Proposed annual operating budget for the 2023-2024 fiscal year for Harford County, Maryland
ROBERT G. CASSILLY, Bezirksleiter Robert McCord Office of Budget and Management Kimberly Spence, Director Benjamin Lloyd, Senior Budget Analyst Christen Sullivan, Senior Budget Analyst William T. Watson, Senior Budget Analyst Susan McCracken, Budget Analyst Schatzmeister Robert Sandlass Board of HARFORD County
Governor Rato Patrick S. Vincenti
Dion F. Guthrie - A District Aaron D. Penman - B District Tony “G” Giangiordano - C District James Reilly - D District Jessica Boyle-Tsottles - E District Jacob Bennett - F District
Harford County Department of Administration, Budget and Management 220 South Main Street, Bel Air, MD 21014 April 2023
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bush resolution
On March 22, 1775, 34 residents of Harford County gathered on the Bush, the main road between Annapolis and Philadelphia, near present-day Maryland Routes 7 and 136.
They signed a pledge to oppose the British encroachment on American rights 16 months before Philadelphia signed the Declaration of Independence.
The Bush resolution is registered with the Harford County Board of Records from 1774 to 1777 and is considered the first resolution of its kind passed by duly elected officials.
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Statement of compliance with Government Financial Officials Association program standards
The Association of Government Finance Officials of the United States and Canada (GFOA) has awarded Harford County, Maryland, the Extraordinary Budget Award for its annual budget for the fiscal year beginning July 1, 2022.
To qualify for the award, government entities must issue budget documents that meet program criteria, such as policy documents, operational guidelines, financial plans, and communications equipment.
The award is only valid for one year. We believe that our current budget continues to meet program requirements and will submit it to the GFOA to determine if you qualify for another award.
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Harford–Siegel County
The shield is golden and symbolizes the county's wealth and the fertility of the fields. The wavy blue stripes on the shield represent the county's three major rivers - Deer Creek, Bynum Run and Winters Run. The emblem consists of two forearms holding a white quill in their right hand, symbolizing the pen used by those who wrote and signed the resolutions of Bush. In his left hand he holds a sword that appears to offer material from the Aberdeen Proving Grounds. The motto “At risk of our lives and fortunes” is the last eight words of the Bush resolution and maintains the same spelling for “risk” as in the document.
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(This page was internationally left in blank)
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Harford County, Maryland Annual Operating Budget Index
Documentation guidelines ..................................................................... .... ............................................... ... . .... 16 Budget overview for the fiscal year. .................................................................. . ..................................... 20 Expense Report Accessibility ..................... .................................................................................. .. .............. .................................. .. ............. . .... ........... 40 SUMMARY - ALL FUNDS .............. ............... ... .. .................................. ............... ..... .. .. .......................... ...... 52 Summary – General Fund .... ..... .................................. ............... ...... ...... .......................... ............... ...... ..... ............... ......... ....... 60 Summary – Road Fund ... ...... ........................................... ................ ...... ...... ................................ ................ ...... ..... .. .......... 68 Summary – Water Supply and Sanitation Fund ... .............. ...... 68 74 Summary – Water and Sewage Debt Service Fund ......................................... 82 Special Revenue Fund/Parks and Recreation Summary .. ............... 90 Special Revenue Fund/AG Conservation Municipalities ......................... . ............ .......................... ........... ............................................................... ............. ........................ ... ....... 98 Summary of Special Income Fund/AG Reserves - Country... 106 Watershed Management Summary . ....................... .. .................... ..... ....................... 1 14 Summary of the tax increase financing fund ......... ...... .... ................. ................... .... ........ .................. 1 20 District Judges .................. ... ......... .................... ... .................. . ........ .................... ..................... .. ....... .. .................... ................... .. ....... ................ 1 26 Management .... ....... .......... ... ........ ...................... ................ .................. ........ ........ ............... ........... ......... .... ........... ............... ......... ........... 1 36 Shopping. ....................... ... . ............... .................................. . ............... ........ ........................ .. . .............. ....................... ......... ... . ...... 1 60 Office of the Treasury ............................ ............. .. .... ... .......................... ............... .. .... ... . ........................ ......................... 1 7 6 Law .......... ........................................... ....................... ...................... ..... .................... ................... ..... ................... .................... .......... . .................. ... ... 1 96 Planning and zoning......... ......... . .............. ............ ........... ............ . ............................................ ................. ....... ..... ..... 208 Human Resources ............ .................. ..... ................... ................................... ....... ................ ........... ................ ...... ............. 2 30 community service . ......... ................. ...... .................. ....................... ... ....... ......... ........ ............... ... ...... 2 42 Assistance Center for People with Disabilities........ ............ ................ . .................................................................. .. .. .......... 2 64 Government-community relations ................................... .... ... ................ .................................... .... .. ................. 2 68 Health ........................... .... ............. ................................. .................................................................. ... .. . ..................................... ..... .. . ........................ ................... 2 78 housing and community development . .................................................. . .................................................................. . ................................ 2 82 Information and communication technology ................ . .................................................. 2 88 Sheriff's Office ..................... .................................................................... . ........................... ................................. . ........................... .. .... 2 98 Department of Emergency Services ......... . .. .................................. .................. ... .......................... ................... 3 38 Inspections, Licenses and Licenses ..................................................... ... ............................ .................... .... ......................... ... ........... 370
