Mayor and Council Adopt Budget Guidelines, Look to Next Step
The Mayor and Council will receive a final preview on the Fiscal Year 2012 budget at their meeting Monday, Feb. 28.

The Mayor and Council voted unanimously Jan. 18 to adopt the City Manager’s recommended guidelines for building the FY12 budget.

Prior to the Jan. 18 meeting Stepon the guidelines, the Mayor and Council received two budget previews
last fall and conducted a public hearing on the budget in December. More public hearings will be held in the spring.

“Achieving all of the budget guidelines is a challenge I welcome,” said Councilmember Bridget Donnell Newton. “Accomplishing such will require timely and accurate forecasting by our staff who in turn must rely on the same from the county and state. In creating a balanced budget, I look forward to considered and collegial discussions incorporating each of our viewpoints but most importantly those of the citizens of Rockville for whom we are the true stewards of their tax dollars.”

The first preview on Oct. 18 provided summary information for each of the City’s operating funds, including proposed rates and revenue and expenditure estimates.

The second preview on Nov. 8 focused on the results of a survey completed by the Mayor and Council, in which they indicated their early preferences for funding City programs and projects, as well as for the guidelines.

On Feb. 28, the final scheduled preview will again present revenue and expenditure estimates, but those estimates will be more definitive, which will help the Mayor and Council give more specific direction to guide the City Manager in developing the FY12 budget.

“I approach every budget from the perspective of serving the largest number of Rockville residents,” said Councilmember Piotr Gajewski. “That is why, for me, it is critically important to hear from as many people as possible about what they look for from their Rockville government. I do not want to have to guess.”

The budget guidelines the Mayor and Council adopted Jan. 18 for the General Fund are listed below.

General Fund Expenditure

• Increase annual employee compensation by 1 percent
• Maintain employee healthcare benefits
• Maintain the City’s annual required contribution to the pension fund
• Maintain the City’s annual required contribution to retiree health care
• Maintain programs and services at current levels
• Increase caregiver and outside agency funding by 1 percent, and continue with the competitive grant process
• Transfer at least $3 million to the City’s capital projects fund
• Fund the operating cost impacts from completed Capital Improvements Program projects
• Transfer $5.1 million to the City’s Debt Service Fund
• Transfer $1.2 million to the City’s Parking Fund

• Maintain property tax rates at 29.2 cents per $100 of assessed property value for real property and 80.5 cents for personal property
• Offer the Homeowners Tax Credit program
• Assume conservative revenues from other governments
• Assume $850,000 in Hotel Tax Revenue
• Assume $10 million in income tax revenue
• Assume interest earnings of 1 percent for the City’s investment portfolio
• Assume administrative charges consistent with the adopted Cost Allocation Plan
• Increase or decrease fees and charges consistent with the Financial Management Policies
  

How to Get Involved
You can tell the Mayor and Council your thoughts on the budget at any Citizens Forum during Mayor and Council meetings Mondays at 7 p.m., by e-mail to mayorcouncil@rockvillemd.gov and at public
hearings, currently set for April 4 and May 9.

To learn more about the FY12 budget, go to the “It’s Your Money” page on the City website at www.rockvillemd.gov/budget.