FY 25 Harford County Government Proposed Operating Budget

COUNTY BUDGET POLICIES AND PROCESS

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 food and fiber for all citizens of the State. MALPF, along with the Maryland Department of Planning, co administers the Certification of Local Agricultural Land Preservation Programs. Revenue for MALPF is derived from the following sources: • Maryland State Property Transfer Tax - Harford County receives a portion of this tax assessed on all real property transfers. • Maryland State Agricultural Land Transfer Tax - Maryland imposes a State Agricultural Land Transfer Tax on all transfers of title on agricultural land taken out of production. Maryland counties without Certified Agricultural Land Preservation Programs are required to remit two-thirds of the revenue to MALPF. Counties retain one third for agricultural land preservation purposes. Counties with Certified Local Agricultural Land Preservation Programs may retain 75% of

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