FY2023 Adopted Operating and Capital Budget

FY2023 Adopted Budget Fund Budgets

Consolidated Budget Overview

Consolidated 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 14, 2022. On May 17, 2022, the County Council voted in support of the budget proposed by the County Executive.

Short-Term Factors: Although the pandemic is still affecting people and business, the on-going effect to the County s budget and overall economy is minor. Frederick County continues to benefit from an overall robust economic environment. However, increasing inflation and supply chain disruptions were taken into consideration and some revenues were lowered from original projections.

KEY CHANGES

BY FUND TYPE: Provided below is an overview of changes to each fund category. More detail by fund can be found in the detail segment of the Fund Budget section. General Fund: The General Fund increased 10.4% to $792.1 million, resulting from strong revenue growth despite the economic impact of the pandemic. Property assessments are providing a steady growth for the County s property tax and new construction continues to bolster this revenue stream. Income tax continues to grow at higher than average rates and this has allowed for the adoption of a lower income tax rate for certain residents. Building/permit fees and recordation revenue is also budgeted higher based on revenue collected for the past couple of years. However, a conservative approach was taken since building growth is expected to slow down, as a result of supply chain issues, inflation, and higher borrowing costs. The budgeted growth allowed the County to make a record investment in education and implement new regulations regarding body cameras for the Sheriff s Department and the reciprocal needs in the State s Attorney. The County was also able to fund many divisional requests as outlined in this document, and implement the second phase of the recent compensation and classification study for general employees of the County. Special Revenue Funds: The Agricultural Preservation Fund is budgeted at a 52.4% increase. This is mostly driven by an increase in the dedicated recordation tax passed by the County Council that became effective in the fall of 2020, and the timing of program cycles that fluctuate year to year. The additional revenue will support the expansion of preservation programs. The Grants Fund increased $3.0 million or 9.4%. The increase is mostly attributable to salary increases. However, the General Fund provided extra support for senior meal programs, transit vehicle replacement, additional funding for the Transit-Plus program, and matching funds for a possible Fire/Rescue grant.

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