Rockville Property Tax Is Cut By 1 Cent

Water, Sewer, Trash Rates Rise

Rockville's mayor and City Council last week unanimously approved a $93.8 million operating budget for 2008 that includes a one-cent property-tax cut, tax credits and higher water, sewer and trash collection rates.

The budget, which represents a 9.5 percent increase over the fiscal 2007 budget, calls for a property-tax decrease from 31.2 cents to 30.2 cents per $100 of assessed value. Last year's budget also contained a one-cent property-tax reduction. The reduction, expected to lower city revenue by about $1 million, will mean about $30 in annual savings for homes assessed at $300,000.

To make up for the loss in revenue, the city has imposed a selective hiring freeze and has deferred certain capital improvement projects worth a total of $835,000.

Those deferred projects include two landscaping projects, at Veirs Mill Road and Fallsgrove. The deferrals also include replacement of playground equipment, traffic controls and city vehicles.

The budget, which takes effect July 1, also provides for a $100 property-tax credit for homeowners as part of the state's Income Tax Offset Program. The city also will continue to offer its Homeowners' Property Tax Credit Program, which provides tax relief to low- and moderate-income taxpayers. Last year, 630 households took advantage of the program, which allowed them to shave an average of just over $300 in their property taxes.

The new budget calls for a 10 percent hike in water rates and a 5 percent hike in sewer and trash collection rates.

A decision about changes to the refuse and recycling collection program was deferred, but the budget includes funding of a pilot program, which offers semi-automated weekly pickup in certain neighborhoods.

A copy of the Rockville budget is available at http://www.rockvillemd.gov.

Gaithersburg officials will continue discussion of the city's proposed $38.6 million operating budget June 11. Under the proposal, the tax rate would remain the same, at 21.2 cents per $100 of assessed value.

The proposed budget represents a 9.7 percent increase from the fiscal 2007 budget. Gaithersburg officials say the increases are the result of personnel, service and utility costs, particularly for electricity for facilities and street lighting.

The City Council is scheduled to adopt a fiscal 2008 budget on June 18.

A copy of the Gaithersburg draft budget is available at http://www.gaithersburgmd.gov.