harford county, maryland office of the county...

HARFORD COUNTY, MARYLAND Office of the County Auditor

410-638-3161 * 212 South Bond Street * Room 219 * Bel Air, Maryland 21014 * www.harfordcountymd.gov/auditor

FISCAL IMPACT NOTE

May 2017 This bill impacts all Harford County departments and organizations that receive funding from the County. Proposed Revenues are approximately $672 million and Proposed Expenditures are approximately $692 million.

Bill Number: 17-007, As Amended Harford County Budget for Fiscal Year 2018 Sponsor: Council President Slutzky at the request of the County Executive

Summary of Legislation THE ANNUAL BUDGET AND APPROPRIATION ORDINANCE OF HARFORD COUNTY, MARYLAND, to adopt the County Budget, consisting of the Current Expense Budget for the fiscal year ending June 30, 2018, the Capital Budget for the fiscal year ending June 30, 2018, the Special Purpose Budgets for the fiscal year ending June 30, 2018,

SUMMARY OF RECOMMENDATIONS

• Other Post-Employment Benefits are not budgeted. We recommend the Administration include OPEB in the budget ordinance. (See pages 4 and 54) Remains from prior year.

• We strongly recommend that the schools prepare a zero-based budget to demonstrate the specific programs, services and staffing levels that are needed. (See page 41) Remains from prior year.

• We encourage School and County officials to continue to take steps towards identifying and implementing shared efficiency improvements. (See page 41) Remains from prior year.

• HCPS, Library and County officials should consider including technology refresh costs in the operating budget, rather than in the capital budget. (See page 41) Remains from the prior year.

• County Officials should consider if the ratio of competitive grants to non-competitive contributions represents the ideal use of Hotel Occupancy Tax revenue. (See page 50)

2016 2017 2018FY Actual FY Adopted FY Proposed ChangeRevenues $ 626,141,762 $ 619,135,800 $ 651,671,600 $ 32,535,800 5.3%Expenditures 642,256,544 655,121,900 692,087,600 36,965,700 5.6%Change in Fund Balance $ (16,114,782) $ (17,993,050) $ (20,208,000) $ (2,214,950) 12.3%OPEB Adjust. (3,218,987) (5,557,000) 0.0%Personnel 1541.35 1489.35 1486.35 (3.00) -0.2%

Percent Change

Bill Number: 17-007, As Amended of 54

Office of the County Auditor Report Number 2017-L-02 Inquiries may be directed to (410)638-3161 or [email protected]

and the Grants Budget for the fiscal year ending June 30, 2018; and to appropriate funds for all expenditures for the fiscal year beginning July 1, 2017, and ending June 30, 2018, as hereinafter indicated.

The following recommendations from FY2017 have been addressed and removed from our analysis.

• The County should consider whether efficiencies may be gained from combining the resources of the various facilities maintenance groups. • The County should consider whether efficiencies may be gained from combining the resources of the various Engineering and Capital Project Management groups. • We recommend funding for technology be prioritized in FY2018 to facilitate compliance with State PARCC testing mandates that become effective in 2018. (Combined above) • Harford County budget ordinances should specify any limitations on the use of County funds by the Health Department and include capital projects for the Health Department where appropriate. See departmental summaries for more detail.



TABLE OF CONTENTS SUMMARY OF RECOMMENDATIONS ..................................................... 1 FISCAL ANALYSIS OVERVIEW .................................................................. 4 OFFICE OF THE COUNTY EXECUTIVE ................................................ 10 DEPARTMENT OF ADMINISTRATION ................................................ 11 PROCUREMENT ............................................................................................ 13 TREASURY ...................................................................................................... 15 LAW DEPARTMENT ................................................................................... 16 PLANNING AND ZONING .......................................................................... 17 HUMAN RESOURCES .................................................................................. 18 COMMUNITY SERVICES ............................................................................ 19 HANDICAPPED CARE CENTERS ............................................................ 20 GOVERNMENT AND COMMUNITY RELATIONS ............................. 20 HEALTH DEPARTMENT............................................................................ 21 HOUSING AND COMMUNITY DEVELOPMENT ................................ 22 INFORMATION AND COMMUNICATIONS TECHNOLOGY .......... 23 SHERIFF’S OFFICE ....................................................................................... 25 EMERGENCY SERVICES ............................................................................ 26 INSPECTIONS, LICENSES AND PERMITS .......................................... 28 DEPARTMENT OF PUBLIC WORKS ...................................................... 29 COUNTY COUNCIL ....................................................................................... 36 JUDICIAL .......................................................................................................... 37 STATE’S ATTORNEY ................................................................................... 38 BOARD OF ELECTIONS .............................................................................. 39 BOARD OF EDUCATION ............................................................................ 40 HARFORD COMMUNITY COLLEGE ...................................................... 43 HARFORD COUNTY PUBLIC LIBRARY ................................................ 45 PARKS AND RECREATION ....................................................................... 46 CONSERVATION OF NATURAL RESOURCES ................................... 49 ECONOMIC DEVELOPMENT ................................................................... 50 HUMANE SOCIETY ...................................................................................... 51 INSURANCE .................................................................................................... 52 BENEFITS ........................................................................................................ 53



Additional Information Fiscal Analysis was prepared by Chrystal Brooks, County Auditor. Version: 2 – 5/19/17 Based on bill as amended 05/09/17

FISCAL ANALYSIS OVERVIEWThe proposed budget for fiscal year 2018 indicates that revenues will be 5% higher than the prior year. However, expenses will increase by 5.6%, requiring a larger contribution from the County’s Fund Balance (savings) than the prior year. Property values are projected to increase. With tax rates remaining the same, the expected taxes will increase. As in the prior year, the proposed budget includes post-employment health plan (PEHP) contributions; however, Other Post-Employment Benefits (OPEB) has not been included. Historically, OPEB costs have been “assigned” by the County Executive in the County’s year end Fund Balance and then added to the budget as a supplemental appropriation. Inclusion of the OPEB costs in the budget would aide in transparency and would better reflect the County’s cost of business. Exclusion of the OPEB costs means that the budget does not fully capture the future cost of current operations. For FY2017, the supplemental appropriations for OPEB totaled $3,218,987. The proposed budget includes a fund balance assignment of $5,557,000 for OPEB. The proposed budget includes merit wage increases of 4% for most County employees at a cost of approximately $2.8 million. Equivalent increases have been provided for employees of the Library System, State’s Attorney’s Office, EMS Foundation, Circuit Court and Sheriff’s Office civilian employees. Pay raises for Elections Officials, the State’s Attorney and the Sheriff are determined at the State level. The first phase-in of the Sheriff’s Office Pay Study will be implemented at a cost of $2.2 million. School funding dedicated to instructional salaries will increase by $5.0 million. Health Insurance costs continue to rise. The County has budgeted for 7% increases to the Blue Choice health plan and a 13% increase for the more expensive Triple Option plan. For the upcoming fiscal year, employees that are Maryland residents will be required to select the Blue Choice plan. Accordingly, for some departments, this change in benefit options will reduce insurance costs.



Throughout this document, the FY2017 budget figures represent the amended budget and any supplemental appropriations that were approved during the year. FY2018 amounts that have changed based on amendments to the proposed budget ordinance are shown in red font. Detailed analysis of each department follows in this report. Where appropriate, recommendations for further evaluation have been noted in the departmental summaries. Data used in the analysis was provided by the Office of Budget and Management Research and various Department Heads.

Revenue Changes We reviewed each revenue source in the proposed budget and noted that many had significant variances. The largest revenue sources are Property and Income taxes, so their increases of 3.4% and 2.8% respectively have the largest impacts. Additionally, 2018 will be the first year the Water and Sewer Asset Reinvestment Charges will be collected. Those charges represent an increase of $1.17 million, in addition to rate increases that will be implemented. Other items of note include: • Investment Income is projected to increase by $3.6 million within the Agricultural Preservation Fund because of T-strips that will mature to pay the balloon payments on prior purchases. • Hotel Tax has been projected at $325,000, increasing the Miscellaneous category. • Cable Franchise Fees (within Inspection and Permits) is $300,000 lower, reversing an increase in the prior year budget. A summary of the revenue changes is below.



Departmental Variances We reviewed each department’s proposed expenditures and noted that the departments in the table below have significantly different appropriations (more than 5% variance) proposed from the prior year. In some cases, these changes are related to reorganization. For example, Property Management costs have been moved from Procurement to Administration. Additionally, within Public Works (DPW), Solid Waste costs have been largely moved to Environmental Services. For departments with mainly salary costs, the 4% wage increase plus a few minor adjustments would also cause a department to be included in the list below.

Department FY2018 Budget Revenue % of Rev Total FY2017 Variance FY17 Var. % FY2017 Budget RevenueCapital Recovery 1,150,000$ 0.2% (1,056,000)$ -47.9% 2,206,000$ Inspection, Licenses and Permits 4,377,500$ 0.7% (276,200)$ -5.9% 4,653,700$ Property Tax Deductions (5,628,500)$ a -0.8% 64,000$ -1.1% (5,692,500)$ DPW - Stormwater Remediation 2,075,000$ a 0.3% -$ 0.0% 2,075,000$ Recordation Tax 18,000,000$ a 2.7% 200,000$ 1.1% 17,800,000$ DPW - Environmental Services Mgmt 8,844,100$ a 1.3% 199,800$ 2.3% 8,644,300$ Income Tax 219,000,000$ a 32.6% 6,000,000$ 2.8% 213,000,000$ Highways Users Tax 1,415,000$ 0.2% 45,000$ 3.3% 1,370,000$ Intra - County Transfers 6,060,000$ 0.9% 197,000$ 3.4% 5,863,000$ Real and Personal Property Taxes 307,910,000$ a 45.8% 10,256,500$ 3.4% 297,653,500$ Other Intergovernmental Revenue 12,628,103$ 1.9% 514,829$ 4.3% 12,113,274$ ProRata Share Transfer 189,707$ a 0.0% 9,739$ 5.4% 179,968$ Other Taxes 7,285,000$ 1.1% 419,500$ 6.1% 6,865,500$ Transfer Tax 8,000,000$ 1.2% 500,000$ 6.7% 7,500,000$ Special Tax/ Assessments 1,127,000$ a 0.2% 77,000$ 7.3% 1,050,000$ Fund Balance 20,208,000$ a 3.0% 2,214,950$ 12.3% 17,993,050$ Fines and Forfeitures 116,000$ 0.0% 16,700$ 16.8% 99,300$ Service Charges 4,849,750$ 0.7% 890,020$ 22.5% 3,959,730$ Miscellaneous 1,675,132$ a 0.2% 311,904$ 22.9% 1,363,228$ DPW - Water and Sewer 63,398,300$ a 9.4% 12,385,200$ 24.3% 51,013,100$ Investment Income 9,407,508$ 1.4% 3,939,758$ 72.1% 5,467,750$



Other items of note:

• Agricultural Preservation budget has increased, but the change is not significant when compared to other years when property purchases were planned. • The Humane Society will receive an increase of $50,000. • Paygo funding for Capital Projects and Debt Service has been increased substantially and the changes are reflected in a larger capital budget. • County Executive increased funds available to provide as grants. • ICT includes increases in hardware and software costs. • Judicial has added two positions (and benefit costs) to supplement the newly appointed judge. • Emergency Services has increased to accommodate County-run ambulances. Reasons for the other changes vary by department and will be discussed in further detail in the departmental summaries.

Department FY2018 Budget Appropriation % of Total FY2017 Variance FY17 Var. % FY2017 Budget AppropriationDPW - Solid Waste 5,151,690$ 0.7% (8,697,430)$ -62.8% a 13,849,120$ Procurement 9,531,030$ 1.4% (2,871,403)$ -23.2% 12,402,433$ DPW - Stormwater Remediation 2,791,941$ 0.4% (476,508)$ -14.6% a 3,268,449$ Economic Development 5,993,358$ 0.9% (516,518)$ -7.9% 6,509,876$ DPW - Construction Management 2,470,032$ 0.4% (179,881)$ -6.8% a 2,649,913$ Treasury 4,794,687$ 0.7% 239,395$ 5.3% 4,555,292$ Harford Community College 16,411,612$ 2.4% 850,000$ 5.5% 15,561,612$ Soil Conservation 483,199$ 0.1% 29,822$ 6.6% 453,377$ Humane Society 800,000$ 0.1% 50,000$ 6.7% 750,000$ Emergency Services 14,899,751$ 2.2% 1,148,207$ 8.3% 13,751,544$ Appropriations to Towns/ Governments 4,832,815$ 0.7% 403,747$ 9.1% 4,429,068$ Judicial 3,378,138$ 0.5% 317,119$ 10.4% 3,061,019$ County Executive Office 739,045$ 0.1% 77,810$ 11.8% 661,235$ Info. & Comm. Technology 8,320,490$ 1.2% 1,046,486$ 14.4% a 7,274,004$ Debt Service 92,919,525$ 13.4% 14,115,759$ 17.9% 78,803,766$ Paygo 22,153,587$ 3.2% 5,887,788$ 36.2% a 16,265,799$ Administration 10,398,735$ 1.5% 3,805,602$ 57.7% 6,593,133$ Insurance 1,083,030$ 0.2% 427,937$ 65.3% 655,093$ Pensions and OPEB 30,654,000$ 4.4% 13,524,665$ 79.0% a 17,129,335$ Ag Preservation 6,691,500$ 1.0% 3,288,800$ 96.7% 3,402,700$ DPW - Environmental Services Mgmt 9,758,242$ 1.4% 9,415,317$ 2745.6% a 342,925$



Capital Projects Capital projects are included within the budget analysis of the department responsible for leading each project. Prioritization of capital projects should be recommended by subject matter experts and approved by those in leadership. As a result, budget analysis of the capital projects is limited to general descriptions, current and prior appropriations and background information. The overall appropriateness of the Capital Improvement Program, including projected future funding, has not been assessed. A summary of the Capital Improvement Plan is in the Fiscal Impact Note for Resolution 008-17.

