HomeMy WebLinkAbout220503aJeffrey A. Cline, President
Terry L. Baker, Vice President
Krista L. Hart, Clerk
BOARD OF COUNTY COMMISSIONERS
May 3, 2022
OPEN SESSION AGENDA
10:00 AM MOMENT OF SILENCE AND PLEDGE OF ALLEGIANCE
CALL TO ORDER, President Jeffrey A. Cline
APPROVAL OF MINUTES: April 26, 2022
10:05 AM COMMISSIONERS’ REPORTS AND COMMENTS
10:15 AM STAFF COMMENTS
10:20 AM CITIZEN PARTICIPATION
10:25 AM PROCLAMATION RECOGNIZING MAY 2022 AS PRESERVATION MONTH
Board of County Commissioners to Meghan Jenkins, Geographic Information Systems
Coordinator, Historic District Commission
10:30 AM PROCLAMATION RECOGNIZING MAY 2022 AS DRUG COURT MONTH
Board of County Commissioners to Jennifer Bricker, Drug Court Coordinator, Circuit
Court for Washington County; Gray Barton, Director, Office of Problem-Solving
Courts; Kristin Grossnickle, Court Administrator, Circuit Court for Washington
County
10:40 AM INTERGOVERNMENTAL COOPERATIVE PURCHASE (INTG-22-0086) COURT
HOUSE SECURITY
Rick Curry, Director, Purchasing; Kristin Grossnickle, Circuit Court Administrator
10:45 AM BID AWARD (PUR-1537) LABORATORY SERVICES FOR WATER
/WASTEWATER TESTING FOR THE DEPARTMENT OF WATER QUALITY
Brandi Naugle, Buyer, Purchasing; Davina Yutzy, Deputy Director, Water Quality
Operations
10:50 AM HOTEL RENTAL TAX FUNDING REQUEST, THE HOUSE ON JONATHAN
STREET DOCUMENTARY
Susan Buchanan, Director, Grant Management; Dan Spedden, Hagerstown
Washington County Convention & Visitor’s Bureau (CVB)
11:00 AM MARYLAND 9-1-1 BOARD – APPROVAL TO SUBMIT APPLICATION AND
ACCEPT AWARDED FUNDING
Brian Albert, Assistant Director, Emergency Communications Center Operations,
Emergency Services; Rachel Souders, Senior Grant Manager, Grant Management
Wayne K. Keefer
Randall E. Wagner
Charles A. Burkett
Page 2 of 2
OPEN Session Agenda
May 3, 2022
Individuals requiring special accommodations are requested to contact the Office of the County Commissioners, 240.313.2200
Voice/TDD, to make arrangements no later than ten (10) working days prior to the meeting.
11:05 AM RANCHO GRANDE, LLC RURAL LEGACY PROGRAM (RLP) EASEMENT
Chris Boggs, Rural Preservation Administrator, Planning & Zoning
11:10 AM COUNTY COMMISSIONERS OF WASHINGTON COUNTY PUBLIC
IMPROVEMENT BONDS OF 2022 AUTHORIZING RESOLUTION
Lindsay A. Rader, Bond Counsel for Washington County; Kelcee Mace, Interim Chief
Financial Officer, Budget and Finance
11:20 AM CLOSED SESSION - (To discuss the appointment, employment, assignment,
promotion, discipline, demotion, compensation, removal, resignation, or performance evaluation of
appointees, employees, or officials over whom this public body has jurisdiction; or any other personnel
matter that affects one or more specific individuals and To consider a matter that concerns the proposal
for a business or industrial organization to locate, expand, or remain in the State.)
12:00 PM RECONVENE IN OPEN SESSION
ADJOURNMENT
Open Session Item
SUBJECT: Preservation Month (May 2022)
PRESENTATION DATE: Tuesday, May 3, 2022
PRESENTATION BY: Board of County Commissioners to Meghan Jenkins, Geographic
Information Systems Coordinator, Historic District Commission
RECOMMENDED MOTION: N/A
REPORT-IN-BRIEF: Proclamation Presentation
WHEREAS, historic preservation is an effective tool for managing growth and sustainable
development, revitalizing neighborhoods, fostering local pride and maintaining community
character while enhancing livability; and
WHEREAS, historic preservation is relevant for communities across the nation, both urban and
rural, and for Americans of all ages, all walks of life and all ethnic backgrounds; and
WHEREAS, it is important to celebrate the role of history in our lives and the contributions
made by dedicated individuals in helping to preserve the tangible aspects of heritage that has
shaped us as a people; and
WHEREAS, the sharing of knowledge between historic trades persons, historians, museums and
citizens is essential for the appreciation and continued existence of historic resources; and
WHEREAS , Historic Preservation is supported by the Washington County Historic District
Commission, Washington County Historical Advisory Committee, and many other state and
local preservation efforts.
THEREFORE, We, the Board of County Commissioners of Washington County, Maryland,
hereby proclaim the month of May 2022, as “Preservation Month” in Washington County and
urge all citizens to join their fellow citizens across the United States in recognizing and
participating in this special observance.
Board of County Commissioners of Washington County, Maryland
Agenda Report Form
Open Session Item
SUBJECT: National Drug Court Month (May 2022)
PRESENTATION DATE: May 3, 2022
PRESENTATION BY: Board of County Commissioners to Jennifer Bricker, Drug Court
Coordinator, Circuit Court for Washington County; Gray Barton, Director, Office of Problem-Solving
Courts; Kristin Grossnickle, Circuit Court Administrator
REPORT-IN-BRIEF: Proclamation Presentation
WHEREAS, treatment courts have been restoring lives and families for more than three decades, and;
WHEREAS, there are now nearly 4,000 treatment courts nationwide, and;
WHEREAS, treatment courts are the cornerstone of justice reform sweeping the nation; and
WHEREAS, treatment courts have served more than 1.5 million individuals, and;
WHEREAS, they are now recognized as the most successful justice system intervention in our nation’s
history, and;
WHEREAS, they save an average of $6,000 for every individual they serve, and;
WHEREAS, treatment courts significantly improve substance use disorder treatment outcomes,
substantially reduce addiction and related crime, and do so at less expense than any other criminal
justice strategy; and
WHEREAS, treatment courts improve education, employment, housing, and financial stability,
promote family reunification, reduce foster care placements, and increase the rate of addicted mothers
delivering babies who are fully drug free; and
WHEREAS, treatment courts facilitate community-wide partnerships, bringing together public safety
and public health; and
WHEREAS, treatment courts demonstrate that when one person rises out of substance use and crime,
we all rise.
NOW THEREFORE, We the Board of County Commissioners of Washington County, Maryland, do
hereby recognize May as Drug Court Month.
Board of County Commissioners of Washington County, Maryland
Agenda Report Form
Open Session Item
SUBJECT: Intergovernmental Cooperative Purchase (INTG-22-0086) Court House Security
PRESENTATION DATE: May 3, 2022
PRESENTATION BY: Rick Curry, CPPO, Director of Purchasing Department and Kristin
Grossnickle, Circuit Court Administrator
RECOMMENDED MOTION: Move to authorize by Resolution, the approval for the Circuit
Court to enter into a contract for the purchase and installation of Tier I (Xray Machine,
Magnetometer, Access Control System, Duress Alarm, Camera System, Audio Visual Intercom)
at a cost of $145,739.68, Tier II (Building Alarm, Bullet Resistant Barriers, Fenced/Restricted
Parking, Prisoner/Sally Port and Tier III - Emergency Intercom) at a cost of $280,624.18 for the
Total Sum in the amount of $426,363.86 from Skyline Technology Solutions, LLC of Glen Burnie,
MD and to utilize another jurisdiction’s contract (RFP No. 49-F-2-18/19) that was awarded by
Carroll County Office of Procurement.
REPORT-IN-BRIEF: On February 24, 2022, the Board of County Commissioners and
Administrative Office of the Courts entered into a MOU to obtain the goods and services of
upgrading the Circuit Court security system. Skyline Technology Solutions, LLC will replace and
upgrade one hundred (100) existing IP cameras and install twenty (25) new IP cameras and replace
Genetec servers and workstations. The vendor will provide and install two (2) video intercom door
stations and two (2) video intercom desk stations and one (1) pedestal at the sally port gate.
The Code of Public Laws of Washington County, Maryland (the Public Local Laws) §1-106.3
provides that the Board of County Commissioners may procure goods and services through a
contract entered into by another governmental entity, in accordance with the terms of the contract,
regardless of whether the County was a party to the original contract. The Carroll County Office
of Procurement took the lead in soliciting the resulting agreement. If the Board of County
Commissioners determines that participation by Washington County would result in cost benefits
or administrative efficiencies, it could approve the purchase of this service in accordance with the
Public Local Laws referenced above by resolving that participation would result in cost benefits
or in administrative efficiencies.
The County will benefit with direct cost savings in the procurement and installation of the security
system because of the economies of scale this group leveraged. I am confident that any bid received
as a result of an independent County solicitation would exceed the spend savings that the Carroll
County Office of Procurement provides through this agreement. Additionally, the County will
Board of County Commissioners of Washington County, Maryland
Agenda Report Form
realize savings through administrative efficiencies as a result of not preparing, soliciting and
evaluating a bid. This savings/cost avoidance would, I believe, be significant.
DISCUSSION: N/A
FISCAL IMPACT: Funds are budgeted in the Circuit Court Capital Improvement Project (CIP)
account GRT509.
CONCURRENCES: Office of Security Administration, Administrative Office of the Courts
ALTERNATIVES: N/A
ATTACHMENTS: Skyline Technology Solutions, LLC Price Quote dated
AUDIO/VISUAL NEEDS: N/A
Skyline Technology Solutions, LLC PROPOSAL
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1, Statement of Work
Skyline Technology Solutions is pleased to provide Washington County Government with a Proposa for the
Genetec CCTV full upgrade and expansion located at Washington County Courthouse, 91-i West Washington
Street, Hagerstown, MD, 21740. Skyline Technology Solutions will complete following Scope of Work based
on Site Survey & Attached Floor Plan. Skyline's understanding„ we will replace and upgrade (100 existing IP
cameras and install (25) new IP cameras. Skyline will replace Washington County Government Genetec
servers and workstations. Skyline will provide new cabling to (25) new camera locations inc tiding up to 1,0M
of conduit for stairwells and other areas. Skyline will provide and install (2) video intercom door station~ and
12) video intercurn desk stations. Skyline will provide and install (1) pedestal at the sally port gate. Second
Archiver added for Failover camera recording.
2. Scope of Work
A Network Coble
Provide, Install, terminate and Test (30) orange Cat6 cables
Re Use existing rack
Provide and install (1) R145 and (1) biscuit box for each Cat6 cable
Provide (1) 10" orange Cat6 patch cable for equtpment end device and (1) l' orange Catb patch cable
for patch panel to switch
8 Video
Provide, Install and Test (2) Axis 18016 video intercom door station
Provide, Install and Test (2) Grandstream GXV3350 video intercom, desk stations
Provide, Install and Test (24) Axis P3245-LV interior 2MP cameras
Provide, install and Test (46) Axis P3247-LV interior 5MP cameras
Provide, install and Test (22) Axis P3247-LVF exterior 5MP cameras (for interior use)
Provide, Install and Test (2) Axis P3248-LV interior 8MP cameras
Provide, Install and Test (23) Axis P3248-LVE exterior 8MP cameras
Provide, Install and Test (1) Axis P3719-PLE multisensory exterior carnera
Provide, install and Test (1) Axis P3807-PVE 180-degree exterior camera
Provide, Install and Test (2) Axis Q6100-E multisensory exterior cameras paired with (2) Axis Q6135-
Printed 10 22 2021 12-- 1? PM ,E 2;1liw`" �S,O,— Page I ,it 7
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SOLUTIONS
LE PTZ cameras
Skyline Technology Solutions, LLC PROPOSAL
( 9t 0-1 'V', ia?I,rn IIot[4 N rtrd
(glenl3unuc N1i)21061
Ph,rne d l n 7tr(�- I t)Ci3
I-:vi 410-766-5771
Proposal tt;
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Dale:
(}'"211021
'herrus:
''et 30 I)aN
Sales Percun:
KetCdra I) t-oHieer
Provide, Install and Test (2) SV-2011EX 961B video recording servers wl RAID 5
Provide, Install and Tert (2) SVW 302ET3 workstations with 32" monitors
Provide, Install and lest (2) Xtreme P91 online 1500VA UPS
Provide, Install and Test (1) 64" Pedestal with polycarbonate housing for Sally Port into*corn
Provide, Install up to 1,000` of conduit and wire rnold
(12S.) cameras will be enrolled into Washington County Government Genetec system
(125) cameras will be set to continuous recording for 30 days
(100) existing Camera licenses will be reused
- (25) new camera licenses will be purchased and applied
5-year Genetec Advantage will be applied at time of installation
Genetec Advantage Renewal will be set and quoted for 5 -years on May 31, 2022, as part of
separate proposal
(4) new Sipelia standard and Advanced licenses will be applied
Genetec Map will be created as part of installation
- Existing Genetec servers will be decommissioned and all data will be transferred to new Genetec
servers.
3. Assumptions
A. General
1. All work can be performed during normal Imsiness hours lam Spin unless otherwise specified in
the Statement of Work
2. Access to workspace will be granted by the customer
3. Parking will be made ava+fable for a minimum of (1) vehicle
4. All outlets, devices and equipment count and/or types are accurate and if any counts exceed quoted
amount and/or equipment needs to change, change order will be provided.
5. Delays that are not caused by Skyline may result in a change order or mobilization fee not to exceed
$1500.00.
6. Delivery dates are dependent on vendor and/or manufacture availability of equipment
7 Fxisting cameras once removed will be giver to Washington County Government.
B. Network Cagle
1. All cable pathway is accessible
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Sk-Oine Technology Solutions, LLC PROPOSAL
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Glen Bumie. ,MO 2 106 1
Phunr; 410-766-1993
Fax, 11 Q-766 77�l
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Date:
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hcrnts:
Net ,il) Days
Sales Person:
Kendra 1) Collier
2. if required for access, patching of drywall will be performed by others
3. If required for access, all core holes will be provided by others f A core bore is any hole that
penetrates the building stab, raised floor, slabs, block walls, or any surface that requires a hamrner or special
drill)
4. All low -voltage boxes and string and/or conduit will be provided by others
5. Fabrication of all raceways and conduits are excluded from proposal unless otherwise stated in the
above State of work
C Video Surveillance
1. All camera views will be verified by end user within (1) business day of project completion
2. Skyline will have remote access before, during and after installation.
3. Skyline assumes customer will replace ceiling tiles it equipment is being dernocied
4. Price includes replacing Genetec servers at Courthouse only
4. Provided by others
A (25) new PoE network ports
B. 4U of available rack space
C. (25) new patch panel ports
D. Skyline will provide a separate Customer Requirements Form (CRF), following proposal acceptanr•e,
detailing items needed prior to equipment being ordered and/or work will be scheduled. Result of not
completing and returning CRF may cause delays in ordering and/or scheduling. Specific items may include but
are not limited to IP address information, power equipment, switch/patch panel ports, etc.
5. Skyline's Standard Practices
A. All Category Cable and/or Fiber will be tested with an approved testing device in compliance with
Industry testing procedures.
8, This design and installation will comply with all federal, state, county and municipal codes and
regulations, the National Electric Code (NEC), National Fire Protection Assn. (NFPA), ANSI/EIA/TIA - 568 & 569
for building telecommunication wiring and pathway.
C All cable, outlets, termination panels and devices will be machine printed labeled using a sequence
to match the floor plan and/or customer provided labeling scheme.
D, All Skyline provided equipment will be tested in our lab before installed at customer location to
reduce RMA's.
E. video Surveillance will comply with standards set forth in the National Electric Code (NEC)
Internet Connection Article 725, requirements for minimum wire sizes, adjustment factors,
overcurrent protection, insulation requirements, wiring methods, and materials.
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Skyline Technology Solutions, LLC PROPOSAL
6166- 1: A\ iition. Boulevard
(An H w-m v Nil) 21061
Phone: 410-766-1993
1 ax: 11004474
Proposal h:
151888
Date:
10,211A
Terms:
Ntg.;o Day,
Sales Person:
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and %hAw" JPF(i, Mot able sernom %ith ckbungalle lenses
Utofoctj-, D'N, I)irectiortil Audio DeWcdom NISRP S1 599 OU -
2?0
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1 sl 02 220 5 lot,
malk susors, providing an ea;). teliabit: and co,1.011cwna
one-cai!iva iwwIlation reducing intallatior, 6111Q, cablinga-f
VMS li,:cnsccosts MSRP St340-OQ-220,,
YXIS P V ITIALF
AXIS PILOPLENdwo&Clara aacmvactl?-inegapixk'I
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camera with filtor varifocal IcFi%e,, (I \ Quad HID) enabling
ovO,,it:v% :Ind detailed sun cillwicc. \k ith one Waddrcss and one
netwo4. cable, the unit pro% itic—i
MSRP $I 599A0 - 22',
AXIS PK ITLVI!
AXM P32M&LVF 6 a day AVV Hwd dome MA IK 10
21 %8572N) SIT71006
vandal -resistant outdoor MAW If has wpyn Or I'mmul 151)R.
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Skyline Technology Solutions, LLC PROPOSAL
6956_f' :Aviation Boule%ard
Gien Burnie MD ? 1061
Pfione. 410 766-1903
Iav 410-766-774
Proposal it: I i888
Dater I i i 071
'Toms: Nct 30 Da; s
Sales Person: kondfa 1) Co1wr
iK 10 karidal-res!vtam indoor casini!. It has support for Forensi,
`.*'DR. Ltchtfinder' 0. inotion-adapmre CXpoStirC Ior mimrmi7ed
motion blur. and OpfimizediR iIItmitrmtion. MSRP $979 t)O - 221n
AXIS 111247-1 V'F.
AXIS P.32471-1,V%L, is a daytnight fixed donic uith Ik 10
yandal-resistant outdoor easing,. It has support for Forensic WDR,
Lrghitmder 2.1.}. motion-adapme exposure for mimmlzed motiait7
blur, and OptimizcdlR illumination. %iSRP S899,00 - 72"0
AXIS I'iZ>I'-i V
AXIS P+247-1 V isad;iy night tileddoiw withdtscrees,dust-and
IK 10 %aandal-resistant indoor' casing, it ha, support ibr ForetiNic
WIN(. Lightfinder'.0. motion-adaptiyc exposurc tOr tninimizcd
.iust,wi blur, and OplimitedlR ilium malion. MS12P S"'?<> 00 --
AXIS Pi 45-L1
I ixed dame frith support for Forensic WDR, Litthtlinder 2,0 and
Opr'iniizedtR illununation
Discrtet- dust- and IK 10 vandal -resistant indoor casin,.i. Aarifocal
3 •1-R.9 nun P-iris fens %kith
rcowte worn and focus simpli'Ning the Itlsiallalion. AISRP
s579oo - 2=°c
AXIS '191 A64 C orncr
Cottiar Bracket. Requires AXIS 191 A61 Walt Hracket. AXIS
1155-series, AXIS t_)60-seriv-s PT! Wme Nctwa?rk (arneras, AXIS
1111 Series Pendant kit. AWN 1'3.3.V E Serie Pendant kit, AXIS
tG Pentiant kit acid ;1 XIS _ I5 Plii) s Per-Oam kit 1l'-fife. kISRP
S79.00 - 2200
AXIS '1 91 D61 Wall 'Mount
Chromated and powder coated aluniinum wnlf mount with I
NI'S thread for tiled dome pendant kits, Cable voijimt from
nehind or through I T' co ndutt hoke i,n the side Ineludea riwwiting
plate, pipe seal ant cnnduit hot e ec,yer. CkAor. White \iSRP
S84.00 - 22'0
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\ISRP S 39.00 - 124.
AXIS '1911-6I
11'ali-attd-Pule 1ltiurt fiir .A�is P1 "l.:tnit multi -Sensor Cameras
Built-in Ethernet cable with an 11166 R145 connector for quick
installation with protection aaainst dust and water Connect Pol.
via either R145 or II )C
MSKI' S99.00 - 22°
AXIS 19-ItiQ 1 i)
VMS 1'9. S01 D Pendant Kit co:uprise, a weathershield and a
mounting adapter for AXiS P1717-111-E Network Camera The
mounting adapter is compatible with 15-irieh NI'S thread
MSRP S89 00 - 22,"
A,.is T94R01 P
Axis 194R01 P Conduit Back Kix
MSRP S34.00 - 22° ;
Axis T941011)
Outdoor pendant kit for AXIS P32-VI- Jeries, compatible ik"ith
Axis ceiling -'wall mounts, AXIS '191AG7 Pole mount and 15
NI'S threaded pipes.
\1SRP S419.00 - 224,,
LANIx)-I'(-2OXIt,-1:-BLK Polycarbonate?Ox)6dousing
Sk}'liric Cost - IWO
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black powder Coated. 12" neck retch. 2" square x 120" %,all tiibc,
I" x I" x 120 fate plate. 8' x 8' x .25' base plate, corer plate
included, carriage holls &tufts included Skyline k4m , 1,0"%,
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Page 5 of 7
Skyline Technology Solutions, LLC PROPOSAL
66f-1 At iation Bottle\ Ird Proposal 0: 1 S888
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Printed: 10'22n021 121.1 PM 1, , " t HO, I Vage 6 of
Skyline Technology Solutions, LLC PROPOSAL
6956-F A% iation Botdo-and
Proposal 4: 1 i888
Glen Burnic, MD 11061 Date: 1 o122/2021
N F Phone: 4 10-766-1993 Terms: Net 30 Diivs
TECI-4N(XOCYSOLVT1ONS 1-as, 410-766-�774 Sales Person: Kcrtdra D . Co:hcr
'Non-taxable Freight included il'applicable,
'fty signing below or Issuing a purchase order or sending an email approval or LABOR sv=.250,00
providing a contract for services constitutes acceptance of this proposal and its MATERIALS
attached terms & conditions: & FREIGHT, S184,374 18
Customer Signature; X SUBTOTAL S280,624.18
DISCOUN] SOAH)
Printed Name. SALESTAX so.uo
Date TOTAL S280.624.18
Printed: M`22�2021 12:13 PM a 2w3 I figh � S,,AN;v PaEe 7 of 7
a Skvline Technology Solutions, LLC PROPOSAL
69i6-F A+ iation Boulevard Proposal #: I5887
t Glen Bumie ,MD 21061 pate: I0122i-1Q, I
Phone: 410 ?66-19U3 Terms: Net 30 Days
Fax: 410-766->774 Sales Person: ker+dra D Collier
7E(-HN(-,A-.0G,r`S0Ltm0NS
Prepared for:
Washington County
Washington County
100 West Washington St. Rhi 334
ilagerstimn. s1D ? 1740
Damien R Reisch 24031 32272
Proposed Service,
Location:
Washington C ciunty
WS lShington County Circuit Court
yi west Washington Street
Ha;erstown. ,ti1D 21-,40
1. Statement of Work
Skyline Technology Solutions is pleased to provide Washington County Government with a Proposal for the
Genetec CCTV full upgrade and expansion located at Washington County Courthouse, 95 West Washington
Street, Hagerstown, MD, 21740, Skyline Technology Solutions will complete following Scope of Work based
on Site Survey & Attached Floor Plan. Skyline's understanding, we will replace and upgrade (29) existing card
readers, install (13) new card readers, 13 new sets of locking hardware, and (8) Mercury based access control
panels throughout all 4-floors of the Washington County Courthouse.
2. Scope of Work
A. Network Coble
- Provide (6) 1' orange Cat6 patch cable for patch panel to switch
6 Access Control Basement
Provide, Install and Test (5) Signo HID card readers as replacements to existing card readers
Provide, Install and Test (2) new Signo HID card readers
Provide, install and Test (2) HES 1600 LBM strikes
Provide, Install and Test (2) Bosch DS160 REX motion detectors
Provide, Install and Test (2) GRI door contacts
Provide, Install and Test (1) Genetec LP1502 door controller
Provide, Install and Test (2) Genetec MR52-S3 expansion modules
Provide, Install and Test (2) 12-volt lamp -hour batteries
Provide, Install and Test (1) Genetec 150-watt power supply
Provide and install (2) new access control cables
C. Access Control 11' Floor Side A
Provide, Install and Test (7) Signo HID card readers as replacements to existing card readers
Provide, Install and Test (4) new Signo HID card readers
Provide, install and Test (2) HES 1600 LBM strikes
Provide, install and Test (2) dual maglocks with Panic button to lockdown vestibule doors
Provide, Install and Test (1) HES 1500 LBM strike
Provide, Install and Test (3) Bosch DS160 REX motion detectors
Printmi I0'22t�0'si I? 12 PM (c) ?`)"";{h5ti;,r`trarr r'ti�r f t>FG
r
S K Y I I
ECHf`,1(_ K)(:YSt) UTfONS
Skyline Technolop Solutions, LLC PROPOSAL
61)5e)+ A'6a6o:i Houle and Proposal Is: i 58"
Olen litimic, VD 21061
Phone 41 t> "60-1091 Terms: Oe"o Dais
Far,; 41tt•;hb-;"t"?=� Soles Person: Kerkira [) C'rafiicr
Provide, Install and Test (4) GRI door contacts
Provide, Install and Test (1) Genetec LP1502 door controller
Provide, Install and Test (4) Genetec MR52-S3 expansion modules
Provide, Install and Test (4) 12-volt 7arnp-hour batteries
Provide, Install and Test (2) Genetec 150-watt power supply
Provide, Install and Test (1) Genetec Cbudlink
Provide and install (4) new access control cables
D Access Control 1'a Floor Side B
Provide, Install and Test (2) Signo HID card readers as replacements to existing card readers
Provide, Install and Test (4) new Signo HID card readers
Provide, Install and Test (2) interior mounted r iaglocks
Provide, Install and Test (2) Hager Exit devices w/Cornmand ELR and removeabie mullion
Provide, Install and Test (2) Securitron REX pznic bars
Provide, Install and Test (1) Bosch DS160 RLX motion detectors
Provide, Install and Test (3) GRI door contacts
Provide, Install and test (1) Genetec LP1502 door controller
Provide, Install and Test (2) Genetec MR52-S3 expansion modules
Provide, Install and Test (2) 12-volt lamp -hour batteries
Provide, install and Test (1) Genetec 250-wa?' power supply
Provide and install (4) new access control cables
E. Access Control2" Floor
Provide, Install and Test (9) Signo HID card readers as replacements to existing card readers
Provide, install and Test (2) new Signo HID card readers
Provide, install and Test (2) HES 1600 LBM strikes
Provide, Install and Test (2) Bosch DS160 REX motion detectors
Provide, Install and Test (2) GRI door contacts
Provide, Install and Test (1) Genetec LP1502 door controller
Provide, Install and Test (4) Genetec MR52 53 expansion modules
Provide, install and Test (4) 12-volt lamp -hour batteries
Provide, Install and Test (2) Genetec 150-watt power supply
Provide and install (2) new access control cables
F. Access Control 3'° Floor
Provide, Install and Test (6) Signo HID card readers as replacements to existing card readers
Provide, Install and Test (1) new Signo HID card readers
Provide, Install and Test (1) HES 1600 LBM strikes
Provide, Install and Test (1) Bosch DS160 REX motion detectors
Provide, Install and Test (1) GRI door contacts
Printed. I (1 2"7021 12.1 2 I'M 1, , 'f' 3 IN,+ 5 Pa1r ? of o
Skv ine Technology Solutions, LLC PROPOSAL
6166-F Av iation Boulearil 11roposs+I „:
filer f3ot7}ic.ff)�I Date
Y t I F Thole 410-70 -1,1 rtl`� i Uti Lfr1C. ? t_'S
C=C HNOLC)<v Si�..11TiQNS Tax 410- 06-57n
, 4 Sales Person: Kendra 1) Collier
f :
Provide, Install and Test (1) Genetec LP1502 door controller
Provide, Install and lest (4) C,enetec NviR57-43 expansion module,
Provide, Install and `test (2) 12-volt lamp -hour batteries
Provide, Install and Test (2) Genetec 150-watt power supply
Provide and install (1) new access control cables
G Arcess Control Elevators
Employee elevator car card reader will be replaced
[mployee elevator card readers on each floor will be replaced
All employee elevator card reader cables are terminated on the 3" floor panel in the elevator
control room on the roof
3. Assumptions
A. General
1, All work can be performed during normal business hours lam 5pm ,,mess otherwise specified in
the Statement of Work
2. Access to workspace will be granted by the customer
3. Parking will be made available for a minimurn of (1) vehicle
d. All outlets, devices and equipment count and/or types are accurate and it any counts exceed quoted
amount and/or equipment needs to change, change order will be provided.
5. Delays that are not caused by Skyline may result in a change order or m_)bihzatior1 fee not tc exceed
$1500.00.
6. Delivery dates are dependent on vendor and/or manufacture availability of equipment
7. Price does not include architectural submittals for historical areas of the building
8, Price includes 5 years Advantage which will be recalculated at time of purchase
10 5-year Genetec Advantage will be applied at time of installation
11. Genetec Advantage Renewal will be set and quoted for 5 -years on May 31, 2022. as part of
separate proposal
B. Network Cable
1. All cable pathway is accessible
2. If required for access, patching of drywall will be performed by others
3, if required for access, all core holes will be provided by others (A core bore is any hole that
penetrates the building slab, raised floor, slabs, block walls, or any surface that requires a hammer or special
drill)
Q. All low -voltage boxes and string and/or conduit will be provided by others
5. Fabrication of all raceways and conduits are excluded from proposal unless otherwise stated in the
Printed 10, 22�2021 12:12 PM 'c � 2 + II
Y I I N F
!-(_.W! X 0(:-YSOLUT1ONS
above State of Work
C. Access Control
Skyline Technology Solutions, LLC PROPOSAL
6956-F Atiirrtion Boulevard
(iiktt Burnie M1) 21Or, 1
Phone 4
10-'766-i o i)3
Prpposa) H: 15887
Date: 1 U122/20" i
Terms: Net 30 1)a%;
Sale Person: Kendra 1) t iwg
1. All existing card reader cables are in good working order
2. Existing Access Control panels wili be replaced 1 floor at a time
3. Existing Access control locking hardware is in good working order
4. Network closets has sufficient wall space for new enclosure,
5. Washington County iT will manage Access rules for new access control card readers
6. Existing Washington County Credentials are compatible with new multi -class card readers
7. Price assumes current HID lead times are 3-months from time of purchase
4. Provided by others
A. (6) new PoE network ports
B (6) new patch panel ports
C. Each OF will have available 110 VAC power out ets for new Genetec power supplies
D. Skyline will provide a separate Customer Requirements Form (CRF), following proposal acceptance,
detailing items needed prior to equipment being ordered and/or work will be scheduled. Result of not
completing and returning CRF may cause delays in ordering and/or scheduling. Specific items may include but
are not limited to IP address information, power equipment, switch/patch panel ports, etc.
S. Skyline's Standard Practices
A_ All Category Cable and/or Fiber will be tested with an approved testing device in compliance with
Industry testing procedures.
B This design and installation will comply with all federal, state, county and municipal codes and
regulations, the National Electric Code (NEC). National Fire Protection Assn. (NFPA), ANSI/ElA/TiA 568 & 569
for building telecommunication wiring and pathway.
C. All cable, outlets, termination panels and devices will be machine printed labeled using a sequence
to match the floor plan and/or customer provided labeling scheme.
0 All Skyline provided equipment will be tested in our lab before installed at customer location to
reduce RMA'5.
E. video Surveillance will comply with standards set forth in the National Electric Code (NEC)
Internet Connection Article 725, requirements for minimum wire sizes, adjustment factors,
overcurrent protection, insulation requirements, wiring methods, and materials.
NUMBER DESCRIPTION Q1-Y t"vt'TCOSr TOTAL
CCP� C"ahting Tech (Fnc CCPN - Cabling Tcch tFae Spec Lev 1) MO 566,040 56.604.6c)
Printed: 10 2?�2021 12 1 2 PM tti. ='<I ; IIE01 i s., ,, %r, P&ac -i of 6
d
Skvline Technology Solutions, LLc PROPOSAL
r AI 0950-r Av cation BOL11 t and
Proposal #:
I5587
� Cil.nt3urnt< \IU2lQ61
Ph, me 410766-1993
i)litr:
•terms:
I0'�2'1r1
'-
Net 31) 1 )t%s
I ax: 410-766-5774
Sal" Person:
Kendra D C ol1wr
�-(-}-iNOtt (�YSqL1TTiOHS
C'('P\ - 5+ecurity Tech 1(ac
(VI", - Security' Tech (Fac Spec Lev 2)
Sf 2
SIOt,.hSfl
5+3.`)`-Ili
11\1 t Pro> e t
t C P\ P`,l Wr,alcct \Ianagerl
't
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CCPV - LtIFinecr iS}%lane F.neOneer;
Lo kuni h
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Atiseell ti,.ous item; for pr ojEtits. tip to
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Ctenetcet" Arlene-ta?e for 15ynergit Entcrpwv Kt%td,r vc.ir;
i
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\tSRP 556 CIO - 75`-.1
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HID Signo 40 reader. l'~'all mount. I3,56naliz & I'_Wl/.
4'-
M01.250
S8.03„ 50
C)SDP Viegand. Pigtail. Alohilc Rcndt. 1111
MSRP 25i 00 -
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BOSCH I'll-Ct. RI I Y SY S I*F\IS C.aSfbi) RI.Ol Esl EC) IX1!
PIR GREY
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=
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5 ir;; 00
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SY-11111502
\tcrcur) Intelligent Comroller. LinuxBascd. R1tr Wort 2R,l
5
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t;.081 <'S
(SOftisare('unnectiLm; included)
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relms, PCB of l) sof1wate c-onraediot}_f i-ludCd)
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LifeSafcn P- +ter-lfcr:ur)' Patter. 150N' Duai \ oltue. S ?,
SL t trot)
5 t ,`t? raty
And 16 Pit tauy ,autputc, '4y20.",6.S cnJo urc
\ISRP <R20 00 - 25110
SY -(-I t)t tDIA\ K
ayncri ra t:loud Link with 26B of RA\I. 16t:B Flash. ivn si e
1
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Sti+,' 00
installed Aaith Svncrgis ac; xss control finuware. imir 10,- 48, porn.
PUL.
\15RI' 1150 00 • 250'°1
HUB-M
HLM-\i DI'D"I Nlomenutry or Latching liulton
I
51 I.Gt)5
"NI I bt
Skyline cost ' 10a;a
12V 7A11
12 Volts,7 R( 'w 2S Anips
16
St6,V-1
S16009
Sk<line Cost + 1Ma
05RAW-004500
500' - Ac2e;c C ontrol Cable. Plenum -CM!". t-22 A�1'l i pairs, 4.1 R
16
S41- 906
AN'fJ <.�rrductors, s-22 ANV(j conJuctor;, 2 22.Akv(i condu.uxs.
All c,mdu,:tors trandcd hire capper Skyline Cost IW-
C 601 10300 1
Cat 6 1 ()rar)ge Patch Cord
6
,4 -8;
Is 71
Sk\'fice (oss � 10°•a
Inlfation Protection
I5°u buffer to proteet against manufacturing Pricy inc:rea*et ,i%rr
I
I .000 Of10
SI S OM 00
I2-month period
Primed 10?�12021 12:12P\i ice 1,t, n hs�,rtu:rrc P,I C ot'6
Skyline Technology Solutions, LLC PROPOSAL
6956-F Aviation Roulcs and
Glen C3umie. NID 21$)61
Phis te' 410-766-1 A9
I a% 4 0-700-�;774
Proposal tt: 1?S87
Date: I () ',202 t
Terms: Net 30 Days
Sales Person: Kcndm D CoAic
'Noo-taxable Freight included ifappkable.
*Hti signing beluN or issuing a purchase order or .ending an email approval or
1 BOIR
providing a contract for survives constitutes acceptance of this proposal and its %IA I-ERIALS
attached terms d conds`rioos: Ik- FRUICTIT, l7fi,aili OJ
t`usC�xrterSignaturc.
5UR 101 AL SIdi.739,68
IIISCOI'NA 10 00
Printed \anw, SALES f AX
Date
101'A l, '� 1.45,739.68
Printed: 10 `_12021 12 12 PM '.L s 2i 1� �'� VC [age 6 of 6
Page 1 of 2
RESOLUTION NO. RS-2022-
(Intergovernmental Cooperative Purchase [INTG-22-0086] Court House Security)
RECITALS
The Code of Public Local Laws of Washington County, Maryland (the “Public Local
Laws”), §1-106.3, provides that the Board of County Commissioners of Washington County,
Maryland (the “Board”), “may procure goods and services through a contract entered into by
another governmental entity in accordance with the terms of the contract, regardless of whether
the county was a party to the original contract.”
Subsection (c) of §1-106.3 provides that “A determination to allow or participate in an
intergovernmental cooperative purchasing arrangement under subsection (b) of this section shall
be by resolution and shall either indicate that the participation will provide cost benefits to the
county or result in administrative efficiencies and savings or provide other justifications for the
arrangement.”
The Washington County Circuit Court seeks to enter into a contract for the purchase and
installation of Tier I (X-Ray Machine, Magnetometer, Access Control System, Duress Alarm,
Camera System, and Audio Visual Intercom) at a cost of $145,739.68, Tier II (Building Alarm,
Bullet Resistant Barriers, Fenced/Restricted Parking, and Prisoner/Sally Port), and Tier III –
Emergency Intercom at a cost of $280,624.18, for the total sum amount of $426,363.86 from Skyline
Technology Solutions, LLC of Glen Burnie, Maryland, and to utilize another jurisdiction’s
contract (RFP No. 49-F-2-18/19) that was awarded by the Carroll County Office of Procurement.
Utilizing the Carroll County Office of Procurement contract and eliminating the County’s
bid process will result in administrative and cost savings for the Washington County Circuit
Court. The County will benefit with direct cost savings because of the economy of scale the
aforementioned contract has leveraged. Additionally, the County will realize savings through
administrative efficiencies achieved as a result of not preparing, soliciting, and evaluating bids.
NOW, THEREFORE, BE IT RESOLVED by the Board, pursuant to §1-106.3 of the Public
Local Laws, that the Washington County Circuit Court is authorized to enter into a contract for
the purchase and installation of Tier I, Tier II, and Tier III Court House Security for the total
contracted pricing in the amount of $426,363.86, and to utilize another jurisdiction’s contract
awarded by the Carroll County Office of Procurement (RFP No. 49-F-2-18/19) to Skyline
Technology Solutions, LLC of Glen Burnie, Maryland.
Page 2 of 2
Adopted and effective this ____ day of May, 2022.
ATTEST: BOARD OF COUNTY COMMISSIONERS
OF WASHINGTON COUNTY, MARYLAND
_____________________________ BY: ______________________________________
Krista L. Hart, County Clerk Jeffrey A. Cline, President
Approved as to form
and legal sufficiency: Mail to:
Office of the County Attorney
______________________________ 100 W. Washington Street, Suite 1101
Kirk C. Downey Hagerstown, MD 21740
County Attorney
Open Session Item
SUBJECT: Bid Award (PUR-1537) Laboratory Services for Water/Wastewater Testing for the
Department of Water Quality
PRESENTATION DATE: May 3, 2022
PRESENTATION BY: Brandi Naugle, CPPB, Buyer - Purchasing Department, Davina Yutzy,
Deputy Director of Water Quality Operations
RECOMMENDED MOTION: Move to award the bid for Laboratory Services for
Water/Wastewater Testing for the Department of Water Quality to the responsible, responsive
bidder Pace Analytical Services, LLC of Greensburg, PA who submitted the lowest (annual)
Total Bid Sum in the amount of $77,566.
REPORT-IN-BRIEF: The scope of services to be provided by the contractor includes pick-up,
preserve and transport of samples (which could be water, wastewater and/or solids) from the
Department of Water Quality’s Laboratory twice per week. All analyses are to be completed and
reported within fourteen (14) consecutive calendar days after the contractor receives the sample.
This contract is for a period of one (1) year, with an option by the County to renew for up to two
(2) additional consecutive one (1) year periods tentatively to commence May 1, 2022. The
quantities stated in the bid document are estimated annual quantities. This is a requirements
contract, utilized on an as-needed basis with no guarantee of minimum or maximum number of
units of services.
The bid was advertised on the State’s “eMaryland Marketplace Advantage” website and the
County’s website and published in the local newspaper. Twenty-one (21) persons/companies
registered/downloaded the bid document on-line, and five (5) firms were represented at the pre-
bid conference / teleconference. One (1) bid was received on Wednesday, March 30, 2022 as
indicated on the attached bid tabulation matrix.
DISCUSSION: N/A
FISCAL IMPACT: Funding for these services is available in the Department of Water
Quality’s operating budget 515000-40-40030.
CONCURRENCES: Division Director of Environmental Management
ALTERNATIVES: N/A
ATTACHMENTS: Bid Tabulation Matrix
AUDIO/VISUAL NEEDS: N/A
Board of County Commissioners of Washington County, Maryland
Agenda Report Form
PUR-1537
Laboratory Services for Water/WasteWater Testing
Item Description Unit Qty
*
1 TKN EA 100 $16.00 $1,600.00
2 Ammonia (NH3-N)EA 100 $13.00 $1,300.00
3 Cyanide (Total Cyanide)EA 100 $16.00 $1,600.00
4 VOCs (Test Method 524, 524.2)EA 30 $58.00 $1,740.00
5 VOCs (Test Method 624)EA 50 $58.00 $2,900.00
6 Semi‑volatiles (Test Method 525)EA 25 $122.00 $3,050.00
7 Semi‑volatiles (Test Method 625)EA 25 $127.00 $3,175.00
8 Pesticides & PCB’s (Test Method 508) EA 30 $210.00 $6,300.00 *
9 Pesticides & PCBs (Test Method 608)EA 40 $69.00 $2,760.00
10 Pesticides & PCB’s (Test Method 505)EA 10 $58.00 $580.00
11 concentration is needed by test method
EPA 602 or by any other EPA approved
test method.)
EA 5 $85.00 $425.00
12 other EPA approved test method EA 5 $42.00 $210.00 *
13 EA 5 $42.00 $210.00 *
14 TPH (any EPA approved test method.)EA 20 $42.00 $840.00
Pace Analytical Services, LLC
Greensburg, PA
Indicate the percentage premium your firm will add to each of
the test costs below in the event of an accelerated test result
requirement:
25%
1 Bids Opened: 03-30-2022
PUR-1537
Laboratory Services for Water/WasteWater Testing
Item Descriptions Unit Qty
15 Silvex; Test Method 615, 8151A or by EA 20 $106.00 $2,120.00
16 Cadmium Chromium, Lead, Mecury,
Selenium and Silver)
EA 10 $90.00 $900.00
17 TCLP Organic: VOCs + Semi volatiles
+ Herbicides + Pesticides / PCBs EA 10 $413.00 $4,130.00
18 Flash Point EA 40 $20.00 $800.00
19 Mercury EA 40 $16.00 $640.00
20 Total Phosphorus EA 75 $16.00 $1,200.00
21
Individual Metal Analyses (Arsenic,
Antimony, Barium, Cadmium,
Chromium, Cobalt, Copper, Lead,
Selenium, Silicon, Silver, Aluminum,
Iron, Magnesium, Mantganese,
Molybdenum, Nickel, Potassium,
Sodium, Tin, Titanium, Vanadium and
EA 200 $7.00 $1,400.00
22 Color EA 20 $11.00 $220.00
23 Phenol EA 10 $16.00 $160.00
24 Surfactants EA 10 $42.00 $420.00
25 Odor EA 10 $11.00 $110.00
Pace Analytical Services, LLC
Greensburg, PA
2 Bids Opened: 03-30-2022
PUR-1537
Laboratory Services for Water/WasteWater Testing
Item
No.Item Descriptions Unit Qty Unit
Price
Total
Price
26 TOC’s (Total Organic Carbon)EA 80 $16.00 $1,280.00
27 Hexavalent Chromium EA 20 $23.00 $460.00
28 Nitrate / Nitrite EA 100 $11.00 $1,100.00
29 Atrazine (drinking water)EA 10 $143.00 $1,430.00
30 Oil & Grease EA 30 $32.00 $960.00
31 Formaldehyde EA 10 $201.00 $2,010.00 *
32 EA 150 $48.00 $7,200.00
33
Sludge Analyses including: Total
Phosphorus, Total Potassium, TKN,
NH4, NO3, Cd, Cu, Ni, Pb, Zn, Hg, As,
Mo, Se, PCB's and Calcium Carbonate
Equivalent and present solids
EA 20 $239.00 $4,780.00
34 Dioxin EA 5 $239.00 $1,195.00
35 Asbestos EA 5 $127.00 $635.00 *
36 Haloacetic Acids (HAA5) by EPA 552.2 EA 75 $80.00 $6,000.00
37 Calcium Carbonate Equivalent (CaCo3)
for Sludge samples EA 20 $27.00 $540.00
38 EA 20 $48.00 $960.00
39 GRO EA 4 $37.00 $148.00
Pace Analytical Services, LLC
Greensburg, PA
3 Bids Opened: 03-30-2022
PUR-1537
Laboratory Services for Water/WasteWater Testing
Item
No.Item Descriptions Unit Qty Unit
Price
Total
Price
40 DRO EA 4 $37.00 $148.00
41 Percent Solids EA 20 $11.00 $220.00
42 Heterotrophic Plate Count (SM9215)EA 10 $27.00 $270.00
43 Sulfate EA 15 $16.00 $240.00
44 COD EA 25 $16.00 $400.00
45 Sulfide EA 10 $16.00 $160.00
46 Sulfite EA 10 $16.00 $160.00
47 EPA 8260 EA 10 $58.00 $580.00
48 Chloride EA 15 $11.00 $165.00
49 Ortho-Phosporous EA 75 $16.00 $1,200.00
50 Bromide EA 30 $16.00 $480.00
51 Cryptosporidium EA 5 $803.00 $4,015.00
52 Giardia EA 5 See above cost
Included in
Cryptosporidium
run
*
53 Fluoride EA 5 $16.00 $80.00
54 Test Method 547 EA 5 $69.00 $345.00
55 Test Method 548 EA 5 $69.00 $345.00
56 Test Method 531.1 EA 5 $58.00 $290.00
57 Test Method 504.1 EA 5 $37.00 $185.00
58 Test Method 549 EA 5 $69.00 $345.00
Pace Analytical Services, LLC
Greensburg, PA
4 Bids Opened: 03-30-2022
PUR-1537
Laboratory Services for Water/WasteWater Testing
Item
No.Item Descriptions Unit Qty Unit
Price
Total
Price
59 Test Method 515.3 EA 5 $90.00 $450.00
No. 8 *Subcontracted; 7 day hold
No. 12 *Can be run with MTBE samples
No. 13 *Can be run with BTEX samples
No. 35 *Subcontracted; 48 hour hold time
No. 52 *If need extra plate and filters $185; Subcontracted to Pace KY
Pace Analytical Services, LLC
Greensburg, PA
TOTAL BID SUM
ITEMS 1 THROUGH 59
Indicate the percentage premium your firm will add to each of the test costs in the event of an
accelerated test result requirement: *Dependent on in-house capability of lab and sub lab and specifics
Remarks / Exceptions:
$77,566.00
5 Bids Opened: 03-30-2022
Open Session Item
SUBJECT: Hotel Rental Tax Funding Request, The House on Jonathan Street Documentary
PRESENTATION DATE: May 3, 2022
PRESENTATION BY: Susan Buchanan, Director, Office of Grant Management; Dan
Spedden, Hagerstown/Washington County Convention & Visitor’s Bureau (CVB)
RECOMMENDED MOTION: Move to approve the request for Hotel Rental Tax funding for
the “House on Jonathan Street” Documentary in the amount of $________ for direct expenses
associated with the event.
REPORT-IN-BRIEF: The Hagerstown/Washington County Convention & Visitor’s Bureau
(CVB) has submitted a request for Hotel Rental Tax funding to gain an underwriting credit for a
documentary film related to the history and culture of Washington County entitled “The House
on Jonathan Street”.
DISCUSSION: The Hagerstown/Washington County Convention & Visitor’s Bureau (CVB)
has submitted a request for Hotel Rental Tax funding to gain an underwriting credit for a
documentary film related to the history and culture of Washington County entitled “The House
on Jonathan Street”. The amount of funding requested for this project is $50,000, and the total
projected cost of the project is $100,000. The remaining portion of the expenses will be paid for
by the CVB.
The application has been reviewed by the Office of Grant Management and the project meets the
goals of the Hotel Rental Tax grant program.
FISCAL IMPACT: The Hotel Rental Tax Fund balance will be reduced by the amount of this
award. Current balance of the fund is $289,126.
CONCURRENCES: N/A
ALTERNATIVES: Deny the applicant’s request for Hotel Rental Tax Funding.
ATTACHMENTS: Hotel Rental Tax Funding Application, Underwriting Proposal and Project
Timeline
AUDIO/VISUAL NEEDS: N/A
Board of County Commissioners of Washington County, Maryland
Agenda Report Form
Washington County, Maryland
Hotel Rental Tax Funding
Grant Application
100 West Washington Street
Room 2200
Hagerstown, Maryland 21740
240-313-2040
Organization/Agency: Hagerstown/Washington County CVB E-mail Address: Dan@visithagerstown.com
Address: 16 Public Square Hagersotwn MD 21740
Contact Person: Dan Spedden Title: President
Phone Number: (301) 991-0521 Fax Number: 3017912601
Tax ID/Federal ID#: 52-1866211 C, Capital Request (` Operating Request
Project Classification: li,= Tourism/Attraction ( `,F Economic Development ( Cultural O Recreation
Project Name: he House on Jonathan Street
Project Start Date: February 2022 Project End Date: February 2023
Project Justification and Economic Benefit/impact to the Visitor Industry, if Applicable
"he CVB proposes to partner with the Hotel Rental Tax Grant Fund to gain an Underwriting Credit for a documentary film related to
he History and Culture of Washington County. The benefits associated with being the Underwriter can best be described as
advertising and promotion designed to elevate the profile of Washington County as a preferred destination for Cultural and Heritage
-ourists.
Anticipated Visitor Attendance and Impact on Hotel Rental Occupancy, if Applicable
I occupancy will be positively impacted through the production phase of the film through business travel associated with the
uction team.
I occupancy will be subsequently and positively impacted by Cultural and Heritage Tourists who were inspired by the film to visit
!rstown and Washington County.
[Nam,,alive Description of Project: Include purpose of project, outline of project procedures, intended results of project or any additional
oments that support the need for project and/or merit as an event or activity designed to promote Washington County, Maryland.
of Project: The CVB proposes to partner with the Hotel Rental Tax Grant Fund to gain an Underwriting Credit for the
ntary film and to win for our community all of the benefits associated with being the Underwriter.
Is Underwriting?
n the commercial world of television, underwriting is called sponsoring or advertising. In the world of public television, underwriters
'und programming. Underwriters can be corporations, members of the business community, foundations, associations, government
agencies or unions. In return for this support, a public TV program runs a sponsor message that can be up to 30 seconds in length as a
:hank you at the start and finish of each program. This is built into the program and must be aired each time the show is broadcast.
sor messages on public television have a greater impact and are more effective than spots elsewhere on television because public
Ision has such a small amount of non -program material, less than 6 minutes an hour, versus all the other broadcasters (network and
cable) who include 161/2 minutes of non -program time per hour. In addition, the prohibition against "hard sell" spots and the
worthiness of public television combine to make underwriting messages extremely credible and memorable.
)roject Procedures:
t Roads Communications will produce and distribute the documentary film. 3 Roads and the CVB will agree that the CVB will receive a
fifteen second audio and video underwriting credit appearing before and after each broadcast of the Program on Public Television. The
documentary film will be titled "The House on Jonathan Street" and will be approximately sixty minutes long. The House on Jonathan
itreet will be made available by 3 Roads Communications for broadcast to Public Television member stations in the United States for
unlimited broadcasts for a period of one year from initial distribution beginning no later than June 1, 2023.
4ctivity Designed to Promote Washington County:
Based on previous documentaries, The House on Jonathan Street should attract, at a minimum, broadcasts on more than 250 public TV
>tations covering at least 85% of the U.S. markets. The goal is to clear at least one station, and often multiple stations, in each of the Top
25 TV markets.
A National Public TV documentary will add prestige to the underwriter's destination brand.
Corollary media attention to the program will add national visibility for the underwriter's brand.
ilm screenings in key local and regional venues will also provide additional exposure for the underwriter and amplify the impact of the
ocumentary.
ATTACHMENTS: Documentary Concept anf Time Line, Underwriting Agreement
A. Amount of Hotel Rental Tax Grant Funding Requested 1 $50,000
Itemize your total project budget into the appropriate classifications:
A. Tourism Attraction (Be specific in expense break down):
Agreement
B. Economic Development Enhancement (Be specific in expense breakdown):
C. Cultural Projects (Be specific in expense breakdown):
D. Recreational Projects (Be specific in expense breakdown):
otal Project Budget �� $100,000
Deferred to Board of County Commissioners
Susan M. Buchanan 4/4/22
3 RoADS COMMUNIC
I
www.3roads.com
February 1, 2022
To: Potential Underwriters (Sponsors)
From: 3 Roads Communications, Inc.
Re: The House on Jonathan Street Proposal
I. DOCUMENTARY CONCEPT
The House on Jonathan Street is a one -hour documentary intended for national distribution to
Public Television, and national and international distribution through Amazon Prime.
The documentary uses the accidental discovery of the significant history of a modest dwelling on a
traditionally African -American street in Hagerstown, Maryland to trace the roots of middle
America's racial, economic and social interactions. Through the lens of this house, the rise and fall
of the African -American community in small rust belt towns and cities across America is told.
And how its discovery, renovation and renewal may portend a change in the fortunes of the street
and the larger community.
The documentary is being produced in 4K, which is the highest technological format broadcast
nowadays. This will ensure the desirability of the documentary both domestically and
internationally, and also means that the documentary will have as long of a shelf life as possible,
meaning additional distribution possibilities for the next decade.
Much of the principal photography and a dozen of the key research interviews for the
documentary have been completed.
II. BACKGROUND
Based on 3 Roads' extensive experience producing and distributing programming nationally
through Public Television, it appears that our collective interests would be best served by moving
forward with a national Public TV distribution. This does not rule out the idea that eventually,
perhaps even after the production of the sizzle reel, that a cable outlet might become interested,
and we will shop it there as well.
The upside of public TV distribution is that we will maintain editorial and creative control of the
documentary, and we would own all subsidiary rights in the shows, including international rights,
which may be considerable on a show of this type. It also allows us to further distribute the
documentary through our arrangement with Amazon Prime, as well as through our educational
market agreements and our international distribution agreements.
The downside of Public TV distribution is that we provide the programs to the stations for free,
which means that we would have to find funding as opposed to having it paid for by cable
networks. Another downside is that public TV rules are more restrictive in terms of promotion and
separation of editorial and commercial. However, we have always managed to successfully stay
within public TV rules and have successful distribution as well.
Another huge upside to Public TV distribution is that the demographics of public TV viewers
align completely with House on Jonathan Street target audience profile. Public TV delivers the
highest incomes, highest educated demographic in television, with mass viewership that exceeds
most cable networks.
With that in mind....
III. THE DEAL
We propose that we enter into an agreement with one or two underwriters to produce this
documentary. As we have with all of our productions, 3 Roads would handle all production,
distribution and marketing of the series. In addition to Public TV, 3 Roads also has a distribution
agreement in place with Amazon Prime, where all of our documentaries and series are streamed.
Each underwriter on the series will receive two underwriter credits per program acknowledging
their funding role. One credit will be at the beginning of each episode, and one credit would be at
the end of each episode. Placement and length of the credits will depend upon the amount of
money that each funder contributes.
IV. BUDGET
We have included a separate budget with line items. The "all -in" figure, for production,
distribution and marketing for the 13-episode series is $250,000.
V. BENEFITS FOR UNDERWRITERS
• The House on Jonathan Street will sensitively examine many of the issues at the core of polarized
American politics: race, wealth inequality, the loss of the manufacturing economy and opiod
addiction.
• Based on our previous documentaries, The House on Jonathan Street should attract, at a minimum,
broadcasts on more than 250 public TV stations covering at least 85% of the U.S. markets. We
normally clear at least one station, and often multiple stations, in each of the Top 25 TV markets.
• A national Public TV documentary would add prestige to the underwriter brand.
• Corollary media attention to the program will add national visibility for the underwriter.
• Film screenings in key local and regional venues will also provide additional exposure for the
underwriter and amplify the impact of the documentary.
VI. ADDITIONAL POINTS
• 3 Roads would produce and distribute The House on Jonathan Street and would be responsible for
its editorial and production content.
• The documentary would be broadcast nationally; likely on Public TV but also marketed to cable
networks. It would also be streamed on Amazon Prime and sold internationally for broadcast
and/or cable distribution. Several of our programs have premiered on Public TV and then been
resold domestically to cable networks.
• Underwriter messages would be featured prominently in each episode.
• An underwriter "sponsor" who contributes more than $100,000 for the series will receive two
fifteen second underwriter messages per episode. The underwriter who contributes the most would
have the lead position.
• The documentary has a total of three minutes of time for underwriter messages; ninety seconds at
the beginning and ninety seconds at the end.
• Public TV viewers have the best demographics in the world; they are the high income, highly
educated decision -makers.
• Public TV also reaches a mass affluent audience. Their total number of viewers each week trail
only the three major networks and a few cable networks in terms of total viewership.
• The House on Jonathan Street would premier on public TV six months to one year after
production begins.
• The production team for this series has produced an Oscar -qualified documentary, seven public
TV series and seven public TV specials and documentaries. They are well known within the tight-
knit public TV world and can access relationships to provide enhanced program carriage and
better timeslots.
SAMPLE PRODUCTION TIMETABLE
Broadcasts Begin February 2023 (Black History Month)
Calendar Year 2021 (Completed)
Research Interviews including:
Reggie Turner, Chairman Western Maryland Development Corps
Tereance Moore, Western Maryland Development Corps
Ruth Dredden, former Jonathan Street resident and former Hagerstown schoolteacher
Ron Cassie, Editor, Baltimore Magazine; author of award -winning article about Hagerstown
Bob Bruchey, former Mayor of Hagerstown
Lynn Bowman, Author, 10 Weeks on Jonathan Street\
Nick Redding, Executive Director of Preservation Maryland
Naki Frierson, Sen Van Hollen's Office and former Jonathan Street resident
Dr. Thomas Mitchell, MacArthur Genius Award winning expert on redlining
Aaron Leventhal, Maryland Dept. of Transportation archelogist
Principal Photography/Videography
Script Outline
Research for Script and Guest Bookings
February 1, 2022- April 30, 2022
Underwriting Funds commitment received
Interviews Continue
Principal Photography Continues
Production of Sizzle Reel��
Public Announcement of Series to Public TV and Trade Press
May 1, 2022-Aulzust 31, 2022
Script Completed
Narrator Selected
Rough Cut Produced
Preliminary Outreach to Distributor and Stations Begins
Production Open Created
Production Elements Created
SEPTEMBER 1, 2022 — SEPTEMBER 30,202
Promotion Intensified
Audio Sweetening/ Scoring
Final Rough Cut
Close Captioning
Agreement with Distributor
i
OCTOBER 1, 2022— OCTOBER 31, 2022
Final version sent to Distributor
Station Relations begin
Electronic Press Kit Created
NOVEMBER 1, 2022 — NOVEMBER 30,202
Station Relations continue/Intensify
Public Relations continue/Intensify
Film Screenings Commence
Broadcasts Begin
The House on Jonathan Street
Underwriting Agreement
This Underwriting Agreement (the "Agreement") dated as of March 1, 2022, is made by and between
Three Roads Communications, Inc. ("3 Roads") with offices located at 118 East Church Street,
Frederick, MD 21701, and The Hagerstown Washington County Convention and Visitors Bureau
(HCWCVB) with offices located at.
Whereas, 3 Roads and HCWCVB desire to enter into this Agreement in order to set forth the terms and
conditions under which HCWCVB shall underwrite the Program.
In consideration for the mutual obligations described below, the Parties hereby agree as follows:
1. Television Documentary (the "Program")
(a) Title of the Program: "The Hoarse on Jonathan Street"
(b) Approximate length of program: Sixty minutes (60:00).
(c) Broadcast distribution: The House on Jonathan Street is made available by 3 Roads
Communications for broadcast to Public Television member stations in the United States for
unlimited broadcasts for a period of one year from initial distribution beginning no later than
June 1, 2023.
(d) Number of episodes: 1.
2. National Underwriting Credit
(a) 3 Roads and HCWCVB agree that HCWCVB will receive a fifteen second audio and video
underwriting credit appearing before and after each broadcast of the Program on Public
Television (the "Billboard"). HCWCVB's Billboard(s) shall be identified, potentially along
with the Billboards of other underwriters, as the underwriters of the Program. 3 Roads
reserves the right to approve the content and form of HCWCVB's Billboards. All aspects of
HCWCVB 's underwriting of the Program, including the Billboard, shall be in accordance
with the Communications Act, rules and regulations of the Federal Communications
Commission ("FCC") and Public Television sponsorship guidelines and policies in force at
the time of broadcast. HCWCVB will produce and deliver its Billboard to 3 Roads according
to a mutually agreed upon schedule.
(b) Parties agree that HCWCVB will be recognized as an underwriter and sponsor of the
Program on all publicity materials for the Program.
(c) 3 Roads shall not use HCWCVB's name or refer to HCWCVB or any of its affiliates directly
or indirectly in any manner including, but not limited to, any website, advertising or list of
representative clients without receiving the prior written approval of HCWCVB. There shall
be no announcement or press release regarding this Agreement, unless otherwise mutually
agreed to in writing by the parties prior to such disclosure.
(d) Notwithstanding the foregoing, 3 Roads shall have the right to use HCWCVB's corporate
name and symbol in connection with' HCWCVB s underwriting credit only with
HCWCVB's permission.
3. Payments and Expenses
(a) In consideration for the underwriting credit and other sponsorship benefits (including the
promotional benefits), HCWCVB agrees to pay 3 Roads the sum of $100,000 for the
underwriting of The House on Jonathan Street immediately upon invoicing.
(b) All invoices shall be submitted to ? or via e-mail to ? Invoices must include (i) Identification
of the agreed upon payment. (ii) Invoice number and date as well as a remittance address.
HCWCVB will pay a properly submitted (in accordance with the above requirement(s)) and
undisputed itemized invoice immediately upon receipt.
(c) All sums payable to 3 Roads under this Agreement that are not paid within 30 days
of the due date will accrue interest from the due date until the date paid, at the rate of 1
percent per month.
(d) Except as expressly stated, each party will be responsible for paying its own costs and
clearing all third party rights in connection with fulfilling its obligations under this Agreement.
(e) HCWCVB agrees to submit any plans it may have for the promotion of the Program
(including the text of press releases and text and layouts for advertisements) to 3 Roads for
approval to ensure the accuracy and appropriateness of all promotional and advertising
materials issued in connection with the Program. 3 Roads agrees to respond promptly to, and
will not unreasonably withhold approval of, all materials so submitted. When notified by 3
Roads, HCWCVB agrees to include in all such materials the appropriate trade/service marls
registration symbol in uses of the Programs' name.
4. Ownership
(a) As between the parties, 3 Roads shall control, for the duration of
this Agreement, all rights, title and interest (including all copyrights and all renewals and
extensions of such copyrights) throughout the world in all current and future media to the
Program, any sponsorship tagline or logo created (excluding any HCWCVB
trademark incorporated into the tagline or logo), and all materials created in connection
with the foregoing. Except as expressly stated in the Agreement, 3 Roads shall be free to
exercise such rights at any time without any obligation to HCWCVB.
(b) HCWCVB shall own all rights, title and interest (including all copyrights and all
renewals and extensions of such copyrights) throughout the world in perpetuity in all
current and future media to its underwriting credit, any trademark or trade name owned
or controlled by HCWCVB and any materials created by HCWCVB in connection with the
foregoing.
5. Termination
(a) 3 Roads and HCWCVB shall have the right to terminate this Agreement if the other party
breaches any of its material obligations and fails to cure such breach within thirty (30) days
of written notice of the breach. In the event that the termination is due to a material breach by
HCWCVB, all payments not yet made shall become due and payable to 3 Roads within thirty
(30) days of the termination date.
(b) Both parties will immediately discontinue using any material referring to HCWCVB
sponsorship of the Program and return all such materials belonging to either party.
6. No Sublicensing or Assignment
(a) Neither 3 Roads nor HCWCVB may sublicense or assign any of its rights or obligations
under the Agreement without the prior written consent of the other parties. Notwithstanding
the foregoing, HCWCVB may assign its rights, duties and obligations hereunder to an
affiliate or subsidiary company without consent.
7. Representations, Warranties, and Indemnities
(a) 3 Roads represents and warrants that it has the legal right and authority to enter into this
Agreement and to observe and perform fully its obligations set forth herein, and that its
performance hereunder will not conflict with or violate any commitment, agreement, or
understanding it has or will have to and with any other person or entity and that no legal
proceedings have been threatened or brought against 3 Roads which could otherwise threaten
performance of this Agreement and that entering into this Agreement is not prohibited by any
contract, applicable law, rule, regulation, government directive or judicial order or decree.
(b) 3 Roads shall pay and indemnify and hold harmless HCWCVB, and its officers, assignees,
directors, agents, licensees, and employees from and against all claims, losses, costs,
expenses, settlements, demands and liabilities of every kind, including reasonable attorneys'
fees and expenses arising out of (i) any inaccuracy, alleged breach, or actual breach of any
representation, warranty, covenant, agreement, or undertaking made by 3 Roads herein, (ii)
any matter in connection with or caused by the Program or under 3 Roads control, (iii) any
claim by a third party that the Program infringes upon the patent, copyright, trademark, trade
secret or other intellectual property rights of any third party, (iv) any claim arising out of the
disclosure or use of Confidential Information and (v) any amounts including taxes, interest,
and penalties assessed against HCWCVB which are obligations of 3 Roads; provided,
however, that if any claim shall be made or action taken which, if true, would constitute a
breach of any representation, warranty, covenant, agreement, or undertaking made by 3
Roads herein, HCWCVB agrees to give 3 Roads prompt notice thereof and HCWCVB shall
have the right to contest or join in the contest of such claim or action and may be represented
by counsel chosen by HCWCVB .
(c) HCWCVB represents and warrants that it has the legal right and authority to enter into this
Agreement and to observe and fully perform its obligations set forth herein, and that
HCWCVB 's performance hereunder will not conflict with or violate any commitment,
agreement, or understanding it has or will have to or with any other person or entity.
(d) HCWCVB shall defend, indemnify, and hold harmless 3 Roads and its officers, assignees,
agents, licensees, and employees from and against all claims, losses, costs, expenses,
settlements, demands, and liabilities of every kind including reasonable attorneys' fees and
expenses, arising out of the breach of any representation, warranty, covenant, agreement, or
undertaking made by HCWCVB herein, or involving any matter in connection with
HCWCVB 's advertising or promotion of the Program; provided, however that if any claim
shall be made or action taken which, if true, would constitute a breach of any representation,
warranty, covenant, agreement, or understanding made by HCWCVB herein, 3 Roads agrees
to give HCWCVB prompt notice thereof and 3 Roads shall have the right to contest or join
in the contest of such claim or action and may be represented by counsel chosen by 3 Roads.
8. Notice
All notices, requests for approvals, and approvals under this Agreement shall be in writing and mailed,
express delivered, or faxed to the other party.
To 3 Roads: Russ Hodge, President
Three Roads Communications, Inc.
