178,608
CONTINUED
-131-

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, 2016
(CONTINUED)
INMATE WELFARE AGRICULTURAL TRANSFER
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
Hotel Taxes - - - - - - - -
State Shared Taxes - - - - 4 0,000 4 0,000 11,421 (28,579)
Licenses and Permits - - - - - - - -
Intergovernmental - - - - - - - -
Charges for Current Services 1 20,000 120,000 113,911 (6,089) - - - -
Fines and Forfeitures - - - - - - - -
Investment Income - - 4 77 4 77 - - - -
Donations - - - - - - - -
Miscellaneous 3 0,000 30,000 2 7,833 (2,167) - - - -
Total Revenues 1 50,000 150,000 142,221 (7,779) 4 0,000 4 0,000 11,421 (28,579)
EXPENDITURES
Current Operating Expenditures 1 35,400 135,400 138,754 (3,354) 4 0,000 2 78,000 128,910 1 49,090
Capital Outlay 1 4,600 14,600 - 14,600 - - - -
Debt Service
Principal - - - - - - - -
Total Expenditures 1 50,000 150,000 138,754 11,246 4 0,000 2 78,000 128,910 1 49,090
Excess of Revenues Over (Under) Expenditures - - 3 ,467 3,467 - (238,000) ( 117,489) 1 20,511
OTHER FINANCING SOURCES (USES)
Issuance of Debt - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In - - - - - 2 25,000 225,000 -
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) - - - - - 2 25,000 225,000 -
Net Increase (Decrease) in Fund Balances $ - $ - 3 ,467 $ 3,467 $ - $ (13,000) 107,511 $ 1 20,511
Fund Balances, July 1 226,732 54,527
Fund Balances, June 30 $ 230,199 $ 162,038
-132-

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, 2016
(CONTINUED)
RURAL LEGACY DREDGING SPECIAL ASSESSMENTS
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- 555,233 555,233 - - - - -
- - - - 4 4,425 4 4,425 4 4,178 (247)
- - 9 84 9 84 - - - -
- - - - - - 4 28 4 28
- - - - - - - -
- - - - - - - -
- 555,233 556,217 9 84 4 4,425 4 4,425 4 4,606 1 81
- 555,233 555,233 - - 509,776 509,776 -
- - - - - - - -
- - - - 4 4,425 4 4,425 4 4,425 -
- 555,233 555,233 - 4 4,425 554,201 554,201 -
- - 9 84 9 84 - (509,776) (509,595) 1 81
- - - - - 509,776 509,776 -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - 509,776 509,776 -
$ - $ - 9 84 $ 9 84 $ - $ - 1 81 $ 1 81
420,379 1 8,455
$ 421,363 $ 18,636
CONTINUED
-133-

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, 2016
(CONTINUED)
KENT NARROWS CAPITAL PROJECTS - SCHOOL IMPACT FEES
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ 38,000 $ 3 8,000 $ 33,928 $ ( 4,072) $ - $ - $ - $ -
Recordation Taxes - - - - - - - -
Hotel Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Licenses and Permits - - - - - - - -
Intergovernmental - - - - - - - -
Charges for Current Services - - - - 1,235,000 1,235,000 1,230,994 (4,006)
Fines and Forfeitures - - - - - - - -
Investment Income - - - - - - 11,432 11,432
Donations - - - - - - - -
Miscellaneous - - - - - - - -
Total Revenues 38,000 3 8,000 33,928 ( 4,072) 1,235,000 1,235,000 1,242,426 7,426
EXPENDITURES
Current Operating Expenditures 38,000 3 8,000 35,000 3,000 - - - -
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Total Expenditures 38,000 3 8,000 35,000 3,000 - - - -
Excess of Revenues Over (Under) Expenditures - - ( 1,072) ( 1,072) 1,235,000 1,235,000 1,242,426 7,426
OTHER FINANCING SOURCES (USES)
Issuance of Debt - - - - - - - -
Insurance Proceeds - - - - - - - -
Transfers In - - - - - - - -
Transfers Out - - - - (1,235,000) (1,235,000) (750,000) 485,000
Total Other Financing Sources (Uses) - - - - (1,235,000) (1,235,000) (750,000) 485,000
Net Increase (Decrease) in Fund Balances $ - $ - ( 1,072) $ ( 1,072) $ - $ - 492,426 $ 492,426
Fund Balances, July 1 266,051 4,555,956
Fund Balances, June 30 $ 264,979 $ 5,048,382
-134-

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, 2016
(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)
$ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
200,000 200,000 238,995 38,995 120,000 120,000 149,158 29,158
- - - - - - - -
500 500 451 (49) 400 400 1,780 1,380
- - - - - - - -
- - - - - - - -
200,500 200,500 239,446 38,946 120,400 120,400 150,938 30,538
200,500 294,765 294,765 - - - - -
- - - - - - - -
- - - - - - - -
200,500 294,765 294,765 - - - - -
- ( 94,265) ( 55,319) 38,946 120,400 120,400 150,938 30,538
- - - - - - - -
- - - - - - - -
- 80,797 80,796 (1) - - - -
- - - - ( 120,400) ( 120,400) - 120,400
- 80,797 80,796 (1) ( 120,400) ( 120,400) - 120,400
$ - $ ( 13,468) 25,477 $ 38,945 $ - $ - 150,938 $ 150,938
239,848 733,768
$ 265,325 $ 884,706
-135-

-136-

NON-MAJOR ENTERPRISE FUNDS
Non-Major Enterprise funds account for activities which are commercial in nature and are primarily or
partially intended to be self-supporting. Each fund sets its rates and service charges at a level sufficient to:
(1) meet all of its operating expenses; (2) provide for depreciation from wear and obsolescence of capital
assets; and (3) to the extent that funds are not borrowed, finance the cost of expansion of physical facilities.
-137-

NON-MAJOR ENTERPRISE FUNDS
Non-major enterprise funds include the following funds:
Blue Heron Golf Course – This fund accounts for operation and maintenance of an 18-hole public golf
course that is owned and operated by the County.
Public Landings and Marinas – This fund accounts for operation, maintenance, and major repairs of
public landings, bulkheads, and public marinas. For a fee, the general public has access to these landings to
launch small craft into the many waterways that surround the County and can also access the marinas for
temporary mooring.
-138-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2016
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
ASSETS COURSE AND MARINAS ENTERPRISE
Current Assets
Equity in Pooled Cash $ - $ 816,069 $ 816,069
Accounts Receivable (Net) - 10,861 10,861
Due from Other Governments - 24,309 24,309
Bond Interest Reimbursement Receivable - Build America Bond - 3,121 3,121
Inventories 7,952 - 7,952
Total Current Assets 7,952 854,360 862,312
Capital Assets
Land, Improved and Unimproved 1,904,522 769,110 2,673,632
Buildings and Improvements to Buildings 313,443 - 313,443
Improvements Other Than Buildings 122,268 5,343,459 5,465,727
Automotive Equipment - 63,690 63,690
Equipment 368,222 56,814 425,036
Furniture and Fixtures - 4,979 4,979
Construction in Progress 112,252 - 112,252
Capital Assets before Depreciation 2,820,707 6,238,052 9,058,759
Less Accumulated Depreciation (592,588) (918,044) ( 1,510,632)
Total Capital Assets, Net of Accumulated
Depreciation 2,228,119 5,320,008 7,548,127
Total Noncurrent Assets 2,228,119 5,320,008 7,548,127
Total Assets 2,236,071 6,174,368 8,410,439
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflow for Pension contributions 14,331 28,841 43,172
Deferred Charge on Refunding 23,554 1,616 25,170
Total Deferred Outflows of Resources 37,885 30,457 68,342
LIABILITIES
Current Liabilities
Accounts Payable 29,822 17,076 46,898
Accrued Interest Payable 2,859 10,864 13,723
Due to Other Funds 432,806 - 432,806
Unearned Revenue 2,455 - 2,455
Current Portion of Compensated Absences 6,581 16,336 22,917
Current Portion of Bonds/Notes Payable 135,953 49,025 184,978
Total Current Liabilities 610,476 93,301 703,777
Noncurrent Liabilities
Compensated Absences 4,298 10,669 14,967
Other Post-Employment Benefit Obligation - 250,670 250,670
Net Pension Liability 56,225 113,833 170,058
Bonds/Notes Payable 329,526 837,983 1,167,509
Total Noncurrent Liabilities 390,049 1,213,155 1,603,204
Total Liabilities 1,000,525 1,306,456 2,306,981
DEFERRED INFLOWS OF RESOURCES
Deferred Inflow for Pension contributions 4,630 9,255 13,885
Total Deferred Inflows of Resources 4,630 9,255 13,885
NET POSITION
Net Investment in Capital Assets 1,786,194 4,434,616 6,220,810
Unrestricted Amounts (517,393) 454,498 ( 62,895)
Total Net Position $ 1,268,801 $ 4,889,114 $ 6,157,915
-139-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2016
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
COURSE AND MARINAS ENTERPRISE
OPERATING REVENUES
Charges for Services $ 3 05,528 $ 423,427 $ 728,955
Intergovernmental - 24,309 24,309
Bond Interest Reimbursement - Build America Bond - 12,472 12,472
Material Sales 4 5,020 - 45,020
Miscellaneous Revenues 2 ,320 17,115 19,435
Total Operating Revenues 3 52,868 477,323 830,191
OPERATING EXPENSES
Cost of Sales and Services
Recreation 4 47,101 337,941 785,042
Other Post-Employment Benefit Contributions - 20,941 20,941
Pension Liability Adjustment 6 ,421 14,088 20,509
Depreciation 3 1,652 113,819 145,471
Total Operating Expenses 4 85,174 486,789 971,963
Operating (Loss) (132,306) (9,466) (141,772)
NON-OPERATING REVENUES (EXPENSES)
Interest Expense (20,400) (43,154) (63,554)
Gain on Disposal of Capital Assets 4 89 - 489
Total Non-Operating (Expenses) (19,911) (43,154) (63,065)
(Loss) Before Contributions and Transfers (152,217) (52,620) (204,837)
Transfers In 1 52,217 - 152,217
Change in Net Position - (52,620) (52,620)
Total Net Position - Beginning of Year 1 ,268,801 4,941,734 6,210,535
Total Net Position - End of Year $ 1 ,268,801 $ 4,889,114 $ 6,157,915
-140-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2016
PUBLIC TOTAL
GOLF LANDINGS NON-MAJOR
COURSE AND MARINAS ENTERPRISE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 305,509 $ 413,438 $ 7 18,947
Receipts from other operating revenues 47,340 37,016 84,356
Receipts from Build America Bond interest reimbursement - 12,572 12,572
Payments to suppliers (306,944) ( 120,544) (427,488)
Payments to employees and on behalf of employees (122,951) ( 225,669) (348,620)
Net Cash Provided (Used) by Operating Activities (77,046) 116,813 39,767
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds 152,217 - 1 52,217
Loan proceeds from interfund loans 432,806 - 4 32,806
Principal paid on interfund loans (396,254) - (396,254)
Net Cash Provided by Noncapital Financing Activities 188,769 - 1 88,769
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from the disposition of capital assets 489 - 489
Principal paid on capital debt (441,075) ( 47,047) (488,122)
Proceeds from the sale of bonds 85,636 - 85,636
Proceeds from refunding of long term debt 339,062 - 3 39,062
Premium on sale of bonds 33,868 - 33,868
Interest paid on capital debt (22,991) ( 43,458) (66,449)
Acquisition and Construction of Capital Assets (106,712) ( 17,259) (123,971)
Net Cash (Used) by Capital and Related Financing Activities (111,723) ( 107,764) (219,487)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income - - -
Net Cash Provided (Used) by Investing Activities - - -
Net increase in cash and cash equivalents - 9,049 9,049
Balances - Beginning of year - 807,020 8 07,020
Balances - End of year $ - $ 816,069 $ 8 16,069
Reconciliation of operating (loss) to net cash
provided (used) by operating activities
Operating (loss) $ (132,306) $ ( 9,466) $ (141,772)
Adjustments to reconcile operating (loss)
to net cash provided (used) by operating activities:
Depreciation 31,652 113,819 1 45,471
Changes in assets and liabilities:
Accounts receivable, net - (9,989) (9,989)
Operating grants receivable - (4,408) (4,408)
Build America Bonds Interest receivable - 100 100
Inventories and Prepaid Expenses (1,145) - (1,145)
Vendor accounts payable 16,489 (9,506) 6,983
Compensated absences 1,862 1,234 3,096
Other Post-Employment Benefit Obligation - 20,941 20,941
Net Pension Liability 6,421 14,088 20,509
Deferred revenue collected in advance (19) - ( 19)
Net Cash Provided (Used) by Operating Activities $ (77,046) $ 116,813 $ 39,767
Noncash investing, capital and financing activities:
Donation of capital assets (infrastructure) by developers $ - $ - $ -
-141-

