FY2021 Adopted Budget

Jan H. Gardner County Executive

FREDERICK COUNTY GOVERNMENT OFFICE OF THE COUNTY EXECUTIVE

Rick Harcum, Chief Administrative Officer

Budget Office

Kelly Weaver, Budget Director

Budget Overview This budget reflects continuous operations and addresses the on-going growth and needs of County residents. It was adopted by way of a continuous public input process and a rigorous review and approval process that ensures Frederick County is one of the best places to live, work, and raise a family. Many competing needs were thoughtfully considered and prioritized by the County Executive. The Strategic Framework provided guidance to make decisions in an open and transparent process leading to this budget being proposed on April 15, 2020. On May 19, 2020, the County Council voted in support of the budget proposed by the County Executive, except to delay the study phase of the Courthouse Capacity Improvements Project to FY2022. Short-Term Factors:

The immediate factor affecting the budget is the worldwide pandemic, COVID-19. Revenue projections were adjusted based on Maryland operating under a Stay at Home Order for approximately six weeks and the lingering effects on the economy and personal income as businesses re-open slowly and at lower capacities. However, conservative budgeting in the past has allowed the County to budget an increase over ODVW \HDU¶V DGRSWHG EXGJHW At this time, the County is only reducing service levels based on restrictions and guidelines from the State, health officials, and local officials as it relates to public health during the pandemic. The FY2021 budget assumes an operational organization and is ready to respond as needed when the restrictions and guidelines are updated. Revenue:

3URSHUW\ DQG ,QFRPH 7D[HV DUH WKH &RXQW\¶V PDLQ UHYHQXH VRXUFH s. Although no changes to these tax rates are adopted in this budget, the revenue associated with these taxes are budgeted at a 4.7% increase. Housing growth and assessments continue to increase at a moderate pace of 5.2%. Income tax revenue of $236.2 million is the second largest revenue stream (35%) to the County budget. Due to the pandemic, the County is anticipating a decline in Income Tax revenue over projected FY2020. However, due to conservative budgeting in the past, the budget-to-budget comparison is still an increase.

39