County reserve fund gives officials flexibility, as other operating costs increase

By Brian Shane

Staff Writer

(April 30, 2026) Ocean Pines sewer customers will see one part of their quarterly bill cut in half, as Worcester County moves to pay down some long-term debt.

The county plans to reduce the sewer district’s debt service fee from $36 to $18 per quarter, a change that would affect roughly 10,000 users in Ocean Pines.

Officials say the savings are the result of a growing reserve fund, built up over the past few years through a combination of debt payoff and higher investment returns.

By using that money to retire older obligations early, the county can reduce the amount it needs to collect from ratepayers.

“The reality is that we’re faced with higher costs from a regulatory standpoint, inspection standpoint, chemicals, maintenance,” said Commissioner Chip Bertino (District 5, Ocean Pines). “So, it’s nice to get a win for the ratepayers on this one.”

For commercial businesses in Ocean Pines with more than one EDU, they will also see a savings of $18 per EDU, Bertino added.

The county realized about $972,000 in savings and interest after retiring a 2019 bond, according to an April 15 internal memo.

At the same time, the county benefited from rising interest rates through the Maryland Local Government Investment Pool, where it holds public funds.

Account returns there climbed from 1.5% in 2022 to 3.7%, generating an additional $784,000 in interest income.

The combined surplus totals about $1.76 million. The county will use $1.46 million of that to pay off two remaining bonds from 2014 and 2015.

“We’re trying to find ways of lowering the bill,” said County Administrator Weston Young. “That’s where it makes sense to pay off the debt so that there isn’t the quarterly charge” tied to older obligations.

The rate cut comes as county officials are also dealing with a separate billing issue that could result in additional savings for some customers.

The commissioners recently learned that a flaw in the county’s water and sewer billing system may have pushed some users into higher rate tiers sooner than intended, potentially leading to overcharges.

County staff are now working to identify affected accounts and determine how bills would have differed under a corrected system. Officials are expected to return with options for issuing credits or refunds, though no timeline has been set.

The proposed changes are part of the county’s fiscal year 2027 budget. It includes a 5% increase in base rates for 10 of the county’s 11 water and sewer service areas, along with more than $1.1 million in general fund subsidies to support districts that continue to operate at a deficit.

If the commissioners approve credits for some water-sewer accounts, “that will mean significant savings for businesses, not just in Ocean Pines, but other services areas,” Bertino said.