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.
-142-

OTHER POST-EMPLOYMENT BENEFIT (OPEB) TRUST FUND
The County established a Trust entity, entitled “Other Post-Employment Benefit Trust – County
Commissioners of Queen Anne's County, County Commissioners of Kent County, and Participating
Agencies” (OPEB Trust), to accumulate resources and account for and report retiree benefit plans for the
participating agencies.
Participating agencies in the OPEB Trust Fund are as follows:
Queen Anne's County
Queen Anne's County Board of Education
Queen Anne’s County Library
Kent County
AGENCY FUNDS
Agency funds are as follows:
Tax Ditch – This fund accounts for special taxing district revenues that are used to maintain drainage
ditches located in parts of the County.
Zoning Deposits – This fund accounts for performance deposits required under various sections of the
Zoning Ordinance.
State and Town Tax Collections – This fund accounts for collections received by the County on behalf of
the State of Maryland and incorporated towns located within the County. These taxes are collected by the
County along with County taxes and are then remitted to the proper jurisdiction.
Motor Vehicle Administration Deposits – This fund accounts for funds collected by the County for State
vehicle registration fees.
Escheat – Abandoned Property – This fund accounts for stale-dated County payroll and disbursements
checks that are voided by the County and remitted to the State after three years as abandoned property. In
accordance with State statutes, these funds are available to be claimed by the original payee or they revert
to the State.
-143-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF FIDUCIARY NET POSITION
OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
JUNE 30, 2016
QUEEN ANNE'S TOTAL
COUNTY QUEEN ANNE'S OPEB
QUEEN ANNE'S BOARD OF COUNTY KENT TRUST
COUNTY EDUCATION LIBRARY COUNTY FUND
ASSETS
Cash and Cash Equivalents $ 2 ,804,433 $ 506,559 $ 3 0,393 $ 1 57,033 $ 3 ,498,418
Total Assets 2 ,804,433 506,559 3 0,393 1 57,033 3 ,498,418
LIABILITIES
Due to Other Governments - - - 1 57,033 1 57,033
Total Liabilities - - - 1 57,033 1 57,033
NET POSITION HELD IN TRUST $ 2 ,804,433 $ 506,559 $ 3 0,393 $ - $ 3 ,341,385
-144-

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2016
QUEEN ANNE'S TOTAL
COUNTY QUEEN ANNE'S OPEB
QUEEN ANNE'S BOARD OF COUNTY TRUST
COUNTY EDUCATION LIBRARY FUND
ADDITIONS
Contributions
Employers $ 2 ,121,316 $ 1,753,599 $ 20,100 $ 3 ,895,015
Members 3 20,397 748,072 - 1 ,068,469
Total Contributions 2 ,441,713 2,501,671 20,100 4 ,963,484
Investment Income 6,799 7 71 4 6 7 ,616
Total Additions 2 ,448,512 2,502,442 20,146 4 ,971,100
DEDUCTIONS
Claims Paid 1 ,603,714 2,501,671 20,100 4 ,125,485
Miscellaneous Fees 5 - - 5
Total Deductions 1 ,603,719 2,501,671 20,100 4 ,125,490
Change in Assets 8 44,793 7 71 4 6 8 45,610
NET POSITION HELD IN TRUST
Net Position - Beginning of Year 1 ,959,640 505,788 30,347 2,495,775
Net Position - End of Year $ 2,804,433 $ 506,559 $ 30,393 $ 3,341,385
-145-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ASSETS AND LIABILITIES
AGENCY FUNDS
JUNE 30, 2016
STATE MOTOR
TAX & TOWN VEHICLE ESCHEAT - TOTAL
DITCH ZONING TAX ADMIN ABANDONED AGENCY
FUND DEPOSITS COLLECTIONS DEPOSITS PROPERTY FUNDS
ASSETS
Cash and Cash Equivalents $ 1 29,191 $ 272,048 $ 1 86,649 $ 1 5,459 $ 12,682 $ 616,029
Total Assets $ 1 29,191 $ 272,048 $ 1 86,649 $ 1 5,459 $ 12,682 $ 616,029
LIABILITIES
Due to Other Governments $ 6 ,234 $ - $ 1 86,649 $ 1 5,459 $ 12,682 $ 221,024
Deposits and Escrows 1 22,957 272,048 - - - 3 95,005
Total Liabilities $ 1 29,191 $ 272,048 $ 1 86,649 $ 1 5,459 $ 12,682 $ 616,029
-147-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2016
Cash and Miscellaneous Total
Cash Equivalents Receivables Assets
TAX DITCH FUND
Balance 7-1-15 $ 134,778 $ - $ 134,778
Additions 29,624 - 29,624
Deductions (35,211) - (35,211)
Balance 6-30-16 $ 129,191 $ - $ 129,191
ZONING DEPOSITS
Balance 7-1-15 $ 253,820 $ - $ 253,820
Additions 37,442 - 37,442
Deductions (19,214) - (19,214)
Balance 6-30-16 $ 272,048 $ - $ 272,048
STATE AND TOWN TAX COLLECTIONS
Balance 7-1-15 $ 26,057 $ - $ 26,057
Additions 12,304,946 - 12,304,946
Deductions (12,144,354) - (12,144,354)
Balance 6-30-16 $ 186,649 $ - $ 186,649
MOTOR VEHICLE ADMIN DEPOSITS
Balance 7-1-15 $ 10,837 $ - $ 10,837
Additions 314,399 - 314,399
Deductions (309,777) - (309,777)
Balance 6-30-16 $ 15,459 $ - $ 15,459
ESCHEAT - ABANDONED PROPERTY
Balance 7-1-15 $ 4,359 $ - $ 4,359
Additions 12,682 - 12,682
Deductions (4,359) - (4,359)
Balance 6-30-16 $ 12,682 $ - $ 12,682
TOTAL AGENCY FUNDS
Balance 7-1-15 $ 429,851 $ - $ 429,851
Additions 12,699,093 - 12,699,093
Deductions (12,512,915) - (12,512,915)
Balance 6-30-16 $ 616,029 $ - $ 616,029
-148-

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2016
(CONTINUED)
Due to Accrued Liabilities
Other and Total
Governments Deposits and Escrows Liabilities
$ - $ 134,778 $ 134,778
6,234 23,390 29,624
- (35,211) (35,211)
$ 6,234 $ 122,957 $ 129,191
$ - $ 253,820 $ 253,820
- 37,442 37,442
- (19,214) (19,214)
$ - $ 272,048 $ 272,048
$ 26,057 $ - $ 26,057
12,304,946 - 12,304,946
(12,144,354) - (12,144,354)
$ 186,649 $ - $ 186,649
$ 10,837 $ - $ 10,837
313,993 - 313,993
(309,371) - (309,371)
$ 15,459 $ - $ 15,459
$ 4,359 $ - $ 4,359
12,682 - 12,682
(4,359) - (4,359)
$ 12,682 $ - $ 12,682
$ 41,253 $ 388,598 $ 429,851
12,637,855 60,832 12,698,687
(12,458,084) (54,425) (12,512,509)
$ 221,024 $ 395,005 $ 616,029
-149-

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.
-151-

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
COMBINING BALANCE SHEETS
BY GRANTOR
JUNE 30, 2016 (with Summarized Totals as of June 30, 2015)
Fed/State Federal
GOCCP Family State
Admin GOC Support Ctr OTHER
ASSETS
Cash and cash equivalents $ 70,221 $ 5 71,190 $ 4,131 $ 33,908
Accounts receivable - 5 ,096 - -
Due from State governmental agencies 11,050 1 43,918 - -
Total Assets $ 81,271 $ 7 20,204 $ 4,131 $ 33,908
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued expenditures $ 13,686 $ 3 05,732 $ - $ -
Due to State governmental agencies 2,175 2 66,995 4,131 33,908
Unearned revenue 3,000 1 45,656 - -
Total Liabilities 18,861 7 18,383 4,131 33,908
FUND BALANCES
Assigned 62,410 1 ,821 - -
Total Fund Balances 62,410 1 ,821 - -
Total Liabilities and Fund Balances $ 81,271 $ 7 20,204 $ 4,131 $ 33,908
-152-

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
COMBINING BALANCE SHEETS
BY GRANTOR
JUNE 30, 2016 (with Summarized Totals as of June 30, 2015)
(CONTINUED)
Total Returned 2015
Community Reinvestment 2016 Summarized
Partnerships Fund Total Total
$ 679,450 $ 30,493 $ 709,943 $ 5 50,859
5,096 - 5,096 1 6,656
154,968 - 154,968 1 64,381
$ 839,514 $ 30,493 $ 870,007 $ 7 31,896
$ 319,418 $ - $ 319,418 $ 1 80,608
307,209 - 307,209 3 05,779
148,656 - 148,656 1 45,656
775,283 - 775,283 6 32,043
64,231 30,493 94,724 9 9,853
64,231 30,493 94,724 9 9,853
$ 839,514 $ 30,493 $ 870,007 $ 7 31,896
-153-

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, 2016 (with Summarized Totals for the Year Ended June 30, 2015)
Federal/State GOCCP/GOC
Healthy MD
CASA Resource Chesapeake Fam/Home Family After School
Administrative Start Promotion Helps Visiting Navigators Opportunity
REVENUES
CPA
Intergovernmental
GOC $ 65,000 $ 58,257 $ 9 ,509 $ 28,934 $ 5 7,616 $ 33,965 $ 52,215
Subtotal CPA 65,000 58,257 9 ,509 28,934 5 7,616 33,965 52,215
Non-CPA
Intergovernmental
GOC - non-CPA 25,000 - - - - - -
Other State Grant Funding - - - - 2 96,372 - -
Investment Income - - - - - - -
Earned Reinvestment Donations - - - - - - -
Miscellaneous - - - - - - -
Subtotal Non-CPA 25,000 - - - 2 96,372 - -
Total Revenues 90,000 58,257 9 ,509 28,934 3 53,988 33,965 52,215
EXPENDITURES
CPA
Program Contracted Services - - 9 ,509 28,934 - 33,965 52,215
Other Expenditures
Salaries 59,995 - - - - - -
Fringe Benefit Costs 4,005 - - - - - -
Board's Expenditures 1,000 - - - - - -
Other Charges - 58,257 - - 5 7,616 - -
Subtotal CPA Expenditures 65,000 58,257 9 ,509 28,934 5 7,616 33,965 52,215
Non-CPA
Program Contracted Services - - - - 2 96,372 - -
Other Expenditures
Salaries 90,118 - - - - - -
Fringe Benefit Costs 59,609 - - - - - -
Auditing 2,988 - - - - - -
Consultants 24,980 - - - - - -
Equipment Rental 3,589 - - - - - -
Postage 440 - - - - - -
Office Supplies 1,774 - - - - - -
Equipment Operation - - - - - - -
Business Travel 419 - - - - - -
Training 1,702 - - - - - -
Board's Expenditures 4,213 - - - - - -
Marketing/Promotions - - - - - - -
Communications 2,066 - - - - - -
Other Charges - - - - - - -
Local Allocation - - - - - - 225,890
Subtotal Non-CPA Expenditures 191,898 - - - 2 96,372 - 225,890
Total Expenditures 256,898 58,257 9 ,509 28,934 3 53,988 33,965 278,105
Excess of Revenues (Under) Expenditures (166,898) - - - - - (225,890)
OTHER FINANCING SOURCES
Proceeds on Sale of Capital Assets - - - - - - -
Transfers In for:
Program Contracted Services 161,750 - - - - - 225,890
Other Financing Sources 161,750 - - - - - 225,890
Net Increase (Decrease) in Fund Balances $ (5,148) $ - $ - $ - $ - $ - $ -
Fund Balances, July 1
Fund Balances, June 30
-154-

