5. City of Rockville, Maryland
FY 2016 Adopted Budget
Colette Anthony, Human Resources Administrator Pamela Minor, Legal Secretary
Carlos Aparicio, Community Services Manager Linda Moran, Assistant to the City Manager
Louise Atkins, Council Support Specialist Wayne Noll, City Forester
Kevin Belanger, Transportation Planner II Raymond C. O’Brocki III, Chief of Inspection Services
Marylou Berg, Communication Manager Marcus Odorizzi, Loss Control Administrator
Jason Bible, Parks Services Manager Rob Orndorff, Horticulturist
Mark Charles, Chief of Environmental Management Eric Over, Special Operations Bureau Commander
Whitney Coleman, CPDS Administrator Timothy Peifer, Financial Systems Manager
Hjarman Cordero, Sr. Neighborhood Resources Coordinator Brian Plymale, Operations Maint. Assistant Superintendent
Mauricio Daza, Parks and Facilities Development Specialist Robert Purkey, Construction Inspection Supervisor
Elisabeth Deal, R&P Marketing and Development Manager Robert J. Rappoport, Admin. Services Bureau Commander
Rick DeNio, Network Engineer Bobby Ray, Principal Planner
Timothy Diehl, Supervisor of Plans and Permitting Betsy Robbins, Web Administrator
Judy Ding, P.E., Deputy Director of Utilities Lori Russler, Graphics Specialist
Emad Elshafei, P.E., Chief of Traffic and Transportation Staffan Sandberg, Cable Television Production Manager
Michael W. England, Field Services Bureau Commander John Scabis, P.E., Engineering Supervisor
Dianne Fasolina, Parks Maintenance Supervisor Daniel Seo, P.E., Transportation Engineer II
Eric Ferrell, Copy Center/Mail Specialist Steve Sokol, Operations & Maintenance Superintendent
Ray Foreman, Recycling and Refuse Superintendent Lise Soukup, P.E., Civil Engineer III
Susan Fournier, Public Works Administrator Kimberly Stein, Financial Accounting Manager
Heather Gewandter, Stormwater Manager Susan T. Straus, P.E., Chief of Engineering
Adam Goldstein, Swim and Fitness Center Superintendent Patrick Stroud, Fleet Manager
Noel Gonzalez, Facilities Property Manager Om Thukral, Senior Network Engineer
Andrew Gunning, Assistant Director of CPDS Robert Valentine, Operations Maint. Assistant Superintendent
Janet Hare, Network and Systems Manager Jim Wasilak, Chief of Planning
Christine Henry, Recreation and Parks Administration Manager Marc Weinshenker, GIS Manager
Terri Hilton, Senior Center Program Manager Mark Wessel, P.E., Engineering Supervisor
John W. Hollida, P.E., Civil Engineer III Michael A. Wilhelm, P.E., Chief of Construction Mgmt.
Tom Howley, Supervisor of Comm. Enhancement / Code Enf. Erin Wilson, Housing Specialist
Hillary Hurlbutt, Health and Wellness Program Manager Jim Woods, P.E., PMP, Civil Engineer II
Paige Janzen, Civic Center Superintendent
Angela Joyner, Telecommunications Administrator Department Directors
Mark Kibiloski, Parks and Facilities Administrative Supervisor Timothy J. Chesnutt, Director of Recreation and Parks
Benita Koch, IT Enterprise Project Manager Gavin Cohen, Director of Finance
Gabriel Kosarek, P.E., Civil Engineer II Debra Daniel, City Attorney
Andy Lett, Superintendent of Recreation Jennifer Kimball, Deputy City Manager
David Levy, Chief of Long Range Planning and Redevelopment Karen Marshall, Director of Human Resources
Ilene Lish, P.E., Civil Engineer II Nicholas Obodo, Director of Information Technology
Andrew Luetkemeier, P.E., Transportation Engineer II Craig L. Simoneau, P.E., Director of Public Works
Gregory Lyons, P.E., Transportation Engineer II Susan Swift, Director of Community Planning and Development
Steve Mader, Superintendent of Parks and Facilities Sara Taylor‐Ferrell, Acting City Clerk/Treasurer
Glenn Maggard, Water Treatment Plant Superintendent Terrance N. Treschuk, Chief of Police
Colleen McQuitty, Special Events Manager
Deane Mellander, Principal Planner
Acknowledgements
This document could not have been prepared without the support and leadership of the Mayor and Council and the City
of Rockville Management Team. The individuals listed below were integral in the preparation of this document.
