FY2023 Adopted Operating and Capital Budget

FY2023 Adopted Budget Budget and Finance Policy Committed General Fund Balance Policy

Section 2 7 1(a) (2) of th e Frederick County, Marylan d Code of Ordinances provides for the County to maintain a committed General Fun d balanc e equal to seve n percent of General Fun d expenditure s and transfers to the Boar d of Education an d Frederick Community College on a budgetary basis .

Investment Policy The County has a written investment policy that ensures that the investment progra m i s strictl y adhere d t o and the securit y of County investments is maximized . Cash held temporarily idle during the year E\ )UHGHULFN &RXQW\¶V SULPDU\ government , was investe d i n certificate s of deposits, obligations of federa l government agencie s and the State of Marylan d Local Government Investment Pool , all of which are full y collateralized b y United State s Government obligation s for period s ranging fro m one day to three years. The County also has a delivered collateral policy. General Fund Revenue Surplus Appropriation Policy Provides management wit h the flexibility to appropriate financial resources fro m the current fiscal year or projected surplus General Fund revenues in the current or immediat e subsequent fiscal year budget. This policy requires the annual review of propert y tax and income tax revenues . If a surplus is determined , those funds may b e appropriated to offset nonrecurrin g expenditures .

Debt Policy The debt polic y sets forth comprehensiv e guidelines fo r th e financing o f capita l expenditures . The polic y provide s parameters for issuin g deb t and managin g outstandin g debt . Th e policy provides guidance t o decision makers regardin g th e timing and purpose for which debt may be issued , what types and amounts of debt are permissible , the metho d of sale that may be used an d the deb t structuring practices that may be used. The County recognizes that adherence t o a debt polic y helps ensure that it maintain s a soun d debt positio n and that credit qualit y i s protected .

Debt Affordability Policy In orde r to establish a safe level of debt the County commissioned a study which facilitated the establishmen t of a Debt Affordability limit and was recently reviewe d an d updated i n 201 7 by an outside financial consultant . This limit assists i n th e establishment of sound fiscal management policies fo r the County , an d helps t o ensur e th e PDLQWHQDQFH RU SRVVLEOH LPSURYHPHQW RI WKH &RXQW\¶V FUHGLW UDWLQJ 7KH &RXQW\¶V ERQG UDWLQJ KDV EHHQ UHYLHZHG E\ 6WDQGDUG DQG 3RRU¶V )LWFK DQG 0RRG\¶V ,QYHVWRUV 6HUYLF e , Inc., which resulte d in sustaining AAA , AAA , Aaa rating s respectively . The Debt Affordabilit y Limit s Study recommended the us e of Debt Affordability standards , and the following standards are being used: General Fun d G.O . debt service, a s a percentage of General Fun d revenue , shoul d b e limited t o 9.0%

General Fun d debt , as a percent of assessed valuation, should b e limite d to 2.0% General Fun d debt , as a percent of General Fun d Revenue, should be limite d to 80.0% Total G.O. debt service , as a percent of General Fund Revenue, should be limited to 17.2%

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