FY 26 Proposed Operating Budget Book

Any other findings or recommendations the Committee considers appropriate In discharging its responsibilities pursuant to the Executive Order, the Committee was cognizant of the need for a Report which, when based purely upon the consensus findings and conclusions of the Committee, would be used as a tool by Harford County Government in assisting the budgeting as well as other processes. The resulting methodology is similar to that which has historically been utilized to predictanticipated revenue growth. The Committee primarily used publicly available data with realistic and recognized methodology in its analysis. The Committee had no preconceived intentions as to the findings or recommendations contained herein. Methodology and Background Methodology, Background and Data Studied Since its inception in 1992, the Committee has been reporting under the County's Executive Order creating the Committee. We werevery fortunate that the composition of the Committee consisted of six returning members and one new member, who worked well together to complete this task with a broad base of relevant experience. In addition, the County Treasury and Budget staff are familiar with the Committee’s process and can provide relevant guidance. Therefore, we were able to focus all our efforts on our primary charges. Over the years of operation, the Committee has formulated a methodology for adopting a guideline of the percentage increase in spending affordability for the County. The Committee again decided to follow the traditional "budget based" estimate of spending affordability. That is, estimating the level of revenue that will become available through the collection of taxes and fees, assuming no increase in applicable rates not already enacted or announced. This approach contrasts methodologies adopted by certain other jurisdictionswhich are typically defined as estimating spending levels tied to citizens' ability to pay for additional services. We also utilized information from the following sources: Income tax collections for Harford County, through February 2025, provided by the Treasurer. Property tax collections, and estimates, for Harford County, through FY 2025 and FY 2026, provided by the Treasurer. Additional input from the Treasurer as to the impact of the Maryland General Assembly recent actions and anypertinent information or estimates from the State Comptroller’s office. The County Debt Management Policy dated April 13, 2010, and a debt burden analysis for years 2024 2030, provided bythe Treasurer’s office. The County FY 2024 Annual Comprehensive Financial Report. The County provided access to the Directors of the Departments of Planning & Zoning, License, Inspections & Permits, and Economic Development. These individuals provided the Committee with insight into future growth and development of the County. The County arranged for Andy Bauer the vice president and regional executive for the Baltimore branch of the Federal Reserve Bank of Richmond to engage in an open dialogue with the members of the committee regarding the regional economy. Selected Method - Further Qualifications The Committee reviewed, in detail, revenue estimates for the property tax and the local income tax. Collectively, property and income tax collections represent approximately 87.0% of total General Fund revenues to the County. The Committee reviewed historical data, analyzed trends, and forecasted revenues for both FY 2025 and FY 2026

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