Rockville Adopts Budget On 3-2 Vote

>Our friends at the Gazette have a very good recap of the details on the Mayor and Council’s vote Monday night to adopt a new budget for Our Fair City. The vote was three-two in favor:

The City Council on Monday narrowly adopted Rockville’s fiscal 2010 budget with an operating budget that is nearly 1 percent less than fiscal 2009 while including salary increases for all city employees.

The adopted operating budget is $101.8 million, a decrease of 0.9 percent, or $893,705.

The Capital Improvements Program is budgeted at $68.2 million, a decrease of nearly $5.5 million over last year.

Councilwoman Anne M. Robbins and Councilwoman Phyllis R. Marcuccio voted against the budget, with Robbins saying her opposition is primarily due to the cost-of-living and merit increases for city employees totaling $1.78 million that is included in the budget, a concern she has raised throughout the budget process. . . . Marcuccio’s concern was with the budget process and said she still had outstanding issues that were not addressed.

“The process we use on the budget I’m sure is very efficient and very thorough as far as the staff is concerned, but it’s not very satisfying as far as a council member is concerned,” Marcuccio said.

Rockville City Staff Present FY10 Budget Outlines

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The first budget hearing is slated for March 30 at the Mayor and Council meeting.

Get Ready For A New Budget!

Arguably the most important task that the Mayor and Council perform is nigh upon us — and that is developing, guiding, and approving the annual budget for Our Fair City.>

The process will be kicked off later this month, with an introduction at the March 23 meeting of the Mayor and Council.

Following that, there will be a number of public hearings as well as worksessions, culminating in a hoped-for budget adoption on May 18. That’s a compressed timeline and the choices to be made in this faltering economy will likely be tough ones.

So it’s important for people to pay attention. At Rockville Central, we will try to do our part and make sure readers have access to information they need to understand the process. We are also calling on any and all readers to send us information and opinions on how the budget process is going, thoughts for improvements, and other ideas. Let’s work to make this as collaborative as possible!

Budget Hearing Tonight At City Hall

As >Rockville Central readers — and others — know, it’s budget time here in Our Fair City.

Tonight is the last of two public hearings on the City Manager’s proposed budget. It’s at 7pm, at City Hall. After tonight, there is one “work session” left on May 5 (that’s not a public input session, so tonight’s your main chance to get your views heard).

The budget is slated to be adopted on May 19.

The City issued a good overview press release on the main contours of the budget late last month:

Rockville City Manager Scott Ullery is recommending a $103.9 million all funds operating budget for fiscal year (FY) 2009, which begins on July 1, 2008. The proposed budget represents an increase of 10.7 percent from the adopted FY08 budget. The FY09 budget includes $62.4 million for the General Fund (a 5.9 percent increase over the FY08 adopted budget). The proposed property tax rate remains unchanged at 30.2 cents per $100 of assessed value for real property, and three tax relief measures amounting to $1.8 million are recommended. The recommended budget includes $24.1 million in new spending authority for capital improvement program (CIP).

The proposed operating budget recommends no reduction in services and programs, and includes service enhancements requested by the Mayor and Council. Ullery identified the budget’s central theme as “sustainability” – a sustainable infrastructure, sustainable services, a sustainable environment and sustainable financial practices. The city manager is recommending no increase in the property tax rate, and three tax relief programs. For the second consecutive year, a flat $100 credit per owner-occupied residence is recommended. Also, the proposed budget would continue the Homeowners’ Tax Credit Program to provide property tax relief to low- and moderate-income taxpayers, and include a Senior Tax Credit, which would allow an additional 25 percent property tax relief for homeowners who are 70 years or older.

“This is a good news budget,” said Rockville Mayor Susan Hoffmann. “Unlike other levels of government, we are not increasing taxes, yet we are maintaining services at a very high level.”

The FY09 operating budget sustains the City’s high level of services to residents. New operating expenses for the Thomas Farm Community Center, set to open in January 2009, and the upgraded fitness center and meeting room at the Rockville Municipal Swim Center are included. Public safety enhancements include two new police officers dedicated to traffic and pedestrian safety. The budget includes strengthening internal functions such as information technology, finance, and employee training that support the delivery of frontline services. Other significant cost increases include retiree health care costs, fuel, electricity, commodities and personnel expenses.