Go To Table Of Contents
6. City of Rockville, Maryland
FY 2016 Adopted Budget
Introduction CIP Overview
City Manager's Transmittal Letter 1 Capital Improvements Program Structure 295
Budget Highlights 3 Capital Improvements Program Overview 297
The Budget Process 15 CIP Prioritization Process 298
Rockville Community Profile 18 Neighborhood Association Requests 298
Funding Sources Used to Finance the CIP 299
Guiding Documents Source of Funds by Type and Fund 300
Mayor and Council Critical Success Factors 23 Use of Funds by Program Area and Fund 302
Financial Management Policies 28 FY 2016 CIP Appropriations Summary 304
Major Policy Documents 43 Relationship between Operating Budget and the CIP 305
Debt Management Policies and Ratios 306
Financial Summaries Total Outstanding City Debt 307
City of Rockville Fund Structure 49 Unfunded Totals by Program Area and Fund 308
Consolidated Financial Summary 50
Projected Changes in Fund/Cash Balance 56 CIP Projects
Financial Summaries by Fund: How to Read this Section 309
General Fund 58 Summary of CIP Projects 310
Special Activities Fund 66 Recreation and Parks Program Area 313
Community Development Block Grant Fund 68 Transportation Program Area 337
Speed Camera Fund 70 Stormwater Management Program Area 357
Debt Service Fund 72 Utilities Program Area 369
Water Fund 74 General Government Program Area 383
Sewer Fund 76
Refuse Fund 78 Supplemental Information
Stormwater Management Fund 80 Non‐Departmental Revenues and Expenses by Fund 391
Parking Fund 82 Full Time Equivalent Position Summary 394
RedGate Golf Course Fund 84 Position Control Summary by Department 397
Relationship between Funds by Department 86 Regular Employee Pay Scales 404
Relationship between Departments by Operating Fund 88 Planned Improvement Projects 406
Relationship between Funds by Revenue Sources 90 Fleet Replacement Schedule 407
CIP Prioritization Criteria 408
Operating Departments Tax Expenditures 409
Citywide Organizational Chart by Division 93 Caregiver/Outside Agency Grants 410
Mayor and Council 95 Cost Recovery Summary 412
City Attorney's Office 103 Special Activities Fund: Account Balances 413
City Manager's Office 107 Water and Sewer Rates 414
Community Planning and Development Services 127 Boards and Commissions Officials 415
Finance 149 Changes from Proposed to Adopted Budget 416
Human Resources 171 Budget Ordinance 418
Information Technology 187
Police 201 Appendix
Public Works 223 Glossary 421
Recreation and Parks 257 Acronyms 433
Index 434
Table of Contents
Go To Table Of Contents
7. City of Rockville, Maryland
FY 2016 Adopted Budget
How To Read The Budget
The City of Rockville’s Operating Budget and Capital Improvements Program (CIP) provides residents and City officials with
detailed information about the City’s spending and operations. The goal of the budget document is to provide transparency
to the public about the programs, services, and policy implications of the City’s spending decisions and to detail the City’s
operational and financial strategy over the coming fiscal year for the operating budget and over a five year period for the CIP.
The Operating Budget and CIP together serve as a:
1. Policy Document – to describe financial and operating policies, goals, and priorities for the organization.
2. Financial Plan – to provide revenue and expenditure information by fund, department, division, and category.
3. Operations Guide – to describe activities, objectives for the fiscal year, and performance measures to track progress
on the objectives and the workforce.
4. Communications Device – to provide information on budgetary trends, planning processes, and the integration of
the operating and capital budgets.
This document is divided into eight major sections: Introduction, Guiding Documents, Financial Summaries, Operating
Departments, CIP Overview, CIP Projects, Supplemental Information, and Appendix.
Introduction
This section includes the letter from the City Manager, budget highlights, a description of the budget process, and a profile of
the Rockville community and local government.
Guiding Documents
This section includes an overview of the Mayor and Council’s Critical Success Factors, a summary of the City’s financial
management policies, and descriptions of the City’s major policy documents.
Financial Summaries
This section describes and analyzes each of the City’s funds both individually and in consolidated form using tables and
graphs to highlight key aspects of the budget. Revenue and expenditure summary information is detailed by fund and
department and projected changes in fund and cash balances are provided. The City’s General Fund is described and analyzed
in detail and all other funds are shown as two page layouts which include nine year financial summaries, illustrated
compliance with City financial management policies, and detailed information specific to the fund, including the fund’s
purpose, the fund’s current status and future forecast, and information related to tax and fee rates, if applicable. This section
also includes three comprehensive visualizations of the relationships between funds by department, the relationships
between departments by operating fund, and the relationships between operating funds by revenue source.
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8. City of Rockville, Maryland
FY 2016 Adopted Budget
Operating Departments
The Departments section provides strategic, operational, performance, and budgetary information for each of the City’s ten
departments. Each department section begins with an overview of the scope and responsibilities of the entire department.
This includes the department’s mission statement and a brief overview of its primary functions. The first page of each
department section also contains a summary organizational chart illustrating divisional reporting relationships as well as
expenditure, regular full time equivalent positions, and temporary full time equivalent position information. Each department
section then details major prior year accomplishments followed by a coming year outlook. Below is an annotated illustration
of the Community Planning and Development Services (CPDS) Department section from the Departments section in this
document. The layout of all department sections follows this format.
Following the coming year outlook are department‐level financial and staffing tables. These tables show expenditures for the
department in two views, by division and by expenditure type, and revenues by division. These financial tables are followed
by a regular and temporary FTE staffing table that is shown by division. Along the right side of all pages with financial and
staffing tables is a sidebar that contains explanations of significant changes from the prior fiscal year to the coming fiscal
year. In the department overview section, these explanations are more general than in the following division sections, which
are more detailed. Because divisions roll up into departments and departments into funds, the same information can be seen
in multiple locations in this document. The reader should note that the most detailed information can be found at the
division level.
On the following page is an annotated illustration of the department financial and staffing tables for the CPDS Department
section from the Departments section of this document. The layout of all department sections follows this format.
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9. City of Rockville, Maryland
FY 2016 Adopted Budget
Following each department summary section are sections for each of the department’s divisions. These sections follow
essentially the same format as the department summary sections, but at a closer level of analysis and they include work
program goal, Critical Success Factor alignment, and performance measure and short term objective data. At the top of each
sheet is the name of the division, followed by a
description of that division’s core responsibilities. A
division‐level organizational chart follows, detailing
expenditure and regular and temporary staffing
information by the division’s cost centers.
Beneath the organizational chart are all of the division’s
operational work program goals and the Critical Success
Factor that each goal supports. Depending on the nature
of the work in a given work program area and the
availability of operational data, the work in support of the
goal may be shown as workload measures, effectiveness
or efficiency performance measures, or as project‐based
short term objectives. To the left is an annotated
illustration of the first page of the Planning and Zoning
Division section in the CPDS Department section of this
document. The layout of all division sections follows this
format.