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, 2016 (with Summarized Totals for the Year Ended June 30, 2015)
(CONTINUED)
Federal/State GOCCP/GOC State Federal
GOCCP/GOC State GOC GOCCP GOCCP
Character Operating Fund All Programs CPA Non-CPA Non-CPA Youth
Counts Total Subtotal Subtotal Subtotal Subtotal Strategies
$ 2 8,360 $ 268,856 $ 333,856 $ 333,856 $ - $ - $ -
2 8,360 268,856 333,856 333,856 - - -
- - 25,000 - 25,000 - -
- 296,372 296,372 - - - -
- - - - - - -
3 ,241 3,241 3,241 - - - -
8 ,917 8,917 8,917 - - - -
1 2,158 308,530 333,530 - 25,000 - -
4 0,518 577,386 667,386 333,856 25,000 - -
- 124,623 124,623 124,623 - - -
2 8,360 28,360 88,355 88,355 - - -
- - 4,005 4,005 - - -
- - 1,000 1,000 - - -
- 115,873 115,873 115,873 - - -
2 8,360 268,856 333,856 333,856 - - -
- 296,372 296,372 - - - -
8 ,456 8,456 98,574 - - - -
6 ,016 6,016 65,625 - - - -
- - 2,988 - - - -
- - 24,980 - 24,980 - -
- - 3,589 - - - -
- - 440 - - - -
- - 1,774 - 20 - -
- - - - - - -
- - 419 - - - -
- - 1,702 - - - -
- - 4,213 - - - -
1 ,720 1,720 1,720 - - - -
- - 2,066 - - - -
- - - - - - -
- 225,890 225,890 - - - -
1 6,192 538,454 730,352 - 25,000 - -
4 4,552 807,310 1,064,208 333,856 25,000 - -
(4,034) (229,924) (396,822) - - - -
- - - - - - -
4 ,034 229,924 391,674 - - - -
4 ,034 229,924 391,674 - - - -
$ - $ - (5,148) - - - -
69,379 606,662 (5,612) 3,491 (25,479)
$ 64,231 $ 606,662 $ (5,612) $ 3,491 $ (25,479)
CONTINUED
-155-

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, 2016 (with Summarized Totals for the Year Ended June 30, 2015)
(CONTINUED)
Total
Other Community Returned 2015
Non-CPA Partnerships Reinvestment 2016 Summarized
State Grants Other Operating Funds Fund Total Total
REVENUES
CPA
Intergovernmental
GOC $ - $ - $ 3 33,856 $ - $ 3 33,856 $ 583,736
Subtotal CPA - - 3 33,856 - 3 33,856 583,736
Non-CPA
Intergovernmental
GOC - non-CPA - - 2 5,000 - 2 5,000 10,000
Other State Grant Funding 2 96,372 - 2 96,372 - 2 96,372 296,372
Investment Income - - - 1 9 1 9 22
Earned Reinvestment Donations - 3 ,241 3 ,241 - 3 ,241 -
Miscellaneous - 8 ,917 8 ,917 - 8 ,917 6,283
Subtotal Non-CPA 2 96,372 1 2,158 3 33,530 1 9 3 33,549 312,677
Total Revenues 2 96,372 1 2,158 6 67,386 1 9 6 67,405 896,413
EXPENDITURES
CPA
Program Contracted Services - - 1 24,623 - 1 24,623 373,782
Other Expenditures
Salaries - - 8 8,355 - 8 8,355 88,355
Fringe Benefit Costs - - 4 ,005 - 4 ,005 5,005
Board's Expenditures - - 1 ,000 - 1 ,000 -
Other Charges - - 1 15,873 - 1 15,873 116,594
Subtotal CPA Expenditures - - 3 33,856 - 3 33,856 583,736
Non-CPA
Program Contracted Services 2 96,372 - 2 96,372 - 2 96,372 325,160
Other Expenditures
Salaries - 9 8,574 9 8,574 - 9 8,574 97,516
Fringe Benefit Costs - 6 5,625 6 5,625 - 6 5,625 64,739
Auditing - 2 ,988 2 ,988 - 2 ,988 -
Consultants - - 2 4,980 - 2 4,980 -
Equipment Rental - 3 ,589 3 ,589 - 3 ,589 3,338
Postage - 4 40 4 40 - 4 40 290
Office Supplies - 1 ,754 1 ,774 - 1 ,774 1,326
Equipment Operation - - - - - 65
Business Travel - 4 19 4 19 - 4 19 375
Training - 1 ,702 1 ,702 - 1 ,702 250
Board's Expenditures - 4 ,213 4 ,213 - 4 ,213 5,117
Marketing/Promotions - 1 ,720 1 ,720 - 1 ,720 159
Communications - 2 ,066 2 ,066 - 2 ,066 1,812
Other Charges - - - - - 6,530
Local Allocation - 2 25,890 2 25,890 - 2 25,890 -
Subtotal Non-CPA Expenditures 2 96,372 4 08,980 7 30,352 - 7 30,352 506,677
Total Expenditures 2 96,372 4 08,980 1 ,064,208 - 1 ,064,208 1,090,413
Excess of Revenues (Under) Expenditures - (396,822) (396,822) 1 9 (396,803) (194,000)
OTHER FINANCING SOURCES
Proceeds on Sale of Capital Assets - - - - - 817
Transfers In for:
Program Contracted Services - 3 91,674 3 91,674 - 3 91,674 167,102
Other Financing Sources - 3 91,674 3 91,674 - 3 91,674 167,919
Net Increase (Decrease) in Fund Balances - (5,148) (5,148) 1 9 (5,129) (26,081)
Fund Balances, July 1 - (509,683) 6 9,379 3 0,474 9 9,853 125,934
Fund Balances, June 30 $ - $ (514,831) $ 6 4,231 $ 3 0,493 $ 9 4,724 $ 99,853
-156-

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

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, 2016
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 $ 586,886 $ 360,286 $ 358,856 $ (1,430) $ - $ - $ - $ -
Other 296,372 296,372 296,372 - - - - -
Investment Income - - - - - - 19 19
Donations - - 3,241 3,241 - - - -
Miscellaneous - 19,300 8,917 (10,383) - - - -
Total Revenues 883,258 675,958 667,386 (8,572) - - 19 19
EXPENDITURES
Program Contracted Services 732,282 480,682 420,995 59,687 - - - -
Other Expenditures
Salaries 170,696 186,812 186,929 (117) - - - -
Fringe Benefit Costs 68,778 71,962 69,630 2,332 - - - -
Auditing 2,988 2,988 2,988 - - - - -
Consultants - 25,000 24,980 20 - - - -
Equipment Rental 3,000 3,000 3,589 (589) - - - -
Postage 2,000 2,000 440 1,560 - - - -
Office Supplies 2,122 2,122 1,774 348 - - - -
Equipment Operation 250 250 - 250 - - - -
Business Travel 500 500 419 81 - - - -
Training 2,000 2,000 1,702 298 - - - -
Board's Expenditures 6,500 6,500 5,213 1,287 - - - -
Marketing/Promotions - - 1,720 (1,720) - - - -
Communications 1,200 1,200 2,066 (866) - - - -
Other Charges 57,616 57,616 115,873 (58,257) - - - -
Local Allocation 225,000 225,000 225,890 (890) - - - -
Total Expenditures 1,274,932 1,067,632 1,064,208 3,424 - - - -
Excess of Revenues Over (Under)
Expenditures ( 391,674) (391,674) (396,822) (5,148) - - 19 19
OTHER FINANCING SOURCES
Transfers In for:
Program Contracted Services 391,674 391,674 391,674 - - - - -
Net Increase (Decrease) in Fund Balances $ - $ - (5,148) $ (5,148) $ - $ - 19 $ 19
Fund Balances, July 1 69,379 30,474
Fund Balances, June 30 $ 64,231 $ 30,493
-158-

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, 2016
(CONTINUED)
TOTAL
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ 586,886 $ 3 60,286 $ 358,856 $ (1,430)
296,372 2 96,372 296,372 -
- - 19 19
- - 3,241 3,241
- 19,300 8,917 (10,383)
883,258 6 75,958 667,405 (8,553)
732,282 4 80,682 420,995 5 9,687
170,696 1 86,812 186,929 (117)
68,778 71,962 69,630 2,332
2 ,988 2,988 2,988 -
- 25,000 24,980 20
3 ,000 3,000 3,589 (589)
2 ,000 2,000 440 1,560
2 ,122 2,122 1,774 348
2 50 250 - 250
5 00 500 419 81
2 ,000 2,000 1,702 298
6 ,500 6,500 5,213 1,287
- - 1,720 (1,720)
1 ,200 1,200 2,066 (866)
57,616 57,616 115,873 (58,257)
225,000 2 25,000 225,890 (890)
1,274,932 1 ,067,632 1,064,208 3,424
(391,674) (391,674) (396,803) (5,129)
391,674 3 91,674 391,674 -
$ - $ - (5,129) $ (5,129)
99,853
$ 94,724
-159-