It 8 East Church Street
Frederick, MD 21701
(3 01)662-4121
To HCWCVB :
9. Force Majeure
In the event that production or broadcast of the Program is delayed or cancelled by reason of act of God,
fire, lockout, strike or other labor dispute, riot or civil disorder, war or armed insurrection, enactment,
rule, act or order of government, mechanical failure, or any other force majeure cause or reason beyond 3
Roads' control, then 3 Roads shall produce and/or arrange for broadcast distribution as soon as practicable
after any such event. It is also understood by the parties that distribution of the Program may be altered
for a variety of reasons outside of 3 Roads' control, including competitive market reasons within the
public television community.
10. Dispute Resolution
All disputes shall initially be referred jointly to the parties' respective project managers or other
representative designated by each party. If the project managers or other designated representative(s) are
unable to resolve the dispute within seven (7) business days after referral of the matter to them, the parties
shall submit the dispute to a senior executive from each party for resolution.
Any dispute with respect to this Agreement which is not resolved within ten (10) days after referral to the
parties' senior executives in accordance the above, shall at all times thereafter at the initiation of either
party, be submitted to arbitration which shall be the exclusive means for resolving any such disputes.
Such arbitration shall be conducted by JAMS in accordance with its Arbitration Rules and Procedures
then in effect. The arbitration shall be administered by the Maryland State Office of JAMS and the
hearing shall be held in the state of Maryland. The arbitrators will be selected from a panel of retired
judges, will have familiarity with dispute resolution in the applicable industry and will not have a
relationship of any sort with either party. Any costs associated with the arbitration shall be borne by the
non -prevailing party. All decisions of the arbitrators shall be binding on both parties. Judgment upon the
award rendered by the arbitrators may be entered in any court having jurisdiction. THE PARTIES
HEREBY KNOWINGLY AND VOLUNTARILY AND IRREVOCABLY WAIVE THEIR RIGHT TO
A TRIAL BY JURY and agree that if the foregoing binding arbitration provision is determined for any
reason to be unenforceable or inapplicable to a particular dispute, then such dispute shall be decided
solely by a judge without the use of a jury, sitting in a court of competent jurisdiction. This binding
arbitration and jury trial waiver provision shall survive termination of this Agreement. Nothing in this
Agreement will prevent either party from applying for injunctive relief in any court of competent
jurisdiction.
11. Miscellaneous
(a) The parties shall notify each other in writing in the event that either deems this Agreement to
be breached and shall give the other part thirty (30) days to cure such breach before taking
action or making a claim on the basis of such breach.
(b) This Agreement is complete and embraces the entire understanding between the parties. All
prior and contemporaneous understandings in connection with the subject matter herein
contained, either oral or written, are null and void unless expressly set forth herein. No
alteration, modification, or wavier, in whole or in part, of any provision of this Agreement
shall be of any effect unless set forth in writing and signed by both parties hereto.
(c) Whenever notice is required to be given or may appropriately be given hereunder, such notice
shall be in writing and shall be delivered to the person or parties to whom intended at their
addresses first stated above.
(d) This Agreement is entered into within the State of Maryland and shall be governed and
construed in accordance with Maryland law as if this Agreement were to be fully performed
within the State of Maryland, without giving effect to principles of conflicts of laws. The
parties agree to submit solely and exclusively to the jurisdiction of the state and federal courts
of the State of Maryland to resolve any disputes arising hereunder.
(e) Upon reasonable prior notice from HCWCVB, 3 Roads shall provide HCWCVB and its
auditors and investigators reasonable access during normal business days and hours to 3
Roads' (i) facilitates that are actually performing the duties hereunder and (ii) business records
reflecting 3 Roads' compliance with this Agreement. In the event access to 3 Roads'
confidential information is required, access will be provided in such a way as to preserve the
confidentiality of such information.
ACCEPTED AND AGREED
Three Roads Communications, Inc.
By
Name: Russell Hodge
Title: President
HCWCVB
By
Name:
Title:
Open Session Item
SUBJECT: Maryland 9-1-1 Board – Approval to Submit Application and Accept Awarded
Funding
PRESENTATION DATE: May 3, 2022
PRESENTATION BY: Brian Albert, Emergency Communications Center Operations,
Division of Emergency Services and Rachel Souders, Senior Grant Manager, Office of Grant
Management
RECOMMENDED MOTION: Move to approve the submission of the grant application to the
Maryland 9-1-1 Board in the amount of $439,002.00 and accept funding as awarded for a new
Inform Solution server.
REPORT-IN-BRIEF: The Maryland 9-1-1 Board was established by the Maryland General
Assembly to coordinate installation and enhancement of county 9-1-1 emergency telephone
number services systems. Washington County Emergency Services is requesting funding for a
new Inform Solution server.
DISCUSSION: Washington County Emergency Services is requesting funding for a new
Inform Solution server. This server will support playback and preservation of all audio
recordings at the various locations of the County’s 911 center.
The Office of Grant Management has reviewed the funding request and has determined the
request is consistent with the Maryland 9-1-1 Systems Boards’ purpose. There is no matching
funds requirement associated with this request.
FISCAL IMPACT: Provides $439,002 for Division of Emergency Services related expenses
which may otherwise be charged to the Emergency Services budget.
CONCURRENCES: Susan Buchanan Director, Office of Grant Management
ALTERNATIVES: Deny approval for submission of this request.
ATTACHMENTS: N/A
AUDIO/VISUAL NEEDS: N/A
Board of County Commissioners of Washington County, Maryland
Agenda Report Form
Open Session Item
SUBJECT: Rancho Grande, LLC Rural Legacy Program (RLP) Easement
PRESENTATION DATE: May 3, 2022
PRESENTATION BY: Chris Boggs, Rural Preservation Administrator, Dept. of Planning & Zoning
RECOMMENDED MOTION: Move to approve the Rancho Grande, LLC RLP Easement project, in the
amount of $650,720.00 for 186.92 easement acres, paid for 100% by the Maryland Department of Natural
Resources, and to adopt an ordinance approving the easement purchase and to authorize the execution of the
necessary documentation to finalize the easement purchase.
REPORT-IN-BRIEF: The Rancho Grande, LLC property is located at 19820 Victor Ln., Knoxville, and the
easement will serve to permanently preserve a valuable agricultural, scenic, environmental and historic property
in the County. The parcel is mostly wooded but does have a significant amount of agricultural land. It lies in a
part of Washington County that was heavily trafficked during the Civil War and the Battle of Antietam. The
property boasts a historic house and spring house on the Maryland Inventory of Historic and borders the DNR
Rails to Trails line. Additionally, the property buffers 6,200 linear feet of Israel Creek and two of its tributaries.
The parcel adds on to a block of thousands of acres of contiguous preserved farmland in South County. Thirteen
(13) development rights will be extinguished with this easement.
DISCUSSION: Since 1998, Washington County has been awarded more than $26 million to purchase Rural
Legacy easements on more than 8,100 acres near Antietam Battlefield in the Rural Legacy Area. RLP is a sister
program to the Maryland Agricultural Land Preservation Program (MALPP) and includes the protection of
environmental and historic features in addition to agricultural parameters. RLP uses an easement valuation
system (points) to establish easement value rather than appraisals used by MALPP. For FY 2022, Washington
County was awarded RLP grants totaling $1,554,300. The Rancho Grande, LLC RLP Easement will use part
those funds. Easement applicants were previously ranked based on four main categories: the number of
development rights available, the quality of the land/land management (agricultural component), natural
resources (environmental), and the historic value.
FISCAL IMPACT: RLP funds are 100% State dollars, mainly from DNR Open Space funds. In addition to
the easement funds, we receive up to 3% of the easement value for administrative costs, a mandatory 1.5% for
compliance/monitoring costs, and funds to cover all of our legal/settlement costs.
CONCURRENCES: Both the State RLP Board and the State Department of Natural Resources (DNR) staff
have approved and support our program. A final money allocation will be approved by the State Board of Public
Works.
ALTERNATIVES: If Washington County rejects State funds for RLP, the funds will be allocated to other
counties in Maryland.
ATTACHMENTS: Aerial Map, Location Map, Ordinance
AUDIO/VISUAL NEEDS: N/A
Board of County Commissioners of Washington County, Maryland
Agenda Report Form
I
I
WARNINGI:ni, map was f., ill—fi- purposes only. It s!,..Id not be —Im or copied. S.,—, of tk d- t.—I-d h— Itti � w end disclaimers
p-,p,
Rancho Grande - Location Map
TVA
Rancho Grande - 186.92 Acres +/
19820 Victor Lane
Knoxville, MD 21758
Roads
- Rancho Grande Property
Preserved Lands or Districts
Q Rural Villages
Agricultural Districts
Forest Easements
CREP Easements
Ag Pres
Parks
Preserved Lands
Municipal Boundaries
WMNINGI:This mapwascreated for illustration purposes only.It shauld not be scaled or copied. Sources ofthe data c-W-d hereon arefra—iaus public agenues which mayhave use r Ittions end d.,I.mers
Created By: Bepartmem of Planning and IDning GIS
S:
ORDINANCE NO. ORD-2022-___
AN ORDINANCE TO APPROVE THE PURCHASE OF A CONSERVATION
EASEMENT UNDER THE MARYLAND RURAL LEGACY PROGRAM
(Re: Rancho Grande, LLC RLP Conservation Easement)
RECITALS
1. The Maryland Rural Legacy Program ("RLP") provides the funding necessary to
protect large, contiguous tracts of land and other strategic areas from sprawl development and
to enhance natural resource, agricultural, forestry, and environmental protection through
cooperative efforts among State and local governments.
2. Protection is provided through the acquisition of easements and fee estates from
willing landowners and the supporting activities of Rural Legacy Sponsors and local
governments.
3. For FY 2022, Washington County (the "County") was awarded a RLP grant totaling
$1,554,300.00 (the "RLP Funds").
4. Rancho Grande, LLC (the "Property Owner") is the fee simple owner of real
property consisting of 186.92 acres, more or less (the "Property"), in Washington County,
Maryland. The Property is more particularly described on Exhibit A attached hereto.
5. The County has agreed to pay the sum of approximately SIX HUNDRED FIFTY
THOUSAND SEVEN HUNDRED TWENTY DOLLARS AND NO CENTS ($650,720.00), which is a
portion of the RLP Funds, to the Property Owner for a Deed of Conservation Easement on the
Property (the “Rancho Grande, LLC RLP Conservation Easement”).
THEREFORE, BE IT ORDAINED by the Board of County Commissioners of Washington
County, Maryland, that the purchase of a conservation easement on the Property be approved
and that the President of the Board and the County Attorney be and are hereby authorized and
directed to execute and attest, respectively, all such documents for and on behalf of the County
relating to the purchase of the Rancho Grande, LLC RLP Conservation Easement.
ADOPTED this ____ day of __________________, 2022.
ATTEST: BOARD OF COUNTY COMMISSIONERS
OF WASHINGTON COUNTY, MARYLAND
_______________________________ BY:
Krista L. Hart, County Clerk Jeffrey A. Cline, President
Approved as to legal sufficiency:
Mail to:
_____________________________ Office of the County Attorney
Kendall Desaulniers 100 W. Washington Street, Suite 1101
Deputy County Attorney Hagerstown, MD 21740
EXHIBIT A - DESCRIPTION OF PROPERTY
ALL those tracts, lots or parcels of land, and all the rights, ways, privileges and
appurtenances thereunto belonging or in anywise appertaining, situate in Election District No.
20, Washington County, Maryland, and being shown and designated as follows:
REMAINING LANDS OF RANCHO GRANDE LLC
L. 1637 F. 993
103.76 AC (Tax Map Parcel 230)
+5.02 AC (Tax Map Parcel 355)
= 108.78 ACRES
AND
LANDS OF RANCHO GRANDE LLC
L. 2274 F. 569
78.14 ACRES
on the Plat entitled “Rural Legacy Plat for Rancho Grande LLC” recorded at Plat Folio 924 among
the Miscellaneous Plat Records of Washington County, Maryland.
BEING part of the property which was conveyed (i) from Norman G. Paul and Nancy Lee
Paul, his wife, to Rancho Grande, LLC (a Maryland limited liability company), by Deed dated
March 16, 2001, and recorded in Liber 1637, folio 993, and (ii) from Robert L. Kaetzel and Virginia
L. Kaetzel, his wife, to Rancho Grande, LLC (a Maryland limited liability company), by Deed
dated March 8, 2004, and recorded in Liber 2274, Folio 569 among the Land Records of
Washington County, Maryland.
TOGETHER WITH A RIGHT OF WAY OR EASEMENT over the Grantor’s lands
identified as “Remaining Lands of Rancho Grande LLC” for access to the lands identified as
“Lands of Rancho Grande LLC” for access to the said “Lands of Rancho Grande LLC”, and
to/from Kaetzel Road.
1
Open Session Item
SUBJECT: County Commissioners of Washington County Public Improvement
Bonds of 2022 Authorizing Resolution
PRESENTATION DATE: May 3, 2022
PRESENTATION BY: Lindsey A. Rader, Bond Counsel for Washington County,
and Kelcee G. Mace, Interim Chief Financial Officer
RECOMMENDED MOTION: Move to approve the resolution authorizing County
Commissioners of Washington County (the “County”) to issue and sell, at public sale, upon its
full faith and credit, a series of general obligation bonds in the original aggregate principal
amount not to exceed $17,045,000 for the purpose of financing or reimbursing costs of certain
public facilities and projects, as presented.
REPORT-IN-BRIEF: Chapter 99 of the Laws of Maryland of 2018 and certain
County Code provisions, as applicable, authorize the County to issue and sell at public sale, upon
its full faith and credit, general obligation bonds for the purpose of financing or reimbursing the
cost of certain public facilities and projects, as such terms are used in such statutory provisions
(see attachment for the contemplated public facilities and projects). The contemplated bonds
will not exceed $17,045,000 in original aggregate principal amount (a maximum of $10,000,000
expected to be tax-supported and a maximum $7,045,000 expected to be self-supported). Certain
details of the bonds are subject to adjustment based on market conditions, due to legal or tax
considerations or for other reasons identified in the resolution. The Chief Financial Officer is
authorized to make certain determinations and adjustments with respect to the bonds prior to
release of the Preliminary Official Statement provided for in the resolution or following such
release but prior to the sale of the bonds, including (without limitation) adjusting the original
aggregate principal amount of the bonds, adjusting the amortization schedule for the bonds,
and/or changing the principal, interest and/or optional redemption dates In addition, authority to
award or reject the bonds at the sale, and to make certain post-sale adjustments contemplated by
the resolution, is delegated to the Chief Financial Officer, who shall act by order. Specified
officials are authorized to finalize the form of the Preliminary Official Statement presented to the
Board and to approve the final Official Statement. The resolution expresses the Board’s
intention that post-receipt of bids adjustments be made on the sale date in order to allocate net
original issue premium resulting from the successful bid not needed for underwriter’s discount,
to the extent such additional net original issue premium is so available, to costs of the public
facilities and projects, thereby reducing the final par amount of the bonds to be issued. The
resolution provides that references to the Chief Financial Officer shall be construed as references
Board of County Commissioners of Washington County, Maryland
Agenda Report Form
2
to the Interim Chief Financial Officer if at the applicable time the position of Chief Financial
Officer has not been filled.
DISCUSSION: Proceeds from the bonds will be used to fund costs of certain
infrastructure, public safety, educational and environmental public facilities and projects. The
amount of bond funding has been reduced by $3,000,000 from the amount originally anticipated.
An environmental project originally budgeted to be funded from bond proceeds has been
eliminated from the financing. Also, the amount of bond funds earmarked for education has
been re-allocated among certain projects since adoption of the fiscal year 2022 Capital Budget.
Issuance costs (other than the underwriter’s discount of the successful bidder for the Bonds) will
be funded from pay-go funds.
FISCAL IMPACT: Annual bond issuance has been included in the County’s annual
debt affordability analysis.
CONCURRENCES: County Administrator and County Attorney
ALTERNATIVES: If the resolution is not approved, it will be necessary to eliminate
the public facilities and projects to be funded from the bonds as detailed in the Capital
Improvement Plan. Also, it will be necessary to determine alternative funding for such public
facilities and projects already in progress.
ATTACHMENTS: Resolution, schedule of public facilities and projects to be funded
from the bonds, and draft Preliminary Official Statement. (Financial Statements and
Supplemental Schedules together with Report of Independent Public Accountants available
online at www.washco-md.net under Budget and Finance Department.)
AUDIO/VISUAL NEEDS: N/A
1
RESOLUTION NO. RS-2022-____
A RESOLUTION AUTHORIZING AND EMPOWERING COUNTY COMMISSIONERS OF
WASHINGTON COUNTY (THE “COUNTY”) TO ISSUE AND SELL AT PUBLIC SALE,
UPON ITS FULL FAITH AND CREDIT, A SERIES OF ITS GENERAL OBLIGATION BONDS
DESIGNATED “COUNTY COMMISSIONERS OF WASHINGTON COUNTY PUBLIC
IMPROVEMENT BONDS OF 2022,” IN THE ORIGINAL AGGREGATE PRINCIPAL
AMOUNT OF $17,045,000, SUBJECT TO REDUCTION AS PROVIDED HEREIN,
PURSUANT TO THE PROVISIONS OF, AS APPLICABLE, CHAPTER 99 OF THE LAWS OF
MARYLAND OF 2018 AND TITLE 6 OF THE CODE OF PUBLIC LOCAL LAWS OF
WASHINGTON COUNTY (2019 EDITION), EACH AS AMENDED AS APPLICABLE, FOR
THE PUBLIC PURPOSES OF FINANCING THE COST OF CERTAIN PUBLIC FACILITIES
AND PROJECTS IN WASHINGTON COUNTY, INCLUDING THE COST OF ACQUISITION,
ALTERATION, CONSTRUCTION, RECONSTRUCTION, ENLARGEMENT, EQUIPPING,
EXPANSION, EXTENSION, IMPROVEMENT, REHABILITATION, RENOVATION,
UPGRADING AND REPAIR OF VARIOUS INFRASTRUCTURE, PUBLIC SAFETY,
EDUCATIONAL AND ENVIRONMENTAL PROJECTS, TOGETHER WITH ANY RELATED
ARCHITECTURAL, FINANCIAL, LEGAL, PLANNING OR ENGINEERING SERVICES;
PRESCRIBING THE TERMS AND CONDITIONS OF SAID BONDS AND THE TERMS AND
CONDITIONS UPON WHICH SAID BONDS SHALL BE ISSUED AND SOLD AND OTHER
DETAILS WITH RESPECT THERETO; PLEDGING THE FULL FAITH AND CREDIT AND
UNLIMITED TAXING POWER OF THE COUNTY TO THE PAYMENT OF THE BONDS
AND PROVIDING THAT, IN THE EVENT FUNDS AVAILABLE TO THE COUNTY ARE
INSUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS, THE
COUNTY SHALL LEVY AND COLLECT AD VALOREM TAXES UPON ALL THE
LEGALLY ASSESSABLE PROPERTY WITHIN WASHINGTON COUNTY SUFFICIENT TO
PROVIDE FOR SUCH PAYMENTS WHEN DUE; PROVIDING FOR THE DISBURSEMENT
OF THE PROCEEDS OF THE BONDS; APPROVING A PRELIMINARY OFFICIAL
STATEMENT AND AUTHORIZING THE PREPARATION AND DISTRIBUTION OF AN
OFFICIAL STATEMENT IN CONNECTION WITH THE ISSUANCE AND SALE OF SAID
BONDS; MAKING CERTAIN FINDINGS CONCERNING DEBT LIMITATIONS OF
WASHINGTON COUNTY; MAKING OR PROVIDING FOR THE MAKING OF CERTAIN
ELECTIONS, COVENANTS OR DETERMINATIONS PERTAINING TO THE TAX-EXEMPT
STATUS OF SAID BONDS; PROVIDING THAT THE PROVISIONS OF THIS RESOLUTION
SHALL BE LIBERALLY CONSTRUED; AND GENERALLY PROVIDING FOR THE
ISSUANCE OF SAID BONDS.
R E C I T A L S
Chapter 99 of the Laws of Maryland of 2018 (the “2018 Act”) authorizes and empowers
County Commissioners of Washington County (the “County”) to issue and sell bonds upon its full
faith and credit in an aggregate principal amount not to exceed $70,000,000 to provide funds to
finance the cost of the construction, improvement or development (within the meaning of the 2018
Act) of certain public facilities (within the meaning of the 2018 Act) in Washington County. To
date, the County has previously issued $514,278 original aggregate principal amount of its County
Commissioners of Washington County Public Improvement Bonds of 2019, $9,060,000 original
2
aggregate principal amount of its County Commissioners of Washington County Public
Improvement Bonds of 2020, and $10,785,626 original aggregate principal amount of its County
Commissioners of Washington County Public Improvement Bonds of 2021 pursuant to the bond
issuing authority provided by the 2018 Act.
Title 6 of the Code of Public Local Laws of Washington County, Maryland (2019 Edition),
as amended to date (the “Water and Sewer Act”), authorizes and empowers the County to issue
bonds upon its full faith and credit to provide funds for the purpose of paying the cost of a water
system, sewerage system or drainage system or any part of such system that the County owns,
constructs or operates (referred to as “projects” in the Water and Sewer Act).
Pursuant to the authority of the 2018 Act and the Water and Sewer Act, as applicable, the
County has determined to issue and sell its general obligation bonds in an original aggregate
principal amount not to exceed $17,045,000 (the “New Money Bonds”) to finance the cost of the
construction, improvement or development (within the meaning of the 2018 Act) of certain public
facilities (within the meaning of the 2018 Act) in Washington County and the cost of certain
projects (within the meaning of the Water and Sewer Act). The New Money Bonds are being
issued to finance the cost of certain public facilities and projects as more particularly described in
Section 2 herein. The issuance of the New Money Bonds shall not cause the County to exceed the
debt limitation provided for in the Water and Sewer Act.
The Water and Sewer Act and the 2018 Act are together referred to as the “Acts”.
The New Money Bonds, as authorized to be issued and sold by this Resolution, are a single
series of bonds for the purposes of financing the cost of certain public facilities and projects in
Washington County, all as described herein, and are referred to in the Sections of this Resolution
as the “Bonds.”
References in this Resolution to “principal amount” or “principal amounts” shall be
construed as “par amount” or “par amounts”, respectively. References in this Resolution to
“finance” or “financing” are deemed to include “reimburse” or “reimbursing”, respectively.
These Recitals constitute an integral part of this Resolution. Capitalized terms used in
these Recitals and not otherwise defined in the following Sections of this Resolution shall have
the meanings given to such terms in these Recitals.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF WASHINGTON COUNTY:
Section 1. The County hereby determines that it is necessary to borrow money and incur
indebtedness pursuant to the authority of the 2018 Act and the Water and Sewer Act, as applicable,
to finance the cost of the public facilities and the projects described in Section 2 hereof.
3
Pursuant to the authority of the 2018 Act and the Water and Sewer Act, as applicable, the
County shall borrow on its full faith and credit the aggregate sum of not to exceed $17,045,000 in
order to provide funds to finance the cost of the construction, improvement or development of
certain public facilities in Washington County (within the meaning of the 2018 Act) and to finance
the cost of certain projects (within the meaning of the Water and Sewer Act), as further described
in Section 2 hereof, and shall evidence such borrowing by the issuance of a series of its general
obligation bonds in the original aggregate principal amount not to exceed $17,045,000 and
designated “County Commissioners of Washington County Public Improvement Bonds of 2022”
(the “Bonds” or, individually, each a “Bond”).
The Chief Financial Officer of the County (who constitutes the Director of the Office of
Budget and Finance for purposes of the County Code, the “Chief Financial Officer”), on behalf of
the County, with the advice of the financial advisor to the County and bond counsel to the County,
is hereby authorized from time to time prior to the sale of the Bonds to adjust the original aggregate
principal amount of the Bonds as set forth in Section 3 hereof upward or downward (so long as
such original aggregate principal amount, as adjusted, does not exceed $17,045,000), to eliminate
one or more of the maturities of the Bonds provided for in Section 3 hereof and/or to adjust the
original aggregate principal amounts of each maturity of the Bonds upward or downward, due to
tax considerations, due to market considerations, in order to restructure the amortization schedule
for the Bonds to meet financial considerations impacting the County, to account for anticipated
original issue premium so as to avoid an over-issuance problem and/or in order to reduce the par
amount of the Bonds needed due to anticipated original issue premium, and/or to reduce the
proceeds of the Bonds to be applied to any of the contemplated public facilities or projects provided
for in Section 2 hereof due to the availability of other funds for such public facilities or projects or
based on a decision of the Board of County Commissioners of Washington County (the “Board”)
made after this Resolution is adopted to reduce the proceeds of the Bonds to be applied to any
particular public facilities or projects, and any such adjustment (i) shall be reflected in the
Preliminary Official Statement provided for in Section 19 hereof if such determination is made
prior to the release of such Preliminary Official Statement or (ii) shall be communicated in
accordance with the provisions of the official Notice of Sale provided for in Section 11 hereof if
such determination is made after the release of such Preliminary Official Statement.
The final original aggregate principal amount of the Bonds, the final maturities of the
Bonds and the final original aggregate principal amount of each maturity of the Bonds will be
determined in accordance with an order or orders of the Chief Financial Officer delivered in
conjunction with the award of the Bonds in accordance with the provisions of Section 12 hereof.
It is the stated intention of the Board that, to the extent available for such purpose, any net
original issue premium resulting from the successful bidder’s bid for the Bonds available after
accounting for the underwriter’s discount of the successful bidder for the Bonds payable from such
net original issue premium (as adjusted if applicable) be allocated to the purposes contemplated in
Section 2 of this Resolution, thereby reducing the par amount of the Bonds to be issued for such
purposes specified in Section 2. Any rounding amounts attributable to the fact that the Bonds must
be issued in denominations of $5,000 and integral multiples thereof shall also be applied to the
purposes specified in Section 2 hereof. Costs of issuance of the Bonds, other than underwriter’s
4
discount payable to the successful bidder for the Bonds from proceeds of net original issue
premium, shall be paid by the County from funds on hand.
Section 2. Subject to adjustments made in connection with the sale of the Bonds (including
as contemplated in Section 1 hereof or to provide for the application of net original issuance
premium received in connection with the sale and issuance of the Bonds), the projects (“projects”
shall be deemed to include the public facilities contemplated by the 2018 Act) and purposes on
account of which the Bonds are issued and the approximate amount of the par value of proceeds
of the Bonds allocated to each class of projects are identified as follows:
Notwithstanding the foregoing allocation, the County, without notice to or the consent of the
registered owners of the Bonds, may (i) reallocate the approximate amount of the par value of the
proceeds of the Bonds, and (ii) allocate and reallocate any net original issue premium received by the
County with respect to the sale of the Bonds, to be spent among the projects referenced above (as
such projects may be further identified in materials provided or available to the Board or in resolutions
of the Board) in compliance with applicable County budgetary procedures or applicable law. If the
original aggregate par amount of the Bonds is reduced prior to or in connection with the sale of the
Bonds as contemplated by this Resolution, such reduction and the allocation of any net original issue
premium to the uses specified in the table above may be reflected in the certificate executed and
delivered by authorized County officials in accordance with the provisions of Section 14 of this
Resolution. In addition, without notice to or the consent of the registered owners of the Bonds, the
County may reallocate the par amount or other proceeds of the Bonds to projects not originally
contemplated by this Resolution in accordance with the provisions of the Acts and any other
applicable law.
Section 3. (a) The Bonds shall be dated their dated date and shall be issued in the
denominations of $5,000 each or any integral multiple thereof. The Bonds shall bear interest from
their dated date. Subject to the further provisions of this Section 3, interest on the Bonds shall be
payable on January 1, 2023 and on each July 1 and January 1 thereafter until maturity or, as
applicable, prior redemption. Each January 1 or July 1 on which interest is due on the Bonds is
referred to herein as an “Interest Payment Date”. Interest shall be calculated on a 30-day
month/360-day year basis.
(b) Subject to the provisions of this Resolution, the Bonds shall mature or be subject to
mandatory sinking fund redemption as designated by the successful bidder for the Bonds, on July
1 of the years and in the amounts as follows:
[CONTINUED ON FOLLOWING PAGE]
5
Note: The original aggregate principal amount of, and original aggregate principal amount of each
maturity of, the Bonds, is subject to adjustment prior to sale as provided in Section 1 hereof and
in the official Notice of Sale provided for in Section 11 hereof. In addition, the original aggregate
principal amount of, and/or the original aggregate principal amount of each maturity of, the Bonds
is subject to adjustment after receipt of bids in accordance with the provisions of the official Notice
of Sale provided for in Section 11 hereof. The final original aggregate principal amount of the
Bonds, as issued, shall not exceed $17,045,000.
(c) The foregoing provisions of this Section 3 are also subject to the provisions of
Sections 1, 11 and 12 hereof.
(d) Subject to the provisions of Section 11 hereof, each Bond shall bear interest from
its dated date if no interest payment has been paid or from the most recent Interest Payment Date
to which interest has been paid or duly provided for; provided, however, that each Bond
authenticated after the Record Date (as hereinafter defined) for any Interest Payment Date, but
prior to such Interest Payment Date, shall bear interest from such Interest Payment Date. Interest
on the Bonds shall be paid at the rate or rates named by the successful bidder for the Bonds in
accordance with the terms of the official Notice of Sale hereinafter provided for.
(e) The County hereby appoints Manufacturers and Traders Trust Company, a New
York state banking corporation with trust powers, as bond registrar and as paying agent for the
Bonds (the “Bond Registrar and Paying Agent”).
(f) The principal of and interest on the Bonds shall be payable in such money of the
United States of America as is lawful at the time of payment.
So long as the Bonds are maintained in Book-Entry Form (as hereinafter defined),
payments of principal or redemption price of the Bonds shall be made as described in Section 5
hereof. At any other time, the principal or redemption price of each Bond shall be paid upon
presentment and surrender of such Bond on the date such principal or redemption price is payable
or if such date is not a Business Day (as hereinafter defined) then on the next succeeding Business
Day at the designated corporate trust office of the Bond Registrar and Paying Agent.
6
Interest on each Bond shall be payable to the person in whose name such Bond is registered
(the “Registered Owner”) on the registration books maintained for the Bonds as of the close of
business on the 15th calendar day of the month immediately preceding each Interest Payment Date
(the “Record Date”). So long as the Bonds are maintained in Book-Entry Form, payment of
interest on the Bonds shall be made as described in Section 5 hereof. At any other time, payment
of the interest on each Bond shall be made by check mailed on the date such interest is payable or,
if such date is not a Business Day, then the next succeeding Business Day to the address of such
Registered Owner as it appears on said registration books for the Bonds (the “Bond Register”).
“Business Day” means a day other than a Saturday, a Sunday or a day on which the Bond
Registrar and Paying Agent is authorized or obligated by law or required by executive order to
remain closed.
(g) The interest on any Bond which is payable, but is not punctually paid or duly
provided for, on the appropriate Interest Payment Date shall forthwith cease to be payable to the
Registered Owner thereof by virtue of having been such Registered Owner on the relevant Record
Date; and such interest shall be paid by the Bond Registrar and Paying Agent to the person in
whose name the Bond (or its predecessor Bond) is registered at the close of business on a date to
be fixed by the Bond Registrar and Paying Agent for the payment of such interest, notice thereof
being given by first class mail (postage prepaid) to said person not fewer than 30 days prior to such
special record date, at the address of such person appearing on the Bond Register, or may be paid
at any time in any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Bonds may be listed and upon such notice as may be required by such
exchange.
Section 4. The Bonds shall be issued as fully registered bonds registered on the Bond
Register kept for that purpose by the Bond Registrar and Paying Agent, and shall be registered and
transferred in accordance with the terms and conditions set forth in the Bonds. The Bonds shall be
initially issued in the form of authenticated, fully registered Bonds in the principal amount of each
separate maturity of the Bonds.
Section 5. The provisions of this Section 5 shall apply to the Bonds so long as the Bonds
shall be maintained in Book-Entry Form with a Depository (as hereinafter defined), any other
provisions of this Resolution to the contrary notwithstanding.
A system for registration of the Bonds in Book-Entry Form with a Depository, which shall
initially be The Depository Trust Company (“DTC”), shall be in effect on the date of the issuance
and delivery of the Bonds.
(a) Upon initial issuance and delivery, one fully registered bond for the original
aggregate principal amount of each maturity of the Bonds will be registered in the name of Cede
& Co., as nominee for DTC, and immobilized in the custody of DTC or held by the Bond Registrar
and Paying Agent on DTC’s behalf through DTC’s “FAST” system.
(b) Transfer of ownership interests in the Bonds will be accomplished by book entries
made by the Depository and, in turn, by the direct or indirect participants (the “Participants”) who
7
act on behalf of the ultimate purchasers of the Bonds (the “Beneficial Owners”). The Beneficial
Owners will not receive certificates representing their ownership in the Bonds, except as hereafter
provided.
(c) The principal or redemption price (if any) of and interest on the Bonds shall be
payable to the Depository, or registered assigns, as the registered owner of the Bonds, in same day
funds on each date on which the principal or redemption price of (if any) or interest on the Bonds
is due as provided for in this Resolution and in the Bonds or as otherwise required by the
Depository. Such payments shall be made to the offices of the Depository specified by the
Depository to the Bond Registrar and Paying Agent. Without notice to or the consent of the holders
of the Bonds, the County, the Bond Registrar and Paying Agent and the Depository may agree in
writing to make payments of principal and interest in a manner different from that set out herein;
no such written agreement shall be required if a change is provided for in the Depository’s
operational arrangements. Neither the County nor the Bond Registrar and Paying Agent shall have
any obligation with respect to the transfer or crediting of the appropriate principal and interest
payments to the Participants or the Beneficial Owners or their nominees.
(d) The County may replace any Depository as the securities depository for the Bonds
with another Depository or discontinue the maintenance of the Bonds with any Depository if (i)
the County, in its sole discretion, determines that any (A) such Depository is incapable of
discharging its duties with respect to the Bonds, or (B) the interests of the Beneficial Owners might
be adversely affected by the continuation of the Book-Entry System (as hereinafter defined) with
such Depository as the securities depository for the Bonds, or (ii) such Depository determines not
to continue to act as a securities depository for the Bonds or is no longer permitted to act as such
securities depository. Notice of any determination pursuant to clause (i) shall be given to such
Depository at least 30 days prior to any such discontinuance (or such fewer number of days as
shall be acceptable to such Depository). Neither the County nor the Bond Registrar and Paying
Agent will have any obligation to make any investigation to determine the occurrence of any events
that would permit the County to make any determination described in this paragraph.
(e) If, following a determination or event specified in subsection (d) above, the County
discontinues the maintenance of the Bonds in Book-Entry Form, the County will issue replacement
bonds (the “Replacement Bonds”) directly to the applicable Participants as shown on the records
of the Depository or, to the extent requested by any Participant, to the Beneficial Owners of the
Bonds as further described in this Section. The Bond Registrar and Paying Agent shall make
provisions to notify the applicable Participants and the applicable Beneficial Owners by mailing
an appropriate notice to the Depository, or by other means deemed appropriate by the Bond
Registrar and Paying Agent in its discretion, that the County will issue Replacement Bonds directly
to the Participants shown on the records of the Depository or, to the extent requested by any
Participant, to Beneficial Owners of the Bonds shown on the records of such Participant, as of a
date set forth in such notice, which shall be a date at least 10 days after receipt of such notice by
the Depository (or such fewer number of days as shall be acceptable to the Depository).
In the event that Replacement Bonds are to be issued to the Participants or to the Beneficial
Owners with respect to the Bonds, the Bond Registrar and Paying Agent shall promptly have
prepared Replacement Bonds registered in the names of such Participants as shown on the records
8
of the Depository or, if requested by such Participants, in the names of the Beneficial Owners of
the Bonds, as shown on the records of such Participants as of the date set forth in the notice
delivered in accordance with the immediately preceding paragraph. Replacement Bonds issued to
Participants or to Beneficial Owners shall be in the authorized denominations, be payable as to
principal and interest on the same dates as the Bonds, with interest being payable by check or draft
mailed to each registered owner at the address of such owner as it appears on the Bond Register
and principal being payable upon presentation to the Bond Registrar and Paying Agent, and be in
fully registered form.
Replacement Bonds issued to a Depository shall have the same terms, form and content as
the Bonds initially registered in the name of the Depository to be replaced or its nominee except
for the name of the record owner.
(f) The Depository and its Participants and the Beneficial Owners, by their acceptance
of the Bonds, agree that neither the County nor the Bond Registrar and Paying Agent shall have
any liability for the failure of the Depository to perform its obligations to the Participants and the
Beneficial Owners, nor shall the County or the Bond Registrar and Paying Agent be liable for the
failure of any Participant or other nominee of the Beneficial Owners to perform any obligation to
the Beneficial Owners of the Bonds.
For purposes of this Section 5, the following words have the following meanings:
“Book-Entry Form” or “Book-Entry System” means a form or system, as applicable, under
which (i) the ownership of beneficial interests in the Bonds may be transferred only through a
book-entry and (ii) physical bond certificates in fully registered form are registered only in the
name of a Depository or its nominee as holder, with the physical bond certificates “immobilized”
in the custody of the Depository or in the custody of the Bond Registrar and Paying Agent on
behalf of the Depository.
“Depository” means any securities depository that is a “clearing corporation” within the
meaning of the New York Uniform Commercial Code and a “clearing agency” registered pursuant
to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended, operating
and maintaining, with its participants or otherwise, a Book-Entry System to record ownership of
beneficial interests in municipal bonds, and to effect transfers of municipal bonds, in Book-Entry
Form, and includes and means initially The Depository Trust Company.
Section 6. (a) The Bonds that mature on or before July 1, 2032 are not subject to
redemption at the option of the County prior to their maturities. The Bonds that mature on and
after July 1, 2033 shall be redeemable at the option of the County, in whole or in part, on any date
on or after July 1, 2032, in any order directed by the County, at a redemption price of the principal
amount of the Bonds (or portions thereof) to be redeemed, plus accrued interest on the principal
amount being redeemed to the date fixed for redemption, without premium or penalty. The
particular maturities or portions of maturities of the Bonds to be so redeemed shall be determined
in the sole discretion of the County.
9
(b) The provisions relating to the optional redemption of the Bonds and the mandatory
sinking fund redemption of the Bonds (if applicable) are provided for in the form of Bond set forth
in Section 8 hereof.
(c) Notwithstanding any provisions contained herein, during any period in which the
Bonds are maintained pursuant to a Book-Entry System, redemption of the Bonds shall occur in
accordance with the Depository’s standard procedures for redemption of obligations such as the
Bonds.
(d) The provisions of this Section 6 are also subject to the provisions of Section 11
hereof.
Section 7. The Bonds, when issued, shall be executed in the name of the County by the
President or the Vice President of the Board, by manual or facsimile signature. The seal of, or a
facsimile of the seal of, the County shall be impressed, affixed or imprinted on the Bonds, and the
Bonds shall be attested by the County Clerk, by manual or facsimiles signature. The Bonds shall
be authenticated by the Bond Registrar and Paying Agent, by manual signature. The provisions
of this paragraph are subject to the provisions of Section 21(c) of this Resolution.
In the event any official of the County whose signature shall appear on any Bond described
in this Resolution shall cease to be such official prior to the delivery of said Bond, his or her
signature shall nevertheless be valid, sufficient and binding for the purposes herein intended.
There shall be printed on or attached to each of the Bonds the text of or a copy of the
approving legal opinion of Bond Counsel with respect to the Bonds. Such printed text or opinion
copy shall be certified by the manual or facsimile signature of the President or the Vice President
of the Board to be a true and complete copy of such text or such opinion as delivered to the County
on the date of delivery of the Bonds to the original purchasers thereof.
Section 8. The Bonds shall be in substantially the following form, which form together
with all of the terms, covenants and conditions therein contained, is hereby adopted by the County
as and for the form of obligation to be incurred by it, and said terms, covenants and conditions are
hereby made binding upon the County, including the promise to pay therein contained, in
accordance with said form:
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(Form of Face of Bond)
Note: Bracketed language is intended to reflect that such provisions apply only in certain
circumstances, and such language shall be deleted from or included in the final form of the
Bonds, as appropriate.
UNITED STATES OF AMERICA
STATE OF MARYLAND
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
PUBLIC IMPROVEMENT BOND OF 2022
No. R-___ $______________________
Registered Owner: Cede & Co.
Principal Amount: Dollars
County Commissioners of Washington County, a body politic and corporate organized and
existing under the Constitution and laws of the State of Maryland (the “County”), hereby
acknowledges itself indebted for value received and, upon surrender hereof, promises to pay to the
Registered Owner shown above, or his registered assigns, on the Maturity Date shown above,
unless, to the extent applicable, this bond shall have been called for prior redemption and payment
of the redemption price made or provided for, the Principal Amount shown above, and to pay
interest on the outstanding principal amount hereof from the later of the Bond Date shown above
and the most recent Interest Payment Date (as hereinafter defined) to which interest has been paid
or provided for; provided, however, if this bond is authenticated after a Record Date (as hereinafter
defined) for any Interest Payment Date and before such Interest Payment Date, it shall bear interest
from such Interest Payment Date.
Interest on this bond shall be paid at the Annual Interest Rate shown above, payable on
January 1, 2023 and semiannually thereafter on July 1 and January 1 in each year (the “Interest
Payment Dates”) until payment of such Principal Amount shall be discharged as provided in the
Resolution (as hereinafter defined). Such interest shall be paid to the person in whose name this
bond is registered on the registration books for the series of bonds of which this bond is one (the
“Bond Register”) maintained by the Bond Registrar and Paying Agent (as hereinafter defined) at
the close of business on the 15th calendar day of the month next preceding each Interest Payment
Date (the “Record Date”). Interest shall be calculated on a 30-day month/360-day year basis.
11
Notwithstanding the preceding sentence, interest on this bond which is payable, but is not
punctually paid or duly provided for, on any Interest Payment Date shall forthwith cease to be
payable to the Registered Owner by virtue of having been such Registered Owner on the relevant
Record Date and such interest shall be paid by Manufacturers and Traders Trust Company, as the
bond registrar and as the paying agent (such entity, or its successors or assigns, the “Bond Registrar
and Paying Agent”) to the person in whose name this bond (or its predecessor bond) is registered
at the close of business on a date fixed by the Bond Registrar and Paying Agent for the payment
of such interest, notice thereof being given by first class mail, postage prepaid, to said person not
fewer than 30 days prior to such special record date, at the address of such person appearing on
the Bond Register, or may be paid at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange on which this bond may be listed and upon such notice
as may be required by such exchange.
Principal or redemption price of and interest on this bond are payable in such money of the
United States of America as is lawful at the time of payment. If a principal payment date or interest
payment date falls on a Saturday, a Sunday or a day on which the Bond Registrar and Paying Agent
is authorized or obligated by law or required by executive order to remain closed, payment may
be made on the next succeeding day that is not a Saturday, a Sunday or a day on which the Bond
Registrar and Paying Agent is authorized or obligated by law or required by executive order to
remain closed, and no interest shall accrue on the scheduled amount due for the intervening period.
This bond is one of an issue of bonds limited in original aggregate principal amount to
$_____________, all dated the date of delivery and all known as “County Commissioners of
Washington County Public Improvement Bonds of 2022” (the “Bonds”). The Bonds are issued as
registered bonds, without coupons, in the denominations of $5,000 or any integral multiple thereof.
The Bonds are numbered consecutively from No. 1 upward and mature on July 1 in the years and
in the amounts and bear interest at the annual rates, all as set forth below:
Maturing Principal Interest Maturing Principal Interest
[(1) Denotes maturity date of a term bond.]
[AMORTIZATION SCHEDULE FOR THE BONDS TO BE COMPLETED FOLLOWING
PRICING]
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[Include the following for each maturity constituting a term bond only to extent the
successful bidder for the Bonds designates term bonds--The Bonds maturing on July 1, _____ are
subject to mandatory sinking fund redemption at a redemption price equal to 100% of the principal
amount thereof, together with interest accrued to the date fixed for redemption, on the dates and
in the principal amounts set forth below:
Mandatory Sinking
Redemption Date Fund Installment]
______
* Final maturity.
The Bonds that mature on or before July 1, 2032 are not subject to redemption at the option
of the County prior to their respective maturities. The Bonds that mature on and after July 1, 2033
are subject to redemption at the option of the County, in whole or in part, on any date on or after
July 1, 2032, in any order directed by the County, at a redemption price of the principal amount of
the Bonds (or portions thereof) to be redeemed, plus accrued interest on the principal amount being
redeemed to the date fixed for redemption, without premium or penalty.
If fewer than all of the Bonds of any one maturity shall be called for redemption, then the
particular Bonds of such maturity to be redeemed in whole or in part shall be selected by such
means and in such manner as the Bond Registrar and Paying Agent, in its sole discretion, shall
determine. Each $5,000 principal amount of any Bond shall be considered a separate Bond for the
purposes of selection of Bonds for redemption.
If all or a portion of the Bonds outstanding are to be redeemed, the County shall give or
cause to be given notice of such redemption by first class mail, postage prepaid, at least 30 days
prior to the date fixed for redemption to each registered owner of a Bond to be redeemed in whole
or in part at the address of such registered owner appearing on the Bond Register. The failure to
mail the redemption notice or any defect in the notice so mailed shall not affect the validity of the
redemption proceedings. The County may, but shall not be obligated to, publish such notice of
redemption at least once not fewer than 30 days prior to the date fixed for redemption in a
newspaper circulating in the City of Baltimore, Maryland and also in a financial journal or daily
newspaper of general circulation published in the City of New York, New York. The redemption
notice shall state (i) whether the Bonds are to be redeemed in whole or in part and, if in part, the
maturities, numbers, interest rates and CUSIP numbers of the Bonds to be redeemed, (ii) in the
case of a partial redemption of any Bond, the portion of the principal amount which is to be
redeemed, (iii) that interest shall cease to accrue on the Bonds (or portions thereof) called for
redemption on the date fixed for redemption, (iv) the date fixed for redemption and the redemption
price, (v) the address of the Bond Registrar and Paying Agent with a contact person and phone
number, and (vi) that the Bonds to be redeemed in whole or in part shall be presented for
redemption and payment on or after the date fixed for redemption at the designated corporate trust
office of the Bond Registrar and Paying Agent. Any such notice may be conditioned upon receipt
by the Bond Registrar and Paying Agent of sufficient funds to effect such redemption.
13
From and after the date fixed for redemption, if monies sufficient for the payment of the
redemption price of the Bonds (or portions thereof) called for redemption plus accrued interest due
thereon to the date fixed for redemption are held by the Bond Registrar and Paying Agent on such
date, the Bonds (or portions thereof) so called for redemption shall become due and payable at the
redemption price provided for redemption of such Bonds (or portions thereof) on such date, interest
on such Bonds (or portions thereof) shall cease to accrue and the registered owners of such Bonds
so called for redemption in whole or in part shall have no rights in respect thereof except to receive
payment for the redemption price thereof plus accrued interest thereon to the date fixed for
redemption from such monies held by the Bond Registrar and Paying Agent. Upon presentation
and surrender of a Bond called for redemption in whole or in part, the Bond Registrar and Paying
Agent shall pay the appropriate redemption price of such Bond plus accrued interest thereon to the
date fixed for redemption. If Bonds (or portions thereof) so called for redemption are not paid
upon presentation and surrender as described above, such Bonds shall continue to bear interest at
the rates stated therein until paid.
In case part but not all of a Bond shall be selected for redemption, then, upon the surrender
thereof, there shall be issued without charge to the registered owner thereof Bonds in any of the
authorized denominations as specified by the registered owner. The aggregate principal amount of
Bonds so issued shall be equal to the unredeemed balance of the principal amount of the Bond
surrendered, and the Bonds issued shall bear the same interest rate and shall mature on the same
date as the Bond surrendered.
[TO BE USED FOR BONDS IN BOOK-ENTRY FORM ONLY --So long as all of the Bonds
shall be maintained in book-entry form with a Depository (as defined in the Resolution) in
accordance with Section 5 of the Resolution, in the event that part, but not all, of this bond shall
be called for redemption, the holder of this bond may elect not to surrender this bond in exchange
for a new Bond or Bonds and in such event shall make a notation indicating the principal amount
of such redemption and the date thereof on the Payment Grid attached hereto. For all purposes,
the principal amount of this bond outstanding at any time shall be equal to the lesser of (A) the
Principal Amount shown on the face hereof and (B) such Principal Amount reduced by the
principal amount of any partial redemption of this bond following which the holder of this bond
has elected not to surrender this bond. The failure of the holder hereof to note the principal amount
of any partial redemption on the Payment Grid attached hereto, or any inaccuracy therein, shall
not affect the payment obligation of the County hereunder. THEREFORE, IT CANNOT BE
DETERMINED FROM THE FACE OF THIS BOND WHETHER A PART OF THE PRINCIPAL
OF THIS BOND HAS BEEN PAID.
Unless this bond is presented by an authorized representative of The Depository Trust
Company, a limited-purpose trust company organized under the New York Banking Law (“DTC”),
to the County or its agent for registration of transfer, exchange, or payment, and any bond issued
is registered in the name of Cede & Co. or in such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
inasmuch as the registered owner hereof, Cede & Co., has an interest herein.]
14
The Bonds are issued pursuant to the authority of Chapter 99 of the Laws of Maryland of
2018 and Title 6 of the Code of Public Local Laws of Washington County (2019 Edition), each as
amended to date (collectively, the “Act”), and in accordance with Resolution No. RS-2022-__ of
the Board of County Commissioners of the County adopted on _____________, 2022 (the
“Resolution”).
The Bonds will be transferable only upon the Bond Register by the Bond Registrar and
Paying Agent. Any Bond presented for transfer, exchange, registration or payment (if so required
by the Bond Registrar and Paying Agent) shall be accompanied by a written instrument or
instruments of transfer or authorization for exchange, in form and with guaranty of signature
satisfactory to the Bond Registrar and Paying Agent, duly executed by the registered owner thereof
or by his duly authorized attorney. Upon any transfer or exchange, the County shall execute and
the Bond Registrar and Paying Agent shall authenticate and deliver in the name of the registered
owner or the transferee or transferees, as the case may be, a new registered Bond or Bonds, in any
of the authorized denominations in an aggregate principal amount equal to the principal amount of
the Bond exchanged or transferred and maturing on the same date and bearing interest at the same
rate. In each case, the County and the Bond Registrar and Paying Agent may require payment by
the registered owner requesting the exchange or transfer of any tax, fee or other governmental
charge, shipping charges and insurance that may be required to be paid with respect thereto, but
otherwise no charge shall be made to the registered owner for the exchange or transfer.
The Bond Registrar and Paying Agent shall not be required to transfer or exchange any
Bond after the mailing of notice calling such Bond or portion thereof for redemption; provided,
however, that this limitation shall not apply to any portion of a Bond which is not being called for
redemption.
It is hereby certified and recited that each and every act, condition and thing required to
exist, to be done, to have happened and to be performed precedent to and in the issuance of this
bond, does exist, has been done, has happened and has been performed in full and strict compliance
with the Constitution and laws of the State of Maryland and the Resolution authorizing the issuance
of the issue of bonds, of which this bond is one, and that said issue of bonds, together with all other
indebtedness of the County, is within every debt and other limit prescribed by the Constitution and
laws of said State. This bond is an obligation of the County, payable as provided in the Resolution,
and the full faith and credit and unlimited taxing power of County Commissioners of Washington
County are hereby irrevocably pledged to the payment of the principal of this bond and of the
interest to accrue hereon at the dates and in the manner mentioned herein.
This bond shall not be valid or become obligatory for any purpose or be entitled to any
benefit or security under the Resolution until the Certificate of Authentication endorsed hereon
shall have been signed by an authorized signatory of the Bond Registrar and Paying Agent.
15
IN WITNESS WHEREOF, the County has caused this bond to be executed in its name by
the [Vice] President of the Board of County Commissioners of Washington County and attested
by the County Clerk, and has also caused its corporate seal to be affixed or imprinted hereon.
(SEAL)
ATTEST: COUNTY COMMISSIONERS OF
WASHINGTON COUNTY
By:____________________ By:______________________________________
County Clerk [Vice] President, Board of
County Commissioners of Washington County
16
CERTIFICATE OF AUTHENTICATION
Date of Authentication:
This bond is one of the registered bonds of County Commissioners of Washington County
designated “County Commissioners of Washington County Public Improvement Bonds of 2022”.
MANUFACTURERS AND TRADERS TRUST COMPANY,
as Bond Registrar and Paying Agent
By: ____________________________________________
Authorized Signatory
17
PAYMENT GRID
Date of Principal Principal Holder
Payment Amount Paid Amount Outstanding Signature
__________ ____________ _________________ ______________
__________ ____________ _________________ ______________
__________ ____________ _________________ ______________
__________ ____________ _________________ ______________
__________ ____________ _________________ ______________
__________ ____________ _________________ ______________
__________ ____________ _________________ ______________
__________ ____________ _________________ ______________
__________ ____________ _________________ ______________
__________ ____________ _________________ ______________
__________ ____________ _________________ ______________
__________ ____________ _________________ ______________
__________ ____________ _________________ ______________
18
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
_________________ (Tax Identification or Social Security No.______________) the within bond
and all rights thereunder, and does hereby constitute and appoint _______________ attorney to
transfer the within bonds on the books kept for the registration thereof, with full power of
substitution in the premises.
Dated:
Signature Guaranteed:
___________________________ ____________________________
NOTICE: Signatures must be (Signature of Registered Owner)
guaranteed by a member firm of NOTICE: Signature must correspond
the New York Stock Exchange or with the name of the Registered
a commercial bank or trust Owner of the within bond as it
company appears on the face of the within
bond in every particular, without
alteration or enlargement or any
change whatever
19
IT IS HEREBY CERTIFIED that the following is [the text of] [a true and correct copy of]
the complete legal opinion of Funk & Bolton, P.A., Baltimore, Maryland, with respect to the issue
of bonds of which this bond is one, that the original of said opinion was manually executed, dated
and issued as of the date of delivery of, and payment for, said issue of bonds by the original
purchaser thereof, and that an executed copy thereof is on file with the Bond Registrar and Paying
Agent.
COUNTY COMMISSIONERS OF
WASHINGTON COUNTY
By: _________________________________________
[Vice] President, Board of
County Commissioners of Washington County
(Insert or Attach Text of or Copy of Opinion of Bond Counsel)
(End of Form of Bond)
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Section 9. The President or the Vice President of the Board shall be and is hereby
authorized to make such changes in the form of bond set forth in Section 8 hereof as the President
or the Vice President shall deem necessary to carry into effect the provisions of this Resolution,
including, without limitation, to include or remove bracketed provisions set forth in the form of
Bond provided for in Section 8 hereof, to reflect matters determined in accordance with Sections
1, 3, 11, or 12 hereof, or to comply with recommendations of bond counsel to the County; provided,
however, that the President or the Vice President shall make no change materially affecting the
substance of such form unless such change is determined by the Chief Financial Officer, with the
advice of the financial advisor to the County, to be in the best interest of the County.
The execution of the Bonds by such officer shall be conclusive evidence of the approval
by the County of all changes in the form of the Bonds and of the due execution of the Bonds by
the County.
Section 10. No Bond shall be valid or obligatory for the purpose or entitled to any
security or benefit under this Resolution unless and until a certificate of authentication of such
Bond substantially in the form hereinabove provided shall have been duly executed by the Bond
Registrar and Paying Agent and such executed certificate of the Bond Registrar and Paying Agent
on such Bond shall be conclusive evidence that such Bond has been authenticated and delivered
under this Resolution. The Bond Registrar and Paying Agent’s certificate of authentication on any
Bond shall be deemed to have been executed by it if signed by an authorized officer or signatory
of the Bond Registrar and Paying Agent. It shall not be necessary that the same officer or signatory
of the Bond Registrar and Paying Agent sign the certificate of authentication on all the Bonds
issued hereunder.
Section 11. The Bonds shall be sold at public sale by electronic bids only to the bidder
therefor for cash whose bid results in the lowest true interest cost to the County in the manner and
in accordance with the formula set forth in the form of Notice of Sale attached as Appendix C to
the Preliminary Official Statement identified in Section 19 hereof and made a part hereof (the
“Notice of Sale”), as such Notice of Sale may be modified as provided in this Resolution and
therein. Electronic bids for the Bonds shall be received by the Chief Financial Officer on May 24,
2022, subject to the further provisions of this Section 11. The Chief Financial Officer shall be and
is hereby authorized to make such changes in the form of Notice of Sale set forth in the form of
the Preliminary Official Statement provided to the Board with this Resolution as the Chief
Financial Officer shall deem necessary to carry into effect the purposes of this Resolution
(including, without limitation, to reflect matters determined in accordance with Sections 1 or 3
hereof or this Section 11) or to comply with recommendations of bond counsel to the County, or,
with the advice of the financial advisor to the County, to be in the best interest of the County,
including, without limitation, (i) modifying or limiting the manner in which the issue price of the
Bonds will be determined, (ii) modifying or limiting the premium payable by a bidder for the
Bonds, (iii) modifying the manner of adjusting the amortization schedule for the Bonds pre- or
post-sale, adding, (iv) modifying or eliminating any maximum interest rate for the Bonds, (v)
adding, modifying or eliminating any stated maximum spread between the lowest and highest
interest rates eligible to be bid by a bidder, or (vi) modifying the amount of or method of delivery
for the good faith deposit. The Chief Financial Officer, upon the advice of the financial advisor to
the County, is authorized to adjust the original aggregate principal amounts of the Bonds and the
21
maturities thereof in the manner and in accordance with Sections 1 or 3 hereof and this Section 11
and the Notice of Sale. The form of the Notice of Sale as contained in the final Preliminary Official
Statement, as the same may be modified in accordance with the provisions thereof and hereof,
shall constitute the official Notice of Sale.
Notwithstanding any other provision hereof, the Chief Financial Officer shall be and
hereby is authorized to accept electronic bids for the Bonds, and to make such adjustments to the
official Notice of Sale in the manner provided for therein as the Chief Financial Officer shall deem
necessary or advisable, upon the advice of bond counsel to the County or the financial advisor to
the County, including to accomplish electronic bidding procedures, to change the bid
specifications for the Bonds or to comply with applicable regulations, notices and other official
guidance.
In view of the desirability of flexibility in the scheduling of the sale of the Bonds to take
full advantage of shifts in market conditions, the County determines that it is in the best interest of
the County to authorize and empower the Chief Financial Officer to change the time of or cancel
said sale at any time prior to May 24, 2022, and to reschedule said sale without publishing a new
Notice of Sale or advertisement, if (i) the financial advisor to the County has advised the Chief
Financial Officer that market conditions or other scheduling considerations are such that it is in
the best interest of the County to do so, and (ii) the Chief Financial Officer concurs in such
recommendation to cancel and/or reschedule the sale. The Chief Financial Officer may cancel and
reschedule any rescheduled sale in accordance with phrases (i) and (ii) of the preceding sentence.
If the date of sale is rescheduled as provided above, the Chief Financial Officer may also
reschedule the date of delivery of the Bonds, which is currently scheduled for June 7, 2022. If the
sale is postponed to a date later than June 30, 2022, the Chief Financial Officer may also change
the dated date of the Bonds (and hence the date from which interest shall accrue), the dates of the
semi-annual interest payments and annual principal payments, the optional redemption dates, and
the mandatory sinking fund redemption dates, if any, accordingly.
The Notice of Sale authorized by this Resolution shall be substantially in the form set forth
in Appendix C to the form of the Preliminary Official Statement presented to the Board, and the
terms, provisions and conditions set forth in the final form of the Notice of Sale provided for herein
are hereby adopted and approved as the terms, provisions and conditions under which the Bonds
shall be sold, issued and delivered at public sale. Said Notice of Sale, or an advertisement in
substantially the form attached hereto as Exhibit A, shall be published at least once, at least ten
days preceding said date of sale, in one or more daily or weekly newspapers having a general
circulation in Washington County and may also be published in one or more journals having a
circulation primarily among banks and investment bankers. The Chief Financial Officer, on behalf
of the County, is hereby authorized to make any changes to such advertisement before publication
to reflect matters determined in accordance with Sections 1, 3, or 11 of this Resolution before such
publication, if applicable. In addition, the Chief Financial Officer is hereby authorized to cause to
be prepared and distributed or made available to prospective bidders printed or printable copies of
the Notice of Sale, as well as the Preliminary Official Statement hereinafter authorized. The Chief
Financial Officer or the Chief Financial Officer’s designee is hereby authorized and directed to
handle all inquiries in connection with the sale authorized hereby and the Official Statement
22
hereafter referred to and is further authorized to reschedule any postponed sale with or without the
republication of the Notice of Sale or advertisement.
Section l2. After accessing the electronic bids for the Bonds, and in accordance with the
terms and conditions of the sale of the Bonds as set forth in the official Notice of Sale, the Chief
Financial Officer, on behalf of the County, with the advice of the financial advisor to the County
and bond counsel to the County, is hereby authorized and delegated the authority to deliver one or
more orders determining the final original aggregate principal amount of the Bonds (including
making any authorized adjustments to the final original aggregate principal amount of each
maturity and the amortization schedule therefor following receipt of bids in accordance with the
provisions of this Resolution and the official Notice of Sale), and/or fixing the interest rate or rates
payable on the Bonds (within the limitations set forth in or provided for in this Resolution), unless
the Chief Financial Officer determines to reject all bids for the Bonds (any such rejection also to
be made by order of the Chief Financial Officer). The order or orders of the Chief Financial Officer
shall be delivered following receipt of the good faith deposit for the Bonds provided for in the
official Notice of Sale. The execution and delivery by the Chief Financial Officer of any such
order or orders shall constitute conclusive evidence of the award or rejection of bids for the Bonds.
Any such order shall be retained in the records of the County. In order to accommodate market
practice, the Chief Financial Officer may indicate any preliminary or final award, or any rejection
of all bids, with respect to the Bonds on or through the electronic bidding platform on which bids
were received and through any other communication mechanism recommended by the financial
advisor to the County. Subsequently, unless all bids for the Bonds are so rejected by the Chief
Financial Officer, the Bonds shall thereupon be suitably printed or engraved and delivered to the
successful bidder therefor in accordance with the conditions of delivery set forth in the official
Notice of Sale.
Section 13. Expenses relating to the issuance and sale of the Bonds, including, without
limitation, the cost of printing the Bonds and advertising their sale and the fees and expenses of
legal counsel and the financial advisor to the County, shall be paid from other funds available to
the County; provided that, the underwriter’s discount of the successful bidder for the Bonds shall
be paid from net original issue premium resulting from the sale of the Bonds. In the event the date
of the Bonds is adjusted in accordance with Section 11 hereof to be a date other than the date of
delivery of the Bonds, any accrued interest received on the sale of the Bonds shall be applied to
the first interest payment on the Bonds. Any net original issue premium received from the sale of
the Bonds shall be applied after payment of the underwriter’s discount of the successful bidder for
the Bonds to pay costs of the public facilities and projects provided for in Section 2, to the extent
available for such purpose, subject to any applicable limits of the Internal Revenue Code of 1986,
as amended (the “Code”) or other applicable law. After providing for payment of underwriter’s
discount from net original issue premium, and making any such provision for accrued interest, if
applicable, the balance of the proceeds of the sale of the Bonds shall be deposited in a separate
account or accounts to be used as described in Section 2 hereof for the purpose of financing the
public facilities and projects as described in Section 2 hereof. Any proceeds of the Bonds not
required for the purposes stated in Section 2 hereof may be applied in accordance with the
provisions of the applicable Acts, or the extent not provided for therein, as determined by the Chief
Financial Officer, subject to applicable County law.
23
Pending expenditure as contemplated hereby, the Chief Financial Officer may invest all or
part of such balance of the proceeds of the Bonds held by the County in such manner as may be
permitted by law; provided, however, that no such investment shall be made which would cause
the Bonds to be “arbitrage bonds” within the meaning of the Code and the treasury regulations
with respect thereto.
Section 14. (a) On the date of issuance of the Bonds, the President or the Vice
President of the Board, together with the Chief Financial Officer, shall be responsible for the
execution and delivery to counsel rendering an opinion on the validity of the Bonds of a certificate
of the County which complies with the requirements of Section 103 and Sections 141 through 150,
inclusive, of the Code and the applicable regulations thereunder. Such officials are hereby
authorized, on behalf of the County, to make in such certificate any elections, determinations or
designations authorized or required by the Code and the applicable regulations thereunder.
(b) The County shall set forth in said certificate its reasonable expectations as to
relevant facts, estimates and circumstances relating to the use of the proceeds of the Bonds, or of
any moneys, securities or other obligations which may be deemed to be proceeds of the Bonds
pursuant to Section 148 of the Code or the said regulations (collectively, the “Bond Proceeds”).
The County covenants with each of the holders of any of the Bonds that the facts, estimates and
circumstances set forth in the said certificate will be based on the County’s reasonable expectations
on the date of issuance of the Bonds and will be, to the best of the knowledge of the persons
executing such certificate, true, correct and complete as of that date. The County may also set
forth in such certificate any reduction in the par amount of the Bonds and any net original issue
premium to be applied to the categories of the public facilities and projects set forth in Section 2
above due to adjustments in the final par amount of the Bonds contemplated by this Resolution.
(c) The County covenants with each of the holders of any of the Bonds that it will not
use, or permit the use of any of, the Bond Proceeds or any other funds of the County, directly or
indirectly, to acquire any securities or obligations, and will not take or permit to be taken or fail to
take any other action or actions which would cause any of the Bonds to be an “arbitrage bond”
within the meaning of said Section 148 and said regulations or that would otherwise cause the
interest on the Bonds to be includable in gross income of the holders of the Bonds for federal
income tax purposes.
(d) The County further covenants that it will comply with said Section 148 and said
regulations and such other requirements of the Code which are applicable to the Bonds on the date
of issuance of the Bonds and which may subsequently lawfully be made applicable to the Bonds.
(e) The County will hold and shall invest Bond Proceeds within its control (if such
proceeds are invested) in accordance with the expectations of the County set forth in said
certificate.
(f) The County shall make timely payment of any rebate amount or payment in lieu
thereof (or installment thereof) required to be paid to the United States of America in order to
preserve the exclusion from gross income for purposes of federal income taxation of interest on
24
the Bonds and shall include with any such payment such other documents, certificates or
statements as shall be required to be included therewith under then applicable law and regulations.
(g) The President or the Vice President of the Board, together with the Chief Financial
Officer, may execute a certificate or certificates supplementing or amending said certificate, and
actions taken by the County subsequent to the execution of such certificate shall be in accordance
with said certificate as amended or supplemented; provided, however, that the County shall
execute any such certificate only upon receipt by it of an opinion of bond counsel to the County
addressed to the County to the effect that actions taken by the County in accordance with the
amending or supplementing certificate will not adversely affect the exclusion from gross income
for federal income taxation purposes of interest on the Bonds.
(h) The County shall retain such records as necessary to document the investment and
expenditure of Bond Proceeds, the uses of Bond Proceeds and of the facilities financed with such
proceeds, together with such other records as may be required by the tax certificate or the Internal
Revenue Service in order to establish compliance with requirements of the Code and the
regulations thereunder as conditions to the exclusion of interest on the Bonds from federal gross
income taxation.
Section 15. For the purposes of paying the interest on and principal of the Bonds hereby
authorized as such interest and principal comes due, the County shall include in the levy against
all legally assessable property in Washington County, in each and every fiscal year of the County
that any of said Bonds are outstanding, ad valorem taxes sufficient to provide such sums as the
County may deem sufficient and necessary in conjunction with any other funds that will be
available for the purpose, to provide for the payment of the interest on the Bonds coming due in
each such year and to pay the principal of the Bonds maturing or otherwise coming due in each
such fiscal year. In the event the proceeds from taxes so levied in any such fiscal year shall prove
inadequate for such purposes, additional taxes shall be levied in the succeeding fiscal year to make
up such deficiency. The full faith and credit and unlimited taxing power of the County are hereby
irrevocably pledged to the punctual payment of the principal of and interest on the Bonds hereby
authorized as and when such principal and interest comes due and to the levy and collection of the
taxes hereinabove prescribed as and when such taxes may become necessary in order to provide
sufficient funds to meet the debt service requirements of said Bonds. The County hereby solemnly
covenants to take all lawful action as may be appropriate from time to time during the period that
any of said Bonds remain outstanding and unpaid to provide the funds necessary to make said
principal and interest payments. The County further covenants and agrees to levy and collect the
taxes hereinabove prescribed.