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Public works ..................................................................... ................ .................................. ............... . .. .......... 3 88 district council ..................................... .. ....... ... ................................ .. .... .......... ...........Chapter 478 Justice ................... .. ..... ............................................ . .. ... .............Chapter 500 ..................... ..... ..... ...... ................................... ...Chapter 526… …………… ……………………………………………………………………………………………. ...................................Chapter 534……………………………… … …………………………………………………………………………………………………… ............. . .......Chapter 544 Harford Community College............ ......................... ... ..................... .. ................ 5 48 Libraries ... .. ... ............................. ................................ ... ............................................... . ....... ...................................................... . ... ..................................... ... ..... 5 52 Parks and Recreation. ................................. .... .................................................... ...... .. .. .................................. 5 56 Conservation of Natural Resources . ........................ ................................... . . ..................................................... .. .. ... 5 84 Economic development ..................................................... .. .. .. .................................................. ...... ... .. ....................................... . ... ... .................................. ............... .. .... .............5 94 Settlement of debts........................... .. ... ............................................................. ... . ... ............... ..........Chapter 606 Insurance.................. . ... ........................................... ................. ... ................................................................ .. ... ........... ................................................ ... ... ........... Chapter 624 Benefits.................................. .... ..... ... ........................................................... .... .. ... .......................... ................... ... . .... ..................................... ..... ..... ..... ................................... 6 26 Paid/non-sector.... ... ............................................................ .. .. ..... .................................. ..... ... ..... .............. ........... 6 30 capital budget .. ........... .. ...... ......................... ...... ....... ...... ...... .......................................... ............ ... .. ...... ............................ ..... ..... 6 44 Grant Summary. ........................................... .......... ... ..................................................................... . .. .. .................................. 6 62 Other funds ..................... . ........................................... .......... . ..................................... ....... .... . ..................................... . 6 72 Glossary...................................................... .. . .................................................. .................................................................. ................................... 6 76
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April 14, 2023
My first budget as county administrator puts Harford County back in fiscal responsibility and continues to provide essential services to our citizens. In times of economic uncertainty, we need to focus on needs, not wants. This budget reduces our structural deficit, makes big investments in public safety and fully finances public schools, all without raising taxes. Our capital budget is particularly affected by high inflation and warning signs of a national recession. In response, we slowed the pace of our capital projects, while maintaining our long-term plan to build key structures.
Structural deficits are an intolerable burden
District government expenditures in recent budget years have led to a structural deficit. This fiscal year, the county used nearly $90 million in savings to balance the budget. Of that total, $30 million was one-time expenses, but nearly $60 million was ongoing expenses. This is practically and morally unsustainable. While the current policy trend is to hand over financial accounting to the next person in charge, we must start addressing the deficit now to avoid placing an unsustainable burden on our children. In my FY24 budget proposal, the structural deficit was halved. With the enormous uncertainty in our national and global economy, a reduction in spending is imperative. This uncertainty is reflected in rising interest rates, inflationary pressures and labor strikes. In addition, at the local level, we face more unfunded government education contracts, largely due to the $32 billion Maryland Plan for the Future (also known as "Kirwan"). The state's mandate to increase police spending is also important, but indirectly in the form of additional personnel, equipment and space to support body camera image processing, additional training, etc. State laws have made policing more expensive in recent years. In order to reduce deficit spending, most operating budget items were carried over from the current fiscal year without increases. We are using a small portion of the remaining balance to provide a phased, conditional 3% Coke to all counties, sheriff's offices, prosecutors and justice system officials. Half of this amount will be realized in July, the other half could be realized in January, depending on the economic situation. This should help keep our people engaged even in difficult times. The overall reduction in the structural deficit was achieved through the recovery of US$12 million in user fees that would otherwise have been paid in taxes.
