CAROLINE COUNTY, Md. -- Federalsburg is several million dollars in the hole. However, money troubles are just the tip of the iceberg.
On Wednesday, the town announced the resignation of its police chief, Joseph Gasser. The roads are in rough shape. Plus, neighbors tell us the water they pay for is not even safe to drink, and they're growing frustrated with a town that seems to be crumbling before their very eyes.
Still, the town's financial situation, for Tina Fithian, cuts the deepest.
"It's frustrating, especially because the water bill and things that we pay, that should go to those systems, itisn't necessarily being handled properly," said Fithian.
The last comprehensive financial report includes data from 2017 through 2021. In three of those years(2017, 2018, and 2021), Federalsburg spent more than it budgeted for.
According to Councilmember Brandy James, as of June 30th, 2024, the town's debt was $5,950,322.70. James said that debt can be attributed to outstanding loans taken out over many years.
Town Treasurer Jamie Washington did not respond to our request for an updated amount. However, at a council meeting on Monday, July 7th, she did provide an update on the amount left in the town's general fund.
According to Washington, there is $21,991.64 left.
"It says to me that the town is on its way out," said Donald Nagel, who served as Federalsburg's chief of police for nearly 25 years.
Nagel said his biggest concern, even with the debt, is the future of the town's law enforcement.
"We got our streets in terrible shape, we're going to lose the police department, [we] got problems with the water and sewer plant and we got no money, it scares me," said Nagel.
Town leaders have not yet released an official statement addressing the police department's future. Still, at Monday's meeting, officials said they are not currently looking to hire a new chief due to financial constraints.
On Monday, officials made a change that could bring in more money. Church's and the Federalsburg Volunteer Fire Company must start paying water bills. However, James said the move was madein accordance with Maryland law, not because of the budget crisis.
"If it's already set in the government, the Maryland government, that they should be paying then they should be paying," said Fithian. "It's kind of untimely."
Officials have also indicated that they would like to get to the bottom of how the debt began.
On Federalsburg's official website, the town issued a notice under the finance department link, citing a need for a forensic audit of its financial records over the past five years.
The Office of the Mayor and Council provided the following background:
"The Town of Federalsburg, MD has undergone various financial transactions over the past five years, including budget allocations, expenditures, grants, and annual audits. Recent concerns regarding financial discrepancies and accounting have prompted the need for a comprehensive forensic audit to investigate and validate these records."
Officials have also announced an upcoming public forum, scheduled for 6:00 p.m. on Monday, July 21st.