The Charles County Commissioners meeting on Thursday got a mixed bag of financial information about the status of the current year’s operating budget. Director of Fiscal and Administrative Services Deborah Hudson presented the information as part of the commissioners’ ongoing budget discussion.
Figures presented Thursday show a net operating loss for the current fiscal year of $809,210. The biggest culprit was snow removal. The commissioners budgeted a lean $381,300 and so far during the current fiscal year have spent $1,318,200 for snow removal. Hudson explained that in previous years the commissioners budgeted a low amount and if need be took any additional funding out of their reserve account. But that account, because of the county’s tight fiscal situation, was also budgeted lean this year.
There is enough, however, to cover that expected operating loss. The beginning fund balance this fiscal year was more than $41 million of the overall $306 million budget. That fund balance is expected to be down to $32 million at the end of this fiscal year on June 30.
According to the figures presented by Hudson, $8.5 million will be reserved for various budget items for next fiscal year, and an eight percent reserve ($23.8 million) required by bond rating agencies, will also be set aside. That will leave just under a half million available for the new budget.
Property tax revenues are coming in slightly below budgeted (about $600,000 less), a reflection of the depressed real estate market. But that is more than offset by an increase in income taxes over the amount budgeted (almost $1.5 million).
Based on a recent decision by the commissioners prohibiting media contact with county employees, The Baynet was not able to talk to Hudson. However the county’s media office did provide the following timeline of the county commissioners’ budget process:
· February – Capital Improvements Program – 5-year plan
· March – Enterprise Fund Reviews (includes their CIP portion). Inspection, Landfill, Recreation, Water & Sewer
· April/May – General Fund Review & Fees & Charges
· May 25th (tentative) – Public Hearing on Constant Yield & 2012 Budget
· June 15th (tentative) – General fund tax rate adoption & Budget adoption of all funds
