Subject
title
Introduction and Possible Adoption of an Ordinance to amend Ordinance No. 5-24 to appropriate funds and levy taxes for FY 2025 (Budget Amendment #1)
end
Department
Finance
Recommendation
In accordance with the City Charter, since the budget ordinance is adopted at the fund level, a change in the appropriated amount of any fund requires action by the Mayor and Council. The vehicle for such action is an amendment to the budget ordinance. The proposed ordinance, Attachment A, would amend the FY 2025 budget. The FY 2025 budget was adopted by the Mayor and Council on May 6, 2024.
If the Mayor and Council wish to proceed with adoption of the ordinance at the same meeting, the ordinance should first be introduced and then a motion should be made to waive the layover period. If the motion to waive the layover period is approved by an affirmative vote of six or more members of the Mayor and Council, a motion to adopt the ordinance may then proceed.
Discussion
The proposed ordinance, Attachment A, would amend the FY 2025 budget. This amendment recognizes the items described below and shown on Attachment B.
Operating Budget Adjustments (General Fund unless otherwise noted)
• Maryland Energy Administration (MEA) grant to implement LED lighting upgrades at Thomas Farm Community Center (TFCC) ($63,000 revenue; $92,000 expenditure)
• Department of Energy (DOE) Energy Efficiency Community Block Grant (EECBG) to:
o Install solar on the rooftop at Lincoln Park ($109,900 revenue and expenditure)
o Replace an existing landscape equipment trailer with an electrified landscape trailer to transition a landscape crew from gas-powered to electric equipment ($24,150 revenue; $26,120 expenditure)
• Recreation and Parks program and facility adjustments including an increase in estimated Civic Center facility rental revenue and funding for an additional weekend custodian (temporary staff); expansion of the TFCC Adventure Kids summer camp; and funding for memorial park benches. Donations for the memorial park benches were received in FY 2024, but the costs ($8,000, equal to the donations) will be incurred in FY 2025. ($67,000 revenue; $55,550 expenditure)
• Funds to purchase gift cards for a gun buyback event planned for August 17th at Redgate Park, supported by a $5,000 contribution from the State’s Attorney’s Office, $18,000 in confiscated funds, and $2,000 in General Fund contingency, which is already included in the appropriated budget ($23,000 revenue and expenditure)
• Reserve commitments included on the FY 2025 adopted budget ordinance totaling $1,150,410 for the following items:
o Retiree 1% COLA ($650,410 General Fund, $796,420 all funds total; see breakdown by fund on Attachment B)
o Maintenance Complex Master Plan ($100,000)
o Development and Permit Fee Study ($150,000)
o Fitness Pool Replastering ($250,000)
• Re-appropriation of funding for replacement police radio equipment, partially offset by a federal earmark. Notice of the federal earmark award was received after this funding was added to the FY 2024 budget. The procurement process requires additional time when federal funds are involved, so this funding was not able to be encumbered by the end of FY 2024 and must be re-appropriated. ($963,000 revenue; $1.2 million expenditure)
• One-time supplemental tax duplication revenue for police services ($357,350 revenue)
Capital Improvements Program (CIP) Budget Adjustments (Capital Projects Fund unless otherwise noted)
• LED Streetlight Conversion (TA22) grants totaling $255,200 as follows:
o MEA grant for Phase 2 ($124,600 revenue and expenditure)
o MEA Streetlight & Outdoor Lighting Efficiency (SOLE) program grant for Phase 3 ($130,600 revenue and expenditure)
• Maryland Department of Natural Resources Community Parks and Playgrounds grant for Potomac Woods Park playground replacement in the Playground Structure Replacement (RC21) project. This replacement has been completed and the revenue has been received. This amendment recognizes the grant funding within the project budget, freeing current funds for other needed replacements. ($185,000 revenue and expenditure)
• MEA grant for $48,000 for the Electric Vehicle Instructure (GA23) project to install up to eight fleet electric vehicle charging ports at the Rothgeb Maintenance Facility and Recreation Services Building at the Rockville Civic Center Complex (no change in appropriation; offset by reduction in existing paygo funding)
• FEMA Flood Mitigation Assistance Grant for the development of the city’s Flood Resiliency Master Plan (SA23) ($700,000 SWM Fund revenue and expense)
Mayor and Council History
This is the first budget amendment for FY 2025. The FY 2025 budget was adopted by the Mayor and Council on May 6, 2024.
Fiscal Impact
The following operating fund(s) will be adjusted if this budget amendment is adopted.
TABLE 1
|
Operating Fund |
Adopted Budget |
8/5/2024 Amendment |
Amended Budget |
|
General Fund |
$109,081,850 |
$2,757,810 |
$111,839,660 |
|
Water Fund |
$15,827,850 |
$46,510 |
$15,874,360 |
|
Sewer Fund |
$15,546,630 |
- |
$15,546,630 |
|
Refuse Fund |
$8,902,760 |
$37,140 |
$8,939,900 |
|
Parking Fund |
$2,791,920 |
- |
$2,791,920 |
|
Stormwater Mgt Fund |
$7,319,350 |
- |
$7,319,350 |
|
Special Activities Fund |
$2,838,210 |
- |
$2,838,210 |
|
CDBG Fund |
$263,000 |
- |
$263,000 |
|
Speed Camera Fund |
$1,305,930 |
$1,590 |
$1,307,520 |
|
Debt Service Fund |
$4,455,600 |
- |
$4,455,600 |
|
Total |
$168,333,100 |
$2,843,050 |
$171,176,150 |
The following Capital Improvements Program (CIP) fund(s) will be adjusted if this budget amendment is adopted:
TABLE 2
|
CIP Fund |
Adopted Budget |
8/5/2024 Amendment |
Amended Budget |
|
Capital Projects Fund |
$63,912,767 |
$440,200 |
$64,352,967 |
|
Water Fund |
$22,094,904 |
- |
$22,094,904 |
|
Sewer Fund |
$12,132,725 |
- |
$12,132,725 |
|
Refuse Fund |
$741,022 |
- |
$741,022 |
|
Stormwater Mgt Fund |
$17,867,082 |
$700,000 |
$18,567,082 |
|
Special Activities Fund |
$1,509,109 |
- |
$1,509,109 |
|
Speed Camera Fund |
$1,178,470 |
- |
$1,178,470 |
|
Total |
$119,436,079 |
$1,140,200 |
$120,576,279 |