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.
-161-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
NET POSITION BY COMPONENT - GOVERNMENT-WIDE
(GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 1
2007 2008 2009 2010 2011
Governmental Activities:
Net Investment in Capital Assets $ 103,657,227 $ 117,831,360 $ 123,217,989 $ 121,702,025 $ 118,274,533
Restricted 18,012,695 15,376,330 16,582,660 22,290,307 22,399,514
Unrestricted (deficit) (1) (3,740,905) (15,075,202) (26,672,299) (45,795,597) (61,193,944)
Total Governmental Activities Net Position 117,929,017 118,132,488 113,128,350 98,196,735 79,480,103
Business-type Activities:
Net Investment in Capital Assets 74,463,912 77,237,512 77,146,688 79,032,373 78,069,061
Restricted 19,133,485 18,276,271 19,886,675 18,180,809 16,821,905
Unrestricted - - - - -
Total Business-type Activities Net Position 93,597,397 95,513,783 97,033,363 97,213,182 94,890,966
Primary Government:
Net Investment in Capital Assets 178,121,139 195,068,872 200,364,677 200,734,398 196,343,594
Restricted 37,146,180 33,652,601 36,469,335 40,471,116 39,221,419
Unrestricted (deficit) (1) (3,740,905) (15,075,202) (26,672,299) (45,795,597) (61,193,944)
Total Primary Government Net Position $ 211,526,414 $ 213,646,271 $ 210,161,713 $ 195,409,917 $ 174,371,069
NOTES:
* Government-wide net position information is reported on the accrual basis of accounting.
* Accounting standards require that net position be reported in three components in the financial
statements: net investment in capital assets, restricted; and unrestricted. Net
position is considered restricted when (1) an external party, such as the state or federal
government, places a restriction on how the resources may be used, or (2) enabling
legislation is enacted by the County.
* Source: Statement of Net Position
(1) In the government-wide financial statements, the County has reported negative unrestricted amounts for some years.
This is due to the fact that the County issues general obligation bonded debt for purposes of capital construction on
behalf of the Queen Anne's County Board of Education. Absent the effect of this relationship, the County would
have reported the following:
Government-wide unrestricted (deficit) net position would have been:
Unrestricted (deficit) net position reported above $ (3,740,905) $ (15,075,202) $ (26,672,299) $ (45,795,597) $ (61,193,944)
Debt issued for capital on behalf of others 57,496,385 53,758,049 50,291,243 57,677,186 72,437,047
County (deficit) net position absent the effect of this relationship $ 53,755,480 $ 38,682,847 $ 23,618,944 $ 11,881,589 $ 11,243,103
(2) In fiscal year 2013, the County consolidated two Enterprise funds into the General Fund. This consolidation resulted in a total net position change of $539,220 between Governmental Activities and Business-type Activities.
The FY2012 Net Position has been reclassified to show this change.
(3) FY2013 Net Position of Governmental Activities was restated in fiscal year 2014.
(4) FY2014 Net Position of Governmental and Business-Type Activities was restated in fiscal year 2015.
-162-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
NET POSITION BY COMPONENT - GOVERNMENT-WIDE
(GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 1
(CONTINUED)
2012 2013 2014 2015 2016
$ 118,564,684 $ 121,246,426 $ 127,369,959 $ 125,434,538 $ 123,466,319
5,982,041 15,691,080 17,616,132 20,464,486 21,063,295
(44,686,543) (66,089,615) (71,169,310) (73,475,567) (78,567,505)
79,860,182 ( 2) 70,847,891 (3) 73,816,781 (4) 72,423,457 65,962,109
76,763,695 78,693,078 79,783,160 80,787,152 80,909,015
3,513,948 3,176,328 3,110,033 3,061,534 1,699,914
12,591,302 11,031,281 8,721,212 8,486,063 10,240,161
92,868,945 ( 2) 92,900,687 91,614,405 (4) 92,334,749 92,849,090
195,328,379 199,939,504 207,153,119 206,221,690 204,375,334
9,495,989 18,867,408 20,726,165 23,526,020 22,763,209
(32,095,241) (55,058,334) (62,448,098) (64,989,504) (68,327,344)
$ 172,729,127 ( 2) $ 163,748,578 (3) $ 165,431,186 (4) $ 164,758,206 $ 158,811,199
$ (32,095,241) $ (55,058,334) $ (62,448,098) $ (64,989,504) $ (68,327,344)
68,278,842 63,283,726 67,651,486 66,219,608 63,271,304
$ 36,183,601 $ 8,225,392 $ 5,203,388 $ 1,230,104 $ (5,056,040)
-163-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET POSITION - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
2007 2008 2009 2010 2011
Expenses
Governmental Activities:
General Government $ 9,854,468 $ 11,167,743 $ 13,317,683 $ 14,089,387 $ 15,968,633
Public Safety 19,149,388 20,721,185 23,570,049 25,361,341 25,413,678
Public Works 9,913,917 10,420,547 10,237,718 9,432,489 9,098,949
Health 1,450,866 1,441,143 1,590,004 1,663,321 1,701,677
Social Services 4,474,784 4,978,883 5,617,621 5,554,667 5,001,240
Education 56,118,585 58,034,317 53,296,238 53,491,659 57,506,341
Parks & Recreation (3) 3,158,455 3,330,087 5,060,018 3,618,427 3,090,228
Library 1,266,183 1,270,718 1,414,008 1,473,689 1,457,336
Conservation of Natural Resources 497,926 2,172,443 2,473,308 5,281,372 3,811,748
Economic/Community Development 3,258,876 3,527,908 2,197,116 2,001,306 1,893,570
Interest and Fiscal Charges 2,864,493 3,033,416 2,831,002 3,510,678 4,078,105
Total Governmental Activities Expenses 112,007,941 120,098,390 121,604,765 125,478,336 129,021,505
Business-type Activities:
Water and Sewer 7,802,798 9,621,784 10,689,782 10,610,705 10,905,989
Golf Course (4) 3,273,986 2,179,157 2,178,163 2,789,901 4,099,507
Public Landings and Marinas (5) 57,372 27,344 38,050 96,739 67,395
Airport 674,337 812,067 879,906 1,017,780 1,167,655
Total Business-type Activities Expenses 11,808,493 12,640,352 13,785,901 14,515,125 16,240,546
Total Primary Government Expenses 123,816,434 132,738,742 135,390,666 139,993,461 145,262,051
Program Revenues
Governmental Activities:
General Government
Charges for Services 1,127,737 1,047,371 1,055,945 1,261,230 1,086,641
Operating Grants and Contributions 377,412 295,898 403,018 546,176 694,347
Capital Grants and Contributions 5,000 757,975 5,567 44,743 118,100
Total Revenue 1,510,149 2,101,244 1,464,530 1,852,149 1,899,088
Public Safety
Charges for Services 1,642,258 3,167,090 1,394,463 1,263,212 1,090,545
Operating Grants and Contributions 1,255,307 1,254,611 1,266,869 1,891,120 1,461,080
Capital Grants and Contributions 272,497 1,171 273,176 303,566 82,885
Total Revenue 3,170,062 4,422,872 2,934,508 3,457,898 2,634,510
Public Works
Charges for Services 871,962 1,014,600 714,765 791,796 872,352
Operating Grants and Contributions 5,572,760 6,304,965 7,566,648 632,923 546,719
Capital Grants and Contributions 1,838,101 544,610 298,500 264,078 901,289
Total Revenue 8,282,823 7,864,175 8,579,913 1,688,797 2,320,360
Social Services
Charges for Services 73,497 64,041 68,386 67,423 69,382
Operating Grants and Contributions 2,589,967 2,911,796 2,928,291 2,666,917 2,050,062
Capital Grants and Contributions 172,732 613,804 348,124 2,688,245 215,748
Total Revenue 2,836,196 3,589,641 3,344,801 5,422,585 2,335,192
Education
Charges for Services 963,216 1,011,013 740,213 852,201 755,443
Operating Grants and Contributions - - 8,050 433,000 -
Capital Grants and Contributions - - 161,673 - -
Total Revenue 963,216 1,011,013 909,936 1,285,201 755,443
Parks & Recreation
Charges for Services 158,447 302,195 240,954 177,568 187,901
Operating Grants and Contributions 58,485 72,659 5 09 123,336 1,868
Capital Grants and Contributions 4,363,393 5,666,226 1,087,329 631,504 199,698
Total Revenue 4,580,325 6,041,080 1,328,792 932,408 389,467
Conservation of Natural Resources
Charges for Services 100,488 88,534 97,481 101,019 75,354
Operating Grants and Contributions 597,613 322,718 55,847 93,002 1,006,138
Capital Grants and Contributions - - 691,085 4,191,024 1,923,471
Total Revenue 698,101 411,252 844,413 4,385,045 3,004,963
Economic/Community Development
Charges for Services 4,083 5,249 4,786 - 4,236
Operating Grants and Contributions 120,254 163,245 641,305 - 239,893
Capital Grants and Contributions - - - - 110,561
Total Revenue 124,337 168,494 646,091 - 354,690
Total Governmental Activities Program Revenues 22,165,209 25,609,771 20,052,984 19,024,083 13,693,713
-164-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET POSITION - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
(CONTINUED)
2012 2013 2014 2015 2016
$ 13,421,531 $ 13,639,728 $ 14,133,149 $ 10,849,277 $ 13,936,312
25,469,721 26,174,144 26,666,211 25,297,450 27,525,712
10,373,286 11,891,013 12,365,647 14,363,603 19,522,534
1,642,723 1,812,920 2,083,201 1,856,158 2,032,657
4,526,166 5,560,196 5,040,139 4,775,440 5,300,871
53,693,309 49,459,783 54,882,430 65,633,331 60,752,025
- - - - -
1,302,163 1,304,076 1,336,098 1,458,348 1,622,848
2,802,337 838,775 2,395,762 587,147 1,799,234
887,837 1,108,912 1,528,035 1,763,024 3,391,547
4,196,072 4,042,236 3,987,943 4,039,622 4,345,527
118,315,145 115,831,783 124,418,615 130,623,400 140,229,267
10,711,211 11,783,515 11,059,306 10,412,432 10,615,466
2,269,933 538,420 515,325 496,065 505,085
110,884 535,837 544,945 537,823 529,943
1,457,087 913,845 807,226 1,014,491 966,896
14,549,115 13,771,617 12,926,802 12,460,811 12,617,390
132,864,260 129,603,400 137,345,417 143,084,211 152,846,657
1,081,808 1,272,807 1,500,273 1,505,857 1,565,170
742,205 697,712 606,649 644,297 582,571
116,710 135,032 589,988 96,684 (30,000)
1,940,723 2,105,551 2,696,910 2,246,838 2,117,741
1,320,647 1,387,591 1,286,945 1,244,752 1,354,350
1,113,018 1,328,493 1,081,577 1,052,666 1,088,597
191,223 249,594 282,139 119,118 175,653
2,624,888 2,965,678 2,650,661 2,416,536 2,618,600
1,107,426 1,636,604 1,425,012 1,275,538 1,337,358
488,027 624,653 712,550 527,538 1,029,019
541,887 1,687,783 2,221,299 80,000 108,880
2,137,340 3,949,040 4,358,861 1,883,076 2,475,257
71,655 71,973 65,537 68,187 76,404
2,076,096 2,613,905 2,026,675 2,056,111 1,834,000
18,691 51,023 67,392 40,527 140,400
2,166,442 2,736,901 2,159,604 2,164,825 2,050,804
1,169,425 1,052,691 1,721,379 1,249,332 1,230,994
- - - - -
- - - - -
1,169,425 1,052,691 1,721,379 1,249,332 1,230,994
- - - - -
- - - - -
- - - - -
- - - - -
98,593 63,105 73,279 72,688 70,708
36,872 400,193 103,892 96,195 68,152
998,757 - 75,820 3,637 573,003
1,134,222 463,298 252,991 172,520 711,863
159,492 234,100 508,000 80,558 311,000
245,143 176,216 255,100 285,344 156,804
81,867 575,440 (69,569) - -
486,502 985,756 693,531 365,902 467,804
11,659,542 14,258,915 14,533,937 10,499,029 11,673,063
CONTINUED
-165-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET POSITION - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
(CONTINUED)
2007 2008 2009 2010 2011
Business-type Activities:
Water and Sewer
Charges for Services $ 12,169,440 $ 8,014,366 $ 7,695,100 $ 8,224,428 $ 8,192,471
Operating Grants and Contributions - - - 98,492 -
Capital Grants and Contributions 5,015,603 2,584,371 682,935 208,115 837,426
Total Revenue 17,185,043 10,598,737 8,378,035 8,531,035 9,029,897
Golf Course (4)
Charges for Services 1,581,030 1,459,725 1,526,244 1,633,203 1,568,227
Operating Grants and Contributions 1,279,648 55,953 45,824 41,838 39,572
Capital Grants and Contributions 144,844 95,890 69,068 289,895 196,487
Total Revenue 3,005,522 1,611,568 1,641,136 1,964,936 1,804,286
Public Landings and Marinas (5)
Charges for Services 108,100 105,900 100,250 62,600 84,987
Operating Grants and Contributions 92,348 3,710 - 29,017 16,241
Capital Grants and Contributions - - - 545,123 588,326
Total Revenue 200,448 109,610 100,250 636,740 689,554
Airport
Charges for Services 32,683 46,960 34,907 50,585 37,955
Operating Grants and Contributions 1,112 - - 33,922 3,715
Capital Grants and Contributions 667,166 382,945 289,112 1,519,810 448,600
Total Revenue 700,961 429,905 324,019 1,604,317 490,270
Total Business-type Activities Program Revenues 21,091,974 12,749,820 10,443,440 12,737,028 12,014,007
Total Primary Government Program Revenues 43,257,183 38,359,591 30,496,424 31,761,111 25,707,720
Net (Expense) Revenue (1)
Governmental activities ( 89,842,732) ( 94,488,619) ( 101,551,781) ( 106,454,253) ( 115,327,792)
Business-type activities 9,283,481 109,468 (3,342,461) (1,778,097) (4,226,539)
Total Primary Government Net Expense $ ( 80,559,251) $ ( 94,379,151) $ ( 104,894,242) $ ( 108,232,350) $ ( 119,554,331)
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes (2) $ 90,910,849 $ 91,853,216 $ 95,530,316 $ 90,469,883 $ 96,093,533
Investment income 3,162,830 2,128,509 642,472 144,553 136,523
Gain on Sale of Capital Assets 13,605 - 1,540,404 26,731 281,158
Miscellaneous 1,928,398 721,946 2,182,525 786,719 711,868
Transfers In (Out) (1,070,297) (11,581) (3,348,074) (559,331) (611,922)
Total Governmental Activities 94,945,385 94,692,090 96,547,643 90,868,555 96,611,160
Business-type Activities:
Investment income 956,687 875,509 595,279 436,045 407,629
Gain on Sale of Capital Assets 4,691 - - - -
Miscellaneous 876,714 919,828 918,688 962,540 884,772
Transfers In (Out) 1,070,297 11,581 3,348,074 559,331 611,922
Total Business-type Activities 2,908,389 1,806,918 4,862,041 1,957,916 1,904,323
Total Primary Government 97,853,774 96,499,008 101,409,684 92,826,471 98,515,483
Change in Net Position
Governmental activities 5,102,653 203,471 (5,004,138) ( 15,585,698) ( 18,716,632)
Business-type activities 12,191,870 1,916,386 1,519,580 179,819 (2,322,216)
Total Primary Government $ 17,294,523 $ 2,119,857 $ (3,484,558) $ ( 15,405,879) $ ( 21,038,848)
NOTES:
* Government-wide net position information is reported on the accrual basis of accounting.
* Source: Statement of Activities.
(1) Net (expense)/revenue is the difference between the expenses and program revenues of a function or program. It indicates
the degree to which a function or program is supported with its own fees and program-specific grants versus its reliance
upon funding from taxes and general revenues. Numbers in parentheses indicate that expenses were greater than program
revenues and therefore general revenues were needed to finance that function or program. Numbers without parentheses
mean that program revenues were more than sufficient to cover expenses.
(2) See Table 2-b for detail of General Tax Revenues.
(3) Beginning in FY12, Parks & Recreation governmental activities are included in public works.
(4) Prior to FY13, this section included data for the Golf Course, Recreation Programs, Public Landings,
and Property Management Funds. Beginning in FY13, this section only includes Golf Course Fund data.
(5) Prior to FY13, this section only included data for the Public Marinas Funds. Beginning in FY13, this section includes
data for both Public Marinas and Public Landings, as these funds were combined to form one fund.
-166-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET POSITION - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST TEN FISCAL YEARS
Table 2-a
(CONTINUED)
2012 2013 2014 2015 2016
$ 7,977,667 $ 8,181,434 $ 8,341,848 $ 8,840,213 $ 8,956,360
55,728 161,600 90,000 90,000 85,099
347,573 2,048,768 665,268 1,862,257 1,958,051
8,380,968 10,391,802 9,097,116 10,792,470 10,999,510
1,501,550 313,364 297,293 295,955 305,528
52,915 - - - -
28,680 - - - -
1,583,145 313,364 297,293 295,955 305,528
102,290 440,270 423,478 423,723 423,427
14,183 42,914 36,439 43,304 36,781
78,314 18,692 - - -
194,787 501,876 459,917 467,027 460,208
58,589 48,072 49,061 53,200 45,916
47,412 2,621 2,420 73,311 52,837
693,162 2,472,782 7,457 - -
799,163 2,523,475 58,938 126,511 98,753
10,958,063 13,730,517 9,913,264 11,681,963 11,863,999
22,617,605 27,989,432 24,447,201 22,180,992 23,537,062
( 106,655,603) ( 101,572,868) ( 109,884,678) ( 120,124,371) ( 128,556,204)
(3,591,052) (41,100) (3,013,538) (778,848) (753,391)
$ ( 110,246,655) $ ( 101,613,968) $ ( 112,898,216) $ ( 120,903,219) $ ( 129,309,595)
$ 105,693,926 $ 107,978,036 $ 112,123,625 $ 116,821,607 $ 121,011,135
126,650 107,095 95,286 94,092 174,691
27,627 163,426 346,765 1,098,632 161,106
1,254,255 1,051,760 877,629 1,076,893 949,046
(605,996) (337,843) (589,737) (360,177) (201,122)
106,496,462 108,962,474 112,853,568 118,731,047 122,094,856
374,665 356,374 343,568 323,585 320,443
- - - - -
1,127,590 855,504 793,951 815,430 746,167
605,996 359,277 589,737 360,177 201,122
2,108,251 1,571,155 1,727,256 1,499,192 1,267,732
108,604,713 110,533,629 114,580,824 120,230,239 123,362,588
(159,141) 7,389,606 2,968,890 (1,393,324) (6,461,348)
(1,482,801) 1,530,055 (1,286,282) 720,344 514,341
$ (1,641,942) $ 8,919,661 $ 1,682,608 $ (672,980) $ (5,947,007)
-167-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
GENERAL TAX REVENUES - GOVERNMENTAL ACTIVITIES
LAST TEN FISCAL YEARS
Table 2-b
2007 2008 2009 2010 2011
Local Property Taxes $ 46,185,050 $ 50,021,587 $ 55,362,114 $ 59,267,240 $ 60,070,368
Local Income Tax 35,346,494 35,700,111 34,834,937 25,715,247 30,624,679
Other Local Taxes 9,379,305 6,131,518 5,333,265 5,487,396 5,398,486
Total Taxes - Governmental Activities $ 90,910,849 $ 91,853,216 $ 95,530,316 $ 90,469,883 $ 96,093,533
2012 2013 2014 2015 2016
Local Property Taxes $ 65,937,415 $ 65,591,225 $ 64,712,683 $ 64,672,721 $ 65,185,546
Local Income Tax 34,028,234 35,769,303 40,899,804 44,643,870 47,928,725
Other Local Taxes 5,728,277 6,617,508 6,511,138 7,505,016 7,896,864
Total Taxes - Governmental Activities $ 105,693,926 $ 107,978,036 $ 112,123,625 $ 116,821,607 $ 121,011,135
NOTES:
* Government-wide general tax revenue information is reported on the accrual basis of accounting.
* Source: Statement of Activities.
-168-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 3
2007 2008 2009 2010
General Fund:
Reserved $ 7 ,140,303 $ 8 ,948,231 $ 8,643,600 $ 7,734,692
Unreserved 1 5,302,827 3 ,972,847 6,381,843 6,296,418
Total General Fund 2 2,443,130 1 2,921,078 15,025,443 $ 14,031,110
All Other Governmental Funds:
Reserved 2 0,060,988 1 6,706,954 17,007,368 15,153,381
Unreserved, reported in:
Capital Projects Fund 1 7,618,012 1 4,409,216 1,723,066 12,538,916
Special Revenue Funds 3 ,019,522 2 ,185,304 2,751,120 7,842,939
Total All Other Governmental Funds 4 0,698,522 3 3,301,474 21,481,554 35,535,236
Total All Governmental Funds $ 6 3,141,652 $ 4 6,222,552 $ 36,506,997 $ 49,566,346
2011 2012 2013 2014 2015 2016
General Fund:
Nonspendable $ 4 ,000 $ 5 55,215 $ 626,122 $ 480,385 $ 687,777 $ 586,481
Restricted 3 33,798 3 40,670 8,111,614 8,375,368 8,681,112 9,002,389
Committed 6 57,068 6 95,944 - 1,157,360 2,000,000 3,000,000
Assigned 7 0,000 - 1,284,657 1,284,875 2,034,875 1,926,782
Unassigned 4 ,753,656 1 1,207,265 5,965,003 7,123,519 7,793,085 8,468,591
Total General Fund (1) 5 ,818,522 1 2,799,094 15,987,396 18,421,507 21,196,849 22,984,243
All Other Governmental Funds:
Nonspendable 4 ,401,483 5 ,136,024 5,406,512 5,470,608 5,919,048 6,146,072
Restricted 2 2,065,716 1 2,255,292 12,724,859 21,824,970 17,794,372 21,316,088
Committed 1 ,820,818 2 ,054,749 3,480,382 4,097,033 4,209,177 3,425,701
Assigned 1 4,745,215 1 8,654,017 24,665,235 25,939,319 23,093,224 18,029,073
Unassigned (172,381) (157,828) (135,515) ( 115,800) ( 108,185) (115,129)
Total All Other Governmental Funds (1) 4 2,860,851 3 7,942,254 46,141,473 57,216,130 50,907,636 48,801,805
Total All Governmental Funds $ 4 8,679,373 $ 5 0,741,348 $ 62,128,869 $ 75,637,637 $ 72,104,485 $ 71,786,048
NOTES:
* Fund balance information for governmental funds is reported on the modified accrual basis of accounting.
* Source: Balance Sheet, Governmental Funds.
(1) As of June 30, 2011, fund balance classifications changed due to the implementation of GASB 54.
-169-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
2007 2008 2009 2010 2011
Revenues
Taxes
Local Property Taxes $ 4 6,208,342 $ 5 0,007,054 $ 5 5,374,053 $ 59,242,742 $ 6 0,097,959
Local Income Taxes 34,980,663 34,767,725 35,988,334 29,647,125 29,527,496
Other Local Taxes 9,379,305 6,131,518 5,333,265 5,487,396 5,398,486
State Shared Taxes 5,125,419 5,306,763 7,591,829 508,138 230,401
Licenses and Permits 895,931 890,821 874,639 863,782 919,663
Intergovernmental 10,661,130 12,199,511 8,049,695 12,061,066 8,777,729
Bond Interest Reimbursement - Build America Bond - - - 193,567 438,022
Charges for Current Services 3,806,563 4,049,902 3,326,696 3,396,080 3,143,846
Fines and Forfeitures 239,194 1,759,370 115,658 258,937 78,345
Capital Contributions - Developer - - - - -
Investment Income 3,162,830 2,128,509 642,472 144,553 136,523
Donations 74,694 247,002 76,867 140,731 109,342
Miscellaneous 1,853,706 719,067 2,182,525 786,719 708,455
Total Revenues 116,387,777 118,207,242 119,556,033 112,730,836 109,566,267
Expenditures
Current
General Government (1) 8,772,229 10,128,699 10,841,479 10,608,976 10,397,457
Public Safety 17,918,740 19,292,661 20,483,238 21,344,575 21,127,321
Public Works 9,167,362 9,182,618 8,678,715 7,671,352 7,277,767
Health 1,428,395 1,430,670 1,572,848 1,637,101 1,670,222
Social Services 4,260,927 4,747,491 5,029,493 4,767,647 4,098,650
Education 56,163,966 58,086,283 53,348,513 53,545,597 57,566,865
Parks and Recreation 2,809,748 3,083,038 3,145,367 3,055,335 2,521,175
Library 1,242,573 1,247,108 1,390,398 1,424,078 1,433,725
Conservation of Natural Resources 483,810 2,177,820 2,445,352 5,263,577 3,872,916
Economic/Community Development 3,188,316 3,513,153 1,968,587 1,847,195 1,715,524
Miscellaneous 915,542 731,771 706,792 1,373,090 4,699,452
Capital Outlay 14,291,416 13,676,569 8,594,972 7,868,741 4,838,581
Debt Service
Principal 3,795,769 4,888,405 5,089,347 4,948,144 6,964,558
Debt Issuance Costs 236,899 3,972 (423) 145,884 129,671
Interest and Fiscal Charges 2,257,928 3,147,529 2,778,490 3,114,505 3,629,426
Total Expenditures 126,933,620 135,337,787 126,073,168 128,615,797 131,943,310
Excess (Deficiency) of Revenues over (under) Expenditures (10,545,843) (17,130,545) (6,517,135) (15,884,961) (22,377,043)
Other Financing Sources (Uses)
Issuance of Debt 23,219,790 510,617 122,780 29,299,154 21,897,570
Other Financing Use - Proceeds of Refunding Bonds - - - - -
Re-allocation of 2006 Bonds - (345,955) - - -
Bond Premiums 236,899 3,972 (423) 157,800 139,136
Payments to Bond Refunding Agent - - - - -
Other Financing Use - Debt Service - Principal - - - - -
Proceeds of Capital Asset Disposals 88,535 45,494 64,089 30,861 582,601
Insurance Proceeds - 8,898 44,907 15,826 99,028
Transfers In 13,131,736 17,014,307 5,449,499 18,184,911 5,386,256
Transfers Out (14,202,033) (17,025,888) (8,879,272) (18,744,242) (6,614,521)
Total Other Financing Sources (Uses) 22,474,927 211,445 (3,198,420) 28,944,310 21,490,070
Special and Extraordinary Items
Special Item - - - - -
Extraordinary Gains (Losses) (42,242) - - - -
Total Special Items and Extraordinary Gains (Losses) (42,242) - - - -
Net Increase (Decrease) in Fund Balances $ 1 1,886,842 $ (16,919,100) $ (9,715,555) $ 13,059,349 $ (886,973)
Debt service as a percentage of non-capital expenditures (2, 3) 5.38% 6.61% 6.79% 6.69% 8.34%
NOTES:
* Governmental fund information is reported on the modified accrual basis of accounting.
* Source: Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
and the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities.
(1) For all fiscal years, "General Government" includes amounts previously classified as "Miscellaneous," "Intergovernmental" and/or "Contingency."
(2) Only the principal and interest components of debt service expenditures are included in the calculation of the ratio of total debt service expenditures to noncapital expenditures.
(3) Noncapital expenditures represents Total Expenditures above, less the Net Increase in Capital Assets from the Reconciliation between the Government-Wide Statement of Activities
and the Statement of Revenues, Expenditures, and Changes in Fund Balance. Only the assets acquired (not included assets transferred or donated) from the reconciliation are used in the calculation.
-170-

