Fiscal Year 2011 CAFR (PDF)

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QUEEN ANNE'S COUNTY, MARYLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2011
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal 1-5
Certificate of Achievement for Excellence in Financial Reporting 7
Organization Chart 8
Certain Elected and Other Officials 9
FINANCIAL SECTION
Independent Auditor's Report 11-12
Management's Discussion and Analysis (required supplementary information) 13-33
BASIC FINANCIAL STATEMENTS 35
Government-Wide Financial Statements
Statement of Net Assets 36-37
Statement of Activities 38-39
Governmental Fund Financial Statements
Balance Sheet 40-41
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets 43
Statement of Revenues, Expenditures and Changes in Fund Balances 44-45
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 46-47
Enterprise Fund Financial Statements
Statement of Net Assets 48-49
Statement of Revenues, Expenses, and Changes in Fund Net Assets 50-51
Statement of Cash Flows 52-53
Fiduciary Fund Statements
Statement of Fiduciary Net Assets 54
Statement of Changes in Fiduciary Net Assets 55
Notes to Financial Statements 56-110
REQUIRED SUPPLEMENTARY INFORMATION 111
Other Post-Employment Benefits (OPEB) Trust
Schedule of Funding Progress and Schedule of Participating Agencies' Contributions 112-113
Budgetary Comparisons for General and Major Special Revenue Funds 114
General Fund
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 115
Schedule of Revenues and Other Financing Sources - Budgetary Basis 116-117
Schedule of Expenditures and Other Financing Uses - Budgetary Basis 118-119
Roads Board Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 120

QUEEN ANNE'S COUNTY, MARYLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2011
TABLE OF CONTENTS (CONTINUED)
Page(s)
FINANCIAL SECTION (CONTINUED)
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
(SUPPLEMENTARY INFORMATION) 121
Non-Major Governmental Funds 123-125
Combining Balance Sheet 126-128
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 130-132
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budgetary Basis 134-138
Capital Projects Funds 139
Schedule of Appropriations and Expenditures 140-142
School Impact Fees Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 143
Non-Major Enterprise Funds 145-147
Combining Statement of Net Assets 148-149
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 150-151
Combining Statement of Cash Flows 152-153
Fiduciary Funds 155-157
Other Post-Employment Benefit Trust Fund
Combining Statement of Fiduciary Net Assets 158
Combining Statement of Changes in Fiduciary Net Assets 159
Agency Funds
Statement of Agency Funds Assets and Liabilities 161
Statement of Changes in Agency Funds Assets and Liabilities 162-163
Community Partnerships for Children Special Revenue Fund 165
Combining Balance Sheets - By Grantor 166-167
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
By Community Partnership Agreements (CPA) and
Non-Community Partnership Agreements (Non-CPA) 168-171
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budgetary Basis 172-173
STATISTICAL SECTION (UNAUDITED) 175
Table
1 Net Assets by Component - Government-Wide 176-177
2a Changes in Net Assets - Government-Wide 178-181
2b General Tax Revenues - Governmental Activities 182
3 Fund Balances - Governmental Funds 183
4 Changes in Fund Balances - Governmental Funds 184-185
5 Assessed Value of Taxable and Exempt Property 187
6a Real Property Tax Rates - County Direct Rate 188
6b Real Property Tax Rates - County Special Taxing Districts 189
6c Real Property Tax Rates - Overlapping Governments - Towns 190-191
7 Ten Highest Commercial Property Taxpayers 192
8 Property Tax Levies and Collections 193
9 Ratios of Outstanding Debt by Type 194
10 Ratios of General Bonded Debt Outstanding 195
11 Computation of Net Direct and Overlapping Debt 197
12a Computation of Legal Debt Margin 198-199
12b Computation of Local Debt Limit 200
13 Principal Employers 201
14 Demographic Statistics 202
15 County Government Employees - Full-Time Equivalents 204
16 County Government Employees - Full-Time Only by Function 205
17 Operating Indicators by Function 206
18 Capital Asset Statistics by Function 207

Introductory Section

QUEEN ANNE’S COUNTY DEPARTMENT
OF BUDGET AND FINANCE
THE LIBERTY BUILDING
107 N. LIBERTY STREET
CENTREVILLE, MARYLAND 21617
TAX DIVISION (410) 758-0414 FAX: (410) 758-4405
ACCOUNTING (410) 758-4064 FAX: (410) 758-3036
COUNTY COMMISSIONERS ——————————————————
TDD (410) 758-2126 www.qac.org JONATHAN R. SEEMAN
STEVEN J. ARENTZ – AT LARGE DIRECTOR
DAVID L. DUNMYER – DISTRICT 1
BOB SIMMONS – DISTRICT 2
PHILIP L. DUMENIL – DISTRICT 3 MARIE K. LANGE
DAVE OLDS – DISTRICT 4 CHIEF TREASURY OFFICER
GREGG A. TODD, COUNTY ADMINISTRATOR
MARGIE A. HOUCK, EXECUTIVE ASSISTANT TO COUNTY COMMISSIONERS
December 21, 2011
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, 2011.
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 Clifton Gunderson LLP, a firm
of licensed certified public accountants. The goal of the independent audit is to provide
reasonable assurance that the financial statements of Queen Anne’s County, for the fiscal year
ended June 30, 2011, are free of material misstatement. The independent audit involves
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent
auditor concluded, based upon the audit, that there was a reasonable basis for rendering an
unqualified opinion that Queen Anne’s County’s financial statements for the fiscal year ended
June 30, 2011, 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 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 47,899 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, and certain
recreational facilities as Enterprise Funds.
The appropriated annual budget is prepared by fund, function (e.g. public safety), and
department (e.g. detention center). Department Heads may make transfers of appropriations
within a department of up to $10,000 with the approval of the County Administrator. Transfers
of appropriations or appropriation of new revenues in excess of $10,000 requires the approval
of the County Commissioners. Budget to actual comparisons are provided in this report for
individual governmental funds for which an appropriated annual budget has been adopted.
The budget comparisons for the general fund and the roads board are presented on pages 115
to 120 as part of the Required Supplementary Information portion of this report. For non-major
funds with appropriated annual budgets, budget to actual comparisons are presented in the
Supplementary Information subsection of this report on pages 134 to 138; on page 143; and on
pages 172 to 173.
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ECONOMIC OUTLOOK AND CONDITION
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which Queen
Anne’s County operates.
The unemployment rate for Queen Anne’s County is typically below the state and national
averages, as shown in the chart below. The June 2011 rate for the County was 7.0%,
compared to the state’s rate of 7.4% and the U.S.’s rate of 9.2%. The 2011 average rate for
the County was 6.7%.
Unemployment Rate
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Jun‐05 Dec‐05 Jun‐06 Dec‐06 Jun‐07 Dec‐07 Jun‐08 Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10 Jun‐11
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.
Three of the five largest employers are governmental units, including the County, the Board of
Education, and Chesapeake College. There is a small, but growing, base of specialty
manufacturers. In addition, the County’s proximity to the Western Shore enables nearly 60% of
the workforce to commute to locations outside the County, primarily to higher paying jobs in the
Baltimore and Washington areas.
Property taxes increased by 1.4% in fiscal year 2011. In the fiscal year 2012 budget, there is a
projected 9.6% increase in property tax revenue, due to the increase in the property tax rate,
from $0.7671 to $0.8471 per $100 of assessed value, effective July 1, 2011. Local income tax
is the County’s other main revenue source. Income tax collections were relatively stable in
fiscal year 2011, when compared to the previous year, with a decrease of less than one
percent. Due to an increase in the income tax rate, the fiscal year 2012 projections for income
tax represent a 5.3% increase from fiscal year 2011 collections. The rate increased from
2.85% to 3.2%, effective January 1, 2012.
County revenues related to housing activity continue to be affected by the bursting of the real
estate bubble that began in fiscal year 2006. Recordation tax revenue, a leading indicator of
the health of the local real estate market, decreased by 3.3% from the prior fiscal year.
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LONG TERM FINANCIAL PLANNING
Rainy Day Fund – In calendar year 2002, the County adopted Ordinance No. 02-08 to
establish a Rainy Day Fund. The ordinance required that the County maintain a fund balance
reserve for contingencies in an amount equal to 7% of general fund operating revenues
budgeted for the following fiscal year. In fiscal year 2011, the County adopted Ordinance No.
11-05, which served the purpose of eliminating the requirements for reserve fund balance for
contingencies in Queen Anne’s County which are not in compliance with Governmental
Accounting Standards Board (GASB) Statement No. 54. Therefore, for the year ended June
30, 2011, Queen Anne’s County does not have a rainy day fund. However, the County
Commissioners are working with the Finance Office in efforts to reestablish sufficient levels of
reserves in compliance with GASB requirements.
Capital Projects - The County Commissioners’ six-year capital program, starting with fiscal
year 2012, prioritizes capital expenditures over these years to meet the County’s needs. The
six-year program includes: $13.5 million for renovation of various school facilities; $12.6 million
for the Bay Bridge Airport; $8.9 million for emergency services; and $6.3 million for a new
community swimming pool. Offsetting nearly 97% of the Airport’s capital costs, $12.2 million in
grants and other non-operating, non-debt resources are anticipated. Another $6.3 million in
grants will cover 100% of the costs for the community swimming pool.
Task Force on Government Sustainability – On December 28, 2010, the Commissioners
established a Task Force on Government Sustainability, which consisted of seven citizens and
two commissioner representatives tasked with reviewing existing County functions/services
and recommending steps to ensure the long-term sustainability of County government. The
Task Force was divided into three subcommittees: County functions, Public Safety, and Board
of Education. Each subcommittee reviewed vital topics and presented recommendations to the
County Commissioners. Before issuing the recommendations, the Task Force met publically
on eleven separate occasions. The recommendations were considered as part of the
Commissioners’ budget deliberations, and incorporated into the adoption of the fiscal year
2012 budget.
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.
Debt Management Policy – In calendar year 2009, the County adopted Resolution 09-13,
which establishes the County’s Local Dept Policy. In accordance with this policy, the Director
of Finance is responsible for following certain procedures to ensure that debt limits established
by the Policy are not exceeded. A key element of the Policy is that prior to 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.
For fiscal year 2011, Queen Anne’s County general obligation debt was 1.38% of the total
taxable assessable base, and the per capita debt measurement was $2,236. Both thresholds
are well below the policy limits. In addition, general bonded debt outstanding, as a percentage
of total taxable assessable base, has improved over the last ten fiscal years, from 1.88% in
fiscal year 2002 to 1.38% in fiscal year 2011.
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QUEEN ANNE’S COUNTY, MARYLAND
GOVERNMENTAL ORGANIZATION
CERTAIN ELECTED AND OTHER OFFICIALS
AS OF JUNE 30, 2011
CERTAIN ELECTED OFFICIALS
County Commissioners Steven J. Arentz, At Large
David L. Dunmyer, District 1
Bob Simmons, District 2
Philip L. Dumenil, District 3
David Olds, 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 J. Steve Cohoon
Director of Community Services Catherine R. Willis
Director of Budget and Finance Jonathan R. Seeman
Chief Treasury Officer Marie K. Lange
County Attorney Patrick E. Thompson, Esq.
Independent Auditor Bond Counsel Financial Advisor
Clifton Gunderson LLP McKennon, Shelton Public Advisory Consultants
Certified Public Accountants & Henn, LLP Baltimore, Maryland
Timonium, Maryland Baltimore, Maryland
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Independent Auditor’s Report
The Board of Commissioners
of Queen Anne's County, Maryland
Centreville, Maryland
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of Queen Anne’s County, Maryland (the County)
as of and for the year ended June 30, 2011, which collectively comprise the County’s basic
financial statements as listed in the table of contents. These financial statements are the
responsibility of County’s management. Our responsibility is to express opinions on these
financial statements based on our audit. We did not audit the component unit financial
statements of the Board of Education of Queen Anne’s County and the Queen Anne’s County
Free Library, which comprise 88% of the assets, 88% of the net assets and 97% of the revenues
of the discretely presented component units. Those financial statements were audited by other
auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to
the amounts included for the above mentioned component units, is based solely on the reports of
the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion, based on our audit and the reports of other auditors, the financial statements
referred to above present fairly, in all material respects, the respective financial position of the
governmental activities, the business-type activities, the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information of the County
as of June 30, 2011, and the respective changes in financial position and cash flows, where
applicable, for the year then ended in conformity with accounting principles generally accepted
in the United States of America.
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In accordance with Government Auditing Standards, we have also issued our report dated
December 20, 2011 on our consideration of the County’s internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts and
grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
The Management’s Discussion and Analysis; Schedule of Funding Progress; Schedule of
Participating Agencies’ Contributions; and Schedule of Revenues, Expenditures, Other
Financing Sources and Changes in Fund Balance – Budget and Actual – General Fund and
Roads Board Special Revenue Fund as referenced in the table of contents are not a required part
of the basic financial statements but are supplementary information required by accounting
principles generally accepted in the United States of America. We have applied certain limited
procedures, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of the required supplementary information. However, we did not
audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County’s basic financial statements. The introductory section,
combining and individual fund financial statements and supplementary schedules listed as
supplementary data, and statistical section, as listed in the table of contents are presented for
purposes of additional analysis and are not a required part of the basic financial statements. The
combining and individual fund financial statements and supplementary schedules, listed as
supplementary data have been subjected to the auditing procedures applied in the audit of the
basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation
to the basic financial statements taken as a whole.
The introductory section and statistical tables listed in the table of contents have not been
subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we express no opinion on them.
a1
Baltimore, Maryland
December 20, 2011
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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, 2011. 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.
Adoption of new GASB Statements
During fiscal year 2011, the County adopted GASB Statement No. 54, Fund Balance Reporting
and Governmental Fund Type Definitions. GASB 54 establishes standards for fund balance
classifications that comprise a hierarchy based primarily on the extent to which a government is
bound to observe constraints imposed upon the use of resources reported in governmental funds.
Additionally, the definitions of a general fund, special revenue fund, capital projects fund, debt
service fund, and permanent fund are clarified by the provisions in this Statement. Under the new
standard, the County recorded fund balance into five new classifications: nonspendable,
restricted, committed, assigned and unassigned.
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 assets presents information on all of Queen Anne’s County Government’s
assets and liabilities, with the difference between the two reported as net assets. Over time,
increases or decreases in net assets may serve as a useful indicator of whether the financial
position and condition of Queen Anne’s County Government is improving or deteriorating.
The statement of activities presents information showing how the government’s net assets
changed during the most recent fiscal year. All changes in net assets are reported as soon as
the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will only
result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused
vacation leave).
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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, parks and recreation, library,
conservation of natural resources, and economic and community development. The business-
type activities of Queen Anne’s County Government include water and sewer services, an airport,
public marinas, parks, and various recreational facilities.
The government-wide financial statements include not only Queen Anne’s County Government
itself (known as the primary government), but also legally separate component units. Queen
Anne’s County Government has the following discretely presented component units: Queen
Anne’s County Board of Education, Queen Anne’s County Free Library, and the Queen Anne’s
County Public Housing Authority. Financial information for these component units is reported
separately from the financial information presented for the primary government itself. The
government-wide financial statements can be found on pages 36 to 39 of this report.
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, with basic statements found on pages 40 to 55.
Governmental funds: Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near term inflows and outflows of spendable resources available at the end
of the fiscal year. Such information may be useful in evaluating a government’s near term
financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government’s near term
financing decisions. Both the balance sheet for governmental funds and the statement of
revenues, expenditures, and changes in fund balances for governmental funds provide a
reconciliation to facilitate this comparison between governmental funds 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 on pages 43 and 46 to
47.
Queen Anne’s County maintains three types of governmental funds: the general fund, a variety
of special revenue funds, and five capital project funds. Information is presented separately in
the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for all governmental funds. Fund type is identified
for each fund.
Queen Anne’s County adopts an annual appropriated budget for its general fund; school, fire, and
parks impact fee capital projects funds; and the following special revenue funds: roads board,
department of aging, housing and community services, community partnerships for children,
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dredging special assessments, Kent Narrows, law library, inmate welfare, agricultural transfer,
rural legacy, and purchase of development rights. A budgetary comparison statement has been
provided for each of these funds, which can be found on pages 115 to 120; 134 to 138; 143; and
172 to 173 of this report.
Proprietary funds: Queen Anne’s County maintains enterprise funds to report the same
functions presented as business-type activities in the government-wide financial statements.
Queen Anne’s County Government uses enterprise funds to account for its water and sewer
services, airport, marinas, parks, and other recreational facilities. The basic proprietary fund
financial statements can be found on pages 48 to 53 of this report, as well as non-major
statements on pages 148 to 153.
Fiduciary funds: Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statements because the resources of those funds are not available to support Queen
Anne’s County Government’s own programs. The County acts as a fiduciary for two trust and six
agency funds. The accounting used for fiduciary funds is much like that used for proprietary
funds. The basic fiduciary fund financial statements can be found on pages 54 to 55 of this
report, while further detail can be found on pages 158 to 163.
Notes to the financial statements: The notes provide additional information that is essential to
a full understanding of the data provided in the government-wide and fund financial statements.
The notes to the financial statements can be found on pages 56 to 110 of this report.
Government-wide Financial Analysis
Statement of Net Assets
A summary of government-wide assets, liabilities, and net assets is as follows:
Governmental Activities Business Type Activities Total
Summary of Net Assets 2011 2010 2011 2010 2011 2010
Current and Other Assets $ 66,453,636 $ 6 2,893,658 $ 23,992,122 $ 25,185,923 $ 9 0,445,758 $ 88,079,581
Capital Assets 1 43,875,958 1 43,124,217 97,987,069 1 00,360,772 2 41,863,027 243,484,989
Total Assets 210,329,594 2 06,017,875 121,979,191 125,546,695 3 32,308,785 331,564,570
Noncurrent liabilities 119,962,802 1 00,708,984 23,137,941 23,470,640 1 43,100,743 124,179,624
Other liabilities 1 0,886,689 7 ,112,156 3,950,284 4 ,862,873 1 4,836,973 11,975,029
Total Liabilities 130,849,491 1 07,821,140 27,088,225 28,333,513 1 57,937,716 136,154,653
Net assets:
Invested in capital assets, net
of related debt 118,274,533 1 21,702,025 78,069,061 79,032,373 1 96,343,594 200,734,398
Restricted 22,399,514 2 2,290,307 16,821,905 18,180,809 3 9,221,419 40,471,116
Unrestricted ( 61,193,944) (45,795,597) - - (61,193,944) (45,795,597)
Total Net Assets $ 79,480,103 $ 9 8,196,735 $ 94,890,966 $ 97,213,182 $ 1 74,371,069 $ 195,409,917
The County’s total current and other assets increased by $2.4 million, or 2.7 percent, to $90.4
million. The County’s total assets exceeded its liabilities at the close of fiscal year 2011 by
$174.4 million.
Net assets are divided into three categories: invested in capital assets (net of related debt);
restricted net assets; and unrestricted net assets. By far, the largest portion, $196.3 million, of
the County’s total net assets reflects its investment in capital assets (e.g. land, buildings,
machinery and equipment, vehicles, and infrastructure), less any related and outstanding debt
used to construct or acquire those assets. The County uses these capital assets to provide
services to citizens; consequently, they are not available for future spending. Although the
County’s investment in its capital assets is reported net of related debt, it should be noted that the
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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 $72.4 million at June 30, 2011. Absent the effect of this relationship, the County
would have reported positive unrestricted net assets of $11.2 million on its government-wide
financial statements, rather than the negative unrestricted net assets of $61.2 million reported
herein. For a multi-year view of this calculation, see the Footnote presented in Table 1 of the
Statistical Section.
An additional $39.2 million of the County’s total net assets represents resources that are subject
to restrictions on how they may be used. For governmental activities, this amount includes:
$16.7 million of unspent bond proceeds restricted for specific capital projects; $2.4 million
restricted for programs related to conservation of natural resources; $1.0 million for impact fee
balances; $735 thousand related to Housing and Community Services; and an additional $1.6
million for other restrictions. For business-type activities, this amount includes: $6.4 million
restricted for subsequent year operations in those enterprise funds not reported separately in the
following restricted amounts; $6.4 million in allocations restricted for Sanitary District capital
projects or debt service; $3.2 million restricted to meet Sanitary District debt covenants; and $753
thousand restricted by Sanitary District developer exaction project requirements.
At the end of the current fiscal year, Queen Anne’s County Government reports positive balances
in two out of three categories of net assets, both for the government as a whole, as well as for its
separate governmental activities. Business-type activities report all non-capital net assets as
restricted, due to the inherent nature of those activities, and show a positive balance in both
categories.
- 16 -

Statement of Activities
The following table summarizes changes in net assets for governmental and business-type
activities during the year:
Governmental Activities Business Type Activities Total
Summary of Changes in Net Assets 2011 2010 2011 2010 2011 2010
Revenues:
Program revenues:
Charges for services $ 4,141,854 $ 4,518,799 $ 9,883,640 $ 9,970,816 $ 14,025,494 $ 14,489,615
Operating grants and contributions 6,000,107 6,698,744 59,528 203,269 6,059,635 6,902,013
Capital grants and contributions 3,551,752 8,460,623 2,070,839 2,562,943 5,622,591 11,023,566
General revenues:
Property taxes 60,070,368 59,267,240 - - 60,070,368 59,267,240
Local income tax 30,624,679 25,715,247 - - 30,624,679 25,715,247
Other local taxes
Admission and amusement taxes 188,715 208,736 - - 188,715 208,736
Recordation taxes 3,609,751 3,734,340 - - 3,609,751 3,734,340
Hotel taxes 441,123 397,141 - - 441,123 397,141
County transfer taxes 1,158,897 1,147,179 - - 1,158,897 1,147,179
Investment income 136,523 144,553 407,629 436,045 544,152 580,598
Gain on sale of capital assets 281,158 2 6,731 - - 281,158 26,731
Miscellaneous 711,868 786,719 884,772 962,540 1,596,640 1,749,259
Total Revenues 110,916,795 111,106,052 13,306,408 14,135,613 124,223,203 125,241,665
Expenses:
Governmental Activities:
General government 15,968,633 14,089,387 - - 15,968,633 14,089,387
Public safety 25,413,678 25,361,341 - - 25,413,678 25,361,341
Public works 9,098,949 9,432,489 - - 9,098,949 9,432,489
Health 1,701,677 1,663,321 - - 1,701,677 1,663,321
Social services 5,001,240 5,554,667 - - 5,001,240 5,554,667
Education 57,506,341 53,491,659 - - 57,506,341 53,491,659
Parks and recreation 3,090,228 3,618,427 - - 3,090,228 3,618,427
Libraries 1,457,336 1,473,689 - - 1,457,336 1,473,689
Conservation of natural resources 3,811,748 5,281,372 - - 3,811,748 5,281,372
Economic and Community development 1,893,570 2,001,306 - - 1,893,570 2,001,306
Interest and fiscal charges 4,078,105 3,510,678 - - 4,078,105 3,510,678
Business-type Activities:
Water and sewer - - 10,905,989 10,610,705 10,905,989 10,610,705
Parks and recreation - - 4,099,507 2,789,901 4,099,507 2,789,901
Public marinas - - 67,395 96,739 67,395 96,739
Airport - - 1,167,655 1,017,780 1,167,655 1,017,780
Total Expenses 129,021,505 1 25,478,336 16,240,546 14,515,125 145,262,051 139,993,461
Decrease in Net Assets before Transfers ( 18,104,710) (14,372,284) (2,934,138) (379,512) (21,038,848) (14,751,796)
Transfers in (out) ( 611,922) (559,331) 611,922 559,331 - -
Increase (Decrease) in Net Assets ( 18,716,632) (14,931,615) ( 2,322,216) 179,819 (21,038,848) (14,751,796)
Net Assets - Beginning of Year 98,196,735 113,128,350 97,213,182 97,033,363 195,409,917 210,161,713
Net Assets - End of Year $ 79,480,103 $ 98,196,735 $ 94,890,966 $ 97,213,182 $ 174,371,069 $ 195,409,917
- 17 -

Governmental activities:
Revenues for governmental activities were $110.9 million for fiscal year 2011. The following
chart depicts revenues by source for governmental activities:
Revenues by Source -
Governmental Activities
For the Year Ended June 30, 2011
Investment Income
County
0.12%
transfer taxes
1.05% Gain on Sale of
Capital Assets
Miscellaneous
0.25%
Recordation 0.64%
taxes Hotel taxes
3.25% 0.40% Charges for services
3.74%
Admission and
amusement taxes
Operating, capital &
0.17%
restricted grants
8.61%
Local income tax
27.61%
Property taxes
54.16%
• Taxes comprise the largest source of County revenue, totaling $96.1 million (86.6
percent) of total revenue for fiscal year 2011. Of that amount, property and local income
tax together yielded $90.7 million (81.8 percent) of all revenue. Each County sets its own
property and income tax rates, within parameters established by the State. For fiscal
year 2011, the County’s property tax rate was set at $.7671 per $100 of assessed value
of real property, based on full cash value of that property. This was a slight decrease
from the fiscal year 2010 rate of $.770 per $100 of assessed value of real property. The
County’s local income tax rate remained at 2.85 percent of the State taxable income for
calendar years 2011 and 2010. There is no local sales tax in the State of Maryland.
• Operating grants and contributions, totaling $6.0 million, reflect grants from Federal and
State agencies that support specific County programs. Programs that benefitted the
most were: social services ($2.1 million or 34.2 percent) and public safety ($1.5 million or
24.4 percent).
• Charges for services, totaling $4.1 million, reflect fees charged to County citizens. These
primarily support public safety ($1.1 million or 26.3 percent), general government ($1.1
million or 26.3 percent), public works ($872 thousand or 21.1 percent); and education
functions ($755 thousand or 18.2 percent).
• Capital grants and contributions, totaling $3.6 million, reflect contributions from Federal
and State agencies, as well as developers. Capital activities that benefit the most this
year are: conservation of natural resources ($1.9 million or 54.2 percent) and public
works ($901 thousand or 25.4 percent).
- 18 -

Expenses for all governmental activities were $129.0 million for fiscal year 2011. The following
chart depicts expenses by function for governmental activities:
Expenses -
Governmental Activities
For the Year Ended June 30, 2011
Economic and
Community
Interest and fiscal
development
Conservation of 1.47% charges
natural resources 3.16%
2.95% General
government
Libraries 12.38%
1.13%
Parks and recreation Public safety
2.39% 19.70%
Public works
Education 7.05%
44.57% Health
1.32%
Social services
3.88%
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 $57.5 million (44.6 percent). In order of priority,
public safety expenses totaled $25.4 million (19.7 percent); general government expenses were
$16.0 million (12.4 percent); public works and roads expenses were $9.1 million (7.0 percent);
social services expenses totaled $5.0 million (3.9 percent); conservation of natural resources
were $3.8 million (2.9 percent); parks and recreation expenses were $3.1 million (2.4 percent);
economic and community development expenses were $1.9 million (1.5 percent); and other
expenses were $7.2 million (5.6 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 2011 2010 2011 2010 2011 2010
Education $ 57,506,341 $ 53,491,659 $ 755,443 $ 1,285,201 $ (56,750,898) $ (52,206,458)
Public Safety 25,413,678 25,361,341 2,634,510 3,457,898 (22,779,168) (21,903,443)
General Government 15,968,633 14,089,387 1,899,088 1,852,149 (14,069,545) (12,237,238)
Public Works 9,098,949 9,432,489 2,320,360 1,688,797 (6,778,589) (7,743,692)
Social Services 5,001,240 5,554,667 2,335,192 5,422,585 (2,666,048) (132,082)
Conservation of Natural Resources 3,811,748 5,281,372 3,004,963 4,385,045 (806,785) (896,327)
Parks and Recreation 3,090,228 3,618,427 389,467 932,408 (2,700,761) (2,686,019)
Economic and Community Development 1,893,570 2,001,306 354,690 654,083 (1,538,880) (1,347,223)
Other 7,237,118 6,647,688 - - (7,237,118) (6,647,688)
Total $ 129,021,505 $ 125,478,336 $ 13,693,713 $ 19,678,166 $ (115,327,792) $ (105,800,170)
- 19 -

Of the total cost of $129.0 million for governmental activities, $13.7 million (10.6 percent), of
those costs were covered by program-related revenues paid by individuals and external
governmental entities. Of these outside entities, individuals who benefited directly from County
programs were charged user fees of $4.1 million, while governments and other organizations that
benefited indirectly from these programs contributed operating grants of $6.0 million and capital
grants of $3.6 million.
County taxpayers paid for most of the remaining $115.3 million in net program costs, through a
variety of County taxes, for a total of $96.1 million. Net program costs of services provided to the
public, in order of net cost, were: $56.8 million for education; $22.8 million for public safety; $14.1
million for general government; $6.8 million for public works; $2.7 million for parks and recreation;
$2.7 million for social services; $1.5 million for economic and community development; $807
thousand for conservation of natural resources; and $7.2 million for other services. See Changes
in Net Assets and General Fund Budgetary Highlights for further details.
Changes in net assets: Government-wide revenues, less expenses, plus/minus transfers in/out,
yield changes in net assets. During fiscal year 2011, governmental activities decreased the
County’s net assets overall by $18.7 million, compared to a decrease of $14.9 million in fiscal
year 2010. The following discussion explains changes in net assets relative to the prior fiscal
year.
Revenues for governmental activities decreased by $189 thousand (0.2 percent). The following
key revenues changed, when compared to the prior fiscal year:
• Local income tax increased by $4.9 million (19.1 percent), from $25.7 million to $30.6
million. The majority of the increase relates to the local income reserve held by the State
of Maryland for Queen Anne’s County. For fiscal year 2010, the local income tax reserve
held by the State decreased by $4.3 million (compared to fiscal year 2009), and was
reflected in the income tax revenue for the year. However, for fiscal year 2011, the local
income tax reserve increased by $1.4 million when compared to fiscal year 2010.
However, actual receipts for local income tax remained almost constant, with a decrease
of only $120 thousand.
Local Income Tax Reserve - Held by State of Maryland for Queen Anne's County
as of June 30 Tax Year Reserve Percent Change Increase/(Decrease)
2003 2001 $ 7,514,231
2004 2002 9,791,788 30% $ 2,277,557
2005 2003 10,814,022 10% 1,022,234
2006 2004 12,051,523 11% 1,237,501
2007 2005 12,303,288 2% 251,765
2008 2006 12,902,125 5% 598,837
2009 2007 11,695,290 -9% ( 1,206,835)
2010 2008 7,378,018 -37% ( 4,317,272)
2011 2009 8,748,190 19% 1,370,172
• Capital grants and contributions decreased by $4.9 million, from $8.5 million in fiscal year
2010 to $3.6 million in fiscal year 2011. Significant factors influencing this decrease are:
o Social Services decreased by $2.5 million (92.0 percent). Of this decrease, $2.1
million related to the Sudlersville Senior Center, which was constructed as part of a
Public Housing Authority contract, and subsequently donated to the County’s Social
Services department to manage in fiscal year 2010. In addition, $429 thousand was
received in fiscal year 2010 from the American Recovery and Reinvestment Act
(ARRA) of 2009 for the purchase of five buses for the Department of Aging.
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o Conservation of Natural Resources decreased by $2.3 million (54.1 percent), mainly
due to a decrease of $3.7 million in state capital grants related to purchasing
easements as part of the Rural Legacy program. Offsetting this decrease was an
increase of $1.4 million in state capital grants for the purchase of Conservation
Reserve Enhancement Program (CREP) easements.
o Parks and Recreation decreased by $432 thousand (68.4 percent). There were
several capital projects with decreased capital grant and contribution revenue in fiscal
year 2011, as well as other projects with increased capital grant and contribution
revenue. All of these fluctuations relate to the timing of the projects. There were
several projects that closed at the end of fiscal year 2010, and not as many were in
progress during 2011, therefore the net revenue decreased.
o Public Works increased by $637 thousand (241.3 percent), mainly as a result of an
American Recovery and Reinvestment Act (ARRA) grant of $878 thousand received
in fiscal year 2011 for roads capital projects.
• Operating grants and contributions decreased by $700 thousand, from $6.7 million in
fiscal year 2010 to $6.0 million in fiscal year 2011. Key factors for this change are:
o Social Services decreased by $617 thousand (23.1 percent) mainly due to decreased
operating grant funding of $575 thousand for Community Partnerships. The
decrease to Community Partnerships was the result of funding cuts from the State of
Maryland.
o Education decreased by $433 thousand (100 percent). In fiscal year 2010, a State
grant for $433 thousand was received for the renovations at Bayside Elementary
School. There was no such grant in fiscal year 2011.
o Public Safety decreased by $430 thousand (22.7 percent). Although there were
numerous increases and decreases between 2010 and 2011, a few significant
transactions are worth mentioning. First of all, there was a new grant of $365
thousand received in fiscal year 2011 for the Eastern Shore Communications
Alliance. Secondly, a grant of $799 thousand was received in fiscal year 2010 for a
new phone system for Emergency Services, of which there was no similar grant
received in fiscal year 2011.
o Conservation of Natural Resources increased by $913 thousand (981.9 percent) as a
result of federal grant funding of $962 thousand received in fiscal year 2011 for the
purchase of a land conservation easement.
• Gain on sale of capital assets increased by $254 thousand (951.8 percent), from $27
thousand in fiscal year 2010 to $281 thousand in fiscal year 2011. The majority of the
increase related to the sale of land in the Matapeake Business Park. The land was sold
for $350 thousand, which was $190 thousand higher than the basis.
Expenses for governmental activities increased by $3.5 million (2.8 percent) and transfers out to
business-type activities increased by $53 thousand, for a total increase of $3.6 million. Key
positive and negative expense changes, in order of relative importance, are:
• Education expenses increased by $4.0 million (7.5 percent). This increase was primarily
the result of increased expenses relating to school related capital projects. In fiscal year
2011, the expense associated with capital projects for schools was $7.9 million, which
was an increase of $3.5 million from fiscal year 2010. Of the total $7.9 million in fiscal
year 2011, $6.2 million related to the construction of Sudlersville Middle School. In fiscal
year 2010, only $463 thousand was spent on the new middle school. In addition, several
other school related capital projects had fluctuations from the previous year.
- 21 -

• General Government expenses increased by $1.9 million (13.3 percent), which was the
result of the early retirement incentives in fiscal year 2011. The County offered two
separate early retirement incentives during the year to employees who met certain
criteria related to age and length of service. Although approximately $2.4 million in
expenditures (including termination pay, deferred compensation, and other benefit costs)
were incurred to implement the early retirement programs, the County fully expects to
recover these costs and realize substantial savings in the future.
• Conservation of Natural Resources decreased by $1.5 million (27.8 percent) which was
the result of several changes. First, the Agricultural Transfer program did not incur any
expenses in fiscal year 2011; however $1.1 million of expenses was incurred in fiscal
year 2010. Secondly, the Rural Legacy program incurred $1.1 million of expense in fiscal
year 2011, which is a decrease of $2.5 million from the $3.6 million spent on Rural
Legacy in fiscal year 2010. Both of these programs relate to the purchase of easements
that preclude development, and together, they accounted for a decrease in expenses of
$3.6 million in fiscal year 2011 from the prior year. Next, expenses for conservation of
natural resources related to capital projects increased by $2.2 million, all of which relates
to land preservation easements. For many of the easements, including Agricultural
Transfer, Rural Legacy, and capital projects easements, the timing of purchases is
affected by whether land is identified for an easement, and also by the amount of any
potential State funding available.
• Interest and fiscal charges increased by $567 thousand (16.2 percent). This increase
related to the 2009 bonds, of which the interest expense increased by $698 thousand. In
fiscal year 2010, only a partial year’s interest was due, however, a full year’s interest was
due in fiscal year 2011.
- 22 -

Business-type activities:
Revenues, transfers in, and expenses for business-type activities were $13.3 million, $612
thousand, and $16.2 million, respectively, for fiscal year 2011. 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, 2011
Investment
Miscellaneous
income
6.65%
3.06%
Operating & Charges for
capital grants services
& contributions 74.28%
16.01%
Expenses by Service -
Business-Type Activities
For the Year Ended June 30, 2011
Public Airport
marinas 7.19%
0.41% Water and
sewer
67.16%
Parks and
recreation
25.24%
Business-type activities decreased the County’s net assets altogether by $2.3 million in fiscal
year 2011, which was $2.5 million less than the prior year’s increase of $180 thousand. The
fiscal year 2011 change in net assets resulted primarily from:
• Capital grants and contributions decreased by $492 thousand (19.2 percent), from $2.6
million in fiscal year 2010 to $2.1 million in fiscal year 2011. The net decrease in funding
resulted from changes in several projects simply due to the timing of the projects. As the
majority of activity took place in fiscal year 2010 for the new runway project, the Airport
had a decrease of $1.1 million for capital grants. Offsetting the decreases in Airport
capital grants was an increase of $590 thousand for sewer capital projects; and $39
thousand for water capital projects.
- 23 -

• Operating grants and contributions decreased by $143 thousand (70.7 percent), from
$203 thousand in fiscal year 2010 to $60 thousand in fiscal year 2011. Part of this
decrease is the result of reimbursements from FEMA in fiscal year 2010 for the costs
associated with the record breaking snow storms that occurred in December 2009 and
February 2010. In fiscal year 2010, the Sanitary District received $44 thousand from
FEMA and the Airport received $32 thousand, for a total FEMA reimbursement of $76
thousand. No such activity occurred in fiscal year 2011. Also, the Sanitary District had
additional state grant funding in fiscal year 2010 of $54 thousand.
• Operating expenses before transfers increased by $1.7 million (11.9 percent), from $14.5
million in fiscal year 2010 to $16.2 million in fiscal year 2011, for all business-type
activities. Of the total increase in expenses, $1.3 million is related to a loss on disposal
of capital assets for Property Management. As explained later in the capital assets
section of this MD&A, the disposal related to the Bay Model Property. Of the remaining
increase, $226 thousand was caused by a loss on disposal of capital assets due to the
retirement of obsolete Sanitary District infrastructure.
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 $48.7 million, compared to $49.6 million for the prior
year. Approximately 9.6 percent of this total ($4.6 million) constitutes unassigned fund balance,
which is available for spending. The total unassigned fund balance of $4.6 million includes $4.8
million of positive unassigned fund balance for the general fund, which is offset by negative
unassigned fund balances of $172 thousand in the non-major governmental funds. Additional
detail on the negative unassigned balances can be found in Note 15 on page 106.
The nonspendable fund balance, at 9.0 percent of the total fund balance ($4.4 million), is not
available for spending and includes amounts related to inventory and loans receivable.
Restricted fund balance of $22.3 million (45.9 percent) includes amounts that can be spent only
for specific purposes stipulated by external sources or legal restrictions. Committed fund balance
of $2.5 million (5.1 percent) represents those amounts that can be used only for the specific
purposes of the government’s highest level of decision-making authority.
The remaining 30.4 percent of fund balance ($14.8 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 $5.8 million, which is a
decrease of $8.2 million from the fiscal year 2010 balance of $14.0 million.
Of the total $5.8 million in fund balance, $4.8 million is unassigned, meaning that there are no
constraints on how the funds can be spent. During the year, the County decided to eliminate the
requirement to maintain a Rainy day Fund, as the fund did not meet the criteria established for
- 24 -

Rainy Day Funds under GASB Statement No. 54, Fund Balance Reporting and Governmental
Fund Type Definitions. The County Commissioners plan to establish a new Rainy Day Fund in
the future that meets the requirements of GASB Statement No. 54.
The decrease of $8.2 million in the fund balance of the General Fund was primarily due to a
decrease in revenue. Total revenues, including transfers in, for fiscal year 2011 were $100.5
million, which is $7.6 million less than the total revenues of $108.1 million in fiscal year 2010.
Although all revenue sources fluctuated, the noteworthy item to mention is the change in transfers
into the General Fund. In fiscal year 2010, a transfer of $8.3 million was made from the General
Capital Projects Fund to the General Fund and no such transfer was made in fiscal year 2011.
Expenditures also decreased by $376 thousand, from $109.1 million in fiscal year 2010 to $108.7
million in fiscal year 2011. Transfers out decreased by $5.3 million, from $8.2 million in fiscal
year 2010 to $2.9 million in fiscal year 2011. In fiscal year 2010, transfers out included $4.7
million to the Roads Board in an effort to compensate for the decrease in State Shared Highway
User Tax revenue. The General Fund did not transfer any funds to the Roads Board in fiscal year
2011.
Offsetting the decrease in transfers out was an increase in debt service and also in miscellaneous
expense. Debt service increased by $2.4 million; from $8.0 million in fiscal year 2010 to $10.4
million in fiscal year 2011. This increase was the result of payments totaling $2.2 million
(principal and interest) due on the 2009 bonds, of which only a partial interest payment of $553
thousand was due in fiscal year 2010. Also, a payment of $800 thousand was made on a loan
related to property, which there were no principal payments due for this loan last year.
Miscellaneous expense increased from $1.4 million in fiscal year 2010 to $4.7 million in fiscal
year 2011, which is an increase of $3.3 million. There were several increases to various
miscellaneous expenses during the year; however, the most significant was the cost of $2.4
million for the early retirement incentive plans.
For further explanations of General Fund revenues and expenditures, see the General fund
Budgetary Highlights section of this MD&A.
The General Capital Projects Fund accounts for all capital projects related to governmental funds,
except those accounted for in the Roads Capital Projects Fund, which is discussed below.
As of June 30, 2011, the General Capital Projects Fund has a total fund balance of $28.4 million,
compared to $17.7 million at the end of the prior fiscal year. This $10.7 million increase in total
fund balance is comprised of $7.0 million in bond proceeds, which were received but legally
restricted to cover certain on-going projects; $2.7 million assigned to fund future capital projects;
and $1.0 million in commitments by County officials to fund construction of facilities and
infrastructure.
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,
and are financed mostly from roads-related capital grants and roads benefit assessments.
As of June 30, 2011, the Roads Capital Projects Fund has a total fund balance of $4.1 million,
compared to $4.0 million at the end of the prior fiscal year. Of this total $4.1 million fund balance,
$3.3 million has been assigned to fund ongoing projects, while $778 thousand has been
contributed by local developers and is committed to fund certain infrastructure improvements.
The School Impact Fees Capital Projects Fund accounts for financial resources generated by
new residential construction. Those funds are then used for the construction of public school
facilities or payment of debt relating to such construction.
- 25 -

The total fund balance as of June 30, 2011 was $416 thousand, which was a decrease of $652
thousand from the prior year fund balance of $1.1 million. This decrease resulted from a transfer
out of $1.4 million to the General Fund, to cover debt service payments related to school
construction, while only $756 thousand was received during the year. This revenue consists
mainly of impact fee charges, which were $97 thousand lower than received the year before.
The Roads Board Fund accounts for financial resources received from the State, plus a substantial
amount from the County, for the maintenance of County road infrastructure.
The total fund balance as of June 30, 2011 was $1.6 million, which is a decrease of $2.6 million from the
fiscal year 2010 fund balance of $4.2 million. This decrease in fund balance mainly resulted from a
decrease in transfers in for the year. In fiscal year 2010, the County transferred $4.7 million to the Roads
Board Fund from the General Fund; however, there were no transfers in for fiscal year 2011. In addition,
revenue decreased by $66 thousand in fiscal year 2011, compared to the prior fiscal year. This
decrease resulted from a decrease of $217 thousand in Highway User Tax Revenue, which was partially
offset by increases in other revenue sources.
Offsetting a portion of the decreases in revenue and transfers in was a decrease of $820 thousand in
operating expenditures when compared to the prior fiscal year, and also a decrease in transfers out in
the amount of $445 thousand. The decrease in operating expenditures results from the County’s
decision to complete only crucial tasks during the year, while curtailing routine maintenance. This
decision was made as a result of the State virtually ceasing to share State levied Highway User Tax
revenue with its counties, starting early in fiscal year 2010. Given the drastic cuts in Highway User Tax
revenue and a persistently soft economy, the County only has resources to maintain the roads at a
serviceable level.
Transfers out decreased by $445 thousand, as the transfer out in fiscal year 2010 related to a one time
transaction. Funds were collected in the Roads Board Fund in a prior year, however, they related to a
capital project; therefore the funds were transferred out of the Roads Board and to the Roads Capital
Project Fund in fiscal year 2010.
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 assets of the Sanitary District Enterprise Funds at the end of fiscal year
2011 amounted to $13.3 million, which is $263 thousand less than the prior year. This resulted
from the use of Restricted Fund assets to repay a large portion of debt service due for the
BNR/ENR sewer plant debt, which is an approved use for these restricted monies.
Total net assets amounted to $74.4 million at the end of fiscal year 2011, which decreased by
$1.1 million when compared to the prior year. A large portion of the decrease relates to the costs
associated with other post-employment benefits (OPEB), which totaled $792 thousand in fiscal
year 2011 for the Sanitary District. Another part of the decrease is also due to the transfer of
monies, in excess of receipts, from the Restricted and Debt Service Funds to operating Funds to
pay debt service. During fiscal year 2011, $311 thousand and $382 thousand were transferred in
excess of receipts from the Restricted and Debt Service Funds, respectively.
The unrestricted net assets of the Bay Bridge Airport Enterprise Fund at year end amounted to
negative $389 thousand compared to a negative $80 thousand at the end of the prior fiscal year,
reflecting a decrease of $309 thousand. This change was mostly due to a reduction in federal
and state capital contributions compared to the prior fiscal year, on the new runway project.
- 26 -