Debt Service

Debt service is projected to increase substantially in FY2018, largely related to Agricultural Preservation. Principal and Interest are paid from the following funds: General Fund – The County’s general fund includes projects for the Board of Education and Community College. The capital assets related to the debt remain on those entities financial statements. The General Fund also captures the debt related to general projects such as Libraries, Landfill, Sheriff and Emergency Services. Service Costs include the costs to issue new debt such as Legal reviews, Audit, and Financial Advisors.

2016 2017 2018Fund FY Actual FY Budget FY Budget ChangeGeneral Board of Education $ 31,014,737 $ 31,037,504 $ 31,826,225 $ 788,721 2.5%Community College 3,334,253 3,212,476 3,284,198 71,722 2.2%Solid Waste Services 1,883,496 1,766,582 1,664,439 (102,143) -5.8%Other General Fund Capital 14,242,171 15,863,358 16,095,813 232,455 1.5%Highways 933,057 1,008,086 1,012,250 4,164 0.4%Ag. Preservation 10,061,101 10,369,800 20,472,000 10,102,200 97.4%Stormwater Management - 96,500 263,000 166,500 172.5%Water & Sewer 13,580,834 14,350,000 16,532,600 2,182,600 15.2%TIF - Beech Creek 1,072,188 1,100,000 1,099,000 (1,000) -0.1%Total $ 76,121,837 $ 78,804,306 $ 92,249,525 $ 13,445,219 17.1%

Percent Change



Highways – Captures the debt service for all Highways related capital projects. This fund additionally includes some costs for fleet leases. This Debt Service account is restricted to projects that are eligible for Highways Fund use. Agricultural Preservation – As the County purchases development easements, it commits a series of payments to the property owner over 10 or 20 years. The annual payments owed to property owners are tracked in this debt service account. In FY2018 Agricultural Preservation debt service is expected to increase. In FY2018 many balloon payments will be due for the installment payments related to prior purchases. The amount due will be paid with Treasury strips that were purchased with coinciding maturity dates. Tax Increment Financing (TIF) – The County does not use other funds to pay TIF debt service. The Beechtree TIF project costs about $1,100,000 in interest and service costs each year. As the property values in the Beechtree district increase, the additional property tax is used to pay this debt service. When the tax increment is less than the debt service, a special tax is levied on those property owners to make up the shortfall. So far, in FY2017, the tax increment collected is $681,015 and the special tax is $273,000. Water & Sewer – Captures the debt service for all Water and Sewer related capital projects. This fund additionally includes some costs for fleet leases. This Debt Service account is restricted to projects that are eligible for the Water & Sewer Enterprise Fund use.



OFFICE OF THE COUNTY EXECUTIVE

Key Changes • Merit salary increases of 4% • One-time matching grants contributions of $70,000

Open Audit Issues: None

Additional Information Fiscal analysis prepared by: Brad DeLauder, Senior Auditor. Version: 2 – 4/19/17

Operating Budget The County Executive is the elected head of the Executive branch of the Harford County Government. He is responsible for seeing that the affairs of the Executive Branch are properly and efficiently administered. The County Executive recommends legislation to the County Council that he has deemed to be in the best interests of the County. The County Executive is supported in those roles by the Director of Administration. The County Executive’s office budget reflects increases related to salary and decreases in health benefits selection. The budget does not include OPEB costs; in FY2017, OPEB costs for the department were $4,056. The grants under the County Executive’s Office fund Shock Trauma ($10,000) and miscellaneous grants ($80,000). The miscellaneous grants item funds requests that are submitted directly to the County Executive throughout the year. Recipients of the funding are not yet known. For FY2018, one-time contributions from the County Executive’s Office will match State grants for the Hosanna School ($45,000) and the McComas Institute ($25,000).

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualOffice of the County Executive $ 739,045 $ 73,754 11.1% $ 665,291 $ 521,733 Unbudgeted OPEB Adj.: 4,056

Total $ 743,101 $ 77,810 11.7% $ 665,291 $ 521,733 Personnel 4 - 0.0% 4 4

Percent ChangeChange from FY2017



DEPARTMENT OF ADMINISTRATION

Key Changes

• Property Management moved to Facility and Operations • Merit salary increases of 4%

Open Audit Issues: 6

Additional Information Fiscal analysis prepared by: Sarah Self, Staff Auditor. Version: 2 – 4/27/17

Operating Budget The Department of Administration provides support services to all County government departments and agencies. Included in the Department of Administration are the following divisions: Director of Administration; Facilities and Operations; Efficiency and Innovation; Central Services; and Budget and Management Research. Property Management was transferred to Administration from Procurement. Each division's supervisor reports directly to the Director of Administration. The department’s budget reflects changes due to the Department’s organization. The budget changes also relate to salary and health benefits adjustments and merit salary increases, but does not include OPEB costs. In FY2017, OPEB costs for the department were $92,066. Director of Administration – The Director’s budget includes salaries for the Director and an Administrative Secretary. Other costs budgeted include the County’s dues for Maryland Association of Counties and the National Association of Counties. Contributions provided by the office will decline slightly from the prior year and include funds to pay impact fees for non-profit home construction and other unspecified recipients. Efficiency and Innovation –The division is responsible for studying the efficiency and economy of each agency and department and reporting those findings to the County Executive. The division’s budget has increased slightly to reflect salary and health benefit adjustments and a merit based salary increase.

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualOffice of the Director $ 617,723 $ (146,833) -19.2% $ 764,556 $ 444,223 Property Management 3,507,083 (232,721) -6.2% 3,739,804 3,434,167Efficiency and Innovation 262,097 6,255 2.4% 255,842 187,366 Facilities and Operations 4,829,983 365,240 8.2% 4,464,743 4,210,404Central Services 651,606 (1,137) -0.2% 652,743 616,772Budget and Management Research 530,243 (6,446) -1.2% 536,689 503,663Unbudgeted OPEB Adj.: 92,066

Total $ 10,490,801 $ 76,424 0.7% $ 10,414,377 $ 9,396,595 Personnel 50 1.0 2.0% 49 49




Property Management – The responsibilities of this division include: property acquisition, capital project review, property appraisals, and lease management for the County’s approximately 614 properties. The primary budget items include salary and health benefits for the three positions transferred from Procurement and the contractual services funds for space and real estate rentals, as well as the utility costs related to properties leased by the County. $120,000 of the Bel Air Parking garage maintenance charges have been moved to Facilities and Operations for a net decrease in Property Management expenses when compared to the prior year. The amounts budgeted for real estate are reasonable compared to prior years. Buffer amounts of $100,000 for Emergency/Unanticipated Relocations and $75,000 for Common Area Maintenance Fee Reconciliations have been included in the budget. This is an increase of $125,000 from the prior year’s budget. Based on information provided by management, Harford County will be leasing 132,523 sq. ft of space in the current year. Rental rates range from $3 to $155 per sq. ft.; the average cost will be $20.96 per sq. ft. which is 7.75% less than the prior year. Facilities and Operations – The division is responsible for maintenance of the County’s General Fund facilities and Parks and Recreation facilities, libraries and community centers. The Facilities and Operations budget increase is primarily due to the reallocation from Property Management of the annual costs for the Town of Bel Air Parking Garage and the County’s share of a lighting retrofit project at the garage, as well increased funds for equipment repair parts based on actual expense history. Central Services – As part of Facilities and Operations, Central Services is responsible for bulk mailings for the County, handling inter-office correspondence, and all incoming customer service calls from the County switchboard. A significant portion of the budget is allocated to “General Office Mailing”. This cost is also included in the individual department budgets because costs are charged to user departments by Central Services. Revenue projections include an appropriate adjustment for this Intra-Governmental Revenue. Budget and Management Research – The office is responsible for preparing and monitoring the annual operating and capital budgets. The Budget and Management Research budget increases are related to merit based salary increases and the inclusion of temporary salaries for a summer intern.



Capital Projects

The new Edgewood Library Roof Replacement project will provide funding to replace the roof of the Edgewood Library. The Underground & Aboveground Storage Tank Management, Facilities Repair Program, Infrastructure Efficiency Capital Investment, Courthouse Building Repairs, Agricultural Research and Exposition Center projects are on-going projects from previous years. The Facilities Master Plan Study is complete and funds are being reappropriated from that project. Funding will also be reduced for the Bel Air Parking Garage and Hosanna School projects. The Hosanna School will receive one-time matching grant funds from the County Executive’s Office.

PROCUREMENT

Project Number Description FY2018 Budget Total Cost Prior Appropriations Percent CompleteFund: General A134101 Bel Air Parking Garage (136,162) 593,838 730,000 A034102 Facilities Repair Program 3,250,000 25,062,301 19,812,301 79.1%A134104 Infrastructure Efficiency Capital Investment Projects 25,000 1,130,000 1,005,000 88.9%A144104 Underground & Aboveground Storage Tank Management 100,000 605,000 505,000 83.5%A134103 Countywide Facilities Master Plan Study (34,425) 1,915,575 1,950,000 101.8%A094102 Courthouse Building Repairs 2,000,000 7,034,900 5,034,900 71.6%NEW Edgewood Library Roof 221,400 221,400 - 0.0%A164103 Harford County Agricultural Research and Exposition Center 350,000 650,000 300,000 46.2%A144103 Hosanna School (18,138) 221,862 240,000 108.2%Total 5,757,675$ 37,434,876$ 29,577,201$ 79.0%

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualProcurement Operations $ 778,209 $ (34,472) -4.2% $ 812,681 $ 706,501 Fund: HighwaysFleet Operations 8,752,821 881,986 11.2% 7,870,835 7,035,353Unbudgeted OPEB Adj.: 10,261

Total $ 9,541,291 $ 857,775 9.9% $ 8,683,516 $ 7,741,854 Personnel 10 (3.0) -23.1% 13 16




Key Changes

• Property Management has been moved to Administration • Merit salary increases of 4% • Increased fuel budget due to cooperative agreement with HCPS



Operating Budget The Department of Procurement is responsible for obtaining supplies and services for the County and management of all County vehicles. The department’s budget reflects decreases related to the division of Property Management moving to the Department of Administration, as well as salary and health benefits adjustments, which do not include OPEB costs. In FY2017, OPEB costs for the department were $10,261. Three staff positions were moved with Property Management. Fleet Management is responsible for the maintenance and distribution of the County’s motor fleet, including the County’s motor fuel dispensing operation. While some departments continue to have vehicles assigned to them, the management of the fleet has been centralized within Procurement. The fleet consists of automobiles, light trucks, heavy equipment and lawn care items operated by Harford County’s Government, Sheriff’s Office, Community College and Public Library. The budget for Fleet Management has increased by 11%, primarily due to the increase in fuel for the new cooperative fuel agreement with Harford County Public Schools. The increase also reflects a projected 3% increase in parts and labor for First Vehicle Services, the contractor with whom fleet repairs are coordinated.

Capital Projects

Fleet Replacement provides funds for the replacement of essential vehicles and equipment used by the County. In FY2018, approximately $1.3 million will be bused to purchase 2 ambulances. The Fleet Maintenance Facility project provides funds for the engineering and design of a new Fleet Maintenance/Radio Shop Facility.

Project Number Description FY2018 Budget Total Cost Prior Appropriations Percent CompleteFleet ReplacementA124102 Fund: General 2,000,000 19,040,000 7,040,000$ 37.0%H124507 Fund: Highways 1,500,000 17,942,000 8,942,000 49.8%O126727 Fund: Water & Sewer 800,000 8,262,000 3,462,000 41.9%Fleet Maintenance FacilityA164102 Fund: General 117,000 1,632,000 150,000 9.2%New Fund: Highways 155,000 1,940,000 - 0.0%New Fund: Water & Sewer 30,000 530,000 150,000 28.3%Total 4,602,000$ 49,346,000$ 19,744,000$ 40.0%



TREASURY

Key Changes • Merit salary increases of 4% • Net reduction of one staff position



Operating Budget The Treasurer’s Office is responsible for general accounting and collection of revenues for the County. The Treasurer also prepares the County’s financial statements and coordinates activities related to investments and debt management. The department’s budget increase is primarily due to the inclusion of temporary salaries for seasonal help and two (2) full time Accounting Clerks. Due to staffing changes, the department has a net reduction of one (1) position. The budget also reflects increases due to merit salary and health benefits adjustments, but does not include OPEB costs. In FY2017, OPEB costs for the department were $84,185. Capital Projects

The debt service project allows for the collection of Recordation Tax and Transfer Tax in the Capital Projects Fund in accordance with State law. Recordation and Transfer Taxes may be used for the payment of Debt Service on education capital projects or as pay-as-you-go funding for education projects. In the past, the County has recorded the collection of Recordation and Transfer Taxes in an escrow account and then transferred the money to the General Fund to pay debt service. This project provides a more informative means to audit presentation.

2018 2017 2016FY Budget Amended Budget FY ActualFund: GeneralOffice of the Treasurer $ 737,079 $ 14,657 2.0% $ 722,422 $ 693,332 Bureau of Accounting 1,833,273 (13,976) -0.8% 1,847,249 1,693,294Bureau of Revenue Collections 941,645 135,288 16.8% 806,357 753,663Fund: Water & SewerWater and Sewer Accounting 1,282,690 19,241 1.5% 1,263,449 933,813

Unbudgeted OPEB Adj.: 84,185Total $ 4,878,872 $ 239,395 5.2% $ 4,639,477 $ 4,074,102 Personnel 41 (1.0) -2.4% 42 42


Project Number Description FY2018 Budget Total Cost Prior Appropriations Percent CompleteFund: General New Board of Education Debt Service 18 18,000,000$ 108,000,000$ -$ 0.0%



LAW DEPARTMENT

Key Changes

• Merit salary increases of 4% • Net budget decrease of $4,396



Operating Budget The Law Department is responsible for providing legal guidance and representation for the County’s Executive Branch Agencies. The County Attorney also advises outside agencies as directed by the County Executive. The Risk Management Division’s duties include managing insurance claims for property and vehicle damage, accidental occurrences and inventory control. The department’s budget reflects a net decrease due to salary, pension, and health benefits adjustments, but does not include OPEB costs. In FY2017, OPEB costs for the department were $54,107.

2018 2017 2016FY Budget Amended Budget FY ActualLegal Services $ 1,951,424 $ (58,503) -2.9% $ 2,009,927 $ 1,883,094 Risk Management 121,611 (18,217) -13.0% 139,828 224,271

Unbudgeted OPEB Adj.: 54,107Total $ 2,127,142 $ (22,613) -1.1% $ 2,149,755 $ 2,107,365 Personnel 15 - 0.0% 15 16




PLANNING AND ZONING

Key Changes • Merit salary increases of 4% • Net reduction of 1 position • Additional $1.5 million for agricultural preservation purchases • Decrease in State and Federal grants



Operating Budget The Department of Planning and Zoning (P&Z) is responsible for preparation, recommendation, and enforcement of plans and regulations affecting the physical development and growth of Harford County. In addition to development of the Master Plan and reviewing zoning requests, the department also administers the State-funded and County-funded Agricultural Preservation programs. Agricultural Preservation (Ag Pres) appropriations can vary drastically from year to year depending on the amount of property rights the County intends to acquire during the year. The program is funded by a portion of the transfer tax and funds are maintained in a restricted fund until needed. The FY2018 budget proposes $6.5 million in Ag Pres spending, which is a 98% increase from the previous year. Ag Preservation purchases require County Council approval and are made from a dedicated fund. If the Administration later determines that more purchases should be made, funding would be available in the restricted fund to support a supplemental appropriation. The remaining portion, $1.6 million, is allocated for tax credit reimbursements to the General and Highways Funds. P&Z anticipates receiving $170,444 in State and Federal grants to support regional transportation planning and the Chesapeake Bay Critical Area Management Program. The required County match for these programs is $22,786. The department’s budget reflects increases related to merit wage, salary and benefits adjustments, but does not include OPEB costs.

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualDirector $ 621,415 $ 23,689 4.0% $ 597,726 $ 456,936 Comprehensive Planning 1,151,574 (124,247) -9.7% 1,275,821 1,121,787Current Planning 1,852,811 (7,721) -0.4% 1,860,532 1,721,437Fund: Ag. Preservation - County 6,541,000 3,238,800 98.1% 3,302,200 300Fund: Ag Preservation - State 150,500 - 0.0% 150,500 36,212Unbudgeted OPEB Adj.: 79,160

Total $ 10,396,460 $ 3,209,681 44.7% $ 7,186,779 $ 3,336,672 Personnel 36 (1.0) -2.7% 37 38




In FY2017, OPEB costs for the department were $79,160. One vacant position was transferred to Department of Emergency Services and reclassified.

HUMAN RESOURCES

Key Changes

• 4% Wage increases


Additional Information Fiscal analysis prepared by: Chrystal Brooks, County Auditor. Version: 1 – 4/21/17

Operating Budget The department is responsible for the administrative functions related to recruiting and retaining employees for County departments. Human Resources is also responsible for benefits administration and personnel related compliance matters. The Department of Human Resources budget has remained flat, except for salary and benefit adjustments. It does not include OPEB costs, which were $14,140 in FY2017. The Department of Human Resources, additionally, manages the Special Pays accounts, which fund employee related costs that are not directly attributable to, or included in, each department’s budget. Examples of Special Pays are employee bonuses, service awards, retirement leave payouts, tuition reimbursements, training costs, and wellness programs. The budgeted amount for retirement and other payouts is an estimate; if all eligible employees (approximately 200) retired, the amount to be paid would be much higher than budgeted, approximately $6.8 million. In the past, the County’s actual retirement experience has been about 36 retirements per year. Additional amounts may be needed if there is a higher than normal number of separations. For the current fiscal year, to date, approximately $500,000 (of $692,500 budgeted) was paid out from these funds.

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualHuman Resources $ 903,985 $ 27,457 3.1% $ 876,528 $ 911,400 Unbudgeted OPEB Adj.: 14,140Personnel Matters - General Fund 1,003,250 - 0.0% 1,003,250 1,651,993Personnel Matters - Highways Fund 215,271 - 0.0% 215,271 124,778Personnel Matters - Water & Sewer Fund 204,535 - 0.0% 204,535 185,779

Total $ 2,341,181 $ 41,597 1.8% $ 2,299,584 $ 2,873,950 Personnel 8 - 0.0% 8 9




The Personnel Matters budget also includes funding for Post-Employment Health Plan (PEHP) costs. When employees have accrued more than 320 hours of annual leave, the amount in excess is paid to an account, in the employee’s name, for post-employment healthcare costs. The $305,000 for PEHP in the proposed budget accommodates these expenses. Current year expenses have been $240,917.

COMMUNITY SERVICES

Key Changes

• Merit salary increases of 4% • 13% decrease in grant funding



Operating Budget The Department of Community Services works with federal, state, local, and private agencies to coordinate programs and improve the quality and availability of human services to County citizens. Offices within the department include the Director’s Office, Office of Drug Control Policy and Office on Aging. Budget increases reflect the proposed merit salary increases, but do not include OPEB costs. In FY2017, OPEB costs for the department were $47,625. Community Services provides grants to organizations that provide services to the community and receives grants from other government agencies (State and Federal) to assist with those programs. Contributions to the Center for Excellence for Heroin Addiction have increased by $50,000. A number of organizations will receive larger Grant-In-Aid funding than the prior year. Community Services anticipates receiving Federal and State grants in the amount of $2,002,738 which is 13% lower than the previous year. These grants will require a County match of $368,200. The reduction in funding is primarily related to Office on Aging grants from the State.

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualDirector of Community Services $ 1,653,833 $ 6,004 0.4% $ 1,647,829 $ 1,499,512 Office of Drug Control Policy 1,115,733 25,890 2.4% 1,089,843 872,296Office on Aging 2,089,941 49,137 2.4% 2,040,804 1,737,472Unbudgeted OPEB Adj.: 47,625

Total $ 4,907,132 $ 128,656 2.7% $ 4,778,476 $ 4,109,280 Personnel 25 - 0.0% 25 26




HANDICAPPED CARE CENTERS

Key Changes: None



Operating Budget Harford County funds service to adults with disabilities through the Harford Center and the ARC of Northern Chesapeake Region. The proposed funding for both organizations remains unchanged from the prior year. The Harford Center specializes in providing adult day programs to help develop vocations skills for its clients and recently opened a second site to serve additional community members. The ARC also develops vocational skills, but additionally provides funding for residential community living arrangements, family support services, foster care, adoption, jobs and transportation, as appropriate.

GOVERNMENT AND COMMUNITY RELATIONS

Key Changes

• Merit salary increases of 4% • Overall budget decrease due to staff turnover

Operating Budget The Office of Government and Community Relations was created by Executive Order 14-05. The Office is responsible for the coordination of county boards, agencies and organizations regarding the application of laws and policies. The Office works to coordinate initiatives which involve federal, state, schools and

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualHarford Center $ 553,036 $ - 0.0% $ 553,036 $ 693,036 ARC Northern Chesapeake Region 1,745,694 - 0.0% 1,745,694 1,745,694Total $ 2,298,730 $ - 0.0% $ 2,298,730 $ 2,438,730


2018 2017 2016Fund: General FY Budget Amended Budget FY ActualGovernment and Community Relations $ 569,213 $ (44,708) -7.3% $ 613,921 $ 473,868 Citizen Affairs and Agricultural Services 586,235 (5,377) -0.9% 591,612 320,413Unbudgeted OPEB Adj.: 3,601

Total $ 1,159,049 $ (46,484) -3.9% $ 1,205,533 $ 794,281 Personnel 6 - 0.0% 6 4






other local jurisdictions, with an emphasis on promoting agricultural and educational economic development opportunities. Per Executive Order 16-03, the division of Citizen Affairs and Agricultural Services was transferred to this Office from the Department of Administration in FY2017. The division is responsible for the coordination and oversight of the investigation and resolution of citizen issues regarding governmental policies, laws and programs. In addition, the division serves as a liaison between the County Executive and community councils, as well as aiding the County Council on constituent matters. The department also provides contribution funding for an AG contribution award program to replace the AG Marketing Co-op. This should allow for greater oversight by the Administration, provided the funds are given with conditions that will be monitored. Most of the Office’s budget is related to personnel and the proposed budget includes merit wage increases. These increases are offset by reduced salaries, pensions, and health benefits due to staff turnover. One temporary administrative position has been removed. The budget does not include OPEB costs, which were $3,601 in FY2017.

HEALTH DEPARTMENT

Key Changes: None



Operating Budget The Harford County Health Department (HCHD) provides services on behalf of the Maryland Department of Health and Mental Hygiene. Health department employees are State of Maryland employees; however, the Health Officer is appointed by the Harford County Council (acting as the Board of Health) and receives a stipend from Harford County. The County reimburses the State for HCHD employees’ salaries. The proposed appropriation for FY2018 is unchanged from the previous year. In the upcoming year, the County Council will need to appoint a new Health Officer to replace the retiring Susan Kelly.

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualHealth Department $ 3,728,318 $ 25,000 0.7% $ 3,703,318 $ 3,628,317 Percent ChangeChange from FY2017



HOUSING AND COMMUNITY DEVELOPMENT

Key Changes • Merit salary increases of 4%



Operating Budget The Harford County Housing and Community Development Department accepts and administers Federal, State and Local housing funding to assist residents with housing issues. Among various functions, the office administers payments to landlords on behalf of clients that utilize agency programs. In addition, the office provides homebuyers counseling and enforces the County’s livability code. The department’s budget reflects increases related to grants and contributions as well as health benefits adjustments and merit salary increases. It does not include OPEB costs; in FY2017, OPEB costs for the department were $9,393. The Housing Agency anticipates receiving $10.7 million in grant funding, primarily from the Federal government, which is a slight increase from the $10.5 million budgeted for FY2017. In addition, the County is required to provide matching funds of $86,274 for the Home Investment Partnership grant; the program is intended to help expand the supply of affordable housing in the County. There is no other County match required for anticipated grant funds; however, the budget does include $179,117 for various grant programs that the County funds and supports. Housing and Community Development also provides a significant number of grants to organizations that provide housing services to the community and receives grants from other government agencies (State and Federal) to assist with those programs. The budget includes requests to provide $462,755 of Grant-In-Aid to various community services agencies, which is $500 higher than the previous year.

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualHousing Services $ 1,404,853 $ 30,973 2.3% $ 1,373,880 $ 1,206,694 Unbudgeted OPEB Adj.: 9,393

Total $ 1,414,246 $ 40,366 2.9% $ 1,373,880 $ 1,206,694 Personnel 8 - 0.0% 8 9




INFORMATION AND COMMUNICATIONS TECHNOLOGY

Key Changes • Merit salary increases of 4%



Operating Budget The Office of Information and Communication Technology (ICT) is responsible for information systems administration, computer support and management information systems. ICT supports most County departments by managing network, telephone and email connectivity. ICT also provides hardware and software support to those departments. Contractual services comprise most of the ICT budget because most General Fund hardware and software costs are within this department to improve tracking, reduce redundancies in software purchases and allow for data sharing across departments. Increases for data processing hardware related to various maintenance contracts total $350,400 while increases for data processing software costs based on actual expense history for County software programs total $622,335. After contractual services, the largest line items in the budget are personnel costs. A net increase of $108,251 reflects merit salary increases, health insurance, pension and other benefit adjustments. While the department’s budget reflects merit increases for employees, it does not include OPEB costs. In FY2017, OPEB costs for the department were $43,392.

2018 2017 2016FY Budget Amended Budget FY ActualFund: General $ 8,320,490 $ 1,003,094 13.7% $ 7,317,396 $ 6,749,856

Unbudgeted OPEB Adj.: 43,392Total $ 8,363,882 $ 1,046,486 14.3% $ 7,317,396 $ 6,749,856 Personnel 23 - 0.0% 23 25




Capital Projects

The Refresh Program is intended to replace aging technology components, as needed. ICT creates and manages the replacement schedule. Safeguarding Business Operations is a countywide project, but has significant technology requirements and implications. Research and design/selection of an enterprise resource management program is included in this project. Other activities related to disaster recovery, website design and backup and business continuity will also be addressed through this project. For FY2018, some costs will be allocated to the three largest Funds since these projects benefit the entire County budget.

Project Number Description FY2018 Budget Total Cost Prior Appropriations Percent CompleteRefresh ProgramA124103 Fund: General 300,000 4,435,000 2,635,000 59.4%H134511 Fund: Highways 75,000 940,500 365,500 38.9%O136733 Fund: Water and Sewer 80,000 967,000 387,000 40.0%Safeguarding Business OperationsA114104 Fund: General 1,000,000 16,575,400 14,075,400 84.9%H114507 Fund: Highways 250,000 3,687,450 2,687,450 72.9%O116716 Fund: Water and Sewer 362,000 3,936,650 2,824,650 71.8%Total 2,067,000$ 30,542,000$ 22,975,000$ 75.2%



SHERIFF’S OFFICE

Key Changes

• Implementation of Salary Plan Study • Merit salary increase of 4% for civilian employees



Operating Budget The Sheriff’s Office is dedicated to the protection of life and property, arrest and confinement of offenders, court security and service of process, and preservation of the public peace. The Office is led by the Sheriff who is elected in accordance with the State’s Constitution. There are 5 divisions within the Office: Administrative Services, Patrol Operations, Investigative Services, Correctional Services and Court Services. While the Sheriff is a State Official, the Sheriff’s Office is funded by the County’s General Fund. The most significant increase to the Sheriff’s budget is related to merit salary increases ($317,344), step/grade/turnover/prior salary adjustments ($412,200) and implementation of the Law Enforcement Pay Study ($2,209,067). Other personnel costs for overtime/shift differential have increased from the prior year budget by $221,256 (7.5%), to reflect expense history and increased overdose investigations. Staff turnover and transfers between divisions result in savings of $342,542. Health Benefits costs are expected to increase by $485,685. The Sheriff’s budget does not include OPEB costs. In FY2017, OPEB costs for the department were $1,502,465. Aside from personnel related adjustments, the Sheriff’s Office budget has remained largely flat. Increases in Safety Equipment, Medical Expenses, Software and Insurance Costs are offset by savings in Utilities, Fuel Charges, Real Estate and Office Equipment. The budget includes State and Federal grants of $1,190,480, requiring a County match of $351,717.

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualAdministration and Support $ 11,125,185 $ 354,023 3.3% $ 10,771,162 $ 7,688,767 Patrol Operations 25,709,529 (17,567) -0.1% 25,727,096 25,520,277Investigative Services 8,087,651 (142,150) -1.7% 8,229,801 7,774,147Correctional Services 24,121,726 610,043 2.6% 23,511,683 22,037,175Inmate Welfare Fund 905,286 (5,075) -0.6% 910,361 493,218Court Services 6,580,258 (322,657) -4.7% 6,902,915 6,003,314Unbudgeted OPEB Adj.: 1,502,465

Total $ 78,032,100 $ 1,979,082 2.6% $ 76,053,018 $ 69,516,898 Personnel 535.35 - 0.0% 535.35 535.35




EMERGENCY SERVICES

Key Changes

• Addition of an EMS Division • 4% Merit Salary Increases


Additional Information Fiscal analysis prepared by: Chrystal Brooks, County Auditor. Version: 1. – 4/20/17

Operating Budget The Department of Emergency Services was created in FY2013 and is responsible for receiving and disseminating all emergency requests in Harford County for fire, EMS, rescue, hazardous materials, and police incidents. It serves as the primary Homeland Security Coordination agency for the County, manages emergency plans and ensures preparedness for incidents and recovery operations. The most significant change to the Emergency Services budget is the creation of an Emergency Medical Services division at a cost of $501,308. That amount will cover the cost of 8 paramedic positions for half of the year, benefits, uniforms and related supplies and equipment. The division is expected to have 16 paramedic positions when fully operational. The Fleet Replacement capital project includes funding for two new ambulances, expected to total $1.3 million. The County has budgeted for $350,000 in revenue, assuming 750 service calls in the second half of the fiscal year. Other significant changes to the budget are related to merit salary increases and health benefits increases. Salary increases have also been allocated for EMS Foundation employees. The budget does not include OPEB costs; in FY2017, OPEB costs for the department were $157,549. The Fire and EMS Foundation funding has increased by $146,668 to fund merit increases for the Foundation’s employees.

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualAdministration $ 4,856,501 $ 253,148 5.5% $ 4,603,353 $ 4,736,051 Emergency Communications 6,658,083 134,076 2.1% 6,524,007 5,977,409Support Services 2,307,158 104,986 4.8% 2,202,172 1,900,596Volunteer Fire Companies 6,774,642 (10,000) -0.1% 6,784,642 6,724,642Emergency Medical Services 501,308 501,308 !! - - Hazmat Response Team 431,623 2,140 0.5% 429,483 341,466Rescue Support 145,078 (5,000) -3.3% 150,078 117,618Unbudgeted OPEB Adj.: 157,549

Total $ 21,831,942 $ 1,138,207 5.5% $ 20,693,735 $ 19,797,782 Personnel 106 16.0 17.8% 90 91




Additional funding has also been proposed for Foundation Healthcare expenses and drug replacement expenses. Appropriations to the volunteer fire companies will not change, but Worker’s Compensation costs will decrease slightly. Funding has been included for an VFC Ladies Auxiliary Service Program ($100,000). This program will help older women who volunteered for fire service, but were not included in the County’s LOSAP program. Throughout the department, Contractual and other costs have been adjusted to be closer to expense history. The department anticipates receiving $1,731,886 (a 56.3% increase) in grants from State, Federal and Other sources. The County’s required grant match will be $132,899 which is approximately the same as the prior year. The increase in grants is largely related to Senator Amos funds that were received, but not included in the budget summary in the prior year ($574,301). Additionally, Exelon will be providing $50,000 towards an Emergency Planner position.

Capital Projects

The 911 Fee Fund is a compliance measure to track expenses paid from 911 Fee revenue. In FY2013, the County created the School Communications project to ensure that infrastructure would allow for reliable emergency communication inside of each school building. The budget includes funding to assist various VFCs with their facility repair/renovations. Facilities expected to receive these funds include Havre de Grace Ambulance Corp, Norrisville VFC, Susquehanna Hose Company and Whiteford VFC. Management has also advised that it plans to make an additional $350,000 available to fund the maintenance needs of the Whiteford Volunteer Fire Company.

Project Number Description FY2018 Budget Total Cost Prior Appropriations Percent CompleteFund: GeneralNew Mobile/ Portable Radio Upgrades 150,000$ 150,000$ -$ 0.0%New Whiteford VFC - Renovation of Main Station 350,000 700,000$ -$ 0.0%E164118 911 State Fee Funds 100,000 700,000 100,000 14.3%E134108 Public Safety Comm. In Schools 100,000 1,050,000 450,000 42.9%E174103 SCBA Replacement 250,000 2,000,000 500,000 25.0%E154104 VFC Facility Repair 15 400,000 3,100,000 700,000 22.6%Total 1,350,000$ 7,700,000$ 1,750,000$ 22.7%



The budget also includes funding for a new SCBA Replacement project. This will provide for the purchase and replacement of SCBA’s as deemed necessary. Use of the equipment will allow first responders to access hazardous and smoke filled environments.

INSPECTIONS, LICENSES AND PERMITS

Key Changes • Merit salary increases of 4% • Net increase of one position



Operating Budget The Department of Inspections, Licenses and Permits (DILP) is responsible for the administration and enforcement of all laws and regulations related to licenses, including those for plumbing, mechanical, construction and electrical installations; manufactured housing, and abandoned buildings. DILP generates revenue for the County through license, permit and inspection fees. The increase in DILP’s budget is due to the net addition of one position, a summer intern, and turnover adjustments due to transfers between divisions. Other changes are primarily related to reductions in health benefit costs and salary increases. The budget does not include OPEB costs. OPEB costs for the Department totaled $46,976 for FY2017.

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualDirector of DILP $ 740,884 $ 31,683 4.5% $ 709,201 $ 643,572 Building Services 1,048,134 24,908 2.4% 1,023,226 914,339Plumbing Services 589,366 (7,296) -1.2% 596,662 496,258Electrical Services 656,863 15,932 2.5% 640,931 602,121Unbudgeted OPEB Adj.: 46,976

Total $ 3,082,223 $ 112,203 3.8% $ 2,970,020 $ 2,656,290 Personnel 31 1.0 3.3% 30 29




PUBLIC WORKS

Key Changes • Merit salary increases of 4% • 4 vacant positions transferred from Construction Management to Emergency Services • Addition of 4 engineering interns

DIRECTOR’S OFFICE

Operating Budget The Department of Public Works, through its four divisions, is responsible for: • Design, management and construction of capital projects including Stormwater Management (Divisions of Construction Management and Stormwater Management);

2018 2017 2016FY Budget Amended Budget FYActualFund: GeneralEnv. Serv. Admin. and Eng. $ 156,642 $ 508 0.3% $ 156,134 $ 544,451 Transfer Station 9,425,000 $ 625,000 0.0% 8,800,000 2,947,323 Solid Waste Management 5,151,690 $ 102,570 0.0% 5,049,120 5,083,522 Recycling - - - 222,451 Landfills - Post Closure 176,600 (15,400) -8.0% 192,000 32,943 Scarboro Remediation - - - 723 Noxious Weed - - - 525 Gypsy Moth - - 0.0% - - Stormwater Management 1,467,441 (316,459) -20.8% 1,522,629 1,179,474 Capital Projects Management 737,342 (31,666) -4.1% 769,008 707,597 Fund: Solid Waste ServicesWaste to Energy - - - 8,025,244 Fund: Stormwater ManagementStormwater Management 1,324,500 (459,400) 0.0% 1,783,900 - Fund: HighwaysDirector of Public Works 288,629 2,315 0.8% $ 286,314 $ 189,149 Highways Engineering 2,320,064 47,083 2.1% 2,272,981 2,197,938 Construction Inspections 1,732,690 (202,468) -10.5% 1,935,158 1,884,166 Highways Maintenance 20,046,425 702,467 3.6% 19,343,958 18,723,901 Snow Removal 2,274,888 5,000 0.2% 2,269,888 2,464,635 Fund: Water & SewerW&S Administration 3,881,678 292,139 8.1% $ 3,589,539 $ 3,361,829 W&S Depreciation 20,565,000 7,765,000 60.7% 12,800,000 12,724,575 W&S Engineering 1,508,560 (6,769) -0.4% 1,515,329 1,132,931 W&S Maintenance 7,595,979 74,962 1.0% 7,521,017 6,214,499 Wastewater Processing 13,463,161 298,391 2.3% 13,164,770 10,623,763 Water Production 8,654,948 265,303 3.2% 8,389,645 6,998,061 Unbudgeted OPEB Adj.: 699,879

Total $ 101,471,116 $ 10,109,726 11.1% $ 91,361,390 $ 85,259,700 Personnel 365 (4.0) -1.1% 369 411






• Construction, maintenance and acceptance of County roads, bridges and associated structures (Division of Highways); • Operation, maintenance and control of the water supply and wastewater collection and treatment (Division of Water and Sewer); and • Management of solid waste (Division of Environmental Services). The Director of Public Works oversees these functions with the coordination of the Deputy Directors in each Division. The Director’s Office is funded by the Highways fund. The Highways Fund and Water and Sewer Fund each share in the County’s general administration costs by returning a pro-rata share of the costs to each fund. The budget for the Director’s office increased in FY2018 due to changes in Personal Services; with increases related to staff turnover, proposed merit salary increases, and PEHP, and decreases related to pension adjustments and estimated health benefits costs. There are no capital projects directly associated with the Director’s Office.

