Harford County, MD Budget and Finance

The term of "County" or "County government" shall include all agencies and their officers, agents, and employees who receive or disburse County funds.

The term "County funds" shall mean any monies appropriated or approved by the Council or to which the County may at any time have legal or equitable title.

The term "current expense budget" shall mean the plan of the County to receive and expend funds for charges incurred for operation, maintenance, interest, and other charges for the ensuing fiscal year.

(d)

The term "capital project" shall mean:

(1)

Any physical public betterment or improvement and any preliminary studies and surveys relative thereto;

(2)

The acquisition of property of a permanent nature for public use; and

(3)

The purchase of equipment for any public betterment or improvement when first constructed.

(e)

The term "capital budget" shall mean the plan of the County to receive and expend funds for capital projects during the first fiscal year included in the capital program.

(f)

The term "capital program" shall mean the plan of the County to receive and expend funds for capital projects during the fiscal year covered by the capital budget and the next succeeding five fiscal years thereafter.

Section 503 Comprehensive scope of budget.

[Amended by Bill No. 78-62]

The County budget shall consist of the current expense budget, the capital budget and capital program, and the budget message. It shall represent a complete financial plan for the County reflecting all receipts and disbursements from all sources, including all revenues, all expenditures, and the surplus or deficit in the general fund and all special funds of the County government.

Section 504 Formulation of current expense budget.

Not later than four months prior to the beginning of each fiscal year, the head of each agency which receives or disburses County funds shall furnish to the County Executive annual work programs setting forth the nature, volume, cost, and other factors concerning the work to be performed and the estimates of the revenues and expenditures of their several operations for that fiscal year. Estimated revenues shall be detailed as to source, and estimated expenditures as to program or project. All such estimates shall be submitted in such form and with such other supporting data as the County Executive may request. The County Executive may amend the budget proposals, except for the budget request of the Legislative Branch and any County Board of Appeals established pursuant to Article 25A of the Annotated Code of Maryland, and shall cause to be prepared the County budget as set forth in Sections 506, 507, and 508 of this Charter.

Section 505 Formulation of capital budget and capital program.

At such time as the County Executive may direct, each agency which receives or disburses County funds shall submit to the County Executive an itemized list of the capital projects which each agency proposes to undertake in the ensuing fiscal year and the next succeeding five fiscal years thereafter. The County Executive may amend the capital budget and capital program proposals and shall cause to be prepared the County budget as set forth in Sections 506, 507, and 508 of this Charter.

Section 506 Contents of the current expense budget.

The proposed current expense budget shall contain the following information:

(1)

A statement of all revenue estimated to be received by the County during the ensuing fiscal year, classified to show the receipts by funds and sources of income;

(2)

A statement of debt service requirements for the ensuing fiscal year;

(3)

A statement of the estimated cash surplus, if any, available for expenditure during the ensuing fiscal year, and any estimated deficit in any fund required to be made up in the ensuing fiscal year;

(4)

An estimate of the several amounts which the County Executive deems necessary for conducting the business of the County to be financed from and not to exceed estimated revenue for the ensuing fiscal year;

(5)

A statement of the bonded and other indebtedness of the County government and its agencies, including self-liquidating and special taxing district debt and contingent liabilities;

(6)

A statement of the proposed contingency reserves, all of which shall not exceed 3% of the general fund and of any other fund;

(7)

A comparative statement of the receipts, amounts budgeted, and actual expenditures for the last completed fiscal year, the estimated receipts and expenditures of the currently ending fiscal year, and the expenditures recommended by the County Executive for the ensuing fiscal year for each program or project which shall be classified by agency, character, and object; and

(8)

Any other material which the County Executive may deem advisable or the Council may require.

Section 507 Contents of the capital budget and capital program.

The proposed capital budget and capital program shall be arranged to set forth clearly the plan of proposed capital projects to be undertaken in the ensuing fiscal year and in each of the next five fiscal years, and also the proposed means of financing the same. The capital budget shall include a statement of the receipts anticipated during the ensuing fiscal year from all borrowing and from other sources for capital projects.

Section 508 Contents of the budget message.

The budget message shall contain supporting summary tables and shall explain the proposed current expense budget and capital program both in fiscal terms and in terms of work to be done. It shall outline the proposed financial policies of the County for the ensuing fiscal year and describe the important features of the current expense budget. It shall indicate any major changes in financial policies and in expenditures, appropriations, and revenues as compared with the fiscal year currently ending, and shall set forth the reasons for such changes.