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Public safety is the top priority
Emergency Services - The budget to support firefighting and emergency services has increased significantly by over 20%. This includes nearly $8 million for 111 new EMS positions (41 EMTs, 60 First Responders, 8 Shift Supervisors, 1 Shift Supervisor and 1 Trainer). Historically, services for these additional positions have been provided by paid Volunteer Fire Company personnel through the Harford County Volunteer Fire and First Response Foundation. The Foundation funds these services by charging healthcare providers for the costs of the patients they serve. At the Foundation's request, Harford County has assumed this responsibility and will bill the beneficiary's health insurance company directly. Due to the nationwide shortage of EMS workers, the county must pay very competitive wages and sign bonuses to rapidly replenish staff to meet current EMS needs. The county is also in the process of purchasing and upgrading volunteer company ambulances and adding dormitories to existing volunteer companies to accommodate new county first responders. The Department of Emergency Services budget increase also includes $1,258,325 for 17 new dispatchers to reduce the unacceptable workload of 9-1-1 personnel. This workload threatens our ability to adequately respond to the thousands of emergencies residents face each year. The additional staff will also have to adapt to changes in state law prohibiting the routing of 9-1-1 calls to in-town dispatchers. This was in addition to nearly $1 million in contracted services for additional EMS device maintenance, EMS billing, and related support services. Sheriff's Office - To continue attracting and retaining the best officers, we must offer competitive salaries. The current budget for FY23 includes refills and a 7% COLA. For FY24, in addition to the conditional 3% COLA, the budget includes an additional $4,706,115 for salary increases, $1,048,762 to fund 10 new associate positions, $538,514 for additional overtime, $457,440 -$ for the purchase of 30 additional police vehicles and $697,951 for additional food and beverage services at the detention center and $953,261 for additional medication and prescription drugs for prisoners who meet new government requirements. Harford County Public Schools – We continue to fulfill the county's commitment to providing a quality education for our children. For the past three years, the county has fully funded the Board of Education's budget request. This funding, combined with the massive infusion of COVID-19 relief funds, has allowed HCPS to amass an unprecedented $92 million in unspent taxpayer dollars. State governments, which were underfunded for HCPS in the next fiscal year, are finally starting to do their part. When state funds are combined with $304,852,402 in municipal funds and a portion of the school system's budget balance, HCPS will be able to fully fund its budget for fiscal year 2024. County funding continues to cover state requirements for maintenance work. An additional $15 million has been allocated in the operating budget for site acquisitions to accommodate future enrollment growth. This includes funding a new primary school/Harford Academy (for students with special needs) in the Bel Air area, making it eligible for state funding. Without state involvement, the county would be the sole funder of the project, which is expected to cost a total of $125 million. Other major school projects include a $20 million upgrade to Harford Technical High School, a $17 million upgrade to Aberdeen High School and a $16 million project to a combined Elementary/Harford Academy project. As the county strives to meet the school system's growing need for more funding, I encourage school boards to look for efficiency gains. Out-of-class salaries have skyrocketed, with 24 headquarters administrators earning more than $170,000 a year. Overall, six-figure salaries at headquarters total nearly $20 million. Funding should be prioritized for those working on campus over those working off-campus or remotely.
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Harford Community College – HCC has accumulated a funding balance of $44 million from prior funding. The budget does not include a change in operating resources for the year, but does include an additional $16.7 million for the new Chesapeake Welcome Center. Municipal Councils – Council budget reflects the addition of new legislative positions. This also includes an increase of approximately $100,000 for "Contract Services", bringing the total budget for unspecified services to the Board to $289,800. Attorneys – A net increase of 1.4 percent for attorneys includes 13 new positions, one managing director, one administrative assistant, two paralegals and four body chamber technicians, with three more to be hired in January. In addition, two temporary positions for paralegals were made permanent. Public Works – DPW's budget was essentially the same as last year, except for an increase of $6,100,000 in payments from Harford County to Baltimore County for waste transported by privately owned garbage trucks to the Baltimore county. The approximately $8.5 million increase reflects the transfer of facilities and operations staff formerly reporting to the Managing Director to DPW and the transfer of Capital Projects positions formerly under Parks and Recreation to DPW's Capital projects. These transfers are budget neutral. County Government - The budget shows a significant increase solely due to the abolition of the Government and Community Relations department and the transfer of the remaining positions in that department to administrative staff. With the exception of these transfers, the district government budget remains the same as last year. Administration - The administration budget has been significantly reduced due to the transfer of facilities and operating personnel previously under the responsibility of the Administrator to the Department of Public Works. Funds will be added to the Managing Director's resource management to equip and support the Southern County Task Force. Department of Procurement – The budget is increased primarily due to the anticipated increase in the cost of vehicle fuel in the county. This budget has also been increased to accommodate the handover of purchases to Real Estate Acquisitions personnel previously allocated to the Facilities and Operations department; this change was made to improve transparency, accountability and efficiency. Legal – The budget allows for modest increases in professional salaries to maintain the competitive salary levels needed to attract and retain highly qualified legal talent. The increase in professional salaries was offset by savings of more than $1 million over previous years, which the county achieved by hiring outside attorneys, while the legal department now provides legal services in-house. Human Resources – The budget was increased by 10 percent to cover increases in market rates for district medical services and related contracted professional services to support the hiring and compensation process. This also includes an additional $10,000 to help fund the county's new internship program for high school and college students. The internship program aims to recruit a diverse range of local graduates for long-term employment in order to take advantage of the many excellent employment opportunities within county government. Economic Development – The Economic Development budget was significantly reduced as housing-related functions, staffing and all costs were transferred to the separate Department of Housing and Community Development.
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Housing and Community Development – The budget for this requalification department consists mainly of staff transferred from the economic development department. The budget includes resources for the new Director and Deputy Director positions. The Director was removed from her previous position as Deputy Secretary of the Department of Community and Economic Development.
Information Technology – Budget increased due to the creation of a new Deputy Director position and increased software maintenance and licensing costs.
