The St. Mary's County Board of County Commissioners voted May 19 to realign capital funds and defer a new solid-waste transfer station, returning $7,149,181 to the county FIN09 capital reserve and closing or reducing allocations for specific land-acquisition and site-survey projects.

Finance staff said the move formalized amounts identified as unexpended for FY2009 and would reduce near-term borrowing needs. Miss Kramer, representing the Department of Finance, told the board the adjustments reflect projects postponed or scaled back — including a transfer station move pushed to fiscal 2013 and a soil survey postponed by the state.

The board instructed county staff to perform an in-depth operating-cost analysis before the transfer station project returns to the agenda. Commissioner Raley pressed for a study of likely operating expenses, staffing needs, permit expirations and whether a privatized operation might be cost-effective. County staff responded that an analysis will be performed over the summer and updated going forward, and that the board could reactivate the project sooner if circumstances warrant.

The budget amendment also recognized debt-service savings from delaying planned bond sales in 2009 and adjusted revenue and expenditure lines accordingly. Finance staff explained that delaying bond issuance lowered debt service obligations, which partially offset revenue shortfalls in recordation tax, interest income, and highway-user revenues.

Commissioners debated the prudence of using the revenue stabilization reserve (a 2009 budgeted item) to cover estimated revenue shortfalls. Finance staff presented updated estimates: an expected recordation tax shortfall of approximately $2.5 million, an interest-income shortfall of about $500,000, and an $864,135 shortfall in highway-user revenues; offset by an approximate $1.8 million favorable variance in property-tax collections, yielding a net projected shortfall of about $2,079,295. The board authorized an amendment to reduce the stabilization reserve and to realign revenues and debt-service appropriations to cover the gap.

Commissioner Mattingly moved the capital amendment (return funds to FIN09 capital reserve); the motion passed unanimously. The board then approved a separate amendment reallocating stabilization funds and reducing debt-service allocations as needed to balance FY2009 revenues and expenditures; that motion also passed on a voice vote.

Ending: County staff will return supplemental analyses on transfer station operating costs, permitting timelines, and possible privatization options before the project is reactivated; the capital reserve will hold returned funds while staff completes the required analyses.