ADAMS COUNTY, PENNSYLVANIA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2025

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The COUNTY OF ADAMS, hereafter referred to as the “County,” is pleased to present its financial statements developed in compliance with Statement of Governmental Accounting Standard No. 34, entitled “Basic Financial Statements – Management’s Discussion and Analysis – For State and Local Governments (hereafter “GASB 34”), and related standards. GASB 34 enhances information provided to the users of its financial statements. This section of the financial reporting package presents our discussion and analysis of the County’s financial performance during the year ending December 31, 2025. Please read it in conjunction with the County’s financial statements that follow this section.

Financial Highlights:

• Adams County's property tax rate increased 0.70 mills to 5.1393 mills.
• The County's general fund balance was $50.6 million with an unassigned portion of $44.8 million or 79% of the total general fund expenditures.
• The County’s governmental activities net position (assets, plus deferred outflows of resources less liabilities, less deferred inflows of resources) increased by $2.6 million in 2025.

The County had $56,380,000 of governmental activities general obligation debt outstanding as of December 31, 2025. The County's debt decreased due to the payment of the scheduled principal payments.

The County maintained its Moody's bond rating of Aa2.

OVERVIEW OF THE FINANCIAL STATEMENTS

This report consists of the following four parts:

• Management's discussion and analysis (this section)
• Basic financial statements (including notes)
• Required supplementary information

Other supplementary information

Management’s discussion and analysis is a guide to reading the financial statements and provides related information to help the reader to better understand the County’s government. The basic financial statements include notes that provide additional information essential to a full understanding of the financial data provided in the government-wide and fund financial statements. Required supplementary information provides the County’s budget to actual figures for the general fund and other budgeted major governmental funds, as well as information for the County’s pension and other postemployment benefit plans.

The basic financial statements present two different views of the County.

Government-wide financial statements, the first two statements, provide information about the County's overall financial status as well as the financial status of the County's component units.

Fund financial statements, the remaining statements, focus on individual parts of the County's government. They provide more detail on operations than the government-wide statements. There are three types of fund financial statements: