The Mayor and Council’s focus areas of public safety, economic development and housing form the foundation of a city budget that is up for adoption in May.
The budget for Fiscal Year 2026, which begins July 1, is scheduled for a Monday, May 5 vote. Mayor and Council meetings are broadcast on channel 11 on county cable and livestreamed at rockvillemd.gov/rockville11.
In March, City Manager Jeff Mihelich proposed an operating budget of $174.9 million, a 3.9% increase over the FY 2025 adopted budget. The Mayor and Council discussed changes to the proposal during work sessions on March 17 and 24, and April 7. They adjusted funding for community services and enrichment grants, and reserved $1.2 million in the city’s general fund for major initiatives to be considered during FY26, including $650,000 for the prospective Shady Grove Metro station annexation. The reserves will help mitigate risks associated with economic uncertainties facing the region.
About $10 million in new funding will support the city’s Vision Zero Action Plan and Pedestrian Master Plan. Other public safety items include a two-year closed-circuit television modernization initiative at city facilities, two new full-time civilian positions in the Rockville City Police Department, support for increased officer recruitment incentive programs and funding for RCPD’s annual gun buyback. More than $1.5 million will promote safety and quality in city drinking water and the water treatment plant.
The budget also includes $1.5 million for Rockville Economic Development, Inc.; five new full-time positions to support timely and efficient processing of plan reviews, permits and inspections, including the reinstatement of expedited building permit review processes.
Other initiatives include $1 million for the Housing Opportunities Fund to promote preservation and addition of affordable housing, launch an employee homeownership assistance program, and begin development of a homeownership down payment assistance program for community members. Two new full-time positions are included to help expand city housing programs.
As part of the budget work sessions, the Mayor and Council advanced the FY 2026-FY 2030 Capital Improvements Program, the five-year plan for funding construction and infrastructure maintenance that will support 65 projects during FY26. They also accelerated funding for the development of Talbott Street Park at the site of the decommissioned water tower at 200 Talbott St. The state recently approved a $200,000 bond bill for the project.
Under the budget, the city’s real property tax rate of $0.292 per $100 of assessed valuation would remain the same for FY26. It has not increased since 1995. All residential and commercial property owners pay this tax.
Visit rockvillemd.gov/AgendaCenter for video of Mayor and Council public hearings and work sessions, and the city manager’s budget presentation.
Find the adopted FY26 budget document — available in July, and more information at rockvillemd.gov/budget.