Property Tax Rate Remains Constant for 12th Consecutive Year
Rockville, Maryland, May 7 – Rockville residents will pay the same property tax rate as they have for the last 11 fiscal years, after the Mayor and Council on Monday approved a $138.9 million operating budget for Fiscal Year 2020.
The budget, which will fund city operations from July 1, 2019 through June 30, 2020, includes funding for the equivalent of four new full-time and one new part-time position. It also includes a 1% cost-of-living adjustment and an average 3.5% step or merit increase for all regular employees, increases in wages for temporary employees to remain competitive with neighboring jurisdictions, and increases in overtime, mostly attributed to police.
The adopted budget includes a contribution to the city’s reserve funds of just over $1 million, which the Mayor and Council set aside as a fiscally responsible and strategic nod to the future of the city’s revenues and expenses.
The FY 2020 operating budget of $138.9 million is an increase of 2% over the FY 2019 operating budget. The general fund budget, which supports the largest portion of the operating budget, is $84.2 million, a 2.2% increase.
The city’s current tax rates of $0.292 per $100 of assessed valuation for real property and $0.805 per $100 of assessed valuation for personal property will remain the same for FY20. All residential and commercial property owners pay the real property tax.
The adopted budget includes increases to average residential bills for water and sewer. These rate increases are necessary to repair and replace aging water and sewer pipes and other infrastructure vital to providing these services, and for required payments to the Washington Suburban Sanitary Commission related to a regional wastewater treatment plant. For the city’s water and sewer customers, water rates for a residential property with a 3/4-inch meter and 16,000 gallons of usage will increase approximately 5.4%. Sewer rates for the same property will increase 6.9%. Recycling and trash service will remain at $445 per household per year. The stormwater management rate will remain at $132 per year.
The FY 2020-FY 2024 Capital Improvements Program, the five-year plan for funding new construction and infrastructure maintenance, totals $77.6 million, an increase of 14.7% from FY19, to support 43 projects during the fiscal year. It includes a $6.8 million transfer from the general fund and two newly-funded projects:
- Renovations to the Rockville Swim and Fitness Center’s outdoor recreation pool, tot pool, sprayground, outdoor pool filter room, overhead pool lights and deck areas, and replacement of the water slide tower and flume. The FY20 funding is for concept design only.
- Street and sidewalk improvements in the Stonestreet Avenue corridor near the Rockville Metro Station, including traffic signal reconstruction at South Stonestreet Avenue and Park Road, and improvements to North Stonestreet between Park Road and Lincoln Avenue. The FY20 funding is for concept design and right-of-way acquisition.
The Mayor and Council held three work sessions and three public hearings about the budget and solicited ideas from the public through the city’s website.
To learn more about the city’s FY20 budget, visit www.rockvillemd.gov/budget or call the Finance Department at 240-314-8400.
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Director of Communication