1. Talbot County, Maryland FY 2016 Budget Introduction April 14, 2015 FY 2016 Proposed General Fund Budget $78,640,000

2. Talbot County, Maryland FY 2016 Proposed Budget Budget Overview The County Council received funding requests for Operating and Capital Outlay of $83,120,897, which is $8.5 million dollars more than the current FY2015 budget, or an approximate 11% increase. This budget reflects an increase of 5.38% over the current General Fund Budget. Great effort was taken in its development, which strikes a balance between real needs and continuing to maintain two of the lowest tax rates in the state.

3. Property Tax Rates FY 2016 Proposed Budget

4. Income Tax Rates FY 2016 Proposed Budget

5. Talbot County, Maryland FY 2016 Proposed Budget Budget Overview The following priorities were used in providing funding with the limited resources available, to address “Real Needs” through the budget prioritization process: Public Safety and Health (Personnel, Equipment, Buildings) Infrastructure (Roads, Buildings, and Emergency Communications) Public School Education (Maintenance of Effort and Infrastructure)

6. Talbot County, Maryland FY 2016 Proposed Budget Budget Overview The challenging fiscal landscape over the past several years has necessitated the development of partnerships, which has led to the use of funding sources other than County tax dollars. Examples include: Partnering with the State of Maryland in the upcoming use of a statewide radio communications system Engaging in partnerships with private foundations, organizations, and individuals to provide funding for programs and equipment Building coalitions and partnerships to leverage millions of dollars in grant funds to support innovative environmental projects and alternative energy solutions. For example:

7. Talbot County, Maryland FY 2016 Proposed Budget Budget Overview $4.5 million in grant funding from the Bay Restoration Fund for upgrading of 408 septic systems for enhanced nitrogen removal $40,000 in grant funding through the National Fish and Wildlife Federation for development of Mini Watershed Improvement Programs (WIPS) for Talbot County municipalities $2.1 million in grant funding from the Chesapeake Bay Trust Fund for ditch bioretention systems and related initiatives $220,000 in grant funding through the Governor’s Stream Challenge to plant 17 acres of trees Applying for a 2016 Chesapeake Bay Trust Fund grant in the amount of $1,000,000 for Urban Stormwater Management projects

8. Talbot County, Maryland FY 2016 Proposed Budget Budget Highlights 7 full time positions added in Public Safety 2 additional Sheriff’s Deputy positions 2 additional Correctional Officer positions 2 additional EMT positions 1 additional 911 Dispatch Operator position Full funding of the Volunteer Fire Departments New Debt Service for the Emergency Radio System Transfer of $1 million to the Other Post Employments Benefits Trust (OPEB) Continued funding for County Roads maintenance (approximately 43.1 miles to be resurfaced) Continuation of Funding for Capital Projects

9. Talbot County, Maryland FY 2016 Proposed Budget Budget Highlights Step increase effective January 1, 2016 for full time County employees All employee benefits are budgeted in their departments in this Budget. This will provide a more accurate accounting of the operation cost of all County departments Talbot County Public Schools operations funded at required level (MOE), an increase of $582,667 from FY 2015, funding for School employees pension increased by $150,321 from FY 2015 plus an additional $60,000 in FY 2016 for programs not included in maintenance of effort County funds will provide for over 74% of the Public Schools base operating budget, as well as an additional $3 million in debt service

10. Property Taxes$ 34,177,500$ 34,924,5002.2% Revenues FY 2016 Proposed Budget FY 2015 Budget FY 2016 Proposed Change Totals$ 74,625,000$ 78,640,0005.38% Income Taxes$ 26,600,000$ 28,000,0005.3% Other Local Taxes$ 9,168,000$ 9,697,000 5.8% State/Federal Grants$ 1,556,365$ 1,596,0102.5% Other Operating Revenues $3,123,135$ 2,920,2406.5% Transfer from Other Funds$ 0$212,250 Prior Year’s Fund Balance$ 0$ 1,290,000 100%