Treasury - This budget reflects specific itemized cost reductions.
The Harford County Public Library - HCPL has accumulated a funding balance of $12 million from past donations. This budget remains unchanged from the previous year.
Parks and Recreation – There were no significant budget changes from last year.
Capital budget
The county's infrastructure projects include $23 million for road and bridge maintenance and repairs, $2 million for countywide walking trails and linear parks, and $730,000 for the development of the new Perryman Park. Federal and state subsidies continue to help bring high-speed Internet to more than 2,500 rural homes in Harford County. Finally, I would like to thank my domestic staff and district staff for their efforts. I also want to thank the taxpayers who fund the county budget. I take my obligation to be a good steward of your funds very seriously. In an environment where county governors across the state are raising taxes, I am determined to live within my means. Thanks for trusting me. It is a pleasure to serve you.
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Understanding the Budget Document Harford County's annual operating and capital budget represents our comprehensive financial and operating plan for the current fiscal year. The main components of the annual operating budget are described here. The annual capital budget and the Capital Improvement Plan (CIP) are described in separate documents. Budget Information This information is prepared by the District Executive and provides an overview of government priorities and key budget priorities. Budget information includes an explanation of the operating and capital budgets and the capital plan, as required by the Harford County Charter. Includes any significant changes in fiscal policy, program development, expenditures, resource allocations, or revenues compared to the prior year. Documentation Guide This guide is intended to familiarize the reader with the general format, organization, and content of the county's operating budget. County Overview This section provides historical and demographic information about Harford County, as well as the county's organizational structure and statistics. County Budget Policies/Processes This section explains county policies and planning processes that affect the development of the annual budget. It includes the process of preparing, reviewing, accepting, and revising the annual budget and a description of each major fund. Fiscal Year 2024 Budget Summary This section contains data that summarizes the Fiscal Year 2024 Budget. Describes topics used to develop the Fiscal Year 2024 Budget, including analysis of trends and assumptions, economic outlook, organizational changes, mandates state and federal, and much more. Spending Capacity Report This section contains a copy of the Spending Capacity Advisory Committee Report to the County Government (established by Executive Order 92-2). The report includes the commission's recommendations for budgetary targets for the county's budget for fiscal year 2024. All Funds Summary This section provides financial data that summarizes total receipts and disbursements for all funds. Data is presented in different ways depending on type (eg personal services, contracted services, etc.), funding, source of income and industry.
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The summary summarizes grant and income information by fund for each fund in the county. Data is presented in different ways by characteristics (eg personal services, contract services, etc.), income sources and industries. A financial statement detailing significant changes to the Fund is also provided. Department Information The following information is available on the tabs for each department: The department org chart shows which departments are involved in the functions of each department. The department narrative includes the department's founding purpose and authority, a mission statement that supports the county's overall strategy, and selected key objectives in support of its mission. The Sector Financing Overview provides funding information for each sector by type, funding source and sector. The Grant Summary provides information on department-administered grants or matching funds allocated in the department's budget. Also, include a brief description of the county's responsibilities or any impact the grant will have on the department's day-to-day operations after the grant expires. Sector Information The following information is provided under each sector tab for sectors related to sector functions: the sector narrative describes the origin of each sector and specific functions and activities within the sector; outlines current fiscal year targets for achieving industry goals. The Summary of Sector Characteristics provides financing information for each sector by characteristic and source of financing. Financial notes explain significant changes in departmental funding levels. The personnel overview contains a list of the personnel required to perform the department's functions.
The financial notes explain significant changes in sector funding levels.
The personnel overview represents a list of the personnel required to perform the department's tasks.
Performance measurements measure the department's success in achieving and achieving its objectives. The agency's specific situation was analyzed and an action plan developed
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maintain or improve conditions. Each measure defines the sector's success in implementing the action plan. Debt Repayment Harford County is required to prepare an annual budget for the amount of debt incurred, as well as principal and interest payments due on lease payments. This section details the county's principal and interest payments for each fund during the fiscal year, as well as the service costs incurred in issuing or servicing the debt. Insurance The county maintains a self-insurance fund that covers motor vehicle and general liability claims, as well as damage to county property. The funding requirement allocated to each primary fund is determined based on an annual actuarial review of contracts and an internal assessment of loss experience and risk. This section details the appropriation amounts required for each Fund for the 2024 fiscal year. Benefits This section provides a list of appropriations for the 2024 fiscal year and represents the expenditure portion of the primary fund that provides the following benefits to district employees : pensions, unemployment insurance, death benefits, life insurance, employee tuition reimbursement and health care benefits for retired employees. The Paygo/non-departmental debt management policy in the Harford County Five-Year Business Plan recognizes that PAYG (Paygo) funds will continue to be used for small renovation and repair projects with useful lives of less than ten years. This section provides a list of planned projects and funding allocations for the 2024 fiscal year. Non-departmental expenses include expenses that are essential to the functioning of county government and are not the responsibility of any specific department or agency. This section defines these costs and describes them in detail. This includes closing reserve accounts, rural property plans, municipal grants and state grants. Contingency Reserves This section describes the contingency reserves of the General Fund and the Road Fund. Pursuant to Section 506 of the Harford County Charter, reserves cannot exceed 3% of any fund. Capital Budget This section contains a summary highlighting the capital budget for fiscal 2024 and the six-year capital improvement plan (CIP). A more detailed description of both is included in a separate document: Capital Budget and Capital Improvement Plan for Fiscal Year 2023-24.