CONSTRUCTION MANAGEMENT

Operating Budget The Division of Construction Management manages the design and construction of non-DPW capital projects through the oversight of three bureaus:

• The Bureau of Capital Projects Management provides project management services for the design and construction of capital projects for County departments. • The Bureau of Construction Inspections provides performs inspections of other DPW divisions’ projects and erosion and sediment control projects. • The Bureau of Stormwater Management handles plan review and approval for Stormwater management and sediment control, construction and post-construction maintenance inspections for stormwater management, and implementation of the County’s MS4 Permit. Over the years, the funds for these activities have switched between various departments. The bureaus are operated generally using General, Highways and Stormwater Management funds, but its costs are allocated to other departments and divisions, when



necessary, to correctly capture each project’s costs. The changes in Personal Services are related to proposed merit salary increases and the net removal of four positions. The proposed budget does not include OPEB costs. In FY2017, OPEB costs for the division were $54,253. The Division of Stormwater Management’s budget decreased approximately $460,000 per recommendations from Treasury. While prior year’s legislation repealed the collection of stormwater remediation fees, funds remain in the Stormwater Management fund and must be included in the budget to be used. SWM Capital Projects

Stormwater management projects are selected based upon which will provide the largest cost-benefit impact towards the County’s MS4 permit requirements.

Project Number Description FY2018 Budget Total Cost Prior Appropriations Percent CompleteFund: GeneralA114105 Bynum Run @ St. Andrews Way Stream Restoration 850,000$ 2,197,026$ 1,347,026$ 61.3%New County Owned Stormwater Management Rehab and Repair 50,000 550,000 - 0.0%A164105 County Owned Watershed Restoration Improvements 1,850,000 23,800,000 5,525,000 23.2%A124104 Joppatowne Area Watershed Restoration 950,000 6,250,000 2,550,000 40.8%A144128 Maintenance/ Repair of Dams 350,000 3,455,000 1,355,000 39.2%A124105 Plumtree Run Watershed Restoration 1,800,000 9,243,452 2,943,452 31.8%A154103 Riverside Area Watershed Restoration 1,300,000 7,085,886 1,410,886 19.9%A124106 Sams Branch Watershed Restoration 1,100,000 4,272,922 1,172,922 27.5%A174112 Septic System Disconnection 50,000 350,000 50,000 14.3%A124107 Stormwater Pollution Prevention 150,000 1,631,395 731,395 44.8%New Upper Bynum Watershed Restoration Improvements 550,000 10,550,000 - 0.0%A164106 Watershed Restoration Assessments 800,000 11,900,000 3,100,000 26.1%A164107 Watershed Restoration Improvements 650,000 4,450,000 1,050,000 23.6%A164108 Watershed Restoration Maintenance 100,000 760,000 160,000 21.1%A104102 Wheel Creek Watershed Restoration 150,000 7,139,607 6,539,607 91.6%Total 10,700,000$ 93,635,288$ 27,935,288$ 29.8%



HIGHWAYS

Operating Budget

The Division of Highways is responsible for repair, maintenance and engineering of over 1,000 miles of County roads and more than 200 bridges. The division is primarily funded by the Highways Fund which receives income from inspection and review services, property taxes and Highways Users tax. Water resources management and stormwater inspections and remediation are also performed by this division. Highways Maintenance’s increase is due to salary adjustments and merit increases, and the addition of four engineering interns. The department’s budget does not include OPEB costs. In FY2017, OPEB costs for the Division were $342,019. The Highways Maintenance budget includes a 55% increase in funding for repairs handled by local contractors ($193296). The other County departments’ reimbursements have increased by $229,902 and Board of Education transportation support and traffic safety reimbursements have been eliminated ($2.0 million). The Highways Division leads the County’s snow removal efforts and utilizes staff and equipment from the County’s other maintenance departments. The snow removal budget has increased slightly due to the estimated need for additional contractual snow removal assistance.

Capital Projects

Highways determines its capital projects based, in part, on its annual infrastructure report. That report details the conditions of the County’s roads, bridges and culverts, and then prioritizes the

Project Number Description FY2018 Budget Total Cost Prior Appropriations Percent CompleteFund: HighwaysVarious Bridges (count: 17) 2,516,158$ 33,498,450$ 17,802,292$ 56.9%Various Roadways (count: 9) 3,975,000 33,893,255 23,438,255 66.9%New Resurfacing Roadways 5,705,017 31,355,017 - 0.0%H164503 APG Gate PILOT 1,179,397 2,000,000 820,603 100.0%H104512 Sidewalks and Handicapped Ramps 150,000 1,899,300 999,300 57.1%Total 13,525,572$ 102,646,022$ 43,060,450$ 42.0%



maintenance projects that should be performed. Bridge inspections are federally mandated every two years; results of those inspections are considered in determining planned projects. ENVIRONMENTAL SERVICES

Operating Budget

The Division of Environmental Services implements the County’s Environmental and Recycling and Solid Waste management programs and manages oversees the waste disposal contract with Maryland Environmental Services (MES). There are currently two major environmental services facilities in operation – Harford Waste Disposal Center (HWDC or Scarboro Landfill) and a recycling transfer station. There are several closed landfills in Harford County, that require post-closure maintenance such as mowing and groundwater monitoring. Additionally, the County has costs associated with the final decommissioning of the Waste to Energy Plant (WTE) which closed in 2016, In prior years, Environmental Services was funded by a subsidiary fund of the General Fund; beginning in last fiscal year (FY2017), the costs are paid by the General Fund. Operational oversight of the Landfill resides with MES, so Personal Services costs are minimal. Operating costs paid to MES are budgeted under Contractual Services. In, FY2016, the County entered an agreement with Baltimore County to accept Harford County solid waste. The FY2018 budget increases are related to an increased payment to Baltimore County for the Transfer Station Fee per the contract. The budget does not include OPEB costs. In FY2017, OPEB costs for the division were $5,209. Revenue from tipping fees and other landfill revenue generating activities is estimated to increase 2.3% ($8,838,100) in FY18 from the prior year. This revenue is lower than the prior completed years because the Waste-To-Energy facility is no longer in operation. That facility, in addition to tipping fees, collected revenue for the use of the steam generated by the facility. A summary of recent budget and actual Solid Waste Revenue is below.

FY2018 Proposed Change from FY2017 Percent Change FY2017 YTD FY2016 FY2015Budget $ 8,838,100 $ (239,195) -2.6% $ 9,077,295 $ 11,841,000 $ 12,461,000 Actual 6,375,846 12,688,090 13,631,386



Capital Projects

Five capital projects pertaining to Environmental Services received funding in FY2018. Two of which relate to the Harford Waste Disposal Center (HWDC).

WATER AND SEWER

Operating Budget The Division of Water and Sewer provides cost effective public water and sewer services. As an enterprise fund, Water and Sewer costs are paid from the revenues that those costs generate. Revenues are generally from connection charges for new accounts, permits fees and quarterly billings to customers for water and sewer services. In addition, the fund collects revenues from the rental of cell phone tower space atop County water towers. New rates were approved by the County Council in 2015 and in FY2018, new Water and Sewer Asset Reinvestment Charges will be collected for the first time. Water and Sewer services are provided within the Development Envelope, which is generally comprised of the southern and eastern parts of the County and the areas around Bel Air. The municipalities and Aberdeen Proving Ground are not primarily serviced by the County; however, the County does supplement the water needs in those locations. Similar to the other DPW divisions, Water and Sewer has a staff of engineers and planners that work to design, maintain, and manage construction of the water and wastewater treatment facilities and delivery systems. Many of the Water and Sewer employees are plant operations staff, chemists and laboratory technicians.

Project Number Description FY2018 Budget Total Cost Prior Appropriations Percent CompleteFund: GeneralD945610 HWDC Expansion 400,000$ 20,970,354$ 20,570,354$ 98.1%D155601 HWDC Pavement Upgrades 200,000 600,000 200,000 33.3%D174108 Scarboro Landfill Groundwater Treatment Plant 150,000 250,000 100,000 40.0%D155602 Tollgate Yard Trim Recycling Center (400,000) 975,081 1,375,081 141.0%D145602 Waste-to-Energy Facility Closure 1,310,000 6,113,753 4,803,753 78.6%Total 1,660,000$ 28,909,188$ 27,049,188$ 93.6%



Overall the Division’s budget increased from the prior fiscal year, and reflects increases related to proposed merit increases, temporary salaries, and PEHP while including decreases related to pension adjustment and worker’s compensation. The budget does not include OPEB costs, which, in FY2017, OPEB costs were $300,165. Other significant adjustments to the budget are for increased contractual services and supplies and materials based on actual expenses. These include increased costs for lab analysis, preventive maintenance programs, emergency pump outs, and unanticipated emergencies ($329,200); funding for the annual inspection of equipment ($138,814), and repair and renovation of the Havre de Grace plant ($256,113). The budget also reflects an increase in inter-fund transfers ($269,405) and a decrease in payments to Other Government Agencies for outside water and sewer services ($342,000) and Depreciation costs of $50,000, as recommended by Treasury. Capital Projects

Water and Sewer capital projects primarily include improvements to infrastructure. Significant projects like Safeguarding Business

Project Number Description FY2018 Budget Total Cost Prior Appropriations Percent CompleteFund: Water and SewerWater ProjectsNew Infrastructure Management System Enhancements 300,000$ 300,000$ -$ 0.0%New Perryman GAC Plant Improvements 500,000 1,000,000 - 0.0%New Perryman Wellfield Improvement 200,000 3,720,000 - 0.0%W156492 Replacement of Water Booster Station SCADA 1,200,000 1,500,000 300,000 20.0%W156701 Tollgate Road Water Main Parallel (1,292,227) 1,292,227 1,292,227 100.0%W166375 US 40 and Rt 159 SHA Water Relocation 1,200,000 3,800,000 2,600,000 68.4%O146735 Water and Sewer Authority Study Establishment (706,987) 293,013 1,000,000 341.3%W146660 Water Zone Improvements 150,000 1,230,000 450,000 36.6%Sewer ProjectsS176019 Bio Solids Facilities Enhancements 4,000,000 12,900,000 900,000 7.0%New Brentwood Park Pumping Station Improvements 200,000 475,000 - S156010 Bynum Ridge Replacement Sewer 560,000 800,000 240,000 30.0%New Delta WWTP Plant Upgrades 200,000 225,000 - 0.0%S106712 Edgewood Interceptor Sewer Parallel 150,000 9,500,000 500,000 5.3%New Inventory Storage and Control Improvements 85,000 5,635,000 - 0.0%S096703 Lower Bynum Run Interceptor Phase 6&7 2,657,154 16,463,170 9,463,170 57.5%New Pumping Station Improvements 65,000 1,065,000 - 0.0%S152968 Ring Factory PS and Fairwind Farms Abandonment 105,000 1,465,000 1,360,000 92.8%New Sod Run WWTP Ultaviolet Disinfection Project 200,000 2,700,000 - 0.0%S086698 Utility Protection/Restoration 200,000 1,700,000 500,000 29.4%Total 9,972,940$ 66,063,410$ 18,605,397$ 28.2%



Operations, which modernizes enterprise software applications, and; Fleet Replacement, which provides funds for the replacement of essential vehicles and other equipment necessary for agencies to perform critical jobs, are managed by ICT and Procurement, respectively. COUNTY COUNCIL

Key Changes

• Merit salary increases of 4% • Funding for summer internships in the County Auditor’s office

Open Audit Issues - 1


Operating Budget The County Council is the Legislative branch of the Harford County Government. The Council is supported by the Council Administrator who is responsible for ensuring that the Council Office functions efficiently and effectively and that the Council’s activities are correctly advertised and documented. The County Council office also has administrative oversight over the Office of the County Auditor, Board of Appeals and Rezoning, Office of the Council Attorney/People’s Counsel and Harford Cable Network. There are seven elected County Council members and nine Legislative Aides (four part-time). The Council’s budget reflects increases related to salary adjustments and merit increases, but does not include OPEB costs. In FY2017, OPEB costs for the department were $13,206. The County Council’s budget increased due to salary adjustments and merit increases as well as PEHP and estimated health benefits cost increases. It also reflects additional funds for business and travel expenses, based on actual expense history; as well as temporary salaries provided for summer internships and additional funding for outsourced audit services for the Office of the County Auditor. The Board of Appeals and Rezoning’s budget decreased despite the merit salary increase due to an estimated

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualCounty Council Office $ 1,301,849 $ 55,048 4.4% $ 1,246,801 $ 1,066,058 County Auditor 449,165 13,918 3.2% 435,247 365,572Board of Appeals and Rezoning 156,570 (2,981) -1.9% 159,551 137,554Council Attorney/People's Counsel 291,334 5,463 1.9% 285,871 185,316Harford Cable Network 780,613 13,673 1.8% 766,940 706,245Unbudgeted OPEB Adj.: 13,206

Total $ 2,992,737 $ 98,327 3.4% $ 2,894,410 $ 2,460,745 Personnel 27 - 0.0% 27 27




health benefits decrease, resulting from staff opting for changes in level of coverage, and a pension adjustment.

Capital Budget

The Harford Cable Network will receive funding to upgrade from standard definition equipment to high definition equipment, allowing high definition transmission of its broadcasts. JUDICIAL

Key Changes • Merit salary increases of 4% • Decreased grant revenue • Net addition of two positions


Operating Budget The structure and responsibilities of the Circuit Court of Maryland for Harford County are mandated by the State Constitution. The State of Maryland pays for the judges, some law clerks and the Clerk of the Court’s staff; Harford County pays for all other costs related to the Circuit Court. Those costs include administrative employee salaries, jury fees, contract evaluators and mediators. The County receives reimbursement for a portion of the jury fees from the State; juror fees are expected to increase based on historic use. The Court’s budget includes a $30,000 grant to the Court Appointed Special Advocate. This represents the County match for

Project Number Description FY2018 Budget Total Cost Prior Appropriations Percent CompleteFund: General New Harford Cable Network High-Definition Upgrade 250,000$ 500,000$ -$ 0.0%

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualCircuit Court $ 1,698,821 $ 206,118 13.8% $ 1,492,703 $ 1,411,151 Jury Services 277,300 45,300 19.5% 232,000 211,229Grand Jury 13,040 (960) -6.9% 14,000 13,040Jury Commissioner 259,063 5,587 2.2% 253,476 236,327Masters 231,591 7,951 3.6% 223,640 213,875Community Work Service 321,193 5,583 1.8% 315,610 302,254Family Court Services 577,130 9,475 1.7% 567,655 534,512Unbudgeted OPEB Adj.: 38,065

Total $ 3,416,203 $ 317,119 10.2% $ 3,099,084 $ 2,922,388 Personnel 32 2.0 6.7% 30 30





other grants expected from the State. Anticipated grants to the Judiciary are approximately $680,000, a decrease of approximately 10% from the prior year ($760,000). The Circuit Court budget reflects increases due to health benefits, PEHP, and insurance costs as well as a 4% merit salary increase and the addition of two positions created to supplement a new Circuit Court judge position. The budget does not include departmental OPEB costs, which in FY2017, were $38,065. There are other minor adjustments to actual use for supplies, materials and business expenses.

STATE’S ATTORNEY

Key Changes

• Merit salary increases of 4% • Assistant State's Attorney 6% supplemental increase



Operating Budget The State’s Attorney represents the State of Maryland in all criminal actions. By law, the State’s Attorney is a state employee that is elected by the County’s residents. The County pays all the costs related to the Office. The budget changes are primarily related to the 4% merit salary increase, Assistant State's Attorney 6% supplemental increase, and health benefit cost increases as well as temporary salaries for employees formerly paid through grant. The budget does not include departmental OPEB costs, which in FY2017, were $118,346. Other changes are based on actual expense history and grant match increases. The State’s Attorney Office anticipates receiving grants in the amount of $816,796 and is required to provide matching funds of $483,220 for the Cooperative Reimbursement Agreement grant.

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualOffice of the State's Attorney $ 5,893,086 $ 95,704 1.7% $ 5,797,382 $ 5,395,144 Family Justice Center 344,102 18,076 5.5% 326,026 304,420Unbudgeted OPEB Adj.: 118,346

Total $ 6,355,534 $ 232,126 3.8% $ 6,123,408 $ 5,699,564 Personnel 59 - 0.0% 59 59




BOARD OF ELECTIONS

Key Changes • Increases in personnel and elections costs in mid-term primaries and municipal elections year • Transfers between categories resulting in a net budget decrease



Operating Budget The Board of Elections is responsible for maintaining Harford County’s voter registration database and conducting federal, state, local and municipal elections. The Board of Elections also performs activities to ensure that election results are valid and accurate. The department’s budget is comprised of general Board of Elections expenses such as personnel, office supplies, equipment and election related systems. While Harford County is responsible for operating the Board of Elections, the employees are State of Maryland employees. The Election’s budget included transfers between categories resulting in a net budget decrease. These transfers were offset by increases in PEHP costs and temporary salaries, as well as additional funding for membership fees & dues, supplies & materials, election equipment transportation costs, and contractual costs based on actual expense history, resulting in a budgetary increase from FY2017. Per the Office of Budget & Management Research (Budget), the Gubernatorial primary was moved back to June to ensure there is one election (Primary or General) per fiscal year resulting in “more consistency in expenditures from year-to-year”. Budget added, “The increase in Personnel for Election Expense was requested by the Board of Elections based on anticipated need, and was offset by an expected reduction in reimbursements to the State Board of Elections for voting systems and software.”

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualBoard of Elections $ 1,003,855 $ (303,068) -23.2% $ 1,306,923 $ 1,032,284 Election Expense 1,397,380 317,400 29.4% 1,079,980 691,341Total $ 2,401,235 $ 14,332 0.6% $ 2,386,903 $ 1,723,625




BOARD OF EDUCATION

Key Changes

Operating Budget The Harford County Board of Education was established by state law to maintain a system of public schools in Harford County. The

2018 2017 2016Complete Budget FY Budget Change Amend. Budget FY ActualBoard of Education $ 680,581 $ 64,691 10.5% $ 665,870 $ 629,338 Executive Administration 1,612,745 72,058 4.7% 1,577,001 1,531,827Education Services 184,594,593 11,397,828 6.6% 175,658,736 172,216,622Special Education 43,825,854 3,802,832 9.5% 41,987,588 40,604,926Extra-Curricular Activities 3,811,356 364,800 10.6% 3,759,104 3,537,524Safety and Security 902,416 40,288 4.7% 890,214 899,420Student Services 15,675,166 1,747,403 12.5% 14,748,844 14,111,726Curriculum and Instruction 6,256,113 1,485,793 31.1% 6,064,126 5,749,068Operations and Maintenance 69,976,554 365,723 0.5% 69,610,831 64,844,761Business Services 36,930,796 1,141,309 3.2% 35,789,487 34,881,745Human Resources 82,051,899 3,941,593 5.0% 78,110,306 76,852,968Office of Technology 9,751,377 (318,591) -3.2% 10,069,968 9,035,322Restricted Fund 30,434,409 468,925 1.6% 29,965,484 29,539,443Total $ 486,503,859 17,606,300 3.8% $ 468,897,559 $ 454,434,690 Personnel 4,883.7 (9.1) -0.2% 4,892.8 4,953.2

2018 2017 2016Budget Request FY Budget Change Amend. Budget FY ActualCounty Executive's Budget $ 238,715,645 $ 5,181,141 2.2% $ 233,534,504 $ 228,208,971 HCPS Request to County Exec. 251,603,673 (4,241,442) -1.7% 255,845,115 252,548,526Difference: (12,888,028)$ (22,310,611)$ (24,339,555)$

2018 2017 2016County Appropriations FY Budget Change Amend. Budget FY ActualAdministrative Services $ 2,946,985 $ - 0.0% $ 2,946,985 $ 2,946,985 Mid-level Administration 10,565,437 - 0.0% 10,565,437 10,565,437Instructional Salaries 138,354,586 5,000,000 3.7% 133,354,586 129,854,586Textbooks & Classroom Supplies 6,877,305 - 0.0% 6,877,305 6,877,305Other Instructional Costs 1,596,362 - 0.0% 1,596,362 1,596,362Special Education 16,102,558 - 0.0% 16,102,558 16,022,558Student Transportation 5,971,777 181,141 3.1% 5,790,636 4,045,103Operation of Plant 13,097,775 - 0.0% 13,097,775 13,097,775Maintenance of Plant 2,600,461 - 0.0% 2,600,461 2,600,461Fixed Charges 36,146,904 - 0.0% 36,146,904 36,146,904Student Personnel Services 2,644,795 - 0.0% 2,644,795 2,644,795Health Services 1,767,627 - 0.0% 1,767,627 1,767,627Community Service 43,073 - 0.0% 43,073 43,073Total $ 238,715,645 $ 5,181,141 2.2% $ 233,534,504 $ 228,208,971

Percent Change

Percent Change

Percent Change



• $5.0 million has been added for instructional salaries

Open Audit Issues: 14 Budget Recommendations

• We strongly recommend that the schools prepare a zero-based budget to demonstrate the specific programs, services and staffing levels that are needed. Remains from prior year.

• We encourage School and County officials to continue to take steps towards identifying and implementing shared efficiency improvements. Remains from prior year.

• School and County officials should consider including technology refresh costs in the operating budget, rather than in the capital budget. Remains from prior year.


Board selects a Superintendent who is responsible for administration of the school system. There are 54 schools in the system, educating over 37,000 students annually. Board of Education funding represents more than one third of the County’s operating budget. The County government provides about half of the school system’s funding. Other funding comes from the State and Federal governments, grants and user fees for facility and school programs. The Board of Education has proposed a fiscal year 2018 Unrestricted Fund budget that is approximately $17.1 million (3.9%) larger than the approved fiscal year (FY) 2017 budget. As in the prior year, the largest increases are in the areas of Salary and Wages. There are also significant increases for Insurance Costs (in Human Resources). Capital Projects have increased substantially within the Restricted Fund budgets. The County funding requested has increased by $18.1 million or 7.7%. The County Executive’s proposed budget exceeds the required maintenance of effort level and increases the County appropriation by approximately $5.2 million (2.2%) when compared to the prior year. $5.0 million of the increase has been provided for instructional salaries, with an additional amount included for bus contracts. Our complete analysis of the proposed Board of Education budget is audit report 2017-L-03 and can be found on the County Auditor website. Our recommendations from that analysis are noted to the left.



