Calvert receives praise for FY2009

Audit finds county in ‘good financial condition'

Friday, Feb. 5, 2010

Following a year when revenue drops forced cuts in expenses, independent auditors gave Calvert County high marks for its 2009 fiscal year during a presentation at the Calvert County Board of County Commissioners meeting Tuesday.

The county ended the fiscal year with a $6.7 million deficit, $3.7 million of which was planned after purchasing the Chesapeake Hills Golf Course in Lusby. Revenue shortfalls accounted for the remaining $3 million in deficit, particularly a $5.3 million decrease in income tax revenue. The county cut expenditures by $3 million to help balance the deficit.

Overall, the county's net assets dropped $11.9 million — a $4 million surplus in the business fund, almost entirely due to the golf course, offset a $15.9 million shortage in the general fund. Liabilities for post employment benefits contributed to the general fund deficit.

Despite the shortfalls, auditors commended the county for its ongoing conservative fiscal practices in the face of difficult budget constraints.

"Calvert County is still in good financial condition," said John Crawford of Murphy and Murphy, a La Plata auditing firm.

"Say that nice and loud," Commissioner Barbara Stinnett (D) said.

Property and income taxes, both of which took a hit thanks to the economic recession, are the county's largest sources of revenue — 59 and 25 percent of the total, respectively. The county's largest expenditures come on education and public safety; $122.6 million, or 53 percent of all county expenses, was spent on education last year.

"We do audit some of the neighboring counties and also another county on the Eastern Shore," Crawford said. "Every county has had difficulties meeting their budget, so compared to your neighbors you have certainly done comparable and no worse."

The commissioners were quick to issue credit where it was due.

"We have a staff that has worked very well with us. I think we've acted frugally and they have as well, and very cooperatively," Stinnett said.

"We're in good shape because of the very conservative and practical practices and approaches and recommendations that we get from our finance staff," Commissioner Linda Kelley (R) said. "While we can go out there and get the credit, and we appreciate that by the way, it's certainly due in large part to you. We may make the policy decisions but you're the mechanics where the rubber meets the road."

The audit did not reveal any instances of legal non-compliance or internal control deficiencies, Crawford said.

"We represent different political parties and represent a wide range of personalities, but we do manage to work together to keep this county on very sound financial footing and I'm personally very proud of that," Commissioner Susan Shaw (R) said.

In other business, the commissioners:

ï Agreed unanimously to sale contracts for six easement acquisitions along Boyd's Turn Road. The easements, which will cost a total of $47,800, are necessary to complete safety improvements on the much-traveled road.

When Kelley asked for the acreage of each easement, Shaw pointed out they were listed in very small print on the plats, which had been shrunk to fit in the commissioners' meeting packets. But quick to the rescue, Shaw whipped out a magnifying glass and rattled off the easement's dimensions.

"You know what, they should provide us with magnifying glasses," Stinnett joked. "Over in Charles County, those commissioners get paid more, they get a SUV, they get their gas paid for. We could at least get a magnifying glass out of it."

ï Agreed unanimously to a sale contract for a $2,600 easement acquisition along Armory Road for the future construction of the Prince Frederick loop road, Chesapeake Boulevard.

ï Agreed unanimously to a sale contract for $73,210 in open space in Solomons. The 5.7-acre tract of land will be used for stormwater management as part of the planned expansion of Dowell Road. The property was appraised at $50,000 — the remaining costs will cover engineering services already paid for by the current property owner, county attorney Emanuel Demedis said.

ï Voted unanimously to appoint the following individuals to the Calvert County Census 2010 Complete Count Committee: Don Mueller, president of the Solomons Civic Association; Margaret Fowler, director of community wellness at Calvert Memorial Hospital; Michael Kent of the Calvert County branch of the National Association for the Advancement of Colored People; and Robyn Truslow, community relations coordinator for the Calvert Library. The committee's purpose is to plan local outreach efforts to publicize the 2010 Census and its importance.

ï Voted unanimously to reappoint Frank Radosevic to the Dunkirk Architectural Review Committee.

ï Voted unanimously to appoint Personnel Director Gail Bourdon to the Employees' Retirement Plan Board of Trustees.

jnewman@somdnews.com