FY2021 Adopted Budget

FY2021Adopted Budget Budget Overview

The Recordation Tax rate has changed to $7/$500 of consideration, effective October 1, 2020. This is a $1 increase over the current rate. One hundred percent of the $1 increase is dedicated to Agricultural Preservation and is reflected in that fund. Other funds that have recordation tax are not affected by this change. However, overall projections are being held near previous levels. Fees and Charges are a large component of the overall budget but is the main revenue source for the Water and Sewer Fund. The County Council approved a sewer rate increase effective on September 1, 2019. The increase will occur for each fiscal year through FY 2024. Other fees and charges have been updated as needed. All other County revenue accounts are held at or near prior year levels due to the uncertainty associated with the pandemic. As stated previously, many of these revenue sources were also budgeted conservatively in prior years. Therefore, a budgeted decrease at this time is not deemed necessary. Expenses: General Fund expenses continue to be well managed. A long term trend of year-end budget savings across all Divisions creates fund balance that can be reliably reprogrammed in successive budgets. Cost pressure on typical base budget drivers such as health insurance inflation, pension contributions, and energy costs are all well within normal and expected ranges and are being managed.

The County population is continuing to grow which increases the needs for services but workload pressure on County Divisions are also increasing in response to citizens requesting additional services. In addition to population growth, there are changing demographics. Within two years it is estimated that Frederick County will be home to more senior residents (age 60 and above) than school age children. This is just one of many examples where the County Executive faced the challenge of competing priorities and has decided to invest based on community input and the goals of long term plans and commitments.

Priorities and Issues: To prepare the proposed budget, the County Executive relied on extensive public outreach and the strategic priorities established very early on in this DGPLQLVWUDWLRQ 7KURXJKRXW WKLV \HDU¶V EXGJHW GHYHORSPHQW SURFHVV , the public was engaged and continuously encouraged to offer input and guidance to the County Executive. Multiple public hearings, surveys and live broadcast of budget meetings, workshops and presentations created transparency and built public trust in the budget process. In the end, the pandemic shaped the outcome of the budget and the County Executive proposed an ³HVVHQWLDO´ EXGJHW WR DGGUHVV WKH OLPLWDWLRQ RQ IXWXUH LQFRPH VWUHDPV ZKLOH PDLQWDLQLQJ &RXQW\ VHUYLFHV Highlighted Budget Enhancements and the Strategic Priorities met (unless stated, the enhancements are reflected in the General Fund): Budget Enhancement Strategic Priorities $14.1 million additional to the Board of Education ($7.0 million above maintenance of effort) Education; Growth $1.4 million additional to Frederick Community College Education; Growth $1.6 million for additional staffing for a new fire station Community Needs; Growth Over $468 thousand additional to the Sheriff Division for school resource officers to meet mandates and increasing request for services Community Needs; Growth

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