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DENTON – As the Caroline County Commissioners prepared to adopt the fiscal year 2026 budget, Deputy County Administrator Daniel Fox announced the county received a bond rating upgrade.
According to a June 3 press release from S&P Global Ratings, the firm “raised its rating on Caroline County Md.’s general obligation (GO) debt to 'AA' from 'AA-.’”
“We assessed the county's environmental, social, and governance factors relative to its economy, budgetary outcomes, management, and debt and long-term liability profile, and view them as neutral within our credit assessment,” the release stated. “In addition, we believe management takes appropriate measures to guard against cyber breaches.”
“The stable outlook reflects our view of the rural, yet stable, local economy that supports the county’s property and income tax revenues and strong financial history,” according to the release. “We believe Caroline County's stable property tax base, robust reserves, and low debt provide rating stability. Therefore, we do not expect to change the rating within the two-year outlook period.”
Fox and Grant Coordinator Stacy Seward worked with S&P Global Ratings several months. “(It’s a) great thing for the county, and something that we're both very proud of to be part of. And it should mean a lot going forward,” Fox said.
“In an environment where a lot of government agencies are seeing reduced credit ratings, we've managed to see an increase here,” Commission President Travis Breeding said, “I think it's a testament to staff's tight budgeting and managing every dollar to make sure that it is used appropriately.”
Breeding also credited the current board of Commissioners “and previous boards for financial prudence and being very respectful with tax dollars. And it goes to the citizenry as well who have seen massive increases in property assessments, and income and wage growth that has, I'm sure, shown these credit agencies that Caroline County does have the ability to raise revenue.”
Breeding thanked Fox, Seward and the Finance Office staff. “I think it's a very important, very good step for the county, and it should give the citizens a lot of faith in their government,” he said.
The Commissioners voted to adopt Resolution 2025-015, the FY 2026 Caroline County Government fee schedule, and Resolution 2025-016, the FY 2026 operating and capital budgets.
Fox thanked the Commissioners, as well as staff members and others. “It's five or six months of back and forth, and it's not possible without having the department heads or outside agencies being responsive and able to get us the information,” he said.
Fox said “probably 99% of the fees … have remained the same as the prior year.”
For FY 2026, “the operating budget is looking to finish at about $79,208,471, and then as far as Capital, you're looking at $22,443,227. (I’m) happy to say this year's operating budget includes holding all taxes …at the same amount as the prior year.”
I think we were going on either the ninth or 10th year in a row now with a 98-cent property tax rate, which to me is amazing to think we've been able to hold that for so many years consistently now,” Fox said.
Changes in the operating budget include a new 25-step pay plan “that County Administrator (Katheleen) Freeman and myself, as well as HR and the department heads have really worked on and petitioned for this year,” Fox said. “So, again, a lot of great things that I think are coming out of this budget. It’s been a tough year that had a lot of unknowns and ups and downs.”
Commissioner Frank Bartz said he considered the pay plan “a positive morale booster for employees.”
“We’re (moving) in the right direction,” Bartz said. “I think over the years we’ve made strides to show employees that we care. I think we've done a good job of that. … and the bond rating – that's phenomenal.”
“Thank you for all the work you’ve done,” Vice President Larry Porter said. “It's incredible the amount of time and the numbers that are crunched to get here” as well as difficult policy decisions to raise revenue, including the decision to host the Mid-Shore Regional Landfill, he added.
“I just think it's a real feather in your cap to come up with this and to be able to maintain this property tax rate,” Porter said. “People don't want their taxes raised, and I understand that, but as services and mandates continue and oftentimes policies that are, I think, ridiculous and inept at the state legislative level, all that does is make it more difficult here.”