Subject to any applicable Code limitations, the County may apply to the payment of the
principal of and interest on any of the Bonds any funds received by it and available for such
purpose from the State of Maryland, the United States of America, any agency or instrumentality
thereof, or from any other source, including, without limitation, other sources provided for in the
applicable Acts, and, to the extent any such funds are received or receivable in any fiscal year, the
taxes that required to be levied hereunder may be reduced accordingly.
25
Section 16. If any Bond shall become mutilated or be destroyed, lost or stolen, the County
in its discretion may execute, and upon its request the Bond Registrar and Paying Agent shall
authenticate and deliver, a new Bond in exchange for the mutilated Bond or in lieu of and
substitution for the Bond so destroyed, lost or stolen. In every case of exchange or substitution,
the applicant shall furnish to the County and to the Bond Registrar and Paying Agent such security
or indemnity as may be required by them to save each of them harmless from all risks, however
remote, and the applicant shall also furnish to the County and to the Bond Registrar and Paying
Agent evidence to their satisfaction of the mutilation, destruction, loss or theft of the applicant’s
Bond. Upon the issuance of any Bond upon such exchange or substitution, the County may require
the payment of a sum sufficient to cover any tax, fee or other governmental charge that may be
imposed in relation thereto, shipping charges and insurance, and any other expenses, including
counsel fees of the County or the Bond Registrar and Paying Agent. If any Bond which has
matured or is about to mature shall become mutilated or be destroyed, lost or stolen, instead of
issuing a Bond in exchange or substitution therefor, the County may pay or authorize the payment
of such Bond (without surrender thereof except in the case of a mutilated Bond) if the applicant
for such payment shall furnish to the County and to the Bond Registrar and Paying Agent such
security or indemnity as they may require to save them harmless, and evidence to the satisfaction
of the County and the Bond Registrar and Paying Agent of the mutilation, destruction, loss or theft
of such Bond.
Section 17. Each Bond paid at maturity or upon prior redemption shall be canceled or
destroyed by the Bond Registrar and Paying Agent and a certificate of destruction describing the
Bond so canceled or destroyed and evidencing such cancellation or destruction shall be furnished
by the Bond Registrar and Paying Agent to the County upon request.
Section 18. It is hereby determined that the bonded indebtedness previously issued by
the County pursuant to the authority of the 2018 Act is a $514,278 principal portion of the County’s
Public Improvement Bonds of 2019, a $9,060,000 principal portion of the County’s Public
Improvement Bonds of 2020, and a $10,785,626 principal portion of the County’s Public
Improvement Bonds of 2021.
Section 19. (a) The County hereby approves the Preliminary Official Statement relating
to the Bonds (the “Preliminary Official Statement”) substantially in the form presented to the
Board with this Resolution. The President of the Board and the Chief Financial Officer, with the
advice of bond counsel to the County or the financial advisor to the County to the extent applicable,
are hereby authorized and empowered to make edits to the form of the Preliminary Official
Statement presented to the Board prior to the release of the Preliminary Official Statement,
including, without limitation, to (i) disclose actual or anticipated impacts on the County stemming
from the COVID-19 pandemic, (ii) reflect details regarding the funds expected to be received by
the County under the American Rescue Plan Act of 2021, (iii) reflect the provisions of or to
conform to the provisions of this Resolution, (iv) reflect changes dictated by the terms of the
official Notice of Sale, (v) to correct inaccuracies or to provide clarifications, (vi) include therein
other information that is more recent than the information contained in the form of the Preliminary
Official Statement presented to the Board, and (vii) make formatting edits. On behalf of the
County, the President of the Board and the Chief Financial Officer shall deem the final form of the
Preliminary Official Statement to be final for purposes of Rule 15c2-12 of the Securities and
26
Exchange Commission, subject to revision, completion and amendment in the final Official
Statement in accordance with such Rule 15c2-12. The County authorizes the distribution of said
Preliminary Official Statement in connection with its solicitation of bids for the sale of the Bonds.
(b) The County hereby approves the Official Statement for the Bonds in the form of
the final Preliminary Official Statement with such changes therein as may be required or deemed
appropriate by the President of the Board or the Chief Financial Officer (and with the advice of
bond counsel to the County or the financial advisor to the County, to the extent applicable),
including, without limitation, to reflect matters determined in accordance with this Resolution and
to incorporate any information supplied by the successful bidder for the Bonds. The execution of
the Official Statement by the President of the Board shall be conclusive evidence of the approval
of the County of any and all such changes or modifications in said Official Statement in connection
with the issuance, sale and delivery of the Bonds.
(c) The Preliminary Official Statement and the Official Statement shall each be
disseminated in electronic and/or printed form as determined by the Chief Financial Officer, on
behalf of the County, with the advice of the financial advisor to the County.
(d) The Preliminary Official Statement and/or the Official Statement may be amended
or supplemented in such form as determined by the President of the Board or the Chief Financial
Officer (and with the advice of bond counsel to the County or the financial advisor to the County
to the extent applicable), and any such amendment or supplement may be disseminated in
electronic and/or printed form as determined by the Chief Financial Officer, on behalf of the
County, with the advice of the financial advisor to the County.
(e) Any signature of the President of the Board and/or the Chief Financial Officer with
respect to the Preliminary Official Statement or the Official Statement may be made in facsimile
or indicated by other customary signature convention rather than by manual signature.
Section 20. In order to assist any Participating Underwriter (as hereafter defined) for the
Bonds in complying with Securities and Exchange Commission Rule 15c2-12(b)(5), the County
hereby covenants and agrees that it will comply with and carry out all of the provisions of the
Continuing Disclosure Agreement (as hereafter defined). Notwithstanding any other provision of
this Resolution, failure of the County to comply with the Continuing Disclosure Agreement shall
not be considered an event of default with respect to the Bonds; however, subject to the Continuing
Disclosure Agreement, any bondholder may take such actions as may be necessary and
appropriate, including seeking mandate or specific performance by court order, to cause the
County to comply with its obligations under this Section.
“Continuing Disclosure Agreement” shall mean that certain Continuing Disclosure
Agreement with respect to the Bonds executed by the County and dated the date of issuance and
delivery of the Bonds, as originally executed and as it may be amended from time to time in
accordance with the terms thereof. The Continuing Disclosure Agreement shall be in substantially
the form set forth as Appendix D to the Preliminary Official Statement as evidenced by its
execution by the President or the Vice President of the Board.
27
“Participating Underwriter” shall have the meaning ascribed thereto in Securities and
Exchange Commission Rule 15c2-12.
Section 21. (a) The President and Vice President of the Board, the Chief Financial
Officer, the County Clerk and such other officers, officials and employees of the County as the
President or the Vice President shall designate, are authorized hereby to do any and all things,
approve and execute all instruments, documents and certificates, and otherwise take all action
necessary, proper, or expedient in connection with the issuance, sale and delivery of the Bonds.
The President and the Vice President of the Board, the Chief Financial Officer, the County Clerk
and all other appropriate officers, officials and employees of the County are authorized and
directed hereby to do all acts and things required of them by the provisions hereof and of the Bonds
for the full, punctual, and complete performance of all of the terms, covenants, provisions and
agreements of this Resolution and the Bonds.
(b) References in this Resolution to any official by title shall be deemed to refer (i) to any
official authorized under the code of public local laws of the County, as replaced, supplemented or
amended (the “County Code”), or other applicable law or authority to act in such titled official’s stead
during the absence or disability of such titled official, (ii) to any person who has been elected,
appointed or designated to fill such position in an acting or interim capacity under the County Code
or other applicable law or authority, (iii) to any person who serves in a “deputy,” “associate” or
“assistant” capacity as such an official, provided that the applicable responsibilities, rights or duties
referred to herein have been delegated to such deputy, associate or assistant in accordance with the
County Code or other applicable law or authority, and/or (iv) to the extent an identified official
commonly uses another title not provided for in the County Code, the official, however known, who
is charged under the County Code or other applicable law or authority with the applicable
responsibilities, rights or duties referred to herein. For example, as of the date of introduction of this
Resolution, the office of the Chief Financial Officer is vacant but there is an Interim Chief Financial
Officer in office who has been delegated the authority to exercise the powers and duties of the Chief
Financial Officer.
(c) Notwithstanding any references in this Resolution to manual or facsimile signatures
of County officials or the Bond Registrar and Paying Agent, to the extent that applicable law, orders,
regulations or other authority allow for signatures to be made by facsimile, electronic or other means,
whether due to the impacts of the COVID-19 pandemic or for other applicable reasons, the provisions
of such applicable law, orders, regulations or other authority allowing signatures to be made in a
manner other than manually shall be deemed to supersede the provisions of this Resolution.
Section 22. The provisions of this Resolution shall be liberally construed in order to
effectuate the transactions contemplated by this Resolution.
[CONTINUED ON FOLLOWING PAGE]
#226274;50052.048
28
Section 23. This Resolution shall take effect from the date of its adoption.
Adopted this _______________ day of __________________, 2022.
(SEAL)
ATTEST: COUNTY COMMISSIONERS OF
WASHINGTON COUNTY
__________________________ By:_____________________________
Krista L. Hart, County Clerk Jeffrey A. Cline, President
Board of County Commissioners
of Washington County
__________________________
Kirk C. Downey
County Attorney
Mail to:
Office of the County Attorney
100 W. Washington Street, Suite 1101
A-1
EXHIBIT A
Form of Advertisement
SUMMARY NOTICE OF BOND SALE
$17,045,000* WASHINGTON COUNTY, MARYLAND (County Commissioners of Washington County)
Public Improvement Bonds of 2022
NOTICE IS HEREBY GIVEN that County Commissioners of Washington County (the
“County”) will receive electronic bids only via BiDCOMP/Parity®/www.i-dealprospectus.com
for the purchase of the above-referenced general obligation bonds (the “Bonds”) on
Tuesday, May 24, 2022
until 11:00 a.m. prevailing Eastern time. The Bonds will be dated the date of their delivery, will
bear interest payable semi-annually on the first days of January and July, commencing on January
1, 2023, until maturity or, to the extent applicable, prior redemption in whole, and will be issuable
in denominations of $5,000 each or multiples thereof. Principal of the Bonds will be payable on
July 1 in each year determined in connection with the sale of the Bonds, unless redeemed in whole
prior to final maturity. The Bonds will be issued in book-entry only form.
The original aggregate principal amount of the Bonds, and the original aggregate principal
amount of each maturity of the Bonds, is subject to adjustment both pre- and post-sale as set forth
in the Preliminary Official Statement for the Bonds and the official Notice of Sale. In addition,
the principal and interest payment dates and optional redemption dates are subject to adjustment
pre-sale as set forth in the Preliminary Official Statement and the official Notice of Sale. The final
original aggregate principal amount of the Bonds will not exceed $17,045,000.
Any bid for the Bonds must conform to the terms and conditions set forth in the official
Notice of Sale. This announcement does not constitute the solicitation of bids to purchase the
Bonds. The sale of the Bonds shall be made exclusively pursuant to the terms of the official Notice
of Sale. Copies of the official Notice of Sale and the Preliminary Official Statement will be
furnished upon request made to the [Interim] Chief Financial Officer, Washington County, County
Administration Building, 100 West Washington Street, Room 3100, Hagerstown, Maryland
21740, (240) 313-2300, or from the financial advisor to the County, Davenport & Company LLC,
The Oxford Building, 8600 LaSalle Road, Suite 618, Towson, Maryland 21286, (410) 296-9426.
Jeffrey A. Cline, President
Board of County Commissioners of Washington County, Maryland
* Preliminary, subject to adjustment at or prior to time of sale, as applicable.
Dated: _______________, 2022 [TO BE PUBLISHED AT LEAST 10 DAYS PRIOR
TO DATE OF SALE]
Tax-Supported Bond Self-Supported Bond
Halfway Boulevard Bridges W0912 238,000 0
Roxbury Road Bridge W5372 500,000 0
Frog Eye Road Culvert 11/06 150,000 0
Pavement Maintenance and Rehab Program 3,116,000 0
Halfway Boulevard Extended 400,000 0
Wright Road 173,000 0
Eastern Blvd at Antietam Drive Improvements 1,000,000 0
Police & EMS Training Facility 700,000 0
General Building Improvements 0 30,000
Pump Station Upgrades - Various Stations 0 275,000
Capacity Management Project 0 6,740,000
Smithsburg WWTP ENR Upgrade 0 0
Capital Maintenance - BOE 2,615,000 0
Center for Business and Entrepreneurial Studies 663,526 0
LRC Exterior Metal Panel System and Roof Replacement 444,474 0
PRELIMINARY OFFICIAL STATEMENT DATED MAY 12, 2022
New Issue-Book-Entry Only
In the opinion of Bond Counsel, assuming continuous compliance with certain covenants described herein, under existing
law, the interest on the Bonds (a) will be excludable from gross income for federal income tax purposes, (b) is not a specific
preference item for purposes of the federal alternative minimum tax, and (c) may be subject to the branch profits tax
imposed on foreign corporations engaged in a trade or business in the United States of America. It is also the opinion of
Bond Counsel that, under existing law, the Bonds, their transfer, the interest payable thereon, and any income derived therefrom (including any profit made in the
sale thereof) shall be at all times exempt from State of Maryland (the “State”), county, municipal, or other taxation of every kind and nature whatsoever within the State,
but no opinion is expressed as to Maryland estate or inheritance taxes or any other Maryland taxes not levied directly on the Bonds, their transfer, the interest thereon or
the income therefrom. See the information contained herein under the caption “THE BONDS—Tax Matters”.
$16,485,000*
WASHINGTON COUNTY, MARYLAND
(COUNTY COMMISSIONERS OF WASHINGTON COUNTY)
PUBLIC IMPROVEMENT BONDS OF 2022
Dated: Date of delivery
Due: July 1, as shown on the inside cover page
Interest Payable: January 1 and July 1
First Interest Payment Due: January 1, 2023
Denomination: Integral multiples of $5,000
Form: Registered, book-entry only through the facilities of The Depository Trust Company (“DTC”)
Optional Redemption: The Bonds maturing on or after July 1, 2033 are redeemable prior to maturity at the option of the County as set forth in “THE
BONDS—Redemption—Optional Redemption” herein.
Security: The Bonds are general obligations of County Commissioners of Washington County (the “County”) for the payment of which its full
faith and credit and unlimited taxing power are pledged (see “THE BONDS—Sources of Payment” herein).
2023 520,000$ 2033 850,000$
2024 545,000 2034 885,000
2025 575,000 2035 920,000
2026 605,000 2036 945,000
2027 630,000 2037 975,000
2028 665,000 2038 1,005,000
2029 700,000 2039 1,040,000
2030 735,000 2040 1,065,000
2031 775,000 2041 1,100,000
2032 815,000 2042 1,135,000
*Preliminary; subject to change
**The interest rates and yields shown above are those resulting from the successful bid for the Bonds on ___________________ and were furnished by the
successful bidder therefor. Other information concerning the terms of the reoffering of the Bonds, if any, should be obtained from the successful bidder
for the Bonds and not from the County. (See “MISCELLANEOUS—Sale at Competitive Bidding” herein.)
Conditions Affecting Issuance: The Bonds are offered when, as and if issued, subject to, among other conditions, the delivery of the Bonds and an approving legal opinion of
Funk & Bolton, P.A., Bond Counsel, with respect thereto and other conditions specified in the official Notice of Sale. Delivery will occur through the facilities of DTC on or about
June 7, 2022.
This cover page contains certain information for quick reference only. It is not a summary of this issue. Prospective bidders and investors must read the entire Official
Statement to obtain information essential to the making of an informed investment decision.
Dated:
No dealer, broker, salesman or other person has been authorized by the County or the successful bidder for the Bonds to give any information or to make any
representations with respect to the Bonds or the County other than those contained in this Official Statement, and, if given or made, such other information or representations
must not be relied upon as having been authorized by either of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy,
Fitch
Moody’s
S & P
nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set
forth herein has been obtained from the County and other sources which are deemed to be reliable, but it is not to be construed as a representation by the County as to
information from sources other than the County.
This Official Statement is not to be construed as a contract or agreement between the County and the purchasers or holders of any of the Bonds.
All quotations from and summaries and explanation of provisions of laws and documents herein do not purport to be complete and reference is made to such
laws and documents for full and complete statements of their provisions. Any statements made in this Official Statement involving estimates or matters of opinion, whether
or not expressly so stated, are intended merely as estimates or opinions and not as representations of fact. The information and expressions of opinion herein are subject to
change without notice and neither the delivery of this Official Statement nor any sale of the Bonds shall, under any circumstances, create any implication that there has been
no change in the affairs of the County since the respective dates as of which information is given herein or the date hereof.
In connection with this offering and subject to any applicable limitations, the successful bidder of the Bonds may over-allot or effect transactions that stabilize
or maintain the market price of the Bonds at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at
any time.
CUSIP is a registered trademark of the American Bankers Association. CUSIP data herein is provided by CUSIP Global Services, which is managed by S&P
Global Market Intelligence (a part of S&P Global Inc.), and the County does not take any responsibility for the accuracy thereof. The CUSIP number for any specific
maturity is subject to change after issuance of the Bonds in certain circumstances. The County has not agreed to, and there is no obligation to, update this Official Statement
to reflect any change or correction in the assigned CUSIP numbers set forth on the cover page of this Official Statement. The use of CUSIP numbers in this Official Statement
is not intended to create a database and does not serve in any way as a substitute for CUSIP Global Services’s information.
WASHINGTON COUNTY, MARYLAND
ADMINISTRATION BUILDING
100 WEST WASHINGTON STREET
HAGERSTOWN, MARYLAND 21740
COUNTY COMMISSIONERS
Jeffrey A. Cline, President
Terry L. Baker, Vice President
Wayne K. Keefer, Commissioner
Randall E. Wagner, Commissioner
Charles A. Burkett, Jr., Commissioner
ADMINISTRATION
John M. Martirano, County Administrator
Krista L. Hart, County Clerk
Kirk C. Downey, Esquire, County Attorney
Kelcee G. Mace, Interim Chief Financial Officer
COUNTY TREASURER
Todd L. Hershey
FINANCIAL ADVISOR
Davenport & Company LLC
Towson, Maryland
BOND COUNSEL
Funk & Bolton, P.A.
Baltimore, Maryland
INDEPENDENT AUDITOR
SB & Company, LLC
Hunt Valley, Maryland
BOND REGISTRAR AND PAYING AGENT
Manufacturers and Traders Trust Company
Baltimore, Maryland
and Buffalo, New York
TABLE OF CONTENTS
Introduction…………………………………………………… 1 Accounting System……………………………………... 29
Description of Bonds…………………………………………... 1 Fund Structure………………………………………….. 29
DTC and Book-Entry Only System…………………………… 2 Basis of Accounting, Measurement Focus, and Financial
Book-Entry Only System—Miscellaneous……………………. 3 Statement Presentation….……………………….….... 29
Authorization………………………………………………….. 4 Accounting Enterprise System….………………….….... 29
Application of Proceeds…………………….…….…………… 4 Capital Budget Preparation Software…………………... 30
Redemption…………….………………….…………….……. 4 Budget Process and Schedule…………………….……. 30
Sources of Payment….………………………………………… 5 General Fund Revenues and Expenditures…..……..….. 32
Bondholders’ Remedies.………………………………………. 5 Anticipated Results for Fiscal Year 2022……………….. 34
Tax Matters……………………………………………..….…. 6 Sources of Tax Revenue….……………………………. 34
General Fund Balance Sheet…………………………... 38
Key Financial Statistics………………………………... 39
II. GOVERNMENT AND ADMINISTRATION V. DEBT AND CAPITAL REQUIREMENTS
Location………………………………………………………. 8 Debt Management Policy………………………….…… 40
Form of Government…………………………..……………... 8 General Obligation and Revenue Bonds.……………..… 40
Legislative and Administrative Officials……………….….… 9 Water and Sewer Bonds…………………………….….. 41
Washington County Government Organizational Chart.….…. 11 Capital Lease Obligations and Other Contracts…….….. 43
County Employment…………………………………………. 11 Special Obligation Bonds………………………………. 43
Pension and Retirement System……………………………… 11 Bonded Indebtedness of Incorporated Municipalities….. 44
Other Post-Employment Benefits…………………………….. 12 Direct and Underlying Debt……………………….…… 44
Insurance……………………………………………………... 13 Debt Service Requirements on County Debt.……….….. 45
Certain Services and Responsibilities………………………… 13 Anticipated Future Financing…………………………... 48
Capital Requirements…………………………………... 48
III. ECONOMIC AND DEMOGRAPHIC INFORMATION VI. MISCELLANEOUS
Department of Business Development…………….………….. 20 Litigation………………………………………….……. 49
Business Development…..………….………………………… 21 Potential Impact of COVID-19 Pandemic on the County 49
Foreign Trade Zone……………….…………………………... 24 Ratings…………………………………………….…..... 50
Utilities, Transportation, and Communication….………..…… 24 Continuing Disclosure Undertaking………………..…... 50
Population….……………………..…..………….….………… 25 Sale at Competitive Bidding……………………….…... 50
Income …..……………..…………..………………….………. 25 Legal Matters………………………………….………... 51
Area Labor Supply…..…………………………………..…….. 26 Independent Auditors……………………………….….. 51
Employment…………..……………………………………..… 26 Financial Advisor………………………………………. 51
Unemployment Rate…..……………………………..………… 27
Construction Activity…..……………………………………... 27
Housing Starts……………………………………………….... 27
Agriculture……………………………………………………. 28 Appendix A -
Statements………………………….……….………….
Appendix B - Proposed Form of Opinion of Bond
Counsel……..…………………..…………………..….
Appendix C - Notice of Sale ………..………..…….… C
Appendix D - Proposed Form of Continuing Disclosure
Agreement…………………..………………………….
THE BONDS
Washington County, Maryland 1
I. The Bonds
Introduction
The purpose of this Official Statement, including the cover page and appendices, is to provide information for
prospective purchasers and others regarding County Commissioners of Washington County (the “County”) and its $16,485,000*
Public Improvement Bonds of 2022 (the “Bonds” or, individually, each a “Bond”)
All estimates and assumptions herein have been based upon information believed to be reliable and correct; however,
statements made involving estimates and assumptions, whether or not expressly so stated, are intended merely as such and not as
representations of facts.
When used in this Official Statement, the words “estimate,” “forecast,” “intend,” “expect,” “anticipate,” and similar
expressions identify forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual
results to differ materially from those contemplated in such forward-looking statements. Any forecast is subject to such
uncertainties. Some assumptions used to develop the forecasts may not be realized and unanticipated events and circumstances
may occur. Therefore, there may be differences between forecasts and actual results, and those differences may be material.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this
Official Statement or as of a particular specified date. The County is not obligated to issue any updates or revisions to such
forward-looking statements if or when results are known or the events, conditions or circumstances on which such forward-
looking statements are based occur.
Figures herein relating to tax collections, assessed value of property and the financial position of the County have been
taken from official records of the County.
Except as otherwise expressly provided herein, the County has provided the material and information contained in this
Official Statement. The County has authorized the execution and distribution of this Official Statement.
Any questions concerning this Official Statement or the Bonds should be addressed to Kelcee G. Mace, Interim Chief
Financial Officer, Washington County Administration Building, 100 West Washington Street, Room 3100, Hagerstown, Maryland
21740; telephone: (240) 313-2300; email: kmace@washco-md.net.
Description of Bonds
The Bonds will be dated the date of their delivery. The Bonds will be issued in the principal amounts and will mature
on the dates in the years and in the amounts set forth on the cover page hereof. The Bonds will be legally binding general
obligations of the County to the payment of which the full faith and credit and unlimited taxing power of the County are pledged.
(See “THE BONDS—Sources of Payment” herein.)
Interest on the Bonds, calculated on the basis of a 30-day month/360-day year factor, will be payable at the interest rates
specified on the cover page of this Official Statement. Interest on the Bonds will be first paid on January 1, 2023, and
semiannually thereafter on the first day of July and January of each year until the date of maturity unless a Bond is redeemed prior
to that date. Interest payments will be made to the persons who are registered owners of record as of the 15th day of the month
preceding each such interest payment date. Each Bond shall bear interest from the most recent date to which interest has been
paid or, if no interest has been paid, from its date of delivery.
*Preliminary; subject to change
THE BONDS
2 Washington County, Maryland
The Bonds will be issued in fully-registered form without coupons, in denominations of $5,000 and integral multiples
thereof. The Bonds initially will be issued in book-entry form without any physical distribution of certificates made to the public.
The Depository Trust Company, (“DTC”), will act as securities depository for the Bonds and the Bonds will be registered in the
name of DTC’s partnership nominee, Cede & Co. (See “THE BONDS— DTC and Book-Entry Only System” herein).
So long as the Bonds are maintained in book-entry form, payments of principal of and interest on the Bonds will be made
as described below under “DTC and Book-Entry Only System.” At any other time the principal amount of the Bonds will be
payable at the designated corporate trust office of Manufacturers and Traders Trust Company or any successor bond registrar and
paying agent (the “Bond Registrar and Paying Agent”).
Except during any period that the Bonds are maintained under a book-entry only system, interest on the Bonds will be
payable by checks of the Bond Registrar and Paying Agent mailed to the registered owners thereof. The principal of and interest
on the Bonds will be paid in lawful money of the United States of America in the manner and at the places hereinabove described.
So long as the Bonds are maintained in book-entry form, transfers of ownership interests will be made as described below
under “DTC and Book-Entry Only System.” At any other time, any Bond may be exchanged for a Bond or Bonds in authorized
denominations of $5,000 or integral multiples thereof in aggregate principal amount equal to the principal amount of the Bond
transferred or exchanged and maturing on the same date and bearing interest at the same rate. The transfer of any Bond may be
registered upon presentation and surrender of such Bond at the office of the Bond Registrar and Paying Agent, together with a written
instrument of transfer duly executed by the registered owner or his attorney or legal representative. The Bond Registrar and Paying
Agent may require the person requesting any such exchange or transfer to reimburse it for any tax, fee or other governmental charge,
shipping charges and insurance payable in connection therewith.
DTC and Book-Entry Only System
Initially, DTC will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities
registered in the name of Cede & Co. (as DTC’s partnership nominee) or such other name as may be requested by an authorized
representative of DTC. One fully-registered Bond certificate will be issued for each maturity of the Bonds and will be deposited
with DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York
Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency”
registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended. DTC holds and provides
asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money
market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also
facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities
through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need
for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers,
banks, trust companies, clearing corporations and certain other organizations. DTC is a wholly-owned subsidiary of The Depository
Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and
Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated
subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers,
banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant,
either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to
its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at
www.dtcc.com.
Purchases of the Bonds under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in
turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from
DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the
transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial
Owners entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the
books of the Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive physical
certificates representing their ownership interests in the Bonds, except in the event that use of the book-entry only system is
discontinued for the Bonds.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of
DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The
THE BONDS
Washington County, Maryland 3
deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change
in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the
identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners.
The Direct and Indirect Participants remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among
them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Redemption notices shall be sent to DTC. If fewer than all of the Bonds are being redeemed, DTC’s practice is to
determine by lot the amount of the interest of each Direct Participant to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless
authorized by a Direct Participant in accordance with DTC’s Procedures. Under its usual procedures, DTC mails an Omnibus
Proxy to the County as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting
rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the
Omnibus Proxy).
Redemption proceeds, payments of the principal of, redemption premium, if any, and interest on the Bonds will be made
to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit
Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the County or the Bond
Registrar and Paying Agent on payable dates in accordance with their respective holdings shown on DTC’s records. Payments by
Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities
held for the accounts of customers in bearer form or registered in “street name”, and will be the responsibility of such Participants,
and not of DTC, the Bond Registrar and Paying Agent or the County, subject to any statutory and regulatory requirements as
may be in effect from time to time. Payment of principal, redemption premium, if any, and interest on the Bonds to Cede &
Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the County or
the Bond Registrar and Paying Agent; disbursement of such payments to Direct Participants will be the responsibility of DTC;
and disbursement of such payments to the Beneficial Owners will be the responsibility of the Direct and Indirect Participants.
DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving
reasonable notice to the County or the Bond Registrar and Paying Agent. Under such circumstances, in the event that a successor
depository is not obtained, Bond certificates are required to be printed and delivered.
The County may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor
securities depository). In that event, Bond certificates will be printed and delivered.
The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources the
County believes to be reliable, but the County takes no responsibility for the accuracy thereof.
Book-Entry Only System - Miscellaneous
THE COUNTY AND THE BOND REGISTRAR AND PAYING AGENT WILL NOT HAVE ANY
RESPONSIBILITY OR OBLIGATION TO ANY DIRECT PARTICIPANT, INDIRECT PARTICIPANT OR
BENEFICIAL OWNER OF THE BONDS WITH RESPECT TO: (1) THE BONDS; (2) THE ACCURACY OF ANY
RECORDS MAINTAINED BY DTC OR ANY DIRECT PARTICIPANT OR INDIRECT PARTICIPANT; (3) THE
PAYMENT OF ANY AMOUNT DUE TO ANY DIRECT PARTICIPANT, INDIRECT PARTICIPANT OR
BENEFICIAL OWNER IN RESPECT OF THE PRINCIPAL OF OR INTEREST ON THE BONDS; (4) THE
DELIVERY BY DTC OR ANY DIRECT PARTICIPANT OR INDIRECT PARTICIPANT OF ANY NOTICE TO ANY
BENEFICIAL OWNER WHICH IS REQUIRED OR PERMITTED UNDER THE TERMS OF THE BONDS TO BE
GIVEN TO BOND OWNERS; (5) THE SELECTION OF BENEFICIAL OWNERS TO RECEIVE PAYMENT IN THE
EVENT OF ANY PARTIAL REDEMPTION OF ANY OF THE BONDS; OR (6) ANY CONSENT GIVEN OR OTHER
ACTION TAKEN BY DTC AS BONDHOLDER.
In the event the County determines to discontinue a book-entry only system of registration of the Bonds, payments of
interest, principal and redemption price and transfer and exchange of the Bonds will be made as described above under “THE
BONDS—Description of Bonds”.
THE BONDS
4 Washington County, Maryland
Authorization
The Bonds are issued pursuant to the authority of Chapter 99 of the Laws of Maryland of 2018 (“Chapter 99”) and Title
6 of the Code of Public Local Laws of Washington County, Maryland (2019 Edition), (the “Water and Sewer Act”), each as
amended, as applicable, and in accordance with Resolution No. RS-2022-XX adopted by the Board of County Commissioners
of Washington County (the “Board”) on May 3, 2022 (the “Resolution”).
Chapter 99 and the Water and Sewer Act are collectively referred to in this Official Statement as (the “Act”) . Copies
of the Act and the Resolution are available at the office of the Interim Chief Financial Officer of the County (the “Interim
CFO”).
Application of Proceeds*
Sale proceeds of the Bonds (including any net original issue premium) will be applied to costs of the following projects in
the amounts indicated below:
Amount
Infrastructure Projects 5,577,000$
Public Safety Projects 700,000
Environmental Projects 7,045,000
Educational Projects 3,723,000
17,045,000$
Use
The underwriter’s discount payable to the successful bidder for the Bonds will also be paid from sale proceeds of the Bonds.
The County expects to pay all other costs of issuance from the non-borrowed County funds.
Without notice to or the consent of the holders of the Bonds, the County (i) may reallocate the proceeds of the Bonds
to costs of the contemplated projects among such projects in accordance with applicable budgetary procedures or applicable
law, or (ii) amend the Resolution to reallocate proceeds of the Bonds to other projects not originally contemplated by the
Resolution in accordance with applicable law.
Redemption
Optional Redemption
The Bonds that mature on or before July 1, 2032 are not subject to redemption at the option of the County prior to their
maturities. The Bonds that mature on or after July 1, 2033 are subject to redemption at the option of the County as a whole or in
part at any time on or after July 1, 2032, in any order of maturity directed by the County, at a redemption price of the principal
amount of the Bonds (or portions thereof) to be redeemed, plus accrued interest on the principal amount being redeemed to the
date fixed for redemption, without premium or penalty.
[Mandatory Sinking Fund Redemption
The Bonds maturing on July 1, ____ are subject to mandatory sinking fund redemption at a redemption price equal to
100% of the principal amount to be redeemed, together with interest accrued on the principal amount being redeemed to the date
fixed for redemption, on the dates and in the principal amounts set forth below:
(July 1) Amount (July 1) Amount
The foregoing subsection will be completed in the final Official Statement with respect to each term bond of the Bonds, if any,
designated by the successful bidder of the Bonds in accordance with the official Notice of Sale. See Appendix C hereto.]
*Preliminary; subject to change
THE BONDS
Washington County, Maryland 5
Selection of Bonds for Redemption; Notice of Redemption
Certain of the Bonds are subject to redemption at the option of the County as described above under “--Redemption—
Optional Redemption.” If the successful bidder for the Bonds designates term bonds, then the applicable term bonds will be subject
to mandatory sinking fund redemption as described above under “Redemption—Mandatory Sinking Fund Redemption.” If fewer
than all of the Bonds of any one maturity shall be called for redemption, the particular Bonds or portions of Bonds of such
maturity to be redeemed shall be selected by the Bond Registrar and Paying Agent in such manner as in its discretion it shall
determine; provided that, so long as the Bonds are maintained in book-entry form, the selection of individual ownership interests
to be credited with such partial redemption shall be made by DTC (or any successor securities depository) in accordance with DTC’s
(or such successor securities depository’s) then existing procedures.
If all or a portion of the Bonds outstanding are to be redeemed, the County shall give or cause to be given a redemption
notice by first class mail, postage prepaid, at least 30 days prior to the date fixed for redemption to the registered owner of each Bond
to be redeemed in whole or in part at the address of such registered owner appearing on the bond register maintained for the Bonds
by the Bond Registrar and Paying Agent, provided, however, that the failure to mail the redemption notice or any defect in the
notice so mailed shall not affect the validity of the redemption proceedings. The County may, but shall not be obligated to, also
publish such notice of redemption at least once not less than thirty (30) days prior to the date fixed for redemption in a newspaper
circulating in the City of Baltimore, Maryland, and also in a financial journal or daily newspaper of general circulation in the City
of New York, New York. The redemption notice shall state (i) whether the Bonds are to be redeemed in whole or in part and, if
in part, the maturities, numbers, interest rates and CUSIP numbers of the Bonds to be redeemed, (ii) in the case of a partial
redemption of any Bond, the portion of the principal amount which is to be redeemed, (iii) that the interest on the Bonds (or
portions thereof) to be redeemed shall cease on the date fixed for redemption, (iv) the date fixed for redemption and the
redemption price, (v) the address of the Bond Registrar and Paying Agent with a contact person and phone number, and (vi) that
the Bonds to be redeemed in whole or in part shall be presented for redemption and payment on the date fixed for redemption at
the designated corporate trust office of the Bond Registrar and Paying Agent. Any such notice may be conditioned upon receipt
by the Bond Registrar and Paying Agent of sufficient funds to effect such redemption.
From and after the date fixed for redemption, if funds sufficient for payment of the redemption price plus accrued interest
thereon to the date fixed for redemption are held by the Bond Registrar and Paying Agent on such date, the Bonds (or portions
thereof) so called for redemption shall become due and payable at the redemption price provided for redemption of such Bonds
on such date, interest on such Bonds (or portions thereof) shall cease to accrue and the registered owners of such Bonds shall have
no rights in respect thereof except to receive payment of the redemption price thereof plus accrued interest thereon to the date
fixed for redemption from the monies so held by the Bond Registrar and Paying Agent. Upon presentation and surrender for
redemption, the Bonds to be redeemed in whole or in part shall be paid by the Bond Registrar and Paying Agent at the redemption
price plus accrued interest thereon to the date fixed for redemption. If Bonds (or portions thereof) so called for redemption are not
paid upon presentation and surrender, the Bonds designated for redemption in whole or in part shall continue to bear interest at the rates
stated therein until paid.
Sources of Payment
The Act provides that the Bonds constitute an irrevocable pledge of the full faith and credit and unlimited taxing power
of the County to the payment of the maturing principal of and interest on the Bonds as and when they become payable. The Act
further provides, and the County has covenanted in the Resolution, that in each and every fiscal year that any of the Bonds are
outstanding, the County shall levy or cause to be levied ad valorem taxes upon all assessable property within the corporate limits
of Washington County in rate and amount sufficient to provide for or assure the payment, when due, of the principal of and interest
on all Bonds maturing in each such fiscal year and, if the proceeds from the taxes so levied in such fiscal year prove inadequate
for such payment, additional taxes shall be levied in the succeeding fiscal year to make up any deficiency.
Bondholders’ Remedies
It is the opinion of Funk & Bolton, P. A., Bond Counsel, that the County may be sued in the event that it fails to perform
its obligations under the Bonds and the Resolution to the registered owners and that any judgments resulting from such suits would
be enforceable against the County. Nevertheless, a registered owner of a Bond who has obtained any such judgment may be
required to seek additional relief to compel the County to assess, levy and collect such taxes as may be necessary to provide the
funds from which such judgment may be paid. Although there is no Maryland law with respect to this issue, it is the opinion of
Bond Counsel that the appropriate courts of Maryland have jurisdiction to entertain proceedings and power to grant additional
relief, such as a mandatory injunction, if necessary, to enforce the levy and collection of such taxes and payment of the proceeds
thereof to the holders of general obligation bonds, pari passu, subject to the inherent constitutional limitations referred to below.
THE BONDS
6 Washington County, Maryland
It is also the opinion of Bond Counsel that, while remedies would be available to the registered owners of the Bonds and
while the Bonds are entitled to constitutional protection against the impairment of the obligation of contracts, such constitutional
protection and the enforcement of such remedies would not be absolute.
Enforcement of a claim for payment of the principal of or interest on the Bonds could be made subject to the provisions
of federal bankruptcy laws or of any statutes that may hereafter be constitutionally enacted by the United States Congress or the
Maryland General Assembly extending the time for payment or imposing other constraints upon enforcement.
Tax Matters
State of Maryland and Local Income Tax
In the opinion of Funk & Bolton, P.A., Bond Counsel, under existing law, the Bonds, their transfer, the interest payable
thereon, and any income derived therefrom (including any profit made in the sale thereof) shall be at all times exempt from State
of Maryland (the “State”), county, municipal, or other taxation of every kind and nature whatsoever within the State, but no opinion
is expressed as to Maryland estate or inheritance taxes or any other Maryland taxes not levied directly on the Bonds, their transfer,
the interest thereon or the income therefrom.
Interest on the Bonds may be subject to state or local income taxes in jurisdictions other than the State of Maryland under
applicable state or local tax laws. Prospective purchasers of the Bonds should consult their tax advisors regarding the taxable
status of the Bonds in a particular state or local jurisdiction other than the State of Maryland.
Federal Income Tax
In the opinion of Bond Counsel, interest on the Bonds will be excludable from gross income for federal income tax
purposes and is not a specific preference item for purposes of the federal alternative minimum tax under existing statutes,
regulations and decisions as enacted and construed on the date of initial delivery of the Bonds, assuming the accuracy of certain
certifications of the County and continuing compliance with the requirements of the Internal Revenue Code of 1986, as amended
(the “Code”). Interest on the Bonds may be subject to the branch profits tax imposed on foreign corporations engaged in a trade
or business in the United States of America.
Bond Counsel will issue an opinion with respect to the Bonds. Bond Counsel’s opinion will be given in reliance (without
independent investigation) on certifications, covenants and agreements by representatives of the County as to certain facts material
to both the opinion and the requirements of the Code. The County will covenant and agree to comply with the provisions of the
Code regarding, among other matters, the use, expenditure and investment of the proceeds of the Bonds, the use of the projects
financed from proceeds of the Bonds and the timely payment to the United States of America of any arbitrage rebate amounts with
respect to the Bonds or payments in lieu thereof. Bond Counsel assumes no responsibility for, and will not monitor, compliance
with the covenants and agreements of the County. In the event of noncompliance with such covenants and agreements, available
enforcement remedies may be limited by applicable provisions of law and, therefore, may not be adequate to prevent interest on
the Bonds from becoming includable in gross income for federal income tax purposes retroactively to the date of issue.
Ownership of the Bonds may result in other federal income tax consequences to certain taxpayers, including, without
limitation, financial institutions, property and casualty companies, certain recipients of social security or railroad retirement
benefits and certain S corporations. Prospective purchasers of the Bonds should consult with their own tax advisors as to any
collateral federal income tax consequences.
Certain of the Bonds may be offered and sold at a discount (“original issue discount”) equal generally to the difference
between their public offering price and principal amount. For federal income tax purposes, original issue discount on a Bond
accrues periodically over the term of the Bond as interest with the same tax exemption and alternative minimum tax status as
regular interest. The accrual of original issue discount increases the purchaser’s tax basis in the Bond for determining taxable gain
or loss upon disposition (including sale, redemption or payment at maturity). Purchasers of Bonds at a discount should consult
their tax advisors regarding the determination and treatment of original issue discount for federal income tax purposes, and with
respect to any state or local tax consequences of owning such Bonds.
Certain of the Bonds may be offered and sold at a purchase price over the stated redemption price of such Bonds at
maturity. This excess constitutes premium on such Bonds. For federal income tax purposes, original issue premium is amortizable
periodically over a Bond’s term through reductions in the owner’s tax basis for the Bond for determining taxable gain or loss upon
THE BONDS
Washington County, Maryland 7
disposition (including sale, redemption or payment at maturity). An owner of a premium Bond cannot deduct amortized original
issue premium relating to that premium Bond. Purchasers of any Bonds at a premium, whether at the time of initial issuance or
subsequent thereto, should consult their tax advisors with respect to the determination and treatment of premium for federal income
tax purposes, and with respect to any state or local tax consequences of owning such Bonds.
The foregoing is only a general summary of certain provisions of the Code as enacted and in effect on the date hereof
and does not purport to be complete or to identify all aspects of federal income taxation that may be relevant to a particular
purchaser of the Bonds in light of his or its particular circumstances and income tax situation. Prospective purchasers of the
Bonds should consult their own tax advisors as to the effects, if any, of the Code in their particular circumstances. Bond Counsel
will express no opinion regarding other federal tax consequences arising with respect to the Bonds.
See Appendix B hereto for the proposed form of opinion of Bond Counsel to be delivered upon issuance of the Bonds.
Bond Counsel’s opinion will speak only as of its date.
Effects of Future Enforcement, Regulatory or Legislative Actions
The Internal Revenue Service (the “Service”) has a program to audit state and local government obligations to determine
whether the interest thereon is includable in gross income for federal income tax purposes. If the Service audits the Bonds, under
current Service procedure, the Service will treat the County as the taxpayer and the owners of the Bonds will have only limited
rights, if any, to participate in the process. Any selection by the Service of the Bonds or of tax-exempt obligations similar to the
Bonds for audit could affect the marketability or market value of the Bonds.
The Service and the U.S. Department of the Treasury have ongoing programs to promulgate regulations to interpret and
apply the provisions of the Code. In addition, from time to time regulatory actions are announced or proposed and litigation is
threatened or commenced that, depending on its conclusion, could modify or impact federal or state tax treatment of tax-exempt
obligations such as the Bonds and could have an adverse effect on the marketability or market value of the Bonds.
From time to time, there are Presidential proposals, proposals of various federal committees, or legislative proposals
in the United States Congress or various state legislatures that, if enacted, could alter or amend the federal tax matters referred
to above, state treatment of the tax status of the Bonds or adversely affect the market value of the Bonds. Furthermore, such
proposals may affect the marketability or market value of the Bonds merely by virtue of being proposed. It cannot be predicted
whether or in what form any such proposal may be enacted or whether, if enacted, it would apply to tax-exempt obligations,
including the Bonds, issued prior to enactment. In addition, legislation enacted after issuance of the Bonds may directly or
indirectly cause interest on the Bonds to be subject to federal or state income taxation (as applicable) or reduce the benefit of the
excludability of interest on the applicable Bonds under existing law. Each purchaser of the Bonds should consult with his or
its own tax advisor regarding any pending or proposed federal or state tax legislation.
Bond Counsel will not express any opinion regarding pending or proposed federal or state enforcement actions,
regulations, litigation or legislative actions.
GOVERNMENT AND ADMINISTRATION
8 Washington County, Maryland
II. Government and Administration
Location
Washington County is situated in northwestern Maryland, bordered by Pennsylvania to the north and West Virginia to the
south. It is bordered on the east by Frederick County, Maryland and on the west by Allegany County, Maryland. Washington
County is approximately 460 square miles in area. The County seat, Hagerstown, is 70 miles northwest of Washington, D.C. and
72 miles west of Baltimore, Maryland. Two major highways, Interstate 81 – running north and south, and Interstate 70 – running
east and west, cross within Washington County’s borders.
The major part of Washington County is fertile valley with rolling terrain. The lowland belt known as the Hagerstown
Valley lies between the Blue Ridge Mountains to the east and the Appalachian Highlands to the west.
Form of Government
The County is a body politic and corporate, which performs all local governmental functions in Washington County except
those performed by the nine incorporated municipalities within Washington County. The executive offices of the County are located
at 100 West Washington Street, Hagerstown, Maryland 21740. The County’s website is www.washco-md.net. Any references in
this Official Statement to the County’s website are provided for convenience only. The information on the County’s website is not
incorporated herein, by reference or otherwise.
Under the Code of the Public Local Laws of Washington County (2019 Edition), as amended, being Article 22 of the Code
of Public Local Laws of Maryland (the “County Code”), both the executive and legislative functions of the County are vested in the
elected, five-member Board of County Commissioners of Washington County (the “Board”). The Board may only exercise such
powers as are conferred upon it by the General Assembly of Maryland, including authorization to issue debt to finance its capital
projects. County Commissioners are elected on a countywide basis and serve four-year terms.
Each member of the Board has one vote and a simple majority of the Board is sufficient to take action subject to the
authority vested in the Board by the County Code. Emergency action also requires a simple majority vote. The Board elects its own
officers. The General Assembly of Maryland must authorize powers not specifically authorized by the County Code.
As authorized by the County Code, the Board appoints a County Administrator. The County Administrator is selected on
the basis of his or her executive and administrative abilities, including his or her knowledge and experience in public administration.
The County Administrator is charged with the supervision of the departments and agencies of the County and oversight of day-to-
day operations in conformity with all laws applying to the County.
County financial matters are administered in part through the office of the Treasurer of Washington County. The County
Code establishes the elective office of County Treasurer. The County Treasurer is constituted the collector of County and State
taxes, charges and assessments and is charged with the enforcement of collection of taxes in the manner provided by law.
As authorized by the County Code, the Board appoints the CFO. The CFO is charged with assisting the Board in the
preparation and administration of the County budgets and other accounting and fiscal matters as the Board deems necessary. In
addition, the CFO is responsible for the study of the organization, methods and procedures of each office, department, board,
commission, institution, and agency of County government. The CFO reports to the County Commissioners. [The position of
CFO is filled on a temporary basis by an Interim CFO as of the date of this Official Statement.]
GOVERNMENT AND ADMINISTRATION
Washington County, Maryland 9
Legislative and Administrative Officials
Board of County Commissioners
JEFFREY A. “JEFF” CLINE, a third-term County Commissioner, serves as President of the Board of County
Commissioners and is a Williamsport, Maryland, resident. Mr. Cline is a graduate of Williamsport High School and
Hagerstown Community College. As a former realtor, he has approximately 10 years of experience selling residential and
commercial property in Washington County. He graduated from the Maryland Association of Realtors’ 2008 Leadership
Academy, received the Graduate of Realtor Institute (GRI) designation and is also a graduate of the 2013 Leadership
Washington County Class 26. Mr. Cline served on the Williamsport Town Council from 2005 to 2009.
TERRY L. BAKER, a fourth-term County Commissioner, was first elected in 2006, and serves as Vice-President of the
Board of County Commissioners. Mr. Baker is a 1973 graduate of Williamsport High School, a 1975 graduate of Hagerstown
Community College and a 1978 graduate of Auburn University, with a bachelor’s degree in Education. Mr. Baker retired in 2015
from the position of Washington County Students Trades Coordinator for the Washington County Technical High School after
being an educator for 34 years. Prior to being elected a County Commissioner he served from 2002 to 2004 as a member of the
Council for the municipality of Clear Spring, Maryland, and as Assistant Mayor for such municipality from 2004 to 2006.
WAYNE K. KEEFER, a second-term County Commissioner, is a life-long resident of Washington County and resides in
his hometown of Hancock. A graduate of Hancock Middle-Senior High School, Mr. Keefer continued his education locally at
Hagerstown Community College, then earned his B.S. and M.B.A. degrees from Frostburg State University. Mr. Keefer has over a
decade of experience as a commercial banker with roles in consumer lending and corporate accounting. He currently works as both
Program Developer and Adjunct Instructor with his alma mater, Frostburg State University, and is a licensed real estate agent. An
active member of the community, he has previously served as President of the Hancock Chamber of Commerce, Vice-President of
the Rotary Club of Hancock, and Secretary/Treasurer for the Hancock Historical Society.
RANDALL E. “RANDY” WAGNER, a first-term County Commissioner, was born and raised in Washington County.
Mr. Wagner graduated from North Hagerstown High School and is a veteran of the United States Coast Guard, where he served
for four years. Mr. Wagner worked at Mack Truck for 17 years before becoming a small business owner in Washington County,
owning and operating 40 West Marine in Clear Spring for eight years. He has served the local community as a realtor for the
past 20 years and is a licensed private pilot. Prior to his election to the Board of County Commissioners, Mr. Wagner served
on the Animal Control Board of Washington County for eight years and held the position of Vice-Chair.
CHARLES A. “CHARLIE” BURKETT, JR., appointed by the Governor on April 2, 2021 to fill a vacant County
Commissioners seat and sworn into office on April 6, 2021, was born and raised in Washington County. Mr. Burkett graduated
from Clear Spring High School. Mr. Burkett, an entrepreneur, built several successful small businesses in Washington County
over the course of 25 years. In 2018, Mr. Burkett sold all three of his businesses to enter full time ministry at his church, and
currently works as the Ministry Support Coordinator. He also serves the local community by volunteering for local agencies,
such as Meals on Wheels and Mt. Hope Prison Ministry.
County Treasurer
TODD L. HERSHEY, County Treasurer, was first elected to his position in November 1986. He holds a Bachelor of
Science degree, majoring in Sociology, from Guilford College and a Master of Science degree in Management and Administration
from Hood College. He was formerly a commercial banker.
GOVERNMENT AND ADMINISTRATION
10 Washington County, Maryland
Administrative Officials
JOHN M. MARTIRANO Esq., County Administrator, was appointed to such position effective December 28, 2020. He
has over 19 years prior of experience working as an attorney for Washington County Government. He most recently served as
Chief Legal Counsel for Washington County Public Schools. Mr. Martirano first joined the County in 1999 as Assistant County
Attorney. He then went on to become Deputy County Attorney, followed by becoming County Attorney in 2005. Mr. Martirano
brings a depth of experience to the County Administrator position, having previously provided legal advice and services to the Board
of County Commissioners and County departments, agencies, boards and commissions, affiliated nonprofit agencies and the
Washington County Sheriff’s Office.
KELCEE G. MACE, Interim Chief Financial Officer, holds a B. A. degree in Accounting from Juniata College. She is
currently working towards the Certified Public Finance Officer designation through the Government Finance Officers Association
of the United States and Canada (the “Government Finance Officers Association”). Mrs. Mace was hired by Washington County
in 2014 as an accountant, was promoted to Deputy Director of Budget and Finance in 2018 and was appointed as Interim Chief
Financial Officer in December 2021. She is a member of the Maryland Government Finance Officers Association and the
Government Finance Officers Association.
KIMBERLY K. EDLUND, C.P.A., Director of Budget and Finance, is a summa cum laude graduate of Shepherd
University with a B.S. degree in Accounting. She earned a Master of Business Administration degree from Frostburg State
University. Ms. Edlund was hired by Washington County in 1995 as the Assistant Director of Budget and Finance and was
promoted to Director in 2014. Prior to her employment with Washington County, she was a Senior Accountant with a regional
public accounting firm. Ms. Edlund is a member of the American Institute of Certified Public Accountants, the Maryland
Association of Certified Public Accountants, the Maryland Government Finance Officers Association and the Government Finance
Officers Association.
KIRK C. DOWNEY, County Attorney, has been employed with the County Attorney’s Office since 2004, starting as the
Assistant County Attorney. He was named Deputy County Attorney in 2012 and as County Attorney in 2018. Mr. Downey
graduated cum laude from Duke University in 1994 with a B. A. degree. He received his J.D. degree from the University of
Richmond School of Law in 1997 and was admitted to the Maryland Bar. He is also admitted to practice before the U. S. District
Court for the District of Maryland, U. S. Court of Appeals for the Fourth Circuit, and the U. S. Supreme Court. He maintained a
private practice from 1997-2005. Mr. Downey is a member of a variety of community organizations and serves or has served on a
number of non-profit boards of directors, including the boards of Horizon Goodwill Industries, Inc. and the Washington County
Community Action Council. He is a past member and chair of the Trial Courts Judicial Nominating Commission of Washington
County and has been a member of the Hagerstown Rotary since 2002. Mr. Downey is also a member of the American, Maryland,
and Washington County Bar Associations.
,
GOVERNMENT AND ADMINISTRATION
Washington County, Maryland 11
Washington County Government Organizational Chart
County Employment
As of June 30, 2021, the County employed 785 full-time employees and 269 part-time employees, including seasonal
positions. The County has a compensation and classification plan, which is complemented by a performance evaluation system.
There are 149 employees of the County’s Division of Public Works, Division of Emergency Services, and Division of
Environmental Management represented by a collective bargaining agreement that expires on June 30, 2023. The County has not
experienced a work stoppage due to labor relation disputes and considers its relationships with employees to be good.
Pension and Retirement System
Employees of the County government are provided retirement benefits through a pension plan (the “Plan”). Participation
in the Plan is mandatory and there were 1,283 participants as of June 30, 2021. The Plan also provides death and disability benefits.
The employees and the County fund the guaranteed allowance. Approximately 27% of the non-uniformed participants contribute
to the Plan at the rate of 5.50% of their annual salary and the remaining non-uniformed and uniformed employees contribute 6.00%
of their annual salary.
The County’s contribution is comprised of three parts: (i) contribution to cover current service costs, (ii) annual accrued
liability contribution to liquidate the County’s unfunded accrued liability by July 1, 2039 and (iii) annual additional accrued liability
contribution to liquidate the County’s additional accrued liability due to actuarial gains and losses, benefit changes and assumption
changes. Contributions are based on an assumed investment rate of 7.25% compounded annually. Contributions are currently
funded at 25% of total salary expense. Salaries are assumed to increase at an annual rate of 3.00%. Contributions from participants
and from the County are pooled to provide the guaranteed allowance for each member.
GOVERNMENT AND ADMINISTRATION
12 Washington County, Maryland
The following table presents the pension and retirement contributions and unfunded liabilities of the County and certain
County agencies for completed fiscal years 2018 through 2021 and for fiscal year 2022. For fiscal year 2022, which began July 1,
2021, the County has already paid the $11,148,433 amount reflected in the “Total” column in the table below. This payment is the
aggregate of the amounts reflected in the columns “Current Service Costs” and “Recommended Payment for Unfunded Accrued
Liability”.
As of
July 1
Current
Service Costs
Recommended
Payment for Unfunded
Accrued Liability Total
Unfunded
Accrued Liability
As a result of the implementation of GASB Statement 68–Accounting and Financial Reporting for Pensions, the County
modified its accounting for the Plan, while continuing to use the same actuarial cost method for determining contributions to the
Plan. For fiscal years prior to fiscal year 2015, costs and funding contributions were based on the Projected Unit Credit actuarial
cost methods. For fiscal year 2015 and later, the funding contributions remain based on the Projected Unit Credit funding method
while the GASB liabilities reflected in the financial statements are based on the Entry Age Normal cost method, as required by
GASB 67 and 68. The new method produces higher liabilities but lower normal costs than the previous method. However, both
methods produce actuarially sound contribution (funding) or liabilities (GASB), and annual contributions are intended to fully fund
the Plan’s July 1, 2021, unfunded liability by July 1, 2039.
Please refer to Notes 1 and 11 to the financial statements for fiscal year 2021 and to the Required Supplementary
Information set forth in Appendix A to this Official Statement for additional information regarding the County’s pension obligations.
Other Post–Employment Benefits
The County implemented the provisions of Governmental Accounting Standards Board (GASB) Statement 43, Financial
Reporting for Post-Employment Benefit Plans Other Than Pension Plans (“OPEB”) and GASB 45, Accounting and Financial
Reporting by Employers for Post-Employment Benefits Other Than Pensions in fiscal year 2008.
The County’s OPEB plan is a single employer defined benefit healthcare plan. The County established a trust for
administering the plan assets and paying healthcare costs and death benefits on behalf of the participants.
There is no vesting in the post-employment health benefits, and they are subject to change at any time. All employees
who retire from the County may participate in the program. In order to be eligible, the retiree must have (i) a minimum of five
years of County service, and (ii) immediately preceding retirement, been enrolled in a medical, vision, or prescription drug
insurance plan offered to active employees in the County. The retirees pay 50% of the health insurance premium. Retirees
participating in the County’s health plan are also covered by a death benefit equal to their final annual salary, not to exceed
$100,000. These benefits cease when the retiree attains age 65 or becomes Medicare eligible. As of June 30, 2021, 49 retirees
were receiving OPEB benefits and 163 employees were retirement-eligible.
The County intends to fund any annual short-fall between the OPEB annual required contribution and actual pay-go
expense into a legally executed trust fund. The trust fund is invested as a long-term pension trust, using an appropriately balanced
portfolio of equities and debt instruments, to prudently maximize long-term investment returns.
GOVERNMENT AND ADMINISTRATION
Washington County, Maryland 13
The net OPEB liability (asset) is equal to the total OPEB liability minus the net position of the plan. The result as of June
30, 2021 is as follows:
Components of Net OPEB Obligation
Please refer to Note 16 to the financial statements for fiscal year 2021 and to the Required Supplementary Information
set forth in Appendix A to this Official Statement for additional information regarding the County’s OPEB obligations.
Insurance
The County maintains commercial insurance for general liability, automobile, excess workers’ compensation, law
enforcement, public officials’ liability, and catastrophic coverage. The County is required to provide unemployment insurance
coverage for County employees.
Certain Services and Responsibilities
Education
The Board of Education of Washington County (the “Board of Education”) implements all educational policies and
programs for public schools in Washington County under the administration of the State Board of Education. The Board of
Education, composed of seven members elected for four-year terms, oversees 22,171 students (including 1,040 in pre-kindergarten),
in 47 instructional facilities, which include elementary, middle, high and combined schools. The average unrestricted Pre-K-12 per
pupil expenditure was $13,179 for the 2020-21 school year.
The largest General Fund appropriation by the County in its adopted budget for fiscal year 2022 is $105,841,710 for
the Board of Education, which represents 42.00% of the General Fund budget. This appropriation is for operating expenditures.
In addition, the County appropriated $12,314,000 in its capital budget for fiscal year 2022 for Board of Education projects.
Washington County’s high school graduation rate for the 2020-2021 school year as compared to other selected peer
group counties and the State of Maryland is as follows:
Washington Frederick Cecil Carroll Charles St. Mary’s State of
County County County County County County Maryland
90.91%93.73% 91.88% 94.99% 93.58% 91.02% 87.20%
GOVERNMENT AND ADMINISTRATION
14 Washington County, Maryland
Training/Higher Education
Within a 70-mile radius of the County seat, the City of Hagerstown, there are more than 30 institutions of higher learning.
There are numerous opportunities in Washington County for residents to obtain education and training beyond the high school level.
The following describes certain programs and schools within Washington County.
Training
Western Maryland Consortium provides a wide range of workforce development services for jobseekers and employers.
Employer services include referral of applicants, customized training, financial aid for on-the-job training, recruitment, and screening
assistance. Services are generally provided at no cost to employers.
Washington County Technical High School is a two-year public high school that is under the administration of the
Washington County Public Schools. English, math, science and social studies core subject courses and 17 career and technology
programs are offered. These programs prepare students for professional/technical careers based on current industry skill standards.
Enrollment is open to qualified 11th and 12th grade students, and tuition paying adults.
Barr Construction Institute, an education division of Associated Builders and Contractors, Inc., offers management
education and professional industrial, commercial, and apprenticeship trade training. Construction and maintenance training is
recognized by the U.S. Department of Labor, Bureau of Apprenticeship & Training, and is accredited by the National Center for
Construction Education and Research (an affiliate of the University of Florida).
Pittsburgh Institute of Aeronautics (“PIA”) established the Federal Aviation Administration (FAA) - approved Aviation
Maintenance Technician (AMT) 16-month education program at the Hagerstown Regional Airport. With the skills PIA graduates
acquire from the program, they are equipped to work in many industries including aviation, mechanical systems, hydro-mechanical
systems and the green technology field.
Higher Education
Hagerstown Community College (“HCC”), founded in 1946, was the first community college in Maryland. With more
than 100 programs of study, HCC offers workforce preparation and credentialing, university transfer, career development, and basic
education. HCC programs include the STEMM Technical Middle College, which allows high school students the opportunity to
earn college credits and credentials while focusing on science, technology, engineering, mathematics and medical courses, an adult
education program, and the Technical Innovation Center, a small business incubator.
The County appropriated $10,035,290 in its fiscal year 2022 operating budget for HCC. HCC receives the balance of
its funding from student tuition, State grants, and other miscellaneous sources. In addition, the County appropriated $1,108,000
in its capital budget for fiscal year 2022 for HCC projects.
Purdue University Global, a public online, non-profit university for working adults, offers over 100 programs at the
certificate, associate, bachelor, master and doctoral level in the areas of business, criminal justice, education, health services,
information technology, law, and nursing. Purdue University Global is part of the respected Purdue University system.
University System of Maryland at Hagerstown (“USMH”) opened in January 2005 and is located in Hagerstown’s
historic City Center. USMH is part of a regional system offering 13 undergraduate and 10 graduate degree programs from six
respected universities within the Maryland system: Frostburg State University, University of Maryland Global Campus, University
of Maryland Eastern Shore, Towson University, Coppin State University and Salisbury University. Students can complete a
bachelor’s degree or earn a master’s degree. USMH also offers access to on-site academic advising, computer labs, and a full-
service library.
GOVERNMENT AND ADMINISTRATION
Washington County, Maryland 15
Planning and Zoning
The Washington County Planning Commission was created in 1957. The Planning Commission consists of seven
members appointed by the Board and is supported by the County’s Planning and Zoning Department with a staff of 15.
Planning staff members review plans and provide reports and recommendations to the Planning Commission. The Planning
Commission has final authority to approve subdivision and site development plans. Another of the primary responsibilities of
the Planning Commission is the Comprehensive Plan for the County. The Planning Commission first recommended the
adoption of a Comprehensive Plan for Washington County in 1971. Major updates to the Comprehensive Plan were completed
in 1981 and in 2002. Another update of the Comprehensive Plan is now in progress, with adoption expected in 2022.
From the original adoption in 1973 and through amendments in 2002, 2005 and 2012, the Zoning Ordinance provides
seven classifications for industrial development: (i) “Industrial General” which encompasses heavy manufacturing plants
requiring extensive transportation, water and sewerage facilities; (ii) “Industrial Restricted” which encompasses light
manufacturing such as processing or assembly of previously processed materials; (iii) “Planned Industrial” which encompasses
the planned development of industrial park locations; (iv) “Airport” which permits industrial uses that have a need to be located
near the airport or provide airport related services and include height limitations located around the Hagerstown Regional
Airport; (v) “Highway Interchange District” which allows light industrial and commercial uses in the vicinity of interstate
interchanges to take advantage of transportation needs and opportunities; (vi) “Office, Research and Technology” which is
geared toward the development of corporate offices, research facilities, and high-tech communication land uses; and (vii)
“Office, Research and Industry” which allows a mix of technology and selected industries with increased performance
standards.
The Planning and Zoning Department continues to update and revise the Subdivision Ordinance, the Zoning Ordinance
and other ordinances and functional plans that relate to land development in Washington County. In July 2012 the County
adopted major revisions to the zoning text and map for the Urban Growth Areas to implement the recommendations of the
Comprehensive Plan. Similar map and text amendments affecting areas around the designated Town Growth Areas of
Boonsboro, Smithsburg, Hancock and Clear Spring were adopted in 2017. Those revisions are designed to create a more
desirable and efficient urban living environment. The amendments include improvements to the design guidelines in the
industrial districts mentioned above. A new educational zone, called Education, Research and Technology, is designed
specifically to allow Hagerstown Community College to partner with emerging high-tech industries and expand its role as
business partner in the community. In an effort to coordinate development and infrastructure needs, staff is continuing to review
the Adequate Public Facilities and the Excise Tax Ordinances for possible improvement. The County has also devised an
analysis and mitigation protocol to manage the effects of increases in public school enrollments that result from new residential
development.
The Water and Sewerage Plan, the Solid Waste Plan and the Land Preservation, Parks and Recreation Plan are other
plans prepared and administered by the Planning and Zoning Department to assist in the development of the County in an
orderly fashion. The State requires that the County update each of these plans, as well as the Comprehensive Plan, at regular
intervals.
Land use control and planning within the County’s nine incorporated municipalities is under the jurisdiction of the
municipalities. Each of the municipalities has adopted its own zoning and land development regulations.
GOVERNMENT AND ADMINISTRATION
16 Washington County, Maryland
Hospital and Medical Care
Meritus Health
Meritus Health, located in Hagerstown, Maryland, is the largest health care provider in Western Maryland. As a
community-focused, not-for-profit system, Meritus Health’s programs span the continuum of health care, ranging from inpatient
care to occupational health services to physician practices and outpatient care.
Meritus Medical Center, which opened in 2010, is a state-of-the-art, Joint Commission-accredited hospital with 257
licensed beds in single-patient rooms. Services offered include a special care nursery, a level III trauma program, a primary stroke
center and a wound center, as well as a cardiac diagnostic laboratory. Hospital services that address outpatient needs include the
John R. Marsh Cancer Center, Meritus Total Rehab Care, Meritus Endocrinology Specialists, Meritus Home Health, Meritus
Medical Laboratory and Equipped for Life.
Meritus Medical Group, with more than 100 physicians and advanced practice providers, is a medical neighborhood of
primary and specialty care practices offering comprehensive, coordinated health care services to all ages.
Washington County Health Department
The Washington County Health Department, which provides various health services to the citizens of Washington County,
is budgeted to receive a total of $2,339,270 in fiscal year 2022 from the County. Along with the main headquarters, it has staff and
programs based at two other sites. The Health Department employs a total of approximately 150 full-time and part-time personnel
in five divisions.
The Environmental Health Division of the Health Department engages in food and restaurant inspection, well and septic
services, community services, transient and non-transient water analysis, rabies control, complaint and outbreak investigations, and
emergency response. The Nursing Division is responsible for maternal and child health programs, communicable disease
surveillance and control, tuberculosis control, refugee and migrant health services, reproductive health services, STD screening and
treatment, HIV and AIDS services, immunizations, Maryland Children’s Health Insurance Program, cancer screening, vision
screening, adult evaluation and review services, and WIC services. The Health Planning and Strategic Initiatives Division is
responsible for relaying of public information, community relations, emergency preparedness, as well as developing and maintaining
agency partnerships and providing chronic disease prevention and control initiatives. The Division of Behavioral Health Services
provides a comprehensive system of care, including prevention, intervention, referral and treatment services for substance use and
mental health disorders in a variety of settings. The Administration Division, which includes Accounting, Personnel, Information
Technology, Procurement, Billing, Maintenance and Health Officer staff, provides management support for all programs within the
agency.