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
(CONTINUED)
2012 2013 2014 2015 2016
$ 6 5,918,832 $ 6 5,554,079 $ 6 4,701,622 $ 6 4,672,292 $ 6 4,946,443
35,969,879 39,438,906 40,326,921 42,889,715 46,424,552
5,728,277 6,617,508 6,511,137 7,505,016 7,896,865
306,235 510,726 749,366 557,834 623,256
877,365 1,004,774 1,080,891 1,062,917 1,078,144
5,867,211 7,588,691 5,588,984 4,030,576 4,696,561
432,212 406,337 383,777 375,323 364,799
3,908,998 4,594,240 5,357,919 4,251,835 4,617,730
222,683 119,857 141,615 182,160 250,110
- - 102,316 - -
126,650 107,095 95,286 94,092 174,691
46,332 36,332 39,055 41,391 45,773
1,254,255 1,051,760 877,629 1,076,893 949,045
120,658,929 127,030,305 125,956,518 126,740,044 132,067,969
9,171,830 9,282,310 10,649,489 8,833,255 9,817,062
20,985,077 21,275,229 22,266,458 23,133,608 23,523,103
7,733,226 9,615,805 9,967,363 12,041,969 15,080,454
1,604,462 1,811,402 2,030,740 1,822,856 1,992,208
3,533,022 4,051,741 3,474,886 3,602,146 3,835,730
53,755,497 48,418,107 59,752,944 65,683,908 60,808,143
- - - - -
1,277,993 1,278,228 1,310,250 1,432,500 1,597,000
2,794,262 890,480 2,363,254 565,289 1,744,260
758,089 898,129 1,306,516 1,616,784 3,188,928
3,704,702 4,862,189 3,202,417 3,535,585 4,766,722
2,755,949 3,370,909 8,669,375 8,733,509 11,050,384
7,095,307 7,069,406 7,210,561 7,444,611 7,667,316
162,021 (94) 196,870 403,572 218,799
4,116,939 3,675,628 3,501,230 3,846,823 3,696,719
119,448,376 116,499,469 135,902,353 142,696,415 148,986,828
1,210,553 10,530,836 (9,945,835) (15,956,371) (16,918,859)
8,010,000 564,068 22,405,542 25,384,493 15,484,639
- - - - 8,042,773
- - - - -
713,235 (101) 1,118,097 1,901,240 1,650,448
(8,557,455) - - (14,881,834)
- - - - (8,446,336)
47,396 308,856 458,759 1,331,608 18,100
11,631 20,070 61,942 57,916 153,534
9,635,881 10,851,904 5,861,261 5,079,641 9,941,051
(10,369,909) (11,228,409) (6,450,998) (6,449,845) (10,243,787)
(509,221) 516,388 23,454,603 12,423,219 16,600,422
1,360,643 - - - -
- - - - -
1,360,643 - - - -
$ 2 ,061,975 $ 1 1,047,224 $ 1 3,508,768 $ (3,533,152) $ (318,437)
9.66% 9.54% 8.44% 8.43% 8.16%
-171-