Following the performance measures and short term
objectives layout, each division section includes division‐
level financial and staffing tables, each with the same
accompanying explanatory side bar, that follow the same
format as described at the departmental level.
Go To Table Of Contents
10. City of Rockville, Maryland
FY 2016 Adopted Budget
CIP Overview
This section provides a detailed overview of the City’s capital planning process, as well as financial summary information for
the FY 2016 – FY 2020 Capital Improvements Program (CIP). This section also describes the relationship between the
operating and capital budgets, and displays the City’s debt ratios and total outstanding debt. Total unfunded CIP needs are
also discussed in this section.
CIP Projects
This section provides detail on the City’s FY 2016 – FY 2020 CIP. It is broken up into five program areas: Recreation and Parks,
Transportation, Stormwater Management, Utilities, and General Government. Each individual CIP project has its own project
summary sheet that includes a project overview, current and future funding summary, and project completion estimates. For
more information on how to read CIP project sheets, see the first page of the CIP Projects section.
Supplemental Information
This section contains detailed information that compliments and clarifies the rest of the document. This includes a
description of non‐departmental revenues and expenses; Citywide staffing and position classification information; planned
improvement projects; fleet replacement schedule; CIP prioritization criteria; tax expenditures; caregiver/outside agency
grants; cost recovery summary; fund balance information for the City’s Special Activities Fund accounts; water and sewer rate
schedules; Boards and Commissions information; changes from the proposed to adopted versions of the FY 2016 budget; and
a copy of the FY 2016 budget ordinance.
Appendix
This section contains the glossary, list of acronyms, and index.
More information can be found online at www.rockvillemd.gov/budget including a line item version of the budget in
Microsoft Excel format.
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15. City of Rockville, Maryland
FY 2016 Adopted Budget
• Replacement of Police In Car Video Cameras ($60,000) – The FY 2016 General Fund operating budget includes
$60,000 for the replacement of in car video cameras. The Rockville Police Department started equipping its police
vehicles with in car video cameras in 1994. Since then, staff has repaired and replaced some cameras; however,
most of the current equipment is at the end of its useful life. The requested funding will upgrade approximately 25
cameras in FY 2016. The FY 2017 budget will also include $60,000 for the upgrade of the remaining 25 cameras.
• Additional Contract Tree Maintenance ($47,000) – The FY 2016 General Fund operating budget includes an
additional $47,000 for contract tree maintenance. This $47,000 provides funding for contract pruning and for a
contract inspector to help manage the increased workload. In order to achieve the 10‐year pruning cycle, which is
a goal of the Mayor and Council, the City will need to appropriate an additional $47,000 each year from FY 2016
through FY 2020.
• New Swim and Fitness Center Repairs and Equipment ($230,000) – The FY 2016 General Fund operating budget
includes an additional $230,000 for one‐time Swim and Fitness Center maintenance, repairs, and equipment
purchases. A portion of this funding will go towards "immediate repairs" as recommended in the Swim and Fitness
Center's Facility Audit and Recommendations for Enhancements. Immediate repairs are defined as repairs needed
within six months to one year. These items relate to areas of prolonged deferred maintenance, potential safety
issues, potential for major facility failure, and/or compliance with updated codes.
The remaining funding is recommended for equipment maintenance, repairs, and purchases that have been
deferred in past years in order to fund emergency repairs at the facility. More specifically, this funding will assist
with roof drains repairs, replacement of lights and acoustical tiles, ceiling painting, relocation of equipment to non‐
pool walls, and filtration equipment and machinery repairs.
New or Expanded City Programs and Initiatives
The FY 2016 operating budget includes new funding for the development of new or the expansion of existing programs.
These programs are targeted at the minority business community, Rockville seniors, Rockville residents in need of financial
assistance for participation in recreation programs and activities, and the Project SEARCH program. Below are brief
descriptions of each of the new or expanded programs.
• Minority, Female, and Disabled‐Owned Business Outreach Program ($67,000) – In October 2014, the Mayor and
Council requested that staff look for ways to increase outreach to minority, female, and disabled‐owned (MFD)
businesses. In order to participate effectively, and in a manner befitting the City, an increase of $12,000 in the
General Fund is included in the adopted budget to fund costs related to travel, classes, professional development,
conference attendance, association and membership dues, and other associated fees and publications.
Additionally, an increase of $4,000 in program supplies is budgeted for table skirting, trade show display,
promotional products, and apparel.
This funding is in addition to the 1.0 full time equivalent Principal Buyer position that was added in February 2015.
The Principal Buyer position will cost approximately $102,000 in FY 2016, with one‐half of the position being
primarily responsible for the City's minority, female, and disabled‐owned business program outreach and related
activities. This position will also assist with policy development; reviewing guidelines, procedures, rules, and
regulations; conducting training; and coordinating and evaluating program activities.
• Senior Programs ($26,000) – The FY 2016 General Fund operating budget allocates funding for several
enhancements for the Senior Center. These enhancements include an additional $26,000 for a 0.5 full time
equivalent (FTE) position to help manage senior sports and fitness programs, additional senior fitness classes (cost
neutral), and an increased number of senior personal training sessions (cost neutral). Senior fitness classes will
include new and innovative classes, such as "Senior Abs and Back," "Chair Yo‐Chi," "Dance Party Fitness," "Creative
Movement," and "Triple Zen." In addition to fitness classes, the personal training program is very popular. It allows
seniors to work one on one with a personal trainer to continue to rehabilitate from illness, injury and/or surgery;
feel more comfortable with the fitness equipment; and achieve their personal fitness goals.