Capital Projects

There are 7 active projects in the proposed capital budget for FY2018. Projects in the list above reflect all of the Board of Education requests and are sorted by their Board of Education priority. As in prior years, the largest projects are for major building system enhancements such as HVAC or infrastructure. Through amendments, the County has also provided funding for Major HVAC repairs ($25,000) and Roof Replacement of North Harford Elementary School in the amount of ($1,064,000) as well

DescriptionProject

NumberFY2018 Total

Budget Request CE Proposal Total Project CostPercent

CompleteFund: GeneralHavre de Grace HS Replacement B144111 38,000,000 38,000,000 99,202,000 4.0%Bel Air ES HVAC/Open Space New 7,560,000 7,561,000 7,560,000 0.0%North Harford ES Roof Replacement New 1,062,000 1,064,000 1,062,000 0.0%Roye Williams HVAC Systemic Renovation New 10,550,000 10,550,000 0.0%Technology Refresh B044118 7,000,000 1,000,000 103,255,371 25.0%CEO Annex and Training Areas HVAC New 1,860,000 1,860,000 0.0%N. Harford HS Aqua. Lab and Greenhouse New 830,000 830,000 830,000 0.0%Harford Glen Generator and Dryers New 154,000 154,000 0.0%Swimming Pool Renovations B104120 352,316 353,000 1,110,000 27.0%Special Ed Facility Improvements B114120 100,000 1,050,000 19.0%Career & Tech Education Equipment Refresh B064130 250,000 1,500,000 50.0%Music Technology Lab B144114 150,000 1,077,557 32.0%Technology Education Lab Refresh B994124 240,000 2,500,000 65.0%Textbook/Supplemental Refresh B064129 1,000,000 9,931,644 47.1%Fire Alarm & ER Communications B004112 900,000 4,165,000 27.0%Security Measures B144134 225,000 12,740,000 13.6%Stormwater Mgmt, Erosion, Sediment Control B064128 485,000 3,110,000 24.9%Major HVAC Repairs B064145 2,645,000 25,000 18,107,476 48.7%Environmental Compliance B974118 880,000 4,541,263 64.8%ADA Improvements B064143 100,000 1,200,000 50.0%Septic Facility Code Upgrades B114126 75,000 5,360,592 91.6%Replacement Buses B024118 3,224,000 250,000 18,422,994 54.6%Replacement (Maint.) Vehicles & Equip. B034115 4,412,400 13,934,796 40.1%Paving - Overlay and Maintenance B064127 700,000 4,406,370 48.9%Athletic Field Repair and Restoration B034113 100,000 100,000 1,087,000 44.8%Domestic Water and Backflow Prevention B054111 1,050,000 2,700,000 22.2%Floor Covering Replacement B114117 200,000 1,150,000 8.7%Folding Partition Replacement New 100,000 600,000 0.0%Outdoor Track Reconditioning B114119 100,000 550,000 63.6%Paving - New Parking Areas B064126 350,000 350,000 0.0%Playground Equipment B144117 300,000 5,699,241 0.0%Building Envelope Improvements B144107 200,000 1,900,000 0.0%Music Equipment Refresh B144113 50,000 925,000 0.0%Equipment and Furniture Replacement B004113 100,000 2,255,000 0.0%Energy Conservation Measures B114116 250,000 2,000,000 0.0%Band Uniform Refresh 150,000 702,340 0.0%Bleacher Replacement B094130 100,000 600,000 0.0%Locker Replacement B094131 150,000 1,230,000 0.0%Relocatable Classrooms B094120 130,000 11,974,637 0.0%



as fully funding the Bel Air Elementary School Systemic Renovation & Open Space Enclosure project in the amount of $7,561,000. Some of the projects that were high priorities have been funded in the FY2018 budget. As in prior years, the Technology Refresh project included a significant request from the Board of Education that has been only partially funded. Harford County Government issues debt on behalf of the school system for capital projects. Debt Service for school bonds is projected to be $31,826,225, about 2.5% higher than the prior year.

HARFORD COMMUNITY COLLEGE

Key Changes

• $3 per credit hour increase in tuition • Salary increases of 2% for College employees


Additional Information

Operating Budget Harford Community College provides transfer, career and developmental education programs and continuing education courses, per state statute. The proposed operating budget supports approximately 9,000 credit students and 10,300 non-credit students. Enrollment has declined over the past two years and is expected to continue to decline slightly for FY2018. Harford County provides about one third of the College’s funding. Other funding comes from the State government and student tuition and fees. The College has planned a $3 per credit hour

2018 2017 2016Complete Budget FY Budget Amended Budget Amended BudgetInstruction $ 18,801,580 $ 307,554 1.7% $ 18,494,026 $ 18,419,969 Academic Support 6,750,528 134,891 2.0% 6,615,637 6,641,025Student Services 6,019,033 221,796 3.8% 5,797,237 5,604,462Institutional Support 10,178,639 172,778 1.7% 10,005,861 9,472,883Operations and Maintenance 4,983,436 10,730 0.2% 4,972,706 4,707,114Waivers/ Work Study 1,059,575 150,000 16.5% 909,575 885,338Non-mandatory Transfers 1,074,421 (449,000) -29.5% 1,523,421 903,421Total $ 48,867,212 $ 548,749 1.1% $ 48,318,463 $ 46,634,212

2018 2017 2016Budget Request FY Budget Amended Budget Amended BudgetFund: General County Executive's Request 16,411,612 850,000 5.5% 15,561,612 15,261,612 Board Request to County Exec. 16,411,612 540,334 3.4% 15,871,278 15,260,844


Change from FY2017 Percent Change



Fiscal analysis prepared by: Sarah Self, Staff Auditor. Version: 1 – 4/17/17

increase in tuition. The tuition rate continues to be an affordable alternative to four-year institutions. The Board of Trustees approved a budget request for FY2018 that is 5.5% higher than the funding provided by Harford County in the prior year. The request includes salary increases of 2% and benefit increases of 3% for the College’s employees and price escalations associated with various contractual services (e.g., legal, audit, custodial, security, maintenance, grounds, repairs, mailing). Increases within the budget proposal also include funding for New Presidential Initiatives; a branding campaign; and the development of a strategic plan. While the overall budget proposal increased, funding for waivers and transfers decreased mainly due to discontinued transfer funding to the Harford Sports Complex and APGFCU Arena auxiliary funds. The budget increase will be funded through an increase in tuition and requested increased funding, of $850,000. A portion of this increase ($300,000) will restore funding levels for instruction that had been reduced in prior years. The remaining increase in funding ($550,000) will address pay parity. Capital Projects

There is one new project in the capital budget for FY2018. The project will provide funding for various renovations of Fallston Hall, including: updating of the building’s life safety systems; HVAC replacements; and upgrades of the building’s elevator, lighting, plumbing, telecommunications, and classroom technology. In addition to the above projects, the County issues and services debt on behalf of the College. Debt Service for College bonds is projected to be $3,284,198 in FY2018.

Project Number Description FY2018 Budget Total Cost Prior Appropriations Percent CompleteFund: General NEW Fallston Hall Renovation 586,880$ 7,137,880 - 0.0%Total 586,880$ 7,137,880$ -$ 0.0%



HARFORD COUNTY PUBLIC LIBRARY

Key Changes • Funds provided for wage increases



Operating Budget The Harford County Public Library’s mission is to provide efficient and convenient service to the residents of Harford County. Currently, the Harford County Public Library serves more than 225,000 registered borrowers. The Board of Library Trustees operates under state law and appoints a Director who manages the operations of the library system and its 11 branches. Harford County provides about 87% of the Library’s funding. Other funding comes from the State government, contributions and user fees. In November 2016, the Board of Library Trustees approved a budget request for FY2018 that is 4.3% higher than the prior year’s request. The increases are primarily in two categories: • Health & Dental Insurance - $398,654 (16% increase) • Materials – $270,905 Increase for materials and processing to support STEM (LEAP/Little Leapers) and downloadable media (eBooks, eMovies, eAudio, etc.). The funding level requested by the County Executive is slightly higher than the prior year. Funds have been provided for wage parity with County employees ($455,204).

2018 2017 2016Complete Budget HCPL Budget Request Change from FY2017 HCPL Revised Budget FY ActualSalaries and Benefits $ 14,776,309 $ 426,639 3.0% $ 14,349,670 $ 14,070,932 Books & AV Materials 2,956,241 270,905 10.1% 2,685,336 2,573,873 Contracted Services 731,460 74,054 11.3% 657,406 760,736 Utilities 682,500 36,484 5.6% 646,016 626,096 Operating Expenditures 576,090 9,000 1.6% 567,090 494,390 Total $ 19,722,600 $ 817,082 4.3% $ 18,905,518 $ 18,526,027 RevenuesCounty Executive's Proposal 17,100,985$ $ 456,411 2.7% 16,644,574$ 16,279,546$ Request to County Exec. $ 17,546,936 $ 191,903 1.1% 17,355,033$ 16,775,827$ State Funding 1,534,684 - 0.0% 1,534,684 1,482,721 Library Revenue 640,980 (81,780) -11.3% 722,760 845,905 Other Revenues - (3,500) -100.0% 3,500 484,607 Total $ 19,722,600 $ 817,082 4.3% $ 18,905,518 $ 35,868,606

Percent Change



Capital Projects

Three projects above were included in the HCPL budget request, but two are unfunded for FY2018. The Aberdeen Branch Expansion had funding removed to re-appropriate to other projects. The Technology project received funding ($200,000) to provide for periodic replacement of staff and public computers and network infrastructure replacement and upgrades. Note – Library branches are County owned so, unless requested by HCPL, all funded maintenance-related capital projects pertaining to libraries will be included in the Administration’s capital budget. Accordingly, the Edgewood Library Roof Replacement project is included in the Administration’s capital budget.

PARKS AND RECREATION

Key Changes Operating Budget

Project Number Description FY2018 HCPL Request FY2018 CE Budget Total Cost Prior Appropriations Percent CompleteFund: General L124118 Technology 237,000$ 200,000$ 1,759,100$ 559,100$ 31.8%Mobile Services Vehicles 228,900 - 463,050 - 0.0%New Replace Carpeting in Abingdon Branch 250,000 - 250,000 - 0.0%L124115 Aberdeen Branch Expansion - (9,640) 46,360 56,000 120.8%L124116 Darlington Branch Expansion - - 56,000 56,000 100.0%

Total 715,900$ 190,360$ 2,802,922$ 809,512$ 28.9%

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualAdministration $ 842,199 $ 74,090 9.6% $ 768,109 $ 675,017 Recreational Services 2,726,760 61,328 2.3% 2,665,432 2,497,995Parks and Facilities 5,770,188 (265,205) -4.4% 6,035,393 5,487,094Fund: Parks and RecreationEmmorton Rec. & Tennis Ctr. 320,772 16,785 5.5% 303,987 264,768Oakington Penninsula 392,862 42,029 12.0% 350,833 328,156Rec. Council Activities 176,366 530 0.3% 175,836 139,235Unbudgeted OPEB Adj.: 163,527

Total $ 10,392,674 $ 93,084 0.9% $ 10,299,590 $ 9,392,265 Personnel 84 (8.0) -8.7% 92 93.5




• Merit salary increases of 4% • Net reduction of 8 positions



The Department of Parks and Recreation (P&R) is responsible for operating and maintaining park facilities, preserving open space and offering leisure opportunities for citizens. Facilities maintenance and capital planning are managed within the department, separately from the County’s other related departments. The department’s overall budget increased from the prior year due to merit increases, staffing changes and adjustments to health benefit adjustments health benefits for anticipated cost increases and insurance costs. Much of the increase was offset by the net savings from eliminating 8 departmental positions. The budget does not include OPEB costs, which in FY2017, were $163,527. Miscellaneous funds increased by $150,000 due to a contribution for Cedar Lane Sports Complex. Personnel changes include the abolishment of five (5) vacant positions and the transfer of three (3) positions to other departments. While the County owns and maintains the parks and recreation facilities, programming like youth sports and dance classes are managed by 21 local recreation councils. The recreation councils are separate entities from the County and each other; they can determine which programs they will coordinate and the costs of those activities. Since they address a key function of P&R, the County provides small grants to the recreation councils and they permitted to use County facilities at no charge. When these groups use school facilities, the County reimburses the school system for janitorial salaries. The anticipated grants awarded to the department total $105,296, up $2,700 from the prior fiscal year. The County’s match for state and federal grant programs totals $44,038. Contractual services for Parks and Facilities increased by $295,120 to due to higher contracted expenses for synthetic turf, pest control, tree trimming/removal and the inclusion of an on-call agreement to snow removal services. The budget also reflects Capital outlay funds of $119,500 for several pieces of large equipment, including a multi-purpose tractor. Parks and Recreation generates revenue from the use of its facilities on the Oakington Peninsula and at the Emmorton Recreation and Tennis Center. Revenues for service charges are projected to be $854,000 (slightly less than the prior year). These revenues are used to pay the operating costs of the revenue generating facilities and to support recreation council activities and other special activities like the County’s ropes course.



