FY 26 Approved Operating Budget

Basis of Budgeting Annual budgets are adopted for the General Fund, Highways Fund, Agricultural Preservation Fund, Stormwater Management Fund, Tax Increment Financing Fund, Parks and Recreation Fund, Capital Projects Fund, W& S Enterprise Fund, Internal Service Fund, Firemen’s LOSAP Fund, and the Sheriff’s Office Pension Trust Fund. Budgets are not adopted for the remaining private purpose trust funds due to their nature. The Internal Service Fund and the Pension Fund budgets are for management control only. Encumbrances are treated as expenditures for budgetary accounting purposes; payroll is accrued for financial statement purposes only; and interfund reimbursements are eliminated for financial statement purposes. The capital budget reflects appropriations at the individual project level. Expenditures and encumbrances may not legally exceed appropriations at that level; and the County Council and the County Executive must approve all transfers of appropriations between projects. Statements of revenues, expenditures, encumbrances, changes in fund balances, and budget (non-GAAP vs. actual) are prepared for each governmental fund with an annual budget. The government-wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The County is required to prepare a balanced budget in which current revenues will be sufficient to support current expenditures.

Basis of Accounting & Budgeting

Fund Type General Fund Highways Fund

Accounting Basis Modified Accrual Modified Accrual Modified Accrual Modified Accrual Full Accrual Modified Accrual Modified Accrual Modified Accrual Full Accrual

Budgeting Basis* Modified Accrual Modified Accrual Modified Accrual Modified Accrual Modified Accrual Modified Accrual Modified Accrual Modified Accrual Modified Accrual

Ag Land Preservation Capital Projects Fund Water & Sewer Fund Parks & Recreation Special Revenue Watershed Management Tax Increment Financing Self Insurance Fund

*Budgets are adopted using the same basis of accounting as that used for reporting purposes, except for the following: • Encumbrances are treated as expenditures for budgetary accounting purposes • Payroll is accrued for GAAP financial statement purposes only • Interfund reimbursements are eliminated for GAAP financial statement purposes • The use of prior years’ fund balance is reported as another financing source (appropriated fund balance)

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