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Grant Summary This section summarizes receipts, grants, and disbursements of specific federal, state, and private funds received in the form of grants. Provides a chart with a brief description of the grants the county is expected to receive in fiscal year 2024, along with grant amounts and any necessary grant matches. Other Funds This section provides estimated retained earnings and the estimated balance of retained funds, as well as Fleet to Auto Insurance Trust Funds, Volunteer Firefighters Pension Funds (LOSAP), Sheriff's Office Retirement Plan, and Program Administration for Other Programs post-employment benefits (OPEB) described – internal services. Glossary In this tab you will find a glossary that defines specific terms for understanding budgets. Index An alphabetical list of items contained in the document.
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Proposed budget for Harford County for fiscal 24. All funds total $1,184,307,000.
operating budget
Capital budget
955.002.000$
229.305.000 USD
general background
general capital
757.936.000$
64.017.000$
road background
Watershed: $11,850,000
68.370.000$
Water Supply and Sanitation Fund
public security
79.815.000$
14.510.000$
harford community college
Debt services for water and sewer
12.585.000$
16.715.000$
Harford County Public Library
Special events for parks and recreation
lace background
775,000 US dollars
855.000$
Board of Education
nature conservation AG - district
66.077.000$
26.500.000$
solid waste services
Salvar GT - Status
175,000 US dollars
270,000 US dollars
parks and recreation
Financing for tax increases
11.790.000$
2.665.000$
road background
Watershed Management Fund
23.210.000$
6.006.000$
Fund for Water and Wastewater US$ 20,186,000
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Harford County, MD, Fiscal Year 2024 Tax Base, General Fund
Fiscal Year 2021-2022
Fiscal Year 2022-2023
Fiscal Year 2023-2024
tax base
tax base
tax base
estimated income
estimated income
real income
property
@0,8913$
@0,8413$
@0,8413$
Annual fee 29,428,924,044
262.300.000 30.322.120.528
255.100.000 31.617.734.459
266.000.000
half year fee
78.536.968
700.000
89.742.066
755.000
47.545.465
400.000
。
real estate subtotal
29.507.461.012
263.000.000 30.411.862.594
255.855.000 31.665.279.924
266.400.000
Private propriety
@ 2.2283$
@ 2.1033 $
@ 2.1033 $
Companies not incorporated
190.050.825
424.500
17.829.550
375.000
16.640.517
350.000
railroads and utilities
691.125.323
15.400.000
746.463.806
15.700.000
855.798.032
18.000.000
company property
691.125.323
15.400.000
760.727.446
16.000.000
713.165.026
15.000.000
Personal property subtotal
1.572.301.471
31.224.500
1.525.020.802
32.075.000
1.585.603.575
33.350.000
Total
31.079.762.483
294.224.500 31.936.883.396
287.930.000 33.250.883.499
299.750.000
Add and subtract interest, discounts, and other credits
(2.760.500)
(2.751.500)
(6.989.500)
net tax
291.464.000
285.178.500
292.760.500
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Harford County, MD GJ 2024 Road Fund Taxable Base
Fiscal Year 2021-2022
Fiscal Year 2022-2023
Fiscal Year 2023-2024
taxable basic income
tax base
estimated income
tax base
estimated income
property
@0,1366$
@0,1366$
@0,1366$
annual fee
24.963.396.779
34.100.000
25.622.254.758
35.000.000
26.720.351.391
36.500.000
half year fee
67.349.927
92.000
73.206.442
100.000
36.603.221
50.000
real estate subtotal
25.030.746.706
34.192.000
25.695.461.200
35.100.000
26.756.954.612
36.550.000
Private propriety
@0,3415$
@0,3415$
@0,3415$
Companies not incorporated
15.695.461
53.600
14.348.463
49.000
14.641.288
50.000
railroads and utilities
607.027.818
2.073.000
732.064.422
2.500.000
732.064.422
2.500.000
company property
553.147.877
1.889.000
699.853.587
2.390.000
585.651.537
2.000.000
Personal property subtotal
1.175.871.156
4.015.600
1.446.266.472
4.939.000
1.332.357.247
4.550.000
Total
26.206.617.862
38.207.600
27.141.727.672
40.039.000
28.089.311.859
41.100.000
increase or decrease
Interest, discounts and other credits
(199.600)
(239.200)
(951.800)
net tax
38.008.000
39.799.800
40.148.200
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Fiscal Year 2023-2024 Harford County, MD
Long-term debt requirements:
main interests
no
general link
13.156.328 25.237.051 1.980.391 1.790.874 8.431.766 3.500.000 2.750.000
6.260.281 10.482.888
19.416.609 35.719.939 2.662.242 2.846.439 2.900.000 11.588.638 3.750.000
public school link
Community college title
681.851
road link
1.055.565 1.050.000 3.156.872
Loans for agricultural protection 1,850,000
Water and Sewage Titles
Leasing-SBITA
250.000 270.000 420.000 783.159
TIF
415.000
835.000
watershed management
1.138.590 60.250.000
1.921.749 81.640.616
no total
24.410.616
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Harford County, MD Estimated Statutory Debt Statement
Maryland Laws for Fiscal Year 2001 and Prior Fiscal Years
Under Section 25A, Section 5(P) of the Maryland Annotated Code (superseded 1990, amended 1993), the county, as a charter district, is limited in the amount of debt secured by common bonds it can issue at an amount equal to up to 15% of the appraised value of the property in the municipality.