5
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16. City of Rockville, Maryland
FY 2016 Adopted Budget
• Recreation Fund and Senior Assistance Fund Programs ($50,500) – At the second budget preview held on January
5, 2015, the Mayor and Council expressed interest in expanding the Recreation Fund and the Senior Assistance
Fund in order to reach more Rockville residents. The Recreation Fund provides financial support to the City's low
income residents for recreation program participation. The Senior Assistance Fund provides financial support to
low income seniors for memberships, trips, classes, and medical transportation. The FY 2016 budget includes
General Fund subsidies in the amounts of $45,000 for the Recreation Fund and $5,500 for the Senior Assistance
Fund. The increased funding will allow staff to offer more financial assistance to residents and members of the
City’s recreation facilities. In addition to these subsidies, these programs will continue to be supported by
donations and other restricted revenue sources for FY 2016.
• Project SEARCH ($61,600) – The FY 2016 operating budget includes temporary employee funding for the seasonal
hire of one or more Project SEARCH program graduates and regular employee funding for the permanent hire of
one or more benefitted Project SEARCH program graduates. Founded in 1996, Project SEARCH is an internationally
recognized job skills training program for individuals with disabilities. The program partners with schools,
vocational rehabilitation, developmental disabilities services, and a diverse team of employers to transition
students with special needs from high school to meaningful employment. The FY 2016 budget includes temporary
employee funding in the Department of Recreation and Parks and regular employee funding in the Department of
Human Resources. Staff will work with Project SEARCH to match recent graduates of the program with the
temporary and regular positions available at the City. The most recent Project SEARCH class graduated on June 19,
2015.
New Consultant Funding
The General Fund operating budget includes new funding for two major consultant projects in FY 2016: $75,000 for a
housing market analysis and needs assessment and $100,000 for a consultant to update the Historic Resources
Management Plan. More information on each of these studies is provided below.
• Housing Market Analysis and Needs Assessment ($75,000) – The Department of Community Planning and
Development Services will seek a consultant to complete a housing market analysis and needs assessment to
inform the development of a comprehensive housing plan for the City starting in FY 2016. Outside expertise is
required to accurately analyze the City's supply and demand of housing, and estimate long‐term housing needs for
market rate and affordable housing stock. The City seeks insight on housing preferences for different household
types and income levels and to better understand housing needs and desires of residents in terms of type of
housing, affordability, condition, size of units, costs, and location. A special emphasis will be placed on defining
Rockville's place within the regional Montgomery County housing market.
This analysis will provide the data and information used to revise the City's housing policy, as presented in the
Housing Element of the Comprehensive Master Plan (CMP) and any accompanying implementation documents. It
will also be a data resource for other elements of the CMP and other long‐range planning activities. The principles
in the housing policy will provide guidance for the decisions of the Mayor and Council and boards and
commissions. A number of housing developments have been proposed in recent years, which demonstrate the
need for a comprehensive analysis and an updated housing policy.
• Update of the Historic Resources Management Plan ($100,000) – In 2014, the City hired Environmental Resources
Management (ERM) to analyze the City's adopted historic preservation documents and to provide
recommendations for updates to the documents. The report outlined gaps and inconsistencies among the
documents, and recommended solutions to eliminate them. The ERM report identified several major projects,
which will result in a three year work program for the Historic Preservation program. This work program will
include a zoning text amendment, revised HDC Rules of Procedure, and a new historic preservation element of the
Master Plan, which will be accomplished by staff. However, a consultant is needed for one of the primary
recommendations, which is to revise and update the Historic Resources Management Plan (HRMP), adopted in
1986.
6
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17. City of Rockville, Maryland
FY 2016 Adopted Budget
The HRMP is envisioned as a functional plan that helps to implement the Comprehensive Plan. The consultant
would be hired to extract and reorganize content from various documents into one updated HRMP. This plan
would address the City's historic resources and how the Master Plan policies on historic resources are to be carried
out. Some specific functions of the HRMP would be to establish and describe the historic periods and the contexts
and building types in Rockville. This update would include detailed policies and implementation steps, such as new
districts, incentives, easements, education, and survey needs.
Employee Compensation and Benefits
During FY 2016, the City will likely finalize the Compensation and Classification Study that will help determine the City’s
compensation structure for the future. In addition to implementing a new compensation structure for regular employees,
the FY 2016 budget includes a significant increase in minimum wage for the City’s hourly and temporary employees. Below
is more detail on the City’s compensation direction for FY 2016.
• Regular Employee Compensation – The FY 2016 budget includes a two percent across the board adjustment for
regular benefited employees. In addition to this adjustment, the City will be finalizing the Compensation and
Classification Study that began in 2014. This Study will establish new pay structures that will likely be implemented
mid‐FY 2016 and a new performance evaluation system that is scheduled to be implemented starting in FY 2017.
• Minimum Wage ($85,000) – The FY 2016 operating budget includes $85,000 to bring all hourly employees up to
the County’s minimum wage rate of $9.55 starting July 1, 2015. The County’s minimum wage is currently at $8.40,
with the $9.55 taking effect on October 1, 2015. A more comprehensive look at the City’s hourly wage rates and
temporary employee pay scale will take place at the conclusion of the current Compensation and Classification
Study. For reference, below is the schedule of minimum wage adjustments for the next several years for
Montgomery County and the State of Maryland:
Montgomery County State of Maryland
$8.40 effective 10/1/14 $8.00 effective 1/1/15
$9.55 effective 10/1/15 $8.25 effective 7/1/15
$10.75 effective 7/1/16 $8.75 effective 7/1/16
$11.50 effective 7/1/17 $9.25 effective 7/1/17
$10.10 effective 7/1/18
• Employee Wellness ($40,000) – The FY 2016 operating budget includes $40,000 from the General Fund for an
employee wellness portal. The portal provides a secure personalized website for employee use, and includes
features like the annual health assessment tool, online health and biometric data tracking, online registration
system, health coaching, ongoing health information and health challenges, and more. Without the portal, the
wellness program has no means to track, record, and project any wellness participant and health change data. The
City's Health and Wellness cost center uses this information to strategically plan what programs to provide for
employees, based on needs and interests.
