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FEDERALSBURG - The Town of Federalsburg claims “faith in the future” in its tagline, and that was the prevalent theme of the Mayor and Council’s message to an audience of about 200 citizens at the Federalsburg public forum on July 21 at Federalsburg Elementary School.
Financial accountability and public safety dominated the residents’ concerns, which are concerns shared by the town’s elected officials.
Following an introduction from Mayor Kim Abner, in which she set the tone by highlighting the goal of the Town staff and elected officials to be actively transparent and accountable, each of the four council members took turns sharing updates on some of the key items and issues that are plaguing the town; principally staffing, finances, and public safety. Abner encouraged residents to engage and to offer ideas to fix the issues in the town beyond the night’s public forum. “If you have a problem, we ask that you also come to us with a solution,” Abner said. The Mayor and Council are considering holding public forums every quarter.
$5.4 million debt load and need for financial/budget management
Councilwoman Brandy James spoke to previous reports on allegations that a former staff member had misappropriated town funds. She explained that the matter is with the Office of the State’s Prosecutor, and the Mayor and Council are under legal advisement not to discuss the matter further.
James acknowledged that the town’s financial management has not been transparent for years, and she vowed to change the culture to one of transparency and accountability. She foresees increased oversight of budget and procurement processes by elected officials, as well as greater accountability of elected officials by voters. The first step was to hire staff with the skills and education necessary to properly manage public funds. Oversight of staff activities will start with clear expectations of performance and communication of consequences if performance metrics are not met.
The town is carrying over $5.4 million in debt as a result of loans and grant clawbacks, in some instances based on financial management decisions dating back decades. According to town officials, financial management weaknesses include not paying bills on time, “robbing Peter to pay Paul,” and applying for grants for which the town was not eligible, resulting in the funds being clawed back. The town is working on the required audits of FY2023 and FY2024, in addition to a forensic audit in response to the allegations against prior staff.
James described the past budgets as “knotted balls of yarn” - they were not prepared properly and did not follow line-item expenditures. The Mayor and Council have already put into place responsible budget planning and approval processes, one step toward a financial plan that also calls for paying more on principal on debt service and avoiding new and unnecessary debt. Financial reports will be made each month.
The future of the Federalsburg Police Department
The Mayor and Council are considering options for police coverage in the town. On June 25, 2025, Federalsburg Police Chief Joseph Gasser resigned, the second chief to resign in six months. The town has entered into a short-term agreement with the Caroline County Sheriff's Department to provide dedicated operational management for 60 days while the town considers the next steps. One of the options is to enter into a longer-term agreement with the Sheriff’s Department in which deputies would be assigned to the Town, working out of the police department, providing 24-hour coverage. Operations would be managed by Sheriff Donald Baker, personnel matters supervision would be handled by the Mayor and Council, and funding would flow through the Caroline County Commissioners. The Town of Ridgely has operated under a similar agreement since 2024. According to Councilperson Ian Ferguson, the town could realize savings of $300,000 to $350,000 a year through this option.
The other option would be to continue to operate a town-funded police department, with full responsibility for operations, budget, and personnel oversight.
The Mayor and Council anticipate making a decision by the end of the temporary 60-day agreement with the Sheriff’s Department.
Welcoming opportunity to engage
During the nearly 90 minutes of public comment, town residents, business owners, and landlords expressed concern and frustration with the lack of transparency on the spending of tax dollars. The dozen of commenters, some of whom spoke multiple times, made statements that reflected the information that the Mayor and Council shared earlier in the night.
Concerns about proper and accountable use of tax dollars, fairness in service billing, and public safety highlighted most comments. Abner and James engaged in conversations with the commenters, and the tone and tenor of these conversations were respectful and productive.
The Mayor and Council encouraged further public engagement apart from the public forums. James asked for the public to attend the town meetings and to volunteer for commissions to take on the work of the town.
The plan is to replace one of the Mayor and Council's monthly workshops with a similar public forum once a quarter. Information on upcoming meetings and forums will be posted on the town’s Facebook page.
