Worcester County commissioners approved a set of water and wastewater budget adjustments and capital funding requests on April 1, but a divided and at times heated debate over enterprise fund management and whether to commission an outside audit ended with commissioners rejecting an immediate audit request.

Public works staff asked commissioners to approve multiple overexpenditure requests across service areas, citing unanticipated costs and seasonal flow increases. The requests included additional funds for PFAS lab testing at Assateague Point and Landing service areas (about $2,000 each), a $200,000 increase for supplies, equipment and chemicals at the Mystic Harbor wastewater plant because of higher flows, $5,000 for PFAS testing at Mystic Harbor, $50,000 for maintenance at Mystic Harbor wastewater plant, and various repairs and paving for Ocean Pines including a $30,000 paving request and a $125,000 line-item for additional outside-contractor water repairs. Public works staff said much of the need stems from higher-than-budgeted flows and unanticipated maintenance such as pump rebuilds, screen gearbox repairs, and repairs to the UV disinfection system.

Commissioners approved the overexpenditure requests by motion. During discussion, commissioners asked how the additional amounts would be paid; staff and the enterprise fund controller reported that reserve funds exist for each district (public works cited reserve balances including $274,000 for Assateague Point, $425,000 for Landings, $1.9 million for Mystic Harbor and $2.4 million for Ocean Pines) and said the requests would be paid from reserves.

Separately, public works requested an intergovernmental loan to purchase automation equipment for the Riddle Farm water treatment plant totaling about $73,700; staff said the original equipment dated to 2001. Commissioners approved the loan and staff said the Bridal Farm service area would repay the loan, with repayment expected to begin in fiscal 2026 unless otherwise adjusted.

The budget votes followed a broader, more contentious discussion about enterprise fund management. Commissioners referenced a prior transfer of $9.1 million to cover a shortfall and additional amounts discussed in the meeting, and several commissioners pressed for a formal, external audit of the finance department to determine whether county financial procedures had been followed. Commissioner Bertino moved for an external audit with a requested 60–90 day turnaround and asked administration to bring a proposal; Commissioner Bunting seconded the motion and commissioners debated the scope and timing. Supporters said an agreed-upon procedures audit would test internal controls and rebuild public trust. Opponents, including commissioners who noted the county already undergoes an annual comprehensive audit, said bringing auditors into a department in the middle of budget work could disrupt critical work (tax-billing and year-end processes) and hurt staff morale.

The motion for an external audit was put to a roll call and failed; commissioners recorded the result as 2 in favor and 5 opposed (with Commissioner Bunting absent). County staff and the current audit firm discussed options to include more internal-control testing in future audit work and noted the usual annual audit timeline begins with preliminary work in June–July and fieldwork August–September with final financial statements targeted thereafter.

Commissioners also voted on a related personnel/finance procedural item earlier in the meeting: a vote on a nonrecurring agreement (consent agenda item 12) was approved with one abstention and one opposed vote recorded; staff said signing the nonrecurring agreement to apply to MSDE did not commit the county to provide funding and that final decisions would occur at the budget meeting.

Commissioners asked staff to provide further information about reserve balances and the proposed repayment timelines for loans and recommended that staff continue work on rate and budget proposals ahead of scheduled public hearings.