Subject
title
Fiscal Year 2025 Budget Public Hearing #3
end
Department
Finance
Recommendation
Staff recommends that the Mayor and Council conduct the public hearing and keep the record open until April 12, 2024.
Discussion
The FY 2025 Proposed Operating Budget and Capital Improvements Program reflects industry best practices by presenting all budget information in an easy-to-read, user-friendly format, with a focus on how the City is achieving the Mayor and Council’s priorities in the upcoming year. The FY 2025 Proposed Budget is available online at www.rockvillemd.gov/budget. Also on the website is a link to the Excel version of the budget, which details the budget in a line item format.
There are three attachments to this public hearing item. These items are considered part of the public record and are provided alongside this staff report:
Attachment A: Interim Community Budget Priorities Survey Report
Attachment B: Public Testimony Summary
Attachment C: Public Testimony Exhibits
Operating Budget
The FY 2025 operating budget totals $168.9 million for the City’s 10 operating funds. This represents an overall increase of 7.4 percent from the FY 2024 adopted budget. The FY 2025 proposed budget focuses on the ongoing implementation of adopted plans, community safety and policing, and economic development. While there is revenue growth in the FY 2025 budget, it remains imperative that the City continue to allocate resources strategically, in alignment with Mayor and Council priorities, and in a manner that will be most impactful to the Rockville community.
Capital Improvements Program (CIP)
The FY 2025 proposed CIP budget includes new appropriations of $31.4 million to address the priorities of the Mayor and Council and residents of Rockville. This new funding combined with prior year carryover funding of $87.7 million, supports a total of 47 capital projects in FY 2025. There are two new projects presented in the FY 2025 through FY 2029 capital budget, which include the Maintenance Complex Emergency Generator Replacement (RA25) and Talbott Street Park (RB24). More information, including the total budget and timeline, can be found on the individual project sheets in the CIP Projects section of the budget document.
The CIP budget is funded by various sources, including paygo, grants, and proceeds from the issuance of loans and general obligation bonds. For FY 2025, staff anticipates the issuance of $12.9 million in new general obligation bonds for the F. Scott Fitzgerald Theatre ADA Improvements (RA20), Lincoln Park Community Center Improvements (RA22), and Outdoor Recreation Pool Renovations (RC18) projects. In addition, staff anticipates the issuance of $14 million in enterprise debt to support multiple capital projects in the Water and Sewer funds. An additional $5.1 million loan from the Maryland Department of the Environment (MDE) Drinking Water State Revolving Loan Fund (DWSRF) will support Water Main Rehab & Improvement (UD21) in FY 2025. In addition to loans, the DWSRF program has also provided a $1 million grant for a project within a Disadvantaged Community (DAC) census tract. Each year staff re-evaluates the need for issuing bonds with the goal of reducing the reliance on borrowing and increasing the reliance on ongoing resources or paygo support from the General Fund and the enterprise funds.
City Staffing
The total number of full time equivalent (FTE) positions in the FY 2025 operating budget equals 653.1, a net increase of 12.0 FTEs from the FY 2024 adopted level. The FY 2025 proposed budget includes an additional 15.1 regular FTEs over the FY 2024 adopted budget. The 15.1 FTE addition includes 3.0 FTEs that were previously unfunded, 6.0 FTEs for Police Officers, and 6.1 FTEs that promote efficient and effective service delivery. The 6.0 FTEs for Police Officers are required in response to reductions in Montgomery County Police Department’s support of Rockville. These additional officers are supported by a funding agreement with the County. The new regular positions for FY 2025 are as follows (position summary tables are included in the Supplemental Information section of the budget document):
Restored Positions - 3.0 FTEs
• 1.0 FTE Tree Climber (Recreation and Parks)
• 1.0 FTE Human Resources Associate (Human Resources)
• 1.0 FTE Information Systems Security Engineer (Information Technology)
Police Officer Positions (County funded) - 6.0 FTEs
New Positions for FY 2025 - 6.1 FTEs
• 0.5 FTE Board and Commissions Coordinator (Mayor and Council)*
• 1.0 FTE Senior Building Plans Examiner (Community Planning and Development Services)
• 0.5 FTE Fiscal Assistant (Finance)*
• 1.0 FTE Information Systems Engineer (Information Technology)
• 1.0 FTE Senior Transportation Engineer (Public Works)
• 0.5 FTE Senior Environmental Compliance Inspector (Public Works)
• 1.0 FTE Program Access Supervisor (Recreation and Parks)
• 0.6 FTE Preschool Teacher (Recreation and Parks)*
*Increases to existing positions
The new positions for FY 2025 are necessary to keep pace with the desired service level of the Rockville community, reflect the capacity needed to meet community safety needs, and promote the advancement of Mayor and Council priorities for the City.
