Subject
title
Introduction of an Ordinance to Appropriate Funds and Levy Taxes for Fiscal Year 2027
end
Department
Finance
Recommendation
Staff recommends that the Mayor and Council introduce the Ordinance to Appropriate Funds and Levy Taxes for Fiscal Year 2027.
Change in Law or Policy
Adoption of the operating and capital improvements program (CIP) budgets will require passage of the standard budget ordinance. This budget ordinance is scheduled to be adopted on May 4, 2026.
Discussion
The attached ordinance (Attachment 1) is provided for introduction purposes only. As in prior years, this ordinance will undergo changes prior to adoption in May. This ordinance includes proposed real and personal property tax rates, as well as appropriated amounts by fund for the FY 2027 operating budget and CIP. The City Manager’s budget transmittal letter (Attachment 2) includes highlights and an overview of strategic initiatives included in the FY 2027 Proposed Budget.
General Fund Tax Rates
The Mayor and Council establish the tax rates each year in order to finance General Fund activities. For FY 2027, the city’s real property tax rate is proposed to remain unchanged at $0.292 per $100 of assessed value (note: the city has not increased its real property tax rate since 1995). The personal property tax rate is proposed to remain unchanged at $0.805 for every $100 of assessed value. In FY 2027, total property taxes are estimated at $53.8 million, or approximately 43 percent of the General Fund budget.
Parking District Tax Rate
In order to support the debt service costs of the three city-owned garages in Town Square, the Town Center Parking District was formed in 2007. The Parking District is a special taxing district that levies a real property tax on the commercial properties within the Town Square boundaries. The FY 2027 Parking District tax rate is proposed to remain flat at $0.33 per $100 of assessed value.
Impact Statements
Equity
The FY 2027 Proposed Budget advances equity by supporting affordable housing initiatives, maintaining financial assistance for recreation programs and memberships, and investing in community safety and neighborhood services that benefit residents across all income levels. Fee adjustments and utility rate changes are structured to support long-term service sustainability while preserving assistance programs for qualifying households.
Environment
The FY 2027 Proposed Budget supports environmental stewardship through continued implementation of the Climate Action Plan, investment in stormwater management and utility infrastructure, expansion of recycling in parks, the addition of electric vehicle fleet assets, and the introduction of a new building energy performance improvement project to the CIP. These initiatives strengthen resilience, reduce environmental impacts, and promote sustainable infrastructure planning.
Economy
The FY 2027 Proposed Budget reinforces the City’s economic stability by maintaining a flat property tax rate, supporting Rockville Economic Development, Inc. (REDI), and investing in infrastructure that sustains business growth and long-term competitiveness.
Mayor and Council History
|
Date |
Action Item |
|
November 10, 2025 |
Budget Public Hearing #1 Budget Timeline Presentation |
|
January 5, 2026 |
Mayor and Council Priorities Discussion |
Public Notification and Engagement
There are two more public hearings related to the FY 2027 budget (March 9 and March 23). In addition to these public hearings, the public can submit written comments directly to the Mayor and Council via the City Clerk/Director of Council Operations.
The Rockville community is also encouraged to submit an online budget survey to communicate their budget priorities for FY 2027. This form is available in three languages (English, Spanish, and Simplified (Mandarin) Chinese) and will be posted until April 13, 2026. The survey can be found at www.rockvillemd.gov/budget.
The FY 2027 budget public record closes on April 13, 2026.
Fiscal Impact
The FY 2027 proposed operating budget by category and fund can be found in the Fund Summaries section of the budget document. The FY 2027 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 |
|
March 9, 2026 |
Budget Public Hearing #2 FY 2027 Budget Introduction M&C Worksession #1 - Strategic Initiatives and Revenues |
|
March 23, 2026 |
Budget Public Hearing #3 M&C Worksession #2 - Operating Expenditures and Grants |
|
April 13, 2026 |
Close of the community budget priorities survey and public record M&C Worksession #3 - CIP, Changes, Final Balancing |
|
May 4, 2026 |
Adoption of FY 2027 Budget and Capital Improvements Program |