Rockville Tax Rate To Stay Where It Is

Budget Plan Calls for Higher Water Fees

The city manager has proposed a spending plan for the next fiscal year that would leave Rockville's property tax rate unchanged but increase water rates to pay for repairs to aging pipes.

"I refer to this as a 'happy news' budget, as we're providing these services without increasing taxes, as so many nearby jurisdictions are doing," Mayor Susan R. Hoffmann said.

If approved, the property tax rate would remain at 30.2 cents per $100 of assessed value; the monthly trash fee would stay at $32.70.

Officials said they need to raise water rates to pay for a 15-year project to replace the 33 miles of decades-old pipes to comply with state and federal regulations. Last year, the city had a record 65 water main breaks that cost about $250,000 to fix.

The rates would increase to $2.80, from $1.78, per thousand gallons for the first 12,000 gallons; to $4.02, from $2.56, per thousand gallons for the next 12,000 gallons; and to $4.32, from $2.75, per thousand gallons beyond 24,000.

The sewage rate would increase 3.9 percent, to $3.97 per thousand gallons. The ready-to-serve charge that households also pay toward water and sewer would increase 3 percent, to $9.27 per quarter for the average home.

City Council member Piotr Gajewski has asked city staff members to consider other options for raising the water rates so that they would not increase as much during the early phase of the 15-year repair program. Staff members will present those alternatives tomorrow at the council's next meeting.

"I support more aggressive measures in early years when we're in a relatively strong financial position even though tax revenue may go down with the market declining," Hoffmann said.

For the second year, the budget proposal includes a $100 tax credit per owner-occupied house. It also calls for a senior tax credit, which would allow an additional 25 percent property tax relief for homeowners 70 and older, and a homeowners tax credit program for low- and moderate-income families.

For years, the city held back on increasing staff to devote resources to developing Rockville Town Center. City Manager Scott Ullery's plan would add 23 employees. The positions would include two police officers dedicated to traffic and pedestrian safety.

The $103.9 million budget for fiscal 2009, which begins July 1, would increase 10.7 percent over this year's. It comes a year after the mayor and council adopted a budget 2.7 percent smaller than fiscal 2007.

"Things always get more expensive, so expenses already on the budget can increase year to year," Ullery said. "We're adding five new positions in support systems, and we're trying to keep salaries and benefit packages competitive. That and we've got the new [Thomas Farm] Community Center coming online along with a number of other projects."

The budget includes a new program that focuses on a storm water management facility and storm drainage maintenance, stream restoration, sediment control and efforts to meet federal water quality requirements. The program would be funded by the city during the upcoming fiscal year, and an annual fee of $55.80 would be charged per residential lot in fiscal 2010, with slightly higher fees for non-residential parcels.

A second public hearing on the budget (the first was Monday) is scheduled for 7 p.m. April 14 at Rockville City Hall, 111 Maryland Ave. Two work sessions are scheduled for 7 p.m. April 28 and May 5 at City Hall.

The mayor and council are scheduled to adopt the budget May 19. It can be seen at http://www.rockvillemd.gov/government/budget.

Gaithersburg will release its fiscal 2009 budget April 28.