Rockville City Council to Hold Budget Hearing Tonight

Rockville’s proposed $108.8 million fiscal 2012 operating budget holds the line on the property tax rate but eliminates a $100 tax credit for homeowners and calls for increases to fees for recreation programs and for water and sewer.

A public hearing on the proposed fiscal 2012 operating and capital budgets and on the constant yield tax rate will be held at 7 tonight at .

The operating budget proposal is a 3.7 percent increase over the fiscal 2011 budget. It includes a proposed $65.6 million general fund to support everyday government expenditures, such as public safety, parks and street maintenance.

It maintains the real property tax rate at 29.2 cents per every $100 of assessed value for all properties and the personal property tax rate of 80.5 cents per $100 of assessed value for commercial properties.

The proposal eliminates a $100 income tax offset credit for homeowners, which the city has had in place for the past four years at a cost to the city of about $1.54 million per year.

The proposal calls for the following utility rates:

• Trash collection: $392.40 per year; no change.
• Sewer: 13 percent increase from $4.66 per 1,000 gallons in fiscal 2011 to $5.26 per 1,000 gallons in fiscal 2012.
• Water: 24.5 percent increase. First 12,000 gallons per quarter: From $3.48 in fiscal 2011 to $4.33 in fiscal 2012. Next 12,000 gallons: From $5.01 in fiscal 2011 to $6.23 in fiscal 2012. More than 24,000 per quarter: From $5.37 in fiscal 2011 to $6.69 in fiscal 2012.
• Stormwater management: 27 percent increase. From $49.20 per typical single-family lot in fiscal 2011 to $62.48 per typical single-family lot in fiscal 2012.

Proposed increases to recreation programs include hikes to participation fees for adult softball, volleyball and basketball leagues, the city’s annual 10K/5K runs, track and field, skate camp, swim club memberships and swimming lessons.

The budget plan also calls for $106,490 in cuts to the recreation and parks budget for special events, adult sports, outdoor recreation, teen programs, the Senior Center and administrative and support services. The cuts include eliminating the Teen Destination Creativity Camp and reducing open gym hours at the climbing gym at Rockville Civic Center Park from three nights a week to one night a week.

The plan calls for a 1 percent increase in salaries for employees and maintains the number of full-time city employees at 540.

Compensation for the mayor and council members would increase under a resolution approved in 2009 that pegs pay hikes to the annual increases in the consumer price index. The index has increased by 1.6 percent in each of the past two fiscal years.

The increase would cost the city about $3,500. The mayor’s pay would increase from $25,750 today to $26,580. Council member’s pay would increase from $20,600 today to $21,264.

The proposed budget also includes $568,240 for the city’s grant program for caregivers and social service agencies, a 2.7 percent increase over fiscal 2011. Grants go to 24 agencies that provide housing, food, clothing and financial assistance, as well as health care and other needs.

Capital budget

The city’s five-year capital budget plan for fiscal 2012 through fiscal 2016 includes $25.9 million in new funding and $42.5 million in prior year funding to support 46 projects. About $24.6 million, or 95 percent of the new fiscal 2012 capital spending would go toward maintaining infrastructure, including:

• Reconstructing the Edmonston Drive bridge over the CSX/Metrorail tracks.
• Continuing pedestrian safety initiatives.
• Rehabilitating and improving water and sewer systems.
• Maintaining playground and athletic fields.
• Repairing the Swim and Fitness Center.
• Improving RedGate Golf Course as recommended by .
• Continuing street paying and repairs.
• Contributing to the Blue Plains Advanced Wastewater Treatment Plant upgrades.

About $1.3 million, or 5 percent of the capital budget would got toward the following:

• Finish the three-year program for installing battery backups at all 45 city-owned traffic signals.
• A citywide document management and imaging system.
• A two-year program to purchase and install a citywide enterprise resource planning software system.
• An emergency generator at the Senior Center.

Budget calendar

• Today: Public hearing on proposed operating and capital budgets and constant yield tax rate
• April 11: City Council work session on internal service departments’ budgets.
• April 25: City Council work session on recreation and parks budget.
• May 2: City Council work session.
• May 9: Public hearing.
• May 23: Budget adoption.
• July 1: Fiscal 2012 begins.