Total net assets amounted to $13.5 million at the end of fiscal year 2011, which decreased by
$95 thousand when compared to the prior year. This change was due to other post-employment
costs of $65 thousand and also an increase of approximately $50 thousand in fuel expenses.
A discussion of Enterprise Fund capital assets and long-term debt can be found in those sections
presented later in this MD&A.
General Fund Budgetary Comparisons
The County adopts an operating budget for the General Fund as of July 1 each year and amends
that budget throughout the year in response to actual events. Three schedules detail these
events: summary, revenues and expenditures. These schedules can be found as part of
Required Supplemental Information, which is located after the Notes on pages 115 through 119.
These Schedules report original and final budgets, as well as the variance between actual events
and final budgets.
Original to Final Budget Comparisons. The final expenditure budget for the General Fund,
including transfers out, totaled $113.9 million. Amendments increased spending authority by $4.6
million during fiscal year 2011, when compared to the original budget of $109.3 million.
Major components of these expenditure budget increases are as follows:
• Budgeted Miscellaneous Expenditures on behalf of Insurance and Benefit costs
increased by $2.8 million during the year, to $4.3 million. This increase in budget
authority arose out of the following events:
o The majority of the increase in Insurance and Benefit Costs related to the
retirement incentive plans. Due to the challenging financial situation the County
faced in fiscal year 2011, the County developed two retirement incentive plans for the
year, which included termination pay, deferred compensation and other benefits
payable.
o The remaining increase relates to workmen’s compensation insurance costs.
The County also allocates workmen’s compensation insurance costs through the
year based on insurance rates attributable to each class of workers. At year end,
these costs are similarly adjusted to actual costs.
• Budgeted Debt Service increased by $665 thousand during the year. The majority of this
increase was for debt service for land purchased for the future construction of a new
Circuit Courthouse.
• Budgeted Public Safety Expenditures increased by $673 thousand, from the original
budget of $21.4 million to the final budgeted expenditures of $22.1 million for fiscal year
2011. Of the increase, $365 thousand related to the Eastern Shore Communications
Alliance, which was a new grant this year, as mentioned previously in this MD&A.
Another $220 thousand increase related to two grants for Emergency Services; $190
thousand for a Homeland Security Program Grant and the remaining $30 thousand for a
grant from the Maryland Emergency Management Agency. There were also a few
miscellaneous decreases which offset a small portion of the increased budgeted
expenditures.
Budget to Actual Comparisons. Actual revenues for the General Fund, including other financing
sources and before appropriated fund balance were less than final budgetary estimates by $4.0
million. Actual expenditures, and other financing uses, were less than final budgetary
appropriations by $5.2 million. The net effect of these two opposing events was a positive
variance of actual to final budget of $1.2 million.
- 27 -

The most noteworthy differences between final budgeted amounts and actual amounts are
summarized as follows:
Revenues:
• Income tax revenue was $3.5 million less than budgeted (10.5 percent). The previous
County Commissioners based the budget for fiscal year 2011 income tax revenue on
positive economic indicators; however the actual revenue came in much less, but
comparable to the prior year.
• Recordation tax revenue was $223 thousand less than expected (8.4 percent), as County
revenues related to housing activity continued to be affected by the slow housing market.
• Investment income was $177 thousand less than expected (78.0 percent). This resulted
from fluctuations in cash on hand and interest rate reductions.
Expenditures:
• Final Budgeted Salaries and Benefits were $31.7 million for the year, while actual costs
were $30.0 million. They were underspent at year-end by $1.7 million (5.3 percent). Of
this amount, the department of emergency services was responsible for $383 thousand
of the unspent portion, the sheriff’s office for $357 thousand, and solid waste for $273
thousand. This was due to routine turnover, vacant positions and the retirement incentive
plans offered by the County during this fiscal year.
• Final Budgeted Other Operating Charges were $81.7 million for the year, while actual
costs were $78.5 million. These costs were lower than budget at year end by $3.2 million
(3.9 percent). Operating Charges include contracted services, supplies, debt service,
transfers out, and other charges.
o Contracted Services were underutilized by $419 thousand, largely due to savings
by the detention center ($208 thousand), with the largest savings for medical
charges ($186 thousand).
o Supplies were underspent by $120 thousand, largely due to savings by the
detention center ($46 thousand), with the largest savings for uniforms/apparel
($20 thousand) due to the timing of the orders.
o Other Charges were underspent by $2.3 million, primarily due to debt service
($1.3 million) and the timing of bond payments. Included in the fiscal year 2011
budget were payments for the 2011 bonds, however there were not any
payments due until fiscal year 2012. The remaining $1.0 million in savings for
other charges were spread out throughout the General Fund, as all departments
are continuing the effort of increasing efficiencies whenever possible.
o Transfers Out were underutilized by $394 thousand, primarily due to savings by
the Department of Aging ($257 thousand) and the Department of Housing ($83
thousand), which allowed these Departments to forgo this portion of their
appropriation.
• Final Budgeted Capital Outlay was $512 thousand for the year, while actual costs were
$238 thousand. Purchases of capital assets were less than anticipated by $274
thousand (53.5 percent). This is largely due to the County’s economic climate and its
desire to reduce spending.
- 28 -

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, 2011 amounted to $241.9 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 2011 2010 2011 2010 2011 2010
Land and Land Improvements $ 81,551,088 $ 79,718,879 $ 14,209,466 $ 14,209,466 $ 95,760,554 $ 93,928,345
Intangible Rights - Easements 13,390 13,390 6,140 - 19,530 13,390
Construction in Progress 8,171,028 11,616,229 5,486,372 5,199,865 13,657,400 16,816,094
Buildings 30,780,208 26,865,669 10,459,319 12,419,423 41,239,527 39,285,092
Improvements other than Buildings 4,777,203 4,570,359 4,444,591 4,137,631 9,221,794 8,707,990
Infrastructure 9,066,088 8,962,561 48,429,689 48,632,364 57,495,777 57,594,925
Auto, Machinery, and Equipment 9,516,953 11,377,130 14,951,492 15,762,023 24,468,445 27,139,153
Total $ 143,875,958 $ 143,124,217 $ 97,987,069 $ 100,360,772 $ 241,863,027 $ 243,484,989
Queen Anne’s County’s total investment in capital assets for the current fiscal year, net of
depreciation, decreased by 0.7 percent, or $1.6 million. Of this amount, governmental investment
in capital assets increased by $752 thousand, while business-type investment in capital assets
decreased by $2.4 million.
Changes in the County’s capital assets, with depreciation shown separately, are summarized as
follows. Note that completed projects that were reclassified from construction in progress (CIP) to
other asset accounts during the year net to zero and are reported in the same column.
Governmental Activities
Construction In
Changes in Capital Assets 2010 Additions Progress & Transfers Retirements 2011
Land and Land Improvements $ 79,718,879 $ - $ 1,992,091 $ (159,882) $ 81,551,088
Intangible Rights - Easements 13,390 - - - 13,390
Construction in Progress 11,616,229 4,422,434 (7,668,861) ( 198,774) 8,171,028
Buildings 35,066,000 35,040 4,959,022 ( 227,064) 39,832,998
Improvements other than Buildings 5,517,458 16,130 359,008 - 5,892,596
Infrastructure 15,491,275 - 358,740 - 15,850,015
Auto, Machinery, and Equipment 28,988,183 482,223 - (1,361,546) 28,108,860
Total Assets before depreciation 176,411,414 4,955,827 - (1,947,266) 179,419,975
Less Depreciation ( 33,287,197) ( 3,533,792) - 1,276,972 (35,544,017)
Total Assets after depreciation $ 143,124,217 $ 1,422,035 $ - $ (670,294) $ 143,875,958
Business-Type Activities
Construction In
Changes in Capital Assets 2010 Additions Progress & Transfers Retirements 2011
Land and Land Improvements $ 14,209,466 $ - $ - $ - $ 14,209,466
Intangible Rights - Easements - 6,140 - - 6,140
Construction in Progress 5,199,865 1,737,157 (1,381,340) ( 69,310) 5,486,372
Buildings 18,218,809 13,451 15,497 (1,494,595) 16,753,162
Improvements other than Buildings 6,407,390 - 559,519 - 6,966,909
Infrastructure 68,224,214 837,427 806,324 (226,763) 69,641,202
Auto, Machinery, and Equipment 23,277,123 366,760 - (436,196) 23,207,687
Total Assets before depreciation 135,536,867 2,960,935 - (2,226,864) 136,270,938
Less Depreciation ( 35,176,095) ( 3,704,009) - 596,235 (38,283,869)
Total Assets after depreciation $ 100,360,772 $ ( 743,074) $ - $ (1,630,629) $ 97,987,069
- 29 -

Noteworthy capital asset events during the current fiscal year for governmental activities included
the following:
• Land and Land Improvements increased by a net amount of $1.8 million. This increase is
primarily the result of the following three events: (a) the County acquired a parcel of land
near the Town of Centreville with the intent of encouraging commercial use of the
property ($1.4 million); (b) the site work necessary to construct access roads to the
Queen Anne’s Emergency Center in Grasonville was completed ($584 thousand); and (c)
the County sold a parcel of land in the Matapeake Business Park to a commercial entity
for $350 thousand ($160 thousand book value).
• Construction in Progress (CIP) decreased by a net amount of $3.4 million. The following
factors contributed to this decrease:
Costs reclassified from Construction in Progress include: (a) a major renovation to the
County’s transit garage facility ($4.7 million); (b) infrastructure improvements near the
Queen Anne’s Emergency Center ($730 thousand); (c) improvements to Ferry Point Park
($374 thousand); and (d) a housing property rehabilitated and later sold to a qualified
buyer ($217 thousand).
Major additions to Construction in Progress include: (a) costs to acquire the County
Complex property, later reclassified to the Land account ($1.4 million); (b) the acquisition
of agricultural easements ($717 thousand); (c) improvements to Tanyard Road ($686
thousand); (d) Railroad Avenue building renovations ($581 thousand); (e) further
development of the White Marsh Park ($178 thousand); and (f) security upgrades and a
new generator for the County Courthouse ($85 thousand).
Additionally, costs related to soil remediation efforts were retired from Construction in
Progress as those amounts were deemed to be non-capital in nature ($199 thousand).
• Buildings and Improvements increased by a net amount of $4.8 million. This increase is
due almost exclusively to the completion of the public works transit garage renovation
($4.7 million). Other additions include minor renovations to the emergency services
hanger and the lower level of the circuit court building ($46 thousand).
• Improvements to Site Other than Buildings increased by $375 thousand. This increase
relates primarily to the completion of two capital projects: (a) the Ferry Point Trail
improvements and amenities were completed ($166 thousand); and (b) traffic barriers
were installed along several roadways throughout the County ($192 thousand).
• Infrastructure increased by $359 thousand. This increase relates primarily to the
completion of two infrastructure projects as follows: (a) Shoreway Drive and Leonard
Smith Road, which provide access to the Queen Anne’s Emergency Center in
Grasonville ($146 thousand); and (b) the construction of a pedestrian crossing at the
Ferry Point Park ($207 thousand).
• Auto, Machinery and Equipment decreased by a net amount of $879 thousand. The
following factors culminated in this change:
Additions of $482 thousand include the following: (a) the Aging Department utilized grant
funding to acquire two new small scale transit buses ($199 thousand); (b) the Sheriff’s
department acquired replacement law enforcement vehicles ($139 thousand); (c) Solid
Waste purchased roll-off containers and a waste compactor ($50 thousand); and (d)
computer-related equipment was acquired for several County departments ($37
thousand).
- 30 -

Retired items of $1.4 million include the following, the majority of which were fully
depreciated: (a) vehicles and construction equipment deemed obsolete ($806 thousand);
(b) retirement of unserviceable public safety and transit vehicles ($465 thousand); and (c)
obsolete computer software and hardware ($96 thousand).
Noteworthy capital asset events during the current fiscal year for business-type activities included
the following:
• Buildings decreased by $1.5 million due to the clearing of the Bay Model property. In an
effort to promote economic growth in the County, this land is currently being developed
as the Matapeake Business Park, with lots to be sold to commercial entities.
• Improvements to Site Other than Buildings increased by $560 thousand. This increase
relates to the completion of three public landings improvement projects as follows: (a)
Shipping Creek Bulkhead ($197 thousand); (b) Kent Narrows Ramp ($174 thousand);
and (c) Thompson Creek Ramp ($189 thousand).
• Infrastructure increased by a net amount of $1.4 million. The following factors contributed
to this increase: (a) two Sanitary Waterworks capital projects were completed and the
resulting infrastructure was placed in service ($806 thousand); (b) water and sewer
infrastructure constructed by developers were contributed to the County and incorporated
into the County’s water and sewer system ($837 thousand); and (c) obsolete
infrastructure removed from service and retired ($226 thousand).
Additional information on the County’s capital assets can be found in Note 6 of this report.
Long-term debt: At the end of the current fiscal year, Queen Anne’s County Government had
total bonded debt, loans, capital leases, other post-employment benefit obligations, and
compensated absence obligations of $143.1 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 $143.1 million in debt, $23.1 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 $5.2 million, which are restricted to payment of the Sanitary District’s subsequent year’s debt.
See Note 10 on pages 93 to 95 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
and Compensated Absences 2011 2010 2011 2010 2011 2010
Bonds, Notes, Premiums and
Deferred Debt Costs $ 103,916,450 $ 8 9,725,398 $ 20,150,999 $ 21,611,733 $ 124,067,449 $ 111,337,131
Other Post-Employment Benefit Obligation 13,884,282 8 ,548,639 2,647,180 1,562,119 16,531,462 10,110,758
Compensated Absences 2,162,070 2 ,434,947 339,762 296,788 2 ,501,832 2,731,735
Total Long-term Debt $ 119,962,802 $ 100,708,984 $ 23,137,941 $ 23,470,640 $ 143,100,743 $ 124,179,624
- 31 -

During the 2011 fiscal year, the County’s total net debt increased by $18.9 million (15.2 percent).
Of this amount, governmental debt increased by $19.3 million (19.1 percent), while business-type
debt decreased by $333 thousand (1.4 percent). The County issued 2011 Bonds totaling $21.5
million and also entered into a promissory note agreement for $365 thousand. In addition, total
Other Post-Employment Benefit Obligations increased by $6.4 million. Offsetting these increases
were changes in accruals, plus the County’s repayment of existing debt in accordance with
established repayment schedules for bonds, notes, and capital lease agreements.
Additional information on the County’s long-term debt can be found in Note 9, pages 83 to 92, of
this report.
The public local laws of Queen Anne’s County limit the amount of general obligation debt to no
more than $8.0 million, unless authorized under specific legislation. Currently, approximately
$6.9 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 2011, the rating agencies recalibrated their ratings and Queen Anne’s County
Government received an “AA+” bond rating from Fitch Rating Service and an “Aa2” bond rating
from Moody’s Investors Service.
Economic Factors and Next Year’s Budget and Rates
The following economic factors were considered in preparing Queen Anne’s County
Government’s operating and capital budgets for the 2012 fiscal year:
• Property assessments are projected to decrease by 0.15 percent over the previous year,
based on State Assessment Office values used to compute the Constant Yield rate.
• The County Commissioners adopted a property tax rate of $.8471 per $100 of assessed
valuation of real property for fiscal year 2012. This is an increase of $0.08 (10.4 percent)
from the rate of $0.7671 in effect for the 2011 fiscal year. In addition, the County
Commissioners also increased the Homestead Property Tax Credit from 0% to 5% for
the taxable year beginning July 1, 2012. The property tax rate, along with the expected
decrease in property assessments, are reflected in the projected fiscal year 2012
property tax revenue of $65.9 million, which is an increase of $5.8 million (9.6 percent)
over the fiscal year 2011 revenue of $60.1 million.
• Income tax revenue is projected to increase to $31.1 million in fiscal year 2012, which is
a 5.3% increase over actual receipts for fiscal year 2011. The increase is a result of the
County Commissioners raising the income tax rate from 2.85% of all taxable wages, to
3.2% (12.3% increase), effective January 1, 2012.
• In preparation for the fiscal 2012 budget, a Task Force on Government Sustainability was
formed. The committee consisted of seven citizens and two commissioner
representatives tasked with reviewing existing County functions/services and
recommending steps to ensure the long-term sustainability of County government. The
Task Force was divided into three subcommittees: County functions, Public Safety, and
Board of Education. Each subcommittee reviewed vital topics and presented
recommendations to the County Commissioners. Before issuing the recommendations,
the Task Force met publicly on eleven separate occasions. The recommendations were
considered as part of the Commissioners’ budget deliberations, and incorporated into the
adoption of the fiscal year 2012 budget.
- 32 -

In addition to the increase in the property and income tax rates, the following are a few of
the policies to continue through fiscal year 2012:
o Continue the hiring freeze through fiscal year 2012 with all requests for new part-
time and full-time employee positions to be presented to the Commissioners for
approval prior to advertising a vacancy;
o Continue implementation of the County workforce furlough program;
o Continue the suspension of the employee education assistance program; and
o Continue the suspension of the employee vacation pay-out program.
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 Departments, Finance, Financial Reports and Forms, Link to 2011
Comprehensive Annual Financial Report (CAFR)).
- 33 -

- 34 -

Basic Financial Statements
- 35 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET ASSETS
JUNE 30, 2011
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
Equity in Pooled Cash and Investments $ 45,672,988 $ 9,901,836 $ 55,574,824
Cash and Cash Equivalents - - -
Taxes Receivable (Net) 376,226 - 376,226
Accounts and Loans Receivable (Net) 4,819,962 6 29,006 5,448,968
Special Assessments (Net) 1,139,327 - 1,139,327
Internal Balances 751,513 (751,513) -
Due from Primary Government - - -
Due from Component Units 120,082 - 120,082
Due from Other Governments 12,897,896 1 54,469 13,052,365
Bond Interest Reimbursement Receivable - Build America Bond 110,004 4,496 114,500
Inventories 565,391 4 45,810 1,011,201
Prepaid Items 247 - 247
Restricted Assets:
Equity in Pooled Cash and Investments - 10,789,829 10,789,829
Investments - - -
Accounts Receivable (Net) - 47,578 47,578
Special Assessments Receivable (Net) - 2 ,770,611 2,770,611
Capital Assets:
Nondepreciable Assets 89,735,506 19,701,978 109,437,484
Depreciable Assets, Net 54,140,452 78,285,091 132,425,543
Total Assets 210,329,594 121,979,191 332,308,785
LIABILITIES
Accounts Payable and Other Current Liabilities 3,830,576 4 25,042 4,255,618
Accrued Interest Payable 1,264,252 1 23,495 1,387,747
Due to Primary Government - - -
Due to Component Units 3,008,665 - 3,008,665
Due to Other Governmental Agencies 319,806 - 319,806
Unearned Revenue 2,463,390 6 92,518 3,155,908
Escrow Deposits - 47,717 47,717
Liabilities Payable from Restricted Assets:
Unearned Revenue - 2 ,661,512 2,661,512
Noncurrent Liabilities:
Due within One Year 8,620,719 2 ,316,402 10,937,121
Due in More than One Year 111,342,083 20,821,539 132,163,622
Total Liabilities 130,849,491 27,088,225 157,937,716
NET ASSETS
Invested in Capital Assets, Net of Related Debt 118,274,533 78,069,061 196,343,594
Restricted for:
Governmental Activities 22,399,514 - 22,399,514
Debt Service - 3 ,288,572 3,288,572
Capital/Debt Service - 6 ,388,195 6,388,195
Business-type Operations - 6 ,391,838 6,391,838
Capital Projects - 7 53,300 753,300
Other Purposes - - -
Unrestricted Net Assets (Deficit) (61,193,944) - (61,193,944)
Total Net Assets $ 79,480,103 $ 94,890,966 $ 174,371,069
The accompanying notes to the basic financial statements are an integral part of this statement.
- 36 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET ASSETS
JUNE 30, 2011
(CONTINUED)
COMPONENT UNITS
BOARD OF FREE HOUSING
EDUCATION LIBRARY AUTHORITY
$ - $ - $ 2 ,123,122
13,772,461 703,236 3 34,490
- - -
490,248 21,509 6,876
- - -
- - -
3,008,665 - -
- - -
1,294,037 - 4 07,607
- - -
51,741 - -
4,120 17,200 -
- 650,441 -
- - 99,331
- - -
- - -
24,780,234 29,850 1 ,365,852
120,727,509 946,449 1 8,167,028
164,129,015 2,368,685 2 2,504,306
13,185,292 41,802 61,965
- - 20,904
- - 1 20,082
- - -
29,613 - 1 15,970
1,323,112 - 6,134
- - 97,855
- - -
492,102 - 1 02,089
15,412,480 561,264 2 ,780,751
30,442,599 603,066 3 ,305,750
145,503,183 976,299 16,995,112
- - -
- - -
- - -
- - -
815,400 - 2 ,073,691
225,990 10,500 -
(12,858,157) 778,820 1 29,753
$ 133,686,416 $ 1,765,619 $ 19,198,556
The accompanying notes to the basic financial statements are an integral part of this statement.
- 37 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2011
PRIMARY GOVERNMENT
OPERATING CAPITAL
CHARGES FOR GRANTS AND GRANTS AND TOTAL
EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS REVENUE
PRIMARY GOVERNMENT
Governmental Activities
General Government $ 15,968,633 $ 1,086,641 $ 694,347 $ 1 18,100 $ 1,899,088
Public Safety 25,413,678 1,090,545 1,461,080 82,885 2,634,510
Public Works 9,098,949 872,352 546,719 901,289 2,320,360
Health 1,701,677 - - - -
Social Services 5,001,240 69,382 2,050,062 215,748 2,335,192
Education 57,506,341 755,443 - - 755,443
Parks & Recreation 3,090,228 187,901 1,868 199,698 389,467
Library 1,457,336 - - - -
Conservation of Natural Resources 3,811,748 75,354 1,006,138 1 ,923,471 3,004,963
Economic/Community Development 1,893,570 4,236 239,893 110,561 354,690
Interest and Fiscal Charges 4,078,105 - - - -
Total Governmental Activities 129,021,505 4,141,854 6,000,107 3 ,551,752 13,693,713
Business-type Activities
Water and Sewer 10,905,989 8,192,471 - 837,426 9,029,897
Parks & Recreation 4,099,507 1,568,227 39,572 196,487 1,804,286
Public Marinas 67,395 84,987 16,241 588,326 689,554
Airport 1,167,655 37,955 3,715 448,600 490,270
Total Business-type Activities 16,240,546 9,883,640 59,528 2 ,070,839 12,014,007
Total Primary Government $ 145,262,051 $ 14,025,494 $ 6,059,635 $ 5 ,622,591 $ 25,707,720
COMPONENT UNITS
Board of Education $ 103,922,978 $ 1,528,632 $ 21,202,277 $ - $ 22,730,909
Free Library 1,945,560 7,818 198,275 - 206,093
Housing Authority 3,013,711 1,277,554 1,458,042 583,176 3,318,772
Total Component Units $ 108,882,249 $ 2,814,004 $ 22,858,594 $ 5 83,176 $ 26,255,774
General Revenues
Local Property Tax
Local Income Tax
Other Local Taxes
Admission and Amusement Taxes
Recordation Taxes
Hotel Taxes
County Transfer Taxes
Grants and Contributions Not Restricted to Specific Programs
Investment Income
Gain on Sale of Capital Assets
Miscellaneous
Transfers In (Out)
Total General Revenues and Transfers
Change in Net Assets
Total Net Assets - Beginning of Year
Total Net Assets - End of Year
The accompanying notes to the basic financial statements are an integral part of this statement.
- 38 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
NET (EXPENSE) REVENUE AND CHANGES IN NET ASSETS
PRIMARY GOVERNMENT COMPONENT UNITS
GOVERNMENTAL BUSINESS-TYPE BOARD OF FREE HOUSING
ACTIVITIES ACTIVITIES TOTAL EDUCATION LIBRARY AUTHORITY
$ (14,069,545) $ - $ (14,069,545) $ - $ - $ -
(22,779,168) - (22,779,168) - - -
( 6,778,589) - (6,778,589) - - -
( 1,701,677) - (1,701,677) - - -
( 2,666,048) - (2,666,048) - - -
(56,750,898) - (56,750,898) - - -
( 2,700,761) - (2,700,761) - - -
( 1,457,336) - (1,457,336) - - -
( 806,785) - ( 806,785) - - -
( 1,538,880) - (1,538,880) - - -
( 4,078,105) - (4,078,105) - - -
(115,327,792) - (115,327,792) - - -
- (1,876,092) (1,876,092) - - -
- (2,295,221) (2,295,221) - - -
- 6 22,159 622,159 - - -
- (677,385) ( 677,385) - - -
- (4,226,539) (4,226,539) - - -
$ (115,327,792) $ (4,226,539) $ (119,554,331) $ - $ - $ -
- - - (81,192,069) - -
- - - - (1,739,467) -
- - - - - 305,061
- - - (81,192,069) (1,739,467) 305,061
60,070,368 - 6 0,070,368 - - -
30,624,679 - 3 0,624,679 - - -
188,715 - 188,715 - - -
3,609,751 - 3,609,751 - - -
441,123 - 441,123 - - -
1,158,897 - 1,158,897 - - -
- - - 86,712,367 1 ,559,606 318,319
136,523 4 07,629 544,152 1 5,175 7,143 4,076
281,158 - 281,158 - - -
711,868 8 84,772 1,596,640 2 67,928 83,096 -
( 611,922) 6 11,922 - - - -
96,611,160 1 ,904,323 9 8,515,483 86,995,470 1 ,649,845 322,395
(18,716,632) (2,322,216) (21,038,848) 5 ,803,401 (89,622) 627,456
98,196,735 97,213,182 1 95,409,917 127,883,015 1 ,855,241 1 8,571,100
$ 79,480,103 $ 94,890,966 $ 1 74,371,069 $ 133,686,416 $ 1 ,765,619 $ 1 9,198,556
The accompanying notes to the basic financial statements are an integral part of this statement.
- 39 -

QUEEN ANNE'S COUNTY, MARYLAND
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2011
SCHOOL
GENERAL GENERAL ROADS IMPACT FEES
FUND CAPITAL CAPITAL CAPITAL
ASSETS
Cash and Cash Equivalents $ 3,903,548 $ 31,376,579 $ 3,415,386 $ 4 16,209
Prepaid Items - - - -
Receivables
Taxes Receivable (Net) 254,204 122,022 - -
Accounts and Loans Receivable (Net) 266,842 2 ,036 1 9,518 4 19,329
Special Assessments (Net) - - 4 55,933 -
Due from Other Governments 11,209,964 230,351 6 86,352 -
Due from Other Funds 1,010,173 6 8,775 - -
Due from Component Units 120,082 - - -
Inventory 4,000 - - -
Total Assets $ 16,768,813 $ 31,799,763 $ 4,577,189 $ 8 35,538
LIABILITIES AND FUND BALANCES
Liabilities
Accrued Liabilities $ 2,882,780 $ 357,040 $ 31 $ -
Due to Other Funds - - - -
Due to Component Units - 3,008,665 - -
Due to Other Governmental Agencies - - - -
Deferred Revenue 8,067,511 8 0,307 5 15,900 4 19,329
Total Liabilities 10,950,291 3,446,012 5 15,931 4 19,329
Fund Balances
Nonspendable 4,000 - - -
Restricted 333,798 16,920,733 - 4 16,209
Committed 657,068 1,042,909 7 77,909 -
Assigned 70,000 10,390,109 3 ,283,349 -
Unassigned 4,753,656 - - -
Total Fund Balances 5,818,522 28,353,751 4 ,061,258 4 16,209
Total Liabilities and Fund Balances $ 16,768,813 $ 31,799,763 $ 4,577,189 $ 8 35,538
The accompanying notes to the basic financial statements are an integral part of this statement.
- 40 -

QUEEN ANNE'S COUNTY, MARYLAND
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2011
(CONTINUED)
TOTAL
ROADS NON-MAJOR GOVERNMENTAL
BOARD GOVERNMENTAL FUNDS
$ 1,493,085 $ 5 ,068,181 $ 45,672,988
- 247 247
- - 376,226
62,837 4,049,400 4,819,962
- 683,394 1,139,327
266,341 504,888 12,897,896
- - 1,078,948
- - 120,082
561,391 - 565,391
$ 2,383,654 $ 1 0,306,110 $ 66,671,067
$ 198,683 $ 392,042 $ 3,830,576
- 327,435 327,435
- - 3,008,665
- 319,806 319,806
586,402 835,763 10,505,212
785,085 1,875,046 17,991,694
561,391 3,840,092 4,405,483
167,827 4,560,947 22,399,514
- - 2,477,886
869,351 202,406 14,815,215
- (172,381) 4,581,275
1,598,569 8,431,064 48,679,373
$ 2,383,654 $ 1 0,306,110 $ 66,671,067
The accompanying notes to the basic financial statements are an integral part of this statement.
- 41 -

- 42 -

QUEEN ANNE'S COUNTY, MARYLAND
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2011
Total Fund Balance - Governmental Funds $ 4 8,679,373
Amounts reported for Governmental activities in the Statement of Net Assets
are different because:
Receivables not included in the governmental funds because they relate to debt.
A portion of the County’s 2009 Bond offering was issued using
Build America Bonds. As an incentive to use these bonds, the Federal
government offered an interest reimbursement grant, which offsets the
County's debt service for interest expense. Therefore, at year end, a
receivable is booked for the interest reimbursement due, but not yet received.
ADD Bond Interest Reimbursement Receivable - Build America Bond 1 10,004
Capital assets used in governmental fund activities are not financial resources
and therefore are not reported in the funds.
ADD Nondepreciable capital assets
Land and Land Improvements $ 40,902,400
Infrastructure 40,662,078
Construction in Progress 8 ,171,028 89,735,506
ADD Depreciable capital assets
Buildings 39,832,998
Improvements other than Buildings 5 ,892,596
Machinery and Equipment 18,893,933
Automobiles and Trucks 9 ,214,927
Infrastructure 15,850,015
Less Accumulated depreciation (35,544,017) 54,140,452
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 78,885
ADD Income Taxes deferred in governmental funds 6 ,213,478
ADD Loans receivable deferred in governmental funds 1 ,749,459 8,041,822
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 (1,264,252)
SUBTRACT Long-Term Liabilities Due within One Year
Accrued Compensated Absences (1,379,933)
Bonds and Notes Payable (7,240,786) (8,620,719)
SUBTRACT Long-Term Liabilities Due in More than One Year
Other Post-Employment Benefit Obligation (13,884,281)
Accrued Compensated Absences (782,138)
Bonds and Notes Payable (96,675,664) ( 111,342,083)
Total Net Assets - Governmental Activities $ 79,480,103
The accompanying notes to the basic financial statements are an integral part of this statement.
- 43 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
SCHOOL
GENERAL GENERAL ROADS IMPACT FEES
FUND CAPITAL CAPITAL CAPITAL
REVENUES
Taxes
Local Property Tax $ 60,061,951 $ - $ - $ -
Local Income Tax 29,527,496 - - -
Admission and Amusement Taxes 141,536 - - -
Recordation Taxes 2,426,641 361,901 - -
Hotel Taxes 441,123 - - -
County Transfer Taxes - 1,158,897 - -
State Shared Taxes - - - -
Licenses and Permits 919,663 - - -
Intergovernmental 1,933,743 2,912,038 901,289 -
Bond Interest Reimbursement - Build America Bond 438,022 - - -
Charges for Current Services 1,553,687 - 59,793 755,443
Fines and Forfeitures 36,244 - - -
Investment Income 50,109 23,842 34,640 220
Donations 35,335 12,804 - -
Miscellaneous 510,843 8,025 - -
Total Revenues 98,076,393 4,477,507 995,722 755,663
EXPENDITURES
Current
General Government 9,789,937 523,985 - -
Public Safety 20,657,018 9,743 - -
Public Works 2,938,771 457,300 388,669 -
Health 1,670,222 - - -
Social Services 284,865 26,592 - -
Education 49,691,877 7,874,988 - -
Parks 2,373,537 147,638 - -
Library 1,433,725 - - -
Conservation of Natural Resources 531,968 2,228,386 - -
Economic/Community Development 1,027,499 - - -
Miscellaneous 4,699,452 - - -
Capital Outlay 238,195 3,601,013 974,216 -
Debt Service
Principal 6,835,118 - - -
Debt Issuance Costs - 129,671 - -
Interest and Fiscal Charges 3,614,051 - - -
Total Expenditures 105,786,235 14,999,316 1,362,885 -
Excess of Revenues Over (Under) Expenditures (7,709,842) (10,521,809) (367,163) 755,663
OTHER FINANCING SOURCES (USES)
Issuance of Debt - 21,508,901 388,669 -
Bond Premiums - 139,136 - -
Proceeds of Capital Asset Disposals - 564,742 - -
Insurance Proceeds 99,028 - - -
Transfers In 2,320,569 665,525 - -
Transfers Out (2,922,343) (1,680,551) (10,000) (1,408,120)
Other Financing Sources (Uses) (502,746) 21,197,753 378,669 (1,408,120)
Net Increase (Decrease) in Fund Balances (8,212,588) 10,675,944 11,506 (652,457)
Fund Balances, July 1 14,031,110 17,677,807 4,049,752 1,068,666
Fund Balances, June 30 $ 5,818,522 $ 28,353,751 $ 4,061,258 $ 416,209
The accompanying notes to the basic financial statements are an integral part of this statement.
- 44 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
TOTAL
ROADS NON-MAJOR GOVERNMENTAL
BOARD GOVERNMENTAL FUNDS
$ - $ 36,008 $ 6 0,097,959
- - 2 9,527,496
- 47,179 188,715
- 821,209 3 ,609,751
- - 441,123
- - 1 ,158,897
1 97,776 32,625 230,401
- - 919,663
3 28,943 2 ,701,716 8 ,777,729
- - 438,022
2 90,779 484,144 3 ,143,846
- 42,101 78,345
4,797 22,915 136,523
- 61,203 109,342
86,264 103,323 708,455
9 08,559 4 ,352,423 109,566,267
- 83,535 1 0,397,457
- 460,560 2 1,127,321
3 ,493,027 - 7 ,277,767
- - 1 ,670,222
- 3 ,787,193 4 ,098,650
- - 5 7,566,865
- - 2 ,521,175
- - 1 ,433,725
- 1 ,112,562 3 ,872,916
- 688,025 1 ,715,524
- - 4 ,699,452
13,732 11,425 4 ,838,581
- 129,440 6 ,964,558
- - 129,671
- 15,375 3 ,629,426
3 ,506,759 6 ,288,115 131,943,310
(2,598,200) (1,935,692) (22,377,043)
- - 2 1,897,570
- - 139,136
2,208 15,651 582,601
- - 99,028
- 2 ,400,162 5 ,386,256
- (593,507) (6,614,521)
2,208 1 ,822,306 2 1,490,070
(2,595,992) (113,386) (886,973)
4 ,194,561 8 ,544,450 4 9,566,346
$ 1,598,569 $ 8 ,431,064 $ 4 8,679,373
The accompanying notes to the basic financial statements are an integral part of this statement.
- 45 -

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, 2011
Change in Fund Balances - Total governmental funds, per Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds $ (886,973)
Amounts reported for governmental activities in the Statement of Activities are different because:
Capital outlay expenditures are reported in Governmental Funds during the year. However, in the Statement
of Activities, costs for capital asset purchases are allocated over the estimated useful lives of those
assets and reported as depreciation expense over a number of years. Therefore, the change in assets
differs from the change in fund balance by the amount of capital asset purchases that will be capitalized
and depreciated over a number of years, less the offsetting depreciation expense for the current year.
Proceeds received on disposal of capital assets are reported in Governmental Funds as current financial
resources. In the Statement of Activities, only the gain or (loss) realized on disposal of capital assets is
reported. Thus, the change in net assets differs from the change in fund balance by the cost of capital
assets sold, net of accumulated depreciation (i.e., book value).
In addition, developer contributions of capital assets (primarily infrastructure) are not reported in Governmental
Funds because they do not represent current financial resources available to cover this year's expenditures.
Thus, the change in net assets differs from the change in fund balance by the value of capital assets received.
Donated Capital Assets are not reported in Governmental Funds because they are not current financial resources.
However, in the Statement of Activities, they are recognized as capital contributions and as capital assets.
The following is a summary of the net increase in capital assets, which is detailed in Note 6 - Capital Assets - Primary Government.
ADD capital assets acquired as capital outlay $ 263,352
ADD capital assets resulting from force-in-kind expenditures 117,246
ADD capital assets resulting from general capital projects 3,601,013
ADD capital assets resulting from roads capital projects 974,216
SUBTRACT book value of disposed capital assets, net of accumulated depreciation (670,294)
SUBTRACT current year depreciation expense (3,533,792)
Net Increase in Capital Assets 751,741
Receivables not included in the governmental funds because they relate to debt.
A portion of the County’s 2009 Bond offering was issued using Build America Bonds. As an incentive to use
these bonds, the Federal government offered an interest reimbursement grant, which offsets the County’s debt
service for interest expense. Therefore, at year end, a receivable is booked for the interest reimbursement due, but
not yet received.
ADD current year's bond interest reimbursement receivable - Build America Bond 110,004
SUBTRACT prior year's bond interest reimbursement receivable - Build America Bond (113,640)
(3,636)
The accompanying notes to the basic financial statements are an integral part of this statement.
CONTINUED
- 46 -

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, 2011
(CONTINUED)
Revenues that are earned but not collected within sixty days after the end of the fiscal year are not considered to
be "available" to meet current cash requirements and are deferred in the Governmental Funds to the following year.
However, these revenues are recognized in the Statement of Activities. The amount by which this type of
deferred revenue increased or (decreased) relative to the prior year is as follows:
ADD current year's Property Tax Deferred Revenue $ 78,885
SUBTRACT prior year's Property Tax Deferred Revenue (106,476)
$ (27,591)
ADD current year's Income Tax Deferred Revenue 6,213,478
SUBTRACT prior year's Income Tax Deferred Revenue (5,116,295)
1,097,183
Issuance of long-term debt (e.g., bonds, notes, and capital leases) provides current financial resources
to Governmental Funds, while repayment of principal due for long-term debt consumes current resources.
In the Statement of Net Assets, issuing debt increases long term liabilities, while repayment reduces
those liabilties.
ADD retirements and repayments made on long term debt
General Bonds Payable 6,822,151
Notes Payable 946,450
Bond Premiums, Net of Issuance Costs 66,070
Deferred Refunding Costs (170,483)
Capital Leases 51,795
7,715,983
SUBTRACT proceeds of 2011 Bond (21,532,570)
SUBTRACT Bond premium, net of issuance costs for 2011 bond (9,465)
SUBTRACT proceeds of Loan for Frizz King Property (365,000)
SUBTRACT College reimbursement received (239,495)
ADD County's allocation to College for debt 60,524
(14,370,023)
Some accrued expenses, reported in the Statement of Activities, do not require the use of current financial
financial resources and are not reported as expenditures in the Governmental Funds. The net amount
by which these accruals increased or (decreased) over the prior period is as follows:
ADD prior year's Accrued Interest Payable 1,049,686
SUBTRACT current year's Accrued Interest Payable (1,264,252)
(214,566)
ADD prior year's Accrued Compensated Absences 2,434,948
SUBTRACT current year's Accrued Compensated Absences (2,162,071)
272,877
ADD prior year's Accrued Other Post Employment Benefit Obligation 8,548,637
SUBTRACT current year's Accrued Other Post Employment Benefit Obligation (13,884,281)
(5,335,644)
Change in Net Assets - governmental activities, per Statement of Activities $ (18,716,632)
The accompanying notes to the basic financial statements are an integral part of this statement.
- 47 -

QUEEN ANNE'S COUNTY, MARYLAND QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET ASSETS STATEMENT OF NET ASSETS
ENTERPRISE FUNDS ENTERPRISE FUNDS
JUNE 30, 2011 JUNE 30, 2011
(CONTINUED)
SANITARY DISTRICT
SEWER WATER RESTRICTED
ASSETS OPERATIONS OPERATIONS FUND
Current Assets
Unrestricted
Equity in Pooled Cash $ 6 ,146,764 $ 2,915,613 $ -
Accounts Receivable (Net) 3 29,474 176,347 -
Due from Other Funds 2 80,682 - -
Due from Other Governments - - -
Bond Interest Reimbursement Receivable - Build America Bond - - -
Inventories 3 97,081 - -
Restricted
Restricted Equity in Pooled Cash - - 7,131,635
Restricted Accounts Receivable (Net) - - 9,860
Total Current Assets 7 ,154,001 3,091,960 7,141,495
Noncurrent Assets
Restricted
Special Assessments Receivable (Net) - - 1,199,203
Capital Assets
Intangible Rights - 6,140 -
Land, Improved and Unimproved 8 16,331 - -
Buildings and Improvements to Buildings 1 4,265,248 180,203 -
Improvements Other Than Buildings 1 ,615,474 128,152 -
Automotive Equipment 9 77,486 203,387 -
Equipment 1 9,893,847 1,073,319 -
Furniture and Fixtures 4 7,216 6,228 -
Infrastructure Improvements 4 9,003,503 20,637,699 -
Construction in Progress 2 70,283 - -
Capital Assets before Depreciation 8 6,889,388 22,235,128 -
Less Accumulated Depreciation (28,062,092) ( 6,406,160) -
Total Capital Assets, Net of
Accumulated Depreciation 5 8,827,296 15,828,968 -
Total Noncurrent Assets 5 8,827,296 15,828,968 1,199,203
Total Assets 6 5,981,297 18,920,928 8,340,698
LIABILITIES
Current Liabilities
Payable from Unrestricted Assets
Accounts Payable 2 61,021 49,455 -
Accrued Interest Payable 8 8,420 5,984 -
Escrow Deposits 2 8,140 - -
Due to Other Funds - - -
Unearned Revenue 6 64,827 - -
Current Portion of Compensated Absences 1 17,489 46,625 -
Current Portion of Bonds/Notes Payable 1 ,431,598 447,118 -
Payable from Restricted Assets
Current Portion of Bonds Payable - - -
Total Current Liabilities 2 ,591,495 549,182 -
Noncurrent Liabilities
Payable from Unrestricted Assets
Compensated Absences 6 6,592 26,427 -
Other Post-Employment Benefit Obligation 1 ,506,837 467,915 -
Bonds/Notes Payable 1 5,092,700 599,283 -
Liabilities Associated with Restricted Assets
Unearned Revenue - - 1,199,203
Total Noncurrent Liabilities 1 6,666,129 1,093,625 1,199,203
Total Liabilities 1 9,257,624 1,642,807 1,199,203
NET ASSETS
Invested in Capital Assets, Net of Related Debt 4 2,302,998 14,782,567 -
Restricted for:
Debt Service - - -
Capital Projects - - 753,300
Unrestricted 4 ,420,675 2,495,554 6,388,195
Total Net Assets $ 4 6,723,673 $ 17,278,121 $ 7,141,495
The accompanying notes to the basic financial statements are an integral part of this statement.
- 48 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF NET ASSETS
ENTERPRISE FUNDS
JUNE 30, 2011
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ - $ 9,062,377 $ - $ 839,459 $ 9,901,836
- 505,821 1 12,807 10,378 629,006
- 280,682 - 20,000 300,682
- - 5 8,542 95,927 154,469
- - 7 12 3,784 4,496
- 397,081 3 9,992 8,737 445,810
3,658,194 10,789,829 - - 10,789,829
37,718 47,578 - - 47,578
3,695,912 21,083,368 2 12,053 978,285 22,273,706
1,571,408 2,770,611 - - 2,770,611
- 6,140 - - 6,140
- 816,331 1 0,670,168 2,722,967 14,209,466
- 14,445,451 1 ,126,839 1,180,872 16,753,162
- 1,743,626 2 ,146,831 3,076,452 6,966,909
- 1,180,873 5 9,470 83,445 1,323,788
- 20,967,166 4 1,020 791,519 21,799,705
- 53,444 - 30,750 84,194
- 69,641,202 - - 69,641,202
- 270,283 2 ,938,210 2,277,879 5,486,372
- 109,124,516 1 6,982,538 10,163,884 136,270,938
- (34,468,252) (2,431,226) ( 1,384,391) ( 38,283,869)
- 74,656,264 1 4,551,312 8,779,493 97,987,069
1,571,408 77,426,875 1 4,551,312 8,779,493 100,757,680
5,267,320 98,510,243 1 4,763,365 9,757,778 123,031,386
- 310,476 2 7,983 86,583 425,042
3,210 97,614 9 ,082 16,799 123,495
- 28,140 8 ,630 10,947 47,717
280,682 280,682 3 77,884 393,629 1,052,195
- 664,827 - 27,691 692,518
- 164,114 7 ,507 45,231 216,852
- 1,878,716 4 1,710 124,753 2,045,179
54,371 54,371 - - 54,371
338,263 3,478,940 4 72,796 705,633 4,657,369
- 93,019 4 ,255 25,636 122,910
- 1,974,752 1 66,141 506,287 2,647,180
178,620 15,870,603 5 93,963 1,586,883 18,051,449
1,462,309 2,661,512 - - 2,661,512
1,640,929 20,599,886 7 64,359 2,118,806 23,483,051
1,979,192 24,078,826 1 ,237,155 2,824,439 28,140,420
- 57,085,565 1 3,915,639 7,067,857 78,069,061
3,288,128 3,288,128 - 444 3,288,572
- 753,300 - - 753,300
- 13,304,424 (389,429) ( 134,962) 12,780,033
$ 3,288,128 $ 74,431,417 $ 1 3,526,210 $ 6,933,339 $ 94,890,966
The accompanying notes to the basic financial statements are an integral part of this statement.
- 49 -

