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Commissioners weigh fund-balance trades to cover school shortfalls, boost revolving loan fund and preserve public-safety reserves
Summary
At a May 5 budget workshop, St. Mary's County commissioners discussed using unassigned fund balance and shifting CIP dollars to cover school funding gaps, expand the revolving fire-and-rescue loan fund, and address LOSAP benefit increases; staff presented models showing roughly $1.36M available for appeals after proposed adjustments.
County CFO Spinetta Van Clee presented a revised budget model that incorporated paying off exempt financing, restoring $200,000 to the snow reserve and layering in proposed operating adjustments. The pivoted model showed roughly $1.36 million of discretionary resources available for allocation to appeals and capital requests, depending on which options commissioners select.
Commissioners discussed three principal choices: (1) use unassigned fund balance to pay down exempt financing to create recurring savings; (2) reallocate transfer-tax or bond/PAYGO CIP dollars (including a possible delay or re-scope of $2.6 million in A&E for the Sheriff's Headquarters); and (3) increase the revolving fire-and-rescue loan policy limits (staff proposed drafting policy for a $3 million building renovation loan limit and $2 million equipment/apparatus limit).
On LOSAP (the emergency services support enterprise fund), the LOSAP board recommended increasing the benefit at age 60 to $500 and the actuarial employer contribution scenarios were tabled for commissioner consideration. Commissioners reached a consensus to continue benefit payments out of the enterprise fund for FY27 with the LOSAP trust reimbursing the county this year, and to prioritize trust contributions next year.
Other points: the Board heard that some requested fire/rescue loans include refinancing of commercial loans to the county rate; commissioners expressed support for consolidating duplicate liens where practicable. Staff also noted a planned bond issuance of about $60 million to reimburse county funds already expended on capital projects.
Next steps: finance staff will return with updated CIP and operating models, draft policy language for revised fire-and-rescue loan limits, and options for funding Chocticon and the revolving loan fund. Commissioners set a May 12 meeting to finalize these budget decisions.
Why it matters: these trade-offs determine whether the county covers recurring personnel and service costs with one-time fund balance or reassigns long-term capital funding, decisions that affect reserves, service levels and future bonding needs.