Operating Budget Overview
The adopted FY 2016 operating budget totals approximately $123.4 million for the City’s 11 operating funds. This
represents an overall increase of 4.6 percent from the FY 2015 adopted budget.
Just over 60 percent of the City’s spending occurs in the tax‐supported General Fund. The General Fund is the City’s primary
operating fund and is used to account for the City's activities that are not included in another fund. Other major funds
include the City’s enterprise funds: Water, Sewer, Refuse, Stormwater Management, Parking, and RedGate Golf. Utility
rates and other user fees charged to City households and businesses support the Water, Sewer, Refuse, and Stormwater
Management funds. The City sets the rates for these utilities based on cash flow models that target specific cash levels after
a certain period. The Parking Fund is supported by the special taxing district, parking meter, and parking violation revenue,
while the RedGate Fund is supported by lease and performance revenue payments from Billy Casper Golf.
7
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8
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20. City of Rockville, Maryland
FY 2016 Adopted Budget
General Fund Expenditures by Category
Expenditures
Personnel 42,348,806 43,720,980 43,500,280 ‐0.5%
Operating 11,925,138 12,801,960 13,331,870 4.1%
Capital Outlay 778,381 829,650 2,182,740 163.1%
Administrative ‐ ‐ ‐ ‐
Other 1,448,051 1,672,370 1,827,970 9.3%
Total Oper. Exp. 56,500,376 59,024,960 60,842,860 3.1%
Principal ‐ ‐ ‐ ‐
Interest ‐ ‐ ‐ ‐
CIP Transfer 6,408,000 5,894,000 7,200,000 22.2%
Transfers Out 6,489,230 5,469,040 6,547,140 19.7%
Total ($) 71,916,063 70,388,000 74,590,000 6.0%
FY 2014
Actual
FY 2015
Adopted
FY 2016
Adopted
% Change
from FY15
Other Revenue
The largest revenue source in this category is administrative charges that represent centrally budgeted administrative or
"overhead" costs. Each fund pays for its share of the costs through a transfer to the General Fund. An update to the City's
Cost Allocation Plan (CAP), the document that determines the charges, was finalized in FY 2015. The FY 2016 budget
includes administrative charges consistent with this updated plan. For FY 2016, administrative charges will bring in
approximately $5.3 million in General Fund revenue, an increase of 45 percent over FY 2015. The City's funds that are most
impacted by the update include Water, Sewer, and Refuse, which all increased by over 48 percent from FY 2015 to FY 2016.
Future years estimates include an increase of two percent each year. The City plans to update the CAP every three to five
years.
General Fund Expenditures
The major cost drivers for FY 2016 General Fund expenditures include personnel, operating expenses, and transfers to the
Capital Projects and Debt Service funds. A major change for FY 2016 General Fund expenditures impacts capital outlay,
increasing it by over 163 percent. Each of these areas is described in more detail below.
Personnel
The FY 2016 personnel figures do not include any changes
that may result from the Compensation and Classification
Study to be discussed and implemented in FY 2016. The FY
2016 budget includes a two percent across the board
adjustment for all regular employees, minimum wage
increase for hourly and temporary employees, and increases
for the cost of the City’s healthcare benefits.
In addition to healthcare, major employee benefits include
retirement contributions. Based on the latest actuarial data,
staff estimates that the City's contribution to the pension
plan, which covers the City's defined benefit program, will
equal $3.6 million across all funds in FY 2016 ($2.9 million is
General Fund). This contribution is less than the contribution
budgeted for FY 2015 ($4.0 million). The FY 2016
contribution is $0.4 million lower than FY 2015, due in part
to lower than expected pay increases and higher than
expected investment returns.
If the City contributes the required amount, the funded ratio for the pension plan is projected to equal approximately 86
percent in FY 2016. City staff estimates that the funded ratio will gradually increase over the next several years, while the
City's contributions remain between $3.5 and $4 million. The latest report projects the funded ratio will equal
approximately 95 percent by FY 2021.
In addition to the City’s defined benefit plan contribution, employees other than sworn Police personnel participate in the
thrift savings plan. The City matches employees’ contributions with 50 cents for every dollar contributed by the employee,
up to a maximum of five percent of salary. The FY 2016 budget for the City’s match remains relatively flat, at approximately
$668,000 across all funds ($519,000 is General Fund).
The City provides eligible retirees with healthcare coverage upon retirement, covering 80 percent of the total cost of the
City's lowest cost healthcare plan. For FY 2016, the City will contribute approximately $677,600 across all funds ($546,500 is
General Fund) to the Retiree Benefit Trust. This total is relatively consistent with what the City paid in FY 2015.