QUEEN ANNE'S COUNTY, MARYLAND QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
ENTERPRISE FUNDS ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2011 FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
SANITARY DISTRICT
SEWER WATER RESTRICTED
OPERATIONS OPERATIONS FUND
OPERATING REVENUES
Charges for Services $ 4,897,764 $ 2,054,158 $ 699,498
Intergovernmental - - -
Bond Interest Reimbursement - Build America Bond - - -
Material Sales 2,450 4 ,022 -
Miscellaneous Revenues 97,204 137,373 -
Total Operating Revenues 4,997,418 2,195,553 699,498
OPERATING EXPENSES
Cost of Sales and Services
Collection 2,223,367 - -
Distribution - 9 9,180 -
Treatment 1,281,225 1,055,985 -
Shop 157,220 9 6,923 -
Airport - - -
Parks and Recreation - - -
Public Marinas - - -
Total Cost of Sales and Services 3,661,812 1,252,088 -
Administration and Inspection 685,074 511,852 -
Other Post-Employment Benefit Contributions 601,594 190,256 -
Depreciation 2,890,057 488,614 -
Total Operating Expenses 7,838,537 2,442,810 -
Operating Income (Loss) (2,841,119) (247,257) 699,498
NON-OPERATING REVENUES (EXPENSES)
Investment Income 102,881 5 3,536 120,835
Interest Expense (298,759) (78,966) -
Loss on Disposal of Capital Assets (29,118) (197,321) -
Total Non-Operating Revenues (Expenses) (224,996) (222,751) 120,835
Income (Loss) Before Contributions and Transfers (3,066,115) (470,008) 820,333
Capital Contributions, Fees and Grants 751,231 8 6,195 -
Transfers In 1,706,498 539,645 -
Transfers Out - - (1,131,894)
Net Transfers In (Out) 1,706,498 539,645 (1,131,894)
Change in Net Assets (608,386) 155,832 (311,561)
Total Net Assets - Beginning of Year 47,332,059 17,122,289 7,453,056
Total Net Assets - End of Year $ 46,723,673 $ 17,278,121 $ 7,141,495
The accompanying notes to the basic financial statements are an integral part of this statement.
- 50 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ 541,051 $ 8,192,471 $ 37,955 $ 1 ,653,214 $ 9,883,640
- - 821 38,927 39,748
- - 2,894 16,886 19,780
- 6,472 412,340 53,196 472,008
- 234,577 107,118 71,069 412,764
541,051 8,433,520 561,128 1,833,292 10,827,940
- 2,223,367 - - 2,223,367
- 99,180 - - 99,180
- 2,337,210 - - 2,337,210
- 254,143 - - 254,143
- - 856,188 - 856,188
- - - 2,365,820 2,365,820
- - - 55,504 55,504
- 4,913,900 856,188 2,421,324 8,191,412
- 1,196,926 - - 1,196,926
- 791,850 64,999 228,212 1,085,061
- 3,378,671 171,640 153,698 3,704,009
- 10,281,347 1,092,827 2,803,234 14,177,408
541,051 (1,847,827) (531,699) (969,942) (3,349,468)
130,152 407,404 225 - 407,629
(20,478) (398,203) (21,510) (43,797) (463,510)
- (226,439) (53,318) (1,319,871) (1,599,628)
109,674 (217,238) (74,603) (1,363,668) (1,655,509)
650,725 (2,065,065) (606,302) (2,333,610) (5,004,977)
- 837,426 448,600 784,813 2,070,839
1,056,894 3,303,037 62,740 468,110 3,833,887
( 2,090,071) (3,221,965) - - (3,221,965)
( 1,033,177) 81,072 62,740 468,110 611,922
(382,452) (1,146,567) (94,962) (1,080,687) (2,322,216)
3,670,580 75,577,984 13,621,172 8,014,026 97,213,182
$ 3,288,128 $ 74,431,417 $ 13,526,210 $ 6 ,933,339 $ 94,890,966
The accompanying notes to the basic financial statements are an integral part of this statement.
- 51 -

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, 2011
(CONTINUED)
SANITARY DISTRICT SANITARY DISTRICT
SEWER WATER RESTRICTED
OPERATIONS OPERATIONS FUND
CASH FLOW FROM OPERATING ACTIVITIES
Receipts from customers and users $ 4 ,838,066 $ 2 ,037,932 $ 704,795
Receipts from other operating sources 1 32,768 1 41,395 -
Receipts from bond interest reimbursement - Build America Bond - - -
Payments to suppliers (1,700,809) (761,642) -
Payments to employees and on behalf of employees (2,586,127) (1,016,541) -
Net Cash Provided (Used) by Operating Activities 6 83,898 4 01,144 704,795
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in from other funds 1 ,706,498 5 39,645 -
Receipts (payments) from interfund loans (128,224) - -
Transfers to other funds - - (1,131,894)
Principal paid on interfund loans - - -
Net Cash Provided (Used) by Noncapital Financing Activities 1 ,578,274 5 39,645 (1,131,894)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds (loss) from the disposition of capital assets - - -
Receipts from capital grants - - -
Principal paid on capital debt (1,446,361) (455,435) -
Receipts from bonds, including premiums, net of issuance costs - - -
Interest paid on capital debt (312,427) (62,226) -
Acquisition and construction of capital assets (296,847) (88,725) -
Net Cash Provided (Used) by Capital and Related Financing Activities (2,055,635) (606,386) -
CASH FLOWS FROM INVESTING ACTIVITIES
Net Cash Provided by Investing Activities - Investment Income 1 02,881 5 3,536 120,835
Net Increase (Decrease) in Cash and Cash Equivalents 3 09,418 3 87,939 (306,264)
Balances - Beginning of the year 5 ,837,346 2 ,527,674 7,437,899
Balances - End of the year $ 6 ,146,764 $ 2 ,915,613 $ 7,131,635
Reconciliation of operating income (loss) to net cash
provided by operating activities
Operating income (loss) $ (2,841,119) $ (247,257) $ 699,498
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation 2 ,890,057 4 88,614 -
Effect of changes in operating assets and liabilities:
Accounts receivable, net (3,312) (16,226) 5,297
Special assessments receivable, net - - 193,371
Operating grants receivable 3 3,114 - -
Build America Bonds Interest receivable - - -
Inventories and Prepaid Expenses (55,832) - -
Vendor accounts payable 1 12,926 (15,271) -
Compensated absences 2 ,856 1 ,028 -
Other Post-Employment Benefit Obligation 6 01,594 1 90,256 -
Escrow deposits payable 1 ,920 - -
Deferred revenue collected in advance (58,306) - (193,371)
Net Cash Provided (Used) by Operating Activities $ 6 83,898 $ 4 01,144 $ 704,795
Noncash investing, capital and financing activities:
Donation of capital assets (infrastructure) by developers $ 7 51,231 $ 8 6,196 $ -
The accompanying notes to the basic financial statements are an integral part of this statement.
- 52 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
TOTAL
PRIMARY
SANITARY DISTRICT NON-MAJOR GOVERNMENT
DEBT SERVICE BAY BRIDGE ENTERPRISE ENTERPRISE
FUND TOTAL AIRPORT FUNDS FUNDS
$ 579,498 $ 8,160,291 $ 41,729 $ 1,664,367 $ 9,866,387
- 274,163 1,400,980 178,196 1,853,339
- - 2,857 14,512 17,369
- (2,462,451) (713,456) (1,250,604) (4,426,511)
- (3,602,668) (219,488) (1,322,312) (5,144,468)
579,498 2,369,335 512,622 (715,841) 2,166,116
1,056,894 3,303,037 62,740 468,110 3,833,887
280,682 152,458 377,884 403,629 933,971
(2,090,071) (3,221,965) - - (3,221,965)
(152,458) (152,458) (500,591) (125,147) (778,196)
(904,953) 81,072 (59,967) 746,592 767,697
- - (53,318) 15,000 (38,318)
- - 8,250 1,128,786 1,137,036
(50,586) (1,952,382) (41,919) (110,517) (2,104,818)
- - 13,540 605,493 619,033
(20,943) (395,596) (20,822) (82,219) (498,637)
- (385,572) (358,611) (1,262,143) (2,006,326)
(71,529) (2,733,550) (452,880) 294,400 (2,892,030)
130,152 407,404 225 - 407,629
(266,832) 124,261 - 325,151 449,412
3,925,026 19,727,945 - 514,308 20,242,253
$ 3,658,194 $ 19,852,206 $ - $ 839,459 $ 20,691,665
$ 541,051 $ (1,847,827) $ (531,699) $ (969,942) $ (3,349,468)
- 3,378,671 171,640 153,698 3,704,009
4,154 (10,087) 3,574 (7,874) (14,387)
460,683 654,054 - - 654,054
- 33,114 880,701 15,004 928,819
- - (37) (2,374) (2,411)
- (55,832) 64,198 9,374 17,740
- 97,655 (142,485) (198,524) (243,354)
- 3,884 1,531 37,559 42,974
- 791,850 64,999 228,211 1,085,060
- 1,920 200 39 2,159
(426,390) (678,067) - 18,988 (659,079)
$ 579,498 $ 2,369,335 $ 512,622 $ (715,841) $ 2,166,116
$ - $ 837,427 $ - $ - $ 837,427
The accompanying notes to the basic financial statements are an integral part of this statement.
- 53 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF FIDUCIARY NET ASSETS
PRIVATE PURPOSE TRUST, OTHER POST-EMPLOYMENT BENEFIT TRUST, AND AGENCY FUNDS
JUNE 30, 2011
PRIVATE
PURPOSE
TRUST FUND OTHER
TAX SALE POST-EMPLOYMENT AGENCY
DEPOSITS BENEFIT TRUST FUND FUNDS
ASSETS
Cash and Cash Equivalents $ 97,367 $ 765,084 $ 3 27,024
Miscellaneous Receivables - - 1 24,671
Total Assets 97,367 765,084 $ 4 51,695
LIABILITIES
Due to Other Governments - 155,731 $ 1 42,755
Deposits and Escrows - - 3 08,940
Total Liabilities - 155,731 $ 4 51,695
NET ASSETS
Held in Trust $ 97,367 $ 609,353
The accompanying notes to the basic financial statements are an integral part of this statement.
- 54 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
PRIVATE PURPOSE TRUST AND OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2011
PRIVATE
PURPOSE
TRUST FUND
TAX SALE
DEPOSITS
ADDITIONS
Total Additions - Tax Sale Collections in Excess of Tax Due $ 134,012
DEDUCTIONS
Distributions to Property Holders 3 16,900
Change in Assets ( 182,888)
NET ASSETS HELD IN TRUST
Net Assets-Beginning of Year 2 80,255
Net Assets-End of Year $ 9 7,367
OTHER
POST-EMPLOYMENT
BENEFIT TRUST FUND
ADDITIONS
CONTRIBUTIONS
Employers $ 2,188,722
Members 7 80,197
TOTAL CONTRIBUTIONS 2,968,919
Investment Income 1 ,736
Total Additions 2,970,655
DEDUCTIONS
Claims Paid 3,393,916
Change in Assets ( 423,261)
NET ASSETS HELD IN TRUST
Net Assets-Beginning of Year 1,032,614
Net Assets-End of Year $ 609,353
The accompanying notes to the basic financial statements are an integral part of this statement.
- 55 -