Maryland Revised Law for Fiscal Year 2002 and Beyond
Under Section 25A, Section 5(P) of the Maryland Annotated Code (superseded 1998, amended 2000), the county as a charter district is limited in the amount of debt secured by common bonds that can be issued to 6% of real estate tax base and 15% for movable property.
Real estate, personal property, total
Net appraisal value of the property
31.665.279.924
1.585.641.269
legal
Applicable general debt percentages
6%
15%
exposure limit
Estimated legal debt limit
1.899.916.795
237.846.190
2.137.762.985
Estimated long-term debt outstanding as of June 30, 2023
Projected long-term debt: general debt
154.961.174 6.099.955 18.009.516 269.729.309 28.149.571 19.709.787 496.659.312 82.175.687 10.650.000 34.448.962 6.000.000 133.274.649
solid garbage
community college
Public school
highway watershed
Total estimated long-term debt
Estimated self-sufficiency debt:
Water and sewage bonds and loans, in addition to premiums
Financing for tax increases
farm maintenance debt
SBITA is leasing
Estimated total self-sufficiency debt
Estimated Total Debt
629.933.961
Less: Estimated self-sufficiency debt
133.274.649
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Estimated total debt subject to legal debt limit
496.659.312
Estimated total legal debt limit
2.137.762.986
Less: Estimated total debt subject to legal debt limit
496.659.312
Estimated legal debt margin
1.641.103.674
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Business plan debt load analysis for fiscal year 2022-2029
original budget
proposed budget
in truth
Projection, projection, projection, projection
2022
2023
2024
2025
2026
2027
2028
2029
Expenses (1)(2)
District Council 3,279,679
4.377.176
4.378.696
4.510.057
4.645.359
4.784.719
4.928.261
5.076.109
stands
56.870.876
64.149.194
53.177.556
54.772.883
56.416.069
58.108.551
59.851.808
61.647.362
educate
311.887.353 344.119.463 344.119.463 354.443.047 365.076.338 376.028.628 387.309.487 398.928.772
harford center
620.193
682.212
694.745
715.587
737.055
759.167
781.942
805.400
court library
11.159.781 18.890.693
14.010.613 20.886.654
14.105.355 20.885.407
14.528.516 21.511.969
14.964.371 22.157.328
15.413.302 22.822.048
15.875.701 23.506.710
16.351.972 24.211.911
parks and recreation
10,453,546 15,086,764 Public Safety 125,309,206 154,640,874 166,075,297 171,057,556 176,189,283 181,474,961 186,919,210 192,526,786 Public engineering 60,907,627 77,502,726 95,178,425 98,033,778 100,974,791 104,004 0.035 107,124,156 110,337,881 Social Services 11,781,397 14,842,617 14.4 2 9,499 14,862,384 15,308,255 15,767,503 16,240,528 16 .727,744 Other financing purposes 41,466,345 45,911,000 36,216,604 37,303 .102 38,422 0.195 39,574,861 40,762,107 41,984,970 Debt amortization (3) General debt liabilities 57,406,263 61,118,379 69,336,978 69,761,841 72,464,311 7 4,686,430 77.60 8,543 80,221,173 Other obligations 356 ,128 700,000 700,000 7 00,000 700,000 700,000 700,000 700,000 Total expenses $ 710,389,087 816,700,825 $ 832,312,000 $ 855,605,114 $881,861,882 $908,344,928 $936,255 , 796 964,606.84 3 $13,759,917 13,013. 975 13,404,394 13,806,526 14,220,722 14,647 0.344
capital plane
General fund bonds Stormwater bonds
43.590.000
91.045.000
83.255.000
59.052.475
6.600.000
33.690.000
34.040.000
18.300.000
6.750.000 8.450.000
8.600.000
8.700.000
8.800.000
8.900.000
9.000.000
9.100.000
Road Fund Bonds 4,270,000, Water and Sewage Bonds 11,555,000
11.615.000
2.235.000
5.085.000
5.805.000
5.165.000
5.785.000
5.100.000
10.965.000
8.500.000
12.600.000
17.050.000
14.550.000
16.100.000
15.000.000
Prepaid General Fund
8.172.000
28.260.000
14.142.000
5.527.500
5.727.500
5.087.500
5.937.500
5.552.500
rainwater background
850.000
850.000
1.250.000
1.300.000
1.400.000
1.500.000
1.600.000
1.700.000
