The Board of County Commissioners for St. Mary’s County on May 26 approved the county’s fiscal year 2010 budget and related revenue and appropriation ordinances, keeping property and income tax rates at 2009 levels.

"The end result is the $199,300,000 budget," County Chief Financial Officer Elaine Kramer said during the presentation, summarizing staff recommendations that rely on $195.2 million in revenues and $4.1 million in fund balance.

The budget keeps property tax and energy tax rates unchanged from FY2009, retains funding priorities for schools and public safety, and uses targeted fund-balance draws to smooth a projected revenue shortfall. Kramer told the board the FY2010 plan includes $3.0 million labeled as revenue replacement, $500,000 for pay-as-you-go capital, and a $600,000 final subsidy; after those uses the county still retains an available fund balance for future years.

Why it matters

The county’s budget sets the operating and capital spending plans for the coming year, and the 2009–10 package reflects adjustments for state revenue reductions and lower near-term income-tax distributions. Keeping the tax rate level preserves predictability for homeowners while using reserve funds to cover lower revenues.

What the board approved

- Revenue ordinance for FY2010 (sets tax rates unchanged from 2009). Motion carried; vote recorded with one opposing vote.
- Appropriation ordinance for FY2010 covering operating, enterprise and capital funds. Motion carried unanimously.
- Final approval of the FY2010 budget and signature of the budget book. Motion carried unanimously.

Votes at a glance — other formal actions taken May 26 (motions, resolutions, contracts)

- Circuit Court budget amendment: approved return of $1,593 from three grant codes (adult drug court MD0942; juvenile drug court MD0925; Family Services MD0920) to the supplemental reserve. Motion carried.
- Resolution to dissolve the Southern Maryland Travel and Tourism Committee and realign regional marketing under the Southern Maryland Heritage Area Consortium; funding realignment to follow FY2010 budget. Motion carried.
- Rental Allowance Program (RAP) first-amendment: approved acceptance of an additional $9,882 from the Maryland Community Development Administration, raising the RAP total to $39,882. Motion carried.
- Board endorsement of an $800,000 Community Development Block Grant application to assist the Housing Authority with sprinkler installation at Greenview Village Apartments and acquisition of Indian Bridge Apartments; motion to sign related certificates carried.
- Memoranda of Understanding and related budget amendment to accept a federal Assistance to Firefighters grant for portable radios (total award $389,995) and to authorize a 20% local match of $77,991 from the BOCC emergency reserve; motion carried.
- Department of Human Services: three FY2009 substance-abuse grant modifications approved (realignment $3,788; a $462 supplement for prevention; a $24,005 year-end treatment increase). All three motions carried.
- Public works agreements: approved new public-works agreements for Laurel Preserve North and South (initial five lots each, expandable to 24) and Woodland Park at Wildwood (90+ single-family, 100+ townhouses; phased Lawrence Hayden Road dedication/extension and signal improvements). Motion carried.
- Memorandum of Understanding with St. Mary’s Home for the Elderly (Cedar Lane): approved a program to reimburse meals under the congregate housing services program for qualifying individuals; motion carried. (Agreement caps and meal-count language as stated in the meeting packet.)
- Leonardtown Library: authorized the county-president to sign a letter of intent and to submit a FY2011 County Library Capital Grants Program application requesting up to $818,000 in state funding; motion carried.
- Metropolitan Commission Task Force appointments: four appointments confirmed; the board deferred one pending a response. Motion carried.

Discussion and context

County staff and commissioners repeatedly cited uncertainty in state distributions and a weak local economy as the reason for drawing fund balance in FY2010. Kramer told the board that revenue stabilization reserves remain in place and that long-term debt metrics used in the capital plan keep the county within targeted ratios.

The sheriff’s office staffing and the possible award of a federal COPS grant were discussed at length; the budget contains placeholder authorization for a potential match, but hiring decisions tied to any grant were left for a later, award-specific approval.

Several commissioners noted the budget’s limits: no cost-of-living adjustment for employees, elimination of eight full-time positions in the county operating budget, continued step/merit increases, and targeted capital borrowing of $30 million in 2010. One commissioner announced during the meeting that they would vote against the revenue ordinance but did not block approval.

Ending

The board adopted the revenue and appropriation ordinances and finalized the FY2010 budget at the May 26 meeting. Multiple grant amendments, MOUs and resolutions were also approved; many require subsequent administrative follow-up to implement. The county will keep monitoring state distributions and plans to use remaining fund balance to smooth near-term revenue volatility.