FY 23 Approved Budget Book

COUNTY BUDGET POLICIES AND PROCESS

Two additional funds were established by Harford County on July 1, 2001 in response to the Governmental Accounting Standards Board (GASB) Statement No. 34, which requires certain accounts the County previously treated as Trust & Agency funds be included in the operating budget as Special Revenue Funds. These funds are the State Agricultural Preservation Fund and the County Agricultural Preservation Fund, a brief description follows below. The State Agricultural Preservation Fund - is used to purchase easement rights on agricultural land. Revenue for this fund is derived from a State Agricultural Land Transfer Tax and County matching funds. The County Agricultural Preservation Fund - is used to purchase easement rights on agricultural land. Revenue for this fund is derived from Harford County’s Transfer Tax, Investment Income, and the proceeds from installment loan funds in the County’s Agricultural Land Preservation Program. The Parks and Recreation Special Revenue Fund was also established by Harford County in response to the Governmental Accounting Standards Board (GASB) Statement No. 34, which requires certain self-sustaining accounts to be included in a local government’s operating budget beginning July 1, 2001. This fund generates revenues from fees and rents charged by the Department of Parks and Recreation for activities of a self-sustaining nature.

Enterprise Funds

Enterprise funds include the Water and Sewer Fund and Water and Sewer Debt Service Fund.

The Water and Sewer Fund - requires a “separate budget for each utility shall be included in the current expense and capital budget”.

The fund provides for the operations of the County’s water and sewer systems. The systems are financed primarily through charges to customers for services provided. The Water and Sewer Debt Service Fund - includes the payment of principal and interest on long-term water and sewer bonds and loans. The debt provides funding for Water and Sewer capital projects. User fees and surtaxes generate the revenue for this fund.

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