QUEEN ANNE'S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
INDEX
Note
1 Summary of Significant Accounting Policies 57-68
2 Budgets and Budgetary Accounting 68-69
3 Cash, Investments and Investment Income 69-71
4 Accounts Receivable 72-73
5 Deferred and Unearned Revenue 74
6 Capital Assets 75-80
7 Interfund Receivables and Payables 81
8 Interfund Transfers 82
9 Noncurrent Liabilities 83-92
10 Restricted Assets and Liabilities
and Fund Balances 93-95
11 Risk Management 96
12 Retirement Plans 97-99
13 Deferred Compensation Plan 99
14 Other Post-Employment Benefits 100-105
15 Deficit Equity Balances 106
16 Commitments and Contingencies 107
17 Joint Venture 108
18 Pollution Remediation Obligations 109
19 Subsequent Events 110
- 56 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the County conform to accounting principles generally accepted in the United
States of America (GAAP) applicable to local government entities. The following is a summary of significant
policies.
A. REPORTING ENTITY
Queen Anne’s County, Maryland (the County) was founded in 1706. The County is governed by five
Commissioners who are elected to serve four-year terms. This board assumes responsibilities conferred upon them
by the Maryland General Assembly under Code Home Rule and provides the following services: public safety,
public facility/infrastructure maintenance and improvements, sanitation, health and social services, education,
recreation and culture, library, conservation of natural resources, economic and community development, and
general administrative services.
As required by GAAP, these financial statements present the primary government and its component units, which
are entities for which the primary government is considered financially accountable. The decision to include a
potential component unit in the financial reporting entity was made by applying the criteria set forth in the
Government Accounting Standards Board (GASB) Statements No. 14 and 39. Blended component units, although
separate entities, are, in substance, part of the government’s operations. However, each discretely presented
component unit is reported in a separate column in the government-wide financial statements (see note below for
descriptions) to emphasize that it is legally separate from the government.
Blended Component Units
The Queen Anne’s County Sanitary District serves all the citizens of the government and is governed by a board
comprised of the government’s elected Commissioners. The rates for user charges and bond issuance
authorizations are approved by the Board of Commissioners and the legal liability for the general obligation portion
of the District’s debt remains with the government. The Sanitary District is reported as an enterprise fund.
The Queen Anne’s County Roads Board serves all the citizens of the government and is governed by a board
comprised of the government’s elected Commissioners. All operations of the Roads Board are approved by the
Board of Commissioners and the legal liability for any debt remains with the government. The Roads Board is
reported as a special revenue fund.
Discretely Presented Component Units
The Board of Education of Queen Anne’s County is a five-member body responsible for the operation of Queen
Anne’s County Schools. Beginning with the November 2008 election, the members were elected by the County
voters. The Board of Education is a component unit of Queen Anne’s County, Maryland by virtue of the Board’s
fiscal dependency on the County through the County’s responsibility for levying taxes, issuing debt, and its
budgetary control over the Board of Education.
The Queen Anne’s County Free Library is a component unit of the Queen Anne’s County Government by virtue of
the Library’s fiscal dependency on the County. The County levies taxes and approves the Library’s budget. The
Library Board of Trustees governs the Library. Vacancies on the Board of Trustees are filled by vote of the
remaining members of that Board.
The Queen Anne’s County Public Housing Authority is a component unit of the Queen Anne’s County Government
because the County Commissioners appoint the members of the Housing Authority’s Board of Commissioners. In
addition, the County contributes substantial financial and administrative resources to the Housing Authority on an
on-going basis, including an annual appropriation, office space and utilities, and administrative services for human
resources, accounting, and other functions.
- 57 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. REPORTING ENTITY (CONTINUED)
Complete financial statements of the discretely presented component units can be obtained from their respective
administrative offices listed below:
Board of Education of Queen Anne’s County Queen Anne’s County
Queen Anne’s County Housing Authority Free Library
202 Chesterfield Avenue c/o Queen Anne’s County 121 S. Commerce Street
Centreville, Maryland 21617 Finance Office Centreville, MD 21617
107 N. Liberty Street
Centreville, Maryland 21617
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 Assets – This statement is designed to display the financial position of the reporting entity as of
year-end. Governments report all capital assets, including infrastructure, in the government-wide Statement of Net
Assets and report depreciation expense, the cost of “using up” capital assets, in the Statement of Activities. Net
assets are divided into three categories: 1) invested in capital assets, net of related debt; 2) restricted; and 3)
unrestricted. Invested in capital assets, net of related debt consists of capital assets, net of accumulated
depreciation, and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that
are attributable to the acquisition, construction, or improvement of those capital assets. Restricted net assets are
assets for which constraints are placed due to restrictions that are either (1) externally imposed by creditors,
grantors, contributors, or laws and regulations of the government, or (2) imposed by law through constitutional
provisions or enabling legislation. Unrestricted net assets consist of net assets that do not meet the definition of
restricted or invested in capital assets, net of related debt.
- 58 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)
Statement of Activities – This statement demonstrates the degree to which the direct expenses of a given function
for the fiscal year are offset by program revenues. Therefore, this statement reflects both the gross and net costs
per functional category (general government; public safety; public works; health; social services; education; parks
and recreation; library; conservation of natural resources; and economic/community development) that are
otherwise supported by general revenues. Direct expenses (including depreciation) are those that are clearly
identifiable with a specific function. Program revenues include: 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function. The
operating grants and contributions column includes operating-specific and discretionary (either operating or capital)
grants, while the capital grants and contributions column reflects capital-specific grants. Taxes and other items not
properly included among program revenues are reported as general revenues. The County does not allocate
indirect expenses.
Fund Financial Statements – Separate financial statements are provided for governmental funds and proprietary
funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements.
In the fund financial statements, financial transactions and accounts of the County are organized on the basis of
funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for
with a separate set of self-balancing accounts that comprise assets, liabilities, fund balance/net assets, revenues,
and expenditures/expenses.
Governmental Fund Budget-to-Actual Comparison Statements – Demonstrating compliance with the legally
adopted budget is an important component of government’s accountability to the public. The County provides
budget-to-actual comparisons of the General Fund and individual major special revenue funds as part of the
required supplementary information subsection located after the Notes to the basic financial statements. In addition,
budget-to-actual comparisons are provided for the General Fund on a departmental level, and for all other individual
funds with legally adopted budgets in the supplementary information subsection.
The County and many other governments revise their original budgets over the course of the year for a variety of
reasons; the County’s amended budget is reflected in a separate column in the budget-to-actual comparison
statements. Variances are calculated based on final budgets.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
Measurement Focus and Basis of Accounting
Full Accrual Basis Financial Statements – The government-wide financial statements are reported using the
economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year in which they
are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by
the provider have been met. Capital assets and related depreciation are recorded in these statements, as well as
debt, accrued compensated absences, other post-employment benefits, and other accruals.
Modified Accrual Basis Financial Statements – Governmental fund financial statements are reported using the
current financial resources measurement focus and the modified accrual basis of accounting.
- 59 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
Revenues are recorded as soon as they are susceptible to accrual (i.e., when they are both measurable and
available). Revenues are considered to be available when they are collectible within the current period, or soon
enough thereafter to pay liabilities of the current period. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment has
matured and is due. Similarly, expenditures related to claims, judgments, compensated absences, and other post-
employment benefits are recorded only to the extent that they are expected to be liquidated with expendable
available financial resources. Capital assets, and related depreciation, as well as long-term liabilities are not
recorded in these statements.
In applying the susceptible to accrual concept to income taxes (distributed by the State), property taxes, and inter-
governmental revenues other than grants, the County defines “available” as received within 60 days after year-end.
In the State of Maryland, the State has assumed responsibility for the collection of all income taxes and for
distributing those collections to the respective counties. The counties set their individual tax rates within limits
provided by State law. However, collection and pursuit of delinquent taxes are the responsibility of the State. The
County records estimated receivables relating to income taxes when the underlying income is earned. Amounts not
received within 60 days are reported as deferred revenue. At year-end, deferred revenue relating to income taxes
primarily includes the final fiscal year distribution (which is normally received in September after the fiscal year-end)
and amounts related to late filers, delinquent returns and audits, and unallocated withholding, all of which are not
received within the County’s availability period. Most deferred revenue is expected to be received from the State
within the next fiscal year; however, collections related to delinquent returns and audits as well as unallocated
withholding may not be remitted to the County for several years.
In applying the susceptible to accrual concept to operating and capital grants, which are classified with
intergovernmental revenues in the fund financial statements, the County records receivables when the applicable
eligibility requirements including time requirements are met. Related revenues are recognized to the extent that
cash is expected to be received within one year of year-end. Resources received before the eligibility requirements
are met are reported as deferred revenue.
Licenses and permits, charges for services, and miscellaneous revenues (except earnings on investments) are
generally recorded as revenues when received in cash during the year. At year-end, receivables are recorded for
significant amounts due. If such amounts are received in cash after year-end within the County’s 60-day availability
period, they are recognized as revenue. Benefit assessment receivables not billed at year end are reported as
deferred revenue.
Fiduciary Funds – The County’s trust fund financial 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 assets. Therefore, agency funds are reported using the
accrual basis of accounting to recognize receivables and payables. Activity during the year is accounted for as
additions to and deductions from asset and liability accounts (for Agency Funds) and Net Assets (for Private
Purpose and Other Post-Employment Benefit Trust Funds). Since fiduciary funds are, by their very nature,
independent of the County, they are omitted from all government-wide statements.
Financial Statement Presentation - The County reports the following major governmental and proprietary funds,
as well as fiduciary funds.
- 60 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
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 and also Highway User
Tax funds.
School Impact Fees - This fund accounts for financial resources generated by new residential
construction and used for the construction of public school facilities or payment of school debt
relating to such construction.
Roads Board - This fund accounts for financial resources received from the State, plus a substantial
amount from the County, for the maintenance of County road infrastructure.
Non-Major Governmental Funds – There are fifteen non-major governmental funds, which are used to
account for and report the proceeds of specific revenue sources. Included in the fifteen non-major
governmental funds are special revenue funds and also two 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 6,500 customers.
Water Operations - This fund is used to account for the operation of the water supply
system serving approximately 4,000 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 Funds - This fund is used to account for the collection of special benefit
assessments, and financial resources from other sources, to fund debt associated with
construction of water and sewer facilities in accordance with debt covenants.
- 61 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(CONTINUED)
Bay Bridge Airport – This fund is used to account for the operation of the County’s airport that
serves small, private aircraft.
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 five non-major
enterprise funds, of which none are meant to be fully self-supporting. These funds include the Golf Course,
Recreation Programs, Public Landings, Property Management, and Public 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 participating agencies, which are: (1) Queen Anne’s County, Maryland, including the
Queen Anne’s County Public Housing Authority; (2) Queen Anne’s County Board of
Education; and (3) Queen Anne’s County Free Library. Other agencies and political
subdivisions have the right to participate in this Trust Fund also, as an investment vehicle for
their Other Post-Employment Benefit Plan through the pooling of investment resources.
Currently, the only other agency participating is Kent County, Maryland.
Agency Funds - These funds are used to account for assets, such as property taxes, held in a
purely custodial capacity where the County receives, temporarily invests, and remits such resources
to individuals, private organizations or other governments.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are
followed in both the government-wide and proprietary fund financial statements to the extent that those standards
do not conflict with or contradict guidance of GASB. Governments also have the option of following subsequent
private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The
County has elected not to follow subsequent private-sector guidance.
In the process of aggregating data for the Statement of Net Assets and the Statement of Activities, some amounts
reported as interfund activity and balances in the funds should be eliminated or reclassified. As a general rule, the
effect of interfund activity has been eliminated from the government-wide financial statements. The effect of
interfund services provided and used between functions has not been eliminated in the Statement of Activities, since
to do so would distort the direct costs and program revenues reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds are
charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses.
- 62 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY
1) Cash and Investments
Cash and Cash Equivalents – For Statement of Cash Flows reporting purposes, the County has
defined “cash equivalents” as short-term, highly liquid investments that are both readily convertible to
known amounts of cash and so near their maturity that they present an insignificant risk of changes in
value because of changes in interest rates. Generally, only investments with maturities of three
months or less at time of purchase meet this definition. The balance sheet classification for “cash and
cash equivalents” in the Statement of Cash Flows includes the following: “Equity in pooled cash and
investments,” “Cash and cash equivalents,” and “Restricted Equity in pooled cash and investments.”
2) Receivables and Payables
Due From/To Other Funds and Internal Balances – Activity between funds that are representative of
lending/borrowing arrangements outstanding at the end of the year are current and are referred to as
“due to/from other funds.” On the Statement of Net Assets, these balances are referred to as “internal
balances” and are reported as positive and negative “assets” that net to zero for the primary
government as a whole.
Trade Accounts Receivable – Trade and other receivables are shown net of an allowance for
uncollectible accounts. The allowance for uncollectible accounts is calculated based on historical
collection data and, in some cases, specific account analysis.
3) Inventories, Prepaids, and Other Assets
Inventories of materials, parts and supplies are stated at the lower of cost or market as determined by
the first-in, first-out method. For budgetary purposes, the cost is recorded as an expenditure at the
time individual inventory items are purchased (purchase method). The consumption method is used
for financial reporting purposes whereby expense is recognized as the items are used (consumed).
Reported inventories are equally offset by a fund balance reserve. Inventories in the Proprietary Funds
are also recorded using the consumption method.
Prepaid items are payments made to vendors for services that will benefit periods beyond the end of
the fiscal year.
4) Capital Assets
Capital assets, which include property, plant, equipment, intangibles, and infrastructure assets (e.g.
roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and
similar items) are reported in the applicable governmental or business-type activities columns in the
government-wide financial statements. The County defines capital assets as assets with an initial,
individual cost of $5,000 ($1,000 for computers) or more and an estimated useful life in excess of one
year. Such assets are valued at cost where historical records are available and at estimated historical
cost where no historical records exist. Donated capital assets are recorded at estimated fair market
value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value or functionality of the asset,
or materially extend asset lives, are not capitalized.
Land and other inexhaustible assets such as intangible property easements and other land usage
rights are capitalized but not depreciated, as these assets are expected to have indefinite useful lives.
- 63 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS 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) 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, 2011, the
other post-employment benefit obligation amounted to $16,531,461, including both governmental
($13,884,281) and business-type activities ($2,647,180).
Component Unit – Queen Anne’s County Housing Authority –For the year ended June 30, 2011,
the other post-employment benefit obligation for the Housing Authority amounted to $345,072.
Component Unit - Board of Education – For the year ended June 30, 2011, the other post-
employment benefit obligation for the Board of Education amounted to $14,794,329.
Component Unit – Free Library – For the year ended June 30, 2011, the other post-employment
benefit obligation for the Library amounted to $561,264.
- 64 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
6) Compensated Absences
Primary Government – The County’s policy is to pay employees for any unused vacation time, up to
a maximum of 65 days, upon termination of employment. Compensated absences are reported in
governmental funds only if they have matured, such as payments upon termination of employment,
vacation, and compensatory time paid as they are used during the year. Such time is paid as regular
wages. Compensated absences are reported in enterprise funds as they are accrued. In the
government-wide statements, 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 $2,501,833
at June 30, 2011, including both governmental ($2,162,071) and business-type activities ($339,762).
Component Unit – Queen Anne’s County Housing Authority –The Housing Authority’s employees
are employees of the primary government, which is ultimately liable for their salaries and benefits.
Therefore, for the year ended June 30, 2011 the County recognized a liability for compensated
absences for these employees as part of its governmental activities in the amount of $20,713.
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, 2011 amounted to
$823,162. Because payment of sick leave is contingent upon employees’ future illness or retirement,
the Board of Education expects its commitment to provide sick leave to be met during the normal
course of activities over the working lives of its present employees. Any accumulated unused sick
leave at retirement will ultimately be taken into consideration and paid through retirement benefits by
the State of Maryland.
7) Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the applicable
governmental activities, business-type activities, or proprietary fund type statements of net assets.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the bonds
outstanding method. Bonds payable in the proprietary fund financial statements and noncurrent
liabilities in the government-wide financial statements are reported net of the applicable bond premium
or discount. Bond issuance costs are generally reported as a deferred asset and amortized over the
term of the related debt using the straight-line method.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing
sources while discounts on debt issuances are reported as other financing uses. Issuance costs,
whether or not withheld from the actual debt proceeds received, are reported as expenditures. When
debt is refunded, payments to the Bond Refunding Agent and associated bond issuance costs are
reported as other financing uses.
- 65 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
8) Net Assets/Fund Equity
In the government-wide financial statements, the County has reported negative unrestricted net assets
of $61,193,944. This deficit is due to the fact that the County issues general obligation bonded debt for
purposes of capital construction on behalf of the Queen Anne’s County Board of Education. The
capital assets constructed with the proceeds of this debt are reported on the financial statements of
Queen Anne’s County Board of Education. This amount is also classified as net assets invested in
capital assets, net of related debt, in the Board of Education column of the Component Units section of
the County’s government-wide Statement of Net Assets. Since the Board of Education is not
authorized to borrow funds, they do not have any debt.
Since the issuance of such debt has not resulted in capital assets owned by the Primary Government,
the effect of this debt is reflected in a deficit balance in unrestricted net assets in the Governmental
Activities column of the government-wide Statement of Net Assets. At June 30, 2011, the County has
reported outstanding general obligation debt related to assets held by the Board of Education
amounting to $72,437,047 (of which $60,933,189 has been spent and the remaining $11,503,858
relates to unspent bond proceeds). Absent the effect of this relationship, the County would have
reported unrestricted net assets of governmental activities in the amount of $11,243,103.
The County reports a portion of its net assets in its government-wide financial statements as restricted.
In this context, restricted means that, as of June 30, 2011, this portion of net assets was restricted for a
particular purpose either by external parties; by provision of the County Charter; or by enabling
legislation. Net assets restricted by enabling legislation represent legislative restrictions that a party
external to the government can compel the government to honor. For the County, such amounts
represent primarily accumulated net assets attributed to revenue streams that are restricted for
specified purposes in the County Code. This generally includes Capital Projects Fund impact fee
collections and developer exactions on hand for outside entities; ending fund balances of substantially
all special revenue funds; and ending unrestricted net assets of the Sanitary District and other
enterprise funds. Such amounts, which are restricted net assets in the government-wide statement of
Net Assets, are as follows at year-end:
Restricted Net Assets
Governmental activities $ 22,399,514
Business-type activities:
Debt Service $ 3 ,288,572
Capital / Debt Service 6 ,388,195
Business-Type Operations 6 ,391,838
Capital Projects 7 53,300 16,821,905
Total Restricted Net Assets $ 39,221,419
- 66 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
8) Net Assets/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 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 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.
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 can occur in other
governmental funds.
9) Property Tax
The County's real property tax is levied each July 1 on the assessed values certified as of that date for
all taxable real property located in the County. The levy functions as a lien against the property.
Assessed values are established by the Maryland State Department of Assessments and Taxation at
estimated market value. A revaluation of all property is required to be completed every three years.
Taxes are then billed to property owners and collected by the County. Property represented by
delinquent taxes is sold at a public auction in May of the following calendar year, with title transferring
after foreclosure proceedings have been completed.
For 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.
- 67 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
9) 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 State Department of Assessments and Taxation without public notice and only
after public hearings. The County tax rate for the fiscal year ended June 30, 2011 was $0.7671 per
$100 of assessed value.
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING
Pursuant to the Code of Public Local Laws of Queen Anne's County, the County Commissioners adopt an
annual operating budget and real property tax rate prior to July 1 each year. This action, taken after public
hearings, provides the spending authority for the fiscal year beginning on July 1. Unexpended and
unencumbered appropriation authority expires the following June 30, except in the case of Capital Projects
where appropriations lapse only upon completion or cancellation of each project by the County Commissioners.
The appropriated budgets are prepared at the fund, function, and department level. Expenditures/expenses
may not legally exceed appropriations, based on the level at which they were adopted. For the General Fund,
annual expenditure budgets are legally adopted at the Departmental level. For all other governmental Funds,
for which annual budgets are adopted, expenditure budgets are legally adopted at the Fund level.
During the fiscal year, the Commissioners may adopt supplemental appropriations. For the year ended
June 30, 2011, supplemental appropriations are as follows:
Original Final Increase /
Supplemental Appropriations Budget Budget (Decrease)
General Fund - expenditures and transfers $ 109,294,541 $ 113,892,277 $ 4 ,597,736
Special Revenue Funds that adopt annual budgets
Major - Roads Board - expenditures $ 5,260,111 $ 5,273,843 $ 1 3,732
Non-Major that adopt annual budgets -
Department of Aging - expenditures 2,694,221 2,739,167 4 4,946
Housing and Community Services - expenditures 680,142 1,670,439 990,297
Community Partnerships for Children - expenditures and transfers 1,526,697 1,443,205 (83,492)
Law Library - expenditures 72,300 83,800 11,500
Rural Legacy - expenditures - 1,131,905 1,131,905
Purchase of Development Rights - expenditures and transfers - 307,390 307,390
Dredging Special Assessments - expenditures 42,189 44,425 2,236
Fire Company Impact Fees - expenditures - 296,873 296,873
Parks & Rec Impact Fees - transfers - 323,525 323,525
Total Special Revenue Funds that adopt annual budgets $ 10,275,660 $ 13,314,572 $ 3 ,038,912
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.
- 68 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING (CONTINUED)
Annual operating budgets are legally adopted for the General Fund, School Impact Fees Capital Projects
Funds, Roads Board Operating Fund, and the following non-major governmental funds: Department of Aging,
Housing and Community Services, Community Partnerships for Children, Dredging Special Assessments, Kent
Narrows, Law Library, Inmate Welfare, Agricultural Transfer, Rural Legacy, Fire Impact Fee Capital Projects,
Parks and Recreation Impact Fee Capital Projects, and Purchase of Development Rights Funds. Proprietary
Fund budgets are adopted for management control only and include all enterprise funds. Budgets are adopted
using the same method of accounting as that used for Fund reporting purposes.
Budgets for the General Capital Projects Fund and the Roads Capital Projects Fund reflect multi-year
appropriations at the individual project level. Expenditures may not legally exceed appropriations at that level
and appropriations lapse at the completion or cancellation of individual projects. In that these capital projects
funds do not adopt an annual budget per project, a Statement of Revenues, Expenditures, and Changes in
Fund Balances on a budget-to-actual basis is not presented for these funds.
GENERAL FUND
No General Fund Departments exceeded their legally adopted expenditure budgets for the year ended June 30,
2011. However, salary reversions are budgeted as a lump sum negative $610,000, but actual amounts are
realized in the individual departments and are not reported as a lump sum in the Reversions activity.
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME
A. DEPOSITS AND INVESTMENTS
PRIMARY GOVERNMENT, PUBLIC HOUSING AUTHORITY, AND FIDUCIARY FUNDS
Cash and investments were as follows at year-end:
Collected
Primary Government, Public Housing & Fiduciary Carrying Bank Balances Total
Cash and Investments Amount or Fair Value Collateral
Demand Deposit Accounts, Short-Term
Certificates of Deposit and Petty Cash $ 22,130,019 $ 22,821,164 $ 30,269,829
Investment in Maryland Local
Government Investment Pool (MLGIP) 47,981,052 47,976,962 48,936,501
$ 70,111,071 $ 70,798,126 $ 79,206,330
Cash and investments reconcile to the basic financial statements as follows:
Primary Component Unit-
Cash and Investments Government Housing Authority Fiduciary Total
Unrestricted
Equity in Pooled Cash and Investments $ 55,574,824 $ 2,123,122 $ 1,189,475 $ 58,887,421
Cash and Cash Equivalents - 334,490 - 334,490
Restricted
Equity in Pooled Cash and Investments 10,789,829 - - 10,789,829
Investments - 99,331 - 99,331
$ 66,364,653 $ 2,556,943 $ 1,189,475 $ 70,111,071
- 69 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
PRIMARY GOVERNMENT, PUBLIC HOUSING AUTHORITY, AND FIDUCIARY FUNDS (CONTINUED)
At year-end, the carrying amount of combined deposits was $22,130,019. The collected bank balances
were $22,861,164 and of those balances, $1,003,183 was insured by federal depository insurance (FDIC).
The uninsured balances were fully collateralized by securities placed with the respective banks’ escrow
agents and held in the County’s name.
Statutes authorize the County to invest in obligations of the United States Government, Federal government
agency obligations, secured time deposits in Maryland banks, bankers’ acceptances, the Maryland Local
Government Investment Pool, money market mutual funds, commercial paper and repurchase agreements
secured by direct government or agency obligations.
Of these options, the County participates in the Maryland Local Government Investment Pool (MLGIP), which
provides all local government units of the state with a safe investment vehicle for short-term investment of
funds. The State Legislature created MLGIP by enacting Section 22G of Article 94 of the Annotated Code of
Maryland. PNC Financial manages the MLGIP, under administrative control of the State Treasurer. A MLGIP
Advisory Committee of current participants reviews the activities of the Fund on a quarterly basis and provides
suggestions to enhance the pool. Standard and Poors rates the MLGIP as AAAm. The MLGIP seeks to
maintain a constant value of $1 per unit. Unit value is computed using the amortized cost method. In addition,
the net asset value of the pool, marked to market, is calculated and maintained on a weekly basis to ensure a
$1 per unit constant value.
As of June 30, 2011, the County’s investments, for both custodial and credit risk purposes, consisted solely
of shares in the MLGIP. This investment is not deemed to have either risk and is in conformity with the
County’s policy relating to minimal credit risk of investments.
COMPONENT UNITS (BOARD OF EDUCATION AND LIBRARY)
Component Unit - Board of Education - At year-end, the carrying amount of deposits was $13,772,461,
including $300,000 in certificates of deposit and excluding the carrying amount of fiduciary funds. The bank
balances were $14,490,468. At June 30, 2011, the Board’s bank deposits were approximately $1.1 million in
excess of limits insured by federal deposit insurance. The uninsured balances were fully collateralized by
securities held by the agent of the Board, in the Board’s name. In addition, the Board had approximately
$1,600 cash on hand at June 30, 2011.
Component Unit – Library - At year-end, the carrying amount of all bank deposits, including a $650,441
certificate of deposit, was $1,353,677, while collected bank balances were $1,358,069. Of the bank
balances, $585,313 was secured by the FDIC and $772,756 was secured by collateral held by the pledging
bank’s trust department but not in the Library’s name.
- 70 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 3 – CASH, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)
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
General Fund $ 50,109
Other Funds 23,842
Unrestricted Revenue 73,951
Restricted Revenue 62,572
Total Investment Income $ 136,523
Business-Type Funds
Major Enterprise Funds
Sanitary District $ 407,404
Airport 225
Total Investment Income $ 407,629
- 71 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 4 - ACCOUNTS RECEIVABLE
Receivables as of June 30, 2011 for the governmental and business-type activities are as follows:
Total
General Roads School Non-Major Total Total Governmental
General Capital Capital Impact Fees Roads Governmental Governmental Enterprise and Enterprise
Accounts Receivable Fund Projects Projects Capital Board Funds Funds Funds Funds
Receivables
Taxes - Real Property $ 1 59,513 $ - $ - $ - $ - $ - $ 159,513 $ - $ 159,513
Taxes - Other 9 4,691 122,022 - - - - 216,713 - 216,713
Subtotal Taxes 2 54,204 122,022 - - - - 376,226 - 376,226
Other Accounts Receivable:
Health Department 2 00,000 - - - - - 200,000 - 200,000
Retirees Insurance 2 7,547 - - - - - 27,547 - 27,547
Sheriff's Department 1 8,982 - - - - - 18,982 - 18,982
Board of Education - - - - 60,113 - 60,113 - 60,113
Governmental Funds - User Fees - - 1 9,518 - - - 19,518 - 19,518
Sanitary District - User and Septage Fees - - - - - - - 455,037 455,037
Purchase of Development Rights - - - - - 77,132 77,132 - 77,132
Airport - Fuel Sales and User and Rental Fees - - - - - - - 112,807 112,807
Miscellaneous Receivables 2 0,313 2 ,036 - - 2,724 37,137 62,210 61,162 123,372
Subtotal Other Accounts Receivable 2 66,842 2 ,036 1 9,518 - 62,837 114,269 465,502 629,006 1,094,508
Loans Receivable - - - 4 19,329 - 3,935,131 4,354,460 - 4,354,460
Subtotal Other Accounts and Loans Receivable 2 66,842 2 ,036 1 9,518 4 19,329 62,837 4,049,400 4,819,962 629,006 5,448,968
Special Assessments - - 455,933 - - 683,394 1,139,327 - 1,139,327
Intergovernmental
Income Taxes Held by State 8 ,748,190 - - - - - 8,748,190 - 8,748,190
Grants Receivable 7 12,315 230,351 686,352 - 218,525 504,888 2,352,431 154,469 2,506,900
State-Shared Highway User Tax - - - - 47,816 - 47,816 - 47,816
Bonds Receivable 1 ,749,459 - - - - - 1,749,459 - 1,749,459
Subtotal Intergovernmental 1 1,209,964 230,351 686,352 - 266,341 504,888 12,897,896 154,469 13,052,365
Restricted Receivables
Accounts Receivable - - - - - - - 47,578 47,578
Special Assessments - - - - - - - 2,770,611 2,770,611
Subtotal Restricted Receivables - - - - - - - 2,818,189 2,818,189
Total Receivables $ 1 1,731,010 $ 354,409 $ 1,161,803 $ 4 19,329 $ 329,178 $ 5,237,682 $ 19,233,411 $ 3,601,664 $ 22,835,075
Note that receivables from Component Units are not included in the above table.
- 72 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 4 - ACCOUNTS RECEIVABLE (CONTINUED)
The County expects to receive all receivables listed in the table within one year, excluding the following items.
Intergovernmental receivables include bonds receivable from four other counties. In years 1994, 2000, and 2003,
Queen Anne’s County sold $1,000,000, $2,815,000, and $710,000, respectively, of its general obligation bonds
for the purpose of providing the local share of capital projects at Chesapeake College. Five counties, including
Queen Anne’s County, provide local support for the College. The other four counties supporting Chesapeake
College have provided their bonds to Queen Anne’s County as evidence of their requirement to reimburse their
portion of the debt service. Bonds are amortized over the 20-year life of each of the original Queen Anne's
County Bonds. The current carrying value for the bonds receivable from the other four counties are $182,400,
$1,220,000, and $347,059, respectively, for a total of $1,749,459. The College bills and collects from the original
five counties an amount sufficient to cover this debt service and reimburses this amount to Queen Anne’s County
on a semi-annual basis.
Loans receivable in the amount of $4,354,460 relate to the Housing, Impact Fees, and Revolving Loan Special
Revenue Funds. Loans receivable in the amount of $3,664,409 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 $175,683 are also repaid over a number of years.
The remaining loan receivable balance of $514,368 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 $8,748,190 have been estimated by the State as income tax due
for “tax years” 2010 and prior. It may take five years or longer for the State to receive all amounts relating to
these “tax years” and remit those monies to the County. However, the State indicates that this is a reasonable
estimate of their liability to the County and the County reports this amount in accordance with GAAP.
Special Assessments in the amount of $1,139,327 represent receivables for governmental activities. Part of this
amount consists of $455,933 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 $683,394 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 $2,770,611 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.
- 73 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 5 – DEFERRED OR UNEARNED REVENUE
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. In addition, governmental funds and
governmental activities defer revenue recognition in connection with resources that have been received, but
unearned. At the end of the current fiscal year, the components of unavailable revenue and unearned
revenue were reported as follows:
Deferred Revenue Unavailable Unearned Total
General Fund
Income Taxes Due from State $ 6 ,213,478 $ - $ 6 ,213,478
Property Taxes Receivable 78,885 - 78,885
Property Tax Deferrals - 16,375 16,375
Inter-governmental Bonds Receivable 1,749,459 - 1,749,459
Grant Drawdowns in Excess of Expenditures - 9,314 9,314
Subtotal 8,041,822 25,689 8,067,511
General Capital Projects Fund
Grant Drawdowns in excess of Expenditures - 80,307 80,307
Roads Capital Projects Fund
Benefit Assessments Receivable Not Currently Due - 455,933 455,933
Benefit Assessments Paid in Advance - 59,967 59,967
Subtotal - 515,900 515,900
School Impact Fees Fund
Impact Fees Loans Receivable Not Currently Due - 419,329 419,329
Roads Board Operating Fund
Inspection Fees Collected In Advance - 586,402 586,402
Non-Major Governmental Funds
Grant Drawdowns in Excess of Expenditures - 57,330 57,330
Benefit Assessments Receivable Not Currently Due - 683,394 683,394
Impact Fees Loans Receivable Not Currently Due - 95,039 95,039
Subtotal - 835,763 835,763
Total Deferred Revenue $ 8 ,041,822 $ 2,463,390 $ 1 0,505,212
- 74 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 6 – CAPITAL ASSETS
PRIMARY GOVERNMENT
Changes in the County’s capital assets for governmental activities for the year ended June 30, 2011 are
summarized as follows, with depreciation shown separately. Assets resulting from completed capital projects
are shown in the Construction in Progress Transfers column. Asset retirements are show in the Decreases
column.
Construction
Balance in Progress Balance
Governmental Activities June 30, 2010 Increases Transfers Decreases June 30, 2011
Capital Assets, not being depreciated:
Land $ 3 7,867,259 $ - $ 1,385,365 $ ( 159,882) $ 39,092,742
Intangible Rights - Easements 1 3,390 - - - 13,390
Land Improvements 1 ,796,268 - - - 1,796,268
Construction in Progress 1 1,616,229 4 ,422,434 ( 7,668,861) ( 198,774) 8,171,028
Land - Inexhaustible Infrastructure Improvements 4 0,055,352 - 606,726 - 40,662,078
Total Capital Assets, not being depreciated 9 1,348,498 4 ,422,434 ( 5,676,770) ( 358,656) 89,735,506
Capital Assets, being depreciated:
Buildings and Building Improvements 3 5,066,000 3 5,040 4,959,022 ( 227,064) 39,832,998
Improvements other than Buildings 5 ,517,458 1 6,130 359,008 - 5,892,596
Vehicles 9 ,618,064 3 52,304 - (755,441) 9,214,927
Equipment 8,729,425 9 2,785 - (510,136) 8,312,074
Furniture and Fixtures 10,640,694 3 7,134 - ( 95,969) 10,581,859
Infrastructure Improvements - Depreciable 1 5,491,275 - 358,740 - 15,850,015
Total Capital Assets, being depreciated 8 5,062,916 5 33,393 5,676,770 ( 1,588,610) 89,684,469
Less Accumulated Depreciation for:
Buildings and Building Improvements 8 ,200,331 8 56,016 - (3,557) 9,052,790
Improvements other than Buildings 9 47,099 1 68,294 - - 1,115,393
Vehicles 5 ,736,190 6 87,325 - (668,557) 5,754,958
Equipment 5,808,965 4 85,331 - (508,889) 5,785,407
Furniture and Fixtures 6 ,065,898 1,081,613 - ( 95,969) 7,051,542
Infrastructure Improvements - Depreciable 6 ,528,714 2 55,213 - - 6,783,927
Total Accumulated Depreciation 3 3,287,197 3,533,792 - (1,276,972) 35,544,017
Total Capital Assets, being depreciated, net 5 1,775,719 (3,000,399) 5,676,770 ( 311,638) 54,140,452
Governmental activities Capital Assets, net $ 1 43,124,217 $ 1,422,035 $ - $ (670,294) $ 143,875,958
- 75 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
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, 2011 are
summarized as follows, with depreciation shown separately. Completed projects that were reclassified from
construction in progress (CIP) to other asset accounts during the year are reported in the same column, as
retirements from CIP and transfers to other asset accounts.
Construction
Balance In Progress Balance
Business-Type Activities June 30, 2010 Increases Transfers Decreases June 30, 2011
Capital Assets, not being depreciated:
Land $ 12,974,006 $ - $ - $ - $ 12,974,006
Land Improvements 16,162 - - - 16,162
Intangible Rights - 6,140 - - 6,140
Construction in Progress 5,199,865 1,737,157 (1,381,340) (69,310) 5,486,372
Land - Inexhaustible Infrastructure Improvements 1,219,298 - - - 1,219,298
Total Capital Assets, not being depreciated 19,409,331 1 ,743,297 (1,381,340) (69,310) 19,701,978
Capital Assets, being depreciated:
Buildings and Improvements to Buildings 18,218,809 1 3,451 15,497 (1,494,595) 1 6,753,162
Improvements other than Buildings 6,407,390 - 559,519 - 6,966,909
Vehicles 1,293,894 1 44,064 - (114,170) 1 ,323,788
Equipment 21,895,691 222,696 - (318,682) 2 1,799,705
Furniture and Fixtures 87,538 - - (3,344) 84,194
Infrastructure Improvements - Depreciable 68,224,214 837,427 806,324 (226,763) 6 9,641,202
Total Capital Assets, being depreciated 116,127,536 1 ,217,638 1,381,340 (2,157,554) 116,568,960
Less Accumulated Depreciation for:
Buildings and Improvements to Buildings 5,799,386 668,247 - (173,790) 6 ,293,843
Improvements other than Buildings 2,269,759 2 52,559 - - 2,522,318
Vehicles 884,181 89,594 - (111,842) 8 61,933
Equipment 6,565,209 1,038,220 - (275,885) 7 ,327,544
Furniture and Fixtures 65,710 4,352 - (3,344) 66,718
Infrastructure Improvements - Depreciable 19,591,850 1,651,037 - (31,374) 21,211,513
Total Accumulated Depreciation 35,176,095 3,704,009 - (596,235) 3 8,283,869
Total Capital Assets, being depreciated, net 80,951,441 (2,486,371) 1,381,340 (1,561,319) 78,285,091
Business-Type activities Capital Assets, net $ 100,360,772 $ (743,074) $ - $ (1,630,629) $ 97,987,069
- 76 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
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 $ 229,038
Public Safety 1,586,318
Public Works 905,611
Health 10,117
Social Services 354,639
Parks and Recreation 374,004
Library 23,611
Conservation of Natural Resources 15,739
Economic/Community Development 34,715
$ 3,533,792
Business-Type Activities
Major Enterprise Funds:
Sanitary District $ 3,378,671
Airport 171,640
Non-Major Enterprise Funds:
Parks and Recreation $ 145,667
Public Marinas 8,031 153,698
$ 3,704,009
- 77 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS
Board of Education: Capital asset activity for the year ended June 30, 2011 is as follows:
Balance Balance
Board of Education June 30, 2010 Increases Decreases June 30, 2011
Capital Assets, not being depreciated:
Land $ 6,363,040 $ - $ - $ 6,363,040
Construction in Progress 4,650,425 14,295,149 (528,380) 18,417,194
Total Capital Assets, not being depreciated 11,013,465 14,295,149 (528,380) 24,780,234
Capital Assets, being depreciated:
Land Improvements 4,569,849 64,155 (12,000) 4,622,004
Buildings 150,217,309 387,290 - 150,604,599
Furniture and Equipment 9,652,126 640,380 (284,218) 10,008,288
Total Capital Assets, being depreciated 164,439,284 1,091,825 (296,218) 165,234,891
Less Accumulated Depreciation for:
Land Improvements 3,159,505 135,070 (12,000) 3,282,575
Building 31,213,651 2,913,316 - 34,126,967
Furniture and Equipment 6,827,241 530,889 (260,290) 7,097,840
Total Accumulated Depreciation 41,200,397 3,579,275 (272,290) 44,507,382
Total Capital Assets, being depreciated, net 123,238,887 (2,487,450) (23,928) 120,727,509
Capital Assets, net $ 134,252,352 $ 11,807,699 $ (552,308) $ 145,507,743
- 78 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS (CONTINUED)
Queen Anne’s County Free Library: Capital asset activity for the year ended June 30, 2011 is as follows:
Balance Balance
Library June 30, 2010 Increases Decreases June 30, 2011
Capital Assets, not being depreciated:
Artwork $ 29,850 $ - $ - $ 29,850
Capital Assets, being depreciated:
Books and Media 2,285,752 154,915 (48,304) 2,392,363
Building Improvements 239,072 - - 239,072
Total Capital Assets, being depreciated 2,524,824 154,915 (48,304) 2,631,435
Less Accumulated Depreciation for:
Books and Media 1,523,598 101,447 (43,474) 1,581,571
Building Improvements 97,285 6,130 - 103,415
Total Accumulated Depreciation 1,620,883 107,577 (43,474) 1,684,986
Total Capital Assets, being depreciated, net 903,941 47,338 (4,830) 946,449
Capital Assets, net $ 933,791 $ 47,338 $ (4,830) $ 976,299
- 79 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 6 – CAPITAL ASSETS (CONTINUED)
COMPONENT UNITS (CONTINUED)
Queen Anne's County Housing Authority: Capital asset activity for the year ended June 30, 2011 is as
follows:
Construction
Balance in Progress Balance
Housing Authority June 30, 2010 Increases Transfers Decreases June 30, 2011
Capital Assets, not being depreciated:
Land $ 784,639 $ - $ - $ - $ 784,639
Land Improvements 212,722 - - - 212,722
Construction in Progress 354,366 728,785 (714,660) - 368,491
Total Capital Assets, not being depreciated 1,351,727 7 28,785 (714,660) - 1,365,852
Capital Assets, being depreciated:
Buildings and Improvements 20,991,738 - 524,096 - 21,515,834
Vehicles 23,490 - - - 23,490
Furniture, Fixtures, and Equipment 227,264 - 159,131 - 386,395
Infrastructure 141,396 - - - 141,396
Total Capital Assets, being depreciated 21,383,888 - 683,227 - 22,067,115
Less Accumulated Depreciation for:
Buildings and Improvements 3,316,894 4 42,994 (31,433) - 3,728,455
Vehicles 19,379 2,349 - - 21,728
Furniture, Fixtures, and Equipment 131,865 14,268 - - 146,133
Infrastructure 943 2,828 - - 3,771
Total Accumulated Depreciation 3,469,081 4 62,439 (31,433) - 3,900,087
Total Capital Assets, being depreciated, net 17,914,807 (462,439) 714,660 - 18,167,028
Capital Assets, net $ 19,266,534 $ 266,346 $ - $ - $ 19,532,880
- 80 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 7 - INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables are usually used by the County to cover temporary cash deficits in individual
funds until grant or similar resources are received. Occasionally, these receivables and payables are used in
lieu of short-term external borrowing, such as for capital lease agreements.
Intra-entity receivables and payables usually relate to capital construction projects, wherein the primary
government records a liability to its component unit at year-end while the component unit records a payable to
the contractor.
The interfund and intra-entity receivables and payables consist of the following at June 30, 2011:
Due from Fund
Total Due From
General Non-Major Sanitary Bay Bridge Non-Major Housing Authority Other Funds /
Capital Projects Governmental District Airport Enterprise Subtotal Component Unit Component Units
Due to Fund
General Fund $ - $ 258,660 $ - $ 377,884 $ 3 73,629 $ 1,010,173 $ 120,082 $ 1,130,255
General Capital Projects - 68,775 - - - 68,775 - 68,775
Sanitary District - - 280,682 - - 280,682 - 280,682
Non-Major Enterprise - - - - 20,000 20,000 - 20,000
Board of Education -
Component Unit 3 ,008,665 - - - - 3,008,665 - 3,008,665
Total Due to Other Funds $ 3 ,008,665 $ 3 27,435 $ 280,682 $ 3 77,884 $ 3 93,629 $ 4,388,295 $ 120,082 $ 4,508,377
Interfund receivables and payables are reported on the Statement of Net Assets as Internal Balances, net of
transactions between the same types of funds.
- 81 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
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, 2011:
Transfers in Fund
Total General General Non-Major Major Non-Major Total
Transfers Out Fund Capital Projects Governmental Enterprise Enterprise Transfers In
Transfers Out Fund
General Fund $ 2 ,922,343 $ - $ 125,000 $ 2,185,421 $ 1 43,812 $ 468,110 $ 2 ,922,343
General Capital Projects (1) 1 ,680,551 8 49,467 - 214,741 - - 1,064,208
Roads Capital Projects 1 0,000 - 10,000 - - - 1 0,000
Impact Fees - Schools 1 ,408,120 1 ,408,120 - - - - 1,408,120
Total Major Governmental Funds 6 ,021,014 2 ,257,587 1 35,000 2 ,400,162 1 43,812 468,110 5 ,404,671
Non-Major Governmental 5 93,507 6 2,982 5 30,525 - - - 5 93,507
Sanitary District - Restricted 1 ,131,894 - - - 1,131,894 - 1,131,894
Sanitary District - Debt Service 2 ,090,071 - - - 2,090,071 - 2,090,071
Total Major Enterprise Funds 3 ,221,965 - - - 3,221,965 - 3,221,965
Total Transfers Out $ 9 ,836,486 $ 2 ,320,569 $ 6 65,525 $ 2,400,162 $ 3 ,365,777 $ 468,110 $ 9 ,220,143
(1) In fiscal year 2011, the General Capital Projects Fund transferred 2009 bond proceeds in the amount of
$616,343 to various Enterprise Funds. Public Marinas received $594,171, the Airport received $11,104, and
Public Landings received $11,068. The transaction was appropriately recorded on the Enterprise Fund books
as an increase in debt liability and on the General Capital Projects Fund’s book as a transfer out. Since
enterprise funds and governmental funds record such transactions differently, the $616,343 is reported in the
above table only as a transfer out with no corresponding transfer in.
- 82 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 9 – NONCURRENT LIABILITIES
A. CHANGES IN NONCURRENT LIABILITIES
During the year ended June 30, 2011, 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, 2010 of new debt Repayments June 30, 2011 One Year One Year
General Bonds Payable $ 88,859,439 $ 21,532,570 $ 6,822,151 $ 103,569,858 $ 7 ,109,959 $ 9 6,459,899
Notes Payable 1 ,652,082 3 65,000 946,450 1,070,632 1 81,492 8 89,140
Bond Premiums, Net of
Issuance Costs 5 97,952 9 ,465 66,070 541,347 6 5,729 4 75,618
Deferred Refunding Costs (1,489,959) - (170,483) (1,319,476) (170,483) (1,148,993)
Capital Leases 1 05,884 - 51,795 54,089 5 4,089 -
8 9,725,398 21,907,035 7,715,983 103,916,450 7 ,240,786 9 6,675,664
Other Post-Employment Benefit Obligation 8 ,548,639 6,171,434 835,792 13,884,281 - 13,884,281
Compensated Absences 2 ,434,947 1,147,291 1,420,167 2,162,071 1,379,933 7 82,138
$ 1 00,708,984 $ 29,225,760 9,971,942 $ 119,962,802 $ 8 ,620,719 $ 1 11,342,083
Less College Reimbursements ( 239,495)
$ 9,732,447
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 $ 6 ,822,151
Notes Payable 9 46,450
Capital Leases 5 1,795
LESS: Distributions of 2009 Bonds ( 616,343)
LESS: College Reimbursements ( 239,495)
Total Principal Payments $ 6 ,964,558
The County added amounts to several bond offerings on behalf of Chesapeake College, which cannot borrow
money on its own. This year, the College reimbursed to the County $239,495 for this year’s principal and
interest payments. However, since the County is one of five Counties supporting the College, we paid the
College $60,524 this year for our part of the debt.
- 83 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2011, 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, 2010 of new debt Repayments June 30, 2011 One Year One Year
Golf Course $ 8 41,075 $ - $ 75,000 $ 766,075 $ 80,000 $ 686,075
Airport 6 73,127 13,534 41,919 644,742 42,721 602,021
Public Landings 2 9,936 11,068 1,228 39,776 1,624 38,152
Public Marinas 3 74,672 594,171 34,289 934,554 46,347 888,207
Sanitary District 1 9,782,739 - 1,952,382 1 7,830,357 1,946,420 15,883,937
Subtotal Debt 2 1,701,549 618,773 2,104,818 2 0,215,504 2,117,112 18,098,392
Bond Premiums, Net of
Issuance Costs
Golf Course 2 6,514 - 2,651 23,863 2,651 21,212
Airport 8 ,385 6 834 7,557 836 6,721
Public Landings 1 2 4 1 15 1 14
Public Marinas 1 29 248 30 347 18 329
Deferred Refunding Costs
Golf Course (58,883) - (5,889) (52,994) (5,888) (47,106)
Airport (18,473) - (1,847) (16,626) (1,847) (14,779)
Sanitary District (47,500) - (20,833) (26,667) (13,333) (13,334)
Subtotal Bond Premiums, Issuance
and Deferred Refunding Costs (89,816) 258 (25,053) (64,505) (17,562) (46,943)
Subtotal Debt before Other Post-Employment
Benefit Obligation and Compensated Absences 2 1,611,733 619,031 2,079,765 2 0,150,999 2,099,550 18,051,449
Other Post-Employment Benefit Obligation 1 ,562,119 1,085,061 - 2,647,180 - 2,647,180
Compensated Absences 2 96,788 216,074 173,100 339,762 216,852 122,910
$ 2 3,470,640 $ 1,920,166 $ 2,252,865 $ 23,137,941 $ 2,316,402 $ 20,821,539
Additions of new debt listed above in the amount of $618,773 represent distributions of the 2009 bonds in the
amount of $616,343 (see comment in Note 8), and also distributions of the 2011 bonds in the amount of $2,430.
- 84 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
A. CHANGES IN NONCURRENT LIABILITIES (CONTINUED)
During the year ended June 30, 2011, the following changes occurred in the noncurrent liabilities of the primary
government’s Component Units:
COMPONENT UNITS Retirements Due in
Board of Education, Free Library, Balance Additions and Balance Due Within More than
and Housing Authority June 30, 2010 of new debt Repayments June 30, 2011 One Year One Year
Queen Anne's County
Board of Education
Capital Lease $ 82,206 $ - $ 77,646 $ 4 ,560 $ 4,560 $ -
Retirement Incentives - 282,531 - 282,531 2 57,694 24,837
Compensated Absences 926,197 97,326 200,361 823,162 2 29,848 593,314
Other Post-Employment Benefit Obligation 9,535,459 5,258,870 - 14,794,329 - 14,794,329
Subtotal 10,543,862 5,638,727 278,007 15,904,582 4 92,102 15,412,480
Free Library
Other Post-Employment Benefit Obligation 339,566 221,698 - 561,264 - 561,264
Housing Authority
Terrapin Grove Phase II Loan 654,314 - 40,908 613,406 40,908 572,498
Scattered Site Housing
Reimbursement to County for
Portion of 2003 Bonds 246,447 - 13,917 232,530 14,656 217,874
Repay Loan from County Housing
Revolving Loan Fund 502,224 - - 502,224 - 502,224
Reimbursement to County for
Portion of 2009 Bonds 626,712 - 21,383 605,329 22,222 583,107
2009 Bond Premiums 3,305 - 165 3,140 165 2,975
2009 Bond Issuance Costs (3,055) - (152) (2,903) (153) (2,750)
Foxxtown Apartments
Reimbursement to County for
Portion of 2006 Bonds 361,286 - 14,878 346,408 15,566 330,842
Reimbursement to County for
Portion of 2009 Bonds 245,932 - 8,391 237,541 8,720 228,821
2009 Bond Premiums 1,297 - 65 1,232 65 1,167
2009 Bond Issuance Costs (1,199) - (60) (1,139) (60) (1,079)
Other Post-Employment Benefit Obligation 291,066 118,504 64,498 345,072 - 345,072
Subtotal 2,928,329 118,504 163,993 2,882,840 1 02,089 2,780,751
Total Noncurrent Liabilites: Component Units $ 13,811,757 $ 5,978,929 $ 442,000 $ 19,348,686 $ 5 94,191 $ 18,754,495
- 85 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION, AND
COMPENSATED ABSENCES
PRIMARY GOVERNMENT
All general obligation bonds are valid and legally binding general obligations of Queen Anne’s County and
constitutes an irrevocable pledge of its full faith and credit and unlimited taxing power. Governmental bonds are
payable from ad valorem taxes, unlimited as to rate or amount on all real, tangible, personal, and certain
intangible property subject to taxation at full rate for local purposes in the County.
Business-type bonds, while representing general obligations of the County government, are to be paid from
income earned by the related enterprise fund. Enterprise funds that have such debt are: Water, Sewer, Bay
Bridge Airport, Blue Heron Golf Course, Public Landings, and Public Marinas.
During fiscal year 2009, the County implemented the provisions of Governmental Accounting Standards Board
(GASB) Statement 43, Financial Reporting for Post-Employment Benefit Plans Other than Pension Plans and
GASB 45, Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than
Pensions. For governmental funds, the other post-employment benefit obligations are reported in the
government-wide statements in the function in which that employee usually charges their productive time. For
enterprise funds, these obligations are reported in the enterprise fund in which that employee charges the
majority of their productive time. Additional information can be found in Note 14, Other Post-Employment
Benefits.
Compensated absences that mature during the fiscal year, in that they are paid when the employee takes
vacation leave upon the employee’s termination, are typically liquidated from the governmental or enterprise
fund in which that employee charges the majority of their productive time. They are paid as regular wages.
Compensated absences that do not mature during the fiscal year are accrued at year-end as an adjustment to
liability for compensated absences. For governmental funds, these adjustments are reported in the
government-wide statements in the function in which that employee usually charges their productive time. For
enterprise funds, these adjustments are reported in the enterprise fund in which that employee charges the
majority of their productive time. In the case of grant-funded activities that disallow compensated absences as
an eligible cost, they are paid as administrative wages in the same Fund. Compensated absences in
governmental funds are primarily charged to the General Fund or Special Revenue Funds; they are usually not
charged to Capital Projects Funds.
- 86 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION, AND
COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
As of June 30, 2011, general obligation bonds and notes payable for governmental activities are comprised of
the following, along with other post-employment benefits and accrued compensated absences:
Year Amount Outstanding Due in
Paying Interest Series of Original June 30, Due Within More than
Governmental Activities Fund Rate Matures Issue 2011 One Year One Year
General Obligation Bonds Payable
2002 Refunding Bonds General 3.00%-5.00% 2013 6,310,000 $ 1,950,000 $ 920,000 $ 1,030,000
2003 Public Facilities General 3.50%-4.50% 2023 13,265,000 9 ,207,471 580,344 8,627,127
2005 Refunding Bonds General 3.00%-5.00% 2019 30,026,336 2 4,446,336 3,080,000 21,366,336
2006 Public Facilities General 4.000%-5.375% 2027 22,510,212 1 9,507,559 876,581 18,630,978
2009 Public Facilities General 1.400%-5.625% 2030 28,499,154 2 6,925,922 983,110 25,942,812
2011 Public Facilities General 2.00%-4.25% 2031 21,532,570 2 1,532,570 669,924 20,862,646
Subtotal Bonds Payable 1 03,569,858 7,109,959 96,459,899
Notes Payable
2009 CELP Loan General 2.00% 2015 122,780 8 0,880 17,353 63,527
State of Maryland - Price Ck. Spec. Rev. 0.00% 2021 625,000 2 40,000 24,000 216,000
State of Maryland - Grove Ck. Spec. Rev. 0.00% 2034 510,617 4 69,767 20,425 449,342
Frizz-King Property General Capital Projects 6.00% 2014 365,000 2 79,985 119,714 160,271
Subtotal Notes Payable 1 ,070,632 1 81,492 8 89,140
Subtotal Bonds and Notes Payable 1 04,640,490 7,291,451 97,349,039
2005 Bond Premiums 6 11,517 76,391 535,126
2005 Bond Issuance Costs (89,637) (11,668) (77,969)
2005 Deferred Refunding Costs (1,319,476) (170,483) (1,148,993)
2006 Bond Premiums 1 92,360 12,023 180,337
2006 Bond Issuance Costs (192,360) (12,023) (180,337)
2009 Bond Premiums 1 39,684 7,352 132,332
2009 Bond Issuance Costs (129,231) (6,797) (122,434)
2011 Bond Premiums 1 32,510 6,626 125,884
2011 Bond Issuance Costs (123,496) (6,175) (117,321)
Total Governmental Activities 1 03,862,361 7,186,697 96,675,664
Long-term Obligation under
Capital Lease Agreements General 4.38% 2012 248,460 5 4,089 54,089 -
Other Post-Employment Benefit Obligation 1 3,884,281 - 13,884,281
Compensated Absences 2 ,162,071 1,379,933 782,138
$ 1 19,962,802 $ 8,620,719 $ 111,342,083
Details relating to the capital lease obligation can be found in Note 9, Section D – Capital Lease Obligations.
- 87 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION, AND
COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize general obligation bonds and notes payable outstanding as of
June 30, 2011 for governmental activities are as follows:
Governmental Activities
Year Ending Governmental Bonds Payable Governmental Notes Payable
June 30, Principal Interest Total Principal Interest Total
2012 $ 7,109,959 $ 4,219,182 $ 11,329,141 $ 181,492 $ 15,670 $ 197,162
2013 6,955,964 3,946,104 10,902,068 189,187 7,975 197,162
2014 7,265,781 3,696,364 10,962,145 95,695 1,325 97,020
2015 7,010,750 3,438,303 10,449,053 62,844 464 63,308
2016 6,720,445 3,186,643 9,907,088 53,772 93 53,865
2017-2021 29,567,441 11,995,985 41,563,426 222,125 - 222,125
2022-2026 22,764,799 6,589,302 29,354,101 102,125 - 102,125
2027-2031 16,174,719 1,823,481 17,998,200 102,125 - 102,125
2032-2034 - - - 61,267 - 61,267
$ 103,569,858 $ 38,895,364 $ 142,465,222 $ 1,070,632 $ 25,527 $ 1,096,159
These repayment schedules exclude bond premiums ($1,076,071), issuance costs (negative $534,724), and
deferred refunding costs (negative $1,319,476).
For the year ended June 30, 2011, total principal, debt issuance costs, and interest incurred by governmental
funds relating to general obligation bonds and notes payable, less College reimbursements, were $6,964,558,
$129,671, and $3,629,426, respectively.
A portion of the County’s 2009 Bond offering was issued using Build America Bonds. As an incentive to use
these bonds, the Federal government offered an interest reimbursement grant, which offsets the County’s debt
service for interest expense. As a result, the County received interest reimbursements of $454,166 during fiscal
year 2011, 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 $ 1,241,218 $ (434,386) $ 806,832
Business-Type Activities
Airport 8,271 (2,894) 5,377
Public Landings 1 ,842 (645) 1,197
Public Marinas 4 6,404 (16,241) 30,163
Total Business-Type Activities 5 6,517 (19,780) 36,737
Total $ 1 ,297,735 $ (454,166) $ 843,569
- 88 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION, AND
COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
General obligation bonds and notes payable outstanding as of June 30, 2011 for business-type activities are
comprised of the following, as well as other post-employment benefits and accrued compensated absences:
Year Amount Outstanding Due in
Interest Series of Original June 30, Due Within More than
Business -Type Activities Rate Matures Issue 2011 One Year One Year
Golf Course
2005 Refunding Bonds 3.00%-5.00% 2019 $ 1,076,075 $ 766,075 $ 80,000 $ 686,075
2005 Bond Premiums 27,370 3,041 24,329
2005 Bond Issuance Costs (3,507) (390) (3,117)
2005 Deferred Refunding Costs (52,994) (5,888) (47,106)
Subtotal Golf Course 736,944 76,763 660,181
Bay Bridge Airport
2005 Refunding Bonds 3.00%-5.00% 2019 337,588 217,588 25,000 192,588
2006 Public Facilities Bonds 4.000%-5.375% 2027 288,928 250,388 11,251 239,137
2009 Public Facilities Bonds 1.400%-5.625% 2030 180,501 174,336 6,394 167,942
2011 Public Facilities Bonds 2.00%-4.25% 2031 2,430 2,430 76 2,354
2005 Bond Premiums 8,587 954 7,633
2005 Bond Issuance Costs (1,100) (122) (978)
2005 Deferred Refunding Costs (16,626) (1,847) (14,779)
2006 Bond Premiums 2,469 154 2,315
2006 Bond Issuance Costs (2,469) (154) (2,315)
2009 Bond Premiums 904 48 856
2009 Bond Issuance Costs (836) (44) (792)
2011 Bond Premiums 18 1 17
2011 Bond Issuance Costs (16) (1) (15)
Subtotal Airport 635,673 41,710 593,963
Public Landings
2009 Public Facilities Bonds 1.400%-5.625% 2030 29,936 39,776 1,624 38,152
2009 Bond Premiums 205 11 194
2009 Bond Issuance Costs (190) (10) (180)
Subtotal Public Landings 39,791 1,625 38,166
Public Marinas
2006 Public Facilities Bonds 4.000%-5.375% 2027 41,132 35,645 1,602 34,043
2009 Public Facilities Bonds 1.400%-5.625% 2030 918,040 892,095 37,931 854,164
State of Maryland - Shore Erosion Loan 0% 2015 102,208 6,814 6,814 -
2006 Bond Premiums 352 22 330
2006 Bond Issuance Costs (352) (22) (330)
2009 Bond Premiums 4,599 242 4,357
2009 Bond Issuance Costs (4,252) (224) (4,028)
Subtotal Marinas 934,901 46,365 888,536
Sanitary District
2002 Refunding Bonds 3.00%-5.00% 2013 3,385,000 1,145,000 500,000 645,000
Maryland Water Quality-Cloverfields 5.09% 2013 4,282,209 428,221 214,110 214,111
Maryland Water Quality-Digester 4.41% 2013 1,121,377 186,277 91,116 95,161
Maryland Water Quality-Bay City 3.50% 2015 3,476,961 972,685 230,771 741,914
Maryland Water Quality-2005 Enhancement 1.00% 2027 18,252,291 14,871,723 862,592 14,009,131
Queenstown Bank-Cloverfields Hookup 8.13% 2015 435,000 142,435 33,592 108,843
Queenstown Bank-Bay City Hookup 7.90% 2015 205,000 84,016 14,239 69,777
Subtotal Debt 17,830,357 1,946,420 1 5,883,937
Prior Issue Deferred Refunding Costs (26,667) (13,333) (13,334)
Subtotal Sanitary District 17,803,690 1,933,087 15,870,603
Total Enterprise Debt before
Other Post-Employment Benefit Obligation and Compensated Absences 20,150,999 2,099,550 18,051,449
Other Post-Employment Benefit Obligation 2,647,180 - 2,647,180
Accrued Compensated Absences 339,762 216,852 122,910
Total Enterprise Funds $ 23,137,941 $ 2,316,402 $ 2 0,821,539
- 89 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
B. GENERAL OBLIGATION BONDS, NOTES, OTHER POST-EMPLOYMENT BENEFIT OBLIGATION, AND
COMPENSATED ABSENCES (CONTINUED)
PRIMARY GOVERNMENT (CONTINUED)
The annual requirements to amortize business-type bonds and notes outstanding at June 30, 2011, are as
follows:
Business-Type Activities
Year Ending Business-Type Bonds Payable Business-Type Notes Payable
June 30, Principal Interest Total Principal Interest Total
2012 $ 663,877 $ 143,276 $ 807,153 $ 1,453,235 $ 297,422 $ 1,750,657
2013 475,364 118,034 593,398 1,471,183 267,198 1,738,381
2014 492,721 96,971 589,692 1,183,289 219,140 1,402,429
2015 170,007 82,479 252,486 1,195,544 197,010 1,392,554
2016 172,367 75,972 248,339 917,106 163,082 1,080,188
2017-2021 798,659 271,174 1,069,833 4,624,715 674,021 5,298,736
2022-2026 424,582 145,486 570,068 4,860,431 438,121 5,298,552
2027-2031 325,756 35,661 361,417 986,668 58,267 1,044,935
$ 3,523,333 $ 969,053 $ 4,492,386 $ 16,692,171 $ 2,314,261 $ 19,006,432
For the year ended June 30, 2011, total principal and interest of $2,104,818 and $463,510, respectively, was
incurred by business-type activities relating to bonds and notes payable.
- 90 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
C. ISSUANCE OF NEW DEBT
PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES
On March 16, 2011, Queen Anne’s County issued Public Facilities Bonds of 2011 for $21,535,000
($21,532,570 for Governmental Activities and $2,430 for Business-Type Activities). These General
Obligations Bonds carry interest rates of 2.000 to 4.250 percent and mature serially through 2031. The
primary use of the bond proceeds is to provide funding for construction and renovation of public school
facilities, with minor amounts earmarked for construction of general government and enterprise capital
projects. Moody’s Investors Service has assigned the rating of Aa2 and Fitch Ratings has assigned a rating
of AA+ to the Queen Anne’s County 2011 Bonds.
In July 2010, the County entered into a promissory note with Frizz-King Enterprises, LLC in order to purchase
development rights as part of the Agricultural Transfer Program. The terms of the agreement specify a total
purchase price of $1,387,000, of which Queen Anne’s County will contribute $572,000 and the federal Natural
Resource Conservation Service (NRCS) will cover the balance of $815,000 for the rights on the 267.383 acre
Frizz-King property. At the settlement in July 2010, the County paid $207,000 and signed a promissory note for
the balance of $365,000, plus 6% interest. Terms of the note require $33,463 to be paid quarterly beginning in
October 2010 and ending in July 2013. The purchase did not result in an asset as the Eastern Shore
Conservancy, Inc. will own the entire easement right.
D. LEASE OBLIGATIONS
CAPITAL LEASE - PRIMARY GOVERNMENT
Queen Anne’s County entered into a capital lease agreement for two roll-off trucks for the Solid Waste
Department. This lease agreement qualifies as a capital lease and has been recorded at the present value
of future minimum lease payments at the inception of the lease. The lease is a five year note and expires in
January 2012.
As of June 30, 2011, the assets acquired and placed in service, net of depreciation, are as follows:
Vehicles $ 2 48,460
Less accumulated depreciation (113,877)
Total asset value for capital lease $ 1 34,583
The future minimum lease obligations and the net present value of the minimum lease payments as of June
30, 2011, are as follows:
Fiscal Year Ending lease
June 30, payments
2012 $ 5 5,872
Less amount representing interest (1,783)
Net present value of
minimum lease payments $ 5 4,089
- 91 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 9 – NONCURRENT LIABILITIES (CONTINUED)
D. LEASE OBLIGATIONS (CONTINUED)
OPERATING LEASE - PRIMARY GOVERNMENT
In October 2009, Queen Anne’s County entered into an operating lease agreement as lessor for ground
space at the Bay Bridge Airport. The Airport leased a parcel of land approximately 9,000 square feet to CSP
Properties, LLC beginning in November 2009 for a term of twenty-five years, ending in fiscal year 2035.
Included in the lease agreement is the requirement that the lessee, CSP Properties, LLC, 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, 2011 amounted to $5,310. Future lease revenues are as
follows:
Fiscal Year Ending lease
June 30, payments
2012 $ 5,310
2013 5,381
2014 5,416
2015 5,416
2016 5,488
2017-2021 27,918
2022-2026 28,893
2027-2031 29,824
2032-2035 20,453
Minimum Future Rental Revenue $ 134,099
E. LOCAL DEBT POLICY
PRIMARY GOVERNMENT
In August 2009, Queen Anne’s County adopted Resolution No. 09-13, establishing a local debt policy in
compliance with Article 95, Section 22F of the Annotated Code of Maryland. This policy requires that the
County’s Director of Budget and Finance: (1) prepare a five-year capital project plan each year; (2) propose an
amount to be transferred from the General Fund operating balances to the General Capital Projects Fund to
serve as pay-as-you-go funding in the latter Fund, in order to lessen the need for future County debt; (3) limit
the County’s non-bonded indebtedness to $8.0 million for general operating expenses or capital improvements;
(4) certify that the sum of outstanding general bonded debt and any new general obligation debt is 2.5% or less
of the total taxable assessable base and is $3,000 or less per capita; and (5) review and revise this Debt Policy
as necessary no later than September 1, 2012.
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,
page 200.
- 92 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
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, 2011 are as follows:
Sanitary District
Business -Type Activities Restricted Debt Service Total
Current Restricted Assets
Equity in Pooled Cash $ 7,131,635 $ 3,658,194 $ 10,789,829
Accounts Receivable (Net) 9,860 37,718 47,578
Subtotal 7,141,495 3,695,912 10,837,407
LESS Current Liabilities Associated with Restricted Assets
Current Portion of Bonds Payable from Restricted Assets - (54,371) (54,371)
Net Current Restricted Assets 7,141,495 3,641,541 10,783,036
Noncurrent Restricted Assets
Special Assessments Receivable (Net) 1,199,203 1,571,408 2,770,611
LESS Noncurrent Liabilities Payable from Noncurrent Restricted Assets
Unearned Revenue ( 1,199,203) ( 1,462,309) (2,661,512)
Net Noncurrent Restricted Assets - 109,099 109,099
Net Restricted Assets $ 7,141,495 $ 3,750,640 $ 10,892,135
- 93 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 10 – RESTRICTED ASSETS AND LIABILITIES AND FUND BALANCES (CONTINUED)
B. RESTRICTED NET ASSETS
PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES
Net Assets Invested in Capital Assets, Net of Related Debt, for governmental activities, is calculated as follows:
Governmental Activities
Total Debt excluding Compensated Absences and OPEB Obligation $ (103,916,450)
Add back: Debt relating to Board of Education Assets $ 60,933,189
Add back: Unspent portion of Bond Proceeds for Board of Education debt 11,503,858
Add back: Unspent portion of Bond Proceeds for Governmental debt 5 ,168,212
Add back: Debt relating to non-capital assets (Dredging) 709,766
Add back debt unrelated to Capital Assets 78,315,025
Net Assets Invested in Capital Assets 143,875,958
Total Capital Assets, net of related debt $ 118,274,533
BUSINESS-TYPE ACTIVITIES
Net Assets Invested in Capital Assets, Net of Related Debt; Restricted; and Unrestricted Net Assets, for
business-type activities, are as follows:
Sanitary District Non-Major Total
Sewer Water Restricted Debt Service Total Bay Bridge Enterprise Enterprise
Business-Type Activities Operating Operating Fund Fund Sanitary Airport Funds Funds
Capital Assets, net of Accumulated Depreciation $ 58,827,296 $ 1 5,828,968 $ - $ - $ 74,656,264 $ 14,551,312 $ 8,779,493 $ 97,987,069
Less: Debt excluding Compensated Absences
and OPEB Obligation ( 16,524,298) (1,046,401) - - (17,570,699) ( 635,673) (1,711,636) ( 19,918,008)
Invested in Capital Assets, Net of Related Debt 42,302,998 1 4,782,567 - - 57,085,565 13,915,639 7 ,067,857 78,069,061
Restricted Net Assets
Debt Service - - - 3,288,128 3,288,128 - 444 3,288,572
Capital Projects - - 753,300 - 753,300 - - 753,300
Total Restricted Net Assets - - 753,300 3,288,128 4,041,428 - 444 4,041,872
Total Unrestricted Net Assets 4,420,675 2 ,495,554 6,388,195 - 13,304,424 ( 389,429) (134,962) 12,780,033
Total Net Assets $ 46,723,673 $ 1 7,278,121 $ 7,141,495 $ 3,288,128 $ 74,431,417 $ 13,526,210 $ 6,933,339 $ 94,890,966
Sanitary District debt, excluding compensated absences and OPEB obligation of $17,570,699 above, also
excludes $232,991 from the Debt Service Fund, as there are no capital assets related to that debt.
Unrestricted Net Assets total $12,780,033 above for business-type activities. However, these assets
become restricted when included in the Government-Wide Financial Statements found on pages 36 to 37.
The Sanitary District’s Unrestricted Net Assets found in the Restricted Fund of $6,388,195 are restricted in
that these resources can only be used for capital purchases or debt payments; hence, they are reported in
the Restricted Fund. However, the remaining unrestricted net assets noted in the other business-type funds
total $6,391,838 and are restricted when reported in the Government-Wide Financial Statements because
they may be used for business-type operations but not for governmental operations.
- 94 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 10 – RESTRICTED ASSETS AND LIABILITIES AND FUND BALANCES (CONTINUED)
C. FUND BALANCES
PRIMARY GOVERNMENT
Governmental fund balances are composed of the following:
School Total
General General Roads Impact Fees Roads Non-Major Governmental
Governmental Funds Fund Capital Capital Capital Board Governmental Funds
Nonspendable
Inventory $ 4,000 $ - $ - $ - $ 561,391 $ - $ 565,391
Loans Receivable - - - - - 3,840,092 3,840,092
Subtotal Nonspendable 4,000 - - - 561,391 3 ,840,092 4,405,483
Restricted
Donor-Specified Purposes 2,525 - - - - 4 ,072 6,597
Mosquito Control - - - - 167,827 - 167,827
Unspent Bond Proceeds - 16,672,070 - - - - 16,672,070
Impact Fees - 248,663 - 416,209 - 3 35,570 1,000,442
Other 331,273 - - - - 4,221,305 4,552,578
Subtotal Restricted 333,798 16,920,733 - 416,209 167,827 4 ,560,947 22,399,514
Committed
Encumbrances 14,660 - - - - - 14,660
Developer Exactions - 76,741 777,909 - - - 854,650
Other 642,408 966,168 - - - - 1,608,576
Subtotal Committed 657,068 1,042,909 777,909 - - - 2,477,886
Assigned
Capital Projects - 5,807,147 675,262 - - - 6,482,409
Encumbrances - 3,082,962 2,608,087 - - - 5,691,049
Subsequent Years' Expenditures 70,000 1,500,000 - - - - 1,570,000
Other - - - - 869,351 2 02,406 1,071,757
Subtotal Assigned 70,000 10,390,109 3,283,349 - 869,351 2 02,406 14,815,215
Unassigned
General Fund 4,753,656 - - - - - 4,753,656
Other - - - - - (172,381) (172,381)
Subtotal Unassigned 4,753,656 - - - - (172,381) 4,581,275
Total Governmental Funds Balances $ 5,818,522 $ 28,353,751 $ 4,061,258 $ 416,209 $ 1,598,569 $ 8 ,431,064 $ 48,679,373
- 95 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
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 2011 and, as
of the date of this report, it is believed that there are no outstanding claims in excess of the equity of the
trust.
Settlements - For the last three years, settlements have not exceeded insurance coverage for any type of
policy in effect.
- 96 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 12 - RETIREMENT PLANS
Virtually all full and eligible part-time employees of Queen Anne's County, Maryland, and its related agencies
including the Housing Authority, are covered by one of the statewide contributory pension systems of the
State of Maryland.
PRIMARY GOVERNMENT AND PUBLIC HOUSING AUTHORITY
COST-SHARING MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLANS
Description of Plans
The County participates in the following cost-sharing multiple-employer pension plans that are administered
by the State of Maryland.
The Employees Pension System of the State of Maryland (Pension System) was established January 1,
1980. The Pension System covers employees hired after December 31, 1979, as well as Retirement
System participants who have voluntarily joined the Pension System.
The Employees Contributory Pension System of the State of Maryland (Contributory Pension System) was
established July 1, 1998. As of July 1, 1999, and retroactively to July 1, 1998, the County elected to
participate in the Contributory Pension System for all service earned on or after July 1, 1998.
Effective the first payroll in fiscal year 2007, the County elected to provide its employees with the “Alternate
Contributory Pension Selection Plan of the State of Maryland” (Alternate Contributory Pension System), under
Title 23 of the State Pension Article. This plan is an enhanced version of the two pension systems described
above, and, as such, includes provisions that originate in those plans. Eligible employees not covered by
LEOPS, which is described below, are required to participate in this alternate plan in lieu of other plans
previously offered. At this time, all current employees not covered by LEOPS participate in the Alternate
Contributory Pension System.
The Law Enforcement Officers Pension System (LEOPS) was established July 2, 1990 and adopted by the
County on July 1, 2004. LEOPS currently covers uniformed law enforcement officers of the Sheriff’s
Department.
Under the terms of the Alternate Contributory Pension System, a member may retire after 30 years of
service regardless of age; at age 65 with two years of service; at age 64 with three years of service; at age
63 with four years of service; or at age 62 with at least five years of service. An employee may also take
early retirement with reduced benefits at age 55 with 15 years of service. A member terminating
employment before attaining retirement age, but after completing five years of eligible service, becomes
eligible for a vested pension allowance upon reaching age 62.
Under the terms of the LEOPS, a member may retire with full benefits upon attaining age 50 or after
completing 25 years of eligible service regardless of age. LEOPS members are not eligible for early service
retirement allowances. A member terminating employment before attaining retirement age, but after
completing five years of eligible service, becomes eligible for a vested pension allowance upon reaching age
50.
- 97 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 12 - RETIREMENT PLANS (CONTINUED)
PRIMARY GOVERNMENT AND PUBLIC HOUSING AUTHORITY (CONTINUED)
On retirement from service, a member of any of these plans shall receive an annual service retirement
allowance based on the member's average final compensation (based on the highest three years’ wages)
and years of creditable service multiplied by a factor. This factor varies from 1.2% to 1.8% for the Alternate
Plan or 2.0% for LEOPS. The factor is applied per eligible service year, depending on employee/employer
contributions and other plan-specific provisions. Early retirement, where available, is subject to provisions
that reduce the benefit received.
Benefits under these plans are established under the State Personnel and Pensions Article of the Annotated
Code of Maryland.
The State Retirement and Pension System of Maryland issues a comprehensive annual financial report that
includes disclosures regarding: actuarial value of assets; total actuarial accrued liability; unfunded actuarial
accrued liability, if any; and funded liability ratio. This report can be obtained from the agency’s office as
follows:
State Retirement and Pension System of Maryland
120 E. Baltimore St, Suite 1601
Baltimore, Maryland 21202-1600
Funding Policy
Obligations to contribute to the plans are established under the Annotated Code of Maryland. Employees who
are members of these two plans contribute a percentage of their gross employee compensation. Members of
the Alternate Contributory Pension System contribute 5 percent and LEOPS members contribute 4 percent.
Required contributions under the plans, which are not funded by employee contributions, are funded entirely by
the County. Contributions by the County to both State plans take place during the fiscal year and are based
upon salaries for the preceding fiscal year. The County contribution for the year ending June 30, 2011 is based
on salaries for the year ending June 30, 2010. The contribution requirements of plan members of the reporting
entity are established and may be amended by the Maryland State Pension System Board of Trustees. The
County’s contributions for the fiscal years ending June 30th were equal to the actuarially determined amounts as
follows:
Fiscal Year Ending
Retirement Plan Contributions June 30, 2011 June 30, 2010 June 30, 2009
Total Payroll $ 28,037,262 $ 27,860,546 $ 27,725,213
Covered Payroll
Pension System 20,585,096 21,932,213 2 1,756,765
LEOPS 2 ,642,996 2,743,928 2,646,509
Expenditure/Expense
Pension System 2,415,867 1,633,860 1,540,473
LEOPS 7 34,768 6 52,045 4 90,008
- 98 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 12 - RETIREMENT PLANS (CONTINUED)
OTHER COMPONENT UNITS
Queen Anne’s County Board Of Education
The employees of the Board of Education (other than part-time employees not eligible for participation in the
plans) are covered by one of four defined-benefit retirement plans that are administered by the State
Retirement and Pension System of Maryland. The Board’s share of contributions for teachers and
administration employees is primarily the responsibility of the State. In fiscal year 2011, State contributions
on behalf of the Board are approximately $6,590,974. This contribution is recognized as both revenue and
expenditure for the Board. An additional $919,174 is contributed by the Board of Education for other
covered employees.
Detailed information concerning the Queen Anne's County Board Of Education retirement plan is presented in
their June 30, 2011 financial statements, which are publicly available.
Queen Anne’s County Free Library
The employees of the Library (other than part-time employees not eligible for participation in the plans) are
covered under one of four defined-benefit retirement plans that are administered by the State Retirement
and Pension System of Maryland. The Library’s share of contributions for employees is primarily the
responsibility of the State. In fiscal year 2011, State contributions on behalf of the Library are approximately
$112,894. These contributions are recognized as both revenue and expenditures for the Library. An
additional $40,702 is contributed by the Library for other covered employees.
Detailed information concerning the Queen Anne's County Free Library retirement plan is presented in their
June 30, 2011 financial statements, which are publicly available.
NOTE 13 - DEFERRED COMPENSATION PLAN
The County offers its employees a deferred compensation plan created in accordance with Internal Revenue
Code Section 457. The Plan, available to all County employees, permits them to defer a portion of their
salary until future years. Participation in the plan is optional. The deferred compensation is not available to
employees until termination, retirement, death or unforeseeable emergency.
All amounts of compensation deferred under the plan; all property and rights purchased with those amounts;
and all income attributable to those amounts, property or rights are solely the property and rights of the
participants. The County has no liability for losses under the plan.
Investments are managed by the plan’s administrator based on several different investment options, or
combinations thereof. The choice of the investment option(s) to be used is made by each participant. The
County has no management control over the assets of the plan. Accordingly, per GASB Statement No. 32,
the assets of the plan are not included in these financial statements.
- 99 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS
Other Post-Employment Benefit Trust (OPEB Trust)
On June 23, 2009, the County enacted County Ordinance No. 09-12, which establishes a Trust entity entitled
“Other Post-Employment Benefit Trust – County Commissioners of Queen Anne’s County, County
Commissioners of Kent County, and Participating Agencies” (OPEB Trust). The purpose of the OPEB Trust
is to: (1) fund costs of health insurance and other post-employment benefits to eligible retirees of the primary
government (including the Queen Anne’s County Public Housing Authority), the Queen Anne’s County
Board of Education, and the Queen Anne’s County Free Library; (2) accumulate and invest financial
resources for this purpose; (3) provide health insurance and other post-employment benefits for eligible
retirees; and (4) provide related administrative services.
Other agencies and political subdivisions have the right to participate in this Trust now and in the future.
Such unrelated entities may deposit funds with the Trust for investment purposes related to their OPEB
plans. At June 30, 2011, funds in the amount of $155,731 were reported as a liability of the Trust to Kent
County, Maryland. Kent County is holding these assets for the benefit of their plan participants.
OPEB Trustees have exclusive authority to manage the assets of the Trust. The Board of Trustees consists
of five members: two representing Queen Anne’s County Government; two representing the Queen Anne’s
County Board of Education; and one representing Kent County. In lieu of separate financial statements for
the OPEB Trust, Queen Anne’s County presents the Trust entity’s complete financial statements within this
document.
Plan Description
The County’s Other Post-Employment Benefit Plan (OPEB Plan) is an agent multiple-employer defined
benefit healthcare plan that covers retired employees of the primary government, the Queen Anne’s County
Board of Education, and the Queen Anne’s County Free Library. The Plan was established as specified in
County Ordinance No. 09-12.
Plan descriptions and actuarial assumptions for each participant are described: (1) as follows below for the
primary government and (2) in financial statements issued separately for all other participants, which are
component units of the primary government. Addresses for other participants are noted below in this Note.
- 100 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Plan Description (Continued)
Primary Government
The County’s post-employment plan provides medical insurance benefits to retirees and their eligible
dependents. Depending on the years of County service, the retiree is eligible for a subsidy provided by the
County for a specific portion of the cost of the health insurance. The following table describes the primary
government’s health insurance post-employment benefit plan in effect for employees who retire on or after
September 2, 2011. For employees who retired prior to September 2, 2011, the plan remains the same,
except that the percentages for PPO health plans are the same as shown below for the EPO plans.
Years of County Service Prior to Retirement and eligible
Subsidy Level Description
retiree hired prior to July 1, 2010
Retiree retired with 15 years of County service Retiree and eligible dependents shall be entitled to receive fifty-four
percent (54%) of selected County health insurance premium costs.
Retiree retired with 16 years of County service but less than 25 Retiree and eligible dependents shall be entitled to receive three and
years of County Service one tenths percent (3.1%) for the PPO or three and six tenths percent
(3.6%) for the EPO of selected County health insurance premium costs
for every full year of County service.
Retiree with 25 years or more of County Service or a person in Retiree and eligible dependents shall be entitled to receive eighty-five
receipt of a special death benefit under the Maryland State percent (85%) of selected County health insurance premium costs for
Retirement/Pension System the PPO health plan and ninety percent (90%) for the EPO health plan.
Retiree retired with less than 15 years of County service Retiree and eligible dependents shall be entitled to remain in the
County's health insurance plan if they pay the full rate to cover all
County health insurance premium costs.
All eligible retirees hired prior to July 1, 2010 Coverage may include the retiree, spouse and dependents. Coverage
does not cease upon death of the retiree.
Years of County Service Prior to Retirement and eligible
Subsidy Level Description
retiree hired on or after July 1, 2010
All eligible retirees hired or rehired on or after July 1, 2010 Retiree shall receive a health insurance subsidy based on the retiree's
years of service as outlined above but shall pay the full additional cost
for coverage of any eligible dependant.
Component Units
The other participating entities provide medical benefits to eligible employees who retire from employment
with each respective agency. Benefits and eligibility requirements vary among the different agencies. Each
agency pays a percentage of the health insurance premium based on certain criteria, including length of
service. In addition to medical benefits, the Board of Education pays the cost of providing term life insurance
for its retirees in varying amounts, depending upon length of service and date of retirement.
For detailed information on plan benefits provided by other participating agencies, as well as actuarial
assumptions used to estimate OPEB obligations, see the agencies’ separately-issued financial statements,
which can be obtained from their administrative offices as listed below:
Board of Education of Queen Anne’s County Queen Anne’s County
Queen Anne’s County Housing Authority Free Library
202 Chesterfield Avenue c/o Queen Anne’s County 121 S. Commerce Street
Centreville, Maryland 21617 Finance Office Centreville, MD 21617
107 N. Liberty Street
Centreville, Maryland 21617
- 101 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Plan Membership
Plan membership as of the date of the most recent actuarial valuation consisted of the following:
Plan Membership Active Retirees
County and
Housing Authority 477 72
Board of Education 890 247
Library 12 2
Total 1 ,379 321
Basis of Accounting and Financial Statements
The Plan’s financial information is prepared on the full accrual basis accounting. Expenses are recognized
as retirees’ insurance costs are incurred.
For further financial information, Summary and Combining financial statements may be found on pages 54 to
55 and 158 to 159, respectively. Required Supplementary Information may be found after these Notes, on
pages 112 to 113.
Contributions
Each participating agency has the authority to establish and amend benefit provisions that result in contribution
requirements of the plan members and the agency. The Plans are contributory plans in which the agencies and
their retired members and beneficiaries contribute certain amounts toward the current cost of the healthcare
benefits, based on an actuarial valuation. During fiscal year 2011, as shown in the table below, plan members
and beneficiaries receiving benefits contributed a total of $780,197 (26.3 percent of current contributions). In
addition, the primary government and its component units contributed a total of $2,188,722 (73.7 percent). This
amount consisted of $2,124,224 for current premiums, claims, and administrative expenses incurred on behalf
of current retirees; plus another $64,498 was contributed by the Housing Authority towards pre-funding of future
benefits during fiscal year 2011.
Total Retiree Employer
Contributions Retirees Employer Contributions Percentage Percentage
County $ 1 74,196 $ 8 31,222 $ 1,005,418 17.3% 82.7%
Housing Authority 3,364 69,068 72,432 4.6% 95.4%
Board of Education 595,319 1 ,276,130 1,871,449 31.8% 68.2%
Library 7,318 12,302 19,620 37.3% 62.7%
Total $ 7 80,197 $ 2,188,722 $ 2,968,919 26.3% 73.7%
- 102 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Contributions (Continued)
Net assets held in trust for above entities as of June 30, 2011 consisted of $609,353. This is a decrease of
$423,261 from the June 30, 2010 balance of $1,032,614. The decrease was a result of $489,495 relating to
Queen Anne’s County being withdrawn during the year in order to fund current post-employment benefits. Due
to the challenging financial situation the County faced in fiscal year 2011, the County developed two retirement
incentive plans for the year, which included termination pay, deferred compensation and other benefits payable
resulting from terminations of employee contracts. All of the retirement incentives were paid out during the 2011
fiscal year, with the exception of a benefit relating to health insurance, which was part of the first incentive plan
and offered to employees with a length of service of thirty years of more. For those employees, the health
insurance benefit stated they would receive health insurance at no cost for three years. After the three years
passed, the retirees will be treated the same as a regular County retiree. The County determined that health
and life insurance, incentive and termination pay and deferred compensation associated with the Retirement
Incentive Plans and contract terminations constitute post-employment benefits and a “Retirement Benefit Plan”
of the County within the meaning of the OPEB Trust Agreement and was eligible for funding from the Trust. The
County Commissioners determined that under the current economic conditions, funding these post-employment
benefits from the OPEB Trust was in the best interest of the County.
However, since the transaction detailed above, newly elected Commissioners took office and decided to
reinstate the OPEB funds that were withdrawn. The previously withdrawn funds of $489,495 were deposited
back into the Trust in October 2011.
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. The annual OPEB cost of $14,144,000, the amounts actually contributed to the trust of
$2,188,722, and the unfunded net OPEB obligation (NOO) of $32,232,126 for the year ended June 30, 2011
were as follows:
County and Total
Housing Board of for All
Funding Progress / Net OPEB Obligation Authority Education Library Employers
Beginning of the Year NOO $ 10,401,823 $ 9 ,535,459 $ 339,566 $ 20,276,848
Annual Required Contribution (ARC) 7 ,375,000 6,535,000 234,000 14,144,000
Employer Contributions (900,290) (1,276,130) (12,302) (2,188,722)
End of the Year NOO $ 16,876,533 $ 14,794,329 $ 561,264 $ 32,232,126
Percentage of ARC Contributed 12.21% 19.53% 5.26% 15.47%
The unfunded Net OPEB Obligation (NOO) of $16,876,533 at the end of the year for the County and Housing
Authority consisted of liabilities of $16,531,461 for the County ($13,884,281 for Governmental Activities and
$2,647,180 for Business Type Activities) and $345,072 for the Housing Authority.
Note that in fiscal year 2010, the Library based their calculations on the actuarial valuation for fiscal year 2011,
instead of the valuation for 2010. For fiscal year 2011, the Library adjusted the net assets at the beginning of
the year for the overstatement in the post-employment benefit obligations for fiscal year 2010. Those
adjustments are reflected in the figures above.
- 103 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Funding Status and Funding Progress
As of the most recent actuarial valuation date, the total actuarial accrued liability (AAL) for all plans, as shown
below, was $146,532,000. There was a total of $1,030,000 actuarial plan assets at that time; therefore the
unfunded actuarial accrued liability (UAAL) was $145,502,000. The annual covered payroll of all active
employees covered by the respective plans was $49,994,523 and the ratio of the unfunded actuarial accrued
liability to covered payroll was 291 percent for the Trust as a whole.
Value of Unfunded UAAL as a
Assets at Accrued Accrued Percentage
Valuation Valuation Liability Liability Funded Covered of Covered
Funding Progress Date Date (AAL) (UAAL) Ratio Payroll Payroll
County and
Housing Authority July 1, 2010 $ 5 00,000 $ 70,570,000 $ 70,070,000 0.71% $ 20,439,972 343%
Board of Education July 1, 2010 500,000 73,060,000 72,560,000 0.68% 28,329,494 256%
Library July 1, 2010 30,000 2,902,000 2,872,000 1.03% 1,225,057 234%
Total July 1, 2010 $ 1,030,000 $ 146,532,000 $ 145,502,000 0.70% $ 49,994,523 291%
The schedule of funding progress, presented as required supplementary information (RSI) on page 112
following the Notes, presents multiyear trend information that shows whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. This
relationship is represented by the funded ratio.
Annual OPEB Cost and Net OPEB Obligation
For fiscal year 2011, the annual required contribution (ARC), or annual OPEB cost, was based on actuarial
valuations as of July 1, 2010.
As noted in the table below, the total ARC for all plans was $14,144,000 for fiscal year 2011. Actual funding
was $2,188,722, or 15.47 percent of the ARC, resulting in an increase to the Net OPEB Obligation (NOO) of
$11,955,278 for the year.
Annual Increase in
Amortization of Required Net OPEB ARC
Actuarial Unfunded Actuarial Unfunded Normal Contribution ARC Obligation Percentage Based on
Accrued Liablility Accrued Liablility Cost (ARC) Funding (NOO) of ARC Interest
Net OPEB Obligation (1) (2) (3) (2)+(3) (4) (2)+(3)-(4) Contributed Rate
County and
Housing Authority $ 70,070,000 $ 2,956,000 $ 4,419,000 $ 7,375,000 $ 9 00,290 $ 6,474,710 12.21% 4.00%
Board of Education 72,560,000 3,041,000 3,494,000 6,535,000 1,276,130 5,258,870 19.53% 4.00%
Library 2 ,872,000 1 22,000 112,000 234,000 12,302 221,698 5.26% 4.00%
Total $ 145,502,000 $ 6,119,000 $ 8,025,000 $ 14,144,000 $ 2,188,722 $ 11,955,278 15.47%
The increase in net OPEB Obligation (NOO) for Queen Anne’s County and the Housing Authority, listed above
in the amount of $6,474,710, consists of $6,420,704 for the Queen Anne’s County portion and $54,006 for the
Housing Authority.
- 104 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 14 - OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Actuarial Methods and Assumptions
The actuarial valuations of the individual plans involve estimates of the value of reported amounts and
assumptions about the probability of events far into the future, such as future employment, mortality, and
healthcare costs. The actuarially determined amounts regarding the funded status of the plans and the
annual required contributions (ARC) of the County and other participating agencies are subject to continual
revision, as actual results are compared to past expectations and new estimates are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan (as understood by the
employer and plan members) and include the types of benefits provided at the time of valuation and the
historical pattern of sharing benefit costs between employers and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial
accrued liabilities and the actuarial value of the assets, consistent with the long-term perspective of the
calculations.
Actuarial assumptions used in the actuarial valuation for the County’s plan were:
Actuarial Assumptions for Primary Government
Actuarial valuation date July 1, 2010
Actuarial cost method Projected unit credit
Amortization method Closed
Amortization period 28 years (as of July 1, 2010)
Interest Assumptions 4.00% investment rate of return
Asset valuation method Market value of assets
Salary increases 3% per year
Mortality RP 2000, separate tables for males and
females
Actuarial trend assumptions Based on Society of Actuaries Long Term
Medical Trend and baseline assumptions -
Initial rate of 8% decreasing gradually. The
rate in 2050 is 5.9%.
- 105 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
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 $102,013 as
of June 30, 2011. This negative balance will clear itself as the balance of outstanding loans receivable in
Housing and Community Services Fund decreases.
Law Library Fund
The Law Library Fund has a negative unassigned fund balance of $1,593 as of June 30, 2011. However, the
fund balance was positive by August 2011.
Capital Projects – Fire Company Impact Fees Fund
The Capital Projects – Fire Company Impact Fees Fund has a negative unassigned fund balance of $68,775
as of June 30, 2011. 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 assets of $389,429 as of
June 30, 2011.
Parks and Recreation – Golf Course Enterprise Fund
The Golf Course Enterprise Fund has a deficit balance in unrestricted net assets of $297,050 as of
June 30, 2011.
Parks and Recreation – Property Management Enterprise Fund
The Property Management Enterprise Fund has a deficit balance in unrestricted net assets of $430,890 as of
June 30, 2011.
Note that during the fiscal year 2013 budget process, 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.
- 106 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
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, 2011 may be impaired. The County’s
management believes that there are no significant contingent liabilities that must be recorded relating to
compliance with the rules and regulations governing these programs.
Further, certain grants for capital projects, such as various park projects funded by the State, must be used
for the intended purpose of the grant. If, at any time during the useful lives of these projects, the facilities
cease to operate in their intended capacity, the County may be required to reimburse the granting agency
that portion of the grant or note that is equal to the percentage of useful life remaining. The County’s
Management believes that no such grant reimbursements will be needed.
In fiscal year 2010, the County’s Department of Housing and Community Services received a grant of
$350,000 from the Maryland Department of Housing and Community Development. This Maryland
Neighborhood Conservation Initiative (NCI) Grant provided funding to be used for the acquisition and
purchase of foreclosed properties for resale to qualifying homebuyers, as well as the issuance of zero
percent deferred payment loans to eligible critical service workers. Per the terms of the agreement, the
grantee may reuse funds for these same activities until June 30, 2013. Funds returned to the County from
program participants after June 30, 2013 must be returned to the state. Therefore, this grant has been
recorded as a pass-through grant, with the County contingently liable for the return of these funds to the
state at some point in time after June 30, 2013.
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 $1,042,909 million has been committed, including $692,234 for the
construction of a new County Courthouse, $273,934 for infrastructure improvements in the Matapeake
Business Park, and $76,741 for site improvements pursuant to agreements with local developers. In the
Roads Capital Projects Fund, $777,909 has been contributed by developers and is committed to fund
infrastructure improvements.
- 107 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
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 and is fully operational. It began accepting waste in January 2011. After the facility
in Caroline County reaches capacity, another landfill will be constructed in Queen Anne's County, with Kent
County to follow in turn. Each County is required to, and has, set aside sufficient land to construct a landfill
within their borders. The agreement expires when the last of the four landfills is closed.
Queen Anne’s County has a 31.04% financial interest in the Midshore Regional Landfill. In the event that
expenditures exceed revenues, the County is obligated to cover the deficiency in proportion to its financial
interest; however, to date additional funding from the County has not been required nor does management
anticipate it.
During fiscal year 2011, the landfill located in Talbot County, Midshore I, was closed. As of June 30, 2011, total
closure and post closure costs were estimated at approximately $9.6 million. Midshore II, located in Caroline
County, was 1.76% filled. Closure and post closure costs for Midshore II are estimated at approximately $13.9
million. Therefore, the total closure and post closure costs for both landfills are $23.5 million, with approximately
$7.3 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 $9.2 million as of June 30, 2011, 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 $20.3 million. As of
June 30, 2011, $6.3 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 $426,145 in tipping fees to the facility during fiscal 2011.
MES has satisfied its financial assurance requirements based upon the local government financial ratio tests of
the project participants as of June 30, 2010. MES expects to satisfy these requirements as of June 30, 2011
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.
- 108 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
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 $219 thousand in expenses, including
$20 thousand in fiscal year 2011, 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; 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 will include the application of
decontaminating chemicals to the soil in an effort to determine the dosage rate and the corresponding reduction
in pollutants that can be achieved. Upon plan approval by MDE, the County plans to award a contract for the
initial injection by March 2012, with work to begin in April 2012. The results of this initial injection will be
assessed, and a follow up plan for a final injection will be prepared. The contract duration for the final injection
will depend on the scope of work; however the County expects it to be completed by the end of fiscal year 2013.
No liability has been recorded at this time since costs for both the initial and final site injections cannot be
reliably estimated. None of these outlays met the requirements for capitalization noted in GASB Statement 49
and they were not capitalized.
- 109 -

