FY 24 APPROVED OPERATING BUDGET

COUNTY BUDGET POLICIES AND PROCESS

Revenue Policies Harford County calls for a diversified and stable revenue system to shelter the County from short-run fluctuations in any one revenue source.

Revenue Estimating and Long Range Forecasts

a. The County will estimate its annual revenues by an objective, analytical process. b. Annually, the County will update revenue projections for three consecutive years. As part of this annual process each existing and potential revenue source will be re examined. c. The Treasurer shall make all checks necessary to assure that property appraisal and assessment procedures are fair and accurate (although typically these are State functions). d. The Treasurer and Director of Planning and Zoning shall check property classifications to ensure that zoned land carries the proper appraisal. e. The County will follow an aggressive policy of collecting property tax revenues; the annual level of uncollected property taxes shall not exceed 1.0%. f. The County will maintain all user charges and fees at a level related to the cost of providing the service. A review of the user charge and fees will be completed annually to determine the impact of inflation, and/or changes in activity, and determine if adjustments in the rate are necessary. g. The County will set the fees and user charges of enterprise funds - such as water and sewer, at a level that fully supports the total direct and indirect cost of the activity; including the cost of annual depreciation of capital assets. Operating Budget Policies

Expenditures

The county will pay for all current expenditures with current revenues. The County will avoid budgetary procedures that balance current appropriations at the expense of meeting future years’ obligations. The County will not postpone expenditures, accrue future years’ revenues, or roll over short-term debt.

Maintenance of Capital Plant and Equipment

The budget will provide for adequate maintenance of capital plant and equipment and for their orderly replacement based on the schedule prepared under the capital improvement budget policy.

Pension Plans

The County will provide for adequate funding of the Volunteer Firemen’s Pension program and the Sheriff’s Pension Plan by establishing an actuarial reserve. Pay-as-you-go pensions will not be established. Actuarial analysis on the pension systems will be performed at least biannually.

Budgetary Control

The County will maintain a budgetary control system to assist in adhering to the enacted budgets of various operating funds. In addition to this the County will prepare regular reports comparing actual revenues and expenditures to budgeted amounts.

41