Section 509 Submission of the County budget.

[Amended by Bill No. 12-30]

Not later than April 15 of each fiscal year, the County Executive shall submit to the Council the proposed County budget for that fiscal year.

Section 510 Filing of proposed budget.

[Amended by Bill No. 96-37]

The proposed County budget shall be filed with the Council Administrator and copies thereof shall be made available to the public upon request.

Section 511 Public budget hearings.

[Amended by Bill Nos. 96-37; 12-29]

Upon receipt of the proposed County Budget, the Council Administrator shall cause to be published in at least one newspaper widely circulated in the County in accordance with the provisions of Section 812, a notice of the place and time of at least two public hearings on the budget by the Council. The Council may hold such other preliminary hearings on the budget for the purpose of obtaining information as it may determine, but no action shall be taken by the Council on the budget except in public session and after the public budget hearings prescribed in this section.

Section 512 Action on the budget by the Council.

After the public hearings, the Council may decrease or delete any items in the budget except those required by the laws of this state or of this County, and except any provisions for debt service on obligations then outstanding or for estimated cash deficits. The Council shall have no power to change the form of the budget as submitted by the County Executive, or to alter the revenue estimates except to correct mathematical errors, or to increase any expenditure recommended by the County Executive for current expense or capital purposes.

The adoption of the current expense budget and the capital budget shall be by the affirmative vote of at least four members of the Council by a law to be known as the Annual Budget and Appropriation Ordinance. Any borrowing to finance capital projects must be authorized by an existing law of the General Assembly of Maryland or by a law of the Council adopted in accordance with this Charter.

The Annual Budget and Appropriation Ordinance shall be adopted by the Council not later than 15 calendar days prior to the beginning of each fiscal year, and if the Council fails to do so, the proposed current expense budget, as submitted by the County Executive and as may have been amended by the Council shall stand adopted, and funds for the expenditures proposed in the current expense budget shall stand appropriated as fully and to the same extent as if favorable actions thereon had been taken by the Council.

[Amended by Bill Nos. 78-25; 12-30]

Section 513 Reproduction of the budget.

The budget as adopted shall be reproduced and made available to the public upon request.

Section 514 Effective date of the Budget.

The adopted budget shall take effect on the first day of the fiscal year to which it applies.

Section 515 Tax levy and balanced budget.

[Amended by Bill No. 78-62]

When the County budget shall have been finally adopted in the Annual Budget and Appropriation Ordinance, the Council shall thereupon levy and cause to be raised the amount of taxes required by the budget in the manner provided by law so that the budget shall be balanced as to proposed income and expenditures.

Section 516 Transfer of appropriations.

Transfer of appropriations between general classifications of expenditures in the current expense budget within the same agency and within the same fund may be authorized by the County Executive. Transfers between agencies of the County government and within the same fund of the current expense budget may be made only during the last quarter of the fiscal year, and then only on the recommendation of the County Executive and with the approval of the Council. Inter-project transfers of appropriations between capital projects in the capital budget may be authorized by legislative act of the Council upon request of the County Executive, but no new project shall be created nor any abandoned except in accordance with Section 521 of this Charter. Nothing contained herein shall be construed to prevent the Council, upon request of the County Executive, from providing by law for inter-fund cash borrowings to meet temporary cash requirements nor to prevent reimbursements among funds for goods supplied or services rendered.

Section 517 Supplementary appropriations.

[Amended by Bill No. 88-37]

During any fiscal year, the Council, upon the recommendation of the County Executive, may, by law, make additional or supplementary appropriations from unexpended and unencumbered funds set aside for contingencies in the County budget, from revenues received from anticipated sources but in excess of budget estimates therefor, or from revenues received from sources not anticipated in the budget, provided that the Treasurer shall first certify in writing that such funds are available for such appropriation. No supplemental appropriation shall exceed the amount of funds so certified.

Section 518 Emergency appropriations.

[Amended by Bill No. 80-52]

To meet a public emergency affecting life, health, or property, the Council may, by law, upon the recommendation of the County Executive, make emergency appropriations from contingent funds in the budget, from revenue received from anticipated sources but in excess of the budget estimates therefor, or from revenues received from sources not anticipated in the budget for the current fiscal year. To the extent that there may be no available unappropriated revenues to meet such emergency appropriations, the Council may, by law, authorize the issuance of emergency notes which may be renewed from time to time. Such notes and renewals shall be paid not later than the last day of the fiscal year next succeeding that in which the emergency appropriation was made.