Other Medical Facilities
The George W. Comstock Center for Public Health Research and Prevention is a facility of the Johns Hopkins
Bloomberg School of Public Health and was established in 1962 as a joint enterprise of the Maryland Department of Health
and Mental Hygiene, Washington County Health Department and The Johns Hopkins University. The center has expertise and
capacity in the conduct of large community health surveys, as well as a close working relationship with the County Health
Department. Funding, sponsored through research grants by the National Institutes of Health as well as private foundations,
supports 20 to 30 staff members in the Comstock Center. Research includes heart disease surveillance and epidemiology of
cancer, heart disease, lung disease, diabetes, sleep and other conditions. Prevention research results are disseminated nationally
and internationally primarily through numerous journal publications.
There are nine privately owned licensed skilled nursing facilities with a total of 1,007 beds and one State-owned licensed
skilled nursing facility with 63 beds in Washington County. All of these facilities are dually certified by Medicare and Medicaid.
In addition, there are 19 privately owned assisted living facilities with a total of 752 beds. Other medical facilities include the
Western Maryland Center, a 123 bed State-owned, chronic care facility, and the Brook Lane Psychiatric Center, a privately-owned
psychiatric facility. None of these facilities receive funds from the County.
GOVERNMENT AND ADMINISTRATION
Washington County, Maryland 17
Safety
Law Enforcement
The Washington County Sheriff’s Office, the Maryland State Police, and municipal police agencies provide police
protection in Washington County. The Sheriff’s Office has 101 sworn personnel and 97 radio-dispatched vehicles. The Sheriff’s
Office is responsible for the operation of the Detention Center, which has a capacity of 450 inmates. In October 2016, a Day
Reporting Center opened that provides treatment services to non-violent offenders with drug and/or alcohol addictions, as well as
providing services for the Circuit Court Adult Drug Court Program. The State Police has 35 troopers assigned to the local barrack,
which is located just south of Hagerstown. The Hagerstown Police Department has a full-time force of 108 officers. The Hancock
Police Department employs four full-time officers. In addition, the Smithsburg Police Department employs four officers, and the
Boonsboro Police Department employs five police officers.
Emergency Services
The County’s Division of Emergency Services (“DES”) oversees Emergency Communication/911, Emergency
Management, Fire and Rescue, and the Emergency Medical Services Operations Program.
A new Public Safety Training Center (“PSTC”) will become operational in 2022, with daily oversight being provided
by DES, in collaboration with the Washington County Sheriff’s Office. The PSTC will provide opportunity for enhanced
training and collaboration between Fire, EMS and law enforcement agencies throughout Washington County and the Tri-State
area. The new PSTC, once completed, will encompass 49 acres boasting academic classrooms, fire and law enforcement areas
for tactical training exercises and a defensive driving track.
DES is led by a full-time career Director and three full-time department heads who oversee the daily operational
components of Emergency Services in Washington County. The division has 119 full-time and 23 part-time personnel working
directly within the division.
Emergency Communications
The Emergency Communications Center is overseen by an assistant director with three full-time executive support staff.
The Emergency Communications Center processes all 911 calls for the County and all of the Washington County municipalities
through one central dispatch location. The call center and new digital radio system enables first responders to communicate in a
safe, seamless and compatible way, enhancing their ability to respond to emergencies and save lives. The call center also integrates
the City of Hagerstown’s and Washington County’s non-emergency responders, allowing them to serve the community quickly and
efficiently.
Emergency Management
Emergency Management activities are overseen by an assistant director with support from a full-time emergency
planner. Emergency Management is responsible for mitigation, planning, response and recovery from natural and technical
disasters. Washington County has a Local Emergency Planning Committee, overseen by Emergency Management, that
coordinates disaster planning, conducts drills to exercise the County Emergency Operations Plan, and oversees a community
outreach program consisting of home chemical safety training, citizen preparedness, and pertinent educational programs.
Fire and Rescue
Fire and rescue protection are coordinated through DES by the Deputy Director - Operations. Working collaboratively
with the Washington County Volunteer Fire and Rescue Association (the “WCVFRA”), DES coordinates the services provided by
14 volunteer fire companies and eight volunteer ambulance companies throughout Washington County. All volunteer companies
belong to the WCVFRA. The association has approximately 700 volunteers who provide a combination of firefighting, rescue,
emergency medical and administrative services to the community. Several volunteer companies have hired career personnel to
supplement the volunteer staff during times of low volunteer availability.
Special Operations activities are overseen by the Deputy Director - Operations. The County has a vision to become the
regional leader in providing and coordinating efficient public services. In response to that vision the Special Operations Team has
eight full-time, 23 part-time and additional volunteer personnel who complete extensive training in various technical and/or
specialized areas including hazardous materials, trench rescue, rope rescue, water rescue, structural collapse and confined space
rescue.
GOVERNMENT AND ADMINISTRATION
18 Washington County, Maryland
Fire protection within the City of Hagerstown is provided by a combination career and volunteer fire department. The
department includes six stations with five engines and two ladder trucks. The department is led by a career Fire Chief, a Fire
Marshall, two Assistant Fire Marshalls, and six Shift Commanders. The department has 84 full-time career firefighters and 43
trained volunteer firefighters.
Emergency Medical Services
The Emergency Medical Services (“EMS”) section provides leadership, direction, support and coordination to the
County’s EMS system. The leadership works to continuously improve the efficiency and quality of medical services being
provided to those who reside and travel within the County. EMS is overseen by the Deputy Director - Operations and includes
13 full-time advanced life support (“ALS”) technicians and five part-time ALS technicians. This team deploys four highly
specialized ALS chase units which support the eight independent emergency medical services companies located in the County
in the delivery of the highest quality pre-hospital care. Additionally, personnel are available for supplemental staffing to the
independent companies and are available to provide additional resources for high-risk events and large public gatherings.
A part-time medical director provides medical control and quality assurance programs to help ensure the highest quality
of pre-hospital medical care is consistently delivered to County citizens. An assistant medical director also provides medical control
and quality assurance activities to the Special Response Team, which consists of law enforcement personnel and paramedics who
are trained to deal with high priority law enforcement activities.
Environmental Management
The Division of Environmental Management (“DEM”), which includes the Department of Water Quality, the
Environmental Engineering Department, the Solid Waste Department, the Stormwater Management Department and the
Watershed Department, was created in fiscal year 2007. The State and Federal environmental initiatives as they pertain to
water, wastewater, stormwater, solid waste and nutrients are all jointly related. DEM is responsible for integrating applicable
regulations and applying them to the operations of these departments.
Solid Waste
The Washington County Solid Waste Department is responsible for a solid waste disposal system that protects the
environment and public health. Currently the County disposes of solid waste at the 40 West Landfill, which opened in 2000. At
current disposal rates, this site could meet the County’s estimated disposal needs until 2080. The County is in the process of
evaluating other methods of handling solid waste as an alternative to landfilling. The department operates five solid waste
convenience centers that are strategically located throughout Washington County. Supporting and strengthening individual and
community self-reliance and responsibility in the areas of waste reduction, recycling, and proper disposal of solid waste is the
mission of the Solid Waste Department.
Water Supply and Wastewater Facilities
The County has a master water and wastewater plan, which assigns service priority designations for all areas within
Washington County. These designations range from “No Planned Service” to “Existing and Under Construction”. The plan serves
as a guide for the orderly development and expansion of water and wastewater facilities, both within Washington County and in
those incorporated municipalities owning and operating their own systems, requiring the County or incorporated municipality to
obtain a proper service designation before constructing or expanding water or wastewater services.
The County is authorized to provide public water and wastewater service to areas outside the incorporated municipalities
and may provide service within a municipal corporation located in Washington County with the consent of the municipality. The
County currently provides water and/or wastewater services to nearly all of the immediate densely populated area surrounding the
City of Hagerstown (except the Dual Highway corridor), the areas of Highfield, Elk Ridge, Sandy Hook, and the towns of
Sharpsburg and Smithsburg. The incorporated municipalities of Hagerstown, Boonsboro, Clear Spring, Funkstown, Hancock,
Keedysville, and Williamsport all own their water/wastewater facilities, or portions thereof. In addition to providing the wastewater
service described above, the County operates the water and wastewater systems for the Town of Clear Spring and Brook Lane
Health Services.
GOVERNMENT AND ADMINISTRATION
Washington County, Maryland 19
Five treatment plants serve the County water system with an aggregate capacity of 453,000 gallons per day, with
individual plant capacities from 4,000 to 230,000 gallons per day. The County wastewater system is served by five treatment
plants with an aggregate capacity of 5,746,000 gallons per day, with individual plant capacities from 21,000 to 4.5 million
gallons per day. The County upgraded its wastewater facilities to comply with the State’s enhanced nutrient removal (“ENR”)
strategy. The Winebrenner Treatment Plant ENR upgrade began construction in fiscal year 2015 and was completed in the fall
of 2016. The Conococheague Wastewater Treatment Plant ENR upgrade began construction in the fall of 2016 and was
completed in the spring of 2019.
Usage of water and wastewater systems is measured in Number of Services and Number of Equivalent Dwelling Units
(“EDUs”). Number of Services refers to the number of actual connections and EDU is a unit of measure, which equates the
consumption, or flow of commercial or industrial connections, to the average flow of a residential dwelling unit.
The County bills its customers quarterly except for those for which wastewater treatment service is provided by the
City of Hagerstown, in which case the County’s charges are billed and collected on its behalf by the City of Hagerstown. The
following table shows the total Number of Services and EDUs of the County’s water and wastewater systems and the annual
residential user rates effective July 1, 2021. For customers receiving County collection services only, treatment is provided by
the City of Hagerstown.
Residential
No. of No. of Annual (Avg)
Services EDUs User Rate
Residential
No. of No. of Annual (Avg)
Services EDUs User Rate
WATER SYSTEM
WASTEWATER SYSTEM
The County provides wastewater “treatment only” services to its wholesale customers, which are the towns of Williamsport
and Smithsburg, the Conococheague Pretreatment Facility (the “Pretreatment Facility”), Fort Ritchie and the City of Hagerstown.
The only major wastewater treatment facility for public use in Washington County other than those operated by the County is the
Hagerstown Wastewater Treatment Plant, owned and operated by the City of Hagerstown, which has a capacity of 8 million gallons
per day.
The Pretreatment Facility serves all of Washington County by providing pretreatment of non-hazardous industrial
wastewater, landfill leachate and metals-bearing waste streams, and has a capacity of 125,000 gallons per day (current average usage
is 115,000 gallons per day). The Pretreatment Facility was privatized in 2006 through a long-term lease to a private corporation.
ECONOMIC AND DEMOGRAPHIC INFORMATION
20 Washington County, Maryland
III. Economic and Demographic Information
Department of Business Development
The Washington County Department of Business Development (the “DBD”) is dedicated to creating and sustaining a
positive pro-business climate.
The DBD currently has six full-time employees to conduct the day-to-day operations of the office, as well as business
support and resources, business retention efforts within the County, and marketing business attractions locally and nationally.
Throughout the year the DBD meets with representatives of existing companies in need of assistance, as well as
businesses interested in moving or expanding to Washington County. Discussions include appropriate funding programs,
incentive benefits, customized training programs, workforce development efforts, and other sources of business support. The
DBD has formed strategic partnerships with such organizations as the Maryland Department of Commerce, the City of
Hagerstown, the Washington County Chamber of Commerce, The Greater Hagerstown Committee, Inc., and Washington
County Convention & Visitors Bureau, in order to better serve the needs of businesses in Washington County.
The DBD was actively involved in Washington County becoming certified as the first ACT Work Ready Community
in Maryland, an initiative that matches the labor force with available jobs in Washington County.
The DBD administers the Enterprise Zone Program, identifying eligible businesses that qualify for local real property
tax credits and State income tax credits in the City of Hagerstown and elsewhere in Washington County. For tax year 2021-22
(fiscal year 2022), the City of Hagerstown and the County granted $741,834 and $1,098,548, respectively, in real property tax
credits for private capital investment. The State of Maryland is expected to reimburse $370,917 to the City of Hagerstown and
$549,274 to the County for these credits.
ECONOMIC AND DEMOGRAPHIC INFORMATION
Washington County, Maryland 21
Business Development
New and Expanding Businesses
In calendar years 2021 and 2022, the County experienced new and expanding businesses highlighted by the creation of
1,610 new jobs and known new investments of approximately $306 million. Many of these achievements are a result of
incentive packages provided through partnerships of the County and State to provide training programs, State financing, and
Enterprise Zone tax credits. Projects expected to be completed in calendar years 2022 and 2023 and significant projects
announced in 2022 and 2023 that are cumulatively expected to provide an additional 8,517 new jobs and approximately an
additional $1.35. billion of new investments are noted in the following table based on the most recent information available:
Completed/
Expected Project #New
Company Name Business Type Completion Cost (1)Jobs (1)Sf
Sub-totals 306,150,000 1,610
ReadyGo Ice Melt Manufacturing/Distribution 4Q22 5,000,000 10 30,000 New Business
First Breach Manufacturing/Distribution 4Q22 20,000,000 75 50,000
Volvo VPL R&D 3Q23 33,000,000 12
Stoney Creek Farm & Event Center Expansion 2Q23 18,000,000 20
Ausblick Warehouse/Distribution 1Q23 21,100,000 250 269,522 New Jobs/Construction
National Pike Logistics (Northpoint Dev bldg 1)Warehouse/Distribution 3Q22 126,000,000 500 600,000 New Jobs/Relocation/Construction
National Pike Logistics (Northpoint Dev bldg 2)Warehouse/Distribution 4Q22 75,000,000 300 1,400,000
Penzance (Wright Rd)Warehouse/Distribution 3Q22 60,000,000 500 825,000 New Jobs/Construction
Panattoni Development (Creekside Logistics)Warehouse/Distribution 2Q22 50,000,000 500 730,000 New Jobs/Construction
Bowman Development Flex Space 2Q22 3,500,000 48,000 New Construction
Trammell Crow Company (Sterling Rd bldg 1)Warehouse/Distribution 1Q23 75,000,000 800 1,100,000 New Jobs/Construction
Trammell Crow Company (Sterling Rd bldg 2)Warehouse/Distribution 3Q23 50,000,000 500 750,000 New Jobs/Construction
Johnson Development (2 bldgs)Warehouse/Distribution 1Q23 150,000,000 800 1,800,000 New Jobs/Construction
Great American Brewery Agricultural/Manufacturing 4Q22 500,000 5 New Business
Rockland Estate and Brewery Agricultural/Manufacturing 1Q23 800,000 10 New Business
Blackthorn Capital Partners Mixed Use 4Q22 4,500,000 0 Renovation
Sub-totals 692,400,000 4,282 7,602,522
Hitachi Rail and Test Track Manufacturing/R&D 4Q23 80,000,000 300 300,000 New Jobs/Construction
Penzance (Cushwa Farms)Warehouse/Distribution 4Q23 50,000,000 400 510,000 New Jobs/Construction
Trammell Crow Company (G'castle Pike)Warehouse/Distribution 1Q24 100,000,000 1000 2,000,000 New Jobs/Construction
Currwood Warehouse/Distribution 4Q23 150,000,000 2200 1,919,200 New Jobs/Construction
Bowman Development Warehouse/Distribution 1Q23 55,000,000 250 801,000 New Jobs/Construction
C&O Canal Brewery Agricultural/Manufacturing 2Q23 900,000 10 New Business
Cascade Properties (Former Fort Ritchie)Mixed Use 200,000,000 New Jobs/New Business/Renovation
First Breach Manufacturing/Distribution 4Q22 20,000,000 75 50,000
Sub-totals 655,900,000 4,235
1,654,450,000$ 10,127
Completed Projects 2021/2022
Hagerstown-Washington County, Maryland -- Significant Business Activity for 2022/2023
Type of
Activity
Totals for Projects 2022/2023:
Projects to be Completed 2022/2023
Projects Announced in 2022/2023
ECONOMIC AND DEMOGRAPHIC INFORMATION
22 Washington County, Maryland
Business Parks and Sites
Through the DBD, the County promotes the development of both private and non-profit business parks and sites. The
County also successfully obtains financing for necessary infrastructure through various State and federal agencies to support these
developments as locations for new and expanding businesses. The County offers prospective businesses a selection of sites in
planned industrial/business parks, which include:
Park Total Available Ownership
Acreage Acreage
City of Hagerstown—Washington County
Valley Business Park ………………………...…..…………………273 123 Private
Hagerstown Business Park ………………………...…..………….90 5 Private
Hagerstown Industrial Park ………………………...…..…………251 11 Private
Hunt Ridge Business Park ………………………...…..…………..57 22 Private
MKS Business Park ………………………...…..………………….81 11 Private
Town of Hancock Enterprise Zone:
Hancock Industrial Park………………………………………..…185 157 Town
Raylock Business Park………………………………………..…..55 20 Town
Other Locations:
Airport Business Park …………………….…….….……..………205 45 Nonprofit
Antietam Industrial Park …………………….…….….……..……27 7 Nonprofit
Bowman Airpark ………………….…....……………..……...........56 10 Private
Crossroads Business Park……….…....……………..……...........122 47 Private
Earley Industrial Park ………….........………….…....……………160 52 Private
Friendship Technology Park ………………….…....……………435 69 Private
Friendship Town Center ………………………………………….161 161 Private
Gateway Business Park………………………..…………….……65 21 Private
Greencastle Pike Business Park………………..…………….…..127 42 Private
HGR Aviation Tech Park………………………………….………162 12 Private
Hub Business Park………………………………….……………..130 16 Private
Hunter’s Green Business Center…………..……..………………676 59 Private
Huyetts Business Park…………..……..……………............…….66 10 Private
Interstate Industrial Park…………..……..……………............….457 58 Private
Interstate 70/81 Industrial Park…………..……..……………...…178 26 Private
Light Business Park …………………….……….………...………24 10 Private
Mount Aetna Technology Park at Hagerstown (MATH)……..261 202 Nonprofit
Newgate Industrial Park………………………….………………..161 19 Nonprofit
Orchard Park at Label Lane….........................................................20 20 Nonprofit
Potomac Parkway/Lockwood Business Area…………………..53 21 Private
Showalter Road Center…………………..……….………………..89 89 Private
Top Flight Airpark…....…………………..……….……………….56 8 Private
Vista Business Park………………………………………………..177 74 Private
Washington County Business Park.......………………...…...…..212 35 County
Westgate Industrial Complex……………………………………..175 175 Private
Enterprise Zone:
ECONOMIC AND DEMOGRAPHIC INFORMATION
Washington County, Maryland 23
New Jobs Tax Credit Program
The “New Jobs Tax Credit” is a program initiated by the County in November 2002. The credit was created to help attract
to the local business community companies that are involved in a high-tech industry and that offer well-paying jobs. The program
provides a six-year tax credit for businesses that either expand or relocate in Washington County and qualify under the program’s
guidelines. The credit applies to Washington County’s tax that is imposed on real property owned or leased by the business and the
tax imposed on personal property owned by that business.
Enterprise Zones
Approximately 5,909 acres in Washington County are within two State-designated Enterprise Zones. The City of
Hagerstown/Washington County Enterprise Zone was renewed and expanded by the State in 2021. This zone now encompasses
approximately 4,409 acres located within the City of Hagerstown and Washington County. The zone has more than doubled in size
and includes Hopewell Valley Industrial Park, Washington County Business Park, CSX Valley Park, the City of Hagerstown
Business Park, and the Central Business District in downtown Hagerstown. The Hancock Enterprise Zone was renewed in 2015.
This 1,500 acre zone surrounds the Town of Hancock, stretching from the Pennsylvania border to the Potomac River. The zone
includes commercial and industrial development opportunities in select areas of Hancock as well as commercial frontage along
Main Street. Local and State incentives are available to new or expanding companies in these zones to promote growth of the
industrial and commercial base. Qualified businesses can receive local property tax credits for capital investment and State income
tax credits for the creation of new jobs. Each Enterprise Zone is approved by the State for a 10-year period.
Pad-Ready Commercial Stimulus Program
The Board adopted the “Pad-Ready” Commercial Stimulus Program on October 25, 2011. The program is designed to
encourage developers/builders to bring undeveloped land to a shovel-ready state but is also intended for sites with existing buildings
in need of redevelopment. Under the program, undeveloped parcels of land, demolitions, renovations and expansions of existing
buildings qualify for incentives. Qualifying projects are entitled to priority plan review by the Washington County Development
Advisory Committee, deferral of County site-plan application and review fees, and a real-estate tax credit issuance once buildings
are constructed and occupied. The tax credit is four-tenths of one percent (0.004) of the construction cost of the new improvement
as determined by the DBD and will apply for three consecutive years.
High Performance Building Tax Credit Program
On February 7, 2012, the Board established the High Performance Tax Credit Program. Under the program, property tax
credits are available for buildings that receive silver, gold, or platinum certification in the national LEED (Leadership in Energy and
Environmental Design) ranking system. The amount of the credit depends on which level of certification the building receives and
the increase in its assessed value after construction. Silver buildings are credited 20 percent of the taxes due on that increase; gold
buildings, 25 percent; and platinum buildings, 30 percent.
Job Creation and Capital Investment Real Property Tax Credit Program
The Job Creation and Capital Investment Real Property Tax Credits Program was enacted by the Board in May 2017, to
help attract companies to the local business community that offer well-paying jobs. It is also available to new or established
businesses within the County that expand. This program provides up to a 15-year tax credit for businesses that either expand or
locate in Washington County. The credit applies to Washington County’s real property tax that is imposed on real property owned
or leased by the business, if the business qualifies under the program’s guidelines.
HUBZone
The Historically Underutilized Business Zones (HUBZone) program, through the Small Business Administration, helps
small businesses in urban and rural communities gain preferential access to federal procurement opportunities. Benefits for
HUBZone certified companies include competitive and sole sourcing contracting, 10% price evaluation preference in full and open
contract competitions, as well as subcontracting opportunities. The federal government’s goal is to award at least three percent of
all federal contracting dollars to HUBZone certified small businesses each year; to date, no businesses in the County have qualified.
ECONOMIC AND DEMOGRAPHIC INFORMATION
24 Washington County, Maryland
Opportunity Zone
The federal Opportunity Zone program, started in 2019 and ending in 2029, allows investors to receive substantial federal
tax incentives over that ten (10) year period by investing their capital gains into Opportunity Zones. Washington County has five
Opportunity Zones in two areas: City of Hagerstown and the Town of Williamsport. Opportunity Zones feature new federal tax
incentives designed to drive long-term private investment to distressed communities. Investors are able to defer and even reduce
their federal tax liability on the sale of assets if they place their gains into an Opportunity Fund, which pools capital and support
investments in small businesses and real estate within the Opportunity Zones in order to improve communities and the quality of
life for residents.
Foreign Trade Zone
Washington County’s Foreign Trade Zone (“FTZ”) status was approved by the United States Department of Commerce’s
Foreign Trade Zone Board on July 3, 2002. More than 1,700 acres from five different sites throughout Washington County are
eligible. The sites are ideally zoned for manufacturing, distribution, and warehousing activities. FTZs have been shown to provide
direct benefits to local businesses involved in foreign trade. Through the reduction, elimination, and deferral of tariffs, firms
located within Washington County’s FTZ are able to be more competitive in international markets.
Utilities, Transportation and Communication
Utilities
Electricity: Potomac Edison, a FirstEnergy Company, with its Western Maryland headquarters located in Washington
County, serves the County with a system of transmission and distribution lines of various voltages connected to its generating
stations. The City of Hagerstown distributes electricity to many parts of the City.
Telecommunications: State-of-the-art communications infrastructure, including hybrid cable, digital, fiber optic, wireless
data, cellular 4G LTE, and broadband services are provided via national and regional vendors. AT&T, Sprint, and Verizon operate
within Washington County.
Natural Gas: Columbia Gas of Maryland serves the area with natural gas. Propane is also readily available.
Transportation
Highways: Washington County is served by Interstate Highways I-81, I-70, and I-68, complemented by U.S. 40 and U.S.
11, and State Routes 60, 63, 64, 65 and 68. These highways put Washington County businesses within a day’s drive of one-third of
the U.S. population and half of all retail trade. The Baltimore and Washington, D.C. beltways are an hour’s drive from central
Washington County.
Air: Hagerstown Regional Airport (HGR) is a Part 139 Facility which provides twice weekly service to Orlando/Sanford
International (SFB), via Allegiant. Allegiant also offers summer seasonal flights twice weekly to St Pete-Clearwater (PIE) and
Myrtle Beach (MYR) airports. The airfield also offers fixed base operation services to general aviation, corporate and military
aircraft. There are 17 businesses offering clients a variety of aviation services for all types of aircraft. Approximately 1,600 people
are employed locally as a result of the airport being in Washington County. In addition, Dulles International, Baltimore/Washington
International Thurgood Marshall and Ronald Reagan Washington National airports are located within 70 miles of Hagerstown.
Rail: CSX Transportation and Norfolk Southern Corporation Railways provide economical shipment anywhere on
the Atlantic seaboard. CSX, with a public siding, operates daily trains and connects with other major carriers for long-distance
shipping. The Norfolk Southern mainline is just outside of Hagerstown and a CSX interchange with Norfolk Southern is in
Hagerstown for nationwide access. Immediately adjacent to Washington County in Greencastle, Pennsylvania, Norfolk
Southern Rail operates a 200 acre intermodal terminal. The County is also only 19 miles from CSX’s 85 acre intermodal
terminal in Chambersburg, Pennsylvania. Daily Amtrak and weekday MARC passenger services are available from
Martinsburg, West Virginia (23 miles south of Hagerstown). MARC passenger service from neighboring Frederick County to
Washington, D.C. is also available.
Local Transportation: Washington County Commuter provides local bus service throughout Washington County. Local
taxi service, Lyft, Uber, auto rental and leasing services are available within Washington County.
ECONOMIC AND DEMOGRAPHIC INFORMATION
Washington County, Maryland 25
Communication
Newspapers: The daily newspaper, The Herald-Mail, has a Monday-Saturday circulation of 27,000, and a Sunday
circulation of 32,000. The Hancock News, with a weekly circulation of 2,000, also serves Washington County. Several
metropolitan newspapers, including the Washington Post and The Baltimore Sun, are available daily to residents.
Television: WDVM provides local news, weather, community information, sports coverage and programming to the tri-
state area. Antietam Cable Television and Comcast offer cable and digital television services. Satellite television is available through
private vendors.
Internet: There are numerous private vendors providing local dial-up, wireless, and broadband Internet access. The
Washington County Free Library provides access to the Internet through SAILOR, the State of Maryland’s Online Public
Information Network.
Population
The following table illustrates the population growth of Washington County, the State of Maryland, and the United States
from calendar years 1970 to 2020.
Population Growth
State of Maryland United StatesWashington County
Income
Median household Effective Buying Income (“EBI”) in Washington County was estimated at $60,860 for calendar year
2020. The median household EBI for Washington County, the State of Maryland and the United States are estimated as follows:
2020 2019 2018 2017 2016
Median Household Effective Buying Income
ECONOMIC AND DEMOGRAPHIC INFORMATION
26 Washington County, Maryland
Comparative statistics relating to the distribution of EBI for calendar year 2019 are presented in the following table:
Households By
EBI Group Washington County State of Maryland United States
Distribution of Effective Buying Income (2019)
Area Labor Supply
Washington County has an available civilian labor force of approximately 72,442. In addition, businesses draw employees
from Allegany, Garrett and Frederick counties in Maryland; Franklin and Fulton counties in Pennsylvania; and portions of Berkeley,
Jefferson and Morgan counties in West Virginia. The civilian labor force for all these counties totals more than 431,383.
Employment
Within Washington County there are more than 3,507 businesses. The following table shows the employment statistics
for the 15 largest employers in Washington County as of December 2021.
Employer Employment
ECONOMIC AND DEMOGRAPHIC INFORMATION
Washington County, Maryland 27
Unemployment Rate
Unemployment in Washington County averaged 5.0% between 2017 and 2021. The following table indicates the County’s
average unemployment rate as compared with the State of Maryland for the five most recent calendar years.
2021 2020 2019 2018 2017
Washington County 5.3% 6.8% 3.8% 4.5% 4.4%
State of Maryland 5.6% 6.8% 3.6% 4.2% 4.1%
Unemployment Rate – Annual Average
Construction Activity
Construction activity during the years 2017-2021 in Washington County is provided below:
Year Ended
Dec. 31 Number Value Number Value Number Value
Building Permits
(Value in Thousands)
Residential New Other Permits Total
Housing Starts
The number of single family housing starts in Washington County for the past five years is listed below:
Single Family (One and
Two‑Unit Structures)
Year Ended
December 31
There were 12, 24-unit multi- family buildings constructed during the year ended December 31, 2017. During the years
ended December 31, 2018, 2019, 2020 and 2021 there were no multi-family units constructed.
ECONOMIC AND DEMOGRAPHIC INFORMATION
28 Washington County, Maryland
Agriculture
Agriculture is an important part of Washington County’s economy. Approximately 119,248 of Washington County’s
293,223 acres (41%) are considered farmland by the U.S.D.A. Agricultural Statistical Service. By far the greatest contributors to
agriculture are the livestock and dairy industries. Livestock, poultry and other animal products account for approximately 75% of
the total farm sales.
Washington County is the heart of the fruit industry in Maryland. Apple and peach growers harvest nearly 1,274 acres
annually producing approximately 61% of the State’s apple crop and 27% of the State’s peach crop each year. Dairy is the
principal livestock enterprise. The average number of milk cows is 13,023 head, ranking first in the State. In addition to milk
and fruit, the other chief agricultural commodities are beef cattle and cereal grains. Selected agricultural statistics for
Washington County for calendar year 2017 are as follows:
Washington County Agriculture Statistics, 2017
Estimated market value of land and builiding:
FINANCIAL INFORMATION
Washington County, Maryland 29
IV. Financial Information
Accounting System
The accounts of the County are organized on the basis of funds, each of which is considered a separate fiscal and accounting
entity. The financial position and operations of each fund are accounted for with a self-balancing set of accounts, recording cash
and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are
segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations,
restrictions, or limitations.
Fund Structure
The revenues and receipts of the County are allocated to, and accounted for, in individual funds based upon the
purposes for which they are to be spent. The various funds are identified in the financial statements of the County. The fund
types used by the County are Governmental Funds (General, Special Revenue and Capital Projects), Proprietary Funds
(Enterprise and Internal Service) and Fiduciary Funds (Trust and Agency). Details of the County’s fund structure are set forth
in the Notes to the financial statements for fiscal year 2021 that are included in Appendix A to this Official Statement.
The County’s general fixed assets and general long-term obligations are reported in the applicable governmental or
business-type activity columns in the government-wide financial statements.
Basis of Accounting, Measurement Focus, and Financial Statement Presentation
Basis of accounting refers to the time at which revenues and expenditures are recognized in the accounts and reported in
the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus
applied. The accounting policies of the County conform to generally accepted accounting principles as applicable to governments.
The government-wide financial statements are reported using the economic resources measurement focus and the accrual
basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements for the General Fund, Special Revenue Fund and Capital Projects Fund are
reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are
recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible
within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers
revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
Taxpayer-assessed income, gross receipts, and sales taxes are considered “measurable” when in the hands of intermediary
collecting governments and are recognized as revenue at that time. Anticipated refunds of such taxes are recorded as liabilities and
reductions of revenue when they are measurable and their validity seems certain.
Accounting Enterprise System
The County utilizes an integrated financial, human resource, and budget enterprise system. This enterprise system has a
web-based platform that streamlines workflow, which allows the County to automate numerous processes including real-time
reporting. All County departments have access to the system for requisitioning, reporting, and inquiries for information concerning
accounts and project status at any time. The system provides an excellent means for control of finances and allows for efficient use
of resources. It also promotes accountability by generating timely reports and allowing budgetary controls for management.
FINANCIAL INFORMATION
30 Washington County, Maryland
Capital Budget Preparation Software
The County uses a web-based capital budget preparation and monitoring system. It allows all departments and outside
agencies to access the system and input their capital budget requests, including funding sources, cost categories and operational
costs. The County set up a priority-ranking matrix system within the software. The ranking system is composed of 14 scored and
weighted criteria, which is the basis for assigning projects into one of the five priority ranking categories. The ranking system
provides management with the information required to make decisions regarding scheduling and funding for each project. The
capital budget system provides multiple reporting options and allows for continuous monitoring of activities of existing projects.
Budget Process and Schedule
The County’s budgetary practices focus on long-term financial planning to ensure that budget decisions are understood
over multiple years and to assess whether program and service levels can be sustained over those years. Practices require the
development of organizational goals, policies, and procedures to achieve the goals, and making the allocation of resources
available to accomplish the goals.
The County’s budget process is key to its long-range strategic plan. With the adoption phase ending in May, the entire
budget process encompasses nine months in preparation time. Financial forecasts, economic trends, policy reviews, and citizen
input are all part of this process and result in the development of the operating and capital budgets for the year. The following
describes the phases of the budget process.
Financial Capacity and Analysis Phase
The County develops statistical analysis of major revenue sources through various available resources. The County
prepares and annually updates a long-range (five year) financial forecasting system, which includes projections of revenues,
expenditures, future costs, and financing of capital improvements that are included in the Capital Improvement Budget, Cost of
Service Plans, and the Operating Budget.
Revenue estimates are monitored to identify any potential trends which would significantly impact the various revenue
sources. The County reviews current construction trends, the number of building permits, mortgage rates, and other economic data
that can impact revenue collections.
The County uses other financial modeling techniques that impact the long-term operations and rates for the Water Quality
and Landfill Enterprise Funds.
The County annually undertakes a detailed analysis of its financial position. The County then plots and converts its
financial position into certain financial ratios and examines its performance trend. Most of the financial trend analysis includes peer
group median and historical data. Trend indicators are tracked for specific elements of the County’s fiscal policies for evaluation.
Debt capacity is evaluated on an annual basis prior to the adoption of the Capital Improvement Budget. The County
examines statistical measures to determine debt capacity and creates ratios, which it compares to the ratios of other counties within
its peer group, rating agency standards, and Washington County’s historical ratios to determine debt affordability.
The economic and financial trend analysis is an integral part of the County’s decision-making process that includes short
and long-term forecasts. The County’s current financial condition as well as future financial capacity, long-range plans, and future
goals and visions are evaluated. During this phase forecasting assumptions, policy and reserve reviews, compensation adjustments,
and inflation assumptions are made.
FINANCIAL INFORMATION
Washington County, Maryland 31
Budget Development Start
The development of the budget starts with notice to departments and agencies that the capital and operating budget
programs are ready for input. Instructions for completing the budgets, due dates, and updated information on budgetary numbers,
personnel positions, and goals are included with the notification.
Budget Development Phase
Capital Improvement Budget development begins in the winter after the development of the debt capacity and financial
trend and economic trend analysis. The Capital Improvement Program (the “CIP”) provides a comprehensive approach to planning
and impacts all facets of County operations. The County Administrator, the CFO, the Director of Engineering, the Director of
Planning, and the Director of Public Works comprise the Capital Improvement Program Committee (the “CIP Committee”). From
the time the CIP’s initial annual review begins in October through its adoption in May of each fiscal year, there is constant interaction
among departments, the CIP Committee, and the elected officials. This effort is characterized by cooperation and reflects a common
goal of ensuring that the CIP meets the objectives of the County and remains affordable and achievable.
The CIP is reviewed in conjunction with the annual debt affordability analysis and with revenue projections, inclusive of
rate analysis, in order to determine funding availability. A financial analysis of funding sources and project costs is conducted for
all proposed capital improvement projects in conjunction with the results of the priority ranking system.
It is the CIP Committee’s responsibility to review all requests that County departments and agencies submit. Based on the
results of the priority ranking, and current and future needs, as developed in the 10-year capital plan, and available funding sources,
the CIP Committee determines which capital projects best meet established criteria for the current fiscal year Capital Improvement
Budget and the 10-year forecast. Operating impacts of current and proposed capital projects are also taken into consideration by
staff when developing the Capital Improvement Budget.
Operating Budgets represent existing service levels and two years of prior historical information. Departments and
agencies request funding for the upcoming fiscal year. Any increases in program and services require justification, as do all capital
outlay requests. These requests are summarized with projected funding shortfalls or overruns calculated.
Review/Modification Phase
The CFO presents the Operating and Capital Improvement Budgets to the Board. Preliminary recommendations are
reviewed to ensure that preliminary budgets address the County’s goals and fiscal management policies. The County Administrator
and the CFO work with the Board on the proposed budget documents for adoption.
Adoption Phase
Proposed budgets are voted on by the Board to take to a public hearing to communicate to the general public for all
operating and capital funds. Advertisement is disseminated through the local newspaper, handouts, and the County website.
Documents and handouts are prepared for the public.
Public hearings are held on the proposed budgets along with the current tax levy. A 10-day waiting period is held for
public comment. Local law requires a balanced budget to be adopted by July 1st.
Budget Monitoring
Department managers are responsible for their budgets throughout the fiscal year. Expenditure percentages are calculated
and compared to budget. Corrective action, if necessary, is taken if serious negative trends exist. Management and the Board have
real-time budgeting reports available on-line, as well as updates on major events and/or issues.
The County’s Operating Budget is adopted at the program/service level and the Capital Improvement Budget is
adopted at the project level. Transfers between programs or projects in excess of $25,000 require Board approval. Any transfer
out of contingency requires the approval of the Board.
The CFO reviews the project status and revenues before any issuance of debt. Any modification to a project and/or
the total debt to be issued based upon this review is required to be approved by the Board either for an increase or decrease in
total borrowing amount or for a change in the total borrowing source.
FINANCIAL INFORMATION
32 Washington County, Maryland
General Fund Revenues and Expenditures
The General Fund’s major function is to provide funding for education, public safety, courts, planning, permits, public
works, parks and recreation, general operations, and economic development. The major revenue sources to provide these programs
and services for the public are: Real and Personal Property Tax, Income Tax and Recordation Tax. The following table displays
the County’s General Fund actual revenues and expenditures compared to the final budget for fiscal year 2021, budgeted revenues
and expenditures for fiscal year 2022, and the proposed budget for fiscal year 2023.
Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023
Final Actual Original Proposed
Budget Amounts Budget Budget
REVENUES
Property Tax
EXPENDITURES
EXCESS OF REVENUES OVER EXPENDITURES -$ 5,639,306$ -$ -$
Source: Washington County Department of Budget and Finance
(1) Budget revisions are possible until the close of the year on June 30, 2022. As of December 1, 2021, amendments to the fiscal year 2022 budget since its adoption have not been material.
Fiscal Years 2021, 2022 and 2023
County Commissioners of Washington County
Budget Comparison
General Fund
FINANCIAL INFORMATION
Washington County, Maryland 33
The following table displays the County’s General Fund revenues and expenditures on a GAAP basis with additional ratios
for fiscal years 2017 through 2021.
2021 2020 2019 2018 2017
Revenues:
Taxes, interest and penalties…………………………………. 264,408,267$ 230,252,369$ 222,040,259$ 210,500,448$ 208,934,726$
Shared taxes and grants ……………………………………… 22,158,043 7,710,163 4,875,585 3,267,236 4,431,597
Licenses and permits …………………………………………. 1,374,019 1,162,809 1,283,820 1,417,875 1,189,019
Revenues from use of money and property ………………..2,046,222 2,297,095 3,262,373 2,390,598 1,327,838
Charges for services…………………………………………..1,026,841 1,136,780 1,365,493 1,328,177 448,532
Other revenue …………………………………………………. 1,732,061 3,242,205 4,250,017 3,050,871 2,410,607
Expenditures:
General government ………………………………………….. 42,101,220$ 28,065,053$ 27,349,583$ 26,733,212$ 26,764,285$
Other financing sources(uses):
Net bond proceeds…………………………………..……..-$ -$ -$ -$ -$
Proceeds of capital leases…………………………………..385,579 - 50,769 267,420 1,036,682
Principal amount of new debt for advanced refunding……..14,007,250 7,153,773 - - -
Deposit to escrow fund for advance refunding and (14,007,250) (7,152,222)
repayment of loans………………………………………- - - - -
Operating transfers in ……………………………..………- - - 90,000 22,000
Operating transfers out ……………………………..…….(35,153,279) (10,391,179) (11,112,760) (9,326,453) (11,429,045)
Total other financing sources(uses) ……..………..(34,767,700)$ (10,389,628)$ (11,061,991)$ (8,969,033)$ (10,370,363)$
Excess of revenues and other sources over
expenditures and other uses ……………………………6,024,885$ 10,477,504$ 3,750,043$ 1,433,482$ 571,022$
Fund balances at beginning of year ………………………..55,974,199 45,496,695 41,746,652 40,313,170 39,742,148
Fund balance at end of year ……………………………….61,999,084$ 55,974,199$ 45,496,695$ 41,746,652$ 40,313,170$
Fund Balance:
As a percent of revenue ……………………………21.0%22.6%19.0%18.7%18.3%
As a percent of expenditures ………………………24.4%24.7%20.3%19.6%19.3%
Committed, Assigned and Unassigned Fund Balance:60,119,034$ 53,617,833$ 43,231,991$ 39,571,925$ 38,279,884$
As a percent of revenue ……………………………20.4%21.6%18.1%17.7%17.4%
As a percent of expenditures ………………………23.7%23.6%19.3%18.6%18.3%
Debt Service:15,401,668$ 14,877,978$ 14,139,010$ 14,745,795$ 14,688,810$
As a percent of revenue ……………………………5.2%6.0%5.9%6.6%6.7%
As a percent of expenditures ………………………6.1%6.6%6.3%6.9%7.0%
County Commissioners of Washington County
Statement of Revenues, Expenditures and Changes in Fund Balance
General Fund
Year Ended June 30
FINANCIAL INFORMATION
34 Washington County, Maryland
Anticipated Results for Fiscal Year 2022
Fiscal year 2022 will not end until June 30, 2022. However, the County anticipates ending the fiscal year with a surplus.
Expenditures are in line with the budget, while revenues are trending above budget. Income tax revenues through February 28,
2022, have been greater than anticipated. During the fiscal year 2022 budget process, the County Commissioners voted to reduce
the income tax rate from 3.2% to 3.0%, effective January 1, 2022. Distributions to the County based on the lower rate will not be
received until May and June 2022. Even with the reduction in the tax rate, income tax receipts are expected to exceed original
budgeted amounts by $16 million.
In addition to income tax, recordation tax is expected to come in over budget by approximately $6 million, due to several
large commercial sales.
Sources of Tax Revenue
Ad valorem property taxes, the County’s largest source of tax revenues, were 56% of total tax revenues for both fiscal
years 2020 and 2021. During the same period, income tax revenues as a percentage of total tax revenues were 40% in fiscal years
2020 and 2021. The following table presents the County’s tax revenues by source for each of the last five fiscal years.
Fiscal Year Local Property Local Income Other Local
Ended June 30 Taxes (1)Taxes Taxes (2)Total Taxes
Tax Revenues by Source
Local Property Taxes
Property valuations and assessments are determined by the Maryland State Department of Assessments and Taxation,
which maintains local offices in Baltimore City and each county. For State and County real property tax purposes, real property is
valued at full cash value (“value”). All property is physically inspected once every three years and any increase in value arising
from such inspection is phased in over the ensuing three taxable years in equal annual installments.
Commencing with the tax year beginning July 1, 2001, property tax rates are applied to 100% of the value of real property.
The County and municipal rates applicable to all personal property and operating real property of public utilities are 2.5 times the
property tax rate for real property.
Tangible personal property is generally assessed at cost, less depreciation for each year held to a minimum of 25%.
For most categories of personal property, depreciation is 10% per year subject to the minimum assessment of 25% of cost.
State law provides a credit against State, local and municipal real property taxes on certain owner-occupied residential
property. The tax credit for each tax year is computed by multiplying the State, local or municipal real property tax rate by the
amount by which (i) the current year’s assessment on residential property exceeds (ii) the homestead percentage multiplied by the
previous year’s assessment. The State homestead percentage is 110%. The counties and municipalities set their own respective
homestead percentage, but the credit percentage may not exceed 110% for any taxable year. The County adopted a homestead
percentage of 105% effective July 1, 2007.
The State also provides a tax credit based on the ability of homeowners to pay property taxes. The credit is calculated by
use of a scale, which indicates a maximum tax liability for various income levels. The tax credit processed for local property taxes
for Washington County for fiscal year 2020 was $1,403,647.
FINANCIAL INFORMATION
Washington County, Maryland 35
Pursuant to State law, the Board may grant a property tax credit against the County property tax imposed on, among other
categories of property, certain property owned by nonprofit civic associations and real property that is subject to the County’s
agricultural land preservation program. Manufacturing and commercial inventories of businesses are exempt from County tax.
Assessed Value, Tax Rates and Tax Levy
The following table sets forth the assessed value of all taxable property in Washington County for each of its five most
recent fiscal years and the County and State tax rate applicable in each of those years. Assessed value of tax-exempt properties
owned by federal, State and County governments, churches, schools, fraternal organizations, cemeteries, disabled veterans and the
blind, aggregating $,2,392,563,396 for the fiscal year ended June 30, 2020 (the most recent fiscal year for which such information
is available), is not included in the table. Under applicable law, there is no limit to the total tax levy for property taxes. In the
opinion of the County, the tax rate established by it for each fiscal year, when applied to the property subject thereto, is sufficient to
provide revenues to discharge the County’s obligations to pay principal and interest maturing on its outstanding general obligation
indebtedness in each fiscal year.
2021 2020 2019 2018 2017
Assessments and Tax Rates of all Property by Class
Fiscal Years Ended June 30
(Stated in Thousands)
There were no changes to the property tax rates for the County or the State in fiscal year 2021.
Tax Collection
County taxes are due and payable as of July 1. Delinquent taxes are collected after nine months of delinquency by tax
sales conducted by the County Treasurer, selling either real or personal property. Historically, the County has conducted tax sales
on an annual basis.
The following table sets forth certain pertinent information with respect to the County’s tax levies and tax collections for
each of its five most recent fiscal years.
Fiscal Year
Ending June 30 Taxes Levied Amount Percent Amount Percent
Taxes Receivable
as a Percentage
of Total Taxes
Collected
Taxes
Receivable
Taxes Collected in
Year of Levy
Total Taxes Collected
(Current and
Delinquent)
FINANCIAL INFORMATION
36 Washington County, Maryland
Principal Taxpayers
The 20 largest taxpayers in the County as of June 30, 2021, ranked by assessed value, are listed below.
Percentage of
Assessed Assessed
Value Value
Sub‑total $ 792,578,701 5.91%
Name of Taxpayer
Local Income Tax
Effective January 1, 2013, the personal State income tax rates for Maryland residents start at 2% on the first $1,000
of taxable income and increase up to a maximum of 5.75% on incomes exceeding $250,000 (or $300,000 for taxpayers filing
jointly, head of household or qualifying widow(ers)). Pursuant to State law, each county and Baltimore City must levy a local
income tax at the rate of at least 1.75%, but not more than 3.20%, of the State income tax liability of individuals domiciled in their
respective jurisdictions.
The County currently levies a local income tax on Washington County residents at the rate of 3.0%. The rate was decreased
from 3.2% to 3.0% effective January 1, 2022. The County does not levy a local income tax on corporations.
Other Local Taxes and Revenues
In addition to general property taxes and income taxes, the County levies and collects miscellaneous taxes, the largest of
which is the recordation tax on instruments conveying title to property and securing debt. Revenues from this tax in the fiscal year
ended June 30, 2021 were $11,001,009. The County also receives revenues from the amusement and admission tax and the trailer
tax. Another significant source of local revenue is generated from the issuance of building and other permits. Revenues from all
these sources, including recordation taxes, in the fiscal year ended June 30, 2021 were $12,708,479.
FINANCIAL INFORMATION
Washington County, Maryland 37
State and Federal Financial Assistance
State Payment of Public School Capital Construction Costs
Pursuant to State law, the State pays certain costs in excess of available federal funds for all public school construction
projects and capital improvements that have been approved by the State of Maryland Board of Public Works. The cost of acquiring
land is not a construction cost and therefore does not qualify for State funding.
The Board of Public Works is empowered to define by regulation what shall constitute an approved construction or capital
improvement cost and to adopt rules, regulations, and procedures for program administration. Program regulations limit the amount
of construction costs paid by the State by instituting a maximum State project allocation for each school construction project funded
through the program. Under the formula, the State’s share is computed by applying the applicable percentage to the eligible portion
of school construction costs. For the County, the maximum State share will equal 79% of approved construction costs.
State and Federal Grants
During the County’s fiscal year ended June 30, 2021, an aggregate of $28,965,361 in federal and State funds was received
by all County departments for use in operations. The largest single categorical source was a federal grant for $8,981,909, which
was a portion of the CARES Act grant. The County also received a total of $10,816,018 in federal and State funds for capital projects
in the fiscal year ended June 30, 2021. The County projects that $25,675,118 in federal and State funds will be received in fiscal
year 2022 for operations and $2,443,272 in federal and State funds will be received for capital projects.
During the fiscal year ended June 30, 2021, the Board of Education received $198,077,618 in State funds and $48,844,076
in federal funds for operating and food service expenses. In fiscal year 2022, the Board of Education anticipates receiving
$200,517,034 in State funds and $60,208,493 in federal funds for operations.
FINANCIAL INFORMATION
38 Washington County, Maryland
General Fund Balance Sheet
The following table indicates the County’s General Fund balance sheet for each of the five most recent fiscal years.
2021 2020 2019 2018 2017
ASSETS
Cash and short-term investments ……………………….61,770,766$ 1,104,928$ 618,872$ 415,192$ 627,517$
Investment in U.S. Government
Agency Securities ………………………………..10,240,627 80,085,369 97,052,684 99,211,242 101,443,510
Property taxes receivable (net) ………………………….761,411 1,832,574 498,411 651,241 348,751
Accounts receivable ……………………………………..1,527,097 2,138,048 1,139,143 862,246 422,410
Due from other governments ……………………………48,083,832 36,708,502 27,515,971 21,428,932 16,752,299
Inventories ……………………………………...……….832,151 875,346 776,816 730,400 763,099
Other assets …………………………………….………..1,069,543 1,438,055 1,921,103 1,754,650 1,421,211
Total assets ……………………………………..124,285,427$ 124,182,822$ 129,523,000$ 125,053,903$ 121,778,797$
LIABILITIES
Accounts payable ………………………………………10,353,395$ 3,853,942$ 1,442,745$ 1,791,101$ 1,366,313$
Accrued expenses ………………………………………2,417,599 2,024,401 1,743,490 1,907,822 4,563,855
Liabilities on unpaid claims ……………………….……1,693,567 1,481,126 2,211,941 2,030,677 1,523,730
Due to other funds ……………………………………..- 24,908,614 58,845,269 62,263,607 63,884,634
Unearned revenue ………………………………………15,233,612 9,556,542 533,242 604,215 382,729
Other liabilities ………………………………………….1,804,476 1,941,643 1,866,760 2,042,323 2,219,462
Total liabilities …………………………………..31,502,649$ 43,766,268$ 66,643,447$ 70,639,745$ 73,940,723$
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues…………………………………..30,783,694$ 24,442,355$ 17,382,858$ 12,667,506$ 7,524,904$
FUND EQUITY
Nonspendable ………………………………………….1,147,265$ 1,447,900$ 1,409,371$ 1,353,130$ 1,455,417$
Restricted ……………………………………………….720,318 908,466 855,333 821,597 577,869
Committed ………………………………………………60,119,034 53,532,582 43,212,749 39,554,672 38,263,353
Assigned ………………………………..………………12,467 25,250 19,242 17,253 16,531
Unassigned ..………………………………..……………- 60,001 - - -
Total fund equity ……………………...………61,999,084$ 55,974,199$ 45,496,695$ 41,746,652$ 40,313,170$
Total liabilities and fund equity ……………..124,285,427$ 124,182,822$ 129,523,000$ 125,053,903$ 121,778,797$
County Commissioners of Washington County
Balance Sheet
General Fund
As of June 30
FINANCIAL INFORMATION
Washington County, Maryland 39
Key Financial Statistics
General Fund Cash Reserves and Fund Balance
The following table illustrates the ratio of the General Fund fund balance as a percentage of total revenues for the last
five fiscal years. Also included in the table are the ratios of cash reserves as a percentage of General Fund revenues. It is the
intention of the County to maintain a minimum reserve level of 17 percent, which represents 60 days of working capital. It is
anticipated that the County will meet or exceed the 17 percent reserve level in fiscal year 2022.
Fiscal Year Revenues Fund Balance
Fund Balance as
Percentage of
Revenues
Reserves as
Percentage of
Revenues
DEBT AND CAPITAL REQUIREMENTS
40 Washington County, Maryland
V. Debt and Capital Requirements
Debt Management Policy
The County adheres to its Debt Management Policy (the “DM Policy”), which sets forth the parameters for issuing new
debt and managing outstanding debt. The DM Policy’s primary objective is to establish conditions for the use of debt and create
procedures that minimize debt service and issuance costs, retain high credit ratings, and maintain full and complete financial
disclosure and reporting. The DM Policy addresses such matters as: use of debt financing, capital planning, debt affordability
measures, types of debt, and method of sale. Adherence to the DM Policy helps to ensure that the County maintains a sound debt
position and that credit quality is protected.
General Obligation and Revenue Bonds
The County may only issue general obligation and revenue bonds under authority conferred by the Maryland General
Assembly. No referendum is required.
The County is authorized to issue short-term tax anticipation notes to meet any estimated current fiscal year cumulative
cash flow deficit. Such notes must be repaid within six months of their date of issue. The County has no short-term notes
outstanding at this time. As of June 1, 1999, the County may use a line-of-credit for $5,000,000 to meet a temporary cash flow
deficit. The County has not used the line-of-credit as of the date of this Official Statement.
The County may issue economic development revenue bonds under State law, which provides that such bonds shall not
constitute an indebtedness or charge against the general credit or taxing power of the County. Pursuant to the County Code, the
County may authorize long-term debt in the form of an installment purchase contract to pay for development rights or make certain
other payments in connection with the Agricultural Land Preservation Program.
The County may issue general obligation bonds in an amount up to $70,000,000 pursuant to the authority of Chapter 99.
The original aggregate principal amount of bonds issued pursuant to Chapter 99 at June 30, 2021 was $20,359,904. The unused
authorization available under Chapter 99 prior to the issuance of the Bonds is $49,640,096.
The County is authorized by State law to issue its bonds for the purpose of refunding any of its outstanding bonds,
including the payment of any redemption premium and interest accrued to the date of redemption, purchase or maturity of the
bonds being refunded.
As part of the annual budget process, an annual debt affordability analysis is prepared by the Office of Budget and
Finance. It is an effective tool for debt planning and management.
The Solid Waste operation was classified as a fund separate from the Highway Fund in 1996. It has paid for debt from
generated revenues since that time. In 2002, the County reclassified the Solid Waste Fund as an enterprise fund. The debt paid
out of revenues generated by that fund is considered self-supporting debt. In 2011, the County implemented GASB Statement No.
54 of the Governmental Accounting Standards Board, Fund Balance Reporting and Governmental Fund Type Definitions. Based
on this GASB Statement, the Highway Fund did not meet the criteria of a special revenue fund and was consolidated into the
General Fund.
The following table sets forth the amount of the County’s general obligation bonded debt issued and outstanding as of
June 30, 2021, exclusive of certain water and sewer bonds (see “Water and Sewer Bonds” herein). Outstanding principal amounts
have not been adjusted for discounts or premiums.
DEBT AND CAPITAL REQUIREMENTS
Washington County, Maryland 41
Statement of General Obligation Bonded Debt
Issued and Outstanding*
As of June 30, 2021
Amount Outstanding
Date of Amount General Solid Airport
Issue Issued Fund Waste Fund Fund Total
Public Improvement Refunding Bonds……May 2010 13,790,000 411,965 3,035 - 415,000 (15)
Public Improvement Bonds…………………..May 2011 14,170,000 521,608 153,392 - 675,000 (16)
Public Improvement Bonds…………………..May 2012 12,068,100 (1) 1,148,049 - - 1,148,049
Water and Sewer Bonds
Pursuant to the Water and Sewer Act, the County is authorized to issue bonds secured by the full faith and credit and
unlimited taxing power of the County to provide funds for the design, construction, establishment, purchase and condemnation of
water systems, sewerage systems and surface water drainage systems in the service areas created by the County. To the extent
that the special assessments and other charges imposed by the County with respect to a certain project are insufficient to pay that
portion of the principal of and interest on any such bonds attributable to the cost of a project, the County is obligated to levy and
to collect a tax upon all property subject to unlimited County taxation within the corporate limits of Washington County in rate
and amount sufficient to provide funds as may be necessary to provide for the payment of such portion of the principal and interest
as it becomes due.
By State law, the total bonded indebtedness of the County for these purposes, including bonded indebtedness previously
issued by the former Washington County Sanitary District, may not exceed 25% of the assessed value of all property in Washington
County subject to unlimited County taxation. At the time the State law was enacted the assessed value was equal to 40% of market
value. Pursuant to legislation passed by the Maryland General Assembly, real property assessment law was altered to reflect full
market value assessments. Therefore, to maintain the intent of the State law, 40% of the stated 25% of assessed value, or 10%, is
used to calculate the legal debt margin for water and sewer debt.
DEBT AND CAPITAL REQUIREMENTS
42 Washington County, Maryland
The following table sets forth the amount of the County’s water and sewer debt issued and outstanding as of June 30, 2021.
Outstanding amounts have not been adjusted for discounts or premiums. Debt subject to the Water and Sewer Act is referred to as
“Water and Sewer” debt herein.
Date of Issue Issued Outstanding
Public Improvement Bonds………………………….May 2012 5,696,900 (1) 541,951
Public Improvement Bonds………………………….May 2015 3,460,000 (2) 2,835,589
Refunding Bonds……………………………………..May 2015 821,530 (3) 632,054
Public Improvement Bonds………………………….May 2016 8,532,000 (4) 7,281,247
Refunding Bonds……………………………………..May 2016 2,137,010 (5) 1,884,999
Public Improvement Bonds………………………….May 2017 638,000 (6) 573,413
Public Improvement Bonds………………………….May 2018 1,633,000 (7) 1,528,154
Public Improvement Bonds………………………….May 2019 1,055,000 (8) 1,022,502
Public Improvement Bonds………………………….June 2020 5,090,000 (9) 5,090,000
Refunding Bonds……………………………………..June 2020 996,070 (10) 996,070
Statement of Water and Sewer Bonded Debt
Issued and Outstanding
As of June 30, 2021
Schedule of Legal Debt Margin
As of June 30, 2021
Water and Sewer Bonded Debt
DEBT AND CAPITAL REQUIREMENTS
Washington County, Maryland 43
Capital Lease Obligations and Other Contracts
The County has entered into several five-year capital lease agreements. The outstanding balance of these obligations as
of June 30, 2021, was $1,759,853. The lease agreements are primarily for heavy-duty equipment and vehicles. The leases have
been recorded as capital leases in the appropriate County funds in the financial statements. GASB Statement No. 87,
implementing new lease accounting standards, will be effective with the fiscal year ending June 30, 2022, with respect to the
County.
In addition to contracts for goods and services incurred in the ordinary course of business of the County, the County is
party to numerous other contracts, primarily with engineers, architects and contractors relating to capital projects. Funds necessary
to meet the County’s obligations in respect to such contracts have been appropriated in the related fund.
Special Obligation Bonds
Pursuant to State law, Washington County may create special taxing districts, levy ad valorem and/or special taxes, and
borrow money by issuing and selling special taxing district revenue bonds for the purpose of financing or refinancing the cost of the
design, construction, establishment, extension, alteration or acquisition of adequate storm drainage systems, sewers, water systems,
roads, bridges, culverts, tunnels, sidewalks, lighting, parking, parks and recreation facilities, libraries, schools, transit facilities, solid
waste facilities and other infrastructure improvements, whether situated within or outside the special taxing district, and including
infrastructure improvements located in or supporting a transit-oriented development, a sustainable community or a State hospital
development (within the meaning of State law). Special taxing district bonds shall be payable solely from the ad valorem or special
taxes levied on the property within a special taxing district and neither the bonds, nor any interest thereon, shall ever constitute an
indebtedness or a charge against the general credit or taxing powers of the County.
The County created one special taxing district and issued in June 1998, November 1998 and May 2000 its $3,100,000,
$1,517,000 and $2,454,000 Washington County, Maryland Special Obligation Bonds (Barkdoll Tract Special Taxing District)
Series 1998, Series 1998 B and Series 2000, respectively.
Pursuant to State law, Washington County may also establish a contiguous area as a development district, and borrow
money by issuing and selling tax increment financing revenue bonds (“TIF bonds”) for the purpose of financing or refinancing the
cost of acquiring property interests, site removal, surveys and studies, relocation of businesses or residents, installation of utilities,
construction of parks and playgrounds, other needed improvements including roads to, from or in the development district, parking
and lighting, construction or rehabilitation of buildings for a governmental purpose or use, reserves or capitalized interest, bond
issuance costs or payment of existing indebtedness for such purposes. The list of projects to which TIF bonds may be applied is
expanded for RISE zones and sustainable communities (within the meaning of State law). In addition, Washington County may
apply TIF bond proceeds for demolition or site removal on privately owned property; pedestrian or vehicular bridges or overpasses
(including railroad crossings and related improvements); or parking lots, facilities or structures that are publicly or privately owned
or available for public or private use. TIF bonds are payable from real property tax revenues derived from the increase in assessed
value of real property located within a development district over a base assessment established in accordance with State law and
any other revenues pledged by the County as permitted by State law. The County may determine to pledge its full faith and credit
and unlimited taxing power to the payment of TIF bonds; if it does not do so, the TIF bonds are payable solely from incremental
tax revenues derived from real properties located within a development district and any other revenues that the County determines
to pledge to such TIF bonds. Under State law, the County may also pledge incremental County tax revenues and other revenues to
support TIF bonds issued for qualifying purposes by a municipality within the County or the Maryland Economic Development
Corporation.
Between fall 2016 and early 2017, the County established two separate development districts: (i) the Conococheague
Development District, consisting of approximately 137 acres, and (ii) the Cascade Development District, consisting of most of the
acreage comprising the former Fort Ritchie Military Reservation. To date, the County has not passed a bond ordinance authorizing
the issuance of TIF bonds for either established development district, and the designation of the Conococheague Development
District expired on December 31, 2018 by its terms due to no TIF bonds having been issued with respect to such development
district. The designation of the Cascade Development District will expire on December 31, 2022 if no TIF bonds have been issued
with respect to such development district, unless such sunset date is extended by resolution of the Board. Until any TIF bonds are
issued with respect to the Cascade Development District, the County may use incremental tax revenues, if any, derived from
properties within such development district for any legal purpose.
DEBT AND CAPITAL REQUIREMENTS
44 Washington County, Maryland
Bonded Indebtedness of Incorporated Municipalities
Eight of the nine incorporated municipalities of Washington County have outstanding indebtedness in the aggregate
principal amount of $71,324,224 as of June 30, 2021. The County is not obligated to pay such debt or the interest thereon and
neither the faith and credit nor taxing power of the County is pledged to the payment of principal or interest on such indebtedness.
Amount
5,528,261$
434,997
1,117,239
56,911,953
1,173,691
1,682,189
1,616,483
2,859,411
Towns
County Commissioners of Washington County
Outstanding Underlying Debt
As of June 30, 2021
Direct and Underlying Debt
The following schedules present the County’s bonded debt outstanding as of June 30, 2021, and the ratios of such debt to
the County’s population and real and personal property assessed market values.
County Commissioners of Washington County
Direct and Overall Bonded Debt
As of June 30, 2021
Direct Debt - Tax-Supported:
General Government Debt (1)…………………………………..143,879,998$
Direct Debt - Self-Supported:
Solid Waste ….…………………………………………………..10,527,610
Water and Sewer ….…………………………………………….30,559,305
Airport ….………………………………………………………..275,660
Total Direct Debt…………………………………………………….185,242,573
Underlying Debt……………………………………………………..71,324,224
Overall Bonded Debt………………………………………………..256,566,797$
DEBT AND CAPITAL REQUIREMENTS
Washington County, Maryland 45
County Commissioners of Washington County
Debt Per Capita and Ratio of Debt to Assessed Values
As of June 30, 2021
The following table presents the County’s direct tax-supported debt per capita and ratios of direct tax-supported debt to
assessed value for the last five fiscal years.
Fiscal Year Estimated Assessed Per
Direct Tax-Supported
Debt as a Percentage
Ended June 30 Population Value (000)Capita of Assessed Value
Direct
Tax-Supported
Debt (000)
Debt Service Requirements on County Debt
The following tables set forth the debt service requirements for the County’s general obligation bonded debt as of June 30,
2021, adjusted to reflect issuance of the Bonds, and the rapidity of repayment for the County’s direct tax-supported debt.
DEBT AND CAPITAL REQUIREMENTS
46 Washington County, Maryland
DEBT AND CAPITAL REQUIREMENTS
Washington County, Maryland 47
DEBT AND CAPITAL REQUIREMENTS
48 Washington County, Maryland
Number Principal Principal
of Years Amount Percent Amount Percent
5 53,043,185$ 36.87
10 97,071,985 67.47
15 129,008,022 89.66
20 143,191,025 99.52
25 143,879,998 100.00
Source: Washington County Department of Budget and Finance
(1) Bonds refers to the Bonds that are the subject of this Official Statement.
Rapidity of Direct Tax-Supported Debt Principal Payment
June 30, 2021
Before Issuance of Bonds After Issuance of Bonds
Adjusted to Reflect Issuance of the Bonds (1)
Anticipated Future Financing
The County currently anticipates issuing additional general obligation bonds for approximately $15.1 million in fiscal year
2023, $13.4 million in fiscal year 2024, and $17.0 million in fiscal year 2025. These anticipated debt issuance amounts are for
planning purposes and subject to change as part of the annual budgeting process.
Capital Requirements
Capital Improvement Program Summary
The County has established the CIP for establishing a capital budget to forecast future needs and set priorities. It is
reviewed and updated during the annual budget process. The objectives of the CIP are to: (1) provide a means for coordinating
and consolidating into one document all departmental and agency requests for capital funds; (2) establish a system by which
the capital projects of the County can be examined and given priorities according to their relative importance; (3) provide a
budgetary tool for the implementation of the Comprehensive Plan elements; (4) forecast future capital demands on local current
revenue; and (5) allow projects to be scheduled over a long-term period, thereby providing adequate planning for both financial
resources and project implementation. By applying the guidelines of the County’s DM Policy and the annual debt affordability
analysis, the Board is able to adopt a capital budget that provides maximum benefits from available public funds and assures
sound fiscal planning. See “FINANCIAL INFORMATION – Budget Process and Schedule” herein.
MISCELLANEOUS
Washington County, Maryland 49
VI. Miscellaneous
Litigation
The County is currently a defendant in litigation matters involving various matters and claims. Many of these are covered
by insurance, subject to a deductible. As most of these disputes involve unliquidated damages, it is not possible to provide a
reliable total of damages for which the County may become liable. In the opinion of the County Attorney, all such matters now
pending or threatened are, collectively, unlikely to result in total liabilities that would have a material effect on the financial
condition of the County.
Potential Impact of COVID-19 Pandemic on the County
In response to the initial occurrence of the COVID-19 pandemic, the Governor of the State of Maryland proclaimed a
state of emergency and catastrophic health emergency within the State of Maryland on March 5, 2020 that was renewed several
times throughout calendar years 2020 and 2021. On July 1, 2021, the Governor of Maryland rescinded all COVID-19 related executive
orders.