road background
10.021.179
10.601.000
13.935.000
15.110.000
15.385.000
16.420.000
17.485.000
18.930.000
Water Supply and Wastewater Treatment Fund 5,650,000
4.280.000
9.686.000
8.950.000
6.650.000
6.300.000
6.800.000
6.350.000
Other sources (all funds) Total capital plan
127.950.821 111.357.315
87.702.000
73.327.125
18.675.000
47.485.000
47.815.000
19.225.000
218.809.000 $ 277.423.315 $ 229.305.000 $ 189.652.100 $ 86.092.500 $ 139.097.500 $ 144.562.500 $ 99.257.500 $
26
Business plan debt load analysis for fiscal year 2022-2029
original budget
proposed budget
in truth
Projection, projection, projection, projection
2022
2023
2024
2025
2026
2027
2028
2029
General debt outstanding on July 1
460.567.556 493.091.391 499.956.119 516.652.885 531.153.517 543.617.039 554.580.060 563.226.680
to add
72.500.000
48.500.000
60.000.000
60.000.000
60.000.000
60.000.000
60.000.000
60.000.000
Fewer redemptions and cuts 39,976,165
41.635.272
43.303.234
45.499.368
47.536.478
49.036.979
51.353.380
54.353.380
General debt outstanding as of June 30
493.091.391 $ 499.956.119 $ 516.652.885 $ 531.153.517 $ 543.617.039 $ 554.580.060 $ 563.226.680 $ 568.873.300
Population (4) 262,977
265.607
268.263
270.945
273.655
276.391
279.155
281.947
Make it happen
71.717
72.434
73.159
73.890
74.629
75.375
76.129
76.890
Taxable Real Estate Value (5) Taxable
Estimate (000 omitted) $31,388,655 $32,958,088 $34,605,992 $36,336,292 $38,153,106 $40,060,762 $42,063,800 $44,166,990
General debt ratio commitments
Debt service as a percentage of expenses
8,1% 7,5% 8,3% 8,2% 8,2% 8,2% 8,3% 8,3%
total debt per capita
1.875$
1.882$
1.926$
1.960$
1.987$
2.007$
2.018$
2.018$
General Debt as % of Estimated Valuation
1,6% 1,5% 1,5% 1,5% 1,4% 1,4% 1,3% 1,3%
political relationship
despise
10,0% 10,0% 10,0% 10,0% 10,0% 10,0% 10,0% 10,0%
total debt per capita
2.500$
2.500$
2.500$
2.500$
2.500$
2.500$
2.500$
2.500$
General Debt as % of Estimated Valuation
2,3% 2,3% 2,3% 2,3% 2,3% 2,3% 2,3% 2,3%
(1) For all subsequent years, the industry growth rate is 3%. (2) Expenditure includes general funds and road funds only. (3) Includes principal and interest. (4) Expected to grow at a CAGR of 1% in future periods. (5) In all subsequent years, it is expected to grow at a compound annual growth rate of 2%.
27
Harford County, MD General Fund Statement of Projected Unallocated Fund Balance
684,882,300 (726,907,363) 169,255,011 General Fund 211,280,074
Total financing balance on June 30, 2022
Revenue 2023 - Estimated Expenses 2023 - Estimated
Estimated total funding balance as of June 30, 2023
Available fund balance as of June 30, 2023 Projected total fund balance as of June 30, 2023
169.255.011
Minus: non-spendable fund balance, long-term income, Minus: restricted fund balance, bond income, earmarked income - public safety, minus: fiscal stabilization fund, reported fund balance reserve (1)
(833.412)
(12.667.902)
(25.000)
(37.896.800) (2.250.000) (10.000.000) (1.600.000) (30.000.000)
Span
Determine landfill closure
income tax
watershed management
Estimated balance of unallocated funds as of June 30, 2023
73.981.897
Estimated sales for fiscal year 2024
694.423.911 (757.936.000)
Subtract projected expenses for the 2024 fiscal year
Estimated unallocated funding balance for fiscal year 2025 and future years
10.469.808
Financial Stabilization Fund Reserve (1)
37.896.800
Financial Stability Fund projected reserves as a percentage of total projected expenditures
5%
(1) To maintain a high credit rating from credit rating agencies, a financial stabilization fund reserve of 5% of the total fund is required. A high bond rating allows the county to sell long-term debt at a lower interest cost, saving on interest expense each year. The policy is set out in the county's five-year business plan.
