Subject
title
FY 2027 Budget Public Hearing #2
end
Department
Finance
Recommendation
Staff recommends that the Mayor and Council conduct the public hearing and keep the record open until April 13, 2026.
Discussion
FY 2027 Operating Budget
The FY 2027 proposed operating budget totals $187.1 million across 10 funds, a 6.6 percent increase over the current fiscal year. Budget appropriations by Fund are shown below in Table 1 and include a comparison of appropriations in the FY 2026 Adopted Budget to the FY 2027 Proposed Budget.
Table 1 - Proposed FY 2027 and FY 2026 Budget Appropriations
|
|
Budget Appropriations |
|
Governmental Funds |
FY 2026 Adopted |
FY 2027 Proposed |
Change |
|
General |
117,087,900 |
125,461,800 |
7.2% |
|
Special Activities |
1,797,500 |
2,090,820 |
16.3% |
|
CDBG |
263,000 |
263,000 |
0.0% |
|
Speed Camera |
1,380,080 |
1,397,340 |
1.3% |
|
Debt Service |
3,342,000 |
3,340,000 |
-0.1% |
|
|
|
|
|
|
Enterprise Funds |
|
|
|
|
Water |
16,314,940 |
17,341,280 |
6.3% |
|
Sewer |
15,982,230 |
16,475,400 |
3.1% |
|
Refuse |
8,759,240 |
9,417,050 |
7.5% |
|
SWM |
7,625,700 |
8,268,320 |
8.4% |
|
Parking |
2,926,520 |
3,006,400 |
2.7% |
|
|
|
|
|
|
Total |
$ 175,479,110 |
$ 187,061,410 |
6.6% |
Governmental funds are those through which most governmental functions of the city are financed. The acquisition and use of the city’s expendable financial resources (except for those accounted for in the enterprise funds) are accounted for through governmental funds. The city’s governmental operating funds are the General Fund, the Special Activities Fund, the Community Development Block Grant Fund, the Speed Camera Fund, and the Debt Service Fund. The city has one nonmajor blended component unit, Rockville Economic Development, Inc. (REDI) which is budgeted as a cost center within the General Fund for the city's annual contribution to REDI. The taxpayer-supported General Fund is the largest component, constituting 67.1 percent or $125.5 million of the total budget. The proposed budget maintains the current property tax rate and assumes that the rate will remain flat throughout the forecast period.
Enterprise funds, including Water, Sewer, Refuse, Parking, and Stormwater Management, account for approximately 29 percent of total appropriations or $54.5 million and operate in a manner similar to private business enterprises, with expenses recovered through user fees rather than general taxation.
FY 2027 Capital Improvements Program (CIP)
The FY 2027 proposed CIP budget includes new appropriations of $35.2 million to address the priorities of the Mayor and Council and residents of Rockville. This new funding combined with prior year carryover funding of $93.1 million, supports a total of 56 capital projects in FY 2027. CIP appropriations by Program Area are shown below in Table 2 and include a breakout of carryover funding and additional new appropriations.
Table 2 - Proposed FY 2027 CIP Appropriations Summary by Program Area
|
|
CIP Appropriations |
|
Program Area |
Carryover Funding |
New Funding |
Total FY 2027 Appropriations |
|
General Government |
4,432,396 |
1,991,140 |
6,423,536 |
|
Recreation and Parks |
10,642,637 |
8,315,840 |
18,958,477 |
|
SWM |
19,046,814 |
1,094,000 |
20,140,814 |
|
Transportation |
19,192,172 |
14,105,820 |
33,297,992 |
|
Utilities |
39,744,171 |
9,688,000 |
49,432,171 |
|
|
|
|
|
|
Total |
$ 93,058,190 |
$ 35,194,800 |
$ 128,252,990 |
There are seven new discrete projects presented in the FY 2027 through FY 2031 capital budget, which are listed here along with a basic description (note: not all new projects are funded or are scheduled for FY 2027).
• Building Energy Performance Improvements (NEW1) - This project plans, designs, and implements building energy improvements at city facilities to support compliance with Montgomery County and Maryland Building Energy Performance Standards (BEPS) and implementation of the Climate Action Plan
• Civic Center Maintenance Yard Improvements (NEW2) - This project enhances the security, functionality, and sustainability of the Civic Center Maintenance Yard.
• King Farm Farmstead Park Master Plan Implementation - Phase 1 (NEW3) - This project funds the implementation of phase one of the King Farm Farmstead Park Master Plan including design and renovation of the main farmhouse and Dairy Barns, and a bridge that will connect the two Dairy Barns.
• Woottons Mill Park Pavilion Plan (NEW4) - This project funds the construction of a park pavilion in Woottons Mill Park based on the results of the feasibility study commissioned in October 2025.
• Stream Restoration: Woottons Mill Park (NEW5) - This project designs and constructs stream restoration within Woottons Mill Park, beginning at Watts Branch Parkway and at Hurley Avenue, continuing downstream to Wootton Parkway.
• Shady Grove WMATA Access Road Streetlighting (NEW6) - This project designs and constructs streetlights on the WMATA Access Road between MD 355 and Somerville Road at the Shady Grove Metro Station. The roadway is used by pedestrians, bicyclists, and commuters from the King Farm neighborhood.
• Water Treatment Plant Storm Drain and Culvert Rehabilitation (NEW7) - This project rehabilitates a metal storm drain within the Water Treatment Plant and rehabilitates and protects five stream culverts between the Water Treatment Plant intake structure at the Potomac River and the plant necessary to protect the raw water pipe and electrical and communication lines.
The CIP budget is funded by various sources, including paygo, grants, and proceeds from the issuance of loans and general obligation bonds. For FY 2027, staff does not anticipate the issuance of new general obligation bonds. Water and Sewer bonds are currently planned for FY 2028 based on anticipated capital spending. Each year staff reevaluates 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.
In addition to the capital funding needed to complete a CIP project, many projects require ongoing funding to operate or maintain the completed project. Ongoing operating cost impacts must be considered when determining if and when to include a particular project in the CIP. For FY 2027, a net total of $144,650 is added to the operating budget as a result of five current CIP projects.
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
This public hearing was advertised in the Washington Post on February 19 and March 5, 2026. It was posted to the City of Rockville’s website and social media accounts, as well as in the February and
March editions of “Rockville Reports” and the cable Channel 11 bulletin board.
There is one more public hearing related to the FY 2027 budget (March 23). 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 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 <http://www.rockvillemd.gov/budget>.
The FY 2027 budget public record closes on April 13, 2026.
Fiscal Impact
The FY 2027 proposed operating budget appropriation by category and fund can be found in the Financial 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 |
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 |