This week’s fiscal year 2013 budget discussions have brought good news for St. Mary’s County in an otherwise gloomy economy. The local economy has fared better than expected. As a result county savings reserved for unanticipated expenses total $30 million, according to the fiscal year 2011 audit, reviewed by the Board of County Commissioners this week.
St. Mary’s County entered the current fiscal year with a fund balance of $11.8 million. Those undesignated funds are reserved for unplanned expenses, such as the cleanup following Hurricane Irene in August. Commissioners tapped $3 million in unreserved funds to complete recovery activities.
Recently Fitch Ratings affirmed St. Mary’s County’s AA+ bond rating pointing to the county’s “maintenance of sound reserves and financial flexibility despite revenue softening; careful management of its capital program spending and issuance of debt.”
While property tax collections remained flat the county anticipated income tax revenues to be $60 million for the current fiscal year. But revenues actually came in nearly $12 million over estimates.
“We have to take that with a grain of salt,” said John Savich, St. Mary’s County Administrator. “While the numbers look good for us, the state can come back later and say the amount distributed to you was too high and then make a downward correction next year,” he cautioned.
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