Subject
title
Adoption of a Resolution to Establish the Equivalent Residential Unit Rate to be Used in Calculating the Stormwater Management Utility Fee Pursuant to Chapter 19 Entitled "Sediment Control and Stormwater Management" of the Rockville City Code; and to Establish a Fee for Application for a Credit Against the Stormwater Management Utility Fee for Private Stormwater Management Facilities
end
Department
Finance
Recommendation
Staff recommends that the Mayor and Council adopt the Resolution to Establish the Equivalent Residential Unit Rate to be Used in Calculating the Stormwater Management Utility Fee Pursuant to Chapter 19 Entitled "Sediment Control and Stormwater Management" of the Rockville City Code; and to Establish a Fee for Application for a Credit Against the Stormwater Management Utility Fee for Private Stormwater Management Facilities.
Change in Law or Policy
Setting the stormwater management fee for FY 2026 requires the passage of the attached resolution.
Discussion
The City's stormwater management utility fee, which was established by ordinance in FY 2008, funds Rockville's stormwater, storm drainage, and water quality programs. This ordinance enables the City to charge an annual fee per Equivalent Residential Unit ("ERU").
All residential and commercial properties in the city are set to pay $159 per ERU per year, which is a $7 increase over the FY 2025 rate. Customers pay the stormwater management fee on their annual real property tax bill that comes from Montgomery County.
The Stormwater Management (SWM) Fund makes up 4 percent of the total operating budget, and supports 23.8 regular FTEs, all operating costs of the program, and 11 capital projects. The Fund supports the budgets for the Public Works Department and Non-Departmental. The SWM Fund's current debt will be retired in FY 2042. No bond issues are planned for FY 2026 or for the CIP planning period.
Forecasted operating and capital budgets are consistent with the requirements of the National Pollution Discharge and Elimination System (NPDES) general permit for Phase II Municipal Separate Storm Sewer Systems (MS4) that was issued in 2018.
Mayor and Council History
|
Date |
Action Item |
|
October 28, 2024 |
Public Hearing #1 |
|
March 17, 2025 |
Public Hearing #2 Introduction of Budget Ordinance M&C Worksession #1 - Strategic Initiatives, Reorganization, Revenues |
|
March 24, 2025 |
Public Hearing #3 Budget Worksession #2 - Operating Expenditures, Grants, Fund Balance |
|
April 7, 2025 |
Budget Worksession #3 - Operating Expenditures, CIP, Grants, Debt Review, and Final Balancing |
Public Notification and Engagement
The FY 2026 budget public record closed on April 7, 2025. The final public hearing was held on March 24, 2025.
The FY 2026 budget process included multiple opportunities for public input, including “Propose-A-Project” submissions, three budget public hearings, and offering written testimony to be included in the budget public record.
The Rockville community also submitted an online budget survey to communicate their budget
priorities for FY 2026. This form was available in 3 languages (English, Spanish, and Simplified (Mandarin) Chinese) and was posted through April 7, 2025. The final community budget priorities survey report is attached with the materials for budget adoption.
Fiscal Impact
The adopted FY 2026 operating budget for the Stormwater Management Fund equals $7,625,700 and the FY 2026 CIP budget equals $19,619,853. The adopted budget is based on a SWM rate of $159 per equivalent residential unit.
Next Steps
The FY 2026 adopted budget will begin July 1, 2025, and continue through June 30, 2026. The FY 2026 budget book will be posted to www.rockvillemd.gov/budget <http://www.rockvillemd.gov/budget> in July 2025.