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
ASSESSED VALUE OF TAXABLE AND EXEMPT PROPERTY
LAST TEN FISCAL YEARS
Table 5
Real Property (2) Personal Property Total Total
Total Public Utility Taxable Taxable and
Fiscal Commercial Residential (1) Total Direct Assessed Assessed Exempt Exempt
Year Assessed Value Assessed Value Assessed Value Tax Rate (3) Value (2) (4) Value Property Property
2007 $ 1 ,104,093,458 $ 4 ,526,502,291 $ 5 ,630,595,749 $ 0 .8000 $ 6 3,168,480 $ 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 .7700 6 1,729,010 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 .7700 6 1,513,370 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 .7700 6 2,858,590 7,580,931,277 5 96,219,654 8 ,177,150,931
2011 1 ,625,886,760 6 ,054,844,995 7 ,680,731,755 0 .7671 5 9,364,960 7,740,096,715 6 44,654,739 8 ,384,751,454
2012 1 ,485,091,345 6 ,139,645,414 7 ,624,736,759 0 .8471 6 0,635,440 7,685,372,199 6 94,372,116 8 ,379,744,315
2013 1 ,567,115,297 5 ,990,170,828 7 ,557,286,125 0 .8471 6 3,194,130 7,620,480,255 7 32,300,804 8 ,352,781,059
2014 1 ,540,562,905 5 ,935,284,963 7 ,475,847,868 0 .8471 6 4,411,900 7,540,259,768 6 96,880,673 8 ,237,140,441
2015 1 ,526,533,795 5 ,971,094,589 7 ,497,628,384 0 .8471 7 1,076,850 7,568,705,234 7 08,231,797 8 ,276,937,031
2016 1 ,536,236,637 6 ,015,729,665 7 ,551,966,302 0 .8471 7 4,544,230 7,626,510,532 7 13,843,531 8 ,340,354,063
NOTES:
* Tax exempt property is included for purposes of calculating total assessed value, which is used on Table 12-a.
(1) Residential real property includes single-family homes, townhouses, condominiums, and apartment dwellings. The assessed value shown
above has been reduced for the Homestead Credit assessment.
(2) Real property and personal property assessments are done every three years and every year, respectively, by the State
Department of Assessments and Taxation at 100% of estimated fair value.
(3) See Table 6-a for real property direct tax rates. Tax Rates are applied per $100 of assessed value.
(4) The personal property tax rate for Queen Anne's County is zero.
Source: State of Maryland, Department of Assessments and Taxation.
-173-

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
REAL PROPERTY TAX RATES - COUNTY DIRECT RATE
LAST TEN FISCAL YEARS
Table 6-a
County
Fiscal Direct
Year Rate (1)
2007 $ 0 .8000
2008 0.7700
2009 0.7700
2010 0.7700
2011 0.7671
2012 0.8471
2013 0.8471
2014 0.8471
2015 0.8471
2016 0.8471
NOTES:
* No discounts are allowed.
* Taxes are levied as of July 1, are due by September 30, and become delinquent October 1.
* Owner occupied properties may elect to pay on an annual basis. If no election is made,
taxes are paid on a semi-annual basis with payment due by September 30 and December 31.
* Non-owner occupied properties must pay on an annual basis.
* Interest at one percent per month is assessed on delinquent tax bills.
* Revised tax bills based upon certifications from the State received after September 1
may be paid within thirty days without interest.
* Delinquent taxes on real property are collected by sale.
* Costs of tax sale, which vary, are added to the redemption.
* Tax sale date: Third Tuesday in May.
* The personal property tax rate for Queen Anne's County is zero.
(1) Tax Rates are applied per $100 of assessed value.
-174-

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
REAL PROPERTY TAX RATES - COUNTY SPECIAL TAXING DISTRICTS
LAST TEN FISCAL YEARS
Table 6-b
Kent Narrows
Commercial Management
Fiscal and Waterfront
Year Improvement District
2007 $ 0 .0600
2008 0.0600
2009 0.0600
2010 0.0600
2011 0.0600
2012 0.0600
2013 0.0600
2014 0.0600
2015 0.0600
2016 0.0600
NOTES:
* Tax rates are per $100 of assessed value.
* The personal property tax rate for Queen Anne's County is zero.
-175-

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
REAL PROPERTY TAX RATES - OVERLAPPING GOVERNMENTS - TOWNS
LAST TEN FISCAL YEARS
Table 6-c
Fiscal Town of Town of Town of Town of Town of
Year Centreville Barclay Church Hill Millington Queen Anne
2007 $ 0 .4700 $ 0 .1000 $ 0 .3400 $ 0 .2800 $ 0 .1800
2008 0 .4300 0 .1000 0 .3400 0 .2800 0 .1800
2009 0 .3950 0 .1000 0 .3400 0 .2800 0 .1800
2010 0 .3800 0 .1000 0 .3400 0 .2800 0 .1800
2011 0 .3800 0 .1000 0 .3400 0 .2800 0 .1800
2012 0 .3800 0 .2000 0 .3400 0 .2800 0 .1800
2013 0 .3800 0 .2000 0 .3400 0 .2800 0 .1800
2014 0 .3800 0 .2000 0 .3400 0 .2800 0 .1800
2015 0 .3800 0 .2000 0 .3400 0 .2800 0 .1800
2016 0 .3800 0 .2000 0 .3400 0 .2800 0 .1800
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.
-176-

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
REAL PROPERTY TAX RATES - OVERLAPPING GOVERNMENTS - TOWNS
LAST TEN FISCAL YEARS
Table 6-c
(CONTINUED)
Town of Town of Town of
Queenstown Sudlersville Templeville
$ 0 .2000 $ 0 .1670 $ 0 .2520
0 .2000 0 .1670 0 .2520
0 .2000 0 .1670 0 .3600
0 .1810 0 .1670 0 .3600
0 .1904 0 .1670 0 .3600
0 .1890 0 .1670 0 .3600
0 .1890 0 .1670 0 .3600
0 .1890 0 .1670 0 .3600
0 .1895 0 .1670 0 .3600
0 .1850 0 .1670 0 .3600
-177-

