WORCESTER COUNTY, Md. -- The county's water and wastewater funds are in bad shape. Some neighbors are now worried they could pay what they call an unfair amount to help undo a county-wide deficit.
In September of last year, Worcester County Commissioners were made aware of a serious problem. The county's water and wastewater enterprise funds, made up of 11 different service areas, required emergency funding.
It's because there was a $9,061,187 shortfall.
So in January, county leaders transferred $9,061,187 from the General Fund, that way the enterprise funds remained financially stable. That money, however, at least most of it, now needs to be paid back.
Grant Transfer:
- $2,760,177 to Riddle Farm(grant)
*The grant does NOT need to be paid back.
Loan Transfers:
- $242,000 to Edgewater Acres
- $790,000 to the Landings
- $1,730,000 to Mystic Harbor
- $200,000 to Newark
- $3,339,010 to Riddle Farm
Total: $6,301,010
*These loans DO need to be paid back. Repayment is set to begin in FY27.
Then on March 18th, commissioners were told that for FY26, another $2,188,530 combined deficit is expected in the 11 service areas.
So, how did all of this happen?
"We had a finance department that was not following county procedures," said Commissioner Chip Bertino. "We were transferring funds on paper from one account to another where funds did not exist."
The county is now focused on paying off the $2,188,530 for this year, and county leaders are looking at taxpayers to help out, equally.
Commissioners Ted Elder, Eric Fiori, Joe Mitrecic and Diana Purnell proposed an across-the-board increase of $32 per-quarter in county water bills for this year.
"We need solutions that take care of the whole county, that's the way it is," said Elder.
However, Bertino said this proposed plan doesn't make sense, because Ocean Pines and other jurisdictions didn't contribute to the deficit nearly as much as other service area.
Deficit Breakdown: (Dollar Amount/Percentage)
- Assateague Point: $272,636 / 12%
- Briddletown: $25,193 / 1%
- Edgewater Acres: $53,295 / 2%
- The Landings: $387,446 / 18%
- Lighthouse Sound: $1,167 / 0%
- Mystic Harbor: $471,907 / 22%
- Newark: $63,816 / 3%
- Ocean Pines: $116,699 / 5%
- Riddle Farm: $1,018,446 / 47%
- River Run: $84,167 / -4%
- West Ocean City: $135,574 / -6%
Total: $2,188,530
*Numbers provided by Commissioner Bertino.
Elaine Brady lives in Ocean Pines and said the math here just doesn't add up.
"It's not fair to our community and we're going to fight it as much as we possibly can," said Brady.
Brady acknowledged the issue at hand and said she feels for the people who live in the communities that contributed the most to the overall debt. Still, she doesn't believe herself and others in Ocean Pines should help front the entire bill.
"To me it's like all of the sudden asking somebody, well, can you make their car payments this month," said Brady.
Bertino said the proposal is worrisome when thinking about the taxpayers financial future.
"One can only project that the same thing will happen next year and that Ocean Pines ratepayers and other ratepayers in jurisdictions that had nothing to do with this debt will be required to pay for it as well," said Bertino.
Meanwhile, Elder noted his jurisdiction, Newark, contributed just 3% to the debt, but he still believes the current proposal is the best way forward.
"If we can start trying to edge everything toward being fair and equitable that's what we're looking for," said Elder.
A public hearing for Worcester County's budget is scheduled for May 6th. That is the next opportunity for neighbors to voice their water-bill concerns before any final decisions are made.