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21. City of Rockville, Maryland
FY 2016 Adopted Budget
General Fund Expenditures by Department
Mayor & Council 710,735 669,480 850,780 27.1%
City Attorney 984,295 997,330 984,720 ‐1.3%
City Manager 3,883,959 4,110,620 4,029,910 ‐2.0%
CPDS 4,537,189 5,005,210 5,206,390 4.0%
Finance 2,636,539 2,850,520 2,985,590 4.7%
HR 1,301,562 1,455,030 1,515,860 4.2%
IT 2,719,254 3,072,480 3,269,140 6.4%
Police 10,078,940 10,060,460 10,063,070 0.0%
Public Works 7,394,355 7,479,780 8,358,930 11.8%
Rec. & Parks 19,991,003 20,852,250 21,149,230 1.4%
Non‐Depart. 15,109,775 13,834,840 16,176,380 16.9%
Total ($) 69,347,606 70,388,000 74,590,000 6.0%
% Change
from FY15
FY 2014
Actual
FY 2015
Adopted
FY 2016
Adopted
Operating Costs
The overall increase of six percent in the General Fund operating budget is mainly due to the addition of $175,000 for two
new consultant studies for the Department of Community Planning and Development Services, $47,000 for increased
contract tree maintenance, $40,000 for additional HVAC preventative maintenance, and $44,000 for an increase in the
City’s mowing contract. These items are all considered contractual services.
Capital Outlay
The overall increase of 163.1 percent in the operating budget is mainly due to several CIP projects that were moved from
the CIP to the operating budget starting in FY 2016. These projects were moved to the operating budget because they no
longer met the criteria for inclusion in the CIP. Funding for these projects, which include street lighting, traffic controls,
HVAC, and vehicles, is budgeted under capital outlay, major repairs. In future years, the total for capital outlay will fluctuate
somewhat based on the repair and replacement schedules; however, the budget will remain relatively consistent with the
$1.8 million adopted for FY 2016.
CIP Transfer
Each year, the City makes a transfer from the General Fund to the Capital Projects Fund to support the City's Capital
Improvements Program (CIP). The CIP is mainly funded from four sources: cash, debt, government grants, and developer
contributions. The transfer from the General Fund is the cash or "paygo" contribution. The paygo contribution is critical in
controlling the City's overall debt and maintaining the City's credit rating. In past years, the City transferred one‐time
savings (General Fund unassigned fund balance in excess of the reserve requirement) in addition to the annual budgeted
transfer amount in an effort to reduce borrowing. The FY 2016 budget includes a transfer of $7.2 million. The amount of
this contribution impacts both the current fiscal year and future years since the Capital Projects Fund is balanced over a five
year period.
Debt Service Transfer (included in Transfers Out)
The transfer from the General Fund to the Debt Service Fund for FY 2016 totals $5.5 million. The City’s Debt Service Fund
exists to support the repayment of the City’s taxpayer supported debt. No new taxpayer supported debt is planned for in FY
2016. In future years, new bond issues in the amounts of $1.7 million in FY 2017, $3.0 million in FY 2018, and $1.8 million in
FY 2019 are planned. The Debt Service Fund is managed over a five year period, with the goal of maintaining a cash balance
equal to ten percent of the average annual outstanding principal payment.
Expenditures by Department
The table to the right shows total General Fund expenditures
by department with percent changes from adopted FY 2015
to adopted FY 2016. Changes greater than five percent
include: 27.1 percent increase in the Department of the
Mayor and Council due to FY 2016 being an election year, the
transfer of $50,000 for the validation of parking for the
Library, VisArts, and the Rooftop from the Non‐Departmental
budget, and $57,000 for a grant to the Rockville Volunteer
Fire Department for an emergency response vehicle; a 6.4
percent increase in the Department of Information
Technology due to the addition of a new 1.0 FTE and an
increase in ongoing operating costs related to the Lotus
Notes Migration CIP project; and an 11.8 percent increase in
Public Works mainly due to the decision to fund vehicles in
the operating budget instead of the capital budget starting in
FY 2016. Non‐departmental expenditures are expected to
increase by 16.9 percent, primarily due to the increases in the
Capital Projects Fund and Debt Service Fund transfers as
described above.
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24. City of Rockville, Maryland
FY 2016 Adopted Budget
FY 2015 FY 2016 $ Change % Change
Property Tax ($650,000 Assessment) 1,898.00 1,898.00 ‐ 0.0%
Water (16,000 gallons per quarter) 422.24 365.92 (56.32) ‐13.3%
Sewer (16,000 gallons per quarter) 459.36 525.48 66.12 14.4%
Refuse 379.00 400.00 21.00 5.5%
Stormwater 112.15 121.60 9.45 8.4%
Subtotal $3,270.75 $3,311.00 $40.25 1.2%
Circuit Step Class 75.00 79.00 4.00 5.3%
Ballroom Dancing Class 96.00 99.00 3.00 3.1%
Wrestling 143.00 145.00 2.00 1.4%
Campventures Summer Camp 395.00 395.00 ‐ 0.0%
Cross Country 59.00 59.00 ‐ 0.0%
Walkoff Broadway Summer Camp 399.00 399.00 ‐ 0.0%
Subtotal $1,167.00 $1,176.00 $9.00 0.8%
TOTAL $4,437.75 $4,487.00 $49.25 1.1%
FY 2015 FY 2016 $ Change % Change
Property Tax ($400,000 Assessment) 1,168.00 1,168.00 ‐ 0.0%
Water (12,000 gallons per quarter) 296.64 289.44 (7.20) ‐2.4%
Sewer (12,000 gallons per quarter) 353.28 407.88 54.60 15.5%
Refuse 379.00 400.00 21.00 5.5%
Stormwater 112.15 121.60 9.45 8.4%
Subtotal $2,309.07 $2,386.92 $77.85 3.4%
Two Senior Center Memberships 80.00 80.00 ‐ 0.0%
Senior Fitness Membership 85.00 85.00 ‐ 0.0%
Microsoft Excel Class 27.00 29.00 2.00 7.4%
Watercolor Class 72.00 75.00 3.00 4.2%
Crab Feast Trip 75.00 80.00 5.00 6.7%
History Lecture 10.00 10.00 ‐ 0.0%
Subtotal $349.00 $359.00 $10.00 2.9%
TOTAL $2,658.07 $2,745.92 $87.85 3.3%
HOUSEHOLD A ‐ Family of 4
HOUSEHOLD B ‐ Senior Couple
upgrades to the sewer and stormwater management systems, major stabilization and rehabilitation to the King Farm dairy
barns, asphalt and concrete repair and replacement, a new utility billing system, and the continuation of the City’s annual
contribution to the Blue Plains Advanced Wastewater Treatment Plant capital program.
