Subject
title
Introduction of an Ordinance to Appropriate Funds and Levy Taxes for Fiscal Year 2026end
Department
Finance
Recommendation
Staff recommends that the Mayor and Council introduce the Ordinance to Appropriate Funds and Levy Taxes for Fiscal Year 2026.
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 5, 2025.
Discussion
The attached draft 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 2026 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 2026 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 2026, 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 2026, total property taxes are estimated at $51.6 million, or approximately 44 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 2026 Parking District tax rate is proposed to remain flat at $0.33 per $100 of assessed value.
Mayor and Council History
|
Date |
Action Item |
|
October 28, 2024 |
Public Hearing #1 |
Public Notification and Engagement
There is one more public hearing related to the FY 2026 budget (March 24). 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.
The Rockville community is also encouraged to submit an online budget survey to communicate their budget priorities for FY 2026. This form is available in three languages (English, Spanish, and Simplified (Mandarin) Chinese) and will be posted until April 7, 2025. The survey can be found at www.rockvillemd.gov/budget <http://www.rockvillemd.gov/budget>.
The FY 2026 budget public record closes on April 7, 2025.
Fiscal Impact
The proposed real and personal property tax rates and the appropriated amounts by fund for the FY 2026 operating budget and CIP are included in the attached ordinance (Attachment 1).
Next Steps
|
Date |
Action Item |
|
March 24, 2025 |
Public Hearing #3 M&C Worksession #2 - Grants, Fund Balance |
|
April 7, 2025 |
Close of the community budget priorities survey and public record M&C Worksession #3 - CIP, Changes, Final Balancing |
|
May 5, 2025 |
Budget Adoption |