Restricted Funds

Restricted funds are legally restricted to spending for special purposes, such as providing water and sewer services and trash collection.

The collective budget for the County's Restricted Funds in FY2024 is $670.1 million.

Special Revenue Funds

These funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for special purposes. The County uses a number of revenues for specific purposes only. For example, the County’s 1.25 percent transfer tax pays for specific activities including agricultural land preservation, park acquisition and development, community renewal, school site acquisition and construction, and fire protection. Below is a brief summary of the County’s special revenue funds.

Agricultural Preservation Fund ($19.4M)
This fund supports the Agricultural Land Preservation and Promotion Program, which is designed to preserve the open character and agricultural use of land in the County. Funding mainly comes from 25% of the local transfer tax collections.

Commercial Paper Bond Anticipation Note ($3.2M)
Included in this fund are all costs and revenues of the program, which enables the county to borrow for capital construction programs at the lowest interest rates instead of using general funds. Revenue in excess of cost is returned to the general fund as investment income.

Community Renewal Program Fund ($27.7M)
This fund was created to provide affordable housing opportunities for residents of all income levels. Funding primarily comes from 12.5% of the local transfer tax collections.

Disposable Plastics Reduction Fund ($1.2M)
This is a non-reverting fund that accounts for the revenues collected from a 5 cents fee imposed on each disposable plastic bag sold at a store and the costs of administering the program.

Environmental Services Fund ($36.8M)
Fees collected from users for trash collection, recycling and landfill are dedicated to this fund to offset the cost of waste collection, disposal and recycling expenses including the operation of the County landfill operation.

Fire and Rescue Tax Fund ($161.2M)
This fund provides for the operation of the Department of Fire and Rescue with a tax of 23.6 cents on real property and 59.0 cents on personal property.

Forest Conservation Fund ($0.7M)
This fund allows the County to provide forest mitigation and reforestation inspections in compliance with local and State requirements and revenues from developers are used to cover expenses.

Grants Fund ($60.7M)
Used to account for resources provided to the County by another government (or other source) and usually designated for a specific purpose.

Housing Opportunities Trust Fund ($5.0M)
This is a non-reverting fund to be used to promote equitable access to affordable housing for households of limited income in the County.

Opioid Abatement Fund ($1.5M)
This is a non-reverting fund that accounts for the County’s share of settlement proceeds from opioid manufacturers and others in the industry and the permitted use of the funds as outlined in State law.

Program Revenue Fund ($9.3M)
Programs included in this fund, which are used by various agencies, are supported by the revenues collected for the services provided.

Recreation and Parks Fund ($24.6M)
This fund supports fee-based recreational programs, services and events for the community. The proceeds cover the costs of administering recreational childcare programs, summer camps and sports leagues. The fund is also used for maintenance of athletic fields, pavilions, parks and historic sites throughout the county.

Savage Special Tax District ($0.2M)
This fund is used to collect any special taxes imposed on property owners in the Savage Towne Centre Tax Increment Financing District when incremental property tax collections are insufficient to meet the debt service obligation on bonds issued to fund infrastructure improvements in the district.

School Bus Camera Fund ($3.2M)
This fund allows the Department of Police to administer a School Bus Camera program to increase safety of students boarding school buses on county roadways in compliance with local and State requirements. The fund receives revenues from citations paid by motor vehicle operators passing stopped school buses in process of boarding students on designated roadways.

Speed Enforcement Fund ($1.9M)
This fund allows the Department of Police to implement a speed enforcement program to increase public safety on county roadways in compliance with local and State requirements. The fund receives revenues from fines paid by motor vehicle operators exceeding the posted speed limits on designated roadways. Funds in excess of those needed to operate the program can be used for other public safety uses in the capital and operating budget.

Tax Increment Financing Fund ($5.0M)
This fund is used to collect the incremental property tax revenues on real property located in the Annapolis Junction Town Center and Crescent (Downtown Columbia) Tax Increment Financing Tax Districts and pay the debt service on the Special Obligation bonds issued to fund infrastructure improvements in these districts.

Trust and Agency Multifarious Fund ($0.5M)
This fund, used by several county agencies, allows for adequate accounting and control of escrow accounts, while at the same time permitting residents contributions for special purposes.

Enterprise Funds

Some government operations are financed and managed in a manner similar to a private business enterprise and are fully supported from user fees and charges. Separate funds are established to account for these government operations. Below is a brief summary of the County’s enterprise funds.

Broadband Initiative Funds ($3.0M)
The County has three Broadband funds (County Government, Non-County Government, and Private Sector) used to manage the delivery of broadband services. Revenues generated come from negotiated fees and charges for services provided.

Recreation Special Facilities Fund ($0.3M)
This fund accounts for the operation and management of the Timbers at Troy golf course.

Shared Septic Fund ($1.4M)
This fund pays for the operation and maintenance of small private shared septic systems located in the western part of the County. The systems are installed by developers but maintained by the County. Households pay for the operation and maintenance costs.

Water and Sewer Operating Fund ($84.1M)
This fund pays for the operation and maintenance of the County’s water and reclaimed water sewer systems. The County does not own or operate any water supply facilities but instead purchases 95% of its potable water from Baltimore City and 5% from the Washington Suburban Sanitary Commission. The money to fund services comes primarily from user charges.

Water/Sewer Special Benefits Charges and Capital Projects Fund ($52.8M)
This fund collects monies to finance water and sewer projects, including debt service.

Watershed Protection and Restoration Fund ($16.2M)
This fund is designed to provide a sustainable dedicated revenue source from the annual stormwater remediation fees to fund the maintenance, operations and improvement of local stormwater management system.

Internal Service Funds

These funds are used to account for goods and services furnished by certain County agencies to other County agencies primarily on a cost reimbursement basis. The County has the following four internal service funds.

Employee Benefits Fund ($73.8M)
This fund provides a mechanism for central pooling of County government employee benefits’ costs, including health and disability insurance. The general and other restricted funds, commercial insurance and/or self-insured claims payments are paid out of this fund.

Fleet Operations Fund ($29.2M)
The Central Fleet Operations Division is responsible for the purchase, operation, and maintenance of all county vehicles. Revenue to operate Fleet Operations is generated from charges to the users. Included are the salaries of the mechanics who maintain county vehicles, the cost of supplies and depreciation on all vehicles maintained by the bureau.

Risk Management Fund ($12.2M)
This fund combines county government risk management activities including: Workers’ Compensation, General, Auto, Property, and Environmental Liability and Risk Management Administration. The County insures these exposures with an appropriate combination of self-insurance and purchased excess insurance. The County Library System, Community College, Economic Development Authority and Housing Commission participate in the Risk Management Fund.

Technology and Communications Fund ($35.2M)
This fund charges the cost of central data processing operations, geographical information, records management services, radio maintenance and telephone services to county agencies. These costs are charged to county agencies utilizing the system/services through charge backs paid to this fund.

Restricted Funds

Restricted Funds

Types of Restricted Funds

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