The FY 2016 through FY 2020 CIP includes a $1.7 million taxpayer supported bond issue in FY 2017 to address ADA
improvements at the Civic Center Complex and to begin major improvements to the Swim and Fitness Center locker rooms,
$3.0 million in FY 2018 to continue work at the Swim and Fitness Center, and $1.8 million in FY 2019 to support vehicular
bridge rehabilitation on Hurley Avenue. Capital bond issues are also planned for the Water, Sewer, and Stormwater
Management funds over this five year period.
Residential Annual Expenses
The tables to the right illustrate the annual
financial impact of changes to the City’s fees and
charges for two sample households. Household A
represents a family of four and Household B
represents a senior couple. Both households own
single family homes in Rockville. In addition to
property taxes, these examples include utilities,
as well as several recreation activities provided
by the City of Rockville.
It is important to remember that not all
recreation fees are increasing from FY 2015 to FY
2016 and not all Rockville residents use the City’s
recreation services.
Based on the selected activities, the family of
four will see an annual increase of $49.25 or 1.1
percent. The senior couple will experience an
increase of $87.85 or 3.3 percent.
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25. City of Rockville, Maryland
FY 2016 Adopted Budget
The Budget Process
General – The Rockville City Charter requires the City Manager to submit a budget to the Mayor and Council at least two
months before the beginning of each fiscal year. In addition to the operating budget, the City Manager also presents a five
year capital improvements program (CIP) for the Mayor and Council’s consideration. The Mayor and Council schedule and
publish advance notices of public hearings. The budget is approved in the form of an appropriations ordinance.
Budget Amendments – The Mayor and Council give the City Manager the authority to transfer budgeted amounts between
departments within any fund during the fiscal year. The Mayor and Council reserve approval, however, for budget transfers
or other actions that change the total fund appropriations. These changes may only be made with an amendment to the
budget ordinance. The City amends the budget throughout the fiscal year as needed, usually three to four times. Budget
ordinance amendments apply to the operating and CIP budgets. Generally, if expenditure authority is added to a fund, it
must be accompanied by an offsetting revenue source. In some cases, the City has appropriated reserves or fund balance to
fund capital or other one‐time needs during the year.
FY 2016 Budget – In October 2014, Budget staff conducted an internal review of each department’s base operating budget.
In November 2014, the City Manager established budget targets and distributed worksheets to each City department. In
December 2014, in preparation for the development of the FY 2016 Operating budget, staff created budget surveys for the
Mayor and Council to communicate their budget priorities and preferences. Staff compiled the results of the surveys and
incorporated the Mayor and Council’s priorities and preferences into the City Manager’s proposed FY 2016 budget.
On November 24, 2014, staff presented the Mayor and Council with the first FY 2016 budget preview, an overview of all
funds. At this preview, staff presented an overview of known and anticipated significant changes to the General Fund for FY
2016, as well as programmed utility rate increases, and sought direction on how to proceed. On January 5, 2015, the Mayor
and Council were presented with the second budget preview, including the results of the Mayor and Council survey, and
discussed their service priorities for the FY 2016 budget. Internally, in late January 2015, the City Manager held budget
meetings with the senior management team and division heads to discuss their budgets and the priorities for the coming
year. On February 9, 2015, staff presented the Mayor and Council with the third and final FY 2016 budget preview, which
included updates on significant factors affecting the FY 2016 budget, an update on estimated property tax revenue, and
follow‐up to Mayor and Council requests for information.
During February and March 2015, budget staff prepared the Proposed FY 2016 Operating Budget and CIP for presentation
to the Mayor and Council on March 23, 2015. After the proposed budget was presented, the Mayor and Council held four
public hearings on March 30, April 13, April 20, and April 27 to solicit resident responses to the proposed budget.
Concurrent with the public hearings, the Mayor and Council conducted four worksessions on March 23, March 30, April 13,
and May 4, to discuss and finalize their priorities prior to adoption. On May 18, 2015, the Mayor and Council adopted the
budget ordinances and resolutions that set the funding levels, tax rates, and the refuse rate for FY 2016.
On June 22, 2015, the Mayor and Council adopted all position classifications and payscales for FY 2016, which can be found
in the Supplemental Information section of this document. During June 2015, budget staff prepared the Adopted FY 2016
Operating Budget and Capital Improvements Program book. The adopted budget for FY 2016 takes effect on July 1, 2015.
FY 2016 Capital Improvements Program – In October 2014, the City Manager solicited requests from neighborhoods and
homeowners associations for CIP projects. The City did not receive any CIP project requests. For FY 2016, the City continued
its past process of prioritizing CIP projects supported by the Capital Projects Fund. The City prioritized the submitted CIP
projects based on four criteria:
• improves/maintains City facilities or infrastructure;
• improves City operations and service delivery;
• improves the safety, attractiveness, and sustainability of the City for residents, workers, businesses/employers and
City staff; and
• is required to meet legal mandates and adopted plans.