The County’s principal source of revenue is local taxes, which constituted 89.6% of total General Fund operating
revenue for fiscal year 2021: 45.4% from real property taxes, 40.4% from local income taxes and 3.8% from other local taxes.
See “GENERAL FUND REVENUES AND EXPENDITURES” for a further discussion of the County’s revenues and revenue
sources. Although the County does not currently anticipate that the levy and collection of property taxes in fiscal year 2022
will be materially affected, the potential impact of the COVID-19 pandemic on the current fiscal year’s results cannot be fully
determined at this time. The County has had significant increases in income tax collection in fiscal years 2021 and 2022. While
the County does not expect a significant decline in income tax collection, there is no assurance, that the County will not
experience a decline in income tax collected in the upcoming fiscal years, however, the extent cannot be fully determined at
this time. In future fiscal years, the County may experience a decline in real estate tax revenues related mainly to commercial
properties since their value is assessed using an income method by the State. In addition, structural changes of how businesses
conduct their operations may shift from on premise commercial buildings to more of a remote style framework. The impact of
this on the County revenues cannot be fully determined at this time.
The COVID-19 pandemic’s long-term impact on the State and local economy and on County’s financial performance
cannot be currently determined. Further, the ongoing COVID-19 pandemic may cause additional economic and health
challenges that cannot be anticipated or quantified at this time. The County has the ability to adjust spending on certain capital
projects and operating costs, and it maintains a fund balance in its General Fund that the County may utilize to respond to such
challenges.
Federal Funding
The County received $13.2 million in CARES Act funding in May 2020, which was used by the County to cover
certain costs or distributed to qualifying recipients through a variety of County programs. Together We Rise, the largest
program recipient, was a business stabilization effort that provided approximately $8.5 million to over 800 local businesses.
The County also provided funds to various local non-profit organizations in the cumulative amount of $2.5 million. An
additional $1.3 million provided for County-related information technology enhancements to assist teleworking activities to
serve the public. Approximately $400,000 was provided as reimbursement to the County and multiple municipalities for
pandemic related costs. The remaining approximately $500,000 was provided to the Convention and Visitors Bureau for
tourism revitalization efforts.
The American Rescue Plan Act allocated $60.5 million to multiple recipients in Washington County, with $31.2
million being allocated to municipalities located in Washington County and $29.3 million being retained by the County. The
funding can be used to respond to or mitigate the COVID-19 health emergency or its negative economic impacts, including
assistance to households, small businesses, nonprofits, and aid for tourism, travel and hospitality; to provide essential workers
with premium pay; to cover revenue loss incurred as a result of the COVID-19 emergency; or to make necessary investments
in water, sewer, or broadband infrastructure. The County has received $14.7 million to date and anticipates receiving the
remaining disbursement in June 2022. The County has spent a portion of the $29.3 million on premium pay for essential
workers. The remaining funds of such total amount have been allocated to various projects that include broadband expansion,
clean water infrastructure, aid for tourism, and assistance for small business and nonprofits. Adjustments being made to the
fiscal year 2022 budget are in the amount of $15.7 million, while the remaining $13.6 million is budgeted in the fiscal year
2023 Capital Improvement Plan.
MISCELLANEOUS
50 Washington County, Maryland
Ratings
Fitch Ratings, Moody’s Investors Service, Inc., and S&P Global Ratings have given the Bonds the ratings indicated on
the cover page of this Official Statement. An explanation of the significance of any of such ratings may be obtained only from
the agency furnishing the rating. The County furnished to such rating agencies the information contained in a preliminary form of
this Official Statement and other materials and information pertaining to the Bonds. Generally, rating agencies base their ratings on
such materials and information, as well as their own investigations, studies, and assumptions. The ratings given the Bonds may be
changed at any time and no assurance can be given that they will not be revised downward or withdrawn by one or more of such
rating agencies if, in the judgment of any such rating agencies, circumstances should warrant such action. Any such downward
revision or withdrawal of any of such ratings may have an adverse effect on market prices for the Bonds.
Continuing Disclosure Undertaking
In order to enable participating underwriters, as defined in Rule 15c2-12 of the Securities and Exchange Commission
(“Rule 15c2-12”) to comply with the requirements of paragraph (b)(5) of Rule 15c2-12, the County will execute and deliver a
continuing disclosure agreement (the “Continuing Disclosure Agreement”) on or before the date of issuance and delivery of the
Bonds, the proposed form of which is attached to this Official Statement as Appendix D. In the Continuing Disclosure Agreement
the County will covenant for the benefit of the registered owners of Beneficial Owners of the Bonds to provide its audited financial
statements and certain specified annual financial information and operating data relating to the County by not later than 240 days
after the end of each fiscal year, commencing with the fiscal year ending June 30, 2022, and to provide notice of the occurrence of
certain enumerated events, for as long as the Bonds remain outstanding or the County is an obligated person with respect to the
Bonds. The audited financial statements, annual financial information and operating data, and notices of the occurrence of the
enumerated events, if any, will be posted byt the County on the Electronic Municipal Market Access system (“EMMA”) maintained
by the Municipal Securities Rulemaking Board and/or filed with any other repository then required by Rule 15c2-12. As of the date
of the Official Statement, such information is required to be posted only to EMMA.
Potential purchasers of the Bonds should note that the definition of Listed Events contained in the proposed form of the
Continuing Disclosure Agreement attached to this Official Statement as Appendix D is intended to completely restate the events
specified in Rule 15c2-12. It is noted that certain of the 16 Listed Events set forth in Section 4(a) of the proposed form of the
Continuing Disclosure Agreement are expected to have no applicability to the Bonds, such as the possibility of unscheduled draws
on debt service reserves reflecting financial difficulties, unscheduled draws on credit enhancements reflecting financial difficulties,
substitution of credit or liquidity providers or their failure to perform, and release, substitution or sale of property securing the Bonds.
The County has historically filed its annual audited financial statements in satisfaction of its obligation to provide any
annual financial information and operating data required by continuing disclosure undertakings executed by the County with
respect to prior debt issues in accordance with Rule 15c2-12, based on the County’s understanding that such audited financial
statements filings satisfied the County’s continuing disclosure undertaking obligations with respect to identified annual
financial information and operating data. Such annual audited financial statement filings have been made by the County on a
timely basis in the past five years. However, it was brought to the attention of the County that, with respect to certain County
general obligation bonds issued prior to calendar year 2013, the description of the annual financial information and operating
data to be provided by the County under its continuing disclosure undertakings with respect to such earlier issues could be
construed to require more information than has been contained in the County’s filed annual audited financial statements.
Accordingly, in September 2020, the County filed notice of its apparent failure to provide certain information with respect to
fiscal years 2015-2019, inclusive, and made a supplemental filing with respect to certain debt information for fiscal years 2015-
2019, inclusive, for the affected issues that remained outstanding at such time. Except as described in this paragraph (to the
extent the foregoing constitutes a material failure), the County has not failed in the past five years to comply, in all material
respects, with any previous continuing disclosure undertaking entered into by the County pursuant to Rule 15c2-12.
Sale at Competitive Bidding
The Bonds were offered by the County at competitive bidding on May 24, 2022, in accordance with the official Notice
of Sale (a copy of which is attached as Appendix C, as such Notice of Sale may be modified in accordance with its terms). The
Bonds were awarded to _______________________. The interest rates shown on the cover page of this Official Statement are
the interest rates resulting from the award of the Bonds at the competitive bidding. The prices or yields shown on the cover page of
this Official Statement were furnished by the successful bidder for the Bonds and not by the County. All other information
concerning the nature and terms of any re-offering should be obtained from the successful bidder for the Bonds and not from the
County.
MISCELLANEOUS
Washington County, Maryland 51
Legal Matters
All legal matters incident to the authorization, issuance and sale of the Bonds are subject to the approval of Funk &
Bolton, P.A., Baltimore, Maryland, Bond Counsel. Delivery of the Bonds is conditioned upon delivery by Bond Counsel of an
opinion relating to the Bonds substantially in the form set forth in Appendix B to this Official Statement. The certified text of the
approving legal opinion for the Bonds will be printed on or attached to the Bonds.
Bond Counsel has not been engaged, nor has it undertaken, to audit, authenticate or otherwise verify the information
set forth in this Official Statement regarding the County or other referenced governmental entities, or any related information
regarding the County or other referenced governmental entities, with respect to the accuracy and completeness of such
information, and it will not express any opinions with respect thereto or with respect to any specific sections of this Official
Statement.
Independent Auditors
The financial statements as of June 30, 2021, and for the year then ended, included in Appendix A to this Official
Statement, have been audited by SB & Company, LLC, independent auditors, as stated in their report appearing herein, and should
be read in their entirety. Such financial statements have been included in reliance upon the report of SB & Company, LLC. Such
report speaks only as of its date.
SB & Company, LLC the independent auditor, has not been engaged to perform and has not performed, since the date of
its report included in Appendix A to this Official Statement, any procedures on the financial statements addressed in that report.
SB & Company, LLC also has not performed any procedures relating to this Official Statement.
Financial Advisor
Davenport & Company LLC, Towson, Maryland (the “Financial Advisor”) is a registered municipal advisor with the
Municipal Securities Rulemaking Board and serves as financial advisor in connection with the issuance of the Bonds and other
matters related to the County’s finances. The Financial Advisor has not been engaged, nor has it undertaken, to audit, authenticate
or otherwise verify the information set forth in this Official Statement, or any other related information available to the County, with
respect to accuracy and completeness of disclosure of such information. The Financial Advisor makes no guaranty, warranty or
other representation respecting the accuracy and completeness of this Official Statement or any other matter related to the Official
Statement.
This Official Statement has been approved and authorized by the County for use in connection with the sale of the Bonds.
COUNTY COMMISSIONERS OF
WASHINGTON COUNTY
By:
Jeffrey A. Cline, President
(This page has been left blank intentionally.)
Appendix A
General Purpose Financial Statements
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Financial Statements and Supplemental Schedules
Together with Reports of Independent Public Accountants
For the Year Ended June 30, 2021
JUNE 30, 2021
CONTENTS
1
4
Statement of Net Position 28
Statement of Activities 29
Balance Sheet – Governmental Funds 31
Reconciliation of Balance Sheet of Governmental Funds to Statement of Net Position 32
Statement of Revenue, Expenditures, and Changes in Fund Balances – Governmental Funds 33
Reconciliation of Statement of Revenue, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities 34
Statement of Net Position – Proprietary Funds 35
Statement of Revenue, Expenses, and Changes in Net Position – Proprietary Funds 36
Statement of Cash Flows – Proprietary Funds 37
Statement of Net Position – Fiduciary Funds 38
Statement of Changes in Net Position – Fiduciary Funds 39
Notes to the Financial Statements 40
Schedule of Changes in Net OPEB Liability and Related Ratios
Schedule of OPEB Trust Fund Employer Contributions
Schedule of Changes in Pension Fund Net Pension Liability and Related Ratios –
General Employees’ Pension Fund
Schedule of General Employees’ Pension Fund Employer Contributions
Schedule of Changes in Pension Fund Net Pension Liability and Related Ratios –
Volunteer Length of Service Award Fund
115
116
117
118
COMBINING AND INDIVIDUAL FUND STATEMENTS
BUDGET AND ACTUAL SCHEDULE
OTHER SCHEDULE
10200 Grand Central Avenue • Suite 250 • Owings Mills • Maryland 21117 • P 410.584.0060 • F 410.584.0061
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
County Commissioners of Washington County
Hagerstown, Maryland
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component unit, each major fund, and
the aggregate remaining fund information of the County Commissioners of Washington County,
Maryland (the County) as of and for the year ended June 30, 2021, and the related notes to the
financial statements, which collectively comprise the County’s basic financial statements as
listed in the table of contents.
Management’s Responsibility for the Financial Statements
The County’s management is responsible for the preparation and fair presentation of these
financial statements in accordance with accounting principles generally accepted in the United
States of America; this includes the design, implementation, and maintenance of internal controls
relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these basic financial statements based on our audit.
We did not audit the basic financial statements of the Board of Education of Washington County
(the Board). Those basic financial statements were audited by other auditors whose report
thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included
for the component unit, is based solely on the report of the other auditors. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the basic financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the basic financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the basic financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal controls relevant to the entity’s preparation and fair presentation of the basic financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the basic financial statements.
2
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, based on our audit and the report of the other auditors, the basic financial
statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, the aggregate discretely
presented component unit, each major fund, and the aggregate remaining fund information, of
the County Commissioners of Washington County, Maryland, as of June 30, 2021, and the
respective changes in its financial position and, where applicable, cash flows thereof for the year
then ended in accordance with accounting principles generally accepted in the United States of
America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, schedule of changes in net OPEB liability and related
ratios, schedule of OPEB trust fund employer contributions, schedules of changes in pension fund
net pension liability and related ratios for the General Employees’ Pension Fund and Volunteer
Length of Service Award Fund, sch edules of employer contributions for the General E mployees’
Pension Fund and the Volunteer Length of Service Award F und, and the budget and actual
schedule be presented to supplement the basic financial statements. Such information, although not
a part of the basic financial statements , is required by the Governmental Accounting Standards
Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements . We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide
us with sufficient evidence to express an opinion or provide any assurance.
3
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County’s basic financial statements. The accompanying combining and
individual fund statements and local management board schedule of revenue and expenditures
regulatory basis, a s listed in the accompanying table of contents are presented for purposes of
additional analysis and are not a required part of the basic financial statements are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
The accompanying combining and individual fund statements and local management board
schedules are the responsibility of management and were derived from and relate directly to the
underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the accompanying combining and individual fund statements and local
management board schedule are fairly stated in all material respects in relation to the basic
financial statements as a whole.
Owings Mills, Maryland
October 27, 2021
Other Information
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ANAGEMENT S ISCUSSION AND NALYSIS
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Washington County Government’s (the “County”) discussion and analysis is designed to: (a)
assist the reader in focusing on significant financial issues, (b) provide an overview of the
County’s financial activity, (c) identify changes in the County’s financial position (its ability to
address the next and subsequent years’ challenges), (d) identify any material deviations from the
financial plan (the approved budget), and (e) identify individual fund issues or concerns.
Since the Management’s Discussion and Analysis (MD&A) is designed to focus on the current
year’s activities, resulting changes and currently known facts please read it in conjunction with
the County’s financial statements presented herein.
This discussion and analysis is intended to serve as an introduction to the County’s basic
financial statements. The County’s basic financial statements are comprised of three
components: 1) government-wide financial statements, 2) fund financial statements, and 3)
notes to the financial statements. This report also contains 4) supplementary information in
addition to the basic financial statements themselves.
1)Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad
overview of the County’s finances, in a manner similar to a private business. The
government-wide financial statements include a statement of net position and a statement
of activities.
The statement of net position presents information on the County’s entire assets and
liabilities, with the difference between the two reported as net position. Over time,
increases and decreases in net position may serve as a useful indicator of whether the
financial position of the County is improving or deteriorating.
The statement of activities presents information showing how the government’s net
position changed during the most recent fiscal year. All changes in net position are
reported as soon as the underlying event giving rise to the change occurs, regardless
of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused vacation leave).
Both of these financial statements distinguish functions of the County that are principally
supported by taxes and intergovernmental revenues (governmental activities) and activities
from other functions that are intended to recover all or a significant portion of their costs
through user fees and charges (business-type activities).
The governmental activities of the County include education, general government,
parks and recreation, public safety, courts, health and social services, and highway
maintenance.
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ANAGEMENT S ISCUSSION AND NALYSIS
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The business-type activities of the County include airport, public golf course, public
transit, solid waste, and water quality operations.
The government-wide financial statements include not only the County (known as the
primary government), but also include the Washington County Board of Education as a
legally separate component unit and is reported separately from financial information
presented for the primary government itself.
The government-wide financial statements can be found on pages 28-30 of this report.
2)Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The County, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the County can be divided into
categories: governmental, proprietary, or fiduciary.
Governmental Funds. Governmental funds are used to account for the same
functions reported as governmental activities in the government-wide financial
statements. However, unlike the government-wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating a government’s near-term
financing requirements.
Because the focus of governmental funds is narrower than that of the government-
wide financial statements, it is useful to compare the information presented for
governmental funds with similar information presented for governmental activities in
the government-wide financial statements. By doing so, readers may better
understand the long-term impact of the government’s near-term financing decisions.
Both the governmental fund balance sheet and the governmental fund statement of
revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The County maintains 11 individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances for the General,
Capital Improvement, Grant Management, Cascade Town Centre, Inmate Welfare,
Contraband, Agricultural Education, Gaming, Land Preservation, HEPMPO, and
Hotel Rental Tax funds.
The County adopts an annual appropriated budget for all of its governmental and
proprietary fund budgets.
6
ANAGEMENT S ISCUSSION AND NALYSIS
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The basic governmental fund financial statements can be found on pages 31-34 of this
report.
Proprietary Funds. When the County charges customers for a service it provides,
whether to outside customers or to other units of government, these services are
generally reported in proprietary funds. Proprietary funds are reported in the same
way that all activities are reported in the statement of net position and the statement
of Revenue, Expenses and Changes in Net Position. Proprietary funds are comprised
of two types: 1) Enterprise funds and 2) Internal service funds. The County uses
enterprise funds to account for its airport, public golf course, public transit, solid
waste, and water quality operations. Internal service funds are used to report an
activity that provides supplies and services for the government’s other programs and
activities. The County does not utilize an internal service fund.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail.
The basic proprietary fund financial statements can be found on pages 35-37 of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the
benefit of parties outside the government. Fiduciary funds are not reflected in the
government-wide financial statement because the resources of those funds are not
available to support the County’s own programs. The accounting used for fiduciary
funds is similar to proprietary funds.
The basic fiduciary fund financial statements can be found on pages 38-39 of this report.
3)Notes to the Financial Statements
The notes to the financial statements provide additional information that is essential to a
full understanding of the data provided in the government-wide and fund financial
statements. The notes to the financial statements can be found on pages 40-109 of this
report.
4) Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the County’s progress in
funding its obligation to provide pension benefits to its employees and includes budgetary
comparison schedules for the general fund.
In addition to this MD&A, required supplementary information can be found on page 114-119
of this report.
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ANAGEMENT S ISCUSSION AND NALYSIS
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As noted earlier, net position may serve over time as a useful indicator of a government’s
financial position. In the case of the County, assets and deferred outflows of resources exceeded
liabilities and deferred inflows of resources by $602.0 million as of the close of the most recent
fiscal year.
Washington County, Maryland
Net Position
(Government-Wide)
Governmental Activities Business-type Activities Total Percent
2021 2020 2021 2020 2021 2020
Current and other assets
Capital assets
Total Assets 706,368,462 633,030,991 298,714,140 292,386,424 1,005,082,602 925,417,415 8.61%
Deferred Outflow of Resources 3,838,347 15,812,977 516,140 414,744 4,354,487 16,227,721 (73.17%)
Current and other liabilities
Long-term liabilities
Total Liabilities 282,294,579 305,554,759 66,697,864 68,587,897 348,992,443 374,142,656 (6.72%)
Deferred Inflow of Resources 37,045,725 14,155,635 21,446,163 22,246,165 58,491,888 36,401,800 60.68%
Net Investment in Capital Assets 360,482,566 356,047,102 217,849,212 213,907,220 578,331,778 569,954,322 1.47%
Restricted Net Assets
Unrestricted Net Assets
Total Net Position
The largest portion of the County’s net position reflects its investments in capital assets (e.g.,
land, roads, and bridges); less related outstanding debt used to acquire those assets in the amount
of $578.3 million. The County uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the County’s
investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities. An additional portion of the County’s net
position, $39.3 million, represents resources that are subject to external restrictions on how they
may be used. The remaining portion is unrestricted net assets of ($15.7) million.
Unrestricted net assets in governmental activities have been reduced by $44.5 million in long-
term debt, resulting in unrestricted net assets of ($1.0) million. This long-term debt was incurred
8
ANAGEMENT S ISCUSSION AND NALYSIS
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by the County’s general fund for the purpose of capital asset acquisition for the Board of
Education of $39.5 million and Hagerstown Community College of $5.0 million. The capital
assets acquired with these bonds are not reflected in the County’s primary government financial
statements.
Washington County, Maryland
Change in Net Position
(Government-Wide)
Governmental Activities Business-type Activities Total
2021 2020 2021 2020 2021 2020
Program Revenues:
Charges for Services $8,261,913 $7,369,104 $25,782,767 $23,947,279 $34,044,680 $31,316,383
Operating Grants and Contributions 27,673,612 10,523,916 3,480,751 2,007,634 31,154,363 12,531,550
Capital Grants and Contributions 8,459,831 13,020,604 11,839,311 6,041,641 20,299,142 19,062,245
General Revenues:
Property Taxes 133,490,152 130,183,505 - - 133,490,152 130,183,505
Local Taxes 146,674,462 113,496,232 - - 146,674,462 113,496,232
Other 4,428,418 4,229,820 123,470 372,533 4,551,888 4,602,353
Total Revenues 328,988,388 278,823,181 41,226,299 32,369,087 370,214,687 311,192,268
Program Expenses:
General Government 28,575,774 38,552,091 - - 28,575,774 38,552,091
Public Safety 61,670,985 63,008,479 - - 61,670,985 63,008,479
Health 2,339,270 2,339,270 - - 2,339,270 2,339,270
Social Services 435,560 435,560 - - 435,560 435,560
Education 115,766,280 120,725,832 - - 115,766,280 120,725,832
Parks and Recreation 7,235,708 7,356,435 - - 7,235,708 7,356,435
Natural Resources 3,202,083 1,674,571 - - 3,202,083 1,674,571
Community Promotion 21,299,691 3,831,261 - - 21,299,691 3,831,261
Highways and Streets 19,864,939 21,702,882 - - 19,864,939 21,702,882
Interest on Long-term Debt 4,569,476 4,737,036 - - 4,569,476 4,737,036
Business-type Activities:
Water Quality - - 14,491,893 14,589,953 14,491,893 14,589,953
Solid Waste - - 7,290,557 7,486,122 7,290,557 7,486,122
Public Transit - - 3,138,207 3,197,038 3,138,207 3,197,038
Airport - - 8,442,866 8,448,124 8,442,866 8,448,124
Golf Course - - 1,126,709 1,198,840 1,126,709 1,198,840
Total Expenses 264,959,766 264,363,417 34,490,232 34,920,077 299,449,998 299,283,494
Change in Net Position before
transfers 64,028,622 14,459,764 6,736,067 (2,550,990) 70,764,689 11,908,774
Transfers (2,383,080) (5,683,433) 2,383,080 5,683,433 - -
Contributed Capital - - - - - -
Proceeds of Bond Sale 87,389 - - - 87,389 -
Change in Net Position 61,732,931 8,776,331 9,119,147 3,132,443 70,852,078 11,908,774
Net Position – Beginning of year 329,133,574 320,357,243 201,967,106 198,834,663 531,100,680 519,191,906
Net Position – End of year $390,866,505 $329,133,574 $211,086,253 $201,967,106 $601,952,758 $531,100,680
9
ANAGEMENT S ISCUSSION AND NALYSIS
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The County’s net position increased by $70.9 million during fiscal year 2021; total net position
as of June 30, 2021 was $602.0 million, representing a 13.34% increase.
Governmental Activities (government-wide) – Change in Net Position:
Revenues for the County’s governmental activities were $329.0 million for FY2021. Sources of
revenue are comprised of the following items:
Taxes represent the County’s largest revenue source at $280.2 million for FY2021, which
represents 86% of all County revenues.
The property tax rate is $.948 per $100 of assessed value and generates 41% of County
revenue.
Local taxes include income tax which generates 45% of County revenue. The rate for
FY2021 was 3.2%. Beginning January 1, 2022, the income tax rate will be reduced to
3.0%.
Operating grants and contributions represent 8% of total revenue and reflects federal and state
funding that the county uses to carry out certain initiatives. FY21 grants provided funding for
public safety programs and economic relief to businesses and non-profits.
Revenue from governmental activities increased over FY2020 by $50.2 million.
Charges for Services increased from FY2020 by $0.9 million. The majority of this
increase is reflected in Gaming revenues which are $0.8 million more than FY20. In
addition, licenses and permits increased by $0.2 million, reflecting higher levels of
economic activity; court costs and fines reduced by $0.2 million due to covid related
closures; and shared taxes increased by approximately $0.1 million in 911 fees charged
by phone line which support 911 operations.
Property taxes
41%
Other
1%
Charges for Services
Local taxes
45%
Operating Grants and contributions
8%
Capital grants and contributions
3%
REVENUES BY SOURCE -GOVERNMENTAL ACTIVITIES
10
ANAGEMENT S ISCUSSION AND NALYSIS
UNE
Operating grants and contributions increased by $17.1 million mainly due to additional
grants received related to the response for COVID-19.
Capital grants and contributions decreased by $4.5 million due to fluctuations in capital
spending. It is common for this line item to change from year to year due to varying
projects and associated funding sources.
Property Taxes increased over the prior year as expected by about $3.3 million due to
an increase in assessed values.
Local taxes increased by $33.2 million in total. FY2021 was the first full year of a
3.2% income tax rate which contributed to $27.1 million of the increase. This amount
includes $6.5 million more in disparity grant than FY2020. Other local taxes such as
recordation tax, excise tax, and transfer tax exceeded FY2020 revenue by $3.6 million,
$1.4 million, and $1.8 million respectively which is related to higher levels of
economic activity. APFO fees were $0.3 million less than FY2020 due to timing of
development which can fluctuate from year to year. In addition, admission and
amusement tax declined approximately $0.2 million as a result of COVID-19 related
closures. Lastly, trailer tax reduced by about 50% or $0.3 million as a result of the
change in the trailer tax rate from 15% of gross revenue to 7.5% of gross revenue.
Other revenues increased by $0.2 million which was a combination of $1.9 million in
proceeds received from the sale of Cascade Town Centre offset by a $1.7 million
reduction in income on investments as compared to FY2020.
A more detailed discussion of the County’s revenue results for FY2021 as compared to what was
budgeted can be found in the General Fund Budgetary Analysis section of this MD&A.
The following table presents costs and program revenues for major county programs. The total
cost of governmental services for FY2021 was $265.0 million. Revenues of $44.4 million that
offset these costs include $8.3 million in charges for services and $36.1 million in operating and
capital grants and contributions. The net amount of $220.6 million was paid for through county
taxpayer dollars.
11
ANAGEMENT S ISCUSSION AND NALYSIS
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Expenditures from governmental activities total $265 million, which represents an increase over
FY2020 by $0.6 million.
Education expenditures decreased by $5.0 million as compared to FY2020. The
increased appropriation to the Board of Education of $2.7 million was offset by a
decrease of $7.7 million for reclassifying capital expenditures and recording fixed
assets in governmental funds.
Public safety costs reduced by approximately $1.3 million mainly related to some one-
time expenditures that occurred in FY2020, but not in FY2021, along with increases in
EMS and fire operations due to additional personnel.
General Government decreased by approximately $10.0 million over FY2020. An
additional contribution to pension of $7.0 million was offset by adjustments for
recording pension activity in governmental funds. In addition, adjustments were made
for reclassifying capital expenditures and recording fixed assets. Capital Improvement
transactions are earmarked for specific capital related projects and its cash flow will
vary depending on the construction schedule and grant reimbursements.
Expenditures for Highways and Streets decreased by $1.8 million. An increase in
operational expenditures of approximately $0.5 million, mainly related to snow
removal efforts, was offset by a decrease of $2.3 million in expenditures related to
reclassifying capital expenditures and recording fixed assets in governmental funds.
Community promotion increased by $17.5 million as a result of COVID-19 relief
grants and increased gaming expenditures. Gaming funds were impacted in FY2020
by COVID related closures, however have returned to more normal levels in FY2021.
Category
2021 2020 2021 2020 2021 2020
Education 115,766,280$ 120,725,832$ -$ -$ 115,766,280$ 120,725,832$
Public Safety 61,670,985 63,008,479 7,602,367 9,229,490 54,068,618 53,778,989
General Government 28,575,774 38,552,091 8,929,048 5,143,581 19,646,726 33,408,510
Highways and Streets 19,864,939 21,702,882 10,059,583 14,235,500 9,805,356 7,467,382
Community Promotion 21,299,691 3,831,261 15,227,203 1,152,846 6,072,488 2,678,415
Parks and Recreation 7,235,708 7,356,435 442,360 655,711 6,793,348 6,700,724
Other 10,546,389 9,186,437 2,134,795 496,496 8,411,594 8,689,941
Total 264,959,766$ 264,363,417$ 44,395,356$ 30,913,624$ 220,564,410$ 233,449,793$
Expenses Revenues Net Cost of Services
(Government-Wide)
Net Cost of Governmental Activties
Washington County, Maryland
12
ANAGEMENT S ISCUSSION AND NALYSIS
UNE
Parks and recreation decreased by $0.1 million over the prior year which is mainly
related to reclassifying capital expenditures and recording fixed assets in governmental
funds.
Natural resources increased by $1.5 million, mainly due to an increase in land
preservation grants.
Debt service decreased by $0.2 million and is based on debt service schedules.
Transfers out decreased by $3.3 million mainly due to a one-time $3.0 million transfer
to the sewer fund that occurred in FY2020, but not in FY2021.
Governmental program expenditures are shown below. The largest expenditure category is
education at $115.8 million, followed by public safety at $61.7 million.
General
Government
11%
Public Safety
23%
Health
1%
Social Services
1%Education
43%
Parks and
Recreation
3%
Natural Resources
1%
Community Promotion
8%
Highways and Streets
7%
Interest on Long-
term Debt
2%
PROGRAM EXPENSE -GOVERNMENTAL ACTIVITIES
13
ANAGEMENT S ISCUSSION AND NALYSIS
UNE
Business-type Activities (government-wide) – Change in Net Position:
Highlights for the County’s business-type activities are as follows:
Business type activities experienced an increase in net position of $9.1 million.
$1.8 million increase in net position for Water Quality
$1.4 million increase in net position for Solid Waster
$5.5 million increase in net position for Airport
$0.4 million increase in net position for non-major proprietary funds.
Revenues increased over FY2020 by $8.9 million.
Charges for services increased by $1.8 million due to an increase in water and sewer
connection fees and user fees of $1.5 million and an increase in tipping fees of $0.3
million.
Operating grants and contributions increased by $1.5 million mainly due to an increase
related to federal CARES act funding for the Airport and Transit funds.
Capital grants and contributions increased by $5.8 million overall which consists of
$0.4 million decrease related to water quality; $6.3 million more in Airport; and a $0.1
million decrease in capital grants for transit. Capital revenues vary significantly from
year to year based on capital project schedules.
Other revenues decreased by $0.1 million because of various items.
Expenditures decreased as compared to FY2020 by $0.5 million.
Charges
for
Services
62%
Operating
Grants
8%
Capital
Grants
29%
Other
1%
REVENUES BY SOURCE -BUSINESS TYPE
ACTIVITIES
Water
Quality
43%
Solid Waste
21%
Public
Transit
9%
Airport
24%
Golf Course
3%
EXPENSES -BUSINESS TYPE ACTIVITIES
14
ANAGEMENT S ISCUSSION AND NALYSIS
UNE
Overall, business type expenditures decreased by $0.1 million. Solid Waste
expenditures decreased by $0.2 million or 3%; Water Quality expenditures decreased
by less than $0.1 million or 1%; Transit decreased by less than $0.1 million or 2%; and
the Golf Course reduced expenditures by less than $0.1 million or 5%.
Transfers in decreased by $3.3 million mainly due to a one-time $3.0 million transfer to the
sewer fund that occurred in FY2020, but not in FY2021.
The chart below provides a snapshot of the County’s business type activities and related charges
for services.
The County uses fund accounting to ensure and demonstrate compliance with finance related
legal requirements and restrictions, and fiscal accountability.
Governmental Funds:
The focus of the County’s governmental funds is to provide information on near term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the
County’s financing requirements. In particular, fund balance may serve as a useful measure of a
government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the County’s governmental funds reported combined
fund balances of $165.7 million, an increase of $36.6 million. Approximately $58.0 million of
this amount is committed for the general fund cash reserve and $107.7 million is restricted or
committed for construction projects and designated programs. In the combined governmental
activities the County maintains 11 separate funds. Shown below are fund balances and net
changes in fund balance for each.
-
2
4
6
8
10
12
14
16
Water Quality Solid Waste Airport Public Transit Black Rock Golf
Course
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Expenses and Program Revenues -Business-type Activities
Expenses Revenues
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ANAGEMENT S ISCUSSION AND NALYSIS
UNE
Washington County, Maryland
Fund Balance and Net Changes in Fund Balance – Fund Basis
The following reflects all inflows and outflows of the governmental funds in total for the fiscal
year ending June 30, 2021.
The General Fund is the chief operating fund of the County. At the end of the current fiscal
year total fund balance reached $62.0 million. As a measure of the General Fund’s liquidity,
it may be useful to compare both committed fund balance and total fund balance to total fund
expenditures. The total fund balance represents 21.49% of total General Fund expenditures.
The General Fund fund balance increased by approximately $6.0 million during the current
fiscal year. Higher than anticipated income tax and recordation tax, along with wage and
benefit savings, led to several significant transfers during the year. The County allocated
approximately $31 million to the Capital Projects Fund for specific projects or future one-
time costs. The County also allocated an additional $7 million to the Pension trust during the
year.
Governmental Activities Fund Balance Net Change in Fund Balance
2021 2020 % Change 2021 2020 % Change
General Fund $61,999,084 $55,974,199 10.76% $6,024,885 $10,477,504 -42.50%
Capital Improvement Fund
Grants Management 7,850 17,322 -54.68% (9,472) (25,651) 63.07%
Cascade Town Centre Fund 1,855,163 379,554 388.77% 1,475,609 (513,910) 387.13%
Inmate Welfare Fund 301,390 190,698 58.05% 110,692 (64,384) 271.92%
Contraband Fund 30,709 122,425 -74.92% (91,716) 24,359 -476.52%
Agricultural Education Fund 6,654 5,653 17.71% 1,001 (16,593) 106.03%
Hotel Rental Tax Fund
Gaming Fund
Land Preservation Fund 913,139 682,183 33.86% 230,956 113,287 103.87%
HEPMPO 37,862 12,882 193.91% 24,980 19,342 29.15%
Total $165,696,225 $36,599,208 $182,337
Taxes
87%
Charges for
Services
2%
Other
Revenues
2%
Shared Taxes
and Grants
9%
Summary of Inflows
All Governmental Funds
General
9%
Public Safety
21%
Education
39%
Debt Service
5%
Capital Costs
8%
Community
Promotion
7%
Programs &
Services
11%
Summary of Outflows
All Governmental Funds
16
ANAGEMENT S ISCUSSION AND NALYSIS
UNE
A more detailed discussion of General Fund revenues can be found in the General Fund
Budgetary Analysis section of the MD&A.
The Capital Projects Fund is used to account for major capital acquisition and construction
of County operations. At the end of the current fiscal year the Capital Project Fund has a total
fund balance of $98.8 million all of which is restricted or committed for capital related
projects. Major funding sources for projects are pay-go-funding, debt proceeds, fees and
taxes, and grants. Fund balance increased by $28.4 million for the current fiscal year. The
change in fund balance is the result of timing differences in project funding proceeds and the
spending or construction timeline of those projects.
The County’s Grant Management, Cascade Town Centre, Inmate Welfare, Contraband,
Agricultural Education, Hotel Rental Tax, Gaming, HEPMPO, and Land Preservation
Funds combined have a fund balance of $4.9 million. These funds represent monies
designated for specific programs and services. The net increase in fund balance during the
current year was $2.1 million and was mainly attributed to the sale of Cascade Town Centre.
Proceeds will be used to provide for certain expenditures of the fund in future years.
Proprietary funds:
The County’s proprietary funds provide the same type of information found in the government-
wide financial statements, but in more detail. Net position and net income (loss) were as follows:
Washington County, Maryland
Net Position and Net Income (Loss)
(Fund Basis)
Business-type
Activities Total Net Position Change in Net Position
2021 2020 % Change 2021 2020 %Change
144,438,964 $142,593,624 1.29% 1,845,340 $3,435,164 -46.28%
5,250,093 3,871,135 35.62% 1,378,958 972,541 41.79%
55,201,454 49,689,540 11.09% 5,511,914 (991,604) 655.86%
3,577,867 3,471,109 3.08% 106,758 (172,919) 161.74%
2,617,875 2,341,698 11.79% 276,177 (110,739) 349.39%
Total 211,086,253 $201,967,106 9,119,147 $3,132,443
17
ANAGEMENT S ISCUSSION AND NALYSIS
UNE
The following reflects the inflows and outflows of the business-type activity funds for the fiscal
year ending June 30, 2021.
Water quality’s net position amounted to $144.4 million in FY2021. Of this amount, $134.5
million represents the net investment in capital assets, $7.5 million is restricted for capital
projects, and $2.4 million remains unrestricted. Major changes over FY2020 include additional
revenues from connection fees of approximately $1.1 million due to higher levels of economic
activity and development. Also, water and sewer utility rates increased by 3% generating an
additional $0.4 million. Expenditures were in line with the prior year. Operating transfers
reduced by $2.9 million over the prior year, mainly due to the one-time transfer that occurred in
FY2020 from the General Fund.
Solid Waste’s net position amounted to $5.3 million for FY2021. Of this amount, $4.2 million
represents the net investment of capital assets; $0.4 million is restricted for capital projects; and
$0.7 million remains unrestricted. Major changes over FY2020 include slightly higher tipping
fee revenue of $0.3 million which is attributed to economic activity as no rate increases were
passed for the landfill in FY2021. Expenditures were in line with the prior year.
The Airport Fund’s FY2021 net position was $55.2 million. Of this amount, $74.8 million
represents the net investment of capital assets and ($19.6) million represents unrestricted fund
balance. The unrestricted deficit is the result of capital assets constructed by the lessee’s through
long-term lease agreements. The long-term lease agreements require the recognition of revenue
related to the capital assets constructed by the lessee’s over the life of the lease agreements and
will eliminate the unrestricted deficit over the term of the lease agreement. Major changes over
FY2020 include increased operating grant revenue of $0.8 million, mainly because of COVID
relief funding. In addition, capital grants and contributions of $10.2 million exceeded FY2020
by $6.3 million, representing funding for capital projects.
Transit’s ending net position is $3.6 million for FY2021. Of this amount, $2.3 million represents
the net investment of capital assets and $1.2 million is classified as unrestricted. Major changes
over the prior year include a reduction in operating revenue by approximately $0.3 million due to
less ridership as a result of the COVID-19 pandemic. Meanwhile, grants for operations increased
by $0.7 million, mainly due to pandemic relief grants.
Charges for
Services
59%
Operating
Grants
8%
Capital Grants
27%
Misc
1%
Transfers
5%
Sources of Inflows
Business Type Activities
Depreciation
36%
Personnel
36%
Operating
25%
Debt Costs
3%
Sources of Outflows
Business Type Activities
18
ANAGEMENT S ISCUSSION AND NALYSIS
UNE
The Black Rock Golf Course Fund’s FY2021 net position was $2.6 million. Of this amount,
$2.0 million represents the net investment of capital assets and $0.6 million is classified as
unrestricted. Operating revenue increased by $0.3 million mainly as a result of additional patrons
due to the pandemic and the nature of the activity being outdoors.
A discussion of enterprise fund long-term debt can be found in the Long-Term Debt section
presented later in this MD&A. Other factors concerning the finances of these funds have been
addressed in the discussion of the County’s business-type activities under “Financial Analysis on
Government-Wide Financial Statements.
Washington County, Maryland
General Fund Budgetary Analysis
As of June 30, 2021
(Government Fund Basis)
Category
Budgetary Amounts Actual Difference
Original Final Org. Budget
vs. Final Final Budget
$ 132,213,070 $ 132,213,070 $ 133,818,994 $ - $ 1,605,924
94,943,080 123,943,080 130,589,273 29,000,000 6,646,193
11,150,160 31,405,959 30,589,799 20,255,799 (816,160)
238,306,310 287,562,109 294,998,066 49,255,799 7,435,957
30,079,540 43,290,084 42,104,220 13,210,544 1,185,864
53,360,370 60,094,008 57,105,922 6,733,638 2,988,086
2,774,830 2,774,830 2,774,830 - -
113,243,390 113,243,390 113,243,390 - -
7,432,890 7,598,780 6,922,056 165,890 676,724
11,736,350 11,737,460 11,027,895 1,110 709,565
518,180 518,180 476,779 - 41,401
125,000 7,125,000 5,417,016 7,000,000 1,707,984
3,224,990 25,772,884 34,691,822 22,547,894 (8,918,938)
- - 193,162 - (193,162)
15,810,770 15,407,493 15,401,668 (403,277) 5,825
Total Expenses 238,306,310 287,562,109 289,358,760 49,255,799 (1,796,651)
Other Financing Sources (Uses) - - 385,579 - 385,579
Net Increase in Assets - 06/30/21 $ - $ - $6,024,885 $ -
19
ANAGEMENT S ISCUSSION AND NALYSIS
UNE
Original Budget vs. Final Budget:
The net budgetary change of $49.2 million resulted mainly from income tax revenue and grant
transactions.
The FY2021 budget was developed during the onset of the COVID19 pandemic. Despite the
2020 income tax change from 2.8% to 3.2%, County leaders felt strongly that it was in the best
interest of the county at the time to move forward with a “needs” based budget, planning for a
worse-case scenario for the county. The budget did not include any funding for capital projects.
Fortunately, the County did not face high levels of unemployment or large business closures.
Income tax generated was higher than estimates. Adjustments were made to the income tax
budget during the year in the amount of $29 million to account for the revenue. These funds
primarily went towards capital projects or other one time expenditures including, but not limited
to:
Board of Education
o Roof Replacement
o School Construction
Public Safety
o Police, Fire, and Emergency Services Training Facility
o P25 Radio Communication Upgrade
o Law Enforcement Vehicles
o Emergency Services Vehicles
Pavement Maintenance and Rehabilitation
Stormwater Retrofits
Facilities Systemic Projects and Roof Repairs
Highway Vehicle and Equipment Replacement
Additional contribution to pension
Federal and State grants were secured in the amount of $20.2 million, of which approximately
$13 million were related to COVID relief efforts. These grants were mainly utilized for business
relief efforts and allocated in the following manner:
Business Stabilization $4.8 million
Restaurant Relief $2.8 million
Hotel Relief $0.9 million
Non-Profit Assistance $2.7 million
Tourism $0.5 million
County IT Infrastructure $1.3 million
20
ANAGEMENT S ISCUSSION AND NALYSIS
UNE
Final Budget vs. Actual Results:
Final budget to actual results include additional revenues of $7.4 million or 2.6%.
Revenue Highlights
Property Tax - Property tax revenue exceeded budget by $1.6 million or 1.2%. The majority of
the overage is related to personal property tax which was higher than State estimates due to new
businesses and an increase in inventories.
Local tax was over budget by $6.6 million or 5.4%, primarily due to higher than budgeted
recordation tax of $5.0 million, marking the highest recordation tax revenue in 15 years. This
variance represents an increase in the number and value of real property transfers in the County
and several large commercial transactions. In addition, Income Tax revenue exceeded budget by
$1.7 million or 1.5%. These increases were offset by a reduction in Admission and Amusement
Tax of $0.1 million, largely a result of the pandemic. The County income tax rate increased from
2.8% to 3.2% effective January 1, 2020. Fiscal year 2021 was the first full fiscal year reflecting
the rate of 3.2%. During FY2021, the Board of County Commissioners voted to reduce the
income tax rate to 3.0% effective January 1, 2022.
Other Revenue came in under budget by approximately $0.8 million or 2.6%. This budget to
actual variance is related to grants and shared revenues. Grant periods can span County fiscal
years leaving budgeted funds unexpended.
Expenditure Highlights
Final budget to actual results include expenditures in excess of budget by $1.8 million or 0.6%.
The largest deviation from final budget is the result of an additional transfer from the General
fund to the Capital Projects fund in the amount of $9 million, which is shown within the category
of intergovernmental expenses. Use of this funding will be determined at a later date, but will
most likely be used for capital projects or other one-time costs.
The number and duration of vacancies within the county contributed to wage savings of $1.4
million and benefit savings of $3.8 million for FY2021. The County is self-insured for both
health insurance and workers compensation, therefore, variances exist at the end of the fiscal
year based on actual experience. For FY2021, health insurance and workers compensation costs
were under budget by approximately $2.5 million and $0.5 million respectively. The remaining
benefit variance is related to FICA, unemployment compensation, other insurance, employee
recognition and development programs, and pension.
Departmental savings totaled $1.5 million or 1% as a result of department heads’ efforts to
reduce costs and focus on operational efficiencies.
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ANAGEMENT S ISCUSSION AND NALYSIS
UNE
Highway expenditures were $0.7 million under budget due to less spending on road maintenance
and fleet management expenditures as a result of COVID-19 shutdowns.
Billable expenditures were over budget by $0.2 million.
Additional Information:
Income tax
Major factors for the FY2021 income tax budget to actual variance include; 1) consideration of
the FY2021 budget development; 2) income tax rate of 3.2%; 3) taxing of unemployment
stimulus; 4) disparity grant; and 5) change in timing of payments from pass through entities.
FY2021 was the first fiscal year with full implementation of the 3.2% income tax rate, which was
raised from 2.8% to 3.2% effective January 1, 2020. In addition to the tax on earnings, the increase
from 2.8% to 3.2% generated $6 million more in disparity grant from the state which is based on a
state legislative formula.
A comparison of actual income tax to the original budget shows a variance of $31.0 million. This is
understandable given the approach of the FY2021 budget. Due to unknown impacts of the
pandemic, the County did not increase its income tax budget for the impact of the tax increase in
FY2021. The original budget was designed to safeguard the county against over committing and
under delivering. Fortunately, the county did not face significant financial hardship in FY2021.
While Washington County’s unemployment rate reached a high of 11.4% in April 2020,
unemployment levels consistently trended downward thereafter, with an average for FY2021 of
6.2%. The County saw significantly less unemployment than early estimates. In addition, those on
unemployment benefited from federal stimulus packages, which in some cases increased taxable
wages across the county for certain individuals. As a result of the Governor’s Relief Act of 2021,
signed on February 15, 2021, unemployment benefits are no longer taxable for calendar years 2020
and 2021.
0
20
40
60
80
100
120
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
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History of Income Tax
22
ANAGEMENT S ISCUSSION AND NALYSIS
UNE
The estimated amount of overpayment from the State, as noted in the fiscal and policy note of
HB612 for Washington County is $3.9 million for fiscal year 2021. Unemployment has continued
to be taxed at the State level and distributed to counties in subsequent distributions. We expect this
total figure for over distribution to increase which will reduce the County’s future distributions at
some time in the future. The state has not confirmed when this reconciliation may occur.
Legislation enacted at the 2020 session of the Maryland General Assembly created an entity level
tax for PTEs in Maryland. Prior to this legislation, PTEs contributed estimated payments on behalf
of their non-resident owners. Now, PTEs may pay on behalf of their resident owners as well. There
was a surge in payments to the State in the last quarter of 2020, a result of PTEs taking advantage of
federal tax breaks due to the enacted legislation. This result indicates that counties may start
receiving a bulk payment for taxes relative to these owners rather than in quarterly installments.
This may be a structural change to the timing of payments moving forward.
Recordation tax
Recordation Tax is applied to any instrument that transfers an interest in real property or that
creates a security interest in real or personal property. The recordation tax rate for Washington
County is $3.80 for every $500 or fraction of $500 of consideration. Washington County
generally receives between $6 and $7 million in recordation tax annually, but it can fluctuate as
it is based on economic activity, the number of transfers, and the size of those transfers. The
County does not anticipate future years’ recordation revenue to reach the levels of FY2021.
0
2
4
6
8
10
12
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
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History of Recordation Tax
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ANAGEMENT S ISCUSSION AND NALYSIS
UNE
The County’s investment in capital assets for its governmental and business-type activities as of
June 30, 2021, amounts to $675.8 million (net of depreciation). This investment in capital assets
includes land, buildings, bridges, roads, equipment, and operational facilities.
Washington County, Maryland
Net Capital Assets
(Government Fund Basis)
Description Governmental Activities Business-type Activities Total
2021 2020 2021 2020 2021 2020
Land and Land Improvements
Building and Improvements
Facilities, Lines, and Mains
Vehicles
Infrastructure
Machinery and Equipment
Office/Computer Equipment
Treatment Plants
Total
Major capital asset events, excluding education, during the current fiscal year included the
following:
Additional information on the County’s capital assets can be found in note 5 on pages 61-64 of
this report.
Infrastructure, $14,612,315 ,
38%
Airport Terminal Expansion,
$8,807,310 , 23%
Vehicles & Equipment,
$6,913,143 , 18%
Poffenberger Road Bridge,
$1,575,246 , 4%
Runway 9/27 Rehabilitation,
$6,553,718 , 17%
24
ANAGEMENT S ISCUSSION AND NALYSIS
UNE
At the end of the current fiscal year, the County had total outstanding debt, excluding capital
leases, of $196.1 million. This amount was comprised of debt backed by the full faith and credit
of the County and user fees. The debt balance decreased by a net of $2.8 million, the result of
net principal payments of $13.7 million and new borrowings of $10.9 million. Funds borrowed
were used mainly for infrastructure and education projects.
Washington County, Maryland
Outstanding Debt
(Government – Wide)
Instrument Type Governmental Activity Business-type Activity Total Outstanding Debt
2021 2020 2021 2020 2021 2020
General Obligation Bonds
Maryland Water Quality Bonds
Total
The County’s credit ratings for fiscal year 2021 are as follows: 1) Standard and Poor’s rated
AA+, 2) Fitch rated AA+, and 3) Moody’s Investors Service rated Aa1.
Under the Code of Public Local Law, the amount of general obligation debt the County may
issue associated with water quality debt is limited to 10 percent of its total assessed valuation of
all real estate in the County that is subject to taxation. The current estimated debt limitation for
water quality is $1.4 billion, which is significantly in excess of the County’s current water
quality general obligation debt.
Additional Information on the County’s long-term debt can be found in note 8 on pages 67-72 of
this report.
Washington County’s economy is showing signs of mixed economic performance for
FY2021. The average price of a home sold increased by 13.7% in FY2021 to $256,528. The
number of units sold also increased in FY2021 by 16% from 1,922 to 2,234. Active
inventory on the market is low bringing a premium to sellers in the market.
25
ANAGEMENT S ISCUSSION AND NALYSIS
UNE
Development projects in the County have continued despite the COVID-19 pandemic.
Millions in investment will ultimately increase real estate and income taxes in the County. A
portion of this development is offset initially with real estate tax credits.
Inflation, as measured by the Consumer Price Index, is expected to increase which could
impact pricing of goods and services within the County.
Washington County’s unemployment rate for the last three years is as follows:
June 2019 4.1%
June 2020 8.2%
June 2021 6.6%
Unemployment trends are showing a slow steady improvement over the past 12 months. It is
anticipated that the unemployment rate will take several years to fully recover due to
permanent loss of certain jobs, re-entry/retraining of the current workforce, and new
workforce entry.
The Board of County Commissioners recently voted to reduce the income tax rate from 3.2%
to 3.0% effective January 1, 2022. The County will experience the loss in revenue associated
from the difference in the tax rate for six months of the year for FY2022. In FY2023, the
County will experience the loss of revenue from the difference in the tax rate for the full year
as well as a decrease in the disparity grant of about $4 million. The full year reduction is
estimated at $11 million in revenue, but could fluctuate based on varying circumstances
related to taxpayers.
Water and Sewer rates were increased by 3.5% for the 2022 budget year. This revenue
increase is based on financial information formulated annually from the County’s cost of
service model. The Sewer fund utilizes cash reserves in FY2022 to balance the budget but is
expected to reach a self-supported status by FY2024 with projected annual rate increases of
3.5%. The Water Fund will not reach a self-supported status without a significant increase in
customer base or reduction in expenditures. The General fund currently subsidizes the Water
fund.
Future economic development could be impacted if an agreement is not reached with The
City of Hagerstown (the City) since they own and maintain the largest water system in the
County. The City provides drinking water to citizens in and around the City, and the Towns
of Williamsport, Funkstown, and Smithsburg. The limitations on new allocation enacted by
the City based upon their estimates may limit the amount of future commercial, industrial,
and residential development in the county.
26
ANAGEMENT S ISCUSSION AND NALYSIS
UNE
In response to the initial occurrence of the COVID-19 pandemic, the Governor of the State of
Maryland proclaimed a state of emergency and catastrophic health emergency within the
State of Maryland on March 5, 2020 and renewed on March 17, 2020. Since the initial and
renewed proclamation, the Governor of Maryland has issued a series of executive orders,
among other things, prohibiting large gatherings and events, requiring closure of nonessential
and certain other businesses and authorizing emergency healthcare delivery. On March 30,
2020, the Governor of Maryland issued an executive order requiring Maryland residents to
stay at home except for essential activities. On May 13, 2020, the Governor of Maryland
amended and restated an existing order to allow the reopening of certain businesses and
facilities subject to local regulation. Subsequently, the Governor issued a series of executive
orders from time to time that tightened or loosened restrictions in response to the increase or
lessening of the infection levels in the State. As a result of the rounds of executive orders,
many businesses and retail establishments in Maryland, including in the County, were closed
or materially reduced business activity for a period of time. With more recent improvements
in State metrics and vaccine availability, the Governor of Maryland took steps to loosen
restrictions. Effective March 12, 2021, the Governor lifted capacity restrictions on indoor
and outdoor dining, increased capacity to 50% for large indoor and outdoor venues, and lifted
quarantine periods for out of state travel. On June 15, 2021 the Governor of Maryland
declared that effective July 1, 2021 emergency mandates and restrictions would end and there
would no longer be a statewide masking order. Any increases in infection levels could lead to
the imposition of tighter restrictions.
The County’s principal source of revenue is local taxes, which represents 96% of the General
Fund budget: 56% from real property taxes, 37% from local income taxes and 3% from other
local taxes. Income tax revenues appear to have been positively impacted by the enhanced
benefit provided by Congress of an additional $600 per week for unemployment benefits. In
addition, stimulus funding may have increased taxable wages for FY2021.
Although the County does not currently anticipate that the levy and collection of property
taxes during fiscal year 2022 will be materially affected, the potential impact of the COVID-
19 pandemic cannot be fully determined at this time. It is possible that assessment appeals
related to commercial property assessments could impact the County’s property tax revenue
in the short term.
The County received $13.2 million in CARES Act funding in May 2020, which was used by the
County to cover certain costs or distributed to qualifying recipients through a variety of County
programs. Together We Rise, the largest program recipient, was a business stabilization effort
that provided approximately $8.5 million to over 800 local businesses. The County also
distributed a portion of such CARES Act funds to various local non-profit organizations in the
27
ANAGEMENT S ISCUSSION AND NALYSIS
UNE
cumulative amount of $2.5 million. An additional $1.3 million provided for County-related
information technology enhancements to assist teleworking activities to serve the public.
Approximately $400,000 was provided as reimbursement to the County and multiple
municipalities for pandemic related costs. The remaining approximately $500,000 was provided
to the Convention and Visitors Bureau for tourism revitalization efforts.
The more recently enacted federal American Rescue Plan Act of 2021 is expected to result in
direct funding being allocated to Washington County in the amount of approximately $60.5
million, with approximately $31.2 million being distributed to municipalities located in
Washington County and approximately $29.3 million being retained by the County initially. The
County has received 50% of the total allocation and expects the remainder to be distributed in
June 2022. The funding may be used to respond to or mitigate the COVID-19 health emergency
or its negative economic impacts, including assistance to households, small businesses,
nonprofits, and aid for tourism, travel and hospitality; to provide essential workers with premium
pay; to cover revenue loss incurred as a result of the COVID-19 pandemic; or to make necessary
investments in water, sewer, or broadband infrastructure. Such funds may not be used to support
any pension funding or to offset a tax cut. The County has not yet determined how the funds
initially reserved to the County will be spent.
This financial report is designed to provide a general overview of the County’s finances for all
those with an interest in the government’s finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the
Office of Budget and Finance, 100 West Washington Street, Room 3100, Hagerstown, Maryland
21740. Questions concerning the Washington County Board of Education should be directed to
their offices at 10435 Downsville Pike Hagerstown, Maryland 21740.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Statement of Net Position
As of June 30, 2021
The accompanying notes are an integral part of this financial statement.
28
ASSETS
Cash and short-term investments 162,505,459$ 35,075,137$ 197,580,596$ 18,054,196$ 215,634,792$
Investments 10,496,657 - 10,496,657 43,888,389 54,385,046
Property taxes receivable, net of allowance 761,411 - 761,411 - 761,411
Accounts receivable, net of allowance 2,724,888 1,222,333 3,947,221 483,631 4,430,852
Interest receivable 12,584 - 12,584 - 12,584
Unbilled receivables 392,292 2,402,434 2,794,726 - 2,794,726
Internal balances 395,408 (395,408) - - -
Due from other governmental agencies 59,452,564 4,372,192 63,824,756 24,080,914 87,905,670
Inventories 832,151 335,820 1,167,971 457,123 1,625,094
Other assets - - - 1,701,814 1,701,814
Other post employment benefits asset 17,672,160 - 17,672,160 - 17,672,160
Net Pension Asset- LOSAP 253,233 - 253,233 - 253,233
Recoverable disbursements 97,151 - 97,151 - 97,151
Notes receivable 567,555 287,122 854,677 - 854,677
Projects under construction 27,167,306 2,602,741 29,770,047 1,929,598 31,699,645
Property, plant, and equipment, net 423,037,643 252,811,769 675,849,412 240,543,836 916,393,248
TOTAL ASSETS 706,368,462 298,714,140 1,005,082,602 331,139,501 1,336,222,103
DEFERRED OUTFLOWS OF RESOURCES
Loss on refunding 1,697,718 516,140 2,213,858 - 2,213,858
Net pension activity 2,140,629 - 2,140,629 5,986,406 8,127,035
Net OPEB activity - - - 74,846,600 74,846,600
TOTAL DEFERRED OUTFLOWS OF RESOURCES 3,838,347 516,140 4,354,487 80,833,006 85,187,493
Current Liabilities:
Current maturities of long-term obligations 10,284,379 3,630,497 13,914,876 - 13,914,876
Current maturities of capital lease obligations 122,502 314,866 437,368 9,518 446,886
Current maturities of installment purchase contracts 181,779 - 181,779 - 181,779
Accounts payable 16,071,336 1,445,990 17,517,326 5,364,727 22,882,053
Accrued expenses 2,450,963 685,743 3,136,706 25,100,394 28,237,100
Accrued interest 2,306,866 616,449 2,923,315 - 2,923,315
Unearned revenue 18,980,629 1,287,205 20,267,834 5,691,931 25,959,765
Compensated absences 2,772,421 510,679 3,283,100 466,722 3,749,822
Landfill closure and post-closure costs - 200,900 200,900 - 200,900
Other liabilities 2,561,706 162,464 2,724,170 - 2,724,170
Liabilities for unpaid claims 1,693,567 - 1,693,567 - 1,693,567
Total current liabilities 57,426,148 8,854,793 66,280,941 36,633,292 102,914,233
Noncurrent Liabilities:
Compensated absences 924,140 170,227 1,094,367 6,438,004 7,532,371
Post retirement benefits - - - 209,519,974 209,519,974
Long-term debt obligations 141,646,889 40,509,482 182,156,371 - 182,156,371
Capital lease obligations 321,171 1,001,314 1,322,485 21,133 1,343,618
Installment purchase contracts 760,214 - 760,214 - 760,214
Landfill closure and post-closure costs - 16,162,048 16,162,048 - 16,162,048
Net pension liability 81,216,017 - 81,216,017 20,859,450 102,075,467
Total noncurrent liabilities 224,868,431 57,843,071 282,711,502 236,838,561 519,550,063
TOTAL LIABILITIES 282,294,579 66,697,864 348,992,443 273,471,853 622,464,296
Deferred inflows of resources - 21,446,163 21,446,163 - 21,446,163
Net pension activity 23,950,459 - 23,950,459 2,090,527 26,040,986
Net OPEB activity 13,095,266 - 13,095,266 106,345,573 119,440,839
TOTAL DEFERRED INFLOWS OF RESOURCES 37,045,725 21,446,163 58,491,888 108,436,100 166,927,988
NET POSITION
Net investment in capital assets 360,482,566 217,849,212 578,331,778 242,442,783 820,774,561
Restricted for:
John Howard Trust 255,204 - 255,204 - 255,204
Capital projects 31,127,279 7,890,861 39,018,140 - 39,018,140
Scholarships & Student Activites - - - 3,991,292 3,991,292
Unrestricted (998,544) (14,653,820) (15,652,364) (216,369,521) (232,021,885)
TOTAL NET POSITION 390,866,505$ 211,086,253$ 601,952,758$ 30,064,554$ 632,017,312$
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Statement of Activities
For the Year Ended June 30, 2021
The accompanying notes are an integral part of this financial statement.
29
Expenses
Charges for
Services
Operating Grants
and Contributions
Capital Grants
and Contributions
Program Revenue
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Statement of Activities
For the Year Ended June 30, 2021
The accompanying notes are an integral part of this financial statement.
30
Component Unit
Governmental
Activities
Business-Type
Activities Total
Board of
Education Total
Primary Government
Net (Expense) Revenue and Changes in Net Position
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Balance Sheet - Governmental Funds
As of June 30, 2021
The accompanying notes are an integral part of this financial statement.
31
Capital Total
General Projects Non-Major Governmental
Fund Fund Funds Funds
ASSETS
Cash 61,770,766$ 92,417,603$ 8,317,090$162,505,459$
Investments 10,240,627 256,030 - 10,496,657
Property taxes receivable, net of allowance 761,411 - - 761,411
Accounts receivable, net of allowance 1,527,097 811,502 386,289 2,724,888
Interest receivable 12,545 39 - 12,584
Unbilled receivables 392,292 - - 392,292
Due from other funds - 636,410 - 636,410
Due from other governmental agencies 48,083,832 7,333,243 4,035,489 59,452,564
Recoverable disbursements 97,151 - - 97,151
Notes receivable 567,555 - - 567,555
Inventories 832,151 - - 832,151
TOTAL ASSETS 124,285,427$ 101,454,827$ 12,738,868$ 238,479,122$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable 10,353,395$ 2,695,678$ 3,022,263$16,071,336$
Accrued expenses 2,417,599 7,227 26,137 2,450,963
Due to other funds - - 241,002 241,002
Liabilities for unpaid claims 1,693,567 - - 1,693,567
Unearned revenue 15,233,612 - 3,747,017 18,980,629
Other liabilities 1,804,476 - 757,230 2,561,706
TOTAL LIABILITIES 31,502,649 2,702,905 7,793,649 41,999,203
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 30,783,694 - - 30,783,694
FUND BALANCES
Nonspendable 1,147,265 - - 1,147,265
Restricted 720,318 31,127,279 2,369,675 34,217,272
Committed 60,119,034 67,624,643 2,367,959 130,111,636
Assigned 12,467 - 207,585 220,052
TOTAL FUND BALANCES 61,999,084 98,751,922 4,945,219 165,696,225
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 124,285,427$ 101,454,827$ 12,738,868$ 238,479,122$
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Reconciliation of Balance Sheet of Governmental Funds to Statement of Net Position
As of June 30, 2021
The accompanying notes are an integral part of this financial statement.
32
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Statement of Revenue, Expenditures, and Changes in Fund Balances - Governmental Funds
For the Year Ended June 30, 2021
The accompanying notes are an integral part of this financial statement.
33
REVENUE
General property tax 133,818,994$ -$ -$ 133,818,994$
Other local tax 130,589,273 7,439,859 1,975,149 140,004,281
Licenses and permits 1,374,019 - 2,649,910 4,023,929
Court costs and fines 1,451,977 - - 1,451,977
Charges for services 1,026,841 - 525,901 1,552,742
Reimbursed expenses 1,106,950 - 8,085 1,115,035
Interest income 594,245 - -594,245
Miscellaneous revenues 625,111 91,734 2,101,385 2,818,230
Grants and shared revenues 22,158,043 343,662 4,771,893 27,273,598
Highway 2,252,613 - - 2,252,613
Total Revenue 294,998,066 7,875,255 12,032,323 314,905,644
EXPENDITURES
Current:
General government 26,227,320 - - 26,227,320
Public safety 57,105,922 - 1,870,712 58,976,634
Health 2,339,270 - - 2,339,270
Social services 435,560 - -435,560
Education 113,243,390 - - 113,243,390
Parks, recreation and culture 6,294,650 - 232,854 6,527,504
Natural resources 627,406 - 2,546,937 3,174,343
Intergovernmental 38,543 - -38,543
General operations 6,086,957 - 1,115,832 7,202,789
Community promotion 15,876,900 - 5,422,665 21,299,565
Highways and streets 10,527,895 - - 10,527,895
Debt service 15,401,668 - - 15,401,668
Capital outlay:
General government - 2,722,432 - 2,722,432
Public safety - 5,440,020 - 5,440,020
Highways and streets - 11,968,137 - 11,968,137
Education - 2,522,890 - 2,522,890
Parks and recreation - 352,169 - 352,169
Total Expenditures 254,205,481 23,005,648 11,189,000 288,400,129
Excess (Deficiency) of Revenue
Over Expenditures 40,792,585 (15,130,393) 843,323 26,505,515
OTHER FINANCING SOURCES (USES)
Transfers in - 32,609,994 1,324,830 33,934,824
Transfers out (35,153,279) (1,139,878) (24,747) (36,317,904)
Principal amount of new debt for advance refunding 14,007,250 - - 14,007,250
Deposit to escrow fund for advance refunding and repayment of loans (14,007,250) - - (14,007,250)
Proceeds of bond sale - 12,091,194 - 12,091,194
Proceeds from capital lease 385,579 - - 385,579
TOTAL OTHER FINANCING SOURCES (USES)(34,767,700) 43,561,310 1,300,083 10,093,693
NET CHANGES IN FUND BALANCE 6,024,885 28,430,917 2,143,406 36,599,208
FUND BALANCES - BEGINNING OF YEAR 55,974,199 70,321,005 2,801,813 129,097,017
FUND BALANCES - END OF YEAR 61,999,084$ 98,751,922$ 4,945,219$ 165,696,225$
General Fund
Total
Governmental
Funds
Non-Major
Funds
Capital Projects
Fund
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Reconciliation of Statement of Revenue, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2021
The accompanying notes are an integral part of this financial statement.
34
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Statement of Net Position - Proprietary Funds
As of June 30, 2021
The accompanying notes are an integral part of this financial statement.
35
Business Type Activities - Enterprise Funds
Water Solid
Quality Waste Airport Non-Major
Fund Fund Fund Funds Total
ASSETS
16,038,613$ 17,500,823$ 300$ 1,535,401$ 35,075,137$
1,098,160 91,151 31,167 1,855 1,222,333
1,758,606 616,736 27,052 40 2,402,434
235,572 - 3,551,635 584,985 4,372,192
- 287,122 - - 287,122
52,180 18,646 67,456 197,538 335,820
Total current assets 19,183,131 18,514,478 3,677,610 2,319,819 43,695,038
1,734,716 101,748 761,525 4,752 2,602,741
238,330,473 70,302,824 168,907,562 12,319,559 489,860,418
(80,511,371) (53,913,319) (94,598,314) (8,025,645) (237,048,649)
Total noncurrent assets 159,553,818 16,491,253 75,070,773 4,298,666 255,414,510
TOTAL ASSETS 178,736,949 35,005,731 78,748,383 6,618,485 299,109,548
DEFERRED OUTFLOWS OF RESOURCES
326,473 186,857 2,810 - 516,140
LIABILITIES
2,026,332 1,497,835 106,330 - 3,630,497
- 314,866 - - 314,866
325,883 171,619 830,322 118,166 1,445,990
449,128 85,150 24,932 126,533 685,743
425,457 185,477 5,515 - 616,449
380,292 - 15,116 - 395,408
84,679 402,524 800,002 - 1,287,205
304,417 82,826 29,764 93,672 510,679
- 200,900 - - 200,900
7,300 - 102,016 53,148 162,464
Total current liabilities 4,003,488 2,941,197 1,913,997 391,519 9,250,201
101,473 27,609 9,921 31,224 170,227
30,519,497 9,810,327 179,658 - 40,509,482
Capital lease obligations - 1,001,314 - - 1,001,314
- 16,162,048 - - 16,162,048
Total noncurrent liabilities 30,620,970 27,001,298 189,579 31,224 57,843,071
TOTAL LIABILITIES 34,624,458 29,942,495 2,103,576 422,743 67,093,272
DEFERRED INFLOWS OF RESOURCES - - 21,446,163 - 21,446,163
NET POSITION
134,536,826 4,228,935 74,784,785 4,298,666 217,849,212
7,528,837 362,024 - - 7,890,861
2,373,301 659,134 (19,583,331) 1,897,076 (14,653,820)
TOTAL NET POSITION 144,438,964$ 5,250,093$ 55,201,454$ 6,195,742$ 211,086,253$
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Statement of Revenue, Expenses and Changes in Net Position - Proprietary Funds
For the Year Ended June 30, 2021
The accompanying notes are an integral part of this financial statement.
