Summaries Give Public a Look at the City’s Fiscal Health
Two annual reports approved by the Mayor and Council last month give the public a closer look at Rockville’s financial health during the most recently completed fiscal year.
For Fiscal Year 2024, which closed June 30, the city ended “with an overall net position of $360 million, an increase of 4.3% over last year,” City Manager Jeff Mihelich 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, charges for services revenues, and tax duplication revenues, coupled with conservative spending across city departments and programs,” Mihelich wrote.
The city ended the year with a general fund reserve of $31.2 million, equal to 30.7% of the FY 2024 general fund adopted revenue. The general fund is the main source of funding for the city’s day-to-day operations.
The city maintains a triple-A bond rating, the highest possible, which 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 since-renamed Annual Comprehensive Financial Report. The ACFR is prepared by the Finance Department in accordance with generally accepted accounting principles and audited by certified public accountants.
The FY24 PAFR describes:
- 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 report also lists city accomplishments and accolades, and spotlights public safety efforts, including a police-staffing action plan and the Rockville City Police Department’s five-year strategic plan.
The PAFR and ACFR are available at www.rockvillemd.gov/budget. To learn more, visit www.rockvillemd.gov/AgendaCenter and select the staff report with the Dec. 9 Mayor and Council agenda, or call the Finance Department at 240-314-8400.