11. General Fund Revenues FY 2016 Proposed Budget

12. Expenditures FY 2016 Proposed Budget FY 2015 Budget FY 2016 Proposed Change Public Safety $ 13,088,617$ 15,490,90118.35% County Roads Maintenance$ 2,669,865$ 2,667,114-.10% Health Services (Includes School Health) $ 2,299,650$ 2,408,3004.72% Library$ 1,111,700$ 1,204,5698.35% Public Schools $ 38,710,052$ 39,503,3192.05% Chesapeake College$ 1,785,323$ 1,748,983-2.04% Other County Operations $ 14,959,793$ 14,616,814-2.29% Transfer to OPEB Trust$ 1,000,000100% Totals$74,625,000$78,640,0005.38%

13. General Fund Expenditures FY 2016 Proposed Budget

14. Fund Balance FY 2016 Proposed Budget General Fund Balance as of June 30, 2013$18.7 million Retiree Health Obligation (OPEB)-2.0 million Emergency Reserve ("Rainy Day")-10.7 million Discretionary Balance 06/30/2013$6.0 million FY 2015 transfer to Emergency Reserve ("Rainy Day")-.2 million FY 2014 Surplus+3.9 million Discretionary Balance 06/30/2014$9.7 million FY 2015 transfer to Emergency Reserve ("Rainy Day")-.4 million FY 2015 Projected Surplus+3.0 million Projected Discretionary Balance 06/30/2015$12.3 million Retiree Health Obligation (OPEB)-1.0 million Needed to Balance FY 2016 Budget-.3 million Remaining Balance for FY 2017 & Beyond$11.0 million

15. Talbot County, Maryland FY 2016 Proposed Budget Capital Projects Fund Proposed Projects County Facilities Operations Center Expansion - 911 Center $ 2,595,000 Waterways & Wharves Public Landings Maintenance Program 50,000 Tunis Mills Bridge Landing 100,000 Highways & Streets Goldsborough Neck/Airport Road 280,000 Culvert Replacement Program 50,000 Water Quality Improvement Project 100,000 Parks & Recreation Oxford Road Park - Park Development 295,000

16. Talbot County, Maryland FY 2016 Proposed Budget Capital Projects Fund Proposed Projects Public Schools One - to - One Laptops 200,000 Moton School Roof - Replacement 450,000 White Marsh - Portable Classrooms 115,559 Moton School - Feasibility Study 80,190 Total Proposed FY 2016 Capital Projects 4,315,749

17. Talbot County, Maryland FY 2016 Proposed Budget Budget Recap Public Safety is the highest priority in this Budget: Additional Public Safety Staffing and Resources Full funding of the Volunteer Fire Departments New Debt Service for Emergency Radio System +968K Continued investment in County Facilities and Infrastructure Increase in MOE funding for public schools of +$582K Increase in funding for public school pensions of +150K New funding for expenses not included in MOE of +60K Continued funding for County’s obligation to retirees +1M Increase in funding for environmental initiatives

18. Health, Safety and Welfare Economic Stability Education Environment and Shoreline Protection Infrastructure “Building a Resilient Community Today - for Tomorrow” Talbot County, Maryland

19. Health, Safety and Welfare Economic Stability Infrastructure EducationEnvironment and Shoreline Protection Emergency ServicesEconomic Development AirportBoard of Education Public Works SheriffTourismRoadsChesapeake College Planning & Zoning CorrectionsFinancePublic WorksParks & Recreation State’s AttorneyFacilities Maintenance County AttorneyInformation Technology Permits & Inspections Government Admin

20. Health, Safety and Welfare Economic Stability Infrastructure EducationEnvironment and Shoreline Protection Emergency ServicesEconomic DevelopmentAirportBoard of EducationPublic Works 50% SheriffTourismRoadsChesapeake CollegePlanning & Zoning CorrectionsFinancePublic Works 50%Parks & Recreation State’s AttorneyAssessment OfficeFacilities MaintenanceAgricultural Extension County AttorneyTransportationInformation Technology Permits & InspectionsDebt Service Government AdminAssessment Office Circuit Court Social Services Election Board Upper Shore Aging Liquor Board Health Department Vol. Fire Departments Library Animal Control Mosquito Control Crossing Guards

21. Talbot County, Maryland FY 2016 Proposed Budget Talbot County Public Hearings on the FY 2016 Proposed Budget: Tuesday, May 5, 20152:00 pm Bradley Meeting Room 7:00 pm Easton High School Cafeteria For more information on the FY 2016 Proposed Budget (Bill No. 1303) Visit Our Website: www.talbotcountymd.gov