QUEEN ANNE’S COUNTY, MARYLAND
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 19 – SUBSEQUENT EVENTS
Changes in Homestead Tax Credit:
To help homeowners deal with large assessment increases, Maryland statute has established the Homestead
Property Tax Credit, which limits the increase in taxable assessments each year to a fixed percentage. The
County, along with all other jurisdictions in Maryland, is required to limit taxable assessment increases to 10%
or less each year. This Credit applies only to the principal residence of the property owner; is based on the
dwelling and land associated with the dwelling; and is subject to certain conditions.
For the taxable year beginning July 1, 2012, the County increased the Homestead Property Tax Credit from 0%
to 5%, which means taxable increases on homeowner occupied properties is limited to 5% per year.
Changes in Property Tax Rate:
The County’s property tax rate is calculated per $100 of assessed value of real property, based on the full cash
value of that property. The County Commissioners adopt the property tax rate for the following fiscal year
during the annual budget process.
The property tax rates that were adopted for the last two fiscal years, as well as for the upcoming fiscal year, are
as follows:
Fiscal Years
Adopted Tax Rates 2012 2011 2010
County Property Tax Rate
per $100 of assessed value
of real property $ 0 .8471 $ 0 .7671 $ 0.770
Changes in Income Tax Rate:
In accordance with subsection 10-106 of the tax-general article of the annotated code of Maryland, the
County Commissioners may set, by resolution, a county income tax rate during the annual budget process.
For tax year 2011, the income tax rate was set at 2.85%. For all taxable years effective beginning January
1, 2012 and thereafter, the income tax rate for the County shall be 3.2%.
- 110 -

Required Supplementary Information
- 111 -

QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2011
OTHER POST-EMPLOYMENT BENEFITS TRUST
The following required supplementary information relates to 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.
Value of Unfunded UAAL as a
Assets at Accrued Accrued Percentage
Valuation Valuation Liability Liability Funded Covered of Covered
Funding Progress Date Date (AAL) (UAAL) Ratio Payroll Payroll
County and
Housing Authority July 1, 2008 $ - $ 49,107,000 $ 49,107,000 0.00% $ 23,690,163 207%
July 1, 2009 500,000 63,935,000 63,435,000 0.78% 23,778,696 267%
July 1, 2010 500,000 70,570,000 70,070,000 0.71% 20,439,972 343%
Board of Education July 1, 2008 - 62,759,000 62,759,000 0.00% 24,267,735 259%
July 1, 2009 500,000 67,450,000 66,950,000 0.74% 28,421,068 236%
July 1, 2010 500,000 73,060,000 72,560,000 0.68% 28,329,494 256%
Library July 1, 2008 - 2,010,000 2,010,000 0.00% 1,050,748 191%
July 1, 2009 30,000 2,614,000 2,584,000 1.15% 1,128,084 229%
July 1, 2010 30,000 2,902,000 2,872,000 1.03% 1,225,057 234%
Total July 1, 2008 - 113,876,000 113,876,000 0.00% 49,008,646 232%
July 1, 2009 1 ,030,000 133,999,000 132,969,000 0.77% 53,327,848 249%
July 1, 2010 $ 1,030,000 $ 146,532,000 $ 145,502,000 0.70% $ 49,994,523 291%
Analysis of the dollar amounts of plan net assets, actuarial accrued liability, and unfunded actuarial liability in
isolation can be misleading. Expressing the assets as a percentage of the actuarial accrued liability (Funded
Ratio) provides one indication of the system’s funding status on a going-concern basis. Analysis of this
percentage over time indicates whether the system is becoming financially stronger or weaker. Generally, the
greater this percentage, the stronger the system is becoming. In this fiscal year, the Funded Ratio is 0.70
percent, down from 0.77 percent the year before.
Trends in the unfunded actuarial accrued liability and annual covered payroll are both affected by inflation.
Expressing the unfunded accrued liability as a percentage of annual covered payroll approximately adjusts for
the effects of inflation and aids analysis of the system’s progress made in accumulating sufficient assets to pay
benefits when due. Generally, the smaller this percentage, the stronger the system is becoming. In this fiscal
year, the UAAL as a percentage of covered payroll is 291 percent, up from 249 percent the year before.
- 112 -

QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2011
OTHER POST-EMPLOYMENT BENEFITS TRUST (CONTINUED)
SCHEDULE OF PARTICIPATING AGENCIES’ CONTRIBUTIONS
The Schedule of Participating Agencies’ Contributions presents multiyear trend information that shows
whether the actual ARC contributed is increasing or decreasing over time relative to the annual required
contribution (ARC), as shown by the percentage of ARC contributed. Generally, the greater this
percentage, the stronger the system is becoming. In this fiscal year, the Percentage of ARC Contributed is
15.47 percent, up from 13.53 percent the year before.
Annual
Fiscal Required Percentage Net OPEB
Year Ended Contribution ARC of ARC Obligation
Percentage of ARC Contributed June 30 (ARC) Contributed Contributed (NOO)
County and
Housing Authority 2009 $ 5 ,312,000 $ 1 ,007,955 18.98% $ 4,304,045
2010 6,702,000 604,222 9.02% 6 ,097,778
2011 7,375,000 900,290 12.21% 6 ,474,710
1 9,389,000 2,512,467 12.96% 16,876,533
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
1 8,782,000 3,987,671 21.23% 14,794,329
Library 2009 178,000 38,234 21.48% 139,766
2010 212,000 12,200 5.75% 199,800
2011 234,000 12,302 5.26% 221,698
624,000 62,736 10.05% 561,264
Totals 2009 1 1,397,000 2,581,144 22.65% 8 ,815,856
2010 1 3,254,000 1,793,008 13.53% 11,460,992
2011 1 4,144,000 2,188,722 15.47% 11,955,278
$ 38,795,000 $ 6 ,562,874 16.92% $ 32,232,126
Note that the Net OPEB Obligation (NOO) of $16,876,533 at the end of the year for the County and Housing
Authority consisted of a total liability of $16,531,461 for the County and $345,072 for the Housing Authority.
Note also that in fiscal year 2010, the Library based their calculations on the actuarial valuation for fiscal year
2011, instead of the valuation for 2010. Therefore, the information presented for the Library in fiscal year 2010
was one year ahead of schedule. For fiscal year 2011, the Library adjusted the net assets at the beginning of
the year for the overstatement in the post-employment benefit obligations for fiscal year 2010. Those
adjustments are reflected in the figures above.
- 113 -

QUEEN ANNE’S COUNTY, MARYLAND
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2011
BUDGETARY COMPARISONS FOR GENERAL AND MAJOR SPECIAL REVENUE FUNDS
Required Supplementary Information provides budget-to-actual comparisons for the General Fund and those
major special revenue funds that adopt annual budgets.
Budget-to-actual variances are presented on the following pages for the General Fund and the Roads Board
Operating Fund, both of which adopt annual budgets.
For the General Fund, the Schedules provide summary budgetary information, followed by detailed information
reported separately by revenues and expenditures with budget variances.
For the Roads Board Operating Fund, the Schedules provide summary budgetary information.
For the School Impact Fees Capital Projects Fund, the budget-to-actual variances are presented in the Capital
Projects section of this report.
Budgets are adopted using the same method of accounting as that used for reporting purposes, i.e. according
to generally accepted accounting principles as used in the United States of America (GAAP).
- 114 -

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, 2011
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ 59,934,809 $ 59,934,809 $ 60,061,951 $ 1 27,142
Local Income Tax 32,980,024 32,980,024 29,527,496 (3,452,528)
Admission and Amusement Taxes 175,000 175,000 1 41,536 (33,464)
Recordation Taxes 2,650,000 2,650,000 2 ,426,641 (223,359)
Hotel Taxes 420,000 420,000 4 41,123 21,123
Licenses and Permits 767,165 767,165 9 19,663 152,498
Intergovernmental 1,409,576 2,102,332 1 ,933,743 (168,589)
Bond Interest Reimbursement - Build America Bond 425,278 425,278 4 38,022 12,744
Charges for Current Services 1,710,573 1,720,583 1 ,553,687 (166,896)
Fines and Forfeitures 32,250 32,250 3 6,244 3,994
Investment Income 227,181 227,181 5 0,109 (177,072)
Donations 10,300 30,925 3 5,335 4,410
Miscellaneous 55,958 631,396 5 10,843 (120,553)
Total Revenues 100,798,114 102,096,943 98,076,393 (4,020,550)
EXPENDITURES
Current
General Government 10,691,978 10,790,071 9 ,789,937 1 ,000,134
Public Safety 21,419,657 22,093,033 20,657,018 1 ,436,015
Public Works 3,559,023 3,602,414 2 ,938,771 663,643
Health 1,866,559 1,916,559 1 ,670,222 246,337
Social Services 284,859 295,144 2 84,865 10,279
Education 49,691,877 49,691,877 49,691,877 -
Parks 2,613,876 2,660,769 2 ,373,537 287,232
Library 1,423,851 1,433,851 1 ,433,725 126
Conservation of Natural Resources 591,121 591,121 5 31,968 59,153
Economic/Community Development 1,119,150 1,107,225 1 ,027,499 79,726
Miscellaneous 1,848,805 4,704,186 4 ,699,452 4,734
Reversions (610,000) (610,000) - (610,000)
Capital Outlay 545,980 511,757 2 38,195 273,562
Debt Service
Principal 7,595,213 8,170,213 6 ,835,118 1 ,335,095
Interest and Fiscal Charges 3,528,175 3,618,175 3 ,614,051 4,124
Total Expenditures 106,170,124 110,576,395 105,786,235 4 ,790,160
Excess of Revenues Over Expenditures (5,372,010) (8,479,452) (7,709,842) 769,610
OTHER FINANCING SOURCES (USES)
Insurance Proceeds - 67,579 9 9,028 31,449
Transfers In 1,482,121 2,326,199 2 ,320,569 (5,630)
Transfers Out (3,124,417) (3,315,882) (2,922,343) 393,539
Total Other Financing Sources (Uses) (1,642,296) (922,104) (502,746) 419,358
Net Increase (Decrease) in Fund Balance $ (7,014,306) $ (9,401,556) (8,212,588) $ 1 ,188,968
Fund Balances, July 1 14,031,110
Fund Balances, June 30 $ 5,818,522
- 115 -

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGETARY BASIS
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2011
VARIANCE
ORIGINAL FINAL ACTUAL POSITIVE
TAXES - LOCAL BUDGET BUDGET REVENUES (NEGATIVE)
Local Property Taxes
Real and Personal Property (Net) $ 58,594,809 $ 58,594,809 $ 58,639,133 $ 44,324
Railroad and Public Utilities 1,240,000 1,240,000 1,127,738 (112,262)
Penalties and Interest 100,000 100,000 295,080 195,080
Total Local Property Taxes 59,934,809 59,934,809 60,061,951 127,142
Local Income Tax 32,980,024 32,980,024 29,527,496 (3,452,528)
Other Local Taxes
Admission and Amusement Tax 175,000 175,000 141,536 (33,464)
Recordation Tax 2,650,000 2,650,000 2,426,641 (223,359)
Hotel Tax 420,000 420,000 441,123 21,123
Total Other Local Taxes 3,245,000 3,245,000 3,009,300 (235,700)
Total Taxes - Local 96,159,833 96,159,833 92,598,747 (3,561,086)
LICENSES AND PERMITS
Beer, Wine and Liquor 102,000 102,000 103,980 1,980
Traders 53,415 53,415 76,476 23,061
Marriage Licenses - - 3,740 3,740
Animal Control 39,500 39,500 43,816 4,316
Electrical Board of Examiners 20,000 20,000 31,430 11,430
Electrical Inspections 7,500 7,500 7,475 ( 25)
Cable TV 315,000 315,000 328,830 13,830
Zoning Permits 50,000 50,000 62,092 12,092
Plumbing Permits 65,250 65,250 87,724 22,474
Sediment Fees 12,000 12,000 27,020 15,020
Building Permits 101,500 101,500 144,715 43,215
Other 1,000 1,000 2,365 1,365
Total Licenses and Permits 767,165 767,165 919,663 152,498
INTERGOVERNMENTAL
Police Protection 341,068 341,068 225,490 (115,578)
Fire/Rescue/Ambulance 591,216 524,964 516,518 (8,446)
Conservation of Natural Resources 14,000 7,000 7,000 -
Bond Interest Reimbursement - Build America Bond 425,278 425,278 438,022 12,744
Other 463,292 1,229,300 1,184,735 (44,565)
Total Intergovernmental 1,834,854 2,527,610 2,371,765 (155,845)
CONTINUED
- 116 -

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGETARY BASIS
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
VARIANCE
ORIGINAL FINAL ACTUAL POSITIVE
BUDGET BUDGET REVENUES (NEGATIVE)
CHARGES FOR CURRENT SERVICES
Discovery Fees $ 2,000 $ 2,000 $ 1,425 $ ( 575)
Rezoning Filings 1,000 1,000 390 ( 610)
Zoning Appeals 4,500 4,500 4,575 75
Development Review 99,000 155,000 115,262 (39,738)
Sheriff 84,518 85,018 55,670 (29,348)
Ambulance Fee 716,000 660,000 659,510 ( 490)
Detention Center Fees 24,500 24,500 41,223 16,723
Recycling 107,000 107,000 178,203 71,203
Disposal Fees 491,915 491,915 334,475 (157,440)
Inspection Fees 62,000 62,000 45,134 (16,866)
Recreation Fees 58,040 67,550 85,561 18,011
Johnsongrass Spraying 60,000 60,000 25,963 (34,037)
Merchandise Sales 100 100 1,096 996
4-H Park Fees - - 4,700 4,700
Miscellaneous User Fees - - 500 500
Total Charges for Current Services 1,710,573 1,720,583 1,553,687 (166,896)
FINES AND FORFEITURES
Court Fines 32,250 32,250 36,054 3,804
Confiscated Assets - - 190 190
Total Fines and Forfeitures 32,250 32,250 36,244 3,994
INVESTMENT INCOME 227,181 227,181 50,109 (177,072)
MISCELLANEOUS REVENUES AND DONATIONS
Rental Income 15,000 21,000 23,459 2,459
Donations 10,300 30,925 35,335 4,410
Miscellaneous 40,958 610,396 487,384 (123,012)
Total Miscellaneous Revenues and Donations 66,258 662,321 546,178 (116,143)
OTHER FINANCING SOURCES
Insurance Proceeds - 67,579 99,028 31,449
Transfers In:
Impact Fees - School 1,408,120 1,408,120 1,408,120 -
General Capital Projects - 850,000 849,467 ( 533)
Kent Narrows 39,987 39,987 39,987 -
Community Partnerships 18,014 22,092 16,995 ( 5,097)
Inmate Welfare 10,000 - - -
Economic Development Commission 6,000 6,000 6,000 -
Total Transfers In 1,482,121 2,326,199 2,320,569 ( 5,630)
Total Other Financing Sources 1,482,121 2,393,778 2,419,597 25,819
Total General Fund Revenues and Other Financing Sources
Before Appropriated Fund Balance 102,280,235 104,490,721 100,495,990 (3,994,731)
Fund Balance - Appropriation (Surplus) 7,014,306 9,401,556 - (9,401,556)
Total General Fund Revenues, Other Financing Sources
and Fund Balance Appropriation $ 109,294,541 $ 113,892,277 $ 100,495,990 $ (13,396,287)
- 117 -

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGETARY BASIS
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2011
ACTUAL VARIANCE
PERSONNEL OTHER CAPITAL ORIGINAL FINAL POSITIVE
COSTS OPERATING OUTLAY TOTAL BUDGET BUDGET (NEGATIVE)
GENERAL GOVERNMENT
Legislative $ 565,530 $ 127,025 $ - $ 692,555 $ 789,340 $ 789,340 $ 96,785
Judicial
Circuit Court/Macro Mediation/Family Services/Court Master 261,566 152,655 - 414,221 470,734 465,327 51,106
Orphan's Court 72,936 6,008 - 78,944 70,690 79,690 746
State's Attorney/Victim Witness/Cease Fire 1,110,779 53,972 - 1,164,751 1,240,711 1,253,211 88,460
Executive
County Administrator 355,099 8,512 - 363,611 459,638 446,638 83,027
Elections
Board of Election Supervisors 25,791 466,393 - 492,184 542,073 542,073 49,889
Financial Administration 838,897 171,665 - 1,010,562 1,075,030 1,075,030 64,468
Human Resources Administration 448,467 70,396 - 518,863 604,925 604,925 86,062
Planning 523,587 9,435 - 533,022 692,760 619,458 86,436
Zoning 1,177,348 305,862 - 1,483,210 1,598,296 1,666,598 183,388
Management Information Systems 470,282 150,821 - 621,103 673,524 673,524 52,421
General Services 627,967 1,333,551 - 1,961,518 2,030,994 2,065,994 104,476
Other General Government
Liquor Board 39,240 4,533 - 43,773 83,053 83,053 39,280
Electrical Board 453 795 - 1,248 9,915 9,915 8,667
Legal 119,239 291,133 - 410,372 350,295 415,295 4,923
Total General Government 6,637,181 3,152,756 - 9,789,937 10,691,978 10,790,071 1,000,134
PUBLIC SAFETY
Sheriff's Office 5,132,321 795,834 144,608 6,072,763 6,562,060 6,466,560 393,797
Volunteer Fire and Rescue Services - 2,888,607 - 2,888,607 2,970,918 2,970,918 82,311
Detention Center 3,234,103 854,133 - 4,088,236 4,560,503 4,560,503 472,267
Animal Control 728,220 137,502 16,130 881,852 933,477 954,102 72,250
Eastern Shore Alliance 336 363,858 - 364,194 - 364,194 -
Emergency Services 5,661,325 860,779 27,464 6,549,568 6,888,679 7,163,866 614,298
Total Public Safety 14,756,305 5,900,713 188,202 20,845,220 21,915,637 22,480,143 1,634,923
PUBLIC WORKS
Administration 390,623 6,693 - 397,316 528,433 528,433 131,117
Other Public Roads - 17,029 - 17,029 25,824 25,824 8,795
Solid Waste Disposal 1,085,533 741,498 49,993 1,877,024 2,296,473 2,416,857 539,833
Engineering Division 661,880 35,515 - 697,395 758,293 751,293 53,898
Total Public Works 2,138,036 800,735 49,993 2,988,764 3,609,023 3,722,407 733,643
HEALTH
Health Department 117,954 1,552,268 - 1,670,222 1,866,559 1,916,559 246,337
SOCIAL SERVICES
MEAP - MD Energy Assistance Program 122,267 - - 122,267 121,505 127,790 5,523
Other Social Services 129,248 33,350 - 162,598 163,354 167,354 4,756
Total Social Services 251,515 33,350 - 284,865 284,859 295,144 10,279
CONTINUED
- 118 -

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGETARY BASIS
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
ACTUAL VARIANCE
PERSONNEL OTHER CAPITAL ORIGINAL FINAL POSITIVE
COSTS OPERATING OUTLAY TOTAL BUDGET BUDGET (NEGATIVE)
EDUCATION
Board of Education $ - $ 47,957,462 $ - $ 47,957,462 $ 47,957,462 $ 47,957,462 $ -
Chesapeake College - 1,734,415 - 1,734,415 1,734,415 1,734,415 -
Total Education - 49,691,877 - 4 9,691,877 49,691,877 4 9,691,877 -
PARKS
Parks 1,465,658 416,759 - 1,882,417 1,995,205 2,046,752 164,335
Administration 462,804 28,316 - 491,120 618,671 618,671 127,551
Total Parks 1,928,462 445,075 - 2,373,537 2,613,876 2,665,423 291,886
LIBRARY
Queen Anne's County Free Library - 1,433,725 - 1,433,725 1,423,851 1,433,851 126
CONSERVATION OF NATURAL RESOURCES
Cooperative Extension Services 48,147 198,842 - 246,989 260,192 260,192 13,203
Soil Conservation Services 126,947 - - 126,947 139,749 139,749 12,802
Weed Control 80,703 10,318 - 91,021 118,002 118,002 26,981
4-H Park - 67,011 - 67,011 73,178 73,178 6,167
Total Conservation of Natural Resources 255,797 276,171 - 531,968 591,121 591,121 59,153
ECONOMIC AND COMMUNITY DEVELOPMENT
Public Housing Authority - 318,319 - 318,319 318,319 318,319 -
Business & Tourism 551,622 157,558 - 709,180 800,831 788,906 79,726
Total Economic and Community Development 5 51,622 475,877 - 1 ,027,499 1,119,150 1 ,107,225 7 9,726
DEBT SERVICE
Debt Service - Principal - 6,835,118 - 6,835,118 7,595,213 8,170,213 1,335,095
Debt Service - Interest and Fiscal Charges - 3,614,051 - 3,614,051 3,528,175 3,618,175 4,124
Total Debt Service - 10,449,169 - 10,449,169 11,123,388 11,788,388 1,339,219
MISCELLANEOUS
Aid to Municipalities - 234,171 - 234,171 228,686 234,686 515
Aid to Other Agencies - 50,904 - 50,904 35,904 50,904 -
Insurance & Benefits / (Reimbursements) 3,361,393 985,179 - 4,346,572 1,533,350 4,347,731 1,159
Contingencies - 67,805 - 67,805 50,865 70,865 3,060
Total Miscellaneous 3,361,393 1,338,059 - 4,699,452 1,848,805 4,704,186 4,734
REVERSIONS
Salary Reversions - - - - (610,000) (610,000) ( 610,000)
OTHER FINANCING USES
Transfers Out To:
Law Library - 9,744 - 9,744 13,275 13,275 3,531
Department of Aging - 1,439,319 - 1,439,319 1,703,430 1,696,784 257,465
Department of Housing and Community Services - 381,931 - 381,931 464,656 464,656 82,725
Agricultural Transfer Tax Fund - 10,000 - 10,000 10,000 10,000 -
Roads Board Operating - - - - 31,500 31,500 31,500
Sanitary District - Sewer/Admin - - - - 4,725 4,725 4,725
Sanitary District - Water - 81,072 - 81,072 81,072 81,072 -
Impact Fees - Fire Companies/Contingencies - 40,159 - 40,159 25,000 40,159 -
General Capital Projects Fund - 125,000 - 125,000 - 125,000 -
Parks & Recreation Enterprise - Airport - 62,740 - 62,740 65,149 65,149 2,409
Parks & Recreation Enterprise - Programs - 443,110 - 443,110 443,110 443,110 -
Parks & Recreation Enterprise - Property Mgmt - 25,000 - 25,000 25,000 25,000 -
Community Partnerships (Admin) - 204,269 - 204,269 157,500 215,452 11,183
Community Partnerships (Education program) - 99,999 - 99,999 100,000 100,000 1
Total Transfers Out - 2,922,343 - 2,922,343 3,124,417 3,315,882 393,539
Total Expenditures and Other Financing Uses $ 29,998,265 $ 78,472,118 $ 238,195 $ 108,708,578 $ 109,294,541 $ 113,892,277 $ 5,183,699
- 119 -

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ROADS BOARD SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2011
VARIANCE
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
State Shared Taxes $ 154,217 $ 154,217 $ 1 97,776 $ 4 3,559
Intergovernmental 1,299,936 1,299,936 3 28,943 (970,993)
Charges for Current Services 205,000 205,000 2 90,779 8 5,779
Investment Income 50,000 50,000 4,797 (45,203)
Miscellaneous - - 86,264 8 6,264
Total Revenues 1,709,153 1,709,153 9 08,559 (800,594)
EXPENDITURES
Current
Public Works 5,190,111 5,190,111 3 ,493,027 1,697,084
Capital Outlay 70,000 83,732 13,732 7 0,000
Total Expenditures 5,260,111 5,273,843 3 ,506,759 1,767,084
Excess of Revenues Over (Under) Expenditures (3,550,958) (3,564,690) (2,598,200) 9 66,490
OTHER FINANCING SOURCES (USES)
Proceeds of Sale of Capital Assets - - 2,208 2,208
Transfers In 629,524 629,524 - (629,524)
Total Other Financing Sources (Uses) 629,524 629,524 2,208 (627,316)
Net Increase (Decrease) in Fund Balances $ (2,921,434) $ (2,935,166) (2,595,992) $ 339,174
Fund Balances, July 1 4 ,194,561
Fund Balances, June 30 $ 1,598,569
- 120 -

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.
- 121 -

- 122 -

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.
- 123 -

NON-MAJOR GOVERNMENTAL FUNDS
Non-major governmental funds are special revenue funds, unless otherwise
noted:
Department of Aging – This fund accounts for activities funded primarily by grants to
provide services for the elderly and is included in the social services function.
Housing and Community Services – This fund accounts for activities funded mostly by
grants and revolving loan funds that support housing rehabilitation and home-ownership
and is included in the economic and community development function.
Revolving Loan Fund – This fund accounts for activities funded by community
donations and grants to promote and provide economic development loans to local
businesses and is included in the economic and community development function.
Community Partnerships for Children – This fund accounts for activities funded by
grants allocated to the County that provide services for children and families and is
included in the social services function.
Critical Areas – This fund accounts for activities funded by payments in lieu of
performance bonds that support efforts to mitigate and preserve critical areas along the
shoreline of tidal waters within the County and is included in the conservation of natural
resources function.
Law Library – This fund accounts for activities funded by court fees, fines, and
contributions from local attorneys to update legal reference materials housed in the
courthouse and is included in the general government function.
Sheriff’s Drug Task Force – This fund accounts for activities funded by drug-related
forfeitures that support drug interdiction efforts by a multi-faceted task force and is
included in the public safety function.
Inmate Welfare Fund – This fund accounts for activities funded by profits earned from
Detention Center inmate-related services that promote the welfare of the inmates and is
included in the public safety function.
Agricultural Transfer Tax – This fund accounts for activities funded primarily by the
Agricultural Transfer Tax to purchase agricultural easements that preclude development
and is included in the conservation of natural resources function.
Rural Legacy – This fund accounts for activities funded primarily by Maryland’s Rural
Legacy Program to purchase easements that preclude development and is included in
the conservation of natural resources function.
- 124 -

