FY 24 APPROVED OPERATING BUDGET

COUNTY BUDGET POLICIES AND PROCESS

• 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 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

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