The Mayor and Council are scheduled to vote in May on the adoption of a city budget that focuses on several Mayor and Council priorities and addresses recovery from the COVID-19 pandemic.
The Mayor and Council discussed changes to the proposed budget during work sessions on March 21, April 18 and April 25, including newly projected increases in revenues from the admissions and amusement tax, and the highway user tax.
They also discussed options for funding positions, programs and initiatives, as well as the use of special funding from the American Rescue Plan Act, supplemental tax duplication funds, and excess general fund reserves. ARPA provides relief funds to aid state and local governments to help offset budgetary, economic and financial impacts of the pandemic. Supplemental tax duplication funds are used to reimburse incorporated towns and cities for property tax duplication collected by Montgomery County. By policy, the city seeks to maintain reserves of at least 20% of the annual adopted general fund revenues. The Mayor and Council may use excess reserves to provide pay-as-you-go financing for capital projects, to fund other one-time items, or to make additional contributions for pension or other retirement benefit liabilities for city employees. The Mayor and Council considered capital projects and initiatives addressing infrastructure maintenance, public safety, emergency planning and Vision Zero.
City Manager Rob DiSpirito on Feb. 28 presented a proposed operating budget of $148.6 million, an increase of 5.2% over the Fiscal Year 2022 adopted budget. The budget for Fiscal Year 2023, which begins July 1, is expected to benefit from a sizeable increase in tax duplication revenue. Planned spending addresses Mayor and Council priorities such as implementing the Comprehensive Plan, environmental sustainability and the Climate Action Plan, Vision Zero, economic development, financial sustainability and pandemic recovery.
Find the adopted FY23 budget book, beginning in July at www.rockvillemd.gov/budget. For Mayor and Council agendas, visit www.rockvillemd.gov/AgendaCenter.