FY2022 Adopted Operating and Capital Budget

FY2022 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 15, 2021. On May 18, 2021, the County Council voted in support of the budget proposed by the County Executive.

Short Term Factors: Although the pandemic is still affecting many people and business, the on JRLQJ HIIHFW WR WKH &RXQW\¶V EXGJHW DQG RYHUDOO economy is minor )RU )< PRVW UHYHQXHV ZHUH KHOG IODW RU ORZHUHG WR SULRU \HDU¶V DFWXDOV 7KH EXGJHWHG GHFOLQH howeve U GLG QRW PDWHULDOL]H LQ WKH &RXQW\¶V PDLQ UHYHQXH VRXUFHV SURSHUW\ tax and income tax. This has allowed FY2022 WR ERXQFH EDFN DQG SURYLGH D WZR WR WKUHH \HDU ³FDWFK u S´ DV LW UHODWHV WR WKH EXGJHW Low interest rates for borrowing funds continue and this has compelled citizens to refinance existing homes or purchase new homes, both that bolster recordation tax.

KEY CHANGES

BY FUND TYPE: Provided below is an overview of changes to each fund category. More detail ³ by fund ´ can be found in the detail segment of the Fund Budget section. General Fund: The General Fund increased 7.7% to $717.2 million, resulting from strong revenue growth despite the economic impact of the SDQGHPLF 7KLV LQFUHDVH UHSUHVHQWV D EXGJHWDU\ ³FDWFK XS´ IURP WKH SULRU \HDU ZKHQ UHYHQXH ZDV EXGJHWHG UHODWLYHO\ flat because of the unknown impacts related to the pandemic. This growth allowed the County to implement the first phase of the recent compensation and classification study for general employees of the County. It also permitted the County Executive to fund divisional requests that were unable to be funded in the FY2021 budget. Special Revenue Funds: The Agricultural Preservation Fund is budgeted at a 31.8% 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 timing of program cycles that fluctuate year to year. The additional revenue will support the expansion of preservation programs. Housing Initiatives Fund increased $1.2 million or 26.0%. The increase stems from additional recordation tax and payment lieu revenues. These sources are driven by the housing market that continues to grow in Frederick County. This will help provide additional funding for housing initiative programs. The Parks Acquisition/Development, Impact Fees/School Mitigation, and School Construction funds saw decreases over the prior year. These funds are directly related to the funding of capital projects and fluctuate year to year based on capital projects in the capital budget.

All other special revenue funds are consistent with the FY2021 adopted budget.

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