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26. City of Rockville, Maryland
FY 2016 Adopted Budget
The City Manager used the prioritization findings to assist in determining the recommended funding levels for the projects
in the FY 2016 – FY 2020 CIP budget. The prioritization process is discussed in the CIP Overview section of this document; a
more detailed description of the criteria used is included in the Supplemental Information section.
On the following page, the budget process is diagrammed as a flowchart with “swim lanes.” This visual graphic
representation illustrates the sequence and timing of activities in the City of Rockville’s budget process, in addition to the
person or people responsible for completing them. On the vertical “y” axis, the timing of the budget process is represented,
flowing from budget kickoff in late fall at the top to budget adoption in late spring at the bottom. On the horizontal “x” axis,
the groups and individuals with prominent roles in the budget process are represented in “swim lanes:” the Budget Office,
City Departments, the City Manager, the Mayor and Council, and Rockville Residents. This allows readers to quickly visualize
both the timing of certain processes and items and also the group or individual responsible for acting on them. Note the
close collaboration between the Mayor and Council, Rockville residents, the City Manager, and City staff during the public
budget process in March and April. The input and analysis from all of these groups are critical to the creation of a high
quality, transparent, and representative budget.
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27. City of Rockville, Maryland
FY 2016 Adopted Budget
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28. City of Rockville, Maryland
FY 2016 Adopted Budget
Rockville Community Profile
Location of the City of Rockville
Rockville is a 13.5 square mile city of more than 62,000
residents located in south central Montgomery County,
Maryland, approximately twelve miles northwest of
Washington, DC, and 35 miles southwest of Baltimore.
Rockville is bisected from the north by Interstate 270
and from the east by Maryland Route 28. Rockville
enjoys rail service from MARC, in addition to two
stations on the DC Metro Red Line—Twinbrook and
Rockville—plus the Shady Grove station just north of
the city. A large portion of the I‐270 Technology
Corridor’s BioTech Industry Cluster is located in the City.
Maps provided by City of Rockville GIS.
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29. City of Rockville, Maryland
FY 2016 Adopted Budget
History of Rockville
Rockville is one of Maryland's oldest towns, with its origins dating back to colonial America. Long home to Native
Americans including the Seneca and the Susquehannock tribes, the first American settlement in the area that
would become Rockville was an inn and tavern called Owen’s Ordinary, which was established around 1750. At
that time, the Rockville area had very little development and functioned mainly as a crossroad and waypoint
along the road from Frederick to Georgetown.
In 1776, in addition to ratifying the Declaration of Independence, the Maryland Constitutional Convention
created Montgomery County from the southern portion of historic Frederick County and the half dozen
buildings located along the road from Georgetown to Frederick were selected as the new County seat.
Hungerford’s Tavern— an establishment known for the 1774 Hungerford Resolves, a series of protestations of
British rule and arguments for ending trade with England that were intended to influence the 1774 Continental
Congress— was selected to serve as the County’s first courthouse and jail. The new Montgomery County
included the southern portion of the historic road from Frederick to Georgetown, which served as the County’s
port city.
In 1784, local landowner William P. Williams subdivided 45 acres of his land into building lots and began
referring to the settlement as “Williamsburgh”—within 15 years, structures would be built on 38 of the 45 lots
and early Rockville began to resemble a town. In 1788, having outgrown its facility in a converted house,
Montgomery County built its first designed courthouse on the corner of Maryland and Montgomery Avenues—
this structure would be torn down and rebuilt twice, first in 1840 and again in 1890, resulting in the red brick
building that exists today—causing people to begin to refer to the town as “Montgomery County Courthouse.”
In 1791, the Maryland General Assembly complied with the terms of the Compromise of 1790 and ceded 36
square miles of Montgomery County to the federal government to be used for the establishment of the District
of Columbia, resulting in the County’s loss of Georgetown and its port. In 1801, the Assembly noted that the
town around the courthouse—whether “Williamsburgh” or “Montgomery County Courthouse”—had not been
formally recorded. They directed that the town’s lots were to be resurveyed and the resulting town would to be
called Rockville, after Rock Creek. This “new” town was officially recorded in 1803 with a population of 200
residents. Though still very rural, Rockville was becoming the commercial center of Montgomery County.
As the nineteenth century progressed, Rockville continued to grow in population, rising to 365 residents at the
time of the town’s formal incorporation in 1860, on the eve of the Civil War. Rockville saw action during the
War: in 1861, 10,000 Union troops camped at the Fairgrounds (what is now Richard Montgomery High School)
and in 1862 the historic Courthouse was used as a field hospital following the gruesome Battle of Antietam.
Following the War, life in Rockville largely returned to pre‐War rhythms— until the opening of rail service in
1873. B&O Railroad train access opened Rockville up to tony Washingtonians, who quickly built summer
cottages as well as permanent residences in Rockville, as farmland was subdivided for residential growth.
The turn of the twentieth century brought profound changes to Rockville. What had been a rural trading post
and courthouse experienced an influx of city people and modernity. Amenities in Rockville greatly improved as
electricity, telephones, indoor bathrooms, a sewage system, trolley cars, a town park, and street trees were all
installed for the first time. The population of Rockville grew to approximately 1,500 residents in the early 1930s.
Following the end of World War II up through the Census in 1970, Rockville experienced a population explosion
unlike any in its history. From 2,047 residents in 1940, the city grew to 6,934 in 1950, 26,090 in 1960, 42,739 in
1970—a 1,947% increase in 30 years. This population and building boom changed the character of Rockville
substantially and the City came to resemble its current iteration as a vibrant suburb in the greater Washington
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