FY 25 Harford County Government Proposed Operating Budget

endorses this recommendation.

III. Recommendations

A. General Fund Budget

Based upon our review and analysis of procedures already outlined, the Committee recommends that the FY 2025 General Fund

Budget increase the FY 2024 Net Adjusted General Fund Budget, of $694.4 million, by 3.65%. This

represents approximately $719.8 million in ongoing revenues for FY 2025. Note, based on the current

collection of income tax, the Committee was concerned over the declining withholding and whether

that was indicative of slowing wage growth and a shrinking labor force. At the same time, the

Committee was made award that the State’s Comptroller’s Office was implementing a new tax

software system and that there could be some temporary issues with collections and disbursements.

Due to this uncertainty, the committee opted to employ the use of the 3.5% long-term growth average

to smooth revenue projections.

While much of the capital budget is debt financed and not likely to affect the General Fund in

FY 2025, the Committee is concerned about the long-term impact of rising material prices and higher

interest rates will combine to increase debt service costs in future years. Another long-term concern of

the General Fund the Committee discussed was the commercial property component of the assessable

base, particularly the demand for office space and retail that is transforming in this post COVID

economy. The Committee welcomed the opportunity to discuss future development in the County

with the department heads of Planning & Zoning, License, Inspection & Permits and Economic

Development and encourages the County to continue to adapt to the big changes underway in how

people live, work, shop, and play.

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