Summaries Give Public a Look at the City’s Fiscal Health
Two annual reports released last month give the public a closer look at Rockville’s financial health during the most recently completed fiscal year.
For Fiscal Year 2022, which closed June 30, the city ended “with an overall net position of $328.7 million, an increase of 7% over last year,” City Manager Rob DiSpirito wrote in the city’s Popular Annual Financial Report, 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.
“The change in net position is based on increases in property tax revenue, income tax, and tax duplication revenues, coupled with conservative spending across City departments and programs,” DiSpirito wrote.
That left the city with a general fund reserve of $26.4 million, equal to approximately 31% of the total general fund adopted revenues, which is the main source of funding the city’s day-to-day operations.
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 recently renamed Annual Comprehensive Financial Report, which was presented to the Mayor and Council on Dec. 12. The ACFR is prepared by the Finance Department in accordance with generally accepted accounting principles and audited by certified public accountants.
The FY22 PAFR describes:
- The city government and services.
- Rockville demographics and statistics.
- 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 ACFR are available at www.rockvillemd.gov/budget. To view the ACFR presentation to the Mayor and Council, visit www.rockvillemd.gov/AgendaCenter and select the television icon next to the Dec. 12 meeting listing. To learn more, call the Finance Department at 240-314-8400.