28
Harford County, MD, Projected Unallocated Fund Balance, Road Fund Statement
road background
Total financing balance on June 30, 2022
25.221.882
52.029.325 (56.151.207)
Estimated sales for the 2023 financial year
Subtract projected expenses for the 2023 fiscal year
Estimated total funding balance as of June 30, 2023
21.100.000
As of June 30, 2023, the funding balance will be available for scholarships
Estimated total funding balance as of June 30, 2023
21.100.000
Less: Stock of funds not related to expenses
(1.800.000)
Minus: Limit fund balance bond yield
(1.400.000) (400.000)
PILOT highway
Estimated balance of unallocated funds as of June 30, 2023
17.500.000
Estimated sales for fiscal year 2024
56.413.655 (68.370.000)
Subtract projected expenses for the 2024 fiscal year
Estimated unallocated funding balance for fiscal year 2025 and future years
5.543.655
29
Harford County, MD, Projected Balance of Unallocated Funds, Declaration of Parks and Recreation Fund
Park and Recreation Fund
Total financing balance on June 30, 2022
123.182
Projected income for fiscal 2023 minus projected expenses for fiscal 2023
760.000 (687.000)
Estimated total funding balance as of June 30, 2023
196.182
As of June 30, 2023, the funding balance will be available for scholarships
Estimated total funding balance as of June 30, 2023
196.182
Estimated balance of unallocated funds as of June 30, 2023
196.182
Projected income for fiscal 2024 minus projected expenses for fiscal 2024
818.000 (855.000)
Estimated unallocated funding balance for fiscal year 2025 and future years
159.182
30
Harford County, MD, Estimating Table of Unallocated Farmland Conservation Funding Balance – County
District for the preservation of agricultural lands
Total financing balance on June 30, 2022
47.102.288
Estimated sales for the 2023 financial year
10.000.000 (14.402.288)
Subtract projected expenses for the 2023 fiscal year
Estimated total funding balance as of June 30, 2023
42.700.000
As of June 30, 2023, the funding balance will be available for scholarships
Estimated total funding balance as of June 30, 2023
42.700.000
Estimated balance of unallocated funds as of June 30, 2023
42.700.000
Estimated sales for fiscal year 2024
10.500.000 (26.500.000)
Subtract projected expenses for the 2024 fiscal year
Estimated unallocated funding balance for fiscal year 2025 and future years
26.700.000
31
Estimated Balance of Unallocated Funds for Farmland Conservation in Harford County, MD - State
Earth to protect farmland
Total financing balance on June 30, 2022
Estimated sales for the 2023 financial year
350.000 (350.000)
Subtract projected expenses for the 2023 fiscal year
Estimated total funding balance as of June 30, 2023
As of June 30, 2023, the funding balance will be available for scholarships
Estimated balance of unallocated funds as of June 30, 2023
Estimated sales for fiscal year 2024
270.000 (270.000)
Subtract projected expenses for the 2024 fiscal year
Estimated unallocated funding balance for fiscal year 2025 and future years
32
Harford County, MD Projected Unallocated Funding Balance, Watershed Management Fund Statement
Watershed Management Fund
Total financing balance on June 30, 2022
11.318.662
Estimated sales for the 2023 financial year
3.350.000 (5.748.662)
Subtract projected expenses for the 2023 fiscal year
Estimated total funding balance as of June 30, 2023
8.920.000
Minus: Limit fund balance bond yield
(920.000)
Estimated balance of unallocated funds as of June 30, 2023
8.000.000
Estimated sales for fiscal year 2024
3.360.000 (6.006.000)
Subtract projected expenses for the 2024 fiscal year
Estimated unallocated funding balance for fiscal year 2025 and future years
5.354.000
33
Harford County, MD Estimated balance of unspecified funds, tax increase, financing, debt service filing
TIF debt service fund
Total financing balance on June 30, 2022
2.813.986
Estimated sales for the 2023 financial year
1.915.000 (1.892.000)
Subtract projected expenses for the 2023 fiscal year
Estimated total funding balance as of June 30, 2023
2.836.986
Fund balance available for use as of June 30, 2023. Expected unallocated fund balance as of June 30, 2023
2.836.986
Estimated sales for fiscal year 2024
2.665.000 (2.665.000)
Subtract projected expenses for the 2024 fiscal year
Estimated unallocated funding balance for fiscal year 2025 and future years
2.836.986
34
Harford County, MD Water and Sewage Operating Fund Projected Unrestricted Net Position and Water and Sewage Debt Service Fund Statement
Operational Water and Wastewater Fund Debt Service Fund (1)
Total net assets as of June 30, 2022
511.747.863
Decrease in investments in capital goods after deducting the associated debt
(324.912.563) (124.386.096)
Restricted – Capital Items/Debt Service
Net Assets Redeemable as of June 30, 2022 Unlimited Net Positions
62.449.204
Projected sales for 2023
59.785.000 (58.922.380)
12.338.600 (12.338.600)
less projected expenses in 2023
Net Assets Redeemable as of June 30, 2023 Unlimited Net Positions
63.311.824
Estimated sales for fiscal year 2024
63.155.000 (79.815.000)
20.725.000 (20.725.000)
Subtract projected expenses for the 2024 fiscal year
Deductible net assets as of June 30, 2024 Unlimited net positions
46.651.824
(1) It is important to note that although budget policy defines the water and sanitation debt service fund as a separate account for administrative purposes, county financial reports treat it as part of the water and sanitation fund.
35