QUEEN ANNE'S COUNTY, MARYLAND
REVENUE CAPACITY
TEN HIGHEST COMMERCIAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND NINE YEARS AGO
Table 7
For the Fiscal Year Ended June 30, 2016
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 64,726,400 0.85 %
KRM Development Corporation 20,343,367 0.27
Great American Life Insurance Company 14,251,500 0.19
Maryland General Land Co LLC 13,016,200 0.17
Beach Harbor Campers Cooperative Inc 12,582,700 0.16
Aspen Institute for Humanistic Studies 10,691,700 0.14
Anne Arundel Real Estate Holding Co 10,392,267 0.14
Shore Health System Inc 9,975,900 0.13
Mears Point Association 9,967,200 0.13
Kent Narrows Properties LLC 9,576,800 0.13
Total $ 175,524,034 2.31 %
Total Assessable Base $ 7,626,510,532 100.00 %
For the Fiscal Year Ended June 30, 2007
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 30,681,540 0.54 %
KRM Development Corporation 23,657,130 0.42
Waterford Centreville, LLC 18,684,070 0.33
Great American Life Insurance Company 13,988,333 0.25
Kent Narrows Properties 10,350,500 0.18
K Hovnanian's Four Seasons at Kent Island 9,873,893 0.17
213 Centreville Associates, LLC 9,516,300 0.17
Didonato, LLC 9,032,430 0.16
Washington Brick and Terra Cotta Company 8,616,310 0.15
TC Shopping Center Limited Partnership 8,186,197 0.14
Total $ 142,586,703 2.51 %
Total Assessable Base $ 5,693,764,229 1 00.00 %
Source: State of Maryland Department of Assessments and Taxation
-178-

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
2007 $ 4 4,500,414 $ 44,401,745 99.78% $ 97,926 $ 44,499,671 100.00%
2008 48,575,431 48,505,180 99.86% 69,445 48,574,625 100.00%
2009 53,839,023 53,756,369 99.85% 80,374 53,836,743 100.00%
2010 57,788,231 57,720,564 99.88% 61,985 57,782,549 99.99%
2011 58,758,234 58,696,129 99.89% 55,435 58,751,564 99.99%
2012 64,549,671 64,459,862 99.86% 78,143 64,538,005 99.98%
2013 63,904,147 63,596,067 99.52% 52,680 63,648,747 99.60%
2014 63,184,321 62,834,349 99.45% 53,890 62,888,239 99.53%
2015 63,338,629 63,231,601 99.83% 34,004 63,265,605 99.88%
2016 63,799,184 63,647,404 99.76% - 63,647,404 99.76%
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.
-179-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Table 9
Governmental Activities
General Total
Fiscal Obligation Notes Capital Governmental
Year Bonds Payable Leases Activities
2007 $ 7 4,717,649 $ 5 61,000 $ 2 48,460 $ 75,527,109
2008 6 9,637,468 8 22,617 2 02,978 70,663,063
2009 6 4,411,805 9 13,183 1 55,482 65,480,470
2010 8 7,967,432 1 ,652,082 1 05,884 89,725,398
2011 1 02,791,729 1 ,070,632 54,089 103,916,450
2012 9 7,127,263 8 89,256 - 98,016,519
2013 9 0,092,100 1 ,146,755 - 91,238,855
2014 1 07,883,563 9 58,156 - 108,841,719
2015 1 12,060,053 7 84,785 - 112,844,838
2016 1 18,977,909 1 ,913,199 - 120,891,108
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)
2007 $ 4 ,430,817 $ 22,516,916 $ - $ 26,947,733 $ 102,474,842 5.50% $ 2,216
2008 3 ,947,915 2 1,058,076 - 25,005,991 95,669,054 4.76% 1,998
2009 3 ,458,660 1 9,624,863 - 23,083,523 88,563,993 4.19% 1,881
2010 3 ,445,366 1 8,166,367 - 21,611,733 111,337,131 6.47% 2,289
2011 3 ,458,828 1 6,692,171 - 20,150,999 124,067,449 7.20% 2,590
2012 2 ,936,543 1 5,238,959 - 18,175,502 116,192,021 6.95% 2,431
2013 2 ,490,475 1 3,767,769 - 16,258,244 107,497,099 6.12% 2,210
2014 2 ,053,736 1 2,584,475 - 14,638,211 123,479,930 6.97% 2,538
2015 3 ,540,295 1 1,388,918 - 14,929,213 127,774,051 6.89% 2,618
2016 3 ,520,859 1 0,471,639 - 13,992,498 134,883,606 7.24% 2,780
NOTES:
(1) See Table 14 for personal income and population data, which are used in calculating these ratios.
-180-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Table 10
Percentage of
Fiscal General Total Taxable Per
Year Bonded Debt (1) Assessable Base (2) Capita (3)
2007 $ 79,148,466 1.39% $ 1,712
2008 73,585,383 1.15% 1,537
2009 67,870,465 0.96% 1,441
2010 91,412,798 1.21% 1,879
2011 106,250,557 1.37% 2,218
2012 100,063,806 1.30% 2,093
2013 92,582,575 1.21% 1,903
2014 109,937,299 1.46% 2,260
2015 115,600,348 1.53% 2,369
2016 122,498,768 1.61% 2,525
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.
-181-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF NET DIRECT AND OVERLAPPING DEBT
AS OF JUNE 30, 2016
Table 11
Name of Jurisdiction Gross Debt
Queen Anne's County:
County Government
Total Net Direct Debt (1) $ 1 20,891,108
Towns: (2)
Centreville (100%) 1 1,636,554
Millington (100%) 1 ,209,081
Queenstown (100%) 5 ,451,611
Sudlersville (100%) 4 ,646,662
Total Net Overlapping Debt 2 2,943,908
Total Net Direct and Overlapping Debt $ 1 43,835,016
NOTES:
(1) Net direct debt of the County includes Governmental Activities general obligation bonds, notes payable, and capital leases. See Table 9.
Overlapping debt is the debt of other governmental entities located within the County that is
payable in whole or in part by taxpayers of the County.
(2) Entities are located wholly within Queen Anne's County. Debt information reported by municipalities.
-183-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
2007 2008 2009 2010 2011
Computation of Legal Debt Margin - for Queen Anne's County
Other than Debt related to the Sanitary District:
Authorized debt limit under Title 5 (Subtitle 4) (1) $ 8,000,000 $ 8,000,000 $ 8,000,000 $ 8,000,000 $ 8,000,000
Authorized bonded debt under specific public laws
Enterprise Funds, excluding Sanitary District (4) 1,483,571 1,458,458 1,446,993 1,862,866 2,340,495
General Obligation Debt (4) 74,717,649 69,637,468 64,411,805 87,967,432 102,791,729
Subtotal 76,201,220 71,095,926 65,858,798 89,830,298 105,132,224
Total authorized debt under Title 5 and specific public laws 84,201,220 79,095,926 73,858,798 97,830,298 113,132,224
LESS Outstanding bonds, notes payable, and capital leases (5) 102,474,842 95,669,054 88,563,993 111,337,131 124,067,449
Less: Sanitary District debt (4) 25,430,093 23,520,278 21,616,088 19,735,239 17,803,690
Subtotal 78,072,206 72,148,776 66,947,905 91,601,892 106,263,759
Legal Debt Margin - Other than the Sanitary District $ 7,404,931 $ 6,947,150 $ 6,910,893 $ 6,228,406 $ 6,868,465
Debt related to the Sanitary District Proprietary Fund:
Total taxable assessed value (3) $ 5,693,764,229 $ 6,398,550,545 $ 7,083,072,750 $ 7,580,931,277 $ 7,740,096,715
Plus exempt property (3) 419,303,486 474,798,401 547,163,868 596,219,654 644,654,739
Total assessed value $ 6,113,067,715 $ 6,873,348,946 $ 7,630,236,618 $ 8,177,150,931 $ 8,384,751,454
Debt Limit - 6% of total assessed value (2) $ 366,784,063 $ 412,400,937 $ 457,814,197 $ 490,629,056 $ 503,085,087
LESS Sanitary District 25,552,847 23,520,278 21,616,088 19,735,239 17,803,690
Less: Restricted Cash and Investments in the
Debt Service Fund available for payment of principal 4,746,865 4,551,821 4,180,188 3,925,026 3,658,194
20,805,982 18,968,457 17,435,900 15,810,213 14,145,496
Legal Debt Margin - Sanitary District $ 345,978,081 $ 393,432,480 $ 440,378,297 $ 474,818,843 $ 488,939,591
NOTES:
(1) Title 5, Subtitle 4 (1), of the Code of Public Local Laws of Queen Anne's County authorizes the County to borrow up to $8,000,000 for
general operating and capital improvement expenditures. This authority is in addition to any bonded debt authorized under specific public local laws.
(2) Title 24, Subtitle 1, Section 24-146(A) of the Code of Public Local Laws of Queen Anne's County authorizes the County to borrow an amount not to
exceed 6% of the total value of property assessed. The proceeds of such borrowings must be used for sewer and water system construction payments.
(3) See Table 5.
(4) See Note 9, Section B.
(5) See Note 9.
-184-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
(CONTINUED)
2012 2013 2014 2015 2016
$ 8,000,000 $ 8,000,000 $ 8,000,000 $ 8,000,000 $ 8,000,000
2,304,876 2,160,475 2,053,736 3,540,295 3,520,859
97,127,263 90,092,100 107,883,563 112,060,053 118,977,909
99,432,139 92,252,575 109,937,299 115,600,348 122,498,768
107,432,139 100,252,575 117,937,299 123,600,348 130,498,768
116,192,021 107,497,099 123,479,930 127,774,051 134,883,606
15,870,626 14,097,769 12,584,475 11,388,918 10,471,639
100,321,395 93,399,330 110,895,455 116,385,133 124,411,967
$ 7,110,744 $ 6,853,245 $ 7,041,844 $ 7,215,215 $ 6,086,801
$ 7,685,372,199 $ 7,620,480,255 $ 7,540,259,768 $ 7,568,705,234 $ 7,626,510,532
694,372,116 732,300,804 696,880,673 708,231,797 713,843,531
$ 8,379,744,315 $ 8,352,781,059 $ 8,237,140,441 $ 8,276,937,031 $ 8,340,354,063
$ 502,784,659 $ 501,166,864 $ 494,228,426 $ 496,616,222 $ 500,421,244
15,870,626 14,097,769 12,584,475 11,388,918 10,471,639
3,244,564 2,840,468 2,763,304 2,695,383 1,120,775
12,626,062 11,257,301 9,821,171 8,693,535 9,350,864
$ 490,158,597 $ 489,909,563 $ 484,407,255 $ 487,922,687 $ 491,070,380
-185-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LOCAL DEBT LIMIT
LAST EIGHT FISCAL YEARS
Table 12-b
2009 2010 2011
Computation of Local Debt Limit, as Authorized under Article 95, Section 22F of the Annotated Code of Maryland
and per criteria established by Queen Anne's County Resolution No. 13-04, as adopted May 2013.
CALCULATION PER FIRST FINANCIAL CRITERIA:
The sum of all outstanding and new general obligation and/or
bonded debt is 2.5% or less of the total taxable assessed base.
Total Taxable Assessed Base (1) $ 7,083,072,750 $ 7,580,931,277 $ 7,740,096,715
2.5% 2.5% 2.5%
2.5% of Total Taxable Assessed Base $ 177,076,819 $ 189,523,282 $ 193,502,418
LESS Outstanding and New General Obligation Debt (2) (3)
Enterprise Funds' Debt - Bonds and Notes $ 23,083,523 $ 21,611,733 $ 20,150,999
General Obligation Debt - Bonds and Notes 65,324,988 89,619,514 103,862,361
Total Outstanding and New General Obligation Debt $ 88,408,511 $ 111,231,247 $ 124,013,360
2.5% of Total Taxable Assessed Base in Excess of
Total Outstanding and New General Obligation Debt $ 88,668,308 $ 78,292,035 $ 69,489,058
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 4 8,650 4 7,899
$3,000 Per Capita $ 3,000 $ 3 ,000 $ 3 ,000
$ 141,273,000 $ 145,950,000 $ 143,697,000
LESS Outstanding and New General Obligation Debt (1) $ 88,408,511 $ 111,231,247 $ 124,013,360
$3,000 Per Capita in Excess of
Total Outstanding and New General Obligation Debt $ 52,864,489 $ 34,718,753 $ 19,683,640
NOTES:
(1) See Table 5 - Total Taxable Assessed Value.
(2) See Note 9 A - Changes in Noncurrent Liabilities.
(3) General Obligation Debt includes debt relating to the Sanitary District, because such debt is backed by the full faith
and credit of the County, but excludes all capital leases, which are collateralized by the equipment purchased with
such leases.
(4) See Table 14 - Population.
In May, 2013, as described in Note 9 E, Queen Anne’s County adopted Resolution No. 13-04, thereby continuing
a local debt policy in compliance with Article 95, Section 22F of the Annotated Code of Maryland.
This policy requires that the County’s Director of Budget, Finance and Information Technology take the following steps:
(a) prepare a six-year capital project plan each year;
(b) propose an amount to be transferred from the General Fund operating balance to the General Capital Projects
Fund to serve as pay-as-you-go funding in the latter Fund, in order to lessen the need for future County debt;
(c) limit the County’s non-bonded indebtedness to $8.0 million for general operating expenses or capital
improvements;
(d) certify that the sum of outstanding general bonded debt and any new general obligation debt is 2.5% or less
of the total taxable assessed base and is $3,000 or less per capita; and
(e) review and revise this Debt Policy as necessary, but no later than September 1, 2015.
This policy also stipulates that although there is some flexibility as to the acceptable percentage of debt service to general fund
expenditures, and no absolute limit has been established by the rating agencies or the Government Finance Officers Association,
anything above 12% of total general fund expenditures would be a cause to carefully monitor debt service.
-186-