36
Water Solid
Quality Waste Airport Non-Major
Fund Fund Fund Funds Total
OPERATING REVENUE
Charges for services 13,996,965$ 7,961,022$ 2,601,377$ 1,223,403$ 25,782,767$
Miscellaneous 15,026 201,147 49,701 26,571 292,445
TOTAL OPERATING REVENUE 14,011,991 8,162,169 2,651,078 1,249,974 26,075,212
OPERATING EXPENSES
Salaries and wages 3,902,000 1,444,652 663,723 1,884,706 7,895,081
Fringe benefits 2,602,199 842,625 374,631 849,633 4,669,088
Utilities 1,059,405 46,772 217,373 76,224 1,399,774
Insurance 156,023 30,629 54,225 40,865 281,742
Repairs and maintenance 438,149 1,516 126,454 339,377 905,496
Supplies 253,710 112,041 19,478 41,944 427,173
Cost of goods sold - - 1,873 85,753 87,626
Contracted services 266,289 1,550,325 47,910 105,992 1,970,516
Rentals and leases 44,276 2,042 4,871 107,692 158,881
Other operating 1,119,567 799,488 125,753 349,531 2,394,339
Uncollectible accounts (1,241) 289,781 178 - 288,718
Controllable assets 103,159 12,938 207,990 11,729 335,816
Depreciation 3,866,389 1,882,731 6,590,753 371,470 12,711,343
TOTAL OPERATING EXPENSES 13,809,925 7,015,540 8,435,212 4,264,916 33,525,593
OPERATING INCOME (LOSS)202,066 1,146,629 (5,784,134) (3,014,942) (7,450,381)
OTHER INCOME (EXPENSE)
Interest expense (681,968) (275,017) (7,654) - (964,639)
Interest income 152,645 4,087 1,892 (1,631) 156,993
Gain (loss) on disposal of assets (13,533) 7,179 (311,609) (8,005) (325,968)
TOTAL OTHER INCOME (EXPENSE)(542,856) (263,751) (317,371) (9,636) (1,133,614)
INCOME (LOSS) BEFORE OPERATING TRANSFERS
AND GRANTS (340,790) 882,878 (6,101,505) (3,024,578) (8,583,995)
OPERATING TRANSFERS IN 341,725 496,080 135,747 1,037,600 2,011,152
OPERATING TRANSFERS OUT - - - (17,950) (17,950)
GRANTS FOR OPERATING 235,572 - 1,295,273 1,949,906 3,480,751
NET INCOME (LOSS) BEFORE CAPITAL TRANSFERS
AND GRANTS 236,507 1,378,958 (4,670,485) (55,022) (3,110,042)
CAPITAL TRANSFERS 241,878 - 28,000 120,000 389,878
CAPITAL GRANTS AND CONTRIBUTIONS 1,366,955 - 10,154,399 317,957 11,839,311
CHANGES IN NET POSITION 1,845,340 1,378,958 5,511,914 382,935 9,119,147
NET POSITION - BEGINNING OF YEAR 142,593,624 3,871,135 49,689,540 5,812,807 201,967,106
NET POSITION - END OF YEAR 144,438,964$
Business Type Activities - Enterprise Funds
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Statement of Cash Flows – Proprietary Funds
For the Year Ended June 30, 2021
The accompanying notes are an integral part of this financial statement.
37
Water Solid
Quality Waste Airport Non-Major
Fund Fund Fund Funds Total
Cash Flows from Operating Activities
Receipts from customers
Net Cash Provided (Used) by Operating Activities
Cash Flows from Noncapital Financing Activities
Operating contributions
Net Cash Provided (Used) by Noncapital Financing Activities
Cash Flows from Capital and Related Financing Activities
Interest paid on notes and bond payable
Net Cash Provided (Used) by Capital and Related Financing A
Cash Flows from Investing Activities
Interest on investments
Cash, End of Year
Non-Cash Operating Activities
Loss on refunding
Non-Cash Capital and Related Financing Activities
Capital lease
from Operating Activities
Operating income (loss)
Net Cash Provided (Used) by Operating Activities
Schedule of non-cash capital and related financing activities:
Contributions of capital assets
Enterprise Funds
Reconciliation of Operating Loss to Net Cash
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Statement of Net Position – Fiduciary Funds
As of June 30, 2021
The accompanying notes are an integral part of this financial statement.
38
ASSETS
Cash and short-term investments 4,211,351$ 254,090$ 853,093$ 5,318,534$
Investments, at fair value:
Corporate bonds and obligations 61,541 --61,541
Fixed income securities 45,903,865 3,623,706 7,331,249 56,858,820
Real Estate investment 7,000,005 - 1,500,005 8,500,010
Equity funds 115,537,329 8,613,441 21,548,492 145,699,262
Accounts receivable 7,106,671 7,120 10,904 7,124,695
TOTAL ASSETS 179,820,762 12,498,357 31,243,743 223,562,862
LIABILITIES
Accounts payable --305,301 305,301
TOTAL LIABILITIES --305,301 305,301
NET POSITION
Held in trust for pension and OPEB 179,820,762 12,498,357 30,938,442 223,257,561
NET POSITION 179,820,762$ 12,498,357$ 30,938,442$ 223,257,561$
Pension Trust OPEB TrustLOSAP Trust
Total Pension
and OPEB Trust
Funds
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Statement of Changes in Net Position - Fiduciary Funds
For the Year Ended June 30, 2021
The accompanying notes are an integral part of this financial statement.
39
ADDITIONS
Contributions:
Employer 19,210,540$ 564,557$ 12,832$ 19,787,929$
Plan members 2,527,417 - - 2,527,417
Total Contributions 21,737,957 564,557 12,832 22,315,346
Investment Income:
Realized and unrealized gains 33,359,711 2,611,643 6,304,200 42,275,554
Interest and dividends 871 54 176 1,101
Other income 3,814,321 254,699 619,857 4,688,877
Total Investment Income 37,174,903 2,866,396 6,924,233 46,965,532
TOTAL ADDITIONS 58,912,860 3,430,953 6,937,065 69,280,878
DEDUCTIONS
Benefits 11,241,936 653,016 631,096 12,526,048
Administrative expenses 138,164 14,195 22,037 174,396
TOTAL DEDUCTIONS 11,380,100 667,211 653,133 12,700,444
CHANGES IN NET POSITION 47,532,760 2,763,742 6,283,932 56,580,434
NET POSITION - BEGINNING OF YEAR 132,288,002 9,734,615 24,654,510 166,677,127
NET POSITION - END OF YEAR 179,820,762$ 12,498,357$ 30,938,442$ 223,257,561$
Pension Trust LOSAP Trust OPEB Trust
Total Pension
and OPEB Trust
Funds
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
40
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Financial Reporting Entity
The primary government is the County Commissioners of Washington County, referred to
herein as the County or the County Commissioners. The County is governed by an elected
five-member board.
The accompanying financial statements are presented as of June 30, 2021 and for the year
then ended, and have been prepared in conformity with accounting principles generally
accepted in the United States of America applicable to local governments. The
Governmental Accounting Standards Board (GASB) is the standard setting body for
establishing governmental accounting and financial reporting principles, which are
primarily set forth in the GASB’s Codification of Governmental Accounting and Financial
Reporting Standards (GASB Codification).
Reporting Entity
The accompanying financial statements comply with the provisions of the GASB Standards
in that the financial statements include all organizations, activities, functions and
component units for which the County (the primary government) is financially accountable.
Financial accountability is defined as the appointment of a voting majority of a legally
separate organization’s governing body and either (1) the County’s ability to impose its
will over the organization, or (2) the potential that the organization will provide a financial
benefit to or impose a financial burden on the County.
Based on the foregoing, the County’s financial reporting entity includes all funds, agencies,
boards and commissions that are part of the primary government, and the component units
discussed below.
Blended Component Units - The Washington County Public Golf Corporation (Black Rock
Golf Course) is governed by a five-member board appointed by the County Commissioners.
Although it is legally separate from the County, the Washington County Public Golf
Corporation is reported as if it were part of the primary government because its sole purpose
is to operate the golf course which is owned by the County. Black Rock Golf Course is
reported as an enterprise fund.
Discretely Presented Component Unit - The component unit column in the government-
wide financial statements include the financial data of the County’s other component unit,
the Board of Education of Washington County (the Board, Board of Education or School
System.) The Board of Education is elected by the voters of Washington County. The
Board of Education operates the public schools in the County. The Board may not issue
debt or levy taxes. The County issues debt and levies taxes to provide capital and operating
funds to the Board. The State of Maryland also provides significant capital and operating
funds to the Board.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
41
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Reporting Entity (continued)
Complete financial statements of the discretely presented individual component unit can be
obtained from its administrative office:
Washington County Board of Education
10435 Downsville Pike
Hagerstown, Maryland 21740
Related Organizations - The County Commissioners are also responsible for appointing the
members of the boards of various other organizations, but the County’s accountability for
these organizations does not extend beyond making the appointments. Several of these
other organizations are funded by Federal or state governments.
Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the
statement of activities) report information on all of the non-fiduciary activities of the
primary government and its component units. For the most part, the effect of interfund
activity has been removed from these statements. Governmental activities, which normally
are supported by taxes and intergovernmental revenue, are reported separately from
business-type activities, which rely to a significant extent on fees and charges for support.
Likewise, the primary government is reported separately from certain legally separate
component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenue. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenue includes: 1)
charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment, and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among
program revenue are reported as general revenue.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter is excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
42
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Revenue is recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows.
Property taxes are recognized as revenue in the year for which they are levied. Grants and
similar items are recognized as revenue as soon as all eligibility requirements imposed by
the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenue is recognized as
soon as they are both measurable and available. Revenue is considered to be available
when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the government considers revenue to be
available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, income taxes, other local taxes, licenses, and interest associated with the
current fiscal period are all recognized as revenue of the current fiscal period.
The County’s pension plan’s financial statements are prepared using the accrual basis of
accounting. Plan member contributions are recognized in the period in which the
contributions are due. Employer contributions to each plan are recognized when due and
the employer has made a formal commitment to provide the contributions. Benefits and
refunds are recognized when due and payable in accordance with the terms of each plan.
The government reports the following major governmental funds:
The General Fund is the general operating fund of the County. It is used to account for
all financial resources except those required to be accounted for in another fund.
The Capital Projects Fund is used to account for financial resources to be used for the
acquisition or construction of major capital facilities in the governmental funds. The
Capital Projects Fund accounts for all capital improvements, which are financed by bond
issues, government grants, and transfers from the General and Special Revenue Funds.
Closed projects are capitalized in the appropriate fund.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
43
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(continued)
The government reports the following major proprietary funds:
The Water Quality Fund accounts for activities of the County’s sewage treatment
plants, sewage pumping stations and collection systems, and the water treatment plants
and distribution systems.
The Solid Waste Fund is used to account for activities related to the safe disposal of
solid waste, to meet all state, Federal, and county regulations and to provide for
recycling.
The Airport Fund is used to account for activities at the Hagerstown Regional Airport
that serves the air transportation and ancillary needs of the four-state region.
Additionally, the government reports the following fiduciary funds:
The County’s Pension Trust Fund is used to account for activities related to the
Employees’ Retirement Plan of Washington County.
The County’s Volunteer Length of Service Award Program Trust Fund (LOSAP) is
used to account for activities related to the eligible volunteers’ retirement, disability,
and death benefits.
The Other Post-employment Benefits Trust Fund (OPEB) is used to account for
activities related to the other post-employment benefit plan of Washington County.
As a general rule, the effect of interfund activity has been eliminated from the government-
wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and
other charges between the government’s water and sewer function and various other
functions of the government. Elimination of these charges would distort the direct costs and
program revenue reported for the various functions concerned.
Amounts reported as program revenue include: 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital
grants and contributions. Internally dedicated resources are reported as general revenue
rather than as program revenue. Likewise, general revenue includes all taxes.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
44
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(continued)
Proprietary funds distinguish operating revenue and expenses from non-operating items.
Operating revenue and expenses generally result from producing and delivering goods and
providing services and use of properties in connection with a proprietary fund’s principal
ongoing operations. The principal operating revenue of the enterprise funds are charges to
customers for sales and services. The Water Quality Fund also recognizes as operating
revenue the portion of connection fees intended to recover the cost of connecting new
customers to the system. Operating expenses for enterprise funds include the cost of sales
and services, administrative expenses, and depreciation of capital assets. All revenue and
expenses not meeting this definition are reported as non-operating revenue and expenses.
When both restricted and unrestricted resources are available for use, it is the government’s
policy to use restricted resources first, and then unrestricted resources as they are needed.
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires the County to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements, and the reported
amounts of revenue and expenses/expenditures during the reporting period. Actual results
could differ from those estimates.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g.,
roads, bridges, and similar items), are reported in the applicable governmental or business-
type activities columns in the government-wide financial statements. Capital assets are
defined by the County as assets with an initial, individual cost of $10,000 or greater for all
funds except for the Black Rock Golf Course and Public Transit Funds, which are $5,000.
All assets are recorded at historical cost or estimated historical cost, except for donated
capital assets which are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or do
not materially extend the life of the asset are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are
constructed.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
45
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Capital Assets (continued)
Property, plant, equipment and infrastructure assets of the primary government, as well as
the component units, are depreciated using the straight-line method over the following
estimated useful lives:
Land Improvements 15-50 years
Buildings and Improvements 10-40 years
Facilities 20-100 years
Vehicles 5-10 years
Infrastructure 10-100 years
Machinery and Equipment 5-20 years
Office Furniture and Equipment 5-10 years
Treatment Plants 25-100 years
Computer Equipment 5-10 years
Long-Term Obligations
In the government-wide financial statements and proprietary funds financial statements, long-
term debt and other long-term obligations are reported as liabilities in the applicable
governmental activities, business-type activities, and proprietary fund statements of Net
Position. Bond premiums and discounts are deferred and amortized over the life of the bonds
using the effective interest method. Bonds payable are reported net of the applicable bond
premium or discount.
In the fund financial statements, governmental funds recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is
reported as other financing sources. Premiums and discounts on debt issuances are reported as
other financing sources (uses). Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as capital outlay expenditures in the Capital Projects Fund.
Investments
Investments are stated at fair value based on quoted market values. Under the terms of
repurchase agreements, the excess cash from checking accounts is invested in short-term
investments. All deposits are insured by FDIC or a surety bond. Short-term investments in U.S.
Treasury and agency obligations that have remaining maturities of 90 days or less, provided
that the fair value of those investments is not significantly affected by impairment, are reported
at amortized cost, which approximates market value. Securities traded on a national or
international exchange are valued at the last reported sales price at current exchange rates.
Investments that do not have an established market are reported at estimated fair value.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
46
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Investments (continued)
Retirement plan investments are reported at fair value. Short-term investments are reported
at cost, which approximates fair value. Securities traded on a national or international
exchange are valued at the last reported sales price at current exchange rates. Investments
that do not have an established market are reported at estimated fair value.
Inventories
Inventories of the General Fund, Special Revenue Funds and Enterprise Funds consist of
expendable supplies held for consumption and items held for sale. These items are priced at
cost using the first-in, first-out method, or average costing.
Employee Benefit Programs
The County’s benefit program provides substantially all employees with group
hospitalization, life insurance, disability income protection, and retirement plans. The cost
of the retirement plans is accounted for in the General and Special Revenue Funds and in
the Enterprise Funds of the County.
There are two employee retirement plans for County employees. The County plans cover
all full-time employees other than those employed prior to July 1, 1972, who elected to
retain membership in the Maryland State Retirement System. The Board of Education
Retirement Plan is the Maryland State Retirement System. The assets of the County plans
are held by a trustee.
Retirement plan costs for members of the County Retirement Plan are determined annually
on an actuarial basis. Pension costs charged to expense equal the actuarially determined
contributions, calculated in accordance with GASB Statement No.68. The County follows
the practice of funding pension costs accrued.
Taxes and County Services
The County and its separate funds do not pay Federal, state or local taxes except social
security taxes. Except for certain limited reimbursements of administrative expenses and
employee benefits, the General Fund is not reimbursed by the other funds for general staff
services.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
47
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Real Estate and Personal Property Taxes
The County’s property tax is levied each July 1st, at rates enacted by the Board of County
Commissioners based on the total assessed value as determined by the Maryland State
Department of Assessments and Taxation. The rates of levy cannot exceed the constant yield
tax rate furnished by the Maryland State Department of Assessments and Taxation without
public notice and only after public hearings. A reassessment of all property is required to be
completed every three years.
Property taxes are levied as of July 1st, and a discount of one-half percent is granted for
property taxes paid by July 31st. Taxpayers also have the options of paying in full without
interest by September 30th, or paying their tax bills semi-annually. Taxpayers electing the semi-
annual method can pay the first installment without interest by September 30th. Beginning
October 1st, interest is charged. The second semi-annual payment, including a service charge, is
due by December 31st. Interest accrues at one percent monthly for delinquent property taxes.
Maryland law provides that unpaid real estate property taxes shall be a lien on the real property
from the date the taxes become payable. If real estate property taxes remain unpaid, the
collector shall sell the real properties at tax sale no later than two years from the date taxes are
in arrears. The County estate tax sale is held annually on the first Tuesday in the month of June.
Rate of County Taxes:
Income tax 3.0% of Maryland taxable income (calendar year 2022)
Recordation tax $3.80 per $500
Trailer park As of March 1, 2020, the County Commissioners reduced the tax to
7.5% of gross rentals, with a $20 per month per mobile home space
cap on the tax.
Property taxes $0.948 per $100 of assessable base
Cash Flows
For the purposes of the Statement of Cash Flows, the proprietary funds have defined cash
equivalents as all highly liquid deposits and other investment instruments that have a maturity
of three months or less.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
48
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Concentrations of Credit Risk
The County’s receivables consist of amounts due from County residents for property and other
taxes, utilities, and miscellaneous services fees and amounts due from the Federal and state
governments for grants and shared taxes. The Water Quality department provides sewage and
water services for residential, commercial, and other entities in the Washington County,
Maryland region. The department extends credit to its customers for sewer and water service
charges.
Net Position and Fund Equity
The difference between fund assets and liabilities is “Net Position” on the government-
wide, proprietary fund and fiduciary fund statements and “Fund Balance” on governmental
fund statements. Net Position is broken into categories and classified as “Net Investment in
Capital Assets,” legally “Restricted” for a specific purpose or “Unrestricted” and available
for appropriation for general purposes.
In the governmental fund financial statements, nonspendable and restricted fund balances
represent amounts that are legally restricted by outside parties for use for a specific purpose
or are otherwise not available for appropriation. Committed fund balance represents
amounts that are reserved for a particular purpose by the County Commissioners of
Washington County, and would require action by the Board to release the fund balance
from its commitment. Assigned fund balance represents tentative management plans that
are subject to change.
2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Budgetary Information
The County’s budget process is key to its long-range strategic plan. With the adoption
phase ending in May, the entire budget process encompasses nine months in preparation
time. Financial forecasts, economic trends, policy reviews, and citizen input are all part of
this process and result in the development of the operating and capital budgets for the year.
The following describes the budget process and procedures established by the County.
Budgets are adopted using the same basis of accounting as that used for reporting purposes.
Financial Capacity and Analysis Phase
The County develops statistical analysis of major revenue sources through various
resources available. The County prepares and annually updates a long-range financial
forecasting system which includes projections of revenue, expenditures, future costs,
financing of capital improvements that are included in the Capital Improvement Budgets,
Cost of Service Plans and the Operating Budget.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
49
2.STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (continued)
Budgetary Information (continued)
Financial Capacity and Analysis Phase (continued)
Revenue estimates are monitored to identify any potential trends, which would
significantly impact the various revenue sources. The County reviews current construction
trends, the number of building permits, mortgages rates, and other economic data that can
impact revenue collections.
The County uses other financial modeling techniques that impact the long-term operations
and rates for the Water Quality and Solid Waste Funds.
The County annually updates its financial ratio trends. Most of the financial trends include
peer group median and historical data. Trend indicators are tracked for specific elements of
the County’s fiscal policies for evaluation.
Debt capacity is evaluated on an annual basis prior to the adoption of the Capital
Improvement Budget. The County examines statistical measures and compares them to
other counties, rating agency standards, and Washington County’s historical measures to
determine debt affordability.
The economic and financial trend analysis is an integral part of the County’s decision-
making process that includes short and long-term forecasts. The County’s current financial
condition as well as future financial capacity, long-range plans, and future goals and
visions are evaluated. During this phase forecasting assumptions, policy and reserve
reviews, compensation adjustments, and inflation assumptions are made.
Budget Development Start
The development of the budget starts with the on-line release of operational budgets and
ten year capital improvement budget. The information distributed includes instructions on
completing the budgets, due dates, and updated information on budgetary numbers,
personnel positions, goals, and other pertinent information.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
50
2.STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (continued)
Budgetary Information (continued)
Budget Development Phase
Capital Improvement budget development begins in the winter after the development of the
debt capacity and financial trend and economic trend analysis. The Capital Improvement
Program (CIP) provides a comprehensive approach to planning and impacts all facets of
County operations. The County Administrator, the Chief Financial Officer, the Director of
Planning, the Director of Engineering, and the Director of Public Works comprise the Capital
Improvements Program Committee (CIP Committee). From the time the CIP’s initial annual
review begins in October through its adoption in May of each fiscal year, there is constant
interaction between departments, the CIP Committee, and the elected officials. This effort is
characterized by cooperation and reflects a common goal of ensuring that the CIP meets the
objectives of the County and remains affordable and achievable. The CIP is reviewed in
conjunction with the annual debt affordability analysis with revenue projections inclusive
of rate analysis, in order to determine funding availability. A financial analysis of funding
sources and project costs is conducted for all proposed capital improvement projects.
It is the CIP Committee’s responsibility to review all requests that County departments and
agencies submit. All projects are ranked based on established criteria for priority ranking.
Considering current and future needs as developed in the ten-year capital plan, and
available funding sources and the results of the priority ranking process, the CIP
Committee determines which capital projects best meet established criteria for the current
fiscal year Capital Improvement budget and the nine-year forecast. Operating impacts of
current and proposed capital projects are also taken into consideration by staff when
developing their Capital Improvement budget.
Operating budgets represent existing service levels and two years of prior historical
information. Departments and agencies request funding for the upcoming fiscal year. Any
increases in program and services require justification, as do all capital outlay requests.
These requests are summarized with projected funding shortfalls or overruns calculated.
Review and Modification Phase
The Chief Financial Officer presents the Operating and Capital Improvement budgets to the
County Commissioners. Preliminary recommendations are reviewed to ensure that
preliminary budgets address the County’s goals and fiscal management policies. The
County Administrator and the Chief Financial Officer work with the Commissioners on the
proposed budget documents for adoption.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
51
2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (continued)
Budgetary Information (continued)
Adoption Phase
Proposed budgets are voted on by the County Commissioners to take to a public hearing to
communicate to the general public for all operating and capital funds. The public hearing is
advertised in the local newspaper and on the County web site. A presentation and handouts
are prepared for the public.
Public hearings are held on the proposed budgets and the current tax levy. Local law
requires a balanced budget to be adopted by July 1.
Start Up
Department Managers are responsible for their budgets throughout the fiscal year.
Expenditure percentages are calculated and compared to the budget. Corrective action, if
necessary, is taken if serious negative trends exist. Management and the County
Commissioners have real-time budgeting reports available and provide quarterly updates
on the County’s website as well as updates on major events and/or issues.
Balanced Budget
Under County code, the County Commissioners’ annual budget shall have a figure for the
total of all appropriations and a figure for the total of all revenue available to pay the
appropriations. The figure for total appropriations may not exceed the figure for total
estimated revenue.
Costing of Services
In addition to accrual basis budgeting, several enterprise funds utilize a cost of service
approach. Cost of service is a method of accounting, which identifies both the cost of the
program and the portion of the cost that will be recovered through fees and charges. By
using this financial technique, the County is able to assess the true cost of providing a
service. Currently, water, sewer, and solid waste services use this approach to determine
cost and rates.
Amendment to the Budget
The County’s operating budgets are adopted at the program and service level and the
Capital Improvement budget is adopted at the project level. Transfers between programs or
projects in excess of $25,000 require County Commissioner’s approval.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
52
2.STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (continued)
Budgetary Information (continued)
Amendment to the Budget (continued)
The Chief Financial Officer reviews capital projects before any issuance of debt. Any
modifications to a project and/or the total debt to be issued based upon this review is
required to be approved by the County Commissioners either for an increase or decrease in
total borrowing amount or for a change in the total borrowing source.
The County maintains a cash and investment pool that is available for use by all funds, and
is displayed on the Statement of Net Position as “cash and short-term investments.”
Statutes authorize the County to invest in United States government bonds, obligations of
the Federal government or agencies, savings accounts in Maryland banks, repurchase
agreements and the Maryland Local Government Investment Pool.
3.CASH AND SHORT-TERM INVESTMENTS
Primary Government
Deposits
As of June 30, 2021, the carrying amount of the County’s deposits was $197,580,596 and
the bank balances were $200,259,869. All deposits are carried at cost plus accrued interest.
There were no significant violations of the collateralization requirements during the year
ended June 30, 2021. The County’s deposit policy specifies that all deposits must be
entirely covered by Federal depository insurance, deposit surety bond, or by collateral in
the form of pledged securities, according to state statute. In order to anticipate market
changes and provide a level of security for all funds, the collateralization level is required
to be at least 102% of market value of principal and accrued interest.
Custodial Credit Risk
Custodial credit risk is the risk that in the event of a bank failure, the County’s deposits
may not be returned. The County does not have a deposit policy for custodial credit risk.
As of June 30, 2021, the County’s bank balance of $200,259,869 was not exposed to
custodial credit risk as $250,000 of interest bearing accounts and $250,000 of noninterest
bearing accounts are insured by FDIC, $15,000,000 is covered by a short term line of
credit, and the remainder is collateralized through the Bank of New York Mellon.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
53
3. CASH AND SHORT-TERM INVESTMENTS (continued)
Primary Government (continued)
Investments
As of June 30, 2021, the County had the following investments and maturities.
Investment Type Fair Value Le ss than 1 1-5 6-10 More than 10
Total investments 226,934,824$ 226,934,824$ -$ -$ -$
Investment Maturities (in Years)
The County categorizes its fair value measurements within the fair value hierarchy
established by generally accepted accounting principles. The hierarchy is based on the
valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices
in active markets for identical assets; Level 2 inputs are significant other observable inputs;
Level 3 inputs are significant unobservable inputs. All of the County’s investments are
valued using quoted market prices (level 1 inputs).
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
54
3.CASH AND SHORT-TERM INVESTMENTS (continued)
Primary Government (continued)
Investments (continued)
Interest Rate Risk: As a means of limiting its exposure to fair value losses arising from
interest rates, the County’s investment policy specifies that funds shall be invested at all
times in keeping with the daily and seasonal pattern of the County’s cash balances, as well
as any other special factors or needs, in order to assure the availability of funds on a timely
and liquid basis. Cash flow projections will be monitored and updated on an ongoing basis
by the Budget and Finance Department and communicated regularly to the County
Administrator. On a periodic basis, the County will determine, based on cash flow
projections, what the appropriate average weighted maturity of the portfolio should be.
Unless matched to a specific cash flow, the County will not invest in securities maturing
more than three years from the date of purchase. Reserve funds may be invested in
securities exceeding three years if the maturities of such instruments precede or coincide
with the expected needs for funds and only with the prior approval of the Budget and
Finance Department.
The County’s Pension Plan Investment Policy states that the assets are to be managed for
total return, defined as dividend and interest income plus or minus capital gains and losses.
Investments shall be diversified so as to minimize the risk of unacceptable losses. The
portfolio is looked at as a whole rather than as individual securities. Investing for long term
(preferably longer than 10 years) becomes critical to investment success because it allows
the long-term characteristics of the asset classes to surface.
The table below summarizes the target asset class weighting, along with the allowable
ranges for each class.
Investment Type Range Target
Real Estate
Private Infrastructure
0-10%
0-10%
4%
4%
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
55
3. CASH AND SHORT-TERM INVESTMENTS (continued)
Primary Government (continued)
Investments (continued)
Credit Risk: It is the County’s investment policy to only invest in U.S. Government
Treasury obligations, agencies, and sponsored instrumentalities. Also the County’s
investment policy allows for investments in banks located in the State of Maryland
(Certificates of Deposit) with the exception of Bankers Acceptances. Commercial banks
must have a short-term rating of at least investment grade from the appropriate bank
rating agencies. Bankers’ Acceptances from domestic banks, which also include United
States affiliates of large international banks, must have a rating of Al from Standards and
Poor’s Corporation and P1 from Moody’s Investor Services. As of June 30, 2021, the
County’s investments were 100% in U.S. Treasury and Agency obligations and
certificates of deposit.
The County’s Pension Plan Investment Policy allows for investing in the following
investment types. Also, below is the benchmark used for rating each of the assets.
Investment
Type
Evaluation
Benchmark
Real Estate
Private Infrastructure
NCREIF ODCE
S&P Global Infrastructure
Custodial Credit Risk: For an investment, custodial credit risk is the risk that, in the
event of the failure of the counterparty, the County will not be able to recover the value
of its investments or collateral securities that are in the possessi on of an outside party.
As of June 30, 2021, none of the County’s investments are exposed to custodial credit
risk because they are held in the County’s name.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
56
3.CASH AND SHORT-TERM INVESTMENTS (continued)
Board of Education
Cash
Custodial Credit Risk: Maryland State Law prescribes that local government units, such as
the School System, must deposit its cash in banks transacting business in the State of
Maryland, and that such banks must secure any deposits in excess of Federal Deposit
Insurance Corporation (FDIC) insurance levels with collateral whose market value is at
least equal to the deposits. Any cash deposit exceeding the FDIC insurance level will
require collateralization. The FDIC coverage limits are applied to total noninterest bearing
accounts separately from interest-bearing accounts.
Compliance is summarized as follows:
June 30, 2021
Governmental
Activities and
Business-Type
Fiduciary
Responsibilities Total
Investments
Credit Risk: Maryland statutes authorize the School System to invest in obligations of the
United States government or agency obligations. As of June 30, 2021, the School System’s
operating investments in U.S Government Agencies were rated AAA and AA+ by Standard
& Poor’s. The School System’s fiduciary investments in fixed income mutual funds and
corporate bonds were not rated and rated A+, respectively, as of June 30, 2021.
Interest Rate and Custodial Risk: Investments are made in Federal government securities
without risk of loss due to market conditions. The Board’s investments, which include
uninsured and unregistered investments, are held by a bank’s trust department or agent in
the School System’s name. The Board’s policy is generally to require delivery of the
investments to a third-party custodian.
Foreign Currency Risk: Maryland law does not permit the School System to have or hold
any type of international investment vehicle.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
57
3. CASH AND SHORT-TERM INVESTMENTS (continued)
Board of Education (continued)
Investments (continued)
Retiree Health Plan Trust Investments: The investments of the MABE Trust are stated at
fair value, are deposited with Fidelity, and are managed by GYL Financial Synergies, LLC.
The MABE Trust categorizes its fair value measurements within the fair value hierarchy
established by GAAP. The hierarchy is based on the valuation inputs used to measure the
fair value asset. Level 1 inputs are quoted prices in active markets for identical assets;
Level 2 inputs are significant other observable inputs; Level 3 are significant unobservable
inputs. Although all investments of the MABE Trust are considered Level 1 and Level 2,
the School System’s membership in the MABE Trust is considered Level 2. As of June 30,
2021, the pooled net position of the MABE Trust was $589,129,491 in total, of which the
School System’s allocated investment balance was $106,934,040. The School System’s
allocated investments consist of the following:
The School System may terminate its membership in the MABE Trust and withdraw its
allocated investment balance by providing written notification six months prior to the
intended date of withdrawal.
Concentration of Credit Risk: The School System does not have a formal policy that places
a limit on the amount or percent that may be invested in any one issuer. More than 5% of
the School System’s Governmental Activities investments are investments in the Federal
Home Loan Bank, Federal Farm Credit Bank, Federal National Mortgage Association, and
Federal Home Loan Mortgage Corp. These investments are 14%,14%,15% and 15%,
respectively, of the Governmental Activities investments. More than 5% of the School
System’s General Fund investments are investments in the Federal Home Loan Bank,
Federal Farm Credit Bank, Federal National Mortgage Association, and Federal Home
Loan Mortgage Corp. These investments are 24%,24%,26% and 26%, respectively of the
General Fund investments.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
58
3.CASH AND SHORT-TERM INVESTMENTS (continued)
Board of Education (continued)
Investments (continued)
Market Risk: The School System’s investments are exposed to various risks, such as
interest rate, market, currency, and credit risks. Due to the level of risk associated with
certain investments and the level of uncertainty related to changes in the value of
investments, it is at least reasonably possible that changes in risks in the near term would
materially affect investment assets reported in the financial statements. Agency bonds are
not backed by the full faith and credit of the United States Government.
As of June 30, 2021, the School System had the following investments and maturities:
June 30, 2021
Governmental
Activities
Business-Type
Activities
Fiduciary
Responsibilities Total
Fair Value
Investment Type June 30, 2021 Less than 1 1-5 6-10 More than 10
Investment Maturities (in Years)
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
59
3. CASH AND SHORT-TERM INVESTMENTS (continued)
Board of Education (continued)
Investments (continued)
Investments and Fair Value – Investments are measured at fair value on a recurring basis in
accordance with the framework established by GASB Statement No. 72, “Fair Value
Measurement and Application”. That framework provides a fair value hierarchy that
prioritizes the inputs to valuation techniques used to measure fair value. The three levels of
the fair value hierarchy are described as below:
Level 1 – inputs to the valuation methodology are unadjusted quoted prices for identical
assets or liabilities in active markets that the School System has the ability to access.
Level 2 – inputs to the valuation methodology include quoted prices for similar assets or
liabilities in active markets or inactive markets; inputs other than quoted prices that are
observable for the asset or liability; or inputs that are derived principally from or
corroborated by observable market data by correlation or other means.
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair
value measurement.
Fair value of assets measured on a recurring basis as of June 30, 2021 are as follows:
Value (Level 1)(Level 2) (Level 3)
Mutual funds are valued using prices quoted in active markets for those securities. U.S.
government agency securities are valued using quoted market prices for similar securities.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
60
4.RECEIVABLES
Receivables as of year-end for the government’s funds, including the applicable allowances
for uncollectible accounts are as follows:
Net Total Receivables $ 2,288,508 $ 811,502 $ 386,289 $ 3,486,299
Net Total Receivables $ 1,098,160 $ 91,151 $ 31,167 $ 1,855 $ 1,222,333
Business-type Activities
Governmental Activities
General Non-Major
Capital
Projects Total
Water
Quality Solid Waste Airport Non-Major Total
Governmental funds report unavailable revenue in connection with receivables for
revenues that are not considered to be available to liquidate liabilities of the current period.
Governmental funds also record unearned revenue in connection with resources that have
been received, but not yet earned. As of the end of the current fiscal year unavailable
revenue for delinquent property taxes receivable reported in the General Fund was
$460,617. Receivables do not include various taxes collected by the State of Maryland on
behalf of the County, including income taxes. These amounts are included in Due From
Other Governmental Agencies.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
61
5.CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2021, was as follows:
Primary Government
Capital assets, not being depreciated:
Land 97,101,068$ 2,769,194$ (208,061)$ 99,662,201$
Capital assets, being depreciated:
Land improvements 15,584,369 1,156,419 - 16,740,788
Building and improvements 107,250,452 2,519,229 (98,376) 109,671,305
Vehicles 18,005,839 2,989,426 (1,239,187) 19,756,078
Infrastructure 1,197,904,471 8,230,711 (2,544) 1,206,132,638
Machinery and equipment 11,121,652 575,474 (121,499) 11,575,627
Office furniture and equipment 971,985 - (48,135) 923,850
Computer equipment 35,592,161 763,477 (492,124) 35,863,514
Total capital assets, being depreciated 1,386,430,929 16,234,736 (2,001,865) 1,400,663,800
Total Capital Assets 1,483,531,997 19,003,930 (2,209,926) 1,500,326,001
Accumulated depreciation for:
Land improvements (7,300,129) (510,016) - (7,810,145)
Building and improvements (43,417,898) (3,153,418) 51,938 (46,519,378)
Vehicles (12,953,408) (1,483,459) 1,236,244 (13,200,623)
Infrastructure (959,856,974) (8,747,337) 2,290 (968,602,021)
Machinery and equipment (6,774,329) (789,395) 121,499 (7,442,225)
Office furniture and equipment (917,614)(18,124) 48,136 (887,602)
Computer equipment (32,168,503) (1,124,650) 466,789 (32,826,364)
Total accumulated depreciation (1,063,388,855) (15,826,399) 1,926,896 (1,077,288,358)
Governmental Activities Capital Assets, Net 420,143,142$ 3,177,531$ (283,030)$ 423,037,643$
Projects Under Construction 20,172,581$ 20,482,757$ (13,488,032)$ 27,167,306$
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
62
5. CAPITAL ASSETS (continued)
Primary Government (continued)
Balance Balance
June 30, 2020 Additions Retirements June 30, 2021
Capital assets, not being depreciated:
Land 12,202,911$ -$ -$ 12,202,911$
Capital assets, being depreciated:
Land improvements 148,097,716 6,587,203 (1,626,046) 153,058,873
Building and improvements 63,644,403 8,979,035 (550,355) 72,073,083
Facilities 125,623,728 1,415,175 (60,224) 126,978,679
Vehicles 7,817,297 363,977 (254,107) 7,927,167
Machinery and equipment 13,400,375 2,072,442 (1,249,423) 14,223,394
Office furniture and equipment 272,987 - (27,124) 245,863
Computer equipment 2,470,934 21,078 - 2,492,012
Treatment plants 100,653,865 18,892 (14,321) 100,658,436
Total capital assets, being depreciated 461,981,305 19,457,802 (3,781,600) 477,657,507
Total Capital Assets 474,184,216 19,457,802 (3,781,600) 489,860,418
Accumulated depreciation for:
Land improvements (113,961,896) (6,513,873) 1,613,606 (118,862,163)
Building and improvements (24,941,741) (1,611,217) 230,363 (26,322,595)
Facilities (39,157,900) (1,673,216) 38,425 (40,792,691)
Vehicles (6,784,942) (361,363) 254,107 (6,892,198)
Machinery and equipment (10,594,659) (540,339) 1,112,943 (10,022,055)
Office furniture and equipment (272,988) - 27,125 (245,863)
Computer equipment (2,078,579) (62,290) - (2,140,869)
Treatment plants (29,829,062) (1,951,744) 10,591 (31,770,215)
Total accumulated depreciation (227,621,767) (12,714,042) 3,287,160 (237,048,649)
Business-type Activities Capital Assets, Net 246,562,449$ 6,743,760$ (494,440)$ 252,811,769$
Projects Under Construction 6,853,237$ 12,474,193$ (16,724,689)$ 2,602,741$
Business-type Activities:
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
63
5.CAPITAL ASSETS (continued)
Primary Government (continued)
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental Activities:
General Government 11,959,232$
Public Safety 2,521,653
Park, recreation and culture 367,853
Conservation of Natural Resources 28,133
Highways and streets 949,527
Total Depreciation Expense - Governmental Activities 15,826,398$
Business-Type Activities:
Total Depreciation Expense – Business-Type Activities 12,711,343$
Board of Education
Capital assets, not being depreciated:
Land 8,813,307$ 936,308$ $- $-9,749,615$
Facilities under construction 37,912,940 4,625,149 (40,608,491)-1,929,598
46,726,247 5,561,457 (40,608,491)-11,679,213
Capital assets, being depreciated:
Building and improvements 346,648,792 39,812,530 (1,537,623)-384,923,699
Furniture and equipment 60,245,591 1,428,271 (10,822,497)-50,851,365
Equipment under capital leases 51,428 - - - 51,428
406,945,811 41,240,801 (12,360,120) - 435,826,492
Accumulated depreciation:
Building and improvements (165,680,155) (7,926,606) 1,434,771 -(172,171,990)
Furniture and equipment (41,019,666) (3,803,253) 10,711,281 -(34,111,638)
Buildings and equipment under capital lease (12,812) (12,812) - - (25,624)
(206,712,633) (11,742,671) 12,146,052 - (206,309,252)
Governmental Activities Capital Assets, Net 246,959,425$ 35,059,587$ (40,822,559)$ -$ 241,196,453$
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
64
5. CAPITAL ASSETS (continued)
Board of Education (continued)
Capital assets, being depreciated:
Furniture and equipment 5,459,545$ 32,281$ (333,745)$ 5,158,081$
Accumulated depreciation:
Furniture and equipment (3,892,223) (301,434) 312,557 (3,881,100)
Business-type Activities Capital Assets, Net 1,567,322$ (269,153)$ (21,188)$ 1,276,981$
Depreciation expense was charged to the functions/programs of the Board as follows:
Governmental activities:
Other instructional costs 1,994,336$
Student transportation services 1,485,124
Operation of plant 191,100
Depreciation - unallocated 8,072,111
11,742,671$
Business-type activities:
301,434$
6. INTERFUND RECEIVABLES AND PAYABLES
Outstanding balances between funds are reported as “due to/from other funds” and are the
result of the County’s central cash management and disbursement system. Other activity
between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are also referred to in the fund statements as “due to/from other
funds.”
Receivable Fund Payable Fund Amount
Total 636,410$
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
65
6.INTERFUND RECEIVABLES AND PAYABLES (continued)
Board of Education
Component unit - Board of Education Primary government - capital projects $ 4,757
All interfund receivables and payables are without interest.
7.INTERFUND TRANSACTIONS
During the course of normal operations, the County has numerous transactions between
funds. Usually these transfers are undertaken to enable the receiving funds to provide
services that the government has determined to be in the best interest of the County.
Transfers are reported as “Other Financing Sources (Uses)” in the governmental funds
and as “Operating Transfers” or “Capital Transfers” in the enterprise funds. A summary
of transfers follows:
Operating Operating Capital Capital
Fund Transfers In Transfers Out Transfers In Transfers Out
General Fund:
Capital Projects -$ -$ -$ 32,109,994$
Highway Fund - - - 500,000
Solid Waste - 496,080 - -
Public Transit - 699,760 - -
Water Quality - 341,275 - -
Grant Management - 273,080 - -
Agricultural Education Center - 199,610 - -
Golf Course - 337,840 - -
HEPMPO - 9,750 - -
Land Preservation - 35,440 - -
Airport - -- -
Cascade Town Centre - 150,000 - -
Capital Projects Fund:
General Fund - - 32,109,994 -
Highway Fund - - 500,000 -
Airport Fund - - - 139,000
Water Quality - - - 241,878
Hotel Rental Fund - - - 239,000
Golf Course - - - 66,000
Transit - - - 54,000
Land Preservation - - - 400,000
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
66
7. INTERFUND TRANSACTIONS (continued)
Solid Waste:
General Fund 496,080 - - -
Public Transit:
General Fund - 17,950 - -
HEPMPO - - 54,000 -
Capital Projects - - - -
Water Quality:
General Fund 341,275 - - -
Capital Projects - - 241,878 -
Airport:
General Fund 699,760 - - -
Hotel Rental - 24,747 - -
Capital Projects - - 139,000 -
Golf Course:
General Fund 337,840 - - -
Capital Projects - - 66,000 -
Grant Management:
General Fund 273,080 - - -
Agricultural Education Center:
General Fund 199,610 - - -
HEPMPO:
General Fund 9,750 - - -
Public Transit Fund 17,950 - - -
Hotel Rental:
Capital Projects - - 239,000 -
Airport 24,747 - - -
Cascade Town Centre - - - -
Land Preservation:
General Fund 35,440 - - -
Capital Projects Fund - - 400,000 -
Cascade Town Centre
General Fund 150,000 - - -
Total 2,585,532$ 2,585,532$ 33,749,872$ 33,749,872$
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
67
8.LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS
Primary Government
The County issues general obligation bonds to provide funds for the acquisition and
construction of major capital facilities. General obligation bonds have been issued for both
governmental and business-type activities. General obligation bonds are direct obligations
and pledge the full faith and credit of the County. These bonds generally are issued as 20-
year serial bonds with different amounts of principal maturing each year. General
obligation bonds and capital lease obligations currently outstanding are as follows:
Interest Beginning Ending Due Within
Rate Balance Additions Reductions Balance One Year
Governmental Activities
Public Sale Bonds payable:
General obligation bonds 1.4-5.5% 141,346,216$ 24,257,506$ 23,924,284$ 141,679,438$ 9,769,489$
7,482,039 1,753,549 1,184,318 8,051,270 -
148,828,255 26,011,055 25,108,602 149,730,708 9,769,489
Other loans payable
Direct Borrowing: Maryland Water Quality loans 1.0%2,476,571 - 276,011 2,200,560 514,890
Total bonds and loans payable 151,304,826 26,011,055 25,384,613 151,931,268 10,284,379
Direct Borrowing: Agricultural Land Preservation 3.0%1,123,772 - 181,779 941,993 181,779
Capital lease obligations 3.2%342,851 385,579 284,757 443,673 122,502
Net pension liability 118,758,533 - 37,542,516 81,216,017 -
271,529,982 26,396,634 63,393,665 234,532,951 10,588,660
Business-type Activities
Public Sale Bonds payable:
General obligation bonds 1.4-5.9%36,968,784$ 5,327,494$ 7,595,716$ 34,700,562$ 2,145,511$
2,950,030 216,650 389,276 2,777,404 -
- - - - -
39,918,814 5,544,144 7,984,992 37,477,966 2,145,511
Other loans payable:
Direct Borrowing: Maryland Water Quality loans .40-1.7%7,689,125 - 1,027,112 6,662,013 1,484,986
Total bonds and loans payable 47,607,939 5,544,144 9,012,104 44,139,979 3,630,497
Capital lease obligations 4.1%41,932 1,672,362 398,114 1,316,180 314,866
47,649,871 7,216,506 9,410,218 45,456,159 3,945,363
Total Combined Activities
Long-term Liabilities 319,179,853$ 33,613,140$ 72,803,883$ 279,989,110$ 14,534,023$
Board of Education 7.17%39,532$ -$ 8,881$ 30,651$ 9,518$
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
68
8. LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS (continued)
Primary Government (continued)
Summary of remaining debt service requirements for the years ended June 30, are as
follows:
2022 9,769,489$ 4,570,184$ 514,890$ 22,005$ 2,145,511$ 1,113,996$ 1,484,986$ 49,521$
2023 10,081,595 4,293,862 553,317 16,856 2,278,406 1,024,167 1,576,367 37,733
2024 10,550,959 3,870,614 278,877 11,324 2,274,041 928,588 379,213 24,973
2025 10,559,841 3,480,103 281,666 8,534 2,305,160 836,300 319,984 21,553
2026 10,168,068 3,092,255 284,483 5,718 2,371,932 744,387 225,537 18,711
2027-2031 43,741,473 10,455,959 287,327 2,875 11,463,521 2,561,111 1,491,347 68,182
2032-2036 31,936,037 4,203,220 - - 7,183,963 1,113,999 1,036,985 29,093
2037-2041 14,183,003 765,810 - - 2,677,001 353,198 147,594 1,551
2042-2051 688,973 6,891 - - 2,001,027 228,784 - -
Total 141,679,438$ 34,738,898$ 2,200,560$ 67,312$ 34,700,562$ 8,904,530$ 6,662,013$ 251,317$
Plus:
Unamortized premium 8,051,270 2,777,404
149,730,708$ 37,477,966$
The County Commissioners have received bonding authority from the State Legislature to
issue public facilities bonds for the purpose of financing various capital projects. As of
June 30, 2021, the unused authorization was $49,640,096.
Conduit Debt
From time to time, the County has issued Industrial Revenue Bonds to provide financial
assistance to private-sector entities for the acquisition and construction of industrial and
commercial facilities deemed to be in the public interest. The bonds are secured by the
property financed and are payable solely from payments received in the underlying mortgage
loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the
private-sector entity served by the bond issuance. Neither the County, the State, nor any
political subdivision thereof is obligated in any manner for repayment of the bonds. In
accordance with governmental accounting standards, the bonds are not reported as liabilities
in the accompanying financial statements. As of June 30, 2021, there were Industrial
Revenue Bonds outstanding with an aggregate principal amount payable of $137,349,217.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
69
8.LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS (continued)
Primary Government (continued)
Agricultural Land Preservation Installments
The County has entered into installment contracts to purchase easements for agricultural
land preservation purposes. Under the terms of the installment contracts, the County pays
the property owner annual interest and principal payments over the ten-year term of the
contract. The primary source of revenue for repayment of the indebtedness is a portion of
the transfer tax on all transfers of real property in the County. The annual requirements to
amortize agricultural preservation installments outstanding as of June 30, 2021, are as
follows:
As of Total
June 30,Principal Interest Requirement
2022 181,779$ 18,840$ 200,619$
2023 181,779 15,204 196,983
2024 181,779 11,569 193,348
2025 181,779 7,933 189,712
2026 181,779 4,297 186,076
Thereafter 33,098 662 33,760
Total 941,993$ 58,505$ 1,000,498$
For the year ended June 30, 2021, total principal and interest incurred related to agricultural
land preservation installments was $181,779 and $22,475, respectively.
Capital Leases
On May 30, 2017, a capital lease agreement was entered into for equipment. The lease calls
for 5 annual lease payments of $239,333 of which $221,008 will be from the General Fund
and a final lease payment of $1. Payments commenced May 30, 2017, with the final
payment of $1 on May 30, 2022. On July 6, 2017, a capital lease agreement was entered
into for equipment. The lease calls for 5 annual lease payments of $56,905 and a final lease
payment of $3. Payments commenced on September 28, 2017, with the final payment of $3
due September 30, 2022. On July 25, 2018, the General Fund entered into a capital lease
agreement for equipment. The lease calls for quarterly lease payments of $4,444 through
August 14, 2021. Payments commenced September 14, 2018. In March 2021 a new lease
agreement was signed that commences after the expiration of the current lease. The new
lease calls for quarterly payments of $7,091 through August 14, 2024. Payments commence
November 14, 2021. On May 24, 2021, a capital lease agreement was entered into for
vehicles. The lease calls for 6 annual lease payments of $57,045. Payments commence July
1, 2021, with the final payment on July 1, 2026. The future minimum lease payments under
these agreements are as follows:
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
70
8. LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS (continued)
Primary Government (continued)
Capital Leases (continued)
Year ending June 30,Amount
On May 30, 2017, a capital lease agreement was entered into for equipment. The lease
calls for 5 annual lease payments of $239,333 of which $18,325 will be from the Water
Quality Fund and a final lease payment of $1. Payments commenced May 30, 2017 with
the final payment of $1 on May 30, 2022. The future minimum payments under this
agreement are as follows:
Year ending June 30,Amount
On October 21, 2020, the Solid Waste fund entered into a capital lease agreement for
equipment. The lease calls for 5 annual lease payments of $254,946 and a final lease
payment of $2. Payments commenced November 17, 2020, with the final payment on
November 17, 2024. On March 1, 2021, the Solid Waste fund entered into a capital lease
agreement for a vehicle. The lease calls for 5 annual lease payments of $101,237 and a
final lease payment of $1. Payments commenced March 24, 2021, with the final payment
on March 24, 2025. The future minimum payments under this agreement are as follows:
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
71
8.LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS (continued)
Primary Government (continued)
Capital Leases (continued)
Year ending June 30,Amount
The following is an analysis of the capital assets acquired under capital leases as of
June 30, 2021.
Net Book Value
2021
Total 4,172,276$ 805,395$ 3,366,881$
Capitalized
Amount
Accumulated
Depreciation
Board of Education
The Board of Education has various capital lease agreements for certain building data
processing and communications equipment. Information for assets acquired from capital leases
is not available. The future minimum payments under these agreements are as follows:
Year ending June 30,Amount
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
72
8. LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS (continued)
Primary Government (continued)
Advance Refunding
In prior years, the County has partially defeased certain bonds by placing the proceeds of
new bonds in an irrevocable trust to provide for certain future debt service payments on the
old bonds. Accordingly, the trust account assets and the liability for the partially defeased
bonds are not included in the County’s financial statements. As of June 30, 2021,
$18,545,000 of long-term obligations outstanding are considered defeased.
9. OPERATING LEASE AGREEMENTS
Primary Government
During fiscal year 2004, the County entered into a lease agreement whereby the lessee
constructed a building and improvements on land owned at the Airport. The total cost of
the building and improvements was capitalized as an asset in the Airport Fund with an
estimated useful life of 40 years. As of June 30, 2004, the building and improvements were
estimated at $2,500,000. During the year ended June 30, 2005, a revised cost was obtained
reducing the value to $2,000,000. The $500,000 adjustment was recorded as a reduction to
fixed assets and deferred inflow of resources in the June 30, 2005, financial statements. The
terms of the original agreement which began June 30, 2004, allowed the lessee to use the
property for a period of 25 years, with no additional payments due. During fiscal year
2006, this lease was amended with lease terms extended to 31 years and additional building
and improvements valued at $1,800,000 were capitalized as an asset in the Airport Fund
with an estimated useful life of 40 years. During fiscal year 2009, a second amendment to
the lease agreement allowed for additional building and improvements valued at $400,000
and an extension of the lease through December 31, 2042. The addition was capitalized as
an asset in the Airport Fund with an estimated useful life of 40 years. Deferred inflow of
resources in the amount of $2,500,000 was recorded in the Airport Fund at the inception of
this lease but was adjusted down to $2,000,000 during year ended 2005, and was to be
recognized as rental income over the original 25 year term of the lease. Since the
amendments extending the lease term and the additional capitalization of building and
improvements, the remaining deferred inflow of resources of $3,587,724 as of June 30,
2010, will be amortized over 33 years. The terms of the agreement as amended in fiscal
year 2009, allow the lessee to use the property for a period of 33 years. The terms of the
lease agreement require that the lessee pay the County annual rent of $5,250 beginning
May 1, 2006, with an annual increase of 4% each May 1st thereafter. The lease also
requires that the County credit the lessee $127,500 for the lessee’s incurred costs in
excavating the site for the addition. The agreement allows an option for the lessee to
continue the lease past the 33-year term at a rental payment equal to the fair market rental
value of the leased property at that time.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
73
9.OPERATING LEASE AGREEMENTS (continued)
Primary Government (continued)
During fiscal year 2006, the County entered into a lease agreement whereby the lessee
constructed a building and improvements on land owned at the Airport. The total cost of
the building and improvements was $3,100,000, which was capitalized as an asset in the
Airport Fund with an estimated useful life of 40 years on June 30, 2006. The terms of the
agreement which began June 30, 2006, allow the lessee to use the property for a period of
39 years (primary terms). The terms of the lease agreement require that the lessee pay the
County annual rent of $5,200 during the primary terms of the lease with an annual increase
of 3% each year. The agreement allows an option for the lessee to continue the lease past
the 39-year term at a rental payment equal to the fair market rental value of the leased
property at that time. Deferred inflow of resources in the amount of $3,100,000 was
recorded in the Airport Fund at the inception of the lease.
During fiscal year 2007, the County entered into a lease agreement whereby the lessee
constructed a building and improvements for $5,500,000, which was capitalized as an asset
in the Airport Fund with an estimated useful life of 40 years on June 30, 2007. The terms of
the agreement, which began December 1, 2006, allow the lessee to use the property for a
period of 39 years (primary terms). The terms of the lease agreement require that the lessee
pay the County annual rent of $15,750 during the primary terms of the lease with an annual
increase of 4% each year. The agreement allows an option for the lessee to continue the
lease past the 39-year term at a rental payment equal to the fair market rental value of the
leased property at that time. Deferred inflow of resources in the amount of $5,500,000 was
recorded in the Airport Fund on June 30, 2007.
During fiscal year 2010, the County entered into a lease agreement whereby the lessee
constructed a building and improvements for $3,000,000, which was capitalized as an asset
in the Airport Fund with an estimated useful life of 40 years on June 30, 2010. The terms of
the agreement, which began June 1, 2009, allow the lessee to use the property for a period
of 39 years (primary terms). The terms of the lease agreement require that the lessee pay
the County annual rent of $13,208 during the primary terms of the lease with an annual
increase of 4% each year. Deferred inflow of resources in the amount of $3,000,000 was
recorded in the Airport Fund on June 30, 2010.
During fiscal year 2010, the County entered into a lease agreement whereby the lessee
constructed a building and improvements for $3,800,000, which was capitalized as an asset
in the Airport Fund with an estimated useful life of 40 years on June 30, 2010. The terms of
the agreement, which began November 1, 2009, allow the lessee to use the property for a
period of 39 years (primary years). The terms of the lease agreement require that the lessee
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
74
9. OPERATING LEASE AGREEMENTS (continued)
Primary Government (continued)
pay the County annual rent of $17,000 during the primary terms of the lease with an annual
increase of 4% each year. The lease also requires that the County credit the lessee $250,000
for the lessee’s incurred costs in site preparation and excavation costs. The agreement
allows for an option for the lessee to continue the lease past the 39 year term at a rental
payment equal to the fair market rental value of the leased property at that time. Deferred
inflow of resources in the amount of $3,800,000 was recorded in the Airport Fund as of
June 30, 2010.
During fiscal year 2011, the County entered into a lease agreement whereby the lessee
constructed a building and improvements for $4,500,000, which was capitalized as an asset
in the Airport Fund with an estimated useful life of 40 years on June 30, 2011. The terms of
the agreement, which began July 1, 2010, allow the lessee to use the property for a period
of 39 years (primary years). The terms of the lease agreement require that the lessee pay the
County annual rent of $15,985 during the primary terms of the lease with an annual
increase of 4% each year. The agreement allows for an option for the lessee to continue the
lease past the 39 year term at a rental payment equal to the fair market rental value of the
leased property at that time. Deferred inflow of resources in the amount of $4,500,000 was
recorded in the Airport Fund as of June 30, 2011.
During fiscal year 2013, the County entered into a lease agreement whereby the lessee
constructed a building and improvements for $2,000,000, which was capitalized as an asset
in the Airport Fund with an estimated useful life of 40 years on June 30, 2013. The terms of
the agreement, which began January 1, 2013, allow the lessee to use the property for a
period of 30 years (initial term) with no payments due during the first five years of the
initial term of the lease. The terms of the lease agreement require that the lessee pay the
County annual rent of $23,357 during the initial term of the lease with an annual increase
of 2% each year. The agreement allows for an option for the lessee to continue the lease
past the 30 year term at a rental payment equal to the fair market rental value of the leased
property at that time. Deferred inflow of resources in the amount of $2,000,000 was
recorded in the Airport Fund as of June 30, 2013.
During fiscal year 2014, the County entered into a lease agreement whereby the lessee
constructed a building and improvements for $5,500,000, which was capitalized as an asset
in the Airport Fund with an estimated useful life of 40 years on June 30, 2014. The terms
of the agreement, which began November 1, 2013, allow the lessee to use the property for a
period of 39 years (primary term). The terms of the lease agreement require that the lessee
pay the County annual rent of $13,881 during the primary term of the lease with an annual
increase of 2% each year. The agreement allows an option for the lessee to continue the
lease past the 39 year term at a rental payment equal to the fair market rental value of the
leased property at that time. Deferred inflow of resources in the amount of $5,500,000 was
recorded in the Airport Fund on June 30, 2014.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
75
9.OPERATING LEASE AGREEMENTS (continued)
Primary Government (continued)
During the year ending June 30, 2021, rental income for the above leases of $921,571 was
recognized in the Airport Fund.
On January 1, 2006, the County entered into an agreement with Spirit Services, Inc. of
Washington County to lease and operate the Conococheague Industrial Pretreatment
Facility. In November 2019, Spirit Services, Inc. sold the assets of its Maryland operations
to Valicor Environmental Services, LLC, a nationally recognized leader in industrial
wastewater treatment operations. Under the lease agreement and assignment, Valicor
Environmental Services, LLC., has exclusive control and management of the pretreatment
facility and assumes all responsibility for utility and maintenance expenses.
The term of the lease runs for a period of 99 years with fixed monthly rent payments of
$28,800. During the year ended June 30, 2021, outsourcing revenue of $345,600 was
recognized in the Water Quality Fund.
On March 1, 2021, Black Rock Golf Course entered into a new lease for golf carts. The
agreement calls for monthly lease payments of $7,471 payable from April through
November each year. The lease term is for three years commencing on March 1, 2021.
Total lease payments for the year ended June 30, 2021, were $67,572.
10.UNUSED VACATION AND SICK LEAVE
Primary Government
The County accrues accumulated unpaid vacation and sick leave and associated employee-
related costs when earned or estimated to be earned by the employee. The accrual of
vacation leave is based upon individual salary rates in effect as of June 30, 2021, and is
capped at 250 hours. The accrual of sick leave is based on payment upon retirement at a
rate of $10 per day for each unused sick leave day up to a total of 130 days. Total unpaid
vacation and sick leave accrued as of June 30, 2021, was $3,699,440 and $678,027,
respectively. Unused vacation and sick leave will be liquidated by the respective
government and enterprise funds where the current employee costs are recorded.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
76
10. UNUSED VACATION AND SICK LEAVE (continued)
Board of Education
The School System accrues accumulated unpaid vacation and sick leave and associated
employee-related costs when earned or estimated to be earned by the employee. The
accrual of vacation leave is based upon individual salary rates in effect as of June 30. The
accrual of sick leave is based on payment upon retirement at rates set forth in the various
negotiated agreements. Sick leave is estimated to be earned once an employee has obtained
15 years of service or 55 years of age. Total unpaid vacation and sick leave accrued at June
30, 2021 amounted to $6,904,726. At June 30, 2021 $466,722 is considered payable with
current resources and is included in accrued liabilities in the governmental fund level
financial statements. This amount represents the pending payouts of unused leave owed to
employees separated from active service as of the year ended June 30, 2021. The remaining
amounts are estimated to be used in subsequent fiscal years, are maintained separately and
represent a reconciling item between the fund and government-wide financial statement
presentations.
11. RETIREMENT PLANS
Primary Government
Plan Description
The County Commissioners of Washington County Employees’ Retirement Plan (the Plan)
is a single-employer defined benefit pension plan established by the County
Commissioners effective July 1, 1972, and adopted by ordinance. The County
Commissioners have the power and authority to establish and amend the benefit provisions
of the Plan. The Plan provides retirement benefits to Plan members.
Effective January 1, 1986, members are qualified to participate in the Plan if they are
compensated on the basis of working at least 40 hours per week and 12 months in a
calendar year. Participation classification is based on the employee’s status as either
“uniformed” or “non-uniformed’. A uniformed employee may retire at the earlier of age 50
or 25 years of service. A non-uniformed employee may retire at the earlier of age 60 or 30
years of eligibility service. Vesting begins after 5 years of service. Retirement benefits for
uniformed employees are calculated by a formula and provide approximately 50% of
average pay after 25 years. Non-uniformed employees retirement benefits provide
approximately 60% of average pay after 30 years of service.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
77
11.RETIREMENT PLANS (continued)
Primary Government (continued)
Plan Description (continued)
Effective July 1, 2013 the Employees’ Retirement Plan was amended. The amendment
affected only non-uniformed employees. Non-uniformed employees were required to make
an election to either remain under the former plan provisions or opt to participate under the
new rules. For employees electing to remain under the former plan rules, a non-uniformed
employee may retire at the earlier of age 60 or 30 years of eligibility service. Non-
uniformed employees retirement benefits provide approximately 60% of average pay after
30 years of service. Non-uniformed employees may take early retirement with reduced
benefits at 25 years of service.
Under the amended plan a non-uniformed employee may retire at the earlier of age 60 or
25 years of service. Retirement benefits would provide approximately 50% of average pay
after 25 years. There is no longer an early retirement option.
Employees hired after September 1, 2013 are required to participate in the amended plan.
The net pension liability by plan is as follows:
Total 80,962,784$
Investments
The County’s Pension Plan Investment Policy states that the assets are to be managed for
total return, defined as dividend and interest income plus or minus capital gains and losses.
Investments shall be diversified so as to minimize the risk of unacceptable losses. The
portfolio is looked at as a whole rather than as individual securities. Investing for long term
(preferably longer than 10 years) becomes critical to investment success because it allows
the long-term characteristics of the asset classes to surface. The table below summarizes
the target asset class weighting, along with the allowable ranges for each class.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
78
11. RETIREMENT PLANS (continued)
Primary Government (continued)
Investments (continued)
Investment Type Range Target
Real Estate
Private Infrastructure
0-10%
0-10%
4%
4%
Funding Policy
The contribution requirements of Plan members and the County are established and may be
amended by the County Commissioners. Under the amended plan, all plan members are
required to contribute 6%. Non-uniformed employees electing to remain under the old plan
are required to contribute 5.5%.
All information that follows for the Plan is measured as of June 30, 2021, which is the
latest actuarial report available.
Membership of the Plan
The membership consisted of the following as of June 30, 2021, the date of the latest
actuarial valuation:
Total 1,308
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
79
11.RETIREMENT PLANS (continued)
Primary Government (continued)
Actuarial Assumptions
The long-term expected rate of return on pension plan investments was determined using a
standard building block approach. These ranges are combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by the target asset
allocation percentage and adding expected inflation. Best estimates of arithmetic assumed rates
of return for each class included in the pension plans’ general target asset allocation as of June
30, 2021 is as follows:
Asset Class Target Allocation
Long-Term
Expected Real
Rate of Return
Total 100%
Annual Pension Cost and Net Pension Obligation
The total pension liability for the current year was determined as part of the June 30, 2021,
actuarial valuation using the projected unit credit cost method. The actuarial assumptions
included (a) 7.25% investment rate of return (net of administrative expenses) including inflation,
and (b) projected salary increases which vary by participant service. The actuary was using the
RP-2014 adjusted Total Dataset with Generational projection using scale MP-2015. The
assumptions did not include postretirement benefit increases. The actuarial value of assets was
determined by the market value of investments.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
80
11.RETIREMENT PLANS (continued)
Primary Government (continued)
Net Pension Liability
The net pension liability is equal to the total pension liability minus the net position of the
plan. The result as of June 30, 2021 is as follows:
Net position as a percentage of total pension liability is 68.89%.
