Fiscal Year 2013 Budget Work Begins

The Rockville Mayor and Council have begun work on the City’s Fiscal Year 2013 budget, receiving both a first budget preview and holding one public hearing for residents to share their thoughts on City spending last month.

A second budget preview, scheduled for Monday, Feb. 27, will give the Mayor and Council more opportunity to provide direction for the City Manager’s FY13 proposed Operating and Capital Improvements Program (CIP) budgets. Additional information about revenues and expenditures will be available to share with the Mayor and Council on Feb. 27.

On Jan. 23, the Mayor and Council received the first budget preview, including an overview of key expenditures and revenue estimates. The second part of that preview was held Jan. 30.

The General Fund is the primary operating fund of the City and is used to account for the majority of the City’s daily operations.

Many of the City’s core services and administrative functions are supported through the General Fund.

The major revenue sources for the General Fund include property taxes, income tax, county tax duplication, admission and amusement tax, hotel tax, and Highway User and Police Protection funds. These revenue sources total 78 percent of the FY12 adopted General Fund budget. FY13 revenue estimates will again be conservative and reflect the current economic conditions.

The General Fund supports more than 60 percent of the City’s total adopted FY12 budget. The known major cost drivers for the General Fund in FY13 include salaries and benefits, debt service and transfers to fund capital projects.

The adopted Fiscal Year 2012 operating budget is $107.2 million and the Capital Improvements Program budget totals $72.3 million.

The first budget presentation is available at www.rockvillemd.gov/budget. Visit the website to also learn about the current budget and its process.