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Administration and Finance

Finance Department
The Finance Department establishes and implements the financial policies and procedures of the Town, investment funds, and handles the deposits and payments of the Town revenues and expenditures. This department also handles various personnel matters, employee benefits, residents questions and concerns on a daily basis. The Town of Federalsburg Finance Department is located at 118 North Main Street, Federalsburg, Maryland.

Financial Statements
The Town operates on a July 1 to June 30 fiscal year. On the fiscal year's close, staff compiles all the past years financial reports, documents, and transactions in preparation for the annual audit of financial affairs.  The audit is conducted by independent, third party accounting and finance professionals. Several months after the close of the fiscal year the auditors present their findings and the audit report to the mayor and town council as part of a public meeting. Past years' audit reports are available here:
Audit report for fiscal year ended June 30, 2022
Audit report for fiscal year ended June 30, 2021
Audit report for fiscal year ended June 30, 2020
Audit report for fiscal year ended June 30, 2019
Audit report for fiscal year ended June 30, 2018  

Comprehensive Financial Review Report
This report was prepared by the financial consulting firm of Davenport & Company and funded through ARPA funds. The report, prepared in November and December 2022 and presented to the mayor and town council on January 17, 2023, reviews the town's operational funds, debt obligations, tax base, and makes recommendations. You can read the report here:
Town Comprehensive Financial Review Report 
Town Comprehensive Financial Review Executive Summary 

American Rescue Plan Act (ARPA)

On July 30, 2021 the Town received notification of the allocation of $1,310,887 from the American Rescue Plan Act\Coronavirus State and Local Fiscal Recovery Funds (ARPA).  ARPA is a federal law approved by Congress and signed by President Biden in March 2021.  Federal funds were distributed to the states and a funding formula determined the amount each state and local government would receive. The allocation received in 2021 constitutes one-half of the funds the town will receive.  Another allocation in the same amount will be distributed in July 2022.  All funds must be spent or obligated by December 31, 2024.

Over the past few months, the federal Department of the Treasury developed guidance for use of the funds as allowed by the ARPA legislation.  Town staff has participated in webinars and trainings on the use and documentation of these funds and has kept the Mayor and Town Council informed during the process.  The law allows for certain expenditures, which can be broadly applied within the allowed for uses.  The majority of the federal funding, which does not require local matching funds, will be spent on upgrades and improvements to Federalsburg’s water and sewer systems.  That includes upgrades to change out old water meters and replace them with modern meters which will make staff more efficient in reading the meters, reduce maintenance costs, and not require replacement for twelve to fifteen years.  Other expenditures will include information technology upgrades to allow residents and businesses to conduct business with the town in a remote and contactless way for the continuance of public health and ease of resident access, replacing some town revenue lost during the pandemic, and donation to the fire company for enhanced public safety.  Such expenditures will benefit every resident, and every part of town.  The ARPA interim final rule did not allow for use of funds to fix streets or sidewalks.  The interim rule expired on March 31, 2022. There is more flexibility in the final rule which can allow for street improvements. We are all aware of the condition of some of the neighborhood roads around town, and town staff continues to look for street project funding and works with state and federal partners to achieve that.

The town is committed to full transparency and accountability in spending these funds for the public good of all town residents and businesses.  All allocations will be presented to the mayor and town council for review and approval at a public meeting prior to being spent.  All funds will be accounted for in the annual financial audit, which is a document available to the general public.
Interim Final Rule June 2021 - March 31, 2022 
Interim Final Rule FAQs updated January 2022
Final Rule Compliance Statement 
Final Rule Document April 1 2022 -December 31 2024 
Final Rule Overview January 6 2022 
SLFRF Compliance Report April 30 2022  

Water and Sewer Bills
Water and sewer bills are mailed out during the first week of the following months: January, April, July and October.  If you have not received you water bill by the 15th of the month in which it is mailed out, please contact the Town Office and we will mail you a copy of your bill.

All water and sewer bills are due forty-five (45) days after the date of issuance and there is a fifteen day grace period after that date.  The due date is printed on the bottom right corner of your water bill.  If your service is turned off, you will be required to pay the balance due in full and an additional $50.00 turn-on fee before service will be restored.

Water and sewer bills include both customer usage and the corresponding debt service payments on outstanding capital improvement projects. This graphic shows the breakdown of all charges and rates of your utility bill. A substantial portion goes to pay down the town's project debt. 

Screenshot (74)

Billing Schedule

Months of Service Billing Date Due Date Cut Off Notices On or After Shut Off DateOn or After
6/15 – 9/15 October November 15 Dec. Dec.
9/16 – 12/15 January February 15 March March
12/16 – 3/15 April May 15 June June
3/16 – 6/14 July August 15 Sept. Sept.
Bay Restoration Fee
From the Office of Comptroller Peter Franchot – In the 2004 legislative session, the Maryland State Government took a major step to protect our waterways through the enactment of the Bay Restoration Fund (Senate Bill – 320).  The purpose of the bill was to create a dedicated fund to improve the environment and water quality of the Chesapeake Bay.  Through an environmental surcharge fee, this fund is used to upgrade wastewater treatment plants.  The Town of Federalsburg has initiated a BRF hardship exemption policy. 

Hours of Operation:
Monday through Friday—8:30 a.m. to 4:30 p.m.
Payment Drop Box is located at the right of the 102 Morris Avenue Entrance.
Staff can be reached by calling 410-754-8173.