Harford County, Maryland FY 24 Proposed Operating Budget

billing. Any fee increases would require County Council approval, and as such were not included in the available revenue. If any fee increases are passed into law, the Committee would support a reasonable revision of the County's budgeted revenues. One area of particular concern for the Committee is the structural deficit of the County and the use of fund balance in the FY 2023 General Fund Budget. Budgeted expenditures grew by 14%, while budgeted revenues grew by 7%. The difference was made up with nearly $90 million in fund balance. While the Committee is not opposed to the use of fund balance, it recommends that its use be primarily for one-time expenditures. Unfortunately, that was not the case as based on our current projections on going expenditures exceed on-going revenues. The Committee strongly encourages the County Executive and the County Council to correct this imbalance in a prudent and practical manner. Finally, while the County's debt affordability ratios are healthy and in-line with other AAA rated counties, the FY 2023 Capital Budget had a significant increase in future bonds. While the Committee understands the capital needs of the County and the rising cost of construction projects, there was concern expressed regarding the trajectory of future debt. The Spending Affordability Advisory Committee ("Committee") was created by Executive Order 92-2 and further amended by Executive Order 00-04. The Executive Order charged the Committee as follows: a. On or before February 15th of each year, the Committee shall submit a report to the County Executive with recommendations of fiscal goals for the County budget for the next fiscal year. b. The report shall contain fiscal goal recommendations for the next fiscal year in the following areas: i) Recommended level of County spending for the operating fund ii) Recommended level of new debt authorization iii) Recommended level of unassigned fund balance or retained earnings iv) Any other findings or recommendations the Committee considers appropriate I. Purpose

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