The new positions specifically provide capacity to better support City Boards, Commissions and Task Forces, enhance plan review services in support of more streamlined economic development, and provide added resources to manage the growth in the City for disbursement volume and IT help desk support needs. The new positions also provide capacity that will advance Vision Zero and Pedestrian Master Plan initiatives, ensure compliance with the Safe Drinking Water Act, promote equitable access to City programs, and expand services at Rockville’s Montrose Discovery Preschool.
FY 2025 Budget Priorities
The overall budget priorities that resulted from the Mayor and Council’s FY 2025 budget discussions include: ongoing implementation of adopted plans, community safety and policing, and economic development. The City also continues to look for opportunities to improve equity and inclusion in the Rockville community and has provided funding in the FY 2025 budget for a new Pilot Enforcement Assistance Program which is designed to assist eligible community members with addressing code violations. The FY 2025 budget also includes funding for a new 1.0 FTE for a Program Access Supervisor Position. This position will establish a new Program Access Office and centralize recreation program modification requests to provide continuity and consistency for participants with disabilities across all programs. While there are other items funded in the FY 2025 budget, staff consider the summary below a highlight of priority areas and their intersection with the FY 2025 proposed operating and capital budgets.
Ongoing Implementation of Adopted Plans - The City is actively implementing action items identified in several major plans and policy documents that were adopted over the last few years.
• The Climate Action Plan - The FY 2025 budget provides $3.7 million in new appropriations for capital projects that address stormwater management, electric vehicle infrastructure, and LED streetlights. The budget also includes $300,000 for the Stormwater Incentive Program, $30,000 for annual facility energy efficiency audits, and continued resources for the continuation of the City’s composting program. The City’s first solar canopy installations are anticipated for FY 2025, and another 16 vehicles will be converted to electric in FY 2025.
• Vision Zero Action Plan and Pedestrian Master Plan - The FY 2025 budget provides $10.7 million in new appropriations for capital projects that address asphalt, concrete, bridges, sidewalks, shared-use paths, and LED streetlights. The budget also includes funding for a new 1.0 FTE Senior Transportation Engineer to help advance transportation-related projects in the City, as well as seek and execute transportation grants. An additional $50,000 was allocated for pavement marking and sign shop supplies to further advance pedestrian safety initiatives within the City.
Community Safety and Policing - The FY 2025 budget includes a focus on community safety which addresses the staffing, resources, and compensation needs of the Rockville City Police Department (RCPD). In response to staffing shortages, the Montgomery County Police Department (MCPD) announced a redeployment plan in FY 2024 that transferred six officers to other districts and shifted primary responsibility for service calls to RCPD, a responsibility that was previously shared between the agencies. The FY 2025 proposed budget includes an additional 6.0 FTEs for Police Officer positions, which will help RCPD adequately assume full and primary response duties within the City. These added positions are offset by funding from Montgomery County for salary, vehicle, and equipment costs for six officers.
In addition to the added positions, the City understands the importance of the recruitment and retention of RCPD officers. The City provided all RCPD officers with mid-year salary adjustments in FY 2024 and adjusted the hiring ranges for experienced lateral hires. The FY 2025 proposed budget will maintain the increased hiring ranges, provide cost of living adjustments and step increments, continue to provide resources for referral and hiring bonuses, and includes funding for a new police specialty pay differential for officers with specialized training and certifications. The FY 2025 budget also includes additional police training funds, which will help ensure that the department is equipped with the necessary knowledge and skills to meet the needs of the Rockville community. A new deferred retirement option program (DROP) which was approved in FY 2024 will be implemented in FY 2025 which will promote officer retention and assist with succession planning. In addition, the Mayor and Council approved a modification to the final average earnings pension calculation for police officers from 60 months to 36 months in FY 2024, and this enhanced benefit will also be implemented in FY 2025. The implementation of the DROP and the final average earnings modification will be funded through the City’s annual contribution to the pension plan.
The FY 2025 budget provides ongoing resources for the police mental health specialist contract and additional resources for internal investigations software and a new cloud-based interview room camera. A forthcoming budget amendment in FY 2024 will also provide resources for a $1.5 million replacement of all emergency communication police radios, which includes mobile radios in police vehicles and portable radios that are carried with each officer. The City expects that the transition to the new radios will occur in FY 2025 and ensure the continued dependability and responsiveness of the police department.
