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Marylou Berg, Communication Manager, 240-314-8105
    

Rockville's Fiscal Year 2012 Budget Will Go into Effect July 1
Tax Rate Remains Unchanged for Fourth Consecutive Year

ROCKVILLE, Md., June 28, 2011 -The City of Rockville Fiscal Year 2012 operating budget and Capital Improvements Program (CIP) will go into effect Friday, July 1. The FY12 budget is the fourth consecutive year the tax rate will remain at 29.2 cents per every $100 of assessed property value. The Mayor and Council adopted the budget May 23.

The total operating budget of $107.2 million for fiscal 2012 is an increase of 2.2 percent from fiscal 2011. The General Fund budget is $66 million, which is an increase of 4.6 percent. The General Fund supports the largest portion of the operating budget and covers the cost of everyday government activities such as public safety, streets, parks and administration.

The fiscal 2012 Capital Improvements Program (CIP) is $72.3 million and supports 51 projects.

The FY12 budget includes the Homeowners' Tax Credit Program. This state administered program provides real property tax credits to low- and moderate-income residents for property taxes on their principal residence. Under the FY12 Program, households with gross incomes up to $85,000 per year and a household net worth of less than $200,000 (not including the value of the home or qualified retirement savings) could qualify for tax relief on the first $400,000 of their home's assessed value.

The FY12 budget includes $568,240, a 2.7 percent increase over FY11, in funding given to caregiver agencies. Rockville administers a grant program for local caregiver agencies and social services. The funding is distributed among 24 agencies that provide assistance to the community with basic needs related to housing, food, clothing, financial resources, health care and/ or family well-being.

Residents will see an increase in utility rates for water, sewer and stormwater services. The average annual cost for residents is as follows:

• Water - Increase of 24.5 percent from FY11. FY12 is the fourth year of a four-year plan for water rate increases that pay for a long-term project to upgrade the aging water system. 
• Sewer - Increase of approximately 13 percent or by 60 cents to $5.26 per 1,000 gallons. The sewer increase is necessary because the City's required payment to Blue Plains Advanced Wastewater Treatment Plant increased significantly.
• Stormwater - The stormwater rate will increase 27 percent from $49.20 to $62.48. This fee is a charge for service assessed for all property owners and is necessary for the City to comply with state and federal clean water requirements and to maintain stormwater conveyance and treatment systems.

The FY12 budget will be available online in mid-July at www.rockvillemd.gov/budget/.