The most significant new program is a recommended 15-year infrastructure initiative to replace 33 miles of decades-old water pipe that is deteriorating. A significant upgrade to the City’s water distribution plant also is needed to comply with more stringent state and federal regulations. The new program will require significant water rate increases. New rates would be $2.80 (currently $1.78) per thousand gallons for the first 12,000 gallons; $4.02 (currently $2.56) per thousand gallons for the next 12,000 gallons; and $4.32 (currently $2.75) per thousand gallons for usage beyond 24,000 gallons. In addition to the water rates, customers also pay a “ready-to-serve” charge based on meter size. The sewage rate would increase 3.9 percent to $3.97 per thousand gallons. The ready-to-serve charge is recommended to increase three percent over FY08, to $9.27 per quarter for the average household. The ready-to-serve charge supports both the water and sewer funds.

The recommended budget calls for no increase to the monthly refuse and recycling collection fee, which will remain at $32.70. Fee increases are unnecessary due to because reduced expenses and improved efficiency of a new semi-automated once-per-week refuse collection and single stream recycling service. Current service is provided by an inefficient manual system, with twice per week refuse collection that requires customers to sort recyclable materials.

Another significant initiative in the proposed budget is a new stormwater management (SWM) program that focuses on SWM facility and storm drainage maintenance, stream restoration, sediment control, and improvements to meet federal water quality requirements. The program will be paid out of the SWM fund balance in FY09, and an annual utility fee of $55.80 per residential lot, with higher fees for non-residential parcels is expected in FY10.

Major CIP projects proposed include: asphalt pavement maintenance, storm sewer rehabilitation, residential meter replacement, water main rehabilitation, water plant upgrades, water plant maintenance and repair, improvements to the City’s maintenance and recycling off-load facilities, refuse carts acquisition, pedestrian bikeway system improvements, Rockville Municipal Swim Center improvements, and continued construction of the Mattie J.T. Stepanek Park. For FY09, the City initiated a new process to prioritize the CIP, based on 18 criteria that included the visions and priorities of the Mayor and Council and the impacts that capital projects have on the City’s facilities and infrastructure, environment and safety, and budget and legal provisions.

Rockville residents will have two opportunities for public input on the proposed budget and CIP when the Mayor and Council conduct public hearings on March 31 and April 14 at 7 p.m. at City Hall. Two worksessions are scheduled for April 28 and May 5, also at 7 p.m. at City Hall. The Mayor and Council are scheduled to adopt the budget and CIP on May 19. All Mayor and Council meetings are televised live on The Rockville Channel (TRC 11) and will rerun several times.

The proposed budget is available online at www.rockvillemd.gov/government/budget. It also is available for review at the Rockville Library and City Hall (111 Maryland Ave.).

Mayor And Council Agenda 2/11/08 Available

The agenda for the next meeting of the Mayor and Council, >Monday, February 11, 2008 at Rockville City Hall, has been posted to the City’s website. It is available here. (My understanding is that, if the agenda is amended, that same link will reflect the changes.)

This upcoming meeting, since it is a worksession, will not be televised on The Rockville Channel, though (I am led to believe) it is open to the public. Those who have time may wish to attend, as there is an important item set for discussion: details on the next fiscal year’s budget, for FY2009.

Some have asked the Mayor and Council to rethink their recent decision to stop televising such worksessions, a decision they took in order to create an atmosphere more conducive to getting work done.

In any event, for those who cannot personally attend this meeting, here is a note from staff that may serve to reduce anxiety:

Tonight’s presentation seeks the Mayor and Council’s concurrence with the current direction of budget preparation, specifically the FY 2009 enterprise fund rates (with the exception of the water rates). There will be other opportunities for the Mayor and Council to provide additional guidance and direction during the public hearings, scheduled for March 31, 2008 and April 14, 2008, and/or during the next Mayor and Council worksessions, scheduled for April 28, 2008 and May 5, 2008.

That is, this is not the only time the budget will be considered, and there will be public input opportunities.

That one the day before Tax Day sounds like a hoot.