Economic Development - The City prioritizes economic development and recognizes the community benefits that span from job creation, neighborhood revitalization, and enhanced quality of life. Rockville Economic Development Inc. (REDI) is a public-private partnership formed by the City of Rockville to strengthen and broaden the City’s economic base through business entrepreneurship, expansion, retention, and recruitment programs. The FY 2025 proposed budget provides a total of $1.4 million to REDI which includes $175,000 for the MOVE and Business Expansion Fund and $150,000 for the Small Business Impact Fund, which has historically seen the majority of its applicants come from underrepresented communities. The $1.4 million allocation to REDI also includes an additional $48,630 for operating expenses and an additional $50,000 for the life sciences branding project, which will help enhance the business attraction of Rockville as a destination in the life sciences business sector.
In addition to the allocation to REDI, the FY 2025 budget includes the addition of a 1.0 FTE Senior Building Plans Examiner. This added position will improve economic development by promoting a timely and dependable building permitting program. The updated Town Center Master Plan has been underway and is anticipated for introduction and adoption in FY 2025, furthering the City’s commitment to strengthening neighborhood connections, providing a variety of land uses, encouraging business growth, and fostering welcoming public spaces. The Rockville Metro Station Visioning and Concept Design is also underway in partnership with the Washington Metropolitan Area Transit Authority (Metro) and Montgomery County. This initiative seeks to identify opportunities to increase transit ridership by improving site access and incorporating mixed-use development on Metro-owned property at the station and will continue into FY 2025 with public workshops and a final recommendation for Mayor and Council consideration.
Staff believe that the FY 2025 budget provides resources that ensure the continued provision of essential municipal services and that key enhancements to the budget will advance the priorities of the Mayor and Council, particularly for the ongoing implementation of adopted plans, community safety and policing, and economic development. The City maintains its commitment to advancing equity for the Rockville community and will continue to seek opportunities to expand outreach and engagement efforts across all platforms to ensure that decision-making is representative of the entire Rockville community. The next citywide resident survey is planned to occur in early FY 2025 and will provide an excellent source of feedback for the continued enhancement of City services and programs.
In addition to the items funded in the proposed FY 2025 budget, the budget ordinance includes a recommended commitment of reserves totaling $500,000 for the following one-time needs:
Ø $250,000 for outdoor fitness pool replastering,
Ø $150,000 for a comprehensive permit and fee study, and
Ø $100,000 for the development of a maintenance complex master plan.
Mayor and Council History
|
Date |
Action Item |
|
November 20, 2023 |
Public Hearing #1 Budget Process and Timeline Presentation |
|
December 4, 2023 |
Budget Priorities Discussion |
|
March 4, 2024 |
Presentation of Proposed Budget and Introduction of Ordinances and Resolutions |
|
March 18, 2024 |
Public Hearing #2 Budget Worksession #1 - Revenues, Fees, and Cost Recovery |
|
April 8, 2024 |
Budget Worksession #2 - Operating Expenditures |
Public Notification and Engagement
This public hearing was advertised in the Washington Post on February 29 and March 7, 2024. Information on the budget public hearing was included in the March and April editions of "Rockville Reports" and in the weekly "Rockville Reports" email newsletters on March 17, March 31, and April 7. It was posted to the City of Rockville’s website, the City of Rockville’s social media accounts, the cable channel 11 bulletin board, and RockvilleReports.com
This is the third and final public hearing related to the FY 2025 budget. In addition to public hearings, the public can submit written comments directly to the Mayor and Council via the City Clerk/Director of Council Operations through April 12, 2024.
The Rockville community is also encouraged to submit an online budget survey to communicate their budget priorities for FY 2025. This form is available in five languages (English, Spanish, Korean, French, and Simplified (Mandarin) Chinese) and will be posted through April 12, 2024. The survey can be found at www.rockvillemd.gov/budget <http://www.rockvillemd.gov/budget>.
The FY 2025 budget public record closes on April 12, 2024.
Fiscal Impact
The FY 2025 proposed operating budget appropriation by category and fund can be found in the Financial Summaries section of the budget document. The FY 2025 proposed CIP budget appropriation by fund, program area, and department can be found in the CIP Overview section of the budget document.
Next Steps
|
Date |
Action Item |
|
April 12, 2024 |
Close of the community budget priorities survey and public record |
|
April 15, 2024 |
Budget Worksession #3 - Capital Improvements Program |
|
May 6, 2024 |
Budget Adoption |