Purchase of Developments Rights Fund – This fund accounts for activities funded by
Queen Anne’s County to acquire easements to restrict the use of agricultural land and
woodland and is included in the conservation of natural resources function.
Dredging Special Assessments – This fund accounts for activities funded by special
assessment funds collected to repay loans for specific dredging projects that benefited
Price’s Creek and Grove Creek and is included in the conservation of natural resources
function.
Kent Narrows – This fund accounts for activities funded by tax revenues to repay
parking improvement bonds and is included in the economic and community
development function.
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.
- 125 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2011
COMMUNITY
HOUSING AND PARTNERSHIPS
DEPARTMENT COMMUNITY REVOLVING FOR CRITICAL
OF AGING SERVICES LOAN FUND CHILDREN AREAS
ASSETS
Cash and Cash Equivalents $ 148,979 $ 786,552 $ 397,864 $ 313,620 $ 131,343
Prepaid Items - 247 - - -
Receivables
Accounts Receivable (Net) - 4,551 9,522 - -
Loans Receivable - 3,664,409 175,683 - -
Special Assessments (Net) - - - - -
Due from Other Governments 206,361 29,911 - 268,616 -
Total Assets $ 355,340 $ 4,485,670 $ 583,069 $ 582,236 $ 131,343
LIABILITIES AND FUND BALANCES
Liabilities
Accrued Liabilities $ 92,862 $ 12,599 $ - $ 190,304 $ -
Due to Other Funds 130,522 119,727 - 8,411 -
Due to Other Governmental Agencies - - - 307,952 -
Deferred Revenue 1,047 56,283 - - -
Total Liabilities 224,431 188,609 - 506,667 -
Fund Balances
Nonspendable - 3,664,409 175,683 - -
Restricted 4,072 734,665 407,386 - 131,343
Assigned 126,837 - - 75,569 -
Unassigned - (102,013) - - -
Total Fund Balances 130,909 4,297,061 583,069 75,569 131,343
Total Liabilities and Fund Balances $ 355,340 $ 4,485,670 $ 583,069 $ 582,236 $ 131,343
- 126 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2011
(CONTINUED)
SHERIFF'S
DRUG INMATE PURCHASE OF
LAW TASK WELFARE AGRICULTURAL RURAL DEVELOPMENT
LIBRARY FORCE FUND TRANSFER LEGACY RIGHTS
$ 3,664 $ 165,875 $ 250,812 $ 178,350 $ 1,025,176 $ 1,097,185
- - - - - -
5,811 - 4 ,537 - - 77,132
- - - - - -
- - - - - -
- - - - - -
$ 9,475 $ 165,875 $ 255,349 $ 178,350 $ 1,025,176 $ 1,174,317
$ 11,068 $ 78,572 $ 4 ,971 $ 1,257 $ - $ -
- - - - - -
- - 11,854 - - -
- - - - - -
11,068 78,572 16,825 1,257 - -
- - - - - -
- 87,303 238,524 177,093 1,025,176 1,174,317
- - - - - -
(1,593) - - - - -
(1,593) 87,303 238,524 177,093 1,025,176 1,174,317
$ 9,475 $ 165,875 $ 255,349 $ 178,350 $ 1,025,176 $ 1,174,317
CONTINUED
- 127 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2011
(CONTINUED)
CAPITAL
CAPITAL PROJECTS -
DREDGING PROJECTS - PARKS AND TOTAL
SPECIAL KENT FIRE COMPANY RECREATION NON-MAJOR
ASSESSMENTS NARROWS IMPACT FEES IMPACT FEES GOVERNMENTAL
ASSETS
Cash and Cash Equivalents $ 16,016 $ 2 17,175 $ 234,859 $ 100,711 $ 5,068,181
Prepaid Items - - - - 247
Receivables
Accounts Receivable (Net) 265 12,451 - - 114,269
Loans Receivable - - 49,320 45,719 3,935,131
Special Assessments (Net) 683,394 - - - 683,394
Due from Other Governments - - - - 504,888
Total Assets $ 699,675 $ 2 29,626 $ 284,179 $ 146,430 $ 10,306,110
LIABILITIES AND FUND BALANCES
Liabilities
Accrued Liabilities $ - $ 409 $ - $ - $ 392,042
Due to Other Funds - - 68,775 - 327,435
Due to Other Governmental Agencies - - - - 319,806
Deferred Revenue 683,394 - 49,320 45,719 835,763
Total Liabilities 683,394 409 118,095 45,719 1,875,046
Fund Balances
Nonspendable - - - - 3,840,092
Restricted 16,281 229,217 234,859 100,711 4,560,947
Assigned - - - - 202,406
Unassigned - - (68,775) - (172,381)
Total Fund Balances 16,281 229,217 166,084 100,711 8,431,064
Total Liabilities and Fund Balances $ 699,675 $ 2 29,626 $ 284,179 $ 146,430 $ 10,306,110
- 128 -

- 129 -

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, 2011
COMMUNITY
HOUSING AND PARTNERSHIPS
DEPARTMENT COMMUNITY REVOLVING FOR CRITICAL
OF AGING SERVICES LOAN FUND CHILDREN AREAS
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ -
Other Local Taxes - Admission and Amusement Taxes - - - - -
Recordation Taxes - 97,408 - - -
State Shared Taxes - - - - -
Intergovernmental 872,160 300,281 - 1,010,975 -
Charges for Current Services 69,382 - - - 513
Fines and Forfeitures - - - - -
Investment Income 156 6,150 9 ,538 44 -
Donations 60,203 - - 1,000 -
Miscellaneous 1,133 - - 47,075 -
Total Revenues 1,003,034 403,839 9 ,538 1,059,094 513
EXPENDITURES
Current
General Government - - - - -
Public Safety - - - - -
Social Services 2,440,871 - - 1,346,322 -
Conservation of Natural Resources - - - - -
Economic/Community Development - 683,014 - - -
Capital Outlay 7,555 - - - -
Debt Service
Principal - - - - -
Interest and Fiscal Charges - - - - -
Total Expenditures 2,448,426 683,014 - 1,346,322 -
Excess of Revenues Over (Under) Expenditures (1,445,392) (279,175) 9 ,538 (287,228) 513
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals 15,651 - - - -
Transfers In 1,439,319 596,672 - 304,268 -
Transfers Out - - - (16,995) -
Other Financing Sources (Uses) 1,454,970 596,672 - 287,273 -
Net Increase (Decrease) in Fund Balances 9,578 317,497 9 ,538 45 513
Fund Balances, July 1 121,331 3,979,564 573,531 75,524 1 30,830
Fund Balances, June 30 $ 130,909 $ 4,297,061 $ 583,069 $ 75,569 $ 1 31,343
- 130 -

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, 2011
(CONTINUED)
SHERIFF'S
DRUG INMATE PURCHASE OF
LAW TASK WELFARE AGRICULTURAL RURAL DEVELOPMENT
LIBRARY FORCE FUND TRANSFER LEGACY RIGHTS
$ - $ - $ - $ - $ - $ -
- - - - - -
- - - - - 723,801
- - - 32,625 - -
- - - - 518,300 -
11,282 - 63,257 - - -
15,699 26,402 - - - -
67 309 429 282 1,772 2,349
- - - - - -
23,120 - 31,995 - - -
50,168 26,711 95,681 32,907 520,072 726,150
83,535 - - - - -
- 57,918 105,769 - - -
- - - - - -
- - - - 1,112,562 -
- - - - - -
- 3,870 - - - -
- - - - - 85,015
- - - - - 15,375
83,535 61,788 105,769 - 1,112,562 100,390
(33,367) (35,077) (10,088) 32,907 (592,490) 625,760
- - - - - -
9,744 - - 10,000 - -
- - - - - (207,000)
9,744 - - 10,000 - (207,000)
(23,623) (35,077) (10,088) 42,907 (592,490) 418,760
22,030 122,380 248,612 134,186 1,617,666 755,557
$ (1,593) $ 87,303 $ 238,524 $ 177,093 $ 1,025,176 $ 1,174,317
CONTINUED
- 131 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
CAPITAL
CAPITAL PROJECTS -
DREDGING PROJECTS - PARKS AND TOTAL
SPECIAL KENT FIRE COMPANY RECREATION NON-MAJOR
ASSESSMENTS NARROWS IMPACT FEES IMPACT FEES GOVERNMENTAL
REVENUES
Taxes
Local Property Tax $ - $ 36,008 $ - $ - $ 36,008
Other Local Taxes - Admission and Amusement Taxes - 47,179 - - 47,179
Recordation Taxes - - - - 821,209
State Shared Taxes - - - - 32,625
Intergovernmental - - - - 2,701,716
Charges for Current Services 4 4,178 - 195,461 100,071 484,144
Fines and Forfeitures - - - - 42,101
Investment Income 651 - 529 639 22,915
Donations - - - - 61,203
Miscellaneous - - - - 103,323
Total Revenues 4 4,829 83,187 195,990 100,710 4,352,423
EXPENDITURES
Current
General Government - - - - 83,535
Public Safety - - 296,873 - 460,560
Social Services - - - - 3,787,193
Conservation of Natural Resources - - - - 1,112,562
Economic/Community Development - 5,011 - - 688,025
Capital Outlay - - - - 11,425
Debt Service
Principal 4 4,425 - - - 129,440
Interest and Fiscal Charges - - - - 15,375
Total Expenditures 4 4,425 5,011 296,873 - 6,288,115
Excess of Revenues Over (Under) Expenditures 404 78,176 (100,883) 100,710 (1,935,692)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - 15,651
Transfers In - - 40,159 - 2,400,162
Transfers Out - (45,987) - (323,525) (593,507)
Other Financing Sources (Uses) - (45,987) 40,159 (323,525) 1,822,306
Net Increase (Decrease) in Fund Balances 404 32,189 (60,724) (222,815) (113,386)
Fund Balances, July 1 1 5,877 197,028 226,808 323,526 8,544,450
Fund Balances, June 30 $ 1 6,281 $ 229,217 $ 166,084 $ 100,711 $ 8,431,064
- 132 -

- 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, 2011
DEPARTMENT OF AGING HOUSING AND COMMUNITY SERVICES
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Other Local Taxes - Admission and Amusement Taxes - - - - - - - -
Recordation Taxes - - - - 50,000 5 0,000 9 7,408 47,408
State Shared Taxes - - - - - - - -
Intergovernmental 8 78,626 915,223 872,160 ( 43,063) 165,486 3 58,042 3 00,281 ( 57,761)
Charges for Current Services 6 1,811 61,811 69,382 7,571 - - - -
Fines and Forfeitures - - - - - - - -
Investment Income - - 156 156 - - 6 ,150 6,150
Donations 5 6,000 56,690 60,203 3,513 - - - -
Miscellaneous 1 ,000 1,433 1,133 ( 300) - - - -
Total Revenues 9 97,437 1,035,157 1,003,034 ( 32,123) 215,486 4 08,042 4 03,839 ( 4,203)
EXPENDITURES
Current Operating Expenditures 2 ,692,721 2,727,321 2,440,871 286,450 680,142 1 ,670,439 6 83,014 987,425
Capital Outlay 1 ,500 11,846 7,555 4,291 - - - -
Debt Service
Principal - - - - - - - -
Interest and Fiscal Charges - - - - - - - -
Total Expenditures 2 ,694,221 2,739,167 2,448,426 290,741 680,142 1 ,670,439 6 83,014 987,425
Excess of Revenues Over (Under) Expenditures (1,696,784) (1,704,010) (1,445,392) 258,618 ( 464,656) (1,262,397) (279,175) 983,222
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - 7,226 15,651 8,425 - - - -
Transfers In 1 ,696,784 1,696,784 1,439,319 ( 257,465) 464,656 6 79,397 5 96,672 ( 82,725)
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) 1 ,696,784 1,704,010 1,454,970 ( 249,040) 464,656 6 79,397 5 96,672 ( 82,725)
Net Increase (Decrease) in Fund Balances $ - $ - 9,578 $ 9,578 $ - $ (583,000) 3 17,497 $ 900,497
Fund Balances, July 1 121,331 3 ,979,564
Fund Balances, June 30 $ 130,909 $ 4 ,297,061
- 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, 2011
(CONTINUED)
COMMUNITY PARTNERSHIPS FOR CHILDREN LAW LIBRARY INMATE WELFARE FUND
VARIANCE VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - - - - - -
- - - - - - - - - - - -
- - - - - - - - - - - -
1,253,967 1,074,457 1,010,975 (63,482) - - - - - - - -
- - - - 13,000 13,000 11,282 (1,718) 90,000 90,000 63,257 (26,743)
- - - - 21,000 21,000 15,699 (5,301) - - - -
- - 44 44 25 25 6 7 42 5,250 5,250 429 (4,821)
- - 1,000 1,000 - - - - - - - -
15,230 52,296 47,075 (5,221) 25,000 25,000 23,120 (1,880) 40,000 40,000 31,995 (8,005)
1,269,197 1,126,753 1,059,094 (67,659) 59,025 59,025 50,168 (8,857) 135,250 135,250 95,681 (39,569)
1,508,682 1,421,113 1,346,322 74,791 72,300 83,800 83,535 265 125,250 125,250 105,769 19,481
- - - - - - - - 40,000 40,000 - 40,000
- - - - - - - - - - - -
- - - - - - - - - - - -
1,508,682 1,421,113 1,346,322 74,791 72,300 83,800 83,535 265 165,250 165,250 105,769 59,481
(239,485) (294,360) ( 287,228) 7,132 (13,275) (24,775) (33,367) (8,592) (30,000) (30,000) (10,088) 19,912
- - - - - - - - - - - -
257,500 315,452 304,268 (11,184) 13,275 13,275 9,744 (3,531) - - - -
(18,015) (22,092) ( 16,995) 5,097 - - - - - - - -
239,485 293,360 287,273 (6,087) 13,275 13,275 9,744 (3,531) - - - -
$ - $ (1,000) 45 $ 1,045 $ - $ (11,500) (23,623) $ (12,123) $ (30,000) $ (30,000) (10,088) $ 19,912
75,524 22,030 248,612
$ 75,569 $ (1,593) $ 238,524
CONTINUED
- 135 -

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
AGRICULTURAL TRANSFER RURAL LEGACY
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Other Local Taxes - Admission and Amusement Taxes - - - - - - - -
Recordation Taxes - - - - - - - -
State Shared Taxes 155,000 155,000 32,625 (122,375) - - - -
Intergovernmental - - - - - 518,299 518,300 1
Charges for Current Services - - - - - - - -
Fines and Forfeitures - - - - - - - -
Investment Income - - 282 282 - - 1,772 1,772
Donations - - - - - - - -
Miscellaneous - - - - - - - -
Total Revenues 155,000 155,000 32,907 (122,093) - 518,299 520,072 1,773
EXPENDITURES
Current Operating Expenditures 165,000 165,000 - 165,000 - 1,131,905 1,112,562 19,343
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Interest and Fiscal Charges - - - - - - - -
Total Expenditures 165,000 165,000 - 165,000 - 1,131,905 1,112,562 19,343
Excess of Revenues Over (Under) Expenditures (10,000) (10,000) 32,907 42,907 - (613,606) (592,490) 21,116
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Transfers In 10,000 10,000 10,000 - - - - -
Transfers Out - - - - - - - -
Total Other Financing Sources (Uses) 10,000 10,000 10,000 - - - - -
Net Increase (Decrease) in Fund Balances $ - $ - 42,907 $ 42,907 $ - $ (613,606) (592,490) $ 21,116
Fund Balances, July 1 134,186 1,617,666
Fund Balances, June 30 $ 177,093 $ 1,025,176
- 136 -

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
PURCHASE OF DEVELOPMENT RIGHTS DREDGING SPECIAL ASSESSMENTS KENT NARROWS
VARIANCE VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
$ - $ - $ - $ - $ - $ - $ - $ - $ 22,000 $ 22,000 $ 36,008 $ 14,008
- - - - - - - - 48,000 48,000 47,179 (821)
- 100,390 723,801 623,411 - - - - - - - -
- - - - - - - - - - - -
- - - - - - - - - - - -
- - - - 48,625 44,425 44,178 ( 247) - - - -
- - 2,349 2,349 - - - - - - - -
- - - - - - 651 651 - - - -
- - - - - - - - - - - -
- - - - - - - - - - - -
- 100,390 726,150 625,760 48,625 44,425 44,829 404 70,000 70,000 83,187 13,187
- - - - - - - - 8,500 8,500 5,011 3,489
- - - - - - - - - - - -
- 85,015 85,015 - 42,189 44,425 44,425 - - - - -
- 15,375 15,375 - - - - - - - - -
- 100,390 100,390 - 42,189 44,425 44,425 - 8,500 8,500 5,011 3,489
- - 625,760 625,760 6,436 - 404 404 61,500 61,500 78,176 16,676
- - - - - - - - - - - -
- - - - - - - - - - - -
- (207,000) (207,000) - - - - - (45,987) (45,987) (45,987) -
- (207,000) (207,000) - - - - - (45,987) (45,987) (45,987) -
$ - $ (207,000) 418,760 $ 625,760 $ 6,436 $ - 404 $ 404 $ 15,513 $ 15,513 32,189 $ 16,676
755,557 15,877 197,028
$ 1,174,317 $ 16,281 $ 229,217
CONTINUED
- 137 -

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGETARY BASIS
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
CAPITAL PROJECTS - FIRE COMPANY IMPACT FEES CAPITAL PROJECTS - PARKS & RECREATION IMPACT FEES
VARIANCE VARIANCE
ORIGINAL FINAL POSITIVE ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE) BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Taxes
Local Property Tax $ - $ - $ - $ - $ - $ - $ - $ -
Other Local Taxes - Admission and Amusement Taxes - - - - - - - -
Recordation Taxes - - - - - - - -
State Shared Taxes - - - - - - - -
Intergovernmental - - - - - - - -
Charges for Current Services 4 50,000 450,000 195,461 (254,539) 80,000 8 0,000 100,071 20,071
Fines and Forfeitures - - - - - - - -
Investment Income 6 ,000 6,000 529 (5,471) 6,000 6 ,000 639 (5,361)
Donations - - - - - - - -
Miscellaneous - - - - - - - -
Total Revenues 4 56,000 456,000 195,990 (260,010) 86,000 8 6,000 100,710 14,710
EXPENDITURES
Current Operating Expenditures - 296,873 296,873 - - - - -
Capital Outlay - - - - - - - -
Debt Service
Principal - - - - - - - -
Interest and Fiscal Charges - - - - - - - -
Total Expenditures - 296,873 296,873 - - - - -
Excess of Revenues Over (Under) Expenditures 4 56,000 159,127 ( 100,883) (260,010) 86,000 8 6,000 100,710 14,710
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Asset Disposals - - - - - - - -
Transfers In - 40,160 40,159 (1) - - - -
Transfers Out - - - - - (323,525) ( 323,525) -
Total Other Financing Sources (Uses) - 40,160 40,159 (1) - (323,525) ( 323,525) -
Net Increase (Decrease) in Fund Balances $ 4 56,000 $ 199,287 ( 60,724) $ (260,011) $ 86,000 $ (237,525) ( 222,815) $ 14,710
Fund Balances, July 1 226,808 323,526
Fund Balances, June 30 $ 166,084 $ 100,711
- 138 -

CAPITAL PROJECTS FUNDS
Capital Projects Funds are used for the acquisition or construction of major capital facilities, as
well as other large multi-year projects that relate to capital assets, that are financed from general
governmental resources.
We do not amend closed projects in the General Capital Projects Fund or Roads Capital Projects
Fund. The names of these projects begin with a CLS. Once the project is closed, it is considered
null and void and there is no remaining authority, and therefore we do not amend those after the
fact.
Force in kind capital projects do not contain any budget authority. These projects are only
intended as a tracking tool. Most costs associated with force in kind projects are related to staff
costs and the project is attached to the employee’s normal activity, which contains the budget
authority.
General Capital Projects – This fund accounts for capital project activities funded by all
governmental resources, except those reserved for use in the Roads Capital Projects Fund,
noted below.
Roads Capital Projects - This fund accounts for capital project activities funded by governmental
resources specifically reserved for use in the Roads Capital Projects Fund. These resources
consist of State-Shared Highway User Tax, which is mandated for this use, plus federal, state,
and local roads-related grants and transfers.
School Impact Fees Capital Projects - This fund accounts for financial resources generated by
new residential construction and used for the construction of public school facilities or payment of
school debt relating to such construction.
- 139 -

QUEEN ANNE'S COUNTY MARYLAND
CAPITAL PROJECTS FUNDS
SCHEDULE OF APPROPRIATIONS AND EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2011
EXPENDITURES INCLUDED IN CAPITALIZED
TOTAL PRIOR CURRENT UNEXPENDED CONSTRUCTION CURRENT
PROJ # GENERAL CAPITAL PROJECTS: APPROPRIATION YEARS YEAR TOTAL APPROPRIATIONS IN PROGRESS YEAR
GENERAL GOVERNMENT
400003 County Facilities Program $ 851,446 $ 774,133 $ 44,559 $ 818,692 $ 3 2,754 $ - $ -
400007 GASB/Tax System Update 84,000 13,990 1 ,487 15,477 6 8,523 - 1,309
400009 CLS - Finance System (See Transfers) 753,476 731,409 19,265 750,674 2,802 - -
400015 County Wide Mapping 815,000 646,096 - 646,096 1 68,904 - -
400027 Strategic Planning 576,602 386,834 - 386,834 1 89,768 - -
400029 CLS - Comp & Community Plans 715,000 556,821 55,614 612,435 1 02,565 - -
400031 Mgt Info Systems Network 812,375 682,831 20,175 703,006 1 09,369 - 4,491
400051 CLS - Historic Sites Survey 116,986 108,913 8 ,073 116,986 - - -
400233 Rec Mgmt Sys - Non Fin 205,000 159,661 - 159,661 4 5,339 - -
400269 Tax Ditches - Beaverdam 64,500 43,496 - 43,496 2 1,004 - -
400271 Tax Ditches - Longmarsh 64,000 53,140 - 53,140 1 0,860 - -
400359 Public Drainage 200,000 - - - 2 00,000 - -
400363 Church Hill Pond Stabilization 200,000 17,682 52,431 70,113 1 29,887 - -
400375 Sustainable Communities Council 5,000 1 ,649 52 1,701 3,299 - -
400377 BNR Septic Retrofit Grant 5,000 - - - 5,000 - -
400443 CLS - Kennard Alumni Association 345,000 225,000 120,000 345,000 - - -
400449 Nesbit Road ER Infrastructure 3,000,000 2,448,484 25,639 2,474,123 5 25,877 1,743,847 25,639
400457 GIS & Strategic Plan Land Use 65,000 20,821 - 20,821 4 4,179 - -
400461 CLS - Courthouse Basement 25,214 10,783 - 10,783 1 4,431 - -
400483 2009 Bond Issuance - Consultant and Advertising Expense 182,863 157,507 - 157,507 2 5,356 - -
400483 2009 Bond Issuance - Allocation of Prior Years Debt Issuance 145,884 145,884 (3,155) 142,729 3,155 - -
400557 Security Upgrade & Generator 170,000 - 84,750 84,750 8 5,250 84,750 84,750
400561 CLS - Courthouse Property Acquisition (See Transfers) 1,586,284 1,314,231 - 1,314,231 2 72,053 - -
400613 2011 Bond Issuance - Consultant & Advertising Expense 152,454 - 130,112 130,112 2 2,342 - -
400615 Grasonville Community Center 50,000 - 50,000 50,000 - - -
400619 DNR Natural Filters 100,000 - 23,288 23,288 7 6,712 23,288 23,288
400635 Coastal Bays Grant - Town of Centreville 70,000 - 14,640 14,640 5 5,360 - -
400637 Coastal Bays Grant - Corsica River Conservancy 200,000 - 16,532 16,532 1 83,468 - -
Total General Government 11,561,084 8,499,365 663,462 9,162,827 2 ,398,257 1,851,885 139,477
PUBLIC SAFETY
400217 Transfer to VFDs 1,157,390 1,084,689 - 1,084,689 7 2,701 - -
400281 Detention Center Furniture & Carpet 30,000 - - - 3 0,000 - -
400313 County Wide Mapping - 911 815,530 794,469 - 794,469 2 1,061 - -
400499 Railroad Avenue Building Renovation 625,000 21,464 581,084 602,548 2 2,452 602,548 581,084
400525 Animal Services - Quarantine Facility 119,127 54,590 64,537 119,127 - 119,127 64,537
400535 CLS - DES Hanger Doors & Site Work 45,000 - 44,783 44,783 217 - 35,040
Total Public Safety 2,792,047 1,955,212 690,404 2,645,616 1 46,431 721,675 680,661
PUBLIC WORKS
400077 Wetlands Mitigation 216,560 142,998 9 ,931 152,929 6 3,631 - -
400079 Roof Repair / Replacement 454,647 452,586 - 452,586 2,061 - -
400083 CLS - Renovation/Transit Garage (See Transfers) 4,776,629 4,731,339 - 4,731,339 4 5,290 - -
400087 CLS - Fuel Depot Demolition/MTBE 198,774 198,774 - 198,774 - - -
400091 DPW - Fee In Lieu 20,000 20,000 - 20,000 - - -
400235 Solid Waste Capital Equipment 174,001 173,039 - 173,039 962 - -
400241 Cash Deposit Agreements 35,748 35,748 - 35,748 - - -
400471 Bio-Swale Drainage Ditch 75,000 7 ,763 7 ,008 14,771 6 0,229 14,771 7,008
400501 DPW Yard MTBE Remediation 200,000 - 19,889 19,889 1 80,111 - -
400509 Solid Waste Loader Replacement 63,626 - - - 6 3,626 - -
400521 County Complex Land 2,184,120 7 ,735 1,599,483 1,607,218 5 76,902 - 1,377,630
400541 Sudlersville Middle Infrastructure 873,017 219,583 251,246 470,829 4 02,188 249,484 45,619
400623 Energy Efficiency Upgrades 283,692 - - - 2 83,692 - -
400625 Coastal Bays - Health Dept. Parking 200,000 - 6 94 694 1 99,306 694 694
400629 Kirwan Creek - WMP IMPL 170,000 - 13,864 13,864 1 56,136 13,864 13,864
Total Public Works 9,925,814 5,989,565 1,902,115 7,891,680 2 ,034,134 278,813 1,444,815
SOCIAL SERVICES
400487 CLS - MTA Capital Grant Equipment 196,646 196,646 - 196,646 - - -
400511 Aging - Vehicle Replacement 35,000 - - - 3 5,000 - -
400531 CLS - Kramer Center Rain Garden 27,592 1 ,000 26,592 27,592 - - -
400601 ARRA Capital Grant Equipment 628,143 428,939 199,204 628,143 - - 199,204
Total Social Services 887,381 626,585 225,796 852,381 3 5,000 - 199,204
CONTINUED
- 140 -

QUEEN ANNE'S COUNTY MARYLAND
CAPITAL PROJECTS FUNDS
SCHEDULE OF APPROPRIATIONS AND EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
EXPENDITURES INCLUDED IN CAPITALIZED
TOTAL PRIOR CURRENT UNEXPENDED CONSTRUCTION CURRENT
PROJ # GENERAL CAPITAL PROJECTS: APPROPRIATION YEARS YEAR TOTAL APPROPRIATIONS IN PROGRESS YEAR
EDUCATION
700003 Chesapeake College Admin Bldg $ 798,485 $ 798,485 $ - $ 798,485 $ - $ - $ -
700171 Ches Coll Kent Humanities Bldg 685,295 624,195 61,100 685,295 - - -
700219 Ches Coll Learning Resource Center 108,188 108,188 - 108,188 - - -
Subtotal Chesapeake College 1,591,968 1,530,868 61,100 1,591,968 - - -
EDUCATION - CONTINUED
ALLOCATIONS TO COMPONENT UNIT -
BOARD OF EDUCATION
400543 Sudlersville Middle Infrastructure 519,083 6 ,307 512,776 519,083 - - -
700061 Matapeake Middle 16,909,456 16,830,904 7 ,367 16,838,271 7 1,185 - -
700089 CLS - Kent Island Elementary Renovation 10,262,322 10,257,725 4 ,597 10,262,322 - - -
700107 CLS - Schools - Carpet & Tile 270,000 240,513 29,487 270,000 - - -
700111 CLS - BOE Office Building Upgrade 7,100 7 ,100 - 7,100 - - -
700113 CLS - Schools - Painting 280,000 259,337 20,663 280,000 - - -
700115 CLS - Playfields - Church Hill & Kent Island Elementary 24,544 24,544 - 24,544 - - -
700117 Playground Repairs - Kent Island Elem School 140,660 104,677 35,983 140,660 - - -
700141 CLS - Acoustical Tiles 28,800 28,800 - 28,800 - - -
700151 Bayside Elementary HVAC 1,064,153 1,038,960 8 29 1,039,789 2 4,364 - -
700157 QACHS Field Upgrades 519,532 367,276 109,422 476,698 4 2,834 - -
700161 Financial Hardware System 60,000 50,501 6 ,149 56,650 3,350 - -
700165 Generator - BOE Bldg 50,000 1 ,275 47,970 49,245 755 - -
700167 CLS - Electronic Visitor Register 20,000 20,000 - 20,000 - - -
700169 New Sudlersville Middle School 28,585,930 2,667,827 6,177,805 8,845,632 19,740,298 - -
700177 BOE Security Entrance & Cameras 160,000 81,838 76,142 157,980 2,020 - -
700179 Centreville Middle Boiler 224,917 21,052 70,296 91,348 1 33,569 - -
700181 Bayside Elementary Parking Lot 150,000 - 116,205 116,205 3 3,795 - -
700183 Centreville Elementary - Resurface Playcourts 35,000 3 ,100 26,416 29,516 5,484 - -
700187 Kennard Elementary Addition 2,538,354 102,519 50,913 153,432 2 ,384,922 - -
700189 CLS - BOE - Slate Roof Repairs 82,991 6 ,291 76,700 82,991 - - -
700191 Carpet & Tile Replacement 80,000 62,791 17,209 80,000 - - -
700193 Security Entrance & Cameras 65,000 62,132 1 ,375 63,507 1,493 - -
700195 Equipment & Vehicles 700,000 661,564 34,060 695,624 4,376 - -
700201 CLS - KIHS Stage Curtain 11,150 10,550 6 00 11,150 - - -
700203 Textbooks 300,000 279,937 19,704 299,641 359 - -
700205 BOE Phone System 60,000 - 54,664 54,664 5,336 - -
700207 QACHS Bleachers 145,000 3 08 131,376 131,684 1 3,316 - -
700209 Energy Management System Upgrade 44,050 21,895 18,825 40,720 3,330 - -
700211 CLS - BOE Meeting Room Video System 2,115 8 40 1 ,275 2,115 - - -
700213 CLS - BOE Relocatables 218,000 118,310 99,690 218,000 - - -
700215 KIHS Roof Repairs 65,700 6 ,967 2 ,926 9,893 5 5,807 - -
700221 Warehouse Lot Paving 100,000 - - - 1 00,000 - -
700223 BOE Parking Lot Expansion 25,000 - - - 2 5,000 - -
700225 BOE Portables 67,149 - 62,464 62,464 4,685 - -
Subtotal Board of Education 63,816,006 33,345,840 7,813,888 41,159,728 22,656,278 - -
Total Education 65,407,974 34,876,708 7,874,988 42,751,696 22,656,278 - -
PARKS AND RECREATION
400215 Preventive Park Maintenance 770,480 669,883 92,809 762,692 7,788 - -
400303 CLS - Ferry Point Trail 158,361 156,629 1 ,732 158,361 - - 1,732
400305 White Marsh Park 2,360,763 2,150,345 178,337 2,328,682 3 2,081 2,328,682 178,337
400391 Cross County Connec Trail PS1 1,932,688 60,823 1 12 60,935 1 ,871,753 60,935 112
400393 Davidson Property Improvements 323,525 34,047 43,065 77,112 2 46,413 77,112 43,065
400459 CLS - Ferry Point/CEC Canal Bridge 146,350 144,303 - 144,303 2,047 - -
400513 Bay City/Matapeake Trail 30,000 - - - 3 0,000 - -
400519 Talisman/Kudner Improvements 6,855 - - - 6,855 - -
400529 Chesapeake Pool Improvements 100,000 69,421 7 ,935 77,356 2 2,644 - -
400607 Grasonville Tennis Courts 40,000 - - - 4 0,000 - -
400611 CLS - Mower Equipment 29,997 - 29,997 29,997 - - 29,997
400617 YMCA Feasibility Study 50,000 - 46,894 46,894 3,106 - -
400621 YMCA Fundraising Study 25,000 - - - 2 5,000 - -
400627 Coastal Bays - Bloomfield Parking 50,000 - - - 5 0,000 - -
400633 Bloomfield Info Kiosk 15,385 - 10,186 10,186 5,199 10,186 10,186
Total Parks and Recreation 6,039,404 3,285,451 411,067 3,696,518 2 ,342,886 2,476,915 263,429
CONSERVATION
400293 4-H Park Improvements 597,555 462,750 62,392 525,142 7 2,413 525,142 62,392
400553 Ag Preservation - Emerson Property 416,861 - - - 4 16,861 - -
400555 Ag Preservation - Frizz King Property 572,000 - 572,000 572,000 - - -
400571 Ag Preservation - Brown's Branch 968,166 - 968,166 968,166 - - -
400631 CREP Easements 1,425,079 - 1,405,171 1,405,171 1 9,908 716,951 716,951
Total Conservation 3,979,661 462,750 3,007,729 3,470,479 5 09,182 1,242,093 779,343
CONTINUED
- 141 -

QUEEN ANNE'S COUNTY MARYLAND
CAPITAL PROJECTS FUNDS
SCHEDULE OF APPROPRIATIONS AND EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
EXPENDITURES INCLUDED IN CAPITALIZED
TOTAL PRIOR CURRENT UNEXPENDED CONSTRUCTION CURRENT
PROJ # GENERAL CAPITAL PROJECTS: APPROPRIATION YEARS YEAR TOTAL APPROPRIATIONS IN PROGRESS YEAR
ECONOMIC/COMMUNITY DEVELOPMENT
400201 Land Sales Proceeds (See Transfers) $ 3 0,345 $ 30,345 $ - $ 3 0,345 $ - $ - $ -
400573 Housing - NCI - 107 Watkins (See Transfers) 2 30,159 198,882 18,018 2 16,900 13,259 - 1 8,018
400583 Matapeake Business Park 1 ,640,000 - 76,066 7 6,066 1,563,934 7 6,066 7 6,066
Subtotal Economic/Community Development 1 ,900,504 229,227 94,084 3 23,311 1,577,193 7 6,066 9 4,084
ECONOMIC/COMMUNITY DEVELOPMENT -
ALLOCATION TO COMPONENT UNIT - PHA
400207 Housing & Community Service Transfer (See Transfers) 1 00,000 100,000 - 1 00,000 - - -
400209 PHA Allocation 6 06,642 606,642 - 6 06,642 - - -
400485 Restricted Allocation-Scattered Site 1 00,000 100,000 - 1 00,000 - - -
Subtotal Allocation to Component Unit - PHA 8 06,642 806,642 - 8 06,642 - - -
Total Economic/Community Development 2 ,707,146 1,035,869 94,084 1 ,129,953 1,577,193 7 6,066 9 4,084
DEBT SERVICE
400613 2011 Bond Issuance Costs 1 29,689 - 129,671 1 29,671 18 - -
TRANSFERS TO OTHER FUNDS
400009 CLS-Finance System - to Sanitary District 1 ,719 1,719 - 1 ,719 - - -
400045 Land Preservation Transfers 4 05,000 405,000 - 4 05,000 - - -
400083 CLS - Renovation/Transit Garage - to Roads Cap Proj 4 8,300 48,300 - 4 8,300 - - -
400127 Public Landings Allocation 2 00,000 200,000 - 2 00,000 - - -
400167 Enterprise Transfer/Allocation 3 ,336,695 3,236,490 - 3 ,236,490 100,205 - -
400201 Land Sale Proceeds 1 25,000 125,000 - 1 25,000 - - -
400207 Housing & Comm Svc Transfer - to Housing Services 4 50,000 450,000 - 4 50,000 - - -
400213 Loan Fund Transfers 4 60,000 460,000 - 4 60,000 - - -
400217 Transfer to VFD's 1 62,410 162,410 - 1 62,410 - - -
400573 Transfer to Housing & Community Services Fund 2 14,741 - 214,741 2 14,741 - - -
400551 Transfer to/from General Fund 8 ,310,000 8,310,000 - 8 ,310,000 - - -
400561 Transfer to General Fund - Courthouse Property 8 49,467 - 849,467 8 49,467 - - -
400469 Sanitary District Transfer/Allocation 2 33,000 233,000 - 2 33,000 - - -
400483 2009 Bond Issuance - Transfers 6 16,343 - 616,343 6 16,343 - - -
Total Transfers 1 5,412,675 13,631,919 1,680,551 1 5,312,470 100,205 - -
Total General Capital Projects $ 1 18,842,875 $ 70,363,424 $ 16,679,867 $ 8 7,043,291 $ 31,799,584 $ 6 ,647,447 $ 3 ,601,013
PROJ # ROADS BOARD CAPITAL PROJECTS:
PUBLIC WORKS
820005 Asphalt Overlays - Upgrade $ 3 ,030,336 $ 986,282 $ - $ 9 86,282 $ 2,044,054 $ - $ -
820151 Island Creek Road Bridge 3 ,105,000 71,261 2,157 7 3,418 3,031,582 7 3,418 2 ,157
820221 Taylor Mill Road Bridge 1 97,500 450 - 4 50 197,050 4 50 -
820243 CLS - DPW Route 301 Yard Paving 3 88,669 - 388,669 3 88,669 - - -
820251 CLS-Traffic Barrier Installation 1 92,383 947 191,436 1 92,383 - - 1 91,436
820271 Tanyard Road Improvements 6 89,302 350 686,002 6 86,352 2,950 6 86,352 6 86,002
820291 Carmichael Road Improvements - 6,094 713 6 ,807 (6,807) 6 ,807 7 13
820295 Fogwell Road Improvements 5 3,215 - - - 53,215 - -
820297 Rt 18-552 Improvements 1 ,574,248 167,472 65,777 2 33,249 1,340,999 2 33,249 6 5,777
820301 Heron View 2 8,131 - 28,131 2 8,131 - - 2 8,131
Total Public Works - Roads 9 ,258,784 1,232,856 1,362,885 2 ,595,741 6,663,043 1 ,000,276 9 74,216
TRANSFERS TO OTHER FUNDS
820187 To Roads Operating 1 ,841,877 1,019,487 - 1 ,019,487 822,390 - -
820209 County Wide Mapping II 8 0,000 70,000 10,000 8 0,000 - - -
820299 To Roads Operating 5 98,024 - - - 598,024 - -
Total Transfers to Other Funds 2 ,519,901 1,089,487 10,000 1 ,099,487 1,420,414 - -
Total Roads Board Capital Projects $ 1 1,778,685 $ 2,322,343 $ 1,372,885 $ 3 ,695,228 $ 8,083,457 $ 1 ,000,276 $ 9 74,216
Total General and Roads Capital Projects $ 1 30,621,560 $ 72,685,767 $ 18,052,752 $ 9 0,738,519 $ 39,883,041 $ 7 ,647,723 $ 4 ,575,229
Force in Kind Capital Projects reported in
non-capital projects Funds and added to CIP
400304 CLS - Ferry Point Project FIC $ - $ 14,160 $ 2,863 $ 1 7,023 $ (17,023) $ - $ 2 ,863
400306 White March Park FIC - 370,617 37,192 4 07,809 (407,809) 4 07,809 3 7,192
400392 Cross County Conn II FIC - 15,666 12,349 2 8,015 (28,015) 2 6,092 1 2,349
400394 Davidson Property FIC - 8,348 35,021 4 3,369 (43,369) 4 3,369 3 5,021
400460 CLS - Ferry Point/CEC Canal Bridge - 62,756 - 6 2,756 (62,756) - -
400472 Bio Swale Drainage Ditch - FIC - 16,214 9,219 2 5,433 (25,433) 2 5,433 9 ,219
400612 CLS - Mower Equipment - FIC - - 7,374 7 ,374 (7,374) - -
400626 Coastal Bays Health Dept Parking - FIC - - 3,981 3 ,981 (3,981) 3 ,981 3 ,981
400630 Kirwan Creek WMP IMPL - FIC - - 14,716 1 4,716 (14,716) 1 4,716 1 4,716
400634 Bloomfield Kiosk - FIC - - 1,905 1 ,905 (1,905) 1 ,905 1 ,905
$ - $ 487,761 $ 124,620 $ 6 12,381 $ (612,381) $ 5 23,305 $ 1 17,246
Total Construction in Progress and Capitalized Current Year $ 8 ,171,028 $ 4 ,692,475
- 142 -

QUEEN ANNE'S COUNTY, MARYLAND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
SCHOOL IMPACT FEES CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2011
VARIANCE
ORIGINAL FINAL POSITIVE
BUDGET BUDGET ACTUAL (NEGATIVE)
REVENUES
Charges for Current Services $ 600,000 $ 600,000 $ 755,443 $ 1 55,443
Investment Income 20,000 20,000 220 (19,780)
Total Revenues 620,000 620,000 755,663 135,663
EXPENDITURES
Total Expenditures - - - -
Excess of Revenues Over Expenditures 620,000 620,000 755,663 135,663
OTHER FINANCING (USES)
Transfers Out (1,408,120) (1,408,120) (1,408,120) -
Total Other Financing (Uses) (1,408,120) (1,408,120) (1,408,120) -
Net (Decrease) in Fund Balances $ (788,120) $ (788,120) (652,457) $ 1 35,663
Fund Balances, July 1 1,068,666
Fund Balances, June 30 $ 416,209
- 143 -

- 144 -

NON-MAJOR ENTERPRISE FUNDS
Non-Major Enterprise funds account for activities which are commercial in nature and are
primarily or partially intended to be self-supporting. Each fund sets its rates and service charges
at a level sufficient to: (1) meet all of its operating expenses; (2) provide for depreciation from
wear and obsolescence; and (3) to the extent that funds are not borrowed, finance the cost of
expansion of physical facilities. For Queen Anne’s County, the following enterprise funds are not
meant to be fully self-supporting.
- 145 -

