FY 25 Harford County Government Proposed Operating Budget

B. Debt Authorization

The Committee spent time discussing the County debt authorization with the Treasurer,

reviewing the Debt Management Policy and the expected debt levels in future years. The Policy

appears to place reasonable parameters on the issuance of debt by the County. A review of expected

levels of debt from FY 2023 through FY 2029 indicated the County remained comfortably within the

debt metrics imposed by the Policy. Based on discussions with the Treasurer, the new debt needs of the

County are very manageable.

As the County issues new debt, the Committee strongly urges the Administration to consider

potential impacts to debt service fromother funds. The Committee will continue to study this process

each year.

C. Fund Balance

The Committee recommends that the Fiscal Stabilization Fund be maintained at a minimum of five

percent of the General Fund Operating Budget with an additional $20.0 million in unassigned reserves to

deal with any unexpected expenditures or revenue shortfalls. Total reserves in the General Fund should be

maintained at a level of $150.0 million to maintain the County’s AAA bond rating.

D. Additional Recommendations

The Committee believes that its recommendations and forecasts should be reviewed and tested

at fiscal year-end 2024 and throughout FY 2025 as it prepares its recommendations for FY 2026.

Revisions in revenue estimates prepared by State or County agenciesor supplemental budget

authorizations occurring after the date of our report may require adjustment to these recommendations.

Typically, the Committee’s focus has been on income tax revenues and property tax revenues.

We have typically assumed static balances in the other budget areas but have tried to make the County

aware of any significant areas of note.

The Committee recognizes the County’s need to utilize our forecasts in long range budget

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