QUEEN ANNE'S COUNTY, MARYLAND
DEBT CAPACITY
COMPUTATION OF LOCAL DEBT LIMIT
LAST EIGHT FISCAL YEARS
Table 12-b
(CONTINUED)
2012 2013 2014 2015 2016
$ 7,685,372,199 $ 7,620,480,255 $ 7,540,259,768 $ 7,568,705,234 $ 7,626,510,532
2.5% 2.5% 2.5% 2.5% 2.5%
$ 192,134,305 $ 190,512,006 $ 188,506,494 $ 189,217,631 $ 1 90,662,763
$ 18,175,502 $ 16,258,244 $ 14,638,211 $ 14,929,213 $ 1 3,992,498
98,016,519 91,238,855 108,841,719 112,844,838 1 20,891,108
$ 116,192,021 $ 107,497,099 $ 123,479,930 $ 127,774,051 $ 1 34,883,606
$ 75,942,284 $ 83,014,907 $ 65,026,564 $ 61,443,580 $ 5 5,779,157
4 7,798 48,650 48,650 4 8,804 48,517
$ 3 ,000 $ 3,000 $ 3,000 $ 3 ,000 $ 3,000
$ 143,394,000 $ 145,950,000 $ 145,950,000 $ 146,412,000 $ 1 45,551,000
$ 116,192,021 $ 107,497,099 $ 123,479,930 $ 127,774,051 $ 1 34,883,606
$ 27,201,979 $ 38,452,901 $ 22,470,070 $ 18,637,949 $ 1 0,667,394
-187-

QUEEN ANNE'S COUNTY, MARYLAND
DEMOGRAPHIC AND ECONOMIC INFORMATION
PRINCIPAL EMPLOYERS
CURRENT FISCAL YEAR AND NINE YEARS AGO
Table 13
For the Fiscal Year Ended June 30, 2016
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 945 1 8.13%
Chesapeake College 756 2 6.51%
Queen Anne's County Government 466 3 4.01%
S.E.W. Friel 275 4 2.37%
Paul Reed Smith Guitars 236 5 2.03%
Reeb Millwork 180 6 1.55%
Cracker Barrel Old Country Store 170 7 1.46%
Power Electronics 162 8 1.39%
Federal Resources Supply 146 9 1.26%
Tidewater Direct 144 10 1.24%
Total 3,480 29.95%
For the Fiscal Year Ended June 30, 2007
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 923 1 7.86%
Queen Anne's County Government 531 2 4.52%
S.E.W. Friel 275 3 2.34%
Paul Reed Smith Guitars 234 4 1.99%
Chesapeake College 220 5 1.87%
Fisherman's Inn 184 6 1.57%
Reeb Millwork 180 7 1.53%
Acme Markets 177 8 1.51%
Harris Crab House 160 9 1.36%
Genesis Healthcare 150 10 1.28%
Total 3,034 25.83%
Source: Queen Anne's County Economic Development Office; Table 15.
-188-

QUEEN ANNE'S COUNTY, MARYLAND
DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Table 14
Average
Total Registered
Fiscal Personal Per Capita Unemployment Number of
Year Population (1) Income (2) Income (3) Rate (3) Pupils (4)
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 7.00% 7,774
2010 48,650 1,721,674,850 35,389 7.00% 7,723
2011 47,899 1,722,448,040 35,960 7.20% 7,722
2012 47,798 1,672,547,616 34,992 6.50% 7,757
2013 48,650 1,757,238,000 36,120 6.40% 7,717
2014 48,650 1,771,687,050 36,417 5.10% 7,720
2015 48,804 1,854,356,784 37,996 4.90% 7,752
2016 48,517 1,862,664,664 38,392 3.90% 7,738
NOTES:
(1) Source: Queen Anne's County Division of Land Use and Zoning
(2) Personal income derived by multiplying population by per capita income.
(3) Source: Maryland Department of Labor, Licensing, and Regulation - as of June.
(4) Source: Queen Anne's County Board of Education.
-189-

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME EQUIVALENTS
LAST TEN FISCAL YEARS
Table 15
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Number of Exempt Employees 36 31 29 29 26 26 28 29 30 32
Number of Full Time Employees 460 470 464 450 400 386 391 393 416 431
Number of Part Time Employees (FTE) 25 20 18 17 10 9 8 7 3 3
Total County Government Employees 521 521 511 496 436 421 427 429 449 466
NOTES:
Source: Queen Anne's County Office of Budget, Finance and Information Technology.
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QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME ONLY BY FUNCTION
LAST TEN FISCAL YEARS
Table 16
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Governmental Activities:
General Government 90 90 89 87 77 74 8 2 77 81 8 3
Public Safety:
Police 49 53 52 50 49 53 5 6 58 58 5 9
Fire - Emergency Management Services 69 68 69 67 64 61 6 4 67 71 7 2
Detention Center 37 38 42 42 41 42 4 1 41 41 4 1
Animal Services 11 11 8 8 10 10 6 3 3 2
Public Works 87 91 85 79 61 51 5 1 54 58 6 1
Health 1 1 1 1 1 1 1 1 1 1
Social Services 40 38 38 37 32 36 3 2 36 38 4 2
Parks (1) 44 44 45 45 31 27 2 7 29 39 4 2
Conservation of Natural Resources 3 3 3 3 3 3 4 4 3 4
Economic/Community Development 12 12 10 9 7 3 6 2 3 6
Total Governmental Activities 443 449 442 428 376 361 3 70 372 396 4 13
Business-Type Activities:
Sanitary District 47 46 45 45 44 45 4 5 46 46 4 6
Bay Bridge Airport 3 3 3 3 3 3 1 1 1 1
Golf - - - - - - 1 1 1 1
Public Landings 3 3 3 3 3 3 2 2 2 2
Total Business-Type Activities 53 52 51 51 50 51 4 9 50 50 5 0
Total Full-Time County Employees 496 501 493 479 426 412 4 19 422 446 4 63
NOTES:
(1) Due to the consolidation of the Property Management and Recreation enterprise funds with the General Fund in
fiscal year 2013, the respective employees of those funds are now reported with the Parks function of the Governmental Activities.
- 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.
- Employees of the County's component units have been excluded from this table.
Source: Queen Anne's County Office of Budget, Finance and Information Technology.
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QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Table 17
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Governmental Activities:
General Government:
Planning & Zoning:
Number of commercial permits issued 235 23 40 35 27 99 75 51 52 50
Number of residential permits issued:
Single Family Permits 160 138 90 153 106 119 161 133 123 84
Multi Family Permits - - 13 28 4 20 21 12 - 1
Renovations and Additions Permits 541 539 324 304 295 207 312 327 270 303
Total residential permits issued 701 677 427 485 405 346 494 472 393 388
Public Safety:
Fire and Rescue:
Number of volunteer members 600 663 663 689 689 689 689 689 683 500
Police:
Uniformed Police Officers 49 53 54 54 55 59 61 61 64 64
Number of law violations:
Physical arrests 1,413 1,373 1,429 917 1,216 848 1,144 1,239 1,055 903
Traffic violations 5,310 5,745 8,276 6,183 5,760 5,818 5,915 6,514 6,030 8,002
Detention Center:
Detention Center Officers 33 35 37 39 40 38 40 41 41 39
Average yearly prison population 1 13 1 12 97 102 103 86 128 138 123 115
Public Works:
Wastewater Treated - Daily (mgd) 1.5 1.6 1.7 2.1 1.7 1.9 2.0 2.0 2.1 2.0
Education:
Number of Personnel
Teachers 501 522 528 533 530 537 546 550 575 575
Administrators 40 40 38 37 37 39 39 41 40 40
Support 327 338 338 336 310 300 294 344 295 296
Other 55 77 76 76 64 47 47 37 34 34
Number of Students 7,774 7,790 7,774 7,723 7,722 7,757 7,717 7,720 7,752 7,738
Number of High School Graduates 563 560 590 562 566 598 537 605 589 532
NOTES:
Source: Various County departments.
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QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Table 18
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Governmental Activities:
Public Safety:
Fire and Rescue:
Number of volunteer stations 1 0 1 0 10 10 10 10 9 9 9 9
Equipment:
Engines 1 6 1 6 16 17 17 17 18 17 16 16
Tankers 9 9 9 9 9 9 9 8 8 8
Aerial Units 4 4 4 5 5 5 5 4 4 5
Rescue Units 5 6 6 7 7 7 8 6 7 6
Brush Units 8 8 8 8 8 8 8 7 7 7
Air Units (MD State Police) 1 3 3 - - - - - - -
Boats 3 1 1 5 5 5 5 6 6 6
Ambulance/Medic Units 2 0 1 6 16 17 17 17 17 13 14 12
Cars/Other 1 6 1 7 17 22 22 22 22 25 25 25
Police:
Number of Stations 1 1 1 1 1 1 1 1 1 1
Number of Vehicles
Patrol 54 57 64 60 53 62 62 68 68 71
Other 15 7 13 17 21 3 3 12 15 10
Detention Center
Capacity 104 104 104 148 148 148 148 148 148 148
Public Works:
County Maintained Roads and Streets
Paved (miles) 536 530 539 540 540 540 541 543 543 540
Unpaved (miles) 12 15 12 12 12 12 12 12 12 12
County Owned Water and
Wastewater Facilities
Water
Miles of Mains 51 56 57 58 59 59 61 62 62 64
Water Treatment Plants 10 11 11 11 11 11 11 11 11 11
Booster Stations 2 2 2 2 2 2 2 2 2 2
Wastewater
Miles of Mains 109 114 116 117 118 118 120 121 122 128
Wastewater Treatment Plants 1 1 1 1 1 1 1 1 1 1
Wastewater Collection, Lift,
and Pumping Stations 29 31 31 31 31 31 31 31 31 31
Education:
Number of Schools
High Schools 2 2 2 2 2 2 2 2 2 2
Middle Schools 3 3 4 4 4 4 4 4 4 4
Elementary Schools 8 8 8 8 8 8 8 8 8 8
Parks and Recreation:
Parks 29 32 33 33 33 33 33 33 33 32
Park Acreage 2,572 2,633 2,633 2,915 2,915 2,915 2,915 2,915 2,915 2,902
Public Landings 21 21 20 20 21 21 19 20 20 19
Library:
Number of Libraries 3 3 3 3 3 3 3 3 3 3
NOTES:
Source: Various County departments.
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