FY 23 Approved Budget Book

COUNTY BUDGET POLICIES AND PROCESS

Harford County Budget Policies Harford County Charter, Article V, Budget and Finance, Section 503 establishes the “Comprehensive Scope of Budget”. The section states that “The County budget shall consist of the current expense budget, the capital budget and the capital program, and the budget message. It shall represent a complete financial plan for the County reflecting all receipts and disbursements from all sources, including all revenues, all expenditures, and the surplus or deficit in the general fund and all special funds of the County government”.

Fund Structure

The current expense budget is the County’s Annual Operating Budget; it is a work plan for each fiscal year. Harford County has established various “Funds” to record the receipt and application of resources used to conduct government operations. These funds are appropriated, spent and recorded separately based on legal requirements, their source, or the nature of the program they provide for.

Operating Funds

The Operating Funds include the General Fund, Highways Fund, Watershed Management Fund and the Tax Increment Financing Fund. Below is a brief description of these funds. The General Fund - is the principal operating fund for Harford County Government and encompasses all financial resources and activities not required by law or County policy to be maintained in another specific fund. Charter section 523(b) also states that “no general fund revenue or receipt shall be dedicated to, expended for, or used to supplement appropriations from a special fund except as a loan to a special fund”. The Highways Fund - covers dedicated revenues derived from specific taxes, or earmarked by their source, to be used for the maintenance, care, and repair of roads and bridges located outside the boundaries of the three incorporated municipalities in Harford County; traffic safety; County-related transportation expenses; and the County’s fleet maintenance. The Watershed Management Fund - Harford County is required to adopt and implement local laws necessary to establish a watershed protection and restoration program. Resolution 05-15 dedicated a portion of the revenue from the Recordation Tax for local watershed protection and restoration projects. The Tax Increment Financing Fund - was authorized by Bill No. 10-10 and Bill No. 12-35. These Bills established both development districts and special taxing districts. The Bills also pledge the real property taxes collected with respect to the tax increment of properties in the districts to payment of the bonds to be issued and also authorizes the imposition of a special tax on properties within the districts to the extent the tax increment received is insufficient to pay debt service on the bonds and other allowable costs and expenses.

58