Capital Projects

There are 31 funded P&R projects in the proposed capital budget for FY2018. The projects address a wide variety of improvements and renovations to park spaces and facilities. Within general projects, such as Facility Renovations, the department has surveyed the related facilities and, with the Rec Councils, prioritized projects based on the survey results. Capital grants to the 21 recreation councils are included in the Park Improvements project. ‘Other’ funding is used in the Capital Budget and more frequently in Parks and Recreation projects; it comes from sources outside of the County government. In some cases, ‘Other’ funding has been

Project Number Description FY2018 Budget Total Cost Prior Appropriations Percent CompleteFund: Parks and Rec.P144120 ADA Improvements 120,000$ 629,307$ 284,307$ 45.2%P104119 Anita C. Leight Center Improvements 25,000 955,000 730,000 76.4%P084117 Athletic Field Improvements 1,400,000 15,800,000 11,000,000 69.6%New Bush River Dredging and DMP Site 16 100,000 1,675,000 - 0.0%P164113 Canoe and Kayak Water Access 280,000 1,005,000 450,000 44.8%P104111 Cedar Lane Sports Complex Improvements 100,000 2,761,000 2,161,000 78.3%New East Baker Avenue Pedestrian Bridge 100,000 100,000 - 0.0%P104113 Eden Mill Park Rehabilitation 100,000 1,005,000 855,000 85.1%New Edgely Grove Farm 40,000 140,000 - 0.0%P124120 Emily Bayliss Graham Park 200,000 2,800,000 1,575,000 56.3%P114121 Emmorton Rec and Tennis Ctr. Improv. 15,000 1,085,000 970,000 89.4%P154110 Enlarged Gymnasiums & Joint Facilities 600,000 1,200,000 600,000 50.0%New Facility Renovations 225,000 965,000 340,000 35.2%P164114 Flying Point Park Improvements 179,000 303,000 124,000 40.9%New Forest Hill Recreation Complex Improvements 200,000 800,000 - 0.0%New Fox Meadows Park Improvements 100,000 350,000 - 0.0%P164115 Francis Silver-Park Improvement 400,000 425,000 25,000 5.9%P124121 Gunpowder River Dredging 330,000 1,974,000 1,434,000 72.6%New Gymnasium Floor Repair and Renovation 60,000 435,000 - 0.0%P084121 Indoor Rec. Facility - Forest Hill/Hickory 250,000 1,474,000 1,224,000 83.0%P084123 Joppatowne Area Dredging 100,000 1,090,000 990,000 90.8%P154112 Liriodendron Improvements (135,000) 10,000 145,000 1450.0%P104114 Natural Turf Improvements 150,000 1,840,000 1,090,000 59.2%New Park Improvements 80,000 330,000 - 0.0%P124124 Parking Lot Paving 250,000 1,159,000 499,000 43.1%P104117 Parkland Acquisition 1,050,000 10,441,000 5,306,000 50.8%P104118 Playground Equipment 225,000 3,005,000 1,805,000 60.1%P154113 Swan Harbor Farm Improvements 75,000 1,664,000 539,000 32.4%P114123 Tennis/Multipurpose Courts 100,000 1,240,000 640,000 51.6%P124126 Trails & Linear Parks 1,550,000 5,100,000 2,550,000 50.0%P084126 Tudor Hall Rehabilitation 50,000 550,000 500,000 90.9%

Total 8,319,000$ 62,310,307$ 35,836,307$ 57.5%



pledged by an organization for a particular purpose. Additionally, some projects have a potential funding source described as ‘Other’ because the funding has not yet been offered or pledged, but budget authority is required to accept and use the funds, if they become available. ‘Other’ funds may not be spent until after they are received by the County.

CONSERVATION OF NATURAL RESOURCES

Key Changes

• Merit salary increases of 4% • Health benefits increases



Operating Budget The agencies within Conservation of Natural Resources are Extension Services and Soil Conservation. Both departments are partnerships with state agencies, so neither is funded solely by Harford County. Soil Conservation provides services to developers and land owners to ensure that construction projects have made adequate provisions for erosion control. In rural areas, the office helps property owners design and develop related systems. The office also provides inspection of erosion control systems in accordance with State and Federal guidelines. Five of the office’s employees are paid by the County. The department’s budget reflects increases related to health benefits adjustments and merit salary increases, but does not include OPEB costs. In FY2017, OPEB costs for Soil Conservation were $7,627. Extension Services is a cooperative program operated by the University of Maryland. It provides education and information on horticulture, agriculture and nutrient management. The office is also responsible for supervision of the 4-H youth programs in Harford County. All Extension employees are state employees. The County reimburses the State for a portion of the personnel costs.

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualExtension Services $ 245,256 $ - 0.0% $ 245,256 $ 244,777 Soil Conservation 483,199 22,195 4.8% 461,004 403,337Unbudgeted OPEB Adj.: 7,627

Total $ 736,082 $ 29,822 4.2% $ 706,260 $ 648,114 Personnel 5 - 0.0% 5 5




ECONOMIC DEVELOPMENT

Key Changes • Merit salary increase of 4% • Decreases in salary and benefits due to transfer of 2 positions and abolishment of 4 positions


Budget Recommendations

• County Officials should consider if the ratio of competitive grants to non-competitive contributions represents the ideal use of Hotel Occupancy Tax revenue.


Operating Budget The Office of Economic Development was created to advance the economic welfare of the citizens of Harford County. The Office and its Advisory Board work towards that goal by marketing the area to new businesses and providing financial resources to local businesses. In that role, Economic Development provides outreach to the community through loans and grants, business coordination with County agencies, tourism funding and Transit operations. The department’s budget reflects increases for proposed merit salary increases, pension and insurance costs. Temporary Salaries have been reduced by $43,795. Four Transit positions have been abolished, saving approximately $300,000. Two vacant Economic Development positions were transferred to Emergency Services. The budget does not include OPEB costs; in FY2017, OPEB costs for the department were $29,361. The proposed budget includes a contribution to the Economic Development Opportunity Loan Fund of $28,000 and Workforce Development Training of $100,000. In addition, the budget includes a contribution to Harford Business Innovation Center ($165,000), Susquehanna Workforce Development ($20,000) and Chesapeake Science and Security Corridor (CSSC) Micro Enterprise Fund ($2,500). These amounts remain unchanged from the prior year. The Office anticipates receiving $1.75 million in grant to pass-through to Susquehanna Workforce Network. Tourism activities are funded through Revenues from the County’s Hotel Occupancy Tax, which is projected to be $2.35 million in FY2018. Part of the funding is used to provide Tourism grants to agencies that apply and are approved through the Economic

2018 2017 2016Fund: General FY Budget Amended Budget FY ActualEconomic Development $ 1,816,319 $ (213,042) -10.5% $ 2,029,361 $ 1,820,641 Tourism and Marketing 1,830,000 - 0.0% 1,830,000 1,649,103Harford Transit 2,347,039 (332,837) -12.4% 2,679,876 2,338,916Unbudgeted OPEB Adj.: 29,361

Total $ 6,022,719 $ (516,518) -7.9% $ 6,539,237 $ 5,808,660 Personnel 14 (6.0) -30.0% 20 22




Development Advisory Board. The grant application period closed on April 15, 2017; grant awardees have not yet been determined by the Economic Development Advisory Board. Remaining Tourism funds are awarded at management’s discretion. The distribution of Hotel Occupancy Tax revenue is summarized below.

In addition to the Transit positions that have been abolished, the budget will decline slightly because of adjustments to grant matches and an expected reduction in Fuel expenses. Harford Transit anticipates receiving State and Federal grants in the amount of $3,472,813 - 28% higher than the prior year. Those grants will require a County match of $1,658,703.

HUMANE SOCIETY

Key Changes • Increased funding of $50,000



Operating Budget The Humane Society of Harford County is partially funded by Harford County Government. The remainder of its budget is comprised of customer charges and private donations. The proposed FY2018 budget increased $50,000 from the prior year. The Humane Society requested additional funding for coverer higher than expected energy costs. The County’s Administration has advised that they are working with the Humane Society to address the underlying HVAC issues in the new facility.

Hotel Occupancy Tax Revenue 2,350,000$ Competive 63.8%Toursim Grant-In-Aid 1,500,000$ 63.8%

Non-Competetive 36.2%Economic Development Contributions 330,000$ 14.0%Ag Contribution Award Program 254,000 10.8%Remaining Funds 266,000 11.3%

2018 2017 2016FY Budget Amended Budget FY ActualFund: General $ 800,000 $ 50,000 6.7% $ 750,000 $ 750,000




INSURANCE

Key Changes • None



Operating Budget The County maintains a self-insurance fund for paying general and automobile liability claims and property damage losses. Based on an actuarial analysis the County transfers (as an insurance premium) the amount of the actuarial estimate to the Self-Insurance Fund from the General, Highways and Water & Sewer funds. The amount budgeted for this in FY2015 and 2016 was $0. In FY2017, the County plan began replenishing the fund and will continue that practice in FY2018. In addition to transfers from the other funds, the Self-Insurance Fund will receive approximately $26.7 million in Revenues and Reimbursements; estimated expenditures are expected to equal revenues. A significant portion of the expenses and revenue in the Self-Insurance Fund are for Healthcare expenses. The current balance in the Fund is approximately $8.1 million.

2018 2017 2016FY Budget Change FY Budget FY ctualGeneral Liability Insurance

Subtotal $ - - 0.0% $ - $ -

Auto Liability InsuranceSubtotal $ - - 0.0% $ - $ -

Property Damage InsuranceSubtotal $ - - 0.0% $ - $ -

Other Insurance Fund: General $ 748,098 276,252 58.5% $ 471,846 $ - Fund: Highways 178,306 71,020 66.2% 107,286 - Fund: Water and Sewer 156,626 80,665 106.2% 75,961 - Subtotal $ 1,083,030 427,937 65.3% $ 655,093 $ -

Total $ 1,083,030 $ 427,937 65.3% $ 655,093 $ -

Percent Change



BENEFITS

2018 2017 2016FY Budget Amended Budget FY Actual

Pension Fund: General $ 705,784 $ 33,609 N/A% $ 672,175 $ 640,167 Fund: Highways 89,339 4,253 N/A% 85,086 89,137 Fund: Water and Sewer 98,275 4,681 N/A% 93,594 81,034 Subtotal $ 893,398 42,543 N/A% $ 850,855 $ 810,338

Firemen's PensionFund: General $ 1,692,000 $ (75,558) -4.3% $ 1,767,558 $ 1,912,843 Liquor Board EmployeesFund: General 6,500 - 0.0% 6,500 5,786 Worker's CompensationFund: General - (75,000) -100.0% 75,000 75,000 Other Post Employment Benefits* Fund: General 4,850,000 2,313,617 91.2% 2,536,383 3,079,958 Fund: Highways 700,000 339,729 94.3% 360,271 428,128 Fund: Water and Sewer - (315,677) 0.0% 315,677 390,424 Fund: Ag. Preservation - - 0.0% - - Fund: Parks and Rec. 7,000 344 5.2% 6,656 8,544

Subtotal $ 5,557,000 2,338,013 72.6% $ 3,218,987 $ 3,907,054 Other Health Insurance

Subtotal $ - - 0.0% $ - $ 366,267 Unemployment InsuranceFund: General 46,289 (2,671) -5.5% 48,960 69,507 Fund: Highways 20,000 - 0.0% 20,000 - Fund: Water and Sewer 9,000 - 0.0% 9,000 18,807

Subtotal $ 75,289 (2,671) -3.4% $ 77,960 $ 88,314 Death Benefits Fund: General 20,000 - 0.0% 20,000 11,813 Fund: Highways 2,000 - 0.0% 2,000 - Fund: Water and Sewer 2,000 - 0.0% 2,000 -

Subtotal $ 24,000 - 0.0% $ 24,000 $ 11,813 Retiree's InsuranceFund: General 4,899,588 162,401 3.4% 4,737,187 3,737,725 Fund: Highways 1,354,914 47,281 3.6% 1,307,633 1,364,980 Fund: Water and Sewer 588,498 2,318 0.4% 586,180 541,295

Subtotal $ 6,843,000 212,000 3.2% $ 6,631,000 $ 5,644,000 Other InsuranceFund: General 79,000 (83,677) -51.4% 162,677 114,226 Fund: Highways 12,954 (9,697) -42.8% 22,651 14,773 Fund: Water and Sewer 12,937 (7,655) -37.2% 20,592 15,409

Subtotal $ 104,891 (101,029) -49.1% $ 205,920 $ 144,408 Medical ServicesFund: General 13,230 4,884 58.5% 8,346 - Fund: Highways 1,210 48 4.1% 1,162 - Fund: Water and Sewer 1,100 44 4.2% 1,056 -

Subtotal $ 15,540 4,976 47.1% $ 10,564 $ -

Total $ 14,197,789 $ 2,396,784 20.3% $ 11,801,005 $ 12,011,077


* None was budgeted in prior years; the totals are the actual amounts later appropriated and expended. FY2018 represents proposed assignments of Fund Balance.



Key Changes

• None

Open Audit Issues: None Budget Recommendations

• Other Post-Employment Benefits are not budgeted. We recommend the Administration include OPEB in the budget ordinance.


Operating Budget Some employee benefits are not included in the departments operating budgets. With the exception of Other Post-Employment Benefits (OPEB), these costs are not related to active County employees, so separating the costs from the departmental budgets appears reasonable. The budget includes: • Pensions for volunteer firefighters and Liquor Board employees • Unfunded portions of the County’s pension obligations • Worker’s Compensation for claims that exceed the County’s premiums • Unemployment Insurance costs for employees who have left County service • Death Benefits for beneficiaries of employees who die while employed by the County • Health and Life Insurance for Retirees Additionally, if the Health Care Consortium issues a return of health insurance premiums, that amount would be included in the “Other Health Insurance” category. OPEB costs are related to the current operating expense, but are not budgeted. Funds have been assigned for this use in the County’s fund balance, but that designation may be changed by the County Executive.

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