Sensitivity of the net pension liability to changes in the discount rate
The following presents the net pension liability of the Plan, calculated using a discount rate
of 7.25% as well as what the Plan’s net pension liability would be if it were calculated
using a discount rate that is 1-percentage point lower (6.25%) or 1-percentage point higher
(8.25%) than the current rate:
1.0% decrease
6.25%
Current rate
7.25%
1.0% increase
8.25%
Deferred Outflows of Resources and Deferred Inflows of Resources
For the year ended June 30, 2021, the County recognized pension expense of $13,740,039
for the Plan. As of June 30, 2021, the County reported deferred outflows of resources and
deferred inflows of resources related to the Plan from the following sources:
Total 619,571$ 21,300,828$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
81
11. RETIREMENT PLANS (continued)
Primary Government (continued)
Deferred Outflows of Resources and Deferred Inflows of Resources (continued)
The above amounts reported as deferred outflows of resources and deferred inflows of
resources related to the Plan will be recognized in the pension expense as follows:
Years Ended June 30, Amount
2022 (4,880,525)$
2023 (4,590,689)
2024 (4,989,372)
2025 (5,992,639)
2026 (228,032)
Total (20,681,257)$
Board of Education
Plan Description
The employees of the Board are covered by the Maryland State Retirement and Pension
System (the System), which is a multiple-employer cost sharing employer defined benefit
public employee retirement system. While there are five retirement and pension systems
under the System, employees of the Board are a member of either the Teachers’ Retirement
and Pension Systems or the Employees’ Retirement and Pension Systems. The Plans are
administered by the State Retirement Agency. The System was established by the State
Personnel and Pensions Article of the Annotated Code of Maryland to provide retirement
allowances and other benefits to State employees, teachers, police, judges, legislators, and
employees of participating governmental units. Responsibility for the System’s
administration and operation is vested in a 15-member Board of Trustees. The System
issues a publicly available financial report that can be obtained at
http://www.sra.state.md.us. The System provides retirement allowances and other benefits
to State teachers and employees of participating governmental units, among others. The
School System participates in the Maryland Teachers’ Retirement System (TRS), the
Maryland Teachers’ Pension System (TPS), the Maryland State Employee’s Retirement
System (ERS), and the Maryland State Employee’s Pension System (EPS). Eligible
professional and clerical personnel are covered under TRS or TPS. Eligible maintenance,
custodial, and food service personnel are covered under ERS or EPS.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
82
11.RETIREMENT PLANS (continued)
Board of Education (continued)
Benefits Provided
Maryland Teacher’s Retirement System (TRS): Under TRS, the members are eligible for
full service retirement allowances upon attaining age 60 or upon accumulating 30 years of
eligible service regardless of age. The retirement allowance is 1/55th of average final
compensation for the three highest years as a member for each year of creditable service.
Creditable service is based on a full normal working time for teachers – ten months equals
one year. TRS members are eligible for early service retirement allowances upon
accumulating at least 25 years prior to attaining age 60. The service retirement allowance is
reduced by 0.005 for each month that date of retirement proceeds the earlier of age 60 or
the date the member would have completed 30 years of eligibility service. The maximum
reduction is 30%.
They are also eligible for ordinary disability retirement allowance upon completing five
years of eligibility service and receiving certification from the Medical Board that they are
permanently incapable of performing their necessary job function. The ordinary disability
benefit is 1/55th of average final compensation for the three highest years as a member for
each of creditable service. The minimum benefit is 25% of average final compensation; the
maximum benefit can be not greater than 1/55th of average final compensation for each
year of creditable service the member would have accrued if employment continued to age
60. TRS members are eligible for accidental disability benefits if the Medical Board
certifies that, in the course of job performance and as the direct result of an accidental
injury, they become totally and permanently disabled. The accidental disability benefit is
equal to 66 2/3% of the employee’s average final compensation for the three highest
consecutive years as a member plus the annuity provided by accumulated member
contributions but cannot be greater than the average final compensation.
To be eligible for death benefits under the TRS plan, members must have either
accumulated at least one year of eligible service prior to date of death or died in the line of
duty. Such benefits consist of a one-time lump sum payment equal to the member’s annual
earnable compensation at the time of death, plus accumulated member contributions.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
83
11. RETIREMENT PLANS (continued)
Board of Education (continued)
Benefits Provided (continued)
Maryland Teacher’s Pension System (TPS): Under TPS, there are two membership classes.
All employees who were members on or before June 30, 2011, participate in the Alternate
Contributory Pension Selection (ACPS) and all employees who enroll after July 1, 2011
participate in the Reformed Contributory Pension Benefit (RCPB). ACPS members qualify
for normal retirement benefits upon (a) completing 30 years of eligible service, (b)
reaching 62 with 5 years of eligible service, (c) reaching age 63 with 4 years of eligible
service, (d) reaching age 64 with 3 years of eligible service, or (e) reaching age 65 or older
with 2 years of eligible service. ACPS members are eligible for early retirement benefits
after attainment of the age 55 with at least 15 years of eligible service. RCPB members
qualify for normal retirement benefits when they attain a combined age and eligibility
service of 90 years or after reaching age 65 with 10 years of eligible service. RCPB
members are eligible for early retirement after attaining the age of 60 with at least 15 years
of eligible service. Benefits are generally equal to 0.8%-1.5% of the member’s final
average salary multiplied by the number of years of credited service, depending upon
membership class.
Participants are eligible for ordinary disability retirement benefits after completing five
years of service. The benefit allowance is computed on the basis that the service continues
until age 62 without any change in rate of earnable compensation. If disability occurs after
age 62 (age 65 for RCPB), the benefit is based on creditable service at time of retirement.
Participants are eligible for accidental disability retirement benefits if the disability
occurred in the actual performance of the employee’s duty.
The accidental disability benefits are equal to 66 2/3% of the employee’s average final
compensation for the three highest consecutive years as a member plus the annuity
provided by accumulated member contributions, but cannot be greater than the average
final compensation. To be eligible for death benefits under the TPS plan, members must
have either accumulated at least one year of eligible service prior to date of death or died in
the line of duty. Such benefits consist of a one-time lump sum payment equal to the
member’s annual earnable compensation at the time of death, plus accumulated member
contributions.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
84
11.RETIREMENT PLANS (continued)
Board of Education (continued)
Benefits Provided (continued)
Maryland Employee’s Retirement System (ERS): Under ERS, the members are eligible for
full service retirement allowances upon attaining age 60 or upon accumulating 30 years of
eligible service regardless of age. The retirement allowance is 1/55th of average final
compensation for the three highest years as a member for each year of creditable service.
ERS members are eligible for early service retirement allowances upon accumulating at
least 25 years prior to attaining age 60. The service retirement allowance is reduced by
0.005 for each month that date of retirement proceeds the earlier of age 60 or the date the
member would have completed 30 years of eligibility service. The maximum reduction is
30%.
They are also eligible for ordinary disability retirement allowance upon completing five
years of eligibility service and receiving certification from the Medical Board that they are
permanently incapable of performing their necessary job function. The ordinary disability
benefit is 1/55th of average final compensation for the three highest years as a member for
each of creditable service. The minimum benefit is 25% of average final compensation; the
maximum benefit can be not greater than 1/55th of average final compensation for each
year of creditable service the member would have accrued if employment continued to age
60. ERS members are eligible for accidental disability benefits if the Medical Board
certifies that, in the course of job performance and as the direct result of an accidental
injury, they become totally and permanently disabled. The accidental disability benefit is
equal to 66 2/3% of the employee’s average final compensation for the three highest
consecutive years as a member plus the annuity provided by accumulated member
contributions but cannot be greater than the average final compensation.
To be eligible for death benefits under the ERS plan, members must have either
accumulated at least one year of eligible service prior to date of death or died in the line of
duty. Such benefits consist of a one-time lump sum payment equal to the member’s annual
earnable compensation at the time of death, plus accumulated member contributions. If the
member dies prior to accruing one year of service, payment is only the return of
accumulated member contributions.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
85
11. RETIREMENT PLANS (continued)
Board of Education (continued)
Benefits Provided (continued)
Maryland Employee’s Pension System (EPS): Under the EPS plan, members are eligible
for full service pension allowance upon accumulating 30 years if eligibility regardless of
age. Absent 30 years eligible service, members must meet one of the following conditions
to be eligible for full service pension allowance: (a) 62 with 5 years of eligible service, (b)
age 63 with 4 years of eligible service, (c) age 64 with 3 years of eligible service, or (d) age
65 or older with 2 years of eligible service. Members are eligible for early service pension
liability upon attaining age 55 with at least 15 years of service or attaining age 60 with 15
years of service, depending on plan. Allowances for both normal and early retirement are
based on membership class.
They are also eligible for ordinary disability retirement allowance upon completing five
years of eligibility service and receiving certification from the Medical Board that they are
permanently incapable of performing their necessary job function. The benefit is the
service retirement allowance computed on the basis that service continues until age 62 (age
65 for RCPB) without any change in the rate of earnable compensation. EPS members are
eligible for accidental disability benefits if the Medical Board certifies that, in the course of
job performance and as the direct result of an accidental injury, they become totally and
permanently disabled. The accidental disability benefit is equal to 66 2/3% of the
employee’s average final compensation for the three highest consecutive years (five years
for RCPB) as a member plus the annuity provided by accumulated member contributions,
but cannot be greater than the average final compensation.
To be eligible for death benefits under the EPS plan, members must have either
accumulated at least one year of eligible service prior to date of death or died in the line of
duty. Such benefits consist of a one-time lump sum payment equal to the member’s annual
earnable compensation at the time of death, plus accumulated member contributions.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
86
11.RETIREMENT PLANS (continued)
Board of Education (continued)
Contributions
The Board and covered members are required by State statute to contribute to the System.
Members of the Teachers’ Pension System and the Teachers’ Retirement System are
required to contribute between 5-7% annually (depending on the plan). Members of the
Employees’ Pension System and Employees’ Retirement System are required to contribute
2-7% annually, depending on the retirement option selected. The contribution requirements
of the System members, as well as the State and participating governmental employers are
established and may be amended by the Board of Trustees for the System.
Beginning in FY2017, the Board pays the normal cost for their teachers in the Teachers
Retirement and Pension System while the State contributes on behalf of the Board, the
unfunded liability portion of the Board’s annual required contribution to the Teachers’
Retirement and Pension System, which for the year ended June 30, 2021 was $8,601,323.
The State’s contributions on behalf of the Board for the year ended June 30, 2021 was
$16,218,456. The fiscal 2021 contributions made by the State on behalf of the Board have
been included as both revenues and expenditures in the general fund in the accompanying
Statement of Revenues, Expenditures and Changes in Fund Balances and are also included
as revenues and expenses in the Statement of Activities.
The Board’s contractually required contribution rate for the Employees’ Retirement and
Pension Systems for the year ended June 30, 2020, was 10.21% of annual payroll,
actuarially determined as an amount that, when combined with employee contributions, is
expected to finance the costs of benefits earned by employees during the year, with an
additional amount to finance any unfunded accrued liability. The Board made its share of
the required contributions during the year ended June 30, 2021 of $2,210,130.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
As of June 30, 2021, the School System reported a liability for its proportionate share of
net pension liability that reflected a reduction for State pension support provided to the
School System. The amount recognized by the School System as its proportionate share of
the net pension liability, the related State support and the total portion of the net pension
liability that was associated with the School System were as follows:
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
87
11. RETIREMENT PLANS (continued)
Board of Education (continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions (continued)
Total 177,794,499$ 20,859,450$
Teachers'
Retirement and
Pension System
Employees'
Retirement and
Pension System
For the year ended June 30, 2021, the School System recognized pension expense of
$2,325,493. As of June 30, 2021, the School System reported deferred outflows of
resources and deferred inflows of resources related to the pensions from the following
sources:
Total 5,986,406$ 2,090,527$
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
The $2,210,130 reported as deferred outflows of resources related to pensions resulting
from the School System contributions subsequent to the measurement date will be
recognized as a reduction of the net pension liability in the year ended June 30, 2022.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
88
11.RETIREMENT PLANS (continued)
Board of Education (continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions (continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Years Ended June 30, Amount
2022 (39,480)$
2023 435,085
2024 812,775
2025 431,267
2026 46,102
Total 1,685,749$
Sensitivity of the net pension liability to changes in the discount rate
The following presents the net pension liability of the plan, calculated using a discount rate
of 7.40% as well as what the plan’s net pension liability would be if it were calculated
using a discount rate that is 1-percentage point lower (6.40%) or 1-percentage point higher
(8.40%) than the current rate:
1.0% decrease
6.40%
Current rate
7.40%
1.0% increase
8.40%
12.RISK MANAGEMENT
Primary Government
The County is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The
County purchases commercial insurance for claims in excess of deductible amounts for all
risks of loss, except for employee health and workers’ compensation. Settlements have not
exceeded insurance coverages during the past three fiscal years.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
89
12. RISK MANAGEMENT (continued)
Primary Government (continued)
The County Commissioners have established a self-insurance plan for health benefits to its
employees, retirees and to other governmental and non-profit agencies. Budgeted amounts
are charged to each fund, and premiums are charged to retirees and other governmental and
non-profit agencies for their share of the costs, which are intended to cover the estimated
costs of claims and administrative expenses.
Contributions from employees, retirees and other governmental non-profit agencies are
offset against budget amounts charged in the related fund. Under this plan, the County’s
General Fund bears all risk of loss.
The County has established claims liabilities based on estimates of the ultimate cost of settling
the claims (including future claim adjustment expenses) that have been reported but not settled,
and of claims that have been incurred but not reported. The length of time for which such costs
must be estimated varies depending on the coverage involved. Because actual claims costs
depend on such complex factors such as inflation, changes in doctrines of legal liability, and
damage awards, the process used in computing claims liabilities does not necessarily result in
an exact amount. Claims liabilities are recomputed periodically using a variety of actuarial and
statistical techniques to produce current estimates that reflect recent settlements, claim
frequency, and other economic and social factors. A provision for inflation in the calculation of
estimated future claim costs is implicit in the calculation because reliance is placed both on
actual historical data that reflect past inflation and on other factors that are considered to be
appropriate modifiers of past experience. Adjustments to claims liabilities are charged or
credited to expense in the periods in which they are made.
The liability for estimated claims was determined to be $967,496 which is reflected in the
accompanying financial statements as of June 30, 2021. Changes in the claims liability
were as follows:
2021 2020
786,154$ 1,260,728$
16,864,225 15,088,549
(16,682,883) (15,563,123)
967,496$ 786,154$
Years Ended June 30,
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
90
12.RISK MANAGEMENT (continued)
Primary Government (continued)
The County uses a third-party administrator to process and pay claims. The County has
purchased a stop-loss insurance policy in which the insurance company covers individual
claims once they exceed $175,000. Under this policy, the County was liable for the first
125% of expected claims paid in the current fiscal year. Any claims in excess of this
amount are to be paid by the insurance company under the stop-loss policy.
The County Commissioners have also established a self-insurance plan for Workers’
Compensation claims whereby the County is liable for the first $600,000 per occurrence.
As required by the State of Maryland, $175,000 in U.S. Treasury Notes is held by the State
Workers’ Compensation Commission and is included in investments on the balance sheet.
The County extends coverage under this plan to the employees of other governmental and
nonprofit agencies. These agencies are charged a “premium”, however the County bears
the risk of loss. The liability for estimated claims was determined to be $726,071, which is
reflected in the accompanying financial statements as of June 30, 2021. Changes in the
claims liability were as follows:
2021 2020
694,972$ 951,213$
962,748 876,072
(931,649) (1,132,313)
726,071$ 694,972$
Years Ended June 30,
Board of Education
The School System is exposed to various risks of loss related to torts; theft of, damage to,
and destruction of assets; errors and omissions; personal injury; and natural disaster. The
School System is one of seventeen Boards of Education within the State of Maryland
belonging to the Maryland Association of Boards of Education Group Insurance Pool (the
Pool), a public entity risk pool organized as a trust. The School System pays an annual
premium to the Pool for its property, liability, and automobile coverage. Such premiums
are actuarially calculated for the Pool as a whole based on loss data and are allocated to
members based on student enrollment and number and type of vehicles as well as
experience modification factors. The Pool is reinsured on a claims-made basis for legal
liability covering claims aggregating $3 million per School System per year.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
91
12.RISK MANAGEMENT (continued)
Board of Education (continued)
Additionally, the School System is one of seventeen Boards of Education within the State
of Maryland belonging to the Maryland Association of Boards of Education Workers’
Compensation Group Self-Insurance Fund (the Fund). This Fund was established to
provide worker’s compensation indemnity and medical benefits coverage for participating
school boards. The Fund is operated under regulations promulgated by the State’s Workers’
Compensation Commission (COMAR 14.09.02). Each Fund participant pays an annual
premium calculated on its payroll according to the standard classifications, with an
experience modification applied. Although premiums billed to the Fund members are
determined on an actuarial basis, ultimate liability for claims remains with the respective
members and accordingly, the insurance risks are not transferred to the Fund. Six months
following the end of the Fund’s fiscal year, the Fund’s trustees declare unneeded funds as
surplus and distribute 50% of the declared surplus as dividends to the Fund members. This
dividend distribution is made no sooner than one year after the close of that fiscal year.
Members dedicate the remaining 50% of the surplus each year to a surplus fund until it
reaches 75% net annual premium. The Fund carries an excess insurance policy providing
specific excess and employer liability protection coverage, thus reducing the potential of
assessment against Fund members. The Fund provides coverage for up to a maximum of
$500,000 for each worker’s compensation claim.
Settled claims from these risks have not exceeded the planned coverage during any of the
past three years.
The School System also offers a program of self-insured health, dental, and vision benefits
to its employees and retirees. Charges are made to other funds, employees and retirees for
their respective share of the costs in amounts planned to match the estimated claims, the
cost of insurance premiums for coverage in excess of self-insured amounts and the
administrative costs in providing the program. Such costs are also offset by interest income
earned from investing receipts until they are paid out in the form of claims or expenses.
Administrative costs directly related to the program are borne by the Self-Insurance Fund.
In accordance with the Governmental Accounting Standards Board’s Statement No. 10
“Accounting and Financial Reporting for Risk Financing and Related Insurance Issues,”
charges to other funds must be accounted for as revenue by an internal service fund and
expenditures/expenses by the other funds. The amounts of these charges were $44,869,433
for the year ended June 30, 2021.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
92
12. RISK MANAGEMENT (continued)
Board of Education (continued)
The Self-Insurance Fund’s accrued liabilities include an estimate of the amount to be paid
for self-insured claims incurred prior to June 30, 2021 and 2020. This estimate is prepared
based upon the School System’s experience and other relevant facts. Changes in the Fund’s
claims liability amount were as follows:
2021 2020
2,939,000$ 2,362,000$
48,587,283 49,233,966
(48,076,442) (48,656,966)
3,449,841$ 2,939,000$
Years Ended June 30,
13. DEFERRED COMPENSATION PLAN
The County offers its employees a deferred compensation plan created in accordance with
Internal Revenue Code Section 457 and administered by a third party. The plan, available
to all County employees, permits them to defer a portion of their salary until future years.
The deferred compensation is not available to employees until termination, retirement,
death, or unforeseeable emergency. The deferred compensation plan assets are held in trust
for the exclusive benefit of the plan participants. Therefore, the plan assets are not
presented in the financial statements.
14. SEGMENT INFORMATION
The County has entered into loan agreements with the Maryland Water Quality Financing
Administration. The loans are backed by the full faith and credit and taxing power of the
County; however, the source of payment of the principal and interest of the loans is the
sewer user charges and pretreatment facility user charges. The user charges are accounted
for in the Water Quality Fund.
Summarized financial information for the Sewer and Pretreatment operations is presented
below. The Water Quality Department operates the County’s sewage treatment plants,
sewage pumping stations, and collection systems and leases the pretreatment facility to a
private company.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
93
14.SEGMENT INFORMATION (continued)
CONDENSED STATEMENT OF NET POSITION
ASSETS
Current assets 13,460,325$ -$
Noncurrent assets 144,321,447 4,232,986
Total Assets 157,781,772 4,232,986
DEFERRED OUTFLOW OF RESOURCES 271,598 37,276
LIABILITIES
Other current liabilities 2,607,863 841,827
Noncurrent liabilities 28,946,379 461,063
Total Liabilities 31,554,242 1,302,890
Net Position
Net investment in capital assets 121,171,078 3,311,923
Unrestricted 7,254,534 -
Restricted - capital projects (1,926,483) (344,552)
Total Net Position 126,499,129$ 2,967,371$
CONDENSED STATEMENT OF REVENUE, EXPENSES
AND CHANGES IN NET POSITION
Operating revenue 12,219,760$ -$
Lease income -345,600
Operating transfer --
Operating grant 235,572 -
Depreciation expense (3,275,256) (183,838)
Other operating expenses (8,615,431) (21,020)
Operating income 564,645 140,742
Non-operating revenue (expenses):
Interest expense (614,503) (29,762)
Interest income 123,762 -
Capital contributions 1,366,955 -
Total non-operating revenue (expense)876,214 (29,762)
Change in Net Position 1,440,859 110,980
Net Position, beginning of year 125,058,270 2,856,391
Net Position, End of Year 126,499,129$ 2,967,371$
CONDENSED STATEMENT OF CASH FLOWS
Net cash provided (used) by:
Operating activities 6,444,021$ 92,712$
Capital and related financing activities 752,452 (29,763)
Net change 7,196,473 62,949
Cash and cash equivalents, beginning of year 3,470,252 317,342
Cash and Cash Equivalents, End of Year 10,666,725$ 380,291$
Sewer
Department
Pretreatment
Department
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
94
15. CLOSURE AND POST-CLOSURE CARE COST
State and Federal laws and regulations require the County to place a final cover on its
landfills when they stop accepting waste. The County is also required to perform certain
maintenance and monitoring functions at the site for up to thirty years after closure.
Although closure and post-closure care costs will be paid only near the date or after the
date that the landfill stops accepting waste, the County reports a portion of these closure
and post-closure care costs as a liability based on landfill capacity used as of each balance
sheet date.
The Hancock Landfill was closed in 1993. The remaining estimated costs associated with
the closure and post-closure care costs of $129,487 are reported as a liability in the Solid
Waste Fund. No current expense was recognized in the Solid Waste Fund for the year
ended June 30, 2021.
The Resh Landfill has reported a landfill post-closure care liability of $3,578,445 in the
Solid Waste Fund. The total capacity has been used. The Resh Landfill was closed in
December 2000. No current expense was recognized in the Solid Waste Fund for the year
ended June 30, 2021.
The Rubble Landfill began operating during August 1995. The estimated cost associated
with post-closure care of $2,202,400 is reported as a liability in the Solid Waste Fund as of
June 30, 2021. The Rubble Landfill was closed in December 2000. No current expense was
recognized in the Solid Waste Fund for the year ended June 30, 2021.
The 40 West Landfill began operation in fiscal year 2001. The estimated life of the
Landfill is based on the average cubic yards used. As of June 30, 2021, the approximate
life of the Landfill is 95 years. It is estimated that approximately 22.21% of the capacity
has been used. The estimated costs associated with closure and post-closure care of
$10,452,616 was reported as a liability in the Solid Waste Fund as of June 30, 2021. The
County will recognize $47,055,727 of estimated cost associated with the closure and post-
closure care as capacity is filled. During the fiscal year 2012 engineering re-designed the
cells at 40 West Landfill. This change in estimate increased the airspace by 4 million cubic
yards. This change in accounting estimate has no effect on the total estimated cost but will
extend the landfill life.
The above estimates are based on estimated current costs to perform all closure and post-
closure care. Actual costs may be higher due to inflation, deflation, changes in technology,
or changes in applicable laws or regulations. The County is required by state and Federal
laws and regulations to meet certain closure and post-closure financial assurance
requirements. The County has satisfied these requirements by demonstrating in information
submitted by the CFO that they meet the Local Government Financial Test as of June 30,
2021, as specified in 40CFR258.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
95
16. OTHER POSTRETIREMENT EMPLOYEE BENEFITS
Primary Government
Plan Description
The County offers postretirement health care benefits to employees who retire from the
County under normal or early retirement provisions of the pension plan. The health care
benefits are provided until the retiree is eligible for Medicare. Retirees who exercise the
one-time option for the health care benefits pay one-half of the estimated cost of the
benefits. The County pays the remaining cost as part of its self-insurance program.
Currently, 49 retirees are receiving benefits and 163 employees are retirement eligible.
Expenditures for postretirement health care benefits are recognized as retirees report claims
and include a provision for estimated claims incurred but not yet reported.
Investments
The County’s OPEB Plan Investment Policy states that the assets are to be managed for
total return, defined as dividend and interest income plus or minus capital gains and losses.
Investments shall be diversified so as to minimize the risk of unacceptable losses. The
portfolio is looked at as a whole rather than as individual securities. Investing for long term
(preferably longer than 10 years) becomes critical to investment success because it allows
the long-term characteristics of the asset classes to surface. The table below summarizes
the target asset class weighting, along with the allowable ranges for each class.
Investment Type Range Target
Real Estate 0-10% 5%
Funding Policy
The County intends to fund any annual short-fall between OPEB and actual pay-go
expense into a legally executed trust fund. The trust fund will be invested as a long-term
pension trust, using an appropriately balanced portfolio of equities and debt instruments, to
prudently maximize long-term investment returns. The County funded $12,832 which was
$12,832 over the actuarially determined contribution of $0.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
96
16.OTHER POSTRETIREMENT EMPLOYEE BENEFITS (continued)
Primary Government (continued)
Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates
are made about the future. The schedule of funding progress, presented as required
supplementary information following the notes to the financial statements, presents multi-
year trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
Net OPEB Liability (Asset)
The net OPEB liability (asset) is equal to the total OPEB liability minus the net position of
the plan. The result as of June 30, 2021 is as follows:
Net position as a percentage of total OPEB liability is 233.21%.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on substantive plan (the
plan as understood by the employer and the plan members) and includes the type of
benefits provided at the time of each valuation and the historical pattern of sharing the
benefit costs between the employer and plan members to that point. The actuarial methods
and assumptions used include techniques that are designed to reduce the effects of short-
term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent
with the long-term perspective of the calculations. Best estimates of arithmetic assumed rates
of return for each class included in the OPEB plans’ general target asset allocation as of June 30,
2021 is as follows:
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
97
16. OTHER POSTRETIREMENT EMPLOYEE BENEFITS (continued)
Primary Government (continued)
Actuarial Methods and Assumptions (continued)
Asset Class
Target
Allocation
Long-Term Expected Real
Rate of Return
In the actuarial valuation for the plan year ending June 30, 2021, the projected unit credit
actuarial cost method was used. The actuarial assumptions included a 7.25% investment
rate of return (net of administrative expenses), which is a blended rate of the expected long-
term investment returns on plan assets and on the employer’s own investments calculated
based on the funded level of the plan assets at the valuation date, and an annual healthcare
cost trend rate of 4.9% initially, reduced by decrements to an ultimate rate of 4%. The
actuarial value of assets was determined using a market value of assets valuation method.
The unfunded actuarial accrued liability (UAAL) is being amortized as a level percent of
payroll. The remaining amortization period as of June 30, 2021, was 17 years.
Sensitivity of the net OPEB liability to changes in the discount rate
The following presents the net OPEB liability of the Plan, calculated using a discount rate
of 7.25% as well as what the Plan’s net OPEB liability would be if it were calculated using
a discount rate that is 1-percentage point lower (6.25%) or 1-percentage point higher
(8.25%) than the current rate:
1.0% decrease
6.25%
Current rate
7.25%
1.0% increase
8.25%
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
98
16.OTHER POSTRETIREMENT EMPLOYEE BENEFITS (continued)
Primary Government (continued)
Sensitivity of the net OPEB liability to changes in the health care cost trend rate
The following presents the net OPEB liability of the Plan, calculated using trend rate as
well as what the Plan’s net OPEB liability would be if it were calculated using a trend rate
that is 1-percentage point lower or 1-percentage point higher than the current rate:
1.0% decrease
3.0%
Trend rate
4.0%
1.0% increase
5.0%
For the fiscal year ended June 30, 2021, Washington County Government recognized an
OPEB expense of $(3,056,834). As of June 30, 2021, Washington County Government
reported deferred outflows of resources and deferred inflows of resources related to the
OPEB plan from the following sources:
Total -$ 13,095,266$
Deferred
Outflows of
Resources
Deferred Inflows of
Resources
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to the OPEB plan will be recognized in the expense as follows:
Years Ended June 30, Amount
2022 (3,032,296)$
2023 (3,003,391)
2024 (3,072,369)
2025 (3,235,998)
2026 (365,265)
Thereafter (385,947)
Total (13,095,266)$
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
99
16.OTHER POSTRETIREMENT EMPLOYEE BENEFITS (continued)
Board of Education
In addition to providing the pension benefits described above, the School System provides
postemployment health care and life insurance benefits (OPEB) for retired employees, their
spouses and dependents, and surviving spouses and dependents. On April 15, 2008, the
Board created the Board of Education of Washington County (the Trust) in order to arrange
for the establishment of a reserve to pay health and welfare benefits for future retirees. The
Trust is affiliated with the Maryland Association of Boards of Education Pooled OPEB
Investment Trust, an agent multiple-employer public employee retirement system
established by the Maryland Association of Boards of Education (MABE). The Board
reserves the right to establish and amend the provisions of the Trust with respect to
participants, any benefit provided thereunder, or its participation therein, in whole or in part
at any time, by resolution of its governing body and upon advance written notice to the
Trustees. The Maryland Association of Boards of Education Pooled OPEB Investment
Trust issues an annual financial report for the Trust. That report may be obtained by writing
to Maryland Association of Boards of Education, 621 Ridgely Avenue, Suite 300,
Annapolis, Maryland 21401, or by calling 1-800-841-8197.
Eligible participants include employees, former employees, or beneficiaries of Washington
County Public Schools who are receiving pensions. Participants must meet the retirement
eligibility requirements of the State of Maryland Employees’ and Teachers’ Pension
System (EPS). Under EPS, members hired on or after July 1, 2011 are in the Reformed
Contributory Pension System. The earliest retirement eligibility under the Reformed
Contributory Pension System is the earlier of:
•Rule of 90 (age plus service is at least 90),
•Age 65 with 10 years of service, or
•Age 60 with 15 years of service.
For other members of EPS, the earliest retirement eligibility is the earlier of:
•Age 55 with 15 years of service,
•Age 62 with 5 years of service,
•Age 63 with 4 years of service,
•Age 64 with 3 years of service,
•Age 65 with 2 years of service, or
•30 years of service (regardless of age).
Under EPS, there are two types of disability benefits, ordinary and accidental. Ordinary
disability under EPS requires five (5) years of eligibility service. There is no service credit
requirement for accidental disability.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
100
16. OTHER POSTRETIREMENT EMPLOYEE BENEFITS (continued)
Board of Education (continued)
Retirees can continue the same medical coverage they had (including family coverage) as
active employees. Retirees receive a subsidy for their post-retirement medical insurance
based on points (Age + Service). A minimum of 66 points (with 5 years of service) is
required to receive a subsidy. The maximum subsidy of 85% is reached at 85 points (note
this is a blended subsidy percentage based on the subsidy for each plan and the current
enrollment distribution). Retirees with less than 66 points are allowed access, but must pay
100% of the published rates.
Contributions
The School System will contribute the higher of the budgeted pay-go amount or actual pay-go
amount to the trust for fiscal year 2021. Because of the sponsor’s funding policy, it is
anticipated the sponsor’s cash requirement will increase as time goes on. For the year ended
June 30, 2021 and 2020, the School System’s average contribution rate was 8.99% and 9.55%,
respectively of covered payroll. Employees are not required to contribute to the plan. Total
claims paid on behalf of retires amounted to $15,331,704 of which $3,802,919 was reimbursed
through contributions received from retirees for the year ended June 30, 2021. In addition, the
School System contributed $5,908,167 to the MABE Trust for the year ended June 30, 2021.
Total claims paid on behalf of retirees amounted to $15,650,073 of which $3,971,020 was
reimbursed through contributions received from retirees for the year ended June 30, 2020.
Plan Membership
The School System partially supports the group insurance plan for the retired employees.
Eligibility is determined by a point system based on a retiree’s age at the date of retirement
and the number of years of service with the School System. The School System pays up to
a maximum of 85% of the premium of the standard plan, based on the points earned. There
were 2,740 active employees and 1,863 inactive employees or beneficiaries currently
receiving benefit payments at the June 30, 2020, measurement date.
Investments
The MABE Trust’s policy in regards to the allocation of invested assets is established and
may be amended by the Trustees by a majority vote of its members. It is the policy of the
Trust to pursue an investment strategy that emphasizes growth of principal while avoiding
excess risk. Short-term volatility will be tolerated inasmuch as it is consistent with the
volatility of a comparable market index. The MABE Trust’s investment policy discourages
the use of cash equivalents, except for liquidity purposes and aims to refrain from
dramatically shifting asset class allocations over short time span. The following is the
MABE Trust’s adopted asset allocation policy as of June 30, 2021 and 2020:
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
101
16. OTHER POSTRETIREMENT EMPLOYEE BENEFITS (continued)
Board of Education (continued)
Investments (continued)
Asset Class
Target
Allocation
Rate of Return
For the year ended June 30, 2021 and 2020, the annual money-weighted rate of return on
investments, net of investment expense, was 24.52% and 2.91%, respectively. The money-
weighted rate of return expresses investment performance, net of investment expense,
adjusted for the changing amounts actually invested.
Investment in External Investment Pool
The School System has funds designated for Other Post-employment Benefits (OPEB) that
are held by the Maryland Association of Board of Education (MABE) in the MABE OPEB
Trust (MABE Trust). The MABE Trust is administered by the MABE and is a wholly-
owned instrumentality of its members. The ten members who are sole contributors to the
MABE Trust consist of Allegany Fiduciary Fund and the boards of education of the
following counties in Maryland: Allegany, Caroline, Cecil, Charles, Harford, Kent, Prince
George’s, St. Mary’s, and Washington.
The MABE Trust is audited annually by an independent CPA firm. The audit report is
usually issued by September 1st of each year, a copy of which can be obtained by sending a
request to the following address: Administrator of the MABE Pooled Investment Trust, 621
Ridgely Road, Suite 300, Annapolis, MD 21401-1112.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
102
16.OTHER POSTRETIREMENT EMPLOYEE BENEFITS (continued)
Board of Education (continued)
Net OPEB Liability
The components of the net OPEB liability of the School System as of June 30, 2021, were
as follows:
Plan fiduciary net position as a percentage of the total OPEB liability was 35.30%.
Actuarial Methods and Assumptions
The actuarial assumption and related discount rate disclosures as required by GASB 74 are
included in a separately issued report available from the Board of Education.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the Plan, calculated using a discount rate
of 4.83% as well as what the Plan’s net OPEB liability would be if it were calculated using
a discount rate that is 1-percentage point lower (3.83%) or 1-percentage point higher
(4.83%) than the current rate:
1.0% decrease
3.83%
Current rate
4.83%
1.0% increase
5.83%
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rate
The following presents the net OPEB liability of the Plan, calculated using trend rate as
well as what the Plan’s net OPEB liability would be if it were calculated using a trend rate
that is 1-percentage point lower or 1-percentage point higher than the current rate:
1% decrease
Medical trend
rate 1% increase
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
103
16. OTHER POSTRETIREMENT EMPLOYEE BENEFITS (continued)
Board of Education (continued)
Detailed OPEB plan information for the School System is available in a separately issued
audited financial statements available on the School System’s website.
17. CONTINGENCIES AND COMMITMENTS
Primary Government
In the normal course of operations, the County receives grant funds from various Federal
and state agencies. The grant programs are subject to audit by agents of the granting
authority, the purpose of which is to ensure compliance with conditions precedent to the
granting of funds. Any liability for reimbursement which may arise as the result of these
audits is not believed to be material.
The County Commissioners and the Sheriff of Washington County are defendants in
various legal proceedings as of June 30, 2021. There are also certain unasserted claims that
could possibly be asserted. The Commissioners intend to defend all litigations against
them. In the Commissioners’ opinion, the liability, if any, in or arising from these
litigations or any other legal proceedings in which the County is involved, will not have a
material adverse effect on its financial condition.
The County is committed under various contracts for the construction or acquisition of
fixed assets. These projects are generally budgeted in the Capital Projects Fund, and
funding has been provided for their completion.
On June 23, 2014, the Board of County Commissioners of Washington County, Maryland
entered into a $4 million loan agreement with the Maryland Department of Business and
Economic Development and Mack Trucks, Inc. The loan proceeds were made for eligible
project costs and does not require repayment unless specific employment levels are
not met. If such a condition occurs, repayments are guaranteed to DBED by the County.
Mack Trucks, Inc. is contractually obligated to the County to reimburse any payments
occurring as a result of the guarantee. As of June 30, 2021, there is no effect on amounts
reported on the County’s statement of net position or statement of activities as a result of
this guarantee.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
104
17.CONTINGENCIES AND COMMITMENTS (continued)
Board of Education
In the normal course of operations, the School System is subject to lawsuits and claims. In
the opinion of management, the disposition of such lawsuits and claims will not have a
material effect on the School System’s financial position or results of operations.
As of June 30, 2021, the School System had entered into various school construction
commitments, that will be funded by the State of Maryland or County sources, totaling
approximately $14,935,246 and are included in encumbrances.
The School System leases classroom space, cafeteria space, storage, and parking deck
passes for the Barbara Ingram School for the Arts. These leases are renewable on an annual
basis. The lease for the parking deck spaces does not have a set term. Total required
minimum monthly payments for the year ended June 30, 2022 are approximately $50,098.
Rent expense for these leases amounted to $67,402 for the year ended June 30, 2021.
As of June 30, 2020, the School System had outstanding purchase orders and contracts of
$13,801,263. These amounts are partially included in assigned fund balance in the
appropriate funds.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
105
17. CONTINGENCIES AND COMMITMENTS (continued)
Board of Education (continued)
The School System participates in a number of state and federally assisted grant programs,
which are subject to financial and compliance audits by the grantors or their
representatives. Such federal programs were audited in accordance with Title 2 U.S. Code
of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards for the current year. The amount of
expenditures which may be disallowed by the granting agencies cannot be determined at
this time, although the School System expects such amounts, if any, to be immaterial.
18. COMMITTED AND ASSIGNED FUND BALANCES
Fund balances reflected in the governmental funds balance sheet as of June 30, 2021 are
categorized as follows:
General Fund Total
Totals
Non-Major
Governmental
Funds
Capital
Projects Fund
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
106
19.RETIREMENT PLAN - FIRE AND RESCUE VOLUNTEERS
On September 26, 2000, the Board of County Commissioners approved the Volunteer
Length of Service Award Program (LOSAP), a defined benefit plan for eligible volunteers
of Washington County fire, rescue, emergency medical services or support organizations.
LOSAP, which will be funded entirely by the County General Fund, provides benefit
payments to volunteers who have completed certain eligibility and years of service
requirements. An active volunteer who has attained age 62 and has been credited with a
minimum of 25 years of active LOSAP Service is eligible to receive, until his or her death,
a monthly benefit payment of $200, or may elect an actuarially reduced benefit in the form
of a joint survivor annuity.
An active volunteer, who has completed more than 25 years of Active LOSAP Service
Credit, is eligible to receive, until his or her date of death, an additional monthly benefit
payment of $15 for each year of active LOSAP service credit in excess of 25 years, not to
exceed a total monthly benefit payment of $350. No LOSAP benefits were paid before
January 1, 2007. Generally, a volunteer must be an active volunteer on or after January 1,
2007, to be eligible for any benefit under LOSAP. LOSAP also provides for death and
disability benefits.
Investments
The table below summarizes the target asset class weighting, along with the allowable
ranges for each class.
Investment Type Range Target
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
107
19.RETIREMENT PLAN - FIRE AND RESCUE VOLUNTEERS (continued)
Investments (continued)
The long-term expected rate of return on pension plan investments was determined using a
standard building block approach. These ranges are combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by the target asset
allocation percentage and adding expected inflation. Best estimates of arithmetic assumed rates
of return for each class included in the pension plans’ general target asset allocation as of June
30, 2021 is as follows:
Asset Class
Target
Allocation
Long-term Expected Real
Rate of Return
Net pension liability
The net pension liability is equal to the total pension liability minus the net position of the
plan. The result as of June 30, 2021 is as follows:
Net position as a percentage of total pension liability is 102.07%.
Sensitivity of the net pension liability to changes in the discount rate
The following presents the net pension liability of the plan, calculated using a discount rate
of 7.25% as well as what the plan’s net pension liability would be if it were calculated
using a discount rate that is 1-percentage point lower (6.25%) or 1-percentage point higher
(8.25%) than the current rate:
1.0% decrease
6.25%
Current rate
7.25%
1.0% increase
8.25%
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
108
19. RETIREMENT PLAN - FIRE AND RESCUE VOLUNTEERS (continued)
Pension expense and deferred outflows of resources and deferred inflows of resources
For the year ended June 30, 2021, the County recognized pension expense of $(502,658).
As of June 30, 2021, the County reported deferred outflows of resources and deferred
inflows of resources related to the length of service award program from the following
sources:
Total 1,521,058$ 2,649,631$
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
The above amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in the pension expense as follows:
Years Ended June 30, Amount
2022 (830,711)$
2023 (44,122)
2024 (74,831)
2025 (310,981)
2026 118,820
Thereafter 13,252
Total (1,128,573)$
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
109
20. TAX ABATEMENTS
Washington County provides tax abatements and credits to encourage economic
development: the Job Creation & Capital Investment Real Property Tax Credit, the New
Jobs Tax Credit, Pad-Ready Stie Commercial Stimulus Credit, and the Enterprise Zone Tax
Credit.
Job Creation & Capital Investment Real Property Tax Credit Program
This tax credit program ranges from six (6) years to fifteen (15) years in tax credits on the
County portion of real estate taxes for qualified businesses that either expand or locate and
increase employment in Washington County. There are three opportunities:
A. An existing business entity (1) must obtain at least an additional 1,500 square
feet of new or expanded premises; (2) must employ at least one (1) individual in a new,
permanent full-time position during a 12-month period during which the business entity
must obtain and occupy the new or expanded premises. The tax credit is 52% during years
one and two; 39% during years three and four; and 26% during years five and six.
B. (1) Must obtain at least 2,500 square feet; (2) employ at least five additional
new, permanent full-time employees during a 24-month period. The tax credit is 30%
during years one and two; 20% during years three and four; and 10% during years five and
six.
C. (1) Must invest $10,000,000 in capital improvements; (2) create 100 new,
permanent full-time employees. Tax credit is 100% for each of the first five taxable years;
75% for year six through ten; 50% for years 11 through 15.
In FY2021, utilization of this program was not material.
New Jobs Tax Credit Program
This program provides a six-year tax credit for qualified businesses that either expand or
relocate in Washington County. The credit applies to Washington County’s real property
tax on real property owned or leased by the business and on personal property owned by
that business. The amount of the New Jobs Tax Credit a business may claim against
County taxes imposed on the assessed value of the new or expanded premises in which the
credit is allowed is:
• 52% during the first (1st) and second (2nd) taxable years
• 39% during the third (3rd) and fourth (4th) taxable years
• 26% during the fifth (5th) and sixth (6th) taxable years
To qualify for the program, a business must:
• Either construct or expand its operations in Washington County by a minimum of
10,000 square feet,
• Employ at least 25 persons in new, permanent full-time positions located at the new or
expanded premises in Washington County,
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
110
20.TAX ABATEMENTS (continued)
• Pay 50% of those new jobs at least 135% of the average weekly wage per Washington
County worker as reported by the Maryland Department of Labor at the end of the previous
calendar years, and,
• Be in a Priority Funding Area as designated in Title 5, Subtitle 7B of the State Finance
and Procurement Article.
In FY2021, there was no utilization of this program.
Pad-Ready Site Commercial Stimulus Program
A commercial property stimulus program that offers a qualified project a three-year tax
credit against the County real property tax on four-tenths of one percent (0.004) of
construction costs of the new improvement on the approved parcel.
This program is a valued part of our local business incentive package and considered
integral in spurring economic growth in Washington County. Qualifying projects are
entitled to priority plan review by the Washington County Development Advisory
Committee, deferral of County Site Plan application and review fees and a real-estate tax
credit issuance once buildings are constructed and occupied. The tax credit is to be 0.4 of a
percent (.004%) of the construction cost of the new improvement as determined by this
office and will apply for three consecutive years. The credit is limited to the lesser of three
years or until the parcel is further developed.
In FY2021, there was zero utilization of this program.
21.NEW ACCOUNTING PRONOUNCEMENTS
The GASB issued Statement No. 84, Fiduciary Activities; Statement No. 90, Majority
Equity Interests—an amendment of GASB Statements No. 14 and No. 61; and
Implementation Guide No. 2019-2, Fiduciary Activities; which all took effect during FY
2021. These statements have an immaterial effect on the County’s financial statements.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Notes to the Financial Statements
June 30, 2021
111
21. NEW ACCOUNTING PRONOUNCEMENTS (continued)
The GASB has issued Statement No. 87, Leases; Statement No. 89, Accounting for Interest
Cost Incurred before the End of a Construction Period; Statement No. 91, Conduit Debt
Obligations; Statement No. 92, Omnibus 2020; Statement No. 93, Replacement of
Interbank Offered Rates; Statement No. 94, Public-Private and Public-Public Partnerships
and Availability Payment Arrangements; Statement No. 96, Subscription-Based
Information Technology Arrangements; Statement No. 97, Certain Component Unit
Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457
Deferred Compensation Plans—an amendment of GASB Statements No. 14 and No. 84,
and a supersession of GASB Statement No. 32; Implementation Guide No. 2019-1,
Implementation Guidance Update—2019; and Implementation Guide No. 2019-3, Leases;
which will require adoption in the future, if applicable. Some of these statements and
implementation guides will have a material effect on the County’s financial statements
once implemented. The County will be analyzing the effects of these pronouncements and
plans to adopt them, as applicable, by their effective dates.
REQUIRED SUPPLEMENTARY INFORMATION
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COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Schedule of Changes in Net OPEB Liability and Related Ratios
June 30, 2021
114
2021 2020 2019 2018 2017
Total pension liability
Service Cost: Retirement benefits Administration 756,448$ 782,686$ 983,258$ 1,025,563$ 954,012$
Interest 961,217 961,904 1,577,724 1,680,908 1,546,680
Differences between expected and actual experiences (1,490,139) (367,885) (239,377) (3,216,054) -
Changes of assumptions (53,646) (838,141) (9,622,292) (223,390) -
Benefit payments (631,096) (533,287) (641,700) (655,923) (147,184)
Net changes in total OPEB liability (457,216) 5,277 (7,942,387) (1,388,896) 2,353,508
Total OPEB liability - beginning 13,723,498 13,718,221 21,660,608 23,049,504 20,695,996
Total OPEB liability - ending (a)13,266,282$ 13,723,498$ 13,718,221$ 21,660,608$ 23,049,504$
Plan fiduciary net position
Contributions - employer 12,832$ 14,879$ 641,700$ 1,877,923$ 1,347,184$
Net investment income 6,924,233 922,876 1,324,499 1,702,823 1,919,215
Benefit payments (631,096) (533,287) (641,700) (655,923) (147,184)
Administrative expense (22,037) (46,687) (108,008) (21,763) -
Net changes in plan fiduciary net position 6,283,932 357,781 1,216,491 2,903,060 3,119,215
Plan fiduciary net positions - beginning 24,654,510 24,296,729 23,080,238 20,177,178 17,057,963
Plan fiduciary net positions - ending (b)30,938,442$ 24,654,510$ 24,296,729$ 23,080,238$ 20,177,178$
County's net OPEB - liability - ending (a) - (b)(17,672,160)$ (10,931,012)$ (10,578,508)$ (1,419,630)$ 2,872,326$
Plan fiduciary net position as a percentage of total pension liability 233.21%179.65%177.11% 106.55% 87.54%
Covered employee payroll N/A N/A N/A N/A N/A
Net liability as a percentage of covered payroll N/A N/A N/A N/A N/A
Annual money-weighted rate of return, net of investment expense 28.09%3.80%5.74%8.44% 11.25%
Notes to schedule:
This information is not available for FY16 and prior.
Benefit changes
None.
Change of assumptions
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Schedule of OPEB Trust Fund Employer Contributions
June 30, 2021
115
2021 2020 2019 2018 2017
Actuarially determined contribution -$ -$ -$ 950,000$ 1,261,000$
Contributions in relation to the actuarially determined contributions 12,832 14,879 641,700 1,877,923 1,347,184
Contributions deficiency (excess)(12,832)$ (14,879)$ (641,700)$ (927,923)$ (86,184)$
Covered employee payroll N/A N/A N/A N/A N/A
Contributions as a percentage of covered employee payroll N/A N/A N/A N/A N/A
Notes to schedule:
Benefit changes None.
Valuation date
Changes of assumptions The medical trend was updated to the latest model released by the SOA and excludes the impact of the Cadillac Tax.
Methods and assumptions used to determine contribution rates:
Valuation Date 1/1/2021
Actuarial cost method Entry Age Normal
Amortization method Level percent of payroll
Remaining amortization period 17 years for FYE 2021
Asset valuation method Market value of assets
Investment rate of return 7.25% for FYE 2019 and after, 7.50% for FYE 2017 and 2018
Payroll growth rate 3.00%
Inflation 2.50%
Healthcare cost trend rate The trend for 2021 is 4.9%. The ultimate trend is 4.0%.
This information is not available for FYE 16 and prior.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Schedule of Changes in Pension Fund Net Pension Liability and Related Ratios – General Employees’ Pension Fund
June 30, 2021
116
2021 2020 2019 2018 2017 2016 2015 2014
Total pension liability
Service Cost: Retirement benefits Administration 6,949,190$ 7,011,877$ 6,564,304$ 5,050,740$ 4,903,615$ 3,124,202$ 3,508,850$ 6,922,217$
Interest 17,648,545 17,001,079 16,190,295 15,612,649 11,595,913 10,745,024 10,252,003 7,708,164
Benefit payments, including refunds of member contributions (11,241,936) (15,048,127) (9,973,991) (8,172,571) (8,860,156) (7,789,289) (6,880,888) (6,004,033)
Changes of benefit terms (1,368,197) (1,937,366) (299,442) - 22,002,473 1,358,032 - -
Differences between expected and actual experiences - - 1,239,143 3,555,655 3,657,687 6,532,000 - -
Changes of assumptions - - - - 19,913,151 2,532,160 - -
Net changes in total pension liability 11,987,602 7,027,463 13,720,309 16,046,473 53,212,683 16,502,129 6,879,965 8,626,348
Total pension liability - beginning 249,049,177 242,021,714 228,301,405 212,254,932 159,042,249 142,540,120 135,660,155 127,033,807
Total pension liability - ending (a)261,036,779$ 249,049,177$ 242,021,714$ 228,301,405$ 212,254,932$ 159,042,249$ 142,540,120$ 135,660,155$
Plan fiduciary net position
Contributions - employer 19,210,540$ 12,137,468$ 11,825,000$ 10,510,000$ 7,010,000$ 6,621,156$ 6,786,549$ 6,017,521$
Contributions - member 2,527,417 2,183,984 2,119,985 2,094,346 1,955,511 1,873,710 1,871,200 1,876,133
Net investment income 37,174,903 5,025,847 6,676,652 9,409,621 10,676,800 628,709 4,747,193 12,817,264
Receipts of In-kind - - - - - - 220,613 -
Benefit payments, including refunds of member contributions (11,241,936) (15,048,127) (9,973,991) (8,172,571) (8,860,156) (7,789,289) (6,880,887) (6,004,103)
Administrative expense (138,164) (172,390) (175,860) (150,795) (130,631) (98,464) (604,197) (238,016)
Net changes in plan fiduciary net position 47,532,760 4,126,782 10,471,786 13,690,601 10,651,524 1,235,822 6,140,471 14,468,799
Plan fiduciary net positions - beginning 132,288,002 128,161,220 117,689,434 103,998,833 93,347,309 92,111,487 85,971,016 71,502,217
Plan fiduciary net positions - ending (b)179,820,762$ 132,288,002$ 128,161,220$ 117,689,434$ 103,998,833$ 93,347,309$ 92,111,487$ 85,971,016$
County's net pension - liability - ending (a) - (b)81,216,017$ 116,761,175$ 113,860,494$ 110,611,971$ 108,256,099$ 65,694,940$ 50,428,633$ 49,689,139$
Plan fiduciary net position as a percentage of total pension liability 68.89%53.12%52.95%51.55%49.00%58.69%64.62% 63.37%
Covered employee payroll 38,896,000$ 39,131,000$ 36,785,000$ 34,848,986$ 33,462,000$ 31,662,000$ 33,098,009$ 35,288,757$
Net liability as a percentage of covered payroll 208.80% 298.39% 309.53% 317.40% 323.52% 207.49% 152.36% 140.81%
Annual money-weighted rate of return, net of investment expense 28.10%3.92%5.67%9.05%11.44%0.68%5.52% 17.93%
Notes to schedule:
This information is not available for FY13 and prior.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Schedule of General Employees’ Pension Fund Employer Contributions
June 30, 2021
117
2021 2020 2019 2018 2017 2016 2015 2014
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Schedule of Changes in Pension Fund Net Pension Liability and Related Ratios – Length of Service Award Fund
June 30, 2021
118
2021 2020 2019 2018 2017 2016 2015 2014
Total pension liability
Service Cost: Retirement benefits Administration 246,501$ 237,335$ 226,280$ 244,565$ 234,716$ 157,984$ 143,037$ 147,049$
Interest 826,896 823,402 707,838 702,309 580,130 968,187 922,814 872,518
Differences between expected and actual experiences 92,770 (222,174) 925,489 24,530 995,034 (6,285,232) - -
Changes of assumptions - (149,195) 343,476 - 356,243 906,099 - -
Benefit payments, including refunds of member contributions (653,016) (629,306) (588,909) (555,590) (518,538) (490,872) (461,316) (431,634)
Net changes in total pension liability 513,151 60,062 1,614,174 415,814 1,647,585 (4,743,834) 604,535 587,933
Total pension liability - beginning 11,731,973 11,671,911 10,057,737 9,641,923 7,994,338 12,738,172 12,133,637 11,545,704
Total pension liability - ending (a)12,245,124$ 11,731,973$ 11,671,911$ 10,057,737$ 9,641,923$ 7,994,338$ 12,738,172$ 12,133,637$
Plan fiduciary net position
Contributions - employer 564,557$ 564,557$ 460,000$ 600,000$ 600,000$ -$ 600,000$ 600,000$
Net investment income 2,866,396 347,769 503,259 721,822 852,460 55,233 381,511 1,074,025
Receipts of In-kind - - - - - - - 15,232
Benefit payments, including refunds of member contributions (653,016) (629,306) (588,909) (555,590) (518,538) (490,872) (461,316) (431,634)
Administrative expense (14,195) (29,543) (34,803) (35,075) (30,524) (20,610) (23,215) (27,429)
Net changes in plan fiduciary net position 2,763,742 253,477 339,547 731,157 903,398 (456,249) 496,980 1,230,194
Plan fiduciary net positions - beginning 9,734,615 9,481,138 9,141,591 8,410,434 7,507,036 7,963,285 7,466,305 6,236,111
Plan fiduciary net positions - ending (b)12,498,357$ 9,734,615$ 9,481,138$ 9,141,591$ 8,410,434$ 7,507,036$ 7,963,285$ 7,466,305$
County's net pension - liability - ending (a) - (b)(253,233)$ 1,997,358$ 2,190,773$ 916,146$ 1,231,489$ 487,302$ 4,774,887$ 4,667,332$
Plan fiduciary net position as a percentage of total pension liability 102.07%82.98%81.23%90.89%87.23%93.90%62.52% 61.53%
Covered employee payroll NA NA NA NA NA NA NA NA
Net liability as a percentage of covered payroll NA NA NA NA NA NA NA NA
Annual money-weighted rate of return, net of investment expense 29.45%3.67%5.51%8.58%11.36%0.69%5.11% 17.22%
Notes to schedule:
This information is not available for FY13 and prior.
Benefit changes None.
Change of assumptions
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Schedule of Volunteer Length of Service Award Fund Employer Contributions
June 30, 2021
119
2021 2020 2019 2018 2017 2016 2015 2014
Actuarially determined contribution 565,000$ 565,000$ 455,000$ 467,000$ 467,000$ -$ 600,000$ 585,843$
Contributions in relation to the actuarially determined contributions 565,000 565,000 460,000 600,000 600,000 - 600,000 600,000
Contributions deficiency (excess)-$ -$ (5,000)$ (133,000)$ (133,000)$ -$ -$(14,157)$
Covered employee payroll NA NA NA NA NA NA NA NA
Contributions as a percentage of covered employee payroll NA NA NA NA NA NA NA NA
Notes to schedule:
Valuation date
Methods and assumptions used to determine contribution rates:
Actuarial cost method Projected Unit Credit
Amortization method Level Percentage of Payroll
Remaining amortization period 11 to 15 years (closed)
Asset valuation method Market Value
Inflation 3.00%
Salary increases None
Investment rate of return 7.25%, net of pension plan investment expense, including inflation
Retirement age Normal retirement age
Mortality Pub-2010 Safety Retirees Headcount-Weighted Mortality with fully generational projection using scale MP2019
This information is not available for FY13 and prior.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Combining Statements of Financial Schedules
June 30, 2021
120
Non-Major Governmental Funds
The Grant Management Fund is a special revenue fund used to account for all activities
conducted by this department of the County. The Grant Management core function is to
coordinate services and identify needs of the children, youth and families of Washington County.
Cascade Town Centre is a special revenue fund used to account for certain maintenance related
expenditures at the former Fort Ritchie Army site.
The Inmate Welfare Fund is a special revenue fund used to account for commissary activities at
the Washington County Detention Center and other inmate related revenue and expenses.
The Contraband Fund is a special revenue fund used for the deposit and temporary holding of
seized U.S. Currency related to Narcotics Investigations. These monies are held in escrow
pending civil or criminal court proceedings or abandonment. Released funds are used for law
enforcement related expenses within Washington County at the discretion of the Board of
Directors for the Washington County Narcotics Task Force.
The Agricultural Education Center Fund is a special revenue fund used to account for all
transactions of the Agricultural Education Center (Center). The purpose of this Center is to
promote agricultural pursuits in Washington County and to educate the general public and
members of the agricultural community in all areas regarding agriculture in the County.
The Hotel Rental Tax Fund is a special revenue fund for accounting of taxes collected on
transient charges paid to a hotel or motel located in the County, and for the distribution of the tax
revenue to the Hagerstown/Washington County Convention and Visitors Bureau, municipalities
and for special projects for the County.
The Gaming Fund is a special revenue fund for accounting of permits and licensing fees, for tip
jar and bingo gaming activity. The Gaming Fund distributes funds to the various fire and rescue
companies and charitable organizations in the County.
The Land Preservation Fund is a special revenue fund established to account for State and
County programs related to preserving agriculture land in the County. A portion of the County’s
transfer tax is used to purchase permanent easements through an installment purchase program
and a portion of the transfer tax is remitted to the State for the purchase of easements and
transferable development rights.
The Hagerstown/Eastern Panhandle Metropolitan Planning Organization (HEPMPO) Fund is a
special revenue fund used to account for transportation planning activities. The objective of the
organization is to ensure that a continuing, cooperative, and comprehensive approach for short-
and long-range transportation planning is established and maintained for the metropolitan area.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Combining Statements of Financial Schedules (continued)
June 30, 2021
121
Non-Major Proprietary Funds
The Public Transit Fund accounts for the activities of the public bus transportation system.
The Golf Course Fund accounts for activities at the Black Rock Golf Course including an
18-hole golf course, a full-service pro shop, and a public restaurant.