NON-MAJOR ENTERPRISE FUNDS
Non-major enterprise funds include the following funds:
Public Marinas – This fund accounts for operation, maintenance, and major repairs of
public marinas. For a fee, the general public has access to these marinas for temporary
mooring.
Parks and Recreation:
Blue Heron Golf Course – This fund accounts for operation and maintenance of an 18-
hole public golf course that is owned and operated by the County.
Recreation Programs – This fund accounts for self-supporting recreation programs
wherein user charges cover the majority of operating expenditures.
Public Landings – This fund accounts for operation, maintenance, and major repairs of
public landings and bulkheads. For a fee, the general public has access to these
landings to launch small craft into the many waterways that surround the County.
Property Management – This fund accounts for the operation, maintenance and major
repairs associated with the County’s many parks and public facilities.
- 147 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2011
GOLF RECREATION PUBLIC
ASSETS COURSE PROGRAMS LANDINGS
Current Assets
Equity in Pooled Cash $ - $ 3 85,587 $ 1 36,883
Accounts Receivable (Net) - - 9 ,127
Due from Other Funds - 2 0,000 -
Due from Other Governments - - 9 5,280
Bond Interest Reimbursement Receivable - Build America Bond - - 1 62
Inventories 8 ,737 - -
Total Current Assets 8 ,737 4 05,587 2 41,452
Capital Assets
Land, Improved and Unimproved 1 ,904,522 - 5 59,862
Buildings and Improvements to Buildings 3 13,443 - -
Improvements Other Than Buildings 1 22,268 - 2 ,453,629
Automotive Equipment 2 2,835 - 1 0,880
Equipment 5 80,346 - 5 6,814
Furniture and Fixtures - 2 4,023 4 ,979
Construction in Progress - - 1 27,040
Capital Assets before Depreciation 2 ,943,414 2 4,023 3 ,213,204
Less Accumulated Depreciation (600,237) (15,533) (294,822)
Total Capital Assets, Net of Accumulated
Depreciation 2 ,343,177 8 ,490 2 ,918,382
Total Noncurrent Assets 2 ,343,177 8 ,490 2 ,918,382
Total Assets 2 ,351,914 4 14,077 3 ,159,834
LIABILITIES
Current Liabilities
Accounts Payable 1 0,799 2 2,013 1 1,485
Accrued Interest Payable 5 ,291 - 4 62
Escrow Deposits - 3 ,297 -
Due to Other Funds 2 79,425 - -
Unearned Revenue 1 ,993 - 6 98
Current Portion of Compensated Absences 5 ,001 1 8,429 2 1,801
Current Portion of Bonds/Notes Payable 7 6,763 - 1 ,625
Total Current Liabilities 3 79,272 4 3,739 3 6,071
Noncurrent Liabilities
Compensated Absences 2 ,834 1 0,445 1 2,357
Other Post-Employment Benefit Obligation - 1 77,440 7 8,513
Bonds/Notes Payable 6 60,181 - 3 8,166
Total Noncurrent Liabilities 6 63,015 1 87,885 1 29,036
Total Liabilities 1 ,042,287 2 31,624 1 65,107
NET ASSETS
Invested in Capital Assets, Net of Related Debt 1 ,606,233 8 ,490 2 ,878,591
Restricted for:
Donations 4 44 - -
Unrestricted (297,050) 1 73,963 1 16,136
Total Net Assets $ 1 ,309,627 $ 1 82,453 $ 2 ,994,727
- 148 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2011
(CONTINUED)
TOTAL TOTAL
PROPERTY PARKS AND PUBLIC NON-MAJOR
MANAGEMENT RECREATION MARINAS ENTERPRISE
$ - $ 522,470 $ 316,989 $ 839,459
1,251 10,378 - 10,378
- 20,000 - 20,000
647 95,927 - 95,927
- 162 3,622 3,784
- 8,737 - 8,737
1,898 657,674 320,611 978,285
49,335 2,513,719 209,248 2,722,967
867,429 1,180,872 - 1,180,872
99,013 2,674,910 401,542 3,076,452
49,730 83,445 - 83,445
154,359 791,519 - 791,519
1,748 30,750 - 30,750
- 127,040 2,150,839 2,277,879
1,221,614 7,402,255 2,761,629 10,163,884
( 399,754) (1,310,346) ( 74,045) (1,384,391)
821,860 6,091,909 2,687,584 8,779,493
821,860 6,091,909 2,687,584 8,779,493
823,758 6,749,583 3,008,195 9,757,778
41,276 85,573 1,010 86,583
- 5,753 11,046 16,799
7,650 10,947 - 10,947
114,204 393,629 - 393,629
25,000 27,691 - 27,691
- 45,231 - 45,231
- 78,388 46,365 124,753
188,130 647,212 58,421 705,633
- 25,636 - 25,636
244,658 500,611 5,676 506,287
- 698,347 888,536 1,586,883
244,658 1,224,594 894,212 2,118,806
432,788 1,871,806 952,633 2,824,439
821,860 5,315,174 1,752,683 7,067,857
- 444 - 444
( 430,890) (437,841) 302,879 (134,962)
$ 390,970 $ 4,877,777 $ 2,055,562 $ 6,933,339
- 149 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
GOLF RECREATION PUBLIC
COURSE PROGRAMS LANDINGS
OPERATING REVENUES
Charges for Services $ 295,587 $ 370,149 $ 327,239
Intergovernmental - 5,261 18,308
Bond Interest Reimbursement - Build America Bond - - 645
Material Sales 43,644 - -
Miscellaneous Revenues 1,813 21,809 30,030
Total Operating Revenues 341,044 397,219 376,222
OPERATING EXPENSES
Cost of Sales and Services
Parks and Recreation 368,173 837,518 345,765
Public Marinas - - -
Total Cost of Sales and Services 368,173 837,518 345,765
Other Post-Employment Benefit Contributions - 87,131 28,989
Depreciation 45,364 2,403 46,113
Total Operating Expenses 413,537 927,052 420,867
Operating Income (Loss) ( 72,493) (529,833) (44,645)
NON-OPERATING (EXPENSES)
Interest Expense ( 43,797) - -
Loss on Disposal of Capital Assets ( 622) - (11,044)
Total Non-Operating (Expenses) ( 44,419) - (11,044)
Gain (Loss) Before Contributions and Transfers (116,912) (529,833) (55,689)
Capital Contributions, Fees and Grants 15,747 - 180,740
Transfers In - 443,110 -
Change in Net Assets (101,165) (86,723) 125,051
Total Net Assets - Beginning of Year 1,410,792 269,176 2,869,676
Total Net Assets - End of Year $ 1,309,627 $ 182,453 $ 2,994,727
- 150 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
TOTAL TOTAL
PROPERTY PARKS AND PUBLIC NON-MAJOR
MANAGEMENT RECREATION MARINAS ENTERPRISE
$ 575,252 $ 1,568,227 $ 84,987 $ 1,653,214
15,358 38,927 - 38,927
- 645 16,241 16,886
9,552 53,196 - 53,196
17,274 70,926 143 71,069
617,436 1,731,921 101,371 1,833,292
814,364 2,365,820 - 2,365,820
- - 55,504 55,504
814,364 2,365,820 55,504 2,421,324
108,232 224,352 3,860 228,212
51,787 145,667 8,031 153,698
974,383 2,735,839 67,395 2,803,234
(356,947) (1,003,918) 33,976 (969,942)
- (43,797) - (43,797)
(1,308,205) (1,319,871) - (1,319,871)
(1,308,205) (1,363,668) - (1,363,668)
(1,665,152) (2,367,586) 33,976 (2,333,610)
- 196,487 588,326 784,813
25,000 468,110 - 468,110
(1,640,152) (1,702,989) 622,302 (1,080,687)
2,031,122 6,580,766 1,433,260 8,014,026
$ 390,970 $ 4,877,777 $ 2,055,562 $ 6,933,339
- 151 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
GOLF RECREATION PUBLIC
COURSE PROGRAMS LANDINGS
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 2 95,056 $ 3 63,913 $ 318,386
Receipts from other operating revenues 45,457 27,070 63,989
Receipts from Build America Bond interest reimbursement - - 602
Payments to suppliers (322,368) (316,296) (71,381)
Payments to employees and on behalf of employees (56,596) (497,458) (277,002)
Net Cash Provided (Used) by Operating Activities (38,451) (422,771) 34,594
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds - 4 43,110 -
Loan proceeds from interfund loans 2 79,425 10,000 -
Principal paid on interfund loans (125,147) - -
Net Cash Provided by Noncapital Financing Activities 1 54,278 4 53,110 -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from the disposition of capital assets - - -
Receipts from capital grants and contributions 15,747 - 180,740
Principal paid on capital debt (75,000) - (1,228)
Receipts from bonds, including premiums, net of issuance costs - - 11,073
Interest paid on capital debt (41,078) - 121
Acquisition and Construction of Capital Assets (15,496) - (184,499)
Net Cash Provided (Used) by Capital and Related Financing Activities (115,827) - 6,207
CASH FLOWS FROM INVESTING ACTIVITIES
Net Cash Provided (Used) by Investing Activities - - -
Net increase (decrease) in cash and cash equivalents - 30,339 40,801
Balances - Beginning of year - 3 55,248 96,082
Balances - End of year $ - $ 3 85,587 $ 136,883
Reconciliation of operating income (loss) to net cash
provided by operating activities
Operating income (loss) $ (72,493) $ (529,833) $ (44,645)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation 45,364 2,403 46,113
Changes in assets and liabilities:
Accounts receivable, net - - (8,647)
Operating grants receivable - - 15,651
Build America Bonds Interest receivable - - (43)
Inventories and Prepaid Expenses (2,314) 4,950 -
Vendor accounts payable (15,988) (10,060) (3,791)
Compensated absences 7,511 28,874 1,174
Other Post-Employment Benefit Obligation - 87,131 28,988
Escrow deposits payable - (961) -
Deferred revenue collected in advance (531) (5,275) (206)
Net Cash Provided (Used) by Operating Activities $ (38,451) $ (422,771) $ 34,594
- 152 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
TOTAL TOTAL
PROPERTY PARKS AND PUBLIC NON-MAJOR
MANAGEMENT RECREATION MARINAS ENTERPRISE
$ 602,025 $ 1,579,380 $ 8 4,987 $ 1 ,664,367
41,537 178,053 143 1 78,196
- 602 13,910 14,512
( 337,634) (1,047,679) (202,925) (1,250,604)
( 460,339) (1,291,395) (30,917) (1,322,312)
( 154,411) (581,039) (134,802) (715,841)
25,000 468,110 - 4 68,110
114,204 403,629 - 4 03,629
- (125,147) - (125,147)
139,204 746,592 - 7 46,592
15,000 15,000 - 15,000
- 196,487 9 32,299 1 ,128,786
- (76,228) (34,289) (110,517)
- 11,073 5 94,420 6 05,493
- (40,957) (41,262) (82,219)
(8,519) (208,514) (1,053,629) (1,262,143)
6 ,481 (103,139) 3 97,539 2 94,400
- - - -
(8,726) 62,414 2 62,737 3 25,151
8 ,726 460,056 54,252 5 14,308
$ - $ 522,470 $ 3 16,989 $ 8 39,459
$ ( 356,947) $ (1,003,918) $ 3 3,976 $ (969,942)
51,787 145,667 8,031 1 53,698
7 73 (7,874) - (7,874)
(647) 15,004 - 15,004
- (43) (2,331) (2,374)
- 2,636 6,738 9,374
16,391 (13,448) (185,076) (198,524)
- 37,559 - 37,559
108,232 224,351 3,860 2 28,211
1 ,000 39 - 39
25,000 18,988 - 18,988
$ ( 154,411) $ (581,039) $ (134,802) $ (715,841)
- 153 -

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.
- 155 -

OTHER POST-EMPLOYMENT BENEFIT (OPEB) TRUST FUND
The County established a Trust entity, entitled “Other Post-Employment Benefit Trust –
County Commissioners of Queen Anne's County, County Commissioners of Kent
County, and Participating Agencies” (OPEB Trust), to accumulate resources and
account for and report retiree benefit plans for the participating agencies.
Participating agencies in the OPEB Trust Fund are as follows:
Queen Anne's County & Public Housing Authority
Queen Anne's County Board of Education
Queen Anne’s County Library
Kent County
AGENCY FUNDS
Agency funds are as follows:
Tax Ditch – This fund accounts for special taxing district revenues that are used to
maintain drainage ditches located in parts of the County.
Zoning Deposits – This fund accounts for performance deposits required under various
sections of the Zoning Ordinance.
State and Town Tax Collections – This fund accounts for collections received by the
County on behalf of the State of Maryland and incorporated towns located within the
County. These taxes are collected by the County along with County taxes and are then
remitted to the proper jurisdiction.
Motor Vehicle Administration Deposits – This fund accounts for funds collected by
the County for State vehicle registration fees.
Mid-shore Regional Recycling Program (MRRP) – This fund accounts for activities of
the regional recycling effort that is supported by four counties, including Queen Anne’s
County.
Escheat – Abandoned Property – This fund accounts for stale-dated County payroll
and disbursements checks that are voided by the County 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.
- 157 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
JUNE 30, 2011
QUEEN ANNE'S QUEEN ANNE'S TOTAL
COUNTY COUNTY QUEEN ANNE'S OPEB
QUEEN ANNE'S PUBLIC HOUSING BOARD OF COUNTY KENT TRUST
COUNTY AUTHORITY EDUCATION LIBRARY COUNTY FUND
ASSETS
Cash and Cash Equivalents $ 4 81 $ 7 6,372 $ 5 02,358 $ 3 0,142 $ 1 55,731 $ 765,084
Total Assets 4 81 7 6,372 5 02,358 3 0,142 1 55,731 765,084
LIABILITIES
Due to Other Governments - - - - 1 55,731 155,731
Total Liabilities - - - - 1 55,731 155,731
NET ASSETS HELD IN TRUST $ 4 81 $ 7 6,372 $ 5 02,358 $ 3 0,142 $ - $ 609,353
- 158 -

QUEEN ANNE'S COUNTY, MARYLAND
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2011
QUEEN ANNE'S QUEEN ANNE'S TOTAL
COUNTY COUNTY QUEEN ANNE'S OPEB
QUEEN ANNE'S PUBLIC HOUSING BOARD OF COUNTY TRUST
COUNTY AUTHORITY EDUCATION LIBRARY FUND
ADDITIONS
Contributions
Employers $ 831,222 $ 69,068 $ 1 ,276,130 $ 12,302 $ 2,188,722
Members 174,196 3,364 5 95,319 7,318 780,197
Total Contributions 1,005,418 72,432 1 ,871,449 19,620 2,968,919
Investment Income 4 81 1 00 1 ,089 66 1 ,736
Total Additions 1,005,899 72,532 1 ,872,538 19,686 2,970,655
DEDUCTIONS
Claims Paid 1,494,913 7,934 1 ,871,449 19,620 3,393,916
Change in Assets ( 489,014) 64,598 1 ,089 66 (423,261)
NET ASSETS HELD IN TRUST
Net Assets - Beginning of Year 489,495 11,774 501,269 30,076 1,032,614
Net Assets - End of Year $ 481 $ 76,372 $ 502,358 $ 30,142 $ 609,353
- 159 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF AGENCY FUNDS ASSETS AND LIABILITIES
AGENCY FUNDS
JUNE 30, 2011
STATE MOTOR
TAX & TOWN VEHICLE MIDSHORE ESCHEAT - TOTAL
DITCH ZONING TAX ADMIN REGIONAL ABANDONED AGENCY
FUND DEPOSITS COLLECTIONS DEPOSITS RECYCLING PROPERTY FUNDS
ASSETS
Cash and Cash Equivalents $ 121,288 $ 1 87,652 $ 1 ,575 $ 5,414 $ 6,761 $ 4 ,334 $ 3 27,024
Miscellaneous Receivables - - - - 124,671 - 1 24,671
Total Assets $ 121,288 $ 1 87,652 $ 1 ,575 $ 5,414 $ 131,432 $ 4 ,334 $ 4 51,695
LIABILITIES
Due to Other Governments $ - $ - $ 1 ,575 $ 5,414 $ 131,432 $ 4 ,334 $ 1 42,755
Deposits and Escrows 121,288 1 87,652 - - - - 3 08,940
Total Liabilities $ 121,288 $ 1 87,652 $ 1 ,575 $ 5,414 $ 131,432 $ 4 ,334 $ 4 51,695
- 161 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN AGENCY FUNDS ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
Miscellaneous Total
Cash Receivables Assets
TAX DITCH FUND
Balance 7-1-10 $ 1 38,243 $ - $ 138,243
Additions 20,170 - 20,170
Deductions (37,125) - ( 37,125)
Balance 6-30-11 $ 1 21,288 $ - $ 121,288
ZONING DEPOSITS
Balance 7-1-10 $ 1 66,024 $ - $ 166,024
Additions 45,083 - 45,083
Deductions (23,455) - ( 23,455)
Balance 6-30-11 $ 1 87,652 $ - $ 187,652
STATE AND TOWN TAX COLLECTIONS
Balance 7-1-10 $ 7 8,034 $ - $ 78,034
Additions 12,652,367 - 12,652,367
Deductions (12,728,826) - (12,728,826)
Balance 6-30-11 $ 1,575 $ - $ 1,575
MOTOR VEHICLE ADMIN DEPOSITS
Balance 7-1-10 $ 7,218 $ - $ 7,218
Additions 3 76,265 - 376,265
Deductions (378,069) - (378,069)
Balance 6-30-11 $ 5,414 $ - $ 5,414
MIDSHORE REGIONAL RECYCLING
Balance 7-1-10 $ 2 6,635 $ 2 6,149 $ 52,784
Additions 9 18,093 1 24,671 1,042,764
Deductions (937,967) (26,149) (964,116)
Balance 6-30-11 $ 6,761 $ 1 24,671 $ 131,432
ESCHEAT - ABANDONED PROPERTY
Balance 7-1-10 $ 1,302 $ - $ 1,302
Additions 5,783 - 5,783
Deductions (2,751) - ( 2,751)
Balance 6-30-11 $ 4,334 $ - $ 4,334
TOTALS - ALL AGENCY FUNDS
Balance 7-1-10 $ 4 17,456 $ 2 6,149 $ 443,605
Additions 14,017,761 1 24,671 14,142,432
Deductions (14,108,193) (26,149) (14,134,342)
Balance 6-30-11 $ 3 27,024 $ 1 24,671 $ 451,695
- 162 -

QUEEN ANNE'S COUNTY, MARYLAND
STATEMENT OF CHANGES IN AGENCY FUNDS ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
(CONTINUED)
Due to
Other Escrow Total
Governments Deposits Liabilities
$ - $ 1 38,243 $ 138,243
- 20,170 20,170
- (37,125) (37,125)
$ - $ 1 21,288 $ 121,288
$ - $ 1 66,024 $ 166,024
- 45,083 45,083
- (23,455) (23,455)
$ - $ 1 87,652 $ 187,652
$ 78,034 $ - $ 78,034
12,652,367 - 12,652,367
(12,728,826) - (12,728,826)
$ 1,575 $ - $ 1,575
$ 7,218 $ - $ 7,218
368,802 - 368,802
(370,606) - (370,606)
$ 5,414 $ - $ 5,414
$ 52,784 $ - $ 52,784
493,591 - 493,591
(414,943) - (414,943)
$ 131,432 $ - $ 131,432
$ 1,026 $ 276 $ 1,302
6,059 - 6,059
(2,751) (276) (3,027)
$ 4,334 $ - $ 4,334
$ 139,062 $ 3 04,543 $ 443,605
13,520,819 65,253 13,586,072
(13,517,126) (60,856) (13,577,982)
$ 142,755 $ 3 08,940 $ 451,695
- 163 -

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.
- 165 -

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
COMBINING BALANCE SHEETS
BY GRANTOR
JUNE 30, 2011 (with Summarized Totals as of June 30, 2010)
Fed/State Federal
GOCCP Family State State
Admin GOC Support Ctr CSAFE OTHER
ASSETS
Cash and cash equivalents $ 64,191 $ 205,985 $ 4,131 $ - $ 33,908
Accounts receivable - - - - -
Due from State governmental agencies 11,050 86,764 - 8,411 -
Due from Federal governmental agencies - 162,391 - - -
Total Assets $ 75,241 $ 455,140 $ 4,131 $ 8,411 $ 33,908
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued expenditures $ 5,507 $ 184,797 $ - $ - $ -
Due to other funds - - - 8,411 -
Due to State governmental agencies 2,175 267,738 4,131 - 33,908
Total Liabilities 7,682 452,535 4,131 8,411 33,908
FUND BALANCES
Restricted - - - - -
Assigned 67,559 2,605 - - -
Total Fund Balances 67,559 2,605 - - -
Total Liabilities and Fund Balances $ 75,241 $ 455,140 $ 4,131 $ 8,411 $ 33,908
- 166 -

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
COMBINING BALANCE SHEETS
BY GRANTOR
JUNE 30, 2011 (with Summarized Totals as of June 30, 2010)
(CONTINUED)
Total Returned 2010
Community Reinvestment 2011 Summarized
Partnerships Fund Total Total
$ 308,215 $ 5,405 $ 313,620 $ 7 47,946
- - - 1,990
106,225 - 106,225 165,123
162,391 - 162,391 56,273
$ 576,831 $ 5,405 $ 582,236 $ 9 71,332
$ 190,304 $ - $ 190,304 $ 2 95,017
8,411 - 8,411 10,785
307,952 - 307,952 590,006
506,667 - 506,667 895,808
- - - 1,050
70,164 5,405 75,569 74,474
70,164 5,405 75,569 75,524
$ 576,831 $ 5,405 $ 582,236 $ 9 71,332
- 167 -

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, 2011 (with Summarized Totals for the Year Ended June 30, 2010)
Federal/State GOCCP/GOC
Administrative Healthy
Operating Fund CASA Resource Chesapeake Fam/Home Family
Total Start Promotion Helps Visiting Navigators
REVENUES
CPA
Intergovernmental
GOC $ 6 3,337 $ 5 9,658 $ 9,509 $ 145,560 $ 52,489 $ 168,752
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - 5 1,505 - - - -
Federal SAMHSA Drug-Free Communities - - - - - -
Federal MSDE Healthy Families - - - - 296,372 -
GOC - non-CPA - - - - - -
State GOCCP - non-CPA - 6 ,704 - - - -
Other - - - - - -
Investment Income - - - - - -
Earned Reinvestment Donations - - - - - -
Miscellaneous 4 7,075 - - - - -
Subtotal Non-CPA 4 7,075 5 8,209 - - 296,372 -
Total Revenues 1 10,412 1 17,867 9,509 145,560 348,861 168,752
EXPENDITURES
CPA
Program Contracted Services - 5 9,658 9,509 145,560 - 168,752
Other Expenditures
Salaries 6 0,540 - - - - -
Fringe Benefit Costs 2 ,797 - - - - -
Consultants - - - - - -
Equipment Rental - - - - - -
Postage - - - - - -
Office Supplies - - - - - -
Equipment Operation - - - - - -
Business Travel - - - - - -
Meetings & Conferences - - - - - -
Advertising - - - - - -
Marketing/Promotions - - - - - -
Communications - - - - - -
Utilities - - - - - -
Rent - - - - - -
Other Charges - - - - 52,489 -
Subtotal CPA Expenditures 6 3,337 5 9,658 9,509 145,560 52,489 168,752
Non-CPA
Program Contracted Services - 5 6,494 - - 296,372 -
Other Expenditures
Salaries 1 26,576 1 ,403 - - - -
Fringe Benefit Costs 7 9,883 3 12 - - - -
Auditing 1 ,731 - - - - -
Consultants 1 5,000 - - - - -
Professional Groups 5 0 - - - - -
Equipment Rental 3 ,198 - - - - -
Other Contracted Services 5 ,286 - - - - -
Postage 7 90 - - - - -
Office Supplies 2 ,688 - - - - -
Equipment Operation 2 05 - - - - -
Business Travel 2 15 - - - - -
Meetings & Conferences - - - - - -
Training - - - - - -
Board's Expenditures 1 4,146 - - - - -
Advertising 2 11 - - - - -
Marketing/Promotions - - - - - -
Communications 1 ,523 - - - - -
Utilities 3 ,332 - - - - -
Rent - - - - - -
Other Charges - - - - - -
Subtotal Non-CPA Expenditures 2 54,834 5 8,209 - - 296,372 -
Total Expenditures 3 18,171 1 17,867 9,509 145,560 348,861 168,752
Excess of Revenues Over (Under) Expenditures (207,759) - - - - -
OTHER FINANCING SOURCES (USES)
Transfers In within Partnerships 3 ,490 - - - - -
Transfers (Out) within Partnerships - - - - - -
Transfers In (Out) for
Program Contracted Services - In 2 04,269 - - - - -
Program Contracted Services - Out - - - - - -
Other Financing Sources (Uses) 2 07,759 - - - - -
Net Increase (Decrease) in Fund Balances $ - $ - $ - $ - $ - $ -
- 168 -

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, 2011 (with Summarized Totals for the Year Ended June 30, 2010)
(CONTINUED)
Federal/State GOCCP/GOC
MD Underage GOCCP/GOC
After School Character Teen Drinking Operating Fund
Opportunity Counts Court Campaign Total
$ 52,244 $ 28,352 $ - $ - $ 516,564
- - 20,265 23,833 95,603
- - - - -
- - - - 296,372
- - - - -
- - - - 6,704
- - - - -
- - - - -
- 1,000 - - 1,000
- - - - -
- 1,000 20,265 23,833 399,679
52,244 29,352 20,265 23,833 916,243
52,244 - - - 435,723
- 20,496 - - 20,496
- 3,856 - - 3,856
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- 4,000 - - 4,000
- - - - -
- - - - -
- - - - -
- 1,000 - - 53,489
52,244 29,352 - - 517,564
99,999 - 16,202 2,321 471,388
- - 2,134 13,071 16,608
- - 603 1,651 2,566
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - 3,300 3,300
- - - - -
- - - - -
- - - - -
- - 1,325 - 1,325
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
99,999 - 20,264 20,343 495,187
152,243 29,352 20,264 20,343 1,012,751
(99,999) - 1 3,490 (96,508)
- - - - -
- - - (3,490) (3,490)
99,999 - - - 99,999
- - - - -
99,999 - - (3,490) 96,509
$ - $ - $ 1 $ - $ 1
CONTINUED
- 169 -

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BY COMMUNITY PARTNERSHIP AGREEMENTS (CPA) and NON-COMMUNITY PARTNERSHIP AGREEMENTS (NON-CPA)
FOR THE YEAR ENDED JUNE 30, 2011 (with Summarized Totals for the Year Ended June 30, 2010)
(CONTINUED)
Drug Free
Community CSAFE
Operating Fund Community All Programs
Total Policing Subtotal
REVENUES
CPA
Intergovernmental
GOC $ - $ - $ 579,901
Non-CPA
Intergovernmental
Federal GOCCP Youth Strategies - - 95,603
Federal SAMHSA Drug-Free Communities 15,400 - 15,400
Federal MSDE Healthy Families - - 296,372
GOC - non-CPA - - -
State GOCCP - non-CPA - - 6,704
Other - 16,995 16,995
Investment Income - - -
Earned Reinvestment Donations - - 1,000
Miscellaneous - - 47,075
Subtotal Non-CPA 15,400 16,995 479,149
Total Revenues 15,400 16,995 1,059,050
EXPENDITURES
CPA
Program Contracted Services - - 435,723
Other Expenditures
Salaries - - 81,036
Fringe Benefit Costs - - 6,653
Consultants - - -
Equipment Rental - - -
Postage - - -
Office Supplies - - -
Equipment Operation - - -
Business Travel - - -
Meetings & Conferences - - -
Advertising - - -
Marketing/Promotions - - 4,000
Communications - - -
Utilities - - -
Rent - - -
Other Charges - - 53,489
Subtotal CPA Expenditures - - 580,901
Non-CPA
Program Contracted Services 9,823 - 481,211
Other Expenditures
Salaries 3,857 - 147,041
Fringe Benefit Costs 1,720 - 84,169
Auditing - - 1,731
Consultants - - 15,000
Professional Groups - - 50
Equipment Rental - - 3,198
Other Contracted Services - - 5,286
Postage - - 790
Office Supplies - - 5,988
Equipment Operation - - 205
Business Travel - - 215
Meetings & Conferences - - -
Training - - 1,325
Board's Expenditures - - 14,146
Advertising - - 211
Marketing/Promotions - - -
Communications - - 1,523
Utilities - - 3,332
Rent - - -
Other Charges - - -
Subtotal Non-CPA Expenditures 15,400 - 765,421
Total Expenditures 15,400 - 1,346,322
Excess of Revenues Over (Under) Expenditures - 16,995 ( 287,272)
OTHER FINANCING SOURCES (USES)
Transfers In within Partnerships - - 3,490
Transfers (Out) within Partnerships - - ( 3,490)
Transfers In (Out) for
Program Contracted Services - In - - 304,268
Program Contracted Services - Out - (16,995) ( 16,995)
Other Financing Sources (Uses) - (16,995) 287,273
Net Increase (Decrease) in Fund Balances $ - $ - 1
Fund Balances, July 1 70,163
Fund Balances, June 30 $ 70,164
CONTINUED
- 170 -

QUEEN ANNE'S COUNTY
COMMUNITY PARTNERSHIPS FOR CHILDREN SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BY COMMUNITY PARTNERSHIP AGREEMENTS (CPA) and NON-COMMUNITY PARTNERSHIP AGREEMENTS (NON-CPA)
FOR THE YEAR ENDED JUNE 30, 2011 (with Summarized Totals for the Year Ended June 30, 2010)
(CONTINUED)
State Federal Total
State GOC GOCCP GOCCP Federal Community Returned 2010
CPA Non-CPA Non-CPA Youth Drug Free Federal Partnerships Reinvestment 2011 Summarized
Subtotal Subtotal Subtotal Strategies Community MSDE Other Operating Funds Fund Total Total
$ 579,901 $ - $ - $ - $ - $ - $ - $ 579,901 $ - $ 579,901 $ 858,005
- - 44,098 51,505 - - - 95,603 - 95,603 49,108
- - - - 1 5,400 - - 15,400 - 15,400 53,317
- - - - - 2 96,372 - 296,372 - 296,372 296,372
- - - - - - - - - - 250,460
- - 6,704 - - - - 6,704 - 6,704 51,230
- - - - - - 16,995 16,995 - 16,995 17,864
- - - - - - - - 44 44 981
- - - - - - 1,000 1,000 - 1,000 58,884
- - - - - - 47,075 47,075 - 47,075 26,369
- - 50,802 51,505 1 5,400 2 96,372 65,070 479,149 44 479,193 804,585
579,901 - 50,802 51,505 1 5,400 2 96,372 65,070 1,059,050 44 1,059,094 1,662,590
435,723 - - - - - - 435,723 - 435,723 538,120
81,036 - - - - - - 81,036 - 81,036 163,432
6,653 - - - - - - 6,653 - 6,653 47,215
- - - - - - - - - - 10,000
- - - - - - - - - - 273
- - - - - - - - - - 1,370
- - - - - - - - - - 941
- - - - - - - - - - 121
- - - - - - - - - - 226
- - - - - - - - - - 2,868
- - - - - - - - - - 136
4,000 - - - - - - 4,000 - 4,000 4,676
- - - - - - - - - - 537
- - - - - - - - - - 1,773
- - - - - - - - - - 2,139
53,489 - - - - - - 53,489 - 53,489 142,563
580,901 - - - - - - 580,901 - 580,901 916,390
- - 25,227 49,790 9 ,823 2 96,372 99,999 481,211 - 481,211 724,998
- - 15,205 1,403 3 ,857 - 126,576 147,041 - 147,041 118,526
- - 2,254 312 1 ,720 - 79,883 84,169 - 84,169 48,775
- - - - - - 1,731 1,731 - 1,731 2,420
- - - - - - 15,000 15,000 - 15,000 13,528
- - - - - - 50 50 - 50 350
- - - - - - 3,198 3,198 - 3,198 5,679
- - - - - - 5,286 5,286 - 5,286 11,857
- - - - - - 790 790 - 790 900
- - 3,300 - - - 2,688 5,988 - 5,988 2,515
- - - - - - 205 205 - 205 153
- - - - - - 215 215 - 215 34
- - - - - - - - - - 2,614
- - 1,325 - - - - 1,325 - 1,325 -
- - - - - - 14,146 14,146 - 14,146 13,782
- - - - - - 211 211 - 211 5,091
- - - - - - - - - - 2,944
- - - - - - 1,523 1,523 - 1,523 775
- - - - - - 3,332 3,332 - 3,332 822
- - - - - - - - - - 21,926
- - - - - - - - - - 21,973
- - 47,311 51,505 1 5,400 2 96,372 354,833 765,421 - 765,421 999,662
580,901 - 47,311 51,505 1 5,400 2 96,372 354,833 1,346,322 - 1,346,322 1,916,052
(1,000) - 3,491 - - - (289,763) (287,272) 44 ( 287,228) (253,462)
- 3,490 - - - - - 3,490 - 3,490 -
- ( 3,490) - - - - - (3,490) - ( 3,490) -
99,999 - - - - - 204,269 304,268 - 304,268 257,264
- - - - - - (16,995) (16,995) - ( 16,995) (18,314)
99,999 - - - - - 187,274 287,273 - 287,273 238,950
98,999 - 3,491 - - - (102,489) 1 44 45 (14,512)
508,287 ( 6,429) - 1 (1,525) - (430,171) 70,163 5,361 75,524 90,036
$ 607,286 $ ( 6,429) $ 3,491 $ 1 $ (1,525) $ - $ (532,660) $ 70,164 $ 5,405 $ 75,569 $ 75,524
- 171 -

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, 2011
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 $ 851,199 $ 5 86,886 $ 5 79,901 $ (6,985) $ - $ - $ - $ -
State GOCCP Non-CPA 6,704 6,704 6,704 - - - - -
Federal GOCCP Youth Strategies 50,822 1 47,002 95,603 (51,399) - - - -
Federal SAMHSA Drug-Free Communities 30,855 15,401 15,400 (1) - - - -
Federal MSDE Healthy Families 296,372 2 96,372 2 96,372 - - - - -
Other 18,015 22,092 16,995 (5,097) - - - -
Investment Income - - - - - - 44 44
Donations - - 1,000 1,000 - - - -
Miscellaneous 15,230 52,296 47,075 (5,221) - - - -
Total Revenues 1,269,197 1 ,126,753 1 ,059,050 (67,703) - - 44 44
-
EXPENDITURES
Program Contracted Services 975,733 9 64,029 9 16,934 47,095 - - - -
Other Expenditures
Salaries 310,254 2 28,753 2 28,077 676 - - - -
Fringe Benefit Costs 125,962 1 12,071 90,822 21,249 - - - -
Auditing 2,988 2,988 1,731 1,257 - - - -
Consultants - 15,000 15,000 - - - - -
Professional Groups 350 50 50 - - - - -
Equipment Rental 3,698 3,198 3,198 - - - - -
Other Contracted Services - - 5,286 (5,286) - - - -
Postage 3,000 2,500 790 1,710 - - - -
Office Supplies 6,983 6,300 5,988 312 - - - -
Equipment Operation 500 500 205 295 - - - -
Business Travel 350 1,550 215 1,335 - - - -
Meetings & Conferences 3,930 - - - - - - -
Training - 4,000 1,325 2,675 - - - -
Board's Expenditures 3,030 14,058 14,146 (88) - - - -
Advertising 780 211 211 - - - - -
Marketing/Promotions 3,849 3,000 4,000 (1,000) - - - -
Communications 1,200 1,200 1,523 (323) - - - -
Utilities 3,089 3,089 3,332 (243) - - - -
Other Charges 62,986 58,616 53,489 5,127 - - - -
Total Expenditures 1,508,682 1 ,421,113 1 ,346,322 74,791 - - - -
Excess of Revenues Over (Under)
Expenditures (239,485) (294,360) (287,272) 7,088 - - 44 44
OTHER FINANCING SOURCES (USES)
Transfers In within Partnerships 30,855 3,490 3,490 - - - - -
Transfers Out within Partnerships (30,855) (3,490) (3,490) - - - - -
Transfers In (Out) for:
Program Contracted Services - In 257,500 3 15,452 3 04,268 (11,184) - - - -
Program Contracted Services - Out (18,015) (22,092) (16,995) 5,097 - - - -
Other Financing Sources (Uses) 239,485 2 93,360 2 87,273 (6,087) - - - -
Net Increase (Decrease) in
Fund Balances/Net Assets $ - $ (1,000) 1 $ 1,001 $ - $ - 44 $ 44
Fund Balances, July 1 70,163 5,361
Fund Balances, June 30 $ 7 0,164 $ 5,405
- 172 -

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, 2011
(CONTINUED)
TOTAL
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ 851,199 $ 586,886 $ 5 79,901 $ (6,985)
6,704 6,704 6,704 -
50,822 1 47,002 95,603 (51,399)
30,855 1 5,401 15,400 (1)
296,372 2 96,372 2 96,372 -
18,015 2 2,092 16,995 (5,097)
- - 44 44
- - 1,000 1,000
15,230 5 2,296 47,075 (5,221)
1,269,197 1 ,126,753 1 ,059,094 (67,659)
975,733 9 64,029 9 16,934 4 7,095
310,254 2 28,753 2 28,077 676
125,962 1 12,071 90,822 2 1,249
2,988 2,988 1,731 1,257
- 1 5,000 15,000 -
350 50 50 -
3,698 3,198 3,198 -
- - 5,286 (5,286)
3,000 2,500 790 1,710
6,983 6,300 5,988 312
500 500 205 295
350 1,550 215 1,335
3,930 - - -
- 4,000 1,325 2,675
3,030 1 4,058 14,146 (88)
780 211 211 -
3,849 3,000 4,000 (1,000)
1,200 1,200 1,523 (323)
3,089 3,089 3,332 (243)
62,986 5 8,616 53,489 5,127
1,508,682 1 ,421,113 1 ,346,322 7 4,791
(239,485) (294,360) (287,228) 7,132
30,855 3,490 3,490 -
(30,855) (3,490) (3,490) -
257,500 3 15,452 3 04,268 (11,184)
(18,015) (22,092) (16,995) 5,097
239,485 2 93,360 2 87,273 (6,087)
$ - $ (1,000) 45 $ 1 ,045
75,524
$ 7 5,569
- 173 -

