St. Mary’s County adopts $222.6 million FY2014 budget, holds tax rates steady

The Board of County Commissioners for St. Mary’s County approved the county’s fiscal year 2014 operating and capital budget and set tax rates at its May 28 meeting at the Chesapeake Building.

The 2014 budget approved by the commissioners totals roughly $222.6 million and keeps county property tax rates unchanged. Commissioners said the budget funds a mix of ongoing operations and one-time capital investments, most notably a $10 million-plus commitment to the Spring Ridge Middle School renovation.

County Chief Financial Officer Elaine Kramer summarized the package at the meeting, noting that the budget combines recurring revenue with a planned one-time use of fund balance. Kramer said the county will not sell bonds in FY2014 and instead will use cash and other funding sources for capital needs approved by the commissioners.

Why it matters: The budget funds county operations and capital projects without increasing the tax rate, while preserving an unassigned fund balance to respond to emergencies. Kramer’s presentation shows the county continuing a multi-year practice of using fund balance for one-time capital needs and setting aside funds for post-employment benefits and bond-rating reserves.

Most important facts - Budget totals: roughly $222.6 million for FY2014 (combined operating and capital). - Major capital commitment: more than $10 million for Spring Ridge Middle School renovation. - Tax rates: unchanged from the previous year. - Fund balance: the plan leaves roughly $7,955,353 unassigned for future needs after FY2014 appropriations and planned FY2015 uses. - Reserves: county added $660,000 to bond-rating reserves and kept a $500,000 appropriated emergency reserve.

What commissioners said Commissioner Moolvin, who delivered prepared remarks during the meeting, framed the budget as pragmatic and cautious: “If you do things right, you don't have to raise taxes.” Commissioners noted they chose to cover the Spring Ridge work up front and to continue funding for public safety, schools and retirement-related accounts.

How the vote went Commissioner Cynthia Jones moved approval of the revenue (tax) ordinance, the appropriation ordinance and the detailed budget schedules; Commissioner Todd B. Morgan seconded. The motion passed with one recorded nay. The motion language and formal ordinances were signed following the public session.

Next steps County staff said the final printed budget book will be updated to reflect any late items (for example, final board of education numbers) and posted online. Officials also said they will revisit OPEB (other post-employment benefits) allocations mid-year to determine how to apply planned contributions between the county and the school system.

Ending County officials said the budget preserves service levels while keeping tax rates steady; commissioners stressed continued attention to reserves and the county’s bond rating as fiscal risks and future needs evolve.