FY 23 Approved Budget Book

COUNTY BUDGET POLICIES AND PROCESS

wastewater facilities must be paid no later than 40 years after the date of issuance. Revenues for the Water and Sewer Debt Service Fund are derived primarily from the sources listed below. • System Capital Charges - These include connection charges, surcharges and development charges. • Assessments - Included in assessments are Benefit Assessments and User Benefit Assessments. • Biological Nutrient Removal Fee/Enhanced Nutrient Removal Fee - were added to cover the debt payment that the County incurred on capital construction costs to install the nutrient removal process at the Sod Run Wastewater Treatment Plant. • Sanitation Permit - Fees derived from permits to install septic systems (this revenue is divided between the Water & Sewer Debt Service Fund and the General Fund - Health Department account). • Capital Surcharges - This account is issued to record surcharges for a limited number of specific projects as well as any future capital surcharges to be set. • Investment Income - This account records interest earned on the investment of all idle cash in the Water & Sewer Debt Service fund. • Interest & Penalties - Penalty assessments on late payment of water & sewer bills, as well as turn on/turn off fees. County Agricultural Preservation Program - Harford County can enter into installment contracts to purchase easements for agricultural land preservation purposes. These purchases are to be primarily funded with Transfer Tax. The Harford County Agricultural Land Preservation Program allows land owners to preserve productive farmland for future generations through the use of conservation easements; in addition, the land owner receives payment for selling their development rights and/or a tax credit. The Harford County Agricultural Land Preservation Program (HALPP) was established to preserve productive agricultural land and woodland which provides for the continued production of food and fiber for the citizens of the County. The program is administered by the Department of Planning and Zoning and the Harford County Agricultural Advisory Board. Revenue for this program is derived from the sources listed below. • County Transfer Tax - Harford County imposed a 1% Transfer Tax on any instrument of writing that conveys title to, or a leasehold interest in real property, effective July 1, 1993. The proceeds are to be distributed 50% to the County’s Agricultural Land preservation program and 50% to fund school site acquisition, construction, etc. • Proceeds from Installment Loans - Proceeds from Installment Loans are an accounting requirement when the County enters into an Installment Purchase Agreement (IPA) with a land owner. IPA’s are from 20 years with interest and a small portion of principal being paid each year. • Other - Includes investment income and fund balance appropriated. State Agricultural Preservation Program - The Maryland Agricultural Land Preservation Foundation (MALPF) was created to preserve productive agricultural land and woodland, via the Purchase of Development Rights (PDR), to provide for the continued production of

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