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Combining Balance Sheet – Non-Major Governmental Funds
As of June 30, 2021
122
Cascade Agricultural Hotel Total
Grant Town Inmate Education Rental Land Non-major
Management Centre Welfare Contraband Center Tax Gaming Preservation HEPMPO Funds
Cash -$ 1,858,978$ 317,972$ 380,614$ 19,616$ 1,751,918$ 2,027,456$ 1,960,536$ -$ 8,317,090$
Accounts receivable - - - - - 248,222 138,067 - - 386,289
Due from other governmental agencies 3,772,528 - - - - - - - 262,961 4,035,489
TOTAL ASSETS 3,772,528$ 1,858,978$ 317,972$ 380,614$ 19,616$ 2,000,140$ 2,165,523$ 1,960,536$ 262,961$ 12,738,868$
LIABILITIES AND FUND BALANCES
Accounts payable 489,563$ 3,615$ 16,099$ 1,933$ 10,524$ 332,198$ 1,994,941$ 142,376$ 31,014$ 3,022,263$
Accrued expenses 10,955 - 483 - 2,438 - 7,347 3,647 1,267 26,137
Due to other funds 48,184 - - - - - - - 192,818 241,002
Unearned revenue 3,215,976 - - - - - 38,725 492,316 - 3,747,017
Other liabilities - 200 - 347,972 - - - 409,058 - 757,230
TOTAL LIABILITIES 3,764,678 3,815 16,582 349,905 12,962 332,198 2,041,013 1,047,397 225,099 7,793,649
Restricted - - 301,390 - - 1,667,942 - 400,343 - 2,369,675
Committed - 1,855,163 - - - - - 512,796 - 2,367,959
Assigned 7,850 - - 30,709 6,654 - 124,510 - 37,862 207,585
TOTAL FUND BALANCES 7,850 1,855,163 301,390 30,709 6,654 1,667,942 124,510 913,139 37,862 4,945,219
TOTAL LIABILITIES AND FUND BALANCES 3,772,528$ 1,858,978$ 317,972$ 380,614$ 19,616$ 2,000,140$ 2,165,523$ 1,960,536$ 262,961$ 12,738,868$
ASSETS
LIABILITIES
FUND BALANCES
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances –
Non-Major Governmental Funds
For the Year Ended June 30, 2021
123
Cascade Agricultural Hotel Total
Grant Town Inmate Education Rental Land Non-major
Management Centre Welfare Contraband Center Tax Gaming Preservation HEPMPO Funds
Other local taxes -$ -$ -$ -$ -$ 1,767,491$ -$ 207,658$ -$ 1,975,149$
Licenses and permits - - - - --2,649,910 - - 2,649,910
Charges for services - - 492,736 - 33,165 - - - - 525,901
Reimbursed expenses - 7,005 - - 1,080 - - - - 8,085
Miscellaneous revenues 44,718 1,865,607 108,133 57,981 -- 750 - 24,196 2,101,385
Shared taxes and grants 2,198,406 - - - -- - 2,134,795 438,692 4,771,893
TOTAL REVENUE 2,243,124 1,872,612 600,869 57,981 34,245 1,767,491 2,650,660 2,342,453 462,888 12,032,323
Public safety - -490,177 149,697 -- 1,230,838 - - 1,870,712
Parks, recreation and culture - -- - 232,854 - - - - 232,854
Land preservation - -- - -- - 2,546,937 - 2,546,937
General operations 162,553 547,003 - - -220,185 186,091 - - 1,115,832
Community promotion 2,363,123 -- - -1,358,294 1,235,640 - 465,608 5,422,665
TOTAL EXPENDITURES 2,525,676 547,003 490,177 149,697 232,854 1,578,479 2,652,569 2,546,937 465,608 11,189,000
EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENDITURES (282,552) 1,325,609 110,692 (91,716) (198,609) 189,012 (1,909) (204,484) (2,720) 843,323
OTHER FINANCING SOURCES
Transfers in 273,080 150,000 - - 199,610 239,000 - 435,440 27,700 1,324,830
Transfers out - -- - -(24,747) - -- (24,747)
TOTAL OTHER FINANCING SOURCES (USES)273,080 150,000 - - 199,610 214,253 - 435,440 27,700 1,300,083
NET CHANGES IN FUND BALANCES (9,472) 1,475,609 110,692 (91,716) 1,001 403,265 (1,909) 230,956 24,980 2,143,406
FUND BALANCES - BEGINNING OF YEAR 17,322 379,554 190,698 122,425 5,653 1,264,677 126,419 682,183 12,882 2,801,813
FUND BALANCES - END OF YEAR 7,850$ 1,855,163$ 301,390$ 30,709$ 6,654$ 1,667,942$ 124,510$ 913,139$ 37,862$ 4,945,219$
REVENUE
EXPENDITURES
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Combining Statement of Net Position – Non-Major Proprietary Funds
As of June 30, 2021
124
Public Golf Total
Transit Course Non-Major
Fund Fund Funds
ASSETS
Current Assets:
Cash and short-term investments 703,841$ 831,560$ 1,535,401$
Accounts receivable 30 1,825 1,855
Unbilled receivables 40 - 40
Due from other governmental agencies 584,985 - 584,985
Inventories 169,534 28,004 197,538
Total current assets 1,458,430 861,389 2,319,819
Noncurrent Assets:
Projects under construction 4,752 - 4,752
Property plant and equipment 7,215,857 5,103,702 12,319,559
Accumulated depreciation (4,888,543) (3,137,102) (8,025,645)
Total noncurrent assets 2,332,066 1,966,600 4,298,666
TOTAL ASSETS 3,790,496 2,827,989 6,618,485
LIABILITIES
Current Liabilities:
Accounts payable 40,786 77,380 118,166
Accrued expenses 81,335 45,198 126,533
Compensated absences 67,881 25,791 93,672
Other liabilities - 53,148 53,148
Total current liabilities 190,002 201,517 391,519
Noncurrent Liabilities:
Compensated absences 22,627 8,597 31,224
Total noncurrent liabilities 22,627 8,597 31,224
TOTAL LIABILTIES 212,629 210,114 422,743
NET POSITION
Net investment in capital assets 2,332,066 1,966,600 4,298,666
Unrestricted 1,245,801 651,275 1,897,076
TOTAL NET POSITION 3,577,867$ 2,617,875$ 6,195,742$
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Combining Statement of Revenue, Expenses and Changes in Fund Net Position –
Non-Major Proprietary Funds
For the Year Ended June 30, 2021
125
Public Golf Total
Transit Course Non-Major
Fund Fund Funds
OPERATING REVENUE
Charges for services 258,237$ 965,166$ 1,223,403$
Miscellaneous 2,643 23,928 26,571
TOTAL OPERATING REVENUE 260,880 989,094 1,249,974
OPERATING EXPENSES
Salaries and wages 1,479,477 405,229 1,884,706
Fringe benefits 651,120 198,513 849,633
Utilities 27,735 48,489 76,224
Insurance 31,531 9,334 40,865
Repairs and maintenance 265,354 74,023 339,377
Supplies 38,322 3,622 41,944
Cost of goods sold - 85,753 85,753
Contracted services 101,674 4,318 105,992
Rentals and leases 38,867 68,825 107,692
Other operating 227,695 121,836 349,531
Controllable assets 1,810 9,919 11,729
Depreciation 274,622 96,848 371,470
TOTAL OPERATING EXPENSES 3,138,207 1,126,709 4,264,916
OPERATING LOSS (2,877,327) (137,615) (3,014,942)
OTHER INCOME
Interest, penalties & fees (1,631) - (1,631)
Gain on disposal of assets - (8,005) (8,005)
TOTAL OTHER INCOME (1,631) (8,005) (9,636)
LOSS BEFORE OPERATING TRANSFERS AND GRANTS (2,878,958) (145,620) (3,024,578)
OPERATING TRANSFERS IN 699,760 337,840 1,037,600
OPERATING TRANSFERS OUT (17,950) - (17,950)
GRANTS FOR OPERATIONS 1,949,906 - 1,949,906
LOSS BEFORE CAPITAL TRANSFERS AND GRANTS (247,242) 192,220 (55,022)
CAPITAL TRANSFERS 54,000 66,000 120,000
GRANTS FOR CAPITAL PROJECTS 300,000 17,957 317,957
CHANGES IN NET POSITION 106,758 276,177 382,935
NET POSITION - BEGINNING OF YEAR 3,471,109
NET POSITION - END OF YEAR 3,577,867$ 2,617,875$ 6,195,742$
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Combining Statement of Cash Flows – Non-Major Proprietary Funds
For the Year Ended June 30, 2021
126
Public Golf Total
Transit Course Non-Major
Fund Fund Funds
Cash Flows from Operating Activities
Receipts from customers (86,232)$ 988,396$ 902,164$
Payments to suppliers (738,818) (378,329) (1,117,147)
Payments to employees (2,109,341) (603,111) (2,712,452)
Net Cash Used by Operating Activities (2,934,391) 6,956 (2,927,435)
Cash Flows from Noncapital Financing Activities
Operating contributions 2,607,791 337,840 2,945,631
Net Cash Provided by Noncapital Financing Activities 2,607,791 337,840 2,945,631
Cash Flows from Capital and Related Financing Activities
Acquisition and construction of capital assets 10,092 (105,109) (95,017)
Loss on the sale of assets - (8,005) (8,005)
Interest Expense (1,631) - (1,631)
Contribution for capital acquisitions 354,000 83,957 437,957
Net Cash Provided (Used) by Capital and Related Financing Activities 362,461 (29,157) 333,304
Cash Flows from Investing Activities
Interest on investments - - -
Net change in cash 35,861 315,639 351,500
Cash, beginning of year 667,980 515,921 1,183,901
Cash, End of Year 703,841$ 831,560$ 1,535,401$
Capital Lease Obligation (24,192)$ -$ (24,192)$
Reconciliation of Operating Loss to Net Cash from Operating Activities
Operating loss (2,877,327)$ (137,615)$ (3,014,942)$
Adjustments to reconcile operating loss to net cash
from operating activities:
Depreciation 274,622 96,848 371,470
Changes in assets and liabilities:
Accounts receivable 166 (698) (532)
Unbilled receivables 28 - 28
Due to/from other government entities (347,306) - (347,306)
Inventories (24,299) (7,357) (31,656)
Accounts payable and other liabilities 18,469 46,971 65,440
Accrued expenses 12,212 8,971 21,183
Compensated absences 9,044 (164) 8,880
Net Cash Used by Operating Activities (2,934,391)$
BUDGET AND ACTUAL SCHEDULE
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Schedule of Revenue, Expenditures, and Changes in Fund Balance-Budget and Actual
General Fund
For the Year Ended June 30, 2021
128
Variance with
Budgeted Amounts Final Budget -
Original Final Actual Amounts Positive (Negative)
REVENUE
Property Taxes
Real property tax 119,464,580$ 119,464,580$ 119,460,613$ (3,967)$
Personal property tax 14,057,110 14,057,110 15,402,221 1,345,111
Property tax interest income 395,000 395,000 508,130 113,130
Other property tax 745,330 745,330 815,374 70,044
State administrative fees (620,000) (620,000) (496,814) 123,186
Property tax discounts and credits (1,828,950) (1,828,950) (1,870,530) (41,580)
Total Property Taxes 132,213,070 132,213,070 133,818,994 1,605,924
Other Local Taxes
Income tax 88,483,080 117,483,080 119,254,813 1,771,733
Admissions and amusement tax 210,000 210,000 79,508 (130,492)
Recordation tax 6,000,000 6,000,000 11,001,009 5,001,009
Trailer tax 250,000 250,000 253,943 3,943
Total Other Local Taxes 94,943,080 123,943,080 130,589,273 6,646,193
Other Revenues
Licenses and permits 1,161,400 1,161,400 1,374,019 212,619
Court costs and fines 1,870,100 1,870,100 1,451,977 (418,123)
Charges for services 1,449,620 1,449,620 1,026,841 (422,779)
Reimbursed expenses 1,003,340 1,003,340 1,106,950 103,610
Miscellaneous revenues 386,970 472,010 625,111 153,101
Grant and shared revenues 2,369,000 22,538,649 22,158,043 (380,606)
Interest income 500,000 500,000 594,245 94,245
Highway revenues 2,409,730 2,410,840 2,252,613 (158,227)
Total Other Revenues 11,150,160 31,405,959 30,589,799 (816,160)
TOTAL REVENUE 238,306,310 287,562,109 294,998,066 7,435,957
EXPENDITURES
General Government
Legislative
County Commissioners 339,730 343,365 344,160 (795)
County Clerk 190,100 169,359 150,905 18,454
County Administrator 356,470 280,002 164,677 115,325
Public Relations & Marketing 467,100 471,625 457,678 13,947
Purchasing 502,630 508,095 491,739 16,356
Total Legislative 1,856,030 1,772,446 1,609,159 163,287
Judicial
Circuit Court 1,867,230 1,889,930 1,790,270 99,660
Orphan's Court 36,370 36,810 36,178 632
State's Attorney 3,963,170 4,008,417 3,919,608 88,809
Sheriff - Judicial 2,978,600 3,011,376 2,850,450 160,926
Sheriff - Process Servers 167,660 169,764 125,195 44,569
Grants - 523,826 504,052 19,774
Total Judicial 9,013,030 9,640,123 9,225,753 414,370
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Schedule of Revenue, Expenditures, and Changes in Fund Balance-Budget and Actual
General Fund (continued)
For the Year Ended June 30, 2021
129
Variance with
Budgeted Amounts Final Budget -
Original Final Actual Amounts Positive (Negative)
Election Board 1,393,740$ 1,486,703$ 1,494,691$ (7,988)$
Financial Administration
Budget and Finance 1,566,430 1,606,359 1,520,336 86,023
Independent Auditing 70,000 70,000 61,221 8,779
Treasurer 551,740 552,378 515,436 36,942
Information Technologies 2,670,900 2,643,271 2,545,326 97,945
Total Financial Administration 4,859,070 4,872,008 4,642,319 229,689
County Attorney 738,650 745,942 737,480 8,462
Human Resources 1,064,010 1,034,760 1,006,181 28,579
Planning and Zoning
Planning and Zoning 805,250 761,923 691,640 70,283
Board of Zoning Appeals 55,840 56,305 43,715 12,590
Grants - 3,406 3,405 1
Total Planning and Zoning 861,090 821,634 738,760 82,874
Public Works
Department of Public Works 246,120 248,824 244,510 4,314
Plan Review and Permitting 1,520,230 1,431,202 1,283,022 148,180
Engineering 2,344,110 2,214,740 1,880,691 334,049
Construction 2,147,450 2,134,741 1,955,988 178,753
Total Public Works 6,257,910 6,029,507 5,364,211 665,296
County Owned Buildings
Martin Luther King Center 99,100 99,100 75,291 23,809
Administrative Building 316,600 306,600 287,734 18,866
Administrative Building II - - (280) 280
Court House 578,090 375,376 372,491 2,885
County Office Building 213,230 213,230 201,739 11,491
Administration Annex 55,110 55,110 43,674 11,436
Central Services 128,300 128,300 192,000 (63,700)
Rental Properties 6,000 6,000 664 5,336
Library Maintenance 44,000 44,000 46,470 (2,470)
Dwyer Center 33,590 33,590 16,668 16,922
Election Board Facility 60,170 70,170 87,731 (17,561)
Senior Center 11,000 11,000 7,164 3,836
Public Facilities Annex 77,600 77,600 77,420 180
T otal County Owned Buildings 1,622,790 1,420,076 1,408,766 11,310
Community Promotion
Contributions to Non-profits 1,719,000 1,719,000 1,714,499 4,501
Business Development 694,220 700,936 631,764 69,172
Grants - 13,046,949 13,530,637 (483,688)
Total Community Promotion 2,413,220 15,466,885 15,876,900 (410,015)
Total General Government 30,079,540 43,290,084 42,104,220 1,185,864
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Schedule of Revenue, Expenditures, and Changes in Fund Balance-Budget and Actual
General Fund (continued)
For the Year Ended June 30, 2021
130
Variance with
Budgeted Amounts Final Budget -
Original Final Actual Amounts Positive (Negative)
Public Safety
Sheriff Departments
Patrol 12,696,080$ 12,843,164$ 12,260,908$ 582,256$
Sheriff Auxiliary - - 56,171 (56,171)
Narcotics Task Force 956,850 928,192 876,465 51,727
Wash. County Police Academy 99,000 99,000 42,162 56,838
Grants - 972,548 754,277 218,271
Total Sheriff Departments 13,751,930 14,842,904 13,989,983 852,921
Fire Operations
Volunteer Fire and Rescue - County Grants 7,576,420 7,697,107 7,241,346 455,761
Air Unit 28,720 36,420 38,784 (2,364)
Special Operations 118,840 182,340 174,606 7,734
Total Fire and Rescue Services 7,723,980 7,915,867 7,454,736 461,131
Corrections
Detention Center 16,072,200 16,155,120 15,653,877 501,243
Central Booking 1,055,130 1,066,623 930,330 136,293
Day Reporting Center 479,460 482,298 348,386 133,912
Total Corrections 17,606,790 17,704,041 16,932,593 771,448
Other Public Safety
911 - Communications 5,896,870 5,975,096 5,821,331 153,765
Wireless Communications 1,329,300 1,336,340 1,295,751 40,589
Emergency Management 226,860 210,112 170,472 39,640
EMS Operations 2,785,900 3,036,830 2,826,792 210,038
Fire Operations 2,608,540 2,562,591 2,458,967 103,624
Forensic Investigator 25,000 25,000 33,870 (8,870)
Civil Air Patrol 3,600 3,600 3,600 -
Animal Control 1,401,600 1,401,600 1,401,600 -
Grants - 5,080,027 4,716,227 363,800
Other Public Safety 14,277,670 19,631,196 18,728,610 902,586
Total Public Safety 53,360,370 60,094,008 57,105,922 2,988,086
Health 2,339,270 2,339,270 2,339,270 -
Social Services 435,560 435,560 435,560 -
Education 113,243,390 113,243,390 113,243,390 -
Parks, Recreation, and Culture
Total Contributions to Other Agencies 3,182,010 3,182,010 3,182,010 -
Parks Department 2,205,190 1,124,230 1,072,844 51,386
Buildings, Grounds & Facilities - 1,096,547 883,176 213,371
Martin L. Snook Park Pool 149,000 150,903 103,549 47,354
Parks and Recreation 1,035,260 1,178,893 1,053,071 125,822
Grants - 1,313 - 1,313
Total Parks, Recreation, and Culture 6,571,460 6,733,896 6,294,650 439,246
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Schedule of Revenue, Expenditures, and Changes in Fund Balance-Budget and Actual
General Fund (continued)
For the Year Ended June 30, 2021
131
Variance with
Budgeted Amounts Final Budget -
Original Final Actual Amo unts Positive (Negative)
Conservation of Natural Resources
Weed Control 318,200$ 321,654$ 122,445$ 199,209$
Agricultural Extension Service 240,820 240,820 240,821 (1)
Cooperative Extension 38,730 38,730 38,730 -
Soil Conservation Service 218,180 218,180 218,180 -
Environmental Pest Management 45,500 45,500 7,230 38,270
Total Conservation of Natural Resources 861,430 864,884 627,406 237,478
Highway 11,736,350 11,737,460 11,027,895 709,565
General Operations 518,180 518,180 476,779 41,401
Unallocated Employee Insurance and Benefits 125,000 7,125,000 5,417,016 1,707,984
Intergovernmental
Golf Course operating transfer 337,840 337,840 337,840 -
HEPMPO operating transfer 9,750 9,750 9,750 -
Land Preservation operating transfer 30,880 30,880 35,440 (4,560)
Utility Administration operating transfer 232,070 232,070 234,355 (2,285)
Water operating transfer 107,370 107,370 107,370 -
Public Transit operating transfer 699,760 699,760 699,760 -
Airport operating transfer - - - -
Capital Projects operating transfer 800,000 23,109,544 32,109,994 (9,000,450)
Solid Waste operating transfer 496,080 496,080 496,080 -
Gaming operating transfer - - - -
Grants Management operating transfer 273,080 273,080 273,080 -
Agricultural Education Center operating transfer 199,610 199,610 199,610 -
Cascade Town Centre operating transfer - 238,350 150,000 88,350
Municipality in lieu of bank shares 38,550 38,550 38,543 7
Total Intergovernmental 3,224,990 25,772,884 34,691,822 (8,918,938)
Billables - - 193,162 (193,162)
Debt Service 15,810,770 15,407,493 15,401,668 5,825
TOTAL EXPENDITURES 238,306,310 287,562,109 289,358,760 (1,796,651)
EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES -$ -$ 5,639,306$ 5,639,306$
OTHER FINANCING SOURCES (USES)
Proceeds from capital lease 385,579
Principal amount of new debt for advance refunding 14,007,250
Deposit to escrow fund for advance refunding and repayment of loans (14,007,250)
TOTAL OTHER FINANCING SOURCES (USES)385,579
NET CHANGES IN FUND BALANCE 6,024,885
FUND BALANCE - BEGINNING 55,974,199
FUND BALANCE - ENDING 61,999,084$
OTHER SCHEDULE
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
Local Management Board – Schedule of Revenue and Expenditures – Regulatory Basis
For the Year Ended June 30, 2021
133
REVENUE
Community Partnership Agreement (CPA)
Governor's Office for Children 610,885$
Non- Community Partnership Agreement (Non-CPA)
General Fund 273,080
Md State Department of Aging 25,440
Md State Department of Education 410,465
Dept. of Housing and Community Development 1,196,333
Total Non-Community Partnership Agreement Revenue 1,905,318
TOTAL REVENUE 2,516,203
EXPENDITURES
Community Partnership Agreement (CPA)
Administrative :
Salaries 60,799
Benefit Costs 47,461
Small office equipment -
Office supplies 546
Printing expenses -
Travel Expenses -
Training -
Controllable Assets 454
Total CPA Administrative Expenditures 109,260
Programs:
Western MC Disconnected Youth 41,244
GOC-School Based Mental Health 224,689
Family Centered Support Services 70,940
IACM for Children of Incarcerated Parents 57,996
GOC - Local Care Team Coordinator 49,000
GOC - WC Reengagement Center for Disconnected Youth 57,756
Total CPA Program Expenditures 501,625
Non-Community Partnership Agreement (CPA)
Administrative:
Salaries 102,931
Benefit Costs 56,608
Advertising 60
Community Service Awards 400
Dues & Subscriptions 302
Office Supplies 1,070
Personal Mileage -
Postage -
Printing Expenses -
Travel Expenses -
Entertainment/business expense -
Training -
Copy Machine Rental 855
Telephone Expenses 322
Controllable Assets 4
Total Non-CPA Administrative Expenditures 162,552
Programs:
School Based Mental Health 120,000
Commission on Aging 25,440
MSDE - Healthy Families 410,465
Dept. of Housing and Community Development 1,196,333
Total Non-CPA Program Expenditures 1,752,238
TOTAL EXPENDITURES 2,525,675
EXCESS OF REVENUE OVER EXPENDITURES (9,472)$
(This page has been left blank intentionally.)
WASHINGTON COUNTY, MARYLAND
APPENDIX B
PROPOSED FORM OF OPINION OF BOND COUNSEL
WITH RESPECT TO THE BONDS
[Date of Issuance]
County Commissioners of Washington County
Hagerstown, Maryland
Dear County Commissioners:
We have acted as Bond Counsel to County Commissioners of Washington County (the “Issuer” or the
“County”) in connection with the issuance of its $__________________ County Commissioners of Washington County
Public Improvement Bonds of 2022 (the “Bonds”), dated the date hereof. All capitalized terms not defined herein shall
have the meanings set forth in the Bonds.
We have examined the law and such certified proceedings and other materials as we deem necessary to render
the opinions set forth below. The scope of our engagement as bond counsel extends solely to an examination of the facts
and law incident to rendering the opinions specifically expressed herein.
As to questions of fact material to our opinion letter, we have relied upon the certified proceedings of the Issuer
and certifications by public officials, without undertaking to verify the same by independent investigation.
We have assumed the accuracy and truthfulness of all public records and of all certifications, documents and
other proceedings examined by us that have been executed or certified by public officials acting within the scope of
their official capacities, and we have not independently verified the accuracy or truthfulness thereof. We have also
assumed the genuineness of the signatures appearing upon such public records, certifications, documents and
proceedings.
We have assumed the authenticity of all documents submitted to us as originals, the conformity to original
documents of all documents submitted to us as certified or photocopies and the authenticity of the originals of such
latter documents.
This opinion letter does not constitute or imply a recommendation of the market or financial value of the
Bonds or an assessment of the strength or appropriateness of the covenants by the Issuer, the possibility of default, the
eligibility or suitability of the Bonds as an investment, or any other legal or financial aspect of the Bonds not expressly
addressed herein.
We do not express any opinion herein regarding any law other than the law of the State of Maryland (the “State”)
and the federal law of the United States of America.
With respect to the executed and authenticated Bond of the issue of Bonds that we have examined, and Bonds
similarly executed and authenticated and identical thereto in form, except for numbers, interest rates, denominations,
maturities and CUSIP numbers, we are of the opinion that, under existing Maryland and federal law as of the date hereof:
(a) The Bonds are valid and legally binding general obligations of the Issuer to which its full
faith and credit and taxing power are pledged, and for the payment of which the Issuer is empowered and
directed to levy ad valorem taxes unlimited as to rate and amount upon all legally assessable property subject
to assessment for unlimited taxation in Washington County.
(b) To provide for the payment of the principal of and interest on the Bonds, the Issuer, by the
adoption of the Resolution, has covenanted to levy ad valorem taxes in rate and amount sufficient for that
purpose in each fiscal year in which provision must be made for the payment of such principal and interest.
WASHINGTON COUNTY, MARYLAND
(c) By the terms of the Act, the Bonds, their transfer, the interest payable thereon, and any income
derived therefrom (including any profit made in the sale thereof) shall be at all times exempt from State, county,
municipal or other taxation of every kind and nature whatsoever in the State, but no opinion is expressed as to
estate or inheritance taxes, or to any other taxes not levied or assessed directly on the Bonds, their transfer, the
interest thereon or the income therefrom.
(d) Under existing statutes, regulations and decisions, and assuming the accuracy of
certifications of the County, interest on the Bonds is excludable from gross income for federal income tax
purposes and is not a specific preference item for purposes of the federal alternative minimum tax. Interest
on the Bonds held by foreign corporations engaged in a trade or business in the United States may be subject
to the branch profits tax imposed by the Internal Revenue Code of 1986, as amended (the “Code”).
The opinions set forth in this paragraph (d) are subject to the condition that the County complies with all
requirements that must be satisfied subsequent to the issuance of the Bonds so that interest on the Bonds
continues to be excluded from gross income for federal income tax purposes. The County has covenanted
and agreed to comply with each such requirement in its Tax Certificate and Compliance Agreement of even
date herewith (the “Tax Certificate”). Failure to comply with certain requirements may cause interest on the
Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of
the Bonds. We assume no responsibility for, and will not monitor, compliance by the County with the
covenants and agreements contained in the Tax Certificate. In the event of noncompliance with such
covenants and agreements, available enforcement remedies may be limited by applicable provisions of law
and, therefore, may not be adequate to prevent the interest on the Bonds from becoming includable in gross
income for federal income tax purposes.
Other than as set forth in the preceding paragraphs (c) and (d), we express no opinion regarding the federal or
State income tax consequences arising with respect to the Bonds.
It is to be understood that the rights of the owners of the Bonds and the enforceability of the Bonds and the
Resolution may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting
creditors’ rights generally and by equitable principles, whether considered at law or in equity. In addition, the rights of
the owners of the Bonds and the enforceability of the Bonds and the Resolution may be subject to the valid exercise of
constitutional powers of the United States of America and of the sovereign police and taxing powers of the State of
Maryland or other governmental units having jurisdiction.
Our services as bond counsel have been limited to rendering the specific opinions expressed above based on
our review of such information and proceedings as we deem necessary to opine as to the validity of the Bonds and the
tax status of the interest payable on the Bonds as of their date of issuance. We have not been engaged and have not
undertaken to express an opinion as to the accuracy, completeness or sufficiency of the Official Statement or other
material relating to the Bonds and, accordingly, we express no opinion as to the accuracy, completeness or sufficiency
of any such information that may have been relied upon by any person in making a decision to purchase the Bonds.
The opinions expressed above are limited to the matters set forth above, and no other opinions should be
inferred beyond the matters expressly stated. This opinion letter is given as of its date and we assume no obligation to
revise or supplement this opinion letter to reflect any facts or circumstances that may hereafter come to our attention
or any changes in law that may hereafter occur.
Very truly yours,
WASHINGTON COUNTY, MARYLAND C-1
APPENDIX C
NOTICE OF SALE
WASHINGTON COUNTY, MARYLAND
(County Commissioners of Washington County)
$16,485,000* PUBLIC IMPROVEMENT BONDS OF 2022
(Full Faith and Credit Obligations of the
County Commissioners of Washington County)
Dated Date of Delivery
DTC Book-Entry
Overview and Amortization
Electronic bids only will be received via BidCOMP/Parity®/www.i-dealprospectus.com (“Parity”) on behalf
of County Commissioners of Washington County (the “County”) by the Chief Financial Officer of the County (the
“CFO”) on Tuesday, May 24, 2022 until 10:45 a.m. prevailing eastern time (“Eastern Time”), unless postponed as
described in this Notice of Sale (in either such case, the “Bid Date”) for the purchase of all (but not less than all) of the
County’s Public Improvement Bonds of 2022 (the “Bonds”). The Bonds will be dated their date of delivery. Interest
on the Bonds will be payable on January 1, 2023 and semiannually thereafter on July 1 and January 1 until maturity or
earlier redemption
All references in this Notice of Sale to the CFO shall be construed to be references to the Interim CFO if the
position of CFO is vacant at the applicable time. As of the date of this Notice of Sale, an Interim CFO is in place.
The Bonds are issued under the provisions Chapter 99 of the Laws of Maryland of 2018 and Title 6 of the
Code of Public Local Laws of Washington County, Maryland (2019 Edition) (the “Water and Sewer Act”), each as
amended as applicable. The Bonds are issued in accordance with Resolution No. RS-2022-XX adopted by the Board
of County Commissioners of Washington County (the “Board”) on May 3, 2022.
Manufacturers and Traders Trust Company, Baltimore, Maryland and Buffalo, New York, will act as the
Bond Registrar and Paying Agent for the Bonds.
The Bonds will be subject to principal amortization either through serial maturities or mandatory sinking
fund redemptions or a combination thereof (see “Serial and/or Term Bonds” below) on July 1 in the years and
principal amounts set forth below (the “Preliminary Amounts”), subject to the provisions of “Adjustments to
Principal Amounts” herein:
*Preliminary; subject to change
WASHINGTON COUNTY, MARYLAND C-2
Bonds
2023 520,000$ 2033 850,000$
2024 545,000 2034 885,000
2025 575,000 2035 920,000
2026 605,000 2036 945,000
2027 630,000 2037 975,000
2028 665,000 2038 1,005,000
2029 700,000 2039 1,040,000
2030 735,000 2040 1,065,000
2031 775,000 2041 1,100,000
2032 815,000 2042 1,135,000
Adjustments to Principal Amounts
Pre-sale, the County reserves the right to change the Preliminary Amounts from time to time up until 9:30
a.m. Eastern Time on the Bid Date, by changing the original aggregate principal amount of the Bonds and/or by
changing or eliminating the original aggregate principal amount of one or more of the maturities of the Bonds and,
including (without limitation), because the County has reduced the original aggregate principal amount of the Bonds to
be issued for any particular project or has determined not to use Bonds proceeds to fund a particular project. Should a
revision to the original aggregate principal amount of the Bonds and/or the principal amortization schedule for the
Bonds be made (the “Revised Amounts”), such revision will be published on Parity or TM3 News Service
(www.tm3.com) (“TM3”) not later than 9:30 a.m. Eastern Time on the Bid Date. In the event that no revisions are
made or that such revisions are not published on Parity or TM3 before 9:30 a.m. Eastern Time on the Bid Date, the
Preliminary Amounts will constitute the Revised Amounts. Bidders shall submit bids based on the Revised Amounts
and the Revised Amounts will be used to compare bids for the Bonds and to select a winning bidder for the Bonds.
After selecting the winning bid for the Bonds, the maturity schedule of the Bonds may be adjusted as
necessary in the determination of the County’s financial advisor in increments of $5,000. Any adjustments pursuant to
this paragraph will not increase or reduce the Revised Amounts by more than 15% of the amount of the winning bid.
The dollar amount bid for the Revised Amounts of the Bonds by the successful bidder therefor will be adjusted
proportionately to reflect any reduction or increase in the original aggregate principal amount of the Bonds, but the
coupon rates specified by the successful bidder for all maturities of the Bonds will not change. Any such maturity
schedule adjustments will be communicated to the successful bidder for the Bonds within six hours of the deadline for
submitting bids. Any such adjusted bid price will reflect changes in the dollar amount of the underwriter’s discount
and original issue discount or premium, if any, but will not change the underwriter’s discount per $1,000 of par amount
of the Bonds from the underwriter’s discount that would have been received based on the purchase price in the winning
bid, the coupon rates or the initial offering prices (as defined herein) specified by the successful bidder. The successful
bidder for the Bonds as so adjusted may not withdraw its bid or change the interest rates bid or initial offering
prices as a result of any changes made to the principal amounts of the Bonds within these limits. ALL BIDS
SHALL REMAIN FIRM UNTIL 5:00 P.M. EASTERN TIME.
WASHINGTON COUNTY, MARYLAND C-3
Serial Bonds and/or Term Bonds
A bidder for the Bonds may designate in its bid two or more consecutive principal amounts of the Revised
Amounts as a term bond, which matures on the maturity date of the last included principal amount of the sequence.
More than one such sequence of principal amounts of the Revised Amounts for the Bonds may be designated as term
bonds. Any term bond so designated shall be subject to mandatory redemption in each year on the principal payment
dates and in the entire amount of each serial maturity designated for inclusion in such term bond (as such principal
amounts may be adjusted as described in “Adjustments to Principal Amounts” above).
Purpose of Issue
The Bonds, are being issued to provide financing for costs of certain infrastructure projects, education
projects, public safety projects and environmental projects and for certain costs of issuance of the Bonds. A portion of
the costs of such projects and certain costs of issuance of the Bonds will be paid by the County from other available
funds.
Bid Specifications
Each bidder for the Bonds shall submit one bid on an “all or none” basis. Each bid must specify the amount
bid for the Bonds, which amount may not be less than 100% of par. Each bid for the Bonds must specify in multiples
of one-eighth ( 1/8 ) or one-twentieth ( 1/20 ) of one percent (1%) the rate or rates of interest per annum that the Bonds are
to bear but shall not specify (a) more than one interest rate for any Bonds having the same maturity, (b) a zero rate of
interest, or (c) any interest rate for any Bonds that exceeds the interest rate stated in such bid for any other Bonds by
more than 400 basis points
Electronic Bids Only
Bids must be submitted by electronic bidding via Parity, in the manner described below, and must be
submitted on the Bid Date by 10:45 a.m. Eastern Time. No bid for the Bonds will be accepted after the specified time
for receiving bids. To the extent any instructions or directions set forth in Parity conflict with this Notice of Sale, the
terms of this Notice of Sale shall control. For further information about Parity, potential bidders may contact Parity at
(212) 849-5021.
Disclaimer
Each prospective electronic bidder shall be solely responsible to submit its bid via Parity as described above.
Each prospective electronic bidder shall be solely responsible to make necessary arrangements to access Parity for the
purpose of submitting its bid in a timely manner and in compliance with the requirements of this Notice of Sale.
Neither the County nor Parity shall have any duty or obligation to provide or assure access to Parity to any prospective
bidder, and neither the County nor Parity shall be responsible for proper operation of or have any liability for any
delays or interruptions of, or any damages caused by Parity. The County is using Parity as a communication
mechanism, and not as the County’s agent, to conduct the electronic bidding for the Bonds. The County is not bound
by any advice and determination of Parity to the effect that any particular bid complies with the terms of this Notice of
Sale and in particular the bid parameters specified in this Notice of Sale. All costs and expenses incurred by
prospective bidders in connection with their submission of bids via Parity are the sole responsibility of the bidders; and
the County is not responsible, directly or indirectly, for any of such costs or expenses. If a prospective bidder
encounters any difficulty in submitting, modifying, or withdrawing a bid for the Bonds, such bidder should telephone
Parity at (212) 849-5021 and notify the County’s financial advisor, Davenport & Company LLC, by facsimile at
(866) 932-6660 and by telephone at (410) 296-9426.
WASHINGTON COUNTY, MARYLAND C-4
Electronic Bidding Procedures
Electronic bids must be submitted for the purchase of the Bonds via Parity. The deadline for submitting bids
via Parity on the Bid Date is 10:45 a.m. Eastern Time. Prior to that time, a prospective bidder may (1) submit the
proposed terms of its bid via Parity, (2) modify the proposed terms of its bid, in which event the proposed terms as last
modified will (unless the bid is withdrawn as described herein) constitute its bid for the Bonds, or (3) withdraw its
proposed bid. Once the deadline for submitting bids for the Bonds occurs, each bid therefor will constitute an
irrevocable offer to purchase the Bonds on the terms therein provided, subject to this Notice of Sale. The County shall
not be responsible for any malfunction or mistake made by, or as a result of the use of the facilities of, Parity, the use of
such facilities being the sole risk of the prospective bidder. For purposes of the electronic bidding process, the time
as maintained on Parity shall constitute the Eastern Time.
If any provision of this Notice of Sale shall conflict with the information provided by Parity as the approved
provider of electronic bidding services, this Notice of Sale shall control.
Basis of Award
Bids will be communicated electronically on the Bid Date at 10:45 a.m. Eastern Time. Any award of the
Bonds will be made on behalf of the County by the CFO. The successful bidder for the Bonds will be determined
based on the lowest interest cost to the County. The lowest interest cost for the Bonds shall be determined in
accordance with the true interest cost (“TIC”) method by doubling the semiannual interest rate (compounded semi-
annually) necessary to discount the debt service payments from the payment dates to the date of the Bonds and to the
price bid. If two or more bidders offer to purchase the Bonds at the same lowest interest cost, then such award will be
made to the bidder offering the highest purchase price. If two or more bidders offer to purchase the Bonds at the same
lowest interest cost, with the same purchase price, the County shall have the right to award all of the Bonds to one
bidder. The CFO will execute and deliver an order of award after the apparent successful bidder for the Bonds pays the
Good Faith Deposit provided for herein by federal funds wire transfer (see “Good Faith Deposit and Award” below).
Notwithstanding the foregoing, the County, by the CFO, reserves the right to reject any and all bids for the Bonds and
to waive any informality or irregularity in any bid, and the judgment of the CFO with respect to such matters shall be
final and binding upon all bidders with respect to the form and adequacy of any bid received for the Bonds and as to its
conformity to the terms of this Notice of Sale or with respect to the determination to reject any and all bids for the
Bonds.
Good Faith Deposits and Award
The apparent successful bidder for the Bonds shall submit a good faith deposit in the amount of $164,850
(the “Good Faith Deposit”) as provided below. The Good Faith Deposit will secure the County from any loss
resulting from the failure of the apparent successful bidder to comply with the terms of its bid. The apparent
successful bidder for the Bonds shall transfer the applicable Good Faith Deposit by wire transfer directly to the
County upon notification of identification of the apparent successful bidder, but in any case, no later than 3:00 p.m.
Eastern Time on the Bid Date (the “Deposit Deadline”). Wire instructions will be provided to the apparent
successful bidder for the Bonds by the County’s financial advisor upon verification of bids submitted, identification
of the apparent successful bidder for the Bonds and prior to the Deposit Deadline.
The apparent successful bidder for the Bonds will provide as quickly as it is available evidence of the wire
transfer to the County’s financial advisor by providing to the County’s financial advisor the federal funds reference
number. Notification of the award of the Bonds, if made, will be indicated on Parity and shall not be made until
after the County’s financial advisor has confirmation of receipt of the Good Faith Deposit therefor. If the apparent
successful bidder fails to so deliver the Good Faith Deposit by the Deposit Deadline, the County will have the option
to not award the Bonds without any liability to the apparent successful bidder and the apparent successful bidder
shall be responsible to the County for all consequential damages arising from such failure. Formal award of the
Bonds, if made, will be made by 5:00 p.m. on the Bid Date.
WASHINGTON COUNTY, MARYLAND C-5
At the time of delivery of the Bonds, the Good Faith Deposit will be applied against the purchase price for
the Bonds or will be retained as liquidated damages upon the failure of the successful bidder to take and pay for the
Bonds in accordance with the terms of its bid. The successful bidder for the Bonds shall have no right in or to the
Good Faith Deposit if it fails to complete the purchase of, and payment in full of, the Bonds for any reason
whatsoever, unless such failure of performance shall be caused by an act or omission of the County. No interest will
be paid upon the Good Faith Deposit to the successful bidder. Notwithstanding the foregoing, should the successful
bidder fail to pay for the Bonds at the price and on the date agreed upon, the County retains the right to seek further
compensation for damages sustained as a result of the successful bidder so doing.
If the original aggregate principal amount of the Bonds is adjusted as described above under “Adjustments
to Principal Amounts”, no adjustment will be made to the Good Faith Deposit.
Establishment of Issue Price for the Bonds
The County expects and intends that the provisions of U.S. Treasury Regulation Section 1.148-1(f)(3)(i)
(defining “competitive sale” for purpose of establishing the issue price of the Bonds) will apply to the initial sale of
the Bonds because (i) the County will disseminate this Notice of Sale to potential underwriters (as defined below) in
a manner that is reasonably designed to reach potential underwriters, (ii) all bidders will have an equal opportunity
to bid, (iii) the County may receive bids from at least three underwriters of municipal bonds that have established
industry reputations for underwriting new issuances of municipal bonds, and (iv) the County anticipates awarding
the sale of the Bonds to the bidder that submits a firm offer to purchase the Bonds at the lowest possible TIC, as set
forth herein. If such competitive sale requirements are met, the successful bid for the Bonds will be treated as a
“Qualified Competitive Bid”. If the competitive sale requirements are not met, the successful bid for the Bonds will
be treated as a “Nonqualified Competitive Bid”. It is noted that the procedures for a Nonqualified Competitive
Bid may require the winning bidder and, if applicable, other underwriters of the Bonds, to hold the initial
offering prices of the Bonds for some or all maturities of the Bonds for up to five (5) business days after the
sale date (as defined below), as further specified below.
By submitting a bid, each bidder (i) confirms that is was not given the opportunity to review other bids prior to
submitting its bid, (ii) confirms that its bid is a firm offer for the purchase of the Bonds, on the terms set forth in its
bid and this Notice of Sale (as this Notice of Sale may be modified in accordance with its terms), except as
permitted by this Notice of Sale, and (iii) represents that it has an established industry reputation for underwriting
new issuances of municipal bonds.
The County will advise the apparent successful bidder as promptly as possible after bids are received whether
its bid constitutes a Qualified Competitive Bid or a Nonqualified Competitive Bid.
If the apparent successful bid is a Qualified Competitive Bid, as promptly as possible after bids are received, the
County will notify the apparent successful bidder and such bidder, upon such notice, shall advise the County of the
reasonably expected initial offering price to the public (as defined below) of each maturity of the Bonds.
If the apparent successful bid is a Nonqualified Competitive Bid, the County shall treat (i) the first price at
which 10% of a maturity of the Bonds (the “10% test”) is sold to the public as of the date and time of award of the
Bonds as the issue price of that maturity, if applicable, and/or (ii) the initial offering price to the public as of the sale
date of any maturity of the Bonds as the issue price of that maturity (the “hold-the-offering-price rule”), in each case
applied on a maturity-by-maturity basis. If the apparent successful bid is a Nonqualified Competitive Bid, the
successful bidder shall advise the County if any maturity of the Bonds satisfies the 10% test as of the date and time
of the award of the Bonds. Any maturity of the Bonds as to which the successful bidder has not so advised the
County that the 10% test has been satisfied as of the date and time of award of the Bonds shall be subject to the
hold-the-offering-price rule. Bids will not be subject to cancellation if the hold-the-offering-price rule applies to any
maturity of the Bonds. Bidders should prepare their bids on the assumption that some or all of the maturities
of the Bonds will be subject to the hold-the-offering-price rule in order to establish the issue price of the
Bonds.
WASHINGTON COUNTY, MARYLAND C-6
By submitting a bid, the successful bidder shall (i) confirm that the underwriters have offered or will offer to
sell the Bonds to the public on or before the date of sale at the offering price or prices (the “initial offering prices”),
or at the corresponding yield or yields, set forth in the bid submitted by the successful bidder and (ii) agree, on
behalf of the underwriters participating in the purchase of the Bonds, that the underwriters will neither offer nor sell
unsold Bonds of any maturity to which the hold-the-offering-price rule shall apply to any person at a price that is
higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier
of the following: (1) the close of fifth (5th) business day after the sale date or (2) the date on which the underwriters
have sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering
price for that maturity to the public, if that occurs prior to the close of the fifth (5th) business day after the sale date.
For a Nonqualified Competitive Bid, the successful bidder shall promptly advise the County when the
underwriters have sold to the public 10% of any maturity subject to the hold-the-offering-price rule at a price that is
no higher than the initial offering price to the public, if that occurs prior to the close of the fifth (5th) business day
after the sale date.
The County acknowledges that, in making the representations set forth above, the successful bidder will rely on
(i) the agreement of each underwriter to comply with the hold-the-offering-price rule, as set forth in an agreement
among underwriters and the related pricing wires, (ii) in the event a selling group has been created in connection
with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to
comply with the hold-the-offering-price rule, as set forth in a selling group agreement and the related pricing wires,
and (iii) in the event that any underwriter is a party to a retail distribution agreement that was employed in
connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is party to such
agreement to comply with the hold-the-offering-price rule, as set forth in the retail distribution agreement and
related pricing wires. The County further acknowledges that each underwriter shall be solely liable for its failure to
comply with its agreement regarding the hold-the-offering-price rule and that no underwriter shall be liable for the
failure of any other underwriter, or of any dealer that is a member of a selling group, or of any broker-dealer that is a
party to a retail distribution agreement to comply with its corresponding agreement regarding the hold-the-offering-
price rule as applicable to the Bonds.
By submitting a bid, each bidder confirms that: (i) any agreement among underwriters, any selling group
agreement and each retail distribution agreement relating to the initial sale of the Bonds to the public, together with
the related pricing wires, contains or will contain language obligating each underwriter, each dealer who is a
member of the selling group, and each broker-dealer that is a party to such retail distribution agreement, as
applicable, to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allotted to it until
it is notified by the successful bidder that either the 10% test has been satisfied as to the Bonds of that maturity or all
Bonds of that maturity have been sold to the public and (B) comply with the hold-the-offering-price rule, if
applicable, in each case if and for so long as directed by the successful bidder and as set forth in the related pricing
wires and (ii) any agreement among underwriters relating to the initial sale of the Bonds to the public, together with
the related pricing wires, contains or will contain language obligating each underwriter that is a party to a retail
distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each
broker-dealer that is a party to such retail distribution agreement to (A) report the prices at which it sells to the
public the unsold Bonds of each maturity allotted to it until is notified by the successful bidder or such underwriter
that either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that maturity have been
sold to the public and (B) comply with the hold-the-offering-price rule, if applicable, in each case if and for so long
as directed by the successful bidder or such underwriter and as set forth in the related pricing wires.
Sale of any Bonds to any person that is a related party (as defined below) to an underwriter shall not constitute
sales to the public for purposes of this Notice of Sale. Further, for purposes of this Notice of Sale:
(i) “public” means any person (including an individual, trust, estate, partnership, association,
company, or corporation) other than an underwriter or related party to an underwriter;
(ii) “related party” generally means any two or more persons who have greater than 50 percent
common ownership, directly or indirectly;
WASHINGTON COUNTY, MARYLAND C-7
(iii) “sale date” means the date that the Bonds are awarded by the County to the successful bidder; and
(iv) “underwriter” means (A) any person that agrees pursuant to a written contract with the County (or
with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the
public, and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in
clause (A) of this definition to participate in the initial sale of the Bonds to the public (including a member of a
selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the public).
The successful bidder must deliver to the County at closing an “issue price” or similar certificate establishing
the issue price of the Bonds in accordance with U.S. Treasury Regulation 1.148-1, together with the supporting
pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit 1 (for a Qualified
Competitive Bid) or Exhibit 2 (for a Nonqualified Competitive Bid), as applicable, with such modifications as may
be appropriate or necessary, in the reasonable judgment of the successful bidder, the County and bond counsel to the
County.
All actions to be taken on behalf of the County under this Notice of Sale to establish the issue price of the
Bonds may be taken on behalf of the County by the County’s financial advisor, Davenport & Company LLC, and
any notice or report to be provided to the County may be provided to the County’s financial advisor Davenport &
Company LLC or bond counsel to the County.
Security
The full faith and credit and unlimited taxing power of the County are unconditionally pledged to the payment
of the principal of the Bonds and the interest to accrue thereon.
Book-Entry Only
The Bonds will be issued by means of a book-entry system with no physical distribution of bond certificates
made to the public. One bond certificate for each maturity of the Bonds will be issued to Cede & Co., the nominee of
The Depository Trust Company, (“DTC”), and immobilized in DTC’s custody or in the custody of the Bond Registrar
and Paying Agent. The book-entry system will evidence ownership of the Bonds in the principal amount of $5,000 and
integral multiples thereof, with transfers of ownership interest of each actual purchaser of a Bond effected on the
records of DTC and its participants. The successful bidder for the Bonds, as a condition to delivery of the Bonds, shall
be required to deposit the bond certificates with the Bond Registrar and Paying Agent to be held under DTC’s “FAST”
system, registered in the name of Cede & Co., DTC’s nominee. All fees due DTC shall be paid by the successful
bidder.
Principal and interest on the Bonds will be paid to Cede & Co., nominee of DTC, as registered owner of the
Bonds on the dates such principal and interest are payable.
Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC, and
transfer of principal and interest payments to beneficial owners of the Bonds by participants of DTC will be the
responsibility of such participants and other nominees of beneficial owners. The County will not be responsible or
liable for such transfers of payments or for maintaining, supervising or reviewing the records maintained by DTC, its
participants or persons acting through such participants.
DTC may determine not to continue to act as securities depository for the Bonds at any time by giving notice
to the County. The County may determine to select a different securities depository for the Bonds, or the County may
determine not to continue the book-entry system for the Bonds. If the County does not identify another qualified
securities depository to replace DTC with respect to the Bonds, the County will deliver replacement bonds in the form
of fully-registered certificates.
Optional Redemption
The Bonds that mature on or before July 1, 2032, are not subject to redemption at the option of the County
prior to their maturities. The Bonds that mature on or after July 1, 2033, are subject to redemption at the option of the
WASHINGTON COUNTY, MARYLAND C-8
County in whole or in part on any date on or after July 1, 2032, in any order of maturity directed by the County, at a
redemption price of the principal amount of the Bonds (or portions thereof) to be redeemed, plus accrued interest on the
principal amount being redeemed to the date fixed for redemption, without premium or penalty.
Legal Opinion
The Bonds will be issued and sold subject to approval as to legality by Funk & Bolton, P.A., Baltimore,
Maryland, bond counsel. The approving opinion of Funk & Bolton, P.A. will be delivered, upon request, to the
successful bidder for the Bonds, without charge, and the text of or a copy of the approving opinion will also be printed
on, or attached to, each Bond. The substantially final form of the opinion of bond counsel is included in the
Preliminary Official Statement referred to below as Appendix B.
CUSIP Numbers
CUSIP numbers for the Bonds will be applied for by the financial advisor to the County, but the County will
assume no obligation for the assignment or printing of such numbers on the Bonds or for the correctness of such
numbers, and neither the failure to print such numbers on any of the Bonds nor any error with respect thereto shall
constitute cause for failure or refusal by the successful bidder for the Bonds to accept delivery or make payment for the
Bonds.
Official Statement
Within seven business days after the award of the Bonds to the successful bidder therefor on the Bid Date, the
County will authorize its Official Statement, which is expected to be substantially in the form of the Preliminary
Official Statement referred to below. The Preliminary Official Statement has been deemed final by the County for the
purpose of Rule 15c2-12 of the Securities and Exchange Commission, subject to revision, amendment and completion
in a final Official Statement. The County will also issue any amendment or supplement to the Official Statement that
may be necessary between the date of the Official Statement and the date of delivery of the Bonds. If requested and
furnished to the County in writing by the successful bidder at or before the close of business on the Bid Date, the
County will include in the Official Statement such pricing and other information relating to the reoffering of the Bonds,
if any, as may be so furnished. If the successful bidder for the Bonds furnishes no such information, the Official
Statement will include the interest rates on the Bonds resulting from the bid of the successful bidder and the other
statements with respect to reoffering contained in the Preliminary Official Statement. Whether or not any such
information is included in the Official Statement, the successful bidder for the Bonds shall be responsible to the County
and its officials in all respects for the accuracy, fairness and completeness of such information, and for all decisions
made with respect to the use or omission of such information in any reoffering of the Bonds, including the presentation
or exclusion of any such information in any documents, including the Official Statement. Within seven business days
after the award of the Bonds, the successful bidder will also be furnished, without cost, with a reasonable number of
copies of the Official Statement. The successful bidder will also be furnished with any amendment or supplement to the
Official Statement, without cost, except to the extent any such amendment or supplement is required due to a change in
the reoffering information or other information provided by or on behalf of the successful bidder.
Continuing Disclosure
In order to assist the successful bidder in complying with Securities and Exchange Commission Rule 15c2-
12(b)(5), the County will undertake, pursuant to a continuing disclosure agreement, to provide certain information
annually and notices of the occurrence of certain events. The substantially final form of Continuing Disclosure
Agreement is included in the Preliminary Official Statement as Appendix D.
Delivery of the Bonds
Delivery of the Bonds will be made to the successful bidder through the facilities of DTC on or about June 7,
2022. Payment for the Bonds shall be made in immediately available funds.
WASHINGTON COUNTY, MARYLAND C-9
The Bonds will be accompanied by the customary closing documents, including a no litigation certificate,
effective as of the date of delivery, stating that there is no litigation pending affecting the validity of the Bonds. It shall
be a condition to the obligation of the successful bidder for the Bonds to accept delivery of and pay for the Bonds that,
simultaneously with or before delivery and payment for the Bonds, the successful bidder shall be furnished a certificate
of the President of the Board and the CFO to the effect that, to the best of their knowledge and belief, the Official
Statement (and any amendment or supplement thereto) (except for the reoffering information and except as to
information regarding DTC and DTC’s book-entry system provided by DTC, as to which no view will be expressed) as
of the Bid Date and as of the date of delivery of the Bonds does not contain any true statement of a material fact and
does not omit to state a material fact necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading and that between the Bid Date and the date of delivery of the Bonds there has
been no material adverse change in the financial position or revenues of the County, except as reflected or
contemplated in the Official Statement.
Amendment and Postponement
The County reserves the right to modify or amend this Notice of Sale prior to the Bid Date including, but not
limited to, adjusting and changing the Preliminary Amounts for the Bonds, determining not to issue the Bonds, and/or
changing the bid specifications for the Bonds; however, such modifications or amendments shall be made not later than
9:30 a.m. Eastern Time on the Bid Date and communicated through Parity or TM3.
The County reserves the right to postpone, from time to time, the date established for the receipt of bids. Any
such postponement will be communicated through Parity or TM3. If any date fixed for the receipt of bids and the sale
of the Bonds is postponed, any alternative Bid Date will be announced via Parity or TM3 at least 24 hours prior to such
alternative Bid Date. In addition, the County reserves the right, on the date established for the receipt of bids, to reject
all bids for the Bonds and to then or later establish a subsequent date on which bids for the Bonds will again be
received. If all bids for the Bonds are rejected and a subsequent date for receipt of bids established, notice of the
subsequent Bid Date will be announced via Parity or TM3 at least 24 hours prior to such subsequent Bid Date. On any
such alternative or subsequent Bid Date, any bidder may submit a bid for the purchase of the Bonds in conformity in all
respects with this official Notice of Sale except for the Bid Date and except for the changes announced by Parity or
TM3.
Any bid submitted shall be made in accordance with this Notice of Sale, including any modifications,
amendments or changes communicated via Parity or TM3 in accordance with the provisions of this Notice of Sale.
Additional Information
The Preliminary Official Statement relating to the Bonds, together with the official Notice of Sale, may be
obtained by contacting Davenport & Company, LLC., The Oxford Building, 8600 LaSalle Road, Suite 618, Towson,
Maryland 21286, or by telephone, (410) 296-9426 or by facsimile transmission, (866) 932-6660, or by email,
sostazeski@investdavenport.com, the financial advisor to the County. The Preliminary Official Statement and the
official Notice of Sale will also be made available via www.i-dealprospectus.com.
WASHINGTON COUNTY
Jeffrey A. Cline, President
Board of County Commissioners
WASHINGTON COUNTY, MARYLAND C-10
Exhibit 1 to Appendix C (Notice of Sale)
FORM OF ISSUE PRICE CERTIFICATE FOR
QUALIFIED COMPETITIVE BID
[$_______________
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
PUBLIC IMPROVEMENT BONDS OF 2022]
ISSUE PRICE CERTIFICATE (Qualified Competitive Bid)
The undersigned, on behalf of [WINNING BIDDER] (the “Purchaser”), hereby certifies as set forth below
with respect to the sale and issuance of the above-captioned obligations (the “Bonds”) to be issued by County
Commissioners of Washington County (the “Issuer”). Certain capitalized terms used in this certificate are defined in
paragraph 2 below.
1. Reasonably Expected Initial Offering Price.
(a) As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the Public by
the Purchaser are the prices listed in Schedule A hereto (the “Expected Offering Prices”). The Expected Offering
Prices are the prices for the Maturities of the Bonds used by the Purchaser in formulating its bid to purchase the
Bonds. Attached hereto as Schedule B is a true and correct copy of the bid provided by the Purchaser to purchase
the Bonds.
(b) The Purchaser was not given the opportunity to review other bids prior to submitting its bid.
(c) The bid submitted by the Purchaser constituted a firm offer to purchase the Bonds.
(d) The Purchaser has an established industry reputation for underwriting new issuances of municipal
bonds.
2. Defined Terms.
“Maturity” means Bonds with the same credit and payment terms. Bonds with different maturity dates are
treated as separate Maturities.
“Public” means any person (including an individual, trust, estate, partnership, association, company, or
corporation) other than an Underwriter or related party to an Underwriter. The term “related party” for purposes of
this certificate generally means any two or more persons who have greater than 50 percent common ownership,
directly or indirectly.
“Sale Date” means the first day on which there is a binding contract in writing for the sale of the Bonds.
The Sale Date of the Bonds is [SALE DATE TO BE INSERTED].
“Underwriter” means (i) any person that agrees pursuant to a written contract with the Issuer (or with the
lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and
(ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of
this definition to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a
party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).
WASHINGTON COUNTY, MARYLAND C-11
The undersigned understands that the foregoing information will be relied upon by the Issuer with respect
to certain of the representations set forth in the Tax Certificate and Compliance Agreement of the Issuer and with
respect to compliance with the federal income tax rules affecting the Bonds, and by Funk & Bolton, P.A., bond
counsel to the Issuer, in rendering its opinion that the interest on the Bonds is excludable from gross income for
federal income tax purposes, the preparation of Internal Revenue Service Form 8038-G, and other federal income
tax advice bond counsel may give to the Issuer from time to time relating to the Bonds.
_______________________________, as Purchaser
By:____________________________________________
Name:
Title:
(Authorized Signatory)
Dated: _______________, 2022
WASHINGTON COUNTY, MARYLAND C-12
SCHEDULE A
EXPECTED OFFERING PRICES
[To be Attached]
WASHINGTON COUNTY, MARYLAND C-13
SCHEDULE B
COPY OF PURCHASER’S BID
[To be Attached]
WASHINGTON COUNTY, MARYLAND C-14
Exhibit 2 to Appendix C (Notice of Sale)
FORM OF ISSUE PRICE CERTIFICATE FOR
NONQUALIFIED COMPETITIVE BID
[$_______________
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
PUBLIC IMPROVEMENT BONDS OF 2022]
ISSUE PRICE CERTIFICATE (Nonqualified Competitive Bid)
The undersigned, on behalf of [NAME OF THE WINNING BIDDER] (the “[SHORT FORM NAME OF
WINNING BIDDER]”), [on behalf of itself and [NAMES OF MEMBERS OF THE UNDERWRITING
SYNDICATE] (together, the “Underwriting Syndicate”)] hereby certifies as set forth below with respect to the sale
and issuance of the above-captioned obligations (the “Bonds”) to be issued by County Commissioners of
Washington County (the “Issuer”). Certain capitalized terms used in this certificate are defined in paragraph 3
below.
1. Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity of the
General Rule Maturities, the first price at which at least 10% of such Maturity was sold by [SHORT FORM NAME
OF WINNING BIDDER][the Underwriting Syndicate] to the Public is the respective price listed in Schedule A.
2. Initial Offering Price of the Hold-the-Offering-Price Maturities.
(a) The [SHORT FORM NAME OF WINNING BIDDER][Underwriting Syndicate] offered the
Hold-the-Offering-Price Maturities to the Public for purchase at the respective initial offering prices listed in
Schedule A (the “Initial Offering Prices”) on or before the Sale Date. A copy of the pricing wire or equivalent
communication for the Bonds is attached to this certificate as Schedule B.
(b) As set forth in the Notice of Sale and bid award, [the SHORT FORM NAME OF WINNING
BIDDER][the members of the Underwriting Syndicate] [has][have] agreed in writing that (i) for each Maturity of
the Hold-the-Offering-Price Maturities, [it][they] would neither offer nor sell any of the Bonds of such Maturity to
any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for
such Maturity (the “hold-the-offering-price rule”), and (ii) any selling group agreement shall contain the agreement
of each dealer that is a member of the selling group, and any retail distribution agreement shall contain the
agreement of each broker-dealer that is a party to the retail distribution agreement, to comply with the hold-the-
offering-price rule. Pursuant to such agreement, no Underwriter (as defined below) has offered or sold any Maturity
of the Hold-the-Offering-Price Maturities at a price that is higher than the Initial Offering Price for that Maturity of
the Bonds during the Holding Period.
(c) The [SHORT FORM NAME OF WINNING BIDDER has][the members of the Underwriting
Syndicate have] an established industry reputation for underwriting new issuances of municipal bonds.
3. Defined Terms.
“General Rule Maturities” means those Maturities of the Bonds listed on Schedule A hereto as the “General
Rule Maturities”.
“Hold-the-Offering-Price Maturities” means those Maturities of the Bonds listed in Schedule A hereto as
the “Hold-the-Offering-Price Maturities”.
WASHINGTON COUNTY, MARYLAND C-15
“Holding Period” means, with respect to each Hold-the-Offering-Price Maturity, the period starting on the
Sale Date and ending on the earlier of (i) the close of the fifth (5) business day after the Sale Date, or (ii) the date of
which the [SHORT FORM NAME OF WINNING BIDDER][Underwriting Syndicate] [has][have] sold at least 10%
of such Hold-the-Offering-Price Maturity to the Public at prices that are no higher than the Initial Offering Price for
such Hold-the-Offering Price Maturity.
“Maturity” means Bonds with the same credit and payment terms. Bonds with different maturity dates are
treated as separate Maturities.
“Public” means any person (including an individual, trust, estate, partnership, association, company, or
corporation) other than an Underwriter or related party to an Underwriter. The term “related party” for purposes of
this certificate generally means any two or more persons who have greater than 50 percent common ownership,
directly or indirectly.
“Sale Date” means the first day on which there is a binding contract in writing for the sale of the Bonds.
The Sale Date of the Bonds is [SALE DATE TO BE INSERTED].
“Underwriter” means (i) any person that agrees pursuant to a written contract with the Issuer (or with the
lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and
(ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of
this definition to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a
party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).
The undersigned understands that the foregoing information will be relied upon by the Issuer with respect
to certain of the representations set forth in the Tax Certificate and Compliance Agreement of the Issuer and with
respect to compliance with the federal income tax rules affecting the Bonds, and by Funk & Bolton, P.A., bond
counsel to the Issuer, in rendering its opinion that the interest on the Bonds is excludable from gross income for
federal income tax purposes, the preparation of Internal Revenue Service Form 8038-G, and other federal income
tax advice bond counsel may give to the Issuer from time to time relating to the Bonds.
[NAME OF WINNING BIDDER] [, as Representative of the
Underwriting Syndicate]
By:____________________________________________
Name:
Title:
(Authorized Signatory)
Dated: _____________, 2022
WASHINGTON COUNTY, MARYLAND C-16
SCHEDULE A
SALE PRICES OF THE GENERAL RULE MATURITIES
[To be Inserted or Attached]
INITIAL OFFERING PRICES OF THE HOLD-THE-OFFERING-PRICE MATURITIES
[To be Inserted or Attached]
WASHINGTON COUNTY, MARYLAND C-17
SCHEDULE B
PRICING WIRE OR EQUIVALENT COMMUNICATION
[To be Attached]
(This page has been left blank intentionally.)
WASHINGTON COUNTY, MARYLAND D-1
APPENDIX D
PROPOSED FORM OF
CONTINUING DISCLOSURE AGREEMENT
$________________
COUNTY COMMISSIONERS OF WASHINGTON COUNTY
PUBLIC IMPROVEMENT BONDS OF 2022
CONTINUING DISCLOSURE AGREEMENT
This Continuing Disclosure Agreement (the “Disclosure Agreement”) is executed and delivered by COUNTY
COMMISSIONERS OF WASHINGTON COUNTY (the “Issuer”) in connection with the issuance of its
$____________ Public Improvement Bonds of 2022 (the “Bonds”). The Bonds are being issued pursuant to Resolution
No. RS-2022-__ adopted on May 3, 2022. The Issuer covenants and agrees as follows:
SECTION 1. Purpose of the Disclosure Agreement. This Disclosure Agreement is being executed and
delivered by the Issuer for the benefit of the owners and beneficial owners of the Bonds and in order to assist the
Participating Underwriters in complying with Securities and Exchange Commission Rule 15c2-12(b)(5). The Issuer’s
obligations hereunder shall be limited to those required by written undertaking pursuant to the Rule.
SECTION 2. Definitions. In addition to the definitions set forth above, which apply to any capitalized
term used in this Disclosure Agreement unless otherwise defined in this Section, the following capitalized terms shall
have the following meanings:
“Listed Events” shall mean any of the events listed in Section 4(a) of this Disclosure Agreement.
“MSRB” shall mean the Municipal Securities Rulemaking Board. To the extent the Rule is amended to refer
to any additional or different repositories, references in this Disclosure Agreement to the MSRB shall be deemed
to such additional or different repositories to the extent required by the Rule. As of the date of execution and
delivery of this Disclosure Agreement, any of the notices or materials required by this Disclosure Agreement to
be filed with the MSRB shall be filed with the Electronic Municipal Market Access system maintained by the
MSRB at https://www.emma.msrb.org in accordance with the Rule.
“Official Statement” shall mean the Official Statement dated May __, 2022 relating to the Bonds.
“Participating Underwriter” shall mean any of the original underwriters of the Bonds required to comply
with the Rule in connection with offering of the Bonds.
“Rule” shall mean Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as the same may be amended from time to time.
SECTION 3. Provision of Annual Financial Information, Operating Data and Audited Information.
(a) The Issuer shall provide to the MSRB annual financial information and operating data generally
consistent with the information contained in the charts or tables under the headings “General Fund Revenues and
Expenditures”, “General Fund Balance Sheet” and “General Obligation and Revenue Bonds” in the Official Statement,
such information to be made available within 240 days after the end of the Issuer’s fiscal year, commencing with the
D-2 WASHINGTON COUNTY, MARYLAND
fiscal year ending June 30, 2022. Any of such financial information or operating data required by this subsection (a)
may be set forth in the Issuer’s audited financial statements, including in the notes to, or any supplementary or additional
information provided with, such audited financial statements. To the extent such financial information or operating data
is provided in or with the Issuer’s audited financial statements, including in the notes to, or any supplementary or additional
information provided with, such audited financial statements, such provided financial information or operating data may
not be in the same format as the applicable charts or tables set forth in the Official Statement and/or may contain details
that were not included in the charts or tables referenced above that were included in the Official Statement.
(b) The Issuer shall provide to the MSRB annual audited combined financial statements for the Issuer,
such information to be made available within 240 days after the end of the Issuer’s fiscal year, commencing with the fiscal
year ending June 30, 2022, unless the audited financial statements are not available on or before such date, in which event
said financial statements will be provided promptly when and if available. In the event that audited financial statements
are not available within 240 days after the end of the Issuer’s fiscal year (commencing with the fiscal year ending June
30, 2022), the Issuer will provide unaudited financial statements within said time period.
(c) The presentation of the financial information referred to in paragraph (a) and in paragraph (b) shall be
made in accordance with the same accounting principles as utilized in connection with the presentation of applicable
comparable financial information included in the Official Statement, provided, that the Issuer may modify the accounting
principles utilized in the presentation of financial information by amending this Disclosure Agreement pursuant to the
provisions of Section 7 hereof. Changes in Generally Accepted Accounting Principles, where applicable to financial
information to be provided by the Issuer, shall not require the Issuer to amend this Disclosure Agreement.
(d) If the Issuer is unable to provide the annual financial information and operating data within the
applicable time periods specified in (a) and (b) above, the Issuer shall send in a timely manner a notice of such failure to
the MSRB.
(e) If the Issuer changes its fiscal year, it will notify the MSRB of the change (and of the date of the
new fiscal year end) prior to the next date by which the Issuer would otherwise be required to provide financial
information and operating data pursuant to this Section 3.
(f) The financial information and operating data to be provided pursuant to this Section 3 may be set
forth in full in one or more documents or may be incorporated by specific reference to documents available to the
public on the MSRB’s Internet Website or filed with the Securities and Exchange Commission.
(g) All information provided to the MSRB pursuant to subsections (a), (b) or (d) of this Section 3 shall be
in an electronic format as prescribed by the MSRB.
SECTION 4. Reporting of Listed Events.
(a) This Section 4 shall govern the giving of notices of the occurrence of any of the following Listed
Events with respect to the Bonds:
i) principal and interest payment delinquencies;
ii) non-payment related defaults, if material;
iii) unscheduled draws on debt service reserves reflecting financial difficulties;
iv) unscheduled draws on credit enhancements reflecting financial difficulties;
v) substitution of credit or liquidity providers, or their failure to perform;
vi) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations
of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or
determinations with respect to the tax status of the Bonds, or other material events affecting the tax-
exempt status of the Bonds;
vii) modifications to rights of Bond holders, if material;
viii) Bond calls, if material, and tender offers;
ix) defeasances;
x) release, substitution, or sale of property securing repayment of the Bonds, if material;
WASHINGTON COUNTY, MARYLAND D-3
xi) rating changes;
xii) bankruptcy, insolvency, receivership or similar event of the Issuer;
xiii) the consummation of a merger, consolidation, or acquisition involving the Issuer or the sale of all or
substantially all of the assets of the Issuer, other than in the ordinary course of business, the entry into
a definitive agreement to undertake such an action or the termination of a definitive agreement relating
to any such actions, other than pursuant to its terms, if material; and
xiv) appointment of a successor or additional trustee or the change of name of a trustee, if material.
xv) incurrence of a financial obligation of the Issuer, if material, or agreement to covenants, events of
default, remedies, priority rights, or other similar terms of a financial obligation of the Issuer, any of
which affect security holders, if material; and
xvi) default, event of acceleration, termination event, modification of terms, or similar events under the
terms of a financial obligation of the Issuer, any of which reflect financial difficulties.
For the purpose of the event identified in clause (xii) of this Section 4(a), the event is considered to occur
when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the Issuer in a
proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or
governmental authority has assumed jurisdiction over substantially all of the assets or business of the Issuer, or if such
jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject
to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of
reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction
over substantially all of the assets or business of the Issuer.
For purposes of the events identified in clauses (xv) and (xvi) of this Section 4(a), the term “financial
obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as
security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term
“financial obligation” shall not include municipal securities as to which a final official statement has been provided
to the MSRB consistent with the Rule.
(b) Notice of any of the Listed Events identified in Section 4(a) shall be given to the MSRB in a timely
manner not in excess of ten (10) business days after the occurrence of the event.
(c) All information provided to the MSRB pursuant to this Section 4 shall be in an electronic format as
prescribed by the MSRB.
SECTION 5. Termination of Reporting Obligations. The Issuer’s obligations under this Disclosure
Agreement shall terminate upon the payment in full of all of the Bonds either at their maturity or by early redemption.
In addition, the Issuer may terminate its obligations under this Disclosure Agreement if and when the Issuer no longer
remains an obligated person with respect to the Bonds within the meaning of the Rule.
SECTION 6. Dissemination Agent. The Issuer may, from time to time, appoint or engage a Dissemination
Agent to assist it in carrying out its obligations under this Disclosure Agreement, and may discharge any such
Dissemination Agent, with or without appointing a successor Dissemination Agent.
SECTION 7. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the
Issuer may amend this Disclosure Agreement, and any provision of this Disclosure Agreement may be waived, if such
amendment or waiver is supported by an opinion of counsel, expert in federal securities laws, to the effect that such
amendment or waiver would not, in and of itself, cause the undertakings herein to violate the Rule if such amendment or
waiver had been effective on the date hereof but taking into account any subsequent change in or official interpretation of
the Rule. To the extent applicable, the reasons for any amendment and the impact of the change in the type of operating
data or financial information being provided will be explained in information provided with the annual financial
information containing the amended operating data or financial information.
SECTION 8. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent
the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure
Agreement or any other means of communication, or including any other information in any disclosure made pursuant
to Section 3(a) or (b) hereof or notice of occurrence of a Listed Event in addition to that which is required by this
D-4 WASHINGTON COUNTY, MARYLAND
Disclosure Agreement. If the Issuer chooses to include any information in any disclosure made pursuant to Section
3(a) or (b) hereof or notice of occurrence of a Listed Event in addition to that which is specifically required by this
Disclosure Agreement, the Issuer shall have no obligation under this Disclosure Agreement to update such information
or include it in any future disclosure made pursuant to Section 3(a) or (b) hereof or notice of occurrence of a Listed
Event.
SECTION 9. Limitation of Remedies. The Issuer shall be given written notice at the address set forth below
of any claimed failure by the Issuer to perform its obligations under this Disclosure Agreement, and the Issuer shall be
given 15 days to remedy any such claimed failure. Any suit or other proceeding seeking further redress with regard to any
such claimed failure by the Issuer shall be limited to specific performance as the adequate and exclusive remedy available
in connection with such action. Written notice to the Issuer shall be given to the Chief Financial Officer, Washington
County Administration Building, Room 3100, 100 W. Washington Street, Hagerstown, MD 21740, or at such alternate
address as shall be specified by the Issuer with disclosures made pursuant to Section 3(a) or (b) hereof or a notice of
occurrence of a Listed Event.
SECTION 10. Relationship to Bonds. This Disclosure Agreement constitutes an undertaking by the Issuer
that is independent of the Issuer’s obligations with respect to the Bonds; any breach or default by the Issuer under this
Disclosure Agreement shall not constitute or give rise to a breach or default under the Bonds.
SECTION 11. Law of Maryland. This Disclosure Agreement, and any claim made with respect to the
performance by the Issuer of its obligations hereunder, shall be governed by, subject to, and construed according to the
laws of the State of Maryland.
SECTION 12. Limitation of Forum. Any suit or other proceeding seeking redress with regard to any claimed
failure by the Issuer to perform its obligations under this Disclosure Agreement must be filed in the Circuit Court for
Washington County, Maryland.
SECTION 13. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the owners,
including beneficial owners, from time to time of the Bonds, and shall create no rights in any other person or entity.
SECTION 14. Compliance with MSRB Requirements. All documents provided to the MSRB pursuant to
this Disclosure Agreement and the Rule shall be accompanied by identifying information as prescribed by the MSRB.
Date: ____________________, 2022
(SEAL)
ATTEST: COUNTY COMMISSIONERS OF
WASHINGTON COUNTY
______________________________ By:_______________________________________
Krista L. Hart, County Clerk Jeffrey A. Cline, President
Board of County Commissioners
of Washington County