Oxford staff outline FY27 general and stormwater budgets, cite $7.5M in long‑term liabilities and new grant‑funded positions

Town of Oxford staff summarized the FY27 general fund and FY27 stormwater/shoreline protection enterprise fund budgets during a work session, saying the introduced budgets were designed to prioritize core municipal services while responding to audit findings.

Staff member said long‑term liabilities across funds total about $7.5 million — including a $2.5 million USDA financing obligation from 2018 — and reported a FY25 general fund net position (assets minus liabilities) of about $1.6 million. The presentation noted that enterprise funds (water/sewer and stormwater) are intended to be self‑supporting and should not subsidize general governmental operations.

The introduced general fund would continue the town tax rate unchanged from FY23 at 0.32 per $100 of assessed value. Staff member explained the county is increasing its rate but budgets a differential for municipalities, leaving Oxford residents’ county portion at about 0.70 per $100 and a combined local rate near 1.02 per $100.

To address audit recommendations and a material weakness noted in recent audit reports, the budget proposes additional accounting and audit capacity, including increased funds for accounting and reconciliation and procurement of code codification software to make town legislation searchable. Staff said the town has roughly $2.8 million in operating cash across funds but cautioned much of that is not immediately usable for large capital needs.

The budget includes two three‑year positions paid through a federal earmark coordinated with NOAA: a research scientist to perform analysis and a grants and communications coordinator to pursue funding and share findings with residents. Staff member said the town reworked a grant previously administered by the University of Maryland so approximately $120,000 in administrative costs over three years would remain in town to cover local administration instead of being paid to the university.

On the stormwater/shoreline protection fund, staff reminded the group that Ordinance 14‑03 (2014) established the fund and the authority to assess a stormwater fee — a fee the commissioners have not enacted. The FY27 stormwater budget as introduced shows revenues matching expenses; staff said ARPA funds and a reallocation of about $20,000 in former dumpster fees are included for capital projects. Staff also proposed adding a $300,000 grant and matching expense as an amendment to support roadway stormwater improvements.

Staff framed the FY27 approach as prioritizing inventory and repair of stormwater infrastructure, improved permitting software, and clearer accounting of benefits and wages by department — changes prompted by the auditor’s efforts to recategorize expenses and show benefits consistently across funds. A public hearing on the introduced budgets is scheduled for next week.

The commissioners did not take a final vote at the work session; staff encouraged continued public engagement and said the budgets will return for formal consideration at upcoming meetings.