FY2026 Proposed Operating and Capital Budgets

FY2026 Proposed Budget Fund Budgets

Agricultural Preservation

Agricultural Preservation During FY24, a new Office of Agriculture was established, and the functions of agriculture preservation were transferred to the office from the Division of Planning and Permitting. The Agriculture Preservation Fund administers a variety of local, state, and federal land preservation programs focused on protecting agricultural lands. Current programs are Conservation Reserve Enhancement Program, Critical Farms, Installment Purchase, Maryland Agricultural Preservation Foundation, and Rural Legacy. The primary funding sources for the agricultural preservation programs are derived from dedicated County recordation tax, State grants, a portion of the State Agricultural Transfer Tax, and contributions from the County’s general fund. Through legislation, the County has dedicated 25.0% of recordation tax revenues toward agricultural land preservation in the County. Budget Highlights In FY26, Frederick County, Maryland, maintains a recordation tax rate of $7.00 per $500 of consideration on instruments transferring property interests. This tax remains a vital funding source for key county initiatives, including agricultural land preservation. Expense fluctuations are primarily driven by the Installment Purchase Program, which varies depending on landowner payment preferences (lump sum vs. bond payment), the number of settlements finalized during the fiscal year, and the terms and maturity of previous agreements. Despite ongoing concerns over housing market unpredictability, recordation tax revenue projections have seen a slight increase for FY26, ensuring continued support for the County Executive’s ongoing initiatives. An independent study of salary and benefits was conducted. As a result, the budget reflects a several year phase in to adjust the salaries of certain positions to reflect current market rates, as well as adjustments to salary scales, position titles, and classifications. Changes in salaries and benefits based on contracts, individual benefit elections, tax laws, etc., are also included.

46