FY 2025 Financial Reports Highlight Rockville’s Finances
January 2, 2026
Summaries Give Public a Look at the City’s Fiscal Health
Two annual reports that are now posted online give the public a closer look at Rockville’s financial health during the most recently completed fiscal year.
For Fiscal Year 2025, which closed June 30, the city ended “with an overall net position of $375.5 million, an increase of 4.3 percent from the prior year,” City Manager Jeff Mihelich wrote in the city’s Popular Annual Financial Report, a summary document highlighting the city’s finances. Net position is a useful indicator of a government’s financial health and represents total assets minus total liabilities. “This growth was driven by higher property and income tax receipts, increased charges for services, and additional tax duplication revenue, paired with thoughtful, conservative spending across all departments,” Mihelich wrote.
The city ended the year with a general fund reserve of $31.8 million, equal to 29.2% of the FY 2025 general fund adopted revenue. The general fund is the main source of funding for the city’s day-to-day operations. The city maintains a tripleA bond rating. Triple-A is the highest possible rating and saves Rockville taxpayers money by allowing the city to borrow at the lowest possible interest rates.
The city created the first PAFR in 2007 to explain, in layman’s terms, information contained in Rockville’s since-renamed Annual Comprehensive Financial Report. The ACFR is prepared by the Finance Department in accordance with generally accepted accounting principles and audited by certified public accountants.
The FY25 PAFR describes:
- The city government and services.
- Rockville demographics and statistics.
- The city’s financial structure, including governmental funds, such as the general fund and the capital projects fund, and enterprise funds.
- The overall financial health of the city.
- The city’s capital investments and debt.
- Property taxes and utility rates, including how to read tax and utility bills.
The report also lists city accomplishments and accolades and spotlights “Rockville’s vision for a vibrant, accessible, and welcoming urban core” in its Town Center Master Plan. The PAFR and ACFR are available at rockvillemd.gov/financialreports.
Rockville Recognized for Excellent Financial Reporting
Rockville was proud to accept, for the 35th year in a row, the Certificate of Achievement for Excellence in Financial Reporting Award from the Government Finance Officers Association for Fiscal Year 2024. The award recognizes the excellence of the documents produced by the city’s Finance Department, including the city’s operating budget and capital improvements program, as well as the ACFR and PAFR. GFOA evaluates the reports for the information they present, reader appeal, understandability, distribution and other elements. Staff is confident that the FY25 reports will again earn this distinction.