Subject
title
Adoption of a Resolution to Establish the Service Charge Rate for Municipal Refuse Collection and to Establish a Charge for Unreturned Refuse and Recycling Carts Pursuant to Section 20-6 of the Rockville City Code
end
Department
Finance
Recommendation
Staff recommends that the Mayor and Council adopt the Resolution to establish the service charge rate for Municipal Refuse Collection, and to establish a charge for unreturned refuse and recycling carts pursuant to Section 20-6 of the Rockville City Code.
Change in Law or Policy
Setting the refuse rate for FY 2026 requires the adoption of the attached resolution.
Discussion
The Refuse Fund accounts for the financial activity associated with the collection and disposal of residential recycling, refuse, and yard waste. The City currently operates a once-per-week refuse pickup and a single-stream recycling program. For FY 2026, the rate is set to increase by 5.6 percent, or $30 per year, to $565 per single-family residence. Customers pay for recycling and refuse services on their annual real property tax bill that comes from Montgomery County.
The Refuse Fund makes up 5 percent of the total operating budget, supports 37.2 regular FTEs, one capital project, and all operating costs of the program. The Fund supports the budgets for the Public Works Department and Non-Departmental. The Refuse Fund's current debt will be retired in FY 2026. No additional bond issues are planned at this time.
There is $719,618 appropriated in the CIP for the installation of a new recycling transfer enclosure at the Gude Drive Maintenance Facility. The recycling transfer enclosure will allow City trucks to transfer recycling to trailers for haul-off. This enclosure moves the transfer work under cover, provides fire suppression, stops windblown material on the maintenance yard and surrounding properties, and expands recycling program efficiency. This project was originally fully supported by the Refuse Fund, but the Mayor and Council decided to allocate a portion of the American Rescue Plan Act (ARPA) funds to support this initiative.
Mayor and Council History
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Date |
Action Item |
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October 28, 2024 |
Public Hearing #1 |
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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 Refuse Fund equals $8,759,240 and the FY 2026 CIP budget equals $719,618. The adopted budget is based on a refuse rate of $565 per year.
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.