FY 23 Approved Budget Book

COUNTY BUDGET POLICIES AND PROCESS

• Property Tax Revenues - Properties in Maryland are assessed by the State on a triennial system to establish the value of a property for taxing purposes. Each $100 of this value, multiplied by a County’s tax rate, determines the amount of taxes due. In addition, the Harford County Code requires the County Council to levy an additional tax, or “differential” on property outside the city and incorporated towns. The Property Tax Differential for Corporate and Personal Property is $0.3415 per $100 of assessed value for properties outside the towns. The Property Tax Differential for Real Property is $0.1366 per $100 of assessed value for properties outside the towns. • State Highways Users Tax - The State of Maryland designates motor vehicle tax, motor vehicle registration fees, a share of the motor vehicle titling tax and a share of the corporate income tax as Highways Users Revenues. The distribution to the subdivisions is determined by a formula based on locally maintained road mileage and vehicle registrations. • Charges for Service - These revenues include charges to developers for inspections, technical review of design and construction drawings of proposed utility installations, review of all proposed County road access, signs and line striping. • Intra-County Revenues - This category covers reimbursements from County departments for costs incurred from First Vehicle Services for work on the County’s fleet, as well as for fuel from County pumps for County-owned vehicles. Water and Sewer Operating Fund - The Water and Sewer Operating Fund was established to account for services provided by the Harford County Government owned Water and Sewer systems. The County is authorized to make various service charges for water, sewer, drainage service, usage, late fees and unpaid bills. These charges secure revenue to maintain, repair and operate its water supply, sewerage or drainage systems, depreciation allowances, bond interest, etc. Below is a brief description of these revenues. • User Charges - A base water and sewer charge is imposed on customers to recoup a portion of water and sewer operating fixed costs. A charge is also placed on all customers when the County’s system purchases water from other sources; as well as for sewer customers when the County secures services from other systems. Septic users and haulers are also charged a fee, and developers must pay for some pump station operations. • Service Charges - These include tests and inspections; miscellaneous services (design review, hydrant charges, etc.); job/shop repair orders; meter installations; and Miss Utility (a charge to contractors and developers for the location of water and sewer lines). • Other Charges - include Industrial Waste Permits and Interest and Penalty charges. • General Government Charges - include bad check fees; publications; reproductions; tax lien certificates; sales of plans and specs; depreciation • Unrestricted net assets (surplus funds from prior years); interest income and miscellaneous revenue. Water and Sewer Debt Service Fund - The Water and Sewer Debt Service fund provides appropriation authority for the payment of principal and interest on long-term water and sewer bonds and loans. All County debt incurred to finance water, sewer, and

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