Revenues from grant allocations which were unanticipated in any current fiscal year may be appropriated by legislative act of the Council upon request of the County Executive. The appropriation shall be made to the proper grant account established for the revenues and any surplus grant funds remaining at the end of the fiscal year shall be carried over to the following fiscal year without the necessity of further action by the Council.

Section 519 Unexpended appropriations.

Unless otherwise provided by law, all unexpended and unencumbered appropriations in the current expense budget remaining at the end of the fiscal year shall revert into the County general fund. No appropriation for a capital project in the capital budget shall lapse until the purpose for which the appropriation was made shall have been accomplished or abandoned; provided that any capital project shall stand abandoned if three fiscal years elapse without any expenditure from or encumbrance of the appropriation made therefor. The balances remaining to the credit of the completed or abandoned capital projects shall be available for appropriation in subsequent capital budgets.

Section 520 Limitations on expenditures.

[Amended by Bill No. 80-51]

No expenditures of County funds shall be made or authorized in excess of the available unencumbered appropriations therefor. Nothing in this Charter shall prevent the making of contracts providing for the payment of funds at a time beyond the fiscal year in which such contracts are made, provided the nature of such transactions reasonably requires the making of such contracts. Any contract, lease, or other obligation in excess of three thousand dollars requiring the payment of funds from the appropriations of a later fiscal year shall be authorized by legislative act.

Section 521 Restrictions on capital projects; amendment to capital budget after adoption of budget.

[Amended by Bill Nos. 78-26; 88-37]

No obligations of the County shall be authorized in any fiscal year for or on account of any capital project not included in the County budget as finally adopted for such year, provided that upon receipt of a recommendation in writing from the County Executive, the Council may after public hearing and with the affirmative vote of at least five of its members amend the County budget. The Council may increase the total amount of appropriations for a County capital budget only if the increased appropriations are to be funded from revenues received from anticipated sources but in excess of budget estimates therefor or from revenues received from sources not anticipated in the budget.

Section 522 Enterprise accounting.

Separate budgets for each utility shall be included in the current expense and capital budget prescribed in this Charter which shall include statements of revenue and expense for the required fiscal years. The accounting system of each utility shall conform to generally accepted principles of utility accounting and shall be kept on an accrual basis.

Section 523 Composition and limitation upon county funds.

All revenues and receipts from utility assessments; from special services or benefit charges; from special taxes or assessments imposed upon special taxing areas for special or particular services, purposes or benefits; from funds held by the County as trustees or agent; or from bond proceeds, shall be paid into and appropriated from special funds created therefor. All other revenues and receipts of the County from taxes, grants, state revenues, and other receipts shall be paid into and appropriated from the general fund which shall be the primary fund for the financing of current expenses for the conduct of County business.

No general fund revenues or receipts shall be dedicated to, expended for, or used to supplement appropriations from a special fund except as a loan to such special fund as authorized by Section 516 of this Charter.

Upon request of the County Executive, the Council may, by the Annual Budget and Appropriation Ordinance, or by other legislative act, provide for the establishment of working capital or revolving funds for the financing of central stores, equipment pools, or other services common to the agencies of the County.

(d)

Notwithstanding other provisions of this section, the Council may establish a reserve fund for permanent public improvements into which there may be paid by the Annual Budget and Appropriation Ordinance cash surpluses not otherwise appropriated or toward the financing of which taxes or other sources of revenues may be dedicated.

Section 524 Indebtedness.

[Amended by Bill No. 96-36]

The County may incur debt. No indebtedness for a term of one year or greater shall be incurred by the County to meet current operating expenses. All County indebtedness for a term in excess of one year shall become due not later than 30 years after the date of issuance, except debt incurred to finance water, sewer and wastewater facilities, which shall become due not later than 40 years after the date of issuance.

If at any time the Council shall have failed to appropriate and to make available sufficient funds to provide for the timely payment of the interest and principal then due upon all County indebtedness, it shall be the duty of the Treasurer to pay, or to make available for payment, to the holders of such indebtedness from the first revenues thereafter received applicable to the general funds of the County, a sum equal to such interest and principal.