Summaries Look at the City’s Fiscal Health
Two annual reports that city staff delivered to the Mayor and Council on Dec. 7 give the public a closer look at Rockville’s financial health during the most recently completed fiscal year.
For Fiscal Year 2020, which closed June 30, the city ended “with a healthy overall net position of $293.4 million,” City Manager Rob DiSpirito wrote in the city’s Popular Annual Financial Report (PAFR), a summary document highlighting the city’s finances. Net position is a useful indicator of a government’s financial health and represents total assets minus total liabilities.
“Our FY 2020 financial position remained strong, despite some revenues coming in under budget as a result of the COVID-19 pandemic. Due to our rapid response to restrict all nonessential spending and institute a hiring freeze, the general fund reserve ended the year at $22 million, which is $5.1 million above the current reserve target,” DiSpirito wrote.
The city maintains a triple-A bond rating. Triple-A is the highest possible rating and saves Rockville taxpayers money by allowing the city to borrow at the lowest possible interest rates.
The city created the first PAFR in 2007 to explain, in layman’s terms, the information contained in Rockville’s Comprehensive Annual Financial Report (CAFR). The CAFR is prepared by the Finance Department in accordance with generally accepted accounting principles and audited by certified public accountants.
The FY20 PAFR describes:
- The city government and services.
- The city’s financial structure, including governmental funds, such as the general fund and the capital projects fund, and enterprise funds.
- The overall financial health of the city.
- The city’s capital investments and debt.
- Property taxes and utility rates, including how to read tax and utility bills.
The PAFR and CAFR are available at www.rockvillemd.gov/budget. To view the presentation to the Mayor and Council, visit www.rockvillemd.gov/AgendaCenter and select the television icon next to the Dec. 7 meeting listing.
To learn more, call the Finance Department at 240-314-8400.