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.
- 175 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
NET ASSETS BY COMPONENT - GOVERNMENT-WIDE
(GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST NINE FISCAL YEARS
Table 1
2003 2004 2005 2006 2007
Governmental Activities:
Invested in capital assets, net of related debt $ 111,710,606 $ 82,209,646 $ 85,784,267 $ 95,644,000 $ 103,657,227
Restricted 22,167,033 8,118,231 8,418,254 9,842,795 18,012,695
Unrestricted (deficit) (1) ( 29,783,476) ( 14,178,514) ( 6,161,281) 7,339,567 ( 3,740,905)
Total Governmental Activities Net Assets 104,094,163 76,149,363 88,041,240 112,826,362 117,929,017
Business-type Activities:
Invested in capital assets, net of related debt 50,984,848 52,094,337 55,612,719 69,672,273 74,463,912
Restricted 6,482,894 7,857,202 7,742,890 11,733,254 19,133,485
Total Business-type Activities Net Assets 57,467,742 59,951,539 63,355,609 81,405,527 93,597,397
Primary Government:
Invested in capital assets, net of related debt 162,695,454 134,303,983 141,396,986 165,316,273 178,121,139
Restricted 28,649,927 15,975,433 16,161,144 21,576,049 37,146,180
Unrestricted (deficit) (1) ( 29,783,476) ( 14,178,514) ( 6,161,281) 7,339,567 ( 3,740,905)
Total Primary Government Net Assets $ 161,561,905 $ 136,100,902 $ 151,396,849 $ 194,231,889 $ 211,526,414
NOTES:
* Government-wide net asset information is reported on the accrual basis of accounting.
* Accounting standards require that net assets be reported in three components in the financial
statements: invested in capital assets, net of related debt; restricted; and unrestricted. Net
assets are considered restricted when (1) an external party, such as the state or federal
government, places a restriction on how the resources may be used, or (2) enabling
legislation is enacted by the County.
* Information prior to FY03 is not available, due to the FY03 implementation of GASB 34.
* Source: Statement of Net Assets, pages 36-37.
(1) In the government-wide financial statements, the County has reported negative unrestricted net assets for some years.
This is due to the fact that the County issues general obligation bonded debt for purposes of capital construction on
behalf of the Queen Anne's County Board of Education. Absent the effect of this relationship, the County would
have reported positive net assets for its governmental activities and for government-wide purposes. Government-
wide unrestricted net assets would have been:
Unrestricted (deficit) net assets reported above $ ( 29,783,476) $ ( 14,178,514) $ (6,161,281) $ 7,339,567 $ (3,740,905)
Debt issued for capital on behalf of others 41,941,175 51,839,220 47,345,646 44,460,306 57,496,385
County net assets absent effect of this relationship $ 12,157,699 $ 37,660,706 $ 41,184,365 $ 51,799,873 $ 53,755,480
- 176 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
NET ASSETS BY COMPONENT - GOVERNMENT-WIDE
(GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST NINE FISCAL YEARS
Table 1
(CONTINUED)
2008 2009 2010 2011
$ 117,831,360 $ 123,217,989 $ 121,702,025 $ 118,274,533
15,376,330 16,582,660 22,290,307 22,399,514
( 15,075,202) ( 26,672,299) ( 45,795,597) ( 61,193,944)
118,132,488 113,128,350 98,196,735 79,480,103
77,237,512 77,146,688 79,032,373 78,069,061
18,276,271 19,886,675 18,180,809 16,821,905
95,513,783 97,033,363 97,213,182 94,890,966
195,068,872 200,364,677 200,734,398 196,343,594
33,652,601 36,469,335 40,471,116 39,221,419
( 15,075,202) ( 26,672,299) ( 45,795,597) ( 61,193,944)
$ 213,646,271 $ 210,161,713 $ 195,409,917 $ 174,371,069
$ ( 15,075,202) $ ( 26,672,299) $ ( 45,795,597) $ ( 61,193,944)
53,758,049 50,291,243 57,677,186 72,437,047
$ 38,682,847 $ 23,618,944 $ 11,881,589 $ 11,243,103
- 177 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET ASSETS - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST NINE FISCAL YEARS
Table 2-a
2003 2004 2005 2006 2007
Expenses
Governmental Activities:
General Government $ 7,537,390 $ 8,902,751 $ 8,774,831 $ 9,071,760 $ 9,854,468
Public Safety 10,161,429 13,064,686 14,255,183 17,534,652 19,149,388
Public Works 7,594,914 7,512,277 8,303,570 8,898,010 9,913,917
Health 952,194 1,123,795 1,284,216 1,377,717 1,450,866
Social Services 4,003,914 4,084,308 4,786,130 4,420,205 4,474,784
Education 43,050,433 46,142,006 40,377,624 42,303,087 56,118,585
Parks & Recreation 2,068,102 3,810,546 2,385,014 2,562,890 3,158,455
Library 975,549 1,020,653 1,073,222 1,168,232 1,266,183
Conservation of Natural Resources 892,015 537,207 591,986 478,426 497,926
Economic/Community Development 1,775,216 1,634,749 1,546,516 1,575,099 3,258,876
Interest and Fiscal Charges 2,649,524 2,981,403 2,288,442 2,508,070 2,864,493
Total Governmental Activities Expenses 81,660,680 90,814,381 85,666,734 91,898,148 112,007,941
Business-type Activities:
Water and Sewer 6,603,225 6,975,749 6,974,968 7,127,140 7,802,798
Parks & Recreation 1,929,891 2,007,419 2,524,904 2,509,783 3,273,986
Public Marinas - - - - 57,372
Airport 492,856 522,863 529,755 713,896 674,337
Total Business-type Activities Expenses 9,025,972 9,506,031 10,029,627 10,350,819 11,808,493
Total Primary Government Expenses 90,686,652 100,320,412 95,696,361 102,248,967 123,816,434
Program Revenues
Governmental Activities:
General Government
Charges for Services 688,216 1,007,791 1,124,756 1,139,531 1,127,737
Operating Grants and Contributions 146,501 185,597 312,136 454,948 377,412
Capital Grants and Contributions 62,382 61,448 22,747 60,000 5,000
Total Revenue 897,099 1,254,836 1,459,639 1,654,479 1,510,149
Public Safety
Charges for Services 720,580 1,197,844 968,857 1,595,738 1,642,258
Operating Grants and Contributions 1,265,912 887,519 1,443,474 1,743,073 1,255,307
Capital Grants and Contributions - 493,132 271,867 456,993 272,497
Total Revenue 1,986,492 2,578,495 2,684,198 3,795,804 3,170,062
Public Works
Charges for Services 692,471 782,252 1,666,335 1,189,117 871,962
Operating Grants and Contributions 4,259,700 3,624,359 4,130,984 3,710,398 5,572,760
Capital Grants and Contributions 230,243 168,092 461,499 57,000 1,838,101
Total Revenue 5,182,414 4,574,703 6,258,818 4,956,515 8,282,823
Health
Operating Grants and Contributions 5,241 - - 150,966 -
Social Services
Charges for Services 265,809 188,032 162,958 58,467 73,497
Operating Grants and Contributions 2,881,622 2,769,345 3,035,511 2,550,840 2,589,967
Capital Grants and Contributions 459,411 829,082 24,388 - 172,732
Total Revenue 3,606,842 3,786,459 3,222,857 2,609,307 2,836,196
Education
Charges for Services 703,191 1,277,905 917,387 1,696,657 963,216
Operating Grants and Contributions - - - 18,000 -
Capital Grants and Contributions - - - - -
Total Revenue 703,191 1,277,905 917,387 1,714,657 963,216
Parks & Recreation
Charges for Services 20,494 14,532 21,724 68,051 158,447
Operating Grants and Contributions 8,893 4,619 - 42,690 58,485
Capital Grants and Contributions 585,164 3,103,241 297,537 5,998,982 4,363,393
Total Revenue 614,551 3,122,392 319,261 6,109,723 4,580,325
Conservation of Natural Resources
Charges for Services 89,691 109,527 150,052 119,580 100,488
Operating Grants and Contributions 250,078 324,573 371,960 680,396 597,613
Capital Grants and Contributions - 5,211 28,535 - -
Total Revenue 339,769 439,311 550,547 799,976 698,101
Economic/Community Development
Charges for Services 24,261 17,615 23,728 11,086 4,083
Operating Grants and Contributions 658,808 465,989 247,404 121,497 120,254
Capital Grants and Contributions 5,000 - - - -
Total Revenue 688,069 483,604 271,132 132,583 124,337
Total Governmental Activities Program Revenues 14,023,668 17,517,705 15,683,839 21,924,010 22,165,209
- 178 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET ASSETS - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST NINE FISCAL YEARS
Table 2-a
(CONTINUED)
2008 2009 2010 2011
$ 11,167,743 $ 13,317,683 $ 14,089,387 $ 15,968,633
20,721,185 23,570,049 25,361,341 25,413,678
10,420,547 10,237,718 9,432,489 9,098,949
1,441,143 1,590,004 1,663,321 1,701,677
4,978,883 5,617,621 5,554,667 5,001,240
58,034,317 53,296,238 53,491,659 57,506,341
3,330,087 5,060,018 3,618,427 3,090,228
1,270,718 1,414,008 1,473,689 1,457,336
2,172,443 2,473,308 5,281,372 3,811,748
3,527,908 2,197,116 2,001,306 1,893,570
3,033,416 2,831,002 3,510,678 4,078,105
120,098,390 121,604,765 125,478,336 129,021,505
9,621,784 10,689,782 10,610,705 10,905,989
2,179,157 2,178,163 2,789,901 4,099,507
27,344 38,050 96,739 67,395
812,067 879,906 1,017,780 1,167,655
12,640,352 13,785,901 14,515,125 16,240,546
132,738,742 135,390,666 139,993,461 145,262,051
1,047,371 1,055,945 1,261,230 1,086,641
295,898 403,018 546,176 694,347
757,975 5,567 44,743 118,100
2,101,244 1,464,530 1,852,149 1,899,088
3,167,090 1,394,463 1,263,212 1,090,545
1,254,611 1,266,869 1,891,120 1,461,080
1,171 273,176 303,566 82,885
4,422,872 2,934,508 3,457,898 2,634,510
1,014,600 714,765 791,796 872,352
6,304,965 7,566,648 632,923 546,719
544,610 298,500 264,078 901,289
7,864,175 8,579,913 1,688,797 2,320,360
- - - -
64,041 68,386 67,423 69,382
2,911,796 2,928,291 2,666,917 2,050,062
613,804 348,124 2,688,245 215,748
3,589,641 3,344,801 5,422,585 2,335,192
1,011,013 740,213 852,201 755,443
- 8,050 433,000 -
- 161,673 - -
1,011,013 909,936 1,285,201 755,443
302,195 240,954 177,568 187,901
72,659 509 123,336 1,868
5,666,226 1,087,329 631,504 199,698
6,041,080 1,328,792 932,408 389,467
88,534 97,481 101,019 75,354
322,718 55,847 93,002 1,006,138
- 691,085 4,191,024 1,923,471
411,252 844,413 4,385,045 3,004,963
5,249 4,786 4,236 4,236
163,245 641,305 239,893 239,893
- - 110,561 110,561
168,494 646,091 354,690 354,690
25,609,771 20,052,984 19,378,773 13,693,713
CONTINUED
- 179 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET ASSETS - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST NINE FISCAL YEARS
Table 2-a
(CONTINUED)
2003 2004 2005 2006 2007
Business-type Activities:
Water and Sewer
Charges for Services $ 6,738,431 $ 7,206,833 $ 6,704,817 $ 8,057,402 $ 12,169,440
Operating Grants and Contributions - - 541,052 - -
Capital Grants and Contributions 2,506,457 868,581 994,303 12,576,490 5,015,603
Total Revenue 9,244,888 8,075,414 8,240,172 20,633,892 17,185,043
Parks & Recreation
Charges for Services 883,297 1,051,908 1,099,161 1,576,001 1,581,030
Operating Grants and Contributions - - 330,204 387,270 1,279,648
Capital Grants and Contributions 658,120 145,975 4,000 469,624 144,844
Total Revenue 1,541,417 1,197,883 1,433,365 2,432,895 3,005,522
Public Marinas
Charges for Services - - - - 108,100
Operating Grants and Contributions - - - - 92,348
Capital Grants and Contributions - - - - -
Total Revenue - - - - 200,448
Airport
Charges for Services 179,029 149,601 182,092 23,661 32,683
Operating Grants and Contributions - - - 4,448 1,112
Capital Grants and Contributions 41,190 23,636 69,595 6,368,327 667,166
Total Revenue 220,219 173,237 251,687 6,396,436 700,961
Total Business-type Activities Program Revenues 11,006,524 9,446,534 9,925,224 29,463,223 21,091,974
Total Primary Government Program Revenues 25,030,192 26,964,239 25,609,063 51,387,233 43,257,183
Net (Expense) Revenue (1)
Governmental activities ( 67,637,012) ( 73,296,676) ( 69,982,895) ( 69,974,138) ( 89,842,732)
Business-type activities 1,980,552 ( 59,497) ( 104,403) 19,112,404 9,283,481
Total Primary Government Net Expense $ ( 65,656,460) $ ( 73,356,173) $ ( 70,087,298) $ ( 50,861,734) $ ( 80,559,251)
General Revenues and Other Changes in Net Assets
Governmental Activities:
Taxes (2) $ 66,274,065 $ 75,137,137 $ 80,932,258 $ 87,157,631 $ 90,910,849
Grants and Contributions Not Restricted to Specific Programs - - 88,750 - -
Investment income 274,585 285,279 682,682 1,738,114 3,162,830
Gain (Loss) on Sale of Capital Assets 58,529 ( 452,997) - 2,983,087 13,605
Miscellaneous 608,688 724,069 1,063,336 997,032 1,928,398
Transfers In (Out) ( 554,940) ( 154,916) ( 3,055,362) 2,396,851 ( 1,070,297)
Special Items - Gain 832,718 215,000 - - -
Extraordinary Loss ( 24,430) - - ( 477,707) -
Total Governmental Activities 67,469,215 75,753,572 79,711,664 94,795,008 94,945,385
Business-type Activities:
Investment income 756,118 635,674 634,413 771,883 956,687
Gain (Loss) on Sale of Capital Assets ( 39,866) - - - 4,691
Miscellaneous 333,402 915,879 772,083 562,482 876,714
Transfers In (Out) 554,940 154,916 3,055,362 ( 2,396,851) 1,070,297
Special items - (Loss) - - ( 953,385) - -
Extraordinary Gain - 951,460 - - -
Total Business-type Activities 1,604,594 2,657,929 3,508,473 ( 1,062,486) 2,908,389
Total Primary Government 69,073,809 78,411,501 83,220,137 93,732,522 97,853,774
Change in Net Assets
Governmental activities ( 167,797) 2,456,896 9,728,769 24,820,870 5,102,653
Business-type activities 3,585,146 2,598,432 3,404,070 18,049,918 12,191,870
Total Primary Government $ 3,417,349 $ 5,055,328 $ 13,132,839 $ 42,870,788 $ 17,294,523
NOTES:
* Government-wide net asset information is reported on the accrual basis of accounting.
* Information prior to FY03 is not available, due to the FY03 implementation of GASB34.
* Source: Statement of Activities, pages 38-39.
(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.
- 180 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN NET ASSETS - GOVERNMENT-WIDE (GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES)
LAST NINE FISCAL YEARS
Table 2-a
(CONTINUED)
2008 2009 2010 2011
$ 8,014,366 $ 7,695,100 $ 8,224,428 $ 8,192,471
- - 98,492 -
2,584,371 682,935 208,115 837,426
10,598,737 8,378,035 8,531,035 9,029,897
1,459,725 1,526,244 1,633,203 1,568,227
55,953 45,824 41,838 39,572
95,890 69,068 289,895 196,487
1,611,568 1,641,136 1,964,936 1,804,286
105,900 100,250 62,600 84,987
3,710 - 29,017 16,241
- - 545,123 588,326
109,610 100,250 636,740 689,554
46,960 34,907 50,585 37,955
- - 33,922 3,715
382,945 289,112 1,519,810 448,600
429,905 324,019 1,604,317 490,270
12,749,820 10,443,440 12,737,028 12,014,007
38,359,591 30,496,424 32,115,801 25,707,720
( 94,488,619) ( 101,551,781) ( 106,099,563) ( 115,327,792)
109,468 ( 3,342,461) ( 1,778,097) ( 4,226,539)
$ ( 94,379,151) $ (104,894,242) $ (107,877,660) $ (119,554,331)
$ 91,853,216 $ 95,530,316 $ 90,469,883 $ 96,093,533
- - - -
2,128,509 642,472 144,553 136,523
- 1,540,404 26,731 281,158
721,946 2,182,525 786,719 711,868
( 11,581) ( 3,348,074) ( 559,331) ( 611,922)
- - - -
- - - -
94,692,090 96,547,643 90,868,555 96,611,160
875,509 595,279 436,045 407,629
- - - -
919,828 918,688 962,540 884,772
11,581 3,348,074 559,331 611,922
- - - -
- - - -
1,806,918 4,862,041 1,957,916 1,904,323
96,499,008 101,409,684 92,826,471 98,515,483
203,471 ( 5,004,138) ( 15,231,008) ( 18,716,632)
1,916,386 1,519,580 179,819 ( 2,322,216)
$ 2,119,857 $ (3,484,558) $ ( 15,051,189) $ ( 21,038,848)
- 181 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
GENERAL TAX REVENUES - GOVERNMENTAL ACTIVITIES
LAST NINE FISCAL YEARS
Table 2-b
2003 2004 2005 2006 2007
Local Property Taxes $ 3 6,257,473 $ 3 9,784,933 $ 4 2,121,614 $ 4 4,688,709 $ 4 6,185,050
Local Income Tax 2 3,471,091 2 7,738,830 2 9,957,555 3 1,959,096 3 5,346,494
Other Local Taxes 6 ,545,501 7 ,613,374 8 ,853,089 1 0,509,826 9 ,379,305
Total Taxes - Governmental Activities $ 6 6,274,065 $ 7 5,137,137 $ 8 0,932,258 $ 8 7,157,631 $ 9 0,910,849
2008 2009 2010 2011
Local Property Taxes $ 5 0,021,587 $ 5 5,362,114 $ 5 9,267,240 $ 6 0,070,368
Local Income Tax 3 5,700,111 3 4,834,937 2 5,715,247 3 0,624,679
Other Local Taxes 6 ,131,518 5 ,333,265 5 ,487,396 5 ,398,486
Total Taxes - Governmental Activities $ 9 1,853,216 $ 9 5,530,316 $ 9 0,469,883 $ 9 6,093,533
NOTES:
* Government-wide general tax revenue information is reported on the accrual basis of accounting.
* Information prior to FY03 is not available, due to the FY03 implementation of GASB34.
* Source: Statement of Activities, pages 38-39.
- 182 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 3
2002 2003 2004 2005 2006
General Fund:
Reserved $ 9 3,099 $ 5,578,543 $ 5,766,939 $ 5 ,705,316 $ 6,169,255
Unreserved 7,426,819 3,269,461 5,669,161 4,104,926 14,944,399
Total General Fund 7,519,918 8,848,004 11,436,100 9,810,242 21,113,654
All Other Governmental Funds:
Reserved 9,032,415 9,570,304 12,329,623 1 5,075,521 13,751,478
Unreserved, reported in:
Capital Projects Fund 12,097,123 6,465,484 11,835,783 1 1,706,521 13,579,649
Special Revenue Funds 3,127,711 2,972,713 2,698,617 3,156,479 2,810,027
Total All Other Governmental Funds 24,257,249 19,008,501 26,864,023 2 9,938,521 30,141,154
Total All Governmental Funds $ 31,777,167 $ 27,856,505 $ 38,300,123 $ 3 9,748,763 $ 51,254,808
2007 2008 2009 2010 2011
General Fund:
Reserved $ 7,140,303 $ 8,948,231 $ 8,643,600 $ 7 ,734,692 $ -
Unreserved 15,302,827 3,972,847 6,381,843 6,296,418 -
Nonspendable (1) - - - - 4,000
Restricted (1) - - - - 333,798
Committed (1) - - - - 657,068
Assigned (1) - - - - 70,000
Unassigned (1) - - - - 4,753,656
Total General Fund 22,443,130 12,921,078 15,025,443 1 4,031,110 5,818,522
All Other Governmental Funds:
Reserved 20,060,988 16,706,954 17,007,368 1 5,153,381 -
Unreserved, reported in:
Capital Projects Funds 17,618,012 14,409,216 1,723,066 1 2,538,916 -
Special Revenue Funds 3,019,522 2,185,304 2,751,120 7,842,939 -
Nonspendable (1) - - - - 4,401,483
Restricted (1) - - - - 22,065,716
Committed (1) - - - - 1,820,818
Assigned (1) - - - - 14,745,215
Unassigned (1) - - - - ( 172,381)
Total All Other Governmental Funds 40,698,522 33,301,474 21,481,554 3 5,535,236 42,860,851
Total All Governmental Funds $ 63,141,652 $ 46,222,552 $ 36,506,997 $ 4 9,566,346 $ 48,679,373
NOTES:
* Fund balance information for governmental funds is reported on the modified accrual basis of accounting.
* Source: Balance Sheet, pages 40-41.
(1) As of June 30, 2011, fund balance classifications changed due to the implementation of GASB 54.
- 183 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
2002 2003 2004 2005 2006
Revenues
Taxes
Local Property Taxes $ 3 3,760,455 $ 3 6,238,606 $ 3 9,771,711 $ 4 2,191,297 $ 4 4,657,603
Local Income Taxes 2 3,217,162 2 3,517,175 2 6,765,483 2 8,237,534 3 1,633,987
Other Local Taxes 3 ,987,371 6 ,545,501 7 ,613,374 8 ,853,089 1 0,509,826
State Shared Taxes 1 ,941,971 4 ,424,763 3 ,660,145 4 ,528,046 4 ,233,139
Licenses and Permits 2 ,152,720 1 ,410,491 6 47,633 8 29,784 8 24,917
Intergovernmental 1 0,471,381 6 ,351,125 9 ,261,854 6 ,049,496 1 1,476,325
Bond Interest Reimbursement - Build America Bond - - - - -
Charges for Current Services 1 ,460,330 1 ,248,229 3 ,464,771 3 ,394,626 4 ,864,374
Fines and Forfeitures 1 5,861 2 9,443 3 8,798 4 8,654 7 7,008
Special Assessments 4 6,419 4 3,067 (7,528) - -
Investment Income 1 ,042,194 4 65,164 4 10,845 9 07,275 1 ,738,139
Donations - 8 1,350 9 3,178 1 04,093 9 8,610
Miscellaneous (1) 1 ,020,802 8 53,309 9 54,621 1 ,567,883 1 ,346,669
Total Revenues 7 9,116,666 8 1,208,223 9 2,674,885 9 6,711,777 1 11,460,597
Expenditures
Current
General Government (2) 6 ,139,990 7 ,729,416 8 ,851,440 8 ,933,985 9 ,516,299
Public Safety 8 ,726,365 9 ,829,451 1 1,970,575 1 3,199,057 1 6,356,949
Public Works 6 ,126,407 6 ,790,032 7 ,872,914 9 ,055,472 9 ,168,186
Health 1 ,208,954 8 07,489 1 ,101,713 1 ,261,488 1 ,355,057
Social Services 3 ,105,830 4 ,303,930 4 ,922,755 4 ,367,736 4 ,294,781
Education (3) 3 9,713,371 4 3,050,433 4 6,689,001 4 0,421,109 4 2,346,958
Parks and Recreation 1 ,727,072 2 ,616,946 6 ,266,051 2 ,481,296 9 ,096,593
Library (4) 9 35,439 9 51,939 9 97,043 1 ,049,612 1 ,144,622
Conservation of Natural Resources 8 80,299 8 80,058 5 65,218 5 78,426 5 08,606
Economic/Community Development 1 ,267,138 1 ,848,707 1 ,809,329 1 ,552,689 1 ,558,978
Miscellaneous - - - - -
Capital Outlay 8 ,001,582 1 ,488,726 1 ,173,687 1 ,280,650 1 ,049,361
Debt Service
Principal 2 ,920,206 2 ,690,928 4 ,029,332 5 ,928,559 3 ,677,307
Debt Issuance Costs - - - - -
Interest and Fiscal Charges 2 ,698,380 2 ,695,664 2 ,780,312 2 ,555,411 2 ,569,650
Total Expenditures 8 3,451,033 8 5,683,719 9 9,029,370 9 2,665,490 1 02,643,347
Excess (Deficiency) of Revenues over (under) Expenditures (4,334,367) (4,475,496) (6,354,485) 4 ,046,287 8 ,817,250
Other Financing Sources (Uses)
Issuance of Debt 6 ,310,000 - 1 6,602,500 3 0,026,336 -
Re-allocation of 2006 Bonds - - - - -
Bond Premiums - - - 1 ,069,864 -
Bond Issuance Costs - - - (159,647) -
Proceeds of Capital Asset Disposals - 9 8,000 1 35,520 1 54,787 1 ,176,860
Insurance Proceeds - - - - -
Capital Contributions - Developer - - - 8 8,750 -
Transfers In (5) 6 ,137,635 3 ,806,476 9 ,647,582 1 0,661,440 8 ,578,135
Transfers Out (6) (7,115,841) (4,361,416) (9,802,498) (13,716,802) (6,181,284)
Defeasance of debt (6,290,795) - - (30,722,375) -
Total Other Financing Sources (Uses) (959,001) (456,940) 1 6,583,104 (2,597,647) 3 ,573,711
Special and Extraordinary Items
Special Items - 8 85,140 2 15,000 - -
Extraordinary Gains (Losses) - (24,430) - - (477,707)
Total Special Items and Extraordinary Gains (Losses) - 8 60,710 2 15,000 - (477,707)
Net Increase (Decrease) in Fund Balances $ (5,293,368) $ (4,071,726) $ 1 0,443,619 $ 1,448,640 $ 1 1,913,254
Debt service as a percentage of non-capital expenditures (7, 8) 7.45% 6.40% 6.96% 9.28% 6.15%
NOTES:
* Governmental fund information is reported on the modified accrual basis of accounting.
* Source: Statement of Revenues, Expenditures and Changes in Fund Balances, pages 44-45,
and the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities, pages 46-47.
(1) For FY02, "Miscellaneous Revenue" includes amounts previously classified as "Operating Transfers in" from Component Units.
(2) For all fiscal years, "General Government" includes amounts previously classified as "Miscellaneous," "Intergovernmental" and/or "Contingency."
(3) For FY02, "Education Expenditures" includes amounts previously classified as "Operating Transfers out" to Component Unit (Board of Education).
(4) For FY02, "Library Expenditures" includes amounts previously classified as "Operating Transfers out" to Component Unit (Library).
(5) For FY02, "Transfers In" exclude amounts previously classified as "Operating Transfers in" from Component Units.
(6) For FY02, "Transfers Out" exclude amounts previously classified as "Operating Transfers out" to Component Units (Board of Education and Library).
(7) Debt service represents debt service principal and interest expenditures and excludes amortization of debt issuance costs as presented above.
(8) Noncapital expenditures represents Total Expenditures above, less Capital Outlay.
- 184 -

QUEEN ANNE'S COUNTY, MARYLAND
FINANCIAL TRENDS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Table 4
(CONTINUED)
2007 2008 2009 2010 2011
$ 4 6,208,342 $ 5 0,007,054 $ 5 5,374,053 $ 5 9,242,742 $ 6 0,097,959
3 4,980,663 3 4,767,725 3 5,988,334 2 9,647,125 2 9,527,496
9 ,379,305 6 ,131,518 5 ,333,265 5 ,487,396 5 ,398,486
5 ,125,419 5 ,306,763 7 ,591,829 5 08,138 2 30,401
8 95,931 8 90,821 8 74,639 8 63,782 9 19,663
1 0,661,130 1 2,199,511 8 ,049,695 1 2,061,066 8 ,777,729
- - - 1 93,567 4 38,022
3 ,806,563 4 ,049,902 3 ,326,696 3 ,396,080 3 ,143,846
2 39,194 1 ,759,370 1 15,658 2 58,937 7 8,345
- - - - -
3 ,162,830 2 ,128,509 6 42,472 1 44,553 1 36,523
7 4,694 2 47,002 7 6,867 1 40,731 1 09,342
1 ,853,706 7 19,067 2 ,182,525 7 86,719 7 08,455
1 16,387,777 1 18,207,242 1 19,556,033 1 12,730,836 1 09,566,267
8 ,772,229 1 0,128,699 1 0,841,479 1 0,608,976 1 0,397,457
1 7,918,740 1 9,292,661 2 0,483,238 2 1,344,575 2 1,127,321
9 ,167,362 9 ,182,618 8 ,678,715 7 ,671,352 7 ,277,767
1 ,428,395 1 ,430,670 1 ,572,848 1 ,637,101 1 ,670,222
4 ,260,927 4 ,747,491 5 ,029,493 4 ,767,647 4 ,098,650
5 6,163,966 5 8,086,283 5 3,348,513 5 3,545,597 5 7,566,865
2 ,809,748 3 ,083,038 3 ,145,367 3 ,055,335 2 ,521,175
1 ,242,573 1 ,247,108 1 ,390,398 1 ,424,078 1 ,433,725
4 83,810 2 ,177,820 2 ,445,352 5 ,263,577 3 ,872,916
3 ,188,316 3 ,513,153 1 ,968,587 1 ,847,195 1 ,715,524
9 15,542 7 31,771 7 06,792 1 ,373,090 4 ,699,452
1 4,291,416 1 3,676,569 8 ,594,972 7 ,868,741 4 ,838,581
3 ,795,769 4 ,888,405 5 ,089,347 4 ,948,144 6 ,964,558
2 36,899 3 ,972 (423) 1 45,884 1 29,671
2 ,257,928 3 ,147,529 2 ,778,490 3 ,114,505 3 ,629,426
1 26,933,620 1 35,337,787 1 26,073,168 1 28,615,797 1 31,943,310
(10,545,843) (17,130,545) (6,517,135) (15,884,961) (22,377,043)
2 3,219,790 5 10,617 1 22,780 2 9,299,154 2 1,897,570
- (345,955) - - -
2 36,899 3 ,972 (423) 1 57,800 1 39,136
- - - - -
8 8,535 4 5,494 6 4,089 3 0,861 5 82,601
- 8 ,898 4 4,907 1 5,826 9 9,028
- - - - -
1 3,131,736 1 7,014,307 5 ,449,499 1 8,184,911 5 ,386,256
(14,202,033) (17,025,888) (8,879,272) (18,744,242) (6,614,521)
- - - - -
2 2,474,927 2 11,445 (3,198,420) 2 8,944,310 2 1,490,070
- - - - -
(42,242) - - - -
(42,242) - - - -
$ 1 1,886,842 $ (16,919,100) $ (9,715,555) $ 1 3,059,349 $ (886,973)
5.58% 6.61% 6.70% 6.80% 8.44%
- 185 -

QUEEN ANNE'S COUNTY, MARYLAND
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
2002 $ 6 92,030,001 $ 2,607,616,738 $ 3,299,646,739 $ 0.9760 $ 70,150,240 $ 3,369,796,979 $ 2 74,858,885 $ 3 ,644,655,864
2003 7 28,512,663 2,858,309,623 3,586,822,286 0.9760 64,201,229 3,651,023,515 2 76,953,744 3 ,927,977,259
2004 7 71,054,050 3,208,049,692 3,979,103,742 0.9760 59,945,270 4,039,049,012 2 97,843,389 4 ,336,892,401
2005 8 49,272,884 3,690,010,496 4,539,283,380 0.9260 57,382,490 4,596,665,870 3 30,840,259 4 ,927,506,129
2006 9 50,694,704 4,051,000,772 5,001,695,476 0.8700 59,360,390 5,061,055,866 3 69,542,935 5 ,430,598,801
2007 1 ,104,093,458 4,526,502,291 5,630,595,749 0.8000 63,168,480 5,693,764,229 4 19,303,486 6 ,113,067,715
2008 1 ,291,356,759 5,045,464,776 6,336,821,535 0.7700 61,729,010 6,398,550,545 4 74,798,401 6 ,873,348,946
2009 1 ,503,024,419 5,518,534,961 7,021,559,380 0.7700 61,513,370 7,083,072,750 5 47,163,868 7 ,630,236,618
2010 1 ,606,785,131 5,911,287,556 7,518,072,687 0.7700 62,858,590 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 59,364,960 7,740,096,715 6 44,654,739 8 ,384,751,454
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.
- 187 -

QUEEN ANNE'S COUNTY, MARYLAND
REAL PROPERTY TAX RATES - COUNTY DIRECT RATE
LAST TEN FISCAL YEARS
Table 6-a
County
Fiscal Direct
Year Rate (1)
2002 $ 0 .9760
2003 0.9760
2004 0.9760
2005 0.9260
2006 0.8700
2007 0.8000
2008 0.7700
2009 0.7700
2010 0.7700
2011 0.7671
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.
- 188 -

QUEEN ANNE'S COUNTY, MARYLAND
REAL PROPERTY TAX RATES - COUNTY SPECIAL TAXING DISTRICTS
LAST TEN FISCAL YEARS
Table 6-b
Kent Narrows
Commercial Management
Fiscal and Waterfront
Year Improvement District
2002 $ 0 .0600
2003 0.0600
2004 0.0600
2005 0.0600
2006 0.0600
2007 0.0600
2008 0.0600
2009 0.0600
2010 0.0600
2011 0.0600
NOTES:
* Tax rates are per $100 of assessed value.
* The personal property tax rate for Queen Anne's County is zero.
- 189 -

QUEEN ANNE'S COUNTY, MARYLAND
REAL PROPERTY TAX RATES - OVERLAPPING GOVERNMENTS - TOWNS
LAST TEN FISCAL YEARS
Table 6-c
Fiscal Town of Town of Town of Town of Town of
Year Centreville Barclay Church Hill Millington Queen Anne
2002 $ 0 .4800 $ 0 .1000 $ 0 .3400 $ 0 .2800 $ 0 .2100
2003 0.4800 0.1000 0 .3400 0.2800 0.1800
2004 0.4800 0.1000 0 .3400 0.2800 0.1800
2005 0.4800 0.1000 0 .3400 0.2800 0.1800
2006 0.4800 0.1000 0 .3400 0.2800 0.1800
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
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.
- 190 -

QUEEN ANNE'S COUNTY, MARYLAND
REAL PROPERTY TAX RATES - OVERLAPPING GOVERNMENTS - TOWNS
LAST TEN FISCAL YEARS
Table 6-c
(CONTINUED)
Town of Town of Town of
Queenstown Sudlersville Templeville
$ 0 .2000 $ 0 .1850 $ 0 .1610
0.2000 0.1760 0.1420
0.2000 0.1760 0.1420
0.2000 0.1670 0.1330
0.2000 0.1670 0.1220
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
- 191 -

QUEEN ANNE'S COUNTY, MARYLAND
TEN HIGHEST COMMERCIAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND NINE YEARS AGO
Table 7
For the Fiscal Year Ended June 30, 2011
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 51,409,800 0.66 %
KRM Development Corporation 38,637,130 0.50
White's Heritage Partners 23,343,628 0.30
Great American Life Insurance Company 17,689,900 0.23
Beach Harbor Campers Cooperative Inc 13,653,800 0.18
Pasquale Didonato 12,546,432 0.16
Reliable Development Company 12,204,006 0.16
K. Hovnanian 11,908,826 0.15
Mears Point Association 11,310,900 0.15
Symphony Centre 10,951,000 0.14
Total $ 203,655,422 2.63 %
Total Assessable Base $ 7 ,740,096,715 100.00 %
For the Fiscal Year Ended June 30, 2002
Ratio:
Taxpayer
Base to Total
Assessable Base Assessable Base
Second Horizon Group Limited Partnership $ 14,721,166 0.43 %
KRM Development 13,614,218 0.40
Washington Brick & Terra Cotta Company 8,260,509 0.25
Mears Point Association 8,033,120 0.24
Bay Bridge Limited 6,805,982 0.20
TC Shopping Center 6,609,362 0.20
Pasquale Didonato 5,923,682 0.18
Gateway Partnership 5,733,900 0.17
C&E Enterprises 5,631,466 0.17
Hunters Oak LLC 5,515,513 0.16
Total $ 80,848,918 2.40 %
Total Assessable Base $ 3,369,796,979 100.00 %
Source: State of Maryland Department of Assessments and Taxation
- 192 -

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
2002 $ 31,834,978 $ 31,759,768 99.76% $ 75,210 $ 31,834,978 100.00%
2003 34,534,049 34,452,221 99.76% 81,828 34,534,049 100.00%
2004 38,135,222 38,052,633 99.78% 82,589 38,135,222 100.00%
2005 40,608,914 40,542,167 99.84% 66,527 40,608,694 100.00%
2006 43,208,732 43,107,941 99.77% 100,564 43,208,505 100.00%
2007 44,500,414 44,401,745 99.78% 98,450 44,500,195 100.00%
2008 48,575,431 48,505,180 99.86% 70,029 48,575,209 100.00%
2009 53,839,023 53,756,369 99.85% 81,588 53,837,957 100.00%
2010 57,788,231 57,720,564 99.88% 52,887 57,773,451 99.97%
2011 58,758,234 58,696,129 99.89% - 58,696,129 99.89%
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.
- 193 -

QUEEN ANNE'S COUNTY, MARYLAND
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Table 9
Governmental Activities
General Total
Fiscal Obligation Notes Capital Governmental
Year Bonds Payable Leases Activities
2002 $ 55,490,000 $ 593,840 $ - $ 56,083,840
2003 52,800,000 457,912 - 53,257,912
2004 62,467,858 3,245,500 114,331 65,827,689
2005 60,689,541 684,000 - 61,373,541
2006 56,890,501 622,500 - 57,513,001
2007 75,938,286 561,000 248,460 76,747,746
2008 70,752,345 822,617 202,978 71,777,940
2009 65,420,921 913,183 155,482 66,489,586
2010 88,859,439 1,652,082 105,884 90,617,405
2011 103,569,858 1,070,632 54,089 104,694,579
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)
2002 $ 7,825,000 $ 6,912,388 $ - $ 14,737,388 $ 70,821,228 4.85% $ 1,707
2003 6,865,000 6,402,363 - 13,267,363 66,525,275 4.27% 1,584
2004 5,825,000 5,879,764 - 11,704,764 77,532,453 4.90% 1,789
2005 5,383,663 5,343,775 - 10,727,438 72,100,979 4.50% 1,624
2006 4,943,663 14,580,581 - 19,524,244 77,037,245 6.91% 1,695
2007 4,608,851 22,516,916 - 27,125,767 103,873,513 5.58% 2,246
2008 4,094,485 21,058,076 - 25,152,561 96,930,501 4.82% 2,024
2009 3,573,768 19,624,863 - 23,198,631 89,688,217 4.24% 1,905
2010 3,535,182 18,166,367 - 21,701,549 112,318,954 6.52% 2,309
2011 3,523,333 16,692,171 - 20,215,504 124,910,083 7.25% 2,608
NOTES:
* Amounts for 2002 represent debt relating to total governmental funds (from the General Long-Term
Obligations Account Group) and total enterprise funds, since the reporting of governmental activities and
business-type activities in government-wide financial statements was implemented in FY03.
(1) See Table 14 for personal income and population data, which are used in calculating these ratios.
- 194 -

QUEEN ANNE'S COUNTY, MARYLAND
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Table 10
Percentage of
Fiscal General Total Taxable Per
Year Bonded Debt (1) Assessable Base (2) Capita (3)
2002 $ 63,315,000 1.88% $ 1,526
2003 59,665,000 1.63% 1,421
2004 68,292,858 1.69% 1,575
2005 66,073,204 1.44% 1,488
2006 61,834,164 1.22% 1,360
2007 80,547,137 1.41% 1,742
2008 74,846,830 1.17% 1,563
2009 68,994,689 0.97% 1,465
2010 92,394,621 1.22% 1,899
2011 107,093,191 1.38% 2,236
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.
- 195 -

QUEEN ANNE'S COUNTY, MARYLAND
COMPUTATION OF NET DIRECT AND OVERLAPPING DEBT
AS OF JUNE 30, 2011
Table 11
Name of Jurisdiction Gross Debt
Queen Anne's County:
County Government
Total Net Direct Debt (1) $ 1 24,910,083
Towns: (2)
Centreville 11,817,183
Millington 1,310,340
Queenstown 284,274
Sudlersville 2,138,000
Total Net Overlapping Debt 15,549,797
Total Net Direct and Overlapping Debt $ 1 40,459,880
NOTES:
(1) Net direct debt of the County includes general obligation bonds, notes payable, and capital leases. See Table 9.
Overlapping debt is the debt of other governmental entities located within the County that is
payable in whole or in part by taxpayers of the County.
(2) Entities are located wholly within Queen Anne's County. Debt information reported by municipalities.
- 197 -

QUEEN ANNE'S COUNTY, MARYLAND
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
2002 2003 2004
Computation of Legal Debt Margin - for Queen Anne's County
Other than Debt related to the Sanitary District:
Authorized debt limit under Title 5 (Subtitle 4) (1) $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000
Authorized bonded debt under specific public laws
Enterprise Funds, excluding Sanitary District (4) 1 ,625,000 1 ,535,000 1 ,440,000
General Obligation Debt (4) 5 5,490,000 5 2,800,000 6 2,467,858
Subtotal 5 7,115,000 5 4,335,000 6 3,907,858
Total authorized debt under Title 5 and specific public laws 6 5,115,000 6 2,335,000 7 1,907,858
LESS Outstanding bonds, notes payable, and capital leases (5) 7 0,508,807 6 6,266,872 7 7,328,067
Less: Sanitary District debt (4) 1 2,731,829 1 1,412,635 1 0,005,867
Subtotal 5 7,776,978 5 4,854,237 6 7,322,200
Legal Debt Margin - Other than the Sanitary District $ 7 ,338,022 $ 7 ,480,763 $ 4 ,585,658
Debt related to the Sanitary District Proprietary Fund:
Total taxable assessed value (3) $ 3,369,796,979 $ 3,651,023,515 $ 4,039,049,012
Plus exempt property (3) 274,858,885 276,953,744 297,843,389
Total assessed value $ 3,644,655,864 $ 3,927,977,259 $ 4,336,892,401
Debt Limit - 6% of total assessed value (2) $ 218,679,352 $ 235,678,636 $ 260,213,544
LESS Sanitary District 1 2,731,829 1 1,412,635 1 0,005,867
Less: Restricted Cash and Investments in the
Debt Service Fund available for payment of principal 5 ,141,449 4 ,264,878 4 ,289,452
7 ,590,380 7 ,147,757 5 ,716,415
Legal Debt Margin - Sanitary District $ 211,088,972 $ 228,530,879 $ 254,497,129
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 Table 9.
- 198 -

QUEEN ANNE'S COUNTY, MARYLAND
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Table 12-a
(CONTINUED)
2005 2006 2007 2008 2009 2010 2011
$ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8 ,000,000 $ 8,000,000
1 ,413,663 1 ,413,663 1 ,538,851 1 ,509,485 1 ,493,768 1,905,182 2,378,333
6 0,689,541 5 6,890,501 7 5,938,286 7 0,752,345 6 5,420,921 8 8,859,439 1 03,569,858
6 2,103,204 5 8,304,164 7 7,477,137 7 2,261,830 6 6,914,689 9 0,764,621 1 05,948,191
7 0,103,204 6 6,304,164 8 5,477,137 8 0,261,830 7 4,914,689 9 8,764,621 1 13,948,191
7 2,100,979 7 7,037,245 103,625,053 9 6,727,523 8 9,688,217 1 12,318,954 1 24,910,083
9 ,266,078 1 8,069,698 2 5,552,847 2 3,615,821 2 1,684,421 1 9,782,739 1 7,830,357
6 2,834,901 5 8,967,547 7 8,072,206 7 3,111,702 6 8,003,796 9 2,536,215 1 07,079,726
$ 7 ,268,303 $ 7 ,336,617 $ 7 ,404,931 $ 7 ,150,128 $ 6 ,910,893 $ 6 ,228,406 $ 6,868,465
$ 4,596,665,870 $ 5,061,055,866 $ 5,693,764,229 $ 6,398,550,545 $ 7,083,072,750 $ 7,580,931,277 $ 7,740,096,715
330,840,259 369,542,935 419,303,486 474,798,401 547,163,868 5 96,219,654 6 44,654,739
$ 4,927,506,129 $ 5,430,598,801 $ 6,113,067,715 $ 6,873,348,946 $ 7,630,236,618 $ 8,177,150,931 $ 8,384,751,454
$ 295,650,368 $ 325,835,928 $ 366,784,063 $ 412,400,937 $ 457,814,197 $ 4 90,629,056 $ 5 03,085,087
9 ,266,078 1 8,069,698 2 5,552,847 2 3,615,821 2 1,684,421 1 9,782,739 1 7,830,357
4 ,105,842 3 ,940,626 4 ,746,865 4 ,551,821 4 ,180,188 3,925,026 3,658,194
5 ,160,236 1 4,129,072 2 0,805,982 1 9,064,000 1 7,504,233 1 5,857,713 1 4,172,163
$ 290,490,132 $ 311,706,856 $ 345,978,081 $ 393,336,937 $ 440,309,964 $ 4 74,771,343 $ 4 88,912,924
- 199 -

QUEEN ANNE'S COUNTY, MARYLAND
COMPUTATION OF LOCAL DEBT LIMIT
LAST THREE 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. 09-13, as adopted August, 2009.
CALCULATION PER FIRST FINANCIAL CRITERIA:
The sum of all outstanding and new general obligation and/or
bonded debt is 2.5% or less of the total taxable assessed base.
Total Taxable Assessed Base (1) $ 7,083,072,750 $ 7,580,931,277 $ 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 $ 23,198,631 $ 21,701,549 $ 20,215,504
General Obligation Debt - Bonds and Notes 66,334,104 90,511,521 104,640,490
Total Outstanding and New General Obligation Debt $ 89,532,735 $ 112,213,070 $ 124,855,994
2.5% of Total Taxable Assessed Base in Excess of
Total Outstanding and New General Obligation Debt $ 87,544,084 $ 77,310,212 $ 68,646,424
CALCULATION PER SECOND FINANCIAL CRITERIA:
The sum of all outstanding and new general obligation and/or
bonded debt is $3,000 or less per capita.
Total County Population (4) 47,091 48,650 47,899
$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) $ 89,532,735 $ 112,213,070 $ 124,855,994
$3,000 Per Capita in Excess of
Total Outstanding and New General Obligation Debt $ 51,740,265 $ 33,736,930 $ 18,841,006
NOTES:
(1) See Table 5 - Total Taxable Assessed Value.
(2) See Note 9 A - Changes in Noncurrent Liabilities.
(3) General Obligation Debt includes debt relating to the Sanitary District, because such debt is backed by the full faith
and credit of the County, but excludes all capital leases, which are collateralized by the equipment purchased with
such leases.
(4) See Table 14 - Population.
In August, 2009, as described in Note 9 F, Queen Anne’s County adopted Resolution No. 09-13, thereby establishing
a local debt policy in compliance with Article 95, Section 22F of the Annotated Code of Maryland. For comparative
purposes, this policy has been calculated retroactively for FY09 data, as well as for FY10 data.
This policy requires that the County’s Director of Budget and Finance take the following steps:
(a) prepare a five-year capital project plan each year;
(b) propose an amount to be transferred from the General Fund operating balance to the General Capital Projects
Fund to serve as pay-as-you-go funding in the latter Fund, in order to lessen the need for future County debt;
(c) limit the County’s non-bonded indebtedness to $8.0 million for general operating expenses or capital
improvements;
(d) certify that the sum of outstanding general bonded debt and any new general obligation debt is 2.5% or less
of the total taxable assessed base and is $3,000 or less per capita; and
(e) review and revise this Debt Policy as necessary, but no later than September 1, 2012.
- 200 -

QUEEN ANNE'S COUNTY, MARYLAND
PRINCIPAL EMPLOYERS
CURRENT FISCAL YEAR AND NINE YEARS AGO
Table 13
For the Fiscal Year Ended June 30, 2011
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 941 1 8.92%
Queen Anne's County Government 442 2 4.19%
S.E.W. Friel 275 3 2.61%
Paul Reed Smith Guitars 233 4 2.21%
Chesapeake College 225 5 2.13%
Safeway 180 6 1.71%
River Plantation 175 7 1.66%
Genesis Healthcare 150 8 1.42%
Harris Seafood Company 150 9 1.42%
Acme Markets 149 10 1.41%
Total 2,920 27.68%
For the Fiscal Year Ended June 30, 2002
Percentage of
Total County
Employer Employees Rank Employment
Queen Anne's County Board of Education 8 37 1 8.96%
Queen Anne's County Government 4 49 2 4.81%
S.E.W. Friel 2 75 3 2.95%
Chesapeake College 2 00 4 2.14%
Paul Reed Smith Guitars 1 77 5 1.90%
Delmarva Sash & Door, Inc. 1 50 6 1.61%
Sisk Mailing Service 1 45 7 1.55%
Conagra 1 31 8 1.40%
Tidewater Publishing Corp. 1 30 9 1.39%
United Shellfish Co, Inc. 65 10 0.70%
Total 2,559 27.41%
Source: Queen Anne's County Economic Development Office; Table 15.
- 201 -

QUEEN ANNE'S COUNTY, MARYLAND
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Table 14
Average
Total Registered
Fiscal Personal Per Capita Unemployment Number of
Year Population (1) Income (2) Income (3) Rate (3) Pupils (4)
2002 41,500 1,459,638,000 35,172 3.30% 7,266
2003 42,000 1,558,032,000 37,096 3.50% 7,457
2004 43,350 1,582,275,000 36,500 3.10% 7,530
2005 44,392 1,601,707,752 36,081 3.50% 7,649
2006 45,450 1,114,661,250 24,525 3.50% 7,162
2007 46,241 1,861,755,142 40,262 3.50% 7,774
2008 47,886 2,009,392,332 41,962 4.00% 7,790
2009 47,091 2,113,538,262 44,882 6.70% 7,774
2010 48,650 1,721,674,850 35,389 6.50% 7,723
2011 47,899 1,722,448,040 35,960 7.00% 7,722
NOTES:
(1) Source: Queen Anne's County Division of Land Use and Zoning
(2) Personal income derived by multiplying population by per capita income.
(3) Source: Maryland Department of Business and Economic Development
(4) Source: Queen Anne's County Board of Education.
- 202 -

QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME EQUIVALENTS
LAST TEN FISCAL YEARS
Table 15
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Number of Exempt Employees 3 1 3 3 3 3 3 5 3 5 3 6 3 1 29 29 26
Number of Full Time Employees 394 399 413 420 432 470 4 81 475 461 406
Number of Part Time Employees (FTE) 2 4 2 9 2 1 2 1 2 3 2 5 2 0 18 17 10
Total County Government Employees 449 461 467 476 490 531 5 32 522 507 442
NOTES:
Source: Queen Anne's County Finance Office.
- 204 -

QUEEN ANNE'S COUNTY, MARYLAND
COUNTY GOVERNMENT EMPLOYEES - FULL-TIME ONLY BY FUNCTION
LAST FIVE FISCAL YEARS
Table 16
2007 2008 2009 2010 2011
Governmental Activities:
General Government 90 90 89 87 77
Public Safety:
Police 49 53 52 50 49
Fire - Emergency Management Services 69 68 69 67 64
Corrections 37 38 42 42 41
Animal Services 11 11 8 8 10
Public Works 87 91 85 79 61
Health 1 1 1 1 1
Social Services 40 38 38 37 32
Parks (1) 39 40 38 38 20
Conservation of Natural Resources 3 3 3 3 3
Economic/Community Development 12 12 10 9 7
Total Governmental Activities 438 445 435 421 365
Business-Type Activities:
Sanitary District 47 46 45 45 44
Bay Bridge Airport 3 3 3 3 3
Recreation (1) - - - - 4
Public Landings 3 3 3 3 3
Property Management 5 4 7 7 7
Total Business-Type Activities 58 56 58 58 61
Component Unit:
Public Housing Authority 10 11 11 11 6
Total Full-Time County Employees 506 512 504 490 432
NOTES:
(1) Due to the County's reorganization, Parks and Recreation are reported separately starting in fiscal year 2011.
Only full-time County employees are represented in this Table; data relating to full-time equivalents
for part-time employees is not available at this time.
County employees include the Public Housing Authority but exclude other component units. Therefore,
no employees are listed for the Education or Library functions, which relate to the Board of Education
and the Queen Anne's County Free Library component units, respectively.
As data becomes available in future years, this Table will be updated to include data for up to ten fiscal years.
Source: Queen Anne's County Finance Office.
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QUEEN ANNE'S COUNTY, MARYLAND
OPERATING INFORMATION
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Table 17
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Governmental Activities:
General Government:
Planning & Zoning:
Number of commercial permits issued 118 219 295 2 72 256 235 2 3 40 35 27
Number of residential permits issued:
Single Family Permits 406 326 271 2 47 224 160 1 38 90 153 106
Multi Family Permits 1 6 3 6 - 1 - - - 13 28 4
Renovations and Additions Permits 550 678 745 6 80 608 541 5 39 324 304 295
Total residential permits issued 972 1,040 1,016 9 28 832 701 6 77 427 485 405
Public Safety:
Fire and Rescue:
Number of volunteer members 577 650 649 6 30 630 600 6 63 663 689 689
Police:
Uniformed Police Officers 4 2 4 7 5 0 4 9 4 9 4 9 5 3 54 54 55
Number of law violations:
Physical arrests 987 1,021 1,112 1,536 1,115 1,413 1,373 1,429 917 1,216
Traffic violations 1,904 2,322 4,363 5,307 4,962 5,310 5,745 8,276 6,183 5,760
Detention Center:
Detention Center Officers 2 9 2 9 3 2 3 0 3 1 3 3 3 5 37 39 40
Average yearly prison population 8 0 9 2 9 2 9 6 99 113 1 12 97 102 103
Public Works:
Wastewater Treated - Daily (mgd) 1 .5 1 .6 1 .5 1 .5 1 .5 1 .5 1 .6 1.7 2.1 1.7
Education:
Number of Personnel
Teachers 447 458 459 4 79 496 501 5 22 528 533 530
Administrators 4 1 3 9 3 9 3 9 3 9 4 0 4 0 38 37 37
Support 303 303 302 3 21 318 327 3 38 338 336 310
Other 4 6 4 6 4 3 5 3 5 9 5 5 7 7 76 76 64
Number of Students 7,266 7,457 7,530 7,649 7,162 7,774 7,790 7,774 7,723 7,722
Number of High School Graduates N/A N/A N/A N/A 514 563 5 60 590 562 566
NOTES:
N/A - Data not readily available, or not available in a manner consistent with this display.
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
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Governmental Activities:
Public Safety:
Fire and Rescue:
Number of volunteer stations 9 9 9 1 0 10 10 1 0 10 10 10
Equipment:
Engines 1 7 1 3 1 6 1 7 17 16 1 6 16 17 17
Tankers 8 8 7 7 7 9 9 9 9 9
Aerial Units 4 3 4 4 4 4 4 4 5 5
Rescue Units 4 5 5 5 5 5 6 6 7 7
Brush Units 8 7 7 7 7 8 8 8 8 8
Air Units (MD State Police) 1 8 8 1 1 1 3 3 - -
Boats 6 5 5 5 5 3 1 1 5 5
Ambulance/Medic Units 2 1 1 5 1 5 1 5 18 20 1 6 16 17 17
Cars/Other 1 9 1 5 2 0 2 0 20 16 1 7 17 22 22
Police:
Number of Stations 1 1 1 1 1 1 1 1 1 1
Number of Vehicles
Patrol 3 8 4 8 5 8 4 3 3 4 5 4 5 7 64 60 53
Other 8 2 1 6 1 5 2 6 1 5 7 13 17 21
Detention Center
Capacity 104 104 104 104 104 104 1 04 104 148 148
Public Works:
County Maintained Roads and Streets
Paved (miles) 510 524 522 524 534 536 5 30 539 540 540
Unpaved (miles) 2 4 1 2 1 3 1 3 1 3 1 2 1 5 12 12 12
County Owned Water and
Wastewater Facilities
Water
Miles of Mains 3 8 3 8 4 7 4 7 4 9 5 1 5 6 57 58 59
Water Treatment Plants 1 0 1 0 1 0 1 0 1 0 1 0 1 1 11 11 11
Booster Stations 3 2 2 2 2 2 2 2 2 2
Wastewater
Miles of Mains 9 6 9 7 105 105 107 109 1 14 116 117 118
Wastewater Treatment Plants 1 1 1 1 1 1 1 1 1 1
Wastewater Collection, Lift,
and Pumping Stations 2 8 2 8 2 9 2 9 2 9 2 9 3 1 31 31 31
Education:
Number of Schools
High Schools 2 2 2 2 2 2 2 2 2 2
Middle Schools 3 3 3 3 3 3 3 4 4 4
Elementary Schools 7 7 7 8 8 8 8 8 8 8
Parks and Recreation:
Parks 2 4 2 4 2 4 2 4 2 8 2 9 3 2 33 33 33
Park Acreage 1,902 2,022 2,024 2,024 2,579 2,572 2,633 2,633 2,915 2,915
Public Landings 2 2 2 2 2 2 2 1 2 1 2 1 2 1 20 20 21
Library:
Number of Libraries 3 3 3 3 3 3 3 3 3 3
NOTES:
Source: Various County departments.
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